Sumitomo Dainippon Pharma Annual Report 2017

For targeting increased medium- to long-term corporate value, we are building out our business foundation by strengthening our corporate governance system, promoting organizational reforms, and bolstering our human resources.Could you give us some insight into your thinking and concrete initiatives for strengthening corporate governance and the business foundation?A4Q4Toward achieving our Corporate Mission, we are dedicating efforts to promoting employee “work style innovations” and contributing to global health.Please tell us about your basic approach to CSR-based management and the initiatives that you have focused on in recent years.A5Q5Also for targeting increased medium- to long-term corporate value, we are constantly working to fortify our corporate governance systems. In October 2015, we formulated the Basic Policy on Corporate Governance and, in April 2016, we established the Corporate Governance Department to effectively deploy that policy. In 2017, we added one Outside Director with the objective of facilitating sustainable growth and enhanced medium- to long-term corporate value by making our Board of Directors more diversified and by strengthening governance. We also formulated the DSP Group Risk Management Policy, in January 2017, in order to further coordinate our risk management system as a corporate group. We reorganized our risk management systems so that, according to the particularities of each risk, risks are divided into those requiring a horizontal, group-wide approach, and those requiring specific approaches by each company.At the same time, in order to further fortify our business foundation, we are continually working both within and outside of Japan to bolster our organization and our human resources. In Japan, where the business environment is particularly difficult, we offered early retirement to employees and implemented measures to streamline our sales organization in fiscal 2016. In April 2017, we created the position of Global Head of Oncology as one step toward establishing a framework to strengthen our global oncology business. With regard to integrating our domestic production sites, we brought our initial plans forward and now expect to implement them by the end of fiscal 2018.To strengthen our corporate foundation, we also introduced a new personnel system, effective April 2016. This system emphasizes employees’ abilities to produce results and is a new measure for further developing our human resources. In addition to our existing managerial positions, we established a new career path for promotion of employees with a strong ability to produce results by leveraging their advanced expertise.In terms of fostering human resources, we also created the DSP Academy, which is a career grade-specific training system. From young employees to mid-career employees and managers, personnel in four grades are selected for their ambition and potential, and then provided with training using case methods, action learning, and various other types of instruction.Sumitomo Dainippon Pharma believes that the very objective of our CSR-based management is implementing our Corporate Mission to “broadly contribute to society through value creation based on innovative research and development activities for the betterment of healthcare and fuller lives of people worldwide.” In April 2017, we revised our Declaration of Conduct, which is a set of guidelines to help each and every director and employee implement our mission. We are also working to enhance awareness throughout the Group about environmental changes in society and in our industry, and further reinforcing business ethics.As one component of CSR-based management, we are Message from the President17Sumitomo Dainippon Pharma Co., Ltd. Annual Report 2017

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