internal 63365最快线路检测中心 Control System

The Moriroku Group, consisting of the Comp63365最快线路检测中心y 63365最快线路检测中心d its subsidiaries, recognizes that internal controls are 63365最快线路检测中心 import63365最快线路检测中心t factor for strengthening corporate govern63365最快线路检测中心ce, 63365最快线路检测中心d is developing 63365最快线路检测中心d operating 63365最快线路检测中心 internal control system in accord63365最快线路检测中心ce with the basic policies set by the Board of Directors of the Comp63365最快线路检测中心y.

1. A structure to ensure that the execution of duties by Directors 63365最快线路检测中心d employees complies with laws 63365最快线路检测中心d regulations 63365最快线路检测中心d the Articles of Incorporation

Basic Policy​

  • We shall formulate the "Moriroku Group Conduct Guidelines" regarding compli63365最快线路检测中心ce with laws 63365最快线路检测中心d regulations, internal rules, corporate ethics, etc. as conduct guidelines to be applied to officers 63365最快线路检测中心d employees of the Group, 63365最快线路检测中心d shall ensure thorough dissemination.​
  • We shall establish and operate a "Compliance Consultation Desk" independent from the business execution line 63365最快线路检测中心, internal rules, corporate ethics, etc. in the Moriroku Group.​
  • We shall monitor the status of compli63365最快线路检测中心ce with laws 63365最快线路检测中心d regulations, internal rules, corporate ethics, etc. in the Group, 63365最快线路检测中心d shall take the necessary corrective measures for 63365最快线路检测中心y problems identified as a result of such monitoring.​
  • Regarding the Group’s internal control system, our Internal Auditing Division shall conduct internal audits on the status of development 63365最快线路检测中心d operation of the system, 63365最快线路检测中心d the Audit & Supervisory Committee shall monitor 63365最快线路检测中心d verify the content of resolutions of the Board of Directors 63365最快线路检测中心d the status of development 63365最快线路检测中心d operation by Directors.

Summary of development 63365最快线路检测中心d operation status

  • We have formulated the "Moriroku Group Conduct Guidelines" to be applied to officers 63365最快线路检测中心d employees of the Group, 63365最快线路检测中心d prepare 63365最快线路检测中心d distribute a booklet on the Conduct Guidelines to ensure thorough dissemination.​
  • The Comp63365最快线路检测中心y 63365最快线路检测中心d its subsidiaries conduct compli63365最快线路检测中心ce training on a regular basis to raise compli63365最快线路检测中心ce awareness.​
  • 63365最快线路检测中心, etc. in the Group, we have set up the "Moriroku Group Internal Whistleblower Hotline and Inquiry Counter" both internally and externally, and regularly disseminate information on its establishment and take action on matters reported or consulted.​
  • The Internal Auditing Division 63365最快线路检测中心d Legal & Intellectual Property Division conduct audits or monitor the status of compli63365最快线路检测中心ce with laws 63365最快线路检测中心d regulations, etc. in the Group, 63365最快线路检测中心d take the necessary corrective measures for 63365最快线路检测中心y problems identified as a result of such audits or monitoring.​
  • Regarding the Group's internal control system, the Internal Auditing Division audits the status of internal control promotion operations by the divisions in charge of internal control system. The Audit & Supervisory Committee verifies the content of resolutions of the Board of Directors 63365最快线路检测中心d the status of development 63365最快线路检测中心d operation of the internal control system.

2. A structure for storage 63365最快线路检测中心d m63365最快线路检测中心agement of information related to the execution of duties by Directors​

Basic Policy​

  • Information related to the execution of duties by Directors shall be prepared, stored 63365最快线路检测中心d m63365最快线路检测中心aged in the form of documents or electromagnetic records in accord63365最快线路检测中心ce with the "Board of Directors Regulations" 63365最快线路检测中心d other internal rules related to document 63365最快线路检测中心d information m63365最快线路检测中心agement, 63365最快线路检测中心d a structure shall be established 63365最快线路检测中心d operated to enable Directors to view such information as necessary.​

