Corporate Governance
Ensuring Sound, Transparent Management Through Outside Viewpoints
Unlike the committee system* in the United States, where decision-making and execution are completely independent of each other, the Daikin Group employs an integrated management framework in which directors assume responsibility for both management and execution. This integrated management framework effectively speeds up decision-making and execution. We also have mechanisms that ensure the soundness and transparency of our management.
We appoint two or more outside board members with no vested interest in our company to take part in decision-making from an outsider's point of view. We also appoint two external auditors who not only sit in on the Auditors Meeting and the Board of Directors Meeting but also on key meetings such as the Executive Officers Meeting where they monitor and manage the execution of policy. The Group Auditors Meeting, made up of auditors from major group companies, meets periodically to ensure that the entire Group's auditing and management functions are constantly improving. We also strive to raise soundness and transparency through the Corporate Advisors, who offer unbiased operational advice, and the Personnel and Compensation Advisory Committee, which works to improve the transparency of personnel matters and the compensation of directors.
* Committee system:
A system with a committee comprising mostly outside directors instead of auditors to raise management transparency.
Variety of Committees Protect Shareholders' Profit
The Independent Committee was formed to ensure that when there is a large-scale purchase of Daikin shares, Daikin's corporate value and shareholders' joint profit are protected. The committee helps provide our shareholders with impartial information so that there is transparency in our paperwork and dealings, as well as a high degree of objectivity.
To ensure that the interests of stakeholders other than shareholders are respected and protected, the board of directors oversees the CSR Committee, the Corporate Ethics and Risk Management Committee, and the Disclosure Committee, all of which work to ensure that corporate governance is based firmly in corporate social responsibility.
The Group will pursue various ways to ensure optimal corporate governance grounded in CSR by looking at ways that we can revise our next-term strategic management plan FUSION15.
Corporate Governance (as of end of March 2011)
