Fair Operating Practices

Compliance, Fair Competition

Policy and Management

At the Taisei Group, we established the Action Guidelines for Compliance Promotion System Taisei Personnel and the Taisei Group as a Whole as a basic principle of corporate behavior and a standard of conduct and judgment that all officers and employees of the Taisei Group should actively practice and comply with.
These Action Guidelines serve as the norm for ensuring compliance. The Fundamental Policy to Enhance Operational Compliance Systems clearly sets out that Members of the Board shall recognize that compliance is at the core of good management and shall faithfully comply with all compliance-related regulations, including the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole. These Action Guidelines are also applied to all group companies both in Japan and overseas.
The Rules on Enforcement of the Compliance System for the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole clearly state the procedures for disposition in the event of a violation of the Group's Action Guidelines. The facts are reviewed carefully and rigorously by the Board of Directors or the Management Council and disciplinary action is taken in accordance with in-house rules. In addition, a whistle-blower system functions appropriately to enable crucial information regarding officer or regular employee compliance violations and the like to be reported to management without delay. Moreover, severe disciplinary action is taken for officers and regular employees who commit acts in violation of the law, etc., and systems are established to ensure compliance with the Antimonopoly Law, and in addition various measures based on recommendations from the Compliance Committee as well as compliance training for individual departments are conducted and so on, in order to increase awareness of the importance of compliance on the part of each employee. In addition, we have identified "Thorough Compliance and Restructuring of Group Governance System" as a part of Materiality (Important Tasks for the Taisei Group) and this has been established as an important policy in the Taisei Group Medium-term Business Plan (2021-2023). In addition, "compliance training ratio 100% (including anti-corruption)" has been established as a KPI objective.
Furthermore, as shown in the diagram on the right, the Company has appointed managers, promoters, and implementers in each division, and has established an internal compliance promotion system. In addition, the Compliance Committee, chaired by an external expert (lawyer), has been established as the Special Committee that responds to consultations with the President.
We are working to heighten the awareness among all officers and employees and further ensure compliance by establishing a system to set stricter disciplinary actions, etc. against any legal and other violations committed by officers and employees and to call for compliance with the Antimonopoly Act, implementing various measures based on the recommendations by the Compliance Committee and compliance training in each division, and taking other steps.

Compliance Promotion System

  • *1CP: abbreviation of compliance
  • *2Promotes and embeds compliance awareness among officers and employees. Also functions as a secretariat for the Compliance Committee.
  • *3All 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.

Promotion Framework

Compliance Education and Training

At Taisei Corporation, we conduct annual compliance training for all executives and employees to raise compliance awareness.
In addition, to strengthen compliance across the entire Group, we regularly hold meetings for legal affairs officers to share information and opinions on legal affairs issues with Group companies in Japan. We also hold group compliance hearings to confirm the status of compliance promotion and exchange opinions, and strive to ensure thorough compliance and promote communication.
Furthermore, compliance training is conducted annually for business partners (specialized contractors) and new employees of the Soyukai (Taisei Corporation's proprietary organization for core subcontractors) to ensure thorough compliance throughout the supply chain.

Souyukai ;

The history of the Souyukai, the organization of the Taisei Corporation's main cooperating companies, began with the establishment of its predecessor, the Harusamekai, in 1917. The Souyukai was re-inaugurated in February 2014 to achieve enhanced collaboration between Taisei and member companies, which numbered approximately 700 as of April 2021. The Souyukai focuses on improving the construction capacity of member companies and promoting stable administration through cooperation in Taisei projects.

Conduct Compliance Questionnaire (Annually)

The Taisei Group conducts the Compliance Questionnaire for all officers and employees with the aim of understanding the current status and issues related to compliance and further promoting compliance.
The results of the questionnaire are analyzed, measures are considered, reported to top management, and disclosed to all officers and employees through the Compliance Newsletter, and necessary measures are taken in cooperation with related departments to promote compliance.

Education / training Themes covered in recent years
Compliance Newsletter(monthly)
  • Promotion of partnerships with suppliers
  • Operational results of the Corporate Ethics Helpline
  • The Action Guidelines for Taisei Personnel and the Taisei Group as a Whole
  • Anti-corruption (entertainment and gifts)
  • Results of compliance questionnaire, etc.
e-learning training
(twice a year)
  • Bribery, harassment, and whistleblowing system
  • Power harassment
  • Rules related to contact with other companies in the same industry and
    in-house leniency system, etc.

