Learn in the textbookManagement Philosophy and Purpose
DefinitionManagement Philosophy (経営理念) sets out a company's basic thinking on why it does business and what it holds important.
ExplanationIt puts the leader's convictions and values into words and serves as an anchor that keeps day-to-day decisions consistent. For example, a company draws its vision on top of the philosophy, then turns it into a concrete management strategy and management plan for reaching that vision.
AnalogyLike a homeowner's idea of the life they want to live in a new house. The floor plan and the construction schedule are settled later, to give that idea a shape.
Memory hookIn the Japanese term, 理 means a guiding path and 念 means a thought held in mind. Split apart, it reads as a thought kept in mind as the guiding path of management.