CSR Report

2013© UNICEF
Myanmar / 2012

Love today,Love your life.

【Ideal Vision】

Maintain a Policy
sound
Editorial

management system
Lion views its CSR Report as an important toolthatis continuously
allowing the Company to communicate its CSR
trustedinitiatives by
andsociety
draw on stakeholder opinions

CSR Communication Tools

while furthering corporate activities.
The CSR Report 2013 was prepared taking into
account the following points.
・Since 2011, CSR activities have been systematizedin accordance with ISO 26000, an international
standard concerning social responsibility. The CSR
Report is also complied following trend.
Since the 2013 version, this report contains major
CSR issues specified on the basis of the seven core
subject of ISO 26000, and medium-term objectives
and major indicators for each issue.
・Third-party reviews by outside experts have been
included to provide an objective assessment.

CSR Report
Reference guidelines
・The Environmental Reporting Guidelines (2012) of theJapanese Ministry of the Environment
・The Sustainability Reporting Guidelines (2006) of the
Global Reporting Initiative・ ISO26000: Guidance on social responsibility issued by
Japanese Standards Association

The purpose of the CSR Report is to communicate what
corporate social responsibility (CSR) means to Lion andto outline Lion’s CSR activities. It provides an overview
of the Lion’s approach to CSR and describes activities
carried out during 2012. Contents covered in greater
detail on the Company website are marked with URL .

Coverage
Lion Corporation, Lion Chemical Co., Ltd.,
Lion Business Service Co., Ltd., Lion Hygiene Co., Ltd.,
Lion Trading Co., Ltd., Ipposha Oil Industries Co., Ltd.,
Lion Packaging Co., Ltd., Lion Engineering Co., Ltd.,
Lion Field Marketing Co., Ltd., Lion Logistics Service Co., Ltd.,
Lion Cordial Support Co., Ltd., Issua Co., Ltd.,
Lion Dental Products Co., Ltd., Lion Akzo Co., Ltd.
(Regarding the environmental data, overseas groupcompanies are included in addition to the above
domestic companies.)

Website (CSR Section)

Period Covered
January 1 to December 31, 2012
(Some part of the activities includes that of 2013.)

The aim of the CSR section of Lion’s website is toensure timely and appropriate disclosure of information
required by customers, experts and all otherstakeholders. As well as providing more detail than the
CSR Report, the website is also designed for greater
visual appeal.
URL

http://www.lion.co.jp/ja/csr/

CONTENTS
Contents…………………………………………… 01
Corporate Data………………………………… 02
Message from the Management…………… 04
Special Features: Eco Vision 2020 …………… 06

Lion and CSR………………… 10
Basic Approach / Foundation for Business / Business
Activities / Promotion of CSR Activities / Value Chains andImportant Issues /Objectives and Performance of CSR

Organizational Governance…… 18
Basic Approach / Corporate Governance System / Risk
Management / Establishment of Internal Control Systems /Promoting Compliance

Human Rights……………… 20
Basic Approach / Frameworks to Ensure Respect for Human
Rights / Contact for Consultation and Internal Reporting

Eco Leaflet (Japanese only)
The compact Eco Leaflet explains Lion’s environmental
activities to customers and all other stakeholders
in a straightforward manner using diagrams andillustrations.
URL

http://www.lion.co.jp/ja/csr/report/pdf/eb.pdf

Labor Practices……………… 21
Basic Approach / Human Resource Development / Human
Resource Diversity / Promoting Work-Life Balance / Employee
Health Management / Safety and Disaster Prevention
Initiatives

The Environment…………… 26
Basic Approach / Environmental Guidelines / Environmental
Management Structure / Environmental Management
System / Legal Compliance / Overview of Environmental
Impact of Lion’s Business Activities / Environmental
Accounting / Eco-efficiency / Environmental Communication/ Pollution Prevention / Sustainable Use of Resources /Climate Change Mitigation and Adaptation / Biodiversity
Conservation

Fair Operating Practices……… 34
Basic Approach / Frameworks to Ensure Fairness of Business/
Initiatives for Value Chains / Respect for Intellectual Property Rights

Consumer Issues …………… 36

Lion 120 Eco Stories (Japanese only)
The Company’s environmental conservation activities in
addition to the manufacture of products conscious of
impacts on water and the environment, ranges widely fromacademic and research support to promoting environmental
activities in collaboration with our customers. The
Company compiled our environmental activities and useful
information for our customers into a booklet.
URL

http://www.lion.co.jp/ja/csr/report/pdf/er.pdf

Basic Approach / Appropriate Information Provision /Approach to Safety and Reliability / Enhancing Information
Provision to Customers / Information Security/ Responding
to VOC (Voice of Customer) / Considering the Environment
from a Product-Oriented Perspective / Environmental
Considerations in Product Composition Development /“3Rs” for Reducing Containers and Packaging

Community Involvement and ……
42
Development
Basic Approach / Activities of Lion Foundation for Dental
Health / Educational Activities for Hand Washing and Gargling/ Conservation Work / Supportive Activities in the Great East
Japan Earthquake Disaster Areas /Community Activities

Third-Party Review………………………………
Lion’s Responses / Editorial Note……………

46
47

CSR Report 2013 01

【Ideal Vision】

Maintain a soundCorporate
Data● Trend of Earnings

management
systemCorporate Name Lion Corporation
Address is continuously
3-7, Honjo 1-chome, Sumida-ku, Tokyo 130that
8644, Japan
trustedbyOctobersocietyFoundation30, 1891

Net Sales(million yen)
400,000
350,000¥34,433.72 million (as of December 31, 2012)

President

Itsuo Hama

250,000

Employees

Consolidated: 6,006
Non-consolidated: 2,442 (as of December 31, 2012)

200,000

Net Sales

Consolidated: \335,100 million
Non-consolidated: \254,300 million (as ofDecember 2012)
Chiba Plant (Ichihara City), Odawara Plant(Odawara City), Osaka Plant (Sakai City),
Akashi Plant (Akashi City)

Research
Facilities

Hirai (Edogawa-ku), Honjo (Sumida-ku), Odawara(Odawara City)

Sales Offices

Sapporo, Sendai, Tokyo, Nagoya, Osaka, Fukuoka

331,100

327,500

2009

2010

2011

335,171

150,000
100,000
50,0000

20082012 (year)

Operating Income(million yen)
12,00010,036

10,0008,000● Net Sales Breakdown by Business

321,947

300,000

CapitalPlants338,236

10,50011,169

8,277
7,213

6,000

Consumer Products Business¥266.04 billion

Oral Care Products¥52.91 billion

Beauty Care Products¥20.37 billion

Pharmaceutical Products¥37.19 billion

Fabric Care Products¥80.59 billion

Living Care Products¥21.85 billion

Other Business¥53.10 billion

Industrial Products Business¥49.78 billion

Overseas Business¥59.17 billion

Others¥29.79 billion

Adjustment ※▲ ¥69.62 billion

Consolidated Net Sales¥335.17 billion

4,000
2,000
0

2008

2009

2010

2011

2012 (year)

Ordinary Income(million yen)
14,00012,00011,145

11,795

12,183

10,000
8,000

8,564
7,603

6,000
4,000

※ Intra-segment and inter-segment sales

2,000● Location of Overseas Group Companies

0

2008

2009

2010

2011

2012(year)

4,077

4,235

2011

2012 (year)

Net Income
South Korea
CJ Lion Corporation(million yen)
7,000

China

Thailand
Lion
Corporation(Thailand) Ltd.

Malaysia
Southern
Lion Sdn. Bhd.

Malaysia
Lion Eco
Chemicals Sdn. Bhd.

Indonesia
P.T. Lion Wings

02 CSR Report 2013

Lion Daily Necessities
Chemicals (Qingdao) Co., Ltd.

6,000

Taiwan

5,000

6,041
5,465

Lion Chemical Industry (Taiwan) Co., Ltd.

Hong Kong
Lion Corporation (Hong Kong) Ltd.

Philippines
Peerless Lion Corporation

Singapore
Lion Corporation (Singapore) Pte. Ltd.

4,000
3,000

3,040

2,000
1,000
0

2008

2009

2010

Pharmaceutical Products
Fabric Care Products
Chemical Products

Industrial Products Business

Gift Items, Mail Orders

Living Care Products

Consumer Products Business

Beauty Care Products

Oral Care Products● Main Lines of Business
Advanced oral care products to help customers stay healthy

Main Product Categories
Toothpastes, toothbrushes,
mouthwashes, and other dental
products

Hair and skin care products for health and comfort of body and mind
Main Product Categories
Shampoos, conditioners,
hair-styling products,
hair-nourishment treatments,
hand soaps,
body washes, men’s cosmetics,
and antiperspirants

A well-rounded range of brands to meet growing self-care needs
Main Product Categories
Analgesics, combination cold
medicines, gastrointestinal
medicines, antidiarrhoeals,
eyedrops, tonics and nutrients,
anti-inflammatory poultices, acne
medications, insecticides, andprescription drugs

Offering you products you can trust to keep your clothes clean and smelling fresh

Main Product Categories
Laundry detergents, fine clothingcare products, pre-care products,
bleaches, fabric softeners, andmaintenance products

Products useful for clean and comfortable living and dining

Main Product Categories
Dishwashing detergents,
household cleaners, andcooking aids

Custom products tailored and mail order products suited to meet individual needs

Main Product Categories
Novelty items, gift items and mailorder items

Always bearing our motto, “contributing to the global environment,” in mind, the Company meetsthe needs applying high technical capabilities and high functionality products based on interface science.
Main Product Categories
Surfactants, fatty acid nitrogen
derivatives, fatty acid methyl esterand its derivatives,electro-conductive carbon black, Palm tree fatty acid ester electricalinsulation oil and application examples
and various industrial cleaners(environment-friendly transformers)

Electro-conductive carbon black andapplication products (packing materials forelectronic materials including ICchips)

Industrial cleaners and subjectedmaterials (precision component
including LEDs)

CSR Report 2013 03

Messagefrom theManagement
Vision】【IdealMaintain a soundmanagement systemthat is continuously
trusted by society

We are steadily moving forward
to realize “Vision 2020.”

Lion formulated the new management vision entitled“Vision 2020,” aiming to “ be a company that creates value
for lifestyle and spiritual fulfillment,” “be a company that is
advanced in the area of environmental responsiveness,” anda “be a company that continuous to take on challenges,
creates, and learns.” The company decided to develop a
3-year plan with 3 phases in order to achieve “Vision 2020.”
In 2012 we started the first phase “V-1 Plan (Vision 2020
Part-1),” the Medium-term Management Plan.
For the first year of the “V-1 Plan,” the goal for sales was
attained, but unfortunately, operating profits fell below thetarget because seasonal products stagnated due to unseasonable weather and sales promotion expenses increased
due to stiff competition. However, the measures carried out
under the four strategies supporting “Vision 2020” which

Representative Director, and Chairman

04 CSR Report 2013

are “qualitative growth of domestic businesses,” “quantitative expansion of overseas businesses,” “development of
new business value,” and “enhancement of organizational
learning capabilities,” have steadily moved forward. We,
therefore, believe that we have been proceeding in thecorrect direction.
For the fiscal year 2013, we will commit ourselves entirely tothe achievement of financial targets by overcoming thegreatest challenge of recovering domestic profits. Achieving
these targets will establish an important milestone toachieve “Vision 2020.”
In addition, we will strive to realize the new management
vision and seek CSR management by incorporating CSR in
management together with the driving force of businessactivities.

Representative Director,
President and Executive Officer

Creating future value by consistently safeguarding health, comfort, and the environment for people each and every day

Aiming at being a company that createsvalue for lifestyle and spiritual fulfillment
Lion has worked to provide superior products andservices that are helpful in the daily lives of people taking“health,” “comfort,” and “environment” as our businessfields.
In 2012 in Japan we investigated consumers’ hygieneawareness and proposed new value in the hygiene fieldsuch as liquid detergent for clothing which removes
unseen dirt based on prevention and anti-fungal agent
for the bathroom. Furthermore, in the health field, ourmail-order business for products such as functional
foods, which started in 2007, reached the scope of
10-billion-yen. In the future, we will continue to work on
the creation of clean, healthy, and comfortable lifestyles
and make new proposals toward a valuable future byoffering new products with high added value and transmitting innovative information.
We have also created clean, healthy, and comfortable
lifestyles overseas especially in Asia. In China, Thailand,and Malaysia our production and distribution systems tomeet expanding demand for toothpaste and laundry
detergent were successfully enhanced and improved. We
have been promoting oral care educational activities suchas dental health care activities and sanitary practices
through hand washing at kindergartens and elementary
schools in Japan. We will contribute to the improvementof lifestyles of local residents by extending the activities
to children in Asia.

Aiming at being a company that is advancedin the area of environmental responsivenessSince the 1960s, Lion has been engaged in finding thesolutions to water environmental problems such as
bubbling in rivers and eutrophication in lakes utilizing
advanced technological innovations. Since the 1990s,
when global environmental issues became more serious,
we have continued to develop technologies from theviewpoint of harmony with the environment and efficientuse of resources. When we established “Eco Vision
2020,” we considered our role to deal with the main
global environmental issues such as “Realization of a Low
Carbon Society,” “Realization of a Sound Material-Cycle
Society,” and “Harmony with Nature.” We set integrated
and advanced goals to work on the reduction of environmental burdens at all the stages from the procurement of
raw materials for Lion products to the use and disposal of
those products by our customers. In order to achievethese goals, the whole company set those goals after
many detailed discussions. Not only through the businessactivities of “today for each person,” but also throughour products, we will deliver to our customers Lion’s
proposes to reduce environmental burdens for “today foreach person” through not only our business activities but
also our products. We will receive empathy throughdelivering this proposal to our customers and strive totackle global environmental issues across the board incollaboration with our customers.

Aiming at being a company that continues
to take on challenges, creates and learns
I aspire to make the organization of Lion “a group withevery employee conscious of participation in management and with the courage to take on new challenges
across the board” in order to realize “Vision 2020.” In2012, we set forth a code of conduct, which encouraged
employees who were creative and tried hard with risk
awareness, and introduced a personnel system, which
would evaluate and recognize those who attempted andcompleted difficult tasks.
I directly talked about my ideas at all the business offices
and factories, and I continuously communicate with our
employees. In 2013, I started my blog “Hama’s Eye” on
the Intranet to directly send messages in my own words
about the direction the company is taking, as well as mythoughts.
In order to achieve the important goals of “Vision 2020,”
all of us from the top management to every employee
will share such goals and continuously attempt hard tasks
with courage; we will be an evolving organization, which
wisely learns from its successful and unsuccessful experiences.

Aiming for CSR management
For a company to continue to be trusted in society, it isnecessary to incorporate CSR into management. Lion
announced its participation in the “UN Global Compact”
in 2009, and engaged in CSR activities under the 10
principles in 4 fields including “Human Rights,” “Labour,”“Environment,” and “Anti-Corruption.” The CSR promotion department, which has been lead directly under thepresident since 2012, has eagerly worked on the activities using the international standard of social responsibility “ISO26000.” After understanding the requirementsfrom society, we matched them to our management
challenges, specified the major CSR issues for CSR, andset the medium-term objectives. Going forward, we will
also set priority issues for the overseas groups andproceed with our efforts while listening to the voices ofour stakeholders.
CSR Report 2013 05

Special
Features【Ideal Vision】

Maintaina soundOur
environmental initiatives toward 2020
management systemthat is continuously
trusted by society

Eco Vision 2020

E nvironmental initiatives by LionAs a household consumer products manufacturer, Lion’s management takes environmental issues very seriously. We were
one of the industry’s pioneers in developing products that take the aquatic impact of the product on the environment into
consideration, during as early as the 1960s when the issue of foam in rivers started to appear. Continuing this tradition,
we are committed to mitigating the environmental impacts in all stages of our activities, from procuring the raw materials
to foreseeing the use and disposal of a product by consumers.
Since 2001, we have been running “the medium-term environmental plan for the three years,” promoting environmental
activities with concrete goals and the year 2012 was the final year of the plan set out in 2010.

R eview of “the medium-term environmental plan for the three years (2010-2012)”
We met our CO2 reduction target for the business activities area thanks to the more compact packaging of washing powder
products, the review of our manufacturing efficiency and our thorough push for energy-saving activities. The targets for logistics
and overseas locations were also achieved, as well as for chemical substance management, environmental management structureenhancement, awareness promotion and PR. However, the targets in waste management and water use reduction were not met.
We will review and analyze the cause of this underachievement with refreshed determination to push the agenda forward.
Keys:

Categories

CO2
Emission
Reduction

Waste
Reduction

Effective Use of
Water Resources
ChemicalSubstance
Management
Environmental
Management
Structure
Enhancement
Environmental
Awareness andCommunication

Not achieved

2012 Target

Achievements

Relatedpages

Reduce energy-derived
energy-derived CO
CO2emissionsfrom
Reduce2 emissions
from businessactivities
morebusiness
activities
by 30%byor30%
moreorcomparedcomparedto1990 to 1990

Reviewed laundry detergent production
Efficiency, more compact packaging andpromoting energy-saving activities(33% reduction compared to 1990)○

p32

Reduce specific energy consumption inlogistics by 1% or more on average eachyear

Increased use of bigger trucks, improvement in loading efficiency in transportation(1.6% reduction from the previous year)

Reduce the CO2 emission rate at overseas
production sites by 1% or more on averageeach year

Conserved energy by reviewing production
conditions(3% reduction from the previous year)

Reduce total waste generation by 55% ormore compared to 1990

○

＊3

○

＊3

Promoting the recovery of more valuable
resources from waste(the target was unmet due to the degradation of the material recovery
market, disposal of disaster-affected goods, disposal of cooling water for gas
emissions due to incinerator shutdowns, and the increase of waste fromproduction line due to the increased production of detergent raw materials)(49% reduction compared to 1990)

p32
p32

p30

Achieve Zero Emission ＊1 status group-wide

Implement Lion’s waste recycling policies inaffiliated companies

Reduce volume of discharge by 20% ormore compared to 2005＊2

Reduce in-process washing water

Reduce total PRTR substance emissions by
45% or more compared to 2005 ＊2

Reduction by reviewing manufacturingconditions and completing new chemical
notification under revisions to the law(54% reduction compared to 2005)○

p30

Reduce volatile organic compound (VOC)
emissions by 75% or more compared to 2000

Introducing VOC recovery systems andimprove product composition(82% reduction compared to 2000)○

p30

Carry out environmental management according
to the PDCA cycle

Publishing data from overseas sites, set andmanage targets regarding CO2 emissions○－－

Identify and perform accounting for environmental liabilities

Understanding the environmental liabilities○

p27

Continue promoting Eco Lion activities

Endangered species protection activities
and power conservation in summer○

p32,33＊１ Our deﬁnition of Zero Emission
99% or higher recycling rate, excluding residues
from recycling, for total waste generated.

06 CSR Report 2013

Achieved ○Results
Principal measures during 2010 -2012(unmet target due to increased number of washing andincreased volume of washing water at specific sites)(unachieved in 1 office)(12% reduction compared to 2005)

p30

p31

＊２ The achievement was computed using the objectives
for the substances prior to the revision of the law.
＊3 In addition to the objectives for 2012, the target for the 3 years
was also achieved.

In Setting “Eco Vision 2020”

In 2011, we published “Vision 2020,” our new management vision for the year 2020. One of its cornerstones is ‘to be
an environmentally advanced company.’ For that reason, we clarified the areas and activities of the company’s involvement, reflecting the challenges we face now with regard to the global environmental issues.

