Beyond

ALSOK

cSr report 2014
Year Ended March 31, 2014

Sohgo Security ServiceS co., Ltd.

Securities Code: 2331

Protecting the Safety of
Various Facilities

Stationed Security
Services
ALSOK stations highly trained security
guards at office buildings, commercial
facilities, financial institutions, hotels,
and various other facilities. These
guards provide high-quality security
services that include protecting
against crime, disaster and administering access management as well as
maintaining a safe and comfortable
atmosphere at clients’ facilities.

Safely Transporting Cash andOther Valuables

Transportation
Security Services

ALSOK provides the Total ATM
Management System for use bybanks and convenience stores, theCash Deposit Machine On-line
System in which it manages the daily
sales revenues of businesses, andCash Transport System service,
which provides safe transportation of
cash, marketable securities, important
documents, and other valuables.

Offering Customers Safety andSecurity 24/7

Electronic Security
Services

At the core of ALSOK’s security services are its Guard Centers. As nerve
centers equipped with state-of-theart IT and computer technologies,
our Guard Centers are always linked
to customer properties, enabling ourhighly trained and experienced staff
to monitor the premises 24 hours aday, seven days a week and thereby
ensuring that customers’ assets areprotected under any circumstances.

Business expansion

Worsening of perceptionof safety

Changing of the operating
environment for financial,
distribution, and retail industries

Changing social needs

Construction of new business models that accurately
respond to ever-changing social needs
Since being founded in 1965, the ALSOK Group has continued to expand its business by providing an importantpart of Japan’s economic and social infrastructure as a leader in the Japanese security services industry. Amidst rapidlychanging conditions in the security services industry, the Group is working to develop a new, more advanced
business model. Based on this model, we will offer products and services that accurately respond to ever-changing
social needs to ensure the safety and security of our customers and society.

1

CSR Report 2014

Operations Centered in Asia

Managing Client’s Buildings

Total Management
Services

Meeting the Needs of
Individual Users

Home Security
ALSOK’s high-quality home security
services utilize the wealth of expertise and sophisticated systems
developed through serving corporate clients. Security systems can be
operated easily with the mere pushof a control terminal button. As, inthe event of an emergency, highly
experienced security guards will rush
to the scene to protect the customer’s precious family members andhomes, thereby providing peace ofmind in daily lives.

ALSOK provides a total package ofproperty management that complements its security services, such as
stationed security services and electronic security services, and disasterprevention services with cleaning
management, environmental hygiene
management, facility management,
and maintenance management. This
package provides for more-comfortable building environments.
Additionally, ALSOK manages financial
institutions’ unstaffed ATM locations
and provides telephone reception services. By offering such comprehensive
operation and management services,
we are able to greatly reduce the laborburdens of the management staff atclient’s buildings.

Overseas Expansion
Leveraging the security expertise
accumulated through domestic
operations to date, ALSOK provides
safety and security to Japanesecompanies operating overseas. The
services we offer include analyzing
security issues, developing security
plans, and introducing these companies to our local security partners. Our comprehensive security
operation and management services also include support for
improving security quality.

ALSOK utilizes the management resources and expertise
accumulated in its security services business and provides
high-value-added services that help resolve social issues, suchas those created by the declining birthrate and aging society.

Protecting safety and security in accordance with the company’s management philosophy
IT-based society

Responding to disasterprevention and business
continuity plan (BCP) needs

Accelerating overseas migration by
Japanese companies

Declining birthrate
and aging society

Beyond theTime
CSR Report 2014

2

Beyond theDiverse range of human resources that support safety andsecurity while also driving technological innovation thatspreads beyond the boundaries of security services
The ALSOK Group currently protects the lives and assets of approximately 440,000 corporate clients and
240,000 individual users. The Group also manages roughly 50,000 ATMs located throughout Japan. In this manner,
we provide an important part of social infrastructure for supporting economic development and our daily lives.
Our approximately 28,000 employees support daily security operations amidst ongoing technological innovation that
continues to evolve security services in response to changing social needs. These capable individuals tackle their workwith a spirit of gratitude and a tough yet fair, kind samurai spirit as they work to provide safety and security that spreads
beyond the boundaries of traditional security services.
3

CSR Report 2014

Boundaries
Total Building
Management andDisaster Prevention
Services

Individuals

Other Services

3.7%

1.0%

13.7%

Transportation
Security
Services

15.6%

Net Sales byService Type(As of March 31, 2014)¥ 328.2 billion

Electronic Security
Services

46.3%

Government Offices /Japan Post

Financial
Institutions

8.9%

24.9%
Net Sales by
Customer Type(As of March 31, 2014)

Business
Corporations
Stationed Security
Services

62.5%

23.5%

CSR Report 20144

Number of corporate client contracts for Electronic Security Services

440,028
Stationed Security Services sales¥

Through its Electronic Security Services, ALSOK pledges
to provide safety and security 24 hours a day, seven daysa week through the union of highly trained security guards
and sophisticated technologies.

Number of home security contracts

77.2

billionApprox.

ALSOK’s stationed security services boast a leading share of the domestic market.

240,000

HOME ALSOK Premium line uses state-of-the-art technologies to provide suchfeatures as image monitoring and remote control via smartphones.

Three-year growth rate for Total Building
Management and Disaster Prevention Services

BUSINESS

163%

Sales of these services are growing rapidly due to synergies with security services.
* Includes Japan Facilio Co., Ltd. (converted to a subsidiary in 2011)

Cash Deposit Machine On-line System units
in operation

15,000

Number of ATMs managed throughout Japan

50,00010

Approx.

Approx.

The Cash Deposit Machine On-line System allows
for more-efficient management of cash from daily
sales, while reducing management costs andtransportation risks.

The Total ATM Management System provides
comprehensive support for ATM operation, ranging
from malfunction response to cash replenishment,collection, and inquiry.

Corporate value improvement
through higher profitability andgreater trust from society

Overseas operations

regions

ALSOK is aggressively expanding into
overseas markets, particular those in Asia.

BeyondThe ALSOK Group’s services are based on the provision of safety and security to society, and our ability to continue
developing our security services business comes from the trust that society places in us. As the ALSOK Group
works to improve corporate value, we will pursue higher profitability while simultaneously moving beyond our businessto implement various initiatives geared toward earning greater trust from society.

5

CSR Report 2014

Security stations throughout Japan

2,400

To protect customers’ safety and security, ALSOK security guards arequickly dispatched from security stations located throughout Japan.

Aggregate number of ALSOK ANSHIN KYOSHITSU
participants

SOCIETY

1

More thanmillionMore than 1 million elementary school students have participated in
ALSOK ANSHIN KYOSHITSU classes since the program began 10 years ago.

Number of times ALSOK-supported athletes haveparticipated in the Olympics

Annual training sessions

22

576

to dateALSOK supports wrestling, judo, and other sports, and a number of world-classathletes are affiliated with the Company. * Includes retired employees

times / year

Aiming to improve employee skills and otherwise cultivate human resources,
ALSOK holds several specialized training sessions throughout each year.

Percent of employees returning to work afterchildcare or nursing care leave

Welfare vehicles donated through
ALSOK ARIGATO UNDO

Ratio of employees with security consultant
qualifications

91

89

1/4

The Company is promoting work-life balance anddiversity with a full range of support systems.

Operated through membership fees anddonations from executives and employees, the
ALSOK ARIGATO UNDO movement donates
welfare vehicles each year.

%

to dateThese qualified employees are specialists ininstituting crime and disaster prevention measures
for the good of society.

the Business
CSR Report 20146

Message from Management

ALSOK will help resolve social issues by providing services
that go beyond the boundaries of traditional security services
to accurately respond to ever-changing social needs.

Chairman and
Representative Director
Chief Executive Officer (CEO)President andRepresentative Director
Chief Operating Officer (COO)

As the Leading Company in the Security
Services Industry

ALSOK has continued to conduct CSR activities based on
the seven core subjects of ISO 26000, an international stan-

ALSOK was founded in 1965. Since then, we have continued

dard for social responsibility. Beginning in the year ended

to evolve and expand our business as a security company that

March 31, 2014, however, we chose to supplement these

protects the safety and security of Japan. Today, in the 49th

activities by stepping up efforts centered on four material CSR

year since our founding, we have grown into a corporate groupthemes of our own creation. Meant to take form in our busi-

with annual net sales that exceeded ¥320 billion and, as

ness operations, these themes are: ❶ providing products andJapan’s leading security services provider, are supplying a key

services that help resolve social issues, ❷ cultivating humanpiece of social infrastructure that is indispensable to economic

resources and building a comfortable workplace environment,

development and to our daily lives.

