Corporate
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Global
Corporate
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Global
OMRON窶冱 history began with its founder, Kazuma Tateishi, an entrepreneur full of passion and ambition. In 1933, he established Tateisi Electric Manufacturing Co. in Osaka, launching the manufacturing and sales of relays and automatic control devices, which laid the cornerstone for what is now OMRON. Since relocating the company窶冱 headquarters to Kyoto in 1945 to avoid war damage, he overcame the postwar turmoil and expanded the business by pioneering the automation market and other initiatives.
Believing that the most important aspect in corporate management was to have a corporate philosophy that would serve as the backbone of the company, Mr. Tateishi attended the general meeting of the Japan Association of Corporate Executives (KEIZAI DOYUKAI) in 1956. There, he was inspired by an address titled 窶廣wareness and Practice of Corporate Social Responsibility,窶 which led him to the realization that a company exists to serve society. Building on this realization, he came to believe that the concept of a company serving as a public institution should form the backbone of management, and in 1959, he established the Corporate Mission: 窶弋o improve lives and contribute to a better society.窶
Mr. Tateishi incorporated two aspirations he had into the Corporate Mission. One is the conviction that 窶彗 business should create value for society through its key practices.窶 The other is 窶徼o take the initiative as pioneer.窶 The establishment of the Corporate Mission fostered a sense of unity throughout the Company, which led to OMRON窶冱 subsequent dramatic growth.
Mr. Tateishi believed that in order for OMRON to solve social issues through business and create a better society as a venture business, it would be essential to create social needs ahead of other actors in society. Believing that this would, in turn, require a compass to navigate the future, Mr. Tateishi pursued futurology research and constructed a theory himself. Building on this, in 1970, Mr. Tateishi presented this original future predictive theory, the SINIC Theory, at the 2nd International Future Research World Conference . SINIC stands for Seed-Innovation and Need-Impetus Cyclic Evolution, expressing the concept of innovation evolving in a circular pattern.Presented in the midst of Japan's rapid economic growth prior to the advent of PCs and the Internet, this theory predicted the appearance of an information society in the near future, and drew a picture of society up to the middle of the 21st century.
Based on this theory, OMRON has continually made forward-looking proposals to society. Even today, the Company continues to use the SINIC Theory as a management compass, utilizing it for forecasting future society and for purposes such as formulating its long-term visions.
OMRON achieved growth over the years by creating a series of world- and Japan-first innovations. However, around the 1980s, the Company began facing challenges associated with its expanding business scale and the spread of globalization. To address these challenges, the management that succeeded Mr. Tateishi returned to OMRON窶冱 founding spirit and steered the Company toward building a framework to demonstrate its venture spirit and continue achieving sustainable global growth.
Firstly, the establishment of the OMRON Principles. In 1990, the Company introduced the OMRON Principles framework based on the Corporate Mission as a spiritual cornerstone to enable all employees to act autonomously and embody the founding DNA of 窶廬nnovation Driven by Social Needs窶 and 窶彗 Challenging Spirit.窶 Since the establishment of the OMRON Principles, the Company has continued to revise and optimize them in line with the changing times so that it can keep growing as an innovative company, while strengthening the sense of unity that serves as a shared foundation for employees worldwide.
Secondly, the formulation of the Long-term Vision. Placing the SINIC Theory presented by Mr. Tateishi as a management compass, the Company fully introduced the backcasting approach of 窶徑ooking at the present from the perspective of the future,窶 and formulated its first Long-term Vision in 1990. This was an innovative concept that defined present actions by working backward from the desired future society, enabling future-oriented management that goes beyond short-term problem solving.
Thirdly, the evolution of governance that supports future-oriented team management based on the OMRON Principles. Since the 1990s, OMRON has continued to build its governance framework in stages, in line with changes in the times and the evolution of management. Today, under the Management Philosophy established together with the OMRON Principles revised in 2015, the Company is committed to 窶忖pholding a long-term vision and solving social issues through our business,窶 窶徙perating as a truly global company through fair and transparent management practices,窶 and 窶彡ultivating strong relationships with all of our stakeholders through responsible engagement.窶 Guided by these commitments, OMRON aims to sustainably enhance its corporate value through the practical implementation of the OMRON Principles (see Figure 1).
The OMRON Principles
The OMRON Principles represent our unchanging beliefs.
They are the cornerstone of our decisions and actions, what binds us together, and the driving force behind OMRON窶冱 growth.
Management Philosophy
We believe a business should create value for society through its key practices.
We are committed to sustainably increasing our long-term value by putting Our Mission and Values into practice.
