How Far has the Polyplastics Clock Creation been Advanced

January 1, 2003
C.E.O. Yasumasa Komura

I wish all of our employees a Happy New Year
We have already reached the third year of the 21^stCentury. Is it only I that feels the passing of the years getting faster and faster?

Since the world order based on the East-West confrontation of the Cold War Ear that emerged after the Second World War ended at the end of the 1980s, the global economy and politics have formed a new order surrounded by an ere of uncertainty and confusion. The wars between religions and races are sources of conflicts that have come back in place of ideologies. Frequent terrorist incidents such as that in New York in 2001, and those on the island of Bali and Moscow in 2002, as well as the war in Afghanistan and the Iraq issue, are some of the many incidents that have occurred. Entering 2003, there is no end in sight as to solutions for these problems.

Looking back at the global economy and society in 2002, economic growth in developed economies was blunted due to the signs of exposure of the limitations of America's New Economy. In China, meanwhile, it became very clear that the Mainland was at opposite poles to the West as its economic strength continued to grow by leaps and bounds. It is highly likely that this trend will be carried over in to 2003.

In the Japanese economy and political world, two opposing opinions -- "No Economic Growth without Political and Economical Structural Reform," and "No Political and Economical Structural Reform without Economic Growth" -- were voiced, and the answers to these have been carried over into this year. Amid this confused and uncertain era, the first thing that we at Polyplastics must do as a producer of industrial materials is focus earnestly, as well as simply and honestly, on achieving growth in our company towards the future by pushing ahead with development of materials that help our customers to realize innovation. Secondly, I believe we must follow our customers in terms of their technologies and their geographical production shifts and in the Asia Pacific, and indeed globally, and pursue establishment of a network that will secure our positions as the most trusted provider of industrial materials.

Looking back at the activities of our group in 2002, I feel that we have made great progress in terms of putting in place a framework and promoting staff awareness so that we can pursue the above two roads. In 2003 too, I hold high expectations that all our staff will make strenuous efforts aiming for these two roads.

In my New Year Message of 2001, I proposed the idea of "Polyplastics Clock Creation." With small components one-by-one maintaining the order, and time continuing to tick away continuously (growth continuing), we aimed for creation of that clock. In these two years, "component making" has progressed smoothly. I feel reassured that the level of completion of each of these components has increased. What I feel is asked for now is development of the software to control the movement between components and maintain synchronization. The introduction of ISO 9001 quality management systems and a new human resources system is part of the creation of this software.

In my internal communication of August 2001, I emphasized to all of our employees the importance of dialog. Dialog between individual employees, between employees and their superiors, and between different departments is an indispensable lubricant in the Polyplastics Clock. If there is insufficient lubrication, components start to grate and creak against each other, they damage each other, and in the end the clock as a whole loses its functionality. I am hoping for increased levels of dialog within the company during 2003.

Regarding "dialog," there is one thing that I must ask. In fiscal 2002, the problem of "Corporate Ethics Violations" that had its roots in American corporate management extended over to Japanese corporate management. Society is strictly demanding that companies carry out their obligations as members of civil society. The compliance of all corporations is a most elementary requirement in order that individual corporations are able to acquire this right to exist in civil society. There are two types of compliance -- legal compliance and moral compliance. A managerial attitude that merely thinks it is "OK not to break the law" is considered one inclined towards legal compliance. Legal compliance is of course regarded as a necessity, but what is called for now is evidence of how genuinely we are striving to achieve moral compliance. Moral compliance of course includes observing the general ethics and morals of civil society that are outside the scope of the law, but I also think it encompasses faithfully fulfilling commitments to society and individual customers by individual companies.

In our long history as a company, there are many practices that we conduct for reasons such as; "We've always done it this way and it has not really caused any trouble before. My predecessor did it this way. There is merit in it for the company."

We must give an overall evaluation to each of these "internal practices" to ascertain their compliance, in particular focusing on the second type of compliance. "Dialog" is necessary in order to press ahead with these checks. Each and every one of our staff must evaluate their work and disregarding past practices, discuss freely with colleagues and superiors whether "This is the right way to do it?" or "This is not mistaken?" In addition, it is also necessary to create a work environment where things can be freely stated.

Last year, our company prescribed a "Code of Behavior" and"Ethical Conduct Guidance." Compliance is not achieved merely by prescribing "behavior" and "guidance."

Staff members should make themselves aware of the two types of compliance, participate in their realization through "dialog," and participate in reform of the corporate climate in order to achieve such an environment.

The subject matter has extended to the "corporate climate" so lastly, I would like to raise one more issue. I think that the "corporate climate" can be viewed of as "corporate DNA." Our "DNA" has been fostered over the past 40 years plus. Among our "DNA" is one type that concerns me. This has to do with my feeling that the influence of "problem solving-type DNA" is probably too strong. For example, rapid response to the demands of an individual customer or highly efficient solving of a problem given from a superior belong to this type of DNA. Make no mistake that this DNA is an excellent type that has supported the success of our company to date. However, what is demanded in this era of confusion and uncertainty is surely a "challenge proposing-type DNA."

What is called for from each department in the group is a transformation from "Solving problems and challenges channeled from the top" to "Discovering challenges by oneself, proposing them, and working to solve them." I sincerely desire that such DNA can be fostered.

How far will the creation of the Polyplastics Group Clock progress in 2003? While placing priority on the finishing process for individual components, I also wish to work together with everyone in a joint effort towards augmenting and developing software that moves the individual components, such as "quality management systems," "dialog," "compliance," and "challenge proposing-type DNA." I request the understanding and cooperation of each and every staff member.

In conclusion, I sincerely wish that 2003 will be a productive year for both our company and each and every staff member.