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Business Conduct Guidelines

In order for Chugai and its group companies to fulfill their social responsibilities, be trusted and selected by society by their faithful conduct, and make continual contributions to society,the Chugai BCG has been established as a set of standards governing both corporate and individual employee behavior based on the Core Value of the Chugai Mission Statement.

Chugai Business Conduct Guidelines (Chugai BCG)


The mission of the Chugai Group is to “dedicate itself to adding exceptional value through the creation of innovative medical products and services for the benefit of the medical community and human health around the world”. 

In accordance with this mission, the Chugai Group will strive to conduct our business operations based on the Core Values of the Mission Statement.

We will strictly adhere to the law and conduct our business in a sound and ethical manner which is respected by the global community.

We will also establish standards within the company to promote business activities in line with the mission and fulfill our social responsibilities as a member of society through the constant implementation of these standards by each individual employee within the Group.

The social responsibilities mentioned above are to provide the medical community around the world with innovative, high-value-added products and services that treat patient and consumer illnesses, improve quality of life and reduce medical costs, as well as generate reasonable profit. This is essential for the Group to make a long-term contribution to society.

By acting as an appropriate business guide for every employee within the Group, the Chugai BCG aims to ensure that these social responsibilities are fulfilled.

Every member of the Chugai Group must act in accordance with these guidelines.

