Nissan Motor Co., Ltd. submitted a corrective action report to the Japan Fair Trade Commission (JFTC) on March 5, 2025, in relation to the recommendation received from the commission on March 7 last year based on violations of the Japanese subcontract act*.
Nissan has taken the recommendation from the JFTC and instructions from the Ministry of Economy, Trade and Industry (METI) very seriously and implemented various improvement and corrective measures, including revising and reforming companywide processes and organizations.
Going forward, Nissan will continue its efforts to regain the trust of business partners and work together as a company to promote fair transactions.
Improvement and corrective measures
1) Establishment of regulatory compliance management system
Building and strengthening systems and structures
- Established a department responsible for the Subcontract Act to strengthen internal controls.
- Created an external window (hotline) to receive inquiries and reports from business partners.
- Established the Partnership Transformation Office directly under the President/CEO to directly gather feedback from business partners.
- Regularly hold management-led meetings (Partnership Committee) to discuss appropriate actions for fair transactions with business partners.
- Implement improvements and corrections to various processes to further promote fair transactions.
Enhancement of regulatory compliance governance
- In April 2024, established a compliance department under direct executive supervision to strengthen regulatory compliance governance in the Purchasing Division.
- Starting in April, the department will be elevated to an all-company regulatory compliance department for the Subcontract Act, establishing internal structures and promoting activities.
The main roles and responsibilities of the department include:
(1) Development of internal policies and rules
(2) Conducting risk assessments and testing
(3) Monitoring laws and regulations
(4) Educating employees and purchasing personnel - In fiscal year 2024, Nissan implemented improvements and corrections to various processes based on feedback from business partners.
- Starting in fiscal year 2025, in addition to regular audits by the Internal Audit Office, and in collaboration with the Legal Department and Compliance Office, the regulatory compliance department will conduct regular assessment and testing.
2) Enhancement of compliance awareness and knowledge
- Regularly communicate top management messages to employees, including messages from the President/CEO.
- In fiscal year 2024, conducted various educational programs and events to raise employee compliance awareness.
- Review educational materials regularly and include practical content and provide ongoing education to general employees and purchasing personnel.
- Monitor regulatory changes and social requirements through the regulatory compliance department for the Subcontract Act.
*“Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors”
SOURCE: Nissan
