ITEE ITEE-1 | Page 21

1-1 Corporate activities 1-1-1 Management and organization It is important to have an overall understanding of a corporation in terms of business activities, objectives, and relevant laws in order to recognize and resolve issues in responsible business areas, and facilitate the execution of operations. 1 Corporate activities In conducting corporate activities, it is important to clearly understand the importance of existence of the corporation and its values. If these are not clearly defined, the course of corporate activities becomes uncertain. No matter how hard each employee in their responsible business area works, such efforts will lack efficiency if they are not properly guided. Understanding the goals and responsibilities that a corporation should designate will lead to well-balanced corporate activities. Reference CSR Abbreviation for “Corporate Social Responsibility.” Reference SRI Abbreviation for “Socially Responsible Investment.” Reference Disclosure of financial results A corporation should endeavor to disclose financial results and other useful information in a timely and appropriate manner to stakeholders, including shareholders and investors. Improving management transparency by such disclosures makes it possible to build trust and enhance corporate value. 15 (1)Corporate philosophy and corporate objective The purpose of corporate activities is to earn profits and contribute to society. Accordingly, corporations adopt a “corporate philosophy” and “corporate objective” in which to conduct its activities. Corporate philosophy and corporate objective are universal ideals that essentially do not change. However, the environment surrounding a corporation is undergoing significant changes in terms of social climate, technology, and other factors. In order to fulfill its corporate philosophy and objective, a corporation must – from a long-term perspective – develop the capability to adapt to such changes. (2)Corporate social responsibility “CSR (Corporate Social Responsibility)” refers to the responsibilities that a corporation should fulfill to society. Many corporations promote their CSR approach through their websites, or publish a CSR report in order to earn public interest and stakeholder trust. Corporations must endeavor to create business from the perspective of all stakeholders, and not solely for the pursuit of profit. As evidenced by the existence of the term “corporate citizen,” corporations are expected to act as productive members of society. Doing so leads to earning public confidence and creating new corporate values.