The Group has formulated the Basic CSR Policy based on our Corporate Philosophy and the Mitsubishi Steel Group Code of Conduct, and we are promoting CSR activities accordingly. The Mitsubishi Steel Group Code of Conduct is based around the six central pillars of "business activities," "compliance," "disclosure," "respect for employees," "environmental conservation," and "globalization." We are working to raise employees' awareness of CSR by releasing 11 statements regarding these areas.
The Group recognizes the importance of the establishment of a corporate structure that is able to respond to any changes in the business environment, and we have designated "achieving sustainable global expansion by fostering competitive businesses" as our basic management policy. In order to achieve this, we recognize the importance of having comprehensive corporate governance and swift and reasonable decision-making processes, while also ensuring that we have functions for their oversight.
Corporate Governance System
We released the Basic Policy for Corporate Governance in fiscal 2015, and we have revised the Rules of the Board of Directors in line with this, added important matters that are necessary for the pursuit of efficient corporate governance to the deliberation and reporting standards, and we are strengthening the over sight functio ns of the Board of Directors by ensuring full exchange of information and pooling of knowledge, etc. between independent outside directors in the Governance Committee, which is a subordinate organization of the Board of Directors.
Major Points Concerning Internal Control
Enhancing functions of the Board of Directors and the Board of Corporate Auditors
The Board of Directors is where the direction of the entire Group's management strategy is determined, and it has been making decisions concerning the formulation of our basic management policy, other matters stipulated by the relevant laws and the articles of incorporation, and important matters relating to management, as well as conducting oversight of the execution of directors' duties while giving consideration to the streamlining of decision-making processes. Furthermore, meetings of the Board of Directors are attended by outside directors and outside corporate auditors to ensure the fairness and transparency of executive decision-making.
Deliberation on executive decisions by the Management Committee, as well as strengthening compliance and risk management
We hold weekly management meetings with directors, corporate auditors, fellows, general managers, and managers of the Corporate Planning Sections and Administration. At the meetings, we discuss important executive matters, compliance, and risk management, and implement actions as appropriate.
Internal controls relating to financial reporting
The Internal Control Committee and the Board of Directors have determined that internal controls relating to financial reporting in fiscal 2015 are valid according to generally accepted evaluation standards. Furthermore, we have received an opinion from an audit corporation to the effect that this evaluation is appropriate.
Convening Meetings of the Board of Directors and Board of Corporate Auditors
As a rule, meetings of the Board of Directors and Board of Corporate Auditors are to be held once each month.
Each outside officer also actively expresses their opinions from a range of viewpoints, and thoroughly fulfills their management oversight functions.
In order to continue sound business activities, we are promoting enhancement of risk management functions to respond swiftly and appropriately to actual or anticipated risk, and we are working to prevent initial occurrence of risk.
Risk Management System
The Company's Management Committee investigates and considers the risks faced in the course of the Group's business activities. The Management Committee was convened 60 times in fiscal 2015. Important matters are deliberated on by the Board o f Directors, based o n the Rules of the Board of Directors, and the system of understanding and managing risks that arise in the course of business activities is strengthened.
Business Continuity Plan
The Group's BCP (business continuity plan) is managed by the Corporate Planning Department, and implemented throughout the Company. Particularly at Head Office and the Chiba Works, etc., which are located in the Tokyo metropolitan area, we have established a unified organization, we hold bi-monthly Tokyo metropolitan area disaster prevention meetings, and are enhancing promotion of the BCP.
We are introducing a Safety Confirmation System for the purpose of swiftly and accurately confirming the safety of all employees in the event of a disaster.
Furthermore, we distribute one day's worth of evacuation kits in addition to maintaining three days' worth of emergency supplies at each location. Apart from this, we constantly promote conducting of earthquake preparedness evaluations at each building that we own and participation in crisis response simulation training with no advance scenario* for the purpose of employee education.
- *Training to encourage thinking of the appropriate actions when involved in a mock emergency without knowledge of the training scenario
Management of Confidential Information
At the Company, we disclose essential information in a timely and appropriate manner. In addition, we have formulated the Confidential Information Management Rules, and we ensure thorough security management of information assets from customers, employees, and other relevant parties, etc. that must be protected. In fiscal 2015, we introduced a system of sending external email copies to superiors and providing a passwords to attached files automatically, in order to strengthen email security.
