Compliance

Compliance Promotion Activities

Compliance performance

Major Compliance Violations in FY2019 0
  • * Violations disclosed as having a serious impact on group management
出光興産, DFF Inc.

Raising Employee Awareness

“Compliance Room”

We have opened the “Compliance Room,” a new webpage accessible from the intranet information portal. This page features compliance violation case studies as well as four-frame comics and blog posts, with the aim of updating employees on the latest compliance concerns inside and outside of Idemitsu, disseminating other relevant insights to a broad range of Group business units, and raising employees’ awareness of compliance.

Compliance Education

Every year, we provide employees with web-based compliance learning programs. The latest round of these programs was implemented in November 2019 to aid Group employees in their acquisition of compliance literacy and identification of compliance issues specific to their workplaces. A total of approximately 15,000 individuals completed the programs. In addition, we implement compliance training specially designed for new hires and individuals appointed to managerial positions.

Compliance Book

At the end of January 2020, we issued our Compliance Book, with the aim of offering specific compliance standards in conformity with the Compliance Code of Conduct. Simultaneously, we prepared narrated video materials designed to help viewers enhance their understanding of the Compliance Book. These materials feature slideshows elaborating on specific case studies discussed in the publication. In addition to the Japanese version, we issued English and Chinese editions of the Compliance Book in an effort to ensure that all Group employees at home and abroad are properly educated on compliance topics.

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出光興産, DFF Inc.

Bribery and Corruption Prevention

Whether it takes place in Japan or overseas, our Compliance Code of Conduct stipulates that all forms of corruption must be prevented. Furthermore, having established basic rules and systems to be observed in the prevention of bribery, we have upgraded them into the “Rules for the Prevention of Bribery” with the aim of preventing violations of the OECD convention and the Foreign Corrupt Practices Act (FCPA) as well as laws and regulations, enforced in countries where we operate, that prohibit unfair competition and bribery. We are currently striving to ensure that these rules are strictly observed. Moreover, we regard anticorruption as a particularly important compliance issue for those working at our overseas sites, and are raising their awareness about the importance of specific preventive measures. We have included articles on such topics as the prohibition of bribery, such as the bribery of public officials and limitations on excessive gifts and entertainment, in our Compliance Book to raise employee awareness.

出光興産, DFF Inc.

Prevention of Anti-Competitive Practices

We have established the “Rules for Compliance with the Antimonopoly Law,” which stipulate basic matters that must be observed to ensure compliance with the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade as well as competition laws enforced in each country in which we operate in addition to other relevant regulations. These rules also define necessary compliance promotion structures. Specifically, the Representative Director and President is responsible for providing overall supervision over activities aimed at ensuring the proper observance of these rules and preventing employees’ involvement in prohibited practices. The division heads of the Company and presidents of its subsidiaries are tasked with putting these rules into practice. To this end, they strive to ensure that appropriate self-management measures are implemented in a way that gives due consideration to risks associated with the characteristics of their businesses and organizational structures as well as country-specific circumstances and local antimonopoly laws.

出光興産, DFF Inc.

Tax Compliance Initiatives

Due to the globalization of our business, we are more likely to confront a more diverse range of increasingly complex tax-related issues in the course of operations. Accordingly, we recognize that coordinated handling of tax compliance is a matter of increasing importance. With this in mind, we established the “Group Tax Regulations,” “Group Tax Practices Guide” and other relevant rules aimed at stipulating the Group’s policies on tax compliance and the detailed treatment of tax-related issues. We are thus striving to fulfill our corporate social responsibility by paying taxes in a proper manner and complying with all applicable tax laws enforced in countries where we operate in line with the Group Basic Tax Policy.

Group Basic Tax Policy
  1. Compliance with Tax Compliance
    The Group employees must adhere with a basic policy of properly filing taxes, making payments, and otherwise handling transactions involving the Group in conformity with tax laws and regulations, and are prohibited from engaging in tax evasion or other illegal actions.
  2. Proper Management of Tax Expenses
    The Group employees must give due consideration to various tax systems to prevent the emergence of tax-related risks. At the same time, they are expected to fully utilize legally permitted measures to optimize the Group’s tax-related operations.
Framework for Promoting Tax-Related Operations

The Accounting Department serves as the primary business unit responsible for tax-related operations. In accordance with the “Group Tax Regulations,” this department is charged with furnishing information and advice to each Idemitsu department and Group company handling transactions. The Accounting Department is also tasked with providing relevant in-house education and responding to tax inspections in addition to planning and implementing necessary countermeasures aimed at ensuring tax compliance and optimizing the management of tax expenses. Moreover, all Idemitsu Group employees are obliged to comply with the aforementioned regulations and handle tax-related operations in an appropriate manner. To this end, whenever requested by the Accounting Department, Group employees report on said operations and submit relevant documents while asking it to provide prior consultation where necessary.

Relationship with Tax Authorities

We cooperate with tax authorities in a straight-forward, appropriate manner and prohibit our employees from making any inappropriate responses involving falsification or concealment. We endeavor to explain our group’s position and standpoint to the best of our ability in order to ensure the comprehension of tax authorities when they inquire about or point out issues pertaining to our handling of tax-related operations. Moreover, we utilize the advance inquiry procedures offered by tax authorities to ensure the appropriate payment of taxes. By voluntarily disclosing information to tax authorities, we thus strive to prevent the occurrence of and minimize the risk of tax-related incidents.

Response to Tax-Related Compliance Violations

Should a tax-related compliance violation occur, we will take a stringent approach to its correction. We will also ensure that measures to prevent recurrences are implemented in accordance with in-house rules and regulations stipulated by the Idemitsu Group.。

出光興産, DFF Inc.