Compliance Risk Management

In accordance with our Compliance Regulations, we have established a Compliance Committee, which is chaired by a director. The Compliance Committee meets in principle once every quarter (and as needed if compliance-related issues arise) to strengthen the operation of the Group’s compliance framework and to deliberate and resolve compliance-related issues and challenges.

We also appoint compliance promotion managers within each department and subsidiary to promote compliance, including ensuring awareness of the Compliance Regulations and related policies within their respective organizations.

For compliance education, we have established an annual mandatory course for all employees, and we have created a compliance section on the Company intranet where we publish monthly compliance newsletters and case studies.

We have established Internal Reporting Regulations that allow individuals to report compliance-related issues—anonymously if desired—via email, telephone, or other means to reporting hotlines that include external legal counsel. At the same time, we strive to ensure fairness by preventing any disadvantageous treatment of whistleblowers.

In accordance with our Risk Management Regulations, we have established a Risk Management Committee overseen by the director in charge of risk management. The committee meets regularly (every two months) to oversee risk management for the Group. It has subcommittees for each risk category—such as compliance, information security, quality, export control, environment, and disasters—that report on their risk management status. The committee evaluates newly identified risks and addresses risks that have materialized.

Within each subcommittee, risks are assessed on two axes: impact and likelihood of occurrence. High-risk items are addressed through risk-reduction measures, and monitoring systems are established according to risk level to ensure appropriate management. In the current fiscal year, the principal risks recognized as potentially having a significant impact on the Group’s operating performance, financial condition, and cash flow are as follows.

In addition, we manage risk across all aspects of business execution by obtaining advice as needed from external experts such as outside legal counsel and certified public accountants.

We regard the ISO management system as one of our governance foundations. To realize the social norms required in our business activities, we apply the ISO management system framework and operate a policy/objectives → targets → actions → evaluation → improvement cycle.

Under our environmental management system (ISO 14001), each department carries out activities to reduce environmental impact under the guidance of the Environmental Management Committee, incorporating compliance with environmental laws and SDGs perspectives. We position improved customer satisfaction and environmental conservation as one of our most important material issues, ensuring that environmental protection and resource conservation are considered in all aspects of corporate activities, thereby contributing to social development.

In addition to reducing the environmental impact generated by our business activities, we also set goals to increase positive impacts. Working in coordination with the Environmental Strategy Promotion Office we established in 2024, we measure greenhouse gas emissions from our business activities and set medium- to long-term reduction targets.

Under our information security management system (ISO 27001), we strengthen measures to address the risk of information leaks while balancing confidentiality, integrity, and the availability of information. By considering information security in every aspect of our corporate activities and reliably protecting customer data, we provide an environment where customers can use our products with confidence. We will continue to enhance and maintain our information security to remain a trusted company.

Under our quality management system (ISO 9001), we build and maintain quality assurance systems throughout all processes—from product planning and development to manufacturing, sales, and after-sales service—while emphasizing traceability as a measuring instrument manufacturer. We apply our proprietary design standard, OIS (Onosokki Industrial Standard), to ensure product safety, functionality, and accuracy. Since 2024, we have life cycle assessment (LCA) into our development process to reduce the environmental impact of our products. We are committed to maintaining certification into the future, improving and strengthening our ISO 9001-based quality assurance system to deliver even higher-quality products to our customers.

Additionally, we are an officially recognized calibration organization under Article 143 of Japan’s Measurement Act, which outlines the Japan Calibration Service System (JCSS), certified by the National Institute of Technology and Evaluation’s accreditation body (IAJapan). Based on ISO 9001 certification and the general requirements for competence of calibration laboratories (ISO/IEC 17025), we provide highly reliable, advanced calibration services.

Measuring instruments—the core of our business—are built on customer trust, where product accuracy, quality, and social responsibility are paramount. We will continue to pursue the realization of social norms through ISO management systems.

Recognizing that value co-creation with diverse stakeholders—including customers, shareholders and investors, business partners, society, employees, and local communities—is essential for enhancing corporate value over the medium to long term, we are committed to constructive collaboration with multi-stakeholders to achieve this. Furthermore, we strive to ensure the appropriate distribution of revenues and outcomes generated through value co-creation and productivity improvements among our multi-stakeholders.

We consider fairness in transactions to be a fundamental guideline. Regardless of nationality or company size, we comprehensively evaluate factors such as quality, price, delivery schedule (stable supply), technological capability, and management stability when selecting business partners.

We declare our commitment to building new partnerships by promoting coordination and mutual prosperity with supply chain partners and businesses engaged in value creation.

Based on our Basic Policy on Sustainability, we are committed to product development and technological innovation that contribute to the conservation of the global environment. We also strive to avoid the use of conflict minerals, which are linked to tribal conflicts, human rights violations, and environmental destruction.

In line with the spirit of respect for human rights, we are committed to creating a workplace environment where everyone can work fairly and with peace of mind. In addition to refraining from committing human rights violations ourselves, we strive not to contribute to or promote such violations, thereby fulfilling our responsibility to respect human rights.

From the perspective of diversity, equity, and  inclusion (DE&I), we emphasize incorporating diverse viewpoints to strengthen our 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.

We respond to our shareholders and other diverse stakeholders honestly and fairly, while also pursuing more proactive information disclosure.

In addition to appropriately disclosing information as required by laws and regulations, we actively disclose business strategies, business plans, risks, governance matters, and other information of high interest to investors and shareholders, as well as information relevant to investment decisions, thereby fulfilling our accountability. When disclosing information, we strive to present it clearly and accessible from the stakeholder’s perspective.