The Shiseido Group (hereinafter “Shiseido” or the “Group”) defines corporate governance as its “platform to realize sustainable growth by fulfilling its corporate mission,” and is enhancing corporate governance to achieve the objectives of its medium-to-long-term strategy, VISION 2020.
We began full-fledged initiatives toward strengthening corporate governance in 2001, and the ongoing reforms to date can be divided into three stages.
The first stage initiated corporate governance reform. Initiatives to separate the functions of management supervision and execution included the introduction of the corporate officer system. At the second stage, we implemented many initiatives for creating the framework of our corporate governance such as the establishment of the Nomination Advisory Committee and the appointment of external directors. In this way, we have set out objective quantitative and pro forma standards. We enhanced the quality of corporate governance by rigorously employing this framework and actively disclosing the outcomes. We have now begun the third stage, in which we are targeting corporate governance that furthers sustainable growth. We will achieve “tense collaboration” by balancing management oversight and supervision with the broad authority vested in the President and CEO, which he or she needs in order to exercise ultimate leadership of Shiseido’s global management.
This tense collaboration does not excessively limit or decrease the CEO’s authority, but rather establishes a process driven by full accountability of the CEO to the Board of Directors and other supervisory organs to regularly evaluate the CEO and management execution given the broad authority vested in the CEO. This process also sets a precedent for evaluations by the Nomination Advisory Committee and the Remuneration Advisory Committee, which are carried out on a regular basis.