Yamaha Compliance Code of Conduct

 For Yamaha, "Compliance" refers to Yamaha group companies and Yamaha employees having an open and fair attitude with regard to four types of stakeholders (customers, shareholders, people working with Yamaha, and society), as well as to people associated with Yamaha business around the world, complying with legal requirements and internal codes, and conforming to business ethics and social norms. The Yamaha Compliance Code of Conduct offers specific examples of actions and behavior that will help to bring these concepts to reality. Below are the codes that are used as guidelines for Yamaha Group companies. Overseas subsidiaries have their own codes, which are based on these codes and which have been adapted to local legislation and social norms.

1.RELATIONSHIPWITHCUSTOMERS

1-1 Realization of customer satisfaction
Yamaha makes maximum efforts to develop, manufacture and provide high-quality products and services to ensure its customers are impressed and satisfied.
1-2 Ensuring safety of products and services
Yamaha will take all reasonable measures to ensure that its products, services or facilities do not cause damage or injury to a customer's life, body or property. In the event that any damage or injury is caused despite our efforts, Yamaha is committed to providing prompt and appropriate remedies and to taking appropriate steps so that the same event will not happen again.
1-3 Proper advertisement and publicity and accurate presentation of information
Yamaha shall ensure proper advertising and publicity communicating the contents of its products and services to consumers as well as representing accurate information about them in accordance with applicable laws and regulations.
1-4 Understanding of consumer-protection regulations
Yamaha understands the essence of the applicable consumer-protection regulations, complies with them, and markets its goods only after it has fully provided appropriate explanations of its products, services or warranties according to each customer's level of knowledge and experience and each product's or service's specific characteristics.
1-5 Protection of customers' personal information
Yamaha observes laws and regulations and relevant internal rules concerning the protection of personal information, and strives to provide the proper protection and utilization of customer information based on "Yamaha Personal Information Protection Policy".
1-6 Offer of after-sales services and response to customer inquiries
Yamaha has a well established after-sales services system, and sincerely responds to its customers' requests in an effort to provide complete customer satisfaction. Moreover, Yamaha responds to inquiries and requests from customers in a sincere and honest manner.

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2.RELATIONSHIP WITH SHAREHOLDERS AND INVESTORS

2-1 Accurate accounting records and financial reports
Yamaha accurately prepares its accounting books in compliance with applicable laws and regulations and provides a true and accurate report of its financial condition and operational results to the required government entities and to its shareholders. Yamaha hereby declares that it will in no case dress up its reports motivated by unjust reasons, nor will it engage in any inappropriate accounting practices.
2-2 Timely disclosure of information
In pursuit of establishing "transparency" in its operations, Yamaha regularly updates its shareholders and investors with appropriate business information in order to obtain their support for Yamaha's activities. In addition, Yamaha also promptly publishes any information that may have a material impact on its business operations.
2-3 Prohibition against speculative trading
Yamaha does not engage in speculative trading for the purpose of making profits outside its main business.
2-4 Distribution of profits
Yamaha strives to distribute profits to its shareholders, as well as to reserve profits internally for reinvestment.
2-5 Prohibition against extending benefits to shareholders
Yamaha does not extend financial benefits to anyone in relation to, or in return for, his/her exercise of shareholder rights, and Yamaha will never offer any economic interest nor promise the same in response to any requests from "Specific Shareholders" including "Sokaiya" or racketeers (professional troublemakers at shareholder meetings, etc.).
2-6 Prohibition against insider trading
Yamaha shall not tolerate insider trading. If an employee obtains material information concerning Yamaha or any other company, such an employee is prohibited from purchasing or selling securities of the company about which he/she has obtained material information until such information is made public and sufficient time has passed for it to be evaluated thoroughly by the investment community.

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3.RELATIONSHIP WITH EMPLOYEES

