Management

Corporate Governance
Basic Views on Corporate GovernanceFurukawa Electric has established the following 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 toenhance its performance by promptly responding to changes in the business environment
and the market through efficient management based on prompt decision making. At thesame time, 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 throughthese 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 roles of independent directors important and carries out effective oversight ofoperation from objective standpoint.
v.	We engage in constructive dialogue with shareholders who have investment policies
in accordance with interests of mid- to long-term shareholders.

20

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

Corporate governance organization chart
Shareholders’ Meeting

Monitoring and Supervising

Appoints

Audits account

Board of Directors

Submits reports

12 Directors(4 outside directors including 2 independent directors)

Consults andCommits
Submits
proposals
andreports

Nominating /Compensation
Committee

CSR and Risk
Management Committee

Appoints

Appoints

Audit & Supervisory
Board

Submits reports,
attends meetings
and audits

Accounting
Auditors

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
Telecommunication
Solution Div.
・Optical Fiber & Cable
Products Div.
・FITEL Products Div.
・Broadband Products Div.

Automotive & Electronics
Material Business・Electric Conductor Div.
・Magnet Wire Div.
・Copper & High Performance
Material Products Div.
Functional Component Business

・Automotive Products Div.
・Power Cable Div.
・Industrial Cable & Power
Cable Accessories Div.
・Copper Foil Div.

・Functional Plastics Div.
・Thermal Management
Solution & Products Div.
・Memory Disk Div.
・Copper Tube Div.

・Sales & Marketing Div.
・Global Business Strategic
Initiatives Div.

Affiliate companies

As of June 24, 2015

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201521

Management

Process of Determining Officers’ Remuneration
and Avoiding Conflict of Interests

1) Efficient Execution of Responsibilities
After setting concrete management goals for the
Medium-Term Management Plan and over the course of

At Furukawa Electric, the policy on officers’

the fiscal year, all those responsible for operational

remuneration and details of each officer's remuneration

performance execute their responsibilities toward

are determined by the Nominating/Compensationachieving these goals and regularly report their progress

Committee consisted the majority of the committee

to the Board of Directors.

comprising outside directors, based on the delegationfrom the Board of Directors in order to ensure objectivity
and transparency of the decision-making process.

2) Compliance System
Upholding the basic philosophy of compliance with

In addition, in the case where Directors conduct

ethics and prevailing laws as laid out in the “Furukawa

transactions involving a conflict of interests, they must

Electric Group Philosophy” and the “Furukawa Electric

be based on approval at the Board of Directors’ meetingGroup CSR Code of Conduct”, we, with the President

as required by law.

assuming the highest responsibility, promote complianceactivities including in-house education and efforts toprevent and detect legal violations through our CSR and

Remuneration policy of Company’s officers
T h e re m u n e r a t i o n o f o ff i c e r s s h a l l b e
determined in a way that encourages each
officer to exert his/her abilities to the maximum
level and proactively fulfill his/her duties, sothat the Company Group will increase its
corporate value and achieve sustainablegrowth while contributing to society through its
business activities.
 irectors excluding outside directors are paid-Dmonthly remuneration and performancelinked remuneration. Monthly remuneration isa monthly cash payment of an amountdetermined according to contribution to theCompany, etc. based on a standard amountfor each title. Performance linked
remuneration is an annual cash payment of
an individually specific amount determined byallocationg the total amount to be paid
calculated based on consolidated net income
each fiscal year according to position. In
addition, according to Company's situation,
they are paid bonus based on a resolution ofshareholders’ meeting.
-O utside directors and Audit & Supervisory
Board Members are paid a certain monthly
remuneration depending on their titles, etc.

