SUSTAINABLE MANAGEMENT
LOGIC MODEL FOR SOCIAL VALUE CREATION
We have identified material issues aligned with our general strategies. We address these material issues through our business activities. In December 2024, we established a logic model to represent the social and economic value impacts of efforts to address material issues and how such efforts contribute to our long-term vision of a self-directed, collaborative society.
Our fourth medium-term plan includes a process for quantifying these impacts and sets out a logic model showing the causal relationship between our business activities and socioeconomic value creation, linking them with long-term overall value creation.
The Social Value We Create, Our Logic Model
In a self-directed collaborative society, people embrace their individuality but respect each other and work together as a community to create new value.
Everyone goes beyond their boundaries, not to conform, but to share diverse ideas and perspectives and positively influence one another, allowing creativity to flourish. That is the kind of society that can take on plethora of socioeconomic challenges this world faces.
To create this self-directed, collaborative society, where socioeconomic issues can continually be addressed, we need to show how our business activities contribute to this goal. That is why we established a logic model. Guided by the evidence from this logic model, we will increase the positive social impacts of our businesses.
The Social Value We Create
Our Logic Model
The logic model defines two broad actions: 1) to grow our four business fields and 2) to address our material issues. These actions generate outputs (products, services, profits) in three ways, labeled Ⓐ, Ⓑ, and Ⓒ. The outputs, in turn, lead to three types of outcome: more people who keep pushing themselves to a higher level, more opportunities for social interaction, and more teams committed to creative solutions for socioeconomic issues. The ultimate impact in terms of social value is the creation of a self-directed, collaborative society that keeps addressing socioeconomic issues.
KPIs to Measure Impact
| Theme | Impact KPI |
|---|---|
| Ⓐ More self-discipline | (Individuality in work, study, and homelife) 1.More opportunities for individuality in work, study, and homelife |
| Ⓑ More collaborative settings | (More opportunities for collaboration) 2.More collaborative spaces or areas and people participating in communities |
| (More diversity and inclusion) 3.Types of barriers to reduce from society |
|
| ⒸHigher quality of co-creation | (More team creativity) 4.More teams becoming successful at co-creation |
| (More opportunities to consider socioeconomic issues) 5.More people addressing socioeconomic issues |
|
| (More opportunities to consider socioeconomic issues) 6.More products that contribute to solving socioeconomic issues |
