GovernanceCorporate 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 & 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 2018

GovernanceCorporate 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 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 & Automotive
Systems Div.
・Automotive Products 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.

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, 2018

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 201823

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 compensation

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 & Automotive Systems Division in order to

website.

supervise closely related business divisions. Furthermore,
we appoint Advisors of Functional Component 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’ Compensation
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

compensation and details of each officer's compensation

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

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

GovernanceCommittee 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.

Compensation policy of Company’s officers
The compensation 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 201825

CSR Management
Basic Policy and CSR Code of Conduct
Each of the companies in Furukawa Electric Group develops CSR activities in line with the following Group basic policy.
The CSR Code of Conduct defines fundamental rules of behavior for Furukawa Electric Group executives andemployees to follow in conducting corporate activities based on Furukawa Electric Group philosophy and from theperspective of corporate social responsibility.

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 andendeavor to create social value throughtechnological innovation, complying
with laws, social norms, and ethics as amember of the international community.
・We will strive to maintain and build soundand friendly relationships with all of
our stakeholders and contribute to thesustainable development of society.

Furukawa Electric Group CSR Code of Conduct（Revised March, 2011）
1. Human rights
 orking conditions and environment
2. W
3. Environment
4. Products and services
5. International businesses and transactions
6. Fair competition
 elations with customers, partners, and society
7. R
8. M
 anagement and preservation of Company assets
9. Disclosure of information
10.	Duties and obligations of senior management and employees
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 comprises memberssocial responsibilities of Furukawa Electric Group andof management, as the structure for supervising andimplement policies in line with the Basic CSR Policy. We

promoting CSR activities throughout Furukawa Electric

will 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

Promotion Framework

promotes CSR by facilitating

Board of Directors

communication among various
committees and corporate

Submit proposals and reports
CSR and
Risk Management
Committee

Committee chair: President
Committee members: Management
Organizer: General Manager,
CSR Department

President

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

Promotion / Support

other

Business divisions (internal + Group companies)

26

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Each corporate
department

departments.

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

Achieved

FY 2017
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- I mprovement of the introduction
rate of internal reporting systems
in companies with consolidated
systems

Not achieved

FY 2018
Results

Achievement

Targets

Enhancement of the compliancefunctions associated with theglobal business expansion

 onducted compliance education for-Cgroup company staff in Indonesia(Jakarta)- Implementation of the compliancerelated education in the overseas
high risk area

Strengthening overseas risk
management-U nderstand and summarize anyrisks which could conceivably
impact business, and also
formulate policies to address
those risks

Partially achieved-F ormulation of the action policies basedon the captured and organized risks
obtained from surveys on overseas risk

- Approximately 95% of the overseas
institutional consolidated companies haveintroduced the whistle- blowing system

Strengthening overseas risk
management-E xtension of the overseas
emergency response manual

Enhancement of the cybersecurity measures- Implementation of the emergency
response training based on theactivity policy of the “Furukawa
Electric CSIRT (note) ”.

(note) CSIRT:The abbreviation of “Computer Security Incident Response
Team”. The team is prepared to cope with the occurrenceof cyber incidents. The team promptly investigate causes,
identify the range of impacts and eradicate the infection
upon an occurrence of an incident.

Messagefrom

the General
Managers

We will promote the Corporate Social Responsibility(CSR) activity based on the firm functional capabilityof the promotional structure and mechanism.
Yasuhiro Yonezawa
General Manager, CSR Department,
Administration & CSR Division

In the activity of the increasing change in the businessenvironment due to the global business development,
Furukawa Electric Group is requested to steadily fulfill the
responsibility to the stakeholders while adapting changes
being aware of various stakeholders. Under thesecircumstances, the CSR activities are an important
foundation for the business growth and the continuation of

Furukawa Electric Group. Based on our Group Philosophy,
Furukawa Electric Group has established Basic Policy
and Code of Conduct regarding the CSR and has
consolidated the promotional structure and themechanism. Furukawa Electric Group will devise the solidfunctional capability and continue to promote the CSR
activities.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201827

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.

