CSR Report 2011

Front cover:
Overall winners in the Lion TOP Eco Project Waterfront Painting Contest“The cool water in the river feels so nice!” by Ami Oogushi (Shizuoka Prefecture)“Clean and cool! It feels so good!” by Rie Ando (Kyoto Prefecture)

CSR Report

2011
T h e coin th eo l w a te rri ve r fe els so n ic

e!

Lion Corporation
Published:
October 31, 2011
CSR Promotion Department, Lion Corporation
Inquiries:
CSR Promotion Department, Lion Corporation(Social Responsibility Promotion Team/Environmental Conservation Office)3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan
Tel: +81-3-3621-6611 Fax: +81-3-3621-6269
Website: http://www.lion.co.jp/en/
Next scheduled publication:
October 2012

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

d co o l!

It fe e ls sogood!

Editorial Policy
Lion views its CSR Report as an important tool allowing theCompany to communicate its CSR initiatives and draw onstakeholder opinions while furthering corporate activities.
CSR Report 2011 details adhere to the following
editorial policy.
● The role of CSR communication tools was reaffirmed by opinions

voiced in the “Third-Party Review” of CSR Report 2010 and
the Stakeholder Dialogue. Lion aims to provide stakeholders achoice of tools in consideration of their objectives, focusing on
the coverage, the message (Lion’s unique CSR activity), and theappearance (easy-to-understand at the intuitive level).
● The CSR Report explains Lion’s approach to CSR and reports
on activities during 2010, primarily CSR initiatives undertaken
through business activities. Coverage is expanded on the
Company’s website.
● Lion celebrates its 120th anniversary in 2011 and two special
features “Culture Bearer for Oral Hygiene” and “Culture Bearer for
Cleanliness” look at the history of the Company’s contribution tosociety through business, and provide insight into future activities.

● Third-party reviews by outside experts have been included toprovide an objective assessment of the report.
● The booklet has been certified as a Color Universal Design andcompiled to reach as many people as possible in an easy-tounderstand manner (Japanese only).
■ The Environmental Reporting Guidelines (2007) of the Japanese
Ministry of the Environment and the Sustainability Reporting
Guidelines (2006) of the Global Reporting Initiative (GRI) werereferenced during compilation and editing of the report.
■ All pages of the report and past reports are available on Lion’s
website (the GRI Content Index is also provided).
URL http://www.lion.co.jp/en/csr/html/soc_csrf.htm■ Lion publishes a Site Report that introduces the environmental
activities of each individual business location for residents living in
vicinity of our facilities and plant tour participants.
URL http://www.lion.co.jp/ja/csr/report/ (Japanese only)
Environmental data for overseas plants is available on the
Company website.
URL http://www.lion.co.jp/en/csr/html/soc_csrf.htm

CSR Communication Tools

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

Website (CSR Section)
The aim of the CSR section of Lion’s website is to ensure
timely and appropriate disclosure of information requiredby customers, experts and all other stakeholders. As well as
providing more detail than the booklet, the website is also
designed for greater visual appeal.
URL http://www.lion.co.jp/ja/csr/ (Japanese only)

CONTENTS【Coverage】
Social aspects of this report deal mainly with Lion Corporation.
Environmental data coverage extends to the entire Lion Group.

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

【Period Covered】
January 1-December 31, 2010
(In places, activity reports refer to 2011 initiatives.)

Corporate Data… ……………………………………………… 2
Message from the President… …………………………………… 4

Lion and CSR………………………… 6
Stakeholder Dialogue… …………… 9
Special Features… ……………… 10
Special Feature 1: Culture Bearer for Oral Hygiene… ……………… 10
Special Feature 2: Culture Bearer for Cleanliness…………………… 14

CSR Management………………… 18
Corporate Governance / Establishment of Internal Control Systems /Risk Management / Information Security / Promoting Compliance

Customers and Lion……………… 20
Maximizing Customer Satisfaction / Approach to Safety and Reliability /Responding to VOC

Employees and Lion……………… 24
Approach to Utilization of Human Resources / Human Resource Diversity/ Promoting Work-Life Balance / Human Resource Development /Employee Health Management / Safety and Disaster Prevention Initiatives

Shareholders/Investors and Lion…… 30
Information Disclosure and Communication

Business Partners and Lion……… 32
Realizing Sustainable Procurement / Evaluating Raw Material Suppliers
from a CSR Perspective / Fair Transactions with Manufacturing Partners/ Teaming Up with Competitors on Delivery / Working with Wholesalers
and Retailers on Store Presentations

Society and Lion… ……………… 34
Lion’s Social Contribution Activities / Promotion of Skywater Harvesting/ Lion Forest in Yamanashi — A Five-Year Review / Social Contribution
Activities (2010) / Activities of Lion Foundation for Dental Health /Contributing to Society through Products

The Environment and Lion… …… 38
Eco Leaflet
The compact Eco Leaflet explains Lion’s environmental
activities to customers and all other stakeholders in astraightforward manner using diagrams and illustrations.
(Japanese only)

Reducing Greenhouse Gas Emissions……………………………… 44
Effectively Using and Recycling Resources… ……………………… 45
Considering the Environment from a Product-Oriented Perspective…… 46
Appropriately Handling Chemical Substances……………………… 50
Fostering Environmental Awareness within the Lion Groupand Environmental Communication… …………………………… 51
Biodiversity Initiatives… ………………………………………… 52

Third-Party Review… …………………………………………… 54
Editorial Note… ………………………………………………… 55

CSR Report 20111

Corporate Data
Corporate Name Lion Corporation
Address
3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644,
Japan
Foundation
October 30, 1891
Capital¥34,433.72 million (as of December 31, 2010)
President
Sadayoshi Fujishige
Employees
Consolidated: 5,972
Non-consolidated: 2,456 (as of December 31, 2010)
Net Sales
Consolidated: ¥331,100 million
Non-consolidated: ¥255,760 million (for the term
ended December 2010)
PlantsChiba Plant (Ichihara City), Odawara Plant(Odawara City), Osaka Plant (Sakai City), Akashi Plant(Akashi City)
Research
Hirai (Edogawa-ku), Honjo (Sumida-ku), Odawara
Facilities(Odawara City), Fukushima(Yabuki-cho)Sales Offices
Sapporo, Sendai, Tokyo, Nagoya, Osaka, Fukuoka● Financial Summary (Consolidated)

Net Sales(million yen)
400,000
350,000

330,380

341,717338,236

2006

2007

2008

321,947

331,100

2009

2010

10,036

10,5002009

2010

11,145

11,7952009

2010

300,000
250,000
200,000
150,000
100,000
50,0000(year)

Operating Income(million yen)
12,00010,000● Net Sales Breakdown by Business

8,000

Health Care Products

Other businesses¥133.6 billion（40.4%）¥6.6 billion（2.0%）
Chemical Products

4,000

0

Oral Care Products

2008(year)

Ordinary Income(million yen)

Beauty Care Products¥331.1 billion（10.4%）

10,000Fabric Care Products

Pharmaceutical
Products

8,000¥120.4 billion¥40.4 billion

6,000（13.6%）

2007（17.8%）

Consolidated
net sales (2010):¥45.2 billion

343
2006

¥58.9 billion¥165.6 billion（50.0%）

Living Care Products

8,277

6,000

2,000

¥25.0 billion（7.6%）
Household Products

8,905（36.4%）¥34.3 billion（12.2%）

12,00010,104
7,603

4,000

2,427
2,000
● Net Sales Breakdown by Location

0

Rest of Asia

2006

2007

2008

(year)¥50.2 billion（15.2%）Net Income(million yen)

Consolidated
net sales (2010):

7,000
6,000

¥331.1 billion¥280.8 billion（84.8%）* National and regional categories are based on geographical proximity.
* Major countries in Asia other than Japan are, Thailand, Korea, and China.

CSR Report 2011

6,041
5,465

5,423

5,000

Japan

2

5,540

4,000

3,040

3,000
2,000
1,000
0

2006

2007

2008

2009

2010

(year)

Beauty Care Products
Fabric Care Products
Living Care Products

Chemical Products

Special Sales

Household Products

Pharmaceutical Products

Health Care Products

Oral Care Products● Main Lines of Business

Advanced oral care products to help customers stay healthy

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

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

A well-rounded range of brands to meet growing self-care needs
Main Product Categories
Analgesics, cold remedies, eye-care
products, gum disease treatments,
denture products, anti-inflammatory
poultices, gastrointestinal medicine,skin-care products, fever cooling
sheets, tonics and nutrients,
insecticides, and prescription drugs

Products you can relax with for keeping your clothes clean and making them a pleasure to wear

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

Products useful for clean and comfortable living and dining

Main Product Categories
Dishwashing detergents,
household cleaners,
and cooking aids

Custom products tailored to meet individual needs

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

Performance chemicals based on interface science for a safe, sound, and clean global environment
Main Product Categories
Surfactants, fatty acid nitrogen
derivatives, glycerin, fatty acidmethyl ester, andelectro-conductive carbon

Surfactants

Precision parts cleaner and target items

Conductive carbon and application products

CSR Report 20113

Message from the President

Lion’s CSR Activities Endorsea New Brand of “Happiness”
A Society Offering SpiritualRichness and Security
The Great East Japan Earthquake on March 11, 2011
caused immeasurable damage like nothing we haveever experienced before. I take this opportunity tooffer prayers for the deceased and extend my heartfelt
condolences to all victims.
Lion was also affected, suffering damage to products
which had moved around inside warehouses, and partial
damage to plant facilities. Lion produces numerous
necessities for living within toiletry, over-the-counter
drug and functional food business segments, and as suchbears a social obligation to supply those products. We
had to embark on an all-out recovery effort and by theend of April had almost completely restored frameworks
for supplying products.
To hard-hit communities we provided relief funds
and supplies, including hygiene products, toothpasteand detergents, to the value of ¥100 million. Lion willcontinue to provide support through the provision of
products and cooperation with volunteer activities.
And in anticipation of power shortages in Japan thissummer, Lion has moved quickly to enforce power-saving
measures, which include in-house generation of power atplants and overhauling the working week for offices.
Japan now needs to look ahead to the future
and try to build a society resilient to disasters, where
people feel secure and live in harmony with theenvironment. So rather than restore everything to its
earlier state, we should instead focus on new community
creation. “Resilient to disasters” is anticipating andensuring readiness for all kinds of risk by establishingrobust systems and frameworks. “Harmony with theenvironment” means a safe and secure recycling-oriented
society achieved by keeping earth, water and air clean.
Founded in 1891, Lion marks its 120th anniversary
this year, and for that we must thank everyone withan involvement of interest in our activities. For 120
years, Lion has engaged in business based on a strong
commitment to society in keeping with the Company
Motto, “Fulfilling a Spirit of Love.” We have been
consistent in our desire to serve society followed up
through lifestyle recommendations and innovative ways

4

CSR Report 2011

to convey information.
Lion believes our service to society is required now
more than ever. We will undertake a fundamental
review of corporate activities, rebuilding our productdevelopment framework and business systems as we set
out to create a society where people feel secure.

Lion’s Corporate
Social Responsibility (CSR)
Support for the well-being of humans and nature
Lion’s role is to help create a sustainable, recycling-oriented
society offering spiritual richness through our support forhuman comfort and nature’s comfort. Health, comfort
and the environment are the key concepts of our threevisions — becoming the number-one company in the new
comfortable lifestyle support industry; becoming a leading
company in environmental friendliness; and building a
dynamic corporate culture.
Following the Great East Japan Earthquake, people arelikely to place greater priority on the quality of life. They willseek not only physical health, but to stay healthy in bodyand mind supported by family and social bonds; and notjust temporary comfort, but sustainable, environmentallyfriendly lifestyles.
Lion has accumulated a wealth of experience over the
past 120 years as a culture bearer for oral hygiene andcleanliness, and I am certain that by continuing to put
forward lifestyle recommendations based on new values,
anticipating changes in mentality and behavior, Lion canachieve sustainable growth.

A Leading Company in Environmental FriendlinessIn 2010, Lion set new environmental targets. Our CO2
emissions reduction targets are 30% or more by 2012, and
40% or more by 2020, compared to the 1990 level, andprogress has been good with targets for 2010 achieved.
Lion is also increasing use of plant-based ingredients — wewere the first in the world to industrialize use of detergent
ingredients made from palm oil (MES) and coconut oil (MEE)— and introducing them to markets around the world. Lion
products are developed in line with the Lion Eco Standards,
our aim being to create products that allow customers, intheir daily lives, to help protect the environment, by saving

water for example.
Lion’s business also has an inherent link to water and weare putting effort into the protection of water resources. We
have been maintaining forests in the city of Yamanashi since2006 as a way to protect water resources and commenced
biodiversity surveys in 2010. This year, 2011, is InternationalYear of Forests.

Human Resource Diversity
If Lion is to fulfill its role in the creation of a society
where people feel secure, each and every employee has
to be able to fully demonstrate their talent. This is an ageof diversity, and looking at the Lion Group as a whole
we see the employee makeup has changed in terms ofage, gender, nationality and employment style. For theLion Group to grow even more, or simply because ourbusiness is closely tied to people’s daily lives, it is crucial
that everyone in this diverse work force is able to workwith enthusiasm and vitality. Lion will make an all-out
effort to diversify human resources so we can make great
strides as a company where individuality abounds andvitality overflows.

Future CSR Activity
Lion is focusing increasingly on markets outside Japan,
especially in Asia where we aim to be the number-one
company in oral care and laundry detergent businesses.
In 2009, we declared support for the United Nations
Global Compact. Our support is ongoing and we will belooking to enhance CSR efforts in Japan and overseas.
Lion places high value on CSR communication and wewill continue meeting the needs of society through prompt
information disclosure and dialogue with stakeholders
while aiming for continued growth as a corporation.

Sadayoshi Fujishige
President and Chief Executive Officer

CSR Report 20115

Lion and CSR

Business Activities Supporting Healthy,
Comfortable and Sustainable Life
Lion’s CSR Approach
The origins of Lion’s approach to CSR can be traced to
the Company’s founding spirit of working for the benefitof people and society. This spirit lives on today, 120

years later, in the Company Motto. We believe it is oursocial responsibility to support healthy, comfortable andsustainable life through our business activities, with eachand every employee acting in accordance with the Company
Motto and the 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 thehappiness and lives of people.

Management Philosophy

1

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

2

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

3

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

Lion Group Charter for Corporate Behavior(Established on January 1, 2003 Revised on January 1, 2008)
We, Lion Group, shall, in addition to being economic entities designated to pursue profits through fair competition, keep ourselves associal entity which must make a contribution to society at large. We shall respect human rights and conduct ourselves with initiativein a socially responsible manner toward the creation of a sustainable society, observing both the spirit as well as the letter of all the laws
and international rules without harming the public interests both in Japan and abroad in accordance with the following 10 principles.
1. Principal Mission
2. Compliance with Public Rules
3. Disclosure
4. Environmental Issues
5. Promotion of Working Environment

6

CSR Report 2011

6. Contribution to the society
7. Confront Antisocial Activities
8. Contribution in Foreign Countries
9. Practice of Corporate Ethics
10. Resolution of Problems

● CSR Framework

Sustainable corporate and social development

Stakeholders

Lion

Customers p.20

Business activities (1)Health, Comfort, Environment

Employees p.24
Shareholders/Investors p.30
Business partners p.32

Communication
Dialogue (3)Cooperation

Establishment of a foundation
for business (2)Local communities p.34

Company Motto, Management Philosophy,
Lion Group Corporate Behavior

Global environment p.38

Global Compact

Business activities (1)Establishment of a foundation for business (2)Business activities supporting healthy, comfortable andsustainable life are the basis of Lion’s corporate social
responsibility. Celebrating the 120th anniversary of its
founding in 2011, Lion has long been a culture bearer
for oral hygiene and cleanliness, assisting healthy andcomfortable living through the development of lifestylepractices such as tooth brushing, laundry, dishwashing,
and the washing of vegetables. Consumers are beginningto value spiritual richness over material wealth —“health” refers to the mental as well as the physical,
while “comfort” is experienced as a positive outlook onlife and living, not just in terms of our physical senses.
Lion emphasizes consistent performance of good lifestyle
habits as a means to attaining sound body and mind, andcomfort, which extends to one’s social and environmental
well-being. To mark Lion’s 120th year, CSR Report 2011
contains a special feature summarizing past and current
initiatives (see pp.10-17).

Lion’s CSR approach is based upon the Company Motto,
Management Philosophy, and Lion Group Charter for
Corporate Behavior. Lion has also been participating,since 2009, in the United Nations Global Compact,
an international framework for promoting sustainablegrowth. This is an opportunity for Lion to assume evengreater responsibility and leadership, and we are advancing
activities in order to fulfill the 10 Principles. Efforts arealso being made to enhance corporate governance andcompliance the foundations for CSR management — toensure we have the trust of society (see p.18).

Dialogue (3)Customers, employees, shareholders and investors,
business partners, local communities, and the global
environment are our stakeholders. By responding
to society’s needs through information disclosure to
stakeholders and dialogue, Lion aims for sustainable
development of the Company and society.
Lion views dialogue with stakeholders as a valuable
opportunity to contrast corporate direction against the

CSR Report 20117

needs of society and confirm we have the sence ofbalance of a good corporate citizen. Opinion exchangetakes numerous forms.

●Selected Events Involving Dialogue with Stakeholders(2010)
Stakeholders
Customers

Event・Stakeholder Dialogue

・Labor-Management Meeting・Interaction with directors at
Shareholders andshareholders’ meeting
Investors
・Participation in events for investors
・Lion-kai general meeting
Business partners
・Lion Marketing Communication 2010
Local
・Plant tour
communities
・Events at individual business locations
・Participation in environment-related events
Global・Environment-related dialogue
environment
with communities

Relatedpages
P9

Employees

Plant tour
(Odawara Plant)

—
P30
P31
P33
P36
P51

* “Global environment” refers to dialogue relating to environmental
protection.

