Compliance

The Fuji Electric Group Compliance Program consists of the Fuji Electric Group Compliance Regulations as well as the four components of internal rules, monitoring, oversight, and education for each regulatory environment within Japan and overseas. The Group promotes strict global compliance through the implementation of compliance activities at all Fuji Electric Group companies in Japan and overseas.

The Fuji Electric Group Compliance Promotion Committee meets twice a year to discuss results and plan specific compliance activities for the Fuji Electric Group. The committee is chaired by the Fuji Electric director responsible for compliance, and includes outside experts (lawyers) and other managers responsible for compliance.

In addition, the Fuji Electric Group CSR Charter has been formulated as a basic code of behavior for all Fuji Electric Group employees around the world, to aggressively promote global compliance.

Nevertheless, the Company received a correction notification from the Tokyo Regional Taxation Bureau for corporate income taxes on consolidated income for the period from April 2004 through March 2008, and in July 2009 paid additional taxes on this income.

The Fuji Electric Group takes this situation very seriously, and along with implementing corrective measures, has issued internal sanctions and public announcements concerning the parties and supervisors involved, and has formulated internal rules, strengthened daily oversight, and implemented internal training to prevent a reoccurrence, placing a renewed emphasis on strict compliance.

Risk Management

Based on the Fuji Electric Group Risk Management Regulations, which were formulated in May 2006, the various risks that could affect the Group are recognized and evaluated in a coordinated, systematic manner and are appropriately managed and processed. Moreover, the Group works to minimize any negative impact on corporate value by preventing the occurrence of riskrelated events and minimizing losses should they occur. Specifically, major risk factors are quantified in each business segment’s annual business plan, and these are monitored at the time of each quarterly inspection. In particular, the magnetic disk business requires large amounts of investment, and given the high degree of volatility in the business, the risk of not being able to recover that investment makes it important to quickly identify and swiftly respond to market and customer trends.

The Fuji Electric Group Contingency Plan for Emergency Situations was formulated in 2005 to prepare responses in the event of a major natural disaster, a serious product-related incident or accident that causes severe personal injury, an outbreak of an infectious disease, or other emergency situation. This plan sets the guidelines for emergency responses, including designating the director in charge of crisis management, communication channels, and the establishment of task forces. In fiscal 2009, a Group emergency task force was established to address the new type of influenza virus. Guidelines were implemented to put the highest priority on maintaining the safety of all employees, and efforts were made to prevent a mass outbreak and to prevent the spread of the virus. In addition, other guidelines including the Disaster Guidelines and the Response Guidelines for International Emergency Situations have been created.