Internal Control Committee

Basic approach

The Group promotes the internal control system in pursuit of the stable and efficient performance of its corporate activities, and engages in initiatives to ensure the reliability of its compliance risk management , information security and finance reports. Specifically, control standards have been prescribed and business is executed based on these, in addition to efforts being made to build the Group’s internal control system so that each respective department concerned can efficiently hold consultations, share information, and transmit instructions and/or requests relating to internal control. In addition, the Group is endeavoring to establish a system that supports audits in order to ensure the effectiveness of audits performed by corporate auditors.

Establishment status

The Group, in order to build internal control, has established the Internal Control Committee at our Company, and the General Affairs Department is the department responsible for this committee. In addition, the Management Department of each group company is responsible for overseeing internal control in each group company. The Internal Control Committee regularly receives control status reports from each of these group companies, conducts verifications, and provides the necessary instructions.

Compliance

Pursuant to the Code of Conduct, the directors and employees thoroughly perform their duties towards the realization of the corporate philosophy, under the premise that our corporate activities comply with the law, Articles of Incorporation, company regulations, and social ethics. For this reason, we have established the Compliance Subcommittee within the Internal Control Committee, promoting compliance activities throughout the group, endeavoring to expand, permeate, and establish awareness of group compliance, and in addition, have established an internal reporting system as well as operating the "Morinaga Milk Helpline," which serves as an internal reporting and consultation system in which the person making a report can provide information directly to an external attorney, as well as the internal consultation help desk.
For information on compliance promotion systems and initiatives, please see here.

Risk Management

We identify individual risks, determine the person responsible for managing each individual risk, and are promoting the construction of a risk management system. Toward this, we have established the Risk Management Subcommittee within the Internal Control Committee, and promote the establishment of both a reporting and cooperation system. In addition, in the event of an unexpected accident occurring, we respond promptly in accordance with the regulations on crisis management, preventing the expansion of damage and keeping damage to a minimum.
Please see here for information on our risk management systems and initiatives.

Information Security

The Company regulates information security structures responsible for information asset management, and conducts management and instruction for them in order to appropriately manage information and maintain and improve information security. For this purpose, an Information Security Subcommittee is set up within the Internal Control System Committee to clarify the issues related to information security for the Company overall, as well as to establish a system for drafting and executing countermeasures and leading monitoring efforts.
For information on our information security systems and initiatives, please see here.

Ensuring Reliability of Financial Reporting

We thoroughly manage the work processes that are necessary for the creation of financial reports, including the documentation of business procedures. Toward this, we have established the Financial Reporting Subcommittee within the Internal Control Committee, maintain close contact with the accounting auditors, and are promoting the establishment of a system that ensures the reliability of the entire group’s financial reports.

Ensuring the effectiveness of audits by corporate auditors

In addition to maintaining and strengthening the system for reports from across the group, protecting reporters, and thoroughly managing information, we are promoting the establishment of a system where corporate auditors attend key meetings and receive explanations from stakeholders. In addition, we have appointed employees to assist the corporate auditors in their duties.