Compliance

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 GRC Committee deliberates, formulates, and implements compliance activity plans on an annual basis. In addition, we have formed committees such as the Security Trade Control Committee and Corporate Safety and Health Committee (the Corporate Safety and Health Labor-Management Council) in order to study specialized issues in each legal field, and each meeting is held regularly by each functional division. 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 Activities

Compliance Education

Daihatsu is working to provide comprehensive training for all operating officers and employees.
We also incorporate a variety of methods, such as training when joining the company and after getting promoted, regular training at each level, meetings, and e-learning. Furthermore, we have added training using materials shared with Toyota, and are also expanding this to affiliated companies in Japan and overseas.
As part of our awareness-spreading activities, we have implemented the Compliance Articles (each division selects important laws, regulations, and rules and declares their compliance) and a Daily Compliance Quiz (questions are displayed when the PC is started).
In addition, lectures are given by full-time Audit & Supervisory Board members to operating officers who are dispatched to affiliated companies.

Anti-bribery and 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. We also comply with the Toyota Global Anti-Bribery and Anti-Corruption Policy.

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 Consultation Desk

Whistle-blowing System: Employees’ Voice Helpline

Daihatsu operates the Employees’ Voice Helpline as the whistle-blowing system to allow anyone working in the company to make reports. In February 2024, we also established a reception desk run by a law firm. The Employees’ Voice Desk formed in Daihatsu’s Audit Division receives reports, investigates cases, and takes corrective actions when necessary. The Whistle-blowing System Operating Regulations clearly mandate the protection of whistle-blowers (keeping their identity confidential), thorough management of information, avoidance of conflicts of interest within the investigation process, provision of feedback to anonymous whistle-blowers, and disclosure of results to employees. This ensures transparency and prevents unfair treatment against whistle-blowers.
We have also introduced whistle-blowing systems at subsidiaries in Japan, as well as Daihatsu Group Helpline which enables their employees to report directly to our Employees’ Voice Desk. In addition, we have rolled out the Daihatsu Sales Company Helpline, which is operated by a law firm, to all sales companies, and have set up a whistle-blowing desk for suppliers doing business with us (renamed the Daihatsu Supplier Reporting Desk in January 2025). We will continue the whistle-blowing system to foster a corporate culture that values ethics and compliance.

Tax Affairs

Daihatsu’s Tax Policies

Approach to Taxes
In accordance with the “Daihatsu Sustainability Basic Policy,” 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.