Tachi-S(en): Corporate Governance and Compliance

2009 2008 2007 2006 2005 2004

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Corporate Governance and Compliance

Corporate Governance

To respond to the wishes of all its stakeholders, Tachi-S endeavours to maximize corporate value aimed at enhancing the transparency and efficiency of our operations while fulfilling its corporate social responsibility through environmental activity and social contribution.

Business Execution System
The board of directors meets at least once a month to supervise business execution while making decisions on important operational matters, as well as matters determined by law, ordinances, and company statutes. Tachi-S has also incorporated our business execution system, and the executive officer committee members make decisions, deliberate, and report on important issues excluding those decided by resolutions of the board of directors.

Auditors System
Each Auditor is present at important internal meetings, and carries out audits of the business plan set by company Directors and Executive Officers through such means as hearings and surveys of each division. The Auditors also monitor the business plans and finances of our subsidiaries.
The effectiveness of the auditing process is enhanced through the establishment of third-party conferences with Auditors, Independent Auditors, Executive Officers in the Management Control Division, and the Management Audit Office. At these meetings, opinions are exchanged freely.

Compliance

To continue receiving the trust of society that it has already earned, the Company aims to impress upon all employees the need for complete compliance in corporate activities, based on observance of laws and ordinances and rooted in corporate ethics and philosophy.

Promotion of Compliance
In order to maintain the trust of society as a good corporate citizen, we deem it essential to take initiatives so that each employee is familiar with compliance and able to incorporate it in their daily activities. In order to achieve this, in 2004 we assembled a summary of Tachi-S ethics and rules of the internal reporting system in a compact handbook, and in 2007 we assembled a collection of specific examples of practices that are not permitted under the ethical rules. We distributed this collection to all employees to apply in practice.
We also established Ethics and Compliance Committees as organizations for managing compliance appropriately, and further established compliance officers responsible for workplace ethics in each office.

The Internal Reporting System
Tachi-S is also establishing an internal reporting suggestion box (the "e-box") at key offices while establishing an "ethics hotline" as a point of contact for discussion and reports relating to matters such as irregularities, illegal activities, and/or unethical behavior. This point of contact is set up at the Auditors, Management Audit Office, and external lawyer offices, laying the ground work for user-friendly reporting and discussion.