Here we outline our four businesses, through which we contribute widely to the lives of people around the world.
Machine tools
Citizen began production of machine tools in 1936, utilizing the technologies and know-how developed through the manufacture of watch parts. Our products contribute to the development of manufacturing industries all over the world.
About Us
More than a century since it was founded in 1918 with the desire to produce Japanese-made watches, the CITIZEN Group has evolved into a corporate entity engaged in a wide range of businesses.
CITIZEN's corporate philosophy, "Loved by citizens, working for citizens" is to
deeply contribute to the lives of people around the world through the manufacturing of products that are loved and trusted by citizens.
Message From President & CEO
Crafting a new tomorrow Towards sustainable value creation
The CITIZEN Group has been conducting campaigns to raise employee awareness of The CITIZEN Group Quality Code of Conduct, which was formulated based on Article 2 of The CITIZEN Group Code of Conduct and in consideration of the situation of each business through the leadership of the Group Quality Compliance Committee, established in FY2018. These efforts aim to ensure a shared understanding of quality compliance, including at overseas bases.
The Group Quality Compliance Committee comprises executives responsible for quality at the respective CITIZEN Group companies and is dedicated to promoting the permeation of quality compliance awareness and practices from the perspective of The CITIZEN Group as a whole, transcending individual business units. The Committee also drives activities to respond to requests from stakeholders in various business domains while incorporating the perspective of enhancing the effectiveness of the internal reporting system, as well as ESG/SDGs perspectives.
In FY2022, the Committee included the managers of quality assurance departments of the respective Group companies as observers. By engaging in discussions that incorporate both the Group perspective and the operational perspective of each business unit, the Committee works to ensure quality compliance, which is at the core of quality management, thereby establishing an organizational culture of zero quality scandals.
Organizational Chart of the Quality Compliance Committee
Progress on the Quality Compliance Roadmap
In FY2024, efforts to strengthen quality compliance were successful in achieving the target of running two in-house campaigns to disseminate The CITIZEN Group Quality Code of Conduct. The CITIZEN Group constantly runs campaigns to promote awareness of the Group Quality Code of Conduct through activities such as providing training for employees in Japan and overseas, displaying posters for the Group Quality Code of Conduct at overseas sites, and disseminating the information through the company intranet.
In FY2024, the final year of the Medium-term Management Plan, the Group Quality Compliance Committee’s activities to date underwent overall review, and the FY2030 roadmap was revised. Prior to the revision of the FY2030 roadmap, a general questionnaire survey was conducted of the Group companies to ensure that the revised roadmap would take into consideration the current condition of the respective Group companies. The FY2030 roadmap has therefore been revised to reflect the current condition identified through the survey, as well as incorporating the views of external experts.
As a new initiative starting in FY2025, we plan to scale out the measures that we have so far implemented mainly at our business sites in Japan to our overseas sites.
