“Mission of Audit & Supervisory Board Members” and“Mission of the Japan Audit & Supervisory Board Members Association” (*)
September 29, 2011
Japan Audit & Supervisory Board Members Association
Sound and efficient corporate management is essential at all times, inorder to ensure people's well-being and increase affluence in society. In
order to attain this objective, Audit & Supervisory Board Members(“A&S Board Members”) must fully discharge their responsibilities, withthe aim of establishing solid corporate governance so that corporations
can be soundly managed while still continuing to grow.
The Japan Audit & Supervisory Board Members Association (“JASBA”),
a public interest incorporated association, supports the work of A&S
Board Members to enable them to meet the expectations of various
stakeholders including shareholders and the expectations of society, by
carrying out the responsibilities of A&S Board Members as provided bylaw. The JASBA also has the important mandate of raising theawareness of people both in and outside Japan, of the reliability andvalue of Japan’s A&S Board Members system.
The mission statements set out in this document are intended to stateclearly the roles and mandates of A&S Board Members and the JASBA
and to convey their resolve to carry out those roles and mandates
effectively.

(*)

In August, 2012, the Japan Audit & Supervisory Board Members Association changed its

recommended English translation of “ Kasnsayaku ” from “Corporate Auditors” to “Audit &Supervisory Board Members” and thereafter in January, 2013 it changed its English name from“the Japan Corporate Auditors Association” to the current English name.

Mission of Audit & Supervisory Board Members
We aim to contribute extensively to thesound and ongoing growth of corporations and society
by maintaining a fair and impartial stancein our role in upholding corporate governance.

Guidelines for Conduct of A&S Board Members(1)We meet the expectations of all stakeholders by undertaking
continuous education, cultivating a spirit of independence andself-discipline, and being trustworthy.
(2)We perform our daily activities as A&S Board Members withfairness and in good faith based on the principle of integrity , theprecepts generally accepted in society and accurate information
sourced from our on-site visits.
(3)We strive to strengthen corporate governance by carrying out ourduties as A&S Board Members in a principled and professionalmanner and by being accountable in all circumstances.

2Mission of the Japan Audit & Supervisory Board Members
AssociationWe aim to contribute to the creation of an affluent global
community by: raising the awareness of people both in and outside Japan about
the reliability and value of Japan’s A&S Board Members systemand establishing an effective system of corporate governance bypromoting knowledge about the role and mission of A&S Board
Members and making A&S Board Members more conscious of
their role and mission.

Initiatives of the Japan Audit & Supervisory Board Members
Association (JASBA)(1)We research the roles and functions of A&S Board Members andissue guidelines for conduct that meet the needs and expectationsof society, so that A&S Board Members can fully discharge theirresponsibilities.
(2)We offer A&S Board Members opportunities to deepen and increase
their knowledge and consciousness of their role, so that they canassist corporations in performing their corporate social
responsibility commitments and contribute to strengthening
corporate governance.
(3)We seek to propose the most effective form of corporate governancefor Japan through broad dialogue with society, in order to increase
the value of the A&S Board Members system.

3Supplementary Explanation regarding“Mission of Audit & Supervisory Board Members” and“Mission of the Japan Audit & Supervisory Board Members Association”

Mission of A&S Board Members
 “in our role in upholding corporate governance”
This phrase conveys that A&S Board Members bear key responsibility,
alongside corporate management, for strengthening corporate governance.

Guidelines for Conduct of A&S Board Members
 Item 1: “meet the expectations of all stakeholders”
This phrase conveys that A&S Board Members act for shareholders who
have entrusted them with responsibilities, and that A&S Board Members’
accommodation of the expectations of all stakeholders in a fair manner leads
in turn to increased benefit to shareholders.
 Item 2: “based on the principle of integrity”
This phrase conveys the basic approach of A&S Board Members in carryingout their auditing activities. In other words, integrity underlies A&S Board
Members’ quest to obtain sufficient and accurate information.

Mission of the Japan Audit & Supervisory Board Members Association
 “contribute to the creation of an affluent global community”
Now that the JASBA is a public interest incorporated association, it is evenmore strongly encouraged to develop ties with society.
This is also
indicated in its new articles of incorporation. This phrase conveys that theJASBA, as a member of society, will make appropriate contributions toJapanese society and also to the global community, in light of this new role
expected of the JASBA.
“developing the awareness of people both in and outside Japan, about thereliability and value of Japan’s A&S Board Members system”
The functions of Japan’s A&S Board Members system have been reinforced
by numerous revisions to laws and regulations applying to A&S Board4Members. At the same time, the expectations of society underlying such
legal revisions have continued to increase. This phrase expresses the resolveof the JASBA to actively explain that the A&S Board Members system hasearned great trust in terms of Japanese corporate practices and that thesystem has a substantial and adequate function, and to raise people's
awareness and understanding of the A&S Board Members system, with aview to reaching the wider global community.

Initiatives of the Japan Audit & Supervisory Board Members Association(JASBA)
 Item 1: “research the roles and functions of A&S Board Members”
Many aspects of the role of A&S Board Members are provided by law;however, the term “functions” refers to the actual impact that A&S Board
Members have on society by carrying out their role. The JASBA shallresearch what role A&S Board Members should play and consequently what
functions A&S Board Members should perform.
 Item 3: “through broad dialogue with society”
The JASBA shall proactively make recommendations and offer opinions onthe most effective system of corporate governance and the A&S BoardMembers system in Japan. Both in and outside Japan, the JASBA shallactively explain and raise people's awareness of the reliability and value ofA&S Board Members.

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