Messages from Outside Directors
I believe that it is imperative for the directors of Unicharm to accurately understand the Company’s current position and the issues, risks, and opportunities that may arise in the future, and to ensure that they maintain a constant awareness of the requirements of ideal governance that is commensurate with such an understanding.
Hiroaki Sugita
Outside Director,
Audit & Supervisory
Committee Member
Proper governance is essential for companies to earn and maintain the confidence of their stakeholders, including shareholders. Amid dramatic changes in the operating environment and growing uncertainty about the future, it goes without saying that proper governance is becoming increasingly important for companies.
Unicharm increases business opportunities in emerging markets in search of ongoing growth, while continuously expanding its business domains in the countries and regions where it already operates. The Company must preemptively identify and quickly address the risks and opportunities that arise from these activities. The aspects of business that require effective governance are wide ranging. Vigilant monitoring of both risks and opportunities is therefore essential. Risks include market risks, global expansion of employee engagement, compliance risks, investment and capital efficiency, and financial soundness, such as cash flow. Opportunities include whether the Company is conducting proper decision-making, such as on bold investments at the right time in response to new market opportunities, whether it is responding effectively to the strategies and actions of its competitors, and whether it is making optimal use of its assets, such as human capital.
Specifically, Unicharm must address the following challenges:
These substantial challenges all require Unicharm to strike a balance between social value and financial value at a high level, and they make it more difficult for the Company to navigate its operating environment.
Given such circumstances, I believe that it is imperative for the directors of Unicharm to accurately understand the Company’s current position and the issues, risks, and opportunities that may arise in the future, and to ensure that they maintain a constant awareness of the requirements of ideal governance that is commensurate with such an understanding. Based on my recognition of the importance of presenting arguments, perspectives, and views on both risks and opportunities, I have invigorated discussions at meetings of the Board of Directors while cooperating and communicating with those in charge of business execution on the aforementioned challenges.
I am committed to proactively addressing these challenges in my capacity as an outside director by drawing on my experience of managing the Boston Consulting Group, in addition to the expertise I have accumulated while assisting a great many companies with achieving transformation for ongoing growth.
I believe that Unicharm can further develop its long-cultivated uniqueness by making extensive use of technology to conduct multifaceted analyses of phenomena and engaging in discussions that transcend established frameworks with employees from a variety of backgrounds.
Noriko Rzonca
Outside Director,
Audit & Supervisory
Committee Member
For the past two years, I have actively participated as an outside director and Audit & Supervisory Committee member, contributing to discussions at meetings of the Board of Directors, at forums for deliberating strategy, and on other platforms to enhance the corporate governance, internal controls, and transparency that underpin Unicharm’s credibility and sustainable growth. I have offered my input while keeping in mind the standpoints of diverse stakeholders, sometimes intervening to communicate thought-provoking points, and often making controversial contributions from a medium- to long-term perspective. In these ways, I have fulfilled my role of encouraging new perspectives and spurring innovation by preventing lapses into groupthink while advancing constructive discussions. Known as playing devil’s advocate,* this technique is extremely useful during management meetings. It is also highly effective for ensuring transparency at other management-level meetings, allowing participants to engage in free and open-minded discussions.
Realizing “Love Your Possibilities,” the basis of Unicharm’s value creation, in a sustainable way is critical to spurring innovation on the front lines and accurately identifying unmet consumer needs. To this end, capitalizing fully on diversity, data, and digital technology is essential. I believe that Unicharm can further develop its long-cultivated uniqueness by making extensive use of technology to conduct multifaceted analyses of phenomena and engaging in discussions that transcend established frameworks with employees from a variety of backgrounds. I also believe that this is achievable precisely because Unicharm operates a wide range of businesses focused on Asia.
Co-creation with customers, which includes Unicharm’s strengths of marketing research and innovation, provided the impetus for the launches of Project-L, its 12th Medium-Term Management Plan, and the Marketing by DX Division. I look forward to seeing Unicharm further accelerate its decisionmaking through data and digital technology while believing in its own potential and expanding into new worlds.
Love Your Possibilities!
* Intentionally stating an opposing view in a discussion or other argument to encourage more rigorous discussion