Honda 2007 Annual Report Download - page 50

48
Corporate Governance
to ensure a systematic approach to compliance and
risk management, in accordance with the Basic
Policy concerning the Maintenance of Internal Control
Systems adopted by the Board of Directors. These
systems include the formulation of behavioral guide-
lines and procedures for self-assessment. The Com-
pany also has a system to support initiatives of each
division.
Moreover, effective audits are carried out to
monitor the execution status of each division.
Group Governance System
Behavioral Guidelines
The “Honda Conduct Guideline,” formulated to
guide the behavior of all associates, is posted on
the Company’s website (http://www.honda.co.jp/
conductguideline/ in Japanese; http://
world.honda.com/conductguideline/ in English).
In addition, each division produces more
detailed behavioral guidelines according to
its specific attributes.
Self-Assessment Checklist
Each division of the Company approaches compli-
ance and risk management in a systematic way.
For example, each division has a checklist that
clarifies specific laws and risks to consider related
to its particular business, and conducts regular
self-assessments. The results of the self-
assessments are reported to the corporate officer
in charge of each division, and the overall status
of compliance and risk management is evaluated
regularly by the Executive Council.
Compliance System
The Company has appointed a Compliance Officer,
who is a director in charge of compliance-related
initiatives. Other key elements of our compliance
system include the Business Ethics Committee and
the Business Ethics Improvement Proposal Line.
Business Ethics Committee
Honda’s Business Ethics Committee is chaired
by the Compliance Officer and consists of
directors and operating officers. The Committee
deliberates matters related to corporate ethics
and compliance.
It met two times in the year under review.
Business Ethics Improvement Proposal Line
Honda places high priority on open communica-
tions in its divisions. It has also set up the Business
Ethics Improvement Proposal Line to receive sug-
gestions related to corporate ethics issues. By
devising appropriate responses to suggestions
received, Honda is constantly working to enhance
corporate ethics. The system is designed to pro-
tect informants, who can either reveal their identity
or remain anonymous.
The Business Ethics Committee supervises the
operation of the Business Ethics Improvement
Proposal Line and submits status reports to the
Board of Auditors.
Risk Management System
Each division works to prevent and address its par-
ticular set of risks. In addition, the Honda Crisis
Response Rules are designed to address Company-
wide crises, such as major natural disasters.
The Company has appointed a Risk Management
Officer, who is a director in charge of risk manage-
ment related initiatives. It also established the
Company-wide Response Headquarters to address
crisis situations.
Retention and Management of Information on
Execution of Business by Directors
Documents and other information related to the
execution of business by directors are retained and
managed appropriately, according to the document
management policies of Honda and its major
regional subsidiaries.
Business Audits
The Audit Office is an independent supervisory
department under the direct control of the president.
This office audits the performance of each depart-
ment and works to improve the internal auditing of
subsidiaries and affiliates in each region.
Disclosure Committee
The Disclosure Committee, which consists of relevant
directors, deliberates matters related to the accuracy
and appropriateness of corporate information to be
disclosed in business results announcements and
financial reports.