# Daikin: Becoming the Global No. 1 through "People-Centered Management"

Daikin Industries has established itself as a global leader in the HVAC (Heating, Ventilation, and Air Conditioning) sector, with operations spanning more than 170 countries ¹. Its success is not built on superior technological prowess alone. At the root of the company’s sustained growth lies a corporate philosophy that has been consistently passed down and evolved since its founding—specifically, "People-Centered Management" (PCM). The new Group Philosophy, revised in 2024 to mark the company’s 100th anniversary, serves as a compass indicating how Daikin will address social issues and pursue sustainable growth in the future ². This article provides an in-depth analysis of how this philosophical framework specifically links to Daikin’s strategy, organizational culture, brand value, and financial performance, exploring the essentials of philosophy-driven management.

The 2024 Group Philosophy: Functioning as a Strategic Compass

The new Group Philosophy, established in May 2024, more clearly defines Daikin’s intended direction ³. At the beginning, the company defines its "Aspiration for the Daikin Group" as follows: "To continue providing comfort and peace of mind to people around the world is Daikin's mission and responsibility. Believing in the infinite potential of people, Daikin will harness passion to create new technologies and pave the way for a sustainable and prosperous future" ². This is summarized in the slogan, "Together, We Brighten the Future: Pursuing a prosperous future through the power of people," expressing a sense of purpose and social responsibility that goes beyond mere manufacturing ².

Of particular note is the strategic shift in the structure of the philosophy. In the new philosophy, Chapter 1 is titled "Contributing to the resolution of social issues and increasing corporate value." Meanwhile, "Anticipating 'future needs' and creating new value," which was Chapter 1 in the previous version (established in 2002), has been moved to Chapter 2 ⁴. In the old philosophy, "future needs" (the tsugi no hoshii) primarily focused on identifying latent needs that customers themselves had not yet realized, aiming to increase economic value through products and services ⁵. However, the change in order in the new philosophy signals Daikin's strong determination to place efforts toward social issues—including global environmental problems—at the very core of corporate value creation rather than treating them as secondary activities. This evolution is a necessary response to meet societal expectations and pursue sustainable growth, given the rising global demand for ESG (Environmental, Social, and Governance) performance and Daikin’s expanded global scale (with an 85% overseas sales ratio and approximately 100,000 employees) ⁵. The changes in the corporate environment and the resulting increase in expectations from society are cited as the direct motivations for this revision ³.

Furthermore, to translate this new philosophy into concrete actions, Daikin established "PCM Behaviors" as a code of conduct based on "People-Centered Management" ². These consist of three elements: "Innovation & Growth (Continuous Challenge and Growth)," "Trust & Teamwork (Building Genuine Relationships and Teamwork)," and "Winning & Achievement (A Commitment to Results)" ³. These are not abstract values but specific expectations for how each employee should act. By doing so, the comprehensive philosophy is directly linked to individual actions and contributions, strengthening the practice of PCM. It is noteworthy that Daikin has codified its corporate culture—once described as "tacit knowledge"—into clear, measurable behavioral guidelines ⁶. This ensures cultural consistency across a diversifying global workforce while explicitly demanding a commitment to performance through the "Winning & Achievement" pillar.

People-Centered Management: An Unwavering Core

"People-Centered Management" is the foundation of Daikin's management philosophy, based on the belief that "the sum of the growth of each individual working person is the foundation of a company's development" ⁷. This is not a mere slogan but the very DNA of the corporate culture, cultivated through years of activity since its founding ¹. Former Chairman Noriyuki Inoue stated that the essence of PCM is to interact with every employee with passion and "light a fire" in their hearts ⁶.

Importantly, this long-cultivated culture was explicitly incorporated into the main body of the philosophy in the 2024 revision as Chapter 6: "Practice ‘People-Centered Management,’ provide an environment full of opportunities to take on challenges, and where employees can continue to challenge themselves and grow" ². This elevated PCM from a mere cultural background to an officially stated strategic principle. This reflects management's intention to reconfirm the importance of this core value across an increasingly global and diverse organization, intentionally permeating and strengthening it.

Alignment Between Philosophy, Long-Term Vision, and Management Strategy

Daikin’s corporate philosophy is closely linked to specific management plans. For example, the strategic management plan "FUSION25," which concludes in fiscal year 2025, sets a basic policy of "providing new value for the environment and air to contribute to a sustainable society and achieve Group growth" ¹. Its key strategic themes—such as "Challenge to Carbon Neutrality," "Promotion of Solutions Business Connected with Customers," "Creation of Air Value," "Strengthening North American Air Conditioning Business," and "Enhancing Technology Development Capabilities"—directly correspond to the chapters of the revised Group Philosophy (Solving Social Issues, Anticipating Future Needs, World-Leading Technology, Global Thinking, and People-Centered Management) ¹.

