The Company's Compliance/Risk Management Committee is charged with establishment and promotion of internal controls systems and with ensuring a thorough understanding of compliance with regard to internal rules and applicable laws and regulations in local committees through various means, including the Company's internal bulletin board and newsletters. It also receives periodic self-inspection reports from local committees and pursues various ongoing measures to strengthen compliance based on the results of these efforts.

Raising employee awareness of compliance issues

Since FY2010, the Company has published the Risk Management Bulletin (with the publication of its 340th issue as of the end of September 2023) to keep employees abreast of various compliance matters, alongside activities in which employees read these together in the workplace. The Risk Management Bulletin is also used as teaching materials in internal training.
In addition, we promote the use of the compliance promotion portal site (internal portal) and aim to further strengthen the governance system by improving employee compliance awareness.

Developing effective compliance systems

To promote risk management, the Company's Compliance/Risk Management Committee (at the head office) and its subsidiary local committees (organized in each branch office) carry out continual training with the goal of improving ethical standards within the organization and awareness of various risks. Monthly activities are based on Risk Management Periodic Inspection Records and Compliance Textbooks, as well as lessons gained from monitoring the response to risks and compliance training (mutual checks and balances), to ensure corporate management characterized by integrity.

The Group prohibits corrupt practices such as bribery, embezzlement, and bid-rigging. In the Charter of Corporate Behavior, we set forth Fair and Transparent Business Practices, and make clear statement such as "We do not collude in bidding." "We conduct transactions with clients on an equal footing, based on the contract agreed upon.” and the “Anti-Corruption Policy” formulated based on these ideas is applied to the officers and employees of the Group.
In addition, as well as confirming the risks related to bribery and corruption with officers and employees based on the compliance system, we are striving to penetrate the anti-corruption policy by distributing compliance texts and the Risk Management newsletter (internal newsletter) through the Company's portal site as content to translate the anti-corruption policy into individual actions.
The number of dispositions and dismissals of officers and employees due to violations of the anti-corruption policy in FY2022 was 0.

Please check our anti-corruption policy from the following URL.
https://www.kamigumi.co.jp/english/news/2023/000289.html

To maintain security in international logistics and help facilitate international trade, the Company has established various programs concerning compliance with applicable laws and regulations, as well as ensuring security and appropriate export/import customs clearance for international cargo. It maintains a management system based on these programs and goals.
In addition, as an authorized economic operator (AEO) recognized for outstanding compliance structure and security management, the Company was approved as a special bonded warehouse business in June 2011 and authorized as a certified customs clearance agent in January 2014.

The Kamigumi Corporate Ethics Helpline is as an internal whistleblower system designed to swiftly detect and prevent violations of laws and regulations, improprieties, and similar issues and to improve the Company's internal self-governing functions. The Compliance/Risk Management Committee and the Audit & Supervisory Board are responsible for reporting matters that violate the Company Articles of Incorporation and compliance rules such as compliance violations, harassment, and corruption, including bribery, and ensure the anonymity of whistleblowers and investigators when investigating reported matters. In FY2022, twelve incidents were reported under this system.
Also, in addition to employee training on the internal whistleblower system, to ensure that all employees are aware of the system, we put up posters in workplaces and, so that all officers and employees can use the system with peace of mind, made a guidebook, A.B.C. of the Kamigumi Group Corporate Ethics Helpline, and are working to see to it that the system is operated appropriately.

The Internal Audit Department, an independent organization under the direct supervision of the President & Representative Director, handles internal audits. These audits are the department's sole responsibility.
The Department prepares an audit plan for each fiscal year and audits various aspects of Company business operations, including accounting (to ensure reliability of financial reports) and asset management (to verify legal and regulatory compliance), as well as the effective function of internal controls systems needed to ensure the propriety of business operations at the head office and all branch offices.
Immediately after the audit, an audit report is prepared and submitted to those responsible for management. Follow-up activities address the current status of corrective measures for issues identified in the audit.

The Charter of Corporate Behavior explicitly calls for the Company to renounce any interactions with antisocial forces. The Company includes wording on exclusion of antisocial forces in various contracts and maintains internal systems to audit compliance with such provisions. The Company strives to help secure order and safety in civil society by advocating the principle of the “Three No's (no fear, no monetary payment, no use)” vis-a-vis antisocial forces and by ensuring thorough understanding and implementation of this principle throughout the Group.