Corporate GovernanceGovernance

01Corporate Governance

In accordance with the "DOWA Group’s Values and Code of Conduct", the DOWA Group is working to realize highly transparent and open management, together with guaranteeing sound corporate management, and increasing the quality and efficiency of management.

For details, please refer to the report on our corporate governance

Corporate Governance System

The DOWA Group adopted the executive officer system to soundly and effectively manage the organization, to speed up decision-making and for effective management. It also adopted the holding company system to separate business units as subsidiaries.
In addition, by (1) establishing a Board of Auditors, and (2) appointing outside directors, we aim to ensure the soundness of management.

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02Internal Control Activities

To strengthen corporate governance, we encourage each company in the group to share the basic policy and the system of internal control with DOWA Holdings (Holdings Company) and also entrust each company to conduct their own activities which shall exploit each company’s uniqueness. This ensures effective and efficient internal control based on the holding company system.

Internal Audit

The internal audit based on the internal audit rules prescribed by the DOWA group involves all corporate activities, such as accounting audit, legal audit, safety and environmental audit etc. Our CSR department and each of the related departments and group companies cooperate with each other and conduct the internal audit, and report its results to the directors, auditors and relevant departments.
In FY2016, we conducted briefings at 7 domestic bases, 1 overseas base, internal audits in 12 companies and overseas internal audits in 9 companies in Europe, South East Asia and China, as a part of strengthening the internal control.

Please refer to our annual report about the basic policy for the internal control system and its operation.

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03Compliance

Within the DOWA Group we have positioned “legal compliance” as the foundation for corporate management, and based on the "DOWA Group’s Values and Code of Conduct", we are working on measures to strengthen internal control and education as core areas. In addition, each company in the DOWA Group aims to improve the awareness of compliance as they deal with the annual internal audit (legal audit).

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04Risk Management

The DOWA group addresses risk management to properly control risks that may hinder the realization of our business philosophy and achievement of our business plans, and to fulfill our social responsibilities, and contribute to the improvement of our sustainable corporate value. Among the risks that beleaguer the group, the board of directors is responsible for the “Business risks” and the CSR department is responsible for the “CSR risks” in cooperation with other departments.

Business Continuity Plan (BCP) Initiatives

The DOWA group has prepared a business continuity plan (BCP) by location and business entity to respond to natural disasters, such as large-scale earthquakes, typhoons, floods caused by torrential rains etc., and is making efforts to avoid risks so that business activities can continue when there is an emergency. BCP was reviewed on a regular basis and in FY2016, 15 business subsidiaries reviewed the supposed targets and countermeasures of BCP.
In addition, we strive to maintain and improve the initial response capability by conducting emergency drills once a year, establishing initial emergency response headquarters at an enterprise level and in business companies and each division of the business unit, confirming safety of employees and reporting the damage situation between each emergency response headquarters.

Survey of BCP Formulation in Supply Chain

The DOWA group mainly deals with B to B business and a disruption of the supply chain means a strong impact on the production and sales of customers at delivery destinations, therefore, through our CSR procurement, we are checking the formulation of BCP regarding rapid business restoration and its continuation in the event of a disaster, for the benefit of our main partners. For the business partners who are not yet decided, we explain the importance of the initiatives and request strengthening of BCP countermeasures.

DOWA Hotline Desk

With an aim of encouraging the early detection of risks associated with corporate activities and making employees find the workplace environment safer and more comfortable, we have established a "DOWA Hotline desk" that allows direct consultation with corporate lawyers. Reporting is done through intranet, poster, etc. in which the confidentiality of reporting, etc. is maintained and guaranteed that the whistleblower is not subjected to unfair treatment. To build a healthier partnership with business partners and collaborating companies, we have opened the window of the DOWA Hotline desk outside the company so that it can be availed by the employees of business partners and collaborating companies. At the desk, we maintain the confidentiality of consultations and opinions received and respond promptly and appropriately.

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05Relationship with National and Local Governments and Industries

The DOWA Group is promoting activities related to public policies such as international collaboration, participating in councils and forums at government and industrial organizations, solving social issues, establishing and reviewing legal systems.

Example of Participation

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06Participation in International Organizations and Consortiums

The DOWA group has been participating in the UN Global Compact (UN GC), which is a voluntary international corporate citizenship advocated by the UN, since 2009. The DOWA group is committed to respecting and implementing the GC’s ten principles in four areas of the Global Compact of human rights, labor, environment and anticorruption - these are geared towards sustainable development of society.
Even in formulating CSR procurement policies and guidelines, we reflect the principles of global compact, such as respect for human rights and elimination of child labor.

Global Compact Network, Japan

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07Efforts for Human Rights and Corruption Prevention

Based on the 10 principles of the UN Global Compact, the DOWA Group prohibits child labor, forced labor and unfair discrimination due to nationality, race, ethnicity, religion, gender, age or disability, and works to prevent corruption.
Regarding the consideration of human rights within the DOWA Group, we conduct a questionnaire annually of our business subsidiaries, including offices overseas, to try and grasp the current situation. In addition, for business subsidiaries in Japan, we are also working on human rights education for employees by holding seminars about mental health and power harassment in order to deepen understanding about human rights that will lead to good practices in the workplace.

Efforts for Human Rights Through the Supply Chain

In order to promote human rights initiatives with business partners through the supply chain, not only do we share our CSR policies and guidelines when making visits for CSR inspections, but we also explain about the human rights situation overseas such as child labor and illegal labor. While in Japan it is hard to feel the immediacy of the human rights problem, we are working to gain understanding about the background of social issues and its relationship to companies.