Compliance System

The Company has established the Risk Management Compliance Committee, which operates as an organ directly under the control of the Board of Directors and functions as the secretariat of the Administration Department. The primary objective of this committee is to prevent the occurrence of risks that could impact the Company's management, as outlined in the Risk Management Regulations and Compliance Regulations. In addition, the committee aims to minimize damage in the event of a compliance crisis or emergency by responding promptly and appropriately. This proactive approach is designed to contribute to the smooth operation of the business.
Furthermore, the Company has set up an Internal Audit Office that operates independently from the various business divisions. This office is responsible for monitoring and verifying compliance across the Group. The designated individual in charge of this office provides regular reports to the President and other relevant parties. This framework is established to ensure a robust oversight of compliance within the organization.

Whistleblowing system

To ensure that employees adhere to laws, regulations, and the Articles of Incorporation, the Company has put in place a comprehensive framework that includes risk management regulations, compliance regulations, and a code of conduct. These regulations and guidelines serve as a foundation for employee conduct and compliance with legal and corporate requirements.
In addition to these regulations, the Company has established whistleblowing regulations. This whistleblowing system provides a reporting mechanism for employees who encounter situations where violations of laws, regulations, or the Articles of Incorporation occur. It allows employees to report such violations while protecting their identity, ensuring that any breaches of compliance are promptly addressed and rectified. The implementation of these systems and regulations highlights the Company's commitment to maintaining a high standard of ethics, integrity, and legal compliance throughout its operations.

The Company has established the Internal Audit Office as the designated contact point for whistleblowing. When an employee makes a report to the Internal Audit Office, all such reports are reviewed by the Risk Management & Compliance Committee, which includes key executives such as the President and Representative Director, other officers, the General Manager of the Corporate Planning Office, and the General Manager of the Internal Audit Office. The Committee conducts investigations and takes necessary actions based on the findings of the reported incidents.
It's important to note that the Company's whistleblowing regulations ensure the confidentiality of the content of reports and prohibit any retaliatory or disadvantageous treatment towards whistleblowers due to their act of reporting. The Company believes that the current whistleblowing system is functioning effectively. However, the Company is open to considering the establishment of an independent contact point separate from its management in the future. This demonstrates the Company's commitment to fostering a culture of transparency, accountability, and ethical conduct.

Daytona Code of Conduct

The Company has taken steps to ensure that employees are well-informed about and practice legal compliance in their business activities. To facilitate this, a booklet of action guidelines, titled "DAYTONA BRANDING VALUE," has been prepared and distributed to employees. This booklet serves as a detailed breakdown of the "Action Guidelines" and "Corporate Philosophy," making them more accessible and understandable for all employees.
What's unique about "DAYTONA BRANDING VALUE" is the use of animal illustrations, which provide visual and intuitive representations of the guidelines and principles. This approach is intended to make it easier for employees to comprehend, remember, and relate to the content, reinforcing a culture of compliance and ethical behavior throughout the organization.