Approach toward corporate governance

In addition to complying with all relevant laws and regulations, our Group is committed, from the perspective of corporate governance, to fulfilling our responsibilities to our stakeholders (including shareholders, business partners, final consumers, employees, and local communities), to increasing corporate value, and to enhancing returns to shareholders. We strive to ensure that all officers and employees are fully aware of the importance of compliance, and encourage them to make decisions and take actions based on common sense. We have positioned corporate governance as an important management issue in order to enhance fairness and transparency of management and to ensure that decision-making and execution are accurate and prompt.

Corporate governance system

As a company that has an Audit & Supervisory Committee, we ensure the effectiveness of the supervisory function through the Audit & Supervisory Committee, the majority of which is composed of external directors.
 In addition, we have established an Internal Audit Office under the direct control of the President, which is independent from the execution of business operations. The Internal Audit Office, as a staff member of the Audit & Supervisory Committee, assists the Audit & Supervisory Committee members’ audits, and conducts internal control audits and operational audits.
 Further, we have established the Compensation Advisory Council as an advisory body to the Board of Directors, and determine the remuneration of directors after making an objective and impartial review and obtaining approval from the council.

Approach toward risk management and its promotion system

In our Group’s risk management system, each responsible department establishes rules and guidelines, conducts training, and prepares and distributes manuals as necessary with respect to various risks related to compliance, disasters, the environment, quality, information security, etc.
 Although we do not have a department dedicated to overall risk management, the Corporate Planning Dept., the Administration Dept., the Legal & Compliance Dept., the General Affairs & HR Dept., and the Internal Audit Office work closely together to ensure that information is shared immediately in the event of an emergency, and that the department responsible for handling any new risks is promptly assigned.

For details, please refer to the “Corporate Governance Report.”