Lion’s CSR Activities and Issues(2010)
Category

8

Objectives

Major Activities

Management

See p.18-19

Customers

・Ensure two-way communication
・Strengthened CSR communication through cooperation between corporate・Strengthen quality assurance systems for overseas products communication divisions(e.g. Stakeholder Dialogue (p.9); participation in Eco-Products fair (p.51))
・Substantiate customer perspectives

Employees

・Establish good working environments
・Secure diverse human resources

・Achieved targets of Next Generation Support Act Phase 3 Action Plan (p.26)

Shareholders and ・Increase number of long-term shareholders
investors
・Increase number of individual investors

・Held briefings for individual investors (approx. 1,700 investors in total) (p.30)
・Received two awards for investor relations website (p.30)

Business partners ・Promote CSR procurement

・Continued implementation and analysis of business partner questionnaire (p.32)

Society・Foster awareness of oral health・Strengthen nature protection activities

Environment

See p.38 onward

・Increased number of schools participating online in Mass Tooth Brushing Exercise for
School Children (p.36)
・Added biodiversity aspect to forest maintenance activities (p.35)

IssuesApproach

In 2010, Lion primarily set out to achieve main objectives
established for each stakeholder category. Issues
remain in regard to initiatives for major objectives,
particularly overseas; for example, targeting customers— strengthening quality assurance systems for overseas
products and substantiating customer perspectives —and business partners — encouraging responces fromquestionnaires and fully enforcing procurement principles.

The first international standard relating to social
responsiblility, ISO 26000, was released in November
2010. Lion’s current CSR activities conform, and willcontinue to conform, to stances taken in this standard.
Lion intends to use ISO 26000 as a checklist for taking
stock of the Company’s CSR activities relating to sevencore subjects — corporate governance, human rights,
labor practices, the environment, fair operating practices,
consumer issues, and community involvement anddevelopment — as a way to determine the current status
of initiatives and identify issues that need to be addressed.

CSR Report 2011

Stakeholder Dialogue

What Are Some CSR Activities that Customers
Expect Lion to Pursue?
PurposeLion has held the Stakeholder Dialogue since 2008. In 2009,
dialogue on safety and reliability was held with experts in thearea of consumer lifestyles. The need for greater information
disclosure and better communication was recognized and
we are pushing ahead with related efforts.
In 2010, we invited customers, who are highly valued
stakeholders, to tour a Lion facility, learn about ourenvironmental protection and social contribution initiatives,and offer their opinions on our CSR activities.
Selected Opinions● I learned a lot and found it very interesting. It gave me

assurance and a sense of affinity with Lion.
● I enjoyed learning about Lion’s activities.
● Lion is making an effort and should do more to communicate

this. You need to enhance information disclosure via TV andyour website.
● I hope Lion continues this event. I would like to take part again.

Response to Feedback
From this year’s Stakeholder Dialogue, we realized
customers are very interested in environmental protection
and social contribution activities conducted throughproducts and customer interaction. But we also discoveredthat activities have not been adequately communicatedto customers. Our response has been to upgrade the
CSR section of Lion’s website, which is a vital medium forcommunication. Previously based upon the content of
the CSR Report, we have tried to make the website’s CSR
section visually more accessible for people who are notnecessarily experts. Besides further enhancements to thewebsite, we are looking to strengthen communication
with customers through appropriate outlets, including
e-mail newsletters, TV commercials and stores.

OutlineDate:

December 4, 2010

Venue:

Lion Corporation (Hirai Office)Participants:
65 customers who are readers of the Lion Lettere-mail newsletter (male or female, aged up to their70s, and mainly women aged in their 30s to 50s)
Schedule:(1) Tour of the Communication Center(2) Explanation of environmental protection and social
contribution activities(3) Customer ranking of activities that Lion should
pursue (questionnaire)(4) Q&A and summary
Participants from Lion:
Corporate Communication division (CSR Promotion
Department, Customer Center, Public Relations
Center), Research Planning and Administration
Department of Research and Development Headquarters
 SR communication: Collect and distribute about
Themes: ● C
CSR activities, etc.
 nvironmental protection activities: Eco Lion●E
activities, etc.
 ral health: Social contribution activities relating to●Ooral health, etc.

Experiment demonstrating thesolubility of active ingredientsin BUFFERIN cold medicine

Inspecting the rooftop biotope

Explanation of environmental
protection and social contribution
activities

A draw was held to give away
Lion-chan mascot merchandise

CSR Report 20119

Special Feature 1

Culture Bearer for Oral Hygiene——From Oral Hygiene to Systemic Health, Japan to the Rest of Asia——
Oral hygiene is Lion’s core area of business. Over the years,
we have developed many dentifrices providing new value
for Japanese people to match changes in their lifestyles.
Alongside development, effort has also been directed
into communication. Lion has helped to promote good
health among Japanese people by working to entrench
tooth brushing habits, providing them with correct
information about teeth and oral hygiene. The story ofFounding

Lion’s efforts to communicate information about oral
health closely follows the history of the Company’s
dentifrices and other oral care products.
Together with the history of Lion’s business, thisspecial feature provides insight into activities that Lion,as a leading company in oral care, has carried out topromote oral health among Japanese people, andoutlines a direction for future activities.

PromotingOral Hygiene
Western dentifrices were first introduced to Japan and manufactured on a large
scale around 1872. From 1895, living conditions began to dramatically transform.
Dietary habits also changed, but while more people were taking an interest in oral
hygiene, dentifrices were not necessarily satisfactory. Consumers and storeswanted products that were of good quality and cheap.

● Development and launch of high-quality, low-cost Lion Toothpowder

Lion Toothpowder

Consulting reference books, company researchers worked night and day studying
the ingredients and content ratios of dentifrices collected from across Japan and theworld, and after much trial and error, they managed to create a new product in 1896.
● Musical troupe undertakes promotion

In 1898, a musical troupe was formed to distribute tooth powder samples and callattention to its quality. Parades were held across Japan. This ambitious effort
helped spread word about Lion Toothpowder and sales gradually expanded withbacking from provincial distributors.

Promotional activities by this musical troupe
were the precursor to the use of songs inJapanese TV commercials.

● Social contribution activities through products

Packets of Lion Toothpowder with charity coupons printed on the back — theCompany’s original social contribution activity — went on sale in 1900. Customers
could send coupons to a charitable organization of their choice, such as anorphanage, and Lion would provide a donation according to the number of
coupons received. The aim of the program, which continued for 20 years, was tofoster the idea of charitable giving among citizens and help establish a permanent
foundation for charity projects.
● Establishment of a production system

Charity coupons printed on theback of the packet

10

CSR Report 2011

In 1897, the Koishikawa Factory replaced the original Shinjuku Factory as the main
plant for dentifrice manufacturing and by 1907 had a reputation as one of Japan’s
leading dentifrice plants. The plant produced dentifrice of world-class quality andwas often visited by inspection parties from overseas.

GrowthTeaching Tooth Brushing
Habits from a Young Age

Educational card included
with Kodomo Toothpowder
for children

Understanding it important for the prevention of caries to acquire tooth brushinghabits from an early age, Lion commenced dental examinations and educational
activities (provision of information). These activities evolved into current activities of
the Lion Foundation for Dental Health.

● Kodomo Toothpowder for children launched

In 1913, Lion launched Kodomo Toothpowder, Japan’s first dentifrice for children
available nationwide.

A supplement picture
picturre book that comes withthe product.This is the root of how Lion
promotes implementation andunderstanding about oral hygiene that canbe easily understood by children.

● Educational activities for children

In addition to children’s favorite colors and flavors, ways to appeal to the minds ofchildren using supplements like picture books and educational cards were
thoroughly researched. To mark the development of seven sizes of toothbrush for
infants to elementary school children, a calligraphy competition was held and some
500,000 submissions were received from across Japan. The initiative helped entrench
habits featuring in the submissions such as brushing teeth before going to bed.
● Establishment of the Lion Dental Clinic for Children

Lion Dental Clinic for Children

In 1921, the Lion Dental Clinic for Children — Japan’s first — was established withthe objective of enforcing tooth brushing and caries prevention among children.
Besides dental examinations, the clinic worked to promote implementation andunderstanding about oral hygiene through training courses for oral hygienists (dental
hygienists) who would enlighten and spread information about oral hygiene activities.

Educational activities through Lion Health Car

Lion Foundation for Dental Health* Caries Prevention Initiatives for Children(Establishment in 1964-March 2011)*Established as an incorporated foundation. A public interest incorporated foundation since 2010.

Mass Tooth Brushing
Exercise for School Children
1932-March 2011

Oral Health Activities forMothers and Children
1964-March 2011

Oral Health Activities at
Kindergarten and Schools
1964-March 2011

(Originally the Mass Tooth Brushing Drill for Children)

67 occasions
740,050 participants* in total*Total number of children

1,101,689 participants*

23,087,501participants*

in totalin total*Total number of children and parents*Total number of children, parents and supervisors

CSR Report 2011

11

Mass
Production

Delivering World-Class
Products to
All Japanese Citizens

White & WhiteA
Amidinternationalization and trade deregulation, Lion set out to produce
wworld-class quality toothpaste. Expanding the target market, the Company sought
tto reduce costs through high-volume production and sales.

● Production system enhancement

T production system was deemed insufficient for providing products throughout
The
JJapan and new plants were constructed — Odawara Plant (1964) and Akashi Plant((1969). State-of-the-art automation equipment was incorporated into production lines.

Odawara Plant in 1964

● Development of easy-to-use packaging

White & White, a product for making teeth shine and preventing staining, wasintroduced in 1970. This toothpaste was sold in a revolutionary laminated tube thatretained quality over long periods and was easy to use right to the end.

Expansion

Promoting Oral Healthwith Science andGreater Scope

Clin
Clinica
nica

Oral health problems increased with the diversification of people’s lifestyles fromthe 1960s. With a third of Japan’s population said to contract pyorrhea, people
began to seek different qualities in their toothpaste. Products based more upon
scientific research were required.

Dentor● Product development based on oral health problemssLion launched one new product after another, including
Dentor (1964), for prevention of pyorrhea, Clinica (1981),
containing enzymes for breaking down plaque, and the
Dentor Systema series (1993), for prevention of
periodontal disease.
● Provision of information through advertising“Do your gums bleed when you bite anapple?” The advertisement for Dentor told
customers how to check for pyorrhea.

12

CSR Report 2011

General knowledge about pyorrhea, plaque control,
periodontal pockets, and other aspects of oral
hygiene improved as Lion conveyed information
through product advertising.

The Dentor Systema series

Culture Bearer for Oral Hygiene——From Oral Hygiene to Systemic Health, Japan to the Rest of Asia——

FutureMouth

From Oral Hygiene
to Systemic Health

Lungs (respiratory disease)
Heart (vascular disease)
Pancreas (diabetes)

Bearing responsibility to promote oral hygiene, Lion has helped to establish toothbrushing habits and reduce caries cases among children in the 115 years since
introducing its first dentifrice product. Because it has recently been revealed that
periodontal disease influences systemic illnesses such as diabetes andarteriosclerosis, we now look to actively incorporate knowledge relating to oral
hygiene and systemic health into product development. Lion also aims to deliver
new value, contributing to healthy smiles, healthy eating and a positive outlook onlife through healthy mouths.

Uterus (underweight/pre-term birth)

Bones (osteoporosis)

From Japan to the Rest of Asia
In the rest of Asia, however, there are still many regions where tooth brushinghabits are not well established. Tapping experience from promoting oral hygiene inJapan, Lion aims to do the same across Asia and become the number-one oral carecompany in the region.
Toothbrush and toothpaste donations to
Asian countries

Supported by Lion

Aims of the Lion Foundation for Dental Health (LDH)
Lion has been carrying out oral health activities since the
Taisho period (1912-1926). LDH took over these educational
activities in 1964. In addition to promotion of toothbrushing habits and education about caries prevention
carried out since establishment, LDH has expanded thescope of activities to include prevention of periodontal
disease and now strives to promote the oral health of
consumers in all life stages, from infants through to theelderly. In recent years, the importance of maintaining ahealthy mouth has been emphasized by the spread of the8020 Movement* and revelations about the relationshipbetween periodontal disease and systemic health.

LDH aims to raise awareness about the vital rolemouths play in our lives — for eating, talking andsmiling — and implements
activities under the“Ken-Ko-Bi” concept,
stressing that maintaininga healthy body and mind
begins with the mouth.

* The 8020 Movement urges people to look after their mouths so they
will still have 20 teeth when they are 80 years old.

Taking LDH’s Oral Health Activities to the World
Oral health activities teaching matters such as theimportance of tooth brushing and the prevention of dental
conditions have international appeal—many people are inneed of oral health guidance.
LDH has acquired a wealth of know-how and skills
relating to oral health throughout a long history of oral

health activities. The foundation believes this expertisewould benefit the oral health of people all over the world.
LDH plans to use the skills and know-how developed
through oral health activities in Japan to actively pursue
activities overseas and contribute to the promotion of oral
health particularly among people across Asia.

CSR Report 201113

Special Feature 2

Culture Bearer for Cleanliness——From Human Comfort to Nature’s Comfort, Japan to the Rest of Asia——
Lion supplies many kinds of detergent, including laundrydryrdetergents like TOP, as well as soaps, shampoos, andhousehold cleaners.
Over the 120 years since the Company’s founding,from the days when notions about hygiene were weakthrough to the present day, we have helped instill aculture of cleanliness in society through the provision of
products and educational activities.
This special feature explains how Lion’s products haveaddressed the various issues that surface as society
develops, how they have contributed to the developmentof a culture of cleanliness, and the kind of initiatives Lion
has in store for the years ahead.

1891 (Founding)-1940s

Washing with Detergent(Early Notions About Hygiene)
The Company sold its first soap product in 1893. In
1920, we introduced the plant-derived laundry soap,
Plant-Derived Lion Laundry Soap with its superior
detergency and light odor. This was the first time inJapan that plants were used as a raw material forsoap, and“plant-derived”
used as aselling point.
From the1920s, laundry demonstrations were held around
Japan; laundry was not yet a common practice at thetime. In 1937, the Company published a manual onStandard home laundry procedures, written from ascientific perspective, and it
was used as a text in a
number of girls’ schools. Ever
since, Lion has conductededucational activities,
teaching laundry techniquesfrom a scientific perspective,
to help promote laundry as apractice (see p.17).
In 1951, Lion launched
Japan’s first fatty
alcohol-based synthetic
detergent, Lipon. Enablingeasy rinsing, Lipon was
introduced as a versatile
detergent that could be used
for laundry, dishwashing andmany other purposes.

14

CSR Report 20111950s

1960s

1970s

1980s

Hygiene Reform in Postwar Japan

Response to Water Environment Issues(Eradication of Parasites)(Foaming of rivers and lakes and eutrophication)

The Japanese diet began to westernize during the1950s, and people started eating vegetables and otherfood raw. But dishes were washed with cleanser orsoap, and vegetables only with plain water. At the time,
residual agricultural chemicals and parasite eggs fromorganic fertilizers were often present on vegetables.
Around 30％ of the population was infected withroundworm eggs.

The use of synthetic detergents became popular in the
1960s with the widespread use of electric washingmachines. However, rivers where household
wastewater gathered were covered with foam due tothe low biodegradability of these detergents andincomplete sewer systems.
Furthermore, eutrophication became an issue at Lake
Biwa during the 1970s. Fertilizers for fields, livestock
excretion and other living drainage were affected but
one of the causes was thought to be phosphorus
included in laundry detergents.

1956
Lipon F was introduced
as a neutral detergent
that could be used towash both vegetables
and dishes. The productearned the top
recommendation of theJapan Food Hygiene
Association and wasendorsed by the Ministryof Health and Welfare ina notice issued at aroundthe same time. Neutral
detergents enjoyed an
explosion in popularity
as a result, and within
10 years of the launch of
Lipon F the roundworm
egg prevalence had
dropped from 30％ toaround 2％.

● Roundworm Egg

Prevalence and Neutral
Detergent Production(%)
30

1962, 1980

(x103 tons)
60

20

40

10

20

0

56 57 58 59 60 61 62 63 64 65（year）

Neutral Detergent Production
Roundworm Egg Prevalence0

In response to these issues, Dash, a detergent using
AOS* that decomposed easily in rivers with excellent
biodegradability with excellent defoaming features, wasdeveloped and went on sale in 1962.
In 1973, a phosphate-free detergent was introduced
ahead of competitors. Additionally in 1980, Murin TOP,a detergent where enzymes and zeolite were blended tocreate a phosphate-free detergent that greatly enhanced
cleaning power, became a big hit. With efforts from theentire industry, the problems of foaming andeutrophication were headed for convergence.
* Alpha Oleﬁn Sulfonate.

Dash

Murin TOP

Lipon FCSR Report 201115

1990s1

2000s

Petroleum Resources andResource Conservation

Food Poisoning Cases Raise Needfor Disinfectants

As with the oil crises of the 1970s, consumers in the
1990s recognized environmental issues such as global
warming as problems carrying consequences for boththeir immediate lifestyles and the world at large.
Corporations initiated efforts to reduce use of
petroleum and other fossil resources, and effective
resource utilization became an additional consideration
for consumers of daily items like detergent.

