We are active in the following viewpoints to Continue as a Company Trusted and Supported by Society.
Under the Companies Act of Japan, Pioneer has elected to structure its corporate governance system with a Board of Corporate Auditors. The Board of Directors decides on fundamental issues such as management policies and supervises the execution of business activities, while the Board of Corporate Auditors audits the directors’ performance of their duties, and Pioneer has adopted an executive officer system to expedite the execution of business activities.
Meanwhile, Pioneer has striven to construct an effective corporate governance structure by establishing voluntary advisory committees, which are attached to the Board of Directors, to further strengthen the supervisory function of the Board of Directors, as well as a Group Executive Committee to reinforce the decision-making function of the Board of Directors.
The Pioneer Group continues to upgrade, expand, and bolster its internal control system in an effort to prevent risk and address crisis situations. In this manner, the Group is endeavoring to enhance the integrity of its management.
To ensure the adequacy and optimal efficiency of business activity execution throughout the entire Group, Pioneer has positioned the Pioneer Group Charter for Corporate Operations as its foremost component, under which have been established the Pioneer Group Code of Conduct as well as the Rules of the Pioneer Group, which consist of specific rules outlining the scope of responsibility and authority for each Group company along with guidelines relating to compliance and other areas, and all Pioneer Group employees are fully informed of these stipulations.
Chaired by a representative director, Pioneer’s Internal Control Committee was established in accordance with the Basic Rules for Internal Control Systems, which are part of the Rules of the Pioneer Group, to consolidate and reinforce those management systems aimed at addressing risks inherent in the Group’s business activities. The Internal Control Committee conducts risk assessments to acquire a better understanding of risks, and works to address risks by formulating preventive measures and taking other proactive steps. The Audit Division audits the business operations of the entire Group, and collaborates closely with internal audit managers from each Group company, the Board of Corporate Auditors and other related parties when auditing internal control systems and risk management as it endeavors to enhance the efficacy of internal audits related to corporate ethics, quality control and environmental protection. Moreover, auditors ensure the effectiveness of their audits by meeting regularly with representative directors and expanding opportunities for periodic explanations and reports from the Audit Division and independent auditor.
The Pioneer Group will consistently take note of changes in society as it continues to provide products and services. To fulfill its social responsibilities, the Group intends to gain an understanding of society’s expectations through dialog with various stakeholders including shareholders, consumers and customers, local communities, business partners and employees.
Of foremost importance is the Pioneer Group Charter for Corporate Operations, which aims to ensure that the Group will remain trusted and respected by society as a good corporate citizen. In addition, the Pioneer Group Code of Conduct has been established to outline basic decision-making and behavioral standards for Group directors, officers, and employees.
Each Group company ensures that every officer and employee follows this code while observing the laws and social conventions of their respective countries and regions.
The Pioneer Group has formulated the Basic Rules on Disclosure, which form a part of the Rules of the Pioneer Group, to timely and appropriately disclose corporate information to all stakeholders including shareholders, investors, customers, suppliers, mass media and local communities. Based on the Basic Rules on Disclosure, the Group actively and fairly discloses information required by laws and public regulations, as well as information that is considered useful for better understanding of the Group and making decisions to invest in the Company’s shares. By ensuring appropriate disclosure of corporate information, Pioneer will increase the transparency of the corporate activities with the aim of deepening the understanding and trust of shareholders, investors and society at large.
Furthermore, the Company enhances the Group’s internal control system to ensure the adequacy of financial reporting under the Financial Instruments and Exchange Act of Japan. The Company obtained an audit opinion from the Independent Auditor that the Group’s internal control system regarding Pioneer’s annual securities report of fiscal 2018, ended in March 31, 2018, is effective.
Under the Rules of the Pioneer Group, the Group has formulated the Basic Rules for Prevention of Insider Trading. To prevent insider trading, Pioneer is successively implementing various initiatives including the reinforcement of information management as well as the regulations relating to the trade of the Company’s shares and education on insider trading for the Group’s directors, executive officers, corporate auditors and employees.
As a global company that undertakes its operations within many communities around the world, the Pioneer Group hopes for the maintenance and expansion of international peace and security. Therefore, the Group regards as fundamental management principles the international consensus in security export control and compliance with every country's laws concerning the regulation of exports. In addition, Pioneer has formulated its Basic Rules on Security Export Controls under the Rules of the Pioneer Group and appointed one of its representative directors to oversee the appropriate management of export control.
To promote fair and free business practices, the Pioneer Group has established the Basic Rules on Fair Trade, which serve as the basic standard for the Pioneer Group, and subordinate rules are laid out, as necessary, in manuals to prevent acts which violate laws and regulations pertaining to competition laws, such as the unreasonable restraint of trade, unfair trading methods, and private monopolization.
In order to make these basic rules and manuals thoroughly well-known within the Pioneer Group, the Group's domestic and overseas legal departments have taken the lead in offering compliance training. These efforts have been reinforced with the holding of workshops on countering bribery and other matters as well as formulating and communicating guidelines.
