Governance Report

A Corporation Trusted by Society

Promotion of Compliance

ISO 6.6.3 Anti-corruption
6.6.4 Responsible political involvement
6.6.5 Fair competition
GRI G4-37,G4-57,G4-58,SO4,SO5,SO7,SO8,SO11

Compliance Policy and Systems

The Group Action Guidelines for the Taisei Group state that in order to fulfill its social responsibilities, the Taisei Group shall adhere to laws and regulations, etc. (laws and ordinances, bylaw, administrative guidance, customs and other social rules, and various company rules and regulations). The guidelines also state that the company must act in good faith and fulfill contracts and promises with customers, suppliers, or the local community in all sincerity. This is the basis of compliance for all officers and employees of the Taisei Group.
As indicated in the diagram below, each department at Taisei Corporation has deployed managers, promoters, and implementers to install the in-house compliance promotion system and to strengthen compliance based on the opinions and recommendations of the Compliance Committee.

Company-wide risk management system

1 CP: abbreviation of compliance

2 Promotes and embeds compliance awareness among officers and employees. Also functions as a secretariat for the Compliance Committee

3 All heads of departments are appointed compliance implementers. The heads of each department educate and inform all officers and employees in their own departments about compliance.

Raising Awareness of Compliance

In order to raise awareness of compliance, Taisei Corporation systematically implements education and training for all officers and employees, as well as specialized contractors. We also endeavor to strengthen group compliance by organizing periodic conferences for staff who are responsible for legal affairs at the domestic Group companies as a system for information sharing and exchange of opinions regarding issues related to legal affairs.

Organization Description
Taisei Corporation
  • Publish the Compliance newsletter (12 times a year). The themes addressed in FY2015 include employment management of foreign employees, proper subcontracting, and healthcare management for workers and proper construction systems etc.
  • Implement e-learning (3 times a year)
Group company
  • Organize conferences for staff with responsibility for legal affairs at ten Group companies in Japan (once a year)
  • Guidance on KPI establishment to six companies in Japan (see p. 45)
Specialized contractors Souyu-kai
  • Compliance training at the Safety Conference *4 (once a year / 12 branch offices)
  • Promote CSR procurement (see p. 54)

4 A conference that aims to inform specialty constructors about safety management.

Whistle-blowing and Consultation System

At Taisei Corporation, we have set up the Corporate Ethics Helpline, a system for whistle-blowing and consultation where acts contravene laws and ordinances or the Group Action Guidelines.
We have established consultation desks in-house and at an external organization (a law firm). Based on the Whistleblower Protection Act, all information about the whistleblower is treated as confidential and any adverse action as a direct result of any whistle-blowing is prohibited. Since April 2016, we are accepting anonymous tips in order to nip a wide range of illegal activities in the bud.

Verification of Compliance with Laws and Regulations (Guidance)

In order to ensure the legitimacy of bids, Taisei Corporation operates an in-house system whereby the heads of branch offices confirm, produce the documents, and keep all bids on file. Every year, the legal department verifies the legitimacy of bids at all the branch offices and checks compliance with the Construction Business Act and the Subcontractors Protection Act. The results are reported to the in-house Auditing Department.

KPIs

Improvement in Compliance Awareness

  • Compliance Promotion Section, General Affairs Department, Business Administration Division

In FY2015, we used the e-learning format to organize three compliance training for all officers and employees. The average participation rate was 90.8%. We also organized compliance training for specialized contractors at all twelve domestic branch offices.

Compliance training participation rate ・・・90.8%
 
Branches where compliance training was
implemented for specialized contractors
・・・12branches
  (all domestic branch offices)

Supply Chain Management

ISO 6.6.6 Promoting social responsibility in the value chain
GRI SO3,SO4,SO5,SO7,SO8,SO9,SO10,LA14,LA15,HR1,HR4,HR6,HR10,HR11

Procurement Policy and System

Taisei Corporation adopted Promoting Partnerships with Supply Chains, as well as formulated the Procurement Policy* in 2013, as part of the Group Action Guidelines. We promote CSR activities with business partners and across the whole supply chain based on the Procurement Policy.
We have established the CSR Procurement Committee composed of the Corporate Planning Department, the Corporate Communication Department, the Safety Administration Division, the Building Construction Division, the Civil Engineering Division, and the Procurement Division as the structure for promoting the concept of CSR in procurement activities.

