The ALSOK Group includes "Based on two core principles exemplified by ‘arigato no kokoro’ (a feeling of gratefulness and gratitude) and ‘bushi no seishin’ (a samurai spirit), we devote ouselves to protecting the safety and security of our customers and of society as whole." in its management philosophy and includes "Contributing to Society" in its management policies. In line with this philosophy and policy, we are working to fulfill corporate governance through our operations such as, performance of management and seperation of supervisory, swift decision making, establishment of corporate ethics, and securement of management transparency, while endeavoring to remain the corporate group reliable to all stakeholders. Moreover, we place emphasis on information disclosure. We work positively on IR activity such as the execution of visiting every institutional investor and holding analyst meetings for investors and analysts. The ALSOK Group inspects and reviews such as organization structure, by observing the principles in "Corporate Governance Code" laid down by Tokyo Stock Exchange. We submit "Corporate Governance Report" to Tokyo Stock Exchange every year and post to both Tokyo Stock Exchange and ALSOK website. The ALSOK Group aims at the construction of the organizational structure to which the corporate governance functions more effectively while gazing at the trend of the world, and will continue the examination of the measure for various systems.
We adopted the audit & supervisory board member system and are satisfied with its effective full audit that improves governance to our executive team.
ALSOK's director consists of 12 members, including 3 outside directors and audit & supervisory board members consists of 4 members, including 3 outside audit & supervisory board members. The Board of Directors, in principle, meets once a month to make important management decisions and while making a decision of basic management policy and important affair concerning business execution it oversees business execution of the directors and executive officers. Headed by the Chairman and Representative Director, the Management Committee, as a general rule, meets twice a month to discuss matters to be presented to the Board of Directors and the business execution policy based on the decision of the Board of Directors. Audit & Supervisory Board, in principle, meets once a month to consult or to resolve important items concerning inspection. Also, one of the audit & supervisory board member attends the Management Committee and observes management execution condition.
We implemented the executive officer system in June 2002, a company-wide system in April 2010, and also appointed a Chief Executive Officer (CEO) and Chief Operating Officer (COO) on April 1, 2011. The Operating Committee, which is headed by the President and Representative Director, meets, in principle, twice a month. This committee is responsible for deciding what issues are to be presented to the Management Committee and the Board of Directors, and discussing the appropriateness and the effectiveness of operational policies on business affairs in advance. We are proud of these systems mentioned above that enable us to make our business more impartial and transparent.
Still, ALSOK and the outside directors are concluding the contract to limit the onus of damage of the law in Article 423 clause 1 based on regulations of Article 427 clause 1 of the Corporate Law. Amount limit for the damage liability based on the concerned contract is assumed to be high amount, either of the lowest amount limit provided in 10 million yen or Article 425 clause 1 of this law. This is aimed for outside directors and outside audit & supervisory board members to sufficiently demonstrate the expected role.
As for the outside directors and outside audit & supervisory board members, it is assumed to cover the function of observation and supervision of the management team by objective and neutral standpoint. Also, we do not set any basis nor policy concerning independence to appoint outside directors and outside audit & supervisory board members, although we refer to requirements of independent officers fixed by Tokyo Stock Exchange.
Also, outside directors and outside audit & supervisory board members attend meetings of the Board of Directors, at which they offer their opinions on the matters at hand. They receive briefings on the issues to be discussed at meetings of the Board of Directors the day prior to the meeting, allowing them to more effectively monitor management. The outside audit & supervisory board members coordinate with the Inspection Department and the Independent Auditing Corporation employed by the Company in regard to audits by audit & supervisory board members, internal audits, and accounting audits. To facilitate this coordination, the outside audit & supervisory board members periodically exchange information with these bodies.
The participation of the outside directors in these meetings enables them to monitor the operational execution of other directors with regard to Internal Control Operations and other matters from an independent standpoint.
They also evaluate the legality of the measures implemented by Internal Control Operations. To this end, they perform both operational and accounting audits of the organization and review all relevant documents.
