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Internal Control

The Sumitomo Corporation Group has strengthened its internal controls to retain the trust of all its stakeholders.

Internal Control

The Sumitomo Corporation Group comprises five Business Units as well as regional organizations in Japan and overseas. Business Units, organizations, and Group companies collectively work together in a broad range of business fields. It is essential that we provide a uniform standard for operational quality at these businesses, irrespective of their business sector or region. Also, this standard must meet the expectations of our stakeholders.

Initiatives and Transformations for Enhancing Internal Control

Financial Reporting

The Company complies with laws, regulations, and accounting standards pertaining to financial reporting and strives to disclose information in a timely and appropriate manner.

For its financial reporting internal control system, the Company takes steps to comply with the Internal Control Reporting System stipulated in the Financial Instruments and Exchange Act, effective from April 1, 2008, by evaluating internal controls as required by law and then implementing improvements to its business processes based on these evaluations. Furthermore, the Sumitomo Corporation Group does not limit itself simply to establishing and evaluating its internal control systems as required by the Financial Instruments and Exchange Act. Rather, we view these legal obligations as a prime opportunity to further the promotion of operational quality improvement measures such as those we have traditionally advanced a step ahead of social change. These improvements are pursued through a concerted Groupwide effort.

Information Management

Information related to business operations is categorized into different levels of confidentiality based on its importance to information managers in order to identify how this information should be handled. Based on these categories, we strive to guarantee effective information security, promote efficient information processing, and share information as appropriate.

Information managers store documents that are legally required to be stored as well as information that has been deemed by the Company to be crucial to internal management over the predetermined period. Information managers decide the necessity of storing other information and the period over which this information should be stored. Moreover, Sumitomo Corporation strives to reduce its risk of falling victim to attacks from outside the Company aimed at misappropriating or damaging Company information assets. In addition to installing system-based safeguards, we conduct ongoing training and drills for employees while establishing and monitoring self-response systems at major subsidiaries and other Group entities. The Company also coordinates with specialized third-party organizations to stay up-to-date on relevant information and to formulate effective and efficient information security measures.

Information Management System

Internal Audits

The Internal Auditing Department, which reports directly to the President and CEO, is an independent organization that monitors the operations of the Company and its Group companies.

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