CSR Report 2010
ZEON Corporation
Corporate Social Responsibility

Introducing the 2010 CSR Report
ZEON Corporation’s three-year mid-term management plan, PZ-3
(Proud ZEON-3), covering the years 2005 to 2007, set forth our CSRoriented management and established a shared awareness of its
importance across the entire ZEON Group. The company has worked
to expand its CSR through its business activities and regional andsocial involvement by strengthening its compliance systems,
establishing reliable and safe plants, and coexisting harmoniously withlocal communities.
In the IZ-60 (Innovation Zeon-60) three-year mid-term management planfor 2008 to 2010, we also intended to create environmentally friendly
products and factories and generate value, satisfying both our customers
and the wider society through our operations as a manufacturer thatemphasizes CSR, rigorously ensures compliance, and puts safety first,
while recognizing that the company is a social entity.
Furthermore, the ZEON Group has established a new ZEON CSR
Policy and a CSR Code of Conduct in fiscal 2010 as a fresh beginningfor participation in CSR activities.
This is the fifth year we have issued the CSR Report for all of our
stakeholders on the ZEON Group’s CSR activities since releasing the
Responsible Care Activity Report, which was previously published by
ZEON Corporation and subsequently renamed the CSR Report in2006. We have significantly changed the form for this year’s report,
which is now issued in two editions: a printed edition in the form of abrochure and a digital version that can be viewed via the Internet.
Content in the printed edition has been arranged to present ZEONGroup CSR activities in a simpler, easy-to-understand manner with afocus on special feature articles. The online version includes content
similar to that found in our previous publications, including reports bysite on our CSR activities.
We hope this report will enhance your understanding of the ZEONGroup’s CSR activities. Please do not hesitate to contact us with any
comments or questions you might have.
September 2010

Report Policy
This report was created in line with the following basic policy.
(1) The number of photographs and comments from individuals wereincreased to enhance the statement of employees.
(2) This report is issued annually.
(3) The report was collated with reference to the 2007 Environmental
Reporting Guidelines of the Ministry of the Environment and the 2006
Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI).
Organizations Covered
ZEON and the following subsidiaries and affiliates are included:
Japan: ZEON Kasei Co., Ltd., ZEON Polymix Inc. Optes Inc.,ZEON Chemicals Yonezawa Co., Ltd., RIMTEC Corp.,
Tokyo Zairyo Co., Ltd., ZEON Environmental Materials Co., Ltd.,ZEON Medical Inc., ZEON Yamaguchi Co., Ltd., ZEON North Co., Ltd.,
Okayama Butadiene Co., Ltd.
Overseas: ZEON Chemicals LP. (USA),ZEON Chemicals Europe Ltd. (UK), ZEON Chemicals Thailand
Co., Ltd. (Thailand), ZEON Advanced Polymix Co., Ltd. (Thailand)
Period Covered
April 2009 to March 2010
(also includes some new information from April 2010 and later)

Table of Contents ZEON Corporation CSR Report 2010

Table of Contents
MessagePresident’s Message ............................................................................................................................. 2
Business Overview ................................................................................................................................ 4
CSR at ZEON Corporation
Corporate Philosophy, ZEON CSR Policy and CSR Code of Conduct. .................................... 6
Environment Philosophy and Safety Philosophy ............................................................................ 8
CSR Promotion System........................................................................................................................ 9
Corporate Governance and Internal Controls................................................................................ 10
Special Features
Special Report 1-1 ZEON’s New CSR
Round-table Discussion: CSR at ZEON Corporation ............................................................. 13
Special Report 1-2: CSR Efforts at Each Plant . ........................................................................... 18
Special Report 2 Efforts for Mitigating Global Warming........................................................... 19
Special Report 3 Integrated Management of QMS and Quality Assurance . ...................... 20
Environmental Activities
Environmentally Conscious Products Development.................................................................... 22
Overview of 2009 Targets and Results...... 24
Third-Party Opinion..................................... 25

1

President’s Message

In April 2010, ZEON Corporation celebrated the 60th anniversary of the company’s founding. On behalf of all
the employees of ZEON Group, I would like to take this opportunity to convey our sincerest gratitude to all of
our stakeholders, including suppliers, customers, shareholders, investors, concerned parties of each of our
local plants and offices, and cooperating firms, whose support and contributions over the years have helped
us reach this milestone.
This is the final year of ZEON Corporation’s three-year mid-term management plan for 2008 to 2010 (IZ-60(Innovation Zeon 60)) launched in 2008. Although some revisions were made to our corporate targets in the
IZ-60 plan last year amid rapidly changing global economic conditions triggered by the so-called Lehman
Shock, we have operated our business with the goal of maximizing corporate value and creating
environmentally friendly factories and products. We have sought to do so as a manufacturer with a steadfast,preeminent commitment to CSR, rigorous compliance, and a safety-first approach. As a chemicals company
that acknowledges its position as a member of society, we intend to enrich society by applying our advanced
innovation capabilities to quickly deliver products that satisfy customers around the world. At the same time,
we will carry forward the deepening commitment expressed in our 2005 to 2007 management plan (PZ-3) toemphasize CSR in our operations in the context that “difficult times provide an opportunity for fundamental
change and build the foundation for future development” (2009 President’s Policy).
We have just started preparing our new three-year mid-term management plan for 2011 to 2013 with an eye
toward our 70th anniversary (2020). As a foundation for this plan, we established the ZEON CSR Policy andCSR Code of Conduct in April 2010 to publicly clarify our essential philosophy for CSR activities and call forall of us in the ZEON Group to forge a fresh, new beginning for our engagement in such activities.
The newly established ZEON CSR Policy consists of the following three policies within the framework of ourcorporate philosophy, “ZEON will contribute to the preservation of the Earth and the prosperity of the humanrace.”• We will ensure compliance and meet society’s needs for safety and security.
• We will contribute to sustainably developing society and protecting the global environment
through our corporate activities.
• We will ensure that each and every ZEON person is aware of CSR and acts accordingly.
These policies express the ZEON Group’s firm determination to publicly engage in CSR activities. In thiscontext, all our executives and employees are committed to take CSR to the next level through our businessactivities.
The 2010 President’s Policy challenges us to “increase the visibility of our business operations, enabling allof us to think and act quickly to be a company that takes on every challenge of the times.” Therefore, in fiscal
2010 we decided to address two major issues: reliable quality assurance (pursuing 100% yield rate in termsof quality assurance for all of our products) and increasing global competitiveness (realizing our global
competitive edge based on reliable, safe production), while maintaining our basic stance with a focus on
CSR.

2

Message ZEON Corporation CSR Report 2010

We believe the cornerstone of the foundation for our CSR
activities is to concentrate on our core business, that is, tocontribute to society through our business. The ZEONGroup has developed an impressive range ofenvironmentally friendly products through its “originaltechnology that does not imitate others and cannot itself
be imitated,” including fuel conserving tires, latex forgloves that reduces protein allergies, “Zeoglobule®”
polymerized toner that enables copiers to consume lessenergy, “ZEONOR®” and “ZEONEX®” cycloolefin polymer
products featuring outstanding optical characteristics forsuch applications as mobile phone camera lenses,“ZEONOR optical film®” produced by solvent-free
extrusion method to improve the energy efficiency of LCD
TVs and make them even thinner, and “Zeorora®” nextgeneration fluorochemical cleaning agent that won theStratospheric Ozone Protection Award in the UnitedStates and helps protect the ozone layer to prevent global
warming. We supply these products to society througheco-friendly, reliable and safe production methods established through our Responsible Care activities. In
addition, we expect to achieve even greater efficiencies and reliability through production innovation, New
Production System (NPS) and advances in our business operations.
Regarding compliance issues as a core concern of CSR, we intend to sincerely uphold the values and ethics
required of a corporate member of society, beyond legal and regulatory mandates, and by so doing maintain
fair business practices while conducting business in harmony with local communities and the general public.
Adhering to the newly established ZEON CSR Policy and CSR Code of Conduct, we plan to further advance
our CSR promotion system to revitalize our CSR activities, and aggressively apply this system to affiliatedgroup companies as well, including overseas affiliates.
In terms of information disclosure, we have always sought to offer as much data as possible in an easily
understandable form. At the same time, we updated the CSR topics on our website this year to improve theoverall presentation of information.
The ZEON Group will continue working to realize the sustainable development of society and meet thedemands and expectations of all of its stakeholders, including suppliers, customers, shareholders, investors,
concerned parties of each of our local plants and offices, and affiliated companies through timely action,
dialogue and contribution to society. Our goal is to establish ourselves as a group deeply committed to CSR,
that earns the trust of society at large as well as the pride of its employees by strengthening compliancesystems, establishing reliable and safe plants, and coexisting in harmony with local communities and thewider society.
Finally, I would like to say thank you for taking the time to review this report, and we welcome your opinions
and suggestions.
September 2010

Naozumi Furukawa
President and CEO

3

Business Overview
ZEON’s unique technology delivers vital benefits to society
ZEON’s extensive range of products occupies a commanding position, particularly in international markets. These
include synthetic rubber designed specifically for timing belts and other safety-critical components in automobile
engines, green note aroma chemicals (leaf alcohol) for perfumes and food flavors, and environmentally soundproducts such as lightweight, transparent cycloolefin polymer resins and etching gases for semiconductors that do
not damage the ozone layer.
At ZEON, we strive for innovative and revolutionary new technology that “does not imitate others” and “cannot itself
be imitated” while pursuing continuous improvement of our core strengths. Our ultimate aim is to establish aleading presence in society.

