Compliance

Basic concept: A corporate group trusted by stakeholders

Daihatsu promotes compliance activities with the aim of becoming a corporate group that is trusted by customers, shareholders, and society as a whole. The Internal Control Committee deliberates on compliance activity plan every fiscal year and relevant officers follow up on the activities. Daihatsu also requests other group companies to use a voluntary inspection sheet to check their compliance status and report to Daihatsu. While it is up to each company to take the initiative in compliance, Daihatsu is working to raise awareness of compliance of the group as a whole by helping the companies make improvements based on their circumstances and needs.

Compliance Promotion System

Promotion system

Daihatsu sees compliance as an important component of internal control, as such, the Internal Control Committee oversees compliance promotion activities. In order to study technical issues in each legal field, the committee has formed the Export Management Committee, the Daihatsu Environmental Meeting, and the Safety and Health Committee, where representatives from all the functional groups meet regularly.

The Consolidated Compliance Liaison Group is one of the means by which Daihatsu shares information on legal trends and actual cases of compliance violation and exchanges opinions with internal control managers for mutual benefit.

Compliance activities

The Daihatsu Group has designated 13 areas* in which each group company must comply with relevant laws and regulations. A functional division trusted with an area engages in activities to prevent compliance problems across group companies.

* The 13 areas are: overall compliance, governance (affiliated company management system and control item list), export management, the Sarbanes-Oxley Act, safety, software, classified information management, elimination of antisocial forces, the Fire Services Act, the Antimonopoly Law and Subcontract Proceeds Act, labor affairs, intellectual property, and anti-corruption.

Efforts in anticorruption

In August 2013, Daihatsu established the Anti-Corruption Guidelines and has launched the guidelines throughout the company and to group companies both in Japan and abroad. The guidelines have also been posted on the company intranet to ensure employee awareness.

The aforementioned voluntary compliance inspection sheet is used by Daihatsu and its group companies to check compliance to the guidelines every year. As in other areas, Daihatsu remedies any inadequate anti-corruption activity.

The guidelines also require Daihatsu and its group companies to follow internal decision-making rules when choosing a business partner, after checking the candidate’s financial wellbeing and history of scandals.

Measures against antisocial forces

Daihatsu’s fundamental policy is not to give in to demands from antisocial forces and to cease any relationship with antisocial forces. Based on this policy, Daihatsu has posted a manual on measures against antisocial forces on the company intranet to ensure employee awareness. Daihatsu has also contracted an advisor (former police officer serving as a contact employee) to address issues with, and collect information on, antisocial forces.

Daihatsu screens new business partners for any involvement with antisocial forces. If a business partner is found to be an antisocial force or to have a relationship with an antisocial force, Daihatsu ceases business transactions with the business partner.

Anti-corruption activities

As an anti-corruption measure, Daihatsu has specified in its work regulations that “employees must not abuse their occupational authorities” and clarified the penalties for violators to ensure that all employees engage in anticorruption activities.

Suppliers are requested to engage in anti-corruption activities under the Supplier CSR Guidelines. In addition, every basic transaction agreement with suppliers includes a clause to promote sincere and sound corporate activities and binds suppliers to the clause.

Compliance education

Job promotion training and job level training at Daihatsu include compliance topics. Employees also learn compliance through e-learning. In addition, each department holds voluntary workshops and officers assigned from Daihatsu to group companies receive guidance on compliance from Daihatsu's full-time auditor. Daihatsu also offers annual training for officers in charge of internal control and internal control managers at group companies.

Employees’ Voice Helpline

Since commencement in fiscal year ended March 31, 2003, Employees’ Voice Helpline system has allowed anyone working in the company to make suggestions. The Employees’ Voice Desk formed in Daihatsu's Audit Division receives suggestions, investigates cases, and takes corrective actions when necessary. Employees’ Voice Operating Guidelines clearly mandate the protection of whistle-blowers and private information to prevent backlashes against the whistle-blowers.
The system was extended to all the domestic subsidiaries in fiscal year ended March 31, 2008. Then, Group Help Line, which allows subsidiary employees to directly report to Daihatsu's Employee Voice Desk, was set up at sales subsidiaries in fiscal year ended March 31, 2009 and at production subsidiaries in fiscal year ended March 31, 2011.

Daihatsu will continue the Employees’ Voice system to foster a corporate culture that values ethics and compliance.