#Japan #Digital Transformation #Tokyo #Business Ethics #Spice Factory

Spice Factory's Commitment to Evolving Business Ethics

Spice Factory Co., Ltd., headquartered in Minato, Tokyo, has recently published a comprehensive set of guidelines known as the “Policy Management Basic Policy” and the “Business Ethics and Trading Policy.” These policies are designed to establish a foundation for corporate behavior that prioritizes genuine ethical considerations over mere compliance and superficial ideals.

The core motivation behind these policies centers on reflective questioning—focusing on “Why do we create?” and “For whom do we make our choices?” The aim is to cultivate long-term trust through proud and responsible decision-making. In an era where artificial intelligence and emerging technologies have become commonplace, companies like Spice Factory must constantly assess how to effectively integrate technology into society. This proactive stance redefines compliance as more than just adhering to rules; it emphasizes ethical autonomy and a sense of pride in decision-making, shared both internally and externally.

The Broader Context: The Shift Towards Authentic Corporate Governance

Currently, Japanese businesses are encountering a significant transition. The Financial Services Agency's 2025 Corporate Governance Reform Implementation Plan specifies the need for transparent information dissemination, fostering dialogue with investors and stakeholders. Companies are encouraged to evolve from formal compliance towards decisions grounded in ethical principles to boost corporate value and contribute positively to society.

The urgency of this transition can be seen in alarming statistics from the 2024 fiscal year, which reported a record number of 317 corporate bankruptcies due to compliance violations—a 35.4% increase from the previous year. Such statistics highlight an escalated risk of misconduct affecting business relationships.

Internationally, the OECD has updated its Corporate Behavior Guidelines in 2023 to include enhanced duties of care regarding human rights, environmental issues, and corruption prevention, extending these responsibilities to partnerships and customers, stressing the ethical enterprise of entire supply chains rather than merely individual companies.

Overview of the Policy Management Basic Guidelines

To ensure these policies are deeply rooted within the company culture, Spice Factory introduced the Policy Management Basic Guidelines. This framework delineates common principles for the design, operation, and updating of company policies, ensuring they're not just typical regulations but serve as essential foundations that support daily actions and decision-making.

The principles are clear:

• - Transparency: All policies must be accessible and understandable to everyone involved.
• - Actionability: Policies should be operationally useful, integrated into workflows, and decision-making processes.
• - Dialogue: Creation of a culture that promotes discussion and updates on policies rather than rigid adherence to static rules.

Insights into the Business Ethics and Trading Policy

Spice Factory's Business Ethics and Trading Policy transcends a mere checklist of prohibitions. It is built upon values like “Courage to Choose”, “Culture of Dialogue”, and “Standards of Co-Creation” aimed at fostering long-term relationships built on trust with stakeholders.

Key Policy Elements

1. Our Belief: Technology should enhance human emotion and intent—continuously questioning who benefits from it and what value it provides.
2. Ethical Choices: The guiding principles discourage any engagement in unethical enterprises, focusing on what should be done rather than what is possible.
3. Non-Engagement Areas: Clear exclusion of participation in projects supporting harmful practices or technologies.
4. Employee Guidance: Established as a “compass” for employees to turn back to when they face a moral dilemma, fostering a supportive decision-making environment.
5. Trust Maintenance: Emphasizes ethical autonomy as a crucial aspect of business responsibility and the imperative of upholding legal standards.
6. Community Engagement: A commitment to public support and ongoing dialogue with society through annual revision processes of policies.

Examples Illustrating “Courage to Choose”

In practicing this courage, Spice Factory has intentionally opted out of specific projects, such as:

• - Development of IT systems perpetuating multi-layered contracting issues.
• - Any engagement in businesses recognized as harmful to mental or physical well-being.
• - System developments linked to questionable animal welfare practices.

Conversely, Spice Factory has actively engaged in projects with notable social impact, such as:

• - Designing community services for hematologists.
• - Developing sustainable agricultural systems.
• - Creating disaster prevention applications to augment community resilience.

A Vision for the Future

Spice Factory’s Business Ethics and Trading Policy represents our “moral compass,” guiding choices based not only on capability but on moral integrity as well.
The rise of AI and rapid technological advancements beckon the question of why we create and for whom, reminding us that choices should factor in both emotion and ethical considerations. We recognize that long-term relationships rooted in trust and community welfare will ultimately be the bedrock of lasting business success. Ethics and integrity are foundational rather than restrictive—a viewpoint we hold with pride and dedication.

In conclusion, we commit to cultivating a corporate culture that can not only withstand change but thrive in it—reflecting our mission of being the “Catalyst of Innovation.” Our purpose remains clear: “One pixel at a time, make the world a better place.”