Follow Thorough Compliance with Laws and Regulations, Build a Risk Management System, Promote Information Security Measures

Follow thorough compliance with laws and regulations

Basic stance

The Nidec Group sees non-compliance as a material risk that may lead to a loss of social trust and economic damage. Therefore, the Nidec Group comprehensively follows applicable laws, regulations, internal rules and standards, social ethical standards, etc. to raise executives’ and regular employees’ ethical awareness, develop conscience as a company, and win society’s trust as we continue our compliance activities.
　At present, we are working to establish and enhance a global compliance system that will enable us to address individual issues and cases arising in different regions more promptly and appropriately. We will also strengthen compli-ance education for employees to further raise their compliance awareness, thereby reducing compliance-related risks.

Organization

Nidec’s Legal & Compliance Department, working in partner-ship with Regional Compliance Officers of the individual regions where the Nidec Group’s business bases operate (the Americas, China, Europe, and Southeast Asia) and Compliance Managers and Promoters of individual business departments and group companies, builds and operates a global compliance system. Compliance Managers implement and operate compliance-related measures to raise the compliance awareness of the organizations under their supervision, and bear responsibility for preventing compliance violations. Compliance Promoters promote the specific compliance measures of such organizations, while serving as a liaison with the Legal & Compliance Department and Regional Compliance Officers, who provide support for individual regions’ Compliance Managers and accept whistleblowing cases.

Internal reporting system

As part of the comprehensive, group-wide compliance system, we have established an internal reporting section (the Nidec Global Compliance Hotline) available for all board members, executives and employees (including regular and part-time employees, those dispatched from outside agencies, and limited-term employees). Fiscal 2020 saw a total of 116 cases of whistleblowing and consultations made on suspected misconducts and harassment, among others, a decrease of 26 cases from the previous fiscal year. The status of internal reports is reported to the Board of Directors and the Audit and Supervisory Committee on a regular basis.

Compliance seminars

As part of the compliance promotion activities, we hold compliance seminars for our group’s executives and employees to maintain and improve their level of compliance awareness. For example, seminars and discussions are held on such topics as cartels, bribery and human rights issues, with the Regional Compliance Officers serving as lecturers using the Nidec Compliance Handbook as teaching material. The compliance seminar for board members and executives is also held once a year, with the invitation of an outside lecturer.

Build a risk management system

Basic stance

It is necessary and important to identify and manage risks for the purpose of preventing the expansion of losses due to lack of readiness for possible risks, loss of business opportunities, decline of ratings, and other negative impacts. Nidec has identified risks facing the Nidec Group, clarified the relevant departments, and determined the risks that should be reduced in order of priority. The company manages the progress of reducing the impact of such risks on our business, while working to enhance its initiatives to identify signs of risks.

Risk management system

The Nidec Group uses a medium-term business plan, which is designed to realize the group’s long-term vision that is defined as a set of specific numerical and qualitative targets, as a basis of the group’s business plan for each fiscal year. The medium-term plan is formulated based on discussions on its feasibility as a medium-term goal, consistency with the long-term vision, and issues and risks to overcome for its achievement. The plan may be revised (rolled) during its execution phase according to changes in the market and the status of progress.
　We have also formulated the Risk Management Regulations to establish a risk management system for the entire Nidec Group, and have in place a Risk Management Committee under the Board of Directors. Important information is promptly reported and shared in the risk management meeting held every morning, so that the information can be utilized in our daily operations. It is also discussed and shared in the Management Meeting as necessary.

BCP (Business Continuity Plan)
Starting from March 2014, the Nidec Group has conducted BCP simulation training assuming such risks as an earth-quake, flooding, drought, outbreak of an infectious disease, and fire, at its sites both inside and outside Japan. As of March 31, 2021, over 3,100 employees had participated in the training. At the end of January 2020, we set up a COVID-19 Crisis Management Headquarters, working to revise the company’s BCP based on the assumption that the pandemic would be prolonged.

Promote information security measures

Basic stance

The Nidec Group possesses information that is necessary for conducting its business activities, including not only the information produced or gathered within the Group but also information provided by its business partners. We understand that it is very important to protect and use these information assets properly and appropriately. Information that should be protected includes management information, technical information, financial information and personal information, which are extremely important. Deterioration or leakage of any such information may lead to loss of trust in us from our customers or the market, as well as a decline in our competitiveness. It may also result in a legal penalty.
　Based on this understanding, in 2019, Nidec appointed a Chief Information Security Officer and set up an Information Security Committee, under which an Information Security Management Office was placed as a department dedicated to information security. Also, each organization of the Group has an information security manager and an information security promoter in place to support the Group’s informa-tion security management.
　Since FY2019, information security training has been continuously provided for directors and employees. During the information security enhancement month each year, information on the theme for the year is communicated to raise the awareness of information security of directors and employees.
　We will continue to identify and assess rapidly changing and increasing information security risks, and make efforts to ensure the proper protection and use of our information assets by operating effective systems appropriate for individual risks under the Group’s information security structure, with the aim of achieving the target of zero serious security incidents.