Corporate Social Responsibility
CSR VisionAs a new financial services group in step with the needs of the 21st century, SMFG’s goal is to earn the highest trust of society by meeting the public’s expectations and fulfilling its social responsibilities.
Earning the highest level of trust requires the balanced provision of value to our four constituencies: customers, shareholders and the market, the environment and society, and employees. Through this process, we aim to contribute to the sustainable development of society as a whole, and to fulfill our corporate social responsibility.
Our framework for fulfilling our obligations to society is described in the Risk Management section and the Business Overview section, as well as the following pages. The main points are as follows.
First, we will prosper together with our customers by offering high value-added products and services.
Second, we will maintain sound management through the further enhancement of our management structure. To this end, we will further strengthen our capabilities in corporate governance, internal audits, compliance, risk management, information disclosure and other aspects of our business.
Third, we are committed to making continuous efforts in social contribution activities and environmental initiatives, to realize a better society and help preserve the integrity of the environment. Fourth, we foster a free and unrestricted working atmosphere that emphasizes respect for individuals and allows employees to realize their full potential.
To reinforce CSR activities, SMFG has established the Group CSR Committee, and has also set up a Group CSR Department within the Corporate Planning Department.
At SMFG, as shown below, we have set out our Business Ethics, as the principles of corporate social responsibility that apply to the entire Group.
<Commitment to CSR by SMFG and SMBC>
In December 2005, SMBC received a cease and desist order from the Fair Trade Commission of Japan, and in April 2006, an administrative order from the Financial Services Agency, with respect to the manner in which it marketed interest rate swaps to a number of corporate borrowers in the past.
The management of SMFG would like to take this opportunity to apologize sincerely to all the customers and shareholders of the Group. SMFG takes this matter extremely seriously, and, as part of its role as the holding company, is taking steps to strengthen its system of supervising the operational management of Group companies, to ensure that said management is carried out appropriately. Specifically, we will implement two measures:1) To enable SMFG to more effectively conduct its oversight functions as a holding company, we will establish a Group Business Management Office, whose responsibility will be to verify the appropriateness from the legal and ethical compliance perspective of all business management decisions made by Group companies; 2) We will take steps to ensure that Group companies are audited even more rigorously by the Audit Department.
Business Ethics
- Satisfactory Customer Services
We intend to be a financial services complex that has the trust and support of our customers. For this purpose, we will always provide services that meet the true needs of our customers in order to obtain their satisfaction and confidence in the Group. - Sound Management
We intend to be a financial services complex which maintains fair, transparent, and sound management based on the principle of self-responsibility. For this purpose, along with obtaining the firm confidence of our shareholders, our customers, and the general public, we take a long-term view of our business and operate it efficiently, and actively disclose accurate business information about the Group. Through these procedures, we will maintain continuous growth on a sound financial basis. - Contribution to Social Development
We intend to be a financial services complex which contributes to the healthy development of society. For this purpose, we recognize the importance of our mission to serve as a crucial part of the public infrastructure and also our social responsibilities. With such recognition, we undertake business operations that contribute to the steady development of Japan and the rest of the world, and endeavor, as a good corporate citizen, to make a positive contribution to society. - Free and Active Business Environment
We intend to be a financial services complex for which all officers and other employees work proudly and with great spirit. For this purpose, we respect people, and train and produce employees with professional knowledge and ability, thereby creating a free and active business environment. - Compliance
We intend to be a financial services complex that always keeps in mind the importance of compliance. For this purpose, we constantly reflect our awareness of these Business Ethics in our business activities. In addition, we respond promptly to directives from auditors and inspectors. Through these actions, we observe all laws and regulations, and uphold moral standards in our business practices.
