Impact of Corporate Philosophy Expression on Financial Performance during COVID-19 Pandemic

Abstract

The research project aims to examine the impact of corporate philosophy expression on financial performance during the COVID-19 pandemic to derive valuable insights for corporate survival. Two Japanese beverage companies were selected for analysis based on their corporate philosophies: one with a clear corporate philosophy and one with an unclear one. Subsequently, a comparative analysis was conducted on the expressions of corporate philosophies and the financial performance data during the pandemic. As a result, a company with a clear corporate philosophy showed more stable growth in operating, ordinary, and net profit margins compared to a company with an unclear one. In return on equity, a company with a clear corporate philosophy showed moderate but stable increasing trends, while a company with an unclear one experienced moderate and fluctuating decreasing trends. The research from the analysis concluded that a corporate philosophy expression had an impact on financial performance. The author considers that a clear corporate philosophy could serve as a clear guideline for decision-making and action by management executives and employees, enabling them to easily comprehend and make timely and appropriate decisions and actions during the COVID-19 pandemic before the situation got worse, and leading to a positive financial outcome. The research findings are beneficial for corporate survival. No previous studies have conducted a comparative analysis of corporate philosophy expression and financial performance. Consequently, the research project is distinctive and pioneering.