Planned reforms

Our first steps

Governance Reform

Governance Reform includes changes to our Board and strengthened dialogue between board and executive team to improve overall governance.

– Strengthen function and oversight of the Board and its effectiveness to oversee management and strategy.

– Strengthen key functions including Board Secretariat and Governance Committees.

– Enhanced composition; outside Chairperson, 50% of Board to be outside directors.

– External Governance Review Committee informing roadmap for reform.

Culture Reform

Culture Reform includes driving a more open culture and collapsing siloes to promote greater cross-organizational collaboration.

– Transformation team comprising diverse group of employees to work with external experts to drive company wide transformation and enhance culture from within.

– Renewal of personnel and talent systems including greater rotation between divisions, greater diversity in people’s background and skills, more outside hires, revised incentives, greater support for mid-management and frontline workers.

Quality Reform

Quality Reform includes fundamental reform of internal audit and quality management processes, drawing on external expertise.

– Establish dedicated Corporate Quality Assurance Reengineering Group, reporting directly to the CEO, with appointment of external executive officer in charge of quality (CQO) in April 2022.

– Reconstruct the control function, address technology and resource issues, enhance awareness of quality compliance.

Dialogue with stakeholders

We are committed to actively engage in dialogue throughout this process with our employees, customers, shareholders, investors and all valued stakeholders.

Employees will be at the center of our efforts to rebuild and we will be prioritizing direct engagement between management and those on the frontline.

We will be providing customers greater transparency around our commitment to safety assurance and the systems we have in place.

We commit to open and transparent disclosure of information to our shareholders, and broader society.

Planned reforms & tentative timeline

October 2021

  • 1. Company-wide Investigation continues
  • 2. Development of systems and measures to address quality, organizational culture, and governance issues, commences, including:
    • – Corporate Quality Assurance Reengineering Group established
    • – Team Sousei (Creation) company transformation project kick-off
    • – Quality audits enhanced through formation of dedicated quality audit team
    • – Reinforcement of company whistle-blowing system
    • – Establishment of external Governance Review Committee
    • – Commence planned changes to board composition: outside chairman appointed, 50% of board to be outside directors

January 2022

  • 1. Progress report on investigation status approximately every three months

March 2022

  • 1. Core themes for urgent action identified by Team Sousei (Creation) company transformation project
  • 2. Governance Review Committee provides summary of issues and recommendations

April 2022

  • 1. Appointment of external executive officer in charge of quality (CQO)
  • 2. Team Sousei (Creation) develop concrete roadmap for reform and proceed with implementation
  • 3. Domestic investigation to conclude
  • 4. Investigation into group companies commences

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