Ensuring thorough compliance

The Compliance Committee, chaired by the director responsible for Legal and Compliance, is tasked with planning and verifying measures to prevent misconduct, as well as developing and assessing inspection and investigation procedures. Furthermore, the committee comprises 9 members, including directors, independent outside director (who serve as Audit and Supervisory Committee member) with legal qualifications, and executive officers. It is structured to facilitate advice from external legal counsel.
Additionally, to ensure the appropriateness of operations, the Committee manages matters regarding compliance and internal control, guarantees a strong sense of ethics in business activities, and strives to ensure the legal compliance and implementation of the corporate governance structure. Furthermore, responses to compliance risks are optimized by performing cross-organizational, Groupwide assessments and evaluations of these risks.

As part of the PPIH Group's initiatives to strengthen compliance, the Group has established a "Compliance Hotline" for employees as an internal reporting channel for various compliance violations, including bribery and other corrupt practices, regardless of whether such acts constitute legal violations. This hotline also covers breaches of internal rules and regulations. The Compliance Hotline consists of two channels--one operated by an external law firm and another managed internally--allowing employees to choose the channel through which they submit reports. In addition, in order to maintain appropriate and sound relationships with business partners, the Group has established a "Partner Hotline" and a "Freelancer Hotline", enabling business partners and freelancers to share any concerns they may have regarding the conduct of our Group's employees in charge of transactions. The Group takes such feedback seriously, works promptly to make improvements, ensures fair transactions, and strives to build stronger relationships of trust with its partners. These hotlines are operated in accordance with internal regulations, and matters deemed important are reported as necessary to the Board of Directors and the Audit and Supervisory Committee. All information reported through these hotlines is handled with strict confidentiality. Anonymous reporting is permitted, and reports via email are accepted 24 hours a day. Internal regulations clearly stipulate that whistleblowers will not be subject to any form of disadvantage, including dismissal, retaliation, or deterioration of the workplace environment, as a result of making a report, and thorough protection of whistleblowers is ensured. Furthermore, the employee Compliance Hotline is proactively communicated through monthly internal newsletters, recurring compliance training sessions, and internal posters, thereby fostering an environment in which employees can readily access the hotline whenever necessary.

The establishment of a consultation service

Framework of reporting from business partners

We promote awareness of the various hotlines by utilizing multiple communication channels, including displaying posters within the company and providing information in booklets distributed at the time of contract signing.

The Group conducts training by rank with the aim of raising compliance awareness and preventing the occurrence of incidents. In addition to inviting outside lecturers to provide training for Executive officers on compliance risks that should be considered in management, we also conduct monthly e-learning compliance training for employees (full-time employees and contract employees*) in order to ensure thorough corporate compliance throughout the organization.

* UNY Co., Ltd. and UCS Co., Ltd. conduct compliance training for full-time employee

2020 Insider Trading Prevention
2022 Regulations on Bribery
2023 Harassment Prevention
2025 Harassment Prevention
　 　 Information Security

Training for employees covers various topics related to the Group's business risks and materiality issues, and periodic tests are conducted in order to ensure that each and every employee has a thorough understanding.

(FY2025)
Monthly average number of participants：9,543
Monthly average attendance rate：86.7%
*December figures are not yet available, so the average is calculated based on 11 months.

Our Corporate Philosophy "The Source" states, "We commit ourselves to doing business in a manner that is unselfish, 100% honest, and grounded in a strong sense of morality and purpose. "In order to practice sound and fair business activities, we are thoroughly implementing group-wide anti-corruption initiatives in accordance with our corporate philosophy and code of conduct "The Source," and the "PPIH Group Anti-Corruption Policy," which was established with the approval of the Board of Directors. Specifically, the Group strictly prohibits all forms of corruption and misconduct, including the receipt of personal benefits or favors from business partners, bribery, illegal political contributions, money laundering, embezzlement, and any other corrupt or fraudulent acts. If any act that may constitute corruption is discovered, employees are required to report it through the Compliance Hotline. In cases where serious violations are identified based on the reported information, the matter is reported to the Board of Directors, and disciplinary actions are imposed in accordance with internal regulations. Furthermore, for business partners that serve as private brand manufacturing contractors, the Group requests thorough compliance with anti-corruption measures through adherence to the "PPIH Group Supply Chain Code of Conduct" and through self-assessment questionnaire surveys that confirm compliance with the Code.

The PPIH Group has established the "PPIH Group Tax Compliance Policy" with the approval of the Board of Directors in order to fulfill its proper tax obligations in each of the regions in which the Group operates. In accordance with this policy, the PPIH Group will disclose its tax status appropriately. We do not use tax havens for the purpose of tax avoidance.

(Unit：Million Yen)

* Net sales are based on the location of customers and are classified into countries or regions