OMRON achieved growth over the years by creating a series of world- and Japan-first innovations. However, around the 1980s, the Company began facing challenges associated with its expanding business scale and the spread of globalization. To address these challenges, the management that succeeded Mr. Tateishi returned to OMRON窶冱 founding spirit and steered the Company toward building a framework to demonstrate its venture spirit and continue achieving sustainable global growth.
Firstly, the establishment of the OMRON Principles. In 1990, the Company introduced the OMRON Principles framework based on the Corporate Mission as a spiritual cornerstone to enable all employees to act autonomously and embody the founding DNA of 窶廬nnovation Driven by Social Needs窶 and 窶彗 Challenging Spirit.窶 Since the establishment of the OMRON Principles, the Company has continued to revise and optimize them in line with the changing times so that it can keep growing as an innovative company, while strengthening the sense of unity that serves as a shared foundation for employees worldwide.
Secondly, the formulation of the Long-term Vision. Placing the SINIC Theory presented by Mr. Tateishi as a management compass, the Company fully introduced the backcasting approach of 窶徑ooking at the present from the perspective of the future,窶 and formulated its first Long-term Vision in 1990. This was an innovative concept that defined present actions by working backward from the desired future society, enabling future-oriented management that goes beyond short-term problem solving.
Thirdly, the evolution of governance that supports future-oriented team management based on the OMRON Principles. Since the 1990s, OMRON has continued to build its governance framework in stages, in line with changes in the times and the evolution of management. Today, under the Management Philosophy established together with the OMRON Principles revised in 2015, the Company is committed to 窶忖pholding a long-term vision and solving social issues through our business,窶 窶徙perating as a truly global company through fair and transparent management practices,窶 and 窶彡ultivating strong relationships with all of our stakeholders through responsible engagement.窶 Guided by these commitments, OMRON aims to sustainably enhance its corporate value through the practical implementation of the OMRON Principles (see Figure 1).
* To obtain proper profit means not prioritizing the Company窶冱 profit alone, but earning appropriate profit through corporate activities that fulfill social responsibilities, such as ensuring the quality of safe and reliable products and services, realizing carbon neutrality, and respecting human rights.
OMRON has advanced its management ahead of the social conditions of each era, including responses to the globalization of its business and increasingly competitive markets, as well as changes in the business environment and other external factors. In tandem with this evolution of management, it has also revised the OMRON Principles.
This section presents the history of the revisions to the OMRON Principles in the following order: 窶徼he background leading to each revision,窶 窶徼he management issues at the time and the directions for evolution to overcome those challenges,窶 and 窶徼he initiatives in management, organizational culture, and corporate governance窶 implemented in accordance with those directions.
OMRON has advanced its management ahead of the social conditions of each era, including responses to the globalization of its business and increasingly competitive markets, as well as changes in the business environment and other external factors. In tandem with this evolution of management, it has also revised the OMRON Principles.
This section presents the history of the revisions to the OMRON Principles in the following order: 窶徼he background leading to each revision,窶 窶徼he management issues at the time and the directions for evolution to overcome those challenges,窶 and 窶徼he initiatives in management, organizational culture, and corporate governance窶 implemented in accordance with those directions.
To support the concept of the Company窶冱 first Long-term Vision, the various messages that had been communicated internally to express the Company窶冱 management philosophy and direction, as well as the attitude and conduct expected of employees, were organized and systematized into three levels: the OMRON Principles, the Management Philosophy, and the Behavioral Guidelines.
Background and history of the revision of the OMRON Principles
In 1987, Yoshio Tateishi became the third President of the Company. Returning to the entrepreneurial spirit at the origin of OMRON, he recognized the need to instill throughout the Company the founding DNA of 窶廬nnovation Driven by Social Needs窶 and 窶彗 Challenging Spirit.窶 To this end, he advanced a true understanding and sharing of the corporate philosophy as a driving force for further growth by introducing a philosophy system based on the Corporate Mission, which had previously been positioned as a spiritual guide.
Management issues and solutions
Throughout the 1980s, changes in the market environment and the emergence of competitors became increasingly apparent. As a result, the Company窶冱 domestic market share declined due to delays in product development and customer service responses. To break through this situation, the Company began building a framework that would enable on-site personnel to make their own decisions and respond swiftly to customer needs. The Company promoted a mindset reform with three pillars: Autonomous Management for prompt decision-making, Autonomous Business for strengthening governance, and Autonomous Individual for encouraging proactive behavior, aiming to become a vibrant company filled with a challenging spirit.
Evolution of management, organizational culture, and governance
To respond to rapid changes in the social and business environment, the Company reorganized and integrated its existing OMRON Principles framework into the Corporate Mission, the Management Philosophy, and the Special Declaration.
