Environmental andSocial Activities Report 2005

A gentle approach to our earth and its people“The ‘Hot’ Station in the Neighborhood”

LAWSON, INC.
Publisher
CSR Promotion Office
1-11-2 Osaki, Shinagawa-ku, Tokyo 141-8643, Japan
Tel: +81-3-5435-1350
Fax: +81-3-5759-6944
URL: http://www.lawson.co.jp/
Published September 2005
Next publication June 2006 (scheduled)© 1997–2005 LAWSON, INC. All rights reserved.

 This report is printed on forest-thinning paper (10% of materials from thinning domestic forests,
90% from recycled paper recovered in the marketplace).
 Printed using soybean-based inks approved by the American Soybean Association.

About LAWSONCompany Overview (As of February 28, 2005)
Introduction

Contents
1

Introduction

About LAWSON
2Company Overview

3

Human Relations

5

Discussion with the President

9

LAWSON’s Organization

People11

Customer Input

13

Franchise Owner Support Systems

15

Personnel Training, Workplace Environment

Products
17

Safe, Healthy and Tasty ProductsSociety21

Social Infrastructure

26

Social Contribution Activities

29“Every Store Can Help” Campaign, “Hot” Station Maps

Environment
31

Greening

34

Packaging

35

Stores37

Distribution

39

Waste Reduction

41

Headquarters Activities

43

Structure for Environmental Initiatives

Introduction
As LAWSON celebrates its 30th anniversary offounding, the Company is strengthening its
resolve to truly live up to its corporate philosophy by promoting “happiness and harmony inour community.” This philosophy incorporates asense of compassionate consideration for theenvironment—in the specific regions in which
we operate, as well as globally—and
LAWSON’s headquarters and stores are cooperating to undertake environmental preservationand social contribution activities on a national
scale.
This environmental report—our seventh—outlines our environmental activities in fiscal 2004,
including the saving of energy and resources, andreduction of waste. The report also describes
LAWSON’s social contribution activities,
including our Green Fund, as well as afforestation and regional environmental cleaning initiatives. Also, this report describes the full extent of
our new corporate philosophy from the viewpoint of our contributions to both society and theeconomy.
Through the cooperation of our customers andresidents of the regions in which we operate,
LAWSON is striving to become “The ‘Hot’
Station in the Neighborhood.” This report
describes exactly how.
S c o p e

This report concentrates specifically on LAWSON as aparent company, its member stores and some affiliated(Stores)

7,500

1

45

Third-Party Opinions

46

LAWSON’s History

Ministry of the Environment

Guidelines

Environmental Reporting Guidelines, fiscal 2003 edition

Installation, operation and management of jointly operated
ATMs in Lawson stores; deposits/withdrawals, transfers
and related financial services via ATMs (outsourced frompartner financial institutions) BestPractice Inc.
All activities related to conducting convenience store surveys, proposals for improving LAWSON stores

 NATURAL LAWSON, INC.
Establishment of the NATURAL LAWSON store format,
product planning and development, oversight of shop management

LAWSON Stores

7,625

7,821

8,077

5,000
0

2003/2

2004/2

2005/2

Total Net Sales (Consolidated)
1,500(Billions of yen)

1,294

1,288

1,000
0

2003/2

2004/2

2005/2

Operating Income (Consolidated)

250

250.3

245.6

254.3

200
0

2003/2

2004/2

2005/2

Recurring Profit (Consolidated)(Billions of yen)

30.7

36.6

Hokkaido Regional
Headquarters
Tohoku Regional
Headquarters

494

Nagano

42.3

20

138

Hiroshima

115

721

Gifu

84

Yamaguchi

109

Aomori123

Shizuoka

155

Tokushima

102

Iwate

159

Aichi

336

Kagawa95

Miyagi

159

Mie

72

Ehime

138

Akita

127

Toyama

95

Kochi

52

Kyushu Regional
68 Headquarters

1,329

1,250

35

Reference LAWSON ATM Networks, Inc.

Stores (Japan)
10,00050

Scheduled for June 2006

Operation of the official iLAWSON website for i-mode
users; provision of online merchandise, services and information through this site

Development of Lawson store chain in Shanghai, PRC

2005), but also includes some information from previous

Next Publication

 i-Convenience, Inc.

 Shanghai Hualian Lawson Co., Ltd.

(Billions of yen)fiscal years as well as activities for fiscal 2005.

Sales of tickets for concerts, movies, sporting and otherevents, mainly through Loppi multimedia terminals locatedinside Lawson stores

Issuance of LAWSON PASS credit cards to Lawson customers; provision of card-based services through Loppi
multimedia terminals and other channelsof business partners involved in distribution, rice product(the fiscal year from March 1, 2004, through February 28,

 LAWSON TICKET, Inc.

 LAWSON CS Card, Inc.

300

The primary period covered by this report is fiscal 2004

Primary Affiliates

English Company Name LAWSON, INC.
Address
Tokyo Headquarters:
East Tower, Gate City Osaki, 112, Osaki 1-chome, Shinagawa-ku
Tokyo 141-8643, Japan
Osaka Headquarters:
9-1, Toyotsu-cho, Suita-shi Osaka
564-0051, Japan
President and CEO Takeshi Niinami
Established April 15, 1975
Capital¥58,506,644,000
Employees 3,095
Scope of Operation Development of LAWSON
convenience store franchise chain
Store Revenues ¥1,329 billion
Stores
8,077 (in Japan)
Store Coverage All 47 Japanese prefectures, aswell as Shanghai, People’s
Republic of China (joint venture)companies, and includes some of the cooperative efforts
production and sales and waste management.
P e r i o d

Corporate Data

Yamagata

54

Ishikawa

Fukushima

99

Fukui

Kanto Regional
Headquarters

2,222

933

73

Fukuoka

292

Kinki Regional
Headquarters

1,774

Saga

57

Ibaraki

107

Shiga

114

Nagasaki83

Tochigi

99

Kyoto

178

Kumamoto

86

Gunma

65

Osaka

818

Oita

106

Saitama

303

Hyogo

458

Miyazaki

81

Chiba

276

Nara

95

Kagoshima

108

Tokyo

789

Wakayama

111

Okinawa

120

Kanagawa

Chugoku and Shikoku

475 Regional Headquarters

850 Nationwide
Total
65

Niigata108

Chubu Regional
Headquarters

1,083

Shimane60

Yamanashi

62

Okayama

114

TottoriShanghai, PRC

8,077

210

As of December 31, 2004
0

2003/2

2004/2

2005/22

About LAWSONHuman Relations

Corporate Philosophy
 Happiness and Harmony in Our Community

To match people’s lifestyles and contribute to their happiness, LAWSON constantly
puts itself in the positions of its customers, owners, crews, business partners, associates and shareholders when considering social and global environmental issues. Thismethod helps us conceive of new ways to share our enjoyment with others and takepart in activities that put smiles on their faces.
In 2005, LAWSON celebrates its 30th anniversary of establishment. In commemoration, we have updated our corporate philosophy and code of conduct. Our aim in
doing so is to more clearly outline our goals for contributing to society even more than
we have in the past.
Crews: part-time workers

LAWSON’s Role in

Code of Conduct
 Acting with utmost consideration for others Challenging with innovative ideas and actions
 Having a strong will to attain the objectives

Others’ Eyes

Society as a Whole

Employees“Help ensure safety and security by honoring alllaws and social norms,
creating an environment that matches
customers’ lifestyles
and contributing to theglobal environment.”“As we work toward shared goals, evaluate us
fairly as individuals and as teams. Help us
realize a social awareness and have pride in
our work.”

OwnersShareholders“Honor and respect our philosophies and val-

“Have foresight and demonstrate growth andstability, leading to appropriate levels of profit
and corporate social
contributions, so that byholding the Company’s
shares over the longterm we contribute tosociety indirectly andreach our own goals.”ues, so that we can operate stores confidently
and proudly. Contribute inways that match our own
needs so that we can succeed
and enjoy our achievements.”

3

Crews

Customers

Business Partners“Help us grow and develop. As we work with friends,
help us have a feeling of connectedness with customers through a jobthat we enjoy and canbe proud of and thatgives us a sense that
we are doing something worthwhile.”“Provide a lineup of products that meets our“Anticipate and meet our needs with a spirit

needs. Offer products and services that surpriseof challenge and innovation, help us growus in an enjoyable

together and turn ourenvironment so that we

joint dreams into real-

can enjoy our visits.”

ity.”

4

About LAWSON

Discussion with the President
community and meeting customers needs at storessessions1, and I plan to promote this phrase by help-

Glossary

is linked to the prosperity of their business.

ing transform employee awareness and raise their

1. CS session:

Sakai In May, we opened a new store on Yokozunasense of consideration.

provide an oppor-

Street in Edogawa, Sumida Ward, where the sumo

Niinami “Consideration” was a word that I reallytunity for individ-

wrestlers live. They commented that, “This wholewanted to incorporate into our code of conduct. I

ual employees toarea has livened up since the LAWSON store

don’t want to create a company that forgives all, as

opened.”long as we meet certain targets. That’s why I put

can live up to its

Niinami That’s great to hear.

“consideration” in the first phrase. “Consideration”

corporate philoso-

Yamada My business card has the words “The

implies a sense of charity toward others. In thephy by improving‘Hot’ Station in the Neighborhood” on it. I really

past, we have accomplished a lot through sales

like this phrase, because I think it sums up LAW-

efforts that follow our manual, but operating with aee satisfaction.

SON well. Now that we’ve changed the corporate

sense of consideration is more important than going

Session leaders

philosophy, will this phrase disappear?

by the book. Customers appreciate a sense of chari-owners, crews, business partners, employees andNiinami Even though our corporate philosophy

ty, and it should encourage them to come tocase studies totheir families—which we sometimes think of col-has changed, we won’t change this phrase. LAW-LAWSON more regularly.

help them under-

lectively as the “LAWSON family,” as well as

SON will remain “The ‘Hot’ Station in the

The word “consideration” also contains impor-

MC LAWSON revised its corporate philosophy inshareholders and society as a whole. “Harmony” is

Neighborhood” that promotes “Happiness andtant nuances for our employees to consider withcommemoration of its 30th anniversary of establish-

what we hope to achieve with all of these people,

Harmony in Our Community”

regard to the global environment and compliance.

customer’s view-

ment in June 2005. President Niinami, could you

ensuring their “happiness.” Of course these are fair-

Companies that aren’t endorsed by their societies

point and to con-explain for us the meaning behind this new corpo-

ly lofty ideals, but I think it is important to explain

rate philosophy?

what we aspire to be. We want people to feel that

Niinami Certainly. Our new corporate philosophy

their community has improved because there is a

is “Happiness and Harmony in Our Community.”In this phrase, “community” refers to the customers
who live in the areas where we operate, as well as

LAWSON exists thanks to the support of its customers, regional societies, its business
partners and a host of others. President Niinami and several employees recently held aroundtable discussion to talk about the Company and the sort of activities that match
its new corporate philosophy.

Happiness and Harmony in Our Community
The goals behind LAWSON’s new corporate philosophy and code of conduct
A “Behind-the-Scenes” Look at LAWSON’s
New Corporate Philosophy

President and CEO

Takeshi Niinami

Code of Conduct and Sense of Consideration

These sessions

deliberate ways inwhich LAWSON

customer satisfaction and employ-and participants
discuss various

stand the importance of seeing
things from thesider all the factors

don’t last long.

that contribute to

Nakao I’ve been in charge of ethics and compli-

an energetic work-

Niinami We have had many codes of conduct inance in the legal department for about three years.

ing environment.

LAWSON store nearby.

the past, but this time we have pared it down toDuring this period, awareness levels have certainly

Sakai For those of us who work directly on thethree easy-to-understand phrases: “acting withrisen. But I also am consulted by people who won-

scenes, keeping our owners happy is essential. As

utmost consideration for others,” “challenging with

der if there isn’t a better way to do things. In such

responsibility (CSR):

our business partners, we have to make sure that

innovative ideas and actions,” and “having a strong

cases, I stress the importance of understanding the

A company’s duty

these people are happy if we hope to achieve har-will to attain the objectives.” I would like you tospirit and aims that our rules are based on. In con-mony in the community.

think about these three phrases.

sultations, I’m often asked to consider our rules not

Niinami Exactly. And it is vital that store owners

Shimizu The phrase “acting with utmost consider-just from LAWSON’s perspective, but from theunderstand our corporate philosophy and code ofation for others” really had an impact on me. I’m instandpoint of our customers and business partners.

conduct. Successfully achieving harmony with the

charge of planning and conducting the CS

2. Corporate social

to the regions inwhich it operates.

Katsuaki Sakai

Nobuyuki Yamada

Shinichi Miyamoto

Tomika Shimizu

Aya Nakao

Izumi Hasegawa (MC)Stationed at the Kanto Regional
Headquarters, Katsuaki is responsible
for overall operations at 80 stores located in four of Tokyo’s wards—Edogawa,
Adachi, Sumida and Katsushika. He
places a high value on the solid respectthat he has earned from store supervisors, owners and managers alike.

Nobuyuki operates out of the Chubu
Regional Headquarters, where he oversees operations of 87 stores in Gifu
Prefecture. His goal? To hear thewords, “I’m really happy that LAWSON
came to Gifu.”

As Logistics Department Manager,
Shinichi constantly strives to distributeproducts to stores while minimizing theburden this places on the environment.
As father of a four-year-old, Shinichi
wants to help make LAWSON a company that his children and grandchildren
can be proud of.

Tomika is convinced that customer satisfaction starts with a smile on the faceof each employee. Working in humanresources, in charge of employee satisfaction, she says “valuable input comes
not from a top-down, but rather from abottom-up perspective.”

In her role overseeing ethics and compliance in the Company’s legal department, Aya has set up and operates an
employee consultation room. She also
conducts audits of external companies
and business partners that are involved
with LAWSON products and store construction.

