Sustainability

The Group has identified "compliance management" as a key business priority, and we are actively pursuing related initiatives. In order to foster compliance management and embody the company mission of the Open House Group, we have established an "Employee Code of Conduct". This serves as a behavioral guide that all our executives and employees are expected to follow.
Beyond legal compliance, the Employee Code of Conduct encompasses relationships with various stakeholders (including maintaining trust with customers and garnering understanding and support from shareholders and creditors), information management, nurturing a conducive environment for employee unity and personal growth, adherence to global environmental regulations, prohibition of association with anti-social entities, and participation in social contribution activities, among others.

In accordance with the Whistleblower Protection Act, the Group has established a Compliance Hotline as a whistleblowing outlet for employees. The Compliance Hotline has two outlets: one external, supervised by a lawyer experienced with whistleblowing systems, and one internal, so employees can choose where to make a report. In compliance with the Whistleblower Protection Act, the content of the report will be kept confidential and can be managed anonymously if the individual reporting the issue so desires. The subjects for consultation are wide-ranging, including violations of laws, internal regulations, general social norms, and corporate ethics, harassment such as sexual harassment and power harassment, employment issues, workplace environment issues, bribes and large entertainment, etc. The appointed person will report and investigate the content of the incident, discuss it with the relevant department, decide on measures to prevent recurrence, and take prompt action.

Additionally, the "Compliance Hotline" accepts consultations and reports from our business partners. Through this hotline, we promote the strengthening of a fair and open trading environment based on compliance with relevant laws and regulations. We strive to establish relationships of trust and mutual development with our business partners.

*Consultations and reports received through the internal reporting desk are regularly reported to the Board of Directors.

＜Internal Reporting System＞

As part of our compliance initiatives, the Group has established a consultation desk utilizing SNS since 2023, in addition to our compliance hotline, with the focus on "easy reporting and consultation." This consultation desk is primarily managed by the Risk Management Department, which oversees internal compliance and risk management initiatives. It also plans and implements compliance education and training for employees, based on the content of reports and consultations. Additionally, we are continually improving our compliance system through risk analysis, risk avoidance, and mitigation.

In fiscal year 2023, we received 10 reports regarding compliance violations, none of which resulted in disciplinary action.

*The in-house reporting and consultation desk was established in 2023.

The Group conducts regular training and education sessions on our corporate philosophy and Employee Code of Conduct, as well as workshops to raise awareness about the prohibition of bribery and prevention of corruption. In addition, to increase employee awareness, we have established a compliance enlightenment page on our internal portal and company mobile devices. Our aim is to ensure that the awareness of compliance is deeply ingrained in all our employees.

If an event that violates compliance occurs, we will investigate the parties involved, the circumstances, the nature and details of the violation, the amount of damages, the impact on stakeholders, etc., and take appropriate action. In addition, we will report to relevant government agencies, develop measures to prevent recurrence, and take disciplinary action as necessary.

The Group recognizes bribery and corruption as serious risks that can significantly damage corporate trust.
We ensure that all employees of our group are aware of the absolute prohibition of providing illegal benefits to public officials and engaging in excessive hospitality or gift-giving with business partners and affiliates, actions that are considered to arouse suspicion and mistrust in society. We strive to prevent such activities through our corporate actions.
Furthermore, in the development of our business, multiple related departments are responsible for conducting comprehensive checks on "exclusion of anti-social forces", "prevention of money laundering", "elimination of unfair trading practices", "prohibition of insider trading", "hospitality and gift-giving", and "donations to politicians and political organizations". We strive to assess and prevent corruption risks through these checks.

The Group regularly conducts anti-corruption audits of all businesses. We conduct an annual audit regarding compliance with standards of conduct to prevent corruption, money laundering, etc., and report the results to the Board of Directors.

In addition, we have established an internal reporting system, the "Compliance Hotline", which allows all employees to directly report any behavior that contravenes laws, company policies, or behavioral standards. This system is supervised by a lawyer who is thoroughly familiar with the internal reporting system. Reports can be submitted directly to an external contact point or to the company's internal public interest reporting personnel.

In an effort to ensure comprehensive understanding among employees, we have taken measures to prevent corrupt behavior in general based on the standards of conduct set forth in the "Compliance Regulations" and the "Employee Code of Conduct." These materials are available on the company portal for employee reference at any time.

In 2023, there were no serious legal or regulatory violations caused by non-compliance with rules related to bribery prevention, and there were also no financial penalties, charges, or settlements related to corruption.

Financial penalties, charges, or settlements related to corruption

We do not contribute to political activities aside from contributions to political parties and political fundraising organizations. Furthermore, when we do support the activities of political groups, we do so in compliance with the relevant laws and regulations such as the Political Funds Control Act and the Public Offices Election Act.

The total amount of political contribution