CSR Report

Love today,Love your life.

CONTENTS
01 About Lion
04 Message from the Management
06

Lion's CSR
08 History of Lion Group's
Business Activities
10 Establishing the Group-wide
CSR Management Structure
12 Reviewing the Approach to the2014 Medium-term Objectives
and Setting the 2017
Medium-term Objectives
16 Overview of Lion's Social andEnvironmental Contribution
Activities

17 2014 Highlights ①

Promoting Educational
Activities for Preventive
Dentistry

22 2014 Highlights ②"KireiKirei City – Sakaide"
Project (Hand-washingeducation activities)
24

Organizational Governance27

Human Rights

28

32

Labor Practices

The Environment

Editorial Policy
Lion views its CSR Report as an important tool allowing the company to present its CSR initiatives and draw on stakeholder opinions while furthering corporate activities.

Editorial Policy for CSR Report 2015
Since 2011, our CSR activities have been systematized in accordance with ISO 26000, an international standard concerningsocial responsibility. The CSR Report and CSR website also reflect
the above.
The Report discloses the results and evaluations of the 2014
Medium-term Objectives corresponding to the major CSR issues
and Lion's management plan, as well as the new 2017 Mediumterm Objectives.
Full details of the activities that have demonstrated progress areprovided as 2014 Highlights so that readers can have a betteridea of the status of these major activities.
At the bottom of the pages on each core subject of ISO26000,
the URLs of the CSR website that includes details of the activities
are given.
The URLs of Lion's primary web pages have been made to be
two-dimensional bar codes (smartphone-friendly website) sothat the readers can more easily access to the pages.
A third-party review by outside experts has been included toprovide an objective assessment.
Information on standard disclosure items as required by the GRI
Sustainability Reporting Guidelines is provided.

Reference Guidelines
The Environmental Reporting Guidelines (2012) of the Japanese
Ministry of the Environment
G4 Sustainability Reporting Guidelines of the Global Reporting
Initiative
ISO 26000: Guidance on social responsibility issued by JapaneseStandards Association

38

Fair Operating Practices

Coverage40

Consumer Issues

45

Community Involvement andDevelopment

48 Third-Party Review
49 Lion's Response/Editorial Note

CSR Report 2015

Lion Corporation and all domestic consolidated subsidiaries arecovered, as a rule.
*When the coverage of reported activities and data is different, adescription is provided.

Period Covered
January 1 to December 31, 2014
(Some parts of the activities include those of 2015.)

About Lion
Performance Transition(consolidated)
Net Sales

Corporate Data
Corporate Name

Lion Corporation

Address

3-7, Honjo 1-chome, Sumida-ku, Tokyo
130-8644, JapanFoundation Date

October 30, 1891

Capital¥34,433.72 million (as of December 31, 2014)

300,000

Representative

Itsuo Hama, Representative Director/President

250,000

Employees

Consolidated: 6,343
Non-consolidated: 2,499 (as of December 31, 2014)

150,000

Net Sales

Consolidated: ¥367,396 million(million yen)
400,000
350,000

Non-consolidated: ¥261,200 million (as of December
2014)
PlantsChiba Plant (Ichihara City), Odawara Plant (Odawara City),
Osaka Plant (Sakai City), Akashi Plant (Akashi City)

Research Facilities

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

Sales Offices

Sapporo, Sendai, Tokyo, Nagoya, Osaka, Fukuoka

331,100

327,500

2010

2011

335,171352,005367,3962013

2014(year)

200,000
100,000
50,0000

2012

Operating Income(million yen)
12,00010,50012,406
11,16910,81910,000

List of Major Subsidiaries and Affiliates
URL http://www.lion.co.jp/en/company/html/com0301f.htm

8,000

Net Sales Breakdown by Business

4,000

7,213

6,000

2,000

Consumer Products Business・ Oral Care Products¥274,427 million

0¥55,344 million

・ Beauty Care Products
・ Fabric Care Products

・ Living Care Products

・ Pharmaceutical Products
・ Other Business

2010¥20,468 million¥38,156 million¥56,738 million

20122014 (year)

2013

Ordinary Income¥83,540 million¥20,179 million

2011(million yen)
14,00012,00011,795

14,05910,000Industrial Products Business¥59,793 million

8,000

Overseas Business¥86,202 million

6,000

Others¥28,682 million

Adjustment ＊-¥81,709 million

Consolidated Net Sales¥367,396 million

12,30012,183

8,564

4,000
2,000
0

2010

2011

2012

2013

2014 (year)＊Intra-segment and inter-segment sales

Net Income

Location of Overseas Group Companies
Overseas sales
compared to previous year:

112%

Hong Kong(Lion Corporation (Hong Kong) Ltd.)
Thailand(Lion Corporation (Thailand) Ltd.)
Malaysia(Southern Lion Sdn. Bhd.)

Ratio ofoverseas sales(consolidated):

23%

China (Lion Daily Necessities
Chemicals (Qingdao) Co., Ltd.)South Korea(CJ Lion Corporation)
Taiwan (Lion Chemical
Industry (Taiwan) Co., Ltd.)

Malaysia(Lion Eco Chemicals Sdn. Bhd.)

Philippines(Peerless Lion Corporation.)

Singapore(Lion Corporation(Singapore) Pte. Ltd.)

Indonesia (P.T. Lion Wings)

7,368(million yen)
7,000
6,041
6,000
5,000
4,000

6,097

4,077

4,235

2011

2012

3,000
2,000
1,000
0

2010

2013

2014 (year)[IR Library] URL
http://www.lion.co.jp/en/invest/html/
inv0300f.htm

CSR Report 201501

About Lion

Main Lines of Business
Product Lineup of Consumer Products Business
URL http://www.lion.co.jp/en/company/html/seg002.htm#01

Consumer Products Business

Oral Care Products［ Main Products ］

Toothpastes, toothbrushes, mouthwashes, and interdental products, etc.

Lion provides a wide array of advanced oral care products to support everyone's daily
health needs.

Beauty Care Products［ Main Products ］ Shampoos, conditioners and treatments, bodywashes, antiperspirants and deodorants, hair-nourishment treatments, etc.

Lion promotes comfort, health and wellbeing through its line of quality hair and skincare products.

Fabric Care Products［ Main Products ］ Laundry detergents, fabric softeners,
bleaches, anti-static agents, etc.

Lion provides reliable products that make clothes not only clean but a pleasure to wear.

02

CSR Report 2015

Living Care Products［ Main Products ］

Dishwashing detergents, household cleaners, cooking-aid products, etc.

Lion offers products useful for promoting healthy, clean and comfortable eating andliving habits.

Pharmaceutical Products［ Main Products ］Analgesics, cold medicine, Antidiarrheal drugs,
digestive medicines, eyedrops, tonics and nutrients, insecticides, etc.

Lion offers an abundant lineup of quality brand products to meet consumers' increasing
self-medication needs.

Gift and Channel-Specific Products［ Main Products ］Novelties, gifts, functional
food products (mail-order only), etc.

Lion provides a wide variety of special order products for its clients as well as mail-orderproducts that meet people's needs.

Industrial Products Business

Chemical Products［ Main Products ］ Surfactants, fatty acid nitrogen derivatives, fatty acidmethyl ester and its derivatives, electro-conductive carbon black, and various
industrial cleaners

Always bearing our motto, "contributing to the global environment," in mind, we meet
people's needs by applying superior technical capabilities and high functionality products
based on interface science.

Palm tree fatty acid ester electrical insulation oil and application examples (environment-friendly transformers)

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

Industrial cleaners and subjected materials(precision components including automobile parts)

CSR Report 201503

Message from the Management

Representative Director andChairman

Representative Director, President andExecutive Officer

Benefiting Society through Business Activities
With the company motto of "Fulfilling a Spirit of Love," Lion iscommitted to providing superior products and services, in ourbusiness domains of "Health," "Comfort," and "Environment,"
that are helpful in the daily lives of people.
While the population explosion is becoming a criticalissue with concerns about a shortage of food and depletionof water and energy in Southeast Asia, the declining birthrate and aging population has been a problem in Japan and
China.
Lion considers it necessary to be aware of such socialchanges, as well as accompanying changes in people's values.
By realizing the social role Lion is required to play, we are04

CSR Report 2015

aiming, through our business activities, to help extend thehealthy life-span of the elderly and realize a sound material-cycle society in which resources are conserved and reused.
We will make efforts to further improve corporate value
as a highly reliable company capable of responding to expectations from all stakeholders including customers, shareholders, business partners, communities/society, and employees.
To this end, we develop products and provide services while
putting a top priority on customer satisfaction, promotion ofenvironmental conservation activities, and enhancement ofcorporate governance systems.

Creating future value for everyone"Life. Love. Lion."
Under our founding spirit of "contributing to social development through business activities," we have been not only
providing products, but also proposing good living habits as
a supporter of a culture of oral hygiene and cleanliness.
This spirit is reflected in our present corporate slogan of"Life. Love. Lion."
Lion is determined to provide assistance in achieving themeaning contained in the slogan: Love this day and live life
to its fullest, and you will become a torch that illuminates thepath to a brighter future.
In its Vision 2020, Lion clearly states that it aims to becomea "company that creates value for lifestyle and spiritual fulfillment," a "company that is advanced in the area of environmental responsiveness" and a "company that continues
to take on challenges, create and learn." We are looking tocontribute to society by continuously offering new value inthe areas of Health, Comfort and the Environment.
"Aiming to become a company that creates value
for lifestyle and spiritual fulfillment"
In 2014, the entire company worked to publicize "preventive dentistry" in which both periodical "professional care"by dentists and day-to-day "self-care" are continuously conducted, in anticipation of a super-aging society.
We provided oral care products for self-care, conductedoral health promotion projects through the Lion Foundation
for Dental Health, and opened a dental clinic exclusively forpreventive dentistry. Consequently, such activities increased
recognition and awareness of "preventive dentistry."
While washing hands and gargling in the proper way
have become more important due to the threat of viruses
and other factors, we have started activities to help citizens to establish proper hygienic habits in cooperation with
Sakaide City, Kagawa Prefecture, which is the location of themain production facility of Lion's hand soap.
As for the overseas business, a new plant for oral careproducts started its operation in China, to enhance its production ability.
We are also proactively working on tooth brushing education programs overseas. Not only in Japan but also in Asian
countries, we hope to continuously contribute to the formation of forward-looking, healthy, and comfortable living
habits, in addition to providing products.
"Aiming to become a company that is advanced in
the area of environmental responsiveness"
With the goal of contributing to the achievement of a "Low
Carbon Society," a "Sound Material-Cycle Society," and"Harmonizing with Nature," Lion formulated "Eco Vision
2020" consisting of environmental targets that look toward2020.
In 2014, the last year of the V-1 term of our medium-term
three-year plan, as a result of the activities conducted by all
the employees of Lion Group, almost all of the targets wereattained. The attained targets including reductions in greenhouse gas emission and water consumption.
Furthermore, with the newly established "Lion's eco-standards" in 2014 Lion started attaching an "Environmental
Label" to its products in order to enable customers to readilylead an ecologically friendly life by using Lion products intheir everyday life.
We believe that customers' leading an ecologicallyfriendly life each and every day will lead to global ecology
in the future.
Lion will contribute to the realization of a sustainable
society with development of advanced green technologies
and through communication with stakeholders.
"Aiming to become a company that continues totake on challenges, create and learn"
In 2014, at the aim of promoting a reform to become acorporate organization that takes on challenges in Japanand overseas and independently grows, and fostering such
personnel, we established a system in which people whoboldly take on challenges are highly appraised. We also
implemented the "Global Human Resources Development
Program" to foster personnel with adaptable fighting potential through overseas business. At the presidential sessions I
hold at business offices nationwide, I repeatedly speak about
our Management Vision. Meetings with employees are also
held to discuss specific themes to achieve the vision.
In 2014, by opening a website for lifestyle information
called "Lidea," we enhanced our ability to communicate
information that is useful for our customers' lives.
Lion will aim to be a company contributing to creation of
future value for each person, by understanding about customers the best, and integrating all of our employees' beliefs
into our corporate slogan of "Life. Love. Lion."
In order to remain a company that is trusted by society, it isimportant to integrate CSR within the managerial structureof the company.
Hence, we reviewed our management challenges in lightof our understanding of the requirements from society as
included in the international standard of social responsibility,
ISO 26000, and identified CSR material issues.
Domestic group companies addressed activities set in themedium-term targets of 2012, and, in general, attained thetargets by 2014.
From 2015, with the Group-wide medium-term targets
including overseas group companies, we will push ahead
with CSR activities.
In 2009, Lion announced its support for the UN Global
Compact: a global framework to realize sustainable growth.
As its ten principles related to human rights, labor, environment, and anti-corruption are common to the "LionGroup Charter for Corporate Behavior" and "Behavioral
Guidelines," we embrace them as behaviors that our employees should adopt.
We will continue to support it and make efforts toward
CSR management.

CSR Report 201505

Lion's CSR

The origins of Lion's approach to CSR can betraced to our founding spirit of "working for the
benefit of people and society." With the robust
business foundation established based on the
Company Motto and the Management Philosophy,
Lion has contributed to sustainable developmentof society through conducting business activities
under the management vision and by integrating
CSR material issues.

Business Activities Supporting
Healthy and Comfortable Society
and Environment

Sustainable corporate and social development
In 2020
Management Vision (Vision 2020)
Ideal Vision
1

Aiming to become a company that createsvalue for lifestyle and spiritual fulfillment

2

Aiming to become a company that is advancedin the area of environmental responsiveness3

Aiming to become a company that continues totake on challenges, create and learn

A company that creates value forlifestyle and spiritual fulfillment
long into the future by consistently safeguarding health, comfort, and the environment forpeople each and every day

In 2017
V-2 Plan

Health BusinessIn 2014
V-1 PlanPromotion of PDCA

Comfort Business

Environmentallyfriendly Business

CSR Material Issues

See Pages 12 to 15

Foundation for Business
Lion Group Charter for Corporate Behavior/Behavioral Guidelines
Company Motto / Management Philosophy

Company Motto/Management Philosophy
http://www.lion.co.jp/en/company/html/com0101f.htm

06

CSR Report 2015

Lion Group Charter for Corporate Behavior
http://www.lion.co.jp/en/company/html/com0201f.htm

Behavioral Guidelines (Japanese)

http://www.lion.co.jp/ja/company/about/indicator.htm

Lion's CSR"Life. Love."
Belief in our corporate slogan

Organizational Governance

The Meaning of "Life. Love."

Lion's approach to the"Life. Love." of consumers

Labor Practices

Corporate message
expressing Lion's mission andideal vision

Human Rights

An accumulation of todays becomes your entire life, and a part of your life
happens today.
"Life. Love." means leading life in a careful and positive manner, cherishing
every day and every moment leading to the future.
Laughing and crying at everyday affairs, being encouraged by them and feelingand accepting them are also part of "Life. Love."
Believing that it is Lion's mission to provide products useful for such a life, wewill offer new proposals towards a valuable future for everyone.

Through products
Lion develops products while desiring toclosely support people to lead a healthy
and comfortable life through daily activities such as brushing teeth, washinghands, cleaning up, and laundry.

The Environment
Fair Operating Practices

Through social and environmental
contribution activities

Consumer Issues

We hope to contribute to the creation ofhealthy and comfortable society andenvironment through educational activities for forming healthy habits such asbrushing teeth and washing hands, aswell as water resource conservation
activities.

Community Involvement andDevelopment

CSR Report 201507

History of Lion Group's
Business Activities
Functions added to products in response to people's needs,
as well as awareness of and education about oral hygiene

Oral Hygiene Business

Oral hygiene is Lion's core area of business. Over the years, we have contributed to the improvement of people's
living habits by developing many products with new functions, and have disseminated accurate information
about oral hygiene.

Founding

GrowthMass Production

From 1896

From 1913

1960s and 1970s

Promoting oral hygiene/
The root of social contribution
activities

Starting educational activities
to instill tooth brushing habits
in children

Expanding the market, and developing world-class products

Lion Toothpowder

A supplementary picture book thatcomes with the product(This is the rootof educational activities about oral
hygiene for children)
Completion of the
Odawara Plant(Reinforcement of
production system)

Charity coupons printed on the back of
packets (The root of Lion's social
contribution activities)

White & White(Development of laminated tubes
which are easy to use)

Lion Dental Clinic for Children

Culture of Cleanliness andEnvironmentally-friendly Business

Education about cleanliness andmeasures for the global environment

Through supplying many kinds of detergent, including laundry detergents and soaps, Lion has helped instill aculture of cleanliness in society from the days when notions about cleanliness were less well formed until thepresent day. In product development, we are currently tackling global environmental issues beginning with thoserelating to water.