Whistleblowing and Consultation System

Based on the Whistleblower Protection Act, at the Taisei Group, we have established an internal whistleblowing system (the Corporate Ethics Helpline / Group Helpline /Whistleblowing System) in which executives and employees as well as external parties (employees of partner companies [primary suppliers] that have a direct contractual relationship with the Company) can report and consult on illegal acts including bribery and other corruption committed by executives and employees and acts that violate (or an act intended to violate) the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, and we have established consultation desks in-house and at an external organization (a law firm). The system also allows anonymous reporting to obtain information clues on a wide range of violations. In addition, to enhance the effectiveness of the system, we actively conduct educational activities such as distributing the Help Line Cards summarizing the outline of the system to all officers and employees, and introducing the contents and operational results of the system through e-learning and Compliance Newsletter.
In response to reports received, we will investigate the facts and take corrective measures as necessary. In doing so, we ensure that whistleblowers' information must be kept confidential and strictly follow internal rules to ensure that whistleblowers are not treated disadvantageously for reporting purposes.

Operational results of Whistleblowing and Consultation System FY2019 24 cases
FY2020 28 cases

Flow of Internal Whistleblowing Based on the Helpline System

Political donation

As part of its social contribution activities, Taisei Corporation makes political donations when necessary. When making political donations, we thoroughly comply with the Political Funds Control Act and conduct a rigorous review based on procedures pursuant to our internal rules, namely, the “Code of Conduct on Relationship with Politicians and Disbursement of Expenses.” The total amount of political donations made during FY2020 was 18 million yen.

Anti-Corruption Policy

KPIs Compliance training ratio 100% (including anti-corruption)

In 2018, Taisei Corporation signed the United Nations Global Compact, and we support the anti-corruption measures in the Compact. We have specified “Ensuring fair trade” and “Maintenance of proper relationships with individuals or entities engaged in politics and government” in the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, and we maintain a constant awareness of the importance of avoiding bribery and acts that may be misunderstood. For example, we make it clear to outsourcing companies and their officers and regular employees to not provide or promise to provide illicit money or goods, or to entertain or give gifts in excess of social norms and, in their relations with politicians or public employees (including foreign officials), to not perform acts that are in violation of penal laws regarding bribery or the like, or acts that might be misunderstood, and to provide anti-corruption education and training for all employees with regard to politicians or public employees (including foreign officials).

Review of Compliance with the Group's Action Guidelines and Handling of Violations

The Taisei Group specifies in its "Rules on Enforcement of the Compliance System for the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole" that, in the event that a regular employee or executive has violated the Group's Action Guidelines (including anticorruption, etc.), the facts are reviewed carefully and rigorously by the Board of Directors or the Management Council, and disciplinary action is taken in accordance with in-house rules.
In the event of a serious violation of compliance against the Action Guidelines, we thoroughly implement measures to prevent the recurrence of the violation. We also strive to accurately ascertain the facts by investigating relevant factors, including related persons, course of events, nature and details of the violation, amount of damage, and impact on persons of interest, and then report to relevant authorities as necessary. The perpetrators are subject to necessary disciplinary action, including dismissal.
There were no cases subject to legal action, such as a fine or penalty due to corruption, in fiscal 2020. There were also no employee disciplinary actions and dismissals due to a violation of the Action Guidelines.

Impartial and Fair Transactions

At Taisei Corporation, we have set forth “Promoting partnerships with subcontractors and suppliers” under the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, and declare establishing fair and reliable relationships with our partners in the supply chain and conduct transactions 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 reject illegitimate demands. In order to eliminate anti-social forces, we have included a condition in our contracts, including the basic contract for specialized subcontractors, declaring that the supplier is not an anti-social force and that if revealed otherwise, the contract may be canceled without notice.
In August 2020, we prepared and announced the Declaration of Partnership Building which incorporates prosperous coexistence for the entire supply chain, new collaboration regardless of the company's scale and existing business relationships, and observance of “Promotion Standards” as defined in the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises. We disseminate our stance on impartial and fair transactions in connection with preventing corruption to employees of the Company and group companies as well as to our suppliers, including sub-contractors and intermediaries. We also cover impartial and fair transactions in our CSR Procurement Guidelines and work to reduce risks so as not to get involved in transactions with anti-social forces, corruption, bribery, and organizations engaging in inhumane labor.

