Mitsubishi 2007 Annual Report Download - page 35

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Corporate Governance
Report and advise
Guidance
and advice
Report and
consult
Direction and
supervision
Report
and
consult
Thorough compliance
with business ethics
Report Thorough compliance
with business ethics
Consult on
ethical
issues
Thorough compliance
with business ethics
Consult on
ethical issues Various consultations
Various
consultations
Directives
for
initiatives
Compliance Promotion Structure
Board of Directors
Chairman
President
Managing Director, Corporate
General Manager
Compliance Officer
Department Manager
= Code Leader
Business Ethics Committee (Made Up of Outside Experts)
Chief Business Ethics Officer (CBEO)
CSR Promotion Office
Compliance Department
Help Line
External Attorneys
Help Line/Employee
Counseling Office
Employees of Subsidiaries and Dealers,
Temporary Employees, Former Employees
Employees with MMC Employment Agreements
Ethics Committee, which is made up of outside
experts in various fields. As part of efforts to foster
a more strongly compliance-oriented internal
mindset, this committee provides MMC with direc-
tions and advice on ethics-related matters from an
external perspective.
The Business Revitalization Monitoring Commit-
tee is another important advisory body to the Board.
Its responsibility is to monitor progress against the
aims of the Mitsubishi Motors Revitalization Plan.
Established in April 2005, this committee is com-
posed of external experts and representatives of
major shareholders.
(2) Internal Control Systems
Internal control systems are reviewed to respond to
any changes in the domestic or overseas environ-
ment. MMC aims to strengthen governance struc-
tures further and is continually working on system
improvements and upgrades to ensure compliance
with laws and regulations and to promote proper,
effective, and efficient business administration.
With regard to improving the reliability of finan-
cial reporting, the Internal Controls Promotion Com-
mittee was established in March 2006 to coordinate
efforts to plan and develop new systems that will
facilitate management’s evaluation of the effective-
ness of internal controls for financial reporting. These
evaluations are scheduled to become mandatory in
the near future. Separately, MMC also initiated
moves to strengthen corporate governance by estab-
lishing management systems for various functions
of subsidiaries and affiliates to clarify the functions
of each company.
In May 2006, in line with the statutory require-
ments of new Japanese corporate laws, the Board of
Directors approved a basic policy on the construc-
tion of internal control systems.
Compliance
• Full legal and regulatory compliance and obser-
vance of business ethics, based on internal regu-
lations such as the “Corporate Ethics Compliance
First” declaration and business ethics guidelines.
• Establishment of an internal reporting system.
Application of systems to investigate any informa-
tion received and to take necessary measures to
rectify and prevent any recurrence of identified
problems.
• Establishment of the Business Ethics Committee.
Risk management
• Specification and application of clear rules for
management 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
emergency communication and contact systems.