Basic approach
Futaba defines compliance as follows: "Acting with integrity not only in compliance with laws and regulations, but also with a sense of values and ethics required of a business person as a member of society, thereby realizing fair and appropriate business management, achieving harmony with civil society and promoting creative development of the Company. Placing importance on environmental issues and taking initiatives in environmental conservation efforts." We will conduct corporate activities with high ethical standards and fulfill our social responsibilities with full awareness of our corporate social responsibilities and public mission. We will respect domestic and foreign cultures and customs, make efforts to preserve the environment, grow together with our local communities and engage in various activities in an effort to become a company that is appreciated by local communities.
Promotion system
The Company has the Corporate Ethics Committee in place, which is chaired by the Chief Risk Management Officer (CRO) and attended by the President, Center Chiefs, fulltime Audit & Supervisory Board Members, and others deemed appropriate by the Committee. The Committee deliberates and decides policy on key matters concerning corporate ethics and compliance, while seeking to improve the awareness of compliance by ensuring the full knowledge of the Charter of Corporate Behavior, FUTABA Code of Conduct and Action Guidelines of Futaba, based on our Purpose, Mission, and Values, and the FUTABA WAY, etc.
Specific initiatives
Establishing compliance system
For each of the 138 laws and regulations applicable or relating to our business in Japan, we have designated a responsible department which receives information on the law or regulation from an external information provider. Furthermore, the responsible department has selected 88 influential laws and regulations out of the 138 laws and regulations and formulated compliance management plans for them, which already are in operation. We are also working to establish a compliance system at our overseas bases as well.
Training and educational activities
The Company is enhancing the awareness of compliance through training on necessary legal knowledge based on qualifications and ranks of employees. Moreover, we regularly conduct compliance self-assessments, the results of which are compiled and fed back. This is aimed at encouraging individual departments to voluntarily assess their compliance status and carry out the PDCA cycle for the aforementioned compliance management plans.
Initiatives regarding compliance with competition laws
As one of important education themes, we aim to enhance employees' awareness of compliance with competition laws through education in various training programs as well as regular e-learning education.
When employees make contact with competitors, we request them to submit application in the form prescribed by the Company and conduct a check.
Additionally, we conduct regular audits twice a year to check the operational status of contact applications and investigate the actual contact situations.
Initiatives for proper tax payment
We strive to file a proper tax return, strictly complying with laws and regulations regarding taxation. We will neither apply tax breaks deviated from the intent of tax laws nor engage in intentional tax avoidance activities. We also do not engage in activities with the abuse of tax heavens and tax treaties, which may lead to tax base erosion and income transfer.
For the management of taxation risks in response to globalization, we have established provisions regarding the taxation rules to comply with and the management of transfer pricing of the Group, and manage transfer pricing based on the OECD Transfer Pricing Guidelines and the transfer pricing taxation rules of countries and areas where our Group companies are located.
Anti-corruption and anti-bribery initiatives
We properly perform business operations across the Group based on our Purpose, Mission, Values, and the FUTABA WAY, etc. We have issued the Charter of Corporate Behavior and FUTABA Code of Conduct in order for all employees to act with common sense and high ethical standards. We revised the Basic Approach to Anticorruption (Anti-bribery) Initiatives in September 2019.
We have been conducting education for employees to disseminate it across the Group. Furthermore, we strive to enhance an anti-corruption mechanism and system through the Internal Control Committee.
Overseas Transaction Management Activities
In order to comply with overseas transaction-related laws and regulations, we have established global rules for conducting overseas transactions and appointed overseas transaction management officers for each division. These officers are responsible for the operation and management of activities based on internal rules. Additionally, we have set up an Overseas Transaction Management Liaison Committee to review company-wide rules and regularly check the implementation of operations at the headquarters. We also provide information dissemination and training related to overseas transaction activities.
Establishment of helplines
The Company has established the Futaba Helpline, an internal helpline that allows anonymous reporting and consultations, in order to detect and resolve internal issues early. In addition to the internal helpline, the head office and domestic Group companies have set up an external helpline at a law firm outside the Company for the wide range of usage including family members, retirees, and employees of major trading partners. Overseas Group companies have a similar mechanism to that in Japan. The helplines target violations of laws and internal rules, as well as issues related to human rights and environmental protection, all of which can significantly impact the company. The reports and consultations are fact-checked in collaboration with dedicated departments to speedily resolve problems. Internal reporting rules are managed in accordance with the Whistleblower Protection Act. The content of reporting is regularly reported to Directors and Audit & Supervisory Board Members.
In FY2023, we received 58 reports and consultations (11 at Futaba Head Office and 47 at Group companies in Japan and overseas). Many of the reports concerned harassment or violation of internal rules, and we have responded to them appropriately.
We will continue to enhance the effectiveness of the system through enhancement of awareness and improvement, etc.
Number of reporting and consultations
| FY | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Number of cases | 16 | 24 | 64 | 50 | 58 |
*Helpline in North America started in FY2021.