CSR Management

Compliance Implementation

We are focusing our efforts on education activities aimed at compliance in foreign countries.

In addition to our domestic activities, we've begun education initiatives focused on compliance in foreign countries in order to become a proper business in Asia.

Based on the lessons learned from unfortunate events (*) that have occurred since 2008, KOKUYO Group's Compliance Initiatives are grounded in the intent and assumption that all employees of KOKUYO group act in compliance with laws and regulations so that KOKUYO may be considered as an upstanding and honest corporate citizen. Since 2009 we have conducted discussion-type compliance training (CPD), and starting this fiscal year, we will sequentially expand these training initiatives into our overseas locations, starting with China.

* Related Information(described in Japanese):
Apology for Unfair Practices of Employees in Our Consolidated Subsidiary (July 2008)
Regarding unfair acquisition of quality benchmark evaluations related to free access floor material, and product verification results” (November 2011)

Continuation of Discussion-Type Training

We have implemented domestic CPD annually since 2009. Using mock cases created on the base of actual workplace experience, participants are asked to answer a series of questions triggering problem awareness that they can share with other participants. By investigating the causes of scandals and considering possible points of improvement, the purpose of these events is to increase sensitivity and awareness to prevent the risk of scandals in the future.
In the post-event questionnaire, 100% of participants responded that the training was “meaningful”. One respondent wrote, “By speaking my own mind about these things, as well as being able to hear the experience and opinions of members of other groups, I was able to come to new realizations. Some aspects of this training will be helpful to my own work in the future, while other aspects helped me come to new realizations.”
Since our fiscal year 2009 approximately 1600 employees have participated in these events, including about 480 in fiscal year 2011 alone.

Regular Legal and Intellectual Property Training

In addition to CPD, awareness training to acquire knowledge of intellectual property and legal affairs has been carried out on a regular basis under the auspices of our Legal Affairs Department.
By taking up issues relevant to each of our constituent companies, these training events are devised to raise the level of awareness and understanding of relevant legislation.
In our fiscal year 2011, KOKUYO S&T and KAUNET conducted training around the following themes.

  Theme
KOKUYO S&T
  • 1. Study group regarding contracts
  • 2. Legal and Intellectual Property Considerations for Developing Products with Partner Companies
KAUNET Legal and Intellectual Property Considerations for Developing Products with Partner Companies
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Training in session

In fiscal year 2012, KOKUYO S&T, KAUNET, and KOKUYO Furniture will continue conducting training in themes appropriate to each company such as “foreign trade training” and “intellectual property and legal training”.

Compliance Training in China

From this year onward, we will be particularly focusing on compliance training for our overseas employees.
In order to give all employees a real sense of the damage that lack of compliance awareness can cause to our company, we describe concrete past examples of such events, and have also introduced the “KOKUYO Hotline” internal reporting system.
This training has been carried out in China already this year, and we plan to conduct similar awareness training sessions in Vietnam and India in the future.

Development of the KOKUYO Hotline and New Code of Conduct

Up until recently, the “KOKUYO Group Code of Ethics” was used as a rule that employees should respect. Due to recent globalization trends , we have updated and appended the contents so that it may also be applied to employees overseas, and are currently creating a “Code of Conduct” that will be compatible with the local conditions of each country.
To ensure that every employee in the KOKUYO group fully understands these guidelines, we plan to implement a written pledge that must be understood and signed by each employee.
Up until now, the Hotline was limited only to domestic employees, but we are redeveloping it so that overseas employees may also consult from abroad.

In order to become a true business presence in Asia and to sustain corporate activities, we are diligently working both domestically and overseas to ensure that all managerial staff and employees of the KOKUYO Group perform nothing but honest business practices and upstanding conduct.

Thoughts from a Discussion Training Promoter

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Hiroshi Nakano,
KAUNET Co., Ltd.
Director

This time, KAUNET's CPD themes were not based on hypothetical situations, but on 4 real-world past situations that held the possibility of causing scandal for our company.
We thoroughly discussed and shared opinions about the causes of the problems in each group, how to respond to such problems, and measures that may be put in place to prevent recurrences. By sharing and reaffirming past incidents with all company employees, a checklist is created in each individual's mind, moving their awareness beyond the surface of daily business routine, and creating habits of checking even minor interactions with suppliers and other employees. It's clear that this new awareness will make it harder for the seeds of misconduct to take root.

Thoughts from a Discussion Training Participant

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Takaaki Oe,
KOKUYO Furniture Co., Ltd.
Strategy Division

Personally, since finishing the CPD training I've become able to shift from “deep consideration” about emerging problems to immediate action. Specifically, the act of gathering many opinions in the initial stage of problem solving, and using those opinions to plot out a goal is something I'm always keeping in mind. Also I've become able to quickly determine when I've reached my individual limit, and therefore can move to involve others in a project sooner than before. I'm sure there are others around me who have this same awareness, and I feel that, as a result of this CPD, people share more information and experience within a single department and that the speed of problem solving has increased. Since finishing the CPD in December 2011, we began conducting round-table discussions, including all members of the Development Department. This has enabled us to speak frankly about discontent, uneasiness, and questions that would otherwise go unnoticed, and arrange systems designed to resolve them. From now on we will continue proactively utilizing these round-table discussions to share ideas to turn minuses into plusses. I believe this will ultimately lead to the development of superior products.

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