CSR / Environment

Internal Control

Internal Control

  • Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent
Fiscal 2017 Objectives Fiscal 2017 Achievements Self-Evaluation*
  • Thoroughly develop and maintain various measures related to internal control, based on Basic Policy for Internal Control;
    complete those measures as initially scheduled
  • Continue intensive efforts to resolve material issues (problems) in each internal control area, and submit Internal Control Report in June 2018
  • Completed measures as initially scheduled through continuous operation of those measures
  • Reviewed measures and conducted intensive efforts to resolve material issues (problems), and submitted Internal Control Report in June 2018
★★
Priority Objectives for Fiscal 2018
  • Thoroughly develop and maintain various measures related to internal control, based on Basic Policy for Internal Control; complete those measures as initially scheduled
  • Continue intensive efforts to resolve material issues (problems) in each internal control area, and submit Internal Control Report in June 2019

As one way to ensure that its corporate governance is functioning effectively, Sharp is developing and maintaining its internal control system to ensure that the entire Sharp Group engages in fair and appropriate business practices based on the provisions of Japan's Companies Act and of the Internal Control Reporting System falling under the Financial Instruments and Exchange Act.

In response to the enactment of the Companies Act in 2006, the Board of Directors passed a resolution to adopt a basic policy related to the development and maintenance of systems necessary to ensure the propriety of business practices (Basic Policy for Internal Control). The company is working to properly maintain and operate those systems. In accordance with this policy, Sharp also established the Internal Control Committee to serve as an advisory panel to the Board of Directors. The Internal Control Committee discusses various policy measures related to the internal control system, while also affirming their operational status.

In June 2017, Sharp revised its Basic Policy for Internal Control. It thoroughly affirmed the development and operational status of various measures in line with this Basic Policy, and made sure the measures were established across the company. And in response to the Financial Instruments and Exchange Act, the Sharp Group has been evaluating the effectiveness of its internal control system with respect to financial reporting. It has also taken steps to reduce various business risks through the sound operation of its internal control system.

In fiscal 2017, Sharp implemented various measures to boost the control functions of each internal control area as well as the efficiency with which internal control system effectiveness is evaluated. Sharp also mounted intensive efforts to resolve critically important items and submitted an Internal Control Report in June 2018.

For fiscal 2018, Sharp will identify and work towards solutions for important processes and related IT systems for each business unit, by responding rapidly and flexibly to accelerated structural reforms including affiliated companies in Japan and overseas, to enhance the effectiveness of the internal control system.

Internal Control System (As of June 2018)