Internal Control and Compliance

The Company has the Internal Control System to discharge corporate responsibilities including corporate ethics and compliance.

Basic System of Internal Control

Schematic diagram of Internal Control

The Company has the Internal Control Committee consisting of Directors and Executive Officers which deliberates internal control matters including corporate ethics and compliance.

The Internal Control Committee receives reports from related sections, committees and subsidiaries on the status of design/ operation of systems and policies in terms of compliance, information control, risk management, efficiency of business execution, and group governance.

The Committee deliberates global internal control matters. Each section and subsidiary conducts self-assessment on internal control every year to clarify issues for the continuous improvement in internal control.

Compliance System

While the global business of the Group developing, to discharge corporate responsibilities including corporate ethics and compliance, each of us should be aware of society through our daily work and take initiatives.

To respect culture and customs of various countries and regions and develop global business more at the same time, “Musashi Compliance Guidelines” have been defined as shown below to specify our daily efforts.

“Musashi Compliance Guidelines” written in Japanese and English as principle languages have been translated into the language of each region and country to share the understanding with all of the Officers and employees of each Group company through various education and training opportunities.

Musashi Compliance Guidelines

  1. We will actively participate in activities that contribute to the well-being of society.
  2. We will freely and willingly comply with all laws and regulations.
  3. We will seek ways to protect the environment.
  4. We will strive to provide a safe and healthy working environment.
  5. We will abide by all traffic rules and regulations and drive safely.
  6. We will respect and embrace the uniqueness and differences of each individual. We will respect human rights and will not tolerate forced or child labor, or any form of harassment.
  7. We will do our utmost to respect and protect each individual’s privacy.
  8. We will pay the utmost attention to the appropriate handling of confidential information including drawings, documents, information and data.
  9. We will conduct fair and sound transactions. We will not enter into any improper trade agreements or cartels, or abuse any dominant bargaining positions.
  10. We will reject all contacts with organizations involved in activities in violation of laws or accepted standards of responsible social behavior and safety.

Compliance System

Schematic diagram of Compliance Management system

The Company promotes a systematic approach: the appointment of a Director as a Compliance Officer who promotes compliance, and the deliberation of corporate ethics and compliance matters in the Internal Control Committee.

An annual self-assessment is conducted with a checklist to see the status of compliance. Measures are taken against high risk items according to plans.

The Company also sets a section in charge of grasping information on the amendment of laws related to our business, which informs the legal amendment company-wide immediately and reflects the self-assessment checklist.

Whistle Blowing System

Open Door

The Company provides Musashi corporate ethics window, a whistle blowing window, (so called “Open Door”) to receive suggestions on corporate ethics and compliance.

This system is designed to preserve the privacy of the person who made the proposal and to protect him/her so as not to suffer disadvantage by proposing. And anonymous proposal can be accepted.

To make it more effective, there are 3 windows; an internal window, Audit & Supervisory, and an external lawyer to provide a better environment for making suggestions.

Risk Management and Business Continuity Management

Risk Management System

The Company has established a risk management system appointing one of the Officers as a Risk Management Officer who promotes a systematic risk management activities.

Risk management at ordinary times includes measures by each section for risk reduction/moderation and preparation of procedures in case of risk. Self-assessment is conducted on a regular basis to see the status of management for continuous improvement.

Crisis Response and Business Continuity Management

The Company has regulations which define what the organization and employees should do in case of crisis. Also, the regulations have been applied in the Group companies.

In Japan, the Company has created a Business Continuity Plan (BCP) intended for a large-scale earthquake as one of the biggest risk in business continuity. Education and training based on BCP is provided on a regular basis. We reflect drill results and update/revise BCP periodically to improve the capability against risk in business continuity.

Basic Policy of BCP
Business continuity management system
For further information, please see our reports.