Canon 2014 Annual Report Download - page 25

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C
ORPORATE
S
TRUCTURE
U
INE
EGMEN
FINANCIAL
S
ECTIO
N
CORPORATE DAT
A
STRATEGY 23
business efficacy and efficiency, compliance, and infor-
mation security. Audits results are reported to the CEO
and Audit & Supervisory Board and complement audits
conducted by members of that board.
Accounting Auditors
The Company has an auditing service contract with its
independent auditor, Ernst & Young ShinNihon LLC, to
audit its financial statements. To check the validity of the
audits, the Company’s Audit & Supervisory Board members
receive detailed explanations from the accounting auditors
about the quality management system regarding audits.
With the aim of monitoring the independence of the
accounting auditors, the Company introduced a prior
approval system by the Audit & Supervisory Board for
contents of auditing and other service contracts and rel-
evant fees. Based on “policies and procedures of the prior
approval for both auditing and non-auditing services,”
each contract is closely reviewed for prior approval.
Compliance
Shortly after its founding, Canon established the San-Ji
(“Three Selfs”) Spirit principles: “self-motivation,” or taking
the initiative and being proactive in all things; “self-man-
agement,” or conducting oneself responsibly and being
accountable for all one’s actions; and “self-awareness,” or
The San-Ji (“Three Selfs”) Spirit, passed down from the initiation of the company, is one of
Canon’s guiding principles. The three are “take the initiative and be proactive in all things”
(Self-motivation), “conduct oneself with responsibility and accountability” (Self-management),
and “understand one’s situation and role in all situations” (Self-awareness). (calligraphy by
Canon’s fi rst president, Takeshi Mitarai)
understanding one’s situation and role in it. In 2001,
Canon established the Canon Group Code of Conduct,
inspired by the above Three Selfs. The Code has been
translated into 14 languages from Japanese, and each
Group company makes efforts to enforce the Code.
Countering Antisocial Forces
Canon has a basic policy prohibiting relationships of any
kind with antisocial forces that represent a threat to social
order and security. To uphold this basic policy, Canon has
established a department dedicated to activities aimed at
countering such parties while reinforcing cooperative ties
with applicable public authorities. In addition, Canon’s
Employment Regulations include a clause prohibiting
such relationships, and the Company continues to step up
efforts to ensure strict employee adherence.
Risk Management
As Canon expands its business on a global scale, busi-
ness and other risks to which it may be exposed con-
tinue to diversify. In accordance with policies of its Risk
Management Committee, Canon calculates and investi-
gates conceivable risks across the entire Group. Canon
also strives to prevent or minimize the emergence of risk
by formulating company regulations and other rules
and conducting employee education.