How to improve internal compliance awareness? Specific measures and key points are explained in detail.
In addition to power harassment and sexual harassment, there is now no end to the number of corporate compliance violations, such as inappropriate messages on social networking services. Therefore, companies and organizations are taking steps to raise awareness of compliance. Compliance is now a corporate issue that cannot be left to others. It is important to raise awareness of compliance within the company on a daily basis to prevent fraud and misconduct. In this issue, we will discuss the reasons why compliance is necessary in the workplace and explain the key points for raising awareness of compliance. If you are in charge of human resources at a company, please take a look at this article. Table of Contents 01What is "Compliance" in the Workplace? Compliance with employment regulations and codes of conduct Prevention of Harassment Prevention of information leaks 02Reasons for Increased Attention to Compliance Awareness Public scrutiny of misconduct has become more severe The risk of spreading information on social networking services has increased IT assets need to be managed 03Causes of non-compliance Compliance violations are more likely to occur due to Low awareness of compliance within the company There is pressure from superiors 04Means to improve compliance awareness Conduct training Use e-learning 05Key Points to Improve Compliance Awareness Know your employees' awareness of compliance Share compliance standards Provide ongoing compliance education 06 Summary What is "compliance" in the workplace? The literal translation of the word "compliance" is "adherence to the law," which means following the rules. In the workplace, the term "compliance" is becoming increasingly diverse. Compliance with work rules and codes of conduct In addition to compliance with laws and regulations, compliance also means adherence to internal work rules and codes of conduct. Simply put, employment regulations are rules regarding working conditions and job rules set by the employer. A code of conduct refers to the behavior that employees should take in order for the company to continue to operate. Being "compliant" is synonymous with conducting corporate activities in accordance with the work rules and code of conduct. Prevention of Harassment Harassment, which is the harassment of another person by words or actions, is another area where compliance is violated. Typical examples of harassment include the following Sexual harassment Power harassment Alcohol harassment Moral harassment Remote Harassment Harassment is often unintentional, and preventing it from occurring is essential for compliance. Prevention of Information Leakage Preventing information leaks is also a part of compliance. From the standpoint of compliance, such actions as "taking data home with you because you can't finish your work" or "uploading photos on social networking services that show internal documents" can be called violations. If personal or customer information is leaked, the company's credibility could be severely damaged. Back to Table of Contents Why Increased Compliance Awareness Is Noteworthy Why is there a need for increased compliance awareness now? There is a reason for the attention. Public scrutiny of misconduct has become more severe. The Internet and social networking services have made the public more sensitive to misconduct. And the more dishonest the response after a scandal occurs, the more severe the public scrutiny becomes, and the more criticism tends to increase. The greater the criticism, the more the company's credibility will be damaged, and in the worst case, the company may be forced into bankruptcy. Increased risk of spreading on social networking sites The spread of SNS has increased the risk of fraud and misconduct being spread. As soon as someone uploads a text or video to a SNS, the information will spread and may be reported in the media such as newspapers and television. IT asset management has become necessary. IT assets have become more complex to manage, which is one of the reasons why compliance is now a hot topic. Personal computers Smartphones Tablet devices Servers Software Network Equipment Nowadays, many IT assets have emerged and individual information security measures must be taken. For example, downloading software without permission just because it is needed for business may damage a company's credibility due to license violations. Therefore, it is important to deepen understanding of license agreements within the company in raising compliance awareness. Back to Table of Contents Causes of Noncompliance Why do non-compliances occur? Next, let us look at the causes. Compliance violations are likely to occur under the following circumstances Even if employees are aware of compliance, noncompliance can still occur if internal conditions are poor. For example, the following workplaces are prone to noncompliance Insufficient internal training Lack of employee management system In-house rules are not clearly defined No one in charge of managing IT systems Low awareness of compliance within the company In a company with low compliance awareness, the risk of fraud and misconduct is high. This is because employees may unknowingly violate compliance due to lack of necessary knowledge. For example, an "attempt at a joke" may turn out to be sexual harassment, or an "attempt at guidance" may turn out to be power harassment. In companies where the understanding of compliance is not