Execution of compliance audit

We currently perform compliance audits as part of the regular audits conducted by our Internal Auditing Office. Audit items are general control monitoring and compliance checks shown below.

1. Establishment of a firm's management rules and its internal rules
2. The management of seals
3. Approvals, licenses and reports
4. The absence of any bribery, improper transactions or acts detrimental to society
5. Licenses required to perform specific work and licenses to operate vehicles
6. The protection of personal information
7. The management of the environment

In fiscal 2008, we performed compliance audits at the East Japan Division and at the West Japan Division (now merged into Japan Division) and at five group companies in Japan, including Hitachi Kenki Logistics Technology and Takomu Manufacturing, and at four group companies outside Japan, including Hitachi Construction Machinery (Europe) and Hitachi Construction Machinery (Malaysia) . We consider that our Compliance and Risk Management Division perform compliance audits independently from fiscal 2009, in order to increase the frequency of such audits.

Please send us your opinions and impressions concerning this article.