Compliance

Governance 　Governance and compliance to support businesses

Compliance

On March 18, 2014, the Japan Fair Trade Commission (JFTC) found that the MOL Group had violated Article 3 of the Japanese Antimonopoly Act in certain car carrier shipping trades. The MOL Group has taken measures to reinforce its compliance efforts, including reform of its corporate culture to ensure that the importance of compliance - as the major premise of all corporate activities - is etched deeply into the minds of all executives and employees.
The Compliance Committee, chaired by the Chief Compliance Officer, meets every three months to monitor our compliance.

MOL compliance structure
Initiatives on Compliance with the Antitrust Act
Initiatives on Anti-corruption
Political Contributions
Rules of Conduct

株式会社商船三井　環境・サステナビリティ戦略部　サステナビリティ統括チーム, 株式会社商船三井　経営企画部　総合企画チーム, 株式会社商船三井　コーポレートコミュニケーション部　コミュニケーション企画チーム, 株式会社商船三井　MBS コミュニケーションサポート部　MBS コミュニケーションサポート部, 人事部, 株式会社商船三井　海上安全部　海務チーム, 株式会社商船三井　海上安全部　安全推進チーム, 株式会社商船三井　海上安全部　船員政策チーム, 株式会社商船三井　海上安全部　船員教育・訓練チーム, 株式会社商船三井　海上安全部　安全運航支援センター, 株式会社商船三井　技術部　技術イノベーションチーム, 株式会社商船三井　スマートシッピング推進部　スマートシップ戦略チーム, 商船三井システムズ株式会社　ICT 戦略推進部　ICT 戦略推進第一チーム

MOL compliance structure

Compliance Committee

The Compliance Committee exists as a subordinate committee of the Executive Committee. Its goal is to reinforce and thoroughly apply the company-wide compliance system, and to determine disciplinary measures for violations. The Executive Officer responsible for compliance is appointed as the committee chairperson.

Chief Compliance Officer

The Chief Compliance Officer manages compliance officers, and takes responsibility for enhancing the compliance system. The Executive Officer responsible for compliance, who is appointed by the Board of Directors, serves as Chief Compliance Officer.

Compliance Officer

General Manager of divisions and branch offices serves as a Compliance Officer. The role of the Compliance Officer is to ensure that all employees of the division and branch office that he or she is responsible for adhere to all applicable laws, internal business regulations and relevant standard working procedures. When a breach of compliance is discovered, or when the Compliance Officer receives a report from an employee in his or her division and branch office, he or she is responsible for making the initial report to the Compliance Committee Secretariat, and then taking quick corrective action, maintaining the confidentiality of the person reporting the alleged breach.

Compliance Advisory Service Desk

MOL has established both internal and external compliance advisory service desks. Each desk are available 24 hours a day, seven days a week, and accepts reports and provides consultations in Japanese or English for MOL and MOL Group full-time personnel and temporary employees. Lawyers from outside the company serve the External Compliance Advisory Service Desk. They will report questions and issues to the Compliance Committee Office, and handle ongoing follow-up contacts between the whistleblower and the company. Anonymous reporting is allowed at any of these points of contact, and the confidentiality of the person reporting or consulting is strictly observed.It also guarantees that those who report or consult on violations or those who cooperate in investigations will not be treated disadvantageously.
The compliance advisory service desks is thoroughly communicated to all executives and employees of our company and Group companies through training and the company intranet. And the details of compliance violations are disclosed in the company intranet.
For those outside the groups such as business partners in Japan and overseas, please send your message/inquiry on compliance from here.

Compliance Enhancement Month

As a supplement to the Compliance Consultation Desk, the Compliance Enhancement Month is held for executives and employees of our company and Group companies. In order to identify potential problems and signs of problems as early as possible, and to take preventive measures, it is conducted every year from 2017, and it receives a wide range of information that shows signs of non-compliance for about 1 month. To date, our company and its group companies have received 49 consultations and reports, and in some cases were able to cope with problems before they developed into major problems.
Anonymous reporting is also possible, and the confidentiality of consultation and reporting persons is strictly observed, and disadvantageous treatment is guaranteed.

Breaches of compliance in MOL Group companies

MOL Group companies establish their own compliance structures to match the type and scale of their business operations. In case a breach of compliance occurs in a Group company, the relevant company follows its own internal rules and regulations to take immediate steps to prevent the breach of compliance from recurring. At the same time, MOL's Compliance Officer in charge of the relevant MOL Group company reports the breach to the Compliance Committee Secretariat without delay. It must also be reported to the Compliance Committee if it may affect MOL Group management. In addition, employees of MOL Group companies who discover a breach of compliance in an MOL Group company can also consult with MOL's Compliance Advisory Service Desk.

Initiatives on Compliance with the Antitrust Act

While investigating the cause of the Antitrust Act violations, it became apparent that we needed to revamp the MOL Group’s corporate culture. To analyze the group’s current corporate culture, we conduct a questionnaire survey of the employees.

As a result of the survey, we developed a program under which the division GMs will foster a corporate culture aimed at eliminating compliance violations. The program includes planning and executing improvement measures such as building awareness of compliance within the divisions under their management and monitoring achievements.

Initiatives on Anti-corruption

MOL established "Mitsui O.S.K. Lines' Anti-Corruption Policy in October 2015 to eliminate bribery and excessive business entertaining of public servants as well as those outside the government. That ensures that we "Build good relationships based on trust with clients and contractors," as stated in the Compliance Policy.