1. Global Environmental Issues
Despite concerted international efforts to reduce emissions of greenhouse gases, it is predicted to increase from23 billion tons (2000) to 34 billion tons (2020), with the worrying consequence of accelerating global warming.

Global warming

Shortage andWater is vital for all living creatures. The demand for water is predicted to increase from 4 trillion (2000) to 5.2
uneven distribution
trillion cubic meters (2025) and shortages of water are increasingly apparent in the world.
of resources
Loss of biodiversity

With 30 million species on earth, it is said that we have been losing 40,000 species every year since 1975.
Before, the rate was about 1000 species a year, therefore the rate of extinctions is clearly increasing.

2. Areas of involvement and our action

Source: Ministry of the Environment, Annual Report on the Environment,
the Sound Material-Cycle Society and the Biodiversity in Japan 2010

By promoting ‘Green Innovation’ that supports our strategy of “Vision 2020” and making new discoveries,
we contribute to realizing a ‘Low Carbon Society,’ ‘Sound Material-Cycle Society’ and ‘Harmony with Nature’.

❶ Realizing a Low Carbon Society
Challenge
Our actions

Emissions of greenhouse gases from industries in advanced countries are decreasing while emissions from households areon the rise.
Through the use of more plant-derived raw materials and the reduction of oil-derived plastic packaging, we aim to reduce greenhouse gases
generated by households using our products to promote the shift to a low carbon society.
Carry out continuous efforts to reduce greenhouse gases generated by our business activities.
In overseas operations, set and work towards the targets for greenhouse gases reduction, through our business activities and products.

❷ Realizing a Sound Material-Cycle Society
Challenge
Actions

Serious shortage of water resources, maximum usage of recycled resources.
Through the reduction of water use in our business activities, waste reduction (promotion of Zero Emissions) and wastewater discharge reduction (recycling
factory wastewater discharge), as well as offering products that require less water at home, we promote the shift to a recycling-oriented society.
In overseas operations, we address and work towards the phased reduction of waste and water use through our business activities and products.

❸ Harmony with Nature
Challenge
Actions

Take biodiversity and aquatic environment into consideration throughout the whole life cycle of a product.
We aim to procure raw palm oil from sustainable sources.
We engage in water resource conservation activities.

❹ Awareness and Education in the Society

As well as aiming to achieve the targets on above agendas, ❶ to ❸, we promote awareness on these agenda and encourage behavioral
changes in society.

Realizing a sustainable society❶ Realizing a Low Carbon Society❷ Realizing a Sound Material-Cycle Society❸ Harmony with Nature<Target items>
CO2 reduction in domestic sites
CO2 reduction in overseas sites
CO2 reduction in households<Target items>
Water use and wastewater discharge
reduction in domestic sites
Waste reduction in domestic sites.
Water use reduction in households<Main measures>
Developing products that use less water<Target items>
Procurement of plant-derived oils thattake biodiversity into consideration
Conservation of biodiversity<Main measures>
Use of sustainable plant-derived
raw materials
Promotion of sustainable material
procurement practice
Biodiversity conservation activities
Water resource conservation
activities<Main measures>
Use of plant-derived raw materials(carbon neutral)
Reduction of plastic containerand packaging❹ Awareness and Education in the society
Awareness and Education

Use of plant-derived raw materials(renewable raw materials)
Better use of rain waterContainer and packaging material
reduction by the 3Rs
Awareness and Education

Contribute to reducing environmental impact through our
products that are designed to ‘Today for each person’

Awareness and Education

Best use of plant-derived
raw materials
CSR Report 2013 07

【Ideal Vision】

sound
LMaintain
ist of aTargetsof “Eco Vision 2020”
management system
Within thecompany
Outside thecompany

Reduction of
2 greenhouse gases frompost-use products

Turnover unit basis
4% reduction (compared to 2010)
51% reduction (compared to 1990)(Absolute quantity: 48% reduction
compared to 1990)

Turnover unit basis
9% reduction (compared to 2010)
53% reduction (compared to 1990)(Absolute quantity: 41% reduction
compared to 1990)

Within thecompany

Reduction of
3 greenhouse gases frombusiness activities,
overseas

Manufacturing unit basis
1% reduction year-on-year

Manufacturing unit basis
1% reduction year-on-year

Outside thecompany

Reduction ofgreenhouse gases from4
post-use products,
overseas

Reduction of 100 thousand tons annually

Within thecompany－－

Reduction of water use
5 in business activities

Turnover unit basis
9% reduction (compared to 2010)
30% reduction (compared to 2000)(Absolute quantity: 29% reduction
compared to 2000)

Turnover unit basis
15% reduction (compared to 2010)
35% reduction (compared to 2000)(Absolute quantity: 23% reduction
compared to 2000)

Outside thecompany

Greenhouse gases (domestic)

Turnover unit basis
34% reduction (compared to 2010)
49% reduction (compared to 1990)(Absolute quantity: 40% reduction
compared to 1990)

Reduction of water
6 usage at householdusing our products

Turnover unit basis
14% reduction (compared to 2010)
43% reduction (compared to 2000)(Absolute quantity: 39% reduction
compared to 2000)

Turnover unit basis
17% reduction (compared to 2010)
45% reduction (compared to 2000)(Absolute quantity: 33% reduction
compared to 2000)

Waste

Greenhouse gases (overseas)

Targets for 2020

Turnover unit basis
23% reduction (compared to 2010)
40% reduction (compared to 1990)(Absolute quantity: 39% reduction
compared to 1990)

Zero emissions within
7 the company

Zero emissions in all domestic production sites

Zero emissions in all domestic offices－－

95% wastewater recycle at multiple
factories

Obtain RSPO＊ Supply Chain certificationand start purchasing certified oils

All palm oil purchased to be RSPO
certificated (2015)

Carried out in all Lion’s unit factories

Carried out in all domestic sites

50% increase of consumer participationin our awareness activities (compared to
2010)

Doubling the amount of consumer
participation in our awareness activities(compared to 2010)

Recycle of factory
wastewater discharge

Procurement

8

Procurement ofplant-derived oils that9take biodiversity into
consideration

Biodiversity

Waste water
discharge

Water

Targets for 2014

Reduction of
1 greenhouse gases frombusiness activities

10

Awareness andEducation in
the society

Education

Harmony with Nature

Realization of Sound Natural-Cycle Society

Realization of Low Carbon Society

Categories
that is continuously
trusted by society

Energize biodiversity
conservation activities

Environment aware11 ness and education for
consumers＊ RSPO : Roundtable on Sustainable Palm Oil＊ RSPO: Roundtable on Sustainable Palm Oil

08 CSR Report 2013

V oices of Outside Stakeholders
In order to set relevant objectives with regard to our environmental challenges, consultations with specialists fromenvironmental NGOs were conducted. Consultations with environmental communication specialists were also heldin order to share and achieve our objectives together with customers and consumers (dialogues were held between
November and December 2012).

1. Theme: Our New Environmental Objectives “Eco Vision 2020”
Extracts of the comment provided by

Mr. Yasushi Hibi

Managing Director,
Conservation International Japan
Lion’s new environmental objectives “Eco Vision 2020” are of a highstandard in terms of its coverage and progressiveness, making good use ofquantitative assessments.
However, as for the objectives and targets for overseas operations, I
expect the company to review and improve them to set morechallenging targets, including the absolute quantity targets, even for
the initiatives during ongoing period.
Lion is in the position of influencing the behavior of consumers. It is
important to keep communicating with them such as through theirproducts.

2. Theme: Environmental Communication

Extracts of the comment provided by

Ms Minako Oishi

Board Member Chairperson,
Environment Committee
It is important that communications from the company to consumers is easy
to understand with concrete facts. It was felt that the assertion of ‘theproduct is eco-friendly because it uses plant-based raw materials’ is not
sufficient as an explanation.
When using an environmental label, it is important that the label includes
information that consumers do not know and are not aware of.. It is
desirable to set out criteria covering all the stages of ‘the life of a product,’not only a part of it.
Consumers can only change their behavior once they are convinced. It is arole and a responsibility of an enterprise to communicate information that
leads to consumers’ choice, such as the fact that the use of RSPO
certificated oils contributes to conserving biodiversity of forests.
I hope Lion will continue to carry out its environmental awarenesscampaigns at schools.

P ost-consultation Notes
These consultations were valuable opportunities for us in learning the opinions of the specialists outside ourorganization.
Firstly, we confirmed that our new environmental objectives “Eco Vision 2020” satisfy a good level. We were also given
advice for future efforts such as setting additional targets for initiatives even during ongoing period. We learned that
more engagements in environmental initiatives were expected not only in Japan but also overseas, which made us
determined to further pursue these activities.
We were also given the advice that by enhancing communication with consumers through environmental labeling etc.,
we could inspire the consumers to behave in environmentally friendly ways. We have re-affirmed that it is one of thecompany’s important roles to contribute to realizing a sustainable society by enhancing communication and we willfurther strengthen our commitment.

CSR Report 2013 09

Lion and CSR【Ideal Vision】

Maintaina soundBusiness
Activities Supporting Clean, Healthy,
management systemthatis continuously and Sustainable Life
Comfortable
trusted by society
Basic Approach
The origins of Lion’s approach to CSR can be traced
to the Company’s founding spirit of “working forthe benefit of people and society.”
With the robust foundation for business establishedbased on the company motto and the management
philosophy, Lion has contributed to sustainable
development of society through conducting businessactivities under the management vision.

Sustainable corporate
and social development
Foundationfor BusinessBusiness
Activities
Management
VisionWith the aim of sustainablecorporate and social
development, Lion determines
its CSR targets and conducts
relevant activities, always
responding to requests fromsociety through dialogue with
its stakeholders.

● Company Motto/Management Philosophy● Management Vision and Plan

The Company Motto and Management Philosophy are determinedby inheriting the Company’s founding spirit, as well as the LionGroup Charter for Corporate Behavior and Behavioral Guidelines,
which were formulated to achieve the concept of the motto andmanagement philosophy. Each of Lion’s employees behaves andconducts CSR activities in accordance with all of these concepts.

We promote business activities following the new management
vision and corporate message determined in 2011 as our
corporate direction until 2020.
URL http://www.lion.co.jp/ja/company/about/vision.htm

Foundation for BusinessCompany Motto

Lion Corporation positions “Fulfilling a Spirit of Love” as fundamental
to its management, and thus contributes to the enrichment of thehappiness and lives of people.

1
2
3
10 CSR Report 2013

Management Philosophy

We bring together the power of our personnel, the power of our technology and the powerof our marketing, as we provide superior products that are helpful in the daily lives of people.

We respect the “Spirit of Tenacity and Creativity” that we have maintained since ourfounding, as we continue developing our business.
We deeply appreciate all those who extend their valuable support to us, as we prosper
together through sincerity and mutual trust.

Oral Hygiene Business
Oral hygiene is Lion’s core area of business. Over theyears, we have contributed to the improvement ofpeople’s living habits by developing many dentifrices
with new functions throughout the eras, and havedisseminated the correct knowledge about toothand oral hygiene. For the future, we will strive to

make proposals based on new values, focusing on
the relationship between oral hygiene and systemic
health, which has been revealed in recent years.
Meanwhile, in Asia, we will promote awareness andeducation of oral health, aiming to be No.1 in the
Completionof the business field.
oral care
Odawara Plant

Functions added in response to people’s needs,
as well as Awareness and Education of oral health

Clinica(for prevention of cavity)

Lion Dental Clinic for Children

Completion of the
Odawara Plant

Tooth brush and toothpaste
donations to communities in Asian
countries

DentorClinica(for prevention of pyorrhea)(for prevention of cavity)

Organizational
Governanceproducts for daily life, as well as promotions andeducational activities. A new corporate message wasformulated in 2011 under the slogan of “life. love.
Lion,” we will conduct business activities for both
physical and mental health and comfort, aiming to
be a company, which creates a valuable future.

Human Rights

Business activities supporting clean, healthy,
comfortable and sustainable life are the basisof Lion’s corporate social responsibility. Since its
foundation, Lion has long been a culture bearer fororal health and cleanliness, making proposals formaking good habits through the provision of usefulLion and CSR

Business Activities

for children

Growth (1913~)

Mass Production (the 1960s~ and 1970s)

Promoting oral health/Starting educational activities Expanding the market, andThe root of social action to make tooth brushing habits developing world-class products
programs
for children

FutureExpansion (the 1970s ~ onward)

FutureResponding to diversifying oral From oral health to systemic healthhealth issues with more scientific From Japan to other Asian
research
countries

Culture of Cleanliness and Environmentally-friendly Business

Education of cleanliness andmeasures for the global environment

Plant-Derived Lion Laundry Soap
(Japan’s first plant-derived soap)Dashare currently tackling global environmental issues
including those relating to water, thus we will makefurther efforts for establishing a sustainable society.

KireiKirei
Medicated Liquid Hand soap

KireiKirei
Medicated Foaming Hand Soap

KireiKirei
Medicated Liquid Hand soap

The ”Beat” brand laundry detergent
KireiKirei
Medicated Foaming Hand soldSoapin Korea

The ”Beat” brand laundry detergent
sold in Korea

Spark

Lipon F(earned the top recommendation of
the Japan Food Hygiene Association)
Lipon
Plant-Derived Lion Laundry Soap (Japan’s first fatty alcohol-based
Dash(Japan’s first plant-derived soap) synthetic detergent)
Lipon F
Manual on standard home laundry procedures(earned the top recommendation of Murin TOP(Education on laundry procedures) the Japan Food Hygiene Association)

Spark
Shokubutsu-Monogatari
Educational activities to make(Plant Story)
hand washing a habit

TOP NANOX

Lipon
Early Notions
HygieneReform Response to Water(Japan’s first fatty alcohol-based
About Hygienein
Post-war
Japan Environment Issues
synthetic
detergent)(1891 ~ 1940s)(1950s)(1960s ~ 1980s)
Manual on standard home laundry procedures

Response to Petroleum
Food Poisoning Cases Raise Water Resources andResources Issues and Resource Needs for Disinfectants
Water Use Reductions
Shokubutsu-Monogatari
Conservation(1990s)Combating Odors (2010s)(1990s~
2000s)
Educational activities to makePromoted awarenessabout
washing with
Early Notions
detergent
About Hygiene

Amid an increase inawarenessof reducing
Response to Petroleumuseof fossil
Resources
Issuesresources,
and Resource
expandingConservation (1990s)
plant-derived products
Amid an increase inawareness of reducing
use of fossil resources,
expandingplant-derived products(Education on laundry procedures)

Contributed toeradicationofHygiene Reform
parasiteswith aJapanin Post-war
neutral(1891 ~ 1940s)(1950s)detergent for
both dishes andPromoted awareness Contributed tovegetables
about washing with eradication ofdetergentparasites with aneutral detergent for
both dishes andvegetables

Murin TOP

Responded to various
water
environment
issuesResponse
to Waterwhichoccurred asIssues
the useEnvironmentofsynthetic
detergents(1960s~ 1980s)
became popular
Responded to various
water environment issues
which occurred as the useof synthetic detergents
became popular

Fair Operating
Practices

Through supplying many kinds of detergent,
including laundry detergents and soaps, Lion has
helped instill a culture of cleanliness in society fromthe days when notions about cleanliness were weak
until the present day. In product development, we(Plant Story)

The Environment

Founding (1896~)

Expansion (the 1970s ~ onward)

Responding to diversifying oral
oral
healthseries
to systemic health
The From
Dentor
Systema(for prevention of periodontal disease)health issues with more scientific
From Japan to other Asian
research
countries

Consumer Issues

Founding
Growth (1913~)
Mass Production (the 1960s~ and 1970s)
Lion
Toothpowder(1896~)
A supplement picture book thatcomes withthe product(This is theExpanding the market, andPromotingoral health/educational
activities
Charitycoupons printed
on the back Starting
root of educational activities about White & Whiteof the packet(the root of Lion’s social
The root of social action to oral
make
tooth
brushing habits developing
products
healthfor children)(Developmentworld-classof laminated tubes)
action program)
programs

Tooth brush and toothpaste
donations to communities in AsianThe Dentor Systema series
countries(for prevention of periodontal disease)

TOP NANOX

For
thefuturehand washing a habit
Launched
medicated Released
Establishing
soaps
NANOX”
sustainable
Water Resources
andFood Poisoning Cases Raise “TOPFor society
Developed
mixed
with
Contributing
to aWater Use
Reductions
Needs for Disinfectants
thefutureeducational
lifestyle in
Combating Odors (2010s) clean(1990s ~ 2000s)activities uniquely-develop
for children
ed cleaning
Asia
Launched medicated Released
Establishingingredients
soaps“TOP NANOX”
sustainable society
Developed
mixed with
Contributing to a
educational activities uniquely-develop
clean lifestyle infor children
ed cleaning
AsiaReport 2013
CSR
ingredients

Community Involvement
and Development

Charity coupons printed on the backof the packet(the root of Lion’s social
action program)A supplement picture book thatcomes with the product (This is the
Dentorroot of educational activities about White & White(for prevention of pyorrhea)
oral health for children)(Development of laminated tubes)

Labor Practices

Lion Dental Clinic for Children
Lion Toothpowder

11Lion and CSR【Ideal Vision】
Aspiring foraa sound
New Concept of Hygiene and Health
Maintainmanagement
systemLion’s new management
vision for the future, “Vision 2020” defines the company ‘creates value for lifestyle andspiritual
fulfillment
long
into
that is continuouslythe future.’With this in mind, we continuously seek what we can do day after day as well as research into solving anticipatedtrustedby societysocial issues, working towards expanding the scale of our business to meet the demands of more people.
In order to offer products that contribute to everyday wellness for everybody, Lion Group is pursuing various
types of research.
Our ‘Behavioral Science Research Institute’ is working hard to respond to consumer requests for ‘a safer andmore comfortable everyday life,‘ by identifying the needs and developing products to satisfy those needs.

1
In order to create new value,

we must identify
genuine needs.
Noriko Hara
Director - Customer Insight Research
Lion Behavioral Science Research Institute

It is important to findanxiety and dissatisfaction,
which you do not even realize you have,and provide productsthat address these issues.

2
From various investigations,
we have developed a new conceptof cleanliness,

What can Lion do to make an ordinary day
just a little bit happier?
Our Behavioral Science Research Institute isseeking clues to answer this question byclosely monitoring people’s everyday lives.
Not only analyzing questionnaires and salesdata, we seek out unidentified anxieties anddissatisfactions, which people have not evennoticed themselves, by closely following
volunteer survey participants’ lifestyle or using
approaches based on psychological studies.
From these investigations that closely observe
consumers, we found out that:・they have anxiety for something that theycannot see, and・they are unconsciously thinking that ‘inside thehouse is clean but outside is not.’Through our offerings of products based on the ‘Preventive Care’ concept, Lion is responding to the consumers’
needs to ‘protect families from anxiety about the invisible
and realize an easier and more comfortable life.’
Our products are developed based on the concept of ‘Preventive Care’‘Preventive Care.’TOP HYGIALOOK Bath Antimold Fogger

Laundry detergent based on the concept A fumigation-type fungicide containing ‘sliverof ‘clothes get more germ-resistant every ion fog’ to kill mold-causing bacterium andtime they are washed.’
prevent the growth of black mold inbathrooms.