At the CSR2 Promotion Office, Izumi is
involved with the Company’s environmental preservation and social contribution activities. Her current dilemma is
how to come up with an easy way toanswer her friends when they ask suchquestions as, “Okay, so what does
CSR really mean?”Note: This roundtable discussion was held in President Niinami’s reception room in theTokyo headquarters building, where dress is often “business casual.”
5

6About LAWSON

Niinami My understanding is that “compliant”

discuss our social responsibility, drawing a cross-flexibility. First, we would have to come up with

Niinami When many different types of peoplemeans “law-abiding,” and this duty is self-evident.

section of members from throughout the Company.

some other way to ensure business success, though.

gather, a variety of ideas arise. We should choose

In addition to laws, I have my own ethics that I fol-

Currently, there are four teams, which are consider-

Niinami It isn’t feasible for all stores to suddenly

the best of these ideas and prioritize their imple-

both engines andlow, and I believe that none of us should stray froming the topics of social contribution, environmental

stop operating around the clock. We need to givementation.

electric motors,

an ethical path. We must understand the true

management, hours of operation and waste reduc-the matter serious consideration first, come up withMC Mr. Yamada, your group was deliberating

this new type ofessence of problems before we act.

tion. Having taken part in these meetings, what are

viable alternatives and then make a decision.

waste reduction, right?

improved fuel effi-

Miyamoto I am involved in product deliveries,

your reactions?

Sakai I don’t think CSR necessarily has to be a

Yamada Recently, my role changed from oversee-

ciency and reduced

and I have been involved in a number of innova-

Sakai To be honest, when I first joined it seemed

difficult topic. I think of it in terms of my childing stores in Toyama Prefecture to Gifu Prefecture.

emissions of CO2

tions to our product delivery system. As we are dis-

to me that the atmosphere at these meetings was asaying some day, “You know, that company my

In Gifu, illegal dumping is a hotly debated issue.

cussing the topic of “consideration,” I would like tolong ways away from my usual on-the-scene envi-

father works at is a really good place.” Issues that

Waste processing is clearly a more problematic

4. NG vehicle:

add that some of our competitors are ahead of us onronment, where every yen in sales is vital.

commonly come up when discussing product offer-concept for the city of Nagoya, but maybe thePowered by natur-developing vehicles and reducing CO2 emissions. If

Niinami I can understand that reaction. But

ings with store owners are cigarette vending

greater outcry in Gifu comes from the fact that it is

we take into consideration the environmental

remember that although convenience stores havemachines and adult magazines. If LAWSON storesa mountainous region. At first, I thought it would

the environment

impact of our deliveries, we should consider shift-

become part of the social infrastructure, some peo-

did not offer these products, we might see more

be nearly impossible to reduce waste, but I havethan vehicles fueled

ing to hybrid vehicles or vehicles fueled by natural

ple evaluate us quite harshly on such things as the

support from mothers.

come to understand that this is a matter that wegas.4 The infrastructure to support this is lagging in

waste from boxed lunches, the noise and emissions

Shimizu We have to make certain we don’t justmust handle with some urgency.

based fuels, assome areas, so implementation is taking time. This

from delivery vehicles, and the extra energy used

pay lip service to “consideration.” As with cus-

Niinami Waste is an extremely important topic

they emit no ion

implementation will also raise costs.

for late-night operations. We need to realize thattomer satisfaction, if we lose our focus on changing

from a management perspective, as well. Right

Niinami There is no avoiding the fact that puttingthese are topics that the convenience store industry

in response to the environment the Company could

now, in our efforts to guarantee that the productsof nitrous oxides“consideration” into practice comes at a price. Thishas to address, as we play a contributing role ineventually cease to exist. In May, I joined theour customers buy are safe and tasty, we end up

and CO2.

is true in other fields as well. We must be innova-

society and reconfigure ourselves.

LAWSON Mount Fuji Forestation Project . It

throwing away some food. We have to consider

tive and take it as our challenge to educate our cus-

Nakao Thinking over the meeting topics helped

struck me that while monetary contributions arethis topic not just from the standpoint of wasting

Round-the-clock

tomers about the new value we provide. This willme realize the seriousness of our responsibilities.

important, getting personally involved is also

food, but also with a view to reducing costs andoperation, which

require investment, but if successful we will recov-

Niinami My public comments about 24-hour oper-

essential. Even though I got absolutely filthy plant-

recycling. We need more innovative ideas on how

er these costs down the road. As our environmental

ation5 and waste have provoked quite a response. I

ing trees, it was an exhilarating experience.

to minimize waste.

store industry, is aefforts progress, the entire LAWSON family will

am also quite concerned about the weight of

Nakao At a meeting I attended, we talked about

Yamada After attending the meetings, I believe

topic of important

become prouder, and justifiably so.

LAWSON’s corporate responsibility.

“contributing to society,” which got me started

that there is room to reduce waste, both at stores

Miyamoto I was very surprised when I heard thewondering how I could contribute to society

and at our headquarters. Some things that might beopment as an

discussion about hours of operation. But as I lis-through my work. At this stage, I don’t believe that“nice to have” are simply wasteful from an envi-

important improve-

tened to people deliberate the issue, I began toall our employees have this sort of attitude. We

ronmental perspective. For example, headquarters

MC The CSR Promotion Office began operations

think that maybe 24-hour operation isn’t an iron-need to think of a way to raise individual aware-

prints out sales promotion materials that it thinks

while others voicein March, and we began holding CSR meetings toclad requirement and that there may be room forness.

stores will find useful, but some of these are neverconcerns about

3

LAWSON’s Social Responsibilities

6

used. I’m sure that if each section examines theiractivities carefully, other examples will crop up.

Glossary
3. Hybrid vehicle:
By incorporating

vehicle featuresand other gases.

al gas, these vehicles are easier onby either propane
gas or petroleum-oxides and feature
reduced emissions

5. 24-hour operation:

is now standard in
the convenience

debate. Some people laud this devel-

ment in the national infrastructure,

the increased burden this places on
the environment.

Simply, we all need to look at our actions from anenvironmental perspective.

Fiscal 2005 marks

aged me to believe that LAWSON can continue tothe sixth time

become an even better company in the future. I

that LAWSON hascontributed to thehope that each of you will take leadership roles inreforestation ofdeveloping happiness and harmony in our commu-

the region aroundnity. I am convinced that our new corporate philos-

Mountspringboard, encouraging a level of commitment

7

Forestation Project:

Niinami Listening to this discussion has encour-

ophy and code of conduct will serve as a

CSR meetings provide a forum for employees to consider
convenience stores’ impact on society

6. LAWSON Mount Fuji

Fuji—aJapanese icon—that was destroyedby typhoons.

that will help us to act on the strength of our con-CS sessions are designed to encourage two-way communications
LAWSON Mount Fuji Forestation Project in operation for the sixth time infiscal 2005

victions.

8

About LAWSONLAWSON’s Organization
One way LAWSON seeks to contribute to business partners and citizens of the regionsin which it operates is by maintaining a strong and transparent management structure.
A robust corporate governance system is an essential part of this structure.

Corporate Governance and CSR
vailing laws and regulations, and that these businessactivities, including risk management measures, areappropriate.
 CSR Promotion Office
In March 2005, LAWSON established the CSR
Promotion Office, which reports directly to the president. Serving as a central repository of CSR information, this office comprises a cross-section of members
from the Company’s divisions, branches and headquarters and conducts meetings to deliberate important social matters. The CSR Promotion Office also
sets CSR strategies for the company.
General Meeting of Shareholders
Appointment/
dismissal

Appointment/
dismissal

Appointment/
dismissal

Board ofDirectors

Board ofCorporate
Auditors

CertifiedPublicAccountant

Audit

Account auditing

Appointment/
dismissal/supervision

Audit

ProposalCompensation
Committee

Proposal/report

Operational Organization

Comments

Ethics and Compliance Handbook
arranged by job function

9

In line with the promulgation of the Private
Information Protection Law in Japan, LAWSON
created a Private Information Protection Policy,
announced in March 2005. Based on this policy, we
will endeavor to continue strengthening our private
information protection measures.

LAWSON’s Private Information Protection Policy
1. Acquire, use, provide and store private
information in an appropriate manner
2. Employ private information safety measures
3. Conform with all laws and regulations
4. Create practical plans for ongoing improvementsin the protection of private information
5. Establish a private information consultation room

CFO
CRO in charge ofcorporate ethics
Risk Management Committee

Executive
Committee Meeting

Internal Audit
OfficeInternal audit

Executive Officers
Risk management,planning and execution of
CSR Promotion
Subsidiaries
Headquarters
Branches and Affiliatescompliance measures
OfficeCorporate Ethics and Compliance
LAWSON believes in an ongoing respect forcorporate ethics, laws and regulations, and therefore
strives continually to enhance the soundness andtransparency of its corporate management. We havedesignated a CRO in charge of corporate ethics, whooversees complianceactivities. In addition,
various individuals havebeen charged with theexecution of complianceactivities within theirrespective departments.
To raise Companywide
awareness of compliance
Newly revised LAWSON Code ofand help people who are

In line with the 2003 launch of LAWSON PASS
credit cards for LAWSON customers, we establishedthe Private Information Protection Committee tostrengthen our system for managing private
information on cardmembers and store customers.
On June 1, 2004, we commenced with theInformation Security Office project. This project was
designed to spend one year improving LAWSON’s
structure for managing and protecting private
information. To one person in each department, weassigned the responsibility of protecting private
information, and we designed study sessions to raise
the awareness level of all employees. We also use
self-checks and perform internal audits to confirm theeffectiveness of our information management system.
Throughout the Company, special cabinets have been
designated as secure repositories for private
information.

CEO

Legal Counsel

 Board of Directors, Executive Officer System
At the Ordinary General Meeting of Shareholders in
May 2005, a new Board of nine directors wasappointed, comprising three internal directors and six
external directors—again constituting a majority of
directors from outside LAWSON. We believe external participation on the Board presents us with awider range of insights and knowledge on issues ofcorporate management, and reinforces the Board’s
ability to arrive at fair decisions.
Since fiscal 2002, we have maintained an executive
officer system that separates the functions of management supervision and business execution. As of May
31, 2005, LAWSON had 23 executive directors.
 Audit Function
LAWSON maintains a corporate auditor system, andthree of the four members of the Board of Corporate
Auditors are from outside LAWSON. In principle, theBoard of Corporate Auditors meets once a month.
Corporate auditors verify management from the standpoint of legal status and the condition of internal controls and assess the execution of duties by directors.
LAWSON acknowledges the importance of CSR
and respect for laws and regulations, and has established the Internal Audit Office as an internal auditing
unit. Audits are performed continuously to ensure that
operations are being executed properly, based on pre-Protecting Personal Informationin charge of departments to better understanding thelegal issues pertaining to their work, we hold aCompanywide training session once a year,
augmented by small-group training sessions thatencourage two-way discussions and focus on specificjob areas.
In August 2004, we conducted an attitude survey of
4,300 LAWSON employees, as well as temporary
and part-time workers. After revising the text basedon awareness issues that became apparent through thissurvey, we updated the LAWSON Code of Ethics inDecember 2004. Furthermore, we revised ourCompliance Handbook into a Q&A format,
addressing legal questions by job function.

Risk Management
To prepare ourselves to respond swiftly toemergencies while maintaining our corporate ethics,
we have designated three major risk categories—
products and hygiene management, information
security, and disaster and theft—and established a risk
management structure. The Risk Management
Committee, which meets monthly, seeks to minimizerisks. This committee oversees an organization thatdefines potential risks, sets clear priorities andpreventive measures and strengthens ongoing risk
management activities. We have also established an
emergency risk response council, which responds toemergency situations by limiting the spread of risk andseeking to minimize damage. In the event that anincident does arise, we follow up this council’s
activities by tasking a risk audit and prevention
committee with analyzing the factors behind theoccurrence, preventing its recurrence and restoring any
credibility that the Company has lost as a result of theincident. In this manner, LAWSON endeavors to raise
its crisis management aptitude on an ongoing basis.
As is described in more detail on page 25 of thisreport, we have established a Disaster Response Office

Robbery simulation exercise

to provide community reconstruction support in theevent of a major natural disaster. To prevent crime, all
LAWSON stores are equipped with pigment-filled
anticrime color balls, headquarters personnel are
regularly dispatched to make late-night store rounds,
and we participate with local police departments inrobbery simulation exercises. We also maintain adocument entitled The Five Principles of Crime
Prevention, which is updated regularly.

10PeopleThree Challenge Practices
Ensuring courteous
service forour customers
SafetySecurity

Great products
Promotingcleanliness

HealthCustomer Feedback Structure

Tastiness

Ensuring
merchandise
assortments are
tailored toindividual stores

Convenient locations

LAWSON customer satisfaction

To raise customer satisfaction, we established thenecessary improvements. Positioning our customer

LAWSON Customer Center to respond to customer

center as a new mechanism for eliciting customer

comments 365 days a year. Personnel at this center

feedback has resulted in a steady increase in theselisten to customer opinions and requests, which fre-communications, rising from 18,328 in fiscal 2002

quently result in changes to the way LAWSON cre-to 20,948 in 2003 and 27,597 in 2005. In fiscal

ates stores, develops products and provides

2004, for example, we received 175 customer com-

services.

ments thanking us for our recent decision to create

Customer feedback is directed to the appropriate

separate toilets for men and women in new stores.

department, where the person receiving the call is

We collected these comments and published them

responsible for responding to the customer prompt-

as a booklet that we pass out inside the company toly and sincerely. Customer feedback is uploaded

provide helpful hints on responding to customer

onto the Company intranet, so that all employees

feedback.

can see how issues were handled and make any

Great products

Three challenge practices

Convenient locations
Reply to customer

P e o p l eStore, office

Supervisors, Depertments

Network-based“CS Express”

Customer Input
customers in specific areas, then provide products and services to meet these needs.
Accordingly, we energetically seek out customer opinions and foster a company culture that values customer satisfaction above all else.