Risk Management Committee, which is under theimmediate control of the Board of Directors, and theAdministration & CSR Division. We also have an Internal
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 management method in the “Basic Regulations on
Risk Management and Internal Control”. In addition, we
have established a system in which the CSR and Risk
Management Committee, chaired by the President,
grasps an overall picture of the risks associated with thebusiness operations of Furukawa Electric Group anddetermines effective methods for evaluating andmanaging these risks.
4) Information Management System
We appropriately manage and store records anddocuments related to important decisions, in compliancewith prevailing laws and internal rules. With respect toother information related to our operations, theInformation Security Committee establishes uniform
standards and operates an information management
system.
5) Group Company Management

Reinforcing Internal Controls
Furukawa Electric establishes, develops and operates
its internal controls based on the following principles:

In accordance with the “Regulations on GroupManagement Control”, administrative managers ofindividual subsidiaries shall be appointed, and they shallrequire own subsidiaries reporting subsidiaries’ businessconditions on a regular basis, and offer management
guidance to subsidiaries. Predetermined matters shall

22

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

require approval of us. We also carry out a mid-term
management plan and budgets for single fiscal years,
risk management, and compliance as Furukawa ElectricStrengthening of Corporate GovernanceWe invite outside officers from different business areasin the hope of obtaining contributions to management

Group.

based on their diverse knowledge, experience and6) Securing Appropriateness of Financial Reporting

capacities. We also established a compensation

Based on the “Basic Regulations on Risk

committee comprised of four members including two

Management and Internal Control”, we will establish theoutside officers in May 2010 to deliberate and decide on“Furukawa Electric Group Basic Philosophy for the

remuneration for directors, etc. In this way, we havedevelopment and evaluation of an internal control

been implementing corporate governance as our

system, to ensure the appropriateness of financial

priority. To strengthen these systems, we establishedreporting (J-SOX Core Policies)”. At the same time, thethe Nominating/Compensation Committee, replacing thesystem and responsibilities shall be clarified for theformer Compensation Committee upon our board's

system’s construction, development, operation, anddecision on May 11 2015. Through the majority of themonitoring.

committee comprising outside directors, we secure theobjectivity and transparency as to nominating andremuneration for directors. In addition, we established

Takeover Defense Measurescriteria for an independent officer. Going forward, toward

Following the approval by the 191 ordinary generalstmanagement focusing on capital efficiency, our board,

meeting of shareholders held on June 25, 2013, Furukawa

with input from outside directors, will continue to discuss

Electric Co., Ltd. has renewed its countermeasureson our capital policy balancing among growth and future(takeover defense) against large-scale purchases of the

new business investments, improvement of balanceits shares. The term of this takeover defense will expire

sheet and returns to our shareholders and we will reflectin three years at the conclusion of the ordinary generalthe discussion in the next mid-term management planmeeting of shareholders to be held in June 2016.

s t a r t i n g f ro m f i s c a l y e a r 2 0 16 . W i t h t h e f u l l y

For further details, please refer to “the Notice of theunderstanding of the aim and spirit of the corporate

Renewal of Countermeasures (Takeover Defense)

governance code, we will further strengthen our

Against Large-Scale Purchases of the Company's

corporate governance.

Shares” (PDF file) the news release published on thecorporate governance of the company’s website on
April 11, 2013.

Corporate governancehttp://www.furukawa.co.jp/english/kaisya/management/governance.htm

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201523

Management

CSR Management
Group Philosophy
Since our founding in 1884, we have worked to create the technologies and products that society
requires. We consider it our mission to contribute to the realization 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 with the following Groupbasic 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.

24

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

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
based on the Group philosophy and from the

1. Human rights

perspective of corporate social responsibility.

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(Japanese)(English)(Chinese)
CSR Compliance Handbook

CSR
http://www.furukawa.co.jp/english/csr/index.htm

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 201525

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- Promote
energy conservation and recycling-P rotect biodiversity-C urtail industrial waste- Manageand reduce harmful chemical substances

Customers

Suppliers

Suppliers

Shareholders

Means of Communication-C ompliance with laws and regulations- Compliancewith the Kyoto Protocol and the
Nagoya Protocol on biodiversity-R esponse to environmental activities of the
Ministry of the Environment and other governmentorgans-R esearch and information exchange on
biodiversity preservation through JBIB (note 1)-M aintain and improve the quality of products,
operations and services-O ffer products and services that are useful tosociety-D ialogue through regular business-P rovide solutions to issues confronting customers
through 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-R ealize CSR throughout the supply chain byimplementing CSR Deployment Guideline for
Business Partners-C SR surveys-W ebsite, Sustainability Reports-D ialogue through regular business- Feedbackinterviews on results of partner
evaluations-S ustainability Reports

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-P romote health, including occupational health andsafety, 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- Cooperatewith and sponsor sports and traditional
events-L ive in harmony with the natural environment andlocal communities- Support
the activities of and collaborate with local
NPOs-P reserve the Satoyama Environment(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 2015

Management

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

Achieved

FY2014

Not achieved

FY2015

Targets

Promotion of global compliance-D evelop training content
targeting the whole group, etc.