3
We are ready for theneeds of the future,making the best use of the accumulated
outcomes of our studies.

12 CSR Report 2013

Our aim is for everybody to ‘live comfortably and positively
everyday with an assured feeling of safety and confidence forthe future,’ by eliminating peoples’ anxiety about the invisible
and discomfort in everyday life.
We think it is important to eliminate small anxieties and discomfort ineveryday life one by one, using the investigative methods we have developed
and the vast data we have accumulated.
We can also predict future needs from changing trends in lifestyle identified
in the studies.
In order to offer products as quickly as needs appear we are already on track
to develop such products.

Activities in Asia
We are pursuing what we do best in overseas countries as well, through the offering of laundry and oral careproducts as well as communication activities such as ‘Oral Health Event of Tooth Brushing for children,’ to keep
promoting cleanliness, health, comfort and environment of the people.

Expanding markets

Quantitative expansion of business

Overseas business that started in 1957 in Thailand has been steadily

2012 saw significant growth especially in

expanding for the 55 years of expansion in Asia
last 55 years toThailand, South Korea, China and Hong Kong.

2012. We have juststarted the trial-saleof toothbrushes inVietnam.

We will continue to offer products that meetSouth Korea
2004 ～
China
1988 ～

the different needs ofdifferent localities.

Taiwan1963 ～

Philippines
Hong Kong2012～
1974 ～ Thailand
1957 ～
Malaysia
1960 ～‘Systema toothbrush series,’a big hit in China.

Singapore
1982 ～‘NANOX,’ the No.1 product in liquid laundry
detergent market in Hong Kong.

Indonesia
1981～

Turnover of overseas market(100 million yen)
600

Strengthened production capabilities

500

We are strengthening our produc-

400tion capabilities in various locations

0

to meet growing demands. New

591.7

529.7

537.5

2010

2011

＊Turnover of consolidated companies

2012

factories for oral care products andlaundry detergents have opened in
Thailand and Malaysia respectively.

Promoting oral care habits

New factory for oral careproducts (Thailand)

In addition to South Korea, Hong Kong andLion Eco Chemicals (Malaysia) where
factory extension works is underway toincrease production of methyl ester
sulfonate (MES), an environmentallyfriendly surfactant.

Singapore, we carried out ‘Oral Health Eventof Tooth Brushing for children’ in Philippines
and China in 2012.
For related information, see p43

Topics Environmental activities in CJ Lion (South Korea)● Korea’s Green Management Award● Eco Environmental Brand Award

Korea Green Management Awards are prestigious environment-related
awards organized by South Korea’s Ministry of Knowledge Economy(currently the Ministry of Trade, Industry and Energy) and Ministry ofEnvironment. The company
received awards in recognition of the ‘promotion ofenvironmentally conscious
practices that start fromeveryday life’ of all stagesof activities from productplanning to marketing.

Our ‘Cham Green,’ a dishwashing detergent product that is gentle forhands was awarded the Eco Environmental Brand Award (organized
by Korea Brand Management Association), in recognition of its
environmentally friendly
composition such as
biodegradability, as wellas the use of raw
materials that produce
fewer greenhouse gases.

Award CeremonyAward Certificate

Award certificate

CSR Report 2013 13

Lion and CSR【Ideal Vision】

Promotion of CSR Activities
Maintaina soundmanagement
system Lion Group Companies’ Responses
Since
2011, we are promoting
our
CSRis
activities
based on thethatcontinuouslyISO
26000, by
the society
global social
trusted1
2
responsibility standard. Listening to, and incorporating theopinions of, third party organizations, we confirm and evaluate our responses and evaluate the importance of each
item. Through consultations
with the group companies, wewill set our goals and operatethem in the entire Group.

Confirmation /evaluationof our response

Importanceevaluationof each item

3

4

Hearing for groupcompanies

Setting goals

5

Operating acrossthe entire Group

Headquarters and Domestic Group Companies
Overseas Group Companies

Value Chain and Important Issues
Among the various ongoing activities the company is pursuing, the ‘Important issues’ and ‘Primary Opportunities
to Dialogue with Stakeholders’ identified in the consultation hearings, in compliance with the ISO 26000 procedure, arelaid out below in each stage of the value chain, from ‘Procurement of raw materials,’ ‘Major initiatives undertaken by
Lion,’ ‘Use by consumers,’ and ‘Society/Environment.’

Procurement of
raw materials

Major initiatives
undertaken by Lion・Human resource development/revitalization programs
・Establishing good working environments

・Promoting employees health management

Important issues

Opportunities

Enhancing social contribution programs
Creating group-wide CSR management structure,
Establishing and communicating the human rights policy,
Enhancement of group-wide management of chemical substances,

Risks
Promoting CSR procurement

Promoting information security
Enhancing the group-wide quality assurance system
Enhancement of group-wide occupational health & safety management system

Primary
Opportunities to
Dialogue with
Stakeholders

Business partners: observation of raw material supplier plant

p35

Employees: Labor-management meeting

p21

Business partners: Lion-kai General Meeting

p35

Shareholders/Investors: Interaction with directors at＊ Human rights due diligence: Steps that an organization must take in order to recognize, prevent and deal with negative influences on human rights.

14 CSR Report 2013

Achievements in 2012
In 2012, we investigated our ongoing CSR activities and identified important issues. The investigation was carriedout by relevant divisions in the headquarters, checking more than 200 items specified in ISO 26000. On-site visits
are being made for the items requiring on-site checks, which includes the overseas group companies.
Using the outcome of the investigation as well as accounting for world CSR trends, we accounted for ourcompany’s unique business characteristics, potential risks, opportunities and considered implications, to establish
the important issues. These included the establishment of the CSR management structure, the promotion ofhuman resource development and revitalization programs, the promotion of CSR procurement working together
with suppliers, the active communication of information useful for daily life and educational activities, and theenhancement of social contribution programs in health and comfort areas.

Ongoing efforts
In 2013, we will especially focus on two priority areas of establishing the ‘CSR management structure’ and‘promoting CSR procurement.’
We will also set the medium-term objectives (see p16-17), aiming to establish a group-wide management structure including the overseas operations.

Use by consumers

Society/Environment

Communication of information useful for daily life and educational activities

Offering of products and information that contribute to the development of a sustainable society

Progressive environmental activities
in health and comfort areas
reconsidering the business continuity plan, promoting compliance/ internal control systems
human rights due diligence ＊pollution prevention

Customers: Customer support

p39

Local communities: Plant tour

p45

Environment: participating in environmental events& Environmental-related dialogue with communities

p29

ordinary general meeting of shareholders & Participating in IR events

CSR Report 2013 15

Lion and CSR【Ideal Vision】

CSR Objectives
and Achievements
Maintaina soundmanagement
systemIncorporating the feedback
from the consultation hearings, the Lion Group has clarified the vision and set the mediumterm CSR
objectives for 2014, the same target period as the Medium-term Management Plan, with regard to the core
thatis continuously
subjects specified in ISO 26000.
trusted by society
By managing and reporting the yearly goals and achievements, we will push the activities forward.

Core subjects

Ideal Visions

Maintain a soundmanagement system
Organizationalthat is continuously
Governance trusted by thesociety

Human
RightsLabor
Practices

Establish
framework forrespecting humanrightsImportant issues

Medium-term objectives (2014)

1 Establish the group-wide CSR
management structure

Create and disseminate human
1 rights policy

ment

Fair
Operating
Practices

ConsumerIssuesCommunity
Involvement
andDevelopment

Disseminate the Lion Group Charterfor Corporate Behavior
as a CSR policy

Create a draft version of revised Lion Group Ch
Corporate Behavior as part of the CSR policies

Set objectives/KPIs and manage
progress

Identify issues from CSR investigation in accord
with ISO 26000 procedure－－

Strengthen human rights contents in Lion Grou
Charter for Corporate Behavior

Strengthen the framework securingrespect for human rights
Disseminate information regarding the
hotline and strengthen the advice andwhistle-blowing framework

Disseminate information through a hotline

Implement human resource
development/revitalization programs

Formulate personnel system necessary for achie“Vision 2020”

Carry out diverse human resources
promotion programs

Carry out diverse human resources promotion
programs (female, re-hired)

Achieve the requirements for the Next
Generation Support Act Phase 4
Action Plan

Promote and manage progress of the Next Gen
Support Act Phase 4 Action Plan

Contribute to asustainable society as
an environmentally 1 Progressive environmental activities
advanced company

Promote and manage progress of“Eco Vision 2020”

Formulate “Eco Vision 2020,” the new environ
medium- and long-term plan

Promoting social
responsibility
activities throughout 1 Promoting CSR procurement
the value chain

Carry out supplier CSR questionnaires
and offer its feedback to suppliers.

Review and create revised version of CSR procu
systemOffer products and information
1 that contribute to sustainable
development

Promote and manage progress of“Eco Vision 2020”

Formulate “Eco Vision 2020,” the new environ
medium- and long-term planCommunication of information
2 useful for daily life and educational
activities

Enhance the provision of informationthat contribute to healthy andcomfortable life according to lifestyleand life stages

Provide information regarding everyday life usin
and websites, such as the ‘Wellness Research C
and ‘Meisters of Daily Life’

Promoting oral hygiene activities
Promote children’s brushing teeth
education program

Promote children’s tooth brushing education p(expansion of participating schools)

Promote hygiene programs
Promote children’s wash-hand &gargle program

Promote children’s wash-hand & gargle progra

Change theawareness of
employees
through raisingmorale andmotivation

2 Human rights due diligence1

Human resource development/
revitalization programs

2 Establish good working environments

EnvironObjectives for 2012

Pursuing
customersatisfaction bycreating safe andtrustworthy
products

Co-existence andco-prosperity withsociety andcommunities/
contribute to thedevelopment ofsociety in health,comfort andenvironment areas

Enhance social contribution
programs in health and
1 comfort areas (environmental
programs to be dealt with
under “Eco Vision 2020”)

Among the important issues, agenda driving regimens are already in place in the categories shown on the opposite page on theright, based on the PDCA cycle for further improvement.

We understand enhancing initiatives within the overseas group will be

an issue in the future, and we plan to set up goals as the need arises based on the results of consultation hearings.

16 CSR Report 2013

harter for

dance

Main Achievements in 2012

Creation of a draft version of new Lion Group Charter for
Corporate Behavior

Evalu
ation
○

Objectives for 2013

Related Pages

Publish and disseminate revised version of Lion Group Charter for Corporate Behavior
Implement e-learning program regarding the revised Group Charter for Corporate Behavior
14-19

Completion of domestic CSR survey and identification of CSR issues○

Set objectives/KPIs

Creation of a draft version of new Lion Group Charter for
Corporate Behavior○

Publish and disseminate revised version of Lion Group
Charter for Corporate Behavior

97% response rate of Compliance Awareness Survey○

Disseminate information through a hotline
Understand human rights initiatives at suppliers’ sites

Revision of personnel management system to promote changes in
employees’ behaviors to be more challenge-oriented
Implementation of Global Human Resources Enhancement Program○

Populate the new personnel management system
Formulate and implement a training framework

21

Initiatives by the Diverse Human Resource Promotion Committee
Female employees’ subcommittee: organized career forum etc. tounderstand work of different divisions
Re-hiring of retired workers’ subcommittee: revised theframework to facilitate re-hiring○

Implement diverse human resources promotion
programs (for females, re-hired, temporary and agency
workers)

22

Implement the presentation of Childcare support programs○

Promote and manage the progress towards the Next
Generation Support Act Phase 4 Action Plan

23

Completion of formulating “Eco Vision 2020”○

Promote and manage progress of “Eco Vision 2020”

6-9,
26-33

Creation of revised draft version of Procurement Principles anddraft version of Supplier CSR Guidelines (preliminary title)○

Revise the Procurement Principles
Finalize and publish the Supplier CSR Guidelines
Carry out supplier CSR questionnaires and offer its
feedback to suppliers

34-35

Completion of formulating “Eco Vision 2020”○

Plan to strengthen environmental communication

9,
40-41

ng events
Center’Creation, accumulation and communication of daily life information through “Meisters of Daily Life”
Regular offering of daily life information on the company’s website
Information exchange type events for consumers○

Enhance provision and accumulation of informationthat contribute to healthy and comfortable life
according to lifestyles and life stages

38

program

Promotion of Oral Health Event of Tooth Brushing for children (647schools participated. 322 schools in 2011)○

Promote children’s tooth brushing education program(expansion of number of participating schools,
locations and overseas locations)42-43

Promotion of children’s wash-hand & gargle hygiene program at
kindergarten etc. (ran ‘Defeat Germs Campaign’ at 1,512
kindergartens where 265,447 children participated. Visited 28
locations in Tohoku region hit by earthquake in 2011)○

Promote children’s hand-washing education activities(expansion of visiting locations)

44-45

up

eving

n

neration

nmentalurement

nmentalam

19-20

Organizational Governance

Review of Business Continuity Plan, Promotion of compliance/ Internal control systems

Labor Practices

Promotion of employees’ health management, Enhancement of the group-wide occupational health & safety management system

24-25

Environment

Pollution prevention, enhancement of the group-wide chemical substance management

30-31

Consumer Issues

Enhancing the group-wide quality assurance system, promotion of information security

36-39

19

CSR Report 2013 17

Organizational
Governance【Ideal Vision】

Maintain a soundmanagement systemthat is continuously
trusted by society

Lion Headquarters

Basic Approach

two external auditors) who satisfy the criteria as independent officers, as
dictated by the “Lion Corporation Standards Regarding the Independenceof External Directors/Corporate Auditors*” and as dictated by the Tokyo
Stock Exchange. In addition, regular meetings are held between thepresident and all external directors to exchange information.
Furthermore, a Management Evaluation Committee run by outside experts
was set up in October 2003 to ensure that evaluations and opinions of thecommittee members regarding general management issues such as theconcept of the corporate governance system, directions of business andproduct development, and the view of CSR by outside experts are reflected
in management. In order to increase the objectivity and transparency ofcompensation for directors, etc., “Compensation Advisory Committee”
consisting of external directors was set up in December 2006.
The countermeasures for mass purchase of the company’s shares, etc.
(takeover defense measures) were introduced with the approval obtainedat the ordinary shareholders meeting in 2009 and the 3-year continuation
was approved at the 2012 ordinary shareholders meeting.

Lion’s top priorities for corporate governance are
increasing management transparency, improving theefficiency of supervision and decision making, andensuring compliance. By strengthening and improving
its corporate governance system, Lion aims to enhance
its corporate value.

Corporate Governance System
Lion has adopted a system of executive officers in order to strengthen
managerial decision-making and executive functions. Supervision ofmanagement is conducted through a corporate auditor system. Since
January 2012, we have enhanced our governance systems, separatingsupervision and execution of management.
Supervision and monitoring of management was enhanced with the
installation of four independent directors (two external board directors and＊The “Lion Corporation Standards Regarding the Independence of External Directors/Corporate Auditors”
URL http://www.lion.co.jp/ja/company/about/pdf/independence.pdf

Model of Corporate Governance System

Basic policies for mediumto long-term management plans and othermajor corporate
strategies

Proposals

Opinions and advice on legal compliance andmanagement policy

Board of Directors(Supervision of management)

Decisions on execution ofimportant business matters
Supervision of directors’
executive performanceSupervision of executive ofﬁcers

Auditing

Corporate auditors(Legality audit) Monitoring(Operational audit)

Reporting Delegation Reporting

Recommendations on director compensation
Environmental Action
Promotion Committee

Executive Committee(Execution of operations)

Reporting

CS/PL Committee
Disaster Prevention Meeting

Opinions
and advice
on legalcomplianceDepartments (Performance of operations)(Business, manufacturing, R&D divisions, and functional departments)
Pursue customers’satisfaction
Build trust relationships
with shareholders and investors
Create fair and comfortableworking environments

Ensure fair trade
Promote social action
programs
Protect personal information

Auditing(Internal controls
relating tofinancial reports)(Legality, validity,
and efficiency
audits; complianceprogress audits)

Auditing

Strengthening oflegal compliance and ethics

Corporate Ethics Committee
Lion Group Charter for Corporate Behavior; Behavioral Guidelines＊Report on Corporate GovernanceURL http://www.lion.co.jp/ja/company/about/pdf/abo_gov.pdf

18 CSR Report 2013

ReportingAccounting auditors

Senior Executive
Committee

Auditing

Reporting

Auditing OfficeCompensation Advisory
Committee

Management Evaluation
Committee

Shareholders Meeting

＊Basic policy of Internal Control Systems
URL http://www.lion.co.jp/en/company/html/com0501f.htm

Percentage of Employees Who Received Survey Feedback
0
2008
2009

20

40
72.5 ％
80.3 ％

60

100（％）

80
26.5 ％

1.0 ％

19.3 ％

0.3 ％

2010

87.7 ％

12.0 ％ 0.3 ％2011

90.5 ％

9.2 ％ 0.3 ％

2012

91.6％

8.1％ 0.3％(Fiscal year)
Feedback received

Not received

No response

Lion and CSR
Organizational
Governance
Human Rights
Labor Practices

All Lion Group employees are asked every year tocomplete a compliance awareness survey. Findings arereported to management and feedback is provided
to individual divisions in order to communicate
issues within the same workplace or company. This
contributes to the maintenance and strengthening ofcompliance systems.
The fiscal 2012 survey (conducted in March 2013
with a 97% response rate from around 4,000
employees) drew opinions on a range of issues
including problems with work environments.

The Environment

Systems and provisions have been put in place toensure the appropriateness of Lion Group operationsin accordance with Japan’s Companies Act and theOrdinance for Enforcement of the Companies Act*.
With regard to systems for evaluating and auditing
internal control over financial reporting, as prescribedin Japan’s Financial Instruments and Exchange Act, Lionand the Lion Group have been establishing controls at
the company-wide and business-process levels since
July 2006. In December 2008, the Board of Directors
passed a resolution on the “Internal Control Policies
Regarding Financial Result Report.”
Evaluations of internal control effectiveness are carriedout by the Auditing Office, which reports findings to
the president and corporate auditors, as well as on aregular basis to the Board of Directors. Areas requiring
improvements are communicated to the appropriate
divisions and the progress of improvements areverified. In 2012, Lion’s internal control over financial
reporting was deemed effective. A report on internal
controls was submitted to the Prime Minister in March2013 together with the Company’s Securities Report.

Compliance Awareness Survey

Fair Operating
Practices

Establishment of Internal Control Systems

The Corporate Ethics Committee, chaired by the
director responsible for corporate ethics, works tofoster compliance awareness within the Lion Group.
The basis for compliance is the Lion Group Charterfor Corporate Behavior. This is distributed in pamphlet
form to all people working for the Lion Group andis publicly available via the Lion’s website. An annual
program of employee awareness surveys and regulareducational activities is also implemented, the latterincluding e-learning, lectures by outside speakers, andvarious training courses conducted at each workplace
and according to rank.
In 2012, in addition to the consent to the Lion Group
Charter for Corporate Behavior, e-learning provided
training regarding the insider trading regulations
against illicit trading, harassment at work, andinformation security.

Consumer Issues

Lion has appointed the Director Responsible for Risk
Management who exhaustively controls and supervises
the risk of the whole Lion Group. As for the risk
management of the environment, quality responsibility,
and accident and disaster in particular, each committee
discusses countermeasures in advance and theexecutive committee deliberates if necessary. Eachfactory was certified to ISO14001 and eagerly works
on quality management and environmental protection.
In the case where physical emergencies such as
natural disasters and accidents arise, in accordancewith the Emergency Response System, we collectinformation, make decisions on policies and measures,and investigate causes; and report to the Board of
Directors.
With regard to the Business Continuation Plan (BCP),
countermeasures such as backing up headquartersfunctions, substituting order-receiving functions,alternative production in case of plant shutdown, andstocking products to enable the continuous supply of
products were implemented.

