ESG Activities
Mabuchi Motor’s management philosophy, “Contributing to International Society and Continuously Increasing
Our Contribution,” embodies the wish to raise the extent of the Company’s contribution to society, and tocontinue being an indispensable company to the world, alongside the hopes that everyone who belongs to theMabuchi Group will “actively contribute to society through their work as a member of the Company,” “cherish notjust people but also nature and the environment, as well as the millions of other beings on the earth, and achieve
personal growth by coming to gain a sense of fulfillment not solely through material wealth.”
Following this philosophy, we are actively tackling the three perspectives that ESG presents.

SocialSEnvironment•	Environmental Measures
Required for Motors•	Contribution to Society
through Corporate Activities

Social•	Educational Support•	Manufacture of EnvironmentallyConscious Products•	Regional Support•	Production in Consideration ofthe Environment•	CSR Procurement•	Prevention of Global Warming

EEnvironment

G

Governance

Governance•	Basic Approach to Corporate Governance•	Contamination Prevention and Remediation•	Management Monitoring System•	Reduction and Recycling of Wastes•	Risk Management•	Thorough Compliance

Efforts to Achieve SustainableDevelopment Goals (SDGs)
The Mabuchi Group regards the SDGs as goals that the Group can achieve
along with economic growth that respects people. We will continue toactively engage in social and environmental activities to achieve these goals.

Sustainable Development Goals (SDGs)
These are international goals for a better world, adopted at the “UnitedNations Sustainable Development Summit” in September 2015, specifically,
17 goals and 169 targets to achieve for each goal. To reach the target by2030, action must be taken by all countries and people, as well as bycompanies.

The Mabuchi Group supports SDGs.

Various CSR activities

13MABUCHI MOTOR CO., LTD.

For details, please refer to the ESG information section on our corporate website:

https://www.mabuchi-motor.com/csr/

Annual Report 2019

Corporate Governance
Basic Approach to Corporate Governancemanner and to ensure accountability through the Board ofDirectors and the Audit & Supervisory Committee.

The Management Principle of MABUCHI MOTOR CO., LTD.
(the “Company”) is “Contributing to International Society
and Continuously Increasing Our Contribution” throughthe Company’s small motors business. The Company
understands that realizing this principle is the reason for its
existence. Corporate governance of the Company comprises
the organizational structure and managerial systems that
support the realization of its Management Principle andvarious management measures that maintain these systems.
Accordingly, the fundamental objective in establishing andimplementing an appropriate corporate governanceframework is to further the interests of shareholders andother stakeholders on an ongoing basis through the creationof fair profits and the enhancement of corporate value.
Constructing and maintaining a corporate governance systemalong the lines given below are indispensable for theCompany as a listed company:•	To clearly separate management decision making andefficient business execution, and to clarify the scope ofaccountability;•	To build and operate a sound internal control system;•	To appoint a suitable number of independent officers
whose interests do not conflict with those of shareholders
to ensure the objectivity and neutrality of management’ssupervision functions;•	To foster a corporate culture in which all employees
recognize and share the understanding that the practices ofcorporate ethics and compliance support the organization’ssocial impartiality and are fundamental to living up to thetrust and expectations of all stakeholders; and•	To disclose corporate information to shareholders andother stakeholders in an appropriate, fair, timely, and clear

Outline of Corporate Governance System andReasons for Its Adoption
On March 28, 2019, Mabuchi Motor adopted the structure of acompany with an audit and supervisory committee, with theaim of strengthening the supervision functions of the Board ofDirectors and speeding up management decision making bydelegating part of the executive decision-making authority todirectors. We also established the Nominating Committee andthe Remuneration Committee as discretionary advisory bodies
to the Board of Directors. As a pioneer in small, direct-current
electric motors, Mabuchi is constantly emphasizing thedevelopment of unique products and services and its
management organization and administrative structure, whileachieving growth through differentiation. In addition, we arestrengthening and enhancing corporate governance on an
ongoing basis, and have achieved efficient Group management
by establishing a structure for managerial and operationalexecution and a practical system of internal controls.
Specifically, we have appointed Outside Directors withhigh levels of independence and managerial experience,
while also establishing and operating multifaceted
management oversight systems that include audits by theAudit & Supervisory Committee, whose members include
directors with high levels of independence and expertise,management (internal) audits, and quality control audits. We
are also audited by an independent accounting auditor.
Through these systems, we maintain a disciplined
management organization and carry out appropriate risk
management and compliance throughout the Mabuchi
Motor Group.

General Meeting of Shareholders
Appoint/Dismiss

IndependentAuditors

LiaiseAppoint/Dismiss
Audit & Supervisory Committee

Appoint/Dismiss
Audit/
Supervise

Board of Directors

Director who is an Audit & Supervisory Committee member

Auxiliary

Command/Order
LiaiseAudit & Supervisory
Committee Department

LiaiseSupervise
DirectInternal Audit Department

Internal Reporting System

ReportAccounting Audit

ReportConsult/Report
Nominating
Committee
Remuneration
Committee

Representative Directors

LiaiseDiscussions

Executive Committee(Executive Managing Officers)

ExecutiveCompany Departments(Responsible for Compliance)

Internal Audit
Subsidiaries(One Director in Charge of Compliance)

For details, please refer to the corporate governance section on our corporate website:

https://www.mabuchi-motor.com/investor/management/governance.html 14