EBARA CORPORATION

Ebara Group Code of Conduct

July 2016

EBARA CORPORATION

EBARA CORPORATION
Contents

1. About the Code of Conduct

• Overview
• Introduction of Each Chapter
2. Group Work

CONFIDENTIAL -2- EBARA CORPORATION

Code of Conduct
– Position in the Corporate Ethics Framework –

This Code of Conduct has been set forth to help Ebara Group employees act in accordance
with The Ebara Way to achieve the Business Plan (E-Plan 2016).

Sustainable global development for the next 100 years

The Ebara Way

Passed down from top to bottom

Built up from bottom to top

Corporate
Plan
activities

Organizational
Policy activities

Individual
Standards activities

CONFIDENTIAL -3- EBARA CORPORATION

Code of Conduct Details
Introduction

The Ebara Group Code of Conduct sets the standard for directors and
employees of the Ebara Group to exercise sound judgment, carry out their
work, and take responsibility for their actions in compliance with laws and
internal regulations, always maintaining a high standard of ethics and pride.
Going beyond compliance.

In line with society and its laws

Compliance with internal
regulations

CONFIDENTIAL -4- EBARA CORPORATION

Code of Conduct Details
Overview
These are important standards
that comprise the foundation for
our business ethics framework.
CONFIDENTIAL
Introduction
Chapter 1 Our Mission and Pride
1. Customer Orientation
2. Business Operations
3. Technology and Production
4. Procurement
Chapter 2 Our Commitment
1. Respect for Fundamental Human Rights
2. Corruption Prevention
3. Information Management and Disclosure
4. Management and Maintenance of Corporate Assets
5. Good Working Environments
6. Global Environment
7. Harmony with Local Communities and Society
Appendix: Five Basic Principles for Action
-5- EBARA CORPORATION
Code of Conduct Details
Chapter 1

Our Mission and Pride

By taking pride in our daily works and always putting forth our best efforts, we aim
to further develop our abilities and potential. In order to exercise our mission to
contribute to the societies and industries globally in the areas of water, air, and the
environment, we pledge here as follows.

We work with pride to fulfill our mission.

CONFIDENTIAL -6- EBARA CORPORATION

Code of Conduct
Chapter 1 – Our Mission and Pride

1. Customer Orientation
(1) High-quality technologies,
products, and services/customer (e.g., checking product quality, and prompt,
safety appropriate handling of complaints)
(2) Responding to customer with
passion and dedication

2. Business Operations
(1) Legal compliance, free (e.g., Fair and impartial business operations and
and fair competition preventing bribery of sales agents)
(2) Legal, appropriate, and
clear contracts

CONFIDENTIAL -7- EBARA CORPORATION

Code of Conduct
Chapter 1 – Our Mission and Pride

3. Technology and Production (e.g., training future

(1) Constant process improvement/innovation engineers and passing on
(2) Advanced R&D manufacturing know-how)
(3) Safe, high-quality, competitive products
(4) Ensuring health and safety
(5) Next generation of engineers

(e.g., Never delaying payment or returning

4. Procurement products without good reason, never
(1) Provide business partners demanding kickbacks)
opportunities for fair trade and competition
(2) Build mutually beneficial partnerships

CONFIDENTIAL -8- EBARA CORPORATION

Code of Conduct
Chapter 2 – Our Commitment

Our Commitment
In order to execute our work with pride by knowing that we are in due
compliance with laws and regulations, and that our stakeholders may have full
confidence in our performance, we hereby pledge as follows.

