Message from President

President Shuzo Kaihori

One reason for a company’s existence is the contribution that it makes to society, and an important mission for any company is the enhancement of its corporate value through healthy and sustainable growth. The Yokogawa Group aims to build relationships of trust and meet the expectations that have been placed on it by society, and does so with the realization that it owes much to nature and the community. Without the acceptance and respect of society, we will not be able to sustain our business operations. As a global citizen, I would like to create value together with our customers and help to make our society more sustainable. We will always be looking for those contributions that only Yokogawa can make by leveraging our technical strengths, and will endeavor to be a socially responsible company with spirited employees who hold their heads high.

The Yokogawa Group has joined the United Nations Global Compact to affirm its support of fundamental principles in the areas of human rights, labor, the environment, and anti-corruption. We will make sure that all employees honor these principles.

Our corporate philosophy is a declaration of the Group’s identity: “As a company, our goal is to contribute to society through broad-ranging activities in the areas of measurement, control, and information.” Although our business activities may not be well known to the general public, we are striving to fulfill our responsibilities to society through the products and services that we provide our customers, and take pride in our support of industries worldwide.

In 2000, we announced the VISION-21 and ACTION-21 long-term corporate strategy for the years leading up to 2010. VISION-21 states, “The Yokogawa Group will work together with its customers to create value in the fields of industrial and social systems. Thus, the Group aims to contribute toward not only preserving the global environment in the 21st century and realizing resource recycling in society, but also realizing a thriving global society.” VISION-21 also sets out our common values, which includes respect for individuals, the creation and sharing of value with our customers, and fairness and openness.

Trust provides the very foundation for a company’s existence. The second part of our corporate philosophy makes clear our standard for personal conduct, affirming, “Individually, we aim to combine good citizenship with the courage to innovate.”

In 1994, we set out our basic compliance policies in the Standards of Business Conduct for the Yokogawa Group. In addition, the Yokogawa Group Internal Control Systems have been established to enhance corporate governance. Thanks to a Groupwide commitment, both efforts have been effective, and we will take further steps to reinforce them. To promote understanding of our activities and build trust, we will also seek to disclose more information.

As indicated in a number of corporate image surveys, Yokogawa is known as a technology company. I believe society expects a contribution from us that is based on our high-quality products and services and utilizes our leading edge technology.

In 2006, the Group designated FY2010 as the Second Milestone for the VISION-21 and ACTION-21 strategy, which states, “Yokogawa will help customers solve problems from their point of view (Customer Centric Solutions), using optimum technical expertise (Leading Edge Technology).” We will do whatever it takes to meet our customers’ needs.

Another initiative for the Second Milestone is “One Global YOKOGAWA.” Regarding this initiative, we have stated, “We must be One Global YOKOGAWA in the eyes of our customers, no matter when, where, or how they encounter us.” As developing and utilizing human resources is another important mission for a company, we will provide the kind of environment in which employees can fully demonstrate their true potential.

More than 50% of our consolidated sales come from outside Japan. Approximately one half of the Group’s employees work in subsidiaries outside Japan, and just one fourth work for subsidiaries in Japan. In response to the increasing diversity of our business and its employees, we must achieve a truly consolidated operation that allows us to combine the strengths of this diverse workforce.

Humankind today faces many problems that involve society and the environment. We must ask ourselves what we can do as a company to respond to these problems and look for answers. Although major issues such as poverty, military conflict, and refugees cannot be immediately resolved by any one company acting on its own, there are many other areas like water, food, medicine, and housing where our business activities in fields such as measurement, control, and life science can have an immediate impact in people’s lives.

Yokogawa is already moving forward on these fronts by leveraging its measurement, control, and information technologies to provide products and services that, for example, help to reduce energy consumption. Capitalizing on our expertise in such areas as renewable energy and water recycling and reuse, we will make further contributions with the aim of realizing a sustainable society.

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