Compliance
We enforce compliance as one of our top priorities as part of the Group's CSR activities, based on the Citizen Group Code of Conduct. Taking legal compliance as a starting point, we aim to promote activities that encourage morally and ethically sound practices.
Internal Reporting System
Establishing internal and external hotlines
The Citizen Group has established the Citizen Group Corporate Ethics Hotline in an effort to prevent and quickly identify any legal violations or misconduct stemming from dishonest actions, and to enhance our self-regulating corporate culture. The Internal Reporting System Rules state that the reporting party’s privacy must be respected, that the subject of the report must be given the opportunity to refute claims made against them, and that the reporting party must not be subjected to unfair treatment. In 2008 we also set up an external hotline to allow employees to file reports anonymously. The fiscal 2010 CSR awareness survey shows that around 75% of employees were aware of the Corporate Ethics Hotline. When asked if they would use the Corporate Ethics Hotline, 18% said that they would not use the service, with a further 47% remaining unsure. The most common reason given was “That depends on the case,” followed by “I am not convinced that my privacy would be protected.” With these findings in mind, we will make every effort to further publicize and improve the reliability of our hotline service in the future.
Intellectual Property Management
Intellectual Property Management Structure
Citizen Holdings Co., Ltd. is responsible for formulating intellectual property policies on behalf of the entire Group and putting in place a Groupwide intellectual property management structure. It is through activities such as these that we make every effort to prevent infringements on third-party intellectual property rights, whilst also working to promote distinctive design and technology, protect our own intellectual property, ensure a reasonable level of freedom for our business activities and expand our operations. Moreover, intellectual property department managers from Group companies gather three or four times a year for Group Intellectual Property Project Meetings to manage intellectual property at a Groupwide level.
At each Group company, we share intellectual property information and optimize intellectual property portfolios based on the progress of development themes and business conditions.
In addition, for intellectual property training, we conduct individual training through e-Learning and provide group training in the form of “New Employee Training,” “How to Write Detailed Statements,” “Intellectual Property for Sales and Planning Departments” and “Patent Retrieval System Operating Instructions” and other programs.
Trademark Management
Most operational companies in the Citizen Group develop and sell a wide range of products. While it is possible for the trademarks for each product to be held and managed by each operational company, doing so would make it difficult to monitor trademarks across the Citizen Group as a whole, and would not lead to enhanced brand power across the entire Citizen Group.
Given this, with respect to trademarks for the Citizen corporate brand and product brands related to finished product businesses, Citizen Holdings engages in the unified management of trademarks by filing the appropriate applications and registering rights after investigating aspects such as the status of rights held by others. Citizen Holdings also works in conjunction with operational companies in efforts to enhance the Citizen Brand.
In addition, as a part of efforts to enhance brand power, attention is also given to anti-counterfeiting measures. Citizen Holdings Co., Ltd. believes that allowing counterfeit manufacturers sell inferior products bearing the CITIZEN brand and cause inconvenience to customers not only erodes credibility among its customers but leads to a deterioration of the Citizen brand. Given this, Citizen Holdings is actively involved in exposing counterfeit good factories and sales outlets, and in the implementation of import bans through the customs services of various countries.
Efforts at Each Group Company
Retaining Privacy Mark Certification
After obtaining the Privacy Mark in 2005, Tokyo Bijutsu Co., Ltd. has strived to enhance its credibility among customers and business partners. When obtaining Privacy Mark certification, we not only invest in equipment to enhance security but conduct training to ensure that all employees, part-time and casual staff included, are thoroughly familiar with its requirements. This has also lead to increased awareness of risk management and compliance. Moving forward, Tokyo Bijutsu will endeavor to further enhance its information security as a Privacy Mark-certified company.
IT Internal Audits
Citizen Seimitsu Co., Ltd. is promoting the strengthening of its information security management system as it strives to become a company that enjoys the trust of customers. To address the requirements for frameworks and mechanisms able to support the fully-fledged operation of information system regulations as well as periodic operational monitoring of the information security levels demanded by customers and public institutions, we check the operating status of regulations related to information systems on a periodic basis and conduct IT internal audits. The second audit conducted in fiscal 2010 showed that the understanding of regulations and the execution of tasks based on the regulations had improved compared with fiscal 2009. Based on IT internal audits, we will continue to ensure the steady and thorough operation of related regulations and review regulations in light of circumstances.
IT Asset Monitoring
Citizen Seimitsu Co., Ltd. has established Information System Usage Standards to serve as company-wide standards governing the use of IT equipment. The standards include provisions to prevent the improper use of software. Users apply to the Information System Department for permission to use software necessary for business and the department confirms the details of usage and necessity of the software concerned, and grants permission for installation after confirming it does not constitute improper use. We have also installed asset monitoring software on all PCs and strive to ensure information security by conducting periodic checks of unauthorized software installations by users, the improper use of software and the installation of software that poses problems to information security.
Setting up a dedicated CSR compliance webpage
In fiscal 2007, Citizen Electronics Co., Ltd. set up and launched a dedicated CSR compliance webpage on the Group intranet. In addition to the 9 domestic and overseas companies under the umbrella of Citizen Electronics, the webpage features details of Citizen Holdings' corporate philosophy, management, environmental and quality policies and annual CSR targets and is intended to establish a stronger sense of solidarity within the Group. Employees can also access the internal reporting system and Corporate Ethics Hotline via the same page.
