As part of our basic CSR, which concerns the fundamental obligations of a company as a member of society, each company in the azbil Group—both in Japan and overseas—is making every effort to raise awareness of compliance issues and to encourage corresponding action.

Business Conduct Policy and Code of Conduct

The azbil Group has instituted a Business Conduct Policy for Group companies, consisting of five elements: (1) fulfilling the Group’s public and social responsibilities; (2) compliance with antitrust and other fair trade regulations; (3) respect for humanrights; (4) proper management of corporate assets; and (5) protection of the environment. We have also established a Code of Conduct for all employees, consisting of 50 specific guidelines covering all aspects of our business activities. In cases where a breach of the Code of Conduct is discovered, the code imposes a mandatory reporting requirement and forbids reprisals, thereby putting in place an environment in which checks can function effectively.

Maintaining and Improving Awareness of Compliance Issues

TEach year, the azbil Group conducts educational forums for officers and department managers, hosted by external professional lecturers. These officers and department managers, who are called compliance managers, work continuously to raise awareness of compliance issues throughout the Group. Each year, we conduct surveys of all Group employees to gauge compliance awareness and the status of internal compliance, using the results to identify problems and implement measures to address them. In the year ended March 2017 we surveyed a total of 11,000 people, including domestic and overseas employees, and found that more than 98% recognize the importance of compliance. In compliance education for employees, we are stepping up efforts to raise compliance awareness by checking the guidelines that serve as the standard of behavior, confirming priority measures, and disseminating information.

Preventing Legal Risk

The Legal and Intellectual Property Department of Azbil Corporation bears primary responsibility for ensuring complete compliance with external laws throughout the azbil Group. In addition to promoting full legal compliance in business activities, it provides education related to the law and also addresses the Group’s legal risk overseas, which is increasing as our global expansion accelerates. The department makes every effort to ensure timely and appropriate responses to important new laws and associated issues, and endeavors to prevent problems from occurring.