Promoting Compliance

Community Involvement
and Development

Risk Management

CSR Report 2013 19

HumanRights【【Ideal目 指Vision】
す 姿 】

Maintain frameworka soundEstablish
managementforrespecting systemthat is continuously
humanrightstrusted by society

Lion has stipulated, “Respect for Human Rights” and “Compliancewith all laws and regulations, observing the spirit of internationalrules” in the Lion Group Charter for Corporate Behavior. Moreover,the Behavioral Guidelines refers to the refusal of child labor andforced or compulsory labor, equal employment opportunity and fairtreatment of employees, and human rights of suppliers. In 2009, we
declared our intention to support the ten principles of the United
Nations Global Compact. In the future, we will step up the description
regarding human rights in the Lion Group Charter for Corporate
Behavior to clarify our attitude conscious about human rights.

Frameworks to Ensure Respect for Human Rights
Lion believes that it is important to improve the system which figures out,reports, corrects, and follows the effect of the company’s activities onhuman rights from the perspective of human rights due diligence.
We provide our employees with e-learning for regular training coursesof the Lion Group Charter for Corporate Behavior, and make themthoroughly understand the importance of respecting human rights
regarding sexual harassment and power harassment. We also conduct
compliance awareness surveys to our employees every year to confirm
the compliance with the Lion Group Charter for Corporate Behavior.
Furthermore, we confirm that human rights are respected under the LionGroup Charter for Corporate Behavior and Behavioral Guidelines at eachstage such as employment, evaluation and treatment.
For our customers, we comply with our own “product management
system” and aggressively pursue safety and functions on our products;
we also make efforts to produce displays, which are clear and easy toread and understand, considering “the vulnerable” such as the elderly
and children, by preparing the “labeling manual.” In the studies involving
human subjects carried out in the process of product development,
we set forth, respecting the Helsinki Declaration, the “regulations for
implementation of human study” in order to place top priority on thesafety of subjects and ethical considerations and conduct clinical studies
under the regulations.
For our business partners, we have released the Procurement Principles,
which shows that we consider the social responsibilities such as humanrights when conducting procurement. Through questionnaires for CSR
procurement, we check whether our business partners have policies for

20 CSR Report 2013

respecting human rights and eliminating discrimination, and the extent
to which they are conscious about human rights. In addition, we havea system in place to confirm the facts and deal with them through areporting system, which is also available to our business partners.
As for our future approach to strengthen the human rights due diligenceprocess, we believe that it is important to establish a strong relationshipwith suppliers of raw materials and the CSR procurement system iscurrently under review. For related information, see p34-35

Contact for Consultation and Internal Reporting
An internal and external reporting system, the AL (All Lion)Heart Hotline＊, has been set up by the company as a pointof contact for employee consultation for instances of noncompliance they have discovered but they could not orshould not report the violations through normal channels. A
pamphlet distributed to all employees, including temporary
employees, informs them about the system and the rules foruse, such as instructions for making contact and prohibitionof unfair treatment of employees using the system. Business
partners can also use the hotline, and contact information isavailable on the Company’s website.
In 2012, there were seven instances of consultation orreporting, but no instances of grave misconduct were foundand all the cases were addressed and sorted out.
＊AL Heart Hotline
    URL http://www.lion.co.jp/ja/company/about/hotline.htm

AL Heart Hotline – Consultations and Notifications (2012)
Power harassment behavior
Personnel/labor management issues

2cases1casesCustomer response issues
Other

1cases3casesThe System of “ALHeart Hotline”

Consulter/Informer (employees within Lion Group or business partners)
Seeking solutions / Resolving problems

Basic Approach

Consultations andNotifications

Feedback

Internal Contact

Report contents Consultations andof consultation/
Notifications
notification(general manager specialized incorporate ethics)

Reporting

Report results ofInstruction investigation andcountermeasures

Chairman of the Corporate Ethics Committee

Feedback

External Contact

Reporting(lawyer)

Board of Directors

Chairman of the Corporate Ethics Committee
Set up as needed

The Ethics Evaluation Committee (consisting of external experts)

LaborPractices

Vision】【Ideal【 目 指す 姿 】

Promoting Amiable Labor-Management Relations
Operating under a union shop agreement, Lion has
endeavored to build upon amiable labor-management
relations, in which employees and management areproactively conducting activities such as reporting on
business conditions and exchanging opinions about working
environments at labor-management meetings.

Human Resource Development
Corporate Culture of Challenges, Create, and Learn
Innovation from the power of individual employees has
sustained Lion’s business activities. Lion will continue to build
its corporate culture by developing human resources whoalways try to overcome problems and create new value.

Framework to Strengthen Abilities of Individual Employees
Together with the introduction of a new personnel
system, Lion newly defined the type of human resourcesthat is desired by the company. To develop such humanresources, we conduct a “leader development program”
and “management training” for managerial positions,“training by job position” for non-managerial positions,and “specialized training” for each function. We havealso introduced a system where employees with especiallyadvanced knowledge and skills were recognized as“Specialists” as well as encouraging our employees toimprove their specialty by continuous efforts.

In 2013, we introduced a new target management systemdesigned to develop individual abilities and activities into results
for the organization.
When individuals set up challenging targets, repeatedly conduct
effective communication, and test hypothesis to achieve targets,then PDCA (plan-do-check-act) can be quickly cycled on-site.
Furthermore, in addition to basic training, we provide the “selfdevelopment programs” such as “Lion Challenge Cup” whichallows employees to present self-initiated group research directly
to Lion executives, and a variety of competence development
opportunities through the “elective training” for the employees
who are interested.

Global Human Resource Development
In order to continuously develop global human resources capable ofinternational business and to promote globalization, we introduced the“global human resources enhancement program” for young and midcareer employees in 2011. Participants of this program attend training forabout 7 months in Japan and overseas.
Domestic training programs are composed of basic knowledge aboutthe Lion Group’s business and overseas general education with the aimof fostering business viewpoints. Meanwhile, in overseas programs,
participants visit a foreign country for a short term to directly learn about
foreign culture, and then experience practical work at overseas affiliatedcompanies for a month. At the same time, by going to language schoolsetc., participants master language skills to leverage their specialty as wellas communication abilities to understand different cultures. From amongst
these participants, individuals active in the field of international businesshave already emerged.
Furthermore, we have the “overseas retail and distribution sector study
tour” for sales personnel at managerial levels, and foster measures such as“overseas academic conference presentation” mainly for research fields.
＊List of main training systems
URL http://www.lion.co.jp/ja/csr/employee/development/

Human Rights

Frameworks for Developing Tenacity

Labor Practices

In 2013, Lion introduced a new personnel system to make anorganization that challenges across the board based on the Code of
Conduct. We encourage our employees to challenge and appreciate
those who do challenge. A framework has been in place to increase
the understanding and motivation of each employee throughfeedback from interviews with superiors and self-assessment.

The Environment

Fair Personnel System

Leaders who lead strategies and achieve steady results
Managerial positions, who have the ability to instruct and support
subordinates, and highly-professional specialists to realize assignments.
Employees who are able to solve their issues by themselves andperform their tasks

Fair Operating
Practices

Valuing the Lion’s founder’s idea of “Employees are partners
in the Company,” Lion respects the individuality andpersonality of all employees and helps them to hone theirskills and abilities and stay healthy in body and mind.

Type of Human Resources Expected by the Company

Consumer Issues

Basic Approach

Community Involvement
and Development

Career Forum(Diverse Human Resource
Promotion Committee)

Organizational
Governance

Lion and CSR

Change the awarenessof employees throughraising morale andmotivation

CSR Report 2013 21

Labor Practices

Human Resource
Maintaina soundDiversity
management
systemLion has made efforts for promoting human resource diversity inthatismajorcontinuously
light of thechanges in the composition of the workforce and
the
need
to
respondto changes in the business environment.
trusted by swiftly
society
The Diverse Human Resource Promotion Committee was set up
in 2010, which plans and formulates personnel measures forpromoting the active participation of diverse human resources.

Offering an Opportunity to Gain Knowledge about
Jobs in the Company (Holding a Career Forum)
This is the measure proposed by the Diverse Human Resource Promotion Committee
for the purpose of supporting career development for young employees. In July
2012, a career forum was held to offer employees an opportunity to gain knowledge
about operations of positions/departments to which many employees requested atransfer so that they would be able to set their future visions easier.
The employees who currently worked or used to work in financial/legal departments
or household products planning departments (marketing) attended a symposium
and those who currently worked in such departments explained what the
departments or jobs there were like. The forum was highly appreciated: as high as
90% of the participants said immediately after the forum that it was satisfactory; and4 months after the Forum about 70% said their awareness and behavior changed
regarding career development.

The center receives inquiries via telephone and e-mails from
Lion employees (including employees dispatched to affiliatedcompanies) and temporary employees and conducts interviews,
and provides appropriate advice and information regarding
their career. We have given advice to about 120 employees
in total; and according to a survey on those employees, theirsatisfaction level is high and there are positive changes in theirconsciousness and behavior.

Employing People with Disabilities
Lion wants employees to be able to fully apply their talentregardless of their disability. Not only do the immediate
superiors of disabled employees provide care in the form of
consultation, we also have a support mentality establishedat Lion, to which everyone in the workplace subscribes.

Revision of Re-hiring System of Employees upon Retirement
In 2006, Lion began re-hiring employees who reachedthe mandatory retirement age. The criteria were revisedin April 2012 to incorporate suggestions from theemployees. The company seeks to increase motivationof both re-hired and current employees through the
improvement of the working environment that allows rehired employees to work in conditions similar to full-time
employees. This includes the re-hiring of all applicants,changing duties during the contract period, and awarding
performance-based bonuses. Furthermore, explanatoryorientations and re-hiring interviews with superiors are
conducted three years before the retirement age. The rehiring rate per retired staff in fiscal 2012 was 76%.

Improvement of the System for Re-hiring Former Employees
A career forum was held

Implementation of Measures for Women Promotion (Career Development)
The company believes that we should support career development
for women at each life stage to promote their success in theircareers. We will continue to support them by utilizing the “careerplan sheet,” which enables women to design their mid- and longterm career plan by themselves, and eventually with the company’s“virtual role models,” which is currently being developed using thepersona scenario method (a marketing method).

Lion has introduced a scheme to re-hire former
employees, aiming to allow them to be active again
using their various experience gained from theircareer, lifestyle and expertise.

Voices from Participants
Akiko Kawashima, Production Engineering Research Center

I attended the activities of the Diverse Human Resource
Promotion Committee. This is because I wanted to think

Support for Transfer of Couples Working for Lion

about a plan, which would develop my strengths by

Lion has systems that support households of couples, who both workfor Lion. When one partner is transferred within Japan or overseas,with prior registration the spouse can choose from the following three
options: 1) accompany the transferred spouse while putting his or her
own career on hold; 2) leave the Company to accompany the spouseon the premise of being re-hired within five years; or 3) change his or
her own work location to the place where the spouse was transferred.

simulating my own future life stages such as childcare or

Employee Motivation Consultation Center

participants. Use of the sheet

Lion has the Employee Motivation Consultation Center, whichhelps employees develop a positive approach to their careers.

22 CSR Report 2013

nursing care, and to provide tools, which could be shared
among the employees with similarneeds. I completed my career plan
sheet, which would make the mostof my abilities after discussions
with outside advisors or otherenabled me to clearly understandmy mid- and long-term targets.

BirthMaternity leave

・Paid leave from six weeks prior to birth to eight weeks after birthSpecial leave
・Two days paid leave (bonus leave)(childbirth by spouse)

Goal 4 Within the period of the action plan, implement measures
for supporting employees to strike a good balance between
work and childcare from viewpoint of career development.
→A presentation of childcare support programs including a symposiumby the employees with childcare experiences was held in 2012.

Goal 5 In 2011, introduce an overseas transfer support
system for married couples both working for Lion.
→The system for domestic and overseas
transfer was introduced in June 2011.
Goal 6 Within the period of the action plan, introduce
a telecommuting system for employees meeting
requirements prescribed by the Company.
→Introducing on a trial basis in 2012.

Childcare
NursingChildcareleave

・Up to 18 months leave until the child is three years
old (paid leave for the first successive two weeks)・Additional childcare leave for fathers after using
childcare leave within eight weeks of their child’s birth

Reduced hours
for childcare

・Up to two hours/day reduction in theworkday until the child finishes first grade

Employees Data (non-consolidated)

Exemptionfrom overtime

・Employees with a child under primary school
age can be exempted from overtime work

Regularemployees

Child sickness
leave

・Employees with children under primary school age may
take paid child sickness leave by half-day units (paid leave)
・Five days/year for one child or ten days/year for two or
more children that are preschool age

Nursing care
Leave and reduced hours
for nursing care

・Up to 93 days available to nurse eachchild as necessary combining nursing careleave and reduced hours for nursing care

Nursing careleave

・Five days/year for one child or ten
days/year for two or more children
provided by day for nursing care

Accumulated leave ・ Use accumulated annual paid leave that has
expired (up to 60 days) for nursing a close relative(nursing of close＊In addition to the above, a system enabling restriction of work hours for childcare
relative)or nursing care purposes has been introduced in accordance with the law.

＊In
 addition to the above, a system enabling restriction of work
hours for childcare or nursing care purposes has been introduced inaccordance with the law.

Lion and CSR
Organizational
Governance

Goal 2 In 2011, raise the age of child applicable to“Exemption from overtime for childcare” from“three years old” to “under primary school age.”→The new system was introduced in June 2011.
Goal 3 In 2011, modify “Child sickness leave” to allow
employees to take the leave by half a day.
→The new system was introduced in June 2011.

＊Next Generation Support Act Phase 4 Action Plan
URL http://www.lion.co.jp/ja/csr/employee/work_life/

Male
FemaleMale
New employees
FemaleNumber of people
Re-hired
retirees%
Temporary employees (number of people)
Female employee ratio (%)
Number of people
Femalemanagers%
Disabled
employees
Childcareleave users
Reduced working
hours for childcare

2010
1,873
583
49
25
147
5.6
255
23.7
34

2011
1,842
597
47
23
142
5.8
289
24.5
37

2012
1,828
614
51
24
137
6.0
295
25.1
42
6.2

5.1

5.5

Number of people

44

43

42

%

1.8

1.8

1.8

Male

3

Female

35

4
25＊

29

Male

0

0

0

Female

48

49＊

49

6

Presentation of childcare support programs from the Perspective of Career

Average overtime per month (hours)

9.9

11.2

12.0

Annual paid leave used (%)

51.9

54.1

46.2

A presentation of childcare support programs was held to support
career development for the employees during life stages where
motivation could be decreased. The meeting was productive: forexample, an explanation of the supporting system was provided; aLeaving a job with in three Number of people
years of entering Company
%

5

1

1

2.6

0.5

0.5

※ “New employees” includes new employees hired mid-year.
※ Data as of December 31 of every year
＊ Data was modified after scrutiny.

Human Rights

Goal 1 Have seventeen or more male employees takechildcare leave during the action plan period.
→11 male employees took childcare leave. Anotherone of sales representative division took has
been taken the leave for a year from March 2012.

Labor Practices

Support for Childcare and Nursing Care

“Kurumin” logo
recognizing support for
the next generation

The Environment

Lion has proactively worked on reinforcement of measures forchildcare and nursing care. As a result of childcare-related support
enhancements and making the programs known to employees
in line with an action plan based on the Act on Advancementof Measures to Support Raising Next-Generation Children, theratio of female employees taking childcare leave has been 100%in recent years. The number of male employees taking childcare
leave has also increased, even among varying job types.
The action plan is formulated through joint deliberation by laborand management, as well as consultation with employees whoare parents. Since April 2011, activities have been promoted inaccordance with Phase 4 action plans.

Period: April 2011 to February 2015

Fair Operating
Practices

Support for Childcare and Nursing Care

Next Generation Support
Act Phase 4 Action Plan

Consumer Issues

Lion strives to build an environment where employees can work
dynamically and deliver results, whilst placing value on balance
between work life and private life.
In 2013, in addition to the management of long overtime up
until now, Lion develops better working environments throughstrict controls on working hours under the new personnel
system and the implementation of a labor-management project,which improves business efficiency and reduces overtime labor.

symposium by the employees with childcare experiences was held;a workshop of thinking about future careers of the participants
using the career plan sheet; the close role models for childcare wereshared; and a woman network was established.

Community Involvement
and Development

Promoting Work-Life Balance

CSR Report 2013 23

Labor Practices

Employee
Maintaina HealthsoundManagement
management system
Based on the concept that employees’ good health as athat is continuously
management foundation to support sound corporate growth,trustedby society
Lion
has conducteda variety of measures such as lifestyle habit
improvement, oral health, mental health for the employees’ healthmanagement and improvement. Especially as a part of our detailed
health management activities, each employee receives consultation
by industrial physicians and nursing staff after health checkups. We
follow the Guideline for Health as our core basic principle.

Guideline for Health“Life. love.” means valuing one’s entire life. We desire
to be of help for people each and every day. This
goal would be achieved foremost on the premise of“health.” The good health of our employees who are
the Company’s partners is not only the foundation ofhappiness of our employees and their families, but also
the foundation of management, which supports healthy
corporate growth. Management and employees will
work together to conduct proactive initiatives toward
maintenance and promotion of good health, aiming
to be a healthy and vigorous company which cancontribute to people each and every day. On the basis of
this idea, we will conduct health management activities
in compliance with the guidelines shown below as wellas with various laws and regulations, while fully taking
into account privacy protection.
1. Improve health management ability
While employees recognize their own responsibility for
health management, the Company provides support
for the improvement of individual employees’ healthmanagement skills through organizational and ongoinghealth management activities.
2. Create a comfortable working environment
The Company ensures the employees’ good healththrough the creation of a comfortable working
environment where they can work with ease and trust,and pays attention to employees’ health conditions sothat they can perform their duties with vitality.
3. Promote activities for the future
Making use of Lion’s features and insights, the Company
strategically promotes health management activities withan eye towards the future, from oral health to systemic
health.
Enacted January 2012

Organizational Approach to Health Management
Lion has conducted health management activities after
discussions at a joint session called “Health Management
Promotion Committee” attended by the personnel manager
who is also responsible for health management of the company,
the health insurance society, and the health support office.
The company seeks even more effective health management
through the PDCA management based on the analysis ofpresent data, extraction of issues, and setting of approachingthemes. In the future, we will continuously make improvements
and accumulate the know-how of industrial health.

24 CSR Report 2013

Age 35 Health Seminar
Lion has held overnight hands-on seminars called “LIS21(Lion life innovation seminar 21)”every year since 2001 for
employees aged 35. We found that participants of this seminar
have a higher degree of awareness of lifestyle habits and thatthey were able to hold back weight gain five years after theseminar. As we confirmedthat the establishment ofgood health habits while still
young leads to prevention of
diseases later on, the seminarhas been effective to raise
our employees’ awareness ofhealth.
Walking as part of LIS 21

Changes One Year After LIS21 Participation
Participants

No. with changed lifestyles

%

2007

86

79

91.9

2008

91

82

90.1

2009

91

89

97.8

2010

96

87

90.6

2011

57

54

95.0

Dental Prophylaxis Program （ALOHA＊）
We have focused on the improvement of oral health byincorporating dental checkups into the annual health checkups
for all the employees since 2002. In our activities collaboratingwith the Lion Foundation for Dental Health, not only did
we improve the employees’ oral health, we also successfully
demonstrated that periodontal disease had relevance tometabolic syndrome. In the future, we will continue these
activities and enhance our approaches to the prevention of
periodontal disease and metabolic syndrome for the employees.
＊ALOHA
All Lion Oral Health Activity

Mental Health Initiatives
With our Mental Health Basic Policy established in 2004, Lion has taken
proactive measures for the mental health of our employees, aiming tocreate a working environment where each employee can work withvitality. Consultation after checkups helps each employee feel securein terms of mental health-care. In addition to in-house consultations
provided by industrial physicians, nursing staff, psychiatrists and clinicalpsychologists, we contract with an independent organization forproviding telephone consultation and counseling for employees.
Other than the consultation after checkups, a stress level check test
is available for all the employees, which is used for their self-care.
Furthermore, we have continued approaches to organizational
mental health care; for example, as a measure to make the workplace
comfortable, we provide feedback of the stress level compiled andanalyzed by section/department, which is utilized for managerial
training by full-time industrial physicians.

