JAPANESE

Management Policies

Management Principles

Komatsu conducts business activities focusing on the following three pillars of its management principles.

(1) Quality and Reliability

The cornerstone of Komatsu's management is commitment to Quality and Reliability for maximization of its corporate value. This policy not only applies to our products and services but also extends to all other aspects of the Komatsu Group, including organizations, businesses, employees and management.

The following five guidelines indicate what we must do to enhance the Quality and Reliability of these above aspects. These will also serve as Komatsu corporate guidelines and are expected to be the beacon for every employee of the Komatsu Group in performing his/her daily tasks. They are to:

  1. Constantly provide environment-friendly, safe and innovative products/services and systems from the viewpoint of our customers;
  2. Constantly promote self-initiated innovations in technology and management;
  3. Promote consolidated management from global perspective;
  4. Work for the community as a good corporate citizen; and
  5. Provide employees with opportunities for challenge and creativity.

(2) Emphasis on Corporate Governance

To maximize our corporate value, it is important for us to design a framework in which we can enhance our corporate value in a continuous, steadfast manner. This task calls for not only maximizing the market value of Komatsu by increasing the stock price and working to expand sales and profits but also striving to satisfy stakeholders, especially customers, to the fullest extent.

Top management officers of Komatsu Group companies are required to have full awareness of Corporate Social Responsibility ("CSR"), eliminate risky business with no substance and conduct steady management, while making constant efforts to ensure the Quality and Reliability of management. They are also required to promote corporate governance-driven management by revitalizing the Board of Directors, establishing the internal controls system, enhancing the transparency of management, and implementing other related measures.

All employees of Komatsu Group companies are required not to postpone but to promptly work on solutions and corrections when they discover issues and/or problems related to the Rules in all business areas and domains.

(3) Promotion of the "Spirit of Manufacturers"

It is extremely important for Komatsu as a manufacturer to promote reform based on the "Spirit of Manufacturers" concept in order to enhance its competitiveness.

This concept means that we, as a manufacturer, must provide products (hardware and software) that make our customers feel satisfied. It also means that we have to rise to every challenge and to constantly produce safe and innovative products in the spirit of unified teamwork of all employees, from research and development, procurement, production and sales through after-sales service. It also emphasizes that we must care about environmental friendliness in all our activities through product lifecycle.

This spirit is the source of Komatsu's competitiveness. By reinforcing our original system of manufacturing, we will strive to develop products, services and systems with outstanding features that will surpass those of our competitors. Our production bases worldwide will strive to achieve top-level cost competitiveness in their respective regions.