Governance Initiatives

Corporate Governance

Basic Views on Corporate Governance

Japan Lifeline’s management philosophy is to contribute to the realization of a healthy society through the latest optimal medical device technologies.

Based on this philosophy, the criteria used in Japan Lifeline’s corporate activities are: "Is it appropriate for patients?", "Is it in compliance with laws and regulations?" and "Is it reasonable as a business?"

Only by properly complying with these standards will Japan Lifeline be able to fulfill its role as a public entity of society, and it will be able to continue to exist and grow as a company.

As a result, Japan Lifeline believes that it can be recognized as a valuable company by shareholders and other stakeholders.

To this end, Japan Lifeline will enhance its compliance and risk management systems to ensure sound management and build a management system that can respond quickly and accurately to changes in the business environment.

Corporate Governance Structure

Corporate Governance Structure

Corporate Governance Report

Further details on our corporate governance.

Compliance and Risk Management

Compliance System

We have established a compliance system based on our Compliance Promotion Regulations. Specifically, the Chief Compliance Officer (Vice President, General Manager of Human Resources & General Affairs Department) and the Compliance Committee are playing central roles in this effort.

In the case of the occurrence of compliance violation, it will be promptly reported to the Compliance Committee and the Chief Compliance Officer for appropriate action and correction.

Risk Management System

We have established a risk management system based on the Risk Management Regulations. Specifically, we have built a company-wide risk management system led by the Chief Risk Management Officer (Senior Vice President, Executive Manager of Corporate Administration Headquarters) and the Risk Management Committee.

If a serious risk arises that requires a company-wide response, a task force headed by the President and CEO as the Representative Director will be established to take prompt action and keep losses to the minimum.

Internal Reporting System

We have established ""JLL Group Helpline," a compliance reporting helpline utilizing an external organization, as a contact point for the internal reporting system for employees. The Compliance Committee shares the details of the received reports. If necessary, the information is promptly reported to the vice president in charge, and action is taken ensuring that the informant does not suffer any disadvantage.

To inform employees of "JLL Group Helpline," cards introducing the contact point are distributed to employees, and explanations about it are also given at new employee training sessions. We also have contact points in our overseas subsidiaries, where support is given in English, Chinese, and Malay.

Preventing Corruption

Our business involves a lot of interactions with public officers and medical professionals. Thus, when outsourcing or remuneration is involved, we strictly monitor to ensure that fair and equitable relationships in accordance with the rules set by the industry is maintained.

Our website discloses "Guidelines for Transparency in Relationships between Corporate Activities and Medical Institutions, etc." as a guideline for transparency and the payments that are subject to disclosure can be also seen there.

https://www.jll.co.jp/privacy/transparency.html (Available only in Japanese)

In addition, in response to the expansion of our business overseas, in December 2019, we restructured our existing regulations and prepare and enforce the Bribery of Foreign Public Officials Regulations to ensure thorough control over bribery of foreign public officials.

Disseminating Information to Employees

We distribute a handbook on compliance to all employees to ensure that they are fully aware of the importance of compliance. We also conduct training for new employees and e-learning once a year to foster compliance awareness continuously. Compliance training also covers ethics laws for public officials, etc.

In addition, with the enforcement of the law related to the prevention of “power harassment” in June 2020, we are reinforcing the theme of harassment in our compliance education from fiscal 2020.

Discussions are underway for the implementation of compliance training at overseas sites, including multilingual training.

BCP(Business Continuity Plan)

Measures Based on the Location of the Bases

As for natural disaster risks, our damage assumptions are mainly based on the assumption of an earthquake directly below the Tokyo metropolitan area and river flooding.

Since our Toda Factory is located near the Arakawa River, the risk of flooding was taken into consideration from the design stage of the factory, and the floor height of the first floor was raised in order to prevent the production facilities from being submerged and to prevent flooding of the second floor and above. In addition, measures have been taken in consideration of the risk of river flooding, such as installing manufacturing equipment on the second floor and above and placing cleanrooms on the third and fourth floors.

For our Oyama Factory, we checked hazard maps and other data to determine areas that would be less likely to be affected even if other factories were to be damaged. The location was considered based on the fact that there are few natural disasters and the distance would not interfere with business operations.

In addition, we have factories in China and Malaysia, as well as outsourcing assembly to partner companies in Japan and overseas, in order to diversify risks in our production system.

To prevent crime as well as flooding due to disasters, offices must meet the new earthquake resistance standards and must be located on the second floor or higher of an office building.

Formulation of BCP (Business Continuity Plan)

To supply products to patients even in the event of a disaster, we have established basic rules for business continuity with the aim of quick restoration of sales, distribution, and manufacturing operations, and have formulated a BCP.

Even if a disaster occurs and our products cannot be supplied to hospitals due to the disruption of logistics, it is expected that hospitals will be able to provide some alternative medical care. However, considering the burden on patients, it is important that we do not lack the supply of our products in order to avoid situations where minimally invasive treatment are not provided.

Currently, inventories of products are managed at the distribution centers of our contractors in principle, but we also store a small number of them at our sales offices nationwide. Since some of our products are used by patients who require urgent care, we have registered some of our company cars as emergency vehicles and we expect to utilize those cars in the event of an earthquake etc.

Information Security

Information Security Management

We have established Information Security Management Regulations and an information security management manual and are making efforts to manage information related to our business.

In terms of management, we have established an information security system headed by the President and CEO as the Representative Director. We have established an Information Security Committee chaired by the Chief Information Security Officer (Vice President, General Manager of Human Resources & General Affairs Department) and an internal CSIRT to formulate and implement countermeasures in the event of an incident. They manage in cooperation with the information security officers of each department and the Security Operation Center (SOC), an external specialized organization.

In the event of a major incident related to information security occurs, we ensure internally that reports from each department are promptly shared to top management.

Corporate Governance Structure

Information Security System Chart

Management of Important Information Related to Business

The information we must manage includes patient information and manufacturing design information, in addition to general confidential information. Personal information is managed in accordance with the Regulations for Handling Personal Information, and the privacy statement and basic policy for specific personal information are published on the website.

https://www.japanlifeline.com/privacy/

https://www.jll.co.jp/privacy/personal.html (Available only in Japanese)

There are cases when we obtain information about patients who have used the products we handle, as well as information about individuals that will be included in materials for "Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices."

In addition to taking care of the way of storing this information in order to block access from the outside, we limit the number of employees who have access to the information. We also keep an access log and take other necessary physical and technical measures for security management.

Disseminating Information to Employees

We are focusing on education and training so that each employee can act with a heightened awareness of information security. For new and mid-career employees, we focus on information security topics in training for new employees. We also trying repeatedly to ensure thoroughness by providing e-learning for all employees twice a year and holding irregular web conferences.

For business devices such as PCs and smartphones, we have taken various measures such as remote locking in case of loss, data encryption, and limited authentication methods.

In addition, since information leakage via e-mail has become a social issue recently, we have started to conduct e-mail trainings regularly for our employees to raise awareness.

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