2011-3

Shiseido establishes New Corporate Philosophy
“Our Mission, Values and Way”

Shiseido Co., Ltd. has revised the Shiseido Group Corporate Philosophy and will introduce it in April 2011 as “Our Mission, Values and Way” to be shared by all employees of the Group. Shiseido is currently promoting various initiatives with the aim of becoming “a global player representing Asia with its origins in Japan.” As the business environment in countries and regions around the world changes, and brands, organizations, and human resources grow more diverse, in order for the Shiseido Group to accomplish further growth it is absolutely necessary for all employees of the Group to share a common mission and values and to proceed in the same direction. For that reason we have reviewed our corporate philosophy and created a new Shiseido Group corporate philosophy entitled “Our Mission, Values and Way.” This new philosophy will serve as day-to-day operational guidelines for all employees as well as the criteria for various management processes required to realize the corporate vision and management and business strategy towards ensuring sustainable growth of the Shiseido Group.

Development of the Shiseido Group Corporate Philosophy

Since Shiseido’s foundation in 1872, we have carried out activities with the aim of “serving our customers through beauty and wellness, thus contributing to society.” The source of our corporate philosophy is the Five Principles (Quality First, Coexistence and Co-prosperity, Respect for Consumers, Corporate Stability, and Sincerity) that were established in 1921. We decided upon these principles as our fundamental philosophy as we switched from being a privately owned business to a corporate organization. Afterward, we determined the Corporate Ideals in 1989. As our business become more diversified and we developed non-Shiseido brands*, we clarified “how the Group can be of use to the society” and determined the direction that Shiseido should take. The importance of corporate governance and corporate ethics grew, which inspired us to develop THE SHISEIDO WAY in 1997 and make it the company-wide action policy for realizing the Corporate Ideals. In addition, we established THE SHISEIDO CODE as a specific code of corporate ethics and standard for conduct from the viewpoint of compliance, and continue to follow this code even today.
*Independent brands and affiliated companies within the Shiseido Group that are not under the name “Shiseido.”

Shiseido Group’s New Corporate Philosophy: “Our Mission, Values and Way”

The business environment that Shiseido operates in is changing in conjunction with changes in countries and regions around the world and the diversification of brands. Overseas sales – which comprised less than 10% of the total in 1989 when the Corporate Ideals were established – grew to approximately 40% in 2009. In addition, our overseas affiliated companies grew from 16 to 71 companies during the same period. Along with the necessity for each of our brands and businesses to grow while refining their unique values, we believed that it was necessary for us to redefine common principles and standards of conduct in order to strengthen the solidarity of the Group as a whole. For that reason, based on feedback from over 5,000 employees gathered through surveys and interviews conducted at overseas affiliates, we established the new Shiseido Group corporate philosophy, entitled “Our Mission, Values and Way.”

Our Mission

We cultivate relationships with people
We appreciate genuine, meaningful values
We create beauty, we create wellness.

“Our Mission” defines corporate mission, “how the Group can be of use to the society” and business domains. It sets out our raison d’etre, that is core to the Group.

Our Values

In Diversity, Strength
In Challenge, Growth
In Heritage, Excellence

“Our Values” define the values that must be held and shared by each and every employee of the Shiseido Group aiming to realize our Mission. Our Values set out the values we should keep in mind when we do our businesses.

Our Way

Toward Consumers
Toward Business Partners
Toward Shareholders
Toward Employees
Toward Society and the Earth

“Our Way” defines the actions that must be held and shared by each and every employee of the Shiseido Group. Our Way sets out not only abiding by the laws of each country and region, international rules and regulations of the Shiseido companies, but also the action standards for business conducts with high ethical standard.