Efforts on Compliance

Taikisha has set out the "Taikisha Ltd. Code of Conduct" as a code for ethics and compliance of all officers and employees. In accordance with the Mission Statement: "Customers First", Taikisha is making efforts to enhance a system to conduct fair and sound business activities and contribute to society.

Compliance System

To raise the awareness of corporate ethics and compliance among all officers and employees and to enhance compliance management, Taikisha has established the Compliance Committee and the Corporate Compliance Department.Taikisha has also assigned Compliance Officers and established a Whistle-blowing Contact Window. The Corporate Policy review Meeting is held to examine the annual policy and plan for compliance activities and to validate the implementation status thereof.

The Compliance Commitee is chaired by the President and Reppresentative Director, and holds monthly meetings. The Compliance Committee examines and responds to issues regarding compliance in the overall business operations of the Company and validates the status of compliance with laws and regulations. In the event of singns of compliance with laws and regulations. In the event of signs of a siggnificant event, the Corporate Compliance Committee consisting of all officers shalll be convened in order to deal with such event.

The Corporate Compliance Department, an independent department under the direct control of the President and Representative Director, prepares and distributes compliancemanuals, disseminates information via the cooperate intranet,makes the Whistle-blowing System well known, implements compliance education, monitors status of compliance with laws and regulations, and provides guidance on improvement on an ongoing basis based on the annual policy and plan for compliance activities.In addition, the department reports on the status of its activities to the Compliance Committee.

Diagram of Taikisha's Compliance System

Taikisha works to enhance tax compliance and properly pays taxes in accordance with applicable tax-related laws and regulations of each country and region and international rules.

Efforts to Firmly Establish Compliance

Taikisha distributes the Compliance Manual that summarizes the standards of practice for compliance to all employees, in an effort to familiarize them with compliance and thoroughly enforce compliance among them. Having designed October of each year as the Compliance Promotion Month, Taikisha strives to spread and instill compliance awaness by holding read-thorough sessions of the Compliance of each year as the Compliance Promotion Month, Taikisha strives to spread and instill sompliance awareness by holding read-through sessions of the Compliance Manual targeting all employees, asking employees to sign a pledge, and calling for entries of compliance slogans internally. The entires involve iinviting taikisha Group's employees broadly to display the best slogans in Japan and overseas, respectively, in the form of awareness-raising posters in the corporate offices and on-site offices.

As part of efforts to instill its Corporate Philosophy and Taikisha’s Code of Conduct as well as to implement compliance education, Taikisha conducts e-learning targeting all employees. In the e-learning program, questions are given from items that Company employees should understand, such as the Construction Business Act, the Antimonopoly Act, prevention of improper handling of construction costs, prevention of harassment, and information leakage. Efforts are made to improve the effectiveness of the program, such as using video contents.

The Company conducts training targeting employees in Japan and overseas in order to reduce the risk of compliance violations by familiarizing them with important laws, regulations and internal rules that are deemed to have a huge impact if violated. In FY2021, training sessions were conducted in Japan on prevention of improper handling of construction costs (for technical staff) and prevention of bid rigging (for sales staff). At overseas, training sessions were held on Corporate Philosophy, prevention of improper handling of construction costs, prevention of power harassment, information leakage, and Whistle blowing System.

Overview of e-learning

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Date Number of participants Question theme
First session:October 2021 1,617(100% attendance) Kickback, abuse of authority
Second session:December 2021 1,614(100% attendance) Transfer of costs, abuse of authority
Third session:February 2022 1,611(100% attendance) Abuse of authority

Compliance Awareness Survey

In FY2021, we conducted a compliance awareness survey to all employees of the Company to confirm the degree of compliance awareness. The results of the survey are fed back to each business division and each branch in Japan, and efforts to raise the degree of awareness continue to be made by improving the workplace environment and reflecting the results in compliance activities.

Overview of compliance awareness survey

Period September 21 to October 22, 2021
Number of employees 1,658
Number of respondents 1,539 (response rate 92.8%)

Monitoring of Compliance Risk

The Corporate Compliance Department regularly monitors branches and affiliates in Japan and overseas on the status of compliance with laws and regulations. The Corporate Compliance Department evaluates the results of monitoring a three-point-grading of A, B, and C, and provides guidance on recognition of issues and improvement.

In the monitoring of branches in Japan, the Corporate Compliance Department broadly checks and validates the status of compliance with and application of laws and regulations, including the Antimonopoly Act, and internal rules, as well as the status of dissemination of Taikisha’s Code of Conduct and the Whistle-blowing System, and issues such as work environments. In addition, the Corporate Compliance Department validates the conditions and contents of contracts with the business partners in Japan and ensures that there is no inappropriate activities by the employees of the Company regarding the business partners, and disseminates its Whistle-blowing Contact Window among business partners.

In the monitoring of overseas affiliates, the Corporate Compliance Department checks and validates the status of operation for complying with laws and regulations related to bribery, bid rigging, cartels, etc., the status of dissemination of the Whistle-blowing System, and issues to improve the working environment.

