Mazda 2011 Annual Report Download - page 34

TOWARD SUSTAINED GROWTH
COLUMN
Message from an External Corporate Auditor
To All Stakeholders
Isao Akaoka
Corporate Auditor
(Chairman and President, Prefectural University of Hiroshima)
As a corporate auditor at Mazda, I have a variety of opportunities for direct contact with
directors and employees through attendance at meetings of the Board of Directors, meetings
related to operational issues, and visits to plants and subsidiaries. At the same time, I have daily
contact with Mazda’s corporate activities through my various activities as a president of a
university and as a citizen of my local community. Through this daily contact, I have seen the
hard work done by employees to innovate and make improvements for the future, and
management recognition and acknowledgement of those efforts and results when they talk to
employees. Management also make sure to fully convey the successes of those efforts to third
parties. I have great admiration for the people of Mazda and the way they have built a company
that places great importance on mutual respect. Again, in the wake of the recent catastrophic
earthquake, the entire company pulled together to do what was needed to restore operations,
and I consider this kind of effort to be the foundation of the relationship of mutual trust at
Mazda. Given this corporate culture and management stance, I hope to play a role in the
establishment of effective corporate governance by expressing my opinions with candor and no
sense of restraint.
Internal Controls
Mazda initiated a program of self-examination of internal
controls in 1998, and this is currently carried out at all
consolidated Group companies in Japan and around the world.
Departments primarily responsible for internal controls
cooperate with other related departments to provide training
and support, working to promote internal controls to ensure
that operations proceed smoothly in all departments and
consolidated group companies.
Development of Internal Controls Framework
Mazda has in place its own framework of internal controls
conforming to the COSO Report*, a global framework for
internal controls, and the implementation standards of J-SOX.
This framework helps to ensure the validity of financial reports,
the promotion of compliance, the improvement of operational
efficiency, and the maintenance of corporate assets.
* Report outlining a comprehensive framework for internal controls, released by the U.S.
organization, Committee of Sponsoring Organizations of the Treadway Commission
(COSO)
Internal Auditing Framework
The Global Auditing Department at the parent company
conducts internal audits to ensure that the Company’s
management targets, policies, and plans comply with all
applicable laws and regulations, and uphold the Company’s
sound and efficient management. In addition, in overseas
Group companies in North America, Europe, Australia, and
major operational centers in South America, the Group has
established internal auditing departments that are fully
independent from the operating departments. These depart-
ments work closely with the parent company to conduct a full
range of auditing tasks, including internal control evaluations.
Among Group companies in Japan, dedicated internal auditing
departments are established at major dealerships, where they
are chiefly engaged in the auditing of sales outlets.
These internal auditing departments are staffed with many
auditing professionals of the highest caliber, bearing
qualifications such as Certified Internal Auditor (CIA) and
Certified Information System Auditor (CISA). The Company is
also actively engaged in training the next generation of high-
quality auditors. As of March 31, 201 1, ten internal auditors
in the parent company and eight in overseas subsidiaries
hold qualifications.
32 Mazda Annual Report 201 1