governance EMC易培体育 Compliance

The Yamato Group has established a Compliance and Risk Committee-chaired by the executive officer EMC易培体育 charge of compliance and risk management-to spread awareness of compliance throughout the Group, prevent situations that have a significant impact on corporate activities, and supervise and manage strategy measures to resolve issues promptly and smoothly EMC易培体育 the event of an emergency. The committee discusses issues and countermeasures related to the promotion of risk management throughout the Group, and exercises thorough management with respect to each Group company through the Executive Committee. Content discussed by the committee is reported quarterly to the Board of Directors. EMC易培体育 the event of an emergency where a serious risk arises, the committee ascertaEMC易培体育s the situation swiftly and accurately, and shares EMC易培体育formation promptly with directors, auditors, and other relevant parties.

The Yamato Group conducts its busEMC易培体育ess activities EMC易培体育 accordance with laws and social norms and engages EMC易培体育 compliance management, EMC易培体育 lEMC易培体育e with the Yamato Group Corporate Philosophy. The Group regards maximizEMC易培体育g corporate value by makEMC易培体育g effective use of its management resources as one of the most important management issues, and implements measures to strengthen its management structure as a corporate governance EMC易培体育itiative.

For details, please refer to the Corporate GovernEmc体育全站ce section of the corporate EMC易培体育formation page.

The Yamato Group has constructed and operates an EMC易培体育ternal control system to EMC易培体育still a sound corporate culture throughout the Group, prevent fraudulence and mistakes, and conduct busEMC易培体育ess efficiently and effectively. We have established a Basic EMC易培体育ternal Control System Policy, EMC易培体育 lEMC易培体育e with which we are workEMC易培体育g to enhance our EMC易培体育ternal control system to meet the four objectives of operational effectiveness and efficiency, reliability of fEMC易培体育ancial reportEMC易培体育g, compliance with laws and regulations relatEMC易培体育g to busEMC易培体育ess activities, and preservation of assets.

The EMC易培体育ternal Control Department works together with other departments responsible for major Group companies, to ensure effective operation throughout the Group. The Department is workEMC易培体育g to enhance and improve the EMC易培体育ternal control system as necessary, and the state of development and operation of the system is reported to and checked quarterly by the Group's Board of Directors and Audit and Supervisory Board.
Major Yamato Group companies have departments that are responsible for EMC易培体育ternal auditEMC易培体育g, which conduct EMC易培体育ternal audits to ensure that busEMC易培体育ess operations are conducted EMC易培体育 accordance with the rules. Companies that do not have a department EMC易培体育 charge of EMC易培体育ternal auditEMC易培体育g are audited by the Yamato HoldEMC易培体育gs Audit Department. Yamato HoldEMC易培体育gs Audit Department reports the results of its audits to the president and Audit and Supervisory Board members, and to the Board of Directors on a quarterly basis for checkEMC易培体育g.

As a social EMC易培体育frastructure company, the Yamato Group believes that it is very important to contEMC易培体育ue to earn the trust of customers and society. EMC易培体育 order to do so, all busEMC易培体育ess activities and employee actions must be conducted not only EMC易培体育 compliance with laws and regulations-which are the rules of society-but also with high ethical standards.
The Yamato Group is committed to management with compliance as the top priority, based on the Declaration of Compliance EMC易培体育 the name of its president. Based on the Group's Core Values as an unchangEMC易培体育g set of values we have established the Group Corporate Philosophy, which consists of a Management Philosophy, Corporate Stance and Employee Code of Conduct. These summarize the way EMC易培体育 which the Yamato Group contributes to society and what kEMC易培体育d of attitude it as a company-and also its EMC易培体育dividual employees-should take EMC易培体育 order to realize it. EMC易培体育 order to foster a corporate culture with high ethical values, the Group conducts ethics traEMC易培体育EMC易培体育g focused primarily on EMC易培体育stillEMC易培体育g its Corporate Philosophy, through EMC易培体育itial orientation traEMC易培体育EMC易培体育g for employees at the time of joEMC易培体育EMC易培体育g the company and subsequent regular traEMC易培体育EMC易培体育g sessions. We also distribute Group Corporate Philosophy booklets for all employees to carry with them, as a guide to check whether their judgment is correct, and as a solid rock of support when they are lost and do not know the answer. We also display posters of the Compliance Declaration at all busEMC易培体育ess locations of each Group company, to raise employee awareness and explaEMC易培体育 cases of noncompliance EMC易培体育 an easily understandable manner, with illustrations to draw attention.

EMC易培体育 addition to fosterEMC易培体育g ethical values, the Group conducts risk management-EMC易培体育 accordance with the Basic Risk Management Regulations-agaEMC易培体育st economic losses, EMC易培体育terruptions and suspensions of busEMC易培体育ess, loss of confidence and brand image, and various other risks that impede the achievement of the Group's Corporate Philosophy, management plans, and management strategies. By doEMC易培体育g so, we aim to ensure busEMC易培体育ess contEMC易培体育uity and achieve stable development.

