Misconduct by Officers, Employees and Business Partners and Leakage of Confidential Information
First written in FY2016. 2 of 5 entries say "Worsened", first in FY2023. Latest entry: FY2024.
Hakuhodo Dy Holdings moved to the "Worse" side of this theme in 2021, 4 years before the typical company in this theme (2025).
The whole theme swung hardest in 2023: 4 of 15 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「An internal investigation found that inappropriate billing deviating from the transaction rules agreed with customers had been carried out in advertising production transactions at consolidated subsidiaries, including Hakuhodo Inc. In addition, it was discovered that Nippon Total Telecom Marketing Co., Ltd., a consolidated subsidiary, had overbilled local governments for outsourced call-center and consultation-desk services related to COVID-19 vaccinations.」
With regard to the previously identified risk of fraud by officers, employees and others, overbilling and inappropriate billing were actually identified at consolidated subsidiaries, including Hakuhodo Inc., and at Nippon Total Telecom Marketing. The Company established an investigation committee comprising external attorneys, conducted internal inspections and reduced revenue. - FY2023WorsenedAnnual report
「On 27 September 2022, an executive officer of consolidated subsidiary Dentsu Live Inc. was arrested by the Tokyo District Public Prosecutors Office on suspicion of bribery in the sponsor selection process for the Tokyo 2020 Olympic and Paralympic Games and was indicted on 18 October of the same year. In addition, in connection with contracts for outsourced work, including the planning of various test events held for the Games, an employee of consolidated subsidiary Hakuhodo DY Media Partners who was engaged in this work and one employee of consolidated subsidiary Hakuhodo Inc. were indicted by the Tokyo District Public Prosecutors Office after being accused by the Japan Fair Trade Commission on suspicion of violating the Antimonopoly Act (unreasonable restraint of trade) on 28 February 2023.」
Multiple specific incidents involving the arrest and indictment of officers and employees on suspicion of bribery and violations of the Antimonopoly Act have occurred in relation to the risk of fraud by officers and employees. - FY2021-Q3MaterialisedAnnual report
「Of the claims for reimbursement arising from fraudulent acts by a former employee of a subsidiary, the uncollectible portion excluding the amount secured has been recorded as an extraordinary loss. Write-off of claims for reimbursement 2,710」
In connection with fraudulent acts by a former employee of a subsidiary, uncollectible claims for reimbursement of ¥2,710 million were recorded as an extraordinary loss, meaning that the fraud previously described as a risk has materialized as a specific loss. - FY2020RestatedAnnual report
「There is no guarantee that fraud by officers and employees can be completely prevented, despite various initiatives to comply with laws and regulations and internal rules. Involvement by the Group's business partners and other parties in fraudulent acts may also become an issue.」
The risk of fraud by officers, employees and business partners, and the leakage and unauthorized use of confidential information, continues. - FY2016First statedAnnual report
「There is no guarantee that fraud by officers and employees can be completely prevented, despite various initiatives to comply with laws and regulations and internal rules. Involvement by the Group's business partners and other parties in fraudulent acts may also become an issue.」
The risk includes the leakage and unauthorized use of customer information and other confidential information.