Basic approach to corporate governance
Our basic approach to CSR is expressed in our group basic philosophy as “Win the trust and respect of society through the continuance and development of the Topy Industries Group and the execution of one's duty as a public institution”. The Topy Industries Group places the strengthening and enhancement of corporate governance as one of our most important management issues. In order to earn the trust of our shareholders and all stakeholders, we will comply with applicable laws and regulations and its spirit as well as this Group Code of Conducts, fulfill our social responsibility, and improve management transparency.
Outline of our corporate governance system
The structural relationship of Topy's Corporate Governance System is illustrated below. The Risk Management Committee, Compensation Committee, and other standing committees report to the Management Council comprised of directors, external auditors, and several operating officers. The Management Council acts a deliberative body that finally reports to the Board of Directors. The Compensation Committee was established from this fiscal term and consists of 2 external committees and 1 internal committee to secure the fairness and transparency of the remuneration paid to the directors and auditors.
Since April 2000, we have implemented an Operating Officers System with the intent to reduce the number of directors for a more swift decision-making process.
On the other hand, the Audit & Supervisory Board is comprised of a total of 4 auditors; 2 external and 2 internal, and works full-time to audit the duties executed by the directors.
Strengthening of corporate governance
The Risk Management Committee has been set up to extract, classify, and make visible the underlying risks in the Topy Industries Group, and to consolidate the management of centralized information on high-risk matters and PDCA execution.
The members of the Risk Management Committee are mainly general managers at the headquarter office.
In addition, we established an Internal Audit Department under the direct control of our president in October 2005. 10 staff are currently working on strengthening risk management, including internal control.
Promotion of compliance
Topy Industries has been working on strengthening compliance for some time. In 2003 a Compliance Committee was set up to strengthen compliance activities. Since then, the activities have produced visible results such as setting up a contact office for whistle-blowers, publishing The Topy Compliance Guide Book and Anti-Trust Law Manual, and formulating the Topy Industries Group Basic Philosophy and the Topy Industries Group Code of Conduct. In April 2012, we launched “the Topy Industries Group Corporate Ethic Consulting Office” and “the Topy Industries Group Compliance Hot Line”, a whistle-blower system applicable to all companies of the Topy Industries Group. In addition, we have revised the contents of the Topy Compliance Guide Book to enable application to all the Topy Industries Group companies. The Guide Book has been distributed to all our domestic Group companies and their employees.
Responsibility to stakeholders
The business activities of the Topy Industries Group stretch over a broad range of fields including materials, motorization, land development, urban construction, electric power, distribution, sports and leisure, recycling, transportation and services, and are widely involved with society in playing an indispensable role in various aspects of people's lives. Topy's corporate message “One-piece Cycle” has been chosen to express the corporate attitude towards creating a new wave in each business area to build a better future through concerted efforts of the Topy Industries Group and society.
Going forward, we will contribute to the development of society by delivering high quality, cost competitive products that satisfy customers and users in accordance with the basic philosophy of the Topy Industries Group to “Win the trust and respect of society through the continuance and development of the Topy Industries Group and the execution of one's duty as a public institution”. At the same time, we will fulfill our social responsibility as a corporation by positively addressing the issues such as timely, appropriate disclosure of corporate information, contribution to local communities, and the global environment, in order to enhance the corporate value of the Topy Industries Group as well as the common interests of stakeholders.
Information disclosure for a highly transparent management
The Topy Industries Group discloses its business activity conditions and financial positions through various information tools to allow stakeholders to understand the high transparency of our management. We have started the publication of “Topy Report 2012” from this fiscal year by integrating information on CSR such as social contribution activities, environment conservation activities, and the financial report addressed to shareholders and investors. In addition, we are delivering various corporate information in real-time on our web site.