From fiscal 2023, the Board of Directors has been briefed on monitoring reports on human resources, supply chains, safety, and brands, among others. Any input on these items is reported to and followed up on at the Corporate Strategy Meeting to ensure that they are reflected in our management. [...] Compliance Promotion System Compliance is a key foundation for an enterprise to achieve sustainable growth. The Nitto Group established the Nitto Group Business Conduct Guidelines (BCG), a code of conduct for its officers and employees that serves as the foundation and cornerstone of compliance. To promote compliance, we established the compliance department under the officer in charge of compliance, which collaborates with the heads of each site and Group company around the world. The compliance department adheres to BCG to guide all compliance decisions, providing business execution departments and Group companies with operational development and support, supervision, and monitoring, while business execution departments and Group companies report their self-check findings and risk identification results to the compliance department. The officer in charge of compliance is debriefed on the series of activities above and addresses significant matters by reporting to management at the Corporate Strategy Meeting or elsewhere, thus ensuring compliance. [...] Compliance Management System The Nitto Group maintains the compliance management system, with the compliance department serving as an executive office. In light of the extensive exposure of the Nitto Group's business both at home and abroad, a separate council is established for each of three layers: the whole Group, each region, and each site. These councils follow a PDCA cycle for every fiscal year to make continued efforts to raise the level of compliance and reduce associated risks. We have also established a system that allows each level of council to mutually share information, aiming to achieve autonomous management suited to regional and individual company circumstances and globally coordinated management. Other programs in this regard include compliance surveys for all Group employees, as well as pinpointing risks through self-checks and monitoring. As we refine the PDCA cycle by taking into account a broad range of information, such as environmental changes both within and outside the company, on top of the findings of such programs, we ensure that the effectiveness of our management system is enhanced.