▶Page 14▶Page 38❶ Innovation and competitiveness❷ Client relationship management❸ Human capital management❹ Product quality and safety❺ Response to global ❻ Realization of sophisticated We have identified six materiality issues primarily in light of our management philosophy, code of conduct, values and long-term growth strategy. Based on these materiality issues, we develop, implement, and promote strategies, as well as review and revise the materiality issues, as needed, in line with changes in the business environment and society. For the process of identifying the materiality issues, please refer to Risk Management on page 35.Under our Management Philosophy “Innovation from Japan to the World,” we regard innovation and the retention of competitiveness as an integral element of our materiality issues. We believe it is important that we acquire and develop hybrid talents who are familiar with both business and technology, proactively adopt new technologies, invest in R&D, manage intellectual properties, and constantly evaluate how these elements affect our business.For us, a company pursuing a “Client First” mentality as one of its 5 DNAs, our code of conduct, the maintenance and management of good relationships with clients is also an important materiality issue. We believe that we need to manage our supply chain in a manner to raise the customer satisfaction with our products, retain good relationships with customers including the affiliates of our clients, and maintain communication with these customers, as well as ensure our respect for basic human rights.To continue our business, it is highly important that we acquire, develop, and retain superior hybrid talent who are familiar with both business and technology. We believe that the management of human capital from diverse perspectives, including the health and safety of our employees, diversity and inclusion, and training programs, is also one of our important materiality issues.The system development business within our business domains is required of mission-critical operations, besides ensuring security of data including clients’ data and the protection of privacy. We therefore have placed the highest priority on offering products with quality and safety, along with a high level of reliability and availability.For us, a company focused on being “Global” as one of its 5 DNAs, we believe that it is our responsibility to address pressing issues, which the world is working closely together to tackle, such as global warming and diversity, from the perspectives of both business and technology.Through the delivery of sophisticated IT solutions and services that contribute to customer businesses, the Simplex Group is keenly aware of the importance of governance. The Group has built a governing structure that enhances the oversight of management teams by transitioning to a company with an Audit and Supervisory Committee. We aim for sustainable and sound growth by putting a highly effective governance system into practice in line with our Management Philosophy.34ManagementManagementPhilosophyPhilosophy▶Page 9Simplex PhilosophyLong-Term Growth StrategyVision1000▶Page 6Business/Management FoundationsCode of Conduct5DNAs▶Page 14ValuesMateriality issueenvironment issues governanceMateriality Issues
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