business ethics and compliance code - qisjp.co.uknotification to ifia/tic of qisj's appointed...
TRANSCRIPT
BUSINESS ETHICS and
COMPLIANCE CODE
2nd Edition, November 2019
QUALITYINSPECTIONSERVICESINC.JAPAN
YCC1608,22Daikoku-futo,Tsurumi-ku,Yokohama,Japan230-0054Tel:(81)45-500-6033Fax:(81)45-500-6034e-Mail:[email protected]
TABLE OF CONTENTS
INTRODUCTION .................................................................................................................................................... 4
INTEGRITY ............................................................................................................................................................. 6
CONFLICTSOFINTEREST ....................................................................................................................................... 6
CONFIDENTIALITYANDDATAPROTECTION ........................................................................................................ 7
ANTI-BRIBERY ........................................................................................................................................................ 7
FAIRBUSINESSCONDUCT ..................................................................................................................................... 7
HEALTHANDSAFETY ............................................................................................................................................ 8
FAIRLABOR ........................................................................................................................................................... 8
1. APPLICATIONOFCOMPLIANCEPRINCIPLES .................................................................................................... 9
1.1. INTEGRITY ................................................................................................................................................. 9
1.2 CONFLICTSOFINTEREST ........................................................................................................................... 9
1.3 CONFIDENTIALITYANDDATAPROTECTION ......................................................................................... 10
1.4 ANTI-BRIBERYRULES ............................................................................................................................. 11
1.4.1 COMPLIANCEWITHLAWS ............................................................................................................. 11
1.4.2 ANALYSISOFRISKS ........................................................................................................................ 11
1.4.3 POLITICALCONTRIBUTIONS .......................................................................................................... 11
1.4.4 CHARITABLECONTRIBUTIONSANDSPONSORSHIPS ................................................................... 12
1.4.5 FACILITATIONPAYMENTS ............................................................................................................. 12
1.4.6 GIFTS,HOSPITALITYANDEXPENSES ............................................................................................. 13
1.4.7 ACCOUNTINGANDBOOKKEEPING ............................................................................................... 13
1.5 FAIRBUSINESSCONDUCT ...................................................................................................................... 14
1.6 HEALTHANDSAFETY ............................................................................................................................. 14
1.7 FAIRLABOUR .......................................................................................................................................... 15
2. IMPLEMENTATIONOFCOMPLIANCEPRINCIPLES ........................................................................................ 16
2.1 IMPLEMENTATION ................................................................................................................................. 16
2.2. COMPLIANCEPRINCIPLESANDRULES .................................................................................................. 16
2.3. APPOINTMENTOFCOMPLIANCEOFFICER ........................................................................................... 16
2.4. ESTABLISHMENTOFACOMPLIANCECOMMITTEE ............................................................................... 17
2.5. HUMANRESOURCES .............................................................................................................................. 17
2.5.1. RECRUITMENT ................................................................................................................................ 17
2.5.2. EMPLOYEECOMMITMENT ............................................................................................................ 17
2.5.3. TRAINING ....................................................................................................................................... 17
2.5.4. CONSULTATIONONCODEDEVELOPMENT ................................................................................... 18
2.5.5. EMPLOYEEPERFORMANCEEVALUATION ..................................................................................... 18
2.5.6. EMPLOYEE"HELPLINES" ............................................................................................................... 18
2.6. SECURITYMEASURES ............................................................................................................................. 18
2.7. EXTERNALCOMMUNICATIONS ............................................................................................................. 18
2.8. REPORTINGOFVIOLATIONS .................................................................................................................. 19
2.9. INVESTIGATIONSANDSANCTIONS ....................................................................................................... 19
2.10. EFFECTIVENESSOFTHEPROGRAMIMPLEMENTATION ................................................................... 20
2.10.1. MANAGEMENTDECLARATIONS .................................................................................................... 20
2.10.2 INTERNALAUDITS .......................................................................................................................... 20
2.10.3. EXTERNALEXAMINATIONS ........................................................................................................... 21
2.10.3.1. FREQUENCY ................................................................................................................................ 21
2.10.3.2. INDEPENDENTEXTERNALAUDITFIRM ..................................................................................... 21
2.10.3.3. USEOFCOMPLEMENTARYEXTERNALAUDITFIRMS ............................................................... 22
2.10.3.4. NOTIFICATIONTOIFIA/TICOFQISJ'SAPPOINTEDEXTERNALAUDITFIRM(S) ........................ 22
2.10.3.5. SCOPEOFEXAMINATION .......................................................................................................... 23
2.10.3.6. EXTERNALAUDITFIRM'S“ASSURANCEREPORT” .................................................................... 24
2.10.3.6.1. REPORTABLECONDITIONS .................................................................................................... 25
2.11. APPLICATIONOFTHEQISJ’SPRINCIPLESANDRULESINBUSINESSRELATIONSHIPS ..................... 25
2.11.1. INTERMEDIARIES ........................................................................................................................... 25
2.11.2. JOINTVENTUREPARTNERS ........................................................................................................... 27
2.11.3. AGENTSANDSUBCONTRACTORS ................................................................................................. 28
2.11.4. CONTRACTORSANDSUPPLIERS .................................................................................................... 28
2.12. COMPLAINTSANDDISCIPLINARYPROCEDURES .............................................................................. 28
INTRODUCTION
QualityInspectionServicesInc.Japan(QISJ)isafast-growinginspectioncompanybasedinYokohama.Apartfromitscurrentfocusonvehicleinspections,QISJalsoconductsinspectionofvehiclespareparts,machinery,tractors,trailers,boats,andotheroffroad-vehicles. Thecompanywasestablishedin2009byindustryveteran,Mr.KiyoakiHatano.Overtheyears,QISJexpandedandacquirednewinspectioncentersacrossJapan,U.A.E,U.K,andSouthAfrica.
