COURSERA

LECTURE NOTES
AN INTRODUCTION TO CORPORATE FINANCE

Franklin Allen
Wharton School
University of Pennsylvania
Fall 2013
WEEK 1
Section 2
The Objective Function for Corporations

Copyright 2013 by Franklin Allen

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FNCE 611 - Section 2 - Page 33

Appendix for Section 2

ASAHI BREWERIES, LTD.
Corporate Philosophy of Asahi Breweries, Ltd.
We at Asahi Breweries, Ltd., through our business activities including alcoholic and
nonalcoholic beverages, food and pharmaceuticals, wish to contribute to the health and wellbeing of people the world over. By thus contributing to society as a whole, the company seeks to
attain the trust and confidence of the consumer and develop still further.
1. Consumer Orientation
Identifying the best interests of consumers, we endeavor to meet their demands by
creating products suited for contemporary tastes and lifestyles.
2. Quality First
Open to consumer opinion of our products, we consistently enhance quality level and
extend technological capabilities in order to market the finest products in the industry.
3. Respect for Human Values
Our Company firmly believes that human beings are the core of the business, and follows
the principle of human values through developing human resources and implementing fair
personnel management. Each employee is encouraged to fully utilize his or her own potential,
and work to realize an open, positive thinking corporate culture.
4. True Partnership Between Labor and Management
Our Company aims to strengthen harmonious relations between labor and management
based on mutual understanding and trust. Both parties work hand in hand for corporate
development as well as the welfare of all employees.
5. Cooperation with Business Associates
We seek to build strong relations with all our business associates and affiliates in a spirit
of co-existence and co-prosperity based in mutual trust. At the same time, we are determined to
accept and fulfil our responsibilities as the core of the Asahi group of companies.
6. Social Responsibilities
We at Asahi, through securing and expanding the base of our operations, desire to fulfill
our responsibilities to stockholders and the local communities in which we operate. Also in
carrying out business activities, we sincerely observe the moral principles of management based
on social standards.

Figure 3

Job Security or Dividends

%
0

20

40

60

80

100

United States ~---==1:.:::0.:.:.8"-----------------.

/ - - - - - - - - - - - - - - - - - - - - - ' 89.2

Germanyl59.1
/ - - - - - - - - - - ' 40.9

-----60.4

Job security more important.

Dividends more important.

1-------~39.6

Number of firms surveyed: Japan, 68; United States, 83; United Kingdom, 75;
Germany, 105; France, 68.
Source: Masaru Yoshimori, "Whose Company Is It? The Concept of the Corporation in Japan and the West."
Long Range Planning, Vol. 28, No. 4, pp. 33-44, 1995.
From: Institute of Fiscal and Monetary Policy (1996), Chart III-4-6, p. 84.

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