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Corporate Governance

Corporate Governance: Fundamental Philosophy

In our management philosophy, we clearly state that "Customer Service Oriented High value-added services in compliance with clients' requirements for mutual benefit"; that "Enhanced Corporate Value by securing sufficient profit and establishing long time stable management"; that "Abide by corporate ethics and establish international business reputation"; while at the same time "Endeavor ship's safe navigation and protect global environment". We guarantee reasonable profits while implementing corporate social responsibility, and we strive to comply with laws and regulations, corporate ethics as well as safe navigation and environmental protection.

Outlines of Business Administration, Auditing System and Internal Control Systems

Outline of Business Administration

The Board of Directors meets as a rule once a month to take decisions on statutory matters as well as fundamental policies regarding business administration at the Company, and to oversee the professional duties of the board members.
In 2007, we introduced a system of executive officers to reinforce the administration of the business. The Board of Directors appoints the executive officers. They receive their authority from the representative directors in accordance with corporate policy adopted by the Board of Directors and the delegation of administrative responsibilities. They carry out the administration of the business on the basis of directives from the representative directors. With respect to business administration, the division of duties and level of authority are determined by internal regulations and the rules governing the Board of Directors. Particularly important matters are deliberated by the Executive Committee and its subordinate offices.

Outline of the Auditing System

For the Board of Auditors to audit the professional duties of company directors, the auditors attend every important meeting including the Board of Directors and the Executive Committee. They endeavor to deepen their awareness of important issues for the audits through regular meetings with representative directors. The auditors also undertake audits by perusal of documents at the end of the approval process, meetings with the Internal Audit Office, which is the independent internal auditing department, as well as corporate auditors who have concluded contract for accounting audits.
The Internal Audit Office undertakes audits of the state of performance and the business decision processes, and makes periodical reports on their findings to the company president and the auditors.

Outline of Internal Control Systems

For executives and regular employees to act in compliance with laws and regulations, the Articles of Incorporation and social norms, we aim to strengthen the compliance system, setting a code of conduct and establishing rules for compliance.
With respect to internal audits, we have set up a system whereby the Internal Audit Office undertakes audits of the appropriateness of the business administration. With respect to risk and compliance in business administration, information security and environmental risk management, we have settled on a supervising department and we have systems in place for risk management. With respect to responses to accidents at sea, which have a great impact on the business, and to disasters, we have rapid emergency response systems including precautions in place. The Executive Committee carefully deliberates matters that carry weight for the administration of the business.
With the aim of rationalizing the administration of the Group Company, we have created a system of supervisory departments and internal regulations designed for appropriate management of the Group Company.
If assistance is required in regard to the professional duties of the auditors, we are able to instruct employees working as internal auditors to undertake administrative surveys and, if the need arises, we have a system for engaging external experts.

Outline of Internal Control Systems

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