Setting out a vision is only half the battle. Communicating it clearly is just as important. When it comes to its Purpose & Culture, launched in November 2023, ORIX Group appears to be succeeding on both fronts.
The reason to think so is its recent ‘Runner-up’ prize in the 2024 Nikkei Integrated Report Awards. Integrated reports are an enhanced version of annual reports that add non-financial metrics, such as data on ESG and commitments to the United Nation’s Sustainable Development Goals, to traditional financial information.
In recent years, Japanese companies have started to put more effort into the production of their integrated reports as they realize they must explain themselves better to shareholders (and, indeed, all stakeholders) – to lay out their strategy and not just describe their operations.
Reflecting this, the Nikkei media group, which publishes Japan’s leading business newspaper and also gives its name to the country’s main stock market index, the Nikkei 225, has instituted an annual awards series for integrated reports. Backed by the powerful Ministry of Economy, Trade and Industry (METI), as well as the main accountancy and analyst trade bodies, the 4th edition in 2024 (in Japanese) saw a record 496 entries with ORIX selected as one of the top 13 winners.
Clear messages
The reason ORIX stood out was that it structured its report explicitly around the Purpose & Culture concept, believes Yoko Morino, Manager of the Investor Relations and Sustainability Promotion Department, who led its production. “We clearly presented where we are headed and what our strengths are,” she adds.
The judges agreed, highlighting that for a group that is involved in such a diverse range of businesses, “the report is designed to make it easy to understand the company’s strengths and characteristics”. They also noted that ORIX “has a clear strategy for increasing its corporate value.”
Further reinforcing the message conveyed through the report, the articulation of the Group Purpose & Culture on page 2 is followed by an interview with Group CEO Makoto Inoue, who not only clarifies ORIX’s strengths in the current economic environment but also discusses the need for agile responses, including entering new business domains. The judges praised that message as “specific and powerful, directed toward both internal and external stakeholders, domestic and international.”
In-depth reporting
The report also gained added interest and depth due to the fact that the IR department enlisted the help of all of the group’s business units and its members made on-site visits instead of relying solely on documents.
For instance, Ms. Morino personally visited the Suginoi Hotel, featured as a value creation case study, to get a better sense of its layout and location, and added depth to the report by interviewing staff directly. The hotel, once used for group tours, was transformed into a family-friendly resort with ORIX’s support. Experiencing facilities like swimsuit-accessible hot springs and local ingredient buffets highlighted the project's value beyond mere words. Visiting allowed her to get a first-hand feel for the value created by these initiatives.
Diversity, another of ORIX’s key cultural values, was showcased by featuring photos and voices of female and younger employees in their daily work environment. Sachiko Nakane, Head of the IR and Sustainability Promotion Department, contrasts this to the many integrated reports that only feature top executives: “For a company like ORIX that values human capital, featuring front-line employees is very meaningful.”
Following up
Having put in so much work and effort, the IR department has made a point of visiting offices and branches with the completed report and soliciting feedback – most of which has been positive, with staff saying that it helped them stay up to date with themes that are gaining social importance and they now have a better understanding of the company’s overall direction and their own role as part of that.
“As societal expectations around sustainability continue to grow, the number of issues companies are expected to address is also increasing. In our business activities, understanding the challenges faced by our corporate clients and using that insight to make meaningful proposals is what enhances ORIX’s value as a company,” notes Ms. Nakane. “I hope this report helps employees gain pride and confidence in their jobs.”
Work on the next integrated report is already underway. Ms. Nakane and Ms. Morino are determined to make the next edition more digital to ensure users can access more detailed information. “The integrated report is not just an external communication tool. It is also a crucial means of sharing values and direction within the company. We want to further expand its potential,” they affirm.
