Governance Compliance

Organizational Structure

The Yamato Group has established a Compliance and Risk Committee-chaired by the executive officer in charge of compliance and risk management-to spread awareness of compliance throughout the Group, prevent situations that have a significant impact on corporate activities, and supervise and manage strategy measures to resolve issues promptly and smoothly in the event of an emergency. The committee discusses issues and countermeasures related to the promotion of risk management throughout the Group, and exercises thorough management with respect to each Group company through the Executive Committee. Content discussed by the committee is reported quarterly to the Board of Directors. In the event of an emergency where a serious risk arises, the committee ascertains the situation swiftly and accurately, and shares information promptly with directors, auditors, and other relevant parties.

Corporate Governance

The Yamato Group conducts its business activities in accordance with laws and social norms and engages in compliance management, in line with the Yamato Group Corporate Philosophy. The Group regards maximizing corporate value by making effective use of its management resources as one of the most important management issues, and implements measures to strengthen its management structure as a corporate governance initiative.

For details, please refer to the Corporate Governance section of the corporate information page.

Internal Control

The Yamato Group has constructed and operates an internal control system to instill a sound corporate culture throughout the Group, prevent fraudulence and mistakes, and conduct business efficiently and effectively. We have established a Basic Internal Control System Policy, in line with which we are working to enhance our internal control system to meet the four objectives of operational effectiveness and efficiency, reliability of financial reporting, compliance with laws and regulations relating to business activities, and preservation of assets.

The Internal Control Department works together with other departments responsible for major Group companies, to ensure effective operation throughout the Group. The Department is working to enhance and improve the internal control system as necessary, and the state of development and operation of the system is reported to and checked quarterly by the Group's Board of Directors and Audit and Supervisory Board.
Major Yamato Group companies have departments that are responsible for internal auditing, which conduct internal audits to ensure that business operations are conducted in accordance with the rules. Companies that do not have a department in charge of internal auditing are audited by the Yamato Holdings Audit Department. Yamato Holdings Audit Department reports the results of its audits to the president and Audit and Supervisory Board members, and to the Board of Directors on a quarterly basis for checking.

Compliance and Risk management

As a social infrastructure company, the Yamato Group believes that it is very important to continue to earn the trust of customers and society. In order to do so, all business activities and employee actions must be conducted not only in compliance with laws and regulations-which are the rules of society-but also with high ethical standards.
The Yamato Group is committed to management with compliance as the top priority, based on the Declaration of Compliance in the name of its president. Based on the Group's Core Values as an unchanging set of values we have established the Group Corporate Philosophy, which consists of a Management Philosophy, Corporate Stance and Employee Code of Conduct. These summarize the way in which the Yamato Group contributes to society and what kind of attitude it as a company-and also its individual employees-should take in order to realize it. In order to foster a corporate culture with high ethical values, the Group conducts ethics training focused primarily on instilling its Corporate Philosophy, through initial orientation training for employees at the time of joining the company and subsequent regular training sessions. We also distribute Group Corporate Philosophy booklets for all employees to carry with them, as a guide to check whether their judgment is correct, and as a solid rock of support when they are lost and do not know the answer. We also display posters of the Compliance Declaration at all business locations of each Group company, to raise employee awareness and explain cases of noncompliance in an easily understandable manner, with illustrations to draw attention.

In addition to fostering ethical values, the Group conducts risk management-in accordance with the Basic Risk Management Regulations-against economic losses, interruptions and suspensions of business, loss of confidence and brand image, and various other risks that impede the achievement of the Group's Corporate Philosophy, management plans, and management strategies. By doing so, we aim to ensure business continuity and achieve stable development.

Internal Reporting (Whistleblowing) System

The Yamato Group has established an internal reporting (whistleblowing) system to detect violations of laws and regulations and internal regulations at an early stage, and take appropriate measures. The reporting system accepts reports on all aspects of corruption including bribery, compliance, including human rights violations such as bullying and harassment, and all behavior that violates internal rules and the Group's Corporate Philosophy. We have established Opinions Box for suggestions to the Group's president, Compliance Hotline administered by the Compliance and Risk Committee, and Corporate Fraud Report Desk managed by outside lawyers, accepting reports by e-mail, phone or written correspondence. As of February 2019, we have also established dedicated contact points for group companies, as a familiar consultation desk. Posters showing the president's face are posted at all business locations, making these consultation desks known to employees. In accordance with our Internal Reporting Regulations, we strictly protect the privacy of whistleblowers, maintain a system in which they are protected and not subjected to disadvantageous treatment as a result of reporting, and create an environment that makes it easy for employees to report anonymously if they wish to do so.
In the event of a report, we have established a system to promptly confirm facts and take necessary measures to rectify problems and prevent recurrences. Specifically, we have established specific group-wide response procedures, processing methods, and risk judgment criteria for internal reports, and apply a consistent operational flow to all reports to prevent any oversight of serious risks. We have improved the level of risk awareness by unifying standards and clarifying the persons responsible for making decisions at the time of receipt and reporting.
We have also formulated internal rules for conducting meetings to verify reports, and are preventing recurrences by conducting appropriate investigations and verifying responses. In addition, by centrally managing reporting information and responses by the Group, we grasp overall trends, seek to apply the same effective response measures across the board, and periodically report to the Board of Directors, leading to improvements throughout the entire Group.

