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7Annual Report 2013 Operational Review
In addition, the Group will increase efforts to build
systems to support the fulllment of its responsibilities
toward all of its stakeholders. The Group will conduct
regular yearly reviews of its policy for the development
of internal control systems that ensure appropriate
operations. Moreover, the Group will undertake reviews
of that policy as needed and steadily develop systems in
accordance with the policy. Centered on the Integrated
CSR Enhancement Committee, the Group’s corporate
social responsibility activities will establish systems and
heighten the effectiveness of activities in all areas,
including rigorous risk management for environmental
protection, product safety, compliance, and disaster
prevention and safety initiatives; employee education;
and corporate citizenship activities.
Since being informed of the investigation by the U.S.
Department of Justice (“DOJ”) in May 2012 regarding
anti-competitive activities with competitors in relation to
the sales of automotive anti-vibration rubber products
(“AVP”), the Company has been fully cooperating with the
DOJ. Through the investigation, the Company became
aware that certain employees had engaged in certain
acts in violation of U.S. antitrust laws from 2001 to 2008.
Therefore in February 2014, the Company entered into
a plea agreement with the DOJ in which the Company
agreed to pay a ne of U.S.$425 million. As a result,
the Company has recorded an extraordinary loss of
¥44.7 billion for the fourth quarter of scal year 2013.
The plea agreement is subject to approval by the U.S.
Federal District Court.
Following the investigation into the marine hose
cartel in May 2007 and the voluntary disclosure of
possible inappropriate payments to foreign government
ofcials in February 2008, the Company has engaged in
extensive remedial efforts, including reinforcement of
compliance trainings, reformation of the corporate
governance structure, and establishment of corporate
rules to prevent improper acts. As a result of these
efforts, anti-competitive activities relating to AVP ceased
in 2008. The Company remains committed to pursue
ever higher levels of its corporate governance and
compliance across the entire group companies worldwide
in order to regain its trust.