Canon 2015 Annual Report Download - page 25

CANON ANNUAL REPORT 2015 23
STRATEGY BUSINESS SEGMENT CORPORATE STRUCTURE FINANCIAL SECTION CORPORATE DATA
asset statuses of the Company and its subsidiaries. In these
ways, the Audit & Supervisory Board meticulously checks direc-
tors’ and others’ execution of the company operations, includ-
ing establishment and operation of the internal control system,
thus is fulfi lling a management oversight function. The Board
also works in close alliance with the Internal Audit Division and
the accounting auditors to improve the effi cacy of monitoring.
Internal Audit Division
The Corporate Audit Center, with about 70 members, is the
Company’s internal auditing arm. It conducts audits and eval-
uations and provides guidance on all operations and sectors
without exception, including those of Group companies, from
various perspectives, such as business effi cacy and effi ciency,
compliance, and information security. Audit results are reported
to the CEO and Audit & Supervisory Board and complement
audits conducted by members of that board.
Accounting Auditor
The Company has an auditing service contract with its indepen-
dent auditor, Ernst & Young ShinNihon LLC, to audit its fi nancial
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 sys-
tem regarding audits.
With the aim of monitoring the independence of the account-
ing auditors, the Company introduced a prior approval system by
the Audit & Supervisory Board for contents of auditing and other
service contracts and relevant fees. Based on “policies and pro-
cedures 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 or the
Three Selfs, are: self-motivation (taking the initiative and being
proactive in all things), self-management (conducting one-
self with responsibility and accountability), and self-aware-
ness (understanding one’s situation and role in all situations),
or understanding one’s situation and role in it. In 2001, Canon
established the Canon Group Code of Conduct, inspired by the
above Three Selfs, 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 pub-
lic 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, business and
other risks to which it may be exposed continue to diversify. In
accordance with policies of its Risk Management Committee,
Canon calculates and investigates 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.
San-ji, or the Three Selfs, are: self-motivation (taking the initiative
and being proactive in all things), self-management (conducting
oneself with responsibility and accountability), and self-awareness
(understanding one’s situation and role in all situations). (calligraphy
by Canon’s fi rst president, Takeshi Mitarai)