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Compliance Management

Initiatives

Vision of the Group Compliance Framework

The Mitsui Chemicals Group is working to build a compliance infrastructure that is a prerequisite for achieving VISION 2030, so that each Group company can focus on its business with sufficient knowledge of how to manage compliance matters.
Specifically, the Group classifies compliance management into four phases: "prevention" and "detection" in normal times, and "initial response" and "permanent response" for emergency situations, and implements various measures at each phase in a comprehensive manner. With these initiatives, we aim to develop and establish the PDCA cycle on a Group and global level, as well as to further raise compliance awareness.

Vision of the Group Compliance Framework

Prevention

Key control measures

In order to prevent compliance violations, the Group will analyze past cases of compliance violations that have occurred in the Group, summarize control actions and procedures that are effective in preventing frauds as key control measures, and incorporate them into the Group's overall business processes. Each Group company then verifies its own operational processes based on the key control measures and manages and oversees its operations to prevent compliance violations, thereby ensuring autonomous control. By FY2023, 39 companies in our Group will have started implementation (19 completed). We plan to gradually expand the number of companies introducing the system from FY2024 onward as well.

Compliance Level Assessment

We have initiated a Compliance Level Assessment to help each Group company identify its own compliance management status and challenges. Each Group company implements its own improvement activities based on the assessment results, and the headquarters functional divisions support each Group company, identify challenges that need to be addressed by the Group as a whole, and develop necessary measures. Based on the trial results in FY2022 from seven companies in our Group, we developed a system and implemented the trial at five Group companies in FY2023. We plan to gradually expand this from FY2024 onward.

Detection

The Group has introduced a whistleblowing system to detect compliance violations as quickly as possible. Since FY2022, we have been strengthening the system in Japan, China, and the Asia-Pacific region in phases to accommodate multiple languages, time zone differences, and other factors. We will expand to all regions in the future.

Initial response (case response)

To implement a prompt and appropriate initial response in the event of a compliance violation, we have established standards and processes for Group companies to report to the head office, as well as clearly defining the organizational structure, roles, and response process for a task force comprising members from headquarters functional divisions with expert knowledge of the matter.

Permanent response (Group-wide response)

For each case of compliance violation that occurs, we formulate and deploy Group-wide measures to prevent recurrence, and clearly define the roles of the task force and headquarters functional divisions, as well as the response process.

Fostering culture that respects compliance

It is essential to foster a culture where compliance is respected so that the Mitsui Chemicals Group officers and employees will voluntarily and autonomously comply with laws, regulations, and rules. In January 2023, we issued a message from the President & CEO and at the same time launched an internal portal site that consolidates compliance-related information to ensure that officers and employees have more opportunities to understand the importance of compliance. In particular, in response to the discovery of quality fraud in FY2023, top management sent an urgent message across the Group, expressing determination to further improve systems and build a corporate culture that will prevent fraud.

In addition, the "Compliance Education Video" is being used throughout the Group as an e-learning program to raise awareness of compliance for officers and employees alike.

Top message from the President & CEO regarding initiatives to ensure compliance in the company newsletter Top message from the President & CEO regarding initiatives to ensure compliance in the company newsletter