IV.Basic Policy on Internal Control System and other Improvement
1.Internal Control System
We have established the Nippon Express Charter of Conduct as a standard to ensure board members and employees comply with laws, 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 make this charter concrete, we are enacting 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 established is the Compliance Committee, chaired by the President at the 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 the head office and each branch office to ensure thorough compliance by employees.
Furthermore, we have initiated the Nittsu Speak Up, an internal reporting system for the prevention, early detection and correction of legal violation, dishonesty or ethical misconduct by employees.
Moreover, following the enforcement of Corporate Law, the company enacted the Basic Policy Relating to the Establishment of an Internal Control System on May 11, 2006.
2.Risk Management System
We have established the Nippon Express Charter of Conduct as a standard to ensure board members and employees comply with laws, 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 make this charter concrete, we are enacting 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 established is the Compliance Committee, chaired by the President at the 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 the head office and each branch office to ensure thorough compliance by employees.
Furthermore, we have initiated the Nittsu Speak Up, an internal reporting system for the prevention, early detection and correction of legal violation, dishonesty or ethical misconduct by employees.
Moreover, following the enforcement of Corporate Law, the company enacted the Basic Policy Relating to the Establishment of an Internal Control System on May 11, 2006.
3.Internal Audit System
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 to the laws and 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.
Refer to statement of II,Section 2 to review the organization’s policy regarding audits by corporate auditors and accounting audits.
4.Organization of Ensuring Operational Properness by the Entire Group
The entire operations for the Group of Nippon Express 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 the Nittsu Speak Up, an internal reporting system for the prevention, early detection and correction of legal violation, 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.
Internal Audit Division examines, pursuant to the auditing regulations, whether the Group properly performs business operations based on the laws and Articles of Incorporation.
5.Our Basic policy towards the elimination of antisocial forces.
Nippon Express will take firm action to practice social justice and recognizes the company’s social responsibility to not conduct any business with antisocial forces or groups.
Our basic policy states clearly that any relationship with antisocial forces 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 countermeasure controlling division to collect information daily from external specialists to familiarize employees with countermeasures against antisocial forces. To prepare for such an event, we will develop a system for prompt action to guard against funding antisocial forces in close collaboration with the relevant government institutions, corporate lawyers and other external specialists.
Reference ： Structure
