Think ofwhen you get lost.

is the WAY we should go in●accordance with the management philosophy
and value.

●is also the WAY how we go.

shows you which isand how to proceed along● Let’s keep this book handy, and proceedalongthat this isshows you.

.

.

—— It’s great working atArakawa Chemical Group.

Even after retirement, everyone says, “It’s great working at Arakawa
Chemical Group”. I sincerely hope that Arakawa Chemical remains
such a company. In order to achieve this, it is necessary that everyone
working at Arakawa Chemical Group and their families are happy.
What is “happiness” about working at the company? That is, everyone

Foreword

sympathizes with the management philosophy and is excited about thefuture. Moreover, each and every one of us works with enthusiasm
toward the future, and continues to grow by reaching for higher goals.
I believe that everyone's growth is the company's growth, and it will
eventually lead to the realization of the management philosophy.
In order to realize the management philosophy together, this book
explains it in an easy-to-understand manner. It shows us what actions
we should take and helps us make the right decisions when we havedifficulties in daily work. Please always have this book handy and let it
help you with your daily life in order to pass on the 140-year history andtradition to the next generation.

March 2015

Tanioku Shozo, President (2013-2017)

1

2

Management Philosophy of
Arakawa Chemical GroupManagement philosophy is not just some decoration.
It should be practiced by each and every one of us.

43

Management Philosophy of Arakawa Chemical GroupManagement philosophy ofArakawa Chemical Group is…
【 Management Philosophy of Arakawa Chemical Group 】

Arakawa Chemical Group was founded in 1876, and has
been contributing to society as a manufacturer of intermediate

Develop individuality
and realize everyone’s dreams
through technology and service.

materials that give functionality to everyday life products such as
paper. Our company has been thriving for a long time because
we have been focusing on our core businesses while carefully
maintaining trust from customers and business partners. At thesame time, we have been developing our corporate culture that
respects and treats co-workers as a family. “Treat co-workers
as a family” means that each and every one of us treasures thebonds, and sometimes inspires each other with serious advice.
We are proud that we keep the company grow by growing
together like a family.
We, as members of Arakawa Chemical Group believe that ourmission is to pass on this tradition to the next generation.

56

Management Philosophy of Arakawa Chemical Group● Develop individuality

Our personal growth leads toeveryone’s dreams (happiness).

Developing individuality means to nurture the strength of each and every

co-worker in a working environment where they can work positively andvigorously. It is the source of our vitality and has to lead to the growth of thecompany. It is our wish to continue to be a company where employees are

happy at work. Furthermore, we develop a distinctive company by respecting

the way of thinking and culture of each country and region, and “bondingindividualities together.”● Create unique technologies and provide products

and services that meet expectation

We are a distinctive company that has been developing rosin derived

Oneself

products ahead of the industry with our unique technologies. We must keep onevolving to adapt to the changing world. We constantly provide “safe, reliable
and high quality” products and services worldwide that the market demands
through creative technological development.

Customer&Society

Realizationof everyone’sdreams.

● Realize more of everyone’s dreams“Everyone” refers to all who have relations to Arakawa Chemical Group

including co-workers. It is each and every co-worker that plays the leading

Companypart.

Everyone’s dreams can only be realized when co-workers work withenthusiasm, realize their own dreams, thus leading to company’s growth. Thiswill contribute to the prosperity of customers, business partners and society,and also lead to the growth of co-workers and the company. This virtuous
cycle realizes more dreams.

Based on this philosophy, Arakawa Chemical Group practices management
focusing on safety and environmental consideration as a chemical manufacture
and aims to be a company that continues to be recognized by society.

78leads us to happiness.

Management
philosophy

The FiveLet’s practice themanagement philosophy.

The FivWhich WAY
should we go?

9e10

The Five

In order to act in accordancewith “Arakawa Spirit” andset priorities

The Five

guides us
Difficulty of Goal

● Definition of “Arakawa Spirit”

The Five“Arakawa Spirit” refers to the way of thinking that Arakawa Chemical

Management
Philosophy
VisionAnnualPlan

Group has cherished over its long history as well as actions and practices
based on the mindset.

● What should we do now to achieve our goals?

MediumTerm
ManagemManagement
Plan

Value and Code of Conduct, “ the Five” shows you the way.

clarifies actions based on “Arakawa Spirit ” and its priorities.

Time Flow

The illustration above shows the positioning of.

Got it!

Management Philosophy ………. What a company or an organization exists for.
Vision ………. Future blueprint of medium-term objectives.
Medium-Term Management Plan ………. A concrete plan to realize vision.
Annual Plan ………. A one-year plan to achieve medium-term management plan.
*Vision, Medium-Term Management Plan and Annual Plan are all based on the Management
Philosophy.