Verification of Compliance with Laws and Regulations (Guidance)

To ensure the legitimacy of bids, Taisei Corporation has an in-house system in which branch office managers confirm that there are no inappropriate acts in the process of bidding operations, prepare the documents, and keep all bids on file.
In addition, each year the legal department verifies the legitimacy of bids and checks compliance with the Construction Business Act, the Antimonopoly Act and the Subcontractors Protection Act.

Specific Measures for Compliance with the Antimonopoly Act

Taking the fact seriously that we were indicted on suspicion of violating the Antimonopoly Act in connection with the Linear Chuo Shinkansen construction project, we have implemented the measures indicated below based on deliberations by the Compliance Committee chaired by an external lawyer and resolution by the Board. We continued to operate and implement the measures below in fiscal 2020.

  1. Revision and tightening of internal rules relating to contracts with competitors (September 2018)
  2. Reinforcement of procedures to confirm the appropriateness of the bidding process (September 2018)
  3. Implementation of e-learning for all officers and employees (implemented every fiscal year since fiscal 2018)
  4. Implementation of training by an external lawyer for officers and employees in the sales departments and the technical departments that engage in operations related to taking orders (implemented every fiscal year since fiscal 2018)

Tax Compliance

The Group Action Guidelines call for Taisei Corporation to act in accordance with laws, regulations and so on, as well as to fulfill its social responsibility by acting for the good of society. We understand that the Base Erosion and Profit Shifting (BEPS) Project of the Organization for Economic Cooperation and Development (OECD) and other international initiatives are important to ensure tax transparency and prevent international tax avoidance, and we appropriately fulfill our tax obligations and maintain thorough compliance with relevant laws and regulations, directives, guidance, tax treaties and so on including tax laws both domestically and in each foreign country and region, such as refraining from conducting business activities that are in violation of the spirit of tax laws, etc. or that are solely for the purpose of tax avoidance or income transfer.
In August 2020, we formulated a Tax Policy to serve as a guide to observing tax-related laws and regulations and fulfilling social responsibility. In addition, the Rules on Enforcement of the Compliance System for the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole clearly state the procedures for disposition in the event of a violation of the Group's Action Guidelines.

Tax Policy(excerpt)

  1. Compliance with Laws and Regulations
    We will comply with the relevant laws and regulations concerning tax affairs at each country and each region where we are engaged in business activities on the basis of our Group Action Guidelines.
  2. Proper Performance of Tax Obligations
    We will duly perform the tax obligations subject to the laws and regulations concerning tax payment.
  3. Enhancing Awareness of Compliance with Tax Laws and Regulations
    We will enhance the awareness of compliance with the tax laws and regulations through education regarding adequate tax practice and payment.
  4. Relationship with Tax Authorities
    We will endeavor to maintain the relationship of mutual trust with tax authorities through faithful and adequate dealing with tax affairs.

Thorough Awareness of Structure of Values and Policies

We created a portable card for the Structure of Values and Policies which was restructured in 2010 and have worked to instill and firmly establish it. Since fiscal 2011, we have operated annual training on the Structure of Values and Policies based on an e-learning format in order to further spread and consolidate the Structure of Values and Policies while connecting it to social demands and in-house initiatives.
In fiscal 2020, we conducted an e-learning program for employees on the theme of the Structure of Values and Policies, the Taisei Spirit, and the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole. The participation rate was 94%.

Promote CSR procurement

Policy and Management

The Taisei Group strives for “promoting partnerships with subcontractors and suppliers” and “ensuring fair business transactions” as stated in the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, along with the Procurement Policy established in reference to ISO 26000. We have issued the CSR Procurement Guidelines (formulated in 2014) to familiarize suppliers with the contents of their compliance with the guidelines. We also request that CSR activities be conducted in accordance with the guidelines.
The effort to raise awareness of CSR procurement includes holding educational training and seminars tailored to individual responsibility levels such as officers and employees at all levels, branch managers, procurement managers, worksite managers, and overseas worksites, etc.; and providing suppliers with opportunities to participate in meetings with branch managers, e-learning training, on-site surveys and questionnaires, etc., among various other activities. Plans and results of these activities and future developments are discussed at the CSR Procurement Committee composed of responsible personnel from relevant divisions including Civil Engineering, Building Construction, Procurement, and Safety Administration, and reported to the CSR Committee.
In addition, we have identified "Promotion of Supply Chain Management" as a part of Materiality (Important Tasks for the Taisei Group) and this has been established as an important policy in the Taisei Group Medium-term Business Plan (2021-2023). In addition, " Supplier's conformity rates with the Taisei Group CSR Procurement Standards 100%" has been established as a KPI objective.

