G-TEKT recognizes that we have a responsibility to contribute to the resolution of environmental and social issues that we face through our business activities so that society can develop sustainably, and in order to fulfill this responsibility, it is necessary for us to improve our business performance and achieve sustainable growth over the medium to long term. To achieve this, we aim to establish appropriate corporate governance that enables us to provide information and engage in dialogue with our stakeholders, including shareholders, customers, employees, and the local community, to increase our transparency as a company, and to conduct ongoing business activities under an effective and sound organizational structure that ensures the rights of our shareholders. As part of these efforts, we established an advisory committee (currently the Nomination and Remuneration Advisory Committee) in 2015 and published a skill matrix in 2021 to show the experience and capabilities of the members of the Board of Directors, with the aim of strengthening accountability.
G-TEKT Basic Corporate Governance Policy
Compliance with the Corporate Governance Code
Based on research and study of the Corporate Governance Code formulated by the Tokyo Stock Exchange, we have formulated the G-TEKT Basic Corporate Governance Policy, which sets forth the basic approach, framework, and operational policies for corporate governance in order to realize effective corporate governance, and we are promoting and implementing measures based on this policy.
In light of the fact that the diversity of the Board of Directors and the increase in the ratio of Independent Outside Board Members have become important concerns for institutional investors in recent years, in the fiscal year ended March 31, 2019, the Company reviewed the composition of the Board of Directors, appointed the first female Board Member, and increased the ratio of Independent Outside Board Members to at least one-third and at least two members. In addition, we revised the standards for deliberation by the Board of Directors to speed up decision-making. These initiatives are disclosed in the Corporate Governance Report. In June 2021, the Corporate Governance Code was revised with regard to items such as improving the functioning of the Board of Directors, ensuring the diversity of core human resources, and addressing issues related to sustainability. In light of this, the Company has been taking measures such as disclosing the abilities and experience of Board Members using a skill matrix and formulating a policy for securing diversity in human resources, and will continue to respond to the revised content.
Corporate Governance Report (in Japanese)
Efforts to Build Global Governance
The Company and its subsidiaries, while sharing the same basic approach to corporate governance, are working to enhance an independent and responsible corporate governance system in line with the laws and regulations of each country and the local business environment. Moreover, we aim to improve the compliance and risk management of the entire Group by appointing the managers of subsidiaries as members of the Compliance Subcommittee and the Risk Management Subcommittee of the Company.
In the area of compliance, in addition to supporting the establishment of corporate governance systems for overseas subsidiaries by the Corporate Governance Committee, we have formulated basic policies for the entire Group regarding bribery, cartels, forced labor, and child labor. In the area of risk management, we have created a risk map for each country in which we operate and are promoting measures to deal with major risks.