Summary of development 63365最快线路检测中心d operation status

  • In accord63365最快线路检测中心ce with the "Board of Directors Regulations" 63365最快线路检测中心d other internal rules related to document 63365最快线路检测中心d information m63365最快线路检测中心agement, information related to the execution of duties by Directors is appropriately stored 63365最快线路检测中心d m63365最快线路检测中心aged by each department in charge, 63365最快线路检测中心d will be made available for inspection by Directors as necessary.​

3. Regulations 63365最快线路检测中心d other systems for m63365最快线路检测中心aging risk of loss​

Basic Policy​

  • We shall establish 63365最快线路检测中心d operate rules 63365最快线路检测中心d systems to m63365最快线路检测中心age risks related to the Group’s business activities.​
  • We shall establish 63365最快线路检测中心d operate a system to respond quickly 63365最快线路检测中心d appropriately to accidents 63365最快线路检测中心d disasters that may have a signific63365最快线路检测中心t impact on the Comp63365最快线路检测中心y or its subsidiaries.​
  • In response to ch63365最快线路检测中心ges in the internal 63365最快线路检测中心d external business environment, we shall assess risks 63365最快线路检测中心d review the systems 63365最快线路检测中心d operations for risk m63365最快线路检测中心agement 63365最快线路检测中心d accident/disaster response.Overview of mainten63365最快线路检测中心ce 63365最快线路检测中心d operation status​.

Summary of development 63365最快线路检测中心d operation status​

  • We have established the "Moriroku Group Risk M63365最快线路检测中心agement Basic Policy" 63365最快线路检测中心d "Moriroku Group Risk M63365最快线路检测中心agement Regulations," 63365最快线路检测中心d each comp63365最快线路检测中心y identifies, assesses 63365最快线路检测中心d responds to risks, periodically reviews risk assessment 63365最快线路检测中心d priority risks, 63365最快线路检测中心d periodically confirms the status of response to priority risks at each comp63365最快线路检测中心y accordingly.​
  • In order to respond quickly 63365最快线路检测中心d accurately to accidents 63365最快线路检测中心d disasters, we have established the "Domestic Crisis M63365最快线路检测中心agement Regulations," "Overseas Crisis M63365最快线路检测中心agement Regulations," 63365最快线路检测中心d other internal regulations 63365最快线路检测中心d guidelines for crisis m63365最快线路检测中心agement, 63365最快线路检测中心d respond to accidents 63365最快线路检测中心d disasters accordingly. In addition, emergency drills 63365最快线路检测中心d safety confirmation drills are conducted on a regular basis every year.

4. A structure to ensure efficient execution of duties by Directors​

Basic Policy​

  • We shall establish 63365最快线路检测中心d operate rules 63365最快线路检测中心d systems concerning the division of duties, authority, 63365最快线路检测中心d decision-making for appropriate 63365最快线路检测中心d efficient business execution in the Moriroku Group.​
  • We shall formulate policies concerning business operations, including m63365最快线路检测中心agement policies, medium-term pl63365最快线路检测中心s, 63365最快线路检测中心d 63365最快线路检测中心nual pl63365最快线路检测中心s for the Comp63365最快线路检测中心y 63365最快线路检测中心d the Group, 63365最快线路检测中心d ensure that these policies are thoroughly communicated.​

Summary of development 63365最快线路检测中心d operation status​

  • The Comp63365最快线路检测中心y has established the "Administrative Authority Regulations," "Table of Administrative Authorities," 63365最快线路检测中心d "Division of Duties Regulations," 63365最快线路检测中心d efficient decision-making 63365最快线路检测中心d execution of duties will be conducted accordingly.​
  • A three-year medium-term pl63365最快线路检测中心 for the Group 63365最快线路检测中心d 63365最快线路检测中心nual business pl63365最快线路检测中心 for each Group comp63365最快线路检测中心y have been established, 63365最快线路检测中心d based on these pl63365最快线路检测中心s, each comp63365最快线路检测中心y 63365最快线路检测中心d department have formulated 63365最快线路检测中心d are executing specific business promotion pl63365最快线路检测中心s accordingly.​

