II. Risks in Fujitsu Group Business Activities

10. Compliance Issues

[ Overview and impact of risks ]
The Fujitsu Group conducts business globally, and must comply with relevant laws and regulations in and outside of Japan. In the event that the company infringes upon such laws and regulations, the Group may be subjected to large monetary penalties and be required to pay damages. In recent years, the demand for initiatives that respect human rights, such as the shift to obligatory due diligence on human rights in Europe, has grown even stronger. In the event that Fujitsu Group fails to prevent or reduce risks related to human rights, including the labor conditions and conflict minerals in our supply chain, it may lead to the loss of business opportunities and the loss of public trust in the company due to administrative penalties, which may affect the Group’s business. In addition, if an event that infringes upon human rights occurs in a business that utilizes AI technology, which has become widespread, it may lead to the payment of compensation and a decline in the societal trust of the Group.

[ Measures against the risks ]
The Fujitsu Group, through the Fujitsu Way, has established a code of conduct that all of the Group’s employees must observe (respect for human rights, compliance with laws and regulations, and fair business practices). The Fujitsu Group has also instituted uniform Global Business Standards (GBS), which provide more detailed guidelines for the actions of individual employees, and is working to instill and enforce the company’s internal rules and foster a corporate culture where they are regularly followed.

In order to promote the establishment of these internal systems and mechanisms, the company sends out messages from the CEO and conducts regular e-learning programs. In regard to respect for human rights, since fiscal 2021, we have conducted an e-learning program on business and human rights for all Group employees, and in fiscal 2022, we conducted a human rights impact assessment, as well as a process of human rights due diligence. In accordance with the latest international trends, we have compiled risks related to human rights, identified proprietary issues based on their importance and relevance to business, revised the Fujitsu Group’s human rights policy, and have made this information known to the company and our suppliers.

In the AI business, in order to maintain and secure trust in AI, the Group has established a practical AI ethical governance system based on the Fujitsu Group AI Commitment, the group's AI ethical guidelines.

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