MOL also held a new session featuring an overview of anti-bribery laws and regulations in Japan and overseas for executives and employees.

MOL also held E-learning sessions about the Antitrust Act, Competition Act, and Anti-corruption (Anti-bribery) measures to provide distance learning targeting group companies in Japan and overseas. In FY2020, 6,129 employees took the E-learning session about the Antitrust Act and Competition Act, and 6,202 employees attended the Anti-corruption (Anti-bribery) session. We made the Antimonopoly Act course mandatory for all personnel assigned to a new career level, thus continually providing added programs for executives and employees every year.

E-learning Participation Rate (FY2020)

Antitrust Act or Competition Law	Anti-corruption (Anti-bribery)	Internal Control	ICT security Governance	Insider trading	Safety culture
95.7%	96.5%	91.6%	95.7%	96.0%	95.5%

* E-learning sessions about the Anti-monopoly Act or Competition law and Anti-corruption, and ICT security Governance were presented at MOL Group companies in Japan and overseas. Sessions on Internal Control and Information Security, insider trading, and Safety Culture were held only in Japan.

Political Contributions

Political contributions are made in compliance with the Political Funds Control Act and in accordance with appropriate internal procedures.
For actual results of political contributions, please refer to "Sustainability Data".

Rules of Conduct

Rules of Conduct
All company personnel must act within the following Rules of Conduct when carrying out their duties.

Observe laws and regulations while at all times exercising due caution as a good administrator.
- Observe the laws and regulations and the like of Japan and all other nations, and act in accordance with social standards and corporate ethics while at all times exercising due caution as a good administrator.
Respect human rights and refuse to permit discrimination and harassment.
- Respect every individual’s basic human rights; and do not discriminate based on ethnicity, faith, religion, nationality, age, sex, class, disability, and the like.
- Understand, appreciate, and value the diversity of cultures, customs, and so on, in every area and nation, and work to achieve harmony between them.
- Do not subject anyone to sexual harassment or make offensive sexual remarks and do not act or speak in a way that might be misunderstood as sexual harassment.
- Do not cause mental or physical suffering to anyone or act in a way that negatively affects the working environment by ignoring a person’s human rights or speaking or acting in a way that does not respect an individual’s human rights by using your position or authority in the workplace or exceeding the appropriate scope of your delegated authority.
Protect confidential information and respect intellectual property rights.
- Do not reveal confidential company information to a third party without permission and do not use such information improperly.
- Handle confidential information from third parties such as clients and contractors in the same way as you would handle the company’s confidential information.
- Do not buy or sell shares of the company or outside companies based on knowledge of important internal information of the company or other companies obtained in the course of carrying out duties until that information is officially announced, observing internal business regulations regarding the prevention of insider trading (Insider trading is prohibited).
- Do not use or obtain confidential information from third parties unjustly.
- Do not violate the intellectual property rights of third parties, for example, by copying or using computer software without authorization.
Clearly separate official and personal conduct, avoid conflicts of interest.
- Do not act against the company’s interests.
- Do not use company property or funds for any activities against the company’s interests.
Stand firm against antisocial forces.
- Take a stern and uncompromising attitude against antisocial forces and groups that may threaten public order and safety, and never take part in antisocial acts.
Act with awareness of social responsibilities.
- Endeavor to make a positive contribution towards realization of a better society as a good corporate citizen in international society and communities.
- Recognize the importance of transparency in management and properly disclose corporate information to promote understanding and trust among various stakeholders, remaining aware that the company is a member of society.
Actively work to ensure safe operations and protect the environment.
- Voluntarily and rigorously work to protect the marine and global environment, by fully enforcing safe operations of vessels, respecting environmental laws and regulations, and observing the MOL Group Environmental Policy Statement.
Build good relationships based on trust with clients and contractors.
- Strive to build strong, trusting business relationships and partnerships with honesty, fairness and transparency.
- Respect various laws and regulations in Japan, including antitrust laws and the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, as well as similar laws and regulations outside Japan, and observe the company’s Rules of Conduct Related to Antitrust Laws in order to maintain and promote free and fair competition.
- Do not give or accept money, expensive gifts, business entertainment, or economic benefits of an inappropriate value when dealing with representatives of contractors or other parties.
- Do not give, offer or promise bribes or illegal benefits in any relationship with public servants in Japan or overseas.
Provide guidance and supervision of these Rules of Conduct by individuals in management positions.
- Directors, executive officers and employees in management positions shall provide guidance and supervision to company personnel so that the Rules of Conduct are followed faithfully, and request observance of the Rules of Conduct to outsourcing companies which dispatch their employees to MOL Group Companies.
Report and consult on discovering suspected breaches.
- A company individual should report or consult with the Compliance Officer, Compliance Committee Officer, Internal Compliance Advisory Service Desk stipulated in Article 12, or External Compliance Advisory Service Desk stipulated in Article 13 without delay, if he or she learns of a breach or suspected breach of compliance; and not tacitly approve or cover up breaches by company personnel.
- Company personnel shall cooperate with investigations related to any alleged breach.
- The company strictly maintains the confidentiality of company personnel who report or consult about a breach and cooperate in related investigations and will ensure they are not subject to retribution and shall not be treated unfavorably.