Commit to the following when interacting with

stakeholders.
1. Respect for Fundamental
Human Rights
(1) Respect human rights
(2) Take action against (e.g., promotion of diversity)
discrimination
(3) Respect diverse values and
individual characteristics

CONFIDENTIAL -9- EBARA CORPORATION

Code of Conduct
Chapter 2 – Our Commitment

2. Corruption Prevention
(1) Never give or take bribes (e.g., prevention of bribery
(2) Respect free and fair competition of foreign public servants)
(3) No relations with Anti-Social Forces
(4) Security Trade Control

3. Information Management and Disclosure

(1) Maintain information with due diligence
(2) Open communication
(3) Publish value of company with facts & w/o slander (e.g., fair disclosure (securities
(4) Manage internal data to prevent leakage report, CSR report)
(5) Actively disclose information honestly

CONFIDENTIAL -10- EBARA CORPORATION

Code of Conduct
Chapter 2 – Our Commitment

4. Management and Maintenance

of Corporate Assets (e.g., no infringement on the intellectual
(1) Use tangible/intangible corporate property of other companie, prevention of
assets for business the infringement of intellectual property
(2) Create and acquire intellectual rights by a third party)
property
(3) Protect intellectual property from
third-party infringements

(e.g., corporate culture with

5. Good Working Environments good communication)
(1) Highest priority on employees’ mental/physical
health and safety, never engage in any kind of
harassment
(2) Promote work-life balance and diversity
(3) Promote good teamwork

CONFIDENTIAL -11- EBARA CORPORATION

Code of Conduct
Chapter 2 – Our Commitment
6. Global Environment
(1) Provide technologies/products/services that
help reduce environmental load
(2) Preserve global environment
by being proactive
7. Harmony with Local Communities and Society
(1) Open communication
(2) Disaster prevention activities, in times of
disaster, recovery efforts and post-
disaster reconstruction
(3) Contribute to sustainable development
CONFIDENTIAL -12-
(e.g., development of energy-
saving products, appropriate
disposal of industrial waste, etc.
(prohibition of illegal disposal)
(e.g., disaster restoration support, such
as donation of products and volunteer
work, and academic-industrial
cooperation)
EBARA CORPORATION
Group Work
Explanation

1. The following are examples taken from the workplace.

Please read them and check whether they violate – or

might violate – the Code of Conduct.

Appoint a group leader.

Fill out the Code of Conduct Answer sheet together. After the
discussion, have the leader present your group’s conclusions.

2. Check answers together.

CONFIDENTIAL -13- EBARA CORPORATION

Group Work
Character introduction
The Company
Mr. Blue/Sales Division Mr. Red/Engineering Mr. Green/Procurement

Company X/Customer Company Y/Vendor Company Z/Customer Company P/Competitor

Ms. Flower

CONFIDENTIAL -14- EBARA CORPORATION

Group work – Check answers –

I
Mr. Blue es un vendedor de la Compañía y se ocupa de las ventas del Dispositivo
1. Un día, estaba haciendo su visitas comerciales cuando decidió ir a la
Compañía X. La Compañía X compró el Dispositivo 1 hace dos años. Durante la
visita a la Compañía X, un empleado presentó una reclamación por el rendimiento
del dispositivo 1 que no era satisfactorio y estaban descontentos con la compra.
Ese día, Mr. Blue todavía tenía que visitar otras empresas, por lo que se
comprometió a ponerse en contacto con la Compañía X para saber más de su
queja, y se fue
Mr. Blue estuvo ocupado después de esa visita, y se olvidó de la Compañía X, el
período de garantía del dispositivo 1 ya había expirado, y la persona que
mencionó el problema no parecía muy serio. Pensó que el cliente se pondría en
contacto con el servicio técnico si fuese necesario, y dejó el caso sin tomar
ninguna acción.
 This violates Chapter 1-1.(2) “We promptly and appropriately resolve
complaints by identifying the cause and prevent any recurrence.”