InJapan,QISJhasmorethan30inspectionscenterslocatedintheeightstrategiccitiesofKisarazu,Yokohama,Nagoya,Kobe,Kawasaki,Osaka,HakataandMoji.TheseareamongJapan’sbusiestports.
QISJisproudtobeaccreditedwithISO/IEC17020TypeAaswellasISO9001.Thisenablesthecompanytoconductvisual/body,mechanical,electricalsystem,andsafetyinspections.QISJcanalsoprovidedocumentverificationandradiationinspection.
QISJiscommittedtothequalityofitsserviceofferings,customersatisfaction,andindependencefromtradingcompaniesintheindustriestheyoperateintomaintaintheobjectivityofinspectionresults.
QISJisanenvironmentconsciousorganizationand,therefore,adherestostrictenvironmentalstandards.Allrulesandregulationssetbyinternationalregulatorybodiesarecompliedwith.Theessenceofthiscanbeseeninourdailyoperations.
QISJcontinuestoofferthehigheststandardsofvehiclesinspectionservicesandmakeasignificantcontributionforsaferroadtransportationsystems.
Inanindustrywherehighstandardsarelookedupon,QISJhasimplementedaBusinessEthics&Complianceprogramthroughoutitsnetworkofoffices.DrivingthisprogramisourQISJBusinessEthics&ComplianceCodewhichapplytoallouractivities.Italsoaddressesourtechnicalwork,businessprofessionalconduct,andethicsinrelationtothefollowingareas:
ü Integrity
ü Conflictsofinterest
ü ConfidentialityandDataProtection
ü Anti-bribery
ü FairBusinessConduct
ü HealthandSafety
ü FairLabor
ToensuretheeffectivenessoftheimplementationofourCode,anindependentauditisconductedbythecompany’sexternalfinancialauditorsannually.
TheQISJBusinessEthicsandComplianceCodereflectstherequirementsoftheIFIA/TICComplianceCode(4thedition)asofDecember2018.
ForfurtherinformationpleasecontacttheQISJComplianceOfficer:Email:[email protected]:(81)045-500-6033Ext.11
COMPLIANCE PRINCIPLES
INTEGRITY
QISJoperatesinaprofessional,independentandimpartialmannerinallitsactivities.QISJcarriesoutitsworkhonestlyanddoesnottolerateanydeviationfromitsapprovedmethodsandprocedures.Incaseswhereapprovedtestmethodsmakeprovisionfortolerancesinresults,QISJensuresthatsuchtolerancesarenotabusedtoaltertheactualtestfindings.QISJreportsdata,testresultsandothermaterialfactsingoodfaithanddoesnotimproperlychangethem,andonlyissuereportsandcertificatesthatcorrectlypresenttheactualfindings,professionalopinionsorresultsobtained.
CONFLICTSOFINTEREST
QISJavoidsconflictsofinterestwithanycustomersorrelatedentityinwhichitisrequiredtoprovideservices.QISJensuresthatitsemployeesavoidconflictsofinterestwiththeactivitiesofQISJ.Furthermore,anypersonemployedbyourcustomersorrelatedentitiestowhichweprovideserviceswillnotbeincludedinouremployeeslist.
BUSINESS ETHICS and COMPLIANCE CODE
CONFIDENTIALITYANDDATAPROTECTION
QISJhandlesallinformationreceivedduringtheconductofitsservicesasconfidentialinsofarassuchinformationisnotalreadypublished,generallyavailabletothirdpartiesorotherwiseinthepublicdomain.
ANTI-BRIBERY
QISJdoesnotallowtheofferoracceptanceofabribeinanyform,includingkickbacksonanyportionofacontractpayment.QISJprohibitsanyacceptanceoffinancialornon-financialpaymentsasameansofguaranteeingorfasttrackingtheexecutionofaroutineactionasameansofreceivingourcertificateorinspectionreport.QISJforbidstheuseofotherroutesorchannelsforprovisionofimproperbenefitsto,orthereceiptofimproperbenefitsfrom,customers,agents,contractors,suppliersoremployeesofanysuchpartyorgovernmentofficials.
