The Shiseido Group including the Company sets out “BEAUTY INNOVATIONS FOR A BETTER WORLD” as the Shiseido Philosophy, and defines the corporate governance as our “platform to realize sustainable growth through fulfilling the Philosophy”.
The Company is committed to maintaining and improving management transparency, fairness and speed, by putting into practice and reinforcing the corporate governance, and strives to maximize medium- and long-term corporate and shareholder value through dialogues with all stakeholders, “consumers”, “business partners”, “employees”, “shareholders”, and “society and the Earth”. In addition, while fulfilling social responsibilities, the Company aims to achieve optimized distribution of values to respective stakeholders.
Composed of eight members including four external directors and presided by the President and CEO, the Board of Directors is small and able to make decisions quickly. The Board of Directors generally meets at least once a month to discuss all significant matters.
Through the adoption of an executive officer system (including incumbent corporate officers), the business execution function is placed under the control of executive officers, separate from the Board of Directors responsible for the supervisory function. On top of that, we have the Executive Committee to discuss important matters related to business execution prior to managerial decisions from different standpoints, and the Global Leadership Committee to deliberate business plans, medium-to-long-term strategies, etc. so that the transfer of power to executive officers will be driven, responsibilities of the top management clarified, and business execution accelerated. The President and CEO chairs the Executive Committee and Board of Directors. Also, 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.
To obtain an outside point of view and further strengthen the Board of Directors’ supervisory function for business execution, we appointed two highly independent external directors in fiscal 2006, and have currently appointed four people to the post.
In addition, two of the four internal directors have built their careers outside Shiseido - one as a corporate manager, and another as a financial officer, while the remaining two have served Shiseido for many years – one having expertise in various Shiseido brands as well as new business development, and the other experienced in, and having knowledge about marketing, product development, finance/accounting, supply network, and other areas, which enables us to ensure diversity in the Board of Directors.
We are also recruiting younger members for executive officers, thereby aiming to strengthen the executive function.