CSR Activity Report (CSR Guideline Activity Reports)

Ethics and Compliance

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

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

Ethics & Compliance Code of Conduct

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 2020, the Ethics and Compliance Committee convened twice to deliberate on and discuss the results of fiscal 2019 initiatives, action plans for fiscal 2020, and the progress of implementation thus far. The committee also discussed individual measures such as revision of the Toray Group Ethics & Compliance Code of Conduct and implementation of the compliance month.
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, the Group is promoting compliance activities in each company, country and region.

CSR Roadmap 2022 Targets

CSR Roadmap goals

  1. No major cases throughout the Toray Group of non-compliance with or violation of bribery regulations, antitrust laws, etc
  2. Implement monitoring to raise ethical and compliance awareness throughout Toray Group
  3. Enhance awareness-raising and educational activities relating to corporate ethics and compliance

Main Initiatives and Key Performance Indicators

KPI
⑴ Aim for no major cases of non-compliance with or violations of laws and regulations
2-❶
⑵ Practice appropriate transactions based on free, fair, and transparent market competition
-
⑶ Prohibit any association with organized criminal groups or other anti-social forces and take a firm stance against them
-
⑷ Conduct internal legal audits and improve problems found in the audits
2-❷
⑸ Appropriately operate a whistle-blowing system
-
⑹ Thoroughly disseminate the Ethics & Compliance Code of Conduct
-
⑺ Provide information and implement education on major laws and regulations and other compliance-related matters
2-❸
Key Performance Indicator (KPI) Target Fiscal 2020 Result
Fiscal 2020 Fiscal 2021 Fiscal 2022
0 0 0 11

Audits: Conduct at Toray Industries, Inc. and its group companies in and outside Japan
Percent that improved: 100% for all audits by the following fiscal year

Improvement rate: 100%2
100% 100% 100% 100%
  1. Reporting scope : Toray Group
  1. 1 Toray International, Inc., a trading subsidiary of the Toray Group, received a warning from the Director-General of the Trade and Economic Cooperation Bureau at Japan’s Ministry of Economy, Trade and Industry. The warning cited the fact that a portion of carbon fiber that the company had been exporting to China with an export license under the Foreign Exchange and Foreign Trade Act was transferred to unauthorized third parties, and the fact that there were inadequate transaction screening which allowed the unauthorized transfer. It requested the company to implement recurrence prevention measures and to strictly comply with export control. Having caused such a situation, Toray Group will work to thoroughly implement export control and ensure compliance throughout the Group to prevent a recurrence.
  2. 2 Including companies under improvement.

Related Materiality for CSR

  • Corporate ethics and legal compliance

Click here for a PDF summary of materiality-related CSR Roadmap 2022 main initiatives, KPIs and progress (PDF: 1.6MB).PDF

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 genba3 approach – Look to the facts!
  • R : Responsibility as a member of our excellent company
  1. 3 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 2020, Toray Industries continued to assist compliance initiatives at group companies and actively share compliance-related best practices, such as the Compliance Month, new educational tools, and educational materials in videos that employees can learn from even while working remotely. 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.

Fiscal 2020 CSR Activity Report

Click below on activity reports for fiscal 2020