Chugai Business Conduct Guidelines

  1. Responsibility to Patients and Consumers
    We will always put the patient and the consumer first, and provide high-quality products and services of superior safety and efficacy.
    Detailed explanation
    • We at Chugai have dedicated ourselves to contributing to human health and the medical community around the world through providing innovative products and services backed by science and ethics that global community anticipates. We aim to treat patient and consumer illnesses worldwide, improving quality of life whilst reducing medical costs through research and development, production, marketing and post-marketing surveillance.
    • To ensure constant high quality, our products must undergo rigorous testing for efficacy and safety. The most advanced technology is employed at every stage of research & development, production and distribution. We constantly endeavour to maintain and improve the level of technology in order to confidently produce and market our products.
    • To engage in precision production, marketing and the correct supply of information concerning products, it is essential to employ a high-level quality assurance system, acceptable by global standards, at each stage of research & development, production, marketing and post-marketing surveillance and all efforts will be put towards improving our current system.
    • We must respect the human rights of all trial subjects in our clinical trials, paying attention to safety whilst maintaining a strict scientific exactitude.
    • To promote the correct usage of our pharmaceuticals, we will promptly provide, collect, evaluate and transmit accurate and scientifically backed information regarding product quality, efficacy and safety both in Japan and overseas.
    • If any issue involving the quality of our products arises, regardless of the cause, we will give the highest priority to the safety of patients and consumers, and properly disclose relevant information and take necessary measures including recalls in a prompt manner.
    • In conducting drug discovery research using specimen of human-origin, we will respect the dignity of life and human rights through, among other means, the establishment and operation of a fair and independent Ethics Review Committee.
    • In conducting experiments involving animals, we will review, in advance, the possibility of alternative valuation methods without the use of animals (Replace). If there is no other alternative but to use animals, we will only use the minimum number of animals necessary (Reduce), ensure that animals suffer as little as possible, and create an environment that takes animal welfare into consideration (Refine).
  2. Strict Adherence to the Law
    In all our business activities, we will strictly adhere to all laws and their underlying principles.
    Detailed explanation
    • Laws express the fundamental social regulations. When all citizens comply with the law, social order is maintained. Therefore, we will comply with all laws, including the Civil Code, Commercial Code, Companies Act, Pharmaceutical Affairs Act, Antimonopoly Act, Penal Code and labor acts. We will not allow any unethical behavior that would take advantage of loopholes thus being detrimental to the intended purpose of these laws.
    • Illegal or unethical action taken in pursuit of short-term profits is strictly prohibited. We do not recognize such behavior as representing "company spirit".
    • To prevent violation, when in doubt about business conduct and practices, we will check all relevant laws and regulations before acting.
    • All our business activities are related in some way to laws or industrial regulations. Therefore, it is necessary to take into consideration any laws and regulations mentioned in other sections as well as in this section.
    • Overseas business activities are carried out in accordance with international as well as local regulations with due respect given to the local culture and customs. However, a firm stand will be taken against wrongful customs.
  3. Respect for Human Rights
    We will respect human rights in every aspect of our business activities.
    Detailed explanation
    • Everyone, regardless of country or region of birth, has the right to live free and secure. This is clearly stated in the Universal Declaration of Human Rights. These fundamental human rights are also protected by the Japanese Constitution.
    • Therefore, we will respect individual dignity and human rights both inside and outside the company, and will not tolerate any discrimination based on race, ethnic background, sex, age, national origin, religion, beliefs or ideas, education, disability, illness, social status, family status or birth status.
    • Sexual harassment, abuse of authority, bulling or any form of harassment in the workplace not only harms an individual's personality and individuality, but also constitutes an infringement upon the right to work in a comfortable work environment and prevents a person from demonstrating his/her ability fully. Such actions will never be tolerated.
    • We will appreciate each other's expertise and ability, and realize a workplace where all individuals can perform at their full potential through mutual respect of personalities and values, and will create a free, vigorous and open work environment in which personal growth and self-realization through work can be actively supported.
    • For the safety and health of the workplace, we are committed to preventing labor accidents and promoting the maintenance of health.
    • We will always keep in mind the importance of protecting personal information and will manage all information relating to the privacy of our employees and personal information obtained through business activities in a strict manner.
    • Furthermore, we will respect the cultures and values in different areas and countries of the world and promote our business in the spirit of equality and co-existence.
  4. Fair Trade
    We will engage in fair and transparent transactions with medical institutions and organizations, suppliers and customers.
    Detailed explanation
    • We at Chugai are committed to always engaging in fair and transparent activities.
    • In order to promote economic growth and protect consumers through the promotion of fair and free competition, the Antimonopoly Act prohibits any act which tends to unreasonably restrain trade or impede fair competition.
    • In providing information to healthcare professionals or executing transactions with business partners (wholesalers, customers and suppliers etc.), we will comply with the Antimonopoly Act, the Truth-in-advertising Act, the Promotion Code, the Fair Competition Code, and other laws and regulations. We will also conduct our business in relation to our competitors in a fair manner in accordance with relevant laws and regulations.