Procurement Guideline (Summary)

  1. Compliance with laws, regulations and public morals
  2. Impartial and fair transactions
  3. Respect for human rights
  4. Promotion of safety and hygiene
  5. Environment protection activities
  6. Assurance and improvement of safety and quality
  7. Information disclosure
  8. Reinforcement of information security
  9. Social contribution activities
  10. Business continuity at the time of a disaster
  11. Promotion of CSR procurement

Promotion committee

Officer in charge

Chief of Corporate Planning Office

Organ for consultation CSR Committee (Committee of the Board)
  • Important matters related to supply management that have been deliberated are proposed/reported to the Board via the Management Committee.
Promotion committee CSR Procurement Committee
  • The committee organizes and conducts training and explanatory meetings, survey visits, questionnaire surveys,and the like.
Secretarial CSR Promotion Section, Corporate Communication Department, Corporate Planning Office

Identifying factor for CSR guidelines

E: Environment

Reduction of environmental burden and prevention of environmental pollution
Achievement of a carbon-free society (and prevention of global warming)
Effective use of resources
Conservation of water resources
Promotion of "green" procurement with low environmental load
Consideration for natural ecosystems and the global environment
Reduction of emissions of industrial wastes, hazardous chemical substances and pollutants and appropriate management to prevent environmental accidents
Participation in activities designed to reduce environmental load at workplaces

S: Society

Respect for human rights
Respect for diversity
Prevention of harassment and employment discrimination
Appropriate management of working hours, days off and vacations
Payment of appropriate wages and securing a minimum wage
Respect for the right to organize and the right of collective bargaining
Prevention of child labor and forced labor
Establishment of a healthy and comfortable work environment that ensures the health and safety of workers
Establishment of an appropriate safety management organization to prevent industrial accidents
Ensuring the safety and hygiene of the local community
Securing the quality and safety needed by clients
Establishment of a quality control system
Improvement of technological capabilities and development of new technologies and new materials

G: Governance

Compliance with laws, regulations and societal norms
Establishment of a compliance organization
Making sure there are no ties with antisocial forces
Establishment of systems for internal communications
Protection of intellectual property and prevention of infringement
Thorough measures to prevent corruption
Thorough measures to ensure fair transactions
Disclosure of information in an appropriate manner and at the appropriate time
Prevention of improper or illegitimate information disclosure or leakage
Establishment of information security systems
Local community development, educational and cultural assistance, and other activities to contribute to society
Establishment of a Business Continuity Plan (BCP)
Cooperation to ensure the business continuity of national and local governments, businesses and other organizations

Other

Deployment and promotion of CSR Procurement with respect to subcontractors and suppliers

Promotion Framework

CSR Procurement Guidelines

We summarized the activities that we want our business partners (suppliers) to promote in the form of CSR Procurement Guidelines (established in 2014), and asked them to conduct CSR activities based on these Guidelines. The Guidelines are continually revised to reflect changes in important environmental and social issues. In 2021, sections were revised based on decarbonization and human rights issues and so on, and a commentary noting specific activities was added.

*Supplier Reference :

  • - Scope of supplier:
    Main Group Companies (Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co., Ltd., TAISEI U-LEC CO.,
    LTD., TAISEI SETSUBI CO., LTD., TAISEI HOUSING CORPORATION, SEIWA RENEWAL WORKS CO.,
    LTD., and J-FAST Co., Ltd). Souyu-kai Mamber Companies
  • - Souyu-kai:
    The organization of Taisei's main cooperating companies (about 620 companies) Safety, Sanitary, and Environmental Cooperation Association: Association to which all the companies that enter Taisei's works sites belong
    (about 7,000 companies)

Risk Management/Assessment

KPIs Supplier's conformity rates with the Taisei Group CSR Procurement Standards 100%