3-1 Respect for creativity and independence
Yamaha respects and encourages employee creativity and independence, and strives to maintain the conditions necessary to realize them. Yamaha protects and effectively utilizes its intellectual property, such as inventions and creations, produced in the course of its business activities.
3-2 Prohibition against harassment
Yamaha prohibits unjustified discrimination by language or behavior that may be construed as harassment, including sexual harassment and power harassment of subordinates or any other employees.
3-3 Favorable employer-employee relationships
Yamaha adheres to the protection of employees' rights prescribed by international treaties, law, collective labor agreement and other agreements between the employer and "employees". We promote the creation of an environment where employees and the employer can cooperate to achieve the corporate objectives.
3-4 Ensuring safety and good health
Yamaha continuously strives to improve its working environment by taking necessary measures in a continuous and planned manner in order to maintain and improve the physical and mental health of "employees". Employees must comply with the requirements that are requested based on such measures.
3-5 Fair evaluation and compensation
Yamaha determines evaluation and compensation of employees based on fair rules using criteria such as the ability to perform tasks, job responsibilities and achievements.
3-6 Promotion and development of job skills
Yamaha endeavors to encourage skill development of" employees" regardless of race, age, gender and other unrelated factors, so that employees can demonstrate the maximum performance. Managers are obliged to train employees through daily instruction so that they can understand the corporate philosophy of Yamaha and can enhance their value as useful members of the Yamaha team.
3-7 Prohibition against forced labor and child labor
Yamaha prohibits any form of forced labor or labor by children under the minimum age permissible by law. In addition, Yamaha supports international efforts to exclude and abolish such child labor and endeavors to realize this ideal.

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4.RELATIONSHIP WITH SOCIETY

4-1 Respect for human rights and prohibition against discrimination
Yamaha respects fundamental human rights and endeavors to observe internationally recognized standards in its business activities. Yamaha especially objects to any discrimination based on race, gender, religion, language or ethnic background, and will not discriminate based on ideology, creed or political opinion.
4-2 Protecting the global environment
Yamaha recognizes the importance of the protection of the global environment for mankind and society. We adhere to the spirit of the "Yamaha Global Environment Policy" and utilize environmental management systems in conformity with international standards, such as ISO14001, and implement full responsibility to minimize waste emissions.
4-3 Harmonization with society
Yamaha acknowledges that a corporation is a member of society and endeavors to be a "good corporate citizen." Yamaha will not only adhere to logic applicable within our organization, but will strive to foster socially acceptable values and conduct and to cooperate with the local community and thus to harmonize with it.
4-4 Dealing with antisocial forces
Yamaha rejects any culpable relationship with any terrorist support organization, organized crime organization or other antisocial organizations or persons. Resolute attitudes are required to deal with those who make unjustifiable demands by disguising themselves through business relationships or customer claims. Yamaha will respond to such organizations with a resolute attitude and will "not be afraid," "not offer money" and "not establish any relationship with them."
4-5 Promotion of social-contribution (charitable) activities
Yamaha contributes to the development and welfare of society through our business operations and by promoting social-contribution activities, and supports social contribution activities undertaken by our employees.

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5.RELATIONSHIP WITH BUSINESS PARTNERS

5-1 Relationships based on partnership
Yamaha considers its business partners as true partners who work with Yamaha to carry out Yamaha's business activities and contribute to the realization of Yamaha's corporate objectives, and therefore deals with them based on mutual trust.
5-2 Selection of suppliers
Yamaha selects its suppliers from the pool of suppliers who satisfy its objective procurement standards based on its fair and reasonable decisions.
5-3 Fair trade
Yamaha will not engage in unfair dealings with its suppliers and customers.
5-4 Elimination of improper relationships (gift giving, business entertainment, etc.)
Yamaha" prohibits any "employee" from abusing his/her position by accepting entertainment, money and goods, or any other tangible/intangible benefits from business partners, etc., or accepting personal compensation or commissions in relation to the business.
5-5 Transactions with subcontractors
With respect to subcontracting, Yamaha will observe its obligation as a primary subcontracting entrepreneur as defined in the Act against Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors, and shall not engage in prohibited unfair conduct by abusing its dominant bargaining position.

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6.RELATIONSHIP WITH COMPETITORS

6-1 Compliance with antitrust law
Yamaha will not engage in unreasonable restrictions of competition and/or unfair practices prohibited by applicable antitrust law.
6-2 Prohibition against inappropriate comparative advertising
Yamaha will not knowingly injure the reputation of the products and/or services of other companies nor use false or deceptive forms of comparison in its advertisements.
6-3 Respect for intellectual property rights
Yamaha will respect intellectual property rights owned by others and will follow legitimate means and procedures for the acquisition when it seeks to use such intellectual property.
6-4 Legitimate and appropriate acquisition of information
Yamaha takes legitimate and appropriate measures when it obtains undisclosed information of its competitors (e.g., corporate information, marketing information, patent information, etc.) and uses such information appropriately.

