Fundamental Philosophy on Corporate Ethics

I．We shall comply with the laws and rules of the countries or regions in which we conduct our business and engage in fair practices based on local moral principles.

• Fair competition

  Fundamental Approach

  • We shall carry out business transactions with respect for the "fair, transparent, and open competition" that is a fundamental principle of a freely competitive society.

  Code of Conduct for Executives and Employees

  • We will comply with all laws and regulations related to the Antimonopoly Act and the Unfair Competition Prevention Act.
  • We will not engage in any form of collusion or agreements that violate laws or social ethics.
• Proper procurement

  Fundamental Approach

  • We shall engage in sound procurement policies, always in compliance with local laws and ordinances.

  Code of Conduct for Executives and Employees

  • We will provide opportunities for our suppliers to engage in fair competition and will fulfill our contractual obligations with integrity.
  • When selecting goods and services, we will always look at economic merits, but we will also give full consideration to environmental, social, and governance (ESG) factors.
• Quality and safety of products and services

  Fundamental Approach

  • We shall comply with local laws and ordinances on quality and safety and provide products and services that meet established standards.

  Code of Conduct for Executives and Employees

  • We will always prioritize the quality and safety of our products and services, striving to prevent accidents before they occur.
  • We will provide timely and accurate explanations and information regarding the quality and safety of our products and services.
  • Using scientific methods, we will continuously work to maintain and improve quality and safety.
• Fair research and development activities

  Fundamental Approach

  • We shall strive to excel in technologies that benefit people’s lives, such as miniaturization and energy efficiency, and carry out fair research and development activities that lead to the creation of new products and business.

  Code of Conduct for Executives and Employees

  • We will not fabricate, falsify, or plagiarize data, research, or experimental results.
  • We will ensure the proper management and administration of public research funds.
• Respect for intellectual property rights

  Fundamental Approach

  • We shall comply with all laws pertaining to intellectual property rights and respect the rights of third parties.
  • We shall also protect and make full use of the Company’s own intellectual property.
  • We shall respect the creativity and hard work of all our employees with regard to intellectual property.

  Code of Conduct for Executives and Employees

  • We will respect third-party trademark rights, design rights, patent rights, and utility model rights. At the same time, we refrain from unauthorized copying or alteration of copyrighted materials, such as newspapers, publications, and software.
  • We will prevent the unauthorized use of SEIKO trademarks and other intellectual property, while also striving to enhance the value of our own intellectual property.
  • We will provide compensation and incentives to any employee who creates an invention in accordance with the Employee Invention Management Regulations.
    Intellectual property rights include trademark rights, design rights, patent rights, utility model rights, copyrights, and other related rights.
• Proper accounting procedures

  Fundamental Approach

  • We shall comply with Japan’s Companies Act, tax laws, and other laws, ordinances, and regulations relating to internal accounting, securities transactions, etc. and carry out proper accounting procedures and reporting in a timely fashion.

  Code of Conduct for Executives and Employees

  • We will maintain an appropriate audit system, ensure accurate accounting in accordance with local tax laws, and fulfill our tax payment obligations.
  • We will accurately record accounting data and provide timely accounting reports to auditors and statutory auditors.
  • To ensure proper accounting and timely reporting to both internal and external parties, we will maintain and improve our accounting processes and systems.
• Prohibition of improper expenditures

  Fundamental Approach

  • We shall make no expenditures that violate laws or ordinances, social ethics, or sound business practices.
  • We shall adhere to all laws, ordinances, and regulations related to improper spending, both in Japan and in each country or region where we operate.

  Code of Conduct for Executives and Employees

  • We will not provide any form of bribes, entertainment, gifts, or other benefits that could be perceived as bribery to public institutions or their employees, or to politicians or candidates, regardless of the individual's position or title.
  • We will not provide goods or monetary offerings to foreign government officials, in accordance with the laws and regulations of the respective countries and regions.
  • When offering entertainment, gifts, or other customary business courtesies to business partners, we will ensure that they remain within the bounds of social norms.
• Maintenance of internal systems

  Fundamental Approach

  • We shall operate free and open workplaces where everyone enjoys mutual respect and cooperates in their work.
  • We shall strive to maintain an environment in which each individual can report, communicate, and seek advice in a proper and timely fashion.
  • We shall always behave properly so as not to harm the interests of either our customers or our Company.

  Code of Conduct for Executives and Employees

  • We will promote active internal discussions to fulfill our social responsibilities and strive to promote each individual's capabilities.
  • We will consistently strive for proper record-keeping and reporting.
  • We will not ask business partners to engage in fraudulent or dishonest business practices.
  • Personal activities such as political or religious activities will not be conducted during working hours or on company premises without permission.
  • We will not accept gifts or entertainment from business partners if such gifts could affect our business or exceed the bounds of customary courtesies, even if the intention is to establish smooth interpersonal relationships.

II．With the aim of being a decent corporate citizen, we shall operate in harmony with society.

• Connection with society

  Fundamental Approach

  • We believe in the importance of the “culture of Time” that has evolved together with the world’s civilizations. To enable it to develop further, we shall contribute to a range of activities in society.
  • We shall contribute to the further development of society through our wide-ranging solutions that meet society’s need for time-keeping, and in various particular areas, such as sports, technology, and industry.

