News Releases 2003

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April 21, 2003

Honda to Establish New Corporate Governance System

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, which 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 Strengthening of Board of Directors

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.

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 bolstered in regards to the assignment, remuneration, non-auditing functions and other matters related to accounting auditors

Establishment of Action Guide

  • “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.

Renewal of Compliance and Risk Management System (April 2003)

  • 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 a director responsible for legal compliance.
  • A Business Ethics Committee, consisting of directors, has been established to serve as an organization to deliberate 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.