Management
Corporate Governance
Basic Views on Corporate Governance and Guideline on Corporate Governance
Basic Views on Corporate Governance
Based on the “Furukawa Electric Group Corporate Philosophy”, Furukawa Electric Co., Ltd. and the Furukawa
Electric Group secure the transparency and fairness and strive to enhance its performance by promptly responding tochanges in the business environment and the market through efficient management based on prompt decision making.
At the same time, we ensure sound management by developing and establishing an internal control system andapplying it effectively. We uphold the basic policy of seeking to expand and develop our operations on a sustainablebasis and to raise corporate value through these efforts. In accordance with the following views, we seek to strengthen
and enhance our corporate governance.

i. We secure the rights and equal treatment of shareholders.
ii.	We consider interests of stakeholders including shareholders, and cooperate appropriately with them.
iii. We ensure appropriate information disclosure and transparency.
iv.	Given its fiduciary responsibility and accountability to shareholders, the board regards the rolesof independent directors important and carries out effective oversight of operation from objective
standpoint.
v.	We engage in constructive dialogue with shareholders who have investment policies in accordance withinterests of mid- to long-term shareholders.

Guideline on Corporate Governance
Based on "Basic Views on Corporate Governance",
we adopted "Guidelines on Corporate Governance" asa policy for enhancing our corporate governance.

Overview of Corporate Governance System
We adopt the "Audit and Supervisory Board" type ofgovernance organization under the JapaneseCompanies Act taking account of the importance of
maintaining the independence of the statutory audit
function. And we have a "Nominating/Compensation
Committee", majority members of which are outside
directors to complement oversight function of the board.

20

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Management ●●●Corporate governance organization chart
Shareholders’ Meeting

Monitoring and Supervising

Appoints

Audits account

Board of Directors

Submits
proposals
andreports

Nominating /Compensation
Committee

CSR and Risk
Management Committee

Accounting
Auditors

Submits reports

12 Directors(5 outside directors including 3 independent directors)

Consults andCommits

Appoints

Appoints

Audit & Supervisory
Board

Submits reports,
attends meetings
and audits

6 Audit & Supervisory Collaboration
Board Members
between audits(3 members are outside
and independent)

・Screens reports
relating toaccounting
・Examines
status ofoperations andassets・Screens reports relating
to business・Examines status ofoperations and assets

・Decision of critical matter
relating to business operation
・Supervises business operation

Monitors

Business Operation

Appoints

Chairman, PresidentInternal Audits(Auditing
Department)

Submits reports

Corporate Divisions
Direction

Management
Committee

・Global Group Management Division ・Finance & Procurement Division
・Strategy Division
・Research & Development Division
・Administration & CSR Division ・Production Technology Division

Provides support and guidance

Operations
Communications
Solutions Div.
・Optical Fiber & Cable
Products Div.
・FITEL Products Div.
・Broadband Business Div.
Electronics Component
Material Div.
・Electric Conductor Div.
・Magnet Wire Div.
・Copper & High Performance
Material Products Div.
・Copper Tube Div.

Energy Infrastructure Div.
・Power Cable Div.
・Industrial Cable & Power
Cable Accessories Div.

Global Marketing
Sales Div.

Automotive Products Div.
Functional Component Business・Thermal Management Solution &Products Div.
・Copper Foil Div.
・AT & Functional Plastics Div.
・Memory Disk Div.

Subsidiaries andaffiliated companies

As of June 27, 2016

Oversight and Supervisingboard oversights and determines the matters listed● Board of Directors

below:

Given its fiduciary responsibility and accountability toshareholders, the board is responsible for promoting

1.

Determination of corporate governance-related matters;

2.	Establishment and amendment of businesssustainable corporate growth and the increase of

strategies and oversight of execution of suchcorporate value over the mid- to long-term andstrategies and plans by management;enhancing earnings capability and capital efficiency. The

3.	Setting capital allocation policy;

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201621

●●● Management

4.

