Mission Statement and Chugai Group Code of Conduct

The Chugai Group upholds its Mission Statement – which consists of its mission, its Core Values and its Envisioned Future – in order to meet a diverse array of stakeholder expectations as it realizes its corporate responsibility to society. It is on the basis of this Mission Statement that the Chugai Group conducts its business operations.

In order for the Chugai Group to fulfill its Mission Statement, be trusted and selected by society for its faithful conduct, and make sustained contributions to society, the Chugai Group Code of Conduct(CCC) has been established as a set of standards governing both corporate and individual employee behavior based on the Core Values of the Chugai Mission Statement.

Mission Statement

Mission

Dedicate ourselves to adding value by creating and delivering innovative products and services for the medical community and human health around the world


Core Values

1. Patient Centric
Make each patient’s wellbeing our highest priority

2. Pioneering Spirit
Pursue innovation by improving ourselves and thinking differently

3. Integrity
Maintain the highest standards in all we do to create shared value with society


Envisioned Future

Become a top innovator for advanced and sustainable patient-centric healthcare, powered by our unique strength in science and technology and the alliance with Roche

Chugai Group Code of Conduct

Preface

The Mission set forth in the Mission Statement of the Chugai Group is to “Dedicate ourselves to adding value by creating and delivering innovative products and services for the medical community and human health around the world”.

The Core Values are our most important standards of judgment that will be applied while engaging in activities that support our realization of the Mission and we will operate our business in accordance with them. The Chugai Group will contribute to the realization of a sustainable society by solving social issues through the creation of innovation and efforts toward respect for the environment, human rights, and more.

By acting as a guide for appropriate business conduct for every employee within the Chugai Group, the Chugai Group Code of Conduct aims to ensure that our business operations are implemented.

Every member of the Chugai Group must act and make judgments in accordance with this code.


Chugai Group Code of Conduct

1. Responsibility to Patients

We will make each patient’s wellbeing our highest priority, and provide innovative, high-quality products and services with superior safety and efficacy.

  • We at Chugai will dedicate ourselves to contributing to the medical community and human health around the world through creating and delivering 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 the illnesses of patients worldwide, help improve quality of life, and respond to medical needs, including the improvement of the medical economy, through research & development, production, marketing, post-production & marketing surveillance, and other activities.
  • To ensure consistent 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 endeavor to maintain and improve the level of our technology in order to ensure stable production and marketing of our products.
  • In order to appropriately manufacture, market, and provide information for these products, it is essential to maintain a global top-level quality management system at each stage of research & development, production, marketing, and post-production & marketing surveillance, and all efforts will be put for continuous improvements.
  • It is also essential to maintain the quality assurance processes in the supply chain. To protect the health and safety of patients, we will take appropriate measures to prevent any occurrence of counterfeit / falsified medical products.
  • We will strictly adhere to all relevant laws, 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 research using specimens and information of human origin, we will respect the dignity of life and human rights through, among other means, obtaining informed consent, protecting personal information, and establishing and operating a fair and independent ethical review committee.
  • In conducting experiments involving animals, we will review, in advance, the possibility of alternative evaluation 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 while 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.
  • If it is suspected that there is an adverse event caused by our products, we will promptly report the matter to health authorities in each affected country in accordance with laws, regulations, and internal operating procedures, as well as taking safety assurance measures as necessary.
  • 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, by properly disclosing relevant information and taking necessary measures, including recalls, in a prompt manner.
2. Pursuing Innovation

With deep understanding and a broad perspective, we will focus our diverse talents on the continuous pursuit of innovation.

  • We pursue innovation with unconventional thinking in order to contribute to the medical community and human health around the world as well as to provide new solutions to various social issues, making the most of our unique strengths in science and technology.
  • To this end, we will strive to develop ourselves and become a group of autonomous experts who can demonstrate strong individual leadership.
  • By promoting diversity and inclusion, we maximize the abilities of our diverse human resources and endeavor to create an open workplace where teamwork is valued.
  • In order for us to continuously pursue innovation, it is important that each of us works energetically while staying in good health. We will strive to maintain and promote employee and organizational health through initiatives for work style reforms and Health and Productivity Management.
3. Acting with Integrity

We will strictly adhere to all laws and regulations in every situation, and maintain the highest standards of integrity and ethicality.

