Last Updated: 2023.10.27
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Instilling a basic code of conduct across our business
All Fast Retailing Group employees are expected to act in a way that upholds compliance, human rights, and the Group's corporate philosophy. The basic principles of behavior that all employees are expected to uphold are clearly laid out in the Fast Retailing Group Code of Conduct. All employees are expected to participate in an annual training on Code of Conduct and sign a declaration to uphold the Code of Conduct once they have achieved a deeper understanding of its contents. Fast Retailing aims to ensure compliance is prioritized in all actions by encouraging all employees to aspire to be good members of society, who pursue the highest level of ethics in all their thoughts and actions.
Employee Hotline
Fast Retailing has established a hotline for employees to freely call regarding questions about work or to report violations of our Code of Conduct. Staff in charge of compliance offer advice and investigate circumstances behind calls received via the hotline. We escalate any suspected violations of our Code of Conduct to the Code of Conduct Committee for proper response. When necessary, the matter is also referred to the Disciplinary Committee. We protect the privacy of individuals involved, prohibit retaliation, and do not allow discriminatory treatment in any form.
Preventing corrupt practices
The Fast Retailing Group supports the principles of the United Nations Global Compact, and, as such, strives to prevent all corrupt practices, including coercion and bribery. We encourage ethical and fair business practice that upholds our Fast Retailing Group Code of Conduct governing employee behavior, and adheres to our Internal Policy on Preventing Corrupt Practices.
In all markets in which we operate, we abide by strict rules that forbid bribes, gifts or entertaining of public officials or similar persons; require us to follow appropriate procedures and act fairly in all our dealings with government and public agencies, and; demand that we maintain healthy relations with political and government forces and avoid making unjust or inappropriate donations or contributions. We also do not offer any illegal remuneration or reward to public or government-related officials for such things as facilitation payments (the payment of small sums to expediate and smooth the progress of administrative procedures such as customs clearance or the granting of visas).
Any significant compliance violations, such as corrupt practices, are elevated to the Code of Conduct Committee or a disciplinary committee, which will deliberate the need for disciplinary action and discuss any future preventative measures. Any serious violations are reported to the Board of Directors. There were no reported incidents of Fast Retailing having paid fines, penalties, or financial settlements as a result of corrupt practices in fiscal 2020, or the 12 months from September 2019 through August 2020.
In the same way, we ask business partners to instigate measures to prevent corruption as stipulated in our Business Partner Operational Guidelines, and we only form contracts with partners who respect and adhere to those guidelines. If any corrupt practices are uncovered at business partners, we demand immediate improvements. If no obvious improvements are forthcoming, we will review or terminate our business with that partner.
Fast Retailing has also set up a hotline that employees can use to report compliance issues anonymously. To ensure all employees adhere to our anti-corruption rules, we also offer regular compliance-related e-learning training opportunities in the native language of each market in which we operate.
Business Partner Operational Guidelines
In order to build fair and mutually beneficial relations with all of our business partners, we have compiled Basic Principles in ten key areas under Fast Retailing's Business Partner Operational Guidelines, and we enter into contracts with partners who adhere to these Guidelines.
1. Compliance with Laws and Regulations
2. Ensuring the Quality and Safety of Products and Services
3. Anti-Corruption and Commercial Bribery
4. Unfair Transactions
5. Respect for Human Rights
6. Labor and the Workplace Environment
7. Information security
8. Protecting intellectual property
9. Symbiosis with Society
10. Consideration for Earth and the Environment
Guidelines for Prevention of Abuse of Superior Bargaining Position
Fast Retailing Group has established Guidelines for Prevention of Abuse of Superior Bargaining Position to prevent taking advantage of its advantageous position over suppliers when conducting business transactions. The Guidelines aim to ensure ethical and fair relationships with our business partners.
Dedicated Desk for Business Partners' Opinions and Requests
In order to promote fair and honest dealings with business partners, Fast Retailing has set up a hotline* for receiving reports from business partners who observe compliance violations (or potential violations), or behaviors and attitudes that deviate from socially-accepted norms and ethics. A report can be raised anonymously, and we fully protect the privacy of people who raise reports. We promptly investigate all cases we receive and try to resolve issues as soon as possible. Should we identify any case where Fast Retailing has conducted business inappropriately, such as misusing an advantageous position over business partners, or violating human rights, the matter will be immediately escalated to the Business Ethics Committee or the Human Rights Committee.
*The hotline for business partners is setup in Japan only.