Procurement Policy (excerpt)

Under the TAISEI Group philosophy, "To create a vibrant environment for all members of society," we are committed to carrying out our procurement activities in accordance with this Procurement Policy in order to create safe and attractive spaces, as well as work and living environments of exceptional value, with the aim of providing products and services that are in harmony with nature.

  1. Compliance with Laws, Regulations and Social Norms
  2. Fair Business Dealings
  3. Respect for Human Rights
  4. Promotion of Safety and Hygiene
  5. Commitment to Environmental Conservation
  6. Ensuring and Improving Safety and Quality
  7. Information Disclosure
  8. Commitment to Information Security
  9. Activities Contributing to Society
  10. Business Continuity in Times of Disaster
  11. Promotion of CSR (Corporate Social Responsibility) Procurement

Formulated in April 2013

Implementation of CSR Procurement

Implementation of CSR Procurement in Taiwan

In FY2015, we implemented the concept of CSR in procurement activities in Taiwan as part of efforts to promote CSR Procurement overseas. Our business partners in Taiwan deepened their understanding of CSR Procurement at Taisei Corporation.
From 2013 to 2014, we monitored the member companies of the Souyu-kai, which is an organization set up for the key suppliers among our business partners. In FY2015, we visited some of the suppliers where we had identified deficiencies during the monitoring process to confirm that initiatives had been put in place to improve the situation with CSR Procurement since the monitoring exercise.

Overseas CSR procurement monitoring

Summary No. of
companies
Guidance
Companies to be monitored 10
  • Compliance with laws and regulations and social norms
  • Health and safety initiatives
  • Environmental protection initiatives
  • Ensure safety and quality
Companies responding to monitoring form 10
Companies issued with guidance 2

Future Initiatives for CSR Procurement

The focus of attention is on CSR Procurement initiatives across the whole supply chain such as the formulation of a procurement code for the Tokyo Olympics.
Since FY2016, we intend to carry out awareness campaigns and monitoring at the Souyu-kai member companies with the aim of providing more information about CSR procurement. We will also implement awareness campaigns at international branch offices and procurement departments. Together with our business partners, we plan to improve the quality of the supply chain and contribute to building a sustainable society.
In order to promote CSR Procurement in the name of the Taisei Group, we are implementing initiatives to formulate procurement policies at all major Group companies.

KPIs

Promotion of CSR Procurement

  • CSR Promotion Section, Corporate Communication Department, Corporate Planning Office

In FY2015, we monitored CSR Procurement at ten of our major business partners in Taiwan where we are involved in a comparatively large number of construction projects. The implementation rate was 100%.

Number of companies monitored for CSR
Procurement
・・・10companies

Intellectual Property Protection, Management and Utilization

ISO 6.6.7 Respect for property rights
GRI SO8

Intellectual Property Policy

Taisei Corporation respects the intellectual property of other companies while recognizing and making appropriate use of our own intellectual property which is an important asset. To clarify the corporate attitude to intellectual property, we formulated the Intellectual Property Policy * in January 2007. It is our aim to make strategic use of intellectual property to increase corporate value and to strengthen corporate competitiveness.

Policy on Intellectual Property(excerpt)

In order to further improve the intellectual property power of group companies, an intellectual property strategy is implemented that covers the creation, protection, and utilization of intellectual property, reduction of intellectual property risks, strategic utilization of brands, etc.

