CSR Report

2012Love today,Love your life.

Editorial Policy

CSR Communication Tools

Lion views its CSR Report as an important tool
allowing the Company to communicate its CSR
initiatives and draw on stakeholder opinions
while furthering corporate activities.
The CSR Report 2012 was prepared taking into
account the following points.
・ Since 2011, CSR activities have been systematizedin accordance with ISO26000, an international
standard concerning social responsibility. The CSR
Report is also complied following the trend.
・Third-party reviews by outside experts have been
included to provide an objective assessment.

Reference guidelines

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

Coverage
Lion Group

Lion Corporation, Lion Chemical Co., Ltd.,
Lion Packaging Co., Ltd., Lion Engineering Co., Ltd.,
Lion Dental Products Co., Ltd., Lion Trading Co., Ltd.,
Lion Hygiene Co., Ltd., Lion Business Service Co., Ltd.,
Lion Field Marketing Co., Ltd., Lion Logistics Service Co., Ltd.,
Lion Cordial Support Co., Ltd., Issua Co., Ltd.,
Ipposha Oil Industries Co., Ltd., Lion Akzo Co., Ltd.

CSR Report
The purpose of the CSR Report is to communicate
what corporate social responsibility (CSR) means toLion and to outline Lion’s CSR activities. It provides an
overview of the Lion’s approach to CSR and describes
activities carried out during 2010. Contents coveredin greater detail on the Company website are marked
with URL .

Period Covered
January 1 to December 31, 2011
(In places, activity reports refer to 2012 initiatives.)

Website (CSR Section)
The aim of the CSR section of Lion’s website is toensure timely and appropriate disclosure of information
required by customers, experts and all otherstakeholders. As well as providing more detail than thebooklet, the website is also designed for greater visualappeal.
URL http://www.lion.co.jp/ja/csr/ (Japanese only)

CONTENTS
Contents…………………………………………… 01
Corporate Data… ……………………………… 02
Message from the Management…………… 04

Special Features: Lion’s responses to
the Great East Japan Earthquake ………… 06

Lion and CSR… ……………… 08
Basic Approach / Lion’s CSR Objectives and Major Activities
in 2011 / Foundation for Business / Management Vision /Business activities / Overview of Lion’s CSR Activities /Response to ISO26000

Organizational Governance…… 16
Basic Approach / Corporate Governance System / Risk
Management / Establishment of Internal Control Systems /Enhancement of Information Disclosure

Human Rights…………………18
Basic Approach / Frameworks to Ensure Respect for Human
Rights / Contact for Consultation and Internal Reporting

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

Labor Practices… ……………19
Basic Approach / Human Resource Diversity / Promoting
Work-Life Balance / Safety and Disaster Prevention Initiatives/ Human Resource Development / Employee HealthManagement

The Environment………………24
Basic Approach / Environmental Guidelines / Environmental
Management Structure / Environmental Management
System / Legal Compliance / Environmental Targets andAchievements / Environmental Accounting / EcoEfficiency / Overview of Environmental Impact of Lion’s
Business Activities / Environmental Communication /Prevention of Pollution / Sustainable Resource Use / Climate
Change Mitigation and Adaptation / Biodiversity Conservation

Fair Operating Practices……… 34
Basic Approach / Promoting Compliance / Initiatives for
Value Chains / Respect for Intellectual Property Right

Consumer Issues…… … …

Lion 120 Eco Stories
We compiled our environmental activities and useful
information for our customers into a booklet.

36

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

Community Involvement and…… 42
Development
Basic Approach / Activities of Lion Foundation for Dental
Health / Protection of Water Resources / Major Social
Contribution Activities (2011)

Third-Party Review… ……………………………
Editorial Note………………………………………

46
47

CSR Report 2012 01

Corporate Data

● Financial Indicators

Corporate Name

Lion Corporation

Net Sales

Address

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

October 30, 1891

(million yen)
400,000
350,000¥34,433.72 million (as of December 31, 2011)

President

Itsuo Hama (as of January 1, 2012)

250,000

Employees

Consolidated: 5,973
Non-consolidated: 2,439 (as of December 31, 2011)

200,000

Net Sales

Consolidated: ¥327,500 million
Non-consolidated: ¥253,100 million (for theterm ended December 2011)
Chiba Plant (Ichihara City), Odawara Plant(Odawara City), Osaka Plant (Sakai City),
Akashi Plant (Akashi City)

Research
Facilities

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

Sales Offices

Sapporo, Sendai, Tokyo, Nagoya, Osaka, Fukuoka

338,236

2007

2008

331,100

327,500

2009

2010

2011 (year)

150,000
100,000
50,0000Operating Income(million yen)
12,00010,00010,036
8,905

8,000

● Net Sales Breakdown by Business

321,947

300,000

CapitalPlants341,717

10,50011,169

8,277

6,000

Consumer Products Business¥262.38 billion

Oral Care Products¥50.83 billion

Beauty Care Products¥22.80 billion

2,000Pharmaceutical Products¥38.44 billion

0

Fabric Care Products¥79.57 billion

Living Care Products¥23.19 billion

Other Business¥47.51 billion(million yen)
14,000Industrial Products Business¥52.41 billion

12,000Overseas Business¥53.75 billion

10,000

Others¥26.38 billion

Adjustment ※▲ ¥67.43 billion

Consolidated Net Sales¥327.50 billion※ Intra-segment and inter-segment sales

4,000

2007

2008

2009

2010

2011 (year)

Ordinary Income

11,145

11,795

12,183

10,104
7,603

8,000
6,000
4,000
2,000

● Location of Overseas Group Companies

0

2007

2008

2009

2010

2011 (year)

Net Income
South Korea(million yen)
7,000

CJ Lion Corporation

China
Thailand
Lion
Corporation(Thailand) Ltd.

Malaysia
Southern
Lion Sdn. Bhd.

Malaysia
Lion Eco
Chemicals Sdn. Bhd.

Indonesia
P.T. Lion Wings

02 CSR Report 2012

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

TaiwanLion Chemical Industry (Taiwan) Co., Ltd.

6,000

6,041

5,000

4,077

4,000

Hong Kong
Lion Corporation (Hong Kong) Ltd.

Singapore
Lion Corporation (Singapore) Pte. Ltd.

5,465

5,423

3,040

3,000
2,000
1,000
0

2007

2008

2009

2010

2011 (year)Pharmaceutical Products
Fabric Care Products
Chemical Products

Industrial Products BusinessSpecial Sales

Living Care Products

Consumer Products Business

Beauty Care Products

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

Main Product Categories
Toothpastes, toothbrushes,
mouthwashes, and otherdental products

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

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

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

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

Products useful for clean and comfortable living and dining

Main Product Categories
Dishwashing detergents,
household cleaners, andcooking aids

Custom products tailored to meet individual needs

Main Product Categories
Novelty items, gift items,
and mail order items

Performance chemicals based on interface science for a safe, sound and clean global environment

Main Product Categories
Surfactants, fatty acid nitrogen
derivatives, glycerin, fatty acidmethyl ester, andelectro-conductive carbon

Surfactants

Detergents for precision parts and cleaning
items therefor

Conductive carbon and application
products

CSR Report 2012 03

Message from the Management

Be a Company that Creates Value for Lifestyle

Sadayoshi Fujishige
Representative Director
and Chairman

Looking back on 2011as a specialist for information on everyday life, we haveFirst of all, I offer prayers for the deceased and extend mycreated, accumulated and relayed information.

heartfelt condolences to all victims of the Great East Japan
Earthquake. I also wish for the earliest restoration of the

As for environmental initiatives, Lion has set goals to

disaster-hit areas. Lion has provided ongoing human-to-

reduce CO2 emissions through business activities by 30%

human support following the emergency aid provided

in 2012, and by 40% in 2020 compared with the level

immediately after the disaster. As part of the “Makeof 1990, as a countermeasure against global warming. In

Tohoku Well and Active Again” support project, we have

2011, we achieved a 35% reduction in CO2 emissions byconducted activities such as lectures by dental hygienists toimproving production efficiency of detergents for clothing

give advice on oral care at kindergartens and elementaryand promoting activities for the “Challenge 25 Campaign”,

schools, and educational activities by employees to make aa national movement for the prevention of global

habit of washing hands at temporary childcare centers. In

warming. In addition, our goals for 2012 were alreadyhope of the reconstruction of the devastated areas as early

achieved. As a maker of daily consumer products andas possible, and good health of the affected people, we ataiming to be an environmentally advanced company,

Lion will continue to implement our unique initiatives.

Lion will make efforts for reducing CO2 emitted throughhousehold use of the products.

Striving to create higher value to markets by launchingproducts to lead healthy and comfortable lives, such

Making a greater leap with
New Management Vision

as oral care products to prevent periodontal diseases,

In 2011, thanks to your support, Lion commemorated thefunctional foods to promote the health of middle-aged

120th anniversary of the start-up of its operations. Sinceand elderly people, as well as a new type of toilet cleaner

its foundation, Lion has been committed to management

which offers a new way of cleaning. In addition, in orderconscious about contribution to society, under theto relay innovative information, we newly established thecompany motto of “Fulfilling a Spirit of Love”.

new innovative products in 2011, Lion provided useful“Lion Comfortable Lifestyle Laboratories” which provides
information suitable to individual lifestyles and is usefulMarking the 120th anniversary of the start-up of its

during major life transitions with an eye to realizing

operations, Lion formulated a new management vision

comfortable life. Appointing a “Meisters of Dairy Life”

entitled “Vision 2020” with the aims of: 1) being a

04 CSR Report 2012

and Spiritual Fulfillment

Itsuo Hama
Representative Director
and President

company that creates value for lifestyle and spiritual

management, we established a new system to enhancefulfillment; 2) being a company that is advanced in thecorporate governance in which the chairperson serves asarea of environmental responsiveness; and 3) being a

Chief Executive Officer and the president serves as Chiefcompany that continues to take on challenges, create andOperating Officer. Under this new system, in addition tolearn. Furthermore, for furthering the new managementbusiness activities and corporate branding campaigns, we

vision, a new company slogan of “life. love. Lion” waswill continue to consider CSR activities to be important as

set. It expresses our determination to make contributions

one of three pillars to realize the new management vision.

to people’s “todays” which can be made only by Lion, aIn order to continue to be a company which iscompany which has continued to look after people’s lives

trusted by society, Lion has enhanced CSR activities infor 120 years.

accordance with the “ISO26000” international standards

The ideal corporate image drawn by this new

for social responsibility issued in 2010. By listening tomanagement vision is a company that creates value

our stakeholders, we accurately comprehend changes

for lifestyle and spiritual fulfillment long into the future

in people’s sense of value as well as the expected social

by consistently safeguarding health, comfort and theroles of the companies. Then, we work on the following

environment for people each and every day. “Value

activities: Product development putting first priority on

for lifestyle” means improving quality of life to becustomer’s satisfaction; provision of services centering on

comfortable, and “value for spiritual fulfillment” means

activities for diffusion and enlightenment; utilization ofleading a forward-looking life with a sense of fulfillment

diverse human resources; creation of safe and comfortable

and a rich spirit. The new management vision implies thatworkplaces; promotion of environmental conservationa happy life at the present moment and in the future can’t

activities; facilitating fair trade; and contribution to local

be created without achieving the both values. Firmly

societies. Lion’s social responsibility is to be of help todetermining to continue to be a company that helps

society and contribute to people’s happy daily life throughpeople’s lives, Lion will aim at making a greater leap.

our business activities.
In 2009, Lion declared its support for “the United

Toward CSR management

Nations Global Compact”, an international framework to

In 2012, we started taking on challenges toward theachieve sustainable growth. Continuously supporting thisrealization of a future vision. Marking this milestone,

Compact, Lion will make further efforts to conduct CSR

in order to separate functions to supervise and execute

management.

CSR Report 2012 05

Special
Features

Lion’s Responses to theGreat East Japan Earthquake

When the Great East Japan Earthquake struck in March 2011, no human suffering was reported amongst
our people throughout our Company including affiliates, but some offices and plants were damaged. The
report on measures for recovery soon after the disaster and our support activities are shown below:

Damages on the Lion GroupWe confirmed by the following day of the disasterbeen reinforced against earthquakes suffered no majorthat none of our employees and their family members,

damage such as collapse. However, some products were

including those of affiliated companies suffered any

broken due to collapsing of cargo in warehouses andcasualties.

some plant facilities were partly damaged.

The Company’s office buildings and plants which had

Measures for Recovery Immediately after the Earthquake
A disaster management task force headed by the president was set up
at Lion’s Tokyo headquarters in line with the Company’s Earthquake
Response Manual. After initially working to confirm employee safety andconditions at affected facilities, the task force set about formulating andimplementing recovery plans for affected plants, as well as executing a
pre-determined business continuity plan (BCP) including quick recovery
of ordering/production system and securement of materials to ensure
delivery of products as quick as possible.

Disaster management task force

Reducing Power Consumption by 28% Year-on-Year in “Eco First Summer 2011”
As a designated “Eco First Company*, ” Lion issued its

Tokyo Electric Power (TEPCO) and Tohoku Electric Power“Promises Regarding Eco First Summer 2011 Power

companies by 15% or more. As the result of various efforts

Conservation” aiming to cut its peak power consumption

made, Lion achieved a 28% reduction, exceeding thefrom July through September in the service areas oftarget.

Primary measures
Working on a staggered shift basis
Setting all air-conditioning system thermometers at
28℃, and wearing “cool biz” clothing
Reducing power consumption for lighting, forexample, by switching to LED lights
Setting days or weeks with no overtime work
Ensuring electricity with in-house power generation* Companies that have outstanding records in environmental
responsiveness are designated as “Eco First” companies by Japan’s
Ministry of the Environment.

06 CSR Report 2012

Declaring the promise of power conservation to Mr. Matsumoto, theformer Minister of the Environment (left of center in the front row)

Support Activities in the Devastated Areas
Following the Great East Japan Earthquake, the Lion Group

Activities with lectures by dental hygienists of LDH (theprovided a total of the equivalent to ¥350 million in relief

Lion Foundation for Dental Health) at kindergartens anddonations as well as our products including toothpaste,elementary schools; the “Chase Away Germs! Rally” held

laundry detergents and other items to those affected byat 100 kindergartens; and participation in the “Nationwide

the disaster. Moreover, the Lion group has supported its

Visiting Team to Encourage Enjoyment of Books” Campaign in

employees to participate in activities of the One % Club of the

co-operation with Kodansha Ltd.

Japan Keidanren, as well as Global Compact Japan Network

From 2012, the Lion Group has conducted support activities–sponsored volunteer assistance programmes in the affected

for Ishinomaki City in Miyagi Prefecture, an area which isareas.

closely tied with Tomijiro Kobayashi, the founder of Lion.

In addition, as part of the “Make Tohoku Well and Active

Wishing for the earliest reconstruction of the devastated areas

Again” support project, the Lion Group conducted theand good health of the affected people, the Lion Group will

following activities in the disaster-hit areas: the Dental Healthcontinue to conduct support activities to be of help to people.

Dental Health Activities by LDH

The “Nationwide Visiting Team to Encourage Enjoyment of Books”
Campaign

The “Chase Away Germs! Rally”

Presented planters made of timbers from forest thinning at the“Lion Forest in Yamanashi” to residents at a temporary housing

Education activities to make a habit of washing hands held at
temporary childcare centers

CSR Report 2012 07

Lion and CSR

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

Sustainablecorporate and social
development
Foundation
for businessWith the aim of sustainable corporate
and social development, Lion determines
its CSR targets every year and conducts
relevant activities, always responding
to requests from society throughdialogue with its stakeholders.

Business
activities
Management
visionFor more details, see p.11 to 13● Company Motto/Management Philosophy● Management Vision and Plan

The Company Motto and Management Philosophy are determined by inheriting theCompany’s founding spirit, as well as the Lion Group Charter for Corporate Behavior
and Behavioral Guidelines, which were formulated to achieve the concept of themotto and management philosophy. Each of Lion’s employees behaves and conducts
CSR activities in accordance with all of these concepts.

