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These days, telecommunications is assuming unprecedented importance, and communication networks now constitute infrastructural elements that are indispensable to the national life and economic activities. In this climate, we at KDDI must constantly bear in mind the pronounced social and public welfare dimension of telecommunications in all of our actions. The very development of business as a total carrier providing safe and secure services fusing fixed and mobile communications is attended by considerable social responsibility. As I see it, the genuine worth of our company lies in sure discharge of this responsibility.
This is all the more reason why the leakage of some customer information that came to light in June 2006 [1] demanded such serious soul-searching on our part. On behalf of the entire company, I offer my deepest apologies for the extensive apprehensions and trouble caused by the leakage. To prevent recurrence of any such accidents, we have not only conducted an emergency reinspection of our management of customer information but also made plans for rigorous reinforcement of information security, and are now executing these plans through a concerted, companywide effort.
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Leakage of customer information
In June 2006, we discovered that data on about 3,997,000 customers who had applied for DION ("au one net" as of September 27, 2007), our Internet connection service, no later than 18 December 2003 had leaked outside our premises. The leakage was confined to name, address, and telephone number; it did not include any information concerning customer credit or use of au or MYLINE services. Subsequent investigation by the police led to recovery of all of the leaked data, and we confirmed that there was no risk of the information being put to illegitimate use or leaked to third parties. |
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We at KDDI have positioned the idea of total customer satisfaction (TCS) at the very pillar of our management philosophy. In keeping with TCS, we regard all of the parties with a stake in our company as our customers and strive to increase their level of satisfaction with our activities. As we see it, permeation of the TCS mindset throughout the company and sure practice of its principles are nothing less than our social responsibility, and may be equated with CSR performance meeting the expectations of society. We are going to redouble our TCS approaches in order to continuing being the kind of company that is trusted and preferred by all of our stakeholders.
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The strict preservation of communications confidentiality and the protection of customer information, which are mandated by the Constitution and various laws, are the primary prerequisites for CSR activities by telecom carriers. While we have long taken measures related to information security and personal information management, we intend to scrutinize our setups to uncover any shortcomings and strengthen our arrangements for control in these aspects. In the areas of compliance, corporate governance, information disclosure, and risk management as well, we are instituting ad-hoc units and interdepartmental committees to tighten control and thereby solidify our management foundation.
For our employees, whom we consider valuable stakeholders, we are taking steps for development and effective use of skills, and endeavoring to prepare a workplace environment that heightens motivation among each and every one while giving full play to individual talents.
We are also going to continue with our programs of international cooperation and community contribution. The former are exemplified by our work to improve telecommunications in developing countries and our transfer of technology to them through programs for acceptance of trainees, and the latter, by our support for a wide range of cultural and local projects.
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Along with their diffusion, telecom services have helped to make modern life more comfortable and convenient, but they have also generated various issues. The spread of mobile phones, for instance, has led to some criminal misuse of the technology. Such cases may be viewed as the negative aspect of telecom service advancement.
We see it as a key duty of ours to take an objective look at these realities and remain aware of the impact our goods and services have on society as we forge ahead with the new programs of development.
Another agendum that demands more attention from now on is preservation of the environment. Although we must build up telecom facilities to make our goods and services available to more customers, we also must mount bigger efforts on the fronts of energy and resource conservation while also promoting receipt of ISO 14001 certification by the entire company.
For corporate customers, we are going to actively propose solutions to assist their efforts to save energy and resources by offering support as only we could, taking full advantage of telecommunications technology.
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As a total telecom carrier with nationwide services, and in keeping with our pursuit of the original purpose of the sectoral deregulation, we are determined to lead the introduction of progressive and advanced services into the market and breed a competitive climate that puts the customer first and is constructive. We are aware that action to optimize the overall benefit to society and stakeholders as well as to raise levels of international competitiveness is a key part of our role as a member of the industry.
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Although only six years have passed since our founding, KDDI has managed to expand its business size and scope, thanks to the valuable support from our many customers.
The social expectations of KDDI and the accompanying responsibility are reaching ever higher levels. This is precisely why we must constantly heed the direction of social concern, listen carefully to our customers, and act as they require, as a matter of routine. The most important prerequisite to this end is an ongoing refinement of sensitivity to society and betterment of skills on the part of each and every KDDI employee.
We earnestly hope to remain a company that continues to achieve growth driven by the way it surely discharges its obligations to help society advance.
October 2006
Tadashi Onodera
President and Chairman
Member of the Board
KDDI CORPORATION
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