Basic View on Corporate Governance
The Group has established a corporate philosophy, the Yokogawa Philosophy, and Standards of Business Conduct for the Yokogawa Group that apply to the entire Group, and strives to have appropriate relationships with all stakeholders as well as aims sustainable corporate growth and increased corporate value over the medium to long term. In addition, based on the philosophy that "a company is a public entity of society," the Group positions answering the trust of all stakeholders, including shareholders, customers, business partners, society, and employees, via sound and sustainable growth, as the basic mission of corporate management.
In order to maximize its corporate value, the Group believes that efforts such as thorough compliance, appropriate risk management, and information disclosure in order to ensure constructive dialogue with shareholders and other stakeholders are important.
The Group formulates and discloses these Yokogawa Corporate Governance Guidelines which serve as the basic policy for continually working on corporate governance in line with the above views.
At the Board of Directors, transparency and the speed of decision-making are improved through deliberations between directors who are well versed in the Company's business and outside directors who maintain a high degree of independence. In addition, audit & supervisory board members, including outside members of audit & supervisory board, shall work to enhance the management audit function by strictly auditing the legality and rationality of the work carried out by directors and the validity of their decision making processes.
Evaluation of the Board of Directors is performed every year in order to further enhance appropriateness of the execution of duties by directors and to improve efficiency through objective analysis and evaluation regarding the effectiveness of the Board of Directors.