FAIRBUSINESSCONDUCT
QISJ only presents itself and conducts marketing including comparisons with, orreferencesto,competitors,ortheirservices,inamannerthatistruthful,notdeceptiveormisleadingorlikelytomislead.QISJiscommittedtoconductitselfwiththehigheststandardsofbusinessethicsandintegrity,andshallnotdoanythingwhichwouldbringitsreputation,orthereputationofIFIA/TICCouncilortheTICindustry,intodisrepute
HEALTHANDSAFETY
QISJimplementsadequatetrainingandprocedurestoprotectthehealthandsafetyofemployees,customers,andthirdpartiesandshallmonitorincidentswiththeviewofminimizingrisksinthecourseofbusinessoperations.
FAIRLABOR
QISJisawareofitssocialresponsibilityforitsemployeesandthepeople,communitiesandenvironmentsinwhichitworksandshallrespecthumanrightsandhaszerotolerancepolicyagainstanyformofharassmentintheworkplace.
1. APPLICATIONOFCOMPLIANCEPRINCIPLES
TheimplementationofQISJ’sprinciplesisbasedontheInternationalFederationofInspection Agencies/Testing, Inspection and Certification Council (IFIA/TIC)complianceprinciplesandcoverstheentireQISJorganization.AsanISO17020andISO 9001 accredited company, all QISJ principles are integrated with our ISOstandards.
1.1. INTEGRITY1.1.1 QISJ provides guidance to its employees for dealing with clients who
expectQISJtoabusetolerancestoobtainacceptableresults
1.1.2 QISJ demands that all its employees, partners, intermediaries complywithQISJComplianceCodeand thegoverning local lawsof theservicelocations. Any criminal or illegal actions found after due processinvestigationsshallwarrantthefullconsequenceaspertheQISJby-laws.
1.1.3 InrespectofthosebusinesssectorsinwhichQISJisactive,QISJcomplieswith any sector specific IntegrityRulespublishedby the applicable TICCouncilandorrelevantentities.
1.2 CONFLICTSOFINTEREST1.2.1 Toavoidconflictsof interest,ortheappearanceofconflictsof interest,
in QISJ’s business transactions and services, QISJ maintains a policyregardingconflictsofinterest.
APPLICATION AND IMPLEMENTATION OF
COMPLIANCE PRINCIPLES
1.2.2 QISJ’s policy provides guidelines to employees to avoid conflicts ofinterestbetween:
i. QISJ and any related entities in which QISJ has a financial orcommercial interestandtowhich it is required toprovideservices;and
ii. QISJ’scompaniesand/orbranchesengagedindifferentactivitiesbutwhichmay be providing services to either the same client or eachother.
1.2.3 QISJ’s policy provides, at a minimum, that QISJ’s employees shallnot:
i. Directly or through relatives, friends or intermediaries, acquire aninterestinasupplier,aclientoracompetitorofQISJ,exceptfortheacquisitionof sharesof a client, supplieror competitoronapublicstock exchange, and then only to an extent which does not grantsignificant influence over the affairs of the client, supplier orcompetitor and which does not make the Employee undulydependentonitsfinancialfortunes.
ii. Holdanypositionwithacompetitororclient.
iii. Conduct any company businesswith anymember of their family orwith an individual or organizationwithwhich they or their family isassociated.
iv. Employ a member of their family without approval of QISJ'smanagement.
1.3 CONFIDENTIALITYANDDATAPROTECTION1.3.1 QISJ’sEmployeesarerequired,asaconditionofemployment,tosigna
Non-Disclosure Agreement which prohibits the disclosure of anyconfidentialbusinessinformation,obtainedduringtheiremployment,tootherparties.
1.3.2 QISJ ensures that all intermediaries, joint venture partners, agents,subcontractors, contractors and suppliers are made aware of theconfidential nature of the business information that they may handlethrough their dealings with QISJ, and that they should not discloseconfidential information tootherparties. Theyare required to commit
totheComplianceCodewhichincludesthepolicyonconfidentialityanddataprotection.
1.4 ANTI-BRIBERYRULES
1.4.1 COMPLIANCEWITHLAWSi. QISJ ensures that the Principles and Rules of its Programmeet the
requirements of the IFIA/TIC/TIC Compliance Code and local lawsrelevant to countering bribery in all the jurisdictions in which QISJoperates.
ii. If the local laws specify additional or different requirements, whicharenotcoveredbytheProgram,QISJmodifiesaccordinglyitsProgramforthecountry(ies)concerned. RecordsarekeptofcountrieswheretheProgramhasbeenmodified.
1.4.2 ANALYSISOFRISKSQISJ’s Compliance Committee and/or the Managing Director, or hisdelegate, in each country of operation organizes periodic reviews toassessbriberyrisksanddetermineappropriatecontrolmeasures.Suchreviewsaresystematicallyconducted:
i. Prior to the commencement of a new service or the startup ofoperationsinanewcountry,and
ii. Whenever a significant breach of QISJ’s Business Ethics &ComplianceCodeandRulesoccurswhichwarrants a reviewof theexistingcontrolmeasures.
1.4.3 POLITICALCONTRIBUTIONSQISJ, its employees, agents or intermediaries shall notmake direct orindirect contributions to political parties, organizations or individualsengaged in politics, as a way of obtaining advantage in businesstransactions.
i. Maintainsapolicyandcriteriaforpoliticalcontributions.
ii. Ensures proposed political contributions be subject to prior reviewand approval by the QISJ Compliance Committee including theManaging Director and shall consider the applicable laws in thecountriesconcerned.
iii. Accounts for all political contributionsmade by QISJ in a separategeneralledgeraccountinitsaccountingrecords.QISJconsolidatesall
such payments made by any of its operations forming part of itsorganization.
