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Corporate Governance
Basic policy
Global marketplace is changing rapidly and, in this circumstance, DENSO must keep and increase the long-term business performance. In order to achieve this, the Company is making efforts to establish a corporate governance, recognizing its importance to strengthen group competitiveness.
Promotion structure
DENSO has adopted the corporate auditor system and, in addition to the statutory bodies such as General Meeting of Shareholders, Board of Directors, Board of Corporate Auditors, and Accounting Auditors, the Company has furnished various internal control procedures. At the same time, through ongoing provision of the information about business conditions to its shareholders and investors, the Company practices sound, efficient, and transparent management. To expedite the decision-making process and operation, DENSO has appointed directors (13 in total) that are responsible for each business division to connect management and locale. In addition, the Company has appointed managing officers (27 in total) dedicated to business execution in each responsible department. Furthermore, DENSO has set the term of office for its directors to one year in order to build a nimble management structure capable of responding to a changing management environment and to clarify management responsibilities during each fiscal year.
DENSO's Corporate Governance System
Management oversight functions
Two standing auditors and three external auditors are responsible for monitoring the execution of duties by directors, as well as the business operations and financial conditions of the subsidiaries of DENSO worldwide. The external auditors comprise the executive from another company, academics, and lawyers. They attend Board of Directors and Board of Corporate Auditors, offering advice and exchanging opinions from a broad perspective. In addition to the auditors, dedicated internal audit departments have been established in its major group companies around the world.
Furnishing internal controls
Corporate internal control systems have been strengthened following the new “Companies Act” enforced in May 2006 in Japan. Also, in order to ensure the credibility of financial reporting for fiscal 2008, the Company is obliged to file an Internal Control Report pursuant to the Financial Instruments and Exchange Law in Japan. To respond to these trends, DENSO is reviewing and reexamining its operational process and document control structure to strengthen the internal control.
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