Legal, Accounting and Labor Compliance Risks in Overseas Business
First written in FY2016. 2 of 6 entries say "Mitigated", first in FY2017. Latest entry: FY2026-H1.
The whole theme swung hardest in 2026: 22 of 71 companies on the "Worse" side.
- FY2026-H1RestatedAnnual report
「There are also many uncertainties in estimating fines and administrative penalties that may be imposed by the authorities at this time, making it difficult to reasonably estimate the specific amount of future losses.」
The company has reconfirmed, in relation to the improper payments at the overseas subsidiary, the applicable local laws and regulations, responses to the authorities and the difficulty of estimating future losses. - FY2025-H1RestatedAnnual report
「There are also many uncertainties in estimating fines and administrative penalties that may be imposed by the authorities at this time, making it difficult to reasonably estimate the specific amount of future losses.」
The company has reconfirmed, in relation to the improper payments at the overseas subsidiary, the applicable local laws and regulations, responses to the authorities and the difficulty of estimating future losses. - FY2024MaterialisedAnnual report
「It has been reported that, at the overseas subsidiary, improper payments were made continuously over an extended period to senior personnel and others at multiple customers in a particular business for purposes including securing orders for projects, and that these payments were made systematically under management approval before we acquired the overseas subsidiary. It has also been pointed out that these improper payments could constitute violations of local anti-corruption laws and other laws and regulations, as well as breaches of contracts with customers.」
Legal and compliance risks related to the operation of the overseas subsidiary actually materialized in the form of improper payments and potential violations of laws, regulations and contracts. - FY2021MitigatedAnnual report
「As part of our business strategy, our group is expanding its overseas business through measures including expanding overseas transactions, establishing overseas subsidiaries and pursuing capital alliances, while also working to strengthen governance.」
The company explicitly states its policy of strengthening governance alongside the expansion of its overseas business and continues to address overseas legal, accounting, labor management, contractual and project management risks. - FY2017MitigatedAnnual report
「Our group recognizes these risks and is strengthening risk management by designating responsible departments. However, if we are unable to respond appropriately to local rules and other requirements, we could be held liable for damages, potentially affecting the performance of our group.」
The company states that it is strengthening management of overseas legal, accounting and labor management risks by designating responsible departments, while the risks themselves continue to exist. - FY2016First statedAnnual report
「Overseas operations entail various risks, including problems arising from insufficient knowledge of or investigation into domestic laws, such as export control laws governing overseas transactions, local laws and business practices, or differences among them; and the inability to respond appropriately to local laws, accounting practices, labor management and contracts in establishing and operating overseas subsidiaries.」
The company describes legal, accounting, labor management and contractual risks related to overseas transactions and the operation of local subsidiaries.