Top Commitment

While the global economy showed moderate recovery in 2017, it continued to be subject to external forces that limited its improvement, including continued uncertainty in the political and economic climate and a succession of natural disasters in different parts of the world that caused damage on an unprecedented scale. Combined with revolutionary and evolutionary changes in the mobility sector, 2017 was a challenging year for us. We must prepare for the potential of many more turbulent years, as the Bridgestone Group—and in fact all businesses—will continue to face accelerating changes in the global economy and in our industries. Given these circumstances, it is imperative that we continue with our management reform agenda. And the Group believes its road to success—and the achievement of its goals to become a truly global company and Dan-totsu in all aspects of its business— continues to be based on commitment to its Mission and Foundation Framework, which has at its heart the Company philosophy of “Serving Society with Superior Quality” and dedication to the foundations contained within the Bridgestone Essence.

Our accomplishments in 2017 include the continuing enhancement of our corporate governance, which reinforces our management structure, and the launch of our new global CSR commitment “Our Way to Serve.” This commitment builds upon our earlier CSR work and is a key component of the Bridgestone Essence Framework, which is central to our goal of taking management reforms to the next level. The Group also heightened its business execution through the reinforcement of its global management structure, which has stimulated open and constructive discussions, resulting in more effective decision-making. These efforts have resulted in steady progress, strengthening the efficiency and effectiveness of both the management and business execution of the Bridgestone Group.

Reform Framework

By focusing on the three priority issues, the Bridgestone Group has made substantial progress in advancing its management reforms:

The Bridgestone Group is focused on the continuous improvement of its distinctive CSR and Quality Management (Safety/Disaster Prevention, Environment and Quality) activities. This year marks a significant 50-year milestone in the Group’s journey toward cultivating a healthy corporate culture. Fifty years ago, Bridgestone established its company motto, “Serving Society with Superior Quality,” which is now also its Mission within the Bridgestone Essence. Also, in 1968, the Company was awarded the prestigious Deming Prize in the field of Total Quality Management and embarked on a journey to modernize its management processes, systems and governance. Along this 50-year journey, it has institutionalized and operationalized a number of elements that form the basis of its corporate DNA, leading it to where it is today. It also recognizes that its DNA will evolve and strengthen in response to the environment, the marketplace, competition, technology and the political systems within which it operates in the next half century and beyond. A clear example of this evolution is the development of the refined Mission and Foundation Framework including “Our Way to Serve,” which will help define what “Quality Management” needs to be in the future.

The Bridgestone Group is committed enhancing its business domains and delivering value to its stakeholders, all while fulfilling its Mission of “Serving Society with Superior Quality.” In light of those goals, we formulated “Our Way to Serve” to establish the structure and articulate the ideals to achieve these ambitions in the coming years.

Over the past year since its launch, we have taken every opportunity to educate our employees—all around the world—about “Our Way to Serve,” the reason for its creation, what it aims to achieve and the need for each individual’s commitment to this initiative. We firmly believe that to deliver on the responsibility to society, every employee, no matter their role or where they work, must embrace our CSR philosophy contained within “Our Way to Serve” and support the principles and values contained within this commitment.

To ensure its comprehensive implementation, we have also built a collaborative network under the authority of the Global Executive Committee (Global EXCO), the highest body of business execution within the Group. These committees include the Global CSR Enhancement Committee (GCEC), the governing and oversight body for “Our Way to Serve,” as well as the Global Quality Management Committee (GQMC), which is charged with governance and oversight for the company’s Quality Management commitment.^*1 This network will facilitate coordination among area- and function-specific Working Groups and regional Strategic Business Unit (SBU)/CSR management in order to ensure consistency and coordination of effort.

*1 please see: Global CSR Commitment

Sustainable corporate growth is not possible without a sustainable society. Relatively recently, governments around the world have begun to identify and implement programs intended to address the issues facing the creation of a sustainable society. For example, in 2015 the United Nations (UN) adopted the Sustainable Development Goals (SDGs) and the COP 21 Paris Agreement, which became effective in 2016. It calls for a substantial cut in CO₂ emissions in order to limit the increase in global temperatures to less than 2 degrees Celsius in this century.

Taking into account these and other programs and initiatives and utilizing the framework provided by “Our Way to Serve,” the Bridgestone Group must demonstrate its social responsibility by recognizing the economic, social and environmental impact of its global value chain andtake appropriate measures to mitigate impacts that negatively affect the establishment of a sustainable society. It must also work to create common value for customers and society by tapping into its strengths and expertise.

Now incorporated as a key component of the Mission & Foundation Framework, the Environmental Mission Statement of the Bridgestone Group, refined in 2011, is focused on three objectives: being in harmony with nature, valuing natural resources and reducing CO₂ emissions. The Group took a further step in 2012 and formulated its long-term Environmental Vision. This vision looks ahead to the year 2050 and is based on the concept of “decoupling,^*2” which is advocated by the United Nations Environmental Programme (UNEP). As a company in the automotive industry, the Group pays close attention to the impact of CO₂ emissions and has been implementing Group-wide activities focused on reducing not only the emissions produced through customers’ use of its products but also emissions generated during its tire production operations. In 2010, to support its long-term Environmental Vision, the Group adopted the mid-term goal of reducing emissions generated by the customer's use of a tire enough to outweigh emissions generated by raw material procurement, manufacturing and the tire's after-use by 2020. It is steadily progressing toward this ambitious mid-term 2020 goal. Moving forward, it will continue to take additional steps to reduce CO₂ emissions generated by the use of its products in combination with reducing CO₂ emissions from its operations to achieve both its 2020 mid- and 2050 long-term goals.

*2 decoupling population increase and economic development from environmental footprint.
please see: Environment

In addition to its focus on environmental issues, the Bridgestone Group takes a holistic view of sustainability and places importance on addressing social problems and concerns, such as human rights, safety and responsible labor practices, along the value chain. As a Co-Chair company and member of the Tire Industry Project (TIP), operating under the umbrella of the World Business Council for Sustainable Development (WBCSD), in November 2017 Bridgestone participated in the announcement of a new tire industry initiative that will focus on bringing sustainable natural rubber closer to reality. The Bridgestone Group also announced a new Global Sustainable Procurement Policy in February 2018, reflecting its commitment to procurement practices that drive actions to realize long-term environmental, social and economic benefits. The Policy recognizes that as the world’s largest tire and rubber company, Bridgestone has a responsibility to be a leader in sustainability, and that in order to fully deliver on this responsibility, Bridgestone needs and expects its suppliers and partners to work with the Company in pursuit of sustainable supply chains. This requires never-ending efforts and collaborations with all industry players; Bridgestone is fully committed to these efforts.

The Bridgestone Group has always used innovation to develop a wide range of products and services. It remains committed to utilizing these competencies in connection with the development and implementation of business solutions that can address social issues while fulfilling customer expectations. The result will be high quality, innovative benefits for its customers, a positive impact on society and recognition from its customers and end users that Bridgestone is a trusted solutions provider. “Our Way to Serve” will help the Bridgestone Group achieve its aspirational goals to benefit society and fulfill its responsibility in all its business domains.

As it works to become a “truly global company,” it will continue to focus on securing sustainable growth, earnings and competitiveness. At the same time, the Group will proactively address social issues, identify ways to fulfill society’s expectations and contribute to the realization of a sustainable environment and society. Through active dialogue with a wide range of stakeholders, it aims to create common value for its customers, end users, employees and society.