Ricoh 2014 Annual Report Download - page 39

Overview Action Data & Prole
Governance
ISO 26000: • Organizational governance • Fair operating practices
Ricoh Group Sustainability Report 2014 38
In my capacity as the head of a major corporation, I conduct business fully aware of corporate social responsibility,
placing emphasis on the workplace and global teamwork in a tough and rapidly changing business environment that
has included the global nancial crisis, the Great East Japan Earthquake and the extremely strong yen. From experience,
I believe it is important for top management to remember the following three points:
First, “Initiate communication with employees and business partners.” This requires management to convey cur-
rent issues as well as the company’s charted course and strategies directly to employees and business partners and
thereby align all corporate activities in the same direction. Second, “Never put off dealing with risks.” When risk comes
to light, it must be reported immediately, and measures—immediate and thorough—must be taken to prevent
recurrence. Third, “Top priorities: safety, environment and compliance.” To create this kind of corporate culture, the
priorities must become part of daily operations. For example, reports might start off with a description of safety,
environmental and compliance issues before moving on to business performance.
I intend to continue with constructive participation at Board meetings as an outside director so that I can contribute
to enhanced corporate value at Ricoh.
Mr.NojiwaspresidentandCEOofKomatsuLtd.Hehasabundantexperienceandexpertiseasamemberoftopmanagementofoneoftheleading
companies in Japan. We believe that this wealth of experience and knowledge will greatly benefit our decision-making process, and Mr. Noji will be
abletoofferususefuladviceandcounselfromanindependentperspective.Heattendedall11Boardmeetingsheldinfiscal2013.
After some eight years in management at a major corporation, I took a position as an instructor at the Tokyo University
of Science Graduate School of Innovation Studies. All my students are already in the workforce and belong to various
industries, so lectures and seminars are greater opportunities for me to learn a little about a lot of companies. From
this perspective, I see Ricoh as a company specializing in ofce equipment, particularly copiers. I liken it to a company
in a amingo pose, so to speak—a company balanced on one business leg. For these companies, the management
issue of greatest importance is to work out strategies to strengthen and develop this one-leg business and then steadily
implement the necessary steps.
In reviewing many corporate histories, I have found evidence of longevity in a single business. But to ensure longevity
in one business, a company must be able to embrace change. For 40 years in the latter half of the 20th century, cathode-
ray tubes were essential to television manufacturing, but today they have been entirely superseded by liquid crystal
panels. Consequently, industry players are completely different from those in the past. Companies must always be ready
for the appearance of disruptive technology. No company can stand on a single leg, not indenitely, anyway. Manage-
ment should not avoid investing in a complementary pillar of operations. It will be my role to actively suggest approaches
to the Board of Directors to channel investment into the right R&D pursuits and the right technology acquisitions.
Mr. Azuma was senior vice president and executive officer and CTO (chief technology officer) of Toshiba Corporation and is currently a professor at Tokyo University
of Science Graduate School of Innovation Studies. His wealth of knowledge regarding technology strategy and managerial expertise will help shape and integrate
our decision making and guide our efforts with an objective, expert perspective.
Comments from Outside Directors
Kunio Noji
Dateofbirth:November17,
1946
Director (outside)
- Member of Nomination and
Compensation Committee
Since June 2012
(Currently)
ChairmanoftheBoard,
Komatsu Ltd.; Outside
Director,NECCorporation
Makoto Azuma
Date of birth: May 25, 1945
Director (outside)
- Member of Nomination and
Compensation Committee
Since June 2014
(Currently)
Professor, Graduate School of
Innovation Studies, Tokyo
University of Science;
Advisory Professor, Tsing Hua
University (China)
Master the “flamingo pose” but work on building another leg to stand on, too
In today’s business environment, there are a number of companies that operate with a sense of speed and dynamism
and there are just as many that race ahead in bursts of explosive movement seeking immediate gains rather than
permanence and stability. Both of these approaches, however, are completely different from the way most Japanese
companies operate. Globalization has all these companies seeking to survive through competition and cooperation in
various places all over the world.
Ricoh’s Board of Directors pursues free and open-minded discussions, albeit in an ultra-alert environment, and I
feel the supervisory function is working well. As an outside director, I always strive to provide a perspective that might
be difcult to see from the inside. I consider issues from a shareholder’s perspective while keeping world affairs and
the operations of rival businesses in mind. I identify the substance behind every proposal submitted to the Board and
pose questions on issues that I believe require attention.
Ricoh has established solid core businesses over many years. But it is time for the company to reinforce the corpo-
rate foundation by honing these businesses to an even greater degree and by working toward the creation of new core
businesses. From experience, I know a key ingredient for success is decision making based on different concepts. An
external perspective is extremely vital in this regard as well.
Mr. Umeda has advanced knowledge of information technology and experience in global business. This gives him expert ability to analyze our decision-making
processandoffervaluablerecommendationsfromanoutsideperspective.Heattended10outof11Boardmeetingsheldinfiscal2013.
Externalperspectivevitalincreatingnewcorebusinesses
Mochio Umeda
Date of birth: August 30, 1960
Director (outside)
- Member of Nomination and
Compensation Committee
Since June 2010
(Currently)
President,MUSEAssociates,
LLC. (U.S.A.); Managing
Director, Pacifica Fund I, LP.;
Outside Director, ASATSU-DK
INC.; Representative Director
andPresidentofMUSE
ASSOCIATESINC.;Director,
βinnovation, Co., Ltd.
Three points to remember to ensure sustainable growth and higher corporate value