Partially achieved

Results / Achievement

Targets- Integrated the anti-monopoly act manualfor Japan into our Group’s Competition
Law Compliance Guide and distributed it
to each company
1

Confidential

FEG Competition Laws Compliance Guide Second Edition

1

对外

版

保密

ド第２

スガイ
イアン

ンプラ

古河

争法コ

电工

集团

ープ競

竞争

工グル

法合

规指

古河電

南第

Furukawa Electric Group

社外秘

古河

競争

ープ

プライ

アン

Competition Laws
Compliance Guide

イド
スガ

法遵

守の

ため

の４

竞争

Competition Laws Compliance Policy

原則

(2014

数量

年8

など

月改

の情

訂)

遵守

1. Never exchange information on sales price, output or othercommercially sensitive information with competitors.

換をRightsReserved, Copyri

ght© FURU

KAWA

ELECT

RIC

CO.,

LTD.

集团

规指

版

南

法的

4 原则
不与
同行
(201
方面
业企
4年
的信
业之
8 月修
息。
间交
订)
２．
换任
不与
何有
同行
关销
接触
业企
售价
。
业进
格和
行可
３．
数量
能被
需要
等
认为
出席
违反
申请
与同
竞争
和事
行业
法的
后的
企业
４．
会面
聚会
高管
聚会
与
内容
的聚
上，
报告
会时
表明
如发
制度
，严
不参
生可
。
报告
格遵
与的
能属
。
守事
立场
于卡
前
，立
特尔
即退
及串
出，
通的
并向
行为
法务
时，
及合
规部
门

3. If you need to attend a meeting with competitors, obtain
permission to attend the meeting from appropriate authorities
within your company in advance and report the result thoroughly.
4. If any improper discussion which you suspect as cartel or bid
rigging is initiated at the meeting, explicitly state that you have nointention to participate in such conduct and leave the meeting
immediately. Such "solicitation to participate in a cartel" must bereported immediately to your company’s Compliance Department
and the Legal Department.

古河

All Rights Reserved, Copyright © FURUKAWA ELECTRIC CO., LTD. 2015

All

竞争

１．

2. Do not have meeting or communication with competitors where
violations of Competition Laws may be speculated.

格・
接触
売価
会・
、販
の面
間で
社と
との
業他
。
他社
る同
ない
同業
た
たれ
行わ
生じ
が持
一切
要が する。
疑い
る必
反の
徹底
席す
法違
告を
に出
の
い。
競争
後報
会合
それ
わな
の事
との
るお
は行
内容
職員
ない
当す
に
及び
加し
の役
に該
部門
に参
申請
他社
談合
ル・
それ イアンス
事前
同業
は、
は、
ルテ
３．
プラ
、カ したとき
場合
いて
・コン
ようと
にお
し、法務
われ
など
退席
が行
会合
ちに
行為 、直
４．
ある
告げ
。
旨を
する
報告

２．

电工

法合

第２

(Revised in August 2014)

報交

2版

1

古河

Second Edition

法コン 第２版

競争
１．

電工

グル

电气

2015

All

RightsReserved, Copyri

ght

工业

© FURU

KAWA

株式

ELECT

RIC

CO.,

会社

LTD.

2015

Strengthen business continuity
management (BCM)-B
 ased on the lessons learned
from the Nikko snow damage,switch from existing BCM
activities, which focus on ourown company, to activities
that focus on the customer’s
perspective.

