CSR Report

2016Love today,Love your life.

CONTENTS
01

About Lion

04

Message from the Management

06

Company Motto/Management Philosophy/
Lion Group Charter for Corporate Behavior

07

Lion’s CSR
08 Overview of Lion’s Social and Environmental Contribution Activities

09 Thoughts Reflected in Corporate Message
10 History of Lion Group’s Business Activities
12 Establishing the Group-wide CSRManagement Structure

26
29[Editorial Policy for CSR Report 2016]● Since 2011, our CSR activities have been systematized in accordance with ISO 26000, an international standard concerning social responsibility. The CSR Report and the CSR
website also reflect the above.
● The Report discloses the major CSR issues and their progressin 2015 towards the 2017 Medium-term Objectives corresponding to the Lion’s management plan.
● Details of the activities that have especially demonstrated
progress are provided as 2015 Highlights.

2015 Highlight 01● At the bottom of the pages on each core subject of ISO26000,
the URLs of the CSR website that includes details of the activities are given.

Lion Group Educational Activities for
Oral Health in Japan and Overseas
24

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

14 Objectives of the Medium-Term Man-

agement Plan and Achievements in2015 in Relation to CSR Material Issues

18

Editorial Policy

2015 Highlight 02● The URLs of Lion’s primary web pages have been made into
two-dimensional bar codes (smartphone-friendly website)
so that the readers can more easily access to the pages.

Promotion of Toothbrush Recycling Program (Educational Activities● A third-party review by outside expert has been included toprovide an objective assessment.

for Environmental Awareness)● Information on standard disclosure items as required by the
GRI Sustainability Reporting Guidelines is provided.

Organizational Governance

Human Rights[Reference Guidelines]● The Environmental Reporting Guidelines (2012) of theJapanese Ministry of the Environment● G4 Sustainability Reporting Guidelines of the Global Reporting Initiative

30

Labor Practices

34

The Environment

40

Fair Operating Practices

42

Consumer Issues● ISO 26000:2010 Guidance on social responsibility issued by
the Japanese Standards Association[Comparative Table with Respective Guidelines]
URL http://www.lion.co.jp/en/csr/report/[Coverage]● Lion Corporation and all domestic consolidated subsidiaries
are covered, as a rule.
Overseas group companies are included in the CSR Medium-term Objectives and Achievements on p14-17.

*When the coverage of reported activities and data is different, a descrip-

47

Community Involvement
and Development

50

Third-Party Review

51

Lion’s Response/Editorial Note

CSR Report 2016tion is provided.

[Period Covered]● January 1 to December 31, 2015
(Some parts of the activities include those of 2016.)

About Lion
Corporate Data
Corporate Name
Address
Foundation Date
CapitalRepresentative

Performance Transition(consolidated)

Lion Corporation
3-7, Honjo 1-chome, Sumida-ku, Tokyo
130-8644, Japan
October 30, 1891

(million yen)
（百万円）
400,000¥34,433.72 million (as of December 31, 2015)

350,000

Itsuo Hama, Representative Director/President

Employees

Consolidated: 6,816
Non-consolidated: 2,467 (as of December 31, 2015)

Net Sales

Consolidated: ¥378,659 million
Non-consolidated: ¥253,887 million (as of December 2015)

PlantsChiba Plant (Ichihara City), Odawara Plant (Odawara City),
Osaka Plant (Sakai City), Akashi Plant (Akashi City)

Research
Facilities

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

Sales Offices

Net Sales

Sapporo, Sendai, Tokyo, Nagoya, Osaka, Fukuoka[List of Major Subsidiaries and Affiliates]
URL http://www.lion.co.jp/en/company/html/com0301f.htm

327,500

335,171¥273,486 million

Consumer Products Business¥59,414 million¥19,885 million¥77,985 million¥20,971 million¥38,754 million¥56,475 million

Oral Care Products
Beauty Care Products
Fabric Care Products
Living Care Products
Pharmaceutical Products
Other Products
Industrial Products Business
Overseas Business

250,000
200,000
150,000
100,000
50,000
0

2011

2012

16,37415,000¥378,659 million

Consolidated Net Sales*Intra-segment and inter-segment sales

Location of Overseas Group Companies
Overseas sales
compared to previous year: 115%
Hong Kong(Lion Corporation (Hong Kong) Ltd.)
Thailand(Lion Corporation (Thailand) Ltd.)
Malaysia(Southern Lion Sdn. Bhd.)
Malaysia(Lion Eco Chemicals Sdn. Bhd.)
Singapore(Lion Corporation(Singapore) Pte. Ltd.)

Ratio of
Overseas sales (consolidated): 25%
China (Lion Daily Necessities
Chemicals (Qingdao) Co., Ltd.)South Korea(CJ Lion Corporation)

5,000
0

2012

2013

(year)
2015（年）

2014

Ordinary Income
18,09916,00012,00014,05912,30012,183
8,564

8,000
6,000
4,000
2,000
0

2011

2012

2013

2014

(year)
2015（年）Net Income(million yen)
（百万円）
12,00010,68010,000
8,000

7,368
6,097

6,000
4,000

Taiwan (Lion Home
Products (Taiwan) Co., Ltd.)

2,000
0

Indonesia (P.T. Lion Wings)

2011(million yen)
（百万円）
18,000

Taiwan (Lion Chemical
Industry (Taiwan) Co., Ltd.)

Philippines(Peerless Lion Corporation)

12,406

7,213

10,000¥82,176 million

10,81910,000¥102,077 million

Adjustment*(year)
2015（年）

2014

Operating Income

14,000¥29,166 million

2013(million yen)
（百万円）
20,000¥56,104 million

Other378,659

367,396

300,000

11,169Net Sales Breakdown by Business

352,005

4,077

4,235

2011

2012

2013

2014

(year)
2015（年）[IR Library]
URL http://www.lion.co.jp/en/invest/html/
inv0300f.htm

CSR Report 201601

About Lion

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

Oral Care[Main Products] Toothpastes, toothbrushes, dental rinses and other dental care products, etc.

Lion provides products for advanced oral care to support daily health.

Beauty Care

[Main Products] Shampoos, conditioners, hair-nourishing treatments, hand soaps, bodywashes, men's cosmetics, antiperspirants and deodorants, etc.

Lion promotes comfort, health and wellbeing through its hair and skin care products.

Fabric Care

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

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

Living Care

[Main Products] Dishwashing detergents, household cleaners, cooking-aid products, etc.

Lion offers products that promote clean and comfortable eating and living.

02

CSR Report 2016

Pharmaceutical[Main Products] Antipyretic analgesics, antidiarrheals, gastrointestinal medicines,
eyedrops, health tonics, insecticides, etc.

Lion offers an abundant lineup of products under quality brands to meet growing
self-medication needs.

Wellness Direct[Main Products] Health food products, functional food products,
hair care products, etc.

Lion offers direct-to-consumer sales products that meet a variety of consumer health andbeauty needs.

Gift and Special Order[Main Products] Gifts, novelties, etc.

Lion provides a variety of gift and special order products for its customers.

Pet Supplies(Lion Trading Co., Ltd.)[Main Products] Sanitary products, pet oral care, body care, pet laundry care androom care products, etc.

Lion helps make the lifestyles of pet owners and their animals more enjoyable throughproducts that promote cleanliness, health and comfort.

CSR Report 201603

Message from the Management

Representative Director,
President and Executive Officer“Lion’s DNA to Benefit Society
through Business Activities”
The origins of Lion’s approach to CSR can be traced to our
founding spirit of “Benefitting Society through Business
Activities.” Since its foundation in 1891, Lion has continued to respond to social issues which have changed withthe times over 120 years.
In Japan and other Asian countries, social conditions
have been greatly and increasingly changing, including
a slowdown in economic growth and an advance in the
aging society. Amid such social changes, Lion precisely
identifies problems, achieves “changes beyond changes”
through business activities, and makes efforts for solving
the problems, because we have the DNA to do so.
In its Vision 2020, Lion clearly states that it aims tobecome a “company that creates value for lifestyle andspiritual fulfillment,” a “company that is advanced in the04

CSR Report 2016

area of environmental responsiveness” and a “company
that continues to take on challenges, create and learn.”With the company motto of “Fulfilling a Spirit of Love,”
Lion is aiming at helping to extend people’s healthy life
expectancy and realize a sound material-cycle society inwhich resources are conserved and reused, in our businessdomains of “Health,” “Comfort,” and “Environment.”
We will make efforts to further improve corporate
value as a highly reliable company capable of responding to expectations from all stakeholders. To this end, wedevelop products and provide services while putting a toppriority on customer satisfaction, promotion of environmental conservation activities, and further enhancementof corporate governance systems.

Aiming to become a company that createsvalue for lifestyle and spiritual fulfillment
In 2015, Lion continued to put on publicizing “preventive
dentistry*.”
We conducted educational activities for proper selfcare and professional care with provision of oral careproducts including highly functional toothbrushes for
self-care, oral health promotion projects for each stage inlife conducted by the Lion Foundation for Dental Health,and operation of a dental clinic exclusively for preventive
dentistry. Consequently, such activities increased recognition and awareness of “preventive dentistry.”
In the functional food labeling system that started
in April 2015, as “Lactoferrin” has first been certified
in Japan, it became easier to inform people of its highfunctionality. For industrial products, we have been pushing ahead with structural reform to create new value by
establishing a new company through integration andreorganization of chemical products business.
As for the overseas business, products for personal care,such as “Systema,” “KODOMO,” and “KireiKirei” brands,
largely grew with proactive marketing activities, as wellas educational activities for preventive dentistry and handwashing in each country.
Under the group-wide philosophy of contributing to
the formation of clean, healthy and comfortable living
habits not only in Japan but also in Asian countries, wehope to continuously help forming such living habits byconducting educational activities for oral care and handwashing, in addition to providing products.

*The idea that we should focus not on treatment after getting acavity, but on prevention before it happens.
Aiming to become a company that is advancedin the area of environmental responsivenessWith the goal of achieving a “Low Carbon Society,” a“Sound Material-Cycle Society,” and “Harmonizing with
Nature,” Lion formulated the environmental objective“Eco Vision 2020,” and has worked on it to attain the targets in 2020, including reductions in CO2 emissions andwater consumption. As for the reduction in CO2 emissions,aspiring to achieve our target in 2020, which is higher
than that of Japan set at COP 21, we have accomplished
our target of 2015. Furthermore, we have continued tosupport our customers’ ecological lifestyle by expanding
eco products fulfilling “Lion’s eco-standards” which were
voluntarily established from the viewpoint of product lifecycles. With regard to the reduction in water consumption, we have developed technology to recycle factory
effluent, and plan to largely reduce the consumption in
and after 2016.
In 2015, Lion started a program to collect used

toothbrushes and recycle them for plant pots and planters, making an alliance with TerraCycle Japan for the
first time in Asia. We hope to support activities to reduce
environmental impacts in local communities by providing
opportunities to recycle things familiar to customers. Lion
will contribute to the realization of a sustainable society
with development of advanced green technologies andthrough communication with stakeholders.

Aiming to become a company that continues
to take on challenges, create and learn
In 2015, marketing training and a cross-industrial
exchange training programs were continuously implemented in order to foster human resources who voluntarily take on challenges and create new values. The“Lion Challenge Cup-Innovation” was also introduced, inwhich Lion’s future is directly proposed to management.
In addition, we further enhanced abilities at workplaces
by introducing the “L-Compass Award,” a commendation
program for the purpose of improving organizational
learning ability with best practices shared. Meanwhile,
we considered creation of an environment to support
employees raising children and employees caring for theelderly and backed up diverse ways to work. In 2016, wehave started operating this new system.
I continued to hold the presidential sessions at Lion’s
business offices nationwide in 2015. At the meetings with
employees, I proactively shared our Management Vision,and kept discussing specific measures to achieve the vision.
Through “Lidea,” a website for lifestyle information
established in 2014, we have been providing informationthat is useful for our customers’ daily lives.
We will aim at achieving “Vision 2020” with a cycle inwhich each of our employees predicts social trends, takes
on challenges to pursue new creation, and learns something from the challenges.

Aiming at CSR Management
In order to remain a company that is trusted by society,
it is important to integrate CSR within the managerial
structure of the company. Hence, we reviewed our management challenges in light of our understanding of therequirements of society as included in the international
standard of social responsibility, ISO 26000, and identified
CSR material issues. In the on-going “Vision 2020” V-2
period, we set the Group-wide medium-term objectives
including those for overseas group companies, and are
conducting CSR activities as a whole.
In 2009, Lion announced its support for the UN Global
Compact: a global framework to realize sustainablegrowth. We will continue to support it and make efforts
toward CSR management, strongly aware of “Health,”“Comfort” and “Environment.”

CSR Report 201605

Company Motto/Management Philosophy/
Lion-Group Charter for Corporate Behavior

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

Management Philosophy
1

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

2

We respect the “Spirit of Tenacity and Creativity” that we have maintained since
our founding, 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 January 1, 2003 and amended January 1, 2008
We, the Lion Group, shall, in addition to being an economic entity designated to pursue profits through fair competition, act as a social entity that contributes to society at large. We shall respect human rights and conduct ourselveswith initiative in a socially responsible manner toward the creation of a sustainable society, observing both the spirit
as well as the letter of all applicable laws and international rules and not harming the public interest, both in Japanand abroad, in accordance with the following 10 principles.
1. [Principal Mission] We shall earn the confidence andsatisfaction of customers (consumers and users) by providing excellent, safe goods and services useful for their
daily lives.
2. [Compliance with Public Rules] We shall observe all
relevant laws and regulations and engage in fair, transparent and free competition and proper transactions.
We shall maintain sound and proper relationships withgovernmental and political bodies.
3. [Disclosure] We, as a socially open company, shall actively engage in communication not only with ourshareholders but also with members of society at large
and disclose information generally regarding Company
management in an appropriate and timely manner.
4. [Environmental Issues] We shall play a positive and active role in creating a sustainable society that harmonizes
economic development and environmental protection.
5. [Improvement of Working Environments] We shallpromote fair treatment and respect the diversity, individuality and personalities of our employees. We shall ensure a safe and comfortable workplace to realize themental and physical well-being of our employees.
6. [Contribution to Society] We shall actively contributeto society as good cooperate citizens.
7. [Opposition to Antisocial Forces] We shall firmly oppose antisocial entities and organizations threatening
the order and security of civil society.

06

CSR Report 2016

8. [Contribution in Foreign Countries] In our overseas operations, we shall not only observe international rules andthe laws of relevant foreign countries, but also respect local cultures and customs and contribute to the development of local communities with sincerity and mutual trust.
9. [Practice of Corporate Ethics] Top management shallassume responsibility for implementing the spirit of thisCharter and shall take the initiative to set a good example and fully inform Lion Group employees of the Charter. Top management shall strive to take in internal andexternal opinions continuously to promote mutual understanding and the development and implementationof effective internal control systems while enforcing
thorough compliance with corporate ethics.
10. [Resolution of Problems] Should an incident contrary
to the principles of this Charter occur, top management shall publicly clarify its position, taking responsibility to resolve the problem on its own initiative, andstrive to investigate the facts, identify the causes of theincident and prevent recurrences. Top management
shall fulfill its responsibility to disclose accurate information promptly and explain the situation, and shallresolve the problem in a manner fully understandable
to society. After clarifying authority and responsibility
for said problem, top management shall impose strict
and impartial disciplinary actions upon any liable persons, including the highest level of management.

