Our company has adopted an audit and supervisory board system, consisting of eight directors (including three outside directors) and four auditors (including two outside auditors), forming the board of directors and the audit and supervisory board. Furthermore, the introduction of executive officers system has established a framework that functions promptly and reasonably for significant management decisions and business execution, clarifying authority and responsibility.
Outside directors monitor decision-making in the board of directors from an objective and neutral standpoint and supervise business execution. Outside auditors attend the board of directors meetings, listen to explanations from directors regarding important management matters, express their opinions, and conduct audits of the directors' performance of duties. The supervisory function of outside directors and the audit function of outside auditors ensure objectivity and neutrality in the management monitoring function.
Additionally, in order to enhance the fairness, transparency, and objectivity of procedures related to the nomination and compensation of directors, we have established a nomination and compensation advisory committee as a consultative body of the board of directors. The committee consists of two internal directors and three independent outside directors, with an independent outside director serving as the chairman.
Internal Control Systems
Under the "Basic Policy on Internal Control," our company has established a system and continues to make ongoing efforts in accordance with it. As a consultative body, we have a standing "Internal Control Committee" composed of internal directors, which is responsible for establishing the framework and overall design for promoting the internal control system. Additionally, two subcommittees, namely the "Compliance Promotion Subcommittee" and the "Financial Reporting Subcommittee," have been set up under the committee, with executive officers (department heads with headquarters functions) at their core. These subcommittees work on specific areas of focus.
The Internal Control Committee conducts regular reviews and evaluations of the progress and operation of the established system, and reports periodically to the board of directors. Furthermore, in compliance with the Financial Instruments and Exchange Act, we disclose an "Internal Control Report" that confirms the effectiveness of internal control activities related to financial reporting.
Risk Management System
In order to address the risks surrounding our company, we have established a comprehensive cross-functional risk management system and are working to strengthen risk management based on the company-wide policies. To ensure swift and appropriate responses in the event of unforeseen circumstances, we have set up a "Crisis Management Committee" and are actively engaged in establishing and operating the system, conducting simulations, and training during normal times. We strive to enhance overall risk management throughout the company.
Furthermore, as part of our preparedness for emergencies, we have established a dedicated organization called the "Business Continuity Planning (BCP) Promotion Office" directly under the president's supervision. This office is responsible for building mechanisms for business continuity and promoting systematization to contribute to sustainable development and the creation of long-term corporate value.
CSR Promotion System
Based on our corporate philosophy of "Development and Perpetuity," we strive for sustainable growth and the creation of long-term corporate value, aligning with the significance of our existence. We actively promote and engage in CSR activities by addressing social issues through our business.
Promotion System and Key Areas of Focus
We regularly hold a "CSR Promotion Meeting" chaired by the officer in charge of CSR, with members from relevant departments involved in CSR. In this meeting, we provide direction for CSR activities, assess progress, and share information with the management team, ensuring necessary developments.
Furthermore, the considerations for each area of focus are classified using international guidelines such as ISO 26000 and the Sustainable Development Goals (SDGs) as reference, taking into account the opinions of our stakeholders.