Governance
Risk management
Basic approach
Our approach to risk management entails recognizing and evaluating various risks with the potential to substantially impact our management as regards our business goals and taking steps to prevent those risks and minimize losses in the event of a contingency.
We’ve established a Compliance and Risk Management Committee, which is chaired by the president to comprehensively examine the Nichiden Group’s risk management-related structures, policies, and measures. The results of deliberations by the Compliance and Risk Management Committee are reported to the Board of Directors. We’ve also put in place structures to address unforeseen contingencies by responding quickly to avoid or minimize losses and prevent recurrences.
Furthermore, in line with the Group’s risk management rules, we’ve established risk-specific oversight departments that regularly review Nichiden’s risk response measures.
Compliance and risk management structure
Business continuity plan
We’ve formulated a business continuity plan to allow our businesses to continue to operate in the face of an array of contingencies, including a natural disaster or pandemic. We’ve put in place structures to quickly establish an emergency task force in the event of such an emergency.
Business continuity plan
- Purpose
- This plan was formulated with the goal of facilitating the continued operation of Nichiden’s businesses in the event of an emergency (such as an earthquake) while ensuring the safety of employees and their families.
- Basic policy
- In the event of an emergency, Nichiden will take steps to ensure the continuity of its business operations in accordance with the following basic policy.
- Safeguard the safety of employees and their families.
- Maintain Nichiden’s operations.
- Safeguard trust with business partners by fulfilling supply responsibility.
- Safeguard employees’ jobs.
- Safeguard the vitality of the local economy.
Dealing with a natural disaster
In the event of a natural disaster or other emergency, we will immediately establish an emergency task force chaired by the president to address the situation, including by working closely with facilities and sites to assess any damage, aiding employees and securing resources, communicating through public relations activities, and assisting with recovery efforts.
In addition, we’ve distributed an emergency action manual to employees. We’re working to ensure the safety of employees regardless of whether they’re at work, at home, or at another site on company business.
Emergency supplies
We’ve distributed essential emergency supplies to all employees for use in the event that they need to return home or relocate to a shelter in the event of an emergency. We also maintain stores of helmets and other emergency supplies for offices. By periodically replacing these supplies and verifying their quantities, we ensure that they’ll be available for use in the event of an emergency.
Dealing with a pandemic
Our business continuity plan includes measures to address the spread of a possible pandemic, including initiatives to prevent infections, regulate the activities of infected employees, and facilitate continuity of business operations under pandemic conditions (by, for example, limiting the number of employees who report for work, adjusting the manner in which employees do their jobs, and specifying the scope of such work).
During the recent COVID-19 pandemic, we lowered risk by putting in place restrictions on activities by employees who were or who were likely to be infected as well as rules governing who could report for work and handling of leaves from work.
Disaster preparedness training
We designate every September as Disaster Preparedness Month so that each employee will be able to ensure their own safety by mastering important knowledge and judgment ability and acting appropriately in the event of an emergency. In addition to holding training on confirming safety, evacuation, firefighting, and emergency aid at each worksite, we’re working to raise awareness of the importance of disaster preparedness by, for example, having employees read through our disaster preparedness manual, go over changes in the manual, and review the information on their personal disaster preparedness card. We’re also working to enhance future training by administering a questionnaire after the training.
Information security
We recognize information as an essential asset in our business activities and consider ensuring its integrity to be an important priority. We’ve put in place information management rules, and we’re working to ensure that confidential information and personal data are not disclosed in an unauthorized manner. In fiscal 2022, we further strengthened our information security regime by establishing an information security policy and revising some information management rules.
Information Security Policy
- 1. Management’s responsibility
- We will strive to systematically and continuously improve and enhance information security under the leadership of management.
- 2. Development of internal systems
- We will establish a management system to maintain and improve information security, establish information security measures as internal regulations, and act in accordance with these regulations.
- 3. Initiatives by directors, employees, and others
- We ensure that our directors, officers, employees, and others understand the rules and regulations concerning information security and acquire the necessary knowledge and actions through education to uphold our commitment to information security.
- 4. Compliance with legal and contractual requirements
- We comply with laws, regulations, codes, and contractual obligations related to information security and meet the expectations of our business partners.
- We handle the personal information of our business partners and our company in accordance with the Act on the Protection of Personal Information of Japan.
- We handle the confidential information of our business partners and our company in accordance with the Unfair Competition Prevention Act of Japan.
- 5. Response to violations and accidents
- In the event of any violation of laws and regulations, breach of contract, or accident related to information security, we will take appropriate action and strive to prevent any recurrence.
Strengthening information security
To strengthen information security, we augment companywide initiatives with irregularly scheduled awareness-raising activities designed to improve employees’ literacy in line with monitoring by the Information Systems Department.
Intellectual property initiatives
We strive to protect intellectual property rights and prevent infringement with the goal of respecting assets and rights and ensuring they are strictly managed, administered, and protected. We spread awareness about our approach to intellectual property and associated prohibited conduct among employees through a Compliance Action Guidebook in an effort to prevent violations of applicable laws and foster understanding of the value of Nichiden’s intellectual property.
(Nichiden patents)
Number of patents as of the end of fiscal 2023: 2 (in Japan)
For details on business risks, refer to “Business risks” in our securities report.
Compliance
Basic approach
The Nichiden Group recognizes that ensuring compliance is an essential part of fulfilling its social responsibility and continuing to develop in the future. To help ensure compliance, we distribute a Compliance Action Guidebook to all officers and employees in accordance with our Charter of Corporate Behavior and endeavor to earn stakeholder trust by acting in accordance with high ethical standards.
Compliance-related issues are studied by our Compliance and Risk Management Committee and addressed in an appropriate manner in accordance with internal rules.
Cultivating a compliance mindset
Compliance Action Guidebook and training
We offer education and training in line with an internal handbook to ensure compliance throughout the Nichiden Group by formulating policies concerning compliance structures.
Compliance Action Guidebook
Whistleblowing system
We’ve established internal and external hotlines that protect whistleblowers so that employees can directly report and seek advice about conduct that violates our Charter of Corporate Behavior and associated risks. We’ve put in place structures to quickly assess and rectify problematic situations. In fiscal 2023, there were six reports to the hotline.
Compliance Room and Kawaraban
Our monthly Kawaraban newsletter provides useful information about timely, compliance-related topics. Compliance Room, our internal information website, offers a variety of compliance-related resources for employees, including back issues of Kawaraban and awareness-raising videos.
Kawaraban
Compliance Room
Compliance education
We offer compliance education for all employees. We have employees review the Compliance Action Handbook and view compliance-related videos. In addition, we designate every November as Compliance Promotion Month. Each department holds awareness-raising activities, and we work to boost compliance awareness through a newsletter that’s sent out every week.
Anonymous compliance questionnaire
We’ve administered a total of eight anonymous compliance questionnaires to date to improve and further develop our hotline and its administration, assess and explore conditions in individual departments, and gauge changes after harassment prevention training. We work to create a better workplace environment based on questionnaire results by proposing actions to be undertaken by the company, identifying conduct that should be eliminated, and providing the company’s views as feedback.
Human rights initiatives
We’re dedicated to creating a virtuous cycle with stakeholders and the surrounding environment by ensuring that each and every employee’s dignity and basic human rights are safeguarded and respected across all of our business activities in accordance with our Charter of Corporate Behavior. In addition, as a global company, we consider understanding various countries’ cultures, practices, and values and respecting human rights to be essential parts of the Nichiden Group’s business operations.