1112

Shortstories
Part 1

commemorative ceremony was held there
in October 2014. It has been 3 years since
the Great East Japan Earthquake in 2011
and we made a new start for the future,inheriting the spirit of the predecessors.
On that very day three years ago, Onahama
Plant was hit by the earthquake. Osaka
Head Office immediately set up an emergency response team. The first delivery ofrelief supplies arrived at Onahama Plant swiftly from Osaka. Companies near theplant were surprised, saying "Why did your relief supplies come even more quickly
from Osaka than ours from Tokyo?” This was because our colleagues in all of theoffices and plants of ours and logistic companies made lots of efforts and we hadlearned a lot from the Great Hanshin-Awaji Earthquake back in 1995.
However, an even more severe disaster followed. The Fukushima Daiichi Nuclear
Power Station accident occurred. Tsukuba R&D Center provided great help when theemergency response team at Osaka Head Office called for evacuation of Onahama
Plant. Tsukuba R&D Center itself was also suffering from the disaster and thesituation was severe. However it still sheltered a total of ca. 250 fellow employees
and their families from Onahama Plant. Nearby apartments and hotel rooms werequickly arranged to provide further accommodation the next day. The plant helda series of gathering events afterwards with the R&D Center to express gratitude.

Practicing

Onahama Plant in Fukushima Prefecture
celebrated its 25th anniversary and theValue and Code of Conduct in accordancewith Arakawa Spirit

Pine Trees

The bond between Onahama Plant and Tsukuba R&D Center became even stronger
through these events.
At the end of the commemorative ceremony, the memorial pine trees were planted
by Tsukuba R&D Center to celebrate
Onahama Plant’s 25th anniversary. Thepine trees which witnessed the KIZUNA
between Onahama Plant and Tsukuba R&D
Center still grow strong today.

1314

Practicing

Do whatever
we can do now

Do what we are supposed
to doManagement Philosophy【People】

Get involved【Technology】

The Five

For the happiness of co-workers【Oneself】

Take the lead15

The five core values named “the Five

【Society】

Protection andcomplianceTradition andrevolution oftechnology【Customer】

Mutualprogress”define“Arakawa Spirit” that we cherish. These values show us
and how to proceed along

which way isthe“The Five.

”expresses what we are supposed

to do and what we do naturally every day. It is importantfor us to do it continuously.

16

Practicing

Value

Code of Conduct

Safety first【 Society 】

Protection andcomplianceWe, as members of Arakawa Chemical Group,
protect the lives of the employees andcompany's reputation.

We protect the lives of the employees and ensure
the safety of communities by giving safety thehighest priority.

Comply with the rules
Complying with internal and external rules isfundamental to an everlasting company.

Protect the environment
We keep environmentally friendly behavior inmind in every situation from product development
to production and sales.

1718

Practicing

ValueCode of Conduct

Treasure communication and teamwork【 People】

Get involved
We, as members of one big family of Arakawa
Chemical Group, take care of one another andimprove ourselves.

In order to achieve objectives, we support eachother by sharing our knowledge and ideas.

Recognize one another’s strengths
Everybody has his / her own strengths. We
recognize one another's strengths, inspire
each other and improve ourselves.

Enlighten each other with caring attitude
and improve ourselves together
Education is necessary for team achievements,
yet it should not be one-way. We improveourselves by teaching and being taught withcaring attitude.

1920

Practicing

Value

Code of Conduct

Have aspiration towards work
【 Oneself 】

Take the lead
We take the lead spontaneously with sense ofresponsibility while maintaining individuality in
one big family.

Setting a vision or concrete goal creates passion forwork and leads to a rewarding sense of satisfaction
and good performance.

Understand one's role andemphasize the strengths
We understand our role, develop necessary abilities
and perform our duty with professional awareness.

Accomplish our business withsense of responsibility
All tasks are important.
In order to accomplish our work, it is important to takethe lead with sense of responsibility.

2122

Practicing

Value【 Technology 】

Tradition and revolution oftechnology“ Technology ” consists of not only those directly
related to product development and manufacturing,
but also skills and know-how acquired throughvarious aspects of daily operations. We inherit ourpredecessors' technologies and create new values.

Code of Conduct

Make the most of existing knowledge
and pass down
We understand, improve and make the most of ouraccumulated know-how and new technologies, andpass them on to the next generation.

Be creative without compromise
In order to create new values, it is important to challenge
oneself to new things without compromise or fear offailure.

Grasp the changes and think without boundaries
We always grasp changes in environment andcircumstances, and adapt to changes in time andsociety by repeatedly innovating without being boundby existing practices and common sense.

2324

Practicing

Value【 Customer 】

Mutual progress
We share our joy with our customers by providing
satisfactory products and services and gainingcustomer trust. This is the driving force behind
our growth.

Code of Conduct

Keep in mind that everyone's work is
eventually connected to the customers
Our work is eventually involved with the customers even
if it appears not to be directly related. Accumulation of
everyone's careful work results in customer satisfaction.

Think for the customers andmeet the expectations
We always try to give our full attention to our customers,
work tenaciously until the expectations are met, andbuild trust relationships.

Provide products and services that constantly
delight the customers
Providing products and services that constantly satisfy
and delight the customers deepens customer trust.

25

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