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Study
on the Utilization of Mission Statements and Corporate Creeds
(June 24, 2004)
Media Center |
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The
JPC-SED Media Center announced the results of its Study on
the Utilization of Mission Statements and Corporate Creeds.
This survey was jointly conducted by the JPC-SED and the Waseda
University Research Institute of Business Ethics (Professor
Shunji Kobayashi, Director) to study the corporate creed and
management principles of various companies in Japan as of
July 2003. It also aimed to examine how companies apply their
corporate creed, management principles, and mission statement
to their business activities in today’s rapidly changing
management environment. The overview of the study is as presented
below.
One in every four companies has revised its corporate creed
during the past five years.
Establishment and modification of management principles or
corporate creeds |
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26%
of all companies surveyed have revised their corporate creed
after 1998. Specifically, these include stylistic changes
involving word endings and the use of more easily understood
words, as well as major changes, such as the addition of clauses
regarding environmental consideration, rewriting of the content
to correspond to the times, and renewal due to business mergers.
Changes in corporate creed are by no means made frequently,
but they are apparently being revised in response to changes
in the competitive environment and in business activities.
Corporate creeds are not necessarily turning into insubstantial
legacies of corporate establishment, nor are they being treated
lightly. In fact, they weigh heavily as something that has
profound influence on business activities.
In both the manufacturing and non-manufacturing sectors, a
large proportion of companies have revised their corporate
creed after 2000. This trend is assumed to have been influenced
by the succession of corporate scandals that occurred during
this period as well as by the increase in environmental awareness.
Most companies advocate “harmonious coexistence with
society” and emphasize “customer-oriented”
services.
Major focuses of management policies and corporate creeds |
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| Rank |
Score |
Focus
of management policy or corporate creed |
Included |
Emphasized |
Not
included |
| 1 |
549 |
Customer-oriented
services |
259
(50.9%) |
145
(28.5%) |
105
(20.6%) |
| 2 |
466 |
Harmonious
coexistence with society |
298
(58.5%) |
84
(16.5%) |
127
(25.0%) |
| 3 |
355 |
Challenges |
249
(48.9%) |
53
(10.4%) |
207
(40.7%) |
| 4 |
319 |
Pioneer
spirit, innovations, creativity |
217
(42.6%) |
51
(10.0%) |
241
(47.3%) |
| 5 |
281 |
Respect
for employees |
219
(43.0%) |
31
(6.1%) |
259
(50.9%) |
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| Note:
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“Emphasized”
and “Included” were calculated as 2 points
and 1 point, respectively |
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Management
policies and corporate creeds were found to include “harmonious
coexistence with society,” “customer-oriented services,”
“challenges,” and “respect for employees”
in order of frequency. These focuses are included in 58.5%,
50.9%, 48.9%, 43.0% of management policies and corporate creeds,
respectively, and showed similar rates of inclusion. A large
difference did appear, however, in their emphasis. 28.5% of
companies emphasize “customer-oriented services,”
while only 16.5% emphasize “harmonious coexistence with
society” and only 10.4% emphasize “challenges.”
This was an extremely significant finding in the respect that
the recent rise in corporate awareness of customer-oriented
services is objectively supported by management policies and
corporate creeds.
It is also interesting to note that “respect for employees”
is emphasized by only 6.1% of companies. Given the high level
of interest in human resources in recent years, this figure
is extremely low. If the recent high interest in human resources
continues, “respect for employees” will likely be
included in a larger proportion of management policies and
corporate creeds in future.
In terms of the overall score, the top four focuses, in order
of highest score, were “customer oriented services,”
“harmonious coexistence with society,” “challenges,”
and “pioneer spirit, innovations, creativity.”
Over half the companies surveyed have some form of rules
concerning corporate ethics.
Rules of conduct related to corporate ethics |
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It
was found that 329 companies, corresponding to 65.3% of all
responding companies, have rules of conduct related to corporate
ethics. This result is a clear indication that companies have
a high level of interest in corporate ethics and are committed
to observing them.
Interestingly, 52.8% of the companies having rules of conduct
related to corporate ethics have established those rules after
2001. This is true for both the manufacturing and non-manufacturing
sectors. It also corresponds to the urgent demand for companies
to adhere to strict ethical actions in response to the rash
of corporate scandals that have occurred in recent years.
Efforts to ensure employee compliance with the rules of conduct
included “distribution of internal publications and leaflets”
(45.2%), “installation of an ethics committee” (43.1%),
and “education through daily activities” (39.3%).
Judging from the large proportion of companies that have installed
a dedicated committee or other official organization, it is
apparent that companies are placing large importance on ensuring
the strict adherence to rules of conduct related to corporate
ethics. |
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