Compliance & Governance

Although we are a non-listed company, to demonstrate our commitment to long-term corporate value enhancement, we introduced a system in April 2023 that links executive compensation to the growth rate of our theoretical enterprise value over the medium-term plan period (3 years). In addition, we have incorporated non-financial indicators into the performance evaluations of our executive officers. These indicators include not only items such as reducing environmental impact but also performance metrics related to promoting diversity, such as increasing the ratio of women in management, and advancing culture reform. Through this, we promote a management style that balances both financial results and contributions to sustainability.

We actively promote diversity in our management team to incorporate diverse perspectives into our business decision-making. Currently, among our 22 executive officers, 13.6% are women (3 individuals) and 40.9% are mid-career hires (9 individuals). This ensures that our management team consists of talent with not only gender diversity but also a wide range of expertise and experience.

We are strengthening our Enterprise Risk Management (ERM) by integrating sustainability elements into our risk management framework. By simultaneously identifying both risks and opportunities, we aim to achieve sustainable growth and enhance corporate value. Through the ERM framework, our management team appropriately assesses risks and makes strategic decisions.

Through the thorough implementation of the Panasonic Group Code of Ethics & Compliance, we aim to cultivate a culture of Act with Integrity, where each employee autonomously thinks about what is right and acts accordingly. In addition to continuous messaging from management and various training programs, we conduct Compliance Workplace Discussions where employees proactively discuss and resolve workplace issues. As a result, our employees have a high level of compliance awareness, which is reflected in the scores of our Employee Opinion Survey (EOS).

To create an environment where all employees can work with peace of mind, we are actively working to eradicate harassment. Management demonstrates a strong commitment, with the CEO continuously delivering messages on harassment eradication at quarterly All-Hands Meetings. We have also established and implemented stricter penalties with strict and fair disciplinary standards that reflect the times. To ensure fairness and transparency, an independent Compliance Committee, separate from the business divisions, oversees the entire process from reporting to investigation and disciplinary action, utilizing advice from external experts as needed. As a result of these rigorous efforts, the number of survey responses reporting experiences of harassment has steadily decreased.

To promptly detect and correct issues such as misconduct and harassment, we have established a global hotline (EARS) that allows for anonymous reporting from both inside and outside the company. All reported cases are appropriately investigated and deliberated by the independent Compliance Committee in accordance with internal regulations. Since any form of retaliation against whistleblowers is clearly and strictly prohibited, reporters can speak up without fear of reprisal. We encourage speaking up and aim to create an organization that does not overlook wrongdoing.

*Employee Engagement Survey by Korn Ferry.

The Panasonic Group’s basic policy is to do business with partners who fulfill their social responsibilities, and we emphasize due diligence to prevent and mitigate potential risks in our supply chain. In 2022, our procurement division led the update of the Supply Chain CSR Promotion Guidelines. We ask all our partners to agree to these guidelines, which reference the RBA* Code of Conduct, and we conduct CSR self-assessments before starting business.

Furthermore, we have added CSR initiatives to our traditional QCDS evaluations. If a high risk is identified, we request improvements through on-site audits. Through these activities, we prevent negative impacts on human rights and the environment and build a robust foundation for business continuity. 

On the foundation of responsible procurement, we are developing ECOVC Activities to create new value with our partners. This is a Panasonic Group initiative aimed at balancing both environmental value (ECO) and cost rationalization (Value Creation). We position this as a platform for co-creation,  combining our expertise with our partners know-how to enhance the competitiveness of the entire supply chain.

This activity is also linked to our long-term environmental vision, Panasonic GREEN IMPACT.  Together with partners who supply essential electronic components, materials, and manufacturing services for our B2B solutions, we are working on diverse themes such as consolidating parts that directly lead to product power savings and utilizing recycled materials. We share the results of these activities within the group to drive overall improvement.

We provide high-quality products and solutions with consideration for the global environment.