Sony: The Essence of Purpose-Led Management Driving "Kando"

Sony Group has dramatically transformed its business portfolio from its former identity as an "electronics giant" into a "creative entertainment company with a solid foundation of technology" ¹. This evolution is not merely a shift in business domains but a strategic reorganization based on a deep sense of corporate identity. At the heart of this transformation lies the company's clearly defined corporate philosophy: its "Purpose" and "Values."

In January 2019, under the leadership of then-CEO Kenichiro Yoshida, Sony formally established its Group Purpose: "Fill the world with emotion, through the power of creativity and technology," alongside the management direction of "Getting closer to people" ¹. This was not a mere branding exercise; it was a strategic decision aimed at unifying a diversifying, globalized organization and guiding it toward long-term value creation.

This article analyzes how Sony’s clearly defined Purpose and Values unify its diverse global operations, foster a culture of innovation rooted in its founding spirit, and drive specific brand actions and strategic decision-making. We will examine how this philosophy-led management contributes to the company's strategy, organizational culture, and brand value.

Sustainable Growth Guided by Sony’s Purpose

The formal definition of Sony’s Purpose and Values in 2019 was driven by the strategic necessity of diversification and globalization. While rooted in electronics, Sony expanded its reach into gaming, music, pictures, financial services, and semiconductors ², growing into a massive conglomerate with over 110,000 employees worldwide ³. While this diversity is a strength, it also presented challenges in maintaining organizational cohesion and a unified direction ⁴.

Management at the time, particularly CEO Yoshida and then-Senior Executive Vice President Abe, recognized the need to define a clear answer to the question "Who is Sony?" to align employees from diverse backgrounds ⁴. As the weight of the entertainment business grew, redefining the group’s reason for being became essential for sustainable growth ³. The formulation process emphasized listening to employee feedback and extensive executive discussion ³, ultimately choosing the word "Purpose" for its clarity in a global context ³. Thus, the formalization of the Purpose was more than a clarification of identity; it was a direct response to the complexity brought by successful diversification—an essential management tool to ensure consistency across a vast global enterprise.

In defining this new Purpose, Sony was acutely conscious of continuity with its history, specifically the "Founding Prospectus" drafted by co-founder Masaru Ibuka in 1946 ⁵. The prospectus famously called for the "establishment of an ideal factory that stresses a spirit of freedom and open-mindedness," and aimed to contribute to "Japanese reconstruction and the elevation of culture" through technology ⁵. The modern Purpose—using the "power of creativity and technology" to "fill the world with emotion"—is positioned as a contemporary reinterpretation of this founding spirit ⁴. Abe noted that the establishment of the Purpose and Values was a "redefinition of the corporate philosophy passed down since the founding, translated into clear language by the management team" ⁴. By strategically leveraging its historical assets, Sony ensures its modern Purpose is viewed not as a break from the past, but as an evolution of its DNA, giving the philosophy legitimacy and deep cultural resonance. This roots an abstract concept in Sony’s concrete heritage, making it feel authentic and relatable to employees and stakeholders.

The defined Purpose has a clear impact on specific management strategies and resource allocation. Based on the Purpose and the direction of "Getting closer to people," Sony has intensified investments in creative content IP (intellectual property) and creators—the sources of "Kando" (emotion) ⁶—while pursuing enhanced user experiences ⁷. The company also aims to expand the "space" where Kando is delivered from physical environments to virtual and mobile spaces ⁷. The CEO prioritizes discussing strategies through the lens of the Purpose during corporate strategy meetings ⁴, and the company is focused on integrating sustainability into its management strategy and embedding it across all business activities ⁸.

