Group Shared Policy on Fraud and Defalcation Prevention

Ajinomoto Group
Established on : July 1, 2018

1. Purpose

Written policies are integral to the corporate governance structure as a listed company, providing employees with guidance from the board and management’s expectations on appropriate behavior. This accounting related fraud and defalcation policy is established to make clear the managements’ stance towards detection and prevention of fraud against us.

2. Responsibility

Management is responsible for the detection and prevention of fraud and defalcation. All employees are expected to adhere to the highest levels of honesty, integrity and ethics at all times when conducting business.

3. Types of Fraud

The followings are the examples of accounting related fraud and defalcation:

a )  Engaging in fraudulent conduct involving the defalcation of the Group’s assets.

b )  Engaging in fraudulent or any other dishonest conduct involving financial reporting of the Group, including the misstatement such as below.
– Altering manufacturing cost (to be motivated or under pressure) to meet a performance goal
– Falsely report sales to phantom customers or customers which are not authorized

c )  Management or employees divulge to another person material information to make a gain for themselves or another.

4. Company Stance

  • Ajinomoto Group has a zero-tolerance policy against any kind of fraudulent business practice related to accounting matter.

  • Employees are expected to properly and without delay report all known or suspected instances of fraud through the channels described in the Ajinomoto Group Policies (AGP).

  • Notification must be given whether the fraud is committed by an employee against the Group or against an entity doing business with the Group, or by an outside party against the Group.

  • Employees committing an act of fraud will be subject to disciplinary action. We will usually pursue all appropriate legal remedies against employees or outside parties involved in fraudulent business practices.

  • To the extent permitted under applicable law, the Group reserves the right to monitor and inspect how its assets are used by employees, including inspection of all e-mail or data which are kept on Group network terminals.