Fiscal 2019 CSR Activity Report

Corporate Ethics and Legal Compliance

Governance

Ensure all executives and employees uphold a sense of responsibility, fairness and high ethical standards, and act with a keen sense of compliance to maintain the trust of society

Basic Approach

Toray Group’s corporate philosophy is “Contributing to society through the creation of new value with innovative ideas, technologies and products.”

To deliver on this commitment, Toray Group is contributing to society by leveraging innovative technologies and advanced materials to tackle important global issues. This efforts requires that the Group earn and maintain the trust of diverse stakeholders by ensuring that its business activities comply with the laws and regulations of the countries where it does business, and by always acting with integrity.

Top management is taking the initiative by giving the highest priority to securing compliance, and by requiring that the Group and its suppliers facilitate ethics and compliance practices.

Related Policies

Internal Rules for Ethics and Compliance

Toray Industries, Inc. has established a set of internal rules for ethics and compliance, together with related standards and procedures. These internal rules set out the framework for practicing corporate ethics and legal compliance, and they are designed to foster a healthy corporate culture. The rules also outline how to respond to issues, identify causes and prevent recurrence, as well as initiatives to be taken by group companies in and outside Japan.

Ethics & Compliance Code of Conduct

Ethics & Compliance Code of Conduct

Toray Group has established the Ethics & Compliance Code of Conduct as an important rule which every Toray Group executive and employee must comply with.

Structure

Toray Industries has established an Ethics and Compliance Committee, which is chaired by the president with membership comprising the Company's vice-presidents. At this committee, management and workers come together to consider and discuss policies related to corporate ethics and compliance. The status of the whistle-blowing system in Toray Group, including number of reports (consultations) received through hotlines and the outline of the cases, are reported to directors by the Ethics and Compliance Committee.
In fiscal 2019, the Ethics and Compliance Committee convened twice to deliberate on and discuss the results of fiscal 2018 initiatives, action plans for fiscal 2019, and the progress of implementation thus far. The committee also discussed individual measures such as revision of Toray Group Ethics & Compliance Code of Conduct.
In each workplace, the general manager of the division or department serves as a leader, facilitating initiatives in a top-down manner.
In initiatives for group companies around the world, Toray Group has established the Affiliate Companies’ Compliance Meeting and the Overseas Affiliate Companies’ Compliance Meetings under the Ethics and Compliance Committee. Through these committees, Toray Group is promoting compliance activities in each company, country and region.

CSR Road Map Targets and Results

No major cases throughout the Toray Group of non-compliance with or violation of bribery regulations, antitrust laws, etc.

[Related material issue for CSR]

  • Corporate ethics and legal compliance
■KPI
Number of major violations of laws or ordinances
■Reporting scope
Toray Group
■Target in fiscal 2019
0

Result in fiscal 2019

11

Promote compliance activities in accordance with the conditions of each country or region

■KPI
Implementing internal legal and compliance audits of group companies, group companies improving problems found in internal legal and compliance audits in the previous year (%)
■Reporting scope
Toray Group
■Target
Audits: In fiscal 2019 at group companies outside Japan; in fiscal 2017 and 2018 at Toray Industries, Inc. and its group companies in Japany
Percent that improved: 100% for all audits by the following fiscal year

Result in fiscal 2019

100

Enhance awareness-raising and educational activities relating to corporate ethics and legal compliance

■KPI
Group companies providing information and implementing education on major laws and regulations
■Reporting scope
Toray Group
■Target in fiscal 2019
100%

Result in fiscal 2019

100

  1. 1 Toray discovered in March 2020 that Suido Kiko, a subsidiary engaged in water and sewage facility engineering, had potentially allowed an employee to take the First Class Civil Engineering Works Execution Managing Engineer test despite not having satisfied the practical experience requirements for this test. Thereafter, a third-party committee was established and commissioned to investigate the facts and make recommendations on how to prevent a recurrence. On September 24, we received the report of the investigation by the third-party committee, and on September 25, we reported to the Ministry of Land, Infrastructure, Transport and Tourism on the content of the report and measures to prevent a reoccurrence.
    Going forward, the Group will strive to further strengthen compliance and prevent any similar recurrence.

Looking to the Future

With the slogan “Have the Integrity to Do the Right Thing in the Right Way,” since fiscal 2018, Toray has been promoting initiatives including the following four principles for taking more effective action to ensure compliance.

Compliance Action Principles

  • B : Be fair, be honest and have Integrity
  • E : Encourage respect and communication
  • A : Adopt a genba1 approach – Look to the facts!
  • R : Responsibility as a member of our excellent company
  1. 1 Genba is the Japanese word for “actual worksite.”

B.E.A.R.

Under the name “Mission BEAR,” taking its acronym from the first word of each principle, Toray Group companies establish action plans and execute initiatives in line with the actual conditions of each company.

Toray Group performs regular follow-up to check the progress of each group company. Outstanding initiatives are shared with other companies in the Group, which are encouraged to independently enhance their compliance activities.

In fiscal 2019, Toray Industries continued to assist and monitor compliance initiatives at group companies and actively share compliance-related best practices and educational materials. Through the efforts, the Company strengthens the Group’s overall risk response by emphasizing factors unique to each region and type of business while reinforcing integrity driven corporate culture.

Activity Reports

Click below on activity reports for fiscal 2019