Promotion of awareness of hygieneContribution to improved
hygiene in post-war Japan1891 to 1940s

1950s

1960s to 1980s

Promoted awareness aboutwashing with detergent

Contributed to eradication ofparasites with a neutral detergent for washing vegetables

Responded to the floating bubbles andeutrophication which occurred in rivers
as the use of synthetic detergents
became popular

Manual on standard
home laundry
procedures(Education on laundry
procedures)

Lipon(Japan's first fatty
alcohol-based
synthetic
detergent)
Lipon F
(Earned the top recommendation of theJapan Food Hygiene Association)

Plant-Derived Lion Laundry Soap
(Japan's first plant-derived soap)
08

CSR Report 2015

Response to water
environment issues

Dash

Murin (phosphorus-free)TOPOrganizational Governance

Expansion

Present

Responding to diversifying oral healthissues with more scientific research

From oral hygiene to systemic health
Promotion of "preventive dentistry"

Human Rights

From 1970s onward

Clinica(For prevention of cavities)

Lion's CSR

Lion's business that started out with manufacturing laundry soap and toothpaste has continued tooffer products and propose good lifestyles as a culture bearer for oral hygiene and cleanliness since
its foundation.
We have been focusing on "oral hygiene," "cleanliness" and "environmental friendliness" asmain business fields because they are the strengths of Lion Group and are also social issues attracting a lot of attention.

Clinica
Advantage series(Promotion of "preventive dentistry")
Labor Practices

Dentor(For prevention of pyorrhea)

Dentor Systema series(For prevention of periodontal disease)

Educational activities for oral
health in Asian countries
The Environment

Actions to meet increasing needs for disinfectants that came out of food poisoning
cases
1990s to 2000s

Present

Expanded a line of products based on plant-derived materials

Launched medicated soaps and developed
educational activities for children

Response to water resources issues
and water use reductions

Educational activities to make handwashing a habit

KireiKirei
Medicated Liquid
Hand soap

KireiKirei
Medicated Foaming
Hand Soap

TOP
HYGIA

LOOK BathAntimold Fogger

Contributing to a clean lifestyle in Asia

Overseas NANOX

The "Beat" brand laundry
detergent sold in South Korea
CSR Report 2015

Community Involvement andDevelopment

Spark

TOP
NANOX

Consumer Issues

Shokubutsu-Monogatari(Plant Story)

Fair Operating Practices

Response to petroleum
resources issues andresource conservation
1990s

09

Establishing the Group-wide
CSR Management Structure
Setting objectives and managing progress
Promotion of CSR Activities
We have promoted our CSR activities based on ISO 26000,
the global social responsibility standard, since 2011, and bylistening to and incorporating the opinions of third party
organizations, we have confirmed and evaluated ourachievements in our domestic group.
By considering world CSR trends, our company's uniquebusiness characteristics, potential risks, opportunities andtheir respective implications, we identified CSR material
issues in 2012.

Also, for each of the material issues, we have set a medium-term objective for three years which is consistent with
our management plan, and conducted improvement activities through PDCA.
For managing CSR activities in overseas Group Companies,
we have visited eight of our group companies overseas tolearn about their CSR efforts, and then set medium-term
objectives. We will conduct improvement activities throughPDCA.

Specific Processes of Identifying Material Issues

International CSR initiatives including ISO 26000 and UN Global Compact

External factors
Needs of stakeholders that can be addressed
through dialogues with Lion

Internal factors
Our ideal vision for 2020 and its alignment withbasic strategies leading up to it▶︎Management Vision (Vision 2020)▶︎Medium-term management plan (V-1 Plan)

Lion's CSR Material Issues

Value Chain and Material Issues (Activities in 2014 are described in related pages.)Stages ofValue Chain

Major Initiatives
Undertaken by Lion

Procurement of Raw Materials,
Packages, and Containers

・Promoting Human Resource Development

CSR Material Issues▶ p28/Revitalization Programs
・Establishing Good Working Environments ▶ p30
・Promoting Employees’ Health Management ▶ p31

Opportunities

・Establishing a Group-wide CSR Management Structure ▶ p10-11
・Formulating and Disseminating Human Rights Policy, Ensuring Human Rights Due Diligence＊▶ p27

Risks

・Enhancing Group-wide Management of Chemical Substances, Preventing Pollution▶ p33-34

・Promoting CSR Procurement ▶ p38-39▶ p44

・Promoting Information Security

・Enhancing Group-wide Quality Assurance System
・Enhancing Group-wide Occupational

Health and Safety Management System ▶ p31

Business Partners

Key Stakeholders

Employees＊Steps that an organization should take in order to recognize, prevent and address negative influences on human rights.

10

CSR Report 2015

▶ p40

Greatly Pro
gressedActivity 1〜Enhancin
g Social Contribu
Forming Hea
lthy and Co tion Programs Leadin
mfortable Ligving Habits〜toAchievements in 2014
In 2014 which was the final year of the medium-term management plan V-1, for each of the
CSR material issues, we promoted activities toachieve its objectives.

With the commencement of the medium-term
management plan V-2, we set medium-term
objectives for 2017 on the basis of progress andreview of respective material issues in V-1.
Related Information p12-15

ms Leading tol Contribution Progra ing Habits〜〜Enhancing Socia
Liv
le
ab
ort
d ComfForming Healthy an

Greatly Progressed Activity 3〜Promoting Information Used for Daily Life andPromoting Education Activities 〜

2014 Highlight 2
kaide" Project"KireiKirei City - Sa sanitary practices

Opening a new information
website "Lidea"

spreading
For the purpose of tices take root,ackaide"and having such pr"KireiKirei City - Sa anddhetyLion has launcCition with Sakaide
Project in collabora in Sakaide City (Kagawa
Ltd.
Lion Chemical Co.,
ap prothe Lion's hand soeerPrefecture) wh
ted.
duction plant is loca
2-23
lated Information p2

Labor Practices

A new medium for lifestyle information"Lidea" was established on our website by the
Lion Comfortable Lifestyle Laboratories thatprovide useful living information, in order toshare ideas (tips and information) that canenrich people's life and mind.

Re

Related Information p43

The Environment

Society/
Environment

Use by Consumers
for Daily Life and Promoting
Educational Activities

Human Rights

Activity 2
Greatly Progressed

Organizational Governanceing habit
hy and co
educationa s of consumers, Lion mfortablelthrough th activities for preventi conducted
e year.
ve dentistry
Rediscovetive dentist ring the importanceory
educationa ," each employee co f "prevennducted thl activities ineing into acc
a holistic moeration wit unt consumers' life st anner, takaghlocal govern external organizati e, in coopm
e
n
t,
sc
h
ools, hospit ons such astal clinics.
als, and denRelated Informationp17-21

Setting Objectives for 2017

・Providing Information Useful

Lion's CSR

201
Promoting 4 Highlight 1
preventive
Aiming at
dentistry
forming he
liv
alt

▶ p43

・Offering Products and Informationthat Contribute to the Developmentof a Sustainable Society▶ p44
Fair Operating Practices

・Engaging in Progressive Environmental Activities ▶ p32-37
・Enhancing Social Contribution Programs Leading to Forming Healthy and Comfortable Living Habits ▶ p16-23,45-47
・Promoting Risk Management, Embedding Compliance/Internal Control ▶ p24-26

Consumer Issues

0-42

Community Involvement andDevelopment

Customers

Local Communities
Environment

Shareholders/Investors

CSR Report 201511

Reviewing the Approach to the 2014
Medium-term Objectives andSetting the 2017 Medium-term Objectives
in Relation to CSR Material Issues
Reviewing the Approach to CSR Material Issues
in the Medium-term Management Plan (V-1: 2012 to 2014)
For each CSR material issue, we conducted activities to achieve the 2014 medium-term
objectives, and attained almost all of them.

Assessment criteria

Core Subjects

Attained as planned：○ ／ In progress but not attained：△ ／ No progress：×
Ideal Vision

CSR Material Issues

2014 Medium-term Objectives
Disseminating the Lion Group Charter for
Corporate Behavior
as a CSR policy

Establishing the Groupwide CSR Management
Structure

Organizational
Governance

Human Rights

Maintaining a Sound
Management Systemthat is Continuously
Trusted by Society

Establishing a
Framework for
Respecting Human
Rights－Setting objectives/KPIs and manage
progress

Promoting
Risk Management ＊2－

Embedding Compliance/
Internal Control Systems－

Formulating andDisseminating Human
Rights Policy－

Strengthening the framework securingrespect for human rights

Ensuring Human Rights Due
Diligence＊3
Disseminating information regarding the
hotline and strengthen the advice andwhistle-blowing framework－＊1 As to items for which any 2014 objective was not set, "-" is written in place of results.
＊2 As the BCP guidelines were set in 2014, "Reviewing the Business Continuity Plan," which was a material issue, was replacedby "Promoting Risk Management."
12

CSR Report 2015

Lion's CSR
Organizational Governance

Setting Objectives for the Next Medium-term Management Plan
(V-2: 2015 to 2017)
Non-consolidated (Parent Company) and Consolidated Group Companies in Japan

While continuing our existing activities, we set objectives for CSR material issues for which it was considered necessary toenhance approaches in light of social trends and our management policy.

Consolidated Overseas Group Companies

We set objectives based on interviews regarding respective companies' CSR activities conducted during the period from 2012
to 2014. Taking into account laws, cultures, and customs which vary depending on countries and regions, we will perform
activities in series in light of the situation of each group company.

●Implementing e-learning on the Lion Group

Charter for Corporate Behavior(Once a year)

Related information p26○－●Setting and disclosing objectives and KPI(2013 CSR report)○

2017 Medium-term Objectives
Domestic

Disseminating the Lion Group Charter for Corporate
Behavior as a CSR policy (ongoing)
Overseas

Disseminating policies concerning CSR

Labor Practices－

Evaluation

Human Rights

Achievement from 2012 to 2014 ＊1

Domestic Managing progress toward objectives (ongoing)
Overseas

Setting objectives and managing progress

Domestic－

Continuously operating Business Continuity Plan (BCP)
based on multiphase projections

The Environment－

Domestic

Raising awareness of compliance－－
Overseas

Enhancing internal control systems
Fair Operating Practices－

Domestic－

Disseminating the Lion Group Charter for Corporate
Behavior as human rights policy (ongoing)○

Promoting self-assessment questionnaire of CSR activities
by suppliers and offering its feedback. (ongoing)○

Disseminating information regarding the hotline andstrengthen the advice and whistle-blowing framework(ongoing)－

Setting up and operating internal contacts for reportingand consultations●Disclosing Lion's overview of its approach to human rights

in value chains and promoting PDCA
for each activity

Related information p27●Revising Procurement Principles●Establishing and disclosing

Consumer Issues"Lion Group Supplier CSR Guideline"

Domestic●Having suppliers self-check their CSR activities

and feeding assessment results back to the suppliers
Related information p39●Dissemination through the Compliance Awareness Survey(Annually implemented, Dissemination rate was 96% in 2014)－

Related information p26

Overseas＊3 Steps that an organization should take in order to recognize, prevent, and address negative influences on human rights.
CSR Report 2015

Community Involvement andDevelopment●Responding to and sorting out all cases

Domestic

13

Core Subjects

Ideal Vision

CSR Material Issues

2014 Medium-term Objectives
Implementing human resource development/revitalization programs

Promoting Human Resource
Development/Revitalization
Programs

Labor Practices

The Environment

Fair Operating
Practices

Changing Awarenessof Employees throughRaising Morale andMotivation

Contributing to theDevelopment of a
Sustainable Society as
an Environmentally
Advanced Company

Promoting CSR
Activities throughout
the Value Chain

Establishing Good Working
Environments

Carrying out diverse human resources
promotion programs

Achieving the requirements for the Next
Generation Support Act Phase 4 Action
Plan"－

Promoting Employees'
Health Management－

Enhancing Group-wide Occupational
Health and Safety Management System－

Engaging in Progressive
Environmental Activities

Promoting and manage progress of"Eco Vision 2020"

Preventing Pollution－

Enhancing Group-wide Managementof Chemical Substances－

Promoting CSR
Procurement

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

－

Pursuing Customer
Satisfaction by
ConsumerIssues
労働慣行
Creating Safe andTrustworthy Products

Co-existing andCo-prospering withSociety andCommunities/
Community
労働慣行and Contributing to the
Involvement
Development ofDevelopment
Society in the Areas of
Health, Comfort andthe Environment
14

CSR Report 2015

Offering Products and Information that Contributeto the Development of a Sustainable Society

Promoting and manage progress of"Eco Vision 2020"

Providing Information
Useful for Daily Life andPromoting Educational
Activities

Enhancing the provision of informationthat contribute to healthy and comfortable
life according to lifestyle and life stages

Enhancing Group-wide
Quality Assurance System－

Promoting Information
Security Measures－

Promoting oral hygiene activities

Enhancing Social"Promoting Children's Tooth Brushing
Education Program"Contribution Programs
Leading to Forming Healthy
and Comfortable Living
HabitsPromoting cleanliness activities"Promoting Education Activities forChildren's Hand Washing and Gargling"Achievement from 2012 to 2014

Evaluation●Revising and Implementing the Target Management System toDomestic

Enhance Activities to Promote PDCA Toward Attaining Objectives(Japanese)
http://www.lion.co.jp/ja/csr/employee/development/●Introducing and Implementing the "Global Human Resources Development Program"●Developing Human Resources with an Aptitude for Marketing○

Related information p28●Holding a "Career Forum" Offering Opportunities to Gain Knowledge●Achieving the "Next Generation Support Act Phase 4

Domestic○

Enhancing the "Diverse Human Resource Promotion
Programs "Implementing supporting measures for women to build
their career
Domestic○

Promoting work-life balance with measures for building an environment where employees can work healthily and energetically－－Enhancing opportunities for talks between employees
and management－－

Improving the environment to allow employees to work
healthily and energetically－－

Improving occupational safety and safety of facilities based onthe"Health, Safety and Disaster Prevention Management System"△

Promoting "Eco Vision 2020" and managing progress thereof(ongoing)

Action Plan"

Related information p30"Eco Vision 2020 " and Managing Progress thereof

Related information p34-35

Overseas

Domestic

Domestic

Domestic

Overseas－

Promoting pollution prevention (ongoing)－－

Enhancing chemical substances management systems (ongoing)●Revising Procurement Principles●Establishing and disclosing "Lion Group Supplier CSR Guideline"●Having Suppliers Self-check their CSR Activities and Feeding○

Promoting self-assessment questionnaire of CSR
activities by suppliers and offering its feedback(ongoing)－

Promoting "Eco Vision 2020" and managing progress
thereof○Promoting environmental educational activities for
consumers through products○

Enhancing the provision of information that contribute to healthy and comfortable life according tolifestyle and life stages (ongoing)

Label" and Starting to Attach the Label to Eco Products

Related information p44

The Environment●Creating an "Environmental Logo" and "Environmental

Domestic

Domestic

Related information p39－

Labor Practices

Domestic－

Assessment Results Back to Suppliers

Human Rights●Formulating the New Environmental Objective

Organizational Governanceabout Jobs in Each Department of the Company (Once a year or more)●Introducing and Implementing Regionally Based Employees Program
for the purpose of promoting temporary employees to regular employees and promoting diverse working arrangements for regular
employees
Related information p29

Embedding measures for promoting PDCA throughimplementation of the target management system
Global human resource development

Lion's CSR

URL2017 Medium-term Objectives

Domestic

Domestic

Information by "Meisters of Daily Life"●Holding Information Exchange Events for Consumers●Opening "Lidea," a new website for lifestyle information

Related information p43

Domestic●Promoting a New Oral Care Solution Business(ORALYSIS and ORALcom)(Japanese)
URL

Fair Operating Practices●Creation, Accumulation, and Provision of Living

http://www.lion.co.jp/ja/csr/highlight/2013/#sec03

－

－

－

●Promoting Educational Activities for Preventive Dentistry●Holding an Oral Health Event of Tooth Brushing for Children○●Educational Activities for Hand Washing and Gargling (Sakaide City:

Related information p22-23"KireiKirei City - Sakaide" Project)(Educational activities at kindergartens and preschools near ourbusiness facilities in Ishinomaki City)

Overseas

Domestic Promoting information security (ongoing)
Overseas

Enhancing information security management systems

Domestic

Overseas

Promoting educational activities for oral health
Promoting preventive dentistry (recommending self-care andprofessional care) and education for health instructors andchildrenDomestic○

Reinforcing compliance with regulations in each country andenhancing responses to customers

Overseas

Promoting cleanliness activities"Promoting Education Activities for Children's Hand Washing and
Gargling"
CSR Report 2015

Community Involvement andDevelopment(Annually. 2014: in Japan (1,146 schools), and in eight countries andregions in Asia (16 schools in total), approx. 66,100 elementary school
students participated in the event. Since 1932 when the first event was
held, a total of 920,000 or more elementary school students haveparticipated in it.)●Activities for Oral Health Promotion for School Children

Domestic Enhancing group-wide quality assurance system (ongoing)

Consumer Issues－

15

Overview of Lion's Social andEnvironmental Contribution Activities
Seeking to support people's lives for creating future value for everyone, Lion promotessocial and environmental contribution activities, in addition to its business activities.