  • Laws express the fundamental social regulations. When all citizens comply with the law, social order is maintained. Therefore, we will comply with all applicable laws and 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 violations, when in doubt about business conduct and practices, we will check all applicable 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.
  • In interactions with healthcare professionals and medical institutions or while executing transactions with business partners such as wholesalers, we will comply with the applicable laws and regulations such as the Competition Law, as well as the pharmaceutical manufacturers’ associations code of practice in the relevant country, and always conduct such activities in a fair and transparent manner. We will also conduct our business in relation to our competitors in a fair manner in accordance with applicable laws and regulations.
  • Furthermore, we will not merely focus on compliance with these laws and industrial regulations literally; we will obtain a good understanding of their intended purpose, follow the spirit of such laws and regulations, and act with common sense based on socially accepted standards and values.
  • In dealing with public officials and deemed public officials, we will take the utmost care not to violate ethical laws and regulations concerning public officials in the relevant country, 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.
  • We will execute transactions within the Group at an arm’s-length price (price between independent companies).
  • We will not tolerate corruption such as bribery. We will not provide, promise, request, or receive any inappropriate benefits for the purpose of obtaining or maintaining business, whether directly or indirectly and with public officials or non-public officials. In addition, we will appropriately offer and receive gifts, food and drink, or anything else of tangible or intangible value to or from a third party in accordance with each country’s applicable laws and regulations and pharmaceutical manufacturers’ associations codes of practice.
  • 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. We will also comply with applicable ethical standards.
  • It is imperative that the Company avoids situations that may create a 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 actions must be taken to prevent unfair trading practices and, where there is a conflict of interests, the decision that is in the best interest of the Company must be selected. Furthermore, dual employment and side businesses with business partners, competitors or as an individual contractor / consultant while employed at Chugai are not permitted without the Company’s permission.
4. 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 freely and securely. This is clearly stated in the Universal Declaration of Human Rights.
  • 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, birth status, or any other motive.
  • 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.
  • We respect international norms relating to human rights, including prohibition of forced labor and child labor, and comply with labor-related laws and regulations of each country to maintain proper labor standards.
  • We respect fundamental labor rights, including freedom of association and the right to organize and to bargain.
  • Sexual harassment, abuse of authority, bullying, or any form of harassment in the workplace not only harms an individual’s personality and dignity, 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 individuality and values, and personal growth and self-realization through work are actively supported.
  • We will treat all people, both inside and outside the Company, in a fair and equal manner. We will also ensure equal opportunities in hiring, internal training, and promotion. In addition, we will ensure that there is no unreasonable disparity between employees regardless of employment status.
  • For the safety and health of the workplace, we are committed to the prevention of occupational injuries and the maintenance and promotion of health through efforts for Health and Productivity Management.
  • We will always firmly keep in mind the importance of protecting personal information and will properly handle and strictly manage all information relating to the privacy of our employees and personal information obtained through business activities in accordance with applicable data protection laws and regulations and internal policies.
5. Appropriate Partnerships

We will maintain appropriate and transparent relations with all of our stakeholders through ongoing discussion. We will work together to realize mutual development and find solutions to social issues. We also expect our business partners to maintain the highest standards of integrity and ethicality.

  • We will always maintain appropriate and transparent relations with all of our stakeholders.
  • We expect all areas of our supply chain to comply with applicable laws and regulations, ensure safety, and protect the environment. We will not tolerate human rights violations, corruption, or bribery in any form. We will assess our business partners’ business activities and request improvements, if necessary, to build a responsible supply chain.
  • The criteria for the selection of 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.
  • As a citizen of society and member of an industry associated with human life, we will promote constructive dialogue with public administrative and legislative bodies toward the maintenance and improvement of medical care and human health.
  • In conducting company activities, it is necessary to maintain smooth cooperation with relevant administrative bodies. Providing financial or other benefits to politicians, public officials or any other individuals in positions of authority in the pursuit of monetary gain or operational expediency is considered an inappropriate transaction and it is unfair and, above all, a crime (bribery). We will not engage in any such act.
  • We will comply with laws and regulations, and legally and fairly provide donations and contributions, irrespective of the pretext, to political parties, organizations, etc.
  • Collusion and corruption involving parties such as politicians and administrative bodies significantly harms the soundness of the economy and society. We will always act in compliance with all ethical laws and regulations concerning public officials in relevant countries to maintain fair, transparent and accountable relations.
  • We have contact with non-governmental organizations / non-profitable organizations (NGO / NPOs) and other external bodies when conducting our business. In cooperating with or supporting these bodies, we will maintain fairness and transparency in order to avoid any misperceptions by the general public.
  • We will make donations 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 solving social issues.
  • When making contact with staff from a public organization, we will be careful not to infringe upon the organization’s regulations.
  • In cooperating with patient organizations, we will ensure a high level of ethics, morality, and transparency to respect their independence. We will also strive to ensure that there is full and clear mutual understanding of the purpose and content of such cooperation.
  • 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.
6. 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 strengthen the revenue base on a sustainable basis, while continuously seeking higher productivity.
  • All transactions that occur in our business activities must be recorded correctly and accurately in the Company’s official accounting books based on the generally accepted accounting principles and standards, as well as each country’s applicable laws and other requirements. We will provide evidence of all transactions, including vouchers, and will not engage in manipulation or making false entries.
  • All expenditures for entertainment and donations must be transparent and explainable to the public.
  • In addition, we will continuously review our internal controls to ensure they are functioning properly and that we have an appropriate and accurate understanding of our financial situation.
  • Intellectual property rights are important assets to ensure competitive advantages in our business. We are committed to ensuring proper acquisition and protection of intellectual property rights in the Company group. Moreover, we will respect the third party’s intellectual property rights.
  • 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 strictly control the degree to which such information should be shared.
  • In order to ensure information reliability, we create accurate and comprehensive records made in the course of business and store them appropriately for a specified period of time.
  • We will effectively use the Company’s capital and assets and information obtained in the course of duties strictly for the Company’s business activities and not for personal benefit or the benefit of third parties. We also have a duty not to leak the confidential information to any third party, both during and after employment.
  • We must strictly refrain from recklessly transmitting company information which may cause serious damage to the Company in conversations with third parties or on personal social media, regardless of the level of confidentiality of such information.
7. Disclosure of Information

