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40 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
Board of
Directors
Chairman
Shareholders
meetings
Board of
Statutory
Auditors
Managing
Directors
meetings
Business Revitalization
Monitoring Committee
Business Ethics Committee
CSR Promotion Office
Subsidiaries and Affiliates
(in Japan and overseas)
Executive Vice President
(Revitalization Promotion Officer)
President
Report and advise
Report and advise
Quality Affairs Office
Each Business Unit
Audit
Guidance and advice
Quality audit
Internal audit Internal audit
MMC’s Corporate Governance Framework
(2) Internal Control Systems
Internal control systems are reviewed to respond to any
changes in the domestic or overseas environment. MMC
aims to strengthen governance structures further and is
continually working on system improvements and up-
grades to ensure compliance with laws and regulations
and to promote proper, effective, and efficient business
administration.
With regard to improving the reliability of financial
reporting, the Internal Controls Promotion Committee
was established in March 2006 to coordinate efforts to
plan and develop new systems that will facilitate
management’s evaluation of the effectiveness of inter-
nal controls for financial reporting. These evaluations
are scheduled to become mandatory in the near future.
Separately, MMC also initiated moves to strengthen cor-
porate governance by establishing management systems
for various functions of subsidiaries and affiliates to
clarify the functions of each company.
In May 2006, in line with the statutory requirements
of new Japanese corporate laws, the Board of Directors
approved a basic policy on the construction of internal
control systems.
쎱Compliance
•Full legal and regulatory compliance and observance
of business ethics, based on internal regulations such
as the “Corporate Ethics Compliance First” declara-
tion and business ethics guidelines.
•Establishment of an internal reporting system. Appli-
cation of systems to investigate any information re-
ceived and to take necessary measures to rectify and
prevent any recurrence of identified problems.
•Establishment of the Business Ethics Committee.
쎱Risk management
•Specification and application of clear rules for man-
agement reporting based on criteria set by the Board
of Directors and at managing directors meetings.
•Development of company-wide risk management
systems centered on risk management promotion
departments.
•Appointment of risk management officers in each
operational group.
•Development of emergency response capabilities to
react to unforeseen contingencies, including emer-
gency communication and contact systems.