Sustainability

Governance Initiatives

Corporate Governance

Our Company delegates responsibility and authority for the execution of its business to operating officers and managers, and implements efficient management based on appropriate checks and balances emphasizing the supervisory function of our directors.

Corporate Governance

Compliance

As a member of the Honda Group, to ensure the trust of our customers and the community, we will comply with laws and regulations and behave sincerely and ethically based on the Honda Philosophy. The Honda Trading Group will share and uphold the Honda Code of Conduct (see below), which sums up the sincere actions that we, as individuals working in the Honda Group, should put into practice.

In addition, the Company holds regular meetings of the Compliance Committee chaired by the Compliance Officer to monitor the state of compliance and governance appropriately.

Honda Code of Conduct

Introduction

Under the guidance of the Honda Philosophy and as a company empowered by its aspiration to realize people’s dreams, Honda has thus far been able to establish trust with its customers and society by engaging in global business operations and sharing joy with people around the world. As a result of our global deployment, Honda now has associates in numerous countries and regions around the world.
Considered conduct grounded on the Honda Philosophy on the part of each individual associate is essential for Honda in reinforcing the trust established with our customers and society.
Recently, we have established the Honda Code of Conduct as sincere actions that we would like all persons working at Honda around the world to follow. By sincere, we mean free from deceit and hypocrisy and being earnest.
To reinforce the trust of customers and society and make Honda “a company society wants to exist,” all associates including officers and directors of Honda and its subsidiaries (hereinafter referred to as “associates”) (where HM and its subsidiaries are collectively called as the “Honda Group”) should fully understand and comply with the Honda Code of Conduct, and practice sincere and ethical conduct that conforms to the Code.
Acts in violation of the Code may be subject to discipline under company policies and applicable laws and regulations.

Responsibilities of the Management

As a member of the management, you should serve as a role model and carry out work under high ethical standards to foster a sincere and ethical corporate culture.
You should also strive to foster an organizational culture in which your associates put the Honda Code of Conduct into practice and are able to report or consult any concerns without fear of retaliation.
In cases where violations or possible violations of the Code are found, you must not neglect the situation.
Instead, you should respond appropriately by taking actions such as reporting to the legal department or compliance & ethics contact line.

Scope of Application

The Honda Code of Conduct applies to associates of the Honda Group.
Honda also advocates adherence to the Code on the part of its affiliates.

Relationships with Customers

Quality of Products and Services

Honda’s policy Honda strives to provide products and services that exceed the expectations of customers and society. In this sense, it is essential to place the highest priority on quality and safety, voluntarily establish high standards, and respond in an appropriate manner.
Required conduct I will place the highest priority on the quality and safety of products as well as services, and comply with established standards and procedures. I will also request business partners and distributors/dealers to adhere to Honda’s standards and procedures.

Appropriate Advertising and Publicity

Honda’s policy Honda engages in advertising, publicity, and sales promotion activities in good faith so as to constantly meet the trust and expectations of customers and society.
Required conduct I will properly engage in product advertising, publicity, and sales promotion activities to avoid misleading customers.

Compliance with Competition Laws

Honda’s policy Honda will engage in free and open competition with competitors to maintain its stance as a company trusted by customers and society.
Required conduct I will comply with competition laws (antitrust laws).

Relationships with Business Partners

Sound Business Practices

Honda’s policy Honda will engage in sound business practices under an environment of free and open competition which is built upon mutual trust with suppliers, distributors/dealers, subcontractors and all other business partners, while aiming to build long-term, constructive relationships with them.
Required conduct

I will comply with the following in order to maintain sound relationships with business partners:

I will carry out appropriate procedures in accordance with company policies in selecting business partners, and will comply with laws, regulations, and company policies related to business transactions.

I will not receive from or provide to business partners benefits in the form of goods (both monetary and non-monetary) or entertainment beyond what is generally considered appropriate by society. I will also not use my position or authority to receive improper benefits from interested parties.

Relationships with Colleagues / Work Environment

Communication in the Workplace

Honda’s policy Honda strives to create workplaces in which co-workers can trust one another at all times.
Required conduct I will strive for smooth communication in the workplace to create a harmonious work environment.

