In the aftermath of the Recruit scandal, we engaged in extensive internal discussion to explore several key questions. We examined whether we had the ability to take a step back and objectively consider how our corporate attitude and activities were viewed by society. We also examined our awareness of the fact that companies are public entities with responsibilities as such.
Before the Recruit scandal, the Three Management Principles that formed our Corporate Creed were: quest for commercial rationality, contributions to society, and respect for individuals.
Of these, we eventually decided to stop using "quest for commercial rationality" and instead adopt "contributions to society (by creating new value through information)." While we understand that the quest for commercial rationality is vital to the existence of a company, this decision was made after examining why we are needed in society and how we can contribute to society following the Recruit scandal.
From the perspective of life planning, we offer new value to the world by pursuing ways to help enrich the heart. We are focused on continuing to be a conscientious, sincere company that is embraced by and consistently moves hand in hand with society.
Even after more than 20 years, our Management Philosophy established in the wake of the Recruit scandal and our subsequently established Code of Ethics both help define the purpose and reason for our existence as a company and provide direction for our business.
The shares-for-favors Recruit scandal was the starting point of establishing our current Management Philosophy. This page provides information on how the Recruit scandal was perceived within our company at the time and how it has helped us become what we are today.
While the Recruit scandal made headlines day and night, we strove to regain the confidence of our clients and society. In an attempt to re-invent ourselves as a company, in December 1988 we asked employees for proposals on how to transform our company into a new Recruit. This was a company-wide effort that involved a wide-ranging call for suggestions from employees.
Amid the harsh reality we faced after the Recruit scandal, this effort reflected our commitment to use it as an opportunity to transform ourselves into a new Recruit by encouraging each employee to confront the situation, think, make suggestions, and take action with a sense of ownership rather than waiting passively based on the assumption that the management team would rectify the situation. All proposals were welcomed, including those concerning new business undertakings and business improvements, provided they were forward looking. The effort represented a key opportunity for employees to demonstrate their own initiative in considering and discussing the future direction of Recruit.
Original announcement asking employees to submit proposals
At a company-wide managers meeting in 1989, we discussed establishing a new Recruit and reaffirmed our commitment to remain firmly aware of our position as a member of society. Additionally, in the process of transforming into a new Recruit, we used our in-house newsletter, round-table discussions, and other forms of communication to share our intentions and thoughts on how to restore public confidence and develop new business.
These proposals for transforming ourselves into a new Recruit still serve as the cornerstone of Recruit's Management Philosophy and Code of Ethics today.