Illegal and Unfair Use of Company Assets
Basic Principles
- 1. Material/Immaterial assets along with confidential information are a company's important assets; thus such assets must be used in business activities and for approved purposes. Employees have responsibilities to compensate for loss, misuse and theft.
- 2. Company expenses are public funds only to be used in sound business activities. Accordingly, such funds must be appropriately used for set purposes and company standards must be observed.
Guidelines for Procedures
You may see details clicking or tapping each item.
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1. Use of Material/Immaterial Assets for Other Purposes
Classification Examples Basic Principle(s) Remarks Embezzlement / Diversion of Material Assets - - Fixed Assets:
diverting of fixed assets such as land building structure. facility equipment for other than business purposes including using these without permission or for the purpose of personal profit
- - Business Assets:
taking out or using business assets such as vehicles, PCs, high-priced possessions, office supplies, etc. without permission as well as providing such to families or relatives or passing on cost of maintenance
- - Corporate Credit Cards:
excessively using beyond the limit, diverting the expense account, using for personal purposes
Prohibited Diversion of Immaterial Assets Seeking personal profit through leaking out design of products, business secret information, system information, etc., along with providing such to competitiors Prohibited - - Fixed Assets:
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2. Embezzlement and Diversion of Company Fund
Classification Examples Basic Principle(s) Remarks Embezzlement and Diversion of Company Fund Personal embezzlement or giving to interested parties through withdrawing company funds without permission, private financing, manipulating financial record, etc. Prohibited - - Illegal use of corporate credit card (illegal use of cash advance service)
- - Expense reimbursement through false proof (receipts from personal use and such)
- - Misusing expense system without proofs (exclusively for business trip expenses)
- - Managing expenses for personal entertainment or reception that can’t be settled financially together with expenses of other account
- - Providing corporate credit card to families and relatives to use without permission
- - Executing other personal deeds that violate company’s standard for expense management
1. Basic Principles
- (1) Material/Immaterial assets along with confidential information are a company's important assets; thus such assets must be used in business activities and for approved purposes. Employees have responsibilities to compensate for loss, misuse and theft.
- (2) Company expenses are public funds only to be used in sound business activities. Accordingly, such funds must be appropriately used for set purposes and company standards must be observed.
Basic forms of unfair application of assets are as follows and include all types of using and wasting company assets without approval.- - Other use of material and immaterial assets
- - Embezzlement and diversion of company funds
2. Forms of Asset Embezzlement/Diversion and Possible Violation of Code of Ethics
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(1) Forms of Asset Embezzlement and Diversion
- - Using or diverting company's material assets such as machinery and tools for facilities outside without permission
- - Misusing corporate credit card or various expendables not in accordance with business purposes but for personal use
- - Utilizing or diverting company's immaterial intellectual assets such as designs of products and information system that are protected as confidential information without permission, for the benefit of employees or others
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(2) Forms of Company Fund Embezzlement and Diversion
- - Withdrawing and using company funds without permission
- - Diverting company funds to other purposes or essentially acquiring cash through false documents
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(3) Possible Violation of Code of Ethics
Employees must observe the set procedures as written in the financial guide and information protection regulations when using company assets and it is considered violation of the code of ethics if procedures are not observed and can't logically explain the reasons.
Specifically, withdrawing and using material/immaterial assets for the profit of employees or other interested parties without permission or using company funds for personal reasons are considered as serious violations of code of ethics.
3. Use of Material/Immaterial Assets for Other Purposes
A. Applicable Deeds and Standard of Judgment
| Classification | Examples | Basic Principle(s) | Remarks |
|---|---|---|---|
| Embezzlement / Diversion of Material Assets |
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Prohibited | |
| Diversion of Immaterial Assets | Seeking personal profit through leaking out design of products, business secret information, system information, etc., along with providing such to competitiors | Prohibited |
B. Guidelines for Procedures
- (1) All assets of the company must be used exclusively for business activities or for the purposes approved by the company.
- (2) Specifically, assets of various articles such as corporate credit cards, vehicles and PCs must be used exclusively for activities in relation to duties and not for personal purposes. However, if assets have been used for private purposes under unavoidable circumstances, employees must report to higher ranking supervisors or executives immediately and return or settle expenses originating from the use of corresponding assets in accordance with the company's regulations for financial management.
- (3) Information communication system must be used exclusively for the execution of business affairs or for approved purposes. Employees must not misuse such system for unwholesome or commercial purposes or leak out any secret information using company system.
- (4) Employees must not manage a business or engage in others' duties for personal profit by utilizing information or knowledge acquired during position or duties.
4. Embezzlement and Diversion of Company Fund
A. Applicable Deeds and Standard of Judgment
| Classification | Examples | Basic Principle(s) | Remarks |
|---|---|---|---|
| Embezzlement and Diversion of Company Fund | Personal embezzlement or giving to interested parties through withdrawing company funds without permission, private financing, manipulating financial record, etc. | Prohibited | |
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B. Guidelines for Procedures
- (1) Seizing and spending of company funds or personally using company funds for other than business purposes are prohibited.
- (2) Withdrawing company funds by submitting false receipts on expenses that did not actually occur is strictly prohibited.