Group Risk & Compliance Promotion Framework
The Group has established the following organizational structure to promote group-wide compliance.
- *This chart is scrolled
Act honestly and responsibly
We have formulated and announced Toyo Seikan Group Code of Conduct and Guidelines of Behavior as common standards of activities for all officers and employees in the Group to implement and comply with, including preventive measures against bribery and corruption. By distributing a booklet to each employee and through the intranet, we have been working on their dissemination across all group members.
Formulation of Group Regulations to Prevent Bribery Involving Public Officials
We have been managing our business in accordance with the Group Regulations to Prevent Bribery Involving Public Officials to ensure compliance with domestic and international anti-bribery laws. When deciding on a merger, acquisition or joint venture involving a non-group company, we conduct an appropriate assessment of such company’s business to check for present and past violations of anti-bribery laws and regulations.
Declaration of Complete Separation from Cartel Involvement
The boards of directors of Toyo Seikan Group Holdings and Toyo Seikan adopted the “Declaration of Complete Separation from Cartel Involvement” in fiscal 2019 to ensure compliance with the Antimonopoly Act.
Declaration of Complete Separation from Cartel Involvement
The Toyo Seikan Group (the “Group”) shall conduct transactions through free and fair competition that complies with the Antimonopoly Act (the “Act”) and shall not engage in any activity that violates the Act or that leads to a suspected violation of the Act with any business operator that competes with companies in the Group.
Main Activities in FY2021
The following activities for Toyo Seikan Group Holdings and its domestic and overseas group companies were conducted during fiscal 2021.
Establishment of Antimonopoly Act Compliance Framework
We have taken steps to establish a group-wide framework to comply with the Antimonopoly Act.
Establishment of internal regulations to comply with Antimonopoly Act
We have established internal regulations to comply with the Antimonopoly Act in order to ensure that all group companies comply with the Act and that the Company, as the holding company, conducts business activities based on fair and open competition. In 2021, following the amendment to the Act, we revised the Guidelines for Compliance with the Antimonopoly Act for the group companies and confirmed their awareness of the guidelines.
Educational program for newly appointed managers and assistant managers
The Legal Department conducted an educational program for newly appointed managers and assistant managers of major group companies. In fiscal 2021, to avoid the risk of COVID-19 infection, the program was provided online for a total of 247 participants, who attended one of several days of the program period. They learned about the topics related to the respective themes for managers and assistant managers as well as about the effective use of the Group’s internal reporting system.
This program will be conducted on a continual basis for enhanced compliance going forward.
- Program for newly appointed assistant managers (3 days) 146 participants
Theme: How to prepare documents that can avoid any risk of violating Antimonopoly Act
- Program for newly appointed managers (2 days) 101 participants
Theme: Case study for preventing Antimonopoly Act violation
- E-learning course on Antimonopoly Act (Basic) conducted for 5,883 employees from domestic major group companies
- Based on the December 2020 amendment of the Antimonopoly Act, the Antimonopoly Act Compliance Guidelines for the entire Group was revised and disseminated to all group members.
- Hearings planned and conducted by the Legal Department for newly appointed presidents of group companies to prevent the experiences of violation from being forgotten and to grasp the status of compliance framework of group companies.
- Written pledge to comply with the Antimonopoly Act submitted by all employees in sales departments
- Antimonopoly Act Compliance Card carried by all employees in sales departments at all times
Prevention of Bribery and Corruption
- The Toyo Seikan Group Guidelines of Behavior, common standards for all officers and employees in the Group to implement and comply with, set rules to prevent any form of corruption, including bribery involving domestic or foreign government officials, customers, or suppliers, misappropriation, and money laundering.
- We have formulated the Group Regulations to Prevent Bribery Involving Public Officials and guidelines concerning commercial bribery to commit to preventing bribery and corruption. We have been managing our business in accordance with the regulations and guidelines.
- The aforementioned regulations and guidelines have been translated into English, Chinese, Thai and Indonesian to be disseminated to all group members inside and outside Japan.
- We have conducted research on the implementation status of management in accordance with the regulations and guidelines at domestic subsidiaries and major foreign group companies, and confirmed their compliance.
