CSR(Corporate Social Responsibility):Continuous Development of Trust

To Be an Honest and Healthy Company

In addition to legal compliance, we continuously promote Group-wide initiatives to develop business activities that are correct in accordance with social ethics on a global scale.

Compliance Promotion System

Along with legal compliance, we strive to ensure the observance of social ethics to conduct fair and sound business activities. CSR & Corporate Communications Division receives reports on compliance-related problems and external information on compliance in an integrated manner, takes corrective actions and promotes measures to prevent recurrence throughout the Group while receiving advice and guidance from lawyers, consultants and external experts.

●Compliance Promotion System Diagram
Compliance Promotion System Diagram

Establishment of a Counterparty Screening System

We have established a counterparty screening system to mitigatethe risks associated with the globalization of our transactions. Responsible Business Department, which was newly set up in CSR & Corporate Communications Division, strictly screens counterparties to prevent any involvement in the infringement of human rights, conflicts, corruption, money laundering, funding to terrorists and to avoid transactions with those subject to sanctions or antisocial forces.

Compliance Training

To enhance the awareness of compliance and prevent dishonest acts, we launched e-learning courses for domestic and overseas expatriate staff, as well as local staff in managerial positions, in October 2018. The subjects of the courses include the internal reporting system, compliance with the Antimonopoly Law and protection of personal information and a total of 380 persons have taken them as of May 2019. We also organize seminars that respond to the specific risks of the countries where the bases of the Tanaka Kikinzoku Group are located. In fiscal 2018, the seminars were held at our bases in China and Germany.

Whistleblowing System

We have established an whistleblowing system to detect and correct any non-compliance, dishonest act, etc. at an early stage. When a report is made, the Internal Reporting Committee investigates and examines the report and if necessary, orders the relevant persons and departments to take corrective measures. The whistleblowers are strictly protected to ensure that they will not suffer a disadvantage.

TANAKA NOW

Responsible Business Department was set up in April 2018 to respond to international guidance on CSR and avoid sanctions by countries in association with the globalization of our transactions.
We have introduced a counterparty screening system and work to disseminate it in the company to ensure that Tanaka Kikinzoku Group companies would not be involved in the infringement of human rights, conflict minerals, money laundering, funding to terrorists or other issues.
In addition, we strive to keep trust from customers through the maintenance of certificates, such as those from LBMA and LPPM, and RBA and other CSR audits and surveys requested by customers.

Manager, Transaction Screening Department, CSR & Corporate Communications Division, TANAKA Holdings Co., Ltd. FUKUSHIMA, Atsushi

Manager, Responsible Business Department,
CSR & Corporate Communications Division,
TANAKA Holdings Co., Ltd.
FUKUSHIMA, Atsushi

Risk Management Committee

Risk Management Committee is composed of the president and division managers of TANAKA Holdings and holds regular meetings, which are also attended by auditors. At the meetings, the committee evaluates risks, checks the status of actions for the risks to be addressed and determines crucial risks in order to reduce management risks. The crucial risks determined in the meetings will be addressed by the respective committees and departments in charge of the individual risks.

●Risk Management Structure

Business Continuity Planning (BCP)

In fiscal 2018, in addition to a drill of the emergency task force for the departments of Headquarters, we conducted a drill on the initial response and business continuity that simulated a large earthquake (BCP drill) at the plants and facilities. For the issues identified through the drills, we are making improvements in a planned manner.

  • BCP drill at Tomioka Plant of Tanaka Kikinzoku Kogyo K.K.
    BCP drill at Tomioka Plant of Tanaka Kikinzoku Kogyo K.K.
  • BCP drill at Hukou Plant of Taiwan Tanaka Kikinzoku Kogyo Co., Ltd.
    BCP drill at Hukou Plant of Taiwan Tanaka Kikinzoku Kogyo Co., Ltd.

In addition, we periodically conduct a safety confirmation test to check the safety of all employees in Japan in a prompt and reliable manner. The system registration rate of the employees is 100%. The reply rate within 24 hours from the occurrence exceeded 90% in all cases of Northern Nagano Earthquake in May 2018, Hokkaido Eastern Iburi Earthquake in September 2018 and Kumamoto Earthquake in January 2019.

●Reply rate for the confirmation of safety within 24 hours (Kumamoto Earthquake)

Corporate Governance

Tanaka Kikinzoku Group aims to realize healthy and transparent business management by enhancing the management monitoring mechanism and to always be efficient and competitive companies.
We have also established a corporate governance system and specified basic policy for internal control to ensure respect for the rights and interests of all stakeholders and business operations, accounting and other activities in a legitimate and proper manner. Based on the system and basic policy, the Board of Directors, Group Management Committee, the Board of Auditors and Internal Auditing Department play their respective roles.

●Governance Structure Diagram