Governance Structure

Transparent Management, Proactive Disclosure

To fulfill our social responsibility as a good corporate citizen and to be recognized as having corporate value by our stakeholders, we are working to establish a transparent management structure through proactive disclosure.

Corporate Governance

Corporate Governance Policy

To fulfill our social responsibility as a good corporate citizen and to be recognized as having corporate value by our stakeholders, Hanwa is working to establish a transparent management structure that is compliant with laws and social norms.

Corporate Governance Structure

We have adopted a corporate auditor system and an executive officer system. By building a system that enables more detail-oriented execution of business operations, we are aiming for speed and efficiency in decision-making.

Evaluation of the Effectiveness of the Board of Directors

Since FY2019, we have been analyzing and evaluating the effectiveness of the Board of Directors to further improve the functions of the Board.
An overview of the evaluation of the effectiveness of the Board of Directors and the result of the evaluation can be found at the link below.

Internal Control Policy

To have a corporate governance system that functions effectively so that it reduces risks associated with achieving business goals and facilitates sustained growth and development, we believe it is vital to establish and operate a system of internal controls for performing business activities properly and efficiently.
We review our basic policy on internal control each period and disclose the status of our control activities.

Risk Management

We define "risk" as "uncertainty that may affect the achievement of the Company's business strategy and business objectives" in the Company's “Basic Policy on Risk Management”. And we implement specific measures to control various risks that may arise from business operations within our company group. It is basic concept of the risk management that we contribute to achieving dramatic business growth through proactive investments and business expansion with these measures.

Details of our corporate governance

Thorough Legal Compliance

We believe that it is indispensable for our sustained growth that each employee holds a high ethical standard and acts according to the common sense and rules of society. All our officers and employees comply thoroughly with regulations in daily corporate activities, and we are working to build a corporate culture that is open-minded and ethical.

Regulatory Compliance

In recent years, society is fiercely watching for corporate corruption, and corporate scandals often dominate the news. All our officers and employees comply thoroughly with regulations in daily corporate activities, and we are working to build a corporate culture that is open-minded and ethical.

Compliance Structure

To give form to our Corporate Ethics Philosophy and Corporate Ethical Standards formulated based on our company creed and mission statement, we, through many initiatives, are promoting corporate activities that are lawful, fair, and in harmony with common sense.

Initiatives for Thorough Compliance

(1) Training of Executives and Managers

We created a compliance manual in April 2006 as a guideline that all executives and managers should follow, and we have distributed it to all executives and managers in the Group worldwide in different languages. Many editions of this manual have been created because it is updated in response to various environmental changes or amendments to laws.
The Compliance Committee meets regularly to review our status as to regulatory compliance. It also, for example, holds trainings for new employees and managers, and works to heighten the awareness of each executive and manager as to regulatory compliance.

(2) Hotline

We want all officers and employees of the Group to be able to consult someone about compliance-related problems and report them without restraint. We have multiple internal hotlines for this purpose, and we also have an external hotline that is manned by a law firm. We took care to make available many contact points not tied to the top management so that all Group officers and employees would feel free to consult them and not bear the burden on their own.
We also invite persons who are not a part of Hanwa to provide information or consult us from our website.