❸ contributing to local communities through active communi-

Our mainstay Electronic Security Services segment protects
the lives, assets, and safety of approximately 440,000 corporate

cation, and ❹ providing trustworthy security services.
In addition, we realize that protecting the global environment

clients and 240,000 individual user households, and ouris an important activity theme that transcends industry bound-

Transportation Security Services segment manages roughlyaries and affects all of humanity. For this reason, we utilize

50,000 ATMs nationwide. Meanwhile, our Stationed Security

hybrid-electric vehicles for security services, and are introduc-

Services segment is spreading our security services to every

ing liquid petroleum gas-powered vehicles and advancing othercorner of society through its various undertakings, including

environment preservation initiatives that draw on ALSOK’s

protecting the safety of numerous large-scale commercial

unique potential.

facilities, most notably TOKYO SKYTREE TOWN .
®

Furthermore, the ALSOK Group is supporting the security ofJapanese companies developing operations overseas. Going

Providing Products and Services that Help Resolve
Social Issues

forward, overseas expansion will be an important area of focus

The Company believes the best way for it to practice CSR isas we work to protect safety and security in other countries toby helping resolve the issues faced by customers and society

transform ALSOK from a national brand into a global brand.

as a whole through its business activities. Looking at thesafety of Japan, there are approximately 110,000 burglaries

Material CSR Themes to be Addressed
through Security Services

7

each year, the majority of which involve residences.
Meanwhile, due to the low birthrate, the aging population, andContinuing to earn society’s trust as Japan’s leading secu-

the trend toward nuclear families, it is becoming more com-rity services provider will require us to practice CSR of themon for people to fall victim of crimes, accidents, or serious

highest caliber.

illnesses in times when their family is not around to assist andCSR Report 2014

for response to be delayed, sometimes with dire results.
Accordingly, in our security services business, we have seen

Contributing to Local Communities throughActive Communicationa rise in the amount of people seeking safety and security in

As a security services company, ALSOK is responsible for

their daily life. Society now expects us to provide services that

protecting the safety and security of local communities.

are suited to the lifestyles of each household and individual.

However, we also realize the importance of actively working

To cater to such demand, we launched a new brand, HOMEALSOK, in October 2012. For this brand, we are developing
a comprehensive lineup of services that provide safety andto resolve the various issues faced by the communities weserve as a good corporate citizen.
Aiming to ensure children’s safety, we have been holding

security for the various lifestyles. We thereby aim to help resolve

ALSOK ANSHIN KYOSHITSU classes for crime prevention

the issues faced by each individual customer.

since 2004 at elementary schools throughout Japan, andIn addition, we entered into the nursing care business in2014 thus marked the 10th anniversary of this program.

October 2012 to help resolve the problems of an aging soci-Since its launch, more than 1 million children at 7,438

ety. As of March 31, 2014, we had six nursing care bases inschools have participated in this program. ALSOK ANSHIN

the Tokyo metropolitan area. In this business, we will provide

KYOSHITSU classes contribute to the safety and security ofa diverse range of services to help resolve the issues faced

society by fostering awareness regarding crime prevention

by customers and society in this field by taking advantage

among children while simultaneously sharing crime preventionof the unique know-how we have cultivated while providing

education know-how with educators and guardians. We see

security services.

this program as an important social contribution activity thatcan only be conducted by ALSOK with its business of pro-

Cultivating Human Resources and Building a
Comfortable Workplace Environment
The ALSOK Group’s business is supported by the strong sense

tecting safety and security. For this reason, we will continue
to conduct ALSOK ANSHIN KYOSHITSU classes while evolving these classes in the future.

of commitment that every employee feels toward their missionof protecting the safety and security of society. For this reason,

Providing Trustworthy Security Services

we are actively cultivating trustworthy human resources while

The ALSOK Group’s services are founded on the strong trust ofbuilding a comfortable workplace environment in which allsociety. Stringent compliance with relevant laws is absolutely

employees can work to their full potential. Security services

essential, and we must also practice strong corporate ethics andare directly responsible for protecting the safety of customers’

discipline. The Company therefore places compliance among its

lives and assets. Therefore, our employees must possess

highest management priorities, and the Group is united as one in

specialized security services skills and be capable of operat-

advancing compliance initiatives. Each year, the Complianceing sophisticated security systems. To cultivate these skills, we

Committee takes charge in identifying compliance issues for thehold trainings that have been fine-tuned for different businessGroup to address. Relevant divisions then work together tosegments, including Electronics Security Services, Stationed

spread awareness regarding these issues throughout the Group.

Security Services, and Transportation Security Services. We

Preparation for ALSOK’s 50th Anniversary

Beyondalso provide employees with a wide range of other educational
activities, such as those related to security systems as well as

In 2015, we will celebrate the 50th anniversary of our found-

corporate ethics training and voluntary education classes.

ing. It goes without saying that we would not be able to cele-

ALSOK is also committed to promoting work-life balancebrate this momentous event without our many supporters.

and diversity. We have in place the necessary systems toGoing forward, we hope to advance our business while always

make employees feel secure in their work, and also offer

maintaining our spirit of gratitude toward our stakeholders

career development support and a number of other opportuni-

together with the righteous samurai spirit expected of a secu-

ties for employees to take on new challenges. These opportu-

rity company. In the future, we will leverage our security ser-nities are made available regardless of gender or age. Results

vices expertise to grow by undertaking new businesses. We

are already being seen as female employees are now highly

look forward to the continued support and encouragement ofactive in all fields, including providing onsite security services.

all our stakeholders as we take on these new challenges.

ALSOK will help resolve social issues by providing services

that go beyond the boundaries of security services and accurately respond to ever-changing social needs.

CSR Report 20148

aLsoK Csr
Four Material CSR Themes to be Addressed
through Security Services
In order to grow together will society, as Japan’s leading security services provider, it is crucial that we continue to earn thetrust of our stakeholders by practicing CSR of the highest caliber.
Acting in accordance with its management philosophy, ALSOK has continued to conduct CSR activities based on theseven core subjects of ISO 26000, an international standard for social responsibility. In the year ended March 31, 2014, theCompany decided to supplement these activities by strengthening efforts centered around four material CSR themes. Meant
to take form in business operations, these themes are:providing products and services that help resolve social issues,

cultivating human resources and building a comfortable workplace environment,
through active communication, andcontributing to local communities

providing trustworthy security services.

In addition, the Company realizes that protecting the global environment is an important activity theme that transcends
industry boundaries and affects all of humanity. For this reason, we utilize hybrid-electric vehicles for security services, and are
introducing liquid petroleum gas-powered vehicles and advancing other environment preservation initiatives that draw on
ALSOK’s unique potential.

materiality 1: Consumer

materiality 2: Labor Practice

Providing Products and Services that
Help Resolve Social Issues
P.11-14

Cultivating Human Resources andBuilding a Comfortable
Workplace Environment
P.15-18

materiality 3: Community

materiality 4: operating PracticeContributing to Local Communities
through Active Communication

Providing Trustworthy
Security Services

P.19-22

P.23-26

ISO 26000 Core Subjects
Organizational governance
Human rights / Labour practices
The environment
Fair operating practices
Consumer issues
Community involvement and development

Management Philosophy
Our business operations are based on a management philosophy exemplified by a spirit of gratitude1
and a samurai spirit2. Our mission is to help maintain safety throughout society, an indispensable elementof our lives, as well as to make constant improvements to become the industry’s leading company.
1. Human beings in society agree to live and let others live. The spirit of gratitude is a humble feeling of thankfulness to all the people and things around ourselves.
2. The samurai spirit embodies a strong and honorable concept of discipline, purpose, and the will to succeed and develop.

9

CSR Report 2014© Natsuki YASUDA/
studio AFTERMODE

Helping Resolve Social Issues
ALSOK is advancing CSR activities in each of its businesses that call on
its unique characteristics as a company that protects the safety andsecurity of society. Calling upon the know-how we have accumulated
through our security services business, we will create new value whileproviding a diverse range of services that help resolve the issues facedby customers and society as a whole.

Stationed Security Services

Transportation Security Services

Electronic Security Services

TOKYO SKYTREE TOWN®

Total Building Management andDisaster Prevention Services

Other Services

CSR Report 201410

Consumer
Materiality
Materiality

Consumer

Providing Products and Services that
Help Resolve Social Issues
ALSOK believes the best way for it to practice CSR is by helping resolve the issues faced by customers andsociety as a whole through its business activities. In this pursuit, we will maintain an accurate understandingof social changes, such as the declining birthrate, the aging population, and the trend toward nuclear
families. Based on this understanding, we will provide a diverse range of products and services to help
resolve the issues faced by customers and society by taking advantage of the unique know-how we havecultivated while providing security services.

11

CSR Report 2014

Materiality Report 1

HOME ALSOK Lineup—Services Helping Resolve Social Issues
The business concept of creating shared value (CSV) involves accurately understanding the issues faced bysociety and working to help resolve these through a company’s business. The ALSOK Group employed thisCSV concept in creating the HOME ALSOK brand in 2012. HOME ALSOK is a brand designed to match thediversifying range of customer lifestyles and provide solutions for the issues faced by each individual customer.

Comprehensive Lineup of Services Designed
to Ensure Safety and Security in the HomeThe HOME ALSOK brand is based on the concept of responding toa wide range of customer needs related, for example, to the declining
birthrate, aging population, and the depopulation of rural regions. It is
ALSOK’s mission to help individuals to resolve the issues they face, andwe must therefore respond to an exceptionally diverse range of issues.
Customers’ expectations for services differ greatly based on theirlifestyle, with examples of different lifestyles including nuclear families,
senior citizens living alone, and people living in duplexes.
To respond to customers’ various security needs dependent on
region, age, health condition, or family structure, ALSOK combines its
strengths in the area of systems, services, quality, and alliances in orderto provide a diverse lineup of products and services.

