Honda 2007 Annual Report Download - page 45

43
Regional Operations
(China)
Regional Operating
Board
(China)
Regional Operations
(Asia/Oceania)
Regional Operations
(Europe, the Middle &
Near East and Africa)
Regional Operating
Board
(Asia and Oceania)
(As of June 22, 2007)
Regional Operating
Board
(Europe, the Middle &
Near East and Africa)
Regional Operations
(Latin America)
Board of Directors 20 directors
(Outside Directors 2 directors)
Board of Auditors 6 auditors
(Outside Auditors 3 auditors)
President & CEO
Regional Operating
Board
(Latin America)
Regional Operations
(North America)
Regional Sales
Operations
(Japan)
Regional Operating
Board
(North America)
Regional Operating
Board
(Japan)
Domestic Factories
Compliance Officer Risk Management Officer
Honda Engineering Co., Ltd.
Honda R&D Co., Ltd.
Corporate Auditors Office
2 staff
Audit Office 28 staff
Quality Audit & Compliance Division
Corporate Project
Business Management Operations
Business Support Operations
Purchasing Operations
Production Operations
Customer Service Operations
Power Product Operations
Automobile Operations
Motorcycle Operations
IT Division
Certification & Regulation
Compliance Division
Quality Innovation Center
Aero Engine Business
Planning Office
Aircraft Operation Office
New Business Development
and Planning Office
Corporate Planning Division
Corporate Communications Division
Honda Driving Safety Promotion Center
9 directors
Executive Council
Business Ethics Improvement
Proposal Line
Business Ethics Committee 5 officers
Management Organization of the Company’s Corporate Governance for Decision-
Making, Execution, Supervision and Others
Corporate Governance
Basic Position
Based on its fundamental corporate philosophy, the
Company is working to enhance corporate gover-
nance as one of its most important management
issues. Our aim is to have our customers and society,
as well as our shareholders and investors, place even
greater trust in us and to ensure that Honda is “a
company that society wants to exist.”
To ensure objective control of the Company’s man-
agement, outside directors and corporate auditors
are appointed to the Board of Directors and the
Board of Auditors, which are responsible for the
supervision and auditing of the Company. Honda has
also introduced an operating officer system, aimed at
strengthening both the execution of business opera-
tions at the regional and local levels and the super-
vision by the Board of Directors. The term of office of
each director is limited to one year, and the amount
of remuneration payable to them is determined
according to a standard that reflects their perfor-
mance in the Company. Our goal in doing this is to
maximize the flexibility with which our directors
respond to changes in the operating environment.
With respect to business execution, Honda has
established a system for operating its organizational
units that reflects its fundamental corporate philoso-
phy. For example, separate headquarters have been
set up for each region, business and function, and a
general manager from the Board of Directors or an
operating officer has been assigned to each head-
quarters and main division. In addition, the Executive
Council deliberates important matters concerning
management, and regional operating councils deliber-
ate important matters concerning management of
their respective regions. The result is a system that
functions effectively and efficiently, and addresses the
needs of customers and societies around the world in
a swift and appropriate manner.
With respect to internal control, each division within