- Sustainability TOP
- Governance
- Compliance
Compliance
Basic Approach
Isuzu recognizes that it is essential for each one of our executives and officers to follow Isuzu's compliance standards—that is, to comply with laws and regulations and also maintain high ethical standards that live up to the trust society places in us. In particular, Isuzu has positioned thorough compliance with laws and regulations as the highest priority in its business management. In 2005, Isuzu formulated and began implementing the Basic Policy for Compliance, and thereinafter the Company has been making efforts to disseminate and establish the policy among all officers and employees. The policy consists of seven categories and states that, if an incident occurs and causes the policy to be violated, senior management personnel must execute measures for problem resolution and investigation of the cause in an effort to prevent recurrences and must disclose information quickly and accurately to society and fulfill their accountability. We regularly assess the effectiveness of our basic compliance initiatives and update them as necessary under the supervision of the Board of Directors.
Basic Policy for Compliance
1. Winning the trust of our customers
We aim to win the trust of our customers by providing valuable products and services to society, and thus contribute to the creation of a prosperous society.
2. Promoting fair and sound activities
Isuzu does business based on fair and free competition. We also maintain sound and standard relationships with the government and politicians and act decisively as a corporate citizen against anti-social forces and organizations.
3. Ensuring fair disclosure of corporate information
We broadly communicate with our stakeholders as well as society as a whole, and ensure timely, appropriate, and fair disclosure of our corporate information.
4. Respect for employees
We create a safe and comfortable work environment that respects each employee's personality and character so that everyone can fully demonstrate their capabilities.
5. Contributing to environmental conservation
We actively work on environmental conservation not only through our business activities, but also as a resident of the planet by getting involved in social and regional environmental conservation activities.
6. Contributing to society
Isuzu proactively undertakes social contribution activities as a good corporate citizen.
7. Ensuring harmony with international and regional communities
We respect the cultures and customs of nations and regions and contribute to their development
Management Structure
The Compliance Committee has been established as an advisory body to the President to ensure the openness and transparency necessary to promote compliance, and to strengthen Isuzu's compliance by receiving objective advice and guidance on policies and systems for compliance activities, confirmation of the operational status of each consultation counter, and other matters.
This Committee is composed of seven members, including external experts (such as university professors and lawyers) appointed as committee members, as well as three Executives. The committee meets every three months.
The Committee is also informed of the content of reports and consultations received at each consultation desk and oversees specific measures and their progress.
Establishment of an Employee Consultation Service
Isuzu has established three consultation counters for internal reporting and consultation on compliance issues, including comprehensive corruption practices such as discrimination, harassment, hospitality, gift-giving, and insider trading. These counters are:
1. Workplace Counter (Supervised by the immediate supervisor)
2. Intra-Division Counter (Supervised by the division manager)
3. Company-Wide Counter (Supervised by the Risk Management Dept. Compliance Management Group)
These contact points act as impartial receivers of information and serve not only in cases of clear violations of laws and regulations or internal rules but also for consultation on matters that appear suspicious and as a contact point for inquiries regarding internal rules and laws and regulations related to business operations. In addition to handling compliance-related matters, these counters also serve as points of contact for human rights-related inquiries and reports.
A suggestion box (External Point of Contact) has also been set up at an external law firm.
The internal and external consultation offices accept consultations and inquiries by e-mail, fax, telephone, and letter. In accordance with the Whistleblower Protection Act, the names of individuals who provide information and the content of such information are treated as confidential information and are protected to ensure that individuals will not be treated unfairly within the Company.
To promote awareness of these consultation services, we distribute a Compliance Guidebook and Compliance Consultation Counter Card to all employees, which include contact information for each consultation service and the suggestion box. Additionally, Isuzu regularly informs employees of their contact point through Isuzu Quality and Compliance Promotion Meetings, posters, and other means. The Compliance Management Group of the Risk Management Dept. serves as the secretariat for matters reported or discussed at each contact point and works to confirm the facts and make improvements.
If any compliance concerns arise from the reports or consultations received at each counter, the Risk Management Dept., under the supervision of the Board of Directors, conducts a thorough investigation and resolution in collaboration with the Legal Dept. and other relevant divisions. To maintain the highest standards of compliance, Isuzu will continue to regularly assess and verify the effectiveness of its compliance measures and make improvements as necessary.
In FY2024, there were 42 cases (8 cases related to the Company and 34 cases related to Group companies) that were reported to or consulted on by the external consultation service.
Moreover, the total number of reported violations was 11 (1 case related to the Company and 10 cases related to Group companies). Those requests received through the internal and external consultation services were handled appropriately, and we confirm that there have been no serious compliance violations. The status of compliance efforts and the number of consultations and serious violations are reported to the Board of Directors.
Business Partner Consultation Service
We also have a Business Partner Consultation Service within our Risk Management Depts. Compliance Management Group to provide our business partners with impartial consultations on compliance-related matters. We handle the personal names of information providers and the content of consultations as confidential information in accordance with the Whistleblower Protection Act.
Isuzu Group Compliance Promotion System
Isuzu Quality and Compliance Promotion Meetings are held monthly, attended by compliance promotion committee members of the different divisions. The meetings are committed to the prevention of compliance risks through the sharing of information among divisions and the reporting of activities. Isuzu has also built a Group-wide system to prevent compliance risks. Domestically, we hold regular compliance promotion meetings attended by companies of the Isuzu Group, in an effort to promote the sharing of information and related activities. In our overseas locations, we share information with contact persons of the Isuzu Group companies periodically and make efforts to prevent compliance risks. Particularly in Thailand, home to one of Isuzu's main overseas bases, we regularly hold joint compliance promotion meetings of the Isuzu Group companies based in Thailand to facilitate the sharing of information and related activities.