widespread, it is necessary to first make employees aware of the meaning of following rules and corporate ethics. There is pressure from superiors. Workplaces where there is pressure from superiors may have cases of non-compliance on a daily basis. This is because it is difficult to report violations within the company, even if they occur, because of the fear that they may be sanctioned. However, if a report or a complaint is made, it is possible to identify problems and areas for improvement within the company and to quickly ascertain the current situation. Therefore, employees who report from within the company should be protected by nature. Back to Table of Contents Means of Increasing Compliance Awareness Once a compliance violation has occurred, it takes a great deal of time to regain trust. Therefore, compliance education is essential and preventive measures must be thoroughly implemented. Next, let us look at specific training methods. Conduct training To prevent violations before they occur, conduct compliance training. In-house training will help employees understand the basic concepts of compliance, as well as CSR (Corporate Social Responsibility), corporate governance, and other compliance-related issues. Another advantage is that past cases of noncompliance can be used to predict the risk of noncompliance. It is recommended that training be conducted not only when compliance violations occur at your company or other companies, but also when laws and regulations are enacted or revised. Utilizing e-Learning Compliance training utilizing e-learning is also effective. Specifically, it offers the following advantages. Training can be tailored to individual progress Content to be taught can be standardized All employees can easily participate Leads to cost savings E-learning allows you to learn repeatedly, regardless of time and location, so you can absorb knowledge efficiently and reliably. Back to Table of Contents Key Points for Improving Compliance Awareness The following are points to know when using training and e-learning to improve compliance awareness. Know your employees' awareness of compliance First, check the level of awareness of compliance among your employees. Some long-time employees may have the mindset that "as long as we follow the law, we will be fine. However, the term "compliance" is becoming more and more widely used, and now it is also important to follow company rules. Listen to each individual and check the employees' awareness of compliance before educating them. Share compliance standards. Share your standards for compliance by firmly establishing your company's basic policies and guidelines for conduct. Do not just emphasize compliance, but also share the penalties for non-compliance, as this will serve as a deterrent. Provide compliance education on an ongoing basis. Compliance education should not be a one-time event, but should be conducted on a regular basis. This is because laws and regulations may be enacted or revised, and rules and laws are constantly changing. In addition, since it is difficult to retain an understanding of compliance once it has been learned, it is advisable to repeat the training many times. Back to Table of Contents Conclusion In this issue, we have introduced the topic of raising compliance awareness, and in this day and age when social networking sites can easily spread misconduct, the entire company must learn about the risks of noncompliance and strive to raise awareness of compliance. To raise compliance awareness within your company, please use the compliance training contents of "learningBOX ON". LearningBOX ON" is a service that makes it easy for companies to add essential training content to learningBOX, an e-learning creation and management system. You can easily design your own original learning courses by combining them with your company's in-house content. Compliance training and harassment training content are available free of charge, so please take advantage of this service for your in-house training. We also recommend this service! Also read Back to Table of Contents
It's not just about legal compliance! Business Ethics and Compliance
Now that compliance is considered important in management activities, many companies are promoting compliance measures as one of their issues. However, many companies have the perception that "compliance with laws and regulations is what compliance is all about," and few companies may understand the essence of compliance. In this issue, we will discuss corporate compliance in detail, touching on corporate ethics, which is important to know in order to understand compliance. If you are in charge of human resources at a company, please refer to this article. Table of Contents 01What is "compliance" in a company? 