How The Philosophy Works

The Unique Philosophy at the Heart of Kyocera

The Kyocera Philosophy was born from thorough reflection on how people and organizations should be based on foundational truths and principles. Originating from Kyocera’s founder, Kazuo Inamori, and his own real-world experiences, the Kyocera Philosophy has transcended time to become the DNA of the Kyocera Group. The Kyocera Philosophy is deeply rooted in the Kyocera Group's corporate culture and serves as an unwavering guideline for realizing the company’s Management Rationale.

Conceptual diagram of the Kyocera Group's value creation process

Conceptual diagram of
the Kyocera Group's value creation process

At the heart of the Kyocera Philosophy, which serves as the foundation for the company’s value creation process, lies the fundamental principle to "Do what is right as a human being." Five elements support each other as unshakable pillars of the Philosophy: “Making the Right Decisions,” “An Altruistic Mind,” “Management by All,” “Dedicated Effort,” and “New Challenges.” Building on this foundation, the Kyocera Group aims to create new value by sharing common decision-making criteria and encouraging each employee to think and act independently in their daily work. Decisions based on truths and principles motivate action, action creates new value, and that value leads to new challenges. The continuous fine-tuning of this cycle is the driving force of Kyocera's ongoing evolution on the path to becoming “The Company” that we aspire to be.

“Do What Is Right as a Human Being”

Ever since Kyocera was founded, all of the company’s decisions have been based on the truths and principles that flow from the question “What is the right thing to do as a human being?” Without being swayed by conventional business practices, we place importance on returning to “the essence of matters” in any situation. This universal standard serves as the foundation for making the right decisions regardless of country or region, even when faced with an unprecedented economic environment.

Making the Right Decisions

Simply put, Kyocera's emphasis on “Make the Right Decisions” follows from the principle “Do what is right as a human being.” This standard for making decisions is based on fundamental ethics and morals rooted in the inherent goodness of human beings. For example, the simple basic moral guidelines like “Do not be greedy,” “Do not deceive others,” “Do not lie,” and “Be honest” that we learned from our parents and teachers in our childhood are universal concepts that serve as the standard for every Kyocera employee in our daily decisions and actions.

<Related principles from the Kyocera Philosophy>
The Result of Our
Life or
Work=
Attitude×Effort×
Ability

The outcome of our life or work is the product of three factors: attitude, effort and ability.
Effort and ability range from 0 to +100 points. Since these two numbers are multiplied rather than simply added, it means that someone who exerts unbeatable efforts to compensate for “average” abilities can accomplish more than a genius who makes only a minimal effort. This product is further multiplied by attitude, which can range from −100 to +100. Depending on our attitude, the outcome of our work and our life can change by 180 degrees.
Thus, while ability and effort are important, it is our attitude that counts the most.

Insist on Playing Fair

Kyocera follows a “Fair Play Principle” to conduct its business fairly and squarely. Thus, it disdains the “no holds barred” policy some companies adopt for the sake of making a profit, either by cheating on the rules or cooking the books.
In sports, we are impressed by games where the rules are respected. We consider it “cool” that athletes follow the Fair Play Principle. Any violation of a rule is freely and publicly pointed out.
For work to always remain a “cool” place that is refreshing and full of vitality, each of us must be a fair player and a strict umpire.

Pursue Profit Fairly

A company must be profitable to survive. Being profitable is neither shameful nor unrighteous.
A price that is determined through free-market competition is a fair price, and the profit earned is a just profit. Fierce competition promotes rationalization, while raising added value increases profit.
Today's world is rampant with management that disdains tedious efforts, seeking instead to make a fast fortune through speculative or illegal deals. Kyocera's management, however, must persist in doing business fairly, pursuing a fair profit and contributing to society.

An Altruistic Mind

“An Altruistic Mind” is a key pillar of decision-making at Kyocera. It means making decisions that benefit others, rather than merely prioritizing one's own profit or convenience. By acting based on altruism, we have established strong bonds of trust with our customers and business partners, which are vital for supporting the sustainable growth of the company.

<Related principles from the Kyocera Philosophy>
Be Thankful

Without harmony among employees, a company can't manufacture products that make customers happy, because products reflect the spirit of their makers. If employees have self-serving attitudes, there can be no harmony among them.
It is thanks to the assistance of the people around us, our colleagues and our families, as well as our customers, that we are what we are today and can work freely. We should never forget others' help.
Keeping this in mind, we must always be thankful to the people around us, trust in them, and work in partnership with them.

Is My Motive Virtuous
or Selfish?

If we want to realize an ambitious dream, we must ask ourselves, “Are our motives virtuous?” That is, we must judge on our own whether our motive is good or bad.
Virtue is a universal good that everyone agrees on. It does not benefit just one person and is not aimed at just making a person look good. Rather, it is something that everyone would describe as being altruistic and acceptable. In carrying out our work, it is important to ask if there is any “selfish motive.” We must be on guard so that our work does not revolve around self-centered aims.
If our motive is virtuous and unselfish, the outcome is obvious: we are certain to succeed.

The “Customer-First” Principle

Kyocera started out as an electronic parts manufacturer, but it was always independent, and never a subcontractor.
Being independent meant continuously producing products that met the needs of our customers. We had to be more advanced technologically than our customers, and able to meet their satisfaction in all the areas of delivery, quality, price and innovativeness.
We challenged ourselves to become totally committed to our customers' needs, even if it meant rejecting conventional concepts. “Making customers happy” is a basic value of any business, and the only way to continue earning profits.

