{"id":3076,"date":"2025-10-29T18:00:55","date_gmt":"2025-10-29T09:00:55","guid":{"rendered":"https:\/\/www.hodogaya.co.jp\/english\/?page_id=3076"},"modified":"2026-03-24T15:14:17","modified_gmt":"2026-03-24T06:14:17","slug":"compliance","status":"publish","type":"page","link":"https:\/\/www.hodogaya.co.jp\/english\/company\/governance\/compliance\/","title":{"rendered":"Compliance"},"content":{"rendered":"
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Basic approach<\/h5>\n

In addition to fully recognizing and consistently applying compliance\u2019s basic meaning of adhering to laws and regulations, the Hodogaya Chemical Group conducts corporate activities keeping in mind its meaning of ensuring behavior in line with what society demands of the Group.
As a result of earnestly implementing compliance and conducting fair, non\u2011discriminatory business activities, there have been no personnel who have been fired and the Group has not had to pay fines or other penalties due to behavior that goes against the legitimate interests of the Group or behavior that undermines trust in and the reputation of the Group.
The Group will also meet the social demands and expectations by fulfilling its responsibility to properly pay taxes in countries and regions throughout the world.<\/p>\n<\/div>\n

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Promotion structure<\/h5>\n

The Hodogaya Chemical Group formulates various rules and regulations based on the Basic Policy on Internal Control, and strives to achieve compliance through organized and cross\u2011sectional initiatives led by the Internal Control Department.
The Internal Auditors Department audits the status of compliance and provides advice and guidance for improvements as required.
Over and above these activities, we have published the Hodogaya Chemical Group Compliance Handbook, which contains data that is closely aligned to the Group\u2019s operations. This Handbook is distributed to all officers and personnel in a bid to raise awareness toward compliance.<\/p>\n<\/div>\n

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Corporate Code of Conduct\uff0cCompliance Action Policy<\/h5>\n

The Hodogaya Chemical Group has established various policies and rules related to its compliance framework, including the Corporate Code of Conduct and the Compliance Action Policy.
All officers and personnel of the Group are required to comply with these rules and to act in accordance with laws and regulations, the Articles of Incorporation, and social norms.
The Corporate Code of Conduct defines the fundamental principles that all officers and personnel must observe in every aspect of the Group\u2019s corporate activities.
Furthermore, the Compliance Action Policy clarifies the Corporate Code of Conduct in a clearer and more concise manner.
It reflects the recognition that the sound development of the Group requires all officers and personnel to have a strong awareness of the Group\u2019s social responsibilities, to ensure thorough compliance with relevant laws, regulations, and internal rules, and to act in alignment with social norms.<\/p>\n

Corporate Action Guidelines <\/i><\/a>\n<\/div>\n

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Tax compliance<\/h5>\n

The Hodogaya Chemical Group responds to social demands and expectations by duly fulfilling its tax obligations in each country and region, in accordance with the Corporate Action Guidelines and the Compliance Action Policy.
To this end, we work to maintain and enhance tax compliance by establishing and maintaining frameworks to accommodate various taxation systems, cooperating in the timely and appropriate submission of tax information to tax authorities, and refraining from arbitrary tax avoidance measures such as shifting income to other countries or using tax havens.<\/p>\n<\/div>\n

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Efforts to Prevent Bribery, Undue Benefits, and Corruption<\/h5>\n

The Hodogaya Chemical Group prohibits bribery, the provision of undue benefits, and acts of corruption in accordance with its Compliance Code of Conduct.
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The Board of Directors supervises initiatives related to bribery, the provision of undue benefits, and corruption as outlined in the Compliance Code of Conduct. In FY2024, there were no subject cases.
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Through compliance training programs conducted multiple times each fiscal year, we provide education to officers and employees on the prevention of bribery, the provision of undue benefits, and acts of corruption. These programs cover topics such as \u201cBasics of Compliance,\u201d \u201cJ-SOX,\u201d \u201cExclusion of Antisocial Forces,\u201d \u201cInsider Trading Prevention,\u201d and \u201cWhistleblowing.\u201d Through these training programs, we also communicate that conduct contrary to corporate ethics\u2014including bribery, the provision of undue benefits, and corruption\u2014is subject to internal reporting.
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In addition, the Internal Audit Department, which reports directly to the President, regularly conducts audits concerning bribery, undue benefits, and corruption across all departments and affiliated companies. The results of these audits are reported to the Audit and Supervisory Committee and the Board of Directors.
\nAs part of our efforts to prevent corruption among our business partners, the Hodogaya Chemical Group has included items related to corruption prevention, including bribery, in its Procurement Guidelines and works to ensure that our partners comply with these standards.
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The Risk Management Committee also classifies bribery, the provision of undue benefits, and acts of corruption as compliance risks, conducts risk analysis and assessments, and carries out continuous monitoring.<\/p>\n<\/div>\n

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Internal reporting system<\/h5>\n

