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, our shareholder, and society as a whole. The Internal Control Committee deliberates on the compliance activity plan every fiscal year and relevant officers follow up on the activities. Daihatsu also requests its 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 specialized issues in each legal field, the committee has formed the Export Control Committee, the Daihatsu Environmental Meeting, (the Safety and Health Committee), and each meeting is held regularly by each functional department.

Affiliated Companies Compliance Liaison Group is one of the means by which Daihatsu Group shares information on legal trends and actual cases of compliance violation and exchanges opinions with internal control managers for Mutual improvement.

Compliance activities

The Daihatsu Group has designated priority areas* in which each Group company must comply with relevant laws and regulations. Each functional department responsible for an area engages in activities to prevent compliance problems across Group companies.

Anti-corruption initiatives

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 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 strength and if there is any 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 initiatives

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 anti-corruption 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 its Group companies.

Employees’ Voice Helpline

Since commencement in fiscal 2002 year, the whistle-blowing system, Employees’ Voice Helpline system has been established 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. Employees’ Voice Helpline 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 affiliated companies in fiscal 2007. Then, Group Helpline, which allows Group companies’ employees to directly report to Daihatsu's Employee Voice Desk, was set up at sales companies in fiscal 2010 and at affiliated production companies in fiscal year 2010.

In fiscal 2017, Daihatsu reorganized its Group Helpline, and rolled out the Daihatsu Sales Company Helpline—which is operated by a law firm—to all sales companies.

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