Corporate Governance at Miki Sangyo
With our management philosophy of ‘discipline and order’ and ‘Edo-ten shikiho – Edo store manners’ as our norm, we are strengthening our employee work regulations and internal control.
We have established the Internal Audit Office as an organization under the direct control of the president, and we are promoting the strengthening of internal control.
Regarding the operation of overseas subsidiaries, while respecting the independence of the local side, we are thoroughly implementing the management philosophy based on “discipline and order” in the same way as the head office, and are working to control it.
Based on the spirit of internal control and system compliance stipulated in the formula, we are thoroughly strengthening internal control through compliance with “discipline and order” while responding flexibly to the ever-changing external environment.
Business road of Miki Sangyo
-Edo-ten shikiho (Edo store manners)-
The Edo store in Honzaimokucho, Edo, had the ‘Edo-ten shikiho’ that legalized its management and sales tactics. This formula was enacted in October 1800 (Kansei 12) as the main text, and then added “Appendix” and “Definition” and consisted of 42 articles in 3 parts. This is a set of rules to ensure that even a store in a remote location, out of sight of the owner, can be managed without error, and it is said that this formula was also observed at the main store. At the same time, a system called “rotation”, which corresponds to today’s corporate auditors, was established to strictly check for excessive management errors, mistakes, and fraud.
The fact that the head of the Miki family has valued such discipline and rules for generations can be seen from the fact that there are traces of corrections and corrections made by the head of the family in the records. In June 1976 (Showa 51), the current company regulations, which were significantly revised, incorporate many of the old management spirits.
Edo-ten shikiho main provisions (excerpt)
・The manager should check the accounting books with his own eyes three times a month.
・Customers should visit at least once a year, and the manager should also visit
・Operate the store according to the head family’s orders
We are promoting the construction of a system that allows operations to continue without delay even in emergency situations such as natural disasters and new virus response.
Specifically, we are working on complementing and sharing the other departments’ operations and information, delegating settlement authority at overseas subsidiaries, digitizing order processing to support other sites, and standardizing specifications.
We started our efforts with hearings about the risk management system in 2021. We have set five milestones by 2024, and are steadily developing the system.