Business Activities

Supporting people's lives
for creating future value for everyone

In the Health and Comfort Field

In the Environmental Field(Educational activities for oral health)(Water resource conservation activities)(Educational activities for hygienic practices)

Related information is on p46 and 47.

Management Vision

Social and Environmental Contribution Activities

Related information is on p47.

Our Priorities(Co-existence with communities)(Involvement of employees)

In the Health and Comfort Field

While providing products useful for making better living habits, such as oral care products including
toothpastes and toothbrushes, as well as cleanliness-related products such as hand soaps, we conduct
educational activities for oral health and hygienic practices.

In the Environmental Field
We strive to reduce the environmental load of our products to create a more eco-friendly lifestyle.
As our main products, such as laundry detergents, toothpastes, hand soaps, and dishwashing detergents, are deeply related to water through "washing," we also actively conduct water resource conservation activities.

Our priorities
As it is necessary to co-exist with relevant communities, for example, where our business facilities arelocated, in order to continue our business, we work to solve the issues of local communities in cooperation with local residents, local government, and citizens' groups.
In addition, by providing each employee more opportunities to participate in social and environmental
contribution activities related to business, we foster human resources who create new values based on ahigh degree of social and environmental awareness.

16

CSR Report 2015

2014
Highlight

Lion's CSR

1

Promoting Educational
Activities for Preventive
Dentistry

Organizational GovernanceBackground of Educational Activities
for Preventive Dentistry

Why is "preventive dentistry" important now?

Comparison with a country withadvanced preventive dentistry

In order to healthily enjoy meals every day, it is said that atleast 20 teeth are necessary.
In short, there will be a difference in future quality of life
(QOL) depending on the status of dental health.
Lion will continue to promote education on "preventive
dentistry" so that consumers can live healthily and comfortably throughout their life.

21

Sweden※2005 Survey on Dental Diseases (excluding people with edentulous jaw) Conducted by the Ministry of Health, Labour andWelfare※Hugoson Anders,Koch Goran:Thirty year trends in theprevalence and distribution of dental caries in Swedish adults(1973-2003), Swedish dental journal. 2008

Major target categories of "Health Japan 21(the second term)" (~ 2022)
The percentage of individuals who participated indental check-up during the past year

Current Data

34％

Target65％

The percentage of 80-year-old individuals withover 20 teeth remaining

Current Data

25％

Target50％

Development towards a healthy and comfortable society
Improving people's quality of life (QOL)
Boosting the percentage of people practicing preventive dentistry
Conducting educational activities for preventive dentistry withparticipation of employees
CSR Report 2015

Community Involvement andDevelopment

Toward a healthy
and comfortable society

Number ofremaining teeth

Consumer Issues＊1 Basic policies determined by the Ministry of Health,Labour and Welfare of Japan to comprehensively promote
people's health.

16.5

Japan

Fair Operating Practices

In recent years, Japan has begun to conduct nation-wide
activities to build dental and oral health, shifting its viewpoint from "treatment" to "prevention."
In relation to dental/oral health, "Health Japan 21 (thesecond term)" ＊1 a governmental plan announced in 2012
aims to maintain and improve oral functions, eliminate differences between prefectures in frequency that children
have cavities, and increase the percentage of individuals
who participate in dental check-up.

Number ofremaining teeth

The Environment

Making Japan a country withadvanced preventive dentistry

Differences in the number ofremaining teeth in people in their 70's

Labor Practices

In Sweden, which is known as an advanced country in terms
of preventive dentistry, the average number of teeth remaining in people in their 70's is 21, far more than the number inJapan.
The main reason for this is a difference in awareness of"preventive dentistry" which puts emphasis on "prevention" in addition to "treatment."
In Sweden, which has nationally promoted preventive
dentistry since the 1970s, people have a higher awareness oforal care than that in Japan.
A survey conducted by Lion in 2013 revealed that 69% of
Swedish people were engaged in preventive dentistry, compared with 26% of Japanese people.
The percentages of receiving periodical dental checkups
and of using dental floss and mouthwashes every day arealso higher in Sweden. In this way, building up dental healthhas taken root as a living habit.

Human Rights

In recent years, it has been revealed that dental and oral health has significant impacts on health not only in the mouth but
also throughout the body. In Japan, the "8020 Campaign" has been developed with the slogan of keeping 20 or more one's
own teeth throughout life.
With success in this campaign, the rate at which the elderly have kept their remaining teeth has improved. In anticipationof a super-aging society, it will be necessary to make further efforts in this regard.

17

What is "Preventive Dentistry"?
"Preventive dentistry" is the idea that we should focus not on treatment after getting a cavity andperiodontal disease, but on prevention before it happens.
In order to proactively protect dental and oral health, Lion considers it important to practice "preventive dentistry" in which both periodical "professional care" at dental clinics, etc. and daily "selfcare" with guidance from dentists and dental hygienists are continuously conducted.

Preventive Dent
f
o
t
p
istr
nce
o
y
C

Self-care==

Professional care
Guidance on toothbrushing and preventive treatment atdental clinics, etc.

Periodical checkups

Dental care in whichpeople do by themselves what they aretaught by dental specialists

OP I N I O NProfessional care can change self-care
Yoshinobu Asada, Professor of Tsurumi University,
Director of Tsurumi University Dental Hospital

Daily self-care is the most important factor in preventive dentistry. However, its effect is totallydifferent depending on whether the care is done with or without guidance from medical practitioners. Points to be kept in mind also vary depending on the person's age and oral status.
Therefore, it is important to review one's own self-care in response to advices from dentists through periodical
checkups. Getting praise for better dental conditions from dentists and dental hygienists would lead to self-confidence in one's own self-care.
With the synergetic effects of combining self-care and professional care, the objectives of preventive dentistry
could be achieved. This is the reason why both self-care and professional care are said to be important.

18

CSR Report 2015

Key Points of "Preventive Dentistry"
Lion's CSR

For "preventive dentistry," it is important to implement daily "self-care" and regular checkups at"professional care" at dental clinics or other facilities. Now, we are introducing the key points ofself-care and explaining about "professional care" provided by the Lion Foundation for Dental
Health (Public Interest Incorporated Foundation) (LDH).

Organizational GovernanceSelf-care
3 Key Points of "Self-care"

Leave fluorine
in the mouthCompletely remove
plaqueDon't let bacteria growFluorine is an important element
to protect dental health.

Plaque is a bacterial mass thatcauses problems in the mouth.
1 Choose a tooth brush capableof thoroughly removing
plaque.

An increase in bacteria increases
the risk of getting cavities andother problems.
1 Use mouthwash with antibacterial agent.

1 Brush your teeth with tooth-paste containing fluoride.

2 Rinse your mouth only once.

2 Use dental floss, etc. to remove

plaque from between theteeth.

The Environment

Key point 3

Labor Practices

Key point 2

Human Rights

Key point 1

2 It is recommended to use amouthwash immediately
before going to bed.

Fair Operating Practices

Conduct self-care suitable for each individual
Lion operates "ORALYSIS," a shop that has an assortment of more than
100 types of oral care goods, aiming to improve customers' self-care.
Qualified dental hygienists, "Mouth Concierges," help customers findproducts that are suited to their specific oral environment.
ORALYSIS (Japanese) URL http://oralysis.oralcom.net/

Consumer Issues

Professional Care
Professional care provided by LDH
LDH runs dental clinics focusing on the idea of"preventive dentistry."

Grand Tokyo Oral HealthCare Station

Lion Osaka Oral Care Health Station (Japanese)
http://www.lion-dent-health.or.jp/osaka/
Grand Tokyo Oral Health Care Station (Japanese)
http://ohcstation.oralcom.net/

Lion Tokyo
Dental Clinic
CSR Report 2015

Community Involvement andDevelopment

Lion Tokyo Dental Clinic (Japanese)
http://www.lion-dent-health.or.jp/meguro/

19

Educational Activities for Preventive
Dentistry by Stage of Life
Aiming at helping customers make healthy and comfortable living habits, Lion conducted educational activities for preventive dentistry through the year. With each employee aware of the importance of "preventive dentistry," we worked on company-wide educational activities in light of theconsumers' stages of life, in cooperation with outside organizations such as the local government,
schools, hospitals, and dental clinics. We also support educational activities for preventive dentistry by LDH.

Activities with hospitals and dental clinics■ Lion's activities

Distributing educational movies for oral care at obstetrics and gynecology offices● Distributing free papers disseminating the importance of "preventive dentistry" to obstetrics and gynecology offices all over the nation● Opening a maternity dental consultation website to provide consultations on oral care and conducting educational activities for preventive dentistry●

Maternity Dental Consultation Room (Japanese) URL http://www.oralcom.net/maternity/

Stages of Life

Pregnant Women

Infant and Toddler

Activities for junior-highand high school students

Activities with the local government■ Lion's activities■ LDH's activities● Conducting educational activities tomake use of dental floss take root as ahabit for junior-high and high school
students.

Disseminating information on theimportance of "preventive dentistry"
to be started from infancy, at the timeof a checkup conducted by municipalities for children at the age of one year
and a half. Distributing leaflets on "parent-child preventive dentistry" andtoothpastes with fluoride for children.
●

Promoting Internal Activities
for Preventive Dentistry

In order to disseminate the importance of "preventive dentistry toconsumers, it is important for the company to put it into practiceourselves. Lion has continuously worked on activities to increase
its employees' awareness of dental and oral care and facilitate
implementation of dental and oral care.

"ALOHA," an activity to protect the dental and oral
health of Lion's employees
Since the 1970s, internal dental checkups have been implemented as an effort toprotect Lion's employees' dental and oral health. Through the "All Lion Oral
Health Activity (ALOHA)," checkups have been conducted for all employees every
year since 2002. We encourage employees to receive periodical checkups at a dental clinic, have their oral status checked by dentists and dental hygienists, and distribute information to increase awareness of dentistry by using e-mail.

Conducting a campaign to recommend periodical
checkups at a dental clinic
As a part of our educational activities for preventive dentistry, we implemented acampaign for all employees in which part of the costs for periodical checkups at adental clinic was subsidized for applicants in 2014.
20

CSR Report 2015

Elementary School Student

■ LDH

Activities forother companies■ Jointly hosted by Lion, etc.

■ LDH's activities

Holding "Oral Health Event of Brushing Teeth for Children" for over 60,000 children in Japan and overseas
students.
●

Providing education focused on prevention of periodontal disease and instructions focused on maintenance andimprovement of teeth and oral health toemployees of various companies.
●

Instruction on how to use dental floss.

Organizational Governance■ LDH's activities●

Lion's CSR

Activities forelementary school students■ Lion's activities

Distributing a Y-shaped dental floss which can be easily used by children.
●

Human Rights

Junior-high and High School Student

Adult■ LDH's activities

Educational poster/
TV commercials
encouraging people
to receive periodical
checkups

The Environment● Promoting exercises aroundthe mouth to protect dental
and oral health. Distributing
educational leaflets.

Stages of Life
Labor Practices

Activities for the elderly

Elderly

Increasing awareness of"preventive dentistry"
through educational
posters for dental clinics
and TV commercials.

As a result of continuous internal education on self-care, Lion's employees are becoming more aware of this subject, and use interdental cleaning goods (interdental brush/dental floss) more frequently to reduce thearea which is not cleaned.

Usage percentage of interdental cleaning goods■ Lion's employees (FY2002) ■ Lion's employees (FY2014)■ 2014 comprehensive survey on oral care (Women aged 20 to 59)（%）

60 Usage rate
55.5
Usage rate
UP!
UP!
50
40.4
40
26.1
30
24.9
23.7
20
10
0

Interdental brush

29.8

Dental floss

As a result of the company-wide educational activities for preventive
dentistry in 2014, the rate of people who know the expression "preventive dentistry" and the rate of people who understand the idea of "preventive dentistry" increased. We will promote activities to inform as
many consumers as possible of the importance of "preventive
dentistry."

March 201481%

March 2015

88%

Rate of people who understand the idea of "preventive dentistry"

March 2014

52%

March 2015

61%

＊Surveyed by Lion for 1,000 women in their 20's to 40's
CSR Report 2015

Community Involvement andDevelopment

Rate of people who know the expression "preventive dentistry"

Increased awareness outside the Company

Consumer Issues

Increased awareness in the Company

Fair Operating Practices

Positive Outcomes of Educational
Activities for Preventive Dentistry

21

2014
Highlight

2"KireiKirei City-Sakaide"
Project〜A project jointly launchedby Sakaide City (Kagawa Prefecture), Lion,and Lion Chemical Co., Ltd.〜

Overview of Lion's Hand-washing
Education Activities

Social Issues
Lion has been contributing to the development of a culture of cleanliness and hygiene since its foundation. Presently, by offering products such as "KireiKirei" brand hand soaps, gargles, and hand disinfectants, we are driving efforts to help people
realize a hygienic and healthy life. However, it is a social issue that a lot of people do not know the right way to wash theirhands.
As a company with the highest share of hand soap sales in Japan, we consider it our responsibility to conduct educational
activities to inform the public about correct hand washing practices, in addition to selling products.

The Concept of Hand-washing Educational Activities
In principle, our hand-washing educational activities are "conducted primarily by employees" with the aim of realizing ahealthy life for consumers. With priority areas＊1 set, we are engaged in the activities to achieve the following goals.
＊1 Hand soap production area (Sakaide City), Locations of Lion's business sites in Japan, and Area affected by the Great East
Japan Earthquake (Ishinomaki City, Miyagi Prefecture)

The Targets

The percentages of Lion's employees participating in its hand washingeducational activities will be 20% in 2020, 50% in 2030, and 100% in 2050.

The total number of participating employees from 2012 to 2014⇒110 (4% of all employees)

Major Hand-washing Educational Activities
Activities at kindergartens and preschools such as "Project to Fight against Bacteria ＊2" and "Everybody Let's Arautan! Hand
Washing Work Out," activities at restaurants and public facilities, activities to set up "KireiKirei Hand Soap," and event activities at stores have been conducted.
＊2 A project with activities to deliver check seals, leaflets, kits for hand washing and gargling to kindergartens nationwide.

"KireiKirei City - Sakaide" Project
Lion Chemical Co., Ltd.'s Oleochemical site, the main factory for producing the "KireiKirei" Hand Soap, is located in SakaideCity, Kagawa Prefecture. The "KireiKirei City - Sakaide" Project was launched jointly by Sakaide City, Lion, and Lion ChemicalCo., Ltd. in 2014, for the purpose of spreading hygiene practices and habits to the citizens of Sakaide and having such practices
take root.
The activities centering on hand-washing educational activities will be conducted until 2017 mainly by citizens of Sakaide
City and our employees.
22

CSR Report 2015

Activities at kindergartensand preschools

Lion's CSR

Major Activities in "KireiKirei City - Sakaide" Project
Activities to set up hand soaps

Organizational Governance

Posters

Attention tools

Activities for citizens

Hand washing classes are held for teachers of kindergartens, preschools, elementary and junior-high schools.

Events such as a hand washing class for citizens are implemented and "KireiKirei" branded products are provided
on a continuous basis.

Labor Practices

Activities for teachers

Human Rights

Teaching children under the themes of "importance ofhand washing" and "the correct way to wash your hands,"
while having fun together in the Hand Washing Workout
and through picture story shows.

We set up "KireiKirei Medicated Foaming Hand Soap" atkindergartens and preschools, elementary and junior-highschools, public facilities, and other sites. In addition, we
provide hand washing-related posters and tools calling forattention.

The Environment

Left: Mr. Shuji Tamai, Policy Division, General Affairs Department,
Sakaide City
Right: Hijimaro Kobayashi, Lion Chemical Co., Ltd.'s Oleochemical site

CSR Report 2015

Community Involvement andDevelopment

Hijimaro Kobayashi,
Lion Chemical Co., Ltd.'s Oleochemical site
Lion Chemical has aimed to be a community-based
company since its foundation.
As a company producing "KireiKirei Hand Soap," webelieve it is our corporate responsibility to disseminate
hygiene practices and habits to the citizens of SakaideCity.
It makes me very happy when I meet and receive
appreciation from the many individuals, who have taken
part in the activities of the project.
I will devote my everything to ensure the success of
this project.

