Other Policies

  • In line with its basic sustainability policy to realize its management philosophy, the CMP Group conducts procurement activities with suppliers based on the following policies.

  • 1. Open and fair trade

    The CMP Group constantly seeks to create business opportunities with new business partners. We decide on business partners fairly by comprehensively evaluating quality, price, delivery schedule, reliable supply, and technical services.

  • 2. Compliance

    n its procurement activities, the CMP Group complies with all relevant laws, regulations, and social norms, and takes appropriate actions in consideration of morals and human rights.

  • 3. Mutual trust and mutual development

    Through fair and honest procurement activities, the CMP Group builds relationships of mutual trust with suppliers and strengthens the relationships for mutual development.

  • 4. Preserving the global environment by reducing environmental impact

    In order to contribute to environmental preservation through procurement activities, the CMP Group considers CSR assessment and ISO 14001 certification when selecting suppliers, and aims to contribute to society throughout the supply chain.

  • 5. Appropriate management system for confidential information

    The CMP Group appropriately manages confidential information obtained through procurement activities and strives to prevent leakage.

  • We recognize that we benefit from biodiversity in all aspects of our business activities and that our business activities impact biodiversity in various ways. Therefore, we have a responsibility to work for the conservation and sustainable use of biodiversity so as not to adversely affect it.

    Today, there is a need to stop and reverse the rapid loss of biodiversity on a global scale and move it onto a recovery track (“Nature Positive”).

    We will continue to promote activities for the conservation and restoration of biodiversity.

  • 1. We will strive to reduce the impact on biodiversity throughout our business activities.

  • 2. We will promote the development of products that take into consideration the conservation of biodiversity.

  • 3. e will endeavor to understand our dependence and the impacts we have on biodiversity in our supply chain.

  • 4. We will comply with international agreements and the laws and regulations of each country.

  • 5. We will conduct our business activities with consideration so as not to damage the local ecosystem.

  • 6. We will strive for collaboration and cooperation with external stakeholders to enhance the effectiveness of biodiversity conservation and restoration.

  • 1. Basic policy

    CHUGOKU MARINE PAINTS, LTD. and its subsidiaries (collectively, “CMP Group”) make appropriate tax payments in compliance with tax laws and regulations in the relevant countries and regions where CMP Group does business to fulfil their social responsibilities.

  • 2. Tax governance

    In CMP Group, the director in charge of Finance and Accounting has the responsibility for CMP Group’s tax governance, and the department in charge of tax which reports and manages tax matters is supervised by the director.

    To fulfill the tax obligation appropriately, CMP Group, establishing and maintaining the internal control system and the risk management system, carries out tax-related tasks properly such as tax documentation and document management and makes its best efforts to reduce tax risks arising from errors in practical operations.

  • 3. Tax planning

    To maximize CMP Group’s shareholder value, CMP Group strives to utilize effectively the tax relief measures available in general business activities in the relevant country or region and optimize tax costs. Furthermore, CMP Group shall not implement any measures based on interpretation departing from the tax regulations, which may be considered or interpreted as tax evasion.

  • 4. Uncertainty of tax positions

    To deal with the increasing tax risks caused by the extended reporting obligation for the global business, highly developed tax investigation and its forceful enforcement in the relevant country or region, CMP Group consults with tax advisors and seeks advice as necessary.

  • 5. Transfer pricing

    Prices that are applied to CMP Group’s transactions are set in consideration for the relative risk and added value in accordance with the Transfer Pricing Guidelines published by the OECD and also in accordance with the arms’ length principle. In cases where the documentation of the pricing method is obligatory in the relevant country or region, or where such documentation is necessary due to factors such as transaction size and potential taxation risks, CMP Group generates the documents in an appropriate manner.

  • 6. Tax havens

    When establishing a subsidiary, CMP Group determines the country to establish in order to conduct general business activities, not to avoid taxes. When investing in a low-tax country, CMP Group makes appropriate tax payments in accordance with the laws and regulations of the relevant country or region.

  • 7. Relationship with tax authorities

    CMP Group endeavors to maintain proper and cooperative relationships with the tax authorities in the relevant country or region where CMP Group does business through communication. CMP Group explains to and corresponds with them in a sincere and appropriate manner.

    CMP Group consults with the tax authorities about the important tax matters and unusual transactions depending on the situation. If tax authorities notify CMP Group of tax adjustments, CMP Group determines the cause of such issues, and takes appropriate corrective measures or improving measures unless CMP Group files a petition of objection or tax lawsuit.

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