Securities Code:8840

Compliance and Risk Management

This section provides our compliance and risk management.


Adherence to legal and ethical rules is the most fundamental social responsibility bestowed on a company.

Compliance System

Daikyo established its Compliance Office in June 2002 and set up the Compliance Consultation System across the entire group in November 2002 in an effort to prevent legal violations and the like before they occur. Seeking to provide a compliance framework to address the enactment of the Personal Information Protection Law, in February 2005 we integrated and broadened the functions of the Compliance Office, transforming it into the Compliance Department. (In June 2005, we reorganized it again into the Compliance Control Department in line with our shift to a “Company with Committees” system.) In these ways, we have sought to promote a compliance system by improving our instructional and oversight capabilities.
In April 2006, we integrated the administrative departments of Daikyo Kanri Incorporated (now Daikyo Astage Incorporated) and Daikyo Jutaku Ryutsu Incorporated (now Daikyo Anabuki Real Estate Incorporated). At the same time, seeking to expand and reinforce our compliance capabilities as a Group, we reorganized the Compliance Control Department into the Group Audit Department, Group Compliance Department, and Group Legal Department and clarified the specialized functions of each. To address the enactment of Japan's Financial Instruments and Exchange Act (based on the Sarbanes–Oxley Act in the United States), in April 2008 we reorganized the Group Compliance Department into the Group Internal Control Promotion Department in an effort to establish an effective Groupwide internal control framework.
In April 2012, we reorganized the Group Internal Control Promotion Department into the Group Internal Control Department to enable more stable promotion and operation of internal control and compliance systems. In 2013, we reorganized it again into the Group Legal and Compliance Department to more clearly illustrate its organizational role.
At the Daikyo Group, the meaning of “compliance” extends beyond “legal compliance.” Accordingly, we have classified “compliance” into the following four action levels that are essential to economic activity while maintaining social order.

Daikyo Group Compliance Actions

  1. Actions conforming to general social norms and rules
  2. Actions complying with laws and the like (legal frameworks)
  3. Actions conforming to internal rules (in-house regulations, manuals, etc.)
  4. Actions that reflect our corporate philosophy

Basic Management Policies

Practicing Customer Value Management
In addition to improving customer satisfaction levels, we practice customer value management by deepening interactions across the Group.

Earnings Power
We will maximize corporate value by improving foresight and stabilizing earnings.

Recognizing our corporate social responsibilities, we will continue contributing to society as a company in which each and every employee strives to behave sincerely and correctly.

With an emphasis on communication, we will integrate and share expertise across the Group and its departments to achieve sustained Groupwide growth.

Basic Policy on Eliminating Antisocial Forces

The Daikyo Group regards compliance as one of its most important priorities. As a socially responsible entity, we resolutely reject any involvement with antisocial forces and will sever transactions and all other ties with such forces. At the same time, we will not respond to unjust, unreasonable demands or engage in back-door transactions or funding. At all times, we will act in a methodical, legal manner in cooperation with specialized external parties, including the police, the Metropolitan Police Department's Special Violence Prevention Association, the National Center for Removal of Criminal Organizations, and attorneys.

Compliance Education

As outlined in its management policy on compliance, the Daikyo Group provides compliance education for its executives and employees in line with its corporate social responsibilities. We work to spread compliance-oriented awareness in various ways. These include holding seminars with outside lecturers, preparing compliance manuals for distribution to all Group employees, using e-learning to verify employees' compliance understanding levels, and introducing compliance-related case studies via our intranet.
Going forward, we will continue such educational initiatives as appropriate so that each and every employee understands social rules and always pursues his/her job duties with a compliance-driven mindset. In these ways, we will fulfill our corporate social responsibilities and foster sounder, fairer corporate activities.

Training scene for executives

Training scene for executives

Risk Management System

Daikyo classifies its operational risks into several categories, including business strategy risk and market risk. Our Group Legal and Compliance Department supervises the management of risk through reports and monitoring by various risk-related jurisdictions. It also conveys information about its risk management activities to the president and Audit Committee on a regular basis, and more often as necessary, and makes proposals on improvements and the like.

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