Obayashi Group Anti-Bribery Program
The Obayashi Group works to ensure strict compliance with corporate ethics based on the Obayashi Basic Principles. Bribery is prohibited and we have established the Obayashi Group Anti-bribery Program to prevent bribery of public officials and others, to ensure fair and free competition in accordance with the rules and in light of international trends. We believe that the risk of bribery is particularly high overseas, and perform due diligence on preventing bribery that is appropriate to the specific characteristics of the locale.
Policy
The Obayashi Group and its employees must not provide, offer, or promise, whether directly or through a third party, any money, financial advantage, or any other item of value with the intention of influencing any act by a public official or any other party in his or her official capacity with the aim of obtaining business in an inappropriate manner or seeking improper financial gain.
1. What constitutes "obtaining business in an inappropriate manner or seeking improper financial gain?"
- Improper acquisition of commercial transactions
- Improper acquisition of licenses and permits
- Obtaining confidential information by improper means
- Forbidding someone to speak about fraud or illicit acts
- Overlooking legal violations
- Avoidance or mitigation of penalties, etc.
2. Who is a "public official or related party?"
Public officials or other related party refer to officers and employees of organizations that are controlled by a government or government-run organization, in addition to all public officials and candidates for public office.
It is necessary to exercise care about encompassing a broader scope than envisioned in everyday language.
- Employees of governments, government ministries, and local government agencies, etc.
(E.g.: Council members, members of the military, law enforcement officers, fire fighters, tax inspectors, customs officials, etc.) - Officers and employees of government-affiliated companies or corporations
(E.g.: Government-run or quasi-public/quasi-private providers of public services such as electric, gas, and railways, national universities, government-affiliated hospitals, etc.) - Officers and employees of public international institutions (E.g.: United Nations (UN), World Trade Organization (WTO), etc.)
- Officers and employees of political parties
- Candidates for public office
- Persons who perform public services on behalf of those listed above (E.g.: Government-designated inspection agencies, testing facilities, etc.)
3. What constitutes "money, financial advantage, or any other item of value?"
- Gifts of cash, cash vouchers, gift certificates, merchandise, or real estate
- Wining and dining and entertainment (E.g.: Dinner meetings, banquets, sports events, golf outings, trips, etc.)
- Donations, contributions
- Honorariums
- Collateral and guarantees
- Provision of services(E.g.: Provision of staff) for free (or for a minimal amount), etc.
4. Response to Facilitation Payments
Facilitation payments are prohibited (this includes payment of small sums demanded by public officials or others for customs clearance, inspections, issuance or application of extensions for entry or resident visas, or water/sewer or phone line installation without the relevant legal grounds).
However, complying with payments may be permitted in exceptional circumstances when there is a risk to life, limb, or freedom (violence, threats, arrest, imprisonment, etc.). Such instances are handled by submitting a damage report to governmental authorities (Japanese embassy or other agency responsible for foreign diplomacy, local police or other law enforcement agency), so that the legitimacy of the payment can be established.
Control Activities
Conducting Training
Obayashi conducts internal training on corporate ethics, and training using specific cases and guidelines for officers and employees to ensure strict compliance with laws and regulations and Obayashi Group rules on bribery and corruption.
Proper Procedure and Record Maintenance
Payments to public officials and others are examined for legitimacy and made according to prescribed procedures to demonstrate compliance with laws and regulations and Obayashi Group rules on bribery and corruption. We also preserve accounting records and documentation of approval of ringi proposals and other matters.
Transactions with Appropriate Suppliers or Agents
We retain joint venture partners, suppliers, agents, and consultants that we can trust, and follow prescribed procedures in concluding agreements. Due diligence is performed on overseas activities according to the procedure designated by Obayashi, and consistent with the needs of the country or company implementing the project.
More specifically, we evaluate the risk level based on the financial soundness of the country, joint venture partner, agent, or other entity implementing the project by country of affiliation and the Corruption Perception Index. When the risk is determined to be high, we consider whether the entity in question has ever been convicted of corruption in the past, re-evaluate the transaction based on the appropriateness of the compensation for services, etc., and report this to the compliance officer and obtain approval. We also insist on inclusion of anti-bribery provisions in contracts or agreements with joint venture partners, suppliers, agents, consultants, and other entities.
Establishment of a Contact for Consultation
In addition to preventing acts that violate laws and regulations and Obayashi Group rules on bribery and corruption, we have established domestic and overseas hotlines for Obayashi and each of its Group companies to ensure early detection and correction of illicit activity. The hotlines confirm laws, regulations, and other rules, and establish guidelines based on compilation and analysis of examples of violations. Hotlines have been established in the main overseas regional headquarters and overseas offices.
Moreover, the Obayashi Corporate Ethics Committee (in Japan) or the Corporate Ethics Committee at an Obayashi overseas branch (for overseas) investigates reports to the corporate ethics reporting hotlines (Internal hotline: Secretariat of the Corporate Ethics Committee; External hotline: External law firm), inquiries from government, judicial, and other entities, and cases involving suspicions of bribery of public officials and others.
Steps Taken When A Violation Has Occurred
When a violation of this program occurs, the violator will be subject to severe punishment.
Monitoring
We regularly monitor and make improvements to this program.
Monitoring is performed by the Business Administration Department at the Obayashi Head Office. The Obayashi Corporate Ethics Committee also confirms the status of this program's initiatives and makes improvements once a year.