Internal Control System | Sustainability | DAIICHI KIGENSO KAGAKU KOGYO CO., LTD.

System to ensure directors and employees of the Group perform their duties in accordance with laws and the Articles of Incorporation

The Group will make the Action Guidelines of DAIICHI KIGENSO KAGAKU KOGYO CO., LTD., specific rules for management to fulfill its social responsibilities, well known to its directors and employees to ensure their legal compliance.
The Group will establish internal and external whistle-blowing contact points for the purpose of discovering and correcting legal violations and instances of unfair practices within the Group. In addition, the Group will not treat whistleblowers unfavorably.
The Group will establish the Internal Audit Division controlled directly by the President to audit the appropriateness of the operations of the Group.
Our policy for elimination of anti-social forces is declared in the Action Guidelines of DAIICHI KIGENSO KAGAKU KOGYO CO., LTD. and provided in the Rules for Banning Relations with Anti-Social Forces. Also, efforts will be put into collecting relevant information in cooperation with the relevant police authority.

System concerning the storage and management of information on the performance of duties by directors

Documents relevant to the performance of duties by directors such as minutes of board meetings and requests for managerial decisions will be stored and managed appropriately in accordance with laws and regulations as well as internal rules.

Rules and other systems for the management of the risk of loss by the Group

The Group will establish the Risk Management Committee, collect and analyze risk information, and take preventive measures against risks which may have grave consequences in order to continue its business and fulfill its social responsibilities.
In the event that a crisis occurs, responses will be made in accordance with the crisis management system as set forth in the Rules for Crisis Management.

System to ensure the Group directors perform their duties effectively

The Board of Directors will make decisions on the performance of the important duties based on the Rules for the Board of Directors, and serve a supervising function while receiving reports from each director regarding the Company’s and its subsidiaries’ performance of operations based on the medium-term management plan.
The Group will establish the Management Council consisting of the Board of Directors and Unit Directors, etc. to discuss from multiple perspectives and make decisions on the performance of important duties within the authority of the President.

System to report to the Company on the performance of the duties of directors of the Group companies

The Company will receive timely reports on business performance, management challenges, and other important information of subsidiaries and affiliated companies based on the Rules for Management of Affiliated Companies.

System for employees who are assigned to assist duties of auditors and matters concerning securing of the independence of such employees from directors and the effectiveness of instructions to such employees

The Company, placing no employee to assist with the duties of auditors at present, will assign assistants if requested by auditors, securing their independence.

System for directors and employees of the Group to report to auditors, other systems for reporting to auditors, and system to ensure auditors conduct effective audits

Directors and employees will report the performance of their duties through the attendance of auditors at meetings of the Board of Directors and the Management Council. Auditors may request that directors and employees report to them as necessary, in addition to the above.
Directors and employees of the Group or any person reported to by them will report to auditors immediately if they discover any grave legal violation or fact which may cause substantial damage to the Company or their companies.
The Company will not treat those who report to auditors unfavorably for reason of such reporting.
If auditors make a request for expenses relevant to the performance of their duties, it will be processed appropriately in accordance with Article 388 of the Companies Act.

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