02Examples of non-compliance Failure to manage working hours Power harassment and sexual harassment Inadequate information security Fraudulent accounting Improper receipt of benefits Misrepresentation of products and services Inadequate hygiene management 03Ethics required for corporate compliance Level 1: Compliance with laws and regulations Tier 2: Compliance with company rules Tier 3: Ethical Conduct 04Why companies need compliance To fulfill social responsibility Because of the risk of administrative action To damage the corporate image 05How to prevent compliance violations Build a compliance team Implement a compliance program Care for Whistleblowers 06 Summary What is "compliance" in a company? Compliance in a company is intended to gain the trust of society and maintain corporate value. Of course, it is not wrong to understand compliance in terms of observing the laws set by the government, but in fact, it is not limited to that. Corporate compliance also includes having social good sense and acting in accordance with corporate ethics. Back to Table of Contents Examples of Non-Compliance Compliance has been attracting attention in Japan since the 1990s. The term "compliance" has become widespread, triggered by the many corporate scandals that occurred at that time. Let's take a closer look at what exactly is meant by noncompliance. Failure to manage working hours One of the most severely enforced forms of noncompliance is inadequate management of working hours (violation of the Labor Contract Law), including overtime work and nonpayment of overtime wages. Violations of these laws will result in a recommendation for corrective action in an investigation by the Labor Standards Inspection Office. Note that companies that have not concluded a 36 (sub-local) agreement are considered in violation of the law if they force employees to work more than 8 hours per day or 40 hours per week. Power Harassment and Sexual Harassment Various types of harassment, such as "power harassment" and "sexual harassment," can also be considered noncompliance. Note that harassment is not an individual issue but a company responsibility and can be pursued as a violation of the duty of care for safety. In addition, there are now a wide variety of types of harassment, and terms such as "moral harassment (moraharassment)" and "maternity harassment (materaharassment)" have emerged. All workers must deepen their understanding of harassment and take care in their work to prevent problems from occurring. Inadequate Information Security There are also compliance violations due to inadequacies in information security. Typical examples are leakage of personal information due to unauthorized removal of information by employees or hacking damage. It is feared that the recent proliferation of remote work has led to a lack of awareness regarding the handling of personal information. Companies must take thorough information security measures to prevent information leaks. Fraudulent Accounting One of the most common examples of past noncompliance is accounting irregularities, such as fictitious recording of sales and expenses and falsification of accounting documents. The circumstances leading to noncompliance vary from company to company, such as covering up the misappropriation of funds to meet sales targets or padding expenses to report lower profits for the purpose of tax evasion. All of these violations undermine the credibility of the company and can be severely punished as misstatements in securities reports or as fraud. Fraudulent Receipt Fraudulent receipt is the act of improperly receiving government subsidies or grants. In order to receive subsidies and grants, it is necessary to fulfill the conditions stipulated by each system, but there have been cases of people receiving them fraudulently by filing false reports. If this fraud is brought to light, the recipient may be required to return the amount paid, and in some cases, a surcharge may also be imposed. Misrepresentation of Products and Services Misrepresentation of goods and services (violation of the Act against Unjustifiable Premiums and Misleading Representations) is the misrepresentation of services or products to consumers through exaggerated advertising or misleading representations. Examples of such misrepresentations include selling products based on unsubstantiated data, or claiming a limited quantity but actually selling a larger quantity than that. In addition, if a company claims that a product will "surely help you lose weight" or "boost your immunity" without evidence, it may be in violation of the Pharmaceutical Affairs Control Law. Inadequate hygiene management Inadequate hygiene management is a compliance violation that is particularly problematic in restaurants. There have been many cases in the past of mass food poisoning caused by companies that prioritize profit margins and turnover rates without taking the necessary sanitary measures for food products. It is also important to note that companies that falsify the place of origin or expiration date of food products will also be severely punished. Back to Table of Contents Ethics Required for Corporate Compliance There are three levels of corporate compliance, not only legal compliance, but also corporate ethics that must be adhered to in the course of business activities. Tier 1: Compliance with Laws and Regulations The first level of ethics is the concept of acting in compliance with laws and regulations. Violations of labor contract laws and accounting irregularities, such as those described in this article, can be said to violate the first level of ethics. Many companies currently recognize that "compliance = adherence to the first level of ethics. Tier 2: Compliance with company rules The second level of ethics is the observance of company rules other than laws and regulations. The rules may vary from company to company, but they may include "do not use equipment for other purposes" or "do not bring back personal information. Although violations are not punishable by law, they are considered mandatory for all employees of a company. Tier 3: Ethical Conduct The third level is the concept of ethical behavior, which is neither legal nor statutory. It means to act properly as a human being and how one should act properly as a person working for a company. Compliance