• News

SDGs/ESG

Governance Initiatives

Corporate Governance System

VECTOR INC. believes that increasing the efficiency and soundness of management and building a fair and highly transparent management system are essential for achieving stable growth and development.

Basic Philosophy on Corporate Governance

VECTOR INC. believes that increasing the efficiency and soundness of management and building a fair and highly transparent management system are essential for achieving stable growth and development. In particular, strengthening corporate governance is regarded as a critical management issue for the Company, as we handle new information on the products and services of client companies. These efforts are reviewed as required to boost their effectiveness. The Board of Directors implements checks and balances to ensure fair decision-making by having five highly independent external directors and two external auditors take part in meetings and actively share information. The VECTOR Group has also adopted a corporate auditor system in which each auditor audits the legality of business execution by the directors. In addition, the Group convenes meetings of the Compliance Risk Committee comprised of the heads of subsidiaries and core business units. This committee evaluates and manages risk such as compliance risk, operational risk and financial risk, responds as required, and disseminates risk-related information in an effort to bolster the Group’s corporate governance.

Corporate Governance System

VECTOR INC. operates as a company with a Board of Directors and a Board of Auditors. The Board of Directors makes decisions regarding important matters concerning the management of the business and oversees the execution of business by directors. Representative Director Hajime Hasegawa serves as the chairperson, and it is comprised of nine members (four internal directors, five external directors). The Board of Auditors is independent from the Board of Directors, and it is responsible for monitoring its business execution. Full-time Auditor Kazutora Mori serves as the chairperson, and it is comprised of three members (one internal auditor, two external auditors). The auditors attend all meetings of the Board of Directors and make their monitoring functions for directors effective by engaging in lively opinion exchange. In addition, full-time auditors carry out audits throughout the entire Group, monitoring the approval of important proposals. The Internal Audit Department has also been established under the direct control of the Representative Director in order to strengthen the supervision of management.

Diagram of corporate governance system

Diagram of timely disclosure system

Evaluation of the effectiveness of the Board of Directors

In March 2021, the Board of Directors carried out an evaluation survey participated in by the 12 members across the Board of Directors and the Board of Auditors. Survey answers were provided directly to an external organization, allowing anonymity to be preserved. Analysis, discussion, and evaluation were then undertaken based on a report of the collected results at the regular meeting of the Board of Directors in May 2021.

Survey details

Evaluation target:

Meetings of the Board of Directors held between March 2020 and February 2021.

Participants:

All members of the Board of Directors and the Board of Auditors (12 in total)

Survey period:

Throughout March 2021

Outline:

Evaluation items
・Composition of the Board of Directors
・Operation of the Board of Directors
・Discussion by the Board of Directors
・Training
・The member's own activities
Evaluation method
・The survey contained a five-stage self-evaluation for each question. It included sections where participants could freely enter information regarding points they deemed to be necessary to further increase the effectiveness of the Board of Directors. Analysis, discussion, and evaluation were then undertaken at a meeting of the Board of Directors.

Results of analysis and evaluation

Based on the results of the analysis, discussion, and evaluation by the Board of Directors, it was found that Board was performing effectively overall. However, for each of the evaluation areas, issues that need to be addressed were identified as below.

1.Composition of the Board of Directors: Review of composition (currently only one female member out of the nine members in total)
2.Administration of the Board of Directors: Timely provision of meeting materials
3.Discussion by the Board of Directors: Revision of matters delegated to subordinate committees
4.Training: Provision of training opportunities requested by employees
5.The member’s own activities: Exchange of information among external directors

Future initiatives based on the evaluation results

In light of the issues identified, in order to improve the operation of the Board of Directors, the Company will work to provide meeting materials in a timely manner to ensure there is sufficient time for the consideration or proposals. The Company will also discuss the other issues identified at ad hoc meetings of the Board of Directors and strive to maintain and enhance the Board’s effectiveness.

Basic Approach for the Management of Subsidiaries

To support its lasting development, the Group is working to clarify management responsibilities and ensure management transparency, efficiency, and soundness. With an increase in the number of its Group companies both in Japan and overseas, we are continuing to grow while rapidly expanding our business domains and new areas of service.
In light of this, the Group is developing an effective management system to respond to the expanding business scale. In addition to ensuring business execution complies with laws and internal regulations, it carries out internal audits regularly, working to conduct operations appropriately and protect its assets. Furthermore, the Group endeavors to enhance management efficiency in order to improve the effectiveness of these efforts.

・The Group has established the “VECTOR Group Compliance Policy” as the basic standard and put in place “Compliance Risk Management Rules” and “Rules on Responding to Incidents and Scandals” for its subsidiaries. The Compliance Risk Committee is also building a system that allows the Group to detect potential risks an early stage and take swift and appropriate measures in regard to incidents and scandals.