In the spirit of promoting fair corporate activities with respect for social norms as specified in the Pioneer Group Charter for Corporate Operations, the Pioneer Group has completely cut off all interaction with antisocial forces and groups as required by the Pioneer Group Code of Conduct in applying Pioneer Group policy on excluding antisocial forces that threaten the safety and orderliness of civil society.
In addition, we have also established the Basic Rules for Excluding Antisocial Forces, and have set up a department that presides over responses to antisocial forces, forms partnerships with external specialized agencies, shares information within the Pioneer Group, and provides thorough guidance on handling rules and communication when addressing such situations so that we respond in a lawful manner that is systematic and resolute.
As an important part of our strategy for expanding our business, the Pioneer Group endeavors daily to augment our intellectual property, the basis for which is appropriately maintaining and managing intellectual property acquired from research and development of technologies as well as respecting intellectual property held by others. Pioneer and its Group companies have established a copyright liaison meeting for their respective administrators of relevant departments to ensure Group-wide compliance of copyright protection technology in all Pioneer products. Furthermore, to avoid betraying the trust that customers have in the Pioneer brand, the Company’s business divisions and Intellectual Property Division work together with related departments at Group companies to eliminate counterfeit goods from the marketplace, since they threaten to damage Pioneer’s brand value and confidence.
For the benefit of the Group’s employees in Japan, the Company posted a Q&A page on its intranet bulletin board concerning the protection of copyright in operational activities. At the same time, Pioneer has set up an inquiry desk to answer employees’ questions.
Within the Rules of the Pioneer Group, the Company has formulated the Basic Rules for Information Security Management. These Rules form the basis of the Group's information security framework and outline the policies and measures to be implemented to ensure the optimal protection, utilization and management of information assets.
The Pioneer Group adheres to all relevant laws and regulations and regards compliance as the foundation for fulfilling its corporate social responsibilities and the basis for creating a workplace environment in which employees can carry out their duties with security and complete peace of mind.
The Business Ethics Committee, chaired by an outside director, was established in accordance with the Basic Rules for Business Ethics, which forms a part of the Rules of the Pioneer Group. This Committee aims to ensure strict adherence to all relevant laws and regulations as well as the Pioneer Group Code of Conduct by all members of Group management and employees. Behavior that departs from accepted standards can upset the harmony of the workplace. In order to eliminate any wrongdoing, internal auditing has been consolidated across the Group. In addition, the Business Ethics Hotline has been established as an internal whistleblowing system for the entire Group to quickly detect and appropriately address behavior that is in violation of the Pioneer Group Code of Conduct. The Hotline, operated by an external agency, is administered appropriately to ensure that informants are not treated unfavorably on account of having reported something to the hotline while maintaining their anonymity.
The information is also sent simultaneously to the Business Ethics Committee and the corporate auditors, enabling them to ensure a response in good faith. The Committee Administrative Office provides information to employees about the Business Ethics Hotline such as with posts on the intranet bulletin board. This creates an environment that allows employees to report any wrongdoing they may encounter.
Outline of Whistleblowing and Inquiry Information Flow
Forming a part of the Rules of the Pioneer Group, the Basic Rules for Crisis Controls have been formulated to optimize the Group's response in the event of a crisis that has the potential to seriously impact its business and operations. Chaired by a representative director, the Emergency Management Committee has been established as a permanent organization pursuant to these basic rules. In addition to overseeing the education, training and notification processes as they relate to crisis management, the Committee assigns officers, who are responsible for addressing and resolving crisis events and issues, to each division of Pioneer and each Group company. The Crisis Control Manual outlines the roles and responsibilities of each crisis management organization as well as crisis management response procedures and protocol.
In the face of such disasters as a highly virulent inuenza epidemic or an earthquake of major proportions, the Pioneer Group places the utmost emphasis on ensuring the safety of human life. In this regard, and in order to ensure a swift resumption of business activities, the Pioneer Group has created a disaster manual that outlines those measures and actions to be adopted in the event of a disaster or crisis. Moreover, the Group has taken steps to secure adequate reserves of emergency food, medical and other supplies while maintaining appropriate modes of communication. These initiatives are supported with continuous emergency drills and training.
Taking into account the experiences of major disasters that have previously occurred in Japan and elsewhere, a Business Continuity Plan (BCP) has been established to enable the prompt restoration of operations after the safety of human life has been secured. Training based on the formulated BCP is periodically conducted to enhance its eectiveness, while improvements continue to be made on the process for its evaluation.
BCP Disaster Response Headquarters Training
The Pioneer Group Code of Conduct requires the Group to deal fairly with suppliers on an equal footing, in accordance with relevant laws and agreements. In addition, it requires suppliers to act with awareness of their social responsibility, observing the laws of the countries and regions where they do business and respecting international agreements of the United Nations, the International Labour Organization, the Organisation for Economic Cooperation and Development, and so on.