201

Term paper of creativity & innovation

Topic : SONY

By narendra Prasad
Sec 17B1A14
Regn no 3020070193
 Sony Corporation
ソニー株式会社

Sony’s History -- Through The Eyes of the Company’s Leaders

Sony was founded in 1946 by Masaru Ibuka and Akio Morita. The two complemented each other
with a unique blend of product innovation and marketing savvy, and formed a company that
would eventually grow into a more than $60 billion global organization.

In 1950, in post-war Japan, Ibuka and Morita created Sony’s first hardware device, a tape
player/recorder called the G-TYPE recorder. Materials were in such high demand that the first
tapes were made of paper with hand painted magnetic material applied by Sony’s first engineers.

Ibuka was a practical visionary who could foretell what products and technologies could be
applied to everyday life. He inspired in his engineers a spirit of innovation and pushed them to
reach beyond their own expectations. Ibuka also fostered an exciting working atmosphere and an
open-minded corporate culture. In the founding prospectus, he wrote of his wish to build a
company whose employees gained satisfaction and pleasure from their work and his desire to
create a fun, dynamic workplace.

Through Ibuka’s persistence, the magnetic tape recorder evolved from the G-TYPE recorder into
the Model P (for "Portable"), which became the company’s first profitable product.

In 1953, the company earned licensing rights to the transistor from Western Electric. Ibuka urged
his engineers to improve production methods with the goal of creating a consumer product, the
transistor radio. In 1955, the TR-55, Japan’s first transistor radio was launched. And, in 1957,
Sony released the world’s first pocket transistor radio, establishing a market leadership position
for the company.

Akio Morita was a true marketing pioneer who was instrumental in making Sony a household
name all over the world. He was determined to establish the Sony brand. In fact, he turned down
an order of 100,000 radios from Bulova because they wanted the radios to carry Bulova’s name.
Morita responded to Bulova saying, "Fifty years from now, I promise you that our name will be
just as famous as your company name today." His words could not have been more prophetic.
And it was after Morita’s first trip to the United States that he suggested to Ibuka that the
company name be changed from Tokyo Tsushin Kogyo to one that was easily pronounceable and
recognizable. The company name "Sony" was created by combining two words. One is "sonus"
in Latin, which is the root of such words as "sound" and "sonic." The other is "sonny" meaning
little son. The words were used to show that Sony is a very small group of young people who
have the energy and passion toward unlimited creation.

Video innovation was also a priority for Sony engineers. The road towards building a high
quality color television set was quite a struggle, but on October 15, 1967, a new cathode-ray tube
was completed. The new color television was named Trinitron® - derived from the word
"trinity," meaning the union of three, and "tron" from electron tube. Since its introduction in
1968, the Trinitron television has set the standard for picture quality and design.

As a proponent of global localization, Morita familiarized himself with local economies and set
up manufacturing plants all over the world. When Sony constructed a Trinitron® color television
assembly plant in San Diego, California, in 1972, it became the first Japanese-based consumer
electronics manufacturing facility in the United States.

Further, without Morita, the world would never have known the Walkman® personal stereo. His
excitement and faith in the product’s future success was the true driving force behind its
existence.

At first, the Walkman was poorly received by retailers. Eight out of ten Sony dealers were
convinced that a cassette player without a recording mechanism had no real future. However, the
product’s compact size and excellent sound quality attracted consumers and, ultimately, ignited
the personal audio revolution.

Kazuo Iwama was a detail-oriented person, admired for his scientific knowledge and discipline.
He was made president of Sony in 1976, and became thoroughly involved in developing the
"charged coupled device" or CCD which paved the way for the camcorder and digital still
camera. While he was president, Sony launched the Betamax® video cassette recorder. His
tenure ended with his passing away in 1982, but not before the launch of the compact disc player
– another Sony innovation that changed the way people listened to music.
Norio Ohga was responsible for bringing Sony into the modern age and injecting it with a unique
sense of style through product planning, stylish product design and innovative marketing. During
his tenure from 1982 to 1995, Sony was transformed from an electronics company into a total
entertainment company through the establishment of the music, pictures and gaming businesses.

Sony acquired CBS Records in 1988 and Columbia Pictures in 1989, which today form Sony
Music Entertainment (SME) and Sony Pictures Entertainment (SPE) – two of the world’s largest
content producers. SME has produced a string of best-selling albums from artists such as
Michael Jackson, Bruce Springsteen, Mariah Carey, Celine Dion, and Pearl Jam. Blockbuster
films from SPE include Sleepless in Seattle, Jumanji, Air Force One, Men in Black and Stuart
Little.

Through Ohga’s persistence, the Sony PlayStation® game console was launched in Japan in
1994 with only eight titles. (It was launched worldwide in 1995.) Software companies were
initially reluctant to support Sony’s new format because Nintendo and Sega were already firmly
established. However, with PlayStation and, most recently, PlayStation2, Sony has become the
most successful game manufacturer ever.

Nobuyuki Idei, current Chairman and CEO, played a key role in moving Sony into the digital
network era by emphasizing the integration of AV and IT products. He was responsible for
Sony’s image campaign, "Do you dream in Sony?" and helped coin the term "digital dream
kids." The premise of the campaign was to provide shareholders, customers, employees, and
business partners who come into contact with Sony with the opportunities to create and fulfill
their dreams.

Idei is credited with reinventing Sony’s business model for the networked society. By
complementing Sony’s core competencies with partnerships and collaborations from other
companies, Sony is on its way to becoming a Broadband Entertainment Company.

Sony Corporation’s current President and COO Kunitake Ando is in charge of Sony’s global
electronics operation. Previously, he was responsible for Sony’s introduction of the VAIO®
personal computer in 1996, and helped Sony become one of Japan’s leaders in information
technology products.

Sony: The Leader in Product Innovation

The new millennium is here and Sony has plenty to celebrate. The company’s approach – doing
what others don’t – has paid off, in the form of great products that people covet.

Throughout its history, Sony has demonstrated an ability to capture the imagination and enhance
people’s lives. The company has been at the cutting edge of technology for more than 50 years,
positively impacting the way we live. Further, few companies are as well positioned to drive the
digital age into homes and businesses around the world for the next 50 years and beyond.

Sony innovations have become part of mainstream culture, including: the first magnetic tape and
tape recorder in 1950; the transistor radio in 1955; the world’s first all-transistor TV set in 1960;
the world’s first color video cassette recorder in 1971; the Walkman personal stereo in 1979; the
Compact Disc (CD) in 1982; the first 8mm camcorder in 1985; the MiniDisc (MD) player in
1992; the PlayStation game system in 1995; Digital Mavica camera in 1997; Digital Versatile
Disc (DVD) player in 1998; and the Network Walkman digital music player in 1999.

