IV.Internal Control Systems

We have established the Nippon Express Charter of Conduct as a standard to ensure board members and employees comply with laws, the Articles of Incorporation and other internal regulations, as well as socially accepted norms. In this charter, we clarify the roles and responsibilities that must be fulfilled by employees.
To give this charter teeth, we have enacted a set of Compliance Regulations. It serves as a guideline for all employees to comply with laws and guarantee ethical behavior. One concrete measure the Company has taken is the establishment of the Compliance Committee, chaired by the President at the head office, for the implementation of compliance across the Company. At the same time, we have appointed staff members in charge of compliance as well as compliance promoters at the head office and each branch office to ensure thorough compliance by employees.
The Company also initiated “Nittsu Speak Up,” an internal reporting system for the prevention, early detection and correction of legal violations, dishonesty or ethical misconduct by employees.
Moreover, following the enforcement of the Companies Act, the Company enacted the Basic Policy Relating to the Establishment of an Internal Control System on May 11, 2006.

The Company has created a series of "Crisis Management Guidelines" to prevent risks that would adversely affect business operations and, in times of crisis, when the Company is exposed, to facilitate risk management in the most rapid and concise fashion. In addition, we have established a "Board of Risk Management" to develop and implement risk management systems.

Nippon Express has set up the Audit Division at the head office and placed staff members in charge of auditing at each business division and branch office. The Internal Audit Division, pursuant to audit regulations, conducts onsite audits and paper audits to examine whether employees perform their duties in accordance with laws and the Articles of Incorporation, and then report to the corporate auditors accordingly. Moreover, the Internal Audit Division provides instructions, advice, and recommendations in accordance with the auditing regulations in order to prevent the risk of losses caused by management.
To review the organization’s policy regarding audits by corporate auditors and accounting audits, please refer to II. Organizational Structures Related to Managerial Decision-making, Implementation and Supervision, and Additional Corporate Governance Systems.

All operations for the Nippon Express Group are conducted under the Nittsu Group Compliance Guideline. Business activities of the Group are sound, transparent, and are based on laws, socially accepted morals and ethics as well as Internal Regulations.
The company also initiated “Nittsu Speak Up,” an internal reporting system for the prevention, early detection and correction of legal violations, dishonesty, or ethical misconduct by the Group.
Corporate auditors conduct inspections of the Group in terms of consolidated management and operational enforcement relating to consolidated statements.
The Internal Audit Division examines, pursuant to the auditing regulations, whether the Group properly performs business operations based on laws and the Articles of Incorporation.

Internal control systems function as summarily shown in the "Corporate Governance Organization Chart."

Nippon Express will take firm action to practice social justice and recognizes the Company’s social responsibility to not conduct any business with forces or groups that cause societal harm. Our basic policy states clearly that any relationship with forces harmful to society is prohibited as described in the Nippon Express Charter of Conduct and the Compliance Regulations. We have established an educational system to have executive officers and employees comply with the basic policy.
In addition, we established an internal countermeasures division to collect information daily from outside specialists to familiarize employees with countermeasures against forces harmful to society. To prepare for such contingencies, we will develop a system for prompt action to guard against funding forces harmful to society, in close collaboration with the relevant government institutions, corporate lawyers, and other outside specialists.

• Frequently Asked Questions about IR (FAQ)

Related Information

• I.Basic Policy on Corporate Governance and Basic Information on Capital Structure, Corporate Attributes and Other Matters
• II.Organizational Structures Related to Managerial Decision-making, Implementation and Supervision, and Additional Corporate Governance Systems
• III.Implementation of Measures Regarding Shareholders and Other Stakeholders
• V.Other