Supplementary Explanations

12.1 Observance of fairness in commercial transactions
It is also necessary to comply with laws regarding fair business, including fair competition and subcontracting laws, and to refrain from such illegal acts as entering cartel agreements to restrict competition, engaging in unfair business practices, and making misleading representations.
We must not engage in unfair actions such as abusing a dominant position with respect to suppliers.

12.2 Corruption prevention
It is necessary to uphold a policy of prohibiting any and all forms of bribery, excessive entertainment or gifts, corruption, blackmail, or embezzlement, and maintain continuous compliance.
Directly or indirectly providing or receiving something valuable, or promising or proposing to do so, in order to gain business or obtain inappropriate benefit is prohibited.
Please see the azbil Group’s aG Corruption Prevention Basic Policy on our homepage for details.

12.3 Respecting intellectual property
The protection of intellectual property applies not only to the company itself, but also to third parties such as customers and suppliers.
Intellectual property rights are rights defined by law, and include patent rights, utility model rights, design rights, trademark rights, and copyrights.
Intellectual property includes trade secrets and technical know-how in addition to intellectual property rights.

12.4 Protection of whistleblowers
In the complaint processing mechanisms usable by stakeholders, including employees in our company and in suppliers, both the confidentiality of the report details and the anonymity of the whistleblower must be protected. Whistleblowers must also be protected from any unfavorable treatment from corporations or individuals in retaliation for reporting.
It is necessary to also protect the confidentiality of information that is brought forward and the anonymity of workers who bring the information or seek consultation, and to take steps to prevent retaliation against them.

12.5 Appropriate import and export management
There are a variety of laws and regulations for importing and exporting in each country, and it is necessary to both understand and comply with these. Technologies and commodities regulated by laws and regulations refer to those parts, products, technologies, facilities, software, etc., that are subject to laws and regulations based on international agreements (such as the Wassenaar Arrangement).
The Wassenaar Arrangement is an agreement aimed at preventing the excessive movement and accumulation of conventional weapons that could threaten regional stability. It achieves this through responsible export control of conventional weapons and related generic products and technologies, while also keeping these out of the hands of terrorists.