-R eviewed the existing BCP with a focus
on divisions that suffered snow damage
in Nikko

Respond to risks in newlyemerging economies andstrengthen support for overseas
subsidiaries-S trengthen training in countries
with newly-emerging economies
and provide management
support tools to affiliatedcompanies.

-C onducted compliance seminars for local
affiliate managers in Southeast (Thailand)
and China (Shanghai)

Give direction to priority fields
in CSR activities- Hold stakeholder
communication

Develop a system for the
globalization of legal andcompliance functions-W ith a scenario of unforeseen events notdescribed in the BCP, implemented an
emergency headquarters drill with thepresident as headquarters manager, andreconfirmed the roles of each division-C onducted local law complianceseminars for local staff in China (Tianjin
and Shenzhen)-U pgraded the Furukawa Electric Group
Business Management Handbook forGroup companies-R eview and implement
compliance 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-C
 onducted discussions with local affiliate
managers and employees on CSR (inconjunction with compliance) activities
taking advantage of sustainability reports
and group training

Message from the General Managers
Takashi Fukuda
General Manager, CSR Department,
Administration & CSR Division

Nowadays, companies are
required to respond to a
rapidly changing world with avariety of stakeholders in
mind. As Furukawa ElectricGroup sets about this task,
CSR activities are an essential
par t of our sur vival as abusiness. Furukawa ElectricGroup has set out a basic
policy and code of conduct
for CSR in accordance with agroup philosophy that seeks
to meet the expectations of
our founder, in addition todeveloping a variety of related
systems and mechanisms. In
future, we will check that
updated systems arefunctioning effectively in theworkplace while supporting
improvements to operational
problems.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201527

Management

Risk Management
Overview of the Risk Management Structuremaps. Preparing emergency route maps for employees
to get home after an earthquake becomes clear as a

Our CSR and Risk Management Committee conducts

problem, so we introduced emergency route map-

regular risk assessments to determine what risks exist,

making software and are asking all employees to create

define important risks that require a companywide

their own emergency route map, and carry them at all

response and prioritize measures to counter these risks.

times.

Through specialized committee activities in segmentspecific areas—environment, quality, safety, disasterprevention—we are working to manage the risks that
relate to our business activities.

Important Companywide Risks• Compliance• Quality control•L arge-scale disasters, such as earthquakes• Information security• Affiliated company controls

Setup training of the emergency headquarter(Instruction of emergency headquarters manager Shibata)In the event a large-scale disaster occurs or othersuch risk materializes, the Group will establish
Emergency Response Headquarters, headed by thepresident, and Site Response Headquarters that defines
each department's roles and clarifies them ahead oftime. We also conduct regular exercises on preparing
initial action manuals, stockpiling necessary supplies,
and setting up communication structures and systems
to confirm people's safety.

Setup training of the emergency headquarter(Information control at headquarters secretariat)

BCM (Business Continuity Management)
Having reflected on the inadequate handling of the28

Information Security

snow damage that occurred at Nikko Works in February,

Information security is considered one of the highest-

2014, we conducted BCM drills in 2014 on the theme ofpriority risks the Group has to handle. Therefore we

revealing risks not described in the BCP (Businesspromote various countermeasures through intergroupContinuity Plan). After setup training of the emergency

collaboration by exchanging information among the related

headquarter, president and emergency headquarters

divisions, from the perspectives of protecting information

manager Mitsuyoshi Shibata told headquarters

systems and intellectual property as well as information

employees to “act with more initiative so that they canmanagement. We continue our efforts to prevent

conduct better and quicker communication andinformation leaks by focusing on the management of

information sharing,” and improvements are made to

hardware (mainly mobile devices) taken outside the office

BCM activities to address this task. In the disasterand to manage IT assets through such measures ascontrol headquarters drill at Head Office, where mostsoftware license management. We provide Furukawa

employees would have difficulties in returning home after

Electric Group with educational materials and informationa large-scale earthquake, we conducted a DIG (Disasteron the revisions of information security-related laws such

Imaginating Game) using commercially available street

as the Act on Prohibition of Unauthorized Computer

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

Access, the Unfair Competition Prevention Act (namely

extending our intellectual property activities worldwide,

trade secrets) , and the Act on the Protection of Personalpromoting intellectual property awareness within the

Information. In our aim for ongoing improvement, we solicit

Group through education on intellectual property rights

feedback from divisions promoting these activities. In fiscal

and information on intellectual property risks.