LAWSON’s Views on Customer Satisfaction

11

Reporting at
divisional
head meetings

Head Office

We consider customer input an asset, because it allows us to understand the needs of

To ensure that customers can always enjoy visiting

LAWSON’s core views on customer satisfaction

LAWSON stores, we follow three challenge

can thus be summed up by our three challenge

practices: ensuring merchandise assortments arepractices, plus great product offerings and conve-

tailored to individual stores, promoting cleanliness

nient locations. We continuously aim to make cus-and ensuring courteous service for our customers.

tomers happy that there is a LAWSON store near

As we always seek to provide great products thatthem and to justify our reputation as “The ‘Hot’satisfy our customers, our product lineups focus on

Station in the Neighborhood.”

items that are safe, secure, healthy and tasty.

Individual store orientation: Rather than insisting on uniform

Finally, our stores are located in areas that maxi-

store management and product offerings, tailor each store tomize their convenience to customers.

LAWSONcustomer center

Customer Feedback Received in Fiscal 2004
Explanation of
improvements
made, etc.

Customer feedback

the specific demands of local customers.

C ol27,597

Other comments
and requests(store vicinities,
environment, etc.)(average of 2,300
comments per month)9%

Other inquiries(postal packaging
services)

Store locations

3%
Ads, commercials,
campaigns

4%

25%

31%

Store operations(customer service,product management,
etc.)

28%
Products and services(food products, tickets, cards)

u m n

From the Customer Center: Maintaining Empathy and Communicating Our Sense of Caring
The Customer Center naturally listens to feedback from customers, but at the sametime it is sometimes in the position of an objective third-party observer of LAWSON’s
activities. We asked Customer Center Manager Mika Suzuki and Supervisor Tomoko
Muraki to describe some of the customer comments and requests they encounter.
Some of our more frequent customer questions
involve products, such as “When will you begin
offering new product X?” or “I read about so-and-so
campaign in a magazine. Can you give me thedetails?” Also, as the number of stores continues toincrease the number of inquiries involving regional
campaigns keeps growing. We also hear such complaints as “Employee A at store B has a very bad attitude toward customers!” or “The floor of store C isfilthy!” We pass comments that relate to specificstores on to the supervisor in charge of that particular
store. The supervisor makes sure that the situation
improves, and specific departments play their own
roles in responding candidly to customers. I look forward to helping the Company maintain its straightforward and honest approach.

It makes us happy to see how customers’ opinions
result in product improvements and how that raises
LAWSON’s popularity. Here at the center, we plan tokeep focusing on maintaining empathy with customers,
communicating our sense of caring and responding totheir feedback quickly and appropriately.

Customer Center
ManagerMika Suzuki (right)
and Supervisor
Tomoko Muraki (left)

12PeopleFranchise Owner Support Systems
Cooperation with franchise owners—the people who actually operate LAWSON
stores—is essential to customer satisfaction. LAWSON has created a variety of support
systems to help franchise owners manage their stores, and ongoing interaction withowners helps us improve LAWSON products and services.

Communicating our Corporate Philosophy and Other Information

Communication Tools

The owners of stores in the LAWSON franchiseannounce head-Direct Communications with CEO

system* are independent businesspeople who arequarters policies,

This system

Supervisors are the bridge between franchise own-

responsible for their stores’ sales, purchasing, costhelping owners

allows fran-ers and headquarters, playing a vital store manage-

and crew management, and other aspects of store

understandchise owners,

ment support role. They provide owners with

operation. At the same time, headquarters provides

LAWSON’s cor-store managers

sales-related advice, based on information on new

a variety of backup support to keep owners dedicat-

porate philosophy.

and crews to

products, product trends and changes in the external

ed to store operations. For example, we educate

We also provide

address com-environment, sales and customer data analyses, andowners about LAWSON’s corporate philosophy,

ongoing support through such regular events as

ments

and

results of market surveys conducted in the store

corporate ethics, management policies, productbranch seminars and franchise owner training ses-ideas directly

vicinity. At the same time, advisors gather informa-

trends and share a host of other information to help

sions. This support ultimately helps raise customer

to LAWSON’s CEO. Receiving this feedback

tion from store owners about customers and local

them operate their stores in a way that will satisfy

satisfaction.

directly from the people who are working at theconditions. Supervisors relay this information to

local customers.

* Franchise system: A central headquarters provides sales
expertise, trademarks and other benefits to participating
stores, or franchises. Franchise stores pay a certain pricefor this information, which they use in their business.
Headquarters and franchise stores are separate entities
that operate under a contractual relationship.

front lines helps LAWSON improve store manage-

headquarters, which is useful in developing newment and upgrade products and services.

product and service offerings. Supervisors generally

LAWSON seminars, held twice a year at eight locations throughout Japan, provide franchise management
expertise, describe semi-annual product strategies andManagement policies explained at a
LAWSON seminar

In fiscal 2004, this system produced 1,152 pro-visit stores twice a week to offer advice on the sales

posals, and LAWSON’s CEO responded directly tofloor, including suggestions for product lineups

each one. Once sample proposal suggested thatgiven current weather forecasts.

LAWSON begin stocking cakes not only at

Owner and Crew Training Systems

Christmas, but also for children’s birthday parties.

Mystery Shoppers

LAWSON’s owner training system begins before athree-week course that includes hands-on training

As a result, LAWSON began offering birthday

In fiscal 2004, LAWSON launched a mystery shop-

store opens and continues even after the store is

between the times they sign a franchise contract andcakes, and the customer response was enthusiastic.

per system. Through this program, a mystery shop-

operational. This support helps owners operate theiropen a new store. In October 2004, we opened train-

stores smoothly

ing centers at each of our regional headquarters inand contributes

Hokkaido, Tohoku, Chubu, Kanto, Kinki,

to customer satis-

Chugoku/Shikoku and Kyushu. By making training

faction.

more accessible, we expect to help franchise owners

Owners typi-and crew leaders develop their skills even further.

cally undergo aFranchise Owner Welfare Association
LAWSON and its franchise owners are partners in

New franchise owners apply to join this associa-

the sense that they develop business together andtion when they sign their franchise contracts. The

share in business revenues. To promote this symbi-menu of benefits includes recreational center andotic relationship and ensure that owners work

sports club memberships, educational courses,

enthusiastically, we have created the Franchisehealth management programs and various forms of

Owner Welfare Association, which helps promote

financial assistance.

the health and security of franchise owners andtheir families as well as employees and store crews.
13Communicating with Supervisors

per—someone who is unknown to the crew of the
Direct Communications with the CEO in Fiscal 2004

store being checked—visits a store to objectively

Products, distribution

370

Services

175

Sales promotion

75

Systems

65

sions from their visits to supervisors, who feed thisFacilities, furnishings

94

information back to store owners. This system pro-Franchise contracts

78

vides an opportunity for owners and supervisors to

Store guidance229

determine potential

Others66

problems, set priori-

evaluate quality, service and cleanliness from a customer perspective. Mystery shoppers report impres-ties and raise stores’
LAWSON publishes Pal, a monthly

service levels. Sincemagazine containing management

establishing this sys-

information, and Store Creation Ideas,tem, we have seen

which covers management policies.

steady improvements
in customer service
Publications for franchise owners include
management information magazine Pal andStore Creation Ideas

and cleanliness.

14

PeoplePersonnel Training, Workplace Environment
Personnel training and an enthusiastic working environment are essential, as our people are the ones who ensure that customers are satisfied over the long term. LAWSON
maintains an atmosphere of openness, in which employees are free to voice their opinions, and seeks to help personnel realize their full potential. Our training, workplaceenvironment and internal communications are designed to help achieve these aims.

LAWSON University

Workplace Backup System

LAWSON is constantly on the lookout for new

training, store manager recruit training and assis-

ways to improve customer satisfaction. As long-tant supervisor recruit training. We have also tai-term personnel training is essential to this goal, welored courses, such as administrative personnel

have established an extensive set of training pro-recruit training, to meet specific job requirements.

grams, collectively “LAWSON University,” to foster personnel development in line with our
corporate philosophy and strategies.
LAWSON University fosters a high level of customer awareness, as well as a spirit of freedom andopenness. Courses include CS sessions, which areattended by all employees, and leader training,which aims to boost the leadership skills of administrative personnel. A typical course of study, fromthe time an employee joins LAWSON until they
become supervisor, would include store employee

Leader Training

At LAWSON, promotions and salary increases are
based solely on merit, and we allow no room fordiscrimination based on religion, personal faith,gender or place of birth. We encourage employees
to rise to their full potential, which we encouragethrough our training and evaluation systems. We
also provide several employee lifestyle support
systems, such as a policy of allowing reduced
working hours for employees requesting leave forchildcare, health care or nursing leave.
Our childbirth leave enables parents to take aleave of absence until a child reaches three years ofage, and we allow extended nursing and healthcare
leave periods of up to one year. Shorter termchildcare leave is available for parents to take careof older children who have not yet enteredelementary school. Under this system, parents canrequest part-time nursing leave for up to a year,
during which time they work only three hours perday. All of these systems are available for
employees who have worked at LAWSON for atleast one full year.

We regularly conduct employee satisfaction
surveys. Our most recent survey, in fiscal 2004,
indicated that most employees felt they were
working in a stimulating and rapidly changing
environment. Many responded that they felt that
their jobs were meaningful, and that they were
happy to be in a structured organization without
becoming passive. However, we discovered theneed for more communication between employees
and managers. We will continue to conduct such
surveys, which provide an essential level of
feedback on our personnel systems and workplaceenvironment.

Employee Awareness Survey Results
Purpose:• To determine employee satisfaction, allowing changes
in the corporate culture and increased employee
satisfaction• To enhance management skills of employees inadministrative positions• To serve as reference materials when evaluating
various policies
Surveyed: All employees, excluding directors
Response rate: 92.6% (fiscal 2004 result)

LAWSON University

Internal Communications
ES*, CS
promotion

LAWSON
Basic

Leaderdevelopment

Functional
skills training

SelfdevelopmentJobskills

Better store
management
skillsTraining on
customerawareness,creating an
worthwhile
workplace

Basic
LAWSON
employeeknowledge

Training
forpotential
leaders

Skillsrequired tofurther the
corporatephilosophy,
careerdevelopment

Menu ofchoices

Training inspecific
job skills

Training forstore opening
Crew leader
candidate training
Crew leader course
Store manager
training

Employeeawarenesssurveys
CS sessions

Fundamental
education on
the franchisebusiness andretail sales
skills*ES: Employee
satisfaction

Manager training
New employee
training (including
on-the-job
training methods)
Store manager
dispatcheetraining
Store employee
training
Store manager
recruit training

Correspondence
and day-releasecourses
Overseas andexternal
conferences/seminars
Annual magazine
subscriptions
Individualspecific trainingStoredevelopmenttraining
Merchandiser
training
IT training
Supervisor
training

Note: Courses are
currently being
offered at sevenlocations throughout
Japan.

Screening
Logic
Management
strategyMarketingAccounting
Case studies
Training session
with CEOGroup training
e-Learning

15

Job promotions, evaluation

Franchisetraining

Within our Companywide intranet, we have createdthe LAWSON Suggestion Forum as a place for
employees to exchange opinions and offer advice
on ways to improve products and services. These
comments and suggestions always receive a
response from the manager who is most appropriate, according to the topic. We have also set up theSupervisor Hotline on our intranet, allowing supervisors to ask questions and receive responses fromheadquarters staff. This hotline has helped smooth
store operations.
The LAWSON Suggestion Forum receives
approximately 20 messages per month, and traffic
on the Supervisor Hotline usually ranges between
70 and 80 messages. Message topics range fromproducts, sales promotion materials, distribution
and sales consumables to systems and disaster
response.
In answer to one supervisor’s suggestion, we
responded to regional differences in waste processing methods and standards by revising our systemof “clean boxes,” or trash containers. Formerly,

these were divided into three types—burnable trash(containers, magazines and paper waste), nonburnable trash (bottles and cans) and dedicated boxes
for PET bottles. Our “clean boxes” now comprise
receptacles for plastic waste, paper waste, glass
bottles and cans, and PET bottles. (Our “clean box”
system is explained in more detail in the Waste
Reduction section on page 39.)
From July 2005, we consolidated the LAWSON
Suggestion Forum and the Supervisor Hotline intoa single Employee Feedback forum. This unification should make communications more convenientand encourage further improvements in our corporate activities.

LAWSON “clean boxes”
16Products

we have imposed internal controls to minimize foodadditives.

 Health Focus

P r o d u c t s
Safe, Secure and Healthy Products
As a company that handles food products, LAWSON recognizes that it has an important responsibility to provide products that are safe, secure and healthy. Our thoroughquality control system assures that the products we deliver meet these criteria and ourcustomers’ needs.

LAWSON’s Concept of Safety, Security and Health Ensuring Product Safety and Security
We want customers to be able to purchase our products
without any concerns for product safety or health. For
this reason, we maintain stringent quality control over all
aspects of our business, ranging from research and development to production and sales. We also scrupulously
observe all environmental and hygiene regulations.

Through the LAWSON Natural Project, launched infiscal 2003 in the Kanto, Kinki and Tokai regions, wehave eliminated the use of artificial colorings andpreservatives from such products as boxed lunches,
rice balls, sushi, prepared bread, side dishes, salads,
prepared noodles and pasta. In fiscal 2004, we expanded the scale of this project to all of Japan. Furthermore,

Our Concept of Safety, Security and Health

LAWSON Natural Project Declaration
Offer
healthy
products

Offer safe andsecure products

17

Pay careful attention toingredients
Offer balanced, nutritious
menus
Create menus that include vegetables,
which are frequently overlooked
Eliminate preservatives andartificial colorings
Maintain proper levels of freshness,
temperature and hygiene

1. Original LAWSON items contain nopreservatives.
2. Original LAWSON items contain no
artificial colorings.
3. Original LAWSON items containreduced levels of food additives.

