Honda 2009 Annual Report Download - page 41

Corporate Governance
With respect to business execution, Honda has established a
system for operating its organizational units that reflects its funda-
mental corporate philosophy. For example, separate headquarters
have been set up for each region, business, and function, and a
member of the Board of Directors or an operating officer has been
assigned to each headquarters and main division. In addition, by
having the Executive Council and regional operating boards deliber-
ate important matters concerning management, the Company imple-
ments a system that enables swift and appropriate decision making.
With respect to internal control, compliance systems and risk
management systems have been designed and implemented ap-
propriately following the basic policies for the design of internal
controls decided by the Board of Directors.
To enhance even further the trust and understanding of share-
holders and investors, Honda’s basic policy emphasizes the appro-
priate disclosure of Company information, such as by disclosing fi-
nancial 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.
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 so-
ciety wants to exist.”
To ensure objective control of the Company’s management, out-
side 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 strength-
ening both the execution of business operations at the regional and
local levels and making management decisions quickly and appro-
priately. The term of office of each director is limited to one year, and
the amount of remuneration payable to them is determined accord-
ing to a standard that reflects their performance in the Company.
Our goal in doing this is to maximize the flexibility with which our di-
rectors respond to changes in the operating environment.
1. Basic Stance Regarding Corporate Governance
2. Company Management Organization
(As of June 23, 2009)
Board of Corporate Auditors 5 auditors
(Outside Corporate Auditors 3 auditors)
Domestic Factories
Risk Management Officer
Regional Sales
Operations
(Japan)
Regional Operations
(North America)
Regional Operations
(Latin America)
Regional Operations
(Europe, the Middle &
Near East and Africa)
Regional Operations
(Asia / Oceania)
Regional Operations
(China)
Regional Operating
Board
(Japan)
Regional Operating
Board
(North America)
Regional Operating
Board
(Latin America)
Regional Operating
Board
(Europe, the Middle &
Near East and Africa)
Regional Operating
Board
(Asia / Oceania)
Regional Operating
Board
(China)
Compliance Officer
Business Ethics Committee
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 26 staff
Corporate Auditors Office
Honda R&D Co., Ltd.
Honda Engineering Co., Ltd.
Board of Directors 21 directors
(Outside Directors 2 directors)
President & CEO
Executive Council
Annual Report 2009 39