Compliance and Risk Management

Promoting Compliance and Risk Management

Basic Stance

We believe that compliance and risk management are the two inseparable pillars of internal control. They form the basis for sound corporate governance and are a focus of our CSR activities. We are working hard to ensure that corporate ethics are strictly upheld at all group companies and to promote business continuity management (BCM).

Corporate Code of Conduct

8.Observe laws and customs

In conducting its business activities, the Teijin Group observes the laws and customs of the country or the region in which it operates. The Teijin Group also maintains upright and lawful relations with politicians and governments and avoids relations with any individual or organization that obstructs social order or its healthy operations.

Compliance and Risk Management (CRM) Promotion System

The Group CRM Subcommittee, established under the Group CSR Committee, meets twice a year to deliberate on CRM-related policies, measures and activities, and promote their group-wide expansion.

In Japan, at business groups and group companies, we have appointed a person in charge of promoting CRM who manages/operates activities at respective workplaces. Overseas, each business group and group company conducts its own independent training, and global compliance meetings organized by Teijin Limited are held in main overseas regions every year. In FY2016, we held a total of five meetings, with three in Thailand and two in the U.S.

Positioning of Compliance and Risk Management

[Corporate Governance]
A fair, transparent and objective management system
[Internal Control]
[Compliance]
Activities focusing on legal and ethical compliance, as well as on internal regulations, to create a sound corporate culture
[Risk Management]
Mechanisms, systems and training for evaluating, preventing, and controlling corporate risks

PDCA cycle of compliance and risk management activities

[Plan]
Establish Yearly Plan and Prioritize Activities:
Confirmed by the Group Compliance and Risk Management Subcommittee
[Action]
Lessons Learnt from This Fiscal Year to Be Incorporated for the Following Year:
Achievements for this year and selection of issues
[Check]
Chief Social Responsibility Officer Review: Once a year
Corporate Ethics Awareness Survey: Once a year
[Do]
Develop and Maintain of Educational Materials:
Improve the content, and update the Q&A and case-study lists
[Implement Training]
Workshops for promoting managers,
E-learning about compliance,
Level-based workshops,
Visiting workshops for group companies
[Approach to Risk]
Training relating to verifying safety in emergencies,
Clarifying and evaluating risks,
Creating business continuity plans,
Earthquake response drills
[Corporate Ethics Month Campaign]
Display corporate ethics posters,
Display posters aiming to prevent abuse of authority,
Workshops for all employees,
Conduct surveys of all employees using check sheets
[Information Disclosure]
Set up a corporate ethics website on the corporate intranet,
Disclose the results of corporate ethics surveys
[Operate Hotline]
Notices to all group employees and individual responses,
Disclose hotline information (every six months)

Results of Reviews by Chief Social Responsibility Officer (Law Violations and Occurrence of Accidents)

Every February, the Chief Social Responsibility Officer reviews the CRM activities for the previous calendar year of business groups and group companies. This review assesses whether there were any serious violations of laws or accidents during CRM activities, and confirms the compliance and risk management activities of business groups and group companies on the basis of the compliance and risk management activity survey submitted.

Of the matters reported to the Chief Social Responsibility Officer in February 2017, there were no serious matters relating to violations of laws or accidents. In regards to the case of having Teijin Pharma Limited complete a post-marketing survey as proxy in the previous year, which was reported as a serious matter, recurrence prevention measures such as the enforcement of employee training and reinforcement of management systems were implemented, and it was confirmed that measures to restore trustworthiness were being rolled out at a steady pace.