Fair Management

 

Compliance

Basic Approach to Compliance

Alps Group Compliance Charter

 As parent of the Alps Group, Alps Electric established the Alps Group Compliance Charter as one element of the Alps Group Management Paradigm, a statement of fundamental compliance philosophy and six action guidelines shared by the entire Group.
 We also appeal to all organizations and employees within the Alps Group to make an effort at all times to act responsibly and sensibly in line with the Alps Group Compliance Charter, aiming for fair management in keeping with the purpose of the law, social requirements and corporate ethical standards. Here we believe it is important to go beyond the formalities of observing laws and rules and take appropriate action proactively having acquired an understanding of why those laws and rules are necessary—their purpose and significance.
 Furthermore, the core companies of each business segment (electronic components: Alps Electric; automotive infotainment: Alpine Electronics; logistics: Alps Logistics) globally deploy within each of those segments specific measures based on the Compliance Charter and consistent with their respective business domains, such as the establishment of “systems for ensuring the appropriateness of operations” and necessary in-house rules and regulations.

Measures

 As the core company of the electronic components segment, Alps Electric has established a set of compliance regulations based on the Alps Group Compliance Charter and globally deploys specific measures within the segment.
 The deployment of measures goes beyond developing and introducing rules and systems. Importance is placed on ensuring that those rules and systems are properly implemented and function effectively by urging individual employees, who actually engage in the activities, to take proactive action based on a proper understanding of the importance of compliance.
 Specifically, internal controls are established and implemented to ensure that management of the company and Group operations are carried out appropriately; that departments carry out self-checks (monitoring) of their own activities; and that the internal audit department carries out internal audits of the activities and operations of company departments, overseas affiliates and other subsidiaries.
 To ensure early discovery and correction of misconduct or other compliance incidents, persons in charge of facilities in Japan and overseas affiliates are obliged to report any incidents when they occur to the Alps Electric director with jurisdiction over the facility or affiliate, the director in charge of administration, and corporate planning and compliance departments.

Internal Reporting System

 The Alps Electric Group has in place an internal reporting system (Ethics Hotline), independent of the executive management team, for responding to problems where reaching a resolution through organizational lines is complicated. Taking into account national and regional variations in law and the need for an agile response to incident reports, Ethics Hotlines have been set up in Japan and the main overseas affiliates.
 Alps Electric has a set of in-house regulations that make the full-time member of the Audit and Supervisory Committee, outside members of the Audit and Supervisory Committee and the head of the department in charge of compliance matters contacts for the Ethics Hotline and provide for the confidentiality of reporting, the ensuring of reporting anonymity and the protection of reporting individuals. Contact details for these parties and a basic policy on implementation of the system are communicated as required, for example via the Shaho in-house bulletin and training.

Global Implementation of Compliance and CSR Training

 The Alps Electric Group introduced annual compliance and CSR training globally in fiscal 2015.
 The training not only provides a general outline of compliance and CSR, but also covers topics such as bribery, proper accounting procedures, information security, prohibition of harassment and discrimination, compliance with antitrust law, and prohibition of corruption and bribery with the objective of ensuring full awareness of these issues.
 In fiscal 2015, the inaugural training program was implemented at Alps Electric and affiliates in China (including Hong Kong and Taiwan). In fiscal 2016, the same program was implemented at overseas affiliates in areas other than China. From fiscal 2017, a second training program will be deployed in turn, starting with Alps Electric.

1st Compliance and CSR Training Program: Sections and Content

Section Content
1.Achieving fair and honest management and business operations General outline of compliance and CSR
2.Avoiding wrongful activity and getting caught up in wrongful activity Embezzlement and breach of trust, bribery, corruption, commercial bribery, antitrust law (with focus on cartels)
3.Ensuring prompt, proper and honest accounting Proper accounting procedures and necessary considerations by employees
4.Enabling effective information management and appropriate and effective use of information Information security
5.Ensuring respect for the character and individuality of employees Harassment, discrimination
6.Discovering and correcting misconduct and rule violations Internal reporting system, contacts for reporting