Compliance Risk Grading in Monitoring

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Grade Rated at three levels
A Minor incidents have occurred. However, the business office has detected them on its own and voluntarily dealt with them in an appropriate manner.
B Non-minor incidents have occurred. The system for compliance with laws and regulations, etc. needs to be improved.
C Serious incidents have occurred. There is a risk of corporate failure or a risk equivalent thereto.

Whistle-blowing System

Taikisha has the Whistle-blowing System in place to identify at an early stage and resolve violation of laws, regulations and internal rules, and has a Whistle-blowing Contact Window in the Corporate Compliance Department and a law firm. The hotline is also available to employees of the affiliates as well as employees of business partners.

In operating the Whistle-blowing System, Taikisha ensures that whistleblowers are protected by stipulating in its Whistle-blowing Rules that information on whistleblowers shall be kept confidential and that dismissal and other disadvantageous treatment of whistleblowers on the grounds of their whistle-blowing is prohibited.

In FY2021, the Company’s and major affiliates’ Whistle-blowing Contact Window received 23 cases and took appropriate actions upon prompt investigation of each of these cases.

Whistleblowing Flow Chart

Taikisha Ltd. Code of Conduct

Principles of Behavior

  1. We will act in compliance with laws, ordinances, regulations, ethics, dictates of good sense, and internal rules.
  2. We will pursue a highly transparent management on the basis of fair and reasonable standards.
  3. We will act giving first priority to our customers, business partners, shareholders,, communities/society, and the global environment and will also give appropriate consideration to the human rights of employees.
  4. We will make efforts not to destroy the trust we have built over the years or to undermine our business profits, while working to enhance our corporate value.

Ethical Standards

Respect for fundamental human rights and maintenance of a healthy work environment

  1. We will respect the fundamental human rights of all employees and supervisors in our corporate activities and will not discriminate on the basis of matters irrelevant to the business of the Company, such as race, religion, belief and creed, national origin, gender, disability, physical features, or age.
  2. We will prohibit all forms of sexual harassment or abuse of position or status in the workplace, whether intentional or unintentional.
  3. We will pay close attention to construction safety standards and work to prevent accidents.
  4. We will implement measures such as physical checkups in order to maintain the mental and physical health of employees.
  5. We will respect the privacy and protect the personal information of employees. We will also protect the personal information of people outside of the Company.

Maintaining a good relationship with our stakeholders

We will establish and advance the following objectives for both the satisfaction of our stakeholders (customers, business partners, shareholders, employees, communities/society, and the global environment) and the enduring development of the Company:

  1. To obtain the satisfaction and trust of our customers by developing excellent technologies and providing high-quality equipment.
  2. To appropriately distribute the ensured profit to dividends, investment, personnel expenses, etc., and to properly pay taxes.
  3. To strive to improve the transparency of the management, including corporate accounting, and to disclose corporate information appropriately in accordance with laws, ordinances, and regulations. To prohibit employees from any wrongful trading of shares, etc. on the basis of insider information.
  4. To perform equal and fair transactions, enhance the transparency of contracts, and comply with relevant laws and ordinances in pursuit of coexistence and co-prosperity with our suppliers and sub-contractors.
  5. To give consideration to the residents in the neighborhoods of our branch offices, construction sites, and laboratories, and to comply with arrangements with the residents.
  6. To strive for the conservation of the global environment through activities such as natural resource saving, energy saving, waste reduction, reusing, and recycling. To disclose our environmental conservation activities to society through appropriate channels of public relations.

Maintenance of trust

  1. Officers and employees must respect the trust and reputation of the Company and act in accordance with the dictates of social good sense.
  2. We will refuse to have anti-social forces, including organized crime groups(Boryoku-dan), involved in our business, and will reject any demands made by them. We will prohibit employees from having any relation with members of said groups.

Free competition, fair trading, business entertainment and gifts

  1. We will comply with laws and ordinances including the Anti-Monopoly Law in order to realize fair competition and fair tender.
  2. We prohibit any bribery, unfair profit sharing, or facility offering, and will comply with relevant laws and ordinances including the Political Funds Control Act and the Public Offices Election Act.
  3. Business entertainment and gifts should be provided or received on the basis of social good sense; therefore, receiving business entertainment or gifts that may affect judgment on the performance of certain business is prohibited.

Asset management and respect for property rights

  1. The employee's use of any assets of the Company for purposes other than pursuit of profit of the Company is prohibited.
  2. We will respect the rights of property owned by any corporate or individual persons other than the Company and will never damage or infringe such property and rights. This includes intangible rights such as intellectual property rights.

Handling of confidential information

  1. Employees must not leak any information obtained in the course of business activities except for facts that have already become publicly known. In particular, information provided by other companies must be kept under strict control.
  2. Employees must not access internal or external information using wrongful means.
  3. Such handling of information as noted above will apply equally to our retired employees, temporary employees, employees on subcontracts, and business partners.