Internal Control
Internal Control
| Fiscal 2025 Objectives | Fiscal 2025 Achievements | Self-Evaluation | Priority Objectives for Fiscal 2026 |
|---|---|---|---|
|
|
★★ |
|
- Self-evaluation: ★★★ Achieved more than targeted / ★★ Achieved as targeted / ★ Achieved to some extent
As a means of facilitating the effective functioning of corporate governance, we have designed and operate an internal control system for ensuring the propriety of business activities across the entire Sharp Group based on the provisions of Japan’s Companies Act and of the Internal Control Report System, which falls under the Financial Instruments and Exchange Act.
Specifically, in order to establish our basic approach to internal control, the Basic Policy for Internal Control was adopted by the Board of Directors. In accordance with this policy, we also established the Internal Control Committee, chaired by the president & CEO, to serve as an advisory panel to the Board of Directors. The Internal Control Committee discusses various internal control system-related policy measures, while also affirming their design and operation, and, when necessary, carries out other duties, such as proposing revisions to the Basic Policy. We also develop and maintain systems and structures, such as specialized departments, in accordance with the Basic Policy, establishing and implementing measures to facilitate them and comprehensively checking and evaluating their status of operation, as well as working to entrench and improve them. In particular, we endeavor to, among other things, improve our financial reporting-related systems, strengthen compliance, and reduce business risks all for the sake of increasing the effectiveness of our internal control system.
In fiscal 2025, we designed internal controls for the Sharp Group, conducted an exhaustive confirmation and evaluation of their operations, underwent internal and external audits, formulated corrective plans for any issues identified, followed up on the progress of improvements, and are continuously monitoring and evaluating the results, all as part of efforts to improve the effectiveness of the Sharp Group’s internal controls. In addition, the Internal Control Committee convened twice during the fiscal year to perform regular monitoring and evaluate the design and operation of the internal control system. Members discussed ways to enhance internal controls in light of changes in the risk environment surrounding the Sharp Group. Topics included risk response based on business risk management, operation and enhancement of the whistleblowing system, visibility of compliance issues, thorough corrective management, and compliance with new laws and regulations. The results were reported to the Board of Directors.
We submitted an Internal Control Report in June 2026, concluding that, as a result of these efforts, our internal controls were effective across all control domains for the fiscal year ended March 31, 2026.
In fiscal 2026, we are continuing to strengthen and evaluate the control functions in our control domains, which include those of affiliates in Japan and other countries. We will also conduct concentrated efforts to resolve the material issues (problems) discovered during evaluation and will work continuously to improve and enhance our internal controls to ensure efficiency and effectiveness.
Internal Control System (As of June 2026)
