Lacto Japan discusses risk management via the Risk Management Committee chaired by the Managing Director. In addition, we manage credit risk under the leadership of the Finance Department.
We review the BCP on a Company-wide basis every year and implement it systematically. At the time of the Great East Japan Earthquake, problems occurred such as the inability of cargo from overseas imported by ship to arrive, so we are considering countermeasures that particularly emphasize risks such as tsunami and the destruction of port facilities.
At our overseas bases, we have set up a private power generator that can withstand several days of power outages.
The relocation of the head office in Tokyo in 2018 also strengthened its preparedness for earthquakes and power outages.
At present, taking advantage of responses to prevent the spread of COVID-19, we are promoting the development of a telework environment that will enable work to be done without employees coming to the office. Initiatives include backing up supplier and purchaser information, revising work flow, and encouraging the use of web meetings.
The Corporate Staff Division supervises information security. In particular, the Business Accounting Department is responsible for system-related management. The Business Accounting Department was established in April 2019 and also manages systems related to management accounting.
Since fiscal 2019, we have progressively changed PCs in the Company to notebook PCs to improve work convenience. In tandem with this, we are reviewing changing mail servers, the storage of business information in the cloud, management of USB devices and connections with smartphones for work use. Furthermore, as there is a large amount of email communication with overseas locations for business purposes, we are also engaged in preparing various kinds of IT seminars such as security training specializing in email. As regards the use of social networking services (SNS) by employees, we have clearly documented Social Media Guidelines and thoroughly ensured that employees are familiar with them.
In the future, we will strive to strengthen the Business Accounting Department in preparation for risks such as cyber terrorism and we will reinforce security training for employees. Note that, to date, no actual complaints have been filed regarding infringement of customer privacy or loss of customer data.
Lacto Japan discusses compliance via the Compliance Committee chaired by the Managing Director. Going forward, we plan to establish a compliance program within internal training to enhance awareness of compliance within the Company. We will also expand the scope of training subjects to disseminate knowledge regarding environmental protection and ESG.
We conduct training regarding insider trading about once every two years inside the Company. In the future, we plan to develop regulations and strengthen the system for actual operation.
The trademarks owned by Lacto Japan are centrally managed by the head office, as a rule, and advice is appropriately received from outside patent attorneys. Some of the trademarks owned by Singapore’s manufacturing department are locally managed.
We have clearly specified regulations on the prevention of corruption in the Corporate Code of Conduct and the Code of Conduct for Officers and Employees. To date, no legal action has been taken against the Company based on the occurrence of anti-competitive behavior, anti-trust, or monopolistic practices.
In addition, there have been no cases of political contributions in Japan or overseas. Lacto Japan has not been subject to any severe fines or sanctions other than fines stemming from the violation of laws and regulations.