Management Practices of Business Enterprise Contributing to Society: Omron Corporation case study

Abstract

This paper clarified an ideal management practice for Japanese companies from case study research on Omron Corporation which is a company contributing to society through the actual behavior of its management leaders and employees. Companies that practice shareowner-centered models have succeeded through practicing “high price or fair price” and “restructuring and reinvestment.” However, typical stakeholder-oriented Japanese companies have not been able to implement them. Nonetheless, Omron has succeeded through setting and practicing the philosophy “creation of social needs.” The reasons are management practices of Omron from the era of the founder to the present president. These practices include philosophy, mechanism, human resources growth and action. And these elements of practices are linking together forming virtuous cycles of success.