Tightening of food, environmental and labor regulations and compliance costs
First written in FY2017. 4 of 6 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2023: 4 of 12 companies on the "Worse" side.
19 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「In addition to the laws described above, the Group is subject to the Antimonopoly Act in its transactions generally and to the Act on the Promotion of Proper Subcontracting Transactions (the Tekiho Act) for the procurement of certain products. It also operates parts of its supermarket, business supermarket, boxed-meal catering and meal-delivery businesses under outsourcing agreements with external operators and is subject to various laws and regulations.」
The company describes the scope of regulations applicable to the food, environmental and labor sectors, as well as the Tekiho Act and outsourced operations. - FY2023RestatedAnnual report
「Minor incidents similar to this risk occur each year. To address this risk, we are working to gather information on the relevant matters, establish laws and internal rules, and strengthen controls, including by obtaining advice from legal counsel and other specialists as necessary.」
The company continues to state that minor incidents related to laws and systems occur each year and that it responds by gathering information, establishing internal rules and obtaining advice from specialists. - FY2020RestatedAnnual report
「In addition, minor instances of this risk materialize each year.」
The company continues to state that minor incidents related to changes in laws and systems or violations occur each year. - FY2019-Q3MaterialisedAnnual report
「However, personnel expenses increased due to changes in systems, including the expansion of social insurance coverage, and segment profit declined from the same period of the previous year.」
Changes in systems, including the expansion of social insurance coverage, actually increased personnel expenses, and segment profit in the supermarket business declined 14.5% year on year. - FY2018RestatedAnnual report
「The Group is subject to laws and regulations concerning food safety, food hygiene and food labeling. If a serious food hygiene problem occurs or regulations are tightened, higher procurement and product preparation costs may affect the Group’s operating results and financial condition.」
The company provides further details on the risk of regulatory violations and higher costs resulting from tighter regulations concerning food safety, hygiene and labeling, the environment and labor. - FY2017First statedAnnual report
「In addition to the Large-Scale Retail Stores Location Act and the Antimonopoly Act, the Group works to comply with laws and regulations concerning food safety management, the environment and recycling. If a violation of these laws or regulations occurs, business activities may be restricted. In addition, compliance with regulatory requirements may increase operating costs, potentially affecting the Group’s operating results and financial condition.」
The company identifies for the first time as business risks violations of regulations concerning food, the environment, competition, store locations and other areas, as well as the costs of complying with regulations.