Based on the "Murata Philosophy," which is our management philosophy, Murata engages in fair business activities and hopes to continue to be a company which is trusted by society. In order to create value amidst changing business opportunities and achieve healthy and sustainable growth, we believe that observing compliance based on legal compliance, as well as a high degree of corporate ethics, is the foundation of growth. At Murata, we strive to raise awareness of compliance among all Group officers and employees through comprehensive observance of our "Corporate Ethics Policy and Code of Conduct."

Corporate Ethics Policy and Code of Conduct

Murata established the "Corporate Ethics Policy and Code of Conduct" in July 2002. This was revised in April 2007 to reflect a CSR perspective, and Group officers and employees united in promising to take appropriate actions with respect to stakeholders and society.

This revised "Corporate Ethics Policy and Code of Conduct" has been translated from Japanese into English, Chinese, and other local languages and distributed to Group officers and employees. It was also revised and tailored to the local laws and social systems in each overseas location.

A "Compliance Guidebook" was also created with related examples in a Q&A format to improve the understanding of the "Corporate Ethics Policy and Code of Conduct," and distributed to officers and employees at each site in Japan.

Link: Corporate Ethics Policy and Code of Conduct (PDF:145KB)Open in New Window

Compliance promotion systems

At Murata, we established a "Compliance Promotion Committee" underneath the CSR Management Committee, which is chaired by the President. The group deliberates and decides upon the policies around revisions to the "Corporate Ethics Policy and Code of Conduct" and the implementation of awareness-raising activities. The matters decided by this committee are deployed to the entire Group through persons in charge of promoting compliance appointed at affiliated companies in Japan and overseas.

A "Compliance Promotion Leader" is also selected in each department to help raise awareness of the "Corporate Ethics Policy and Code of Conduct" among employees. These leaders hold compliance promotion meetings in each department to share knowledge obtained through attending e-learning classes, group training, and other sessions with employees.

Moreover, these compliance promotion systems are determined according to the "Compliance Program Rules."

The status of compliance promotion activities and overview and number of reported “whistleblowing” cases are reported to the Board of Directors twice a year and are also audited annually by the internal audit department to ensure an appropriate level of response.

Compliance promotion system (As of April 1, 2021)

Whistleblowing System

In order to prevent, achieve early detection, and respond to compliance violations, Murata has introduced a whistleblowing system within Murata Manufacturing and its domestic and overseas affiliated companies. If events such as antitrust violations or bribery that violate or may violate the "Corporate Ethics Policy and Code of Conduct" are discovered, the whistleblower may report or consult about those acts using their real name or anonymously. In addition to establishing an internal compliance hotline within Murata Manufacturing and its domestic and overseas affiliated companies as a point of contact for receiving reports and consultation requests, we have established external compliance hotline which provides support in local or multiple languages in order to prepare an environment which makes it easier to submit reports and seek consultation. Moreover, employees can also directly report or consult with the Audit and Supervisory Committee which audits and supervises the overall execution of corporate affairs. Employees are informed through the intranet and posters about how to contact and use these hotlines.

In the event that a report or consultation is received, the Compliance Promotion Committee, chairperson of the committee, and the secretariat of the committee, will lead the response. Coordinating with the relevant departments as needed, they verify and investigate the facts of the matter and the relevant laws and rules to the extent possible. Moreover, they will certify whether a compliance violation exists and take measures such as corrective instructions and recurrence prevention measures as needed.

The privacy of the whistleblower shall be protected and reprisals against that person are strictly prohibited. Murata will extend the maximum consideration so that they do not suffer any unfair disadvantages they may incur because of filing the report. In addition, when reports or consultation requests are made in the whistleblower’s actual name, feedback on the status and results of the subsequent verification and investigation shall also be provided to the whistleblowers.

During FY 2020, approximately 150 reports and consultation requests were received through the domestic compliance hotlines.

Compliance promotion activities

Training and education about "Corporate Ethics Policy and Code of Conduct"

At Murata, we continuously train and educate all Group officers and employees based on the "Corporate Ethics Policy and Code of Conduct." More specifically, the President issues messages to spread an understanding of the importance of compliance and what it entails throughout all the company’s global offices. We also implement initiatives such as those described below.

In addition to training provided when joining the company or leaving for a new post in charge of an overseas affiliated company, every year during the month of October, which is designated as the compliance promotion month, we (1) implement group discussions using the case method, (2) conduct compliance verification tests, (3) take compliance attitude surveys, and (4) disseminate compliance information including the distribution of portable cards with compliance reporting and consulting service information. Moreover, each month we issue the "Compliance Magazine" to the employees as part of our efforts to increase employee awareness of violations of corporate ethics and the law such as insider trading, cartels, bribery and information leaks. Compliance seminars were also held in 2020 for officers and department heads within Japan. During these sessions, participants held group discussions to consider compliance risks that may occur in their own workplaces and how to respond to these risks (approximately 230 people attended). Furthermore, during the compliance promotion month, each department head issued compliance messages to their own departmental employees and held the compliance seminars described above (number of participants: approximately 15,500 people).

Overseas, the regional head office and affiliates implemented training and educational activities based on local topics and concerns.

Compliance program for fair business transactions

Murata's "Corporate Ethics Policy and Code of Conduct" defines how we engage in appropriate transactions with suppliers, how we comply with antitrust laws, and how we prevent bribery and corruption. We aim to engage in fair business transactions with these practices serving as a foundation for our daily business activities and duties. We also promote the implementation of the following compliance program related to fair business transactions.

Initiatives to prevent antitrust violations

In May 2014, Murata established the "Basic Policy for Prevention of Cartels" as an addendum to the "Corporate Ethics Policy and Code of Conduct." This has been translated into English and Chinese, and awareness of this policy was communicated through messages from top management stating Murata's stance on preventing cartels. To prevent cartels, global rules have been set stating that (1) contact with competitors must be avoided whenever possible and (2) approval must be obtained in advance in situations requiring contact with competitors. A control process requiring that officers and employees apply for approval and report their actions in such situations has been established for use throughout the entire Group. In addition to creating guidelines that include these internal rules and procedures, officers and employees are made aware of this information through either in-person or online (approximately 5,000 individuals took e-learning classes in FY 2020) training. We also regularly check the operational status of the control process.

Link: Basic Policy for Prevention of Cartels and Bribery (PDF: 98KB)Open in New Window

Initiatives to prevent Subcontract Act violations

Link: See details on "Responsibility to and Actions Concerning Suppliers."

Initiatives to prevent bribery

In May 2014, Murata established the "Basic Policy for Prevention of Bribery." This has been translated into English and Chinese, and awareness of this policy was communicated through messages from top management stating Murata's basic stance on preventing bribery. Rules on actions such as exchanging gifts or business entertaining are defined based on the policies established in this basic policy, and activities of officers or employees are managed to prevent unlawful benefit for the purpose of dishonest profit from being provided or received, and to prevent facilitation payments from being made. Each year, Murata obtains the individual commitment of officers and employees to comply with the basic policy, conducts online training so that we can respond to changes in compliance requirements (approximately 7,300 individuals took e-learning classes in FY 2020). We also continue to expand on in-house training as a general form of training, hold segmented e-learning classes by level, and provide education regarding foreign and domestic laws, prohibited matters, and the risks of illegal conduct, etc.

Link: Basic Policy for Prevention of Cartels and Bribery (PDF: 98KB)Open in New Window