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Governance
Compliance
Policy and Basic Concept
Ricoh has established seven values in its corporate philosophy, “Ricoh Way”, as guidelines for employee behavior to fulfill its mission and achieve its vision. One of these values, “ETHICS AND INTEGRITY”, emphasizes acting with honesty and accountability. In the employee evaluation system, in addition to the value provided to customers, employees who embody “Ricoh Way” and demonstrate high performance are highly regarded.
Additionally, the Ricoh Group considers that “compliance” includes observance of not only laws and regulations, but also company rules and social ethics. Therefore, the Ricoh Group provides thorough instruction of each company's action principle, which provides the principles of Ricoh Group's corporate behaviors, and “Ricoh Group Code of Conduct”, which indicates behavioral principle of directors and employees of the Ricoh Group. Every member of the Group is concerned to ensure all employees observe the principles in their daily activities.
Ricoh Group Code of Conduct
In 2003, we formulated the Ricoh Group Code of Conduct to fulfill our social responsibilities in developing our corporate activities.
In 2018, we integrated it with the “Ricoh Group CSR Charter” and revised it as the “Ricoh Group Corporate Code of Conduct,” and in 2023 the latest version, which takes into account recent social trends, came into effect.
The Code establishes the principles of conduct for each company in the Ricoh Group and the basic code of conduct for its officers and employees (including contract employees, part-timers, and part-time workers）, from the perspective of preventing corruption, complying with laws and company rules, and acting with high ethical standards.
The heads of management at each Ricoh Group company are responsible for compliance with the Ricoh Group Code of Conduct. Each Ricoh Group company endeavors to ensure that all officers and employees strictly adhere to the Ricoh Group Code of Conduct.
Chapter 7 of the Ricoh Group Code of Conduct advocates for “Ensuring fair corporate activities”, stating that all officers and employees of the Ricoh Group must comply with legal regulations and socially respected rules and act with sincerity, honesty, and responsibility.
If any violations of the Code of Conduct by Ricoh personnel are discovered, these may be taken into consideration during performance evaluations or those guilty of the violations may be subject to disciplinary action based on employment regulations.
Code of Conduct education and training
The Ricoh Group revised the Ricoh Group Code of Conduct in fiscal 2018 and developed Code of Conduct education for all global employees in fiscal 2019. New employees to the Ricoh Group are required to undergo the Code of Conduct training at the time of their entry to ensure that all employees understand and can act in accordance with the standards.
In addition, since fiscal 2019, we have designated Compliance Month every year, and are planning and implementing compliance-specific education and training globally. To date, we have addressed topics such as anti-corruption and harassment, and have sent out messages from top management and provided comprehensive web-based education and training to directors and employees (including contract employees, part-timers, and part-time workers) to raise each and every employee's awareness of compliance.
In Japan, the Ricoh Group provides all its directors and employees (including contract employees, part-timers, and part-time workers) with education on the Code of Conduct via regular e-learning programs. The content of the education includes confirmation of each provision of the Code of Conduct as well as other topics relating to the enforcement of laws and regulations as priority issues with actual case example. After finishing the courses, the participants are tested to check their level of understanding.
Internal Controls
The Ricoh Group aims for continuous improvement based on the values embodied in The RICOH Way.
That includes operating an internal control system designed to strengthen competitiveness while maintaining transparency based on principles of corporate ethics and legal compliance. Ricoh has established the Ricoh Group Corporate Management Principles as a set of guidelines for corporate activities, and follows the Internal Control Principles included therein.
- The Group Management Committee (GMC) was established to oversee the Group's overall business operations and to enable quick analysis and decision making to ensure the best result for the Group as a whole.
- The Internal Control Committee was established within the GMC to determine action policies, report incidents, and evaluate and correct the control system regarding internal controls, risk management and compliance in particular.
- Corporate Management Regulations for Ricoh Affiliates stipulate the establishment of a supervising organization to oversee risk at all Ricoh Group companies.
- The Ricoh Group Standards (RGS) have been established as a set of common rules for all Ricoh Group employees to follow, and adherence to these rules across the Group is ensured.
- A disclosure policy has been established to ensure that corporate information released by the Group is accurate, timely and comprehensive. A Disclosure Committee has also been set up, with the CFO (who is the chief officer responsible for information disclosure) as its chairperson. The Committee is charged with determining and judging the importance of information to be disclosed, necessity of disclosure and adequacy of content being disclosed.
- Internal audits are conducted to ensure the reliability of our financial reports, improve operational efficiency, confirm compliance to laws and regulations, and to confirm that risk management measures are being implemented properly.