・In principle, directors and auditors shall be dispatched to each subsidiary, and by supervising and auditing the execution of duties, they shall provide guidance and support for the development of a framework that ensures subsidiaries comply with laws and conduct operations appropriately.

・The Internal Audit Department shall periodically conduct internal audits of subsidiaries and provide necessary guidance and support to ensure the soundness of each company.

It was identified that errors were made when recording sales of the consolidated subsidiary ASHITA-TEAM Co., Ltd. In response, we established an Internal Investigation Committee comprising external experts as the principal members, and the committee provided an investigation report outlining the facts of the incident. Based on the recommendations of the report, the Board of Directors formulated recurrence prevention measures for ASHITA-TEAM. Moreover, we reformed the Group governance system, revising the internal control systems of all Group companies and strengthening the monitoring of the status of operations.

Recurrence prevention measures for ASHITA-TEAM

・Revision of the management system (strengthen the management system by replacing the President of ASHITA-TEAM and dispatching one director from VECTOR INC. to join them)
・Revision of the administrative system (strengthened the administrative system by dispatching the Senior Manager of Business Management Headquarters and two team members in charge of accounting from VECTOR INC.)
・Revision of the internal audit system (strengthened the internal auditing system by dispatching a full-time auditor from VECTOR INC.’s Internal Audit Department)
・Improvement plan for products (terminated the sale of lifetime licenses for cloud systems)
・Improvement plan for the ordering process (made it a requirement for itemized statements and quotes to be made for orders)
・Improvement plan for post-order processes (improved the process for the reception of acceptance notifications for each service provided)

Subsidiaries

PR・Digital Marketing Business

  • antil
  • platinum
  • initial
  • signal
  • vecks
  • starbank
  • evech
  • total
  • brand control
  • news technology
  • ir robotics
  • international

Press Release Distribution Business

  • pr times

Video Release Distribution Business

  • news tv

Direct Marketing Business

  • vitabrid japan
  • direct tech

Human Resources Business

  • ashita team

Media Business

  • smart media

Fund Businesses

  • 100 capital

Corporate Ethics

VECTOR INC. and its Group companies value the human rights of all people involved in their business activities, such as directors, employees, (including part-time and temporary employees) and those engaged in the operations of their subcontractors. We strive to create an environment where employees can work as themselves, without being subject to any discrimination or harassment in their employment and treatment, on the basis of attributes such as race, religion, gender, age, sexual orientation, gender identity, gender expression, disability, and nationality.

Furthermore, we provide an appropriate standard of wages, complying with minimum wage and other such laws, regulations, and labor standards in the countries and regions where we conduct businesses activities. In consideration of workers’ rights, we maintain harmonious industrial relations by selecting employee representatives in a fair and appropriate manner.

The Company has established a framework that enables directors and employees to consult with and report to Compliance Risk Committee members in the event that they notice actions which may violate compliance, or behavior which they feel constitutes harassment. In addition, we regularly conduct moral training and other training in an effort to ensure that compliance is upheld in all business activities.

Establishment of the COVID-19 Countermeasures Office

The VECTOR Group established a COVID-19 Countermeasures Office to respond to the state of emergency declared by the Japanese Government in April 2020 due to the growing COVID-19 pandemic. The office has continued its activities to prevent the spread of infection after the declaration of emergency was lifted.

Basic policies

In addition to implementing effective measures to respond to the pandemic systematically and at an early stage, the VECTOR Group has established three basic policies to support the stable continuation of priority business operations.

01
Ensuring Safety

The protection of the lives of employees and their families, as well as the lives of partners, customers, and members of the surrounding society is the Group’s highest priority.

02
Preventing the Spread of Infection

The Group will establish measures to prevent infection, secure epidemic prevention materials, and from both a company-wide perspective and a perspective of social responsibility, will strive to prevent infection from reaching our partners.

03
Continuation of Business

While complying with laws, regulations, and government directives, the Group will establish systems, such as telework required for continuous operations.

Measures for the prevention of infection and business continuity

Response as individual employees

Limit travel to areas with many people (shopping districts, tourist sites, etc.) as much as possible.

Thoroughly practice face mask wearing, hand washing, alcohol sanitizing, etc.

Refrain from and cease eating out

Refrain from nonessential travel during states of emergency

Frequently ventilate

Measures as a company

Promotion of telework

Lower the risk of infection from going outside
Note: The necessity of traveling to the office for work is judged by each company and department after the employee consults with their supervisors.

Partial revision to the telework guidelines

1 .The condition stipulating that telework is only available to employees with at least one year of continuous service has been removed.
2 .If an employee wishes to do telework three or more days per week, the request will be decided by leaders at each Group company and those in charge of each business.
3 .The previous approval application process is no longer required, and employees can acquire approval directly from their supervisors via email.

Refraining from and ceasing group dining and parties, whether within or outside the company

Lower the risk of infection from dining at restaurants.

Recommending online meetings

The conducting of meetings online has been recommended, whether they are held internally or externally.