Omron 2013 Annual Report Download - page 25

46 Omron Corporation Integrated Report 2013 47
Where We're Headed
performance over such efforts. Nevertheless, I feel
that of foremost importance is the willingness to
formulate concrete targets to address risks and,
then, consider what must be done to realize these
targets. Such consideration can lead to ways of
installing business continuity measures with mini-
mal burden to operations. Moreover, this process
can also provide us with good opportunities to re-
view existing operations for other purposes.
—Recently, risks related to ESG*
issues have been gaining attention.
In what ways is Omron addressing
these issues?
Sakumiya: As businesses expand globally, the
potential for a company’s business activities to
impact the environment and society is ever rising.
In light of this situation, incorporating ESG consid-
erations into business activities and installing these
principles into the core of management strategies
is now more important than ever.
In fi scal 2012, one example of focus initiatives in
this area was our response to the confl ict mineral
issue. The act of procuring parts and materials in-
cluding such minerals for use in products can, albeit
indirectly, contribute to the violation of human
rights by supporting armed rebel groups in the
Democratic Republic of Congo in Africa. To avoid
the realization of this risk, corporate headquarters
divisions related to purchasing, legal affairs, and
CSR have been cooperating with business divisions
to investigate the situation regarding such minerals
and implement response measures as necessary.
* ESG: Environmental, Social, and Governance
—What issues must Omron address
going forward?
Sakumiya: Omron has constructed its foundation
for integrated global risk management. It will be
important to continue to enhance efforts in this
area going forward while applying the PDCA cycle.
Of particular importance will be improving activities
outside Japan. It is vital that each regional head-
quarters practice risk management in accordance
with the characteristics of their respective region.
Omron will include more information regarding its
risk management efforts in the Annual Securities
Report, on its website, and Integrated Report.
I also hope that Omron will incorporate the valuable
opinions of stakeholders into its management in
the future.
There are countless issues
to be addressed in the area
of risk management. For this
reason, it is necessary to
prioritize these issues and
continue to address them
in a systematic manner.
Akio Sakumiya
There are two main factors that have a signifi cant impact on a company’s
capacity to grow sustainably. One is the company’s ability to achieve har-
mony with society, or, in other words, the ability of the company to orient its
pursuit of profi tability to match social values.
Investors, consumers, and employees are all fundamental elements of
society. If a company is not in harmony with them, it will not be able to grow
over the long term. This is because a company’s most important customer
is society itself.
Harmony with society is imperative for any company. However, it is often
the case for companies that maintain harmony with society at home to not do
the same overseas. An important point of consideration for the future of a
company is its ability to cross national boundaries and overcome ethnic,
religious, and cultural differences to establish a shared set of values. I believe
that Omron, with its corporate core value of “Working for the benefi t of soci-
ety,” has done a very good job at internalizing this principle in its organization.
The other main factor affecting a company’s sustainability is the ability to
practice aggressive risk management. Companies must win out against
constant, fi erce competition. As such, a company that does not take risks
can only decline. At the same time though, a company that takes unneces-
sary risks is doomed to fail. What is needed is a style of management that
effectively controls risks and, then, takes those deemed necessary.
The success of risk management is hinged on the effective use of the
PDCA cycle. Companies do not have the option of being “risk free.” Rather,
they must maintain an understanding of the risks present and control these,
respond quickly to unforeseen circumstances, and, when the cycle has been
completed, decide what they will incorporate into the next spin. There is no
correct path in this process, and companies must continue to address these
issues as long as they exist. I feel that Omron has strong systems in place to
aid it in this undertaking.
If Omron continues to maintain harmony with the global society, while
building solid risk management systems and practicing aggressive risk
management, I am confi dent that the Company will continue to grow into
the future.
Kazuhiko Toyama previously held
positions at Boston Consulting
Group, Inc. He also helped found
and later served as President and
CEO of Corporate Direction Co.,
Ltd., Japan’s fi rst independent
management strategy consultancy.
In 2003, Mr. Toyama was appointed
Senior President and COO of the
Industrial Revitalization Corporation
of Japan at its inception, where he
successfully turned around 41
Japanese companies. In April 2007,
he founded Industrial Growth
Platform, Inc., which provides
management support services
focused on realizing long-term
sustainable business operations
and elevating corporate value.
Mr. Toyama currently serves as
a Vice Chairman of the Japan
Association of Corporate Directors
and a Vice Chairperson of the Japan
Association of Corporate Executives.
Outside Director
Kazuhiko Toyama
President and CEO of
Industrial Growth Platform, Inc.
Sustainable Growth
and Aggressive
Risk Management
Evaluation of Omron’s Risk Management
by an Outside Director