Sustainability | Sustainability Management | TDK Group's MaterialityPursuing Both Delegation of Authority and Internal Controls

Background to Identification as Materiality

Significance for TDK

The pursuit of both delegation of authority and internal controls will lead to the clarification of criteria for business decisions and the utilization of efficient and effective management systems, which in turn will speed up business and realize the acquisition of business chances ahead of market changes. At the same time, since it will also be possible to avoid inappropriate business decisions and operations, this activity can be expected to lead to the enhancement of the TDK Group’s corporate value.

Significance for Society

The avoidance of inappropriate business decisions and operations can be expected to lead to the prevention of adverse impacts on society, such as environmental and human rights issues.

Overview

Themes Ensure speed and transparency in operations, based on the clearly defined roles, authorities and responsibilities of each organization Make management systems of each group company more effective and efficient, aligned with the group’s unified policy Implement appropriate post-merger integration (PMI) for acquired companies
Responsible department Corporate Planning Group
Goals in three years Internal control systems are properly established and operated in subsidiaries, and setups for selecting appropriate human resources as subsidiary directors are established. Also, regarding risks identified through risk management, the departments responsible for dealing with them are clearly assigned. Each subsidiary operates business based on Global Common Regulations (GCRs), the suitability of which is regularly reviewed. Pre- and post- acquisition processes are established and practiced, enabling acquired companies to display synergy and to grow and enhance their value under the TDK Group’s governance.
Action items
  • Clarify selection criteria for subsidiary directors and appoint appropriate human resources accordingly
  • Check operation of the GCRs in each subsidiary
  • Regularly review the GCRs
  • Implement pre-acquisition due diligence by each function
  • Compile pre- and post-acquisition plans and monitor activities to create synergy based on these plans

Department Head Message

Corporate Planning Group, Corporate Strategy HQ

Shuichi Hashiyama

We will aim to enhance the corporate value of the TDK Group through the realization of empowerment and transparency, utilizing the strengths of each Group company and pooling the energy of the entire Group. The current issue is that there is a gap in the degree of maturity of internal controls among Group divisions. To overcome this issue, over the next three years, with the cooperation of HQ functions, we will disseminate the global common regulations. In addition, we will raise the level of internal control in each tier of the Group by clarifying rules for the selection of directors in subsidiaries and implementing education for subsidiary directors and candidates.

Recommendations

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