The Company employs 3 outside directors and 3 outside audit & supervisory board members; applications have been submitted to the Tokyo Stock Exchange identifying each of these individuals as independent officers.
Number of members and total compensation for each classification in the fiscal year ended March 31, 2016 are as follows.
(Excluding outside directors)
|8 members||¥275 million|
|Audit & Supervisory Board Members
(Excluding outside audit & supervisory board members)
|1 member||¥23 million|
|Outside directors and audit & supervisory board members||6 members||¥54 million|
|Total||15 members||¥353 million|
An annual limit of ¥400 million for compensation of directors and ¥120 million for compensation of audit & supervisory board members has been set by the general shareholders' meeting. The compensation of directors includes a fixed amount calculated according to their positions and whether they are an outside director or not, as well as a performance-linked amount, calculated based on an evaluation of the operational execution performance of individual directors in the previous fiscal year conducted in acordance with predetermined standards. Decisions regarding the compensation of directors are made by the Board of Directors. The compensation of audit & supervisory board members paid as a fixed amount decided in accordance with standards set by the Audit & Supervisory Board.
|1.||Ever since the company started, we have cherished "the ALSOK Charter", that is composed of the founder's spirit and motto of the company. We have encouraged our business activity in accordance with the charter.|
|2.||We watch the execution of function, by establishing "Board Regulations", "Internal Memo Regulations", "Policies of Dividing Duties", and "Policies of Administrative Authority", divide administrative authority, and obligate final decision that exceeds authority in charge.|
|3.||We enacted an "Ethical Rule" as standard for the action based on the ethics with sincere performance of duty.|
|4.||We adopted "Compliance Rule" and made one of the directors as the director in charge of compliance, who reports activity conditions to Management Committee and the Board of Directors' Meeting if necessary.|
|5.||We established "Internal Report Rule" in order that we can construct the internal report system and operate it appropriately.|
|6.||We established the internal audit exclusive jurisdiction department under the direct control of the President. The department regularly inspects management activities at all departments in the headquarters and branches and reports the results to the auditors and directors.|
|7.||Based on the law of Financial Instruments and Exchange Act, we maintain and operate systems to make the financial reporting properly is maintained and operated.|
|8.||We adequately conduct various education such as law, articles of incorporation, and internal rules for directors and employees.|
|1.||Establish an order concerning primary information that show the execution condition of General Meeting of Stockholders record, Board of Directors record, Management Committee record, request for approval, contracts, account book, financial documents, and other services as to conservation management concerned information.|
|2.||Allow directors and audit & supervisory board members to browse these information anytime.|
|1.||Together with establishing "Risk Management Rule" and naming the risk management officer, we estimated and evaluated risks. Person in charge should report to the Board of Directors' Meeting and Management Committee as needed and to come out with needed measures of prevention, reduction, transfer of risks or settle coping strategy when risk occurs.|
|2.||We establish "Disaster Control Regulation", adjust the systems, and measures when natural disaster occurs.|
|3.||Together with establishing "Information Asset Management Rule" and naming the information asset management officer, we formulate the structure to protect the information asset from threats such as robbery, divulgation, falsification, depredation and disasters.|
|1.||The management plan of the mid-term and fiscal year is made based on the business objective.|
|2.||As for the management plan of fiscal year, it is reported to the Director and the Management Committee every month, and the progress management is carried out monthly.|
|3.||"Administrative Authority Regulation" is enacted, and an efficient decision making is done by allotting the administrative authority.|
|4.||The business processing is simplified by the backbone system that uses IT, and is planned to make the management and business more efficient and rationalize.|
|1.||The rule for the business management of the subsidiaries is enacted together with the exclusive competency post set up, and the umbrella administration is carried out. For subsidiaries, besides making report concerning excercise of function, strict guide and supervising toward the subsidiaries is done, by sending the director or the audit & supervisory board member from our company.|
|2.||Significant information concerning the risk of loss for subsidiaries should be reported to subsidiaries competency post based on the rule for the business management, risk correspondence is carried out in cooperation with the group.|
