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Internal Control System

Kubota's internal control system is a mechanism for clearly providing the rules that should be obeyed during the performance of business and for checking whether or not business has been managed according to those rules. This system is composed of "business management", which oversees business activities based on the rules, and "risk management," which controls important management risks.
"Business management" refers to the action of specifying the basic matters for managing the business by the "business rules", and each department implementing daily checks based on these business rules in order to manage the work. "Business rules" are consisted of common business rules (basic issues) and functional business rules.
"Risk management" refers to the action of specifying issues that department in charge who manages each risk should respond by the "risk management rules", establishing the matters to be promoted for managing such a risk, and confirming the efficacy of such risk management by implementing a departmental audit.
Kubota's internal control system classifies the company's major management risks into the following three categories.

  • ① Internal control over financial reporting
  • ② Internal control related to basic corporate functions such as fair trade, environmental conservation, health and safety, etc.
  • ③ Internal control concerning compliance with equipment-related statutes and import and export control, etc.

The department in charge takes necessary measures to avoid these risks, audits the divisions, and reports the results of the audit and recommends measures to be taken in the next fiscal year to the President and the Board of Directors. In so doing, the section ensures that the PDCA cycle is implemented properly.
We launched an internal control system in April 2007. While the system was implemented only in Kubota Corporation in FY 2008, it was introduced to domestic affiliates in FY 2008. From FY2009 and on, we will further expand the coverage of the system to include our overseas subsidiaries. The internal control over financial reporting has been in place both at Kubota Corporation and at domestic and overseas subsidiaries since FY 2008.

Internal Control System

Internal Control System Img

Risks and departments in charge for the internal control system

Risk description Department in charge
Internal control concerning reliability of financial reporting
Reliability of financial reporting Finance & Accounting Dept., Corporate Auditing Dept.
Internal control concerning basic corporate functions
Fair trade Legal Dept.
Environmental conservation Environmental Protection Dept.
Health and Safety Health & Safety
Promotion Dept.
Quality control Quality Assurance
Promotion Dept.
Human resource management Human Resources Dept.
Information security Global IT Managment Dept.
Intellectual property Research & Development Management Dept.
Risk description Department in charge
Internal control concerning compliance
Compliance with equipment-related laws Manufacturing Engineering Promotion Dept.
Earthquake and other disaster response management General Affairs Dept.
Compliance with the Construction Business Law General Affairs Dept.
Human rights advancement Human Rights Advancement Dept.
Safe driving management General Affairs Dept.
Prevention of illegal payment Corporate Compliance Dept.
Classified information management Corporate Compliance Dept.
Protection of personal information Legal Dept.
Security trade control Legal Dept.
Import and export control Legal Dept.
Compliance with distribution-related laws Manufacturing Engineering Promotion Dept.

List of internal rules and regulations

  • Click to enlarge

Related Information

Kubota's research and development values thorough hands-on approach. As an agricultural and water expert, we challenge and attain the future of food, water, and the environment, realizing our customer’s needs.

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