Message / Philosophy｜Nippon Shikizai, inc

Our company, Nippon Shikizai, was founded in 1930. We started as a pigment manufacturer for cosmetics before World War II, and after the war, since way before the time when outsourcing became a well-established business practice, we‘re partnered with cosmetics companies as an OEM manufacturer. Our products are used by companies both inside and outside of Japan, including major global brands. We have achieved high level of trust as an OEM manufacturer and an ODM manufacturer by improving our research and development skills and consistently manufacturing high-quality products. In other words, our company has thrived in cosmetics industry for many years as a professional group of cosmetics R&D, and manufacturing provider. There fore, in terms of sales which require abundant experience and diverse knowledge, we are a to tally amateurs. For this reason, rather than expanding into new businesses, it is important for us to further refine and strengthen the skills we have built up in our field, developing Nippon Shikizai into an even more appealing company. Our greatest strengths as a professionalin R&D, and manufacturing provider are our technical expertise and high product quality. I must say that there is no other company that can copy us in these areas. One of the reasons we have been able to maintain this high level of performance is that we are investing sufficient budget and human resources into R&D, and manufacturing technology. The achievement of an integrated business system through our total support formation is another major factor. We continue to maintain this integrated system because we take complete responsibility for the final product provided to our customers. Taking responsibility for the products we create is a totally natural thing. The ability to maintain stability and consistency in putting this system into practice is one of Nippon Shikizai's unique characteristics.
Chairman
Kouji Okumura

Nippon Shikizai Group's corporate philosophy

The fundamental goal of our company is creating beauty and health, and we strive to create a society with abundance in heart, knowledge, and lifestyle variety through our business activities. As a result, we are able to contribute to the improvement of daily life and culture through the development of an energetic and comfortable society, and this is our corporate philosophy.
Through the following fundamental management policy, we will clarify our basic way of thinking and guidelines, ensure thorough understanding of this knowledge throughout the group, build a healthy and stable company framework for growth, and progress by leaps and bounds.

Fundamental management guidelines

1. Project goals

Through our sales, technology, quality, and services, we aim to be the top company in the OEM and ODM cosmetics and pharmaceuticals industry.

2. Project approach

Using abundant ideas and willingness to take on challenges to create the products people dream of. Using the high-level specialized technology and abundant information sources we have built up through our long years in business, we provide products and services with quality that our customers trust. Through this framework, we satisfy their needs.

3. Management approach

Out of respect for our customers, stockholders, investors, employees, cooperating companies, and other related parties, we carry out management in a way that is highly transparent in terms of financial affairs, management conditions, and overall business activities while at the same time striving for suitable profits and stable returns.

4. Social roles

As a part of society, we ensure the company complies with related laws and regulations, living up to people's expectations. Also, we proactively carry out environmental preservation activities, working to coexist in harmony with nature.

5. Corporate culture

We respect individuality and human rights to develop mutual trust in one another. In addition, we maintain active communication and information transmission within our organization, sharing awareness of problems even among staff working in different fields, helping to create an atmosphere that encourages discussion among our employees.

Code of conduct

1. Code of conduct related to society

(1) Compliance with laws and regulations: In the course of carrying out our business activities, we make a point of maintaining understanding and compliance with the business-related laws and regulations in the various countries where we do business, as well as their accounting standards.
(2) Awareness and respect for ethics: We respect societal common sense and ethical awareness, refraining from actions in violation of them.
(3) Environmental preservation: In the course of our business activities, we always maintain awareness of the importance of environmental preservation, complying with environmental laws and proactively carrying out environmental preservation activities.
(4) Prohibition on interaction with antisocial forces: We maintain no relationship whatsoever with the antisocial forces and gangs that threaten the order and stability of society, and never carry out any actions which could assist them in their activities in any way.

2. Code of conduct related to customers, clients, and competitors

(1) Respect for customers

We provide products and services that satisfy our customers.

[1]Providing products with safety you can trust.
[2]Carrying out appropriate provision of information related to products.
[3]Responding sincerely, promptly, and appropriately to customer requests and consultations.
[4]Working to develop and improve products for better customer satisfaction.

(2) Compliance with Pharmaceutical Affairs Law and related laws and ordinances

We comply with the intentions of applicable laws and ordinances through safety management, quality assurance, and fair transactions.

(3) Protecting intellectual property rights (patents, practical model rights, design rights, trademarks, etc.)

