Risk Management

The Bandai Namco Group has established the Group Risk Compliance Committee, chaired by the President and Representative Director of Bandai Namco Holdings Inc. The committee’s members include full-time directors and it has a secretariat. With this organization in charge, we have strengthened Groupwide risk management and put into place a system to respond to crises. Within this framework, we are working to strengthen compliance, prevent compliance violations, and enhance information security.

Composition of Group Risk Compliance Committee

A diagram of how the Group Risk Compliance Committee responds to risks. Compliance managers at domestic and international Group companies report risks to business management companies or overseas business management companies as necessary. The contents of the report are shared with the head of the Sustainability Management Department, the director in charge of risk and compliance, and finally the Group Risk Compliance Committee via the risk and the office for reception of risk and compliance information at the headquarters. Once the committee receives this and issues the necessary directions, the directions are similarly passed on to domestic and international Group companies.

Risk and crisis management

Information security

Compliance

Basic Policy on Compliance

The Bandai Namco Group recognizes that, regardless of country or region, complying with the letter and spirit of all laws, fulfilling social responsibilities, pursuing profits in fair and unrestricted competition, and contributing broadly to society through corporate activities are universal and important missions imposed on companies that build relationships of trust with society and fulfill the role of driving progress toward the realization of a sustainable society.

Based on this belief, we have formulated the Bandai Namco Group Compliance Charter, which is the code of conduct that all directors and employees should comply with when executing their businesses, and we have declared that we will work to comply with and implement the content of the Declaration.

Bandai Namco Group Compliance Charter

To continue creating a future for everyone where people and societies are connected by dreams, fun and inspiration in accordance with Bandai Namco’s Purpose, “Fun for All into the Future,” while respecting the fundamental human rights of all people, we have established the following principles as a basis for our future actions.

Appropriate Products and Services, and Fair Dealing	We will provide only those products and services which do not undermine the healthy development of young people, in order to continue creating a future for everyone where people and societies are connected by dreams, fun and inspiration. We will comply with all laws and regulations, never abuse our professional positions or otherwise violate the rules of free competition, and continually strive for fairness and transparency in our business dealings.
Respect for All Employees	We will provide a safe and comfortable working environment that prioritizes the lives and health of all individuals within the Group.
Information Disclosure	We will strive to maintain public communications and to disclose all appropriate and reliable corporate information in a timely and fair manner, without withholding any information, in order to ensure transparency in our business dealings for the benefit of all our stakeholders.
Respect for and Usage of Intellectual Property	Recognizing that content and other intellectual property are valuable resources, we will carefully protect our intellectual property rights while respecting those of others, and effectively use our intellectual property.
Protection of Information and Resources	We will respect the distinction between public and private in the handling of company resources. Understanding the importance of all consumer data and personal information collected in the course of our activities, and all confidential information relating to our business operations, we will handle such information appropriately so as to safeguard personal privacy and prevent unauthorized access or disclosure.
Rejection of Anti-Society Groups	We firmly reject any and all groups that threaten the safety and order of society.
Harmony with the Environment	We recognize that preserving both the natural environment and people's living environments is an essential part of our medium-to-long-term corporate development, and we will conduct our business based on this recognition.
Harmony with Society	As a good corporate citizen, we will work toward cultural advancement and strive to create healthy and fulfilling lives for people around the world through our business activities, while respecting the unique culture, customs, and rules of each country and region.

The Group’s Risk and Compliance System

We are strengthening our compliance system Groupwide, with these efforts spearheaded by the Group Risk Compliance Committee. We regularly hold meetings of the Group Compliance Subcommittee, with attendance of persons in charge of compliance at business management companies, to strengthen the Group’s compliance system, understand the situation, and share information. This information is then reported monthly at regular meetings of the Board of Directors of Bandai Namco Holdings through the Group Risk Compliance Committee Secretariat.

Response to Compliance Violations

If a Group company identifies a legal violation or other compliance violation, a report is made to that company’s Compliance Committee. Pursuant to the Group Risk Compliance Rules and the compliance regulations of each Group company, the relevant Compliance Committee then reports to Bandai Namco Holdings, which determines the appropriate course of action based on the situation.

If the matter is judged to require a response by the entire Group, the Group Risk Compliance Committee will meet to determine and instruct an appropriate course of action.

Internal Whistleblower Systems

Bandai Namco Group companies maintain a whistleblower system under their own internal rules. The rules require employees to consult with their supervisor or notify the President, an external consultation desk, or Audit & Supervisory Board members via the whistleblower system (hotline) when they discover any regulatory violation or have other concerns. Additionally, in accordance with the Whistleblower Protection Act and other relevant regulations, the whistleblower system ensures that whistleblowers will not be treated disadvantageously due to reporting misconduct.

	FY2022	FY2023
Number of whistleblower reports received	86	101

Anti-Corruption Initiatives

In recent times, importance has been placed on ensuring fair competition in international trade. Around the world, there is a growing awareness of the need to prevent corrupt practices such as bribery. Various laws and regulations have also been established, including the U.S. Foreign Corrupt Practices Act.

We formulated the Group Anti-bribery Regulations to better eliminate and prevent corruption risks, especially in relation to public officials. In addition, we formulated the Anti-insider Trading Regulations and conducted employee training on bribery prevention in striving to establish an anti-corruption system and ensure sound management throughout the Group.

Compliance Training

We created and displayed compliance posters internally to inform directors and employees across the entire Group about the Bandai Namco Group Compliance Charter. We also distribute the Bandai Namco Group Compliance Book, which serves as a practical handbook for daily actions, to all directors and employees.

Moreover, the Group conducts five e-training sessions for Group officers and employees (approximately 13,000 people) annually. In this way, the Group is working to raise awareness of compliance and further strengthen its compliance system.

FY2023 E-Learning Course Content
April 2023	Compliance with the Bandai Namco Group Compliance Charter
June 2023	Information security, personal information protection, computer/mobile/social media incident response
August 2023	Qualified invoice system, insider trading prevention
November 2023	Diversity and inclusion, bribery prevention
February 2024	Preparation and response to crisis, and Business Continuity Plan for crises

Compliance Hotline

The Compliance Hotline is a contact point for external stakeholders to provide specific information regarding violations of laws and regulations, misconduct, or any other conduct that violates (or may violate) the Bandai Namco Group Compliance Charter and the Bandai Namco Group Human Rights Policy by officers and/or employees of Group companies in the course of business activities. Inquiries other than those of consultations listed above, such as about products, will not be accepted through this hotline. Please contact each operating company. For details about the Compliance Hotline and Reporting Form, please visit the link below.

Bandai Namco Group Compliance Hotline

Risk and crisis management

Information security

Compliance