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 ElectricGroup secure the transparency and fairness and strive to enhance its performance by promptly responding to changes inthe business environment and the market through efficient management based on prompt decision making. At the sametime, we ensure sound management by developing and establishing an internal control system and applying it effectively.
We uphold the basic policy of seeking to expand and develop our operations on a sustainable basis and to raise
corporate value through these efforts. In accordance with the following views, we seek to strengthen and enhance ourcorporate 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 accordancewith interests of mid- to long-term shareholders.

Guideline on Corporate Governance

Overview of Corporate Governance System

Based on "Basic Views on Corporate Governance", we

We adopt the "Audit and Supervisory Board" type of

adopted "Guidelines on Corporate Governance" as agovernance organization under the Japanese Companies

policy for enhancing our corporate governance.

Act taking account of the importance of maintaining theindependence of the statutory audit function. And wehave a "Nominating/Compensation Committee", majority
members of which are outside directors to complement
oversight function of the board.

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FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

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 Div.
・Strategy Div.
・Administration & CSR Div.

・Finance & Procurement Div.
・Research & Development Div.
・MONOZUKURI Innovation Div.

Provides support and guidance

Operations
Communications
Solutions Div.
・Optical Fiber & Cable
Products Div.
・FITEL Products Div.
・Broadband Solutions 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 22, 2017

Oversight and Supervising● Board of Directors
Given its fiduciary responsibility and accountability toshareholders, the board is responsible for promoting

board oversights and determines the matters listed
below:
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 201723

4.	Appointment and dismissal of executives including
representative director and corporate vicepolicy, plan and result of auditing to the board regularly.
Full-time auditors attend the meetings such aspresident, and determination of the remuneration

Management Committee which decides major businessof them (including delegating these to Nominating/matters, and they report information obtained from theseCompensation Committee);audit activities to the non-Full-time and outside auditors.

5.	Establishment of an internal control system relating

We strengthen our audit function by appointing an

to compliance and financial reporting and risk

assistant staff to the auditors who is dependent ofmanagement systems, and oversight of them;

management.

6.

Decision on important business matters;

7.	Others prescribed by the applicable laws andAt present, the Audit & Supervisory Board consists of 6
members (3 members are outside and independent).

regulations etc.
At present, the board consists of 12 directors with 5
outside directors including 3 independent directors.
Outside directors have rich management experiencesin financial institutions, trading companies or
manufacturing companies, or expertise in the field of legal

Business Operation
President is responsible for management of our wholebusiness operation as a chief executive under the board’s
oversight.
Our business consists of 14 business divisions, andor industrial governmental policy etc. The board respects

General Managers of each division are responsible for

their views and opinions based on their variety ofleading each business operation including subsidiaries

experiences in making its decision.

and affiliated companies management.

We also evaluate the effectiveness of our meetings ofWe also appoint General Managers of Communications

the Board of Directors on an annual basis, and release

Solutions Division, Energy Infrastructure Division andsummaries of the evaluation results on our company

Electronics Component Material Division in order to

website.

supervise closely related business divisions. Furthermore,
we appoint Advisors of Functional Components Businessin order to assist President’s supervising function over

● Nominating/Compensation Committee
We e s t a b l i s h t h e N o m i n a t i n g / C o m p e n s a t i o n
Committee.
The committee's aim is to enhance our corporateeach business operations and to plan integrated businessstrategy for each business sector.
In addition, we appoint General Manager of Global
Marketing Sales Division that are responsible for ourgovernance securing objectivity and transparency bygroup’s sales and marketing entirely, and Generaldeliberating on nomination and compensation forManagers of Corporate Divisions that are responsible fordirectors, etc., including the selection of candidates forplanning group strategy and assisting operation.

the position of our President and Chief Executive Officer.

These officers are members of the Management

The committee consists of 5 or more members, majority

Committee, which is the highest decision-making body ofof which shall be outside directors, appointed frombusiness operation.

directors by board resolution.
At present, the committee consists of 6 members (4outside directors).

Management Committee, held 3 times a monthbasically, deliberates and determines major operational
matters. Further, their business affairs and operation arequarterly reported to the Committee to foster common
understanding of company business among them and● Audit & Supervisory Board
Audit & Supervisory Board and each its member
auditor collect information about management understatutory investigation authority and report and express
their views to the board meetings and the managementfrom an independent and objective standpoint as afiduciary to shareholders.

24integrated business operation as a whole.
These business affairs and operation are also quarterly
reported to the board.

