1. CORPORATE GOVERNANCE
1.1.Our basic idea of corporate governance
We recognize the reinforcement and enhancement of corporate governance as our most important business challenge for the sake of the maintenance and improvement of our long-term competitive power in the global market. We will also promote efficient business administration as well as fulfill our social responsibilities toward stakeholders, and try to increase our corporate value in order to establish structures that are more profitable.
1.2.Summary of our corporate governance system
- As a company with a board of corporate auditors, we ensure the appropriateness of business judgment by inviting five independent outside officers to take the role of management control with an objective stance and by gaining helpful advice from many-sided points of view.
- Three outside director and two outside corporate auditors are reported as independent officers who are unlikely to have a conflict of interest with general shareholders.
- With regard to the administration of the board of directors, the board consists of nine directors (this is the appropriate number for making quick decisions) and meetings thereof are held more than once a month.
- Headquarters' General Managers' meetings, which consist of directors other than outside ones, executive officers, headquarters' general managers, and full-time corporate auditors, are held more than once a month, and attendants exchange communication on and make adjustments to business operations.
In our corporate activities designed to realize our management policies on the basis of our management principles, we sincerely recognize the importance of fulfilling our social missions and responsibilities as a corporation, and ensure such fulfillment in all situations in the constantly changing management environment by clarifying the guidance and standard of action to be taken by each employee in the form of the "HRS Code of Business Conduct" in March 2004.
The "HRS Code of Business Conduct " was revised in 2007; as a global corporation, we made the Code into a rule commonly applied to domestic and overseas offices; translated it into English, Chinese, and other local languages; and deployed it overseas. The Code was also re revised in 2012.
On the basis of this Code, we are constantly providing trainings on compliance with the goal of ensuring that each employee can honestly act with a high ethical standard.
In addition, we introduced the internal report system in 2008.
3. RISK MANAGEMENT
3.1.Our approach to risk management
For the purpose of appropriately responding to various risks surrounding us, we have established the "Risk Management Committee," consisting of full-time directors and executive officers, and its subsidiary organizations, and shared risks associated with business performance, thereby engaging in risk management.
3.2.Establishment and Dissemination of the Business Continuity Plan
One of the measures against risk is to establish an action plan on continuing or restarting within a necessary time frame, business activities in the event of unforeseen circumstances that may suspend the core business, and to make this plan known to everyone.
In 2009, we established this Business Continuity Plan (BCP), in which the new influenza, as well as large-scale earthquakes and fires, was taken as assumed risk and measures against such risks were incorporated. In addition to making the BCP known to our employees, we are advancing the preparations against emergencies even under normal circumstances.
With regard to information security, we established an information security policy in 2008 and are now acting in accordance with that policy, providing e-learning so that not only our employees but also all those concerned who handle business information may understand and put into practice the contents of the said policy.