Compliance and Risk Management

Based on our compliance regulations, we have established a Compliance Committee chaired by a director. The Compliance Committee meets, in principle, once a quarter (and as needed when compliance-related matters arise) to strengthen the operation of the compliance system within our group and to deliberate on and resolve compliance-related issues and challenges.

Furthermore, we have appointed compliance promotion officers in each of our departments and subsidiaries, and we are working to promote compliance by disseminating compliance regulations and other relevant information within each department and subsidiary.

Regarding compliance education, we offer a mandatory course for all employees every year, and we also have a compliance section on our company website where we publish compliance newsletters and case studies every month.

Our company has established internal reporting regulations and a system in place that allows employees to report compliance issues anonymously via email, telephone, etc., to a reporting hotline that includes lawyers. We also strive to prevent any adverse treatment of those who report issues and to ensure fairness.

Based on our Risk Management Regulations, we have established a Risk Management Committee under the Director in charge of Risk Management. This committee meets regularly (once every two months) to oversee risk management for our group companies. It also has subcommittees for each risk category, such as compliance, information security, quality, export control, environment, and disasters. The committee receives reports on the status of risk management from each subcommittee, evaluates newly identified risks, and takes action against risks that have materialized.

Each subcommittee evaluates risks based on two axes: impact and likelihood of occurrence. For high-risk risks, measures are taken to mitigate the risks, and appropriate management is implemented, including establishing monitoring mechanisms according to the level of risk. For the current fiscal year, the major risks that we recognize as potentially having a significant impact on our group's operating results, financial condition, and cash flow are as follows:

In addition, we manage risks by seeking advice from external experts such as legal counsel and certified public accountants as needed throughout our business operations.

Our company considers the ISO management system to be one of the foundations of our governance. In order to realize the social norms required in our business activities, we utilize the framework of the ISO management system and implement a cycle of policy/objectives → goals → activities → evaluation → improvement.

Under our Environmental Management System (ISO 14001), each department implements activities to reduce environmental impact by complying with environmental laws and regulations and incorporating the perspective of the SDGs, under the guidance of the Environmental Management Committee. We position improving customer satisfaction and environmental conservation as one of our most important management priorities, and we contribute to the development of society by considering environmental protection and resource conservation in all aspects of our business activities.

Our departmental goals include not only reducing the environmental impact of our business activities, but also increasing their positive impact. Furthermore, in collaboration with the Environmental Strategy Promotion Office, established in 2024, we are conducting activities such as measuring greenhouse gas emissions generated by our business activities and setting medium- to long-term reduction targets.

Our Information Security Management System (ISO 27001) is designed to balance the confidentiality, integrity, and availability of information while strengthening our response to information leakage risks. We prioritize information security in all aspects of our business activities, ensuring the secure protection of our customers' data and providing a safe and reliable environment. We will continue to strive for improvement and maintenance of information security, aiming to remain a company that earns even greater trust from our customers.

In our quality management system (ISO 9001), we conduct activities related to the establishment and maintenance of a quality assurance system throughout the process from product planning and development to manufacturing, sales, and after-sales service. As a measuring instrument manufacturer, we also place great importance on ensuring traceability. Furthermore, by applying our company's unique design standard, OIS (Onosokki Industrial Standard), we prioritize product safety, functionality, and precision in our product development. Since 2024, we have been incorporating LCA (Life Cycle Assessment) into our development process to reduce the environmental impact of our products. We will strive to maintain our certification in the future and work to improve and strengthen our quality assurance system based on the ISO 9001 quality management system in order to deliver even higher quality products to our customers.

Furthermore, our company is a calibration laboratory officially recognized by the National Institute of Technology and Evaluation (IAJapan) Accreditation Center under the Japan Calibration Service System (JCSS), a calibration service provider accreditation system stipulated in Article 143 of the Measurement Law. Based on ISO 9001 certification and the general requirements for competence in calibration of ISO/IEC 17025, we provide highly reliable and advanced calibration services.

Our business of manufacturing measuring instruments is based on customer trust, and in this business, we place great importance not only on the precision and quality of our products but also on social responsibility. We will continue to strive to realize social norms through the ISO management system.

Recognizing that co-creating value with diverse stakeholders such as customers, shareholders/investors, business partners, society, employees, and local communities is crucial for improving corporate value in the medium to long term, our company understands the need for appropriate collaboration with multiple stakeholders and is committed to achieving this. Furthermore, we strive to appropriately distribute the profits and results generated through value co-creation and productivity improvements to these multiple stakeholders.

Our company uses "fair trade" as a fundamental guideline and selects business partners based on a comprehensive evaluation of factors such as quality, price, delivery time (stable supply), technical capabilities, and management stability, regardless of nationality or size.

We declare our commitment to building new partnerships by promoting collaboration and mutual prosperity with our supply chain partners and businesses striving to create value.

Based on our sustainability principles, we are committed to creating products and developing technologies that protect the global environment. We also strive to avoid using conflict minerals, which contribute to tribal conflicts, human rights abuses, and environmental destruction.

In accordance with the spirit of respecting human rights, our company will create a workplace environment where everyone can work fairly and with peace of mind. Furthermore, in addressing human rights issues that may arise through our business activities, we will not only refrain from violating human rights ourselves, but also strive not to encourage human rights violations, thereby fulfilling our responsibility to respect human rights.

From a diversity, equity, and inclusion (DE&I) perspective, we emphasize incorporating diverse viewpoints to strengthen management capabilities and ensure sustainable growth.

To achieve the medium- to long-term goal of increasing the proportion of women in leadership positions, we will create an action plan and promote women's participation in the workforce. Furthermore, we will explore work styles that accommodate changes in circumstances such as childcare and elder care, and create an environment that enables continuous employment.

Our company will treat our diverse stakeholders, including shareholders, with sincerity and fairness, and will also engage in more proactive information disclosure.

In addition to appropriately disclosing information required by law, we will also proactively disclose information of high interest to investors and shareholders, such as management strategies, business plans, risks, and governance, as well as information related to investment decisions, thereby fulfilling our accountability. When disclosing information, we will strive to use clear and easy-to-understand language from the perspective of our stakeholders.