Third Party Opinions

Business Competitiveness of Panasonic’s CSR Initiatives

Strengthening intangibles such as brand, customer satisfaction, environmental commitment, and the development of the knowledge base and human capital of the company are determinant for ensuring sustainable growth. Intangibles are keys for differentiating products and services beyond functionality and scope. The electronics and appliances markets are characterized by quick changes in tastes and trends, and the ability to constantly innovate is highly required. Understanding local needs and lifestyles is also key. Decentralization of R&D and design centers is a rewarding strategy, where Panasonic is in the forefront, increasing the chance of being aligned with local cultures. Furthermore, shorter product lifecycles contribute to an increase of waste volumes and demand of scarce raw materials. Since 2000 Panasonic through its subsidiary METEC（Matsushita Eco Technology Center）engages in the recycling of four major electric appliances（televisions, washing machines, refrigerators and air conditioners）. Extending the recycling program to other electric appliances and electronic components would be consequent and an essential development. In addition, the inclusion of an improved management of the environmental challenges throughout the whole product life into corporate strategy would contribute to a durable differentiation from competitors.

Panasonic’s commitment toward sustainability is constantly growing over time, underlying the efforts of the management to let sustainability permeate into the corporate culture and daily activities. In the environmental dimension, the company demonstrated over the years several improvements. Panasonic reduced its own production emissions, those of its supply chain, as well as the impact of its products. In addition to an increasing number of highly ranked energy-efficient products, Panasonic is engaged in promoting the adoption of environmentally sustainable products, and these initiatives have a dramatic influence on energy efficiency.

To make sure that the sustainability engagement of a company is perceived accordingly by stakeholders, internal structures and organization need to be aligned to the sustainability strategy. Therefore communication within the group should be open and transparent. Panasonic sets its priorities in enabling correct interaction between management and employees. Transparency of human resources management is realized by using key performance indicators. Appropriate skill development of Panasonic’s human capital is ensured by an evaluation system introduced back in 1996. The next challenge for Panasonic’s human capital development would be to actively and regularly measure the results of the skill development strategy in term of impact on corporate returns and profitability. This would allow Panasonic to fine tune efforts and align them to the long term strategy.

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