Compliance / Anti-corruption

Impact

Number of whistle-blowing reports received: 5

Number of Serious Compliance Violations: 0

Number of Employees Receiving Compliance Training: Approximately3,000people

Basic Concept

Based on the Mizuno Corporation Ethical Standards, we make company-wide efforts to ensure thorough compliance throughout the Group. We strive to prevent compliance issues through employee education aimed at enhancing understanding of applicable laws and regulations. In addition, we have also established a whistleblowing system to facilitate the early identification and prompt resolution of issues.

In fiscal year 2025, there were no cases of serious compliance violations, including anti-competitive behavior, nor any cases subject to legal action.

Compliance Risk Management System

We have established the Risk Management Committee, chaired by the President (CEO), to regularly identify risks that may affect Mizunoʼs business, including compliance violations, and to implement remedial measures effectively and efficiently. In addition, we work to mitigate risks and resolve issues through operational audits conducted by the Internal Audit Office and the operation of a whistleblowing system.

Governance Structure

Whistle-Blowing System Structure

Mizuno is committed to mitigating risks and addressing issues through operational audits conducted by the Internal Audit Department and the effective operation of internal whistleblowing systems.
The principal internal whistleblowing mechanisms currently in place include the following:

1. Mizuno Fair Play Hotline
2. Compliance Hotline (Senoh Group)
3. Mizuno Global Hotline (for especially serious cases at overseas bases; the number of overseas bases covered by this system is planned to be gradually expanded)

Enhancement of employee awareness

Provision of Compliance Education

To ensure thorough compliance, it is essential to raise each employeeʼs understanding and awareness. In fiscal year 2025, we continued to provide compliance education [*b] as part of company-wide training, aimed at helping employees acquire basic legal knowledge and perspectives related to their work. In addition, we provided targeted training to new recruits and newly appointed managers in functions such as planning, development, and business operations—on legal matters specific to their operations.
By conducting compliance education on a regular basis, we strive to embed both knowledge and awareness throughout the organization.

Operation of the Whistle-Blowing System

Mizuno operates a whistle-blowing system to prevent and facilitate the early detection of misconduct, including legal violations, unethical behavior, and fraudulent activities. The system is designed to strengthen the Companyʼs self-correcting capabilities and safeguard its social credibility.

To enhance the effectiveness of the system, we regularly conduct employee awareness surveys to assess its current status and identify areas for improvement. We also raise awareness through company-wide compliance training and by distributing pocket-sized cards containing information on whistle-blowing channels to all employees. Through these initiatives, we promote the early identification of issues and ensure appropriate responses.

In January 2020, Mizuno introduced the Mizuno Global Hotline, which allows employees at designated overseas locations to report particularly serious matters directly to the Head Office, in addition to the whistle-blowing channels established at their respective locations. We plan to gradually expand the scope of this system to include additional overseas operations.
In conjunction with the enforcement of the amended Whistleblower Protection Act in June 2022, Mizuno reviewed its whistle-blowing system across the Group and established a new external public-interest reporting channel. Furthermore, to strengthen whistleblower protection and ensure greater independence, responsibility for administering the whistle-blowing system was transferred from the Legal Department to the Internal Audit Office.
Mizuno is also committed to improving the effectiveness of its whistle-blowing system by striving to achieve 100% employee awareness of its internal reporting channels—the Mizuno Fair Play Hotline and Harassment Hotline—through annual compliance training and other awareness-raising initiatives.

Whistleblowing and Investigation Flow

Usage status of the whistle-blowing system[*b]

We did not identify any serious compliance violations during fiscal year 2025.

Mechanisms to Ensure Fair Transactions

Many suppliers and business partners, including small factories and individual operators, are involved in the production of Mizuno products. To build strong relationships with suppliers and ensure fair business practices, Mizuno provides training to employees in relevant departments on the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Subcontract Act). In addition, the Internal Audit Office continuously reviews transactions with major business partners to identify any practices that may compromise fairness.

Furthermore, Mizuno requires all suppliers of applicable Mizuno products to comply with the Mizuno CSR Procurement Regulations, which include anti-corruption provisions, prior to commencing business transactions. We also hold CSR procurement briefing sessions to explain Mizunoʼs approach to responsible procurement. In addition, we conduct regular supplier audits to verify that corrupt practices are not taking place.