In 1996, Japan was hit by a series of food poisoning
incidents involving the O157 strain of the E. coli bacteria,
and interest in disinfectants jumped. During the 1990s
and the 2000s, zoonoses (diseases communicable fromanimals to humans) and other infectious diseases thatspread across borders
became a hot topic
among consumers
worldwide.
Awareness about
cleanliness, today ameans for countering
new influenza
strains, is growing.

1991,1992
During this period—in 1991, Lion’s 100th year—theCompany constructed a new plant in Sakaide, Kagawa
Prefecture, to make surfactant ingredients fromplant-based palm oil. At the same time, Lion expanded
its lineup of products that could be advertised as
containing plant-based ingredients. The new products
were Spark (launched 1991), a laundry detergent
containing MES*1, and Shokubutsu-Monogatari (Plant
Story) (1992), a beauty soap made using 100％plant-based ingredients. A TOP brand laundry
detergent using 75％ plant-based surfactants, launchedin 2006, won the 16th Grand Prize for the Global
Environment Award*2.
*1. MES: Methyl ester sulfonate*2. Grand Prize for the Global Environment Award
URL http://www.lion.co.jp/en/press/html/2007006f.htm

Spark

16

CSR Report 2011

Shokubutsu-Monogatari(Plant Story)

1997
Lion responded with a new medicated soap brand —KireiKirei — which is now widely used. Educational
activities using picture books and kamishibai (lit. paper
theater) storytelling to encourage hand washing werealso implemented for children and their mothers,
helping to newly establish hand washing routines.

KireiKirei Medicated KireiKirei MedicatedLiquid Handsoap
Foaming Hand Soap

Culture Bearer for Cleanliness̶̶From Human Comfort to Nature s Comfort, Japan to the Rest of Asia̶̶

2010sWater Resources and Major Water
Use Reductions Combating Odors
Lion research shows that consumers are extremely sensitive
to how washed clothes smell. Meanwhile, consumers are
more aware about global environmental issues, and the
spread of environmentally friendly household electricalappliances has● Desired detergent benefits andtriggeredfunctions0
20 40 60 80 100（%）
growing interest
Removes stains
86
in save
Removesodors
60
electricity andRemoves sebum
52
water in the
No odor when half-dry
44
home.
(Source: Lion, September 2009; 824 respondents)

2010
In 2010, Lion launched TOP NANOX, a laundry detergent
containing a new surfactant, MEE*, made fromplant-based ingredients. TOP NANOX breaks down
nano-level stains invisible to the naked eye, removing
both odors. As detergent residues are effectively
removed due to excellent defoaming properties, lesswater and electricity is required for rinsing. Container
size, too, has been halved due to greater concentration,
reducing the environmental impact of container
manufacturing and product transportation.
* MEE: Methyl ester ethoxylate

TOP NANOX

120 Years and Counting…
From Human Comfort to Nature’s Comfort
Lion has continuously contributed to comfortable lifestyles
through washing practices in various situations. Now,
with establishment of a sustainable society a pressing
issue, Lion will push ahead with efforts to reduce
environmental impact, use of sustainable ingredients,
and research into methods for cleaning the environment,
primarily water, air and earth.

From Japan to the Rest of Asia
In April 2011, CJ Lion Corporation of Korea introduced
two highly concentrated laundry detergents — LiquidPower Beat 1/3 and Powder Power Beat 1/2. Lion aims tobecome number-one company in the rest of Asia, too,particularly in the laundry detergent business.
Lion is also introducing hand washing education
undertaken in Japan to the rest of Asia (see p.37).
Through products andeducational activities,
we will contribute tocleanliness in thelifestyles of Asia’s
Beat brand laundry detergents
consumers.

ers
s for Consum
ie
it
v
ti
c
A
l
a
Education
Besides the sale of detergent
detergent, Lion also offersolifestylerecommendations and educational activities, for example
by suggesting methods for extracting the greatest benefit
from products and incorporating them into daily life.
These functions are undertaken by our research institute.
Lion’s initiatives also have ripple effects for the industry,nd
and we contribute to efforts by the Japan Soap andtal andDetergent Association (JSDA) to tackle environmental
safety issues and educate consumers through theprovision of research data and other knowledge.
1933
1936
1957

Family Laundry Information Service Center established
hed
Lion Laundry Science Laboratories established
Lion Laundry Science Laboratories changed
its name to Household Science Laboratories
The present Now known as the Behavioral Science Research Institutestitute* In addition to the above, Lion joins the JSDA in addressing
common environmental issues.

CSR Report 201117

CSR Management

Strengthening Activities Central to Manage
CSR Activities to Earn Society’s Trust

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

Corporate Governance System
Lion has adopted a system of executive officers in orderto strengthen managerial decision-making and executivefunctions. Supervision of management is conducted
through a corporate auditor system.
Supervision and monitoring of management wasenhanced with the installation of four independent directors(two external board directors and two external auditors),
who satisfy the criteria of having no conflict of interest withordinary shareholders, as set by the Tokyo Stock Exchange,
and through regular meetings held between the president
and all external directors to exchange information.
Furthermore, a Management Evaluation Committee was
set up in October 2003 to ensure that evaluations andopinions by outside experts are reflected in management.
Countermeasures against large-scale purchasing ofLion shares (anti-takeover measures) were introduced
after approval at the Annual Meeting of Shareholders
held in 2009.

Establishment of Internal Web
Control Systems
Systems and provisions have been put in place toensure the appropriateness of Lion Group operationsin accordance with Japan’s Companies Act and theOrdinance for Enforcement of the Companies Act.*
With regard to systems for evaluating and auditing
internal control over financial reporting, as prescribedin Japan’s Financial Instruments and Exchange Act, Lionand the Lion Group have been establishing controls at
company-wide and business-process levels since July
2006. In December 2008, the Board of Directors passed a

18

CSR Report 2011

resolution on basic policy concerning internal control overfinancial reporting.
Evaluations of internal control effectiveness are carriedout by the Auditing Office, which reports findings to
the president and corporate auditors, as well as on aregular basis to the Board of Directors. Areas requiring
improvement are communicated to concerned divisions
and the progress of improvements is verified.
In 2010, Lion’s internal control over financial reporting
was deemed effective. A report on internal controls was
submitted to the Prime Minister in March 2011 together
with the Company’s securities report.
* Basic Internal Control System Policies
URL http://www.lion.co.jp/en/company/html/com0501f.htm

Risk Management Web
Lion is building up a management framework for dealing
with all the major risks that could occur in its business.
Deliberation focuses on issues with a large impact onmanagement, particularly the lowering of risks resulting
from accidents or disasters and the prevention of productrelated problems and establishment of initial response plans.
We are also advancing deliberation on ways to ensurebusiness continuity in the wake of a large-scale disaster,
including seismic strengthening of office buildings andplants and alternative arrangements for execution of
headquarter functions and backup production at otherplants in times of disaster.
When the Great East Japan Earthquake struck in
March 2011, a disaster response task force headed by
the president was set up at Lion’s Tokyo headquarters inline with the Earthquake Response Manual. After initiallyworking to confirm employee safety and conditions at
affected facilities, the task force set about formulating
and implementing recovery plans for affected plants, aswell as executing a pre-determined business continuity
plan to ensure delivery of products as quick as possible.

Information Security
Lion has established a number of guidelines andregulations to prevent information leaks. They are aLion Headquarters

Privacy Protection
Lion has established a privacy policy* and specificguidelines for management of personal information inaccordance with Japan’s Act on the Protection of Personal
Information enforced in April 2003. The Company has
been implementing these in a proper manner while
pushing ahead with establishment of related in-housesystems and education programs.
* Privacy policy
URL http://www.lion.co.jp/pp.htm

Promoting Compliance Web
The Corporate Ethics Committee, chaired by the
director responsible for corporate ethics, works to foster
compliance awareness within the Lion Group.
The basis for compliance is the Lion Group Charterfor Corporate Behavior. This is distributed in pamphlet
form to all people working for the Lion Group andmade publicly available via the Lion’s website. An annual
program of employee awareness surveys and regulareducational activities is also implemented, the latterincluding e-learning, lectures by outside speakers, andvarious training courses conducted at each workplace
and according to rank.
In 2010, rank-based training was complemented by ane-learning course on mental health, and the Legal Support
Caravan, a legal education program facilitated by Legal
Department personnel and outside legal experts as teachers,
was implemented for 48 departments and divisions.

maintenance and strengthening of compliance systems.
The fiscal 2010 survey (conducted in March 2011 with a
94％ response rate from around 4,000 employees) drew
opinions on a range of issues including problems withwork environments.
● Percentage of Employees Who Received Survey Feedback

0

20

2007
2008
2009
2010
(FY)

40

60

56.0 %

80

100

42.6%

72.5 %

(%)

1.4%

26.5%

80.3%

19.3%

87.7%

1.0%
0.3%

12.0% 0.3%

Feedback received

Not received No response

Contact for Enployee Consultation
and Internal Reporting
An internal reporting system, the Heart Hotline, has been
set up as point of contact for employee consultation on
instances of non-compliance they have discovered andwhich cannot or should not be reported through normal
channels. A pamphlet distributed to all employees,
including temporary employees, tells them about thesystem and its rules, such as instructions for making
contact and prohibition of unfair treatment of employees
using the system. Business partners can also use thehotline and contact information is available on the
Company’s website.
In 2010, there were nine instances of consultation orreporting, but no instances of grave misconduct were found.
● Heart Hotline – Consultations and Notifications (2010)

Other
44%

Compliance Awareness Surveys
All Lion Group employees are asked every year tocomplete a compliance awareness survey. Findings arereported to management and feedback is provided toindividual divisions in order to communicate issues within
the same workplace or company. This contributes to the

t
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basic policy on information management, information
management regulations, privacy regulations, information
security regulations, and guidelines for managementof information technology and equipment. Employees
also undergo e-learning programs each year to enhance
prevention of leaks.

Power harassment behavior
22%

Total cases:

9

Personnel/labor
management issues
11%

Accounting/asset
management issues
22%

CSR Report 201119

Customers and Lion

Developing Safe and Reliable Products forresponding customers’ demands

Maximizing Customer Web
Satisfaction

Furthermore, we endeavor to provide clear, easy-toread labeling so customers will understand features of
products and correct usage.
In manufacturing, standards and specifications are
established to ensure quality of design is achieved. In
trial manufacturing, the quality of raw materials, quality
in manufacturing, and manufacturing feasibility andmarketability through consumer testing are confirmed.
In manufacturing, quality is managed within each process,and products that have passed inspections stipulated instandards and specifications are shipped with data suchas manufacturing date and raw materials identifiable
for each lot. Manufactured products are stored inwarehouses and shipped on a first-in, first-out basis,
with freshness managed according to pre-determinedshipping deadlines.
Products shipped from plants reach customers via
wholesalers and retailers. Information for customers
relating to product features and usage is provided tothese wholesalers and retailers. Information about
products is also conveyed via displays and samples,
as well as newspapers, television and other media.

Lion carries out quality assurance activities at all stages,
from the very beginning of the product creation process
through to use by the customer, in order to turn out
products the customer will be satisfied with. Specifically,by identifying key requirements for each stage — productplanning, product development, manufacturing, sales,
and responding to customers — we are constantly
pursuing new heights of customer satisfaction.
In product planning, customer opinions and market
survey findings on awareness and needs are analyzed andconsidered before concepts are formed. Quality objectives
for ensuring customer satisfaction are set.
In product development, quality objectives are
considered in technical terms, as quality of design. The
quality of developed products is verified in respect toseven parameters: (1) function/performance; (2) usability;(3) safety; (4) product stability; (5) environmental
friendliness; (6) appearance (including design); and(7) compliance with laws and self-imposed standards.
● Flow of Product Development Incorporating Customer Opinion

Customer satisfaction maximized

Customers

Management

Customer support
Developing safe, high-quality products
1 Product planning
Customer opinions andmarket survey findings arereflected in planning in theform of quality objectives thatwill ensure customers are
fully satisfied.

2 Productdevelopment
Quality objectives aretranslated into technicalparameters as quality ofdesign. The product isdeveloped.

3 Manufacturing

4 Sales

Raw materials andprocesses are managed
to lead manufacture of
products with consistentquality.

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

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

20

CSR Report 2011

Features and functions of products are explained to customers● Developing of Safe, High-Quality Products

Customer
opinions

Designing products that will give customers greater satisfaction
Analysis/deliberation

Planning
proposals
Preparingproduct
proposalsMarketing researchMarketanalysis

Discussion/approval
Product Planning Meeting
Executive Committee
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Product planning●Marketing

research findings●Concept

Customer
research●Target quality level

Product development Building safety and quality into products
Deliberation oncontents and containers
Verification of quality

Deliberation on andchecking of labeling

Production Engineering Meeting
Outcome of development is approved after discussion.

Function/performance
Usability
Safety・・・Product Planning Meeting
Commercialization of product is approved after discussion.

Executive Committee
Commercialization of product is finalized.

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

Manufacturing

Outcome of development isapproved after discussion

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

Verifying quality in mass production

Preparations

Manufacturing

Storage(shipment)

Verification of raw
material quality

Sales

Quality evaluation intrial manufacturing
Verification of marketability

Quality is managed in each process.

Products are managed to ensure freshness.

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

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

CSR Report 201121

Customers and Lion

Responding to VOC Web

Safety of Raw Materials
The quality and stability of raw materials are approved
only after implementation of supplier surveys andconfirmation of past performance, compliance with laws,
regulations and industry standards, and environmental
compatibility. Before use, raw materials undergo quality
inspections using parameters and testing methods
according to category — drugs and food; quasi-drugs
and cosmetics; or miscellaneous.

Safety During Product Use

Recklessuse

Unforeseeable andunreasonable usage

Irregularuse

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

Mistakenuse

Usage not as intended
by Lion but whichmust be expected

Normaluse

Usage as intended
by LionRequired Safety
Assurance

22

CSR Report 2011

● Flow of Response to Customers

Inquiries
Comments
Requests

Reply
ActionVOCdaily letter

Directors,
corporate auditors,
executive officers

VOC
meeting

Database

Entire company

Information
sharing system

Flow of VOC● Scope of Safety Confirmation

Lower risk to acceptablelevel and provide warnings*1. VOC
Voice of Customer*2. Contact information
URL http://www.lion.co.jp/ja/support/contact/

Product development and improvement

Envisaging various usage styles, Lion conducts safety
evaluations of products based on a policy of averting risk
through product design.
Evaluations employ check sheets for confirming
whether safety, even in the case of “mistaken use,”
has been achieved through product design. Even in thecase of “irregular use,” we evaluate whether risk has
been minimized and whether the risk is acceptable andevaluation results are reflected in product safety, forexample with inclusion of sufficient warnings on labels
where necessary.
Guidance and advice from standpoints envisaging
various usage situations are provided through Quality
Verification Meetings, comprising members of other
different divisions. The aim is to prevent damage
caused by product use and lapses in the safety
confirmation process.

VOC*1 from customers are recorded in a privacy-protected
database, and then they are made available to the entire
company via an information sharing system after personal
information is removed and are emphasized for making
improvements and developing new products.
VOC deemed to have an especially strong influenceon customer satisfaction are reported to management
as the VOC daily letter, and planning divisions headefforts to improve quality through quick deliberation andimplementation of solutions.
In January 2011, a toll-free consultation line was
opened. The number to call can be found on Lion’s
website*2.

Customer Center

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

Customers

Approach to Safety Web
and Reliability

Overview of Inquiries andComplaints During 2010
Around 90,000 inquiries and complaints were received
in 2010 (a 3％ increase from 2009). Overall, 82％ wereinquiries about product usage, outlets selling Lion
products, product safety and so on; 8％ were productcomplaints, relating for example to dissatisfaction witheffects after use or flavor and scent; 10％ were related to
product problems, such as damage to flooring caused
by detergent.
Opinions and notifications from customers are valuable
and as such are communicated to related divisions forincorporation into future products and service.

In 2010, 242 VOC daily letters were issued — 103 inquiries,
96 product complaints, and 43 product problems. In thecase of product complaints and problems, the divisionin charge determines and reports on whether and what
measures are required, and when to implement them.
The quality assurance division follows up on progress made.
During 2010, 122 items were completed.

Customer Opinions Used inCommunicating Information
Lion’s online customer support*1 page provides answers
to frequently asked questions, solutions to problems andexamples of improvements made in response to customer
opinions, and is viewed by many customers.
The Lion Kids website*2 targeting children ofelementary school age or older was upgraded in 2010.
The website, which is a fun way of teaching children
about Lion’s products and the processes involved inbringing products to shelves, was awarded the Grandprix
in the student category of the 4th Japan Web Grandprix.
Lion will continue to send useful information
to customers.

Fostering a Culture of Utilizing
Customer Opinion
Lion is working to foster a corporate culture whereby
all employees, not just product development personnel,
consider and act upon customer perspectives. In 2010,
continuing from 2009, around 10 mid-career researchers,
and around 60 additional employees at director level orhigher from across the organization, fielded telephone
calls from customers as part of an exercise learning theimportance of thinking from a customer’s perspective.
Information is also shared by Customer Center staff,
who circulate around departments to report on customer
opinions. We will press ahead with efforts to change theawareness of employees in order to deliver products andservices created from a customer’s perspective.

