Bridgestone 2004 Annual Report Download - page 23

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21
Corporate Governance
The Bridgestone Way includes seven core emphases, one of which is to “understand and honor
fully the ethical values, moral practices, and legal regulations of every nation and region” where
the Companies operate. The Company has established an organization to promote and monitor
compliance with high standards of corporate ethics. That organization includes the chief compli-
ance officer, the Compliance Committee, and a full-time staff. Measures for promoting ethical com-
pliance include a “hotline” for handling employee concerns, messages from the president addressed
to all employees, initiatives by the chief compliance officer, and training sessions for employees.
Despite systematic efforts to promote compliance with high standards of corporate ethics, ethical
breaches have occurred at the Company. A recent breach consisted of anticompetitive behavior in
bidding on tire-supply contracts with the Japan Defense Agency. The Company accepted a recom-
mendation from the Japan Fair Trade Commission in January 2005 in connection with that behav-
ior. Management deeply regrets that incident and has stepped up its efforts to prevent any future
breaches.
Internal audits are the responsibility of specialty teams established in the control sector and in
each of the principal business sectors at the Company and at each of the Company’s principal
subsidiaries. The audits cover accounting and operations. Management also solicits professional
opinions as necessary from outside lawyers and financial auditors.
The Company’s president serves concurrently as chief risk-management officer. Operating under
the chief risk-management officer is the Risk-Management Committee. That committee devises
and deploys measures for preventing risks from escalating into crises and for coping effectively with
any serious emergencies that might occur. Its activities have included drafting a plan for restoring
operations promptly to full functionality after emergencies. The Risk-Management Committee has
also revised and distributed a manual that details companywide risk-management procedures.
Ethical compliance
Internal auditing
Risk management