Source: ILO Global Report on Child Labour 2006

With SMK, more than 60% 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 production locations. Once in a while we come across with problems related to religious matters. We as an entity operating overseas are obligated to comply with legislation and carry out our social responsibilities for environmental preservation, information management, ensuring safety and respect for people regardless of the countries where we conduct business. Special attention needs to be paid to the working environment of workers especially when production activities are made in overseas countries. SMK has provided people who are to be transferred to overseas business locations with pre-transfer employee education about ethnic groups, religions, culture and customs of destination countries to enable the establishment of a cooperative relationship with local people. In addition, we have guided local suppliers to keep workers off inadequate and bad working environments and monitored if this guidance was observed.