The Shiseido Group including the Company sets out “BEAUTY INNOVATIONS FOR A BETTER WORLD” as THE SHISEIDO PHILOSOPHY and defines corporate governance as the “platform to realize sustainable growth by fulfilling the corporate mission.”
The Company strives to maximize medium-to-long-term corporate and shareholder value by implementing and reinforcing corporate governance to maintain and improve management transparency, fairness, and speed, and by engaging in dialogue with all stakeholders, from consumers, business partners, employees, and shareholders to society and the earth. At the same time, by fulfilling its responsibilities as a public entity of society, the Company works to optimize the value it delivers to respective stakeholders.
Shiseido’s Board of Directors is structured to be small for quick decision-making. It is composed of seven members including three external directors and presided by the President and CEO. The Board of Directors meets approximately once a month to discuss all significant matters.
The Company has adopted an executive officer system (including current corporate officers), placing its business execution function under the control of executive officers and separating it from the supervisory function, the responsibility of the Board of Directors. On top of that, we have the Executive Committee, which discusses important matters related to business execution from various aspects before final decisions are made by the President and CEO, and the Global Leadership Committee, which deliberates business plans, medium-to-long-term strategies, and other matters. Both committees are chaired by the President and CEO.
At the same time, we are working to delegate authority to executive officers, clarify their responsibilities, and accelerate business execution. Executive officers make decisions regarding the execution of business in their areas of responsibility and deliberate matters to be proposed to the Board of Directors and the Executive Committee.
In order to ensure that our Board of Directors maintains an independent perspective and further strengthen its supervisory function over business execution, in 2006, we appointed two highly independent external directors. Currently, the number has been increased to three.
Among the four internal directors, two have built careers outside of Shiseido: one as a corporate manager, and the other as a financial officer; while the remaining two have had long careers in Shiseido: one having expertise in various brands of the Company as well as new business development, and the other possessing knowledge and experience in such fields as marketing, product development, finance & accounting, and supply network. We believe that such composition ensures diversity of the Board of Directors. We also appoint younger members as executive officers, thereby aiming to strengthen the executive function.