In order to develop a positive relationship with the society and to clarify the social responsibility as an openly-managed company, TSE has established the charter of corporate behavior as a statement of universal values based on the standpoint of corporate ethics. TSE will continue to fulfill its role in society by carrying out fair and transparent corporate activities in accordance with the principles of this charter.
I declare that all executives and employees of TSE will observe and exercise this charter, make contributions to the wider society, and continue to develop as a corporation.
December 2004
Takuo Tsurushima
President & CEO
Tokyo Stock Exchange, Inc
Basic Principles
We fully acknowledge the social responsibility of Tokyo Stock Exchange, Inc.(TSE) and our mission of working for the public interest, and we will fulfill the expectations upon us as a stock exchange to strictly comply with all laws and regulations. We will strive to gain further confidence and respect from the public by improving our relationship with members of society at large. To increase TSE's corporate value, we shall engage in various activities with stakeholders such as investors, and we will be an integrated part of society.
Our relationship with society
Compliance with laws and regulations
We shall strictly observe and obey all laws and regulations including the Commercial Code and the S ecurities and Exchange Law. Furthermore, we shall carry out corporate activities that follow social ethics and best practice models and will take all possible measures to prevent any problems from arising.
Activities to contribute to society
As a good corporate citizen, we aim to contribute to the public by carrying out corporate activities independently and positively to promote a better society. Furthermore, we shall encourage and support our executives and employees to engage in activities that benefit society.
Maintenance of a stable system infrastructure and t horoughness of risk management
We are well aware of our vital role as the central securities market in Japan , and recognize that stable operation of our system infrastructure as our top priority. We manage our market considering the potential adverse effects of natural disasters and other unexpected events, and we have measures in place that will allow us to continue operations while minimizing any adverse effects of such events.
Corporate activities that consider the natural environment
We will aim for a society in which economic development and the protection of the environment can be compatible in a sustainable manner. By reducing the use of energy and resources, reducing waste, and promoting recycling, we will make efforts toward industry being able to co-exist with nature.
Sound relations with political and governmental entities
We will maintain strictly official relationships with all political and governmental entities, and shall avoid any illegal deeds and deeds that could be interpreted as being a collusive relationship with those entities.
Resolute attitude toward socially damaging groups
We shall face individuals and groups involved in activities that threaten the public and its safety with a resolute attitude. If we should receive any unjust demands from these individuals and groups, we will not submit to their demands, and we will handle the situation in a determined manner.
Our relationship with investors, listed companies and trading participants
Provision of high quality services
As a public infrastructure that supports economic activity we will not only meet the demands of the times accurately and swiftly, but we will also provide a variety of services to fulfill the needs of investors, listed companies, and trading participants.
Role as a s elf-regulatory organization
In order to protect investors we will maintain and carry out transactions of securities efficiently, and we will improve our function as a self-regulatory organization to further increase the attractiveness of the securities market.
Fair and legal transactions
We shall observe and obey all laws and regulations regarding corporate activities, including Antitrust L aws. We will be highly ethical in conducting trading in a fair and legal manner and we will not pursue profits by using unjust methods.
Distinction between official and personal matters, prohibition of providing facilities or conveniences
We shall draw a distinct line between official and private matters. We will not engage in any dining or gift exchanges with business associates that exceed minimum levels of courtesy . Furthermore, we will not exchange any inappropriate services or benefits with public institutions or business relations at home or abroad.
Our relationship with shareholders
Timely and appropriate disclosure of corporate information
We constantly communicate with the public, and through the timely and appropriate disclosure of management information we will fulfill out corporate duties and ensure the trust of our shareholders.
Prevention of insider trading
Actions that conflict with insider trading regulations lead to the loss of fairness and trust in the entire securities market, and therefore we will take firm action on activities that could be seen as unfair. Furthermore, we shall reiterate the relevant regulations to business acquaintances outside of TSE.
Our relationship with employees and corporate assets
Respect of human rights and prohibition of discriminatory treatment
We will consider individual human rights and safety in the workplace in order to ensure that employees can fulfill their potential in a pleasant and rewarding workplace free from discrimination and harassment.
Effective use and protection of corporate assets
We will put corporate assets to effective use. We will fully recognize the equity value of corporate assets, especially intellectual properties that TSE has developed as a knowledge industry, and make the best efforts to protect those properties through such measures as proactive registration based on the applicable laws. Furthermore, we shall avoid behavior that constitutes a conflict of interests for the company. We will respect the property rights of other persons and other companies including intellectual properties, and will not infringe upon those rights or use others properties illegally.
Strict management of personal information and confidential information
We will thoroughly protect all third party information including personal data acquired in the conduct of business, and it will neither be leaked nor used for anything other its primary purpose. Additionally, we manage information acquired in the conduct of business to prevent leaks not only to outside of the company but also to unrelated executives and employees.
Sound corporate ethics
In order to fulfill the social role entrusted to us by the public, TSE management will take all necessary actions to implement the principles of this charter, and shall promote awareness within the company as well as prepare an effective company structure. If by any chance the principles of this charter are violated, management will clarify the responsibility for the violation and deal with the situation in a strict manner.
