CSR Corporate Governance

For higher corporate values, Aisin AW believes it is important to build an amicable relationship with our stakeholders and provide our customers with satisfactory products.

Basic approach

In a challenging business environment brought on by rapid globalization, increasing our corporate competitiveness becomes even more imperative for long-term stable growth. Accordingly, we make every effort to improve our corporate governance by implementing various measures.

System

In order to increase our business transparency while also satisfying prompt decision making, operation-speed ups, and social responsibility, we have implemented a unique management system. Also, we have adopted Operating Officer System, a system which board of directors and executing tasks are managed by small number of people. In addition, we have created various types of committees such as the "Central Safety and Health Committee" and "Export Trade Management Committee" for monitoring our business with the perspectives of both internal and external stakeholders in mind.

Corporate Governance Structure

Corporate Governance Structure

Internal Control

As a member of the Aisin Group, Aisin AW Co., Ltd. (hereinafter, “Aisin AW”) hereby sets the basic policy below on internal control to establish a system that ensures appropriateness of businesses of Aisin AW and its subsidiaries.

Basic Policy on Establishment of an Internal Control System

1. A system that ensures that the execution of business by Directors of Aisin AW and its subsidiaries complies with laws and regulations, and the Articles of Incorporation
  • ① Based on the management principles and Charter of Corporate Code shared among the Aisin Group, Aisin AW shall establish a system to promote legal and fair corporate activities.
  • ② Aisin AW shall ensure that important management matters are determined by the Board of Directors after comprehensive deliberations by the Executive Committee of the Group or the Executive Committee of each Group company.
  • ③ Aisin AW shall establish and operate a system to comply with laws and regulations and the Group’s principles of corporate behavior in accordance with policies adopted after deliberations by the consolidated committee of corporate behavior.
  • ④ The Board of Directors shall take the initiative in realizing the spirit of the Charter of Corporate Code shared among the Group, and strive to enhance compliance awareness and ensure its spread throughout the Group.
2. A system that ensures that the execution of business by employees of Aisin AW and its subsidiaries complies with laws and regulations, and the Articles of Incorporation
  • ① Aisin AW shall ensure that compliance is thoroughly understood by its employees by providing them with guidance regarding the principles of corporate behavior deployed by the Group’s headquarters, legal training, and stratified education programs.
  • ② Aisin AW shall strive to understand problems and questions relating to compliance at an early stage and, if any, solve them through its whistle blowing system or other means.
  • ③ Aisin AW shall receive on-site audits and monitoring of its business appropriateness by internal audit functions or other bodies of the Group headquarters.
3. A system for storing and controlling information regarding the execution of business by Directors of Aisin AW and its subsidiaries
  • ○ Aisin AW shall ensure that information regarding the execution of business by Directors is appropriately stored and controlled by each responsible department based on relevant rules, laws, and regulations.
4. Rules and other systems regarding risk management on losses suffered by Aisin AW and its subsidiaries
  • ○ Aisin AW shall establish an appropriate management system for risks regarding quality, safety, compliance, information management, the environment, and fires/natural disasters, based on the promotion system, basic rules, and responsive plans determined by the Group headquarters.
5. A system that ensures that business by the Directors of Aisin AW and its subsidiaries is efficiently executed
  • ○ Aisin AW shall perform consistent policy management by setting specific policies at every level of each organization based on the Group’s management policies.
    Aisin AW shall report its business activity plans and results to the Group’s headquarters, and receive related information from the meeting bodies and functional divisions of the headquarters to ensure efficiency in businesses of Aisin AW and its subsidiaries.
6. Matters relating the effectiveness of the directions of Auditors to employees assisting them and Auditors’ independence from Directors
  • ① Aisin AW shall appoint employees who assist the business of Auditors.
  • ② Aisin AW shall obtain prior agreement of Auditors on the selected employees for the position of assisting Auditors.
7. A system for Directors and employees of Aisin AW and its subsidiaries to report to Auditors of Aisin AW and its parent companies
  • ① Directors shall report to Auditors on their main business activities performed in an appropriate manner and timing. Furthermore, Directors shall report any facts that could cause substantial damages to the Aisin Group immediately after discovering them.
  • ② Directors and employees shall report on their business activities to Auditors in response to the request of Auditors on a regular or as-needed basis.
  • ③ Aisin AW shall appropriately handle matters to ensure that persons who report as above do not receive disadvantageous treatment as a result of such reporting.
8. Other systems that ensure that Auditors perform audits effectively on Aisin AW and its subsidiaries
  • ① To enhance the effectiveness of the audits performed by Auditors, Directors shall proactively cooperate with Auditors in their auditing activities, such as attending important meetings, inspecting important documents, performing on-site audits on the plants and subsidiaries of Aisin AW, and holding meetings with financial auditors.
  • ② The internal audit function of the Group headquarters shall closely cooperate with Auditors and share information regarding audit results with them.
  • ③ Aisin AW shall bear the expenses required for Auditors to execute their business.

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