Stakeholder Engagement

Stakeholder Engagement
Customers
Employees
Business Partners
Shareholders and Investors
Local Community

Stakeholder Engagement

Establishing long-term trusting relationships with our stakeholders

The goal of Brother is to carry out management that will create social value through business activities with the "At your side." To achieve this, as stated in the Brother Group Global Charter, we will develop long-term trust relationships with our customers and other stakeholders by further developing our business and fulfilling social responsibilities. All employees of the Brother Group act with this sense of value to continue to evolve Brother's CSR management.

Efforts to build long-term trusting relationships with respective stakeholders

Stakeholders	Brother Group Global Charter	Efforts
Customers	Place our customers first everywhere, every time, and provide them with superior value, by quickly creating and delivering high-quality products and services Quickly respond to the demands and expectations of the global marketplace	Take customer opinions as the starting point of our business activities and deliver products and services that meet customer needs Establish quality standards and evaluation methods for products and create reliable products Call the percentage of products sent back from customers for repair or return the "rate of product return and servicing," and pursue product quality improvement to reduce product defects close to zero Work in proper cooperation with partners to flexibly respond to diversified business tools, markets, and changes in customers' behavior
Employees	Respect diversity, provide a working environment that enables our associates to utilize their talents and abilities to the fullest, and give them great opportunity through challenging work assignments Provide our associates with fair, attractive financial rewards	Build systems and environments in which diverse human resources can demonstrate their abilities Support employees with disabilities by selecting "work and life consultants," who provide advice and other assistance for employees with disabilities, from among employees in respective factories Establish various systems, including homeworking and family-care leave systems, to support the work-life balance of employees Institute a target management system to provide fair evaluation and compensation Establish talent development systems, such as manager development and trainee programs Conduct an employee awareness survey annually to grasp and improve conditions, mainly to ensure employees are working energetically
Business partners	Act fairly with business partners and build strong, respectful working relationships for mutual growth	Make the Brother Group's "Procurement Policy" and "CSR Procurement Standards" publicly available to share the group's CSR procurement concept with suppliers Operates the "CSR Procurement Level-up Program" and continuously conducts CSR questionnaires to suppliers and improvement requests and monitoring based on the results Recognize outstanding CSR efforts by suppliers
Shareholders	Effectively utilize capital from shareholders to drive sustainable growth in corporate value and have regular, open communication	Provide the latest information to shareholders and investors through general meetings of shareholders and financial results briefings
Local communities	Share our social, economic and cultural resources in all the communities where the Brother Group operates	Globally promote social contribution activities with a sense of unity, especially focusing on eco-conscious activities and activities involving "communities" and "personal development (including employees)" Contribute to society through activities autonomously conducted by the group facilities in a way tailored to their local communities Provides support during large-scale disasters and pandemics
Environment	Help society achieve sustainable development, by positively and continuously considering the environmental impact of all aspects of our business operations	Create eco-conscious products Recover and recycle consumables and products Promote CO₂ emissions and waste reduction Properly manage chemicals and discharged water Implement environmental communication
Governance	Respect the culture, rules and spirit of laws, in all countries and regions where the Brother Group operates Act with the highest integrity Expect our associates to be positive members of society	Establish and strengthen governance in line with the "Brother Group Basic Policies on Corporate Governance" Conduct self-assessments by respective facilities and audits by the internal audit department to check the effectiveness of internal control Put the Compliance Committee and consultation centers in place and offer employees training to prevent the occurrence or reoccurrence of misconduct and enable early response to it Establish a framework for information management by setting up the Group Information Management Regulation, which is compliant with the Information Security Management System (ISMS)

Customers

The Brother Group places the customer first, everywhere, every time, demonstrating its motto; "At your side." By quickly and consistently providing superior value, the Brother Group builds strong, long-lasting relationships with customers, gaining their loyalty.

Please see below for details of specific initiatives

Employees

The Brother Group respects diversity, and provides a working environment that enables employees to utilize their talents and abilities to the fullest. The Brother Group gives them great opportunity through challenging work assignments, and provides them with fair, attractive financial rewards. In return, employees are expected to be positive members of society, share the Company's values continually learn and improve, maximize their capabilities, strive to achieve their goals, and ultimately, contribute to our success.

