Compliance
Policy and Approach
Based on the Kumiai Chemical Group Basic Policy on Compliance, we promote and raise awareness of compliance by providing constant compliance education and awareness-raising activities to foster a corporate culture that enables officers and employees to act in accordance with our corporate philosophy and Code of Conduct.
To ensure that every officer and employee acts in accordance with our corporate philosophy and Code of Conduct and demonstrates correct behavior, we have established a set of guidelines, the Kumiai Chemical Ethical Standards, which are also included in the booklet and inculcated in our group.
Kumiai Chemical Group Basic Policy on Compliance
The Kumiai Chemical Group promotes and raises awareness of compliance by providing constant compliance education and awareness-raising activities to foster a corporate culture which enables officers and employees to act in accordance with our Corporate Philosophy and Code of Conduct.
Three fundamentals of compliance
- Stimulate communication in workplaces
Officers and employees can always raise the alarm, ask for help when they need it, communicate their perceptions to their supervisors and seniors, and speak up when they feel uncomfortable in workplaces. - Officers and employees consider their own words and actions from the perspective of how they would be viewed by the public if they were featured on the television news.
Officers and employees take a moment to stop and think calmly to ensure they do not misjudge the perspective of society (common sense and feelings of the public). - Act based on an awareness of representing the company at all times
Each and every officer and employee should be aware that they represent the company at all times. It is obvious to others that officers and employees are with the company, although they themselves may forget it. Officers and employees will always be associated with the company in the minds of others even after they leave the company.
Based on these three fundamentals of compliance, we pursue not only “defensive compliance,” but also “offensive compliance,” and strive to earn the trust of society and achieve the sustainable enhancement of corporate value.
Monitoring and Control with Compliance and Internal Control
Our group performs mutual monitoring and control within business divisions and within departments from the perspective of compliance and internal control.
To prevent misconduct and mistakes by individuals, we conduct routine three-way monitoring at each workplace, including ①daily monitoring by supervisors, ②cross-monitoring among colleagues in the workplace, and ③sharing individual awareness with superiors and seniors. This routine monitoring is the first line of defense. We have also added monitoring that is handled by management divisions and internal audits to increase the effectiveness of internal control.
There could be cases where a certain custom in a company is actually a law violation without it being recognized as misconduct. Therefore, speaking up when something seems wrong is consistent with our Code of Conduct, “Acting with Integrity.” We emphasize integrity and strive to enhance the effectiveness of internal controls by promptly addressing misconduct or mistakes.
System
We have the Risk Management & Compliance Committee (comprising full-time Directors and Executive Officers), chaired by the Representative Director, President. The Committee meets once a year and additionally whenever necessary. It deliberates on and approves the implementation plan of the compliance program formulated by each department, and monitors their implementation status. Furthermore, the results of compliance awareness surveys, compliance promotion activities, anti-bribery measures, and human rights issues are discussed.
In addition, we have established an internal reporting desk to verify facts and take corrective measures through an independent investigation system. The results are reported to the Risk Management & Compliance Committee.
Compliance Promotion
Internal reporting system
We have established an internal desk operated by the Legal & Compliance Department and an external desk operated by a specialist company. The external desk also serves as the contact point for internal whistleblowing※ and accepts reports from officers and employees of our group. Reports of harassment or compliance violations may be submitted either under the reporter’s real name or anonymously. Upon receiving a report, we conduct an investigation, implement corrective actions, and take measures to prevent recurrence in accordance with internal regulations. These regulations ensure confidentiality and protect whistleblowers in handling reports, and also require appropriate remedial and restorative measures if any adverse treatment occurs as a result of reporting. The regulations are communicated to all officers and employees. The handling of reports is reported to the President, the officer in charge of the Legal & Compliance Department, and full-time Audit & Supervisory Board Members to ensure appropriate monitoring. The contact information for the external consultation desk is communicated to officers and employees through posters and the Compliance Newsletter to enhance the effectiveness of internal reporting.
- Whistleblowing: The act of a worker, former employee, or officer reporting misconduct by the party they serve through a designated reporting channel, without improper intent.
| FY2022 | FY2023 | FY2024 | FY2025 | ||
|---|---|---|---|---|---|
| Number of reports and consultations made to the internal reporting system (Helpline) | Cases | 13(5) | 13(6) | 14(6) | 14(7) |
| Fines and settlement costs related to bribery | Millions of yen | 0 | 0 | 0 | 0 |
| Fines and settlement costs related to anti-competitive practices | Millions of yen | 0 | 0 | 0 | 0 |
| Kumiai Chemical Group (Kumiai Chemical Industry only) | |||||
Compliance Education
We conduct compliance training for new graduate hires and mid-career hires. In addition, we introduced a mandatory e-learning course for all officers and employees to promote the acquisition of a broad range of knowledge, including compliance, harassment, and corporate ethics.
To foster a corporate culture rooted in compliance, we produced booklets on compliance, sustainability, and the concept of belonging, as well as cartoon-illustrated CSR guidebooks, “Introduction to CSR for Business persons” and “Introduction to CSR for Business persons Part 2.”
By distributing these materials to all officers and employees of our group and encouraging their use, we are raising the level of awareness throughout our group.
Compliance awareness survey
Our group conducts a periodic compliance awareness survey covering all employees. The FY2023 survey confirmed that the overall level of employee awareness remains very high. On the other hand, generational differences in awareness regarding harassment and lack of communication in the workplace were identified as issues.
Distribution of a compliance newsletter
As part of our compliance promotion activities, we distribute the Kumiai Chemical Group Compliance Newsletter and Newsletter Plus to all officers and employees of our group each month.
In FY2025, an extra issue of Compliance Newsletter Plus featured commentary articles on “Anonymous and Fluid Criminal Groups,” “Preventing Sexual Harassment: The Role of Active Bystanders,” and “Slavery Footprint.”