Corporate Philosophy and Code of Conduct

The Yokogawa Philosophy

As a company, our goal is to contribute to society through broad-ranging activities in the areas of measurement, control, and information.
Individually, we aim to combine good citizenship with the courage to innovate.

Published in January 1988

Standards of Business Conduct for the Yokogawa Group

Ⅰ.Basic Principles of the Yokogawa Group

  1. Realizing The Yokogawa Philosophy
    This Company Code imparts the principles of good business for the Yokogawa Group members who aspire to fulfill the Yokogawa Philosophy. "As a group, our goal is to contribute to society through broad-ranging activities in the areas of measurement, control and information. Individually, we aim to combine good citizenship with the courage to innovate."
    We, as members of the Yokogawa Group, conduct business activities according to the Yokogawa Philosophy and carry out duties with integrity.
    We observe the Standards of Business Conduct.
  2. Customer Satisfaction
    From the viewpoint of customer satisfaction, we provide valuable products and services that are useful to society.
    Winning customer satisfaction is the start to gaining the trust of shareholders and all concerned people in the community and society.
  3. Observance of Laws and Regulations
    We observe the laws, regulations, and other rules of society, and conduct business activities with ethical conscience.
    We accept different cultures and respect the laws and social mores of the international community.
  4. Respect for Human Rights
    We value and respect the dignity of each individual and all basic human rights.
  5. Order and Safety of Community and Society
    We do not develop or foster any relationship with any people or groups that threaten the order and safety of the community and society.

Ⅱ.Basic Attitude of the Yokogawa Group

  1. Customers
    We conduct activities with integrity to gain the approval and trust of customers.
    We provide accurate and ample information to customers so that they can use our products and services in safety and with satisfaction.
  2. Shareholders
    We use, maintain and enhance corporate assets efficiently and effectively to win the trust of our shareholders.
    We openly and accurately disclose corporate and management information to our shareholders.
    We maintain a sound and clear relationship with our shareholders.
  3. Community and Society
    We strive to achieve the common goals of the community and society, including protection of the global environment and the building of prosperous societies.
    We endeavor to be a friendly and cooperating member of society and participate positively in the activities of society.
  4. Suppliers and Vendors
    We work sincerely and soundly with suppliers and vendors and treat them fairly and equally.
    We refrain from making any contacts with the suppliers or vendors that may be misinterpreted as abuse of a special relationship, and we maintain sound and open relationships.
  5. Competitors
    We compete fairly, openly and freely with other suppliers.
  6. Politicians and Governmental Agencies
    We maintain sound and open relationships with politicians, public servants and people related to them.

Ⅲ.Guideline of Conduct for Yokogawa Group Members

  1. Workplace
    We maintain an active, bright, safe and sound company atmosphere that we can take pride in.
    We pay careful attention so that none of us would suffer from harassment, unfair treatment, or infringement of privacy.
  2. Group Assets
    We use the assets of the Yokogawa Group only for Group-related business activities.
  3. Management of Information
    We fully recognize the value of the knowledge within the Yokogawa Group and that of business partners, and maintain strict records and guardianship of this information.
    We use information obtained through business activities only for business purposes.
  4. Avoidance of Conflict of Interest
    We conduct our business activities neither for personal gain nor to take advantages of business positions. Furthermore, we conduct our activities in such a way that the Yokogawa Group suffers no losses or damage.
  5. Prudent Personal Activities
    We act responsibly, in private and on business, so as not to impair the Yokogawa Group's credibility or reputation or cause any losses or damage to the Group.

United Nations Global Compact

Yokogawa signed UN Global Compact in 2009 and expressed its support of 10 principles concerning human rights, labor, environment, and corruption prevention the UN advocates. We are promoting efforts toward materialization of the 10 principles with our stakeholders through such efforts as participation in Global Compact Network Japan, a local network of Japan.
Kofi Annan, former Secretary-General of the UN, first proposed the Global Compact at the World Economic Forum in 1999; the UN officially launched it in 2000. Participating companies are expected to uphold and practice international standards relating to human rights, labor, the environment, and anti-corruption.
Today, Yokogawa does business around the world and its actions affect economies, societies, and the environment. Recognizing its role as a global company, it abides by international norms and actively works to address urgent international issues such as the environment and human rights.


