Corporate Ethics and Compliance

The Teijin Group considers compliance to be essential for creating a sound corporate culture. With this in mind, the Group is committed to ensuring that its officers and employees always act responsibly with high ethics.

Basic Concept

Integrity represents the source of Teijin's compliance and serves as the most fundamental course of action for "enhancing quality of life," a central theme of the Company's Corporate Philosophy.

To ensure that our business activities are carried out with integrity, we rigorously promote the practical application and observance of our Corporate Philosophy, Code of Conduct, Group Ethics Regulations, and other internal regulations, under the supervision of the Board of Directors. In addition to complying with laws and regulations, we require our corporate officers and employees to act with integrity and in accordance with social norms, based on the concept that promoting compliance is essential for creating a sound corporate culture. To that end, we ensure that the Company's corporate officers, starting with the representative directors, lead by example in this regard. At the same time, we provide compliance-related education and awareness activities to the corporate officers and employees of the Company and its subsidiaries. In these ways, we aim to increase shareholder value and enhance the level of employee satisfaction by fostering a corporate culture that respects honest behavior.

Positioning of compliance and risk management


We position compliance and risk management as two important elements that support the Group's internal control.The Teijin Group continues to globalize, and its employees are becoming even more diverse in terms of nationality and value systems. In the management of such an organization, we must foster a corporate culture that not only promotes adherence to laws and regulations but also encourages honest conduct that reflects social norms. Doing so is an important management issue as we aim to achieve the Teijin Group Corporate Philosophy.

Compliance Promotion Structure

The Group CSR Committee holds discussions and shares compliance and risk management policies within the Group. The Group Compliance Subcommittee was established to serve as a task force for this committee. It is chaired by the general manager of the Sustainability Development and Engagement Department and is composed of managers from the compliance departments of each business unit. Confirmation on the status of compliance promotion in each department within the Group are done through this subcommittee.

We also appoint Compliance Risk Management Promotion Managers in each business and at each Group company to encourage the implementation of compliance-related activities. In addition, we appoint Compliance Managers at regional headquarters to assist in promoting compliance-related activities in accordance with local laws, regulations, and social norms.

Under these structures, we verify compliance-related issues in each department within the Group through compliance reports compiled from the hotline reporting system, relevant managerial personnel, and employee awareness surveys. To address the issues identified through these means, we incorporate compliance-related education and awareness activities within the compliance promotion plans of each Group department.

By putting such a plan-do-check-action (PDCA) cycle into motion within our compliance promotion structure, we are able to ensure sustainable adherence to compliance, and conduct regular evaluation and improvement activities. In this manner, we are working to enhance compliance awareness throughout our organization, foster a corporate culture of adherence to laws and regulations, and minimize compliance-related risks.

PDCA cycle of compliance and risk management activities

PDCA cycle of compliance and risk management activities

Corporate Ethics and Compliance Activities

Promoting compliance is essential for creating a sound corporate culture. With this in mind, we carry out educational programs not only on internal rules and laws relevant to our business but also on various aspects of corporate ethics.

We also operate a counseling and reporting system (hotline) that is designed to facilitate self-resolution of internal legal and ethical problems.

Spreading Awareness about the Code of Conduct

New Code of Conduct.

The Teijin Group has established the Code of Conduct as its approach to realize the Group's Corporate Philosophy and ensures that all officers and employees of the Group are fully acquainted with it. When they join the company, employees pledge to comply with the employment rules and other regulations, including the Code of Conduct, and to work sincerely.

The Teijin Group Code of Conduct comprises the five following elements, which are derived from the letters of T/E/I/J/IN.

Respect diversity: Together
Emphasize the environment, safety, and health: ESH
Value good faith: Integrity
Recognize one another and create vitality: Joy at work
Aim for innovation: INnovation

Continuing on from FY2021, we created videos with subtitles in the local languages of all regions and countries in which the Teijin Group operates, to deepen understanding of the Code of Conduct in the context of more specific behavior, and disseminated them to all Group companies.

