[Sony] Presentation Slides 30March

COMM225: PR WritingRohan GUPTA

Darren TAY Teck YongMelissa LAW Shueh Li

Siti Zuhairah Binte MUSTAFA KAMALWijesuriya Arachchilage Dhanushka Sanjeewa Wijesuriya

2A looming threat

Sony’s corporate reputation is under

threat

Japanese corporate culture has been accused of being

incompatible with good corporate governance

Perception catalysed by the uncovered

accounting fraud at Olympus

What is the situation?

What is our stand?

How will we deal with it? Questions?

3

“Japan's corporate culture of denial, of ignoring problems and letting them fester, keeps running up against a globalised world that values agility, innovation and transparency. Olympus demonstrates all too painfully how much Old Japan tolerates a lack of accountability among senior executives, inadequate disclosure, a disinclination to challenge authority and absolute deference to corporate boards.”

- William Pesek, Bloomberg columnist


What is our stand?


4

Implications

Foreign Investor Confidence

Leading to a loss of foreign investment

Leading to a loss of business freedom

Value destruction

Reforms were undertaken to

strengthen corporate governance

Allegations create a gap between reality and

perception


What is our stand?


5

Japanese corporate culture is not

incompatible with good corporate governance

The vast majority of Japanese corporations are

upright and honest

Sony has always been above board

Sony consistently goes beyond legal prescriptions in corporate governance

Sony’s Position


What is our stand?


6

Action Plan

Key news media

Foreign investors

Key politicians and regulators


What is our stand?


7

Action PlanSource: Jaques, T. (2000) Don’t Just Stand There: The Do-It Plan for Effective Issue Management. pp. 121-133

To demonstrate Sony’s sound corporate

governance to relieve regulatory pressure and

prevent a fall in investment

Key news media understand the

issue and provide moderate and

balanced coverage

Foreign investors have good

information to maintain confidence

in the company Politicians and regulators accept

that increased regulation is not

warranted


What is our stand?


8

Engaging the Media

Identify journalists who have written about this issue

Draft press statement and Q&A

Identify potential corporations for

joint action

Coordinate joint response to the

issue

Brief specialist writers on our

position

Organise joint press conference

Commission detailed media monitoring

and analysis


What is our stand?


9

Reassuring Foreign Investors

Surveys, Focus Groups

Determine information

investors want

Develop investors’ information pack

Open dialogue session with institutional and individual investors


What is our stand?


10

Rallying Regulators’ Support

Develop full

submissionIdentify key

politicians/regulators

Develop joint response to opposing views

Develop information pack; conduct open dialogue

Identify academic to help with lobby

materials

External review of the impact of increased

regulation in overseas jurisdictions

Incorporate results of E&Y’s audit report


What is our stand?


11Timeline (Apr)

NOW

5 Apr

10 Apr

15 Apr

20 Apr

27 Apr

30 Apr

• Begin review of the impact of increased regulations

• Begin detailed media monitoring • Identify journalists• Prepare press materials• Identify corporations for joint action• Explore options for assessing investor

sentiment• Identify key politicians/regulators

• Coordinate joint corporations’ response

• Brief specialist writers• Develop response

position

• Organise joint press conference

• Develop investors’ information pack

• Develop information pack for regulators

12

Timeline (May)

7 May

9 May

25 May

• Identify experts to help prepare lobby material

• Conduct open dialogue with institutional and individual investors

• Develop full submission for regulators

13Position Paper

Negative perceptions of Japanese corporate culture

may lead to increased regulations or reduced

foreign investment

Sony has always been at the forefront of corporate

governance reform in Japan

It was the lack of compliance on the part of a

few rogue managers that led to the fraud at Olympus


What is our stand?


Senior managers’ main resource and handbook

14Media Statement

Conclusions from the Olympus’ third party investigation report

have been taken out of context

The situation at Olympus does not indicate a general

problem with Japan’s corporate culture

Japanese corporations need to take a

proactive approach to managing such

negative perceptions


What is our stand?


Gives a formal statement of Sony’s stand on the issue

15Biography

Hirai has amassed over two decades of

experience at Sony

Hirai’s role involves expanding Sony’s

portfolio and overseeing the company’s

corporate governance


What is our stand?


To introduce Kazuo Hirai as the new President and CEO

16Q&A

Sony has sound corporate governance

practices in place

Further regulation is unnecessary because

the corporate governance system in

Japan is sound


What is our stand?


Serves as a reference for responding to external stakeholders’ questions

17Speech Notes

Allegations that Japan’s corporate governance is incompatible with good corporate governance

are inaccurate

If this issue not managed, increased

regulation and a decrease in investments

may result

Sony needs to address the media, foreign investors and key

regulators proactively


What is our stand?


To rally the support of the Board to act on this issue

18Backgrounder

Since the 1970s, Sony has modeled itself on the US-style governance system

and has been listed on the New York Stock Exchange

(NYSE)

Ernst & Young’s audit has shown that Sony has a

sound and effective corporate governance

system


What is our stand?


Serves as supplementary information on Sony’s corporate governance history

19

Budget

Estimated Cost:

¥30,450,000 (US$364,000)

Venue Costs: ¥2,010,000 (US$24,000)

Primary Research: ¥16,700,000 (US$200,000)

External Legal Review:

¥8,400,000(US$100,000)

External Media Monitoring: ¥2,500,000 (US$30,000)

Academic Expert: ¥840,000

(US$10,000)


What is our stand?


20


What is our stand?


[Sony] Presentation Slides 30March

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