As a company based on the principles to being a company that is trusted by society, Seiko Holdings Corporation positions as a core business challenge compliance with all laws and regulations, implementation of management transparency and fairness, and honoring social ethics-and to realize these goals by striving to apply and reinforce its corporate governance framework.

Five corporate auditors, of which three are external corporate auditors, hold periodic Board of Auditors meetings to determine auditing policy and divide auditing responsibilities. Each corporate auditor reports on the implementation of auditing practices and auditing results to the Board. Corporate officers, as well as accounting auditors, report to the Board regarding the status of work execution and may be asked to provide additional explanation to the Board when necessary.

This Department engages in various programs to ensure the proper internal auditing practices as well as the compliance framework of Seiko Holdings Corporation and individual operating companies. It is also responsible for the establishment of an in-house regulatory system for the Group as a whole, and inspects, evaluates and improves upon the system and its operations.

Seiko Holdings Corporation established the Corporate Ethics Committee as a framework to ensure corporate ethics compliance and to promote fair and proper corporate activities. It engages in initiatives to raise corporate ethics awareness and ensure compliance in corporate officers as well as employees, and for the adoption of business practices that are fair and equitable.

Under the risk management protocols approved by the Board of Directors, the Risk Management Committee develops, upgrades, and tracks our risk management process, which includes the identification, analyses, assessment and monitoring of risks.

Seiko Holdings Corporation retains KPMG AZSA & Co. as its Accounting Auditor.