Recognizing that corporate value creation depends not only on shareholders but also on a diverse range of stakeholders, including employees, business partners, customers, creditors, and local communities—Mizuno is committed to promoting appropriate collaboration with multiple stakeholders.

In March 2024, we established the Multi-Stakeholder Policy based on the belief that the appropriate distribution of profits and value generated through value creation and productivity improvements contributes to maintaining momentum for wage growth and supporting sustainable economic development. With this perspective, we recognize the importance of returning value to employees and giving due consideration to business partners.

For more information about the Multi-Stakeholder Policy, please refer to this document.

Anti-Corruption Initiatives

Mizuno is working to expand its B-to-B and global business operations. However, as such activities may be accompanied by risks of corruption, many countries have strengthened their enforcement against corrupt practices, and global companies are increasingly required to respond accordingly. As a result, we need to carefully manage and monitor corruption-related risks in our business activities, including bribery of public officials.

In response, Mizuno established and enacted the Anti-Bribery Rules in January 2020, applicable to all Mizuno Group companies both in Japan and overseas. We provided face-to-face briefings to managers of overseas offices and informed domestic employees of the new rules through internal training videos. Additionally, we conduct annual compliance training for all employees in Japan, which includes anti-corruption education.

Please click here for details of compliance education.

Enhancement of Compliance Across the Global Mizuno Group

As Mizuno aims for further global growth, strengthening the Group-wide global compliance and risk management framework has become a key management priority. While we have long been addressing risks related to fraud, misconduct, and bribery in our overseas operations, the business environment has become increasingly complex, requiring us to address a wider range of risks that may affect business continuity, including harassment, information security, geopolitical risks, and natural disasters. In response to these changes, we have identified the key compliance-related risks that could significantly impact our overseas business continuity and performance and are taking proactive measures to mitigate them.
In fiscal year 2025, there were no cases of legal action related to bribery within the Mizuno Group.

Major Potential Risks in Overseas Business

Through discussions held by the Risk Management Committee and other forums in fiscal year 2025, the following risks were identified and shared as key issues common across the Group.

Risk of fraud and misconduct by employees, related parties of overseas subsidiaries and agents, and overseas business travelers
Information Security Risk (addressing deficiencies in IT management at overseas subsidiaries and lessons learned from past ransomware incidents)
Harassment Risk
Geopolitical Risk (including political instability, armed conflicts, and terrorism in certain regions)
Natural Disaster Risk (the need to strengthen preparedness for large-scale earthquakes and other major disasters)
Need for consideration of diversity and human rights (e.g., religion, race) in global product development

Major Risk Countermeasures

To strengthen risk management on a global scale, the Mizuno Group continues to conduct risk assessments and questionnaire surveys while also reviewing and implementing more effective measures that reflect recent incidents and changes in the business environment.

From a business continuity planning (BCP) perspective, we are focusing on the following initiatives:

Developing more concrete risk scenarios for potential crises and emergency situations
Strengthening information security and crisis response frameworks
Enhancing education and awareness initiatives aimed at preventing recurrence

Through these efforts, we aim to further improve the resilience of the entire Group.

Tax Compliance Initiatives

The Mizuno Group complies with the tax laws of each country where its group companies operate, ensuring proper tax filings and payments. We have established a tax governance framework and work closely with group companies to ensure appropriate tax practices. While we actively utilize preferential tax systems that align with our business objectives, we do not engage in tax planning intended for tax avoidance.

To enhance tax compliance awareness across the Group, we consult with tax authorities when necessary and incorporate the insights of external advisors and auditors. We maintain a sincere and cooperative approach with tax authorities in each country, fostering and maintaining sound relationships built on trust.

When a tax audit is requested, we respond promptly and appropriately to any issues raised. In cases where disputes arise with tax authorities regarding our tax decisions, we carefully examine the points raised and seek corrections as necessary to resolve the matter.

Future Challenges

As transactions with a wider range of business partners increase, the importance of preserving and managing information and evidence for addressing unforeseen legal risks and dispute resolution is growing. In response, we plan to implement the following measures:

Provide training to enhance employeesʼ basic legal response capabilities
Offer education and establish systems for contract management and evidence preservation
Develop information systems and introduce forensic technologies

In addition, based on our policy of strengthening governance in support of global efforts toward a sustainable society, we will implement the following initiatives:

Expand the application of the whistle-blowing system to overseas offices
Review of the CSR procurement management system
Reevaluate global legal reporting lines and information management systems