Lion's CSR

Lion’s CSR

Business Activities Supporting Healthy andComfortable Society and Environment

Lion’s CSR

Organizational Governance

The origins of Lion’s approach to CSR can be traced to our founding spirit of “working for the benefit ofpeople and society.” With the robust business foundation established based on the Company Motto andthe Management Philosophy, Lion has contributed to sustainable development of society through conducting business activities under the management vision and by integrating CSR material issues.

Sustainable corporate andsocial development

V-3 PlanManagement Vision(Vision 2020)
Ideal Vision

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

Labor Practices

Aiming to become a company that createsvalue for lifestyle and spiritual fulfillment
Aiming to become a company that is advancedin the area of environmental responsiveness
Aiming to become a company that continues
to take on challenges, create and learn

Human Rights

In 2020

In 2017

Fair Operating Practices

In 2014

Environmentallyfriendly Business

CSR Material Issues

See Pages 14 to 17

Consumer Issues

V-1 Plan

Health Business

Promotion of PDCA

Comfort Business

The Environment

V-2 Plan

Foundation for Business
Lion Group Charter for Corporate Behavior/Behavioral Guidelines

Company Motto/Management Philosophy

Lion Group Charter for Corporate / BehaviorBehavioral Guidelines

http://www.lion.co.jp/en/company/html/com0101f.htm

http://www.lion.co.jp/en/company/html/com0201f.htm
CSR Report 2016

Community
Involvement and Development

Company Motto / Management Philosophy

07

Lion’s CSR

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

Business Activities
Supporting people’s lives
for creating future value for everyone

In the Environmental Field

In the Health and Comfort Field(Educational activities for oral health)(Water resource conservation activities)(Educational activities for hygienic practices)

Related information is on p48 and 49.

Management Vision

Social and Environmental Contribution Activities

Related information is on p49.

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

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

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

Our priorities
As it is necessary to co-exist with relevant communities, such as communities where our business facilities arelocated, in order to continue our business, we work to solve the issues of local communities in cooperation withlocal residents, local government, and citizens’ groups.
In addition, by providing each employee more opportunities to participate in social and environmental contribution activities related to business, we foster human resources who create new values based on a high degree ofsocial and environmental awareness.
08

CSR Report 2016

Lion's CSR

Lion’s CSR“life. love.”

Organizational GovernanceThoughts Reflected in Corporate Message
The Heart of All We Do
Lion has been a regular part of everyday life for more than 120 years.
In that time, we have seen how ordinary days, one by one, add up to a lifetime.
Moreover, we have come to believe that each new day is the first step into a bright future,

Human Rights

and that living every day positively and to the fullest is the essence of happiness.
That is why we have made it our mission at Lion to contribute to ordinary life, every day,and reflected this commitment in our corporate slogan.

Labor Practices

Corporate message
expressing Lion’s mission
and ideal vision

Lion’s approach to the“life. love.” of consumers
Through products

The Environment

Lion develops products while desiring toclosely support people to lead a healthy andcomfortable life through daily activities suchas brushing teeth, washing hands, cleaning
up, and laundry.

Fair Operating Practices

Through social and environmental
contribution activities

Consumer Issues

We hope to contribute to the creation ofhealthy and comfortable society and environment through educational activities for forming healthy habits such as brushing teeth andwashing hands, as well as water resource conservation activities.

Community
Involvement and Development

CSR Report 201609

Lion’s CSR

History of Lion Group’s Business Activities
Oral Hygiene Business

Functions added to products in responseto people’s needs, as well as awarenessof and education about oral hygiene

Founding

GrowthMass Production(From 1896)(From 1913)(1960s to 1970s)

Promoting oral hygiene/
The root of social contribution activities

Starting educational activities to instill tooth brushinghabits in children

Lion Toothpowder

Charity coupons printed on theback of packets (The root of Lion’ssocial contribution activities)

Tooth paste were sold alongsidesuch promotional gifts as picture books,
helping to teach tooth brushingfrom an early age

Expanding the market, and developing world-class products

Completion of the
Odawara Plant(Reinforcement of
production system)
White & White(Development of laminated tubes
which are easy to use)

Lion Dental Clinic for Children

Culture of Cleanliness andEnvironmentally-friendly Business

Education about cleanliness andmeasures for the global environment

Promotion of awareness of hygieneContribution to improved
hygiene in post-war Japan

Response to water
environment issues(1891 to 1940s)(1950s)(1960s to 1980s)

Promoted awareness aboutwashing with detergent

Contributed to eradication ofparasites with a neutral detergent for washing vegetables

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

Lipon
Manual on standard(Japan’s first fattyhome laundry procedures
alcohol-based(Education on laundry
synthetic detergent)
procedures)
Lipon F
(Earned the top recommendation of theJapan Food Hygiene Association)

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

10

CSR Report 2016

Dash

Murin (phosphorus-free)TOPLion's CSR

Lion’s origins lie in laundry soap and toothpaste. Since our founding, we have promoted
a culture of cleanliness and oral hygiene by providing useful products and helping to foster good habits.
Building on these strength, the Lion Group has been focusing on the areas of oral hygiene, cleanliness and environmental friendliness which represent important social issues.

Organizational Governance

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

Expansion

Present(From 1970s onward)

From oral hygiene to systemic health
Promotion of “preventive dentistry”

Human Rights

Responding to diversifying oral health issues
with more scientific researchLabor Practices

Clinica
Advantage series(Promotion of “preventive
dentistry”)

Clinica(For prevention of cavities)

Dentor(For prevention of pyorrhea)
Educational activities for oral
health in Asian countries

The Environment

Dentor Systema series(For prevention of periodontal
disease)Through supplying many kinds of detergent, including laundry detergents and soaps, Lion has helped instill a cultureof cleanliness in society from the days when notions about cleanliness were less well formed until the present day. In
product development, we are currently tackling global environmental issues beginning with those relating to water.

Actions to meet increasing needsfor disinfectants that came out offood poisoning cases(1990s to 2000s)

Expanded a line of products based on plant-derived materials

Launched medicated soaps anddeveloped educational activities
for children

TOP SUPER
NANOX
Educational activities to make handwashing a habit

KireiKirei
Medicated Liquid
Hand soap

KireiKirei
Medicated Foaming
Hand Soap

TOP
HYGIA

LOOK BathAntimold Fogger

Contributing to a clean lifestyle in Asia

Overseas NANOX

Community
Involvement and Development

Spark

Response to water resources
issues and water use reductions

Consumer Issues

Shokubutsu-Monogatari(Plant Story)

Present

Fair Operating Practices

Response to petroleum
resources issues andresource conservation(1990s)The “Beat” brand laundry
detergent sold in South Korea

CSR Report 201611

Lion’s CSR

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

Also, for each of the material issues, we have set a medium-term objective for three years which is consistent with
our management plan. In 2015, we conducted improvement
activities through PDCA with the aim of achieving V-2 (20152017) medium-term objectives.
Considering the confirmation and evaluation of achievements in our overseas group, we identified material issues
for the entire group including overseas companies in 2015.

Specific Processes of Identifying Material Issues

International CSR initiatives including ISO 26000 and UN Global Compact
External factors
Needs of stakeholders that can be addressed
through dialogues with Lion

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

Lion’ s CSR Material Issues

Value Chain and Material Issues (Activities in 2015 are described in related pages.)Stages ofValue Chain

Major Initiatives
Undertaken by Lion

Procurement of Raw Materials,
Packages, and Containers

・Promoting Human Resource Development ▶ p30-31/Revitalization Programs

CSR Material Issues

・Establishing Good Working Environments ▶ p32
・Promoting Employees’ Health Management ▶ p33

Opportunities

・Establishing a Group-wide CSR Management Structure ▶ p12-13
・Formulating and Disseminating Human Rights Policy, Ensuring Human Rights Due Diligence＊ ▶ p29

Risks

・Enhancing Group-wide Management of Chemical Substances, Preventing Pollution▶ p35-36

・Promoting CSR Procurement ▶ p40-41▶ p46

・Promoting Information Security

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

Health and Safety Management System ▶ p33

Business Partners

Key Stakeholders

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

12

CSR Report 2016

▶ p42-

Lion's CSR

01

Lion Group Educational Activities
for Oral Health in Japan and Overseas

Aiming to create healthy and comfortable living habits, Lion has been conducting educational activities fororal health focusing on prolonging the “healthy life
expectancy” not only in Japan but also at overseas
bases in Asia.
Delivered via the Internet, the Oral Health Event ofOrganizational Governance2015
Highlight

Tooth Brushing for Children, started in 1932, is heldwith elementary school children participating from allover Japan and countries and regions in Asia. Overseas
group companies have also conducted educational
activities in cooperation with respective governments,
municipalities and communities.
Related information p18-23

02

Human Rights

2015ht
Highlig

Promotion of Toothbrush
Recycling Program
By providing consumers with opportunities to recycle
their toothbrushes easily, we aim to raise consumers’
environmental awareness and improve their dental
and oral health by encouraging them to change their
toothbrushes once a month.
Related information p24-25

for Daily Life and Promoting
Educational Activities

The Environment

Society/
Environment

Use by Consumers
・Providing Information UsefulLabor Practices

Setting “Realization of an environmentally advanced
company” as one of our management objectives, wehave made efforts to reduce environmental impacts inbusiness activities. Under this idea, we started a program to collect used toothbrushes and recycle them toother products such as plant pots, in 2015.

▶ p45

・Offering Products and Informationthat Contribute to the Development ▶ p24-25,46
of a Sustainable Society
Fair Operating Practices

・Engaging in Progressive Environmental Activities ▶ p34-39
・Enhancing Social Contribution Programs Leading to Forming Healthy and Comfortable Living Habits▶ p18-25,47-49

・Promoting Risk Management, Penetration of Compliance/Internal Control ▶ p26-28

Consumer Issues-44

Community
Involvement and Development

Customers

Local Communities
Environment

Shareholders/Investors

CSR Report 201613

Lion’s CSR

Objectives of the Medium-Term Management
Plan (V-2:2015 to 2017) and Achievements in2015 in Relation to CSR Material Issues
For CSR material issues identified by Lion, we conducted activities to achieve the 2017 medium-term objectives. In Japan, new personnel measures and various kinds of training throughe-learning were conducted, in addition to cross-department committee activities conducted
every year. In overseas group companies, taking into account laws, cultures, and customs
which vary depending on countries and regions, activities have been promoted based on thesituation of each group company.

Core Subjects

Ideal Vision

CSR Material Issues

2017 Medium-term Objectives
Domestic

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

Establishing the Groupwide CSR Management
Structure

Disseminating policies concerning CSR

Domestic

Managing progress toward objectives

Organizational
Governance

Maintaining a Sound
Management Systemthat is Continuously
Trusted by Society

Overseas

Setting objectives and managing progress

Promoting
Risk Management

Domestic

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

Domestic

Embedding Compliance/
Internal Control Systems

Raising awareness of compliance

Overseas

Enhancing internal control systems

Formulating and Disseminating Human Rights Policy

Domestic

Disseminating the Lion Group Charter for
Corporate Behavior as human rights policy
Domestic

Human Rights

Establishing a
Framework for
Respecting Human
RightsPromoting self-assessment questionnaire of CSR
activities by suppliers and offering its feedback

Ensuring Human Rights
Due Diligence*

Domestic

Disseminating information regarding the
hotline and strengthen the advice and whistle-blowing framework
Overseas

Setting up and operating internal contacts
for reporting and consultations* Steps that an organization should take in order to recognize, prevent, and address negative influences on human rights.
14

CSR Report 2016

Lion's CSR

Sustainable Development Goals (SDGs)

Organizational Governance

The numbers in the column of material issues in the table shown below are numbers of SDGs which
Lion hopes to contribute to attainthrough its business.
We will consider Lion’s objectives and KPI toward achievementof each SDG, taking into accountour business direction.
Cited from the website of the United Nations Information Centre.

Human Rights

Achievement from 2015

Page of RelatedInformation in CSR
Report 2016

URL of Lion Web Page

(Websites are all in Japanese)p28

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

Including policies concerning CSR in Employment Rules
and disseminating them through training, posting on thebulletin board, and morning meetings--

Announcing progress through CSR Report (Once a year)

p14-17

http://www.lion.co.jp/ja/csr/lion_csr/promotion/vision.php

Setting objectives [Disclosing the medium-term objectivesof V-2 (2015 to 2017) in CSR Report]
Announcing progress through CSR Report (Once a year)

p14-17

http://www.lion.co.jp/ja/csr/lion_csr/promotion/vision.php

Confirming and reviewing BCP at Executive Committee(Once a year )Revising “Manual on countermeasures against new typesof influenza and other infectious diseases”

p27

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

Implementing the Compliance Awareness Survey (Once ayear. Response rate was 98% in 2015)
Providing education programs through e-learning with regard to compliance, sexual harassment, power harassment and insider tradingp28

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

Introducing the internal control on financial reporting andimplementing the assessment--

Implementing e-learning on the Lion Group Charter for
Corporate Behavior (Once a year)p29

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

Having suppliers self-check their CSR activities and feeding
assessment results back to the suppliers (Once a year)p41

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

Dissemination through the Compliance Awareness Survey(Annually implemented, Dissemination rate in 2015 as 98%)
Responding to and sorting out all cases

p28

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

Setting up and operating internal and external contacts
for reporting and internal contacts for consultations-

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

Labor Practices

Implementing e-learning on the Lion Group
Charter for Corporate Behavior (Twice a year)

The Environment
Fair Operating Practices
Consumer Issues
Community
Involvement and Development

CSR Report 2016

15

Core Subjects

Ideal Vision

CSR Material Issues

2017 Medium-term Objectives
Domestic

Promoting Human
Resource Development/
Revitalization Programs

Labor Practices

Changing Awarenessof Employees throughEstablishing Good Working
Raising Morale andEnvironments
Motivation
Promoting Employees’
Health Management

Embedding measures for promoting PDCA through implementation of the target management system
Global human resource development
Domestic

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

Promoting work-life balance with measures for building an environment where employees can work healthily and energetically
Overseas

Enhancing opportunities for talks between employees and management
Domestic

Improving the environment to allow employees towork healthily and energetically
Domestic

Enhancing Group-wide Occupational
Improving occupational safety and safety of facilities based on
Health and Safety Management System the“Health, Safety and Disaster Prevention Management System”

The Environment

Contributing to theDevelopment of a
Sustainable Society
as anEnvironmentally
Advanced Company

Engaging in Progressive
Environmental Activities
Preventing Pollution
Enhancing Group-wide Management of Chemical Substances

Domestic

Overseas

Promoting “Eco Vision 2020” and managing progress thereof
Domestic

Promoting pollution prevention
Domestic

Enhancing chemical substances management systems
Domestic

Fair Operating
Practices

Consumer Issues

Promoting CSR
Promoting CSR
Activities throughout Procurement
the Value Chain

Promoting self-assessment questionnaire of CSR activities by suppliers and offering its feedback
Domestic

Promoting “Eco Vision 2020” and managing progress
thereof

Offering Products and Informationthat Contribute to the Development of a Sustainable Society

Promoting environmental educational activities
for consumers through products

Providing Information Usefulfor Daily Life and Promoting
Educational Activities

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

Pursuing Customer
Satisfaction by
Creating Safe andTrustworthy Products Enhancing Group-wide
Quality Assurance System

Domestic

Domestic

Domestic

Enhancing group-wide quality assurance system

Overseas

Reinforcing compliance with regulations in each country
and enhancing responses to customers
Domestic