We have also stipulated rules for the protection of specific personal information of employees, and we have applied them to the individual number (social security and tax number system).
In order to prevent leak s of confidential matters , employees are required to submit a "pledge concerning the non-disclosure of information" when first joining the company.
Through periodic education, we encourage awareness of the importance of management of confidential information, which leads to the prevention of information leaks.
Overseas Risk Management Measures
We have put emergency measures in place to afford expatriate staff, their families, and those traveling overseas for business purposes, a secure lifestyle, even if they are living in a completely different environment to Japan, which is comparatively safe and clean.
We cooperate with a specialist overseas risk management company in creating a system that provides Japanese language medical and security (crime and disaster relief, etc.) advice and help 24 hours a day, 365 days a year, anywhere in the world.
Also, we value daily international communication, such as by sharing information between the Head Office and overseas locations if there are any warnings concerning weather events or protests, etc.
We had no instances of personal information leaks in fiscal 2015.
The Group is conducting business practices that comply with laws and social norms as indicated by the Mitsubishi Steel Group Code of Conduct.
The Group works to develop and implement a compliance system by deliberating on whether execution of operations comply with the law through the Management Committee and the Board of Directors. We also link group-wide audits conducted by the Board of Corporate Auditors with internal audits of the execution of employees' duties conducted by the Internal Audit Department.
The Group is working to ensure that thorough compliance education is conducted.
During training, unique ideas are implemented so that they relate themselves to compliance issues, such as by taking examples from actual events and using them as teaching materials as appropriate to the level of training, and engaging in discussions as necessary.
Going forward, we will continue to conduct training in order to further improve awareness of compliance and ensure penetration among officers and all group employees.
Preventing Connections with Antisocial Forces
The Group is resolutely against antisocial forces and has stipulated that no dealings with them will be allowed, as indicated by the Mitsubishi Steel Group Code of Conduct. Based on this, we have concluded a Memorandum Concerning the Exclusion of Antisocial Forces with each of our suppliers. We additionally work to ensure compliance with the Mitsubishi Steel Group Code of Conduct, such as by providing instruction on preventing interaction with antisocial forces and remaining resolute to avoid succumbing to threats and improper demands in our employee education.
Internal Reporting System
The internal reporting system utilizes internal and external help-desks outside of the workplace to receive reports and provide advice should any of the Group's employees become aware of illegal or improper acts, or where there may be a problem and for whatever reason finds it difficult to discuss the issue in the workplace. Reports can be made by telephone, email, fax, mail, in writing, or in person, and we also accept anonymous reports.
With our Shareholders and Investors
The company is working to make fair, timely, and appropriate disclosure in addition to pursuing improvements to increase corporate value and maintain a sound business base.
Information Published on the Website
We continually post new information on the website and publish important information in a fair, timely, and appropriate manner. In addition, we are working to post information other than that required by laws and regulations, such as topics and CSR information.
In fiscal 2015, we developed the Basic Policy for Dialogue with Shareholders and Investors, which expresses our basic attitude towards information disclosure, and we posted it on the website.
Communication with Shareholders
We issue Shareholder's Report at the conclusion of both the fiscal year and the second quarter. We use graphs and pictures to present results, segment information, and topics, etc. in a manner that is easy for shareholders to understand and that deepens shareholder understanding of the Group.
General Meeting of Shareholders and Shareholder Discussion Meeting
The Company holds a shareholder discussion meeting immediately following the annual general meeting of shareholders for the purpose of exchanging information with shareholders. At the meeting we utilize business content description panels, product displays, and videos describing the production process, etc., as well as explanations from the President, directors, general managers, and sales managers. We consider this to be an important opportunity to directly receive the opinions of our shareholders.
Financial Results Briefing
The Company holds regular financial results briefings for securities analysts and institutional investors (in May and November). Mitsubishi Steel Muroran Inc. also conducted a factory tour in March, which allowed people to view each manufacturing process. Based on the requests made at the financial results briefings, we plan to hold similar events at other factories.