Social Responsibility

Corporate Governance

Internal Controls

Internal Control Measures

Resolution adopted to establish internal control systems at direct subsidiaries

In recent years, corporate scandals and lack of compliance have become matters of social concern. To prevent misconduct, management needs to implement stronger internal control systems.
Japan's Company Law, which took effect in May 2006, obliges companies to construct internal control systems.
In March 2009, the Board of Directors of Konica Minolta Holdings, Inc. reviewed the Group's internal controls and adopted a resolution to update its internal control system, an outline of which was published in the annual securities report for fiscal 2008 ended March 2009. The resolution was duly adopted by each board of directors of all direct subsidiaries of Konica Minolta Holdings, even those to which the definition of “large companies” in Japan's Company Law does not apply, to comply with the Group's internal control policies.
Konica Minolta strives to ensure the legality, rationality, and efficiency of its business activities by reviewing, as occasion demands, its systems and rules of supervision and operations pertaining to all business across the Group.

Complying with Japan's Financial Instruments and Exchange Law

The entire Konica Minolta Group has been working towards J-SOX compliance

The Japanese Financial Instruments and Exchange Law(JSOX) has been adopted in order to prevent corporate accounting fraud and ensure reliability of financial reporting since the beginning of fiscal 2008. Under J-SOX, the submission of an internal controls report and audit certification is required. The Group companies have been preparing for the application of J-SOX since fiscal year 2006 and have developed a design implementation structure that includes the documentation, evaluation and remediation of internal controls, and performed operating effectiveness evaluation tests. In addition, an internal controls report was prepared and submitted in June 2009 with Japanese Annual Security Reports after the internal controls audit by external auditors.
In preparing for these internal controls, the Group has implemented a questionnaire-based internal evaluation of 95 Group companies, including subsidiaries in Japan and overseas. Seventeen principal companies, in particular, documented the workflow in the sales process and other areas, identified risks related to financial reporting, and reconfirmed the importance of internal controls.
Furthermore, mechanisms such as mutual cross-evaluations between different business companies in the Group are utilized to ensure objectivity in internal evaluations.
Konica Minolta will continue ongoing efforts for improvement, including the Group-wide sharing of issues discovered through the experience of the first year.