July 24, 2007,08:50 +0900(JST) VISION 2012 (4): R&D, capital expenditure and CSR
To conclude this series about VISION 2012, I’d like to write about what VISION 2012 says regarding R&D, capital expenditure, and corporate social responsibility (CSR).
To ensure that our diversified Group continues to grow, it is essential to consider developing new products that are both related and totally unrelated to our existing business categories. We keep working on fundamental research looking 10 to 20 years ahead.
We are thinking about setting the target ratio of new product sales at 30% for fiscal 2013 (April 2012 to March 2013). Our new product development themes are “Environment and Resource Conservation,” “Life Science,” and “Safe, Secure and Ubiquitous Society” in consideration of society’s needs, which expand as living standards continue to improve. R&D will be based on an accurate understanding of customer needs, so as to ensure the Group’s continuous growth.
In VISION 2012, a total of 1 trillion yen is earmarked for prior investment over the next five years, including capital expenditure and R&D. Of this, a total of 400 billion yen will be invested in R&D. For our existing business categories, R&D will mainly concern material renovation and product modularization, so as to maintain and improve our competitiveness. Moreover, as I’ve just stated, we’ll also focus our R&D efforts on developing brand new products that may be pillars of our future activities. This will require active support for new business category development.
For the same five-year period, a total of 600 billion yen will be expended on capital expenditure, basically including investment in priority areas of the core business categories, and more active overseas investment aimed at enhancing our worldwide presence.
Finally, as part of our CSR activity, this year, which marks the 110th anniversary of our operation, we established the “Sumitomo Electric Group Basic Policies on Social Contributions,” from the standpoint of performing our social duties as a corporate member of society.
The Basic Policies were determined based on three key phrases, “respect for human resources,” “attaching importance to technology” and “creating a better society and environment,” in compliance with the Sumitomo Business Spirit and the Sumitomo Electric Group Corporate Principles. More specifically we will be more active than ever in our social contributions in terms of developing human resources, promoting community-oriented social contribution programs and supporting employees’ voluntary social contribution activities.
As concrete measures, from fiscal 2008 (April 2007 to March 2008) to fiscal 2009 (April 2008 to March 2009) the Sumitomo Electric Group will establish the Sumitomo Electric Group Scholarship and Fellowship Fund, launch a special subsidiary for hiring disabled persons and introduce a volunteer leave system. Moreover, community service activities that the Group has been carrying out until now will be continued and reinforced.
By performing our duties from the CSR perspective, in addition to our business activities we hope to take steady steps toward becoming a truly Glorious Excellent Company, with support from a wide spectrum of stakeholders, while maximizing value for shareholders.