Legal Violations and Compliance Risk
First written in FY2017. 3 of 11 entries say "Restated". Latest entry: FY2026.
Computer Engineering & Consulting moved to the "Worse" side of this theme in 2019, 6 years before the typical company in this theme (2025).
The whole theme swung hardest in 2024: 8 of 54 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The Group is also making improvements by strengthening cooperation with its corporate lawyers and social insurance and labor consultants, providing compliance training for all employees and by organizational level, promptly identifying issues through internal reporting channels established inside and outside the company, and verifying the effectiveness of compliance through the Audit and Supervisory Committee and the Internal Audit Department.」
The Group continues to respond through cooperation with specialists, company-wide and level-specific training, internal reporting channels inside and outside the company, and verification by the Audit and Supervisory Committee and the Internal Audit Department. - FY2025MitigatedAnnual report
「The Group also works to reduce compliance-related risks by providing compliance training for all employees and by establishing internal reporting channels inside and outside the company.」
The Group describes consultation with lawyers and other specialists, the acquisition of legal and regulatory information, codes of conduct, company-wide and level-specific training, and internal reporting channels inside and outside the company as countermeasures, in addition to compliance with laws, regulations and internal rules. - FY2022WorsenedAnnual report
「In addition, if internal rule violations or incidents involving breaches of laws and regulations occur as a result of employee misconduct or human resources and labor issues such as excessive working hours and harassment, this could affect the performance and financial condition of the Group through investigation expenses, claims for damages, declines in employee motivation and other consequences.」
In addition to the existing risks of violations of laws and regulations and inappropriate transactions, the Group has added employee misconduct and human resources and labor issues such as excessive working hours and harassment. - FY2021MitigatedAnnual report
「In response, the Group established the “シーイーシー Group Corporate Code of Conduct” and the “シーイーシー Employee Code of Conduct” to improve corporate ethics and ensure thorough compliance with laws, regulations and internal rules. It also works to reduce compliance-related risks by providing compliance training for all employees and by establishing internal reporting channels both inside and outside the company.」
In addition to its corporate and employee codes of conduct, the Group has specified company-wide and level-specific training and internal reporting channels inside and outside the company as countermeasures. - FY2021-Q3RestatedAnnual report
「Because it was confirmed that the payment in question did not need to be refunded, the full amount was recorded as “extraordinary income” in the second-quarter consolidated accounting period.」
The quarterly financial statements continue to state that the ¥530.698 million payment from a third party was recorded as extraordinary income after it was confirmed that no refund was required. - FY2021-Q2It was confirmed that the payment from a third party did not need to be refundedAnnual report
「Because it was confirmed that the payment in question did not need to be refunded, the full amount was recorded as “special receipt” in the second-quarter consolidated accounting period.」
The ¥530.698 million payment received from a third party in the previous fiscal year was confirmed as non-refundable, and the full amount was recorded as a special receipt. - FY2020MaterialisedAnnual report
「An investigation by a special investigation committee including outside experts found that transactions involving fictitious flows of goods had been conducted in purchase-and-resale transactions carried out in response to customer needs in connection with the Group’s core businesses of systems development and IT-related services. It also found that revenue had been recognized prematurely in transactions in which the Group stored purchased products as inventory before selling them.」
The annual report provides details of the actual discovery of fictitious transaction flows and premature revenue recognition in connection with the inappropriate transactions and accounting treatment. - FY2020-Q3MaterialisedAnnual report
「Following the investigation report issued by the investigation committee concerning the inappropriate transactions and accounting treatment in question, the Group formulated measures to prevent recurrence and published them on 10 December 2019.」
The compliance risk previously described as the possibility of violations of laws and regulations materialized in the form of inappropriate transactions and accounting treatment. The financial statements recorded special investigation expenses of ¥263.445 million and a payment of ¥530.698 million from a third party. - FY2019RestatedAnnual report
「The Group has established the “シーイーシー Group Corporate Code of Conduct” and the “シーイーシー Employee Code of Conduct” to improve corporate ethics, and requires each employee to comply thoroughly with laws, regulations and internal rules. However, compliance-related risks may not be completely avoidable, and if the Group violates laws or regulations, or an incident occurs involving a breach of laws or regulations in the course of conducting its business, this could affect the performance and financial condition of the Group through claims for damages, loss of credibility and other consequences.」
The Group continues to state that, while promoting compliance with laws and regulations through its corporate and employee codes of conduct, compliance risks cannot be completely avoided. - FY2018RestatedAnnual report
「The Group has established the “シーイーシー Group Corporate Code of Conduct” and the “シーイーシー Employee Code of Conduct” to improve corporate ethics, and requires each employee to comply thoroughly with laws, regulations and internal rules. However, compliance-related risks cannot be completely avoided」
The Group continues to state that, while promoting compliance with laws and regulations through its corporate and employee codes of conduct, compliance risks cannot be completely avoided. - FY2017First statedAnnual report
「However, because compliance-related risks cannot be completely avoided, if the Group violates laws or regulations, or an incident occurs involving a breach of laws or regulations in the course of conducting its business, this could affect the Group’s social credibility and performance.」
The Group states that compliance risks cannot be completely avoided and that violations of laws or regulations could affect its credibility and performance.