(cases)
20

15

16
10

10

After the explosion of other company in September 2012, we
implemented an investigation on reaction facilities for self-reactive
substances, etc. and management conditions of hazardous materials
at our domestic plants. As a result, we confirmed that operational
control was exercised based on the clear management criteria.
In the future, we will continue safety management including
operation control and facilities management and will work onsound safety of facilities by ensuring inspections and maintenanceon facilities and systematically promoting facility maintenance froma long-term viewpoint.
Number of Facility Accidents/Disasters
2008

2009

2010

2011

2012

0

0

0

0

0

5
2

0

2008

2009

2010

2012

2011

(year)

Domestic affiliated companies

Lion

Work Accident Frequency Rate ＊ in Production Division
（％）
1.2

0.88

0.84

0.9

0.72

0.6

0.74

0.85

0.72

The Environment

7

7

5

Labor Practices

6

8

0.71

0.71
0.67

0.3

0.00

0

Safety of Facilities

Lion and CSR

11

2008

Lion

2009

2010

2011

2012

(year)

Chemical industry in Japan＊Frequency rate:
…
Number of people suffering lost time injuries / Total working hours(unit: million hours)
For labor accident severity rate of production division, see thewebsite below: 
URL http://www.lion.co.jp/ja/csr/employee/prevention/

Hours without Accident at End of 2012 (Accumulation)(Unit: ten thousand hours)

Research Division

Fair Operating
Practices

In 2012, the number of accidents decreased to 11 from 12
and the number of lost time accidents decreased to 3 from5, compared to the previous year. However, in a plant of oneof our domestic affiliates, a serious accident happened witha person falling through a gap of a safety fence put up in
its production plant. Lion had been involved in continuous
improvements and had strictly complied with laws andregulations through the safety diagnosis of facilities made byoutside safety officers and a systematic risk assessment after
the accident. However, the company has further stepped up
safety measures by sequential improvements of safety fences
and handrails in all of the plants of the domestic group.
In the future, in order to make the workplace even safer, we
will reduce risk by investigating whether the structures offacilities in all the domestic plants meet our “safety design
guideline for facilities” and making improvements.

Human Rights

Number of Work Accidents (excluding commuting accidents)

14

Occupational Safety

Organizational
Governance

Lion has proceeded with the preparation for various
natural disasters including the earthquake that directly
hits the Tokyo metropolitan area and has enhanced
disaster prevention schemes. In 2012, to address theissues from the emergency drills conducted in 2011, we
modified our earthquake manuals established by thewhole domestic group and each zone. We held in 2012
the drills such as safety confirmation drills, evacuation
drills, disaster leadership drills, firefighting drills, andjoint drills with municipal firefighters; and we confirmed
the effects of those drills.

Consumer Issues

Based on the principle of “safety first,” Lion has established its unique“Health, Safety and Disaster Prevention management system” forgroup companies including domestic affiliates, which added its own
disaster prevention measures to the “Occupational Safety and HealthManagement System” of Japan’s Ministry of Health, Labour and Welfare.
We set up a Disaster Prevention Meeting, which consists of representatives
from production, R&D, administrative as well as sales divisions, where
employees and managers strengthen and improve measures for safetyand disaster prevention in cooperation. Through the meeting, companywide policies, targets (zero serious accident and disasters), annual plans
and achievements are managed and promoted.
At each business location, the Health, Safety and Disaster Prevention
Committee organized in accordance with laws, and mainly promoted
activities such as resolving issues unique to each business location, andreflecting employees’ opinions. In addition, a chairperson of the Disaster
Prevention Meeting audits individual business facilities on a regular basis.

Response to emergencies

Production Division

Hirai

Honjo

Odawara

Chiba

OdawaraOsaka

Akashi

819

86

114

348

386

292

159

Community Involvement
and Development

Safety and Disaster Prevention Initiatives

CSR Report 2013 25

The
Environment【Ideal Vision】

Maintain a tosoundContributeamanagement
systemsustainable society
as an
that
is
continuously
environmentally advanced
trusted by society
company

Presentation at
the environmental events

Basic Approach
In 2011, we announced “Vision 2020,“ our new
management vision. As the Company-wide policy to aim at
becoming an “Environmentally advanced company,“ whichis included in the Vision 2020, we formulated “Eco Vision
2020” as the new environmental objective. We will workon environmental awareness for customers and reform theirconducts through our products, in addition to achieving thetargeted values with the aim of “Realizing a Low Carbon
Society,“ “Realizing a Sound Material-Cycle Society,“ and“Harmony with Nature.” For related information, see p6-9

Environmental Management Structure
Lion has established an Environmental Action Promotion
Committee comprising members from production, administrative,
sales, R&D as well as headquarters staff divisions, in order tocoordinate cooperation on environmental management by all
employees. The committee reviews Company-wide businessactivities from an environmental protection perspective andtakes steps to ensure legal compliance and setting of voluntarystandards and targets in addition to ascertaining progress.
Environmental Management Structure
Executive Committee
Environmental Action Promotion Committee
Chairman : Director in charge
Secretariat : CSR Promotion Department,
Environmental Conservation OfficeMembers of Committee :Chiefs of production, administrative, sales, R&D and
headquarters staff divisions

Environmental Guidelines
Lion’s Environmental Guidelines adhere to the spirit of
the Lion Group Charter for Corporate Behavior, whichstates: “We shall play a positive and active role in creatinga sustainable society, harmonizing economic development
and environmental protection.” In 2013, we revised the
Guidelines, in accordance with the formulation of “EcoVision 2020.” It more clearly expresses our attitude for“Realizing a Low Carbon Society,” “Realizing a Sound
Material-Cycle Society,” and “Harmony with Nature,” aswell as the stance of efforts overseas.

Environmental Guidelines
Lion will act voluntarily and proactively to reduce its environmental burden to theglobal environment in all processes of business activities from the developmentof products to the procurement of raw materials, production, distribution, sales,
use by customers, as well as disposal. This will be done with due consideration to“realizing a low carbon society to prevent global warming,” “realizing a soundmaterial-cycle society with maximum usage of recycled resources;” and “harmony
with nature to conserve people’s health, natural ecosystems and biodiversity.”(1)Aiming for a Sustainable Society
Promote an environmental management system, and through ongoing
maintenance and improvement of that system, protect the global
environment.

(2)Complying with Legal and Other Requirements
Comply with the system of legislation, regulations and arrangements
pertaining to environmental protection, and establish and implement
voluntary standards of conduct.

(3)Setting and Verifying Implementation of Environmental Objectives and Targets
Correctly understand the environmental impact of corporate activity,
and as far as technically and economically possible, establish objectives
and targets for improvement, while at the same time formulating,
implementing and regularly verifying the status of implementation ofan environmental management program.

26 CSR Report 2013

Company-wide Manager of environment management(Chief of Environmental Conservation Office)Production Division
Manager ofenvironment
management

Administrative / Sales
DivisionManager ofenvironment
management

R&D Division
Manager ofenvironment
management(General manager of
production management
department)(General manager ofgeneral affair department)(General manager ofcorporate management
department)

Each plant

Each office

Each laboratory

Affiliatedcompanies(4)Developing Environment-Friendly ProductsContinue aggressively with product development in tune with Lion’s
own “Lion Eco Standards,” and in light of lifecycle assessments.

(5)Reducing Environmental Impact Together with Business Partners
Strive to reduce environmental burdens at all stages from purchasethrough provision of products to customers, in cooperation
with suppliers of materials, outsourcing contractors, and sales
companies.

(6)Coexistence with Nature
Conduct business activities while taking into account biodiversity
and air and water environments, and proactively address naturalenvironment protection activities.

(7)Enhancing Environmental Protection Activities Based on
Uniform Understanding of the Guidelines
Disseminate the Guidelines to all Lion employees, including thoseof its affiliated companies, raise an awareness of environmental
protection among them and bolster environmental management
activities throughout the entire Lion Group.

(8)Promoting Disclosure of Information
Seek to maintain and promote communication with stakeholders
involved in Lion’s businesses. These Environmental Guidelines arefreely available to anyone upon request.

Revised January 1, 2013

The director of the board responsible for CSR, who chairs theEnvironmental Action Promotion Committee, carries out executive
environmental audits covering plants of Lion and affiliatedcompanies on a regular basis together with safety audits.
In 2012, we implemented executive environmental audits for Lion
Osaka Plant and Lion Akzo Yokkaichi Plant, and confirmed that
their environment management was maintained adequately.

Lion and CSR

The purpose of Lion Group’s environmental management system is
to identify, evaluate and rectify adverse effects on the environment
associated with our business activities, products and services, andto facilitate ongoing improvements in our environmental protection
activities. Ongoing improvements will be achieved through theimplementation of the plan-do-check-act (PDCA) cycle in line with
the Environmental Guidelines.
Systems for environmental management and reporting activities havebeen enhanced with the aim of global environmental responses.
Data on overseas affiliated companies is available on our website.

Executive Environmental Audit

Organizational
Governance

Environmental Management System＊Environmental Management System
URL http://www.lion.co.jp/ja/csr/env/guide/

ISO14001 Certificate of Registration

Internal Environmental Audits
Employees who are qualified as internal environmental
auditors after undergoing appropriate training routinely
implement internal environmental audits to verify total
conformity to ISO14001 requirements and conduct
management reviews. Individual departments takeresponsibility for rectifying any non-conformity andreporting improvements to a responsible general manager.

Lion complies with all environmental laws, ordinancesand other regulations, and we ensure thoroughmanagement according to our own independent
standards.
Waste treatment contractors must satisfy criteria
stipulated in waste management regulations in order
to be selected by waste supervisors at each site. The
premises of waste treatment contractors are inspected
on a regular basis to verify conformity to the criteria.
In the past, we have used equipment containing
polychlorinated biphenyls (PCB). This equipment has
been managed securely in line with legal requirements,
and gradually disposed of through Japan Environmental
Safety Corporation (JESCO).
Wastewater is constantly managed to ensure thatstatutory limits on wastewater are observed. This involves
improving the reliability of wastewater processing
facilities, strengthening and ensuring management
during processes, and conducting emergency drills.
Adjustments are also being made to frameworks in linewith revisions to related laws — namely, the Act on
the Rational Use of Energy, Act on Promotion of Global
Warming Countermeasures, Act on Confirmation, etc.
of Release Amounts of Specific Chemical Substancesin the Environment and Promotion of Improvements to
the Management Thereof and Act on the Evaluationof Chemical Substances and Regulation of Their
Manufacture, etc.
There were no infringements resulting in a fine or otherpenalty during 2012.

The Environment

Legal ComplianceFair Operating
Practices＊ISO14001
A global standard governing voluntary environmental efforts by organizations

Executive safety and environmental audit

Consumer Issues

Lion acquired ISO 14001 certification covering all its plants inJuly 2001. Certification was reviewed and extended by theJapan Management Association Quality Assurance Registration
Center (JMAQA) at three-year intervals, in May 2010. Through amaintenance examination taken in 2012, it was verified that theframeworks to maintain management systems were properly
operated, conforming to requirements of the standard. Basedon the results of the examination, continual improvements
are made to management systems and environmental
protection activities based on audit results. Also in relation toplans of affiliated companies in and outside Japan, Lion has
obtained ISO14001 certifications, and operated environmental
management systems in compliance with ISO14001.

Community Involvement
and Development

Status of ISO 14001 Certification

Labor Practices

Human Rights＊Data on environmental burden of affiliated companies’ plants (overseas)
URL http://www.lion.co.jp/ja/csr/report/pdf/overseas.pdf

CSR Report 2013 27

The Environment【Ideal Vision】

Overview
Environmental Impact of Lion’s Business Activities
Maintain
a ofsoundmanagement systemthat is continuously
EnergyEmissions into atmosphere
trusted by society
92,689 million Wh（△4,021）

Other fuels

Total energy usage

PRTR chemical substances

25 tons

41,222 kL

CO2 emissions

In Japan

74,000 tons

(LION Group)（△7,000）

Overseas

In Japan（ 23,000）

PRTR chemical substances

Water resources
1,248,000 m

Industrial water used

823,000 m

3

In Japan

In Japan（5,000）3（△56,000）

72 tons（ 31）

721,000 m

3（18,000）

COD

12 tons

PRTR chemical substances

0 tons（ 1）

Wastewater（ 0）

186,000 m

3（△5,000）

7 tonsCOD（ 0）

Total waste generation

9,032 tons

Recycled waste

7,916 tons

（2,000）173 tons

PRTR chemical substances

196 tons

Total waste generation

4,774 tons

Recycled waste

2,496 tons

Final waste disposal

2,171 tons

（△12）
（△66）
（196）
（307）

（△130）In JapanCO2 emissions

18,674 tons（△129）

Products
In Japan

Waste packaging

36,308 tons

Overseas688,523,000 m（1,495）

Logistics

Customers

Water used

（754）

Final waste disposal

3

Logistics

In Japan

6 tons（△20）

SOx emissions

687,000 m

Overseas

Overseas（△51,000）

425,000 m

Waste packaging

7,838 tons（△495）

3

Figures in parentheses indicate change from previous year

28 CSR Report 2013

（11,112）

NOx emissions

Waste
3

Tap water used

Water used（△1）

95,166 tons

Emissions into water
338,000 tons

Water used

（ 1）

Wastewater(household articles only)

Water used

42 tons（△11）（△4,223）

Materials
Raw material（3,286）

NOx emissions

26 tons（△4,878）(crude oil equivalent)

96,411 tons

SOx emissions

20,752 kL(crude oil equivalent)Overseas

In Japan（△6,936）

Overseas

In Japan

Electricity

CO2 emissions

44,594 kL

Total energy usage(crude oil equivalent)（205）

Business area
costs

Investments

Expenses

Pollution prevention

47

263

Global environmental protection

272

3,887

0

392

1,648

5,314

Resource recycling
Eco-friendly products

Upstream/
downstream costs

Containers and packaging recycling

--

546

Administration costs

ISO14001 registration, Environmental education

0633

R&D costs

Development of eco-friendly products, etc.

230

1,347

Social activity costs

Environmental improvement measures, Donation

032

Environmental
remediation costs

Tax imposed on pollution performance, etc.

2

8

2,199

12,422

Domestic Lion Group Total

Eco-Efficiency

150

356

100

91％

Outcome of business activity

400

375

376

83％

83％

300
83％

79％

(calculated using LIME)

0

2008

Eco-efficiency

2009

2010

0
2012 (Year)2011

Environmental impact value※ E nvironmental impact value is calculated using the LIME2 integrated
coefficient list (July 1, 2010 version).

Environmental Communication
Participation in Environment-Related Events

Eco First Companies Association Activities

Lion wants many people to know about its
environmental activities. At Eco-Products 2012, one
of Japan’s largest environmental exhibitions in which
we participated for the sixth time, we introduced
our efforts for reducing environmental burdens
with a large-sized lift-the-flap book, and made apresentation on water environment conservation
activities and initiatives for biodiversity.
We also participated in environment-related
exhibitions held in areas near our businesslocations, including the Sumida Environment Fair
2012 and the Ecomesse in Chiba 2012.

The Eco First Companies Association*, an independent
organization run by companies recognized by Japan’s Ministry of
the Environment (MOE) as front-runners in environmental action,
held a “Ecotowaza (Eco Proverbs) Contest about human- andearth-friendly energy“ supported by the MOE. Winning entries
were commended at the venue of “Eco Products 2012.”
The Association held the “Environmental Message EXPO2012”
open widely to the public, in which environmental activities ofparticipating companies are announced, summarized in a message
consisting of approximately 13 letters. It also conducted activities incollaboration with the environmental administration, for example,
participating in “Eco-Life Fair 2012” hosted by the MOE.
＊Eco First Companies Association
URL http://www.eco1st.jp/

Lion’s exhibition booth at Eco-Products 2012

Presentation at “Environmental Message EXPO2012”…

The Environment

100

Environmental impact value※ Environmental impact value: The environmental damage expressed inmonetary terms calculated using a Japanese life cycle impact assessment
method based on endpoint modeling — LIME.

200

50

Fair Operating
Practices

Eco-efficiency ＝(net sales)

399

370

Eco-efficiency

Labor Practices

Eco-Efficiency and Environmental Impact Value（%）Environmental impact value (compared to 2005)

Consumer Issues

Lion calculates eco-efficiency every year according to
the following formula to evaluate the efficiency ofcorporate activities in terms of environmental impact.
Efforts are then made to improve eco-efficiency.

Organizational
GovernancePrincipal activities

Human Rights(million yen)
Category

Community Involvement
and Development

Each year, we tabulate and disclose environmental
protection costs, environmental protection benefits,
and economic benefits (actual benefits) associatedwith environmental protection activities of theentire domestic Group companies based on Ministryof the Environment guidelines.
(Tabulation period: January – December 2012)
As for the environmental protection costs in 2012,
investments and expenses increased respectively
by approximately 2.2 billion yen and approximately
12.4 billion yen. This is because we newly invested
in production facilities for super-compact liquid
laundry detergent as more production switchedfrom powder to liquid laundry detergents.