Consumer Issues

Mr. Shuji Tamai,
Policy Division, General Affairs Department, Sakaide City
Although it is rare for the city government to conduct anactivity jointly with a specific company, we launched a
project together with Lion and Lion Chemical Co., Ltd. forthe common purpose of promoting healthy and hygiene
practices and habits among the citizens of Sakaide City
with the aim of having such practices take root. We feelgreatly invigorated when we see children joyfully smilingwhile attending the hand washing work out.
We will do our best to promote the project for the citizens of Sakaide City!

Fair Operating Practices

Voice of the Person in Charge

23Organizational Governance

Maintaining a Sound Management
System that is Continuously
Trusted by Society
Basic Approach
Lion's top priorities for corporate governance are to increase management transparency, improve the efficiency of supervision and decision making and ensure compliance. By strengthening and improving its corporate governance system, Lion
aims to enhance its corporate value.

Corporate Governance System
Approach to enhancing functions to audit and supervise management
To evaluate our management objectively from the standpoint of social acceptability, including social responsibilities
to be fulfilled by the company and stakeholders' trust, theManagement Evaluation Committee run by outside experts
was set up in October 2003 to ensure that the opinions of
the committee members regarding the concept of the corporate governance system, directions of business and product development are reflected in management.
We introduced the Executive Officers System in March
2004, and installed two external directors in March 2006, inorder to improve management flexibility and enhance ourcapacity to audit the Board of Directors. In December 2006,

the Compensation Advisory Committee, consisting of external directors and external corporate auditors, was set up to
increase the objectivity and transparency of compensation
for directors, and other matters. Also, in January 2013, theLion Corporation Standards Regarding the Independenceof External Directors/Corporate Auditors was instituted toappoint highly independent external directors/corporate
auditors.

"The Lion Corporation Standards Regarding the Independence of External Directors/Corporate Auditors" (Japanese)
URL http://www.lion.co.jp/ja/company/about/pdf/independence.pdf

Corporate Governance System
Shareholder Meeting

Opinions and advice

Senior Executive
Committee

Board of Directors(Supervision of management)

Proposals

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

Auditing●

Decisions on execution of importantbusiness matters●Supervision of directors’ executive
performance●Supervision of executive officers

Corporate auditors(Legality audit)(Operational audit)

Monitoring

Reporting

Auditing(Chairperson: Representative Director, Chairman)

Opinions and advice on legal compliance and management policies

Auditing
Reporting Delegation Reporting

Executive Committee(Execution of operations)

Environmental Action
Promotion Committee(Chairperson: Representative Director, President)(Internal controls relating
to financial reports)

Reporting

CS/PL Committee
Safety, Hygiene andDisaster Prevention Meeting(Legality, validity, andefficiency audits;
compliance progress
audits)Departments (Performance of operations)(Business, manufacturing, R&D divisions, and functional departments)
●
●
●
●
●
●
●

Setting and management of CSR targets
Pursuing customer satisfaction
Building trusting relationships with shareholders and investors
Creating fair and comfortable working environments
Ensuring fair trade
Promoting social action programs
Protecting personal information

Auditing

Strengthening of legal
compliance and ethics

Corporate Ethics Committee
Lion Group Charter for Corporate Behavior; Behavioral Guidelines
Report on Corporate Governance (Japanese) URL http://www.lion.co.jp/ja/company/about/pdf/abo_gov.pdf＊ CS/PL Committee
CS = Customer Satisfaction
PL = Product Liability
Cross-departmental committee to promote quality assurance activities.

24

CSR Report 2015

Auditing OfficeCompensation Advisory Committee

Recommendations on director compensation

Accounting auditors

Management Evaluation
Committee

ReportingLion's CSR
Organizational Governance

Promotion of Risk Management
Improving systems to respond to various risks in business
Enhancing Business Continuity Plan (BCP)
Lion is enhancing its own systems for procurement of raw
materials, packages, and containers, production and logistics in order to minimize damages, achieve early restoration,and provide products to customers even in cases where alarge earthquake, spread of infectious disease (pandemic),or other contingencies occur.
The BCP is annually confirmed and reviewed at a meeting of the Executive Committee, mainly by the corporate
planning department, for the purpose of enabling a strong
BCP that is always suitable to management environment inwhich it must function. In 2014, the "BCP Guidelines" wasformulated, which shows basic policies, preferential businesses, and priority operations. We publicized it throughour intranet and internal newsletter to further disseminate
BCP inside the Company.

Human Rights

In order to continue providing our customers with safe andreliable products, we have appointed a Director Responsible
for Risk Management who exhaustively controls and supervises the risk of the whole Lion Group. Countermeasuresagainst risks regarding the environment, quality assurance,
and accidents and disasters are discussed at various kinds ofmeetings in advance and the Executive Committee deliberates upon the relevant matters if necessary.
In cases where physical emergencies such as natural disasters and accidents arise, in accordance with the Emergency
Response System, we report the relevant facts to the president and corporate auditors, among others, and report how
the situation is being handled to the Executive Committee
and the Board of Directors.

Labor Practices

Internal Control Systems
Internal Audits
The Auditing Office that directly reports to the president
implements audits of various business units in terms of theirlegality, validity, efficiency, and risk management in order toestablish a foundation for healthy business activities.
Results of inspections and findings are reported to thepresident. The results at the corporate level are summarized
and reported to the Executive Committee twice a year for
PDCA management of audit work and sharing of information with the business execution departments.

Fair Operating Practices

Systems have been put in place to ensure the appropriateness of the Lion Group's operations in accordance with Japan's Companies Act and the Ordinance for Enforcement of
the Companies Act. With regard to systems for evaluating
and auditing internal control over financial reporting as prescribed in Japan's Financial Instruments and Exchange Act,
we have been establishing controls at the company-wideand business-process levels. Evaluations of internal control
effectiveness are carried out by the Auditing Office, which
reports findings to the president and corporate auditors, aswell as to the Board of Directors on a regular basis.

The Environment

Enhancing systems to audit the appropriateness of operations

Consumer Issues

UN Global Compact

Community Involvement andDevelopment

The UN Global Compact (UNGC), in which Lion has participated since 2009, is a voluntary initiative ofcompanies and organizations aiming at realizing ten principles relevant to the "protection of humanrights," "exclusion of unfair labor practices," "environmental responses" and "anti-corruption." Lion is
also a member of the Global Compact Network Japan (GCNJ), and participates in subcommittee activities on a regular basis in order to promote the CSR activities of the member companies.
UN Global Compact URL https://www.unglobalcompact.org/
Global Compact Network Japan (Japanese) URL http://ungcjn.org/

CSR Report 201525

Organizational Governance

Embedding Compliance
Efforts for legal compliance and enhancement of a sense of ethics

Compliance Awareness Survey＊2
All Lion Group employees are asked every year to complete
a compliance awareness survey. This year will mark the eleventh such survey. The findings are reported to management
and feedback is provided to individual divisions. This contributes to the maintenance and strengthening of compliance systems.
The 2014 survey (about a 97% response rate from around3,932 employees) solicited opinions on a range of issues including problems with work environments.

Raising Awareness of the Hotline
To ensure full communication with temporary staff and all
our employees, an internal and external reporting system,
the "AL (All Lion) Heart Hotline," has been set up by thecompany.
In 2014, there were twelve instances of consultation orreporting, but no instances of grave misconduct were foundand all the cases were appropriately addressed and resolved.
AL Heart Hotline (Japanese)
URL http://www.lion.co.jp/ja/company/compliance/index.php

The System of AL Heart Hotline
Consulter/Informer(employees within Lion Group, temporary staff, or external business partners)
Consultations andNotifications

Internal Contact of consultation/(general manager special- notification
ized in corporate ethics)
Reporting

Feedback

External contact(lawyer)

Report results of investigationand countermeasures

Report asneededBoard of Directors

The Corporate Ethics Committee
Set up as needed

The Ethics Evaluation Committee(consisting of external experts)

AL Heart Hotline Consultations andNotifications (2014)
Power harassment behaviors

5 cases

Personnel/labor management issues

4 cases

Expenses/company assets management issues

1 caseOther

2 cases

Percentage of Employees Who Received
Survey Feedback
20

2010

Structure to promote activities(Corporate governance) (Japanese)
http://www.lion.co.jp/ja/csr/management/

Instruction

Director Responsible
for Corporate Ethics

0

Introduction of websites

Consultations andNotifications

Feedback

Report contents

Seeking solutions/Resolving problems

The Corporate Ethics Committee, chaired by the Director
Responsible for Corporate Ethics, proactively works to foster
compliance awareness within the Lion Group.
The basis for compliance is the "Lion Group Charter for
Corporate Behavior＊1." This is distributed in pamphlet form
to all employees working for the Lion Group and is publicly
available via Lion's website.
According to an annual program, e-learning and othereducations are periodically provided. In 2014, in addition togoing through and committing to the "Lion Group Charterfor Corporate Behavior," our e-learning program provided
pharmaceutical education, training regarding the basics oflabor management, risks as relevant to social media, andinformation security.

40

60

80.3％

80

100（％）
19.3％

0.3％

2011

87.7％

12.0％ 0.3％

2012

90.5％

9.2％ 0.3％

2013

91.6％

8.1％ 0.3％

2014

93.9％

5.9％ 0.1％(year)

Feedback received＊1 10 principles of the Lion Group Charter for Corporate Behavior
1. Principal Mission
5. Promotion of Working Environment 9. Practice of Corporate Ethics
2. Compliance with Public Rules 6. Contribution to the Society
10. Resolution of Problems
3. Disclosure
7. Confront Antisocial Activities
4. Environmental Issues
8. Contribution in Foreign Countries

26

CSR Report 2015

Not received No response＊2 Compliance Awareness Survey
Questionnaire survey in which respondents anonymously
answer questions on, for example, compliance with theLion Charter for Corporate Behavior, whether or not feedback was received from the Compliance Awareness Survey in the previous year, and awareness of the hotline.

Human Rights

Lion's CSR

Establishing a Framework
for Respecting Human Rights

Organizational Governance

Basic Approach
Lion has stipulated that we shall "respect human rights" and "observe the spirit as well as the letter of all laws and international rules" in the "Lion Group Charter for Corporate Behavior." Moreover, the "Behavioral Guidelines" refers to the refusalof child labor and forced or compulsory labor, promoting equal employment opportunities and fair treatment of employees,
and human rights of suppliers. In 2009, we declared our intention to support the ten principles of the United Nations Global
Compact.

Human Rights

Disseminating Human Rights Policy
Making the Lion Group Charterfor Corporate Behavior and Behavioral Guidelines take root

Labor Practices

Lion has stated its policies regarding respect for human rights in the "Lion Group Charter for Corporate Behavior" and "Behavioral Guidelines." To ensure thorough communication of the Charter to directors, Lion Group employees, and temporary
staff, we provide an opportunity on an annual basis via e-learning or by document by which we ensure the Charter is readand consented to. Also, we conduct a questionnaire survey every year to confirm the extent to which the Charter has taken
root.

Ensuring Human Rights Due Diligence
Enhancing frameworks to ensure respect for human rights inlight of stages of the value chain

The Environment

Lion has enhanced systems for reporting, correcting and following-up, and understanding the impacts of its activities on human rights in light of stages of the value chain.

An Overview of Our Initiatives for Protecting Human Rights
Stages ofValue Chain

Procurement of Raw
Materials, Packages,
and Containers● Efforts based on Pro-

Employees● Confirmation of recruitment,

evaluation, and remuneration
at each point in time
● Execution of human rights education● Creation of an environment● Establishment of thein which discrimination on the
Hotlinebasis of religion, race, and othRelated information p26
er factors is curbed

Palm oil farms● Participation in RSPO

activities● Purchasing only certi-

fied palm oil from July

● Establishment of the Hotline

Related information p26

Subjects for Clinical Trials

Customers● Aggressive pursuit ofsafety and functionalities by using our own"product management
system"Related information p40-42● Consideration for " vul-

nerable users" such as
the elderly and children,by preparing a "labeling
manual"Society/Environment

Residents aroundour factories● Environmental manage-

ment under Lion's Environmental Guidelines toprevent contamination,and compliance withlaws and regulations
Related information p32-34● Implementation of en-

vironmental assessment
ahead of construction of
new factories

Consumer Issues

Main Subjects and Each Approach

curement Principles andLion Group Supplier
CSR Guidelines
Related information p39

Use by consumers

Fair Operating Practices

Business partners

Major initiatives undertaken by Lion

● Respecting the Helsinki Declaration

Related information p38 ● Operation of the "regulations for im-

Introduction of websites
Caring for mankind (Human rights) (Japanese)
http://www.lion.co.jp/ja/csr/humanrights/

CSR Report 2015

Community Involvement andDevelopment

plementation of clinical trials" in orderto place top priority on the safety ofsubjects and ethical considerations

27

Labor Practices

Changing Awareness of
Employees through Raising
Morale and Motivation
Basic Approach
In the Lion Group Charter for Corporate Behavior, Lion calls
for "fair treatment respecting the diversity, individuality
and personality of our employees" and "ensuring a safe
and comfortable workplace to realize mental and physicalwell-being of our employees." Also included in the
Behavioral Guidelines are "to develop a better working
environment that allows flexible style of working throughpromotion of work-life balance," "to acquire excellence offunctional expertise and knowledge and provide maximum
support to employees who try hard to accomplish very
ambitious goals," and "to have sincere dialogues and discussions with employees and their representatives."

Promoting Amicable Labor-Management Relations
Lion executes labor agreements with the Lion Workers'
Union for the purposes of promoting sound labor-management relations based on mutual understanding and trust,observing the Lion Group Charter for Corporate Behavior
by realizing the social mission and responsibilities of thecompany and its workers' union, and working together toachieve growth of the company's business and maintain/improve working conditions of union members.
The agreements provide that: the company shall recognize freedom of lawful union activities by union members;
the company shall not unfairly treat union members byreason thereof; and the company and the union shall havelabor-management meetings on a regular basis to consult
with each other on an equal footing.
Operating under a union shop agreement＊1, Lion has
endeavored to build amicable labor-management relations,in which employees and management proactively conduct
activities such as reporting on business conditions and exchanging opinions about the working environment at labor-management meetings.

Human Resource Development
Promoting PDCA through the target management system and providing
opportunities for training and ability development
Improving a Training System for Each Function
In training for each function, measures to reinforce specialties in each business are offered.
In 2014, we especially enhanced training for the marketing division. To date, human resources who are active intheir respective divisions have been appointed as staff ofthe marketing division. For further improvement, we designed and started to operate a program to discover humanresources who are enthusiastic enough to continue efforts
and learning.
This program provides systematic learning opportunities
for mastering practical marketing theories and planningand designing based on insights into consumers and competitive strategies, and fosters future marketing personnel
by judging their qualifications.

＊1 Union shop agreement:
A labor agreement in which a worker is employed by a company on
condition of becoming a member of a specific labor union.

28

CSR Report 2015

Global Human Resource Development
For expansion of our overseas businesses, we are involved in
the development of global human resources on an on-going basis. For three years from 2011 to 2013, we introduced
the "Global Human Resources Development Program" foryoung and mid-career employees, and a total of 83 employees participated in the Program. From 2014, we started aneven more practical program for further development of
global human resources. This new program helps trainees
gain professional knowledge on overseas business in Japanand sends them out to locations overseas for about one year
so that they can learn the fundamentals of their business inthe field and think on their feet. Furthermore, we provide
an "overseas retail and distribution sector study tour" forsales personnel at managerial levels, and in the research
fields, develop measures to nurture human resources.

Lion's CSR
Organizational Governance

Human Resource Diversity
Using personnel capable of responding swiftly to changes
in the business environment

Offering an Opportunity to Gain Knowledge about
Jobs in the Company (Holding a Career Forum)

Since 2011, Lion has had systems that support households ofcouples who both work for the Lion Group. When a partner
is transferred within Japan or overseas, the spouse can choose
from the following three options: 1) accompany the transferredpartner while putting his or her own career on hold; 2) leave
the company with the right to be re-hired within five years andaccompany the transferred partner; or 3) change his or her own
work location to that of the transferred partner.

Implementation of Regionally Based Employees Program
Since 2013, Lion has had in place the Regionally Based Employees Program with the aim of finding and keeping excellent
personnel from among our temporary employees, who arecontributing greatly to the company, as well as enabling regular employees to choose diverse working arrangements.
The regionally based employees can select their workplacefrom seven regions in Japan that Lion has chosen for this program. Their compensation and benefits are at a similar level toregular employees in the same block. Under the program, tensuch individuals were hired from among temporary employees
in 2013 and eight in 2014.