Community
Involvement andDevelopment

16

CSR Report 2016

Co-existing andCo-prospering withSociety and Communities/
Contributing to theDevelopment of Society
in the Areas of Health,Comfort and theEnvironment

Promoting Information
Security Measures

Promoting information security

Enhancing Social
Contribution Programs
Leading to Forming
Healthy and Comfortable
Living Habits

Promoting educational activities for oral health
Promoting preventive dentistry (recommending self-careand professional care) and education for health instructors and children

Overseas

Enhancing information security management systems
Domestic

Domestic

Overseas

Overseas

Promoting cleanliness activities“Promoting Education Activities for Children’s
Hand Washing and Gargling”

Achievement from 2015

Page of RelatedInformation in CSR
Report 2016

Promoting the Target Management System to enhance activities to promote PDCA toward attaining objectives and providing trainings thereon
Developing Human Resources with an Aptitude for Marketingp30

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

Completing establishment of objectives and action plans for practicalmeasures in accordance with Measures for Women’s Promotion
Making an approach to establishment of a special subsidiary for promoting employment of people with disabilities

p31

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

Achieving all objectives of the Next Generation Support Act Phase 4 Action Plan
Establishing and conducting Phase 5 Action Planp32

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

Periodically holding labor-management meetings--

Providing training on health management through e-learning
Offering health checkups on a regular basis (Once a year)p33

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

Organizing Safety, Hygiene and Disaster Prevention Meeting topromote PDCA for safety activities (Twice a year)p33

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

Formulating goals for 2017 of the Environmental Objective “EcoVision 2020” and managing the progress thereof

p34-39http://www.lion.co.jp/ja/csr/env/ecovision2020/

Thoroughly managing emissions and wastewater in accordancewith statutory and voluntary criteria
River water monitoring both by industrial groups and by Lionp35

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

Establishing and operating a management system for information
on chemical substancesp36

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

Having suppliers self-check their CSR activities and feeding assessment results back to suppliers (Once a year)p41

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

Holding the Environmental Action Promotion Committee to manage
environmental progress (Twice a year)
Starting purchase of RSPO certified palm oil derivative

p34-35,40

http://www.lion.co.jp/ja/csr/env/ecovision2020/
http://www.lion.co.jp/ja/csr/env/guide/

Attaching Environmental Label to eco products and providing
consumers with information
Promoting Toothbrush Recycling Program

p24-25,46

http://www.lion.co.jp/ja/csr/consumer/3r/

Creation, Accumulation, and Provision of Living Information by“Meisters of Daily Life”
Proceeding with Oral Care Solution Business (ORALYSIS, ORALCOM)
Holding Information Exchange Events for Consumers
Providing information through Lidea, a new website for lifestyle information

p45

Organizational Governance
Human Rights
Labor Practices
The Environment

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

Fair Operating Practices

p28,35,42-44

Lion's CSR

http://www.lion.co.jp/ja/csr/consumer/quality/-

Providing training through e-learning with regard to information
security, risks of social media, and information management systems

p46

http://www.lion.co.jp/ja/csr/consumer/info-security/

Implementing various measures to prevent leak of personal andconfidential information--

Holding an Oral Health Event of Tooth Brushing for Children
Implementing tooth brushing educational activities in areas near
our business facilities
Implementing tooth brushing educational activities at kindergartens and preschools

p18-23, 48

Implementing hand-washing educational activities in areas near
our business facilities
Implementing hand-washing educational activities at kindergartensand preschools

p49

Community
Involvement and Development-

Consumer Issues

Promoting PDCA for quality assurance activities conducted by CS/PL
Committee (Twice a year)
Establishing and operating a management system for information on
chemical substances
Providing education on “Fundamental Quality Assurance” through e-learning
Promoting response to GHS (Globally Harmonized System of Classification and Labelling of Chemicals)
Enhancing customer support by the customer support center and themarketing department
Enhance abilities to comply with laws and regulations of each country

URL of Lion Web Page

(Websites are all in Japanese)

http://www.lion.co.jp/ja/csr/community/oral/
http://www.lion.co.jp/ja/csr/highlight/2015/

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

CSR Report 2016

17

2015
High
light

01

Lion Group Educational Activities for Oral Health in Japanand Overseas~ Aiming at lifelong dental and oral health ~The meaning of “Healthy Life
Expectancy”
The world’s average life expectancy has been greatly
prolonged thanks to advances in medical technology, an
improvement in diet and nutrition conditions, and spreadof hygienic habits [Table 1.] For most people, however,actual life expectancy is different from healthy life expectancy. It is important to focus on, rather than merely living
long, staying healthy in body and in mind for a lifetime,i.e., “healthy life expectancy.” The difference between
the world’s average life expectancy and the healthy life
expectancy is eight years. [Table 2.] Meanwhile, in Japan,
a country where people have a long life expectancy, there
is a similar gap between the average life expectancy andthe healthy life expectancy, and prolonging the healthy
life expectancy has recently become a global issue.

Oral health and healthy life
expectancy
In recent years, it has been clear that there is a close relation between oral health and the healthy life expectancy.
In order to live healthily, it is essential to enjoy meals
every day. To enjoy meals every day, it is said that at least 20
teeth are needed for the entire lifetime. Without day-today proper oral care, risks of losing teeth due to periodontal diseases and cavities would increase.
It has been revealed that oral diseases have significant
impact on health not only in the mouth but also throughout the body. If you do not have enough teeth remaining,
it is said that it would become difficult to enjoy eating foodand that risks of decreasing bone density and developing dementia would increase. Furthermore, various studies have pointed out that periodontal diseases are highly
related to systemic illness including diabetes and pneumonia. In short, it is very important to maintain dental andoral health in order to prolong the healthy life expectancy.

Lion’s approach
Lion Group conducts educational activities for oral healthin Japan and overseas, aiming to enable consumers to leadhealthy and comfortable lives for a lifetime. Some educational activities for oral health conducted in countries/
regions where our overseas business offices are locatedare introduced in the following pages.
Lion Group will contribute to prolonging the healthy
life expectancy through educational activities for oral
health, as well as provision of products.
18

CSR Report 2016

[Table 1.] World Life Expectancy

Average of both sexes

Average of males

Average of females

1990

2015

1990

2015

1990

2015

Age 6471

Age 6269

Age 6774

Source :WHO World Health Statistics 2015
WHO World Health Statistics 2016
[Table 2.] World Healthy Life Expectancy (Data for 2015)

Global average

Average of both sexes

Average life
expectancy*

Healthy life
expectancy*

DifferenceAge 71

Age 638 years

Lion’s Business AreasJapan

Age 84

Age 759 years

China

Age 76

Age 697 years

Indonesia

Age 69Age 62

7 years

Malaysia

Age 75

Age 67

8 years

Philippines

Age 69Age 61

8 years

Republic of Korea

Age 82

Age 739 years

Singapore

Age 83

Age 749 years

ThailandAge 75

Age 67

8 years*Source : WHO World Health Statistics 2016

TotalOral health event of
tooth brushing forchildren in South Korea

Human Rights

Countries and regions where
the event was held in 2015

oral health from June 4 to 10 to teach children about how
important oral health is in a fun manner in a one-hour class
via the Internet.
Presently, the event has developed into a nationwide
event in which about 70,000 elementary school students
participate every year. It is held not only in Japan, butacross countries and regions in Asia.

Organizational GovernanceIn order to keep dental and oral health for a lifetime, it isimportant to establish proper habits for oral care since childhood. Placing emphasis on fostering elementary school students’ awareness of dental and oral health, Lion has held
the Oral Health Event of Tooth Brushing for Children since1932, in cooperation with the Lion Foundation for Dental
Health (LDH). The event is held during the week of dental/

Lion's CSR

Oral Health Event of Tooth Brushing forChildren Conducted throughout Asia

number since*Total1932 when the first

990,000*

event was held

participantsLabor Practices

South
Korea

China

No. of participantsin 2015

No. of participantsin 2015

Japan

approx.

No. of participants in 2015

700

70,000The Environment

40

approx.

approx.

Hong Kong
No. of participants in 2015

80

Thailandapprox.

No. of participants in 2015

Philippines

Vietnamapprox.

Fair Operating Practices

180

approx.

No. of participants in 201580

No. of participants in 201570

approx.

SingaporeConsumer Issues

No. of participants in 2015

200

approx.

Community
Involvement and Development

Oral health event of tooth brushingfor children in Thailand

CSR Report 201619

Educational Activities for Oral Health in Singapore
Education on oral health for children
Singapore Lion implemented an education program on oral
health jointly with the Singapore Health Promotion Board*. As
a part of the activities, the company works on the “Health on
Wheels (class in a bus)” campaign. In this campaign, the bus visited kindergartens and elementary schools, and children fromages 5 to 8 had a class on oral health in the bus. In the class,advice and tips on tooth brushing were given, and Kodomo
Oral Care Packs (containing a set of a toothbrush and toothpaste) were given to participating children. So far, the education on oral health has been provided to 15,000 children.
* Singapore Health Promotion Board is a governmental organizationthat drive national health promotion and disease prevent programmes

Bus for “Health on Wheels” campaign

Oral health guidance by facilitators

Education on oral health for underprivileged people
Singapore Lion implemented a nationwide campaign fororal health (Systema Ting Ting-a-Smile Campaign) in cooperation with Singapore Dental Health Foundation* in order
to communicate the importance of oral health and also
inform people that underprivileged people in Singapore
lack proper oral care. As part of this campaign, educationof oral health was provided through “The Joy Truck TV,” avariety program in the free-to-air channel broadcasted allover Singapore. In this program, guidance about proper oral
care for the elderly was given to caregivers. Singapore Lion
had also donated 5,000 sets of oral care products to underprivileged people, so far.
* An organization of volunteer dentists working to increase dental
awareness and promote dental health in Singapore

Guidance about interdental cleaning in the TV program

Voice

Guidance about tooth brushing in the TV program

Voice from employee of Singapore Lion
Serene Koh, Senior Product Manager

Seeing the children and the caregivers participating actively to learn about good dental care
habits makes me smile as we are able to play a part in educating the public to improve theiroral and general health.
We will continue to promote the importance of oral health to the public and thereby
improve their quality of life.

20

CSR Report 2016

Lion's CSR

Educational Activities for Oral Health in South Korea

Then, guidance on self-care methods is given to themaccording to individual dental and oral conditions.
A total of approx. 6,800 people, including approx. 2,080 people in 2015, took part in the “Oral Care Consultation Room.”

A lot of families participated

Personal guidance on oral care methods according
to individual dental and oral conditions

Human Rights

In South Korea, aiming at increasing local residents’awareness of oral health, CJ Lion has held the “Oral Care
Consultation Room” jointly with public healthcare centers
since 2012. Participants conduct a self-check on their own
oral conditions, and then receive individual examinations.

Organizational Governance

Healthcare Center “Oral Care Consultation Room”

Labor Practices

Guidance on oral care at elementary schools and junior-high schools

Check if all the teeth are meticulously clean or not!

Education on tooth brushing is provided for each classFair Operating Practices(twice a year, for students in the fourth to the sixth gradeof elementary school, and in the first to the third grade ofjunior-high school). In order to have the students develop
habits of proper oral care, dental hygienists visit schools
once a month and educate them on habits to brush theirteeth after meals as well as on correct preventive dentistry.
The number of schools with the tooth brushing facility
increased to six in 2016 from two in 2014. Approx. 4,000 students in total have received education on tooth brushing.

The Environment

In cooperation with Seodaemun-gu Healthcare Center and
Department of Preventive Dentistry and Public Oral Health,College of Dentistry, Yonsei University, CJ Lion has provided
education on tooth brushing since 2014, with tooth brushing facilities established (to offer dental health checkups andguidance on oral care) for elementary schools and juniorhigh schools within Seodaemun-gu in Seoul city. At the
tooth brushing facilities, dental examinations are conducted
continuously for three years with follow-ups, as continuous monitoring education by dentists and dental hygienists

Voice from employee of CJ Lion

Consumer Issues

Voice

Ji-Young Moon, Section Chief, Risk Management & CSR Team, CSR Specialist

Community
Involvement and Development

Hello! I am Moon, Ji-Young. I am in charge of social contribution in the CSR team. Just as
corporations support consumers’ comfortable life through good products, I support it byworking on social contribution programs. I am heartened by the smile of a lot of people
whom I meet through the activities every day. At the “Oral Care Consultation Room,” I met
an old woman who is gently smiling and shyly gave me a candy. At school, I can find a warm
welcome by the children with full smiles. Encouraged by their smiles, I will plan and conductvarious social contribution projects on which all employees can work together, sincerely
considering the roles of CJ Lion in the local communities.

CSR Report 201621

Educational Activities for Oral Health in Thailand

Education on oral health in academic society
Thai Lion holds the Lion Oral Health Award every year.
This award aims at fostering people conducting studies
and activities which could be beneficial to preventive dentistry in Thailand, the company honors and offers a cash
prize for excellent studies and activities related to preventive dentistry, in cooperation with influential dentists in

Thailand. Since the award commenced in 2009, 26 groups
have received the awards through to 2015. On the day of
the award ceremony, the Public Dental Hygiene Foundationof Thailand held an academic conference and gave a lecture
on preventive dentistry.

Lion Oral Health Award held in December 2015

Education on oral health in collaboration with the government
The Thai government has held a “Health Fair” since 2012,
with the aim of increasing Thai citizens’ awareness ofhealth. In this Fair, volunteer physicians and nurses provide
checkups for participants and prescribe drugs.
Thai Lion runs a booth in this fair, and gives guidance about

tooth brushing in order to educate people on proper oral care.
In 2015, the company coached 2,000 participants on
tooth brushing, and distributed toothbrushes and toothpastes to them in the Health Fair held at Suranaree Hospitalin Nakhon Ratchasima.

Coaching participants on tooth brushing at Suranaree Hospital

Voice

Voice from employee ofThai Lion

We are an oral health team in charge of the booth for coaching toothbrushing at the Health Fair.
We listen to customers of various generations who drop by ourbooth to talk about their troubles, and give them advice on an appropriate way to brush their teeth. As such an event is a valuable opportunity to directly talk with customers, we will further improve its contents,
responding to customers’ requests, in cooperation with the government.

22

CSR Report 2016

(From left) Pornnapa Wimonrat, Ananya Muangkaew,
Wanna Thamromdee, Karnjana Anurakkamolkul,
Saovanee Ninlux, Ayumi Sakashita,
Phakpoom Suvarnaketaka

awareness of the importance of preventive dentistry, eachof our employees are working on the educational activities
as a whole, focusing on each life stage of people throughalliance with external organizations such as governments,
schools, hospitals, and dental clinics. Lion also fully supports
activities of the Lion Foundation for Dental Health (LDH).
Infants and Toddlers

At “Oralcom,” a dental information website operated by Lion,
we answer to the problems about oral health of expecting
mothers and babies who have troubles with oral conditions.

Lion delivers leaflets to disseminate information on the importance of “preventive dentistry” and toothpastes with fluoride forchildren at the time of a checkup conducted by municipalities forchildren at the age of one year and a half. So far, they have beendelivered to approx. 200,000 infants.

