Risks of legal violations and reputational damage associated with the use of business partners
First written in FY2022. 2 of 4 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2026: 4 of 13 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2025Applicable laws amendedAnnual report
「Our group has implemented appropriate measures to avoid violating the amended Subcontract Act (the Transactions Optimization Act), which took effect on 1 January 2026, and the Act on Securing the Proper Operation of Worker Dispatching Undertakings and Protection of Dispatched Workers. However, if an act is deemed a legal violation because of the interpretation of the laws or a determination by the authorities, resulting in reputational damage or claims for compensation, this may affect our group’s operating results and financial position.」
The company specifies its response to the amended Subcontract Act (the Transactions Optimization Act), effective 1 January 2026. It does not state that the risk has materialized. - FY2024RestatedAnnual report
「Our group has implemented measures to avoid violating the Act on the Prevention of Delay in Payment of Subcontracting Proceeds, Etc. (the Subcontract Act) and the Act on Securing the Proper Operation of Worker Dispatching Undertakings and Protection of Dispatched Workers. However, if we violate either law, resulting in reputational damage and lawsuits seeking compensation, this may affect our group’s operating results and financial position.」
The group reiterates the risk of violations of the Subcontract Act and Worker Dispatch Act associated with using business partners. - FY2023RestatedAnnual report
「Our group has implemented measures to avoid violating the Act on the Prevention of Delay in Payment of Subcontracting Proceeds, Etc. (the Subcontract Act) and the Act on Securing the Proper Operation of Worker Dispatching Undertakings and Protection of Dispatched Workers. However, if we violate either law, resulting in reputational damage and lawsuits seeking compensation, this may affect our group’s operating results and financial position.」
The group reiterates the risks of violating the Subcontract Act or Worker Dispatch Act when using business partners, reputational damage and claims for compensation. - FY2022First statedAnnual report
「We have implemented measures to avoid violating the Act on the Prevention of Delay in Payment of Subcontracting Proceeds, Etc. (the Subcontract Act) and the Act on Securing the Proper Operation of Worker Dispatching Undertakings and Protection of Dispatched Workers. However, if we violate either law, resulting in reputational damage and lawsuits seeking compensation, this may affect our operating results and financial position.」
The company identifies as risks violations of the Subcontract Act and Worker Dispatch Act in cooperation with business partners, reputational damage and claims for compensation.