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Corporate Governance Initiatives

Further improvements to soundness, efficiency, and transparency of corporate operations, and risk reduction
Kubota considers increased company-wide presence to be vital in order to achieve long-term, stable corporate value improvements – one of our top management priorities – while also balancing economic value, social value, and corporate value. In order to achieve our long-term goal of becoming a Global Major Brand capable of contributing even more toward society by earning trust from still more customers, we are promoting initiatives to further strengthen corporate governance, without limiting ourselves to increased sales and profits alone. We are working to increase corporate operational soundness, efficiency, and transparency, construct an internal governance system, and engage in appropriate risk management.
Initiatives to reinforce Kubota’s governance structure

Aiming for Sustainable Corporate Operations

  • Rapid Responses in the Management Environment, and Enhanced Corporate Governance Structure to Improve Management Transparency

    At Kubota, we have adopted the following corporate governance structure, in order to improve the speed of responses in the management environment and increase management transparency.
    • Board of Directors: Strategic decision-making and audits of execution of duties by Executive Officers
    • Audit & Supervisory Board: Auditing and supervision of execution of duties by directors
    • Executive Officers’ Meeting: Confirmation of execution of duties by Executive Officers, and prompt, appropriate management decisions
    • ESG Management Strategy Meeting: formulation of policies and evaluation of major measures for the creation of medium- to long‐term corporate value.
    • Management Committee and Investment Council: Decision-making for specific important issues, and deliberations
    • Nomination Advisory Committee and Compensation Advisory Committee: Deliberation on nominations of candidates for Directors, the compensation system, and compensation level of the Directors, with appropriate involvement and advice from the Outside Directors.

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  • Operation of an Internal Control System for Risk Reduction

    At Kubota, we are working to manage risks through an internal control system positioned as one pillar of our business activities. Based on an awareness that risk management efforts are at the core of our business, we identify items common to the entire Kubota Group such as risks related to reliability of financial reporting. We exert efforts to manage risks appropriately through continuous steady improvement to “correct any inadequacies immediately.”

    Key Categories of Major Risks in Kubota’s Management

    1. Internal control over reliability of financial reporting
    2. Internal control over the basic corporate functions such as fair trade, environmental conservation, and health and safety
    3. Internal control over compliance with rules and regulations related to equipment, import/export controls, and other compliance issues

    Major Risk Reduction Initiatives

    • Operation of the internal control system (risk management activities)
    • Operation of the “Kubota Hotline” internal reporting system
    • Securing reliability of financial reports
    • Compliance with anti-monopoly act/competition law
    • Compliance with the act against delay in payment to subcontractors
    • Prevention of illegal payments

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  • Incorporating Diverse Opinions and Expertise from within and outside the Company to Drive Enhancement of Corporate Value

    Kubota creates venues to stimulate communication with external experts and stakeholders both within and outside the company, in order to improve corporate value and practice more effective sustainability management. For example, the company holds dialogues with external experts and works to deepen Outside Directors’ understanding of business, in order to reach appropriate business decisions. Furthermore, through observation of sites, subsidiaries, and affiliates within Japan and abroad, the company also actively works to absorb a diverse range of knowledge, opinions, and appraisals to improve corporate value.

  • Continuous Efforts for Information Security

    Kubota is aware that the appropriate protection and management of personal information of its customers and other stakeholders is an important social responsibility. In order to secure its competitiveness, Kubota is also devoted to preventing the leakage of confidential information such as technological information. Depending on the type of information, Kubota appoints main divisions, including overseas, to conduct ongoing activities such as revising rules, auditing and awareness-raising at their respective locations.

  • Tax-related Diligence that Leads to Greater Corporate Value

    Based on the Kubota Global Identity, our corporate philosophy, we aim for continuous synergistic development with society through corporate activities that respect societal norms. We also believe that the proper payment of taxes is both our duty and one of our most important contributions to society, and thus we are making efforts to enhance our corporate value through proper tax-related diligence.

Aiming to Remain a Trusted, Well-Regarded Company by Conducting Fair, Good-Faith Activities

Working for attainment of the 17 goals of United Nations SDGs that aim to transform our world At the end of a United Nations Summit meeting in 2015, the Sustainable Development Goals (SDGs) were promulgated, listing 17 common goals for the international community. Kubota has identified two of these goals – “Peace, justice and strong institutions” and “Partnerships for the goals” – as sectors the company can contribute toward with initiatives centered on Group’s corporate governance.

Kubota, which advocates “For Earth, For Life,” will continue to protect the beautiful earth while further revitalizing environmental conservation activities and supporting people's prosperous lives.

Related Information

Integrated Report / ESG Report

Introducing financial and non-financial information focused on Kubota's Long-Term Vision and Mid-Term Business Plan, which are based on ESG management.

KUBOTA SMART VILLAGE

We introduce the KUBOTA SMART VILLAGE concept, which seeks to realize a future of carbon neutrality and resource recycling through comprehensive efforts to address social problems related to food, water, and the environment.