Human Rights

Pregnant Women

Organizational Governance

Lion has conducted educational activities for oral healthsince 1913, aiming at maintaining people’s precious dental
and oral health. We have pushed ahead with educational
activities to disperse “preventive dentistry,” that focuses
not on the treatment after getting a cavity or periodontal disease, but on prevention before it happens. With an

Lion's CSR

Educational Activities for Oral Health in Japan

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

Junior-high and high school students

Elementary school students
The Environment
Fair Operating Practices

We educate participants in the “National High-school QuizChampionship,” a TV program sponsored by Lion, about the useof interdental cleaning tools in cooperation with LDH.

Since 1932, Lion and LDH have jointly held the “Oral Health
Event of Brushing Teeth for Children“ every year during the“week of dental/oral health” in June.

[Tooth brushing Study Website for Elementary SchoolStudents “Hamigakids”] (Japanese)
URL https://www.lion-dent-health.or.jp/hamigakids/

AdultsThe Elderly
Consumer Issues
Community
Involvement and Development

For employed workers, LDH conducts dental checkups focusedon prevention of periodontal diseases, maintenance andimprovement of dental/oral health.

LDH plans and produces the “Kenkobi” (Beautiful and healthy
mouth and teeth) exercise to maintain dental and oral health fora lifetime, and works to diffuse the exercise through the educational leaflets and videos.

[Kenkobi Exercise] (Japanese)
URL https://www.lion-dent-health.or.jp/kenkobi/
Related information p48

URL http://www.lion.co.jp/ja/csr/community/oral/ (Japanese)

CSR Report 2016

23

2015
High
light

02

Promotion of Toothbrush
Recycling Program

In May 2015, Lion launched the “Toothbrush Brigade”; a program to collect andrecycle used toothbrushes for the first time in Asia in collaboration with TeraCycle
Japan (hereinafter referred to as “TeraCycle”).

Objectives of the Program
As toothbrushes are daily essentials for everyone, about
450 million toothbrushes*1 are consumed per year.
However, used toothbrushes have been sent to landfill
areas or incinerated without opportunities to be recycled
as a resource.
As a leading company for oral care, we have supported
people to improve their dental and oral health for a long

Objective 1

time. At the same time, we have been making efforts to
reduce environmental impacts from our business activities
in accordance with one of our management objectives“becoming a company that is advanced in the area of environmental responsiveness.” Under such ideas, aiming at
the following objectives, we are promoting the programin Japan in collaboration with TeraCycle.

Contribution by offering consumers opportunities to readilytake part in recycling activities
To help local communities and societies revitalize their activities to reduce
environmental impacts by offering people from children to adults opportunities to voluntarily take part in recycling activities.

Objective 2Contribution to consumers’ oral health management
To encourage people to change toothbrushes at an appropriate interval(once a month) to maintain and increase their dental and oral health.

*1 The number of toothbrushes produced in Japan surveyed by All Japan Brush Industry Association

Contents of the Program
Applicants for participating in the program first enroll
in advance as an individual, school or group, then collectused toothbrushes. Schools and facilities can collect a lot of
toothbrushes by setting the collection boxes. Designatedtransport operators pick up the collection boxes and theparticipants are given points according to the weightof the collection. In exchange for the
points, the participants can receive plastic goods such as plant pots, made fromrecycled toothbrushes or make it adonation for educational and community support.
Plant pot made fromrecycled toothbrushes

24

CSR Report 2016

Educational/
Community support, etc.
Donation ofrecycled goods

Support

Toothbrushes
Plastic products

Recycling
manufacturer
Sending used Granting
toothbrushes points
Exchanging
pointsParticipant(Individual/School/Group)

Obtaining recycled
goodsLion's CSR

Results of Activities in 2015

Organizational GovernanceIn 2015, 115 collection bases in total*2 were set at, for example, community centers, schools, children’s center, and stores.
Aiming to increase people’s awareness of recycling and oral health, we will continue to promote the program in the future.

*2 As of December 15, 2015

Collection box set at children’s center

Human Rights

Sakurabashi Community Center
Labor Practices

Friendly Plaza Sumida Children’s CenterCollection box set at stores

The Environment

Drug Store CREATE S.D in Fujisawa Karasawa

Drug Store CREATE S.D in Shin Kamoshida
Fair Operating Practices

Voice Voice from employee in charge of the program
Jun Yokoyama Strategic Business Development Department

Consumer Issues

I planned the content of activities for the program and have been conducting theactivities in cooperation with members of TeraCycle. In 2015 which is the first yearof the program, with the aim of increasing awareness of this program, PR events
including the press conference and poster competition were held. In Sumida Ward,
Tokyo, where Lion’s head office is located, we visited junior-high schools and children’s centers and called for participation in the collection activities in an effort topromote the activities in the local community.
As toothbrushes are daily essentials that all people from children to adults use, wewere told by participants, “the activity is familiar to and can be readily addressed byanyone.” Especially, it was our pleasure to hear school officials saying, “the activities
can be addressed voluntarily by students, leading to ecological and health education.” We also obtained feedback saying “after taking part in this activity, I becameaware of periodically changing my toothbrush.”
We will continue to work on the program so as to help consumers to be moreaware of the environment and improve their dental and oral health through a new
method, i.e., recycling toothbrushes.

Community
Involvement and Development

CSR Report 201625

Ideal Vision

Organizational
Governance

Maintaining a Sound Management
System that is Continuously
Trusted by Society
Basic Approach

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

Corporate Governance System
Approach to enhancing functions to audit and supervise management
To evaluate our management objectively from the standpoint of social acceptability, including social responsibilities
to be fulfilled by the company and stakeholders’ trust, theManagement Evaluation Committee, run by outside experts,
was set up in October 2003 to ensure that the opinions of thecommittee members regarding the concept of the corporate
governance system, directions of business and product development are reflected in management.
The number of directors was reduced when the System of
Executive Officers was introduced in March 2004 to reinforce
management decision making and execution, and hence thefunction of the Board of Directors. In March 2006, we installed two external directors in order to further enhance ourcapacity to supervise the Board of Directors. In December
2006, in order to increase the objectivity and transparency ofcompensation for directors, the Compensation Advisory

Committee consisting of external directors (two external directors and two external corporate auditors) was set up. Regular meetings are held between the Representative Director
and all external directors to exchange information so as toenhance supervision and monitoring of management. Also,
in January 2013, the Lion Corporation Standards Regarding
the Independence of External Directors/Corporate Auditors
was instituted to clearly show that we bring personnel resources who can ensure independence without special interest in Lion as external directors/corporate auditors.
The countermeasures against large-scale purchase of Lion’sshares (takeover defense measures) were introduced withthe approval obtained at the ordinary shareholders meetingin 2009 and the 3-year continuation was approved at the ordinary shareholders meeting in 2015.

Corporate Governance System

ReportingOpinions
and advice

Senior Executive
Committee

Proposals

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

Board of Directors (Supervision of management)●

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

Auditing

Auditing
Reporting

Delegation

Auditing

Reporting(Internal controls relating
to financial reports)

Executive Committee (Execution of operations)(Chairperson: Representative Director and President)

Reporting

CS/PL Committee(Legality, validity, andefficiency audits; complianceprogress audits)

Departments (Performance of operations)(Business, manufacturing, R&D divisions, and functional departments)
●
●
●
●
●
●
●

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

Auditing

Strengthening of legal compliance and ethics

Corporate Ethics Committee
Lion Group Charter for Corporate Behavior; Behavioral Guidelines
Report on Corporate Governance (Japanese) URL http://www.lion.co.jp/ja/company/about/pdf/abo_gov.pdf*CS/PL Committee

CS: Customer Satisfaction PL: Product Liability Cross-departmental committee to promote quality assurance activities.
26

CSR Report 2016

Auditing
OfficeCompensation Advisory Committee

Recommendations on director compensation

Safety, Hygiene andDisaster Prevention Meeting

Monitoring

Reporting(Chairperson: Representative Director and President)

Opinions and advice on legal compliance and management policies

Environmental Conservation
Committee

Corporate auditors(Legality audit)(Operational audit)

Accounting auditors

Management Evaluation
Committee

Shareholder MeetingPromotion of Risk Management

Lion is pushing ahead with establishment of its own systems tominimize damages and continue business so as to provide products to customers even in cases where a large earthquake, spreadof infectious disease (pandemic), or other contingencies occur.
We set up a task force according to the “Manual on countermeasures for seismic disasters” in cases where seismic disasters
occur, and the “Manual on countermeasures against novel influenza and other infectious diseases” in cases where a pandemic
due to novel influenza viruses or other infectious diseases are expected to occur, so as to respond to such situation. Whether BCP
should be implemented or not is determined depending on thesize of the disaster and the degree of damages. If the BCP is implemented, we would give first priority to supply of consumer
products among our businesses.
As part of risk management, the situation of BCP is annuallyreported to the Executive Committee. In consideration of recent
increasing risks of infectious diseases, we completely reviewed
and revised our existing “Guidance to respond to novel influenza(established in 2008),” and approved it as “Manual on countermeasures against novel influenza and other infectious diseases”
at the Executive Committee in June 2015.

Human Rights
Labor Practices

1. product quality evaluation 2. fluctuation in raw materials costs
3. fluctuation in foreign exchange rate
4. major lawsuits, etc. 5. natural disasters (e.g. earthquakes).

Business Continuity Plan (BCP)

Organizational GovernanceIn order to continue providing our customers with safe andreliable products, we have appointed a Director Responsible
for Risk Management who exhaustively controls and supervises the risk of the whole Lion Group. Particularly for the risk
management of the environment, quality assurance, and accidents and disasters, each committee discusses countermeasures in advance and the Executive Committee deliberates ifnecessary. Each factory is certified with ISO14001 and eagerly
works on quality management and environmental protection.
In cases where physical emergencies such as natural disasters
and accidents arise, in accordance with the Emergency Response System, we report the relevant facts to the president
and corporate auditors, among others, and report how thesituation is being handled to the Executive Committee and theBoard of Directors.
Of many different risks that can occur in the course of ourbusiness operation, the five points below have been disclosed
in the Company’s Securities Report* as key areas that can havea major influence upon the judgment of our investors.

Lion's CSR

Improving systems to respond to various risks in business* Securities Report (Japanese)

URL http://www.lion.co.jp/ja/ir/library/yuhou/

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

Consumer Issues

UN Global Compact

Community
Involvement and Development

The UN Global Compact (UNGC), in which Lion has participated since 2009, is a voluntary initiative of companies and organizations aiming at realizing ten principles relevant to the areas of human rights, labour,
environment and anti-corruption. Lion is also a member of the Global Compact Network Japan (GCNJ), andparticipates in subcommittee activities on a regular basis in order to promote the CSR activities of the member companies.
UN Global Compact URL https://www.unglobalcompact.org/
Global Compact Network Japan (Japanese) URL http://ungcjn.org/

CSR Report 2016

Fair Operating Practices

Systems have been put in place to ensure the appropriateness of the Lion Group’s operations in accordance with Japan’s Companies Act and the Ordinance for Enforcement of
the Companies Act. With regard to systems for evaluating
and auditing internal control over financial reporting as prescribed in Japan’s Financial Instruments and Exchange Act,
we have been establishing controls at the company-wide andbusiness-process levels. Evaluations of internal control effectiveness are carried out by the Auditing Office, which reports
findings to the president and corporate auditors, as well as
to the Board of Directors on a regular basis.
In 2015, as a result of the evaluation, we determined that
Lion’s internal control over financial reporting is effective,
and submitted the Internal Control Report to the Prime Minister together with the Securities Report in March 2016.

The Environment

Enhancing systems to audit the appropriateness of operations

27

Organizational Governance

Embedding Compliance
Efforts for legal compliance and enhancement of a sense of ethics
The System of AL Heart Hotline
Consulter/Informer(employees within Lion Group, temporary staff, or external business partners)
Consultations andNotifications

Compliance Awareness Survey*2
All Lion Group employees are asked every year to complete acompliance awareness survey. The survey of 2015 was the twelfth
survey conducted. The findings are reported to management
and feedback is provided to individual divisions. This contributes
to the maintenance and strengthening of compliance systems.
The 2015 survey (about a 98% response rate from around3,935 employees) solicited opinions on a range of issues including problems with work environments.

Raising Awareness of the Hotline
To ensure full communication with temporary staff and all our
employees, an internal and external reporting system, the “AL(All Lion) Heart Hotline,” has been set up by the company.
In 2015, there were twelve instances of consultation or reporting, but no instances of grave misconduct were found andall the cases were appropriately addressed and resolved.

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

Feedback

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

External contact(lawyer)

Report results of investigationand countermeasures

Director Responsible
for Corporate Ethics

Report asneededBoard of Directors

The Corporate Ethics Committee
Set up as needed

The Ethics Evaluation Committee(consisting of external experts)

AL Heart Hotline Consultations
and Notifications (2015)

AL Heart Hotline (Japanese)
URL http://www.lion.co.jp/ja/company/compliance/index.php

Introduction of websites

Consultations andNotifications

Feedback

Report contents

Seeking solutions/Resolving problems

The Corporate Ethics Committee, chaired by the Director Responsible for Corporate Ethics, proactively works to foster compliance awareness within the Lion Group. The basis for compliance is the “Lion Group Charter for Corporate Behavior*1.”Thisis distributed in pamphlet form to all employees working for
the Lion Group and is publicly available via Lion’s website. According to an annual program, e-learning and other educations
are periodically provided.
In 2015, in addition to going through and committing to the“Lion Group Charter for Corporate Behavior,” our e-learning
program provided training regarding fundamental quality assurance, the basics of labor management, risks relevant to social
media, information security, information management system,
harassment at workplace, and basic knowledge about insider
trading.

Power harassment behaviors

9 cases

Personnel/labor management issues

1 caseOther

2 cases

Percentage of Employees
Who Received Survey Feedback
0

20

40

60

80

100（％）

2011

87.7％

12.0％ 0.3％

2012

90.5％

9.2％ 0.3％

2013

91.6％

8.1％ 0.3％

2014

93.9％

5.9％ 0.1％

2015

94.7％

5.1％ 0.2％(year)

Feedback
received

Not received

No response*1 10 principles of the Lion Group Charter for*2 Compliance Awareness Survey

1. Principal Mission
2. Compliance with Public Rules
3. Disclosure
4. Environmental Issues
5. Promotion of Working Environment

Questionnaire survey in which respondents anonymously answer questions on, for example, compliancewith the Lion Charter for Corporate Behavior, whether
or not feedback was received from the Compliance
Awareness Survey in the previous year, and awarenessof the hotline.

Corporate Behavior

28

CSR Report 2016

6. Contribution to the Society
7. Opposition to Antisocial Forces
8. Contribution in Foreign Countries
9. Practice of Corporate Ethics
10. Resolution of Problems

Ideal Vision
Lion's CSR

Human Rights

Establishing a Framework
for Respecting Human Rights

Organizational Governance

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

Human Rights

Disseminating Human Rights Policy
Making the Lion Group Charterfor Corporate Behavior and Behavioral Guidelines take root
on an annual basis via e-learning or documents by which weensure the Charter is read and consented to. Also, we conduct a questionnaire survey every year to confirm the extent
to which the Charter has taken root.