We promote business activities
following the new management visionand corporate message determinedas our corporate direction for the
next decade.

For more details, see p.9

For more details, see p.10

Lion’s CSR Objectives and Major Activities in 2011
Until 2011, CSR activities had been conducted with
objectives set for each category of stakeholders. In this CSR

Report 2012, items of objectives in 2011 were reorganized
and reported in conformity to core subjects of ISO26000.

Process to set 2011 objectives and Summary of major activities
Core subjects
Organizational
governance

Human rights/
Labor practices

Objectives
・Enhancing
governance systems

Major activities

・Established new management system in which functions ofsupervising and executing operations are separated.

・Reconsidering the business continuity ・In addition to the annual review of our BCP, we moreover reviewed it in response to theplan (added during the fiscal year)
occurrence of the Great East Japan Earthquake in March 2011
・Establishing good working
environments

・Certified in the Next Generation Support Act Phase 3 Action Plan, and formulated the Phase 4 Action Plan
Introduced a preferential treatment system for transferred employees
Introduced a telecommuting system

・Using diverse humanresources

・Introduced a new system with achievements of the subcommittee of Diverse Human
Resource Promotion Committee

The environment

See p.26

Fair operating practices

・Promoting CSR procurement ・Decided to introduce certified palm oil

Consumer issues

・Reinforcing interactive communication ・Started to provide toll-free consulting service
・Enhancing eco-friendly products ・Increased the rate of products meeting Lion’s Eco Standard (66% of all items, 82% of net sales)

・Promoting dental health ・Increased number of schools participating online in Mass Tooth Brushing Exercise for School
activities
Children (22,000 participants from 315 schools in four countries: 220% increase year-on-year)
Community
Involvement and・Implemented the “2011 Competition of Ideas for Using Rainwater” for junior high and・Promoting water resource
Development
elementary schools to facilitate the use of rainwater
conservation activities
・Donated rainwater storage tanks to public kindergartens and elementary schools in Osaka

08 CSR Report 2012

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

Management Philosophy

1

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

2

We respect the “Spirit of Tenacity and Creativity” that we have maintained since ourfounding, as we continue developing our business.

3

We deeply appreciate all those who extend their valuable support to us, as we prosper
together through sincerity and mutual trust.

Lion Group Charter for Corporate Behavior(Established on January 1, 2003 Revised on January 1, 2008)
We, Lion Group, shall, in addition to being economic entities designated to pursue profits through fair competition, keep ourselves associal entity which must make a contribution to society at large. We shall respect human rights and conduct ourselves with initiative in asocially responsible manner toward the creation of a sustainable society, observing both the spirit as well as the letter of all the laws andinternational rules without harming the public interests both in Japan and abroad in accordance with the following 10 principles.

1. Principal Mission

6. Contribution to the society

3. Disclosure

8. Contribution in Foreign Countries

2. Compliance with Public Rules
4. Environmental Issues

5. Promotion of Working Environment

7. Confront Antisocial Activities
9. Practice of Corporate Ethics

10. Resolution of Problems

CSR Report 2012 09

Management Vision
Marking the 120th anniversary of the commencementof Lion’s business activities in 2011, we formulated a
new management vision toward 2020 and a Mediumterm Management Plan entitled “V-1 Plan” to realize

the vision, with an eye to continue being a company
which contributes to peoples’ happiness andimprovement in their lives by responding to socialchanges.

New Management Vision, Vision 2020
To realize three visions, we implement four strategies. However,to promote these strategies, the following three innovations arenecessary:1) Life Innovation, in order to enlighten people about how
to approach different stages of life and achieve comfortable
lifestyles, by helping them today to the fullest to arrive at afulfilling tomorrow;2) Green Innovation, in order to develop innovative technologies
toward the “realization of sustainable society”; and
3) Knowledge Innovation, in order to switch to a corporate
culture in which people can learn through challenges andexperiences.

Vision 2020

The Ideal Lion Corporation in Fiscal 2020
[Management Vision] (Three
Difining Characteristics)
Be a company that creates value for lifestyle and1. spiritual fulfillment

a company that is advanced in the area of
2. Be
environmental responsivenessa company that continues to take on challenges,
3. Be
create and learn

Life Innovation
Create value that contributes topeople’s health, lifestyles
and lives

A company that creates value for lifestyleand spiritual fulfillment long into the
future by consistently safeguarding,health, comfort and the environment forpeople each and every day[Four Strategies] Basic Strategies for the “Vision 2020” Period Green Innovation
Qualitative Growth ofCultivate Leading Brands

Quantitative Expansion of

Establish Business Leadership in Asia

Development ofDevelop Direct &Service Business Models

Enhancement of Organizational

Invigorate in-house Organizations andDevelop Capable Human Resources

1. Domestic Businesses

２. Overseas Businesses
３. New Business Value

4. Learning Capabilities

HealthComfortCreate value that
contributes to the realization ofa sustainable society

Environment[Business Fields][Three Types of Innovations]Innovations that Underpins
Strategy Implementation

Knowledge Innovation
Create capable organizations
that generate new value

Medium-term Management Plan “V-1 Plan”
As an initial action plan toward the achievement of “Vision
2020” covering three years from 2012 to 2014, the Mediumterm Management Plan “V-1 Plan” was formulated. According
to the V-1 Plan with a theme of “Launching initiatives aimed
at achieving the management vision”, we have started
and have accelerated specific measures for four strategies
aiming at steady improvement in profitability. The targets of

10 CSR Report 2012

consolidated business performance in 2014 are as follows:
Net sales at ¥365 billion (average growth rate for three years
at 3.7%); Operating income at ¥20 billion (up ¥8.9 billion
from 2011); Operating margin at 5.5% (up 2.1 points from2011); Ordinary income at ¥21 billion (up ¥8.9 billion from2011); and Net income at ¥11.5 billion (up ¥7.5 billion from2011).

Business activities supporting clean, healthy, comfortable
and sustainable life are the basis of Lion’s corporate social
responsibility. Since its foundation, Lion has long beena culture bearer for oral health and cleanliness, making
proposals for making good habits through provisionof useful products for living, as well as promotion andeducational activities. Celebrating the 120th anniversaryof its founding in 2011, a new corporate message wasformulated. Under the slogan of “life. love. Lion”, wewill conduct business activities for both physical andmental health and comfort, aiming to be a company
which creates a valuable future.

Lion and CSR

Business activities

Oral Hygiene Business
Oral hygiene is Lion’s core area of business. Over the years,
we have developed many dentifrices with new functionsin accordance with changes in people’s living habits
throughout the eras, and have disseminated the correctknowledge about tooth and oral hygiene. For the future,

we will strive to make proposals based on new values,
focusing on relationship between oral hygiene and systemic
illness which has been revealed in recent years. Meanwhile,Completion of thein Asia, we will promote awareness and education of oral
Odawara Plant
health, aiming at No.1 in the oral care business field.
Clinica(for prevention of cavity)

Lion Dental
for Childrenneeds,
Functions added in response
to Clinic
people’sas well as Awareness and Education of oral healthTooth brush and toothpaste
donations to Asian countries

Completionof theDentorOdawara(forPlant
prevention of pyorrhea)
Lion Toothpowder
Charity coupons printed on the backof the packet(the root of Lion’s social
action program)

Founding (1896~)

A supplement picture book that
Lion
Dentalfor (This
Childrencomes
with
the Clinic
product
is theroot of educational activities about
oral health for children)

Growth (1913~)

Clinica(for prevention of cavity)
White & White(Development of laminated tubes)

Expansion (1970~)
Mass Production (1960~)Dentor(for prevention of pyorrhea)

Starting educational activities
Expanding the market, andPromoting oral health/
Lion Toothpowder
tooth brushinghabits
The root of social action toAmake
supplement
picture bookthat developing world-classCharitycoupons printed on the back forcomeswith the product (This is the products
childrenprogramsof the packet(the root of Lion’s social
action program)root of educational activities about
oral health for children)

Growth (1913~)

Mass Production (1960~)

Promoting oral health/The root of social action
programs

Starting educational activities
to make tooth brushing habits
for children

Expanding the market, anddeveloping world-classproducts

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

White & White(Development of laminated tubes)

Founding (1896~)

The Dentor Systema series(for prevention of periodontal disease)
Tooth brush and toothpaste
donations to Asian countries(for prevention of periodontal disease)

Expansion (1970~)

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

Culture of Cleanliness and Environmentally-friendly Business
Through supplying many kinds of detergent, including
laundry detergents and soaps, Lion have helped instill aculture of cleanliness in society from the days when notions
about hygiene were weak until the present day. In productdevelopment, we are currently tackling global environmental
issues including those relating to water, thus we will makefurther efforts for establishing a sustainable society.
KireiKirei
Medicated Liquid Hand soap

Education of cleanliness andmeasures for the global environment

KireiKirei
Medicated Foaming Hand Soap

The ”Beat” brand laundry detergent
sold in Korea
KireiKirei
Medicated Liquid Hand soap
Plant-Derived Lion Laundry Soap
(Japan’s first plant-derived soap)

Dash
Lipon F(earned the top recommendation of
the Japan Food Hygiene Association)

KireiKirei
Medicated Foaming Hand Soap

Spark
The ”Beat” brand laundry detergent
sold in Korea

Lipon(Japan’s first fatty alcohol-based
synthetic detergent)
Plant-Derived Lion Laundry Soap
(Japan’son
firstplant-derivedsoap) procedures
Manualstandard
home laundry
Dash Murin TOP(Education on laundry procedures)
Lipon F(earned the
top recommendationof to Water
Early Notions
HygieneReformResponse
the Japan Food Hygiene Association)

About Hygiene(1891 ~ 1940s)

in Post-war Japan Environment Issues
Lipon(1950s)(1960s ~ 1980s)(Japan’s first fatty alcohol-based

Promoted awarenessContributed tosynthetic detergent)

Early Notions
About Hygiene(1891 ~ 1940s)
Promoted awarenessabout washing withdetergent

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

Response to Petroleum
Resources Issues and Resource
Conservation (1990s)

TOP NANOX

Food Poisoning Cases Raise Water Resources andWater Use Reductions
Needs for Disinfectants
Combating Odors (2010s)(1990s ~ 2000s)

Responded to various
water environment
issuesMurin TOP
parasites with awhich occurred as the use
neutraldetergentsynthetic detergents
HygieneReformfor of
Response
to Waterbothdishes andpopular Issues
in Post-war
Japan became
Environment
vegetables(1950s)(1960s ~ 1980s)

Amid an increase in
Launched medicated Released
Shokubutsu-Monogatari
Educational activities to make“TOPTOP
awarenessofStory)
reducing soaps
NANOX”(PlantNANOX
hand washing a habit
use of fossil resources,
Developed
expanding
educational
Response
to Petroleum
Food Poisoningactivities
Cases Raise Water Resources andplant-derived
products
childrenResources
Issues andResource for
Water Use Reductions
Needs
for Disinfectants

Conservation (1990s)(1990s ~ 2000s)

Combating Odors (2010s)

Contributed toeradication ofparasites with aneutral detergent for

Amid an increase inawareness of reducing
use of fossil resources,
expandingLaunched medicatedsoaps
Developed
educational activities

Released“TOP NANOX”

Manualstandard homelaundry
procedures ofaboutonwashingwitheradication(Education on laundry procedures)

detergent

Spark

Responded to various
water environment issues
which occurred as the useof synthetic detergentsForthefutureEstablishingsustainable society
Contributing to aclean
Forlifestyle in Asia

thefutureEstablishing
CSR
Report 2012 11
sustainable society
Contributing to aclean lifestyle in Asia

Overview of Lion’s CSR Activities
Lion has been committed to achieving the Company’s
founding spirit of working for the benefit of people andsociety through providing various products. We haveconducted activities putting emphasis on stakeholders at
the forefront at each stage, from the frontiers of researchand development to the final product and disposal.

The various activities we have conducted aresummarized as the overview of Lion’s CSR activities, inwhich “Major Activities” and “Primary Opportunities
to Dialogue with Stakeholders” are classified by stages
such as ‘procurement of raw materials’, ‘major initiatives
undertaken by Lion’, ‘use by consumers’ and ‘society &Major initiatives
undertaken by Lion

Procurement of
raw materials

Primary Opportunities
to Dialogue with
Stakeholders

Major Activities

Reviewing business plans
Establishing good working environments
Using diverse human resources
Promoting CSR procurement

Business partners: Observations of
raw material supplier plants→p.35

Employees: Labor-management
meeting →p.19

Enhancing interactive

Business partners: Lion-kai
General Meeting →p.35

Shareholders/Investors: Interaction with directors at ordinary

Promoting Communication with Stakeholders
Lion views dialogue with stakeholders as a valuable
opportunity to contrast corporate direction against
the needs of society, as well as to confirm we have asense of balance as a good corporate citizen. Opinion
exchange takes numerous forms.
Lion will make efforts for reflecting opinions ofstakeholders in its CSR activities.
Materiality Analysis

See the right pageThe dialogue we held with our employees in 2011
was the same as that held with customers in 2010.
Analysing the results of these two identical surveys,
one for our customers and the other for employees,
notable differences between them were not found.
In addition, there were no items of which customers
highly appreciated but employees ranked low.

12 CSR Report 2012

Items that were highly appreciated by both customers
and employees are as follows: “Prevention of
global warming” including the reduction of CO2
emissions through business activities and products;“Enhancing customer support” as a tool of interactive
communication with consumers; and “Dental healthactivities” for various generations. It was also foundthat customers required CSR information through thewebsite easier than through CSR Reports.
The “Mass Tooth Brushing Exercise for SchoolChildren” activity, one of Lion’s historical educational
activities for oral health, has sufficiently penetrated in
employees. Meanwhile, as it seemed that customers
were not as aware of this activity, to aim for further
penetration we will step up our efforts to relay suchinformation through means such as the Internet.

promoting activities for oral health. In each stage,communication with stakeholders is promoted throughopportunities such as shareholders meetings, labormanagement meetings, customer support or plant tours.
We will promote CSR activities in each stage of businessactivities.

Use by consumers

Lion and CSR

environment’.
Major activities include: promoting CSR procurement
in cooperation with business partners; establishinggood working environments and using diverse humanresources; enhancing interactive communication withcustomer support; and, in relation to Society/Environment,

Society/Environment

Promoting activities concerning oral health
Promoting water resource conservation activities
communication
Reducing CO 2 emissions
Expanding environmentally-friendly products

Customers: Customer support→p.38

Local communities: Plant tour→p.45
Environment: Participating in environmental events &Environment-related dialogue with communities→p.29

general meeting of shareholders & Participating in IR events→p.17(management level +representatives of labor
union)

December 4, 2010

Rank Lion’s activities concerning thefollowing three themes.
CSR communication
Environmental conservation activities
Oral health

From November 29 to
December 7, 2011

Prevention Dental
healthof global
warming activities

Issuance of
CSR Report

Low Evaluation by employees High107 Employees(Readers of Lion’s mailmagazine)

Date ofimplementation

65 Customers

Contents ofsurveyTargetAnalysis of materiality survey(Comparison between evaluations by customers and employees)

Customer
support

Mass Tooth Brushing
Exercise for School Children
Information disclosure
through the website
Participation inenvironmental events

Supporting cultural andsports projects

Low Evaluation by customers HighCSR Report 2012 13

Response to ISO26000
Lion started issuing the CSR Report from 2005, andholding stakeholder dialogues from 2008. Since 2009,
we have participated in the United Nations Global
Compact, a global framework to realize sustainablegrowth, working on achievement of the ten principles
including human rights, labor, environment and anti-

corruption.
In 2011, with ISO26000, the international standards
for social responsibility, we started enhancing our CSR
management by objectively assessing our CSR activities
in cooperation with a third-party organization.

