Organizational Governance

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Initiatives of Internal Control

International Trade Initiatives

Epson is a multinational corporation with production centers, sales centers, customers, and business partners around the world. Smooth international trade operations are essential if we are to deliver Epson products and services to customers in a timely manner.

Meanwhile, we must observe numerous conventions and frameworks governing international trade that have been put in place to maintain international peace and security.

To maintain compliance with these and to ensure smooth trade, Epson has established comprehensive systems and processes that have enabled Epson companies to earn certification from the relevant authorities in Japan and abroad for compliance with the international trade programs. (See the table below.)

Certifications


Approval certificate for Authorized
Importers' Program

In January 2013, Seiko Epson was certified under the Authorized Importers' Program run by Tokyo Customs. This program gives preferential customs treatment to authorized importers with high levels of compliance and cargo security. By filing a special import declaration, importers are able to import goods more quickly with fewer inspections and can file import declarations and receive authorization before the goods actually arrive in Japan. This program is beneficial to supply chain management because it ensures a stable lead time for customs processing.


Compliance Program

Epson has a comprehensive program for instilling compliance awareness.

In addition to a training course that presents employees with a broad overview of essential legal issues, we also provide compliance training that focuses on certain targeted subjects, such as copyright laws and antitrust laws. Compliance issues are also built into the training curriculums for new employees, persons recently promoted to senior staff positions, and managers.

For the executive management team we brought in an outside expert to give a seminar on antitrust issues. Overseas affiliates have their own local compliance rules and compliance training programs.

Case study : Legal Affairs Newsletter Marks seventh Year in Publication


Legal affairs newsletter

Epson's Legal Affairs Department in Japan publishes a monthly in-house newsletter that explains legal issues in an accessible way to foster awareness among employees. Now in its seventh year of publication, the newsletter not only raises awareness of legal compliance but also serves as a widely used resource that employees can turn to when they confront legal issues on the job or have legal questions. The readership, which exceeds 2,000, appreciates the easy to understand explanations of complex laws and the use of familiar examples. The Legal Affairs Department will continue to use the newsletter to provide employees with timely information on current legal issues.


Business Continuity Management

Epson has a solid business continuity management program in place. For many years we have taken action to prevent and manage disasters, but the program really got started in 2006, when we formulated a business continuity plan (BCP) for what was then our liquid crystal displays business.
If a disaster or some other event impacts business at an Epson Group production site, our first priority is to ensure the safety of our employees. Next, we take steps to ensure continuity of the product supply so as not to inconvenience our customers. In order to provide a steady supply of products, particularly consumables and core components such as quartz and semiconductor devices, print heads, and small liquid crystal panels, we have preparations in place that allow us to limit damage, secure repair parts, switch to alternative producers, and restore operations in line with established procedures. We conduct exercises to check our procedures and ensure their effectiveness. Mission-critical IT systems and critical data that are essential for business continuity are consolidated in a robust data center, and backups are at the ready in the event of a disaster. We have secured multiple distribution routes to enable us to immediately switch to alternative routes in response to any disruption in international shipping and transport. In addition, our finance, accounting, public relations, and other key corporate functions have established BCPs so that business can continue in emergencies.


Employees conduct an exercise using a BCP to be
invoked in the event of a major earthquake

Meanwhile, we ask the companies that make up our supply chain to strengthen their BCPs, and we check to see how established those BCPs are. We analyze the items we purchase, and we develop multiple sources for those that are most important. When we cannot secure multiple sources, we keep an inventory of goods on hand or try other means to ensure continuous production in the event that something should happen to a supplier.
Every business and site in the Epson Group will continue to refine its BCP to ensure that it has the resilience to withstand threats to business continuity going forward.