Compliance and Risk Management Structure
The Compliance and Risk Management Council has been established as a subordinate body of the CSR Promotion Committee to promote overall compliance and risk management for the Group. The Council, chaired by Director, Senior Vice President & Executive Officer of Alfresa Holdings Corporation and comprising members selected from the management of Alfresa Holdings Corporation and its Group companies, meets regularly twice a year.
Alfresa Holdings Corporation and its Group companies also hold compliance and risk management council meetings regularly with the aim of promoting compliance and risk management at each company.
Basic Policy and Approach for Compliance
The Alfresa Group defines compliance as “officers and employees complying with laws, internal and external regulations, and social norms, and proactively taking the initiative to fulfill legal responsibilities and ethical responsibilities expected by society.” The Company’s employment regulations stipulate disciplinary action for compliance violations in accordance with their severity. Companies bear legal and ethical responsibility, and if they lose society’s trust their very business foundation may become destabilized, threatening the stability of living and happiness of their employees, as well as their families. To remain trusted by society, the Group’s individual employees are required to take the importance of compliance personally and act with a constant awareness of reliability, safety, and sincerity espoused in the Group’s principles. This kind of behavior will help to create corporate value.
Compliance Training and Awareness-Raising Activities
The Alfresa Group Compliance Handbook lays out the standards of conduct for our people. It is distributed it to all Group officers and employees to ensure they stay familiar with the standards. Group companies also conduct a variety of training and education programs instigated by the members of the Compliance and Risk Management Council.
New Employee Compliance Training [Alfresa Group]
Each year, the Alfresa Group’s “Fresh Members’ Seminar,” which is held for new employees at Group companies, includes a lecture on compliance by an outside lecturer. The lectures cover the approach to compliance and rules about insider trading, and every Group employee strives to understand their social responsibility and to acquire a strong knowledge of compliance.
Safe Driving Initiative [Alfresa Group]
The Alfresa Group uses many vehicles in each of the sale, distribution and delivery processes, and is committed to ensuring compliance with traffic rules and safe driving. The Group has established the strengthening of traffic safety initiatives as a key area in its CSR activities and is implementing a variety of measures Group-wide. In addition to provision of safe driving training sessions and running the Alfresa Group Traffic Safety Campaign, Group companies have introduced various measures to enhance traffic safety, including guidance on safe driving delivered by a telematics* on-vehicle system that is used to monitor driving, and promoting a switch to vehicles fitted with automatic brakes.
An information service that provides vehicle operation status in real time using an on-board device equipped with GPS and telecommunications functions.
Compliance Consulting Offices (Internal Reporting System)
The Group has compliance consulting offices in place as a means for Group employees to consult and make reports. This ensures that violations of laws and corporate ethics are discovered early or prevented.
Compliance consulting offices are set up within the Group companies, and Alfresa Holdings Corporation operates the general compliance consulting office, which is open to consultations from the entire Group. In addition, external hotlines are available at Group companies to make it easier for people at Group companies to make a report. Due consideration is given to the privacy and other human rights of users, with confidentiality ensured. As for people who provide information for the benefit of the public, whistleblowers’ rights are protected and they are dealt with fairly.
Corruption Prevention Initiatives
The Alfresa Group makes thorough efforts to prevent corruption. The Alfresa Group Compliance Handbook prohibits provision of profits to civil servants, etc., also prohibiting the provision of or encouragement to accept anything that could be mistaken for a bribe in Japan or overseas. Furthermore, anticorruption laws in overseas countries may apply to acts of bribery that take place in Japan, and since the Alfresa Group has close relationships with pharmaceuticals manufacturers and suppliers, the Group takes steps to deepen its understanding of such laws and conduct appropriate sales activities. Group companies strive to prevent corruption by holding education and training on preventing corruption, primarily for managers and people responsible for marketing or delivery.
Basic Policy and Approach for Risk Management
The Alfresa Group defines risk as “phenomena that will or may have a negative impact on the Company’s management, and which could occur at an unpredictable time.” To enable timely and accurate management and implementation of measures for various risks, the Group engages in risk management, including measures aimed at preventing risks at ordinary times, and measures for responding after the occurrence of a crisis that has a serious negative impact on the corporate management. The Alfresa Group also holds meetings of the Business Investment Committee, an advisory body to the representative directors, as needed for deliberation of investments to be made by the Group, and submits the matter to the Board of Directors or the Executive Committee in accordance with the Company’s regulations.
In addition to measures taken in response to the Great East Japan Earthquake and the Kumamoto Earthquake, the Group has strengthened its preparedness, based on revised government estimates of damage, for an earthquake with an epicenter directly beneath Tokyo or a Nankai megathrust earthquake. The Alfresa Group focuses on ensuring that every Group company is ready to respond in the event of a disaster, as a Group-wide initiative. For example, Group companies update their regulations and manuals and hold disaster response training events. They also check and secure the environment and emergency stockpiles.
Group companies have established a safety confirmation system and conduct safety confirmation drills regularly.
There are also annual drills for communicating the safety confirmation results of all Group employees via a Group emergency contact network that uses satellite telephone.
Reinforcing the Business Continuity Plan (BCP)
The Alfresa Group has reinforced its BCP in preparation for a large-scale disaster or pandemic. Group companies engaged in the Ethical pharmaceuticals wholesaling business have established a support system that is prepared for a disaster. A nationwide response system is in place so that even if distribution centers or branches in specific areas are affected in a disaster, other locations will be able to step in and continue supplying pharmaceuticals where they are needed. In the area of information systems, disaster recovery* plans are in place. If the Group’s data center becomes damaged, systems can be switched over to a backup data center, ensuring that shared-use mission-critical systems keep functioning. The Group has adopted a new email system that would be able to remain in use in time of disaster, to secure post-disaster communication between Group companies.
- 1 Disaster recovery: Rapid switching of a disaster-damaged computer system to a backup system
The Alfresa Group not only complies with the relevant laws and regulations in order to respond to the requirements of an advanced information society, but has also formulated the Basic Policy on Information Management to establish systems and ensure proper management of the information it possesses as part of its business activities.
Protection of Personal Information
Further Strengthening Information Security Measures
Alfresa System Corporation, which operates, maintains and develops information systems for the Alfresa Group, has acquired ISMS certification (ISO/IEC27001) and works proactively on information security measures. This corporation promotes the standardization and strengthening of security measures Group-wide and raises awareness of information security by offering regular training and other means. Moreover, it conducts questionnaires for all employees twice a year in order to confirm compliance with information security operation rules in an effort to prevent information security incidents. In addition, disaster recovery plans are in place in preparation for a disaster, and the corporation is working to augment recovery systems step by step, starting from mission-critical core systems, then moving to peripheral systems. In order to ensure and maintain the safety of information systems, the corporation monitors information security trends and will make every effort to keep the Group’s information security up to date and thereby enhance the satisfaction level of IT users at the Group.
The Group has compiled the issues relating to business conditions that may have a significant impact on the decisions of investors.
The Alfresa Group is working to strengthen its corporate governance system in order to fulfill its responsibilities to stakeholders by achieving Our Philosophy, Our Vision, and Our Promises, which are set out in the Group’s principles.