Strengthening of Compliance

Compliance Initiatives

NYK has established the Compliance Committee, which convenes twice yearly to discuss and decide items regarding major policies and the maintenance of a system for promoting and enhancing compliance.
Also, we have set September as the Group's compliance-strengthening month and conduct comprehensive compliance checkup activities during this period as an opportunity for staff members* to review their own behavior and work processes.

  • *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
  • Established NYK Business Credo
  • Established NYK Code of Conduct
  • Established position of Chief Compliance Officer
  • Established NYK Group Mission Statement
  • Established Internal Control Committee
  • Established Antitrust Law Task Force
  • Established Executive Committee Overseeing Thorough Antitrust Law Compliance
  • Introduced measures to prevent bribery of overseas public officials when establishing new business
  • Revised the NYK Code of Conduct
  • 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 2017 Number of sessions Number of participants
Training on compliance*1 9 270
Training on antitrust law and the prohibition of bribery, etc.*2 377 6,415
e-learning for the above
1 7,737
  1. *1Since fiscal 2002, we have held 367 training sessions, and a total of 10,007 people have participated. (Since fiscal 2016, we have data only on participants in training programs held at the headquarters.)
  2. *2Conducted 10 times in Japan and once a year for each overseas region, for group companies both inside and outside Japan (33 countries and 127 companies). Total 32,319 participants since 2009.

Whistleblower System

In addition to helplines operated by external consultation companies, NYK has the Yusen Chat Room, an ethics and compliance hotline for reports and consultations of improper employee conduct, harassment, unlawful behavior, and the like in business activities. The system protects whistleblowers and guarantees confidentiality and anonymity of the reports and consultations, and allows the company to prevent or correct problems and quickly take appropriate remedial action. For overseas offices, regional headquarters have contracts with external consultation companies operating whistleblower systems that allow employees to consult with the external companies directly.

In fiscal 2017, the total number of whistleblower reports received at the helplines was 40.

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.

Measures for preventing reoccurrence (continued from 2013)
  • Holding meetings of the Executive Committee Overseeing Thorough Antitrust and Anti-bribery Law Compliance (twice a year)

    This committee is chaired by the president, and meetings are attended by corporate officers, general managers of departments, outside directors, outside auditors and supervisory board members, and outside lawyers (held in September (attended by 111 members) and March (attended by 107 members) in fiscal 2017).

  • 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: 2019/1/15~2020/1/14)

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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.