With SMK, about 70% of total production activities are made outside Japan. Ethnic groups, languages, history and culture are all different and no same commercial practice and senses of value are shared among the production locations. As a company active abroad, we at SMK must fulfill social responsibilities such as complying with laws, protecting the environment, respecting human rights, and providing an appropriate working environment in the said countries. To this end, before employees leave for a new post at an overseas office, SMK provides them with education on that country's people, religion, culture and customs to ensure smooth cooperation with local workers.

■Response to conflict minerals

Using conflict minerals is globally considered as a problem. Although Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act does not apply to SMK, we try not to use conflict minerals. We also monitor whether actions contrary to social responsibilities have been taken by local trade partners and companies we are associated with, and provide guidance in such cases. Thus, we ensure transparency of the supply chain in cooperation with our business partners.