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35
annual report 2008 mitsubishi motors corporation
Guidance From Advisory Committees
The Business Ethics Committee is an advisory body to the Board
of Directors made up of six outside experts. The committee works
to spread an awareness of compliance, and it provides MMC direc-
tors with guidance and advice from an objective perspective.
Prior to its dissolution on March 31, 2008 following the
achievement of its initial aims, the Business Revitalization
Monitoring Committee monitored MMC’s progress against the
aims of the Mitsubishi Motors Revitalization Plan. The Committee
was made up of outside experts including Chairman Tomoo Tasaku
and representatives of major shareholders (total of six members).
MMC directors received advice from the Committee starting
in April 2005. The committee held a total of 31 meetings, provid-
ing important opinions and advice from an outside perspective.
Development of Internal Control Systems
Based on the “Basic Policy on the Establishment of Internal Con-
trol Systems,” MMC is continually working to improve and
upgrade systems to ensure compliance with laws and regulations
and to promote proper, effective business execution, in line with
changes in the domestic or overseas environment, in a drive to
further strengthen corporate governance.
In April 2008, MMC augmented this Basic Policy with policies
concerning financial reporting and the elimination of criminal or
unethical organizations. With regards to ensuring the reliability of
financial reporting pursuant to the Financial Instruments and
Exchange Act, which came into force from fiscal year 2008, MMC
is implementing company-wide measures led by the Group Con-
trolling & Accounting Department, Internal Audit Department,
and Risk Management Promotion Team under the leadership of
the Internal Control Promotion Committee (renamed the Internal
Control Committee from fiscal year 2008).
Development of Risk Management Framework
MMC is establishing infrastructure for company-wide risk manage-
ment systems centered on the Risk Management Promotion Team
in the Corporate Affairs Office, and is also promoting the sharing of
risk information within the company.
To promote systematic risk management and more frequent
initiatives, MMC formulated the “Risk Management Rules” and
appointed a total of 19 risk management officers (as of August 31,
2008) to each operational group.
Based on the core role of these officers, MMC is working to
establish and bolster its risk management systems.
In addition, to prepare for unforeseen contingencies, MMC
has developed systems that enable the rapid communication of
information to directors and other key personnel, as well as a swift
and accurate response.
Internal Control Promotion Framework
Board of Directors
Evaluation Team
Corporate General Manager
Department
Manager
Department
Manager
Department
Manager
Department
Manager
Promotion
Officer
Promotion
Officer
Promotion
Officer
Promotion
Officer
Promoter
Business unit Business unitBusiness unit
Promotion Officers
Business unit
Promoter Promoter Promoter
Directors in charge of finance at domestic and overseas
subsidiaries and affiliates
IT-related Internal Control
Subcommittee
Secretariat
Company Law Subcommittee
Managing Directors’ Meetings
Internal Control Committee
Internal controls over the reliability of financial reporting