CSR GUIDELINES FOR SUPPL

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1 Revision - Rev. 1 Rev. 2 Date Description Aug/20100 Establishment Jun/ st revision Mar/ nd revision CSR GUIDELINES FOR SUPPL LIERS March 2017 MITSU UBISHI MOTORS

2 Table of contents Page 1. Introduction 1 2. Outline and Use of These Guidelines 2 3. CSR Fields and Items (1) Safety and quality 3 (2) Human rights and labor 4 (3) Environment 5 (4) Compliance 6 (5) Information disclosure 7 4. Voluntary Examination Check Sheet 8

3 1. Introduction The stakeholders focus on the approach to CSR must be aligned with the CSR in each country where the company does business, in line with the globalization of such activities. The expectations and a demands of stakeholders have been on the increase, and for the t automobile industry that has a major impactt on the economy, not onlyy the approach of individual companies, but also that of the entire supply chain has come under scrutiny. As one of thesee approaches, wee issued the CSR Guidelines for Suppliers in August 2010, and request our business partners to implement CSR in cooperation with our company.. We have newly added a statement about the nonuse of raw material causing social problems such ass conflict minerals in the human rights and labor field as a challenge for CSR in response to the t development and expansion of our production andd procurement activities that are continuing to grow globally. We have issued the Guideliness for Green Procurement for the environment with whichh you are complying, but wee also ask that you implement the items listed hereinn in order to fulfill your obligations including environmental protection as a member of o society. It is important that both vendors and our businesss partnerss understand this. We would appreciate your support. Senior Vice President (Procurement) - 1 -

4 2. Outline and Use of Thesee Guidelines These guidelines are a summary of common items i included when we communicate CSR to our business partners. Specifically, referring to the Charter of Corporate Behavior, etc.. of the Japan Business Federation, we have selectedd 24 items in 5 sectors which we expect our business partners to tackle especially in the automobile industry. Based on these guidelines, we expect our business partners to convey this message to their vendors. Company Stakeholders Customers Business B Partners Employees Stockholders Local & Global Communitiess Environment Compliance Information Disclosure Safety & Quality Human Rights & Labor Growth of company and sustainable development of society s and the world * We have prepared a template for thee voluntary examination check sheet to help our business partners self-evaluate and self-improve their approach to CSR. Please use this emplate as needed. ( Refer to the end of this document.) - 2 -

5 3. CSR Fields and Items (1) Safety and quality Providing products and services that respond to the needs of consumers and customers Socially useful products* are currently under development by understanding the needs of consumers and customers. * Socially useful products such as those that can be used easily by everyone regardless of age, gender, disability, etc., and those that are earth-friendly and contribute to energy and resource savings and environmental preservation. Providing appropriate information on products and services Appropriate information on products and services should be provided to consumers and customers. Securing the safety of products and services The products and services provided should conform to the safety regulations and related laws established for each country. Securing the quality of products and services A structure for securing the quality of products and services should be built and put into practice throughout the company

6 (2) Human Rights and Labor Abolition of discrimination In all cases of employment*, there must be no discrimination against any race, ethnic group, country of origin, nationality, religion, gender, and so forth. * Application, adoption, promotion, wages and salary, dismissal, retirement, business permission, punishment, etc. Respect for human rights Any harassment in any form within the working place against any race, ethnic group, country of origin, nationality, religion, gender, and so forth must not be permitted. Prohibition of child labor Employment of a child under the age eligible for work as described by the regulations in each country must not be permitted. Prohibition of forced labor It shall be guaranteed that all work is voluntary, employees are free to leave their job, and no employee will be forced to work. Wages and salary The regulations of each country pertaining to minimum wage, overtime work, payroll deductions, wages commensurate with performance, and other benefits, etc., must be observed. Working hours The regulations of each country pertaining to the number of working hours (including overtime work), and the granting of holidays and annual leave with pay, etc., must be observed. Discussion and negotiation with employees The management should discuss and negotiate in good faith with the employees or a representative of the employees. The freedom of association by employees should be recognized according to the regulations of each country. Safe and healthy working environment The highest priority should be given to ensuring the safety and health of the employees in carrying out their job duties to prevent accidents and disasters. Nonuse of raw materials such as conflict minerals that will cause social problems To avoid the use of raw materials involving an inhumane act, it is essential to comprehend the situation as well as take appropriate measures

