Thorough Compliance

Compliance

Basic concept

The CITIZEN Group enforces compliance as one of its 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 encourage actions based on moral and ethical values.

Internal Reporting System

Establishing internal and external contacts

The CITIZEN Group has established the “CITIZEN Group Corporate Ethics Contacts” 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. We also set up an external contact office to allow employees to file reports anonymously. Our annual survey of employee CSR awareness indicates that awareness of the Corporate Ethics Contacts has increased, but many respondents say that they feel uncertain about confidentiality being maintained. In response to this result, we will continue in its efforts to raise awareness of and confidence in the ethics contacts.

Change in the number of internal reporting incidents

Intellectual Property Strategy

Intellectual Property-Related Activities That Secure a Competitive Advantage for Our Business

The CITIZEN Group respects the intellectual property rights of other companies and makes efforts so as not to infringe upon them. Moreover, we acquire intellectual property rights for our proprietary core technologies and peripheral technologies, and work to establish barriers to deter entry by our competitors. At the same time, we take strict measures to counter infringement by third parties.
The most important aspect of our intellectual property-related activities is having the planning, development, and intellectual property departments engage in efforts as one department. From the initial planning stage, if another company already has a barrier in place to prevent other companies from acquiring intellectual property rights, the Intellectual Property Department makes the situation known early on, allowing us to move the development of an idea or technology in a different direction. In other words, by being able to switch the direction of development at an early stage, we are able to increase the possibility to secure our advantageous intellectual property rights.
To continue to be successful in our intellectual property-related activities, we will work to swiftly establish a system that further enhances the quality of methods to provide information on intellectual properties.

United Intellectual Property-Related Activities by the Planning, Development, and Intellectual Property Departments
United Intellectual Property-Related Activities by the Planning, Development, and Intellectual Property Departments

Intellectual property management structure

CITIZEN WATCH has high regard and respect for intellectual property rights, such rights as patent, utility model, design, and trademark. We acquire intellectual property rights in accordance with stipulated procedures and take care not to infringe on the intellectual property rights of others.
In addition, meetings of Intellectual Property Department heads from Group companies are held to tackle key intellectual property issues in the CITIZEN WATCH mid-term management plan as a Group and promote unified intellectual property-related activities. Each business optimizes intellectual property portfolios based on the progress of development themes and business circumstances.

Strengthening measures against counterfeit

CITIZEN WATCH is committed to taking measures against counterfeit. Disregarding counterfeit of CITIZEN products not only harms the CITIZEN brand and damages social credibility, but also runs the risk of customers to mistakenly purchase counterfeit devoid of CITIZEN quality as CITIZEN products.
Therefore, we work with public organizations in each country to issue warnings and expose manufacturers, distributors, and sellers of counterfeit based on legal grounds, as well as investigate and prohibit sales of counterfeit on major online shops. We also strive to eliminate counterfeit by prohibiting their import and export at customs in various countries and regions.

Security Trade Controls

The CITIZEN Group has established the “CITIZEN Group Rules for Security Trade Control” to provide reliable and secure trade management within the Group. We have also established “the CITIZEN Group Security Trade Control Committee,” comprising CITIZEN WATCH and operating subsidiaries. This committee provides guidance, education, and information to Group companies and carries out audits.

Measures by CITIZEN MACHINERY

CITIZEN MACHINERY, takes measures to prevent improper export of industrial machineries and their improper resale or re-export overseas in order to ensure compliance with “the Foreign Exchange and Foreign Trade Control Law.” We has continued to reinforce export controls by preventing the improper use of industrial machineries with measures such as the installation of relocation detection functions as a standard feature on all products to render equipment inoperable in the event of unauthorized relocation.

Information Security

The CITIZEN Group has used a mechanism centered on the Information Security Committee to formulate, deploy, and provide training on information security. In FY2015, to respond to My Number regulations, we enacted internal rules concerning the protection of specific personal information, reviewed procedures, updated information systems, and carried out training for Group employees. Additionally, we have established the Group Information Governance Committee to integrate and further promote all activities regarding the protection of personal information, trade secret management, and information security, which were previously handled by different committees.
For our actual information system environment, the use of a data center and of cloud services strengthens the information system against accidents and disasters, creating a safe and reliable IT infrastructure that also contributes to reductions in energy consumption and CO2 emissions.

Continued Acquisition of PrivacyMark

TOKYO BIJUTSU a publisher of art and other books, acquired rights to use the PrivacyMark* in 2007 from the perspective of protecting personal information and raising confidence in clients. We renewed its PrivacyMark certification in March 2017 for the fifth time. Education concerning the protection of personal information is periodically conducted for all employees including part-timers, and the results of tests used to confirm the effects of the training indicate that a strong awareness concerning the protection of personal information has spread among the workforce. We are committed to bolstering its information security including the handling of confidential information in the future.
*PrivacyMark
PrivacyMark System assesses private enterprises that maintain systems for the appropriate handling of personal information, and grants the use of PrivacyMark for those who meet certain standards

Handling anti-social forces

The CITIZEN Group recognizes that connections to anti-social forces significantly impairs social credibility‘ in the Group and has a grave impact on the survival. Therefore, our fundamental policy is to take a firm stand against demands for unjust favors or the like from anti-social forces and organizations, and without exception to refrain from any relationships with anti-social forces.
In addition, we maintain and reinforce systems that block relations with anti-social forces through actions such as promoting the adoption of an article regarding the exclusion of organized crime groups in the various contracts into which Group companies enter. Furthermore, we, in a regular basis, partner with external organizations such as the police and regional companies to promote activities to eradicate anti-social forces.