In addition, we pursue internal awareness programs and initiatives led by the Compliance Committee, including posting the PARCO Employee Handbook on the company intranet.
In order to reduce legal violations and reduce corporate risk, we have introduced an internal audit system and a whistle-blower system, and have built a system to manage the appropriateness of related party transactions.
In addition, we have formulated a Code of Conduct to which all employees are expected to adhere.
PARCO conducts compliance training on topics such as the Personal Information Protection Act and on the risks associated with social media and other online activity.
All employees are required to participate in awareness training designed to prevent harassment.
The Compliance Committee holds regular meetings twice per year and ad-hoc meetings as needed.
Basic Principles of Compliance
In the conduct of our business, all PARCO executives and employees conduct fair and highly-transparent business activities in compliance with the various laws in Japan and overseas, social rules, social norms, and various internal company regulations.
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Internal auditing system
To reinforce the internal auditing capabilities of our group, we have established a Internal Audit Office which audits the legality, economic rationality, and risk exposure of the group as a whole, based on audit plans and under the direction of a Director assigned solely to this task. We also strive to improve audit efficiency through the timely exchange of auditing information with the Audit Committee and auditors at group subsidiaries.
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Whistle-blower system
We have established a whistle-blower system in order to quickly understand possible risks within each group company. The system enables us to accept reports of legal and regulatory violations, prevent corruption, and detect and correct fraud. We have also established an appropriate processing system for reporting violations through a third-party organization.
One feature is that persons providing information, or persons cooperating with a subsequent investigation, are not to be dismissed or suffer other negative consequences as a result. -
Related Party Transactions Management System
In order to ensure that transactions entered into with related parties are appropriate, PARCO conducts a survey of all officers of PARCO and its subsidiaries regarding whether they have engaged in related party transactions, and on the basis of this submits to the Board of Directors a report on transactions between PARCO and its officers and major shareholders. Any transaction between PARCO and a Director or Executive Officer that gives rise to a conflict of interest is subject to approval by the Board of Directors based on the relevant laws and PARCO’s regulations for Directors.
Code of Conduct
1. Each and every executive and employee is to respect basic human rights and is not to discriminate against or harass other people.
2. Each and every executive and employee is to behave in a manner that takes into consideration other people and the environment, and that is in compliance with environmental treaties and laws.
3. Each and every executive and employee is to properly handle and manage intellectual property and business-confidential information gathered in the course of business activities.
4. Each and every executive and employee is to refrain from conducting illegal trading in shares (insider trading).
5. Each and every executive and employee is to distinguish between public and private interests and is not to conduct acts that are in conflict with public interests.
6. Each and every executive and employee is to accept gifts and entertainment only within the scope that is considered appropriate in general societal terms and in compliance with laws and regulations.
7. Each and every executive and employee is to take a resolute attitude towards and refuse to respond to the demands of anti-social influences that would threaten the order and safety of citizens and society.
8. Each and every executive and employee is to promptly report in accordance with the whistleblowing regulations all acts in conflict with this Code, whether they discovered the act or carelessly conducted the act themselves.
J. Front Retailing Group Principles of Action
As a company of J. Front Retailing Group, PARCO complys with JFR Principles of Action which JFR formulated. By doing so, we, along with our business partners, aim to contribute to realizing a sustainable society through the sustainable enhancement of corporate value.
JFR has formulated the JFR Principles of Action and the Principles of Action for Suppliers.
These two principles indicates our stance on corporate behavior leading to creation of a sustainable society, which will be realized along with suppliers.
The JFR Principles of Action defines basic actions to be understood and followed on a daily basis by individual officers and employees of J. Front Retailing Group.
JFR corporate site link ：JFR Principles of Action and Principles of Action for Suppliers
JFR Principles of Action
Introduction
Since our inception, we have conducted business activities trusted by customers and other stakeholders based on the corporate credos “Service before profit” and “Abjure all evil and practice all good.” We also developed our vision “Create and Bring to Life ‘New Happiness’” and the “JFR Way” as a set of our values to realize the vision.
We are expected to create additional value through fair and free competition and realize sustainable environment and society to actually create and bring to life new happiness.
These policies set forth basic actions that all officers and employees in the J. Front Retailing Group (Hereinafter J. Front Retailing will be referred to as the “Company” and J. Front Retailing Group as the “Group.”) should understand and follow on a daily basis in terms of acknowledging their roles and responsibilities and acting with a high sense of ethics to fulfill their social responsibilities toward the realization of the corporate credos and vision.
We hereby promise all stakeholders that we will comply with these policies.
