ESG
-GOVERNANCE-

Governance Initiatives

Corporate Governance

For information about ARATA’s corporate governance, please visit this site.

Governance Function Structure

Structure of Main Organizations

Board of Directors
  • Total
    13
  • Inside
    directors
    7
  • Outside
    directors
    3 
  • Audit & Supervisory Committee members
    3（3 Outside）
  • Chairman
    Executive Chairman
The Board of Directors meets once a month, in principle.
In addition to those items that are required by law, the directors work on important issues related to management and supervise the execution of business.
Audit＆Supervisory
Committee
  • Total
    3
  • Inside directors
    0
  • Outside Auditors
    3
  • Chairman
    Outside directors
The Audit & Supervisory Committee meets, in principle, at least once a month. All Committee members attend Board of Directors meetings to audit the state of management and execution of business operations. In addition, the Audit and Supervisory Committee Members and the Executive Secretary of the Audit and Supervisory Committee attend management meetings and other important meetings, and receive reports from the Internal Audit Office on audits of operations and share issues.
Nomination and
Remuneration
Committee
  • Total
    7 
  • Inside directors
    1
  • Outside directors
    6
  • Outside Auditors
    3
  • Chairman
    Executive Chairman
The Nomination and Compensation Committee was established as a voluntary advisory body to the Board of Directors in order to strengthen objectivity and accountability in decision making regarding nomination and compensation of directors and others, and to further enhance the corporate governance system by examining succession plans, etc.
ESG Committee
  • Total
    16
  • In-house

    Directors
    5

    Executive officers & others　5

  • Outside 
    directors
    3 
  • Audit & Supervisory Committee members
    3（3 Outside）
  • Chairman
    Representative Director
    and
    President
ESG Committee oversees all ESG activities and　maintains the ESG structure and compliance system for the entire Group.
The ESG Committee, in principle, meets at least once every 2 months.


Evaluating the Effectiveness of the Board of Directors

The Board of Directors analyzes and evaluates itself on general effectiveness so that corporate governance can be more effectively.
The Board gauges its contribution to the Company to uncover problems and to make improvements. The Board discusses the results of their evaluation at the next Board of Directors meeting and determines where it needs to improve.
Evaluation Criteria 1. The Board's operational status 2. The Board's role and supervisory function 3. Respect for the opinions of investors and other stakeholders 4. Director support system 5. Contribution to and participation in Company affairs 6. Progress on issues raised in the previous year's evaluation

Strengthening Governance

We are working to strengthen governance by establishing various subcommittees with a view to ensuring sound, accurate, and transparent management.

Strengthening ERM

We examined potential future risks arising from changes in government, the economy, and markets, identifying 225 major and minor risks and discussing countermeasures by disclosing them to the assigned departments for each function. We consider these risks in terms of seriousness and priority when formulating action plans.

Information Management

We will achieve rapid response to risk by building a system that can centrally manage information regarding various companywide phenomena.

Information Leak Countermeasures

We are implementing technical countermeasures, preparing manuals, and ensuring that the rules are observed in order to cultivate a corporate culture that will prevent information leaks through appropriate management of company secrets and personal information.

Education and Training

As basic education on governance for development of the personnel who support our strategies, we have introduced e-learning programs for all of the Company’s managers, aiming to increase the individual knowledge levels of managers.
In addition, we conduct regular harassment training to ensure that employees and organizations are "Tough" and "Right," and to create an environment in which they can work "Active."

Health Promotion

We are working to promote health among employees, such as enhancing the content of health checks and implementing a system for all employees to receive Company-subsidized cancer screening for lung, stomach, breast, and cervical cancers.



Compliance

With regard to compliance, we have presented our stance on legal compliance in the "ARATA Guidelines for Corporate Behavior" and are working to strengthen compliance throughout the Group.
We have established the Legal Affairs Department within The Legal & PR/IR & ESG Department as a system for ensuring legal compliance. We are working to raise compliance awareness through cross-organizational activities by conducting compliance training, checking contracts, and consulting on business laws as a company-wide legal contact point.

Whistleblower hotline

We have established a whistle-blower hotline that allows employees who are working for us (officers, employees, and temporary workers), retirees, and companies with whom we have business relationships domestically to consult and report in accordance with the Whistleblower Protection Act.
Information received through consultation or reporting will be handled with strict confidentiality and We will not put at a disadvantage because of the consultation or reporting.
We are working to strengthen compliance management by early detection and correction of improper conduct through consultation and reporting of organizational or personal violations of laws and regulations.

ARATA Hotline

For those working at the Company, we have established 2 contact points: an internal (internal audit office) and an external (corporate lawyer). We distribute the "ARATA Hotline Manual" and make it known to them.

Contact point for business partners

Consultations and reports from companies that have business relationships with us in Japan are accepted by mail to the following address.
East 21 Tower, 6-3-2 Toyo, Koto-ku 135-0016
To the contact person for reporting, ARATA CORPORATION.

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