	Appointment and dismissal of executives
including representative director and corporate5.

policy, plan and result of auditing to the board regularly.
Full-time auditors attend the meetings such as

vice president, and determination of theManagement Committee which decides major business

remuneration of them (including delegating thesematters, and they report information obtained fromto Nominating/Compensation Committee);these audit activities to the non-Full-time and outside

Establishment	of an internal control system

auditors.

relating to compliance and financial reporting and

We strengthen our audit function by appointing an

risk management systems, and oversight of them;assistant staff to the auditors who is dependent of6.

Decision on important business matters;

management.

7.

prescribed by the applicable laws andOthers	regulations etc.
At present, the board consists of 12 directors with 5

At present, the Audit & Supervisory Board consists of
6 members (3 members are outside and independent).

Business Operation

outside directors including 3 independent directors in

President is responsible for management of our wholeorder to enhance transparency in decision-making andbusiness operation as a chief executive under thestrengthen its oversight functions over the management

board’s oversight.

taking outside directors' advice and opinion.

Our business consists of 14 business divisions, andOutside directors have rich management experiences

General Managers of each division are responsible forin f ina ncial ins titu tions, tr a ding comp anies orleading each business operation including subsidiaries

manufacturing companies, and expertise in the field of

and affiliated companies management.

legal or industrial governmental policy etc., in addition to

We also appoint General Managers of

the knowledge of our business area. The board respects

Communications Solutions Division, Energy

their views and opinions based on their variety of

Infrastructure Division and Electronics Component

experiences in making its decision.

Material Division in order to supervise closely related
business divisions. Furthermore, we appoint Advisors ofFunctional Components Business in order to assist● Nominating/Compensation Committee
We established the Nominating/Compensation
Committee, replacing the former Compensation
Committee in May 2015.
The committee's aim is to enhance our corporate

President’s supervising function over each business
operations and to plan integrated business strategy foreach business sector.
In addition, we appoint General Manager of Global
Marketing Sales Division that are responsible for ourgovernance securing the objectivity and transparency asgroup’s sales and marketing entirely, and General

to nominating and compensation for directors etc. The

Managers of Corporate Divisions that are responsible forcommittee consists of 5 or more members, majority ofplanning group strategy and assisting operation.

which shall be outside directors, appointed fromdirectors by board resolution.
At present, the committee consists of 6 members (4outside directors).

These officers are members of the Management
Committee, which is the highest decision-making bodyof business operation.
Management Committee, held 3 times a monthbasically, deliberates and determines major operational● Audit & Supervisory Board
Audit & Supervisory Board and each its member

quarterly reported to the Committee to foster common

auditor collect information about management under

understanding of company business among them andstatutory investigation authority and report and express

integrated business operation as a whole.

their views to the board meetings and the managementfrom an independent and objective standpoint as afiduciary to shareholders.
Auditors ensure coordination with internal audit
department through regular meetings, and report the22matters. Further, their business affairs and operation are

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

These business affairs and operation are also quarterly
reported to the board.

Management ●●●Process of Determining Officers’ Remuneration	and Avoiding Conflict of Interestsof compliance violations, and establish a system not totreat the person unfavorably because of reporting.

At Furukawa Electric, the policy on officers’
remuneration and details of each officer's remuneration

3) Risk Management System

are determined by the Nominating/Compensation

We have established our risk management system

Committee consisted the majority of the committee

and management method in the “Basic Regulations oncomprising outside directors, based on the delegation

Risk Management and Internal Control”. In addition, wefrom the Board of Directors in order to ensure objectivity

have established a system in which the CSR and Risk

and transparency of the decision-making process.

Management Committee, chaired by the President,

In addition, in the case where Directors conduct

grasps an overall picture of the risks associated with thetransactions involving a conflict of interests, they mustbusiness operations of Furukawa Electric Group andbe based on approval at the Board of Directors’ meeting

determines effective methods for evaluating andas required by law.

managing these risks.

Remuneration policy of Company’s officers
The remuneration of officers shall be determined ina way that encourages each officer to exert his/herabilities to the maximum level and proactively fulfill
his/her duties, so that the Company Group will
increase its corporate value and achievesustainable growth while contributing to society
through its business activities.

