Tokyo, April 21, 2003 --- Honda
Motor Co., Ltd. has announced today that it is introducing a
newly revamped corporate governance system in order to further enhance the trust that
Honda has developed with its customers, society, and shareholders, with the objective of
becoming "a company that society wants to exist."
In order to promote future global business expansion, Honda will accelerate the delegation
of authority and the self-reliance of its regional operations, restructure its business
management organization, establish an action guide and renew its compliance and risk
management systems.
 Restructuring of Business Management Organization
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Strengthening of Board of Directors |
- At today's board meeting, a resolution was passed in favor of
a proposal to establish an "Assets and Loan Management Committee"
which will enable agile decision-making in areas such as important capital investment.
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| Strengthening of Board of Auditors |
- Two outside auditors will be appointed at the General Meeting of Shareholders to be
held in June of this year. This will result in two of the four
auditors being outside auditors, thereby enhancing the independence
of the auditors' board.
- An "Auditors Office,"
was established in April, to serve immediately under the Board
of Auditors for the purpose of providing support.
- Supervision of the Board of Auditors will be strengthened in regards to
assignment, remuneration, non-auditing functions and other matters related to
accounting auditors
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Establishment of Action Guide
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- "Honda Conduct Guideline", a guide providing direction concerning consistency
in a wide range of corporate affairs and activities, to be utilized throughout the
Honda organization, was established in April.
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Renewal of Compliance and Risk Management System (April 2003)
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- A system has been
established whereby each Honda organization, under the lead of
the director in charge, will be able to deal with matters of legal
compliance and risk management in a systematic manner while enabling
verification of such situations on a regular basis.
- A Risk Management Officer has been appointed to serve as a director in charge
of overseeing risk management.
- A Compliance Officer has been appointed to serve as director responsible for
legal compliance.
- A Business Ethics Committee, consisting of directors, has been established to
serve as an organization for the deliberation of matters of corporate ethics and
legal compliance.
- An Ethics Proposal Line has been established, which will receive suggestions
concerning corporate ethics and serve as a link to actual execution of
improvements.
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April 21, 2003 