Today, Sony continues to fuel industry growth with the sales of innovative Sony products, as
well as with the company’s convergence strategy. Examples include: VAIO notebooks that raise
the bar in both form and function; digital cameras that capture pictures on a floppy disk, CD-R or
Memory Stick; a handheld device that lets you store and view photos as well as moving photo;
MiniDisc recorders with a digital PC Link to marry high quality digital audio with downloadable
music; DVD/CD multi-disc changers that playback both audio and video; digital network
recorders that pause, rewind and fast-forward "live" television using a hard-disc drive; and Hi-
Scan flat screen TVs that deliver near HDTV picture quality through Digital Reality Creation
(DRC) circuitry.But Sony is not just the market leader in consumer electronics.
Through research and development, the company has made considerable inroads in the areas of
professional broadcasting (with the creation of the Betacam, DVCAM, HDCAM and 24P
formats); mobile communications (with digital phones and the CLIE handheld); PCs (with VAIO
notebook and desktop computers); storage and media (with the invention of the floppy disk, AIT
and DTF drives, and the Memory Stick) and, now, the Internet.

Sony’s future brand success will be determined by how the company meets the challenges of
change. Sony has always led the market in terms of innovation. But in a digital networked world,
products will no longer be developed with just hardware in mind. The convergence of
technologies – consumer electronics, computing and telecommunications – is a reality, with new
competitors forming and consumer mindshare up for grabs.

Broadband Network Era

Sony is a corporation with convergence at its very heart. Driven by an integrated business model,
the company is well positioned to bring new benefits to consumers by combining hardware,
software, content and services.

Sony’s approach is to make it possible for consumers to enjoy various forms of content on both
"home networks," consisting of connected electronic devices, and "mobile networks" that are
accessible through mobile terminals.

Products such as the i.LINK® interface and Memory Stick® digital storage media provide
greater connectivity between digital devices and will help create seamless home and personal
networks.

From a hardware perspective, Sony’s strategy is focused on four gateways to the

networked world:

1) Digital televisions and set-top boxes;

2) VAIO personal computers;

3) Mobile devices, such as the CLIE handheld devices and digital phones; and 4) PlayStation2
game consoles.

The company’s software strategy includes the development of new audio-visual applications
designed to personalize technology. Recent examples include updated Open MG Jukebox music
management software, and digital video editing products, such as PictureGear, MovieShaker and
DVGate.

Sony’s vision is to give consumers easy, ubiquitous access to entertainment and information
anytime, anywhere – no matter whether the content comes from cable, satellite, terrestrial,
packaged media or the Internet.

In the company’s view, the Internet is an "e.Playground" where consumers can collect, share and
manage everything from data and text information, to digital images, movie clips and music. The
result: New ways to enjoy Sony products.

Sony is also giving consumers new reasons to visit the Internet, including the recent launch of
SonyStyle.com, a new information rich, e-commerce site for everything Sony. Designed to build
a closer relationship between Sony and its customers, the site will offer a variety of commerce,
content, community and connectivity options planned for the near future.

Other new service offerings include www.ImageStation.com and www.eMarker.com.

ImageStation.com helps consumers create, share and enjoy digital pictures and video. The
service offers free online albums and eCards, and members can share their favorite pictures as
gifts, keepsakes and high-quality prints in a variety of sizes. Select Sony hardware and
accessories are also available for purchase in the ImageStation.com store.

eMarker.com is an online service that puts an end to the most frustrating part of hearing a song
on the radio -- not knowing the title or the artist’s name. By pressing the button on the tiny
eMarker device, people can "eMark" songs they hear on the radio and locate the information
through the site.
Sony has been at the forefront of the movement to help consumers adopt digital lifestyles, which,
in a broadband network era, means helping them maximize the power and control found within
digital technology.

However, even in this broadband network era, one fact about Sony remains the same: the
company’s fundamental philosophy of providing products that are fun to use.

Sony’s vision is not necessarily about refrigerators talking to toasters. It’s about bringing to
market products that capture the imaginations of consumers and enhance their lives in the
process.

In the future, look for Sony to create entirely new forms of entertainment, blending movies,
computer generated worlds, games and music. Sony has the vision, technology and content to
forge a direction in consumer entertainment that no other company can match.

Promoting a World Class Brand

The phenomenal strength of the Sony brand worldwide is surely a testament to the company’s
reputation for producing innovative products of exceptional quality and value. And while
traditional brand theory says brand essence should be narrowed down to one element, Sony
celebrates brand diversity -- with the Trinitron, VAIO and Walkman sub-brands, to name just a
few, each connecting with consumers across various lifestyle segments.

Sony has the brand recognition and marketing savvy to create new product categories and
revitalize mature ones. Look no further than what the company did with the Walkman brand and
for the MiniDisc format.

Sony, the company that changed the way the world listens to music with the introduction of the
Walkman personal stereo, again set its sights on transforming the portable music landscape when
it kicked off a comprehensive, integrated marketing campaign to relaunch the Walkman brand in
June 2000.

Titled "The Walkman Has Landed," the marketing campaign, which included broadcast, print
and online advertising; Internet and dealer events/promotions; and grassroots consumer and
public relations components; strategically communicated the lifestyle attributes of the Sony
Walkman line to generation Y, its primary target market.

Additionally, the campaign brought together an entirely new product line up comprised of CD
Walkman, MD Walkman and Network Walkman personal digital audio players.

The company knew that it needed to reinvent the Walkman brand for today’s younger, more
digitally inclined music lovers. (To many, the brand had become generic, representing "older,"
analog-based cassette technology.) Sony promoted a new Walkman ideology based on personal
freedom, independence, imagination and creativity in a way that appealed to new techno-savvy,
style-conscious consumers who favor digital downloading and ripping CDs.

The star of the television commercial from the campaign is an alien character named Plato, who
is "quintessentially diverse and knows how to have fun." His persona offers Gen Y a bit of
humor and a good dose of enjoyment.

Another example of Sony’s ability to reposition itself and its products is found in the MiniDisc.
A huge success in Japan, where it has become the dominant recording format, MD did not
become a success in the U.S. until it was marketed as a digital music player that could record
from the Internet. With its inexpensive media and versatility (units are capable of recording
Internet music, tracks from personal CD collections and favorite songs off the radio), MD has
become a gen Y favorite. U.S. sales have increased by more than 40% since the MD to PC link
was introduced.

Brand Value

When remarking about the importance of the Sony brand name, consider this quote from
Chairman of the Board, Norio Ohga: "In April of every year a large number of new employees
join the company. And what I always say to them is that we have many marvelous assets here.
The most valuable asset of all are the four letters, S, O, N, Y. I tell them, make sure the basis of
your actions is increasing the value of these four letters. In other words, when you consider doing
something, you must consider whether your action will increase the value of SONY, or lower its
value."
In the minds of consumers, Sony is one of the world’s greatest brands -- the company was once
again rated the number one brand in the U.S. by the 2000 Harris poll. As noted, much of the
brand equity Sony enjoys is rooted in product innovations.

