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 business segment in accordance with the 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 of that Group companies.
- Internal auditing departments are responsible for 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. In addition, the SCREEN Group has introduced a system that enables approvals of specific business decisions within the Group companies.
- The Group appoints officers in charge of business strategy for implementation of internal control for SCREEN Holdings. For Business Operating Companies and Functional Support Companies, officers in charge of CSR are appointed.
- 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 targeting at specific themes or staff.
- Regarding to the Group’s Corporate Ethics Help Line, the Group has introduced Navex Global, a global web reporting system compatible with multiple languages, in order to detect any domestic and international misconduct at the earliest stages and to ensure that improvement measures are properly in place.
(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. SCREEN Holdings identifies risks common to the entire group, select Group Key Risks, and determines the direction of risk management through the "Group Risk Committee" (held twice a year), which is responsible for assessing the status of risk management for the entire group.
- SCREEN Holdings has emergency procedures in place in accordance with the Business Continuity Management Regulations. At the same time, each business site carries out disaster drills and practices. As a countermeasure againstCOVID-19, we are running a pandemic BCP that includes overseas group companies.
(4) Duties of Directors
- The Board of Directors met 14 times during the fiscal year in order to resolve important decisions and to supervise the execution of duties by the directors.
- The Company's Board of Directors consists of eight members, with four of them are external directors. To ensure the legality of the execution of duties and strengthen the supervisory function, the Board of Directors Regulations stipulate that at least one-third of the directors must be external directors.
- The Company's Management Committee met 13 times during the fiscal year for review of management execution and provision of assistance to the Board of Directors and the Representative Director in making decisions.
(5) Effectiveness of Audits by Corporate Auditors
- Corporate auditors attend such important meetings as Board of Directors and Management Committee meetings in order to provide advices and receive reports from departments in charge of internal auditing, internal control and compliance.
- SCREEN Holdings has established a department specializing in supporting the duties of corporate auditors, with dedicated staff members operating under instructions from the corporate auditors.