Governance

Rigorous Compliance and Thorough Corruption Prevention

Basic Policy on Compliance

Compliance is the heart of corporate social responsibility (CSR). As a corporate Group that provides products and services related to health and life to people around the world, the Eiken Group has a special duty to adhere rigorously to the law in its activities and maintain the highest standards of corporate ethics. Every Eiken Group employee is mindful of this duty, recognizes the Group’s mission and, guided by the Eiken Group Global Code of Conduct, earns the trust of medical practitioners and the general public through responsible and ethical behavior.

Based on the compliance policy, Eiken Chemical has drafted the Eiken Group Compliance Regulations. To provide a mechanism for promoting compliance, the Group has established a Risk Management and Compliance Committee. This body promotes corporate ethics and compliance and continuously assesses and manages risk. In addition, Eiken Chemical has created contact points for whistleblower reports, where employees can report irregularities and consult about compliance issues. External reports and requests for consultation are received through the Company’s “Contact Us” page.

Compliance Policy

Due to our involvement with life and the provision of products and services for protecting the health of people all over the world, the Eiken Group strives to achieve fair and appropriate management and maintain harmony with societal demands through the implementation of compliance activities.

1We maintain awareness of the societal demands on the Group as a whole and strive to achieve harmony with sound and stable management. We establish a compliance system for handling societal demands which guides our actions.

2Each and every employee obeys the laws and regulations as a matter of course. In addition, they take action with sincerity based on the ethics and values required of them as members of society and company workers. These actions are essential not only for maximizing value for shareholders but also minimizing management risks, and all employees have sufficient awareness of this, which drives the sincerity of their actions.

3To ensure permeation of strong ethical standards to live up to expectations of not only customers and clients but also society as a whole, we establish a code of conduct and internal regulations, conduct continuous training, and plan and implement compliance activities such as auditing and improvement.

Compliance Structure

The Eiken Group promulgates two codes of behavior for action based on social norms: the Eiken Group Global Code of Conduct and the Eiken Group Compliance Regulations. Based on these codes of behavior, the Group establishes a Risk Management and Compliance Committee, as well as Risk Management and Compliance Promotion Committees in each workplace, which serve as executive bodies subordinate to the Committee. Through these codes of behavior and organizational bodies, the Eiken Group advances corporate ethics and compliance. In addition, the Group’s compliance and effectiveness are continuously monitored through audits by the Internal Audit Department and Joint Audit Conference.

Contact Points for Whistleblower Reports

To ensure rigorous compliance, Eiken Chemical has established contact points for whistleblower reports both within and outside the Company. The Company operates the contact points in accordance with the Whistleblower Regulations.

Competitive Fund (Public Research Fund) Basic Policy for Fraud Prevention

Based on the “Guidelines for management and auditing of public research funds at research institutions (enforcement standards)” (established by the Minister of Education, Culture, Sports, Science and Technology on February 15, 2007; revised February 18, 2014), our basic policy for the appropriate use and management of competitive funds (public research funds) is defined as follows.

  1. Compliance with laws, ordinances, and guidelines

    We comply with all related laws, ordinances, and guidelines for the usage of public research funds.

  2. Clarification of the system of responsibility

    Supervisors are appointed to take responsibility for ensuring public research funds are used and managed appropriately.

    • Chief Management Officer: President and CEO
    • General Management Officer: Research and Development Unification Department General Manager
    • Compliance Promotion Officer: Executive Officer responsible for research and development
    • Deputy Compliance Promotion Officer: Manager responsible for research and development
  3. Maintenance of usage rules

    Regulations related to the usage and management of public research funds are established and made common knowledge among all employees engaged in public research fund usage and management activities.

  4. Usage of indirect expenses

    Based on the “Common guidelines for the enforcement of competitive fund indirect expenses” (arrangement of the relevant ministries related to competitive funds; revised May 29, 2014), we handle indirect expenses in an effective, efficient, and smooth manner.

  5. Fraud prevention plan determination and implementation

    We maintain an understanding of possible causes for fraud, determine plans for prevention, and implement them.

  6. Consultation and reporting desk

    We set up a consultation and reporting desk for issues related to fraudulent use of public research funds and improper research activities.

  7. Monitoring

    We set up a consultation and reporting desk for issues related to fraudulent use of public research funds and improper research activities.

January 1, 2018

Transparency in Relationships with Medical Institutions

Basic policy on transparency of the relationship between Eiken Chemical and medical institutions

Transactions based on a high level of ethics are required at every stage of EIKEN’s operations as the number of opportunities for collaboration with medical institutions and medical professionals is increasing.