ZEON’s Business Sectors• Elastomer Business
Synthetic Rubber, Synthetic Latex,
Chemical Products• Specialty Material Business
Chemicals, Electronics Materials,
Specialty Plastics• Other Businesses
RIM, Medical Devices,
Other ProductsCompany Profile
Company Name: ZEON Corporation
Established: April 12, 1950
Capital: 24.2 billion Yen (as of March 31, 2010)
Employees: 2,815 (consolidated), 1,642 (ZEON Corporation only) (as of March 31, 2010)
Description of Businesses:• Elastomer Business: Manufacture and sale of synthetic rubber, synthetic latex, and chemical products• Specialty Materials Business: Manufacture and sale of chemical products, electronic materials, and specialty plastics• Other Businesses (including ZEON group businesses): RIM combination liquid and molded items,
medical equipment materials, butadiene extraction technology, vinyl chloride compounds, packaging anddistribution materials, building materials, etc.
Head Office: Shin-Marunouchi Center Building, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-8246 Japan
TEL: 03 (3216) 1772 (reception)
FAX: 03 (3216) 0501

4

CSR at ZEON Corporation ZEON Corporation CSR Report 2010

Elastomer BusinessSpecialty Material Business

Other Businesses• S ynthetic Rubber
Styrene-butadiene rubber,butadiene rubber, isoprene rubber,acrylonitrile-butadiene rubber,acrylic rubber, epichlorohydrin rubber,hydrogenated nitrile rubber,carbon master batch, etc.
• Synthetic Latex
Styrene-butadiene latex, butadiene latex,
acrylonitrile butadiene latex, acrylate latex• Chemical Products
C5 petroleum resin, thermoplastic
elastomer SIS, etc.

• Chemicals
Aroma chemicals, specialty solvents,
functional chemicals, etc.
• Electronics Materials
Photoresist, etching gas,
toner products, binder resin forelectromagnetic tape,sealing compounds for lithium-ion
rechargeable battery, binder for
lithium-ion rechargeable battery, etc.
• Specialty Plastics
Cycloolefin polymers and processed
products• RIM
Combined septic tank, building equipment
components, RIM (reaction injection
molding) combination liquid, construction
and agricultural equipment components,
game console cases, etc.
• Medical Devices
Various therapeutic catheters, etc.
• Other Products
Vinyl chloride compounds, butadiene
extraction technology, isoprene extraction
technology, butane-1 extraction technology,
synthetic rubber and latex manufacturing
technology, packaging and distribution
materials, and building and construction
materials

Gloves using synthetic latex

Mobile phone using specialty plastics

Timing belt using synthetic rubber

Raw film

Gaskets

Cycloolefin polymer

Elastomer Business

Other Businesses

18.4%
20.9 %
Specialty
Material
Business

2,259
millionyen

61.2%

Medical equipment (IABP balloon)

Combined septic tank

300

2,500

250

2,000

200

1,500

150

1,000

100

500

50

05

06

07

08

09

Consolidated Net Sales

FY■ Operating income■ Ordinary income

100 million yen
350

3,000

0

Sales Share (FY2009)

Perfumes using
aroma chemicals■ Consolidated Net Sales

100 million yen
3,500

Truck wind deflector made by RIM(Reaction Injection Molding)

0

05

06

07

08

09 FY

Operating income, Ordinary income

5

ZEON Group’s CSR

CSR Policy
Corporate Philosophy (Established April 1997)“ZEON will contribute to the preservation of the Earth andthe prosperity of the human race.”
In keeping with its name, which derives from the Greek words “geo” (the Earth) and “eon” (eternity), ZEON willcontribute to the sustainable development of people, society and the global environment through innovative worldclass technologies.

ZEON CSR Policy (Established April 2010)• We will ensure compliance and meet society’s needs forsafety and security.
• We will contribute to sustainably developing society andprotecting the global environment through our corporate activities.
• We will ensure that each and every ZEON person is aware of CSR andacts accordingly.

The ZEON CSR Policy has been established to replace ZEON’s 7 Articles (established September 1997) and willserve as the basic philosophy on which the ZEON Group’s CSR is built. Each policy is further defined as follows.

First principle
Beyond complying with laws and regulations, we intend to firmly uphold the values and ethics required of a corporate member ofsociety and cause no distress to society. Moreover, we will conduct all business operations appropriately in order to prevent
accidents, provide a sense of security to our employees as well as our local communities, thoroughly address quality and productliability issues, and undertake enterprise-wide environment and safety initiatives to avoid impairing the safety and security of society.

Second principle
We will contribute to the realization of a ubiquitous society and protect the global environment through our core business. We willencourage proactive action across the world, refine innovative technology, and continually create new products. As an indispensable
and valuable corporate citizen, we will enhance our corporate value and meet the expectations of society.

Third principle
Through our CSR management, we will continue to strengthen our corporate governance and ensure that all employees thoroughly
recognize CSR as a personal commitment, perform their duties in accordance with this understanding, achieve our mission to meetthe public’s expectations, and fulfill ZEON’s CSR with enthusiasm. We will remain dedicated to environmental preservation as well
as safety and quality assurance through the participation of every individual and in every corporate activity.

6

CSR at ZEON Corporation ZEON Corporation CSR Report 2010

CSR Code of Conduct (Established in April 2010)
This code of conduct was established after the ZEON CSR Policy by thoroughly reviewing the previous Zeon
Compliance Code of Business Practice (established October 2003). While the Zeon Compliance Code of Business
Practice was essentially regarded as a list of prohibited activities by stakeholder category, with an emphasis on
legal and regulatory compliance, the new code is intended to clearly outline the behavior to be progressively
adopted with the perspective of meeting society’s expectations in accordance with the ZEON CSR Policy.

CSR Code of Conduct
All directors and employees of the ZEON Group are committed to complying with the following code of
conduct based on the corporate philosophy and the ZEON CSR Policy.
1. Ensure compliance and meet society’s needs for safety and security(Establishment of CSR system and presence as role model by top management in ensuring compliance)i. Top management will demonstrate the utmost leadership and clarify the corporate philosophy, basic CSR policy
and CSR code of conduct to ensure that compliance matters are made well known throughout the company.
ii. Top management will establish a company-wide operating structure for CSR.
(Compliance with antitrust laws)
Under no circumstances shall we be engaged in any act that violates antitrust regulations such as cartels, collusive
tender, maintenance of resale price, or abuse of dominant bargaining position; we will engage in fair, free
corporate competition.
(Prohibition of entertaining and gift-giving to civil employees)
We will not entertain or offer gifts to civil employees or their equivalent.
(Severance of relationships with anti-social forces)i. Under no circumstances shall we provide benefits to or utilize the influence of anti-social forces (e.g. gangs,
racketeers, troublemakers and provokers of discrimination).
ii. We will not be engaged in any transaction with an anti-social force or any party related with an anti-social
force.
iii. We will deal with anti-social forces in a strong, fearless, non-provoking, non-despising, articulate andnon-submissive manner.
(Provision of product safety, manufacturing responsibility and product information)i. We will provide customers with quality goods, products and services that have high reliability and safety, andwill implement the necessary measures to prevent any damage occurring to the lives and assets of ourcustomers.
ii. We will properly provide customers with information on goods, products and services and respond sincerely toinquiries from customers.
(Selection of production service providers)
When outsourcing the manufacturing of products, we will ensure in advance that the service supplierdemonstrates strict compliance with laws and regulations and will continue to verify that stance throughout the
duration of our relationship with the service provider.
(Appropriate accounting treatment and disclosure of management information)i. We will accurately update and make postings on the accounting ledgers and tickets in accordance with therespective laws and regulations and our internal regulations.
ii. We will properly disclose management information of the ZEON Group, including financial data and status ofoperations.
(Protection of personal information)
We will properly manage personal information so as to prevent unauthorized access and leakage of information to
unrelated or outside parties.
(Management of confidential information of the company)
Confidential information of the company will be properly managed and will not be disclosed or leaked outside of
the company without prior consent.
(1) Confidential information of the company and of other companies will be placed under strict management andwill not be disclosed to outside parties or used for purposes other than for operations of the company.
(2) When disclosing confidential information of the company to an outside party, we will enter into a confidentiality
agreement with such party and make efforts to prevent leakage of information.
(3) We will not misappropriate confidential information of other companies or use the information for purposes
other than as authorized by the subject company or companies.
(4) After our employees leave the company, they will not disclose any confidential information of the company or ofother companies and will not use the information for any purpose whatsoever.
(Protection of intellectual property rights)
Intellectual property rights are crucial assets of the company, and we will properly make use of those rights andmake efforts to protect them.
(1) With respect to inventions associated with production and development, we will promptly apply for patents orprotect the relevant know-how and take other actions to protect the intellectual property rights of thecompany.
(2) In pursuing production and development, we will conduct appropriate research in advance to ensure that we do
not infringe upon the intellectual property rights of other parties.
(3) We will properly use and manage only the licenses that have been formally acquired and comply with theconditions of usage for any and every piece of software, and will not use illegal copies.
(Compliance with competition laws of other countries)
When pursuing business activities overseas, we will be fully aware of the Antitrust Law of the U.S., the Competition
Law of the EU and other laws and regulations of respective countries, and comply with such laws and regulations.
(Strict export management under a security pact)
With respect to all export transactions, we will conduct appropriate research, in advance, of the profile andbusiness conditions of counterparties to ensure that exported products and technologies are not used for thedevelopment of weapons and for other military purposes.
(Compliance with import and export regulations)
In pursuing import and export procedures, we will comply with trade-related laws and regulations, international
conventions and other rules.
(Prohibition of entertaining and gift-giving to foreign civil employees)
We will not provide or make promises to any foreign civil employees or their equivalent regarding benefits such as
money, or suggest to them the possibility of such benefits, in order to gain unauthorized benefit in business or in
return for a favor offered.
(Establishment of a safe, clean working environment)
We will place top priority on securing safety and hygiene in the workplace and make efforts to ensure such aworking environment is maintained. In addition, we will understand and comply with laws and regulations related
to operational safety and hygiene. Should an emergency situation arises while conducting business, we will makeefforts to keep the accident at the minimal level and ensure that we follow the respective procedures, including
immediate reporting, to prevent recurrence.
(Compliance with labor-related laws)
We will comply with laws and regulations related to labor and make efforts to maintain a pleasant, healthy working
environment.
(1) We will strictly manage working hours, breaks, holidays and annual paid leave to ensure that we do not violate
the Labor Standards Law.
(2) We will not force our employees to carry out operations including excessive labor and overtime.
(3) We will commit to maintaining sound physical and mental conditions of our employees at all times.

