Corporate Governance

CSR Philosophy Chart

The Sanken Group's philosophy consists of three components: the Management Philosophy, the Conduct Guidelines, and the Conduct Guidelines (Code of Conduct).

Sanken Group CSR

Sanken group human rights policy

In recent years, with the development of economic activities, complexities, and globalization, there has been an increase in the importance of respect for human rights, which is required of us as a company by society. In accordance with the UN Guiding Principles on Business and Human Rights, our company and the Sanken Group have established a system that respects human rights by presenting our fundamental corporate approach to human rights (human rights policy) and by carefully analyzing the implementation of measures and their effects.

Basic CSR Policies

Sanken Group Basic CSR Policy

Based on its management philosophy, the Sanken Group's mission is to provide semiconductors to its core businesses with optimal solutions, including power electronics and peripheral areas, with the aim of contributing to the development of industries, economics, and cultures around the world. To achieve this, we have established the "Basic CSR Policy" as a code to be observed by all executives and employees of the Sanken Group with the aim of continuing to be a company that is trusted by society by not only complying with laws and regulations, but also by improving and strengthening corporate governance, protecting the environment, and ensuring a work environment that is fair and respected by each and every person.

1. Make social contributions through business activities

• To realize a sustainable social environment, we will contribute to the development of the international community through the development, production and sale of products in power electronics and peripheral areas that use high reliability and state-of-the-art technologies.
• We will constantly strive to innovate our technological and creative capabilities and contribute to the global society by providing high-quality, high-performance, and safe products.

2. Legal compliance and honest business activities

• We will faithfully abide by laws, internal regulations, and international norms such as the United Nations Global Compact and the Guiding Principles on Business and Human Rights, respecting high ethical standards.
• We will foster dialogue as a trusted entity among our customers, shareholders/investors, business partners, employees, local communities, and other stakeholders.
• We work to improve management transparency, improve the effectiveness of audits, and strengthen our internal control system.
• We endorse the purpose of anti-corruption as required by international norms such as the United Nations Global Compact, and we commit to conducting transparent business activities. We will not engage in any acts of bribery or actions that may be perceived as bribery towards government agencies, their officials, or politicians in any country, in order to maintain our ongoing commitment to transparency. Furthermore, we will not be involved in any corrupt practices, including embezzlement, extortion, or money laundering.
• We will completely sever all relationships and engagements with anti-social forces or organizations that may have a detrimental impact on the international order, security, or protection of human rights, as well as any unjust demands. Additionally, we will not purchase any products or raw materials associated with these entities.
• We will comply with company policies and internal regulations, and towards government agencies, their officials, or politicians in any country, refrain from offering gifts, meals, or any other form of economic benefits that surpass customary social practices. Furthermore, we will handle requests for entertainment, gifts, or other offerings from business partners with caution and will not accept personal benefits.
• We impose strict controls on the export of weapons, weapons, and related technologies that pose a threat to international peace and security, and do not allow them to be diverted to weapons and weapons.
• We trade in the import and export of products and technologies in accordance with relevant laws and regulations.

3. Respect for human rights and labor

• For this section, refer to the "Sanken Group Human Rights Policy".

4. Environmental Conservation

• We will take the initiative in addressing environmental issues, which are common to all mankind, and which are essential requirements for the existence and activities of a company.
• We operate a management system to promote environmental activities.
• We will manage chemical substances used in the course of our business activities, comply with laws and regulations when disposing of such substances as wastewater and emissions, and minimize their impact on the environment with voluntary targets.
• We conduct appropriate monitoring and management of greenhouse gases and waste, establish voluntary targets, and strive to reduce them.
• We promote green procurement of parts, fixtures, and consumables.
• We regularly compile and regularly disclose the measures we have implemented to protect the environment.

5. Contributing to local communities

• As a good corporate citizen, we will respect the culture and customs of the local community in all our business activities, cooperate with the local community, and contribute to the sustainable development of the local community by building relationships of mutual trust through support for educational activities, volunteer activities, and local development projects.

Corporate Governance System

We have established the "Board of Directors," "Audit and Supervisory Committee," and "Accounting Auditors" as organizations necessary for the management of the Company.
In addition, we are striving to improve management transparency by separating management and execution through the introduction of an executive officer system, and improving our corporate governance system through internal audits and internal control evaluations.

Corporate Governance Report

The report describes our basic approach to corporate governance and the status of the system, etc., as submitted to the Tokyo Stock Exchange.

Organizations of the Company and Its Status

• - Board of Directors
  A management decision-making body that decides management strategies, management targets, and other matters.In order to clarify management responsibilities for the fiscal year, the term of office is one year and is appointed as a director.
• - Audit and Supervisory Committee
  The Audit and Supervisory Committee, the majority of whom are external directors, take responsibility for auditing and supervising the legality and appropriateness of business execution by directors, which will enhance the transparency of management.
• - Accounting Auditor
  We are subject to external audits by EY Ernst & Young ShinNihon LLC.

Corporate governance system diagram

Sustainability Committee

We have established the Environmental (E) Subcommittee, the Social (S) Subcommittee, and the Governance (G) Subcommittee to promote specific problem solving for all themes.
The Sustainability Committee also oversees the overall management of ESG.The chairman is Satoshi Yoshida, director who is the "Officer in charge of ESG".

Dividend Policy

We have positioned the return of profits to our shareholders as one of our most important management measures. Our basic policy is to pay stable and steady dividends while retaining the internal reserves necessary to improve profitability and improve our financial position through aggressive business development and to strengthen the foundations of our overall management.
Our basic policy for dividends from retained earnings is to pay interim dividends and year-end dividends twice a year. The decision-making body for dividends is the Board of Directors for interim dividends. Year-end dividends are at the General Meeting of Shareholders.