The JFE Group is enhanching Corporate Governance to achieve sustainable growth and increased corporate value over the medium to long term.
Please review the Corporate Governance pages for more information.
JFE CSR System
JFE contributes to society as a responsible corporate citizen and has made corporate social responsibility (CSR) increasingly fundamental to its business. The Group CSR Council, which was established by JFE Holdings in October 2005 chaired by the company president convenes quarterly to supervise CSR activities and related issues such as compliance, the environment, human resources, safety, disaster prevention, social contributions and countermeasuresagainst organized crime. The JFE Group Compliance Committee, JFE Group Environmental Committee and JFE Group Internal Control Committee are among the internal units that report to the Council.
To ensure that CSR activities are conducted properly, JFE systematically audits environmental management, Antimonopoly Law compliance, expense management, overseas office management, tax law compliance, safety management and disaster prevention.
If an audit reveals a problem, the internal audit departments of JFE Holdings and relevant operating companies share information to support the implementation of corrective measures.
Compliance forms part of the underlying foundation upon which JFE is built. Compliance with laws and ethics is vital to maintaining integrity and soundness in business because it helps to ensure that all members of organization deepen their knowledge and awareness ethics and perform their jobs act accordingly every day. To that end, JFE works continuously to strengthen its compliance systems and procedures.
JFE’s Standards of Business Conduct and Corporate Vision guide employees in the conduct of their daily activities. They also help to strengthen awareness among all JFE Group executives and employees and ensure adherence to corporate ethics.
The Compliance Committee chaired by the president generally convenes every quarter to deliberate basic policies and issues and then supervise their implementation. Each operating company has a similar in-house system for promoting and supervising compliance. In addition, operating companies have introduced a Corporate Ethics Hotline to ensure that crucial information regarding compliance can be communicated directly from the front lines to top management.
Ensuring Thorough Compliance
As part of ongoing efforts to raise compliance awareness, JFE has compiled a Compliance Guidebook for distribution to all employees, including executives. It presents over 100 case studies written in plain language to help employees understand JFE’s standards for complying with laws and regulations, as well as internal rules based on social norms. Contents also cover examples of everyday situations that can require employees to make unclear or confusing decisions, and explanations of how to resolve such problems written by relevant departments and reviewed by attorneys to ensure legal compliance.
JFE conducts compliance training on the Antimonopoly Act, insider-trading restrictions, security export controls, the Construction Business Act, laws against bribery of public officials. Compliance education also is provided specifically for managers and new hires.
Antimonopoly Law Compliance
JFE Steel and JFE Engineering view past violations of the Antimonopoly Law seriously and continue to implement thorough measures to eliminate the possibility of future infringements. The internal audit departments of both companies constantly monitor contact with other companies to avoid Antimonopoly Law violations. They also check to see that initiatives aimed at promoting legal compliance are functioning properly. Audits are regularly conducted at all business locations, including branch offices. Other Group companies also implement compliance initiatives
Basic Policy on Preventing Bribery of Public Official
The bribery of foreign public servants has emerged as a major business risk in the face of rising international awareness of corruption and increasingly severe charges being filed against violators. To address this issue, JFE issued the Group Basic Policy on Preventing Bribery of Public Officials in February 2015 for dissemination throughout the global Group. Operating companies are also developing their own systems to avoid any bribery of foreign public servants
Resisting Organized Crime
The JFE Group Policies for Addressing Antisocial Forces works to ensure sound company management through uniform organization-wide measures under JFE’s compliance system in response to organized crime. In addition, JFE has its own Regulations for Addressing Violence Directed at Companies, including a manual on the initial steps that should be taken in responding to violence targeting companies.
JFE’s Corporate Ethics Hotline helps to ensure that important information regarding compliance can be communicated from the front lines to top management rapidly and accurately. To encourage the active sharing of information, the hotline is operated under rules and regulations that protect people who report information or seek advice. Whistleblowing and requests for advice are regularly reported to full-time Audit & Supervisory Board Members and the operational status of the system is reviewed by the Board of Directors.
Risk Management System
JFE Holdings is responsible for comprehensive risk management in accordance with its Basic Policy for Building Internal Control Systems. The JFE Group CSR Council collects specific information for the purpose of reducing the frequency and impact of risks. The executive officer responsible for risk works to identify potential risks associated with business activities, ethical and regulatory compliance, and the disclosure of financial reports and information. If potential risks are identified, they are assessed to determine if there is a need for further examination or the deployment of countermeasures.
The JFE Group has established the JFE Group Privacy Statement to maintain the appropriate protection of personal information.
JFE’s Information Security Management Regulations help to prevent the improper use or leakage of information within the Group.
Key issues related to information security are deliberated by the JFE Group Information Security Committee to determine Group policy. Based on policies set by the committee, the JFE-Security Integration and Response Team (JFE-SIRT; established in April 2016) formulates and implements information-security measures, performs security audits, offers guidance on responding to incidents and generally enhances Group-wide information-security management.JFE-SIRT joined the Nippon CSIRT Association,
the Japan Electricity Information Sharing and Analysis Center (JE-ISAC) and another external organization to share security-related information with other companies and cooperate in the event of incidents.