The Hodogaya Chemical Group has established an internal reporting system based on the Internal Reporting Rules in order to ensure early detection and prevention of violations of laws, regulations, and business ethics.
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Reports are received by the Internal Control Department and outside legal counsel.
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Under this system, the privacy of whistleblowers and the confidentiality of reported information are strictly safeguarded during investigations. Our Internal Reporting Rules explicitly provide for the protection of individuals who report in good faith, ensuring that they do not face any disadvantageous treatment\u2014such as dismissal, reassignment, or discrimination\u2014as a result of their reporting.
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Personnel are informed of the internal reporting system during company training, and the status of the system is reported to the Audit and Supervisory Committee.
In FY2024, one internal report was submitted.<\/p>\n<\/div>\n

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Compliance education<\/h5>\n

The Hodogaya Chemical Group is committed to ensuring strict compliance. From the perspective of cultivating and improving compliance awareness, we continuously conduct compliance training for all officers and employees (four times annually), training sessions for officers (once annually), training for officers of Group companies (once annually), as well as individual education through e-learning as a means to thoroughly ensure compliance.
The participation rate of all managerial employees in these training programs has consistently reached 100%. In addition, managerial personnel (including personnel one step prior to their appointment to management) of the Group are required to take the Examination of Compliance Proficiency for Practical Business (Primary Level) to gain knowledge and increase understanding of compliance.
The percentage of qualified managerial personnel currently stands at 99.6% (as of March 31, 2025).<\/p>\n<\/div>\n

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Compliance Training Calendar (FY2024)<\/p>\n

\n\n\n\n\n\n\n
Training<\/td>\nApril<\/td>\nJuly<\/td>\nDecember<\/td>\nJanuary<\/td>\nFebruary<\/td>\n<\/tr>\n
Issue-based training (1)<\/td>\nGeneral training (1)<\/td>\n Group company officer training<\/td>\nGeneral training (2)<\/td>\nIssue-based training (2)<\/td>\nOfficer training<\/td>\n<\/tr>\n
Eligible participants<\/td>\nAll officers and personnel<\/td>\nAll officers and personnel<\/td>\nGroup company officers<\/td>\nAll officers and personnel<\/td>\nAll officers and personnel<\/td>\nDirectors (including Outside Directors) and executive officers<\/td>\n<\/tr>\n
Content<\/td>\n\n
    \n
  • Questions from the compliance textbook (totalof15)<\/li>\n<\/ul>\n<\/td>\n
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    \n
  • Compliance basics<\/li>\n
  • J-SOX<\/li>\n
  • Regulatory matters<\/li>\n
  • Information security<\/li>\n
  • Respect for human rights<\/li>\n
  • Quality\u2011related scandals<\/li>\n
  • Contract examination and review<\/li>\n
  • Harassment education<\/li>\n
  • General Meeting of Shareholders Report<\/li>\n<\/ul>\n<\/td>\n
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    \n
  • Basics of the Companies Act<\/li>\n<\/ul>\n<\/td>\n
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    \n
  • Contracts<\/li>\n
  • Approval rules<\/li>\n
  • Quality\u2011related scandals<\/li>\n
  • Personal information management<\/li>\n
  • Harassment education<\/li>\n
  • Antisocial forces education<\/li>\n
  • Information security<\/li>\n
  • Insider trading<\/li>\n
  • Internal report<\/li>\n<\/ul>\n<\/td>\n
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    \n
  • 22 key compliance questions to understand<\/li>\n<\/ul>\n<\/td>\n
\nExplanation on the following by external lawyers:<\/p>\n
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  • Recent developments in corporate legal affairs<\/li>\n
  • Latest t rends in the Stewardship Code and Corporate Governance Code<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    * For all training, the participation rate was 100%.<\/p>\n<\/div>\n

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    Efforts Aimed at Eliminating Antisocial Forces<\/h5>\n

    The Hodogaya Chemical Group has put in place specific guidelines to ensure that it avoids forming any kind of relationship with antisocial forces. The Group\u2019s approach toward antisocial forces is centralized in and managed by the General Affairs Department.
    In addition, we have established a structure and systems to address the issue of antisocial forces. This includes closely collaborating and exchanging information with such outside professionals as the police and lawyers and to disseminate relevant information to each Group office and company.<\/p>\n<\/div>\n

    Voice<\/div>\n
    \n
    \n<\/p>\n

    Internal Control Department<\/p>\n

    A.A.<\/p>\n<\/div>\n

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    The circle of trust created by psychological safety and compliance<\/div>\n

    In the Internal Control Department, we support the organization in establishing trust by ensuring strict compliance throughout daily operations. What I value most is fostering a psychologically safe workplace. When everyone feels secure in expressing their opinions and sharing mistakes or questions, it helps prevent misconduct and enables the early detection of issues. In such an environment, colleagues naturally support one another, and constructive discussions can lead to the creation of new value.
    In everyday conversations, moments when phrases like \u201cThat\u2019s a great idea\u201d or \u201cThanks for noticing that (issue)\u201d are exchanged make me feel that psychological safety is a driving force within the organization. Moving forward, I want to continue expanding this circle of trust and security and remain a member who contributes to the Company\u2019s future.<\/p>\n<\/div>\n


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