However, to ensure the future of its brand, the company recently embarked on an extensive,
company-wide initiative in the U.S. designed to foster a common understanding of the Sony
brand among employees, customers and consumers. The project, dubbed Being Sony, was
necessitated because of expansive company growth, an influx of new employees, and converging
business opportunities.

Sony executives felt the need to clearly articulate the meaning and values inherent in the Sony
brand (to both internal and external constituencies), while re-examining the unique relationship
of the brand in American culture.

Despite involvement in disparate businesses, the company’s desire is to leverage the brand
beyond the products -- the primary touchpoint with consumers, and add to the brand’s value by
re-focusing it to the outside world.

In essence, Sony, the box manufacturer, is being replaced by a new Sony – a customer-centric
entity centered around broadband entertainment, yet driven by the venture spirit of Sony’s
founding days.

They Help Dreamers Dream

Sony is a company devoted to the CELEBRATION of life. We create things for every kind of
IMAGINATION. Products that stimulate the SENSES and refresh the spirit. Ideas that always
surprise and never disappoint. INNOVATIONS that are easy to love, and EFFORTLESS to use,
things that are not essential, yet hard to live without.

We are not here to be logical. Or predictable. We’re here to pursue INFINITE possibilities. We
allow the BRIGHTEST minds to interact freely, so the UNEXPECTED can emerge. We invite
new THINKING so even more fantastic ideas can evolve. CREATIVITY is our essence. We take
chances. We EXCEED expectations. We help dreamers DREAM.
Things You Didn’t Know About Sony

• Sony’s first product was a rice cooker

• Sony establishes its first major overseas operation in New York City (514 Broadway) in
1960 with a capital investment of $500,000
• Sony becomes the first Japanese company in the United States to make a public offering
of 2 million shares of common stock in the form of American Depository Receipts
(ADRs) in 1961.
• In 1986, Walkman was included in the Oxford English Dictionary
• Before the Walkman personal stereo became a worldwide brand name, it was introduced
under a variety of names, including the Soundabout in the U.S., the Stowaway in the UK
and the Freestyle in Australia.

Innovation begin in history

Smaller and Smaller

 The engineers of the 2nd Development Division had little
breathing room before facing their next challenge. Their
insatiable pursuit of dreams continued. When Betamax had
first appeared on the market, Ibuka gave employees a new
challenge. "Develop something new, so Betamax will seem
like something from the past," he had said. This was in 1977,
and the development of a next-generation format proceeded
at a brisk pace. In the race to surpass both U-matic and
Betamax, the fast and furious focus was on technology that enabled smaller and denser
recording.

Under Kihara, the race to develop the technology fell principally on Minoru Morio, who had
been transferred from the Television Business Department. Morio and other members of the
development team were amateurs as far as VCR technology was concerned. However, their
strength was their ability to not be affected by past experiences. Kihara wanted Morio to create a
VCR half the size of the Betamax in all aspects. This meant the development of a machine one-
eighth the volume of the Betamax. To this, Ibuka asked, "If Sony will develop a new VCR
format, then why not aim for a ten-fold increase in recording density?" Just as he had done
during the development of the Betamax, Ibuka simplified the target in order to make it
achievable.

The next generation videocassette should be smaller than the Sony Diary. Morio's team was
given the target of creating a videocassette tape approximately the same size as an audio cassette
tape--something that would be easy to carry. In early 1979, Sony began working earnestly to
achieve this goal, establishing the Project 80 Team and giving it the task of developing a next
generation VCR for the 1980s.

In January 1980, Iwama submitted a proposal for a new product--a single unit video camera
recorder employing a new type of semiconductor called the CCD (Charge Coupled Device).
Since the early 1970s, Sony's main research center had been conducting research on this type of
semiconductor. By incorporating a CCD, it was possible to develop a video camera more
compact in size than could be achieved with a traditional image pickup tube design. As a result,
the CCD was being considered as a replacement for the pickup tube, in other words as a new
"eye" for the video camera .
In January 1980, the first color video camera employing a CCD was developed for use in
commercial aircraft. Sony's engineers desperately wanted to incorporate the CCD in the 8mm
VCR. The next four months would involve many sleepless nights and missed meals as the
Project 80 Team worked tirelessly to achieve this goal.

After four months of feverish activity, Sony announced the "Video Movie," a single unit camera
and recorder. In July 1980, press conferences were held simultaneously in New York and Tokyo,
with Morita and Iwama attending the respective events. The new system comprised of a color
video camera employing a CCD and an 8mm wide tape weighing approximately two kilograms.
Additionally, the videocassette tape was approximately the size of a matchbox and had a
recording time of 20 minutes. Previously, the term "portable video system" referred to a 10
kilogram Betamax VCR connected to a video camera via cable. The giant leap in technology
represented by the new single unit system was obvious.

There was an additional reason for holding the press conferences, and that was to call for the
establishment of a common VCR format and request that manufacturers cooperate in developing
a universal industry standard. In reality, the "Video Movie" was still a "concept product." Sony
had decided to wait five years before launching it publically. During that time, Sony would
develop and promote this new system with other manufacturers in order to avoid the Beta versus
VHS battle. Forging ahead with a product that could be incompatible with others did not meet
the needs of the expanding and growing market. With the lesson learned from the Beta/VHS
episode still fresh in their minds, Morita and the Sony employees all worked to develop common
standards.

In September 1980, Hitachi released a single unit camera recorder that was followed by a
product from Matsushita in February 1981. Sony, with Hitachi, Matsushita, JVC, and Philips
formed a committee to draft standards for the 8mm VCR. By March 1982, this committee had
evolved into a group of 122 companies (which later increased to 127), known as the 8mm Video
Conference. Progress on finalizing standards was slow but steady. Sony bided time, preparing to
commence production once an agreement was reached.

The Beginning of the Digital Age

"Can the VTR be digitized?" This was the question of many video engineers in 1976. At the
time, the demand of commercial film producers was for a VTR that did not lose image quality
when subjected to numerous dubbings. Digital images theoretically do not lose any quality
regardless of the number of dubbings made. Digitized images would require a far wider
frequency band than digitized sound, which was about to be realized by Sony. Most people did
not think this was feasible. Under these circumstances, Yoshitaka Hashimoto and his group
began fundamental research of digital VTRs in March 1977 at the Research Center in
Yokohama.

