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.

Basic Policy for Compliance

Compliance Committee

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: a workplace counter (under the supervision of supervisor, an intra-division counter under the supervision of division managers), and a Company-wide counter (under the supervision of the Compliance Management Group, Risk Management Dept.), etc.
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 consultations on matters that appear suspicious and as a contact point for inquiries regarding internal rules and laws and regulations related to business operations. Additionally, a suggestion box (External Point of Contact) has been set up at an external law firm as a contact point in the event that, for whatever reason, it is difficult to consult or resolve a problem through the internal consultation service. 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 familiarize staff with these consultation services, we distribute a Compliance Guidebook and Compliance Card to all employees, which includes contact information for each consultation service and the suggestion box. Additionally, Isuzu informs employees of each contact point through 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.
In FY2022, there were 46 cases (9 cases related to the Company and 37 cases related to Group companies) that were reported to or consulted on by the external consultation service. The 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.

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.

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, regarding efforts to eradicate drunk driving, as part of the automobile industry, Isuzu is raising the awareness of every single employee and makes ongoing efforts to discourage its employees, their families, friends and acquaintances from drunk driving or letting anyone else do so as the keywords. 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)

We conduct compliance surveys every other year within the Company and annually within Group companies to monitor the spread of compliance awareness and uncover compliance risks. The survey results are reported to the managers and compliance officers of Isuzu Group companies and are applied to the companies’ activities. The FY2023 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. With consideration of the COVID-19 situation, training programs and lectures were held online in FY2023. In this way, we take appropriate measures to prevent infections.

Publication of Compliance Guidebook and Compliance Cards

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. Similarly, members of divisions are given division-specific compliance guidebooks that compile cases of potential compliance incidents that may occur from daily work within a division or 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. Our employees are encouraged to always carry a compliance card containing information that is written in these guidelines, including Isuzu’s policy on its compliance efforts, guidelines on compliance-related behavior and contact details of in-house and external consultation resources (helplines).

Overseas Business Guidelines

Isuzu’s business activities are worldwide. To be able to pursue its business while respecting the laws, business customs, and religious/cultural values of different countries and regions, we have created a set of overseas business guidelines and conduct business properly.

Anti-bribery Initiatives

We have a code of conduct on entertainment and gifts as stated in our Compliance Guidebook. We make thorough efforts to ensure that all Isuzu officers and employees are informed of the code of conduct. Guidelines on entertainment- and gift-related conduct set forth more specific instructions. In FY2023, the same approach outlined above applies to foreign officials as well. 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.

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 will not engage in tax avoidance activities that deviate from the intent and purpose of tax laws and regulations.
• 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.
• Healthy Relationships with Tax Authorities
  We build good relationships with tax authorities in Japan and abroad 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.