Flow of response

1

2

3

4

5

Confirmation/
evaluation of
our response

Importanceevaluation ofeach item

Hearing forgroup
companies

Setting goals

Operationin theentire Group

ISO26000
ISO26000 is an international standard issued in
November 2010 by the International Organizationfor Standardization, which serves as a guideline
for social responsibility for companies and otherorganizations. ISO26000 includes the principles ofsocial responsibility and a guideline to best practices tofulfill social responsibility in organizations. Seven core
subjects which organizations should address have been
set: organizational governance, human rights, labor
practices, the environment, fair operating practices,
consumer issues, as well as community involvementand development. For each core subject, the issues andthe related actions and expectations are indicated.

Seven core subjects and corresponding pages

Core Subjects

Corresponding pages

Organizational
governancep.16

Human rights

p.18

Labor practices

p.19

The environment

p.24

Fair operating practices

p.34

Consumer issues

p.36

Community involvementand development

p.42

Past activities
According to “related actions and expectations”
indicated for each core subject in ISO26000, we havemade efforts for understanding the current status of
the entire Group and identifying problems by taking
stock of Lion’s activities of each Group company.

14 CSR Report 2012

Although these are presently under examination,
promoting Group-wide CSR activities, and encouraging
supply chains and other business partners to makesuch efforts are expected to be our issues.

1

Confirmation and evaluation of our response

Our response to each item of ISO26000 was
confirmed by the CSR Promotion Department, thePersonnel Department, the Corporate Planning
Department and the International Division.
In order to receive an objective evaluation about
our actual status, we explained the details of ouractivities for each item to a third-party organization,and received advice. In addition to being evaluating
regarding whether or not we completed taking thenecessary measures, also confirmed and evaluated
was whether we had policies and management
systems, as well as the status of measures taken
throughout the entire Group.

2

Lion and CSR

B案

Explaining our activities to the third-party
organization

Evaluating the importance of each item

Together with the evaluation and confirmation of the responses, theimportance of each item was evaluated on the basis on global trends
in CSR as well as the Group’s business.

3

Holding hearings for group companies

Confirmation hearings for group companies areheld with regard to items considered to highly
important by relevant divisions of the parent
company.
After we complete the hearings for domestic
affiliates, we plan to hold hearings for overseas
affiliates.
Hearing for group companies

4 5

Setting goals, Operation in the entire Group

After understanding the actual situation of the entire Group, we clarify the important issues that we should tackle
within the Group. We then will provide further management with clear objectives with the aim of improving thelevel of our CSR activities.

CSR Report 2012 15

Organizational
Governance

Strengthening
our activities which arecentral to our
CSR management in orderto earn the trust of society

Lion Headquarters

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

Corporate Governance System
Lion has adopted a system of executive officers inorder to strengthen managerial decision-making andexecutive functions. Supervision of management isconducted through a corporate auditor system. Since

January 2012, we have enhanced our governancesystems, separating supervision and execution ofmanagement.
Supervision and monitoring of management wasenhanced with the installation of four independent
directors (two external board directors and two external
auditors) who satisfy the criteria as independent officer,
as dictated by the Tokyo Stock Exchange, as well as
through regular meetings held between the president
and all external directors to exchange information.
Furthermore, a Management Evaluation Committee
was set up in October 2003 to ensure that evaluations
and opinions by outside experts are reflected inmanagement.

Model of Corporate Governance System

Basic policies for
medium- to long-term
management plans andother major corporate
strategies

Proposals

Opinions and advice on legal compliance andmanagement policy

Board of Directors(Supervision of management)
Decisions on execution ofimportant business matters
Supervision of directors
executive performanceSupervision of executive ofﬁcers

Auditing

Corporate auditors
Monitoring(Legality audit)(Operational audit)

Reporting Delegation Reporting

Recommendations on director compensation
Environmental Action
Promotion Committee

Executive Committee(Execution of operations)

Reporting

CS/PL Committee
Disaster Prevention Meeting

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

Ensure fair trade
Promote social action
programs
Protect personal information

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

Strengthening oflegal compliance and ethics

Corporate Ethics Committee
Lion Group Charter for Corporate Behavior; Behavioral Guidelines

16 CSR Report 2012

ReportingAccounting auditors

Senior Executive
Committee

Auditing Office

Reporting

Auditing

Compensation Advisory Management Evaluation
Committee
Committee

Shareholders MeetingEnhancement ofInformation Disclosure

Lion is building up a management framework fordealing with all the major risks that could occur in
its business. Deliberation focuses on issues witha large impact on management, particularly thelowering of risks resulting from accidents or disasters,
the prevention of product related problems, andestablishment of initial response plans.
When the Great East Japan Earthquake struck in
March 2011, some plant facilities which were damaged
smoothly recovered in general, and product supply wasquickly resumed.
Triggered by the disaster, the business continuity plan
was enhanced with the review of existing measures,such as seismic strengthening of office buildings andplants, alternative arrangements for execution of
headquarter functions, and backup production at otherplants in times of disaster.

Relationship with Shareholders
An annual general meeting of shareholders is held each year
at the end of March at the Kokugikan (Ryogoku, Tokyo).
Attendance at the 2012 meeting was 1,755 people, hitting arecord high. Many questions were asked by shareholders during
the meeting, and afterwards they were given the opportunity
to meet with directors and view a display of new products topromote greater understanding of the Company.
Close communication with shareholders is also advanced
through the Lion Letter and reports to shareholders containing
information on earnings, new products and other matters,
which are sent out in September and March respectively.
Information
Concerning Shares(as of December 31, 2011)

Other corporate investors 18.00%

Number of Financial institutions
shares
35.59%
Number ofshareholders

Organizational
GovernanceRisk Management

Foreign investors 6.38%
Securities firms 0.13%
Individuals, Other(including treasury stock)39.90%

Individuals, Other (including treasury stock)98.41%
Securities firm 0.08%

Room of thelaboratory reinforced
against earthquakes

Establishment ofInternal Control Systems
Systems and provisions have been put in place to ensure theappropriateness of Lion Group operations in accordance withJapan’s Companies Act and the Ordinance for Enforcement of theCompanies Act*.
With regard to systems for evaluating and auditing internal control
over financial reporting, as prescribed in Japan’s Financial Instruments
and Exchange Act, Lion and the Lion Group have been establishing
controls at the company-wide and business-process levels since July
2006. In December 2008, the Board of Directors passed a resolution
on basic policy concerning internal control over financial reporting.
Evaluations of internal control effectiveness are carried out by
the Auditing Office, which reports findings to the president andcorporate auditors, as well as on a regular basis to the Board of
Directors. Areas requiring improvement are communicated toconcerned divisions and the progress of improvements is verified.
In 2011, Lion’s internal control over financial reporting wasdeemed effective. A report on internal controls was submitted to
the Prime Minister in March 2012 together with the Company’s
securities report.
*Basic policy of Internal Control Systems
URL http://www.lion.co.jp/ja/invest/corporate/system/

Foreign investors 0.39%
Other corporate investors 0.98%
Financial institutions 0.14%

Relationship with Investors
Lion discloses information through Internet and conducts
various IR events including earnings briefings to ensure that
corporate information is communicated in a precise, fair andtimely manner to investors in Japan and overseas. In 2011, 14
Company introductions for individual investors were held acrossJapan, attended by 1,600 investors. The opinions received at
the Company introductions have been reflected in our businessactivities through the feedback to our directors and employees.

Explanation about the Company at an exhibition booth at Company
introductions for individual investors

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

CSR Report 2012 17

HumanRightsRespecting
Human Rights of
All People Involvedin LionLion has stipulated “Respect for Human Rights” in the
Lion Group Charter for Corporate Behavior. Moreover, theBehavioral Guidelines refers to human rights of suppliers.
In 2009, we declared our intention to support the ten
principles of the United Nations Global Compact to clarify
our attitude conscious about human rights.

Frameworks to Ensure Respect for
Human Rights
Any problems related to human rights such as child labor,
forced or compulsory labor, or racial discrimination is
confirmed during the internal audit. If such problems haveoccurred, we work to understand the facts and confirm
whether our framework to deal with these problems isfunctioning.
In addition, we have a system in place to confirm the facts
and deal with them through a reporting system which is alsoavailable to our business partners.
With questionnaires for CSR procurement, we have checked
whether our business partners have policies for respect forhuman rights and elimination of discrimination, and theextent to which they are conscious about human rights. If
necessary, we would require them to improve the situation.
For related information, see p.34

Contact for Consultation andInternal Reporting
An internal reporting system, the AL (All Lion) Heart
Hotline*, has been set up as point of contact for employee
consultation for instances of non-compliance they havediscovered and for which cannot or should not reportthe violations through normal channels. A pamphlet
distributed to all employees, including temporary
employees, informs them about the system and the rules
for use, such as instructions for making contact andprohibition of unfair treatment of employees using thesystem. Business partners can also use the hotline, and

18 CSR Report 2012

contact information is available on the Company’s website.
In 2011, there were seven instances of consultation orreporting, but no instances of grave misconduct were
found.
*Heart Hotline
    URL http://www.lion.co.jp/ja/company/about/hotline.htm

Heart Hotline – Consultations and Notifications (2011)
Other
1 casePower harassment behavior
2 cases

Total cases

7 cases

Personnel/labor
management issues
1 caseAccounting/asset
management issues
3 cases

The System of “Heart Hotline”
Consulter/Informer(employees within Lion Group or business partners)
Consultations andNotifications

Consultations andNotifications

Feedback

Feedback

Report contents of consultation/
notification

Seeking solutions / Resolving problems

Basic Approach

Internal Contact

External Contact(general manager specialized incorporate ethics)(lawyer)

Report results of investigation andcountermeasures
ReportingInstruction

Chairman of the
Corporate Ethics Committee

ReportingBoard ofDirectors

The Corporate Ethics
Committee
Set up as needed

The Ethics Evaluation Committee(consisting of external experts)

LaborPractices

Creating a Bright andDynamic Workplace

Diverse Human
Resource Promotion Committee(Female Employees’ Subcommittee)

Fair Treatment of Employees
Aiming to make working for the Company rewarding for all
employees, a framework is in place to increase the understanding
and motivation of each employee through systems ofmanagement by objective and self-assessment, as well as
feedback from regular evaluations and interviews by superiors.

Promoting Amiable Labor-Management Relations
Operating under a union shop agreement, Lion has
endeavored to build upon amiable labor-management
relations, in which employees and management areproactively conducting activities such as reporting on
business conditions and exchange of opinions about
working environments at labor-management meetings.
Employees Data (non-consolidated)
Male
Regular employees
FemaleMale
New employees
FemaleNumber of people
Re-hired retirees%
Temporary employees（Number of people）
Female employees ratio（%）
Number of people
Female managers%
Number of people
Disabled employees%
MaleChildcare leave users
FemaleMale
Reduced hours for childcare
FemaleAverage overtime per month (hours)
Annual paid leave used (%)
Number of people
Departures with in three
years of entering Company
%

2009

2010

2011

1,883
566
40
31
125
4.9
264
23.1
32
4.8
48
2.0
5
38
0
40
10.3
48.6
6
3.0

1,873
583
49
25
147
5.6
255
23.7
34
5.1
44
1.8
3
35
0
48
9.9
51.9
5
2.6

1,842
597
47
23
142
5.8
289
24.5
37
5.5
43
1.8
4
26
0
55
11.2
54.1
1
0.5

* “New employees” includes new employees hired mid-year.
* Data as of December 31 of every year

Lion has made efforts for promoting human resource diversity
in light of major changes in the composition of the workforce
and the need to respond swiftly to changes in the businessenvironment.
The Diverse Human Resource Promotion Committee was set
up in 2010, which plans and formulates personnel measures forpromoting the active participation of diverse human resources.

Employee Motivation Consultation Center
The Employee Motivation Consultation Center was
established in February 2011 to help employees
develop a positive approach to their careers.
The center fields telephone inquiries from Lion
employees (including employees dispatched toaffiliated companies) and temporary employees, andprovides advice and information as required.

Labor Practices

Having valued Lion’s founder’s idea of “Employees are
partners in the Company”, Lion respects the individuality
and personality of all employees and helps them to honetheir skills and abilities and stay healthy in body and mind.

Human Rights

Human Resource Diversity

Basic Approach

Revision of Re-hiring System of Employees upon Retirement
In 2006, Lion began re-hiring employees who reached the
mandatory retirement age. With an eye to increasing motivationof both re-hired and current employees, the criteria was revised in
April 2012 to improve the working environment in order to allow
the re-hired employees to work in conditions similar to full-time
employees, such as re-hiring all applicants, changing duties during
the contract period, and awarding performance-based bonuses.

Employing People with Disabilities
Lion wants employees to be able to fully apply their talentregardless of disability. Not only do the immediate
superiors of disabled employees provide care in theform of consultation, we also have an establishedmentality of support at Lion to which everyone in theworkplace subscribes.

Improvement of the System for Re-hiring Former Employees
Lion has introduced a scheme to re-hire former
employees, aiming to allow them to be active again
using their experience based on their career, lifestyleand expertise gained at Lion.

CSR Report 2012 19

Labor Practices

Promoting Work-Life Balance
Lion strives to build an environment where employees
can work dynamically and deliver results, whilst placing
value on balance between work life and private life.

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

NursingChildcare

BirthMaternity leave
Special leave(childbirth by
spouse)・Paid leave from six weeks prior to birth to eightweeks after birth・Two days paid leave (bonus leave)

Next Generation Support Act
Phase 4 Action Plan
Period: April 2011 to February 2015
“Kurumin” logo - recognizing
support for the next generation
Goals:
1 Have seventeen or more male employees take childcare
leave during the action plan period.
→Three male employees took childcare leave. Another
employee of the sales division has taken the leave fora year from March 2012.

2 In 2011, raise the age of child applicable for”Exemption from overtime forchildcare” from”three years of age” to“under primary school age”.
→The new system was introduced in June 2011.
3 In 2011, Modify the unit of “Child sickness leave”
to allow employees to take half-day leave.
→The new system was introduced in June 2011.
4 Within the period of the action plan, implement measures
for supporting employees to strike a good balance between
work and childcare from viewpoint of career development.
→Scheduled to be implemented in 2012.
5 In 2011, introduce an overseas transfer support
system for couples both working for Lion.
→The system for domestic and overseas transfer was
introduced in June 2011.
6 Within the period of the action plan, introduce a telecommuting systemfor employees meeting the requirements prescribed by the Company.
→Starting tests in 2012.
*Next Generation Support Act Phase 4 Action Plan
   URL http://www.lion.co.jp/ja/csr/employee/work_life/

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

Reduced hours
for childcare・Up to two hours/day reduction in the workday
until the child finishes first gradeMessage from the Plant Manager to Employees

Exemptionfrom overtime

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

Plant wake up with the attitude of, “I’m gonna work
hard today!” Of course, I know you cannot always

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

Nursing careleave andreduced hours
for nursing care・Up to 93 days available to nurse each child asnecessary combining nursing care leave andreduced hours for nursing care

employees felt a sense of fulfilment at the end of each day through working in

Nursing careleave・Five days/year for one child or ten days/year for two
or more children provided by day for nursing caretalking with each other about things which need to be discussed, we can・Use accumulated annual paid leave that has expired
Accumulated(up to 60 days) for nursing a close relative
leave (nursing* Medical and volunteer leave are available in addition toof close relative)
accumulated paid leave.

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

Support for transfer of couples working for LionIn April 2011, Lion set up systems to support households of couples bothworking for Lion. When one partner is transferred in Japan or overseas,with prior registration the spouse can choose from the following three
options: 1) Accompanying the transferred spouse while putting his or her
own career on hold; 2) leaving the Company to accompany the spouseon the premise of being re-hired within five years; or 3) changing his or
her own work location to the place where the spouse was transferred.

20 CSR Report 2012

Our Workplace : the Chiba Plant

My goal is to have the people working at the Chiba

feel so good especially when you have hard work
waiting for you at the Plant. But, once you come to
the workplace, wouldn’t it be a wonderful plant if all

Masakatsu Iguchi
Plant Manager

supporting of each other? After all, we are all together “in the same boat“ soto speak. If we work together, respecting individual personalities and thoroughly
all make the Chiba Plant a wonderful place to work. I will take leadership toachieve the goal. But firstly, let’s all start by greeting each other with a smile.

