Fair Business Practices
Approach
The DENTSU SOKEN Group strives to ensure compliance with the stipulations of Our Declaration of Conduct, which summarizes our code for the ethical conduct of business, and the Dentsu Group Code of Conduct, compiled by the Dentsu Group, of which we are a member.
We thus seek to prevent bribery; respond to antisocial forces; raise awareness about, and provide education on, antitrust laws and subcontracting laws; provide relevant rules and regulations; as well as conduct transactions that are seen to be fair. There were no cases of corruption, bribery, or anti-competitive behavior in FY2023.
For more information on this promotion structure, see Ethics Compliance.
Policy Regarding Antisocial Forces
In accordance with the Basic Policy on the Rejection of Boryokudan (organized crime groups) and Other Antisocial Forces formulated by the Dentsu Group, DENTSU SOKEN makes every effort to prevent relationships with antisocial forces and eliminate any that may exist.
Basic Policy on the Rejection of Boryokudan (Organized Crime Groups) and Other Antisocial Forces
According to the Basic Policy, each Dentsu Group company considers it its corporate social responsibility to maintain a resolute stance preventing and eliminating relationships with antisocial forces and groups that threaten social order and safety. Thus, as detailed below, ISlD maintains and complies with the Basic Policy on the Rejection of Boryokudan (Organized Crime Groups) and Other Antisocial Forces.
-
1.We will sever any relationship with Boryokudan and other antisocial forces.
-
2.We will resolutely oppose unwarranted demands from Boryokudan and other antisocial forces.
-
3.We will not conduct transactions such as the provision of funds or favors to Boryokudan and other antisocial forces.
-
4.We will make a systematic and an appropriate response to Boryokudan and other antisocial forces through the establishment of internal structures, as well as through cooperation with police, the National Center for the Elimination of Boryokudan, attorneys, and others.
Anti-bribery and Anti-corruption Initiatives
Bribery and Corruption Policy
The DENTSU SOKEN Group always deals in good faith with business partners, including clients, conducting all transactions on the basis of fair play. The guidelines of Our Declaration of Conduct and the Dentsu Group Code of Conduct stipulate the prohibition of all forms of corruption, including bribery and money laundering. DENTSU SOKEN seeks to ensure compliance with these requirements through in-house training, to increase employee awareness, and systems to facilitate whistleblowing.
Political Donations
DENTSU SOKEN made no political donations in FY2023.
Promotion, Dissemination of Employees’ Code of Conduct
Adopting perspectives grounded firmly in ethics and compliance, DENTSU SOKEN created “Our Declaration of Conduct,” an employee code of conduct outlining behavioral standards that should apply when conducting business. The code of conduct covers a wide range of issues, including respect for human rights, social contribution, governance practices, prevention of corruption and fraud, as well as the maintenance of fair and equitable relationships with business partners.
As it strives to promote and disseminate the code, DENTSU SOKEN offers a variety of training programs, including regular e-learning sessions annually for all executives and employees and orientation sessions for new hires. This is to ensure that all members of the organization understand and can independently uphold the code of conduct’s principles.
Internal Reporting System
DENTSU SOKEN established its internal reporting system, the Ethics Hotline, for the early detection and correction of various compliance-related issues that may arise in the workplace, including fraud, corruption, and human rights-related violations, such as harassment. Our Ethics Hotline includes both an internal reporting channel and an external reporting channel staffed by independent attorneys.The hotline is available to all personnel associated with DENTSU SOKEN: its employees, as well as the staff of Group companies and subcontractors. Anonymous reporting is permitted, and we ensure the protection of whistleblowers and maintain confidentiality by applying our ”Ethics Hotline Operating Guidelines,” formulated in accordance with Japan’s Whistleblower Protection Act. We ensure the effectiveness and relevance of the hotline by regularly reminding employees about its proper use.
The DENTSU SOKEN internal reporting system structure is as follows.
Taxation
The DENTSU SOKEN Group complies with the Group Tax Mission Statement and Strategy established by the Dentsu Group, and maintains consistency with business strategies, business activities, corporate value, and social responsibility. Furthermore, by taking appropriate tax positions, we maintain and improve the value of the DENTSU SOKEN Group while paying taxes at the appropriate time and place, and in the appropriate amount.
For information on the Group Tax Mission Statement and Strategy see below.
Taxation Governance
The officer responsible for tax affairs at the DENTSU SOKEN Group is Senior Managing Director, Corporate Supervisor.