    • Furthermore, we will not merely focus on compliance with these laws and regulations and industry standards, but act based on common sense thorough an understanding of the spirit of such regulations to avoid any misunderstanding by the public when we conduct any activity that is not stipulated in these regulations.
    • In dealing with public officials, we will take utmost care not to violate the National Public Service Ethics Act, ethics regulations of local governments, and internal rules of medical institutions.
    • When entering into a research agreement with a medical institution, we will not engage in any act that is deemed to be a solicitation in the guise of research, nor will we contribute to any endowment with an expectation of some return.
    • The criteria for the selection of suppliers must be fair and appropriate. In executing transactions with our suppliers, whom we consider to be our partners, we prohibit the individual involved in such transactions from making improper demands using our dominant position, or pursuing any personal profit.
    • We will execute transactions within the Group at an arm's-length price.
    • In conducting business overseas, we will comply with the laws and regulations and ethical standards of the country and conduct business in a fair and transparent manner.
    • It is imperative that the Company avoids situations that may conflict between company profits and the interests of its board members and employees. For example, as a general rule, trade with the family businesses of board members or employees is to be avoided. However, in situations where such trade is unavoidable, sufficient caution must be taken to prevent unfair trading practices. Furthermore, dual employment and side businesses with business partners or competitors whilst employed at Chugai is not be permitted without the Company's permission.
  5. Management of Corporate Assets
    We will achieve our management objectives through the optimal and appropriate management and use of corporate assets.
    Detailed explanation
    • As we have been consigned to managing our shareholders' capital, we are responsible for the optimal and appropriate management and use of company assets to raise profits.
    • All capital and assets must be recorded correctly and accurately in the Company's official accounting books based on the generally accepted accounting principles and standards. False records or manipulation of the accounting books, records, accounts, etc. is strictly prohibited.
    • We will always pursue the productivity of management resources, and with the profit brought by them, will pay proper compensation to our employees, pay taxes, and distribute dividends. Furthermore, we will make reinvestments, develop human resources, and engage in social action programs.
    • Improper use of the Company's funds and assets for personal benefit or for third parties is prohibited.
    • All expenditures for entertainment and donations must be transparent and explainable to the public.
    • Corporate information such as intellectual property, business plans and sales information is an important corporate asset. In accordance with the provisions of "Rules for Handling Corporate Information" and other relevant regulations, we have a duty to keep such information confidential and not leak it to any third party, both during and after employment. Use of such information for insider trading or any purpose other than the intended purpose is not permitted.
  6. Disclosure of Information
    We will actively and fairly disclose our corporate information in accordance with both legal requirements and the principles of social justice.
    Detailed explanation
    • One of our important responsibilities is to accurately and without distortion convey information on the status of our corporate activities to investors and other stakeholders of the Company.
    • This is because information concerning research and development, financial matters, sales and other business activities often has a significant impact on stakeholders.
    • Corporate information that might affect company profits is needed by investors to make investment decisions. Therefore, we will disclose such information in a timely and appropriate manner.
    • Furthermore, corporate transparency will be maintained even if information is disadvantageous to the Company. From the viewpoint of enhancing confidence in the Company, the information will not be covered up.
    • Audit & supervisory board members, external board members, auditing firms and shareholder checks each play a material role in ensuring the rationality and legality of corporate behaviour, as management and employee involvement alone is not enough. Moreover, the disclosure of information has important implications in that it allows a company to be examined by both its stakeholders and society.
    • We also actively disclose information concerning our interactions with society, including information on our management philosophies and policies, environmental protection activities and social action programs.
    • Companies do not disclose all important business information. Therefore, the Financial Instruments and Exchange Act prohibits corporate insiders associated with the information and people who receive the important information of other companies from selling and buying the shares of the company until such important information is publicly announced. Any act in violation of this provision will be deemed to be insider trading and thus strictly prohibited.
    • We provide healthcare consumers and healthcare professionals with accurate and appropriate information essential to the selection and use of pharmaceuticals. The Truth-in-advertising Act , the Pharmaceutical Affairs Act, and the Fair Competition Code govern to prevent the improper representation and advertising of pharmaceuticals. The information that we provide conforms to these regulations.
  7. Social Contribution
    We will remain aware of our responsibility as a good corporate citizen and actively continue with our social action programs.
    Detailed explanation
    • Social action programs refer to voluntary involvement in social issues as a member of society by introducing resources and expertise as contributions toward the resolution of these issues without seeking direct compensation.
    • We will remain aware of our role and responsibility as a good corporate citizen and actively continue with our social action programs as we maintain close ties with the community and society. We will pursue our social action programs primarily in the fields of "healthcare," "social welfare," "education," "local community," and "environmental protection."
    • In addition, we will encourage and support the social action programs in which our employees participate.

