Striving to ensure that internal control systems are appropriately in place, SCREEN Holdings periodically inspects the status of internal control implemented by Group companies, including Business Operating Companies and Functional Support Companies.
(1) Management of Group Operations
- SCREEN Holdings systematically manages the operations of Group companies based on their classification by business segment in light of roles and responsibilities assigned to each member as stipulated by SCREEN Group Code of Management.
- Operational status at each Group company is managed and supervised by such means as dispatching directors, corporate officers or employees from the managing Group company to serve as directors and corporate auditors at other Group companies.
- Internal audit departments are charged with conducting internal audits covering business units across the Group based on internal audit implementation plans.
- In accordance with in-house rules regarding organizational responsibilities and authorities, important business decisions made by a Group company requires the prior approval of SCREEN Holdings or other relevant Business Operating Companies or Functional Support Companies. Also, the SCREEN Group has introduced a system for authorizing specific business decisions in a way that transcends traditional boundaries between Group members.
- Officers and general managers in charge of CSR are appointed at SCREEN Holdings, Business Operating Companies and Functional Support Companies to ensure internal control at these entities, while the SCREEN Group CSR Committee meets on a quarterly basis to assess the status of compliance and risk management at Group companies and to take necessary steps to address relevant issues.
- In line with the SCREEN Group CSR Charter, the Group has established its Code of Conduct. With the aim of ensuring that all employees understand this Code of Conduct, the Group implements in-house staff education at each Group company in Japan and overseas. The Group also provides compliance education aimed at addressing specific themes or meeting the needs of specific individuals on an as necessary basis.
- The Group operates its Corporate Ethics Help Line to detect any misconduct at the earliest stages and to ensure that improvement measures are properly in place.
- SCREEN Holdings has established a subsidiary in China that operates under its direct supervision, thereby ensuring the robust management of multiple subsidiaries operating in the region.
(3) Risk Management
- In accordance with the SCREEN Group Code of Risk Management and other relevant in-house rules, SCREEN Holdings is engaged in initiatives aimed at identifying and mitigating business risk associated with each Group company and, as the holding company, has in place a system for assessing the status of risk management for the entire Group.
- Emergency procedures are in place in accordance with the Business Continuity Management Regulations, while each business site carries out disaster drills and practices emergency responses.
- The Group has updated its rules regarding the protection of privacy information to secure conformity with the revised Act on the Protection of Personal Information.
(4) Effectiveness of Audits by Corporate Auditors
- Corporate auditors attend such important meetings as Board of Directors and Management Committee meetings to contribute their opinions while receiving reports from departments in charge of internal auditing and CSR.
- SCREEN Holdings has established a department specializing in supporting corporate auditors in the execution of their duty, with dedicated staff members operating under instructions from corporate auditors.