“Mission of Kansayaku ” and“Mission of the Japan Corporate Auditors Association”
September 29, 2011
Japan Corporate Auditors 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, Kansayaku must fully discharge their
responsibilities, with the aim of establishing solid corporate governanceso that corporations can be soundly managed while still continuing togrow.
The Japan Corporate Auditors Association (JCAA), a public interest
incorporated association, supports the work of Kansayaku to enablethem to meet the expectations of various stakeholders including
shareholders and the expectations of society, by carrying out theresponsibilities of Kansayaku as provided by law. The JCAA also has theimportant mandate of raising the awareness of people both in andoutside Japan, of the reliability and value of Japan’s Kansayaku system.
The mission statements set out in this document are intended to stateclearly the roles and mandates of Kansayaku and the JCAA and toconvey their resolve to carry out those roles and mandates effectively.

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Mission of Kansayaku
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 Kansayaku(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 Kansayaku with fairness and ingood faith based on the principle of integrity , the precepts
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 Kansayaku in a principled and professional manner andby being accountable in all circumstances.

2Mission of the Japan Corporate Auditors Association
We 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 Kansayaku systemand establishing an effective system of corporate governance bypromoting knowledge about the role and mission of Kansayaku
and making Kansayaku more conscious of their role andmission.

Initiatives of the Japan Corporate Auditors Association (JCAA)(1)We research the roles and functions of Kansayaku and issue
guidelines for conduct that meet the needs and expectations ofsociety, so that Kansayaku can fully discharge their
responsibilities.
(2)We offer Kansayaku opportunities to deepen and increase theirknowledge and consciousness of their role, so that they can assist
corporations in performing their corporate social responsibility
commitments and contribute to strengthening corporate
governance.
(3)We seek to propose the most effective formof corporate
governance for Japan through broad dialogue with society, inorder to increase the value of the Kansayaku system.

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Supplementary Explanation regarding“Mission of Kansayaku ” and“Mission of the Japan Corporate Auditors Association”

Mission of Kansayaku
 “in our role in upholding corporate governance”
This phrase conveys that Kansayaku bear key responsibility, alongsidecorporate management, for strengthening corporate governance.

Guidelines for Conduct of Kansayaku
 Item 1: “meet the expectations of all stakeholders”
This phrase conveys that Kansayaku act for shareholders who haveentrusted them with responsibilities, and that Kansayaku ’s accommodationof the expectations of all stakeholders in a fair manner leads in turn toincreased benefit to shareholders.
 Item 2: “based on the principle of integrity”
This phrase conveys the basic approach of Kansayaku in carrying out theirauditing activities. In other words, integrity underlies Kansayaku ’s quest toobtain sufficient and accurate information.

Mission of the Japan Corporate Auditors Association
 “contribute to the creation of an affluent global community”
Now that the JCAA 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 theJCAA, 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 JCAA.
“developing the awareness of people both in and outside Japan, about thereliability and value of Japan’s Kansayaku system”
The functions of Japan’s Kansayaku system have been reinforced bynumerous revisions to laws and regulations applying to Kansayaku .

4At thesame time, the expectations of society underlying such legal revisions havecontinued to increase. This phrase expresses the resolve of the JCAA toactively explain that the Kansayaku system has earned great trust in termsof Japanese corporate practices and that the system has a substantial andadequate function, and to raise people's awareness and understanding of theKansayaku system, with a view to reaching the wider global community.

Initiatives of the Japan Corporate Auditors Association (JCAA)
 Item 1: “research the roles and functions of Kansayaku ”
Many aspects of the role of Kansayaku are provided by law; however, theterm “functions” refers to the actual impact that Kansayaku have on society
by carrying out their role. The JCAA shall research what role Kansayaku
should play and consequently what functions Kansayaku should perform.
 Item 3: “through broad dialogue with society”
The JCAA shall proactively make recommendations and offer opinions on
the most effective system of corporate governance and the Kansayaku
system in Japan. Both in and outside Japan, the JCAA shall actively
explain and raise people's awareness of the reliability and value of
Kansayaku .

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