compliance

The Itoki Group considers compliance not only to be about complying with laws and company rules, but also to be the most important element in promoting fair business practices. Under one of Itoki's corporate philosophies, "Adhering to the right business practices and sparing no effort or diligence," we have established a compliance promotion system and are actively working to strengthen compliance awareness among all executives and employees of the group.

The Itoki Group has established a Compliance Committee as the highest body for promoting compliance. The committee met three times in fiscal 2024 to plan and propose company-wide measures. Specific measures are implemented and supervised by compliance promotion committee members and promotion officers established in each region, who promote activities across the entire company.

Based on the "Guidelines for Price Negotiations for Appropriate Pass-On of Labor Costs" published by the Japan Fair Trade Commission on November 29, 2023, the Itoki Group has established the following five guidelines to steadily promote the appropriate pass-on of labor costs as an ordering party, in the spirit of "adhering to the right business practices" as stipulated in Itoki's corporate philosophy.

1. We are conscious of optimizing transaction prices with all our contractors.
2. We respect the published materials presented as the basis for pricing.
3. We will regularly hold discussions with contractors regarding the transfer of labor costs.
4. If we are asked to pass on labor costs, we will negotiate in good faith and will not treat you unfavorably because you have been asked to pass on labor costs.
5. We will properly keep records of price negotiations and share them with all contractors.

In addition, to ensure thorough logistics compliance, we have established the "Code of Conduct for Compliance with Antimonopoly Act, etc. in Logistics Compliance." Based on these guidelines, we will steadily promote compliance initiatives.

Since 2024, we have been holding regular compliance meetings with Tarkus Interiors Pte Ltd, a Singapore-based company and a major Group company, with the aim of raising compliance awareness among overseas Group companies. We seek to improve understanding of the Itoki Group Code of Conduct with advice from a Singaporean lawyer and a Japanese lawyer working in Singapore.

In order to prevent harassment, protect the dignity of employees as individuals, and prevent workplace disorder and disruption to business operations, in fiscal 2024 we conducted a total of 21 harassment training sessions, divided into general employees and managers, primarily for employees working at factories across the country. In addition, we continue to disseminate information via our intranet and other means.