Epson 2015 Annual Report Download - page 37

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36
will meet to hear and discuss important matters concerning the Company’s compliance program. It will
report its findings and offer opinions to the board of directors.
(4) Compliance promotion and enforcement will be supervised by the president of Seiko Epson. Group-wide
compliance programs will be carried out by Head Office supervisory departments with the cooperation of
departments in the various operations divisions and subsidiaries. Compliance programs of the divisions and
their related subsidiaries will be promoted by the respective chief operating officers of the divisions. A
dedicated compliance department will help to ensure the coverage and effectiveness of compliance
programs by monitoring compliance across the Epson Group and by taking corrective action or making
adjustments where needed.
(5) The Corporate Strategy Council, an advisory body to the president comprising members of the board of
directors of the Company, will address important matters with respect to compliance promotion and
enforcement in the Epson Group as a whole, including subsidiaries. The Council will strive to ensure the
effectiveness of compliance by exhaustively discussing and analyzing the implementation of programs for
assuring observance of statutes, internal regulations, business ethics, and initiatives in high-risk and other
key areas.
(6) The Company, including its subsidiaries, will strive to provide an effective whistleblowing system.
Employees will be encouraged and will be able to easily and immediately report compliance violations
using internal and external hotlines and e-mail addresses. Controls will be in place to protect
whistleblowers from reprisal, and allegations will be reported to the Company’s corporate auditors, the
Compliance Committee, and the Corporate Strategy Council in a way that whistleblowers cannot be
identified.
(7) The Company will strive to enhance legal awareness by providing Epson Group employees with
web-based training and other educational opportunities.
(8) The president of Seiko Epson will periodically report important compliance-related matters to the board of
directors and will take measures as needed to respond to issues.
(9) Epson’s “Principles of Corporate Behavior” states that the Company will have no association whatsoever
with antisocial forces. The Company takes a firm stance in rejecting any and all contact with antisocial
forces that threaten social order and security.
Business execution system
(1) The Company will formulate long-term vision statements and mid-range business plans, and it will set
clear medium- and long-range goals for the Epson Group as a whole.
(2) The Company will institute a system that will ensure the appropriate and efficient execution of business.
To that end, the Company will establish regulations governing organizational management, levels of
authority , the division of responsibilities, and the management of affiliated companies, thus distributing
power and authority across the entire Group.
(3) Personnel responsible for business operations will report the matters below to the board of directors at least
once every three months.
• Current business performance and performance outlook
• Risk management responses
• Status of key business operations
Risk management
(1) The Company will establish a basic risk management regulation that stipulates the risk management
system of the Company, including its subsidiaries, and that defines the organization, risk management
methods and procedures, and other basic elements of this system.
(2) Overall responsibility for risk management in the Epson Group, including subsidiaries, will belong to the
president of Seiko Epson. Group-wide risk management will be carried out by Head Office supervisory
departments with the cooperation of the operations divisions and subsidiaries. Risks unique to an
individual business will be managed by the chief operating officer of that business, including subsidiaries
consolidated under it. The Company will also set up a department that will supervise risk management,
monitor overall risk management Group-wide, make corrections and adjustments thereto, and ensure the
effectiveness of risk management programs.
(3) The Corporate Strategy Council strives to ensure effective management of serious risks that could have an
egregious affect on society by dynamically and exhaustively discussing and analyzing ways to identify and