LAWSON foods are prepared with careful attention toingredients. Menus are balanced and nutritious, andwe make every effort to include appropriate amountsof vegetables, which are commonly overlooked. We
have also responded to increased customer awarenessof health issues by developing the NATURAL LAWSON brand of stores, which concentrates specificallyon products for people whose lifestyles focus on beauty and health. (Please refer to page 23 for more detailC olon the three types of LAWSON stores, including
NATURAL LAWSON.) Product Labeling
Product labeling laws require such information as product name, sell-by date, and a list of ingredients and any
allergens. LAWSON’s product labels go well beyond
these requirements to also include calorie values andnutritional information, so that increasingly health-conscious consumers can feel comfortable purchasing our
products. For prepared fast food* products that do notbear labels, with only few exceptions we publish
calorific values and allergen information on in-store
point-of-purchase materials and on the LAWSON website.
In addition to stringent checks by our own quality
control department, we double- and triple-check theaccuracy of product label information at the production stage andby using specialized external agencies.
* Fast food:
Products suchas our Kara-age
Kun fried chicken,
which is preparedin-storeu m nBusiness Partner Feedback System
Long-term, cooperative relationships with ourbusiness partners is one way we maintain thequality of the ingredients and products we deliver to clients. As our relationship with business
partners is symbiotic, we endeavor to work withthem as fairly and transparently as possible. We
employ business partner managers to maintainthese relationships, because we recognize thatbeing unfair or offering unprofitable work to ourbusiness partners might cause them to accord ourwork a lower priority. Our business partner managers are fully versed in such areas as the typesof transactions that might run afoul of AntiMonopoly Law—an area covered in ourCompliance Handbook—and we are working toraise this level of awareness with all employees.
We maintain our levels of trust by conducting
regular surveys of our relationships with business

partners, asking them to complete questionnaires
with such questions as whether they are receiving requests for excessive discounts or otherunfair demands. To ensure impartiality, we ask athird-party company to conduct such surveys. In
one recent example, in January 2005 we surveyed 660 business partners of our product distribution and store construction divisions.
The survey uncovered no major legal or ethical issues, but we were asked to improve our
product induction ratios and our sponsorship
activities. Such feedback helps our product anddistribution divisions make needed improvements, and enables us to raise Companywide
awareness of current issues and how they arebeing handled.

18Products

Developing Products (Original Products, including Rice and Side Dishes)
Ingredient Selection

Product Development

Quality Control at Production Facilities

Quality Control at Distribution Centers

A special team within our

To guarantee the safety of all

Maintaining correct temperatures is a vital

At distribution centers, we control

Stores keep products fresh by

from being sold to customers.

product development depart-

original LAWSON products,

part of controlling product quality. Our pro-product temperature from receipt

checking showcase temperatures

Products that have remained in ament selects ingredients

our R&D process requires

duction facilities keep close tabs on how longthrough to dispatch, so we can be cer-four times a day. Third-party

manufacturing facility or adverse

using strict standards toitems to pass through specif-

our products are heated and at what tempera-

tain that fresh products are delivered

inspectors also visit to make spot

environment for longer than usualensure products are safe,

ic tests at each stage fromtures, and how long products are frozen.

quickly, efficiently and according tohygiene checks, typically visitingreceive additional quality checks

secure and healthy. Spotingredients to finished prod-

Quality and temperature checks are per-established procedures. As well as dis-each store in Japan at least once aand other tests—typically twice achecks are conducted to

ucts. Testing documents areformed throughout the production process.

tribution centers, delivery trucks main-year.

month (but once a month in somemake sure that ingredientschecked when deciding

We maintain hygiene by ensuring that allmeet required standards.

whether to begin marketingparts of plants are clean, and we eliminate

a product, then actual pro-

Certain products, such as ricecases) in the period between theballs, boxed lunches and sidetime a product is offered for salegerms and other contaminants by disinfecting

dishes, have sell-by dates. Theseand when it is actually sold.

duction lines are inspected

all production equipment, as well as workers’

dates are checked three times afor safety.

hands and shoes.

day to prevent outdated products

tain quality by storing products atconstant temperatures.

Quality Control at
Production Facilities

Ingredient
Selection

Product Quality at Point of Sale

Quality Control atDistribution Centers

Product Quality at
Point of Sale

Temperature checks inside a distribution center

Checking temperatures in a store

Product
Development

Temperature checks during the baking stage

Post-cooling temperature checks

Metal detectors check for the presence of impurities

Quality Control Efforts
LAWSON employs the hazard analysis and critical

Our products are currently manufactured at 70 loca-

control point (HACCP) method, which analyzes

tions throughout Japan. When a product categoryprospective hazards at each step of a product’s manu-

comes on line at an existing plant or when a new plantfacturing process and creates control procedures tois built, our quality control personnel are dispatched totake due account of risk. As all processes are recorded,

confirm that quality levels are maintained and to check

HACCP clearly shows when each product was manu-

that the new line meets hygiene requirements.

factured and by whom, allowing any problems to be
traced back to their cause.

 Traceability
We maintain detailed records on all original LAWSON
products, indicating the source of ingredients, as well as
when and at what temperature they were prepared.
Similar information is recorded throughout the production, processing and distribution stages to maintain fulltraceability.** Traceability: The process of maintaining careful records of a
product and its ingredients throughout all stages, including production, processing and distribution19

 Maintaining Uniformity
Because we want each product of the same type to be
the same size, be prepared the same way, be placed inits container in the same manner and be generally uniform wherever in Japan it is manufactured, we began
trial implementation of uniformity standards in fiscal
2003. These standards include such guidelines as theamount of water used to cook a certain volume of rice,and the number of minutes for cooking. Based on our
trial implementation results, we will roll out these standards into other product categories.

20

Society Loppi Multimedia Terminals

and shinkin banks, as well as cashing functions offered

LAWSON stores are equippedby credit companies. As of February 2005, LAWSONwith Loppi multimedia terminals.

maintained tie-ups with 18 financial institutions and had

Among their many functions are

3,570 ATMs in place. We plan to expand this number.

sales of concert tickets, travel Launch of Quasi-Drug Sales

reservations, DVD reservations

Following the July 2004 liberalization of drug sales

and applications for certification

laws, on September 14 LAWSON stores began expand-tests. In August 2004, we added

ing the number of quasi-drugs they offer. These include

the Peekaboo share transaction

gargles, throat lozenges and other products to fight cold

service.

symptoms, as well as applications for stomach pains, Automated Teller Machines

intestinal remedies and contact lens care items.

LAWSON stores have ATMs that allow withdrawals
using cash cards issued by all city banks, regional banks

Easy-to-Use Facilities

S o c i e t ySocial Infrastructure Barrier-Free Stores

 Working Dogs Welcome

LAWSON is making more of its stores barrier-free to

Guide dogs and other dogs assisting individuals with

better accommodate seniors, pregnant women and otherdisabilities are freepeople with special needs. This conversion involves

to enter LAWSON

such things as making toilet doors larger, expanding

stores.

aisle widths, lowering counters, installing Braille blocks,

Through its nationwide chain of stores, LAWSON fulfills its role as “The ‘Hot’ Station inusing ramps at entries instead of steps and installing

the Neighborhood” by activities that increase the peace of mind of people in local areas.

automatic entry doors.

Home to a Host of Services

Making Regional Societies Safer

 Expanded Postal Services

 Extended Public Services

 Participation in the Safety Station Movement

In an unprecedented move in Japan’s convenience store
industry, in January 2003 LAWSON formed an alliancewith Japan Post, offering post boxes and using Loppi
terminals to handle the post office’s regional productdelivery services. We expanded this tie-up in November
2004 by introducing Yu-Pack postal packaging services
nationwide. Such services have proven extremely popular with shoppers who do notlive near a post office or who
find it difficult to visit the postal
office during standard businesshours. We are considering otherservices that we can offer toexpand this relationship evenfurther.

LAWSON stores accept payment for electricity, water,
gas and other utilities, as well as for telephone services,
catalog sales and other purchases. Since February 2004,
stores have also been accepting National Pension
System payments and, in some cases, National Health
Insurance, residents’ tax, automobile tax and other payments on behalf of municipalities. In the city ofIchikawa, Chiba Prefecture, and in Tokyo’s Kita Ward,
residents can receive a copy of their certificate of residency at LAWSON stores, after having phoned amunicipal office to ask for a copy to be delivered to aparticular store. In some areas of Gifu Prefecture, LAWSON stores accept book returns on behalf of the prefectural library system.

In recent years, the convenience store industry has beenaccused of contributing to crime and being a detriment
to the health and education of youth. LAWSON has
responded by becoming a voluntary member of theJapan Franchise Association’s Safety Station movement, formed under the aegis of various municipalities
and law enforcement agencies. This movement helps
increase regional safety and convenience by serving as aplace of shelter for women and children, providing carefor senior citizens and people with disabilities, and providing emergency communication in the event of disaster or robbery. As of October 2005, all LAWSON storesthroughout Japan will be participants in this program.
 Road Safety Station
At the request of the Ministry of Land, Infrastructure
and Transport, LAWSON stores along major national

highways in Japan’s Chugoku and Kanto regions began
serving as local information branches of national highway organizations, serving as “road safety stations” totransmit information in the event of road disasters. We
also help clean away debris and plants from walkway
areas near stores, making these areas safer and more
pleasant.

Participating stores
Tohoku region

139 stores

Kanto region

22 storesChubu region

56 stores

Chugoku region

87 stores

Shikoku region 130 stores
Safety Station advertisingposter21

22

Society

LAWSON’s Three Store Formats
Changes in the social structure, including a declin-

Housewives, seniors aged 50
and above, students

ing birth rate, higher average age of the populationand more women entering the work force, continue
Price focus

to have an impact on customer lifestyles and needs.

Freshvegetables

NearbyReasonably
pricedLargevariety

To match these emerging needs, we have introWide variety of
products targeting men
in their 20s and 30s

duced new store formats, adding NATURALLAWSON and STORE 100 to our regular LAW-

BrandsSON store format. We are flexible location-wise,Long
operatinghours

NearbyBeautysatisfaction,” STORE 100 uses simple pricing, withfrequent convenience stores.

many items marked ¥100 or ¥200, a focus on fresh

full 16 hours per day, from 7:00 a.m. to 11:00 p.m.,and they resemble a combined convenience store
and supermarket. These characteristics help the

Women in their 20s and 30s

Freshnesshousewives and senior citizens who do not usually

dard convenience stores. These stores are open atinue to extend the LAWSON brand, based on theexperience we gain with these new formats.

A naming play on the concept of “100% customer

produce and a larger variety of products than stan-New
products

Multifunction
Everyday Convenientfocus
serviceproducts

matching store formats to local needs. We will con-Price Focus: STORE 100
Handiness of aConvenience Store

Things fordaily life

stores appeal to a broader customer base, including(refrigerator
replacement)

Lifestyle focus High value
added

HealthMultifunction Focus: Regular LAWSON
Located in everyday neighborhoods and offering
most of the products and services that we use in ourdaily lives, the regular LAWSON store is open
around the clock. To improve their fit with local
communities, we are striving to increase the individuality of these stores with optimal product andservice offerings. Regular LAWSON stores are

NATURAL LAWSONHighlighting fresh salads, freshly baked bread, foodsupplements and the like, NATURAL LAWSON
offers a wide variety of products with a health andvalue-added orientation. Food products are carefully labeled with calorie, allergen and other healthinformation, and concentrate specifically on supporting the beauty and health lifestyle orientationsof its primarily female customers. Characteristic
NATURAL LAWSON products include all-naturalcleaning products, chopsticks made from Japanesecedar scraps and sandwich packaging that is printed
with environmentally friendly water-based inks.

now located in such diverse places as hospitals,
universities and subway stations. One store is located inside a post office and operated as a venturewith Japan Post, while others offer dine-in facilities.

New Stores

Store featuring products from the JA agricultural cooperative

In a hospital: LAWSON Kanto Chuo Hospital StoreIn a post office: Postal LAWSON Yoyogi StoreIn a University: Tokyo University Yasuda Kodo StoreFresh bread, through bakery tie-up
100% natural cleaningproducts

23

Wooden chopsticks made fromJapanese cedar
lumber scraps

Whole-grain rice balls, nutritionally balanced
boxed lunches featuring 20 items, especiallyeasy-to-forget vegetables

24

Society

Social Contribution Activities
As a participating member of regional communities, LAWSON endeavors to contributealongside other community members. We participate actively in various regionalsocial contribution activities, hand in hand with our customers.

Disaster Response
LAWSON stores can become major support lifelines in the event of natural disaster, by continuing
to operate as usual and supplying emergency provisions. LAWSON has concluded agreements withmunicipal and other organizations, offering to provide support during natural disasters.
On January 15, 2005, we became the first company in the convenience store industry to sign anagreement with the Tokyo Fire Department. In thisagreement, we pledged to supply emergency provisions to people in areas affected by major fires, aswell as to emergency dispatch crew at local Tokyo
Fire Department stations. We also agreed to use the
LAWSON distribution network to help transport
emergency provisions along existing and special
emergency routes.
On February 14, 2005, we signed an agreementwith the government of Ehime Prefecture pledging
LAWSON stores to supply provisions in the eventof a disaster. Three days later, on February 17, weconcluded an agreement with the Kansai Council toprovide assistance to people stranded and forced toreturn to their homes on foot in the event that a disaster rendered other modes of transport inoperable.
Altogether, we have concluded agreements with
Aichi Prefecture and eight other prefectural andmunicipal regions.
We have set clear codes of behavior for LAWSON employees to follow if a disaster occurs. We
conduct periodic disaster drills and review ouremergency response structures and manuals to confirm our level of preparedness. Through such activities, we intend to keep our stores operational inareas beset by disaster, and help stricken areas
recover as quickly as possible.