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FY2025
FY2026
FY2027
FY2030
Targets
Establishing the foundation for quality compliance systems at overseas sites
Establishing quality compliance systems at overseas sites
Ensuring that the quality compliance systems at overseas sites are self-sustained
Realizing autonomous quality compliance systems throughout the Group
KPIs
Establishing quality compliance audit systems at overseas sites (creating audit standards and checklists)
Percentage of major sites in Japan* where quality compliance crisis drills are conducted: 70%
Percentage of major overseas sites where quality compliance audits are conducted: 70%
Percentage of major overseas sites where quality compliance crisis drills are conducted: 70%
Percentage of major overseas sites where quality compliance audits are conducted: 100%
Percentage of major overseas sites where quality compliance crisis drills are conducted: 100%
Percentage of major Group sites where quality compliance audits are conducted: 100%
Percentage of sites, among all major sites, where quality compliance crisis drills are conducted: 100%
Measures
Providing e-learning programs (in Chinese and English)
Developing the foundation for quality compliance systems at overseas sites
Conducting quality compliance crisis drills at major sites in Japan* (facilitating employees’ understanding of the impact of violations of the Quality Code of Conduct)
Building a system to identify quality compliance risks related to ESG requirements
Providing e-learning programs (in Thai)
Conducting quality compliance crisis drills at major overseas sites
Establishing the procedure for addressing quality compliance risks related to ESG requirements
Providing e-learning programs (in Vietnamese)
Making quality compliance systems firmly rooted at overseas sites
Establishing a global quality compliance reporting system
Creating crisis response manuals for overseas sites
Establishing a management system for ESG-related quality compliance risks
Ensuring that autonomous quality compliance activities are conducted at all major sites
Establishing a global quality compliance system
Establishing a global quality compliance crisis response system
Establishing a preventive management system for quality compliance risks related to ESG requirements
* Major sites in Japan: To be determined and selected on the basis of each risk
Initiatives to Strengthen Quality Compliance
Initiatives of the Group Quality Compliance Committee
The Group Quality Compliance Committee, whose primary role is to address compliance risks related to quality, conducted the following activities in FY2024:
Conducting a general survey on quality compliance (confirming risks and the status of the relevant initiatives)
Creating quality compliance training materials (English and Chinese versions)
Conducting quality compliance audits
Discussing the 2030 roadmap with external experts
The Committee plays a key role in the Group’s quality assurance efforts and promotes the strengthening and improvement of quality compliance, including group audits and training, in cooperation with the quality departments and audit departments of the respective Group companies.
Group Quality Compliance Committee Meetings: FY2024 Agenda
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Date
Activities
1st
June 12, 2024
Reviewing past activities
Discussing other companies’ quality fraud cases
2nd
October 3, 2024
Confirming the achievement status of the FY2024 roadmap
Receiving an explanation of a plan for monitoring the current status of quality compliance risks and relevant initiatives
3rd
January 20, 2025
Sharing the results of the monitoring of the current status of quality compliance risks and relevant initiatives
Discussing the 2030 roadmap
4th
March 12, 2025
Deliberating and agreeing on the proposed FY2025–2027 quality compliance roadmap
2025 GQC Committee Plan (draft)
Sharing e-learning content (English version)
Quality Compliance Training
The CITIZEN Group conducts quality compliance training as part of training for new employees and newly appointed directors to raise quality compliance awareness throughout the Group. In addition, to cultivate a heightened sense of quality compliance across its workforce, the Group provided e-learning training on The CITIZEN Group Quality Code of Conduct for all employees in Japan and Japanese expatriates overseas in FY2024, achieving an attendance of 99.8%, 6,214 employees.
Overseas Deployment of The CITIZEN Group Quality Code of Conduct
In order to raise awareness of quality compliance overseas, in FY2021, we expanded our action of displaying posters on The CITIZEN Group Quality Code of Conduct, which had been done at our sites in China, to our manufacturing plants in Thailand, Vietnam, and the Philippines. The CITIZEN Group Quality Code of Conduct includes provisions for not only quality maintenance initiatives but also the ideal attitudes a member of the Group should have toward work and other matters. The poster display has been well received by our overseas employees as it makes them aware that they are also members of the Group and provides them with emotional support. We will continue to raise awareness of quality compliance by expanding this action to other sites.
Posters displayed at an overseas manufacturing plant
Efforts to Prevent Fraud Cases, Including Recurrent Ones
CITIZEN ELECTRONICS is working to strengthen quality compliance by conducting audits from a quality compliance perspective while practicing regular personnel rotation, which encompasses department heads as well, and pioneering the introduction of a system into the Group to prevent quality fraud and data falsification, thereby nipping fraud in the bud and curbing it.
In addition, to maintain and further enhance quality compliance, the company also continues to conduct regular quality and data monitoring at its business sites, including overseas ones, and periodical internal quality compliance audits while constantly ensuring the independence of in-house accredited laboratories and the Quality Assurance Department. The company therefore prevents quality fraud cases, including recurrent ones.
