Compliance / Risk Management
Basic Viewpoint Concerning Compliance
Follow a Sincere and Ethical Path
The core value of the KANADEN Group Philosophy, "Follow a Sincere and Ethical Path," is the Group's basic policy on compliance. In the Group Philosophy, we emphasize "Open and Fair Management" and declare "We fulfill the expectations and garner the trust of all stakeholders through sound and sincere business practices grounded in high ethical standards." Based on the Group Philosophy, all employees of the Group share the principle that "ethical conduct and compliance are the prerequisites for the existence of an enterprise," and moreover, in all their actions endeavor to be mindful of their social responsibilities based on ethical values that go beyond ensuring compliance.
The Company has established the Compliance Committee chaired by the President and with a membership consisting of Directors and Executive Officers. The committee discusses and implements initiatives for promoting compliance to ensure that the Company's officers and employees act based on high ethical values. Moreover, for operating divisions to take the initiative in promoting compliance, the Compliance Information Liaison Meeting is organized whose membership consists of the Chief Compliance Manager and compliance managers who assist Compliance Committee members. The regular meeting is held twice a year and an extraordinary meeting is convened in the event of an emergency. At the regular meeting, measures concerning items for promoting compliance are formulated and the progress of their implementation is checked. The meeting members share information and exchange views to ensure promotion of compliance.
Training for Group employees
In order to further raise awareness of the importance of compliance, the Company has prepared a manual on the laws and regulations relevant to its business activities and provides explanations on basic in-house rules and legal matters related to operations that the employees should know and understand.
In addition, all employees of the Group participate in e-learning, which complements these explanations. In fiscal 2019, a total of 867 employees of the Group participated in 10 e-learning programs in the period from October to December.
All employees receive anti-harassment training to ensure that they understand harassment and appreciate the importance of the issue. The training is designed to deepen trainees' understanding and knowledge of the impact of harassment on individuals and companies, criteria for harassment, how to deal with harassment, and other matters through workshops and discussions, in order to create a harassment-free comfortable workplace. Regarding workplace harassment, as well as providing an anti-harassment e-learning program, the President has issued a statement addressed to all employees that makes it clear Kanaden will not permit any harassment. We are striving to ensure a harassment-free working environment throughout the Company.
Questionnaire survey of partner companies regarding compliance
For the purpose of ensuring compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors and the Construction Business Act and preventing inappropriate transactions, we conduct an annual questionnaire survey of partner companies, which includes a question on whether they are compelled to engage in any inappropriate transactions. The survey contributes to ensuring compliance and promotion of fair transactions and prevention of risk.
Operation of the Corporate Ethics Hotline
The Group has the Corporate Ethics Hotline for whistleblowing to prevent unethical conduct and strengthen its self-purification function.
This hotline is available not only for the Group's employees but also for contracted workers, part-time workers, and temporary staff. Moreover, to protect whistleblowers from anxiety with extreme care, they can opt to contact an external attorney's office so that they can be free from concerns about being identified.
For all the cases reported via the hotline so far, the Company has implemented thorough measures to protect the whistleblowers and strictly handled the cases in accordance with the Rules for Operation of the Corporate Ethics Hotline. The cases are investigated, starting with the confirmation of the facts and if any problem is identified, corrective action is swiftly taken and recurrence prevention measures are considered and implemented.
Corporate Ethics Hotline Flowchart
Basic Viewpoint Concerning Risk Management
In order to forestall management crises and ensure the continuation and stable development of the business, risks for important matters related to the execution of business are evaluated and identified, deliberated at Management Meetings, and decided on by the Board of Directors. Preventive measures have been devised to deal with a variety of crises, such as the strengthening of governance, the effective operation of the internal control system, and the ongoing implementation of compliance-related initiatives.
In the event of a state of emergency such as a natural disaster, accident or unforeseen incident occurring, the Company aims for important operations to continue uninterrupted, and even in the event of such interruptions taking place, for operations to resume in the shortest possible time. In order to deal with the initial stages promptly and appropriately, a Disaster Countermeasures Headquarters will be set up to devise countermeasures, and the Company implements an ongoing program of education and training on a day-to-day basis.
Moreover, in order to protect our own information assets and the information assets entrusted to us by customers and suppliers from theft, falsification, damage, and leakage, and to manage them properly and securely, we have prescribed the Basic Policy on Information Security and operate it appropriately. In addition to security measures at the system level, we seek to strengthen information security by implementing an ongoing program of education, development and training for employees, and handling information in an appropriate fashion.