Sustainability | Sustainability Management | TDK Group's MaterialityPursuing Both Delegation of Authority and Internal Controls
- Background to Identification as Materiality
- Overview (Themes, responsible department, goals, KPIs, and progress)
- Department Head Messages
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, responsible department, goals, KPIs, and progress)
|Themes||Responsible department||Goals in 3 years||Action items||KPIs||
|Progress of Fiscal 2022|
|Ensure speed and transparency in operations, based on the clearly defined roles, authorities and responsibilities of each organization||Corporate Planning Group||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.||Clarify selection criteria for subsidiary directors and appoint appropriate human resources accordingly||Clarification of criteria for selection of subsidiary officers and implementation of officer selection based on these criteria||Ensure that all subsidiary officer candidates recommended by responsible sections conform with selection criteria||Selected subsidiary officers after compliance checks|
|Make management systems of each group company more effective and efficient, aligned with the group’s unified policy||Corporate Planning Group||Each subsidiary operates business based on Global Common Regulations (GCRs), the suitability of which is regularly reviewed.||
|Implement appropriate post-merger integration (PMI) for acquired companies||Corporate Planning Group||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.||
*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).
Department Head Message
Corporate Planning Group, Corporate Strategy HQ
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.