Risk management and Compliance


Basic ideas and policies

The Showa Denko Group believes that compliance provides the basis of its business continuity and is essential for the achievement of its vision. Accordingly, we comply with social norms of each country and region, and corporate ethics as well as laws and regulations. In addition, we are implementing the system and conducting a range of activities to spread ethical values based on honesty, impartiality, and integrity.
  * For employee education on corporate ethics, please refer to the “Thorough corporate ethics”.

In 2019, we had no cases of serious compliance violations and received no sanctions, including fines, for compliance-related issues.

Corporate Ethics Hotline

Corporate Ethics Hotline We operate the Corporate Ethics Hotline so as to be able to detect from across the Showa Denko Group any incidents of noncompliance or unfair and other behaviors that contravene corporate ethical standards at an early stage in order to resolve them.
Employees can make a report via Showa Denko’s website and intranet as well as through the external law firm designated by the company. Not only Group employees but also all other stakeholders, including suppliers and local residents, can make reports to the Group through the hotline. For national staff of Group companies outside Japan, we have also been providing a multilingual hotline service (external service in 12 languages) since April 2018. The hotline service can be used anonymously both within and outside Japan, and we clearly state that we respect the privacy of service users and prohibit any disadvantageous treatment of users by their companies. For each of the reports made to the hotline internally and via the external contact, we talk to the company/site in question, and the department in charge conducts a survey on the issue to confirm the facts. If noncompliance with laws, regulations and others is confirmed as a result of the survey, we promptly take corrective actions. For serious issues, reports are made to the Sustainability Promotion Council chaired by the director in charge of CSR and to the Board of Directors, including details of the internal report made to the hotline, the survey, corrective actions, and measures to be taken to prevent the reoccurrence of similar problems.

The secretariat of the Corporate Ethics Hotline received 52 reports and requests for consultation in 2019. After prompt and careful investigation of the details, we took corrective measures as necessary.
Regarding the cases of harassment, including those involving sexual harassment and abuse of power, which account for about 50% of the cases for which requests for consultation were made, we conduct relevant training for managers of Group companies toward the reduction of such cases.

■ System for the Corporate Ethics Hotline

Tax compliance

The Showa Denko Group set the tax code of conduct based on the recognition that it is one of the social responsibilities of an enterprise to contribute to society’s growth through tax payment in all countries and regions where it conducts business activities. We will make appropriate and prompt responses to the taxation system and regulations of each country and region, while continuing to provide employees with training to maintain and raise their tax compliance awareness.

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