We proactively apply the intellectual property rights resulting from our research and development and ensure they are protected and managed appropriately. In addition, we respect all valid third-party intellectual property rights, and never infringe on them or use them improperly.

(4) Sound relationships with suppliers and government authorities

We do not engage in cartel activities or other measures that attempt to infringe on free and fair competition. In addition, we treat cooperating companies, dispatch employees, and other related parties fairly, and never abuse them or take a position of superiority. We refrain from giving or receiving monetary gifts or conveniences from our suppliers and clients that go beyond the globally-accepted notions of acceptability. Also, we never carry out any activities which could be interpreted as providing improper benefits to government authorities.

3. Code of conduct related to stockholders, investors, and the marketplace

(1) Proper preparation of financial statements: We draft financial statements which properly display the company's financial conditions and management achievements, protecting the profits of stockholders, investors, and the marketplace.
(2) Immediate and proper disclosure of management information: In order to ensure proper understanding of our company's financial status, management conditions, and overall business activities, we endeavor to disclose the necessary information with appropriate timing.
(3) Prohibition on insider trading: We comply with the "Insider Trading Prevention and Control Regulations" and never engage in insider trading or other activities that could be interpreted as such.

4. Code of conduct related to employees

(1) Maintenance of the office and labor environments: We maintain our work environments with preserving safety and hygiene as the number one priority. We comply with the terms of the Labor Standards Act, Industrial Safety and Health Act, and other related laws and ordinances, creating a workplace that is easy to work in with peace of mind and health.
(2) Respecting human rights, prohibition on discrimination and sexual harassment: In keeping with the spirit of respecting fundamental human rights, we eliminate all unreasonable discrimination based on gender, age, place of birth, country of citizenship, race, tribe, ideology, creed, religion, disease, and disability, and endeavor to create a workplace free of sexual harassment and other unfair treatment.
(3) Creating a cheerful workplace: In addition to not committing actions in violation of the rights established by the employment regulations and other internal company guidelines, we work to create an environment in which employees can feel free to point out violations committed by others.
(4) Ensuring communication and sharing of information: We encourage organization supervisors to invigorate information transmission throughout their organizations, share information and awareness of problems even if they are outside of their own personal fields, and create a working environment in which employees can discuss these issues with one another.
(5) Corporate ethics: establishing an "internal report system": We established the "internal report system" as a corporate ethics consultation window, and this company hotline is off-site, separate and independent from the ordinary chain of command.

5. Code of conduct related to compliance with internal company regulations and management of company assets

(1) Compliance with internal regulations: We maintain compliance with the company's articles of incorporation, as well as various regulations and rules, in the course of carrying out work operations, and carry out revision and elimination of these regulations as necessary and without delay, taking measures to ensure they are thoroughly understood and common knowledge.
(2) Prohibition on misappropriation of company assets: We make efficient use of company assets, and endeavor to prevent damage and theft, regardless of whether the applicable assets are tangible or intangible.
(3) Duty of confidentiality: We strictly manage confidential information, personal information, and other internal matters, and never leak this information.
(4) Distinction of public and private: We keep a clear distinction between public positions as a company and private positions as individuals, and strictly manage this separation.

6. Code of conduct related to proper handling of information

(1) Appropriate acquisition, usage, record-keeping, and management of information

[1]For information from outside the company, we use proper methods for acquisition, usage, and management (storage or elimination), maintaining awareness of possible infringement on copyrights or other intellectual property rights.
[2]For personal information, we gather, use, and store it using appropriate and fair methods, and never use it for outside purposes or disclose it to any third party without a proper reason such as the permission of the applicable person.
[3]Regarding information acquired in the course of completing projects and activities, this information is managed properly in accordance with laws, ordinances, and internal company regulations.
[4]We endeavor to ensure safety through security countermeasures and information leak prevention, and if there are irregularities or dangerous warning signs identified, we take action to the best of our ability.

(2) Preserving confidential information

Regardless of whether the currently employed or retired, staff will never disclose the company's confidential information (including both personal information and technology information) to any third party without consent or otherwise use it improperly for personal gain.

(3) Preventing leaking of insider information

We comply with the "Insider Trading Prevention and Control Regulations" and do our utmost to prevent the leaking of confidential company information which could be used for insider trading.

※Excerpt from the ”Nippon Shikizai Group Corporate Activity Charter”