EIKEN which are members of the Japan Association of Clinical Reagents Industries, concur with the philosophy outlined in the associationʼs “Guidelines on Transparency of Relationships between Corporate Activities and Medical Institutions”, and disclose information related to funding provided to such institutions.(Japan only)

The Japan Association of Clinical Reagents Industries' “Guidelines on Transparency of Relationships between Corporate Activities and Medical Institutions”. (Japanese only)(Oct. 1st, 2017)(925KB)

Research Ethics

Under the our management philosophy of "Protecting people's health through health care," we promote research and development of many clinical diagnostics and devices. Clinical research is reviewed and approved by our research ethics review committee from an ethical and scientific perspective.

Exclusion of Relationships with Antisocial Forces and Organizations

Eiken Chemical is resolute in its attitude, taking a firm stand against antisocial forces and organizations. Our fundamental beliefs on this matter are defined in the “Eiken Group Global Code of Conduct,” and our directors, executive officers, and all employees maintain thorough compliance with this code. In addition, we have established a division for handling issues related to antisocial forces and organizations, maintain strong cooperation with outside experts such as police and lawyers, and carry out appropriate organizational handling measures.

Basic Approach to Preventing Corruption

Based on the management philosophy that the Eiken Group “protects the health of the public through health care services,” the Eiken Group has established the “Eiken Group Global Code of Conduct," which indicates the actions that all of executives, employees and others should take to contribute to society by providing products and services that protect the health and life of people around the world. In the "Eiken Group Global Code of Conduct," we stipulate that all employees and others working in the Eiken Group conduct themselves honestly and responsibly based on the correct ethics.

In Japan and in all countries and regions where we operate business, we have established this policy as a guideline to further promote business activities based on the Eiken Group Code of Conduct and to fulfill the social responsibilities of the Eiken Group.

Anti-Bribery Policy

Compliance with laws and regulations

All employees and others of the Eiken Group comply with the anti-bribery laws and regulations of all countries and regions applicable to the Eiken Group.

Prohibited acts

No employee and others of the Eiken Group, both at home and abroad, engage in any of the following acts. Furthermore, we do not and will not engage in or tolerate the following acts through third parties such as consultants, agents, or distributors who have business relationships with the Eiken Group.

1Bribery

1) Providing, promising or offering financial or other benefits directly or indirectly to public officials, and the like with the intention of influencing their professional conduct (including facilitation payment, but excluding cases where the safety of employees and others or a third party with an interest in the Eiken Group is threatened or at risk)

2) Providing, promising or offering financial or other benefits directly or indirectly to an officer or employee of another business operator (whether a legal or natural person) with the intention of causing the officer or employee to engage in illegal or unjustifiable acts for the purpose of obtaining or maintaining business advantages.

2Acceptance of bribes (acceptance of undue profits, and the like)

Soliciting, promising to receive, or accepting financial or other benefits from other business operators or public officials, and the like, whether both at home and abroad, as compensation for the provision of business advantages.

Thorough recording and management

The Eiken Group records all transactions in its accounting books in a timely and accurate manner in accordance with internal regulations, and properly keeps relevant materials.

Education and training

The Eiken Group provides all employees and others with appropriate anti-bribery education and training.

Development of a system

The Eiken Group establishes and maintains an anti-bribery management system to ensure that this policy is properly complied with by all employees and others of the Eiken Group. Furthermore, we regularly assess bribery risks in the Eiken Group and continuously improve our anti-bribery management system.

Response to third parties

The Eiken Group also asks for the understanding and cooperation to this policy of third parties such as consultants, agents and distributors in business relationships.

Response to violations

If the Eiken Group discovers any conduct that violates or is likely to violate this policy, it will conduct a rigorous investigation and take strict measures in accordance with internal regulations.

Definition of terms

(1) “Employees and others" refers to all people who work at the Eiken Group, including executives, full-time employees, seconded employees, dispatched employees, part-time employees, and others

(2) The term "public officials, and the like" refers to domestic public officials, foreign and other public officials, persons engaged in the official business of international organizations, and officers and employees, and others of companies that are substantially controlled by the government or local public organizations in Japan or abroad.

(3) "Facilitation payment" refers to a small payment of money paid to a public official, and the like to facilitate or expedite a process of routine administrative services.

Formulated: April 1, 2022
President and CEO
Eiken Chemical Co., Ltd.

Compliance Systems

The Eiken Group’s Legal Division strictly complies with this policy and provides appropriate training on prevention of bribery. The Group also regularly assesses corruption risk within itself and continuously improves its systems for management of bribery prevention.

Thorough Prevention of Corruption

The Eiken Group asks all third parties with whom it does business, including consultants, agents and sales outlets, to understand and cooperate with this policy.

  Results for FY2021 Target for FY2024 Target for 2030
Rate of completion of requested measures 90% 100%

Training and Monitoring Based on Compliance Programs

  Results for FY2021 Target for FY2024 Target for FY2030
Training attendance rate(Average of all training programs) 100% 100% 100%
Number of serious noncompliance incident 1 0 0 0

1 Total of major violations in each country of competition law, laws and regulations on bribery  and other socioeconomic laws and regulations