Important Companywide Risks

In the event a large-scale disaster occurs or other such riskmaterializes, Furukawa Electric Group will establish Emergency• Compliance

Response Headquarters, headed by the president, and Site

• Quality control

Response Headquarters that defines each department's roles and arge-scale disasters, such as earthquakes•Lclarifies them ahead of time. We also conduct regular exercises on• Information security

preparing initial action manuals, stockpiling necessary supplies,• Affiliated company controls

and setting up communication structures and systems to confirm
people's safety.

BCM (Business Continuity Management)[Business continuity ISO]
In order to meet the increasing demands of our stakeholders for the business continuity activities, the Company
is actively proceeding with the acquisition of international
certifications for our Business Continuity Management
Systems (BCMS). Up to this point, our businesses for the28

Situation at Emergency
Response Headquarters
training workshop“laser diode products business” (Chiba Works), “copper

having a smile to encourage the employees.” and “I wish

wire products business” and “copper winding products

you to keep your eyes open regarding making a plan to fillbusiness for motor” (both in Mie Works) have successfully

the gaps between the ideal state and the current states.”received the BCMS ISO standard (ISO22301) certification.

[Disaster headquarters training at the Head Office]Each business division operates the Business Continuity

In the training at the Disaster headquarters in the headManagement (BCM), as well as implements a BCM

office, after the safety confirmation call over training,

activity plan at the beginning of the term, an education at

education on the earthquake response manual of thethe workplace and an internal audit, take into accounthead office, the health lecture such as how to use AED

such as “super heavy rain” and “pandemic” other thanand triage presented by an industrial doctor, a training toearthquakes, as an exercise, and working to strengthen

carry out from a stockpile warehouse, etc. In addition,

the resilience of the important business continuity.

“Walking Home Training” which is actually take a walk on[Emergency headquarters training]

the return home route having a return home route map inIn the BCM training for fiscal 2017, based on the assum-

the event of a disaster, was implemented with 21

ption that the Chiba Works of the Company was affectedparticipants by newly adding a Koshu Kaido (Shinjyuku)

by a major earthquake, we conducted in a workshop

direction to 4 routes starting from Marunouchi. In eachformat exercises related to the roles and the actions to beroute, the participants walked about 2 hours while

taken between the Site Response Headquarters, thechecking the hazardous places and the evacuation

Production Divisions and the Sales Divisions in the disaster

facilities, etc. The participants explained their impression:area, and the Emergency Response Headquarter in the“I was encouraged to be acquainted with colleagues

Head Office. The President gave the following instructions:

returning home taking the same route”, “It was a good

“Organizational leaders should have strong thoughts on

experience to obtain a sense of the places by walking”, “It

restoration and reviving from the disaster, in consideration

will create a severe difficulty as streets will be filled with aof the mental and physical health of the employees andlarge number of people in the event of an emergency”, etc.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

GovernanceDisaster headquarters training at the Head Office

to enhance the cyber security management system
including Furukawa Electric Group companies.

Intellectual Property Risks
The Company aims to stabilize the management by
Safety confirmation call over training

Health lecture

strategically creating the intellectual property rights basedon the patent portfolio management that grasps the trends
in the other companies, also by decreasing the intellectual
property risks.
The intellectual property risks are divided into four
categories: “Rights infringement risks”, “Counterfeit

Briefing on “Walking Home
Training”

Walking Home Training: Leaving
the officeInformation Security
Information security is considered one of the highestpriority risks Furukawa Electric Group has to handle.

products risks”, “Contract risks” and “Technology leakage
risks”. For example, against the “Technology leakage
risks”, the following measures are taken: “Technology
concealment of the development site and the productionsite”, “Information maintenance strengthening with thetime stamp system”, etc.

Therefore we promote various countermeasures throughWe also develop the intellectual risk reduction activity inintergroup collaboration by exchanging information among

Furukawa Electric group globally, based on thethe related divisions, from the perspectives of protecting

implementation of the systematic training of Furukawa

information systems and intellectual property as well as

Electric Group in domestically and internationally, theinformation management. We continue our efforts toregular issuance of the newsletters introducing efforts toprevent information leaks by focusing on the management

reduce intellectual property risks, by the President’of hardware (mainly mobile devices) taken outside theawards for excellent inventions and activities, etc.

office and to manage IT assets through such measures as

Organizational structure on cyber security

software license management. We provide Furukawa
Electric Group with educational materials and informationon the revisions of information security-related laws suchas the Act on Prohibition of Unauthorized Computer
Access, the Unfair Competition Prevention Act and the Act
on the Protection of Personal Information. In our aim forongoing improvement, we get feedback from divisions
promoting these activities.