CONFIDENTIAL -15- EBARA CORPORATION

Group work – Check answers –

II
Mr. Red en la División de Ingeniería recibió la orden de remodelar Dispositivo 1.
Con el fin de planificar la remodelación, hizo algunas copias de los planos del
dispositivo 1. Mirando por encima los planos, encontró un defecto de diseño
fundamental en el Dispositivo 1. Él determinó que para aumentar su resistencia,
la fuerza del componente principal se debe mantener al tiempo que se reduce su
peso. Sus cálculos también revelaron que el dispositivo actual se puede dañar
debido a una resistencia insuficiente en los componentes de los materiales.
Mr. Red consideró diversos materiales y configuraciones y terminó creando un
nuevo diseño revolucionario. Registró el plano de nueva creación como
dispositivo 1 ++, y comenzó el desarrollo del modelo de prueba .
 This constitutes covering up a defect in Device 1 that had already
been delivered. This violation falls under the Code of Conduct, Chapter
1-3.(3) “We apply our best technologies to produce safe, high-quality,
highly competitive products that meet our customers’ needs.”

CONFIDENTIAL -16- EBARA CORPORATION

Group work – Check answers –

III
Después de completar la fabricación del modelo de prueba, la factura
enviada por la Compañía Y fue por $ 10,000, pero el presupuesto final era
sólo por $ 8.000. Mr. Red y Mr. Green prometieron a la Compañía Y que
iban a poner en marcha una orden de fabricación para el modelo
comercial y como resultado obtuvieron el precio a $ 8.000.

 This violates Chapter 1.2.(1) “We comply with laws and regulations,
based on country or region, and always conduct business on the basis
of free and fair competition.” As well as, 1-4.(2) “We strive to build
mutually beneficial partnerships on trust with our business counterparts
through good cooperation…”

In the case of Japan, placing an order without obtaining an estimate or

deciding on the conditions, and then seeking a discount on the billing
amount after completion constitutes “Abuse of a Dominant Bargaining
Position” under the Antimonopoly Act.

CONFIDENTIAL -17- EBARA CORPORATION

Group work – Check answers –

IV Mr. Blue volvió a la oficina y copió los datos de los potenciales clientes para
el Dispositivo 1++ en un lápiz de memoria USB personal para llevárselo a su
casa. Una vez que llegó a casa editó la lista de clientes en su PC de casa,
mientras iba considerando la estrategia para las ventas oficiales del
Dispositivo 1 ++.
Después de sentarse a trabajar, él inició una sesión en Facebook para
hablar con sus amigos durante el trabajo.
 This violates Chapter 2-3.(4) “We manage internal corporate data (e.g.,
confidential information on sales, technologies, individuals, etc.) with
due diligence to prevent any leakage,” in the Code of Conduct.
Taking internal data outside the company is basically prohibited. In
particular, client data is important sales information, and is considered
personal data.
Company information must not be handled on a personal USB device
or PC.

If using Social Media, etc. while company information is stored on

a personal PC, there is a higher chance of data leakage.
CONFIDENTIAL -18- EBARA CORPORATION
Group work – Check answers –
V
Después de que Mr. Blue completara las pruebas del Dispositivo 1 ++ y se fuera, un
ingeniero de la Compañía P, una compañía rival, comenzó la instalación de un
dispositivo en la empresa Z .
El Dispositivo 1++, después de finalizadas las pruebas, se dejó a la vista en un sitio
que estaba al lado de donde estaba trabajando el ingeniero de la Compañía P. El
ingeniero de la Compañía P analizó la estructura del Dispositivo 1++, reconociendo la
naturaleza revolucionaria de los materiales y la configuración del componente
principal, hizo fotos y dibujó algunos bocetos. Más tarde, comenzó la preparación de
una solicitud de patente y rápidamente comenzó a aplicar ese concepto a los
componentes del dispositivo fabricado por la Compañía P
 Device 1++ was left in the open without any attempt to conceal it and
was easily discovered by an engineer from Company P, a rival company.
This is a violation of Chapter 2-3.(4) “We manage internal corporate data
(e.g., technologies…) with due diligence to prevent any leakage, ” and
Chapter 2-4.(3) “Recognizing the importance of intellectual property, we
manage it carefully to protect it from third-party infringements,” in the
Code of Conduct.

CONFIDENTIAL -19- EBARA CORPORATION