Guidelines for Organizational and Human Capital Policies

The growth of a company is founded on the growth of its organizations, and the growth of organizations is driven by the growth of people who work therein.
We believe that corporate management rests on the concept that "a company is only as good as its people," and the foundation of corporate management thus consists of so-called human capital, or the ability of each individual, and organizational capital, or the strength of the team. Since 2012, under its human capital policy, the Tsumura Group has consistently placed emphasis on becoming a "People" company by developing its people.

In April 2022, under the concept of philosophy-based management aligned with the Corporate Purpose of "Lively Living for Everyone," we launched the long-term management vision, titled "TSUMURA VISION 'Cho-WA' 2031." Under the new vision, we continue to focus on "people" with a view to realizing Potential-Abilities Development (PAD).

Specifically, the vision stipulates that the Tsumura Group will foster, through dialogue, a culture that challenges each individual to do their best, with purposes and values acting as a centripetal force. It clearly states that we will be a group of people who will pave a new way forward and earn the trust of all, as well as a Kampo-inspired harmonious organization operating in the Kampo and Chinese medicine businesses, for which there is no other model in the world.

Each organization within the Tsumura Group will first fulfill its own function and role as an organization that takes the mechanism of Kampo medicine as its model. Then, each individual will enhance his or her capabilities, work in harmony as a team to realize the vision and achieve great results.

A culture of dialogue as a tool for quality communication is the engine that drives our management, based on a philosophy and vision aligned with the Corporate Purpose. We will promote diversity and inclusion throughout the Group in order to realize the success and growth of all employees, each with their own perspectives, ideas and values.

In addition, we place emphasis on enhancing the "human skills" of each individual by promoting the penetration of the Purpose and Philosophy throughout the Group and fostering a culture of quality, centering on the Tsumura Academy, an in-house human resources development institution. All executives and employees are required to study classic literary works such as The Analects, to cultivate their minds, to think deeply about what kind of company we should be and to make tireless efforts to improve themselves as human beings.

The Tsumura Group, believing that our "organizational and human capital" is the source of our corporate and business value, has formulated its "Organizational and Human Capital Policies" as shown below, and will develop an organization and foster human resources to underpin its philosophy-based management from a long-term perspective and in line with the Corporate Purpose.

Terukazu Kato
President, Representative Director CEO

1. The ideal personnel that we seek

We are committed to developing people with the "five spirits" (mindsets): Aspiration and Passion, Mission, Professionalism, Independence, and Altruism.

Aspiration is about how you look at things. It means never losing sight of what you really seek to accomplish.
Working with lofty aspirations, we can overcome high barriers to realize our vision.

A great deal of energy is needed to do this. Energy comes from our Aspiration and the Passion that is in our heart. We must never lose this Aspiration and Passion. The second mindset is a sense of Mission. There should always be something that only you can do. People with a sense of mission can stay strong in their life. The third is Professionalism. We must remain firmly aware that we are professionals pioneering our own path in the Kampo business, for which there is no model anywhere in the world. Constant self-improvement is necessary to acquire the high level of expertise and skills needed to be universally recognized as a professional. The fourth is Independence. Do not be passive. You can lead others toward a bright future by thinking for yourself, actively speaking up, and taking action. The fifth and final mindset is Altruism. Altruism is about setting aside your own interests and serving others. To be a righteous person, be considerate of others and serve them well. This is the ultimate model that we should strive to emulate as people engaging in Kampo medicine, a traditional Japanese medicine.

2. The ideal organization that we aim to be

We seek to forge a new path for ourselves in the Kampo and traditional Chinese medicine business, which is an area that has no previous models to base ourselves on, with the goal of becoming a group of people that is trusted by everyone and an organization that is similar to Kampo in how it is composed.

Each of the crude drugs involve many ingredients, and are recognized as having medicinal benefits and pharmacological effects. In other words, each has efficacy and its own individuality. We strongly believe that the harmony that is created from being a Kampo-analogous organization--in which the departments or personnel are regarded as being comparable to crude drugs, and the company or the departments are considered as the Kampo formulation--is the ideal state of being of the personnel and organization that we seek to achieve. "A company, when considered as being a Kampo, is composed of independently functioning departments that are comparable to crude drugs. It generates great synergetic effects when these departments (crude drugs) harmonize and collaborate with each other to head in the same direction. And when the departments are considered as being a Kampo, they are composed of crude drugs known as personnel in which each person possesses different capabilities that are brought together in harmony within the scope of their roles and delegated authorities to achieve the goals of that department." We believe that this is the ideal organization for the Tsumura Group.

3. The corporate culture that we aim to have

We are committed to creating a corporate culture that draws out people's potential through dialogue shaped by objectives and values as the central force.
People in the Tsumura Group have tremendous potential that is yet to be drawn out. We promote "quality communication" to help each individual become aware of their potential and realize the full extent of it.
Quality communication refers to dialogue that focuses on objectives and values. Ongoing dialogue aimed at meeting objectives and upholding values is pursued at each workplace of the Tsumura Group.
From this practice, a group of people who share a common set of philosophies and visions is formed. Each member of the group works with a sense of mission regarding their own role and achieves great results as a member of an organization that operates by a mechanism akin to that of Kampo medicine. Results are about making a positive difference for our customers, society, and the global environment.
The dialogue-driven culture of quality communication is the engine that keeps the value-creating cycle of our unique "Seven Types of Capital" turning.

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