4) Information Management System
We appropriately manage and store records anddocuments related to important decisions, in compliancewith prevailing laws and internal rules. With respect to otherinformation related to our operations, the Information
Security Committee establishes uniform standards andoperates an information management system.
5) Group Company Management
In accordance with the “Regulations on Group	Reinforcing Internal Controls
Furukawa Electric establishes, develops and operates
its internal controls based on the following principles:Management Control”, administrative managers of individual
subsidiaries shall be appointed, and they shall require own
subsidiaries reporting subsidiaries’ business conditions ona regular basis, and offer management guidance tosubsidiaries. Predetermined matters shall require approval

1) Efficient Execution of Responsibilities
After setting concrete management goals for the
Medium-Term Management Plan and over the course ofof us. We also carry out a mid-term management planand budgets for single fiscal years, risk management, andcompliance as Furukawa Electric Group.

the fiscal year, all those responsible for operational
performance execute their responsibilities towardachieving these goals and regularly report their progressto the Board of Directors.

6) Securing Appropriateness of Financial Reporting
Based on the “Basic Regulations on Risk
Management and Internal Control”, we will establish the“Furukawa Electric Group Basic Philosophy for the2) Compliance Systemdevelopment and evaluation of an internal control

Upholding the basic philosophy of compliance withsystem, to ensure the appropriateness of financial

ethics and prevailing laws as laid out in the “Furukawa

reporting (J-SOX Core Policies)”. At the same time, theElectric Group Philosophy” and the “Furukawa Electric

system and responsibilities shall be clarified for theGroup CSR Code of Conduct”, we, with the President

system’s construction, development, operation, andassuming the highest responsibility, promote compliancemonitoring.

activities including in-house education and efforts toprevent and detect legal violations through our CSR and
Risk Management Committee, which is under theimmediate control of the Board of Directors, and the

Corporate governancehttp://www.furukawa.co.jp/en/company/
governance.html

Administration & CSR Division. We also have an Internal
Reporting System for the early detection and correction
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201623

●●● Management

CSR Management
Group Philosophy
Since our founding in 1884, we have worked to create the technologies andproducts that society requires. We consider it our mission to contribute to therealization of a sustainable society. We will continue to keep our eyes on the future as
we work to live up to the expectations and trust invested in us by society.

CORPORATEPHILOSOPHY

Drawing on more than a century of expertise in the development andfabrication of advanced materials, we will contribute to the realizationof a sustainable society through continuous technological innovation.

MANAGEMENTPHILOSOPHY

With an eye to the future, the Furukawa Electric Group management team pledges to:- Live up to the expectations and trust invested in us by society, with fairness and integrity.
- Apply the sum total of our expertise to satisfy our customers and grow with them.
- Continuously strive to achieve world-class technological innovation, and transform
ourselves in every area of endeavor.
- Nurture human resources at every level, so that we can become a more diverse andcreative organization.

CREDO

1. Maintain high ethical standards, and value honesty and integrity above all.
2. Continually improve, innovate, and lead, in every area of endeavor.
3.	Take a hands-on approach that addresses the reality of every situation - in theoffice, at the factory, and on site.
4.	Be proactive - take the initiative and work with others, persevering until a solution
is found.
5.	Maintain open channels of communication between departments and divisions, sothat we can share ideals and help each other grow.

Basic Policy and CSR Code of Conduct
Each of the companies in Furukawa Electric Group develops CSR activities in line withthe following Group basic policy.

Furukawa Electric Group Basic Policy on CSR（Revised March, 2011）
Based on the Furukawa Electric Group Corporate Philosophy,
・We will operate our businesses in harmony with society and the environment and endeavor tocreate social value through technological innovation, complying with laws, social norms, andethics as a member of the international community.
・We will strive to maintain and build sound and friendly relationships with all of our stakeholders
and contribute to the sustainable development of society.

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FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Management ●●●The CSR Code of Conduct defines fundamental rules

The Furukawa Electric Group CSR Code of Conductof behavior for Furukawa Electric Group executives and（Revised March, 2011）

employees to follow in conducting corporate activities

1. Human rights
2. Working conditions and environment
3. Environment
4. Products and services
5. International businesses and transactions
6. Fair competition
7. Relations with customers, partners, and society
8. Management and preservation of Company assets
9. Disclosure of information
10.	Duties and obligations of senior management
and employees

based on the Group philosophy and from theperspective of corporate social responsibility.

