The key objective of corporate governance in the OMRON Group is to achieve efficient and competitive management by building an optimal management structure and conducting fair and appropriate business operations. To this end, focus is placed on fulfilling management accountability, achieving management transparency and pursuing high business ethics.

In addition to strengthening management monitoring functions, OMRON separates management oversight and business execution to quickly respond to changes in the business environment.

To facilitate business operations, OMRON has adopted an executive officer system. Aiming to strengthen operations of each business area, an internal company system was introduced, with the president of each internal business company empowered by more authority to realize quicker decision-making and more streamlined operations. OMRON also promotes commitment-based management intended to clarify roles and responsibilities. This system involves identification and sharing of goals between the President and other executive officers and each business company, and objective evaluation of achievement.

To increase efficiency in the Board of Directors (BOD) and promote more substantive discussions, the number of board members was reduced to seven. The President is the only director who is also tasked with business execution, as part of the company's drive to reinforce monitoring over business functions.

For more objective management practices and strengthened management oversight, positions of the Chairman of the Board and the President were separated.

For nomination, promotion and compensation of all directors, corporate auditors and executive officers, a Personnel Advisory Committee and a Compensation Advisory Committee have been set up within the BOD. Both are chaired by an outside director and discuss personnel and compensation matters for all executives while the Chairman and the President are not present, so as to enhance the objectivity and transparency of decisions.

In December 2006, a new CEO Selection Advisory Committee was established to ensure more objective and transparent change/appointment of a new President.

Beginning in fiscal 2007, the term of directors will be shortened from two years to one, aiming to further clarify the responsibilities of the OMRON management team to shareholders and more swiftly respond to changes in the business environment.

In June 2006, to meet the increasing demand from stakeholders for more information disclosure, OMRON set forth its own information disclosure policy and standards that are stricter than the Tokyo Stock Exchange's (TSE) Timely Disclosure Rules. According to these standards, an Information Disclosure Committee chaired by the President was set up to monitor related activities for the entire OMRON Group.