Compliance Promotion Framework
Shofu promotes compliance-oriented management across all business activities, upholding corporate ethics and strict adherence to laws and regulations as fundamental principles.
We have established an Ethics Committee, chaired by the President and CEO, which deliberates and determines measures to ensure compliance, thereby enhancing the effectiveness of compliance across the Shofu Group.
Internal Control
Shofu not only complies with the Companies Act and the Financial Instruments and Exchange Act but also works to enhance the effectiveness of the internal control system of the Company and the Group. To this end, we have established basic policies for our internal control system and implemented measures for evaluating internal control over financial reporting. As for the evaluation of internal control over financial reporting, we have submitted an internal control report that concludes that our internal controls are effective and we received confirmation from our auditing firm that the report is appropriate.
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Japanese version only.
Internal Audits
The Internal Audit Department, under the direction of the President & COO, conducts audits in coordination with the Audit & Supervisory Board and the Accounting Auditor, according to our internal audit plan. Specifically, audits cover the appropriateness of the structure and operation of the Group's internal control system, the effectiveness and efficiency of business operations, the reliability of financial reporting, the safeguarding and effective use of assets, the state of risk management, and compliance with laws, regulations, and internal rules.
We communicate and consult as needed with the Audit & Supervisory Board and the Accounting Auditor regarding the results of internal audits, and, through this coordination, we advance initiatives to enhance the effectiveness of our audit function.
SHOFU Group Code of Conduct
The Company has established the Shofu Group Code of Conduct as a set of standards to ensure that every employee complies with laws, regulations, and internal rules, and acts in accordance with shared ethical values.
Based on our corporate philosophy, the Shofu Group Code of Conduct defines the standards and expected behaviors across all aspects of our business activities. The Company ensures that all Group employees are fully informed of and adhere to these standards.
Basic Behavioral Principles
- We provide safe, secure, and high-quality products and services, and provide appropriate information on products, dental care, etc., in order to earn the strong trust and satisfaction of dental professionals and patients.
- We correctly understand and comply with the laws and regulations of the countries and regions where we operate, as well as social norms, industry rules, and internal regulations, and conduct business activities in a fair and honest manner.
- We support international norms on human rights, and respect the human rights of all people affected by the Shofu Group's business activities.
- We maintain equal and fair business relationships with our business partners and other related parties, and we do not bribe public officials or make illegal political contributions, nor do we engage in acts such as providing benefits or giving gifts that defy common sense.
- We promote business activities that are considerate of the global environment in order to fulfill our social responsibility to the environment and to realize a sustainable society.
- We strive for solidarity and cooperation with local communities, and contribute to their development as a member of society.
- We care about the health and safety of our employees, and we foster an organizational culture and work environment that respects diversity and where everyone can work with enthusiasm.
- We recognize the information assets held by the Shofu Group as important assets, and promote information security measures to protect these assets against threats.
- We accurately disclose the Shofu Group's corporate information, including financial information, in a timely manner, and fulfill our accountability to stakeholders.
- We take a resolute stance and cut off all relationships with anti-social forces and organizations that threaten public order or safety.
Internal Reporting System
In addition to preventing legal violations and misconduct within the Shofu Group, we have established an internal reporting system to enable the early detection of risks and prompt corrective action. We strictly prohibit any disadvantageous treatment of whistleblowers and manage information carefully to ensure that their identities remain confidential.
Provision of Fair and Equitable Opportunities and Selection of Business Partners
Our business activities are supported by trust-based relationships with a variety of business partners. To build and maintain these relationships, we provide fair opportunities for competition. When selecting business partners, we conduct a fair evaluation and selection process that takes a comprehensive view of factors such as quality, price, supply capacity, delivery schedules, reputation, and environmental responsibility.
Guidelines on Transparency in Relations with Medical Institutions
To fulfill our role as a member of the medical device industry, Shofu conducts business in collaboration with academic societies, hospitals, dentists, and other facilities and medical institutions engaged in healthcare research and clinical trials.
While such collaboration is essential to our business, maintaining public trust requires that our relationships with medical institutions be transparent.
To enhance transparency and strengthen public trust, Shofu has established guidelines on transparency in relations with medical institutions, based on the Transparency Guidelines for the Medical Device Industry and its Relationships with Medical Institutions and Other Organizations issued by The Japan Federation of Medical Devices Associations, of which we are a member. Information on our relationships with medical institutions is disclosed annually on our website.
Severing Ties with Antisocial Forces
Shofu declares that it will sever all ties with antisocial forces that threaten public order and safety. To achieve this, the Company has established an internal framework to prevent such relationships and works in close coordination with external specialist organizations, including local police departments and centers promoting the elimination of organized crime.
Prevention of Bribery and Corruption
In light of the globalization of our business and the growing global focus on bribery and corruption in recent years, the Shofu Group recognizes that further strengthening and enhancing our anti-bribery framework is a key priority.
The Group has long prohibited bribery and corruption under the Shofu Group Code of Conduct and related policies. To reinforce these efforts, we have now established and publicly issued the Shofu Group Anti-Bribery Policy, which articulates our principles and stance to stakeholders and seeks their understanding and cooperation.
In line with this policy, we are committed to enhancing our internal control framework, promoting awareness through training and communication, and advancing anti-bribery initiatives throughout the Group.