CSR and Risk Management Committee
Central Disaster Prevention and Business Continuity
Management Promotion Committee
Special committee on cyber security
Furukawa Electric CSIRTCSR Department

ICT Strategy
Planning Department

IT Maintenance andOperation Department

In these days, the risks of the cyber security are getting
more and more serious due to the increasing damages
caused by conditions such as the target type attack (note 1)of the cyber attacks aiming at companies and individuals.
In connection with these situations, the Company
established the cyber security system based on the“Cyber Security Management Guideline” issued by the
Cabinet Office, and set up the “Furukawa Electric CSIRT”. In the ordinary situations, the CSITR analyses the(note 2)vulnerability diagnosis and the risk together with the(note 1) Targeted attack: This is characterized by the step by step progress like
“Identifying the attack target-Initial infiltration-Infiltration base buildingPurpose execution”. At the initial infiltration step, mail containing computerviruses etc. are mailed and causes the virus to infect by opening theattachment or by clicking on the link in the text body.
(note 2) C SIRT: The abbreviation of “Computer Security Incident Response Team”.
The team is prepared to cope with the occurrence of cyber incidents.
The team promptly investigate causes, identify the range of impacts anderadicate the infection upon an occurrence of an incident.

Challenges and Future Policy
Following our international business development, risks

monitoring of the network environment. In the emergency

that Furukawa Electric Group faces are becoming moresituations, the CSIRT identifies the causes of the incidents

diversified and complicated each year. We particularly

and promptly determinates the situation by finding out

recognize that risks inherent in overseas operations―the range of the influence together with taking a role tomainly in emerging countries―and risks from the supply

prevent the spread of the damages in collaboration withchain standpoint are our top priority issues, and we will beinternals and externals to the Company. We will continue

strengthening our countermeasures against them.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201829

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 2017)“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

18

Training for
managers

Newly appointed
managers

79

Training for
managers
and assistantmanagers

Newly appointed
managers
and assistantmanagers

49

Training for new
employees

New employees

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

246

Subcontractor Law

627

Security trade control

853(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 2017 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

30

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

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

Governance

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 2018, as in fiscal
2016, we will conduct compliance awareness survey
based on CSR Code of Conduct.

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 desk as

Overseas compliance seminar
From fiscal 2014, we started to conduct grouptype compliance seminar focused on competition
law and anti-bribery taking account of local laws andcustoms. By fiscal 2015, we held the seminar in
China. In fiscal 2016 we held it at Bangkok in
Thailand and in fiscal 2017 at Jakarta in Indonesia.
38 sales or purchase staffs from 5 affiliates attended
the seminar lectured by lawyers in Indonesian andJapanese and discussed on compliance.

well 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
manages the content of such reports stringently, taking
ample care to prevent people making such reports from
suffering any negative impacts, looking into issues swiftly
and taking appropriate action. In fiscal 2016, we newly
set up external reporting desks for oversea affiliates. By
the end of fiscal 2017, we have set them up in 10
countries and 40 affiliates.

Security Trade Control
Furukawa Electric Group considers security trade control
to be one of its most important responsibilities as a

Challenges and Future Policy

company with global business operations. In accordance

Regarding the various legal compliance measures wewith the laws and regulations that make up the international

have taken to date, we recognize as a Group that ourframework on security trade control (the export control

task is to expand the scope of participation of Groupregime), we have improved and strengthened ourcompanies. To this end, we will try to raise compliancemanagement systems for cargoes and technologies thatawareness by focusing on more effective education

can be converted to weapons or military uses. In exporting

content with a Group perspective and enhancing its

products and providing technology, we conduct

global implementation system. We will also hold moretransaction screenings based on our Security Tradecompliance seminars taking account of local laws,

Control Regulations to ensure compliance with relevant

languages and customs, encouraging individual initiative

legislation and are careful to prevent circumvent tounder the slogan “Think and conduct compliancecountries of concern.

together”.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201831