Coming-of-Age Party
Chiba Plant holds a Coming-of-Age Party every year for employees whoturn 20 years old, the age of legal adulthood in Japan. At the party held on
January 12, 2012, strict yet heartfelt congratulatory speeches were deliveredby older colleagues, photos of
the new adults’ childhoods wereshown, and letters from theirmothers were read out. In hopethat they will grow up to be
From the left, Junpei Hanada (ahelpful to support the Company, new adult), Kunihiko Fujita (anall employees celebrated and older colleague), and Mizuki Nakai(a new adult)
cheered for the new adults.

Safety and Disaster Prevention Initiatives
Based on the principle of “safety first”, Lion has established its unique“Health, Safety and Disaster Prevention management system” forgroup companies including domestic affiliates, which added its own
disaster prevention measures to the “Occupational Safety and HealthManagement System” of Japan’s Ministry of Health, Labour andWelfare. We set up a Disaster Prevention Meeting which consists ofrepresentatives from production, R&D, administrative as well as sales
divisions, where employees and managers strengthen and improvemeasures for safety and disaster prevention in cooperation. Throughthe meeting, company-wide policies, targets (zero serious accident anddisasters), annual plans and achievements are managed and promoted.
At each business location, the Health, Safety and Disaster Prevention
Committee organized in accordance with laws, and mainly promoted
activities such as resolving issues unique to each business location,and reflecting employees’ opinions. In addition, a chairperson of theDisaster Prevention Meeting audits individual business facilities on aregular basis. In 2011, there were no serious accident nor disasters.

Response to emergencies
Taking into account our emergency responses taken
at the time of the Great East Japan Earthquake, werevised our manual for earthquake disasters after
enhancing response measures against earthquake in themetropolitan area and reviewing our product supply inthe event of a large scale earthquake.
Moreover we revised our “Disaster prevention card,”
a handy reference card for all our employees which lists
information and contacts in the event of a disaster.
The 2011 annual joint drill consisted of setting up
a disaster response task force in Osaka and quickly
restoring operations under the scenario of an earthquake
in the metropolitan area affecting the Headquarters.
Drills are also carried out on a regular basis and include
safety confirmation drills, evacuation drills, disasterleadership drills, firefighting drills, and joint drills withmunicipal firefighters.

In 2011, while the number of accidents considerably decreased
from a year earlier, the number of lost time accidents increased
from two to five. Recently, the number of accidents caused bycarelessness and overconfidence, such as falling on steps, hasbeen increasing. In order to raise employees’ awareness of safety,
we will enhance our day-to-day efforts and share information
about the accidents that occurred at all business locations.
With the health, safety, and disaster prevention management
system established, risks of new and changed operations areassessed by managers of each business locations, in order tosteadily facilitate elimination of hazardous factors.
One of key activities for 2011 was review of risk items.
Through continuous implementation of risk assessment, we will
create safer working environments.

Safety of Facilities
Lion’s plants and production facilities of affiliated companies suffered
minimal damage from the Great East Japan Earthquake.
After the restoration of lifelines and traffic networks, we gradually
rebuilt our production systems and resumed production activities. As
Lion’s main products are household articles, it was essential to quickly
produce and supply those products. Aware of our responsibility to supply
such daily necessities, we worked quickly to complete restoration workand could resume production about a month after the disaster.
At that time, our systematic maintenance which centers on essential
equipment and management of alternative components, which had
always been routinely implemented, proved effective.
We will further steadily work on the safety of our facilities,
systematically promoting facility maintenance from a long-term viewpointby ensuring implementation of inspections and fixing of facilities.

2007

2008

2009

2010

2011

0

0

0

0

0

Number of Work Accidents (excluding commuting accidents)
20
15

16

14
10

Labor Practices

Number of Facility Accidents/Disasters

Occupational Safety

10
11

10

8

5

7

7

2009

2010

2

0

2007

Lion

2008

2011 （year）

Affiliated companies

Work Accident Frequency Rate* in Production Division
1.2

1.10
0.88

0.9

0.84

0.6

0.74

0.71

2008

2009

0.72

0.72
0.67

0.3
0

0.00

0.00
2007

Lion

2010

2011 （year）

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

Hours without Accident at End of 2011 (Unit: ten thousand hours)
Research Division

Production Division

Hirai

Honjo

Odawara

Chiba

OdawaraOsaka

Akashi

751

70

87

325

339

263

119

CSR Report 2012 21

Labor Practices

Human Resource Development
Corporate Culture of Challenges, Create and Learn

Global Human Resource Development

Innovation has sustained Lion’s business activities eversince the Company’s founding, and it is individual
employee with the ability to practice “challenges,”“create,” and “learn” who generate the innovation
required to resolve business and technical issues. Lion
will foster a corporate culture by developing humanresources with the individual resolve to overcome
problems and create new value.

In addition to the “Overseas retail and distributionsector study tour” for sales personnel at managerial level
introduced in 2010, we newly introduced a “global humanresource enhancement program” for young and midcareer employees in 2011. Thirty employees selectedfrom among applicants publicly solicited participated in
the program. The purpose of this program is to foster
global personnel in charge of international business in astable manner and facilitate the globalization of business.
Participants, who may apply regardless of job type,continuously attend the program for about sevenmonths.
Domestic training programs are composed of basic
knowledge about Lion’s business and overseas general
education with the aim of fostering business viewpoints.
Meanwhile, in overseas programs, participants visit aforeign country for a week to directly learn about foreignculture, and then experience practical work at overseas
affiliated companies for a month. At the same time,by going to language schools etc., participants masterlanguage skills to leverage their specialty as well as
communication abilities to understand different cultures.

Education and Training Programs
Lion conducts rank-based and specialized job-based
training for all employees, offering programs according
to grade and job field.
Aiming at educating human resources from new
employees to managers and raising their awarenesswith an eye to global development, the rank-based
training promotes understanding of international
business development and enhances their language
skills.
Follow-up programs were also implemented forparticipants of new employee and mid-career rankbased training programs to ensure content was
adequately learned and to support further growth.
Standard Training Programs
New employee training
Mid-career training

Sales Division training

Global humanresourceenhancement
program

Action learning training in which participants engage inpractical work at overseas affiliates for a month, after
having undertaken training in Japan beforehand to improveunderstanding of overseas general culture, expertisenecessary for business, as well as English proficiency.

Presentations
at overseas
conferences

An opportunity for employees to present knowledge ortechnology developed through work or learning at overseas
symposiums as a way to nurture skills for global business.

Overseas retailand distributionsector study tour

Employees visit Western and Asian nations with advanced
distribution and retail sectors to gain firsthand, real-timeinsight into the impact of globalization on distribution
frameworks, thus helping to broaden their outlooks.

Domestic study

Employees study at a business school to enhance job
capability and business management skills.

Research andstudy group

Employee-initiated research and study relating to their work.

Lion Challenge
Cup

An annual in-house contest whereby teams present theirresearch to executives.

General education,business skills,
qualifications

Positive support for self-development in order to promote a
dynamic corporate culture of challenges, create, and learn.

Research/Technical Division training

Frameworks for Developing Tenacity
Lion has systems in place to support employees by allowing
them to fully develop their tenacity and creative potential.
Besides standard training programs, highly motivatedemployees have additional opportunities for skills
development, including elective training and selfdevelopment programs. The diverse line-up of selfdevelopment programs, in particular, helps employees
enhance their abilities.
To be more specific, we have the Lion Challenge Cup, an
opportunity for employees to present self-initiated groupresearch directly to Lion executives. We have also initiatives
for developing human resources capable of sustaining
overseas operations in this age of global business.

Global human resource training

Administrative/Planning Division training
Production Division training

22 CSR Report 2012

Self-Development Programs

Study

Specialized jobbased training

Overseas retail and distributionsector study tour

Management training

Joint research

Rank-based
training

Management

Distance
learning

Regular employees

Having viewed employees’ good health as a managementfoundation to support healthy corporate growth, Lion has
conducted detailed health support activities for each businesslocation. Almost all employees have annual health checkups andindividual post-check-up consultations (health guidance). Specifichealth check-ups and guidance have also been provided. In 2012,
we reorganized the health management offices of each businesslocation into the Health Support Office, a unified organization
throughout the nation which formulates the “Guideline for Health”.
In accordance with the guidance, we will develop our healthsupport activities using Lion’s own insights, while enhancing
cooperation among nurses, industrial physicians and company staff.

Guideline for Health“Life. love” means valuing one’s entire life. We desire to be of help for people
each and every day. This goal would be achieved foremost on the premise of “
health”.
The good health of our employees who are the Company’s partners is not
only the foundation of happiness of our employees and their families, but also
the foundation of management which supports healthy corporate growth.
Management and employees will work together to conduct proactive initiatives
toward maintenance and promotion of good health, aiming to be a healthy andvigorous company which can contribute to people each and every day.
On the basis of this idea, we will conduct health management activities incompliance with the guidelines shown below as well as with various laws andregulations, while fully taking into account privacy protection.

1. Improve health management ability
While employees recognize their own responsibility for healthmanagement, the Company provides support for the improvementof individual employees’ health management skills throughorganizational and ongoing health management activities.

2. Create a comfortable working environment
The Company ensures the employees’ good health through thecreation of a comfortable working environment where they canwork with ease and trust, and pays attention to employees’ healthconditions so that they can perform their duties with vitality.

3. Promote activities for the future
Making use of Lion’s features and insights, the Company
strategically promotes health management activities with aneye towards the future, from oral health to systemic health.
Enacted January 2012

Age 35 Health Seminar (LIS21)
We have been holding the LIS21 (Lion life innovation
seminar 21) overnight hands-on seminars every year
for employees aged 35. We found that participantsof this seminar have a higher degree of awarenessof lifestyle habits and that they were able to holdback weight gain five years after the seminar. As

we confirmed that theestablishment of good
health habits while still
young leads to preventionof diseases later on, theseminar has been effective
to raise our employees’
awareness of health.

Soaking up forest air as part of
LIS 21

Changes One Year After LIS21 Participation
Participants

No. with changed lifestyles

%

2006

120

111

92.5

2007

86

79

91.9

2008

91

82

90.1

2009

91

89

97.8

2010

96

87

90.6

Dental Prophylaxis Program (ALOHA*)
Focusing on impacts of dental health and oral health on
systemic health, in cooperation with the Lion foundation
for Dental Health, we have incorporated dental checkups
into the annual health checkups for all our employees
since 2002 in order to improve oral health. Based ondata from the checkups, we revealed the relationshipbetween metabolic syndrome and periodontal disease,and published research papers on this subject. We will
enhance our activities to prevent employees from having
periodontal disease and metabolic syndrome.

Labor Practices

Employee Health Management

For related information, see p.43
*ALOHA
All Lion Oral Health Activity

Mental Health Initiatives
With our Mental Health Basic Policy established in 2004, Lion has
taken proactive measures for the mental health of our employees,
aiming to create a working environment where each employee canwork with vitality.
For example, we implement an annual stress survey for all
employees every year, which is helpful for their self-care. Dependingon the results of the survey, detailed measures would be taken
through reviewing individual conditions at post check-up personal
consultations with an industrial physician and nursing staff.
In 2011, e-learning programs were provided, including programs
for all employees to be able to detect their own mental changes
at an early stage before they become serious, as well as programsfor managerial staff to promote their understanding of their
responsibility and roles concerning the mental health of theiremployees. All eligible employees participated in the programs.
In-house consultations are undertaken by industrial physicians,
nursing staff, psychiatrists and clinical psychologists. A contract
has also been entered into with an independent organization forproviding telephone consultation and counseling for employees.

CSR Report 2012 23

The
Environment

A Leading Company inEnvironmental
Friendliness Promoting
Sustainable Society

Lion Forest in
Yamanashi

Basic Approach
Environmental initiatives are essential for a company like Lion providing
products for day-to-day living. Aiming to be a leading company inenvironmental friendliness, Lion has promoted Eco Lion Activities which
are Company-wide environmental conservation activities including thefollowing five core initiatives in accordance with the environmental
guidelines: 1) reducing greenhouse gas emissions; 2) effectively using
and recycling resources; 3) considering the environment from a productoriented perspective; 4) appropriately handling chemical substances;and 5) fostering environmental awareness within the Lion Group.
Our ongoing efforts in environmental protection will contribute to
the creation of a sustainable, low carbon and recycling-oriented society,and will help to promote coexistence with nature.

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

Environmental Guidelines
Lion’s Environmental Guidelines adhere to the spirit of the LionGroup Charter for Corporate Behavior, which states: “We shallplay a positive and active role in creating a Sustainable Society,harmonizing economic development and environmental protection.”
The Environmental Guidelines are a clear statement for theCompany to take initiative for Eco Lion activities and develop
eco-friendly products, to engage in business activities with due
consideration to air and water environments as well as biodiversity,and to lower environmental impact throughout the supply chain.

Environmental Guidelines
Lion will act voluntarily and proactively to reduce its environmental burden to theglobal environment in all processes of business activities from the development of
products to the procurement of raw materials, production, distribution, sales, use bycustomers, as well as disposal, with due consideration to global warming prevention,effective use and recycling of natural resources, as well as to contribution to theimprovement of people’s health, natural ecosystems and biodiversity.
(1) Aiming for a Sustainable Society
Promote an environmental management system, and through ongoing
maintenance and improvement of that system, protect the global environment.
(2) Complying with Legal and Other Requirements
Comply with the system of legislation, regulations and arrangements pertaining toenvironmental protection, and establish and implement voluntary standardsof conduct.
(3) Setting and Verifying Implementation of Environmental Objectives and Targets
Correctly understand the environmental impact of corporate activity, and as far
as technically and economically possible, establish objectives and targets
for improvement, while at the same time formulating, implementing
and regularly verifying the status of implementation of an environmental
management program.

24 CSR Report 2012

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

Each plant

Administrative / Sales
DivisionManager ofenvironment
management

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

Each office

Each laboratory

Affiliatedcompanies(4) Developing Environment-Friendly ProductsContinue aggressively with product development in tune with Lion’s own “Lion
Eco Standards” in light of lifecycle assessment.
(5) Advancing Green Supply Chain Management
Construct a green supply chain with raw material suppliers, OEM partners andretail outlets, and strive for environmental burden reduction throughout entire
product lifecycles, from procurement to provision of products to customers.
(6) Coexistence with Nature
Conduct business activities while taking into account biodiversity and air andwater environments, and proactively address natural environment protection
activities.
(7) Enhancing Environmental Protection Activities Based on Uniform
Understanding of the Guidelines with in the Lion Group
Disseminate the Guidelines to all Lion employees, including those of its
affiliated companies, raise an awareness of environmental protection among
them and bolster environmental management activities throughout theentire Lion Group.
(8) Promoting Disclosure of Information
Seek to maintain and promote communication with stakeholders involvedin Lion’s businesses. These Environmental Guidelines are freely available toanyone upon request.
Revised April 1, 2010

The purpose of Lion Group’s environmental management system is
to identify, evaluate and rectify adverse effects on the environment
associated with our business activities, products and services, andto facilitate ongoing improvements in our environmental protection
activities. Ongoing improvements will be achieved throughimplementation of the plan-do-check-act (PDCA) cycle in line with
the Environmental Guidelines.
Systems for environmental management and reporting activities
have been enhanced with the aim of global environmental
responses. As a result, data of overseas affiliated companies which
we obtained have been available on our website since 2010.
* Environmental Management System
URL http://www.lion.co.jp/ja/csr/env/management/* Data on environmental burden of affiliated companies’ plants (overseas)
URL http://www.lion.co.jp/ja/csr/report/pdf/overseas.pdf

Status of ISO 14001*1 Certification
Lion acquired ISO 14001 group certification covering all its plants
in July 2001. Certification was reviewed and extended by theJapan Management Association Quality Assurance Registration
Center (JMAQA) at three-year intervals, in May 2010. Througha maintenance examination taken in 2011, it was verified thatframeworks to maintain management system are properly operated,conforming to requirements of the standard. Based on results of theexamination, continual improvements are made to management
systems and environmental protection activities based on audit
results. Also in relation to plans of affiliated companies, Lion has
obtained ISO14001 certifications, and operated environmental
management systems in compliance with ISO14001.
*1 ISO 14001:
A global standard governing voluntary environmental efforts by organizations

ISO14001 Certificate of Registration

Internal Environmental Audits
Employees who are qualified as internal environmental
auditors after undergoing appropriate training
routinely implement internal environmental audits toverify total conformity to ISO14001 requirements andconduct management reviews. Individual departments
take responsibility for rectifying any non-conformity
and reporting improvements to a responsible generalmanager.