Sticker announcing adisaster return station

Clean Aid
The Clean Aid movement is founded on the con-employees, franchise owners, store managers,

cept of residents working with municipal, corporatecrews and their families all assist in these efforts.

and other entities to keep their communities, riverbanks and seashores clean. As a community member, LAWSON helps in these cleanup efforts bypicking up trash and evaluating results. LAWSON
Among the employees of our Kyushu branch and their families,
72 people participated in Fukuoka Love Earth Cleanup 2004 (left).
Employees of our Setagaya district office and their families clean
up trash along the Tama River, through Tamagawa Clean Aid
2004 (below).

Fire drill

Participation in Clean Aid Events in Fiscal 2004

Disaster Relief Funds

Clean Aid Project

LAWSON helps

SON collected disaster relief funds on seven occa-

provide for areas

sions, then passed them on to such organizations as thestricken by large-

Japan Red Cross

scale national dis-

Association.

asters by placing
special disaster fundcollection boxes alongside its LAWSON Green Fundboxes for defined periods. These funds are used to aid
Receiving a commendation award for the Niigata
Prefecture Flooding Disaster Relief Fund from the
Niigata Prefecture Disaster Response Office

the people affected by disasters. In fiscal 2004, LAW-

Date

Location

LAWSON
Participants participantsType of trash

Eleventh Fukuoka Love
Earth Cleanup 2004

June 13,
2004

Ohori Park,
Chuo-ku,
Fukuoka

1,410

72

Total of 206 bags of trash, comprising 157
bags of burnable trash, 16 bags of plastic,
19 bags of cans and bottles, 14 bags ofnonburnable trash; as well as larger objects

Tama River Clean Aid 2004

June 20,2004

Futagobashi
region, Setagayaku, Tokyo—

25

Total of 16 bags of trash, comprising
13 bags of nonburnable trash andthree bags of cans and bottles

Seventh Yodo River Clean
Aid 2004

June 27,
2004

Yodo Riverbed, Osaka—

112

Total of 59 bags of trash, including 25
bags of nonburnable trash, and one pallet

88 Clean Walk Shikoku, agroup road cleanup effort

August 8,
2004

Four areas in
ShikokuApproximately
1,000

224 people
from 98 storesNo figures available

Seventh Kyoto World City
Beautification Campaign

November 7,
2004

Kamo River
Trail, Kyoto

Approximately
3,500

48

No figures available

Disaster relief funds collected in fiscal 2004
Fund

PeriodAmount Collected

December 28, 2004_January 25, 2005
October 25_November 25, 2004

¥87,618,216

October 25_November 10, 2004
October 21_November 10, 2004

¥32,783,559¥2,810,412

Nationwide (7,814 stores)

August 9_31, 2004
July 20_August 20, 2004

¥29,571,019

Nationwide (5,665 stores outside the Kanto region)

July 20_August 20, 2004

¥14,280,654

Nationwide (8,006 stores)

Niigata Chuetsu Earthquake Relief Fund

Nationwide (7,911 stores)

Typhoon Number 23 Disaster Relief Fund

Nationwide, except Ehime Prefecture (7,778 stores)

Ehime Prefecture Typhoon Number 21 Disaster Relief Fund

Ehime Prefecture (133 stores)

Tokushima Prefecture Typhoon No. 10 Disaster Relief Fund

Chugoku/Shikoku region (815 stores)

Niigata Prefecture Flooding Disaster Relief Fund
Fukui Prefecture Flooding Disaster Relief Fund

25

Collection Area

Sumatra Earthquake Relief Fund

¥94,108,242¥674,907

Participating in Volunteer Community Activities
LAWSON also takes part in volunteer activities run
by local community groups. For example, 177stores* participate in the Adopt a Road Program thatwas established by the Osaka prefectural government
at the end of February 2003. This initiative helps
keep the roads and walkways in front of our stores

litter-free and attractive. In addition, 125 stores* takepart in the Bi-ing Kobe Citizen Movement that the
Kobe municipal government set up in August 2003 to
keep roads and walkways in Kobe clean.
* Number of participating stores as of April 200526

Society

Fund to Support the Japan Team at the Athens Paralympic Games

Notification poster

Environmental and Social Contributions through LAWSON PASS

The Paralympic

through sports. Between July 1 and 25, 2004,

LAWSON makes it easy for customers to partici-

In August, we arranged a tour of training facilities

Games, designed

LAWSON stores collected a total of ¥12,548,397

pate in social contribution activities through its

operated by the Japan Guide Dog Association, one

to help people

in funds to support the Japan team at the 2004

LAWSON PASS card. LAWSON PASS cardof the charities this program supports.

with special

Athens Paralympic Games. We provided thesemembers can use their cards to make purchases atchallenges makefunds to the relevant funding support office, which

any LAWSON store, and each purchase generates

the most of theirused them to defray the team’s costs as they pre-points. These points can be used in many ways, one

pared and took part in the games.

of which is to participate in social contribution

abilities, are highly regarded for the sense ofaccomplishment and emotional strength they

activities. Points are accumulated in 50-unit incre-

impart to all audiences. LAWSON sponsors thesements, and corresponding monetary amounts canactivities, as we believe in contributing to people

be donated to any of four organizations.
The Environmental Contribution Course option
was established when LAWSON PASS cards were

Organ Donor Cards

first issued in fiscal 2002. In fiscal 2004, its thirdyear of operation, this option generated ¥2,136,450.

Since January 1999, LAWSON stores have been dis-passed out a total oftributing organ donor cards and pamphlets based on an

6,511,270 cards toagreement with the Japan Organ Transplant Network.

customers.

By the end of February 2005, LAWSON stores had

Charities Supported

In fiscal 2004, we donated a total of ¥2,136,450 to these charities.
 Education Sponsorship in Asia

Supporting Cultural and Educational Activities First High School Yamato River Rafting and Cleanup Convention

 2004 Children’s Art Exhibition on Local Rice Paddies and Water

This conference participates in the rafting and river

We sponsored this 2004 exhibition to help support

cleanup activities of high school students in Osaka

nationwide education on environmental preserva-

Prefecture, helping to raise high school students’tion. Through this contest, we sought to help theawareness of river areas. As a conference sponsor,

nation’s children understand the beauty and value

LAWSON supplies awards for winning and partici-

of agricultural communities and fields by depicting

pating teams.

rice paddies, terraced fields, pond irrigation and

School opened in Bangladesh in
2004This NPO supports education
for poor children in India,
Bangladesh and
Nepal, encourages autonomy
for women andprovides an educational environment.

 Caring for Young Refugees

agricultural work.

© Masanori Kobayashi

Picture book (right) created with donated funds,
and a note of thanks (left) from the children

This NPO supports
the operation of carecenters for children
displacedfromCambodian villages
and cities. Creating
stable environments
for children aids theentire community.

 Japan Guide Dog Association
This association
trains guidedogs, helping
people withvisual challenges
participate more
actively in society.
August 2004 training center tour Bridge Asia Japan
This NPO provides support
for refugees
from Vietnam,
Myanmar and
Sri Lanka, as
well as disabled children
and youth, andClassroom equipped with sewing
has establishedmachines purchased through donations
a vocational
training facility
for women whose job prospects are limited.
Individuals are given the opportunity to gain skills
that can be used to earn a living.

Winner of the LAWSON Award

27

28

Society“Every Store Can Help” Campaign, “Hot” Station Maps
LAWSON is constantly thinking of new ways to contribute to the communities it serves. Through our“Every Store Can Help” Campaign, individual stores define their own ways of contributing to the communities they serve and know best. Many stores have created “Hot Station Maps” that feature local information.

“Every Store Can Help” Campaign
 Communicating with Kindergartners
Atsushi Suzuki, Manager of Hiroo Minami Store (Tokyo)

 Vocational System Speeds Integration into Society
Takefumi Tanaka, Owner of Himeji Otsu Store (Hyogo)

 Security Drills Lead to Crime Prevention
Reiji Ikehara, Owner of Goido Ekimae Store (Nara) Community Enjoys Group Christmas Party
Nara District Office

At Christmas time, thisIn May 2004, this store

Mr. Ikehara explains, “In addi-

The Nara district office participates in greening andstore has students from abecame a member of thetion to owning the Goido

other regional volunteer activities. LAWSON members

vocational system that pro-

Ekimae Store, I head thevides an opportunity for

Supermarket and Convenience

people with disabilities toStore Cooperative Council on

gain working experience,

Crime Prevention, within thethereby speeding theirTakada Police Department.

on display, they can have their photo taken alongside

return to society. For three hours a day, five days aAnother LAWSON store in our area, the Yamato Takada

Nara Prefecture Hand-in-Hand Education Council, atheir picture and receive the photo as a present. On

week, trainees help with such activities as processing

Imazato Store, which is owned by Masao Bessho, hosted

group of guardians of mentally challenged students.

Setsubun no Hi, crew members act as “evil” beings that

trash and cleaning the store, activities which help

security drills and first-aid training courses. These efforts

kindergartners drive away by throwing beans.

smooth their participation in society. There is a major

helped hold down crime, which was on the increase in ourneed for sucharea. I also

vocational

hope we canfacilities,

increase ourand this store

level of first-

may encour-aid training

age others toin the future.”

local kindergarten draw pictures, which it displays inthe store. When pupils
come to see their pictures

recently participated in a 2004 Christmas party at the
Donguri House brought together disabled and healthy
children in an enjoyable atmosphere. Separately, theoffice hosts crew study sessions with lecturers from theparticipate.

 Hands-on Training for Elementary School Students

 Seminars on Working in a Convenience Store

Tadayoshi Nakayama, Manager of Kodaira Gakuen Nishimachi Store (Tokyo)

Koichi Tsuchihashi, Owner of Toeicho Store (Aichi)

Each year, this store hosts a
day in which students ofKodaira Elementary School
Number 4, a public schoolin the town of Kodaira, canget hands-on working experience. This year, two
fourth-grade students wereintroduced to such store processes as stocking shelves,ordering and staffing the registers. When the students’families, teacher and school principal visited to check on
their progress, the students served them at the register.
This sort of experience helps children understand someof the workings of the societies around them.

This store participates inworkplace seminars for first-“Hot” Station Maps
 Fun, Impactful Maps Easy-to-Follow Map with Tourist Areas and LAWSON Storesyear students of the Sakurai

Yoichi Yokoyama, owner of Yawatahama Gotanda Store (Ehime)

Masako Kawamura, Manager of Towada Inayoshi Store (Aomori)Middle School, where stu-

“We are located at the junction of three streets, and“We are trying to make our store a little different, topeople often come by to ask directions. To help, ourmake people want to come by again. Our shop is oncrew drew a fun and impactful map that includes suchthe road to the city of Hachinohe and Lake Towada,

local attractions as Oji no Mori Park and the nearby

so our map includes Lake Towada and Mount

Tsutaya store.”

Hakkoda tourist destinations, plus nearby LAWSON

dents learn about a day’s
work as a convenience store
operator. To keep students from nodding off, Mr.
Tsuchihashi mixes his discussion with examples of store
uniforms being made from recycled PET bottles. This
store also hosts second-year students on “career day” fromstores. Next time we draw the map, we’ll include thenearby Higashiyama Middle School. Sometimes partici-

time to each tourist destination.”

pating students

areoffered jobs
as crew members once they
graduate fromschool.

29

30

Environment

Activities Supported by the Green Fund in Fiscal 2004
 Fiscal 2004 Green Fund Activities

Yamada, Toyama Prefecture
Spring planting of trees, June 13, 2004

Kamogawa, Okayama Prefecture
Eco Camp 2004 planting party, August 7
and 8, 2004

E n v i r o n m e n t

Higashi Shirakawa, Gifu Prefecture
Extensive forestation activities to create
an attractive mountain, river andseaside environment, October 16, 2004

Bihoro, Hokkaido Prefecture
Creating a forest along Uonashi River,May 16, 2004

LAWSON franchiseowners and employees
took part in 43 activities
supported by Green
Fund donations, suchas tree planting,thinning and trimming.

Ishikari, Hokkaido Prefecture
City dwellers participate in naturalreforestation project, September 12, 2004

Aomori, Aomori Prefecture
Project to preserve the natural greeneryof this region, September 19, 2004

Kamikatsu, Tokushima Prefecture
Enjoy the Forests and Mountains Weekend,
prefectural Mount Takamaru Sennen noMori activity program, September 4, 2004

Yanagawa, Fukushima PrefectureFirst Sekimoto Mount Odate Acorn Tree
Planting Festival, April 18, 2004

Oura, Kagoshima Prefecture
Pine forest shelter belt restoration andOura land reclamation project, January
29, 2005

Otaki, Saitama Prefecture
Yamabukisawa forest planting activity,
May 22, 2004

A Preference for GreenThe LAWSON Green Fund and the activities it supports are entering their 14th year. We are pleased to participate in projects
that will ensure that future generations can enjoy Japan’s forests, and thank all our supporters for their contributions.