Products and Services Matched to a
Diverse Range of Lifestyles
The HOME ALSOK brand for individual users provides a range of
products and services for various lifestyles. One mainstay offering is
HOME ALSOK Premium, an advanced home security system developed
in response to public demand that features Internet-based remotecontrol and image monitoring capabilities coupled with smartphone
linkage. In addition, we offer the HOME ALSOK RUSUTAKU SERVICE,
which provides patrolling of houses and premises that are not regularly
occupied. Further, we provide the HOME ALSOK LADY’S SUPPORT
service to protect women living alone from stalking and other threats.
Adding to this robust lineup, HOME ALSOK MIMAMORI SUPPORT,
launched in 2013, helps protect the safety and security of senior citizens.

HOME ALSOKRUSUTAKU SERVICEHOME ALSOKLADY’S SUPPORT

Robust Lineup of New
Services for an Aging Society

Houses that are left vacant forextended periods of time are often
insufficiently managed, making themtargets for crimes such as arson andburglary, and this matter is becoming
a major social issue. HOME ALSOKRUSUTAKU SERVICE protects
vacation houses, second houses, andother homes that are not regularly
occupied by patrolling the premises
and providing support for collecting
mail and otherwise maintaining order.

The HOME ALSOK LADY’SSUPPORT service is designed toprotect women living alone from stalking and other threats. This service
relieves the fear of crime that was foreign to such women when living with
their families. By eliminating this fear,
this service allows these women tolive in safety and security, and also
provides peace of mind to theirfamilies.

Aiming to help resolve the issues created by the declining birthrate andaging of society, we established
ALSOK CARE Co., Ltd., in October
2012, and began in-home nursing
care services to senior citizens. Byutilizing the management resources
and infrastructure that we have cultivated while providing security services
to develop businesses geared toward
senior citizens, we will offer highvalue-added life support services that
go beyond the boundaries of traditional nursing care. Through these
efforts, we aim to provide multifaceted
responses to customer needs.

CSR Report 201412❶Materiality Report 1

Consumer

Responding to Changing Customer Needs

HOME ALSOK MIMAMORI SUPPORT
Senior citizens currently makes up 25.1% of Japan’s total population (as of October 31, 2013), and the number ofsenior citizens is expected to grow into the future. The ALSOK Group aims to step up its response to this issue faced
by Japanese society with HOME ALSOK MIMAMORI SUPPORT, a new service that provides safety and security
combined with convenience for senior citizens.

HOME ALSOK MIMAMORI SUPPORT—A Comprehensive Service for Protecting
the Lifestyles of Senior Citizens
The business concept of CSV involves accurately understanding theissues faced by society and working to help resolve these through the
products and services that a company provides. The ALSOK Group
employed this CSV concept in creating the HOME ALSOK brand in
2012. HOME ALSOK is a brand consisting of various products andservices that match the diverse range of customer lifestyles and provide
solutions for the issues faced by each individual customer.
Launched in September 2013, HOME ALSOK MIMAMORI SUPPORT
is a service designed to address the issues created by the aging of the
population, a trend that is expected to accelerate into the future. The
most significant characteristic of HOME ALSOK MIMAMORI SUPPORTis the emergency call button located on the control terminals installed inuser homes. In the event of an emergency, the user can receive help
simply by pushing this button. Our security guards will rush to the scene
24 hours a day, seven days a week, and, upon confirming the situation,
take the appropriate course of action. Family members will be contacted,
and the security guards will call paramedics or perform cardiopulmonary
resuscitation (CPR) if necessary. In addition, this service provides
a consultation button. Should a user feel ill, they can press this button toaccess ALSOK’s healthcare center at any time of day or night. Users areable to consult our trained staff about their health condition, receive
information about medical institutions or nursing care facilities, or ask
other questions. Furthermore, information regarding a user’s healthissues and hospital records can be registered with ALSOK to smooththe process of turning a user over to the paramedics should an
ambulance need to be called. In this manner, HOME ALSOK MIMAMORISUPPORT utilizes the service managing skills and onsite response
capabilities of the ALSOK Group to provide comprehensive service forprotecting the lifestyles of senior citizens.

Safety and Security Combined with
Convenience and EaseIn developing HOME ALSOK MIMAMORI SUPPORT, convenience andease of use for senior citizens was seen as a priority alongside safety
and security. Control terminals used for this service have been significantly revised to feature an accessible and easy-to-use design that ismore intuitive for its target users. It is sometimes difficult to explain theconcept of home security to senior citizens, and we often fail to conclude
contracts because they have difficulty understanding the need for
installing devices, or find the control terminals troublesome to operate.

13

CSR Report 2014

To address such issues, every aspect of HOME ALSOK MIMAMORISUPPORT has been revised to be simple, easy to understand, accessible, and easy to use for senior citizens. This is true for the equipment
as well as for contracts, pamphlets, instruction manuals, and all otherparts of the service.
Going forward, we will continue to pursue
service improvements that incorporate socialchange and customer feedback as we
endeavor to provide senior citizens and theirfamilies with the utmost levels of safety andsecurity as well as convenience.

Interview with Two Representatives
We asked an employee involved in the planning and developmentof HOME ALSOK MIMAMORI SUPPORT and another responsible
for sales of this service what, from their differing perspectives, they
believe to be its social value. Also, we inquired as to their future
hopes for this service.

Simple Design that is Easy for Senior Citizen to Use

Security

Control terminals are compatible with a variety of additional
services that provide greater security.

Close at
hand

Control terminal can be used as free-standing units, and therefore
can be positioned close at hand.

Ease

With large symbols and buttons and easily heard voice messages
and alarms, control terminals provide ease of use to senior citizens.

HOME ALSOK MIMAMORI SUPPORT
control terminal featuring simple,
easy-to-use design
dimensions:
W180mm × H170mm × D39mm

Pursuing Higher Levels of Safety and Security through Coordination with Sales Frontline

Daiki Shimamura

When promoting sales of HOME ALSOK MIMAMORI SUPPORT, I place emphasis on coordination between the people in thefield who are in charge of conducting sales and those in Head Office divisions. The duties of Head Office divisions, which areresponsible for product planning and development as well as sales promotions, do not end with the development of a productor service. Rather, it is important for these divisions to solicit feedback from the sales people that actual meet with customers sothat this feedback can be incorporated into products. We must create products with greater value for customers through thistype of ongoing improvement.
The ALSOK Group has cultivated a corporate culture of actively collecting opinions from people in the field and querying them
about issues. I will always value this corporate culture, and I will encourage mutual communication with sales divisions accordingly. Through this type of communication, I hope to promote wide-spread use of HOME ALSOK MIMAMORI SUPPORT, with its
high social value, to help resolve the issues created by the aging of the population.

Assistant Manager
Planning Section, HOME ALSOK Department
Head Office
SOHGO SECURITY SERVICES CO., LTD.

Evolving HOME ALSOK MIMAMORI SUPPORT to Contribute to Society
The most common comment from HOME ALSOK MIMAMORI SUPPORT users is that they feel safe in their everyday lives justknowing that the control terminal is in their home. A security guard can be summoned at the push of a button, and support canbe received around the clock. Users frequently state that this system provides peace of mind not only to the enrolled seniorcitizen, but also to family members living separately. Nevertheless, I still see a number of issues when I visit people’s homes onsales calls. Customers are often vocal about the fact that our services currently lack the functionality required to meet the needsof senior citizens living in rental housing, something that is growing increasingly more
Saki Bando
common. Going forward, I hope to contribute to society by evolving HOME ALSOKHOME ALSOK Security Advisor
MIMAMORI SUPPORT as a tool for addressing such issues.
Funabashi Branch

SOHGO SECURITY SERVICES CO., LTD.

CSR Report 201414

Labor PracticeMateriality

Materiality

Labor Practice
Cultivating Human Resources and Buildinga Comfortable Workplace Environment
The ALSOK Group’s business is supported by the strong sense of commitment that every employee
feels toward their mission of protecting the safety and security of society. To cultivate these employees,
we hold trainings designed to endow them with the skills required by different business segments,
and also provide employees with a wide range of other educational activities, such as corporate ethics
training and self-development classes. Furthermore, the Company is actively promoting
work-life balance and diversity.

15

CSR Report 2014

eMateriality Report 2

Employee Skill Improvement Initiatives
The ALSOK Group realizes that human resources form the very foundations of its business activities, and is therefore
working to cultivate competitive, trustworthy employees that have strong potential for growth. To this end,
the Company is enhancing its employee education programs to help all employees exercise their full potential.
We also provide career development support and are working to build a comfortable workplace environment.

