Fair Competition

Concept and Policy

In the Daiwa House Group, we look at our suppliers as business partners out to complete the same job. The fact that we can offer customer-satisfying quality owes to a vast supply chain of material and equipment manufacturers, installers, aftercare service providers and other supporting businesses.

That said, we are very much in agreement with the "Regulations for Construction Work Contracting" of the Construction Industry Act where it states, "The concerned parties of a construction work contract must conclude a fair contract based on agreement from equivalent standpoints and must observe the contract in good faith." We also transact business with business partners who are protected under the subcontracting law in the full spirit of the law. Additionally, in our "Principles of Corporate Ethics and Code of Conduct," we honor our partnerships with our business partners, seek good relations with them and aspire for the healthy development of the industry as a whole under principle of free market competition. In that, we call for "good relations with our business partners," "refusal to use a dominant bargaining position" and "fair and free competition" because "Co-creating a Brighter Future" with our business partners is the underlying principle. Moreover, in our "Basic Procurement Policy," we require that business transactions be "fair, legally compliant, highly ethical and based on market principles" and that that be made known to our business partners.

Excerpted from the Daiwa House Group’s "Principles of Corporate Ethics and Code of Conduct"

With business partners

We value our collaboration and cooperation with business partners, and work to create appropriate mutual relationships.
In line with the principle of free market competition, we work to realize the healthy development of the whole industry.

  • Good relations with our business partners
    We consider our suppliers vital business partners we cannot do without and shall always engage them on equal and fair terms and with a spirit of co-existence and co-prosperity.
  • Refusal to use a dominant bargaining position
    We shall never use our dominant position to force unreasonable business conditions on others, bargain, etc. Moreover, we shall not make inappropriate demands to our business partners, extort them in any way, shape or form, or commit any acts in their regards that may question our dignity, and we shall be cautious in our use of entertainment for business and shall not accept any gifts.
  • Fair and free competition
    We should refrain from actions, including bid-rigging, that may hinder free and fair competition, and refrain from behavior that may raise

Excerpted from the Daiwa House Group’s "Basic Procurement Policy"

  • We shall establish a point of contact that is fair and impartial to all business partners, and conduct business based on the principles of competition and a high standard of ethics.
  • We shall conduct business fairly and in full compliance with applicable laws and regulations both in Japan and abroad.
  • We shall build good relations with business partners in the spirit of co-existence and co-prosperity.

Management

In promoting "Co-creating a Brighter Future" with our business partners, we think it is important to establish a mindset and business processes that respect fair competition. For that to happen, all executive officers and employees undergo training that enables them to make decisions and act in line with our "Principles of Corporate Ethics and Code of Conduct."

A couple of the processes we use to verify that business transactions are being implemented fairly are the internal audits conducted by the Internal Audit Office and the audits of purchasing operations that the Head Office Purchasing Department does.

Moreover, as a tool for solving problems between us and our business partners, we survey members of the Confederation of Par tner Companies once a year and look for paths to improvement in their feedback. And, to give our business partners the means to report their concerns, we created a "Partners Hotline" and take very seriously every matter they raise.

Another thing we did to strengthen our auditing practices was to improve the ef fectiveness of the "compliance/risk evaluations" we conducted up until fiscal 2016. Whereas before these evaluations served to analyze the compliance with technical requirements and the safety and quality management of branch offices, starting in fiscal 2017 we are applying a new management approach that "verifies compliance/risks." More specifically, we measure improvements against improvement plans crafted from internal audits, compare current relations against results of our business partners questionnaire survey and provide coaching where needed in both cases.


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