One of the pillars of the Daiwa Securities Group's Corporate Principles is "total compliance," under which the Group promises that "it will maintain high standards of professional ethics and a fair code of conduct, thereby contributing to the development of our society." Creating the internal standards and rules needed to comply with the law, guiding and raising the consciousness of employees and monitoring their work are major preconditions of corporate activity. Compliance as it is meant to be practiced in the Daiwa Securities Group means that all employees respect the law and regulations in their day to day work, and that they do so with a strong sense of ethics.
To be more precise, the Daiwa Securities Group has implemented the following measures: 1) establishment of a Group ethics code and a Group ethics code of conduct for the purpose of employees' respect for the law, 2) establishment of a Group inspection code defines rights to investigate employees' adherence to the law as well as any illegal acts, 3) implemented compliance training for employees by an outside attorney and 4) implemented compliance training for new employees.
The Daiwa Securities Group introduced a Group wide Corporate Ethics Hotline in January 2003. The hotline is intended to boost early detection, correction and deterrence of activities that are illegal or damaging to the Group brand. This system encourages the self-policing function of our organizations. Users can report information anonymously, and reported information is treated with the utmost confidentiality so that the informant does not suffer. The system is set up so that informants can use our intranet, email, post, telephone, or face to face interviews to contact either the Corporate Ethics Officer at Daiwa Securities Group Inc. or an outside law office.