Honda Motor Company Management Policy
Thread Starter
Joined: Oct 2000
Posts: 2,675
Likes: 0
From: Fairfield County
I'm a shareholder in Honda Motor Company (HMC) and just received their "Interim Business Report for the First-Half Term (Six Months Ended September 30, 2000) of the 77th Fiscal Period" in the mail.
I thought some of you might be interested in their stated management policy. Here it is:
----------------- MANAGEMENT POLICY -------------------
"Honda Motor Co., Ltd.'s business activities are based on fundamental corporate philosophies, which are 'Respect for the Individual' and 'The Three Joys.'
'Respect for the Individual' defines Honda's relationship with its associates, business partners and society. It is based on sharing a commitment to initiative, equality and mutual trust among people.
It is Honda's belief that everyone who comes in contact with Honda's activities will gain a sense of satisfaction through the experience of buying, selling or creating our products and services. This philosophy is expressed as 'The Three Joys.'
With these corporate philosophies as the foundation, Honda's business is guided by the following Company principle:
'MAINTAINING A GLOBAL VIEWPOINT, WE ARE DEDICATED TO SUPPLYING PRODUCTS OF THE HIGHEST QUALITY YET AT A REASONABLE PRICE FOR WORLDWIDE CUSTOMER SATISFACTION.'
Honda actively works to share a sense of satisfaction with all of its customers, importantly including shareholders, to continue to improve its corporate value.
o MANAGEMENT ORGANIZATION
Honda has long undertaken such proactive measures as appointing independent board members and independent auditors in consideration of improving corporate governance.
Honda has established a global organization in which its operations are divided into five geographic regions worldwide to enable management to respond quickly to the changing needs of customers in each region. Through this system, which is also based on the aforementioned corporate philosophies, Honda is taking a long-term perspective, cooperating with the local communities where it does business to create mutual beneits. The goal is to become a company that society wants to exist. Honda will strive to reflect its market-focused efforts to develop quicker and more accurate responses to changes in local needs.
Honda's four business operations--motorcycles, automobiles, power products, and spare parts--formulate medium- and long-term plans for business development in individual product categories, and each operation aims to maximize its business performance on a global basis.
Honda's administrative operations coordinate the entire organization to optimize the allocation of business resources. These eforts are aimed at increasing Companywide efficiencies.
For investors and shareholders, Honda's basic policy emphasizes the disclosure of financial results on a quarterly basis as well as the timely and accurate disclosure of its management strategies through the mass media. Honda will remain committed to such disclosures in the future.
o DIVIDEND POLICY
The Company considers redistribution of profits to shareholders as one of the most important management issues. Accordingly, the Company attempts to increase its corporate value while carrying out its operations from a global standpoint.
The Company intends to redistribute profits to shareholders, with regard to its projected comprehensive cash needs/requirements, and make distribution payments, taking into account the Company's consolidated earnings performance over the long term.
In consideration of shareholders' expectations, retained earnings will be applied toward financing the R&D activities that are essential for the future growth of the Company and capital expenditures and investment programs that will expand its operations for the purpose of improving its business results and strengthening its financial condition. The application of retained earnings toward such purchasing and retiring of the Company's shares will remain open for consideration.
o PREPARING FOR THE FUTURE
Honda recognizes that, as part of its intention of improving its product competitiveness and corporate structure to respond with speed and flexibility to changes in customers' needs, it is essential to deal effectively with the following issues:
-Enhancement of R&D capability
-Enhancement of production efficiency
-Enhancement of sales efficiency
-Preservation of the global environment
-Advancement of safety-related technologies
1. ENHANCEMENT OF R&D CAPABILITY:
Together with efforts to develop environmental and safety technologies, Honda intends to create products that have new value and match respective needs in the global market. Aiming to improve efficiency and shorten development time, Honda will make the best use of information technology (IT).
2. ENHANCEMENT OF PRODUCTION EFFICIENCY
To accurately respond to the diverse needs of customers, Honda will establish efficient and flexible production systems globally, which are expected to enable the production of a greater variety of Honda's high-quality products and shorten the lead time required for the start-up of new models.
3. ENHANCEMENT OF SALES EFFICIENCY
Honda will upgrade its sales network to improve customer-focused activities.
Honda also aims to make its sales information system more convenient and effective for customers utilizing IT.
4. PRESERVATION OF THE GLOBAL ENVIRONMENT
Honda will proactively extend clean and fuel-efficient engine technologies to its entire product lineup. In the area of production activities, Honda promotes recycling and other environmental preservation activities on a global scale under its 'Green Factory' concept.
5. ADVANCEMENT OF SAFETY-RELATED TECHNOLOGIES
In the area of highly crashworthy car body technologies, Honda studies and analyzes traffic accidents at its indoor omnidirectional car-to-car crash test facility, with the aim of producing vehicles that can withstand 'real world' traffic accidents. Honda also conducts research and development in technologies to protect pedestrians from injuries. Honda proactively conducts traffic safety programs, including car driver and motorcycle rider education, as an important part of its comprehensive efforts to contribute to traffic safety in a motorized society.