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7.RELATIONSHIP WITH ADMINISTRATION AND POLITICIANS

7-1 Transactions with government and public officials
Yamaha conducts transactions with government and/or public officials fairly and in accordance with public bidding rules and other prescribed rules and procedures.
Furthermore, Yamaha strictly refrains from such behavior that could be deemed as bribery of government officials or quasi-government officials.
7-2 Prohibition against gift giving to and entertainment of government officials, etc.
In principle, Yamaha does not offer gifts, entertainment or other items of value to officers or employees of governments and/or public offices. Yamaha complies with the rules and regulations of the governments and/or public offices, including, but not limited to the National Public Service Ethic Act etc.
7-3 Political Contributions
Yamaha shall comply with Public Offices Election Act, Political Funds Control Act, and other relevant political laws and regulations. It shall not make any contribution to a politician in person since it is prohibited by law, and to a political organization or party, in excess of the permissible amount under the law.
7-4 Response to government authorities
Yamaha fully cooperates with courts, police, tax authorities and other government authorities when such authority legally requires such report or notification except when there is a restriction by reason of confidentiality obligation.

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8.COMPLIANCE IN INTERNATIONAL TRANSACTIONS

8-1 Understanding business partners' local cultures and legal systems
In every country where Yamaha conducts business, we understand and respect their culture and comply with the laws of the country where we conduct our business.
8-2 Compliance with import and export regulations
Yamaha complies with proper customs procedures according to the relevant import and export laws and regulations. Moreover, Yamaha does not trade in goods whose export or import is prohibited by international treaties.
8-3 National security-related trade control
Yamaha hopes for global peace. Yamaha observes the applicable security-related trade control regulations that have been set out to prevent proliferation of weapons of mass destruction and accumulation of other weapons. To that end Yamaha will develop and comply with internal procedure rules.
8-4 Avoid dumping, etc.
Yamaha exercises due care in setting prices for its products and services, and prepares and maintains evidential documents for the proof of adequate pricing in order to avoid being subject to anti-dumping measures and transfer-price taxation in every country.
8-5 Prohibition against gift giving to foreign government officials
Yamaha, in principle, prohibits providing illicit benefits including corporate entertainment of and gift giving to foreign governmental officials. Such prohibition is not limited to cases where local laws of the relevant countries prohibit such entertainment and/or giving to their government officials, but rather it is the general rule of Yamaha.

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9.YAMAHA EMPLOYEES' CODE OF CONDUCT

9-1 Maintaining dignity
We strive to maintain dignity as employees of Yamaha and act so in good faith. We will not take or get involved in any antisocial activities that may harm our company's reputation and damage its brand image.
9-2 Enhancement of brand trustworthiness
We acknowledge that Yamaha's business activities and success rely heavily on the brand image of Yamaha, and we endeavor to enhance the trustworthiness and goodwill of the Yamaha brand through our business activities. In addition, we use the Yamaha brand properly in accordance with the established and prescribed rules.
9-3 Avoidance of conflict of interest
We do not engage in personal activities that are against the interests of Yamaha or those of any other company to which one belongs. When conflict of interest is likely to be an issue, it is necessary to report or consult on the matter beforehand to avoid any problem.
9-4 Strict adherence to duty of confidentiality
We will not illegally disclose information related to intellectual property under the administration of the company or confidential information obtained during one's performance of duties, whether or not such information is under one's direct control or responsibility, and such duty shall survive after the termination or retirement of one's employment.
9-5 Cooperation with audit
We will actively cooperate with all audits and inspections, including audits by outside auditors, corporate auditors and audit departments, etc. based on laws, regulations and rules adopted by the corporation, and accurately respond or submit information based on fact. Furthermore, when such audits, etc. disclose a need for improvements, we will immediately follow up such requests unless there are reasonable grounds for objection.
9-6 Response to mass media
When an employee is asked by any media about matters related to the company, he/she should politely direct such requests to the Corporate Communication Division (public relations) in charge and should not make any personal comments or remarks or reports as to what he/she may have seen or heard within the company without prior permission of the Company.
9-7 Appropriate utilization of company's assets
We will utilize the company's buildings, facilities, office equipment and any other company property with due care, and limit the use of the same by employees solely for business purposes.
9-8 Utilization and management of the company's information systems
When we utilize the company's information systems and equipment, we will observe the internal security regulations in order to prevent unnecessary distribution of internal information, and take appropriate protective measures against infringements by those outside the company.
9-9 Responsibility for Personal Usage of Social Media, etc.
When we personally participate in social media or log on to internet web sites, we should be responsible for what we say and keep in mind to act in a socially responsible manner and with good sense

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Third-Party Opinion

We obtained an opinion from a specialist to assist in improving the CSR Report.

Editorial Policy

Editorial policy for the CSR report.