that a company should fulfill is a term that refers to the scope of compliance up to this third level. It is very important to check once again to what level of compliance your company has penetrated among its employees. Back to Table of Contents Why Companies Need Compliance So why do companies need to be compliant? Let us look at the reasons in turn. To fulfill social responsibility In order to run a business, a company needs to fulfill its Corporate Social Responsibility (CSR), as it is called. CSR is a response to the demands of society, and the term is often used in a broader sense than compliance. In other words, compliance is included in the process of promoting CSR. It is important for a company to build a better relationship with society through CSR, without giving priority only to its own profit. By doing so, the company will be evaluated as "a company with a thorough compliance system. Because of the risk of administrative penalties If a company violates compliance, it may be subject to business suspension or a business improvement order. Depending on the severity of the violation, there is also a possibility of arrest, and it is not impossible to say that there are no cases of fines or imprisonment. If a company receives an administrative sanction or penalty, it will not only be unable to conduct its business, but will also suffer a significant loss of trust in the company. For this reason, it is necessary for each and every employee to raise his or her awareness of compliance on a daily basis. Because the corporate image will be downgraded If a compliance violation is reported in newspapers or the news, the corporate image will be severely damaged. Business partners with whom you have built a good relationship may leave your company, and this may lead to consumers not buying your products or refraining from purchasing them. If the company does not take appropriate measures after a compliance violation occurs, it may be forced to downsize its business or go bankrupt in many cases. Back to Table of Contents How to Prevent Noncompliance To avoid noncompliance, companies must take thorough preventive measures. Next, let's look at some specific prevention methods. Establish a compliance team Establish a compliance team within your company. In establishing the team, it is important to make sure that the team is not only aware of "simply obeying the law," but also that they are aware of the deeper aspects of corporate ethics. The most important thing is the behavior and attitude required to adhere to social codes of conduct, which is exactly the understanding of the third level of ethics introduced in this article. In addition to the countermeasure team, it is also important to set up a consultation service where employees can feel free to discuss compliance violations within the company. Implement a compliance program Implementing a compliance program is another effective preventive measure. A compliance program is a framework or plan that a company creates to ensure compliance with laws and regulations and ethical corporate activities. Specifically, a compliance program may include the establishment of a compliance committee and the deliberation of plans and cases. Once the program is implemented, it is necessary to ensure that information is shared within the company and that it is thoroughly disseminated. Care for Whistleblowers Whistleblowers must be protected in order to ensure safe and preventative compliance. Whistleblowers are not a hindrance to the company, but rather a resource that can lead the company in a better direction. In a workplace where whistleblowers are identified and disadvantaged by their reporting, no one will care when something goes wrong. The Whistleblower Protection Act was created to ensure that employees who report whistleblowing are not disadvantaged. Companies should share the Whistleblower Protection Act throughout the company and be aware of the importance of respecting and caring for whistleblowers. Back to Table of Contents Conclusion In this article, we have explained corporate ethics and compliance. Compliance is often used in place of the term "legal compliance," but it includes not only the observance of laws, but also the observance of ethics and morals. Let's take the time to deepen the proper understanding of compliance within the company to determine what kind of behavior and attitude is desirable as a person who should be involved in society. Please use the compliance training contents of "learningBOX ON" to inform your employees about compliance. LearningBOX ON" is a service that makes it easy for companies to add essential training content to learningBOX, an e-learning creation and management system. You can easily design your own original learning courses by combining them with your company's in-house content. Compliance training and harassment training content are available free of charge, so please take advantage of this service for your in-house training. We also recommend this! Also read Back to Table of Contents
What is Compliance Management? From implementation methods to key points for success
