CSR Guidelines & Activity Reports

Corporate Governance and Management Transparency

Governance

Continually revise management systems, strengthen internal controls and strive for timely and appropriate information disclosure as part of efforts to fulfill the company's social responsibilities.

Basic Approach

From the outset, one of Toray Group's managerial principles has been that the purpose of a company is to contribute to society. The Group has developed a Management Philosophy that incorporates this principle.
The Group's Management Philosophy is structured with the following components: the Corporate Philosophy, Corporate Missions, and Corporate Guiding Principles. The Corporate Missions specify the Group's commitment "To provide our shareholders with dependable and trustworthy management," and the Corporate Guiding Principles stipulate the Group's commitment to "Obtaining the trust of society and meeting the expectations by acting fairly while maintaining high ethical standards and a strong sense of responsibility and maintaining transparency in management."
In establishing its corporate governance structure, the Group seeks to fulfill these philosophies as its basic policy.

Structure

Toray Industries, Inc. operates as a company with a Board of Corporate Auditors and Board of Directors. The Board of Directors, which includes outside directors, decides on the business execution and supervises the execution of duties by the directors. The Board of Corporate Auditors includes outside auditors and independently audits the execution of duties by the directors, separately from the Board of Directors and the executing organization. This framework is designed to secure the transparency and fairness of decisions made by the Board of Directors. In addition, there is a Governance Committee, which serves as a voluntary advisory body to the Board of Directors. The Governance Committee deliberates on all matters relating to corporate governance, enhancing the effectiveness of governance by the Board of Directors.
Toray Group operates in a broad spectrum of business fields at a global level. Business management and decision-making, as well as oversight, require expertise related to the day-to-day operations of the Group’s worksites. To that end, the composition of the Board of Directors is designed to ensure that members bring a diverse range of perspectives to management oversight and decision-making based on their expertise in the Group's businesses. Meanwhile, outside directors are elected to the Board to ensure transparency and fairness, to ensure oversight from an even broader perspective, and to obtain appropriate managerial advice from a medium- to long-term perspective.
The Board of Corporate Auditors is entirely independent of the Board of Directors. Based on professional expertise in finance, accounting, and law, as well as an understanding of the Group's businesses, the Board of Corporate Auditors exercises oversight over directors' execution of their duties.
Governance Committee consists of the chairman of the Board, president, and all of the outside directors; and an outside director serves as chairperson.

Toray Group's Corporate Governance System
Toray Group's Corporate Governance System

CSR Road Map Targets and Results

Enhance management transparency, continually reflect stakeholder feedback in management, and fulfil responsibilities to explain corporate activities

■KPI
Number of dialogue meetings with stakeholders
■Reporting scope
Toray Group
■Target in fiscal 2018
Eight times

Result in fiscal 2018

8 times

Perform monitoring based on the Basic Policy for Internal Control Systems, in accordance with Japan’s Companies Act

■KPI
Board of Directors' positive assessment of the implementation of the Basic Policy for Internal Control Systems
■Reporting scope
Toray Group
■Target in fiscal 2018
90%

Result in fiscal 2018

94.5%

Expand CSR education throughout the Toray Group to facilitate CSR activities

■KPI
Group companies implementing CSR education
■Reporting scope
Toray Group
■Target in fiscal 2018
100%

Result in fiscal 2018

100%

Looking to the Future

An analysis and assessment of the effectiveness of the Board of Directors in fiscal 2018 concluded that the Board had generally fulfilled its roles and responsibilities, but also called for more active discussion by the Board. In response, concrete measures were implemented for fiscal 2019 and beyond to further enhance the Board’s effectiveness. The assessment of the Board also gathered feedback from directors and auditors, which is being discussed by the Governance Committee and will be used to further enhance the Board’s effectiveness.

Activity Reports

Click below on activity reports for fiscal 2018