1.4.4 CHARITABLECONTRIBUTIONSANDSPONSORSHIPSQISJ ensures that all charitable contributions and sponsorshipsarenotusedasasubterfugeforbribery.Indoingso,QISJ:
i. Maintains a policy and criteria for charitable contributions andsponsorships.
ii. Every contribution or sponsorship shall require approval from theManagingDirector.
iii. Prior to approval of each proposed charitable contribution orsponsorshipaduediligencereviewisconductedtoensurethat:
¡ The organization receiving the contribution or sponsorship isreputablepursuingapurposeunequivocallyinthepublicinterestand having the financial and personnel resources required toreach its purpose. Care should be taken to ensure that theorganizationisnota"front"forsomeotherpurpose.Donationsto individuals shall be avoided unless approved andmonitoredbyQISJ’sComplianceCommittee.
¡ Therearenoconflictsofinterest.
¡ SponsoringagreementsareinwritingandstatetheconsiderationbeingofferedbyQISJ.Iffundsareoffered,theuseofthesefundsshallbespecified indetailandanopportunitytocheckontheirusemustexist.
¡ Accounting records are maintained locally of all charitablecontributionsandsponsorships.
1.4.5 FACILITATIONPAYMENTS
i. QISJ’s policy is that facilitation payments are discouraged and onlymadewhennecessary.
ii. Where QISJ’s policy permits facilitation payments, it is subject tocompliancewiththefollowingrequirements:
¤ There isnodoubtastotheentitlementofQISJtotheactiontobeperformed.
¤ Thedemanderof the facilitationpaymenthas a clear andnon-discretionaryobligationtoperformthetask.
¤ Thepaymentismodest.
¤ Thepaymentisappropriatelyaccountedfor.
1.4.6 GIFTS,HOSPITALITYANDEXPENSES
QISJdoesnotallowtheofferorreceiptofgifts,hospitalityorexpenses
ifit
(a) influences,orbeperceivedtoinfluence,acontractualormaterialtransactionor
(b) serve,orbeperceivedtoserve,asaninducementtoactinbreachofduty
QISJ:
i. Sets limits/guidelinesonthevalueofgifts,hospitalityorexpensesthat may be given without special authorization from QISJ’sComplianceCommittee.
ii. Provides employees with guidelines on the circumstances underwhich
(a) gifts,hospitalityorexpensesmaybereceivedand
(b) giftsmaybekeptbyEmployeesorshouldbesurrenderedtoQISJ’smanagementfordisposal.
iii. Providesemployeeswith theguidelines for thecomplianceofgifts,hospitalityandexpenseswiththisCode.
iv. All extraordinary expenses / proceeds, falling outside the limits /guidelines set in section 2.4.6, related to gifts, hospitality andexpenses,areaccountedforinaseparategeneralledgeraccountinQISJ'saccountingrecords.QISJconsolidatesallsuchpaymentsmadebyanyofitsoperationsformingpartofitsOrganization.
1.4.7 ACCOUNTINGANDBOOKKEEPING
QISJ maintains accurate books and records which properly and fairlydocument all financial transactions. Off-the-books accounts areprohibited.
1.5 FAIRBUSINESSCONDUCT
1.5.1 QISJ provides guidelines to employees, agents and intermediaries toensure that they understand and adhere to the Business Ethics &CompliancePrinciplegoverningFairBusinessConduct
1.5.2
QISJmaintainsaFairBusinessConductpolicyprohibiting:
i) making untrue statements about competitors, their operations,servicesorserviceofferings
ii) activities contrary to rules for fair competition, anti-trust ortendering
iii) inciting, inducing or encouraging any person to breach itscontractualobligations(includingobligationsofconfidentiality)
iv)commercialespionageand/ordatatheft
1.5.3 QISJ’s presentations and publications accurately and unambiguouslyreflect QISJ’s network and affiliations, resources / capabilities,experienceandservicesprovided.
1.6 HEALTHANDSAFETY
1.6.1 QISJ maintains a policy on Health & Safety that meets all legalrequirements.
1.6.2 QISJprovidesHealth&Safetytrainingtoemployeesappropriatefortheactivitiesengagedin
1.6.3 QISJencouragesemployeestoreportHealth&Safetyrelatedincidents,recordtheseincidents,investigatetheseincidentsandifrequired,takecorrectivemeasures.
1.7 FAIRLABOUR
1.7.1 QISJmaintainsapolicyonfairlabor.
1.7.2 QISJpolicystatesitscommitmenttothefollowing:
i)Compliancewithatleastwithminimumwagelegislationandotherapplicablewageandworkingtimelaws.
ii)Prohibitionofchildlabor–strictlyprohibittheuseofchildlabor
iii)Prohibitionofforcedandcompulsorylabour–prohibitallformsofforcedlabour,whetherintheformofprisonlabour,indenturedlabour,bondedlabour,slavelabouroranykindofnon-voluntarylabor.
iv)Respectofequalopportunitiesintheworkplace
v)Zerotoleranceofabuse,bullyingoranyformofharassmentinthe
workplace.
