Corporate Governance

The Yokogawa Group recognizes that the basic mission of corporate management is to secure sound and sustainable growth, and to build a relationship based on trust with stakeholders, including shareholders. Accordingly, the Group is implementing important measures to enhance corporate governance in order to achieve a healthy and profitable operation.

Speedy decision making and transparency are ensured through deliberations among directors who are well versed in the Group’s business, including completely independent outside directors. Through audits by the corporate auditors, including outside corporate directors, the legality, efficiency, and rationality of the directors’ activities and the appropriateness of their decisions are rigorously examined.

The Yokogawa Group has set forth its basic compliance policies in the Standards of Business Conduct for the Yokogawa Group, and directors take the lead in working to see that business ethics are upheld and embraced throughout the Group. In addition, the Yokogawa Group Internal Control Systems, which are intended in part to help ensure the reliability of financial statements and the propriety of decision making, guarantee the appropriateness and efficiency of Group operations.

The department in charge of internal auditing audits the effectiveness of the internal control systems based on an annual audit plan and reports important matters to the Board of Directors and the corporate auditors.