Characteristics of ALSOK’s Human
Resource Systems
Basic Approach to Human Resource Development
At ALSOK, we view employees as the most important resource underpinning our business activities. Reflecting this basic approach, wedevelop human resources that will help us realize our management
philosophy, which calls on us to “aim to be the best company.” In
addition to legal education pursuant to the Security Services Act, we
conduct a wide variety of employee training to enhance our security
services and foster employees with appropriate business skills. For
example, from the new employee level onward, we conduct training by
division, including sales, Electronic Security Services, Stationed Security
Services, Transportation Security Services, and development. Also, we
conduct training for specific employee ranks and for managers.
In all of these training programs, we further understanding of thefundamental spirit that we have adhered to since our foundation, which
is described in our management philosophy, management policies, andcode of conduct. At the same time, we have established a training
system to ensure that we put this spirit into practice in all aspects ofbusiness operations.
Further, training for new employees at Group companies is conductedby the Sohgo Security Alliance Education and Training Union, which has
an office in ALSOK’s Head Office.
Since a television program featured the training we conduct for new
employees, we have received numerous requests from schools andcompanies to conduct training on their behalf. Catering to this demand,
we have been training non-ALSOK employees at ALSOK JUKU (ALSOKWorkshops) to improve their basic skills as members of society since
September 2011.

VOICE

Employee Skill Improvement Program
The Company provides various opportunities for employees to develop
their skills outside of group trainings and on-the-job training. At the sametime, we support individuals looking to pursue further education on theirown accord, and we have implemented the Employee Skill Improvement
Program to help facilitate the improvement of employee skills.
Specific measures conducted through this program include providing
support for holding self-development classes, helping develop an
environment conducive to reading, coaching education representatives
at branches, and bolstering the amount of educational materials anddigital content made available for employees.
We believe that reading is an important venue for use by employees
pursuing self-development. Based on this belief, we opened the ALSOKLIBRARY, a Company library located in ALSOK’s Head Office, in June 2012.

Career Development Programs
Human Resource Development through Personnel Exchanges andInternal Open Application System
ALSOK aims to utilize capable employees, from young employees tomanagers, in a wider range of situations in order to develop such
personnel in people who can drive the profits of the entire Group. We
believe such efforts will strengthen Group management. To facilitate thistype of human resource development, we actively conduct personnel
exchanges between Group companies and with other companies andcentral government agencies. In addition, ALSOK has been recruiting
personnel for new businesses from its own employee base since theyear ended March 31, 2011. Through these efforts, we are discoveringand developing human resources able to work in and form the core oforganizations in a wide range of the Company’s business areas—fromstrategic businesses related to M&As, new businesses, and overseas
businesses through to sales and frontline operations. Going forward, we
will continue to support employee career development to strengthen thehuman resources of the entire Group.

Returnee from Personnel Exchange with a Government Agency
ALSOK has an internal application system that allows employees to test their skills at new businesses. By applying through this system,
I was seconded to the Ministry of Health, Labour and Welfare for two and a half years. This proved to be an invaluable experience that
exposed me to things that I would not have encountered in a private company. Specially, I was able to see first-hand the approach
toward work and superior task management skills of public servants, and the fast-paced work style that links these skills to actions.
Learning from these work habits, the range of tasks I could handle was broadened, andAkira Yoshida
I was able to grow as a person. Those two and a half years are something
Corporate Strategy Office
I treasure. Going forward, I will make use of the experience I gained on exchange toCorporate Planning & Administration Department
formulate business proposals from a more inclusive perspective. Guided by ALSOK’s
Head Office
SOHGO SECURITY SERVICES CO., LTD.
principles of protecting the safety and security of society, I will expand the scope of myduties to make larger contributions to the Company.

CSR Report 201416

Materiality Report 2

Promoting Diversity

Labor
Practice

Empowerment of Female Employees
Diversity is now more important than ever for ensuring the ongoing growth of a company, and it is important forcompanies to create comfortable workplace environments at which a diverse range of employees can work to theirfullest. As one facet of its efforts to promote diversity, ALSOK is working to empower female employees. The following
is an interview with two women working in different positions in the Company.

What was your reason
for joining the security services industry?
ChigiraI was interested in the job of protecting people’s lives andassets, and I therefore chose to go on a tour of Gunma Sohgo Guard
System Co., Ltd., during my third year of high school. Till then, I had astrong image that the security services industry was for men, and I thus
felt a little nervous. On this tour, I saw an all-female squad engage inelectronic security services. Seeing this made me think that I too could
work in this industry, and it was what inspired me to try it out.
Fujitsuka
I first joined ALSOK as an office worker. Before entering
the Company, I had thought that the security services business was only
for men. However, I soon learned that gender was not so much of anissue and that women were highly active in all areas of ALSOK. I havebenefited from this accepting work environment since.

What is the most difficult
aspect of your work?
Fujitsuka
I am now balancing work with raising my two children.
The most difficult aspect of my work is responding when one of mychildren has a fever or some other sudden ailment. However, mycoworkers and supervisors have always been exceptionally understanding and accommodating, something for which I am very grateful.

Mai Chigira
All-Female Squad Commander
Electronic Security Services Squad
Electronic Security Services Department
Gunma Sohgo Guard System Co., Ltd.

I took childcare leave when both of my children were born, for a year andseven months when my eldest was born and one year for my second
child’s birth. My return to work was hassle free both times as theCompany smoothed this process by remaining in contact with me during
my leave as well as providing me with company newsletters and otherinformation about what was transpiring at work. I am currently using
ALSOK’s shortened work-hour system, and I have never felt impeded in
my work. The people I work with are incredibly understanding andsupportive, I am very grateful for this.
ChigiraWorking in the security services industry, the atmosphereis always tense, for both men and women, and it is therefore difficult toremain focused and vigilant. As a woman, patrolling a site for an
extended period of time can be quite draining in terms of stamina. As
I am also in the position of commanding an all-female squad consistingof 18 security guards, my duties
therefore go beyond responding tomalfunctions of financial institution
ATMs. Beside routine security work,
I have to draw up work schedules
and provide instruction to membersof my squad. Managing an entire
squad is challenging, but I findmyself learning a lot in this positionand every day is very fulfilling.

In what regards have you felt that being awoman has been advantageous to your work?
ChigiraI feel that being a woman has its advantages when
responding to ATM malfunctions. When an ATM malfunction occurs, nomatter how fast we arrive at the scene, it will be meaningless if thecustomer does not like our attitude. When the customer waits for us tofix an ATM, they often feel uneasy or even angry. As a woman, I am able
to be more perceptive and empathetic toward these customers,

Midori Fujitsuka
Security Services Section
Security Services Department
ALSOK Saitama Kita Branch

17

CSR Report 2014

responding with a smile to defuse the situation and encouraging thecustomer to continue using our ATM services. Customers usually
suppose a male security guard to show up, so when a woman arrives on
the scene, it lightens the mood. I believe this is especially true withfemale customers.
Fujitsuka
My current position entails going to the homes ofcustomers subscribing to our emergency reporting services to installand program equipment, place sensors, and apply stickers. A large
number of my customers are senior citizens, and I believe that they often
feel more at ease with a woman
conducting these duties. In thepast, customers have told me
that, when they heard someone
from a security company wascoming, they envisioned a burlyman, and that they felt relieved
when a woman showed up.

As a woman, what sort of career plan
are you envisioning?
I want to continue to grow as a member of the ALSOKGroup, and I plan to remain at ALSOK even after marriage and childbirth.
I am also passionate about training younger employees as I hope tocultivate more highly capable and reliable female security guards. As for
my career, I am targeting a position from which I can manage allelectronic security service operations, not just all-female squads, andI will continue to hone my skills in order to achieve this goal.
ChigiraFujitsuka
I hope to experience a wide range of positions going
forward. At the moment, I want to treasure my time with my children,and I am most thankful for ALSOK’s understanding workplace environment, which makes it easy for me to balance work with parenthood.
Hopefully in the future, I will be in a position from which I can give
advice to other female ALSOK employees that are planning to getmarried or have children.

Complete Lineup of Support Systems for
Female Employees
ALSOK has developed a complete lineup of support systems for its
female employees to ensure that these employees can work withpeace of mind. Leave can be taken during pregnancy and before
and after childbirth, and we have reemployment systems for employees that have resigned for childbirth or parenting reasons. In
addition, we established various systems to support the nursing offamily members.
Due to these efforts, the Company has
been certified by the Tokyo Labour Bureau of
the Ministry of Health, Labour and Welfare as
a company having supportive child-raisingsystems. These strong support systems havehelped empower female employees in a wide
range of fields, including management as well
as sales and technical divisions and even in
actual security services.

Product Development from a Female Perspective
By its very nature, the security services industry is generally a difficult
field for women to advance in. Nonetheless, female employees areactive in various fields throughout the ALSOK Group, and we are
actively utilizing their unique perspectives and skills.
For example, HOME ALSOK LADY’S SUPPORT (see page 12)
was developed and brought to commercialization primarily by female
employees. This service addresses the social issues women face by
providing countermeasures for stalkers and other threats.

VOICE

Fine-tuned Support for Alleviating
Women’s Concerns

Thank you for giving us your time today.
Countless women are balancing their families with their work at the
ALSOK Group. Going forward, we will continue to build a workplaceenvironment that empowers female employees.

Yoko Takeuchi

HOME ALSOK Department
Head Office
SOHGO SECURITYSERVICES CO., LTD.

In developing HOME ALSOK LADY’SSUPPORT, the team discussed how we
could address the issue of stalking, acommon concern for women, from theperspectives of what we could do asa private company and what services asecurity company could provide. Even
after the product launch, we continue totake a fine-tuned approach toward alleviating the concerns of women living alone.
For example, product explanations andrelated sales calls are primarily conductedby female employees.

