Internal Control That Promotes the Undertaking of Bold Challenges
JR East Group’s Basic Approach to Its Internal Control System
Systems and Mechanisms to Support and Encourage the Taking On of Bold Challenges
We have established systems and mechanisms that proactively
support and encourage employees to take on bold challenges
to develop the JR East Group and increase its value, and we are
constantly reviewing and improving them.
To encourage employees to take on bold challenges in their daily
work, we share best practices throughout the Group through
communication tools that can be viewed and posted by all
Group employees, and we also conduct employee engagement
surveys. We are working to create an environment that fosters
employee initiative and motivation by identifying the percentage of
employees who responded positively to “employee creativity rate”
in the survey.
We also actively communicate with frontline employees through
opinion exchange meetings, discussions, and on-site visits, with
the aim of spreading the management vision.
Percentage of employees who gave positive answers to relevant items in the engagement survey
Basic Approach to Risk Management
For the Group to improve profitability and undertake structural
reforms, we recognize the importance of broad-view risk
management that considers risk*not only from the perspective of
reducing negative factors such as avoiding losses but also from
the perspective of proactively increasing the value of the Group.
We have established and operate internal controls in accordance
with the Companies Act and the Financial Instruments and
Exchange Act to ensure stable and proper business operations,
while also working to develop the Group and support and
encourage the taking on of bold challenges aimed at enhancing
value and growth.
- *These include not only risks related to compliance, safety assurance, and natural disasters, among others, but also those related to market changes, trends of our competitors, social and economic conditions in Japan and overseas, and management decisions related to new businesses.
Risk Management Initiatives
- *1Challenge risks are risks that should be considered when implementing new measures or entering new businesses.
- *2Environmental change risks are risks that increase in importance with changes in the business environment.
Tax Transparency Initiative
JR East Group has established a Group Policy on Tax Transparency to ensure that we pay taxes appropriately, which is one of our responsibilities as a corporation, while also managing tax risks appropriately and aiming to enhance our corporate value. We will also comply with tax-related laws and regulations in all countries and regions in which we do business and build a highly transparent tax governance system.
Strengthening Collaboration with Group Companies through Part-time Officers
To improve governance across the entire Group and achieve
consolidated cash flow management by business unit, we are
working to strengthen communication with Group companies
through part-time officers who are dispatched to Group
companies. The officers are provided with “key points to bear in
mind,” which summarize their roles and responsibilities.
Each part-time officer reports to the head office on the status and
implementation of initiatives, and by acting with an awareness
of key points, they stimulate communication throughout the
Group, which leads to improved governance, the realization of
consolidated cash flow management, and enhanced corporate
value.
Basic Approach to Compliance
Based on the Policy on Legal and Regulatory Compliance and Corporate Ethics, the JR East Group has established a Compliance Action Plan that outlines how we should behave as a corporation and as members of society. While building trust with all stakeholders, we comply with all related laws in our various business fields, such as Mobility services and Lifestyle Solutions services, and we conduct business in accordance with our corporate ethics.
Key Compliance Initiatives
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Basic Policy for Information Security
System to Promptly Detect and Respond to Cyberattacks
Security Operation Center (SOC)
- Establishment of an SOC to monitor suspicious communications targeting the JR East Group
- Configuration of a framework that can analyze suspicious communications and escalate them in a timely manner
JR East Endpoint Security Service (JRE-ESS)
- Deployment of integrated security products with virus detection and SOC coordination functions to each computer within the JR East Group
- Addressing of the increasing security risks associated with the expansion of remote working
Information Security Initiatives
Security Education and Training
- Education for all employees to raise their awareness of cybersecurity
- Training for employees in each position within the implementation framework
- Ongoing response training at each Group company to prepare for a security incident
10 Principles of Information Security
- Distributed to each JR East Group employee as a set of rules that every employee must observe
Personal Data Protection Initiatives
Pursuant to applicable laws and regulations, including personal information protection legislation both in Japan and overseas, we are working to reduce the risk of data breaches by strengthening our personal information management system and reviewing our rules.
- Publication of Basic Policy for Personal Information Handling
- Formulation of internal regulations such as personal information management regulations
- Operational audits conducted at least once a year at all locations
- Publication of privacy policies in response to legislation in the European Union, the United Kingdom, and California, among other jurisdictions
- Regularly scheduled education and training through compliance and information security education and other such programs for all employees