The actual project was launched in March 1978, a year after Hashimoto's team started their
research with Morizono's blessing. Steele who was leading SBC into a successful business
expansion in Europe motivated Morizono. He persuaded Morizono by insisting that the future
was in digital broadcasting. Takeo Eguchi, who had studied digital VTR technology at the
Massachusetts Institute of Technology (MIT) returned to Japan and joined the development
team. The project evolved into a major effort with R&D facilities in both Europe and the United
Sates also assisting. Everyone involved spent days and nights thinking only of digital
technology. The Japan based engineers went to the Sendai plant and had the engineers upgrade
the quality of tapes and recording heads, preaching to them about the coming digital age. In just
a year and a half, a digital image was played back on a VTR.

At NAB in 1979, Ampex, Sony and Bosch G.m.b.H. independently introduced the fruits of their
digital research, opening the door to serve competition for digital VTRs. Eventually, in
consideration of the benefits to users as well as to manufacturers, a movement to establish a
universal standard emerged. There are three major broadcasting systems in the world: NTSC for
Japan and the United States, PAL for most of Europe and SECAM for countries in the Middle
East. The standardization effort was an attempt to cover all three systems.

Once an international standard was established, product development proceeded. In 1987, Sony
introduced the world's first component digital VTR, the DVR-1000 (D-1), and in 1988, a
composite digital VTR, the DVR-10 (D-2) was introduced. The D-1, capable of individually
recording luminance and color difference signals, had a very high resolution and was endorsed
by broadcast stations and video production houses alike. The D-2, which records an integrated
signal, was widely used as the digital VTR for production and transmission at stations, replacing
the conventional composite analog one-inch VTR.

Compliance
Ethical business conduct and compliance with applicable laws and regulations are fundamental
aspects of Sony's corporate culture. To this end, Sony has established a Global Compliance
Network comprised of the Compliance Division at the corporate headquarters and regional
offices around the world, adopted and implemented the Sony Group Code of Conduct, and set up
Compliance Hotline systems through its Global Compliance Network -- all in order to reinforce
the Company's worldwide commitment to integrity and help assure resources are available for
employees to raise concerns or seek guidance about legal and ethical matters.

• Strengthening the Compliance System

• Sony Group Code of Conduct
• Internal Hotline System
• Educating Employees about the Sony Group Code of Conduct and the Internal Hotline
System
• Compliance Monitoring Program (Implementing Compliance Self-Assessments)
• Crisis Management System
• Basic Approach and Systems to Exclude Anti-Social Forces
• Information Security and Personal Information Management

Sony offers the best, innovative and reliable products to its customers. The Sony DDS-4
DGD150P cartridge is small in size but it can hold large volumes of data up to 20GB. The main
reason that the Sony DDS 4 tape has high storage density is that the new "Helical Scan
Technology" is introduced in the DDS-4 tape cartridge. The "Helical Scan Technology" is used
in the Video applications. The Sony DDS-4 tapes are durable and reliable, they have the feature
of "HCL High Cross Linkage". With the help of this binder, the Sony tape can handle the stress
and pressure after repeated use. The Sony tape has the feature of "RDP". With the help of
"RDP", the winding of the tape is done smoothly because the tape reel covered from top and
bottom with textured sheets. The Sony tape cartridge is resistant to mechanical shocks, because
strong plastic is used to manufacture the lid of the tape cartridge. The torque of the Sony tape is
also very low.
Sony’s Basic Philosophy of Supply Chain Management

Sony manufactures its products in various areas of the world to meet expectations of
customers all over the world. Its policy is to procure parts and materials for Sony products
with "high quality, competitive prices, and a stable supply" from numerous suppliers
worldwide. To achieve this Sony has the following policies.

Basic Approach to Corporate Social Responsibility (CSR) in Procurement:

Sony's procurement policy stresses "fair business practice, transparency and equal opportunity"

based on mutual trust and collaboration between Sony and its suppliers.

 Fair business practices" means conducting procurement activities in accordance with

prescribed policies and procedures.
 "Transparency" means avoiding any arbitrary actions.
 "Equal opportunity" means providing all suppliers with a level playing field.
 Sony also emphasizes collaborative relationship with suppliers in such areas as
strengthening technological competence, assuring and improving the quality of parts and
maintaining competitive prices.

 To preserve the global environment and realize a sustainable society, Sony strives for
environmental management together with suppliers by observing "Sony Group
Environmental Vision."

 To fulfill its social responsibilities in compliance with laws, regulations and social
standards, Sony abides by "Sony Supplier Code of Conduct" in collaboration with
suppliers.

Basic Policy for Selecting Suppliers

Suppliers are required to have the following fundamentals to become a partner of Sony.
 • A sound financial base
• Be compliant with laws, regulations and social standards
• An operational environmental management program
• Advanced technology needed to contribute to Sony products

In addition, Sony selects suppliers of the highest standard with the perspective of "stable and
optimal eQCDS+E+T" (explained below). Crucially, companies must also demonstrate
management policies and activities designed to realize future competitiveness, not just evidence
of a past or current competitive edge. Based on these standard criteria, a decision will be made
globally as the Sony Group.
What does "eQCDS+E+T" stand for?

 "e": e-commerce ready

 "Q": ability to continuously supply items that consistently meet quality standards

 "C": ability to supply items that are cost competitive

 "D": ability to deliver items on time and in the required quantities

 "S": ability to meet expectations for providing a broad range of services

 "E": Initiatives to reduce the environmental impact of items supplied to protect the global
environment

 "T": Superior device technology that contributes to creating stronger products

Compliance with "Sony Group Code of Conduct" in Business

In May 2003, Sony adopted the "Sony Group Code of Conduct," which sets forth the basic
internal standards to be observed by all directors, officers and employees of the Sony Group in
order to emphasize and further strengthen corporate governance, business ethics and compliance
systems throughout the Sony Group. The code includes basic policies concerning deals with
suppliers such as "Fair Procurement" and "Gifts and Entertainment," with which all personnel in
the Sony Group are required to comply.
*3 The Americas Office is responsible for Sony Corporation of America, the Sony Pictures
Entertainment Group, and the Sony Music Entertainment Group, in addition to the Electronics
Group companies in the America's Region. The Sony Europe, East Asia and Pan-Asia Offices
are responsible for the Electronics Group companies in their respective regions. The Japan Office
is responsible for Sony Corporation, the Sony Computer Entertainment Group, and Sony
Financial Holdings, in addition to the Electronics Group Companies in Japan.

Sony Group Code of Conduct

In May 2003, Sony adopted the Sony Group Code of Conduct, which sets the basic internal
standards to be observed by all directors, officers and employees of the Sony Group in order to
emphasize and further strengthen corporate governance, business ethics and compliance systems
throughout the Sony Group. This Code of Conduct sets out, in addition to legal and compliance
standards, the Sony Group's basic policies concerning ethical business practices and activities on
such topics as respect for human rights, safety of products and services, environmental
conservation and information disclosure. It has been adopted and implemented by each Sony
Group company globally as its own internal code of conduct and is the subject of frequent "tone
from the top" messaging and other training. To date, the document has been translated into 26
languages.

