Mitsubishi 2004 Annual Report Download - page 6

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4
inadequate in terms of scope and time, leading to conditions that have inconvenienced our customers. When I was
appointed, I promised to resolve these issues through any means necessary. As of August 26, we had reported on all past
incidents of concealing recalls. We continue internal investigations into why recalls were concealed and, from the stand-
point of management transparency, will report on the findings of these investigations as soon as possible. According to
the results of our investigations, quality management at Mitsubishi Motors has followed the correct processes since
2000. I want to reiterate that the concealment of recalls is now an issue of the past.
PRIORITIZING COMPLIANCE IN A CHANGING CORPORATE CULTURE
We face the issue of how to change compliance and our corporate culture in order to prevent the reoccurrence of recall
concealment and similar problems. As the guiding principles of our revitalization, Mitsubishi Motors is prioritizing
compliance, safety and customer satisfaction. All of the directors at Mitsubishi Motors have already signed a declaration
promising to place compliance at the forefront of their activities. Organizationally, we newly established the CSR
Promotion Office to monitor the execution of the three guiding principles, and appointed Mr. Koji Furukawa, who
was the Chief Compliance Officer at Mitsubishi Corporation, to head the office. We also established the Business
Ethics Committee as an advisory function to the Board of Directors to externally monitor the activities of the CSR
Promotion Office. The Business Ethics Committee is chaired by Mr. Noboru Matsuda, formerly a senior public prose-
cutor and, until June 2004, governor of the Deposit Insurance Corporation of Japan.
Naturally, the creation of a new auditing organization alone will not change our corporate culture. I believe that
strict compliance and changes to our corporate culture are the most important points of the revitalization of Mitsubishi
Motors, and I will make every effort to successfully achieve these priorities by raising awareness of them within our
organization.
Earnings structure reform
Operating profit
Return to growth
-100
0
100
(¥ billions)
2004 2005 2006 2007
Reductions in fixed costs
Reductions in variable costs
Disposal of underperforming businesses
Ongoing effects of cost reductions
Product strategy
Regional strategy
Positive
Ordinary
Profit
Positive
Net
Income
GOALS TO BE ACHIEVED BY V-SHAPED RECOVERY