NITTO DENKO GROUP CSR & Annual Report 2012

CSR & Annual Report 201211great sense of professional ethics and a wealth of good sense.The Nitto Denko Group carries out many internal and other audits related to export control, unethical trading, the environment, safety and quality by specialty units. The results of these audits are reported to the department responsible and the relevant management teams. Any problems identified are considered and followed up with strategies initiated to rectify the situation as speedily as possible. We have also implemented the internal control evaluation measures which are outlined in the Financial Instruments and Exchange Act. These measures focus on six areas: “control environment”; “risk evaluation and response”; “control activities”; “information and transmission”; “monitoring”; and the “handling of IT”. We believe that in order to enhance future governance, it is necessary to successfully combine our internal audits with the internal control evaluation measures.In order to prevent misconduct, accidents and to keep our losses at a minimum, the Nitto Denko Group actively manages risk. We consider risk management to be an important component of good governance.Risk management concerns all of our business activities, as well as any accidents and disasters that may occur globally. The CSR Committee investigates any risk areas that may present as serious concerns to management. Any potential risk areas are prioritized and the relevant departments are then engaged in a process focused on putting in place countermeasures aimed at prevention and transformation.We have two problem-solving avenues available to employees, one of which is internal and the other being a helpline. Every employee is able to utilize either avenue in situations where the issue concerned relates to the Group. When any violation of the law or corruption is uncovered, the first step undertaken is for the employee to inform and consult their manager. In cases where the situation is not resolvable within the organization, it is then likely for the employee to contact the helpline information desk.In fiscal 2011, there were some employees who utilized the helpline. We settle issues while ensuring the protection of whistleblowers.On the basis of the experience of the Great Hanshin Earthquake in 1995, a possible Tokai earthquake, the probability of an earthquake occurring somewhere else in Japan in the future, and the official announcement by the Cabinet Office of “Business Continuity Guidelines”, the Nitto Denko Group issued the first edition of a countermeasure manual for use in the event of an earthquake, in 2006. After making improvements to the manual following our experience of the Great East Japan Earthquake on March 11, 2011, we issued a revised edition: Business Continuity Manual (Earthquake Edition) in September of the same year.Following are the four basic policies contained in the manual:1.Respect for human lifeWe will place maximum priority on ensuring the safety and relief of employees and their family members.2.Prevention of secondary disastersWe will work for the prevention of secondary disasters, such as fire or solvent spillage, striving to avoid disrupting the local community.3.Responsibility for supplying productsWe will provide essential products and services for maintaining the normal functioning of society.We will strengthen supply chains to enable resumption in the manufacture of essential products.4.Supporting the local communityWe will provide help to ensure the safety, relief and restoration of neighboring regions.In the future, we will issue editions of the countermeasure manual for use in the event of a massive blackout, flood, or other contingency as needed.Conducting CSR training sessions for management-level employees and supervisors overseas since fiscal 2011