Governance

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 new forms of value and achieve robust, sustainable growth amidst changing business opportunities, we believe that observing compliance based on legal compliance and a high degree of business ethics boost stakeholder confidence and serve as the foundation for robust 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."

At Murata, we have established a "Compliance Promotion Committee" underneath the CSR Management Committee chaired by the President, and in 2024 this organization made significant changes to our "Corporate Ethics Policy and Code of Conduct".
The organization also raises awareness of our "Corporate Ethics Policy and Code of Conduct", proposes and implements corruption prevention initiatives, and deliberates and decides on the general direction of global compliance promotion. The matters decided by this committee are shared with the entire Group by those in charge of promoting compliance appointed at affiliated companies in Japan and overseas.

The "compliance promotion leader" selected for each department also shares and delivers the information provided in the "Corporate Ethics Policy and Code of Conduct" and at e-learning and group trainings at their department compliance promotion meetings.

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

Compliance promotion activities are reported to the Board of Directors twice a year, and are also audited annually by the Internal Audit Department to ensure the appropriateness. Group companies are also being audited by Responsible Business Alliance (RBA)-approved auditors.

Link: Murata’s Corporate Governance System

Information on supplier compliance can be found on the following page.
Link: View details on supplier compliance

“Corporate Ethics Policy and Code of Conduct”

Murata established its “Corporate Ethics Policy and Code of Conduct” in July 2002, and Group officers and employees united in promising and declaring that they will take appropriate actions with respect to stakeholders and society. In April 2024, Murata has made revisions by applying sustainability perspectives based on the expectations and requests from society, and ensures its officers and employees fully comply.

Murata has translated the "Corporate Ethics Policy and Code of Conduct" into Japanese, English, Chinese, and other local languages and distributed copies to all Group officers and employees. This is also managed according to local laws and social systems in each overseas location.

The "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 this guidebook was distributed to officers and employees at each site in Japan.

Murata routinely revises the "Corporate Ethics Policy and Code of Conduct" and also takes measures to mitigate risks for each "Corporate Ethics Policy and Code of Conduct" compliance item in response to changes in the business environment and business.

In addition to work performance, conduct and processes are also evaluated, and compliance with the "Corporate Ethics Policy and Code of Conduct" is taken into account for the performance review and compensation of individuals.

Link: Corporate Ethics Policy and Code of Conduct (PDF:4.10MB)

Compliance training

At Murata, we train and educate all Group officers and employees (including temporary and part-time employees) on an ongoing basis based on the "Corporate Ethics Policy and Code of Conduct" to instill compliance awareness. Each year, the President issues video messages in three languages (Japanese, English, and Chinese) throughout the entire Group both domestically and overseas, in order to spread an understanding of the importance of compliance and share a common awareness of what compliance entails.

In addition to the training provided when joining the company or leaving for a new post in charge of an overseas affiliated company, October of each year is designated as a compliance promotion month. We also conduct the following activities domestically and overseas based on our "Corporate Ethics Policy and Code of Conduct" to further spread compliance awareness.

• "Corporate Ethics Policy and Code of Conduct" e-learning
• Compliance awareness surveys
• Distribution of portable cards with the compliance reporting and consulting service information
• Training on compliance for the management members
• Group discussions for those in managerial positions
• Group discussions by the case method
• Issuing "Compliance Magazine"

The results of the compliance awareness surveys are confirmed and analyzed by region and group company, and feedback is given for the results to improve the activities for the following fiscal year.

In order to promote compliance, each fiscal year, we issue the "Annual Compliance Training Guide", our annual compliance training plan, and conduct annual training on topics such as the following based on this training plan.

For instance, on the topics of bribery prevention and antitrust violation prevention, each year, Murata obtains the commitment of each individual officer and employee, conducts online training, and responds to changes in compliance requirements. Since 2021, we have also expanded in-house anti-bribery training as general training, and we have continued to provide training on topics such as foreign and domestic laws, prohibited matters, the risks of illegal conduct, etc.

Link: For details on the implementation of training, see here

Global compliance promotion activities

Murata has established and is operating a global compliance system led by our Compliance Promotion Committee to expand our compliance activities globally. Our regional headquarters act as the heads of the activities in their respective regions, taking into account the local laws, regulations, and social systems, and conduct compliance activities in cooperation with our group companies in each region.

Initiatives and policies

In order to engage in fair business practices and continue to be trusted by society, Murata's "Corporate Ethics Policy and Code of Conduct" defines how to prevent bribery, antitrust violations, Subcontract Act violations, insider trading, conflicts of interest; implements security export controls; and prevents other types of corruption (such as inappropriately providing or receiving benefits). Murata strives to ensure compliance and prevent bribery as the foundation of our daily business activities and duties. Corruption is handled following a risk evaluation conducted by each responsible department, and the results of this evaluation are reported to and discussed by the Risk Management Committee chaired by the President. If acts that violate or could violate the "Corporate Ethics Policy and Code of Conduct," laws, regulations, or ethics (corruption risks) are discovered through training or awareness-raising activities, they must be reported to the relevant department or reporting/consultation service immediately.

