Basic ideas and policies
Every country and region in which Resonac operates has its own customs, and laws and regulations differ from country to country. To ensure our company is one that can compete globally, each and every Resonac Group employee must act with high ethical standards that go beyond compliance with laws and regulations no matter when or where, even if rules do not clearly stipulate a course of action. Our aim is to become a company that helps bring about a sustainable society.
To realize our Purpose (raison d'être) of "changing society through the power of chemistry," we must fulfill our responsibilities to all stakeholders and continue to provide value at all times. One of the key elements forming the foundation of our efforts is thorough compliance.
Basic policy on compliance
Resonac believes that "soft law”-based compliance that goes beyond legal compliance is an essential business continuity principle in following our management philosophy, and we are committed to developing systems and activities to ensure not only compliance with the laws and regulations of each country and region as well as their social norms, but also the instillation of ethical values based on honesty, fairness, and integrity. The Compliance Division has established the Global Compliance Standard ("GCS") as a framework to be put in place by the entire Group. The Company’s management is leading the way in developing the GCS and fostering a culture in which no employee will tolerate any form of impropriety.
Global Compliance Standard (GCS)
The GCS defines the system and framework that Resonac must establish to meet the standards of compliance required by the international community above and beyond legal compliance. We have established regulations to specifically reflect individual rules and procedures in our day-to-day operations. In addition to the GCS, our Compliance Division regularly monitors compliance with the Group Code of Conduct, including its anti-corruption provisions. Our internal audit team also regularly audits the entire Group to ensure compliance with compliance procedures. We are committed to properly designing and effectively enforcing the GCS, not only to prevent and detect misconduct at an early stage but also to respond promptly in the unlikely event that misconduct is discovered.
The following KPIs are being pursued as material issue KPIs.
Progress made in achieving material issue measures and KPI
Education and awareness activities
Resonac continuously conducts education and awareness activities for all directors and employees to ensure that the Code of Conduct and the GCS are widely understood and put into practice.
During Corporate Ethics Month (October), a message from the Group CEO is sent to all Group employees in Japan and overseas. Individual workplaces use the Code of Conduct revised in 2023 to discuss topics familiar to the organizations to which they belong, their feelings garnered by their day-to-day work, and ideas they would like to keep in mind in the future. Education on the Code of Conduct is also provided to all Group executives and employees. The content of this training includes risk areas pertaining to anti-corruption, and it is regularly reviewed by the Compliance Division.
We are encouraging better understanding of the provisions of the Group's Code of Conduct and GCS to ensure thorough compliance and honest business conduct. Furthermore, we systematically and continuously hold in-house study sessions and engage in communications to ensure that employees fully comprehend not only the wording of the rules but also their background and the reasons the rules are necessary.
Compliance risk management
The Compliance Division identifies and mitigates compliance risks in advance. It conducts periodic risk assessments of all our business processes and pursues improvements to reduce risks under the ownership of our business execution divisions based on the risk management approach we are taking on a global basis.
An internal reporting system has also been established to allow employees to report any violation or suspected violation of laws, regulations, etc., and we promptly investigate the facts, determine the causes, and take action to correct the situation and prevent recurrence. The personal information of whistleblowers is strictly protected, and whistleblowers are never treated unfairly.
The Code of Conduct clearly states that executives and employees may not accept gifts, entertainment, or other benefits from business partners or company customers that are beyond the scope of social common sense, may not provide similar benefits to government agencies, business partners, or company customers, and may not engage in any acts that may give rise to conflicts of interest or insider trading.
Resonac Group Hotline
We have established a "Resonac Group Hotline" to discover violations of corporate ethics, such as compliance violations and fraud, early on and help resolve them.
The Hotline may be accessed on our website, our intranet, or through an outside law firm, and accepts reports not only from Group employees but also from suppliers, local residents, and other stakeholders. We have also established a multilingual whistleblower hotline (an external hotline available in 24 languages) for employees around the world. Anonymous reporting is possible both in Japan and overseas, and it is made clear that individual privacy will be respected by all hotline operators and that prejudicial treatment by the company is prohibited.
Reports to the Hotline are received through internal or external contact points, and the Compliance Division confirms the facts and conducts an investigation after consulting with the business unit, plant, or other organization where the report was received. If the investigation results reveal any violations, corrective measures are promptly taken.
Serious cases are reported to the Management Committee, with these reports covering the entire process from the initial call to the conclusion of the investigation as well as any corrective measures and measures to prevent recurrence taken.
A total of 81 reports were received in 2022. Of these, ten were reports of concerns about legal violations, but none of them proved serious enough to be reported to the Management Committee. Each case was promptly and carefully investigated internally, and corrective measures were taken when necessary. With regard to cases of sexual harassment, power harassment or other forms of harassment that account for half of all consultations, we have conducted training for managerial personnel at Group companies in Japan to prevent such incidents from happening or stop them from recurring.
The Resonac Group set the tax code of conduct based on the recognition that it is one of the social responsibilities of an enterprise to contribute to society’s growth through tax payment in all countries and regions where it conducts business activities. We will make appropriate and prompt responses to the taxation system and regulations of each country and region, while continuing to provide employees with training to maintain and raise their tax compliance awareness.