Since 2016, we have been conducting regular questionnaire surveys for suppliers on compliance with our CSR procurement guidelines and on the systems for managing foreign technical interns. In the fiscal 2020 survey, we broadened the traditional scope of around 50 companies centering on Soyukai, our proprietary organization for core subcontractors, to approximately 1,700 companies with which we have constant business transactions. We are thus conducting educational activity for a wider range of business partners. Based on the survey results, we selected some 50 suppliers that have or need to address social challenges including environmental/human rights issues and labor problems. After considering and judging whether a site visit is required, we visited about 12 companies, and, while exchanging opinions with the business owners and the like, requested to enhance CSR activities and educate and instruct their business partners. In this way, we are striving to enhance efforts throughout the entire supply chain. Meanwhile, we have developed an online system and conducted the questionnaire survey through it to improve the usability and accessibility for suppliers regarding the survey.

Supply chain monitoring result (September, 2020)

  • - Target companies :
    Number of major* suppliers * 1,166 companies
    (Percentage of companies surveyed on a contract value basis: approx. 68.5%)
  • - Survey method :
    Progress of the following items, as set forth in the“Procurement Guideline”
    (1) Compliance with laws and regulations
    (2) Impartial and fair transactions
    (3) Respect for human rights
    (4) Health and Safety
    (5) Assurance and improvement of quality
    (6) Information disclosure
    (7) Information security
    (8) Social contribution activities
    (9) Business continuity planning (BCP) (Business activities at the time of a disaster)
    (10) Promotion of CSR procurement.
  • - Average score :
    3.73 (Highest score;5) 74.6%
  • - Survey results :
    In addition to disclosing the tally results on the public website, we visited a total of 12 companies (as of December 2020) to check the status of their efforts and to discuss future improvements with them.
    (Due to the spread of COVID-19, visits planned for January 2021 and beyond have been postponed.)

* Major suppliers: The major 1,645 Japanese companies which the organization of Taiseiʼs main cooperating companies (Souyu-kai) and major cooperating company.

Collaboration with External Parties

United Nations Global Compact (GC), EcoVadis

The Taisei Group participated in the GC in April 2018 and committed to disseminating and implementing the Ten Principles in the four areas of human rights, labor, the environment, and anti-corruption. At the same time, it is actively participating in various subcommittees sponsored by the Global Compact Network Japan (GCNJ), such as the Subcommittee on SDGs and the Subcommittee on Human Rights Due Diligence (HRDD).
In addition, Taisei Corporation registered with EcoVadis from fiscal 2019 as a supplier and started to disclose required information. As of March 2021 evaluation, we gained a SILVER rating.

EcoVadis;

France-based sustainability assessment organization that provides buyer companies with CSR evaluation data on suppliers through an information sharing platform registered by more than 75,000 companies in 190 industries in about 150 countries.

CSR Procurement e-learning

In January 2020, Taisei Group implemented an e-learning program accessible via smartphones for all employees of our company and employees of business partners. Through the program, we introduced our CSR procurement activities and requested their continued cooperation in the future. In addition, in January 2021, we implemented an e-learning program for all employees of our companies. The program will continue to be implemented in FY2021 as well. As we have done since FY 2017, we also continue to offer CSR procurement e-learning to all Taisei employees including those in the Procurement Division. E-learning texts for both current and past years are available on the company Intranet site for reference and study.

CSR Procurement e-learning program (in January, 2021)
Target companies All business partners
Contents What is CSR? What is CSR procurement, and why is it necessary? etc.
Number of participants and participating companies Total of 153 companies, 96 companies
Other In a questionnaire conducted in conjunction with the e-learning program, many respondents raised “Business activities at the time of a disaster” and “environmental conservation activities” as initiatives for which they are not putting in sufficient efforts.