2. IMPLEMENTATIONOFCOMPLIANCEPRINCIPLES
2.1 IMPLEMENTATION
QISJimplementsaBusiness&ComplianceProgram,basedonthisCode,throughoutitsorganization.PleaserefertotheQISJComplianceManualforfurtherinformationconcerninghowtheProgramisimplemented.
2.2. COMPLIANCEPRINCIPLESANDRULES
2.2.1. TheQISJManagementhasconfirmeditscommitmenttoimplementingthisCodebypublishingtheQISJ’sBusinessEthics&CompliancePrincipleswhich,atleast,reflecttheIFIA/TICCompliancePrinciples.
2.2.2. QISJsends,withinonemonthofpublication,acopyoftheBusinessEthics&CompliancePrinciplesandRuleswhichapplythroughoutitsorganization,andanysubsequentupdatesthereof,totheDirectorGeneralofIFIA/TICforverificationofcompliancewiththeIFIA/TICComplianceCode.
2.3. APPOINTMENTOFCOMPLIANCEOFFICER
TheQISJManagingDirector,whichhasultimateresponsibilityfortheComplianceProgram,hasnominatedamemberofmanagementastheComplianceOfficer,who,irrespectiveofhisotherresponsibilitieshasresponsibilityandauthorityfortheco-ordinationoftheimplementationoftheProgramthroughouttheQISJOrganization.
TheComplianceOfficerreportsdirectlytotheManagingDirector.Additionally,QISJHeadOfficeandInternationalBranchManagershaveresponsibilityforimplementationoftheProgramintheirareaofresponsibility.
2.4. ESTABLISHMENTOFACOMPLIANCECOMMITTEE
TheQISJManagingDirectorhasestablishedaComplianceCommitteetoinitiallycarryoutquarterlyreviewsoftheprogressoftheProgramandprovidepolicyguidance.TheComplianceCommitteeincludestheManagingDirector,theComplianceOfficerandothermanagersrepresentingOperations,Finance,Quality,andAdministration.
2.5. HUMANRESOURCES
2.5.1. RECRUITMENTPrior to job offer, prospective employees of QISJ are informed of theQISJBusinessEthics&ComplianceProgram.
2.5.2. EMPLOYEECOMMITMENTQISJensuresthat:
i. EachemployeeisprovidedwithacopyoftheQISJBusinessEthics&ComplianceCode and is requested to sign a declaration that it hasbeenreceived, readandunderstood. Arecord iskept in the fileoftheEmployee.
ii. Eachmanagerorarealeaderisrequiredtosignanannualdeclaration(see section 2.10.1) that QISJ’s Program has been implemented intheirareaofresponsibility.
iii. Eachemployee is requiredtosign,asaconditionofemployment,aNon-DisclosureAgreementprohibitingthedisclosuretootherpartiesof any confidential business information obtained during his/heremployment.
Employees will not suffer demotion, penalty or any other adverseconsequencesarisingfromstrictimplementationoftheProgramevenifitmayresultinalossofbusiness.
2.5.3. TRAININGAll Employees including Managers of QISJ are required to undergo aComplianceTrainingCoursebasedontheIFIA/TICComplianceTrainingGuide. A Record of course completion is kept in the file of eachEmployee.
2.5.4. CONSULTATIONONCODEDEVELOPMENTQISJ’s Employees could provide input on the development of theProgram during performance evaluations, staff training sessions or atreview meetings (directly, through their superior or through staffrepresentatives)ordirectlytotheComplianceOfficer.
2.5.5. EMPLOYEEPERFORMANCEEVALUATION
QISJensuresthateachEmployeehasanon-goingunderstandingoftheQISJ Business Ethics & Compliance Program during employeeperformanceevaluations.
2.5.6. EMPLOYEE"HELPLINES"
QISJ has established "help lines" where QISJ’s Employees may obtainguidance on any question or matter of concern relating to theimplementation or interpretation of the Program. At the Employee'srequest, any such question shall be dealt with confidentially and theanonymityoftheEmployeeshallbeprotectedtotheextentreasonablypracticable.
DedicatedHelpLine:(81)045-500-6033Ext.11Dedicatedemailaddress:[email protected]
2.6. SECURITYMEASURES
QISJ implements adequate security measures in its organization’s premisescontainingconfidentialbusinessinformationtoensurethat:
(a) Accessisrestrictedtoauthorizedpersonnelonlyand
(b) Documents/dataarestoredindesignatedsecureareasanddisposedofinasecuremanner.
(c) AppropriatecontrolswithUsernamesandPasswordsareinplaceforonlinedatasecurityandprotection.
2.7. EXTERNALCOMMUNICATIONS
QISJensureseffectiveexternalcommunicationsby:
2.7.1. The QISJ Business Ethics & Compliance Code is published onwww.qisjp.comandcopiesoftheCodeareavailablefromanyofQISJ’soffices.
2.7.2. Inquiries, complaintsor feedback from relevant interestedpartiesmaybe made via the web site, email ([email protected]) or to theManagerofeachofQISJ’soffices.
