Internal control & Audit systems
- Corporate Governance Structure
- Directors & Auditors
- Internal control & Audit systems
- Compliance
- Risk management
Internal audit
The Audit Department conducts internal audits based on the annual plan to check the status of compliance with internal regulations and the appropriateness and efficiency of operations, and confirms the status of internal control. After an audit is completed, the president, internal directors, and related parties attend an audit review meeting for a report on the results of the audit and to require the submission of an improvement plan for any items pointed out as requiring improvement. The Audit Department works closely with the company’s auditors and accounting auditors to ensure that accurate audits are conducted. If the Audit Department needs to supplement personnel for auditing, it will add persons appointed by the president.
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 as a set of action guidelines under ALCONIX's corporate philosophy. 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 as a set of action guidelines under ALCONIX's corporate philosophy. 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
With the president as the chairperson, the general managers of administrative departments serve as members who are responsible for the centralized management of the following items related to internal control.
- Enhancing the effectiveness and efficiency of operations
- Compliance with accounting standards and ensuring the reliability of financial reporting
- Compliance with laws and regulations, as well as internal rules including the corporate philosophy and various codes of conduct reflecting them (hereinafter collectively referred to as "laws, regulations, and internal rules")
- Protection 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
Our company has established the ALCONIX Director and Employee Compliance Manual which reflects respect for the position of stakeholders through internal regulations, and it has posted the corporate philosophy in the workplace and on the official website to ensure companywide familiarity and compliance.
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, the themes of “minor metals, rare earths, and social contribution” and “recyclable resources and the environment” 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 management philosophy, target management indices, and medium-term management plans on its website, in annual securities reports, and in business reports.