Compliance considerations are essential for a company to remain in business for a long time. However, many people may wonder what compliance means in the first place. To ensure that compliance violations do not occur within your company, it is important to have a firm grasp of what compliance means. In this issue, we will introduce the details of compliance management, the background of its importance, and examples of violations. We will also introduce how to implement compliance management and points to keep in mind when doing so. Table of Contents 01What is Compliance Management? Background of Importance Advantages of Strengthening Compliance 02Examples of non-compliance Violation of the Labor Standards Law Leakage of personal information Harassment 03How to Implement Compliance Management Identify potential risks in business processes Conduct compliance training Conduct a review of the company culture Appropriately manage documents, etc. Establish a compliance consultation desk 04Points to consider when implementing compliance management Exercise leadership by management Develop dedicated compliance staff 05Summary What is Compliance Management? Background of Importance The word "compliance" means "observance of laws and regulations," and compliance management refers to management that observes laws and regulations and practices them while respecting corporate ethics. In order for a company to continue its business, it is important to be trusted by society. However, against the backdrop of a series of corporate scandals, such as window dressing, the term "compliance" has come to be frequently heard. With the current rash of corporate scandals, a single scandal can cause significant damage to a company. On the other hand, a company that is able to manage risks against fraud will be trusted by society and its corporate value will increase. Being aware of compliance is very important in corporate management. Advantages of Strengthening Compliance There are many advantages for a company if it can strengthen compliance. Let us introduce some specific advantages. The first advantage is the ability to consider long-term profits. In many cases, management that is not conscious of compliance pursues only immediate profits. However, by being aware of compliance, one can make decisions based on sincere values and generate profits from a long-term perspective. The second benefit is that investors will appreciate the company's reputation. Some investors place a high value on "corporate social responsibility (CSR). In today's climate of intense scrutiny of corporations, companies that emphasize compliance management are evaluated by investors and have an advantage when it comes to fundraising and other situations. Back to Table of Contents Examples of Non-Compliance There are many examples of noncompliance by companies, of which we will present three. Violation of the Labor Standards Law Although reforms in work styles are currently being promoted, there are still a small number of companies that manage their businesses in violation of the Labor Standards Law, notably by working long hours and failing to pay overtime. This is one of the most common examples of noncompliance. Leakage of personal information Due to the revision of the Personal Information Protection Law, public scrutiny of the handling of personal information has become extremely strict. Even if you put a lot of effort into security measures, it is not uncommon for personal information to be leaked due to unauthorized access. Harassment There are many types of harassment, including sexual harassment and power harassment. Whether an action or speech constitutes harassment is determined by the perception of the recipient. Actions and behaviors that were not considered harassment in the past may now constitute harassment, so it is important to be very careful about what you do and say. Back to Table of Contents How to Implement Compliance Management There are many ways to implement compliance management. Here we introduce five methods. Identify potential risks in business processes Compliance violations can occur from daily business operations. Therefore, it is a good idea to start by identifying any hidden risks in daily business processes. One concrete method is to conduct interviews with employees. The key is to confirm whether or not there is any dissatisfaction with the organization, such as whether working hours are getting too long, whether the manuals are appropriate, and so on. Conduct compliance training. Conducting compliance training for all employees is an effective way to develop employees' sense of ethics and morals. Share the rules that should be followed within the company and what is considered common sense by the public. It is also essential to educate employees on knowledge of laws and regulations. Without knowledge of laws and regulations, employees may not realize that they are violating compliance. Conduct a review of the company's internal culture. Even after stressing the importance of compliance in training, it is necessary to change the mindset of employees in order to put it into practice in business situations. If employees' awareness of compliance has waned as they prioritize results, first review the company's culture. It is recommended that management communicate the importance of compliance management to employees by sending out information on how to respond when fraud is discovered. Properly manage documents, etc. When handling a large number of documents on a daily basis, documents must be properly managed. If highly confidential documents are accessible to anyone or not filed, reconsider the management method. If you are feeling the limitations of paper-based management, a paperless approach is recommended. There are many advantages, such as easy sharing and cutting printing and other costs. Establish a compliance consultation service To prevent rampant fraud in your company, set up a compliance consultation service. If there is