Process of Determining Officers’ Remuneration
and Avoiding Conflict of Interests
A t F u r u k a w a E l e c t r i c , t h e p o l i c y o n o ff i c e r s ’

Auditors ensure coordination with internal audit

remuneration and details of each officer's remuneration

department through regular meetings, and report theare determined by the Nominating/Compensation

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Management

Committee consisted the majority of the committee

management method in the “Basic Regulations on Risk

comprising outside directors, based on the delegation

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

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 must be

business operations of Furukawa Electric Group andbased on approval at the Board of Directors’ meeting as

determines effective methods for evaluating andrequired by law.

managing these risks.

Remuneration policy of Company’s officers
The remuneration of officers shall be determinedin a way that encourages each officer to exert his/her abilities to the maximum level and proactively
fulfill his/her duties, so that the Company Groupwill 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 on aregular 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 plan andbudgets 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 the development and2) Compliance Systemevaluation of an internal control system, to ensure theUpholding the basic philosophy of compliance withappropriateness of financial reporting (J-SOX Core

ethics and prevailing laws as laid out in the “Furukawa

Policies)”. At the same time, the system andElectric Group Philosophy” and the “Furukawa Electric

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

construction, development, operation, and monitoring.

assuming the highest responsibility, promote complianceactivities 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 theAdministration & CSR Division. We also have an Internal

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

Reporting System for the early detection and correctionof compliance violations, and establish a system not totreat the person unfavorably because of reporting.
3) Risk Management System
We have established our risk management system and
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201725

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 2017

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.
グループ外秘Internal use only for Furukawa Electric Group

CSR・コンプライアンス・
ハンドブック第5版

CSR Compliance Handbook
Guidance on
Furukawa Electric Group Philosophy
andFurukawa Electric Group CSR Code of Conduct
International version(Japanese)

Second edition(English)(Chinese)

CSR
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 andand sustainable society, we need to understand the

Risk Management Committee, which comprisessocial responsibilities of Furukawa Electric Group andmembers of management, as the structure f or

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 201727

Stakeholder Relations
Environment

Customers

Furukawa Electric Group properly monitors
our business practices and endeavors toestablish structures for improving them evenmore, so as to steadily meet our

Localcommunities

Furukawa
ElectricGroup

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 Paris Agreement 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:J apan Business Initiative for Biodiversity. Founded in 2008, the JBIB is a joint effort by Japanese companies to act on behalf of biodiversity preservation.

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FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Management

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

Achieved

FY2016
Targets

Develop a system for the
globalization of legal andcompliance functions
 xamination and implementation-Eof compliance education in
China and Southeast Asia

Partially achieved

Not achieved

FY2017
Results

Achievement

 onducted compliance education-Cfor group company staff in Thailand(Bangkok)Targets

Develop a system for the
globalization of legal andcompliance functions
 xamination and implementation-Eof compliance education inSoutheast Asia etc.

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 SoutheastAsia xpanded the scope of companies in-E
China and Southeast Asian regions where
an internal reporting system has been
introduced, from 7 to 25 companies

Strengthening overseas risk
management-U nderstand and summarize anyrisks which could conceivably
impact business, and also
formulate policies to address
those risks
Expansion of the introductionof internal reporting systems tooverseas group companies

Strengthening the developmentof cyber security measures-D evelopment of measures inaccordance with the Ministry of
Economy, Trade and Industry’s“Cybersecurity Management
Guidelines”

Message from theGeneral Managers-F ormulated guidelines including measures
for initial response to cyber-attacks, andconducted related education (e-learning)for employees- I mprovement of the introduction
rate of internal reporting systems
in companies with consolidated
systems- Implemented risk analysis and otherprocedures related to cyber security risks,
based on guidelines from the Ministry of
Economy, Trade and Industry

Message from theGeneral Managers

Message from theGeneral Managers

CSR activities are important measures which
serve as the foundation for management.
We will provide thorough support so that theirmechanisms can function effectively.
Yasuhiro Yonezawa
General Manager, CSR Department,
Administration & CSR Division
With the management environment undergoing changes
day by day, it is becoming required for corporate activities
today to respond to its various changes while being awareof the relationships that exist with various stakeholders.
We are fully aware that under these circumstances, CSR
activities are extremely important measures that form thefoundation for Furukawa Electric Group to continue its

businesses. Based on our Group Philosophy, we have set
out a Basic Policy, Code of Conduct, and other materials
related to CSR, in addition to developing a variety ofrelated systems and mechanisms. We will continue tosupport improvements in the handling of operational
challenges regarding these mechanisms, so that they may
continue to function effectively in the future.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201729

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. Through specializedcommittee activities in segment-specific areas—environment, quality, safety, disaster prevention—we are working tomanage 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•L arge-scale disasters, such as earthquakes

them ahead of time. We also conduct regular exercises on• Information security

preparing initial action manuals, stockpiling necessary supplies,
and setting up communication structures and systems to confirm• Affiliated company controls

people's safety.