April 21, 2010

2. Contribute to sustainably developing society and protecting the global environment through our
corporate activities(Promotion of corporate activities)
Top management will present the goals and directions of corporate activities in the fiscal policy and the
medium-term management plan, and each department will implement specific actions and plans accordingly. Eachand every employee will understand these actions and plans and actively take steps to achieve the set goals anddirections.
(Dealing with environmental issues)i. With respect to research, development, production, sales and disposal of products, we will adequately
recognize the importance of environmental protection at all times, comply with environmental laws andregulations, and make efforts to manufacture products with due consideration to the environment.
ii. We will make continuous efforts to reduce harmful chemical substances, industrial wastes and CO2 gasemissions.
iii. When outsourcing the collection, transport and disposal of industrial wastes, we will take adequate caution in
selecting the service provider in order to prevent illegal disposal and will conduct periodical audits.
(Compliance with local laws and regulations and respect for cultures, traditions, customs and religions)
When pursuing business activities overseas, we will not only comply with the local laws and regulations but also
pay respect to the cultures, traditions, customs, religions and other characteristics of the respective country or
region.
(Contribution to society)As a good corporate citizen, each and every employee will collaborate with local society, be actively involved indealing with social contribution matters, and aim to form a corporation that is trusted by society.
(Communication with the society)
Through interacting with the local community and pursuing promotional activities, we will promote mutualcommunication between the company and the society(Security and disaster prevention)
We will properly conduct production activities and safekeeping and transport activities related to sales and preventthe occurrence of any accidents and emergency situations. Should an accident occur, we will make efforts topromptly prevent its escalation, secure the safety of the region and properly disclose information.

3. Ensure that each and every ZEON person is aware of CSR and acts accordingly(Compliance with internal regulations and respect for social standards)
All directors and employees of the company will not only comply with laws and regulations of Japan and ofrespective overseas countries and our internal regulations but also respect social standards.
(Prohibition of insider trading)
In conducting business activities, when accessing any internal information of the ZEON Group or of our businesscounterparts, we will not trade stocks and corporate bonds of the subject company or companies until theinformation is formally disclosed to the public.
(Respect for human rights and prohibition of discrimination)
We will make efforts to maintain a sound working environment at all times, respect the human rights of eachindividual, and not engage in any act that may lead to discrimination.
(1) We will not commit unlawful discrimination based on birth, nationality, race, ancestry, creed, religion, sex, age,disability, preference, academic history or any other characteristics.
(2) We will not force business operations through violence, jeering, abusing, smearing and threatening behavior,
nor will we infringe upon human rights through bullying and other such acts.
(3) We will not engage in child labor and forced labor nor will we purchase any product manufactured throughsuch labor.
(Prohibition of sexual harassment)
i. We will not commit sexual harassment or any act that may be misinterpreted by others as sexual harassment.
ii. We will not initiate unpleasant comments or acts of a sexual nature and be sure to prevent others fromdemonstrating such comments or acts.
(Prohibition of conflicts of interest)
We will not make use of our position in business or information obtained on duty to pursue any activity that may
damage the interest of the ZEON Group. We will also not take action that runs contrary to the benefits of the ZEONGroup without prior consent nor will we place ourselves in such a position.
(Reporting of violations against the code of conduct)i. When detecting or committing any act that violates or that may possibly violate the code of conduct herein, we
will promptly report the matter to a higher management and to the organization prescribed in the internal
regulations.
ii. The individual reporting such an act shall not be given any disadvantageous treatment whatsoever.
(Submission of pledge)
Directors and officers shall submit a pledge agreeing to comply with the code of conduct herein addressed to the
President & CEO.

4. Supplementary provisions(Scope of application of the code of conduct)
The code of conduct herein shall apply to all directors and employees of the ZEON Group. It will also be appliedcorrespondingly to dispatched workers and other individuals employed under part-time contracts.
(Application to overseas group companies)
Overseas group companies may, with prior approval from ZEON CORPORATION in Japan, make partial
amendments to the code of conduct in respect of local laws and regulations, cultures, traditions, customs,
religions and other characteristics.
(Penalty)
Any individual who has violated the code of conduct herein or has ignored a violation against the code of conduct
shall be penalized based on working regulations and other internal rules.
(Management department)
The code of conduct herein shall be managed by the Legal Department of ZEON CORPORATION Japan.

7

ZEON Group’s CSR

Environmental Philosophy and
Safety Philosophy
Environmental Philosophy and Safety Philosophy

Environmental
Philosophy

SafetyPhilosophy

1. Environmental protection is a mission of asocially responsible organization.
2. Our basic belief is that environmental
protection can be achieved with innovativetechnology.
3. Environmental protection will be achieved
when all employees work together with asense of mission to overcome challenges.

1. Safety is the foundation of all businessactivities and the greatest priority.
2. Our basic belief regarding safety is that
we can prevent all accidents.
3. Safety will be achieved by performing the
5Ss and when everyone takes
responsibility for their own actions.

Responsible Care Policy
1. Prioritize the environment and safety
Protecting the environment and ensuring safety are preconditions forall business activities and are the most important priorities.
We will work continuously to enact full accident prevention
countermeasures, and provide education and training for all
employees to prevent safety and environmental accidents.
2. Collect and distribute the latest information on
chemical products
We will collect, store and manage the latest information required forthe appropriate handling, use and disposal of chemical products,
and distribute them to employees and users.
3. Minimize the discharge of toxic chemicals and waste
We will work to reduce the discharge of hazardous chemical
substances, minimize waste, and develop technology for recycling
and reusing materials.
4. Promote activities for conserving resources and energy
We will aim to dramatically reduce the amount of energy we use andhelp alleviate global warming by developing innovative technology
and actively promoting resource and energy conservation activities
that involve all employees.

8

5. Take the environment and safety into accountwhen developing new processes and products andperforming quality assurance
We will perform thorough environmental and safety evaluations fromthe initial stages of research, develop technology and products thattake the environment and safety into account, and work to maintainand improve the quality of technology and products.
6. Live together with society
We will strictly observe regulations related to the environment andsafety, whether the regulations come from the local community, thenational government, overseas, or organizations to which we belong.
While cooperating in these activities, we will work to enhance ourcommunication with the local community and society in order toreceive a better understanding of ZEON’s activities and further
strengthen the trust that society has in our company.
7. Perform continuous improvements
We will continuously improve our environment safety management
and technology by operating a Responsible Care Audit, the Safety
Management System, an Environment Management System basedon ISO14001, and an Occupational Health and Safety Management
System.

CSR at ZEON Corporation ZEON Corporation CSR Report 2010

ZEON Group’s CSR

CSR Promotion System
A CSR Coordination Division was established to oversee the company’s social responsibilities
as part of organizational changes that occurred in June 2008.

CSR Promotion Organization

President

CSR Director

CSR Coordination
Division

CSR TeamInternal Auditing
Department

Risk Management
Conference

Risk Management
Committee

Environment and Safety
Conference

Compliance Committee

Quality Assurance
Conference

Anti-trust Law
Regulatory Committee

PL Conference

Export Security
Control Committee

Quality Assurance
Department

Public Relations
Committee

Corporate GovernanceCommittee

Legal Affairs Department

Corporate Communications& Public Affairs Group
Environmental & Safety
Affairs Department

CSR Promotion System

Meetings

Risk Management Conference (twice a year)
Discussion and decision-making concerning the progress reports from the five committees(Risk Management, Compliance, Anti-trust Law Regulatory Committee, Export Security
Control Committee and Corporate Governance Committee)
Chairman: President
Environment and Safety Conference (twice a year)
Discussion and decision-making concerning company-wide policies and actions on theenvironment and safety.
Chairman: President
Quality Assurance Conference (once a year)
Discussion and decision-making concerning company-wide policies and quality assurance
initiatives.
Chairman: President
PL Conference (twice a year)
Discussion and decision-making concerning fundamental, company-wide issues related tochemical safety and product liability.
Chairman: President

Committees Risk Management Committee
Prevention and control of risks.
Dealing with crises.

Export Security Control Committee
Proper export security control.

Compliance Committee
Prevention of violations of law. Education,
training and audits of compliance with law.

Corporate Governance Committee
Promotion of establishment and evaluationof internal control over financial reporting.

Anti-trust Law Regulatory Committee
Prevention of violations of the Anti-trust Law.

Public Relations Committee
Control of public relations activities to be
conducted appropriately in a timely manner.

9

ZEON Group’s CSR

Corporate Governance andInternal Controls
Our Basic Philosophy Regarding Corporate GovernanceThe company focuses on increasing profits and consistently enhancing corporate value while balancing the various
interests of its shareholders and other diverse stakeholders. To this end, we have been working to establish asystem that supports efficient and sound corporate management through corporate governance.
By putting into place our corporate governance system, we are clarifying the functions and roles of eachorganizational entity within the company and facilitating quick decision-making and implementation. We are also
accurately monitoring the status and results of our activities and disclosing information to improve business
transparency.
We are determined to further enhance our corporate governance system to effectively carry out these functions.

