Integrity

Targets, Results and Self-Evaluation of the CSR Activities

Compliance

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With Business Partners

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Quality and Customer Satisfaction (CS)

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As for the results, we self-evaluate them on a scale from A to C. We will continue to improve our CSR activities by self-evaluating the results.

Criteria for Self-Evaluation

Highlights of Activities in 2009

For AGC Group to be more recognized as a globally significant corporate entity, we must share high corporate ethics across the Group and behave in consideration of the cultures and customs of the countries and regions in which we operate. To this end, AGC Group companies hold compliance meetings in their respective countries and regions to improve their compliance levels in cooperation with one another.

Holding Compliance Meetings within Each Country and Region (Asia Including Japan)

In Asia including Japan, directors and managers in charge of compliance at each Group company in the region started to meet periodically in 2008 by country and region. In fiscal 2009, such meetings were held in Singapore, Thailand, China, Indonesia, South Korea, and Taiwan, where participants share information about AGC Group's policies and measures, set benchmarks based on successful examples, and proactively exchanged opinions about the activities and problems they face.

Compliance meeting in Indonesia

Compliance meeting in Indonesia

Compliance meeting in Thailand

Compliance meeting in Thailand

Compliance meeting in South Korea

Compliance meeting in South Korea

Third-Party Opinion

Mr. Susumu Akiyama Representative Director, Principle Consulting Inc.

Mr. Susumu Akiyama
Representative Director,
Principle Consulting Inc.

I believe that global companies need to meet the following three requirements if they really want to foster their compliance management:

(1)Clarify the values to be shared beyond national boundaries and localize these values in consideration of the specific features of each local area and business operation.

(2)Ensure that employees understand and always behave in line with the values at their workplaces.

(3)Review the values on a regular basis and make improvements.

AGC Group seems to already meet these three formal requirements for global compliance management, because (1) it has a code of conduct that is applied on a global scale; (2) it provides employees in various regions with many learning opportunities in consideration of local circumstances; and (3) it is working to improve its reporting flows and to enhance its internal audit system.
I, however, can not see whether the Group is committed to global compliance management in a true sense. I do not either know whether their human resources really behave in line with the corporate code of conduct or whether the Group has enough ability to deal with problems such as quality-related problems through group-wide cooperation beyond national and organizational boundaries. Although I admit that AGC Group seems to be on an advanced level with regard to compliance management, I still hold the abovementioned concerns. If, however, the Group is prepared and ready to address these concerns appropriately, I will admit that it is indeed an excellent corporate group both in name and reality. With great expectations, I look forward to seeing how AGC Group will develop itself in the future.

Stakeholder Dialogue

We exchanged opinions with our stakeholders on the challenges and targets to be met to enable the Group to share the concept of compliance and promote an appropriate corporate culture on a global scale.

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