Fundamental Approach

A Corporate Group Trusted by Stakeholders

Daihatsu promotes compliance activities with the aim of becoming a corporate group that is trusted by customers and society as a whole. The Internal Control Committee deliberates on the compliance activity plan every fiscal year and relevant operating officers follow up on the activities. We also request Daihatsu Group companies to use a self check sheet to check their compliance status and report to Daihatsu. Basically it is up to each company to take the initiative in compliance, we are working to raise awareness of compliance of the Group as a whole by supporting Group companies to make improvements based on their circumstances and needs.

Compliance Promotion Structure

Daihatsu sees compliance as an important component of internal control, as such, the Internal Control Committee is responsible for promoting company-wide activities. In order to study specialized issues in each legal field, the committee has formed committees such as the Security Trade Control Committee and Corporate Safety and Health Committee (the Corporate Safety and Health Labor-Management Council), and each meeting is held regularly by each functional department.
The Affiliated Companies Compliance Meeting is one of the means by which Daihatsu Group companies share information on legal trends and other companies’ actual cases of compliance violation as well as exchange opinions with internal control managers at Daihatsu Group companies for mutual improvement.

Compliance Activities

Daihatsu designates priority areas in which each Daihatsu Group company must comply with relevant laws and regulations. Each functional department responsible for an area takes the lead in engaging in activities to prevent compliance problems across Group companies.

Anti-corruption Initiatives

As an anti-corruption measure, Daihatsu has specified in its work rules that employees must not abuse their occupational authorities and clarified the penalties for violators to ensure that all employees engage in anti-corruption activities. Business partners are requested to engage in anti-corruption activities under the Supplier CSR Guidelines.

Anti-bribery Initiatives

In August 2013, Daihatsu established the Anti-corruption Guidelines and has deployed it throughout the company and to Daihatsu Group companies in Japan and overseas. The Guidelines have also been posted on the company intranet to ensure employee awareness.
The Guidelines prohibit bribery of both public and non-public officials as well as provide for cooperation in investigations by relevant authorities.
As a result of these initiatives, no cases involving fines or dismissal due to bribery occurred in 2021.

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.

Whistle-blowing System and Harassment Consultation Desk / Tax Affairs

Whistle-blowing System: Employees’ Voice Helpline

Since commencement in fiscal 2003, we have been operating the Employees’ Voice Helpline as the whistle-blowing system to allow 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. The Employees’ Voice Helpline Regulation clearly mandates the protection of whistle-blowers and private information to prevent unfair treatment against the whistle-blowers.
We also introduced whistle-blowing systems at subsidiaries in Japan in fiscal 2008.
We have also been introducing a Group Helpline at subsidiaries, which enables their employees to report directly to our Employees’ Voice Desk, in stages since fiscal 2009. In fiscal 2018, we reorganized the Group Helpline and rolled out the Daihatsu Sales Company Helpline—which is operated by a law firm—to all sales companies. We will continue the Employees’ Voice Helpline system to foster a corporate culture that values ethics and compliance.

Compliance Education

We provide job level trainings, which include topics relating to compliance, at the time of hiring and promotion as well as e-learning for employees. In addition, each department holds voluntary workshops and officers assigned from Daihatsu to Group companies receive guidance on compliance from Daihatsu’s corporate auditor and others. We also provide trainings for the relevant personnel of Group companies.

Daihatsu’s Tax Policies

Approach to Taxes
In accordance with the “Daihatsu Group Basic CSR Principles,” Daihatsu complies with the laws and regulations of each country where we conduct business as well as standards announced by international organizations. We see tax payment as an obligation, and also as the foundation of our social contribution, and we strive to pay appropriate taxes by keeping stable profits throughout cost reduction by SSC (simple, slim, and compact).

Tax Policies

  • Compliance with Laws and Regulations
    Daihatsu complies with the laws and regulations of the country where we conduct business and international standards, such as the OECD Transfer Pricing Guidelines and the Action Plan on Base Erosion and Profit Shifting. We don’t avoid taxes by using tax havens and so on and will pay appropriate taxes through the normal activity of business.
  • Governance
    Daihatsu responds appropriately to tax problems in cooperation with affiliated companies as necessary. We also educate employees through training and e-learning about tax. We ensure transparency relating to taxes by reinforcing tax governance and making fair and timely disclosures of our financial status.
  • Relationships with Tax Authorities
    Daihatsu makes effort to make and maintain good relationships with tax authorities by being open, constructive, and cooperative. In the case of difference of opinions with the tax authorities on a particular tax-related issue arising from the complexity of interpretation of the tax system, we cooperate with the authorities in order to reach a timely resolution. We recognize that such differences of opinion and dispute resolution are necessary to deepen mutual understanding with the tax authorities in the future.
  • Inter-company Transactions at Appropriate Prices (Transfer Prices)
    Regarding with transactions with other Group companies, Daihatsu sets appropriate prices (arm’s length prices) and does not arbitrarily set inappropriate prices.