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VECTOR Group Basic Policy on Human Rights

The VECTOR Group will work to establish a corporate culture that respects people, ensuring that all officers and employees respect each other's diversity, personality, and individuality and never discriminate or tolerate discrimination based on race, religion, nationality, age, gender, gender identity, sexual orientation, disability, or other characteristics, and that do not tolerate harassment that harms the dignity of individuals. In addition, we do not permit any and all forms of child labor and forced labor.
The Group has formulated this policy in accordance with the United Nations Guiding Principles on Business and Human Rights as a guideline for promoting efforts to respect human rights and fulfilling such responsibilities.

1. Scope of application
This policy applies to all officers and employees of VECTOR INC. and its consolidated subsidiaries.

2. Respect for and compliance with standards, laws and regulations
We will respect international standards on human rights, such as the United Nations International Bill of Human Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work.
We will comply with the laws and regulations of the countries and regions where the Group conducts its business activities. When the laws and regulations of such countries and regions differ with international standards on human rights, we will follow the higher standard, and when they conflict with international standards, we will pursue ways to ensure that the international standards are respected.

3. Duty to respect human rights
In our business activities, we will fulfill our duty to respect human rights by not violating the human rights of others and by addressing negative impacts on human rights should they arise.
Through our efforts to identify, prevent, and mitigate negative impacts on human rights, we will work to take appropriate remedies and corrective measures should it become clear that we have caused or contributed to any negative impacts on human rights.
We will continue to provide education and training on various human rights issues that may arise both in Japan or overseas to ensure that this policy is understood by officers and employees and becomes well established within the Group. We will also regularly disclose information, and engage in dialogue and discussion regarding our efforts to respect human rights with all relevant stakeholders.

August 2021
Saori Kiryu
Executive Vice President and CSO

Diverse Human Resources Supporting the VECTOR Group

Gender

Gender balance
55%
Gender balance
Ratio of female managers
38%
Ratio of female managers

Hiring and Appointing Diverse Human Resources

Percentage of employees with disabilities
2.6%

◆ Regular work assigned, rather than special duties
◆ High employment rate of people with mental disorders

Multinational background
11 countries

Employee Engagement Survey Results

The VECTOR Group considers the well-being of employees essential for sustainable growth and is implementing various related initiatives.
As part of our efforts to improve employee well-being, we have conducted an engagement survey to collect employee feedback, ascertain the status of the working environment, and identify issues. Survey outcomes are reflected in specific human resources initiatives. We will continue to improve employee engagement and well-being by monitoring each survey item on an ongoing basis and implementing different initiatives aimed at improving the working environment.

Survey target:
Employees of the VECTOR Group’s PR operating companies (ANTIL, Platinum, INITIAL)

Survey period:
1 week (December 2 to 9, 2022)

Survey method:
Questionnaire

Number of questions:
6

Content of questions:
(1) Does the workplace provide opportunities for learning and growth?
(2) Does the workplace enable you to take on new challenges?
(3) Do you feel the company’s business operations contribute to creating a better society?
(4) Do you feel your work is meaningful?
(5) Does the workplace enable you to make the most of your skills?
(6) Are there people in the workplace who encourage you to grow?

Response method:
Selection of a number between 1 and 10, where 1 represents “disagree” and 10 represents “agree.”

Calculation method:
The average point score is calculated for each question, where 1 (“disagree”) is considered one point and 10 (“agree”) is considered 10 points (perfect score). The average point score is then multiplied by 10 to convert to a 100-point scale.
* Figures are rounded to one decimal place

Survey results

(1) Does the workplace provide opportunities for learning and growth? 77.1pts
(2) Does the workplace enable you to take on new challenges? 80.5pts
(3) Do you feel the company’s business operations contribute to creating a better society?/th> 72.6pts
(4) Do you feel your work is meaningful?/th> 72.4pts
(5) Does the workplace enable you to make the most of your skills? 73.9pts
(6) Are there people in the workplace who encourage you to grow? 72.6pts

Analysis results (excerpt)
(1) Does the workplace provide opportunities for learning and growth?(77.1pts)
64.6% of respondents selected 8 or higher. Among them, 24.2% selected 10, 8.1% selected 9, and 32.3% selected 8. This result was attributed to efforts made in strengthening our Professional Training program, through which employees can learn comprehensively about a wide range of fields in accordance with their years of service and position. We will continue to enhance the content of this program.

