Suzuki 2003 Annual Report Download - page 17

SUZUKI MOTOR CORPORATION
sales of our key models.
In overseas markets, first of all, in our marketing and product development, we will make efforts to conduct them
in close adherence to the conditions of each market. At the same time we will make efforts to upgrade our
overseas plants, through promoting the local procurement of parts as well as through reducing costs and
upgrading the quality of the parts that already are made locally or in-house.
Furthermore, we hope to maximize the business potential of the synergy gained by our strategic alliances with
Fuji Heavy Industry Ltd., and each company in the General Motors Corporation group to reinforce the corporate
foundation.
Efforts will be taken to develop, in a speedy and effective manner, products that closely suit each of the four
central markets in the world, and to introduce them in a timely fashion.
We are also continuing to advance with our environmentally friendly technology. Studies aimed at improving a
wide number of global issues are being conducted in the areas of gas emissions, improvement of fuel
consumption, reducing the amount of resources consumed, recycling, etc. Development programs on
advanced next-generation vehicles such as hybrid and fuel-cell vehicles are also being carried out.
6. Basic concepts and implementation of measures regarding Corporate Governance
(Basic concepts regarding Corporate Governance)
Suzuki has continued to make positive steps towards the implementation of various measures aimed at
ensuring that our corporate activities are carried out in a fair and efficient manner. We are confident our
business organization has the desire to always retain the faith of our shareholders, customers, business partners
and all members of the regional community.
Our basic concept regarding Corporate Governance -that our corporate activities need to be carried out in a fair
and efficient manner - is promoted in all aspects of our corporate activities. Our directors ensure their
management responsibilities are clearly clarified, and their term of office is for a period of one year. This
practice allows us greater flexibly to respond to changes in the business environment. A board of five corporate
auditors includes three auditors from outside the company and we also have established an organization that
reports to the corporate auditors to enable the auditing process to be successfully implemented.
(Implementation of measures regarding Corporate Governance)
• Management organization for decision-making, its implementation and supervision, and other matters
concerning Corporate Governance
· A corporate auditor system has been adopted.
·
The board of 27 directors includes one person from outside the company, and three of the five corporate auditors are
outside corporate auditors.
·
A Corporate Ethics Committee has been established for the promotion of overall corporate ethics in the company as
well as its subordinate organizations. A managerial body has been set up to promote corporate ethics in each of our
divisions. We have also brought in a system under which a risk management headquarters would be set up by the
Committee to deal with any crisis, so that we may be able to take immediate and effective measures.
• Efforts made over the past year to establish our Corporate Governance policy
In April 2002, the company established a set of guidelines for directors and employees of the company. The
"Suzuki Corporate Ethics Rules" lays out a set of basic points for each staff member to act in a fair and faithful
manner in conformity with the law and norms of the society and company rules. Furthermore, lecture sessions
were held to ensure that employees realize the importance and the necessity of corporate ethics.
We have also made efforts to facilitate this education process for our employees by uploading information on
legal affairs onto the company homepage and by holding internal seminars.
Operating results and financial position
1. Operating results
(1) Outline of current fiscal year
During the current fiscal year, there have been indications of an upturn in domestic corporate earnings but
capital investment and personal consumption both remained sluggish and the economy, which is still in a
prolonged slump, has not yet shown any signs of recovery. Meanwhile, the global economy shifted downwards
and slipped into in recession, as shown by factors such as the deceleration of the US economy and the
continued drop in worldwide stock prices. Overall, we believe a difficult managerial
environment remains.
Under such circumstances, Suzuki's net sales in the current fiscal year amounted to 2,015,309
million yen (120.8% as against PFY), surpassing 2 trillion yen in net sales for the first time in a

17
