Governance, risk management and internal controls

Basing business on transparency, trust and accountability

From a simple handshake to a complex contract, business has always been built on a foundation of trust and mutual understanding. As laws and regulations have grown more sophisticated, so too have the pace, dynamism, and complexity of the business environment. As a result, the need for ethical, trustworthy business practices and robust governance processes has become even more essential.

We put responsible and ethical business practices at the heart of our business

Through our sustainable and ethical business conduct, we aim to create economic, environmental, and social value in equal measure. We aim to be a company that works to solve environmental and social problems while achieving business growth.

Corporate governance

An integral part of our organisation, corporate governance enables us to conduct business effectively, efficiently and in full alignment with internal and external rules and regulations. Our corporate governance ensures:

• Adequate information and communication
• Effective policies and procedures to conduct business
• Clear distribution of authorities
• Effective and efficient monitoring
• A transparent and successful pan-European management structure

It incorporates:

• An internal control system that supports management and organisations to achieve their business objectives
• A risk management system that helps to safely navigate a challenging global business environment while keeping an eye on opportunities
• A compliance management system that ensures we are 'good corporate citizens'

Through strong and transparent governance, we apply sustainable and responsible business practices, and so fulfil our social responsibilities and achieve our environmental goals.

Framework for conducting business

A robust system of policies and procedures comprises our framework for conducting business in a shifting economic, political and social environment. The framework includes (among others):

• Human Rights Policy
• Supplier Code of Conduct
• AI Policy
• Anti-Money-Laundering Policy
• Anti-Fraud/Corruption Policy
• Whistleblowing Policy
• Occupational Health & Safety Policy
• Data protection and GDPR policy

Additionally, effective export control procedures ensure that we comply with prevailing sanctions and embargoes.

We practise transparent and accountable business management

We monitor and manage our business based upon an effective reporting system as well as a comprehensive, efficient meeting structure:

• Local management meetings at the level of each National Operating Company (NOC) as well as Konica Minolta Business Solutions Europe GmbH are supplemented by regional meetings at a cluster level or on the level of so-called “virtual NOCs”
• Pan-European discussions as part of Key Country Meetings
• Management Board Meetings and European Management Conferences

Adequate authorisation policies and guidelines ensure that the decision-making process is clear and transparent, all necessary parties are involved, and decisions are taken by the right people at the right time.

We are the owner or the majority shareholder of almost all European Konica Minolta subsidiaries. To execute our shareholder rights and obligations appropriately, we're represented on all the Boards of Directors of the respective European subsidiaries. Our duties and obligations are collaboratively administered and maintained between the subsidiaries and the European headquarters.

Compliance first

“Compliance first” is the clear demand from our CEO, Tom Taiko, as it was from previous CEOs.

Compliance is an inherent part of how we do business and how we deal with our stakeholders. We continually strive to stay on top of legal and regulatory developments, as well as any potential challenges and issues. We do this through:

• Quarterly compliance reporting
• A robust network of compliance-responsible individuals in each subsidiary
• Close alignment with the Konica Minolta, Inc. Corporate Compliance Group
• Regular exchanges with the Regional Compliance Coordinators of the Americas, APAC and Australia

Our comprehensive online compliance training programme, which must be completed annually, is the strong backbone of our compliance management system.

Internal controls

Effective internal controls guarantee transparency, ensure accountability, and help to achieve business objectives and manage organisations successfully. As part of our efforts to continue improving our system of internal controls, we're undertaking:

• The annual J-SOX compliance process (Internal Controls over Financial Reporting)
• The annual Internal Control Self-Assessment, conducted in close collaboration with Konica Minolta, Inc.

Risks and opportunities

We maintain a risk management system (aligned with Konica Minolta, Inc.) that provides a framework for our European headquarters to manage key risks, while giving our subsidiaries sufficient independence to identify, document and address risks.

Risks are evaluated twice a year, and the respective countermeasures are reviewed and, if necessary, adjusted once a quarter.

Recognising that risk and opportunity are two sides of the same coin, we understand risk management not just in a preventive context, but also as an effective tool to proactively identify opportunities. Our risk management processes allow us to take conscious, risk-based decisions.