Building Better Partnerships

Establishing relationships with business partners based on equality and friendship is a major goal at FAST RETAILING. As one way to accomplish this goal, we have a number of guidelines, including the prohibition of "taking advantage of a superior position to conduct improper behavior" as prescribed by Japan's Anti-Monopoly Law.

In 2004, UNIQLO established the Guidelines for the Prevention of Improper Behavior Based on Superior Positions* with a focus on inter-company transactions. That same year, UNIQLO set up a Business Ethics Committee. Our objective was to eliminate all activities that violate global standards for corporate behavior. Accordingly, this committee is charged with raising employee awareness of ethical issues and reviewing all corporate activities. Vice President in charge of CSR chairs the committee, which is mainly made up of external auditors, a legal adviser and company directors from departments associated with ethical matters. The committee discusses a variety of issues at its monthly meetings.

* Improper Behavior Based on Superior Positions: The use of a position of superiority in a business transaction to exert pressure on a counterparty for the purpose of forcing the counterparty to accept disadvantageous conditions that would not occur if the relation were between equals.

The UNIQLO Guidelines for Prevention of Improper Behavior Using Superior Positions

Objective:: To prevent improper behavior by FAST RETAILING employees involving transactions with other companies, as FAST RETAILING aims to be an organization that meets global standards for corporate behavior.
Substance:: Policy to prevent improper behavior concerning transactions with other companies and to establish necessary and appropriate internal procedures.
Sample item:
Employees shall not make one-sided revisions to contract terms or one-sided decisions to downsize or terminate a business relationship, and shall not make improper demands for loss compensation.

UNIQLO Business Partner Survey

Every year, UNIQLO asks business partners to complete a questionnaire. Feedback is used to verify that all UNIQLO executives and employees are performing their jobs properly and in line with guidelines. For example, business partners are asked about one-sided demands for changes in orders and demands for meals and entertainment. The Business Ethics Committee examines the survey results and conducts further investigations as required.