Risk and Compliance

Risk Prevention Measures

Top Priority Risk Management

In each Group company and division, we are specifying top priority risks, based on risk models and procedure documents, and steadily implementing measures and controls for risk.
In addition to sharing targets for top priority risk measures and management as well as target achievement status, the Risk & Compliance Committee examines and supports appropriate measures in response to newly materializing risks and risks that are judged likely to have a major impact on the Group as a whole as well as in response to other risks as necessary.

Risk Categories

(1) Business (2) Product Quality (3) Production/Maintenance (4) Product Safety (5) Personnel
(6) Information Management (7) Safety/Health (8) Sales (9) Capital (10) Compliance

Concerning the cases not yet achieved of the top priority risk cases specified at the Mitsui Chemicals parent company in fiscal 2015, the Company took measures in response for each and shared the content of those measures at the Risk & Compliance Committee. In addition, the conditions under which other risks had arisen or materialized as significant problems were not confirmed.

For fiscal 2016, we will make efforts in accordance with management targets at each division and undertake appropriate control through the Risk & Compliance Committee.

Risk Hotline

Our Risk Hotline enables any Group employee who has obtained information relating to risks, including details of illegal activities going on within the Company, to directly report the matter to and seek advice from the Risk & Compliance Committee or an outside attorney. Any and all information relating to risks received through the hotline is immediately and appropriately reported to the Company’s corporate auditors.
Meanwhile, our Company regulations clearly state that employees using the hotline to report or seek advice about an incident must not receive unfavorable treatment.
The hotline is also open to reports and requests for advice from employees working for contractors at our works or other sites and those working for companies supplying us with items such as raw materials or parts.

[ Reporting and Points of Contact for Advice ]

< Reports to/consultation with the Company’s Risk & Compliance Committee >
For the attention of:
The Secretariat, Risk & Compliance Committee
General Affairs/Legal Division
Mitsui Chemicals, Inc.,
Shiodome City Center, 1-5-2, Higashi-Shimbashi, Minato-ku, Tokyo 105-7122, Japan
E-mail:Risk@mitsuichemicals.com
< Reports to/consultation with external point of contact [attorney] >
For the attention of:
Mitsui Chemicals, Inc. Hotline
Daiichifuyo Law Office, Kasumigaseki Building 12F, Kasumigaseki, 3-2-5, Chiyoda-ku, Tokyo 100-6012, Japan
E-mail:risk-MCI@daiichifuyo.gr.jp

Risk Hotline Operational Management

  • Our Risk Hotline enables any Group officer, employee, employee’s family member or client who has obtained any information relating to the Company’s business activities to report the matter and seek advice.
  • The Company restricts those able to view E-mails and letters received by the Risk & Compliance Committee or the external point of contact to only some of the members of the Committee. Furthermore, those able to view correspondence strictly observe confidentiality with regard to the name or location of any person using the hotline to report or seek advice or to the content of their report, which for the purposes of investigation is not disclosed to anyone other than the minimum number of officers and employees or to attorneys. Internally stipulated regulations safeguard the information against any leaks (including the name or location of any person using the hotline to report or seek advice, or acts that would make it easy to ascertain the content of their report).
  • The Company will keep confidential from anyone other than those involved any information relating to those cooperating for the purpose of the investigation or information gained through the investigation.
  • Any person using the hotline to report or seek advice is not to be subject to penalty by reason of having written a report or sought advice. Moreover, the Company is not to put any supplier at a business disadvantage by reason of having written a report or sought advice. However, this limit will not apply in cases where the person who used the hotline to report or seek advice had done so for the purpose of deceiving others, for example by deliberately conveying false information, or in cases in which a report was made for the purposes of unlawful activities, such as coercion or blackmail.
  • For reports and consultations we ask that names and locations be revealed and that reports and requests for advice be by letter or E-mail. Anonymous communications are accepted, but please be aware that in the event that a person cannot be contacted by the Company, there will be cases where the situation will not be fully understood and steps, such as an appropriate investigation or response, will not be taken.

Risk Hotline statistics

Business continuity plans (BCPs)

We have formulated a Business Continuity Plan (BCP) for execution in the event of a major earthquake in the Tokyo metropolitan area. The plan establishes the systems and outlines that, In the event that Head Office is unable to function, its functions would be moved to a main base such as the Osaka Works, an emergency headquarters would quickly establish a chain of command, and emergency customer response centers would be established to provide our customers with support quickly and effectively. BCPs have also been put in place in preparation for an outbreak of new-type influenza and for a large-scale accident at a production site.
In fiscal 2016, based on such scenarios as the high probability of a Nankai Trough earthquake and a major earthquake in the Tokyo metropolitan area, we intend to continue on from fiscal 2015 and again organize extensive BCP training, incorporating flexible measures aligned to changing conditions and situations, while also covering the potential risk of a major earthquake in the Tokyo metropolitan area. Following on from that, we also intend to review regulations and our BCP, focus on raising awareness in the workplace while taking stock of and maintaining essential equipment.
At production sites, we regularly conduct earthquake and tsunami readiness training and ensure that safe operational shutdown procedures and employee evacuation systems are in place.
From the business management standpoint, we are adopting a range of measures. With regard to some of the important raw materials, we are purchasing from multiple sources and ensuring back-up sources to safeguard the supply chain, building a production system at multiple business sites for the Group’s main products, and maintaining a certain level of inventory.