COMPLIANCE

At Mazda, the concept of compliance applies not only to laws and regulations but also refers to building a brand foundation that emphasizes adherence to internal guidelines and responsiveness to social norms and expectations. Based on this approach, business operations are conducted in accordance with the Mazda Corporate Ethics Code of Conduct to ensure fair and honest practices. The Mazda Corporate Ethics Code of Conduct was established in 1998 with the approval of the Board of Directors, and has been revised as needed thereafter. In addition, the Global Employee Engagement Survey is administered on a regular basis to confirm employees' degree of understanding of compliance.

Mazda practices a strict policy of non-association with antisocial forces and organizations and will under no circumstances lend aid to such entities. Inappropriate demands from antisocial forces and organizations will be met with a resolute response as we take organizational measures, including coordination with external organizations (e.g., police, lawyers, etc.) when necessary, to combat such demands.

Compliance Promotion Framework

Mazda has established the Risk & Compliance Committee to oversee Companywide compliance activities in accordance with the Mazda Corporate Ethics Code of Conduct. Meanwhile, division heads are assigned responsibility for promoting compliance as part of our frameworks for ensuring compliance throughout the organization.

Twice a year, the Risk & Compliance Committee issues reports to the Executive Committee Meeting, which is comprised of the president and other executives, and also reports to the Board of Directors on matters including progress in responding to serious compliance issues that have been identified, implementation of the internal reporting system (Mazda Global Hotline), and compliance training programs.

Major Compliance Activities

Mazda presents its basic policies on anti-corruption in the Guidelines on the Mazda Corporate Ethics Code of Conduct. In addition, the Company has established the Guidelines on Entertainment and Gifts, which lays out its policies for prohibiting facilitation payments and other forms of bribery to promote highly transparent and fair transactions with all partner companies. Compliance training for employees includes e-learning programs on themes such as anti-corruption (entertainment and gifts) and prevention of violations of fair competition laws (including bribery of public officials). Meanwhile, the Mazda Supplier Sustainability Guidelines contain anti-corruption provisions pertaining to suppliers, and we ask that suppliers adhere to these guidelines. When making political contributions, Mazda adheres to the Political Funds Control Act and follows appropriate internal procedures. Overseas, Mazda complies with international regulations and the laws of the relevant countries and regions while also respecting local history, culture, and customs. These guidelines are revised as necessary to accommodate changes in social trends and expectations.

【Statistics from FY March 2025】

Internal Reporting System

The Company has established the Mazda Global Hotline as an in-house system for receiving reports regarding compliance and other issues. With its contact points set up both inside and outside (an attorney's office) of the Company, the hotline enables Mazda Group employees to choose a contact point to which to submit their reports either under their real names or anonymously. The content of these reports is carefully handled, and the whistleblowers' confidentiality is completely protected. In so doing, Mazda takes sufficient follow-up measures to ensure that those who make reports to the hotline or who cooperate in an investigation will not be subject to unfavorable treatment. After taking steps to confirm the validity of reports, corrective and recurrence prevention measures will be implemented to address any compliance violations or misconduct identified. The start of investigations, as well as results of investigations and validity confirmation and details of corrective measures, are communicated to the whistleblower. To spread awareness and understanding regarding the hotline, the Company distributes Compliance Cards with the contact information for the hotline to all employees and informs employees of the hotline through compliance e-learning programs and posters. The Mazda Global Hotline is also introduced to suppliers so they can receive consultation regarding any doubts that may arise during transactions with Mazda or with Mazda Group companies.

【Statistics from FY March 2025】

Social data (number of reports through the Mazda Global Hotline)

Mazda believes that mere adherence to laws and regulations is not enough to guarantee effective compliance; it is important to ensure that each and every employee understands the essence of such laws and regulations and acts with integrity. For this reason, we regularly provide employees with voluntary learning opportunities using e-learning programs, organize compliance seminars for middle managers and executives of the Company as well as for the executives of affiliates conducted by internal and external lecturers, and supply information in a timely manner as part of ongoing initiatives aimed at increasing awareness of the importance of compliance.

The Mazda Group practices integrity with regard to tax affairs in keeping with the Mazda Corporate Ethics Code of Conduct. We recognize that, as a good corporate citizen, we have an important obligation to pay taxes in an appropriate and timely manner in accordance with international rules, the laws and regulations of relevant countries and regions, and Mazda's Finance Control Guidelines. Based on this recognition, Mazda fulfills its tax obligations to contribute to social development in the countries and regions where it does business. The Mazda Group also supports the measures for avoiding base erosion and profit shifting promoted by the Organisation for Economic Co-operation and Development (OECD) and the G20 countries. Accordingly, the Group will not engage in tax evasion through the abuse of tax havens. Rather, we will sincerely cooperate with requests for information disclosure from the tax authorities of relevant countries to ensure tax transparency. Mazda also understands the importance of transfer pricing taxation as a means of determining proper profit sharing among Group companies operating in different countries as part of its global operations. For this reason, we are committed to practicing transparent and fair transfer pricing by promoting active dialogue with tax authorities through effective use of advance pricing agreements and other measures. Going forward, Mazda will continue to build trusting relationships with the tax authorities in relevant countries and enhance tax compliance from a global standpoint, while taking into account changes in the social environment and needs regarding tax affairs.

To support transparent management at all Mazda Group companies, we systematically promote the enhancement of compliance at dealerships and parts sales companies in Japan to prevent misconduct.