Executive Environmental Audit
The director of the board responsible for CSR, who chairs theEnvironmental Action Promotion Committee, carries out executive
environmental audits covering plants of Lion and affiliatedcompanies on a regular basis together with safety audits.

Executive safety and environmental audit

Legal Compliance
Lion complies with all environmental laws, ordinances and otherregulations, and we ensure thorough management according toour own independent standards.
Waste treatment contractors must satisfy criteria stipulated
in waste management regulations in order to be selected bywaste supervisors at each site. The premises of waste treatment
contractors are inspected on a regular basis to verify conformity to
the criteria.
In the past, we have used equipment containing polychlorinatedbiphenyls (PCB). This equipment is stored securely in line withlegal requirements and gradually disposed of through Japan
Environmental Safety Corporation (JESCO).
In 2010, a soil survey conducted after the closure of a researchbuilding at Hirai Office revealed specified hazardous substancessuch as lead and arsenic in concentrations exceeding limits
stipulated by the Soil Contamination Countermeasures Act. Thesefindings were reported to the Tokyo Metropolitan Government. In
May 2011, the above-mentioned land was designated as “Landsubject to notification of changes of the land character”*2. We willcontinue to act appropriately in accordance with the law and incooperation with the authorities.
Wastewater is constantly managed to ensure that statutory limits
on wastewater are observed. This involves improving the reliabilityof wastewater processing facilities, strengthening and ensuring
management during processes, and conducting emergency drills.
Adjustments are also being made to frameworks in line withrevisions to related laws — namely, the Act on the Rational Use ofEnergy, Act on Promotion of Global Warming Countermeasures,
Act on Confirmation, etc. of Release Amounts of Specific Chemical
Substances in the Environment and Promotion of Improvements to
the Management Thereof and Act on the Evaluation of Chemical
Substances and Regulation of Their Manufacture, etc.
There were no infringements resulting in a fine or other penalty
during 2011.

The Environment

Environmental Management System*2 Land subject to notification of changes of the land character:Of the categories of land which do not conform to the criteria provided
for in the Soil Contamination Countermeasures Act (land for whichcountermeasures are required, etc.), this is a category of land where it is
not required to take measures for eliminating contamination as there isno possibility of health damage.

CSR Report 2012 25

The Environment

Environmental Targets and Achievements
In 2011 which was the second year of “the medium-term
environmental plan for the three years” formulated in 2010, ourplans to steadily carry out various measures were significantly
affected by the Great East Japan Earthquake.
Our CO 2 emissions target was achieved with effects from both the

shutdown of plants due to the disaster and energy-saving measures.
While total waste generation decreased from a year earlier, the targetof waste reduction could not be attained in 2011. This is because of
the disposal of damaged products and addition of washing water fordamaged facilities in spite of a year-on-year decrease in wastewater.
◎：Attained

Environmental Targets and Achievements
Category

CO2 emissions
reduction

Waste
reduction

Effective Use of
Water Resource

Chemical
substance
management

Environmental
management
structureenhancement
Environmental
awareness andcommunication

Target×：Unattained

Achievements

2012

2011

Principal measures in 2011

Attainment level in 2011

Relatedpages

Reduce energy-derived CO2 emissions
from business activities by 30% or morecompared to 1990

Reduce 29% or more

Reviewed laundry detergent production
efficiency(Outage due to the Great East Japan
Earthquake)◎(35% reduction compared to
1990)

p.32

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

Reduce by 1% or morecompared to the previous
year

Increased the loading efficiency intransportation

×(0.7% increase compared tothe previous year)

p.32

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

Reduce by 1% or morecompared to the previous
year

Conserved energy by reviewing production
conditions◎(1% reduction compared to theprevious year)―

Reduce total waste generation by 55％ ormore compared to 1990

Reduce by 54% or more

Turn more waste into valuable resource(Target unattained due to disposal ofdamaged products)

×(53% reduction compared to
1990)

p.30

Attain“zero emissions” status groupwide*1—

Deployed Lion’s measures at affiliatedcompanies―

p.30

Reduce wastewater by 20% or morecompared to 2005

Reduce by 16% or more

Reduced in-process washing water(Target unattained due to addition ofwashing water for damaged facilities)

×(14% reduction compared to
2005)

p.31

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

Completed notification of managing
substances newly specified under revisions to
the law Reduced by deliberating production
conditions―(43% reduction compared to
2005)

p.30

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

Reduce by 75% or more

Introduced VOC recovery systems andimproved product composition◎(78% reduction compared to
2000)

―

Carry out environmental management
according to the PDCA cycle

Set short-term targets foroverseas sites

Completed setting of targets◎―

Identify and perform accounting forenvironmental liabilities—

Responded to a soil survey

―

p.25

Continue to promote Eco Lion
activities

Promote activities forbiodiversity, a new policy of
Challenge 25

Made efforts for power conservation insummerConducted activities to protect marine turtles
Maintained biotope spaces

◎

p.33

*1 L ion defines“ zero emissions” as the achievement of a 99% or higher recycling rate for total waste generated. However, this does not include residues from recycling.
*2 With substances specified by the law before revised, the target was set and its attainment level was calculated.

Environmental Accounting
Each year, we tabulate environmental protection costs,
environmental protection benefits, and economic benefits (actual
benefits) associated with environmental protection activities of theentire Lion Group based on Ministry of the Environment guidelines.
The tabulation period is the same as the Company’s accounting year,
January-December 2011.
Environmental Protection Costs
In 2011, both investments and expenses decreased.
This is because, among eco-friendly products, type oflaundry detergents to be produced has been shifted

26 CSR Report 2012

to liquid for which facility costs are lower, and because
depreciation cost decreased with removal of a part ofdrying towers in Osaka Plant.
Environmental Protection Benefits
Energy usage reduced by 12,000 tons on CO 2 basis due toimpacts of the Great East Japan Earthquake and the subsequentCompany-wide power conservation measures. Industrial water
usage decreased by 34,000m3 with efforts for reducing usageat production plants which usually consume a large amountof water, in addition to impacts of the disaster. Total waste
generation increased by 2000 tons with additional disposal of
products damaged by the disaster.

Economic Benefits (Actual Benefits) Associated withEnvironmental Protection Activities (million yen)

Economic Benefits
Cost savings by resources saving includes revised
specifications of packages.
Savings on water and sewerage charge were thanks
to use of rain water and water-saving efforts.

Benefits--

Cost savings due to resource efficiency

135

Savings on water and sewerage charges

8

Savings on waste treatment expenses*--* Includes sales of items of value

Environmental Protection Costs (million yen)
Principal activities

Business area
costs

Environmental Protection Benefits

Investments Expenses

Pollution prevention
Air pollution prevention
Water pollution prevention, etc.

7298

Global environmental protection
Energy conservation, etc.

134

4,053

Resource recycling
Waste treatment, Recycling, etc.

0293

Eco-friendly products
Eco-friendly productmanufacturing facilities, etc.

926

4,577

Category

Year-on-yearchange

2011

NOx emissions (tons)
SOx emissions (tons)
Particulate emissions (tons)
Total COD (tons)

Related
pages

53
25
5
11

△7
10
△1
1

Energy usage (t-CO 2)
Industrial water usage (m3)City water usage (m3)
Wastewater (m3)93,125879,037
419,749
703,158△12,228△33,671△4,486△26,466

p.31-32

Total waste generation (tons)
Final waste disposal (tons)
Recycling rate (%)(recycled volume ÷ volume
consigned)

8,278
185
97

△154
△17
2

p.30

Plant-based materials, biodegradable materials, compact
products, refill products, recycled paper use, recycled PET use,
etc.

p.30

p.40-41

Upstream/
downstream
costs

Outsourcing fees incurred due toJapan’s Containers and Packaging
Recycling Act
Waste treatment, etc.

Administration
costs

ISO 14001 renewal expenses,
environmental education, publishingof reports, exhibits, etc.

0620

p.24-25・
29

R&D costs

Costs for developing eco-friendly
products, etc.

110

1,433

p.40- 41

Social activity
costs

Local environmental activities,
donations, etc.

0

20

p.29

Environmental
remediation
costs

Tax imposed on pollution
performance, etc.

0

2

p.25

1,177

11,910Lion Group total―

614

Packaging materials used (tons)
Waste (tons)△2,4272,016

62,896
4,308

p.41

The Environment

Environmental Accounting (2011)
Category

Year-on-year reduction

Cost savings due to energy conservation

Eco-Efficiency
Lion calculates eco-efficiency according to thefollowing formula to evaluate the efficiency ofcorporate activities in terms of environmental impact.
Efforts are then made to improve eco-efficiency.
Eco-efficiency based on LIME decreased in 2011
due to an increase in the environmental impact value
resulting from disposal of products damaged by thedisaster.

Eco-Efficiency and Environmental Impact Value(Compared to 2005)
Eco-efficiency(%) Environmental impact value (compared to 2005)
150

100

400

356
318
102％

370

399

375
300

91％

83％

79％

83％
200

50
100

Eco-Efficiency ＝

Outcome of business activity (net sales)
Environmental impact value (calculated using LIME)* Environmental impact value: The environmental damage expressed inmonetary terms calculated using a Japanese life cycle impact assessment
method based on endpoint modeling — LIME.

0

2007

Eco-efficiency

2008

2009

2010

0
2011 （year）

Environmental impact value* Environmental impact value is calculated using the LIME2 integrated
coefficient list (July 1, 2010 version).

CSR Report 2012 27

The Environment

Overview of Environmental Impact of Lion’s Business Activities

INPUT

OUTPUT

EnergyEmissions into atmosphere
51,530kL

CO2 emissions

93,125tons

Electricity

96,710million Wh

Production
activities

85,315tons

Natural gas

10,432,000m

Non-production
activities

7,810tons

Total energy usage(crude oil equivalent)（△5,461）（△6,999,000）
3（△2,042,000）

14,543kL

Other fuels（△1,292）(crude oil equivalent)（△12,228）（△11,140）（△1,088）

NOx emissions

53tonsSOx emissions

25tons

PRTR chemical
substances

26tons

（△7）
（10）
（ 0）

Materials
Raw material
PRTR chemical
substances

361,000tons（ 29,000）

81,000tons

Emissions into water(Lion Group)（△16,000）

703,000m

Wastewater

3（△27,000）

0 tons

PRTR chemical
substances

Water resources
Water used

（ 0）

Waste

1,299,000m

3（△38,000）

Tap water used

420,000m

Industrial
water used

879,000m

3（△4,000）
3（△34,000）

Figures in parentheses indicate change
from previous year

Total waste
generation

8,278tons

Consigned forrecycling

6,421tons（△154）（1,894）

Final waste disposal

185tons

PRTR chemical
substances

262tons

（△17）
（△35）

Logistics

Logistics
18,803tons

CO2 emissions（△1,404）

Customers

Products
Net sales
Waste packaging

28 CSR Report 2012

327.5 billion yen（△3.6）

36,803tons（△2,276）

Environmental Communication
Regular Environmental Education and Communication

Environmental Activities for Business Partners

Environmental education is conducted on a regularbasis for all employees.
Education provided during 2011 included programsfor new employees, employees in charge of waste
management, employees in charge of chemical
substance management, and internal environmental
auditors. An additional ten employees took part in aninternal environment auditor training seminar.
In-house media were also used to increase employees’knowledge and concern for the environment, forexample by introducing environmental activities
pursued by individual departments.

We have set up a section for Lion’s CSR activities in a
magazine for members of Lion-Kai, and introduced ourenvironmental initiatives to them. Also through “LionKai Fax News” issued twice a month, our environmental
activities are introduced in a timely manner.

Magazine for Lion-kai members

Interaction with Communities and Organizations

Environment-related articles in the in-house newsletter

Participation in Environment-Related Events
Lion wants many people to know about its environmental
activities. At Eco-Products 2011, one of the Japan’slargest environmental exhibitions, we introduced ourefforts for reducing environmental burdens throughexperimental products, and made presentation onwater environment conservation activities and initiatives
for biodiversity. We also participated in environmentrelated exhibitions held in areas near our businesslocations, including the Sumida Environment Fair 2011
and the Ecomesse in Chiba 2011.

Eco First Companies Association Activities
The Eco First Companies Association*, an independent
organization run by companies recognized by Japan’s
Ministry of the Environment (MOE) as front-runners
in environmental action, held a “Forest Ecotowaza(Eco Proverbs) Contest”supported by the MOE
and Forestry Agency. Judged and supervised by theJapanese Society of Paroemiology as well as thewinners of Eco First Companies Association Prizes(first prizes), the association member prizes andother awards were selected from a large number ofsubmissions. Awards were presented at the venue of
Eco Products 2011.
Furthermore, participating in the Eco Life Fair 2011
hosted by the MOE, we introduced initiatives of the
Association to visitors, and encouraged them to takeactions for power conservation.

The Environment

Lion participates in activities of the Japan Chemical
Industry Association’s Responsible Care (RC) Committee,
through which the chemicals industry strives forongoing improvements to safety and environmental
considerations throughout the life cycle of chemical
substances, from development to disposal. Lion Chiba
Plant participated in the 8th Chiba area Responsible
Care dialogue meeting held in February 2011.

*Eco First Companies Association
URL http://www.eco1st.jp/

Lion’s exhibition booth at Eco-Products 2011

Commendation
ceremony for “Forest
Ecotowaza (EcoProverbs) Contest”

CSR Report 2012 29

The Environment

Pollution Prevention
Total Waste Generation by Lion Group

Production Activities Conscious about Air and Water Quality

In 2011, the Lion Group reduced total waste generationfrom a year earlier to 8,278 tons, which is equal to
47% of the 1990 level. However, 2011 target of areduction to 46% or less of the 1990 level could not
be achieved due to disposal of products damaged by
the Great East Japan Earthquake. We aim to reduce
waste to 45% of the 1990 level by 2012 throughrenewed efforts to ensure thorough sorting of waste
and turn waste into valuable resources.

Lion also implements voluntary initiatives for reducing
emissions of chemical substances that cause air
pollution, including nitrogen oxides (NOx), sulfur
oxides (SOx), particulate matter, and volatile organic
compounds (VOC). We also strive to reduce COD withimprovement in reliability of wastewater processing
facilities and periodical maintenance.
Data on management of chemical substances,including notifications in compliance with the PRTR
system is summarized in site reports for each businesslocation*, and available on Lion’s website.

Total Waste Generation by Lion Group（tons）
20,000 17,646（100％）*Site Report  URL http://www.lion.co.jp/ja/csr/report/

15,000
9,635
10,000
5,000
0

9,913
（56％）

9,006
（51％）

6,682

5,670

3,231
2007

Affiliated companies

8,432
8,278
（48％） （47％）

5,836

6,084

5,532

3,336

2,275

2,348

2,746

2008

2009

2010

2011（year）

8,011

1990

8,111
（46％）

Lion

Final Waste Disposal by Lion GroupIn 2011, the Lion Group reduced final waste disposal
by 98% compared to the 1990 level. Accordingly,
since 2007, we have continuously attained thetarget established by Keidanren (the Japan Business
Federation), a reduction of 89% or more by 2015
compared to the 1990 level.
Lion plants also attained zero emissions status in
2002, and have maintained that status since then.
Among affiliated companies, 5 of 6 production sites
have already achieved zero emissions.
We will now focus on attaining group-wide zero
emissions status.

