Business Conduct Guidelines

1. Ensure the Safety and High Quality of Products

(1) We shall always strive to develop and provide high quality products that place emphasis on the health and safety of our consumers and customers.

• On the basis of Yoki-Monozukuri, which is defined in The Kao Way as a strong commitment by all members to provide products and brands that can provide satisfaction for consumers and customers, we shall strive to improve the quality, safety and reliability of our products and services.
• We are committed to thorough safety assessment, product quality testing, and quality management activities, paying particular attention to human safety as a top priority. We shall always actively collect information about safety and quality of products and strive to improve the safety and quality of our products.
• We shall earnestly attempt to apply the latest technology and expertise of the highest level possible at all stages of the product lifecycle, including development, production, distribution, usage, storage, and disposal of our products in order to promote human safety. We shall not bring any product to the market until confirming that the safety level of a product, at each stage, has achieved the standard designated by the company.
• To ensure product quality, we will implement all processes necessary to provide our products in strict compliance with established standards and procedures, including those relating to selection of raw materials, quality verification, quality control in the manufacturing process, inspection, and distribution. At the same time, we are committed to continual improvement in quality control.
• We shall endeavor to respond to diversified consumer and customer needs and the progress of globalization to heighten the degree of consumer and customer satisfaction around the world.
• We shall strive to reduce costs to provide high quality and useful products and services at reasonable prices. We shall follow and carry out the Five Principles for Product Development, which advocates: 1) usefulness and value to society; 2) creativity and originality; 3) effective cost performance; 4) thorough market and consumer research; and 5) comprehensive features of retailers.

(2) We shall strive to provide consumers and customers with appropriate information so that they may choose products properly and use them safely and comfortably.

• To allow consumers and customers to properly select and use our products safely, comfortably and securely, we shall provide appropriate instructions regarding the features and proper use of products from the consumer's and customer’s points of view. Such instructions should be labeled or placed together with the products.
• To prevent the misuse and improper use of a product that may cause serious injury or damage to consumers and customers or their property if used improperly, we shall issue a cautionary statement on or inside the product packaging. Cautionary statements shall act as a warning to advise the consumers and customers of possible injuries or damage that may occur through misuse or improper use, explain how to avoid such injuries or damage and provide first-aid or other appropriate information.
• We shall provide our consumers and customers with an MSDS (Material Safety Data Sheet) or other safety information that may be necessary or appropriate in regard to the delivery of chemical substances. If a product is potentially hazardous, we will issue suitable instructions and a cautionary statement on or inside the product packaging to enable the consumers and customers to easily understand the potential dangers of the product.
• If we find that an indication on products could reasonably cause a misunderstanding or is inappropriate, we shall promptly revise such indication on the principle of "consumer safety first".
• We shall provide accurate information about product safety to consumers and customers in a timely manner. In the event of an accident involving injury to a person using our product, we shall promptly investigate the cause and implement appropriate preventive measures as well as provide precise information to medical and/or other relevant institutions, with the highest priority given to the safety of consumers and customers.

(3) We shall provide honest and prompt responses to consumer and customer inquiries and complaints.

• We shall listen sincerely to consumer and customer opinions and demands concerning our products. We shall share their opinions and demands with the relevant divisions and departments for improvement of our products.
• We shall earnestly attempt to understand complaints from the consumers' and customers' standpoint and we shall accept responsibility to resolve any valid complaints fairly.
• We shall strive to achieve consumer and customer satisfaction in terms of product quality and by quickly, accurately and considerately responding to consumer and customer inquiries.
• We shall strictly control our consumers' and customers' personal information and shall not improperly disclose such information to third parties without their prior consent. We shall not use nor disclose such information for any purpose other than that authorized by our consumers and customers or permitted by law.

(4) We shall advertise honestly and sensibly.

• When advertising our products, we shall strive to explain the product features in a manner that is easy to understand while using creative and modern expressions. Specifics shall be communicated based on fact, using fair and accurate expressions so as not to provide misleading information.
• We shall advertise the appealing points of our products fairly and shall not defame our competitors or their products nor use any expressions in our advertising that discriminate unfairly against groups of people based on race, religion or other protected categories.
• We shall confirm that any advertising media to be used, such as broadcasters, the programs they broadcast and magazines, are considered favorably by society. We shall not select media that may damage our reputation with the public or the trust of society, and we shall not use media which offend social norms or morality. If, after the commencement of an advertising campaign, we learn that the media selected for the campaign are not viewed favorably by society generally, we shall take all necessary steps to rectify the situation.
• When using the corporate logo, corporate name, or trademark, we shall abide by internal standards for their use.
• We shall confirm in advance all relevant laws and regulations relating to advertising and premiums, unfair competition, trademarks, food, drug and cosmetic affairs and copyright in order that we shall not violate such laws and regulations in our advertising.