The foundation of all activities: legal compliance, fair corporate activities
Ensuring Full Compliance Awareness
The Group emphasizes the importance of compliance with laws and regulations in the business principle and annual management objectives, and carries out corporate activities in full compliance with laws and regulations. In the event of promulgation of or amendments to legislation pertaining to corporate activities, the Legal Department takes the central role of issuing internal bulletins and sharing their knowledge of these changes. In addition, in order to promote understanding of important laws and regulations, we posted explanatory articles in our company newsletter, and invited outside lecturers to give lectures to our employee. We held the online seminar relating to export control regulations in America and China in February 2021.
All of the officers and employees have submitted a compliance pledge to the company. We have also established disciplinary measures to deal with any inappropriate action that may occur. Furthermore, officers and employees can consult with and report to the Compliance Consultation Office if they discover any violation of the law, regulations, ethical codes, or the company's regulations, including Anti-Bribery Regulations, or if they experience acts of harassment. The Office will then carry out a detailed investigation in response to the information received, and take the necessary corrective actions. Confidentiality will be maintained for consulters and whistleblowers and there will be no unfavorable treatment as a result of consulting and reporting an incident.
Shin-Etsu Chemical Head office
Mr. YA, Legal Department
Compliance with laws and regulations that form the basis of corporate activities
1. Please tell us about your job.
The Legal Department at the Company puts much effort into preventive legal steps, which refers to readying ourselves in advance to avoid causing any legal problem, instead of subsequently dealing with any problem that has occurred. Accordingly, I get involved from the designing stage for an agreement that business division or an administrative department intends to enter into. If there is any issue associated with law or agreement, I work with the business division to ponder a possible solution. Furthermore, as the security export control committee secretariat, I am in charge with reviewing export-related transactions and conducting internal audits. For FY 2020, we carried out researches on export regulation by the U.S. and China.
2. How does the Legal Department share, thoroughly enforce, and educate employees about legal compliance?
We conduct the following multifaceted activities:
- ・Implementation of in-house trainings (rank-based trainings, etc.)
- ・Notification of revisions to laws and regulations and posting them on the Intranet
- ・Publication of articles related to laws and regulations in company newsletters
- ・Implementation of online lectures
- ・Regular internal lectures by lawyers
Please tell us about legal compliance-related initiatives done by the Legal Department.
The Legal Department worked to notify and disseminate law revisions, kept various regulations in order and held study sessions. For the FY 2020, on February 18, 2021, the department held an internal seminar on the theme of developments in export regulation by the U.S. and China (online seminar), a security export control seminar, which was attended by over 100 persons including those from Shin-Etsu Group companies.
4.What are your thoughts on legal compliance going forward?
For example, antitrust laws apply universally to all departments, unlike business laws that apply only to certain business departments. In addition to sales departments, it involves a variety of corporate activities, including purchasing, R&D, and business combinations1. In order to comply with these regulations, it is important to share the content of the regulations throughout the company. I will continue to share important laws and regulations with the company.
1 Business combinations
Organizational restructuring activities such as mergers, corporate splits, share exchanges, and share transfers
Initiatives Aimed at Preventing Corruption
The company has created "Anti-Bribery Regulations" and prohibits actions that involve the unfair transfer of profit from or to parties, and has received compliance pledges from all officers and employees. Simultaneously, we prevent the provision of unfair benefits or demands thoroughly with respect to our customers, domestic or foreign government officials, and suppliers. The status of compliance with ethical standards is also included in personal evaluations, and we carry out regular internal audits for corruption, embezzlement, and bribery.
Supporting GCNJ's "Tokyo Principles for Strengthening
The Group's business principle includes "observing all laws and regulations as well as conducting fair corporate activities," and we are working to prevent corruption, including bribery. The Global Compact Network Japan's Tokyo Principles for Strengthening Anti-Corruption Practices correspond with the Group's current policy and initiatives for preventing corruption, so we immediately decided to support them and became a signatory in February 2018.
We will continue to make it our principle to comply with laws and regulations and carry out business activities fairly, and work to conduct business in accordance with the Tokyo Principles and our internal anti-corruption regulations.
GCNJ's "Anti-Corruption Annual Forum 2019”
Announcing the "Declaration of Partnership Building"
We announced the "Declaration of Partnership Building" in December 2020, agreeing with its concept “Building the mutually beneficial relationships among entirety of the supply chain”.
From the viewpoint of maintaining world peace and security, the company has created "Security Control Management Regulations" to comply with the Foreign Exchange and Foreign Trade Act and other export-related legislation. The following shows our initiatives based on this program:
- - Classification, customer review, and transaction review when exporting products
- - Internal audit
- - Training officers and employees and providing instructions to Group companies
Cutting Ties with Anti-social Forces
The Group declares in its "Basic Policy on Internal Controls" that the Group shall adopt a firm attitude towards anti-social forces and shall take the measures necessary to cut itself off from any and all associations with them. In accordance with this policy, we developed internal systems under the leadership of the department in charge of managing these issues, and signed memorandums and letters of confirmation regarding the exclusion of anti-social forces with customers and suppliers. In addition, we are working closely with external specialized agencies.