Appropriately Handling Chemical Substances*
Chemical substances are indispensable for people
to lead comfortable and fulfilling lives. Failure toproperly manage chemicals, however, can result inaccidents that put human health and ecosystems atenormous risk. In addition to compliance with related
laws and regulations, Lion strives to ensure strict
management of chemical substances at all stages fromproduct development through to use and disposal inaccordance with our own independent standards.
*Appropriately Handling Chemical Substances
URL http://www.lion.co.jp/ja/csr/env/chemicals/

Lion’s Chemical Substance Management

1 Product Development

Safety verification and management of chemical
substances contained in raw materials

2 Production

Final Waste Disposal by Lion Group(tons)

7,580

Measurement and reduction of chemical
substance releases

8,000 （100％）
7,000

3 Transportation

6,000
5,000
4,000
3,000

Keidanren Voluntary Action Plan 2015 Target

2,000

830
764
（11％） （10％）

1,000

0

1990

2007

2008

291
202
185
（4％） （3％） （2％）
2009

2010

Provision of safety information duringtransportation

4 Use and Disposal

2011 (Year)

Provision of information on safety
and handling of chemical products

30 CSR Report 2012

Sustainable Use of Resources
Switching from Petroleum to Botanical Resources

Effective Use of Water Resources

Methyl ester sulfonate (MES) and methyl ester
ethoxylate (MEE), unique surfactants developed by
Lion, are raw materials of detergents derived from
reproducible plants, which can contribute to restrictionof CO 2 emissions.
After use, surfactants including detergents aredecomposed by microbes in the environment tobecome CO 2 and Water. As plants grow up, absorbing
CO2 in the atmosphere, when surfactants made fromplant-based ingredients are decomposed, they do notrelease any additional CO2 into the atmosphere (theyare carbon neutral). We will work on use of plantderived materials.

Lion keeps a constant close watch on water usage andwastewater volume and works to reduce water usage
through cyclic use and lower environmental impact. In
2011, taking measures for reducing usage of in-processwashing water, we reduced total water usage from ayear earlier to 86% of the 2005 level. However, thetarget of reduction to 84% of the 2005 level or lower
could not be attained, with additional washing waterused for facilities damaged by the Great East Japan
Earthquake. Further efforts will be made to protect
water resources through process improvement and othermeasures.
Lion Group’s Water Usage, Wastewater Volume, and COD*
(1,000m3) Water usage/Wastewater

Light Energy

CO 2
Photosynthesis

No increase
in total CO 2

1,500

O2

1,000

500

100

1,509
1,365

820

0

17

2005

1,414

1,320

1,337

1,299

75

50
750

27

Plant-based
ingredients
Released into air

COD (tons)

2,000

2007

Water usage

757

690

730

703

12

10

11

2009

2010

2011

21

2008

25

Wastewater0(year)

COD* Chemical Oxygen Demand (COD):
An indicator of water contamination measuring the amount of oxygen
required to oxidize and break down organic substances in water.
Product made fromplant-based ingredients

Biodegradation

The Environment

Carbon Neutrality

Green Purchasing
Green purchasing of office supplies used by employees
Company-wide is being advanced by expanding the listof available items. The green purchasing ratio in 2011
was 82% (80% in 2010).

Development of Eco-Friendly Technologies which can Contribute to the World
Since joining the Company in 1990, I haveengaged in study of MES, an environmentallyfriendly surfactant which is plant-derived
materials of detergents. We have developed
technologies to produce high quality productswith less environmental impacts, which have beenpresently used at Lion Eco Chemicals in Malaysia.
I hope to make a global contribution with ourtechnological ability, spreading Lion’s eco-friendly
surfactants all over the world.

Taku Nishio
Associate SeniorResearch Manager,
Process Development
Research Laboratories

CSR Report 2012 31

The Environment

Mitigating and Adjusting to Climate Change
Reducing Greenhouse Gas Emissions

Reducing CO2 Emissions after Product Use

Looking beyond the Kyoto Protocol, the Lion Group set highgoals of reducing CO2 emissions by 30% or more in 2012,
and 40% or more in 2020 compared to the level of 1990. At
Lion, each employee is committed to reducing CO2 emissions.

Lion focuses on ways to reduce CO 2 emissions
generated after product use through its product-related
research and development activities. Specifically, we
have worked on replacing petroleum-based surfactant
ingredients with plant-based ingredients that do notlead to an increase in CO2.

Reducing CO2 Emissions from Business Activities

For related information, see p.31

In 2011, the Production Division worked to reduce CO2
emissions through persistent energy-saving measuresin addition to a review of laundry detergent production
efficiency and other efforts. Our Administrative & Sales
Division and R&D Division advanced activities relating to
the Challenge 25 Campaign – a national movement forthe prevention of global warming promoted by Japan’s
Ministry of the Environment. As a result, CO2 emissions
were reduced 35% in 2011 compared to the level of
1990, even with impacts from the shutdown of production
facilities due to the Great East Japan Earthquake.

Total CO2 Emissions Derived from Business Activities
and Products

CO2 Emissions Reductions and Targets

200,000

Combining emissions from business activities andemissions generated after product use, our total CO2
emissions decreased 55% in 2011 compared to the1990 level.

(tons)
350,000

319,385（100％）

300,000
250,000

175,834(tons) Energy-derived CO2 emissions
150,000

150,000100 ％

174,551（55％）

57,81069,19873％
100,000

65％

105,738

105,353

93,12550,000

2009

2010

2011

（50％）

143,551

70％
60％

50,0000

143,551
105,353

144,915（45％）
51,790100,000

125,000

75,000163,548
（51％）

1990

Product-derived
CO2 emissions

93,1252012 Target (year)

CO2 emissions frombusiness activities

25,000
0

1990

2010

2011

2012 target 2020 target(year)

Reducing CO2 emissions withcompany vehicles
Gradually introducing small-displacement and low-emission
vehicles as company vehicles, we have been working on
reducing CO2 emissions from our vehicles. With the ongoing
introduction of hybrid cars since 2010, we plan to increase
the percentage of hybrid cars in all of our company vehicles.
In addition, we have made efforts for reducing the numberof company vehicles with internal car sharing, and haveencouraged “eco-driving” which includes idling stop as wellas smooth start-up and acceleration driving practices.

Using hybrid cars for sales
activities

32 CSR Report 2012

Initiatives in Logistics
Lion works to reduce CO 2 emissions and specificenergy consumption through efforts to improvelogistics efficiency, such as improving transport loading
rate and implementing joint deliveries with othermanufacturers. We are also pursuing modal shifts fromtruck transportation to transportation by rail or ship.
In 2011, the modal shift rate for all traffic volume was
19.9%, and 66.3% for long-distance transport over
500km.
While total CO2 emissions in logistics were 18,803
tons, a 5.4% reduction from the previous year, Lion’s
target of a year-on-year reduction of 1% or more
(specific energy consumption) could not be achieved
due to the deteriorated logistics efficiency resulting
from the Great East Japan Earthquake. However, we
continued to satisfy guidelines to the revised Act on
the Rational Use of Energy by achieving a reduction of
1% or more (specific energy consumption) on averageeach year from 2006.

Biodiversity Conservation
Approach to Biodiversity Conservation

Surveying Environmental Impact

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

As almost all of Lion’s products end up being discharged intorivers, streams and other waterways after use. We assess
this during the development stage to confirm that it is safefor the environment. In order to check that the environment
has not been harmed, we also participated in surveys on theconcentration of four kinds of surfactants in rivers near Tokyo
and Osaka, as well as in ecological risk assessments (fourtimes a year), which are implemented by the Japan Soap andDetergent Association. Thus far studies have found that therisk of wildlife being harmed is extremely low.
As surfactants “MES” and “MEE” are substancesdeveloped by Lion, we have investigated and assessed theconcentration of these in the same public water areas,
and verified that their impacts on ecological systems are
immaterial.
Lion is not the only organization engaging in safetyassessment and confirmation. Besides acquiring andapplying the latest information and technology available inJapan and overseas, we disseminate our own information,
contributing to safety advancements.

Production of palm oil is steadily increasing due tohigh productivity and the ability to harvest throughout
the year. Downsides to the development of newplantations, however, are the clearing of tropicalrainforests and the shrinking of wildlife habitats.
In an attempt to resolve such problems, Lion has
been a member of the Roundtable on Sustainable
Palm Oil (RSPO)* since 2006. Plantation audits andcertified palm oil distribution commenced in 2008. We
are aiming at switching completely to palm oil certified
by RSPO by 2015.
Lion will continue to work with concerned organizations
such as the RSPO to promote sustainable palm oil
procurement.

*The latest data of river environment monitoring by Japan Soap
and Detergent Association
URL http://jsda.org/w/02_anzen/3kankyo_15.html

Protection of Rare Species
Alongside business activities, Lion engages in activities
like protection of rare species. Employees participate
in these activities as volunteers, and that experience
makes them more aware of environmental matters as
they go about their jobs.

The Environment

Aiming for Sustainable Procurement of Palm Oil

Breeding of Sakawa River
System Killifish

The 9th RSPO Meeting* RSPO (Roundtable on Sustainable Palm Oil)   URL http://www.rspo.org/

RSPO Certified Sustainable Palm Oil
RSPO established eight principles and 39 criteria
required for sustainable palm oil production, including“environmental responsibility and conservation ofnatural resources and biodiversity”, “responsible
development of new plantings” and “ responsible
consideration of employees and of individuals, andcommunities affected by growers and mills”. Only
palm oil, which is produced fulfilling those principles
and criteria, is certified as sustainable palm oil.

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

Support for Sea Turtle
Protection
Under the guidance of the nonprofit organization Sea Turtle
A ssociation of Japan, Osaka
Plant plays a lead role in activities
to protect the endangered
loggerhead sea turtle.

Survey on Signs of Wildlife
In cooperation with NPO
Ear thw atch Japan, w e hav egathered data for studying theimpact of forest maintenance on
flora and fauna in the Lion Forest
in Yamanashi.

CSR Report 2012 33

Fair Operating
Practices

Conducting Thoroughly
Fair Business Activities inCompliance withSocial Rules

Initiatives for Value Chains

Basic Approach
In the Lion Charter for Corporate Behavior and Action Guideline, Lion has
stipulated compliance with relevant laws and regulations; fair, transparent
and free competition; fair trade; and maintenance of healthy and normal
relationship with political and administrative organizations, as part ofits Compliance with Social Rules. In addition, various efforts such asproviding individual training to relevant departments have been made.

Promoting Compliance
The Corporate Ethics Committee, chaired by the director
responsible for corporate ethics, works to foster complianceawareness within the Lion Group.
The basis for compliance is the Lion Group Charter for Corporate
Behavior. This is distributed in pamphlet form to all people working
for the Lion Group and is publicly available via the Lion’s website.
An annual program of employee awareness surveys and regulareducational activities is also implemented, the latter including
e-learning, lectures by outside speakers, and various training
courses conducted at each workplace and according to rank.

Compliance Awareness Survey
All Lion Group employees are asked every year to complete acompliance awareness survey. Findings are reported to management
and feedback is provided to individual divisions in order to communicate
issues within the same workplace or company. This contributes to themaintenance and strengthening of compliance systems.
The fiscal 2011 survey (conducted in March 2012 with a 96%
response rate from around 4,000 employees) drew opinions on a range
of issues including problems with work environments.
Percentage of Employees Who Received Survey Feedback
0

20

2007
2008
2009

40
56.0 %

100（%）

80
42.6%

72.5 %
80.3%

2010

87.7%

2011

90.5%

(FY)

60

Feedback received

1.4%

26.5%

1.0%

19.3%
12.0%

0.3%
0.3%

9.2% 0.3%

Approach to CSR Procurement
Lion carries out appropriate procurement of raw materials and finishedproducts in keeping with its Purchasing Activity Principles and has
promoted development of a supply chain management system.
In 2008, we formulated the Procurement Principles*, a set of CSR
procurement guidelines clarifying social and environmental considerations.
In 2009, we asked domestic and overseas business partners toacquaint themselves with the Procurement Principles and complete aquestionnaire. Subsequently, re-examination was asked business partners
which did not respond to the questionnaire (77% response rate at theend of 2011). We will continue to disseminate the Procurement Principles
to our business partners and understand the status of CSR activities.

Procurement Principles
Since its foundation, Lion has been doing its
utmost to provide safe, high quality products andservices that promote healthy, comfortable lifestyles.
Upholding this effort in the procurement of raw
materials and the purchase of products, and with thecooperation of our business partners, we shall:
1. Comply with prevailing laws and social norms and engage inappropriate, rational transactions with every business partner
in a freely competitive framework that is equitable, fair andtransparent;
2. Rationally select business partners on the basis of quality, cost
and timely delivery to fulfill our responsibility to customers;
3. Fully consider throughout our purchasing activities oursocial responsibilities in such areas as global environmental
protection, labor and human rights toward creating asustainable, healthy society;
4. Respect the confidentiality of business partners’ information andintellectual property rights and never engage in inappropriate
or unethical acquisition or use of such information or rights;
5. Never offer business entertainment, gifts or monetarycompensation to unfairly obtain profit;
6. Fulfill our social responsibilities together with our business
partners with a shared commitment to co-existence and coprosperity.

Not received No response

Established on October 1, 2008

34 CSR Report 2012

Efforts in the Value Chain

Teaming Up with Competitors on Delivery

Raw material manufacturers(Raw materials
procurement)
Manufacturing
partners

Lion and affiliates(Manufacturing)(Distribution)

Wholesalers(Sale)
Retailers

Lion teamed up with competitors in 1989 to establish
Planet Logistics Co., Ltd., for conducting joint deliveries towholesalers. The philosophy behind joint delivery is,“Cooperate on systems, compete in the store.” Manufacturers
compete fairly in stores, but cooperate on logistics in order
to cut logistics costs, improve the quality of logistics, andaddress environmental issues. At the end of 2011, 18
manufacturers were participating in the joint deliveries.
Fixed schedules, fixed volumes, bulk delivery, orderly
systems and standardization, all achieved through jointdelivery, also lead to operational improvements andefficiencies within wholesale operations.

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

Lion’s distribution policy is founded on co-existence
and co-prosperity with wholesalers. We hold general
meetings of the “Lion-kai” forum to explain the
Company’s business, marketing, and sales strategies, aswell as through opinion exchange to promote common
awareness of one another’s roles in increasing customer
satisfaction. As of the end of 2011, 247 wholesalers weremembers of the Lion-kai.

Fair Operating
Practices

Evaluating Raw Material Suppliers from a CSR Perspective

Inspection of raw materials
suppliers

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

Lion-kai General Meeting

Respect for Intellectual Property Rights
As a basic policy related to intellectual property, Lionhas stipulated the following provision in the Action
Guideline: “We strive to create, appropriately protect,and proactively use intellectual properties, respect
intellectual property rights of others, and avoid
improper acquisition and use of the rights.”
We established a department specialized inintellectual property to check that the rights areproperly used without infringing the rights of others.

CSR Report 2012 35

Consumer
IssuesDeveloping Safe andReliable Products for
Responding to Customers’
Demands

Workshop to listen to
customer opinions

Basic Approach
Lion carries out quality assurance activities at all stages,
from the very beginning of the product creation
process until customer consumption of our products,
in order to turn out the kind of products our customer
will be satisfied with. Specifically, by identifying
key requirements for each stage of corporate
activity — product planning, product development,
manufacturing, sales, and responding to customers —we are constantly pursuing new heights of customer
satisfaction.
In product planning, valuable opinions received
from customers are fully comprehended to identify
customers’ needs. In product development, thequality of developed products is verified in respect toseven parameters such as function and performance.
Furthermore, we endeavor to provide clear, easy-toread labeling for customers.
In manufacturing, quality is managed within eachprocess, and products that have passed inspections areshipped with data identifiable for each lot, which iseffective for after-sale management.

A variety of information is relayed through explanation
about our products and providing samples to wholesalers
and retailers.

Appropriate Information Provision
In order to provide information customers need in an
unbiased and appropriate manner, we have a system
in place through which several departments check thelabeling of products and advertisements.

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

Thai

KoreanChineseLabeling of KireiKirei Hand Soap

Flow of Product Development Incorporating Customer Opinion

Customer satisfaction maximized
Customers

Management

Customer support
Developing safe, high-quality products
1 Product planning

2 Product development

3 Manufacturing

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

Quality objectives aretranslated into technicalparameters as quality of design.
The product is developed.

