Suzuki 2004 Annual Report Download - page 17

SUZUKI MOTOR CORPORATION
business operation.
In our automobile business, we intend to achieve sales expansion of small and subcompact vehicles in the
domestic market via measures such as upgrading the sales power of "Suzuki Arena"- our sales channel for
subcompact vehicles - along with work on enhancing and improving our existing sales network, and through
focusing on areas such as strengthening our understanding of the market and improving customer satisfaction.
In overseas markets, in the marketing and product development stages, we will maintain closer contact with the
market. At our overseas plants, further upgrading of our overseas plants will be pursued through measures such
as furthering automation to facilitate improvements in both quality and productivity as well as finding innovative
solutions for cost reduction and the promotion of local procurement of parts. Furthermore, we hope to maximize
the business potential of the synergies gained by our strategic alliances with the General Motors Group to
reinforce the corporate foundation.
Efforts will be taken to develop, in a speedy and effective manner, products that closely meet demands in
each of the four major market regions in the world and to introduce them in a timely fashion. We are also
continuing to further our environmentally friendly technology. Improvements are being sought in a wide range of
global issues such as minimizing the environmental impact during the product development process, reducing
gas emissions, improving fuel consumption, reducing the amount of resources consumed, recycling, etc.
Development programs on advanced next-generation vehicles such as fuel-cell vehicles are also being carried
out.
6. Corporate governance issues
(1) Basic concepts regarding corporate governance
The Company has made positive efforts towards the implementation of various measures aimed at ensuring
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
our regional communities.
To highlight the importance of corporate ethics, we have brought in various measures, including establishing
a set of guidelines for directors and employees of the Company. The "Suzuki Corporate Ethics Rules", lay out a
set of basic points to enable each staff member to act in a fair and faithful manner in conformity to the laws, the
norms of the society and company regulations. A set of "Action Standards" has also been clarified in these rules.
In addition, a "Corporate Ethics Committee" has been established for the promotion of overall corporate ethics.
We have also established a "Corporate Ethics Promotion Headquarter" as its subordinate organization for the
promotion of the corporate ethics in each division. The "Suzuki Corporate Ethics Rules" are now accessible on
the corporate intranet for directors and employees so they are able to refer to them any time. Lecture sessions
are held to ensure that the employees realize the importance and necessity of the corporate ethics.
(2) Corporate auditing and management supervision
A corporate auditor system has been adopted. Corporate auditors are responsible for the auditing of the
proper implementation of management of the Company.
One outside director sits on the Board of directors and three outside corporate auditors are among the Board
of corporate auditors. In addition to the regular board of directors meetings held every month, extraordinary
board of directors meetings are held whenever necessary and corporate auditors always participate in board of
directors meetings. We believe discussions in the board of directors are thoroughly conducted and corporate
auditors' function of management supervision is working effectively.
(3) Structure and administration of internal control system
The Company has audit functions for our subsidiaries and affiliates both domestic and overseas in addition to
our internal audit group. Thus, along with audit by corporate auditors and audit by certified public accountants,
three types of audit are executed from the standpoint of compliance with the law, internal control and
management efficiency.
The Company has an internal audit system in which the integrity and efficiency of our internal control system
are checked periodically and the results of the checks are reported to management together with suggestions
regarding improvement and correction of problems. In addition, any important information pertaining to the
management of the company is properly reported to the board of directors.
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