YKK AP

Corporate Governance

As we inherit the philosophy of the “Cycle of Goodness,” we strive to enhance our corporate governance system in an effort to further enrich our corporate value. Our Company’s basic approach to corporate governance involves several organizations and systems. The Board of Directors serves to make decisions on important matters, such as the Company's management policy, and serves as an oversight function. The Audit & Supervisory Board, meanwhile, is the Company's auditing organization. The final component of the Company's basic approach is the Operating Officer System, a framework that helps the Company promote the execution of business and operations.

Our system ensures that the execution of duties by the Directors of the Company is in line with laws, regulations and the Articles of Incorporation.

System concerning the execution of duties by Directors of the Company and the Directors of its subsidiary companies

(1) System for ensuring the execution of duties by the Directors is in line with laws, regulations, and the Articles of Incorporation, and other systems to ensure appropriate business operations at the Company. The Directors adhere to the Board of Directors regulations, comply with regulations pertaining to the performance of Director duties, and execute operations appropriately in accordance with the principle of the separation of duties. The Company has established a Compliance Committee to maintain a compliance system for the Company and its subsidiary companies. Additionally, a Compliance Director has been appointed, who reports to the Company's other Directors and the Audit & Supervisory Board Members on the development of the compliance structure and compliance with laws, regulations, and the Articles of Incorporation, among other items. The Company's Directors regularly participate in compliance training programs by lawyers and other professionals. They also submit written oaths pledging to comply with laws and regulations in performing their duties as Directors.

(2) System for storing and managing information related to the execution of duties by Directors of the Company. The Company, in line with its document control regulations, information security regulations, and other internal regulations, sets specific periods for retaining important documents (including electronic records) and implements appropriate document control.

(3) Regulations and other systems for addressing the risk of losses by the Company and its subsidiary companies The Company appointed its Chief Risk Management Officer (CRO) and established its Quality Committee, Foreign Trade Control Committee, Crisis Management Committee, Information Security Committee, and Technical Asset Management Committee to promote risk management at YKK AP. The CRO and the Committees continue to develop and apply appropriate regulations.

(4) System for ensuring that the execution of duties by Directors of the Company and its subsidiary companies is efficient and effective The Company introduced the Operating Officer System to ensure the faster execution of business and operations via the separation of management and execution. While Directors devote their energies toward optimizing operations across the Company, Operating Officers assume responsibility for and authority over executing individual businesses and operations in accordance with the policies that the Board of Directors has resolved. The Company established the Brand Management Committee to discuss and draft important policies from a professional perspective. The Company established its Management Strategy Meeting to improve the efficiency of deliberations by the Board of Directors. The Directors hold thorough discussions on important matters and establish an Investment Committee for particularly important investment cases before reaching official resolutions. The Company established its Environmental Policy Board Committee to determine environmental policies and measures for the Company and oversee the promotion of environmental policies. In addition, Business Execution Division of the Environment Committee promotes policies and manages their progress.

Compliance

Maintaining and strengthening the compliance system under the philosophy of the “Cycle of Goodness”

The YKK Group considers compliance to be responding to societal demands, and that in addition to abiding by laws, regulations, and internal rules, compliance represents conforming with social norms required when conducting business activities. YKK AP has established a Compliance Promotion Office to maintain a compliance system based on the YKK Global Criteria of Compliance (YGCC). In addition, we hand out the YKK Group Compliance Book to all employees as a tool to facilitate greater understanding, awareness and receptiveness of the YKK Group Code of Business Conduct, which is used across the world, and to encourage behavioral changes that stem from attitude transformations. In FY 2018, we were recognized as a company whose employees actively take the Business Compliance test and awarded as an outstanding test-taking organization by the organizers.

Risk management

Improving the way we respond to disaster risks by moving a portion of our headquarters’ function

Prompted by the 2011 Great East Japan Earthquake, and in light of BCP strategies, we moved a portion of our headquarters’ function to Kurobe, Toyama. In April 2016, we completed the transfer of over 200 employees, largely from management divisions such as the Human Resources Department, Accounting Department and Intellectual Property Department. Our aim for moving departments that were concentrated in Tokyo to Kurobe was to mitigate risks in the event of a disaster and also to increase cooperation and communication between different divisions to further enhance technological prowess, development capabilities and product appeal.

Procurement guidelines

Fulfilling our social responsibilities throughout our supply chain with our procurement policy

YKK Group Procurement Policy

Ever since YKK's founding, we have based our business activities on the conviction, under the "Cycle of Goodness" YKK Philosophy, that an enterprise is an important member of society, that it must thereby coexist with other elements of society, and the value of its existence will be recognized by the benefits it shares with society. The belief behind this is that "No one prospers without rendering benefit to others." We carry out business activities with the aim of bringing mutual prosperity, and our intent is that innovative ideas and inventions will result in business expansion for the YKK Group, which in turn would bring prosperity to customers and business partners, and thus benefit all society. This is none other than our execution of corporate social responsibility.

Whistleblowing System

The YKK Group introduced the YKK Group whistleblowing system to establish a structure that enables employees and others to anonymously consult and report on workplace environments, working hours, or cases of internal corruption. We have established internal and external hotlines for personnel to consult on such issues as harassment, concerns, and health.