Within the spirit of our corporate statement, "Changes for the Better," we will continually seek to improve, pressing ahead with sincerity, and we will continue our efforts indefinitely in order to help realize a sustainable society.
Prioritizing Corporate Social Responsibilities Since the Time of Our Founding
In recent years, the corporate operating environment has been undergoing dramatic changes reflecting the global situation, revisions of laws, and other factors. What must remain steadfast regardless of how the times may change is a commitment to corporate ethics and compliance and not to compromise on environmental issues and product quality.
This commitment of the Mitsubishi Electric Group was first articulated in the Keiei no Yotei, or Keys to Management, which was drawn up at the time of the company's founding in 1921. The spirit of this document, which states our contributions in areas such as the prosperity of society, product quality and customer satisfaction, lives on today in our Corporate Mission and Seven Guiding Principles. With these tenets as our core principles, the company promotes various initiatives in order to carry out our Corporate Social Responsibilities.
Economic Aspects: Enhancing Corporate Value
In fiscal 2007, the Mitsubishi Electric Group achieved all three of its management targets due to structural reforms, changes in business conditions, the application of measures to strengthen production and sales systems in both domestic and overseas markets, the promotion of collaborative efforts to boost competitiveness and other factors.
For fiscal 2008 we have set more challenging targets to lower the ratio of interest-bearing debt to total assets to 15% or less. We will also carry on our initiatives to continually hit other targets.
Management Target to be Continuously Achieved
| Management Target | 2006 results | |
|---|---|---|
| Ratio of operating income to net sales | 5% or more | 6.0% |
| ROE | 10% or more | 12.3% |
| Ratio of interest-bearing debt to total assets | 20% or less => 15% or less | 18.6% |
Environmental Aspects: Carrying out Our Fifth Environmental Plan
Mitsubishi Electric Group promotes environmental management through its Environmental Plan, which we develop every three years. In fiscal 2007, the first year of our Fifth Environmental Plan, we worked on initiatives of the countermeasure to global warming, and for example, we reduced emission of carbon dioxide (CO2) by 10,052 tons within fiscal 2007. We have also been active in promoting local environmental philanthropy by activities such as the Mitsubishi Electric Yagai Kyoshitsu, or an "outdoor classroom" of nature conservation lectures, in order to cultivate an environmental mindset.
Based on the Fifth Environmental Plan, we will continue in fiscal 2008 to enhance environmental management, promote factories and offices that place less of a burden on the environment, bolster businesses that make positive contributions to the environment, and more.
Social Aspects: Contribution to Society through Technology
As a member of society, it is necessary to demonstrate Corporate Social Responsibility through initiatives in such areas as corporate ethics and compliance, as well as philanthropy. It is also important to contribute to society through various technologies that we have developed up to now. One example is our high-density ozone generator, which received the Prime Minister's Prize at the 36th Japan Industrial Technology Awards. It is an environmental-friendly way of processing water by ozone, which is expected to contribute to the realization of a recycling-based society.
In fiscal 2008 we will put our CSR initiatives into practice and continue to contribute to society through the Group's technologies, products and services.
Through these initiatives, the Mitsubishi Electric Group will work to gain trust from stakeholders and help realize a sustainable society. Within the spirit of our corporate statement, "Changes for the Better," we will constantly pursue improvement and continue to make our best efforts. We greatly appreciate everyone's understanding and support.
