Compliance
Basic Concept and Promotion System of Compliance
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Basic Concept
Promoting compliance, including corporate ethics and internal corporate rules
It is not only necessary to comply with laws, but also to follow corporate ethics and internal rules. Compliance of the Konica Minolta Group consists of adhering to three elements: Laws, corporate ethics and internal rules.
Konica Minolta Inc. explains the required measures to all Konica Minolta Group companies and its personnel. It implements the necessary measures under a global promotion system to strongly encourage compliance. Initially, in order to transfer the philosophy and management vision based on the "6 Values" into the actions of each individual, and to adequately express the Konica Minolta philosophy, the "Konica Minolta Group Charter of Corporate Behavior” has been revised in 2022.
Moreover, the Konica Minolta Group Guidance for the Charter of Corporate Behavior, which describes specific actions to be taken was established so that all officers and employees of the Group around the world can share an understanding of the respective items in the Charter and put them into practice of compliance.
Practicing compliance and earning stakeholder trust will lead to ongoing improvements in business performance and corporate value. Compliance is an asset that is expected to generate revenue for the Group in the future.
Konica Minolta will continue to practice compliance on a global, Group-wide scale, while taking into consideration differences in laws, cultures and customs found in various countries and regions.
Scope of Compliance at Konica Minolta
Group Compliance Promotion System
Building a system to promote consistent compliance Group-wide
At Konica Minolta, the Chief Compliance Officer, a person appointed by the Board of Directors, determines important matters for the promotion of the Group’s compliance and is responsible for promoting and overseeing compliance activities such as anti-corruption measures and personal information protection. The Chief Compliance Officer reports directly to the President and CEO of Konica Minolta, Inc., who has ultimate responsibility for Group compliance. To fulfill that responsibility, the Chief Compliance Officer convenes the Group Compliance Committee, which is composed of officers responsible for compliance from Business Units and Corporate Divisions in charge of Group-wide functions.
To promote compliance in each department at Konica Minolta, Inc., the General Manager of each department serves as the officer responsible; at subsidiaries inside and outside Japan, the president of each subsidiary serves as the officer responsible at each company. The Chief Compliance Officer reports regularly to the Audit Committee regarding progress on activities and important issues for the Group.
Note: An executive officer or a corporate vice president plays the role of Chief Compliance Officer.
Group Compliance Promotion System
Global Group Support System
Strengthening the coordination of Group compliance
The Legal Division at Konica Minolta, Inc. drafts plans to address important matters and measures regarding the promotion of the compliance, serving as a Group compliance support office assisting the Chief Compliance Officer. The Legal Division also assists each department and subsidiary with its activities, directly and indirectly, and provides support for group-wide information management.
The Chief Compliance Officer also appoints regional compliance coordinators in Europe, North America, China, and Southeast Asia, tasking them with implementing activities to promote compliance, considering the circumstances of each region.
In fiscal 2022, the Group compliance support office and regional compliance coordinators worked together to help newly acquired companies inside and outside Japan as well as small Group companies to adopt compliance measures, seeking to instill compliance throughout the entire Konica Minolta Group.
Planning Compliance Promotion and Verifying Progress
All departments at Konica Minolta, Inc. and all of its Group companies are required to carry out compliance according to a group compliance promotion plan and report their progress.
Konica Minolta identifies material issues by looking at trends in social expectations and the results of compliance risk assessments, and prepares a medium-term promotion plan. Furthermore, based on the medium-term plan, a group compliance promotion plan is prepared for each fiscal year, and each department and group company is required to implement measures accordingly. In fiscal 2022, each department, including subsidiaries under their management, formulated their own plans and implemented measures that took into consideration risks in their respective business domains.
The officers responsible for each department at Konica Minolta, Inc., and at each group company inside Japan are required to submit monthly reports on the progress of their measures, as well as any compliance issues in that department or company, to the Chief Compliance Officer. The officers responsible for compliance at each Group company outside Japan must do likewise on a quarterly basis. When a serious compliance issue arises which may cause a violation against Konica Minolta Group Charter of Corporate Behavior, it must be reported to the Chief Compliance Officer immediately.
Based on these reports submitted to the Chief Compliance Officer, the Group compliance support office and regional compliance coordinators cooperate as needed to conduct activities Group-wide. Any remaining issues are reflected in the plan for the following year.
The Corporate Audit Division, which reports directly to the President & CEO, conducts internal audits of Konica Minolta, Inc. and its worldwide subsidiaries. The audits also look at compliance, and detailed checks are made to ensure that measures are being implemented according to the annual plans of target group companies, and to confirm that the system to ensure thorough compliance is functioning properly. When an issue is identified, a corrective plan is prepared and implemented with the assistance of the support office and the relevant regional compliance coordinator. Progress is then verified through follow-up audits.
There were no significant compliance violations of the Konica Minolta Group Charter of Corporate Behavior in fiscal 2022 as noted in the “Governance Data” section of the ESG Data page.
Whistle-blowing System (Help Line)
Building and improving Whistle-blowing Systems at each Group company
In the Konica Minolta Group in Japan, the Group-wide Help Line is available so that employees can use it to seek consultation and directly contact the general manager of the Legal Division, the persons in charge of Help Line, or an outside lawyer via various channels such as telephone and email, when they become aware of any conduct that poses a risk of non-compliance.
Konica Minolta has also established whistle-blowing systems outside Japan. Konica Minolta Business Solutions U.S.A., Inc., an office equipment and solutions sales company in the U.S., has a Whistleblower's Hotline, which has served as a whistle-blowing system for its employees in North America, including its subsidiaries in Canada. In Europe, the Integrity Hotline has served as a 24-hour, multi-lingual reporting system for all Group employees in Europe. In China, a whistle-blowing system using an outside lawyer as a receiver of reports was established for all Group companies in China (excluding companies in Hong Kong). Konica Minolta Business Solutions Asia Pte. Ltd. in Singapore has established whistle-blowing Hotlines for Group companies in Southeast Asia. In addition, whistle-blowing Hotline in countries other than those listed above is handled directly by Konica Minolta, Inc., in addition to each company’s “whistle-blowing hotline”.
Furthermore, the whistle-blowing hotlines have been expanded to include suppliers in Japan, China, and ASEAN, and are being gradually rolled out to stakeholders in North America. These whistle-blowing hotlines can be contacted and consulted anonymously. In addition, the whistleblowers do not suffer any negative repercussions for having contacted or consulted the hotlines. Each report made is examined fairly, equitably and with integrity to determine the need for an investigation.
The content of a hotline report in each case is kept confidential and investigated in detail. In the event of a compliance issue, the main department for the hotline system works in cooperation with the relevant departments to correct the problem and prevent any recurrence. The Chief Compliance Officer reports information on the records of the whistle-blowing systems to the Audit Committee regularly.
In fiscal 2022, there were 11 reports to the whistle-blowing hotlines in Japan and 38 reports to the overseas hotlines. 7 of these reports in Japan and 17 of these overseas were regarding human rights issues.
There were no significant incidents reported from these hotlines that warrant disclosure in fiscal 2022.
