Corporate Social Responsibility
Daihatsu has established the Daihatsu Group Philosophy, the Daihatsu Group's Basic CSR Principles and the Daihatsu Group Action Guidelines. Together, they provide the framework that guides Daihatsu as it strives to fulfill its mission of "manufacturing compact cars that appeal to consumers all over the world," while at the same time transform itself into a truly global Group. Driven by this philosophy, set of principles, and guidelines, Daihatsu works as a corporate group to share the management direction and values to meet the expectations of all stakeholders, including shareholders and customers. In March 2015, Daihatsu reviewed the Daihatsu Group's Basic CSR Principles and reflected the changes in the business environment, both in Japan and overseas, including the falling birthrate and aging population in Japan, improved awareness of rights among workers in emerging economies, and worsening environmental issues. This review helped to clarify the stance of the Daihatsu Group's initiatives and make them easier to understand.
Daihatsu's Corporate Governance System
Daihatsu has 11 directors (as of June 26, 2015) and a Board of Directors (which in principle meets once a month). The board makes decisions on the execution of important operations, and supervises the directors in the execution of their duties. There is also a vice president's meeting (which in principle meets once a week), which is attended by the directors and full-time corporate auditors. During the meeting, the participants discuss and report on management matters of importance. Daihatsu has also introduced the executive officer system and the functional business groups system to respond to the globalization of business areas, as well as enhance corporate governance and strengthen the management structure. It promotes the idea of realizing "a clear delineation of responsible parties" and "an organization that follows through on its missions" by strengthening and accelerating business execution functions, and having each functional business group ensure that each business is performed to completion. Daihatsu is also working towards a more strategic use of human resources by binding its organization together. At the 174th Ordinary General Meeting of Shareholders held in June 2015, Daihatsu elected one Outside Director to reflect the views of external parties within its management decision making, thereby further strengthening its corporate governance. Daihatsu believes that the Outside Director, drawing upon his or her expert knowledge and experience, will be able to provide the group advice on management decisions.
Daihatsu has established a structure in which the Board of Directors, including the Outside Director, multilaterally checks whether the management decisions made by Directors are appropriate. In addition, Daihatsu has also adopted a corporate auditor system in which three Outside Corporate Auditors conduct audits from an objective and neutral standpoint to monitor and supervise Directors in the execution of their duties.
Current Status of Internal Control System and Risk Management System
Daihatsu's internal control system reflects the fact that it has adopted a corporate auditor system as stipulated in the Corporate Law of Japan. This system involves the supervision of business execution and the related decision-making by the Board of Directors, as well as auditing by the corporate auditors and the Audit Committee. In addition, Daihatsu conducts audits through the Internal Auditing Department on a regular basis to examine and evaluate activities and systems according to the Company's management policies from a fair and just position. The Company is also audited by an accounting auditor, and its corporate auditors exchange opinions with this auditor as needed.
Daihatsu has established the Internal Control Committee, chaired by a director whom the president appoints, with the chief officers of the groups of the Company acting as committee members. The purpose of this committee is to improve corporate value and ensure the reliability of financial reports and compliance with laws and regulations. The Internal Control Committee adjusts internal control systems in accordance with the Financial Instruments and Exchange Act and the U.S. Sarbanes-Oxley Act, and seeks to enhance the companywide internal control system by including personal and other classified information. For the Company's subsidiaries and other Group companies, we ensure the enforcement of internal control activities through the affiliated company management system. In addition to the control activities that are carried out on a regular basis, for operations that require control, risk management, and compliance in each division, we ensure that internal audit activities are conducted under the supervision of the Export Management Committee, the Daihatsu Environmental Meeting, the Joint Labor-Management Conference, and the Functional Labor-Management Coordinating Committee. For the Company's subsidiaries and other Group companies, we have set up a system for managing affiliated companies to ensure that internal control activities are properly performed.Daihatsu has published the Employee Action Guidelines, which provides an overview of appropriate conduct as a corporation as well as the basic attitude and employee conduct policies concerning relationships with society, business partners, and external organizations.
Group-wide efforts include the release of the Anti-Corruption Guidelines and the establishment of rules for advance reporting and consultation with the Company, the parent company, and subsidiaries. Corporate Governance/Corporate Social Responsibility
Internal Control Structure
Daihatsu has published the Daihatsu Group Action Guidelines to help guide the actions of its employees. This set of guidelines provides an overview of appropriate conduct as a corporation, as well as the basic attitude and employee conduct policies concerning relationships with society, business partners, and external organizations. Through these efforts, Daihatsu ensures that compliance is thoroughly implemented internally and throughout the Group.
In addition, Daihatsu has also established the Employees' Voice Helpline system. This system allows employees to anonymously offer information about the risk of acts at the workplace in violation of laws, social ethics, human rights, or internal company regulations, as well as report violations that have already occurred. The system helps the Company implement measures to prevent the occurrence of these acts, as well as take quick action in the event of an emergency.
Outside Directors and Outside Corporate Auditors
Daihatsu considers it is standard practice to ensure it is aware of the role it plays in society, that it performs this role in a fair manner without favoring specific interested parties, and that management performs its duties in an objective and neutral manner. To help maintain this standard, it elected one Outside Director and three Outside Corporate Auditors (June 26, 2015).
The Outside Director is involved in the administrative judgments and decision making at Daihatsu. This director offers a great deal of advice, drawing upon his extensive experience and knowledge in wide a range of fields, including his own fields of specialty.
The Outside Corporate Auditors take part in the meetings of the Board of Directors. They use their broad perspective to provide advice to Directors, and exchange views with other Corporate Auditors. Prior to holding meetings of the Board of Directors, Daihatsu notifies both the Outside Director and Outside Corporate Auditors about the agendas of the meetings and explains the relevant matters.
Environmental Conservation Activities
Daihatsu considers tackling environmental problems to be one of its top priority management issues. It also positions making a sustained contribution to the future of society through the provision of eco-friendly compact cars with a limited impact on the environment as the key element of its environmental policies. To this end, it has established the Environmental Affairs Department to promote the environmental activities of all the Daihatsu Group companies. The Group as a whole has implemented measures to address environmental problems throughout all stages, from products and production to recycling. Daihatsu has obtained ISO14001 certification, an international environmental management system standard, for all of its production plants, and has been working in an organized and consistentmanner to reduce the environmental burden of its business activities.
In accordance with the Ministry of the Environment’s Environmental Accounting Guidelines, Daihatsu monitors its environmental-related investments and maintenance costs. In the year ended March 31, 2015, environmental conservation costs came to ¥11.975 billion, or about 1.0% of nonconsolidated net sales.
Policies and Measures to Encourage the Active Role of Women
The Company proactively maintains an environment conducive to both work and raising children so that women can play an active role at the workplace. To date, the Company has introduced various programs to support its female employees. These programs include a childcare leave system that lasts until the child reaches the age of two (which is longer than the legal statutes); shortened hours and a child-care leave system for female employees with children 10 years old or younger; a maternity leave system for pregnant employees; and the return-to-work system for female employees who have to resign because their spouse was transferred.
In addition, Daihatsu has implemented measures to help female employees play an active role at manufacturing facilities, such as actively stationing women on the production lines.
Environmental Conservation Cost