Norms of Conduct

  1. Promote intellectual property-based business and R&D strategies
  2. Establish a structure for strategic acquisition and management
  3. Promote strategic utilization
  4. Thoroughly enforce intellectual property risk management
  5. Improve group-wide intellectual property capabilities
  6. Improvement of brand value through the use of intellectual property

Formulated in January 2007. Partly revised in 2012.

Implementing the Intellectual Property Strategy

Taisei Corporation has put the Intellectual Property Strategy into practice based on the Intellectual Property Policy. We strategically manage and utilize all intellectual property including patents, copyright, construction and business know-how to promote management that is focused on intellectual property. Regarding management of intellectual property, we intend to improve operational efficiency through building a search function for our own patents and preparing a database for managing patents. As a part of our information security measures, we have tightened the handling of classified information and we have established Rules for Handling Intellectual Property Information in order to prevent leaks of technical know-how or other confidential business information.

At a training course

Intellectual Property Course Content

  1. Basic knowledge about the Patent Act
  2. Secrets of patent creation
  3. Introduction to construction and civil engineering patents
  4. Examples of infringement
  5. Trademark branding
  6. Introduction to search tools

Information Security Measures

ISO 6.6.7 Respect for property rights
GRI SO8,PR8

Appropriate Information Management and Management Rules

Taisei Corporation has formulated policies and action guidelines in order to protect and make appropriate use of company information. We have also systematically built rules and regulations concerning company-wide information security systems and information management. We established Taisei-SIRT in order to strengthen the system for responding to security incidents involving electronic information. We have been actively involved in the Nippon CSIRT Association since joining in March 2013.

Overall perspective on the system of information control rules

Raising Awareness of Information Security

The Information Security Pocketbook, compiled by Taisei Corporation and used for group training, sets out the absolute minimum in terms of rules that all officers and employees must observe.
Intended to ensure robust management of customer information, the Pocketbook is distributed to specialized construction companies and other partner companies for education and guidance. It is also used on the information sharing website for construction sites (SagyoshoNet).

Electronic information security incidents: Incidents and accidents including information leaks that threaten information security or have an impact on business operation.

Measures to Prevent Information Leakage

Prevent Information Leakage
Under the slogan "ICT Safety First!," Taisei Corporation implements a range of information security measures. Together with all Group companies, specialized constructors, and other partner companies, we aim for zero incidents related to information security. In FY2015, we prepared the environment and structures for log file inspection by means of log analysis tools to swiftly detect cyber attacks.
Appropriate Information Transmission
In 2012 we developed the Code of Behavior for Using Social Media and Guidelines for Social Media Usage to provide employees with guidance on information transmission that is based on sensible behavior.
Robust Customer Information Management and Personal Information Management
To manage information required by customers based on the Guidelines for Managing Customer Information, we set security levels according to the confidentiality level of each project, transmitting information to the relevant in-house departments, and implementing appropriate customer information management. In FY2015 we also ran a campaign to reinforce information security and we made sure employees were aware of the ban on taking photographs on company premises. Personal information is handled by a designated manager in line with the Personal Information Manual. In case of a request for data disclosure, the designated manager will respond in consultation with the competent department for handling the personal information. The manual also specifies the purpose of collecting personal information when partner companies register to use the SagyoshoNet information sharing website or the SUPER-TRIO procurement website.
Improving Information Security Levels across the Construction Industry
We aim to improve information security levels across the whole construction industry, not only Taisei Corporation, by providing partners and other companies in the same industry with free access to a personal computer security diagnostic website jointly developed with a security vendor.

KPIs

Practice Intellectual Property Strategy / Improve Information Security

  • Intellectual Property Department, Taisei Technology Center
    Corporate Planning Section, Information Planning Department, Corporate Planning Office

In FY2015, we conducted thirty intellectual property courses for technical departments in head office, operational departments in branch offices, and construction sites including the utilization of application rights and a series of awareness campaigns about infringement. We organize 26 courses on information security at all companies in the Taisei Group and we released information about four major information security accidents.

Number of training regarding intellectual property rights ・・・30times
 
Number of major information security accidents ・・・4cases