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Basic Concept of Compliance

Sumitomo Electric believes that complying with laws and regulations and maintaining corporate ethics comprise the backbone of its management and form the absolute basis for the Company's continued existence and development.
In response to the on-site investigation by the Japan Fair Trade Commission (JFTC) in June 2009 concerning optical fiber cables and related products, we have taken corrective action out of recognition of the seriousness of the matter, including the exhaustive compliance with the Antimonopoly Act and prompt recruitment of outside experts to conduct studies into other infringement behavior, if any, in order to identify and eliminate conduct that violates the Act. Additionally, we have conducted intensive training, enforced Competition Law Compliance Regulations and established a system to ensure the administration and management of the Regulations by specialized organizations in order to reinforce competition law compliance by the entire Group.
We are striving to implement fair business activities that merit the trust of society, identifying competition law compliance as a top priority issue in our business management.

Compliance Committee

The Sumitomo Electric Group has established the Compliance Committee, chaired by the President, as an organization that promotes measures necessary to develop and further strengthen the compliance system. The Committee engages in various activities, including preparing and distributing the Sumitomo Electric Group Compliance Manual and organizing compliance training seminars. In addition, the Committee identifies and analyzes Group-wide compliance risks, disseminates preventive measures Group-wide, and monitors the compliance activities implemented by each division and subsidiary.

Efforts to Raise Awareness of Compliance

●Code of Conduct

The Code is a statement of our shared values and the standards of conduct that are expected of each of us. It describes the fundamental principles and key policies that govern how we conduct business. The Code applies to all Company employees, officers, and directors, at every level. We distribute this Code of Conduct to Sumitomo Electric Group companies worldwide.

●Compliance Education

Competition law compliance training
Competition law compliance training

To check compliance risks, ensure implementation of preventive measures and develop and enhance awareness of compliance, the Compliance Committee organizes regular training seminars for all officers and administrative members every year. New employees and newly promoted personnel are also provided with training seminars.
The Sumitomo Spirit, which forms the basis of the Sumitomo Electric Group's compliance system, as well as our philosophies and code of conduct mentioned in the Sumitomo Electric Group Corporate Principles and the Sumitomo Electric Group Charter of Corporate Behavior are also disseminated by, for example, holding a variety of training programs and citing comments made and actions taken by top management.

*Click here on the Sumitomo Spirit, the Sumitomo Electric Group Corporate Principles, and the Sumitomo Electric Group Charter of Corporate Behavior.

Speak-Up System

We have put in place the Speak-Up System, which enables employees to directly report and consult on potential compliance-related issues, so as to identify and resolve such issues by ourselves at an early stage. Such reporting and consultation can be made internally through the Company's compliance contact or through a third party appointed as an external contact in the Speak-Up System. While Sumitomo Electric Group companies are encouraged to establish their own in-house hotline contacts, the above-mentioned external contact is also made available for use by Sumitomo Electric Group companies worldwide. The hotlines are available not only to our employees but also to families and business partners outside the Company. For more information on hotline, please see below:

Competition Law Compliance System

To eliminate competition law violations including cartel and collusion by the Group companies, we adopted Global Antitrust and Competition Policy in February 2020 and have obliged directors, officers and employees to comply with it. In addition, under the supervision of the Compliance Committee, the Compliance & Risk Management Office (established in the Corporate Staff Group), together with the sub-organizations dedicated to competition law compliance and the competition law compliance managers of each of the Business/Sales Units, forms a system to monitor the operation of, and compliance with, the Competition Law Compliance Regulations which includes rules to restrict contact with competitors. In this way, all the directors, officers and employees are firmly engaged in competition law compliance.

Anti-bribery Compliance System

Sumitomo Electric introduced an anti-bribery program in April 2013 to enhance its anti-bribery compliance system on a global scale. This program has established rules on bribery-related issues, including ban of bribery, as well as ex ante approval and ex post report on gifts, donations and offering entertainment, in the Bribery Prevention Compliance Policy in response to the recent tightening of regulations on bribery of domestic and foreign public officers in the US, Europe and emerging markets. One bribery prevention manager are appointed in each unit to build a system to apply the rules.

Awareness of Compliance among Overseas Group Companies

We are also committed to the development of the compliance system among group companies overseas in line with the globalization of our businesses. Sumitomo Electric provides compliance training seminars for local managers.

Training Seminar in an Overseas Affiliate (Germany)
Training Seminar in an Overseas Affiliate

In addition, as part of SEI University activities, we organize the Global Leadership Program to develop awareness of compliance and create a sense of unity among the Sumitomo Electric Group with lectures on Sumitomo’s history and the Sumitomo Spirit , our group’s business visions and compliance, and through group discussions on practical subjects.

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