CSK HOLDINGS : CSR : Corporate Governance

Basic Approach to Corporate Governance

CSK Group has three basic medium-to long-term initiatives:creation of new services that society will come to regard as essential, ensuring transparent management, and contributing to social sustainability. As a precondition for achieving these initiatives, the Group is building a structure for corporate governance that is transparent and highly effective, as described below.

	Holding company Structure

We aim to achieve highly transparent Group management by separating supervisory and auditing functions from business execution functions. At the same time, we are endeavoring to speed up decision-making on matters related to business strategy, and further strengthen our supervisory and auditing functions and our execution functions.

	Group management System

(1)	Regularly scheduled meetings for the CEO of each Group company are held to increase communication and strengthen business linkage between CSK HOLDINGS and the Group companies, and also among Group companies themselves.

(2)	CSK Group has established a flexible and dynamic management structure that strives to promote permeation of management policies, collection and sharing of information through sessions at which the directors of Group companies report on results, meetings that bring together executive employees, and liaison meetings with the participation of staff members in charge of practical business.

	Internal control Systems

Three internal control systems are run in parallel in the operation of the Group. Firstly, there is the internal control system required by the Company Act; secondly, an internal control system for financial reporting, based on the Financial Instruments and Exchange Law; and thirdly, an internal control system for timely disclosure, based on the regulations of the Tokyo Stock Exchange. We aim to achieve a higher degree of transparency in Group operations through the proper maintenance and operation of these three internal control systems.

	Board of Directors

(1)	Of the six directors, two are appointed from outside the Company, with the aim of strengthening management oversight and enabling the presentation of diverse and objective viewpoints during the decision-making process.

(2)	In addition to regular monthly meetings, the Board of Directors holds extraordinary meetings as necessary in order to implement flexible management.

	Board of corporate Auditors

(1)	Three of the four members of this board are external auditors, appointed to enhance management transparency and auditing and monitoring of management activities.

(2)	Regular Group auditors' meetings are held to enhance Group auditing functions.

	Disclosure Policies

We are striving to achieve highly transparent Group management. We have formulated disclosure policies so that shareholders, investors and other stakeholders can receive important information in a fair, timely and appropriate manner.