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The corporate governance (April 12, 2012) <PDF 158kb>

OMRON Group has set forth the following principles and policies and strives to put them into practice.

1. OMRON Group Principles
   1. Corporate Core Value
      
      • Working for the benefit of society
   2. Management Principles
      
      • Challenging ourselves to always do better
      • Innovation driven by social needs
      • Respect for humanity
   3. Management Commitments
      OMRON Group's management commitments are "respect for individuality and diversity," "maximum customer satisfaction," "relationship-building with shareholders," and "awareness and practice of corporate citizenship." In addition to practicing fair, highly transparent management, we seek to develop relations of mutual trust with our stakeholders through sincere dialogue.
   4. Guiding Principles for Action
      "Quality first," "unceasing commitment to challenging ourselves," "integrity and high ethics," and "self-reliance and mutual support" are the guiding principles of the individuals and organizations that comprise OMRON Group. To live up to our core value of "working for the benefit of society," each and every employee in every OMRON Group company will strive to enhance the quality of their day-to-day activities while pursuing self-development and business expansion.
2. Purpose and Philosophy of the OMRON Group's Corporate Governance
   1. The purpose of corporate governance in the OMRON Group is to earn the support of stakeholders and realize sustainable growth of the company by strengthening our business competitiveness. We have also created a mechanism (a supervisory system) to verify this.
   2. To keep up with stakeholder expectations, we have specified one key management objective: to maximize the OMRON Group's value in the capital market on a long-term basis. To realize efficient, competitive management, we will build an optimal management structure, conduct fair business operations, and enhance the management and oversight frameworks to verify these efforts.
   3. The Corporate Governance Committee chaired by an outside director was established as an advisory committee to the Board of Directors, and will continually enhance corporate governance at the Company and increase management fairness and transparency.
3. Corporate Value-Oriented Management
   1. Separation of Management Oversight and Business Execution
      In addition to strengthening management oversight functions, we separate management oversight and business execution with the aim of agile corporate governance that can respond quickly to changes in the environment. We adopted the executive officer system and, to optimize our business operations, we also introduced an internal company system in which substantial authority is delegated to internal company presidents, which speeds up decision- making and promotes more efficient business operation.
   2. Autonomous Business
      Autonomous individual business units that can specialize in creating value for customers take the initiative in conducting business. In addition, through commitment-based management we clarify roles and responsibilities and practice corporate value management based on shareholder value.
   3. Maintenance and Enhancement of the Internal Control System
      We maintain an internal control system to consistently identify internal and external risks that threaten to interfere with continuous improvement of corporate value, and implement appropriate responses.
4. Three Perspectives in Business Operations
   To ensure the proper operation of corporate value-oriented management, we will be conscious at all times of the three perspectives of fulfilling management accountability, achieving management transparency and pursuing high business ethics in order to continuously strengthen corporate governance.

OMRON's Corporate Governance Structure

As part of efforts to implement strongly stakeholder-focused management, Omron established a Group CSR Committee in FY2008 with the aim of integrating overall corporate strategy and CSR strategies. The committee pooled information regarding increasingly complex CSR-related issues, discussed appropriate measures to respond to these issues, and through this process contributed to the drafting of Omron's long-term strategy VG2020 (into which a CSR perspective was integrated), thereby achieving the committee's original goal of integrating overall corporate strategy and CSR strategies.

In order to ensure more efficient and effective implementation of the VG2020 strategy, it was deemed appropriate that the functions of the Group CSR Committee be transferred to and integrated with that of the Executive Committee, and the Group CSR Committee was therefore dissolved on March 29, 2012. CSR-related issues will continue to be dealt with by the entire Omron Group especially by the departments directly responsible for each issue and/or the CSR-related committees that were formerly subordinate to the Group CSR Committee.