DIALOGUE between the President and External Director
Background and expectations of our new external director
Ninoyu : We welcomed a new female external director from this fiscal year. Ms. Miyama, you have experience in sales promotion while working in the development department of Dai Nippon Printing Co., Ltd. (DNP). Our company conducts product development by thinking about technological development as a starting point; therefore we lack most of the ‘‘perception to sell products to customers’’ that you have in abundance. Also, we appointed you as you are focused on human resource development and the promotion of Diversity and Inclusion (D&I).
MIYAMA : It was a surprise to me to receive your offer shortly after I was appointed as a director at DNP, and I was very grateful to receive it. In addition to my track record as an engineer, I have also been involved in a wide range of fields, including administrative work and human resource development, so I would like to contribute to your company with these experiences.
Ninoyu : You are also a valuable human resource who has experienced the rewards and challenges of a female manager. One of the reasons for appointing you, Ms. Miyama, is that it is a clear indication of our desire for women to play an active role in our company, as our company has an issue that there are no female officers, general managers, or other managerial positions.
To improve the effectiveness of the board of directors
Ninoyu : One of the important points of the Corporate Governance Code revised in 2021 is to improve the functions of the board of directors. Based on this, I feel that the effectiveness of the board of directors has been improved by reviewing its role and making it more open, frank, and capable of a two-way exchange of opinions.
Miyama : When I was appointed as an external director, I was impressed by your explanation of what the company's board of directors should be like, as a new director. The roles expected of me are wide-ranging and demand high standards. Therefore, I would like to tighten the reins as a partner that supports the management of Tokai Rika.
Ninoyu : I am very happy to hear that. From this fiscal year, half of all directors are external directors, and the number of directors from different industries has increased, so scrupulous information sharing is essential. I believe that if companies are highly independent from each other, there is no need to be too sensitive about information disclosure to external directors. I think it would be more valuable if you could attend the board of directors meeting after having a solid understanding of our company's vision, product-specific scenarios, and the background behind them, as this will allow us to have more meaningful discussions.
Miyama : That's right. As external directors need to make decisions based on limited information, I believe that a wide range of information from the company prior to the board of directors meeting will broaden the scope of our opinions and improve the quality of discussions.
Ninoyu : As we have worked as members of the Toyota Group, we tend to have a narrow perspective in some instances. On the other hand, because external directors have a perspective that we don't have based on their diverse experiences, we expect constructive opinions from a third party's point of view.
Miyama : It is precisely because I am a person who has not been immersed in Tokai Rika's way of thinking that I am able to express my frank opinions from a neutral standpoint. In that sense, it may be easier for us to express a wide range of opinions, regardless of their importance, if opportunities for free and open discussion are provided in addition to the board of directors meetings.
Moreover, from the perspective of sustainability management, we are now dealing with issues such as climate change and human rights, which are beyond our specialized business activities, within the scope of our management issues. It is essential to understand and consider a wider range of stakeholders, so having a diverse board of directors can be a great advantage, and it also helps us prevent fatal problems from occurring. I will do my best from various perspectives so that I can contribute to the improvement of effectiveness.
What Tokai Rika should aim for in an era of change
Miyama : My first impression of Tokai Rika is that it works seriously and strives to respond to customer requests. This, exactly, is Tokai Rika’s strength. I feel that this is due to the company's stance of valuing the spirit of challenge expressed in the words of your founder, ‘‘Do what others won’t do,’’ and the ‘‘Tokai Rika-ism,’’ or A Call to Thought and Action based on these words.
Ninoyu : You're right. ‘‘Tokai Rika-ism,’’ which summarizes the spirit of our founder and our predecessors, is the most important value for all employees when working.
Miyama : On the other hand, in order to survive in the automotive industry, which has entered a period of great change, it is necessary to make drastic changes while maintaining good traditions. First of all, each and every one of us should take the initiative in envisioning what the company should be like, and having the awareness to change the company while getting others involved. Furthermore, we should keep our antennas alert to the outside world more than ever, and proceed with development from the consumer's point of view. That should be the first step in transforming into a company that is needed by society.
Ninoyu : Your perspective is something that only people who have been involved consistently from development to sales can have. This year is also an important year, in which we formulated our first mid-term management plan and presented our future direction and growth strategy to stakeholders inside and outside the company. Do you have any ideas regarding future strategies?
Miyama : One of the great things about Tokai Rika is its connection and contribution to the local community. If a model case for mutual development is created through the active exchange of opinions with local residents, it can be expected to lead to a successful case in terms of sustainability management.
Ninoyu : It’s thanks to the understanding of the local community that we are able to focus on our business here. How we can contribute to the local community has always been our issue. If we can match each other's needs and build a stronger relationship of trust, we will be able to create new measures that are close to the local people, and it seems that a virtuous circle will be created.
Miyama : Similarly, it is essential to change the way people think about women's active participation in the promotion of D&I. The top management has already expressed their intentions, and the system is in the process of being put in place. If female employees face their work with a higher awareness, their behavior and attitude will change, and the number of female employees who want to play an active role in managerial positions should naturally increase. I would like to do my best to help with human resource development, such as raising awareness and creating systems.
Ninoyu : That's right. So the first step is for everyone to see it as something they themselves are involved with. Ms. Miyama, I hope that you will be a role model for our female employees and that you will play a role in fostering an atmosphere in which female employees can overcome barriers on their own.
Miyama : Regarding the growth of human resources, it is important to produce results at work, but it is also important to be evaluated as a person, such as expressing gratitude to each other and acknowledging each other's humanity. Having both of these values allows people to work hard and promote growth. In promoting human resource development, we must not forget to respect the individual, and this is not limited to women. This attitude is the key to promoting D&I and is directly linked to the growth of the company. Through the accumulation of these efforts, Tokai Rika will become an indispensable presence in the mobility society in the near future. I would like all of our stakeholders to look forward to the future development of Tokai Rika.
Ninoyu : In addition, the support of our stakeholders, who have supported us over the years, is essential for our continued growth. We will continue to take on challenges for the future with the determination to protect the Tokai Rika that everyone has built, so please continue to support us.