(Japanese)(English)(Chinese)

CSR

CSR Compliance Handbook

http://www.furukawa.co.jp/en/csr/guideline/

Basic Approach

CSR Promotion Framework

In order to contribute to the realization of a truly rich

Furukawa Electric Group has established the CSR

and sustainable society, we need to understand theand Risk Management Committee, which comprisessocial responsibilities of Furukawa Electric Group andmembers of management, as the structure for

implement policies in line with the Basic CSR Policy. We

supervising and promoting CSR activities throughout thewill promote CSR initiatives alongside our businessGroup, including risk management, internal control,

activities so that each and every Group employee is able

compliance and social contribution. We have set up theto take the lead in putting CSR initiatives into practice.

CSR Department within our Administration & CSR
Division. This department promotes CSR by facilitating
communication among various committees andcorporate departments.

Promotion
Framework

Board of Directors
Submit proposals and reports

President

CSR and Risk Management Committee
Committee chair: President
Committee members: Management
Organizer: General Manager, CSR Department
Furukawa Electric Group
Quality Management Committee

Collaborate

Furukawa Electric Group
Environment Committee
Central Disaster Prevention
and Business Continuity
Management Promotion Committee

Other corporate
divisions

Administration &CSR Division

Furukawa Electric Group Occupational
Health and Safety Committee

CSR Department

Monitoring

Collaborate

Each corporate
department

Promotion / Support

other

Business divisions (internal + Group companies)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201625

●●● Management

Stakeholder Relations
Environment

F u r u k a w a E l e c t r i c G ro u p p ro p e r l y

Customers

monitors our business practices andendeavors to establish structures for
improving them even more, so as to steadily

Localcommunities

Furukawa
ElectricGroup

meet our responsibilities to our various
stakeholders, who view us from differing
perspectives.

Employees

Main Stakeholders

Main Responsibilities

Environment-R educe emission of gases that contribute to global
warming- Promoteenergy conservation and recycling rotect biodiversity-P urtail industrial waste-C- Manageand reduce harmful chemical substances

Customers

Suppliers

Suppliers

Shareholders

Means of Communication

 ompliance with laws and regulations-C- Compliancewith the Kyoto Protocol and the
Nagoya Protocol on biodiversity-R esponse to environmental activities of the
Ministry of the Environment and other governmentorgans esearch and information exchange on-Rbiodiversity preservation through JBIB (note 1)-M aintain and improve the quality of products,
operations and services
 ffer products and services that are useful to-Osociety ialogue through regular business-D rovide solutions to issues confronting customers-Pthrough a broad array of technologies and knowhow-D ialogue at technology exhibitions, trade shows-E stablish a sound relationship founded on fairtrading in compliance with laws and regulations-P artner Meetings

 ealize CSR throughout the supply chain by-R
implementing CSR Deployment Guideline for
Business Partners-C SR surveys

 ebsite, Sustainability Reports-W-D ialogue through regular business- Feedback
interviews on results of partnerevaluations
 ustainability Reports-S

Shareholders-P rovide appropriate returns-E nsure timely and appropriate disclosure-E nhance corporate value- General
meetings of shareholders, shareholder
reports-M anagement briefings and results presentations- I nvestor visits-S hareholder plant tours

Employees-R espect human rights-C ultivate and appropriately value and reward
human resources romote health, including occupational health and-Psafety, as well as mental health- I nternal newsletter, intranet-M anagement briefings

- Support
diverse workstyles and work/life balance

Localcommunities-F actory tours-N urture future generation-P romote sporting and cultural activities- Cooperatewith and sponsor sports and traditionalevents-L ive in harmony with the natural environment andlocal communities- Support
the activities of and collaborate with localNPOs reserve the Satoyama Environment-P(note 1) JBIB:Japan Business Initiative for Biodiversity. Founded in 2008, the JBIB is a joint effort by Japanese companies to act on behalf of biodiversity preservation.