1. “JFR Conduct Policy”
(1) Fair business activities
We will comply with laws and regulations and social norms and conduct fair and transparent business activities. We will also comply with rules on antimonopoly, fair competition and fair transactions and not engage in acts that deviate from these rules.
(i) Legal compliance
We will comply with laws and regulations and relevant rules that apply in the countries and regions where we engage in business activities. And we will strive to make highly transparent and objective and sound corporate governance function in management.
(ii) Prohibition of transactions with antisocial forces
We will have no relationship with antisocial forces, organizations, groups or individuals that threaten social order and the safety of civilian life. And we will adopt a resolute stance against their pressure and eliminate them.
(iii) Prohibition of corruption, bribery and the like
We will maintain a healthy and normal relationship with government agencies and civil servants and not give bribes, illegal political contributions, etc.
(iv) Prohibition of giving and accepting of improper benefits
We will not give to or accept from business partners including those in the Group improper benefits that lack or could undermine fairness.
(v) Prohibition of anticompetitive acts
We will not engage in private monopoly, unfair restraint of trade such as a cartel, and other acts that interfere with free and fair competition.
(vi) Disclosure of information
In case we become aware of events that cause doubt about the quality, safety, effectiveness, etc. of the products and services we offer, we will actively disclose information regardless of whether or not such disclosure is required by laws and regulations.
(vii) Prevention of leakage of personal information
We will appropriately manage and protect personal information of customers, third parties and our employees.
(viii) Protection of intellectual properties
We will respect the rights of suppliers that have intellectual property rights in procurement transactions. And we will not engage in any transaction that violates third party’s rights. We will actively disclose information on the quality, safety, effectiveness, etc. of products and services.
(ix) Promotion of responsible procurement
With respect to ESG issues in our supply chain, we will work to resolve them and make improvements with suppliers and address these issues in terms of realizing a sustainable society and enhancing corporate value.
(2) Consideration for human rights and the work environment
We will respect the human rights of everyone in the entire supply chain and not be involved in human rights violations. And we will give consideration to the work environment and realize a safe and pleasant work environment.
(i) Prohibition of discrimination
We will not discriminate on the basis of race, ethnicity, nationality, social status and family origin, gender, disability, health condition, thought and creed, sexual orientation and gender identity, job, employment status, etc.
(ii) Prohibition of harassment
We will respect employees’ human rights and not be involved in any abuse, physical punishment, psychological/physical/sexual harassment and intimidation.
(iii) Provision of safe work environment
We will design and build facilities and ensure the safety of facilities in consideration of the health and safety of employees. And we will monitor the situations where employees contact with biological and chemical substances that are harmful to humans, noise, bad odor, etc. in workplaces and take appropriate measures.
(iv) Respect for freedom of association and collective bargaining
We will respect employees’ rights to form a labor union, to join or not to join it, and to engage in collective bargaining with head offices, business places and associated companies in Japan and abroad.
(v) Prohibition of forced labor
We will not use any form of slave or forced labor such as labor by means of physical or psychological restraint and not engage in human trafficking.
(vi) Prohibition of child labor
We will not hire children who do not reach the minimum labor age and not allow child labor that may impair children’s development.
(vii) Responsibility for local communities
We will strive to contribute to the development of the local communities affected by our businesses.
(viii) Disaster prevention measures
We will prepare measures for possible emergencies including disasters and accidents, keep employees informed about them, and implement disaster prevention measures.
(3) Consideration for the environment
We will comply with all environmental laws and regulations that apply in the countries and regions where we engage in business activities, maintain a proactive stance on environmental conservation through business activities, and strive to contribute to the development of society by reducing greenhouse gas emissions, saving energy and other resources, reducing waste and wastewater, recycling, preventing pollution, conserving biodiversity, and other means.
(i) Actions against global warming
We will work to reduce greenhouse gasses to counter global warming.
(ii) Sustainable use of resources
We will work to save energy and other resources, recycle and reduce waste.
We will also strive to reuse water resources and appropriately manage wastewater.
(iii) Prevention of pollution
We will work to prevent pollution and health damage.
(iv) Biodiversity
We will comply with international conventions and relevant laws and regulations and work to ensure biodiversity-conscious procurement to promote conservation of biodiversity and sustainable use.
(v) Elimination of chemicals
We will not handle products using chemicals and raw materials prohibited by international conventions and relevant laws and regulations.
(4) Consideration for the safety and security of products and services
We will provide products and services that comply with all laws and regulations that apply in the countries and regions where we engage in business activities.
And we will strive to prevent accidents related to products and services from happening.
(i) We will improve the quality of products and services and provide products and services that meet both the safety standards set in each country and by us.
(ii) In case there is a fear that an accident that could affect the safety of customers may happen, we will take appropriate measures to prevent the accident from happening or expanding.