Labor Practices

This measure was proposed by the Diverse Human Resource
Promotion Committee for the purpose of supporting the careerdevelopment of young employees.
Through a video conferencing system and other means, a symposium is held for all employees nationwide and personnel in
specific positions describe their teams and contents of their job.
In 2014, the measures were conducted in relation to sales(household products)/sales staff, and marketing-related business(pharmaceutical business department).

Support Program for Transfer of Couples Working for Lion

Human Rights

Lion has made efforts toward promoting "human resource diversity" in light of the need to respond swiftly
to changes in the business environment.
The Diverse Human Resource Promotion Committee＊2
was set up in 2010, which, with participation of employees, plans and formulates personnel measures to makediverse human resources more active.

The Environment

Employing People with Disabilities
In order to take advantage of individual abilities regardless ofwhether the persons in question have disabilities or not, we
proactively employ people with disabilities, developing corporate culture to improve working environment and support
them in the entire workplace.

Fair Operating Practices

Revision of Re-hiring System of Employees upon Retirement
Implementation of Measures for Women's Promotion (Career Development)

Employee Motivation Consultation Center

System for Re-hiring Former Employees
Lion has introduced a system to re-hire former employees who
resigned for their own reasons, aiming to encourage them tobe active again using their various experiences gained fromtheir career, lifestyle and expertise.

＊2 The Diverse Human Resource Promotion Committee
With subcommittees established in relation to three categories, "female employees," "re-hired
employees who have reached the mandatory retirement age," and "temporary workers," onwhom the Company puts emphasis, the committee plans and formulates measures to make eachof them more active, and pushes ahead with the measures in management.

CSR Report 2015

Community Involvement andDevelopment

Since 2011, the Center has received inquiries via telephone ande-mail and has conducted interviews for the purpose of helping
Lion's employees develop a positive approach to their careers.
So far, 319 employees in total have used the Center, and positive changes have been seen in their awareness and behavior.

Consumer Issues

We support women's career development by utilizing the "career plan sheet" which enables female employees to design
their mid to long-term career plan by themselves, and "virtualrole models," which depict role models in action we will seesome day in the near future as a result of our current effort.

In 2006, Lion introduced a re-hiring system of employees who
have reached the mandatory retirement age. The criteria wererevised in 2012, a year prior to the revision of the law.
The Company improved the working environment to allow
re-hired 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.
The re-hiring rate per retired staff in 2014 was 85%.

29

Labor Practices

Promoting Work-Life Balance
Building an environment where employees can deliver results whileworking flexibly
Lion strives to build an environment where employees candeliver results, while placing value on balancing work life
with private life.

Building an Environment Where Employees Can Work DynamicallySince 2010, Lion has worked to reduce prolonged work andencourage employees to take paid leaves.
In 2014, although weekly "No-overtime day" and monthly "No-overtime week" were implemented, overtime work
increased due to internal and external responses before theconsumption-tax hike.
In order to facilitate understanding of management ofworking hours, e-learning was continuously provided forall employees. Furthermore, under a labor-managementagreement, we conducted activities to systematically offer
three days paid leave per year for the purpose of encouraging employees to take paid leaves. We will make continuous
efforts in this regard.

Support for Childcare and Nursing Care
As a result of enhancing various programs and increasing
employees' awareness, the ratio of female employees taking childcare leave has been 100%. Male employees are also
taking the leave in many departments.
In addition, Lion is promoting activities to support careerdevelopment during the childcare period.
Support for Childcare and Nursing Care (Japanese)
URL http://www.lion.co.jp/ja/csr/employee/work_life/

The Work-at-home System
In February 2015, Lion introduced the "work-at-home" system as a flexible way to work, in which the workplace is not
limited to the office. When productivity can be expected toincrease by the system, we allow any employees to use thesystem regardless of whether they are engaged in childcare
and nursing care or not. In this way, reconsidering a conventional way to work, Lion is striving to improve the work-lifebalance.
While the system is initially available for limited departments, we will expand availability of the system by encouraging employees to use the system and confirming its
effects.

Next Generation Support Act
Phase 4 Action Plan

Period: April 2011 to February 2015

"Kurumin" logo

Goal:1 Have 17 or more male employees take child-care leave during the action plan period.

→17 male employees took childcare leave, including
an employee in the sales division who took leave for ayear from March 2012.
Goal:2 In 2011, raise the age of the child applicable for"exemption from overtime work 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 em-

ployees to take the leave by half-day units.

→The new system was introduced in June 2011.

Goal:4 Within the period of the action plan, implement measures

to support employees in striking a good balance between
work and childcare from the viewpoint of career development.
→Presentations of Childcare Support Programs including a symposium by employees with childcare
experience have been held since 2012. In the presentations, details of Lion's Childcare Support Programs andtreatment of relevant employees are explained, andemployees are encouraged to increase awareness ofbuilding their career.
Goal:5 In 2011, introduce an overseas transfer support

system for married couples both working for Lion.

→A system for domestic and overseas transfer was
introduced in April 2011 ＊.

Goal:6 Within the period of the action plan, introduce awork-at-home system for employees meeting therequirements prescribed by the company.
→Tests have been conducted since 2012 and the system was introduced in February 2015.

＊An incorrect description in the previous CSR report has been corrected.

Employee Data (non-consolidated)
Employees
New employees
Re-hired
Retirees

Male
FemaleMale
FemaleNumber of people%

Temporary employees
Female employee ratio (%)
Female managers

Number of people%

Employees
Number of people
with disabili%ties
Employees who
Maletook childcare
Femaleleave
Employees who
Maletook reduced
working hours
Femalefor childcare
Average overtime per month (hours)
Annual paid leave used (%)
Employees who
Number of people
resigned within
three years of%entering thecompany

2012
1,828
614
51
24
137
6.0
295
25.1
42
6.2
42
1.8
6
29
0

2013
1,854
643
67
26
181
7.9
319
25.8
44
6.2
44
1.9
5
36
0

2014
１, ７９９
６１９

６８
２９

１４２

６．
３

４４３

２６．
６

５０

６．
９

４３

１．
８

５

３４

０

49

43

４９

12.0
46.2
1

13.1
48.6
3

１４．
０

４８．
４
2

0.5

1.3

１．
０

※"New employees" includes new employees hired mid-year.
※Data as of December 31 of every year.
※Number of employees: Includes regular employees and re-hired retirees.
※Employees included in the scope of overtime work have been expandedwith the revision of the personnel employment system since 2013.
30

CSR Report 2015

Lion's CSR

Promoting Employees' Health Management

Based on the concept that the good health of employees
serves as a business foundation to support sound corporate
growth, Lion has been conducting a variety of measures.
With the Guideline for Health as our core basic principle,
Lion conducts detailed health management activities.
Guideline for Health (Japanese)
URL http://www.lion.co.jp/ja/company/about/health.htm

Organizational Approach to Health Management

Mental Health Initiatives
With our "Mental Health Basic Policy" established in
2004, Lion has taken proactive measures for the mental
health of our employees, for example, consultation after periodical checkups for all employees and a stress level checktest which started in 2006. In 2014, 96% of employees took
the stress level check test *1. The results are compiled andanalyzed by section/department in such a way that individuals cannot be identified, fed back to responsible officers,
and used for managerial training. In this way , Lion has continued organizational mental health initiatives.

Human Rights

Dental Prophylaxis Program (ALOHA)
In collaboration with the Lion Foundation for Dental Health(LDH), we have focused on the improvement of oral healthby incorporating dental checkups into the annual healthcheckups for all employees since 2002.
[ALOHA] All Lion Oral Health Activity

Labor Practices

Lion has conducted health management activities basedon discussions at a joint session called the "Health Management Promotion Committee Meeting" attended by theemployee who is responsible for health management of thecompany (The Personnel Manager), the Health InsuranceSociety and the Health Support Office.
We will continuously make improvements through PDCA
management and accumulate know-how on industrial
health.

Organizational GovernanceSupporting employees' self-management and establishing a reliable andhealthy working environment

Related information p20

Enhancing Group-wide Occupational Health and Safety Management Systemagement Rules for the Health, Safety and Disaster Prevention Management System and Safety Design Guideline for
Facilities, etc., and promote safety measures for production
equipment systematically and consistently for an even safer
workplace.

Fair Operating Practices

Based on the principle of "safety first," Lion has establishedits unique Health, Safety and Disaster Prevention Management System for domestic group companies, which added
our own disaster prevention measures to the "Occupational
Safety and Health Management System (OSHMS)*2" basedon the guidelines of Japan's Ministry of Health, Labor andWelfare.

The Environment

Establishing systems to promote occupational safety and safety of facilities

Safety of Facilities

Occupational Safety

Recently, it is conserved that most of the plant accidents
that happened at Lion and other group companies were attributed to the diminished sense in safety management andshortfalls in workers' skills and awareness.
Therefore, Lion has worked to enhance equipment safety
from a medium- to long-term perspective, with approaches
from both the hard (equipment management) and soft (operational management) sides.

Consumer Issues

In 2014, the number of labor accidents was 11, decreasing 8
from 19 in the previous year, including the number at affiliated companies. The number of lost time accidents significantly decreased to three from eight in the previous year.
In order to prevent major accidents occurring within theentire Company including overseas affiliated companies,
Lion will strengthen its structure based on Operational Man-

Introduction of websites
For the sake of employees (Labor Practices)(Japanese)

Test to grasp psychological burdens on employees (to be
obligatory in December 2015 with the revision of the Japanese Industrial Safety and Health Act).

Community Involvement andDevelopment＊1 Stress level check test

http://www.lion.co.jp/ja/csr/employee/＊2 Occupational Safety and
Health Management System (OSHMS)
A system to voluntarily conduct continuous safety andhealth management through PDCA.

CSR Report 2015

31

The Environment

Contributing to the Development of a
Sustainable Society as an
Environmentally Advanced Company
Basic Approach
In 2011, Lion announced its Management Vision (Vision 2020). As its company-wide policy to become an "environmentallyadvanced company," which is included in Vision 2020, we formulated our new environmental objective "Eco Vision 2020" in
2013. We will work on communication by, for example, increasing customers' environmental awareness through our products, in addition to achieving targeted values with the aim of "realizing a low carbon society," "realizing a sound material-cycle society" and "realizing a society harmonizing with nature."

Environmental Guidelines
Our stance toward voluntary and proactive environmental conservation
activities performed throughout the value chain
Lion's Environmental Guidelines adhere to the spirit of the "Lion Group Charter for Corporate Behavior," which states: "Weshall play a positive and active role in creating a sustainable society, harmonizing economic development and environmental
protection." In 2013, we revised the Guidelines in accordance with the formulation of "Eco Vision 2020." The revised Guidelines more clearly express our attitude toward "realizing a low carbon society," "realizing a sound material-cycle society" and"realizing a society harmonizing with nature," as well as our stance toward our efforts overseas.

Environmental Guidelines
Lion will act voluntarily and proactively to reduce its
environmental burden to the global environment in allprocesses 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 sound material-cycle society with maximum
usage of recycled resources"; and "realizing a society harmonizing with nature to conserve people's health, natural
ecosystems and biodiversity."

4 Developing Environment-Friendly ProductsContinue aggressively with product development in tune
with Lion's own "Lion Eco Standards" and in light of lifecycle assessments.

1 Aiming for a Sustainable Society
Promote an environmental management system, andthrough ongoing maintenance and improvement of thatsystem, protect the global environment.

6 Harmonizing with Nature
Conduct business activities while taking into account biodiversity and air and water environments, and proactively
address natural environment protection activities.

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

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

3 Setting and Verifying Implementationof Environmental Objectives and Targets
Correctly understand the environmental impact of our corporate activities, and as far as technically and economicallypossible, establish objectives and targets for improvement,
while at the same time formulating, implementing andregularly verifying the status of implementation of an environmental management program.

32

CSR Report 2015

5 Reducing Environmental Impact Together
with Our Business Partners
Strive to reduce environmental burdens at all stages frompurchase through provision of products to customers, incooperation with suppliers of materials, outsourcing contractors, and sales companies.

8 Promoting Disclosure of Information
Seek to maintain and promote communication with stakeholders involved in Lion's businesses. These Environmental
Guidelines are freely available to anyone upon request.
Revised January 1, 2013

Lion's CSR
Organizational Governance

Environmental Management Structure and Management System
Mechanism to promote cross-departmental environmental conservation activities
Environmental Management System

Data on the environmental burden of group companies' plants(overseas)
URL http://www.lion.co.jp/en/csr/pdf/csr_2014_17.pdf

Lion acquired ISO 14001 certification covering all its plants
in July 2001.
The certification was reviewed and renewed by the Japan
Management Association Quality Assurance Registration
Center (JMAQA) for an additional three-year term in 2013.
Lion was certified also in a surveillance audit in 2014. As a

Environmental Management Structure
Executive
Committee
Group-wide
Manager ofenvironment
management(Director of Environmental
Conservation Office)Environmental Action Promotion Committee
Chairman : Director of the Board Responsible
Secretariat : CSR Promotion Department,
Environmental Conservation OfficeMembers of Committee :Directors of production, administrative, sales,
R&D and headquarters staff divisions

Production
DivisionManager ofenvironment
management

Administrative /Sales Division
Manager ofenvironment
management

Each plant

Each office(General manager of producti
on management department)(General manager ofgeneral affair department)

R&D Division
Manager ofenvironment
management(General manager ofcorporate management
department)

Labor Practices

Status of ISO 14001 Certification

result, it was verified that the frameworks to maintain management systems were continuously operated in a proper
manner, conforming to requirements of the standards.
Including the plants of group companies in and outside
Japan, the Lion Group has obtained ISO14001 certifications
and performed operations in compliance with ISO14001,
continuously pushing ahead with its management systems
and environmental conservation activities.

Human Rights

The purpose of the Lion Group's Environmental Management System is to identify, evaluate and remedy adverse effects that our business activities, products and services haveon the environment, and to improve our environmental
protection activities on an on-going basis.
Systems for environmental management and reporting
activities have been enhanced with the aim of responding
to the environment globally. Data on overseas group companies is available on our website.

Affiliatedcompanies

Each laboratory
The Environment

Legal ComplianceFair Operating Practices

In regard to revisions of environmental laws and regulations - namely, the Act on the Rational Use of Energy, the Act on
Promotion of Global Warming Countermeasures, the Act on Confirmation, etc. of Released Amounts of Specific Chemical
Substances in the Environment and Promotion of Improvements to the Management Thereof, the Act on the Evaluation ofChemical Substances and Regulation of Their Manufacture, etc., and the Waste Disposal and Public Cleansing Act - the Environmental Conservation Office collects and manages information from administrative agencies and industrial associations
to keep the related departments updated about such information. In addition, with its unique "waste management regulations" established, we have conducted thorough management.
There were no violations resulting in a fine or other penalties during 2014.

Pollution Prevention
Consumer Issues

Production activities conscious about air and water quality
Lion also implements voluntary initiatives for reducing emissions of chemical substances, including nitrogen oxides (NOx),sulfur oxides (SOx), particulate matter and volatile organic compounds (VOC). We also strive to reduce Chemical Oxygen Demand (COD) with improvement in reliability of wastewater processing facilities and periodical maintenance.
Data on management of chemical substances in compliance with the PRTR system* for each business location is available
on Lion's website.

Community Involvement andDevelopment

Site Report (Japanese) URL http://www.lion.co.jp/ja/csr/report/＊ PRTR system
A system to measure, aggregate, and publicize
emissions of toxic chemical substances, etc.

CSR Report 2015

33

The Environment

Enhancing Group-wide Management of Chemical Substances
Chemical substances are indispensable for people to lead comfortable and fulfilling lives. Failure to properly manage chemical substances, however, can result in accidents that put human health and ecosystems at enormous risk. In addition to compliance with related laws and regulations, Lion strives to ensure strict management of chemical substances at all stages fromproduct development to use/disposal in accordance with our own independent standards.
Appropriately Handling Chemical Substances (Japanese) URL http://www.lion.co.jp/ja/csr/env/enhancement/

Lion's Chemical Substance Management
1 Product Development

2 Production

3 Transportation

4 Use and Disposal

Safety verification andmanagement of chemical
substances contained in raw
materials, packages, andcontainers

Measurement and reduction of chemical substancereleases

Provision of safety information during transportation

Provision of information on
safety and handling ofchemical products

Engaging in Progressive Environmental Activities
Setting and pursuing environmental targets in light of global issues
Achievements in Eco Vision V-1 (2012 to 2014) and Plans of Eco Vision V-2 (2015 to 2017)
As all employees of the Lion Group considered and promoted measures to attain the targets, almost all of the plans of
Eco Vison V-1 (2012 to 2014) were achieved.

