CTC’s corporate philosophy is enshrined in the Three Corporate Principles – corporate responsibility to society, integrity and fairness, and international understanding through trade. Guided by this philosophy, CTC is strengthening its management system with the aim of achieving sustained growth. In addition to mandatory organizations and governance systems, CTC is improving and strengthening its corporate governance system in various other ways. Actions include appointing outside directors, introducing executive officer system and setting up advisory committees to the Board of Directors.

So as to ensure that business activities are conducted properly and in conformity with laws and the Articles of Incorporation, CTC’s efforts are ongoing to reform and improve an internal control system covering; efficient business execution; compliance; risk management; financial reporting; management and storage of information; ensuring proper operation in group management; internal auditing and monitoring; and corporate auditors.

Based on its Three Corporate Principles, CTC has established internal rules on compliance, such as the Corporate Standards of Conduct and Code of Conduct. All CTC employees are obligated to conduct their business activities with the strictest consideration and adherence to these rules. CTC has also introduced a Compliance Officer System to ensure it remains fully aware of this vital issue in its day to day operations. In 2008, CTC carried out compliance risk analyses for each Business Group’s organizations at Head Office and assessed the level of compliance awareness among its staff. Through these activities, CTC checked which business areas need more attention, confirmed that compliance-related activities are a fundamental part of its daily business activities, and gathered proposals on strengthening its compliance systems. As an important strategy for raising corporate value on a consolidated basis, CTC will continue to upgrade and reinforce compliance initiatives in order to install awareness of these issues in its people, including employees of CTC’s subsidiaries and affiliated companies.

CTC is promoting a wide range of environmental and CSR focused activities that cove various fields and geographical regions in order to grow together with the communities that are works in and to help build sustainable and prosperous society for the future. Greater expectations from society have motivated CTC to further strengthen these efforts, and to further develop businesses aimed at sustainable growth and development.

In the environmental field, CTC recognizes climate change as an important issue to address and is working within its own capacity to reduce its own CO2 emissions as well as Group company emissions. In terms of businesses, in April 2009, CTC established the Corporate Development Division in order to engage in businesses that will drive the Company’s growth in the years ahead. Through the development of clean energy, including solar and wind power, and biomass fuel businesses, CTC will continue to contribute in many ways to the realization of a low carbon society. In March 2008, CTC established the CSR & Environmental Affairs Advisory Committee, which is made up of eight respected external professionals from various environmental and CSR-related backgrounds. This committee meets regularly throughout the year and offers wide-ranging advice on issues related to the environment, CSR, social contribution activities and other related matters.