LAWSON Green Fund
Forests are crucial to the natural environment because

activities. In fiscal 2004,of their role in absorbing and storing carbon dioxide,

Green Fund donations totaled

thereby slowing global warming. Trees are also an¥174,728,911, bringing total

environmental asset for a number of other reasons,donations since the start of thissuch as their role in preventing landslides. Rather thanprogram to ¥1.8 billion. This amount is enough torelying solely on the forestry industry, we believe that

protect forests over approximately 2,511 hectares ofprivate-sector forestation activities are essential toland.

preserving our forests. For this reason, LAWSONForestation Activities Supported by the Green Fundestablished the Green Fund in 1992. Donations
through this fund, as well as efforts from LAWSON
owners, crews and employees, support forestation

Customers

Nakatsue, Oita Prefecture
Forest volunteer activity, March 28,
2004

Mount Fuji Natural
Forest Creation
This NPO is working torestore the national forest

LAWSON Storesregion around Mount Fuji
by cultivating and planti-

Green Fund Contributions
2004¥174,728,911

2003¥196,119,367

2002¥176,689,507

2001¥191,940,092

2000¥154,317,950

LAWSON Headquarters

31

50

native to the region. Witha membership of 120,

National Land Afforestation Promotion Organization

this organization is one of
the groups that forms theGreen Fund

Forest Fund for Green and Water

Mount Fuji Green Fund
Forestation

Tree planting, thinning and trimming(Millions of yen)0ng seedlings that are

100

150

200

(some LAWSON stores and employees participate)

Project,

which oversees some of
LAWSON’s activities.

Takashima, Shiga Prefecture
Forest and bamboo grove volunteer
planting, April 17, 2004

Sangou, Nara Prefecture
Small Lily Road Project, November 13,
2004

Hachioji, Tokyo Prefecture
Fourth Mount Takao Forest Planting
Festival, April 11, 2004

C o l u m n
LAWSON Should Show Just What Rolein Nature the Green Fund Plays
Nami Nito, Chairman of Mount Fuji Natural Forest Creation
It is wonderful that LAWSON not only contributes funds to forestation projects around
Mount Fuji and other places, but also provides
opportunities for store owners and employees
to participate—even including these activities
as part of new employee training. Spending alittle time sweating in the outdoors is an
important way to really begin understanding
the importance of nature. I certainly hope that
LAWSON will continue these activities.

These funds, which
LAWSON pools together
as the Green Fund, aredonated by many people, and I believe it isimportant to communicate to these people
exactly how their donations are contributing to
the bounty of nature in a verifiable form.
People at both ends of the communication
process play important roles, and expanding
these activities will require us all to exchange
information even more than we do at present.

32

Environment

Packaging
LAWSON has extended its consideration for safety, security and health to its packaging of boxed lunches
and side dishes, and is working to reduce the burden it places on the environment. We plan to continue
increasing the amount of environmentally conscious packaging that we use in the future.

LAWSON Flower and Greenery Day
In 2001, symbolizing its participation in greening activities, LAWSON
began holdinga Flower andGreenery Day
on the third
Sunday of May.
On this day,
LAWSONholds a Flower
Event and a
Greening
Program.

For the LAWSON Flower Event, LAWSON
stores across Japan hand out free gifts of flower
seeds to encourage customers to add color to theirtowns and communities. In fiscal 2004, LAWSON
stores handed out sunflower seeds to 500,000 people, or approximately 60 people at each store.
The Greening Program involves tree planting
activities in areas around Mount Fuji damaged bytyphoons. As this planting project was completed
in fiscal 2004, from fiscal 2005 we will conduct
educational programs involving the trees that wereplanted.

Giving Careful Consideration to Packaging
LAWSON seeks to reduce levels of toxic emissions
by paying close attention to its packaging and production processes. Accordingly, we are improving
packaging materials and equipment.
Currently, we use such environmentally conscious materials as polypropylene and polyethylene

wraps.
Total packaging used

11,464,000 kg

Packaging made ofenvironmentallyconscious materials
Ratio of packaging madeof environmentallyconscious materials

6,149,000 kg
53.6%

to package boxed lunches and side dishes, and weare promoting the use of environmentally friendly
film printing and water-based inks. We are also
considering the use of plastics that are made fromsources other than fossil fuels—such as corn. To

Fiscal 2004 Recipient of Environment Minister’s Award and Green
Culture Prize
In November 2004, LAWSON received theEnvironment Minister’s Award from Japan’s
Ministry of the Environment for its Green Fund andtree planting activities. In addition, in April 2005 wewere awarded the Green Culture Prize—the first timea private-sector entity has ever received this honor.
These awards were presented thanks to the ongoing contributions that volunteers throughout Japan
have made to greening activities, which reduce
atmospheric levels of carbon dioxide and help stop
global warming. In particular, LAWSON franchiseowners, crews and employees have been vital to thesuccess of these programs.

decrease the volume of natural resources we use,
we are also reducing the weight of containers andReduced-Weight Shopping Bags
To reduce the vol-because we made them of thinner materials these bags

ume of resources

required 7.6% fewer resources, by weight.

we use for shopping
bags,

we

have

begun making them

Number of Bags Used Per Store(Thousands of bags)

300

of more lightweightmaterials. For cus-

Environment Minister’s Award ceremony

253,000

245,000

Fiscal 2003

Fiscal 2004

200

tomers who purchase only one or
two items, we offer

100

to simply stick on a purchase seal rather than use a plastic

Stores Built from Lumber

bag. Each October, we join local municipalities in theSociety is increasingly aware of the important role that
forests play in absorbing and storing carbon dioxide,
thereby helping to stop global warming. LAWSON is
working to help ill-tended artificial forests recover totheir natural splendor, increasing the amount of carbon
dioxide they absorb. Cutting down and recycling sometrees is a natural part of this progression. We haveused such lumber to construct two stores in Wakayama
Prefecture. As a joint project with a local company, thestores make abundant use of local lumber on walls andfloors, as well as store exteriors.

0

Environmentally Conscious Shopping Campaign, wherein
our sales promotion materials and other campaigns encourage customers to reduce their use of shopping bags.
In

Weight of Bags Used Per Store(Thousands of kilograms)

7,500

6,171,360

fiscal2004, we used
1,982,377,600

Please tell the clerk at the register
if you don’t need a plastic bag.

5,000

shopping bags,
up 3.6% from2,500

the previous
year. However,0
Fiscal 2003

33

5,702,879

Fiscal 2004

34

Environment

Store Efforts
Our efforts to use fewer resources include environmentally conscious store design.
Decreasing energy and natural resources used at each of our 8,077 stores in Japan
should substantially reduce overall usage.

Energy Consumption Efforts
 Reducing Electricity Consumption

 Testing of Integrated Cooling and Sensible Heat Exchange Ventilation Units*Sensible heat exchange: With this system, the only

By using an automated system to adjust in-store lighting,

Ventilation System

LAWSON stores use sensible heat exchange venti-

component of heat exchanged is the temperature part

we reduce the lighting to 1,000 lux from the start. By com-lation units*, which efficiently recycle the heat(sensible heat) and not the humid part (latent heat). In

parison, when fluorescent bulbs are first installed they gen-energy contained in exhaust air and return this heaterally emit 1,700 lux, then gradually dim to around 1,000

to the air supply that is taken into the store. Cycling

lux after one year of use. We determined that this level pro-

twice per hour, these units expel only the stale air,vided sufficient product lighting, so we have reduced initialwhile heat energy is returned to the store. This

output to this level to minimize electrical consumption.

process allows heat energy to be used more effi-

We have also begun employing automatic light sensor

ciently, eliminating some of the loss that occurs insystems on windows to determine the amount of natural

air conditioning. Sensible heat exchange ventilation

sunlight that is coming through, then adjusting artificial

Exterior unit for integrated cooling and ventilation systemlighting levels in areas around windows. The efficient use

units raise heat efficiency to more than 70%, reducing air conditioning costs by 20% compared withof natural sunlight has enabled us to reduce artificial

LAWSON has conducted experiments on a number of controls

standard units. As a result, air conditioning effec-

requirements by 30%. Furthermore, we have begun using

and systems involving the outside units for chilling andtiveness increases and energy is conserved. Heat isreflectors in our lighted store signage, which raises the effi-

refrigeration systems. In August 2004, we began testing a

not expelled to the store exterior, which reduces theciency of lighting and means that the same level of lighting

system that integrates the outside unit for both the cooling andenvironmental load on the store vicinity.

can be achieved with fewer fluorescent bulbs. Thisventilation systems.

improvement has decreased the energy used in store lighting by half.

side air is brought in without moisture, so that insidetemperatures can be maintained and at the same time
windows are prevented from misting.

 Other Systems
We use energy conserving remote control toprevent equipment from being left on indefinitely,and sensors are used to extinguish lights if toilets
are unoccupied. Toilet sinks are automatic toprevent water wastage, and water-jet toilets
minimize paper waste. Such systems are part of ouroverall effort to conserve energy by reducing ourresource usage.

On average, this system reduces the total amount of energythat a store uses for cooling products and providing ventilation
by 37.5%. This amounts to an annual energy savings of
between 5% and 7%, meaning that a store would generate 11
tonnes less carbon dioxide each year. We have begun installingthese units when we open new stores. We plan to use them in
40%, or 280, of the 700 stores opening in fiscal 2005, and 60%,
or 420, of the 700 new stores we are planning for fiscal 2006.
At existing stores, we are installing systems that will allow
control mechanisms for refrigerator/freezers, ventilation
systems and anti-condensation heaters to be incorporated

Reduced fluorescent lighting of store signs

winter, room temperature air is recirculated. Any out-

efficiently into a single unit. This move should also reduceenergy consumption.
Integrated Cooling and Ventilation System Overview
Booster
unit1

Outsideunit

Other Activities
 Stocking Environmentally Conscious

lifestyles. (Page 23 describes NATURAL LAW-

Products

SON stores and the three LAWSON store formats.)

LAWSON stocks such environmentally conscious
products as office supplies made of recycled plas-

 PET Bottles Reused as Uniforms

tics and items bearing the Eco Mark, which meet

Nationwide, LAWSON uniforms now bear the Eco

the Japan Environment Association’s definitions

Mark, as more than 50% of their materials are fromfor environmental consciousness. We also sell

recycled PET bottles. To improve the uniform

environmentally conscious products at our NAT-

recycle ratio, whenever possible we also reuse

URAL LAWSON stores, which cater specificallybuttons, fasteners and hangers from worn uniforms.

to people pursuing beauty- and health-conscious

Frozen showcase

Refrigerated showcase
2

Inside air conditioner
Automatic lighting level adjustment system

35

Notes:1. Chiller for refrigerated showcases

2. Flow of refrigerant gas

36

Environment

Distribution Efforts
LAWSON’s distribution network plays a vital role in the process of receiving items from its business partners and transporting products to stores throughout Japan. Stringent quality control throughout thisprocess enables us to deliver products that are safe, secure and healthy to end customers. Furthermore,
we are raising the efficiency of our distribution system to reduce the burden it places on the environment.

Average deliveries per day: 7.6 trucks

Promoting Joint Deliveries

Product Delivery System

By encouraging the practice of delivering to morecargo areas of delivery trucks into different zones tothan one store at a time, LAWSON is reducing theallow both types of product to be transported in thenumber of trucks that visit each store each day,same vehicle. Using this practice, as well as byzones. Tru-

which will minimize the environmental burden.

reworking our sundry item delivery schedules, hasoperate 118 distribution centers, which store prod-

cks equipp-

Chilled products include rice items, which are stored

enabled us to reduce average daily deliveries to 7.6

ucts at three temperatures. Confectioneries and sea-

ed to deliverat 20°C, and dairy products, desserts and other items

trucks per day. We plan to review our delivery sys-

sonings, for example, are stored at room

chilled pro-that are stored below 10°C. We have divided thetem to decrease this level even further.

temperature, whereas rice, dairy products, desserts

ducts have aand other items with short shelf lives are chilled.

thermome-

Frozen products are stored at –22°C.

ter mounted

All items are delivered by business partners to our

specifieddistribution centers before being divided for dis-temperaturepatch to individual stores. Throughout Japan, we

Thermometer near the driver’s seat

At distribution centers, we monitor such informa-near the driver’s seat for easy monitoring of cargotion as the date products are received and the time

temperatures. If product temperatures rise above aremaining in their shelf life. Distribution centers alsopredetermined level, the driver alerts the distribution

verify that items are correct before loading them onto

center.

Using Low-Pollution Vehicles
In 1997, LAWSON began employing delivery

other regions. LAWSON’s delivery trucks meet alltrucks powered by natural gas—an industry first—

municipal standards for vehicle emissions.

as these vehicles have lower emissions and are
therefore easier on the environment than standard

delivery trucks, which maintain products within theirvehicles. We began phasing in our next generationof low-polluting trucks with the March 2004 intro-

Roomtemperature

Two temperature zones
Product storageand management
Division by store
Ordering

DeliveryDistribution center

Business
partners

duction of a natural gas hybrid vehicle. As of theChilledend of fiscal 2004, we had 48 of these trucks in(Chilled and roomtemperature products)

Room temperature products

operation.
Store

Emissions standards are becoming increasingly
strict in the Tokyo metropolitan area, as well as inFrozen products

Refrigerated

Noise-Reduction Efforts
Travel Management System

37

LAWSON is mounting several efforts to reduce

oped and are shifting to an improved system using

noises, such as vehicle and trolley sounds, that canbuckles, which produce less noise upon release.

All LAWSO-

travel, time to destination and stopover intervals,

annoy customers and local residents. On trolleys,

Power gates mounted to the back of trucks are used

N products

resulting in real-time quality control. This system

we are replacing metal casters with resin units, andwhen lowering products out of the truck and raisingthat deliver

also allows monitoring of driver safety, including

are now using these trolleys to deliver all ourtrolleys back into position. We have successfully

chilled pro-such factors as over-acceleration, over-braking or

chilled and frozen products.

eliminated some motor noise, as well as reducing

ducts

excessive travel speed. In addition, the system

Lashing belts

the noise power gates make when they strike thelinked to achecks travel efficiency and whether trucks areare used to

ground by installing rubber stops and operating

travel ma-

being shut off while idling, as this helps reduce

secure room-them more slowly.

arenagement

global warming and atmospheric pollution, as wellsystem through a mobile communication network.

as conserving fuel. To enforce this practice, ourThis allows LAWSON headquarters and distribution centers to monitor cargo temperatures, rate of

temperature
products

Cargo trucks sometimes use metal exhaust pipesinthat are tuned to produce resonance. Instead, wedelivery truck

have adjusted the pipes on our cargo vehicles to betrucks are designed so that a driver cannot exit thecargo holds.

sound-reducing.

vehicle unless the ignition key has been removed.