The videos are animations featuring five characters using the five colors of the Code of Conduct conceptual diagram, and presents the story of learning about the Code of Conduct through behaviors in various situations at the workplace.

In FY2022, we made videos on "Respect for human rights," "Fair and transparent business transactions," "Respect, protection, and utilization of intellectual properties," and "Relationships with business partners and affiliates."

Tax policy of the Teijin Group

In order to comply with laws and regulations regarding the tax practices of the countries, regions and multilaterals in which the Teijin Group operate, we have established a tax policy as a basic standard for taxation in April, 2022. By paying taxes appropriately in accordance with this policy, we aim to perform our social responsibilities and become a corporate group that can gain the understanding and sympathy of society at large while at the same time striving to increase our corporate value.

Workshops for all employees during the Corporate Ethics Month

The Teijin Group has designated October every year as the Corporate Ethics Month when training is conducted targeting all executives and employees (including contract/temporary employees), and posters are also put on display.

In FY2022, we held a workshop that made use of the Teijin Group Corporate Ethics Handbook, which is available worldwide in the languages of all regions and countries where we conduct business.

Employee participation rate in the workshop for Corporate Ethics Month was 93% (97% in Japan and 83% overseas), based on a survey completed by participants after the workshop was finished.

We displayed posters with "Be Unique, but Work as One" as the slogan and encouraged employees to act in accordance with the Code of Conduct. With regard to languages, the posters were prepared in 16 languages--Japanese, English, Chinese (simplified and traditional), Korean, Thai, German, Dutch, Vietnamese, Spanish (European and Latin American), French, Burmese, Portuguese (European), Czech, and Hungarian--of all regions and countries where the Teijin Group conducts business.


Implementation of the corporate ethics awareness survey

Utilizing a global survey platform, we implemented an employee awareness survey to assess the level of awareness toward our Corporate Philosophy and Code of Conduct among Teijin Group corporate officers and employees in each country, and to reflect relevant feedback in future compliance promotion activities. In FY2022, the survey targeted 19,867 personnel (excluding the IT business), 59% of which provided responses.

In addition to conventional questions on topics such as our corporate philosophy and Code of Conduct, the FY2022 survey assessed awareness through questions on compliance risks (human rights, Competition Law, privacy, bribery, conflict of interests, and data integrity, etc.) listed in the Teijin Group Corporate Ethics Handbook. Each item was evaluated on a five-point scale.

The results of the survey will be shared with the Chief Sustainability Officer (CSO) and the heads of each business organization and utilized to assess compliance-related issue and examine future measures for fostering an organizational culture and promoting compliance.

Ease of speaking up

In my workplace, I can report bad news (mistakes, quality issues, failure to meet targets, etc.), regardless of the severity of the problem, without hesitation.

Awareness of corporate ethics

In my workplace, our accomplishments are not evaluated if they are made in violation of compliance.

Groupwide application of corporate ethics and compliance

1. Level-based workshop training

Every year, as part of level-based workshop training for employees at group companies in Japan, the CSR and Compliance Department conducts training on the reasons why companies undertake corporate ethics and compliance activities and the roles of employees. In FY2022, we returned to holding face-to-face training for new employees in which, combined with e-learning programs, 249 employees participated.

2. Rotational training

We have been conducting on-site corporate ethics training whereby members of the Sustainability Development and Engagement Department visit sites of each business and affiliate company since FY2016. In FY2022, we held a total of eight training sessions in Japan in which 273 employees participated.

This training uses case studies from both inside and outside of the Teijin Group and aims to create an awareness that corporate ethics and compliance issues can affect anyone, anytime. Moreover, by creating a curriculum to suit the needs of each business/affiliate company, this training is proving to be even more effective. In FY2022, Teijin Holdings USA, Inc. held a total of 18 rotational training sessions, with 770 employees participating.

