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Corporate Governance


Basic Policy

The Group Conduct Guidelines set forth the basic premises to observe as a basic framework for corporate ethics compliance for all group companies as well as each and every one of their executives and employees in the worldwide expansion of Daikin. We strive for compliance by committing to thorough compliance measures under our CSR Action Plan 2020, a medium-term plan that follows our key CSR themes.

Management System

The Corporate Ethics and Risk Management Committee is the organ for leading group-wide corporate ethics activities. It is headed by the officer in charge of compliance and corporate ethics and made up of general managers and presidents of major group companies in Japan. At meetings held twice a year, the committee focuses on solving key issues and reports on efforts by overseas group companies to tackle compliance issues.

Our Group Conduct Guidelines stipulate the appropriate behavior of our directors and employees, and compliance and risk management leaders (CRLs) are appointed in each division and major worldwide group company to ensure thorough compliance. By regularly confirming the state of compliance and risk management efforts, sharing information, and making the Group Conduct Guidelines second nature to everyone, we aim to cultivate a corporate culture and improve a system in which all employees ensure that they and their colleagues are always in compliance.

Compliance System

Compliance System

Compliance Efforts

Ensuring Constant Compliance with Conduct Guidelines through Self Assessments, a Daikin Initiative

Once a year, we use our unique self assessment system to check that we are in thorough compliance and are following the Group Conduct Guidelines. Using this tool, employees check their own actions based on the Group Conduct Guidelines. Based on these self assessment results, they create a to-do list of issues and appropriate solutions in their workplace. They also present and share these issues and solutions via the Corporate Ethics and Risk Management Committee.

In addition, the legal department conducts legal audits in divisions and group companies, while the Internal Auditing Department confirms legal compliance through audits.

Handbook for Corporate Ethics Uses Concrete Examples to Familiarize Employees with Group Conduct Guidelines

Our Group Conduct Guidelines stipulate the appropriate behavior of our directors and employees. The guidelines are available not only in Japanese, but they have also been translated into English and Chinese to make them known to all employees of the Group. To help directors and employees act in accordance with these guidelines, we have also created the Handbook for Corporate Ethics, which uses concrete examples to help all employees attain a thorough understanding of compliance.

For example, Daikin Industries, Ltd. gives employees, along with this handbook, compliance cards that they must carry with them at all times so that they can be sure they are following rules and always be aware of the importance of compliance. In the area of legal compliance, compliance and risk management leaders (CRLs) in each division head efforts to gather the latest legal information and check to see if laws are reflected in company rules and manuals. There are also daily triple checks to ensure everyone is following laws and company rules and manuals.

Handbook for Corporate Ethics
Handbook for Corporate Ethics

Formulating Common Worldwide Rules and Sharing Them with Overseas Group Companies

Daikin has formulated common worldwide rules that it shares with overseas group companies for all Daikin bases around the world to carry out compliance and risk management.

Each overseas group company has created a compliance and risk management system for its own region based on these common worldwide rules.

Each of these systems has compliance committees and Corporate Ethics Handbooks, and they conduct regular self assessments and risk management checks.

In addition, members of the legal department of Daikin Industries, Ltd. regularly visit overseas group companies and join compliance committee meetings in efforts to confirm the state of compliance and risk management and to share information. We held a virtual compliance committee meeting online for the Asia and Oceania region in September 2020, in which over 100 people participated. The legal and compliance committee meeting for the Europe region was held online in March 2021. In March 2021, we took part in a compliance information exchange meeting for China.

Asia and Oceania region compliance committee meeting

Asia and Oceania region compliance committee meeting


Focus on Educating Employees Toward Thorough Compliance

Daikin places a special emphasis on educational activities in order to enhance the awareness toward compliance among every group employee.

At Daikin Industries, Ltd., compliance education is conducted each year targeting all employees based on the Group Conduct Guidelines.

Additionally, employees who are studying look at case studies related to legal matters in specific areas, such as sales, production, and procurement. Education is also divided by employee category, with courses for directors, new employees, newly appointed managers, compliance and risk management leaders (CRLs), and other kinds of employees.

In addition to publishing an ongoing series on compliance in Daikin's in-house magazine to keep employees constantly aware of its importance since 2014, at Daikin Industries, Ltd., employees receive an email newsletter called Daikin Compliance News, which uses familiar case studies to raise employee awareness of the importance of compliance every two months. Moreover, whenever there is an important revision to a relevant law or regulation, all employees take e-learning on the matter. In fiscal 2020, following the enactment of the amended Act on Comprehensive Promotion of Labor Measures (Law on Power Harassment Prevention), we made the prevention of harassment a theme and conducted e-learning for all employees to raise awareness. Moreover, from the perspective of preventing further spread of the COVID-19 infection, we also implemented online training, e-learning, and sharing of case studies on the Intranet.

Education and awareness training are conducted at each overseas group company following the common worldwide rules. Compliance education is conducted based on the laws of each country and rules of the company.

Major Legal Violations in Daikin in Fiscal 2020

The Daikin Group makes it a rule to publicly announce all instances of major legal violations related to business operations.
There were no cases of business-related major legal violations in fiscal 2020 at Daikin.


Help-Line for Corporate Ethics Offers Counseling and Gathers Opinions both Inside and Outside Daikin Industries, Ltd.

Daikin Industries, Ltd. has a Help-Line for Corporate Ethics both inside and outside the company, where employees can give opinions or receive consultation on all corporate ethics matters. Through the helpline, all advice sought and opinions expressed are kept strictly confidential, and reported matters are dealt with promptly and appropriately. No retribution is taken against either those persons reporting problems and seeking advice, or those persons helping investigate the reported matters. Department heads and managers also receive education on harassment in newly appointed manager training, etc. so that they can appropriately deal with the information provided during counseling with their staff.

The legal department investigates all queries and opinions to the Help-Line, and works with related company divisions to decide on measures to prevent the reoccurrence of problems. This makes for the smooth creation of measures and the solution of problems.

To ensure that the help-line is well publicized, the help-line's contact information is provided on the compliance card that all employees carry with them at all times.


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