Labor Practices

Lion has stated its policies regarding respect for humanrights in the “Lion Group Charter for Corporate Behavior”
and “Behavioral Guidelines” based thereon. To ensure thorough communication of the Charter to directors, Lion Group
employees, and temporary staff, we provide an opportunity

Ensuring Human Rights Due Diligence

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

The Environment

Enhancing frameworks to ensure respect for human rights inlight of stages of the value chain
Introduction of websites
Caring for mankind (Human rights) (Japanese)
http://www.lion.co.jp/ja/csr/humanrights/

Fair Operating Practices

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

Procurement of Raw
Materials, Packages,
and Containers

Business partners

Establishment of
the Hotline
Related information p28
Participation in
RSPO activities
Starting purchase of
RSPO-certified palm
oil derivative
Related information p40

Confirmation of recruitment,
evaluation, and remuneration ateach point in time
Execution of human rights education
Creation of an environment inwhich discrimination on the basisof religion, race, and other factors is curbed
Establishment of the Hotline
Related information p28

Subjects for Clinical Trials

Respecting the Helsinki Declaration
Operation of the “regulations for implementation of clinical trials” in order to place top priority on the safetyof subjects and ethical considerations

Customers

Aggressive pursuit ofsafety and functionalities by using our own“product management system”
Related information p42-44
Consideration for “
vulnerable users” suchas the elderly and children, by preparing a“labeling manual”

Society/Environment

Residents aroundour factories

Environmental management under Lion’s
Environmental Guidelines to prevent contamination, and compliance with laws andregulations
Related information p34-36
Implementation of environmental assessment
ahead of constructionof new factories

CSR Report 2016

Community
Involvement and Development

Palm oil farms

Employees

Use by consumers

Consumer Issues

Main Subjects and Each Approach

Efforts based on Procurement Principles
and Lion Group Supplier CSR Guidelines
Related information p41

Major initiatives
undertaken by Lion29

Ideal Vision

Labor Practices

Changing Awareness of
Employees through Raising
Morale and Motivation
Basic Approach

In the Lion Group Charter for Corporate Behavior, Lion calls
for “fair treatment respecting the diversity, individuality
and personalities of our employees” and “ensuring a safe
and comfortable workplace to realize the mental and physical well-being of our employees.” Also included in the Behavioral Guidelines are “to promote a healthy work-lifebalance and strive to maintain work environments thatflexibly allow a variety of working styles,” “do our utmost
to assist employees who strive to learn specialized skills
and knowledge and aim for ambitious goals.” and “engage
sincerely in dialog and discussion with employees and theirrepresentatives.”

Promoting Amicable
Labor-Management Relations

nize freedom of lawful union activities by union members; the company shall not unfairly treat union members
by reason thereof; and the company and the union shallhave labor-management meetings on a regular basis toconsult with each other on an equal footing.
Operating under a union shop agreement*1, Lion has
endeavored to build amicable labor-management relations, in which employees and management proactively
conduct activities such as reporting on business conditions and exchanging opinions about the working environment at labor-management meetings.

Lion executes labor agreements with the Lion Workers’
Union for the purposes of promoting sound labor-management relations based on mutual understanding andtrust, observing the Lion Group Charter for Corporate Behavior by realizing the social mission and responsibilities of
the company and its workers’ union, and working together to achieve growth of the company’s business and maintain/improve working conditions of union members.
The agreements provide that: the company shall recog-

Human Resource Development
Promoting PDCA through the target management system and providing
opportunities for training and ability development
Improving a Training System for Each Function
In training for each job function, measures to reinforce specialties in each business are offered. In 2015 we especiallyenhanced training for the marketing division for the second
consecutive year. To date, human resources who are active intheir respective divisions have been appointed as staff of themarketing division. For further improvement, we have designed and operated a program to discover human resources
who are enthusiastic enough to continue efforts and learning. This program provides systematic learning opportunities
for mastering practical marketing theories and planning anddesigning based on insights into consumers and competitive
strategies, and fosters future marketing personnel by judging their qualifications.

*1 Union shop agreement:

A labor agreement in which a worker is employed by a company
on condition of becoming a member of a specific labor union.

30

CSR Report 2016

LION CHALLENGE CUP - Innovation
In 2015, the “first LION CHALLENGE CUP – Innovation” washeld, in which employees can directly make a “dream-inspiring proposal for Lion” to management. This event aims todraw out innovative proposals leading to significant future
growth of the entire company, increasing employees’ awareness of personal development and identifying business domains in which we should contribute to society. The contentsof the proposals which got through the preliminary roundare presented to management at the final round.
In 2015, from among 42 entries, one team was awarded
the gold prize, one team the silver prize, two teams thebronze prize, and one team the jury’s special prize.

Human Resource Diversity[Declaration for the Promotion of Women’s Participation and Advancementin the Workplaces ] (Japanese)
URL http://www.positiveaction.jp/declaration/add/search_detail/?id=1664* In Lion, personnel in a managerial position, which is at the level of an assistantmanager or higher, is considered as a managerial official.

Implementation of Regionally Based
Employees Program
Rehabilitation seminar prior to return to work

Fair Operating Practices

Career ForumThe Environment[Lion’s Action Plans in Accordance with the Act of the Promotion of
Women’s Participation and Advancement in the Workplaces ] (Japanese)
URL http://www.positiveaction.jp/pa/search/detail.php?company_id=1620id=1620

Employing People with Disabilities*2 The Diverse Human Resource Promotion Committee

With subcommittees established in relation to three categories, “female employees,” “re-hired employees who have reached the
mandatory retirement age,” and “temporary workers,” on whom the Company puts emphasis, the committee plans and formulates
measures to make each of them more active, and pushes ahead with the measures in management.
CSR Report 201631

Community
Involvement and Development

In order to take advantage of individual abilities regardlessof whether the persons in question have disabilities or not,we proactively employ people with disabilities, developing a
corporate culture to improve the working environment andsupport such individuals in the entire workplace.
We launched a team to prepare for establishing a special
subsidiary to promote employment of people with disabilities in 2015. With the establishment of Lion Tomoni Co., Ltd.
in March 2016, we are promoting the employment of andexpanding opportunities for people with disabilities.

Consumer Issues

Since 2013, Lion has had in place the Regionally Based Employees Program with the aim of finding and keeping excellent personnel from among our temporary employees, who
are contributing greatly to the company, as well as enabling
regular employees to choose diverse working arrangements.
The regionally based employees can select their workplacefrom seven regions in Japan that Lion has chosen for this program. Their compensation and benefits are at a similar level toregular employees in the same block. Under the program,eight such individuals were hired from among temporary employees in 2014 and nine in 2015 and 2016 respectively.

Labor Practices

This measure was proposed by the Diverse Human Resource
Promotion Committee for the purpose of supporting the career development of young employees.
Opportunities to learn about the operations of other departments are provided so that employees can obtain inspiration to design their career. Personnel in specific positions
describe their departments and the content of their work.
Since 2012 when the forum started, departments of finance,
legal affairs, marketing, public relations, CSR, and sales havebeen taken up as topics.
In the fourth forum in 2015, under the theme of overseas
business, specific operations of expatriate personnel and how
to use one’s previous career experience were explained andadvice for the future was given.

Aware that it is essential for women to work actively in orderto create our corporate value, we have addressed measures
to advance women’s success in their working life.
Recently the Japanese government has set various goals
and pushed ahead with measures relevant to promotion of
women’s empowerment so as to realize a gender-free society
in which men and women can participate.
Lion has improved childcare-related systems and implemented
measures to support employees to maintain a balance between
work and childcare so that they can continue to work for a longtime. Consequently, as seen in Lion’s non-consolidated average
service years for men and female employees, which are respectively 18 years and three months and 16 years and six months,
female employees have worked actively for a long time. We arealso making efforts to increase the percentage of female managerial officials* to 15% or higher in Japan by 2020.
Lion’s action plans in accordance with the Act of the Promotion of Women’s Participation and Advancement in the
Workplaces and declaration for women’s promotion areavailable on the “Positive Action (Women’s Promotion) Information Portal Site,” a project commissioned by the Japanese
Ministry of Health, Labour and Welfare.

Human Rights

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

Approach for the Promotion of Women’s Participation and Advancement in the Workplaces
Organizational Governance

Lion has made efforts toward promoting “human resource
diversity” in light of the need to respond swiftly to changes
in the business environment.
Since we set up “the Diverse Human Resource Promotion
Committee”* 2 in 2010, we started consideration on thetheme “Diversity” by planning and formulating personnel
measures to make diverse human resources more active withparticipation of employees. Currently a team for diversity set
up within the Personnel Department has been implementing
measures to promote human resource diversity.

Lion's CSR

Using Personnel capable of responding swiftly to changes
in the business environment

Labor Practices

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

Building an Environment Where
Employees Can Work DynamicallySince 2010, Lion has worked to reduce prolonged work andencourage employees to take paid leaves. In 2015, withweekly “No-overtime day” and monthly “No-overtimeweek” implemented, overtime work decreased on average inLion (including employees assigned to affiliated companies).
In order to facilitate understanding of management ofworking hours, e-learning is continuously provided for all
employees. Furthermore, under a labor-management agreement, we proactively encourage employees to systematicallytake at least three days paid leave per year with the aim ofhaving them take more than 60% of paid leaves. We will
make continuous efforts in this regard.

Support for Childcare and Nursing Care
As a result of enhancing various programs and increasing
employees’ awareness, the ratio of female employees taking
childcare leave has been 100%. Male employees are also taking the leave in many departments. In addition, Lion is addressing career development during the childcare period by
establishing a website to support childcare and supporting
employees taking childcare leave to upgrade their skills.
[Support for Childcare and Nursing Care (Japanese)]
URL http://www.lion.co.jp/ja/csr/employee/work_life/

Measures to support employees engaged
in nursing care
As part of creating the environment that allows employees tocontinue to work without anxiety, Lion has enhanced support
for employees engaged in nursing care. In addition to ordinary
annual paid leaves, we have in place systems for cases where it
is required to take leaves for nursing care, including accumulated leaves for medical nursing care (accumulation of expired annual paid leaves), acquisition of a half-day care leave, and nursing care leave expanded up to 365 days which can be taken
separately). The Short Flexible Time System, a new way to work
combining short-time and flex-time, was also instituted. At thesame time, with the introduction of website for employees
aged 40 and up to support nursing care, e-learning on preparation for nursing care has been provided.

The Work-at-Home System
Lion has been making efforts to improve business productivity and work-life balance. The “work-at-home” system wasintroduced in February 2015 as a flexible way to work, inwhich the workplace is not limited to the office. In order tofacilitate understanding and penetration of the system, we
have been enhancing the system by repeatedly holding explanatory meetings and individual hearings at workplaces
and confirming the effects of facilitating use of the system.

Approach to compliancewith Next Generation Support Act
Lion has formulated and addressed action plans in accordance with the
Act for Measures to Support the Development of the Next-Generation
Children by the Japanese Ministry of Health, Labour and Welfare. As aresult, achieving all goals from phase 1 to 4, we have been certified as
a company supporting childcare with the “Kurumin” mark.
32

CSR Report 2016

Act for Measures to Support theDevelopment of the Next-Generation
Kurumin mark:Children Phase 5 Action Plan
Four goals are set in the Phase 5 Action Plan forthree years from April 2015 to March 2018.

Goal:1

A symbol of a company
supporting childcare

Within the period of the action plan, implement support measures to create a working environment in which employees onchildcare leave can smoothly return to work.

Introduction of a website for supporting employees on childcare leave totake a balance between their career and childcare (February 2016).
Implementation of group training prior to return to work (October 2015,
February 2016).
Launch of individual explanatory meetings for employees on childcare leaveand their bosses (January 2016).

Goal:2

Within the period of the action plan, implement measures tofoster corporate culture toward women’s participation andadvancement in the workplaces.

The 4th Career Forum was held (November 2015).

Goal:3

Within the period of the action plan, have 13 or more male
employees take childcare leave.

Six male employees have taken the leave (As of March 2016).

Goal:4

Within the period of the action plan, facilitate understanding
about and use of the Work-at-Home System, and implement
measures to promote the adoption of the system.

Explanatory meetings and individual hearings at workplaces were held.

Employee Data (Non-consolidated, including
employees assigned to affiliated companies)
Employees

MaleFemaleFemale employee ratio (%)
New Employees (New
Graduates)
Re-hired
Retirees

Male
FemaleNumber of people%

Temporary employees
Female managers*1
Employees withdisabilities
Employees who tookchildcare leave

Number of people%
Number of people%
Male

FemaleEmployees who tookMale
reduced working hours
Femalefor childcare
Average overtime per month (hours)*2
Annual paid leave used (%)*2
Average service yearsMale(excluding re-hired
Femaleemployees)
Employees who resigned
Number of people
within three years of%entering the company

2013
2,316
722
23.8
55
30
300
9.9
330
46
5.2
44
1.9
5
37
0
43
10.8
51.2
20.1
17.6
3
1.3

2014
2,292
729
24.1
59
25
289
9.6
457
52
5.9
43
1.8
6
37
0
57
11.7
50.8
19.8
17.7
2
1.0

2015
2,268
758
25.0
56
28
262
8.7
461
57
6.8
51
2.0
5
33
0
58
11.0
51.8
19.8
17.4
4
1.6

*1 Position corresponding to section chief or higher*2 The data of 2015 covers the number of employees of Lion Corpora-tion and employees assigned to affiliated companies (data until 2014
covers the number of employees of Lion Corporation only)

Employee Data related to affiliated companies is available on thefollowing website. (Japanese)
URL http://www.lion.co.jp/ja/csr/employee/various/

Lion's CSR

Promoting Employees’ Health Management
Supporting employees’ self-management and establishing a reliable andhealthy working environment

Guidelines for Health
URL http://www.lion.co.jp/en/company/compliance/health.php

Organizational Approach to Health Management

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

Human Rights

Lion has conducted health management activities based on
discussions at a joint session called the “Health Management
Promotion Committee Meeting” attended by the employee
who is responsible for health management of the company(The Personnel Manager), the Health Insurance Society andthe Health Support Office.
We will continuously make improvements through PDCA management and accumulate know-how on industrial health.

Mental Health Initiatives
With our “Mental Health Basic Policy” established in2004,
Lion has taken proactive measures for the mental health of
our employees, for example, consultation after periodical
checkups for all employees and a stress level check test whichstarted in 2006. In 2015, 98% of employees took the stresslevel check test*1. The results are compiled and analyzed bysection/department in such a way that individuals cannot be
identified, fed back to responsible officers, and used fortraining for managers. In this way, Lion has continued organizational mental health initiatives.

Organizational Governance

Based on the concept that the good health of employees
serves as a business foundation to support sound corporate
growth, Lion has been conducting a variety of measures.
With the Guidelines for Health as our core basic principle,
Lion conducts detailed health management activities.

[ALOHA]All Lion Oral Health Activity
Labor Practices

Enhancing Group-wide Occupational Health and Safety Management System
Establishing systems to promote occupational safety and safety of facilities

Occupational Safety

For the sake of employees (Labor Practices)(Japanese)
http://www.lion.co.jp/ja/csr/employee/Community
Involvement and Development

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

Introduction of websites

Consumer Issues*1 Stress level check test

We consider that most of the plant accidents that recently
happened at other group companies were attributed to thediminished sense in safety management and shortfalls inworkers’ skills and awareness.
Therefore, Lion has worked to enhance equipment safety froma medium- to long-term perspective, with approaches from boththe hard (equipment management) and soft (operational management) sides.

Fair Operating Practices

In 2015, the number of labor accidents, including the number
at affiliated companies, was 21, increasing 10 from the previous
year. As with the previous year, the number of lost time accidents was three. The reason for the increased number of accidents is considered to be young workers lacking experience andexpertise on operations. We will increase awareness of safety byidentifying problems and enhancing training on safety.
The Lion Group including domestic and overseas affiliatedcompanies, will be committed to prevention of critical accidents, by strengthening its structure based on the Occupational Safety and Health Management System (OSHMS) and
Safety Design Guideline for Facilities, and promoting safetymeasures for production equipment.