The Sony Group Code of Conduct reflects principles set out in the Organisation for Economic
Co-operation and Development (OECD) Guidelines for Multinational Enterprises, the United
Nations Global Compact and the United Nations Universal Declaration of Human Rights. Sony
also participated in the formulation of and observes the standards outlined in the Charter of
Corporate Behavior of the Nippon Keidanren (Japan Business Federation), an alliance of Japan's
leading corporations.

Sony Group Code of Conduct

OECD Guidelines for Multinational Enterprises
United Nations Global Compact
United Nations Universal Declaration of Human Rights
Nippon Keidanren Charter of Corporate Behavior

Internal Hotline System

With the adoption of the Sony Group Code of Conduct, Sony also established the Sony Group
Compliance Hotline system as a resource for employees to report concerns or seek guidance
about possible violations of laws or internal policies, and to allow the Sony Group to respond
swiftly to potential risks of such possible violations. The Sony Group Compliance Hotline
system is available worldwide. Callers who report issues in good faith will be protected from any
possibility of retaliation.

The Sony Group Compliance Hotline system is directly linked to the Corporate Executive
Officer in charge of Compliance and is operated independently from the ordinary line of
command. Summaries of hotline calls, results of investigations, and updates on the operation of
the system are reported to senior management and the Audit Committee.
During fiscal 2009, the Sony Group received approximately 300 hotline contacts covering issues
primarily relating to employment, labor, work environment, information management and
possible conflicts of interest. All contacts received are investigated for the purpose of verification
and appropriate action. In certain cases, these contacts have led to a review of internal
procedures and the strengthening or enforcement of internal rules.

Educating Employees about the Sony Group Code of Conduct and the Internal Hotline
System

To ensure that all employees understand the importance of the Sony Group Code of Conduct, as
well as to promote use of the internal hotline system, Sony Group senior management informs
executives and employees about these topics through ongoing dissemination of e-mails, as well
as implementation of online and class room training. Further, Sony Group executives and senior
management with a certain level of authority are annually requested to submit a certification
stating that they understand the importance of ethical behavior and the need, in their role as
managers, to communicate the importance of ethics and compliance with applicable laws,
regulations and internal policies. Sony Group companies inform their employees about the Code
and the internal hotline system on an ongoing basis through the dissemination of e-mails,
booklets, wallet cards, posters, feature articles in internal newsletters, and/or postings on the
company's intranets

In addition to these initiatives, the Sony Group provides education and training sessions that use
e-learning and other approaches presenting real-life examples to impart more in-depth expertise
regarding business ethics and individual aspects of the Sony Group Code of Conduct that are
crucial to compliance by the Sony Group. These include fairness in competition and business
dealings, and the prevention of discrimination and harassment in the workplace. Through
ongoing communication, awareness and training efforts, Sony will continue to promote a
thorough Group-wide understanding of the importance of the policies and values set forth in the
Sony Group Code of Conduct.

Compliance Monitoring Program (Implementing Compliance Self-Assessments)

A compliance monitoring program helps to assure thorough global adherence to the Company's
Code of Conduct and internal policies. The framework for monitoring the compliance program
consists of reports received through the internal hotline system and from Regional Compliance
Officers, periodic self-assessments by key Sony Group Companies, and compliance and internal
audits. Key Sony Group companies worldwide periodically undertake compliance self-
assessments, which involve self-inspection of enumerated compliance-related activities and
detailed reporting. The Regional Compliance Officers evaluate the results of the self-assessments
and report the results to the Corporate Executive Officer in charge of Compliance. The Regional
Compliance Officers also identify measures to address any reported issues and provide relevant
instruction and supervision to Sony Group companies in their respective regions.

Crisis Management System

One aspect of risk management is the proper handing of crises if and when they arise, and the
proper preparation for such crises. Sony's crisis management and business continuity activities
predominately occur at the business and operational level closest to the events the Company may
encounter. Since some events can have a significant impact on the entire Sony Group as a whole,
Sony has established a Group crisis management procedure to enable a swift and organized
Group-wide response to crises as needed. Under this system, crises are evaluated and classified
into three levels to ensure dynamic and appropriate responses. Level 1 is defined as a crisis with
the possibility of significant impact on the Sony Group, and the possibility of serious negative
impact on the business of the Sony Group or its reputation, and will be handled under the
direction of the CEO. Level 2 is a crisis that is determined not to be Level 1, but still has the
possibility of widespread impact within the Sony Group, and will be addressed by a cross-
functional committee composed of headquarters executives relevant to the issue. Level 3 is a
crisis that the Corporate Executive Officer in charge of the subject area determines may be
resolved within his/her authority.

Basic Approach and Systems to Exclude Anti-Social Forces

Sony strives to comply with all applicable laws, regulations and internal policies and to conduct
its business activities in an honest and ethical manner. As a part of this effort, Sony personnel
strongly oppose anti-social forces (i.e., organized crime) that threaten to disrupt the order and
safety of our community and endeavor to prevent or eliminate any relationship with anti-social
forces.

Sony's frequent messaging and ongoing training of all its personnel on the Sony Group Code of
Conduct help ensure that its corporate ethics are understood and observed throughout the Sony
Group. In addition, Sony maintains strict anti-money laundering policies, supplemented by anti-
money laundering "Know Your Customer" procedures and training. These policies and
measures, along with Sony's internal hotline system to encourage its personnel to report concerns
or raise questions about possible violations of laws, regulations and internal policies, should help
prevent or eliminate relationships with anti-social forces.

Information Security and Personal Information Management

Sony has established the Sony Global Information Security Policy and its related subordinate
rules, the Sony Global Information Security Standard, which set forth Sony's commitment to
information security and define policies to be followed by all Sony personnel. Sony has
established an organization charged with developing, maintaining and implementing this policy.
This organization coordinates with individuals responsible for information security at Sony
Group companies globally to create an effective Group-wide information security management
system. Sony formulated the Global Basic Principles on Personal Information in July 2000, and
is reinforcing internal rules and business processes to ensure the appropriate handling of the
personal information of its customers and business partners. To encourage broad understanding
of its principles on personal information management, in April 2005 Sony also introduced the
Sony Group Privacy Policy*4 at all Sony Group companies in Japan. Recognizing that employee
awareness of both information security and personal information management is vital, Sony
Corporation requires training programs for its employees to increase their understanding and
improve the overall level of information security and personal information management.

