Social Responsibility
About
Risk Management
To prepare for the various types of risks encountered in our business activities, we have reformed our risk management systems with the ultimate goal of maximizing profits by minimizing losses.
Initiatives for Controlling Predictable Risks
Reforming the Conventional Risk Management System under the Internal Control Enhancement Program
As part of our efforts to enhance internal control, the Konica Minolta Group established the Risk Management Committee with the aim of maximizing the Group’s profits by minimizing losses through rational decision-making in regard to risk management initiatives.
The Risk Management Committee is chaired by an executive officer appointed by the Board of Directors of Konica Minolta Holdings, Inc. The Committee members comprise executive officers responsible for various functions of Konica Minolta Holdings, and presidents of its business and common function companies.
To ensure effective operation of the Risk Management Committee, we have formed two subcommittees: the Business Risk and the Crisis Management subcommittees. In both subcommittees, members discuss practical measures toward realizing their objectives.
Activities of the Business Risk Subcommittee
The Business Risk Subcommittee supports the efforts of Group companies to establish and fortify systems for managing risks involved in implementing each company's Medium-Term Management Plan “Forward 08,” and annual budget. The Subcommittee also supports the management of risks associated with business strategies, including growth strategies of individual business areas, M&A, and the launching of new businesses.
The Subcommittee implements risk management through continual rotation of the PDCA (Plan-Do-Check-Act) cycle.
Activities of the Crisis Management Subcommittee
Succeeding to the function of the former Crisis Management Committee, the Crisis Management Subcommittee works to maintain the Konica Minolta Group's corporate value, carrying out tasks by maintaining close partnerships with the crisis management committees of Group companies engaged in global businesses. Moreover, in joint efforts with various Konica Minolta Holdings' committees that govern internal control systems, Subcommittee members work to build a Group-wide governance system with the aim of enhancing Konica Minolta's corporate value.
At Konica Minolta, we have classified the crisis risks to be handled by the Crisis Management Subcommittee into 13 categories. Based on thorough analyses of various factors and details of those risks, we have decided upon the measures to be taken in the following three phases: non-emergency, emergency, and post-emergency. The Subcommittee maintains close communications with all Group companies. By maintaining constant activity on the emergency networks between Konica Minolta Holdings and respective Group companies' crisis management committees, the Subcommittee can gain real-time information from all Group companies, not only in Japan, but also in various parts of the world.
We encourage Group companies to inform us of any sign of risk. Even if there is no sign of emergency, we regularly collect reports, which are summarized in our monthly reports for submission to top management.
| Factors | Examples | |
|---|---|---|
| 1 | Defective products, recalls, product liability lawsuits | Design errors (faulty products, health hazards), errors in manufacturing processes (faulty products, foreign substances contained in products) etc. |
| 2 | Defective services | Inappropriate explanations, discriminatory attitudes toward customers etc. |
| 3 | Personnel-related problems | Ambiguous performance evaluation standards, unfair transfer, human rights infringement such as employment discrimination and harassment, crimes/scandals involving employees etc. |
| 4 | Labor-related problems | Labor disputes, unfair labor practice, child labor, forced labor, occupational health hazards, employee death or suicide caused by overwork etc. |
| 5 | Corporate negligence | Pollution (soil, wastewater, odor), industrial accidents (health and safety hazards, accidents) etc. |
| 6 | Company's unethical conduct | Contacts with illegal groups, scandals, internal disputes, M&A etc. |
| 7 | Inappropriate decision-making on management and marketing | Risks involved in investments, loans, bonds and transactions; excessive competition etc. |
| 8 | Corporate crimes | Illegal acts (violation of Antimonopoly Act, Premiums and Representation Act, Subcontract Act, Tax and Commercial Laws etc.) |
| 9 | Intimidation and other crimes committed against the Company | Obstruction of business (inserting foreign substances in products etc.), robbery, subversive activities etc. |
| 10 | Economic and social disturbances | Oil crises, major power failure, sharp decline in stock prices etc. |
| 11 | International/political upheavals | War, coups, trade conflicts etc. |
| 12 | Disasters and epidemics | Earthquakes, storms and floods, fires, epidemics etc. |
| 13 | Rumors concerning management instability | Incorrect information by mass media, spreading rumors through various channels, including the Internet etc. |
Konica Minolta's Initiatives for Improving Disaster Preparedness
Preparation of Business Continuity Plans Encompassing Supply Chains
The Konica Minolta Group believes that one of the most important missions of a global enterprise is to continue its business—even in the event of disaster. As a global enterprise, we are fully aware of this mission, and strive always to improve our disaster preparedness. If we do suspend operations, we should resume them as soon as possible, since suspension of our business can affect our stakeholders worldwide. To minimize any such negative effect on our customers and other stakeholders, each Group company has begun reviewing and improving its Business Continuity Plan. First, each Group company designates essential businesses that cannot be suspended, and identifies any production and supply bottlenecks that must be eliminated in order to ensure continual operation of these businesses. Next, they consider measures for protecting such essential businesses, together with alternative means.
From a global perspective, each Group company is currently striving to improve its Business Continuity Plan so that it encompasses supply chains.
Improving Our Preparedness for Large Earthquakes
Earthquake hazards comprise the greatest menace for any enterprise operating in Japan. Given the recent series of earthquakes, including the 2004 Niigata Chuetsu Earthquake, many people abroad are concerned whether or not Japanese industries are prepared for such risks.
At the Konica Minolta Group, we believe that improving our preparedness for major earthquakes will ultimately lead to our building a solid structure that is effective against other disasters as well. To ensure continual operation even in emergency, we are always working to improve our disaster preparedness. In this effort, we place particular priority on improving preparedness for potential earthquakes, most notably large earthquakes in the Tokai and Tonankai regions, along with the Tokyo metropolitan area. For instance, in the Kansai region (approximately 550 km from Tokyo), we have established a Group emergency headquarters that will take over the functions of our head office in Tokyo to ensure our business continuity, should metropolitan Tokyo be hit by an earthquake. At the same time, we have prepared a Contingency Plan to support reconstruction of any damaged facilities.
Moreover, all Group companies take part in annual disaster drills, all held on the same day, under the leadership of the president of Konica Minolta Holdings and other top management.
After the Great Hanshin-Awaji Earthquake (1995), regrettably, it took nearly a week to confirm the safety of all our employees and their families living in the affected area. Based on this experience, we have developed our original safety confirmation system. Under the new system, employees living or working in an area hit by a large earthquake (seismic intensity 5 or above) should provide safety information to the host system via their PCs or mobile phones. We hold periodic drills so that employees can thoroughly learn the reporting procedures.
Providing Action Manual
To ensure that employees remain calm and take appropriate action in the event of a large earthquake, we provide each employee working in our Group companies in Japan with a handbook titled "Action Manual in the Event of an Earthquake."
Priority in the Event of Disaster
- Ensure safety of employees and their families.
- Minimize aftereffects.
- Maintain business operations or resume them as quickly as possible.
- Participate in local disaster reduction activities.
