The Mandom Group's Approach to CSR and Our Contributions to Achieving Sustainable Development of Society

Framework for a global society and Mandom Group CSR■Our Approach to CSR and CSR Guidelines

At the Sustainable Development Summit held on September

Division, a corporate department dedicated to this task.

In developing our approach to CSR, we referred to theDevelopment Goals (SDGs), International Code of Conduct,25, 2015, sustainable development goals (SDGs) were

In September 2015, we signed the UN Global Compact toMandom Group's corporate philosophy andand other frameworks for global society. Finally, ouradopted as shared targets to be met by 2030 and new

express our support for its ten principles in four areas ofphilosophy/policies in special areas that establish ourapproach to CSR was determined along with a course of

initiatives were launched across the whole of global society

activity, with the aim of allowing all Mandom Group

internal philosophy and values, and linked these to the ten

action regarding each of the seven core subjects of the ISO

aimed at sustainable development.

employees to share in the values of global society as a stepp r i n c i p l e s o f t h e U N G l o b a l Co m p a c t , S u s t a i n a b l e

26000 standard.

In the Mandom Group, one of the themes of our declaredt owa rd s u s t a i n a b l e d e ve l o p m e n t , a n d t o c re a t e n e w

initiatives from ﬁscal 2015 was similarly to strengthen our CSR

opportunities to strengthen relations with a diverse and wide

promotion system. In April 2015, we set up the CSR Promotion

range of stakeholders.

The Mandom Group declared its participation in the UN Global Compact in September 2015. We support the Ten Principles
relating to human rights, labor, environment, and anti-corruption as universal principles which should be highly valued byPrinciple 3： Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4： the elimination of all forms of forced and compulsory labour;
Principle 5： the effective abolition of child labour; andPrinciple 6： the elimination of discrimination in respect of employment and occupation.

EnvironmentPrinciple 7： Businesses should support a precautionary approach to environmental challenges;
Principle 8： undertake initiatives to promote greater environmental responsibility; andPrinciple 9： encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption Principle 10： Businesses should work against corruption in all its forms, including extortion and bribery.

Business activities
and corporate
values of theMandom Group

Expectations anddemands froma broad rangeof stakeholders

CSR
MaterialIssues

Fundamental CSR(Demands from society)

Respect/ContributionLabourEngagement/Dialogue
Respect/Contribution

Principle 2： make sure that they are not complicit in human rights abuses.

Global society initiatives and agreements
aimed at achieving sustainable development

Principle 1： Businesses should support and respect the protection of internationally proclaimed human rights; andStrategic CSR(Expectations for Creating Shared Value)(Examples: UNGC, SDGs, International Code ofConduct, Declaration of Human Rights, etc.)

Human Rights

Global society initiatives and agreements
aimed at achieving sustainable development

The Ten Principles of the UN Global Compact

Achieving sustainable development in society(Example: triple bottom line̶improving value based on all three aspects̶social, environmental and ﬁnancial)(Examples: UNGC, SDGs, International Code ofConduct, Declaration of Human Rights, etc.)

global corporations.

The Future We Want

The foundation for leading comfortable lives(Examples: ISO 26000 and resolution of social, environmental and economic issues)■Mandom Group CSR Promotion System
With the aim of strengthening our CSR promotion system, weGroup, reinforces CSR activities, and monitors the progress ofset up the CSR Promotion Committee chaired by theCSR material issues, liaising with relevant departments

President Executive Ofﬁcer. The committee ensures athrough ﬁve related committees and councils as well as otherconsistent approach to CSR promotion across the Mandombodies.

Decision-making
Supervision

CSR Core Subjects
Total Risk Management Committee

CSR Promotion Committee

Board of Directors

Code of Conduct Promotion Committee

Secretariat
CSR Promotion Division

10 M a n d o m K o h D o h R e p o r t 2 0 1 8

Organizational governanceFair operating practices
Human rights

Quality Assurance Committee

Consumer issuesEnvironment Promotion Committee

The environment(including CSR procurement)

Occupational Health and Safety Committee

Labor practices

Activities carried outby other related departments

Human rights
Community involvement anddevelopment ...etc.

