Corporate governance

We at the NICHIAS Group believe that enhancing transparency, fairness and efficiency in management and stably improving our corporate value over a long period of time are the top priorities for the management.

Strengthening Corporate governance

The NICHIAS Board of Directors comprises eight directors who are highly knowledgeable and experienced in the company businesses, and three outside directors who contribute proposals from an independent standpoint. They hold meetings on a specific day each month and extraordinary meetings when necessary to make important managerial decisions. Management meetings are also held, in principle, on a weekly basis for consideration of matters for approval, issues on company-level management, and important individual matters.

Also, the Board of Company Auditors is made up of outside auditors who are knowledgeable in specialized fields and full-time auditors with experience in operations at NICHIAS to ensure the objectivity and neutrality of the managerial monitoring system, and actively expresses its opinions concerning management.

Corporate Governance System Chart

Compliance

Nichias’ HQ Compliance Committee, which meets each month, and Divisional Compliance Committees, which hold quarterly meetings at their respective workplaces every three months, provide a basis for such activities. Nichias has established a General Hotline by way of a third-party organization to achieve a more transparent system. To meet the expectations of its customers and society and fulfill its responsibilities, Nichias continues to create an organization and culture that puts compliance first.

A Compliance Framework Rooted in the Workplace

To promote compliance from a Group-wide perspective, Nichias has established a Compliance Section under the Corporate Administration Division as a specialized organization.

The Compliance Section, in addition to planning and implementing specific measures in line with Nichias’ compliance activities policy, ascertaining the state of compliance at each workplace, and making suggestions and giving advice on issues, deals with feedback and matters sent to the Compliance Counter (internal whistleblower contact point) in a fair and honest manner.

Furthermore, Divisional Compliance Committees are organized at each office and group company in Japan and overseas to facilitate compliance, and efforts are taken in a proactive spirit, such as formulating and educating everyone on unique action guidelines that address the issues of each particular workplace.

Compliance System Chart

Educational Efforts to Increase Compliance Awareness through Continuous Communication of Information

The Group regularly communicates compliance information to promote a better understanding and practice of compliance.

The Compliance Portal Site on the company intranet provides content to understand the essence of compliance through themes linked to activities being undertaken as well as real-life examples. The Divisional Compliance Committees of each business site and group company play a central role in communicating information to all employees.

Internal Control Assessment

In order to improve the corporate values of the entire Group, we are maintaining a system for internal controls and organizing an evaluation structure for it. In order to clarify fairness and independence, we are establishing an internal control auditing office under the direct control of the president and systematically implementing internal auditing of the group.

In fiscal 2020, partially switching to remote-based audits due to the Covid-19 pandemic, we conducted internal audits of 12 business units in Nichias itself and 8 business units within the Group (7 in Japan and 1 overseas). We have confirmed that the management conditions in each of these business units are excellent. We also drafted and submitted an “Internal Control Report” determining that the internal controls concerning financial reporting of the group were effective.

Protection of Intellectual Property

The Nichias Group considers intellectual property to be important and actively promotes the acquisition of intellectual property rights for newly created technologies. When a new product goes to market, the Nichias Group respects the intellectual property rights of others, conducts the appropriate surveys to check that there are no infringements of rights, and responds appropriately.

Also, by conducting counterfeit product surveys as appropriate and dealing with any issues that arise, as well as advancing the acquisition of rights for the company’s brands in each country, the Nichias Group is working to maintain and improve our brand value and ensure the safety of users.

Page Top