- Compliance Promotion Structure
- Compliance Promotion Activities
- Whistle-Blowing System
- Compliance Survey
- Barring Relations with Anti-Social Forces
- Preventing Bribery and Corruption
- Compliance with the Internal Control Reporting System
The J-POWER Group, in accordance with its Corporate Philosophy, has established the Corporate Conduct Rules as the core of its compliance activities, outlining basic rules for behavior in line with the spirit of compliance and business ethics to be observed in the course of business operations. In addition, the Group has established its Compliance Action Guidelines as criteria for determining specific actions by individual employees, including members of management, when conducting business activities.
Directors adhere to the Corporate Philosophy, Corporate Conduct Rules, and Compliance Action Guidelines, set an example for honest and fair conduct based on a steadfast spirit of compliance and business ethics, and instill these values in employees.
In addition, the Board of Directors regularly receives reports on the status of business execution in order to keep up to date on risks, including ESG-related risks. The Company incorporates mutual checks and balances in the internal decision-making process, undertakes reviews in various meetings and committees, and always maintains risk management frameworks in accordance with Company regulations. This structure ensures measures are implemented to recognize and avoid risks in the conduct of business activities and minimizes losses when risks actualize.
Compliance Promotion Structure
The Company’s compliance is overseen by the Chairman. An officer in charge of compliance implements compliance promotion programs and assists the Chairman and President. The Compliance Action Committee, chaired by the Chairman, has been established to discuss company-wide compliance promotion measures, evaluate their implementation status, and address issues related to compliance violations. With the participation of group companies, the committee implements measures for the entire J-POWER Group. Two task forces have also been established to quickly and accurately promote operations pertaining to compliance promotion, one for company-wide compliance promotion and the other for autonomous safety activities based on the Company’s safety regulations. These task forces, which are led by Executive Officers who have relevant expertise, confirm the implementation status of compliance promotion activities.
At major offices, power plants, and Group companies throughout Japan, individual compliance committees have been established to implement compliance activities suited to the characteristics of their respective business units.
The J-POWER Group’s Compliance Promotion System
Compliance Promotion Activities
The Compliance Action Committee utilizes a PDCA (plan-docheck- act) method for compliance promotion, formulating a plan for each fiscal year, evaluating results at the end of that fiscal year, and formulating the next year’s plan based on the results. The compliance promotion plan and results are reported to the Board of Directors.
To raise compliance awareness among employees, the Company issues notifications of changes in laws and regulations, presents compliance-related case studies, and conducts training sessions on laws and regulations related to its business and on compliance issues.
When alleged compliance violations occur, the Compliance Action Committee investigates the facts and causes surrounding the issues and takes appropriate action as necessary, including issuing directives for improvement or measures to prevent their recurrence.
The J-POWER Group has established Compliance Consultation Points at the Internal Audit Department, at an external law firm, and at key subsidiaries to serve as consulting hotlines in the event that employees face compliance issues. The Group makes employees aware of these channels. Employees who use these resources are rigorously protected.
The J-POWER Group’s Compliance Consultation Points
The J-POWER Group conducts an annual survey of all employees in an effort to understand compliance-related risks. Compliance Consultation Points contact respondents whose responses indicate problems to gather additional information.
The survey also seeks out employee opinions on workplace conditions, communication, and work volume on an ongoing basis. These results are shared with operating units and used to improve workplace environments.
Barring Relations with Anti-Social Forces
The J-POWER Group’s policy is to not maintain relations of any sort with the anti-social forces that threaten the order and safety of civil society. The Company has designated an internal department to act as a point of contact in the event that demands or other contacts are received from anti-social forces and has established a system that ensures the quick collection of information and appropriate response in cooperation with specialist external agencies.
Preventing Bribery and Corruption
The J-POWER Group prohibits bribes, illicit payments, and illegal political donations, as well as entertaining or giving gifts to public officials that conflict with the National Public Service Ethics Act or rules prescribed by government agencies. Also, the Company does not offer financial or other rewards to foreign government officials in return for illicit benefits or accommodations. We are careful to avoid actions that might be construed as collusion with politicians or administrative agencies and strive to establish sound and transparent relationships.
In addition, in April 2021, the Company joined the UN Global Compact, declaring its stance against corruption.
The Company has established the Disclosure Committee, chaired by the President, to enhance transparency and accountability in corporate activities. This committee ensures the fair and transparent disclosure of company information in a timely and proactive manner.
Compliance with the Internal Control Reporting System
In response to the internal control reporting system for financial reporting required by Japan’s Financial Instruments and Exchange Act, the J-POWER Group established, maintains, and evaluates its internal control system, mainly through the Accounting & Finance Department and Internal Audit Department.
In fiscal 2020, continuing from the previous year, the Company’s management evaluated the status of the development and operation of internal controls with respect to company- wide internal controls, operational process-related internal controls, and information technology-based internal controls in accordance with the implementation standards of Japan’s Financial Services Agency. The Company determined that its internal control system for financial reporting is effective. This evaluation result was submitted as an Internal Control Report to the Director-General of the Kanto Finance Bureau in June 2021 following an audit carried out by the Company’s Independent Auditor.
Going forward, the J-POWER Group will continue efforts to ensure the reliability of its financial reporting.