Compliance

KDDI is improving and reinforcing its compliance structures, based on its belief that compliance with the law―including strict observance of the privacy of communications by telecommunications providers as established in the Telecommunications Business Law―is fundamental to business operations. In addition to establishing the KDDI Code of Business Conduct to ensure that all employees maintain a high sense of ethics and execute their duties appropriately, we are undertaking the following efforts to raise compliance awareness.

• Conducting activities to instill our corporate philosophy, the KDDI Group Philosophy
• Cultivating a sense of organizational togetherness and improving communications
• Performing activities to detect early on, analyze, and prevent violations
• Blocking any relationships with anti-social forces

We have put in place the KDDI Group Business Ethics Committee, headed by the chairman of KDDI, to deliberate and make decisions on compliance-related items. The committee meets semi-annually to ascertain the situation at each company and support the establishment and reinforcement of compliance structures.

The KDDI Group Business Ethics Committee also formulates policies for educational activities and, in the event a compliance violation occurs, discloses information outside the Company and deliberates on measures to prevent recurrence.

The status of the committee's activities is made available to all employees via the intranet.

KDDI established the Business Ethics Helpline to serve as a contact point for all employees with questions or concerns about business ethics and legal compliance. By establishing a contact point in collaboration with external experts, the Company is creating an environment in which it is easy for employees to report concerns. Furthermore, we have established internal regulations in response to the Whistle-Blower Protection Act, enacted in Japan in April 2006, and actively conduct educational activities on this topic.

In FY2014, the helpline received 23 reports, including inquiries. Internal investigations were conducted primarily by the KDDI Group with regard to the issues reported, and information regarding reporters was kept confidential. When problems were uncovered, steps were taken to rectify the situation, including proposing improvements and instituting measures to prevent recurrence.

People who make use of the whistle-blowing system were not subjected to disadvantageous treatment.

Our Basic Policy for the Creation of Internal Systems takes a firm stand on countering anti-social forces. In addition to rules defining initiatives for blocking off any relations with such forces, the KDDI Code of Business Conduct, which defines basic principles to be followed and enforced by all executives and employees, takes a firm stance against anti-social forces, rejecting any requests for illicit funds and refusing to comply with any demands.