Governance Report

Compliance

All employees at the LINTEC Group are committed to disciplining themselves based on the Company motto of “Sincerity and Creativity.” “Compliance self-check sheet” and “compliance training materials” are published in the LINTEC intranet. All employees use these materials for checking their conduct and conducting compliance learning activities in their departments.
For officers and manages, risk identification checks are conducted.

Global Surveys on Human Rights and Labor Standards

The LINTEC Group conducts a survey once a year to monitor working conditions and human rights.
The survey covers a wide range of items, including legal compliance, elimination of discrimination, respect for human rights, underage employee prohibited, prohibition of forced labor, wages, working hours, dialogue and negotiation with employees, safe and healthy working environments, and human resource development and other items.
As a result of the survey in February 2023, it was confirmed that all sites comply with local and regional laws and regulations, that the LINTEC Group Compliance Guidelines are well understood by employees, and that LINTEC employees work in a healthy and safe working environment where their fundamental human rights are respected. We will continue this regular survey every year to understand our current conditions, and improve them.

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Compliance with the Antitrust Law & Prevention of Corruption

In 2013, the LINTEC Group created an Antitrust Law Compliance Manual, copies of which were handed out to employees at sales divisions. The Group also provided relevant guidance to salespersons during legal training sessions, specifically referring to reported cases of violations at other companies involving cartel formation and resale price maintenance agreements.
In December 2019, we published a Manual for Compliance with the Antitrust Law and the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, which is a completely revised version of the aforementioned manual. The new manual was distributed to managers, including those of Group companies.
Moreover, in March 2020, we compiled a List of Do’s and Don’ts, which illustrates potential legal risks existing in everyday duties.
The Group also works to prevent bribery and corruption, incorporating the topic into the Compliance Guidelines, a booklet distributed to employees to raise their compliance awareness.

Issuing Legal Newsletter

The LINTEC Group issued Legal News (Vol.46-51) from April 2022 to March 2023 to provide legal information to employees. We also conduct e-learning (once a year) to ensure that the content of legal news becomes firmly established.

Legal News Issued in Fiscal 2022

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Issuance No. Title
May 2022 46 Recent violation cases related to the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade
August 2022 47 Amendment of the Whistleblower Protection Act and revision of our whistleblowing system
December 2022 48 What is the Invoice System?
December 2022 49 Activities that require attention in relation to the introduction of the Invoice System (Risks from the perspectives of the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors and the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade)
January 2023 50 If a former employee asks me to send him/her internal documents, is it okay to send them?
March 2023 51 Summary of news from April 2022 to March 2023

Awareness Raising with the Compliance Guidelines

The LINTEC Group has published a small booklet on the Compliance Guidelines, which describes employees’ code of conduct. To ensure that our overseas employees can act with the same awareness, we have translated the booklet into six languages★1 in addition to the Japanese version and distributed it to all employees. Furthermore, we conduct CSR study sessions using the Compliance Guidelines.

CSR Study Sessions Conducted in Fiscal 2022

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Target Number of participants
LINTEC CORPORATION 2,707 employees
(Including the session held at the Ina Technology Center in March 2022)
Group companies in Japan★2 7 companies / 363 employees
(Including the session held at LINTEC CUSTOMER SERVICE, INC. in March 2022)
  • ★1Six languages: English, Chinese (simplified and traditional characters), Korean, Thai, Malay, and Indonesian.
  • ★2Group companies in Japan: LINTEC COMMERCE, INC.; LINTEC SIGN SYSTEM, INC.; SHONAN LINTEC KAKO, INC.; LINTEC SERVICES, INC.; LINTEC CUSTOMER SERVICE, INC.; PRINTEC, INC. (currently the Printec Division of LINTEC SIGN SYSTEM, INC.); and TOKYO LINTEC KAKO, INC.

Fostering Sense of Ethics

“Rinri Kawaraban”, which started in fiscal 2006, is an intranet ethics news column featuring senryu (short haiku-like poems) with an additional explanation to familiarize employees with standards for ethics and conduct. The poems are compiled into a biennial booklet, “Rinri Kawaraban Mamotte Masuka?” which is not only used internally but also introduced to suppliers and customers.

In March 2023, we published the booklet “Rinri Kawaraban Mamotte Masuka?” Vol. 13 and distributed it to all Group employees in Japan. We issue this booklet, which features the third generation “etiquette patrol dog” character, Mebuki, under the concept of making corporate ethics easier to understand and practice.

Tax Compliance

Based on the spirit of the company motto, “Sincerity and Creativity,” the LINTEC Group properly pays taxes in compliance with the laws and regulations stipulated by the countries or regions where its business sites are located, or by the countries or regions concerned. To practice the proper performance of accounting procedures, which form the basis of appropriate tax payments, we have distributed the Compliance Guidelines (published in seven languages) to all Group employees, in order to raise their awareness and ensure that our daily transactions are carried out in a proper and lawful manner.
We do not conduct transactions that are not related to our core business but intended solely for tax reduction. In cases of uncertainty over the interpretation of tax laws, we seek the advice of external professionals.
If doubts remain, we seek prior consultation with the tax authorities concerned to ensure that we can pay taxes appropriately.
With regard to transactions between Group companies in two or more countries, we strive to appropriately distribute profits between the countries or regions where these companies operate, so as to mitigate transfer pricing tax risks.