Corporate Governance

Outline of Corporate Governance System

Stanley has a Kansayaku System.
We pursues effectiveness of governance through the cooperation of "Audit", conducted by Kansayaku (Kansayaku Board) including more than one Outside Kansayaku keeping the independence and having professional knowledge of laws, financial accounting and others, with the "Establishment of management strategies" and "Supervision of business execution" by the Board of Directors, which conducts speedy and exact management decision concerning business operations through active discussions of Directors who are familiar with the Company Group business. By the participation of Outside Directors who keep independence and have advanced experiences and knowledge on the management, strengthening of governance function is further pursued.

• To strengthen the board of directors and make responsibility strict, we set the term of a director as one year. In addition, we have appointed a total of seven independent officers, including four external officers, making efforts to improve transparency of management.
  By establishing an executive officer system, we separate management decision-making and operational supervision functions from operation execution functions for rapid business execution.

• We adopt an auditor system, and to strengthen the management monitoring function, we invite three independent external auditors, which is a majority in the total number of five auditors.

• For internal control, we address strengthening compliance and risk management under the autonomy of individual organizations and, in addition, the Corporate Governance Promotion Office effectively audits the business execution of individual organizations.

• We establish a point of contact to accept proposals for corporate ethics improvement with the Corporate Ethics Committee so we can secure an organization where, if any illegal act or potential violation is discovered, anyone can report it.

• We have established rules about risk management, making clear the definitions of risk as well as organization and information control policies about risk management. Furthermore, we set up a risk management committee, and through risk management education of the committee and simulation to confirm the effectiveness of risk management manuals we maintain business continuity and stable development. When the Great East Japan Earthquake struck on March 11, 2011, we set up the Risk Management Committee chaired by the representative officer to respond to the crisis.