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 Corporate Ethics Committee in place, which is chaired by the Chief Risk Management Officer（CRO）and attended by the President, Chief Officers, 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 Management Principle, Corporate Charter, and Code of Conduct.
Specific initiatives
Establishing compliance system
We specified a responsible department for each of the 137 laws and regulations applied to or are related to our business in Japan. The responsible department receives this information directly from an external information provider. In addition, the department in charge selects 87 important laws and regulations out of 137 laws and regulations, and formulates and operates a compliance management plan for those laws and regulations. As in Japan, overseas sites are also working to establish compliance systems.
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. A self-assessment on compliance is carried out regularly, and feedback is given to encourage voluntary improvement activities. We also encourage employees to follow the PDCA cycle of the above compliance management plan.
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. Before employees make contact with competitors, we request them to submit application in the form prescribed by the Company and conduct a check.
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 the FUTABA WAY and the Management Principle, etc. We have issued the Action Guidelines of Futaba in order for all employees to act with common sense and high ethical standards. We revised the Basic Approach to Anti-corruption（anti-bribery）Initiatives in September 2019. We have been conducting education for employees to disseminate it across the Group. Furthermore, we tackle for enhancement of an anti-corruption mechanism and system through the Internal Control Committee.
Import and export management activities
In order to comply with laws and regulations regarding import and export management, we operate and manage import and export based on internal rules determined for international transactions and with the appointment of a manager responsible for international transaction management in each division. We also established a liaison committee for international transaction management, and conduct information sharing and education regarding import and export operations, in addition to the review of internal rules across the Company and the regular checks of the status of business at each division.
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 which may significantly affect the Company, and 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 management executives and Audit & Supervisory Board Members.
We consider that the upward trend in the number of reporting and consultations reflects an increase in employees' awareness of the system. Reported details are analyzed to implement preventative measures in cooperation with dedicated departments. We will continue to enhance the effectiveness of the system through enhancement of awareness and improvement, etc.
Number of reporting and consultations
| FY | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Number of cases | 8 | 16 | 24 | 64 | 50 |
Note: Helpline in North America started in FY2021.