- The Fraud Risk Management (FRM) program of the Ricoh Group has been deployed to prevent fraud risk and adopts a check sheet and tools to detect anomalies within large volumes of data in the internal audit.
Internal audit
Based on “the Internal Audit Standard” and “the Annual Auditing Plan”, the Internal Auditing Office of an independent dedicated organization annually conducts internal audits of the status of the Group's business execution using a risk approach from the viewpoints of legal compliance, effectiveness and efficiency of operations, reliability of financial reporting, and safeguarding of assets, and it provides advice and recommendations for improvement from a fair and objective standpoint. The audit targets are selected annually from our various organizations and all subsidiaries based on risk assessments, effectiveness, and efficiency. Audits are conducted according to the plan. In addition to financial audits, the audit includes operational audits of each Ricoh Group company, including compliance promotion systems (anti-corruption and compliance with the Ricoh Group Code of Conduct, etc.) and their information security management system (compliance with privacy policies, etc.). The results are reported quarterly to the "Internal Control Committee" established under the president's executive officer and half-yearly to the Board of Directors.
The Internal Audit Office holds regular information exchange meetings with Audit & Supervisory Board Members and reports on the audit results and internal control status of the Group. Moreover, we utilize a common database to enable information to be viewed by the Internal Audit Office and Audit & Supervisory Board Members, and we carry out audits in close cooperation with these two bodies.
In addition, the Audit & Supervisory Board Members, the Board of Corporate Auditors, and the Internal Audit Office hold regular and irregular information exchange meetings with the 3rd party Accounting Auditor to discuss the details of audits. Through these meetings, the four maintain close cooperation with each other by exchanging opinions on the status of internal control and risk assessment which is grasped by the auditors.
Issues identified in these audits undergo a cycle of consideration for improvement within each department and consolidated subsidiaries. Through periodic reassessment, it is ensured that necessary improvements are implemented, contributing to the enhancement of internal controls within our company group and the improvement of the quality of business operations.
Whistle-blowing system
The Ricoh Group has established the Ricoh Group Hotline, which is available to all executives and employees of the Ricoh Group in Japan (including part-time workers, temporary staffing workers, and retired employees within one year after retirement) for reporting and consultation regarding compliance violations under real names in principle or anonymously if they wish. The initial reception desk is located outside the company and can be contacted by phone or via the web. In both cases, a dedicated number and webpage have been set up to protect the security of the content of the consultation, as well as to prohibit any disadvantageous treatment or retaliatory measures against the person making the report or seeking consultation. The hours of operation have been reviewed to make them more accessible to the potential whistleblowers by telephone while they are accessible 24 hours a day via the web.
Major Ricoh Group companies have also established and are operating their own reporting and consultation services in accordance with the characteristics of their organizations and regions, and the status of awareness of the whistleblower system is checked when internal audits are conducted by the auditing division.
Furthermore, in November 2018, we established the Ricoh Group Global Whistleblower System, which is available to all executives and employees of the Ricoh Group in Japan and overseas, and a system that allows them to report directly to Ricoh's full-time corporate auditor via the web. In May 2020, we also established the Supplier and Partner Hotline, which is available on our corporate website for reporting by Supplier and Partner companies related to the Ricoh Group in Japan and overseas.
The content of reports and consultations is regularly reported to management, leading to improvements in issues and horizontal deployment of preventive measures as the Ricoh Group.
In addition to the Ricoh Group Hotline, each major Group company in Japan and overseas has its own internal hotline for reporting and consultation, according to the characteristics of each organization and region. In fiscal 2023, there were 1,255 cases of whistleblowing, of which two resulted in serious incidents.
| FY2021 | FY2022 | FY2023 | |
|---|---|---|---|
| Number of whistleblowing cases | 941 | 1,143 | 1,255 |
Basic flow of the Hotline system in Japan
Improving the compliance mind
One of the seven values in Ricoh Way that should be respected by the Ricoh Group employees is the compliance mind “Ethics and Integrity - Act with honesty and accountability.” We are conducting awareness-raising activities for all Group employees to let the thought penetrate and motivate them to have a strong sense of ethics, a law-abiding spirit and always work with a sense of integrity and responsibility.
Furthermore, we translate into English and share the information on illegal matters throughout the Ricoh Group that are reported to top management.
Response to compliance related risks
As mentioned in “Risk Management” the risks relating to violations of compliance was set up as part of the risk management items which may exert a significant influence on the group's business (operation), the risk management is carried out, with focus on preventive measures on one hand, and rapid response in the event of an outbreak of a risk on the other.
“The Ricoh Group Code of Conduct” provides for the global basic policy and specific actions, while the Group standards and Guidelines provide for items that call for further responses.
