The foundation of all activities: legal compliance, fair corporate activities

1.Please tell us about your job.
I am involved in compliance with the internal control reporting system for financial reporting (J-SOX), as well as antitrust audits, export control audits, and audits of the status of subsidiary operations.

2.Please tell us about legal compliance and fair corporate activities -related initiatives done by the Auditing Departmaent.
The Auditing Department is engaged in various initiatives related to legal compliance and fair corporate activities.
With regard to the internal control reporting system for financial reporting under the Financial Instruments and Exchange Act, the Auditing Department, as the department responsible for evaluating the Group, conducts an evaluation of the effectiveness of the Group's internal control over financial reporting in accordance with relevant laws and internal regulations. The results were audited by our accounting auditors and it was judged to be "appropriate."
Business audits are also focused on auditing the status of compliance with antitrust laws. We pay particular attention to antitrust laws and have established our own Antimonopoly Law Compliance Guidelines. This audit confirms that the Group companies are taking actions that violate antitrust laws.
In addition, in the area of legal compliance, we conduct security export control audits for Group companies to ensure that each company's export control system is properly developed and operated. The Auditing Department attends the Company’s the Security Export Control Committee to conduct internal audits.
From the viewpoint of preventing fraud, we check whether the seals used to indicate the intention of the organization, such as company’s and department’s seal impression, are properly managed and used in the audit of the status of fraud management. At the same time, we confirm the management status of department managers’ individual seals for those who have the authority to permit payment.
In addition, we conduct auditing of the status of operations at Group companies that are not subject to J-SOX. We confirm that each of the subject companies' operations, such as cash and deposit control, purchasing, fixed assets and inventory management, and receivables preservation, are conducted under appropriate internal controls.

3. Please tell us about the details of the system and how to disseminate it within the Company about the Compliance Consultation Office.
The Compliance Consultation Office is the point of contact for consultation and reporting when a problem that is suspected of violating laws, ethics, and company regulations arises or is likely to arise in the course of business. Employees of the Group, including corporate, employees, advisors, part-time staff, and temporary staff, as well as retirees, can use this system. We posted guidance about the Compliance Consultation Office on the intranet. In August 2019, “Compliance Consultation and Reporting Rules” and “Guideline for Compliance Consultation Office” were translated into 14 languages and informed throughout the Group. In addition, in order to respond to the revision of the Whistleblower Protection Act, the Compliance Consultation and Reporting Rules were revised on June 1, 2022. We will re-disseminate the rules to the company.

4.What do you intend to focus on in the future with respect to legal compliance and fair corporate activities?
I feel that each company in the Group has a high level of awareness of compliance. By continuing to conduct steady auditing operations in the future, we hope to support each company in the Group in its commitment to legal compliance. For departments undergoing audits, periodic auditing provides an opportunity to consider compliance with laws and regulations, and we will work to make it a habit to check basic operations in business.