As Japan is strongly urged to implement the growth strategy, Japan's Corporate Governance Code has been developed and the adoption of Japan's Stewardship Code has been on progress. Both of them require full accountability, which will be realized by integrated reporting and other corporate reporting tools. In the era of global competition, Japanese companies are expected to have in-depth dialogue with investors, which is sometimes tense but yet collaborative, to show company policies and initiatives to enhance "the ability to earn" and create medium-to-long-term sustainable value at the same time. The International Financial Reporting Standards ("IFRS") and other aspects of "accounting" will continue to be one of the effective means for such dialogue, but the effectiveness of non-financial information such as ESG (Environment, Social and Governance) is currently drawing attention.
We, PwC, are making an all-out effort to improve the audit quality and strengthen human resources to contribute to the sound growth and development of the economic infrastructure and capital markets in Japan, and to the maintenance and improvement of their credibility as well.
PwC defines the purpose of PwC Network as, "Build trust in society and solve important problems". With the strength of the various expertise and experience of more than 195,000 people in the PwC Network that are branched out in 157 countries, as well as with the co-operation of advisory and tax specialists in the network, we, PricewaterhouseCoopers Aarata, are committed to gain trust from the market and provide value to globally-active Japanese companies.
In order to secure adequate human resources to achieve our purpose, we have established a framework which shows the direction to be pursued by our people. Specifically, we have defined five aspects of professional competency which we are expected to have: technical capabilities, which constitutes a basis to secure audit quality; business acumen, global acumen and relationships, which are necessary to conduct audit and advisory engagement with deep insight; and whole leadership which drives the delivery of value out of the above.
Further, we are focusing on taking full advantage of technology, which we believe is the most efficient tool for the provision of professional services. We are also committed to improve our business acumen to understand the nature of businesses and provide valuable insight to our clients, so that our audits achieve higher quality and become a more attractive professional service.
As our name "Aarata" ("new" in Japanese) suggests, we are committed to keep trying every new endeavor to be a truly valuable and trusted partner for all of our stakeholders. We look forward to working with you.
January 5, 2015