Panasonic 2010 Annual Report Download - page 46

Internal Control Systems
Compliance
The Company has published the Panasonic Code of Conduct
in 22 languages as a unified global standard that spells out in
concrete terms how its management philosophy should be
implemented. The code applies to all the Panasonic Group’s
Directors, Executive Officers, and employees. On October 1,
2008, the current name of the code was adopted with the
renaming of the Company and unification of its brands; the
previous name was the Matsushita Group Code of Conduct.
At the same time, the new code more clearly expresses the
“Panasonic Brand Identity” and the Company’s basic
approach to responding to social demands regarding corpo-
rate social responsibilities (CSR). Panasonic has also formu-
lated and applies a Code of Ethics for Directors and Executive
Officers stating the fundamental matters the Company’s top
management must observe in terms of ethics.
In addition, the Company has created a Corporate
Compliance Committee, which is chaired by the President
and made up of relevant Directors, Executive Officers and
Corporate Auditors. This committee discusses important
compliance issues and responses, and communicates com-
pliance policy to the entire company. Furthermore, the
Company has appointed Directors and Executive Officers in
charge of ensuring compliance with the code, as well as legal
affairs, fair trade and export control managers at business
domain companies, overseas regional headquarters and
other entities. Through close-knit cooperation, the Company
works with these individuals to ensure compliance in every
area of frontline operations.
During “Compliance Awareness Month” every fall, mes-
sages are sent from the President and other management
regarding compliance, tests are conducted to assess under-
standing of compliance, worksite discussions are held and
other activities are conducted in regions around the world.
Panasonic also focuses on enforcing policy, creating frame-
works to ensure compliance, education and training and
monitoring activities with respect to fair trade based on
observance of antitrust laws and trading compliance based
on export administration laws, which the Company sees as
particularly important issues.
In order to assess the degree to which a compliance
mindset has permeated the Company and identify issues in
workplaces, Panasonic conducts compliance awareness
surveys of employees regularly and uses the results to formu-
late initiatives and find solutions to issues. Furthermore, the
Company has established several hotlines in each field to
enable employees in Japan and overseas to seek advice or
blow the whistle on inappropriate acts they find in the course
of business operations. Panasonic is also working to ensure
financial soundness by establishing a Hotline for Auditors, a
system whereby Corporate Auditors directly receive concerns
from employees and other individuals with regard to account-
ing or auditing irregularities.
Risk Management
Panasonic manages Companywide risk based on the man-
agement philosophies of founder Konosuke Matsushita: “worry
Basic Risk Management Framework
Plan Do Check Action
G&G Risk
Management
Committee
Assess risk Identify significant
corporate risks
Confirm activities:
“monitor”
Corporate
Functions Assess risk
Identify
important
corporate risks
Promote risk
countermeasures
Confirm
activities:
“monitor”
Improve and
promote
countermeasures
Business
Domains Assess risk
Identify
important
business domain
risks
Promote risk
countermeasures
Confirm
activities:
“monitor”
Improve and
promote
countermeasures
Administration
and support
Administration
and support
44 Panasonic Corporation 2010
Corporate Governance