What is “Management Philosophy”?

The Japanese word “Rinen,” expressed in two kanji characters, is said to stand for “ideal belief”. Both “ideal” and “belief” are words we use frequently in our daily lives, but let’s check the Kojien definition in the sense of going back to it.

ideal

The highest conceivable state with respect to an action, property, condition, etc. It is the object of the action as something that does not yet exist in reality, but is feasible, and in that sense is the mobility of the action.

belief

A mind that firmly believes in a certain doctrine, ideal, etc. and does not move.

An ideal is the purpose of action, the motive force. And belief is faith in that ideal. In other words, the two words are understood to be a strong force when they are united.
Management philosophy is the foundation of a company. Its function can be summarized as follows.

  1. Purpose for which the company exists
  2. Corporate Values
  3. The spirit of the company
  4. Corporate Code of Conduct

For each of these, we will discuss specific companies.

First function

Why the company exists, its reasons, its mission.
(Example: Merck’s philosophy/purpose for existence)
“To contribute to the work of fighting disease, alleviating suffering, and helping people.”

Secondary Functions

Values and beliefs that indicate how we seek to realize the purpose of our existence.
(Example: Johnson & Johnson)
The first priority our company owes is to our customers, the second to our employees, the third to society, and the fourth to our shareholders.

Third function

A universal aspiration or spirit, a strong desire of a founder or top leader.
(Example: Sony Spirit …Akio Morita)
Sony boldly takes on tasks that others will not do, tasks that people avoid because of their difficulty, and turns them into enterprises. Here, creative activity is demanded, expected, and promised throughout the development of new products and their production and sales.

Fourth function

Ideals are not just something to be stated, but must be realized and directly linked to actions.
(Example: Walt Disney)
In order to strongly support and realize the ideal of “making millions of people happy and advocating, nurturing, and spreading sound American values,” the company has given the following guidelines: “Cynical thinking will not be tolerated,” “Disney’s ‘magical’ image must be thoroughly managed,” and “Disney’s ‘magical’ image must be protected, The guiding principles are that “cynicism will not be tolerated” and “Disney’s ‘magical’ image will be thoroughly managed and protected.

(The above English translation is for a reference purpose only and a re-translation of the Japanese into English. Accordingly, please refer to the original text as appropriate.)


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This article was written in Japanese and converted into English using a translation tool. We hope you will forgive us for any inadequacies.
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