Compliance
Our Compliance Initiative
Policy
Chiyoda Group defines 'compliance' as not only adherence to domestic and international laws, regulations, and company rules, but also as activities to maintain the social validity of the Chiyoda Group operations. This includes respect for human rights, prevention of harassment, anti-corruption measures and information security.
We strive to promote and thoroughly implement compliance measures by meeting the expectations of our stakeholders as a responsible corporate citizen. At the same time, we pursue sincere, equitable and fair corporate management at all times as a member of society. We understand that, in order to create new value and achieve sound and sustainable growth in a constantly changing business environment, compliance based on high ethical standards is essential. It enhances trust of all of our stakeholders and forms the foundations for sustainable growth.
To realize fair and transparent business practices and meet the trust of all stakeholders, we have established the Code of Conduct and Conduct Guidelines, which set out the principles and standards of conduct to be followed. These are communicated thoroughly to all officers and employees across the Group.
Code of ConductConduct GuidelinesCompliance system
To ensure that Chiyoda Group conduct business in accordance with the above policy and principles, Chiyoda has established a compliance framework consisting of a Compliance Officer system, a Compliance Committee, and a Group Company Liaison Meeting.
Compliance Officer System
A Chief Compliance Officer (CCO) is appointed by the board of directors to oversee overall compliance. The CCO is responsible for all issues related to compliance of Chiyoda Group. In cases where a compliance violation or potential violation is identified, the CCO has the authority to conduct investigations and to order improvement or termination of relevant operations.
Under the CCO, Compliance officers (CO) are assigned to each division. They are responsible for promoting and implementing compliance within their respective divisions, including planning and executing compliance measures. The progress and effectiveness of these initiatives are evaluated by the management at the end of each fiscal year, ensuring steady implementation.
At each group company, the company's representative serves as the Group Company Compliance Officer, under the supervision of the governing division's CO.
All officers and employees are required to report or consult with their supervisor if they become aware of, or suspect a compliance violation in the Chiyoda Group. These reports and consultations are escalated through the organization and ultimately submitted to the CCO.
Compliance Committee / Group Company Liaison Meeting
Chiyoda Corporation holds the 'Compliance Committee' and the 'Group Company Liaison Meeting' in principle twice a year to promote and implement compliance measures across the Group.
The 'Compliance Committee' serves as an advisory body to the CCO. It is chaired by the CCO and composed of the Cos as members. This committee is responsible for coordination and communication of compliance initiatives.
The 'Group Company Liaison Meeting' aims to promote compliance efforts across domestic and overseas group companies. It is chaired by the CCO and consists of Group Company Compliance Officers as members. This meeting facilitates communication and discussions regarding compliance measures among the group companies.
Chiyoda Group regularly review our compliance framework to enhance its effectiveness.
Risk Assessment
Chiyoda Group regularly assesses compliance risks associated with Chiyoda Group's business activities and identify key compliance risk areas that require priority attention. The results of these assessments are visualized in a 'Compliance Risk Map', which evaluates risks based on two axes: impact and likelihood.
Efforts to Prevent Compliance Violations
Based on risk assessment results, Chiyoda Group develops and implements appropriate measures for each identified risk. These include establishing internal regulations, introducing prior approval processes, and conducting compliance due diligence for business partners.
Major internal regulations related to compliance include:
- Chiyoda Corporation Group Basic Policy on Prevention of Bribery
- Compliance Management System Regulations
- Rules on Compliance Consultation and Reporting System
- Anti-Bribery Regulations
- Procedure for Providing Economic Benefits to Public Officials
- Compliance Check Procedure for Engaging Agents or Consultants
- Rules on Prohibition of Cartel Activities
- Pre-bidding Procedure for confirming non-existence of Bid-rigging
- Export Control Regulations
- Rules on Prevention of Workplace Harassment
- Insider Trading Prevention Regulations
- Anti-Social Forces Regulations
- Rules on Misconduct in Research Activities
For high-risk areas such as 'anti-bribery,' procedures are established and implemented for:
- Providing gifts, entertainment, or other economic benefits to public officials
- Engaging agents or consultants
For 'prevention of cartels and bid-rigging,' procedures are in place to ensure that no cartel or bid-rigging activities occur in any competitive bidding process.
For our measures regarding export control, please see the page below:
Export ControlWe provide various training programs to improve compliance awareness and knowledge among all officers and employees. These programs include:
- E-learning (with a target completion rate of 100%)
- Risk/topic based training
- Level based training
- Timing based training (e.g. before overseas assignments)
We enhance effectiveness by tracking attendance and confirming understanding. In addition, we distribute a monthly compliance-related newsletter to reinforce awareness alongside training programs.
The records of our education are provided in the ESG Factsheet.
ESG FactsheetChiyoda Group regularly monitors the status and effectiveness of compliance initiatives through audits conducted by internal audit and compliance departments, as well as self-assesments by each division and Group company.
We also conduct an annual anonymous organizational climate survey to identify and improve organizational issues, including compliance awareness, attitudes toward compliance, and trust in internal reporting systems. The results are shared with each organization and used for company-wide and organizational improvements.
Consultation and Reporting System
To identify and address violations such as illegal activities, misconduct, harassment and human rights violations at an early stage, Chiyoda Group has established a group-wide consultation and reporting system.
This system aims to ensure prompt corrective action and prevent recurrence.
Compliance Consultation and Reporting SystemNumber of Serious Compliance Violations
In fiscal year 2025, there were no compliance violations that had a significant impact on the management of the Chiyoda Group.