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| 1.Basic Policy on Corporate Governance |
| We aim to establish good relationships with all stakeholders (shareholders, customers, client companies, employees and society), to differentiate ourselves from other companies and win an overwhelming presence and the trust of customers to enhance our corporate value. We have therefore been making improvements in manufacturing, sales, and customer service in order to enhance our reputation and strengthen the “MUJI (Mujirushi Ryohin)” brand image. We pledge to make fair and transparent disclosures to shareholders by developing proactive IR activities, and we will demonstrate our reliability by improving our business performance and increasing returns to shareholders. In our relationships with employees, we guide them toward achieving our company's goals and establish an open and stimulating corporate culture so that employees can realize their full potential. Our organizational management processes ensure constant self-reflection and self-discipline, baseon the lessons learned from a spate of corporate scandals seen in recent years. |
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| 2.Current status of Corporate Governance System for financial decision-making, and of Managerial Organization for execution of decisions and supervision |
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1) |
Currently, taking into account the size of our company and staff mobility, the Board consists of six directors within the company (six directors doubling as operating officers) and two directors outside the company. The supervisory functions and managerial responsibility of the Board of Directors are clearly stipulated, and we also promote delegation of authority, including reviews of the board system and decision-making systems as appropriate, in order to speed up implementation processes. |
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2) |
Our company adopts an audit system. Currently, the Board of Auditors consists of four members (including one full-time auditing officer). All four members are outside corporate auditors. The Board of Auditors audits the directors’ exercise of their duties by attending Board meetings and checking important documents. In addition, the Board of Auditors regularly liaises with the Audit Department, which conducts internal audits, and with the accounting auditor. |
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3) |
The Payment Advisory Board (consisting of two directors outside the company (including one chairperson), and two directors within the company) advises the Board of Directors on the payment of directors. The Nomination Advisory Board (consisting of two directors outside the company (including one chairperson), and two directors within the company) advises the Board of Directors on the nomination of directors. |
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The Audit Department (currently consisting of three members) conducts internal audits. The Department performs audits to determine whether business operations in stores and headquarters are being appropriately and correctly performed. |
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5) |
Accounting audits of our company are conducted by a team consisting of two certified public accountants with KPMG AZSA & Co., eight assistant certified public accountants, and twelve other members. Thus an environment for fair auditing is established. If a legal judgment is required, we consult lawyers who specialize in the relevant law. |
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