ー GOVERNANCE ―
For Sustainable Management
While working to expedite management decisions and improve corporate value, we recognize that ensuring compliance is crucial for our sustainable growth. Based on this recognition, we have established a corporate governance system to systematically ensure compliance.
Corporate Governance System
We, as a corporate group that coexists with society and contributes to the development of the Japanese economy and local communities, recognize the importance of:
- building a management organization structure capable of responding promptly and properly to changes in the business environment;
- pursuing reasonable management decisions and efficient business execution that can sufficiently fulfill accountability;
- ensuring transparency and fairness in decision making;
- ensuring sound ethics based on good sense of society, besides legal compliance; and
- disclosure of information to stakeholders in a timely and proper manner. We will thus develop and enhance the corporate governance system to systematically secure them, with the aim of achieving the sustainable growth of our Group and improving its corporate value.
■Corporate Governance Structure
Board of Directors
The Board of Directors is the management decision-making body of our company and consists of eleven directors, four of whom are external directors.
External directors are appointed as independent directors in accordance with the regulations of the Tokyo Stock Exchange.
In implementing corporate strategies, the Board of Directors functions as the responsible body that covers all our group companies both in Japan and overseas to bring together the collective strengths of the Group.
Outline of the systems for internal control and risk management
The Internal Auditing Dept., established as a department under the direct control of the President, conducts regular audits to make sure that the management activities of our company and our group companies are appropriately carried out based on the corporate internal regulations and standards, and monitors the business execution of the executive directors and employees.
We have also established the Risk and Compliance Committee to oversee the Group’s risk management and compliance promotion activities. Regarding the prevention of Group-wide risks, the Committee is responsible for providing education, setting priority tasks and annual plans, and grasping/assessing the progress of initiatives.
Board of Auditors
Pursuant to the Companies Act and other relevant laws and regulations, we have introduced the Board of Auditors system.
The Board of Auditors consists of three Board of Auditors Members, of whom one is a full-time member who is familiar with the operations and businesses of the Company and the industry (and the other two are external auditor). One of the Board of Auditors Members is appointed as an independent officer who has no conflict of interest with general shareholders.
Each member of the Board of Auditors monitors the effectiveness of governance and audits the execution of management practices, including the execution of duties by Directors.
In addition, we work closely with our accounting auditor (KPMG AZSA LLC), our Internal Auditing Dept., and auditors of affiliated companies, with the aim of enhancing the audit structure in the execution of business operations.