Corporate Governance

Sony is committed to strong corporate governance. As a part of this effort, in 2003, Sony
adopted the "Company with Committees" corporate governance system under the Companies
Act of Japan. In addition to complying with the requirements of applicable governance laws and
regulations, Sony has introduced its own requirements to help improve the soundness and
transparency of its governance by strengthening the separation of the Directors' function from
that of management and advancing the proper functioning of the statutory committees. Under
Sony's system, the Board of Directors defines the respective areas for which each of the
Corporate Executive Officers is responsible and delegates to them decision-making authority to
manage the business, thereby promoting the prompt and efficient management of the Sony
Group.

Governance Structure
Sony Initiatives

To strengthen its governance structure beyond legal requirements, Sony Corporation includes
several provisions in its Charter of the Board of Directors to ensure the separation of the Board
of Directors from the execution of business, and to advance the proper functioning of the
statutory committees. The main provisions are as follows:

 separating the roles of the Board chairperson/vice chairperson and Representative Corporate
Executive Officers;
 limiting the number of terms of outside Directors;
 appointing chairs of statutory committees from the ranks of outside Directors;
 setting forth qualifications for Directors for the purpose of eliminating conflicts of interest
and ensuring independence;
 raising the minimum number of Nominating Committee members (five or more) and
requiring that at least two Directors of the Committee be Corporate Executive Officers;
 suggesting that, as a general rule, at least one Director of the Compensation Committee be a
Corporate Executive Officer
 prohibiting the appointment of the CEO or COO of the Sony Group (or persons in any
equivalent position) to serve on the Compensation Committee; and
 discouraging the concurrent appointment of Audit Committee members to other committees.

CSR Enlightenment

Sony is engaged in a variety of efforts in line with its belief that a solid in-house organization
and a high level of employee awareness is essential to ensuring the effective coordination of its
CSR initiatives.

Encouraging Awareness

Recognizing the importance of raising employee consciousness with regard to the effective
promotion of CSR, Sony offers a variety of educational programs based on a three-level
approach, whereby employees are encouraged first to learn about CSR, second to participate in
CSR activities and third to incorporate CSR into their day-to-day work.

Sony provides employees with essential training to facilitate the sharing of information,
disseminates pertinent news and stages the CSR Forum, featuring lectures by invited experts,
film showings and other activities designed to enhance awareness of each individual's obligations
to society.

Sony's social contribution projects offer a uniquely Sony approach, that is, an employee
volunteer-driven organization that contributes to society while at the same time encouraging
employee involvement.
CSR Training and Information Distribution

CSR training for new employees focuses on instilling know-how and introducing Sony's CSR
program. Sony also offers instructor-led training sessions aimed at management. To enhance the
expertise of both employees and management, Sony publishes the CSR Update. In addition to
detailing Sony's CSR activities, this monthly newsletter reports on CSR-related awards and
recognition received from outside agencies and on CSR-related trends.

Employee Participation

Sony believes that employee participation is crucial to ensuring its social contribution activities
are truly meaningful. Accordingly, Sony encourages employees to be aware of social issues,
strive constantly to deepen their understanding and then to participate in fundraising initiatives,
community projects and/or other activities. Employees with a particular expertise or
specialization are encouraged, for example, to lead workshops for local students and children,
underscoring Sony's desire to promote multi-level engagement.

 Volunteer Systems for Employees

 Fund-raising initiatives
 Matching gift programs
 Fund-raising initiatives
 Donations in kind

Design

Sony pursues a variety of design-based initiatives that help solve problems faced by society
and take user diversity into consideration.
"odo": The Concept behind Sustainable Design

"odo" is a design concept model group of devices, powered by kinetic energy, which Sony
proposed and developed. The devices provide children with new experiences, a sense
of social consciousness, ecological values and inspiration. In return, children offer
their creativity, curiosity and energy to "odo," which enhances its value even more.
They are an invitation to enjoy a new level of interaction with devices, by having fun
moving parts, turning cranks and using the body to generate energy while playing.
At the Eco-Products 2008 exhibition, held in December 2008, the Sony booth
featured new "odo" devices and a workshop where children could try these new
devices out.

Sustainable Packaging

Packaging policies have been a key facet of Sony's environmental initiatives for some time.
Keeping the consumer's perspective firmly in mind, designers are expanding efforts
to create sustainable packaging by considering, among others, how packaging be
made more conducive to appropriate management after use and how it can make
unboxing a new Sony product an exciting and satisfying experience.

A sustainable package redesign project resulted in the development of a brand-new slim

carton for the VAIO™ NW series, launched in fiscal year 2009. The designers in
charge began by verifying the relationship between packaging and customers and,
after reviewing the results of this process, resolved to employ environmentally-
conscious materials, as well as to minimize the size of and volume of materials used in
the carton, making it easy to open and possible for customers to recycle immediately
after opening.
Green Procurement

Sony sees global environmental conservation as one of the most critical issues for
humankind in the 21st century. Sony, as a good corporate citizen, works
aggressively to conserve the environment and create a sustainable society.

Challenges faced by sony during their innovations:

Achieving Highly Advanced Picture Quality Meant Mastering the Toughest

Method
The development of OLED was a series of challenges and discoveries. When problems
emerged, there were no precedents, and everything depended on the efforts of the development
team. Ultimately, the beauty and advanced potential of OLED was what led me to strive for
commercialization of this technology.

Polylactic Acid---Weak, Fragile, Difficult to Mold

Sony has been a pioneer in the development of plastics made from vegetable-based materials and
has led the electronics industry in the use of vegetable-based plastics to manufacture product
cases. How were these vegetable-based plastics developed? We asked one of the engineers
involved to talk about the background of these materials and the challenges encountered on the
path to their development.

New Walkman launched by Sony in 2002 was the world's first product with a casing made from
vegetable-based plastics. The most difficult aspect of our work on this product was not the
development of the vegetable-based plastic, but the process leading up to its use in actual
products. Because these materials had never been used before, our product developers had many
doubts and concerns.

Low Power Consumption the First Development Goal

The development of fundamental technologies supporting FeliCa began in 1988 after a major
logistics firm approached Sony to develop an IC card system that would make the automatic
sorting of packages a reality. Initially the developers decided to create a system that would use
wireless technology to transmit unique IDs assigned to each package. The sorting system would
read these IDs and sort packages by destination. he adoption of the FET approach in analog
circuitry was a major step forward to the practical implementation of the FeliCa concept.

A Design Philosophy as the Starting Point for Development

In addition to its vast processing power, the Cell Broadband Engine™ used in PLAYSTATION
3 also embodies an ambitious vision of a chip that can be used in a wide range of other fields. It
resulted from a collaborative development project based in Texas. The project involved Sony,
Sony Computer Entertainment, IBM and Toshiba, with talented engineers from each of these
four companies working around the clock to develop the new chip. We asked one of the lead
engineers on the Cell development team to share his recollections about the project.

