Internal control & Audit systems
- Corporate Governance Structure
- Internal control & Audit systems
- Compliance
- Risk management
Internal audit
The Audit Department conducts internal audits based on an annual audit plan approved by the Board of Directors, assessing compliance with laws and internal regulations, as well as the appropriateness and efficiency of operations, in order to evaluate the state of internal controls. To ensure effective coordination with the Audit & Supervisory Board members, the department holds regular meetings to review the annual audit plan and the results of individual audits, and also engages in information sharing and exchanges of views as necessary. It strives to maintain a framework that enables efficient execution of internal audits. The Audit Department currently comprises eight members, including one department head and two certified internal auditors. When additional personnel are required for audit activities, individuals designated by the President are assigned to assist.
Internal control system and Risk Management System
ALCONIX has established the following internal control system to comprehensively assess risks within the ALCONIX Group and ensure the appropriateness of operations (effectiveness, efficiency, compliance, and asset protection) and the reliability of financial reporting.
Compliance
ALCONIX is expanding its global business as an “integrated company that combines trading and manufacturing capabilities” with consolidated subsidiaries and affiliates in Japan and overseas. In order to grow sustainably in a business environment that evolves with each passing year, ALCONIX also considers it important to establish a compliance system that ensures high ethical standards among all officers.
From this perspective, ALCONIX promotes ongoing compliance education for all Group officers and employees based on the management principle of complying with all laws, regulations and corporate ethics, operating in a highly fair and transparent manner, and striving to be an honest and reliable corporate group. Through these efforts, all Group officers and employees are committed to fulfilling their social responsibilities by complying with laws and regulations while acting with integrity in accordance with corporate ethics and social norms.
Elimination of Anti-Social Forces
Our company has established the ALCONIX Director and Employee Compliance Manual. The manual includes a provision on "Confrontation with Anti-Social Forces" which stipulates that ALCONIX will not be involved in any way with anti-social forces. ALCONIX works to ensure companywide familiarity and compliance with this provision. In addition, the manual stipulates that the General Affairs and Human Resources Department will serve as the contact point for unreasonable demands from anti-social forces, and that the entire organization, including top management, will work to eliminate anti-social forces in cooperation with the competent authorities and related organizations. New business partners will also be investigated to ensure that they have no relationship with anti-social forces.
Information Management System
Our company has established the ALCONIX Director and Employee Compliance Manual. The manual includes a provision on "Appropriate Management of Information" which stipulates the proper handling and management of confidential information. ALCONIX works to ensure companywide familiarity and compliance with this provision.
In addition, the manual draws attention to awareness and ethical behavior in personal use of social media, which has been increasing in frequency recently, and we are working to ensure that everyone in the company acts in accordance with the manual.
Risk Management System
To assess and manage credit risks, ALCONIX and its Group companies have a system in place whereby items are submitted for approval using an internal authorization form in accordance with the Authority Rule and Schedule of Authority. Approval is granted after items are deliberated by the Corporate Sector. The Risk Management Committee, chaired by the president and comprising directors and the Corporate Sector general manager, meets monthly to deliberate on transactions that exceed specified thresholds for transaction value and risk. Full-time Audit & Supervisory Board members attend Risk Management Committee meetings as observers.
At the same time, internal audits enable the Audit Department to ascertain and confirm the status of compliance with laws and internal regulations in the execution of duties by employees, with the results of the audits reported to the president, directors, and Audit & Supervisory Board members. Issues identified and items requiring improvement are shared throughout ALCONIX and its Group companies as priority issues.
Internal Control over Financial Reporting
The Internal Control Committee, chaired by the Director and Managing Executive Officer (in charge of internal control), is responsible for overseeing the Company's overall internal control system, as well as the development and operation of internal controls related to financial reporting (including disclosure-related matters). The committee centrally manages the following aspects of internal control:
- Enhancement of operational effectiveness and efficiency
- Compliance with accounting standards and ensuring the reliability of financial reporting
- Adherence to laws and internal rules, including regulations and codes of conduct reflecting such laws
- Safeguarding of Company assets
In addition, the Audit Department monitors the status of development and operation of the ALCONIX Group's internal controls and compiles evaluation results, while the full-time corporate auditors monitor and verify matters including the development and administrative performance related to internal controls.
Promoting Sustainability
The Company has established the ALCONIX Officer and Employee Compliance Manual and ensures that all employees are thoroughly informed of its contents.
In addition, to raise awareness of the need to protect the global environment, ALCONIX has posted its Environmental Policy in-office and on the official website to ensure companywide familiarity and compliance. In line with this, we have acquired ISO 14001 certification for the entire company and are implementing environmental conservation activities through the operation of an environmental management system. In terms of CSR activities, Website for Addressing Social Issues through Business in our business activities are made public on our website.
Information Disclosure
Under ALCONIX’s policy regarding the development of systems and initiatives to promote constructive dialogue with shareholders, we work to establish organic collaboration by, for example, designating an officer to oversee such efforts and ensuring that information is shared among the divisions that assist in such dialogue.
As opportunities for communication with shareholders and investors, the directors in charge of corporate divisions and accounting and finance directly explain the business conditions and business activities of ALCONIX at general meetings of shareholders, interim and year-end financial results briefings for institutional investors, and individual interviews.
We hold several IR seminars throughout the year for individual investors, mainly in the Tokyo metropolitan area and the Kansai region, to provide information on our company and field questions.
Opinions from shareholders that are deemed important are reported to the Board of Directors and shared with senior management and employees as necessary.
In dialogue with shareholders, we strive to prevent leakage of insider information.
ALCONIX discloses its "Our purpose and vision","Long-term Management Plan" and numerical targets, etc. on its website, in annual securities reports, and in business reports.