2.8. REPORTINGOFVIOLATIONS
2.8.1. QISJ’s Employees are encouraged to report details of violations orsuspectedviolationstoeither:
(a) TheComplianceOfficerorhis/ernominateddelegate(s)or
(b) The Employee's superior or member of senior management orinternalauditor
Whowill in turn, inform the Compliance Officer or his/her nominateddelegate(s).
The reporting Employee is fully protected against any form of reprisalunless he/she acted maliciously or in bad faith. If requested, theEmployee's anonymity will be protected to the extent reasonablypracticable.
2.8.2. QISJ’sEmployeesarerequiredtoreportanysolicitationfor,orofferof,an improper payment or advantage coming to their knowledge in thesamemannerasprovidedforundersection2.8.1.
2.9. INVESTIGATIONSANDSANCTIONS
2.9.1. The Compliance Officer or his/her nominated delegate(s) initiates,where appropriate, an investigation into any violation of the Programreportedtohim/herorcomingtohis/herknowledge.
2.9.2. The ComplianceOfficermaintains a documented procedure, approvedby the Compliance Committee, for the handling of investigations andsanctionswhichincludesrequirementsfor:
1. The maintenance of records of all reported violations andsubsequentactionstaken.
2. The alleged perpetrator of such violation to have the right to beheard.
3. TheQISJManagement or Compliance Committee to decide on theappropriatecorrectiveanddisciplinarymeasurestobeimplementedif a violation has been established. Thesemeasuresmay include areprimand,demotion,suspensionordismissal.
4. The Compliance Officer to receive progress reports from his/hernominated delegates and/or the management in the locationsconcerned and prepare quarterly summary reports for theComplianceCommitteeon investigations,violationsestablishedandtheimplementationofcorrectiveactionsanddisciplinarymeasures.
2.10. EFFECTIVENESSOFTHEPROGRAMIMPLEMENTATION
2.10.1. MANAGEMENTDECLARATIONSQISJrequiresitsManagersthroughoutitsorganizationtoprepareandsign,on an annual basis, a Compliance Declaration which, as a minimum, isbasedonthetemplatecontainedinAnnexA.
Declarationsaretobereceived,inrespectofallapplicablelocationsand/oractivities,bytheComplianceOfficerbythe15thofFebruaryofeachyear.TheComplianceOfficersubmitsanannualsummaryreporttotheComplianceCommitteeby15thMarch.
2.10.2 INTERNALAUDITSQISJ’sinternalauditors,aspartoftheirinternalauditplan,verifythattheQISJ Business Ethics& Compliance Code has been implementedwithintheorganizationandthattheManagementDeclarations,aspersection2.10.1:
i. havebeencompletedinconformancewithAnnexAand
ii. ReflectcompliancewiththePrinciplesandRulesand
iii. in respect of those locations selected for site audits, correctlyreflect the actual situation. Such site audits shall review theprocesses in place and include testing, on a sampling basis, toensure the effective application and implementation of theProgram. The IFIA/TIC Guidance Check List for QISJ's InternalCompliance Audits will be used for guidance or reference asappropriate.
Thecompliance findings resulting fromsuchauditsare reported tothe Compliance Officer who submits a summary report to theComplianceCommittee.TheComplianceOfficerand/orComplianceCommitteetakesfollow-upactionswhereappropriate.
2.10.3. EXTERNALEXAMINATIONS
2.10.3.1. FREQUENCYTheeffectivenessof the implementationof theProgram isexaminedatleastannuallybyQISJ’sappointedindependentexternalaudit firm.Therequiredscopeof theexaminationisdetailedinsection2.10.3.5.
2.10.3.2. INDEPENDENTEXTERNALAUDITFIRMQISJ’s appointed independent external audit firm to carry-outthisexamination:
i. willbe
(a) either the firm engaged for the audit of QISJ’s(consolidated) financial statements or anotherexternal audit firm entrusted with auditing theProgramand,ineithercase,
(b) a member of the Japan Institute of Certified PublicAccountants (JICPA) or approved by the IFIA/TICDirector General as being appropriately qualified fortheverificationoftheProgram.
and
ii. will be an audit firm with international reach eitherhaving offices in the countries we operate or havepartner companies in these countries employing asimilarauditapproach.
2.10.3.3. USEOFCOMPLEMENTARYEXTERNALAUDITFIRMSi. If, as per section 2.10.3.2(ii), there are countries of
QISJ’soperationwheretheinternationalauditfirmdoesnot have offices and it is necessary to use differentexternal audit firms (which shall comply with section2.10.3.2(i) ),orcorrespondentauditfirmswhichdonotapply a uniform approach and methods, QISJ and itsinternationalexternalauditfirm,arerequiredtoreporttotheDirectorGeneralofIFIA/TIConthearrangementsmade to ensure that a consistent examination of theProgram implementation is achieved in respect of alllocations. In such cases, QISJ’s international externalaudit firmactsas thecoordinatorof theotherexternalaudit firms and prepare one consolidated AssuranceReport.
ii. QISJ’sappointedexternalauditfirmmay,byagreementwith QISJ, utilize the services and reports ofindependent management system certification oraccreditation bodies which have performed audits ofQISJ’s management systems based on internationalstandards. However, such certification andaccreditationbodiesortheirreportsshall
iii. notbeusedfor theverificationof financialandrelatedaspects, included in the Anti-Bribery Rules and section2.11ofthisCode,withoutthepriorapprovaloftheTICCouncil.