BCM (Business Continuity Management)[Business continuity ISO]
In order for ourcompany to meet theincreasing demandsof our stakeholders forbusiness continuity
activities, we are
actively proceeding
Accreditation for business
continuity ISO (ISO22301)

with the acquisition ofinternational

certifications for our business continuity management
systems (BCMS). Up to this point, our businesses for the“laser diode products business” (Chiba Works) and“copper wire products business” (Mie Works) havesuccessfully received BCMS ISO standard (ISO22301)
certification. In fiscal 2016, we aimed for additional
certification in new business areas and obtained ISO22301
certification for our magnet wire production division, whoseplant is the Furukawa Magnet Wire Mie Works. This plant
manufactures magnet wires used in motors, and this ISO
certification of this division has allowed us to establish a
uniform business continuity system from the upstream
process of the “manufacture of copper wire” to the“manufacture of magnet wire”, for our customers in areas
including automobiles and electrical industry fields.
[Emergency headquarters training]

30

Situation at Emergency Response Headquarters training workshop

with the training conditions covering a 3-day period startingfrom the day of the disaster. We held exercises in aworkshop format on the roles to be performed and actions
to be taken between the Site Response Headquarters andProduction Division of the disaster area, and the Emergency
Response Headquarters of our Head Office. Our President
gave the following comments: “Disasters can occur at any
time. That is why improving the speed and efficiency which
are used even in our everyday preparations is a highly
urgent issue”, and “The leadership capabilities of personnel
who are responsible for disaster sites are extremely
important. I would like such know-how to be accumulated
through OJT in order to strengthen this leadership”.
[Disaster headquarters training at the Head Office]As part of Disaster Headquarters training at the Head
Office, we continued with the training content held in fiscal
2015, in which employees actually walked home along theroutes indicated on the maps to be used in the event of adisaster. We had even more participants this time, in the

In our BCM training for fiscal 2016, we considered thesecond year of this training, with 4 routes organized

scenario of a large earthquake striking our Hiratsuka Works,

beginning from Marunouchi. Employees walked along

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Management

Disaster headquarters training at
the Head Office

Training on returning home by walking:(1) Leaving the office

Training on returning home by walking:(2) On the walking route

Training on returning home by walking:(3) Checkpoint

these routes over a roughly 2-hour distance whiletake appropriate response when suspicious e-mails haveconfirming high risk locations and potential evacuation

been received, and calling attention to such incidents. In

shelters. Participants shared opinions such as “When we

coordination with related departments, we will continue towalk for such a long distance, having to use the restroom

promote measures to reduce cyber-security risks, from thestarts to become a concern” and “Even though there areperspectives of both technical countermeasures andconvenience stores along the way, there are surprisingly

improving the awareness of individual employees.

few places where you can just take a short rest”.

Information Security
Information security is considered one of the highest-

Protection of Intellectual Property
Furukawa Electric conducts strategic and efficient
intellectual activities in line with our business andpriority risks the Group has to handle. Therefore wedevelopment strategies. Our activities for patent portfolio

promote various countermeasures through intergroupmanagement are underway as we proceed with thecollaboration by exchanging information among the related

strategic acquisition of intellectual property rights, whiledivisions, from the perspectives of protecting information

also taking into account multifaceted analysis of competitor

systems and intellectual property as well as information

trends. These activities have allowed us to receive “Topmanagement. We continue our efforts to prevent

100 Global Innovators” awards for fiscal 2014 and 2015,

information leaks by focusing on the management ofand have been given great international praise.

hardware (mainly mobile devices) taken outside the office

We are also striving to reduce intellectual property risks

and to manage IT assets through such measures as

by strengthening measures to prevent exposure ofsoftware license management. We provide Furukawa

technology at development and production sites, andElectric Group with educational materials and information

enhancing information integrity by introducing time stamp

on the revisions of information security-related laws such

systems. In addition, we are deploying Group Global

as the Act on Prohibition of Unauthorized Computermeasures which include both domestic and overseas

Access, the Unfair Competition Prevention Act and the Act

affiliated companies, such as systematically implementing

on the Protection of Personal Information. In our aim forintellectual property training, holding Group intellectual

ongoing improvement, we get feedback from divisions

property conferences twice a year, publishing periodical

promoting these activities.

newsletters on intellectual property risks, and providing

Damage caused by cyber-attacks is being reported withincreasing frequency around the world. In view of the many
corporations subjected to such damage even within
Japan, our company has organized guidelines to serve as
reminders for our employees, containing information onrecognition including the President’s Award to outstanding
innovations or intellectual property activities.