Practical operations have been delegated to the department in charge of tax affairs at DENTSU SOKEN, and when important business or risks related to the DENTSU SOKEN Group's tax affairs come to our attention, in addition to the officers concerned we report to the Management Council or the Board of Directors as necessary.
Tax Strategy
Of the "Group Tax Mission Statement and Strategy" established by the Dentsu Group, the Tax Strategy consists of three components: "Tax Compliance," "Tax Risk Management," and "Tax Optimization." The DENTSU SOKEN Group complies with the matters stipulated in each component and deals with the tax authorities of individual countries as follows.
(Quoted from the “Tax Compliance” portion of the Tax Strategy)
-
We will build honest and open working relationships with tax authorities by dealing with each country’s tax authority requests and providing appropriate information in a timely and transparent manner.
-
We want to agree on our tax liabilities with local tax authorities in a transparent, constructive and open way.
-
Where appropriate (depending on the jurisdiction), we will attempt to agree on any areas of uncertainty with tax authorities before submitting the relevant tax return.
-
In certain jurisdictions where it is appropriate and an accepted practice, we will help contribute to government consultations on tax matters within the context of shaping sustainable tax policies which are fair and balanced to all stakeholders.
In addition, we will take measures to prevent the recurrence of any matters for which it has received guidance from the tax authorities and will work to correct them.
Amount of Taxes Paid
Unit | FY2020 | FY2021 | FY2022 | FY2023 | |
---|---|---|---|---|---|
Japan |
Billions of yen | 2.7 | 4.0 | 5.5 | 5.5 |
|
% | 96.4 | 97.6 | 96.5 | 96.5 |
ex-Japan |
Billions of yen | 0.1 | 0.1 | 0.2 | 0.2 |
|
% | 3.6 | 2.4 | 3.5 | 3.5 |
Total |
Billions of yen | 2.8 | 4.1 | 5.7 | 5.7 |
|
% | 100.0 | 100.0 | 100.0 | 100.0 |
Approach to Procurement
Procurement Policy
DENTSU SOKEN Group is committed to working together with all our suppliers to achieve a sustainable society through engaging in procurement activities based on the following Procurement Policy.
-
1.DENTSU SOKEN Group shall provide opportunities for fair competition to a wide range of suppliers in Japan and overseas, and build mutual understanding and relationships based on trust.
-
2.DENTSU SOKEN Group shall comply with laws, regulations and social norms, engage in fair and equitable business activities and anti-corruption measures, and ensure procurement activities with consideration for human rights, labor, health and safety, the environment, information security, etc.
-
3.DENTSU SOKEN Group shall procure competitively priced products and services that meet business needs based on economic rationality by comprehensively making judgments on quality, safety, price, delivery time, and stable supply.
Procurement Guidelines
The DENTSU SOKEN Group Procurement Guidelines outline the matters we request our all suppliers to address in collaboration with DENTSU SOKEN Group as part of responsible corporate activities aimed at achieving a sustainable society. We have formulated the Guidelines with reference to the Responsible Business Alliance (RBA) “Code of Conduct,” the Japan Electronics and Information Technology Industries Association (JEITA)’s “Responsible Business Conduct Guidelines,” and others, in addition to DENTSU SOKEN Group's “Sustainability Policy” and “Procurement Policy.”
Green Purchasing
In a bid to protect the global environment, we have formulated Green Purchasing Guidelines. These require that priority be given to businesses striving to reduce environmental damage by using products and services that have a minimal footprint.
Scope
Items (general consumables, furniture and fixtures, etc.) purchased directly by DENTSU SOKEN.
Purchasing Policy
When purchasing products and services, we adhere to the guidelines, obtain the necessary environmental information, and choose what has the least environmental impact.
We prioritize green purchasing for large amounts and for transactions likely to have a major environmental impact.
Efforts to Strengthen Partnerships
Announcing the Partnership Building Declaration
DENTSU SOKEN endorses and announces its commitment to the Partnership Building Declaration promoted by the Future-focused Partnership Building Promotion Committee sponsored by the Cabinet Office, the Small and Medium Enterprise Agency and other organizations.
Endorsement of the Partnership Building Declaration indicates that a company will promote cooperation, coexistence and co-prosperity with business partners in the supply chain and businesses attempting to create value in order to build new partnerships.
-
Click here for the Partnership Building Declaration by DENTSU SOKEN (Japanese version only)