Fair Management
CSR Structure and Group Governance
Alps Group CSR and Internal ControlsVOICE:Innovation through making business processes visibleUpgrading and Enhancing Alps Group Governance
Alps Group Internal Controls and CSR Promotion Stucture
With fiscal 2006 as the first year for Alps Electric’s CSR initiative, a CSR Committee was established and CSR Officers were appointed at each business location in Japan and overseas. As Alps Electric also serves as the headquarters for the entire Alps Group, CSR Committees were subsequently established at Alpine Electronics and Alps Logistics, both of which are parent companies of their respective businesses within the Alps Group. In so doing, the Alps Group has developed a structure for promoting Group-wide CSR initiatives. In cooperation with Group companies and related departments, we endeavor to comply with new company law requirements of 2006 and are developing an internal controls system covering the Group, along with Group-wide CSR activity.
As stipulated in Group regulations, the Board of Directors at Alps Electric deliberates and reports on important matters concerning Group companies. While the Compliance Office and Legal Department examine their legality, the Corporate Accounting Department assesses financial and investment performance. This arrangement is designed to facilitate swifter and more precise deliberation and decision-making. In fiscal 2006, resolution standards in the Board of Directors rules and bylaws were revised to tighten internal controls, and new CSR-related rules were also established. Furthermore, the Group Auditors Liaison Committee meets on a regular basis in order to strengthen collaboration among auditors and to share audited information.
We will continue to promote sound and efficient corporate activity, fulfilling our public and social mission as a Group.
Yuichi Matsuo
Business Process
Visibility Project,
Alps Electric Headquarters
With the Financial Instruments and Exchange Law coming into effect in Japan last year, company management is obliged from fiscal 2008 to evaluate its internal controls over financial reporting, and to disclose the results of the evaluation in the form of a report. The Business Process Visualization Project that I am involved in is aimed at creating internal controls unique to Alps Electric. Through making processes, rules and risks visible, we are committed to establishing effective internal controls over financial reporting, and to innovation of business procedures in the future. Five working groups in Japan have commissioned a system for document creation, and we have just begun the first phase for establishing internal controls for financial reporting.
My role in the project includes defining the scope of evaluation, developing standards for enforcing internal controls, and examining the documents produced.
The project will also be implemented at our overseas affiliates, and I want to ensure that innovations in business procedure will become a permanent feature of Alps Electric’s corporate culture.
Alps Group defines corporate governance as “the design and operation of a framework that achieves sound, efficient and transparent management by motivating top management to be committed to appropriate and efficient decision-making and business execution, and prompt reporting of outcomes to stakeholders in order to increase corporate value.” Placing top priority on maximizing benefits for shareholders and all other stakeholders, the framework is based on objectives that maximize corporate value, satisfy stakeholder interests in a balanced manner and return profits directly or indirectly to stakeholders.
Based on these principles, the Alps Group seeks to develop and strengthen its corporate governance by ensuring sound and efficient management through a corporate auditor system.
