SHARP

Sharp Group's Efforts to Firmly Establish CSR and BRM

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Adhere to the Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct

To realize Sharp's Business Philosophy and Business Creed, which represent the roots and the core of its CSR, the company has established the Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct: the principles of Sharp's corporate behavior and the standards of conduct for all directors and employees.

It is Sharp's belief that it can fulfill CSR by carrying out all its business activities based on having every director and employee of the Sharp Group fully understand and abide by the principles and standards stipulated in the charter and the code.



Various Measures for Firmly Establishing CSR Practices

Sharp has developed various measures in Japan from three perspectives, to firmly establish CSR practices (see figure below): providing training and information, providing avenues for participation, and evaluating and improving motivation.

A CSR Awareness Survey is also conducted with a questionnaire e-mailed to randomly selected employees every six months, with the results of that research being used to plan and introduce new measures. Sharp is also planning to further develop and promote measures at its overseas bases.




Promoting BRM (Business Risk Management)

In putting CSR into practice, Sharp ranks business risk management (BRM) that minimizes, mitigates, and controls business risks as an important aspect of business.

Sharp developed the Rules of Business Risk Management in 2001 as a set of internal rules governing BRM, and by sorting through and clarifying potential risks on a company-wide basis, identified more than 100 major risk items as being "specific risks." It then classified these specific risks into five areas (external business environment, financial risks, legal risks, labor risks, and operational risks). To promote application of BRM, Sharp created a Specific Risk Control Manual that organizes in a systematic way methods for minimizing and appropriately dealing with each risk, as well as proactive education and training programs to prevent such risks from actually occurring.

In addition, Sharp established the Rules of Emergency Response, detailing responses if a potential risk does come to pass. Taking prompt action when an emergency situation occurs works to minimize loss and prevent the damage from spreading not only across the company, but also to society at large. These Rules also specify action items to be implemented to ensure prompt and appropriate information disclosure to the broader community, such as stakeholders.

Sharp periodically reviews and revises these Rules and the Manual to reflect changes in society, for example, adding measures to deal with new specific risks.


Management Methods for Important Risks

Sharp promotes management methods for important risks in the company. From among the specific risks, each business and functional group further selects those important risks which possess greater impact and higher probability of occurrence within their responsible area, and tackles them as priority management risks in each group’s risk management activities.

Priority management risks area selected based on assessments of their projected level of impact and probability of occurrence. The assessment standards are set in two ways, one for functional groups/head office departments which are responsible for horizontal management of some specific risks across divisional lines, and the other for business groups/sales groups which are responsible for vertical management of the risks in the respective business domains.

At the start of each fiscal term (half-year), all groups formulate and push ahead with concrete measures intended to decrease the level of impact and the probability of occurrence of priority management risks. At the end of each term, the results are examined and validated, and reflected in selecting subsequent priority management risks and developing countermeasures for them.

Sharp is using the PDCA cycle to promote these efforts, and regards this approach as an on-going operational management system. Sharp is also aiming to further improve and enhance its policy measures to minimize and mitigate risks by firmly anchoring BRM throughout the company.

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