Corporate Governance

DNP believes that enhancing corporate governance is a critical management challenge that will help us to maintain the trust of all our stakeholders, contribute to the sustained growth of society and increase enterprise value.
DNP has established and operates systems that enable precise managerial decision-making, prompt and appropriate business execution based on these decisions, and supervision and auditing of these processes. We also provide comprehensive training and education to employees in our bid to improve our overall corporate governance.

DNP’s Corporate Governance Structure

Structural diagram of DNP’s corporate governance and internal control system

General Meeting of Shareholders, Accounting Auditors, Audit, Board of Directors, Advisory Committee, Group Management Committee, Audit, Auditor (meeting), Executive Director, Operating Units, Executive Officers in Charge, Divisions, Group Companies (Autonomous implementation, inspection, review, improvement), Reporting, Audit, Guidance, Training, Head Office, Corporate Ethics Activities Committee, Open Door Room, (Compliance System Control), Information Disclosure Committee, Sustainability Committee, Information Security Committee, Quality Assurance and Product Safety Committee, Legal and other main divisions, (Sustainability Promotion Department, Personnel & Employee Relations Division, Human Resources Division, Technical and Engineering Division, Finance & Accounting Division, Corporate Planning & Control Department, Business Promotion Head Office, Intellectual Property Division, IR and Public Relations Division, Corporate Communication Division, Legal Affairs Department, etc.), BCM Promotional Committee, Central Disaster Prevention Council, Reporting, Audit, Guidance, Audit, Guidance, Auditing Department, Audit, Reporting, Assistance, Audit Unit, Reporting, Coordination

Risk Management and Compliance

DNP is making efforts to strengthen risk management and compliance. For risks with a significant impact on management, within the organizations that respond to each risk, DNP has established regulations and also implements inspections, guidance, and education for each basic organization and each group company and works to reduce and prevent risks while striving to respond quickly and minimize losses when risks do occur.

Compliance with laws and social ethics

Rather than simply having each of our employees comply with laws and regulations in the execution of DNP’s business activities, we believe that DNP can win society’s trust by maintaining even higher ethical standards than society expects and by consistently remaining fair and equitable as we help to maintain and develop orderly, free and competitive markets. In order to be able to act in ways that meet society’s expectations, DNP works to imbue corporate ethics throughout the DNP Group.

Fair Operating Practices

To continue providing new value in keeping with its corporate philosophy, DNP accurately recognizes economic, social and environmental-related issues and risks and promotes initiatives for integrated risk management. The Corporate Ethics Committee, which is the organization overseeing internal control of divisions within the head office, and the Sustainability Committee, which handles matters related to sustainability, are responsible for ESG-related risks. Important matters deliberated on by each committee are discussed and decided at the Board of Directors in conjunction with management policies, management strategies and other important matters. Meanwhile, DNP also recognizes that variable factors it identifies as risks are at the same time opportunities for business expansion.

Construction of systems that support business continuity

In the event that an emergency situation should compromise the continuity of DNP’s business operations, any interruption in our operations would affect not only DNP but our customers, suppliers, their employees and a variety of stakeholders. DNP has prepared a business continuity plan in order to build a strong corporate structure that can continue operating under crisis conditions and quickly restore operations in the event of an interruption. We maintain a proper awareness of disaster risk in the course of our daily operations, and we implement employee training and other measures aimed at enabling us to cope appropriately in extreme situations.

Disaster prevention system for use in unforeseen circumstances

At DNP, we have established the Central Disaster Prevention Committee to develop and promote disaster preparedness measures throughout the group, the Business Division / Group Company Disaster Prevention Committee to promote them according to the characteristics of each division, and the Area-specific Disaster Prevention Committee to promote them in cooperation with the Ministry of Education, Culture, Sports, Science and Technology. Through these committees, we prepare disaster management plans and promote preventive measures.
Our experience of the Great East Japan Great Earthquake reaffirmed the importance of a Business Continuity Plan (BCP) that gives top priority to human safety in times of disaster and increases corporate response and resilience. Based on these priorities, we recognize disaster risks on a daily basis and promote appropriate preventive measures.
In order to deal with disasters and other unforeseen circumstances, we established a basic policy and promotion system in the Basic Regulations for Disaster Countermeasures at the DNP Group to ensure the safety of employees parties concerned. We promote disaster prevention measures that give our stakeholders confidence in our operations in the event of a disaster.

Head Office Each Business Unit / Group Company

Permanent Disaster Prevention Organization

Central Disaster Prevention Committee at the DNP Group

Deputy chairperson
· Human resources subcommittee
· Facilities subcommittee
· Asset preservation subcommittee
· Business activities subcommittee
· Public relations subcommittee
· Community subcommittee

Business Unit and Group Affiliate Disaster Prevention Councils

Deputy chairperson
· Human resources coordinator
· Facilities coordinator
· Asset preservation coordinator
· Business activities coordinator
· Public relations coordinator
· Community coordinator
Fire protection and disaster prevention manager (DNP's own firefighting organization)

*Individually established for each business unit / group company
In areas composed of multiple organizations, area-specific disaster prevention committees are also set up to promote disaster prevention measures across the organization.

Functions and roles

Development and promotion of comprehensive and systematic disaster preparedness measures throughout the DNP Group

Promotion of practical disaster preparedness measures considering business content and regional characteristics

Maintenance of regulations, plans, etc.

Basic regulations for disaster countermeasures at the DNP Group
· Basic plan for disaster prevention at the DNP Group
· Large-scale earthquake response plan at the DNP Group
Regulations for fire protection / disaster prevention management at the DNP Group

· Disaster response work plans
· Business Continuity Plan (BCP)
· Firefighting plan

Countermeasures organization in times of disaster

Central Disaster Response Headquarters at the DNP Group

*The DNP Group’s Central Disaster Prevention Committee will be transferred as is, to promote and otherwise take overall control of company-wide disaster emergency measures, disaster recovery / reconstruction and other necessary measures in the time of a disaster.

Disaster Response Headquarters for each Business Unit and Group Company

*The disaster committee in each business unit / group company will be transferred as is, to promote and coordinate disaster emergency measures, disaster restoration / reconstruction and other necessary measures at a specific disaster site.