an environment in which any wrongdoing can be brought to light from within the company, it will be possible to take prompt action when a problem arises. It is important to respect the whistleblower's wishes, for example, by not treating whistleblowers unfavorably. Back to Table of Contents Points to Consider When Implementing Compliance Management In order to implement compliance management, it is important to keep the following points in mind. The following two points should be kept in mind when implementing compliance management. Management should show leadership. If management does not demonstrate a strong commitment to implementing compliance management, employees will not recognize the importance of compliance. By ensuring that fraud will never occur, and by having management show serious leadership, employees will become more aware of the importance of compliance. Cultivate dedicated compliance personnel. To implement compliance management over the long term, develop dedicated compliance personnel in your company. While a third-party checking organization may be an option, developing a person in charge within the company in advance eliminates the need to rely on outside personnel. If possible, try to assign a dedicated person to each department by having them participate in external workshops. Back to Table of Contents Conclusion In this issue, we have provided an overview of compliance management, taking into account examples of compliance violations. In order to continue corporate activities, it is important for companies to work on strengthening compliance. Management should be aware of the importance of compliance while also working on risk management. Please use the compliance training contents of "learningBOX ON" to inform your employees about compliance within your company. LearningBOX ON" is a service that makes it easy for companies to add essential training content to learningBOX, an e-learning creation and management system. You can easily design your own original learning courses by combining them with your company's in-house content. Compliance training and harassment training content are available free of charge, so please take advantage of this service for your in-house training. We also recommend this! Also read Back to Table of Contents
It's no longer someone else's business! Compliance and CSR affect corporate value
As the environment surrounding companies changes rapidly, the social responsibilities that companies must assume are also expanding, and the importance of corporate compliance is increasing year by year. Compliance here goes beyond legal compliance and includes the fulfillment of CSR. However, society's scrutiny of companies has become increasingly severe in recent years, and compliance and CSR-conscious management are essential for long-term business continuity. This applies to both large and small companies. Let's take a look at compliance and CSR once again, as they affect corporate value. Table of Contents 01What is Compliance? 02What is CSR? 03Background of CSR Corporate scandals Growing seriousness of environmental issues, etc. Globalization of companies Diversification of consumer values 04What CSR activities do companies actually engage in? 05CSR Advantages Advantage 1: Enhancement of corporate image Advantage 2: Diversification of business Advantage 3) Enhancement of corporate recognition Merit④ Improvement of corporate profit Merit⑤ Improvement of employee satisfaction 06Disadvantages to be aware of when engaging in CSR Demerit 1) Increased costs Demerit 2) Requires manpower 07CSR and compliance initiatives are essential for business continuity in the future What is Compliance? The word "compliance" means "observance of the law. You may be unfamiliar with the term "compliance" and may not have a clear idea of what it means. For example, harassment such as "sexual harassment," "power harassment," "moral harassment," service overtime, excessive long working hours, and leakage of personal information are all violations of compliance. Isn't this a more familiar problem than you thought? Compliance in recent years has become more diverse, and is not simply about "observing laws and regulations. Compliance also includes "observing company rules, laws and regulations, and social rules, and conducting appropriate corporate activities. With the development of social networking services, it has become common to see scandals committed by a few employees spread all at once on the Internet, resulting in a major loss of public trust in the company as a whole. For this reason, the reinforcement of compliance in companies is becoming more and more important every year, and many companies are conducting compliance training and promoting compliance activities on a company-wide basis. Back to Table of Contents What is CSR? CSR stands for "Corporate Social Responsibility. It refers to the social responsibility that a company assumes in the course of its business activities. It is the concept that a company should not only pursue profits, but also assume responsibility for its stakeholders at large. Stakeholders include shareholders, management, employees, customers, suppliers, financial institutions, government agencies, various organizations, and other stakeholders of the company. A company's economic activities are deeply intertwined with its stakeholders, and without a good relationship of trust, economic growth cannot be expected. Based on this concept, compliance is a fundamental part of CSR. If compliance is the observance of laws and regulations, CSR is, in