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 meets at least once a month to discuss all significant matters.
Through the adoption of a corporate officer system, we separate the supervisory functions of the Board of Directors from the business execution functions of corporate officers. The Company sets up meetings of the Executive Committee, in which corporate officers’ study and discuss matters of important business execution from various aspects before final decisions, and the the Board of Directors for development of medium-term/annual plans, in which corporate officers develop and resolve business plans and brand strategies. Thereby, the Company drives delegation of power for business execution by clarifying corporate officers’ responsibilities and accelerating business execution. The President and CEO chairs the Executive Committee and Board of Directors. In addition to the above, corporate officers hold Decision-Making Meetings of Corporate Officers to make decisions regarding the execution of business in their respective business divisions, as well as deliberate matters to be proposed to the Board of Directors and the Executive Committee. The term of directors and corporate officers is one year.
To obtain an outside point of view and further strengthen the Board of Directors’ supervisory function with regard to business execution, Shiseido appointed two highly independent external directors in fiscal 2006. Shiseido added one external director in 2011 and one more in 2016. As such, Shiseido currently appoints four highly independent external directors.
In addition, one of the four internal directors, concurrently serving as CEO, has built a career outside of Shiseido, while the remaining three have had a long career inside the Company and possess knowledge and expertise in the following fields: one, in research, innovation and technology; another, in various brands of the Shiseido Group as well as new business development; yet another, in marketing and product development, finance and accounting, supply network and other areas. Thus we ensure diversity among our directors. We are also recruiting younger members for corporate officers, thereby aiming to strengthen the executive function.