Corporate Governance

We are building a governance structure based on our view that our paramount task is to heighten the efficiency of our management in order to realize continual growth in the dramatically changeable electronic parts market. We will be raising the quality of our companywide governance structure by rounding out our evaluation structures and internal control, and furthermore will be tackling pursuance of business transparency and soundness with regard to the stock market and society, so as to fulfill our responsibility as a global enterprise – that is to say, as a public institution.

Our Board

We believe that the ability to have objective and impartial management oversight from the exterior is important for corporate governance. Based on that belief, we have adopted a system of auditors and are building a governance structure composed of a Board of Directors, a Board of Auditors, and an Internal Audit Office with direct control over executives. Also, each month we hold a Management Conference attended by the directors and auditors (who include external auditors), as a venue for deciding policy and measures for business execution.

Directors

At the Board of Directors, deliberations of important matters are conducted and the directors mutually oversee the contents of business execution. Also, we are putting in place supervisory structures for business execution, having introduced a corporate officer system in an effort to clarify the responsibilities and functions of directors.

Auditors

The auditors attend important meetings such as those of the Board of Directors, and state their views after listening to explanations of important matters regarding business. They also conduct audits concerning the directors’ performance of their duties from the perspectives of legal compliance and propriety. There are three auditors, two of whom are external auditors without any special interest, thereby reinforcing the capability for impartial and objective oversight from the exterior.

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Risk Management

Corporate activities involve risks of various kinds – business strategy risks, legal compliance risks, labor risks, quality risks, financial risks, marketing strategy risks, environmental preservation risks, disaster risks, IT related risks, and so on. We have established Risk Management Rules in order to reduce such risks and to be able to respond rapidly to contingencies. Pursuant to the Risk Management Rules, we have set up a Risk Management Committee chaired by a Risk Manager appointed by the President.

Risk Management Committee

This Committee identifies and assesses risks present inside the company from multi-angled perspectives. For that purpose, it gives instructions on, and makes reports concerning, responses to risks, causes of risks, risk prevention/discovery frameworks, the monitoring situation, and so forth, to the various department heads. It also gives guidance for framing of regulations, implementation of training, and preparation/distribution of manuals in the various departments.

Risk Management Committee Chairman

As the person with overall responsibility for companywide risk management, the Risk Management Committee Chairman reports the risk management situation to the Board of Directors and Board of Auditors, based on the risk assessment results acquired at the Committee meetings.

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