Safety of Facility
The Environment

Based on the principle of “safety first,” Lion has established its
unique Health, Safety and Disaster Prevention Management
System for domestic group companies, which added our own
disaster prevention measures to the “Occupational Safety and
Health Management System (OSHMS)*2” based on the guidelines of Japan’s Ministry of Health, Labor and Welfare.

*2 Occupational Safety and

Health Management System (OSHMS)

A system to voluntarily conduct continuous safety andhealth management through PDCA.
CSR Report 201633

Ideal Vision

The
Environment

Contributing to the Development ofa Sustainable Society as an
Environmentally Advanced Company
Basic Approach

基本的な考えIn 2011, Lion announced its Management Vision (Vision our environmental slogan, “Everyday. For the Earth,” de方 rives. We will work on communication by increasing cus2020). As its Group-wide policy to become an “environmentally advanced company,” which is included in Vision
2020, we formulated our new environmental objective“Eco Vision 2020” in 2013.
As with “Eco Vision 2020,” our thoughts regarding environmental activities are represented in our environmental message “Lion and the Environment,” from which

tomers’ environmental awareness through our products,
in addition to achieving targeted values with the aim of“realizing a low carbon society,” “realizing a sound material-cycle society”and “realizing a society harmonizing
with nature.”
Everyday. For the Earth. (Japanese)
URL http://www.lion.co.jp/ja/csr/ecolion/

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

Environmental Guidelines
Lion will act voluntarily and proactively to reduce its environmental burden to the global environment in all processes ofbusiness activities from the development of products to the
procurement of raw materials, production, distribution,
sales, use by customers, as well as disposal. This will be donewith due consideration to “realizing a low carbon society toprevent global warming,” “realizing a sound material-cycle
society with maximum usage of recycled resources” and “realizing a society harmonizing with nature to conserve people’s health, natural ecosystems and biodiversity.”
1 Aiming for a Sustainable Society
Promote an environmental management system, and throughongoing maintenance and improvement of that system, protect
the global environment.
2 Complying with Legal and Other Requirements
Comply with the system of legislation, regulations and arrangements pertaining to environmental protection, and establish
and implement voluntary standards of conduct.
3 Setting and Verifying Implementation of Environmental Objectives and Targets
Correctly understand the environmental impact of our corporate
activities, and as far as technically and economically possible, establish objectives and targets for improvement, while at the sametime formulating, implementing and regularly verifying the statusof implementation of an environmental management program.

34

CSR Report 2016

4 Developing Environment-Friendly ProductsContinue aggressively with product development in tune with Lion’s own “Lion eco-standards” and in light of lifecycle assessments.
5 Reducing Environmental Impact Together with Our
Business Partners
Strive to reduce environmental burdens at all stages from purchase through provision of products to customers, in cooperation with suppliers of materials, outsourcing contractors, andsales companies.
6 Harmonizing with Nature
Conduct business activities while taking into account biodiversity
and air and water environments, and proactively address naturalenvironment protection activities.
7 Enhancing Environmental Protection Activities Basedon Uniform Understanding of the Guidelines
Disseminate the Guidelines to all Lion employees, including
those of its affiliated companies, raise awareness of environmental protection among them and bolster environmental management activities throughout the entire Lion Group.
8 Promoting Disclosure of Information
Seek to maintain and promote communication with stakeholders involved in Lion’s businesses. These Environmental Guidelines
are freely available to anyone upon request.
Revised January 1, 2013

Lion's CSR

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

Data on the environmental burden of group companies’ plants (overseas)
URL http://www.lion.co.jp/en/csr/pdf/2015/env_data_2015.pdf

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

Production
DivisionManager ofenvironment
management

Administrative /Sales Division
Manager ofenvironment
management

Each plant

Each office(General manager of production management department)(General manager ofgeneral affair department)

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

Affiliatedcompanies

Each laboratory

Legal Compliance

The Environment

In regard to revisions of environmental laws and regulations namely, the Act on the Rational Use of Energy, the Act on Promotion of Global Warming Countermeasures, the Act on Confirmation, etc. of Released Amounts of Specific Chemical
Substances in the Environment and Promotion of Improvements to the Management Thereof, the Act on the Evaluationof Chemical Substances and Regulation of Their Manufacture,etc., and the Waste Disposal and Public Cleansing Act - the Environmental Conservation Office collects information from administrative agencies and industrial associations, and thereafter
registers the information with a system using Intranet for information on chemicals-related laws to keep the related departments updated about such information. In addition, with our“waste management regulations” voluntarily established, we
have had in place a management system without omissions.
There were no violations resulting in a fine or other penalties during 2015.

Labor Practices

Lion acquired ISO14001 certification covering all its plants inJuly 2001. Subsequently, the certification has been reviewed
and renewed by the Japan Management Association Quality
Assurance Registration Center (JMAQA) every three years. It has
been verified that the management systems are continuously
operated in a proper manner, conforming to requirements ofthe standards. Including the plants of group companies in andoutside Japan, the Lion Group has obtained ISO14001 certifications and performed operations in compliance with ISO14001,
continuously pushing ahead with its management systems andenvironmental conservation activities.

Executive
Committee

Human Rights

Status of ISO 14001 Certification

Environmental Management Structure
Organizational Governance

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

Pollution Prevention[Data of environmental impacts of production sites in Japan] (Japanese)
URL http://www.lion.co.jp/ja/csr/report/pdf/environment-Management.pdf[Data of environmental impacts of Overseas production sites]
URL http://www.lion.co.jp/en/csr/pdf/2015/env_data_2015.pdf

Consumer Issues

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

Fair Operating Practices

Production activities conscious about air and water quality

Community
Involvement and Development* PRTR system

A system to measure, aggregate, and publicize
emissions of toxic chemical substances, etc.
CSR Report 2016

35

The Environment

Enhancing Group-wide Management of Chemical Substances
Chemical substances are indispensable for people to lead
comfortable and fulfilling lives. Failure to properly manage
chemical substances, however, can result in accidents that put
human health and ecosystems at enormous risk. In addition
to compliance with related laws and regulations, Lion strives

to ensure strict management of chemical substances at allstages from product development to use/disposal in accordance with our own independent standards.
Appropriately Handling Chemical Substances (Japanese)
URL http://www.lion.co.jp/ja/csr/env/enhancement/

Lion’s Chemical Substance Management
1

Product Development

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

2 Production

3 Transportation

4 Use and Disposal

Measurement andreduction of chemical
substance releases

Provision of safety information during transportation

Provision of information on
safety and handling ofchemical products

Engaging in Progressive Environmental Activities
Pursuing environmental targets ”Eco Vision 2020” in light of global issues
Achievements of Eco Vision V-2 (from 2015 to 2017) in the first year and future plans thereof
Eco Vision 2020 is conducted by dividing the nine years from2012 to 2020 into three periods, V-1 to V-3, each of three
years. 2015 was the first year of V-2 following V-1 in whichalmost all the set targets had been attained. As with the pre-vious years, all employees of Lion Group have been united inpromoting environmental activities. Accordingly, plans for
V-2 have been steadily performed in general.

Five key items
Greenhouse gas emissions from businessactivities in Japan
In 2015, we reduced greenhouse gas emissions by 41% (compared to 1990, emission intensity per unit total revenue),
more than 29% over the previous year, with integration of
production facilities and energy-saving activities conducted
at all offices and plants. We will continue to make efforts forachieving our targets for 2017 and 2020.

Greenhouse gas emissions from post-use
productions in Japan
In order to reduce the greenhouse gas emissions from postuse products, we are making products more compact andswitching from petroleum-based surfactant ingredients withplant-based ingredients that do not lead to an increase inCO2. In 2015, the emissions decreased by 49% (compared to1990, emission intensity per unit total revenue), slightly increasing on a year-to-year comparison, due to temporarychanges in the composition of our products. We will pushwith the same activities to achieve the set targets.

Greenhouse gas emissions from overseas
business activities
We reduced greenhouse gas emission by 0.4% (compared to2014, emission intensity per unit of production), failing to attainthe target of a 1 % reduction for each year. This was because
energy efficiency decreased due to the plants with lower production volume. We will work on more efficient production by
ensuring production volume according to production capacity.
36

CSR Report 2016

Water use in domestic business activities
In 2015, we reduced water used in domestic business activities by 45 % (compared to 2000, water used per unit total
revenue). The 2020 target of a 35 % reduction was attained
earlier than scheduled due to modification of the production
process, water-saving activities at all offices and plants, andrecycling of factory waste water discharge stated below.

Recycling of factory waste water discharge
In 2015, we completed construction of facilities to recycle
factory waste water and started operation there at Chiba
Plant, aiming to achieve the target of “recycling waste waterat multiple plants by 2020.” In 2016, we will begin the fullscale operation of the facilities, expecting to further reduce
waste water discharge and water consumption.

Achievements of Eco Vision V-2 (2015 to 2017) and target values of Eco Vision 2020

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

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

Within thecompany③Reduction ofgreenhouse gases
from businessactivities, overseas

Emission intensity per unit ofproduction
0.4% reduction (compared to 2014)

Emission intensity per unit ofproduction
1% reduction year-on-year(compared to 2014)

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

Outside thecompany④Reduction ofgreenhouse gases
from post-use
products, overseas

Reduction of 58 thousand tons
annually-

Reduction of 100 thousand tons
annually

Within thecompany⑤Reduction ofwater use inbusiness activities

Water use per unit total revenue
28% reduction (compared to 2010)
45% reduction (compared to 2000)
Absolute quantity
47% reduction (compared to 2000)

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

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

Outside thecompany⑥Reduction ofwater usage athousehold using
our products

Water use per unit total revenue
16% reduction (compared to 2010)
45% reduction (compared to 2000)
Absolute quantity
47% reduction (compared to 2000)

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

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

Waste⑦Zero emissions
within thecompany*1

Continued to attain zero emission
at all domestic production sites-

Zero emissions at all domestic production sites

Wastewater⑧Recycle of factory
wastewater
discharge*2

Completed construction offacilities to recycle waste water at
Chiba Plant-

Recycle factory waste water atmultiple plants

Procurement⑨Procurement ofplant-derived oils
that take biodiversity into consideration

Purchased RSPO*3-certified
palm oil derivative-

All palm oil derivative purchased
to be RSPO-certified

Biodiversity⑩Increase biodiversity
conservation
activities

Carried out in all Lion’s
factories and at offices ofsome affiliate companies-

Carried out in all domestic sites

Education

Awareness ⑪Environmental
andawareness andEducation
education forin theconsumers
Society

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

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

Greenhouse gases(overseas)
Water

Realizing a Sound Material-Cycle Society

60% increase in consumer
participation in our awarenessactivities (compared to 2010)

Consumer Issues

Emission intensity per unit total
revenue
2% reduction (compared to 2010)
49% reduction (compared to 1990)
Absolute quantity
50% reduction (compared to 1990)

Fair Operating Practices

Outside thecompany②Reduction ofgreenhouse gases
from post-use
products

The Environment

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

Labor Practices

Emission intensity per unit
total revenue
23% reduction (compared to 2010)
40% reduction (compared to 1990)
Absolute quantity
41% reduction (compared to 1990)

Human Rights

Emission intensity per unit
total revenue
24% reduction (compared to 2010)
41% reduction (compared to 1990)
Absolute quantity
43% reduction (compared to 1990)

Organizational GovernanceWithin thecompany①Reduction ofgreenhouse gases
from businessactivities

Lion's CSR

Target values for 2020

Greenhouse gases (domestic)

Target values for 2017

Realizing a Low Carbon Society

Achievements in 2015

Harmonizing with
NatureCategories

Community
Involvement and Development*1 The recycling ratio of total waste generation is 99% or more, which does not include residues of recycling.
*2 Wastewater from production processes*3 Roundtable on Sustainable Palm Oil

CSR Report 201637

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

Overview of Our Business Activities Taking Biodiversity Conservation into Consideration
Watershed*1 ecoBiodiversity on system in raw matewhich Lion relies
rial origination sites
Corresponding stages Procurement of raw
materials, packages,of value chain
and containers

Key natural
resources usedby LionPossible major
impact of ouractivities on
biodiversity

Watershed ecosystem where ourplants are locatedProduction

Watershed ecosystem where consumers resideUse by consumers

Disposal by
consumers

Plants used as
raw materials (oilpalms etc.)

Cooling water and raw
water used for equipment cleaning etc.,
which are used in plants

Service water at the time ofusing our products

Impact on naturalenvironments ofpalm oil growers
and local communities (water contamination andimpact on wildlife
habitats caused byillegal logging of
tropical forests)

Impact of undergroundwater intake by plants
on surrounding naturalenvironments and local
communities

Impact of water intake by
consumers on surrounding
natural environments andlocal communities

Impact of wastewater and waste
packaging materials
from consumers on
surrounding naturalenvironments andlocal communities

Development of water-saving detergents
Development of highly biodegradable detergents
Related information WEB②

Surveying environmental impact of
surfactants

Educational activities regarding care of water andnatural environments (forest
improvement activities under the name of Lion Forest,
conducting the Rainwater
Utilization Ideas Contest, andwater-related environmental
research support through theJapan Society on Water Environment).
Related information p49,WEB③,④

Promotion of 3Rs(Refills, condensingof content to makeproducts morecompact, and development of containers, e.g., recycled
PET(polyethylene
terephthalate)bottles
and containers withthin-wall molding)

Impact of wastewaterfrom plants on surrounding natural environments
and local communities-

Impact of light and odors
from plants on surrounding natural environments
and local communities

Biodiversity conservation activities

Activities
to reduce
risks

Activities
to expandopportunities

Promotion of
procurement ofsustainable palmoils (participation
in RSPO and purchase of RSPO-certified oils)
Related information p40-

Conservation of rivers
and other ecosystems
by implementing purification technologies ondischarged wastewater

Related information

WEB①

Reduction of plant wastes
Related information WEB②
Reduction of water consumption at plants
Related information WEB②
Conservation and monitoring of habitats on thewatershed where factories are located (Activities
to protect endangered
loggerhead sea turtles,
activities to maintainbiotopes, and activities tomaintain domestic woodlands (satoyama), etc.)
Related information WEB④

Related information

p46,WEB⑤*1 Watershed: Ecosystems including forests, rivers, domestic woodlands (Satoyama), tidal flats and beaches that are connected by water.

38

CSR Report 2016

Realizing a Low Carbon Society/ a Sound Material-Cycle Society
Lion's CSR

Lion has worked to reduce greenhouse gas emissions, as well as recycling and effective use of resources at each stage
from raw material procurement to disposal. Detailed data is available on our website. We will promote activities towardrealization of a low carbon society/ a sound material-cycle society.

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

Production

Substituting
plant-derived materials for petroleum resources
Related information

Improving energy efficiency
by reviewing production
processes, introducing energy-saving equipment at renewing facilities, and downsizing products
Related information p46

Office/Facilities

Company-wide energy-saving activities including theadministrative & sales division and the R&D division

Activities forrealizing a low
carbon society

Increasing the rate of modal shift during transportation of products such as
shifting freight from truck
to rail or ship.

