Activity ReportGovernance

The SHI Group strives to increase corporate value and carries out corporate governance activities with the aim to establish a management system that is highly efficient and transparent to ensure that it receives higher levels of trust from all stakeholders including customers, employees, shareholders and society as a whole.

Corporate Governance Structure

SHI is a company with corporate auditors, and within this framework, it has implemented an executive officer structure. As such, SHI separates the operational execution function from the auditing function in the day-to-day business activities of the Company. The Board of Directors comprises of ten members, of which two are outside directors. These outside directors are tasked to monitor management activities from an independent standpoint, and appropriately reflect the viewpoint of stakeholders. At Board of Directors meetings, in addition to deliberating on items as prescribed by the Companies Act, discussions are held on key management issues. The Board of Corporate Auditors comprises of four members, of which two are outside auditors. Outside auditors use their wealth of experience and strong specialist knowledge, and full-time auditors use their specialized knowledge and wealth of experience with regard to the Company’s management activities to carry out highly effective audits.

Compliance Promotion

Ethics Committee chaired by the President of SHI establishes basic principles on compliance of SHI group, and Internal Control Group is responsible for publicizing the principle through promotion system of internal control established throughout the entire group. Compliance trainings are carried out as necessary for all employees depending on their official post and rank, so that they are all familiarized with compliance. In addition, SHI conducts an annual compliance awareness survey to monitor status of employee’s awareness of compliance and improvement measures are introduced if necessary. Submission of written pledge of compliance from all managements is obligated as well. SHI has established a group-wide whistle-blowing system so that any employee can report violations or potential violations of regulations or corporate ethics. SHI is promoting utilization of the system so that such situations could be detected at an early stage.

SHI Ethics Hotline (Whistle-blowing system)

Basic stance on Tax

In order to set out the principles which should be followed by members of the SHI Group with regard to taxes, the SHI Group has established "SHI Group Tax Policy" and doing its best effort to construct and to operate the Tax Management System.

The basic tax policy of the SHI Group is summarized as below;

  • The SHI Group should properly pay tax in compliance with the tax law and international regulations of taxes.
  • The SHI Group should endeavor to establish cooperative relationship with tax authorities.
  • The SHI Group should not reduce its tax liabilities by undertaking transactions and calculations which are not in accordance with the sprit or intent of the tax law, and regulations.