At HANEWFOODS GROUP, we believe it is vital to continuously increase our corporate value and rigorously work to earn the trust of society.
In order to achieve these goals, we believe that strong corporate governance is one of the most important elements of our operations, and have therefore organized our group into autonomous divisions and set up a governance structure where an elected COO and administrative director are appointed to each company.
Overview of our Corporate Governance structure
Each division within HANEWFOODS GROUP is responsible for its own management, ensuring that their specialist knowledge can be optimally utilized.
The Senior General Manager of each division is led by a director of HANEWFOODS Inc., who in their role as division managers attend group-wide monthly meetings to report on their division's activities and otherwise exchange information.
Recognizing the importance of establishing the responsibilities and authority of each company within HANEWFOODS GROUP, our group introduced a chief officer system and is governed by a system where a CEO, a COO, and administrative directors are appointed by election.
Role of the Board of Auditors
HANEWFOODS Inc. has a board of company auditors that convenes every three months. The board is comprised of one full-time auditor and two outside auditors, whose roles are to establish audit policies and plans, and to perform the actual audits.
The board of auditors is supported by specialist staff to further strengthen their functionality.
Establishment of the Internal Audit Division
The Internal Audit Division is an independent organization within HANEWFOODS Inc. under the direct control of the CEO. The Internal Audit Division performs internal audits of all domestic and overseas group companies including HANEWFOODS Inc.
The purpose of audits is to confirm and evaluate whether the laws and rules pertaining to operation and management are being complied with. The findings are reported to the CEO and other directors.
Establishment of the Governance Evaluation Committee
In 2001, our serious compliance violation was recognized in relation to the BSE problem confirmed to occur. We have taken steps to strengthen our compliance system to restore the credit lost in the incident. To further clarify that stance, we have established a Governance Evaluation Committee by outside experts. By implementing the committee's various recommendations, we are working to raise awareness within the company and build a system that prevents the same mistakes from occurring again. We will continue to make continuous efforts to ensure such a system.