2014 we reviewed our security policy on information
systems for Group companies, and are conducting Groupwide upgrade activities including diagnostic visits fornecessary companies.

Challenges and Future Policy
Following our international business development, risks
that Furukawa Electric Group faces are becoming more

Protection of Intellectual Property

diversified and complicated each year. We particularly
recognize that risks inherent in overseas operations―

Furukawa Electric conducts strategic and efficient

mainly in emerging countries―and risks from the supply

intellectual activities in line with our business andchain standpoint are our top priority issues, and we willdevelopment strategies. As well as strategicallybe strengthening our countermeasures against them. For

developing intellectual property rights based on patentexample, our Global Group Management Division

portfolio management that recognizes trends among rival

provides support and information for Group companies

companies, we also encourage risk hedging such as

including creating the Furukawa Electric Group Businesspreventing technical leaks by technology confidentiality

Management Handbook for them in order to reinforce

and protecting our prior user rights. We are also

global risk management.

EICC Code of Conduct Audit
The EICC (Electronic Industry
C i t i z e n s hip C o a li t i o n ) w a s
founded by a group of leading
electronics companies, and its
EICC Code of Conduct is used
as a global CSR code of
conduct by many corporate
customers in Japan andoverseas. Furukawa Electric has
Keita Yoshimura,
been promoting company-wide
Assistant Manager
Production Dept., Memory activities toward compliancewith this code of conduct, theDisk Division
Memory Disk Division also has
been pushing forward the activities in an own section.
Nevertheless, the memory disks manufactured by this division
eventually find their way into computers and other devices allover the world, and demands regarding CSR management
activities from customers who have been directly supplied byour company are increasing year by year. To respond to suchdemands, it has become necessary to make the PDCA cyclein our CSR management activities more reliable by undergoinga third-party audit, our division performed first in the Furukawa
Electric Group in August 2014.
The audit targeted an extremely broad range of fields: labor,
health and safety, environmental, ethics, and management
system. The audit also included some requirements that were
so strict as to be beyond the general norm for Japanesecompanies, and even we were initially puzzled and wondered
whether global standards were really that demanding.
Nevertheless, by communicating closely with the related
divisions, affiliate companies, and partner companies, wemanaged to complete the audit without a big trouble. We are
currently conducting ongoing improvement activities related tothe audit findings. In future, we expect a further rise in demand
for CSR management with a more reliable PDCA cycle in our
CSR activities. In our division, we intend to deal with this byfurther upgrading our own activities. We also hope tocontribute to raising the standard of CSR management
activities throughout the entire company by proactively passing
on information about CSR audit experiences to other related
divisions who are expanding globally.

Members who received the EICC audit

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201529

Management

Complianceconduct groupwide compliance education.

Basic Approach
Furukawa Electric Group regards compliance as “notEducation Results (fiscal 2014)

only observing laws and regulations, but also as acting in

Course Name

TargetParticipants

accordance with the values and ethics required of theTraining forexecutives

Newly appointed
executives

30

Training for
managers

Newly appointed
managers

61

Training for
managers
and assistantmanagers

Newly appointed
managers
and assistantmanagers

85

Training for new
employees

New employees

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

About 360

Subcontractor Law

About 360

Security trade control

About 800

company and its employees as responsible members ofsociety”. Each and every employee is encouraged toperform day-to-day compliance activities in line with ourthree musts for compliance activities: to “be aware”,

Hierarchybased
education(note 1)

“speak” and “rectify”.

Three Musts for Compliance Activities

Speak
Be aware
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
requirements and expectations?
2) Speak・Do not neglect it.
・Talk about it openly.
・If still not sure, take it to your boss.
3) Rectify
・As soon as you become aware of it, fix it.
・Always improve.

Themespecificeducation(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.

