Corporate Governance

In the global trend of strong requirements for transparent corporate management, Japan is expected to legislate the organization of internal controls, following that of the US. Based on such social requirements, we have reviewed its management system as a member of the Hitachi Group in order to accelerate implementation of management strategies, improve management credibility and promote global management in accordance with the Hitachi Group's management policies. Since 2003, the company adopted the committee-style corporate governance system(*), separated management and execution and realized speedier decision-making and prudent management control. As for in-house organizations, the division system was introduced to enable appropriate and prompt business management based on the different fields while the total optimization is realized through cross-functional divisions and committees.

* The committee-style corporate governance system is an organizational structure where three committees having a majority of outside directors are established in the board of directors (nominating committee, audit committee and compensation committee) as well as an executive officer to execute operations to whom a large number of resolution items of directors can be granted.