Over the last few years, we have been witnessing -- both in and outside Japan -- an increasingly strong and complex demand for corporate social responsibility (¹CSR). Since 2005, we have published "CSR Reports" to present the basic policy, plans and performance of the Murata Group's CSR activity.
On the other hand, our ²compliance promotion activity, initiated in 2002, has been connected with our CSR activity, and now it is defined as one aspect of CSR. In connection with this, we have entirely revised "Murata Corporate Ethics Policy and Code of Conduct."
The revision has the following objectives:

1. To clarify that Murata, Murata Group companies and our directors and employees will act as a single unit and declare our commitments to our stakeholders and society.
2. To make the Code of Conduct simple and easy to understand so that we can quickly find relevant items as the need arises.
3. To reflect newly-established or revised laws and regulations as well as social changes that have taken place since the establishment of the initial version of the Code of Conduct in 2002.

The goal of our compliance promotion activity is not only to understand the Corporate Ethics Policy and Code of Conduct, but also to establish it in our management culture, though constantly practicing it in each employee's daily business activities. This requires collaboration among Murata, Murata Group companies and our directors and employees. Let us continue to work together to fulfill the social demand for CSR.

In the spirit of the Murata philosophy, Murata Manufacturing Co., Ltd., the member companies of the Murata Group and our directors and employees establish and comply with the Murata Corporate Ethics Policy below:

• We will respect laws, regulations and fair social rules in the countries where we conduct business as well as their philosophy and act in good faith while maintaining the highest ethical standards.
• We will create excellent technologies and products to achieve customer trust and satisfaction, and through which contribute to realizing a prosperous society.
• We will respect each employees' personality and human rights and provide a safe and comfortable working environment oriented toward open communication.
• We will positively provide information about our business to enhance corporate transparency.
• We will conduct activities for improving the global environment in a positive and voluntary manner.
• We will,as a good corporate citizen, strive to achieve co-prosperity with our stakeholders including customers, shareholders, investors, business partners, as well as governments, communities and society.

On the basis of our Corporate Ethics Policy, we formulate the Code of Conduct as guidelinesfor our everyday business activities. But we know no code of conduct can cover all possible situations, and even in the situations provided in the Code of Conduct, we may have questions, hesitations and mental conflicts in dealing with the real situations. At such times, we will ask the following questions to ourselves to make the right decision:
"Aren't we going to sacrifice law and its spirit for short-term interest?"
"Do we maintain sincerity towards our customers and stakeholders?"
"May this be inappropriate in terms of common sense in society, though it's a common practice at Murata?"