Material Issue 5:Build a Solid Base that Underpins Trust

Basic Approach and Policy

Strengthening corporate governance involves more than just preventing corruption and avoiding corporate risk; it can also support the enhancement of corporate profitability and medium- and long-term corporate value, as well as providing a basis for sustainable growth. For a company to be able to enjoy continued sustainable growth, the firm needs to remain committed to using dialogue to identify the concerns and expectations of local communities and build a “virtuous circle” of interrelatedness.
The Toyo Ink Group has been working to strengthen its corporate governance framework, focusing on timely decision-making, clear delineation of responsibility, the establishment of sound, transparent management systems, strengthening of the role played by external directors, improvement of the internal controls system, etc.
In addition, by working to solve the problems experienced by local communities through dialogues and implementing community contribution activities, the Toyo Ink Group is contributing to the realization of a sustainable society; at the same time, through these measures and through proactive relevant information disclosure, the Group is aiming to earn society's trust and enhance the Group's corporate value.

Objectives and Targets of SDGs that are Relevant to the Actions on the Material Issue

Actions Objectives and Targets of Relevant SDGs
Ensure compliance

10.3 We will promote measures to ensure compliance and act appropriately by observing laws and regulations.

16.5 We will not be involved in corruption or bribery in any country.

Eliminate corruption
Promote effective risk management and disaster preparedness
Implement timely, appropriate and proactive information disclosure, and strengthen stakeholder communication
Contribute to local community development through our business activities
Contribute to the resolution of problems affecting local communities

Promotion System

Toyo Ink SC Holdings Co., Ltd. as the holding company plays the central role in governance. It develops Group strategies and performs tasks for risk management and accountability.
We work continuously to enhance our corporate governance based on basic policies so as to realize the sustainable growth of the Group and improve its medium- and long-term corporate value. At the same time, we have outlined our vision of the ideal corporate governance framework in the Group's CSR Action Guidelines. Through the activities of the CSR Generalization Committee's subcommittees, we have been implementing various compliance and risk management measures.

Corporate Governance System (FY2020)
Figure: General Shareholders' Meeting / Holding company / Board of Directors / Internal directors / External directors / Board of Auditors / Internal auditors / External auditors / Accounting Auditors / Group Management Committee / Consultative body for important management matters and legal matters required to be submitted to the Board of Directors, subordinate to the Board of Directors / Internal Audit Department / Department responsible for examining and auditing business activities to ensure they are legal and legitimate / Representative Directors / CSR Generalization Committee / CSR Promotion Coordination Meeting / Operating Officers / Compliance Committee / Risk Management Committee / Environment and Safety Committee / Compliance Office (Contact Point for Ext. Parties) / Outside Counsel / Advisory committee on appointment and remuneration / To further improve the transparency and objectiveness of the process of determining the appointment and remuneration of directors and the resultant contents, we set up an advisory committee in 2017. The committee deliberates on candidates for directors and on remuneration for directors before they are proposed at the Annual General Meeting of Shareholders. / Two outside directors, who conform to the Standards Concerning the Independence of Outside Directors that we have stipulated, participate in the abovementioned advisory committee. / Group Companies / Appointment / Dismissal / Finding / Reporting / Inquiring / Audit / Supervision / Proposals / Cooperation / Selection / Control / Management
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