Compliance Promotion Structure

The NGK Group has established the NGK Group Corporate Business Principles, which set out the fundamental principles of its business activities, and the NGK Group Code of Conduct, which defines the rules to be followed in conducting business.
Each member of the NGK Group acts with a high level of ethics in accordance with the principles and the code. By fulfilling social responsibilities across the entire supply chain, the Group strives to build trust with society and its stakeholders.
The principles and the code have been translated into 13 languages, including Japanese, English, and Chinese, and are distributed to all officers and employees at the beginning of each fiscal year. In addition, the NGK Group Code of Conduct Guidebook, which provides more detailed guidance on compliance requirements, together with annual compliance training, ensures continuous and thorough compliance across the NGK Group. Furthermore, NGK and its domestic group companies use pop-up notifications on employees’ computers via the intranet to enhance awareness and understanding.
Compliance with laws and regulations, as well as with the principles and the code, is monitored through internal audits, an internal reporting system, and compliance awareness surveys. Their effectiveness is regularly reviewed through reporting and discussions at the Compliance Committee, leading to continuous improvement.

Compliance practices continue to evolve globally in response to changes in the social environment and laws and regulations. Accordingly, the NGK Group requires a framework that enables objective evaluation against international standards and ensures continuous improvement in its compliance activities.
In addition to legal compliance, it is important to unify approaches and values related to compliance initiatives in areas such as safety, the environment, and quality, and to enhance overall effectiveness.
Based on this concept, the NGK Group established the NGK Group Basic Guidelines for Compliance Activities in FY2021. This document sets out the fundamental principles regarding compliance practices within the NGK Group and has been communicated to all employees working for the NGK Group to ensure full awareness and adherence.
In accordance with these guidelines, relevant departments work collaboratively to promote effective compliance activities across a wide range of areas, including safety, the environment, quality, exports, human rights, and competition laws.

The NGK Group has established a Compliance Committee and has set up, under its supervision, a Compliance Activities Promotion Subcommittee composed of operational managers. The committee formulates compliance policies and deliberates on important matters.
The status of compliance activities is regularly reported to the Board of Directors, which is responsible for oversight.
Furthermore, to build an effective and robust compliance framework, the NGK Group appoints compliance officers and staff at its group companies in Japan and overseas. These personnel promote compliance initiatives while discussing their content and plans.
Looking ahead, the NGK Group aims to establish a framework in which each group company can independently plan, implement, evaluate, and improve its compliance initiatives.

Compliance Promotion Structure Chart

The NGK Group has established a whistleblowing system to enable early detection of compliance violations and to ensure organizational self-correction. The helpline and hotline comply with applicable laws and regulations, including the Whistleblower Protection Act, and are available to all individuals working in the NGK Group, including directors, employees, contract employees, temporary staff, secondees under outsourcing contracts, and individuals within one year after leaving the Company. Consultations and reports are, in principle, handled by an external third-party provider via telephone or the internet, and anonymous reporting is permitted. Internal rules ensure the protection of whistleblowers and prohibit retaliation. Only designated personnel in accordance with the Whistleblower Protection Act handle reports, and personnel in the NGK Group receive annual training on report intake, fact-finding, corrective actions, and responses to cases including harassment; in FY2025, this included customer harassment and misconduct cases. After receiving a report, the NGK Group conducts fair and sincere investigations from fact-finding through corrective actions, with advice from independent external attorneys. Where violations of laws or misconduct are confirmed, disciplinary actions are taken in accordance with employment regulations. In addition, the NGK Group has established channels, including a supplier helpline and its website, to receive feedback from all stakeholders involved in its business activities, such as suppliers, customers, and local communities.

Organization of Whistleblowing System