The Company is committed to enhancing corporate governance on an ongoing basis for the purpose of seeking sustainable growth and increased corporate value over the mid- to long-term, based on the Press Kogyo Group's "Principles of Management."
The Company formulated "Corporate Governance Guidelines," and "Corporate Governance Report," which provides for the Company's concept and system of corporate governance, progress of the establishment thereof and operating policies there for, etc.
The Company is a company with Audit & Supervisory Committee and makes efforts to increase the effectiveness of corporate governance, ensuring the Board of Directors makes important decisions and supervises the execution of operations or promoting efficient management and accelerated execution of operations by introducing the managing officers system, as well as enhancing the internal auditing system for the purpose of strengthening the functions of the Audit & Supervisory Committee. The operations by, functions of and activities of each organization, etc. are as follows:
Managing Officers System
The Company has introduced the Executive Officers System and promotes efficiency and acceleration of management decision-making and execution of operations, separating management functions from operation execution functions as well as ensuring the small size of the Board of Directors.
Executive Officers responsible for executing operations attend the management meeting (twice a month) and report and discuss matters of significance with respect to each of departments which such Executive Officers are in charge of, as needed. Full-time Audit & Supervisory Board Committee attend the management meetings and express their opinions, as needed.
Board of Directors
The Board of Directors holds a meeting once a month in principle and supervises the execution of operations and makes important decisions. The Director's term of office is one (1) year for the purpose of annually ensuring the most appropriate management system with the change of the managerial environment.
Audit & Supervisory Committee
The Audit & Supervisory Committee holds a meeting once a month in principle and audits and supervises Directors’ execution of operations. It consists of five (5) Directors (which includes four (4) External Directors).
Nomination & Remuneration Committee
The Nomination & Remuneration Committee, as a voluntary advisory body, deliberates on consultation with the Board of Directors and submits the proposals to the Board of Directors.
Our representative director and president serves as chairman of the committee, which includes at least three members, including the chairman, and in which the majority of the members are external directors.
Skill Matrix of Directors
The Company established the Internal Control Dept. in October 2005 for the purpose of ensuring thorough compliance and strengthening internal control. The Company established the Internal Control Committee consisting of all Directors in May 2006 and is formulating internal control as well as supervising compliance of the execution of operations with laws and regulations and the Company’s Articles of Incorporation.
With respect to the risk management system, the Internal Control Committee identifies risks in each division, evaluates such risks, and decides on measures to address them. Risks such as those associated with product quality, safety and health, the environment, and disaster prevention are respectively managed by each of the committees subordinate to the Management Meeting. Each department formulates regulations, standards, rules, etc., and manages associated risks. Also, the International Audit Dept. regularly conduct review on risk management and report details thereof to the Internal Control Committee.
Press Kogyo has set up desks both outside the Company (consulting company) and inside (Internal Audit Dept.) as Hotline (Whistleblower) System. Reports can be made online (external only) or by email, telephone, or in writing. Whistleblowers are protected by laws and company regulations to make sure they are not subject to prejudicial treatment after seeking a consultation or making a report. We are working hard to make sure all Group employees are aware of the system by regularly discussing it in the company newsletter, and by distributing cards with information that can easily be carried around and by updating posters.
Press Kogyo has established a Code of Ethics outlining the laws, social norms, etiquette, and attitude to work that all Group executives and employees should adhere to. This code is distributed in a booklet. In situations where executives or employees are unsure what to do or find it difficult to make a decision, they are to ask themselves if the action is really in line with the law and basic protocols or if it would preserve confidence in the Company if the matter was known both internally and to the public.
In FY2018, we conducted a training program aimed at preventing harassment in the workplace for all managers (assistant managers, group leaders, and foremen) at all business locations. From FY2019, we are continuing this initiative by adding this type of training to the educational curriculum for newly appointed managers.
Press Kogyo identifies factors of significant concern that could harm the reputation of the Company or hinder business continuity if they materialized. We have set these factors as important risk items to be managed Company-wide. Specific management targets are then set for every item every fiscal year, and progress is checked every six months. In this way, we intend to forecast and mitigate the potential impact of these risks.
As part of our corporate social responsibility, we formulated a business continuity plan, or BCP, (including an operational manual for central headquarters, head office functions, and the basic plan and action plan for every factory). The BCP ensures that we can recover quickly following a large-scale disaster and that we can fulfill our responsibilities to supply our customers as a parts manufacturer. Led by members of a taskforce, we provide regular training on the BCP. Immediately following a major disaster, we will set up an emergency headquarters to confirm the safety of employees and to gather information, such as the extent of damage. We also provide initial response training with the end goal of determining our policy for responses in the future.
In FY2018, we held training drills on early recovery after BCP activation at the Fujisawa Plant. This training will be rolled out successively at every factory from FY2019. Employees are not given any information in advance of the drills, which simulate actual damage, to improve the response abilities of the taskforce, especially for judging conditions and making decisions during an emergency. The effectiveness of the BCP is then evaluated and improvements are made where necessary.
We have also started earthquake-proofing our factories as one contingency of our BCP. Before this, we had already completed the seismic retrofitting of our head office and factory offices as well as service facilities, such as cafeterias and dormitories, to prioritize life and safety. In addition, we set up earthquake shelters—one of our own products—in factory buildings and use these together with an earthquake early warning system to ensure the safety of employees. We also distribute a disaster prevention handbook on cards to all employees. This booklet outlines our basic policy and actions to be taken in the event of a disaster, and how to use the safety confirmation system, so we can act swiftly when a disaster strikes.
While ICT has become widespread in recent years, there have been numerous reports of ICT accidents and other incidents. These include information leaks and viruses infecting computers used to manage equipment, such as robots, resulting in disruptions to production lines.
Based on the Press Kogyo Group Code of Ethics, which corresponds to our Information Security Basic Policy, we have positioned our information systems, including computers and networks, and the information we handle, as critically important assets of the Company. To manage and protect these assets, we have established information security regulations and strive for appropriate operations by our information system managers and employees.
Information Security System Chart
Information Security Education
Since our daily operations demand vigilance for information security, we created the Information Security Handbook and distributed it to all employees, as part of our education programs.
Going forward, we will use e-learning to improve awareness of security throughout the Group.
We run core systems and their databases in a robust data center. We set access rights for all important information to ensure that it is managed effectively.
At the same time, we make backups at a remote location, enabling swift recovery and business continuity even when access to the data center isn't possible, such as during an extraordinary disaster.