SUSTAINABILITY
Governance
GOVERNANCE

Corporate Governance

In accordance with the Management Policy, DMC strives to establish environments and systems that enable our corporate governance to function effectively.

DMC strives to cultivate a corporate climate that respects the rights and benefits of its shareholders, customers, partners, employees and all other stakeholders in accordance with its management policy, establish systems that enable our corporate governance to function effectively to maximize mid- and long-term corporate values, and develop a solid management structure.

Governance System

The DMC Board of Directors has responsibility for making business management decisions through active discussions and reinforcement of supervisory functions over the Company’s management activities. The Board of Directors is composed of four Directors, and Board Meetings are held to address important matters regarding monthly management activities and to report the state of business execution.

DMC also holds Management Meetings with the participation of Directors, external advisors, and other appropriate individuals to reinforce prompt decision making, supervisory, and business execution functions. At Management Meetings, members thoroughly discuss basic measures regarding business, management policy, management plans and other important issues submitted by divisions and departments prior to Board Meetings, which enhances the optimization of decision making.

In addition, Group Company Meetings of USCO, the parent company of DMC, are held with the participation of top management of each group company to report the state of business performance of each group company, discuss and make decisions regarding business strategy and operation as USCO Group.

Audit System

DMC Group audits are conducted by a part-time auditor and an external accountant to validate the adequacy of the financial information. Shareholder supervision rights are enhanced for supervision of the execution of business by the Board of Directors in accordance with laws and regulations. Shareholders have the right to request the convocation of a Board of Directors Meeting in the event that a director acts outside the scope of the purpose of the Board of Directors, and to express their opinions at the Board of Directors Meeting.

CORP. GOV.

Compliance

With 40% of its total production taking place in global markets, compliance with both domestic and overseas laws, regulations and social norms is the top DMC priority in all business activities. DMC strives to ensure compliance throughout the organization. In FY2019, no serious violations of laws and regulations were reported.

In FY2019, no serious violations of laws and regulations were reported.

Prevention of Bribery

Basic Concept

DMC recognizes bribery and corruption as serious risk factors that have the potential to significantly damage the reputation of the company, and is committed to preventing illegal acts as well as scandals due to a lack of awareness.

DMC Group prohibits not only the inappropriate compensation of public servants and representatives of private companies for the purpose of gaining or maintaining business, but also the promise or approval of such inappropriate compensation. DMC also established Internal Rules that specify standards and approval processes for expenses regarding dining and other entertainment, and continues providing business partner management and education and enlightenment activities for company executives and employees. Specifically, we require advance application for and detailed reporting after the use of customer-related entertainment expenses to prevent bribery and corruption. Any violation of these rules triggers the implementation of corrective measures and strict action against violators.

Whistle-blower system (Hotline)

DMC Group has established an Internal Reporting Desk to enhance the prevention and early detection of violations against laws and regulations, and acts of dishonesty as well as to increase its reliability in society. DMC confirms the content of reports and consultations, takes corrective action and provides guidance. We also provide follow-up support to confirm that employees are not treated unfairly in order to provide appropriate protections. We received three reports and consultations in FY2019.

To establish a framework to accept reports and provide consultations for violations of compliance and harassment policy in business activities, we established Consultation Service Centers at Human Affairs & General Administration Sections at DMC and General Administration Division at USCO.

Compliance Seminars

DMC strives to increase employee awareness of compliance through seminars. In FY2019, we held seminars for six newly hired employees focusing on general violations against compliance.

Information Security

Basic Concept

DMC recognizes the importance of personal and other information received from our customers. In line with this, we have established a system to control such information and work to increase employee awareness and knowledge of the appropriate handling thereof to enhance the management system.

DMC has established “Information Management Regulations” and “Personal Information Protection and Management Regulations” for appropriate information management. We assign an Information System Manager and Personal Information Protection Manager in accordance with the regulations described above to ensure appropriate management and initiate measures for security. We also strive to increase employee awareness and knowledge of information management through in-house education. In addition, we dispose of media that contain information requiring the management specified by the above-mentioned regulations after physical destruction to prevent the risk of information leak. Thorough information management over subcontractors includes the requirement for recycling subcontractors to issue certificates of completion after data destruction.

In FY2019, we further improved security software reinforced in FY2018 to ensure a higher security level to enhance in-house networks along with the expansion of factories. In FY2020, we are planning to enhance the environment for remote work. In addition, we enhanced information security by installing a fingerprint authentication system for entry to and exit from the Indonesia Factory to prevent unauthorized entry and information leakage.

MANAGEMENT

Risk Management

Risk Management System

DMC places a priority on risk management to accurately recognize risks that may have a significant influence on corporate value and business continuity, and strives to minimize damage by such risks.

Every year, each division manager clarifies both internal and external issues to identify and evaluate risks associated with such issues. Measures for risk assessment and effectiveness are appropriately managed through monitoring in accordance with the management plan and targets set for each risk. Top management assesses appropriateness, validity, and effectiveness quarterly and shares its assessment with each division manager to realize effective risk management.

Measures against COVID-19

In response to the global spread of COVID-19, DMC strives to ensure infection control to protect the health of its employees and their families and to continue stable business activities. We take basic preventive measures following the guidelines provided by the government, including wearing masks, sanitizing, and preventing the 3Cs. In Indonesia, we obtained approval for continuing business in accordance with the guidelines issued by the Ministry of Industry. We perform appropriate risk management in preparation for further spread of the infection using other approaches such as distributing health management flows for employees and their families when they feel sick.

Approaches to the Business Continuity Plan (BCP)

DMC established a BCP in preparation for emergencies to ensure the safety of human life and the continuation of business activities. When a large disaster occurs, we must continue to provide supplies to customers, which we believe leads to the promotion of employment and vitalization of the local economy. We place a priority on business continuity to prevent disruption of our supply chain.

For emergencies, we have established an organizational structure headed by the president and subleaders assigned to perform external response, restoration, financial management and logistics support. This structure is capable of receiving top-down instructions and securing information management.

Simplified manuals created in FY2018 include estimations of damage for emergencies, advanced measures for the selection and provision of priority products, emergency systems, an education plan and standards for reconsideration of the plan.

In FY2019, we completed simplified manuals. In FY2020, we are planning to develop systematic manuals in cooperation with managers of divisions and departments.

We continue expanding the system of settlement, maintenance and revision of the BCP through periodical BCP education and training, and opinion exchange. We continue to improve our response to the BCP through opinion exchange with other companies and create effective business plans and structures for application in cooperation with our business partners, others in the industry and local communities.