Understanding the Importance of Sustainability Management

The importance of sustainability management can be better understood when it is illustrated as an iceberg.

 

For example, financial information of a company represents only the tip of the iceberg: the shape symbolizes the company’s corporate strategy or business development, the color and texture indicate the company’s performance, and the climate surrounding the iceberg stands for external environments of the company. These three aspects are considered to have impacts on the company’s valuation.

 

On the other hand, invisible parts of the iceberg under water represent non-financial information of a company such as ESG. Non-financial information is essential in that it supports the sustainability, stability, and soundness of management, corporate governance, countermeasures against environmental/social issues, and corporate growth/continuity (the iceberg above water).

Thus, in order to realize sustainable growth of a company and to be widely understood by stakeholders, we need to make efforts on both financial and non-financial elements while disclosing such information appropriately.

 

Concept image of the importance of corporate CSR activities


Basic Concept of Sustainability Management

CSR activities by companies consist of two axes: a business axis which stands for connections with business growth (Y axis) and a social axis which stands for connections with social responsibility (X axis). JVCKENWOOD believes that adding another axis, a personal axis which stands for “identity (uniqueness)” (Z axis), will enable us to promote strategic sustainability through our strengths. By managing sustainability based on these three axes, we can provide products and services with high social value and enhance customer satisfaction, resulting in the JVCKENWOOD Group’s growth as a customer value creator.

 

Basic concept image of sustainability management


Three Factors of Strategic CSR

In the course of promoting CSR by companies, JVCKENWOOD recognizes that it is important to develop and promote the following three factors: growth strategy, structural reform, and brand strategy.


1. Development/promotion of growth strategy

Strategic CSR helps develop new business fields and growth opportunities for the company. By aligning the connections between business and social issues, the company can discover potential business. Furthermore, daring to take on risks will create new business opportunities and value, while serving as a growth driver.


2. Development/promotion of structural reform

Strategic CSR will help innovation in management process and thus reinforce the company’s competitiveness. Strengthening corporate governance, ensuring transparent management, promoting prompt decision-making processes, and encouraging internal innovations will stimulate transformation to a company with a structure that encourages sustainable and organic innovation (transformation).


3.Development/promotion of brand strategy

Strategic CSR will help enhance brand value through stronger collaboration with diverse stakeholders. Improved trust via stakeholder engagement promotion will lead to positive evaluation of the company’s products/services, while further raising brand value.