Please see below for details of specific initiatives

Business Partners

The Brother Group effectively delivers superior value to customers, acts fairly with business partners, and builds strong, respectful working relationships for mutual growth.

Please see below for details of specific initiatives

Responsible Supply Chain

Shareholders and Investors

The Brother Group effectively utilizes capital from shareholders and investors to drive sustainable growth in corporate value. Through regular, open communication, the Brother Group develops long-term, trustful relationships with its shareholders.

Communication with shareholders and investors

Brother Industries, Ltd. (BIL) aims to build long-term trust relationships with shareholders and investors and continuously improve corporate value. We are actively engaged in fair and transparent information disclosure and constructive dialogue with capital markets.
We actively inform our shareholders of the Brother Group's business performance and the latest topics through shareholder newsletters, meeting notices, and websites.
For institutional investors and securities analysts, BIL explains the group's financial results through quarterly briefings. In addition, the company actively makes investor visits and takes part in interviews.
In FY2020, in addition to quarterly detailed disclosure of business performance, business impact and response related to the spread of COVID-19, the executives in charge of the main businesses also participated in the online financial results briefing, they responded sincerely to questions from analysts and institutional investors. In addition, we were able to establish constructive communication with a large number of analysts and institutional investors by holding small meetings with the executives in charge of our main businesses on a quarterly basis. Furthermore, in response to requests from shareholders and investors, we have disclosed information on orders received for industrial equipment from the full-year financial results for FY2020, and in order to enhance information dissemination in English, we have translated and disclosed the entire Annual Securities Report.
As well as those efforts, On Wednesday, June 23, 2021, BIL held the 129th ordinary general meeting of shareholders at the hall of the Mizuho Factory, located in Nagoya City, with the attendance of 51 shareholders, and reported the Brother Group's business results for FY2020, and the issues to be addressed during FY2021. As with the previous time, various measures were taken due to the meeting being held in the midst of the COVID-19 pandemic. Among others, the number of attendees was reduced, shareholders were requested to avoid attending in person and recommended to exercise their voting rights in advance, some executives participated in the meeting online, PCR tests were conducted on the board members and secretariat staff who appeared on stage in advance, the temperatures of attending shareholders were measured at the entrance, and the like. All items on the agenda were approved and passed as drafted by a majority of the shareholders.

The 129th ordinary general meeting of shareholders

Brother Industries will continue to utilize the capital provided by its shareholders to continuously increase its corporate value, create opportunities to communicate with more shareholders and investors, and proactively disclose information.

Disclosure policy

The Brother Group has published the Brother Group Global Charter as its foundation for all Brother Group activities in the global marketplace. It proactively discloses information in a fair and highly transparent manner to build a long lasting relationship of trust with all of its stakeholders, including customers, employees, business partners, shareholders, and local communities, and to stay environmentally responsible. The Company also strives to enhance its corporate value continuously through various communications with its stakeholders.

Brother Group Disclosure Policy

Data related to shareholders and investors

	FY2018	FY2019	FY2020
Financial results briefing	Held four times a year	Held four times a year	Held four times a year
Shareholder newsletter	Issued twice a year (The full-year newsletter is integrated with the convocation notice of a general shareholders' meeting, and the second-quarter newsletter is published only in Japanese.)	Issued twice a year (The full-year newsletter is integrated with the convocation notice of a general shareholders' meeting, and the second-quarter newsletter is published only in Japanese.)	Issued twice a year (The full-year newsletter is integrated with the convocation notice of a general shareholders' meeting, and the second-quarter newsletter is published only in Japanese.)
FTSE4Good Index Series	Included since June 2020
FTSE Blossom Japan Index	Included since June 2020
MSCI Japan Empowering Women (WIN) Select Index	Included since November 2019
SOMPO Sustainability Index	Selected since 2012
Health & Productivity Stock Selection Program	Recognized in 2017, 2019, 2020 and 2021
Certified Health & Productivity Management Outstanding Organization	Certified since 2017

For Brother's financial results, please see "Financial Information" in "Investor Relations."

Local Community

The Brother Group must always be a good corporate citizen, sharing our social, economic and cultural resources in all the communities where the Brother Group operates.

Please see below for details of specific initiatives

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