Ensuring Effective Governance
Reason for Priority
Corporate governance is the cornerstone of business activities. In order to ensure fair and transparent management, businesses must continue to improve on the system of governance. In addition, the governing body should forecast and respond to the various ever-changing risks and opportunities from a medium- to long-term perspective. As such, it is essential for us to respond to the various requests of stakeholders.
Strengthening governance is one of the important challenges for a company, and it is necessary to build a corporate governance organization that ensures transparency and discipline to become a company that is trusted not only by investors but also by diverse stakeholders.
Nikon has implemented initiatives aimed at strengthening governance, including transitioning to a company with an Audit and Supervisory Committee, establishing the Compensation Committee and Nominating Committee, and increasing the number of external directors on the Board of Directors to more than one-third.
In the fiscal year ending March 31, 2021, we will continue to enhance corporate governance, including officially launching the President's succession plan, and more.
Director and Chairman of the Board
Main initiatives and results in the fiscal year ended March 31, 2020
Formulating succession plan for president by the Nominating Committee
In order to ensure that decisions on the election and removal of directors and officers are transparent and objective, Nikon has established the Nominating Committee in May 2019. The Nominating Committee acts as an advisory body for the Board of Directors, a majority of the Committee comprises external directors, and the Committee is chaired by an external director.
In the year ended on March 31, 2020, the Committee has established the criteria for the election and removal of the chief executive officer, president, and directors as well as the succession plan for the president.
Establishing an information security management system
The Nikon Group is committed to establishing an advanced information security management system as it believes the respect of privacy as well as lawful and appropriate handling of personal information are important social responsibilities.
The EU General Data Protection Regulation (GDPR) which stipulates legal requirements concerning the handling of personal information came into effect in May 2018. Nikon has previously started developing an information security management system in compliance with the same regulation. In the year ended March 31, 2020, we had zero GDPR violations are accompanied by fines.
In recent years, the same regulation is being developed in countries and regions outside of Europe. Going forward, we will continue to conduct employee education and implement adjustment to the incident handling process in striving to handle personal information legally and appropriately.
Nikon Sustainability Report
For more details, please see the Nikon Sustainability Report.
In cooperation with the international community, Nikon conducts control of EXPORT.