Basic Policy / Corporate Governance Structure.

Basic approach of corporate governance Corporate governance systems

Management Members

Management Members

Initiatives to Comply with the Code

Initiatives to Comply with the Code


●Ensuring appropriate operations at Group companies

The Company has established Rules on the Management of Affiliated Companies to ensure appropriate business operations at affiliated companies and executes controls based on these rules. In addition, it is required that any coordination among Group companies as well as any action on important matters are first discussed by the Company’s Management Meeting and Board of Directors before decisions are made.
The Company’s Audit Office conducts audits in collaboration with the Administration Headquarters and other business units to ensure that business activities undertaken by Group companies meet unified standards and to confirm the appropriateness and compliance of their operations with laws and regulations as well as the Articles of Incorporation. The Office also provides guidance for improvements in business activities.
Furthermore, Group companies submit the minutes from all Board of Directors meetings to the Company and make monthly reports on business activities, the status of budget implementation, and important matters relating to ensuring the appropriateness of business activities.

●Efforts toward the elimination of antisocial forces

The basic position of the Kaga Electronics Group is to maintain no relationships whatsoever with antisocial forces that threaten social order and safety and to remain resolute in its refusal of all improper demands from antisocial forces as set forth in its Fundamental Compliance Rules and Employment Rules.
In cases where the Company is subject to improper demands from antisocial forces, the General Affairs Department and CSR Promotion Committee work together, acting in collaboration with crisis management advisors and company attorneys on an as necessary basis in their efforts to ensure proper and organized responses to such incidents. The Company also holds regular discussions with company attorneys, meets with police departments and other external specialized organizations, and participates in training and other activities to gather relevant information on antisocial forces.

Risk Management

●Risk management system

Potential risks that the Group faces include factors relating to economic conditions, exchange rates, country risks, price competition, product procurement capabilities, internal brand risks, legal regulation, market risks, major litigation, severance pay obligations, personal information, accidents, the environment, and information management. As part of efforts to create the needed appropriate systems to manage every risk the Group may face, the Company has designated divisions tasked with handling specific risks while appointing risk control officers and managers tasked with spearheading risk countermeasures undertaken by such division.
In the event that a risk materializes, the division responsible for dealing with said risk will immediately make the necessary, appropriate response to minimize damage under the direction of the risk control officers and managers.
In addition, the Company maintains the Risk Management Committee placed under the Sustanability Committee in order to ensure that risks foreseen by the Group are responded to promptly and appropriately.