We want to increase the number of 'Good Companies' across Japan where both employees and customers can be happy.

We are participating in April Dream, an initiative to share dreams on April 1st. This press release is a dream of the 'Furuta-do Accounting Group'.

The Furuta-do Accounting Group aims to increase the number of 'good companies' that last for a long time by valuing everyone involved with the company, including employees, their families, customers, and business partners.

We aim for a society where the idea that a company is not just a place to make profits, but an entity that continues to exist for a long time while making everyone involved happy, becomes more widespread.

■What is 'Management that Values People' that we want to spread?

The Furuta-do Accounting Group's management policy is to 'aim to be a company that values people, and create a company where employees can live happily for a lifetime'.

What we consider 'Management that Values People' is not simply about being a kind organization.

If we compare management to a bicycle, the driving force that moves the company forward (the rear wheel) is 'Employee Satisfaction (ES)' itself. The president's greatest role is to grasp the handlebars and look towards the future, while also sincerely valuing each and every employee, the rear wheel, and realizing their happiness.

Employees who feel happy take ownership as professionals and accumulate 'thorough execution of the ordinary'. This energy powerfully drives the front wheel, 'Customer Satisfaction (CS)', creating rewards and pride in the form of 'thank yous' from customers.

The profits earned here do not belong solely to the company or shareholders. We define profit as 'the cost to protect employees and their families.' It is a reserve to protect employment from unforeseen circumstances and should be returned to employees as opportunities for further improvement in benefits and growth.

Continuously turning this 'virtuous cycle of happiness' together is the management approach we aim for.

We believe that this 'valuing people' approach should not be an ideal limited to only a few companies. Our mission is to 'energize small and medium-sized enterprises across Japan.' By spreading and sharing this management philosophy, gained through our own practices, to more SMEs, we are convinced that it is the path to continuously create irreplaceable value for employees, customers, and society.

■Past initiatives of the Furuta-do Accounting Group in 'Management that Values People'

The Furuta-do Accounting Group has not only kept this approach to 'Management that Values People' within our own company but has also strongly supported our client companies in implementing it into their actual management.

As a concrete means to achieve this, we utilize our flagship products: the 'Furuta-do Style Monthly Financial Statements' and the 'Management Plan Document that Values People'.

Specifically, through initiatives such as:

• Realizing the management philosophy: Sharing the president's vision with all employees and aligning the organization's direction.

• Solving management issues through numbers: Defining profit as 'the cost to protect employees' and fostering a correct sense of profitability.

• Involving employees and realizing 'Management that Values People': Cultivating a sense of ownership and creating a system of company-wide management.

we have rooted abstract philosophies into daily management practices.

As a result of this continuous support, our client companies have produced award winners for 16 consecutive years since the first year of the 'Company We Most Want to Cherish in Japan' Award.

What is the 'Company We Most Want to Cherish in Japan' Award?

This award does not simply honor 'companies with good performance.' Based on the belief that 'correct management is about making people happy,' it recognizes companies that aim for sustainable development by valuing people, rather than pursuing profits or scale. The judging criteria are very strict, examining whether the following five groups of people are made happy, in this order:

1. Employees and their families

2. Employees of subcontractors and suppliers

3. Customers (current and future)

4. Local communities (including people with disabilities, the elderly, etc.)

5. Shareholders

The idea that 'because we make our employees happy first, we can please our customers and contribute to society' is exactly our management philosophy of 'the rear wheel (employee satisfaction) drives the front wheel (customer satisfaction)'.

※For details, please refer to our blog. https://www.kodato.com/blog/p19131

We believe this fact is the best proof that the management approach we advocate is not an ideal theory only applicable to a select few special companies, but can be realized with replicability by any small or medium-sized enterprise through the right system and practice.

■Examples of 'Management that Values People' implemented by supported companies

In these award-winning companies, the philosophy of 'valuing people' is not just a slogan. It is concretely incorporated into daily internal systems and management plans, permeating down to the frontline employees. As a result, it not only improves the working environment for employees but also leads to practical outcomes such as employees' voluntary actions, high productivity, and an overwhelmingly low turnover rate.

■Future Initiatives

The Furuta-do Accounting Group will continue to strive to increase the number of companies that can translate their philosophy into actual management practices, rather than letting it remain mere 'nice words'.

Many companies recognize the importance of philosophy-driven management, but often find it difficult to sustain because they cannot reflect it in daily management indicators such as recruitment, evaluation, education, and finance. That is why we, as professionals in practical management, will go a step further to support them by addressing fundamental questions such as:

• 'How can we resonate with employees' hearts and foster a sense of ownership?'

• 'How can we embed the 'virtuous cycle of happiness' as a company system?'

• 'How can we continue to generate profits to protect employees and become a company that lasts for a long time?'

Our challenge is not to support only a select few special companies.

We will continue to spread companies nationwide that value the fundamental principle of 'Who is this management intended to make happy?', rather than pursuing superficial profits.

We will dedicate ourselves to creating a society where 'Management that Values People' becomes the standard, and where SMEs across Japan become even better. We will do our utmost to contribute to such a society.