Respect of Human Rights

Honda’s policy Honda strives to maintain its stance as a company committed to practicing fairness and sincerity and respects human rights.
Required conduct I will respect fellow associates, interact with them in a sincere and appropriate manner, and never engage in any form of harassment or unjust, discriminatory behavior in the workplace.

Safety and Health

Honda’s policy Honda will provide a safe and healthy workplace to maintain a pleasant and safe work environment.
Required conduct I will comply with laws, regulations and company policies related to safety and health, strive to maintain a safe and healthy workplace, as well as prevent and minimize accidents.

Relationships with Honda(Company Assets)

Company Assets

Honda’s policy Honda will appropriately maintain and manage all company assets, both tangible and intangible, as enterprise resources to achieve its business objectives.
Required conduct I will appropriately handle company assets and not engage in acts that damage the value of company assets. I will appropriately handle facilities, equipment, tools,products, parts, accessories, items supplied by the company, money, intellectual property, and all other company assets in compliance with company policies and not use them for anything other than for achieving Honda’s business objectives.

Management of Information

Honda’s policy Honda will appropriately protect and manage confidential information and personal information that it holds for the purpose of conducting proper business operations.
Required conduct I will appropriately handle confidential information such as internal information, business partner information and personal information of customers and other associates in compliance with laws, regulations, and company policies. I must also refrain from illegitimate use of such information for insider trading or other improper deeds.

Conflicts of Interest

Honda’s policy As a measure to ensure appropriate business operations, Honda prohibits any conduct by associates that conflict with the interests of Honda.
Required conduct I will not engage in acts that conflict with the interests of Honda for my own benefit or the benefit of business partners or third parties.

Relationships with Society

Traffic Safety

Honda’s policy Honda will develop advanced safety technologies and engage in activities to promote safe driving with the aim of realizing a safer motorized society.
Individual conduct I will observe traffic rules, good driving etiquette and endeavor to drive safely.

Environmental Protection

Honda’s policy Honda actively endeavors to protect the global environment throughout all business activities as a responsible member of society.
Required conduct I will comply with laws and regulations, company policies, and internal standards related to environmental protection and strive to reduce the burden on the environment by engaging in resource conservation, energy conservation, and recycling.

Contribution to Society

Honda’s policy Honda strives to contribute to society through its business activities, such as the provision of products and services that exceed the expectations of customers and society. Honda also engages in socially beneficial activities to fulfill its social responsibility as a corporate citizen.
Required conduct I will fully acknowledge Honda’s basic stance to contribute to society and strive to fulfill our expected roles in the community.

Relationships with Political and Administrative Entities

Relationships with Political and Administrative Entities

Honda’s policy As an independent corporate entity, Honda maintains appropriate relationships with political entities (political organizations and politicians) and administrative entities (governmental agencies and government officials).
Required conduct I will interact with political and administrative entities in an appropriate manner in compliance with laws, regulations, and company policies and will not offer politicians or government officials entertainment nor gifts (both monetary and non-monetary) that are prohibited by laws, regulations, and company policies

Relationships with Shareholders, Investors, and Other Stakeholders

Timely and Appropriate Disclosure of Information

Honda’s policy In order to remain a highly transparent company, Honda strives for appropriate communication with customers, business partners, shareholders and investors, local communities, and other stakeholders.
Required conduct I will appropriately disclose information in compliance with laws, regulations, and company policies when engaging in disclosure of information to outside parties and interact with stakeholders in a courteous manner.

Compliance and Reporting Non-compliance Incidents

Compliance and Ethics

Honda’s policy Honda continuously carries out initiatives to strengthen compliance in order to reinforce the trust established with society. Persons who work at Honda are also required to comply with relevant laws, regulations, and policies while acting ethically.
Required conduct I will comply with laws, regulations and company policies.
I will act ethically in accordance with social norms and common sense.

Reporting Non-compliance Incidents

Required conduct If I become aware of any violation or possible violation of laws, regulations or company policies, report the matter, I will submit suggestions, and consult as necessary with my manager, the legal department, or the compliance & ethics contact line*.

*This includes the internal whistleblower hotlines established by the group companies.

Risk Management

In order to achieve sustainable growth of the company and stabilize management, we have established basic policies and operational rules concerning risk management. Based on these policies and rules, the Company holds regular meetings of the Risk Management Committee chaired by the Risk Management Officer to assess risks and identify appropriate countermeasures.

Risk Management