The components of our corporate governance structure are summarized below.
Board of Directors
Board of Directors meetings are, in principle, held every month with theattendance of corporate auditors to ensure the directors act incompliance with applicable laws and the articles of incorporation in theexecution of the company’s businesses. The Board of Directors
primarily makes decisions about basic management policy, strategies
and other key aspects of business execution, including directors’ duties
as stipulated by laws and regulations. At present, no outside directors
have been appointed as members of the Board of Directors.
Executive Committee
This committee is composed of the President and directors serving as
corporate executive officers at managing-director grade or above as
well as other members separately nominated by the President inaccordance with the rules for the Executive Committee. The committee
meets, in principle, twice a month and deliberates and decides onmatters including consultation with corporate auditors presenting
attendance. Of the agenda items discussed and determined by thecommittee, key items as stipulated in the regulations for the Board of
Directors are taken up by the board for further discussion anddeliberation.
Board of Corporate Auditors
The Board of Corporate Auditors is composed of five members,
including three outside corporate auditors. The board meets quarterly,
in principle, to report, discuss and resolve important issues related tocorporate audits.
In accordance with the auditing policy set by the Board of Corporate
Auditors, each member audits directors’ execution of duties throughvarious means, such as attending meetings of the Board of Directors
and monitoring the status of company business operations, including
subsidiaries.
Risk Management ConferenceThis conference discusses and decides on the annual activity plan of
the Risk Management, Compliance, Anti-trust Law and Regulatory,
Export Security Control, and Internal Control Committees, as well as
various measures related to this plan. This conference, which is chairedby the President and meets, in principle, twice a year, issues necessary
instructions to each committee after receiving their status reports.
Risk Management Committee
This committee was established to manage risks for maintaining
business continuity. It is responsible for systematically preventing
potential risks and gaining control over emerging risks. It is also
responsible for coordinating sound action to minimize loss from anycrisis that may occur. This committee meets from time to time as theneed arises.

10

Compliance Committee
This committee was established to prevent violations of laws andregulations and is responsible for creating education and training
programs and audit plans for legal compliance. The programs are
assigned to the department in charge of their implementation. The
purpose of this committee is to make sure each executive and employeeof the ZEON Group acts in full accordance with the values and ethics
that society expects of them, and by so doing maintains fair and proper
business practices while developing business in harmony with local
communities and the general public. This committee meets from time totime as the need arises.
Anti-trust Law Regulatory Committee
This entity was set up to proactively prevent any breaches of anti-trust
law by executives or employees of ZEON and the ZEON Group with thegoal of maintaining fair and free competition. The committee meetsfrom time to time as the need arises.
Export Security Control Committee
As the body responsible for exercising appropriate export security
controls, this committee oversees export and domestic sales of the
products and commodities the ZEON Group sells as well as thetechnologies provided by the Group in compliance with the foreignexchange law, the foreign trade control law and other applicable laws
and regulations. The committee meets from time to time as the needarises.
Corporate Governance Committee
This committee establishes and reviews internal controls related tofinancial reporting by the ZEON Group and administers the Group’s
internal reports as regulated by the Financial Instruments and Exchange
Law.
PL Conference
Basic policies and measures related to product liability are discussed
and decided on during this conference, which is chaired by the
President and meets twice a year, in principle.
Quality Assurance Conference
Policies and actions related to quality assurance are discussed anddecided on during this conference, which is chaired by the President
and meets once a year, in principle.
Environment and Safety ConferenceThis conference, which is chaired by the President and meets twice ayear, in principle, discusses and decides on policies and actions related
to the environment and safety.
Public Relations Committee
This committee, which meets from time to time as the need arises,deliberates on the content and availability of information to be disclosed
to ensure its appropriate and timely release.

CSR at ZEON Corporation ZEON Corporation CSR Report 2010

Governance System

General meeting of shareholders
Decisions, supervision(Appointments, dismissals)

Board of directors
Decisions, supervision(Appointments, dismissals)

Business implementation and internal
controls system(Appointments, dismissals)(Appointments, dismissals)

AuditsAuditors (board)

Collaboration (assistance)(Dismissal)
Collaboration

Accounting auditor

Audits

Accounting auditsCEO

Collaboration

PL
Conference

Environment
and Safety
Conference

PublicRelations
Committee

PL basic
policyBasic policy
for quality
assurance

Environmentand safety
policyAppropriate
information
disclosure

Corporate
ExportGovernance
Security Control
Committee
Committee
Ensuring
Appropriate
accuracy of
information
financial reporting
disclosure

Anti-trust
Law Regulatory
Committee
Compliancewith anti-trustlaw

Compliance
Committee
Prevention,
education,
training, audits

Audit
group

Reporting

Risk Management Conference
Quality
Assurance
Conference

Audit staff

Risk
Management
Committee
Problem
handling,
preventive
measuresInternal
auditsExternal
lawyerExecutive Committee

Business divisions, related departments, research laboratories, plants
Control, monitoring

Control, monitoring

Control, monitoring

Subsidiaries and affiliates

Reporting(external)
Reporting(internal) Reporting(internal)

Risk Management and Compliance System, andDetails of Each Committee’s Activity
Risk management and compliance activities of the ZEON Group are currently overseen by five committees (RiskManagement, Compliance, Anti-trust Law Regulatory, Export Security Control, and Corporate Governance) under
the supervision of the Risk Management Conference chaired by the President.

The specific activities conducted by each committee in fiscal 2009 are summarized below.
• The Risk Management Committee continued handling incidents asthey occurred and implemented preventive measures to prevent theirrecurrence in fiscal 2009. In particular, the committee developed
measures against the potential outbreak of new types of influenza aspart of the 2009 Business Continuity Plan (BCP).
• The Compliance Committee conducted a workshop on legal andregulatory compliance at each plant, as in the previous year, andcompletely revised Compliance Textbook II into a question andanswer format. Activities for improving the awareness of complianceissues by ZEON Group executives and employees during Compliance
Month included a call for compliance slogan submissions and a“message relay” on compliance. The committee also initiatedmeasures for revising the Action Plan for “ZEON’s 7 Articles” (Zeon
Compliance Code of Business Practice) in fiscal 2009.

• Preceding the introduction of several new price changes in fiscal
2009, the Anti-trust Law Regulatory Committee met in advance andthoroughly reviewed these changes before they went into effect. In
addition, a survey to ascertain the rate of attendance at industry
association meetings and in-house workshops on the anti-trust law
was conducted.
• The Export Security Control Committee met in fiscal 2009 with thegoal of establishing a workflow for examining applicable andinapplicable items as well as reviewing transaction evaluation sheets,
revising internal company rules, and holding training sessions on therevisions to address related partial amendments.
• The Corporate Governance Committee implemented activities to deal
with the company’s internal reporting system (described on thefollowing page) in fiscal 2009.

ZEON Group’s Risk Management and Compliance System

ZEON CSR Policy• We will ensure compliance andmeet society’s needs for safety
and security.
• We will contribute to sustainably
developing society and protecting
the global environment throughour corporate activities.
• We will ensure that each andevery ZEON person is aware of
CSR and acts accordingly.

Risk Management Conference
Compliance Committee
Local Compliance Committees
Prevention of law violations
Education, training, andaudit of compliance with laws
Risk Management Conference
Preventing violation of the
Antitrust Law
Risk Management Conference
Proper security export control

Risk Management Committee
Prevention and control of
Risks; Dealing with crises

Corporate GovernanceCommittee
Promote establishment andevaluation of internal controls
relating to financial reporting

Internal reporting system

Internal
route

External
route(1) Superior(2) Crisis
Management
Committee(3) Attorneyfrom law firm

Internal reporters
CSR Code of Conduct
Individual stakeholders of the ZEON Group such as its officers, employees, shareholders, and customers

Employees,
dispatched employees,
and officers andemployees of contractors

11

Risk Management and Compliance Activity Topics
Specific topics related to risk management and compliance, including actions related to Business Continuity
Planning (BCP), information security and J-SOX compliance, are summarized below.
BCP
BCPs are required for minimizing the impact on our neighboring
communities, customers, suppliers, and other affected groups.
These ensure that our business can continue to operate andrecover quickly in the event that risks such as natural disasters
including major earthquakes, an outbreak of a new influenza
strain, or fires caused by our plants actually occur.
The ZEON Group began developing such plans from a CSR
perspective in 2007, with specific components put into place

beginning in the following year. Five leading potential risk areas
have been addressed: a major earthquake in the Kanto region,
an explosion at a production plant, an outbreak of a new strain
of influenza, disruption of product distribution or supply of raw
materials, and product liability problems. We began reviewing
each of these risks, one by one, including responses to a new
influenza strain, in fiscal 2009.

Ensuring Information Security
In addition to establishing a comprehensive information
technology framework for improving operational efficiency andquality, the ZEON Group is also addressing information security.
A company-wide anti-virus system was installed in 1997,
security policies were established in 1999, a ZEON information
security code was established in 2002, and comprehensive
internal rules were established for affiliated group companies inJapan in 2005. An information systems committee chaired by
ZEON Corporation’s head of IT meets regularly as the top
decision-making body for matters relating to information
security.
Improving the level of information security requires more thanstructural and technical measures; it also depends upon theunderstanding and action of everyone involved. Therefore,
updated e-learning courses were conducted during 2008 as
part of a regular training regimen. Internal audits of information

security and information security training programs were also
conducted to ensure that policies were being correctly
implemented in the workplace and to reinforce employee
awareness of the importance of information security.
The Information Systems Department has also worked with anaffiliated company (ZIFTEC), which performs development,
operations, and maintenance work. The department has
worked to revise and improve business processes, andintroduce and deploy an Information Technology Infrastructure
Library to further reinforce internal controls and information
security. ZIFTEC received Information Security Management
Systems accreditation in 2004 and accreditation was renewed
after a review audit in fiscal 2009.

