The DAIICHIKOSHO Group aims to be a company trusted by all stakeholders.

■Corporate Governance

The Company and its subsidiaries (the DAIICHIKOSHO Group) are focusing on sustained growth and an improvement in corporate value over the medium to long term as priority management objectives.
To achieve those objectives, we believe it is essential to (1)foster trust with shareholders, customers, business partners, employees and other stakeholders, and (2) generate stable long-term growth by providing products and services that satisfy customers and bring them closer to the Group, based on our corporate motto, "More music to society, more service to society."
In line with that thinking, we have formulated and published the DAIICHIKOSHO Group Code of Conduct as the Group’s guidelines for behavior. All employees are required to fully comply with the Code of Conduct. In addition, to achieve our priority objectives, the Group plans to step up a range of initiatives to reinforce corporate governance to comply with the aims of the Tokyo Stock Exchange's Corporate Governance Code.

Corporate Governance Report

Internal Control System

In accordance with our Internal Control System Basic Policy, we have put in place and operate an internal control framework for the whole DAIICHIKOSHO Group to ensure the Company and the Group dynamically and systematically execute management strategy and achieve business objectives in compliance with laws and regulations.


We have formulated the DAIICHIKOSHO Group Code of Conduct to ensure the Group’s business activities comply with all relevant laws and regulations.
In addition, the Internal Control Promotion Department conducts compliance training for all board members, executives and employees based on the Company's Compliance Handbook, and the Audit Department regularly conducts audits to check legal compliance. Results of the audits are reported to the Board of Directors and the Board of Corporate Auditors.
The Company also has a whistleblower system to prevent legal violations and whistleblowers are given rigorous protection.

■Risk Management

Led by the Group Risk Management and Compliance Committee, the Company and Group work to mitigate and prevent risk in accordance with the Basic Rules for the Group Risk Management.
The Group has put in place a system to ensure rapid responses to risk. Any potential risks that could cause significant damage to the Group are reported to the Board of Directors without delay. In the event of new and emerging risks, the President instructs the Group and delegates a person on the Board of Directors to take charge.
In emergency situations, the Company activates a Crisis Response Team led by the President, and establishes a clear chain of command that works to minimize losses, in line with Rules for the Group Crisis Management. The Audit Department also performs an annual audit and analysis of business risk and other risks to develop response systems, and carries out monitoring to evaluate and manage risk faced by the whole Group.

■Information Security

The Company and the Group have a major responsibility to customers, shareholders, business partners, directors and executives, and employees to appropriately handle their personal information. As such, the Company has formulated a Personal Information Privacy Policy and Regulations for Handling Personal Information to ensure full compliance with relevant data protection laws, ordinances and guidelines.

■Intellectual property initiatives

The DAIICHIKOSHO Group conducts research and development into new products and services that contribute to all stakeholders, in line with its corporate motto – “More music to society, more service to society.” We also work to appropriately and securely protect new inventions and other intellectual property created through this process in order to increase corporate value.

Intellectual property rights owned by the Group

DAIICHIKOSHO owns patents, trademarks, designs and related rights such as karaoke sound sources and music publishing rights held by record subsidiaries.

Appropriately and securely protecting intellectual property

The DAIICHIKOSHO Group has created a framework to protect and effectively utilize its proprietary intellectual property rights, while also monitoring any potential infringements by third parties and taking legal action where necessary.
The Group also manages risks to prevent any infringement of active intellectual property rights owned by third parties in the course of its business activities.

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