Challenges and Future Policy
Following our international business development, risks

initial response measures to be taken if cyber-attacks havethat Furukawa Electric Group faces are becoming more

occurred and key points for identifying suspicious e-mails.

diversified and complicated each year. We particularly

In continuation from our training conducted last year torecognize that risks inherent in overseas operations―prevent damage from fraudulent e-mails, we carried out

mainly in emerging countries―and risks from the supply

simulation training for targeted attack e-mails, with thechain standpoint are our top priority issues, and we will beobjectives of verifying the capability of our employees tostrengthening our countermeasures against them.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201731

Compliance
Basic Approach

Electric Group employees and take many opportunities

Furukawa Electric Group regards compliance as “notto make use of it. We conduct compliance education for

only observing laws and regulations, but also as acting in

employees at every level of the Company, from newaccordance with the values and ethics required of therecruits to directors. At the same time, we hold theme-

company and its employees as responsible members of

based group training and e-learning courses, andsociety”. Each and every employee is encouraged to

conduct groupwide compliance education.

perform day-to-day compliance activities in line with ourthree musts for compliance activities: to “be aware”,

Education Results (fiscal 2016)“speak” and “rectify”.

Course Name

Three Musts for Compliance Activities

Speak
Be awareHierarchybased
education(note 1)

Rectify
1) Be aware
・Is this in line with the philosophy and CSR
Code of Conduct?
・Is this an improper practice?
・Does this run counter to society's

Themespecificeducation

TargetParticipants

Training forexecutives

Newly appointed
executives

23

Training for
managers

Newly appointed
managers

51

Training for
managers
and assistantmanagers

Newly appointed
managers
and assistantmanagers

42

Training for new
employees

New employees

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

299

Subcontractor Law

670

Security trade control

671(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.

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 and3) Rectify

November as Compliance Months, during which we

・As soon as you become aware of it, fix it.

implement measures aimed at tackling the variety of・Always improve.

compliance issues faced by companies across our Group.
Principal Initiatives during Fiscal 2016 Compliance Months
Main Initiatives at Furukawa Electric

Training and Raising Awareness among
Employees
We conduct a host of training and awareness activities

1C onduct workplace self-checks according tosection-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

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FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

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 h a v e b i a n n u a l l y c o n t i n u e d t o i m p l e m e n t

Furukawa Electric Group formulated the Furukawa Electriccompliance awareness surveys at Furukawa Electric andGroup Anti-Bribery Statement in April 2012. In December,affiliates in Japan. Designed to gauge employee

we published the Furukawa Electric Group Anti-Bribery

awareness and understanding of compliance, these

Guide, and we are promoting activities toward creating asurveys aim to encourage recognition of compliance.

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 2016, weconducted compliance awareness survey from a view
point of understanding of CSR Code of Conduct.

Internal Reporting System
Furukawa Electric Group has introduced an internalreporting system to earlier detect and correct illegal acts.

Overseas compliance seminar
In fiscal 2014, we conduc ted group-t ype
compliance seminar taking account of local laws
and customs. In fiscal 2015, we held a seminar oncompetition law and anti-bribery regulation at China
and in fiscal 2016, about 40 staffs of local
companies, mainly Thais, attended lectures by alawyer in Thai and Japanese and took part indiscussions on compliance.

The Company has in place an internal reporting desk aswell as an external reporting desk that makes use ofoutside third-party institutions (the Furukawa ElectricGroup Hotline), both of which allow employees to makereports anonymously. An internal reporting secretariat

Challenges and Future Policy

manages the content of such reports stringently, taking

Regarding the various legal compliance measures weample care to prevent people making such reports fromhave taken to date, we recognize as a Group that oursuffering any negative impacts, looking into issues swiftly

task is to expand the scope of participation of Groupand taking appropriate action. In fiscal 2016, we newly

companies. To this end, we will try to raise compliance

set up external reporting desks for oversea affiliates. We

awareness by focusing on more effective education

started to set up from mainly China and Southeast Asia

content with a Group perspective and enhancing its

where many our Group companies were expanding theirglobal implementation system. We will also hold morebusiness.

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 201733