Global Compact logo

The Standards of Business Conduct for the Yokogawa Group call for the realization of the Yokogawa Philosophy, enhancement of customer satisfaction, observance of laws and regulations, respect for human rights, and maintenance of the order and safety of communities and society. Yokogawa is committed to fulfilling its various fundamental responsibilities as a company, including maintaining compliance and contributing to society through its businesses.
Yokogawa has participated in the Global Compact Initiative, an international undertaking advocated by the United Nations, since 2009. Accordingly, the Company endeavors to support and practice the Compact's ten principles relating to human rights, labor, the environment, and anti-corruption. Yokogawa strives to ensure that its global network of Group companies and suppliers shares the same commitment to these principles.
Looking ahead, every effort will be made to fulfill our corporate responsibilities as a globally operating company.

Yokogawa Electric Corporation
President and CEO
Takashi Nishijima


Below are the ten principles of the UN Global Compact, followed by Yokogawa's efforts in each area:

Human Rights

Principle 1:
Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2:
make sure that they are not complicit in human rights abuses.

Labor Standards

Principle 3:
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
 
Principle 4:
the elimination of all forms of forced and compulsory labor;
 
Principle 5:
the effective abolition of child labor; and
 
Principle 6:
the elimination of discrimination in respect of employment and occupation.
 

Environment

Principle 7:
Businesses should support a precautionary approach to environmental challenges;
Principle 8:
undertake initiatives to promote greater environmental responsibility; and
Principle 9:
encourage the development and diffusion of environmentally friendly technologies.
 

Yokogawa's Efforts:

Anti-Corruption

Principle 10:
Businesses should work against corruption in all its forms, including extortion and bribery
 

Yokogawa's Efforts:

ISO 26000

ISO 26000, issued by the International Standardization Organization in November 2010, is an international standard for the social responsibilities of corporate entities, presenting seven core subjects including organizational governance, human rights, labor practices, environment and fair operating practices.

We at Yokogawa, as a company active in the global marketplace, adhere to ISO 26000 and uphold corporate governance as a key principle of Corporate Social Responsibility (CSR), which forms the foundation of corporate management. As such, we are committed to the implementation of socially responsible programs/activities designed to contribute to society through business operations, environmental conservation and the assurance of human rights in order to meet our shareholders' expectations.

The core subjects of ISO 26000 and our key efforts in regard to these subjects are explained below.

6.2 Organizational governance

6.3 Human rights

Issues

  1. Due diligence
  2. Human rights risk situations
  3. Avoidance of complicity
  4. Resolving grievances
  5. Discrimination and vulnerable groups
  6. Civil and political rights
  7. Economic, social and cultural rights
  8. Fundamental principles and rights at work

6.4 Labour practices

Issues

  1. Employment and employment relationships
  2. Conditions of work and social protection
  3. Social dialogue
  4. Health and safety at work
  5. Human development and training in the workplace

6.5 The environment

Issues

  1. Prevention of pollution
  2. Sustainable resource use
  3. Climate change mitigation and adaptation
  4. Protection of the environment, biodiversity and restoration of natural habitats

6.6 Fair operating practices

Issues

  1. Anti-corruption
  2. Responsible political Involvement
  3. Fair competition
  4. Promoting social responsibility in the value chain
  5. Respect for property rights

6.7 Consumer issues

Issues

  1. Fair marketing, factual and unbiased information and fair contractual practices
  2. Protecting consumers' health and safety
  3. Sustainable consumption
  4. Consumer service, support, and complaint and dispute resolution
  5. Consumer data protection and privacy
  6. Access to essential services
  7. Education and awareness

6.8 Community involvement and development

Issues

  1. Community involvement
  2. Education and culture
  3. Employment creation and skills development
  4. Technology development and access
  5. Wealth and income creation
  6. Health
  7. Social investment
 
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