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        | 
 Annual
                Report 2006
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                |  | ACTIVITY
                        RESULTS IN 2005FY |  |  
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      | Fiscal 2005Report of the “Research Committee on the Risk Governance of Industrialized
          Society and the Culture of Safety”
 
            
              
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                | Project sponsored
                      by the Japan Keirin Association |  
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                | The summary of the Report on the captioned
                    Research Committee is shown below: |  
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                | Despite safety measures continuously adopted in the industry
                  and other sectors, we find the rise of serious accidents occurring
                  at the manufacturing sites or at the time of product usage.
                  The background of such strings of accidents can be the progress
                  of sophistication, diversification, and globalization of industries,
                  streamlining of corporate management, and vast changes in social
                  systems. If corporations are to ensure the safety of their workplaces
                  and products under such situation and to respond to the diversified
                  needs of the market, they must ensure the transparency in corporate
                  activities, and account for their actions, including various
                  measures to solve environmental and safety problems, while
                  improving the efficiencies of corporate management. In recent
                  years, the forerunners of corporations have started to focus
                  on the concept of corporate social responsibilities (CSR).
 Consumers, on the other hand, start to take greater interests
                  in the products themselves and the manufacturing processes
                  of such products from the information provided by corporations,
                  as they become more environment and safety-conscious. Their
                  attitude is gradually changing to take more interests in understanding
                  corporate actions through dialogues with corporations, in order
                  to enhance safety in cooperation with corporations.
 In order to reduce the risks on product usage and to ensure
                  safety, every stakeholder related to the product safety, including
                  consumers, society, and administration, need to play a role
                  required for each position.
 For example, corporations must voluntarily adopt safety measures
                  as the professionals with expertise in products and technologies,
                  and consumers need to take initiatives in securing the safety
                  in product use when using the products manufactured by corporations
                  in conformity with the safety regulations set forth by the
                  government, while maintaining and enhancing strong mutual relationships
                  with corporations, governments, and the society.
 For this, it is extremely important to share and exchange
                  safety information. Corporations must actively disclose safety
                  information at appropriate times and consumers need to properly
                  understand the concept of risks involved, to learn how to make
                  judgment in balance of benefits and risks, and to objectively
                  comprehend the safety information given to them.
 Up to now, corporations have made efforts to maintain the
                  safety in manufacturing and of products under the safety regulations
                  set forth by the governments. In the future, however, there
                  will likely be the development of new and varied risks involved.
                  Therefore, to enhance safety in the industrial society, it
                  is important not only to let corporations adopt safety measures,
                  but also to build a partnership with the stakeholders of corporate
                  activities such as consumers and the society. Moreover, the
                  government will likely take even greater role to develop such
                  a system and to manage it.
 Our report reviews risks involved, risk management, and risk
                  communication related to the products safety in the Japanese
                  society, introduces various measures taken by industries to
                  ensure safety, and identifies challenges to be addressed in
                  the future.
 (From the Outline and Introduction chapters of the Committee
                  Chair Tamura)
 
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