Evaluation of the Effectiveness of the Board of Directors
August 20, 2024
Summary of the Evaluation Results Regarding the Effectiveness of the Board of Directors
Our basic approach to corporate governance is to have a vision of “Change the taste of everyday life. Spread joy to the world.” The management system is designed to enable the management to check compliance with laws, regulations, articles of incorporation, etc., and to maintain that status. In order to realize this vision, we believe that establishing a management system that can direct the awareness and business activities of all directors and employees will lead to fairer and more transparent management, which will benefit all stakeholders of our company.
Based on this basic philosophy, we analyzed and evaluated the effectiveness of our Board of Directors for the fiscal year ending September 2022, and we would like to provide an overview of the results of that evaluation as follows.
Evaluation Method
(1) Eligibility
- All directors of the Company, including directors who are audit and supervisory committee members
(2) Method
- An anonymous questionnaire was conducted by a third-party organization to evaluate the effectiveness of the Board of Directors for the fiscal year ending September 2023. The results were used as a reference for discussion at the Board of Directors meeting, and the effectiveness of the Board of Directors was analyzed and evaluated.
Summary of Analysis and Evaluation Results
Our company uses a questionnaire to have directors evaluate themselves, and to analyze and evaluate the entire Board of Directors. This questionnaire was conducted with the cooperation of a third-party organization, and anonymity was ensured by issuing individual IDs to each director and having them respond directly to the third-party organization.
Based on the report of the compiled results from the third-party organization, we checked the composition of the Board of Directors, areas for improvement regarding the discussions and operation of the Board of Directors, the status of operation of the Board of Directors, the support provided to Directors, the training required of Directors, and other efforts by Directors themselves regarding the discussions and operation of the Board of Directors, and have concluded that the effectiveness of our Board of Directors is sufficiently ensured.
However, based on the results of the survey, we found that there are some areas that need improvement in the following areas:
- (1) Issues regarding discussions of medium- to long-term issues at board meetings
- (2) Issues regarding reporting to and discussion of important business decisions of subsidiaries to the board of directors
- (3) Issues regarding support systems for outside directors
The Company recognizes that these improvements are future challenges to be addressed in order to ensure the effectiveness of the Board of Directors.
We will address these issues one by one, with the help of external experts, and work to build a fair and transparent management structure and continue to work to further improve the effectiveness of the Board of Directors in order to ensure the sustainable growth of our COMPANIES and increase our corporate value over the medium to long term.
End