2.10.3.4. NOTIFICATIONTOTICOFQISJ'SAPPOINTEDEXTERNALAUDITFIRM(S)Prior to the appointment of the external audit firm(s), orany subsequent proposed changes thereof, QISJ submitsdetailstotheDirectorGeneralof IFIA/TICforconfirmationofcompliancewithIFIA/TICrequirements.
2.10.3.5. SCOPEOFEXAMINATIONFor the purposes of demonstrating that QISJ is inconformance with the IFIA/TIC Compliance Code, QISJrequirestheexternalauditfirmto:
i. Perform,asaminimum,thefollowingassuranceReviewProcedures based on ISA as adapted for the IFIA/TICComplianceCode:
ü Verify that QISJ’s current Business Ethics &Compliance Code remain identical to thosesubmittedto,andapprovedby,IFIA/TIC.
ü Verify that QISJ has established a ProgramincorporatingtherequirementsoftheCode.
ü Observe the existence of internal managementsystems,processesandcontrolsinrespectof
(a) allegedviolations
(b) ComplianceCommitteerecordsand
(c) compliancetraining.
ü Review the following consolidated managementstatements:
« PoliticalContributions
« CharitableContributionsandSponsorships
« Intermediaries'remuneration
« Extraordinary expenditures relating to gifts,hospitality and expenses and verify whetherthesestatements:
² reconcile with the accounting records andsupportingdocumentation
² have been approved by the ComplianceCommitteewhereapplicable.
« Verify that all Management Declarations havebeen received from all Senior Managers asidentified by QISJ including at least one inrespect of each Group Member within QISJ’sGroup Membership (if any) as listed orreferenced in the IFIA/TIC Members Directoryand test the follow-up systems employed forensuring that all matters of concern or reportshave been addressed or acted upon by theComplianceOfficeror,whereapplicable,his/hernominateddelegate(s).
« Reviewanyotherareasandauditproceduresasconsidered appropriate by the external auditfirmandagreedwithQISJ.
ii. Confirm that information relating to the operation ofQISJ’s Compliance Programme is available from eachGroupMemberwithinQISJ’sGroupMembership (if any)aslistedorreferencedintheIFIA/TICMembersDirectory.
iii. PerformtheassuranceReviewProcedures,aspersection2.10.3.5(a), by audit sampling in respect of both QISJ’slocationsand thesystemsanddocumentationapplicableto those locations. The audit sampling is to be agreedbetween theauditorandQISJ,baseduponacompliancerisk assessment and considering the QISJ’s organizationandpeculiarities.
iv. Maximize the use of the services of QISJ’s CorporateInternalAudit functionand/or InternalQualityAuditorsto avoid duplication of efforts and minimize additionalcosts.
2.10.3.6. EXTERNALAUDITFIRM'S“ASSURANCEREPORT”
i. QISJ requires the external audit firm to issue anAssurance Report based on the Proforma Assurance
Report contained in Annex C, which is provided forguidanceandmaybeadjustedasconsideredappropriateby theexternalaudit firmand/orasmayberequiredbyprofessionalstandards.
ii. QISJ instructs theirexternalaudit firmtosendacopyoftheirAssuranceReporttotheDirectorGeneralofIFIA/TICwithin6monthsofQISJ’sfinancialyear-endclosingdate.
2.10.3.6.1. REPORTABLECONDITIONS
Significant deficiencies in the design or implementation ofQISJ’s Compliance Programme that adversely affect QISJ’sability to ensure conformity with the IFIA/TIC ComplianceCodeshouldbedeemedreportableconditions.
These reportable conditions, which are detected by theexternal audit firm during performance of the AssuranceReview Procedures, shall be reported in the AssuranceReportregardlessifQISJhasalreadytakencorrectiveaction.
Theexternalauditfirmshallnotberequiredtoincludeanyminornon-conformitiesdetectedintheirAssuranceReport.These shall be communicated separately only to QISJ’smanagementincludingtheManagingDirectorforcorrectiveactionwithinthetimeframestipulatedbytheauditor.