In particular, the ambitious goal of "achieving net-zero greenhouse gas emissions by 2050," set forth in "Environmental Vision 2050" ⁸, embodies Chapter 1 (Social Issues) and Chapter 3 (World-Leading Technology) of the management philosophy. This is not merely a CSR activity but a core expression of Daikin’s purpose, serving as a powerful driver for innovations such as heat pump technology and the development of the next-generation refrigerant, R32 ⁹.

Evolution of the Daikin Group Philosophy: 2002 vs. 2024

Strategic Actions for Philosophy Integration

Daikin’s corporate philosophy is not limited to abstract concepts; it is manifested through specific business strategies, M&A, product development, and brand-building activities. The company’s actions consistently reflect its core beliefs.

Environmental Leadership as a Brand Identity

Daikin positions environmental initiatives not as mere regulatory compliance or social responsibility, but as the core identity of being an "Air Specialist" ¹. A prime example is the development and promotion of R32, a refrigerant with a low Global Warming Potential (GWP) ⁹. Most notably, Daikin made the bold decision to grant free access to 93 basic patents for R32 (as of 2019, later expanded to approximately 300) to the entire world ⁹. This move prioritized accelerating the reduction of environmental impact across the entire industry over short-term competitive advantage, embodying the philosophy of "contributing to society with world-leading technology" and "thinking and acting globally" ⁴. This strategic action went beyond technology sharing; it sent a powerful brand message that Daikin is a leader earnestly tackling environmental issues. The willingness to risk losing a technological edge to pursue a greater social good sets Daikin apart from typical corporate behavior, making its brand image unique and robust.

Similarly, the focus on heat pump technology as a pillar of the strategy to achieve carbon neutrality is a strategic action based on the philosophy ⁸. Especially in the European and North American markets, Daikin aims to balance Environmental Vision 2050 with business growth by promoting the transition from combustion-based heating and hot water systems using fossil fuels ⁸. Furthermore, long-term global forest restoration activities, such as the "Forests for the Air" project launched for the company’s 90th anniversary ¹¹, serve as philosophy-driven social contributions symbolizing the company’s commitment to air and the environment ¹².

Innovation for "Future Needs": Air Value and Solutions

To pursue Chapter 2 of the philosophy, "Anticipating 'future needs' and creating new value" ⁴, Daikin is working on the strategic theme of creating "Air Value" ¹. This aims to provide advanced value beyond simple cooling and heating, such as health promotion, improved concentration, and better sleep quality through air quality improvement ¹. The company is also actively utilizing open innovation, such as the "Value Creation of Air" vision formulated in collaboration with the University of Tokyo ¹³, to advance technological development that meets future needs.

Furthermore, Daikin is transforming into a "solutions business" to strengthen customer touchpoints and respond to deeper needs ⁴. This business model combines high-efficiency HVAC equipment with control systems, engineering, and maintenance services to provide optimized air environments and energy management for each customer. Examples include ZEB (Net Zero Energy Building) solutions aimed at zero energy consumption in buildings ¹⁴, the "DESICA" humidity control technology that balances comfort and energy savings ¹⁵, and cold chain solutions that contribute to reducing food loss ⁸. These are the practical applications of the philosophy—not just selling products, but "answering with air" to the challenges customers face.

Global Expansion Driven by Philosophy

Daikin’s global leadership has been supported by strategic M&A based on its philosophy. To pursue the philosophy of "thinking and acting globally" ¹⁰ and fulfill the mission of providing comfort and peace of mind to people worldwide ⁴, establishing a global business foundation was essential. Large-scale acquisitions, such as OYL Industries in 2006 (approx. ¥243.8 billion) ¹⁶ and Goodman Global in 2012 (approx. ¥296 billion) ¹⁷, were critical moves to strengthen its foundation in North America—the world's largest air conditioning market—and solidify its position as Global No. 1 ¹⁶. These investments were not merely for short-term financial returns but were strategic decisions to gain the global reach and technological capabilities needed to realize its philosophy from a long-term perspective. In the post-merger integration process, the PCM philosophy likely played a vital role in merging organizations with different corporate cultures and maximizing synergies.

Building the "Air Specialist" Brand

Daikin has established its brand purpose as "A Company that Answers with Air" and has engaged in consistent communication over many years ⁷. This slogan, used for over 20 years ¹⁸ (records indicate its use by 2010 ¹⁹), has played a crucial role in differentiating Daikin from diversified electronics manufacturers and establishing a unique position as a company providing expertise and solutions in "air" ¹⁸. It is a concise and powerful expression of Daikin's core business and its focus on "air" and the "environment" at the heart of its philosophy.