a broader sense, the concept of responding to the demands and requirements of society. Back to Table of Contents Background to the Demand for CSR In recent years, corporate social responsibility (CSR) activities have been attracting attention for the following reasons. Corporate scandals Increasing number of corporate scandals, such as problems with mislabeling of food production areas and best-before dates, window dressing, etc., have increased stakeholders' distrust of companies. Increasing seriousness of environmental and other problems Environmental considerations have become a social responsibility for companies as various problems such as global warming, climate change, and air pollution have become more serious. Corporate Globalization With the globalization of corporate activities, stakeholders have also become internationalized, and the impact of corporate activities has increased. Diversification of consumer value Consumers are increasingly choosing products not based on price, but rather on corporate philosophy and CSR initiatives. Back to Table of Contents What CSR activities do companies actually engage in? In practice, each company engages in CSR activities that are unique to its own characteristics. Among them, environmental protection is one of the CSR activities that many companies engage in. Specifically, these include reducing CO2 emissions through the introduction of hybrid and electric vehicles, and introducing renewable energy. Some companies are also involved in cultural support such as concerts and preservation of cultural assets, and in the development of the next generation of human resources by holding events where children can have hands-on experience. CSR also includes a sake brewing company producing and supplying a substitute for alcohol disinfectant when the new coronavirus epidemic began, and many companies have greatly relaxed telecommuting policies for their employees, allowing them to work in a variety of different ways. Toyota Motor Corporation is one of the companies actively involved in CSR. Toyota Motor Corporation is one of the companies that actively engages in CSR activities. These activities include contributions to environmental conservation and awareness through tree planting and greening activities in Aichi, Mie, Gifu, Kagoshima, and Indonesia, which are all related to Toyota, transportation services for the disabled and elderly, and factory tours for elementary school students. Back to Table of Contents Benefits of CSR Next, let's review the benefits that a company can gain by engaging in CSR. Advantage 1: Enhancement of corporate image Proactive CSR efforts will lead to an improved corporate image. When a company's image is improved, its products and services themselves are also enhanced, and it can win trust as a company. Advantage 2) Diversification of business Through CSR activities, companies can gain experiences and connections with people that they would not normally have. This increases the possibility of new business opportunities. Advantage #3: Increased corporate recognition When a company actively engages in CSR activities, it can make itself known as a company to people other than its existing customers. Benefit 4) Enhancement of Corporate Profit The enhancement of corporate image and recognition through CSR can lead to the purchase of products and services, which can be expected to increase profits. Benefit 5: Increased employee satisfaction Employees will feel more confident in their work, believing that their work contributes to society, and their job satisfaction will improve. Back to Table of Contents Disadvantages to be aware of when engaging in CSR So, are there any disadvantages to engaging in CSR activities? The following two are the main disadvantages to be aware of. Demerit (1) Increased costs CSR requires costs. Although CSR is beneficial to the company in the long run, it may result in lower sales in the short term because time and expenses are spent on activities that are not part of the company's core business. Disadvantage (2) Manpower required CSR activities require manpower. With the chronic shortage of manpower becoming an issue, some companies are unable to provide the manpower to engage in CSR activities. Back to Table of Contents CSR and Compliance Initiatives Are Essential for Business Continuity in the Future CSR is not a charitable activity, but a social responsibility that companies must assume. As such, it requires corporate philosophy, ethics, and transparency. As society's scrutiny of corporate activities becomes increasingly severe, CSR and compliance, which is the foundation of CSR, are essential for corporate development. If your CSR and compliance efforts are not yet sufficient, why not start with compliance training? Because there is a significant risk of noncompliance, it is important to continuously educate employees about compliance. Please use the compliance training contents of "learningBOX ON" to inform your employees about compliance within your company. LearningBOX ON" is a service that makes it easy for companies to add essential training content to learningBOX, an e-learning creation and management system. You can easily design your own original learning courses by combining them with your company's in-house content. Compliance training and harassment training content are available free of charge, so please take advantage of this service for your in-house training. We also recommend this service! Also read Back to Table of Contents
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