Corporate governance
We devote thorough efforts to steady business development centered on core business operations, and promote highly transparent management functions. We undertake management that emphasizes enhanced internal control functions beginning with the optimization of management organizations and decision-making, in order to put our corporate philosophy into practice.
Corporate governance
Our basic approach to corporate governance is to promote highly transparent management that is committed to the steady development of operations in our core business domain.
Our corporate philosophy is: “We contribute to the health and happiness of people around the world through pursuit of excellence in life science in general and our research and experience in microorganisms in particular.” In the pursuit of this philosophy, we believe it is important to implement transparent management with an emphasis on well-developed internal control functions.
Corporate Governance (For Investors)
For details, see “Corporate governance” of the Sustainability Report
Compliance
■Compliance Committee
Our Compliance Committee, established in 2000, is composed of independent outside experts. This committee regularly meets with directors of Yakult Honsha to discuss such themes as the compliance promotion situation of each department. Members provide wide-ranging opinions and recommendations related to overall corporate activities from the perspective of compliance, as well as practical advice regarding the theme of each meeting.
In fiscal 2021, the committee met in September to discuss the status of accounts and finances as well as Yakult Group Global Vision 2030, and again in February to discuss the Yakult Group Environmental Vision.
■Corporate Ethics Committe
Our Corporate Ethics Committee, established in 2002, is primarily composed of independent outside experts. This committee convenes regularly for checking on the implementation status of our corporate ethics activities (such as refusing to engage with organized crime groups). Through oversight by committee members, we work on ensuring sound management. In fiscal 2021, this committee held a meeting in November.
■Internal reporting system
We set up the Yakult Compliance Hotline in 2006 as an internal reporting system for quickly discovering and correcting any violations of laws and internal rules during the execution of business. The system is intended for directors and employees (including contract employees and part-time workers) at Yakult Honsha, Group companies and associations. We have established internal and external (consulting law office) contacts to operate the hotline, and have ensured the protection of whistleblowers through Internal Reporting Regulations that assure the confidentiality of reported information and prohibit the adverse treatment of whistleblowers.
Employees are informed about this system during training for new employees and level-specific training. We also gather feedback from workers by regularly conducting compliance surveys.
Outside Japan, we have established internal reporting systems at Group companies in Guangzhou and the United States. At Yakult S.A. de C.V. (Mexico), reports are accepted from both inside and outside the company, including from customers and suppliers, and can be filed by email via a website. Depending on the content of the report, the reporter may be contacted by the Auditing Department for discussion or to confirm details, after which the matter is reported to the Internal Control Committee and swift action is taken.
For details, see “Compliance” of the Sustainability Report
Risk management
■Risk Management Committee
We have established a Risk Management Committee, comprised of Executive Directors and chaired by a Senior Managing Executive Officer and Director, that heads cross-organizational risk auditing and response throughout the Group to prevent risk occurrence.
The management level takes control of risk identification, discusses the various risks as necessary at each meeting (with important matters brought to the Board of Directors and the Management Policy Council, formed of Directors and Auditors) and deals with them accordingly. We then disclose information to shareholders and other stakeholders in our annual securities report.
■Risk identification
From fiscal 2021, we have identified 18 risks related to not only weather, climate change and disasters, but also brand defamation, intellectual property rights, lawsuits, compliance, mergers and acquisitions, financial exchange, information systems, management strategy impact, infectious disease outbreak, ocean plastic, reliance on Yakult series and the competitive environment, among other issues.
■Scope of risks
The scope of risk evaluation goes beyond direct operation of Yakult to include raw materials, suppliers and consumers that form both our upstream and downstream value chain. Cross-organizational risk auditing and Group response is handled mainly by the General Affairs Department, while each department handles risk management related to its own operations.