- Based on the Guidelines of Behavior and the bribery prevention regulations, we have been regularly conducting e-learning programs on the prevention of bribery and corruption for all managers and employees since fiscal 2018.
- Based on the Guidelines of Behavior and the bribery prevention regulations, we plan to continue our e-learning programs on the prevention of bribery and corruption for domestic and overseas group companies.
Group companies joining the programs
* This chart is scrolled
- * The list of group companies joining the e-learning program may change according to the scores of the Corruption Perceptions Index released by Transparency International.
Deepen Understanding of the Group’s Code of Conduct and Guidelines of Behavior
We have formulated the Group’s Code of Conduct (“Code”) and Guidelines of Behavior (“Guidelines”), the basic standards of behavior which every officer and employee of the Group must implement and comply with. They are available on our website and the company bulletin board to allow the employees to confirm the details at any time.
All new recruits of the Group, including both the new graduates and mid-career recruits, are given the booklet on the Code and the Guidelines for deeper understanding. During fiscal 2021, as part of regular dissemination efforts, we conducted educational programs for different levels of employees, including newly appointed officers, new managers and assistant managers, and new recruits, in line with the Code and the Guidelines.
Month-Long Group Compliance Promotion Campaign (October)
- Activities related to Group’s common campaign theme
- 1) Enhancing trade secret management framework
- 2)Maintaining and enhancing subcontract act compliance system
- Group Compliance Training Seminar
- Submission of the written pledge to comply with ethics and laws and regulations
Whistleblowing and Consultation System (Internal Reporting System)
We have established an internal reporting system for the group companies in Japan, Thailand and China to promptly identify and remedy any non-compliance, including unfair business practices, human rights violation, workplace misconduct and harassment, illegal action, and bribery and corruption.
Structure of our internal reporting system
Protection of Hotline Users
Under the Rules for Management of Group Compliance Whistleblowing and Consultation System, we ensure protection of hotline users by enforcing the rules below and informing the whole Group of our protection approaches. The English, Thai and Chinese translations are also available for employees of foreign group companies to correctly understand the rules.
- （1）Those who access these hotlines can either reveal their real names or remain anonymous (provided that the person who anonymously contacted the hotline cannot receive feedback, including confirmed facts and investigation results).
- （2）All companies in the Toyo Seikan Group shall strictly protect the privacy and confidentiality of individuals who accessed the hotlines.
- （3）No one will suffer disadvantages as a result of using any of the hotlines unless the use was for illicit purposes.
- （4）Any act of retaliation against individuals who used the hotlines for reporting or consultation will not be tolerated.
- （5）Since the details of reporting and consultation via website are managed with encryption, any user can access the website without concern about leakage of information.
Enhancing the Internal Reporting System
In Japan, to allow group members to easily access the reporting system, it is divided into internal and external channels, and each channel has the contact points for reporting on “corporate ethics” and “harassment and Interpersonal relations.” The domestic service is available to officers, employees (including contract employees, part-time workers, temps and employees of contractors), and former employees. Meanwhile, the reporting system for overseas group members is intended for officers and employees.
During fiscal 2021, there were 127 contacts in Japan and overseas, none of which would lead to material noncompliance or human rights violation.
We also formulated the Rules for Management of Group Compliance Whistleblowing and Consultation System on April 1, 2021 to establish and operate the internal reporting system in a unified manner throughout the Group.
When there is a contact to the system, we promptly respond to it in accordance with our internal regulations. We also continuously improve the system, revise relevant regulations, and add and change learning menus in our educational programs in order to prevent recurrence.
We have been promoting employees’ better understanding of the reporting system with posters and self-check cards.
With the Compliance Newsletter issued to group companies, we share information on the internal reporting system with all members to increase their understanding of the significance and purposes of the system and how to use hotlines, aiming to improve its effectiveness.
Educational and Training Programs for Group Members
Various programs and educational activities, including the programs stated below, were conducted for domestic group companies.
Legal Training Program for Newly Appointed Group Officers
In May 2021, we invited an external lawyer as a lecturer to conduct a training program designed for newly appointed officers of the Group. There were 28 participants in the program (attending one of two days).