Internal Reporting (Whistleblowing) System

In FY2020, YHD contact desks received 827 reports, which were then handled appropriately based on investigation and confirmation of facts. *2 In FY2020, a temporary COVID-19 Consultation Desk was established to respond to inquiries and consultations regarding matters such as requirements relating to workplace hygiene and compensation for temporary closures, etc., in light of the spread of the COVID-19 pandemic. Activities such as revising compliance declaration posters and holding explanatory briefings for HR personnel in light of the enactment of the so-called Power Harassment Prevention Act has led to greater awareness and recognition of the internal reporting (whistleblowing) system.

TOPICS

Yamato Group Internal Reporting System Acquires Whistleblowing Compliance Management System Certification (WCMS Certification)

In recent years, whistleblowing systems have been indispensable for implementing compliance management and ensuring sound business performance through the provision of safe and secure products and services, and have become an important element in internal control and corporate governance, which are the basic systems that underpin corporate management.
Whistleblowing Compliance Management System (WCMS*) is a certification based on the Guidelines for Private Enterprises Regarding the Development and Operation of Internal Reporting Systems Based on the Whistleblower Protection Act (Consumer Affairs Agency, December 9, 2016). The certification aims to foster a socio-economic environment in which business operators who appropriately establish and operate whistleblowing systems are regarded highly by society, leading to confidence of consumers and business partners, improvement of corporate brands, recognition in public procurement and securing excellent human resources; and to improve the quality of whistleblowing systems by promoting such efforts, thereby ensuring the safety and security of people's lives.
The Yamato Group internal reporting system acquired WCMS certification on July 31, 2020.
*WCMS: Whistleblowing Compliance Management System

Whistleblowing Compliance Management System Certification

[Main Activities of the Yamato Group]

  • Strengthen awareness of whistleblowing contact points for employees
    (Renewal of posters for business sites, publication of reporting desk information on employee-use websites, etc.)
  • Holding various training on whistleblowing (training for responders, training for officers, etc.)
  • Conducting a questionnaire survey of employees on the whistleblowing system

Preventing Corruption

As a supporter of the UN Global Compact, the Yamato Group strives to prohibit and prevent corruption. Our Group Corporate Philosophy and Employee Code of Conduct advocate adherence to laws and fair practices and state clearly that "When we entertain or give gifts, we will do so within the scope of what is socially appropriate. We will not engage in any bribery that violates the laws, regulations, or rules of any country or region, nor will we engage in any act that could be suspected of being bribery." In order for employees to confirm risks related to corruption and incorporate measures against them into their individual actions, we have prepared and distributed a carry-sized Group Corporate Philosophy booklet to all employees.
The Compliance and Risk Committee reports on compliance risks-including corruption-to the Board of Directors on a quarterly basis.
In FY2020, there were zero disciplinary actions and dismissals due to anti-corruption-related noncompliance violations. In addition, the total amount of fines related to corruption last year was 0 yen, and the number of penalties and approvals other than fines was also 0.

Business Continuity Planning (BCP)

As a corporate group responsible for TA-Q-BIN, a part of social infrastructure, we have formulated a Business Continuity Plan (BCP) to ensure that stable provision of services can be continued even under unforeseen circumstances. Based on our experiences during the 2011 Tohoku Earthquake, we are working to enhance our group-wide crisis management system in anticipation of various emergencies.
The Yamato Group's Basic BCP Policy stipulates the three key pillars of giving top priority to human life, aiming for the early restoration of the businesses of each Group company, and meeting the expectations of local communities as a part of social infrastructure. Based on our basic policy, we have established various group-wide standards and prepared manuals according to the business characteristics of each Group company.
Each Group company has established a BCP department and supervisor, as well as the BCP department within Yamato Holdings that oversees BCP for the whole Group. In the event of an emergency, based on the standards, we establish a response headquarters within Yamato Holdings (headed by the president) and coordinate with the departments in charge at each Group company.
As of 2020, we have also introduced a safety / disaster status confirmation system, and regularly conduct training on initial safety checks and reporting on damage status in the event of a disaster.
We distribute disaster-response pocket cards to all of our employees-describing actions that they should take in the event of a disaster-and conduct regular disaster response training. We have also introduced a system that allows us to confirm the safety of employees in the event of a disaster.
In addition to toughening our response to natural disasters such as earthquakes, torrential rain and flooding, which are expected to cause large-scale damage, we will also continue to consider a wide range of new measures against infectious diseases and other such disasters.
The Group has established a COVID-19 Countermeasure Liaison Office as an emergency response headquarters to help combat the COVID-19 pandemic, which has been raging since January 2020. As essential workers, we recognize that our services are an essential and indispensable part of life in society. In view of this, we have developed company-wide guidelines to ensure business continuity while at the same time protecting the safety of our employees and customers, and are working to prevent the spread of infection.

Initiatives to Prevent the Spread of COVID-19

Initiatives to Prevent the Spread of COVID-19
At each workplace, we thoroughly implement basic measures to prevent infection, such as wearing masks, washing hands, and disinfecting hands and other surfaces.