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 FY2022.

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 FY2022.

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.

System structure

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

Japan

Billions of yen 2.7 4.0 5.5

 

% 96.4 97.6 96.5

ex-Japan

Billions of yen 0.1 0.1 0.2

 

% 3.6 2.4 3.5

Total

Billions of yen 2.8 4.1 5.7

 

% 100.0 100.0 100.0

Approach to Procurement

In order to provide safe, secure, and high-quality products and services that are of value to our clients, DENTSU SOKEN has formulated Partner Transaction Guidelines. According to these, we engage in open and fair transactions with outsourcers, suppliers, and other partners. Our contracts comply with the Subcontract Act, the Worker Dispatching Act, as well as relevant information security measures.

Procurement Policy

  • 1.
    DENTSU SOKEN strives to provide a wide range of domestic and overseas suppliers with opportunities for fair competition, and to build mutual understanding and relationships of trust.
  • 2.
    We judge quality, price, delivery date, stable supply, as well as the procurement of competitive products and services that meet business needs, all based on the principle of economic rationality.
  • 3.
    We ensure that we contribute to society through the items we procure, thus reflecting our consideration for the environment and human rights, as we comply with relevant laws and social norms.

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.

Green Purchasing

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.

Partnership
  •  
    Click herePDF for the Partnership Building Declaration by DENTSU SOKEN (Japanese version only)