We have devel-

38Environment

Waste Reduction Efforts
Stores emit a variety of waste, such as the cardboard used in product packaging, as
well as boxed lunches and other products that have passed their sell-by date. LAWSON seeks to minimize this waste and recycle whenever possible.

Computers used tocheck stock andplace orders

Fact-Finding Survey to Determine Data on Waste

Efforts to Reduce Food Waste

Each year, we conduct a fact-finding survey to determine the

LAWSON has designed its product cycle to

In Mie Prefecture, the Osaka prefectural cities ofprovide customers with products that are safe andSuita and Settsu, as well in as the cities ofon waste volumes and the success of recycling efforts. In fiscal

fresh. But at the same time, we are rapidly reducing

Kumamoto and Nagano, we cooperate with

2004, six LAWSON stores in the Hiroshima area collected all

food product waste to conform with the Foodbusiness partners who operate effective waste

Product Recycling Law, which went into effect inrecycling facilities. In these areas, our food product1991. We addressed this issue first at thewaste is converted into agricultural fertilizer. In

production stage, by improving process

December 2003, we established the Nationwide

management to reduce waste at this phase. At

Waste Recycling Promotion Study Group, with thestores, computers are used to track the history of

aim of expanding our network of partners in thiseach product, indicating how much of each productfield into all 47 prefectures. The group also

was sold on a certain day, given weather and otherdeliberates collection and processing methods, andlocal conditions. This information is taken intois studying new ways to recycle edible oils.

consideration when stores check their product

Food Product Recycling Law: This law, whose full name isstocks and place orders, helping to reduce foodthe Law Concerning the Reuse, etc., of Food Productproduct waste.

Recycling Resources, requires that food product recycling

volume of waste stores generate, which we use to compile data

Waste disposal
(kg)

60

48.8

50

of the waste each store generated during the four-day period
from October 20 through October 23, then sorted and weighed

42.1
40

that waste. The graph to the right shows the results.
According to this survey, on average each store generated

4.7

30

0.9
1.1
1.9

5.2

1.9
1.0
1.8

7.8

7.6

48.8 kg of waste per day. Products that had passed their sell-bydate and the cardboard used in product packaging constituted

15.2

20
14.7

the majority. Waste generated by stores amounted to 36.8 kg,
or 75.4% of the total, while trash deposited in the clean boxes

10
15.9

at the front of stores was 12.0 kg, or 24.6%.
We attribute the increase in the volumes generated at these

11.2

0

same stores from fiscal 2003 to fiscal 2004 to a variety of

Fiscal 2003

Fiscal 2004

factors. One factor was increased seasonal sales, while another

Mixed waste

Other paper(newspapers, magazines, etc.)

was the fact that weather patterns during the survey period(glass-faced items, fibers, cigarette butts, etc.)

Glass bottles

Cardboardcaused an increase in the amount of product that was disposed

Cans

Garbage

Plastic, PET bottles, etc.

(boxed lunches, side dishes,bakery items, etc.)

of because it had passed its sell-by date.

levels must reach at least 20% by fiscal 2006.

Note: October 2004 survey of six stores in Hiroshima

Food product recycling system
LAWSON

Products
past theirsell-by date

Business partners

Aging
MixingFermentation(three months
or more)Composting

Agricultural
fertilizer
andfarm use

Switchover to Clean Boxes
Note: This chart describes the processes that business partner Sanko Co., Ltd., uses to process waste.

LAWSON places trash cans (“clean boxes”) outside its

clean. In response to increasingly strict trash collection

shops, which helps keep surrounding neighborhoods

policies in some municipalities, in February 2005 webegan using new clean box categories at new stores,
and we are gradually replacing those at existing stores.

To reduce the amountof food product wastethat stores generate,
in fiscal 2005 webegan using garbage
disposals at two storeson a test basis. Basedon initial results, wehave decided to
expand their use inother stores.

The new boxes come in a set of four types—for paper,
plastics, glass bottles and cans, and PET bottles—andeach type is clearly marked near its opening. The newclean boxes are made of resin recycled from PET
bottles, and are designed for even better rigidity thanour previous trash cans.
Bacteria is mixed into garbage to cause fermentation anddecomposition into fertilizer.

39

40

Environment

Headquarters Activities
LAWSON also looks for ways to make its headquarters operations easier on the environment. Through paperless processes, green purchases and trash separation, headquarters is doing its part to contribute to environmental preservation and improve efficiency.

Paperless Operations

Environmental Education and Training

We aim to reduce the volume of photocopier paperand now this information can be checked by com-

used at headquarters and branch offices. In February

puter. We are now reviewing the forms we use, and2001, we converted our accounting system andplanning to shift these to from paper to an electronic

accounting ledgers at all branches to an electronic

format as well.

system. Besides reducing our use of paper, thismove resulted in better operating efficiency.
In the past, regular communications between
headquarters and stores generated reams of paper inthe form of product ledgers. In one very effective
move in September 2002, we uploaded this information onto our network—reducing paper use byapproximately 1,000 pages per store each month—

Green Purchasing
employ green purchasing, meaning that when pur-Green Purchasing Results
(%)

100

chasing consumable office items and OA equip75

ment they give preference to environmentallyconscious products. In fiscal 2004, green purchasing at our Tokyo headquarters and offices amounted to 70.3% of the total.

63.6

68.2

70.3

50

e-learning
Environmental advertisement(15-column newspaper ad)

Environmental accounting is the process of assessing a company’s costs associated with environmental protection activities, as well as the results ofthese actions and providing quantitative measuresof their effectiveness, either on a monetary or volume basis. We use this information when implementing future environmental management
activities.

Environmental Accounting Period: March 1, 2004, to February 28, 2005/Scope: LAWSON, INC. (parent), franchised stores and logistics service providers[Environmental Protection Costs]

0

Fiscal 2002

Fiscal 2003

Fiscal 2004

(Thousands of yen)Classification

Principal measures

ExpenseInvestment(1) Business area costs

Separating Trash, Recycling Forms
As well as sepa-

cardboard and mixed. All told, we divide trash into

rating waste into

17 categories. Each of these receptacles is clearlyburnableandlabeled, indicating waste separation standards, sepa-

nonburnableration methods and various areas for caution. Other

trash, our Tokyo

dance with the collection standards of their munici-

even subdivides

palities. At headquarters, we have begun dividing

paper into fiveout confidential office forms into a special collec-

categories:

tion box named “Mamoru, the recycler.” These

color, newsprint,Global environmental protection costs

Installation of energy-saving equipment, collection and disposal of chlorofluorocarbons

Resource recycling costs

General waste disposal and processing, food product waste recycling, etc.

forms are recycled in a special manner, as they must
conform with certain privacy and other regulations.

622,559

63,561

4,621

3,458,893(2) Upstream and downstream costs

Consignment fees for recyclable products in accordance with the Containers and Packaging Law

206,230(3) Management costs

Environmental management system operation, environmental education, notification of environmental information

26,549(4) Research and development costs

Waste Recycling Promotion Study Group, purchase of environmental reporting books, seminar participation costs

2,610(5) Community activity costs

Donations to the National Land Afforestation Promotion Organization and NPOs, etc.

23,857(6) Costs incurred to prevent environmental degradation
Total[Environmental Protection Results]

00627,180

3,781,700(Tonnes of carbon dioxide)

Economic Effects of Environmental Protection Measures

Detailsbranches and offices separate their waste in accor-

headquarters

white-backed,

41

ation. For supervisors and other staff, LAWSON
headquarters produces training magazines to shareenvironmental information and intelligence. We
share our environmental activities with as manyother people as possible by preparing environmental reports and listing information and advertisements on our corporate website.

Environmental Accounting

Our headquarters, branches and business offices

Mamoru, the recycler

LAWSON provides various types of environmental
education and internal programs to make sure thatall people at stores and headquarters understandenvironmental issues and the Company’s environmental activities and act in an environmentally
appropriate manner.
All employees are required to undergo generalenvironmental training once a year. Last year, webegan loaning personal computers to employees sothey could take this training as an e-learning*course, which raised the effectiveness of our environmental education. Additional training is provided to staff in positions that have a particular impact
on the environment, such as those involved in product development or store construction.
We schedule training so that owners can participate in these courses during the hours of store oper-

Indicator

Improvement in CO2 volume(1) Business area cost performance
Business resource investment performance

Reduction in electric power consumption

Reducing environmental load and waste generated by business activities

Confidential document recycling

17

Shopping bag weight reduction

694(2) Upstream and downstream cost performance

3,372

Reduction in emissions of substances with environmental

Business asset and service performance

impact (collection and destruction of chlorofluorocarbons)[Economic Effects of Environmental Protection Measures](Thousands of yen)

Effects

AmountReduction in energy use owing to energy conservation

148,385

35,700Notes: 1. As each franchised store operates as an independent business, a representative sample has been used
for calculation purposes.
2. As investment amount during the accounting period exceeds the total of investment costs, nodepreciation and amortization costs have been assessed.
3. The loss recorded is because economic benefits of environmental protection activities are computed interms of reductions measured relative to the previous fiscal year.
4. A simplified method of accounting for transportation by purpose of trip has been adopted.

42

Environment

Structure for Promoting Environmental Initiatives
LAWSON has created an environmental policy that outlines the ways in which it will reducethe burden it places on the environment. In line with this policy, we have also establishedactivity targets and created systems to move us steadily toward these objectives.
Audit renewal

Continuing to Improve our Environmental Management System

Environmental Targets and Results

LAWSON’s environmental policy calls for theoperation of stores that are friendly to people andthe environment. In line with these policy goals, wesought to implement an environmental management system effectively and efficiently.
Accordingly, in December 1998 LAWSON wasawarded ISO 14001* certification, the recognizedinternational standard for environmental management system quality, following an assessment by
the Japan Quality Assurance Organization.
Our environmental management system follows
a plan  do  check  action cycle of ongoing
improvement. To confirm that this cycle is func-

LAWSON carries out environmental protection
activities based on targets in five areas: saving
resources, saving energy, reducing harmful emissions, preventing noise pollution and environmental protection activities. The table below

Organization for Standardization (ISO), ISO 14001 confirms
ment system to promote ongoing improvements in environorganization must undergo assessment and registration.

Environmental Management System

Fundamental Philosophy

8,077 Stores throughout Japan

Internal Store
Environmental Auditors
Nationwide branches and offices
Reducing
HarmfulEmissionsEco-leadersInternal General
Environmental Auditors

Merchandizing & Logistics DivisionMarketing Division

Operations Integration OfficeStore Development Planning DivisionInternal Chief
Environmental Auditors

Next-Generation Business Development DivisionCorporate Planning OfficeFinance & Accounting Office

Management Services Office

Corporate Communications Office

Human Resources Office

CSR Promotion Office

General Affairs Office

Quality Control OfficeInformation Systems Office

Chief Information Officer’s Office(1) Provide information on safe and secure products andservices, and continuously pursue activities that reduce
our load on the environment.
(2) Based on environmental evaluations of our operations,products and services, set environmental goals and targets, strive to continuously improve them, and prevent
pollution.
(3) Respect all laws and regulations concerning environmental preservation activities and improve our environmental management system.
(4) Strive to reduce environmental emissions and pollutantsby conserving energy in our daily operations, conserving resources, minimizing waste and recycling.
(5) Promote regional greening and beautification by participating in and supporting the environmental preservationand social contribution initiatives of municipal bodies.
(6) Raise awareness of environment protection throughenvironmental education and communications.

SavingResources

SavingEnergy(Owners, store managers, crews)

Internal Audit & Correction Office

Policies

Area

that an organization has created an environmental managemental performance. Prior to receiving such certification, ansummarizes our environmental activities and targets for fiscal 2004. We have set additional environmental targets for fiscal 2005, and we will
endeavor to reach these targets through our environmental activities during the year.

Fiscal 2004 Environmental Targets* ISO 14001: A certification conferred by the International

Environmental Policy

LAWSON believes in operating stores that are friendly
to people and the environment. To ensure the health ofthe environment that we will pass on to future generations, we incorporate environmental consideration into
all our actions and seek to operate in a sustainable manner that is in harmony with our environment, and participate actively in social contribution activities.

43

tioning as designed, we conduct internal environmental audits twice a year at stores, and once a year
at headquarters and other offices. These audits are
performed according to a specialized checklist that
confirms existing practices and links to future environmental activities.

Preventing
Noise
Pollution
Environmental
Protection
Activities

Actions

Targets

Progress

Status

1. Implement green purchasing of officematerials used by headquarters andbusiness offices

Achieve green purchasing ratio of 70%
for items used at Tokyo headquarters
Achieve green purchasing ratio of 60%
for items used at all other offices

Items ordered:
Eco items:
Ratio:

2. Reduce usage of photocopier paper at
headquarters and business offices

Reduce average per-person usage by
3%, compared with 1999–2001 average

Sheets used in 2004:
Per-person average:
Increase:

25,197,698
815
8.1%

3. Employ green purchasing for system-related
consumables

Achieve 100% green purchasing ratio
for printer tonerTarget achievement:

100%

Reduce energy consumption
1. Reduce electricity consumption at head
office and all business offices

Reduce average per-person usage by
3%, compared with 1999–2001 average

Usage in 2004:
Per-person average:
Decrease:

7,980,022 kWh
233 kWh
9.3%

2. Increase use of voltage regulators in stores

Implement in 50% of stores

Total store usage:
Target achievement:

4,028 stores
99.7%

Not
achieved

3. Introduce automatic light sensor system at new storesInstall at all stores

Target achievement:

99.0%

Not
achieved

1. Use environmentally friendly materials incontainers and packaging for products developed
in-house (boxed lunches, side dishes, etc.)