CSR Report 201418

Community
ommunity
Materiality

Community
Contributing to Local Communities
through Active Communication
The ALSOK Group’s services are based on providing safety and security, and our security services
business has continued to grow thanks to the trust of the communities we serve. Looking to givea tangible form to the “spirit of gratitude” described in our management philosophy, we are actively
addressing the issues faced by local communities as a good corporate citizen.

19

CSR Report 2014

yMateriality Report 3

Contributing to Local Communities
We realize that the ALSOK Group cannot survive without the communities it serves. In recognition of this fact,
we conduct various activities to express our “spirit of gratitude” toward these communities in a tangible form.
These activities include wide-ranging social contributions in the fields of social welfare, education, and sports.
We also conduct initiatives to make communities safer and more secure, such as crime prevention classes andactivities and support provided through our business operations.

Contributing to Social Welfare
ALSOK ARIGATO UNDOThe ALSOK ARIGATO UNDO movement was launched in 1967 as anembodiment of the “spirit of gratitude” originally defined by ALSOK’s
founder, the late Jun Murai. The goal of this movement is to reflect our“spirit of gratitude” for the benefits we receive constantly from the nationand society by contributing to society in Japan and overseas.
Donations from employees and executives concurring with its objectives fund this movement. Through monetary and non-monetary
donations, including those directed at disaster relief, this movement
supports social welfare, disaster relief, land mine removal, and welfare
services for senior citizens and people with disabilities.
Major Donations and Recipients through
ALSOK ARIGATO UNDO in the Year Ended March 31, 2014

Making Towns Safe and Secure
Implementing Crime Prevention Activities for Local Communities
The ALSOK Group makes a concerted effort to conduct crime prevention activities in local communities. Specifically, we carryout “blue light”
volunteer crime prevention patrols in the areas surrounding branch sites
every month. In addition, when on standby, employees conduct patrols
along the routes used by elementary school students when commuting
to and from school. In these manners, employees are forming a close linkwith communities through their efforts. They work to raise crime prevention awareness and encourage community members to help fight crime.
Furthermore, to spread first-aid awareness and knowledge among local
residents, we provide support on the use of automated external defibrillators (AEDs) at local events and disaster response training.
1

2

Monetary Donations
Recipient• Shirahasu Fukushikai (Social Welfare Corporation)• MEDECINS DU MONDE JAPON (Doctors of the World Japan)• United Nations World Food Programme• Japan Guide Dog Association• Japan International Volunteer Center• With Machida (Social Welfare Corporation)• Kamonohashi Project (Certified NPO)
• Tokiwakai Group (Social Welfare Corporation)

3

1 ALSOK Okayama Branch security fleet

vehicle on crime prevention patrol nearby
an elementary school

2 AED usage demonstration by

ALSOK Tama Branch

Monetary Donations for Disasters

3 Kana Eto of Kagoshima Sohgo Security

Disaster• Typhoon No. 4, Typhoon No. 7(Iwate, Yamagata, Niigata, Shimane, and Yamaguchi prefectures)• Typhoon No. 18 (Fukui, Shiga, and Kyoto prefectures)Services Co., Ltd., directing mock training
at prefectural police department as honorary
operating commander for a day

Non-monetary Donations
Items• Three welfare vehicles donated to welfare facilities• Paper binoculars assembled at support facility for people with disabilities donated to
the National Sports Festival of Japan in Tokyo© Natsuki YASUDA/
studio AFTERMODE
Women working at sundry factory run by
Kamonohashi Project in Cambodia

Welfare vehicle with wheelchair lift donatedto Hiroshima Komyo Gakuen

Community Participation—Crime Prevention Activities
Activity Types• Bank transfer scam prevention• Self-defense technique demonstrations(awareness promotion and actualat events
prevention activities)• Instruction, guidance, and protection of• Bank transfer scam prevention (patrols
childrenand educational activities)• Assistance for arresting criminals• Education geared toward eliminating• Bicycle theft prevention activities
illegal signs• Participation in the Inochi no Denwa• Participation in the Kodomo 110 Ban
support telephone hotline for people
children’s safe house programwith suicidal ideation• Crime prevention activities for local• Participation in activities advocating thecommunities
elimination of antisocial groups• Campaigns to prevent violent activities • Unscrupulous business prevention
in train stations• Prevention of juvenile crimes, thefts, etc.
• Crime prevention patrols (blue lightpatrols, children protection patrols, etc.) • Participation in street-side crime
prevention campaigns, etc.
• Crime prevention patrols (business• Provision of AED advice
district patrols, etc.)

CSR Report 201420

Materiality Report 3

Community

Contributions to the Safety and Security of Local Communities

ALSOK ANSHIN
NSHI
NS
HIN
N KY
K
KYOSHITSU
YOS
OSH
HIT
ITSU
IT
ITS
SU
U

The persisting trend of crimes targeting elementary school and other children has become a social issue thatmust be addressed to ensure children’s safety. Aiming to fulfill its responsibility as a good corporate citizen,
the ALSOK Group dispatches its security professionals to elementary schools throughout Japan to conduct the
ALSOK ANSHIN KYOSHITSU program.

Diverse Curriculum on Crime Prevention
and Lifesaving

Tenth Anniversary of ALSOK ANSHINKYOSHITSU, Now a Wide-Reaching andHighly Regarded Activity

ALSOK ANSHIN KYOSHITSU classes are designed to foster crime
prevention awareness among children through a curriculum that provides
hands-on experience together with opportunities to think critically.
Furthermore, we have developed separate curriculums for different
grade levels.
The curriculum for first and second graders prepares them to avoid
dangers when commuting to and from school. Third and fourth graders
are taught what to consider and how to deal with possibly problematic
phone calls when left home alone. Fifth and sixth graders are inspired tothink about the potential dangers areas within their town and discuss
about how one should act to remain safe in certain situations. In the year
ended March 31, 2013, we introduced a new program for fifthand sixth grade elementary school students based on the themeof the significance of helping
people and the importance of life.
This program is conducted bypracticing how to make emergency
calls and conducting hands-on
CPR lessons using an AED.

Based on our core management philosophy of practicing a spirit of gratitude, we conduct the ALSOK ANSHIN KYOSHITSU program tocontribute to the security of society. This program has continued forapproximately 10 years since 2004. When the program was started,
crimes targeting elementary school students and other children had
become a considerable social issue. Believing that it is our mission toaddress this issue as a security company, we began holding ALSOKANSHIN KYOSHITSU classes. These classes represent the first timesuch an initiative has been undertaken by a private security company. As
of November 2013, more than 1 million children had participated inthese classes, and this program has grown to become very widereaching and is highly regarded by teachers and guardians alike.

ALSOK ANSHIN KYOSHITSU class

ALSOK ANSHIN KYOSHITSU by the Numbers

Since its start, the ALSOK ANSHIN KYOSHITSU program has …

conducted

received positive
evaluations fromclasses.

%of teachers.

33,85897.1

been conducted at an
aggregate total of

7,438

elementary schools
across all of Japan.

taught

1,032,827
students.

As of March 31, 201421

CSR Report 2014

Interview with Two Representatives
Participating in Education as a Company to Protect the Safety of Communities

Takuro Seto
PR Section ( I )PR Department
SOHGO SECURITYSERVICES CO., LTD.

This year will mark the 10th year since the start of the ALSOK ANSHIN KYOSHITSU program. ALSOK is primarily asecurity company, and was lacking in educational expertise when this program began. As such, conducting classes was
initially filled with hardships and uncertainty. Nevertheless, volunteers from ALSOK across Japan were passionate aboutprotecting children and continued to practice and pursue modest improvements. As a result of these efforts, this program
is now highly regarded by society, and we receive countless requests each year.
To cultivate instructors of the highest caliber, we have created an internal credential system known as the ANSHINKYOSHITSU Master Certification System. We have also worked to develop a corporate culture that helps ALSOK ANSHINKYOSHITSU representatives at all operating bases, those individuals that have obtained the highest level of certification
known as Master III, pass their know-how onto other employees. In this manner, we have developed systems for continually improving class quality while encouraging a large number of employees to participate.
The ALSOK ANSHIN KYOSHITSU program is a way for ALSOK, a private company, to participate in education. We
believe that educating children, who will be responsible for shaping the society of the future, is an excellent way tocontribute to the safety of communities. We also view this program as an important initiative for contributing to thecreation of a sustainable society as a security company, and one in which we can see the smiles we create. Goingforward, we will continue to conduct the ALSOK ANSHIN KYOSHITSU program in order to protect the smiles of as many
children as possible.

Expanding the Range of an Activity Support by Countless Employees
I learned of the ALSOK ANSHIN KYOSHITSU program shortly after joining the Company, and I went to watch several
classes. Seeing the enthusiastic faces of students encouraged me to take part in this activity, inspiring my choice tobecome an instructor.
I face many difficulties in conducting classes. Nevertheless, when children say things like “the class was fun and easy
to understand” or “the security services business is cool” or even just “thank you” after a class has finished, it makes
everything worthwhile.
My ability to continue being an instructor until today is thanks to the support of my coworkers. In the ALSOK ANSHINKYOSHITSU program, it is not only the employee at the podium that is contributing to society, it is all the employees that
support the classes. I feel it is my duty to create the foundations that will allow for a greater number of young employees
to take part in this program.

