Corporate Governance

DIC identifies the purpose of corporate governance as being to ensure effective decision making pertaining to its management policy of achieving sustainable corporate growth and expansion through sound and efficient management,

To promote sound and efficient management, in July 2003 DIC introduced a risk management structure—a system of internal controls designed to enhance its compliance program and facilitate the integration of risk management and compliance functions.

With the aim of achieving a higher level of trust on the part of shareholders, customers and other stakeholders and enhancing corporate value, in April 2007 DIC established the Corporate Social Responsibility Committee, which is under the direct supervision of the president, as well including riak management, thereby creating a structure to guide related activities.

Having initially included two attorneys as outside auditors on its Board of Auditors, in June 2008 DIC sought to further strengthen its internal control system by appointing two outside directors to its Board of Directors, thereby ensuring the effectiveness of auditing functions and reinforcing confidence in its ability as a company with a Board of Auditors to respond to the expectations of shareholders.

In June 2009, DIC established the Nomination Committee and the Remuneration Committee as internal committees of the Board of Directors, with the aim of enhancing objectivity in the nomination and selection of, and determining remuneration for, directors and corporate officers. Each of these committees comprises four directors, of which two are outside directors.