Corporate governance

Our Fundamental Way of Thinking

We believe that to increase the value of our company, it is important to adapt quickly and accurately to changes in the business environment. We recognise corporate governance as the mechanism that makes this possible, and we are working to strengthen it.

Corporate Governance Structure

Overview of Company Bodies

1. Board of Directors

The Board of Directors consists of 7 members, three of whom are outside directors.
The Board of Directors holds monthly meetings and special meetings as needed to make decisions and provide oversight on matters specified by law and other important management issues.
Outside directors also attend meetings of the Board of Auditors to cooperate with and obtain information from the Board of Auditors.

2. Nomination and Compensation Committee

Chaired by an independent outside director and consisting of four directors, three of whom are outside directors, the Committee meets regularly to discuss matters related to the nomination and compensation of the President, directors and entrusted operating officers and to provide advice and recommendations to the Board of Directors.

3. Management Committee

The Management Committee consists of all directors and entrusted operating officers and meets regularly to review budget plans and other necessary matters to ensure the prompt execution of important management matters and to review the results.

4. Executive Management Committee

Chaired by the CEO and consisting of other entrusted and employed operating officers, the Committee meets once a month to discuss matters to be submitted to the Board of Directors and report on each other's operations, with the aim of facilitating the smooth execution of business operations.

5. Sustainability Committee

Chaired by an entrusted operating officer and consisting of other entrusted operating officers, etc., the Sustainability Committee meets regularly.
The Committee deliberates on matters such as the formulation of policies and strategies, the planning of initiatives, the monitoring of progress towards goals and the identification of critical issues (materiality) regarding sustainability of the Group.
Recommendations are presented to the Board of Directors for important matters.

6. Board of Auditors

The Board of Auditors consists of three corporate auditors, including two outside auditors, and meets once a month to discuss and decide on audit policies, plans and other important matters related to the audit.
Each member of the Board of Auditors attends important meetings, such as those of the Board of Directors, and conducts reviews of business operations as required.
The external directors attend the Board of Auditors meetings on a regular basis to share information and exchange opinions in order to promote cooperation.

Compliance Framework

We believe that it is essential to our corporate management that the officers and employees of our company and its subsidiaries comply with the law, the Articles of Incorporation and the basic principles of our business operations. Measures have been taken to establish and promote a compliance structure, including the development of internal regulations, the designation of officers and departments responsible for compliance matters, and implementation of employee training.

In addition, we have established internal and external reporting channels for the prompt reporting of significant findings related to violations of law or other compliance issues. We have also established an internal reporting system to ensure that individuals who report such matters are not subject to unfair treatment as a result of their reporting.

Corporate Governance Report