Basic Stance

Our basic approach to corporate governance is to promote highly transparent management that is committed to the steady development of operations in our core business domain.
Our corporate philosophy is: “We contribute to the health and happiness of people around the world through pursuit of excellence in life science in general and our research and experience in microorganisms in particular.” In the pursuit of this philosophy, we believe it is important to implement transparent management with an emphasis on well-developed internal control functions, including appropriate management organization and pertinent decision-making.

Corporate governance framework

Basic Stance on Internal Control System and its Development

The Company aims to proceed with its business activities in accordance with its corporate philosophy: “We contribute to the health and happiness of people around the world through pursuit of excellence in life science in general and our research and experience in microorganisms in particular.” To achieve this, the Company believes that it is important to implement management that places emphasis on strengthening and enhancing internal control functions as a company that is widely trusted by society.
Based on this perspective, the Company has made the resolutions listed below on basic policies regarding building internal control systems after reconfirming the current situation at the Company in relation to the development of internal control systems.
The contents of the resolutions will be revised as appropriate in line with revisions to laws and environmental changes inside and outside the Company, aiming to further strengthen and enhance internal control systems.

• 1.Systems to ensure that the performance of duties by directors and employees complies with laws and articles of incorporation
• 2.Systems regarding preservation and management of information related to the performance of duties by directors
• 3.Rules and other systems regarding the management of risks for losses
• 4.Systems to ensure that the performance of duties by directors is efficient
• 5.Systems to ensure that operations at the corporate group consisting of the Company and subsidiaries are appropriate
• 6.Matters regarding employees who support the duties of Audit & Supervisory Board members in cases in which Audit & Supervisory Board members make a request to assign such employees
• 7.Matters regarding the independence of employees who support the duties of Audit & Supervisory Board members, who are mentioned in the previous item, from directors, and systems to ensure the effectiveness of instructions given to these employees by Audit & Supervisory Board members
• 8.Systems for directors and employees to provide reports to Audit & Supervisory Board members and other systems regarding reports provided to Audit & Supervisory Board members
• 9.Systems to ensure that reporting parties do not receive unfair treatment as a result of such reports
• 10.Other systems to ensure that audit operations of Audit & Supervisory Board members are carried out effectivel