Honda 2008 Annual Report Download - page 39

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Regional Operations
(China)
Regional Operating
Board
(China)
Regional Operations
(Asia / Oceania)
Regional Operating
Board
(Asia / Oceania)
Regional Operations
(Europe, the Middle &
Near East and Africa)
Regional Operating
Board
(Europe, the Middle &
Near East and Africa)
(As of June 30, 2008)
Regional Operations
(Latin America)
Board of Corporate Auditors 5 auditors
(Outside Corporate Auditors 3 auditors)
Regional Operating
Board
(Latin America)
Regional Operations
(North America)
Regional Operating
Board
(North America)
Regional Operating
Board
(Japan)
Domestic Factories
Risk Management Officer
Compliance Officer
Business Ethics Committee 6 officers
Business Ethics Improvement
Proposal Line
Honda Driving Safety Promotion Center
Corporate Planning Division
Corporate Communications Division
New Business Development and Planning Office
Aero Engine Business Office
Aircraft Operation Office
Motorcycle Quality Innovation Division
Auto Quality Innovation Division
Power Product Quality Innovation Division
Quality Assurance Division
Certification & Regulation Compliance Division
IT Division
Motorcycle Operations
Automobile Operations
Power Product Operations
Customer Service Operations
Production Operations
Purchasing Operations
Business Support Operations
Business Management Operations
Corporate Project
Quality Audit & Compliance Division
Audit Office 28 staff
Corporate Auditors Office 3 staff
Honda R&D Co., Ltd.
Honda Engineering Co., Ltd.
Regional Sales
Operations
(Japan)
Board of Directors 21 directors
(Outside Directors 2 directors)
President & CEO
9 directors
Executive Council
Based on its fundamental corporate philosophy, the Company is
working to enhance corporate governance as one of its most im-
portant 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 management,
outside directors and outside corporate auditors are appointed to
the Board of Directors and the Board of Corporate 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 operations at the
regional and local levels and the supervision by the Board of Di-
rectors. 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 performance in the Com-
pany. 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 philosophy. For example, separate head-
quarters 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 headquarters and main division.
In addition, the Executive Council deliberates important matters
concerning management, and regional operating boards deliber-
ate important matters concerning management of their respec-
tive 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 the Com-
pany is working autonomously to strengthen legal and ethical com-
pliance and risk management. The task of the Audit Office is to carry
out effective audits of the performance of each division’s business.
To enhance even further the trust and understanding of share-
holders and investors, Honda’s basic policy emphasizes the ap-
propriate disclosure of company information, such as by disclosing
financial results on a quarterly basis and timely and accurately giving
public notice of and disclosing its management strategies. Honda
will continue raising its level of transparency in the future.
Corporate Governance
0
30
60
90
120
150
180
210
240
270
0
30
60
90
120
150
180
210
240
270
Basic Position
Management Organization of the Company’s Corporate Governance for
Decision Making, Execution, Supervision and Others
Annual Report 2008 37