Canon's 'Kyosei' Philosophy and Social Responsibility Initiatives
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Case Details:
Case Code : BECG033
Case Length : 13 Pages
Period : 2003 - 2004
Pub. Date : 2004
Teaching Note :Not Available
Organization : Canon Inc.
Industry : Photocopier & Camera
Countries : Japan
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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"Canon is a prime example of a major multinational corporation that has adopted social responsibility, in the form of Kyosei, as their corporate philosophy." 1
- www.kyoseiconsulting.com
"Behind every success story lie a strong guiding principle. At Canon, this principle is embodied in the word Kyosei." 2
- www.canon.com
Introduction
In January 2002, the Japanese digital equipment manufacturer - Canon Inc. (Canon), established its Global Environment Promotion Headquarters (GEPH), as part of the company's continuing efforts towards working for environmental conservation. Following the establishment of GEPH in Japan, Environment Promotion Committees (EPCs) were constituted in Asia, the Americas, Europe and Oceania to supervise Canon's environmental conservation activities in these regions.
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The setting up of the GEPH and EPCs was just one of the many environment protection and community development initiatives taken up by Canon over the years. All these initiatives were an integral part of Canon's corporate philosophy - the Kyosei. Though Canon had been informally practicing it ever since it began operations in 1937, its management formally conceptualized Kyosei in 1988 and committed itself to follow the principles. Kyosei served as a guide to Canon about how it should behave with its employees, customers, suppliers, competitors and the community in which it operated. To ensure that the principles of Kyosei are uniformly adopted and followed throughout the organization including its global subsidiaries, Canon formalized its code of conduct (Refer Exhibit I).
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By successfully employing the principles of Kyosei in its regular business activities, Canon demonstrated that a corporation can be successful not only by focusing entirely on its financial commitments but also by addressing issues concerning the operating environment and the society at large. Canon also addressed issues concerning the environment by keeping a check on air and water pollution in its manufacturing activities.
The company had developed an Environmental Charter way back in 1990 (Refer
Exhibit II).
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Canon's website described the essence of Kyosei as, "The corporate philosophy of Canon is kyosei, which means 'living and working together for the common good.' Our aim in pursuing this philosophy is to support the development of a society in which all people enjoy happiness and fulfillment, regardless of differences in culture, customs, language and race. However, there are many imbalances in our world in areas such as trade, income levels and the environment, which are hindering the achievement of Kyosei; we are actively striving to resolve these imbalances. True global companies should establish good relations not only with their customers and communities in which they operate, but also with entire nations and the environment. |
Canon's 'Kyosei' Philosophy and Social Responsibility Initiatives
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