Corporate Governance

Our basic policy of the internal control system is to base our corporate activities on legal compliance and compliance with social ethics. Specifically, we adopt a system by which the Board of Auditors, Compliance Committee, General and Legal Affairs Department and the Auditing Department supervise if relevant laws and regulations have been complied, on the very basic internal understanding of the Code of Corporate Ethics. Additionally, we have established the Auditing Council to prepare appropriate financial statements while aiming to comply with all laws and regulations, to safeguard the company's assets, and to carry out our business activities efficiently. We have also created the Risk Management Committee, establishing a system to conduct research on all management risks within the company group and to conduct prior check of importance and necessity of the outstanding issue. Furthermore, we opened a window for the internal communication in order to grasp and improve various other issues of problems to accomplish further improvement and reinforcement of the internal control system.

CSR Promotion, Compliance System and Risk Management System

CSR Promotion System

We position CSR activities as an important managerial issue and pursue promotion of CSR by setting 4 basic principles.
With regard to the CSR promotion system, we created a CSR Committee in order to aim at the sustainable development of society and our corporate group by performing our accountability in response to explicit as well as implicit requests from our stakeholders.
The CSR Committee, which is composed of the President and CEO as the chairman and executive officers of each headquarters as members, implements various measures in tie-up with the Compliance Committee and the Risk Management Committee, being conscious of how to respond to requirements from society. In order to promote the measures regarding CSR, a person in charge of CSR has been assigned in each business division and office to assume the job responsibility.

Compliance System

With regard to the compliance system, along with establishment of the Corporate Code of Ethics and the internal reporting system, we have created the Compliance Committee to strengthen its commitment.
As an advisory organ of the Board of Directors, the Compliance Committee is composed of the President and CEO as the chairman and external members (lawyers and external auditors). It plans and implements various measures concerning compliance such as educational training and improvement and reinforcement of the information control system.
As a system to aggressively implement such measures regarding compliance, a person in charge of compliance has been assigned at each business division and office to assume the job responsibility.

Risk Management System

With regard to the management system, the Risk Management Committee has been created to grasp and manage the risks of the whole company in a comprehensive manner. In furtherance, the Internal Auditing Department conducts auditing of the status of risk management of each headquarters together with auditors to report the results to the Board of Directors and the Risk Management Committee, also feeding back the results to the Buisiness Management Headquarters to serve for the correction or preparation of the basis for further measures.
As an advisory organ of the Board of Directors, the Risk Management Committee, composed of President and CEO as the chairman and external members (lawyers and CPA), not only verifies status of risk management, but also plans and implements educational training and others in order to realize reduction and prevention of risk.

Internal Auditing System

With regard to the internal auditing system, we have formed the Auditing Department out of the independent internal auditing units from each operations unit. In the past, the Auditing Department was aiming to strengthen its capabilities by working under the direct supervision of the president, but we have recently set up a new Audit Council with the aim of strengthening the department's capacities even further. Based on our basic internal control system policies, we are verifying and evaluating the efficacy of, as well as making improvements in, the new system.

We promote reinforcement of our information security system in order to properly manage corporate information as well as private information of apartment owners and tenants.
With regard to private information, the executive officer in charge of the Buisiness Management Headquarters as supervisor of the private information, together with the Compliance Committee, make proper use and control of the information in accordance with relevant laws and regulations including the Private Information Protection Law, having prepared a system which enable us to respond quickly in case of an accident.