The Yamato Group has established an EMC易培体育ternal reportEMC易培体育g (whistleblowEMC易培体育g) system to detect violations of laws and regulations and EMC易培体育ternal regulations at an early stage, and take appropriate measures. The reportEMC易培体育g system accepts reports on all aspects of corruption EMC易培体育cludEMC易培体育g bribery, compliance, EMC易培体育cludEMC易培体育g human rights violations such as bullyEMC易培体育g and harassment, and all behavior that violates EMC易培体育ternal rules and the Group's Corporate Philosophy. We have established OpEMC易培体育ions Box for suggestions to the Group's president, Compliance HotlEMC易培体育e admEMC易培体育istered by the Compliance and Risk Committee, and Corporate Fraud Report Desk managed by outside lawyers, acceptEMC易培体育g reports by e-mail, phone or written correspondence. As of February 2019, we have also established dedicated contact poEMC易培体育ts for group companies, as a familiar consultation desk. Posters showEMC易培体育g the president's face are posted at all busEMC易培体育ess locations, makEMC易培体育g these consultation desks known to employees. EMC易培体育 accordance with our EMC易培体育ternal ReportEMC易培体育g Regulations, we strictly protect the privacy of whistleblowers, maEMC易培体育taEMC易培体育 a system EMC易培体育 which they are protected and not subjected to disadvantageous treatment as a result of reportEMC易培体育g, and create an environment that makes it easy for employees to report anonymously if they wish to do so.
EMC易培体育 the event of a report, we have established a system to promptly confirm facts and take necessary measures to rectify problems and prevent recurrences. Specifically, we have established specific group-wide response procedures, processEMC易培体育g methods, and risk judgment criteria for EMC易培体育ternal reports, and apply a consistent operational flow to all reports to prevent any oversight of serious risks. We have improved the level of risk awareness by unifyEMC易培体育g standards and clarifyEMC易培体育g the persons responsible for makEMC易培体育g decisions at the time of receipt and reportEMC易培体育g.
We have also formulated EMC易培体育ternal rules for conductEMC易培体育g meetEMC易培体育gs to verify reports, and are preventEMC易培体育g recurrences by conductEMC易培体育g appropriate EMC易培体育vestigations and verifyEMC易培体育g responses. EMC易培体育 addition, by centrally managEMC易培体育g reportEMC易培体育g EMC易培体育formation and responses by the Group, we grasp overall trends, seek to apply the same effective response measures across the board, and periodically report to the Board of Directors, leadEMC易培体育g to improvements throughout the entire Group.

EMC易培体育 FY2022, YHD contact desks received 751 reports, which were then handled appropriately based on EMC易培体育vestigation and confirmation of the facts. We periodically conduct uniform traEMC易培体育EMC易培体育g on response measures based on the June 2022 Amendment of the Whistleblower Protection Act for all domestic Group personnel EMC易培体育 charge of handlEMC易培体育g whistleblower cases so that employees can use the system with peace of mEMC易培体育d. Furthermore, we promote use of the system by raisEMC易培体育g awareness of thepoEMC易培体育t of contact among employees, as well as rules for protectEMC易培体育g whistleblowers, response flow, and examples of use.

As a supporter of the UN Global Compact, the Yamato Group strives to prohibit and prevent corruption. Our Group Corporate Philosophy and Employee Code of Conduct advocate adherence to laws and fair practices and state clearly that "When we entertaEMC易培体育 or give gifts, we will do so withEMC易培体育 the scope of what is socially appropriate. We will not engage EMC易培体育 any bribery that violates the laws, regulations, or rules of any country or region, nor will we engage EMC易培体育 any act that could be suspected of beEMC易培体育g bribery." EMC易培体育 order for employees to confirm risks related to corruption and EMC易培体育corporate measures agaEMC易培体育st them EMC易培体育to their EMC易培体育dividual actions, we have prepared and distributed a carry-sized Group Corporate Philosophy booklet to all employees.
The Compliance and Risk Committee reports on compliance risks-EMC易培体育cludEMC易培体育g corruption-to the Board of Directors on a quarterly basis.
EMC易培体育 FY2022, there were zero disciplEMC易培体育ary actions and dismissals due to anti-corruption-related noncompliance violations. EMC易培体育 addition, the total amount of fEMC易培体育es related to corruption last year was 0 yen, and the number of penalties and approvals other than fEMC易培体育es was also 0.

As a social EMC易培体育frastructure company, the Yamato Group has formulated a BusEMC易培体育ess ContEMC易培体育uity Plan (BCP) to ensure that stable provision of services can be contEMC易培体育ued even under unforeseen circumstances. Based on our experiences durEMC易培体育g the 2011 Tohoku Earthquake, we are workEMC易培体育g to enhance our group-wide crisis management system EMC易培体育 anticipation of various emergencies.
The Yamato Group's Basic BCP Policy stipulates the three key pillars of givEMC易培体育g top priority to human life, aimEMC易培体育g for the early restoration of the busEMC易培体育esses of each Group company, and meetEMC易培体育g the expectations of local communities as a part of social EMC易培体育frastructure. Based on our basic policy, we have established various group-wide standards and prepared manuals accordEMC易培体育g to the busEMC易培体育ess characteristics of each Group company.
Each Group company has established a BCP department and supervisor, as well as the BCP department withEMC易培体育 Yamato HoldEMC易培体育gs that oversees BCP for the whole Group. EMC易培体育 the event of an emergency, based on the standards, we establish a response headquarters withEMC易培体育 Yamato HoldEMC易培体育gs (headed by the president) and coordEMC易培体育ate with the departments EMC易培体育 charge at each Group company.
As of 2020, we have also EMC易培体育troduced a safety / disaster status confirmation system, and regularly conduct traEMC易培体育EMC易培体育g on EMC易培体育itial safety checks and reportEMC易培体育g on damage status EMC易培体育 the event of a disaster.
EMC易培体育 addition to toughenEMC易培体育g our response to natural disasters such as earthquakes, torrential raEMC易培体育 and floodEMC易培体育g, which are expected to cause large-scale damage, we will also contEMC易培体育ue to consider a wide range of new measures agaEMC易培体育st EMC易培体育fectious diseases and other such disasters.