Basic Management Principles

Management Policy

The cornerstone of Komatsu's management principles is to maximize its corporate value through commitment to Quality and Reliability. We at the Komatsu Group believe our corporate value is the total sum of trust given to us by society and all stakeholders.

To enhance this trust, we have not only taken action with full awareness of corporate social responsibility, but also worked to strengthen corporate governance and sharpen manufacturing competitiveness, thereby building on the source of our strengths.

By introducing brand management based on this line of thought, we have been promoting efforts to change our way of thinking from the conventional perspective of a company (supplier) to that of customers, thereby further improving group-wide corporate fundamentals and promoting human resource development.

Commitment to Quality and Reliability

We believe our commitment to Quality and Reliability should not be limited to products and services but also extend to organizations, businesses, employees and all aspects of management. To enhance this Quality and Reliability, we have focused on the following five management guidelines.

  • To always think about the needs of customers and to strive to provide not only products, services and systems that are safe, environmentally friendly and innovative, but also optimal solutions to their problems.
  • To always engage in self-initiated innovation of technology and management.
  • To promote consolidated management from the global perspective.
  • To contribute to the welfare of the local community as a good corporate citizen.
  • To protect the safety of employees and their families and provide employees with opportunities for self-initiated innovation and achievements.

Emphasis on Corporate Governance

To improve Quality and Reliability of management, the top management of each Komatsu Group company shall not only make constant efforts toward, but also have full awareness of corporate social responsibility, thereby removing risky, speculative businesses and practicing sound management. Komatsu Group companies also strive to vitalize their Board of Directors, the core organization for corporate governance, and establish their internal control system, thereby working to maintain and improve transparent and sound management.

Reinforcement of Manufacturing Competitiveness

By Manufacturing Competitiveness, we mean to provide our customers with those products, services and solutions that they highly appreciate. It also requires due considerations on safety and environmental conservation in all processes and become indispensable to our customers.

Reinforcement of Manufacturing Competitiveness requires teamwork on two main platforms. First, this teamwork exists within the Komatsu Group, involving relevant departments, such as R&D, procurement, production, marketing, servicing and administration. Second, the same level of teamwork functions throughout the value chain, involving our suppliers, distributors and other business partners. This teamwork demonstrates our Gemba (workplace) capability, i.e., the vitality of all our employees and organizations plus our ability to continuously improve workplaces. In this way we continuously embrace the challenge of manufacturing safe and innovative products.

Brand Management

Through Brand Management, guidelines for marketing and customer relations, we confront, along with our customers, the problems of equipment deployed on their jobsites and propose ideas for improvement, thereby enhancing their reliability (the degree of their dependence on us) and our relationship (the degree of continuously being chosen as their partner).

To solve the problems of jobsite operations with our customers, we not only increase our visits to their jobsites and opportunities for communication, but also make their jobsite operations “visible” by means of ICT application. Once problems are identified, we capitalize on our group-wide resources in an integrated manner to develop solutions.

We complied a record of Komatsu's strengths, which our forerunners had built up, fundamental beliefs and mindsets underlying such strengths, as well as patterns of behaviors for practical implementation in the course of Komatsu's growth, based on management policy. Then, we documented them in writing as The KOMATSU Way in 2006.

The KOMATSU Way describes the values that must be shared by all employees of the Komatsu Group, including top management, and must be passed on to the generations to come at all workplaces.

Dissemination of The KOMATSU Way

  • Against the backdrop of a declining number of veteran employees in Japan and a growing number of foreign employees around the world, we implement a wide variety of dissemination and human resource development programs under the leadership of the KOMATSU Way Global Institute in order to distribute The KOMATSU Way among all Komatsu Group companies worldwide.

    At overseas subsidiaries, local senior managers, who have worked for Komatsu for many years, translated The KOMATSU Way into their native languages. In this manner, we have ensured that it is easy to understand for all employees in addition to a thorough understanding by top management.

    To reinforce Gemba (workplace) capabilities, the KOMATSU Way Global Institute offers our time-tested TQM (total quality management) training and other courses designed to advance employees' abilities in different specializations, such as proprietary technologies, special skills and management.

  • Figure

    KOMATSU Way Global Institute in Komatsu City, Ishikawa, Japan

Komatsu's Code of Worldwide Business Conduct

The Rules of the Business Community are not limited to laws but also include rules which are generally respected in society. Today, each and every employee is expected to fully become aware of corporate social responsibilities and take action to meet, and even surpass, the reliability demands of society. This is becoming an important part of the Rules.

In 2001, we devised Komatsu's Code of Worldwide Business Conduct to describe basic rules, policies and stance to be followed anywhere in the world. Since then, we have revised it eight times, updating the latest information about the Rules. On par with The KOMATSU Way, Komatsu's Code of Worldwide Business Conduct provides invaluable guidelines, describing what we should be as a company.

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