Sony's founding purpose

Excerpts from Built to Last, Chapter 3, Page 50
Jim Collins, Jerry Porras

When Masaru Ibuka started Sony among the ruins of a defeated and devastated Japan, he rented an abandoned telephone operator’s room in the hollow remnants of a bombed and burned-out old department store in downtown Tokyo and, with seven employees and $1,600 of personal savings, began work.

He codified an ideology for his newly founded company. On May 7, 1946, less than ten months after moving to Tokyo - and long before turning a positive cash flow - he created a “prospectus” for the company that included the following items:

If it were possible to establish conditions where persons could become united with a firm spirit of teamwork, and exercise to their heart’s desire their technological capacity ... then such an organization could bring untold pleasure and untold benefits … Those of like minds have naturally come together to embark on these ideals.

PURPOSES OF INCORPORATION

• To establish a place of work where engineers can feel the joy of technological innovation, be aware of their mission to society, and work to their heart’s content.
• To pursue dynamic activities in technology and production for the reconstruction of Japan and the elevation of the nation’s culture.
• To apply advanced technology to the life of the general public.

MANAGEMENT GUIDELINES

• We shall eliminate any unfair profit-seeking, persistently emphasize substantial and essential work, and not merely pursue growth.
• We shall welcome technical difficulties and focus on highly sophisticated technical products that have great usefulness in society, regardless of the quantity involved.
• We shall place our main emphasis on ability, performance, and personal character, so that each individual can show the best in ability and skill.