Omron 2013 Annual Report Download - page 42

80 Omron Corporation Integrated Report 2013 81
Corporate Value Foundation
Strengthening Global Response Systems
Aiming to promote legal and regulatory compliance across
the Group, Omron set up the Group Corporate Ethical Con-
duct Promotion Committee. In addition, we have installed
stringent legal affairs and compliance functions into regional
head offi ces overseas to ensure that we can practice effec-
tive compliance and risk management in each region, wheth-
er overseas or in Japan.
In recent years, economic and business globalization has
been accelerating, bringing about changes in legislation and
other elements of the external environment. At the same
time, Omron is progressively advancing its operations on a
global scale, which includes expansion into emerging coun-
tries, and this expansion has resulted in exposure to risks
that could not be previously predicted. In order to respond
to such changes in external and internal conditions, we
have positioned compliance as a matter to be considered
alongside risks, and we are conducting integrated global
risk management initiatives accordingly. Commenced in
fi scal 2011, these initiatives are geared toward addressing
risks faced by the Group, such as natural disaster risks, in
an integrated manner.
In fi scal 2012, Omron revised the Group Corporate Ethical
Conduct Promotion Committee, transforming it into the
Corporate Ethics & Risk Management Committee to enable
better responses to compliance matters and other risks on a
global scale. The membership of this committee consists of
compliance and risk management representatives from the
corporate headquarters and each business company as well
as from regional head offi ces. In addition, we have appointed
risk managers at all Group companies in Japan and abroad
and are taking other steps to create systems that allow for
quick responses to risk-related matters on a global basis.
Further, we have established the Basic Principles of Integreat-
ed Global Risk Management. These rules are applicable
throughout the Omron Group, both in Japan and overseas,
and serve as a framework for implementing an integrated
global risk management plan-do-check-act (PDCA) cycle.
In accordance with the Basic Principles of Integreated
Global Risk Management, we identify major risks faced by
the Omron Group by collecting and analyzing risk-related
information. The Executive Council then guides the entire
company in implementing countermeasures to prevent the
realization of such risks. In response to crises, we have
established the Global Crisis Management Rules, which
defi ne a “crisis” as any event that has or may have a signifi -
cant negative impact on the continuation of management
and business activities by the Omron Group or any event
that does or may harm the social credibility of the Company.
These rules cover a wide range of areas while also outlining
basic policies, reporting procedures, and the establishment
of an Emergency Response Headquarters.
In fi scal 2013, regional head offi ces will play a central role
in practicing integrated global risk management in order to
raise overall responsiveness to change, which will be es-
sential to ensuring Omron becomes a stronger company.
Risk Management
Omron conducts global risk analyses each year, based on
which the Company identifi es major risks and then responds
to these risks in a prioritized manner. The following is an
explanation of such risks and the measures being imple-
mented in response to these risks.
• Business continuity risks
The Company has established a business continuity plan
(BCP) to minimize the impacts of emergency situations on
operations. This plan contains provisions deemed necessary
to facilitate the safety as well as the continuity and early
restoration of business operations in the event of a large-
scale earthquake, such as a quake in the Nankai Trough or
directly under the Tokyo metropolitan area, or other natural
disasters; fi res; a worldwide outbreak of a new form of
infl uenza virus; and other emergency situations. To this end,
the plan defi nes the conditions under which it will be insti-
tuted, describes methods of deciding alternative bases and
transferring functions, and sets out what procedures are
core to the Company’s operations. Related operating manu-
als have also been established.
We are continually improving our BCP by confi rming
its effectiveness and conducting BCP-related evaluations
and drills.
• Risk of violation of laws in countries of operation
Omron develops its operations on a global basis, and it is
therefore necessary to take precautions against violating
laws related to the prevention of bribery of public offi cials,
personal information protection, antitrust measures, and
security trade control. For this reason, the Company con-
ducts employee education and training programs to ensure
that employees are able to act in compliance with such laws.