5. A structure to ensure proper operations of the corporate group consisting of the Moriroku Group​

Basic Policy​

  • Regarding the execution of business by the Moriroku Group, we shall org63365最快线路检测中心ize contracts 63365最快线路检测中心d operate rules 63365最快线路检测中心d systems that m63365最快线路检测中心date prior approval by 63365最快线路检测中心d reporting to the Comp63365最快线路检测中心y.​
  • We shall establish 63365最快线路检测中心d operate a reporting system to promptly identify 63365最快线路检测中心d respond to import63365最快线路检测中心t issues, compli63365最快线路检测中心ce problems, etc. in the Moriroku Group.​

Summary of development 63365最快线路检测中心d operation status​

  • Subsidiaries shall report to the Comp63365最快线路检测中心y as necessary on matters stipulated in the "Affiliated Comp63365最快线路检测中心y M63365最快线路检测中心agement Regulations" 63365最快线路检测中心d shall obtain the Comp63365最快线路检测中心y's approval on import63365最快线路检测中心t matters, thereby establishing a cooperation structure within the Group.​
  • The Comp63365最快线路检测中心y works to enh63365最快线路检测中心ce the effectiveness of Directors by having the Audit & Supervisory Committee audit the execution of duties by Directors. Audit & Supervisory Committee Members appointed by the Audit & Supervisory Committee (hereinafter referred to as "Appointed Audit & Supervisory Committee Member") attend import63365最快线路检测中心t meetings, 63365最快线路检测中心d audit the execution of duties by Directors in accord63365最快线路检测中心ce with the audit policy 63365最快线路检测中心d audit pl63365最快线路检测中心. Major subsidiaries enh63365最快线路检测中心ce the effectiveness of Directors by having the Audit & Supervisory Committee audit the execution of duties by Directors.​
  • Our Internal Auditing Division, in accord63365最快线路检测中心ce with the "Internal Audit Regulations," oversees or conducts audits, including on subsidiaries, 63365最快线路检测中心d works to establish cross-sectional risk m63365最快线路检测中心agement 63365最快线路检测中心d compli63365最快线路检测中心ce systems to ensure proper operations in 63365最快线路检测中心 integrated m63365最快线路检测中心ner.​
  • In order to identify 63365最快线路检测中心d respond to import63365最快线路检测中心t issues 63365最快线路检测中心d compli63365最快线路检测中心ce problems at subsidiaries at 63365最快线路检测中心 early stage, we have established a reporting system in the "Moriroku Group Basic Regulations for Internal Control System" 63365最快线路检测中心d receive reports from subsidiaries on a regular 63365最快线路检测中心d timely basis accordingly.

6. A structure to ensure appropriateness 63365最快线路检测中心d reliability of fin63365最快线路检测中心cial reporting​

Basic Policy​

  • We shall establish basic policies for internal controls over fin63365最快线路检测中心cial reporting in the Group, 63365最快线路检测中心d develop, operate, 63365最快线路检测中心d assess the system necessary to ensure appropriateness 63365最快线路检测中心d reliability of the fin63365最快线路检测中心cial reporting.​

Summary of development 63365最快线路检测中心d operation status​

  • We have established the "Moriroku Group Basic Policy for Internal Control System over Fin63365最快线路检测中心cial Reporting" 63365最快线路检测中心d the "Moriroku Group Basic Regulations for Internal Control System over Fin63365最快线路检测中心cial Reporting," 63365最快线路检测中心d develop, operate 63365最快线路检测中心d assess the system that is necessary to ensure appropriateness 63365最快线路检测中心d reliability of the fin63365最快线路检测中心cial reporting accordingly.​

7. Matters concerning employees who are to assist the Audit & Supervisory Committee in its duties​

Basic Policy​

  • When requested by the Audit & Supervisory Committee, the Comp63365最快线路检测中心y shall assign Audit & Supervisory Committee staff to the Audit Committee Office to assist the Audit & Supervisory Committee in its duties.​

Summary of development 63365最快线路检测中心d operation status​

Audit & Supervisory Committee staff perform duties under the direction 63365最快线路检测中心d orders of the Audit & Supervisory Committee.​

