Anti-corruption

Promoting sound organizational management and fair business practices is extremely important in order to make our corporate philosophy a lasting reality throughout the Group.
The Yakult Group operates in full compliance with the anti-corruption laws, regulations, guidelines and guidance applicable in the countries and regions in which we operate and has put in place our anti-corruption policy based on the Yakult Ethical Principles and Code of Conduct, a Group-wide set of guidelines for compliance. We comply with all internal rules relating to this policy and the Yakult Ethical Principles and Code of Conduct.

Compliance Committee

Our Compliance Committee, established in 2000, is composed of independent outside experts. This committee regularly meets with directors of Yakult Honsha to discuss such themes as the compliance promotion situation of each department. Members provide wide-ranging opinions and recommendations related to overall corporate activities from the perspective of compliance, as well as practical advice regarding the theme of each meeting.
In fiscal 2023, the committee met in September to discuss the status of accounts and finances as well as our progress toward the quantitative goals of our medium-term management plan, and again in February to discuss the status of our compliance promotion initiatives.

Corporate Ethics Committee

Our Corporate Ethics Committee, established in 2002, is primarily composed of independent outside experts. This committee convenes regularly for checking on the implementation status of our corporate ethics activities (such as refusing to engage with organized crime groups). Through oversight by committee members, we work on ensuring sound management. In fiscal 2023, this committee met in May and December.

Internal reporting system

In Japan, we set up the Yakult Compliance Hotline in 2006 as an internal reporting system for quickly discovering and correcting any violations of laws and internal rules during the execution of business.
Through this system, we accept reports, consultations and other feedback from directors and employees (including those who have stepped down or retired within the past year) at Yakult Honsha, Group companies and associations. Additionally, since fiscal 2022 we have expanded the scope of this system so that it can also be used by marketing companies other than Group companies.
We have established internal and external (consulting law office) contacts to operate this hotline, and have ensured the protection of whistleblowers through Internal Reporting Regulations that assure the confidentiality of reported information and prohibit the adverse treatment of whistleblowers.
We conduct periodic compliance surveys every three years to verify the level of awareness of this internal reporting system within the Group. According to the results of our most recent survey in fiscal 2023, awareness is at 90.6%.
Employees are informed about this system during training for new employees and level-specific training, as well as regularly via groupware. We also gather feedback from employees via the aforementioned compliance surveys.
In addition, we are striving to ensure this system’s effectiveness by raising awareness of the system among management and eligible persons at the Company and Group companies that have implemented it and educating people about how to use it.
Structurally speaking, the internal reporting system has an internal and an external contact point. Whenever a report is received, the Compliance Promotion Team investigates the facts while protecting the identity of the reporter in accordance with laws and company regulations. If the team determines that there is an issue, it guides and monitors a full response, including issuing a request for correction and measures to prevent reoccurrence via the representative or person responsible at the organization in question. This response and its results are reported not only to the President of the Company and the relevant director but also to the Compliance Committee, which offers evaluations and guidance.
In Group companies outside Japan, we have established internal reporting systems at 14 business sites.

Number of reports made via internal reporting system in the last five years (includes consultations, questions, etc.) (Yakult Compliance Hotline)

Fiscal	2019	2020	2021	2022	2023
Number of reports	9	9	16	14	24