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4 - 5 Compliance

Compliance refers to measures by which companies “comply with laws, regulations, rules, social norms, etc.” Compliance can be seen as the creation of systems by which all members of a company, from top management to employees, observe the corporate ethics/morals,

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observe numerous laws and rules related to corporate activity in accordance with corporate philosophy (management philosophy), and detect and rectify violations at an early stage.

[Components of compliance]

• • CSR (Corporate Social Responsibility)
  In corporate activities, CSR refers to the responsibilities that a company should fulfill with respect to social conditions and to various demands from citizens, regions, etc.
• • Corporate governance
  This refers to measures for the purpose of sound management activities, to enable companies to earn the trust of customers and markets.
• • Internal control
  Internal control refers to mechanisms within a company or other organization by which the organization constructs and operates systems for the appropriate execution of its business.
• • Respect for human right
  This refers to activities that respect and protect people’s rights as human beings. This includes compliance with the Act on the Protection of Personal Information to protect the rights of customers, pursuit of the work-life balance and the mental health, and the observance of the Labor Standards Act to protect the human rights of workers.

(1) System Management Standards

System Management Standards are practical guidance for organizations to establish effective information system strategies; to carry out effective information system investment within the life cycle of information system planning, development, operation, and maintenance; and to appropriately improve and operate controls to reduce risk. System Management Standards note the following concerning compliance.

(i) Establish an organization for legal and regulatory compliance and appoint management for it. (ii) Identify applicable laws and regulations to the organization, and inform and educate stakeholders. (iii) Define the information ethics, and inform and educate related persons. (iv) Establish policies concerning processing of personal information, protection of intellectual property rights, and provision of information disclosure. (v) Assess level of compliance with laws, regulations, and the information ethics, and take necessary actions for improvement.

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In addition, System Management Standards I. Strategic IT Plan, “1-3 Development of the total optimization plan”, notes that “Consider compliance requirements in the development of the total optimization plan.”

(2) Software Management Guidelines

Software Management Guidelines are a collection of matters that corporations, organizations, etc. should implement to prevent the illegal duplication of software. Since illegal reproduction of software constitutes a serious violation of compliance (i.e., infringement of the copyright law), organizations must enforce software management in accordance with these guidelines.

[Basic matters in Software Management Guidelines]

• • Basic matters that corporations, etc. should implement
• • Matters that persons responsible for software management should implement
• • Matters that software users should implement

(3) Export Control Internal Rules

[Internal Rules Concerning Compliance with Export-Related Laws and

Regulations]

Export Control Internal Rules refers to a compliance program (i.e., a plan for compliance with laws and regulations by companies) that are promoted by the Ministry of Economy, Trade and Industry. Prior to the export of computer-related products, etc., organizations are required to confirm that cargo specifications, export destination, means of use, and other matters are not in violation of laws and regulations, in order to prevent misuse of the exported goods overseas as arms or weapons. While items prohibited for export are stipulated by the Foreign Exchange Act and other regulations, the Export Control Internal Rules were established because errors can easily occur under the further involvement of the U.S. EAR (Export Administration Regulations), etc.

• • Foreign Exchange Act [Foreign Exchange and Foreign Trade Act]
  This is a law that, on the basis of freedom of foreign exchange, foreign trade, and other foreign transactions, enables the proper development of foreign transactions and the maintenance of peace and security in Japan and in the international community through the minimum necessary control or coordination, and thereby ensures equilibrium in the international balance of trade and currency stability, and at the same time, to contribute to the sound development of the Japanese economy.

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(4) Information ethics and engineer ethics

Ethics (or morals) are an awareness of compliance with law, and represent a path that humans should continue to preserve. The ethics of persons involved in corporate activities take on particular importance in the area of compliance.

• • Information ethics (information morals)
  This refer to the ethics that are deemed necessary for involvement with information (or IT). These ethics include heeding the Intellectual Property Rights Act, the Act on the Protection of Personal Information, the Act against Unjustifiable Premiums and Misleading Representations, and other laws and regulations, and following information communications manners, or “netiquette,” for using the Internet.
• • Engineer ethics
  These are the ethics that are required of engineers. Professionalism (i.e., the ethical sense as a professional), with an awareness of engineers’ social responsibilities as professionals on the basis of a code of ethics (i.e., a policy of ethical legal compliance) for engineers, is required.