- 1. Long-Term Vision
- 2. Basic Management Policies for the Medium- to Long-Term
- 3. Corporate Governance
- 4. Risk Management
- 5. Research and Development
- 6. Intellectual Property
- 7. Corporate Social Responsibility
- 8. Human Resources
- 9. Finance
- 10. IR Activities
- 11. Marketing
1. Long-Term Vision
In February 2006, Teijin has set out its Management Vision of what it aspires to be in five to ten years and its Basic Management Policies. The Company is also exercising Group management from a long-term perspective, with an emphasis on building its sounder business portfolio and on pursuing research & development capabilities for new business creation.
- To attain global excellence
- To foster sustainable growth through chemical technologies and biotechnologies as well as business solutions
- To accelerate growth with new business creation
2. Basic Management Policies for the Medium- to Long-Term
Teijin has laid down Basic Management Policies for the Medium- to Long-Term, as the fundamental values and principles of conduct that should always serve as the basis for our operations when proceeding with Group management from a long-term perspective to help it achieve its Long-Term Vision.
- To seek to maximize corporate value
- To respond by seeking to maximize corporate value within the Teijin over the medium-to long-term to satisfy the expectations of stakeholders.
- To engage in management activities based on strategic conceptualization and risk management.
- To focus on sustainable development
- To aim for sustainable, progressive business development by maintaining high levels of customer satisfaction.
- To aim to achieve sustainable development by enhancing its corporate governance and fulfilling its CSR.
- To emphasize innovation
- To seek to create the innovative chemical technologies and business solutions expected of it by its customers and society.
- To accept the challenge to continually forge forward ahead new concepts.
3. Corporate Governance
Since 1999, we have implemented a series of groundbreaking management reforms with the aim of enhancing transparency, ensuring fairness and objectivity and accelerating decision making. These include establishing an Advisory Board, reducing the number of directors on the Board of Directors and introducing a corporate officer system and a compensation system for directors that is linked to consolidated return on assets (ROA), calculated using operating income. In 2003, we published the Corporate Governance Guide and resolved to strive for the further improvement and clarification of management mechanisms.
4. Risk Management
Total Risk Management
To facilitate organizational and systematic responses to the identification and comprehensive management of the various risks and uncertainties it faces, the Teijin has introduced Total Risk Management (TRM), which it continuously endeavors to reinforce.
We divide risk into two distinct categories: Strategic risk, that is, risk related to management strategies, and operational risk, which is risk related to the execution of business. Responsibility for addressing the former lies with the Chief Executive Officer (CEO), while the Chief Social Responsibility Officer (CSRO) is in charge of responding to the latter. The TRM Committee, which is positioned within the Board of Directors, facilitates comprehensive management of both types of risk.
The TRM Committee* is also charged with proposing and implementing action plans designed to further enhance the effectiveness of risk management.
In fiscal 2008, the Committee proposed action plans aimed primarily at enhancing risk management capabilities, ensuring management is based on superior corporate ethics, strengthening internal controls, reinforcing our ability to respond promptly to strategic risk, and strengthening the activity to promote the TRM policies in overseas Group companies.
TRM Committee* = A TRM Committee (Total Risk Management Committee) was established within the Board of Directors in 2003 to counter all uncertainties that could interfere with the activities in the Teijin Group. It consists of the CEO, CSRO, CTO, CFO, CHO and General Manager of Corporate Strategy Division. Strategic management risks and operating management risks are integrally managed, and serious risks will be dealt with swiftly.
Reinforcing Corporate Ethics and Compliance
Teijin believes that observing a strict code of corporate ethics and abiding by the law are essential core values for any corporate entity and has accordingly drafted rules of conduct, standards of conduct and corporate ethics guidelines.
Disclosure and Accountability
Recognizing that accountability is essential to securing effective corporate governance, we have set a coherent policy to guide our disclosure activities, which is to provide information to all stakeholders in a timely, fair, accurate and consistent manner.
5. Research and Development
Global R&D System
Recognizing technological innovation as the source of corporate growth, we continue to promote ambitious yet efficient investment in R&D with the aim of cultivating new businesses. We currently have eight major research sites in Japan and eight overseas, employing a total of more than 1,600 researchers. The Chief Technology Officer (CTO) is responsible for determining Groupwide R&D strategies, including those for basic research, and for reinforcing collaboration among Teijin companies to expedite the transformation of technologies into commercially viable products.
