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Highly Effective and Transparent Global CSR Management
Using Local Initiatives in Group Governance
The Hitachi Group is committed to ensuring integrity and complete transparency in business operations. In fiscal 2003, we adopted the committee system under the Companies Act of Japan as our governance structure and established three whistle-blowing systems so that employees can directly report to compliance officers, an outside attorney, or to our board of directors. In fiscal 2008, we introduced the Hitachi Global Compliance Program, an integrated system that includes audits and education, to prevent our senior executives and employees from bribery of public officials in and outside Japan. In fiscal 2011, we translated the Hitachi Group Codes of Conduct into 17 languages to share them with Group companies worldwide as part of our drive to lock in effective, transparent corporate governance with a strong awareness of global standards.
Fiscal 2012 marks a decade since we first launched drive to strengthen governance. To enhance our governance system, we chose the majority of our board of directors from outside the Company and increased non-Japanese directors from one to three people. We will also focus on efficient Group governance to boost global competitiveness. This includes sharing management duties. Particularly, in the emerging countries where we expect strong growth, we are developing core local human resources and partnerships with outside institutions to improve efficiency and transparency. Another challenge is to improve local initiatives. In April 2012, we created the position of Chief Executive Officer for Asia Pacific. We are determined to develop local strategies and centralize procurement and other functions for speedier and more locally oriented business operations.
In 2011, Japan and Thailand suffered severe disasters that caused materially adverse effects worldwide. I believe that drawing on the lessons learned from these experiences and focusing our combined strength on Social Innovation Business will create safer, more comfortable urban areas around the world. That will be a real contribution for recovery.
The Hitachi Group will continue to focus on local initiatives and reinforce global governance striving for global-standard CSR management.
Senior Vice President and Executive Officer, in charge of Human Capital, Government & External Relations and Corporate Auditing, General Manager of Legal and Communications Group and Compliance Division and Deputy General Manager of Hitachi Group Headquarters for Post-earthquake Reconstruction and Redevelopment, Hitachi, Ltd.