Pentax 2008 Annual Report Download - page 36

(People) (%)
Number of Shareholders and Shareholding Ratio
Number of shareholders
(As of March 31)
Individual shareholding ratio
Foreign shareholding ratio
80,000
60,000
40,000
20,000
0
60
45
30
15
0
2008 2006 20072002 2003 2004 2005
administrative processes for each division and business office from
an independent standpoint. It conducts operational audits, checks
that internal control systems are functioning as they should,
ensures that there is no dishonesty, and checks for possible areas
for improvement. Problem areas that come to light as a result of
audit procedures become the subject of a recommendation for
improvement. Particularly important matters are reported to the
Audit Committee and the Board of Directors, as well as to the
executive officers. The executive officers decide upon and issue
directives for speedy, appropriate responses.
To achieve the best results from internal control systems, it is
essential that all employees performing duties for an organization
work to foster greater awareness. The Hoya Group has established
a set of Business Conduct Guidelines that clarify the guiding
principles under which each employee should perform his or her
duties, with resolute adherence to work ethics, and Hoya is
engaged in a wide range of employee education activities.
Another initiative, the Hoya Help Line (HHL), was established
in 2003 as an internal reporting and
consultative system. If there is an act that
contravenes the law or the Hoya Business
Conduct Guidelines, the Hoya Help Line
ensures that the Company can discover
the contravention and that a report will quickly reach top
management, enabling timely and appropriate action to be taken
on the issue. This structure helps to preserve the integrity of the
Hoya Group as a whole. The Hoya Help Line is a dedicated system
located within the Company’s headquarters for internal use, and it
can also be used as a point of contact with external lawyers who
are available to listen to employees. This separation preserves
anonymity and works to maintain the system’s functional
effectiveness. As at the end of March 2008, the system had been
introduced at Group companies in Japan, North America (the
United States and Canada), Thailand and Europe. The intention is
to continue to expand the number of countries covered, giving
the Hoya Help Line worldwide coverage.
Under the guidance of the Internal Controls Group, Hoya is
responding to Internal Control Reporting System requirements
(Japan’s version of the Sarbanes-Oxley Act*) by building a
structure to elucidate the Hoya Group’s state of preparedness in
relation to its internal controls over financial reporting, as well as
advancing development on operational and assessment systems
for internal controls. Starting in April 2008, the effectiveness of
internal control systems is being inspected and verified in stages,
and improvements are being instituted where necessary.
Hoya believes that fair and prompt disclosure of information and
other investor relations activities are a fundamental duty of
management. The Company respects the rights of each of its
shareholders concerning appropriate disclosure of information.
The Company also values communication with shareholders, and
it continues to clearly reflect their views in its management
practices.
In 1998, Hoya began the disclosure of quarterly financial
statements ahead of many other Japanese firms, and has sought
to shorten the period between the account settlement at the end
of each quarter and the disclosure. The volume of information in
the quarterly reports is also the same as that contained in the
year-end financial reports. The Company continues to strive to
increase the speed of disclosure and broaden the content.
Moreover, top management actively participates in investor
relations activities. For example, the CEO attends investor
meetings that are held each quarter to discuss quarterly financial
reports, where he explains strategy and fields questions, and he
also visits overseas institutional investors.
Furthermore, to enrich interaction with individual
shareholders and investors, Hoya has held seminars across Japan
for individual investors since 2006. The seminars were also
well-attended by shareholders and investors in the fiscal year
under review, offering a chance for the attendees to learn more
about Hoya and also providing the Company with valuable
feedback. To meet the expectations of its shareholders, Hoya
strives to further improve its investor relations activities, aiming to
achieve even higher levels of corporate transparency.
*
Internal Control Reporting System requirements fall under Japan’s Financial Instruments and
Exchange Law, which was promulgated in June 2006 and came into effect and applies to fiscal
periods beginning in or after April 2008. Covering publicly listed companies, it seeks to strengthen
internal controls through assessments of internal controls relating to financial reporting by
management, and audits by certified public accountants. The law is designed to boost overall
reliability and trust in corporate disclosure.
Corporate
Governance
Full Disclosure and Investor Relations
Activities
34