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”.

We set Core Values as the most important standards of value judgment in realizing the Mission and will operate our business in accordance with them. Chugai Group will contribute to the realization of a sustainable society by solving social issues through creating innovation and efforts toward the global environment, human rights and others.

By acting as an appropriate business guide for every employee within the Chugai Group, the Chugai Group Code of Conduct aims to ensure that these business operations are implemented. Every member of the Chugai Group must act and judge 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 patient’s 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 globally top-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. 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 leadership.
  • By promoting diversity and inclusion, we maximize the abilities of 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. We will also always engage in fair and transparent activities.
  • 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.
  • 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 applicable laws and regulations such as the Competition Law, as well as the pharmaceutical manufacturers’ associations code of practice in the relevant country. 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 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.
  • 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.
  • 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.
  • It is imperative that the Company avoids situations that may conflict between It’s 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.
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 free and secure. 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 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 the prevention of occupational injuries and the maintenance and promotion of health through efforts for Health and Productivity Management.
  • 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.

<Universal Declaration of Human Rights Article 2-1>
Everyone is entitled to all the rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, color, sex, language, religion, political or other opinion, national or social origin, property, birth or other status.

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 will also 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.
  • We do not tolerate corruption or bribery in any form and violations of human rights in any part of our supply chain.
  • As a citizen and member of an industry associated with human life, we will promote constructive dialogue with 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.
  • We will act in compliance with ethical laws concerning public officials in relevant countries when we are in with public officials and those deemed to be public officials.
  • Collusion with politicians and administrative bodies and corruption significantly harm the soundness of the economy and society. We will always maintain fair, transparent and accountable relations.
  • In addition to our business partners and customers, we have 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 solving social issues.
  • When making with staff from a public organization, we will be careful not to infringe upon the 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.
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 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.
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 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, 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 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. Each country’s applicable laws and regulations and pharmaceutical manufacturers’ associations code of practice regulate the labeling and advertising of pharmaceuticals. The information that we provide conforms to these regulations.
8. Social Contribution

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

  • Social action programs are involvement in tackling social issues as a member of society by introducing resources and expertise with or without direct compensation toward the resolution of these issues.
  • We will actively promote our social contribution programs in our priority areas of Healthcare, Social Welfare, Inclusive Society, Next Generation Development, Local Community, and Environmental Protection. We selected these priority areas based on the Chugai Group Mission Statement, taking account of the challenges facing local communities and the international community.
  • Regarding contributions to the field of Healthcare, we will support activities that contribute to the development and advancement of science and technology, especially in the areas of medicine and pharmacology, as well as to the global health with the aim of improving access to healthcare, 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 action programs in cooperation with various stakeholders.
  • In addition, we will encourage and support the social action 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 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 comply with all legislation and regulations, agreements with the parties concerned, internal rules and voluntary standards relating to environmental protection.
  • We promote continual 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 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 EHS action plans.
  • Water is an important resource that is essential for a sustainable society and business activities. We will contribute to healthy 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 biological 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 the stakeholders.
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