COMPLIANCE

At Mazda, the concept of compliance applies not only to laws and regulations but also includes adherence to other rules, such as internal guidelines and social norms and expectations. Business operations are conducted in accordance with the Mazda Corporate Ethics Code of Conduct to ensure fair and honest practices.The Global Employee Engagement Survey, which includes a questionnaire concerning compliance, is conducted to check 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 (police, lawyers, etc.) when necessary, to combat such demands.

For its efforts to prevent corruption, Mazda presents its basic policies on anti-corruption in the Guidelines on the Mazda Corporate Ethics Code of Conduct. Also, Mazda has established the Guidelines on Entertainment and Gifts, which lays out the policy for prohibiting bribery, to promote highly transparent and fair transactions with all partner companies. These guidelines are revised as needed to cope with changes in the social environment, social needs, or other circumstances. Overseas as well, Mazda complies with international regulations and the laws of each country and region, and also respects local history, culture, and customs. When Mazda makes political contributions, it adheres to the Political Funds Control Act and follows necessary internal procedures.

【Statistics from FY March 2024】

• Political contributions (Donations) of 21 million yen
• No incidents of fines for bribery, etc.
• No incidents of employees of Mazda Motor Corporation being subject to disciplinary measures for engaging in corruption

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 the Company and outside (attorney’s office), the hotline enables Mazda Group employees to choose a contact point to submit their reports to 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. The Company distributes Compliance Cards with the contact information for the hotline to all employees during compliance education programs. As part of its efforts to make the hotline better known to everyone, Mazda also puts up posters and implements e-learning programs. In addition, information on the use of the hotline is disclosed. 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 2024】

Number of reports (including consultations) through the Mazda Global Hotline of 53

Social data (Number of reports through the Mazda Global Hotline in FY March 2024)

Mazda believes that mere adherence to laws and regulations is not enough; it is important to have each and every employee understand the essence of such laws and regulations and to practice integrity. In response to the changes in the social environment and social needs, the Company provides voluntary learning opportunities using e-learning, organizes compliance seminars for executives and middle managers of Mazda as well as Group company executives conducted by internal and external lecturers, and provides 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 and other relevant rules and regulations. It is an important duty of a good corporate citizen to pay taxes in an appropriate and timely manner in accordance with international rules, the laws and regulations of relevant countries and regions, and the Company’s Finance Control Guidelines. With this in mind, Mazda contributes to social development in each country and region by voluntarily fulfilling its tax obligations.

The Mazda Group supports the Base Erosion and Profit Shifting (BEPS) initiatives, which are promoted by the Organisation for Economic Co-operation and Development (OECD) and the G20 countries. The Group will not engage in tax evasion behaviors through the abuse of tax havens, but will rather sincerely cooperate with requests for information disclosure from the tax authorities of relevant countries to ensure tax transparency. In its global business operations, Mazda is well aware of the importance of transfer pricing taxation as a means of determining proper profit sharing among Group companies in the respective countries. The Mazda Group is committed to practicing transparent and fair transfer pricing by promoting active dialogue with tax authorities through effective use of advance pricing agreements.

The Group 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, Mazda systematically promotes the enhancement of compliance among dealerships and parts sales companies in Japan based on the understanding that compliance functions as the foundation for building its brand.

•  A risk and compliance site has been set up on the intranet used by all dealerships in Japan in order to promote understanding of compliance and internal controls among dealership employees and thereby facilitate appropriate practices. The site provides the “Standard Operating Procedures” and “Model Regulations,” which define the basic business operations to be performed by dealerships; “One-Point Lessons on Compliance,” concerning a training tool with relatable case studies; “Learning from Other Companies,” which records the true causes of accident cases and recurrence prevention measures; and education tools that help ensure legal compliance in business activities. In addition, sites provided for parts sales companies offer information pertaining to human rights.
•  Questions encompassing risks concerning new standard operating procedures, internal control risks and examples of recent accidents have been added to the Self-Diagnosis Checklist on Internal Controls, which is deployed throughout the Mazda Group. By enabling dealerships and parts sales companies to autonomously identify issues, challenges, and best practices, this checklist helps supports the promotion of dealership and parts sales company management in compliance with related laws and rules and the improvement of work efficiency. The best practices and issues identified using the Self-Diagnosis Checklist on Internal Controls are quickly shared with other organizations to promote activities for preventing the materialization of risks.
•  At training sessions and meetings with dealerships and parts sales companies in Japan, we seek to raise the awareness of trainees to fully implement measures for identifying inadequacies in compliance and internal controls and preventing the recurrence of similar problems. Examples of these inadequacies are also shared with related parties and relevant investigations are carried out.
•  For immediate reporting of problems regarding compliance, internal controls, human rights, and distribution of information via social media, an in-house consultation contact point has been set up at dealerships in Japan, and awareness of the Mazda Global Hotline reporting system is promoted among dealership employees.