Internal Control Systems
The Board of Directors and the executive bodies overseen by the president are responsible for establishing and operating NGK’s internal control system. The Auditing Department, a specialized internal audit body, is responsible for assessing the status of business execution at each operating division. Moreover, NGK has established the Internal Controls Committee to manage its reporting system for internal controls pursuant to Japan’s Financial Instruments and Exchange Act.
The NGK Group Code of Conduct (revised in January 2019) was formulated as a policy embodying the Group’s corporate philosophy. These guidelines specify the Group’s fundamental stance with respect to business activities and corporate behavior to ensure it remains a company that is beneficial to society, even in the pursuit of its economic goals. The task of ensuring Group-wide compliance with the NGK Group Code of Conduct, along with laws, regulations and corporate ethics, is the responsibility of the Compliance Committee Secretariat Council, which was established by the Compliance Committee and comprises managers from NGK divisions. The Business Ethics Committee handles matters of improper acts and legal violations involving NGK executives, and the ensuring of compliance with competition laws and overseas anti-corruption laws.
Please note that at a Board of Directors meeting in April 2020, members adopted an amendment to the “Resolution for the Development of Systems to Ensure the Appropriateness of Operations.”