Internal control activities

Governance initiatives

Internal Control Activities

In order to build a corporate culture “that does not violate laws and regulations” and “a system that does not violate laws and regulations” based on the Basic Philosophy and Action Guidelines of the Topre Group, we established a basic policy on the development of an internal control system and are striving for proper and efficient business execution.

Internal Control Committee

The obligation of management to establish an internal control system to prevent legal violations and losses was clarified by the Companies Act. Based on the “Basic Philosophy,” the Internal Control Committee, which includes the representatives of each group company, has established “Action Guidelines” that each individual must keep in mind so that everybody can understand the direction that the Topre Group is aiming for. We have established regulations, manuals, etc., to embody the Action Guidelines so that we can promote work efficiently.

Internal control system

The internal control system ensures

  • The effectiveness and efficiency of business
  • The reliability of financial reporting
  • Compliance with laws and regulations concerning business activities

The processes that are incorporated into work and executed by all employees in order to ensure the above constitute the internal control system. In order to promote work efficiently and comply with laws and regulations, we have established a “corporate culture that does not violate laws and regulations,” “a system that does not violate laws and regulations” and “a system for preparing correct accounting documents,” and carry out activities that evaluate and correct the current situation continuously.

The company established an Internal Control Committee and the following three subcommittees in order to develop and promote this internal control system.

Compliance Subcommittee

For the strengthening of compliance management throughout the Topre Group, we hold meetings of the Compliance Subcommittee to diffuse awareness of compliance further among officers and employees.

Compliance education

The company implements compliance education and raises awareness through regularly held hierarchical education. We are working to improve awareness and knowledge of compliance by issuing “Topre Compliance Communication” to all employees. In addition, with “Topre Contract Communication,” we are working to notify employees about matters such as the points of caution when concluding contracts.

Establishment of an internal reporting system

We have established an internal reporting system and consultation desks (internally and at lawyers’ offices) for each group company. Reception that can maintain the anonymity of reporters is available 24 hours a day, and investigations are carried out upon receiving reports of violations of laws and regulations concerning bribery, bid rigging, etc. We are making efforts to familiarize employees with the internal reporting system and to establish the environment for its use.

Compliance system

Corruption prevention initiatives

The company has established its “Basic Philosophy” and “Action Guidelines” and to ensure that all employees are aware of and comply with them, apart from e-learning and DVD training, issues internal newsletters regularly to provide information on laws and regulations related to business, and compliance, and aims for the thorough prevention of corruption.

Initiatives for the protection of personal information

From the perspective of respect for human rights, we think that personal information should be handled with care, and are striving to ensure the proper handling of the personal information held by the company.

Risk Management Subcommittee

The Risk Management Subcommittee has been built as a system led by the President, receives reports on corporate risks implemented by each division of each group company and lists and manages important risks.

Risk management system

Handling of BCP

The company has formulated a business continuity plan (BCP) with the highest priorities of “protecting and rescuing human life” and “restoring and maintaining production and services” in response to “major risks that have a particularly large impact on the company” and is working on the handling of emergencies. With regard to the major risks for each division, we have prepared a “Prevention of assumed risks and countermeasures table” and are striving to take countermeasures. The Risk Management Subcommittee asks each base to implement BCP initiatives as required with regard to risks concerning all bases to enhance BCP. In fiscal year 2022, we formulated the basic content of the “earthquake” and “infectious diseases” sections.
The Risk Management Subcommittee will ask for BCP initiatives concerning climate-related risks as required based on the regional and geographical conditions of each base, and will manage them in relation to the risk management at each base.

Information security management system

The company has established the Topre Group Information Security Policy to manage and protect information assets acquired in business activities appropriately, has built an information security system and strives for the continuous strengthening of security.

・ Organizational safety management measures

The company complies with laws, regulations and guidelines on the protection of personal information, and strives to protect specific personal information through all of its business activities. Departments that handle personal information appoint a responsible person who manages and supervises that information and provides education and training on its handling. In fiscal year 2022, 2,144 employees at domestic group companies received education on information security.

・ Technical safety management measures

We are making efforts to strengthen information security by managing PCs that can connect to internal networks, introducing systems that prevent unauthorized intrusion, and restricting external storage devices based on the control of devices.

・ Physical safety management measures

We are striving to prevent information leaks by limiting the number of employees who can enter server rooms and by managing records of entry based on electronic locking.

・ Human safety management measures

In order to prevent information leaks, we are striving to raise awareness of information security by disseminating information security policies and rules, and providing education on information management and the prevention of leaks.

・ Management of information security incidents

We have established a system to mitigate damage and prevent reoccurrence if an incident related to information security occurs, such as an information leak, unauthorized access or virus infection.

Financial Reporting Control Subcommittee

The Financial Reporting Control Subcommittee conducts regular evaluations of the asset management and accounting of the group as a whole to ensure the appropriateness of financial affairs.
The group holds Accounting Division global training sessions to ensure the accuracy and consistency of work related to accounting, costs and finance of the group as a whole.

last updated:2023/09/29 Updated initiative details