J-SOX Compliance
In fiscal 2008, during which the company’s internal reporting
system (known as J-SOX, the Japanese version of the
Sarbanes-Oxley Act) was adopted, we continued to step up ourefforts to bolster the system’s operation and prepared related
evaluation documents and processes. In addition to
implementing measures for guaranteeing the accuracy offinancial reporting by the ZEON Group, we have looked into
activities for improving business operations since adopting
J-SOX. Handling the system, however, proved to be overall
more of a challenge than we had expected and left us withfewer resources to implement other actions. Although our
auditors commented favorably on the appropriateness of ourinternal controls for financial reporting, we nevertheless sought,
through consultation with the auditor, to cut back the number ofsamples taken by half through reduction of the number of

12

performance evaluations required. We were consequently able
to significantly decrease the workload at our worksites, since
implementing these steps meant that in-house evaluators could
spend less time on evaluations with fewer samples taken. On
the other hand, we aggressively unified supervisory controls.
For example, we extended the reach of the system to strengthen
overall control by applying a system formerly used by one
department to other departments.
We again received a favorable comment from our auditors on
the appropriateness of our internal controls for financial reportingin the second year of J-SOX compliance. Nevertheless, we
intend to work even harder to bolster the reliability of our financial
reporting, as several issues remain unresolved.

ZEON Corporation CSR Report 2010

Special Report 1-1 ZEON’s New CSR

Round-table Discussion

CSR at ZEON Corporation
ParticipantsNaozumi Furukawa, President and CEO
Shunichi Yamamoto, Director of CSR
Natsuko Nakamura, (Specialty Materials Laboratory 1, R&D Center)
Yuichi Ishiguro, (Accounting & Finance Department, Head Office)Ryoji Oda (Elastomer & C5 Chemicals Laboratory, R&D Center)
Go Miyauchi (Energy Materials Department of Sales and Marketing, Head Office)Shuhei Okude (Product Technology - Optes, Specialty Plastics & Components Division, Head Office)A round-table discussion on the ZEON CSR Policy and CSR Code of Conduct, which were formulated in April 2010,
was held with President Furukawa and young employees on July 12, 2010. The event provided an opportunity forgaining deeper insight into how employees felt about CSR and future efforts. We also sought feedback on how we
can intensify CSR efforts at plants and offices.

Executive Thoughts on Formulating the
ZEON CSR Policy
Yamamoto: I have convened young employees andoffered them an opportunity to share their thoughts on
CSR. As the company determined the ZEON CSR Policy
and CSR Code of Conduct this April, I would like you to
discuss your everyday feelings about CSR and future
efforts with the hope that this discussion helps us all

gain deeper insight. First, I would like President Furukawa
to explain the background behind developing the CSR
Policy.
Furukawa: I always mention management with a strong
commitment to CSR in our annual reports and the 3-Year
Mid-Term Management Plan. These days, the world haschanged in such a way that any compliance violation
could result in the entire company ceasing to exist. The
impetus for this commitment was an incident that13

occurred in 2003 when I took up the post of president.
The company was under investigation by the courts forallegedly engaging in price-fixing with NBR in Europe
and North America. Then, on November 15, we received
the humiliating news that the self-safety inspections foraccreditation at the Mizushima and Tokuyama Plants
had been revoked by the Nuclear and Industrial Safety
Agency of the Ministry of Economy, Trade and Industry.
We were able to regain accreditation after taking thenecessary steps. Our concern for the ongoing situation,
however, has led us to shift our corporate structure tofocus on compliance.
In an effort to sincerely tackle this issue, we established
the Compliance Action Guide (ZEON’s 7 Articles) in2003. Compliance begins with following laws andregulations. While normally a company does not violate
laws, that alone does not justify its continuing right toexist. We came to the realization that we should evolve
into a company that serves society in a more positive
way. In that light, we established the ZEON CSR Policy
with the belief that we should project the correct CSR
message externally.

CSR that Individuals Need to Think About(What should each department do?)Yamamoto:
President
Furukawa has explained thebackground behind establish­
ing the ZEON CSR Policy.
Clause 3 of the policy
states, “individual employ­ees shall be aware of CSR
and take action.” I would like
you to talk about what steps
you are taking in each ofyour departments that isleading to CSR.
Nakamura: Currently, I’m developing new materials. I
believe there are roughly three important CSR-related
factors in R&D.
The first is safety. Working while ensuring the safety of
the workplace and the local community is customary;
we must, however, consider the safety of those who use
our products and the environment in which products areused as we release new ones. We try to select materials

14with this in mind.
Second, we must con­sider
the environment. This issue
may overlap with safety, butwhat makes it different isthat we should think about
the environment beginningwith research and develop­
ment. Examining whether aproduct
impacts
theenvironment at any point of
its lifecycle, from development, production, sales, anduse to disposal, is also important.
The third area is contribution to society. By considering
what users expect, what end users expect, and thevarious possible roadmaps for how technology could
advance, I would like to move forward with researchingand developing new, eco-friendly materials to offer tousers.
Ishiguro: I am in charge of accounting at the Head
Office. For me, CSR in daily operations is related to
paying taxes and IR activities. A company must pay
taxes to operate. I believe it’s also important to establish
a system for disclosing management information toshareholders and investors in a timely and appropriatemanner.
Oda: I am engaged in the
research and deve­lopmentof C5 elas­tomer. We value
product quality in researchand development. We also
strive to meet society’s
desireforsafetybyimproving products as well
as reducing CO2 emissions
to mitigate global warming.
Also, we shouldn’t forgetthat we want to contribute to the creation of a better
society by developing new products based on our own
proprietary technology.
Miyauchi: I am in charge of the sales of battery
materials. For us, CSR comes down to legal issues.
Specifically, we must adhere to anti-trust laws andSecurity Export Administration Regulations. Because
we are involved in customer’s battery development, I
believe we can contribute, although indirectly, to theconservation of the global environment. UnderstandingSpecial Features ZEON Corporation CSR Report 2010

customer expectations and offering innovative materials,
or discerning market needs and proposing new materials
to expand business is our CSR.
Okude: I belong to Product Technology - Optes of theSpecialty Plastics & Components Division, and my main
job is technical support for customers. To maintain close
customer relationships, I provide technical follow-up,
including provision of a variety of information, from
quality-related materials to contracts. In addition, as abridge between research and development, the plants,
and sales, I believe that assisting my work colleagues sothat they can do their jobs in a sound environment andthereby satisfy customers is important. In my department,
our customers have their own customers; therefore,
ensuring technical follow-up in a way that builds
confidence and satisfies end users is our CSR.
Yamamoto: Now, we have heard from five people about
their efforts and attitudes associated with CSR. What do
you think about their statements, President Furukawa?
Furukawa: I think they precisely reflect the criticalissues of CSR. Nowadays, in our society, we must
sufficiently consider the global environment throughout
the product life cycle: we provide materials to customers,
they make their own products, and ultimately, users
dispose of the products. Take fuel-efficient tires, forexample. Before becoming a product, they consume
energy, but after they have become a product they areenvironmentally friendly. We intend to more strongly
promote this concept. In terms of the environment, I
would like to see Life Cycle Assessment, which deeply
embeds into an organization the calculated balance of
earnings and expenditure of energy at the time of
production, customer use, and disposal is also important.
I believe all of you are thinking deeply about CSR in yourown workplaces and from your own perspectives.

Expectations for ZEON’s CSR and
Actual Efforts
Yamamoto: This is a valuable opportunity for directly
exchanging ideas with President Furukawa. Do you haveany questions for the president?
Ishiguro: The emphasis on
CSR has been in­corporated
into the president’s policy
since 2005. How do you
think the demands ofsociety upon ZEON andstakeholder
expectations
have changed over the last
five years?
Furukawa: Early on, people
were somewhat skeptical
about a materials maker boasting about its CSR.
Consequently, we tended to discuss our contributions tolocal communities, such as sponsoring local festivals,
cleanups around plants, and plant tours. Of course
these are important activities, and we are grateful ourplants and worksites do these things on their own.
Beyond these efforts, however, there is another way formaking an even greater difference in society, and that isthrough our products, such as energy-saving productsthat are environmentally friendly. When we begin to draw
upon natural energy sources, we will need equipment tostore energy. Since no one watches television only when
the sun is shining or the wind is blowing, there is a
growing demand for rechargeable batteries. What this15

means to us is that the ways in which we contribute tosociety may change as society itself changes.
Unless we work on protecting the environment, society
will not pay attention to us. I guess this is one majorchange.
Oda: Compared to 2005, when the company first beganemphasizing CSR, how much do you think CSR has
spread within the company and how has daily workchanged?
Furukawa: I would rather like to ask you that question.
[Laughing] I always wonder how much things reallychange. Putting that aside, I believe there have been big
changes. As plants become cleaner, my guess is that
employees feel more cheerful. What do you think?

Today’s society is flooded with information and there is asense of constantly being chased by something. Under
these circumstances, plant managers at ZEON aredemonstrating initiative under the motto, “Be happy andhave fun.” I sometimes worry that employees will become
too happy and have too much fun. [Laughing]
In any event, I believe things have substantially improved
since 2005.
Nakamura: I work at the R&D Center. My question for
President Furukawa has to do with the concept that
CSR means being a company that benefits society anddoes not cause society any harm. What specific efforts
can be done at ZEON in this context?
Furukawa: First of all, reliably supplying high-quality
products to society is fundamental. We must at least
maintain this foundation. Many other activities thenfollow, such as creating jobs, eagerly working on
environmental conservation, disclosing information,
protecting consumers, precisely responding toshareholders and so on. In short, all stakeholders,

16

including communities, shareholders, and customers,
should be able to regard ZEON as a sound enterprise,
and we should hear comments such as, “If it ispossible, I would like my children to work there,” “I’mglad I became a shareholder,” and “I’m glad that we
conducted business with ZEON.” This can be achieved
if employees do what they can from their own
perspectives and workplaces.