Shift to use of transparent polypropylene and singlelayer expanded polypropylene sheets in containers
and packaging for products developed in-house

Target:Result:Target achievement:

60.0% (replaceNot
53.6% ment ratio) achieved
89.4%

2. Expand adoption of low-emission delivery
vehiclesReach a total of 67 low-emissiondelivery vehicles (including hybrid
vehicles)Implementation target:
Result:Achievement:

67 vehicles
Not
48 vehicles achieved
71.6%

3. When refurbishing store chillers and air
conditioners, recover and destroy all CFC
refrigerant gases

Recover and destroy 100% of CFC
refrigerant gases

Target achievement:

100%

4. Encourage vendors to use unwashed ricefor rice dishes

Examine and test the feasibility of using
unwashed rice in rice dishes made by vendors

Continuing to examine and test the feasibilityof introducing unwashed rice

1. Promote adoption of delivery vehicles with
low-noise power gates

Have power gates installed on 529
vehiclesTotal installation:
Target achievement:

523 vehicles
Notachieved
98.9%

2. Promote adoption of low-noise cargotrolleys

Have 76,000 low-noise cargo trolleys inoperation

Total operation:
Target achievement:

68,950 trolleys
90.7%

1. Continue collecting donations throughGreen Fund boxes

Continue collection at all stores

Total raised to date: ¥1,807,091,606
Money raised in fiscal 2004: ¥174,728,911

2. Work with the National Land Afforestation Promotion Organization
to contribute to greening activities throughout Japan

Carry out at 40 locations nationwide

Locations planted:
Target achievement:

Eco-leaders

44,27531,12070.3%

Achieved

Not
achieved
Achieved

Achieved

Achieved

43107.5%

Not
achieved

Achieved

Environmental Targets for Fiscal 2005
Companywide themes: prevent global warming (reduce CO2 emissions) and raise productivity

Environmental
Management Office

Area

Management Council

SavingResources
Saving EnergyReduce in-store use of electricity (use energy-efficient equipment) Improve fuel efficiency of store delivery vehicles Replace Company vehicles with more fuel efficient models

Reducing Harmful Emissions

Reduce food waste and promote recycling (conform to Food Product Recycling Law) Promote separation by category of in-store trash

Chief Environmental Officer
President & CEO
As of March 1, 2005

Actions
Reduce weight of materials used in packaging products developed in-house
Reduce total weight of materials used for sales promotion purposes
Reduce total weight of materials used for in-store sales
Promote use of domestically produced materials in publications
Use environmentally friendly packaging materials in products developed in-housePromote use of domestically produced materials in in-store sales materials
Promote green purchasing of consumable office products
Promote electronic reporting (shift to paperless)Measure and reduce usage of photocopier paper

44Third-Party Opinions

LAWSON’s History

LAWSON periodically elicits objective third-party opinions about its activities. We
value this input, which we use as we plan further developments and improvements.

1975

April
June

1976

April

Comments from Waseda University’s Environmental NPO—
Environment Rodrigues“LAWSON is taking a proactive approach toaddressing some of the issues the industry faces.
For example, President Niinami has raised the issueof 24-hour convenience store operation. Operatingaround the clock is convenient for consumers, butthese extra hours mean that extra energy is consumed to light shops, which raises their impact on
the environment. Stores along major thoroughfares
may have the demand to justify these extra hours ofoperation, but friends of mine who work part-timein convenience stores say that most stores are completely empty at night and there seems little reason
to keep them open. Whether they open or not, thestores require energy to maintain refrigerator andfreezer temperatures, so closing them may not
result in as great an energy savings as some people
think. Even so, there is value in small differencessuch as these.
“LAWSON focuses a lot on boxed lunches,
which usually are packaged with plastic films.
Maybe they could consider using recyclable con-tainers, such as the Hokkaru containers that myuniversity uses when they sell boxed lunches. The
use of shopping bags is another major issue. It may
be difficult for convenience stores to go the way ofsupermarkets in asking shoppers to bring their own
bags, but I hope the convenience store industry will
make some progress on this issue.
“In speaking with a number of companies, I havefound that often companies take part in a host ofenvironmental initiatives that have little to do with
their own core businesses. Rather than focusing onsuch things, I think it would be better for LAWSON and other companies to address environmental and social contribution initiatives that relate
directly to their main lines of business. One positive example is the introduction of NATURALLAWSON stores, whose main business focuses on
promoting a healthier lifestyle. I look forward toseeing more changes such as this. ”

n

C o n

c

l

u

s

1977

November

1978
1980

January

September
1981
July
1982
March
September
1986
1988

April
May
September
1989
March

1990

October
April
November

1991

February
September

1992

Januaryi

Waseda University’s Environmental NPO—
Environment Rodrigues
Established in 1997, this non-profit organization conducts
environmental assessments of student environmental awareness.
In addition, the NPO is working to expand the use of Hokkaru
recyclable boxed lunch containers, by working with amanufacturer of paper containers and the Waseda University
cooperative. At present, Hokkaru containers are used by theuniversity cooperative at a rate of 300_400 per day, and they wererecently employed at the Portugal pavilion of Expo 2005 Aichi,
Japan. The NPO, which has a membership of 90 students,
initiated a university-wide environmental business contest in 2004.

1993

April
August1994

February
March
May

1995

The phrase “corporate social
responsibility” has become
increasingly common in recent
years, and LAWSON has supported this trend by working
with franchise owners, customers, business partners andpeople in regional communities. Even so, I can nothonestly say that now we have completely fulfilled
all our social responsibilities. As we expand, we
have to continue giving back even more to our customers. Looking back, LAWSON has done many

1996

March
April
July

o n

things that make me proud. But looking forward
and thinking about our children’s and grandchildren’s generations, I realize that we still have muchto achieve.
There is a traditional saying among Japanesebusinesspeople that describes the ideal business
relationship as “good for the merchant, good forthe seller, good for all.” As we seek to operate in a
way that creates this win-win-win result, I look forward to hearing people say, “I am certainly gladthat LAWSON is around.”

June
OctoberJanuary

MarchYoshio Shinozaki, Senior Vice President and Director of CSR Promotion Office

45

April

SeptemberStanding in front ofrecycling bins that explain
how to properly dispose of
Hokkaru boxed lunch
containers are, from left:
Takehiro Oda (second-yearbusiness major), Yoshihiro
Michiura (second-yearengineering major) and
Keisuke Shimane (thirdyear student at the Schoolof Human Sciences).

I

October

June
September

1997

January
March
July
September

October
1998

February
March

Daiei Lawson Co., Ltd., establishedFirst store opens in Sakurazuka,
Toyonaka-shi, Osaka Increased joint deliveries ofchilled products
T.V.B Sun Chain Co., Ltd.,established.
Began 24-hour operation
The first LAWSON store Inaugurated system for joint
distribution of milk and otherdaily-use products
Created specialized plant to produce boxed lunches, and began supplying freshly made boxed lunches Established industry’s first distribution center
Installed first-generation computer system
 Installed Ayumi no Hako in all stores (formerly Sun Chain convenience store)
Business tie-up established between Lawson and Sun Chain
Began advance sales of movie tickets
Began accepting home delivery service orders
Began sales of oden (Japanese hotchpotch boiled in kelp-based
broth and seasoned with soy sauce)
Began sales of kara-age-kun fried chicken nuggets
Began employing new three-variety postal delivery system
Use of point-of-sale tracking system commenced
Merger with Sun Chain Corporation, creating Daiei Conveniencesystems Co., Ltd.
Began agency service to accept electrical and gas bill payments
 Started joint deliveries of processed foods, confectionary and sundrygoods Launched ECOLOGY LIFE products, designed to protect the naturalenvironment
Began employing the phrase “The ‘Hot’ Station in the
Neighborhood” in external communications
 Started using recycled paper for photocopying paper, internal publications and business cards
 Began using 80% recycled paper for store receipts
 Opened Station Park Waseda and five other experimental environment and welfare stores Started collecting donations for charities working to protect the
global environment
 Held 1st Tamagawa Clean Aid Campaign
 Joined volunteer rescue activities after earthquake occurred off the
Hokkaido coastAdded “Guide Dogs Welcome” stickers to all stores Began employing delivery trucks having two temperature settingsfor chilled foods
 Planted greenery using money from 1 st Lawson Green Fund at
Fukuoka Green Center, Fukuoka Prefecture
 Held 1st Fukuoka Love Earth Clean Up
 Held 1st Arakawa Clean Aid Campaign
 Collected donations for rescue work after Hanshin Awaji Earthquake Started joint deliveries offrozen products Developed Hot Station Map ascontribution to local communities
Began handling sales of stamps,
postcards and revenue stamps
Initiated Lawson Ticket sales
Opened first LAWSON store in
An example of our rescue work following
Shanghai, People’s Republic of
the Hanshin Awaji Earthquake
China
Company name changed to LAWSON, INC.
 Started using 50% recycled paper for thermal paper receipts
 Started recycling system for store garbage, thus beginning the complete recycling of bottles, cans, PET bottles and cardboard boxes in
the Tokyo metropolitan area
 Made donations for rescue work for a fuel-oil spillage in the Japan Sea
 Started “Every Store Can Help” Campaign to contribute to local
communities
Commenced operations in Okinawa, marking the Company’s extension of operations to all 47 Japanese prefectures
 Started an experiment to recycle food garbage as compost in
Kanagawa Prefecture Started using low-emission CNG delivery vehicles
 Started recycling handling materials, using plastic containers indeliveries
 Joined Tokyo Rule III—scheme to collect PET bottles in stores Started campaign to encourage delivery vehicle drivers to turn off
their engines when stationary
Implemented Loppi system at all stores
 Changed packaging materials for lunch boxes and side dishes topolyolefin, which does not emit toxic dioxins when incinerated
 Started using new novelty ice cream refrigeration cases with substitutenon-fluorocarbon refrigerants, meaning zero level of ozone damage

Environmental activities
Social contribution activities

1999

2000

2001

2002

2003

2004

2005

May  Opened experimental environmental action store, Katsushima 1chome, Tokyo
June  Held 1st Yodogawa Clean Aid Campaign
November  Started recovering and destroying fluorocarbons from cooling andair conditioning equipment when discarded
December  Received ISO 14001 certification, the environmental management
system standard
January  Started providing organ donor cards at all stores
April  Published Environmental and Social Activities Report (1998 edition)
 Created fund to support victims of an earthquake in northwestern
TurkeySeptember  Collected aid donations for victims of a large earthquake in Taiwan
October  Started support activities to raise money for Japan Overseas
Cooperation Volunteers dispatched by the Japan International
Cooperation Agency (fall period)
November  All stores stop providing chopsticks, spoons and forks with products
February  Opened 2nd environmental action store in Gunma Prefecture, NumataInterchange Store
June  Enacted Lawson Green Fund projects and “The LAWSON Mount Fuji
Forestation Project” in Fujinomiya City, Shizuoka Prefecture Guide dogs for the hearing impaired welcomed at all stores Started using vehicles fitted with low-noise power gates
July
Company’s shares listed on the first sections of the Tokyo andOsaka securities exchanges
 Began using low-noise running belts on delivery vehicles
 Converted all accounting receipts to electronic format
October  Started using electronic approval circulars on an experimental basis
March  Adopted new uniforms made from recycled PET bottles and materials
 Started using experimental micro gas turbine cogeneration system
in Minami Kase 4-chome Store, Kanagawa Prefecture
May  Established the LAWSON Flower and Greenery Day, May 18 (3rd
Sunday in May)
Started the LAWSON Flower Event—free flower seeds given to
store customers
Started the LAWSON Greening Program—planting trees near
Mount Fuji
July  Held 1st Kamogawa Clean Aid Campaign
Opened 1st NATURAL LAWSON at Jiyugaoka 2-chome, Meguro-ku,
Tokyo
September  Supported the temporary homecoming of Miyakejima residents after a
volcanic eruption on their island—LAWSON provided free food anddrink Collected aid donations for victims of the September 11 terrorist
attacks in the United States
January  Collected aid donations for the children of Afghanistan during the
Osaka International Ladies Marathon
June
Introduced the LAWSON PASS card
August  Participated in the Volunteer Support Program run by the Ministry ofLand, Infrastructure and Transport
November
Launched the Onigiriya rice ball series
January
Established post office counters at all stores Supported the Special Olympics, providing free food and drink
May
Began staged removal of artificial colorings and preservatives fromproducts sold in Tokyo and Osaka metropolitan regions
 Participated in Bi-ing Kobe Citizen Movement for the beautificationof the city of Kobe
AugustSigned an agreement with Wakayama Prefecture on local cooperation activities (contributing to local communities and using locally
produced products more extensively) Participated in Roadside Cleanup Stamp Rally run by Wakayama
Prefecture and Wakayama National Highway Office
December  Launched National Waste Recycling Promotion Study Group
July  Created fund to support the Japanese team at the Athens 2004
Paralympic Games Established fund to aid victims of flooding in Niigata and Fukui prefectures
AugustStarted the Peekaboo stock brokerage service
November  Created funds to help victims of the Chuetsu Earthquake in Niigata
Prefecture and Typhoon Number 23
 Received Environment Minister’s Award for LAWSON’s Green Fund
Launched Gohantei series of boxed lunches
December
Opened our 8000th store Created fund to support victims of the Sumatra earthquake
March
Publicized Privacy Policy
April  Received Green Culture Prize for the LAWSON Green FundMay
Opened our first store using
the STORE 100 format, in
Nerima Nukui 2-chome
June
Commemorated 30th anniversary of first LAWSON store
opening
August  Began 262nd LAWSON Green
Fund contribution to greening,in Tsuyama, Okayama
Receiving the Green Culture Prize
Prefecture46