Isuzu 2006 Annual Report Download - page 19

17
Isuzu Motors Limited Annual Report 2006
In recent years, we have taken the following steps to
enhance our corporate governance:
l To strengthen local management structures, we unified
the oversight of North American and ASEAN operations in
2003, and for China in 2004.
l In December 2003, our president and representative direc-
tor certified that the contents of the first half earnings report
submitted to Japanese regulatory authorities were accurate.
l In April 2004, the Audit Group of the General Affairs and
HR Department became the Business Audit Group, an inde-
pendent structure under which we began conducting our
internal audits.
l As part of our sustainability governance program, in 1999
we began publishing an annual Environmental Report that
records the company’s environmental management perfor-
mance and progress with a range of initiatives to reduce en-
vironmental impact, reduce waste, and promote recycling.
The first English version of the Environmental Report was
published in 2000.
Isuzu is committed to disclosure of information in the in-
terests of fair business practice and corporate transparency.
We distribute information via various channels, including a
comprehensive corporate website, and provide extensive
English-language information for our shareholders and other
stakeholders around the globe.
Isuzu’s corporate governance structure incorporates a
five-member Audit Committee with two outside auditors,
a Management Committee empowered to make decisions
on critical business matters, and an executive officer system
that transfers the authority for executing strategies to the
operating level. In addition we have implemented a Vehicle
Line Executive (VLE) system. VLEs are responsible for each
of our product areas—commercial vehicles, light commer-
cial vehicles, and powertrains—and report directly to the
Management Committee.
In April 2005, Isuzu established a Compliance Committee
to provide impartial advice, oversight and assessment of
progress and organizational structures for compliance. To en-
sure fairness and transparency, the Compliance Committee
includes legal professionals from outside the company. We
also established a Compliance Management Department to
administer and promote compliance-related business activi-
ties. The department reports directly to the president and
consists of two groups—the Compliance Group responsible
for compliance planning, implementation and review, and
the Internal Audit Group. As well, we set up a helpline at a
law firm that employees could use to report compliance is-
sues in confidence. The purpose of the helpline is to obtain
information about compliance issues in the company.
In May 2005, we announced the Isuzu Basic Compliance
Initiative. Our corporate vision is “Isuzu will always mean the
best: A leader in transportation, commercial vehicles and
diesel engines, supporting our customers and respecting the
environment.” It is crucial for all Isuzu executives and em-
ployees to conduct themselves in accordance with the high-
est values so that we earn society’s trust and fulfill our vision.
1. Gaining customers’ trust by providing socially valu-
able products and services
2. Fair and sound activities, i.e., conducting our busi-
ness in the spirit of free and fair competition
3. Disclosure of corporate information to shareholders
and the public in a fair and timely manner
4. Respecting employees by providing a safe, comfort-
able working environment where they can make the
most of their abilities
5. Protecting the environment in our business activities
as well as through community work
6. Making a positive contribution to society as good
corporate citizens
7. Living in harmony with local and global communi-
ties, respecting the cultures and customs of different
countries and regions and contributing to the develop-
ment of these areas through our business
The Basic Compliance Initiative is for both internal and ex-
ternal use, designed with the goal of complete compliance,
appropriate disclosure, and public accountability.
The seven principles of the Basic Compliance Initiative are:
Isuzu aims to achieve a high level of compliance by en-
suring that all employees and executives share a common
awareness of its importance through regular education and
training, providing a consultation function when problems
cannot be resolved within the organization, and respond-
ing quickly to rectify violations to ensure they do not recur.
Isuzu’s management is strongly aware of its responsibility to
present a model of compliance to the rest of the company
at all times, as well as also taking the initiative to investigate
and resolve any violations, and exercise public accountability
by disclosing accurate information without delay.
A recent compliance issue is the Personal Information
Protection Law, which was enacted in April 2005 in Japan
following a spate of personal information leaks and mount-
ing information security problems. Keenly aware of the im-
portant responsibility as a trusted partner to protect per-
sonal information, Isuzu began working on information
security improvements and raising awareness of the issue at
an early stage, establishing a Personal Information Protection
Committee before the Law was enacted. In March 2005,
Isuzu announced its Privacy Policy for protecting personal
information, and has since published a Personal Information
Protection Law Guidebook for distribution to all Isuzu deal-
ers to raise awareness. Isuzu will continue to take a rigorous
and comprehensive approach to compliance, working from
the inside out to improve awareness and achieve the highest
standards expected of us.