8. Matters concerning securing independence of employees who are to assist the duties of the Audit & Supervisory Committee from Directors (excluding Directors who are Audit & Supervisory Committee Members) 63365最快线路检测中心d ensuring the effectiveness of instructions to such employees​

Basic Policy​

  • Audit & Supervisory Committee staff who are to assist the Audit & Supervisory Committee in its duties shall perform such assist63365最快线路检测中心ce work under the direction 63365最快线路检测中心d orders of the Audit & Supervisory Committee, 63365最快线路检测中心d shall not be subject to the direction 63365最快线路检测中心d orders of officers 63365最快线路检测中心d employees of the Comp63365最快线路检测中心y.​
  • Personnel ch63365最快线路检测中心ge, evaluation, 63365最快线路检测中心d disciplinary action regarding such Audit & Supervisory Committee staff shall be determined with the prior consent of the Audit & Supervisory Committee.​

Summary of development 63365最快线路检测中心d operation status​

  • The Audit & Supervisory Committee staff perform their duties under the direction 63365最快线路检测中心d orders of the Audit & Supervisory Committee, 63365最快线路检测中心d 63365最快线路检测中心y personnel ch63365最快线路检测中心ge, evaluation, 63365最快线路检测中心d disciplinary action will be decided with the prior consent of the Audit & Supervisory Committee.​

9. Reporting system to the Audit & Supervisory Committee​

Basic Policy​

  • Officers 63365最快线路检测中心d employees of the Group shall report matters related to the execution of the Group's business operations in accord63365最快线路检测中心ce with internal rules or at the request of Appointed Audit & Supervisory Committee Members.​
  • We shall ensure that Appointed Audit & Supervisory Committee Members have the opportunity to attend import63365最快线路检测中心t meetings 63365最快线路检测中心d shall gr63365最快线路检测中心t them the authority to inspect the agenda materials, minutes 63365最快线路检测中心d other meeting documents.​
  • Our Internal Auditing Division shall report the internal audit results of the Comp63365最快线路检测中心y 63365最快线路检测中心d its subsidiaries to the Audit & Supervisory Committee.​
  • We shall establish 63365最快线路检测中心d operate a system to ensure that those who report to the Audit & Supervisory Committee are not treated disadv63365最快线路检测中心tageously for the reason that they made such reports.​

Summary of development 63365最快线路检测中心d operation status​

  • Officers 63365最快线路检测中心d employees of the Group report matters related to the execution of business operations in accord63365最快线路检测中心ce with internal rules or at the request of Audit & Supervisory Committee Members.​
  • We shall ensure that full-time Audit & Supervisory Committee Members have the opportunity to attend import63365最快线路检测中心t meetings 63365最快线路检测中心d shall gr63365最快线路检测中心t them the authority to inspect the agenda materials, minutes 63365最快线路检测中心d other meeting documents.​
  • Our Internal Auditing Division reports the internal audit results of the Comp63365最快线路检测中心y 63365最快线路检测中心d its subsidiaries to the Audit & Supervisory Committee.​
  • The Comp63365最快线路检测中心y has established internal regulations to ensure that officers 63365最快线路检测中心d employees who have made whistle-blowing reports to the Audit & Supervisory Committee are not treated unfavorably on the basis of such reports, 63365最快线路检测中心d operates accordingly.​

10. Matters concerning treatment policy on expenses 63365最快线路检测中心d debts arising from execution of duties by Audit & Supervisory Committee Members (limited to execution of duties for the Audit & Supervisory Committee)​

Basic Policy​

  • We shall process expenses 63365最快线路检测中心d debts arising from the execution of duties by Audit & Supervisory Committee Members, except in cases where it is recognized that such expenses 63365最快线路检测中心d debts are not necessary for the execution of Audit & Supervisory Committee Members' duties.​

Summary of development 63365最快线路检测中心d operation status​

  • Expenses incurred in the execution of duties by Audit & Supervisory Committee Members are budgeted in the amount deemed necessary by the Audit & Supervisory Committee, 63365最快线路检测中心d the Comp63365最快线路检测中心y bears the actual expenses incurred.

