Organizational Governance

Corporate Governance

Aiming to operate with fairness and transparency

AISIN strives to develop amicable relations with all stakeholders amid its steady growth and expansion over the long term in order to maximize its corporate value. To achieve that, we believe that maintaining fair and highly transparent management activities is of paramount importance in our role as a good corporate citizen trusted by the international community. We are committed to enhancing corporate governance through measures such as appointing three outside directors and actively complying with the Corporate Governance Code, which the Tokyo Stock Exchange has brought into effect as part of a long-term strategic initiative implemented by the Japanese government.

System

Aisin Seiki has adopted the Audit & Supervisory Board system and has established a General Meeting of Shareholders, Board of Directors and Audit & Supervisory Board as statutory bodies.

  • Board of Directors
    The Board of Directors meets once a month and is responsible for overseeing the execution of business operations and passing resolutions on important management matters.
  • Audit & Supervisory Board
    The Audit & Supervisory Board is comprised of five members, including three external Audit & Supervisory Board members. Together with monitoring the execution of duties by directors, Audit & Supervisory Board members monitor the status of affairs in respective business divisions to ensure that management and the execution of business operations are being carried out properly.
Corporate governance structure (Aisin Seiki)

Improvement and strengthening of the internal control system

Aisin Seiki is strengthening measures based on the Basic Policy Concerning the Establishment of Internal Control, which was approved by a resolution of the Board of Directors.

Specifically, after formulating activity policies through committees such as the Business Ethics Committee, the Risk Management Committee, the Company-wide Environmental Committee, the Export Trade Control Committee and the Central Safety and Health Committee, employees are educated on these policies through guidance and training. Aisin Seiki then carries out monitoring by committee members and internal auditing to verify the effectiveness of such activities through genchi genbutsu (go and see for yourself).

This series of activities is implemented on a global basis through meetings among AISIN Group companies and information sharing between functional departments.

Additionally, a summary of all activities geared toward improving and strengthening internal controls is reported at a meeting of the Board of Directors held at the end of the fiscal year to verify the adequacy of these initiatives.

Global audits and risk management

The AISIN Group identifies risks that could have a serious impact on its corporate operations. Group companies collaborate globally to strengthen the risk management system and enhance measures to prevent risks from materializing. The goal is to create a company with a strong resistance to risk.

In response to the rapid globalization of business, we convene the Managing Officers Conference, comprised of auditors and risk management officers from the six core Group companies. Initiatives are led by the Enterprise Risk Management (ERM) Department as the supervisory department in charge of auditing and risk management. The ERM Department confirms risks and issues that are common throughout the AISIN Group. Information is shared to ensure that countermeasures are effectively implemented. AISIN also regularly convenes the Practical Business Conference and the Liaison Conference consisting of persons in charge of auditing and risk management at the 13 main Group companies including Shiroki Corporation from fiscal 2017, as we work to improve and standardize our capabilities in this area.

Looking ahead, Aisin Seiki intends to further encourage cooperation within the Group and undertake integrated activities that combine auditing and risk management steadily and from a global perspective.