ESG
Corporate Governance
Corporate governance status
Our company considers the establishment of corporate governance to be one of our most important issues.
In addition to audits conducted by the General Meeting of Shareholders, the Board of Directors, and accounting audits, we have established a Legal Affairs and Audit Office and a Compliance Committee, and are working to strengthen compliance and risk management.
（1）Contents of company institutions and status of development of internal control system
In order to speed up management decision-making and clarify responsibility for business execution, our company has introduced an executive officer system since fiscal 2000, in which executive officers selected by the board of directors carry out business operations and, in principle, meet once a month. Directors and corporate auditors supervise business execution through the Board of Directors and various other meeting bodies.
Additionally, we have established a Legal Affairs and Audit Office with the primary purpose of establishing an internal control system. This is to clarify the social responsibilities that a company should fulfill, including internal controls, build the necessary mechanisms, send messages both inside and outside the company, and control the entire group.
Furthermore, regarding issues that require important legal judgments and cases related to compliance, we consult with external lawyers with whom we have entered into advisory agreements and receive advice as necessary.
（2）Status of development of risk management system
Our company understands and evaluates risks from a variety of perspectives, prioritizes risk management items based on frequency of occurrence and scale of damage when they occur, and works as a team to promote risk management, consisting of officers in charge and heads of departments responsible for management. We are taking concrete measures under a preparatory organization.
In addition, we are reviewing our existing code of conduct, compiling it into the “Kinugawa Group Code of Conduct,” and distributing it to all employees. We also carry out training to ensure thorough awareness and strive to instill compliance with corporate ethics. Furthermore, we have established a “Compliance Committee” to further develop our code of conduct, resolve issues, promote awareness activities, and strive to improve corporate ethics.
（3）Organization of internal audits and audits by corporate auditors
The Legal Affairs and Audit Office investigates, checks, and provides guidance on whether operations are being carried out in accordance with various laws and regulations, the company’s various regulations, and business plans, and whether they are being carried out effectively and efficiently.・We are conducting internal audits for improvement.
In addition to attending various meetings such as the Board of Directors meetings, corporate auditors audit business execution based on established audit plans and division of duties. In addition, we exchange information with the accounting auditor regarding the results of accounting audits at the end of the fiscal year, interim period, and during the fiscal year, and discuss important accounting issues from time to time.