Lion and CSR

Environmental Accounting

CSR Report 2013 29

The Environment【Ideal Vision】

PollutionaPrevention
Maintainsoundmanagement
systemTotal Waste Generation by Lion Group
that is continuously
In 2012, total waste generation of the domestic Group companies
trustedby society
increased from a year earlier due to the disposal of products damagedby the disaster, disposal of waste gas cooling water arising from thecessation of incinerator, and the increase in waste from processes due tothe expansion of detergent materials production volumes. Accordingly,
while decreasing total waste generation by 49% compared to the levelof 1990, we failed to achieve the target of a 55% reduction or morecompared to the level of 1990. We will strive to reduce more waste
generation, through improving and reviewing production processes.
Total Waste Generation (domestic Group companies)(tons)
20,000sites have already achieved zero emissions. However, as one
production site that handles ammoniac sludge, which generates
odor during disposal, has not achieved zero emission, the target
for 2012. Therefore, zero emission for the entire domestic Group
companies could not be attained. We will focus on attaining zero
emissions status in the entire domestic production sites by 2014.
Final Waste Disposal (domestic Group companies)
7,580(tons)
8,000 （100％）
7,000
6,000
5,000
4,000
3,000

Keidanren Voluntary Action Plan 2015 Target

2,000
17,646（100％）

830
（11％）

1,000
0

15,000

1990

291
（4％）

202
（3％）

185
（2％）

2009

2010

2011

2007

173
（2％）
2012 (year)

Final Waste Disposal (overseas Group companies)

10,000

8,111
（46％）

8,432
（48％）

9,032
（51％）

8,278
（47％）

(tons)
2,500

2,399

2,302

2,082

2,171

2,000
1,500

5,000
1,000
500
0

1990

2009

2010

2012 (year)

2011

Total Waste Generation (overseas Group companies)(tons)
5,000
4,364
4,000

4,577

4,774

3,780

2,000

1,000

2009

2010

2011

2012

(year)

Final Waste Disposal by Lion GroupIn 2012, the domestic Group companies reduced final waste
disposal by 98% compared to the 1990 level. Accordingly, since2007, we have continuously attained the target set by Keidanren(the Japan Business Federation), a reduction of 89% or more by2015 compared to the 1990 level.
All of Lion’s four plants also attained zero emissions status in
2002, and have maintained that status since then.
Among domestic affiliated companies, 5 of 6 production

30 CSR Report 2013

2009

2010

2011

2012

(year)

Production Activities Conscious about Air and Water Quality

3,000

0

0

Lion also implements voluntary initiatives for reducing emissionsof chemical substances that cause air pollution, including nitrogenoxides (NOx), sulfur oxides (SOx), particulate matter, and volatileorganic compounds (VOC). We also strive to reduce COD withimprovement in reliability of wastewater processing facilities andperiodical maintenance.
Data on management of chemical substances, including
notifications in compliance with the PRTR system is summarized
in site reports for each business location*, and available on Lion’s
website. In 2012 in Japan, we reduced total PRTR substanceemissions and VOC emissions respectively by 54% compared to
the 2005 level (target was set with substances determined before
the revision of law), and by 82% compared to the 2000 level. As aresult, we achieved the 2012 targets for both of them (reduction by
45% or more compared to the 2005 level, and reduction by 75%
or more compared to the 2000 level).
We will continue to work on measures to reduce total PRTR
substance emissions (a target was set with substances determined
after the revision of law) and VOC emissions respectively by 15% or
more, and by 25% or more compared to the 2010 level, in 2014.
＊Site Report
URL http://www.lion.co.jp/ja/csr/report/

Lion keeps a constant close watch on water usage andwastewater volume and works to reduce water usage
through cyclic use and lower environmental impact. In Japan,
while we took measures to reduce the use of in-processwashing water, we failed to achieve the target in 2012 of a
20% reduction or more compared to the 2005 level. This isbecause the usage of in-process washing water increased
from a year earlier due to the impacts from higher production
volume of products that use more washing water, which
resulted in only a 12% reduction compared to the 2005 level.
Further efforts will continue to be made for protecting water
resources through process improvement, as well as the reuseof recycled plant effluent.
In addition to a reduction in water usage in business activities,
we will work to reduce water usage by customers using our
products at home through the development of water-saving
products.

Use and Disposal

Provision of safety Provision of
information during information on
safety and handlingtransportationof chemical products

Sustainable Use of Resources

Water Usage, Wastewater Volume, and COD＊ (domestic Group companies)

Switching from Petroleum to Botanical Resources
Methyl ester sulfonate (MES) and methyl ester
ethoxylate (MEE), unique surfactants developed
by Lion, are raw materials of detergents derived
from renewable plants, which can contribute to the
reduction of CO2 emissions.
After use, microbes in the environment decompose
surfactants including detergents into CO 2 andWater. As plants grow up, absorbing CO2 in theatmosphere, when surfactants made from plantbased ingredients are decomposed, they do notrelease any additional CO2 into the atmosphere (theyare carbon neutral). We will continue to work on theuse of plant-derived materials.

（1,000m3）Water usage / Wastewater

COD (tons)
100

2,000

1,500

1,000

500

1,509

1,414

820
27

1,320

1,337

75

1,299

1,248
50

757

690

730

703

721

12

10

11

12

2009

2010

2011

0
2012 (year)

21

25

0
2005

2008

Water usage

Wastewater

COD

Water Usage, Wastewater Volume, and COD* (overseas Group companies)（1,000m3）Water usage / Wastewater

COD (tons)

1,000

20

900
800

Carbon Neutrality

700

Light Energy

CO 2
Photosynthesis

No increase
in total CO 2

600

O2

300
200

15

687

684

637
558

500
400

10

11
7

6
204

172

7
190

186

100
0
2009
Water usage

Plant-based
ingredients

2010

2011

Wastewater

COD

2012

5

0
(year)＊ Chemical Oxygen Demand (COD):
An indicator of water contamination measuring the amount of oxygen
required to oxidize and break down organic substances in water.
Released into air

Green Purchasing

Product made fromplant-based ingredients

Biodegradation

Labor Practices

Measurement
and reduction ofchemical
substance
releases

Transportation

The Environment

Safety verificationand management ofchemical substances
contained in raw
materials

Production

Fair Operating
Practices

Product Development

Green purchasing of office supplies used by
employees Company-wide is being advanced byexpanding the list of available items. The green
purchasing ratio in 2012 was 81% (82% in 2011).

Consumer Issues

Lion’s Chemical Substance Management

Community Involvement
and Development＊Appropriately Handling Chemical Substances
URL http://www.lion.co.jp/ja/csr/env/prevention/

Lion and CSR

Chemical substances are indispensable for people to lead comfortableand fulfilling lives. Failure to properly manage chemicals, however,can result in accidents that put human health and ecosystems atenormous risk. In addition to compliance with related laws andregulations, Lion strives to ensure strict management of chemical
substances at all stages from product development through to use
and disposal in accordance with our own independent standards.

Organizational
Governance

Effective Use of Water Resources

Human Rights

Appropriately Handling Chemical Substances＊

CSR Report 2013 31

The Environment【Ideal Vision】

Climate Change
Mitigation and Adaptation
Maintaina soundmanagement
systemReducing CO2 Emissions
from Business Activities
that is continuously
Lion worked to reduce CO2 emissions through persistenttrusted bymeasuressocietyenergy-saving
in addition to making laundry
detergent more compact, a review of production process by
the Production Division, and introduction of energy-saving
equipment during facility renewals. Furthermore, the entire
Company including Administrative & Sales Division andR&D Division advanced activities relating to the Challenge
25 Campaign – a national movement for the preventionof global warming promoted by Japan’s Ministry of theEnvironment. However, as CO2 emission factor in relation toelectric power of each electric company increased due to a
prolonged shutdown of nuclear power plants, CO2 emissions
in 2012 increased from a year earlier, while decreasing 33%
compared to the 1990 level. On the other hand, the target
for 2012, a reduction by 30% or more, was achieved.
We will aim to reduce CO2 emission per unit sales by 23%
compared to the 2010 level (39% compared to the 1990
level on an absolute quantity basis) in 2014.
While CO2 emissions overseas increased year on year withthe expanded production volume, we attained a year-onyear 3% reduction of the CO2 emission basic unit. We willcontinue to strive to reduce the CO2 emission basic unit by
1% or more every year.
CO2 Emissions Reductions and Targets (domestic Group companies)

Lion focuses on ways to reduce CO2 emissions generated
after product use through its product-related research anddevelopment activities. Specifically, we have worked on
replacing petroleum-based surfactant ingredients with plantbased ingredients that do not lead to an increase in CO2.
→関連情報p□□参照
For related information, see p.31
Combining emissions from business activities and emissions
generated after product use, our total CO2 emissions
decreased 52% in 2012 compared to the 1990 level.
Accordingly, we attained the target of a 50% reduction
compared to the 1990 level, of which we assured theMinistry of Environment as an Eco First Company.
We will strive to reduce both CO2 emissions from businessactivities and emissions generated after product use,
including overseas Group companies.
Total CO2 Emissions Derived from Business Activities andProducts (domestic Group companies)(tons)
319,385
350,000（100％）

300,000
250,000

175,834
163,548

200,000
150,000100 ％

174,551

154,035

（51％）

（55％）

57,81069,198105,738

105,353

93,12596,411

2009

2010

2011

2012

144,915（45％）
51,790100,000（48％）
57,624

143,551
50,000(tons) Energy-derived CO2 emissions
150,000

Reducing CO2 Emissions after Product Use

0

1990

125,000
73％

100,000
75,000

Product-derived CO2 emissions
65％

67％

61％

60％

143,551

Initiatives in Logistics
105,353

50,00096,411
93,12525,000
0
1990

2010

2011

2012

2014
target2020 (year)
target

CO2 Emissions Reductions (overseas Group companies)(tons) Energy-derived CO2 emissions
125,000

95,166

100,000

75,00081,88784,0542010

2011

74,15150,00025,0000
2009

32 CSR Report 2013

CO2 emissions from business activities

2012 (year)

Lion works to reduce CO2 emissions and specific energy
consumption through efforts to improve logistics
efficiency, such as improving the transport-loading
rate and implementing joint deliveries with othermanufacturers. We are also pursuing modal shifts fromtruck transportation to transportation by rail or ship.
In 2012, the modal shift rate for all traffic volume was
22.6% (19.9% in 2011), and 72.1% (66.3% in 2011)
for long-distance transport over 500km.
As a result, we reduced our total CO2 emissions fromlogistics by 0.7% from the previous year to 18,674
tons. Furthermore, with a reduction of specific energy
consumption by 1.6% from a year earlier, Lion's
target of a year-on-year reduction of 1% or more wasachieved.
We will continue to make efforts for reducing CO2
emissions in logistics, with the goal of reducing specificenergy consumption by 1% or more year on year.

Biodiversity Conservation Activities at Each Business Location
Alongside business activities, Lion engages in activities like the protection of rare species. Employees participate in these
activities as volunteers, and that experience makes them more aware of environmental matters as they go about their jobs.

Breeding of Sakawa River System Killifish

Construction of a Biotope

Support for Sea Turtle Protection

The Odawara Plant registered witha propagation program for theendangered Sakawa River system
killifish in 2003 and breeds the fishon the plant premises.

On the premises of Chiba Plant,
employees completed the constructionof "Chiba LEOTOP", a handmade"Biotope". They also challenged to
do rice planting and harvesting withthe aim of creating Satoyama, an
undeveloped woodland near populatedarea, in Chiba.

Under the guidance of the nonprofit
organization Sea Turtle Association ofJapan, Osaka Plant plays a lead role inactivities to protect the endangered
loggerhead sea turtle.

Organizational
Governance
Human Rights
Labor Practices
The Environment

As almost all of Lion’s products end up being discharged into rivers, streams and other waterways after use. We assess this during thedevelopment stage to confirm that it is safe for the environment. In order to check that the environment has not been harmed, we also
participated in surveys on the concentration offour kinds of surfactants in rivers near Tokyo and
Edogawa River
Arakawa Chisuibashi
Osaka, as well as in ecological risk assessments
Tamagawa River(four times a year), which are implemented by
the Japan Soap and Detergent Association. Thusfar, studies have found that the risk of wildlife
Kanamachi
Hamura Seki
Sasame Bridge
being harmed is extremely low.
As surfactants “MES” and “MEE” areTokyo metropolitan area
substances developed by Lion, we have
Tamagawara bashi
investigated and assessed the concentrationof these in the same public water areas, andDenenchofu Seki
verified that their impacts on ecological systems
Hirakata Ohashi
are immaterial.
Lion is not the only organization engaging in Yodogawa River Osaka
Sampling points
safety assessment and confirmation. Besides
acquiring and applying the latest information River water sampling points
latest data of river environment monitoring by Japan Soap and Detergent Associationand technology available in Japan and ＊TheURL http://jsda.org/w/02_anzen/3kankyo_15.html
overseas, we disseminate our own information,
contributing to safety advancements.

Fair Operating
Practices

Surveying Environmental Impact

Consumer Issues

Lion has assumed a leading role in tackling water environmental issues such as pollution and eutrophicationof waterways linked to the use of detergents, and has considered biodiversity conservation at each stage fromraw material procurement to disposal.
We will make efforts putting first priority on the consideration of biodiversity and the water environment.

Community Involvement
and Development

Approach to Biodiversity Conservation

Lion and CSR

Biodiversity Conservation

CSR Report 2013 33

FairOperating
Practices

vision】【Ideal Vision】

Maintain a social
sound
Promotingmanagement activities
systemresponsibility
that is continuously
throughout
the value
trustedbysociety
chain

Basic Approach
In the Lion Charter for Corporate Behavior, Lion prescribed to thecompliance with all laws and regulations, observing the spirit ofinternational rules; compliance with public rules; fair, transparent
and free competition, and fair trade; and sustain a healthy andnormal relationship with political and administrative organizations.
In the Behavioral Guidelines, the Company has also stipulated
for the respect of others' intellectual property rights and banned
the inappropriate acquisition or use of information or rights, andcompliance with relevant laws and regulations by suppliers.
The Lion Charter for Corporate Behavior and the Behavioral
Guidelines are available on our website for inside and outside
stakeholders. In 2009, we declared our support for the ten
principles of the United Nations Global Compact to clarify ourattitude conscious about anti-corruption.

Frameworks to Ensure Fairness of Business
The Corporate Ethics Committee, chaired by the director
responsible for corporate ethics, makes an effort to foster
compliance awareness within Lion. →For related information, see p19
Considering it important to fulfill social responsibilities together
with our business partners with a shared commitment to coexistence and co-prosperity, we have disclosed the Procurement
Principles stipulating appropriate and rational transactions incompliance with relevant laws, regulations, and social norms, aswell as procurement in consideration of social responsibilities suchas global environmental conservation.
We also implement a survey on CSR procurement in order toconfirm whether the business partners have policies in relation
to the "establishment of healthy and normal relationships with
political and administrative organizations" and "promotion ofbusiness in consideration of the environment". Furthermore, ahotline for business partners is in place. However, we know ourapproaches to the business partners are not necessarily adequate.

society, and continuously develop mutually beneficial
businesses, it is necessary to share information on CSR
activities between the business partners and for Lion toinitiate the activities.
As market demand for palm oil used for environmentallyfriendly surfactants "MES,” which is plant-derived
detergent material developed uniquely by Lion, has been
increasing, we have recognized that it is a priority issue
for us to procure and substitute more raw materials withsustainable palm oil.

Promotion of CSR Activities with Business Partners
In line with its Purchasing Activity Principles, Lion procured
raw materials and finished products appropriately.
Lion also promoted the development of a supply
chain management system. In 2008, we formulated
the Procurement Principles＊, clarifying social andenvironmental considerations. In 2009, we asked
domestic and overseas business partners to acquaintthemselves with the Procurement Principles and complete
a questionnaire.
Through the questionnaire, we required business partners
and Lion to share CSR information and expertise, as wellas cooperate mutually in order to enhance efforts we havemade thus far. Now, we are preparing CSR guidelines andreviewing systems to work with the business partners.
＊Procurement Principles
URL http://www.lion.co.jp/ja/company/about/policy

Lion's Value Chain

Raw material manufacturers(Raw materials

Lion and affiliates

Manufacturing procurement)(Manufacturing)
partners(Distribution)

Initiatives for Value Chains
For our value chain CSR initiatives, we consider
enhancing our alliance with suppliers of raw materials
and manufacturing partners to be one of theimportant issues. In order to mitigate negative effectsof our business activities on the environment and the

34 CSR Report 2013

Wholesalers(Sales)RetailersProduction volume of palm oil is steadily increasing
due to the high productivity and the ability to harvest
throughout the year. Downsides to the development of
new plantations, however, are the clearing of tropicalrainforests and the shrinking of wildlife habitats.
In an attempt to resolve such problems, Lion has beena member of the Roundtable on Sustainable Palm Oil(RSPO)＊ since 2006. In 2012, the Oleo chemical plantof Lion Chemical Co., Ltd., which is where palm oil isdelivered to, acquired a supply chain certification of
RSPO, and started to use palm oil certified by RSPO.
Aiming to switch completely to palm oil certified by
RSPO by the end of 2015, Lion will work to procure
more sustainable palm oil.

Manufacturer selection, transaction conditions, pricing
and other criteria are determined through fair andtransparent discussions. Maintaining and developing fairand friendly ties with manufacturing partners based on
coexistence and co-prosperity allows us to deliver higher
quality products to customers in a timely manner.
Conformity with the Act Against Delay in Payment
of Subcontract Proceeds, etc. to Subcontractors is
ensured through employee training. Related personnel
participate in outside seminars on an ongoing basis andprovide feedback to the others inside the Company inan effort to disseminate correct information.

* Contact details of management representative responsible for overseeing the certification process

Validity of certificate starts:
Validity of certificate ends:
Date of first RSPO certification:

20/12/2012
19/12/2017
20/12/2012

Issued by Control Union Certifications.
Meeuwenlaan 4-6, P.O. Box 161, 8000 AD Zwolle, The Netherlands.
Tel: 0031 (0) 38 426 01 00.
Certifier: Markus Fertig
Date:
20/12/2012
Certificate no: C826807CU-RSPO SCCS-01.2012

Signature of certifier:
On behalf of the Managing Director.
Control Union Certifications is accredited for ISO/IEC Guide 65:1996
Approved by the RSPO for RSPO SCCS on 03/06/2010

Page 1 of 2

Storage tanks for certified
oil at Lion Chemical Co., Ltd.

RSPO Certificate＊RSPO（Roundtable on Sustainable Palm Oil）
URL http://www.rspo.org/

RSPO Certificate
RSPO established eight principles and 39 criteria
required for sustainable palm oil production,
including “environmental responsibility andconservation of natural resources and biodiversity,”“responsible development of new plantings” and“responsible consideration of employees and of
individuals, and communities affected by growers
and mills.” Only palm oil, which is produced ina way that fulfills those principles and criteria, iscertified as sustainable palm oil.

Evaluating Raw Material Suppliers from a CSR Perspective
Lion has always sought to establish reciprocal
relationships of trust with suppliers. In recent years,
we have responded to the growing requirement for
CSR procurement by focusing on human resource
development and sending employees to participate inseminars on purchasing and procurement.
We also carry out observations of raw material supplier
plants at suitable intervals. Suppliers are selected after
taking into account social considerations in addition tosafety, environmental adaptability and quality.

Human Rights
Labor Practices

Company Name:
LION CHEMICAL CO., LTD. OLEOCHEMICAL DIVISIONRSPO member number:
4-0012-06-000-00
Company Address:
22-1, BANNOSUCHO, SAKAIDESHI, KAGAWA 762-0064
Contact manager*:
Mr. MINEO KAWASE
Contact Email:mkawase@lion.co.jp
RSPO registered parent company of which the certificate holder is a subsidiary (If applicable):
Company name:RSPO member number:

Working with Wholesalers
The foundation of Lion’s distribution policy is coexistence and co-prosperity with wholesalers. We
hold general meetings of the “Lion-kai” forum toexplain the Company’s business, marketing, and sales
strategies, as well as through opinion exchange topromote common awareness of one another’s roles inincreasing customer satisfaction. As of February 2013,
241 wholesalers were members of the Lion-kai.

Lion-kai General Meeting

Respect for Intellectual Property Rights
As a basic policy related to intellectual property, Lionhas stipulated the following provision in the Behavioral
Guidelines: “We strive to create, appropriately protect,and proactively use intellectual properties, respect
intellectual property rights of others, and avoid
improper acquisition and use of the rights.”
We established a department specialized in intellectual
property to check that the rights are properly usedwithout infringing the rights of others.

The Environment

Certificate holder information

Fair Operating
Practices

Based on an audit according to the regulations stated in the RSPO Supply Chain Certification
Systems, version November 2011 and a signed contract, Control Union Certifications herewith
certifies that the facility(s) listed below are found to be in compliance with the RSPO Supply Chain
Certification Systems, version November 2011. This guarantees that the criteria for processing RSPO
certified sustainable palm oil and palm kernel oil through one or more of the supply chain models as
stated in the RSPO Supply Chain Certification Systems have been met.