26

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Management ●●●Targets and Results (Risk Management / Internal Controls / Compliance)
FY2015
Targets

Develop a system for the
globalization of legal andcompliance functions
 eview and implement-Rcompliance education in China
and Southeast Asia

Reconstruct business
continuity management (BCM)-S upport the construction of abusiness environment-based
practical structure

Support the improved
effectiveness of internal control
in overseas affiliates- I mplement J-SOX re-educationand help to set up effective
internal control in Southeast
Asia

Achieved

Partially achieved

Not achieved

FY2016
Results / Achievement

 onducted compliance education for-Cgroup companies in China (Shanghai) onducted risk surveys of group-C
companies in China (Tianjin)-S upporting construction of BCM
mechanisms for Japanese groupcompanies

Targets

Develop a system for the
globalization of legal andcompliance functions
 xamination and implementation-Eof compliance education in China
and Southeast Asia
Expansion of the introductionof internal reporting systems tooverseas group companies
 ajor expansion in the scope-Mof companies where an internalreporting system has been
introduced, to include regions
such as China and Southeast Asia
Strengthening the developmentof cyber security measures onducted education of group companies-Cin Malaysia
 upporting the introduction of IT controls-S
for group companies in Indonesia

Message fromthe General
Managers

Message fromthe General
Managers
Yasuhiro Yonezawa-D evelopment of measures inaccordance with the Ministry of
Economy, Trade and Industry’s“Cybersecurity Management
Guidelines”

Nowadays, companies are required to respond to a rapidlychanging world with a variety of stakeholders in mind. As
Furukawa Electric Group sets about this task, CSR activities arean essential part of our survival as a business. Furukawa
Electric Group has set out a basic policy and code of conduct
for CSR in accordance with a group philosophy that seeks tomeet the expectations of our founder, in addition to developinga variety of related systems and mechanisms. In addition toconfirming the effective functioning of measures in theworkplace, we will continue to support improvements in thehandling of operational challenges.

General Manager, CSR Department,
Administration & CSR Division

Message fromthe General
Managers

責任者の

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201627

●●● Management

Risk Management
Overview of the Risk Management Structure
Our CSR and Risk Management Committee conducts regular risk assessments to determine what risks exist, define
important risks that require a companywide response and prioritize measures to counter these risks. Throughspecialized committee activities in segment-specific areas—environment, quality, safety, disaster prevention—we areworking to manage the risks that relate to our business activities.
In the event a large-scale disaster occurs or other such risk
Important Companywide Risks

materializes, the Group will establish Emergency Response• Compliance

Headquarters, headed by the president, and Site Response• Quality control

Headquarters that defines each department's roles and clarifies

 arge-scale disasters, such as earthquakes•L• Information security• Affiliated company controls

them ahead of time. We also conduct regular exercises on
preparing initial action manuals, stockpiling necessary supplies,
and setting up communication structures and systems toconfirm people's safety.

BCM (Business Continuity Management)[Business continuity ISO]

Emergency headquarters training

In fiscal 2015 the Electric Conductor Division received
BCMS ISO standard (ISO22301) certification in the“manufacture of copper wire products”. Copper wire is amaterial product used in Furukawa Electric Group’s leading
products, such as electric wires and cables, and a steadysupply of copper wire is always needed. ISO22301
certification was achieved thanks to the desire of the
manufacturing workplace to build a BCM system ahead of

Organizing the results of the investigation

the other divisions, based on its sense of responsibility as

the expected roles of

the highest upstream process both at the company andeach participant in theelsewhere.

event of a disaster. The
President said “In a realdisaster, you need totackle each and every
task under extreme
pressure. I want you tomake full use of theexperience we gained

Accreditation for business continuity ISO (ISO22301)

President’s message

from the Nikko Works snow damage and use this type oftraining to make thorough mental preparations for any[Emergency headquarters training]

future disasters.”

