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 a campaign 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 compliance 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 the respective businesses 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 FY2025, to strengthen our quality compliance, we continued to promote our ongoing Citizen Group Quality Code of Conduct awareness-raising campaigns. Specifically, our awareness-raising campaign included a variety of activities, such as quality compliance audits at business management companies in Japan, employee training both in Japan and abroad, the display of Quality Code of Conduct posters, and information sharing on the intranet.
In addition, we reviewed our current measures in line with the FY2030 Roadmap based on expert views and the results of general-situation surveys of Group companies. Based on the review results, we launched new measures for FY2025: quality compliance audits, crisis response drills, and ESG risk management initiatives at our overseas business sites.
Specifically, we have begun creating audit checklists based on the general situation of each business, confirming the role the Quality Assurance Department must play in the event of a quality fraud case at each overseas business site, and defining ESG requirements in each business.
Please scroll down to see→
FY2025
FY2026
FY2027
FY2030
Goal
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-sustaining
Realizing autonomous quality compliance systems throughout the Group
KPI Targets
Building 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)
Ensuring that quality compliance systems are 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 FY2025:
Analyzing the current status of quality compliance
Examining the ideal audit system and working on audit standards
Designing crisis response drills
Designing an ESG risk management process
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 and audit departments of the respective Group companies.
Group Quality Compliance Committee Meetings: FY2025 Agenda
Please scroll down to see→
Date
Agenda Items
1st
June 6, 2025
Review of past activities
Cases of quality fraud at other companies
2nd
September 10, 2025
Confirmation of achievements on the FY2024 Roadmap
Explanation of a plan for monitoring the current status of quality compliance risks and relevant initiatives
3rd
January 15, 2026
Results of the monitoring of the current status of quality compliance risks and relevant initiatives
FY2030 Roadmap
4th
March 13, 2026
Revisions to the Group Quality Code of Conduct
Quality Compliance Training
The CITIZEN Group conducts quality compliance training as part of the 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 programs on The CITIZEN Group Quality Code of Conduct for all employees in Japan and Japanese expatriates overseas in FY2025, with the participation of 6,374 employees, an attendance rate of 99.8%.
CITIZEN Group Quality Code of Conduct Awareness-raising Campaign Overseas
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 state of each Group member, such as the attitude they should have toward work. The display of posters 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 our efforts to raise awareness of quality compliance by expanding this action to other sites.
Posters displayed at an overseas manufacturing plant
Efforts to Prevent Cases of Fraud, Including Recurrent Ones
CITIZEN ELECTRONICS CO., LTD. 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 introducing a system for preventing quality fraud and data falsification, the first in the Group to do so, 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 sites, as well as periodical internal quality compliance audits while maintaining the independence of in-house accredited laboratories and the Quality Assurance Department. The company therefore prevents cases of quality fraud, including recurrent ones.
Efforts to Improve Customer Satisfaction
Citizen Watch Co., Ltd., 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 to facilitate timely action. This valuable feedback is further shared across all Business Divisions, 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 posted on the company’s official website. In FY2024, the inquiries Citizen Watch Co., Ltd. received totaled 47,489.
CITIZEN MACHINERY CO., LTD., 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 in which skilled product specialists listen directly to the inquirers to fully comprehend product status, offer them troubleshooting instructions, and arrange for the dispatch of replacement components if needed. When it turns out that repairs are necessary, 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 shared internally under the charge of the Quality Assurance Department, to be used for quality enhancements, including product improvements. The company’s initiatives to elevate customer satisfaction also include producing repair and response manuals in English so that customer support is provided globally and running an exclusive members-only online portal named “alkartsite,” where up-to-date product information, electronic manuals, and instructional videos demonstrating operational and maintenance procedures are available.
Handling of Defects and Complaints
Both Citizen Watch Co., Ltd. and CITIZEN WATCH MANUFACTURING CO., LTD. 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 conduct 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 received complaints are judged to be helpful for product and service enhancements, the companies not only duly address them but also integrate the insights gained from them 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 the president and other executives at Management Committee Meetings or on other occasions. Furthermore, pertinent information is disseminated on the company website through the issuance of “Important Notices.”
Investigation into Defective Products and Corrective Action
Upon receiving a customer inquiry concerning a product defect, CITIZEN MACHINERY CO., LTD. takes appropriate measures tailored to the situation, including dispatching replacement parts and arranging for repair. If the inquiry demands additional measures, an emergency response meeting of pertinent personnel is convened to exchange information and probe the root cause of the issue. This is followed by a recurrence prevention meeting, the reporting of findings to upper management, and corrective action, 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 implements measures to avert the recurrence of similar defects, thereby preventing flawed products from reaching the market. The company is vigilant in monitoring the details and number of process defects to be ready to sufficiently update standard documents and work manuals and improve processes, thereby curtailing the incidence of defects. In the event of a defect, the company swiftly disseminates related information to overseas production sites as well and implements countermeasures there in order to ensure that a uniform quality standard is achieved across all sites globally.