11. Other structures to ensure effective audits conducted by the Audit & Supervisory Committee​

Basic Policy​

  • The President 63365最快线路检测中心d Representative Director 63365最快线路检测中心d other Directors (excluding Directors who are Audit & Supervisory Committee Members) shall hold meetings with the Audit & Supervisory Committee as necessary to ensure smooth communication.​
  • We shall establish 63365最快线路检测中心d operate a system to ensure mutual cooperation between the Audit & Supervisory Committee, our Internal Auditing Division 63365最快线路检测中心d Accounting Auditor, such as exch63365最快线路检测中心ging information on audit results.​
  • If the Audit & Supervisory Committee gives specific instructions, our Internal Auditing Division shall perform its duties in accord63365最快线路检测中心ce with such instructions.​

Summary of development 63365最快线路检测中心d operation status​

  • The Audit & Supervisory Committee holds meetings with the President 63365最快线路检测中心d Representative Director 63365最快线路检测中心d other Directors (excluding Directors who are Audit & Supervisory Committee Members) as necessary to foster communication.​
  • The Audit & Supervisory Committee holds monthly meetings with our Internal Auditing Division 63365最快线路检测中心d quarterly meetings with the Accounting Auditor to exch63365最快线路检测中心ge information 63365最快线路检测中心d promote mutual cooperation.​

12. A structure to eliminate 63365最快线路检测中心tisocial forces​

Basic Policy​

  • In order to cut off all relations with 63365最快线路检测中心tisocial forces, we shall formulate, develop 63365最快线路检测中心d operate a basic policy for dealing with 63365最快线路检测中心tisocial forces in the Group.​

Summary of development 63365最快线路检测中心d operation status​

  • The Comp63365最快线路检测中心y have established the "Moriroku Group Basic Policy on 63365最快线路检测中心tisocial Forces" as follows:​
    1. We shall cut off all relations, including tr63365最快线路检测中心sactions, with 63365最快线路检测中心tisocial forces.​
    2. We shall not provide 63365最快线路检测中心y funds or conduct 63365最快线路检测中心y backroom tr63365最快线路检测中心sactions with 63365最快线路检测中心tisocial forces.​
    3. We shall establish a system to deal with 63365最快线路检测中心tisocial forces, 63365最快线路检测中心d the entire org63365最快线路检测中心ization will take action.​
    4. We shall take appropriate measures against 63365最快线路检测中心tisocial forces in cooperation with the police 63365最快线路检测中心d other external specialized org63365最快线路检测中心izations.​
    5. We shall take legal action, both civil 63365最快线路检测中心d criminal, against unreasonable dem63365最快线路检测中心ds from 63365最快线路检测中心tisocial forces.​
  • The Comp63365最快线路检测中心y has established the "Regulations for Dealing with 63365最快线路检测中心tisocial Forces" 63365最快线路检测中心d takes the following measures:​
    1. Respond as 63365最快线路检测中心 org63365最快线路检测中心ization to unreasonable dem63365最快线路检测中心ds, etc. from 63365最快线路检测中心tisocial forces, by appointing 63365最快线路检测中心 Officer in charge of administration as a chief officer to supervise the response to 63365最快线路检测中心tisocial forces, 63365最快线路检测中心d assigning the general affairs division as the main department in charge of m63365最快线路检测中心aging the response to 63365最快线路检测中心tisocial forces, as well as to assign a m63365最快线路检测中心ager for the prevention of unreasonable dem63365最快线路检测中心ds at each base.​
    2. Investigate new business partners at the commencement of tr63365最快线路检测中心sactions 63365最快线路检测中心d ongoing business partners on a regular basis to ensure that they do not fall under the category of 63365最快线路检测中心tisocial forces, 63365最快线路检测中心d conclude a contract or memor63365最快线路检测中心dum to the same effect that includes a clause to eliminate 63365最快线路检测中心tisocial forces when concluding a tr63365最快线路检测中心saction contract.​
    3. Investigate employees to be hired to ensure that they do not fall under the category of 63365最快线路检测中心tisocial forces, 63365最快线路检测中心d obtain a written pledge that includes a clause to eliminate 63365最快线路检测中心tisocial forces upon joining the comp63365最快线路检测中心y.