External Site

External Site

UNGC: UN Global Compact

SDGs: Sustainable Development Goals●Global Compact Ofﬁcial Website●Global Compact Ofﬁcial Website > THE SDGS

Organizational GovernanceFair Operating Practices

We strive to maintain and further improve upon the fairness andtransparency of our management, in full compliance with all laws
and regulations, and will put forth every effort to ensure the safety
and beneﬁt of our stakeholders.

With the shared goal of sustainable social development,
we will build good relationships with our suppliers andpartners and fulﬁll our social responsibilities through ourbusiness activities.

Human Rights

Consumer Issues

We support and respect the protection of human rights as declaredby the international community and will do our best to continuously
monitor actions and educate people at every stage of our businessactivities to avoid complicity in any human rights violations.

We will utilize the feedback received from customers inour business activities to improve the beneﬁts of ourproducts and services from their standpoint and to ensure
safety.

Labor Practices

Community Involvement and Development

We consider our employees corporate assets that are vital to ourbusiness, and strive continuously to create safe, clean workplaces
that give employees the freedom to express themselves.

We will ascertain social issues from a global perspective
and take useful action to resolve those issues in pursuit ofsustainable social development and sustainable businessgrowth.

The Environment
We consider the impact that our business activities have on theenvironment and strive continuously to reduce that impact at every
stage from the development of products and services toprocurement, production, transportation, sales, and after-use
disposal, recycling, etc.

Mandom KohDoh Report 2018

11

The Mandom Group's Approach to CSR and Our Contributions to Achieving Sustainable Development of Society

CSR Material Issues and Mandom Group's Value Chain

The Relation between CSR Material Issues and Stakeholders

As indicated below, we have examined and clariﬁed thebusiness activities.

Mandom has been conducting dialogues with a wide range of"creating lifestyle value with consumers, for consumers," we will

relationship between the CSR Material Issues of the Mandom

Going forward, we will further advance and strengthen our

diverse stakeholders since FY2006 in order to take theircontinue or initiate promotion of CSR Material Issues, andGroup (Ver. 2: February 2017) and each stage of the Mandom

initiatives while developing an understanding of both positive

requests, hear their expectations, and reﬂect those in our

improvement/review of Kohdoh, while taking advantage ofGroup's business activities (value chain).

and negative impacts of the business activities of the Mandombusiness activities.

various opportunities enabling exchange of views and dialogue

CSR efforts are broadly divided into two types: fundamental

Group. We will search for the speciﬁc nature of "the future we

Stakeholders are diverse in terms of their expectations andw i t h a w i d e ra n ge o f p e o p l e s u c h a s e x p e r t s , re s e a rc h

CSR and strategic CSR/CSV. Fundamental CSR aims to eliminate

want"̶a future suited to the Mandom Group and based on ourdemands on corporations, and their prioritization of issues

institutions, and groups. We hope we can count on youror reduce negative impacts from our business activities, while

corporate philosophy.

pertaining to sustainability. These differences depend on theircooperation.

standpoint, principles, lifestyle, way of thinking, and other factors.

strategic CSR strives to maximize positive impacts from ourBased on one of the Mandom Group's KohDoh principles ofIssue No. (red)KohDoh for fundamental CSR, or to deal with threats to continuing our previous business activities,
or other issues to be overcome

Mandom Ofﬁcial Website
CSR Information●Stakeholder Dialogue

KohDoh for strategic CSR/CSV, or to create opportunities to improve future business activities, competitiveness,

Issue No. (blue) and company value, or further strengthen the corporate structure

Relation with Stakeholders(degree of interest, expectation, or demands)
Very high

KohDoh:"Thoughtful action"

Procurement of materials and ingredients(including materials for sales promotion)

Issue No.01
Organizational
Governance

In-house activities in areas such as production,
development, and resources

Internal and partners

Intermediary distribution,
retail outlets, etc.

Consumer use and disposal

Building a risk management system and continuous improvement

Promoting corporate philosophy/culture and compliance

Issue No.03

Employees

Businesspartners andcustomers

Community*(private sectororganizations,etc.)

