Compliance

Compliance

Basic Approach

In order for the Heiwa Real Estate Group to earn the trust of society and achieve sustainable development, we will consistently maintain an awareness of compliance and conduct business in keeping with our Code of Conduct and the Standards for Behavior for Heiwa Real Estate Group.
To stamp out misconduct and further strengthen compliance, we also enacted the Announcement on Stamping Out Misconduct and Strengthening Compliance in December 2019, and are taking initiatives in keeping with this.

Compliance System

The Group has established a Risk Management Committee, a body for sharing, discussing, and controlling compliance and business risks in the Group. Serious violations of compliance or material emerging risks are reported to the Company's Board of Directors and handled accordingly.
The General Affairs Department, which serves as the secretariat for the committee, is responsible for coordinating with Group companies, and promotes improved compliance and risk management function across the entire Group.

Prevention of Corruption and Bribery

The Group has enacted the Code of Conduct and the Standards for Behavior for Heiwa Real Estate Group, and drafted a summary of matters to be complied with in order to act with fairness and honesty without violation of social norms. In keeping with these we maintain an awareness of the gravity of our social responsibility, strictly comply with all laws, regulations, and rules, and seek to be a company that has a strong sense of ethics and can keep the trust of society.
The Standards for Behavior for Heiwa Real Estate Group calls on us to strictly refrain from behavior that may seem like collusion from society's standpoint in our relationships with government and administrative bodies, prohibits entertainment, gifts, and other benefits deviating from social conventions, and concretely defines measures to prevent not only bribery, but corrupt behavior in general. These details are published to our intranet, and are available for employee viewing at any time.
We are also taking a number of actions to improve compliance awareness, such as holding at least five compliance training sessions each year for all officers and employees and thoroughly disseminating the contents of various compliance regulations, including those for the prevention of corruption and bribery.
Furthermore, based on our Internal Reporting Regulations, we have established a compliance hotline at the Company in order for us to rapidly be aware of organizational or individual misconduct or violations of laws and regulations and to take necessary measures in response. This system also promotes ethics and compliance with laws and regulations at Group companies.
To promote fair transactions with business partners such as corporations, we have also set up an external reporting desk to receive reports on compliance violations and suspected violations by officers and employees of the Group.

Compliance Hotline

Based on our Internal Reporting Regulations, the Group has established an internal compliance hotline in order for us to rapidly be aware of organizational or individual misconduct or violations of laws and regulations and to take necessary measures in response. This system also promotes ethics and compliance with laws and regulations at Group companies.
Reports may be made to internal or external desks. We protect those who provide us with reports, like ensuring that they are not penalized for their use of our compliance hotline.
To promote fair transactions with business partners such as corporations, we have also set up an external reporting desk to receive reports on compliance violations and suspected violations by officers and employees of the Group.

Compliance Training

The Group regularly conducts compliance training for the purpose of raising awareness of compliance among officers and employees. We are also working to spread awareness of compliance by conducting company-wide simultaneous inspections for compliance, information security, and other areas, and disseminating inspection results internally.

Combating Anti-Social Forces

1.Basic concept for excluding anti-social forces

We are strongly resolved to combat anti-social forces that threaten the order and security of civil society.

2.Status of measures to exclude anti-social forces

The Company has clearly established a number of policies showing its strong resolve to combat anti-social forces. These can be found in the Code of Conduct, the Standards for Behavior for Heiwa Real Estate Group, the Basic Policy for Building Internal Control Systems, and the Regulations for Exclusion of Anti-Social Forces. We thoroughly disseminate these policies to directors, executive officers, and employees.
The General Affairs Department serves as the controlling department for our internal systems in this area. In the event of unreasonable demands and other instances with anti-social forces, this department takes action in coordination with attorneys and related institutions, such as the police department with jurisdiction.
By joining the Tokubouren, a police-run association for the prevention of organized crime, we participate in activities to exclude anti-social forces and gather information, providing details to various departments as necessary.

Risk Management

Basic Approach

The Company has put a risk management system in place in order to properly manage and control risks, limit or prevent risks from materializing, and minimize any damage in the event such risks materialize, and smooth control work, minimize damages for corporate resource.

Risk Management System

To have an overall understanding of the Group's risks and appropriately take action in the event of their emergence, the Risk Management Committee meets quarterly, chaired by the Representative Director and President and comprised of executive officers and heads of department. At its meetings, the committee works to understand risks that have emerged within the Group and discusses matters such as how to prevent recurrence in keeping with the Risk Management Guidelines.
For the acquisition and sale of properties, the Investment Risk Working Group meets ahead of Board of Directors discussion, analyzing the risks associated with the acquisition or sale and reporting its findings to the Managing Officers' Meeting.
To mitigate the risk of a company crisis in the event of an emergency, we have drafted a business continuity plan and a manual based on this plan, and we conduct regular inspections in line with this.

Information Security

Basic Approach

The Group views the appropriate management of information risks as one of its most important information strategies. We formulated the following basic approach to implement information security throughout the Group.

1. Information Security Management System

The Group has established an information security management system and strives to protect and appropriately manage all information assets held by the Group.

2. Internal Rules Related to Information Security

The Group maintains internal rules based on this basic approach and ensures all officers and employees are thoroughly aware of these rules.

3. Information Security Training

The Group conducts ongoing training requisite to ensuring information security and attempts to improve information literacy among all officers and employees.

4. Information Security Countermeasures

The Group implements appropriate countermeasures for ensuring the safety of information assets and protecting against threats including unauthorized access, destruction, data leaks, spoofing, loss and theft.
Furthermore, in the event that information asset security is breached, we make every effort to minimize damage, quickly identify the cause and prevent future recurrence.

5. Compliance with Laws and Regulations

The Group complies with laws and regulations related to information security, guidance provided by the Japanese government and other social norms.

6. Continuous Improvements

The Group strives to continuously review and improve the abovementioned initiatives.