Corporate Activities

Risk Management

Basic Concepts

The KOKUYO Group took the opportunity of the integration in 2015 to establish an organization and start taking steps to promote risk management.

The aim of this activity is to establish a risk management circle from the Group's point of view. First, we started with recognizing what kind of risk exists in the entire KOKUYO Group, and considered policy of prioritization and measures from a perspective of what is best for the Group as a whole, and then promoted it.

We will clarify the particularly important themes or themes related to the entire organization, and aim to improve the effectiveness and efficiency of risk management by advancing the activity across the entire Group.

Related information: " Risk Factors "

KOKUYO's Basic Policy of Intellectual Property Rights

As one of the strategies to differentiate ourselves from competitors, the KOKUYO Group promotes the following initiatives to encourage the acquisition of intellectual property rights, and at the same time, to respect intellectual property rights of others:

1) Management and Operational Structure of Intellectual Property Rights

The KOKUYO Group aims to standardize and centralize utilization and strategies for intellectual property rights by controlling operations related to the intellectual property rights of subsidiaries and affiliated companies in Japan and overseas centrally within the intellectual property rights group of the legal department.

The group monitors the products of our competitors on a daily basis for the acquisition of rights in inventions, design, and trademarks; as well as executing thorough preliminary surveys to prevent a violation of the intellectual property rights of others; and protecting our intellectual property rights. In addition, in cases where there is a conflict with competitors, the group corresponds to such a situation through cooperation with the management by taking a rapid and optimal approach for resolution.

2) Protection and Legal Compliance of Intellectual Property Rights

The KOKUYO Group Code of Conduct stipulates that we respect the intellectual property rights of others while the intellectual property group establishes and operates the system for research, analysis, and close investigation to prevent and avoid the violation of rights held by others.

3) Promotion of Creation and Utilization of Intellectual Property Rights

The intellectual property group and development division work closely from the early stage of development to increase the superiority of the products in the market and focus on creating and discovering inventions that contribute to differentiation from competitors' products. We also aim to adhere to Sec. 33 of the Patents Act and establish an incentive system for employee invention as an internal rule, in the aim of increasing customer satisfaction and encourage inventions that strengthen the Group's development.

Information Security Measures

KOKUYO establishes our information security management system based on our Information Security Basic Policy.

KOKUYO possesses confidential business information as well as customer information and personal information obtained in the course of business. We take such information as important information assets, and in addition to strengthening the management concerning the handling of this information, we take measures against system failures and leaks of information outside the company due to virus infections of information systems and cyber attacks.

Information Security Basic Policy

(1) Appropriate safety measures are taken in order to prevent unauthorized access to information assets, as well as loss, falsification and leakage, etc. of information assets.

(2) Laws and ordinances regarding information security and other standards are adhered to.

(3) Personal information is managed according to the Personal Information Protection Policy defined by the KOKUYO Group.

(4) Users of departmental information assets are educated on the importance of information security to ensure thorough awareness regarding this basic policy.

(5) Information security management systems are established in departments, and these systems shall be improved on a continuous basis.

Formulation and Implementation of Business Continuity Planning (BCP*)

Business Continuity Planning (BCP) defines action plans to continue business operations to the best of our ability after the occurrence of unforeseen circumstances, such as disasters and accidents, as well as action plans to recover and resume business in as little time as possible where interruption is unavoidable.

In order to product supply with greater stability even in critical times such as disaster or outbreak of infectious disease, KOKUYO Group is thorough in its Group-uniting crisis management and will continue to promote continuous business management.

*BCP (Business Continuity Planning)

Conduct of Training for Business Continuity Planning Related to Stationery Business

In July and November 2018, business continuity planning training was conducted for group companies involved in the stationery business.

Within the stationery business, teams are formed based on function rather than by department or company in order for relevant organizations to collaborate and consolidate the necessary information so as to be able to assess the possibility of business continuity during times of emergencies. At the first training in July, tabletop exercises were conducted to identify issues. At the second training, video conferencing apps were used during the training based on a scenario assuming being unable to commute to offices during times of emergencies.

KOKUYO will continue to make improvements so as to achieve BCP that actually functions during times of emergencies.

Early Response Measures during Disasters

Survival cards (left) and emergency action plans for employees (right)

Survival cards (left) and emergency action plans for employees (right)

To ensure that all employees can restore calm behavior in the event of large-scale disaster, we distributed survival cards that list procedures to be followed during times of disaster and ask that all employees carry the cards with them at all times.

The survival card provides three rules to follow during disasters - (1) to ensure one's personal safety, (2) to remain calm, and (3) to report one's own condition - as well as information about how to browse disaster message boards offered by cell phone companies and an information section for identification in case of unexpected circumstances.

In addition, the emergency action plans for employees that provide a full detail of the survival card are posted on the intranet to raise awareness of measures for disasters.

Creation of a Safety Confirmation System and Implementation of Practice

To quickly confirm the safety of Group employees in times of disasters, in 2006, we set up a safety confirmation system using cell phones, PCs, fixed line telephones and other means of employee communication. Immediately after the earthquake in March 2011, it was temporarily impossible to use telephones and e-mail. At present, however, there is no other alternative systems available to confirm the safety of a large number of employees at the same time. For the time being, we will continue to require all employees to register their cell phones and other contact addresses, and make sure that all employees receive notification and that contact information is kept up to date and in a usable state.

Implementation of Emergency Drills at Business Locations

An emergency drill held at the Osaka Headquarters

An emergency drill held at the Osaka Headquarters

To ensure that all employees take safety precautions on their own in an emergency, along with regular countermeasures for earthquakes, we are conducting periodic training and drills simulating a large-scale earthquake on weekdays.

The Osaka Headquarters and the Shinagawa Office holds an evacuation drill simulating the situation after receiving an early earthquake warning. Actions for maintaining safety by taking cover under desks were implemented. Based on the scenario of an office fire following an earthquake, full emergency training is being offered, beginning with immediate firefighting and simultaneous reporting to the fire department and disaster center, through to evacuation after abandoning firefighting efforts.

The KOKUYO Group will continue to increase Group-wide crisis-response capability in the future.