Top CommitmentTop Message (Chairman and CEO)

Our Founder’s Spirit — the inspiration for our approach to
sustainable management — is also indispensable to the future attainment of sustainable development. We will contribute further to society in collaboration with everyone concerned. Takeo Higuchi Chairman and CEO

We are committed to management in the belief that "a company is a public organ of society."

More than 60 years have passed since Ishibashi Nobuo, the founder of Daiwa House Industry, established our company with only 18 employees in 1955. He launched his business from zero, and we carry on the business with the intention of offering something of use to the world without imitating the products or services of other companies. "Consider ideas that would please and be useful to individuals and society, rather than just focusing on how to earn profits. These must be the keywords of our business." This comment by Nobuo Ishibashi has remained our never-changing value standard and has become the common philosophy that encompasses the entire range of businesses we operate.

As exemplified by our latest consolidated sales exceeding ¥3,500 billion, our business has grown substantially, and I think we should now reflect on the importance of keeping our founder’s spirit vibrant and at the forefront of our future. We want to remain a company that contributes to society, never losing sight of the attitude that inspired the founder of our company.

I received a wide-ranging education from Nobuo Ishibashi during our time together, and I have remained committed to managing our Group in the belief that we must preserve our moral principles while demonstrating that "a company is a public organ of society." These sentiments represent our unwavering values and I am convinced that they represent cornerstones that should never be forgotten as we manage our businesses and pursue our operations. Of course, it is commonly acknowledged that "moral principles" represent the most appropriate course society should follow. As Mr. Ishibashi said, "Never be unreasonable when dealing with individuals and society." We must accomplish ordinary tasks on a routine basis with diligence. In other words, in the course of regular business and in our personnel training, all our employees must remember to be complete in small things. This is one of the values that lie at the very heart of sustainable management. I believe it is now my mission as an executive to ensure that each of our more than 60,000 employees share this value and work to ensure it is instilled in every company of our Group.

The starting point of a business is to please the customer and be useful to individuals and society.

Our Group aims to carry forward our founder’s will, becoming a corporate group with consolidated sales of ¥10 trillion by 2055, the 100th anniversary of our company’s founding. This goal is not merely to continue expanding the scale of our business; it is simply a manifestation of our corporate stance of developing a business of sufficient scale to respond to social issues in a diligent and sustainable manner.

Business Domain (targets for value creation)

Group that co-creates value for individuals, communities and people’s lifestyles

In order to meet the challenge presented by this inspiring goal, our existing business must work harder than ever to contribute to society. Furthermore, it is essential that we proactively expand our business internationally in addition to developing new businesses as part of our growth process. We will continue to demonstrate the decisive communication that has supported the growth of our company since its founding. In so doing, we will become more sensitive than ever to emerging trends and contribute to global environmental issues, in addition to responding to Japan’s declining birthrate and aging society. Clearly, it is essential that all our executives and employees seriously address a variety of social issues. It is also important that we work together, not only in-house, but also with the broad range of stakeholders in our circles, including our business partners.

Looking to new business development, we are making an investment in Cyberdyne Inc., a business venture that develops a type of robotic suit for use in medical care, and will collaborate with them. In addition to publicly listing its shares in its eighth year after we made our investment, this company is accelerating its product development efforts. Its robotic suits hold great potential for the future, as they are expected to find applications in fields as diverse as construction and nursing care in Japan, where the shrinking labor force has become an issue of public concern.

It should be noted that Daiwa House Industry is also focusing on commercialization of robotics. For example, we collaborated with another business venture, NWIC Co., Ltd., in the joint development of Minelet Sawayaka, an automatic bedpan device for bedridden patients that is intended to reduce the burden of nursing care in Japan’s aging society. Moreover, we are working on the development of a wide range of businesses, including an environmental energy business that will help to solve the climate change issue and an agricultural business that will help to resolve global food issues.

The key phrase we have adopted for business development is "Asu Fukaketsuno"; this is an initialism comprising the syllables for the Japanese words for safety, comfort, speed, housing stock, social welfare, the environment, health, information-communication technology, and agriculture. These fields represent the primary issues that are challenging humanity the world over. Our goal is to develop new businesses and contribute to society by giving priority to a single perspective: "Pleasing the customer and being useful to individuals and society." We will continue to strengthen our cooperation with outside business ventures as we develop together sustainably while forging bonds of mutual trust.

Historical Background to Our CSR Guidelines

The social contribution initiatives that we implement through our business are symbolized in the phrase "Asu Fukaketsuno" and are consistent with our Group’s CSR Guidelines. We are committed to contributing to society through our business with our proprietary technologies and expertise. This is the business policy to which our company has held firm since its founding.

In 2002, we abolished our division system as an organizational reform and delegated authority to branch managers in order to establish a system more closely aligned with the region. We also adopted six criteria in question form that we consider prerequisites for responsible decision-making: Does it benefit our company?; Does it benefit our employees?; Does it benefit our customers?; Does it benefit our shareholders?; Does it benefit society?; and Does it contribute to our future? These six criteria for decision-making reflect the attitudes we inherited through our Founder’s Spirit and represent our foundational principle, to be of use to individuals and society.

If we consider these six criteria to represent the cornerstone of our management, and the nature of the day’s work and new issues are deemed to apply, we should act without delay and boldly pursue it. As a consequence of this approach, we have been able to achieve our current growth by continuing to pursue positive activities over the past dozen years without blurring our decision-making criteria. As a result, we have been able to produce our current growth. In other words, these criteria can be regarded as the starting point of today’s CSR management. At the time we adopted this approach, when the concept of "CSR" was relatively unknown in Japan, it was quite significant to have been able to set down decision-making criteria with an enlightened awareness of current stakeholders.

"Endless Heart" — the symbol of our approach to contributing to society

From now on, in order to take on our new challenge for sustainable growth, our most important initiative is to cultivate human resources. Clearly, it goes without saying that "corporations are people." In anticipation of future growth, we must carefully nurture all our young employees, provide a venue for their activities, and create a system for properly evaluating the fruit of their work. Moreover, as our businesses continue to develop internationally at an accelerating pace, we need to train our personnel in a manner that transcends conventional thinking.

With the expansion of our business and the increasing diversity of our workforce in terms of age and country of origin, I think we must place greater value on our founding spirit. One of my foremost duties as chairman is to ensure our founding spirit remains at top of mind for future generations; in short, this requires that I assume a role similar to that of a preacher, and I would like to instill this sentiment in all members of the Daiwa House Group.

At the beginning I mentioned the prospect of working toward attaining our centennial, but more than 30 years remain until that day. Although we can think of it as being a point of time in our future, our company’s centennial is really just a passing point in time; for the next 100 years after that we must ensure our company remains in service to our customers and society at large for an unlimited period of time.

Of course, we do have a tendency to forget important moments in our history over the passage of time. Now, however, I think that it is essential that all our executives and employees give fresh thought to the circumstances of our founding and the values our founder adhered to.

When we celebrated our 50th anniversary, we also adopted our "Endless Heart" symbol signifying our ties to our customers as well as the solidarity of the Daiwa House Group. The design is reminiscent of a Moebius ring that represents the constant action and infinite growth of our Group. This symbol also reflects our founder’s thoughts and demonstrates our determination to highlight the value of our founding spirit and cooperate with many people in order to expand our business into something that is of great use to the people of the world. Even as the scale of our business grows, we shall never forget this sentiment. I intend to continue fulfilling my mission with solemnity for the benefit of the corporation. Going forward, I trust I can count on your understanding as well as the support of a great many members of society.

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