Corporate Governance

Initiatives to Strengthen Corporate Governance

Nihon Kohden recognizes that its most important responsibility to stakeholders is continually fulfilling its corporate social responsibilities through sound business activities. At the same time, Nihon Kohden believes that corporate governance, in particular, compliance and risk management, is key to fulfilling this responsibility. To that end, Nihon Kohden strives to strengthen and enhance its corporate governance as a top priority. 

Promoting and Practicing Compliance

The Nihon Kohden Corporate Behavior Charter and Nihon Kohden Corporate Ethics Regulations form the Company’s fundamental approach to compliance. Nihon Kohden is fully aware that the sound ethics and rigorous legal compliance of all employees in accordance with this approach is paramount to the continuity of the company.

To ensure that employees practice compliance, Nihon Kohden has prepared a Compliance Pocketbook which contains both the Nihon Kohden Corporate Behavior Charter and Nihon Kohden Corporate Ethics Regulations for quick reference and to foster greater understanding about compliance practices at the company. The Compliance Pocketbook is given out to all employees of the Nihon Kohden Group in Japan.

Compliance Promotion Framework

Nihon Kohden has created a Compliance Committee as an organization charged with ensuring that compliance practices are carried out properly. The Compliance Committee also provides compliance training for employees and monitors the status of compliance within the company. In addition, the heads of each group company and business division work with and report to the Compliance Committee in their role as compliance administrators.

Strengthening Our Risk Management System

Nihon Kohden prevents the emergence of various risks within the execution of its business operations using an appropriate system of internal controls. If a risk does emerge, Nihon Kohden immediately ascertains the situation and carries out the necessary proper response. By doing so, Nihon Kohden is able to fulfill its corporate social responsibilities and ensure its continuity as a going concern. The risks inherent to the execution of Nihon Kohden’s business operations have been categorized as follows. Each risk is assigned to a special committee and dedicated department that perform risk management and regularly evaluate and report on the validity of these measures.
Definition of risk Details of risk Organization in Charge
Strategic risk Risks to management strategy Board of Directors' Meeting / Management Council
Compliance risk Risk of incurring losses due to failure to comply with compliance related laws and regulations Compliance Committee
Financial/accounting risk Risk of incurring losses due to fluctuations in the value of assets or improper accounting practices Accounting department
Quality control risk Risk of incurring losses by problems related to the safety or reliability of the company’s products and/or services Quality Control Committee
Environmental risk Risk of incurring losses from environmental pollution caused by insufficient environmental pollution prevention measures or failure to reduce environmental impacts Environmental Committee
Disaster/accident risk Risk of incurring losses by a hindrance to business operations caused by a disaster or accident Disaster Preparedness Committee
System risk Risk of incurring losses caused by failure, glitches or illegal access related to the company’s computer system IT Committee
Information disclosure risk Risk of incurring losses due to the incorrect or improper disclosure of information Information Disclosure Committee

Disaster Risk Management

To ensure the safety of employees and their families during a large-scale natural disaster and to ensure continuity and recovery of business operations after a disaster, we have taken measures to reduce disaster damage in offices, prepared an initial response manual for disasters, and developed an emergency communication flow. We also developed a Business Continuity Plan to enable the continuous provision of products and services or rapid recover from a massive earthquake. Company-wide education and drills are held regularly to ensure that all employees act appropriately according to our initial response manual and our Business Continuity Plan in the event of a disaster.

Safety Confirmation System

Nihon Kohden rolled out its safety confirmation system in 2009. The safety confirmation system enables us to quickly ascertain the safety of employees and their families after a disaster as well as ascertain the extent of the damage and implement measures to restart business operations. During a disaster, an email is sent to all employees in the affected region. Responses to this email are monitored on a dedicated web page. To ensure access to a communication method, Nihon Kohden deploys satellite phones that are not bound to the normal telecommunications networks in each of its principal business locations in Japan.

Disaster Preparedness Kits

Nihon Kohden provides a disaster preparedness kit to each of its employees in Japan. This is a portable bag containing essential supplies for an earthquake, typhoon or other natural disaster.
Each Nihon Kohden site also maintains food and water rations in preparation for emergencies.

Information system risk management

IS 617365 / JIS Q 27001
Nihon Kohden has obtained ISMS (Information Security Management System) JIS Q 27001 (ISO / IEC 27001) certification for management and operation of facilities for its remote service of diagnostic information system. We keep improving our information security system to thoroughly protect customer's sensitive information, and to act appropriately in the cases of disasters.
Registration Information
Registration Number IS 617365
Scope of registration Management of remote service facilities
Registered Location Nishiochiai office
Higashinakano office
Ochiai Takayama building in Higashinakano office
Kansai Area Service
Registration date January 19, 2015