We will actively and fairly disclose corporate information.

  • 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, appropriate, and unbiased manner.
  • This is because information concerning research & development, financial matters, sales and other business activities often has a significant impact on stakeholders.
  • Furthermore, in order to maintain corporate transparency, we will not suppress any information even if it is disadvantageous to the Company.
  • We also actively disclose information concerning our interactions with society, including information on our management philosophies and policies, environmental protection activities and social contribution programs.
  • 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 behavior, as management and employee involvement alone is not enough. Moreover, fair disclosure of information has important implications in that it allows a company to be examined by both its stakeholders and society.
  • We will listen to society (stakeholders) and build mutual trust through constructive conversation and interactive communications.
  • We will provide accurate and appropriate information on our products. Each country’s applicable laws and regulations and pharmaceutical manufacturers’ associations codes of practice regulate the labeling and advertising of pharmaceuticals and related products. The information that we provide conforms to these regulations.
  • 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.
  • To increase the transparency of clinical studies and ensure public confidence, we will adhere to laws, regulations, and voluntary industry codes of each country, and will disclose clinical study information and share clinical study data with researchers in an appropriate manner.
  • Each country’s securities law 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 (insider trading) until such important information is publicly announced. We will never engage in any action in violation of this provision.
8. Social Contribution

As a good corporate citizen, we will actively promote our social contribution programs, and contribute to realizing a sustainable society.

  • Social contribution programs are to contribute to solving social issues as a member of society by introducing resources and expertise with or without direct compensation toward the resolution of these issues.
  • Based on the Chugai Group’s Mission Statement and taking account of the challenges facing local and international communities, we will actively promote our social contribution programs in our priority areas of Healthcare, Social Welfare, Inclusive Society, Next Generation Development, and Local Community.
  • Regarding contributions to the field of Healthcare, we will engage in activities that contribute to the development and advancement of science and technology, especially in the areas of medicine and pharmacology, as well as to global health with the aim of improving access to healthcare, and making use of the knowledge and experience we have gained through our business activities.
  • We will remain aware of our role and responsibility as a good corporate citizen and maintain close ties with the community and society. We will also develop and promote our social contribution programs in cooperation with various stakeholders.
  • In addition, we will encourage and support the social contribution programs in which our employees participate.
9. Protection of the Global Environment

We conduct our business activities in harmony with nature and the environment, and preserve our “one and only Earth” for future generations.

  • Protection of the natural environment and biodiversity is a common issue 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 comply with all legislation and regulations, agreements with the parties concerned, internal rules and voluntary standards relating to environmental protection.
  • We promote continuous improvement of our environmental protection activities by setting “EHS goals and action plans” based on the EHS (Environment, Health, and Safety) Activities Management System.
  • We engage in initiatives that help control global warming and other climate changes and encourage resource conservation, waste reduction, prevention of environmental pollutions, and biodiversity conservation at every stage of research & development, production, transportation, marketing and disposal of our products according to the EHS action plans.
  • Water is an important resource that is essential for a sustainable society and business activities. We will contribute to sound water circulation on the Earth by carefully using this finite resource, treating waste-water and then returning it to the environment.
  • We will handle chemical and biologically substances in an appropriate manner to prevent them from causing health damage and environmental pollution.
  • 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 stakeholders.
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