Corporate Governance
Separating Management Oversight and Executive Functions
To ensure the appropriate and rapid response to the changes of our times, we are committed to sound and highly transparent governance that separates the management decision making and oversight functions of directors from those of the executive officers whose functions are to perform the work.
Of the eleven directors who serve on our board, five are external directors, advising from an independent perspective. There is also no hierarchy among directors: all, including the external directors, take the chair in rotation.
The OIP Report
As SATO's unique knowledge management system, the OIP Report plays a key role in the company's corporate governance. The OIP Report is a report on original ideas, inventions and proposals that can improve the company. Every SATO employee submits to management on a daily basis a report of up to 127 Japanese characters in three lines to express their feelings, opinions, proposals and other thoughts. This provides executives with an immediate insight into the issues surrounding the Company, and enables management to take appropriate actions.
The OIP Report provides a mechanism for all employees to develop a sense of management. While it enables senior management to view things from the level of employees, it also provides an avenue for employees to express opinions from a management perspective. As such, the report constitutes a key part of SATO's corporate governance.
Internal Controls
Already aware of the need to contribute to society through its main business, SATO has sought to maintain corporate discipline and to consistently act as a good corporate citizen. As part of our efforts to pass on the SATO Basic Corporate Principles during the rapid expansion and globalization of our business in recent years, and to sustain our steady progress, we established in 2007 a committee chaired by the President and CEO to promote greater transparency and quality in all business activities. This embraces the concept of internal control.
The Company is united in its commitment to extending these activities to provide better services, to ensure smoother working processes and more accurate, transparent financial disclosure, and so contribute to the broader community.
Basic Concept of the Internal Control System
The basic policies of the internal control system of the SATO Group are described here.