Raw materials and processes
are managed to leadmanufacture of productswith consistent quality.

Product information iscommunicated in an accessible
manner to ensure knowledge
about features and usage.

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

36 CSR Report 2012

Developing of Safe, High-Quality Products

1

Product
planning

Designing products that will give customers greater satisfaction
Analysis/deliberation

Customer
opinions

Discussion/approval
Product Planning Meeting

Preparingproduct
proposalsMarketing research

Executive Committee

・Marketing
research findings

Marketanalysis・Concept

Customer
research

2

Planning
proposals

・Target quality level

Product
development

Building safety and quality into products

Deliberation oncontents and containers
Verification of quality

Outcome of development isapproved after discussion

Deliberation on andchecking of labeling

Production Engineering Meeting

Seven Parameters❶ Function/Performance❷ Usability❸ Safety❹ Product stability❺ Environmental friendliness❻ Appearance (including design)❼ Compliance with laws andOutcome of development is approved after discussion.

Product Planning Meeting
Commercialization of product is approved after discussion.

Executive Committee

self-imposed standards

Commercialization of product is finalized.

Quality Verification Meeting
When starting development, the suitability On completion, the suitabilityof quality objectives and matters deemedof the developed product is
crucial to development are verified.
verified.

Process Safety
Verification Meeting
Safety assurances for manufacturing
processes are verified.

3 Manufacturing Verifying quality in mass production
Manufacturing

Verification of raw
material quality

Quality evaluation intrial manufacturing
Verification of marketability

4 Sales

Providing information on product quality
Information is provided to wholesalers
and retailers to ensure communicationof product features and usage tocustomers.

Quality is managed in each process.

Storage (shipment)

Products are managed to ensure freshness.

Consumer Issues

Preparations

Information on products ismade available via displays,
samples, and newspapers,
television and other media.

CSR Report 2012 37

Consumer Issues

Approach to Safety and Reliability
Lion evaluates the safety of raw materials and safety
during product use to ensure customer peace of mind.

Safety of Raw Materials
Use of raw materials is determined only after verifying
safety, and only after implementing sample evaluationand supplier survey in order to ensure specific quality.
Before use, raw materials undergo quality inspections
using parameters and testing methods according
to category — drugs and food; quasi-drugs andcosmetics; or miscellaneous.

Responding to VOC
VOC* from our customers is recorded in a privacyprotected database, and after personal information isremoved is then made available to the entire company
via an information sharing system in order to make
improvements and develop new products.
VOC deemed to have an especially strong influenceon customer satisfaction is reported to management
as a VOC daily letter, where planning divisions headefforts to improve quality through quick deliberationand implementation of solutions. In January 2011, 240
VOC daily letters were issued.
* VOC
Voice of Customer

Reply
ActionVOCdaily letter

Directors,
Corporate Auditors,
Executive Officers

VOC
meeting

Entire company

Database

Information
sharing system

Product development and improvement

Inquiries
Comments
Requests

Customer Support

Considering our customers’ various usage styles as wellas our frail customers, Lion conducts safety evaluationsof products based on a policy of averting risk throughproduct design.
Evaluations check sheets are employed to confirm
whether safety has been achieved through productdesign, ranging from “normal use” cases to “mistakenuse” cases. Even for “irregular use” cases, we evaluate
whether risk has been minimized and whether the risk
is acceptable. The evaluation results are reflected in
product safety, for example with inclusion of sufficientwarnings on labels where necessary.

Customers

Flow of Response to Customers

Safety During Product Use

Flow of 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 Safety
Assurance

Guidance and advice from standpoints envisaging
various usage situations are provided through our
Quality Verification Meetings, comprising membersof other different divisions. The aim is to prevent
damage caused by product use and lapses in the safety
confirmation process.
In preparation for occurrence in the event of producttrouble, we have in place an internal system to quickly
take countermeasures such as product recall.

38 CSR Report 2012

Overview of Inquiries and Complaints
During 2011
Around 96,000 inquiries and complaints were received
in 2011 (a 5% increase from 2010). Overall, 82%
were inquiries about product usage, outlets selling Lion
products, product safety and so on; 10% were productcomplaints, relating for example to dissatisfaction witheffects after use or flavor and scent; 8% were related
to product problems, such as damage to flooringcaused by detergent.
In January 2011, a toll-free consultation line was
opened. As more products indicating the toll-freenumber of the consultation line are launched into themarket, the rate of inquiries and complaints received
through the toll-free line has increased, accounting
for about 40% of all consultation through telephone
in December 2011. We will make efforts for creating
the environment in which customers feel easy about
consulting. The number to call can be found on Lion’s
website.
*List of Inquiries
   URL http://www.lion.co.jp/ja/support/contact/

Lion is working to foster a corporate culture whereby
all employees, not just product development personnel,
consider and act upon customer perspectives. In 2011, forthe purpose of learning the importance of thinking from
customer’s perspective, newly-appointed directors and midcareer researchers who also conducted this on an ongoingbasis from the previous year, fielded telephone calls from
customers, and promoted employee discussion based on
the customer consultation as part of an exercise. Customer
opinions are reported at regular meetings of individual
departments in an effort to share information.
We will press ahead with efforts to change the awarenessof employees in order to deliver products and services createdfrom a customer’s perspective.

Ensuring Satisfaction with Customer Support
Measure 1

Improvement of Online
Customer Support

In the questionnaire survey on Lion’s website conducted in
2010, we received many opinions, including that customers
found it is difficult to find information they want to know.
Therefore, we modified our website design, for example, bydisplaying photos of our major products as an icon on links to
Q&A sections. Taking into account our customer opinions, wewill strive to make a further user-friendly website.
Measure 2 Implementation of a questionnaire

on employee’s communication skills

In order to know the extent to which our customers are
satisfied with our way to address their queries or feedback, we
conducted a questionnaire survey for about 300 customers
who contacted us during 2011. As a result, it was revealed thatmany customers highly evaluated our service. We will makeefforts for fostering personnel who can accurately understandthe problems that our customers have, and offer accurate andsatisfactory responses by implementing training to enhance
our communication skills and knowledge of products.

Recall Status for Varsan Hyosatsu Jet Spray
Voluntary recalls of Varsan Hyosatsu Jet Spray for
Flying Bugs and Varsan Hyosatsu Jet Spray for
Creeping Bugs have been implemented since August27, 2007, in response to combustion incidents.
As of March 31, 2012, the rate of recalled products
was 45.7%, or 1.48 million products. Please makesure to return these products if you have any.
Contact number for Varsan Hyosatsu Jet Sprayreturns: Toll-free
Phone : 0120-670-225 (in Japanese only)
Hours : 9 a.m. to 5 p.m. (except Saturdays, Sundays and public holidays)

Improvement Case Based on Customer Opinion
Modifying directions for use of insecticide Varsan
As it was difficult to understand contents of directions for use printed
on the package and attached document, many customers madeinquiries about how to use the insecticide. In response to customer
opinion, we modified the directions for use, enlarging a space andfonts for directions, and including pictures and illustrations.
Existing productProduct released in 2012

*Casting customer opinions into shape
  URL http://www.lion.co.jp/ja/support/voice/

Information Security
Lion has established a number of guidelines and regulations
to prevent information leaks. They are a basic policy of
our information management, information management
regulations, privacy regulations, information security regulations,and guidelines for management of information technology andequipment. Employees also undergo e-learning programs eachyear to enhance their awareness for the prevention of leaks.

Privacy Protection
Lion has established a privacy policy* and specific guidelines
for management of personal information in accordance withJapan’s Act on the Protection of Personal Information enacted
in April 2003. The Company has been implementing these ina proper manner while pushing ahead with the establishmentof related in-house systems and education programs.
*Privacy Policy
  URL http://www.lion.co.jp/pp.htm

Enhancing Information Provision to Customers
In order to support our customers’ healthy and comfortable
life, through Lion’s website and other tools we provide lifestylerelated information as well as information about how to use
our products. To enhance our initiatives, in August 2011, weestablished the Lion Comfortable Lifestyle Laboratories, a new
point of contact for lifestyle-related information. In addition, we
appointed four Meisters of Dairy Life, who create, accumulate
and provide information using their expertise about oral care,health care, laundry and cleaning.
We published two issues of ourKurashi Kaiteki Book including our
information on oral care, as wellas our know-how of laundry andcleaning, which the Laboratory“Kurashi Kaiteki Book”
cooperated to plan and supervise.

Consumer Issues

Fostering a Culture of Utilizing Customer Opinion

CSR Report 2012 39

Consumer Issues

Considering the Environment from a Product-Oriented Perspective
Lion established the Lion Eco Standards toquantitatively assess our environmental impacts ateach stage from the procurement of raw materials
to the disposal of products, from the Life Cycle
Assessment (LCA) perspective. The Standards define
an “eco-friendly product” as a product that satisfied
the criteria of at least one area of evaluation based ona quantitative assessment of environmental impact in
the following stages: (1) raw material procurement; (2)packaging material procurement; (3) manufacturing;(4) logistics; (5) household use; and (6) disposal. In
this way, Lion develops products, considering theenvironment in terms of both product composition(contents), as well as containers and packaging.
In order to lower as much as feasible the impact of
products on the global environment throughout their
entire life cycle, Lion is earnestly committed to thedevelopment of eco-friendly products.

Areas and Criteria of evaluation for the Lion Eco Standards

Stage

Evaluation area

Evaluation criteria

Raw material
procurement

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

Packaging
2 material
procurement

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

3 Manufacturing

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

1● Biodiversity-conscious materials are used.

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

● Used amounts of energy, water, and chemicals, and discharge of drainage and waste volume during

manufacturing are reduced 20% or more compared with those of existing products.

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

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

5 Household use

6 Disposal

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

Logistics

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

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

*The Lion Eco Standards does not require such points that materials do not contain hazardous chemicals or they have good biodegradability because these matters
are obvious, minimum requirements.

Percentage of Products Satisfying the Lion Eco Standards
The number of products manufactured by Lion (excluding
pharmaceuticals) satisfying criteria for at least one Lion Eco
Standards area of evaluation is rising steadily. This currently
applies to 66% of all items, or 82% in terms of sales value.
Eco-Friendly Product Ratio and Percentage of Sales
（%）
100
80

83

81

80

82

82

59

60

63

63

66

2008

2009

2010

2011 (year)

71

60
40

55

20
0

2006

％ of sales

40 CSR Report 20122007

％ of products

Environmental Considerations in
Product Composition Development
Lion is promoting development of product componentsthat meet environmental challenges such as global warming
prevention with the use of plant materials, and water
environment protection by using biodegradable materials
and reducing water usage each time. Prime examples of thisapproach are the development of methyl ester sulfonate(MES) and methyl ester ethoxylate (MEE).
For related information, see p.31

Lion was the first in the world to carry out the industrial
production of MES, which is used in TOP Platinum Clear andother Lion powdered laundry detergents.
MEE, which even in small amounts has high detergency, isused in TOP NANOX and other liquid laundry detergents.
* Environmental Considerations in Product Composition Development
  URL http://www.lion.co.jp/ja/csr/env/composition/

“3Rs” for Reducing Containers andPackaging
Lion actively promotes implementation of the “3Rs” (Reduce,
Reuse, Recycle) as a container and packaging material
reduction initiative.
The Lion Eco Standards provide for container and packaging
reductions, prescribing related criteria under stages
packaging material procurement, logistics and disposal.
Container and Packaging Material Usage by Lion
total
70,212901

60,00067,720567

9,485

11,14016,50564,642486
9,789

60,841

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

57,817

472

440

8,252

7,678

Metal
Glass

15,283

13,533

11,70010,147

Paperboard

26,072

25,53824,83824,412

Corrugated

40,000Refill products
28,794fiberboard

20,0000Expanding the range of refill products

Plastic

14,527

14,65815,296

15,57915,139

2007

2008

2009

2010

2011 (year)

ReduceRecycleUse of recycled materials
Use of recycled resins

Smaller Products and Innovations inContainer Design
Lion is working to reduce container and packaging
material usage by increasing the concentration of
products such as laundry detergents, dishwashingdetergents and fabric softeners, as well as by making
containers smaller.
In 2011, total container and packaging material
usage decreased by 3,024 tons to 57,817 tons due toa reduction in usage of all materials.
Lion will continue efforts to reduce container andpackaging material usage through making smaller
products and innovative container designs.
Making Products Smaller

Higher concentrations enable
smaller containers

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

Product containers made using recycled PET resin

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

Consumer Issues(tons)
80,000

Reuse

Halves the amount used
Same number of wash
cycles
Earlier productContainer weight 118g

TOP NANOX

76g
Product containers made using recycled pulp

CSR Report 2012 41

Community Involvement
and Development

Bettering Society andLifestyles in Local
Communities throughHealth, Comfort and theEnvironment

Summer program for elementary school students
at Lion Headquarters

Basic Approach
Lion’s central business themes — health, comfort and theenvironment — are also the foundation for the Company’ssocial contribution activities. We conduct activities ineach area, placing importance on cultivating a mentality
among our employees of wanting to get involved. Muchenergy is directed towards communication and education
about oral care, as has been the case since the Company’s
founding, as well as towards conservation of the water
environment. These efforts are directly related to ourbusiness activities.

to society in the front line of oral health, leading toa better quality of life for all people, by maintaining
and improving the dental and oral health of ordinary
citizens through the below-mentioned three projects,
in cooperation with dental associations, universities,
government authorities and other parties. Lion has
provided full support for these activities.

Three LDH Projects
１．Oral health promotion projects

・Activities to promote and provide education
about oral health for all life stages

２．Research and investigative projects

Activities of Lion Foundation for
Dental Health
Under the consistent philosophy of “returning benefits
from corporate activities to society” since its founding,Lion has been conducting oral care promotion andeducation activities since 1913. The Lion Foundation for
Dental Health (LDH) was founded in 1964 under theapproval of the Ministry of Health and Welfare, and wasrecognized as a public interest incorporated foundation by
the Cabinet Office in 2010. LDH continues to contribute・Investigating and studying the importanceof oral health in preparation for an increasein healthy life expectancy*, and providing
information on findings obtained throughindividual projects and activities to experts andconsumers.
３．Educational and training projects
・Providing a variety of seminars and lectures forhealth supervisors and dental experts* Refers to the period in people’s lives when they can care forthemselves without nursing assistance.

Development of Projects Responding to All Life Stages
AgeLife Stage

Birth
Fetal stage

5
Infancy

10
School age

15
Adolescence

20

30
Young
adulthood40

50

Oral health activities for school children

Oral health activities for the disabled
Oral health activities for the local communities
Dissemination of oral health care information
Development and distribution of oral health educational materials

Research andinvestigative projects

Health informatics and research activities/ Clinical research activities in preventive dentistry

Educational andtraining projects

Providing seminars and lectures for health supervisors and dental experts

42 CSR Report 2012

70

80

Old age

Oral health activities for adults (Occupational health)

Oral health activities for mothers and children

Oral healthpromotion projects

60

Middle andlate adulthood

Oral health activities
for the elderly

Oral Health Event of Tooth Brushing for children

Academic Contribution

With the aim of fostering school children’s awarenessof health, including the importance of dental and oral
health, as well as tooth brushing, the Oral Health Eventof Tooth Brushing for children which has been ongoingsince 1932, is held in Tokyo every year during Japan’s
Dental Health Week (June 4 to 10).
In 2011, a live Internet video stream of the 68th
Oral Health Event of Tooth Brushing for children was
broadcast to a total of 315 elementary schools in 39
Prefectures nationwide as well as other Asian countries(Korea, Hong Kong and Singapore) from the main
venue at Ryogoku Kokugikan. Approx. 22,000 school
children participated in the event. In Korea, 7 schools
with approx. 1,700 participants took part in thisinternational event together simultaneous interpreters.

