Enhancing Compliance System in Keeping with Business Globalization

As companies of Sumitomo Chemical Group engage in and expand business in various parts of the world, it becomes growingly important that each company not only pursue commercial interests, but also ensure compliance in its conduct of business in a manner to honor the culture, social norms and legitimate business practices of respective regions where the company conducts business. Accordingly, in addition to each Group company building and operating its own compliance system, Sumitomo Chemical's Compliance Committee, as global headquarters for the Group's compliance management, is also making every endeavor constantly to keep abreast of the latest compliance-related situation in major business regions, such as important developments of local laws, regulations or society's demands, through its established network with a number of lawyers or other experts around the world. Making use of expertise thus gained firsthand, the Compliance Committee renders timely support to Group companies as need arises so that Group-wide compliance initiatives will be promoted effectively in keeping with ever globalizing operations of Sumitomo Chemical Group.

Sumitomo Chemical’s global compliance initiatives, such as those stated above, are dictated by its basic policy, “Think Globally, Manage Regionally, Act Locally”. The thrust of this policy lies in our firm belief that activities to attain compliance at Group companies can be best advanced on a regional basis. From this perspective, we have set up Regional Legal & Compliance Offices in five of our major business Regions around the world, i.e. Asia・Oceania, People's Republic of China, the Americas, Europe, and Japan・Korea・Republic of China. Each Regional Legal & Compliance Office actively supports Group companies located in respective Regions in furthering compliance activities so as to meet their specific needs and requirements in building and operating a compliance system, or providing effective compliance education, etc.

The Regional Legal & Compliance Office has the role of not only supporting Group companies in this fashion, but also grasping their compliance situation, providing supervision, undertaking investigation when necessary and offering compliance guidance as appropriate. The Regional Legal & Compliance Office, in close cooperation with Sumitomo Chemical's Compliance Committee, takes part in the Sumitomo Chemical’s Group-wide compliance initiatives as the Group's activities continue to globalize in the years and decades ahead.