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Corporate Governance

INTEGRATED MANAGEMENT FRAMEWORK ENSURES SOUNDNESS AND TRANSPARENCY BY IMPROVING MONITORING FUNCTION
CONTINUE TO BOOST CORPORATE VALUE

Through its corporate governance, Daikin Industries strives to raise corporate value by carrying out its decision-making with foresight and by executing business with increasingly greater speed, transparency, and soundness, all in line with Group management challenges and changes in the business environment.
We strive to improve our current integrated management framework, under which directors assume responsibility for both business execution and management to fulfill the responsibility for overall management together by making strategic decisions quickly and providing appropriate supervision. We also seek to improve the monitoring function of third parties including multiple outside directors.
Aiming for management with even greater speed, soundness, and transparency, we will continue to boost corporate value by seeking and implementing new ways to achieve optimal corporate governance as we undertake best practices in all facets and at all levels of the Daikin Group. (We appoint three outside board members and two outside auditors with no vested interest in our company.)
The Group Auditors Meeting is held periodically in order to reinforce the entire Group's auditing function, consisting of Audit & Supervisory Board Members from major group companies. The HRM and Compensation Advisory Committee is for improving the transparency of personnel matters and the compensation of directors. We also set up the Internal Control Committee, the Corporate Ethics and Risk Management Committee, the Information Disclosure Committee and the CSR Committee under the supervision of the Board of Directors. Through these initiatives, we have strived further to improve soundness and transparency.
Aiming for management with even greater speed, soundness, and transparency, we will continue to boost corporate value by seeking and implementing new ways to achieve optimal corporate governance as we undertake best practices in all facets and at all levels of the Daikin Group.

As of the end of July 2016

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