This brand image has been reinforced by innovative products. "Ururu Sarara," the world's first residential air conditioner with a waterless humidification function launched in 1999 ²⁰, introduced the new value of humidity control—not just temperature regulation—to the market. It became a product symbolizing Daikin's technological strength and its stance on anticipating "future needs." Additionally, the mascot "Pichon-kun," who appeared in "Ururu Sarara" commercials in 2000 ²¹, gained popularity for its adorable design. The character transformed the invisible concept of "air" into something familiar and approachable, significantly contributing to improved brand awareness. These products and characters effectively communicated the "Company that Answers with Air" message to consumers in a concrete and memorable way.

People-Centered Management: Shaping Daikin's Culture and Success

Daikin’s corporate philosophy, particularly the core of "People-Centered Management," permeates and influences not only external strategies and branding but also internal organizational culture, employee behavior, and ultimately, sustainable performance.

A Culture That Encourages Challenge and Growth

Daikin lists "Entrepreneurial Management," which respects employee autonomy and a challenging spirit, as one of its management principles ⁶. It has fostered an organizational culture that encourages learning from failure ⁶. This aligns with "Innovation & Growth," one of the PCM Behaviors ⁴. The corporate philosophy explicitly states the goal of providing an environment where employees can continue to challenge themselves and grow ². In its recruitment activities, Daikin seeks "100→0 talent"—innovators who aim for zero social issues and are not satisfied with the status quo ²².

This culture is supported by the attitude of top management. Former Chairman Noriyuki Inoue emphasizes that a leader’s role is to believe in the potential of every member and light a fire in their hearts ⁶. This view of leadership creates a fertile ground that draws out employee initiative and encourages the growth of the entire organization.

Mechanisms Enabling PCM

There are specific mechanisms to ensure PCM is practiced in daily operations rather than remaining a mere desk theory. One is the "Flat & Speed" principle ¹⁰. This behavioral principle encourages open communication regardless of hierarchy and rapid decision-making, ensuring organizational agility in a fast-changing market.

Even more unique is the "Coreman & Supporter" system ²³. Under this system, the person who proposes a new project (the Coreman) is supported by other members (Supporters), regardless of seniority or position. There are cases where young employees (in their 2nd to 5th year) act as Coremen while executives or senior managers serve as Supporters ²⁴. This system provides individual employees with opportunities for proactive challenge (Innovation & Growth) and promotes cooperation across departments and levels (Trust & Teamwork). It is a structural embodiment of PCM. It likely serves as a powerful driver for gathering ideas from the front lines and putting them into action, creating a dynamism not found in traditional hierarchical organizations. Such systems are considered a source of Daikin’s innovation and execution power.

Diversity as a Strength

The commitment to Diversity & Inclusion is another vital aspect of PCM ². At its root is the belief that every individual possesses unique talents and strengths regardless of age, gender, nationality, or disability, and that pooling these talents becomes the strength of the organization ⁴. Promoting the advancement of women ²⁴, employing people with disabilities ²⁵, and managing a diverse global workforce are positioned as strategic initiatives to enhance overall competitiveness by incorporating diverse perspectives and abilities, rather than just reacting to social demands.

The Link Between Culture and Performance

The culture of encouraging challenge, "Flat & Speed" operations, and the respect for diversity fostered by PCM are believed to contribute to Daikin's sustained growth and performance. During the management reforms in the period starting in FY1994, when the company achieved increased profits for 10 consecutive terms, the penetration of the management philosophy and the reform of employee consciousness were analyzed as key factors ¹⁰. The background of maintaining the Global No. 1 position ² is this unique organizational culture, which boosts employee motivation ²⁶ and generates adaptability to change and "first-class execution power" ⁶. In particular, the decision-making criterion known as the "60/40 Rule" (if there is 60% logic/certainty, execute and correct if necessary) ⁶ encourages action over lengthy analysis, supporting high-speed management. The "Winning & Achievement" element in PCM Behaviors ³ demonstrates that a people-oriented culture is not about being "soft," but is accompanied by a strong will and execution power to achieve high goals.

Daikin’s stance of maintaining and even strengthening this core PCM philosophy—even as it grows into a massive global corporation through repeated large acquisitions ¹⁶³—is an expression of an extremely intentional and systematic effort to realize sustainable value creation through cultural integration, not just gaining market share.

