- Sustainability TOP
- Governance
- Compliance
Compliance
Basic Approach
Isuzu recognizes that it is essential for each one of our officers and employees 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 thereafter 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, chaired by the President and COO, has been established under the monitoring of the Chairman and CEO. The Committee members are the general managers of each division that is responsible for important laws and regulations, and the Audit and Supervisory Committee members and the Corporate Audit Dept. serve as observers. The Committee deliberates on compliance policies, plans, KPIs, and the status of their implementation, and determines the direction of compliance promotion for the Company and the Group.
The Committee is also informed of the content of reports and consultations received at each consultation desk and oversees the status of the resolution process.
Establishment of an Employee Consultation Service
Isuzu has established three internal consultation counters for reporting and seeking advice on compliance-related issues, including comprehensive misconduct such as discrimination, harassment, inappropriate hospitality or 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), and
(3) Company-Wide Counter (supervised by the Compliance Management Group within the Enterprise Risk Management Department).
Each counter serves as an impartial and neutral point of contact, accepting not only reports of clear violations of laws, regulations, or internal rules, but also consultations regarding potentially suspicious matters. They also respond to inquiries about internal rules and laws related to business operations. In addition to compliance-related matters, these counters also function as contact points for human rights-related consultations and reports.
Furthermore, a suggestion box (external point of contact) has been set up at an external law firm to provide an additional channel for consultation.
Both internal and external consultation offices accept inquiries via 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 reports are treated as confidential and protected to ensure that no individual is subject to unfair treatment 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 posters and other means. The Enterprise 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 Enterprise Risk Management Dept., under the supervision of the Board of Directors, conducts a thorough investigation and resolution in collaboration with the Legal Dept., the HR Services Dept., and other relevant divisions.
In fiscal 2025, there were 70 cases (17 cases related to the Company and 53 cases related to Group companies) that were reported to or consulted on by the external consultation service. The total number of reported violations was 16 (1 case related to the Company and 15 cases related to Group companies). Those reports received through the internal and external consultation services were handled appropriately, and we have confirmed that there were no serious compliance violations. The status of compliance efforts and the number of consultations and serious violations are regularly reported to the Board of Directors.
Business Partner Consultation Service
We also have a Business Partner Consultation Service within our Enterprise 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 Group-Wide Issues (in Japan)
In Japan, we identify Group-wide issues and make Group-wide efforts to resolve them. For example, to eradicate drunk driving, we encourage each employee to be aware of their responsibilities as individuals involved in the automotive industry. We stress the importance of not driving under the influence or allowing others to do so, and encourage employees to share this awareness with 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 (in Japan)
To confirm the spread of compliance awareness and identify compliance risks, we conduct regular compliance surveys. The survey consists of questions regarding workplace culture and understanding of important legal topics, and is designed to be effective in identifying compliance risks. The survey results are reported to the managers and compliance officers of Isuzu Group companies and are applied to the companies' activities.
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 compliance education to its employees and Group company staff through classroom and online lectures to further enhance their awareness of compliance.
One example of compliance training for new managers is is our program on bullying and harassment prevention, in which we provide key definitions, examine case studies, and work through appropriate responses when incidents occur.
Additionally, to further strengthen the compliance culture, Isuzu has introduced a function whereby employees are required to complete a compliance quiz when they log into their computers log onto their computers, thereby raising employee awareness of compliance on a regular basis.
Personnel in charge of the company-wide consultation desk undergo training organized by external organizations and provide appropriate consultation.
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 education
- 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 have issued division-specific compliance guidebooks that compile cases of potential compliance issues that could arise from daily operations within each division or department, and distributed 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
Under the supervision of the Board of Directors, we have established a code of conduct in the Compliance Guidebook covering the prohibition of entertainment and gifts (including to public officials, quasi-public officials, and foreign public officials), insider trading, and 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 entertainment and gifts, we have established guidelines on entertaining and gift-giving and ensure they are thoroughly communicated to employees. Additionally, with respect to the prohibition of insider trading, we conduct company-wide internal training sessions and periodic dissemination of insider trading prevention regulations. 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 fiscal 2025, no fines or other actions have been taken by the relevant regulatory authorities with respect to this matter.
Prevention of Anti-Competitive here Practices
In its Compliance Guidebook, Isuzu stipulates compliance 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, and requires all of its officers and employees to strictly adhere to these laws. In addition, we provide education on the Act Against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors and other related matters to relevant divisions within the Company as necessary to ensure thorough 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
CFO will establish a governance structure to effectively ensure that proper tax operations of the Group are conducted in accordance with this tax policy.