Fujitsu 2012 Annual Report Download - page 94

program in the future in accordance with related laws and regu-
lations. Nevertheless, the Group faces potential risk from lawsuits
initiated by employees in regard to compensation for innovation
created in the workplace.
5) Human Resources
The growth and profitability of the Fujitsu Group depends heavily
on human resources. As such, a major issue for the Group is the
ability to recruit, foster, and prevent the attrition of talented
technical experts, system engineers, managers, and other key
personnel. The inability to do so could negatively impact the
Group’s growth and profitability.
6) Environment
Making contributions to society and protecting the environment
are part of the corporate values of the Fujitsu Group, as set forth
in the Fujitsu Way. While committed to minimizing environmen-
tal burden and preventing environmental pollution in accordance
with the Fujitsu Group Environmental Policy, the Group cannot
guarantee that environmental pollution will not occur as a result
of its operations. Moreover, although we monitor soil and waste-
water as well as engage in clean-up activities at former factory
sites, this does not mean that pollution will not be found at such
sites in the future. In the event that environmental pollution
were to occur or be identified, social trust in the Group may
weaken, and clean up and other costs could be incurred, which
would adversely affect the Group’s earnings.
7) Information Management
In order to safeguard the personal and confidential information
of customers, business partners, and the Fujitsu Group itself, the
Group has taken such measures as establishing strict regulations,
instituting training programs for employees, upgrading its infor-
mation infrastructure and providing consultation to business
subcontractors. Nevertheless, the Group cannot guarantee that
information will not be leaked. In the unlikely event that this
should occur, trust in the Fujitsu Group could decline and the
Group may be obligated to pay damages to customers.
The Fujitsu Group has a well-developed system in place to
ensure the integrity and stable operation of critical in-house
networks, which are a key element of our business infrastructure.
However, the Group cannot guarantee the ability to prevent
computer viruses, cyber attacks or other disruptions from imped-
ing network operations and leaking information.
8) Credit Ratings and Other Factors that Affect the
Group’s Credit
In addition to having a major influence on financing, credit ratings
by outside institutions serve as reliable sources of information for
our customers when they conduct transactions with us. Lower
credit ratings caused by failure to meet earnings targets, deterio-
rating financial conditions, and other reasons could influence our
ability to secure financing and place the Group at a disadvantage
in bidding for projects and in other business dealings.
9) Litigation
The Fujitsu Group may become the subject of litigation in the
course of executing its operations, resulting in an obligation to
pay unforeseen damages. Depending upon the amount of
damages the profit and loss of the Fujitsu Group may be materi-
ally impacted.
7. Natural Disasters and Unforeseen Incidents
Natural disasters and other unforeseen situations could have a
major impact on the business results and financial standing of
the Fujitsu Group. Examples of the potential risks posed are
found below.
1) Damage from Earthquakes, Other Natural Disasters,
and Accidents
The Fujitsu Group has instituted a Business Continuity Plan
(BCP), which is continually reviewed and improved, to ensure
that, even in the event of natural disasters like earthquakes,
major floods, or volcanic eruptions, as well as accidents or the
outbreak of infectious diseases like new forms of influenza, we
can continue our critical business operations to fulfill our corpo-
rate social responsibility, while at the same time continuing to
provide a stable flow of high-quality, highly reliable products and
services, which our customers rely on for their business. Last
fiscal year there were several large-scale disasters, including the
Great East Japan Earthquake, the nuclear power plant accidents
and the ensuing electrical power shortages, and the floods in
Thailand. Going forward, there is also a possibility that unfore-
seen events may occur, such as major earthquakes in the Tokyo
metropolitan area, the Tohoku region or along the Nankai
Trough, or a prolongation of power shortages in Japan. Based on
the fact that such events could disrupt operations, the company
is making every effort to ensure the continuity of key businesses.
Having dealt with the Great East Japan Earthquake, we have
taken steps to make our sites resistant to earthquakes and we
conduct regular site inspections, along with disaster-readiness
drills. Nevertheless, there is a possibility that the Group may be
forced to suspend the delivery of products and services to cus-
tomers or its support for customer information systems in the
event an unforeseen natural disaster or accident forces sites to
suspend operations, inflicts damage to facilities and equipment,
interrupts the supply of electricity or water, disrupts public trans-
portation or communications infrastructure, or causes damage to
our supply chains.
2) Geopolitical Issues
Armed conflicts, terrorism, political instability, currency crises,
and other events in nations or regions where the Fujitsu Group
operates could have a significant impact on its businesses.
8. Risks Associated with Financial Statements
For details, please refer to “Critical Accounting Policies and Esti-
mates” on page 102.
092 FUJITSU LIMITED ANNUAL REPORT 2012