Nikon 2013 Annual Report Download - page 25

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NIKON CORPORATION A N N U A L R E P O R T 2 0 13
Internal Control System
The Nikon Group’s basic policy on its internal control
system was established in accordance with Japan's
Companies Act and its enforcement regulations, enacted
in May 2006, in order to create a structure for ensuring
appropriate business operations.
The Internal Control Reporting System, based on
the Japanese Financial Instruments and Exchange Act
(J-SOX), was introduced in April 2008 with the aim of
ensuring the reliability of financial reports. In accordance
with this law, Nikon has established and implemented
internal controls, to ensure the reliability of financial
reporting, that complies with the basic internal control
framework specified by the Standards of the Financial
Services Agency and other criteria.
The Internal Audit Department, independent from other
operational departments and under the direct control of
the president, conducts separate evaluations based on
J-SOX, as well as audits of the Nikon Group’s systems and
their operational status, such as whether departments
are conducting operations in accordance with laws,
internal regulations and other rules, and whether risks
are effectively managed. The department then submits
recommendations for improvement.
In addition, internal audit sections have been established
for each region to audit overseas Group companies. These
sections perform internal audits and J-SOX evaluations
of their local companies from an independent position,
while Nikon Internal Audit Department coordinate these
activities. In order to further improve the quality of internal
audits of overseas group companies, we also established
an internal audit section for the Americas in a North
American holding company in June 2011. In this way we are
making efforts to construct an internal audit system that
covers all four regions worldwide, namely Japan, Europe,
Asia–Oceania and the Americas.
The CSR Medium Term Plan
The Nikon Group has actively promoted the concept of
CSR since 2006, when “CSR-oriented management”
was adopted as a goal of its Medium Term Management
Plan. Since then, Nikon has implemented a number of
measures to achieve this goal, including the establishment
of the CSR Committee, formulation of the Nikon CSR
Charter, development of a medium term plan for CSR and
participation in the United Nations Global Compact initiative.
In this three-year plan (April 2013 to March 2016), we
have set five priority issues that are common to the entire
Nikon Group: 1) Expansion and promotion of environmental
management; 2) Implementation of compliance activities;
3) Respect for human rights and work environments, and
promoting diversity in the workforce; 4)Promotion of social
contribution activities; and 5) Promotion of CSR activities in
the supply chain. We have developed a medium term plan
based on these priorities, and will implement measures to
achieve them. Nikon will deploy its CSR-oriented business
activities globally in order to meet the expectations of
stakeholders, and be sincerely deserving of their trust.
CSR Initiatives
The Nikon Group emphasizes CSR-oriented management in its business conduct, in the belief that the
proper conduct of corporate social responsibility (CSR) will allow us to realize our corporate philosophy of
“Trustworthiness and Creativity.”
CSR Structure
The Nikon Group, for the efficient and effective promotion
of CSR, has established the CSR Committee chaired by
the president, which makes decisions regarding CSR
activities in general. Two cross-divisional, specialist
subcommittees, the Business Conduct Committee and the
Environmental Committee, have also been established,
which liaise with the CSR Committee. Since a substantial
proportion of the Nikon Group’s sales and workforce is
outside Japan, implementing CSR activities at overseas
Group companies is important. Accordingly, Nikon is
strengthening its CSR structure overseas. A structure
to administer CSR at Group companies in the China and
Hong Kong region was established in the fiscal year ended
March 2012, and a similar structure for Europe was put in
place in the fiscal year ended March 2013. In the fiscal year
ending March 2014, Nikon will expand its CSR framework
to the Asia-Pacific region, and establish an organizing
structure for the Americas.