Human Rights Due Diligence Initiatives

Taisei Corporation has established acceptance criteria for the foreign technical interns employed by suppliers, in order to ensure smooth acceptance at workplaces and to enable high-level technical interns to be employed. Local supplying organizations and cooperating monitoring groups are surveyed and information is provided to suppliers.
In recent years, many foreign technical interns in the construction industry have come to Japan, but there have been reports of various improprieties involving foreign technical interns. In the light of this situation, it is important that the outsourcers (prime contractors) for the companies employing foreign technical interns be able to determine the current situation.
Since FY 2017, Taisei Corporation has conducted regular surveys as part of its due diligence for foreign interns in order to assess and identify potential and actual human rights risks, and we have established a human rights due diligence mechanism to prevent or mitigate these risks. Moreover, when it is clear that negative impact with respect to human rights has been produced directly in work processes or there has been complicit involvement, we endeavor to provide help based on proper in-house or outside procedures.
In FY 2020, we asked about the status of employment of foreign technical intern trainees in our CSR activities survey, and responses were received from 219 companies that employ foreign technical interns.
We made follow-up visits to six companies to interview them directly and found no major human rights risks (inappropriate collection of money, pay deductions, non-payment of wages etc.). Taisei has declared a policy (procurement policy) for fulfilling our social responsibility to ensure that foreign workers can engage in their work under appropriate conditions in terms of residential environment and working conditions (content of tasks, working hours, wages etc.).
We conduct regular fact-finding surveys of foreign technical interns and we will ensure that the employing companies foster a better foundation for accepting these interns.

Overview of the Survey on the Acceptance Conditions of Foreign Technical Interns (September,2020)

  • Target companies :
    Number of major suppliers*
    surveyed in FY2020;1,645 companies
  • Survey method :
    A self-check on the following items for companies accepting foreign technical interns, regardless of whether they are being dispatched to Taisei Corporation(Conducted in conjunction with the CSR Activity Survey):
    (1) Checking that employees are in possession of their own passports and other items
    (2) There has been no inappropriate collection of monies such as guarantee deposits
    (3) There are no discrepancies between the prepared technical intern plan and the actual work
    (4) Appropriate payment of wages and deductions
    (5) Living environment, including dwellings
    (6) Status of social insurance enrollment
    (7) Assignment of instructors
    (8) Status of physical checkups
    (9) Troubles due to the internship or living arrangements.
  • Responses :
    Number of responding companies: 219
  • feedback :
    In the related opinion survey that was conducted, many responses suggested "CSR activities" and "major disaster response and activities to preserve the environment" as initiatives that are currently insufficient at Taisei (and its subcontractors and suppliers).

Efforts to Promote Sustainable Procurement of Materials and Equipment

Diverse raw materials including wood and stone are used in the construction industry. For raw materials whose place of origin is a developing country, there is increasing societal concern regarding illegal sourcing (cutting), oppression of native populations, forced labor and child labor and other legal and regulatory violations, environmental destruction, human rights violations and so on.
For this reason, in January 2019 Taisei conducted a questionnaire survey of its major material suppliers, in order to confirm their supply chains from raw material sourcing through delivery at worksites, and to determine whether there had been any legal and regulatory violations, human rights violations, or other violations by the overseas companies in these supply chains.
Based on the survey results below, in FY 2019 we visited the business partners who participated in our questionnaire survey, as well as their wholesalers and trading companies related to wood materials, stone materials and tiles, to conduct a follow-up survey, and explained our Procurement Policy (and the CSR Procurement Guidelines) and requested their understanding of our CSR procurement activities. We also conducted interviews to exchange views regarding the current status and future challenges of traceability.
In an effort to align the supply chain for wooden materials of wooden frames and wooden furniture in particular with the recommendations of NGOs on issues concerning the human rights of native peoples of deforested areas in Southeast Asia, we discussed the current local situation and the future use of domestic timber and certified timber. We plan to continue to periodically review these items and companies and to conduct surveys on an expanded basis.

* traceability survey: To make a production history and distribution channel traceable.

Overview of the Traceability Survey (January 2019)

  • Target companies :
    43 major material suppliers handling wood, stone, ceramics (tiles), sand/aggregate (ready-mixed concrete), aluminum (fittings/hardware), iron (rebar/steel), and copper (electrical wires)
  • Survey method :
    (1) Confirmed the names and locations of the trading companies, manufacturers and wholesalers, etc. in each supply chain, from the sourcing of raw materials to the delivery at worksites
    (2) Checked the overseas companies in the supply chain regarding the presence of violations of laws and regulations, forced/child labor, long working hours, discrimination, consideration provided for employee health and safety, appropriate payment of wages, violations of the rights of indigenous people, etc.
  • Survey results :
    (1) At 32 of these 43 companies, it was possible to identify all of the companies in the supply chain, down to the original raw material suppliers (wood, stone, sand/aggregate, iron).
    (2) There were no cases of improprieties, such as violations of laws and regulations at the overseas companies in the supply chains.