  Code of Conduct for Executives and Employees

  • Through our "timekeeping" business, we will use the hardware and software technologies we have developed to contribute to society.
• Non-engagement with antisocial forces

  Fundamental Approach

  • We shall not engage with any antisocial forces or organizations, nor allow them to intervene in our business, and we shall prevent them from exercising any influence over our Company.

  Code of Conduct for Executives and Employees

  • As a socially responsible company, we have consistently addressed issues related to anti-social organizations or individuals, and we will continue to strengthen our internal management system.
  • We maintain close cooperation with relevant authorities such as the police, and if issues arise, we will promptly report them to the relevant authorities, cooperate with lawyers, and take appropriate actions in a timely manner.
• Political donations, etc.

  Fundamental Approach

  • We shall not make political donations that contravene any laws or ordinances or go against social standards, and we shall maintain healthy and open relations with government-related and political organizations.

  Code of Conduct for Executives and Employees

  • We will not make donations or offer benefits to individual politicians. Additionally, we will not provide donations or benefits to political organizations other than registered political parties or fundraising groups.
  • Any donations made by the company to political parties or political fundraising organizations, or the purchase of party tickets and the like, will be done in compliance with internal company regulations.

III．We shall disclose information in a timely fashion and strive to uphold honest and transparent communications.

• Management of company information

  Fundamental Approach

  • We shall treat information obtained in the course of doing business as the Company’s own property and manage it appropriately.
  • We shall protect information regarding companies and individuals obtained in the course of doing business, and we shall properly manage the collection, use, and handling of this information in accordance with relevant laws, ordinances, and internal regulations.
  • In order to prevent insider trading, we shall comply with the relevant laws and ordinances and carefully manage important, undisclosed internal information.

  Code of Conduct for Executives and Employees

  • We will not personally use internal information or take it outside the company without permission, nor will we disclose or provide it to third parties.
  • Personal information is only used for the purposes explicitly stated at the time of collection.
  • Important corporate information provided by business partners will not be used for purposes other than business execution, nor will it be disclosed or provided to third parties. This includes third parties belonging to companies related to our organization.
  • We will not obtain other companies' corporate information through improper means, either directly or indirectly.
  • We understand that insider trading is subject to penalties and damages under the Financial Instruments and Exchange Act. For both legal and moral reasons, and we will comply with our internal Insider Trading Prevention Regulations.
• Preservation of company assets

  Fundamental Approach

  • All executives and staff shall use Company assets for legitimate business purposes only.
  • We shall not provide any benefits in exchange for the exercise of specified shareholders' rights.

  Code of Conduct for Executives and Employees

  • Company assets include tangible assets and intangible assets (such as brands, know-how, information systems, business models, intellectual property rights, etc.), and we will not use these assets for personal gain.
  • We will not provide special benefits to specific shareholders, nor to their spouses, relatives, or affiliated companies or organizations.
  • Benefits include not only monetary exchanges, but also purchases of goods, subscriptions to magazines or newsletters, advertisement placements, etc., and we will manage these activities appropriately.
• Public relations activities

  Fundamental Approach

  • We shall publicly disclose corporate information in a proper and timely fashion in order to ensure correct understanding among shareholders, securities analysts, journalists, customers, staff, business partners, local communities, etc., both within Japan and overseas.

  Code of Conduct for Executives and Employees

  • Reporting or publishing information to investors, government agencies, or stock exchanges will be handled through the appropriate officers in charge of the respective departments.
  • When disclosing information about our corporate activities, we always consider it to reflect our official company stance, and so ensure that it is approved by the relevant department, and we always strive to provide accurate information.

IV．We shall take care of this precious Earth and contribute to the protection of the environment.

• Environmental protection activities

  Fundamental Approach

  • Since the protection of our global environment is the foundation of a healthy and prosperous society, we shall engage in proactive and continual efforts to protect the environment, not merely by complying with laws and ordinances, but to a greater degree, by following the Company’s basic philosophy on environmental responsibility.

  Code of Conduct for Executives and Employees

  • We make efforts to contribute to the environment in accordance with international treaties, domestic and international environmental laws, and our own company standards during product development and procurement.
  • When selecting parts or packaging materials that are required during the development process, we consider the ease of sorting and recycling, and we will continue to focus on these efforts.
  • In daily operations, we minimize the use of electricity, water, and other resources and use them efficiently.
  • When purchasing goods or services, we strive to promote green purchasing and prioritize environmentally friendly products and services.

V．We shall respect fundamental human rights and individuality and build a corporate culture with a broad vision that fosters the spirit of corporate ethics.

• Establishment of a healthy work environment

  Fundamental Approach

  • Due to our fundamental respect for human rights, we shall strive to create an environment where each person can exercise his or her individuality and originality to the fullest. Only in that way can our business develop and grow in a sustainable manner.
  • We shall strive to realize a healthy and safe environment, free from unfair discrimination and harassment, where all our staff can devote themselves to satisfying work.
  • We shall properly protect the personal information of all members of the Seiko community.

  Code of Conduct for Executives and Employees

  • We respect individuals' basic human rights and value diverse perspectives.
  • We will not engage in discriminatory acts based on race, gender, religion, etc., nor will we condone violent behavior, harassment, or actions that disregard an individual’s dignity.
  • We will comply with all labor laws and maintain a healthy and orderly working environment.
  • We will not tolerate forced labor or child labor, either in our Group companies or at our business partners.
  • We will comply with internal Health and Safety Management Regulations and work to prevent labor-related accidents.
  • We will strive to protect privacy and manage personal information appropriately.