Lion teamed up with competitors in 1989 to establish Planet
Logistics Co., Ltd., for conducting joint deliveries to wholesalers.
The philosophy behind joint delivery is, “Cooperate on systems,
compete in the store.” Manufacturers compete fairly in stores, but
cooperate on logistics in order to cut logistics costs, improve thequality of logistics, and address environmental issues. At the end of
2012, 18 manufacturers were participating in the joint deliveries.
Fixed schedules, fixed volumes, bulk delivery, orderly systems
and standardization, all achieved through joint delivery, also leadto operational improvements and efficiencies within wholesale
operations.

Consumer Issues

RSPO SCCS

CERTIFICATE CODE: CU-RSPO SCCS-826807

Teaming Up with Competitors on Delivery

Community Involvement
and Development

CERTIFICATE

Lion and CSR

Fair Transactions with Manufacturing Partners

Organizational
Governance

Aiming for Sustainable Procurement of Palm Oil

CSR Report 2013 35

Consumer
Issuesvision】【Ideal Vision】

Maintain customer
a soundPursuing
management
satisfaction
bysystemcreating
thatiscontinuously
safe and trustworthy
trusted by society
products
Educational
event with Meistersof Daily Life

Basic Approach

Appropriate Information Provision

Lion carries out quality assurance activities at all stages, from thevery beginning of the product creation process until customer
consumption of our products, in order to provide products that will
satisfy our customers. Specifically, by identifying key requirements
for each stage of corporate activity — product planning,product development, manufacturing, sales, and responding tocustomers — we are constantly pursuing new heights of customer
satisfaction.
During product planning, valuable opinions received from
customers are well understood to identify customers’ needs.
During product development, the quality of developed products
is verified in respect to seven parameters such as function andperformance. Furthermore, we endeavor to provide clear, easy-toread- labeling for customers.
During manufacturing, quality is managed within each process,and products that have passed inspections are shipped withdata identifiable for each lot, which is effective for after-salemanagement.
A variety of information is relayed through explanations about our
products and providing samples to wholesalers and retailers.

In order to provide information customers need in
an unbiased and appropriate manner, we have asystem in place through which several departments
check the labeling of products and advertisements.

Labeling in Local Language
To facilitate customers’ accurate understanding about
the features of our products, we indicate usage andingredients in the local language, in compliance withlaws and regulations of the sales area.

Thai

KoreanChineseLabeling of KireiKirei Hand Soap

Flow of Product Development Incorporating Customer Opinion

Customer satisfaction maximized
Customers

Customer support
Management

Developing safe, high-quality products
1 Product planning

2 Product development

3 Manufacturing

4 SalesCustomer opinions and market survey findings arereflected in planning in the form of quality objectives
that will ensure customers are fully satisfied.

Products are developed by translating
quality objectives into technicalparameters for design quality.

Raw materials and processes aremanaged to lead manufacture of
products with consistent quality.

Product information is communicated inan accessible manner to ensureknowledge about features and usage.

All employees acknowledge customer satisfaction as the starting point for realization of a happier lifestyle. By responding to customer
opinions and making ongoing improvements to products, Lion creates products that heighten the satisfaction of customers.

36 CSR Report 2013

Designing products that will give customers greater satisfaction

Marketing research

Product Planning Meeting
Executive Committee
Organizational
GovernancePreparingproduct
proposals

Discussion/approval・Marketing
research findings

Market analysis
Customer
research・Concept
・Target quality
level

Building safety and quality into products

Deliberation on contents andcontainers

Deliberation on andchecking of labeling

Verification of quality

Outcome of development
is approved after discussion
Production Engineering Meeting❶Function/Performance❷Usability❸Safety❹Product stability❺Environmental friendliness❻Appearance (including design)❼Compliance with laws
and self-imposed standards

Outcome of development is approved after discussion.

Product Planning Meeting
Commercialization of product is approved after discussion.

Executive Committee

On completion, thesuitability of thedeveloped product isverified.

Safety assurances for
manufacturing
processes are verified.

3 Manufacturing Verifying quality in mass production
Preparations

Verification of
raw material quality

4 Sales

Manufacturing

Quality evaluation in trial manufacturing
Verification of marketability

Quality is managedin each process.

Storage (shipment)

Products are managed toensure freshness.

Providing information on product quality
Information is provided towholesalers and retailers
to ensure communicationof product features andusage to customers.

Information on products ismade available via displays,
samples, and newspapers,
television, website and othermedia.

Fair Operating
Practices

Process Safety Verification Meeting

Quality Verification Meeting
When starting development, thesuitability of quality objectives andmatters deemed crucial todevelopment are verified.

The Environment

Commercialization of product is finalized.

Consumer Issues

2 Productdevelopment

Human Rights

Planning
proposals

Labor Practices

Analysis/deliberation

Customer
opinions

Community Involvement
and Development

1 Product
planning

Lion and CSR

Developing of Safe, High-Quality Products

CSR Report 2013 37

Consumer Issues【Ideal Vision】

Approach
Safety and Reliability
Maintaina to
soundmanagement system
Lion evaluates the safety of raw materials and safetythat is continuously
during product use to ensure that our customers cantrustedby societybeat ease whenusing our products.
Safety of Raw Materials
Use of raw materials is allowed only after verifying
safety, and only after implementing sample
evaluations and a supplier survey in order to ensurespecific quality. Before use, raw materials undergo
quality inspections using parameters and testing
methods according to category—drugs and food;quasi-drugs and cosmetics; or miscellaneous.

Enhancing Information Provision to Customers
In order to support our customers’ healthy andcomfortable life, through Lion’s website and othertools we provide lifestyle related information as wellas information about how to use our products.
“The Lion Comfortable Lifestyle Laboratories,” anew point of contact for life-related information
established in August 2011, provides opinion
leaders and other relevant people with information
on health and living according to their life-stage andlife-style through seminars and events.

Safety During Product Use
Considering our customers’ various usage styles as well as
our vulnerable customers, Lion conducts safety evaluationsof products based on a policy of averting risk throughproduct design.
Evaluations check sheets are employed to confirm whether
safety has been achieved through product design, ranging
from “normal use” cases to “mistaken use” cases. Evenfor “irregular use” cases, we evaluate whether risk has
been minimized and whether the risk is acceptable. The
evaluation results are reflected in product safety, forexample with inclusion of sufficient warnings on labels
where necessary.

Educational Activities toProvide Living Information
by Meisters of Dairy LifeWe c re a t e , a c c u m u l a t e a n d p ro v i d e l i v i n g
information, for example, by periodically answering
customer’s questions on the website by four
Meisters of Dairy Life with expertise on oral care,health care, laundry and cleaning.

Scope of Safety Confirmation

Lower risk to acceptablelevel and provide warnings

Reckless use

Unforeseeable andunreasonable usage

Irregular use

Foreseeable usage, but
defying accepted norms(overly excessive use, or use
for purposes very different tothose intended)

Mistaken use

Usage not as
intended by Lion but
which must be
expected

Normal use

Usage as intended
by LionRequired Safety
Assurance

Guidance and advice from after simulating various situationsof use is provided through our Quality Verification Meetings,
which comprises of members from related divisions. The
aim is to prevent damage caused by product use and lapses
in the safety confirmation process.
In preparation for product trouble possibly occuring,
we have in place an internal system to quickly takecountermeasures such as product recall.

38 CSR Report 2013

Information provided by the Lion Comfortable Lifestyle Laboratories＊Website of the Lion Comfortable Lifestyle Laboratories: 
URL http://kaiteki.lion.co.jp/

Information Security
Lion has established a number of guidelines andregulations to prevent information leaks. They area basic policy of our information management,
information management regulations, privacy
regulations, information security regulations, andguidelines for the management of information
technology and equipment. For the appropriate practiceof information transmission by employees using social
media, which is recently spreading, such as social
network services and blogs, “Lion Group Social Media
Policy＊” and basic rules were established in 2012.
Employees also undergo e-learning programs each year
to enhance their awareness for the prevention of leaks.
＊Lion Group Social Media Policy
URL http://www.lion.co.jp/smp.htm…

Responding to VOC

Improvement Case Based on Customer Opinion

Flow of Response to Customers

VOC
meeting

Data
base

Improving a Container of Top Precare for Stains on Collars and Sleeves
Boards of Directors,
Corporate Auditors,
andExecutive Officers

EntireCompany

Information
sharing system

Flow of voice

Product development and Improvement

Reply Action

Customer Support

Customers

Inquiries
Comments
RequestsVOC
daily
letterAn inside plug with sponge to apply liquid detergent evenly
on collars and sleeves is used for Lion’s Top Precare for Stains
on Collars and Sleeves. After finishing detergent, the bottle
can be reused by opening the inside plug and refilling withdetergent. However, we received customer complaints that all
the detergent spilled because the inside plug came off withthe transparent cap when it was turned
to apply the detergent after a refill.
Therefore, we marked inside plugs with▲, and bottles with ▼ in order to enable
customers to confirm that the inside plugis fastened, and added a warning label.

Organizational
Governance
Human Rights＊Customer Support
URL http://www.lion.co.jp/ja/support/

Labor Practices＊VOC
Voice of CustomerLion is working to foster a corporate culture whereby all employees
consider and act from the customer perspective.
In 2012, for the purpose of learning the importance of thinking
from the customer’s perspective, newly-appointed directors and midcareer researchers, planning division employees and a division that
conducts research and studies human behavior(142 in total) fielded
telephone calls from customers. Also in the seminars for promoted
employees, 113 employees learned the importance of thinking fromthe customer’s perspective through discussions based on customer
consultations. Customer opinions are reported at regular meetingsof individual departments in an effort to share information.
We will press ahead with efforts to reform the awareness of
employees in order to deliver products and services created from thecustomer’s perspective.

The Environment

VOC＊from our customers is recorded in a privacyprotected database, and after personal informationis removed, it is then made available to the entire
company via an information sharing system in order tomake further improvements and develop new products.
VOC deemed to have an especially strong influenceon customer satisfaction is reported to management
as a VOC daily letter, in an effort to grasp customer
perspectives, through quick deliberation andimplementation of solutions mainly by planning
divisions. In 2012, 241 VOC daily letters were issued.

Lion and CSR

Fostering a Culture of Utilizing Customer Opinion

Recall Status for Varsan Hyosatsu Jet Spray
Voluntary recalls of Varsan Hyosatsu Jet Spray for
Flying Bugs and Varsan Hyosatsu Jet Spray for
Creeping Bugs have been implemented since August27, 2007, in response to fire incidents.
As of February 28, 2013, the rate of recalled products
was 45.7%, or 1.48 million products. Please makesure to return these products if you have any.

Consumer Issues＊List of Inquiries
URL http://www.lion.co.jp/ja/support/contact

Product with marks
Warning on labels＊Casting customer opinions into shape
URL http://www.lion.co.jp/ja/support/voice/

Contact number for Varsan Hyosatsu Jet Spray returns:
Toll-free Phone : 0120-670-225
Hours : 9 a.m. to 5 p.m. (except Saturdays, Sundays,
public holidays, year-end new-year period, and summer
holidays)

Community Involvement
and Development

Around 117,000 inquiries and complaints were received
in 2012 (a 122% increase from 2011). Since January 2011
when a toll-free consultation line was opened, products
labeled with the toll-free number of the consultationline have been launched into the market. Accordingly,
with the increased number of inquiries by telephone, thenumber of entire inquiries received expanded.
Overall, 79% were inquiries about product usage,
outlets selling Lion products, product safety and so on;
11% were product complaints, relating for example todissatisfaction with effects after use or flavor and scent;
9% were related to product problems, such as damage
to flooring caused by detergent. We will make efforts forcreating the environment in which customers feel easy
about consulting, and quickly responding to consultations
with sincerity. The number to call can be found in List ofInquiries＊ on Lion’s website.

Fair Operating
Practices

Overview of Inquiries and Complaints During 2012

CSR Report 2013 39

Consumer Issues【Ideal Vision】

Considering
the Environment from a Product-Oriented Perspective
Maintaina soundmanagement
systemLion established the Lion
Eco Standards to quantitatively
material procurement; (3) manufacturing; (4) logistics; (5)assess ourenvironmental impacts at each stage from thehousehold use; and (6) disposal. In this way, Lion develops
thatis continuously
procurement of raw materials to the disposal of products,
products, considering the environment in terms of the producttrusted by society
from the Life Cycle Assessment (LCA) perspective. The
Standards define an “eco-friendly product” as a product thatsatisfied the criteria of at least one area of evaluation basedon a quantitative assessment of environmental impact in thefollowing stages: (1) raw material procurement; (2) packaging

composition (contents), as well as containers and packaging.
In order to lower the impact of products on the global
environment throughout their entire life cycle as much as
possible, Lion is earnestly committed to the development of
eco-friendly products and information provision.

Areas and Criteria of evaluation for the Lion Eco Standards
Stage

Evaluation area

Evaluation criteria

1 Raw material

Use of plant-based raw materials
Use of sustainable raw materials● Percentage of plant-based raw materials in composition of organic substances is 50% or more.

Packaging
2 material
procurement

Use of recycled materials
Use of sustainable materials
Use of plant-based materials
Use of biodegradable materials● Recycled materials including plastic are used.

procurement● Biodiversity-conscious materials are used.

In case of paper board, the use rate of pulp made from waste paper,
forest thinnings, or wood of certified forests is 94% or more.
● Plant-based and biodegradable resins are used.

3

Manufacturing

Energy savings and reduction of water usage
and wastewater during manufacturing
Reduction of chemical substances use
Reduction of waste

4

Logistics

Compact size, high concentration● A product is downsized or concentrated by 20% or more compared with existing products.

5 Household

Energy savings during use (power savings)
Organic substance release per use
Reduction of water usage (water savings)● Energy consumption in use is reduced 20% or more compared with existing products.

Reduction of packaging and refill availability
Reuse and recycling of packaging, other● Packaging and wrapping materials use reduced 15% or more compared with major products in the market.

use

6 Disposal● Used amounts of energy, water, and chemicals, and discharge of drainage

and waste volume during manufacturing are reduced 20% or morecompared with those of existing products.

● Organic substance release per use is reduced 20% or more compared with existing products.
● Water usage in use is reduced 20% or more compared with existing products.

● Weight of pouches and bottles for refills are 50% or less of net weight.

※ The Lion Eco Standards does not explicitly require materials that do not contain hazardous chemicals or have good biodegradability because these matters are obvious minimum requirements.

Percentage of Products Satisfying the Lion Eco Standards

Environmental Considerations in Product Composition Development

The percentage of products manufactured by Lion (excluding
pharmaceuticals) satisfying criteria for at least one Lion Eco Standards
area of evaluation is 65% of all items, or 81% in terms of sales value.

Lion is promoting the development of product components thatmeet environmental challenges such as global warming prevention
with the use of plant materials, and water environment protection
by using biodegradable materials and reducing water usage eachtime. Prime examples of this approach are the development ofmethyl ester sulfonate (MES) and methyl ester ethoxylate (MEE).

Eco-Friendly Product Ratio and Percentage of Sales
（%）
100
80

83

81

80

82

82

81

59

60

63

63

66

65

2008

2009

2010

2011

2012 (year)

71

60
40

55

20
0

2006

% of sales

40 CSR Report 20132007

% of products

For related information, see p.31

Lion was the first in the world to carry out the industrial productionof MES, which is used in TOP Platinum Clear and other Lion
powdered laundry detergents.
MEE, which even in small amounts has high detergency, is used in
TOP NANOX and other liquid laundry detergents.
＊Excellent features of MES
URL http://www.lion.co.jp/ja/csr/env/resources/

60,000

11,14015,28364,642486

9,789
13,53360,841

57,81756,442

472

440

436

8,252

7,678

7,525

11,70010,147

8,867

Paperboard

Metal
Glass

40,00026,072

25,53824,83824,412

23,466

Corrugatedfiberboard

14,65815,296

15,57915,13916,148

Plastic

2008

2009

2010

2011

2012

(year)

20,0000ReduceSmaller Products and Innovations in Container Design
Lion is working to reduce container and packaging material
usage by increasing the concentration of products suchas laundry detergents, fabric softeners and dishwashingdetergents as well as by making containers smaller.
In 2012, total container and packaging material usage
decreased by 1,375 tons from a year earlier. Although
plastic usage increased due to the expansion in laundryliquid detergent, the decrease in the usage of othermaterials surpassed this amount.
Lion will continue efforts to reduce container andpackaging material usage through making smaller products
and innovative container designs.
Making Products Smaller

Higher concentrations enable
smaller containers
Container weight

Refill products

RecycleUse of recycled materials
Use of recycled resins

PET resin recycled from plastic drink bottles
constitutes 20% or more of material for containersof dishwashing detergents. Measuring spoons for
powder laundry detergents is made partly fromrecycled resin.

Fair Operating
Practices

567

Product containers made using recycled PET resin

Use of paper made with recycled pulp

White paperboard made with recycled pulp is used forcontainers and packaging for such products as toothpasteand detergents. It is stated clearly on powder laundry
detergent containers that the recycled pulp content is
at least 70%.Corrugated boxes used for transporting
products have 94% recycled pulp content.

Product containers made using recycled pulp

Community Involvement
and Development

67,720

Human Rights(tons)
80,000Lion and CSR

Using refills means the original plastic bottles for
products can be re-used several times. Containers ofrefill products also use less material than the originalcontainers, and they are lighter and smaller, helping to
reduce the amount of waste generated by households.

Organizational
Governance

Expanding the range of refill products

Labor Practices

Container and Packaging Material Usage by Lion

Reuse

The Environment

Lion actively promotes the implementation of the“3Rs” (Reduce, Reuse, Recycle) as a container andpackaging material reduction initiative.
The Lion Eco Standards provide for container andpackaging reductions, prescribing related criteria understages of packaging material procurement, logistics
and disposal.

Consumer Issues“3Rs” for Reducing Containers and Packaging

CSR Report 2013 41

Community
Involvement andDevelopment

Vision】
vision】【Ideal【IdealMaintain aandsound
Co-existence
co-prosperity
management
systemwith society and communities/
that is continuously
contributeto the development
trustedbysocietyof society in Health,Comfortand Environment Areas
Oral Health Event ofTooth Brushing forChildren

Basic Approach
Since its foundation, under the corporate philosophy of“contributing to the society through our business activities,” Lionhas worked on social action programs, effectively using the Group’sbusiness resources, with the goal of enriching the happiness andlives of people, as well as achieving the sustainable society. To thisend, we have regarded “health,” “comfort,” “environment,” and“regional contribution” as priority areas. In terms of “health” and“comfort,” we have mainly conducted “Oral Health Promotion
Projects” and “Education activities for Hand Washing and
Gargling,” which directly link to business activities. In conjunction
with “Eco Vision 2020,” we have also tackled three environmental
goals, “Realization of a Low Carbon Society,” “Realization of
a Sound Material-Cycle Society,” and “Harmony with Nature”
through business and social contribution activities.

