Corporate Governance

Basic Concept

Sharp’s business philosophy contains a statement of “Our future prosperity is directly linked to the prosperity of our customers, dealers and shareholders...indeed, the entire Sharp family.” Under this philosophy, Sharp’s basic concept concerning corporate governance is to maximize corporate value through swift and accurate management that preserves transparency, objectivity and soundness.

Based on this stance, Sharp appoints outside directors who have deep insight and various experiences in the fields of social and economic trends, management, and so on. Also, we are improving the agility of decision-making process, while strengthening the supervisory function of directors’ execution of duties, by selecting a company with Audit & Supervisory Committee, with regard to the design of the company’s organ.

With regard to the business execution, Sharp separates the supervision / decision-making function and business execution function through the introduction of Executive Officers System, and has established a system that can steadily make quick and efficient business executions. Also, Sharp has clarified the profit responsibility of each Business Unit, by which we have been strengthening the individual business and those operations. And, Sharp has been well controlling those by the Headquarters organization. Furthermore, to raise compliance awareness among all directors, executive officers, and employees, we have established the "The Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct" as a concrete guideline and are working to thoroughly disseminate it.

Sharp has set up “Basic Policy for Corporate Governance,” based on the basic concept of the above.

Status of Corporate Governance System

Sharp’s corporate governance system comprises the Board of Directors, supervising directors’ execution of duties, and the Audit & Supervisory Committee, auditing the business executions of directors, together with Executive Officers System which divides the supervisory and decision-making functions from the business execution functions. Also, Sharp will continue flexibly to respond to the changes in the business environment and work on building an optimal corporate governance system.

The Board of Directors Meetings of Sharp Corporation makes decisions on matters stipulated by law and management-related matters of importance, and supervises the state of business execution. Also, the Company has the Internal Control Committee, the Compensation Committee, and the Nominating Committee, as advisory bodies to the Board of Directors.

In addition to the Board of Directors, the Company has the Executive Management Committee, whose members are executive officers, where matters of importance related to corporate management and business operation are discussed at appropriate and timely occations. This committee facilitates prompt executive decision making.

The Audit & Supervisory Committee is composed of four directors as the members of Audit & Supervisory Committee, and all of them have highly specialized knowledge & extensive experiences. Three of them are independent directors, and one of them is full-time Audit & Supervisory Committee member.

The Audit & Supervisory Committee members meets regularly with the executive directors, the accounting auditors, the Internal Audit department and others to exchange opinions and work to ensure that business is executed legally, appropriately and efficiently.

Sharp has set up “Standards for Independence of Outside Directors,” to judge the independence of outside directors.