The board of directors is the entity that makes decisions and implements and supervises business operations.The company optimizes the number of directors, strengtheneds the functions of the board of directors, and enhances the supervisory functions of theboard of directors.
The board of auditors comprises of all corporate auditors. This board formulates the audit plan according to the rules for the board of auditors, audit standards for auditors, relevant laws, and articles of association, and this board audits management by board of director. Besides, corporate auditors attend important meeting such as the board of directors' meeting, coordinates with the internal audit division and accounting auditor while monitoring business conditions and property, and they periodically exchange opinion with the representative director.
With regard to business execution structure, the company has adopted executive officers system for "Separating execution and supervision". As for the organization structure, the company has adopted business division structure with the fundamental understanding of clearly defining authorities based on job duties and approval criteria. In addition to quick decision making by appropriate delegation of authorities, implementation of decisions, and clearly defining profit and loss responsibility of business divisions including affiliate companies, the company has adopted budget system for setting and managing performance goals. In this manner, the company executives its business in an efficient manner across the group. For achieving the goals set in medium term business plan and annual policy, the company has introduced and deployed policy management for proposing and implementing important measures according to the policy. Business divisions act as the pivot for implementing them. Besides, the company has setup a management council, where in addition to discussing important business matters, supervision of business operations is done and guidance is provided based on the reports receiving from business divisions and head office divisions with regard to the matters set forth in the reporting standards, and the status of achieving annual policy and business plans.
With respect to such business execution structure, robust government has been put in place through audit functions of board of auditors and accounting auditors as a function of supervising the execution of business operations by the board of directors. Besides, when legal advice is required, legal advisors are consulted for getting appropriate legal advice.
Corporate governance system