Suzuki 2011 Annual Report Download - page 22

SUZUKI MOTOR CORPORATION 21
(3) Development of internal control system and risk management system
In order to enhance corporate governance, the Company is making efforts to keep everyone informed about compliance and
to strengthen internal control system. The basic policy for construction of internal control system and its development are as fol-
lows:
(a) Compliance system for Directors
Directors respect the “Mission Statement” and the “Suzuki Action Charter” and execute their duties in compliance with the
“Rules of the Board of Directors”, the “Approval Procedures” and other rules of the Company, and mutually supervise their ex-
ecution of duties through meetings of the Board of Directors, etc. And the Company established the “Suzuki Corporate Ethics
Rules” (April, 2002) which lays out a set of basic points for Directors and employees to act in a fair and faithful manner in com-
pliance with the law, the norms of the society and company rules and observes the same. It is revised whenever necessary by
“Corporate Ethics Committee” which promotes corporate ethics in the Company. And Corporate Auditors audit the execution
of duties of Directors in accordance with the audit policies and work responsibilities set by the Board of Corporate Auditors.
(b) Compliance system for employees
In order to ensure that employees execute their duties in compliance with the law and the Articles of Incorporation of the
Company, the Company is making effort to keep everyone informed about the “Suzuki Employees’ Action Charter” which lays
out the norms of action of employees, the “Approval Procedures” and the “Job Description” which set up the proceedings of
execution of their duties in details, and other rules of the Company. They are revised whenever necessary. Furthermore, in ac-
cordance with the “Suzuki Corporate Ethics Rules”, the Company has developed compliance system for employees including
internal report system, and has educated them through various training and in-house seminars regarding compliance. And, in
accordance with the “Rule of Internal Auditing”, the audit department audits on the integrity and efficiency of various control
systems, organizations and rules, and properness of function of internal control, etc.
(c) Risk management system
The Company has set up the “Risk Management Procedure” as part of the “Suzuki Corporate Ethics Rules” to cope with
risks such as malpractices or illegal acts which could occur inside and outside the Company or such as natural disasters and
terrorism which the Company can not prevent. Whenever the “Corporate Ethics Committee” recognizes risks that could cause
urgent and serious damages to the Company’s management and business operations, the committee immediately sets up
“Risk Management Headquarters”, in accordance with the “Risk Management Procedure”, as an organization that will decide
on the measures to be taken against the occurred risk. “Risk Management Headquarters” immediately discuss and decide
policies and measures to be taken and can give instructions to the appropriate divisions and departments. These divisions
and departments are then able to communicate with each other to resolve any issues at hand.
(d) System to ensure proper business operation of the corporate group
To ensure a proper business operation of the corporate group which consists of the Company and its subsidiaries, the
Company has established the “Rules of Business Control Supervision”. It is revised whenever necessary. The subsidiaries and
affiliates report to the Company on their business operation and consult with the Company on important matters in accordance
with those rules, and departments in charge give guidance and advice to them to enhance their management structure. And
our audit department helps to make rules for the subsidiaries and affiliates, conducts guidance, supporting and auditing for
their regulatory compliance. It also promotes efficiency and standardization of their business.
Management policy