Regarding resource allocation, there is a visible trend toward prioritizing areas aligned with the Purpose—specifically IP creation and direct consumer engagement—over short-term profit seeking. This is reflected in the heavy investment in the Entertainment segments (Game & Network Services, Music, and Pictures) and the Imaging & Sensing Solutions (I&SS) business ⁶. These sectors are closely tied to the "creativity, technology, and emotion" outlined in the Purpose and serve as Sony’s growth engines. Financial reports confirm revenue growth and strategic focus in these areas ⁶. Sony explicitly states its goal to enhance corporate value by pursuing innovation and sound business practices based on its Purpose ⁵, demonstrating that the Purpose functions as a filter for strategic decision-making, guiding resources toward long-term value creation. While isolating the direct impact on stock price is difficult, it is clear that the Purpose forms the foundation of a strategy aimed at long-term corporate value enhancement ⁹.

Table 1: Sony Group Purpose & Values

Source: 3

Table 2: Key Milestones in the Evolution of Sony’s Philosophy

Source: 4

Purpose Fostering Organizational Culture and Innovation

Sony Group’s Purpose and Values are not merely external declarations; they are intended to function as the internal engine for cultural formation and innovation. Specifically, the four Values—"Dreams & Curiosity," "Diversity," "Integrity & Sincerity," and "Sustainability"—provide a concrete code of conduct and define the desired characteristics of the organization.

"Diversity," in particular, is positioned as a strategically vital element that goes beyond simple compliance. Sony believes that diverse talent and differing perspectives lead to better outcomes and serve as the source of creativity and superior decision-making ¹. By respecting diversity in nationality, race, gender, and values, Sony aims to bring together individuals with varied backgrounds to spark the exchange of knowledge and expand growth opportunities ⁷. The company works to foster an inclusive environment through Employee Resource Groups (ERGs), cross-cultural communication events, and diversity lectures ¹⁰.

Another key value, "Dreams & Curiosity," is linked to the strong will toward innovation inherited throughout Sony’s history. The "spirit of challenge" to "do what others do not," present since the founding, is carried into the modern era through this value, forming a foundation that encourages employees to pioneer the future without fear of failure ⁸.

To embed these ideals throughout the organization, Sony employs a multi-layered approach. When the Purpose was announced, then-CEO Yoshida released a video message to employees and sent a signed letter expressing his thoughts. Visual aids, such as posters using key graphics, were distributed to global offices to promote emotional and visual understanding ³. Furthermore, "Purpose Ambassadors" were appointed within each group company to drive implementation ³, and management continues to weave Purpose-based messaging into various forums ⁷.

Abe, who led Sony’s HR strategy, referenced the "7:2:1 Rule" of behavioral change: 70% of influence comes from corporate philosophy and culture, 20% from role models like supervisors and peers, and only about 10% from HR systems and policies ¹¹. This suggests that Sony’s efforts go beyond system design, emphasizing the importance of organizational culture and leadership. The HR department focuses on communicating the "story" behind policies, including specific successes and failures, to gain employee empathy ¹¹. This reflects a belief that deep cultural transformation is achieved not through rule changes, but through a shift in the consciousness and behavior of the entire organization.

The role of leadership is also paramount. Former CEO Kazuo Hirai argued that leaders need EQ (Emotional Quotient) more than IQ, emphasizing "person-to-person" communication that "speaks from the heart" ¹². He stressed the importance of not just defining Purpose and Values, but going to the front lines to explain them until employees truly internalize them ¹². Similarly, Abe noted that changing the mindset of management—who serve as role models—requires showcasing specific behavioral examples and encouraging learning from both challenges and failures ¹¹. Sony’s system of reflecting engagement survey results in executive compensation is one concrete measure used to drive this management mindset shift from the top down.

The resulting organizational culture—one that embraces diverse perspectives (Diversity) and encourages new challenges (Dreams & Curiosity)—is directly linked to Sony’s innovative capacity ¹³. This connection is evident in specific product development cases.

For instance, in the project to revive the "aibo" entertainment robot, a cross-functional team was formed. Individual members, driven by passion, worked toward the goal of creating a "unique existence" and a "lovable robot" ¹⁴. The development focused not just on functional excellence, but on the emotional bond with the owner and the robot's "personality." This was a direct realization of the Purpose to create "Kando" and a challenge fueled by "Dreams & Curiosity."

