We have set out our Compliance Code of Conduct, based on the management philosophy of the FANCL Group, as a guideline for employee conduct in their interactions with customers, business partners, companies, and society in general. The Code prohibits human rights violations, discrimination, harassment, bribery, and other corrupt practices.
We formulated our Compliance Code of Conduct in 2006. Compliance reports are made to our Group Risk and Compliance Committee which is chaired by our CEO and Representative Director. We regularly review our Code in line with societal changes and strive to improve its effectiveness. We have posted an electronic version of the My Compliance and Code of Conduct Handbook on our Company intranet, to explain our Compliance Code of Conduct to our employees in an easily understood format. Hard copies of this handbook have been distributed to each office and store, to ensure thorough awareness of the Compliance Code of Conduct.

The My Compliance and Code of Conduct Handbook is distributed to all employees to help clarify the rules to be followed by FANCL Group employees and to help employees act with a shared sense of awareness. The Handbook clearly explains concepts and expected conduct across 7 areas in 38 themes. It is also used as a training text for new employees and mid-career hires.
We revised the Handbook in the fiscal year ended March 2020 and added new content covering employee relationships with social networking services, disaster countermeasures, international transactions, and SDGs, to make the Handbook more relevant to the times.
Since the fiscal year ended March 2021 we have conducted the FANCL Compliance Test based on the Handbook to ensure that all employees are familiar with our Compliance Code of Conduct, and at the same time, we distribute compliance questionnaires to help us confirm the status of compliance with the Compliance Code of Conduct throughout our Company.
In response to inquiries prompted by the questionnaire, we work with the related departments and strive to respond through in-house training and other steps.

We have several systems in place to quickly detect and correct human rights violations, discrimination, harassment, bribery, violations of laws and regulations, violations of internal regulations, and all other violations of our Compliance Code of Conduct. In addition to conducting questionnaires and surveys, we receive reports through the compliance helpline for employees and business partners, which allows anonymous reporting, as well as our customer centers, which are points of contact for discussions on FANCL's corporate stance, services, compliance, and other issues. The state of compliance and any violations of our Compliance Code of Conduct identified through these systems are reported to the Board of Directors by the Group Risk and Compliance Committee chaired by our CEO and Representative Director.
All instances of compliance violations are thoroughly investigated. We strive to prevent recurrence by finding the cause and correcting it.