What to know about internal reporting systems in Japan

2021-12-23

Internal reporting systems are important tools that enable employees to securely report incidents of sexual harassment, abuse of power, and violations of other laws and regulations. They also account for over half of the corporate misconduct brought to light in Japan.

The amended Japanese Whistleblower Protection Act, which will take effect by June 2022, requires business operators with over 300 employees to create a system for responding to such reports, and others to make a ‘best effort’. The amended Act also enhances protection for whistleblowers, and expands the scope of that protection to include executives and former employees.

This report provides an overview of the amended Act, recommendations for companies looking to introduce an internal reporting system, and an introduction to PwC’s solutions in this field.