Similarly, the development of the "LinkBuds" truly wireless headphones began by identifying shifting music consumption habits among younger generations and the emerging need for "ambient listening" ¹⁵. This is an example of the "Diversity" value leading to the discovery of diverse user needs. To meet these needs, the R&D department utilized its original "ring driver unit" technology to propose a new "Always On" usage scenario ¹⁵. This approach of pursuing specific user experience value rather than just competing on specs demonstrates how "Dreams & Curiosity" can generate product concepts that break traditional molds.

These cases suggest that Sony’s innovation process is deeply intertwined with its corporate culture and values. "Diversity" prompts the discovery of new market opportunities, while "Dreams & Curiosity" supports difficult technical challenges and unconventional product development. In this way, abstract philosophy crystallizes into concrete product differentiation and new value propositions.

Sony’s Brand Actions: Materializing Kando

For Sony, the Purpose and its associated Values are more than ideological words. They are translated into specific products, services, and corporate activities, playing a vital role in forming the perceived value of the Sony brand. Here, we analyze these concrete brand actions through three case studies.

Case Study 1: LinkBuds – Connecting Worlds

The "LinkBuds" headphones, released in 2022, are a symbolic product embodying Sony’s Purpose and its "Getting closer to people" direction. The signature ring-type driver unit allows ambient sound to blend naturally with online audio without blocking the ear ¹⁵. This provides a new user experience: staying "Always On" with digital information and entertainment without cutting off the real world or conversations.

This development is deeply tied to Sony’s Values: "Curiosity" regarding new usage patterns among younger generations ¹⁵, "Diversity" in addressing needs different from standard noise cancellation ¹⁵, and "Creativity" in using unique "Technology" (the ring driver) to create a new experience.

Furthermore, LinkBuds technology has been applied to "Eye Navi," a walking navigation system for the visually impaired ¹⁶. By maximizing the user’s ability to utilize auditory information, this collaboration contributes to accessibility and demonstrates Sony’s commitment to a more inclusive society. LinkBuds is not just a pursuit of technical specs; it is a product that materializes the Purpose of innovating how people connect with the digital and physical worlds to create new "Kando."

Case Study 2: aibo – Engineering Emotion

The rebirth of "aibo," the entertainment robot that debuted in 1999 and was once discontinued, was also a strategic decision based on Sony’s Purpose. Utilizing AI and robotics to foster an emotional bond ("Kando") with owners ¹⁴, this project is a direct practice of "filling the world with emotion through the power of creativity and technology." Despite potential criticism of reviving an old product, Sony invested in the latest AI, sensing, and cloud technologies ¹⁷ to redefine aibo as a "unique partner" that learns and grows ¹⁴.

The way aibo responds to an owner's voice and remembers being petted can be seen as an exploration of "Getting closer to people" in the context of non-human relationships ¹⁸. Furthermore, aibo is used in social contribution activities, such as therapy support in medical and nursing facilities ¹⁹. This highlights the value of "Sustainability" and contribution to society in a broader sense. The revival of aibo reinforced the image of Sony as a company that sincerely uses technology to touch human emotions, positioning the brand at the intersection of entertainment, AI, and companionship.

Case Study 3: Sustainability – Integrating Responsibility into Business

Sony lists "Sustainability" as one of its four Values ⁸ and has translated this into concrete action plans, most notably "Road to Zero," a long-term environmental plan aiming for a zero environmental footprint ²⁰. Based on this, the company sets environmental targets across the product lifecycle, promoting renewable energy ²⁰ and eliminating plastic from product packaging (e.g., in headphone products ²¹). This demonstrates that sustainability is treated as a core business and development challenge rather than a mere peripheral philosophy.

Sony’s sustainability efforts extend beyond the environment to community contribution. A key example is the "Okinawa Coffee Project," a public-private academic partnership aiming for large-scale domestic coffee cultivation in Okinawa ²². This project addresses regional issues like abandoned farmland and a lack of agricultural successors while potentially creating a new local specialty brand ²³. Other activities, such as supporting adoption events for rescued cats ²², demonstrate engagement with diverse communities.