(2) Does the workplace enable you to take on new challenges?(80.5pts)
77.4% of employees selected 8 or higher. Among them, 22.6% selected 10, 11.3% selected 9, and 43.5% selected 8, indicating that many employees felt the workplace enabled them to take on new challenges.
The VECTOR Group provides a working environment that supports employees in taking on new challenges. Once per week, we conduct New Business Meetings attended by three Group officers to have discussions with entrepreneurial employees. We also run events for pitching new business ideas at each of our subsidiaries, and we have established teams for the development of new businesses.
Going forward, we will further enhance the working environment to ensure employees can take on new challenges.

(4) Do you feel your work is meaningful?(72.4pts)
10% or more employees selected a number between 5 and 8. The overall score level was somewhat low compared to that of the other questions, and there was considerable variation among employee responses.
In SDGs-related projects, we are promoting initiatives based on our materiality to help resolve social issues through our business. By raising awareness throughout our group through such efforts, we will ensure that all employees understand our initiatives and work toward our vision of “making people happy by delivering excellent products, services and solutions to the world.”

Joining 30% Club Japan—a Campaign That Aims to Boost the Percentage of Women in Executive Positions

In March 2023, the VECTOR Group endorsed and joined 30% Club Japan, part of a global campaign that seeks to increase the percentage of women in corporate executive positions and decision-making bodies, including boards of directors.

Having defined the promotion of diversity and inclusion (D&I) as one of our material themes, we are working to create diversity, inclusion and belonging within the VECTOR Group by listening to all voices and fostering a culture of belonging and trust where everyone has a place to be themselves.
By joining 30% Club Japan, we aim to contribute to the sustainable growth of society and enhance our corporate value by ensuring diversity in our management and decision-making bodies.

30%Club Japan

30% Club Japan (established in 2019) https://30percentclub.org/chapters/japan-2/
・30% Club Japan aims to achieve a 30% representation of women on the boards of directors of TOPIX100 companies by 2030.
・It takes an integrated approach in which companies, institutional investors, governments, media, professional firms, executive search firms, universities, and other organizations collaborate to develop various initiatives that influence companies as well as society as a whole. It aims to achieve corporate diversity more comprehensively and efficiently.

Signing of the WEPs

The Women's Empowerment Principles (WEPs) are a set of principles established by the UN Global Compact and UN Women (a United Nations entity for gender equality and the empowerment of women) for actively promoting the active participation of women in the workplace. The VECTOR Group has endorsed the WEPs and has signed a statement to the effect that it will act in accordance with these Principles.

Since its foundation, the VECTOR Group has always had a culture of empowering women in the workplace with women making up more than half of the Group’s permanent employees. The Group’s ability to quickly create an environment where women can play an active role, where diverse viewpoints and values can be respected, has helped the entire Group to grow. Taking this opportunity to sign up to the WEPs, we will not only declare that we will work to empower women and promote gender equality both inside and outside the Company, but we will also step up our activities to promote diversity by asserting the Principles as a guideline for the entire Group.

The Seven Women’s Empowerment Principles

Management strategy Principle 1: Establish high-level corporate leadership for gender equality
Workplace Principle 2: Treat all women and men fairly at work – respect and support human rights and nondiscrimination
Principle 3: Ensure the health, safety and well-being of all women and men workers
Principle 4: Promote education, training and professional development for women
Market Principle 5: Implement enterprise development, supply chain and marketing practices that empower women
Society Principle 6: Promote equality through community initiatives and advocacy
Information disclosure Principle 7: Measure and publicly report on progress to achieve gender equality
WOMEN'S EMPOWERMENT PRINCIPLES