Fair Operating Practices

We use corporate ethics as a basis of performance evaluation and promotion decisions made under the personnel evaluation system and strive to develop human resources who live up to society’s expectations with sincerity.

DNP’s business units and Group companies use evaluation items developed by the responsible head office division to perform self-examination and self-evaluation for constant improvements. This activity has been carried out since 1997 under the motto “Protect our company by ourselves.”

Implemented in 2005 by the responsible head office division as a system to evaluate DNP’s business units and Group companies using common performance indicators. This evaluation is conducted twice a year on a regular basis.

We provide various education and training opportunities, as we believe that a high level of awareness and a correct understanding among employees will make our efforts related to corporate ethics more effective.

We conduct a compliance survey every year to raise employee awareness of the importance of compliance and foster a corporate culture of integrity. We aim to further enhance our governance by gaining new insights through this survey.

Established in 2002 as a whistle-blower system to receive inquiries and reports on matters concerning corporate ethics. In 2015, we also established an external contact point for reporting to and consultation by lawyers, and in 2022, we revised our internal rules in accordance with the revision of the Japan’s Whistle-Blower Protection Act to provide a more secure system for reporting and consultation.

In 2020, we reviewed our internal whistle-blowing system and framework at our overseas bases and established the global internal whistle-blowing system as a new whistle-blowing contact point capable of multilingual responses. In this manner, we are proceeding to strengthen compliance at overseas bases by making quick and appropriate responses.

This hotline, established in 2009, receives information from suppliers and contractors on any misconduct (or possible misconduct) of DNP employees or other parties, which they have come to recognize during their transaction with the DNP Group. In 2022, the name was changed from "Supplier Hotline" to "Compliance Hotline" to clarify that the hotline is only for compliance-related reports and to accept reports not only from suppliers and contractors but also from retirees and others.

企業倫理遵守へのこれまでの取り組み（画像ファイル）

To promote compliance throughout the DNP Group, the Head Office Supervisory Department objectively evaluates the compliance status of each organization every year based on the Compliance Assessment System, identifies issues based on the results, and works to make improvements.

Evaluation items include respect for human rights, information security, environmental conservation, quality assurance, and product safety, and the evaluation method is reviewed as necessary.

DNP conducts a compliance survey every year to raise employee awareness of the importance of compliance and gain new insights into the development of a corporate culture of integrity.

The survey results are analyzed and reported to management, and feedback is provided to each organization to support the implementation of measures that embed and strengthen corporate ethics, thereby further enhancing governance.

In 2002, we established Open Door Room as a consultation hotline for employees who encounter misconduct or other issues and are unable to resolve them through consultation with their superiors, colleagues, or within their own division. In 2015, we established an external Open Door Room hotline staffed by lawyers to receive consultations and reports, and in 2020, we established a multilingual global internal whistle-blowing contact, striving to further enhance the proper functioning of the organization's self-cleansing capabilities throughout the DNP Group. In operating these hotlines, we have formulated the DNP Group Open Door Room Operating Standards based on the Whistleblower Protection Act, creating an internal reporting system where whistleblowers can consult and report with peace of mind. In fiscal 2022, we revised the standards and enhanced the system in response to amendments to the said act. We also operate a consultation room where employees can consult with experts about various concerns they may have, and an inquiry hotline for all stakeholders. Issues that arise from consultations and reports received at each hotline are always dealt with appropriately, such as by taking necessary corrective measures, while protecting the confidentiality of the information and the anonymity of the whistleblower, so that the whistleblower does not suffer any disadvantage. In fiscal 2024, 74 internal reports were received across the DNP Group in Japan and overseas, and all of them were dealt with appropriately and sincerely, and measures were taken to prevent recurrence as necessary.

As a result of these efforts, no serious violations were found in fiscal 2024.

Under the regulations of the Board of Directors, DNP requires that any transactions involving competing businesses or conflicts of interest by directors be resolved by the Board of Directors. In these cases, the Board of Directors assesses the rationale, business necessity and validity of the terms of the transaction. Additionally, DNP annually collects information about related party transactions, including competing and conflicting transactions, from each director in accordance with the regulations regarding financial statements. This information is then audited by accounting auditors, ensuring that the Board of Directors can adequately supervise these matters.

DNP’s basic policy is to maintain political neutrality by not making political donation, either directly or indirectly. There were no instances of any political contributions even in the past three-year period up to FY2024.To anti-social forces that negatively affect public order and sound activities of society, we also prohibit the provision of inappropriate payoffs.