Corporate Social Responsibility

Corporate Governance

Basic Philosophy

Pacific Industrials recognizes that it is the basic corporate responsibility to comply not only with laws and regulations but also the spirit of laws and regulations. We strive to be a company that can be trusted by our shareholders, customers, workers, and community to contribute to society through honorable corporate activities. We aim for long term stability and growth, and improvement of corporate values based on CSR management. As a global company, we are working to improve our competitiveness through a strengthening of corporate governance.

Corporate Governance Framework

In order to strengthen our supervision capability and plan for quick response in management operations, Pacific Industrial clearly divides management supervision and management operations into separate functions.

The institution of corporate auditors is set up to supervise management. A total of four auditors, including two from outside the company, work closely with the internal auditing department to supervise all business.

To speed up decision making and clarify management roles/responsibilities an operations committee system has been introduced.

Overall business management is determined by the shareholders' meeting, board of directors, board of auditors, and accounting auditors. In addition, necessary management requirements and strategies are reviewed and decided at the strategy and management meetings.

The board of directors decides the basic direction of management and supervises the business operations. To make this institution most swift and effective, there are a total of 7 board members, each with an appointment term of 1 year. Since June 2015, two external directors are selected to preserve clear and objective management, and provide a third party opinion to decision making.

Internal Control System

Pacific Industrial has set in place the “Pacific Industrial Group Code of Conduct” so that each of our company's managers and workers possess high ethical standards. In May 2006, the board of directors decided the basic policy of the internal control system in order to follow our corporate laws.

In addition, based on the internal control reporting system of the Financial Instruments and Exchange Act, we have checked and streamline the related control systems to evaluate the effectiveness of internal control system for our companies including all domestic and foreign subsidiaries and equity method affiliates. We are conscious of our risk approach philosophy, and continually work to make our internal control more effective and efficient.