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Quickening Response with VOC Daily Letter

Verifying the effects oftraining by director

Ensuring Satisfaction with Customer Support

Online customer support*1. Customer support
URL http://www.lion.co.jp/ja/support/*2. Lion Kids websiteURL http://www.lion.co.jp/ja/kids/

Recall Status for Varsan Hyosatsu Jet Spray
Voluntary recalls of Varsan Hyosatsu Jet Spray for Flying
Bugs and Varsan Hyosatsu Jet Spray for Creeping Bugs
have been implemented since August 27, 2007, in
response to combustion incidents.
As of March 31, 2011, the rate of recalled products
was 45.6%, or 1.48 million products. Please make sure
to return these products if you have any.
Contact number for Varsan Hyosatsu Jet Sprayreturns: Toll-free phone:
0120-670-225 (in Japanese only)
Hours: 9a.m. to 5p.m. (except Saturdays, Sundays andpublic holidays)[Measure 1: Questionnaire on customer support
and the website]
In 2010, we asked around 400 customers who had
contacted us to complete a questionnaire which, in addition
to questions asked in the past concerning the quality of
our response to inquiries, asked for opinions on the online
customer support service. While respondents were mostly
satisfied with the content of the online service, some said
the information they wanted wasn’t there or they didn’tknow where to find it. We will improve the service moreaccessible by reflecting in these opinions.
[Measure 2: Call center training]
Call center training is implemented to cultivate skills
for retrieving information about problems customers
are having that is useful in ensuring products are usedappropriately and easily, as well as skills for engaging incommunication with customers in order to ask about thebackground to inquiries or complaints. A questionnaire
conducted after the training revealed more than 90%
of customers were satisfied with the service, and more
information was received as a result. Information
provided by customers will be used to improve products
and service.

CSR Report 201123

Employees and Lion

Creating a Bright and Dynamic Workplace

Approach to Utilization of
Human Resources
Lion’s founder used to say, “Employees are partners in
the Company.” This idea is reflected in the Lion Group
Charter for Corporate Behavior, which refers to respectfor “human rights” and respect for the ”diversity,
individuality and personality” of employees. Lion respects
the individuality and personality of all employees andhelps them to hone their skills and abilities and stayhealthy in body and mind. Efforts are also being madein line with the Behavioral Guidelines to eliminate all
discrimination and ensure that employees can feel joy andcontentment in their jobs.
Issues in the workplace relating to human rights
are ascertained through annual risk management andcompliance activities, and internal audits.

Fair Treatment of Employees
Lion ensures fair treatment and tries to make working
for the Company rewarding for all employees. Systems
of management by objective and self-assessment are
employed for determining treatment for employees,
and a framework is in place for providing feedback from
regular evaluations and interviews by superiors to increase
the understanding and motivation of each employee.

Promoting Amiable
Labor-Management Relations
Lion organizes regular dialogue between employees andmanagement, placing importance on relationships oftrust. Labor-management meetings encourage mutual
understanding through reporting on business conditions
and exchange of opinions about working environments.
One recent outcome, continuing since 2009, has beena consensus on the joint pursuit of initiatives relating towork-life balance.
Operating under a union shop agreement, Lion andits workers’ union endeavor to build upon amiable labormanagement relations.

Human Resource Diversity
Lion has embraced diversity among employees ever since
its founding. Management has sought to fully utilize its
workforce, passing down a philosophy of encouraging
individuality, which contributes to business growth.
Lion has stepped up efforts in this area, reaffirming theimportance of diversity in light of major changes in thecomposition of the workforce and the need to respondswiftly to changes in the business environment. We
believe a combination of top-down direction, in the formof a declaration by the president, and recommendations
from employees is vital for instilling diversity managementin the corporate culture and generating results.

Diverse Human Resource
Promotion Committee
Lion set up the Diverse Human Resource Promotion
Committee in 2010. Three working groups have also
been established to consider areas that Lion considers
particularly important — female employees, rehired
retirees, and temporary employees.
Working groups involve opinion exchange among
employees, in the case of working groups on female
employees and rehired retirees, or managers, in the caseof the working group on temporary employees. Working
groups form proposals for promoting the active participationof diverse human resources and deliver recommendations
to management for incorporation into activities.

The working group on female
employees

24

CSR Report 2011

New employee training

Under the notion that employee motivation comes fromtheir ability to apply their talent, the Employee
Motivation Consultation Center was established in
February 2011 to help employees develop a positive
approach to their careers.
The center fields telephone inquiries from Lion
employees (including employees dispatched to affiliatedcompanies) and temporary employees, and provides
advice and information as required.

Employee Motivation
Consultation Center

former employees to rejoin the Company and apply
their skills. Anyone can apply, regardless of the reason
for resigning, length of service, or time elapsed since
resigning. Rehired employees can choose to participate ineither a Return to Career scheme, rejoining as a regular
employee, or a Return to Job scheme, allowing themgreater flexibility as full-time non-regular employees.
Taking advantage of this system, two former
employees rejoined the Company in 2010.
● Employee Data

Regular employees
New employees

Rehiring of Employees on Retirement
In April 2006, Lion began rehiring employees whoreached the mandatory retirement age. Three systems arein place: rehiring for standard jobs, whereby employees
apply for a desired position from a list provided by theCompany; rehiring for highly specialized jobs, whereby
the Company appoints employees with indispensable
knowledge and expertise; and rehiring for management
positions, whereby employees continue to apply their
management expertise in a managerial role. Presently,
approximately 64％ of retiring employees have applied
for reemployment.

Employing People with Disabilities
Lion wants employees to be able to fully apply their talentregardless of any disability. While immediate superiorsof disabled employees provide care in the form of
consultation, there is an established mentality of support
at Lion to which everyone in the workplace subscribes.
The disabled employee ratio in 2010 was 1.8％.

Establishment of System for Rehiring
Former Employees
Lion wants former employees who left the Company toreturn to work and contribute their services once again,
drawing on their career experience. In May 2009, we
introduced a system for rehiring employees who resigned
for personal reasons. The aim of the system is to urge

Rehired retirees

2008

2009

2010

(Male)

1,934

1,883

1,873

(Female)

546

566

583

(Male)

57

40

49(Female)

25

31

25

(No. of people)

87

125

147

(%)

3.4

4.9

5.6

Temporary employees

205

264

255

Female employee ratio

22.0

23.1

23.7

Female managers
Disabled employeesChildcare leave users(No. of people)

32

32

34

(%)

4.7

4.8

5.1

(No. of people)

45

48

44

(%)

1.8

2.0

1.8

(No. of men)

3

5

3

(No. of women)

36

38

35

(Male)

0

0

0(Female)

34

40

48

Average overtime per month (hours)

10.7

10.3

9.9

Annual paid leave used (%)

51.9

Reduced hours
for childcare

Departures within three
years of entering Company

45.2

48.6

(No. of people)

8

6

5

(%)

3.8

3.0

2.6

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Employee Motivation Consultation Center* “New employees” includes new employees hired mid-year.
* Numbers and ratios for rehired retirees from past years have been revised
due to a change in tabulation method. Ratio of rehired retirees = [No. of
rehired retirees] ÷ [No. of regular employees and rehired retirees]

Promoting Work-Life Balance
Lion strives to build environments where employees canwork dynamically and deliver results, placing value onbalance between work and private lives.

CSR Report 201125

Employees and Lion

Support for Childcare and Nursing CareWeb

Lion enhanced its support framework following revisions
to the Childcare and Family Care Leave Law* in June
2010, newly establishing nursing care leave and enabling
men to take childcare leave on more than one occasion.
* Childcare and Family Care Leave Law:
Officially, the Act on the Welfare of Workers Who Take Care of Children
or Other Family Members Including Child Care and Family Care Leave

NursingChildcare

Birth● Support for Childcare and Nursing Care

Maternity leave- Paid leave from six weeks prior to birth to eightweeks after birthSpecial leave(childbirth by
spouse)- Two days paid leave (bonus leave)

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

Reduced hours
for childcare- Up to two hours/day reduction in the workday until
the child finishes first grade

Exemptionfrom overtime- Exemption from overtime for employees with achild under three years old that applyChild sickness
leave

-N
 ursing care leave provide by day to nurse injuries
and sickness while the child starts school (paid leave)- Five days/year for one child or ten days/year for two
or more children that are preschool age

Nursing careleave andreduced hours
for nursing care

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

Nursing careleave

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

Accumulated
leave (nursing
of close
relative)-U se accumulated annual paid leave that has
expired (up to 60 days) for nursing a close relative*M edical and volunteer leave are available in addition toaccumulated paid leave.

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

As a result of support enhancements and making the
programs known to employees, the ratio of female
employees taking childcare leave has been 100％ inrecent years. The number of men taking childcare leave
has also increased, even among varying job types, due toeffective measures pursued since 2005.
These enhancements to childcare and nursing care
support were implemented according to action plans
formulated in line with the Act on Advancement of
Measures to Support Raising Next-Generation Children.
Lion has also been recognized by Japan’s Ministry of Health,Labour and Welfare as a company proactively supportingbalance between work and childcare since 2007. Phase
4 action plans were implemented in April 2011, throughjoint deliberation by labor and management, as well as
consultation with employees who are parents.

26

CSR Report 2011

Lion’s support is comprehensive and employees are
assured their chances for promotion or development will
not be hindered as a result of childbirth and childcare.

Next Generation Support
Act Phase 3 Action Plan
Period : April 2009 to March 2011
“Kurumin” logo recognizing
support for the next generation

Goals:
1. Have seven or more male employees take childcare leave during
the action plan period.
→Nine male employees took childcare leave following
discussions with employees who had taken theleave, briefings to managers, and a seminar given
by an outside lecturer.
2. Grant one day of scheduled paid leave in 2009.
→Raised target to “three days” in 2010 andachieved the target.
3. Establish an intranet environment allowing employees onchildcare leave to access corporate information.
→Arrangements have been made and 11 employees
currently use the system.
4. Introduce measures for rehiring employees who resigned for
personal reasons.
→Two employees have been rehired since
implementation in May 2009.

Promoting Efficient Work Styles
We aim to create suitable work environments and ensurethat work is carried out efficiently. This initiative is aided
by monitoring of hours worked using an objective
recording method (time cards). To reduce hours worked
and promote energy savings, each business location
designates one day a week as “no overtime day,”encouraging employees to return home on time. In
Headquarters Staff and Research divisions, a flextime
arrangement is used to enable employees to have greater
control over their work styles.
Efforts to create working environments where
employees can work dynamically and in good health were
implemented in the latter half of fiscal 2009. In 2010,
major reductions in the number of employees working
excessively were achieved. A total of 23 non-managers
worked more than 60 hours of overtime a month (a67.1-point reduction from fiscal 2008), while a total of
87 managers remained at work outside scheduled hours
for more than 80 hours a month (53.5-point reduction).
The percentage of annual paid leave used was 51.9％(6.7-point increase), indicating that employees are more
conscious about working efficiently.

Frameworks for Developing Tenacity

Lion has two volunteer leave systems: special volunteering
leave (up to five days), supporting participation in
Company-specified activities; and standard volunteering
leave (using accumulated paid leave), supporting
participation in activities of a personal interest. In 2010, 50
employees took special volunteering leave (77 days in total).

Lion has systems in place to support employees by allowing
them to fully develop their tenacity and creative potential.
Besides standard training programs, highly
motivated employees have additional opportunities
for skills development, including elective training andself-development programs. The diverse lineup of
self-development programs, in particular, helps employees
enhance their abilities.
One activity is the Lion Challenge Cup, an opportunity
for employees to present self-initiated group research
directly to Lion executives, and we have also commenced
initiatives for developing human resources capable ofsustaining overseas operations in this age of global business.
In 2010, 10 sales managers participated in a newprogram involving an overseas retail and distributionsector study tour. The aim of this program is to give
participants first-hand experience of different initiatives
and distribution frameworks maintained by Western
manufacturers and retailers.

Human Resource Development
Corporate Culture of Tenacity, Creativity,and Learning
Innovation has sustained Lion’s business activities ever since
the Company’s founding, and it is individual employeeswith the ability to practice “tenacity,” “creativity,” and“learning” who generate the innovation required toresolve business and technical issues. Lion aims to fostera corporate culture of tenacity, creativity, and learning by
developing human resources with the individual resolve
to overcome problems and create new value.

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Volunteering Leave

Education and Training Programs

Rank-based training

Management

New employee training

Management training

Mid-career training
Sales Division training

Specialized job-based
training

Administrative/Planning Division training
Research/Technical Division training
Production Division training

Global human resource training

Regular employees● Self-Development Programs

Study● Standard Training Programs

Overseas retail and distributionsector study tour

Distance learning Joint research

Lion conducts rank-based and specialized job-based
training for all employees, offering programs according toqualifications, position, age, and job type.
In 2010, leadership training was added to existingrank-based programs. The new program, in which 105
young and middle managers took part, aims to improveparticipants’ ability to response to customers and build
close-knit working environments.
Follow-up programs were also implemented forparticipants of new employee and mid-career rank-based
training programs to ensure content was adequately
learned and to aim for further advancements.

Overseas job training

Employees are sent to an overseas company or
research institute to engage in a broad range
of jobs, acquiring knowledge and skills for acurrent or future position.

Presentations atoverseas conferences

An opportunity for employees to present
knowledge or technology developed throughwork or learning in an overseas symposium asa way to nurture skills for global business.

Self-planned overseas
training

Employees visit Western nations withadvanced distribution and retail sectors to gain
firsthand, real-time insight into the impact of
globalization on distribution frameworks, thus
helping to broaden their outlook.

Domestic study

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

Research and study
groupsEmployee-initiated research and study relating
to their work.

Lion Challenge Cup

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

General education,business skills,
qualifications

Financial assistance is readily provided tofund self-development expenses to promotea dynamic corporate culture of tenacity,
creativity, and learning.

CSR Report 201127

Employees and Lion

Employee Health Management
Lion views employee health as a most important asset,
both for the Company and for employees themselves,
and acts in line with its Fundamental Health Management
Policy. The policy places a focus on fostering a high degreeof self-supervision among employees and promoting
comfortable working environments. As a result, almost
all employees report for annual health checkups andindividual post-checkup consultations (health guidance).
The existence of well-organized health management
activities involving dialogues with industrial physicians
and nurses has facilitated the in-house implementationof specific health checkups and guidance for employees
aged 40 and above, as enforced by law since fiscal 2008.

Providing for Specific Health Checkups and GuidanceLion implements specific health checkups and specifichealth guidance for employees aged 40 and above withthe cooperation of the Company’s health insurance
association in line with a three-year company-wide plancommenced in 2010.
Preventive activities aiming to lower the risk ofmetabolic syndrome have been implemented since2008 and were continued in 2010. These activities haveresulted in a decline in the percentage of employees
found to be suffering from metabolic syndrome (underhealth association criteria) despite the average age of
employees remaining roughly the same.
● Percentage of Lion Employees with Metabolic Syndrome

Employees with metabolic syndrome (%)
2008

8.0

2009

6.8

2010

6.7

*The percentage for 2009 was revised after closer examination.

Stop Smoking Initiative
A stop smoking initiative is implemented together
with the health insurance association. Since the endof February 2010, support has been provided to 65
employees who accepted the challenge to give up
smoking. The numberof smoking areas oncompany premises was
also reduced. These
efforts have led to acompany-wide decline
in the percentage
of smokers.

Poster for the stop smoking initiative

28

CSR Report 2011

Age 35 Health Seminar (LIS21*)
Lion puts efforts into preventing lifestyle diseases andspotlights age 35, which is generally prior to the emergenceof health problems or health risks. Believing that theestablishment of good health while still young leads toprevention of diseases later on, we have been holding
overnight hands-on seminars since 2001, giving employees
the chance to consider their own health and identify issues
they need to act on with an eye to the future.

Soaking up forest air as partof LIS21* LIS21:
Lion Life Innovation Seminar 21● Changes One Year After LIS21 Participation

Participants

No. with changed lifestyles

%

2005

110

99

94.3

2006

120

111

92.5

2007

86

79

91.9

2008

91

82

90.1

2009

91

89

97.8

* Participants who did not attend interviews with the nursing staff one
year later because they were on childcare leave, or for other reasons, areexcluded from percentage calculations. The number of participants withchanged lifestyles for 2008 was revised after closer examination.

Mental Health Initiatives
Lion views mental health as a major issue both in termsof running a dynamic corporation and managing risk, anddirects effort into prevention of mental illness. All employees
partake in annual stress surveys designed to make themnotice any changes in their mental health. Results are
returned individually by industrial physicians or nurses whooffer advice for working dynamically and in good spirits.
Ongoing educational programs for managers are also
implemented each year as we believe managers havean important role to play in helping employees maintaina healthy mind. In 2010, an e-learning program was
implemented to promote full application in the workplaceof techniques learned, such as identifying early signs anddealing with employees under one’s charge.
Besides consultations with industrial physicians andnurses, in-house consultations are additionally undertaken
by psychiatrists and clinical psychologists. A contract has
also been entered into with an independent organization
for providing telephone consultation and counseling for
employees and their families.

