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, help improve social life and respond to medical needs, including the improvement of medical economy, as well as generate a 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 Business Conduct Guidelines aim 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.

  • We at Chugai will dedicate 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 are anticipated by the global community. More specifically, we aim to provide innovative, high-value-added products and services that treat patient and consumer illnesses worldwide, help improve social life, and respond to medical needs, including the improvement of medical economy, through research & development, production, marketing, and post-production & 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-production & marketing surveillance, and all efforts will be put towards improving our current system.
  • We will strictly adhere to all relevant laws and regulations and internal rules and handle data appropriately based on scientific validity in the experiments and research for new drug applications and all other activities throughout the product life cycle.
  • 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).
  • 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.
2. Strict Adherence to the Law

In all our business activities, we will strictly adhere to all laws and their underlying principles.

  • 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, the Commercial Code, the Companies Act, the Pharmaceuticals and Medical Devices Act, the Antimonopoly Act, the Penal Code and labor acts, and moreover, we act in accordance with the intended purpose of these laws.
  • Illegal acts or unethical behaviors that would take advantage of loopholes taken in pursuit of short-term profits are strictly prohibited. Such acts and behaviors are contrary to our Core Values.
  • To prevent violation, when in doubt about business conduct and practices, we will check all relevant laws and industrial regulations before acting.
  • All of our business activities are related in some way to laws or industrial regulations, and at the same time, evaluated based on social ethical views. We not only comply with such laws and regulations and their intended purposes, but also decide and act from the viewpoint of compliance, which consists of social common sense, conventional wisdom, high ethical values, and fairness.
  • Global business activities are carried out in accordance with the laws and regulations of respective countries and regions, respecting human rights and other international norms. We respect local culture and customs, but firmly reject bad practices.
3. Respect for Human Rights

We will respect human rights in every aspect of our business activities.

  • 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, sexual orientation, gender identity, age, nationality, national origin, religion, beliefs or ideas, education, disability, illness, social status, family status or birth status.
  • Sexual harassment, abuse of authority, bullying 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. We will never tolerate such actions.
  • We value employee diversity. We will realize a workplace where all employees can perform at their full potential by creating a free, vigorous and open environment in which members respect each other’s personalities and values, and personal growth and self-realization through work are actively supported.
  • For the safety and health of the workplace, we are committed to preventing occupational injuries 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, customers and other business partners.

  • We at Chugai will always engage 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 the exchanges with healthcare professionals and medical institutions or executing transactions with business partners (wholesalers, customers and suppliers etc.), we will comply with the Antimonopoly Act, the Truth-in-advertising Act and other laws, the Fair Competition Code, and the Code of Practice. 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 industrial regulations; we will obtain a good understanding of their intended purpose, and act with common sense based on socially accepted standards and values.
  • In dealing with public officials and deemed 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 and other business partners must be fair and appropriate. In executing transactions with our business 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 global business activities, we will comply with not only domestic laws and regulations, but also those of the relevant country and those applied extraterritorially, and conduct business in a fair and transparent manner with due attention given to ethical standards.
  • We eliminate corruption such as bribery.
  • It is imperative that the Company avoids situations that may conflict between its 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, and where there is a conflict of interests, the Company’s profits must be prioritized. Furthermore, dual employment and side businesses with business partners or competitors whilst employed at Chugai are not 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.

  • As we have been consigned to managing our shareholders’ capital, we are responsible for the optimal and appropriate management and use of the Company’s assets to raise profits, while continuously seeking higher productivity.
  • 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. We will not engage in the making of false entries or manipulation of the accounting books, records, accounts, etc.
  • We will effectively use the Company’s capital and assets only for the management of the Company’s business and not for personal benefit or for third parties.
  • All expenditures for entertainment and donations must be transparent and explainable to the public.
  • Business plans and other corporate information in areas such as research & development, production and sales are important corporate assets. We have a duty to keep such information confidential and not leak it to any third party, both during and after employment. We will not use such information for insider trading or any purpose other than the intended purpose.
  • We are aware of the importance of intellectual property and will work for the acquisition and protection of intellectual property rights of the Company group. Moreover, we respect the third party's intellectual property rights.
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.

  • One of our important responsibilities is to accurately and without distortion convey information on the status of our corporate activities to shareholders, investors and other stakeholders of the Company.
  • 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.
  • This is because information concerning research & development, financial matters, sales and other business activities often has a significant impact on stakeholders.
  • 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.
  • 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.
  • It is necessary for the proper use of pharmaceuticals and improvement of treatment techniques to properly work for collaboration with healthcare professionals and medical institutions. We will work to increase the transparency of our involvement in the collaborative activities, and properly disclose related costs for the purpose of increased social recognition and trust.
  • 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.
  • Furthermore, 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. We will never engage in any insider trading in violation of this provision.
  • 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 Pharmaceuticals and Medical Devices 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.

  • 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.
Action 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 believe the supreme value to the future of “one and only Earth” and, therefore, we continue our efforts to reconcile our business activity with nature and environments.

  • Protection of natural environment and biodiversity is a common theme for all human beings. We at Chugai proactively address the matter of minimizing the negative impact on the global environment as a prerequisite for sustainable corporate growth.
  • We promote continual improvement of our environmental protection activities by setting environmental protection goals and action plans based on the Environmental Management System.
  • We undertake initiatives for the control of global warming and other climate changes, resource conservation, waste reduction and prevention of environmental pollutions at every stage of research & development, production, transportation, marketing and disposal of our products according to the environmental protection action plans.
  • We comply with all legislation and regulations, agreements with the parties concerned, internal rules and voluntary standards relating to environmental protection.
  • We work for the deepening of our knowledge and understanding about environmental protection through regular education and training.
  • We actively disclose information on our environmental protection activities internally and externally and strive to communicate with the stakeholders.
9. Relations with Governmental and Administrative Bodies

We will maintain fair and transparent relations with policymakers and administrative bodies.

  • 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). Therefore, we will not engage in any such activity.
  • 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 or any other individuals in positions of authority are explained in detail in the National Public Service Ethics Act and the National Public Service Ethics Code. We will act in accordance with and in complete understanding of these regulations.
  • Collusion with administrative bodies and corruption significantly harm the soundness of the economy and society. We will not engage in such unfair or non-transparent relations.
  • In relations with foreign public officials, we will comply with not only domestic laws and regulations, but also those of the relevant country and those applied extraterritorially, and will not provide, offer, or promise to provide financial or other benefits.
  • In the midst of increasing awareness regarding proper relations of companies with policy makers and administrative bodies inside and outside Japan, we will always maintain fair and transparent relations that can be explained to society.
10. Relations with External Bodies

We will maintain fair and transparent relations, within reason, with external bodies.

  • In addition to our business partners 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 will 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 will 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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