Glory strives to foster awareness of compliance Group wide and conduct honest and fair business activities.
Glory views legal compliance as an important management issue for the Group, and so we strive to maintain or improve our compliance framework. One measure taken in that regard is the establishment of the Compliance Committee.
The committee is chaired by the president, includes two outside experts (attorneys at law), and deliberates key compliance-related issues concerning the Glory Group. Matters deliberated are reported to the Board of Directors.
Also, a chief compliance officer is appointed from among the officers in charge. The committee’s secretariat takes charge of planning measures for thorough compliance as well as employee education and awareness activities.
Glory has set up four compliance helplines advised by (1) an immediate superior, (2) the Compliance Committee secretariat, (3) an office consultant, and (4) an external helpline (law firm) as a consultation service (helpline) for overall compliance issues of the Glory Group. The helplines were established to detect and correct issues at an early stage as well as to protect those seeking consultation under the Internal Regulations on Consultation.
In fiscal year 2019, 22 calls were received, and each consultation case was handled appropriately with an investigation of the facts and circumstances.
We established the Glory Legal Code of Conduct governing the laws and codes of ethics that must be adhered to by all Glory Group officers, employees, and business partners, including distributors, both domestic and overseas.
The code was developed from a global perspective to accommodate the rapid expansion of our overseas business. We strive to improve employee awareness of compliance through activities such as the distribution of the "Handbook" and training for every Group employee in order to continue to conduct honest and fair business worthy of the Glory brand and to maintain and ensure a high level of compliance and ethical standards. Moreover, additions and amendments to the code may be made after approval by the directors.
In fiscal year 2019, we confirmed that no serious noncompliance problems had occurred.
We have specified rules to prohibit bribery and prevent corruption in the Glory Legal Code of Conduct and endeavor to keep all domestic and overseas employees and business partners informed of them. We also conduct e-learning and other suitable means of education to prevent corrupt practices.
In fiscal year 2019, there were no occurrences of corrupt practices, including bribery.
(ⅲ) Bribery and Corruption
GLORY takes a zero-tolerance approach to bribery and corruption (and requires its business partners to do so as well). GLORY is committed to acting professionally, fairly and with integrity in all our business dealings and relationships wherever we operate and implementing and enforcing effective systems to counter bribery. GLORY upholds all laws relevant to countering bribery and corruption in all the jurisdictions in which we operate.
(ⅳ) Money Laundering
Money laundering is hiding the criminal origins of money or the proceeds of crime within legal businesses or business activities or using legitimate money to support terrorism. Most countries now have antimony laundering legislation which enables law enforcement agencies to trace and recover laundered money. Businesses may commit offences by using laundered money or concealing its nature or origin or tipping off the money launderer - i.e. disclosing anything likely to prejudice an investigation or prejudicing such investigation. In addition there are offences of failing to report a suspicion if there are reasonable grounds to know or suspect that a third party is laundering money through your organisation.
Furthermore, we have developed internal rules and conduct training to respond effectively to the EU General Data Protection Regulation (GDPR), which went into effect in May 2018.
We conduct comprehensive training, including at Group companies, to ensure thorough compliance. New employee education includes learning about fundamental legal and ethical issues as well as internal rules. In addition, we conduct e-learning every year during Corporate Ethics Month in October for all domestic Group employees to refresh their understanding of basic issues and social trends.
In fiscal year 2019, programs were conducted in areas such as the rules of confidential information protection, prevention of harassment, and regulations governing insider trading as stipulated in the Glory Legal Code of Conduct, with a combined total of 6,857 employees taking part in the various programs. Other programs include newly appointed manager training and specialized training to develop a more thorough and precise understanding of issues concerning laws and corporate ethics.
We encourage the creation of domestic and overseas inventions and acquire the relevant rights, make use of intellectual property rights, and take measures to avoid the risk of disputes by researching the rights of others, for the benefit of the Glory Group.
We conduct activities for intellectual property in alignment with business activities. For example, divisions involved in intellectual property, such as the business and development divisions and the Intellectual Property Department, regularly convene meetings to discuss the utilization of intellectual property and application strategies to gain an advantage in business promotions.
Meanwhile, we also engage in activities to extract ideas at each stage of planning and development to generate valid patents at an early stage. Once the applied patents are registered, the business and development divisions share details regarding rights and discuss how best to utilize them.
Furthermore, before making decisions for an M&A or business alliance, analysis is conducted from the perspective of patented technology by referring to patent publication bulletins that contain patent applications across the world. Information on the relative strengths and weakness of technology that the counterparty holds, and whether the technology offers a competitive advantage, is shared to support the Company’s pursuit of profitable businesses.
As of the end of fiscal year 2019, the Glory Group held a total of 2,173 patents, utility models, and designs (1,213 domestic and 960 overseas).
Level-based training is provided to the planning and development divisions to raise general awareness of intellectual property while qualification- and positionbased human resource development programs are offered to employees in the Intellectual Property Department. We established a strategy for raising the level of expertise through those programs, making it possible for the divisions involved as well as the Intellectual Property Department to foster human resources at appropriate levels.
Moreover, we have instituted an invention incentive system to provide compensation for outstanding inventions, especially those that have contributed to our business to boost the motivation of inventors.