Bridgestone 2009 Annual Report Download - page 6

months ahead of schedule in order to meet the steady growth in
demand in this strategic market segment.
Going forward, we are positioning the Group to break away
from the current competitive environment, which is marked by
intense cost competition. In this way, we will transition to a
business model in which the Group will succeed relative to the
competition on the basis of its technical strengths.
In addition to enhancing our lineup of strategic products and
taking steps to reinforce our fundamental competitiveness, the
Group is effectively allocating its management resources in order
to take full advantage of the opportunity presented by the “once
in a century” changes in the global economy and our operating
environment. For example, we have taken steps to optimize our
manufacturing operations, including the closure of high-cost tire
manufacturing facilities in Australia and New Zealand, and the
realignment of the steel cord business in Europe and China. In
addition, we have taken steps to reduce inventories throughout
the entire supply chain, from raw materials to product inventories
in our retail outlets. Consequently, we have not only streamlined
inventories but also have made further improvements in our
inventory management capabilities. Furthermore, we have very
closely evaluated and prioritized our investments, and in some
cases deferred or eliminated spending on specic, less critical
projects, with the result that the Group has realized a leaner
management system.
Speed will be an important factor in our implementation of
these initiatives. By increasing our speed and agility in such areas
as decision making and implementation, we will enhance our
ability to anticipate change rather than simply react to it.
COMMITTED TO CSR ACTIVITIES
The objective of enhancing CSR (corporate social responsibility)
within the Bridgestone Group is to realize its corporate philosophy
—“The Bridgestone Way”—through activities that benet society
as a whole. The Group is committed to practicing CSR through
its actions, not just through its statements. I believe that the
effective management of corporations must include a strong
focus on CSR, and it is only through CSR that a corporation can
appropriately respond to the requirements and expectations of
society while improving its businesses.
In order to provide a “common language” and to ensure
consistency within the Group’s global CSR activities among its
more than 130,000 employees who operate in more than 150
countries, the Group has established “22 CSR Focus Points.”
Further details about our CSR activities can be found on pages
20–21, “The Bridgestone Group’s Approach to CSR Activities.”
SHAREHOLDER RETURNS
Bridgestone recognizes the interests of shareholders to be
of paramount importance to management, and our guiding
principle is to maintain stable, steady dividends as a direct
return of Bridgestone prots to shareholders. In the past, we
have maintained our dividend levels, despite uctuations in our
performance. For scal 2009, the Bridgestone Board of Directors
declared a year-end dividend of ¥8 per share, which—together
with the previously declared interim dividend of ¥8 per share—
resulted in an annual dividend of ¥16 per share.
Although, the global economic and business outlook
continues to be challenging, the Bridgestone Group remains
steadfastly committed to its goal of being the “World’s
undisputed No. 1 tire and rubber company in both name
and reality.” As we move forward, we will continue to do our
utmost to meet the expectations of our shareholders,
investors, and other stakeholders.
April 2010
Shoshi Arakawa
Chairman of the Board, CEO and President
wE wILL TRANSITION TO A BUSINESS MODEL
IN wHICH THE GROUP wILL SUCCEED RELATIVE TO THE COMPETITION
ON THE BASIS OF ITS TECHNICAL STRENGTHS.
04 Bridgestone Corporation