Recently, the scope of CSR has been extended beyond corporate social and environmental activities to involve strategies for the entire organization. This is notably demonstrated in the Sustainable Development Goals (SDGs). In that sense, the Kurita Group has acted in line with the broader trend by organizing its management philosophy system and renewing its corporate vision to include a CSR perspective in 2017. The Company has stated its commitment to creating value related to water and the environment and this is clearly reflected in the medium-term management plan, MVP-22, which started in fiscal 2018. We think that the plan aims to further deepen the excellent business model that the Company has followed for 70 years and develop it as a global corporation through a transition from physical sales to providing solutions and the creation of a new business model, among other significant changes. Creating shared value (CSV) is positioned at the heart of this plan, and we highly evaluate this policy because it reflects the Company's role in society.
The Kurita Group's business can be described as contributing to environmental improvements of its corporate customers and creating shared value. However, looking more closely, the Company is also thinking about value that customers don't notice and creation of value with the customer in the future. We think this is visible in the CSV business through the creation and calculation of social value rather than economic value. A new business model is required of the Kurita Group with respect to the solving of social issues, which is the social mission of all companies under the current economic situation.
To approach this through the CSV business, the Company will need indicators for assessing social value. Since shared value is an abstract concept, to form business targets it is important to concretely define the shared value that can be supported by society and stimulate corporate activity, and to index it. We expect the Company to focus primarily on the pursuit of CSV, and to systemize its other CSR activities in terms of their relation to this.
The Kurita Group has also been rapidly expanding its business globally in recent years, and has established its CSR base as a global corporation. Overseas CSR activities of the Company do not seem to be as developed as activities in Japan yet, but those activities are also important for fostering a sense of unity as a Group. We also recommend that the Company promote CSR-oriented management to draw out employees' creativity and innovation, starting at the foundation level, such as penetration of the management philosophy.