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About Panasonic
Promoting Thorough Compliance
Think Globally, Act Locally
Ikusaburo Kashima
Managing Director
In charge of: Legal Affairs, Intellectual Property Rights; Corporate Business Ethics; Legal Consultation & Solutions Center; Corporate International Affairs
Think Globally!
Companies today operate in a borderless environment with competition on a global scale. Success demands conducting business activities from a global perspective. In the past, many people believed that global compliance activities were impossible because of differences in laws, regulations and customs in different countries and regions. But business laws and regulations worldwide are becoming more uniform in response to economic globalization. The same is true of Corporate Social Responsibility (CSR). Companies worldwide are adopting similar policies that transcend differences in regional and national laws, regulations and customs.
I strongly sense these trends every time I speak with managers, employees and stakeholders at our business sites around the world. This is why I am determined to establish simple and easy-to-understand compliance systems that conform to global standards and can be used at our business sites anywhere in the world.
Every aspect of our activities is guided by the management philosophy that Panasonic has used since its inception. At the heart of this philosophy are the principles that "a company is a public entity of society" and "we contribute to society through business activities." To transform this philosophy into actions, we have a Code of Conduct that has been translated into 22 languages. The code provides a common set of guidelines for the daily activities of our group's workforce of about 300,000. In October 2008, we changed our name to Panasonic and started using this brand for all our products. At that time, the Matsushita Group Code of Conduct became the Panasonic Code of Conduct. In addition, we announced a more clearly defined basic policy for meeting on a global scale the even greater social demands that companies must fulfill.
October is Compliance Awareness Month at the Panasonic Group. Employees worldwide participate in unified compliance activities during this month. Our highest priorities are conforming to fair trade rules and security export controls. We take rigorous actions at all group business sites to ensure compliance with these rules and regulations.
Act Locally!
We must also adopt the policy of "Act Locally" to conduct effective compliance programs. This means developing compliance methods that conform to the characteristics of each country, region and business field while adhering to our global compliance policies. Accomplishing this requires building networks to ensure thorough compliance in each country, region and business field. This will allow us to create compliance programs that reflect regional and business site characteristics as well as our corporate objectives.
One more aspect of the "Act Locally" approach is building compliance programs based on three perspectives: work sites, work products, work realities." The "training-is-everything" approach of the past is unable to take compliance to a higher level. A multi-faceted approach is necessary. For instance, when a compliance violation or scandal occurs, we need to categorize the cause to create specific countermeasures. For example, the cause could be a willful act, such as organizational actions and acts to benefit an individual, or it might be negligence resulting from inadequate knowledge or a business process error. For willful acts, our activities are aimed at preventing the occurrence of violations and other problems. Primary measures are statements by top management emphasizing the importance of compliance and a penalty system. For negligence as well, we focus on prevention. Executives and employees undergo extensive training programs. We also review work processes, introduce use of information technology and take other steps to prevent problems caused by negligence. More time will be needed to firmly establish these compliance systems in every site of our operations. But I am convinced that use of this multi-faceted approach is needed to eradicate one by one the aspects of our operations that could lead to a compliance violation or scandal.
In fiscal 2010, Panasonic will again conduct compliance activities based on the theme "Think Globally, Act Locally!" in order to remain a trustworthy member of society.
[Causes and Countermeasures for Violations and Scandals]
Compliance Awareness Surveys
To help ensure that our compliance promotion activities have effectively penetrated throughout the workforce, we conduct an annual "Compliance Awareness Survey", as an important monitoring activity, asking all employees globally to participate.
In addition to a core of common questions that appear on all versions of the survey so that global trends can be measured, each region also includes questions based on such region's actual situation.
- Examples of common survey questions:
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- Do you feel that your workplace has any hidden problems related to compliance with laws, regulations and business ethics?
- In your job, if there was a conflict between promoting business on the one hand and complying with laws, and regulations and generally ethical business conduct on the other hand, which do you think the priority of your workplace should be?
- If laws, regulations or business ethics are violated or are likely to be violated in your workplace, do you believe that this will be reported to the executive (president of your company, directors, business unit leaders, etc.) before long?
- Have you ever heard executives (president of your company, directors, business unit leaders, etc.) telling you their views or policies about the need for compliance with laws, regulations and business ethics?
The results of the surveys are analyzed by region, company and employee's position/title, and results are used in the planning of compliance-related measures as well as in solving challenges.
- Example of Analysis 1 -- Comparison between regions --
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Fig.1 shows an example of the regional comparison of certain survey answers. Based on the results of analysis globally shared, regional challenges have been identified and problem-solving activities have been implemented in each region.
Examples of the analysis and use of survey results
[Fig.1]
If laws, regulations or business ethics are violated or are likely to be violated in your workplace, do you believe that this will be reported to the executive (president of your company, directors, business unit leaders, etc.) before long?
- Example of Analysis 2 -- Correlation and Year to year comparison --(Japan)
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Fig.2 shows the correlation between survey questions and their year to year change. The results of the fiscal 2007 compliance awareness survey suggested a correlation between the two questions in Fig.2. In fiscal 2008, management executives were provided with increased opportunities to convey their thoughts on compliance and relevant corporate policies and they were encouraged to do so. The answers to both questions in the fiscal 2008 compliance survey show that this increase in communications from management had the desired result of increasing the likelihood that violations will be promptly reported.
[Fig.2]
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