Compliance

To realize K-ESG management, we share a common set of values codified in our Corporate Principles and Charter for Action & Code of Conduct, and our fundamental policy is that we faithfully adhere to laws and internal rules, but also to ethical and moral standards. Compliance forms the foundation for a company to achieve continuous growth, and so to promote it, we have come up with a three-pronged approach: fostering awareness, gaining knowledge, and constructing systems. In line with this approach, we are ensuring thorough compliance through such measures as training and education, rules, and an internal control system.
Moreover, to warrant the trust and confidence placed in us by customers and other stakeholders, and to give back to society, it is important that we perform our work honestly and sincerely, without lies or falsehoods. On this point, we are striving to transform some words that Kubota’s founder valued—“One must hold integrity and morality in high esteem”—into our corporate culture. It goes without saying that we must adhere to laws and regulations, but integrity and morality are equally vital in this age of compliance, and we believe them to be the basis of our corporate activities.

• 

  Promotion Framework

All the employees working for the Kubota Group, including those overseas, are required at the time of joining the Group to submit a written “Confirmation Statement” that they will comply with the Kubota Group Charter for Action & Code of Conduct, and the corporate principles, the Kubota Global Identity.
Furthermore, various tools for education and awareness-raising are prepared with the aim of fostering a mindset based on compliance and the corporate principles. For more information, please refer to the following link and the Kubota Group Integrated Report / ESG Report.

• Kubota Group Charter for Action & Code of Conduct
• Kubota Group Integrated Report / ESG Report

• Internal Control System

The Kubota Group is engaged in efforts to prevent any corrupt practices. It has placed particular focus on preventing bribery among risk management activities on the preventing of illegal payment, and will work to achieve SDGs Target 16.5: Substantially reduce corruption and bribery in all their forms.
Amid increasing international moves to anti-bribery, we marked December 9 – designated by the United Nations as International Anti-Corruption Day – by broadcasting a President’s Message to all Kubota Group officers and employees every year. In the message, our top management made a clear commitment by declaring that ‘KUBOTA Group never allows business based on unfair practices such as bribery.’
As part of efforts to prevent corruption, the Kubota Group is working to establish and enforce rules for pre-consultation on opportunities suspected of involving bribery, including small bribes. Also, to ensure effectiveness, we are strengthening and enforcing education and awareness activities for officers and employees, especially those stationed at overseas locations. Specifically, as part of our anti-bribery education for officers and employees, we run training based on concrete case studies involving the bribery of foreign public officials, along with workshops and e-learning sessions both in Japan and overseas. To deepen understanding of the laws, incidents, and enforcement status in each country, we extensively incorporate explanations by lawyers. By doubling down on pre-consultation rules and conducting regular and continuous training, we aim to cultivate an awareness of bribery prevention and ensure the circulation of the latest information.
Furthermore, we have prepared a handbook^*, and we issue newsletters throughout the year, among various measures to introduce various information such as laws, regulations, and case studies related to bribery prevention, embezzlement, and facilitation payments, etc., to the entire Group in and effort to prevent bribery and ensure widespread awareness.
In addition, as an initiative directed outside the company, a ‘Request to Suppliers’ was posted on the Kubota website in the name of the General Manager of the Corporate Compliance and Risk Management Headquarters. The text outlined to suppliers the Kubota Group’s approach to bribery prevention and asked for their understanding and cooperation in bribery prevention activities.
From the end of 2023, we have rolled out operation of a global hotline for overseas bases. In this way, we are working to enhance our internal reporting system with the aim of facilitating early detection and prevention of bribery and other improper activity.
To verify these risk management activities, the Kubota Group has established the Committee on Prevention of Illegal Payments. In FY2024, document surveys were conducted at 13 companies in Japan and 34 overseas bases to investigate whether preventive frameworks were in place and sufficiently functioning, as well as whether there were any illegal payments.
The policies for these risk management activities and the results are periodically reported to the Board of Directors through the Kubota Group Risk Management Committee. Based on the feedback provided, the content of risk management activities is reviewed to improve the overall level.

• We have put together a Kubota Group Handbook for Anti-Bribery which is being issued across the entire Group. The Handbook is issued in a global version with universal content available in Japanese, English, French, Chinese, and Thai.

• Information Security

• Tax Policy

As cyberattacks yearly grow more sophisticated and more complex, Kubota is aware that the appropriate protection and management of the personal information of its customers and other stakeholders is an important social responsibility. In addition, we are working to appropriately manage personal information not only under Japanese law, but also overseas laws and regulations.

To ensure the reliability of financial reporting for the Kubota Group overall, including overseas subsidiaries, we have established and operate an internal control system. Moreover, to confirm its effectiveness, the Corporate Auditing Department and the auditing divisions of subsidiaries conduct regular internal audits. Based on the results of these audits, we have built a system for evaluating the effectiveness of internal controls on a consolidated basis in conformance with the internal control and reporting system (J-SOX), etc., pertaining to financial reporting as stipulated by the Financial Instruments and Exchange Act.

We realize that full implementation of compliance is key to establishing Kubota as a Global Major Brand. The Kubota Group therefore engages in the risk management activities set out below to ensure prevention of any infringement of Japan’s Anti-Monopoly Act and the competition laws of overseas countries as well as the Subcontract Act.