Reducing power consumption during use of ourpower-saving products(involving decreasing thenumber of times of rinsing
associated with the use ofdetergents that only
require one rinse)

Substituting
plant-derived materials for petroleum
resources
Promoting 3Rs(Refills, condensingof content to makeproducts more compact, and development of containers,e.g., recycled PET(polyethylene terephthalate) bottles andcontainers with thinwall molding)Labor Practices

Distribution after shipment

Education to increase consumers’ environmental
awareness through products (The environmental
label is attached to products that meet the “Lioneco-standards”)
Related information p46

Disposal by
consumers

Human Rights

WEB②

Factories

Use by consumers

Organizational Governance

Overview of Our Business Activities Toward Realization of a Low Carbon Society/a Sound
Material-Cycle Society

Related information

p46,WEB⑤

Improving logistics efficiency
by increasing the transportloading rate, etc.
Related information WEB⑥Using plant-derived
materials (renewable
raw materials)
Using recycled materials

Factories

Promoting zero emissions
within the company
Reducing factory wastewater discharge
Use of recycled water

Office/Facilities

Promoting company-wide
green purchases
Related information WEB②

Use by consumers
Education to increase consumers’ environmental
awareness through products(The environmental label is
attached to products thatmeet “Lion eco-standards”)
Related information p46
Reducing water usage
during use of our water-saving products
Related information WEB②

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

Activities for realizing a soundmaterial-cycle
society

Production

The Environment

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

Related information

p46,WEB⑤

The websites below are all in Japanese.

Consumer Issues

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

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

CSR Report 201639

Ideal Vision

Fair Operating
Practices

Promoting CSR Activities throughout
the Value Chain
Basic Approach

In accordance with the “Lion Group Charter for Corporate
Behavior” and the “Behavioral Guidelines,” we havemade efforts to “engage in fair, transparent and freecompetition and proper transactions” while “maintaining
sound and proper relationships with governmental andpolitical bodies.” We also require business partners tocomply with laws and regulations.
Furthermore, Lion has expressed its support for the ten
principles of the UN Global Compact since 2009, and has
made it clear that the company is serious about
preventing bribery and corruption.

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

Aiming for Sustainable Procurement ofPalm Oils
We are actively promoting the utilization of plant-derived
materials as carbon neutral materials. As one of theplant-derived materials, we are using palm oil – the oil that is
produced in the largest quantity globally. Palm oils are produced mainly in Malaysia and Indonesia. Palm oil plants areproductive and the oils can be harvested throughout theyear, with the production volume increasing year after year.
However, at the sites of production, as a result of the sudden
explosion of production, a number of issues have arisen suchas the logging of tropical forests for development of new
farms leading to a shrinking of wildlife habitats. Also, due toinappropriate farming operations, various labor-management issues lacking social fairness have been raised, including terrible labor conditions with very little consideration for
health and safety, very low wages, improper treatment of

migrant workers, and child labor. Lion has been a member ofthe Roundtable on Sustainable Palm Oil (RSPO*1), which attempts to solve all the above-mentioned issues, since 2006.
In 2012, Lion Chemical Co., Ltd.’s oleochemical production
site passed the supply chain certification system inspection
and was certified as a plant that was allowed to handle RSPO-certified palm oils. As a result of this, Lion started procuring RSPO-certified palm oils in 2012. We set our target tocomplete the switch of all palm oils to be used to certified
palm oils by the end of 2015, and all the purchased palm oilbecame certified in July 2014. Subsequently, we have set new
targets toward 2020 as below and started purchasing RSPO-certified palm oil derivatives based on the target of 2015.
Targets

2015: Starting purchase of RSPO-certified palm oil derivatives
2020: All palm oil derivatives to be RSPO-certified
We will continue with our effort to procure sustainable palmoils into the future.
CERTIFICATE
CU-RSPO SCC-826807
Based on an audit according to the requirements stated in the RSPO Supply Chain Certification Systems, version November
2014 and a signed contract, Control Union Certifications herewith certifies that the facility(s) listed below are found to be incompliance with the RSPO Supply Chain Certification Systems, version November 2014. This guarantees that the criteria forprocessing RSPO certified palm oil products through one or more of the supply chain models as stated in the RSPO Supply
Chain Certification Systems have been met.
Name of certified company

LION CHEMICAL CO., LTD. OLEOCHEMICAL DIVISION

Full address certified company

22-1, BANNOSUCHO
762-0064 SAKAIDESHI
KAGAWA JAPANRSPO Number (if applicable)
Other sites certified (see annex 1)
RSPO registered parent company (if applicable) Lion Corporation
RSPO member number parent company
Scope of assessment

4-0012-06-000-00

Procurement, blending, hydrogenation, and reselling of Fatty Acid Methyl Ester

Start date certificate

20-12-2012

Expiration date certificate

19-12-2017

Date of first RSPO certification

20-12-2012

Certificate number

CU-RSPO SCC-826807

Supply chain model

Authorised signatory name
Ms. N Atiqah
Date of issue: 24-11-2015
On behalf of the Managing Director
Authorised signature

Identity Preserved (IP)Mass Balance (MB)Segregation (SG)
Issued byControl Union Certifications
Meeuwenlaan 4-6, P.O. Box 161,
8000 AD ZWOLLEThe Netherlands
tel.: +31(0)38 426 01 00
http://www.controlunion.com
certifications@controlunion.com

Control Union Certifications is accredited to provide RSPO Supply Chain Certification on 06/06/2014 (RSPO-ACC-014)
This certificate including the annex remains the property of Control Union Certifications and can be withdrawn in case of terminations as mentioned in thelicensee contract, or in case changes or deviations of the above-mentioned data occur. The licensee is obliged to inform CUC immediately of any changes
in the above mentioned data.
Only an original and signed certificate is valid.
Certificate version: C826807CU-RSPO SCC-01.2015*1 RSPO (Roundtable on Sustainable Palm Oil) URL http://www.rspo.org/

page 1/1

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

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

40

CSR Report 2016

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

Organizational Governance

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

2008

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

2013

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

Human Rights

2005

Lion's CSR

We require material suppliers and outsourcing contractors tocarry out self-checks based on the “Lion Group Supplier CSR
Guideline”*2 in order to facilitate responsible procurement
activities. Accordingly, we have been promoting to develop asystem to prevent risks from occurring in supply chains withregard to human rights/labor practices, the environment, fair
operating practices, consumer issues, and compliance.

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

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

Implementation ofself-checks
Material suppliers andoutsourcing contractors
answer questions online.

Labor Practices

Flow from asking for self-checks to sending feedback

Aggregate Results of Overall
Self-checks Based on the LionGroup Supplier CSR Guideline
Yet torespond11 %The Environment

Requested
improvement

Feedback andImprovement

Analyzing answersof self-checks

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

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

No need for
improvement

80 %Coverage:
Total of 633 companies(Domestic :544, Overseas :89)

Fair Operating Practices※We make efforts to help our business partners understand the importance of CSR
by explaining about trends of CSR when asking for self-checks. The self-checks
consists of three-stage checking criteria in accordance with the level of each initiative. We also provide a glossary.

9%

Outline of Results
80% of material suppliers have no need for further improvements in any items. 9% need improvement in one or more items.
11% did not respond.
For suppliers that did not respond, we will ask for their cooperation through conducting interviews to understand their status.

Consumer Issues

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

Guideline including the following 5 subjects and 21 items

1. Human Rights/Labor Practices
2. The Environment
3. Fair Operating Practices

4. Consumer Issues
5. Compliance

URL JapaneseEnglishChineseCommunity
Involvement and Development*2 Lion Group Supplier CSR Guideline

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

CSR Report 201641

Ideal Vision

ConsumerIssuesPursuing Customer Satisfaction by
Creating Safe and Trustworthy Products
Basic Approach

Lion carries out quality assurance activities at all stages, from the very beginning of the product creation
process until customer consumption of our products, inorder to provide products that will satisfy our customers. Specifically, by identifying key requirements foreach stage of corporate activities - product planning,product development, manufacturing, sales, and customer support - we are constantly pursuing newheights of customer satisfaction.
During product planning, valuable opinions received
from customers are well understood to identify customers’ needs.

During product development, the quality of developed products is verified in respect to seven metrics
including function and performance. Furthermore, we
endeavor to provide clear and easy-to-read labelingfor our customers.
During manufacturing, thorough quality control is performed within each process, and products that havepassed inspections are shipped with identifiable data foreach lot, which is effective for after-sale management.
A variety of information is relayed through explanations about our products and by providing samples towholesalers and retailers.

Product Development Incorporating Customer Opinions

Maximization of customers' satisfaction
Customers

Management

Customer support
Flow of developing safe, high-quality products

Product planning

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

Product development

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

Manufacturing

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

Sales

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

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

Enhancing Group-wide Quality Assurance System
Enhancing the mechanism to develop safe and high-quality products inJapan and overseas
To deliver on our promise of “offering superior products thatare helpful in the daily lives of people,” we are promoting the
manufacturing of safe and high-quality products that can satisfy our customers by putting in place a quality assurance structure based on the Quality Policy that we established in 2008.
In 2014, we established the “Pharmaceutical Affairs andQuality Assurance Department” by consolidating the phar42

CSR Report 2016

maceuticals division and quality assurance division, in orderto build quality assurance and development support structures across all functions of Lion including our overseas companies as well as a broad range of fields from consumables
and pharmaceuticals to food.

Developing Safe, High-quality Products

Product
Planning

Planning products that further satisfy our customers
Analysis/
Deliberation

Customer
Opinions

Lion'sproposal

Deliberation and approvalof the proposal
Organizational Governance

Product planning meeting

Preparing ofa product
proposalMarketing research

Executive Committee

・Marketing
research results

Marketanalysis・Concept

Customer
research・Target quality level

Product
Development

Human Rights

2

Lion's CSR

1

Building safety and quality into products

Deliberation oncontents and containers
Quality verification

Deliberation on andchecking of labeling

Discussion and approvalof development results❶ Function/Performance❷ Usability❸ Safety❹ Product stability❺ Environmental friendliness❻ Appearance (including design)❼ Compliance with laws andLabor Practices

Production Engineering Meeting

Seven metrics

Discussion and approval of development results

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

regulations and self-imposed standards

The Environment

Quality Verification Meeting
When starting development, the suitability At the completion of development,of quality objectives and matters deemed the validity of the developmental
crucial to development are confirmed.
product is confirmed.

Decision of commercialization

Process Safety
Verification Meeting
Safety assurance in the manufacturing
process is confirmed.

Fair Operating Practices

3 Manufacturing Quality confirmation under mass production
Preparation for initial
manufacturing

Manufacturing

Storage (shipment)

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

4 Sales

Provision of information about product quality

Quality control is performed in each process.

Product freshness is managed.

Community
Involvement and Development

Information is provided to wholesalers
and retailers to ensure communicationof product features and usage tocustomers.

Consumer Issues

Quality of raw materials,
packages, andcontainers is confirmed.

Information on products ismade available via displays
and samples at stores, andnewspapers, television, ourwebsite and other media.

CSR Report 201643

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

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

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

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

Required Safety
Assurance

Normaluse

44

CSR Report 2016

Usage as intended
by LionInitiatives to Listen and Respondto Our Customers
The inquiries made by customers are registered in a database
under a stringent personal information management structure and then shared at the corporate level via an information sharing system, with the exception of personal information, so that such information becomes available for
improvement in products and services and new product development.
Among this information, the information considered to affect customer satisfaction is passed on to top management ona daily basis via a VOC Daily Letter, and efforts are made toenhance quality by ascertaining the customers’ perspective
and through early consideration and handling of improvement measures led by the product planning department.
In 2015, we sent out 240 VOC Daily Letters. With a new
system established, we also improved the environment towidely collect and analyze consumers’ opinions not only
through telephone and e-mail but also via the SNS, in orderto more proactively take advantage of customers’ perspectives in our business activities. Furthermore, an organization
exclusively for analyzing and disseminating customers’ voices
was set up to enhance our capability to transmit information
to respective departments.
[VOC] Voice of Customers[SNS] Social Networking Service (Facebook, Twitter, etc.)

Current Status of Recallof Varsan Hyosatsu Jet
Because the “Varsan Hyosatsu Jet for Flying Insects”
and “Varsan Hyosatsu Jet for Crawling Insects” led tofire-related accidents, Lion has been voluntarily recalling such products since August 27, 2007.
As of February 2016, 1.48 million of these products
have been recalled (recall rate: 45.7%). We would
like to ask our consumers who still have any of theseproducts and reside in Japan to assist in the recall.
Customer Support for Recallof Varsan Hyosatsu Jet Sprays
Toll-free: 0120-670-225
Open: 9 a.m. to 5 p.m. (Japan time)(Except Saturdays, Sundays, public holidays, yearend/
new year’s holidays, and summer holidays)

Recommendation on Advertising by
the Consumer Affairs Agency, Government of Japan
With regard to its product “Tomato Su Seikatsu /Tomato Su Inryo,” Lion was deemed to haveplaced an advertisement which may have misledconsumers in daily newspapers during the period
from September 15 to November 27, 2015, andaccordingly received a recommendation from theConsumer Affairs Agency, Government of Japan.
Taking the recommendation seriously, Lion willfurther enhance its management system for placing advertisements and implement the system.

Provision of information that contributes
to a healthy and comfortable life
Research data

Organizational Governance

The Lion Comfortable Lifestyle Laboratories proactively communicates with consumers, aiming to provide more information that contributes to a healthy and comfortable life.

Opinions of consumers

Information collection
and accumulation
Creation of
usefulinformation

Transmissionof news

EventsHuman Rights

Comfortable Lifestyle
Laboratories

Meisters ofDaily Life
Information
Publications dissemination

Labor Practices

Experiment conducted by the Laundry Meister

Media, etc.

Communication with customers using “Lidea,”a website for information used in daily life

Lion Lidea

Documents

WebsiteContents of Solutions
for Issues in Daily Life

Meisters of Daily Life show how toresolve questions and problems indaily life.

Contents of LifeEntertainment

Proposals on new lifestyles are madeand ideas to make daily life fun areprovided in collaboration with local
government and companies.

SearchFair Operating Practices

Lidea Enriching lives and hearts.

Consumers

The Environment

Lidea is a Lion’s website for delivering lifestyle informationand sharing with consumers delightful ideas (tips and information) that make their daily lives more comfortable andenrich their hearts.
Lidea consists of two kinds of contents, in which accurate
information that is useful for consumers’ daily lives is provided mainly by five “Meisters of Daily Life,” specialists with expertise on lifestyle information.

Lion's CSR

Providing Information Useful for Daily Life and Promoting Educational Activities

URL https://lidea.today (Japanese)

To p ic s

Publication of a CSR communication booklet for consumers

Consumer Issues
Community
Involvement and Development

In March 2016, Lion published a CSR communication booklet“What are the Important Things in Daily Life? Let’s Look at
Them in Numbers!” aiming to communicate our CSR activities
to consumers in an easy and fun manner. Various social issues
that are closely related to consumers’ daily lives are indicatedwith numerical figures, and it is explained that Lion has madeefforts to resolve such issues through products, educational
activities, and provision of information. In addition, information useful for consumers’ daily lives is placed in the booklet.
We deliver this booklet at a variety of events related tocleanliness, health, and comfort, in which we come into contact with consumers.

