Strengthening of Compliance

Fortifying Compliance

Companies around the world are being required to comply with increasingly strict regulations in all regions.
The Company's Compliance Committee convenes twice yearly to discuss and decide items related to major policies and maintaining systems to promote and enhance compliance.
The NYK Group has set September as the compliance-strengthening month during which it conducts comprehensive compliance checkups and provides opportunities for staff members* to review their conduct and work processes. One activity designed to raise employee awareness of compliance issues is a compliance survey that is distributed throughout the Company followed by several opportunities to provide feedback via the company's internal web bulletin board.

  • *Staff members including employees, secondees from other companies, and temporary staff.

The NYK Group's Compliance System

  1. *1For significant matters
  2. *2Reports to a full-time audit and supervisory board member periodically and as required
Main Measures Aimed at Strengthening Compliance
1997
  • Established NYK Business Credo
1999
  • Established NYK Code of Conduct
2002
  • Established position of Chief Compliance Officer
2005
  • Established NYK Group Mission Statement
2006
  • Established Internal Control Committee
2008
  • Established Antitrust Law Task Force
2013
  • Established Executive Committee Overseeing Thorough Antitrust Law Compliance
2016
  • Introduced measures to prevent bribery of overseas public officials when establishing new business
  • Revised the NYK Code of Conduct
2017
  • Implemented a written pledge of adherence to the NYK Code of Conduct

List of Training for Enhanced Compliance

The Group strives to improve awareness regarding compliance, antitrust laws, and the prohibition of bribery, among others, through group training and e-learning.

Status of Training in Fiscal 2018 Number of programs Number of participants
Training on compliance*1 17 546
Training on antitrust law and the prohibition of bribery, etc.*2 255 3,921
e-learning for the above
(Japanese/English/Chinese)
1 6,191
  1. *1Since fiscal 2002, we have held 425 training sessions with 11,935 participants.
  2. *2The Company has held 16 training sessions for domestic group companies (112 companies in 31 countries) and holds one session at least every 18 months in each region overseas. Since the program started in 2009, the program has had some 36,240 participants.

Whistleblower System

The Company provides several consultation services for employees to discuss concerns about or report workplace misconduct, harassment, and non-compliance activity, including the Yusen Chat Room providing connections to other employees and outside lawyers and a telephone consultation line operated by outside contractors. The Yusen Chat Room is available to roughly 60 Group companies in Japan and provides connections to six personnel, including an outside lawyer, available specifically to listen to a wide range of compliance matters and provide consultation, reporting, and whistleblowing on the matters.
Every effort is made to ensure the person contacting the service incurs no adverse consequences and, if desired, the contact remains completely confidential with the objective that the information provided will help improve the work environment. Group companies overseas also contract with outside entities to provide internal reporting contact points at business sites in each region to support reporting and open discussion by directors and employees.

Complying with Antitrust Laws

In the shipping industry, which is subject to the principle of the freedom of shipping (free navigation in international waters and innocent passage in territorial waters), anyone is free to enter or leave the market, which means that it is easy for competition to intensify. In order to reduce the negative aspects caused by this, such as interruptions to the stable shipping network and loss of competitiveness in the shipping/industry of emerging countries, the industry has historically been exempted from the scope of antitrust laws under certain conditions.
With these legal protections diminishing in recent times, it has become common for shipping companies to cooperate through vessel sharing agreements and slot exchanges in order to fulfill our responsibility as infrastructure, maintain and improve diverse navigation networks, and manage the frequencies of port stops, and the industry naturally involves many opportunities for making contact with competitor companies.
Since September 2012, the Group has been subject to investigation by overseas authorities for allegedly violating antitrust laws regarding the shipping of automobiles and other cargoes. The Company and some overseas group companies are also subject to a class action damage compensation suit in the U.S. and other regions.
We offer all of our stakeholders a sincere apology for all the concerns that we have caused.
We previously implemented various measures such as a declaration by the president regarding thorough compliance with antitrust law, the building and operation of a control network spanning the entire Group inside Japan and overseas, internal awareness building and education through training and manuals on antitrust law, and rules on contact with other companies in the same industry, but we need to sincerely accept the fact that this situation occurred and promote the building and operation of a new system for ensuring compliance with antitrust law in order to raise the awareness of each employee and corporate officer within the Group.

  • *Employees include company employees, personnel dispatched to other companies, and temporary staff
Measures for preventing reoccurrence (continued from 2013)
  • Holding meetings of the Executive Committee Overseeing Thorough Antitrust and Anti-bribery Law Compliance (twice a year)

    Biannual Meetings of the Legal Compliance Activity Committee (Fiscal 2018: September 2018 meeting attended by 105 members, March 2019 meeting attended by 110 members)

  • Formulating guidelines and conducting risk assessments of all the operational departments including group companies in Japan and overseas
  • Reviewing new investment projects by in-house lawyers, etc.
  • Obtaining written oaths regarding antitrust laws and competition law compliance
  • Adopting an application system for each officer and employee at the headquarters to participate in industry gatherings

Thorough Prohibition of Bribery

In January 2014, we further developed our basic policy and guidelines on the prohibition of bribery and rigorously informed the Group employees about them, in response to the Unfair Competition Prevention Act (crime of bribing foreign public officials) in Japan, the Foreign Corrupt Practices Act in the U.S., and the Bribery Act 2010 in the U.K. In fiscal 2013, we began training for staff members in Japan and overseas to spread the information throughout the Group. We strive to thoroughly familiarize everyone about the prohibition of bribery through a program in conjunction with antitrust law training, conducted at each level, eight times each year for the Group companies in Japan, and once each year for each overseas region.

Exercising Due Diligence Regarding Bribery

In April 2016, we established a system under which legal departments confirm matters related to bribery when the launch of new business in a high-risk country is being considered. In addition to screening partner and agency candidates for bribery-related problems, suggestions regarding incorporation of clauses related to the prohibition of bribery when concluding contracts are provided and relevant matters are confirmed.

Legal consultation system

When considering new investment and the launch of new businesses, our legal department implements risk management via screening and due diligence in order to conduct checks regarding antitrust laws, bribery, and economic sanctions.

Certification from anti-bribery business organization

The Group has received below certification from TRACE International, a globally recognized anti-bribery business organization and leading provider of third-party risk management solutions.

"TRACE has completed a TRACE certification due diligence review of Nippon Yusen Kabushiki Kaisha. Certification by TRACE signifies that Nippon Yusen Kabushiki Kaisha has completed internationally accepted due diligence procedures and has been forthcoming and cooperative during the review process. TRACE certification underscores Nippon Yusen Kabushiki Kaisha's commitment to transparency in international commercial transactions.

TRACE certification ID: TC3182-6961 (Valid through: 2020/1/15~2021/1/14)

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Political Contributions

As part of its lobbying activities, NYK makes political contributions that comply with the political funds control law, are based on company performance, and are made in accordance with proper internal procedure.
Also, to remain socially responsible and expand business value, we carefully review our lobbying activities and make contributions at amounts considered acceptable.