SONY

Rules for Passing Down Sony's Long-Earned Trust

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The Sony Group Code of Conduct, which serves as the basic behavioral guideline for all Sony Group employees, has been revised again, six years after the previous revision. The new Code of Conduct, which consists of seven chapters including "Earn Trust" and "Contribute to the World," has added in its booklet a message from Akio Morita, one of the founders of Sony, which states, "Just as each person has their own character and virtues, I want our company to continue to be loved, and respected, by people everywhere." Items and content of the Code have been revised to make them easier to use, more understandable, and more actionable in light of changes in society as a whole and in Sony itself.
In the midst of constant change, how can Sony pass down the trust it has built over the years while devising new rules to protect the company and its employees? We interviewed Yoko Hattori of Ethics & Policy Section, Ethics & Trust Department, Sony Group Corporation, who led this project, to learn about Sony's approach to answering this question and her mindset and aims in revising the Sony Group Code of Conduct.

Making behavioral guidelines in accordance with the times that are easy for everyone to understand, use, and act accordingly

The Code of Conduct, which was first created nearly twenty years ago, contained all the basic rules of what should be done and was designed to be easy to understand. However, there have been many advances in society, including technology and other areas, that have led to various changes in the six years since the last revision in 2018.

"For example, when we talk about our advertising and sales, what was being done in the old days of TV commercials is completely different from what we are doing in today's data-driven digital marketing. Technology is also changing rapidly, and what is acceptable and what is not can have a significant impact on how to run a real business."

In light of these changes, the Code was made to reflect the current trends of the world and technology in order to make behavioral guidelines in accordance with the times. The entire content of the Code was reviewed, resulting in adding new items such as "Use Technology Responsibly," to address the ethical implications of advanced technology, which has been the subject of recent discussion.

Over time, Sony's business portfolio has changed as well. In 2003, when the first Code of Conduct was formulated, Sony's business was focused on electronics, but today various entertainment businesses account for more than half of Sony's sales. The members involved took into consideration the diversity of Sony's businesses as they worked to make a Code of Conduct that employees in all business units around the world can easily understand, follow and act appropriately.

"The previous Code of Conduct still had parts written in a way that made people think of electronics, but now, it needs to be balanced with our six main business segments. We paid attention to the wording in such a way that the people in each company could see it as their own."

Hattori also explains that, in the world of corporate compliance, having a set of rules that everyone follows will help protect the company and its employees in case something happens, however, it is no longer good enough to just have the rules. There is a recent trend to make such rules easy for employees to use, understand, and follow and act, and thus the rules are generally becoming simpler. Therefore, with the full support of the compliance officers in regions and businesses and members of the relevant departments, the language of the Code was discussed, reviewed and rewritten multiple times.

"We agreed that we should outline important principles, and also add supplementary information so that people can take actions accordingly in each business situation, and discussed what guidance would be more useful, such as ‘If you have any concerns regarding advertising and marketing, please contact your legal department.'"

Passing down a culture that values trust

Hattori, who joined Sony two years before the Code of Conduct was issued, remembers the then-legal executive, whom she greatly admired, writing the code himself in his office.

"I am very grateful and feel fortunate to become involved in the revision work. The code was written by someone who made me think, ‘If I could be like him, I would really enjoy being in legal work.'"

In revising a work with such legacy, Hattori and the other members were conscious of maintaining a sense of continuity.
"The Code of Conduct was established in 2003. It was documented then, but Sony's emphasis of trust in its brand and its culture of ethics goes back even further."

Code of Conduct booklets published in 2003 (left) and revised in 2018 (right)

In considering how to convey this sense of continuity, the members came across the words of Morita. Hattori recalls that finding an internal speech from Morita that appeared in the company's newsletter "Times" in 1990 was one of the most memorable moments of the project.

Our History of Ethical Culture ~In our Founder's Words~ Following the acquisitions of CBS Records and Columbia Pictures, Sony has come to be regarded as the leading Japanese company and the most advanced high-tech company. The increased attention to us means we could be publicly criticized anytime. I think we at Sony should be aware of this attention, and think again whether our activities,including advertising,promotion,publicity,products,and services,need to change or not. It is through continuous effort and dedication over the past 40 years that our company Sony has become trusted around the wourld.Please think about that again. Our business should be something that contributes to our company's legacy,From every product we create.to how we sell that product.and provide after sales support - we cannot build trust among the diverse people of the world without paying careful attention to every one of our actions.We have strived to acheve that goal and that has been our company's way,As a result,today,trust for Sony exists worldwide,and we have gained many Sony fans.A good reputation is not easily achieved but can be quickly damaged.Just as each person has their own character and virtues,Iwant our company to continue to be loved,and respected,by people everywhere. Excerpt from an article on Akio Morita's presentation at internal global annual meeting with business heads / Times in-house magagine (July 10,1990) Akio Morita's message in the Code of Conduct booklet

"We thought the founders must have said something about our ethical culture, and we researched and found this speech. All of these words resonate with those of us who work in compliance. Of course, Sony's present is important, and we must move forward into the future, but I would like to bring attention to how Sony's culture, which is full of positive energy, has been carried forward from the past through our Code of Conduct."

Revision as a starting point

One of the responsibilities of the Ethics & Trust Department is to prevent corporate fraud within Sony Group. Having spent her career in the legal and compliance field and having been exposed to many cases both internally and externally, Hattori is determined to help prevent fraud.

"It is possible that something done by someone somewhere in the Group could seriously damage the Sony brand as a whole. I would never want that to happen. However, I think it does not match with our culture to be too restrictive and tell people ‘don't do this' or `don't do that.' As stated in Sony's Purpose & Values, we are a company that thrives on positive power and creativity, so I believe that delivering the values that Sony has cherished, such as trust in the brand and ethics, through a Code of Conduct along with that positive energy is more likely to inspire good employee behavior."

Hattori also emphasizes that the starting point is now, after the revisions have been completed.

"I believe that people reading the Code of Conduct and thinking about its contents will spark new discussions and make employees more familiar with the importance of trust in brands and ethics. We encourage all employees to read the Code of Conduct and use it as an opportunity to reflect on what they should do. We also hope that people outside the company will see that our actions are based on these values, that we value your trust, and that we care about building long-term relationships."

Yoko Hattori

General Manager, Ethics & Policy Section, Ethics & Trust Department, Sony Group Corporation
In 2001, Hattori joined the then Sony Corporation (now Sony Group Corporation), where she was engaged in corporate-related legal work, such as the establishment of companies with committees and corporate disclosure, and transitioned to working on product technology standards alliances, transaction agreements, joint venture and M&A support, and other general legal work related to business.
Since 2019, she has been a member of the department that handles compliance-related work (now the Ethics and Trust Department). She is also the Global Strategy Leader for the Global Ethics & Compliance Network.