Governance

Compliance

Internal Governance

Based on the Companies Act, Sodick enacted its Basic Policy on Internal Governance Systems at the Board of Directors meeting on May 17, 2006, in order to ensure propriety in our operations. It was subsequently revised at the Board of Directors meeting on April 17, 2015. This internal governance system strives to build more optimal and efficient structures through continuous reassessment and improvement.

Compliance Structure

• Sodick has set down compliance regulations as well as the Sodick Group Action Guidelines for Corporate Ethics and Standards for Corporate Behavior (Compliance Guidelines). These form a code of conduct whose purpose is to encourage group officers and employees to act in ways that conform to laws, the articles of incorporation, and social codes. To ensure that they are thoroughly adhered to, the company provides training and education on them to its officers and employees.
• Sodick evaluates the effectiveness of its internal governance systems through its Internal Audit Office. The results of these evaluations are reported to the directors and Audit & Supervisory Board Members. The company has also established a Compliance Hotline (whistle-blower system) whose purpose is to quickly discover and rectify compliance infractions or potential instances thereof.
  (For details, please refer to "Sodick Group Corporate Code of Conduct (Compliance Guidelines) ".)

Risk Management Structure

• Sodick has established basic rules for risk management. The company works to determine, analyze, evaluate, and take appropriate measures to avoid the risks present in each department. To prepare for the occurrence or potential occurrence of unforeseen situations that would have a major impact on management, the company has also established a Risk Management Committee and set up the necessary preemptive policies on responding.
• The Risk Management Committee engages with monitoring and overseeing the company-wide risk management situation, and reports important risks to the Directors and auditors.