Company-wide Management of Health,
Safety, and Disaster Prevention
Lion’s safety activities are constant and are based on
a company-wide principle of “safety first.”
Ongoing safety management is achieved througha health, safety, and disaster prevention management
system. Activities include briefings at individual businesslocations of affiliated companies and research facilities,
held since 2009, and internal audits (system audits)
carried out at production sites by site representatives.
Lion always puts safety first and these initiatives will takeus toward the goals of zero accidents and zero disasters.
[Occupational Safety]
No major accidents or disaster-related damage involving
people or facilities occurred during 2010. There were no
lost time accidents and three accidents without lost time.
Risk evaluations were carried out on an ongoing basis,
with improvements made through confirmation of past
results. Since the establishment of a health, safety, anddisaster prevention management system, risk assessments
have been steadily advanced under the charge of business
operators toward the goal of eliminating risk factors.
Effort will now be made to establish procedures
to ensure all areas of risk evaluation are covered,contributing to safer working environments.

drills, and joint drills with municipal firefighters.
The 2010 annual joint drill consisted of an exercise
in setting up a disaster response task force at Lion
Headquarters and quickly restoring operations under
the scenario of a Tokai zone earthquake affecting the
Odawara Plant.
No company-owned office buildings or plants weredestroyed or suffered other major damage as a result of
the Great East Japan Earthquake in March 2011, partly
due to seismic reinforcements. Confirmation of the safetyof all employees also proceeded smoothly using systems
tested through drills.
● Number of Facility Accidents/Disasters

2006

2007

2008

2009

2010

0

0

0

0

0

● Number of Work Accidents (excl. commuting accidents)

10
8
6

5

4

Response to Emergencies
Each business location has established manuals for ensuring
the safety of workers and enabling swift and appropriate
action in times of disaster. Drills are also carried out ona regular basis and include safety confirmation drills,
evacuation drills, disaster leadership drills, firefighting

4

3

3

4

4

2

1

0

2006

2007

3

2

1

1

1

2008

2009

Production Division

Research Division(year)

2010

Office Division● Work Accident Frequency Rate* in Production Division

1.2[Safety of Facilities]
Facility inspections by independent organization havebeen introduced and assist facility-related safety activities
in various ways. At plants with chemical reactors, safetyof facilities is maintained through inspections conducted
on a regular basis according to the level of importance.
In recent years, investment priorities for all Japaneseplants, including affiliated company plants, were
determined based on quantitative evaluations using riskbased maintenance methodology. Investment in facilities
required to achieve safety is ensured. Furthermore,
accidents caused by changes to production facilities
or operating conditions are prevented by enforcing
confirmations stipulated in company rules.

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Safety and Disaster Web
Prevention Initiatives

1.10
0.88

0.9

0.84
0.72

0.6

0.74

0.71

2008

2009

0.3

0.00

0

0.00

2006

Lion

0.00

2007

(year)

2010

Chemical industry  * Frequency rate:
Number of people suffering lost time injuries ÷ Total working hours(unit: million hours)● Hours without Accident at End of 2010 (Unit：thousand hours)

Research Division

Production Division

Hirai

Honjo Odawara Fukushima Chiba Odawara Osaka

678

55

63

11

301

292

232

Akashi84

CSR Report 201129

Shareholders/Investors and Lion

Valuing Communication and Responding to
Expectations and Trust through Business Activities

Information Disclosure
and Communication
Lion discloses information in line with the IR Information
Disclosure Guidelines*.
* IR Information Disclosure Guidelines
URL http://www.lion.co.jp/ja/invest/policy/(Japanese Only)

Placing Value on Dialogue with Shareholders
An annual general meeting of shareholders is held eachyear at the end of March at the Kokugikan (Ryogoku,
Tokyo). Attendance at the 2011 meeting was 1,490 people.
Many questions were asked by shareholders during themeeting, and afterwards they were given the opportunity
to meet with directors and view a display of new products
to promote greater understanding of the Company.
Close communication with shareholders is also
advanced through the Lion Letter and a report toshareholders, sent out in September and March,
respectively, containing information on earnings,
new products, and other matters.

data and settlements of accounts in addition to an
overview of business activities and performance. An
investor relations e-mail service and an inquiry form
especially for investors are also available. The website
has been independently recognized* for the quality of
information provided and usability.
To foster better understanding of the Company by alarge number of individual investors, investor relations
leaflets containing general information about theCompany and, for example, information about new
product sample sets are created and distributed toindividual investors at events.
For overseas shareholders and investors, we operate an
English website and publish an annual report in Englishthat includes a message from the president, segment
results, financial data, and other detailed information.
* Investor relations website awards:
2010 Investor Relations Site Ranking Excellent Website - Gomez
Consulting Co., Ltd.
2010 Listed Company Website Quality Ranking Excellent Corporate
Website (Overall) - Nikko Investor Relations Co., Ltd.

Lion Letter
FY2010 Interim Report toShareholders (September 2010)

FY2010 Report to Shareholders(March 2011)

Enhancing Communication Tools
The “Investor Information” section on the Company
website was created to make information available toas many investors as feasible in an expeditious and fairmanner. The section was fully revamped in July 2010 tomake it easier for shareholders and investors to accessthe information they need.
The website facilitates access to information about
Lion, providing materials on business strategy, financial

30

CSR Report 2011

Information for investors on
the Company website

Providing Accurate Information at Right Time
Lion conducts a number of events to ensure that
corporate information is communicated in a precise, fair,
and timely manner to investors in Japan and overseas.
Besides earnings briefings, business briefings, newproduct briefings, and other presentations to securities
analysts and institutional investors in Japan, energy
is directed into overseas communication, including
participation in events organized by securities companies
attended by a large number of overseas investors.

Annual general meeting

We also hold regular Company introductions forindividual investors. During introductions, we explain ourbusiness and strategies and present a broad range of
information from environmental considerations and social
contribution activities to useful hints for living.
In 2010, 11 Company introductions were held
across Japan, attended by more than 1,700 investors.
Specifically, a plant tour was conducted in Akashi(September), during which quality control and othermanufacturing site initiatives were explained. Also,
environmentally themed investment forums (Februaryand August) included presentations made in person by
the president and employees in charge of environmental
action and product development to promote greater
understanding among investors.

Introducing New Products to Shareholders
One of Lion’s most important tasks is to provide a
consistent return to shareholders on an ongoing basis
by improving the Company’s consolidated earnings.
Shareholders owning 1,000 shares or more on December
31 each year receive a complimentary assortment ofpredominantly new Lion products the following March.
By introducing products we try to encourage shareholders
to become loyal Lion supporters.

New product sample set
sent to shareholders in
March 2011

Incorporating Feedback from Capital Markets
An important investor relations function is to share
feedback from shareholders and investors inside theCompany. Opinions received during events for individual
investors, results of questionnaires, and reports onmeetings with domestic and overseas institutional
investors are communicated as feedback to directors andothers inside the Company each month for reflection inbusiness activities.

Providing a Return to Shareholders
One of Lion’s most important tasks is to provide a consistent
return to shareholders on an ongoing basis by improving
the Company’s consolidated earnings. The annual dividend
to shareholders during 2010 was ¥10 per share, the samelevel as in 2009. In 2011, we plan to add a special dividendof ¥1 to the end-of-year dividend to commemorate the120th anniversary of the Company’s founding, bringing thetotal annual dividend to ¥11 per share.

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Lion’s booth at IR Forum2010 Tokyo (Aug. 28,
2010, hosted by TuvaluForest Corporation)

Lion is selected for the FTSE4Good IndexSeries, a global indicator for socially
responsible investing.
● Information Concerning Shares (as of December 31, 2010)

Other corporate investors 17.92 %Foreign investors 4.40 %Securities firms 0.31 %Number ofsharesNumber ofshareholders

Financial institutions
37.10 %

Individuals, Other(including treasury stock)
40.27 %

Individuals, Other (including treasury stock) 98.44 %Securities firms 0.09 %Foreign investors 0.34 %Other corporate investors 0.99 %Financial institutions 0.14 %CSR Report 201131

Business Partners and Lion

Contributing to a Sustainable Society in All
Business Activities, from Procurement to Sales

Realizing Sustainable Procurement● Efforts in Supply Chain Management

Raw material manufacturers

Approach to CSR Procurement
Lion carries out appropriate procurement of raw materials
and finished products in keeping with its Purchasing
Activity Principles and has promoted development of a
supply chain management system.
In 2008, we formulated the Procurement Principles*,a set of CSR procurement guidelines clarifying social andenvironmental considerations. We even implement a
regular questionnaire among business partners as a way
to achieve thorough communication of the principles.
* Procurement Principles
URL http://www.lion.co.jp/ja/company/about/policy/

Business Partner Questionnaires
To fully grasp the status of CSR activities pursued
by business partners, Lion has been implementing aquestionnaire since 2008 based on the 10 principles of
the United Nations Global Compact.
In 2009-10, we asked 481 business partners
worldwide, including major partners of overseas affiliatedcompanies and Lion Group companies*, to acquaintthemselves with the Procurement Principles and complete
a questionnaire. Responses were received from 354
companies (73.6％ response rate at the end of 2010).
On evaluating the responses, there were no major
problems for most of the companies surveyed.
However, we realized efforts by three companies wereslightly insufficient.
In 2011, we will request improvements by business
partners whose efforts were insufficient, and carry out
individual briefings and questionnaires for partners who
did not reply.
* Surveyed Lion Group companies:
Lion Chemical Co., Ltd., Lion Packaging Co., Ltd., Lion Trading Co., Ltd.,
Lion Hygiene Co., Ltd., Ipposha Oil Industries Co., Ltd., Lion Idemitsu
Composites Co., Ltd. (formerly Calp Corporation), Lion Akzo Co., Ltd.,
Lion Daily Necessities Chemicals (Qingdao) Co., Ltd., Lion Chemical
Industry (Taiwan) Co., Ltd., Lion Corporation (Thailand) Ltd., Southern
Lion Sdn. Bhd., P.T. Lion Wings, and CJ Lion Corporation.

Lion and affiliates

Manufacturing partners(Raw materials
procurement)(Manufacturing)(Distribution)

Wholesalers(Sale)
Retailers

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

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

Teaming Up with Competitors
on Delivery
Lion teamed up with competitors in 1989 to establish

32

CSR Report 2011

Lion Marketing Communication

Working with Wholesalers andRetailers on Store Presentations
Cooperation with wholesalers and retailers has beenenhanced by the establishment of the Customer
Development Department, which promotes the mutualcommunication and resolution of challenges that lie ahead.
Consistent with these initiatives to promote mutual
understanding with wholesalers and retailers, store
coordinators from Lion Group company Lion Field
Marketing Co., Ltd. regularly visit around 8,300 sales
outlets to ascertain the needs of business partners andcustomers, and work to develop novel and attractive
store presentations.

Lion-kai General Meeting

Spring New Product Presentation
The annual Spring New Product Presentation brings
together in one venue all our new products, fromhousehold items and pharmaceuticals, to gift products
and products for pets. Lion researchers are on hand toprovide clear explanations of products, sometimes withdemonstrations, while business divisions put forward
selling and presentation methods.

Lion Marketing Communication
Lion Marketing Communication 2010 was held in July2010 with the purpose of urging wholesalers and retailers
to support efforts under our brand development plan.
Over the two days, 823 wholesalers and retailers attended
the event. To complement product features alreadyknown and to spur realization of our brand development
plan within stores, the event provided practical marketing
ideas and information from a standpoint looking at
consumer trends.
[Research Presentations by the Behavioral Science
Research Institute]
The Behavioral Science Research Institute reported on
lifestyle research into ways to release psychological “brakes”
affecting recent consumer confidence and achieve freshhappiness from two angles — “Aging as it is experienced
in daily life,” and “Comfort within today’s lifestyles.”

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Planet Logistics Co., Ltd., for conducting joint deliveries
to wholesalers. The philosophy behind joint delivery is,“Cooperate on systems, compete in the store.” Manufacturers
compete fairly in stores, but cooperate on logistics in order to
cut logistics costs, improve the quality of logistics, and addressenvironmental issues. At the end of 2010, 18 manufacturers
were participating in the joint deliveries.
Fixed schedules, fixed volumes, bulk delivery, orderly
systems, and standardization, all achieved through jointdelivery, also lead to operational improvements andefficiencies within wholesale operations.

Lion’s distribution policy is founded on coexistence
and co-prosperity with wholesalers. We hold general
meetings of the “Lion-kai” forum to explain the
Company’s business, marketing, and sales strategies, aswell as, through opinion exchange, to promote common
awareness of one another’s roles in increasing customer
satisfaction. As of January 1, 2011, 256 wholesalers weremembers of the Lion-kai.
Research presentation

Lion-kai general meeting

CSR Report 201133

Society and Lion

Bettering Society and Lifestyles in Local Communities
through Health, Comfort, and the Environment

Lion’s Social Contribution Activities

conference and donates rainwater tanks to local communities
as part of communication and education efforts.

Lion’s central business themes — health, comfort, andthe environment — are also the foundation for theCompany’s social contribution activities. We conduct
activities in each area, placing importance on cultivating amentality of wanting to get involved among employees.
Much energy is directed into communication andeducation about oral care, as has been the case since theCompany’s founding, and about conservation of water
environment. These efforts are directly related to ourbusiness activities.
See pages 10-13 for more information oncommunication and education about oral care.

[Sponsorship of Rainwater Network Japan National
Conference]
Rainwater Network Japan was established in 2008 as anationwide organization for the sharing of information
about rainwater utilization among citizens, government,
corporations and researchers. Lion has sponsored theorganization’s national conference since its inauguration.
At the third conference in August 2010, Lion gave apresentation on its own initiatives.

Protection of Water Resources
Lion is inherently linked to water through the act ofwashing and we bear a responsibility to protect water
environments, for example through environmental
considerations in our products. Particular initiatives wefocus on are promotion of the use of rainwater — a water
resource we are all familiar with — and forest maintenanceactivities in the Lion Forest in Yamanashi, which play amajor role in the protection of water resources.

Promotion ofWeb
Skywater Harvesting
The world’s water environments are in disarray, with
regions across the globe frequently experiencing flooding
and drought. Lion is promoting the use of rainwater as asolution that will take us closer to a water-recycling society.
Sumida Ward, Tokyo, where Lion Headquarters is
located, is leading the way in skywater harvesting, withfacilities like the Kokugikan making use of rainwater.
Lion also works with the local community to promote
rainwater use, and Lion facilities — the headquarters
building, Hirai Office, and Lion Eco Chemicals Sdn. Bhd.
in Malaysia — use rainwater for watering and flushing
toilets, and as cooling water for plants.

National conference ofRainwater
Network Japan[Ryogoku Sakasa-kasa]
In June 2010, Lion and NPO People for Rainwater installeda rainwater tank in front of the Kokugikan, donating it to
Sumida Ward. It is called the “Ryogoku Sakasa-kasa” —literally, the “Ryogoku upside-down umbrella.” The tank’s
canvas roof collects rain in a tank to be used later by Lion
volunteers to water flowerbeds in the vicinity. Passers-by areeven able to manually pump water in the tank back up to
the roof in order to appreciate the water cycle. This is thefirst installation of a rainwater collection facility in a public
place and the first step in collaborative efforts by citizens,government and corporations to use rainwater in cities.
We will continue working with citizens and government todonate suitable tanks to communities nationwide.

Support for Skywater Harvesting
Lion supports promotion of skywater harvesting throughsponsorship of Rainwater Network Japan’s national

34

CSR Report 2011

The Ryogoku
Sakasa-kasa

President Sadayoshi Fujishige and volunteers at the start of Phase II activities at the Lion Forest in Yamanashi

Forests serve to absorb CO2, produce clean water, andcontrol flooding. In 2006, Lion established the Lion Forest
in Yamanashi with the objectives of creating benefits
for water environments by promoting sustainable
management and sound development of forests, andfostering environmental awareness among employees.
We are advancing forest maintenance activities by Lion
volunteers and use of paper made from forest thinnings.

Lion Forest in Yamanashi Area andForest Maintenance Activities
The Lion Forest in Yamanashi is an expansive forest ofaround 65 hectares (about the size of 90 soccer fields)
located in Yamanashi City, Yamanashi Prefecture. It
was opened as the prefecture’s first corporate forestry
promotion project following the conclusion of a forest
maintenance agreement.
Phase I of activities from 2006 to 2010 involved
thinning, planting, clearing of underbrush, and buildingof walkways where it was urgently required. Besides
forest maintenance, thinnings are used for craftwork, and
we also conduct Forest Biodiversity surveys. As of 2010,
around 500 people had participated as volunteers, newemployees undergoing training, or administrators.
The area of maintenance will increase from 2011
under Phase II and employees who have yet to take partwill be asked to join in.
● Lion Forest in Yamanashi — Maintenance Area

Mizukuchi,
Yamanashi City
Yamanashi City

Yamanashi
Prefecture

Lion Forest in YamanashihiPhase I planting
Phase I thinning

Initiatives Supporting Forest Biodiversity
In June 2010, Lion started joint efforts with NPO
Earthwatch Japan to carry out tracking of wildlife thatwill contribute to biodiversity conservation. The activity
involves searching for signs of wildlife and recording
them along with information on their location, and wehave gathered data for studying the impact of forest
maintenance on flora and fauna. In 2010, 12 employees
volunteered for two surveys.

Achievements[Use of Thinnings for Publications]
Lion creates the CSR Report, in-house magazine andpamphlets using thinnings from the Lion Forest in
Yamanashi under a 3.9 paper system*. Around 34 tons
were used in 2010.
* 3.9 paper system
Domestic forest thinnings are often not used because of the hightransportation costs. A 3.9 paper system is an initiative whereby the party
creating the publication bears the cost of transporting the thinnings.

[Contribution to CO2 Reductions]
In March 2011, Lion received a forest
development and CO2 absorption
certificate from Yamanashi
Prefecture after absorbing 1.7 tonsof CO2 through thinning, planting
and underbrush clearing activities inthe Lion Forest in Yamanashi during
fiscal 2010.

Yamanashi Prefecture
forest development
and CO2 absorption
certificate

Lion Values Interaction with Local Communities

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Lion Forest in Yamanashi — Web
A Five-Year Review

Lion interacts with residents in the Mizukuchi district
around the Lion Forest in Yamanashi and holds a treeplanting exercise each spring with the children of Yawata
Elementary School. Lunches are also arranged with the
Mizukuchi women’s club, who teach how to makeho-to- noodles, a popular dish of the region. Ties were
deepened in September 2010 when the women’s club
visited Lion Headquarters for a seminar as apart of theirstudy tour.