|3.||The subsidiaries shares information with our company through various conferences and in-house electronic bulletin boards, and improve operational efficiency through application of operation system common in subsidiaries. Designing the group`s medium-term management plan and annual management plan, progress management of the plans are carried out the monthly business condition reported from subsidiaries.|
|4.||Our company and the subsidiaries operate the execution of the compliance activity and the internal report system and completely intercept the relation to antisocial forces, and for such occasions, approaches for necessary maintenance of the company structure and cooperation with external specialized agencies are carried out. In cooperation with subsidiaries, internal audit is carried out for significant subsidiaries.|
|1.||The audit & supervisory board secretariat is established, and the employee who assists the duty as the audit & supervisory board member is arranged.|
|2.||The audit & supervisory board secretariat member's personnel affairs are to acquire the agreement of the Audit & Supervisory Board. The audit & supervisory board secretariat members solely comply with command from audit & supervisory board members.|
|3.||The director and employees report to the audit & supervisory board members about an important matter concerning business.The audit & supervisory board members attend the Board of Directors' Meeting and the Management Committee.The internal audit exclusive competency post performs information exchange regularly together with the audit & supervisory board members.|
|4.||Appropriate report is carried out promptly by the directors and employees of the subsidiaries, when the report concerning is desired. Department in charge of internal report, reports significant notify including the notify of subsidiaries to the audit & supervisory board members. Furthermore, for our directors, employees and directors of subsidiaries who reported to audit & supervisory board members are not to be unfavorably-treated for the reason to have been reported.|
|5.||Our company annualy set a certain amount of budget to pay expenditures which come about from the excercise of function of audit & supervisory board members. When the audit & supervisory board members charge for such expenditures, it is handled properly.|
|6.||The audit & supervisory board members regularly exchange opinions or interview with the President and each general manager, and audit each office and subsidiary. The audit & supervisory board members regularly hold the skull sessions with Audit Corporation.|
Our company is especially attaching importance to risk management on the character to assume securing of a safe society to be a company's business. The Risk Management Committee is organized based on the current Risk Management Regulation enacted in 2002, and the risk management director in charge is assumed to be the chairman. Moreover, the risk management examination organization is enacted in the head office and each office, and it is working on the risk management such as identifying the risk, evaluation, the precaution, and the measures idea as all companies are covering.In addition, the risk examination departmental meeting according to the field put in the Risk Management Committee, risk information on each pertinent field is collected, analyzed, evaluated, and the measure for the risk reduction is examined. To attempt the rapid deployment, the organizational structure is maintained much more in an urgent reporting system when the matter of great importance idea is generated and the installation of the task force.
Regarding compliance, the Compliance Committee that makes the compliance director in charge as chairman is organized and is attempting on compliance. The Compliance Committee works for knowing the compliance consideration toward the director and the employee based on the current Compliance Regulation enacted in 2002, and is regularly checking the business activity condition. For earlier detection and the prevention of the problem in corporate ethics, "ALSOK Hotline" was installed in April, 2004, and when encountering a malfeasance, misbehavior, and an anti-ethical act that the employees and officers lies a company, the system that can internally be informed is constructed without receiving a prejudicial treatment. Moreover, as a window of reports, besides the existing internal window, external window has been established on April 1, 2016.
Additionally, in September 2004, the Company established an Information Asset Management Committee chaired by the executive officer in charge of information asset management. The purpose of establishing the committee was to respond as swiftly as possible to changes in the regulatory environment, such as the full implementation of the Personal Information Protection Law in April 2005. The committee undertakes such activities as the development of a structure for managing personal, business and other important information in the Company's possession, as well as the promotion of employee education on this topic.
As for the lawsuit, the dispute, and other legal risk, the legal affairs room is enacted and it corresponds while cooperating with each operations division. Moreover, our company is straightening the system to prevent the risk beforehand as adviser contracts with seven law firms are concluded, and advice and guidance such as events concerning an important legal problem and compliance are received properly. The lawyer is made to take part in the corporate governance through the maintenance of compliance looking up at such advice and guidance.