Corporate Governance and Risk Management

Corporate Governance

As a member of the Kyocera Group, we have established the following system of corporate governance and internal controls to ensure that the execution of their duties by directors complies with all laws and regulations as well as its articles of incorporation, and to achieve sound, fair, and highly transparent corporate governance based on the Kyocera Philosophy and Management Rationale.

● Corporate Governance System

Internal Control System

We have established a system of internal controls to ensure that the directors who execute our operations adequately adhere to our management rationale and master plan as they aim to achieve our management rationale.

Management Committee

Important matters are deliberated on by the Management Committee, which consists of directors and the heads of relevant departments, in order to ensure operations are performed appropriately.

Risk Management System

● Risk Management System

In order to respond to diversifying internal and external risks, we have established a risk management system in accordance with the "Kyocera Group Basic Policy on Risk Management", and are working on risk prediction and prevention as well as the minimization of losses when risks arise.
Working under the supervision of the president, who is the chief executive officer, the head of the Corporate General Affairs Division oversees risk management while the Risk Management Department and divisions responsible for various types of risks conduct risk management activities. In the event that a serious incident occurs or is likely to occur, the Risk Management Department and divisions responsible for various types of risks work together to quickly respond to the incident.
Additionally, we have established internal rules, including management rules regarding important laws and regulations as well as a crisis management manual that stipulates measures to be taken in the event of an emergency, and have made these rules and regulations available to all employees.

Kyocera Group Basic Policy on Risk Management

1. 1. In accordance with assurance of compliance and the spirit of the Kyocera Philosophy, the group will consider what is the right conduct as a human being and act based on the value standards.
2. 2. In accordance with the spirit of the Kyocera Philosophy, the group will accept "the highest priority is to ensure safety of bodies and lives of people," deal with crisis, and for convergence of crisis, cooperate among employees as a unit to minimize loss, recover the damage, and make efforts to prevent reoccurrences, thereby attempting to remove or mitigate impediments to the interests of each stakeholder (the interested party), including customers, business partners, shareholders/investors, and the community.
3. 3. The Kyocera Group will attempt to continuously develop its business through implementing risk management.
4. 4. The group will act with its social mission to stably supply products and services helpful to the progress and development of society.

Business Continuity Plan (BCP)

We are strengthening our business continuity initiatives along with ongoing disaster management activities to ensure that we can continue to supply products and services to customers in the event of an emergency. In Japan, we have strengthened our initial response system in the event of a major earthquake or disaster and have built a system to ensure a stable supply of products and services even when production is affected by power outages or damage to production facilities. We conduct annual BCP drills at the Hirakata(Osaka) and Tamaki(Mie) Plants, covering everything from initial response to recovery, so that we can take appropriate action in the event of a large-scale earthquake.

Legal Compliance

As a member of the Kyocera Group, we adhere to the "Kyocera Compliance Statement" and "Kyocera Employee's Action Guideline" as our code of conduct. To ensure compliance with domestic and foreign laws and regulations, we designate a department to be in charge of relevant laws and regulations, inform employees immediately of the enactment or revision of laws and regulations, and conduct regular legal audits.

• Keeping Up-to-date with Legal Information
  The department in charge of laws and regulations reviews the provisions of new and revised laws and regulations in order to ensure thorough legal compliance, reflects them in the management rules of each department, and keeps everyone up-to-date.
• Legal Audits
  The internal audit department conducts regular compliance audits of each department in accordance with legal requirements to maintain and improve the compliance framework.

Security Export Control and Trade Control System

We have established a system that conforms to the "Foreign Exchange and Foreign Trade Act", the "Customs Act", and other laws and regulations in order to ensure compliance with laws and regulations related to import and export transactions. The "Kyocera Document Solutions Export Control Regulations" ensure secure export control as required by the "Foreign Exchange and Foreign Trade Act". We have acquired "Specified Exporter" and "Specified Importer" authorization from customs and carry out import and export processes based on control procedures associated with trade-related operations. We conduct internal audits on secure export control and trade control to ensure that the system is being properly maintained.

Personal Information Protection

Part of our social responsibility is to ensure the protection of personal information obtained from stakeholders through our business activities. We have established a basic privacy policy, which specifies how we use personal information and provides contact information for inquiries. We provide employees with training on the handling of personal information to ensure that it is appropriately managed. We also have a system for managing specific personal information (My Number).

Preventing Insider Trading

We have an insider trading monitoring system and ensure all employees are aware about preventing insider trading. We have also established "Rules to Prevent Insider Trading", which requires the maintenance of an internal information management system and restricts the buying and selling of stocks. In order to raise employee awareness, a "Guide to Preventing Insider Trading" has been published and made available via the internal web portal.

Efforts to Exclude Antisocial Forces

The "Kyocera Employee's Action Guideline", which serves as a code of conduct for employees in their daily work, clearly states, "We will take a resolute stance against antisocial forces in accordance with the law", and ensure that this policy is strictly enforced. We also have a clause in our contracts with customers and suppliers to exclude antisocial forces.

Compliance Education

Every year we provide compliance education to new employees, while each department provides education on relevant laws and regulations.

Whistleblower System

We maintain an internal whistleblower system that allows employees to report any violation or potential violation of laws and internal regulations related to human rights, labor, safety and health, the environment, and fair trade as well as to ask questions or seek consultation. Upon receiving a report from an employee by phone or e-mail, our full-time Audit & Supervisory Board members and the head of the Corporate General Affairs Division will inform him or her of our approach to the protection of personal privacy, etc. and work with the relevant departments to conduct investigations and verification, take corrective measures, and prevent any recurrence.
We also accept the inquiry from our business partners from the below link.

Inquiry Form

Anti-bribery Initiatives

As a member of the Kyocera Group, we are working to eradicate corruption by prohibiting activities that deviate from general good business practices, including forms of bribery, such those involving the giving or acceptance of excessive gifts or entertainment, in accordance with the "Kyocera Group Basic Policy on Anti-Corruption".

Kyocera Group Basic Policy on Anti-Corruption

Internal Auditing

Kyocera's internal audit department conducts internal audits of our Group companies and evaluates their internal control frameworks and systems with an aim of improving their internal controls. Annual audits of internal controls are also conducted by external auditors.