MD’s Message (Competition Law)
Competition law is designed to safeguard effective competition among manufacturers or supplier as well as to protect the best interest of businesses and consumers against anti-competition behaviour. All businesses must comply to the rules and policy set by the competition law and there can be consequences of for businesses and individuals, including directors, for non-compliance, including heavy penalty, disqualification, imprisonment and reputational damage.
Fair competition shows companies where they need to improve and encourages organisations to strive for great efficiency and nurture trust and transparency among the consumers and suppliers. We will not consent to, make agreement to, exchange information or communicate with competitors, whether expressed or implied privately or publicly in written or verbal concerning prices, sales conditions, company reports or other form of discreet matters to avoid any misunderstanding or suspicion pertaining to above subjects. Mitsubishi Electric Sales Malaysia will fully adhere to all laws and regulations concerning fair trade competition in countries and regions where businesses are conducted. Every employee will receive regular training either online or in-person regarding competition law and other entities related to it such as anti-bribery compliance to serve as an awareness and reminder for everyone to always emphasize on the needs for being compliant to competition law and work with integrity in our dealings with third parties including competitors.
The structure and content of a competition compliance programme must be tailored to a business’ particular requirements. There is no standard programme that will apply in all cases. However, an effective competition compliance programme should contain the following elements:
- Active implementation
A competition compliance programme goes further than a written or verbal commitment to comply with the law. It should be actively implemented and promoted through appropriate policies and procedures.
- Appropriate policies and procedures to ensure compliance with competition law
For a competition compliance programme to work well, businesses should put in place effective policies supported by appropriate procedures. An effective policy could include seeking a written undertaking from employees and directors to conduct their business dealings within the compliance framework and taking disciplinary action against employees/directors whose actions resulted in an infringement of the law.
Main requirements stipulated in Mitsubishi Electric internal policies and guidelines, related to contacts with competitors and our dealers/distributors are as follows:
Dealers / Distributors
Minimize the number of meetings and interactions with competitors
If you are in a situation where you need to interact and communicate with competitors, NEVER GIVE AND NEVER REQUIRE any information about the offers, price lists, price changes, sales volumes, production levels/reserves, business plans, tender proposals, the cost structure of the company and any other confidential information.
Resale price fixing is prohibited
*Very risky zone (such questions are prohibited): questions about resale prices, any messages which show that we may control level of discounts provided by other distributors/dealers to their clients.
Thorough check of distributors/dealers is required before concluding Contracts with them. It is important to examine their profiles – whether they were involved in any bribery cases, or in any gross violation of law.
It is vital to ensure that distributor/dealer acts in compliance with our rules for display of Mitsubishi Electric corporate logo.
- Support and adherence of senior management
The support and adherence of senior management should be visible, active and regularly reinforced, as these are important indicators of a business’ commitment to comply with competition law. They not only signal to external stakeholders that the business values compliance, but also encourage junior employees within the organization to support the compliance programme and actively follow its principles.
- Active and ongoing training for employees at all levels who may be involved in activities concerning competition law
Training on competition law itself and on the business’ policies and procedures in relation to compliance should be conducted. The training could be offered as part of the induction programme for new staff and on a regular basis thereafter to reinforce the compliance message and keep staff updated on any changes in business practices and the law. Businesses should keep a record of any training given.
- Regular evaluation and review
Evaluation is essential as a means of ensuring that the competition compliance programme is working properly, as well as to identify and address areas of potential risk. Evaluation could take the form of testing individual employees’ knowledge of the law, policy and procedures. Adherence to compliance policy could also be used as one of the criteria against which an individual’s and department’s performance is appraised. The evaluation process should be carried out as openly as possible to indicate to employees that their conduct is constantly subject to review against the terms of the competition compliance programme.
I implore everyone in the company to follow the competition compliance law and lead by the example as a responsible citizen base on ethics foundation built by Mitsubishi Electric. Mitsubishi Electric Sales Malaysia will always hold on to its principles as a compliant company and continue to persevere for “Changes for the better” every day.
With warmest regards,
Mitsubishi Electric Sales Malaysia Sdn. Bhd.