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, responsible department, goals, KPIs, and progress)

Themes Responsible
department 		Goals in 3 years Action items KPIs Medium-term target*
(Fiscal 2022-2024) 		Progress of
Fiscal 2022 		Progress of
Fiscal 2023
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 Defined the competencies that are required of Group officers, including the officers at our subsidiaries.
Through compliance checks, selected the officers at our subsidiaries.
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.
  • Check operation of the GCRs in each subsidiary
  • Regularly review the GCRs
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.
  • Implement pre-acquisition due diligence by each function
  • Compile pre- and post-acquisition plans and monitor activities to create synergy based on these plans
 - - - Did due diligence prior to acquisitions based on each corporate function.
Based on a list consolidating the items with which companies who are newly part of the Group must comply with the grace periods for coming into compliance, carried out PMI activities of our US subsidiary acquired in February.

*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

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.