At the Fujifilm Group, the following four steps have been implemented in the STPD (See-Think-Plan-Do) cycle in the drive to maintain and increase awareness of employees’ compliance.
For details of our approach to STPD, please refer to Sustainability Report “4.5.2-1. Human resource development programs”.
The Fujifilm Group has set up an ESG Committee chaired by the president of Fujifilm Holdings, with the director responsible for ESG serving as deputy chairperson. The Committee deliberates and makes decisions on priority issues related to risk management and ESG.
The activities of the Committee are reported to the Board of Directors, which in turn monitors and assures the effectiveness of risk management for the entire Group. The Audit & Supervisory Board conducts audits to ensure that the internal control systems are functioning appropriately.
The Fujifilm Group appoints officers in charge of compliance and risk management at each operating company to promote risk management for each business activity, and implements a variety of measures to establish an “open, fair and clear” corporate culture throughout the Group.
We have formulated the Fujifilm Group Charter for Corporate Behavior and Code of Conduct as the basic policies of the corporate activities. With these policies, we strive to ensure our activities to be carried out in compliance with laws and social ethics, as well as to communicate the priority of compliance in business operations to all employees of the Fujifilm Group through Compliance Statement.
- Charter for Corporate Behavior
Document defining the corporate philosophy and principles that are to be regarded as important for the entire Fujifilm Group and to be complied with by all Group companies and their employees.
- Code of Conduct
Document establishing what action each employee should take in their daily operations when implementing the Fujifilm Group’s business activities.
The Fujifilm Group employs Risk Management Regulations that specify the group-wide basic policy and risk management system. Based on these regulations, we identify the tasks required to counter various risks related to our business and are fully prepared to make appropriate responses in the event of a critical incident.
The Fujifilm Group has identified 68 items as risks that are likely to have a significant impact on the business management and has organized them into five areas: strategy risks, financial and taxation risks, operation risks, natural disasters, and climate change. Each risk has been evaluated quantitatively based on the level of the impact multiplied by the probability of occurrence, as well as from the standpoint of respect for human rights and economic security assurance.
Priority risks that require preferential action are decided by the ESG Committee, and the action status on these risks is reported to the Board of Directors semiannually.
We recognize that the following major risks might affect our financial condition and the results of our business operations.
On the page for Risks on business. etc. of the Yuka Shoken Hokokusho, in addition to the following items, economic risks such as loss of business opportunities are described.
| Risk Items | Status of Action |
|---|---|
| Large-scale natural disasters (including eruption of Mt. Fuji) | Risk assessment, monitoring and BCP development have been conducted for each business site and supply chain. Reinforcing activities for an early recovery and reduction of disaster risks for BCP. |
| Information security (cyberattacks, confidential data leakage & personal information leakage) | Reinforcing measures against cyberattacks, installation of sensors to monitor the behavior of PCs, servers and development of a global scale security surveillance centers have been completed. |
| Climate change risks | Low-carbon investments are made by reducing CO2 emissions in the product life cycle, developing manufacturing methods with low environmental impact and the internal carbon pricing scheme. |
| Reinforcement of chemical substances management | Strict regulation requirements are likely to lead to prohibition of the use of existing raw materials. We recognize the PFAS control risks and plan to minimize the impact by developing substitute or alternative materials. |
| Corruption and bribery | Due to the strict restrictions and the government approval required in the healthcare business, corruption poses a high risk. Preventive measures are being strengthened, chiefly through employee education and monitoring middlemen through outside vendors. |
| Fires and accidents | Knowledge and skills on handling chemical substances and facility safety are employing to implement measures to prevent fires and explosions. Proceeding with comprehensive awareness raising of safety first practices, and reducing fire risks through fire risk assessments for production facilities and working procedures. |
| Risks related to use of AI | Promoting AI-related employee education and organizing an AI utilization system, taking account of the following major AI risks: lower competence due to delays in the use of AI, discrimination and prejudice caused by AI decision-making, and delay in legal compliance. |
| Rising prices and shortfalls in raw and other materials | Procurement from multiple origins for raw and other materials used in priority businesses and products. Also, centralizing the data for supply chain visualization to ensure a prompt initial response to an emergency. |
| Pandemic and infectious diseases | To reduce the impact of infectious diseases spreading through the business, each organization has developed its own BCP for comprehensive prevention of infection within the organization. |
| Fraud by executive officers or employees | Fraud is prevented through the development and appropriate implementation of internal control. Monitoring is also carried out for early detection and prevention. |
| Geopolitical risks | The manufacturing, development and marketing sites of the Group, as well as our suppliers, are distributed across various countries. The latest information on conditions is collected, and instructions on employee safety, asset protection and economic activities decided as part of the risk management system. The instructions are delivered promptly to minimize damage. |
| Problems with product and quality | In the healthcare business, problems with product quality pose risks that lead to customers experiencing health hazards. Strengthening audits regarding quality assurance. |
| CSR risks on supply chains | CSR risks on supply chains (human rights infringements, issues of occupational safety and health, conflict minerals, modern slavery, and forced labor violations) lead to supply disruptions and reputational risks. Promoting risk reduction activities through awareness of the code of conduct, self-checks and onsite visits. |
| Trade and commerce risks | In response to the U.S. tariffs, monitoring their movements and minimizing any group-wide negative impact by applying timely and appropriate measures, such as reviewing supply chains, further reducing costs, and reviewing product and pricing strategies. |
Any crisis that takes place in a Group company is handled by the Compliance and Risk Management Structure and in accordance with our risk management regulations. When found, it is reported to each operating company and ESG Division of FUJIFILM Holdings, and at the same time addressed swiftly to prevent further propagation of the risk.
Incidents that may lead to serious crises are immediately reported to the General Risk Management Committee, which is subcommittee of the ESG Committee, and the response policy is discussed and decided.
Serving as Secretariat, the ESG Division of FUJIFILM Holdings reports incidents received through our operating companies to the ESG Committee. At the same time, the Division monitors implementation of countermeasures for the reported incidents in the operating company, as well as requiring prevention measures to be undertaken by other operating companies to ensure group-wide protection from any recurrence.
The ESG Division provides overviews of incidents and detailed reports of more serious incidents to the ESG Committee. Further, the Division provides a quarterly summary of such information to the Directors and Auditors to secure the efficacy of the group-wide risk management.
Since 1997, the Fujifilm Group has been committed to the establishment and enhancement of compliance and risk management frameworks at each group company. After introducing a holding company system in 2006, we have been actively implementing initiatives for both domestic and overseas sites at the entire group level.
- Providing education on the Fujifilm Group Charter for Corporate Behavior and Code of Conduct for all executive officers and employees at a global level and obtaining Declaration of Compliance
- Providing education on healthcare-specific laws and regulations for employees working in the Healthcare business in Japan
- Providing anti-corruption education in compliance with laws and regulations in each country at a global level
- Providing training in order to prevent information security incidents and violations related to handling of personal information. Conducting suspicious e-mail training for all executive officers and employees in Japan
- Implementation of initial response training for cyber incidents with the participation of executive officers and division heads responsible for information security
- Implementation of briefing sessions for risk managers in each organization in Japan on the role of risk managers and priority risks
- Continued strengthening of overseas governance since FY2024, to ensure thorough implementation of charters, regulations, and policies at overseas subsidiaries (Fujifilm Group)
- Revision of “AI Policy”(Fujifilm Group)