TOPICS

Tomoko Hanada
ALSOK ANSHIN KYOSHITSU
Master III Certification Holder
ALSOK Josai Branch

ALSOK HOTTO LIFE KOZA Dispatch Classes for Senior Citizens

With the aging of society, children are not the only targets of crimes; as seen in bank transfer scams and other crimes targeting senior citizens, crime is a problem for all of society. Realizing this fact, we began offering ALSOK HOTTO LIFE KOZA in
October 2013 as a class for senior citizens to teach them how to avoid crimes targeting their age group. ALSOK instructors
are dispatched to community aid centers and other facilities where community members gather to conduct classes thatallow senior citizens to learn about crime through fun activities like card games and quizzes. For people that have concerns
about their health or the health of their partner, we provide First-Aid Experience Classes that teach CPR and AED usage andeducate participants with regard to the type of symptoms that warrant immediately calling paramedics.
ALSOK HOTTO LIFE KOZA classconducted by ALSOK Josai Branch
employees (Left: Hajime Onishi;
Right: Tomomi Shimura)

CSR Report 201422

Operating

Materiality

Materiality

ting Practice
Providing Trustworthy Security Services
The ALSOK Group’s services are founded on the strong trust of society. Stringent compliance with
relevant laws is absolutely essential, and we must also practice strong corporate ethics. The Company
therefore places compliance among its highest management priorities, and the Group is united as one inadvancing compliance initiatives. Business continuity is another crucial area of focus as ALSOK is
supporting an important part of social infrastructure.

23

CSR Report 2014

Materiality Report 4Groupwide Compliance Initiatives
ALSOK has established a Compliance Committee, which is headed by the executive officer in charge of compliance,and strives to install an unwavering awareness of compliance in all executive officers and employees based on thecompliance rules formulated in 2002. We also conduct social contribution activities with energy and dedication toexpress our spirit of gratitude in a tangible form.

Compliance
Focus on Compliance
The Company recognizes the importance of compliance, and conducts
its security services operations while observing the Security Services
Act. The Company has a Compliance Committee, which is headed by
the executive officer in charge of compliance. The committee strives toinstall an unwavering awareness of compliance in all executive officers
and employees based on the compliance rules formulated in 2002, andperiodically verifies the status of compliance in business and otheractivities.
Groupwide Compliance Initiatives
The ALSOK Group conducts Groupwide compliance initiatives that are
principally based on established common themes.
In accordance with the theme for each respective year, interdivision
coordination is pursued to cultivate the development of a compliancebased mindset.
In the year ended March 31, 2014, we worked to cultivate andentrench awareness with regard to six themes, each of which waspromoted over a two-month period. The themes were (1) proper submission of legally mandated forms and thorough compliance with the
Security Services Act, (2) strict compliance with traffic laws and internaltraffic rules and improvement of driving manners, (3) stringent labor
management to prevent excessive work hours and unpaid overtime, (4)compliance with laws and regulations relevant to security service operations, (5) compliance with laws and regulations relevant to sales, and (6)complete prevention of information leaks through appropriate use of IT
systems. After each two-month period, reports on activities conducted
and their results were requested for the Group companies as well asfrom the Company.

TOPICSALSOK Hotline
Expanding Scope to Group Companies
The ALSOK Hotline was set up in April 2004 to facilitate reporting andconsultation regarding harassment and other inappropriate corporate
behavior. If directors and employees encounter legal issues, improper
conduct, or unethical behavior, they are able to report such instances
using this venue without fear of detrimental treatment.
Characteristics of the ALSOK Hotline include (1) protection of thereporter, (2) prevention of detrimental treatment, and (3) the ability toreport anonymously. These roles form the foundation of this internalreporting system. We view compliance as an important issue needing tobe addressed on a Groupwide basis, and the scope of this hotline isbeing expanded to include Group companies for this reason. As of
March 31, 2014, the ALSOK Hotline
was available at the Company and 42
Group companies.

Ethics education booklets
distributed to employees

Eye-catching advertisements using illustrations

Visible Compliance Promotion through Educational Posters (ALSOK Suruga Co., Ltd.)As part of its efforts to foster compliance awareness, ALSOK Suruga Co., Ltd., displayed compliance posters
made by employees based on the compliance theme of that two-month period.
These posters have been well received by employees, many of whom have expressed the opinion that theposters are easier to understand than verbal explanations or documents due to their visual nature. Several
employees have stated that the posters have given them a concrete understanding of the laws and regulations
related to their company and their line of work, effectively improving their awareness of compliance. In this manner,compliance awareness is up throughout ALSOK Suruga.
Compliance education posters made by employees

CSR Report 201424

Materiality Report 4

Essential Business Continuity Initiatives for a Company
Supporting Social Infrastructure
In preparation for extraordinary circumstances, such as large-scale natural disasters and accidents, the Company
has established a business continuity plan (BCP). Based on this BCP, we acquired certification under ISO 22301,
a standard for business continuity management systems (BCMSs), in March 2014.

Business Continuity—A Crucial Concern
for Security Companies
ALSOK’s main business is to protect the safety and security of people,
meaning that we support an important part of social infrastructure. For
this reason, it is absolutely essential that we prepare for unpredictabledisasters and accidents, and ensure that we can continue business
operations even under extreme circumstances. In fact, we believe thiscrucial concern also represents one of the Company’s responsibilities
toward society.
We have continued to conduct practical trainings at our Head Office
as well as at regional headquarters and other offices that were fine-tuned
to simulate a wide range of disturbances. In addition, specific response
procedures have been developed for such disturbances, which include
large-scale earthquakes and other natural disasters, damages to facilities, and an outbreak of a new strain of influenza.
ALSOK recognizes that there is no defined endpoint for BCPs, andthat there is always room for improvement. Partially influenced by theunprecedented Great East Japan Earthquake of 2011, we realized theneed to further improve our BCP. Accordingly, we began working toacquire certification under ISO 22301, a standard for BCMSs, in July
2013. This certification was received in March 2014.

BCM Committee members

VOICEGroupwide Sharing of Issues throughImprovement Provisions
One notable characteristic of our efforts to receive BCMS certification
was the implementation of ongoing improvements to BCP systems.
When examining ALSOK’s previous BCP from the perspective of BCMS,
we found that, while the planning and implementation elements werefunctional, the BCP was lacking in provisions for driving improvement.
As such, the move to acquire certification differed greatly from previous
BCP initiatives in the amount of emphasis that was placed on improvement provisions. For example, we created a system through whichissues that arise during simulations and drills conducted at individual
offices are reported to administrative divisions so that improvement
proposals can be drafted and communicated back to each office. This
framework enabled us to strengthen our guidelines for smoothly
maintaining business continuity and realizing restoration.
When inspecting our business continuity systems, the certification
institution identified issues and praised accomplishments we had notbeen aware of. As a result, the inspection effectively boosted awarenessat all offices, enabling employees to advance BCP initiatives with more
confidence. This was another significant benefit of receiving thecertification.
Going forward, it will be important for us to utilize the improvement
provisions that have been developed to further enhance our resiliency tounforeseen circumstances. For example, in providing transportation
security services, we are addressing the issues regarding transportation
networks and fuel with measures like using motorcycles and bicycles indaily operation. Through such concrete responses, we will work tobetter live up to the expectations of society.

Proof of BCMS certification

Look Back on the Certification Process
The processing of receiving BCMS certification reaffirmed the weight of the social responsibility present in our business. As a security
company, we must be able to fulfill our responsibilities toward society, even under extreme circumstances. To accomplish this, we mustof course reinforce our facilities and information systems. However, of equal importance is strengthening the human resources that will
make use of this infrastructure. ALSOK’s BCP trainings have always been conducted on the individual-office level, with each officeconducting unique trainings. As such, the issues and insight found through trainings at one office were often highly applicable to theother offices. The newly established improvement provisions enable us to share issues and insight
Makoto Namba
throughout the Company, and I believe this will be a significant advantage going forward.
Assistant General Manager
CSR Office
SOHGO SECURITY SERVICES CO., LTD.

25

CSR Report 2014

Materiality Report 4

Protection and Management of Information Assets
The ALSOK Group realizes that properly protecting and managing information assets is an important task
for management. For this reason, we have established the Basic Information Security Policy and are constructing
systems to ensure that appropriate precautions are always taken for information leaks and other information risks.

