Corporate Governance System
Internal Audit department conducts regular internal audits of all individual departments of the Company and Group companies to verify effectiveness, legal compliance and observance of internal regulations. It reports the audit results directly to the Representative Director.
In this way, Clarion seeks to enhance its Corporate Governance System and to ensure transparent and sound management.
● Corporate Governance System
Clarion endeavors to redevelop internal controls as enhancement of corporate governance since 2006.
As the Corporate Law came into effect in fiscal 2006, we have been rebuilding internal control structure across the company and implementing management assessment every year based on “Basic Policies for Internal Control System” laid out upon resolution of Board of Directors. Since Fiscal 2007, as a member of the Hitachi Group, we are rebuilding internal control structure with respect to financial reporting which subjects all domestic and overseas Group companies and are reporting its status assessment to Hitachi, Ltd.
Since Fiscal 2008, we implemented internal control and assessment based on the Japanese Financial Instruments Exchange Act (J-SOX Act) as the Group and the reports are made to the Financial Services Agency.
There has been no case of material deficiencies discovered in annual assessments subject to disclosures with respect to internal control regulations. Through prompt corrective actions for deficiencies found during assessments, qualitative improvement of internal control system has been achieved. We continue further to improve management quality of the Group through efforts extending from internal control required by laws and regulations.
● Qualitative Improvement of Internal Control