Efforts to Improve Customer Satisfaction
CITIZEN WATCH, a manufacturer of various products catering to the general public, has instituted a dedicated inquiry desk to promptly and genuinely address customer inquiries, consultation requests, and grievances. This initiative is geared toward elevating customer satisfaction. Noteworthy insights and issues communicated by customers are swiftly conveyed to top-tier management, facilitating timely action. This valuable feedback is further shared across all business departments, paving the way for refinements in products and enhancements in services.
In the event of severe incidents necessitating immediate product repair or replacement, notifications will be promptly disseminated on the company’s official website. In FY2024, the inquiries CITIZEN WATCH received totaled 47,489.
[Case Study] CITIZEN MACHINERY Initiatives
CITIZEN MACHINERY, a precision machine tool manufacturer, conducts surveys of customers who have introduced the company’s products. The aim is to gain insights into product usability and seek requests for enhancement. To respond to inquiries on malfunctions or other issues, the company has established a customer support system with skilled product specialists fully comprehending product status, offering troubleshooting instructions, and arranging for the dispatch of replacement components if needed. Should repairs be needed, the company promptly arranges for repairers to visit the inquirers. Through these measures, the company is committed to swiftly and effectively addressing concerns, minimizing downtime, and mitigating any disruptions to the customers’ business operations.
Customer inquiries are channeled internally and disseminated by the quality assurance departments, driving quality enhancements and influencing product improvements. The company has produced repair and response manuals in English, ensuring comprehensive global support. Furthermore, efforts to elevate customer satisfaction are evident through the provision of an exclusive members-only online portal named "alkartsite." Within this platform, members gain access to up-to-date product information, electronic manuals, and instructional videos demonstrating operational and maintenance procedures.
Handling of Defects and Complaints
Both CITIZEN WATCH and CITIZEN WATCH MANUFACTURING have devised original quality manuals and are implementing Quality Management System (QMS) initiatives aligned with ISO 9001 requirements. The primary objective of these manuals is to ensure reliable quality management, full implementation of the quality policy, and compliance with The CITIZEN Group Quality Code of Conduct across both companies. Additionally, these two companies engage in an annual internal audit to validate the efficacy of their QMS initiatives.
Customer complaints are addressed in strict accordance with the Market Complaint Handling Standard and the Product Incident Response Standard. When complaints are received that carry the potential to drive product and service enhancements, the companies not only duly address them but also integrate the insights into the Quality Standards by making additions or revisions thereto. Swift action is taken when product quality complaints are filed. For severe incidents, a comprehensive array of measures is deployed, including reporting to the Consumer Affairs Agency and the National Institute of Technology and Evaluation (NITE), as well as to senior leadership, including the president, at Management Committee Meetings or on other occasions. Furthermore, pertinent information is disseminated on the company website by issuing "Important Notices."
Investigation into and Corrective Action for Defective Products
Upon receiving a customer inquiry concerning a product defect, CITIZEN MACHINERY takes appropriate measures tailored to the situation, including dispatching replacement parts and arranging for repair. If the inquiry demands a measure, an emergency response meeting convenes, involving pertinent personnel to exchange information and probe the root cause of the issue. This will be followed by a recurrence prevention meeting, reporting of findings to upper management, and corrective actions, such as product improvements.
Furthermore, the company has established a quantitative confirmation system to tally the number of inquiries and complaints received. This system acts as a basis for remedial measures.
In the event of a process defect being internally identified, the company initiates strategies to avert future occurrences and ensure that flawed products do not reach the market. The details and number of process defects are vigilantly monitored, which enables sufficient updates of standard documents and work manuals, as well as process improvements, thereby helping to curtail the incidence of defects. In the event of a defect, the company swiftly disseminates related information to overseas production sites and implements countermeasures in order to ensure that a uniform quality standard is achieved across all sites globally.