(iii) We will respond to inquiries from customers in good faith and reflect them in improvement of products and services.
(5) Responsible marketing
We will thoroughly carry out responsible marketing activities in order to provide safe and secure products and services. For the products and services we handle, including alcohol, processed foods, and beverages, we will fulfill our responsibilities to customers by taking into account the health effects of misuse and excessive consumption, ensuring the safety of products and services, and providing accurate and easy-to-understand information to customers.
Also for allergy-related labeling, we will fulfill our responsibilities to customers by providing them with accurate product information.
(i) We will have in place an inspection system to ensure the safety of products and services and always pay attention to effectiveness and safety in the process of purchase, sales and consumption of products and services.
(ii) We will have in place an inspection system to ensure the appropriateness of labeling and check when purchasing and selling products.
(iii) We will comply with laws and regulations when providing information to customers and publicize and advertise using appropriate expressions, content and media.
(6) Contribution to local communities
We, as a corporate citizen that coexists with society, will respect local culture and actively engage together with local stakeholders in creative activities that contribute to the development of local communities.
(i) We will strive to engage in activities to realize together economic and cultural development of local communities in order to contribute to the development of local communities.
(ii) We will pursue cooperation with a wide range of stakeholders including local communities, governments and educational institutions.
(7) Responsibility for shareholders, investors and other stakeholders
(i) Disclosure of management information
We will strive to ensure sound management, appropriately return profits to shareholder and maximize shareholder value.
We will emphasize dialogue with a diversity of stakeholders including shareholders and investors. And we will disclose information timely and appropriately through dialogue and respond to them fairly and honestly to meet their trust.
(ii) Prohibition of insider trading
We will not use inside information on the Company, associated companies or suppliers obtained in the course of business to seek personal interests.
(iii) Proper accounting procedures
We will follow proper accounting procedures in accordance with laws and regulations and internal rules to ensure the reliability and appropriateness of financial reporting.
2. “Procurement Policy”
While fulfilling social responsibilities, the Group will procure products and services, increase business competitiveness and enhance corporate value to realize the optimal procurement for business.
The Group will work to realize the optimization of the entire supply chain by providing suppliers with an understanding of this policy and listening to suppliers to communicate with each other.
The Group will strive to provide suppliers with an understanding of this policy.
We expect suppliers to understand and comply with the matters set forth in this policy.
(1) Quality first
Returning to our basic focus on providing safe and excellent products and services that satisfy customers, we will realize “optimal cost” and “high quality” always from “customer’s perspective.”
(2) Fair trade
We will provide all like-minded suppliers with opportunities for procurement transactions and actively consider procuring from new suppliers. We will judge in a comprehensive manner in terms of quality, cost, delivery time, services, ESG initiatives, etc. to select suppliers fairly.
(3) Thorough compliance
We will strive to trade fairly in compliance with laws and regulations and social norms and by giving full attention to corruption prevention and occupational health and safety.
(4) Prohibition of transactions with antisocial forces
We will have no relationship with antisocial forces, organizations, groups or individuals that threaten social order and the safety of civilian life. And we will adopt a resolute stance against their pressure and eliminate them.
(5) Compliance with the Antimonopoly Act, etc.
We will comply with laws and regulations including the Antimonopoly Act that ensure fair competition and relevant internal guidelines. And we will not engage in acts that restrict competition or will not be involved in bid rigging.
(6) Consideration for human rights
We will protect employees’ health, safety, human rights and other rights protected by law and contribute to improving their lives and working conditions.
(7) Consideration for the environment
We will recognize the importance of environmental conservation and maintain a proactive stance on environmental conservation in our procurement activities. We will comply with international conventions and environmental laws and regulations and work to manage the entire supply chain to create a recycling-oriented and sustainable society.
In particular, in order to promote conservation of biodiversity and sustainable use, we will comply with international conventions and relevant laws and regulations and work to ensure biodiversity-conscious procurement. And we will not handle products using chemicals and raw materials prohibited by international conventions and relevant laws and regulations.
(8) Appropriate management of information
We will put in place appropriate information management system to prevent confidential information and personal information obtained in the course of procurement transactions from being leaked.
(9) Protection of intellectual properties
We will respect the rights of suppliers that have intellectual property rights in procurement transactions. And we will not engage in any transaction that violates third party’s rights. We will actively disclose necessary and sufficient information on the quality, safety, effectiveness, etc. of products and services.
(10) Mutual trust and prosperity with suppliers
We will build a relationship of trust with suppliers based on high transparency and a sense of ethics through procurement transactions and aim to mutually evolve and develop as business partners.