Background and history of the revision of the OMRON Principles
The Company launched its initiative to 窶徼ransform into a startup-style large corporation窶 to further promote the creation of a corporate culture and framework filled with a challenging spirit and to realize a growth structure for the 21st century. In conjunction with the 65th anniversary of its founding, the Company reorganized the OMRON Principles framework to focus on elements essential for the coming era, with the aim of deepening understanding and promoting widespread awareness among all executives and employees. Based on the Corporate Mission, the new OMRON Principles framework comprised the Management Philosophy, consisting of six Fundamental Principles, and three Special Declarations.
Management issues and solutions
To respond to the sharp decline in profits following the collapse of Japan窶冱 economic bubble and the economic stagnation in Japan, the Company implemented management structural reforms centered on the new OMRON Principles. The management and business execution functions were separated to speed up decision-making, improve flexibility, further strengthen business operations, and enhance management transparency for shareholders. In addition, the Company introduced an internal company system, aiming to become a multi-business enterprise with the strengths of a specialized manufacturer. It also advanced reforms of the Board of Directors, including the establishment of the Management Personnel Advisory Committee, to promote initiatives toward becoming a company open to society.
Evolution of management, organizational culture, and governance
To make the public nature of the company the driving force for growth and to pursue a balance between economic value and social value, the OMRON Principles framework was revised. By creating a structure that links the OMRON Principles with individual behavioral standards, the revision encouraged greater autonomy among employees.
Background and history of the revision of the OMRON Principles
Amid the global recession caused by the collapse of the dot-com bubble, OMRON recorded its first net loss in 26 years in fiscal 2001. After completing an 18-month structural reform program that began in October of that year, Hisao Sakuta was appointed as OMRON窶冱 fourth President in June 2003. Determining that his mission was to enhance corporate value, he drove the expansion of business domains and organizational reforms. Believing that only companies that are needed and trusted by society can survive, he positioned the public nature of the company as the driving force for growth and decided to revise the OMRON Principles.
Management issues and solutions
Based on the SINIC Theory, OMRON defined 2005 as the first year of the era of optimization, when a cooperative network based on autonomous decentralization had almost been established as part of social infrastructure. The Company pursued corporate management and business development based on the concept of an optimized society. To help realize this new society, OMRON defined its core competence as its sensing and control technology and aimed to contribute to the advancement of society through creating optimal humans-machine synergy.
Evolution of management, organizational culture, and governance
To ensure that all employees understand and act upon OMRON窶冱 fundamental purpose and values, the Company revised the OMRON Principles by inheriting the Corporate Mission as 窶廾ur Mission窶 and organizing three core values as 窶廾ur Values,窶 thereby promoting a shared global understanding.
Background and history of the revision of the OMRON Principles
Yoshihito Yamada , who became President of OMRON in 2011, and the management team at the time were concerned that the true meaning embodied in the Corporate Mission was not being properly understood, and that the venture spirit and culture of challenge that had characterized OMRON since its founding were fading within the organization. To address this, they decided to revise the OMRON Principles for the third time, encouraging employees to change their behavior by redefining the Principles as something that liberates each individual窶冱 passion and ambition for their work and expands their potential.
Management issues and solutions
Returning to the OMRON Principles, and based on the belief that businesses that contribute to society must also be highly profitable, the Company began full-scale implementation of ROIC management in 2013 with the aim of evaluating each business from an impartial perspective. By continuously optimizing its business portfolio, the Company sought to build a strong profit base and maximize corporate value. In addition, the CEO Selection Advisory Committee, primarily composed of Outside Directors, was established to ensure transparency and objectivity.
Evolution of management, organizational culture, and governance
To demonstrate that the OMRON Principles remain the unwavering foundation of the Company窶冱 management, the Principles were incorporated into the Articles of Incorporation.
Background and history of the revision of the OMRON Principles
To make it clear that the foundation of OMRON窶冱 management, which lies in continuing to practice the OMRON Principles to contribute to social progress and enhance corporate value, remains unchanged, the Company included the practice of the OMRON Principles in its Articles of Incorporation in 2022. By stipulating the practice of the OMRON Principles in the Articles of Incorporation, OMRON demonstrated that the Principles are not merely guidelines or slogans, but are to be implemented as an integral part of management. In 2023, Junta Tsujinaga was appointed as the Company窶冱 sixth President.
Management issues and solutions
The Company faced challenges such as shortages of components caused by the deteriorating situation between Russia and Ukraine and China窶冱 zero-COVID policy. In 2024, to address the decline in business performance, the Company launched the Structural Reform Program 窶廸EXT 2025窶 to ensure sustainable sales growth with profitability and realize continuous enhancement of corporate value. As a key management issue, OMRON began rebuilding its profit and growth foundation, including the swift revitalization of the Industrial Automation Business. Following the structural reforms, the Company plans to announce a new medium-term management plan outlining its post-reform growth strategy in the fall of 2025.
Evolution of management, organizational culture, and governance