    Basic policy on social action programs

    • The Company and all its employees will be voluntarily involved in social activities to contribute to the creation of a better society.
    • We will positively promote social activities, utilizing the knowledge, know-how, and network we have acquired over many years as a pharmaceutical company working for the benefit of people's lives.
    • We will be involved in social activities with a long-term perspective and emphasize the continuity of such activities.
    • We will exercise initiative and act uniquely.
  8. Protection of the Global Environment
    We will do our best to protect the environment by conducting all our business activities in accordance with the Chugai Environmental and Safety Charter.
    Detailed explanation

    Chugai Environmental and Safety Charter

    The Chugai Group aims to add exceptional value for the benefit of the medical community and human health around the world by creating innovative medical products and services. The Group strives to conduct its business activities with full attention to harmony with the natural environment, based on the principle of preserving our precious planet, and to occupational safety.

    • We will, as a corporation associated with human life acting for the benefit of the medical community and human health around the world, always promote environmental protection, conducting all areas of our business activities in due consideration of the global environment and the impact on the local community.
    • We will establish environmental policies and promote environmental protection activities in accordance with the Chugai Environmental Management System (CEMS). Through CEMS, we will establish environmental policies, purposes and targets for each office and affiliated company, and by utilizing the PDCA Cycle, promote continuous improvement of our environmental protection activities.
    • We will comply with all laws and regulations relating to environmental protection as well as all requirements and voluntary management standards agreed upon by the Chugai Group.
    • Furthermore, we will disclose information relating to our environment protection activities (including policies, targets, and results) in a proper manner.
    • We will promote the "prevention of global warming," "resource conservation and waste reduction," and "prevention of environmental pollution" in a positive manner in each stage of research and development, manufacturing, transportation, sale and disposal of our products.
    • We will also enhance dialogues with the local community and strive to cooperate with the local community in promoting environmental protection activities.
  9. Relations with Governmental and Administrative Bodies
    We will maintain fair and transparent relations with policymakers and administrative bodies.
    Detailed explanation
    • As a citizen and member of an industry associated with human life, it is both our duty and right to speak out and take action to promote public administration and legislation conducive to the maintenance and improvement of medical care and human health.
    • As a company with a mission to develop high-quality products of superior safety and efficacy, we shall maintain smooth partnerships with relevant administrative bodies when conducting our business.
    • Corporations must be extremely careful not to provide financial or other benefits to politicians, public officials or any other individuals in positions of authority in the pursuit of monetary gain or smooth business operations as this will attract inappropriate transactions, is unfair, and above all, a crime (bribery).
    • We will comply with laws and regulations, and legally and fairly provide donations and contributions, irrespective of the pretext, to political parties, organizations, etc.
    • Regulations regarding contact with public officials are explained in detail in the National Public Service Ethics Act and the National Public Service Ethics Code. We must act in accordance with and in complete understanding of these regulations.
    • Companies shall not have unfair or non-transparent relations with administrative bodies. Collusion and corruption significantly harm the soundness of the economy and society.
    • We will also not provide, offer, or promise to provide financial or other benefits to foreign public officials in violation of laws and regulations of their county or the Unfair Competition Prevention Law of Japan.
    • In the midst of increasing awareness of proper relations between companies and policy makers and administrative bodies, we shall always maintain fair and transparent relations with them that can be explained to society.
  10. Relations with External Bodies
    We will maintain fair and transparent relations, within reason, with external bodies.
    Detailed explanation
    • In addition to our suppliers and customers, we have contact with academic societies, NGO/NPO, and other external bodies when conducting our business. In cooperating with or supporting these bodies, we will maintain transparency in order to avoid any misunderstandings by the general public.
    • We provide contributions for the purpose of the advancement of scientific technology that serves as a foundation for the pharmaceutical industry, improvement of health and welfare of people, and the development of and support for society.
    • Contributions to academic societies are in principle made via industry groups. However, when making individual contributions, industry and internal regulations are to be followed.
    • When making contact with staff from a public organization, we must thoroughly examine and be careful not to infringe upon their own organization's regulations.
    • There are anti-social forces among external bodies. We will not provide financial or any other benefits to these forces, and if they make such demands on us, we will resolutely refuse and confront them. We will also completely eliminate any connection with all such anti-social forces and groups that endanger the order and safety of our civil society.
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