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CSR Initiatives

Manegement

Internal Controls

Internal Controls

Mazda Internal Controls
Mazda internal controls

Mazda initiated a system of self-diagnosis of internal controls in 1998, and this is currently carried out at almost all consolidated Mazda Group companies in Japan and around the world.

Departments primarily responsible for internal controls cooperate with other related departments to provide training and support, working to promote internal controls to ensure that operations proceed smoothly in all departments and consolidated Mazda Group companies.

Mazda also has in place its own framework of internal controls conforming to the COSO Report*1, a global framework for internal controls, and the implementation standards of J-SOX. This framework helps to ensure the validity of financial reports, the promotion of compliance, the improvement of operational efficiency, and the maintenance of corporate assets.

  • *1Report outlining a comprehensive framework for internal controls, released by the US organization, Committee of Sponsoring Organizations of the Treadway Commission (COSO)

Self-Diagnosis System of Internal Controls

The Self-Diagnosis System of Internal Controls aims for effective implementation of risk evaluation and analysis as well as internal auditing. This system confirms the control activities for avoidance and mitigation to be taken for every foreseeable risk in the operation. It is systemized while providing a mechanism where aggregation and analysis can be conducted without overburdening the workplace.


Support for Internal Control Activities by Suppliers in Hiroshima and Neighboring Regions

The Global Auditing Department supports not only Mazda Group Companies but also suppliers in Hiroshima Prefecture and neighboring regions in implementing the self-examination system, study groups, etc., in order to enhance internal controls throughout the entire supply chain, as well as to make contributions to the local community.


Implementation of Internal Controls Signoff System

Mazda introduced the signoff system in FY March 2007. The general manager of each department and head of each company in the Mazda Group ensure internal controls by "signing-off," after addressing all business issues indicated by auditors, or discovered through self-examination. The contents of the Mazda Internal Controls Report are guaranteed by the accumulation of these signoffs.


Internal Auditing Framework

Located at the Mazda Motor Corporation, the Global Auditing Department conducts internal audits to ensure that the Company's management targets, policies, and plans comply with all applicable laws and regulations, in order to uphold the Company's sound and efficient management practices. In addition, in major operational centers in overseas Mazda Group companies in North America, Europe, Australia, Central and South America, etc., the Mazda Group has established internal auditing departments that are fully independent from the operating departments. These departments work closely with the Mazda Head Office to conduct a full range of auditing tasks, including the evaluation of internal controls. Among Mazda Group companies in Japan, dedicated internal auditing departments are also established at major dealerships, where they are chiefly engaged in the auditing of sales outlets.

These internal auditing departments are staffed with many auditing professionals of the highest caliber, bearing qualifications such as Certified Internal Auditor (CIA) and Certified Information System Auditor (CISA). The Company is also actively engaged in training the next generation of high-quality auditors. As of March 31, 2013, eight internal auditors in Mazda itself and eight in overseas consolidated Mazda Group companies hold qualifications.


VOICE

Aiming to Develop and Improving Work Process in Operation to be Simpler and has Efficiently Control for Internal Controls-Related Matters

Mazda Sales (Thailand) Co., Ltd.(Left) Suwannee Chutiratanaroaj,,(Right) Chayakan Charoensook
Mazda Sales (Thailand) Co., Ltd.
(Left)Suwannee Chutiratanaroaj,Finance Director
(Right)Chayakan CharoensookInternal Control Coordinator

We are in charge of internal controls-related matters in Mazda Sales (Thailand) Co., Ltd. (MST). We work on not only compliance with laws and regulations but also assess efficient operation. We also audit MST dealers and MST's suppliers to be consistent and accurate with MST instruction and advise them for business improvement These initiatives are developed through close communication with Mazda Head Office members. In this fiscal year, to comply with full-scope J-Sox audit, we will start the new initiatives, educating all departments, developing and improving work process effi ciently.


IT System Auditing

Mazda has in place dedicated and publicly certified system auditors who conduct auditing of the current condition and operational status of the various IT system controls of its Head Office and consolidated Group companies in order to reduce IT risks.


Quarterly Reporting of Internal Controls

In addition to the Internal Controls Signoff System introduced in FY March 2007, Mazda has been implementing a new system since FY March 2010 whereby all discovered or indicated inadequacies of each business area/Group company are fully reported to the Global Auditing Department. Deadlines and responsible personnel are assigned to each of these inadequacies for prompt improvement.


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