[ Back | Next ]

In the interest of promoting management that is both responsive and highly transparent, the JFE Group has made great efforts to strengthen our systems of corporate governance and compliance, so that all officers and employees adhere to the highest ethical standards in the execution of their duties.

To construct operational and executive systems that are capable of carrying out the most appropriate strategies for each field in which we do business, we, at the JFE Group, have adopted a holding company structure featuring separate operating companies in each business field.
  As the holding company, JFE Holdings is a streamlined Group head office, responsible for Group-wide strategic functions, risk management and external accountability.
  To ensure swift decision-making through mutual agreement, we have established management committees at the holding company and the major operating companies of the Group. We also employ corporate officer systems, assigning a clear division of management decision-making and operational executive rights and responsibilities, in an effort to create an organizational structure that encourages the prompt and flexible development of businesses and delegates to operating companies the authority to monitor market trends, formulate strategies and policies that conform to the needs of their customers, and make the necessary investment decisions. At the same time, in the areas requiring a Group-wide response—i.e., technology development, IT, environmental and other common issues—Group-wide committee meetings provide a forum for discussion. In this way, we strive to attain management efficiency and create synergies from the Group working as a whole.
  Regarding internal governance, JFE Holdings, its operating companies and major Group companies have internal auditing organizations which provide mechanisms for Group-wide internal audits, share information with corporate auditors and implement monitoring and internal controls for business operations.

We believe compliance is an essential part of our efforts to make a positive contribution to society. We consider respect for the law to be a matter of course, and as good corporate citizens, all our officers and employees must be fully committed to corporate ethics, mindful of our wide-ranging connections to the environment, safety, human rights and culture.
  Based on this awareness, to translate this fundamental respect for compliance into reality, the JFE Group has formed the JFE Group Compliance Committee and drawn up the JFE Group Standards of Business Conduct. In addition, each of our operating companies is making efforts to introduce a “corporate ethics hotline,” as a conduit for communicating important compliance-related matters directly to top management.

 Management Organization and Compliance Mechanism
Management Organization and Compliance Mechanism