Future Issues for ZEON’s CSR
Miyauchi: Now we have a
ZEON CSR Policy and CSR
Code of Conduct. I think thenext task is to disseminate
them and help them takeroot. What plans do you
have in terms of employee
education?
Furukawa: Since we didn’t
have many oppor­­tunities forreceiving inquiries about
CSR using a regular format, we are now thinking aboutincorporating CSR training into legal training seminars
conducted by the Legal Affairs Department at eachplant. In regard to the ZEON CSR Policy and CSR Codeof Conduct, we have just distributed the current
compliance textbook to employees. We would, however,like to change this into the CSR Textbook, which will be
distributed in the second half of fiscal 2010 to all
employees to help instill CSR throughout the company.
Up to now, our training and seminars were complianceoriented, which given the circumstances was inevitable.
Since ZEON’s CSR training started with complianceissues, we intend to shift toward CSR education covering
a wider range of issues. In short, education is simply
repeating the message. Compliance has taken root in its
own way. Because of the shift in society toward a CSR
orientation, however, we may require new CSR education
efforts. In the future, we would like to appoint a manager
in charge of promoting CSR in each department or ateach plant and office, creating a system for taking action
with these individuals at the core. To this end, we arepreparing to set up a CSR Committee.
Okude: As mentioned several times already, I believe
CSR efforts will change in a quickly evolving market

Special Features ZEON Corporation CSR Report 2010environ­ment. How do you think the company should
respond to this change?
Furukawa: Well, the essence of CSR will not change interms of contributing to society. Specific efforts,
however, will change, and I think they should. In otherwords, the main principles under which the company
contributes to society are invariable whereas how wecontribute to society can change in accordance withchanging times and social
needs.
Okude: The goal of
disseminating CSR through­out the company has been
incorporated into various
CSR guidelines. On thispoint, I am clearly aware of
the importance of imple­
menting initiatives regularly
and repeatedly.

three concepts. In this sense, I do not exaggerate when
I say that individual abilities will be put to the test.
Okude: Optes Toyama Plant has many visitors that takea look at our products. I believe visitors feel this is apleasant place after seeing the condition of the plant
and the people working there. I have come to believethat those outside the plant do keep track of its condition,and that this can be a factor for winning customer trust.
Furukawa: When touring the plants of other companies,
if employees greet me with “Good morning” and theinside of the plant appears neat and clean, I think thatsurely the plant is a good one. On the contrary, if desks
are messy, I wonder what is going on there.

Intention of the ZEON CSR Policy
Furukawa: One major feature of the ZEON CSR Policy
and CSR Code of Conduct is that we place value on
making them easy to remember and easy to understand.
In ZEON’s 7 Articles formulated in 1997, only the catchphrase of each article stands out. Underneath thesearticles, however, are many more detailed policies suchas “Basic Management Policy, Article 5” and “ZEON
Logistics Management, Article 8.” Too many detailed
regulations are difficult to remember. In a modern
society like this, policies must be easy to remember sothey can be declared in unison. We simply cannot
remember many policies filled with details. [Laughing]
Mere slogans are not useful either. Unifying words andaction is necessary so they can be put into actual
practice. Based on this insight, the drafters of the CSR
Policy and the Code of Conduct were repeatedly
reminded to make them easy to understand.
Yamamoto: The draft was filled with various words andphrases. Yet as President Furukawa has just explained,
the policy and Code of Conduct were made moreconcise and reduced to only three items so that they
can be more easily recited in unison. Since thefundamentals were narrowed down to three items, I
would like everyone to deeply explore the spirit of these

Okude: When I joined the company, I was taught toalways be seen as a ZEON employee, since people
outside the company could not tell from my appearance
alone if I was a newcomer or an old hand. I believe
actions and appearance are important criteria for
judging a company.
Yamamoto: That’s true: our personal behavior is under
scrutiny, and our conduct can influence someone else’s
impression of ZEON.
While it feels like we could keep talking forever, I would
like to wrap things up. I hope all of you will continue tothink about what CSR means at your own workplaceand help to promote CSR. Thank you very much.

17

Special Report 1-2

CSR Efforts at Each Plant

Takaoka Plant
Approximately 800 people work in the Takaoka region at
locations associated with the ZEON Takaoka Group (theTakaoka Plant, laboratory, and affiliated companies, such as
Optes Inc., ZEON Medical Co., Ltd., and ZEON North Co.,
Ltd.). This large ZEON presence in Toyama Prefecture,especially in the Gosei district including Takaoka City, is often
unexpected and consistently attracts the attention of local

government and residents. To broadly instill the recently
established ZEON CSR Policy and CSR Code of Conduct inall employees of the ZEON Takaoka Group, we will strengthen
a sense of solidarity centered around the compliancecommittee and make a determined effort to contribute to theprosperity of the local community.

Kawasaki Plant
Since its establishment in 1959, the Kawasaki Plant hascontributed to society through the production of synthetic
rubber and synthetic latex over 50 years. We will continue toturn out products that benefit the general public in line with
the ZEON CSR Policy and CSR Code of Conduct. To thisend, we will continue to focus on reducing environmental
impact, such as water and air pollution as well as landfill
waste. We will also strive to exist in harmony with the local
community as a civically engaged plant that fulfills its
corporate social responsibility.

Tokuyama Plant
Location is a major feature of the Tokuyama Plant, which isadjacent to residential areas and the JR bullet train line andalso close to Tokuyama Station, Tokuyama Port, and the cityof Tokuyama. While we enjoy the convenience of our location,
we realize that we bear a larger social responsibility for theenvironment and safety. In accordance with the ZEON CSR

Policy, we will move forward with creating a reliable and safe
plant and endeavor to build a better living environment in thecommunity, including an emphasis on communication withlocal residents, reducing toxic chemical emissions, achieving
zero emissions in landfill disposal, and reducing water and air
pollution.

Mizushima Plant
The Mizushima Plant is working on a production innovation
program and thoroughly implementing “ABC,” which stands
for atarimae, bakashoujiki and chanto, or in English, earnestly
and properly performing the basic tasks we do all the time,
which seem routine to us. We are striving to be a reliable andsafe plant in which this ABC mindset is pervasive.
In terms of the ZEON CSR Policy, which was established thisyear, we understand we are “contributing to the sustainable
prosperity of society through safe production activities
without causing any inconveniences to customers or society.”
We intend to continue these efforts, ever-mindful that society
expects us to steadfastly pursue our production innovation
program and reliably provide quality products from a safe
plant in which the ABC concept has taken root.

R&D Center
Based on the ZEON CSR Policy, all employees at the R&D
Center conduct research with a full awareness of CSR. In
compliance, we follow applicable laws and regulations
through our product research activities and strive to be a safeand dynamic laboratory. To propose new research themes at
the R&D Center and appropriately allocate resources before
commencing research, the research and supervisory18

departments jointly review compliance with relevant laws andregulations, ensure the safety of chemical substances, study
and confirm safety measures, such as protecting researchers
from exposure, and conduct safety inspections for new
experiments. We intend to conduct research and development
for steadily supplying safe, reliable quality products andmerchandise to customers.

ZEON Corporation CSR Report 2010

Special Report 2

Efforts for Mitigating
Global Warming

Emphasizing harmony with the environment, ZEON is diligently working on mitigating global warming. Our mainefforts include (1) energy-saving initiatives at production plants; (2) the use of petroleum residue for fuel; and (3)reduction of greenhouse gas emissions.

1. Energy-saving initiatives
ZEON Corporation has participated in a voluntary action plan on
the environment through the Japan Chemical Industry
Association since fiscal 1997. Our goal is to reduce the averageenergy consumption rate for the fiscal 2008 to 2012 period to
87% of fiscal 1990.
In fiscal 2004, the Tokuyama Plant updated its generator systemand saved the crude oil equivalent of 2,500 kl per year in energy.
In the past, one boiler operated two turbines to produce 12,500
kW and 7,000 kW. Updating the generator to a high-efficient

17,200 kW turbine model improved the efficiency of electricalgeneration operating one boiler.
In fiscal 2006, greater efficiency was achieved by introducing a
new gas engine and updating thecogeneration system at the Kawasaki
Plant. As a result, we have saved 1,300 kl
per year in crude oil equivalent.

Cogeneration system at
the Kasawaki Plant

2. Use of petroleum residue for fuelAsahi Kasei Chemicals, ZEON and Nippon Petroleum Refining (the refining armof ENEOS) launched a joint program at the Mizushima industrial complex infiscal 2009 to save energy by recycling petroleum residue. The project has
been adopted as part of the NEDO Energy Conservation Project Support
Scheme. Nippon Petroleum Refining will build a new solvent de-asphalting line
at the Mizushima Refinery for extracting kerosene and light oil from asphalt andother heavy oil distillates. The petroleum residue generated by the extraction
process will be used as fuel for new boilers to be built by Asahi Kasei Chemicals
and ZEON. This will save energy by reducing the amount of heavy oil used. We
have achieved energy-savings of 38,400 kl per year in crude oil equivalent inthis project.
Although the unit consumption index declined to 95% due to a significant dropin plant use in fiscal 2008 in the wake of the financial meltdown of 2008,
remarkable improvement (74.6%) was achieved in fiscal 2009 as a result of
these energy-saving efforts. Looking ahead, we plan to implement a series of energy conservation actions that
we discovered through an energy analysis method called Pinch technology, increasing the likelihood we willachieve our goal of reducing the average energy consumption rate for the fiscal 2008 to 2012 period to 87% of
the fiscal 1990 rate.

Jointly built boiler

3. Reduction of greenhouse gas emissions
CO 2 emissions
Volume of emissions (1,000 tons)

Greenhouse gas emissions (ZEON’s targets CO2 only) in fiscal
2009 were approximately 530,000 tons per year, 83% of fiscal
1990 levels. The use of petroleum residue for fuel at theMizushima Plant, which reduced the use of fossil fuels, cut CO2
emissions by approximately 100,000 tons per year.
The Japanese government has pledged to the international
community to reduce greenhouse gas emissions by 2020 to
25% of 1990 levels. ZEON Corporation has participated in theCommitment to a Low Carbon Society advocated by Nippon
Keidanren through the Japan Chemical Industry Associationand is now drawing up a road map for reducing carbon dioxide
to achieve the targets.