Lion’s social and environmental contribution activities

Environment (Eco Vision 2020) →p6～9

Regional Contribution

Oral health promotion projects

Realization a Low Carbon Society Realizing a Sound Material-Cycle Society
Reducing Water
Use of plant-derived→p31
usage/Wastewater →p31
raw materials
Reducing CO2 →p32 Reducing Containers →p41
and Packaging
Emissions

Activities at business locations

LDH oral healthactivities→p42～43

Kidzania ＊1

Academic support ＊1(Lion Award)

p38←

Meister
activities

For Clean, Healthy, and Comfortable Life

Harmony with Nature
Sustainable procurement
Biodiversity Conservation Activities →p33
of plant-derived oils →p35

Education activities for Hand Washing and Gargling
Education activities to makea habit of washing hands(Chase Away Germs! Rally)→p44

UNICEF campaigns(KireiKirei)→p44

Protection of Water Resources
Forest Maintenance Activities(Lion Forest in Yamanashi and Odawara)

Chura action ＊2＊1 Kidzania, Lion Award
URL http://www.lion.co.jp/ja/csr/community/oral/

Promotion of Rainwater Utilization →p44

Supporting academic and civil activities ＊3→p44(Japan Water Award, Japan Society on Water Environment)

Beautification activities(Cleaning up, etc.)

Seminars,
Science Classes

Plant tour

→p45

Activities to support the disaster-hit areas
the “Make Tohoku Well and Active Again” support project(Chase Away Germs! Rally,
Tooth brushing counseling room)

love, Ishinomaki(educational activities to make a habit →p45
of washing hands and tooth brushing)＊3 Protection of Water Resources Supporting water environmental researches and civil activities
URL http://www.lion.co.jp/ja/csr/community/conservation/＊2 Chura action (“Chura” means beautiful or clean in a dialect of the Okinawa prefecture of Japan)
URL http://www.lion.co.jp/ja/csr/env/communication/

Activities of Lion Foundation for Dental Health
Under the consistent philosophy of “returning benefits
from corporate activities to society” since its founding,Lion has been conducting oral care promotion andeducation activities since 1913. The Lion Foundation for
Dental Health (LDH) was founded in 1964 under theapproval of the Ministry of Health and Welfare, and wasrecognized as a public interest incorporated foundation by
the Cabinet Office in 2010. LDH continues to contribute tosociety in the front line of oral health, leading to a better
quality of life for all people, by maintaining and improving
the dental and oral health of ordinary citizens throughthe three projects shown right, in cooperation with dental
associations, universities, government authorities and otherparties. Lion has provided full support for these activities.

42 CSR Report 2013

Three LDH Projects

１．Oral health promotion projects
・Activities to promote and provide education about oral
health for all life stages
２．Research and investigative projects
・Investigating and studying the importanceof oral health in preparation for an increasein healthy life expectancy, and providing
information on findings obtained throughindividual projects and activities to experts
and consumers.
３．Educational and training projects
・Providing a variety of seminars and lectures
for health supervisors and dental experts＊Oral care diffusion and education activities
URL http://www.lion.co.jp/ja/csr/community/oral/

Selected Social Contribution Activities by LDH (2012)Children participating in the Oral
Health Event of Tooth Brushing
for Children

The stage of main venue (Japan
Dental Association Hall)

Academic Contribution
In 2011, designated as a research organization toreceive an academic research subsidy from the Research
Promotion Bureau of the Ministry of Education, Culture,
Sports, Science and Technology, LDH became able topromote joint research with a wide range of universities
and public institutions. In April 2012, two research
themes were adopted as subsidized science research
projects, including a three-year joint research project with
the Graduate School of Medicine, Kyoto University. LDH
intends to promote research that can make academic
and social contributions.

Holding of Seminars
LDH holds various kinds of seminars on the latest dental
information and other topics for dental hygienists.
Especially, "Lion New Year Seminar,” which is held inJanuary every year, was in its 22nd year in 2012. Under
the theme of "aiming to extend healthy life-span,” four
lecturers talked about the roles of dental hygienists foreach life stage.

Oral health activities for mothers and children
LDH supports child-rearing through oral
health activities for expectant mothers,
infants, kindergarteners and their parents.
197 locations, 200 occasions
Participants: 7,979 small children,
2,626 parents/guardians

Oral health activities for school children
LDH provides direct guidance activities forschoolchildren and their parents/guardians, andsupports the activities of health supervisors.
426 locations, 527 occasions
Participants: 39,914 school children,1,105 parents/
guardians, and 1,129 health supervisors

Oral health activities for adults (Occupational health)
Advice is provided to workers, principally
relating to periodontal disease prevention
and oral health care and promotion.
268 offices, 545 events
Recipients: 31,360

Oral health activities for the elderly
LDH provides support for maintenanceof oral functions so the elderly canmaintain their own teeth.
44 locations, 45 events
Participants: 1,165

Examination and Treatment

Lion New Year Seminarat Sendagaya Tokyo in
January 20, 2013

Highly specialized and high quality
examinations, treatments and preventive
dentistry activities are provided in linewith the concept of risk control.
Recipients: 11,637

Lion and CSR
Organizational
Governance
Human Rights＊"Enjoyable learning materials with DVD" (LDH Website)
URL http://www.lion-dent-health.or.jp/material/material_b.htm

Labor Practices

Enjoyable learning materials
with DVD

The Environment

LDH produced DVDs for kindergarteners (and their guardians)
and for 5th- and 6th-grade children, with which they can learn
about "dental and oral health" in a fun manner.
The DVDs were developed as educational material for teachers
who provided education about dental and oral health tokindergarteners and their guardians, as well as elementary
school children. The DVDs contain the expertise about healthand tooth brushing guidance cultivated by LDH. We intend
to contribute to the improvement in dental and oral health of
more people by promoting the use of DVD learning materials.

Fair Operating
Practices

The purpose of the Oral Health Event of Tooth Brushing forchildren, which has been ongoing since 1932, is to foster
schoolchildren’s awareness of health, including the importanceof dental and oral health, as well as tooth brushing. It is held inTokyo every year during the period of “Dental and Oral HealthWeek” (former Japan’s Dental Health Week) from June 4 to 10.
In 2012, a live Internet video stream of the 69th Oral Health
Event of Tooth Brushing for Children was broadcasted to a totalof 647 elementary schools including participating schools fromall over Japan, as well as Asian countries (China, Korea, Hong
Kong, Singapore, and the Philippines) from the main venue atJapan Dental Association Hall in Ichigaya, Tokyo. Approximately
38,500 schoolchildren participated in this international event.
As a part of health education, they learned about "healthy
gums" for an hour while having fun.

Consumer Issues"Enjoyable learning materials with DVD" (Two kinds)

Community Involvement
and Development

Oral Health Event of Tooth Brushing for Children

CSR Report 2013 43

Community
Involvement andDevelopment【Ideal Vision】

Educational Activities
for Hand Washing and Gargling
Maintaina soundmanagement system
コミュニティへのSince
foundation, Lion has contributed to the development
参画及び発展
thatits is
continuouslyof a culture of cleanliness and hygiene in society through its
trustedby society
products
and educational
activities. Succeeding them, we haveworked on educational activities for hand washing, gargling,
and disinfecting through products of "KireiKirei" series.

KireiKirei "Germ Buster Project""Germ Buster Project" is an approach to foster
hygienic habits of hand washing, gargling, anddisinfecting through products of "KireiKirei" inorder to have people lead a healthy life every day.
The "Chase Away Germs! Rally" is implemented forkindergarteners to help them develop habits of handwashing and gargling from an early age. We deliver
to kindergartens nationwide kits containing checkstickers and leaflets for hand washing and gargling,
KireiKirei Medicated Foaming Hand Soap, and gargle
medicine. With them, the kindergarteners check
whether they could wash hands and gargle well ina fun manner, and learn
preventive measures against
cold and flu. In 2012, therally was implemented at
1,512 kindergartens with
265,447 kindergarteners.
Logo of Germ Buster ProjectCampaign for Expanding a Circle of Kirei over Asia
In order to improve hygienic habits of Asian children, we
donate part of the proceeds from the sale of KireiKirei
series to UNICEF. Since 2010, when we started the
donation, a total of 26,361,570 yen has been donated asof the end of 2012. The donated funds have been used
for the construction of water and hygienic facilities andactivities to promote hygienic habits at 32 elementary
schools in Myanmar. As the result of those efforts, children
have gotten into the habit of washing their hands after
going to the toilet and before meals. Consequently, thenumbers of children who suffer from diarrheal diseases
and die from the diseases are expected to decrease.

© UNICEF Myanmar / 201244 CSR Report 2013Children washinghands with soaps
before meal

Conservation Work
Lion has been deeply and constantly involved with water
through "washing." We believe it is our responsibility toprotect the water environment such as delivering ecofriendly products. To this end, we proactively conduct theforest maintenance activities at Lion Forest in Yamanashi toprotect water sources, and activities to promote and educate
about the use of rainwater, a familiar water resource.

Forest Maintenance Activities at Lion Forest in Yamanashi
Since 2006, regarded the Lion Forest in Yamanashi as a field
for raising environmental awareness among employees,
Lion has conducted forest maintenance activities with theaim of preserving biodiversity, preserving forests as sourcesof water, and revitalizing local communities. In 2012, 112
employees in total participated voluntarily in the forest
maintenance activities including three ordinary sessions anda session as part of a new employee seminar.

2012 Rainwater Utilization Idea Contest
With the aim of having junior high and elementary school
students nationwide think about the importance of water,"2012 Rainwater Utilization Idea Contest" was held again.
The contest consisted of four categories: essays, posters,
research projects, and slogans, with 6,328 entries in total.
In March 2013, the commendation ceremony was held forseven grand prix winning works at Hirai Research Institute.
The school incentive award was also presented respectively
to an elementary school and a junior high school, which both
sent many excellent works to the contest.

The grand prix winning works
in the poster category
Elementary school student's work (above)
Junior high school student's work (right)

The commendation ceremony of 2012 Rainwater Utilization Idea Contest

Human Rights

Organizational
GovernanceSending researchers of our research institutein Hirai, Edogawa Ward, Tokyo to science
experiment classes for elementary school children

Labor Practices

Inviting children from children's nursing homein Tokyo to have them enjoy Sumida River
Fireworks Festival from the office rooftop

The Environment

Holding a tooth brushing seminar for
members of women's societies near our Osaka
OfficeImplementing clean up activities in neighboringareas of each officeConsumer Issues

Educational activity for hand washing at a childcare center

Cleaning up the seaside park near our Fukuoka OfficePlant Tours in 2012
Ishinomaki Marché (regional products fair)＊Lion's Approaches to reconstruction from the Great East Japan Earthquake
URL http://www.lion.co.jp/ja/csr/reconstruction/

Lion and CSR

Major social contribution activities in communities

Fair Operating
Practices

Following the Great East Japan Earthquake, Lion provided a totalof the equivalent to ￥350 million in relief donations and supplies
to those affected by the disaster. Moreover, Lion supported its
employees to participate in volunteer assistance programs in theaffected areas. (75 employees participated during the period from2011 to 2012.)
Since six months after the disaster, we have also implemented
the "Make Tohoku Well and Active Again" support projectin three prefectures, Iwate, Miyagi, and Fukushima, using ourbusiness resources. We conducted the following activities: "Tooth
Brushing Counseling Room" by dental hygienists of LDH (the LionFoundation for Dental Health) at kindergartens, etc.; the "Chase
Away Germs! Rally" (held at 100 places including 13 places visitedby the caravan in 2012) to develop hand washing and gargling
habits at kindergartens; and the "KireiKirei Nationwide Visiting Teamto Encourage Enjoyment of Books" Campaign (held at 46 placesin 2012) to establish hygienic habits through picture-story shows.
As part of the project, Lion started support activities for Ishinomaki
City in Miyagi Prefecture, an area that is closely tied with Tomijiro
Kobayashi, the founder of Lion, focusing on: 1) caring for children;2) supporting creation of communities; and 3) supporting economic
restoration. Lion's employees carried out educational activities forhand washing and tooth brushing at 15 places including childcare
centers in 2012. In addition, regional products fair at our threebusiness locations in Tokyo, and rugby classes for elementary andjunior high school students in Ishinomaki were conducted.
Also in 2013, we will continue to support employees to participate
in volunteer assistance programs in the affected areas, and conduct
the "Make Tohoku Well and Active Again" support project.

Community Activities

Chiba

OdawaraOsaka

AkashiNumber of tours

Plant

73

140

72

72

Total
357

Participants

1,431

3,621

2,048

2,080

9,180

Community Involvement
and Development

Supportive Activities in the Great East Japan Earthquake Disaster Areas

CSR Report 2013 45

Third-Party
Review【Ideal Vision】

Following
last year
will make third-party comments on Lion
Maintaina I sound
Corporation’s “CSR Report 2013” (hereinafter referred to as “the CSR

management system
Report”). I received necessary explanations on the content of the CSR
that is continuously
Report and the company’s approaches to CSR at a meeting with thetrusted by society
responsible officials of the CSR Promotion Department.

3. Collaboration with Employees
The most important management resources to achieve businessobjectives are the employees. The Lion Group’s basic CSR approach isthat the Group contributes through its business activities to cleanliness,health, and comfort of the society; and to realize the idea, it first
explains the measures for the employees using figures. Especially the

1. Approaches to the Environment toward 2020

way in which the associated data is shown in chronological order

In the feature of the CSR report, the fiscal 2012 targets andcan be appreciated. I believe that in the future, the expansion ofachievement levels of each environmental item are released as aemployee data will first help employees understand the benefits andsummary of the new mid-term three-year environmental plan. CO2

strengths of the Group. The increased disclosure of this information

emissions were reduced by 33%, which means that the target forto consumers will further improve the understanding of the Group’s

reducing the 1990 level by at least 30% was achieved despite a higher

increasing corporate value. Regarding employee data, a downward

CO2 emission coefficient due to the nuclear power plant shutdowns

trend is observed in the acquisition rate of paid leave, so I hope to see

in Japan. The targets for reducing waste and water were not achieved

improvements made in this area.

due to reasons such as product damage and an incinerator shutdown
as explained in the CSR Report.

4. Approach to Value Chains"Eco Vision 2020" was developed along with the new management

Companies that run a business have relationships with many social

vision with specific and quantitative targets based on visions suchorganizations from raw material suppliers to consumers. Therefore,

as the realization of a low carbon or a sound material-cycle society,the business objectives and the CSR activities should be considered inand harmony with nature. Through these activities the Lion Group

connection with these relationships. In this regard, the CSR activities

has made a commitment to become an environmentally-advanced

are explained in relation to the value chains in the CSR report. In

company to realize a sustainable society, which can be highly

particular, the detailed explanations about the management of raw

appreciated. I expect that the company will gain higher confidencematerial suppliers from the CSR perspective and the consumer issues,

from society during and after the next fiscal year by releasing

which included safety measures, were appreciated. All botanicalthe achievement levels of these targets and demonstrating theresources are planned to be switched to palm oil, which is recognized

contribution to a sustainable society where the economy and theas an environmentally friendly product. I recommend that theenvironment coexist. Environmental information on the overseas

company should provide a clear explanation about the details, such asGroup companies was disclosed in response to my previous review.

the purpose and content of this change.

I believe that in the future, the report should also include CSR
information with the range of disclosed information clarified from the

The need for non-financial information including the CSR information

perspective of control and influence.

alongside the financial information is growing. Moreover, thestakeholders such as investors and consumers are eyeing its role

2. Clarification of CSR Activities

to supplement the financial information. I believe that the clear

The Lion Group has set the CSR targets on the basis of ISO26000,

publication of the company’s approaches to social responsibilities andwhich is the International Standard of the social responsibility. This

their objectives and achievements will help enhance communication

year the 2012 CSR achievements of activities and objectives for 2013

with society to win its understanding, which will become a basis towere disclosed in the CSR report. Specific targets for each core subject

support sustainable development of the Lion Group.

of ISO were established and evaluated with the pages containing

Note: This review is not intended to express opinions regarding the accuracy andcompleteness of the content of the CSR Report.

explanations; such arrangement allows comprehensive and clear
understanding of their activities. As for the organizational governancestructure that exerts influence on other subjects, only individual
factors such as governance or risk management are separately
explained. I expect that explanations will be made in connection with
CSR activities.

46 CSR Report 2013

Yoshito Nakamura
Certified Public Accountant
Adjunct Instructor of Toyo University
Adjunct Instructor of the Open University of Japan
Auditor of the Kawasaki City Council of Social Welfare
Auditor of the Supporting Organization of JOCV
Auditor of Foundation for Accounting Research of Construction Industry

Lion’s
Responses
Since the company’s foundation in 1891, Lion has contributed toprotecting the environment through the use of our products as well

the realization of a clean, healthy, comfortable, and environmentallyas creating new value. Approaches to CSR in collaboration with ourfriendly life under the Company Motto, “Fulfilling a Spirit of Love.” Inclients/vendors have only just begun, but we will steadily continue theseorder to expand such businesses in Asia, CSR should be incorporated

activities in the future.

into the management controlling the whole Group.

On the other hand, the power of the employees who courageously

We have proceeded with the evaluation of the whole Group’s CSR

attempt to tackle difficult issues is essential for our CSR management

activities to establish a system which administers the Lion Group’s

aims. The innovations induced by each employee have continued to

CSR activities. This report shows that progress was made on the

support the company. In the future, we will develop a good working

identification of important issues and the determination of medium-environment, work on human resource development and utilize diverse

term targets. In the future, we will work through substantial discussions

human resources.

to organize a system, which ensures the on-site PDCA cycle of

It is one of the important social responsibilities of our company to"hypothesis,” "verification,” and "execution" as core steps.

strengthen and enhance the CSR activities and clearly communicate thisThe third party review appreciates the disclosure of important CSR

information outside the company. We will communicate information

issues, targets and achievements, which enables the comprehensive

about our approaches to CSR via the CSR Report and the website, andand clear understanding of our activities. In the future, we will releasefulfill our responsibilities by meeting the demands of the times.

the target attainment levels and disclose our progress.
For the “Eco Vision 2020,” the demonstration of our willingness tocontribute to a sustainable society by setting concrete and quantitative
targets was evaluated. In order to achieve the targets, we will strive fortechnological development to reduce environmental burdens at every
stage from raw material procurement to product disposal, and keep

Itsuo Hama
Representative Director
and President

Editorial Note
Since 2011, Lion has systematized its CSR activities in accordance with ISO26000.
Regarding progress in this area, this Report carries important issues and targets
specified under the seven core subjects of the ISO. We showed the ideal visions,
medium-term targets, and the 2012 targets, achievements and evaluations of eachsubject in a list to clarify the whole picture, and tried to make the Report easy-to-readand comprehensible.
The feature article is about the "Eco Vision 2020" as our "advanced environmental
initiatives" which is one of the CSR issues. Not only did we communicate our target
values and activities, we also explained the processes for determining our targets, byproviding the background context of global environmental problems, our approach tothe scope that is relevant to our company, and opinions from external specialists, sothat the overall picture can be understood.
In the future, we would like to show the progress toward these targets andachievements, and to disclose information especially on our overseas approaches.

CSR Report 2013 47

Corporate Message

For more than 120 years, we have engaged in business closely related to people’s living.
In due course, we learned that the essence of happiness is to live fulfilling everyday
lives and to cultivate a positive attitude.
An accumulation of todays’becomes your entire life, and a part of your life happens today.
Therefore, we believe that valuing each day of each person leads to valuing his or her life.
Lion’s role is to provide support for this kind of daily living. Under these ideas,
we prepared our corporate message, resolving to continue to make new proposals toward
our customers’valuable futures.
Published : November 15, 2013
Inquiries : CSR Promotion Department, Lion Corporation
3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan
Tel: +81-3-3621-6611
Fax: +81-3-3621-6269
Website: http://www.lion.co.jp/
Next scheduled publication :November 2014

Lion is selected for the
FTSE4 Good Index Series, a
global indicator for socially
responsible investment.

In recognition of its advanced
environmental initiatives, Lionhas been certified as an Eco
First Company by the Japan’s
Ministry of the Environment.