3. Support for promotion managers

Before the Group Compliance Subcommittee held its meetings in the first half and second half of the year, the Sustainability Development and Engagement Department visited with compliance promotion managers in each business to share information on the Companywide status of compliance and compliance-related issues and to hold discussions on the future direction of compliance promotion in each business organization.

4. Workplace training/education

The Teijin Group always post educational materials and case studies on its intranet so that promotion managers can conduct training on corporate ethics, compliance, and other topics as needed at each workplace in Japan and overseas and supports environments that facilitate independent training and study by employees.

Counseling and reporting center operations

Number of Incidents Reported (including Overseas) in FY2022

The Teijin Group has created counseling and reporting system as a means for officers and employees as well as business partners to report directly on violations, suspicious conduct, and other issues at Teijin and its subsidiaries. Furthermore, the operational status of the internal whistleblowing system is reported to the Board of Directors on a regular basis, so that they can provide relevant supervision.

We launched a counseling and reporting system in 1999 for all group employees. Currently, this service is available to anyone working in Japan for an organization of the Teijin Group. A reporting/consultation website page for outside suppliers has been available since 2006. In addition to this, every year since FY2013, during Corporate Ethics Month in October, we directly distribute envelopes to employees for the Corporate Ethics Opinion Box to all employees at group companies in Japan.

Employees who work for Group companies are able to use the Corporate Ethics Opinion Box, direct reporting, and other means among the Group's counseling and reporting system. In North America, Teijin Holdings USA, Inc., and in China, Teijin (China) Investment Co., Ltd. each established counseling and reporting center, and Teijin Frontier Co., Ltd., INFOCOM Corporation, and Teijin Aramid B.V. established counseling and reporting center and accept counseling and reports from officers and employees of these companies and their affiliated companies.

In March 2019, we also established a new global hotline that enables all officers and employees of overseas Group companies to directly report to the Teijin Group headquarters hotline in their local languages.

The Rules for the Teijin Group's WhistleBlowing were newly established in 2019 to set for the operational responsibilities, authority, and procedures regarding these Teijin Group counseling and reporting systems. In addition, we have introduced an internal leniency program that allows the CSO to issue an opinion on reduction of or exemption from disciplinary measures imposed on a person who reports improper conduct according to the circumstances.

Reports and consultations which could possibly become major risk issues are reported to and handled properly by top management. While protecting privacy, the content and responses to all issues raised by employees via consultations/reports are disclosed to employees every six months on the intranet for the purposes of raising employees' awareness and as a preventative measure.

Violations of rules in FY2022

We investigated the reports we received through the internal whistleblowing system and by relevant managerial personnel up to FY2022. The violations recognized through this investigation and the number of appropriate measures taken to address them are as follows.

Corruption, fraud, or bribery 0
Discrimination and sexual harassment 4
Breach or leak of customer information 0
Conflict of interest 0
Money laundering or insider trading 0
Other 13
Total 17

Continued Operation and Strengthening of the Security Export Control System

For the Teijin Group, whose business is expanding globally, compliance with laws and a fully functioning security export control system are vitally important. In light of this, we have established the Group Security Export Control Regulations governing the corresponding Security Export Control Regulations and Detailed Implementation Rules, which apply to each Group company that conducts exports. We implement this via a dual-level control system, placing specialist back-office staff at the head office and business units to ensure a highly reliable level of security export control.

The laws that must be complied with in security export control are frequently amended, so an important factor in training activities is to ensure high levels of awareness and thoroughness within the business units in regard to the latest information. In this regard, we conduct regular training and promote skills development of employees by encouraging them to sit external practical skills certification exams.

In FY2022, the final year of Medium-Term Management Plan 2020-2022, the Group Security Export Control Conference, comprising committee members from each business unit, identified issues to address during the period of the next medium-term management plan. The conference also commenced initiatives aimed at making enhancements in terms of corporate structure and human resources, in particular, so that we can better respond to the rapidly changing environment surrounding export security.