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Brother Group's CSR

Internal Control System

Improving the Framework and Providing Continuous Support

To ensure transparency and reliability of financial reporting

As is evident from the May 2006 enforcement of the Company Law of Japan and the requirement placed on businesses to submit reports of their internal controls from the fiscal year ending March 2009, society is demanding that businesses be more transparent and reliable about that financial reporting. The Brother Group has seen this situation as an opportunity to make operations more efficient, strengthen our position against risks, promote group management and, thereby, improve corporate value, and has thus built a reporting system.
In line with this, group companies continuously improve internal control by implementing measures such as self-checks using a check list to examine whether their internal control systems are functioning effectively, and audit by internal auditing department from an independent viewpoint.
Moreover, the Group is developing constructive activities to raise the awareness of employees about internal controls, while responding to changes such as M&A, including the opening of a site on the intranet to share information on the purpose and significance of internal controls, activities within the Group, etc. and various trainings to deepen the understanding of internal controls.
Internal controls, which serve as an important framework for supporting management, will continue to be maintained and upgraded to ensure the "transparency and reliability of financial reporting" as demanded by society, and also to continue to be highly trusted by many stakeholders.

Internal Control Framework

Internal Control Framework

Conducting Internal Audits in Collaboration with Regional Headquarters

To establish and enhance the PDCA cycle of internal control

Global internal audit meeting
Global internal audit meeting

In FY 2015, the Brother Group conducted internal audits of eighteen groups outside of Japan and four groups in Japan. Internal audits are intended to ensure the PDCA cycle of internal control, increase the transparency and efficiency of business activities, and upgrade risk response capabilities.
The internal auditing departments of Brother Industries and its regional headquarters in the Americas, Europe and Asia work closely with one another, which enables to facilitate audits of the Brother Group that properly reflected the situation of local companies much more.
The global internal audit meeting, the 7th one since 2010, was held with an aim for enhancing internal audit functions which will become increasingly important in global operations.
This meeting was attended by about 20 individuals in total from regional headquarters, BIL's Internal Audit Dept., Finance & Accounting Dept. and MIS Dept.
Aiming to realize the new Mid-Term Business Strategy "CS B2018," we will maintain and improve the internal control functions of the Brother Group by: (i) establishing internal control systems more suitable to the Group, (ii) making a PDCA cycle for internal control of the departments self-sustaining, and (iii) ensuring coordination and sharing information to increase efficiency of audits among audit functions in the Group, while dealing with changes like M&A.