Risk of reputational damage and suspension of transactions due to social responsibility issues

「At the Group’s own manufacturing sites, the headquarters Sustainability Promotion Group takes responsibility for conducting an annual CSR self-check, labor and corporate ethics assessments, and CSR internal audits, as well as CSR audits by third-party organizations at frequencies determined for each site.」

「The Group has identified “advancing solutions to social and environmental issues” as one of the TDK Group’s materiality issues, established “respect for human rights” as a theme under it, and is implementing this initiative globally.」

「The Group has identified “supply chain management” as one of the TDK Group’s materiality issues, established “responsible sourcing” and “social and environmental considerations in the supply chain” as themes under it, and is implementing these initiatives globally.」

「Regarding the Group’s approach to human rights issues, TDK is committed to respecting human rights under the TDK Code of Ethics and explicitly prohibits forced labor in any form. The TDK Group Human Rights Policy also sets out the Group’s approach to respecting human rights, and in accordance with the policy, the Group conducts various supply chain surveys and audits and communicates with stakeholders.」

「However, despite the Group’s efforts, if issues related to occupational health and safety, such as environmental pollution or occupational accidents, or human rights issues, such as child labor, forced labor or discrimination against foreign workers, arise in the course of business activities, the Group’s social reputation could decline, and its business performance could be significantly affected by customers suspending transactions or the Group withdrawing from some businesses.」