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. What’s more, NICHIAS is working to raise awareness and prevent compliance violations by conducting surveys among all employees, carrying out training by company instructors, and posting up awareness posters. We have reviewed our Code of Conduct and demonstrated our basic stance towards compliance such as by revising our Compliance Code (8th Edition) for the first time in four years through taking into account changes in social conditions and revisions to the law.

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 2019, we conducted internal audits of 13 business units in NICHIAS itself (11 in sales and 2 at plants) and 19 business units within the group (9 in Japan and 10 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”.

Protection of Intellectual Property

In the company group, intellectual property (IP) is positioned as an important matter in the continuing development of its business.

As a result, with respect to technology created by new product development and new research, we actively promote acquisition of rights and strive to protect technology. When a new product goes to market, the group respects the intellectual property rights of others, conducts the appropriate surveys and checks so that there are no infringements of rights, and responds appropriately to infringements of rights from others. Also, by conducting counterfeit product surveys as appropriate and suitably responding when counterfeit products are discovered, as well as advancing the acquisition of rights for the company’s brands in each country, the group is working to maintain and improve our brand value and ensure the safety of users.

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