Greenhouse gas emissions from business activities in Japan
We reduced greenhouse gas emissions by just 29%, failingto attain the target of a 40% reduction or more by 2014
(compared to 1990, emission intensity per unit total revenue). However, the reason for failing to attain the target
was an increase in factors to convert electricity consumption
into greenhouse gas emissions ＊. When calculating with thefactor set for 2011, the greenhouse gas emission would havebeen reduced by 40%. In short, we were able to reduce energy consumption equivalent to the target of a reduction in
CO2 emissions. In spite of the change in the conversion factor, we will remain committed to reducing greenhouse gas
emissions without changing the target value for 2020.

Greenhouse gas emissions from overseas business activities
While individual government where our business activities
are concerned has not set a target value, a 1% reduction peryear (compared to 2010, emission intensity per unit of production) is an aggressive target in accordance with Japan's
Act on the Rational Use of Energy. As starting operation of
new plants and other changes in business are expected, thetarget is planned to be reviewed every three years.
In 2014, we failed to attain the target with a 2% increase(compared to 2010, emission intensity per unit of produc-

34

CSR Report 2015tion). With a temporary increase in energy consumption
at time of trial operation of enhanced facilities in a plantin Thailand, and an expansion of output at a new plant ofLion Eco Chemicals (Malaysia), the percentage of businesscentering on chemical syntheses, which greatly influenced
greenhouse gas emissions, increased. Setting a new target
value in consideration of our business growth, we will continuously make efforts to reduce emissions by 1% per year.

Procurement of plant-derived oils that take biodiversity conservation into consideration
With the target of switching all palm oils purchased to RSPO
certified ones by 2015, we did so from July 2014. We also set
a new target for 2020.
In relation to other items, all targets were achieved.
In the plan of Eco Vision V-2 (2015 to 2017), we set targets
for 2017 to continuously promote environmental conservation activities, aiming at achieving the on-going targets of
Eco Vision 2020.
＊ Conversion factors that Japanese electric companies use have become

higher due to a shift from nuclear power generation to thermal power
generation after the Great East Japan Earthquake in 2011.
For example: Tokyo Electric Power Company
0.375 in 2011 → 0.530 in 2014 (kg- CO2/kWh)Categories

Target value for 2014

Performance in 2014

Lion's CSR

Eco Vision V-1 (2012 to 2014) Performance
Target values of Eco Vison V-2 (2015 to 2017) and Eco Vision 2020
Target value for 2017

Target value for 2020

Emission intensity per unit
total revenue
7% reduction (compared to 2010)
52% reduction (compared to 1990)
Absolute quantity
51% reduction (compared to 1990)

Emission intensity per unit
total revenue
9% reduction (compared to 2010)
53% reduction (compared to 1990)
Absolute quantity
41% reduction (compared to 1990)

Within thecompany③Reduction ofgreenhouse
Emission intensity per unit
gases from busi- of production
ness activities, 1% reduction year-on-year
overseas

Emission intensity per unitof production
2% increase(compared to 2010)

Emission intensity per unitof production
1% reduction year-on-year(compared to 2014)

Emission intensity per unit ofproduction
1% reduction year-on-year

Outside thecompany④Reduction ofgreenhouse gases
from post-use
products,
overseas－

Reduction of 67 thousand tons
annually－

Reduction of 100 thousand
tons annually

Within thecompany⑤Reduction ofwater use inbusiness
activities

Water use per unit total
revenue
9% reduction (compared to 2010)
30% reduction (compared to 2000)
Absolute quantity
29% reduction (compared to 2000)

Water use per unit total
revenue
14% reduction (compared to 2010)
33% reduction (compared to 2000)
Absolute quantity
36% reduction (compared to 2000)

Water use per unit total
revenue
15% reduction (compared to 2010)
34% reduction (compared to 2000)
Absolute quantity
35% reduction (compared to 2000)

Water use per unit total
revenue
15% reduction (compared to 2010)
35% reduction (compared to 2000)
Absolute quantity
23% reduction (compared to 2000)

Outside thecompany⑥Reduction ofwater usage athouseholdusing ourproducts

Water use per unit total
revenue
14% reduction (compared to 2010)
43% reduction (compared to 2000)
Absolute quantity
39% reduction (compared to 2000)

Water use per unit of total
revenue
14% reduction (compared to 2010)
44% reduction (compared to 2000)
Absolute quantity
45% reduction (compared to 2000)

Water use per unit total
revenue
15% reduction (compared to 2010)
44% reduction (compared to 2000)
Absolute quantity
44% reduction (compared to 2000)

Water use per unit total
revenue
17% reduction (compared to 2010)
45% reduction (compared to 2000)
Absolute quantity
33% reduction (compared to 2000)

Waste⑦Zero emissions
within thecompany ＊2

Zero emissions at all domestic
production sites

Zero emissions at all domestic
production sites－

Zero emissions at all domestic
production sites and offices

Wastewater⑧Recycle offactory wastewater discharge

－

－

－

Recycling 95% or more of thewastewater at multiple plants

Procurement⑨Procurement ofplant-derived
oils that takebiodiversity into
consideration

Obtain RSPO＊4 Supply Chain
certification and purchasecertified oils (Target for 2015:
All palm oils purchased to be
RSPO certified)

Biodiversity⑩Increase biodiCarried out in all Lion's
versity conserva- factories
tion activities

Water

Fair Operating Practices

Emission intensity per unit
total revenue
4% reduction (compared to 2010)
51% reduction (compared to 1990)
Absolute quantity
51% reduction (compared to 1990)

The Environment

Emission intensity per unit
total revenue
4% reduction (compared to 2010)
51% reduction (compared to 1990)
Absolute quantity
48% reduction (compared to 1990)

Labor Practices

Outside thecompany②Reduction ofgreenhousegases frompost-use
products

Human Rights

Emission intensity per unit
total revenue
34% reduction (compared to 2010)
49% reduction (compared to 1990)
Absolute quantity
40% reduction (compared to 1990)

Organizational GovernanceWithin thecompany

Emission intensity per unit Emission intensity per unit
total revenue
total revenue
9% reduction (compared to 2010) ＊1 23% reduction (compared to 2010)＊1
40% reduction (compared to 1990)
29% reduction (compared to 1990)
Absolute quantity
Absolute quantity＊1
32% reduction (compared to 1990)
41% reduction (compared to 1990)

Greenhouse gases (domestic)

Realizing a Sound Material-Cycle Society

Emission intensity per unit
total revenue
23% reduction (compared to 2010)
40% reduction (compared to 1990)
Absolute quantity
39% reduction (compared to 1990)

Greenhouse gases(overseas)

Realizing a Low Carbon Society①Reduction ofgreenhousegases frombusiness
activities＊3

Carried out in all Lion's
factories－

Carried out in all domestic sites

80% increase in consumer
participation in our awarenessactivities(compared to 2010)

100% increase in consumer
participation in our awarenessactivities(compared to 2010)

60% increase in consumer
participation in our awarenessactivities(compared to 2010)＊1 Calculated with the 2011 factors to convert electric power consumption to CO2 emissions, the reduction of greenhouse gas emissions from ourbusiness activities in 2014 would reach the target as shown below. Therefore, these unachieved targets are considered attributable to the increased
conversion factor.
Emission intensity per unit of total revenue: 23% reduction (compared to 2010), 40% reduction (compared to 1990), Absolute quantity: 43%
reduction (compared to 1990)＊2 The recycling ratio of total waste generation is 99% or more, which does not include residues of recycling.
＊3 Wastewater from production processes ＊4 Roundtable on Sustainable Palm Oil

CSR Report 2015

Community Involvement andDevelopment

Education

50% increase in consumer
participation in our awarenessactivities(compared to 2010)

All palm oil derivative
purchased to be RSPO certified

Consumer Issues

Harmonizing with Nature

Aware- ⑪Environmental
ness andawareness andEducation education forin theconsumers
Society

Obtain RSPO Supply Chain
Start purchase of RSPO
certification, all palm oils
palm oil derivative
purchased to be RSPO certified certified(2015)
from July

35

The Environment

Harmonizing with Nature
Lion has assumed a leading role in tackling water-related environmental issues such as bubble floating occurred in rivers andeutrophication of waterways linked to the use of detergents, and has considered biodiversity conservation at each stage
from raw material procurement to disposal. However, in order to receive and preserve the blessings of biodiversity into the
future, it will be mandatory for us to coordinate with local communities to focus on conservation of biodiversity and promote sustainable use thereof. Also, it is important to promote a shift in lifestyle of consumers through products that takebiodiversity into consideration, and to contribute to the realization of a society harmonizing with nature.
To this end, Lion will contribute to the development of a sustainable society through its business by ascertaining the natural resources used in business activities and the impact on biodiversity throughout the value chain and carrying out biodiversity conservation activities that lead to the expansion of opportunities and reduce the risks. Also, by having each of ouremployees participate in activities to conserve biodiversity as part of our environmental education, we will spread awarenessof biodiversity conservation to all our office sites.

Overview of Our Business Activities Taking Biodiversity Conservation into Consideration＊1
Biodiversity on Watershed ecosysteminrawmaterial
which Lion relies
origination sites

Corresponding stagesof value chain

Key natural
resources usedby LionProcurement of raw
materials, packages,
and containers● Plants used as raw

materials (oil palms
etc.)● Impact on natural

Possible major
impact of ouractivities on
biodiversity

environments ofpalm oil growers
and local communities (water contamination and impact
on wildlife habitats
caused by illegal
logging of tropicalforests)

Watershed ecosystem
where our plants arelocatedProduction● Cooling water and raw

water used for equipment
cleaning etc., which areused in plants● Impact of undergroundwater intake by plants on
surrounding natural environments and local communities● Impact of wastewaterfrom plants on surrounding natural environments
and local communities

Watershed ecosystem where consumers resideUse by consumers

Disposal by
consumers● Service water at the time of us-

ing our products－● Impact of water intake by con-

● Impact of● Development of water-saving● Surveying en-

sumers on surrounding naturalenvironments and local communities

wastewater andwaste packaging
materials fromconsumers on
surrounding
natural environments and local
communities● Impact of light and odors

from plants on surrounding natural environments
and local communities● Promotion of pro-

Biodiversity conservation activities

Activities
to reducerisks

curement of sustainable palm oils
(participation in
RSPO and purchaseof RSPO certified
oils)
Related information p38● Conservation of rivers

and other ecosystems byimplementing purification technologies on discharged wastewater● Reduction of plant wastes－

vironmental
impact of surfactants
Related information

WEB①

Related information WEB①
● Conservation and moni-

Activities
to expandopportunities

detergents● Development of highly biodegradable detergents
Related information WEB②

toring of habitats on thewatershed where factories
are located (Activities toprotect endangered loggerhead sea turtles, activities related to biotopes,
etc.)
Related information WEB①

● Educational activities regarding care ofwater and natural environments (forest improvement activities under the name of Lion
Forest, conducting the Rainwater Utilization
Ideas Contest, conservation of river environments through the Top Eco Project＊2,
and water-related environmental researchsupport through the Japan Society on Water
Environment).
Related information p47,WEB ③ and ④● Promotion of 3Rs (Refills,

condensing of content tomake products more compact, and development ofcontainers, e.g., recycled PET(polyethylene terephthalate)bottles and containers withthin-wall molding)
Related information

p44,WEB ⑤＊1 Watershed: Ecosystems including forests, rivers, domestic woodlands (Satoyama), tidal flats and beaches that are connected by water.
＊2 Top Eco Project: A project in which 1 yen per Top Platinum Clear product is donated to the "Let's Make Beautiful Rivers Fund."36

CSR Report 2015

Lion's CSR

Realizing a Low Carbon Society/ a Sound Material-Cycle Society
Lion has worked to reduce greenhouse gas emissions, as well as recycling and effective use of resources at each stage fromraw material procurement to disposal. Detailed data is available on our website. We will promote activities toward realization of a low carbon society/ a sound material-cycle society.

Organizational Governance

Overview of Our Business Activities Toward Realization of a Low Carbon Society/a Sound Material-Cycle Society
Corresponding stages Procurement of raw
materials, packages,of value chain
and containers

Production● Substituting

Related information

WEB②

Factories● Improving energy efficiency by review-ing production processes, introducing
energy-saving equipment at renewing
facilities, and downsizing products
Related information p44

Office/Facilities

ers' environmental awarenessthrough products (The environmental label is attached to
products that meet the "Lioneco-standards")
Related information p44● Company-wide energy-saving activities ● Reducing power consumption

Activities forrealizing a low
carbon society

including the administrative & sales
division and the R&D division

Distribution after shipment● Increasing the rate of modal shift● Using plant-derived

materials (renewable raw materials)● Using recycled ma-

terials

Production

Factories● Promoting zero emissions

within the company● Reducing factory wastewater discharge● Use of recycled water

green purchases

Related information WEB②

● Education to increase consum-

ers' environmental awarenessthrough products (The environmental label is attached
to products that meet "Lioneco-standards")
Related information p44● Reducing water usage during

use of our water-saving products
Related information WEB②

Related information

WEB⑤

Disposal by
consumers● Promoting 3Rs(Refills, condensingof content to makeproducts more compact, and development of containers,e.g., recycled PET(polyethylene terephthalate) bottles
and containers withthin-wall molding)Fair Operating Practices

Office/Facilities● Promoting company-wide

Use by consumers

plant-derived
materials for petroleum resources● Reducing waste
by downsizing
products

The Environment

Corresponding stages Procurement of raw
materials, packages,of value chain
and containers

during use of our power-saving
products (involving decreasing
the number of times of rinsing
associated with the use of detersents that only reauire one
rinse )● Substituting

Labor Practices

during transportation of products suchas shifting freight from truck to rail orship.
● Improving logistics efficiency by increasing the transport loading rate,
etc.
Related information WEB⑥

Activities forrealizing asound material-cycle society● Education to increase consum-

Disposal by
consumers

Human Rights

plant-derived materials for petroleum
resources

Use by consumers

Related information

P44, WEB⑤The websites below are all in Japanese.
Consumer Issues

Web ① [Biodiversity Conservation Activities at Each Site/ Surveying the Environmental Impact of Surfactants "MES," "MEE," etc.]
URL http://www.lion.co.jp/ja/csr/env/biodiversity/
Web ② [Realizing a Sound Material-Cycle Society] URL http://www.lion.co.jp/ja/csr/env/resources/
Web ③ [Natural Protection Activities] URL http://www.lion.co.jp/ja/csr/community/conservation/
Web ④ [Lion's Initiatives for Biodiversity] URL http://www.lion.co.jp/ja/csr/community/conservation/
Web ⑤ [3Rs for Minimizing Containers and Packages] URL http://www.lion.co.jp/ja/csr/consumer/3r/
Web ⑥ [Reduction of Greenhouse Gases (Group Companies in Japan)] URL http://www.lion.co.jp/ja/csr/env/climate/Community Involvement andDevelopment

Introduction of websites
To Protect the Earth's environment (The Environment) http://www.lion.co.jp/ja/csr/env/
Everyday. For the Earth. http://www.lion.co.jp/ja/csr/env/ecolion/

CSR Report 201537

Fair Operating Practices

Promoting CSR Activities throughout
the Value Chain
Basic Approach
In accordance with the "Lion Group Charter for Corporate Behavior" and the "Behavioral Guidelines," we have made efforts
to "engage in fair, transparent and free competition and sound transactions" while "maintaining sound and proper relationships with government and political bodies." We also require business partners to comply with laws and regulations.
Furthermore, Lion has expressed its support for the ten principles of the UN Global Compact since 2009, and has made it
clear that the company is serious about preventing bribery and corruption.

Promotion of CSR Procurement
Procuring sustainable raw materials, packages, and containers,
and encouraging suppliers to conduct CSR activities
In our initiatives across the value chain, we believe it is oneof our key issues to enhance our partnerships with material
suppliers and outsourcing contractors. In order to alleviate
any negative impact of our business activities on the environment and society, and sustainably develop mutual operations, both our suppliers and our company need to revitalize
CSR activities.
Also, regarding the palm oils used in methyl ester sulfonate (MES), which is an environmentally-friendly surfactant
and plant-based detergent material independently developed by Lion, it is critical to promote procurement of sustainable palm oils.
Excellent features of "MES" (Japanese)
URL http://www.lion.co.jp/ja/csr/env/resources/index.php#plant-resource

Aiming for Sustainable Procurement of Palm Oils
We are actively promoting the utilization of plant-basedmaterials as carbon neutral materials. As one of the plantbased materials, we are using palm oil – the oil that is
produced in the largest quantity globally. Palm oils are produced mainly in Malaysia and Indonesia. Palm oil plants areproductive and the oils can be harvested throughout theyear, with the production volume increasing year after year.
However, at the sites of production, as a result of the sudden explosion of production, a number of issues have arisensuch as the logging of tropical forests for development of
new farms leading to a shrinking of wildlife habitats. Also,
terrible labor conditions with very little consideration for
health and labor safety in inappropriate farming operations,very low wages, improper treatment of migrant workers,
child labor, and many other labor-management issues lacking social fairness have been raised.
Lion has been a member of the Roundtable on Sustain-

able Palm Oil (RSPO＊1), which attempts to solve all theabove-mentioned issues, since 2006.
In 2012, Lion Chemical Co., Ltd.'s oleochemical production
site passed the supply chain certification system inspection
and was certified as a plant that was allowed to handle
RSPO-certified palm oils. As a result of this, Lion started procuring RSPO-certified palm oils in 2012.
We have set our goal to complete the switch of all palmoils to be used to certified palm oils by the end of 2015, andall purchased palm oil became certified one in July 2014.
Subsequently, we set new goals toward 2020 as follows:
2015: Starting purchase of RSPO certified
palm oil derivatives
2020: All palm oil derivatives to be RSPO
certified
We will continue with our effort to procure sustainablepalm oils into the future.

