Sustainability ESG Management：Governance / Risk Management and Compliance
Basic Approach
The Group provides effective responses to risks that could impede business as an important management issue. We also secure the trust of society as we promote risk management in order to fulfill our social responsibility to our customers, business partners, shareholders, local communities, employees, and all other stakeholders.
Risk Management System
The Group has developed a risk management system in line with our risk management guidelines, as the occurrence of risks could impact corporate management. The Risk Management Committee chaired by Koji Shimomura, the Managing Director, consists of executive directors including the President and CEO, as well as the full-time Audit & Supervisory Board member. The Committee is responsible for creating risk management policies and ensuring that risk reduction measures are effectively implemented across the organization. Additionally each department carries out risk inspections and internal audits to enforce controls. In addition, the Company will quickly determine a policy for dealing with any risks identified through control activities as well as any new risks that appear.
The Risk Management Committee meets twice a year typically, and receives reports on the risk items identified through annual risk assessments conducted by departments and organizations. The committee then makes critical decisions on the most effective ways to manage these risks. The contents of deliberations are reported to the Board of Directors for supervision and advice.
Disaster Risk Response: BCP Initiatives
We have formulated business continuity basic regulations for the safety of our employees, etc., as well as to protect assets and to maintain and quickly resume important business operations. We have also formulated a business continuity plan (BCP) to ensure preparedness for potential damage and facilitate recovery in the event of a disaster. Additionally we are enhancing our systems to better handle such situations.
In addition to disaster drills, a safety confirmation system has been introduced to quickly and efficiently gauge the safety and circumstances of employees in the event of a disaster or emergency, such as a major earthquake. The safety information obtained through this system can be used to implement our BCP in emergency situations. To improve the effectiveness of the safety confirmation system for employees, etc., the Company is building a system to prepare for disasters, for example, by conducting periodic safety response drills.
Furthermore, in response to the global outbreak of COVID-19, we ensured uninterrupted production and maintained our product supply system by implementing strict measures to prevent the spread of infections at our domestic and overseas production sites. This included a COVID-19 response meeting with department managers, as well as the President and CEO, to formulate and discuss policies for addressing the pandemic. We will continue to consider other measures to quickly and effectively reduce risks.
Information Security
Basic Approach
While advances in information processing and network technology are progressing quickly, the ease of managing information, both internally and externally, also brings increasing risks. These risks include information leaks, falsifications, and destruction caused by increasingly sophisticated cyberattacks.
Given this digital environment, we consider it an important management issue in fulfilling our social responsibility to accurately identify and address risks related to information management and to effectively manage the security of the Group’s information assets (information and the systems, equipment, media, and facilities that handle this information). Accordingly, the Company has established information security management regulations, and we are developing and operating an information security management system.
Information Security Management System
The Group has developed a system to ensure that the Information Security Committee (Chief Information Security Officer: Koji Shimomura, Managing Director), which consists of executives directors including the President and CEO as well as the full-time Audit & Supervisory Board member, oversees the entire organization and effectively manages information security.
The Chief Information Security Officer has established the Basic Policy on Information Security, for establishing information security management, and we thoroughly educate and inform directors, employees, and others about the need for continuous improvement and the importance of meeting legal and regulatory requirements.
Compliance
Basic Approach
Recognizing the importance of compliance, the Group has established and is operating a code of conduct and compliance management regulations as the standards of conduct for directors and employees, etc., to ensure compliance with laws, regulations, the articles of incorporation, social norms, and other requirements, and to fulfill our social responsibilities.
Compliance Promotion System
The Compliance Committee (Chairperson: Koji Shimomura, Managing Director), which consists of executive directors including the President and CEO as well as the full-time Audit & Supervisory Board member, oversees the entire organization to thoroughly educate and inform directors and employees of the code of conduct and other internal regulations. The Company has also established and is currently operating an internal reporting desk. The Internal Audit Department audits effectiveness of the compliance system.
Antibribery and Anticorruption Initiatives
The Group’s Compliance Handbook clearly states the prohibition of bribery and other forms of corruption. In addition, based on our compliance management regulations, self-inspections are conducted twice a year at all departments, and ongoing education is provided through new employee training, job grade-based training, and during other opportunities.
In the self-inspections conducted in FY2023, based on compliance management regulations, no violations were reported, and the same was true for the audits conducted by the Internal Audit Department.
Internal Reporting System
The Group has established a hotline, also known as a whistleblowing system, to serve as a contact point for reporting potentially illegal or inappropriate actions. The purpose of this hotline is to detect and address these actions at an early stage. We have an internal reporting desk and an external reporting desk.
Anonymous reporting is also an option, and the Company diligently follows regulations regarding compliance, which include maintaining confidentiality and prohibiting the mistreatment of whistleblowers. Any conduct in violation of laws and regulations is subject to disciplinary action as outlined in our internal rules.
In FY2023, we received a total of 15 reports: 13 were submitted to the internal reporting desk and 2 were submitted to the external reporting desk. Both reports were handled in cooperation with the related departments fairly and faithfully.
