Social Responsibility

Internal Controls

Konica Minolta has been taking steps from early on to create stronger internal controls to ensure complete compliance.

Internal Control Measures

The Konica Minolta Group has put in place thorough internal controls in order to avoid incidents resulting from a lack of compliance.

Given the increasing number of corporate scandals in recent years, any lack of corporate ethics has become a matter of grave social concern. To prevent misconduct by companies, there is a demand for the establishment of strong internal control systems. It was in this context that Japan's Company Law, which stipulates rules about internal controls, took effect in Japan in May 2006.

Before the Company Law took effect, the Board of Directors of Konica Minolta Holdings, Inc. adopted a resolution concerning internal controls on April 27, 2006, of which outline was published in the annual securities report for fiscal 2005 ended March 2006.

In addition, Konica Minolta decided that resolutions pertaining to internal controls should be adopted by respective Board of Directors at all direct subsidiaries of Konica Minolta Holdings, including even those subsidiaries to which the definition of "large companies" in Japan's Company Act does not apply. Given this decision, such resolutions were duly adopted by each Board of Directors of all direct subsidiaries of Konica Minolta Holdings as well as Group companies that do qualify as "large companies" in Japan's Company Act.

At Konica Minolta, we strive to ensure the legality, rationality, and efficiency of our business operations by reviewing and revising, as occasion demands, our supervision and operational systems pertaining to all business activities across the Group.

Complying with Japan's Financial Instruments and Exchange Law

We are promoting Group-wide mechanisms to ensure proper accounting practices.

As part of worldwide efforts to prevent improper corporate accounting practices, the Japanese Financial Instruments and Exchange Law (J-SOX) came into effect in fiscal 2008. The Konica Minolta Group of consolidated companies, including subsidiaries in Japan, has implemented measures to comply with this law in four phases. Phase one covered the overall planning and was completed in fiscal 2006. The next three phases were completed in fiscal 2007. Phase two covered the documentation of internal controls, phase three involved evaluation of the design and operation of business processes, and phase four took care of identifying and resolving the deficiencies discovered in the phase three evaluation. Currently, the implementation system has been put in place, and evaluation of internal controls is being carried out. Konica Minolta will continue to promote Group-wide efforts to create mechanisms to prevent any errors by reviewing the report preparation process, and will publicize the efficacy of the reporting process.