Consumers

Regional
societies

Globalenvironment★

Build the Mandom Group's corporate philosophy from a global perspective and promote its understanding and spread
HumanRights

Suppliers(procurement,purchasing)Public bodies(government,regulatoryagencies, etc.)★

Build a group-wide risk management system
Issue No.02

Investors

Somewhathigh* Community includes educational and academic researchorganizations, NGOs/NPOs, etc.

★Items for Proactive Engagement

Distribution, marketing, sales, etc.

High

Continuous investment in education on human rights

Promote human rights education to build an inclusive society
Issue No.04

Improving health and safety in the workplace

The Most Important Material Issues : Elucidate the cause of the ﬁre at the plant in Indonesia, prevent any recurrence,and provide relief to the victims and bereaved families

LaborPractices

Issue No.05

Achieving employee satisfaction (ES) and diversity

Promote Decent Work practices, work-life balance and diversity
Issue No.06

Environmental considerations in products and services★

Take environmental measures for products and build an evaluation system
Issue No.07
TheEnvironment

Promoting measures toward a carbon-free society★

Carry out measures at all sites to reduce greenhouse gas emissions
Issue No.08

Protecting biodiversity★

Give environmental consideration for biodiversity throughout the product life cycle (includes sales bases and ofﬁces in Japan)
Issue No.09

Promoting a recycling-oriented society

Achieve and maintain zero emissions by fully recycling industrial waste (includes sales bases
Fair
OperatingPractices

Issue No.10

Building and implementing CSR procurement

Taking responsibility for quality and the health and safety of consumers

Issue No.12

Issue No.13
Community
InvolvementandDevelopment★

Effective administration and continuous improvement of a quality management system
Creating new shared values with consumers

Promote a product planning system that takes into consideration the communications system,
Detecting and contributing to new social paradigms

Contribute to international frameworks such as the UN Global Compact and Sustainable Development Goals (SDGs)
Issue No.14

Co-creating value with society

Promote the co-creation of value with research institutions and NGOs/NPOs

12 M a n d o m K o h D o h R e p o r t 2 0 1 8★
★

Build a CSR procurement system based on three aspects̶human rights, the environment, and fair business practices
Issue No.11

ConsumerIssuesand ofﬁces in Japan)

convenience and safety★
★
★
Mandom KohDoh Report 201813

The Relation (connection) between Our CSR Material Issues Approach and Progress Management,and Sustainable Development Goals (SDGs)

CSR Material Issues Approach and Progress Management

The Relation (connection) between CSR Material Issues and Sustainable Development Goals

Based on the Mandom Group's CSR approach and CSR guidelines, we have selected the Mandom Group CSR Material Issues (Ver. 2, 14

After announcing support for the 10 principles in 4 areas

examined the relation (connection) between our CSR materialthemes) in light of the following perspectives.

advocated by the UN Global Compact in September 2015, weissues and the Sustainable Development Goals (SDGs) which

selected our ﬁrst CSR material issues as the Mandom Group in

are the core of the 2030 Agenda for Sustainable Development

December 2015, and in FY2016 we began setting goals with aadopted in September 2015.

long-term perspective, while soliciting the views of people such

We believe that considering the relation (connection) between

as experts from outside the company and considering a

the framework of international society and our daily KohDoh“KohDoh” Plan for the future. In these and other ways, we havewill help each employee regard social/environmental issues

aimed to promote and energize systematic CSR activities.

from a global-scale perspective, promote understanding of theAs we started FY2017, we attempted to formulate still unset

framework of international society which aims for development

goals for the long-term perspective, while developing anof a sustainable society, raise awareness of and promote useful

overview and taking stock of the activities situation for eachaction to resolve issues, and aid in development of personnel

theme of our CSR material issues. At the same time we closely

who work hard to develop a sustainable society.

