Omron 2015 Annual Report Download - page 21

Tateishi: No matter how much time and effort
you put into writing guidelines and policies, they
won’t function in practice without an essential
underlying spirit or soul. The Omron Principles
are the heart and soul of Omron as a company.
As we put true spirit into policies and rules, we
increase our value as a corporation. This is what
makes Omron the company that it is, and I be-
lieve this is one of our unique strengths.
Toyama： It’s the management structure, deci-
sions, and activities as a company that determine
whether corporate policies are just for show or
whether they are truly a part of the company.
Rules for the sake of rules, true intent, formali-
ties, and reality all have a reciprocal relationship.
Decisions that are mostly formality combined
with integrity of action can create a cycle that ties
directly to a company’s ability to earn. This cycle
results in policies and principles that ultimately be-
come a true part of the company. I think this cycle
is working very effectively at Omron today. But
companies should always innovate and reform,
― Please tell us more about your thoughts
on Omron’s sustained long-term growth.
Tateishi: As chairman of the board of directors,
I believe that we must use the Omron Principles
to connect the entire process from oversight
and supervision all the way through to busi-
ness execution, speeding up decision making
to enhance corporate value. As our internal and
external environment changes, I understand
that governance is not something that is ever
“finished.” We need to humbly keep working to
move forward and build higher levels of value. I
believe that one of the issues Omron is facing is
the globalization and diversification of our board
of directors. As the first step, we were privileged
to welcome Kuniko Nishikawa as the first-ever
female outside director at Omron in 2015. Ob-
viously, we will continue to address this issue in
more ways in the future.
Toyama： In terms of oversight and supervision,
my role is almost entirely in the sphere of mon-
itoring. However, since Omron is a company
with an audit and supervisory board, I am in-
volved in several important areas that affect the
company’s continuation as a corporation. Other
than that, I essentially keep out of the business
of executive decision-making. The CEO Selec-
tion Advisory Committee, where I serve as the
chair, makes decisions about the current CEO’s
performance as a manager, as well as about
appropriate future candidates for the CEO posi-
tion. I have the chance to form my own impres-
sions of different individuals through interaction
with candidates outside formal board meetings.
I had no reservations when we selected Yamada-
san as the next president of Omron. From
my own personal dealings, I knew he was a
Japan’s Corporate Governance Code at about that
same time. I remember thinking what a stroke of
good timing it was.
― As the chairman of the board of directors
and as an outside director, what do you
focus on in enhancing sustainable
corporate value? What issues do you see
ahead for Omron from your individual
perspectives?
person blessed with generous talents and a
well-suited personality. I do echo Tateishi-san
in saying that board of director diversity is an
issue for Omron. People of different genders
and nationalities bring different opinions to
the debate, which I believe can only lead to a
new, heightened awareness. Diversity among
executive officers is another challenge. A lack
of diversity on the board and among executive
officers results in less-constructive discussions
than could be generated otherwise. Diversity
sharpens deliberations and decisions. I am sure
that people of different nationalities, cultures,
and histories interpret the Omron Principles in
different ways. Reconciling and understanding
different social values creates a certain kind of
conflict that results in better ideas. If Omron
Corporation is to grow as a global company,
diversity on the board and among executives
is of particular importance.
“Omron Principles are
the basis that connects
oversight and supervision
all the way through to
business execution”
Fumio Tateishi
Kazuhiko Toyama
“Diversity in
management is one of
Omron’s challenges”
Special Feature 2: Toward Effective Corporate Governance
sustainable value at Omron. We identified several
issues, one of which was the conclusion that a
solely defensive approach to governance was
insufficient. We needed to employ a more active
style of governance and create even higher levels
of corporate value if we were to accomplish all of
the goals of our long-term vision (VG2020). Based
on these discussions, we embarked on a major
project to revise the Omron Principles, deter-
mined to embrace the Omron Principles in our
business to a level we had never fully achieved in
the past. Just by coincidence, the Japanese gov-
ernment began talking about establishing a
constantly monitoring this cycle. In my opinion,
Omron has been innovating and reforming in
terms of corporate governance for nearly 20
years. The ability to constantly evolve is perhaps
the most value intangible asset a company has.
We tend to let down our guard when the money
is rolling in, but companies that relax when things
are going well will inevitably backslide.
Tateishi: Omron will continue to focus on enhanc-
ing corporate value looking toward our 100th
anniversary and well beyond. We will continue to
work hard to earn the ongoing support and trust
of our shareholders and other stakeholders.
Special
Feature 2
38 OMRON Corporation Integrated Report 2015 39
About Omron Where We’re Headed Corporate Value Initiatives Corporate Value Foundation Financial Section