We are striving to enhance our corporate governance to ensure we continue to be a company that is trusted by our customers and society.
Suntory Group Corporate Governance
Suntory Group is introducing a pure holding-company system that separates "group management" and "business operations." We maintain our good relationships with all stakeholders including local communities, customers, and business partners, while striving to enhance our corporate governance, so that we may fulfill our social responsibilities as a company.
Boards Responsible for Group Management
Suntory Holdings' Board of Directors is made up of 9 directors, including 1 outside director (as of April 2018). The Board of Directors engages in concrete discussions, debates and makes decisions regarding management issues of the entire Group and also performs an auditing function of the business administration practiced by all Group companies. The adoption of the Executive Officer system helped to separate the business administration decision-making process from the execution of business operations and to make decision-making process more agile.
The Management Auditing System
Suntory Holdings' Board of Auditors is made up of four auditors, including two external auditors (as of April 2018). It audits the execution status of business operations as well as the status of the internal control system. Board of Auditors Office was established to aid the audits performed by the Board of Auditors. In addition, Suntory Group has established a Group Auditing Department that acts as an internal auditing division that audits and inspects the execution status of business operations of all Group companies. The external auditors also audit accounts, verifying the appropriateness and legality of accounts and the internal accounting systems from an objective perspective.
Corporate governance structure
Strengthening Internal Control Systems
We are aiming to build a more effective governance structure by strengthening efforts such as compliance, information management, and risk management based on the Basic Policy on Internal Control Systems enacted by Suntory Holdings' Board of Directors.
Suntory Beverage & Food Ltd.'s Corporate Governance
Suntory Beverage & Food Ltd., which is listed on the first section of the Tokyo Stock Exchange, is an audit and supervisory committee company. This structure was established for the purpose of improving the effectiveness of auditing and supervision through audits by directors who are committee members approved by the Board of Directors in addition to introducing audits that utilize an internal auditing division to facilitate more highly-transparent governance. Three of the nine directors (including directors who are members of the auditing committee) that make up the Board of Directors are external directors (as of April 2018). Furthermore, Suntory Beverage & Food has also stipulated the ability to appoint directors for some or all decisions necessary for executing operations with approval at the Board of Directors Meeting. This measure realizes management strategy and achieves management indicators set as goals by conducting more comprehensive and practical deliberation such as debate about management strategy, medium- and long-term plans, and management challenges. It is also for the purpose of allowing for faster decision-making while enhancing supervision functions at the Board of Directors Meeting through decision-making based on the management committee and internal rules for executing each operation. We are also release compliance status of the corporate governance code on our homepage.