Compliance

Basic Concept

As our Group expands its business globally, there is a concern that depending on how we respond to ethical issues, not to mention legal compliance, we may have to suspend operations or significantly damage our brand and other assets. There is also a concern that we may lose the trust of society and our business partners due to a lack of compliance awareness or violations.
We have established the Employee Code of Conduct as a guideline for all employees of our Group to act with integrity based on the values and ethics required of a corporate citizen as a member of society, respecting social norms as well as complying with laws and regulations, to realize fair and sound management, to achieve harmony with civil society, and to develop the company creatively. We have established the Employee Code of Conduct as a code of conduct for the creative development of the company.
In the Yamato SPIRIT (Values and Action Guidelines) of our corporate philosophy "MISSION, VISION and Yamato SPIRIT," we have set forth fairness as one of our values. In addition, the Yamato Kogyo Group Employee Code of Conduct stipulates compliance with various business laws, severance of relations with antisocial forces, fair trade and compliance with subcontracting laws, workplace safety, and health, and compliance with labor-related laws and regulations. By thoroughly legal compliance, we show our stance of being honest and maintaining the highest level of ethical standards.

Structure

To ensure thorough compliance, our Group has established the following systems for internal control.
The President and Representative Director of Yamato Kogyo Co., Ltd. is ultimately responsible for our Group's internal controls, and the Representative Directors of each Group company are assigned as the persons responsible for their internal controls, which are implemented following the Basic Policy on Internal Controls.
The Board of Directors decides on basic policies regarding the development and operation of internal controls and is responsible for supervision. In addition, corporate auditors work with the departments involved in the development and operation of internal controls, ascertain the status of the development and operation of internal controls through audits by corporate auditors, and provide advice and recommendations to management as necessary. Department managers are obligated to conduct self-inspections, improve issues, and report on the development and operation of internal controls in their departments.
As for the management system, the General Manager of the Internal Audit Office is responsible for the promotion of internal control in his company as the person in charge of internal control, and the Internal Audit Office serves as the secretariat function for the management of internal control in our Group and promotes internal control for the entire Group. The president of each Group company appoints an internal control leader, an internal control committee member, and an internal control promotion committee member, and the head of each department serves as an internal control committee member and is responsible for promoting internal control initiatives.

System for Financial Reporting

Medium-term Sustainability Plan "Compliance"

Materiality Item FYE March 2026 FYE March 2025
Medium-term targets Annual targets
Corporate management base Compliance
  • There will be no serious regulatory breaches.
  • Focus on the following themes to strengthen compliance at group companies.
  •   - Prevention of insider trading
      - Human rights in the supply chain
      - Human rights due diligence
      - Anti-bribery and anti-corruption

Internal Reporting System

The Yamato Kogyo Group has established an internal whistleblower system based on the "Whistleblower Protection Regulations". All Group employees, including temporary and part-time employees engaged in business within the Group, as well as employees of subcontractors and suppliers, are eligible to use the system, which provides internal and external contact points in Japan.
We accept consultations and reports by telephone, e-mail, fax, writing, and visits at two contact points, inside and outside the company. The Whistleblower Protection Office of Yamato Kogyo (established within the Internal Audit Office) investigates the facts. Regardless of whether the content of the report is true or false, the investigation team will report the results of the investigation to the general manager of the Whistleblower Protection Office and the informant. The General Manager of the Whistleblower Protection Office shall promptly take corrective and preventive measures, and report the results of the investigation and corrective and preventive measures to the President and Corporate Auditors.
In addition, we protect whistleblowers following the Whistleblower Protection Act to ensure that they are not disadvantaged.

Fostering and Spreading Compliance Awareness

Our Group has formulated the corporate philosophy "MISSION, VISION, Yamato SPIRIT" and established the "Yamato Kogyo Group Employee Code of Conduct" as a guideline for realizing the philosophy and promoting compliance.
Compliance awareness is fostered and disseminated through compliance training at the time of employment and by job level, as well as through the monthly "Compliance Bulletin," sent out to all employees.
The following training programs were conducted in fiscal 2023. We will continue to examine ways to provide effective training on an ongoing basis.

Compliance Training Conducted in FY2023

Training Contents Period of implementation Target group
Compliance and Harassment Training Upon hire (scheduled training) New employees and career hires
Compliance and Harassment Training At the time of promotion (scheduled training) Initial supervisor
Compliance Training As needed (E-learning) All employees
Harassment Training As needed (E-learning) All employees