Theme: Liability and responsibility of directors and officers
Group Compliance Training Seminar
On October 14, 2021, we invited an external lawyer as a lecturer to conduct a Group Compliance Training Seminar for 155 officers from group companies.
Responses to compliance issues required of directors and officers learning from incidents at other companies
Other Training Programs and Internal Educational Support
In fiscal 2021, staff members of the Legal Department gave lectures at the holding company and several group companies on laws and regulations that are related to our operations. There were a total of 33 sessions during the year.
To continuously support internal education activities, we have also developed educational materials that explain compliance issues and laws and regulations and made them available to all group companies.
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Collect and Transmit Compliance-Related Information
To raise compliance awareness among group members, we have created a compliance risk map to identify and assess all possible compliance risks in business management. We then prioritize risks to be addressed for more effective efforts. We are also working to share information about group companies’ compliance activities and accidents and events occurring in the society.
Preventing Harassment and Abuse
We have established a policy regarding the prohibition of discriminatory speech and behavior and harassment in the Toyo Seikan Group Guidelines of Behavior and clearly prohibit harassing speech and behavior in the work rules. We have also set up a group-wide consultation service dedicated to harassment and interpersonal relations to provide consultations and address a range of concerns.
In fiscal 2020 and 2021, we provided e-learning anti-harassment programs for approximately 15,000 employees (managers, leaders and general employees) from 41 group companies to allow them to recognize the risks and causes of harassment and abuse and to help change their behavior. The program for managers focused on how to deal with harassment that has occurred or been reported and what preventive measures to be taken, while that for general employees focused on learning typical cases and countermeasures. With all employees, regardless of generation, raising their awareness and sharing a common understanding of harassment problems, the Group is aiming to create a corporate culture without harassment and abuse.
Major Activities Planned for FY2022
- Ensuring fair operating practices
- Respecting human rights
- Promoting full understanding of the Group Regulations to Prevent Bribery Involving Public Officials
- Month-long group compliance promotion campaign
Initiatives at Operating Companies
Anger Management Workshop
In October 2021, TOMATEC invited an external lecturer to hold an anger management workshop as part of the month-long compliance promotion campaign. The 103 participants learned about “anger management” as a means to facilitate communication between supervisors and subordinates to prevent abuse of power in the workplace, from the standpoint of both sides. The training session satisfied many employees as they learned anger control methods and practical examples that would be useful both in work and at home.
Preventing Abuse of Power in Workplace
In response to the enforcement of the power abuse prevention law in 2020, the Toyo Kohan group has established the Toyo Kohan Group Power Abuse Prevention Guidelines, working to create a safe and comfortable workplace where all employees respect each other and can work without suffering abuse of power.
In March 2021, the company conducted an internal survey to grasp the state of awareness and understanding of power abuse issues among employees and to utilize the findings in future education and systems. More than 80% of the survey respondents were aware of the legal changes and the existence of the guidelines, while about 30% of the respondents did not know their contents. For the question about effective ways to eliminate abuse of power, the most common response was “creating opportunities to deepen mutual understanding among employees.”
Based on the survey results, the group has had a renewed recognition of the importance of increasing employees’ awareness and education, and has been conducting educational programs using DVDs and Teams platform.
The Toyo Kohan group recognizes that abuse of power is a material issue that affects its business operations, and will constantly address the matter going forward.
Education on Subcontract Act
Tokan Kogyo conducted training programs to maintain and enhance its system for compliance with the Subcontract Act. In August and September 2021, approximately 250 employees participated in an online training program using Zoom platform. There was also an e-learning course on the Subcontract Act, which was attended by all employees in the procurement department (approximately 400 persons)
We will continue to work on ensuring proper transactions and preventing violation of the Subcontract Act.
On November 17, 2021, Tokan Kogyo held a compliance workshop for directors and officers of its group companies. With the theme of “Compliance as Risk Management,” the lecturer, Dr.Manabu Hirano, discussed the enhancement of the compliance system through risk management, including case studies of other companies’ experiences. The workshop is expected to help the company strengthen its risk management, promote compliance activities and raise awareness of employees. Dr. Hirano also gave specific advice on the content of consultation made through the Tokan Kogyo group’s reporting hotline.
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