Supplier Ethics and Rules of Conduct

In order to maintain a balance between the environment, society, the economy and sustainable development, BB Backbone Corp. carries out independent initiatives founded on a “Corporate Social Responsibility” (CSR) perspective in activities and transactions with all concerned parties (shareholders, employees, customers, business partners, suppliers, and governments) while also requesting concerned parties in the supply chain to act from a CSR perspective.

Originally, CSR was a voluntary initiative carried out by individual companies. However, in order for BB Backbone Corp. to provide safe, highly reliable, and high value products and services to customers, it is essential that we have the cooperation of each business partner and supplier within our supply chain.

Based on this idea, we have established the “Supplier Ethics and Rules of Conduct” and request that suppliers proactively strive to abide by these rules.

Furthermore, when it comes to following these rules, we ask that all business partners and suppliers comply not only within their own companies but extend this initiative to include their own suppliers.

Compliance items for suppliers

1.Consideration for the environment

• Proactively strive to improve efficiency when using limited resources (for example, energy, water, and raw materials).
• Establish the appropriate management, execution, and technical means of control to minimize the release of harmful waste products into the environment and strive to prevent environmental pollution.
• Promote initiatives which consider climate change including reductions in greenhouse gas emissions (such as carbon dioxide, methane, dinitrogen oxide, chloro-fluorocarbon gas).
• Conduct business activities with concern for impacts on biodiversity.
• Contribute to the creation of a recycling-based society by proactively collecting waste materials and engaging in recycling activities. Moreover, comply with the relevant laws and regulations concerning all waste materials discharged by business activities and take responsibility for emitting waste.
• Promote initiatives to develop and provide environmentally friendly product design (eco-design) and services to reduce environmental impacts.

2.Information security

• Strictly manage and protect private information within your own company as well as that of customers and third parties.
• Strictly manage the confidential information of other parties acquired during the course of business while also preventing the leakage of such information to third parties without permission.
• Safeguard against computer viruses and other network risks and threats as well as implement measures to prevent their impact from spreading.

3.Fair competition

• Do not engage in any form of bribery, including the inappropriate distribution of money to employees or from employees and organizations.
• Comply with the laws and regulations relating to fair transactions including the Antimonopoly Act and the Subcontract Act to prevent late payments to subcontractors.
• In the event that any transaction involves a conflict or potential conflict of interest, including BB Backbone Corp.'s executives, employees, or their family members are executives or major shareholders of a supplier or its own suppliers with respect to transactions with BB Backbone Corp. such information shall be reported to BB Backbone Corp.

4.Ensure quality and safety

• Supply products which meet the safety standards stipulated by laws and regulations, Build a quality assurance system and operate it in a strict manner.
• Establish and strictly operate a quality assurance system.
• Provide accurate information concerning products and services.
• Understand the quality and features required by users and the general public and supply products that meet those expectations.
• Strive to provide products and services that contribute to the maintenance of communication networks and the improvement of communication quality.

5.Consideration for Human Rights

• In accordance with international human rights principles, do not be involved in discrimination or human rights violations in all services, products and business activities.

6.Occupational safety and health

• A healthy and safe working environment must be provided to employees according to international standards and laws and regulations.
• A living environment which appropriately ensures safety and health must be provided to employees.
• Provide the appropriate information and training concerning safety and health to employees while also providing suitable support when an occupational accident occurs.

7.Prohibition of child labor

• Do not employ persons who are below the working age permitted by law.

8.Prohibition of forced labor

• Employees must not do forced, binding, or subordinate labor, and shall be able to freely resign after giving a reasonable period of notice.

9.Prohibition of discrimination and inhumane treatment

• Eliminate all forms of discrimination. In addition, strive to achieve fairness.
• Employees shall be treated with respect and dignity and shall not be subject to physical or verbal abuse, harassment, threats, or any form of intimidation.

10.Working hours

• Employee working hours shall comply with laws and regulations, and suppliers shall strive to reduce excessive working hours.
• Consider the occupation, duties, and circumstances of the country in which the labor is performed with respect to reasonable working hours.

11.Fair payment

• Employees must understand their own employment conditions, and be provided with fair and reasonable wages and conditions.
• Secure living funds that exceed the legal minimum wage requirements in the country where employees work shall be observed.

12.Freedom of association

• Employees have the legal right to freely associate or not associate, and the right to collective bargaining shall be respected.

13.Responsible mineral procurement

• The tantalum, tin, tungsten, and gold included in products must not be sourced from rebel forces that are infringing on human rights in the Democratic Republic of the Congo and surrounding countries.

14.Coexistence with local communities

• Promote efforts to contribute to society for coexistence with local communities.