Measures for Protecting and Managing
Information Assets
Basic Policies for Information Security
The ALSOK Group collects information from customers when concluding
security contracts. Therefore, protecting and managing information
assets are essential to conducting security operations.
With this in mind, we established the Basic Information Security
Policy in 2004. Forming the basis for Companywide information security
efforts, this policy is applied to all employees, including executive
officers, and all the information assets that we hold.
In regard to personal information, ALSOK has established the
Personal Information Security Policy and has also developed internal
personal information security regulations and systems. Related training
and educational programs are also conducted. These measures areapplied to all Group companies. In these ways, we ensure that personal
information is properly protected.
IT System Security Measures
The ALSOK Group carefully monitors all computer servers that areconnected to the Internet to determine whether or not they are vulnerable to threats. We are thereby constructing systems that allow security
measures to be put in place immediately should a server be determined
to lack necessary security precautions.
In April 2012, with the aim of developing an understanding of therisks of computer viruses and educating employees, we began
conducting internal drills to prepare for cyber-attacks utilizing “targetedemails*.” In addition, we have installed into all office computers softwarethat helps prevent information leakage due to the loss of removable
memory media by setting limitations on saving files onto such media.
Further, we periodically check employees’ private computers that areused at home to confirm that the employees do not have any file-sharing

TOPICS

software installed or business data saved to their hard disk. This enables
us to ensure the safety of non-work use computers as well.
* A type of cyber-attack involving emails sent to specific companies or individuals with the aimof attacking their systems or leaking confidential information

Strengthening Systems for the Protection andManagement of Information Assets
Aiming to bolster its protection and management of information assets,
the ALSOK Group is promoting the acquisition of certification under ISO
27001, which is the international standard for information security
management systems. As of March 31, 2014, the Company and 15
Group companies have acquired this accreditation.
In addition, the Company plans to establish a task force to be called
the Computer Security Incident Response Team (CSIRT) as a precaution
for the risk of cyber-attacks and other serious information security
incidents.
Reinforcing Personal Information Management Systems
As a security company responsible for protecting people’s lives andassets, ALSOK realizes that the trust of customers forms the basis for its
operations. Striving to achieve even higher levels of personal information
management, the Company acquired PrivacyMark® accreditation in
July 2013.
The Company believes that promoting stringent personal information
security management will in turn help improve the quality of services
provided to customers.
The PrivacyMark System® is a system established by the Japan
Institute for Promotion of Digital Economy and Community(JIPDEC) to assess private enterprises that take appropriate
measures to protect personal information. Compliant enterprises
are granted the right to display “PrivacyMark” in the course of
their business activities.

Development of Security Services that Protect Customers’ Information Assets

In today’s Internet-linked society, we face various threats, such as cyber-attacks and computer viruses.
The ALSOK Group realizes the importance of information security, and has therefore established internalmanagement systems for this purpose. In addition, we are now providing the technologies and expertiseborn out of our own measures as information security services for customers. For example, we provide
services that monitor customers’ computers 24 hours a day to protect against information leaks andInternet-related threats. In addition, we launched a website falsification detection service in January
2014. This service provides a solution to the recent rise in Internet-based money transfer scams byquickly detecting falsifications of a customer’s website. In this manner, the service protects viewers of the
webpage from becoming victim to such scams while at the same time preventing web design companies from being charged with responsibility for such scams. Going forward, ALSOK will continue to use
its security services expertise to provide these and other services that meet present-day needs.

CSR Report 201426

Consideration for the Global Environment

Global environmental concerns are common issues for all humanity. For this reason, the Company is working to reduce the environmental impact of its operations and has set concrete goals.

Energy Use and Environment Impact
Reduction
Concerted Group Effort to Reduce Energy Use
An April 2010 revision to the Act on the Rational Use of Energy classifies
the Company as a special company that uses energy exceeding a specified volume, which is calculated by converting the use of electricity, gas,kerosene, and other energy sources into kiloliters of crude oil.
Consequently, we are required to reduce energy usage by 1% or more
per year versus the level of the year ended March 31, 2010.
Mindful that we have many offices (facilities) and vehicles for business
use throughout Japan, we prepared the Medium- to Long-Term
Environmental Management Plan in the year ended March 31, 2010.
Based on this plan, the Company is making a concerted effort to reduce
electricity usage volumes and the amount of fuel vehicles use.
In addition, we analyze the usage patterns of every bank ATM wemanage throughout Japan in order to determine the optimal routes forchecking these ATMs. Through this process, we are able to replenish
and collect cash more efficiently without impeding customer convenience, which remains our top priority. These efforts consequently allow
us to limit the number of unnecessary ATM checks, effectively reducing
fuel usage and CO2 emissions associated with the travel involved inthese checks.
In the year ended March 31, 2014, we cultivated a mindset focusedon electricity conservation among employees, while also converting
vehicle standby positions in the Electronic Security Services segment tofacility standby positions and actively introducing fuel-efficient vehicles
and motorcycles into our fleet. At the same time, with the aim of reducing
vehicle traveling distance, we developed more-efficient routes for use bysales staff on sales visits and lowered the number of technicians placedon night duty.

As a result, we achieved a 7.7% reduction in electricity usage
in comparison with the year ended March 31, 2011, the year in which weestablished reduction goals. This decrease was accomplisheddespite the increase in the number of offices and the record-breaking
summer heat.
However, vehicle fuel usage volumes increased 1% year on year, to
9.6 million kiloliters. This increase was due to the rise in vehicle traveling
distance following the expanded range of business activities in theTransportation Security Services segment, the impacts of which offset
the benefits from introducing into our fleet hybrid-electric vehicles,
motorcycles, and pedal electric cycles. Nevertheless, fuel efficiency perliter of fuel used increased, and we will continue working toward converting our entire fleet into eco-friendly vehicles.

Reduction of Security Vehicle Energy Use
Introduction of Fuel-Efficient Vehicles with
Low Environmental Impact
Vehicles are a major part of the ALSOK Group’s operations. However,
we are actively introducing hybrid-electric vehicles, electric vehicles,
motorcycles, pedal electric cycles, and other fuel-efficient vehicles withthe aim of converting our entire fleet into eco-friendly vehicles. In addition, we are pursuing further fuel savings by promoting idling stops andeco-friendly driving techniques.
As of January 31, 2014, ALSOK’s fleet contained 383 hybrid-electricvehicles, 675 motorcycles, 3 electric motorcycles, 163 pedal electric
cycles, and 402 bicycles*1. In addition, we have begun introducing liquid
petroleum gas-powered vehicles and motorcycles*2 at certain branches inorder to further reduce our environmental footprint.
*1. Source: CSR Office, SOHGO
SECURITY SERVICES CO., LTD.
*2. Liquid petroleum gas-poweredengines emit 12%–15% less CO2
than gasoline engines andapproximately 6% less CO2 thandiesel engines with the sameemission class and fuel-supply
method. Accordingly, liquid petroleum gas is seen as the cleanestof all fossil fuels.

Hybrid vehicle that was introduced in ALSOKNarita branch

Office Energy Conservation
Office Computer Electricity Conservation Measures
ALSOK is actively working to reduce the amount of energy consumed in
its offices. As an energy conservation measure for office computers, wehave configured all office-use computers to shut off their monitors after
five minutes of idleness.
Further, in the year ended March 31, 2014, we replaced approximately 2,150 aged computers with new computers boasting superior
levels of energy efficiency. This enabled us to realize a 9% year-on-year
reduction in electricity usage.

27

CSR Report 2014

Corporate Governance

Aiming to facilitate the exercising of its management philosophy,
the Company has developed a structure for corporate governanceand a framework to address the various management risks, and at
the same time endeavors to ensure the impartiality and transparency of management.

ALSOK’s Corporate Governance
Basic Corporate Governance Policy
The ALSOK Group advocates “contribution to public welfare” as one ofits management guidelines, and focuses its efforts on ensuring public
safety, an indispensable part of human existence. Meanwhile, to continue
to be a corporate group that is trusted by all stakeholders, we strive toreinforce Groupwide corporate governance with measures that separate
managerial execution and oversight functions, allow swifter decision
making, establish and encourage strong corporate ethics, and provide
transparency in business management. Going forward, we will target thedevelopment of organizational systems that ensure even more-effective
governance.
Effective Corporate Governance System
The Company’s Board of Directors consists of eight directors, two of
which are outside directors. ALSOK also employs the corporate auditor
system and has established the Board of Corporate Auditors, which
consists of four corporate auditors, three of which are outside corporate
auditors. Due to the above, the Company believes that the corporate
auditors are able to conduct effective audits and that the governancecontrols for management are functioning properly.
The Board of Directors meets, in principle, once a month, and is
responsible for making decisions regarding important management
issues and overseeing operational execution. The Management
Committee, which is headed by the chairman and representative
director, meets twice a month, in principle. This committee is responsiblefor deciding what issues are to be presented to the Board of Directors
and discussing business policies based on decisions made by the Boardof Directors.

The Board of Corporate Auditors meets, in principle, once a month.
There is one corporate auditor who attends meetings of the Management
Committee, monitoring it to ensure the appropriateness of managerial
execution.
ALSOK strives to clarify the division of roles in management oversightand business execution as well as expedite management decision
making. To this end, it implemented the executive officer system in 2002,
an in-house company system in 2010, and also appointed a chief executive officer (CEO) and chief operating officer (COO) on April 1, 2011.
Activities of Independent Officers
The Company’s two outside directors and three outside corporate
auditors all meet the criteria for being designated as independent officers
as stipulated by the Tokyo Stock Exchange. Outside directors coordinate with outside corporate auditors and attend meetings of the Boardof Directors at which they monitor management from an independent
standpoint. The outside corporate auditors periodically exchange information with the Inspection Department and the independent auditing
corporation employed by the Company, enabling them to effectively
evaluate the appropriateness of Internal Control Operations.