2.11. APPLICATIONOFTHEQISJ’SPRINCIPLESANDRULESINBUSINESSRELATIONSHIPS
ToensurethatQISJ’sBusinessEthics&CompliancePrinciplesandRules are applied, to the extent appropriate, in its businessrelations with parties external to the organization such asintermediaries, joint venture partners, agents andsubcontractors, contractors and suppliers, the ComplianceCommitteedevelopsanddistributesappropriateprocedures/workinstructions.Theseproceduresincorporatethefollowingrequirements:
2.11.1. INTERMEDIARIESToensure
(a) theIntermediary'scompliancewiththeQISJBusinessEthics&ComplianceCodeand
(b) avoidimproperpaymentsbeingchanneledthroughIntermediaries,QISJincludes:
2.11.1.1. PriortoappointinganIntermediary,orrenewingorsubstantiallyrevisingthetermsoftheappointmentofanIntermediaryappointedpriortotheentryintoforceofthisCode,conductduediligencewhichincludes:
i. Ariskanalysis
ii. AninterviewwiththeIntermediary
iii. ProvidingtheIntermediarywithacopyoftheQISJBusinessEthics&ComplianceCodeandrequestingconfirmationthat,intheeventofhis/her/itsappointment,orre-appointment,she/he/itacceptsthather/his/itscontractwithQISJrequireshis/her/itsfullcompliancewiththePrinciplesandRulesandallowthatthismaybeperiodicallyverifiedbyQISJ.
iv. AninvestigationoftheIntermediary'sbackgroundwhich,forIntermediariesrequiredtodealwithgovernmentofficials,isperformedbyanindependentinvestigatorandthefindingsreviewedandapprovedbytheComplianceCommittee.
v. AverificationthatthecompensationpaidtoeachIntermediaryisanappropriateandjustifiableremunerationforlegitimateservicesrendered,anddoesnotfacilitateimproperpaymentsbyanIntermediary,through:
« Aremunerationanalysis.Thismayinclude,whereappropriate,considerationof:
ú theremunerationofotherIntermediariesalreadyusedbyQISJforperformingasimilarfunction
ú quotationsfromotherprospectiveIntermediaries
ú localmarketinformationonratespaidtoIntermediaries
ú justificationfortherateproposedfortheprospectiveIntermediary,and
ú Areviewoftheremunerationanalysisand,forIntermediariesrequiredtodealwithgovernmentofficials,anapprovalbytheComplianceCommitteepriortoappointmentoftheprospectiveIntermediaries.
2.11.1.2. MonitortheIntermediary’scontinualcompliancewithQISJ’sBusinessEthics&ComplianceCodeand,intheeventofbreach,takeremedialactionwhichcould,forseriousbreaches,resultinterminationofthecontract.
2.11.1.3. Whereappropriate,undertaketoprovidetrainingandsupporttotheIntermediary.
2.11.1.4. Maintainrecordsoffulfilmentoftheabove-mentionedrequirements,includingacopyofthecontractwiththeIntermediary,integratingtheQISJBusinessEthics&CompliancePrinciples.
2.11.1.5. Accountfortheintermediaries'remunerationinaseparategeneralledgeraccountinQISJ’saccountingrecords.QISJconsolidatesallsuchpaymentsmadebyanyofitsoperationsformingpartofitsorganization.
2.11.1.6. Prepareannuallyaconsolidatedmanagementstatementofintermediaries'remuneration.
2.11.1.7. NotdealwithprospectiveIntermediarieswhichitknowstobeinvolvedinbribery.
2.11.2. JOINTVENTUREPARTNERS
2.11.2.1. QISJconductsduediligenceofprospectivejointventurepartner(s),asoutlinedinsection2.11.1.1.
2.11.2.2. QISJdoesnotdealwithanyjointventurepartner(s)whichitknowstobeinvolvedinbribery.
2.11.2.3. QISJmonitorsthejointventurepartner’scompliancewiththeQISJ’sBusinessEthics&CompliancePrinciplesthroughmonitoringofitsconductand,asappropriate,periodicverification.
2.11.3. AGENTSANDSUBCONTRACTORS
2.11.3.1. QISJundertakesduediligenceofprospectiveagentsandsubcontractors,asoutlinedinsection2.11.1.1.
2.11.3.2. QISJprovide,whereappropriate,trainingforagentsandsubcontractors.
2.11.3.3. QISJdoesnotdealwithagentsandsubcontractorswhichitknowstobeinvolvedinbribery.
2.11.3.4. QISJmonitorstheagent'sorsubcontractor'scompliancewiththeQISJBusinessEthics&CompliancePrinciplesandRulesthroughmonitoringofits/theirconductand,asappropriate,periodicverification.
2.11.4. CONTRACTORSANDSUPPLIERS
2.11.4.1. QISJconductsitsprocurementpracticesinafairandtransparentmanner.
2.11.4.2. QISJundertakesduediligenceperSection2.11.1.1inevaluatingmajorprospectivecontractorsandsuppliers.TheComplianceCommitteeprovidesguidancetoEmployeesonthedefinitionof"majorprospectivecontractorsandsuppliers"andthescopeofduediligence.
2.11.4.3. QISJmakesknownitsBusinessEthics&CompliancePrinciplestomajorcontractorsandsuppliers.
2.11.4.4. QISJavoidsdealingwithcontractorsandsupplierswhichitknowstobeinvolvedinbribery.
2.12. COMPLAINTSANDDISCIPLINARYPROCEDURES
Complaintsconcerningallegednon-CompliancewiththeIFIA/TICComplianceCode(Secondedition)byothermembersofIFIA/TICshallbelodgedwithIFIA/TICinaccordancewiththeIFIA/TICComplaintsandDisciplinaryProcedures.
QISJrefrainsfromsubmittingsuchcomplaintstootherpartiesunlessitisnecessarytodosotoprotectQISJ’sreputation.