A research paper on the link between periodontal
diseases and metabolic syndrome won the clinicalresearch award of the American Academy of
Periodontology (AAP), which was jointly researchedby LDH, Nihon University School of Dentistry, theGraduate School of Medical and Dental Sciencesof Tokyo Medical and Dental University, and Lion.
They are the first winners of this award from Japan,
and their unique method of shedding light on thefact that people suffering periodontal diseases are
more predisposed to metabolic syndrome was highly
evaluated. LDH intend to promote studies which canmake academic and social contributions.

Commemorative photo of prize
winners, Prof. Maeno of Nihon
University and Ms. Morita, LDH
Researcher, with Mr. Donald,chairman of the AAP

The stage ofmain venue at
Kokugikan* Literature presented at academic meetings and published inmagazines
URL http://www.lion-dent-health.or.jp/library/list.htm

Selected Social Contribution Activities
by LDH (2011)
Oral health activities for mothers and children
LDH supports child-rearing through oral healthactivities for expectant mothers, infants,
kindergarteners and their parents.
184 locations, 188 occasions
Participants: 6,879 small children,
2,599 parents/guardians

Overseas Activities
Information concerning the importance of dental andoral health and tooth brushing is needed by people allover the world. LDH hopes to share its long-cultivatedoral health activity programs and teaching expertisewith people in Japan and overseas. In proactive
cooperation with dental experts mainly in South East
Asian countries, LDH intends to globally work on andcontribute to improvement in oral health.

Oral health activities for school children
LDH provides direct guidance activities forschoolchildren and their parents/guardians, andsupports the activities of health supervisors.
422 locations, 530 occasions
Participants: 40,808 school children,1,217 parents/
guardians, and 4,549 health supervisors

Oral health activities for adults(Occupational health)
Advice is provided to workers, principally relating toperiodontal disease prevention and oral health care andpromotion.
270 offices, 559 events
Recipients: 31,961

Oral health activities for the elderly
LDH provides support for maintenance of oral
functions so the elderly can maintain their own teeth.
57 locations, 62 events
Participants: 843

Examination and Treatment
Explaining LDH
activities at the 6th
Asian Conference ofOral Health Promotion
for School Children in
Hanoi

Highly specialized and high quality examinations,
treatments and preventive dentistry activities areprovided in line with the concept of risk control
dentistry.
Recipients:11,792

Community
Involvement andDevelopment

Online class at elementary schoolin Korea

CSR Report 2012 43

Community
Involvement andDevelopment

Protection of Water Resources
Lion is inherently linked to water through delivering various kinds ofdetergent products, hence we have a responsibility to protect thewater environment, for example through environmental considerationin our products. Particular initiatives we focus on are the promotionof the use of rainwater — a water resource we are all familiar with— and forest maintenance activities at the Lion Forest in Yamanashi,
which plays a major role in the protection of water resources.

Support for the Promotion of Rainwater Harvesting
The world’s water environments have become threatened, with
regions across the globe frequently experiencing either flooding or
drought. Lion is promoting the use of rainwater as a solution thatwill take us closer to a water-recycling society.
Sumida Ward in Tokyo, where Lion Headquarters is located,
is leading the way in sky water harvesting with facilities like the
Kokugikan (sumo wrestling arena) making use of rainwater. Lionalso works with the Sumida Ward-based NPO People for Rainwaterto promote rainwater use. Lion facilities — the headquarters
building, the Hirai Office, and the Lion Eco Chemicals Sdn. Bhd.
in Malaysia — use rainwater for gardening watering and flushing
toilets, as well as for cooling water for plants.
Furthermore, Lion supports promotion of rainwater harvesting
through various activities such as sponsorship of "Rainwater
Network Japan's national conference*."*Rainwater Network Japan
An organization consisting of citizens, government, corporations and researcherswhich conduct activities aiming to achieve a society in which rainwater is recycled.

Donating Rainwater Tanks to All Public Elementary Schools
and Kindergartens in Fukushima Ward, Osaka City

2011 Rainwater Utilization Idea Contest
Aiming at diffusion of rainwater utilization amongchildren nationwide, we held the 2011 Rainwater
Utilization Idea Contest for junior high and elementary
school students. The contest consisted of four categories:
posters or paintings, essays or reports, research projects
and slogans, with 6,099 entries in total. In January andFebruary 2012, the school incentive award was presented
respectively to an elementary school and a junior highschool which sent many excellent works to the contest.
In May and June 2012, the commendation ceremony
and the exhibition were held for five grand prix winningworks and 17 excellence award winning works at Tokyo
Skytree and Tokyo Skytree Town which are facilities
making use of rainwater.

The grand prix winning works in the “poster/painting” category(from left)“Rain drop cycle” by Hibiki Furuta in Shizuoka Prefecture,“Playing with water” by Riku Iwamoto in Nagasaki
Prefecture

As we believe that teaching children about importance ofrainwater harvesting will lead to an improvement of future water
environment, the Environmental Conservation Section of Osaka
Prefecture, Kansai People for Rainwater, and Lion jointly donated
two rainwater tanks each to all 9 public elementary schools and 3
kindergartens in Fukushima Ward, Osaka City, where Lion Osaka
Office is located. At the same time, environmental learning classes
with skits were implemented to teach children about importanceof water.
In May, Osaka City offereda letter of appreciation to
us during the presentation
ceremony at Osaka City Hall.
Children watering from rainwater tanks

The school incentive award presentation ceremony(above) Shonan Shirayuri Gakuen Elementary School(below) Ritsumeikan Uji Junior High School
Environmental learning class

44 CSR Report 2012

Presentation ceremony for rainwater tanks(from left) Mr. Nagai, Superintendent of
Education of Osaka City andPresident Fujishige (current
Chairman)* Ame no Megumi Hiroba
URL http://www.lion.co.jp/ja/csr/social/rain/Major Social Contribution Activities(2011)

Lion Forest in Yamanashi
Since 2006, Lion has regarded the Lion Forest in
Yamanashi as a field for raising environmental
awareness among employees, and we have conducted
forest maintenance activities with the aim of protecting
water sources, absorbing CO2, preserving biodiversity,and revitalizing local communities. In 2011, a total of 55
employees and interested parties voluntarily participatedin three forest maintenance activities. Moreover, 24
persons participated in two wildlife surveys.
In March 2012, recognized for the forest maintenanceactivities resulting in 16.1 tons of CO2 absorbed during
2011, Lion received a forest development and CO2
absorption certificate from Yamanashi Prefecture.

・Presented the Best Student Poster Presentation Award(Lion Award) at Japan Society on Water Environment(JSWE) annual conference・Presented the Lion Awards,
which support association
activities relating to preventive
dentistry and developmentof young researchers (March,
September, October andNovember)March・Sponsored 13th Japan Water Award

June

・Implemented the Sumida
River Fireworks Project,inviting evacuatees inTokyo from the disasterhit areas in Tohoku
region to watch Sumida
River Fireworks Festival

Donated planters madeof timbers from forest
thinning in Yamanashi toresidents of temporary
housing units in
Kesennuma City hit byearthquake in 2011
* Lion Forest in Yamanashi
URL http://www.lion.co.jp/ja/csr/social/forest/

・Provided support for Rainwater Network Japan’s national
conference

Activities Through Products
Lion has conducted the Lion TOP Eco Project as an
initiative for water environmental conservation throughits TOP laundry detergent. In 2008, we started theJapan Clean Water Foundation Campaign to support
river protection activities, whereby we donate ¥1 forevery product of TOP Platinum Clear sold to schools
and citizen groups through the Japan River Association.
In 2011, the fourth year, we donated ¥10,232,720.
In addition, aiming at having children think about
the water environment surrounding them, we held the“Future river picture diary contest for kids and parents
event.” From among 1,070 entries, 10 works wereselected for the Seiryu Boken Juku Award, and 10
works for the Future River Award.
Ten children who won the Seiryu Boken Juku Award
were invited, accompanied by a parent, to the TOP
Seiryu Boken Juku 2011, a program to experience thewildness at a river in Okinawa prefecture, where theylearned the importance of the water environment
including rivers and the sea.

August・Held science education
program for elementary
school students in
Edogawa Ward, Tokyo
・Held lessons during
summer holidays toteach elementary school
students and parents
living in vicinity of Tokyo
and Osaka facilities
about hand washing,
tooth brushing andgargling (Held also
during spring holidays
during March in Osaka)・Contributed to thedevelopment of thenext generation throughsupport for the
December“Dream class trip”charity
baseball event for kids
(Children’s Dream Fund)

Plant

Activities of NPO Tsurumi River
Basin Networking which donatedthrough our Campaign

TOP Seiryu Boken Juku 2011

Chiba

OdawaraOsaka

AkashiNumber of tours

59

128

64

58

Total
309

Participants

1,041

2,153

1,900

2,024

7,118

Community
Involvement andDevelopment

Plant Tours in 2011

CSR Report 2012 45

Third-Party
Review
I will make third party comments about “CSR Report 2012”(hereinafter referred to as “the CSR Report”）of the LionGroup, after reading the CSR Report. For this purpose,
I visited Hirai Office Communication Center and R&D
Headquarters of Lion Corporation, and received explanations
about Lion’s CSR initiatives from a manager of CSR
Promotion Department.
The CSR Report was compiled in accordance with theglobal standards of ISO26000 (social responsibility), in
addition to the Environmental
Reporting Guidelines and the
GRI Guideline to which theLion Group has conventionallyreferred. As a result, contents
are better organized, enlarged,
and improved as stated below.
1. CSR of the Lion GroupAt the beginning of the CSR Report, we show our overall
image of our CSR activities, under the basic idea of
performing CSR activities on the basis of our Company
Motto and Management Philosophy, which is theCompany’s founding spirit, in order to contribute to therealization of a healthy and comfortable life. Especially, ourCSR activities, which extensively involve the entire supply
chain from business partners, use by consumers, throughenvironmental impacts after use of products can be highly
evaluated. I believe that statements about initiatives will
be more objective by setting clear goals and showing
quantitative data.
Although information only about domestic Lion groupcompanies is disclosed in the CSR Report, I think it will be
preferable to include overseas affiliated companies especiallyin Thai, Korea, and China, which are growing in businessperformance.
2. Organizational GovernanceIn relation to Organizational Governance, as the CSR Reportrespectively explains about frameworks, risk management
and internal control, it is easy to understand Lion’s initiatives.
I believe that easy-to-understand explanations will be
provided especially in terms of a relationship between
each initiative, as well as corporate objectives and social
responsibility.
3. Human rights/Labor practices

The most important business resource to achieve
management objectives is employees. In order to effectively
utilize them, it is necessary to create working environments
in which each employee can make the maximum use of
his or her ability. The Lion Group indicated how much suchbasic ideas have been put into practice with time-series
data, so that its activities can be easily understood. I hope

46 CSR Report 2012that such data will be further enhanced and expanded foreasy-to-understand commentaries.
4. The environment

Aiming at being a leading company in environmental
friendliness, the Lion Group has been committed to reducing
environmental impacts throughout the supply chain.
This can be understood by seeing environmental targets
and their achievements in activities to reduce CO2 emissions
and achieve zero emission status. In 2011, CO 2 emissions
in business activities were reduced 35% compared to the1990 level, achieving a high target of 30% reduction a year
ahead of schedule. While overseas business locations haveconducted activities setting goals, I expect them to makeefforts for attaining a reduction in CO2 emission closer to thedomestic goals.
Although it was stated that Lion reduces CO2 by shifting
product materials derived from petroleum to plants,
simultaneously considering biodiversity, there are problems
such as destruction of nature through developing firms
in a country of origin. Therefore, it is necessary to obtaincustomer’s understanding over environments with easyto-understand explanations about efforts for naturalconservation.
It is also notably appreciated that Lion sufficiently considers
and deliberates the safety of its products in use by
consumers. Consumers may use products in the wrong or
abnormal way. However, safety is ensured even in the caseof improper use. Furthermore, it can be seen that positiveefforts are made to reduce risks in abnormal use beyond theconventional wisdom.
Furthermore, it can be highly appreciated that Lion has
conducted various social contribution activities, taking
advantage of the Group’s strength, for example, support for
the areas impacted by the disaster and activities through theFoundation.
According to a survey conducted by Japan Institute forSocial and Economic Affairs, when assessing companies,
consumers regard corporate websites and CSR reports as
the most reliable information. I believe that, in order to winsocial trust, it is the best way for the Lion Group to disclose
information on initiatives for fulfilling social responsibility,
their results and effects in a transparent and easy-tounderstand manner.
*The comments do not express and assure opinions on accuracy andcompleteness of contents stated in the CSR Report.

Yoshito Nakamura

Professor, Faculty of Business Administrationof Toyo University
Certified Public Accountant
Auditor of the Supporting Organization of JOCV
Chairman,Committee for Office Security Mark Certification System,
New Office Promotion Association
Auditor of the Kawasaki City Council of Social Welfare
Member of Evaluation Committee for Independent Administrative
Institutions,Japanese Ministry of Defense

Lion’s
Responses
Founded in 1891, Lion has been committed to
management which is strongly conscious about
contribution to society, under the Company
Motto, “Fulfilling a Spirit of Love.” Supported by all
stakeholders, Lion Marked its 120th anniversary in
October 2011, and simultaneously formulated a newcorporate message , “Supporting cleanliness, healthand comfort, while protecting our global environment.
This is our mission, one in which we take pride.” This ispart of the corporate message, which exactly expresses
the reason for our existence.
In order to make CSR activities more systematic andstrategic, the CSR promotion division has become
headed directly by the President in 2012. We areaiming at establishing a framework in which progress
management will be possible by using ISO26000
and reorganizing issues and goals by core subject. As
a progress report on those efforts, the CSR Report,
which had been conventionally compiled with themes
by stakeholder, focused on core subjects of ISO26000.
In the Third Party Review, it was appreciated that
Lion has made sincere efforts as a consumer goods
manufacturer for ensuring the safety of product use bycustomers. As an environmental effort, we achieved

our CO 2 emissions reduction target a year ahead ofschedule. Admittedly, however, I think we shouldmake efforts for providing information to consumers
in easy-to-understand manners as a leading company
in environmental friendliness. It is also necessary foroverseas group companies to gradually advancetheir activities and aim towards higher goals. Lion
will steadily work on the Group-wide CSR activities
including the supply chain, which are indicated in
ISO26000.
I believe that Lion’s mission is to help people makegood habits, and to resolve new social issues
accompanying social changes through our businessactivities. Disclosing information on Lion’s CSR
initiatives through CSR Reports and our website inorder to facilitate dialogue with stakeholders, Lion will
fulfill responsibilities appropriate to the needs of thetimes.

Itsuo Hama
Representative Director
and President

Editorial Note
Since 2011, Lion has systematized its CSR
activities in accordance with ISO26000, with
the CSR Report was compiled following it. As
with existing CSR Reports, we aim to provide
an easy-to-read report.
This year, the topic “Responses to the Great
East Japan Earthquake” is featured in ourreport. Wishing for the earliest reconstructionof the devastated areas, we are presently
continuing our on-site activities to support thereconstruction.
In 2011, Lion formulated a new management
vision, Vision 2020, and decided upon a newcorporate slogan of: life. love. Lion. Clarifying
the entire image of Lion’s CSR activities withthe aim of being a “Company that Creates
Value for Lifestyle and Spiritual Fulfillment”
by supporting cleanliness, health and comfort
while protecting our global environment, we
intend to proactively disclose information
through CSR reports.

CSR Report 2012 47

Corporate Message

For 120 years, we have engaged in business closely related to people s living.
In due course, we learned that the essence of happiness is to live fulfilling everyday
lives and to cultivate a positive attitude.
An accumulation of todays becomes your entire life, and a part of your life happens today.
Therefore, we believe that valuing each day of each person leads to valuing his or her life.
Lion s role is to provide support for this kind of daily living. Under these ideas,
we prepared our corporate message, resolving to continue to make new proposals toward
our customers valuable futures.
Published : November 15, 2012
Inquiries : CSR Promotion Department, Lion Corporation
3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan
Tel: +81-3-3621-6611
Fax: +81-3-3621-6269
Website: http://www.lion.co.jp/en/
Next scheduled publication :November 2013

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