Governance

Strengthening Corporate Governance

Board of Auditors

We appoint two auditors (one full-time, one part-time (lawyer)). They participate in the monthly Board of Directors meetings and conduct auditing of execution by directors. They also inspect relevant books and audit business sites from an auditor’s standpoint.

Board of Directors

The board consists of four directors (one part-time), and is chaired by the Representative Director and President. The board makes decisions on important matters for group management, and also audits execution of operations by each director.

Management Meetings

The core of the meetings is directors and executive officers, and if necessary, the persons responsible for each department are asked to attend. Time is spent carefully debating all important matters for management, and then a final decision is made at the Board of Directors.

Nomination and Compensation Committee

We have established a Nomination and Compensation Committee as a voluntary committee. This committee consists of one part-time director and two auditors. It discusses appointments and compensation at the expiration of terms of office of directors in each period, and presents its conclusions to the Board of Directors.

Director Evaluation System

In order to discuss compensation for directors in each period, the Nomination and Compensation Committee carries out director evaluations in accordance with preestablished evaluation criteria. The specifics and compensation evaluated and calculated here are presented to the Board of Directors. The Board checks their objectivity and validity, and then the compensation of all directors is decided.

Board of Directors Evaluation System

Every period, all directors and auditors conduct a Board of Directors evaluation consisting of 16 criteria, and personally check whether the Board of Directors is operating properly. If there are items with a low evaluation score, it is the duty of the Representative Director and President, acting as the chair, to work toward improvement.

Total Commitment To Compliance

In the Murakami Group corporate ethics and compliance are treated as an important issue. In order to practice corporate management that fulfills our social responsibility, we have established and disseminated Murakami Group Ethical Conduct Rules indicating specific conduct guidelines for executives and employees.

Thorough Implementation of Risk Management

We have developed a BCP Crisis Management Manual and determined our responses to various disaster scenarios. We have prepared a response manual for scenarios such as an earthquake that directly hits Tokyo area, Nankai Trough offshore earthquake, eruption of Mt. Fuji, or pandemic, and we are striving for an organization capable of ensuring employee safety and quickly resuming business. We are also working to decentralize our production plants, and strengthen our production system so that the supply of products to customers is not delayed.

Strengthening Information Security

In order to protect the confidential information of customers and business partners, management and technical information of the company, and all other types of information, we are strengthening security measures to deal with threats like ransomware, and contingency measures such as bolstering system redundancy, and working to maintain and improve proper information management and information security.