• Information leakage risk (information security)
Omron has the basic policy of fulfi lling its responsibility
toward customers, society, investors, and other stakehold-
ers through appropriate security management. In accor-
dance with this policy, we conduct integrated management
of confi dential and personal information. Periodically, we also
conduct employee training, checks of information manage-
ment conditions at worksites, investigations of information
management by subcontractors, and information security
monitoring. Further, information security measures are
constantly revised in accordance with the fi ndings of these
activities and changes in the external environment.
Overseas, we implement technological information leak-
age prevention measures and monitor information manage-
ment at our various overseas production and R&D bases,
implementing improvement measures as necessary. In
addition, subsidiaries have formulated internal information
management regulations in accordance with globally
accepted rules and standards.
Recently, we have strengthened technological information
security in light of the possibility of a cyber-attack against our
information systems. Going forward, we will continue to
improve the level of information security management in
Japan and around the world.
• Risks associated with transferring employees
across borders
As Omron accelerates the global expansion of its operations,
it is seeing a rise in the number of opportunities for person-
nel to be exchanged between companies and for employees
to work in cooperation with people of various different na-
tionalities. This in turn has increased the possibility that labor
issues may appear due to differences in culture, customs, or
treatment.
To prevent such issues from occurring, we are enhancing
risk communication efforts and bolstering our ability to
manage people with different cultural backgrounds.
• Purchasing and procurement risks
Omron conducts procurement by selecting reliable suppliers
and asking that they cooperate with certain requests. These
requests include those related to compliance and prohibition
of child labor, forced labor, and bribery.
From the perspective of socially responsible procurement,
Omron endorses the efforts to address confl ict minerals
issues that were instigated in the United States. Accordingly,
we conduct investigations of major suppliers to determine
whether or not they use confl ict minerals and are otherwise
addressing this issue in our mineral procurement efforts. We
are committed to conducting appropriate purchasing and
procurement activities, and, should the use of any confl ict
minerals in Omron Group products be discovered, we will
take corrective action as quickly as possible.
• Environmental management risks
The Group works to comply with a wide variety of environ-
mental laws and regulations, including those related to
climate change, air and water pollution, hazardous sub-
stances, waste, product recycling, and the contamination of
soil and groundwater.
In fi scal 2013, we will implement measures to further
improve our responsiveness to environmental laws and regu-
lations, with a particular emphasis placed on our operating
sites and factories. These measures will include training
related to such laws and regulations, compliance-related
audits at production sites in China and the Asia Pacifi c
region, and education programs on auditing methods for
ensuring legal compliance.
Whistle-Blower Hotline
Establishing operational regulations with clearly
stated provisions for the protection of whistle-blowers
In 2003, a whistle-blower hotline was established for Omron
Group executives, full-time employees, and temporary staff
as well as their families. Staff of the Legal Affairs Depart-
ment handles hotline information within the Company, while
an external attorney offi ce serves to accept information. In
operating the whistle-blower hotline, we have established
internal regulations ensuring strict maintenance of security
and the protection of whistle-blowers from any detrimental
treatment. Moreover, Omron informs employees of the
availability of the hotline through corporate ethics cards,
through the intranet, and during new employee training.
Overseas, a similar whistle-blower hotline has been estab-
lished for operations in Americas, which was the fi rst area to
establish such a hotline outside of Japan.
In fi scal 2012, operations in Europe were equipped with a
whistle-blower hotline, joining the ranks of Japan and the
Americas, and such hotlines were installed for operations in
the Asia Pacifi c region at the end of the fi scal year. During
fi scal 2012, a total of 20 hotline reports and consultations
were made in Japan, six were made in the Americas, and
one was made through the new hotline in Europe.
In fi scal 2013, we will install a whistle-blower hotline in the
remaining Great China area. Further, in Japan and overseas,
we will continue to promote employee awareness as to the
hotlines’ existence and analyze case studies to help enhance
the skills of advisors. In these ways, Omron will improve its
response to whistle-blowing.
Compliance and Risk Management