Management by All

Ever since Kyocera was founded with just 28 employees, we have always valued the principle of “Management by All.” Corporate management information is shared with employees based on a relationship of trust, and as a result, all employees are focused on the company's growth and act proactively. This concept of every employee having a management mindset and working together as one to achieve ambitious goals has been an important source of Kyocera's growth.

<Related principles from the Kyocera Philosophy>
Align Mental Vectors

Human beings differ in their mindsets. Imagine what would happen if employees all behaved according to their own individual mindsets.
If employees' efforts (vectors) are not aligned, the group will be dispersed, and generate no momentum for the company. This is clear in team sports such as baseball and soccer. There is a marked difference between a team whose players have united their minds toward victory, and a team whose players are aiming only for personal glory.
When all efforts are aligned, the force they create multiplies to produce amazing results. One plus one may become five, or even ten.

Raise Cost-
Consciousness

Kyocera adopted an “Hourly Efficiency System” so that each Amoeba's performance would be clearly known to everyone. All employees should seriously contemplate how to improve their Amoeba's hourly efficiency, and implement new ideas.
Hourly efficiency awareness teaches us the importance of not wasting anything, even a pencil or a paper clip.
We must raise our profit consciousness to the point where raw materials spilled on the floor or defective products piled up in the corner begin to look like stacks of wasted money.

Maximize Revenues, Minimize Expenses
(Count What Comes in,
and Control
What Goes Out)

Managing a business is a simple matter. It is based on maximizing revenues and minimizing expenses. Profit is simply the difference between the two, and a result of this effort. Therefore, we need to be concerned only with maximizing revenues and minimizing expenses.
We must not be trapped into the so-called “common sense” fixation that raw material costs must be a specified percent of production, or that sales promotion must be a set percentage.
The important thing is to exercise our creativity and exert tenacious efforts to maximize revenues and minimize expenses.

Dedicated Effort

“Dedicated Effort” means to have big dreams for the future, while at the same time tackling daily work tasks with diligence and wholehearted determination. When faced with a wide gap between our goals and reality, even if amazing results cannot be attained right away, success can eventually be achieved through dedicated effort. The combined effort of each employee has always been a major source of Kyocera's growth.

<Related principles from the Kyocera Philosophy>
Listen to What
the Product Says

When a problem occurs or when our work encounters a roadblock, we must continue to examine the matter humbly and seriously.
For example, we may face a dead-end situation on our production floor where no matter what we do, our yield does not improve. At times like this, we must thoroughly and objectively examine every detail of our product, machinery, material, jigs and fixtures. We will then hear the cry of defective products and ill-maintained equipment. Our products themselves will give us clues to solving the problem.
We must humbly observe reality as it is, with no preconceptions or bias.

When You Think It's
Time to Give Up,
That's When the Real Work Begins

Whether or not we can complete a job depends more on our passion and tenacity than on our talents or abilities. We must remain tenacious like the legendary snapping turtle that never lets go once it bites. When the situation looks most bleak, that's when the real work begins.
A strong zeal and passion can captivate a person's mind, day and night. They can permeate our subconscious minds and even help to prepare us physically to succeed in materializing our vision.
To achieve any extraordinary feat, it is necessary to hold tightly to our burning desire and passion, until the very end.

Live Each Day
Earnestly

Life is a drama in which each one of us plays the leading role. The question is what scenario we write for this drama.
There may be lives that are totally at the mercy of fate. However, I believe that we can write our own script and play the lead role by changing and building our heart and soul. Indeed, I believe that our life depends on how we script the scenario. The drama will be totally different for a person who leads an aimless life as compared with one who tries to live earnestly.
By cherishing ourselves, and living every moment of every day earnestly, we can drastically change our lives.

New Challenges

Throughout the company's history, Kyocera has time and again deliberately chosen paths that others feared to take, forging ahead with a belief in infinite possibilities. Much like navigating the open sea without a chart or compass, Kyocera has boldly pioneered uncharted territory and developed its own unique technologies and businesses. No matter how big the company becomes, our commitment to dream with a global perspective and boldly forge ahead into the future will continue to be the driving force behind the creation of new value.

<Related principles from the Kyocera Philosophy>
Envision Our Future

Reality is harsh. We often find it difficult just to survive until tomorrow. Even then, our lives depend on our ability to envision our future. It is essential to maintain ambitious dreams and goals of how we want our work and our lives to be.
I believe that Kyocera grew to its current state because we kept dreaming of becoming the premier enterprise: first in our district, then in the city of Kyoto, then in Japan, and finally in the world.
We must dream splendid dreams and follow them throughout our lives. This gives meaning to our lives and makes them enjoyable.

Pursue Unlimited
Human Potential

People who are innovative tend to be confident in their abilities. If we let our current potential choose which future accomplishments are feasible, nothing new or challenging could ever be achieved. Human potential expands limitlessly as we continue to strive.
To accomplish anything worthwhile, we must first believe that “human potential is limitless,” and maintain an ardent desire to “achieve the goal, no matter what.” Kyocera, a company that started from scratch and grew to become a leading manufacturer, demonstrates this.
We must always believe in our unlimited potential and maintain an attitude to bravely meet any challenge.

Carve Your Own Way

Nobody can guarantee our future. No matter how splendid our company's performance may be today, it is merely the result of past efforts. Nobody can predict what the future will hold.
The only way to ensure a brilliant future for our company is to work as hard as possible in our assigned roles -- and perform our tasks in the best way possible.
We can't rely on others or assume that someone else will do our work. We must first recognize our own roles and responsibilities, and accept the fact that we must be the ones to carry them out successfully.