3. “Human Rights Policy”
Since its inception, the Group has conducted business activities trusted by stakeholders based on the corporate credos “Service before profit” and “Abjure all evil and practice all good.”
Respect for human rights underlies all our business activities. Companies are expected to have a better understanding of various human rights issues related to all activities in each country or business and take appropriate actions. We at the Group will act based on this policy.
This policy applies to all officers and employees.
The Executive Officer and Senior Executive General Manager of Management Strategy Unit who assumes the role of promoting ESG at the Group is responsible for this policy and its operation.
The Group will strive to provide suppliers with an understanding of this policy. We expect suppliers to understand and comply with the matters set forth in this policy.
(1) Basic ideas on human rights
We understand that our business affects human rights directly or indirectly in each process of value chain including the procurement and consumption and use of products.
And we support and work on the “International Bill of Human Rights,” the “Guiding Principles on Business and Human Rights” and the “ILO Declaration on Fundamental Principles and Rights at Work” adopted by the International Labour Organization (ILO).
We also support and respect the “Ten Principles of the United Nations Global Compact” as a signatory to the United Nations Global Compact.
We will comply with laws and regulations in Japan as well as in each country or region in which we operate and respect as much as possible and actively promote international human rights standards.
(2) Stakeholders and human rights
We commit to preventing human rights violations by prohibiting any form of discrimination on the basis of race, ethnicity, nationality, social status and family origin, gender, disability, health condition, thought and creed, sexual orientation and gender identity, job, employment status, etc., prohibiting harassment, providing a safe work environment, paying higher than minimum wage, ensuring responsible labor practices including appropriate management of working hours, respecting the freedom of association and collective bargaining, and ensuring equal pay for equal work.
We will not tolerate any form of slave, forced or child labor including human trafficking.
(3) Implementation of human rights due diligence
We will identify negative impacts on human rights related to the Group’s business and work to prevent and reduce these impacts in accordance with the “Guiding Principles on Business and Human Rights.”
We will not violate human rights themselves as a matter of course, and furthermore, we will build a responsible supply chain by taking appropriate corrective actions when finding negative impacts on human rights in our business activities.
We will strive to build a human rights due diligence system, identify the Group’s negative impacts on social human rights, and adopt appropriate and effective remedies.
We will regularly disclose the progress of our efforts to identify and address negative impacts on human rights.
(4) Development of corporate culture that respects human rights
We will provide all officers and employees with education and awareness-raising activities necessary to implement this policy in order to establish a corporate culture that respects human rights.
(5) Dialogue with stakeholders
We will continue to engage in dialogue with stakeholders on human rights issues related to the Group to evolve our efforts to respect human rights.
4. “Anti-Corruption Policy”
Recognizing corruption and bribery as a serious risk factor that severely damages the trust of companies, the Group will prevent the actions that may constitute corruption or bribery and perform fair and highly transparent corporate activities.
The Group will strive to provide suppliers with an understanding of this policy. We expect suppliers to understand and comply with the matters set forth in this policy.
(1) We will not engage in or be involved in any form of corruption including embezzlement and bid rigging.
(2) With a full understanding of laws and regulations, we will not offer to civil servants and the like entertainment or gifts that may cause society’s doubt or distrust or money or other benefits to gain unfair advantage.
(3) We will not offer to or accept from suppliers, etc. entertainment or gifts beyond business practices and social common sense.
(4) We will not use our statuses or positions in the companies to seek personal interests from suppliers, etc.
(5) We will provide education and awareness-raising activities for officers and employees to have an anti-corruption corporate culture take root.
5. “Occupational Health and Safety Policy”
Based on the idea that occupational health and safety is the most important foundation of business activities, the Group will work to improve employees’ occupational health and safety levels with top priority on ensuring health and safety.
The Group will strive to provide suppliers with an understanding of this policy. We expect suppliers to understand and comply with the matters set forth in this policy.
(1) Creation of workplaces with priority on health and safety
We will give top priority to employees’ occupational health and safety in business activities.
(2) Compliance with laws and regulation on health and safety
We will comply with laws and regulations on health and safety and rules, etc. on health and safety set by the companies and business places in the Group.
(3) Creation of a safe and low-risk work environment
We will create a safe and low-risk work environment to prevent occupational accidents.
(4) Maintenance and enhancement of employees’ health
We will strive to improve our health management system and implement all-hands health and safety activities to prevent health problems from overwork and mental distress.
(5) Education and awareness-raising activities
We will provide education and awareness-raising activities for all officers and employees to have a health and safety corporate culture take root.
*This policy may be amended according to changes in social conditions and new information.
*Principles of Action for Suppliers：
https://www.j-front-retailing.com/english/sustainability/supply-chain/supply-chain02.html