Messages from Outside Directors and an Outside Audit & Supervisory Board Member

Creating an open environment and sparking active deliberation

Osamu Shinobe

Outside Director
Chairperson of the Board of Directors

Kao’s board was extremely busy in FY2022. In the face of severe business environment conditions, we held deliberations on progress in the Mid-term Plan 2025 (K25) while tackling challenges for FY2022 performance. We also held deliberations on viewpoints for mid- to long- term corporate value enhancement, such as corporate governance, human capital strategy and the ESG Strategy. To enhance the effectiveness of the Board, it is vital for all members to demonstrate their own knowledge, experience and values to the maximum possible extent. One of Kao’s strengths is the way open-minded deliberations are carried out regardless of each member’s position. As Chairperson, I focus efforts toward building an environment to facilitate even franker opinion exchange. I have implemented creative ideas such as increasing opportunities for receiving reports on Kao’s businesses and for casual talking.
Kao is currently at a crucial juncture. It is important to deliberate the challenges on K25, quickly promote structural reforms in existing businesses, and develop competitive businesses that respond to environmental changes. The Board of Directors understands the current situation in a timely manner, identifies issues and makes decisions more swiftly, and will strongly support these executions.

A passionate Board of Directors with ambitious and talented members

Eriko Sakurai

Outside Director

I was appointed as an outside director of Kao in March 2022. The impression of Kao that I had upon assuming this position was no different from my external perspective as a consumer, which surprised me. Isn’t this consistency the essential quality of a company that can be trusted?
I also feel a strong sense of engagement from members in the Board of Directors. For Directors and Audit & Supervisory Board Members to fulfil their duties entrusted to them by shareholders, I believe it is important for each member to have the passionate desire to contribute to success of Kao, and to make best use of insight and skill. Kao’s Board is a passionate one that puts this concept into practice. The executives respond flexibly and rapidly to proposals from the Board.
In the third year of K25, it is crucial to formulate and execute realistic strategies that reflect environmental and market changes based on this vision. I will hold deliberations and monitor progress to make sure this is being achieved.
Kao has incredible technologies and an innovative spirit for creating truly unique products and services. To make full use of these assets, it is crucial to incorporate various values and opinions into decision-making. I will also focus on whether management is carried out in a manner that can compete with global competition.

Aiming for corporate governance that incorporates opinions from the Genba*

Hideki Amano

Outside Audit & Supervisory Board Member
Chairperson of Compensation Advisory Committee for Audit & Supervisory Board Members

In Kao’s Audit & Supervisory Board, Outside Audit & Supervisory Board Members also participate in division interviews and on-site visits, meaning that members work with a sense of unity. As many members as possible participate in interviews and on-site visits, and audits are conducted from on diverse viewpoints from individual careers and insight. At the end of interviews and on-site visits, we summarize matters based on three categories: comments and requests, advice and excellent initiatives. These details are shared with the audited divisions to rapidly engage in the PDCA cycle. I believe that Kao has an open corporate culture in which people from the audited divisions consult with members about challenges and issues.
The structures and systems for audits and supervision have been continually improved in 2022. The support system was strengthened, and the Group governance system has been strengthened, such as with staff members of the Office of the Audit & Supervisory Board concurrently serving as auditors of subsidiaries. By actively exchanging views, I encourage viewpoints from Audit & Supervisory Board Members to be incorporated in executive monitoring.
FY2023 is the halfway point for K25. I will closely watch the process and results of structural reforms while helping to achieve appropriate corporate governance from the perspective of integrated risk management and internal control.

  • * In Japanese, Genba means the actual spot or on-site.
Page Top