Internal control
Governance
Internal control promotion system
The Idemitsu Group's Board of Directors has resolved the basic policy of the internal control system as a system to ensure the appropriateness of business operations. Furthermore, the Board of Directors confirms whether the internal control system is properly constructed and operated, and reviews it to ensure its effectiveness.
Based on the above resolution of the Board of Directors, the executive division has established a system to ensure that the execution of duties by directors and employees complies with compliance, and to ensure that risk management functions effectively.
*For the basic policy regarding the internal control system in FY2023, please refer to the Corporate Governance Report IV. 1. Basic concept regarding the internal control system and its development status.
Compliance activities
Based on the Compliance Regulations, we have established a Risk Management and Compliance Committee to monitor appropriate responses to cases of compliance concerns reported to whistleblowing centers, etc., and to promote compliance activities within the Group.
Risk management activities
Based on the "Basic Guidelines for Risk Management," we promote risk management activities through a three-line defense system. In addition, we have established a Risk and Compliance Committee, which selects important risks and takes countermeasures, and whose chairperson reports or reports to the Risk Management Committee.
Risk and Compliance Committee
This committee deliberates on issues such as the selection of important risks for the entire Group, countermeasures against them, understanding of new risks, and responses to suspected compliance violations and disciplinary actions. The committee is chaired by the officer in charge of general affairs and holds regular committee meetings every quarter.
Business divisions/affiliated companies (1st line of defense): As the first line, effectively function one's "self-management" and promote daily improvements.
Corporate Division (2nd Defense Line): In addition to ensuring that one's own "self-management" functions effectively, the second line monitors the status of the first line's "self-management" in specialized areas that handle corporate functions, and supports the maintenance and improvement of its effectiveness.
Internal Audit Office (3rd Line of Defense): Evaluate the status of "self-management" in the first and second lines from an independent and objective standpoint.
●Internal control promotion system diagram
Initiatives
Main initiatives in 2022
Promoting the introduction of a self-inspection web system
Regarding the self-inspections that were previously implemented, in order to centralize the inspection results and improvement details and increase the effectiveness of self-management, the "self-inspection web system" has been implemented at the head office, Refinery (Complex), branch offices, and some related offices. Implementation and operation in the company
Internal control support for affiliated companies
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In response to the discovery of inappropriate acts related to product testing at a major affiliate company in May 2022, we conducted a group-wide audit on "initiatives to prevent deficiencies and inappropriate acts in quality assurance."
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Completed system development for affiliated companies with over 300 employees in response to the revised Whistleblower Protection Act aimed at protecting whistleblowers, which will come into effect on June 1, 2022.
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Expanded dispatch Audit & Supervisory Board Member to domestic and overseas affiliates to over 60 companies