A Key Component Device in Optical Disc Systems

Blue-violet semiconductor lasers are used to read digital signals from Blu-ray discs, and the
commercial development of Blu-ray products would not have been possible without this core
component device. Thanks to determined efforts by its engineers, Sony was able to complete
development of the laser within a very tight schedule in time to start the mass-production of
millions of PLAYSTATION 3 consoles, the first product to incorporate Blu-ray technology.

A Difficult Decision
Initially Sony tried to develop a semiconductor laser using materials based on zinc selenide, and
in 1996 we succeeded in maintaining continuous oscillation for 100 hours. However, Sony
changed its development strategy after Nichia Corporation succeeded in developing a gallium
nitride semiconductor laser with a shorter wavelength. It was a difficult decision to abandon
development of the materials that we had previously been researching. However, we wanted
Sony to maintain its leading role in the advancement of optical disc technology, and we saw this
as the best decision in terms of ensuring that Sony would be the first to develop next-generation
products based on BD technology.

Short-circuiting Caused by Sub-Micron Particles

Equipped with the 35mm full-size CMOS sensor providing 24.6 effective megapixels, the α900
is Sony's flagship model for its α Series digital single lens reflex (DSLR) cameras. This camera
was developed to meet the demands of photographers who want to take pictures with the same
focal length and angle of field as can be achieved with 35mm film cameras. The CMOS sensor
built into the α900 gives this camera the ability to capture subjects in minute detail. The imaging
element has approximately 2.35 times the area of an APS-C size CMOS sensor, empowering
photographers to create images with enhanced definition. The creators of this enlarged cutting-
edge sensor had to overcome many challenges on the road to its development. We asked one of
the engineers who worked on the sensor about the difficulties involved.

Mercury as a Panacea

In 2004, Sony succeeded in developing a mercury-free silver oxide button battery, a task that
other manufacturers had dismissed as impossible. Five years later in 2009, Sony also announced
the development of a mercury-free alkaline button battery. We asked Masatsugu Shiota---a Sony
engineer involved in these initiatives---to talk about his experiences in developing these
batteries.

Innovation for sustainability:

Marketing:
With the aim of using its business activities to increase public awareness of efforts to resolve
social problems, and of encouraging its customers to participate in such activities, Sony
participates in cause-related marketing, a type of marketing that allows it to support the efforts of
NPOs through marketing efforts for its products and services.

"Solar-bear": An Example of Cause-Related Marketing

The companies of the Sony Group support the efforts of the Solar Bear Fund, a Japanese NPO
established to promote the prevention of global warming and environmental education for
children, by making use of a wide range of techniques linked to their sales and business
activities.
In March 2008, Sony launched a campaign whereby it displays "Solar Bear" characters on
packaging for its retail batteries, rechargeable batteries and battery chargers. Sony donates a
portion of the revenue generated from the sale of these products to the Solar Bear Fund, which
uses the proceeds to install solar power generation units at kindergartens and nursery schools. In
addition to providing direct support to the Solar Bear Fund, this ongoing initiative enables Sony
to capitalize on the visibility of Solar Bear characters in retail settings to encourage consumer
understanding of environmental issues.

In 2009, Sony Assurance Inc. initiated a program in collaboration with the Solar Bear Fund
aimed at installing solar power generation equipment at kindergartens and nursery schools. The
program capitalizes on the method Sony Assurance uses to calculate automobile insurance
premiums, which is based on estimated distance driven in a year, when policies are renewed.
Policyholders whose actual distance driven is below the distance initially estimated are
considered to have contributed to environmental conservation. For each 100 kilometers the
actual result is below the estimate, Sony Assurance donates 1 Yen to the Solar Bear Fund, which
uses this money to install solar power generation equipment at kindergartens.

Carbon-Offset Investment Trust

In an initiative aimed at mitigating greenhouse gas emissions, Sony Bank Inc. donates to the
Japanese government greenhouse gas emissions rights it has purchased on behalf of customers
whose holdings in funds that make up its carbon-offset investment trust exceed a specified
amount. This system enables customers to participate in an environmental preservation activity
while Sony Bank manages their investments. In fiscal year 2009, the Bank purchased 2,200 tons
of emissions rights for investments in three eligible funds.

Some recent innovations at Sony

"3D world Created by Sony" 3D Experience Pavilion Opens in South Africa, Bringing
together Sony's state-of-the-art 3D technologies -

South Africa - Sony Corporation unveiled "3D world Created by Sony" (hereafter "3D world"), a
premium 3D experience pavilion featuring a 280 inch 3D LED screen and 240 seats, at Nelson
Mandela Square (Sandton City) in celebration of the first ever FIFA World Cup™ to be
produced in 3D.
HID Global and Sony to form Alliance to Create Contactless Smart Card
Readers for the Global PC Market
HID Global, trusted leader in solutions for the delivery of secure identity, and Sony Corporation
today announced they have entered into a Memorandum of Intent for a strategic partnership to
jointly develop an embedded contactless smart card reader platform for the global PC
marketplace. The jointly developed platform will be designed specifically for laptop
manufacturers and will encompass Sony and HID Global contactless solutions and a broad range
of other widely deployed technologies while supporting specific regional and application needs.

Industry Leaders Announce Open Platform to Bring Web to TV

Today at the Google I/O developer conference in San Francisco, leading industry players
announced the development of Google TV-an open platform that adds the power of the web to
the television viewing experience, ushering in a new category of devices for the living room.
Intel, Sony, and Logitech, together with Best Buy, DISH Network and Adobe, joined Google
(NASDAQ: GOOG) on stage to announce their support for Google TV.

Newly-developed technology facilitates both internal data transmission and

power supply with a single cable
Sony Corporation ('Sony') has developed 'single wire interface technology', a hybrid transmission
technology which facilitates both data and power transmissions through a single cable. This
technology enables the internal wiring of a mobile device to be streamlined through a single
cable (copper wire). Conventionally, the video, audio and control signals as well as the power
transmission were spread out over several dozen cables within the movable mechanisms of
mobile devices, such as hinges or rotating parts. Sony aims to promptly implement this
technology to improve design flexibility, reliability and durability for mobile devices with
movable mechanisms.
Sony and conservation international to bring never-before-seen 3d wildlife
photography to biodiversity convention
Sony Corporation (Sony) and Conservation International (CI) have teamed up to bring
compelling wildlife photography in 3D to over 14,000 delegates at the United Nations
Convention on Biological Diversity (COP10) taking place over the next two weeks in Nagoya,
Japan. The 3D images can be viewed at the "Sony 3D Kiosk" in the CI booth located at the
Nagoya Congress Center.

Sony and Google Establish Strategic Alliance to Deliver Compelling New

Cloud-based Products and Services with the Android Platform
Sony Corporation and Google Inc. (NASDAQ:GOOG) announced an alliance to provide a
range of new and rich entertainment experiences that combine Google's open-source Android
platform with Sony's expertise in technology and product design. The two companies are
exploring the joint development of compelling new Android-based hardware products for the
home, mobile and personal product categories.

