7. Creating a Bright Society
1997-
(2) Protecting the Earth and Life
- 2013
- In 2013, DENSO introduced a new “Long-Term Policy” aimed at proactively responding to societal expectations in a manner befitting the company's scale. This comprehensive management compass was developed to guide the company in addressing these challenges effectively.
Following the economic recovery efforts post-Lehman Shock, which took about three years, DENSO was poised for further growth. It was the right time to outline the next strategic management direction.
- Deep DiveFormulation of the 2020 Long-Term Policy
- To solidify the core of the new Long-Term Policy, DENSO began with the “accumulation of the collective wisdom of all executives.” In September 2012, an Executive Discussion Meeting was held, where intensive discussions took place over the course of a full day. The discussion themes were “the vision for the DENSO Group by 2020” and “key points for Transformation” to achieve that vision, with various proposals being made.
For the formulation of this long-term policy, DENSO introduced a novel approach by involving a global team of 17 members gathered from different regions around the world. This global team contributed to the examination of the new vision's core elements. Each member brought the results of discussions held in their respective regions, and together they debated and consolidated their proposals on “the vision DENSO aims to achieve.” This initiative aimed to clearly convey that the new vision was a global policy, enriched by the collective wisdom from around the world.
In January 2013, President Nobuaki Kato announced the “DENSO Group 2020 Long-Term Policy.” Previously referred to as “Principles” or “Vision,” this time the strategic compass was named “Long-Term Policy” to clearly indicate the company's future initiatives.
Reference：Overview of 2020 Long-Term Policy
The slogan of this Long-Term Policy was “Protecting Lives, Preserving the Planet, and Preparing a Bright Future for Generations to Come.” Under this slogan, DENSO committed to minimizing the environmental impact of automobiles to achieve “sustainable growth while maintaining the global environment.” Additionally, the company focused on preventing tragic traffic accidents to ensure “a society where everyone can live happily, safely, and securely.”
Historically, DENSO had a passive stance, often following the directions of car manufacturers, and its significant corporate scale did not necessarily translate into a strong sense of social responsibility. There was also a concern that DENSO's strong inclination towards in-house production led to a lack of trust in other companies, resulting in a limited and insular approach.
To genuinely implement this Long-Term Policy, it was crucial to transform these traditional mindsets and approaches. Moving forward, DENSO aimed to become a company that “actively takes on social responsibility, engages proactively with society, aligns its aspirations with partners, and works towards creating a new society.”
While previous Principles and Visions served as compasses to respond to drastic changes in the management environment or to achieve growth-oriented future visions, the new Long-Term Policy focused on “how to meet societal expectations.”
The main theme was understanding what is required of DENSO, which had already become one of the world's leading companies, and defining its role in contributing to society. This Long-Term Policy was a management compass developed based on a thorough understanding of societal issues and expectations.