What are the ImportantThings in Daily Life?
Let’s Look at Them in
Numbers! (Japanese)
URL http://www.lion.co.jp/
ja/csr/report/

The page onsocial issue
on oral health

CSR Report 201645

Consumer Issues

Offering Products and Information that Contribute to the Development of a Sustainable Society
Development of products with less load on the society and environment,
and educational activities
As a focus to minimize the number of containers andamount of packaging materials we use, Lion is proactively
promoting the 3Rs (Reduce, Reuse, and Recycle). For minimizing containers and packaging materials, we have evaluation items established for each stage of “procurement of
packages,” “distribution,” and “disposal” based on Lion’s
eco-standard from the perspective of product lifecycle.

Example of Environmental Label Attached to ProductsThis container
is made withapproximately
10% (by weight)
recycled plastic.

Lion’s eco-standard (Japanese)
URL http://www.lion.co.jp/ja/csr/ecolion/“CHARMY Magica“ (dishwashing detergents)

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

Reduction of Usage

Reuse

Recycle Wastes

Make containers
and packages
more compact

Increase refill
products

Proactively use
recycled materials

Promotion of Environmental Communication through Products

Plastic wastes can be reduced
by approximately 83% byusing “TOP SUPER NANOX”
refill. (Compared with thecontainer, by weight)“TOP SUPER NANOX” and its refill (super-concentrated liquid laundry detergent)

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

Approximately 67% of the content (organic ingredient) consists of plant material. Please visit our website for details.
“TOP Platinum Clear” (powder laundry detergent)

Promoting Information Security
Efforts for protecting personal information and preventing information leaks
In order to thoroughly protect personal information and ensure information security, Lion has established the “Personal
Information Management Regulations” which are in conformance with the “Act on the Protection of Personal Information,” the “Basic Policy of Our Information Management,”
the “Information Management Regulations,” and the “Information Security Regulations.” In addition, we have in place
the “Lion Group Social Media Policy” and basic guidelines tobe observed to make sure that we can disseminate appropriate information regarding our employees’ use of social media (social network service, blogs, etc.).
In 2015, with the aim of enhancing internal information
management systems, all employees attended e-learning on
revision of related rules, risks of social media, information
security, and the information management systems.
Lion Group Social Media Policy (Japanese)
URL http://www.lion.co.jp/smp.htm

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

46

CSR Report 2016

Ideal Vision

Community Involvement
and Development

Organizational Governance

Basic Approach
Lion works to solve regional and social issues incooperation with local residents, government, andcitizens’ groups.
In addition, by increasing opportunities for each
employee to participate in business-related social andenvironmental contribution activities, we foster humanresources that create new values on the basis of a highlevel of social and environmental awareness.

Human Rights

Championing the spirit of our founder Tomijiro
Kobayashi, which is to “contribute to society throughbusiness activities,” Lion engages in activities that
contribute to a healthy and comfortable society andenvironment with the aim of being helpful in daily lives
creating future value for everyone. As it is necessary to
co-exist with the locations of business facilities and otherrelated communities in order to continue our business,

Lion's CSR

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

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

Oral Health Eventof Tooth Brushing for Children

Educational activities
for preventive dentistry

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

The Environment

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

Water Resource
Conservation Activities

Labor Practices

Educational activities
for hygienic practices

LDH dental health activities

Activities by Meisters of Daily Life

Educational activities
for oral health

Environmental Field

Our Priorities
Co-existence with communities

Involvement of employees

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

Community
Involvement and Development

Environment

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

Consumer Issues

Health and Comfort

Fair Operating Practices

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

CSR Report 201647

Community Involvement and Development

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

Three Public Benefit Services of LDH
1. Oral health promotion projects
Promotion activities of oral health at all life stages
2. Research and investigative project
Investigation/research into the importance of oral healthin prolonging health span, and provision of information
on research results obtained through business and otheractivities to specialists and consumers
3. Educational and training projects
Holding of various seminars and lectures for health instructors and dental specialists

Elementary school that participated in an Oral
Health Event of Tooth Brushing for Children

Oral Health Event of Tooth Brushing forChildren
The Oral Health Event of Tooth Brushing for Children, started in
1932, is held every year for elementary school children during aweek designated as the “week of dental/oral health (June 4th to10th).” In 2015, a total of approximately 71,100 students of
1,302 elementary schools from across Japan and seven countries/
regions in Asia participated in the 72nd event and learned together about “healthy gums” in a very pleasant environment
through real-time distribution of images from the hall of theTokyo Dental Association.
Related information p19

in total About

990,000 participants

The Lion Foundation for Dental Health, a public interest incorporated foundation
URL http://www.lion-dent-health.or.jp/english/

Main Social Contribution Activities of LDH in 2015
Activities for oral health promotion
for mothers and childrenChildcare support programs in the area of“dental and oral health” for expectant mothers, infants, preschoolers, and their parents
Program: 69 venues, 70 times
Participants: 1,942 infants and preschoolers and 1,366 parents
in total About 1,140,000 participants

Activities for oral health promotion
for school children
Face-to-face educational activities with students and their parents and provision of support in activities run by health teachers
Program: 28 venues, 290 times
Participants: 16,115 students,
702 parents, and 828 health teachers
in total About 23,260,000 participants

Activities for oral health promotion
for adults (industry)
Education focused on prevention of a periodontal
disease and instructions focused on maintenance/
improvement of teeth and oral health provided to
employees of various companies
Sites: 243 venues, 497 times Diagnosed: 28,326 people
in total About 2,040,000 participants

Activities for oral health promotion
for the elderly (From 2007)
Provision of supports to help maintain oral functions to enable eating with one’s own teeth andmouth over a long time in the future
Program: 15 venues, 24 times
Participants: 691
in total About 10,000 participants

Treatment activities
Implementation of highly-professional and quality treatment and preventive dentistry activities
based on the concept of risk control dentistry
Diagnosed: 11,691 people
in total About 1,830,000 participants

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

48

CSR Report 2016

Educational Activities for Hygienic Practices
Lion's CSR

Lion has been working on activities to have proper
hand-washing practices take root mainly with the“KireiKirei” brand, aiming at maintaining the healthy
and comfortable lifestyles of consumers. Major areas
where the activities are conducted are locations of business facilities all over Japan, Ishinomaki City, which is anearthquake disaster area and an area closely connected
to our founder, and Sakaide City, where “KireiKirei” handsoaps are manufactured. We conduct the educational activities for hand washing at kindergartens, preschools
and public facilities.
We launched the “KireiKirei City – Sakaide” Project in2014 in cooperation with Sakaide City and Lion ChemicalCo., Ltd., the production base of our hand soap, and havepushed ahead with the project aiming at penetration andestablishment of the citizens’ hygiene practices.
With a policy of “employees’ voluntarily conducting
activities,” Lion is aiming that 100% of employees will
participate in hand-washing educational activities by
2050. During the period between 2012 and 2015, 227 employees (9%) took part in the activities. We will contribute to the establishment of clean and sanitary practices.

Organizational Governance“Arautan” hand-washing workout(a character created by Lion that teaches hand washing)Introduction of websites
Human Rights

Together with Community (Community
Involvement and Development) (Japanese)
http://www.lion.co.jp/ja/csr/community/

Lion’s Initiatives to Support the Reconstruction Workafter the Great East Japan Earthquake (Japanese)
http://www.lion.co.jp/ja/csr/reconstruction/“KireiKirei City - Sakaide” Project (hand-washing education activities)(Japanese)
URL http://www.lion.co.jp/ja/csr/community/washingLabor Practices

Water Resource Conservation Activities
Through “washing,” we have always been deeply involved with water. Lion is actively involved in forest maintenance activities and in the promotion of and education on the utilization of rainwater, which is a familiar water resource, as part of our water resource conservation activities.

Rainwater Utilization Ideas Contest 2015

Since 2006, Lion has engaged in improving the forest,
which is a water source, at the Lion Forest in Yamanashi
for the purpose of increasing employees’ environmental
awareness. In 2015, a total of 188 employees participatedin the forest maintenance activities as part of the new employee training and voluntary forest improvement activities (which took place three times).

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

Number of employees who
participated in the activities in total

1,096 employees

Total sum of entries in total

The Environment

Forest Maintenance Activities at the Lion Forest in Yamanashi

29,532 entries

Fair Operating Practices
Consumer Issues

Lion Forest in Yamanashi (Japanese)
URL http://www.lion.co.jp/ja/csr/social/forest/

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

Factory Tours

Details of
Factory
Tours in2015

Plants

Chiba

OdawaraOsaka

AkashiCommunity
Involvement and Development

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

Number of study tours

82

118

54

77

331

Study tour participants

1,988

2,819

1,531

2,174

8,512

Factory tour at Chiba Plant

CSR Report 201649

Third-Party Review
As mentioned in the Message from the Management,
the spirit of “benefiting society through business activities” and CSR management that is conscious about people’s “Health,” “Comfort,” and “Environment” would
be greatly significant to allow everyone to live each day
leading to a desirable future while solving various issues
in the chaotic global situation. In this Lion CSR Report
2016, major issues regarding the entire Lion Group
were identified, and the Group-wide activities including
overseas companies were reported in such a way thatreaders can further understand them.
As one of the effective communications, the Reportshows activities in each phase of the value chain. It also
discloses domestic and overseas group’s achievementsof the 2017 medium-term objectives set in the previous
year with the relevant pages of the Report and thewebsites which enables readers to easily understand.
With expanded contents on CSR activities in overseas
countries, Highlights, and voices from employees ineach region, a glimpse of how Lion brings a smile toeach consumer by solving issues in their daily lives
through its unique businesses can be gained.
As for consumers’ issues, I can see Lion’s efforts toproactively communicate with consumers through “Lidea” and the new CSR communication booklet. While increasing the number of eco-friendly products meeting“Lion eco-standards,” Lion is more actively conducting
activities in local communities by providing any generation with more opportunities to take part in, such as thepromotion of Toothbrush Recycling Program. As such,the circle of significant activities is getting wider.
Establishment of a special subsidiary to facilitate employment of people with disabilities, and the formulation of “Act for Measures to Support the Developmentof the Next-Generation Children Phase 5 Action Plan”
which requires collaboration with various parties showthat Lion puts importance on improving labor practices
and employees’ awareness, as well as efforts to create anenvironment in which each employee can actively work.
Lion also discloses the target rate of taking annual paid
leave and the target percentage of female managers. It
announced that it would aim to have female managers
accounting for 15% or more by 2020 in Japan and it reported that support measures therefore have been enhanced. In addition to this Report, I recommend readers
to visit Lion’s website on which relevant detailed information and voices of employees appear, in order todeepen their understanding about the activities.
For “Eco Vision 2020,” bearing fruits such as reductions in greenhouse gas emissions and water consumption through business activities, the Group-wide efforts
can be highly appreciated. I would recommend Lion
therefore to review approaches to achieving the current
goals and reset higher targets.

50

CSR Report 2016

From a viewpoint of risk management, countermeasuresagainst CSR issues should be taken before problems
happen, just like “preventive dentistry,” in order to prevent environmental and social problems from occurring
due to people’s and corporate business activities. While
it may not be easy to comprehend and report the situation of some points in complicated value chains especially in overseas countries, I expect Lion to enhance CSR
procurement of sustainable raw materials, as well as
confirmation and implementation thereof.
Companies that continue to provide new, valuable
and necessary services to society through their businesshave significant impacts. Human health is also related tohealth of the earth. As a first step toward “Changes beyond Changes” which allows people around the world
to stay mentally and physically healthy, it is wonderfulthat all employees can have more opportunities to takeon a challenge, for example, by the introduction of“Lion Challenge Cup-Innovation,” in which they can directly offer proposals to the management.
As ethical consumption has been recently one of the
major topics in CSR, I suggest that products’ values be
improved from various angles and that such improvement be communicated to consumers, through manufacturing safety and reliable products in a broad sense,
not only taking into account quality but also ecologicaland ethical viewpoints from the phase of planning anddeveloping products.
As a matter of fact, it might be a kind of miracle tolive each day. It goes without saying that Lion’s productsthat gently support us every day are part of our daily
lives. Until such products reach us, the natural environment and various people that we do not directly touchor see exist in the background of the developing andmanufacturing process.
In CSR activities, companies are required to know thefacts and take action, considering not only each stakeholder and the surrounding environment, but also theworld beyond them. I expect that Lion's hope, to approach each day in a positive and proactive manner, will
promote among all the people of the world who value
the quality of day to day life.

Environmental Expert,
Ethical Life Advisor

Manami Yamaguchi
Representative Director of FEM Co., Ltd
Chairperson of Environmental BusinessResearch Institute
Director of Research Network for the
Future of Woman and AgricultureFrom Lion
The origins of Lion’s approach to CSR can be traced to
our founding spirit of “Benefitting Society throughBusiness Activities.” Championing the spirit as our DNA,
we are aiming to contribute to continuous social development by pushing ahead with business activities under
our management vision. In order to realize this, withmajor CSR issues identified, we are conducting activities
in light of the medium-term objectives in conjunction
with the management plan. We have disclosed resultsof the Group-wide medium-term objectives for 2017 including domestic and overseas companies, which has
been evaluated favorably in the Third-Party Review. We
will continue to conduct our initiatives.
It was pointed out that improvement in comprehension and reporting about the situation is critical in orderto prevent environmental and social issues from occurring in corporate business activities, especially in overseas value chains. Lion has made efforts to achieve theobjective of “all palm oil derivatives purchased to be
RSPO certified.” In addition to enhancing measures using such an external mechanism, we will further encourage our business partners to participate in CSR activities by evolving the system of self-check for
promoting CSR, which is presently conducted by outsourcing contractors and material suppliers.
It was also pointed out that it is important to manufacture products from an ethical viewpoint and inform
it to consumers. To communicate with consumers
through products, Lion has attached an environmental
logo with environmental explanation on packages of

eco products meeting our voluntarily established environmental standard, so that consumers can select eco
products. Furthermore, efforts have been made to increase consumers’ interest through various contacts,
such as publication of a booklet that explains social andenvironmental issues in consumers’ daily lives in aneasy-to-understand way. We will manufacture products
which will help to solve social and environmental issues
throughout the life cycle, and continue to provide relevant information to consumers.
We received high evaluations on many of our efforts,
including proactive CSR communication with consumers,
providing various opportunities with employees to work
actively, and the results of environmental management
based on “Eco Vision 2020.” We will continue to conduct activities to protect healthy and comfortable lifestyles toward desirable future for everyone, and aim tosolve social and environmental issues through dialogues
and cooperation with stakeholders.

Director in charge of CSR

Kenjiro Kobayashi

Editorial Note
The major social responsibility that the Lion Groupshould fulfill is to make a contribution to solve socialand environmental issues in daily life through products,
educational activities, and provision of information, sothat people in Japan and other Asian countries can leadhealthy and comfortable lives for their entire lifetime.
In the “2015 Highlights,” we introduced educational

activities for oral health in Japan and overseas countries
and promotion of the toothbrush recycling program as
typical activities to fulfil the social responsibility.
We hope that you will develop a deeper understanding of Lion through information on our CSR website
and “Lidia,” a website for lifestyle information used indaily life.

Lion Corporation is a member of the
FTSE4Good Index, an equity index series
that is designed to facilitate investment incompanies that meet globally recognised
corporate responsibility standards.

CSR Report 201651

Published by

Lion Corporation
Published on: June 30, 2016

To be published next on: June, 2017

Inquiries
CSR Promotion Department, Lion Corporation 3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan
Website (Japanese): http://www.lion.co.jp/
Tel: 03-3621-6611
Fax: 03-3625-8625
Website (English) : http://www.lion.co.jp/en/ Tel: +81-3-3621-6611
Fax: +81-3-3625-8625