When approaching compliance, the Group insists that employees not only uphold all laws, regulations, and company internal rules, but also abide by the rules and standards of behavior of the communities in which they operate, and as members of the Group conduct themselves with proper social norms and common sense.
The Company has created the“ DAIDO METAL GROUP Performance Standards” to ensure compliance is at the heart of the execution of all company business activities and strives to keep all employees informed, and the Company has established the“ Corporate Ethics Committee”, chaired by the Head of the Compliance Division, as a place to discuss various measures relating to compliance. The Company has also created a“ Whistleblowing, Reporting and Consultation Scheme” as a system for discussing and reporting compliance-related matters, and is also putting in place mechanisms for the early identification of matters posing concern over infringement of compliance standards and for the protection of the person making the report.
The Corporate Ethics Committee provides the Board of Directors with regular reports on the status of compliance activities within the Group, with concerted efforts from the Group to achieve compliance management.

Corporate Ethics Committee Members (as of July 2023)

▮Corporate Ethics Committee

▮System Diagram

 Compliance Training

The Company conducted a check on the level of understanding of the Code of Conduct for 3,026 employees (including temporary staff employed by a staffing agency) of the Company and its affiliated companies in Japan in November 2022, and implemented a web-based compliance
test for 209 managers and supervisors in December. In addition, in response to the revision of the
Whistleblower Protection Act in June 2022, a study session on the whistleblower/report consultation system was held for 209 supervisors from June to July. We will continue to work to further improve compliance awareness and prevent corporate scandals by instilling our Group’s standards of conduct.

Publication of“ Compliance Times”

In FY2020 we used the opportunity provided by the establishment of the Compliance Department within the Company to begin monthly distribution of a“ Compliance Times” publication with the aim of fostering awareness of compliance among employees. This has established itself as a useful tool for communicating general information, covering not only the field of compliance, but also a wide range of other themes, including risk management, internal control, and the SDGs.

Initiatives for establishing and strengthening a global compliance system

During the three-year Midterm Business Plan running from FY2020 to FY2022, the Company is establishing and strengthening initiatives for a global compliance system. In the first year, FY2020, a questionnaire survey was conducted to get a better understanding of the current status of overseas locations, and a policy on establishing and strengthening a system was drafted. The Company also took steps to establish and strengthen the foundation for compliance, such as by clarifying those with responsibility for compliance, translating the Code of Conduct into the languages of the various countries and regions in which the Group operates and confirming measures for instilling the Code among employees, and thoroughly codifying the rules for the whistleblowing system.

▮No. of whistleblowing/reporting and consultation cases

※Excludes health consulations with industrial physician.