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Sumitomo Electric Strengthens Its Competition Law Compliance System |
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June 18, 2010
Sumitomo Electric Industries, Ltd. |
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In May 2010, Sumitomo Electric Industries, Ltd. received a notice from the Japan Fair Trade Commission (JFTC) ordering the Company to cease actions that violated the Antimonopoly Act in selling its optical fiber cable and related products, to take measures necessary to prevent recurrence of the violation, and to make payment of administrative surcharges. In February this year, Sumitomo Electric was also subjected to an on-the-spot investigation by the JFTC in regard to the trade of its automotive wiring harness and related products.
We sincerely apologize to our customers, shareholders and all other parties concerned for causing anxiety and inconvenience.
Taking these administrative actions very seriously, as a way to signal its commitment to regaining trust, Sumitomo Electric has implemented partial return of executive remunerations and taken in-house disciplinary measures such as demotion of employees concerned.
Moreover, we have taken and will take the following measures to enhance our competition law compliance system. All employees and officers at the Sumitomo Electric Group are firmly resolved to eliminate violations and prevent recurrence by ensuring thorough implementation of these measures with one accord. |
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- 1. Intensively conduct special training programs [Already implemented]
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Every year, Sumitomo Electric organizes regular compliance training programs for officers and administrative members. This year, special training programs on compliance with competition laws were conducted intensively from February through May for all members of Sumitomo Electric and its subsidiaries in Japan excluding employees working at manufacturing sites (81 sessions were held in 40 locations nationwide for 5,000 participants in total).
The Company continues to provide competition law compliance training on a regular basis. |
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- 2. Develop competition law compliance rules
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As of today, Sumitomo Electric has newly established Competition Law Compliance Regulations, which contain provisions restricting contact with competitors.
To increase the effectiveness of these regulations, each department and division will develop its own rules and structure for administering these regulations in consideration of the activities of the department or division. By doing so, the Company intends to create an environment free from violation and even from suspicion of violation. |
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- 3. Establish action guidelines for competition law compliance
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The Company already has the Sumitomo Electric Employee Compliance Manual and other procedures in place. To more clearly specify prohibited conduct and matters to be observed, Competition Law Action Guidelines will be established. These guidelines will also cover foreign competition laws. We will spare no effort to ensure that these guidelines are fully understood through training, particularly among members of Sales Groups.
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- 4. Form dedicated organizations and establish an auditing system
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(1) |
As of today, Sumitomo Electric has established the Competition Law Compliance Office in its Corporate Staff Group, and appointed a competition law compliance manger for each business unit. As a unit of the head office, the Competition Law Compliance Office is exclusively responsible for promoting compliance with competition laws. It will engage in the enforcement of the Competition Law Compliance Regulations, monitoring and auditing of the status of compliance with competition laws, the Regulations and rules for administering these regulations at each department and division, and the planning and organization of training and other programs.
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(2) |
As of today, Sumitomo Electric has also established the Sales Compliance Office in the Sales Group. In cooperation with the Competition Law Compliance Office, the Sales Compliance Office will engage in the development and enforcement of manuals and rules on electric wire-related sales and marketing activities; evaluation of the status of compliance with competition laws using check sheets that all employees are required to submit on a regular basis and through interactive communication; monitoring of the status of participation in competitive bids; and auditing of the status of compliance with the Regulations and the rules for administering those regulations. |
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