Phase II planting
Phase II thinning

CSR Report 201135

Society and LionSocial Contribution Web
Activities (2010)

Activities of Lion Foundation
for Dental Health

In 2010, Lion again implemented a wide range of activities
in the areas of health, comfort and the environment.
● Selected Social Contribution Activities (2010)

March･Presented Student Best
Poster Award (Lion Award)
at Japan Society on Water
Environment (JSWE) annual
conference･Held lessons during spring and summer holidays to teachelementary school students and parents living in vicinity of Tokyo
and Osaka facilities about hand washing, tooth brushing, andgargling (March and August)● Selected Activities (2010)

Oral Health Activities forMothers and Children
LDH supports child-rearing through oral healthactivities for infants and their parents.

･Hosted 9th Lion Rugby Festival at
Chiba Plant
April

May

For many years, Lion has supported the Lion Foundation
for Dental Health (LDH; founded 1964), which became apublic interest incorporated foundation in October 2010.
LDH continues to contribute to society through activities
in the four areas of oral health, research, examinationand treatment, and communication, in cooperation withdental associations, universities, government authorities,
and other parties.

50 locations, 50 occasions
Participants: 864 small children, 1,031 parents

Oral Health Activities at
Kindergartens and Schools･Presented Lion Awards, supporting association
activities relating to preventive dentistry anddevelopment of young researchers (May, July,
September, and October)

LDH provides direct guidance activities forkindergarten and school children and their parents
and supports activities of health supervisors.
488 locations, 618 occasions
Participants: 4 4,029 kindergarten and school children,
2,841 parents, and 2,225 health supervisors･Sponsored 12th Japan Water Award

Oral Health Activities
at Workplaces･Implemented Sumida River

Fireworks Project, inviting
residents of children’s homes towatch Sumida River Fireworks
Festival

July

Advice is provided to workers, principally
relating to periodontal disease prevention andoral health care and promotion.
242 offices, 502 occasions
Recipients: 29,910

August･Provided support for Rainwater Network Japan’s national conference･Held science education program for elementary school students in
Edogawa Ward, Tokyo･Held tooth brushing lessons for

September

Oral Health Activities for Elderly
LDH provides support for maintenance of oral
functions so the elderly can continue to eat using
their own mouths and teeth.

children in Thailand

57 locations, 57 occasions
Participants: 1,567

Examination and Treatment
Highly specialized examination, treatment, andpreventive dentistry activities of a high quality
are provided in line with the concept of risk
control dentistry.

･Contributed to development ofnext generation through support
for charity baseball event for kids
December (Children’s Dream Fund)

Recipients: 12,964

Mass Tooth Brushing Exercise
for School Children● Plant Tours in 2010

Plant

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Chiba

OdawaraOsaka

Akashitotal

No. of tours

85

130

68

65

348

Participants

2,056

3,365

1,815

1,915

9,151

CSR Report 2011

LDH holds this fun event for teaching elementary
school students about the importance of oral
health and how to clean teeth.
Participating schools: 139 (incl. online participation)
Participants: A pprox. 10,000 children (incl. online), and950 students from 16 dental hygienist schools

Lion has advanced business and social contribution
activities around three themes — health, comfort, andthe environment. Through our products, we contribute tosociety together with customers.

Support for Pink Ribbon Campaign —BATHTOLOGY
Lion has been supporting the Pink Ribbon campaign
to eliminate breast cancer since 2008 through salesof our BATHTOLOGY in-bath skincare brand, which
prevents skin from becoming dry after bathing. Between
September and December 2010, we ran a campaign toraise funds for stamping out breast cancer. A special markwas included on the package to indicate our support for
Pink Ribbon and a portion of proceeds was donated tothe campaign.

BATHTOLOGY body washes (two on left) and bath additives (two on right)

Contributing to Society through TOP
The Lion TOP Eco Project is named after TOP laundry
detergent. One initiative of the project is the Japan
Clean Water Foundation, whereby ¥1 is donated toward
river protection activities for every carton of TOP sold.
In 2010, during the third such campaign, we donated¥10,095,168.
Another activity is the Waterfront Painting Contest.
The aim of the contest is to urge children to think aboutfamiliar water environments. A total of 6,413 submissions
have been received up to and including the third contest
in 2010. Winning entries for 2010 appear on the cover ofthis report.

Fight Against Germs Project — KireiKirei
The “Fight Against Germs” Project is conducted throughKireiKirei products and aims to promote hand washing,gargling and disinfecting.
Consistent with hygiene
education in the past, activities
are pursued around threeobjectives — learning, thinking,and communicating.
The “Fight Against Germs” Project[Learning (at Kindergartens)]
The “Chase Away Germs” Rally for kindergarten children
aims to promote hand washing, gargling and disinfecting
habits from an early age. We send kits containing stickers
and posters to kindergartens, and use fun ways to checkthat children are washing their hands, gargling anddisinfecting well. Between 2008 and the end of 2010,
more than one million children participated at some
5,000 kindergartens.
[Thinking (at Elementary Schools)]
The aim of the KireiKirei “Staying Clean Together” Contest
is to create opportunities for children to think about theimportance of hand washing and gargling. Slogans andpaintings with hand washing or gargling themes werereceived from elementary school or younger children
from across Japan. A total of 263,691 entries have been
received up to and including the 8th contest in 2010.
[Communicating (to Everyone)]
Lion donates ¥1 to the United Nations Children’s Fund
(UNICEF) for every KireiKirei product sold under its “Circleof Beauty Surrounding Asia” campaign. Donations
have been used to build sanitation facilities and provide
education on hygiene at elementary schools in Myanmar.
Donations made in fiscal 2010 came to ¥10,013,593.
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Contributing to Society
through ProductsChildren washing hands
before a meal on Global©UNICEF Myanmar/WASH/2010
Hand-washing Day
Assistance was provided toan association promoting
protection of rivers in
Hasami, Nagasaki Prefecture

CSR Report 201137

The Environment and LionA Leading Company in Environmental Friendliness
Promoting Society’s Coexistence with Nature

Environmental Considerationsin Product Creation

which, after use, are easily biodegraded and do notpollute rivers, lakes or other waterways.
The broad scope of Lion’s environmental protection
efforts includes support for academic pursuits andresearch, as well as environmental activities carried out
with customers, and it continues to expand.
Our ongoing efforts in environmental protection
will contribute to the creation of a sustainable, lowcarbon and recycling-oriented society, and help promotecoexistence with nature.

Environmental initiatives are essential for a company
like Lion providing products for day-to-day living. Lion’s
business has an inherent link to water through theact of washing, and we make efforts to reduce thevolume of water used and wastewater released during
manufacturing, minimize the amount of water customers
need during use of our products, and create products● Ongoing Environmental Protection Efforts by Lion

1960s
Introduced laundry detergent withexcellent biodegradability inresponse to foaming of rivers.

1970s
Introduced phosphate-freedetergent containing no
phosphorus, a cause of
eutrophication.

Dash(1967)

Murin TOP(1980)

1980s
Introduced resource-efficient,
low-impact compact detergent
in response to global
environmental issues.

1990sHigh TOP(1988)

Introduced detergent
made using renewable,
carbon neutralplant-based ingredients.
Spark (1991)

Consideration of Water Environments
in Product Development
Manufacturing:
Minimized water usage and wastewater release during manufacture

Use:
Minimized the amount of water required for use by customers

After use:
Excellent biodegradability, no impact on water environments
when released after use

38

CSR Report 2011

Excellent
biodegradability
TOP Platinum Clear

Bath water OK(water savings)
Single rinse(water savings)
TOP NANOX

Brighti h W

Excellent defoaming(water savings)
Of
Ofuro no LOOK (bath(b th cleaner)lLion Forest in Yamanashi

Lion’s Environmental Activities

Environmental Management System(Eco Lion Activities)

Eco Lion activities are environmental initiatives Lion
carries out in all its business activities, taking into
consideration every stage from research and development
to raw material procurement, manufacturing at plants,
marketing, logistics, and sales, through to household
use and disposal. The entire Lion Group advances
environmental activities centering on five initiatives.

The purpose of Lion’s environmental management system
is to identify, evaluate, and rectify adverse effects on
the environment associated with our business activities,
products, and services, and to facilitate ongoing
improvements in our environmental protection activities.
Ongoing improvements will be achieved throughimplementation of the plan-do-check-act (PDCA) cycle
in line with the Environmental Guidelines.

Environmental Guidelines*

Environmental Management Structure*

Lion’s Environmental Guidelines adhere to the spirit of theLion Group Charter for Corporate Behavior, which states,“We shall play positive and active role in creating the
Sustainable Society, harmonizing economic development
and environmental protection.” The Environmental
Guidelines are a clear statement about the Company’s
stance in undertaking Eco Lion activities and our efforts,
among other endeavors, to develop eco-friendly products,
engage in business activities with due consideration to air
and water environments and biodiversity, and to lower
environmental impact throughout the supply chain.

Lion has established an Environmental Action Promotion
Committee comprising members from production,
administrative, sales, R&D, and headquarters staff
divisions, to coordinate cooperation on environmental
matters by all employees. The committee reviews
Company-wide business activities from an environmental
protection perspective and takes steps to ensure legal
compliance and setting of voluntary standards and targets
in addition to ascertaining progress made.
* Environmental management structure (Japanese only)
URL http://www.lion.co.jp/ja/csr/env/management/* Environmental Guidelines (Japanese only)
URL http://www.lion.co.jp/ja/csr/env/guide/● The Five Eco Lion Initiatives

Reducing
greenhousegas emissions

Effectively using
and recycling
resources

P.44

Fostering
environmental
P.51
awarenesswithin the Lion GroupP.45

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

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Considering theenvironment
from a product- P.46
oriented perspective

Appropriately
handling
P.50
chemical substances

CSR Report 201139

The Environment and Lion

Legal Compliance

Status of ISO 14001* Certification

Lion complies with all environmental laws, ordinances andother regulations, and we ensure thorough management
according to our own independent standards.
Waste treatment contractors must satisfy criteria
stipulated in waste management regulations in order
to be selected by waste supervisors at each site. The
premises of waste treatment contractors are inspected ona regular basis to verify conformity to the criteria.
In the past, we have used equipment containing
polychlorinated biphenyls (PCB). This equipment is stored
securely in line with legal requirements and graduallydisposed of through Japan Environmental Safety
Corporation (JESCO).
A soil survey conducted after the closure of a researchbuilding at Hirai Office revealed specified hazardous
substances, such as lead and arsenic, in concentrations
exceeding limits stipulated by the Soil Contamination
Countermeasures Act. These findings were reported to
the Tokyo Metropolitan Government. We will continue
to act appropriately in accordance with the law and incooperation with the authorities.
Wastewater is constantly managed to ensure thatstatutory limits on wastewater are observed. This involves
improving the reliability of wastewater processing
facilities, strengthening and ensuring management during
processes, and conducting emergency drills.
Adjustments are also being made to frameworks inline with revisions to related laws — namely, the Act on
the Rational Use of Energy, Act on Promotion of Global
Warming Countermeasures, Pollutant Release andTransfer Register (PRTR) Law*1 and Chemical Substances
Control Law*2.
There were no infringements resulting in a fine orother penalty during 2010.

Lion acquired ISO 14001 group certification covering all
its plants in July 2001. Certification was reviewed andextended by the Japan Management Association Quality
Assurance Registration Center (JMAQA) at three-year
intervals, in May 2010. Continual improvements are madeto management systems and environmental protection
activities based on audit results.
* ISO 14001:
A global standard governing voluntary environmental efforts byorganizations

ISO 14001 Certificate of Registration

Internal Environmental Audits
Employees who are qualified as internal environmental
auditors after undergoing appropriate training routinely
implement internal environmental audits to verify total
conformity to ISO requirements and conduct management
reviews. Individual departments take responsibility forrectifying any non-conformity and reporting on
improvements. The director of the board responsible for
CSR, who chairs the Environmental Action Promotion
Committee, carries out executive environmental audits ona regular basis together with safety audits.

*1. Pollutant Release and Transfer Register (PRTR) Law:
Officially, the Act on Confirmation, etc. of Release Amounts ofSpecific Chemical Substances in the Environment and Promotion of
Improvements to the Management Thereof.
*2. Chemical Substances Control Law:
Officially, the Act on the Evaluation of Chemical Substances andRegulation of Their Manufacture, etc.
Executive safety andenvironmental audit

40

CSR Report 2011

Environmental Targets
and Achievements● CO2 Emissions Reduction Targets

2012 Target:

After evaluating the results of the medium-term
environmental plan for the three years to 2009, we
formulated a new plan for the three years commencing
in 2010.
When formulating the new three-year medium
term environmental plan, importance was attached
to relevance to business activity plans. The three mainelements are as follows.
●Realizing a low-carbon society●Enhancing Lion’s environmental
management structure●Strengthening efforts in effective use of water
resources and biodiversity● Environmental Targets and Achievements

CO2 emissions
reduction

Waste reduction

Environmental
consideration in
products

Chemical
substance
management

Environmental
management
structureenhancement
Environmental
awareness andcommunication

30% or more2020 Target:

A reduction ofcompared to 1990

40% or more

◎ : Attained ○ : Almost attained × : Unattained

Target2012

compared to 1990

Achievements
2010

Principal measures in 2010

Attainment level in 2010◎
Reviewed laundry detergent production(27％ reduction
efficiency as an energy-saving measurecompared to 1990)◎
Reduce by 1％ or more
Increased use of large vehicles(1％ reduction compared
compared to the previous year
to the previous year)◎
Reduce by 1％ or more
Strengthened environmental(3％ reduction compared
compared to the previous year management structure
to the previous year)
Waste increased from 2009 due to×Reduce by 53％ or moremarket conditions leading to a decline (52％ reduction
in volume of items soldcompared to 1990)
Attain “zero emissions” status group-wide(Attained zero emissions*
Deployed Lion’s measures at(currently 8 out of 10 sites have attained —status at 1 affiliatedaffiliated companies
that status)
company)
NEW
Made improvements to cleaning
×
Reduce wastewater by 20％ or moremethods, but wastewater from cleaning
Reduce by 17％ or more
(12％ reduction
compared to 2005
increased due to increased switchingcompared to 2005)
between product varieties
NEW
Reduce total PRTR substanceCompleted preparations for managing
emissions by 45％ or more compared(42％ reduction—
substances newly specified undercompared to 2005)
to 2005 (separate targets to be set
revisions to the law
for new substances);
NEW
Reduce volatile organic compound◎
Introduced VOC recovery systems and(78％ reduction(VOC) emissions by 75％ or more
Reduce by 75％ or more
improved product composition
compared to 2000)
compared to 2000
Make environmental data
Carry out environmental managementfor overseas sites publicly
Disclosed data via Lion’s website◎
according to the PDCA cycle
available

Reduce energy-derived CO2 emissions
from business activities by 30％ ormore compared to 1990;
Reduce specific energy consumption
in logistics by 1％ or more on averageeach year;
Reduce the CO2 emission rate atoverseas production sites by 1％ ormore on average each year
NEW
Reduce total waste generation by
55％ or more compared to 1990;

Reduce by 27％ or more

Identify and perform accounting forenvironmental liabilities

Identify PCB waste and bookas environmental liabilities

Finished booking PCB waste asenvironmental liabilities

Continue to promote Eco Lion
activities

Formulate and make public a
Defined policy in a revision of thepolicy for biodiversity initiatives Environmental Guidelines

Related
pages
P44

P44
―
P45

P45

P45

P50

P50
―

◎

P40

◎

P52〜53
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Category

A reduction of

NEW indicates new targets set for the medium-term environmental plan for the three years 2010-2012.
* L ion defines “zero emissions” as the achievement of a 99% or higher recycling rate for total waste generated. However, this does not include residues fromrecycling. By 2010, 9 out of 10 manufacturing sites in the Lion Group had attained zero emissions status.

CSR Report 201141

The Environment and Lion

Environmental Accounting● Economic Benefits (Actual Benefits) Associated withEnvironmental Protection Activities (million yen)

Each year, we tabulate environmental protection costs,
environmental protection benefits, and economic benefits(actual benefits) associated with environmental protection
activities of the entire Lion Group based on Ministry of
the Environment guidelines. The tabulation period is
the same as the Company’s accounting year, JanuaryDecember 2010.

Benefits

Year-on-year reduction

Cost savings due to energy conservation

157

Cost savings due to resource efficiency

165

Savings on water and sewerage charges

3

Savings on waste treatment expenses*

5* Includes sales of items of value.

● Environmental Accounting (2010)

Environmental Protection Costs (million yen)
Category

Environmental Protection Benefits

Principal activities

Investments Expenses

Pollution prevention
Air pollution prevention, water pollution
prevention, etc.

109

Global environmental protection
Business area
costs

194

Energy conservation, etc.
Resource recycling
Waste treatment, recycling, etc.
Eco-friendly products
Eco-friendly product manufacturing
facilities, etc.
Outsourcing fees incurred due to Japan’sContainers and Packaging Recycling Act,
waste treatment, etc.
ISO 14001 renewal expenses, environmental
education, publishing of reports, exhibits, etc.
Costs for developing eco-friendly products, etc.

Upstream/
downstream
costs
Administration
costs
R&D costs
Social activity
Local environmental activities, donations, etc.
costs
Environmental
Tax imposed on pollution performance, etc.
remediation costs
Lion Group total

2

1,220
―

Category

2010

NOx emissions (tons)
60
SOx emissions (tons)
15
Particulate emissions (tons)
6
Total COD (tons)
10
Energy usage (t-CO2)
105,353
Industrial water usage (m3)912,7083,705
City water usage (m3)424,235
Wastewater (m3)729,624
Total waste generation (tons)
8,432
Final waste disposal (tons)
202
245
Recycling rate (%)
95(recycled volume ÷ volume consigned)Plant-based materials, biodegradable materials, compact
5,738 products, refill products, recycled paper use, recycled PET use,
etc.
272

524

Packaging materials used (tons)
Waste (tons)

65,323
2,292

P40、5090

1,735

P46〜49

0

22

P51

0

31

P40

1,616

12,904

Lion calculates eco-efficiency according to the following
formula to evaluate the efficiency of corporate activities
in terms of environmental impact. Efforts are then madeto improve eco-efficiency.
Eco-efficiency based on LIME improved again in 2010
due to a reduction in the environmental impact value*.

