Sharp 2004 Annual Report Download - page 8

6Sharp Annual Report 2004
Raise management speed and facilitate effective
strategy execution
The structure of Board of Directors/Corporate Auditors
System at Sharp allows speedy decision making through
highly organized coordination between the board and each
business group. We plan to strengthen this system to further
expand our business and enhance corporate governance.
As for strategy execution and performance evaluation,
we have implemented a unique strategic management con-
trol system that incorporates the concept of a Balanced
Scorecard. This ensures that the concrete details of
Company-wide strategies are conveyed to all personnel,
right down to a fundamental operational level, thereby boost-
ing effective strategy implementation.
We always strive to further the development of our
employees, training the potential leaders of tomorrow and
encouraging them to raise their skill level and improve their
versatility. To this end, we are pushing forward with reforms
of our personnel system, centering on performance-oriented
remuneration, to raise the competencies and drive of our
employees.
Increase Corporate Value
Over the years, Sharp has worked to respond to global
calls for companies to enhance their efforts towards corpo-
rate social responsibility (CSR). We have always contributed
to the wellbeing of society through the creation of unique
products and services, and we pride ourselves on having
practiced eco-friendly business activities and having
engaged in various social activities. In October 2003, we
established the CSR Promotion Department to bolster these
efforts aimed at fulfilling social responsibility.
In order to generate continuous improvements in the
value of the Company in terms of profitability, shareholder
value and efficiency of capital utilization, we employ two main
financial performance indicators - return on equity (ROE) and
free cash flow. We will also continue to focus on controlling
return on investment in each business division based on
profit after capital cost (PCC), which is calculated by sub-
tracting the cost of invested capital from NOPAT (net operat-
ing profit after income taxes).
We ask all shareholders for their continued support as
we pursue the opportunities that lie ahead.
July 2004
Katsuhiko Machida
President