Our company values all its stakeholders, from customers to shareholders, and from employees to the society at large. One of our main management goals is to achieve sustainable profitable growth and to increase the profit for shareholders. To do so, we strive to strengthen the supervision and audit functions of the Board of Directors, Audit and Supervisory Committee, etc., and pursuant to laws and regulations to ensure transparency and objectivity to monitor and audit all aspects of our management and business. We also comply with the updated corporate governance to further protect or prioritize our investors and shareholders.
To further monitor and audit the supervisory function of the Board of Directors with corporate governance, we have moved from an Audit and Supervisory Board to an Audit and Supervisory Committee, as approved by the 17th shareholders’ meeting of the company on December 21, 2017. The main structures of our company are:
The board comprises six executives (five non-members of the Audit/Supervisory Committee and one Outside Director) and three executives (all are the members of the Audit/Supervisory Committee and Outside Directors), and convenes once a month. Additional Board of Directors meetings may be held whenever necessary. The Board of Directors is responsible for overseeing the management and governance of the company, as stipulated by laws and regulations, the Articles of Incorporation and the Company’s related regulations.
Executive Officers are responsible for executing their duties under the supervision of the CEO, in accordance with the management policies determined by the Board of Directors. They share the managing responsibilities alongside the Directors. This framework makes it clear that the Board of Directors is responsible for decision-making on important management matters, and for the centralized supervision of business execution. It allows for quicker decision-making for management policies by the Board, and improves the effectiveness of business execution supervision. As a result, it contributes to further strengthening the Company’s corporate governance.
To separate management supervision and execution, a system has been established in which the Executive Officers, under the leadership of the CEO, assume responsibility for the regular business execution. This aims to further enhance corporate governance and strengthen business execution capabilities. The Management Committee, consisting of six executive officers, acts as an advisory body to the CEO on important matters related to the business execution.
The committee comprises three audit and supervisory committee members (all are Outside Directors), and convenes once a month. Additional meetings may be held whenever necessary. These members rely on their expertise and extensive experience in areas including finance, accounting, or legal affairs to independently audit the Directors’ performances/duties. Also, we strive to ensure the effectiveness of the internal audits and accounting audits via our internal audit group and accounting auditors, to exchange information and opinions.
Our Internal Audit Team reports directly to our CEO. This team verifies that the internal control system based on our Basic Policy works, and reports its results to the audit-related departments with appropriate guidance, as well as to the CEO and the Audit and Supervisory Committee. To ensure that the audit process is effective and efficient, Internal Auditors, Audit and Supervisory Committees, and Accounting Auditors collaborate and exchange information as needed. This helps to improve the overall audit quality.