800
700
600
500
400
300
200
100
0

90

05

06

07

08

09

FY

19

Special Report 3

Integrated Management of
QMS and Quality Assurance
Takashi Kiuchi, General Manager, Quality Assurance Department

The Foundation of CSR is Quality Assurance
President Furukawa stresses management with the emphasison CSR in his president’s policy every year, and I believe thefoundation of CSR for a manufacturer is quality assurance.
These days, large-scale recalls are often reported in thenewspaper, and if this were to happen at ZEON, the company
would face a life-and-death crisis.
I understand the Quality Assurance Department andEnvironmental & Safety Affairs Department were reorganized

into the CSR Coordination Division with the intention of giving
concrete form to the president’s statements. The Quality
Assurance Department is therefore working to improve thesystem of quality assurance and engage with R&D andproduction technology so that the intentions of top management
will permeate throughout the company. In addition, we are
steadfastly pursuing activities to reliably supply high-quality
products.

System for Spreading the President’s Intention Throughout the Company
First, it is important for the president’s policies to be implemented
by all employees in their own workplaces and from their own
perspectives. Since winning the Deming Prize in 1985, policy
management has been evolving in accordance with the needsof the times and has continued as an essential tool for handlingproblems. Unfortunately, there have been situations in which
quality assurance has been delayed for departments that
support our core businesses.
Concerned about ongoing conditions, the Quality Assurance
Conference was established in March 2010 to bring together top

executives with the president serving as chair to ensure that
quality problems were quickly identified and that instructions for
improvement were rapidly communicated to department
managers. In addition, the Quality Assurance Promotion
Conference was set up to ensure concrete implementation. This
group consists of managers who take the lead in quality
assurance in their departments and report to the Quality
Assurance Conference.

Newly established meeting bodies in which executives participate

Quality Assurance Conference(company-wide management review)

20

Quality Assurance Conference(the highest decision-making body for quality assurance)
Chaired by the president, held annually
Participants: Operational department heads, plant managers,
Director of R&D Center
Person in charge of the meeting: Director of CSR• Deliberation and decision-making on annual policy and actions• Deliberation and decision-making on annual plan for improvement

Quality Assurance Promotion Conference

Established as a subordinate body
Chaired by person in charge of company-wide quality control,
held biannually
Participants: Person in charge of company-wide quality control,
department managers in charge of quality control, technical managers,
managers of research and planning control,
production technology department• Formulation of and reporting on annual improvement activities plan
• Checking implementation status of quality assurance measures

Departmental Quality Assurance Conference(departmental management review)

Deliberation and decision-making on quality assurance fordepartments
Chaired by person in charge of departmental quality (system) assurance

ZEON Corporation CSR Report 2010

Company-wide Integration of QMS
In May 2010, we integrated ISO9001 certifications obtained byoperational divisions and plants into one certificationencompassing the entire enterprise so that the policy of top
management can be easily implemented throughout thecompany. To unify tasks and QMS, we are striving to deeply
embed quality management in operations by incorporating thequality manual into the work flow and entering system
improvements into the quality manual.
We also keep in mind that persons in charge of production must

perceive QMS as a company-wide quality management system
to encourage improvement. The manager of the Quality
Assurance Department oversees the management of quality in
an integrated QMS while maintaining and improving ISO
mechanisms. Apart from internal audits, the manager has theauthority to manage quality-related operations and give
instructions to correct problems or conduct quality audits ineach department.

Quality Manual Contents
1. General
2. Organization of quality management system
3. Definition of terms
4. Quality management system
4.1 General requirements
4.2 Responsibilities and authority
4.3 Management system
4.4 Documentation requirements
4.5 Quality management activities
5. Policy management process
5.1 Basic concept of policy management
5.2 Formulation of president’s annual policy
5.3 Formulation of department managers’
annual policy
5.4 Quality Assurance Conference
5.5 Quality Assurance Promotion Conference
5.6 Departmental Quality Assurance Conference

6. Design and development processes
6.1 Research management
6.2 Information collection
6.3 New product development
6.4 Product design
6.5 Decision-making on commercialization
6.6 Trial production(prototype and actual machines)
6.7 Full-scale production
7. Production processes
7.1 Procurement
7.2 Production standards
7.3 Initial production control
7.4 Production plan
7.5 Management of production facilities
7.6 Process and product inspections
7.7 Management of testing equipment
7.8 Management of non-conforming
products (identification and disposal)

8. Sales processes
8.1 Sales management
8.2 Logistics management
9. Improvement and modification processes
9.1 Dealing with complaints
9.2 Handling process abnormalities
9.3 Modification management
9.4 Improvement
9.5 Data analysis
9.6 Monitoring and measuring processes

Activities for Full Length and Full Volume Assurance
Inspecting random samples is a fundamental activity for ZEON
as a materials maker. Depending on how it is done, inspections
may guarantee only a portion of our products. Moreover, no
defective products or components are acceptable for the
automobile and electric appliance industries to which ourcustomers belong. To respond to this situation, activities for fulllength and full volume assurance have been launched under thepresident’s policy.
Although there is no single-piece concept for bulk products, weare striving to guarantee full volume by lot unit. After confirming

the rationality of standards for all products, we must substantiallyreduce discrepancies within a lot to a level that can be deemed
uniform.
To this end, we must search for flaws in polymer design andproduction technology, making full use of current scientificknowledge. Confirmed control items must be properly managed
at production sites. To promote this management, we aremoving ahead with innovative research and development withextensive discussions on the previously mentioned quality
audits as well as technology.

21

Environmental Activities

Environmentally Conscious
Product Development
Products that Promote Energy Saving
Nipol®S-SBR synthetic rubber for fuel-efficient tires
Synthetic rubber is the primary material used in car tires that contributes
to vehicle safety and comfort. As growing concern over the global
environment has led to stronger demand for more fuel-efficient tires,
ZEON has developed a synthetic rubber that reduces energy loss by
20%. This rubber is increasingly expected to be used for fuel-efficienttires certified by the fuel-efficient tire labeling system under the voluntarystandards of the tire industry.

Zeoglobule® Polymerized toner

Automobile tire made offuel-efficient synthetic rubber

Energy Savings

Pulverization is the conventional method for producing the toner used incopiers and other printing equipment. Polymerization is a recognized
toner production method for consuming less energy. The microcapsule
toner produced using the polymerization method developed by ZEON
contributes to better print quality at a lower fixing temperature. This inturn allows printers to achieve better energy efficiency.
Toner electron
microscope image

Reduction of
VOC Emissions

Products that Help Eliminate the Use of Organic Solvents
Binder for aqueous lithium-ion rechargeable batteries
By using water as a dispersant, ZEON’s binder for aqueous lithium-ion rechargeable batteries
eliminates the cost of solvent recovery and reprocessing that is required for the alternative material
PVDF (polyvinylidene fluoride), which uses NMP (N-methyl-2-pyrrolidone) as a solvent. This also
helps meet working condition standards at battery production plants and contributes to lower capital
investment and operating costs in these plants.

Environmentally Friendly Products that Conserve Energy
QUINTIER™ EV
ZEON developed the QUINTIERTM EV series of oxygen-impermeable
resins, which are as impermeable to oxygen as aluminum foil, by
combining our newly developed oxygen-absorbent resin with
ethylene-vinylalcohol copolymer (EVOH), a standard oxygenimpermeable resin.
When applying the QUINTIERTM EV series to packaging materials:
The shelf life of food products can be extended to help reduce foodwastes;
Metal packaging materials can be replaced with these materials,
leading to reduced energy consumption in transportation;
Refrigerated food products can be distributed at normal temperatures,
decreasing storage energy.
ZEON booth at TOKYO PACK

22

Environmental Activities ZEON Corporation CSR Report 2010

Products that Help Protect the Ozone Layer and Prevent Global Warming
Next-generation fluorocarbon detergent Zeorora® H,
Etching gas and Zeorora® ZFL-58

Detergent Objects

The Zeorora® H fluorocarbon detergent and Zeorora® ZFL-58 dry
etching gas used for manufacturing semiconductors received theStratospheric Ozone Protection Award from the U.S. Environmental
Protection Agency in 1998, and Zeorora subsequently won five awards,
including the GSC Environmental Award from the Green & Sustainable
Chemistry Network (GSCN) in 2003, and an excellence award at the Eleventh Ozone Layer Protection
and Global Warming Prevention Awards sponsored by Nikkan Kogyo Shimbun, Ltd., the Ministry of
Economy, Trade and Industry, and the Ministry of the Environment in 2008. Consequently, these globally
recognized products can contribute to mitigating global warming.

EPA Ozone
Protection Award

Products with Low Environmental Risks
New ether solvent

Cyclopentyl methyl ether (CPME)

Global Warming
Prevention

Reducing
Environmental
Risk

This is the first eco-friendly ether solvent in the world that was made in Japan. It is alandmark C5-derivative product that makes use of the properties of ether solventsand overcomes their shortcomings. CPME is now highly regarded for reducing
environmental impact (less waste water, effluents and CO2 emissions), avoiding
hazardous processes, and shortening processing times. It is therefore widely usedin the manufacture of high value-added products such as pharmaceuticals,
agrochemicals, aroma chemicals and electronics materials.
The product received a prize from the Society of Synthetic Organic Chemistry, Japan and was
mentioned in the 2008 progress report as the best practice of the NEDO project. It was also chosen
as a green solvent by the American Chemical Society in 2009.

