Pentax 2007 Annual Report Download - page 30

28
●Number of Shareholders and Shareholding Ratio
100,000
80,000
60,000
40,000
20,000
0
(People)
60
50
40
30
20
10
0
(%)
2001 2002 2003 2004 2005 2006 2007
Number of shareholders
Foreign stockholding ratio
Individual stockholding ratio
control systems are functioning as they should, ensures
that there is no dishonesty, and checks for possible areas
for improvement, etc. Problem areas that come to light as a
result of audit procedures become subject of a
recommendation for improvement. Particularly important
matters are reported to the Audit Committee and the Board of
Directors, as well as to the executive officers. The executive
officers decide upon and issue directives for speedy, appropriate
responses.
To achieve the best results from internal control systems, it is
important that all employees performing duties for an organization
work to foster greater awareness. The Hoya Group has
established a set of Business Conduct Guidelines that clarify the
guiding principles under which each employee should perform his
or her duties, with resolute adherence to work ethics, and Hoya is
engaged in a wide range of employee education activities. Another
initiative, the Hoya Help Line, an internal reporting and consultative
system, was established in 2003. If there is an act that
contravenes the law or the Hoya Business Conduct Guidelines,
the Hoya Help Line ensures that Hoya can discover the
contravention and that a report will quickly reach top management,
enabling timely and appropriate action to be
taken on the issue. This helps to preserve the
integrity of the Hoya Group as a whole. The
Hoya Help Line is a dedicated system located within the
Company’s headquarters, and it can also be used as a point of
contact with external lawyers who are available to listen to
employees. This preserves anonymity and works to maintain the
system’s functional effectiveness. As at the end of March 2007,
the system had been introduced in Japan, the United States and
in group companies in Thailand, which has the largest number of
employees on a global basis. The intention is to continue to
expand the number of countries covered, giving the Hoya Help
Line worldwide coverage.
Building an Internal Controls Reporting System
Hoya has responded to the Japanese version of the Sarbanes-Oxley
law (dubbed “J-SOX”)* by newly forming an Internal Controls Group
and appointing full-time staff thoroughly familiar with accounting and
audit procedures. The Group has already commenced work on
documentation in order to elucidate the Hoya Group’s state of
preparedness in relation to its internal controls over financial reporting
and is in the process of developing operational as well as assessment
systems for internal controls. Working towards the law coming into
effect in April 2008, the effectiveness of internal control systems will
be inspected and verified in stages, and where necessary,
improvements will be instituted.
* An internal controls reporting system required under Japan’s Financial Instruments
and Exchange Law, which was promulgated in June 2006 and which will come into
effect and apply to fiscal periods beginning in or after April 2008. Covering publicly
listed companies, it seeks to strengthen internal controls through assessments of
internal controls relating to financial reporting by management, and audits by
certified public accountants. The law is designed to boost overall reliability and trust
in corporate disclosure.
Full Disclosure and Investor Relations Activities
Hoya believes that fair and prompt disclosure of information and
other investor relations activities are a fundamental duty of
management. The Company respects the rights of its
shareholders concerning appropriate disclosure of information. It
also values communication with shareholders, and it continues to
clearly reflect their views in its management practices.
In 1998, Hoya began the disclosure of quarterly financial
statements ahead of many other Japanese firms, and has
gradually shortened the period between the end of each quarter
and the disclosure, and the volume of information is the same as
that contained in the year-end financial reports. The Company
continues to strive to increase the speed of disclosure and
broaden the content. Top management actively participates in
investor relations activities. For example, the CEO attends
investor meetings that are held each quarter to discuss quarterly
financial reports, where he explains strategy and fields questions.
In the fiscal year ended March 2007, Hoya devoted additional
energies to interaction with individual shareholders and investors.
For example, it held seminars across Japan for individual investors.
Since 2003 the ratio of shares held by foreign shareholders has
been maintained at a high 50% or so. More recently, the number
of individual shareholders has also risen rapidly, and in the fall of
2006 Hoya conducted a survey focused on the Company of
Japanese shareholders, and received many valuable comments
and opinions. Respondents gave good marks to the Company for
its growth, stability and technical strengths, and expectations for
the future were also high in these areas. Valuable feedback was
also given regarding returns on shareholder investment and
investor relations activities. Hoya plans to refer to the results of
the survey in its investor relations work in the future. Hoya will
continue to respond to the
increasingly diverse wishes of its
shareholders, and will strive to
further improve its investor
relations activities, aiming to
achieve even higher levels of
corporate transparency.
HOYA Business Conduct Guidelines is distributed to all employees
Hoya’s seminar for individual investors
(Year)