The following shows examples of responses to some of the compliance related risks.
Anti-corruption / Anti-bribery
The Ricoh Group established RGS, “Ricoh Group Standard for Bribery Prevention” in compliance with “7. Ensuring fair corporate activities”, stipulated in “Ricoh Group Code of Conduct”.
Ricoh Group Standard for Bribery Prevention
This standard sets out procedures aimed at the prevention of acts of bribery and to ensure compliance with laws and regulations prohibiting corruption and bribery such as the US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act 2010, that are applied in any of the countries and regions in which the Ricoh Group operates business, and thus facilitates the bribery prevention of Ricoh Group companies and all of their directors and employees.
At the same time, the Ricoh Group established “Ricoh Group Bribery Prevention Guidelines for Third Parties” as well, in order to prevent bribery by third parties (*) of the Ricoh Group, by informing the Ricoh Group's policy of bribery prevention.
In addition, it is defined in the Guidelines that when making political contributions or other donations or providing sponsorship, it is necessary to comply with the laws and regulations applicable to the country or region concerned when doing so and to seek the approval of the decision-making authority at each Ricoh Group company in advance.
- *
- “Third Parties” refers to organizations and individuals outside of the Ricoh Group, who provide services “for the benefit of each Ricoh Group company” or “on behalf of each Ricoh Group company”.
Political contributions, donations and sponsorship expenses
Political contributions in FY2023: JPY 0
Donations in FY2023: All donations were properly processed with the approval of executive of each division.
Prevention of bribery
In addition to the education of the Code of Conduct, the Ricoh Group has been conducting education about bribery prevention in accordance with the necessity of each region, attempting to familiarize the problems and taking preventive measures. In the United States and United Kingdom, in order to address the US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act 2010, the policy on bribery prevention and entertainment and gifts was established and the education is being provided as well.
Furthermore, in order to respond appropriately to the laws for the prevention of illegal transactions by corporations, we have been cooperating with subject matter experts such as lawyers in order to prevent any in appropriate behavior.
Prevention of participation in anti-social actions
Preventive measures are being taken, for instance, guidebooks that provide the roles of responsible departments and daily behavioral norms are established in the RGS, and articles regarding the exclusion of organized crime are incorporated in various agreements with the third parties, etc.
As a company, in cooperation with the police, corporate lawyers and other external organizations, the Ricoh Group has established a framework to response timely and appropriately towards the contact from anti-social forces.
Preventing insider trading
Because of the fact that the Group Headquarters is located in Japan, the possibility of insider trading is higher than in other regions. Thus, in Japan, education by e-learning program is provided and specific rules are established in the RGS.
In the RGS, as one of the measures to prevent insider trading with respect to the trading of stocks of listed companies of the Ricoh Group, the rule for in-advance application is established. For instance, the periods prior to stockholders' meetings or before the release of the business results, insider information is most likely to rises. Thus, these periods are designated as lock-up i.e. a closed period, for the concerned parties of the Ricoh Group, such as directors, employees, part-timers and temporary staff.
Political contributions and other spending
The Ricoh Group's Corporate Code of Conduct stipulates that we comply with the relevant laws and regulations regarding transactions with public institutions and political contributions, and that we will practice (1) strict impartiality, neither making (2) improper political contributions nor participating in election activities.
Every year, we review the significance and necessity of joining each organization and confirm that the payment of contributions is appropriate.
