Activities to Enhance Corporate Ethics

In accordance with THE SHISEIDO PHILOSOPHY, Shiseido has put in place the Shiseido Code of Conduct and Ethics so that employees will act based on a stronger sense of ethics in all business activities. We also provide training and education to put the Code into actual practice, striving to build mutual respect among employees regardless of their background and to win the confidence of all our stakeholders. In addition, we have Whistleblowing and Consultation Hotlines for employees to report unethical behavior as quickly as possible. Reported information is investigated carefully and appropriate steps are taken to address any issues. Such ethical awareness initiatives and the framework to facilitate them are key to realizing a workplace where individuals can deliver their best performance, thereby promoting honest and ethical corporate behavior and business growth alike.

At the global regional headquarters, Risk Management Officers take charge of ethics promotion in each region. The Risk Management Officers are supported by Business Ethics Officers assigned to each affiliate at the global level and Ethics & Compliance Leaders in Japan.

In 2022, we will hold the same training globally so that all employees can understand and act in line with the Shiseido Code of Conduct and Ethics.

Training programs are carried out once a year for all employees of the Shiseido Group in Japan. We provide human rights awareness programs to address discrimination in workplaces, while our corporate ethics training curriculum includes harassment prevention and response. We also conduct training sessions to improve communication in various settings so as to build an open, encouraging workplace culture.

We also provide group training sessions which are specific to a person’s post and/or position in the corporate hierarchy (executive officer, manager, new recruit, etc.), as well as those tailored to the characteristics of each affiliate.

The hotlines described above are paired with fair problem-solving routes and rules which explicitly prohibit the disadvantageous treatment of whistleblowers and prescribe the confidentiality of reports and consultations. Information about the hotlines, which includes instructions on their use, is communicated to every employee via the distribution of digital leaflets, and Company intranet bulletin board messages, etc.

The Division in charge of the Whistleblowing and Consultation Hotlines handles reports and concerns with due care to protect the privacy of those concerned. As necessary, a fact-finding investigation is launched. If a survey reveals a compliance violation, the offender is taken disciplinary action per employment regulations. Management is alerted without delay if a case poses a business impact risk. Serious compliance-related concerns are reported to management at the Global Risk Management & Compliance Committee and/or HQ/SJ Compliance Committee, and steps are taken to prevent reoccurrence.

In addition to the employee hotlines, the Shiseido Group in Japan conducts regular surveys of employees to identify workplace discrimination/harassment/compliance issues and challenges, and to mitigate such risks. Our process for mitigating the risks of discrimination, harassment, and compliance issues includes sharing survey results with companies, affiliates and departments identified by the survey as having problems and proposing corrective measures that should be implemented, as well as incorporating issues/challenges identified through an analysis of survey results into employee education.

The Risk Management Department reports to management and the Audit & Supervisory Board members on whistleblowing records and employee survey results and receives supervision for risk mitigation.