(As of August 2019)
Ongoing Development of the Internal Control System
In May 2006, the Board of Directors passed a resolution to adopt
a basic policy related to the development of systems necessary to
ensure the properness of business (Basic Policy for Internal Control),
which was partially amended in August 2019. This amended policy
forms the basis for Sharp’s ongoing development and implementation
of its internal control system. The Internal Control Committee,
which is an advisory body to the Board of Directors, deliberates on
basic policies regarding internal controls and internal audits, as well as the development and implementation status of various measures related to the internal control system, then
make a decision about what to report on or discuss with the Board of Directors. The department promoting
internal controls on a company-wide basis oversees the internal
controls of the business execution departments. Meanwhile the
Internal Audit Division makes concrete proposals on how to improve
business operations and reinforces internal controls by checking
the validity of business execution as well as the appropriateness
and efficiency of management.
To enhance compliance throughout the group, Sharp introduced
the Sharp Group Charter of Corporate Behavior, a set of principles
to guide corporate behavior, and the Sharp Code of Conduct,
which clarifies the conduct expected of all directors, corporate auditors,
executive officers and employees of Sharp. Sharp ensures
that these guidelines are thoroughly observed by posting them
on the Web and carrying out position-specific training programs.
Based on the basic rules of compliance, Sharp is also developing a
company-wide compliance promotion system. Meanwhile, Sharp is
implementing thorough measures to prevent compliance breaches
by informing a Sharp Group Compliance Guidebook on website to all employees
and implementing training based on the guidebook.
In order to comprehensively and systematically deal with diverse
business risk, Sharp formulated the Business Risk Management
Guideline to achieve prevention of and swift responses to risk.