CERTIFICATERSPO SCCS

CERTIFICATE CODE: CU-RSPO SCCS-826807
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.

Certificate holder information
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:* 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.

Storage tanks for certified palm oils

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

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

RSPO supply chain certification for
Lion Chemical Co., Ltd.

The RSPO sets forth 8 principles and 43 criteria that apply to sustainable palm oil production, including those with regard
to "environmental responsibility and conservation of natural resources and biodiversity," "responsible development of newplantings" and "responsible consideration of employees and individuals and communities affected by growers and mills,"
and only certifies palm oils produced in compliance with the principles set forth for sustainable palm oil.

38

CSR Report 2015

Lion's CSR

Promotion of CSR with Material Suppliers and Outsourcing Contractors
In 2014, we made it possible to conduct all self-checks online so that our business partners can conduct self-checks more efficiently. Also by sending feedback based on the results to the respondents, systems to continuously promote CSR procurement
were established.
We will continue promoting CSR activities together with our business partners.

Organizational Governance

Timeline of approach to CSR procurement
Instituted the Basic Policy Regarding Purchasing for appropriate procurement of raw materials, packages, and containers, aswell as products.

2008

Established the Procurement Principles that clarified our social and environmental considerations.
Conducted a questionnaire survey for domestic and overseas material suppliers and outsourcing contractors about theircorporate activities regarding legal compliance, product service quality and safety, environmental considerations, labor andhuman rights, and fair business transactions.

2013

Revised our Procurement Principles and clarified our stance to select business partners in light of legal compliance, environmental conservation, and respect for human rights.
Established the Lion Group Supplier CSR Guideline＊2that shows the CSR activities we expect material suppliers and outsourcing contractors to perform, and ask them to conduct self-checks on their own CSR activities.

Human Rights

2005

Procurement Principles (Japanese) URL http://www.lion.co.jp/ja/company/compliance/procurement.php
Lion Group Supplier CSR Guideline URL http://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/eng.pdf

Flow from asking for self-checks to sending feedback
Implementation ofself-checks

Lion asks material suppliers
and outsourcing contractors
to carry out self-checks.

Material suppliers and outsourcing contractors answer
questions online.

Analyzing answersof self-checks

Feedback is sent to all business partners and if necessary,
we ask for improvement.

Answers are analyzed to
identify business partners
that need to be improved.

example, we include an explanation about trends of CSR in the e-mail to ask for selfchecks. For self-checks, three-stage checking criteria that correspond to the degrees of
initiative are set for each item and a glossary is provided.

Requested
improvement9%

No need for
improvement
78 %Coverage:
Total of 656 companies(Domestic :558, Overseas :98)

Fair Operating Practices※We make efforts to have our business partners understand the importance of CSR; forYet to respond
13 %The Environment

Feedback and Improvement

Labor Practices

Asking for selfchecks

Aggregate Results of Overall Selfchecks Based on the Lion Group Supplier CSR Guideline

Outline of Results● 78% of material suppliers have no need for further improvements in any items. 9% need improvement in more than
one item. 13% did not respond.
● Out of the 13% that did not respond, 46 companies of which information on CSR could not be confirmed from CSR
Reports, etc., will be approached again for their cooperation.

Consumer Issues

Introduction of websites
For ethical business operations (Fair Operating Practices) (Japanese) http://www.lion.co.jp/ja/csr/businesscustom/

Guideline including the following 5 subjects and 21 items
1. Human Rights/Labor Practices
2. The Environment
3. Fair Operating Practices

4. Consumer Issues
5. Overall

URL

Japanese http://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/jpn.pdf
Englishhttp://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/eng.pdf

Chinese http://www.lion.co.jp/ja/csr/businesscustom/valuechain/pdf/cn.pdf

CSR Report 2015

Community Involvement andDevelopment＊2 Lion Group Supplier CSR Guideline

39

Consumer Issues

Pursuing Customer Satisfaction
by Creating Safe and Trustworthy
Products
Basic Approach
Lion carries out quality assurance activities at all stages,
from the very beginning of the product creation processuntil customer consumption of our products, in order toprovide products that will satisfy our customers. Specifically,by identifying key requirements for each stage of corporate
activities - product planning, product development, manufacturing, sales, and customer support - 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 metrics including
function and performance. Furthermore, we endeavor toprovide clear and easy-to-read labeling for our customers.
During manufacturing, thorough quality control is performed within each process, and products that have passed
inspections are shipped with identifiable data for each lot,which is effective for after-sale management.
A variety of information is relayed through explanations
about our products and by providing samples to wholesalers
and retailers.

Product Development Incorporating Customer Opinions

Maximization of customers' satisfaction
Customers

Management

Customer support
Flow of developing safe, high-quality products

Product planning

Customer opinions and market
survey findings are reflected inplanning in the form of quality
objectives that will ensure
customers are fully satisfied.

Product development

Products are developed bytranslating quality objectives
into technical parameters fordesign quality.

Manufacturing

Raw materials and production
processes are managed tolead manufacture of productswith consistent quality.

Sales

Product information iscommunicated in an accessible
manner so that customers canascertain the product featuresand usage.

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

Enhancing Group-wide Quality Assurance System
Enhancing the mechanism to develop safe and high-quality products
in Japan and overseas
To deliver on our promise of "offering superior productsthat are helpful in the daily lives of people," we are promoting the manufacturing of safe and high-quality productsthat can satisfy our customers by putting in place a quality
assurance structure based on the Quality Policy that we established in 2008.
In 2014, the "Pharmaceutical Affairs and Quality Assurance Department" was established, by consolidating thepharmaceuticals division and quality assurance division, inorder to build quality assurance and development support
40

CSR Report 2015

structures across all functions of Lion including our overseas
companies as well as a broad range of fields from consumables and pharmaceuticals to food.
As our functional food business grows and the businessscale of our group companies expands domestically andoverseas, the demands from customers have become morediverse and the social needs for higher quality products
have increased. In response to them, we will provide customers with safe and high-quality products.

ProductPlanning

Planning products that further satisfy our customers
Analysis/
Deliberation

Lion’sproposalMarketingresearchMarket analysis
Customer
research

Executive Committee

・Marketing
research results
・Concept
・Target quality level

Human Rights

Building safety and quality into products❶ Function/Performance❷ Usability❸ Safety❹ Product stability❺ Environmental friendliness❻ Appearance (including design)❼ Compliance with laws andLabor Practices

Production Engineering Meeting

Seven metrics

Discussion and approval of development results

Product Planning Meeting
Discussion and approval of commercialization of the productExecutive Committee

regulations and sself-imposed standards

At the completion ofdevelopment, the validity of thedeveloped product is confirmed.

Decision of commercialization

Process Safety
Verification Meeting

The Environment

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

Discussion and approvalof development results

Deliberation on andchecking of labeling

Deliberation oncontents and containers
Quality verification

Safety assurance in the
manufacturing process isconfirmed.

Quality in trial manufacturing
is evaluated.
Market reception is surveyed.

Quality control is performedin each process.

Storage (shipment)

Product freshness is managed.
Consumer Issues

Quality of raw materials,
packages, andcontainers is confirmed.

Manufacturing

Fair Operating Practices

Quality confirmation under mass production

Preparation for initial manufacturing

Sales

Product planning meeting

Preparing ofa product
proposalMarketing research

Manufacturing

Deliberation and approvalof the proposal

Organizational Governance

Customer
opinions

Product
Development

Lion's CSR

Developing Safe, High-quality Products

Provision of information about product quality
Information on products ismade available via displays
and samples at stores, andnewspapers, television, ourwebsite and other media.

CSR Report 2015

Community Involvement andDevelopment

Information is provided towholesalers and retailers toensure communication of
product features and usage tocustomers.

41

Consumer Issues

Approach to Safety and Reliability
We evaluate the safety of our products at the raw materials,
packages, and containers stage and upon actual use so that
our customers can use our products without any concern.

Safety of Materials
We first examine the materials to determine their safety.
As the next step, we determine whether to use a particularmaterial after evaluating the sample and supplier in order
to secure quality above a certain level. In using the materials, they are classified into "drugs and food," "quasi-drugs
and cosmetics" and "miscellaneous," and their quality is inspected based on the inspection items and testing methods
appropriate for each classification before they are actuallyaccepted for use.

Safety During Product Use

The inquiries and points raised by the customers are registered in a database under a stringent personal information
management structure and then shared at the corporate
level via an information sharing system, with the exceptionof personal information, so that such information becomes
available for product improvement and new product development.
In 2014, the information sharing system was updated toallow more employees to hear customers' opinions.
As employees of various departments became able toreadily search customers' opinions while responses to customers became more efficient, we were able to listen to
more customer opinions.
Among such information, the information considered
to affect customer satisfaction is passed on to top management on a daily basis via a VOC Daily Letter, and efforts are
made to enhance quality by ascertaining the customers'
perspective and through early consideration and handlingof improvement measures led by the product planning department. In 2014, we sent out 240 VOC Daily Letters.
[VOC]Voice of Customers

Flow of Customer Support

Response

Flow of the voiceof customers

Boards of Directors,
VOC
Daily Letter Corporate Auditors
andExecutive Officers

VOC
reportingmeeting

Database

All companies

Information
sharing system

Product development and improvement

Inquiries
Comments
Requests

Customer Support

Customers

By considering the various uses of our products as well as
product use by vulnerable customers, we perform safety
evaluation of our products from the perspective of avoiding
risks at the stage of product design.
We use a checklist in our evaluation to determine whether the product design ensures safety from "normal use"cases to "mistaken use" cases. We evaluate if risks can bealleviated even in the event of "irregular use," and also
evaluate whether risks can be tolerated. Such evaluations
are reflected in our measures to secure product safety, suchas by providing sufficient warnings as needed.
Also, in the Quality Verification Meeting for quality confirmation held with representatives of related divisions,
we perform checks from the perspective of our customers
during their actual use of our products in order to prevent
damages during product use as well as failure to confirm all
safety check items.
In preparation for possible problems with our products,
we have in place an internal system to quickly take countermeasures such as product recall.

Initiatives to Listen and Respond to Our Customers

Product manufacturing that makes the most of the voice of customers(Japanese)
URL http://www.lion.co.jp/ja/support/voice/Scope of Safety Confirmation

Recklessuse

Unforeseeable andunreasonable usage

Lower risk to acceptable Irregularlevel and provide warnings
use

Foreseeable usage, but defying
accepted norms (overly excessiveuse, or use for purposes very
different to those intended)

Mistakenuse

Usage not as intended
by Lion but whichmust be expected

Normaluse

Usage as intended
by LionRequired safetyassurance

42

CSR Report 2015

Current Status of Recall of Varsan
Hyosatsu Jet for Flying Insects andVarsan Hyosatsu Jet for Crawling Insects
Because the "Varsan Hyosatsu Jet for Flying Insects"
and "Varsan Hyosatsu Jet for Crawling Insects" ledto fire-related accidents, Lion has been voluntarily
recalling such products from August 27, 2007.
As of February 2015, 1.48 million of such products
have been recalled (recall rate: 45.7%). We would liketo ask any of our consumers who still have any of theseproducts and reside in Japan to assist in the recall.
Customer Support for Recall of Varsan Hyosatsu Jet
SpraysToll-free: 0120-670-225
Open: 9 a.m. to 5 p.m. (Japan time)(Except Saturdays, Sundays, public holidays, yearend/new year's holidays, and summer holidays)

Lion's CSR

Providing Information Useful for Daily Life and Promoting Educational Activities
Provision of information that contributes to a healthy and comfortable life

Opinions ofconsumers

Information collection andaccumulation

Human Rights

Introduction of Activities by Meisters of Daily Life

Research data

Organizational Governance

The Lion Comfortable Lifestyle Laboratories proactively communicates with consumers, aiming to provide more information that
contributes to a healthy and comfortable life.
Led by the Meisters of Daily Life with expertise on oral care,health care, fabric care, and living care, we have created opportunities to communicate with our customers and delivered abundantlife-related information through the website, events, and publications.
We also take into account customers' opinions obtained
through these activities to create information that is of use in thedaily lives of customers.

Creation of
usefulinformation

Transmission ofnews

Consumers

Publications

Documents

Information dissemination

The Environment

Media, etc.

EventsMeisters ofDaily Life

Labor Practices

Comfortable Lifestyle
Laboratories

WebsiteLiving care seminars using "CHARMY Magica" (dishwashing detergent)

Fair Operating Practices

Voice of the Person in Charge"Lidea" Established to Enhance Information Provision from the Website
Yuki Shimoya, a staff member in charge of Lidea, The Lion Comfortable Lifestyle Laboratories

ing from everyday life.
We intend to make Lidea more interactive as a place
for communication between Lion and customers.
We will also reinforce information provision in collaboration with other companies, and improve the contents of Lidea as a platform connecting Lion and thesociety. URL https://lidea.today/ (Japanese)

Consumer Issues
Community Involvement andDevelopment

Lidea is Lion's new website to deliver lifestyle information in response to the modern society in which digital
media is widespread.
Its objective is to share with consumers delightfulideas (tips and information) that make their daily lives
comfortable or enrich their hearts.
Information is provided mainly by the "Meisters ofDaily Life," specialists who have research experienceand expertise on "fabric care," "living care," "kitchen," "dental and oral health," "beauty and health ofbody," and "childcare."Lidea is featured by providing reliable information
based on robust investigation and verification concerning various questions and matters of concern aris-

CSR Report 201543

Consumer Issues

Offering Products and Information that Contribute to the Development of a Sustainable Society
Development of products with less load on the society and environment,
and educational activities
As a focus to minimize the number of containers andamount of packaging materials we use, Lion is proactively
promoting the 3Rs (Reduce, Reuse, and Recycle). For minimizing containers and packaging materials, we have evaluation items established for each stage of "procurement of
packages," "distribution," and "disposal" based on Lion's
eco-standard from the perspective of product lifecycle.
Lion's eco-standard (Japanese)
URL http://www.lion.co.jp/ja/csr/ecolion/

Example of Environmental Label Attachedto ProductsThis container is made with approximately
10% (by weight) recycled plastic.
"CHARMY Magica" (dishwashing detergents)

Conserve water with one rinse. Please visit
our website for details.

Reduction of Usage

Reuse

Recycle Wastes

Make containers
and packages
more compact

Increase refill
products

Proactively use
recycled materials

Promotion of Environmental Communication
through Products
In order to inform consumers of the importance of environmental considerations through products, Lion has been
attaching an "environmental label" on which an "environmental logo" and environmental explanation are printed to
products that fulfill "Lion eco-standard" since 2014.
Every Day. For the Earth. (Introduction of eco-friendly products)(Japanese)
URL http://www.lion.co.jp/ja/csr/ecolion/

P l a s t i c w a s t e s c a n b e re d u c e d b y
approximately 83% by using "TOP NANOX"
refill. (compared with container, by weight)"TOP NANOX" and its refill (super-concentrated liquid laundry detergent)Approximately 70% of the content(organic ingredient) consists of plantmaterial. Please visit our website for details.
"TOP Platinum Clear" (powder laundry detergent)

Promoting Information Security
Efforts for protecting personal information and preventing information leaks
In order to thoroughly protect personal information and ensure information security, Lion has established the "Personal Information Management Regulations" which are in conformance with the "Act on the Protection of Personal Information,"the "Basic Policy of Our Information Management," the "Information Management Regulations," and the "Information Security Regulations." In addition, we have in place the "Lion Group Social Media Policy" and basic guidelines to be observed
to make sure that we can disseminate appropriate information regarding our employees' use of social media (social network
service, blogs, etc.).
Lion Group Social Media Policy (Japanese)
URL http://www.lion.co.jp/smp.htm

Introduction of websites
In collaboration with our customers (Consumer Issues)(Japanese) http://www.lion.co.jp/ja/csr/consumer/

44

CSR Report 2015

Community Involvement andDevelopment

Lion's CSR

Co-existing and Co-prospering with Society andCommunities/ Contributing to the Development ofSociety in the Areas of Health, Comfort and the Environment

Organizational Governance

Basic Approach

Human Rights

Championing the spirit of our founder Tomijiro Kobayashi, which is to "contribute to society through business activities,"
Lion engages in activities that contribute to the creation of a healthy and comfortable society and environment with the aimof being useful for today creating future value for everyone. As it is necessary to co-exist with the locations of business facilities and other related communities in order to continue our business, Lion works to solve regional and social issues in cooperation with local residents, government, and citizens' groups.
In addition, by increasing opportunities for each employee to participate in business-related social and environmental contribution activities, we foster human resources that create new values on the basis of a high level of social and environmental awareness.