Perspectives for Selecting CSR Material Issues●Consistency with and stronger promotion of the Mandom Group's vision, corporate philosophy, strategies/
policies, and code of conduct, etc.
●Consistency with international standards of conduct, principles, and initiatives that should be supported/
respected by global corporations●The high level of expectations and requirements of the diverse, wide range of stakeholders we must engage with
●Responsibility for impact on the economy, society, and environment of our entire value chain●Consistency with the efforts of international society as a whole to achieve sustainable social development

Two Criteria for Promoting CSR Activities●Eliminating or reducing negative impacts on building a foundation for comfortable living (Fundamental CSR)
●Maximizing positive impacts for achieving sustainable social development (Strategic CSR/CSV)One of the Mandom Principles in the Mandom Group is "SocialIssues. At the same time, we will work hard to continuously

Responsibility and Sustainability." To abide by this principle, were - e x a m i n e o u r l o n g - t e r m go a l s a n d a c t i o n p l a n , a n d

must implement basic KohDoh in the form of CSR, properly

strengthen our progress management system.

incorporating expectations and requirements from outside thecompany into our business activities, while actively engaging inwide-ranging stakeholders.
We have started progress management based on long-termgoals and the KohDoh plan for the 14 themes of our CSR
Material Issues (Ver. 2), but the speciﬁc content and process ofthat management is still not sufﬁcient.
Regarding the 14 themes in our CSR Material Issues (Ver. 2), we
have started progress management based on long-term goals
and an action plan we established for the ﬁrst time, but thespeciﬁc content and processes are still not sufﬁcient.
We have consulted with experts in certain areas but have notadequately addressed the expectations and demands from a
broad range of our stakeholders. Furthermore, there are issues
in terms of pursuing our own goals and "backcasting" from ourDegree of expectations and demands from stakeholders

dialogue (discussion and exchange of views) with our diverse,

Pursuing initiatives asa new material issue［CSR Material issue No.13］
Detecting and contributing
to new social paradigms

Daily KohDohthoughts and actions

CSR
Material issues
To boost corporate value the sum total of thevaluations from stakeholders

Explaining theimportance ofinitiatives throughdialogues withstakeholders

ideal vision of the future, and this process is still ongoing.
Going forward, we plan to gather the opinions of more
stakeholders and experts to ﬁnd a higher level of CSR Material

Importance from each perspective of ﬁnancial, environmental
and social aspects within internal decisions

Progress Situation of CSR Material Issues of the Mandom Group and "KohDoh" Plan for the Future
Correct understanding of the latest
trends relating to CSR and sustainability
such as social issues from a global
perspective, and norms and frameworksof the international community

Formulation and review ofthe KohDoh plan through discussion
with related in-house departments

Active implementation of dialogues(discussion and exchange of views)
with diverse, wide-ranging stakeholders
such as outside experts and groups

Ascertaining speciﬁc KohDohand progress situation
Disclosure of information
through reporting

14 M a n d o m K o h D o h R e p o r t 2 0 1 8

Review by CSR Promotion Committee
Reexamination of themes andthe KohDoh plan
Decision-making by Board of Directors

The charts in the following pages describe the relation

have achieved a major reduction in annual overtime hours per(connection) between Sustainable Development Goals (SDGs)

person.

and CSR Material Issues of the Mandom Group, the progress

In terms of "Promoting measures toward a carbon-free society,"situation and overall assessment thus far, the situation

based on the Paris Agreement, we have not reached the level ofregarding setting of a KohDoh plan for the future and long-term

effort expected and required by the frameworks of the global

goals, and other related matters.

community and from all sides outside the company.

In particular, as efforts to develop a sustainable supply chain in

Going forward we will continue to deepen understanding of theFY2017, we started KohDoh with the aim of using certiﬁed palm

framework and latest trends of international society as a whole,oil and certiﬁed paper, issued Supplier CSR Guidelines (Ver. 2)

and expectations and requirements of corporations. At the same

to build up a CSR procurement system cognizant of humantime we will continually make improvements while actively

rights, labor, and the environment, and launched efforts withengaging in dialogue and exchanging views with all of our

suppliers using a CSR Procurement Self-Assessment Tool Set.

diverse, wide-ranging stakeholders, and work to promote CSR

As a material issue pertaining to labor practices, we are working

activities to attain long-term goals and realize co-creation of

to reduce overtime work, and as in the previous ﬁscal year, wevalue with society.

Mandom KohDoh Report 201815