Strengthening corporate governance
Materiality 11
Vision
Strategy
Reason for Priority
Corporate governance is the cornerstone of business activities. In order to ensure fair and transparent management, businesses must continue to improve their systems of governance. In addition, the governing body should forecast and respond to the various and ever-changing risks and opportunities from a medium- to long-term perspective and implement countermeasures accordingly. As such, it is essential for us to respond to the various requests of stakeholders.
Commitment
Strengthening governance is one of the principal challenges for a company, and it is necessary to build a corporate governance structure that ensures transparency and discipline in order to become a company that is trusted not only by investors but also by a diverse group of stakeholders. Nikon has implemented initiatives to improve the effectiveness of the Board of Directors further and otherwise strengthen governance. These initiatives include enhancing cooperation among the Nominating Committee, the Compensation Committee, and the Board of Directors and enhancing diversity further.
In fiscal year 2024, we will work to strengthen governance by further enhancing the effectiveness of the Board of Directors by addressing issues through evaluations of the Board of Directors' effectiveness.
Basic Approach
Based on our Corporate Philosophy, the Nikon Group will conduct operations in a highly transparent manner in order to fulfill its fiduciary responsibilities to shareholders as well as its responsibilities to all stakeholders, including customers, employees, business partners, and society, with a sincere and diligent attitude.
The Nikon Group will strive to achieve sustainable growth and enhance its corporate value over the medium to long-term by improving management efficiency and transparency, and further strengthening the supervisory function over management in light of the purpose behind Japan‘s Corporate Governance Code.
Indicators and Targets
| Indicators and Targets (Target Fiscal Year) | FY2023 Plan | FY2023 Results | FY2024 Plan |
|---|---|---|---|
| Evaluating Board effectiveness and addressing key issues: 100% (every fiscal year) |
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Board of Directors discusses and decides on policies to address issues identified in the effectiveness evaluations, taking corrective action | Discussions on and action addressing issues identified by the Board of Directors in the fiscal year 2023 effectiveness evaluation. Conduct evaluation based on preliminary questionnaire and individual interview evaluations, prepare evaluation reports |
| Board of Director Diversity: Optimizing the composition of the Board of Directors to meet stakeholder demands (every fiscal year) | Consideration of the optimal composition of the Board of Directors | One new External Director appointed (two women on the Board; External Director account for half of the Board of Directors). Ongoing consideration of structure in the next fiscal year and beyond | Consideration of the optimal composition of the Board of Directors |
Sustainability Report
For more information, refer to Strengthening Corporate Governance in the Sustainability Report.
Corporate Governance
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Basic Approach
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Strategy
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Governance
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Risk Management
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Indicators and Targets
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Major Initiatives