The Company acknowledges the significance of maintaining an effective and efficient internal control system, along with enhancing its management functions. In light of these crucial management considerations, the Board of Directors has formulated a fundamental policy for establishing an internal control system. This policy will serve as a guiding framework for ensuring the proper operation of internal controls and promoting efficient management within the organization.
- (1) System to ensure that the execution of duties by directors and employees complies with laws and regulations and the Articles of Incorporation
To ensure compliance with laws, regulations, and the Articles of Incorporation, we will establish a comprehensive company-wide compliance system, employing the following measures to enhance its effectiveness, while consistently striving to bolster and refine it.
- 1) As a corporation with corporate auditors, our company guarantees the legality of directors' actions through oversight and audits conducted by the Board of Directors. Directors are obligated to carry out their responsibilities in alignment with the resolutions adopted by the Board of Directors.
- 2) Communicate the established 'Segregation of Duties Guidelines' throughout the organization.
- 3) The Internal Audit Office, responsible for internal audits, monitors internal compliance and provides regular reports to the Board of Directors.
- 4) Early detection and prevention of scandals through the whistleblowing system.
- (2) System to ensure efficient execution of duties by the Board of Directors
The Board of Directors will establish company-wide management objectives, and each responsible director will create and implement detailed strategies to attain these goals. To enhance management efficiency, the Board of Directors will oversee and manage the progress.
- (3) System to Ensure Proper Operations Across the Corporate Group Comprising the Company and its Subsidiaries
The System for Ensuring Proper Operations in the Corporate Group Comprising the Company and its Subsidiaries: Each department director and the presidents of affiliated companies are entrusted with the responsibility and authority to ensure the correct execution of business in their respective departments. They are expected to enforce compliance with laws and regulations, establish a crisis management system, and conduct their duties in a manner that is both appropriate and efficient.
- (4) System for storing and managing information related to the execution of duties by directors
Information related to the execution of duties by directors will be documented in accordance with document management regulations and stored and managed appropriately. Directors and Audit & Supervisory Board Members will have continuous access to these records.
- (5) Other systems to ensure that audits by Audit & Supervisory Board Members are conducted effectively
- 1)Audit & Supervisory Board Members will maintain regular communication with the Representative Director concerning significant auditing matters and work to exchange information with other Directors, Audit Corporations, and subsidiary Directors, among others.
- 2)Audit & Supervisory Board Members will maintain close communication with the Internal Audit Office and collaborate effectively with the Administration Department and the Corporate Planning Office to enhance the effectiveness of their responsibilities.