Group Governance

With regard to business management of group companies, prior approval of the parent company is required for important decisions in accordance with the Rules on the Management of Affiliates, while respecting the independence of group companies. Particularly important matters as defined in the rules require approval by the Board of Directors. In addition, each group company reports its business conditions and financial results to the department in charge of group company management on a regular basis. Reports are also made in a timely manner to the parent company in the event of disasters, accidents, misconduct, or other events, including environmental and occupational safety issues.
To ensure proper group governance, the Internal Audit Office supports the group’s internal control promotion system, while conducting periodic audits of group companies and providing guidance on areas for improvement. In addition to receiving reports such as those described above on a regular basis, Audit & Supervisory Board members verify the business reports of group companies and exchange information and opinions at subsidiary auditor liaison meetings. In particular, for matters related to companies that have newly joined the group and group companies of high importance, Audit & Supervisory Board members directly engage in dialogue with the management team and managers and personnel in administration divisions through onsite audits and inspections or via an online format.
Through these activities, the group will further improve the effectiveness of group governance.

In January 2025, we established our IT Governance Policy and Information Security Policy as group policies and began IT control audits. In fiscal 2024, 14 companies completed their audits, and audits are underway at 15 companies in fiscal 2025. The audits are scheduled for completion at all group companies during fiscal 2026. Furthermore, we established a CSIRT* that launched during fiscal 2025 with the aim of raising the level of cyber security.