Internal Control Systems
Ensuring the Appropriateness of Business Activities
Based on the Companies Act and the Financial Instruments andExchange Act, the Company has established systems to ensure directors perform duties in compliance with all relevant laws and regulations
and the articles of incorporation and has also developed systems toensure the appropriateness of other operations. Further, we have established the ALSOK Charter, which compiles the basic philosophies wehave held since our founding—a spirit of gratitude and a samurai spirit—
to serve as a guideline for all of our corporate activities. Through theestablishment of the above-mentioned internal control systems, ALSOK
monitors the appropriateness of its financial reporting and businessactivities rigorously.

General Shareholders’ Meeting
Board of Corporate Auditors
3 Outside Auditors
1 Internal Auditor
Total: 4 (Includes two part-time auditors)

Board of Directors’ Meetings (Monthly)
2 Outside Directors
6 Internal Directors
Total: 8
Discussions about Operational
Policies on Business Affairs
Management Committee (Twice monthly)

Chairman and Chief Executive Officer (CEO)Committees
Risk Management Committee
Compliance Committee
Information Asset Management
Committee

Outside Audits by an Independent
Auditing Corporation: Accounting Audits Conducted by
Grant Thornton Taiyo ASG LLC

Internal Audits
President and Chief Operating Officer (COO)

Inspection Department

Head Office, Internal Company Divisional Management
Advisory Contracts with Attorneys in Specialized Fields

Operating Committee of ALSOK Company (twice monthly)
Executive Officers
5 Directors and Executive Officers
14 Executive Officers
Total: 19

Legal Consultation
Legal OfficeInternal Control Operations(As of June 25, 2014)

CSR Report 201428

CSR Management

To the Company, CSR entails remaining ever mindful of the expectations of customers and society at large and exercising its management philosophy based on always acting with a spirit ofgratitude and a tough yet fair, kind samurai spirit.

Fundamental Spirit and CSR Policy
Protecting the Safety and Security of Society
Since its founding in July 1965, the Company has continued to develop
its security services business in accordance with its fundamental spirit
defined by the two principles set out in its management philosophy: aspirit of gratitude and a samurai spirit.
These two principles of our fundamental spirit embody our strong
sense of commitment toward protecting the safety and security ofsociety. We believe that CSR entails faithfully exercising this fundamental
spirit and contributing to the resolution of the issues faced by customers
and society through our business activities.

Structure of CSR Ideals
Clearly Identifying Activities Based on theManagement Philosophy
Based on its management philosophy, ALSOK has established the
management policies and the code of conduct as well as a number ofregulations and internal rules. Further, the Company has outlined issues
to address in these activities, giving a clear structure to the CSR ideals.
The management policies set out the principles of how the ALSOKGroup should engage with its other stakeholders. The code of conduct
defines how all members of the Company, including employees andexecutive officers, should act in their daily business activities. The
Company has also established various regulations and internal rules
related to specific issues. Based on these guidelines, we are incorporating CSR activities into all areas of our business operations.

Strengthening the CSR Promotion
Framework
Advancing CSR Activities Centered on the CSR OfficeIn April 2011, the Company established the CSR Office. This office is
responsible for all areas of the Group’s CSR activities and undertakes
such tasks as managing the implementation of CSR activities andcommunicating CSR-related information to stakeholders.
In the year ended March 31, 2014, we took steps to enhance theinformation provided to stakeholders. CSR Report 2014 was designed
to focus on important CSR themes for the ALSOK Group. Meanwhile,
we provided more-robust information disclosure through our website tobetter practice accountability as a company. Going forward, we willcontinue to organize information on our CSR activities in accordancewith ISO 26000 as we construct our CSR reports and website andundertake other endeavors to further promote CSR.

CSR Promotion Activities
Holding of Internal CSR Lectures
The CSR Office leads efforts to inculcate CSR throughout the Company.
These initiatives included distributing an in-house quarterly magazine,
the ALSOK CSR Newsletter, and the CSR Activities Guide.
We also conduct a yearly lecture utilizing our CSR report that is incorporated into training for newly promoted managers. In the year ended
March 31, 2014, a total of 252 people attended such lectures. As aresult, our annual questionnaires continue to show year-on-year rises in
the understanding of CSR among employees. Targeting all employees,
including those of Group companies, our dedicated department, theCSR Office, will continue leading CSR education efforts.

Management Philosophy

Management
Policies
Code of Conduct

Contact: CSR OfficeInternal Regulations
and Rules

CSR Office
General Affairs Department
SOHGO SECURITY SERVICES
CO., LTD.
1-6-6 Motoakasaka, Minato-ku,
Tokyo 107-8511, Japan

We welcome any inquiries.

TEL. +81-3-3470-1972
FAX. +81-3-5411-1636
Email alsok-csr@alsok.co.jp

Detailed information on CSR activities not available in this report canbe found on the Company’s CSR website.

http://www.alsok.co.jp/company/society29

CSR Report 2014

Corporate Information(As of April 1, 2014)

Corporate Name:SOHGO SECURITY SERVICES CO., LTD.

Net Sales

Head Office:1-6-6 Motoakasaka, Minato-ku,
Tokyo 107-8511, Japan

Operating Income/Operating Income Ratio

Millions of yen

Millions of yen
20,000Established:

July 16, 1965

Capital:¥18,675,011,600

Net Sales:¥328,209 million(year ended March 31, 2014)

Fiscal Year-End:

March 31

Employees:(Consolidated) 28,091(Non-consolidated) 12,422

360,000

328,209%

18,932 8.0
5.8

270,000

15,000180,000

10,0004.0

90,0005,000

2.0

Business Operations: Head office / 10 Headquarters /65 Branches / 40 Offices /232 Sales Offices

0
FY

10

11

12

13

14

0
FY

10

11

12

13

6.0

14

0

Operating income (left axis)
Operating income ratio (right axis)

MANAGEMENT PHILOSOPHY

MANAGEMENT POLICIES
1 Fundamental Spirit

Society /Communities

Shareholders
and Investors

Under any conditions, we work hard to abide
by our core principles as exemplified in a samurai
spirit based on toughness, fairness, and generosity, and in a spirit of gratitude. We are also
committed to developing the human resources
needed to provide reliable services.
Clients

2 Priority
Our top priority is to provide security services ofthe first rank, as reflected in profits, while meetingshareholder expectations and enhancing thewelfare of our employees.

Employees

3 Basic Strategy

Our business operations are based on a management philosophy exemplified by a spirit of gratitude1 and a samurai spirit2. Our mission is to help
maintain safety throughout society, an indispensable element of our lives,
as well as to make constant improvements to become the industry’s leading
company.
1. Human beings in society agree to live and let others live. The spirit of gratitude is a humble feeling of thankfulness
to all the people and things around ourselves.
2. The samurai spirit embodies a strong and honorable concept of discipline, purpose, and the will to succeed
and develop.

Characteristics of CSR Report 2014
Acting in accordance with its management philosophy, the Company has continued to
conduct CSR activities based on the seven core subjects of ISO 26000, an international
standard for social responsibility.
In addition to these ongoing activities, in the year ended March 31, 2014, the Company
defined four material CSR themes to be addressed through its business as a security
company, and began strengthening activities based on these themes. In this manner, we
aim to promote more-practical CSR activities through our business activities. CSR
Report 2014 has been compiled based on these four material CSR themes, and primarily
contains information on related activities. On its CSR website, the Company plans tocontinue providing detailed information on activities by branches and Group companies
based on the seven core subjects of ISO 26000.

While we devote ourselves to security services,
we also seek to offer diversified services to meetcontemporary demands to the extent madepossible by our cumulative expertise in the areaof security operations.

4 Contributing to Society
In the spirit of service, we adhere to all government security policies and seek to make positive
contributions to society.

Reporting Period: April 1, 2013, to March 31, 2014 (includes some activities fromoutside the reporting period)

Scope:The Company, its 59 consolidated subsidiaries, and its 9 affiliates
accounted for under the equity method (In cases where the scope
differs, it will be redefined accordingly.)

Publication Date: June 2014
Cautionary Statement Regarding Forecasts and Projections
Statements in this CSR report include forecasts and projections based on the management policies and business plans of the ALSOK Group. These forecasts and projections
are made in consideration of the information available when this report was prepared.
Accordingly, subsequent changes in the operating environment could influence actual
performance.
CSR Report 201430

incLuded in FtSe4good index For Seven
conSecutive yearS
Sohgo Security ServiceS co., Ltd.
1-6-6 Motoakasaka, Minato-ku,
Tokyo 107-8511, Japan
URL http://www.alsok.co.jp/ir/en/

The socially responsible investment (SRI)
index FTSE4Good Index has selected
ALSOK for inclusion for seven consecutive
years since 2007. This index comprises
companies recognized as meeting social
responsibilities with regard to environmental,social, and human rights issues. This makes
it an important index for investors concerned with environmental, social, andgovernance (ESG) issues, and we believe
our inclusion reflects a favorable evaluation for our corporate social responsibility(CSR) initiatives• TOKYO SKYTREE TOWN® is a registeredtrademark of TOBU RAILWAY CO., LTD.,
and TOBU TOWER SKYTREE CO., LTD.
• PrivacyMark® and PrivacyMark System®
are registered trademarks of the Japan
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and Community.