Bridgestone 2008 Annual Report Download - page 37

It is a forum for discussing and reporting on specic matters set
forth in Company policy as well as other important matters.
Nominees for executive appointments and executive remuneration
packages for all directors and corporate ofcers are determined by
the Directorial Personnel and Compensation Committee. Selected
directors (excluding the CEO and President), corporate ofcers,
divisional heads*, and corporate auditors serve on this committee.
Nominations, executive compensation, and retirement and
severance benets are all within the purview of this committee.
Matters considered and reported by this committee are deliberated
on before a decision is made by the CEO and President, the Board
of Directors, the Board of Corporate Auditors, or the General
Meeting of Shareholders. This helps to ensure transparency
and objectivity.
*also titled directors (non board members) within Bridgestone, “Honbuchou” in Japanese
COMPLIANCE STRUCTURES AND SUPERVISION
Based on the spirit of “Trust. And Pride” and the mission of “Serving
society with superior quality,” Bridgestone implemented and
developed new internal compliance systems in December 2002.
The Compliance Committee, which is led by the Chief Compliance
Ofcer (CCO), has responsibility for the operation of a compliance
counseling ofce that includes a helpline to provide employees
condential channels in seeking compliance-related advice, as well
as for promoting compliance-related education for directors and
employees. In January 2007, recognizing the CSR-related importance
of compliance activities, Bridgestone established the Compliance
Committee, which is chaired by the CCO and is a subcommittee of
the Integrated CSR Enhancement Committee, which is chaired by
the CEO and President. Moving forward, Bridgestone will continue
to advance compliance activities as one facet of its CSR.
RISK MANAGEMENT
Risk management activities, led by the Chief Risk-Management
Ofcer (CRO), focus on the identication and mitigation of
operational risks and the implementation of measures—as outlined
in a basic risk management manual—designed to prevent both
small-scale accidents and large-scale incidents. Contingency
planning activities include the formulation and review of business
resumption plans aimed at restoring operations as quickly as
possible in the event of any disruption. In January 2007, in line with
the recognition of the importance of risk management in CSR,
Bridgestone established the Risk Management Committee, which
is chaired by the CRO and is a subcommittee of the Integrated
CSR Enhancement Committee. Moving forward, Bridgestone will
strengthen the system for the comprehensive management of risks
that could have a major inuence on the operating activities of
Bridgestone and other Group companies.
PROTECTION OF PERSONAL DATA
Bridgestone has formulated internal policy guidelines on the
protection of personal data. Besides developing a management
system based on this policy, all employees of parent company,
Bridgestone Corporation, undergo privacy training and related
awareness programs to address this important issue.
INTERNAL CONTROL SYSTEMS DEVELOPMENT
On May 1, 2006, the Board of Directors instituted an ofcial
company policy governing internal control systems, and the
Company reevaluates its activities each year and works to ensure
appropriate internal control. This move was designed to comply
with the provisions of the Financial Instruments and Exchange Law
of Japan that govern the evaluation of internal control systems to
assure the reliability of nancial reporting and related information.
This law, which came into force in June 2006 and is commonly
referred to as the Japanese Sarbanes-Oxley Act, provides for
mandatory ling of internal control reports to be audited by the
independent auditors beginning scal 2009. To ensure the effective
use of the systems that have been developed, Bridgestone will
continue to enhance design and operational systems.
DISAVOWAL OF ANTISOCIAL ELEMENTS
Bridgestone has no connection whatsoever with antisocial forces
or groups that threaten public order and safety, and takes a
resolute stand against such elements. A department has been
established to manage information received regarding such
matters, and efforts have been made to build relationships of trust
and cooperation with external institutions, such as the police and
other related organizations. Bridgestone will continue to enhance
internal systems aimed at eliminating antisocial inuences.
35