As part of emergency headquarters training for fiscal

28

2015, we considered the scenario of a large earthquake[Disaster headquarters training at the Head Office]hitting Furukawa Electric’s Nikko Works. We shared views

As part of disaster headquarters training at the Headon what support the affected works would expect from

Office, we carried out training in which the employees

the headquarters and what support could be given by theactually walked home along the routes on the maps.

headquarters to the affected works. We also confirmed

Training was carried out on the assumption of a real

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Management ●●●emergency, and the participants carried two liters of

the real purpose of the e-mail. Some people opened thewater and three meals. They walked for approximately

attachments without checking, and this reconfirmed thetwo hours, checking for potential evacuation shelters andrisks of e-mail fraud. Moving forward, we make efforts tohigh risk locations on the route. As well as confirming justraise awareness of increasing cyber risks, including new

how difficult it would be if they actually had to walk home,

tricks, and to strengthen the security of our IT

the participants learned the importance of leaving a large

environment.

bag or daypack in the office, and the need for sneakers
or similar comfortable walking shoes, but not leather
shoes. It was an extremely valuable experience.

Protection of Intellectual Property
Furukawa Electric conducts strategic and efficient
intellectual activities in line with our business andInformation Security

development strategies. As well as strategicallyInformation security is considered one of the highest-

developing intellectual property rights based on patentpriority risks the Group has to handle. Therefore we

portfolio management that recognizes trends among rival

promote various countermeasures through intergroupcompanies, we also encourage risk hedging such as

collaboration by exchanging information among thepreventing technical leaks by technology confidentiality

related divisions, from the perspectives of protecting

and protecting our prior user rights. We are also

information systems and intellectual property as well as

extending our intellectual property activities worldwide,

information management. We continue our efforts topromoting intellectual property awareness within thep re v e n t i n f o r m a t i o n l e a k s b y f o c u s i n g o n t h eGroup through education on intellectual property rights

management of hardware (mainly mobile devices) taken

and information on intellectual property risks.

outside the office and to manage IT assets through suchmeasures as software license management. We provide
Furukawa Electric Group with educational materials andChallenges and Future Policy

information on the revisions of information security-

Following our international business development, risks

related laws such as the Act on Prohibition ofthat Furukawa Electric Group faces are becoming more

Unauthorized Computer Access, the Unfair Competition

diversified and complicated each year. We particularly

Prevention Act and the Act on the Protection of Personal

recognize that risks inherent in overseas operations―

Information. In our aim for ongoing improvement, we getmainly in emerging countries―and risks from the supply
chain standpoint are our top priority issues, and we will

feedback from divisions promoting these activities.
The numerous cases of phishing fraud seen in recent

be strengthening our countermeasures against them. For

years are a threat to companies, and in fiscal 2015

example, our Global Group Management Division

Furukawa Electric discovered a fraudulent e-mail using

provides support and information for Group companies

the accounting department name. In view of this situation,

including creating the Furukawa Electric Group Business

we carried out e-mail fraud simulation training for group

Management Handbook for them in order to reinforce

companies, both in Japan and overseas. The participants

global risk management.

were sent fake e-mails and if they carelessly opened theattachments they were sent warnings and informed about

Disaster headquarters training at
the Head Office

On the route home
Briefing before departure

At the halfway point
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201629

●●● Management

ComplianceElectric Group employees and take many opportunities to

Basic Approachmake use of it. We conduct compliance education for

Furukawa Electric Group regards compliance as “notemployees at every level of the Company, from new

only observing laws and regulations, but also as acting in

recruits to directors. At the same time, we hold theme-

accordance with the values and ethics required of thebased group training and e-learning courses, and conductcompany and its employees as responsible members ofgroupwide compliance education.

society”. Each and every employee is encouraged toperform day-to-day compliance activities in line with our

Education Results (fiscal 2015)

three musts for compliance activities: to “be aware”,

Course Name

“speak” and “rectify”.

Three Musts for Compliance Activities

Speak

Hierarchybased
education(note 1)

Be aware
Rectify
1) Be aware
・Is this in line with the philosophy and CSR
Code of Conduct?
・Is this an improper practice?

Themespecificeducation

TargetParticipants

Training forexecutives

Newly appointed
executives

23

Training for
managers

Newly appointed
managers

42

Training for
managers
and assistantmanagers

Newly appointed
managers
and assistantmanagers

43

Training for new
employees

New employees

36 (note 2)Competition laws and anti-bribery
regulations

261

Subcontractor Law

505

Security trade control

594(note 1) In hierarchy-based education, manager training and new employee training
includes education on human rights.
(note 2) Figures apply to Furukawa Electric only.

