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.
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. In our FY2011 CSR Awareness Survey, 76% of employees responded by saying that they were aware of the Corporate Ethics Hotline. When ask whether they would use it, 36% said that they would, while 18% said that they wouldn't, and 46% didn't know. The primary reason, given by 24%, was that they were uneasy about confidentiality being maintained. Based on these results, we will continue to make the Corporate Ethics Hotline more widely known and make efforts to increase employees' trust.
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.
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.