Honda will continue to improve these acivities to reach its goal of becoming the kind of company that society hopes for."
I thought some of you might be interested in their stated management policy. Here it is:
----------------- MANAGEMENT POLICY -------------------
"Honda Motor Co., Ltd.'s business activities are based on fundamental corporate philosophies, which are 'Respect for the Individual' and 'The Three Joys.'
'Respect for the Individual' defines Honda's relationship with its associates, business partners and society. It is based on sharing a commitment to initiative, equality and mutual trust among people.
It is Honda's belief that everyone who comes in contact with Honda's activities will gain a sense of satisfaction through the experience of buying, selling or creating our products and services. This philosophy is expressed as 'The Three Joys.'
With these corporate philosophies as the foundation, Honda's business is guided by the following Company principle:
'MAINTAINING A GLOBAL VIEWPOINT, WE ARE DEDICATED TO SUPPLYING PRODUCTS OF THE HIGHEST QUALITY YET AT A REASONABLE PRICE FOR WORLDWIDE CUSTOMER SATISFACTION.'
Honda actively works to share a sense of satisfaction with all of its customers, importantly including shareholders, to continue to improve its corporate value.
o MANAGEMENT ORGANIZATION
Honda has long undertaken such proactive measures as appointing independent board members and independent auditors in consideration of improving corporate governance.
Honda has established a global organization in which its operations are divided into five geographic regions worldwide to enable management to respond quickly to the changing needs of customers in each region. Through this system, which is also based on the aforementioned corporate philosophies, Honda is taking a long-term perspective, cooperating with the local communities where it does business to create mutual beneits. The goal is to become a company that society wants to exist. Honda will strive to reflect its market-focused efforts to develop quicker and more accurate responses to changes in local needs.
Honda's four business operations--motorcycles, automobiles, power products, and spare parts--formulate medium- and long-term plans for business development in individual product categories, and each operation aims to maximize its business performance on a global basis.
Honda's administrative operations coordinate the entire organization to optimize the allocation of business resources. These eforts are aimed at increasing Companywide efficiencies.
For investors and shareholders, Honda's basic policy emphasizes the disclosure of financial results on a quarterly basis as well as the timely and accurate disclosure of its management strategies through the mass media. Honda will remain committed to such disclosures in the future.
o DIVIDEND POLICY
The Company considers redistribution of profits to shareholders as one of the most important management issues. Accordingly, the Company attempts to increase its corporate value while carrying out its operations from a global standpoint.
The Company intends to redistribute profits to shareholders, with regard to its projected comprehensive cash needs/requirements, and make distribution payments, taking into account the Company's consolidated earnings performance over the long term.
In consideration of shareholders' expectations, retained earnings will be applied toward financing the R&D activities that are essential for the future growth of the Company and capital expenditures and investment programs that will expand its operations for the purpose of improving its business results and strengthening its financial condition. The application of retained earnings toward such purchasing and retiring of the Company's shares will remain open for consideration.
o PREPARING FOR THE FUTURE
Honda recognizes that, as part of its intention of improving its product competitiveness and corporate structure to respond with speed and flexibility to changes in customers' needs, it is essential to deal effectively with the following issues:
-Enhancement of R&D capability
-Enhancement of production efficiency
-Enhancement of sales efficiency
-Preservation of the global environment
-Advancement of safety-related technologies
1. ENHANCEMENT OF R&D CAPABILITY:
Together with efforts to develop environmental and safety technologies, Honda intends to create products that have new value and match respective needs in the global market. Aiming to improve efficiency and shorten development time, Honda will make the best use of information technology (IT).
2. ENHANCEMENT OF PRODUCTION EFFICIENCY
To accurately respond to the diverse needs of customers, Honda will establish efficient and flexible production systems globally, which are expected to enable the production of a greater variety of Honda's high-quality products and shorten the lead time required for the start-up of new models.
3. ENHANCEMENT OF SALES EFFICIENCY
Honda will upgrade its sales network to improve customer-focused activities.
Honda also aims to make its sales information system more convenient and effective for customers utilizing IT.
4. PRESERVATION OF THE GLOBAL ENVIRONMENT
Honda will proactively extend clean and fuel-efficient engine technologies to its entire product lineup. In the area of production activities, Honda promotes recycling and other environmental preservation activities on a global scale under its 'Green Factory' concept.
5. ADVANCEMENT OF SAFETY-RELATED TECHNOLOGIES
In the area of highly crashworthy car body technologies, Honda studies and analyzes traffic accidents at its indoor omnidirectional car-to-car crash test facility, with the aim of producing vehicles that can withstand 'real world' traffic accidents. Honda also conducts research and development in technologies to protect pedestrians from injuries. Honda proactively conducts traffic safety programs, including car driver and motorcycle rider education, as an important part of its comprehensive efforts to contribute to traffic safety in a motorized society.
Honda will continue to improve these acivities to reach its goal of becoming the kind of company that society hopes for."
Thread
Thread Starter
Forum
Replies
Last Post
IcebergS2000
Money and Investing
12
May 24, 2007 10:54 AM