CSR – President's Message
Through initiatives that contribute to enhancing the quality of life in our society, we aim to achieve sustainable growth and prove worthy of our stakeholders’ trust.
Making social contribution the central goal of all our business activities
"The Mitsubishi Electric Group will continually improve its technologies and services by applying creativity to all aspects of its business. By doing so, we enhance the quality of life in our society." We abide by this corporate mission as the central goal of all our business activities. I myself joined the company in the 1970s, attracted by the large-capacity power generator that was built by Mitsubishi Electric, and felt immense pleasure in "providing light in countries where no electricity exists" through my duties as an engineer. The pride and confidence that I could be of help in improving people's lifestyles by developing infrastructure became the source of my efforts to "enhance the quality of life in our society."
Since being appointed President & CEO in 2014, I have used my visits to various business sites inside and outside of Japan as an opportunity to convey to our employees that "our mission is to contribute to countries and regions where we engage in business." This is precisely where a company's true significance lies; there is no meaning in simply increasing sales and profits. It is foremost important to provide products and services that society truly seeks and will be pleased with. Performance figures and other data will follow as natural outcomes.
Under this concept, our vision of the ideal company is of a "global, leading green company" that contributes to the realization of a prosperous society. Seeking global solutions to today's social issues, and running a well-balanced business from the three perspectives of "growth potential," "profitability and efficiency," and "soundness" to satisfy all stakeholders, including society, customers, shareholders, and employees by simultaneously achieving a sustainable society and providing safety, security, and comfort, represents the core of the Mitsubishi Electric Group's growth strategy.
Four CSR materialities for promoting CSR integrally with management
The Mitsubishi Electric Group positions corporate social responsibility (CSR) as the foundation of corporate management, and promotes the Corporate Mission and Seven Guiding Principles as its basic policies of CSR. To integrate the Group's CSR initiatives more closely with management initiatives and promote CSR over the long term, we have defined four CSR materialities in fiscal 2016.
The first is the realization of a sustainable society. Many of the products and services we provide contribute to energy conservation, and allow us to aim to become number one in the environment field. In fiscal 2016, we delivered a "power regeneration and harmonic loss reduction system with all-SiC modules for railway cars" to Odakyu Electric Railway Co., Ltd., and received the METI Minister's Award in the 36th Energy-Efficient Machinery Award in recognition of the system's ability to reduce the amount of railcar energy consumption by approximately 40%. We also delivered to Chugoku Electric Power Co., Inc. a hybrid battery system for installation in the Oki Islands. To solve the problem that renewable energies such as solar and wind power generation are readily affected by the weather and are unsuited to ensuring stable power supply, we are conducting a technical demonstration toward the stable utilization of renewable energies. Furthermore, our recycling initiatives and initiatives for reducing environmental burden are implemented from a global-scale perspective, and contribute to the environment by satisfying standards that go beyond those required by law in each country.
The second is the provision of safety, security, and comfort. The products and services we provide support people's affluent lifestyles in diverse areas, including the residential, security, and transportation sectors. The "technology for tsunami monitoring support using radar," which we succeeded in developing for the first time in the world, was placed in actual operation in fiscal 2016, and is contributing to preventing and mitigating disasters in coastal regions. With respect to the satellite business, which is one of our strong areas, high-accuracy positioning information provided by our quasi-zenith satellite system is contributing to enhancing safety precision toward the practical application of automated driving and ensuring proper maintenance management of social infrastructures.
The third is respect for human rights and the participation of diverse personnel. We are striving to create a workplace environment where employees can work actively while enjoying a good work-life balance at all stages of life, whether they are experiencing childbirth, raising a child, or providing nursing care to elderly family members. Furthermore, in response to the increasing numbers of foreign employees, we are working to diversify our personnel from a medium to long-term perspective, by creating workplaces where people with diverse backgrounds can work to their full potential. At the same time, the Mitsubishi Electric Group as a whole and all partners along our supply chain are taking action to promote respect for human rights based on international rules and regulations.
The fourth is the continued strengthening of corporate governance and compliance. With regard to corporate governance, we are implementing ongoing improvement measures, including initiatives for ensuring proper response to Japan's Corporate Governance Code. In the area of compliance, we adhere to the understanding that ethics and compliance are the fundamental precondition of our existence as a company, and pledge "not to establish a target or make a commitment that can only be achieved by taking action that would violate applicable laws, social ethics, or social norms." We also require all employees to strongly realize their responsibility of "not acting in violation of ethics and legal compliance" as a member of society, and to always act with a sense of ethics and pride several levels higher than what is commonly expected.
Through our sincere efforts to address these four materialities, we will endeavor to achieve our targets of achieving consolidated net sales of ¥5.0 trillion or more and an operating income ratio of 8% or more by fiscal 2021, the year that marks the 100th anniversary of the Mitsubishi Electric Group.
As a corporate group that pursues continuous innovation
Our corporate culture of "bringing about change always with an aim for something better" has supported the Mitsubishi Electric Group through its history of almost 100 years. The corporate statement "Changes for the Better," which we established in 2001, precisely expresses this culture, and is a favorite phrase of mine. The plural form of "Changes" is used, because there are many aspects and dimensions of change, and "Better" is used instead of "Best," because today's best is not necessarily tomorrow's best, and there is no end to innovation.
As observed in Darwin's theory of evolution, only those who can adapt to environmental changes are able to survive. In order for a company to develop amidst dramatic changes in its external environment, it must continuously pursue innovation in response to social expectations, and continue to be a presence that is needed by society. Society's trust in the Mitsubishi Electric Group— the belief that the products, services, and technologies we provide are necessary for a brighter future—allows us to enhance our business performance and secure outstanding human resources that wish to work with us, and will furthermore help us create an even more stable foundation for growth as a company.
All employees of the Mitsubishi Electric Group are expected to constantly take on new challenges without ever being content with the present. As a corporate group that manufactures a wide range of products for every sphere of life, from ordinary households to the realms of outer space, we are ideally suited to combining these products to create new values. This, however, will require greater exchange among various departments and stronger synergy among multiple business groups. Cross-border cooperation must also be strengthened among the roughly 140,000 employees of our Group who work throughout the world.
The Mitsubishi Electric Group will make continuous innovation a part of its efforts to achieve even higher growth as a leading global green company that contributes to the creation of a prosperous society where a "sustainable society" and "safety, security, and comfort" are simultaneously realized.
President & CEO