●E co-Efficiency and Environmental Impact Value(Compared to 2005)
150

333
100

97％

400

356
318
102％

Eco-efficiency

370

399

Environmental impact value (calculated using LIME)

83％

79％

200

50
100

0

2006

2007

Eco-efficiency

300

91％

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

CSR Report 2011

-4,992
P48〜49-1,272632(%) Environmental impact value (compared to 2005)

42

P46〜491

Eco-Efficiency

Eco-Efficiency=

RelatedYear-onpages
year change
7
-8
P45
-1
-2
-385
-1,867
P44〜45
19,38839,766
321
-89
P45
1

2008

2009

2010 (year)

Environmental
impact value0* Environmental impact value is calculated using the LIME2 integrated
coefficient list (July 1, 2010 version). The base year for environmental
impact value comparison has been changed to 2005.

Overview of Environmental Impact of Lion’s Business Activities

INPUT

OUTPUT

EnergyEmissions into atmosphere

Total energy usage56,995kL(crude oil equivalent)(-434)

Electricity

CO2 emissions

105,353tons(-385)

103,709million Wh

Production activities

96,455tons(3,535,000)

Natural gas

12,474,000m(431)

Non-production
activities

3(-1,299,000)

Other fuels(crude oil equivalent)

15,835kL

8,898tons(-816)NOx emissions

60tonsSOx emissions

15tons(-192)(7)(-8)

PRTR chemical
substances

Materials
Raw materials(Home products only)

PRTR chemical
substances

390,000tons

26,310kg(Lion Group)(47,000)

97,000tons

Emissions into water
Wastewater

730,000m

3(40,000)

PRTR chemical
substances

Water resources
Water used

1,337,000m

0kg

3(17,000)

Tap water used

424,000m

3

Waste(19,000)

Industrial water used

913,000m

Total waste generation

38,432tons(321)(-2,000)

Consigned for recycling

4,527tons

Final waste disposal

202tons(-255)(-89)

Logistics

Logistics
CO2 emissions

20,207tons(-643)

Products
Net sales

Customers

331.1billion yen(92billion)

39,079tons

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Waste packaging(-25)

Figures in parentheses indicate change from previous year

CSR Report 201143

The Environment and Lion

Reducing Greenhouse Gas Emissions
Looking beyond the Kyoto Protocol, Lion is working toward a large reduction in CO2 emissions.

Reducing Greenhouse Gas Emissions
The Kyoto Protocol came into effect in 2005, obligating
Japan to reduce greenhouse gases by 6％ between 2008
and 2012 compared to 1990 levels. At Lion, too, eachindividual employee is committed to reducing
CO2 emissions.

Reducing CO2 Emissions from
Business Activities● CO2 Emissions Reductions and Targets(tons) Energy-derived CO2 emissions

125,000

73％

100,000

70％
60％

75,00050,00025,000
0

1990

2009

2010

2012 target 2020 target (year)

Reducing CO2 Emissions after Product Use
Lion looks for ways to reduce CO2 emissions generated
after product use through its product-related researchand development activities. Specific efforts to reduce
product-derived CO2 emissions include replacing
petroleum-based surfactant ingredients with plant-based

44

CSR Report 2011

and Products(tons)

100％

45％ reduction

300,000
250,000
100
200,000

60％

150,000

37

64％

62％

46

45

51 ％

55％

33

39

Product-derived
CO2 emissions
CO2 emissions
from businessactivities

100,000
50,000
0

100

88

85

83

74

73

1990

2006

2007

2008

2009

2010 (year)

Initiatives in Logistics

Lion works to reduce CO2 emissions and specific energy
consumption through efforts to improve logistics
COD（トン））
水使用量
・排水量
efficiency, such as （千mshortening
transportation
distance100
2,000
using direct shipmentsfrom plants, and implementing
joint deliveries with other manufacturers. We are also
pursuing modal shifts
from1,509
truck 1,422
transportation
to
75
1,500
1,414
1,365
1,320
transportation by rail or ship, and obtained Eco Rail Mark水
recognition from Japan’s
Ministry of Land, Infrastructure
50
1,000
820
793
757
and Transport in 2005.
750
690
排
27 for all traffic volume
In 2010, the modal shift rate
23
21
25
500
17
was 22.0％, and 68.7％ for long-distance transport over 12C500km. CO2 emissions in logistics were 20,207 tons, a003.1％ reduction from the previous
year. Specificenergy
2005
2006
2007
2008
2009 （年）
consumption decreased 1.3％ from the previous year,
and we continued to satisfy guidelines to the revised Act
on the Rational Use of Energy by achieving a reduction of
1％ or more on average each year from 2006.
3

100 ％

74％

Total CO2 emissions, combining emissions from businessactivities and emissions generated after product use,
increased in 2010 from the previous year, with the
reduction compared to 1990 falling back to 45%.
●T
 otal CO2 Emissions Derived from Business Activities

In 2010, the Production Division worked to reduce CO2
emissions through persistent energy-saving measuresin addition to a review of laundry detergent production
efficiency and other efforts. However, CO2 emissions
at affiliated company plants increased due to a rise inproduction volume.
Offices and R&D divisions also reduced CO2 emissions
through advancement of activities relating to the
Challenge 25 Campaign — a national movement forthe prevention of global warming promoted by Japan’s
Ministry of the Environment — and efforts such as fullobservance of eco-driving when using company vehicles
and ongoing introduction of low-emissions vehicles.
As a result, CO2 emissions were reduced 27％ in 2010
compared to 1990.

150,000

ingredients that do not lead to an increase in CO2 (carbon
neutral: See p.47). In 2010, the reduction target was notachieved due to major changes in the product mix caused
by a shift in consumer needs.

Effectively Using and Recycling Resources
Lion promotes waste reduction and recycling, and is working to protect water resources and reduce wastewater.

Total Waste Generation
by Lion GroupIn 2010, the Lion Group reduced total waste generation
to 48％ of the 1990 level (2010 target: 47％ or below).
Although waste increased due to market conditions
leading to a decline in the volume of items sold, we
aim to reduce waste to 45％ of the 1990 level by 2012
through renewed efforts to ensure thorough sorting ofwaste and turn waste into valuable resources.
● Total Waste Generation by Lion Group(tons)

following the Oleochemical Division of Lion Chemical Co.,
Ltd. in 2008, and the Fukushima Plant of Lion Packaging
Co., Ltd. in 2009. We will now focus on attaining groupwide zero emissions status by 2012, with attainment at
one office still required.

Protecting Water Resources
Lion keeps a constant close watch on water usage andwastewater volume and works to reduce water usage
through cyclic use and lower environmental impact.
（千m ）水使用量・排水量（トン）
Improvements
to facility cleaning processesCOD
and
water
100 a new
2,000
conservation
were advanced as we set out towardtarget to reduce wastewater generated by the entire Lion
1,509
Group
below1,365
by 20122005.
1,422
1,500 to 80％ or
1,414compared to 75
1,320
However, more wastewater was generated in 2010 than
水使用量
in theprevious year due to high-mix production,and the
50
1,000
820
793of thevolume was still 88％
level. Further
efforts
7502005 757690
排水量
will be made27to protect
water
resources
throughprocess
23
21
25
500
17
improvements and other measures.
12
3

20,000100％

15,00056％

10,000

56％

51％

46％

48％
Affiliatedcompanies

5,000
0

Lion
1990

2006

2007

2008

2009

2010 (year)

COD

0● Lion0Group’s Water Usage, Wastewater Volume,
2005
2006
2007
2008
2009 （年）and COD*(1000 m 3) Water usage/Wastewater

In 2010, the Lion Group reduced final waste disposalby 97％ compared to the 1990 level, well exceeding
the target established by Keidanren (the Japan Business
Federation), a reduction of 86％ or more by 2010
compared to 1990.
● Final Waste Disposal by Lion Group

8,000

100％

1,422

1,500

793

0

6,000
5,000
4,000

Keidanren Voluntary Action Plan 2010 target

3,000

14％

2,000
1,000
1990

13％

11％

10％

4％

3％

2006

2007

2008

2009

2010 (year)

Lion plants attained zero emissions status in 2002 andhave maintained that status since.
Among affiliated companies, the Ono Plant of Ipposha
Oil Industries Co., Ltd. achieved zero emissions in 2010,

1,365

1,414

1,320

1,337

75

Water usage
1,000

20,000

7,000

0

100

500
（トン）

(tons)COD (tons)

2,000

23

50
750

17

757

690

730

21

25
12

Wastewater

10
COD

100％

0

2007
2009
2008
2006
2010 (year)
15,000* Chemical Oxygen Demand (COD):
An indicator of watermeasuring the amount of oxygen
56contamination％
56％
requiredin water
10,000 to oxidize and break down organic
51％ substances
48％
46％

Green Purchasing

ライオン

5,000
0

関係会社
1990

2006

2007

2008

2009

2010 （年）

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Final Waste Disposal by Lion Group

Green purchasing of office supplies used by employees
Company-wide is being advanced by expanding the list ofavailable items. The green purchasing ratio in 2010 was
80％ (79％ in 2009).

CSR Report 201145

The Environment and Lion

Considering the Environment from a Product-Oriented Perspective
Lion develops eco-friendly products in line with independent standards established from a perspective of life cycle assessments (LCA).

Lion Eco Standards*

Percentage of Products Satisfying the Lion
Eco Standards

When developing products, Lion considers the environment
in terms of both product composition (contents) andcontainers and packaging. The Lion Eco Standards,
established from a perspective of LCAs (See p.49), define
an “eco-friendly product” as a product that satisfies
the criteria of at least one area of evaluation based ona quantitative assessment of environmental impact in
the following stages: (1) raw material procurement; (2)packaging material procurement; (3) manufacturing; (4)logistics; (5) household use; and (6) disposal.
Lion recognizes the need to lower as much as feasible
the impact of products on the global environment
throughout their entire life cycle, and is therefore
committed to the development of eco-friendly products.
* Lion Eco Standards (Japanese only)
URL http://www.lion.co.jp/ja/csr/env/lioneco/

The number of products manufactured by Lion (excluding
pharmaceuticals) satisfying criteria for at least one Lion
Eco Standards area of evaluation is rising steadily. This
currently applies to 63％ of all items, or 82％ in terms ofsales value.
● Eco-Friendly Product Ratio and Percentage of Sales

(%)
100
80

68

Stage

1

Raw material
procurement

46

Use of plant-based raw materials
Use of sustainable raw materials

2 material

3 Manufacturing

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

4 Logistics

Compact size, high concentration

5 Household use

Energy savings during use (power savings)
Organic substance release per use
Reduction of water usage (water savings)

6 Disposal

Reduction of packaging and refill availability
Reuse and recycling of packaging, otherprocurement

CSR Report 2011

80

82

40

51

55

59

60

63

63

2006

2007

2008

2009

2010 (year)

20
0

2005

％ of products* Products satisfying criteria for at least one Lion Eco Standards areaof evaluation

Evaluation area

Use of recycled materials
Use of sustainable materials
Use of plant-based materials
Use of biodegradable materials

Packaging81

60％ of sales● Areas of evaluation for the Lion Eco Standards

83
71

Environmental Considerations in
Product Component Development
Lion is promoting development of product componentsthat meet environmental challenges such as global warming
prevention and water environment protection. Prime
examples of this approach are the development of methyl
ester sulfonate (MES) and methyl ester ethoxylate (MEE).
Lion was the first in the world to carry out industrial
production of MES, a plant-based surfactant withexcellent detergency and biodegradability. MES is used in
TOP Platinum Clear and other Lion laundry detergents.
MEE, which even in small amounts has high detergency,
is used in TOP NANOX.
Environmental considerations in products containing
MES and MEE are introduced on Lion’s website.

Superior Properties of MES Web

3. Excellent Detergency

1. No Increase in Atmospheric CO2
After use, surfactants are decomposed in the environment
to become CO2 and water. When surfactants made fromplant-based ingredients are decomposed, they do notrelease any additional CO2 into the atmosphere (they arecarbon neutral). The surfactant MES, made from plant
based ingredients, does not add to the amount of CO2 in
the atmosphere.
● Carbon Neutrality

Increasing the cleaning power of detergents reduces
the amount required per wash. This means less organic
matter is released, reducing the impact on water
environments. The current TOP Platinum Clear productcontains MES, which has excellent detergency.
● Organic Matter Released Per Wash Cycle

Organic matter (g)

（トン）

50

20,00

40
30

Light Energy
Photosynthesis

O2

CO2

No increase
in total CO2

40
28.0

15,00

25

10,00

20

0

Released into air

Detergent per wash cycle(g/30L of water)

20
10.4

10

Plant-based
ingredients

40

5,00

10.3

4.7
Soap powder(Year introduced)

The fully phosphate-free
Murin TOP(1980)High TOP(1988)TOP Platinum Clear(Present)

MES has other superior properties, including the ability
to retain high detergency in hard water and compatibility
with enzymes that break down stains.
Biodegradation

Product made fromplant-based ingredients● Comparison of CO2 emissions related tolaundry detergent
0

20

40

60

80

100

High TOP, 1990

(main cleaning ingredient ispetroleum-based)

51％

TOP Platinum Clear today(main cleaning ingredient isplant-based)

reduction

Raw material procurement Transportation Biodegradation after use
and manufacturing* CO2 emissions per wash cycle (1990 = 100)

2. High Biodegradability

Post-use Ecological Risk
Assessments
Surfactants are released into the environment after use.
Lion helps the Japan Soap and Detergent Association(JSDA) conduct concentration surveys and ecological risk
assessments of four types of surfactant in river systems inand around Tokyo and Osaka (four times a year)(See p. 52-53).
As the developer of MES and MEE, Lion independently
surveys and evaluates concentrations of the surfactant
in the same public waterways to verify their negligible
impact on ecosystems. The Company’s efforts to minimize
environmental risk are ongoing.

After use, surfactants are broken down by
microorganisms in the environment (biodegradation).
Since MES is easily biodegraded, it will not remain in theenvironment for a long time.

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CSR Report 201147

The Environment and Lion

Reduce“3Rs” for Reducing Containers
and Packaging
Lion actively promotes implementation of the “3Rs”(Reduce, Reuse, Recycle) as a container and packaging
material reduction initiative.
The Lion Eco Standards (See p. 46) provide forcontainer and packaging reductions, prescribing related
criteria under stages (2) packaging material procurement,(4) logistics, and (6) disposal.
● “3Rs” for Reducing Containers and Packaging Materials

R

Reduceeduce

Reduce usage
by reducing
the size and quantityof containers
and packaging

Reuse

Smaller Products and Innovations inContainer Design
Lion is working to reduce container and packaging
material usage by increasing the concentration of products
such as laundry detergents, dishwashing detergents, andfabric softeners, and making containers smaller.
Although more plastic was used in 2010 compared
to 2009, total container and packaging material usage
decreased by 3,801 tons to 60,841 tons due to a
reduction in usage of all other materials.
Lion will continue efforts to reduce container andpackaging material usage by making products smaller
and innovating with container design.
● Making Products Smaller

Higher concentrations enablesm
smaller containers

Reuse
Expand the range ofrefill products

・Halves the amount used・Same number of wash
cyclesTOP NANOX

Earlier productContainer weight 118g

RecycleRecycleUse recycled materials
where possible● Container and Packaging Material Usage by Lion

(tons)

total

80,00069,34360,00070,212

1,035

901

11,111

9,485

15,141

16,50567,720567
11,14064,642486
9,789

60,841

472
8,252

Metal
Glass
Paperboard

15,283

13,533

11,70040,00026,714

28,79426,072

25,53824,83815,342

14,527

14,65815,296

15,579

2006

2007

2008

2009

2010 (year)

20,0000

Reuse
More Refill Products
Using refills means original plastic bottles for products canbe reused several times. Containers of refill products also
use less material than the original containers, and they
are lighter and smaller, helping to reduce the amount ofwaste generated by households.

Corrugatedfiberboard
Plastic

Refill products

48

CSR Report 201176g

Recycle

Environmental Considerations in
Chemical Products Business

Use of Recycled Materials

Environmental Solutions Business[Use of recycled resins]
PET resin recycled from plastic drink bottles constitutes
20％ or more of material for containers for products suchas the dishwashing detergents CHARMY Awa no Chikara(Power of Suds), Charmy V Quick, and Charmy Mild.
Measuring spoons for powder laundry detergents makeuse of recycled resin from old washing machines andother electrical appliances.

Besides the home, Lion provides eco-friendly products
meeting the diverse needs of various industries. The
Company’s Chemical Products business undertakes thisfunction, and engages in developing and providing
industrial chemicals. In addition to plant-based
ingredients like fat and oil derivatives and surfactants,
an extensive range of products are supplied. They
include precision cleaning agents and electroconductive materials for information and electronics
industries, products for paper and pulp, and chemicals
for civil engineering and construction.
In this way, providing highly functional industrial
chemicals across a broad spectrum of industries, Lion is
supporting global efforts to reduce environmental impact
and creation of a sustainable, recycling-oriented society.

Product containers made using recycled PET resin[Use of paper made with recycled pulp]
White paperboard made with recycled pulp is used forcontainers and packaging for such products as toothpasteand detergents. It is stated clearly on powder laundry
detergent containers that the recycled pulp content is atleast 70%.
Corrugated boxes used for transporting products havea 94% recycled pulp content.