Focus on Four Key Fields
To ensure sustainable growth in each of our existing businesses, as well as to develop new businesses, we are taking steps to reinforce R&D capabilities-the wellspring of corporate competitiveness and creativity-and to focus the allocation of R&D resources in promising growth markets, which we have grouped into four key fields that we term Automobiles & Aircraft, Information & Electronics, Health Care and Environment, Water & Energy. The CTO works with the Chief Marketing Officer (CMO) to identify market needs and advance Groupwide, cross-business R&D projects.
6. Intellectual Property
From the twin perspectives of Group and global business development, the Teijin strives to create, protect and make effective use of its intellectual property. Teijin Intellectual Property Center Limited, an independent entity, spearheads the Group's intellectual property strategy, which is forged in close alliance-and implemented in an integrated manner-with its business and R&D strategies.
7. Corporate Social Responsibility
To realize the goals implied in its corporate philosophy-articulated by the phrases “Quality of Life,” “In Harmony with Society” and “Empowering Our People”-Teijin has formulated a basic policy for corporate social responsibility (CSR) and is promoting systematic, wellplanned CSR activities.
8. Human Resources
In line with its philosophy of “Empowering Our People”, the Teijin recognizes the importance of ensuring its employees are highly motivated. To this end, the Group strives to create a work environment that encourages personal growth and skill enhancement and has created a human resources development scheme to manage personnel in a way that respects individual lifestyles and values.
9. Finance
Having positioned the three years of our current medium-term management plan as a period of innovative growth, we are extending financial support to facilitate the reorganization of business portfolio and the cultivation of new businesses, hereby increasing corporate value.
A solid global financial system
One of the most crucial tasks facing any corporate entity is to secure access to stable, low-cost funds in a variety of currencies and ensure the efficient application of cash generated through operating and financing activities in its businesses. To these ends, the Teijin has established financial holding companies in the United States, Europe and Japan, which are responsible for ensuring the prompt and efficient procurement of funds in their various markets in a manner that complies with local regulations.
These financial holding companies invest in local Group companies, thereby positioning themselves to receive and reinvest dividend payments while filing consolidated income tax returns. In addition to the effective procurement of funds, the financial holding companies hold idle funds in reserve on behalf of Group companies, thereby helping them achieve greater financial efficiency.
Teijin also intends to establish financial holding companies in Southeast Asia and the PRC, where rapid regulatory change and improvements in financial infrastructures are creating an environment conducive to such a step. These companies will be similar in style to Teijin's holding companies in the United States and Europe.
10. IR Activities
Timely and accurate disclosure of management information and communication with investors
Teijin views the establishment of a relationship of trust with shareholders and investors as a management priority. In accordance with our policy of providing information in a timely, fair, accurate, clear and consistent manner, top management shall take the initiative in ensuring a faithful depiction of Teijin by promoting active disclosure and communication with shareholders and investors through coordinated IR, PR and advertisement activities.
Information that is not considered important under regulations or timely disclosure rules but is deemed to be of use to shareholders and investors shall be actively and fairly disclosed to the extent possible, irrespective of whether such information is advantageous or disadvantageous to us.
11. Marketing
Teijin's Chief Marketing Officer (CMO) spearheads efforts to strengthen marketing for the Teijin's various businesses. These efforts focus on promoting Groupwide marketing, reinforcing product development and sales capabilities to adapt to market change, cultivating new markets with a global perspective.
Stronger Groupwide marketing
Dedicated corporate officers and marketing managers for four promising fields-which Teijin refers to as Automobiles & Aircraft, Information & Electronics, Health Care and Environment, Water & Energy, where Teijin's technology and business development can be exploited, cooperate to promote a variety of Groupwide marketing initiatives.
These individuals collaborate closely with Teijin's chief technology officer (CTO) and other Group companies to ensure a coherent marketing approach. Efforts include organizing comprehensive technological demonstrations and seminars aimed at key prospective customers in each of the aforementioned fields.
Cultivating global markets
With the aim of strengthening Group-wide marketing, we have opened branches of our Marketing Office in PRC (Beijing and Shanghai), Russia and India. These offices support business groups, as well as gathering information and building a critical base of business development knowledge that enables us to provide a comprehensive and proactive approach to PRC on both the manufacturing and marketing fronts. As we proceed, we shall expand our efforts to include such promising markets as Russia and India.