In the event that a serious problem occurs, we will promptly receive reports from the company in accordance with the Group-wide management rules and will work with the company to resolve the problem.
Initiatives
Activities to Address Group-wide Issues (in Japan)
In Japan, we identify Group-wide issues and make Group-wide efforts to resolve them. For example, as individuals involved in the automotive industry, we encourage each employee to be aware of their responsibilities. We also work to eradicate drunk driving by promoting the key concepts of 'not driving under the influence' and 'not allowing others to drive under the influence,' extending this awareness to their families, friends, and acquaintances. More specifically, we collect written pledges to eradicate drunk driving and hold regular seminars with the aim of renewing employees’ awareness about the dangers inherent in drunk driving and the graveness of the social responsibilities that it entails.
We also consider that building good human relations in the workplace is important for preventing harassment. For example, we organize regular workshops for managerial-level and general employees to deepen their understanding of the significance of regular, bidirectional communication between supervisors and subordinates.
Compliance Surveys (Japan)
To confirm the spread of compliance awareness and identify compliance risks, we conduct regular Compliance Surveys. The survey results are reported to the managers and compliance officers of Isuzu Group companies and are applied to the companies' activities. The FY2024 survey covered about 11,000 employees of Isuzu Group companies and included questions on topics such as compliance training and guidance, overtime work, finding facts about harassment and awareness of drunk driving.
Activities of Overseas Group Companies
In Thailand, home to one of our major overseas locations, Isuzu follows the compliance activity plan. For example, we organize hierarchical workshops and e-learning and put up posters to raise awareness about the need to eradicate drunk driving and about compliance. Isuzu supports the promotion of compliance activities by holding regular compliance promotion meetings jointly with Group companies in Thailand to confirm progress and provide advice.
Compliance Training
Isuzu provides its employees and Group companies with compliance education via classroom lectures and online in an effort to raise their awareness about compliance even more.
As an example, our Compliance training for new managers includes bullying and harassment prevention, providing education on their definitions, examples, and the appropriate response in case such incidents occur.
Additionally, personnel in charge of the company-wide consultation desk undergo training hosted by the Compliance Promotion Organization, which covers confidentiality protections to ensure whistleblowers are not disadvantaged, as well as case studies simulating actual reports. They also acquire the qualification of Compliance Advisor. With consideration of the COVID-19 situation, training programs and lectures were held online in FY2024. In this way, we take appropriate measures to prevent infections.
Training themes (examples)
- Basic compliance training for new employees
- Compliance training for new managers
- Training for new officers transferred to Isuzu Group companies
- Education on the Act Against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors
- Anti-Drunk Driving Seminar
- Compliance training for mid-career recruits
- Training for new directors
- Harassment prevention training for managers
- Education on the authorized exporter declaration procedure
Publication of Compliance Guidebook
In January 2006, Isuzu issued and started distributing a Compliance Guidebook which is a compilation of codes of conduct to communicate the basic attitudes and principles required of all officers and employees of Isuzu. Additionally, we create division-specific compliance guidebooks that compile cases of potential compliance issues that could arise from daily operations within each division or department, and distribute these guidebooks to the members of each department. These guidebooks are reviewed every year and are updated to reflect any amendments to relevant laws and regulations and to encourage a better understanding among employees.
Anti-bribery Initiatives
Based on the supervision of the Board of Directors, we have established behavioral guidelines in the Compliance Guidebook regarding the prohibition of entertainment and gifts, insider trading, the prohibition of entertainment and gifts to public officials, quasi-public officials, and foreign public officials, as well as the prevention of money laundering and bribery. We make thorough efforts to ensure that all Isuzu officers and employees are informed of the code of conduct.
For example, regarding the prohibition of entertaining and gift-giving, we have established a Guideline on Entertaining and Gift-Giving and ensure it is thoroughly communicated to employees.
Additionally, we conduct company-wide awareness and training sessions on insider trading prohibition by regularly disseminating insider trading prevention regulations and conducting internal training. Furthermore, in cases where political donations or other political-related payments are made, we strictly adhere to relevant laws and ensure rigorous management to avoid any illegal political contributions. In FY2024, no fines or other actions have been taken by the regulatory authorities in connection with this matter.
Prevention of Anticompetitive Practices
In its Compliance Guidebook, Isuzu requires all of its officers and employees to thoroughly comply with the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade and the Act Against Delay in Payment of Subcontract Proceeds, Etc. to subcontractors. Periodically provide education on the Act Against Delay in Payment of Subcontract Proceeds, Etc. to subcontractors. and other related subjects whenever necessary in thorough pursuit of compliance with the laws.
Tax Policy
Isuzu Group regards tax payment as an important duty of a corporate citizen. To contribute to society through appropriate tax payment, we have established this tax policy and applied it to our Group companies.
- Compliance with Laws and Regulations
We will correctly interpret tax laws and related guidelines of all countries and regions where we conduct business activities, and pay appropriate taxes in accordance with their intent. - Prohibition of Tax Avoidance
We do not engage in tax avoidance activities that deviate from the intent and purpose of tax laws and regulations, such as transferring created value to low-tax jurisdictions, using schemes without real business substance, or utilizing tax havens. - Appropriate Transaction Pricing and Profit Sharing
In transactions with foreign affiliates, we will set prices that take into account arm's-length prices and pay appropriate taxes in accordance with the reality of local business activities. - Maintaining Good Relationships with Tax Authorities
We build and maintain good relationships with tax authorities both domestically and internationally based on a correct understanding of tax laws and regulations. - Tax Transparency
We will strive to disclose tax information to all stakeholders in a timely and appropriate manner. - Governance
The Group CFO will establish a governance structure to effectively ensure that proper tax operations of the Group are conducted in accordance with this tax policy.