Corporate Governance

Fundamental Approach

Daihatsu is working to both build good relationships with its customers and all other stakeholders and enhance its corporate governance. We are doing this based on our slogan of “Light you up,” and our vision: “Tackle the challenges of making the world’s finest small cars and creating a mobility society to stay close to customers and enrich their lives.”

Operational Execution and Supervision

Internal Control System

Daihatsu has established an internal control system based on its Basic Policy for the Development of Internal Controls, and its organization is shown on the right in the diagram entitled “Internal Control Organizational Chart.” The Internal Control Committee works to improve corporate value, ensure the reliability of financial reports, ensure compliance with laws and regulations, and improve the security of confidential information. The committee is chaired by a director appointed by the president, and its members consist of chief officers; together, they work to improve the internal control structures of the Daihatsu Group.

Internal Control Organizational Chart

Internal Control Organizational Chart

Flexible Organizational Reform to Respond to Various Issues

  Organizational Reform Purpose Organizational Reform Content
2019
  • Strengthen governance and respond promptly to market changes
  • Achieve speed management and develop next-generation management human resources
  • Reorganized into structure with five units and 12 groups
  • Integrated some operating officers and general managers into executive positions
  • Established an operational execution system with chief officers and deputy chief officers appointed from among operating officer and executive positions
2021
  • Strengthen global governance
  • Integrated and reorganized the Overseas Business Group
2022
  • Achieve prompt management decision-making and execution (Respond to various issues such as SDGs and carbon neutral production)
  • Abolished the unit system and shift to a five-group system
  • Changed deputy chief officers to executive managers (deputy executive managers)

Board of Directors / Structure

Daihatsu’s Board of Directors is chaired by the chairman and consists of nine members in total: chairman, president, executive vice president, two directors, non-resident director, full-time Audit & Supervisory Board member, and two outside Audit & Supervisory Board members (see table on the right). The Board of Directors meets once a month in principle to make decisions on corporate management and to reflect advice received from third parties, including the non-resident director and outside Audit & Supervisory Board members, in management.

Conflicts of Interest

When Daihatsu conducts a transaction with an operating officer, it complies with the procedures stipulated in the Companies Act and also approves and reports the transaction at Board of Directors meetings in accordance with Board of Directors and other rules. Transactions with the parent company are determined through negotiations with due consideration of market prices and other factors, in the same ways as general transaction terms. In addition, highly important transactions shall be approved at Board of Directors meetings in accordance with Board of Directors and other rules.