We continue to improve and enhance our corporate governance system while upgrading our internal control system to ensure that operations are conducted in an appropriate manner.
We believe that responding effectively to the changing business environment and maximizing corporate value through the enhancement of Kikkoman Group management form the true basis for running a company with the mandate given by shareholders. We also consider one of our most important management priorities to be executing sound governance in order to fulfill our corporate responsibilities to all stakeholders.
Corporate Governance Framework
Kikkoman Corporation employs a corporate auditor system. We strive to improve and enhance our corporate governance framework with the aim of achieving greater management transparency, clearly defined management responsibility, speedy decision-making, and stronger management oversight.
In March 2001, we introduced a corporate officer system and transferred authority for business execution to corporate officers in an effort to streamline operational responsibilities and speed decision-making and business execution. In June 2002, we established a Nominating Committee to nominate outside directors and outside corporate auditors as well as a Remuneration Committee in order to improve management transparency and strengthen management’s oversight function.
In October 2009, we shifted the Group’s management system to a holding company structure. Individual operational companies will enhance their ability to create value in line with their own areas of authority and responsibility based on a Group management strategy determined by the holding company, thereby maximizing the Group’s overall corporate value.
Internal Control System
Establishing an internal control system that ensures proper execution of business practices is high on our corporate agenda. Accordingly, we have been making Group-wide efforts to develop an enhanced framework for ensuring effective and efficient operations as well as compliance with laws and regulations.
We periodically review and update a basic policy for “Establishing an Internal Control System” that the Board of Directors adopted in May 2006. In addition to establishing an Internal Control Committee and Internal Control Department in November 2008 in order to comply with a new internal controls reporting system mandated by the Financial Instruments and Exchange Act, which went into effect in April 2008, we have both adopted a basic policy concerning internal controls as they relate to financial reporting and established a structure for strengthening internal controls related to financial reporting.