Management

The Furukawa Electric Group
Basic CSR Policy

Each of the companies that make up the Furukawa Electric Group undertakes CSR activities in accordance withthe following basic Group policy.

We fully recognize the responsibilities of the Furukawa Electric Groupto society and will strive to maintain and improve on solid, friendly
Basic Policy

relationships with all of our stakeholders and contribute to thesustainable development of society through corporate, environmental
and social activities.

As a basic philosophy underpinning our CSR activities, we have also prepared a set of Furukawa Electric GroupAction Guidelines.
The officials and employees of the Furukawa Electric Group will perform their duties inaccordance with the following action guidelines.
We, the Company officials and employees of the Furukawa Electric Group, will:(1) Fully recognize the responsibilities of the Furukawa Group to society and strive to maintainand improve on solid, friendly relationships with all of our stakeholders and contributeto the sustainable development of society through corporate, environmental and socialactivities.

Furukawa
ElectricGroup ActionGuidelines(2) Aim to create a company that is useful to society by developing products designed to aid
the development of society and by providing reliable products and services.
(3) Comply with domestic and international laws and regulations and act in accordance withinternal regulations and other rules such as social norms and ethics.
(4) Properly display and adequately disclose financial statements and other corporateinformation.
(5) Deal with antisocial groups in a resolute manner.
(6) Strive to act with consideration for the protection of the global environment.
(7) Respect human rights, cultures and traditions as a member of the international community.
(8) Create a company whose employees feel motivated, comfortable and fulfilled.

Corporate Governance

Board of Directors and Board of Corporate Auditors
As a rule, the Board of Directors holds
two regular board meetings each monthand extraordinary board meetings as andwhen necessary to speed up decision
making. There is also a support structure
in place enabling outside directors andauditors to attend meetings provided thatthey have a sufficiently in-depth understanding of the issues being discussed,with the opinions of outside officials respected as part of the decision makingprocess. It is through measures such asthese that we ensure that the Board ofDirectors is able to sufficiently function
in an operational monitoring and supervisory capacity as the core of our corporate
governance operations. We have also set
up a CSR and Risk Management Committee under the supervision of the Board ofDirectors, with members consisting of thePresident, Chief Officers and Company
Presidents. This acts as a framework forthe promotion of CSR and risk management activities from an overall groupwide
perspective.
We place great importance on thefunction performed by our Corporate Auditors and Board of Corporate Auditors,
which are independent of the Board of Directors and have incorporated the establishment of a Board of Auditors into theinstitutional design of the Company itself.
Based on close collaboration between ourCorporate Auditors, Accounting Auditors
and the CSR Division, which acts as ourAuditing Department, including sharing
information and exchanging opinions, wecontinue to make every effort to strengthen our auditing capabilities.

ational performance, operations are runby the Company Presidents and operations relating to matters such as groupwide strategies, resource allocation andadministration handled by the relevant
Chief Officer. Details of such operations
are then reported back to the Board ofDirectors on a quarterly basis.

Operational Performance
Our operational structure is based ona company system and a chief officer system. Under the supervision of the President, who is responsible for overall oper-Corporate Governance Organization Chart

Management

CSR Management

CSR Promotion Framework
To further enhance and reinforce ourCSR activities, on February 16, 2007,
the Furukawa Electric Group appointed
a Chief Social Responsibility Officer(CSRO) to spearhead our new CSR Division. The CSR Division consists of an Auditing Department, the Export Security
Administration Department and the Safety and Environment Promotion Depart-ment and features a newly established
Administration Department. In addition
to stepping up all-round monitoring ofcorporate activities from the standpointof CSR, covering areas from complianceand risk management to safety, environmental protection and social contribution, and promoting CSR activities ona standardized basis, we now have theframework in place to be able to take anynecessary action should problems arise,
including investigating allegations andthe causes of problems, implementingremedial or preventive measures and releasing statements, to deal with all eventualities quickly and appropriately.

our social responsibilities as a manufacturer. Elsewhere, we are putting in place
the necessary framework in response to
the so-called Japanese SOX Act, revolving primarily around a newly establishedproject team, and are making every effort
to enhance our corporate value throughthe establishment of a comprehensive
internal control system, including steps
such as striving to maintain and improve
the reliability of financial reporting on agroupwide basis.

CSR Promotion FrameworkIn addition to our CSR activities, theFurukawa Electric Group has also set upa Quality Promotion Department under
the supervision of our Chief Production
Officer (CPO). We are undertaking quality control activities for all of our products, which represent the foundations ofCompliance

Compliance
The Furukawa Electric Group definescompliance as “going beyond simply
abiding by laws and regulations by actingin accordance with the values and ethics
required of the Company and its employees as responsible members of society.”
Working to the Furukawa Electric Group

Action Guidelines as our basic philosophy on ethical and legal compliance, wecontinue to promote in-house education,
inspections to prevent any infringementson the law and a range of other compliance-related activities. We have put together a Central Compliance Committee,

chaired by the Chief Social Responsibility Officer (CSRO), to organize thepromotion of compliance activities, withsubordinate compliance committees alsoin place at individual works and branches
around the country.

Compliance Education
Having compiled a set of Action
Guidelines for Company Officials andEmployees outlining specific codes ofconduct and an accompanying manualcontaining additional explanations, bothbased on our Furukawa Electric Group
Action Guidelines, we combined the publications with a message from the President into a booklet called the Compli-ance Handbook, which we distribute toall officials and employees as part of ourongoing educational schemes targetingcompliance in the workplace.

Compliance Handbook

Internal Reporting System
To enable early detection of compliance violations and corrective action,
we operate a system whereby company
officials and employees can file anonymous reports directly with the Central
Compliance Committee (namely, aninternal reporting system). Using a pro-

prietary system developed by Furukawa,the system includes features such as
the ability to receive reports whereby
the reporting party remains anonymous
whilst still exchanging emails between
the reporting party and the Company.
The system thus enables communication

between the Company and the reporting
party, including feedback to the reporting party on the Company’s response tothe matter. The findings of investigations
into reported matters and details of theCompany’s response are reported to theBoard of Directors as appropriate.

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