Governance ReportFair Operating Practices

A Corporation Trusted by Society

Promotion of Compliance

ISO 6.2.3 Decision-making processes and structures
6.6.3 Anti-corruption
6.6.4 Responsible political involvement
6.6.5 Fair competition
GRI G4-56、G4-57、G4-58、SO3、SO4、SO5、SO8

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.

Compliance Promotion System

Compliance Promotion System

1 CP: abbreviation of compliance

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

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 (13 times a year). The themes
  • Implement e-learning (4 times a year)
Group company
  • O rganize 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
Specialized contractors Souyu-kai

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.


Improvement in Compliance Awareness

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

In FY2016, we used the e-learning format to organize four compliance training courses for all officers and employees on the topics of Fraudulent Conduct Related to Contracts and Construction, Violation of the Antimonopoly Act, Fraudulent Accounting, and Information Leaks. We have achieved a participation rate of 100%.

Compliance training participation rate ・・・100%

Initiatives to Ensure Fair Subcontracts and Eliminate Anti-Social Forces

Taisei Corporation has adopted Promoting Partnerships with Supply Chains in its Group Action Guidelines, and stipulates that relationships of fairness and mutual trust be built with suppliers and that transactions be conducted on an equal footing.
Furthermore, we have set out Measures for Dealing with Anti-Social Forces and Organizations, stipulating that we will take a resolute stance against anti-social forces and will not comply with illegitimate demands. In order to eliminate anti-social forces, we have included a condition in our contracts, including the basic contract for specialized sub-contractors, declaring that the supplier is not an anti-social force and that if revealed otherwise, the contract may be cancelled without notice.

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 and checks compliance with the Construction Business Act, Antimonopoly Act and the Subcontractors Protection Act. The results are reported to the in-house Auditing Department.

Intellectual Property Protection, Management and Utilization

ISO 6.2.3 Decision-making processes and structures
6.6.7 Respect for property rights

Practicing Intellectual Property Policy and Intellectual Property Strategy

Taisei Corporation has formulated an Intellectual Property Policy, based on which we practice our Intellectual Property Strategy. 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.
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. We also take measures to reduce the risk of infringing the intellectual property rights of third parties, such as making technical departments and business departments thoroughly aware of other companies' patent information.
In addition, we conduct training to ensure that employees are fully informed about this policy and utilize intellectual property strategically in order to strengthen our competitiveness and improve our corporate value.

At a training course

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

Formulated in January 2007. Partly revised in 2012.


Practice Intellectual Property Strategy

  • Intellectual Property Department, Taisei Technology Center

In FY2016, we conducted 22 intellectual property courses for technical departments in head office and operational departments in branch offices, including the utilization of application rights and a series of awareness campaigns about infringement.

Number of training regarding intellectual property rights ・・・22 times

Information Security Measures

ISO 6.2.3 Decision-making processes and structures
6.6.7 Respect for property rights

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 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.

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

<Various Policies>
  • Policy on the Protection of Personal Information
  • Code of Conduct on the Use of Social Media

Overall Perspective on the System of Information Control Rules

Overall Perspective on the System of Information Control Rules

Appropriate Information Management and Measures to Prevent Information Leakage

Information security pocketbook

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.
We have been promoting a tighter information security environment at overseas business offices and construction sites since FY2016.
We have summarized the minimal rules to be followed in a pamphlet, and conducted education and instruction for all officers and employees as well as specialized constructors and other partner companies.

Robust Customer 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.

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.


Raising Awareness of Information Security

  • Corporate Planning Section, Information Planning Department, Corporate Planning Office

We conducted 16 courses on company-wide information security at eight companies in the Taisei Group and there were no material information security accidents announced outside the Company.

Number of major information security accidents ・・・0 cases

Supply Chain Management

ISO 6.2.3 Decision-making processes and structures
6.6.6 Promoting social responsibility in the value chain
GRI G4-12、EN32、EN33、LA14、LA15、HR1、HR4、HR5、HR6、HR10、HR11、SO3、SO4、SO5、SO9、SO10

Procurement Policy and System

Taisei Corporation adopted Promoting Partnerships with Supply Chains and formulated the Procurement Policy as part of the Group Action Guidelines to promote CSR procurement activities with cooperating companies and across the whole supply chain.
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.

Formulated in April 2013

CSR Procurement Initiatives in FY2016

As noted in stakeholder dialog, CSR procurement initiatives are growing in importance amid increasing social concerns in recent years about the risk of human rights violations in the supply chain.
In FY2016, we began creating a framework for voluntary CSR procurement activities by formulating procurement policies at major Group companies.
We also carried out briefings on the significance of CSR procurement for the first time in approximately three years for the Souyu-kai member companies, who are our main cooperating companies, and conducted a CSR activity survey. Internally, we carried out briefings for international branch offices and the Procurement Division as part of our awareness campaign on CSR procurement.

Future Initiatives

In addition to conducting CSR procurement briefings at overseas construction sites, we will visit the Souyu-kai member companies that accept foreign technical intern trainees and confirm the actual conditions under which they are accepted. In this manner, we aim to improve the quality of the supply chain by carrying out targeted CSR procurement activities.

Human Resources Development Aimed at Overseas Transfer of Japan's Advanced Construction Technologies

Taisei Corporation actively accepts foreign technical intern trainees, whom specialist contractors (cooperating companies) employ, at specified model sites. Especially for the Vietnamese technical intern trainees, we visit, inspect and evaluate the local sending organizations, and make recommendations to the specialist contractors together with the partner supervising groups. The purpose of this activity is to promote the overseas transfer of Japan's construction technologies and to address and aid the issue of the shortage of skilled construction workers for specialist contractors.

Results of 2nd CSR Procurement Activity Survey

  Civil Engineering Building Construction Total
Number of companies surveyed 74 449 523
Number of companies responding 60 272 332
Response rate 81.1% 60.6% 63.5%
Implementation rate 67.2% 61.6% 62.6%
★Implementation rate

In order to ensure that cooperating companies understand our CSR procurement guidelines and carry out CSR activities in line with the guidelines, we conduct CSR activity surveys about whether or not they are carrying out specific measures. The percentage of total survey items for which the response is "measures taken" is called the "implementation rate," and we request all of our cooperating companies to continue to improve their implementation rate.


Promotion of CSR Procurement

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

According to the CSR activity survey implemented in 2016, the implementation rate of CSR activities at cooperating companies based on the procurement guidelines established by Taisei Corporation was 62.6%. We will continue to carry out awareness campaigns with the aim of improving the implementation rate in the future.

Average implementation rate of companies where CSR activity survey was conducted: ・・・62.6%