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.
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.
Internal auditing system
To reinforce the internal auditing capabilities of our group, we have established a Group Auditor 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.
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.