Violations of a Wide Range of Laws, Regulations and Compliance Requirements
First written in FY2016. 3 of 5 entries say "Materialised", first in FY2020-Q1. Latest entry: FY2022.
Daiwa House Industry moved to the "Worse" side of this theme in 2019, 7 years before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 5 of 17 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「In December 2021, the company received a 22-day suspension of operations as an administrative sanction for the "practical experience deficiencies in the technical certification examination for construction management engineers" discovered in fiscal 2019, reaffirming the importance of compliance with the law. Taking these issues as lessons, it has thoroughly strengthened Group governance and intends to continue strengthening and enhancing its governance framework.」
While reaffirming the occurrence of an administrative sanction, the company continues to strengthen Group governance and prevent recurrence based on the lessons learned from the issue. - FY2022-Q3MaterialisedAnnual report
「Regarding this matter, on 17 November 2021, the Kinki Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism issued an administrative order under Article 28, paragraph 1 of the Construction Business Act and an order suspending operations in the electrical and plumbing construction businesses under paragraph 3 of the same article, for 22 days from 2 December 2021. The company has already been working to fully implement the measures to prevent recurrence announced in December 2019, and takes the latest orders seriously while continuing its company-wide efforts to restore trust.」
Regarding the issue of inadequate practical experience among construction management engineers, the company received an administrative order and a 22-day suspension of operations from the Ministry of Land, Infrastructure, Transport and Tourism, and continues efforts to prevent recurrence and restore trust. - FY2020MaterialisedAnnual report
「Regarding the matter announced in December 2019, titled "Inadequate Practical Experience in the Technical Certification Examination for Construction Management Engineers," the company established an external investigation committee in January 2020 and conducted an investigation into the facts and an analysis of the causes. In April, it received the committee's investigation report and reported the matter to the Ministry of Land, Infrastructure, Transport and Tourism.」
Regarding the risk of legal and compliance violations, inadequate practical experience among construction management engineers materialized as an actual issue, leading to a report by the external investigation committee and a report to the Ministry of Land, Infrastructure, Transport and Tourism. - FY2020-Q1MaterialisedAnnual report
「Regarding misconduct at a Chinese affiliate and issues including nonconformity with building standards for detached houses and rental apartment buildings, the company has received reports from third-party and external investigation committees, respectively. It is currently working to formulate and steadily implement measures to prevent recurrence, while also reorganizing the governance framework across the Group.」
The previously identified risk of legal and compliance violations materialized as misconduct at a Chinese affiliate and nonconformity with building standards for housing, leading to the receipt of investigation reports and the implementation of measures to prevent recurrence. - FY2016First statedAnnual report
「The company is taking steps through training and other measures to ensure that its officers and employees comply with these laws and regulations and other applicable requirements. However, if these efforts prove insufficient and a violation of applicable laws or regulations occurs, the Group's performance and other results could be adversely affected by penalties, disciplinary measures or other sanctions, as well as damage to its social credibility and image.」
Describes the risk of legal violations associated with its diverse businesses, including construction and real estate, and the response through training.