7 (3) Environment Environmental management In order to promote a wide range of environmental activities, the regulations of each country must be observed, and the structure across the entire company should also be built, put into practice and improved on an ongoing basis. Reduction of greenhouse gas emissions In order to contribute to the prevention of global warming, the emission of greenhouse gases in business operations must be controlled, reduction activities should be promoted, and effective utilization of energy should be addressed. Prevention of environmental pollution of the atmosphere, water, soil, and the like The regulations of each country pertaining to the prevention of environmental pollution of the atmosphere, water, soil, and the like must be observed, and pollution materials should be monitored and reduced on an ongoing basis. Resource saving and waste reduction The regulations of each country pertaining to the proper disposal and recycling of waste material must be observed, and also the reduction of the quantity of waste material for final disposal should be addressed by effectively using resources. Management of chemicals Chemical substances that may cause environmental pollution must be appropriately managed. Products must not contain any chemical substances that are prohibited by the regulations of each country. In addition, such prohibited chemical substances should not be used in any production processes, and the emission amount of chemical substances specified by the regulations of each country should be confirmed and reported to the relevant administration department

8 (4) Compliance Compliance with regulations The regulations of each country must be observed. The policy and structure as well as the systems such as the action guidelines, reporting system, and education should be maintained and put into practice. Compliance with competition laws The competition laws of each country must be observed, and any acts such as private monopoly, unfair trade restraints (including cartels and collusive bidding), unfair trade methods, and abuse of preferred position should not be performed. Corruption prevention Political donations and contributions, etc. must comply with the regulations of each country in an effort to establish a transparent and fair relationship with the government and relevant administration department. Business entertaining, gift-giving, and monetary payments for the purpose of making unjustifiable profits and gaining preferential treatment must be avoided. Management and protection of classified information Information on employees, customers, and third parties, as well as classified information on customers and third parties must be obtained in a legitimate manner, and must also be strictly managed, used within the appropriate scope, and securely protected. Management of export transaction Regarding the export of technologies, goods, etc. to which the regulations of each country are applied, proper export formalities and controls must be implemented. Protection of intellectual property The intellectual property rights that are owned by or vested in the company must be protected. In addition, any intellectual property rights of a third party must not be obtained or used illegally, and must not be infringed upon

9 (5) Information disclosure Disclosure of information to stakeholders Information on the financial standing and business performance as well as the details of business activities should be disclosed to the stakeholders accordingly and appropriately in an effort to develop and maintain a relationship of mutual understanding and trust with the stakeholders through open and straightforward communications

10 4. Voluntary Examination Check Sheet We have prepared a template for the voluntary examination check sheet to help our business partners self-evaluate and self-improve their approach to CSR. When setting the questions and answers for each field and item, please use the following template: Template for check sheet Laws and regulations System Preventive measures Education Current status Questions Do you understand the regulations, rules, and provisions to be observed? Have you decided on the responsible department or person? Do you have a policy and system, or any rules and procedures for publicity within the company? Do you implement education for your employees? Do you understand the current status through in-house research? Answers (Alternative form) 1) We understand the latest information at all times. 2) We roughly understand the important ones. 3) We will understand them when necessary. 1) We have decided on the department or person according to the provisions. 2) We have decided on the department or person without any provisions. 3) We will make the decision when necessary. 1) We have written provisions for the policy and system, and the rules and procedures. 2) We do not have any written provisions, but make them as necessary. 3) We will prepare this when necessary. 1) We implement such activities on a regular basis. 2) We implement such activities, but on an irregular basis, or only for some of the employees. 3) We will implement this when necessary. 1) We always understand the current status through in-house research on a regular basis. 2) We try to understand the current status on an irregular basis. 3) We will understand the current status when necessary

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