Honda considers corporate governance one of the most important management issues. We’re strengthening it on the basis of our fundamental corporate philosophy, aiming to have the global community.including our customers, shareholders and investors.place even greater trust in us as we strive to be a company society wants to exist.
To ensure objective oversight of management, Honda appoints outside directors to its Board of Directors and outside auditors to its Board of Auditors. To strengthen its business execution system in each region and workplace, as well as enhance the supervisory function of the Board of Directors, Honda has introduced an Operating Officer System. To help its Board of Directors respond quickly to changing business environments, as well as to improve the flexibility of its decision-making process, Honda limits directors’ assignments to one year and determines their compensation in accordance with business results.
Based on its fundamental corporate philosophy, Honda has refined its organizational structure. A general manager from the Board of Directors or an Operating Officer is now assigned to each administrative region, business and functional division. The Executive Council deals with important global issues, and regional operating councils deal with important regional management issues. Honda has developed a highly effective and efficient business execution system to respond to the needs of customers and societies with swift, optimal decision-making.
In the area of internal controls, each division is engaged in strengthening compliance and risk management measures. Thorough audits are conducted by the Audit Office to monitor execution.
We issue quarterly reports on financial results and management policy to enhance the trust and respect we earn from shareholders and society. Through these and other measures, we will continue to maintain full disclosure and transparency. |
