Decline in Trust and Reputation Due to Serious Legal or Regulatory Violations
First written in FY2018. 2 of 4 entries say "Materialised", first in FY2019-Q3. Latest entry: FY2024.
The whole theme swung hardest in 2024: 8 of 54 companies on the "Worse" side.
69 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「If a serious violation of laws or regulations or fraud or other inappropriate conduct by an officer or employee occurs, damage to the brand image caused by the loss of customers' confidence and trust and a decline in social standing and reputation may have a material impact on the business foundation」
Continues to identify the risk of declining credit and reputation arising from serious violations of laws and regulations and inappropriate conduct, together with an explanation of the compliance framework. - FY2019MaterialisedAnnual report
「As a result, on 8 March 2019, the Company received a decision from the Tokyo District Court imposing an administrative fine of ¥83.4 million.」
Credit and reputational risk arising from serious violations of laws and regulations materialised specifically in the form of the administrative fine imposed in connection with the final inspection issue. - FY2019-Q3MaterialisedAnnual report
「In addition, on 19 December 2018, because some of the inappropriate sampling inspections constituted cases in which part of the final inspections had not been performed, the Ministry of Land, Infrastructure, Transport and Tourism notified the Tokyo District Court that an administrative fine should be imposed on the Company under the Road Transport Vehicle Act.」
Credit and reputational risk arising from serious violations of laws and regulations and inappropriate conduct relating to final inspections materialised specifically in the form of the Ministry of Land, Infrastructure, Transport and Tourism's notification seeking imposition of an administrative fine. - FY2018First statedAnnual report
「Nevertheless, if a serious violation of laws or regulations or other such event occurs, it may have a material impact on the Group's business foundation and adversely affect its business performance and financial position by causing it to lose customers' confidence and trust and suffer a decline in its social standing and reputation.」
For the first time, explicitly identified loss of customer confidence and trust, declining social standing, and the impact on the business foundation caused by compliance violations as standalone risks.