To fulfill its social responsibilities to all stakeholders, SEKISUI KASEI Group aims to effectively implement corporate governance, ensure management transparency, and establish a management system that can promptly respond to changes in the business environment.

• Basic Policy on Internal Control Systems (November 1, 2023)[261KB]
• Basic Policy on Corporate Governance (October 1, 2023) [287KB]
• Corporate Governance Report (June 24, 2024) [253KB]
• Criteria for the Appointment and Independence of Outside Directors (December 10, 2015) [129KB]
• Policy on Determining the Content of Individual Directors' Compensation (March 16, 2022) [115KB]
• Policy on Constructive Dialogue with Shareholders (April 1, 2023)[88KB]

Features of the Corporate Governance System

SEKISUI KASEI conducts business execution, supervision, and auditing through a governance structure composed of the following bodies:

Board of Directors: Out of the eight directors, three are outside directors who provide an objective perspective on management oversight and ensure the appropriateness and transparency of decision-making in the Board of Directors. Important matters are thoroughly deliberated and decided by the Board.

Effectiveness Evaluation: To analyze and evaluate the overall effectiveness of the Board of Directors, all directors and auditors participate in an annual survey created with advice from an external third-party organization. Based on the results, we formulate action plans to enhance the Board's effectiveness.

Term and Executive Officer System: To clarify the management responsibilities of directors, their term is set to one year. Additionally, we have introduced an executive officer system to establish a management structure that can quickly respond to changes in the business environment.

Furthermore, under the Executive Committee, we have established the Sustainability Committee and the Compliance and Risk Management Committee. These committees complement the business headquarters system, aim for speedy and rational decision-making, and play a role in mutual checks and balances.

Our outside directors, with their extensive experience and high level of insight, fulfill supervisory and advisory functions across the company's overall management.

For information dissemination to outside directors, the Secretariat of the Board of Directors distributes materials in advance and provides explanations on matters to be deliberated by the Board. For particularly important proposals, sufficient explanations are given by internal directors.

Corporate Governance System (As of June 21, 2024)

Audit System

The Company has adopted an audit & supervisory board system, where directors and auditors oversee and supervise business execution. Out of the four auditors, two are external auditors. By establishing a system for timely and appropriate reporting of important matters to the auditors or the audit & supervisory board, we strengthen the auditing function and ensure the rationality, transparency, and fairness of management decisions.

Furthermore, based on the "Basic Policy on Internal Control Systems," we strive to enhance the monitoring and supervisory functions of management through various measures. These include establishing an internal control system, conducting audits on the operation status of internal audits and internal control systems by the Audit Office, and ensuring collaboration between the Audit Office, auditors, and accounting auditors.