JAPAN PURE CHEMICAL : Corporate Information > CSR

The Company’s Corporate Governance-related basic policies are 1) to guarantee the transparency and soundness of management, 2) speedy decision-making and business implementation, 3) clarification of accountability (responsibility for explanation) and 4) speedy, appropriate and fair information disclosure.
Based on these policies, we will discuss the appropriate system for the Company according to changes in the social environment and legal system and further reinforce and review corporate governance.

At the Board of Directors meeting held on May 25, 2006, the Company approved the “Basic Policies for Establishing an Internal Control System.” The Internal Control System is an administrative organ to fulfill corporate governance and the Company strives to reinforce the system.
The Board of Directors consists of six directors (of whom two are outside directors). The Board meets once a month and holds emergency meetings as necessary. To clarify managerial responsibility for each fiscal year, the term of the directors is one year.
Furthermore, the Company adopts the Auditor System and installs the Board of Auditors, which consists of one Standing Auditor and three part-time auditors. The Board of Auditors meets once a month and holds extraordinary meetings as necessary.
To improve the efficiency of decision-making at the Board of Directors’ meetings, we have a Management Council. The Council consists of directors and department managers and discusses critical issues such as management policy and strategies prior to the Board of Directors’ meetings.

To maintain and increase corporate value amid the remarkably changing business environment, it is important to manage various risks surrounding the Company.
For appropriate risk management, the Board of Directors elects one director responsible for risk management and installs a Risk Management Committee, consisting of directors,auditors and employees, that discusses important issues regarding risk management of the overall company.
The Risk Management Committee designates a responsi- ble person for each important issue, compiles a risk manage- ment manual and establishes a management system. Those risks related to 1) Compliance, 2) Disclosure and 3) Environment and Quality (ISO) are managed by a Secretariat for each issue.

For the growth and development of business, we believe compliance in business execution and management is important.
Based on the Basic Policies for Establishing an Internal Control System, determined by the Board of Directors, the Company is reinforcing a compliance system. Specifically, a Compliance Officer is elected to regularly report on the status of ethical and legal compliance to the Board of Directors. The Internal Audit Office, which is independent of the Execution Departmentand directly supervised by the President, regularly implements Internal Audits. The Internal Report System was established so that employees can report violations of compliance to auditors or outside lawyers.
The Company also formulated the Codes of Conduct to ensure that all personnel from the top management to each employee will be informed about codes of conduct and legal compliance.