Fiscal 2019 CSR Activity Report- Corporate Governance and Management Transparency

Ensuring Proper Business Conduct and Transparency

Governance

Board of Directors' positive assessment of the implementation of the Basic Policy for Internal Control Systems1

■Reporting scope
Toray Group
■Target in fiscal 2019
90%

Result in fiscal 2019

95%

  • 1 To evaluate the effectiveness of internal control relating to the Board of Directors, a questionnaire is given to all 24 directors and corporate auditors. It covers each of the nine items in the Basic Policy on Internal Control System set in accordance with the provisions of the Companies Act of Japan. In this way, internal control effectiveness is evaluated by all directors and corporate auditors, and then monitored as a KPI of the internal control system to be shared with stakeholders.

Toray Industries operates a Basic Policy on Corporate Governance based on Japan's Corporate Governance Code, and regularly publishes a Corporate Governance Report, which also summarizes the status of internal control systems.
Toray Group will continue to make every effort to ensure compliance with laws and regulations, efficient execution of duties, preservation and management of information, and control over risks of loss.
Toray Industries has set a KPI for “Board of Directors’ positive assessment of the implementation of the Basic Policy for Internal Control Systems.” The result for fiscal 2019 was 95.0%, surpassing the target of 90%.

Dialogue with Labor Unions

Toray Industries holds meetings of the Central Labor and Management Council twice a year. The meetings are attended by senior vice presidents and labor representatives at the union head level and above. In addition to briefing the union on management information about Toray Group, the meetings facilitate ongoing dialogue with the union.
Resolution of labor issues is undertaken at separate Labor and Management Council meetings.
As of March 2020, Toray Workers' Union membership stood at 8,561 workers.