Ricoh's political contributions and other expenditures over the last four years are as follows:
Political contributions and other spending
(Millions of yen)
| Breakdown | FY2020 | FY2021 | FY2022 | FY2023 |
|---|---|---|---|---|
| Lobbying, interest representation or similar | 0 | 0 | 0 | 0 |
| Local, regional or national political campaigns / organizations / candidates | 0 | 0 | 0 | 0 |
| Trade associations or tax-exempt groups (ex. Think tanks) | 76.4 | 75.4 | 84.1 | 79.7 |
| Other (ex. Spending related to ballot measures or referendums) | 0 | 0 | 0 | 0 |
| Total contributions and other spending | 76.4 | 75.4 | 84.1 | 79.7 |
Major contributions / expenditures and Ricoh’s engagement
| Name of organization (Expentidures) |
Type of organization and Ricoh’s position / engagement |
|---|---|
| Japan Business Machine and Information System Industries Association ＜JBMIA＞ |
The Japan Business Machine and Information System Industries Association (JBMIA) is an industrial organization aimed at contributing to the development of the Japanese economy and the realization of comfortable office environments through the advancement of the business machine and information system industries. YoshinoriYamashita, the Chairman of Ricoh, led the association's activities as its president for two years from 2018 to 2019. More than 100 staff members from Ricoh, including those in research and development and business strategy, participate in a wide range of activities under the principles advocated by JBMIA, which propose new work styles and aim to create a vibrant global society. These activities include pursuing customer safety and security, achieving a decarbonized and circular society, and promoting international cooperation, standardization, and trade policies. |
| Japan Electronics and Information Technology Industries Association ＜JEITA＞ |
The Japan Electronics and Information Technology Industries Association (JEITA) is an organization aimed at contributing to the comprehensive development of the electronics and information technology industries—including the electronic equipment industry, electronic component industry, IT solution service industry, and all industries utilizing these technologies—so they can create new products and expand new added value. JEITA is committed to the development of the national economy and the prosperity of culture by supporting the overall development of the electronic information technology industry. Ricoh is a corporate member of this organization and actively participates in JEITA's "Responsible Mineral Procurement Study Group." Working closely with other members, Ricoh examines strategies to minimize risks related to various issues such as human rights associated with conflict minerals. Through these efforts, Ricoh ensures transparency in the supply chain and leads the industry in the practice of responsible mineral procurement. |
| Japan Business Federation ＜KEIDANREN＞ |
Japan Business Federation (KEIDANREN) comprises over 1,600 companies and organizations, including leading enterprises in Japan, national associations representing major industries, and regional economic organizations. Keidanren works towards the steady and swift realization of critical issues facing the economic sector. Additionally, it engages in dialogues with stakeholders such as political entities, government bodies, labor unions, and citizens. It also encourages corporate members to adhere to the "Corporate Behavior Charter" to establish trust and foster dialogue with governments, economic organizations of various countries, and international institutions to resolve international issues and enhance economic relations with other nations. Ricoh is a member of the Executive Committee and the Standing Board, both of which deliberate policy recommendations and reports on all activities of Keidanren. |
| Japan Association of Corporate Executives ＜KEIZAI DOYUKAI＞ |
Japan Association of Corporate Executives (KEIZAI DOYUKAI) is a private, nonprofit, nonpartisan organization founded in 1946, whose mission is to improve the Japanese economic community and seek solutions for numerous domestic issues to ensure the overall well-being of Japanese society. KEIZAI DOYUKAI membership comprises approximately 1,500 top executives, and all members discuss various issues and make policy proposals, with the common belief that corporate managers should be key players in formulating solutions for a broad range of political, economic, and social issues. There are four senior management members from Ricoh, each of whom has been actively serving as a chair or vice-chair of various policy-making committees. Yoshinori Yamashita, a Chairperson of Ricoh has been the Vice Chairman of KEIZAI DOYUKAI since 2021, and Masamitsu Sakurai, a former chairman of Ricoh, was the Chairman from 2007 to 2010. |
| Japan Machinery for Center for Trade and Investment ＜JMC＞ |
The Japan Machinery Center for Trade and Investment (JMC) is a non-profit organization established in December 1952 under the approval of the Minister of Economy, Trade, and Industry, based on the Export and Import Trade Law. Its main objective is to promote the sound development of machinery export trade. The main activities of JMC include providing member companies with the latest information and trends related to trade, offering support through seminars and training sessions, and aggregating industry opinions to make recommendations to the government. Ricoh is a member of the committee association for security trade and commerce and actively participates in activities such as improving export management and engaging in discussions on trade issues in collaboration with member companies. |
For more information about compliance categories (incidents and accidents),please see the link below.
Incident and Accident ManagementTax Governance
The Ricoh Group's tax governance is based on a tax policy approved and established by the President and CEO (hereafter CEO), the representative director of the Board behind the introduction of Ricoh’s tax transparency system.
The Chief Financial Officer (hereafter CFO), who has been delegated authority by the CEO, is responsible for the Group's specific tax policies and procedures and implements them in accordance with internal rules and regulations.
In addition, the CFO reports tax-related issues to the Audit and Supervisory Board members. The Audit and Supervisory Board members request the Accounting Auditor explanations of tax issues as necessary and confirm the status of such issues. At the same time, important business decisions are made by the Board of Directors, or the GMC (Group Management Committee) based on internal regulations regarding the existence of relevant tax issues and responses to identified tax issues.
The Ricoh Group fulfills corporate social responsibility by constantly updating these internal rules and regulations in accordance with the tax-related laws and regulations as well as the international regulations covering the rules of each country and region, and striving to maintain and improve tax compliance while paying appropriate taxes.
Country-by-Country Reporting
Please refer to the attached file (RICOH_FY2022 CbCR_en) for the RICOH Group's FY2022 CbCR, including revenues, profit (loss) before income tax, income taxes accrued, and income taxes paid.