Eco-Friendly Chemical Products[Transformer Oil Derived from Plant-based
Ingredients]
The majority of chemical products are made frompetroleum, but Lion seeks to make effective useof renewable resources even in the production ofindustrial chemicals and proactively engages indevelopment of products made from plant-based
ingredients such as coconut oil and palm oil.
One successful product we have developed ishigh-performance transformer oil (palm or coconut
fatty esters) for use in transformers at plants andsubstations. This oil is highly biodegradable andreceived Eco Mark environmental certification.

Product containers made using recycled pulp

Life Cycle Assessments (LCA)

Transformer[Lowering Environmental Impact with
Water-Based Detergents]
In the manufacturing of electronic and information
devices, environmental concerns have led to calls fordetergents that can replace CFC-based detergents andchlorinated solvents. Lion has developed and supplies
a water-based detergent that contains no petroleumbased solvents.

CSR Report 2011

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The importance of quantitatively evaluating theenvironmental impact of products at each stage fromraw material procurement to disposal through life cycle
assessments (LCA) is being increasingly recognized.
Lion is also advancing LCA efforts that encompass
the concepts of carbon and water footprints. Crossfunctional initiatives by related departments in this area
will allow further enhancement of our eco-friendly
product lineup.

49

The Environment and LionAppropriately Handling Chemical Substances
Showing consideration to safety and the environment in all processes from product development through to use and disposal, Lion works toensure strict chemical substance management and to reduce chemical use.

Approach to Chemical Web
Safety Management
Chemical substances are indispensable for people tolead comfortable and fulfilling lives. Failure to properly
manage chemicals, however, can result in accidents thatput human health and ecosystems at enormous risk. In
addition to compliance with related laws and regulations,
Lion strives to ensure strict management of chemical
substances at all stages from product development
through to use and disposal in accordance with our own
independent standards.

Product Development[Selection of chemical substances for use in products]
The type and quantity of chemical substances to be used in a
product are determined during the development stage. The
properties of a substance are not the only consideration.
We also examine safety and environmental impact.

Production[Compliance with PRTR Law*]
Each year, Lion declares release and transfer volumes forchemical substances targeted by Japan’s Pollutant Release
and Transfer Register (PRTR) Law. In 2010, release andtransfer volumes of substances newly included underrevisions to the law were also ascertained.
* PRTR Law
Pollutant Release and Transfer Register Law

in accordance with the law after ascertaining volumes
manufactured or imported, usage, and other data.
[Voluntary initiatives for preventing air pollution]
Lion also implements voluntary initiatives for reducing
emissions of chemical substances that cause air pollution,
including nitrogen oxides (NOx), sulfur oxides (SOx),
particulate matter, and volatile organic compounds(VOC). In 2010, we managed to reduce VOC emissions
by 78% compared to 2000, thereby attaining our 75%
reduction target.

Transportation[Provision of safety information duringtransportation]“Yellow Card*” and “Container Yellow Card*” systems
are used when transporting items such as raw materials
and intermediate products. These cards are distributed tocarriers and attached to freight, and provide emergency
procedures and other information to refer to if an
accident occurs.
* Yellow Card and Container Yellow Card systems
Yellow cards for emergency contact purposes. Printed on the cards toensure readiness in the case of a chemical spill or other accident duringtransportation is information such as chemical substance properties andemergency procedures. Yellow Cards are held at all times by freight
carriers. Container Yellow Cards are attached to containers holding
chemical substances. The cards are created according to independent
standards determined by a large group of chemical manufacturers.

Use and Disposal[Compliance with Chemical Substances Control Law]
Japan’s Chemical Substances Control Law was overhauledin 2009. Previously, only certain chemical substances
manufactured or imported had to be declared. From
2011, all chemical substances need to be declared (butonly if one ton or more is manufactured or imported). Lion
will file declarations for all covered chemical substances

Please see “Post-use Ecological Risk Assessments”
on page 47.
Chemical substance management data for the LionGroup can be viewed on Lion’s website.

● Lion's Chemical Substance Management50

1 Product Development

2 Production

3 Transportation

Safety verification and managementof chemical substances containedin raw materials

Measurement and reductionof chemical substance releases

Provision of information relating
to safety and handlingof chemical substances

CSR Report 2011

4 Use and Disposal(See p. 47)

Fostering Environmental Awareness within the LionGroup and Environmental Communication

Lion endeavors to heighten environmental awareness among employees and to communicate environment-related information to society as a whole.

Fostering Environmental Awarenesswithin the Lion Group
Regular Environmental Education
and Communication
Environmental education is conducted on a regular basis
for all employees.
Education provided during 2010 included programsfor new employees, employees in charge of waste
management, employees in charge of chemical substancemanagement, and internal environmental auditors.
An additional eight employees took part in an internal
environment auditor training seminar.
In-house media were also used to increase employees’knowledge and concern for the environment, forexample by introducing environmental activities pursued
by individual departments.

Environmental Communication

development to disposal.
For the 7th Sakai-Senboku area Responsible Caredialogue meeting held in February 2010, Lion organizeda tour of the Osaka Plant and introduced the Company’sbusiness activities and environmental initiatives.
In December, Lion participated in dialogue with
consumer groups, hosted by the RC Committee, where
we gave a presentation on environmental considerations
incorporated into our detergents.

Environmental Activities for Wholesalers
and Retailers
Lion’s environmental activities were introduced towholesalers and retailers at Lion Marketing Communication
2010, a briefing on marketing measures, in order toconvey to them our commitment to environmental
considerations throughout the supply chain. A magazine
for wholesalers belonging to the Lion-kai forum also
introduced the Company’s environmental initiatives in anarticle on water environment protection activities.

Participation in Environment-Related Events
Lion wants many people to know about its environmental
activities. At Eco-Products 2010, Japan’s largest
environmental fair, we introduced efforts such as
considerations for the environment through products, water
environment protection activities, and biodiversity initiatives.
We also participated in environment-related exhibitions
held in areas near business locations, including Ecomessein Chiba 2010.

Kyoei, a magazine
for Lion-kai wholesalers

Environmental Communication Using Posters
Posters illustrating Lion’s CSR activities are produced andused as a tool not only for employee education, but also
for communicating our environmental activities to visitors
to the Company.

Eco-Products 2010

Interaction with Communities and Organizations

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Lion participates in activities of the Japan Chemical
Industry Association’s Responsible Care (RC) Committee,
through which the chemicals industry strives for ongoing
improvements to safety and environmental considerations
throughout the life cycle of chemical substances, from

CSR activity
posters (2010)

CSR Report 201151

The Environment and Lion

Biodiversity Initiatives
Lion advances biodiversity conservation efforts from two angles: biodiversity considerations in business activities, and protection of rare species.

Approach to Biodiversity Conservation
Lion attaches a priority to incorporation of biodiversity
considerations into its business activities and has assumed

a leading role in tackling such issues as pollution andeutrophication of waterways linked to the use ofdetergents. Considerations toward biodiversity areparamount and Lion will incorporate them at stages
throughout the product life cycle.

● Lion's Biodiversity Conservation Initiatives

Biodiversity considerations
in business activities

Raw material
procurement
materials helping
to conserve
biodiversity

e.g. Procurement of palm oil● Excellent

biodegradability

Household use

Production

e.g. Consideration ofwater environments● Lowering per-use● No air or rivervolumepollution

Distribution

Sales● Water savings

Aiming for Sustainable Procurement of Palm Oil

Surveying Environmental Impact

Production of palm oil is steadily increasing, and demand
growing, due to high productivity and the ability to harvest
throughout the year. Downsides to the development of newplantations, however, are the clearing of tropical rainforests andthe shrinking of wildlife habitats.
Lion has been a member of the Roundtable on Sustainable
Palm Oil (RSPO)* since 2006. Plantation audits and certified palm
oil distribution commenced in 2008, but Lion will continue towork with concerned organizations such as the RSPO to promotesustainable palm oil procurement and use of certified palm oil toprevent unregulated development in palm oil producing nations.

As Lion’s products end up being discharged into rivers,
streams, and other waterways after use, we assess themduring the development stage to confirm they are safefor the environment. We also gather data on residual
quantities of detergent constituents in water samples takenfrom rivers and streams to check that the environment has
not been harmed. Thus far studies have found that therisk of wildlife being harmed is extremely low.
Lion is not the only organization engaging in safetyassessment and confirmation. Besides acquiring andapplying the latest information and technology available inJapan and overseas, we disseminate our own information,
contributing to safety advancements.
(See related information on p.47)* RSPO (Roundtable on Sustainable Palm Oil)URL http://www.rspo.org/

52

Disposal

Eco-friendly activities at each stage
from raw material procurement to disposal● Use of plant-based

CSR Report 2011

Raising Employee Awarenessthrough Nature Protection Activities
Alongside business activities, Lion engages in activities
like forest maintenance and breeding of rare species

as part of its contribution to local communities andto society. Employees participate in these activities asvolunteers, and that experience makes them more awareof environmental matters as they go about their jobs.

● Lion’s Nature Protection Activities

Breeding of Sakawa
River System Killifish

Breeding of Fireflies

The Odawara Plant
registered with apropagation program forthe endangered Sakawa
River system killifish in2003 and breeds the fish on
plant premises.

The Odawara Plant raises
fireflies using clean water
available at the plant.

Maintenance of the Lion
Forest in Yamanashi

Support for Sea Turtle
Protection

As a stage for fostering
environmental awarenessamong employees, forest
maintenance is incorporated
into new employee training.
(See related information on
p.35)

Under the guidance of the
non-profit organization Sea
Turtle Association of Japan,
Osaka Plant plays a lead rolein activities to protect theendangered loggerhead
sea turtle.

Eco First Companies Association Activities

Jisui Bridge

Hamura Weir

Sasame Bridge

Tokyo
Tamagawara Bridge

Den-en Chofu Weir
Hirakata Bridge
Yodo RiverOsaka

Edo RiverSampling points* Lion takes samples at the same locations as the JSDA.

Kanamachi

t
n
e
mn
no
i
oL
r
i
d
v
n
n
Ea
e
h
T

Arakawa River

Tama River

The Eco First Companies Association, an independent
organization run by companies recognized by Japan’s
Ministry of the Environment (MOE) as front-runners inenvironmental action, held a COP 10* partner event, an
MOE-supported Living Things Ecotowaza (Eco Proverbs)
Contest. Judged and supervised by the Japanese Societyof Paroemiology, winners of Eco First Companies
Association Prizes (first prizes), association member
prizes and other awards were selected from a large
number of submissions. Awards were presented at aceremony during another COP 10 partner event, Messe
Nagoya. The association also held an open symposium
on biodiversity in Nagoya where biodiversity initiatives ofmember corporations were introduced.
* COP 10
The tenth meeting of the Conference of the Parties to theConvention on Biological Diversity

CSR Report 201153

Third-Party Review
Hopes for the development of open stakeholder dialogue
The themes of the two special features in Lion’s CSR Report for 2011,
the 120th year since the Company’s founding, are “Culture Bearer for
Oral Hygiene” and “Culture Bearer for Cleanliness.” They are enjoyable
pieces describing the CSR mentality in place right from the Company’s
establishment. From the Stakeholder Dialogue, too, we can appreciate
the value that Lion places on communication with people who actually
use the products, because customers from the general public wereinvited to take part, not experts, as is often the case. The article tells
us these stakeholders feel Lion’s environmental protection and social
contribution activities have not been adequately communicated.
Communication today is evolving constantly with the ongoingdevelopment of information and communication technology.
Some business administrators who are quick to catch on to suchdevelopments and hope to benefit from online word-of-mouth are
beginning to engage in direct dialogue with stakeholders using social
media platforms like Twitter, communicating current initiatives thatway. You could say more people are seeking out things they canidentify with. I think Lion should take time to examine the formsof media stakeholders turn to for information and use for day-today living, which may not be mass media outlets like television andnewspapers, and to build a framework for open dialogue.

The Great East Japan Earthquake has altered approaches to CSR
Many people died along the Pacific coast of Iwate, Miyagi and
Fukushima Prefectures as a result of the massive earthquake andtsunami which hit East Japan in spring 2011. Persistent earthquakes
and radioactive contamination are making the path to recovery
difficult. On the other hand, the disaster has led to a jump in social
awareness among citizens. Many have donated relief funds andvolunteered their services, or have thought hard about what they
can do to support affected communities. After the 1995 Great
Hanshin Earthquake, numerous non-profit organizations emerged totake up services that government authorities were unable to fulfill.

Matters following the recent disaster are even worse. For that reason,
corporations are going to have to play different roles in society thanin the past. As President Fujishige declared in his opening message,
Lion must undertake a fundamental review of corporate activities andrebuild the Company’s product development framework and businesssystems. Stakeholders will identify with that sort of information. I
also hope you will use the CSR section of your website effectively tooutline new initiatives you were unable to cover in this report.

Further enhance energy conservation through power-saving
efforts this summer
In the wake of the recent disaster, the Government has initiated a
power-saving campaign. Lion deserves praise for responding quickly
to social needs, joining other Eco First Companies in promising the
Minister of the Environment to reduce power consumption by 15%.
The timing of notification about this commitment via your website
was also good. Looking ahead, even if corporations do successfully
reduce power consumption, supply in periods of high demand will
still have to be complemented using fossil fuels, generating a lot of
CO2 emissions. The rate of CO2 emissions will change as a result.
The disaster may fundamentally alter the environmental programsof corporations. Social needs for renewable energy are likely to rise,too. As such, this is the ideal time for companies to strengthen theirenvironmental positions. As a leading company in environmental
friendliness, I trust Lion will take positive action.

Yutaka Kamioka
Representative Director

EOL International (NPO)

Lion’s Response
It has been Lion’s belief that values and ideas about happiness havereached a major turning point. People want spiritual richness, notmaterial wealth; quality, not quantity. The Great East Japan Earthquake
has caused a dramatic change in mentality, and people are thinking
hard about the way society and corporate activities should be. Since
the disaster, the desire for sustainable living offering spiritual richness
has strengthened, and as the president declared in his opening
message, Lion, too, will rebuild its product development framework
and business systems as we set out to create a society where people
feel secure.
We have also put in place frameworks for providing ongoing human
support to affected communities in addition to relief funds andsupplies. Lion supports employees who wish to engage in volunteer
activities by enforcing a special volunteer leave program and bearing
transport and accommodation costs. Activities of these employee
volunteers are already underway. Their experiences will be sharedinternally to expand the scope of participation, and efforts will be
communicated to people outside the Company as well.
We agree with your comment that very different corporate initiatives
dealing with global warming and other environmental issues are
required as a result of the recent disaster. Not only will Lion enforce
emergency power-saving initiatives, we will also accelerate studies
into the use of renewable energy and effective use of rainwater,
stepping up our efforts toward realization of a sustainable society.
Furthermore, we intend to actively support the environmental effortsof households, helping to improve the environmental compatibility54

CSR Report 2011of lifestyles through development and provision of water-saving andpower-saving products.
In order to fulfill our social responsibility, Lion has to be able toaccurately identify changing social needs through communication
with stakeholders. With that in mind, we carried out our first everdirect dialogue with customers on CSR activities. Discovering that
information has been inadequately conveyed to customers in the past,
we know we must strengthen CSR communication via our website.
The CSR section of our website will be enhanced as an interactive
medium with benefits in terms of coverage, speed and visual appeal.
The origins of Lion’s approach to CSR can be traced to the Company’s
founding spirit of working for the benefit of people and society, andthis spirit lives on today, 120 years later, in the Company Motto.
We believe it is our social responsibility to support the realizationof healthy, comfortable and sustainable living through our businessactivities. Lion will press ahead with its activities while listening to theopinions of stakeholders.

Shuichi Ota

Director, Lion Corporation
Responsible for Corporate Communication (Public
Relations, Consumer Service, CSR Promotion),
Personnel, General Affairs, and Investor Relations

Editorial Note
The Great East Japan Earthquake struck as we werepreparing this report. The words “sustainable society”
seem so much more relevant now than before the disaster.
Mentalities will have to change, and corporations will be
required to bear even greater responsibility toward society.
The amount of CSR information we need and would liketo disclose is increasing, and utilizing the website allows
us to improve coverage. On the other hand, we wanted
this CSR Report to demonstrate Lion’s stance of supporting
healthy, comfortable and sustainable living through ourbusiness activities. To mark the 120th year since Lion’s

founding, we included special features recounting the historyof our business from a CSR perspective. Our corporate
activities are CSR activities. We will continue to enhance the
CSR Report as an effective tool that will remind employeesof Lion’s inherent CSR spirit, present right from the start,
allow them to engage that spirit, and through dialogue
endeavor toward sustainable growth together with society.

CSR Promotion Department, Lion Corporation

CSR Report 201155

CSR Report 2011

Front cover:
Overall winners in the Lion TOP Eco Project Waterfront Painting Contest“The cool water in the river feels so nice!” by Ami Oogushi (Shizuoka Prefecture)“Clean and cool! It feels so good!” by Rie Ando (Kyoto Prefecture)

CSR Report

2011
T h e coin th eo l w a te rri ve r fe els so n ic

e!

Lion Corporation
Published:
October 31, 2011
CSR Promotion Department, Lion Corporation
Inquiries:
CSR Promotion Department, Lion Corporation(Social Responsibility Promotion Team/Environmental Conservation Office)3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan
Tel: +81-3-3621-6611 Fax: +81-3-3621-6269
Website: http://www.lion.co.jp/en/
Next scheduled publication:
October 2012

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

d co o l!

It fe e ls sogood!