We require our suppliers to maintain a zero-tolerance policy that prohibits corruption, corrupt practices, extortion, and embezzlement of any kind, including all types of bribery, as defined in our "Supplier Code of Conduct" in the "Murata Group Supply Chain CSR Procurement Guidelines". When starting business with a supplier, Murata and the supplier sign a "CSR Agreement" to obtain the supplier's agreement to the contract. In the case that any corruption risks are discovered through business with Murata group companies, they are encouraged to be promptly reported to the corresponding consultation service.

Link: Corporate Ethics Policy and Code of Conduct (PDF:4.10MB)
Link: View details on supplier selection criteria
Link: View details on the Supplier Code of Conduct
Link: View details on the Whistle-blowing system
Link: View details on the Consultation Window for Business Partners (suppliers)

Initiatives to prevent corruption risks

In order to prevent, early detect, and respond to compliance violations, Murata Manufacturing and our domestic and overseas affiliates have adopted and put in place a whistle-blowing system to receive reports and consultations from Group’s officers and employees (including temporary and part-time employees) and their families. If acts that violate or could violate the "Corporate Ethics Policy and Code of Conduct," laws, regulations, or ethics are discovered, including acts of corruption such as bribery or conflicts of interest, the individual submitting the report may report or consult about such acts either anonymously or using their real name. In addition to establishing internal hotlines within Murata Manufacturing and its domestic and overseas affiliated companies as a point of contact for receiving reports and consultation requests, we have established a multilingual support external compliance hotline to receive support in their native languages. External compliance hotline can contact this service through multiple means including phone, email, and online (24 hours a day, 365 days a year). In this way, we have established an environment that makes it easy for employees to submit reports and receive consultation. We have also established a "Harassment Consultation Hotline" specifically for reporting and consultation regarding harassment and a "Audit and Supervisory Committee Hotline" for direct reporting and consultations to the Audit and Supervisory Committee, which audits and supervises the overall execution of the company's corporate affairs.
Group’s officers and employees are periodically informed regarding how to contact and use these services and are encouraged to use the services through such means as the intranet, posters, training, and portable cards. In order to make it easier to submit reports and receive consultation, we also answer questions and provide consultation on how the whistle-blowing system works.
We have also established "Consultation Window for Business Partners (suppliers)" to receive reports and consultations from our suppliers. The dedicated contact e-mail address is provided to the supplier when they start conducting business with Murata, and they are informed regarding the services and encouraged to use them. The supplier submitting the report may use their real name or remain anonymous.

The design and operation of the whistle-blowing system are regularly reviewed and revised based on the results of attitude surveys on compliance understanding and whistle-blowing system usage (conducted domestically and overseas each year) and through reviews in departments responsible. The whistle-blowing system operation status (number of reports and report summaries) is regularly reported to the Board of Directors and the Audit and Supervisory Committee in a format that does not identify the informants.

Link: View details on the Consultation Window for Business Partners (suppliers)
Link: View details on the Harassment Consultation Hotline

Response systems

In the event that a report or consultation is received, under the supervision of the Compliance Promotion Committee Chairperson, the Compliance Promotion Committee Secretariat carefully and quickly reviews the information, decides an appropriate initial response, and confirm and investigate the facts of the incident and any relevant laws, regulations, and rules to the extent possible, coordinating with relevant departments as needed. If it is determined that a compliance violation has occurred, corrective or remedial measures are implemented, such as improving a business system or rule, or take disciplinary action against the violator. Even if it is determined that no compliance violation has occurred, appropriate measures are also taken as necessary. In addition to protecting the anonymity and privacy of whistle-blowers, we take steps to prevent whistle-blowers from being unfairly disadvantaged by their reporting by prohibiting retaliatory actions against whistle-blowers and making this known to employees. Whistle-blowers who report violations under their real names will be provided with findings and details in an appropriate manner. To the extent possible, whistle-blowers who report anonymously will also be given feedback.

During fiscal 2024, 222 reports and consultation requests were received through the domestic compliance hotline. Approximately 70% of all reports and consultation requests were related to harassment, human rights, or workplace issues. All reports and consultation requests were investigated to determine whether a compliance violation had occurred, and then handled appropriately as required, while taking the wishes of the individual submitting the report into consideration. In FY 2024, there were no violations required to be disclosed by law, and no fines or settlements were incurred that required disclosure in the audited financial statements.