Products with Low Environmental Risks Products that Promote Energy Saving
Cycloolefin polymer

ZEONEX® and ZEONORZEONEX® and ZEONOR® are new thermoplastics witha high level of transparency that are already being
used in optical lenses and optical film. Because these
thermoplastics are lighter by 20% or more thanconventional engineering plastics and have high heatresistance, they can be used in place of glass for ahigh level of transparency and for high-specific-gravity
engineering plastics such as heat-resistant plastics.
They are, therefore, contributing to greater mass
production and reduced weight, and are also expected
to improve the energy efficiency of transportationequipment during transport.

Lenses and prisms

Products that Support the Environment
ZEON Johkaso: GPU
Because this GPU-type johkaso (septic tank) is a combined unit that can be installed innearly the same space as existing stand-alone septic tanks, it has opened up possibilities
for converting stand-alone units to combined units.
The outer case is made from PENTAM® dicyclopentadiene resin, which exhibits excellent
shock-resistance, and blower power consumption meets the energy-saving standards
stipulated by the Japanese government. This johkaso, therefore, is tailored for the needsof a low-carbon society. In addition, its sophisticated processing unit also removes
nitrogen, contributing to the protection of our waterways.
23

Environmental Activities

Targets and Results
Overview of 2009 Targets and Results2009 Targets

Item2009 Results(1) Full implementation of plant safety evaluation

12(2) Implementation of 5S safety program and expand to affiliatedEliminategroup companies (all target workplaces and offices)
environmental andsafety incidents(3) Training to raise awareness of accident prevention(at 4 plants and 1 affiliated group company)

Promoteoccupational
health and safety

Evaluation

14 investigations performed☆☆☆

Same 5S safety audit was performed company-wide at 42 workplaces.
5S safety audits were also performed at affiliated group companies:
all target workplaces and offices☆☆☆

Implemented at all 4 plants(also implemented at head office and 1 affiliated group company)☆☆☆

(4) Zero environmental and safety incidents

No environmental incidents, no safety incidents☆☆☆

(1) Use risk assessment to eliminate dangers(more than 5 incidents per workplace in a year)

Risk assessments of workplace operations are conducted on anaverage of 5.9 times/workplace each year☆☆☆

(2) No lost-time accidents, no serious non-lost-time accidents

No lost-time accidents, no serious non-lost-time accidents☆☆☆

Reduce butadiene emissions from 2008 level of 18.4 tons to 4.1 tons

Butadiene: 5.4 tons (70% reduction from previous year)(2010 target: 3.9 tons)☆☆

Reduce acrylonitrile emissions from 2008 level of 14.2 tons to 11.5 tons

Acrylonitrile: 14.1 tons (1% reduction from previous year)(2010 target: 9.9 tons)☆

(1) Implement voluntary management plan for air-polluting
toxic substances

3(2) Implement zero emissions plan for industrial waste

Reduceenvironmental
impactFinal landfill amount: 166 tons (305-ton reduction from previous year)(2010 target: 211 tons)☆☆☆

Reduce unit energy consumption to 87% of 1990 level

Unit energy consumption was 74.6% of the 1990 level (2010 target:
87%)

☆☆☆

Improve unit energy consumption in logistics by 1% of 1990 level

Unit energy consumption in logistics: 4.6% deterioration from the 2009
level (2010 target: improve by 1% from the previous year)☆

(1) Implement product safety reviews for new products andnew applications

5 reviews performed☆☆☆

Issued MSDSs for all products and implemented revisions(implementation rate: 100%)☆☆☆

Performed fully☆☆☆

(4) Zero violations of law

No violations of law☆☆☆

(1) Promote employee understanding of yellow cards andcheck carrying status of these cards

Training performed through logistics council and confirmed carrying
status of yellow cards☆☆☆

(2) Zero logistics accidents

1 logistics accident

Reduce volume of waste sent to landfill to 430 tons in 2009(3) Strengthen company-wide energy conservation project45(2) Provide customers with environmental and safety information(MSDS)
Promote chemicalsafety and product(3) Report new substances (laws related to chemical substancesafetyinvestigation and production regulations, Occupational Health and
Safety Law)

Promote safety inlogistics☆

☆☆☆ Target reached ☆☆ Target was almost reached ☆ Requires improvement
2010 targets are shown in parenthesis in “Reduce environmental impact” section.
Overview of Environmental Impact

INPUT

OUTPUT

Energy199,000 kl(crude oil equivalent)
PRTR Substances Handled
711,000 tons
Water Resources
16,011,000 m3

24

R&D Center
Takaoka Plant
Kawasaki Plant
Tokushima Plant
Mizushima Plant

Products

Water Discharges

958,000 tons

Total wateramount14,981,000 m3
COD
126 tons
Total nitrogen
135 tons
Total phosphorus
2 tons

Amospheric Discharges
PRTR substances
CO2
SOx
NOx

29 tons
537,000 tons
461 tons
420 tons

Industrial Waste
Final landfill
Recycled

166 tons
5,300 tons

Environmental Activities / Third-Party Opinion ZEON Corporation CSR Report 2010

Third-Party Opinion
Review of the ZEON Corporation CSR Report
Hitoshi Okada (Dr. of Engineering/Professional Engineer)
Senior Researcher
Institute for Environmental Management Accounting■ CSR Objectives at ZEON Corporation
With the establishment of a ZEON CSR Policy and CSR Code of
Conduct, which replaced ZEON’s 7 Articles, ZEON Corporation took amajor step forward in corporate social responsibility (CSR). The CSR
Policy is quite easy to understand, with its essence distilled into threestatements that employees can periodically declare in unison. The
Code lays out specific guidelines that ZEON employees are expected tofollow. In addition, executives have expressed their strong resolve for
CSR in the President’s Message and at roundtable discussions withyoung employees. In reviewing the 2010 CSR Report, one can clearlygrasp ZEON Corporation’s firm determination to clearly set out a new
direction for CSR and to sincerely interact with society. I very muchappreciate this attitude toward CSR. I look forward to seeing ZEON
further manifest this commitment by inspiring employees and more
broadly disseminating CSR as well as by communicating withstakeholders to more accurately understand the needs of society.
■ Enthusiastic Efforts for Quality Assurance
CSR represents the responsibilities a company bears for society. When
thinking about what should be done for society as a corporate
responsibility, quality assurance is without doubt one of the mostimportant responsibilities for ZEON, whose products form thefoundation of industries around the world. ZEON listed “trust in quality”
as a key concern in the president’s policy for fiscal 2010. Then, tosystematically embody this concern, the company has implemented aquality assurance meeting headed by the president with integrated
quality assurance management. It also launched the “full length, fullvolume assurance” activities advocated by the president, thereby
establishing a framework at ZEON for promoting quality assurance
activities at the highest level. Looking ahead, I expect ZEON to set goals
for its activities, to move forward with management utilizing PDCA
cycles, and to report on the results of these actions to society.
■ Efforts for the Global Environment
Efforts for the global environment are another key responsibility
companies must fulfill for society. By recognizing the need to mitigate
global warming, reduce environmental impact, and ensure the safety ofchemical substances and products as key CSR concerns for ZEON, an
enterprise that contributes to society by supplying chemical products,
the company is developing environmentally sound products andeffective management, including measures for saving energy.
Quantitative targets against the previous year had been set for some
aspects of the environmental plans for fiscal 2009. Although the targets
in some areas have not been achieved, most targets have been met. In

Response to Third-Party Opinion

the future, I would like to see ZEON further advance its use of quantitative
targets to enhance the objectivity of its assessment of performanceoutcomes.
■ Disclosing Information to Society
In addition to conventional printed reports, ZEON Corporation began
publishing information on a web site this fiscal year, thereby increasing
the volume of information shared with the public. As site reports andmore detailed environmental information have been moved to the website, more information concerning items related to society has been
included in the printed reports. This approach to information disclosureusing two media, a printed report and a web site, has been adopted bymany other companies. For some companies that have shifted most of
their principal information to web sites, however, it has become difficult
to grasp the overall picture of their CSR efforts in the printed reportalone. Disclosing information through two media, as ZEON Corporation
has done, requires balancing the information presented in a printed
report and that released on a web site with due consideration for thedifferent roles these tools play as channels of communication withsociety. In addition, the future will require ways to respond to stakeholder
requests for CSR information. Looking ahead, I have high expectations
for ZEON Corporation in further intensifying its CSR management.

Hitoshi Okada
Senior Researcher, Institute of Environmental Management Accounting
Graduated in 1979 from the Division of Welding Engineering, theGraduate School of Engineering, Osaka University; graduated in
September 2006 from the Graduate School of Business Administration,
Kobe University, specializing in modern business administration (aprofessional graduate school for mid-career education); awarded PhD
in Business Administration, Graduate School of Business Administration,
Kobe University in March 2010; part-time lecturer, Osaka City University;
appointed by the Ministry of Economy, Trade and Industry to acommittee investigating how to encourage the more efficient use ofresources in supply chains.
While undertaking research into corporate misconduct, CSR,
compliance, business ethics, revival management and other fields, healso renders assistance in areas such as CSR management and theintroduction of material flow cost accounting.

Seiichi Okada
Executive Officer andDirector with Responsibility for CSR

On the occasion of our 60th anniversary in April 2010, ZEON established a ZEON CSR Policy and CSR Code of
Conduct to boldly declare its determination as a Group to be an enterprise that both benefits society and satisfies its
expectations.
The comments of Mr. Hitoshi Okada, senior researcher at the Institute of Environmental Management Accounting,indicate a sincere understanding of our approach, including the clarification of our CSR Policy. In addition, he statedwhat he would like to see in our continued evolution toward achieving more effective stakeholder communications,company-wide quality assurance activities, and care for the global environment, all in the interest of deepening our
CSR initiatives. We intend to steadfastly continue our efforts to meet these expectations.

25

Inquiry: ZEON Corporation CSR Team
Shin Marunouchi Center Building, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-8246, Japan
Tel: +81-3-3216-2349 Fax: +81-3-3216-0568 http://www.zeon.co.jp