It is important to enlighten not only the management but also all members within the company, as it impacts the entire organization. By permeating corporate governance to all employees through regular and continuous internal education, the entire company will adhere to corporate governance. Therefore, our company is focused on each individual being aware of corporate governance and striving to improve the way they and their team members conduct business processes.

When enlightening, we emphasize why it is important to strengthen corporate governance and what kind of structure and initiatives are being implemented to achieve it. We believe that conveying the significance and purpose is more important than strictly enforcing rules and systems. If the reasons are conveyed correctly, employees will naturally act in accordance with the rules.

Establishment of Internal Controls In order to strengthen corporate governance, it is also important to establish internal controls. It is crucial to both establish internal controls and clarify the roles of the Board of Directors and the audit department, which are essential for initiatives in corporate governance. Our company is reevaluating the establishment of internal controls and the way the company operates, and thoroughly implementing measures to prevent misconduct. For example, we optimize business processes using IT tools and take measures to prevent fraud on the system.

Setting up a Third-Party Oversight Mechanism Setting up a third-party oversight mechanism is effective in preventing misconduct by some members of the management and employees. Therefore, our company has appointed auditors. Third-party oversight increases the transparency of corporate management from the perspective of shareholders and investors, leading to increased trust. In addition, with a third-party perspective, it is easier to discover opaque business processes and rules that may not have been noticed internally. Since some issues may be difficult for employees to point out, auditors are the most effective in strengthening corporate governance.