Internal control
Governance
Internal control promotion system
Idemitsu Kosan's Board of Directors has resolved the basic policy for the internal control system as a system to ensure the appropriateness of business operations. Furthermore, Board of Directors checks whether the internal control system is properly established and operated, and reviews it to ensure its effectiveness.
Based on the above-mentioned Board of Directors resolution, the executive department ensures that the execution of duties by directors and employees complies with compliance and creates a system for effective risk management.
*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.
Risk management activities
Based on the "Basic Guidelines for Risk Management," we are promoting risk management activities through a three-line system. Furthermore, the Risk Management and Compliance Committee selects important risks and takes measures, and the chairman reports to the Risk Management Committee.
Compliance activities
Based on the "Compliance Regulations," we have established Risk Management and Compliance Committee. The committee monitors whether cases of compliance concerns reported through the hotlines are being properly addressed, and promotes compliance activities within the Group.
Risk Management and Compliance Committee
The committee selects important risks for the entire Group, discusses countermeasures for those risks, identifies new risks, and discusses matters related to responses to suspected compliance violations and disciplinary actions. Chaired by the Officer in charge of general affairs, the committee meets quarterly on a regular basis.
Business Departments and affiliated companies (1st line): Effectively implement your own "self-management" and promote daily improvements
Corporate Departments (2nd Line): Ensure that one's own "self-management" functions effectively, while also monitoring the status of "self-management" of the first line in specialized areas responsible for corporate functions, and support the maintenance and improvement of its effectiveness.
Internal Audit Department (3rd line): Evaluate the status of "self-management" of the 1st and 2nd lines from an independent and objective standpoint
●Internal control promotion system diagram
Initiatives
Main internal control support in FY2023
・Implementing initiatives to raise awareness of the reporting system both within and outside the Group
・Redoubled efforts to ensure that risk cases are reported in accordance with the "Crisis Response Regulations," and implemented alerts in response to cases that have become apparent.
・Conducting wide-ranging audits across the Group on the themes of "quality assurance" and "compliance with antitrust laws," which can have a significant impact on management
・Implement training to establish operation of the affiliated company database system after its construction, and to promote understanding of regulations related to the management of affiliated companies
・Full-scale rollout of the "Self-Inspection Web System," a tool for enhancing the PDCA cycle of self-management through self-inspection, across the Group