Lion's Social and Environmental Contribution Activities
Health and Comfort Field
Kidzania

Oral Health Eventof Tooth Brushing for Children

Educational activities
for preventive dentistry

Educational activities Educational activities for hand washing and gargling (“KireiKirei- Sakaide” Project and Educational activities at kindergartensfor hygienic practices City
and/preschools in Ishinomaki City and near business sites)

Water Resource Conservation Activities

Labor Practices

LDH dental health activities

Forest maintenance activities(In Yamanashi and Odawara)
Educational activities for rainwater
utilization(Rainwater Utilization Ideas Contest,
Japan Water Prize, and Japan Society on
Water Environment)

The Environment

Activities by Meisters of Daily Life

Educational activities
for oral health

Environmental Field

Our Priorities
Co-existence with communities

Involvement of employees

Along with our provision of products that help build healthy
and comfortable living habits, we promote educational activities for oral health and sanitary practices.
Our major activities in this field are as follows: Educational activities for preventive dentistry in which both "professional care" at dental clinics, etc. and daily "self-check" arecontinuously conducted; Oral Health Event of Tooth Brushing for Children intended for elementary school students;
Supporting dental health activities for mothers and children,
school children, and the elderly, which are promoted by the
Lion Foundation for Dental Health (LDH); and Education
activities for hand washing and gargling which are implemented mainly by Lion's employees.

As the company's business is based on its deep relationshipwith water, we put emphasis on "water resource conservation activities," such as forest maintenance activities at
Yamanashi Prefecture and Odawara City and educating society on environmental awareness through initiatives to use
rainwater.

2014 Highlight 1 "Promoting Educational Activities for Preventive
Dentistry" Related information p17 to 21

Harmonizing with Nature (Japanese)

2014 Highlight 2 "KireiKirei City - Sakaide" Project (Hand-washingeducation activities) Related information p22 to 23

Lion's Initiatives to Support the Reconstruction Work after theGreat East Japan Earthquake (Japanese)
URL http://www.lion.co.jp/ja/csr/reconstruction/

URL http://www.lion.co.jp/ja/csr/env/biodiversity/

CSR Report 2015

Community Involvement andDevelopment

Environment

Consumer Issues

Health and Comfort

Fair Operating Practices

Kidzania, Lion Award (Japanese) URL http://www.lion.co.jp/ja/csr/community/oral/
Supports for water resource conservation, water environment researches, and civil activities (Japanese)
URL http://www.lion.co.jp/ja/csr/community/conservation/

45

Community Involvement andDevelopment

Enhancing Social Contribution Programs to Create Healthy and Comfortable Living Habits
Educational Activities for Oral Health via Foundation
Lion has been consistently promoting awareness and education activities regarding oral health since 1913 as mandated
by our philosophy of "returning profit obtained throughcorporate activities to the society," which has never changed
since the foundation of the company. In 1964, Lion established a foundation called the Lion Foundation for Dental
Health (LDH), which was approved by the Ministry of Healthand Welfare of Japan (as it was referred to at the time). In
2010, the Cabinet Office approved the change in the foundation's status to a public interest incorporated foundation,and LDH commenced operations. Through the three publicbenefit services shown below, LDH has consistently been coordinating with the Japan Dental Association, universities,
and administrations to keep and promote teeth and oral
health of consumers, and is contributing to society at theforefront of oral health to improve the quality of life of all
people. Lion gives full support to its activities.

Three Public Benefit Services of LDH
1. Oral health promotion projects
Promotion activities of oral health at all life stages
2. Research and investigative project
Investigation/research into the importance of oral
health in prolonging health span, and provision of information on research results obtained through business and other activities to specialists and consumers
3. Educational and training projects
Holding of various seminars and lectures for healthinstructors and dental specialists
The Lion Foundation for Dental Health, a public interest incorporated foundation
URL http://www.lion-dent-health.or.jp/english/

Main Social Contribution Activities of
LDH in 2014
Activities for oral health promotion for mothers andchildrenChildcare support programs in the areaof "dental and oral health" for expectant mothers, infants, preschoolers, andtheir parents
Program: 159 venues, 161 times
Participants: 5,325 infants and preschoolers and 2,171 parents
in total About 1,130,000 participantsElementary school in Thailand thatparticipated in an Oral Health Event of Tooth Brushing for Children

Oral Health Event of Tooth Brushing forChildren
The Oral Health Event of Tooth Brushing for Children, started in 1932, is held every year for elementary school children
during a week in June (June 4th to 10th), which is designated as the "week of dental/oral health."
In 2014, total of approximately 66,100 students of 1,162
primary schools from across Japan and eight countries/
regions in Asia participated in the 71st event and learned
together about "healthy gums" in a very pleasant environment through real-time distribution of images from the hallof the Tokyo Dental Association.

in total About 920,000 participants

Activities for oral health promotion for adults (industry)
Education focused on prevention of a periodontal
disease and instructions focused on maintenance/
improvement of teeth and oral health provided to
employees of various companies
Sites: 323 venues, 568 times
Diagnosed: 33,184 people
in total About 2,010,000 participants

Activities for oral health promotion for the elderly (From 2007)
Provision of supports to help maintain oral functions
to enable eating with one's own teeth and mouthover a long time in the future
Program: 38 venues, 45 times
Participants: 1,009
in total About 9,000 participants

Activities for oral health promotion for school children
Face-to-face educational activities
with students and their parents andprovision of support in activities run byhealth teachers
Program: 375 venues, 458 times
Participants: 30,286 students,
917 parents, and 602 health teachers

Treatment activities
Implementation of highly-professional and quality
treatment and preventive dentistry activities based on
the concept of risk control dentistry
Diagnosed: 11,876 people
in total About 1,810,000 participantsin total About 23,230,000 participants

The total numbers are integrated values since establishment of the LDH (1964).
Risk Control Dentistry: Customized dental treatment in which care methods are changed according to the risks of tooth decay or periodontal disease of individuals
46

CSR Report 2015

Lion's CSR

Educational Activities for Hygienic Practices

Organizational Governance

Lion has worked on activities to have proper hand-washingpractices take root mainly with the "KireiKirei" brand, aiming
at maintaining the healthy and comfortable lifestyles of consumers.
Major areas where the activities are conducted are locationsof business facilities all over Japan, Ishinomaki City, which is anearthquake disaster area and closely connected to our founder,
and Sakaide City, where "KireiKirei" hand soaps are manufactured. Our employees work together to conduct the educational activities for hand washing at kindergartens and preschools,
restaurants, public facilities, and elsewhere. We will contributeto establishment of clean and sanitary practices.
"KireiKirei City - Sakaide" Project"Arautan" hand-washing workout

Related information p22 to 23

Human Rights

Water Resource Conservation Activities

Through "washing," we have always been deeply involved with water. Lion is actively involved in forest maintenanceactivities and in the promotion of and education on the usage of rainwater, which is a familiar water resource, as partof our water resource conservation activities.

Forest Maintenance Activities atthe Lion Forest in Yamanashi

Rainwater Utilization Ideas Contest
2014

Lion Rain's Gift Forum (Activities report on promoting
rainwater utilization) (Japanese)
URL http://www.lion.co.jp/ja/csr/social/rain/

URL http://www.lion.co.jp/ja/csr/social/forest/

Fair Operating Practices

Lion Forest in Yamanashi (Japanese)

The Environment

The "Rainwater Utilization Ideas Contest" has been held
since 2011 with the aim of having elementary and middle school students across the country realize the importance of water by thinking about ways to use rainwater.
In addition to honoring individuals for their achievements, a rainwater tank is awarded as a school incentive
prize to one elementary school and one middle schoolthat submitted many outstanding pieces.
Total sum of entries
in total 24,442 entries

Labor Practices

Since 2006, Lion has engaged in improving the forest,
which is a water source, at the Lion Forest in Yamanashi
for the purpose of increasing employees' environmental
awareness.
In 2014, a total of 168 employees participated in a new
employee training and voluntary forest improvement activities (which took place three times).
Number of employees who participated in the activities
in total 908 employees

Factory Tours
We regard a factory tour as an important contact between customers and Lion. In order to have customers feel familiar with Lion's products and see our operations putting first priority on safety and environmental conservation,
we welcome a number of visitors to the factories every year.
Chiba

OdawaraOsaka

Akashi

Total

Number ofstudy tours

94

138

54

82

368

Study tour
participants

1,985

3,931

1,534

2,533

9,983

Consumer Issues

Plants

Details of
Factory
Tours in2014

Community Involvement andDevelopment

Introduction of websites
Together with Community (Community Involvement and Development) (Japanese) http://www.lion.co.jp/ja/csr/community/
Lion's Initiatives to Support the Reconstruction Work after the Great East Japan Earthquake (Japanese) http://www.lion.co.jp/ja/csr/reconstruction/

CSR Report 201547

Third-Party Review

Our life is sustained by various items of daily use.
The Lion Group as a cleansing agent provider has been
taking a significant role in public cleanliness and contributing to establishment of oral hygiene, which have been now
ordinary habit among people in Japan.
I can see their commitment to further achievement intheir business as "a company that creates value for lifestyleand spiritual fulfillment."
As mentioned in the Message from the Management, "Lionconsiders it necessary to be aware of social changes, as wellas accompanying changes in people's values." It means theirbusiness needs to unfold itself with consideration of how
they respond to various issues the company is facing fromtime to time in global sense, even in the circumstance that
global-scale environmental and social issues remain unresolved.
In this situation, the company presents various activities andtheir paths to development of a healthy and comfortablesociety on each and every page of the report, following
their corporate slogan of "Life. Love." and Lion's founding
spirit of "working for the benefit of people and society."
Starting from origin of Lion's social contribution activities
such as products with charity coupons, the company has
developed new services in response to changes in the times.
The ever-expanding CSR issues are comprehensively covered
in reference to ISO26000, GRI, and so forth, and efforts undertaken in each stage of the value chain are also describedin comprehensive manner. Hence, the CSR Report 2015 wasclearly prepared with reader-friendliness in mind.
Highlight is the 2017 medium-term objectives being set toward "Vision 2020." The company increased their engagement in CSR activities, and it can be seen from the increased
number of items in the next medium-term objectives related
to its core business, in addition to the achievements of the2014 CSR medium-term objectives.
Targets which had already been achieved by 2014 were
evaluated highly. Furthermore, with the next medium-term
objectives set, the company has just started taking on thechallenge of meeting additional objectives set in each core
subject, and also promoting corporate governance related
to overseas information.
While continuous activities such as reduction in greenhousegas emissions have been developed in Japan, items related
to overseas issues may have potential environmental andsocial risks that are unrealistic in Japan, under the different

laws and customs, etc.
I highly evaluate Lion's self-checks in CSR procurement
which are performed in consideration of biodiversity, yet I
expect reports based on quantitative analyses with strengthen on-site validation, and quality objectives in details.
In Human Rights and Labor Practices, the group-wide initiatives and institutions are being promoted.
While details are available on the related websites, theinclusion of effects from the achievements and voices of employees may make it clearer to understand to what extent
the initiatives and the institutions have taken root.
Numerical values related to rates of female managers,
paid leave used, and childcare-related measures have increased gradually. I suggest that solid goals be set to improve work-life balance, and then the initiatives will be
more substantive by reflecting measures towards thosegoals accordingly.
In Consumer Issues, many initiatives, which are close to
consumers, have been introduced. These initiatives include
for example enhancement of systems to produce safe andhigh-quality products across all functions of Lion including
consolidation of the pharmaceuticals division and the quality assurance division, information provision by Meisters ofDaily Life via Lidea, active participation in communities, andpromotion of preventive dentistry, as seen in the 2014 Highlights.
As their activities are not transient, but reflect a viewpoint of "total oral health care" corresponding to each life
stage, Lion's willingness to achieve "Life. Love." for all people can be felt.
In order to "create value for lifestyle and spiritual fulfillment
long into the future by consistently safeguarding health,comfort, and the environment for people each and everyday" in cooperation with people living on the invaluable
earth together, it is necessary for nature, animals and plants,
human society, and all lives to continue to be healthy. If not,it would be difficult to maintain a promising future.
Lion has provided wonderful activities and products that
support communities and people's precious daily lives all thetime.
I expect Lion to promote further activities toward realization of healthy and comfortable lifestyles and spread theidea of "fulfilling the spirit of love," while contributing to
the creation and development of a sustainable society under a new sense of value.
Environmental Expert, Ethical Life Advisor

Manami Yamaguchi
Representative Director of FEM Co., Ltd
Chairperson of Environmental BusinessResearch Institute
Director of Research Network for the Future of Woman and Agriculture48

CSR Report 2015

From Lion

In line with its Vision 2020, Lion aims to become "a company that creates values for lifestyle and spiritual fulfillment,""a company that is advanced in the area of environmental
responsiveness," and "a company that continues to take onchallenges, create, and learn."
Recognizing that CSR needs to be an integral part of thecompany's management structure so that Lion can remain acompany that is trusted by society, we are proceeding with
our PDCA activities based on the medium-term objectives inrelation to CSR issues that are critical for us.
We had attained almost all of the 2014 medium-term
objectives, which led to us being evaluated favorably in the
Third-Party Review. In addition, we set the group-wide medium-term objectives for 2017 including those for overseas
group companies. We will push ahead with our initiatives byrunning the PDCA cycle.
As there may be potential environmental and social risks inforeign countries, which are considered unrealistic in Japan,
it was pointed out that we should enhance our checking
functions, improve the accuracy of our objectives, and provide reports based on quantitative analysis. Hereafter, withthe aim of achieving the medium-term objectives for 2017,
we will conduct CSR activities by establishing systems tounderstand each group company's situation as regards CSR
activities on a regular basis and determining priorities inconsideration of differences in laws, cultures, and customs
in respective countries and regions.
It has been suggested that we should indicate their degreeof penetration of initiatives concerning human rights andlabor practices by showing the effects of the achievements

and employees' voices, and set the directionality and objectives to reinforce adoption of female managers, use of paid
leaves, and childcare-related measures, etc.
Lion is working to improve the working environment toallow our diverse human resources to work actively.
We will consider measures to resolve problems that discourage women, people engaged in nursing care, people
with disability, and others from being active, and proceedwith the introduction of flexible working styles.
We will also make efforts to externally inform the extent
to which the measures have taken root in an easy-to-understand manner such as placing the relevant results and opinions of employees in the CSR reports and on the website.
Activities on matters familiar to consumers were also favorably evaluated, for example, promotion of preventive dentistry, development of safe and high-quality products, information provision by the Meisters of Daily Life, and activities
for communities. Toward a valuable future for each person,
we will continue to conduct activities to protect healthy andcomfortable lifestyles. We will also make efforts to improve
the quality of the CSR reports through communication withstakeholders, and fulfill responsibilities according to theneeds of the times.

Managing Director
Director in charge of CSR

Takayasu Kasamatsu

Editorial Note
Highlights of CSR activities in 2014 were featured
by educational activities for preventive dentistry
and the "KireiKirei City – Sakaide" Project.
Lion, a top maker of oral care products, has asocial responsibility to inform society about theidea of "preventive dentistry" in which both professional care and self-care are conducted on acontinuous basis.
In addition, as one of educational activities forhand washing and gargling with which we arepushing ahead, a project was launched in cooperation with Sakaide City, Kagawa Prefecture,
where a production base of "KireiKirei" handsoaps is located.
We hope that you will develop a deeper understanding of Lion through information on our CSR
website and "Lidea," a website for lifestyle information.

当社はグローバルな
社会的責任投資指標である
FTSE4Good Global
Indexに選定されています。

CSR Report 201549

Lion Corporation P u b l i s h e d o n September 30, 2015 To be published next on September, 2016
CSR Promotion Department, Lion Corporation 3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan
Website (Japanese): http://www.lion.co.jp/
Tel: 03-3621-6611
Fax: 03-3621-6299
Website (English) : http://www.lion.co.jp/en/ Tel: +81-3-3621-6611 Fax: +81-3-3621-6299

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