Toagosei aims to maintain the public’s trust through the fulfillment of its social responsibilities as a chemical manufacturer, and achieve sustainable growth as a Group The corporate ethical stance of the Toagosei Group is encapsulated in our slogan: “Sharing more happiness with more people through the chemical business.” In line with the spirit of this slogan, we carry out CSR activities on a comprehensive Group-wide basis. To comprehensively monitor the implementation status of CSR activities in each Group company and in each business, and to improve those activities, the Toagosei Group has established the Group CSR Committee, which rigorously promotes all Group CSR activities by conducting routine audits. Corporate Social Responsibility Management focused on the interests of stakeholders At Toagosei, we pursue our business operations with a strong emphasis on relationships with our customers, shareholders, employees, the communities in which we operate, and all other stakeholders. In all aspects of business we aim to realize an optimal balance between profitability, social contribution, and protection of the environment. Systems for internal control and corporate governance ● Introduction of executive officer system ● Participation in the management by outside directors ● Establishment of Internal Control Section ● Establishment of Corporate Auditor Section to assist corporate auditors Toagosei has created effective systems for internal control and corporate governance to enable fast and precise response to dramatic changes in the business environment, and to ensure fair and transparent management. Measures taken thus far include the following. ● The reviewing and revision of the Toagosei Group Code of Conduct and the Toagosei Group Manual of Behavioral Standards ● Monitoring by the Compliance Committee ● Installation of the whistleblower hotline systems for reporting suspected instances of illegal or unethical conduct ● Regular training of new employees, mid-career employees, and new managerial staff Rigorous compliance We have established an in-house system to ensure a continued focus on compliance, and are conducting compliance educational programs. Advice Control Legal Counselors, Tax accountants Internal Control Section General Meeting of Stockholders Business Execution Departments & Group Companies Appointment Appointment Appointment Audit Audit Collaboration Selection Appointment Accounting Auditors Direction & Supervision Compliance Committee Management Committee (Senior) Executive Ocers Representative Directors Board of Directors Corporate Auditors Corporate Governance System 23 Annual Report 2013