Through this alliance, Sony aims to leverage the stability, future growth potential and open-
source accessibility of Google's Android platform to further optimize its product development
processes, while also providing consumers with an open, expansive and evolving user
experience.

Sony announces "Video On Demand powered by Qriocity™" extending into

Europe, Also announces plans for "Music Unlimited powered by
Qriocity™" cloud-based music service
Berlin, Germany, Sony Corporation (Sony) said that it was developing a network service
platform called Sony Online Services (SOLS), which is now called Qriocity™. Qriocity is a
network service platform that connects many of Sony's network-enabled devices and allows
consumers to enjoy high quality entertainment across multiple devices. Via Qriocity, Sony will
deliver a variety of digital entertainment content and services that are "powered by Qriocity",
including video, music, game applications, and e-books over time, and through these services,
and in combination with its networked devices, Sony aims to bring new and exciting
entertainment experiences to customers.
Sony commercializes world's first*1 16.41 Megapixel "Exmor R™" back-
illuminated CMOS image sensors for mobile phones
October 7, 2010, Tokyo, Japan - Sony Corporation announced the commercialization of two
new "Exmor R" back-illuminated CMOS image sensors with dramatically improved
photographic performance including significantly high sensitivity and low noise. In addition,
Sony will launch two new lens modules equipped with these image sensors, which also include
the smallest and thinnest*1 model for mobile phones. This is also the first time that "Exmor R" is
commercialized for the use in mobile phones.

Sony develops 1.2kWh-class energy storage module using lithium-ion

rechargeable batteries made from olivine-type lithium iron phosphate
Tokyo, Japan, June22, 2010 - Sony today announced the development of an energy storage
module using lithium-ion rechargeable batteries made with olivine-type lithium iron phosphate
as the cathode material (hereafter referred to as 'olivine-type lithium-ion iron phosphate cell').
Key features of olivine-type lithium iron phosphate cell include high power output, long-life
performance and excellent thermal stability. Sample shipments of the new module are scheduled
to begin from June, 2010. The newly-developed module is an energy storage module with
1.2kWh-class capacity. Multiple modules can be connected either in series or in parallel to easily
expand to a higher voltage or capacity. Furthermore, the new module is compatible with
stationary power supplies such as UPS (uninterruptible power supply) for data servers or as a
backup power supply for mobile phone wireless base stations.

Sony Develops a "Rollable" OTFT*1-driven OLED Display that can wrap

around a Pencil
Sony Corporation ('Sony') announced that it developed a super-flexible 80 μm-thick 4.1-in 121
ppi OTFT*1-driven full color OLED display which can be wrapped around a thin cylinder.
The most important contribution in innovations at Sony is due to its creative
work Force
Since its establishment in 1946, Sony has sought to remain at the forefront of technological
development, building continuously on its achievements to create new lifestyles. Sony has also
fostered groundbreaking new businesses, adopting an innovative approach to this challenge that
exceeds national and regional boundaries.

Believing its employees to be one of the most important aspects of its corporate foundation, Sony
acknowledges that its ongoing ability to offer dream-inspiring products, services and lifestyles
around the world depends on its ability to secure talented employees with a wide range of values
and personalities -- irrespective of nationality, culture, race, gender and the presence or absence
of physical limitations -- and to create employment environments that enable these individuals to
fulfill their potential.

Employee management communication

Sony values communication between management and employees, which is essential in

conveying management policies to employees and encouraging employees to voice their
opinions.

Human resources system, personal development

Sony aims to operate human resources system of next generation and to further encourage
personal growth through providing access to training programs tailored to different regional
needs.

Diversity

Sony actively utilizes and nurtures the diverse characteristics and ideas of our employees in each
region.
Human rights, equal opportunities

Sony strives to create dynamic workplaces where human rights are respected and equal
employment opportunities allow individuals to make the most of their capabilities.

Occupational health & safety

Sony strives to adopt sound labor and employment practices and to maintain a healthy, safe and
productive work environment.

Work life balance

Sony seeks to offer versatile working styles that cater to different lifestyles and enable
employees to fully express their abilities.

Conclusion

In production, Sony also shone its innovative light. Besides the fact that one of the early
production locales was in a decrepit wooden shack where workers had to use
umbrellas to protect themselves (and the electronics!) from the leaky roof, Sony co-
founder Ibuka had the vision of a plant with fixed production and a strict plant
while giving people freedom to do what they wanted. In the 1960s, he gave
instructions to the new head of Sony's semiconductor plant: "You are free to do
there whatever you like. Try to do something truly creative." The plant manager
removed clocks, implemented a voluntary pay system for meals, abolished worker
dormitories in place of small homes and formed a "cell" method of manufacturing
whereby small teams would develop their own production output targets.
Management's role was to help the cells solve production dilemmas.

Sony's human resource policies broke all traditions. Sony eschewed the common Japanese
method of consensus in decision-making (called ringi) and gave people authority to make
 independent decisions. New Sony employees of all ranks and descriptions were required
to spend a few months on the production line to learn the company's products and
processes. Furthermore, Sony placed engineers and scientists in sales jobs to understand
that new products also needed to be saleable. Sony sought to fill senior posts with people
from a wide variety of backgrounds. For example, Norio Ohga, who became the
company's chairman in the mid-1990s, was hired on in a management role earlier while
he was rising to fame as an opera baritone. The collective group of differences in Sony's
management made the company known as the "guinea pig" (Ibuka was even given a
statue of a guinea pig by the Emperor of Japan).

Fast-forwarding to 2006, is Sony still the innovative guinea pig it once was? Along with that
challenging question, students are also asked to think about how Sony can apply its process for
innovation to its current challenges such as: the dominance of Apple's iPod; grappling with the
convergence between mobile phones and game sets; the transition from CRT televisions to LCD
(liquid-crystal display) TVs; and the last major "fight for the format" between Sony's BluRay
DVD technology and Toshiba?s HD-DVD. Furthermore, the question naturally surges forward
as to whether or not Sony should divest itself of the content business and shed its movie studio
and record label.

Reference:

http://www.sony.net/SonyInfo/

http://www.Sony - Wikipedia, the free encyclopedia.mht

http://www.Sony Global - Basic Philosophy of Supply Chain Management.htm

http://www.sony.Innovation%20and%20Liability%20for%20Contributory%20Copyright
%20Infringement.htm

http://www.Sony Global - CSR Enlightenment.htm

http://www.Sony%20Global%20-%20Design1.htm

http://www.Sony%20Global%20%20Innovation%20for%20Sustainability.htm
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http://www.Sony%20Global%20-%20Marketing1.htm