Conclusion: Philosophy-Driven Sustainable Growth

Daikin Industries’ remarkable growth and global leadership are inseparable from its deeply rooted and actively managed corporate philosophy—especially "People-Centered Management"—as much as its technological capabilities. This philosophy is not a static ornament; it evolves in response to changes in the business environment (as evidenced by the 2024 revision) and is translated into specific management strategies, a unique organizational culture, and a powerful brand identity.

Daikin demonstrates environmental leadership through bold actions like the free release of R32 refrigerant patents, placing social contribution at the core of value creation. It shows innovation by anticipating "future needs" and evolving its business model toward "Air Value" and solution-based services. Finally, it possesses organizational strength by encouraging employee challenge and growth through unique mechanisms like "Flat & Speed" and "Coreman & Supporter," harnessing the power of diverse talent. All of these are the results of strategic decision-making and execution based on a consistent philosophy.

Daikin proves that "People-Centered Management" is not mere idealism but a strategic approach for generating innovation, agility, and ultimately, superior performance. The company offers a compelling case study of how a clear, consistently applied philosophy that permeates the entire organization can serve as a source of sustainable competitive advantage in a globalized, rapidly changing world. The "growth-oriented atmosphere"—where people are valued and challenges are encouraged—is the most important driving force leading Daikin into the future.

出典

Footnotes

1. Daikin's Vision | About Daikin | Daikin Industries, Ltd. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

2. Integrated Report 2024 - Daikin Industries ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹

3. Establishment of the "Daikin Group Philosophy" | News Release | Daikin ... ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

4. Group Philosophy | About Daikin | Daikin Industries, Ltd. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹ ↩¹⁰ ↩¹¹ ↩¹²

5. Daikin Refreshes Management Philosophy for the First Time in 22 Years, Brand Practitioner Yoshitake Katayama... ↩ ↩² ↩³

6. Special Interview: Daikin Group Philosophy – Business Model and Organization/HR Management – Satoshi Funada, Senior Executive Officer, Daikin Industries, Ltd. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

7. Commonalities of Companies Practicing Purpose Management: Interview with Professor Takashi Nawa on "Conditions for Companies that Gain Empathy" | Daikin Industries: A Company that Answers with Air | Toyo Keizai Online ↩ ↩²

8. Formulation of Strategic Management Plan "FUSION25" | News Release | Daikin Industries, Ltd. ↩ ↩² ↩³ ↩⁴

9. Philosophy-Driven Management that Released Intellectual Property for Free - How to Foster "Awareness" for Leaders Who Want to Enhance Organizational Power: Becoming Your True Self and Our True Selves ↩ ↩² ↩³

10. New Improvement Power ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹

11. Daikin Industries, Ltd. - Developing Forest Works in Developing Countries - Visualizing Planting - Japan International Forestry Promotion & Cooperation Center ↩

12. SDGs Initiatives: Daikin Industries, Ltd. - coki ↩

13. Value Creation of Air Vision - Daikin UTokyo Lab ↩

14. ZEB | Design & Construction | Solutions - Daikin Airtechno, Ltd. ↩

15. Office 2012.12 Kagawa Prefecture Nankai Plywood Co., Ltd. Introduced "DESICA," a new air conditioning system with low impact on environment and health. Emphasizing Corporate Social Responsibility... - Solution Cases | Daikin Airtechno, Ltd. ↩

16. Integrated Report 2022 - Daikin Industries ↩ ↩² ↩³

17. Strengthening "Third Time's the Charm": Daikin's Acquisition of US Goodman - Diamond Online ↩

18. Learn Daikin's Brand Strategy and Customer Experience as "A Company that Answers with Air" - Power Interactive ↩ ↩²

19. Daikin Industries - Wikipedia ↩

20. Daikin "Ururu Sarara" Announces "Mid-range Air Conditioners" and "Dehumidifying Air Purifiers" in Addition to High-end Ones ～ Series Launched on 20th Anniversary - Kaden Watch ↩

21. Pichon-kun ↩

22. Thorough Explanation of Entry Sheet Strategies for Daikin Industries | Job Hunting Handbook ↩

23. 【Daikin Industries: 3-Minute Strategy】The Global Share No.1 Manufacturer Contributing to a "Sustainable Society." "Innovator Talent" with a Spirit of Challenge are Selected 【For 2023 Graduates】 - ONE CAREER ↩

24. Sustainability Briefing - Daikin Industries ↩ ↩²

25. Daikin Industries, Ltd. ↩

26. Kansai Gaidai Alumnus: Masaharu Minami (General Manager, Executive Secretariat, Daikin Industries; Class of 1990) / Life is a Once-in-a-Lifetime Encounter ↩