Implementation of CSR Procurement Seminars

Social Supply Chain policy which is communicated globally to all suppliers

Taisei Corporation conducts CSR Procurement Seminars to communicate its stance and policies regarding social issues, with a particular emphasis on forced labor, child labor and other human right violations. These seminars were conducted for our local worksites, local affiliates and local suppliers in Taiwan (2015), Singapore (2017), Vietnam (2018) and Myanmar (2019). The CSR Procurement Seminar held in November 2019 at the worksite for the construction of the New Yangon Specialist Hospital in Myanmar was participated in by 10 people from four local suppliers. We presented an explanation of the purchasing policy and the CSR Procurement Guidelines and held a survey and an exchange of views.
An explanation was also given to the Taisei employees working at the site that day, and their understanding and cooperation was requested with regard to the promotion of CSR activities in cooperation with suppliers at the workplace. As some overseas locations pose a greater risk in terms of human rights and labor issues than locations in Japan, we plan to continue to hold CSR Procurement Seminars overseas. (In FY 2020, these seminars were canceled due to the COVID-19 pandemic.)

Explanation of CSR Procurement by Branch Managers

At the annual Safety Conference (held every year in January) and other venues, each of the managers of all 12 branches in Japan explained the importance of CSR procurement to business partners, and asked for their corporation in the promotion of activities at each company.

Management of Information and Intellectual Property Rights

Policy and Management

The sharing of information with many clients, subcontractors (specialist construction companies, etc.) and other stakeholders in construction projects is essential in the construction industry. The Taisei Group includes "Management of Information and Intellectual Property Rights" in its Group Action Guidelines, and Taisei implements various policies relating to information security. In addition to establishing the Policy to Protect Personal Information and Codes of Practice for the Use of Social Media, the Taisei Group has also established a Policy on Intellectual Property and faithfully implements intellectual property strategies that include those to create, protect and use intellectual property, to reduce risks relating to intellectual property, and for the strategic use of brands.
In addition, we have identified "Thorough Compliance and Restructuring of Group Governance System" as a part of Materiality (Important Tasks for the Taisei Group), and this has been established as an important policy in the Taisei Group Medium-term Business Plan (2021-2023). In addition, " Number of major information security accidents zero " has been established as a KPI objective. Taisei will determine the impact of materiality on society and will clarify issues in accordance with materiality and promote initiatives, in order to resolve social problems and create value through business activities.

Promotion Framework

Intellectual Property Strategy

Taisei Corporation has formulated the Policy on Intellectual Property, 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 implement thorough risk management in all business processes to prevent and mitigate intellectual property-related risks that may cause a material impact on business management, such as infringement of our rights or rights of others, and technology leakage. We have established the Rules for Handling Intellectual Property Information to ensure the management of classified information. We also take measures to reduce the risk of infringing the intellectual property rights of third parties, such as making the technical departments and business departments thoroughly aware of other companies' patent information.
In addition, we have been further enhancing the intellectual property capabilities of the entire Group by establishing systems and exchanging information on intellectual property across the Group.
We also 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. In FY2020, we conducted intellectual property courses for Group companies, technical departments in the head office and operations departments in branch offices of Taisei Corporation as well as e-learning for all officers and employees, including the utilization of application rights and a series of awareness raising campaigns about infringement.

Information Security Measures

KPIs Number of major information security accidents zero

At Taisei Corporation, we have compiled a booklet containing minimum rules to be observed and have been providing education and guidance to all officers and employees as well as business partners. Since fiscal 2016, we have been working to strengthen the information security environment at our overseas sales offices and worksites. We also work to strengthen measures against the risk of information leaks associated with telecommuting (working from home).In addition, in order to prevent and mitigate intellectual property risks such as infringements of rights and technology leaks that have a serious impact on corporate management, we implement thorough risk management in all business processes.
To respond to the increasingly serious risk of cyber attacks, we established the Taisei-Security Incident Response Team (SIRT) and work to collect the latest information on cyber attacks and take measures to prevent cyber attacks in cooperation with external organizations through the Nippon CSIRT Association, which we joined in March 2013.

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