・Does this run counter to society's
requirements and expectations?
2) Speak・Do not neglect it.
・Talk about it openly.
・If still not sure, take it to your boss.

Initiatives in Compliance Months
Furukawa Electric Group has designated October andNovember as Compliance Months, during which we3) Rectify

implement measures aimed at tackling the variety of・As soon as you become aware of it, fix it.

compliance issues faced by companies across our Group.

・Always improve.

Principal Initiatives during Fiscal 2015 Compliance Months
Main Initiatives at Furukawa Electric
1C
 onduct workplace self-checks according toTraining and Raising Awareness among Employees
We conduct a host of training and awareness activities

section-specific checklist<Section-Specific Checklist>
1) Anti- Monopoly Act, 2) Worker Dispatching Act

in the aim of instilling compliance awareness among all3) Subcontracting transactions, 4) Occupational safety

employees.

5) Asset protection, 6) Information security
2 Conduct workplace meetings

Compliance Education
Our primary shared educational materials are the
Furukawa Electric Group CSR Code of Conduct and its
corresponding Furukawa Electric Group CSR ComplianceHandbook. We distribute this handbook to Furukawa

30

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

3 Courses on competition laws and anti-bribery regulations4S
 ubmission of Compliance Pledge (for assistantmanagers, managers and above)

Management ●●●Employee Compliance Awareness Surveys

Anti-Bribery

We ha ve biannually continued to implement

Furukawa Electric Group formulated the Furukawa

compliance awareness surveys at Furukawa ElectricElectric Group Anti-Bribery Statement in April 2012. In

and affiliates in Japan. Designed to gauge employee

December, we published the Furukawa Electric Groupawareness and understanding of compliance, theseAnti-Bribery Guide, and we are promoting activities towardsurveys aim to encourage recognition of compliance.

creating a groupwide bribery risk management system.

Feedback is given on the results of the survey to ourGroup companies and Furukawa Electric divisions, andthe results are used to make proposals for compliancemeasures at each organization. In fiscal 2014, we madeimprovements such as adding questions related topersonnel measures and conducted the survey as an“employee survey”. In fiscal 2016, we will conduct
compliance awareness survey.

China compliance seminar
In fiscal 2014, we conducted group-type complianceseminar taking account of local laws and customs. In
fiscal 2015, we held a seminar on competition law andanti-bribery regulation at Shanghai in March, 2016.
About 30 staff, mainly Chinese, attended lectures by alawyer in Chinese and Japanese and took part indiscussions on compliance.

Internal Reporting System
Furukawa Electric Group has introduced an internalreporting system to earlier detect and correct illegal
acts. The Company has in place an internal reporting

Challenges and Future Policy

desk as well as an external reporting desk that makes

Regarding the various legal compliance measures we

use of outside third-party institutions (the Furukawa

have taken to date, we recognize as a Group that ourElectric Group Hotline), both of which allow employees

task is to expand the scope of participation of Groupto make reports anonymously. An internal reporting

companies. To this end, we will try to raise compliancesecretariat manages the content of such reports

awareness by focusing on more effective education

stringently, taking ample care to prevent people making

content with a Group perspective and enhancing its

such reports from suffering any negative impacts,

global implementation system. We will also hold more

looking into issues swiftly and taking appropriate action.

compliance seminars taking account of local laws,
languages and customs, encouraging individual initiative

Security Trade Control

under the slogan “Think and conduct compliance
together”.

Furukawa Electric Group considers security trade control
to be one of its most important responsibilities as acompany with global business operations. In accordancewith the laws and regulations that make up the internationalframework on security trade control (the export control
regime), we have improved and strengthened ourmanagement systems for cargoes and technologies thatcan be converted to weapons or military uses. In exporting
products and providing technology, we conducttransaction screenings based on our Security Trade
Control Regulations to ensure compliance with relevant
legislation and are careful to prevent circumvent tocountries of concern.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201631