These activities show that Sony views "Sustainability" through multiple lenses—environmental conservation (Road to Zero), product-based contribution (packaging), and community investment (Okinawa Coffee Project)—and seeks to weave responsibility into the fabric of its business. These are positioned as strategic initiatives that can lead to new value creation and brand enhancement, rather than just cost centers or risk management.

Conclusion

The journey of Sony Group vividly illustrates how a clearly defined corporate philosophy, actively shared and practiced across an organization, can serve as a powerful management compass. The Purpose and the four Values function as an integrative mechanism that aligns Sony’s diverse businesses and global workforce toward a common goal.

As analyzed in this article, this framework is not just rhetoric; it leads to specific strategic decisions (focus on IP and creators, enhanced user experience), the cultivation of organizational culture (respect for diversity, encouragement of challenges), and the creation of innovation (LinkBuds, aibo). Furthermore, through brand actions like sustainability initiatives (Road to Zero, Okinawa Coffee Project), Sony demonstrates its philosophy to both internal and external stakeholders. The fact that management repeatedly returns to the Purpose to explain the connection between strategy and activity is proof that the philosophy remains a living management tool rather than a hollow slogan ²⁴.

The lessons from Sony’s experience are highly suggestive for modern executives. In an era of diversification and disruptive change, an authentic Purpose deeply rooted in the organization can be a source of competitive advantage, fostering adaptability, innovation, and stakeholder trust. The key is not just defining a Purpose, but the execution required to constantly weave it into every corner of strategy, culture, and daily operations. As Sony demonstrates, philosophy-led management is a potent approach to achieving sustainable corporate value creation from a long-term perspective.

References

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Footnotes

1. Why Sony established a new Purpose: Turning "Diversity" into a strength... ↩ ↩² ↩³

2. The unexpected scene at Sony's strategy briefing: No TVs or Audio... | DOL Special Report ↩

3. Part 2: The Evolution from Corporate Philosophy to Purpose Management ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

4. A company and employees challenging themselves to create a "place" that ignites the heart... ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶

5. Sony Group Portal | Founder's Philosophy and Sustainability... ↩ ↩² ↩³

6. Sony's Growth Strategy ↩ ↩² ↩³

7. Sony Group Corporation FY2024 Corporate Strategy Meeting [Official] - YouTube ↩ ↩² ↩³ ↩⁴ ↩⁵

8. Sony Group Portal | Sony's Purpose & Values ↩ ↩² ↩³

9. Corporate Report 2024 - Sony ↩

10. Our Culture and Values Careers at Sony Pictures Entertainment, Inc. ↩

11. Finding leaders of change and blooming talent... HR and Business... ↩ ↩² ↩³

12. What is leadership that truly values people and Purpose? - SmartHR Mag. ↩ ↩²

13. 5 MVV Success Stories! Tips for formulating and embedding MVV... - BlueNote ↩

14. The determination behind aibo's revival. Why Sony took on AI robotics after 12 years | Article | HIP ↩ ↩² ↩³

15. Products that "hit" consumers through total war! Sony talks LinkBuds development - AV Watch ↩ ↩² ↩³ ↩⁴ ↩⁵

16. Seeing surroundings with sound. What is "intuitive" voice navigation enabled by open-ear headphones? - Sony ↩

17. Sony AIBO development secrets: Can aibo's revival be a symbol of Sony's revival? - Semicon Portal ↩

18. Sony Group Portal | News Release | Launch of Entertainment Robot "aibo" - Sony ↩

19. Interview with Sony "aibo" team: Social contributions only robots can do - Innovations Eye ↩

20. Environmental Activities | Sustainability - Sony Customer Service ↩ ↩²

21. Aligning 110,000 multi-business, multi-national employees. Sony Group's Purpose Management | CCL. ↩

22. What is Purpose Management? Learning from examples... ↩ ↩²

23. "Okinawa Coffee Project" | Stories | Nestlé Japan ↩

24. Shifting the center of corporate philosophy | FISCO Integrated Report ↩