Compliance with commonly accepted social rules is the core fundamental criterion that governs Ryosan's corporate activities. Currently, the individual judgment borderline that separates each of the social and anti-social zones lies well above the line determined by legislation (Diagrams 1 and 2).
In addition, the ethical behavior zone, within which the vast majority of people naturally reside, lies far removed from the zone identified as illegal behavior. Taking each of these concepts into consideration and recognizing that ethical behavior is positioned within the social zone, every facet of the Company's corporate activities falls within a set of social concerns that encompasses ethical behavior (Diagrams 3 and 4).

Ryosan naturally complies with statutory requirements. The Company has formulated rules and regulations that not only position corporate activities within the parameters of ethical behavior, but also document the “Rule of Ethics” mandating the conventions to which directors and employees must conform. In cases where consultation with managers is problematic with regard to any potential violation of corporate ethics, let alone violation of the law, a structure has been established to protect whistle-blowers under which employees can either seek advice from the director responsible for ethical behavior or report to that director using a suggestion box.