Initiatives in Compliance Months
Furukawa Electric Group has designated October andNovember as Compliance Months, during which we
implement measures aimed at tackling the variety ofcompliance issues faced by companies across our Group.
Principal Initiatives during Fiscal 2014 Compliance Months
Main Initiatives at Furukawa Electric
1C
 onduct workplace self-checks according tosection-specific checklist<Section-Specific Checklist>
1) Anti- Monopoly Act, 2) Worker Dispatching Act
3) Subcontracting transactions, 4) Occupational safety
5) Asset protection, 6) Information security
2 Conduct workplace meetings

Training and Raising Awareness among
Employees

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

We conduct a host of training and awareness activities
in the aim of instilling compliance awareness among all
employees. Our primary shared educational materials are
the Furukawa Electric Group CSR Code of Conduct and30

Employee Compliance Awareness Surveys
We have continued to implement compliance awarenessits corresponding Furukawa Electric Group CSR

surveys at Furukawa Electric and affiliates in Japan.

Compliance Handbook. We distribute this handbook to

Designed to gauge employee awareness andFurukawa Electric Group employees and take many

understanding of compliance, these surveys aim toopportunities to make use of it. We conduct complianceencourage recognition of compliance. Feedback is given

education for employees at every level of the Company,on the results of the survey to our Group companies andfrom new recruits to directors. At the same time, we holdFurukawa Electric divisions, and the results are used totheme-based group training and e-learning courses, andmake proposals for compliance measures at each

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Management

organization. In fiscal 2014, we made improvements
such as adding questions related to personnel measuresand conducted the survey as an “employee survey”.

Internal Reporting System
Furukawa Electric Group has introduced an internalreporting system and works toward the early detection
and correction of incidents of corruption. The Company

China compliance seminar
In fiscal 2014, we conducted group-type complianceeducation to teach about local laws and customs. We
held seminars in December at Tianjin and Shenzhen on
the themes of competition law and corruption controls.
About 60 staff, mostly Chinese, attended lectures bylawyers in Chinese and Japanese and took part indiscussions on compliance.

has in place an internal reporting desk as well as anexternal reporting desk that makes use of outside thirdparty institutions (the Furukawa Electric Group Hotline),
both of which allow employees to make reports

Challenges and Future Policy

anonymously. An internal reporting secretariat manages

Regarding the various legal compliance measures wethe content of such reports stringently, taking ample

have taken to date, we recognize as a Group that ourcare to prevent people making such reports fromtask is to expand the scope of participation of Groupsuffering any negative impacts, looking into issues swiftlycompanies. To this end, we will try to raise complianceand taking appropriate action.

awareness by focusing on more effective education
content with a Group perspective and enhancing its

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

global implementation system. We will also resume more
compliance seminars on local laws, languages andcustoms, while encouraging individual initiative under theslogan “Think and conduct compliance together”.

company with global business operations. In accordancewith the laws and regulations that make up the internationalframework on security trade control (the export control

Non-compliance and corrective action

regime), we have improved and strengthened our

Furukawa Electric Group has since 2008 incorporated
the opinions of external experts in an attempt toeradicate violations of the anti-monopoly law andcompetition law. In April 2014, we and VISCAS
Corporation, one of our equity method affiliates, filed arequest to the European General Court to revoke orreduce the penalty previously imposed on us by theEuropean Commission for a violation of EU competition
law in the electric cable business.
We apologize deeply to everyone concerned for theconsiderable worry and inconvenience caused by thiscartel issue.
In January 2015, we revised our Competition Law
Compliance Guide (English, Chinese, and Japaneseedition), which is used as education material for
promoting global compliance, and distributed it to allcompanies in our Group. In response to the recent
tightening of regulations in various countries and regions,
including not only anti-monopoly laws and competition
laws but also anti-bribery and other legal areas, we will
work toward full compliance and the restoration of trust
by expanding activities throughout the Group such asenhanced training for executives and employees andstricter monitoring by our Internal Auditing Division.

management 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.

Anti-Bribery
Furukawa Electric Group formulated the Furukawa
Electric Group Anti-Bribery Statement in April 2012. In
December, we published the Furukawa Electric Group
Anti-Bribery Guide, and we are promoting activities toward
creating a groupwide bribery risk management system.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201531