Shibaura Mechatronics Group promotes thoroughgoing corporate governance, risk management and comprehensive compliance, in order to deserve the trust and reliance of all stakeholders.
The company has established management and auditing systems based on its directors and auditors.
In respect of internal controls, oversight of the management and audit structure is the responsibility of the Management Audit Division, which reports directly to the President and CEO, and which carries out performance audits that center on the appropriateness and efficiency of management. Under this management approach, a system of voluntary audits by individual divisions has also been introduced.
In addition to this, auditors also undertake legal audits that center on legal compliance, and chartered public accountants also carry out financial audits, assuring a comprehensive audit function.
In response to the Financial Instruments and Exchange Act (the Japanese version of Sarbanes-Oxley), we structured internal control for financial reports during 2007, mainly through the Internal Control Promotion Division established in September 2006, and in FY2008 evaluating the state of affairs in respect of maintenance and operation.
We established our CSR Committee in April 2005, which centralized various CSR related activities which had been previously done by a lot of parties with no relations with each other and started the activities in systematic manner. The CSR Committee has responsibility for decision-making on CSR activity policies for Shibaura Group and promotes them. It also directs the activities of the Global Environment Committee, the Social & ES* Activities Committee and the Risk Compliance Committee.
* ES: Employee satisfaction
Towards fulfilling its social responsibilities, Shibaura Mechatronics Group defines model standards for action in the “Shibaura Mechatronics Group Code of Conduct.” The Code uses such principles as legal requirements and society's ethical standards as a basis for achieving compliance and risk management in business activities. The basic management policy for compliance must be grounded in the corporate culture, and must be able to achieve higher levels of social trust, deliver proactive risk management, and, if by some chance their is an instance of risk, support a system able to respond appropriately.
In addition, we have established an internal reporting system, the “risk consultation hotline,” that is designed to prevent risk growing to the point where it becomes a major issue.
*1: CRO: Chief Risk-Compliance Management Officer
*2: Risk Owner: The head of a department facing a risk issue
