Responsible Business Operation
The Z Holdings Group actively conducts measures to prevent corruptions such as bribery, as well as measures to prevent money laundering.
Fully committed to prevent corruptions
The Z Holdings Group values the importance of aspiring to achieve a safe and sustainable Internet society through the trust entrusted and its harmony with the society. In addition, the Z Holdings Group is committed to act with the spirit of fair play and to fulfill its social responsibility. To this end, the employees fully understand their expected and required roles, and will pursue efficient corporate activities while maintaining the necessary corporate governance to gain the trust and understanding of our stakeholders.
The internal rules of Yahoo Japan Corporation ("Yahoo! JAPAN") prohibit the receipt of excessive gifts, entertainments and the like from business partners. In the same context, bribery to public officials (including persons who are treated as public officials) for the purpose of receiving benefits for the company’s business is prohibited. Bribery is not limited to the provision of cash but includes farewell gifts, condolences and congratulatory gifts, end-of-year and mid-year gifts, as well as invitation to golf and entertainment.
In addition, in regards to facilitation payments in countries other than Japan, analysis is made on areas and businesses with high risk of facilitation payments. These analyses are used to raise the awareness of local employees on the prohibition of such payments and to select business partners. More specifically, expense application and record taking of accounting evidence are thoroughly enforced. Administrative procedures with the authorities are made online without the help of mediators. Periodic audits are carried out to supervise compliance on these matters.
In fiscal 2019, the Z Holdings Group received no legal actions regarding corruption, bribery and the like.
Policies to prevent money laundering and financing of terrorism, and our commitment
The Z Holdings Group will not be involved in transactions related to the proceeds derived from illegal acts, transactions that fund terrorists, and transactions with counterparties with whom transaction is prohibited by the government of each country, etc.
To this end, the Z Holdings Group has built systems to manage customer identification and reporting of suspicious transactions based on the Act on Prevention of Transfer of Criminal Proceeds, and endeavors to prevent abuse of financial services in organizational crimes. Moreover, for services to which the Act on Prevention of Transfer of Criminal Proceeds apply (The Japan Net Bank, PayPay, Yahoo! JAPAN Card, YJFX), our countermeasures based on laws and regulations, as well as structures and measures original to our services boost the robustness of our countermeasures against money laundering and terrorist funding.
For example, The Japan Net Bank, a group company of the Z Holdings Corporation, verifies identity of a user opening an account by requiring users to submit designated identity verification materials as well as by sending the transaction documents (cash cards, etc.) to the registered address by registered mail. Furthermore, The Japan Net Bank strictly confirms the details of the application, and if circumstances so require, requires additional verification materials or denies the opening of the account, etc. In addition, opened accounts are continuously monitored for their transactions by specialized divisions to prevent unauthorized use.
At PayPay, authentication by eKYC or bank accounts is used to confirm transactions when users open their accounts. PayPay strictly confirms the details of the application and depending on circumstances, denies the opening of the account. Furthermore, risks are mitigated through measures such as restriction of transfer amount below the legally required amount. In addition, opened accounts are continuously monitored for their transactions by specialized divisions to prevent unauthorized use.
At YJ Card Corporation, a group company of the Z Holdings Corporation, Yahoo! JAPAN Cards can only be used through measures such as confirming the user as the person who made the application by requiring users to show their identity verification materials when they receive the credit cards. For specific cases in which unauthorized use, etc. can be suspected at screening, additional hearings, etc. are made to reduce the risk of unauthorized use.
Periodic audits are conducted for services to which the Act on Prevention of Transfer of Criminal Proceeds apply, to supervise compliance with laws, regulations and internal rules.
Ensuring fair competition
Under the Group’s code of conduct, Z Holdings Corporation and Yahoo! JAPAN uphold the principle of conducting business operations with the spirit of fair play under free and fair competition. This is stipulated in the Group’s internal regulations, in line with the Subcontract Act, Intellectual Property Acts, and Unfair Competition Prevention Act. Also, measures to raise the awareness are taken to forestall unfair restraints of trade and unfair trade methods that are subject to control under the Antimonopoly Act.
With respect to the Subcontract Act, an emphasis is placed on raising the awareness against acts that harm the interests of subcontractors. To convey the fundamental purpose of the Subcontract Act, which is to ensure fair subcontracting transactions and to protect the interests of subcontractors, specific problematic examples that may constitute incompliance with the law, such as reducing the subcontract proceeds or changing details of the payment arrangement without due reasons, are explained.
In addition, intellectual properties rights, such as those protected under the Patent Act, Trademark Act, and Copyright Act, and trade secrets protected under the Unfair Competition Prevention Act, are clearly expressed as extremely important to the company’s business. Along with this, rules are stipulated to urge respect for, and not to violate, intellectual property rights of business partners and third parties.
Prohibition of acts of conflict of interest
Z Holdings Corporation stipulates in its internal regulations the guidelines and procedures relating to acts of conflict of interest (acts that create conflict of interests between the company and the employee) so that employees are able to make the right decision and take the right course of action when confronted by such a situation.
The regulations stipulate that employee is obliged to notify the superior in advance of any act of trade that may possibly conflict with the company’s interest, and that the superior who is notified must take necessary actions to prevent conflict of interests between the company and the said employee. In addition to this, Yahoo! JAPAN, which is a business operator, has its own regulations in place that explicitly prohibit acts of competition contrary to the interest of the company.
The Z Holdings Group is committed to solving social issues and contributing to the creation of new values in the Internet industry through its business. In addition to these, the Z Holdings Group also thinks it important to help promote the development of Japan and regions in which it operates, by appropriately returning the profits gained through its business operations to its various stakeholders.
Above all, with respect to tax liability, which is one of the most basic and important responsibilities as a corporate citizen, the Group is committed to appropriate tax payment practices in compliance with the applicable taxation-related laws and relevant international laws of all the respective countries and regions in which it operates, and in accordance with the designs of these laws. The Group’s corporate income tax for fiscal 2019, as stated in its consolidated profit and loss statement, was JPY47.655 million. The Z Holdings Group will continuously strive to fulfill its tax obligation and contribute to the social development of these countries and regions.
In regards to political donations, compliance with Political Funds Control Law is thoroughly enforced. In fiscal 2019, the amount of political donations was JPY 2.23 million. The Z Holdings Group considers digital transformation as one of the important themes, and the donations are therefore made to political organizations engaged in promoting policies related to digital transformation.