C SR R e p o r t
2 013

For the Beautiful Futureof the Earth-060002
A-（2）Printed on environmentally friendly
FSC-certiﬁed paper using wood fromproperly managed forests

Printed on paper made with wood fromforest thinning.
Morino Chonai-Kai (Forest Neighborhood
Association)--Supporting sound forest
management.

The TANAKA Groupsupports an initiative
to preserve forests bypromoting the use ofdomestic timber.

This report is printed using
vegetable oil ink.

Printed by waterlessprinting method, which
produces no hazardous
waste liquid.

This report uses a
Universal Design (UD)font which is easy toread.

CONTENTS
02 Message from the President

Businesses of the TANAKA Group04 Business Locations of
the TANAKA Group

Industrial Products

We pursue the full potential of precious
metals as products that underpin
industrial development. In recent
years, we have focused on medicine,environment and energy, which are
increasingly important sectors on a
global scale.
● Au and Ag related business● Chemical recovery business

06 Organizational Governance●Corporate Governance●

CSR Management

08 Human Rights●

Respect for Human Rights● PGM-related business● HD target business● Catalyst development business● BW business

09 Labor Practices●

Employment and Human
Resource Development●

Safety and Health● Plating business

12 Environment●

Environmental Management●

Business Activities andEnvironmental Impact●

Initiatives to Reduce
Environmental Impact

16 Fair Operating Practices●

Precious metals for jewelry

Assets bullion

Jewelry shines brightly in various scenes of life.
We oﬀer jewelry with reliable quality that is
worth treasuring for a long time.

Precious metals can be used as assets. We
produce and sell gold and platinum bullion andcoins with reliable quality while also oﬀering
accumulation plans.

18 Consumer Issues●

In accordance with the new Corporate Philosophy and● Jewelry● Artifacts● Bullion

the TANAKA Group strives to improve communications● Memorabilia and gifts● Gold and other coins● Buyback and recycling● Accumulation plansbetween employees in the daily operationsin the business activities.

22 Security, BCP/M,
23 Financial Data/

This ﬁscal year, we named the initiative
Challengeship

Social Contribution Activities

Risk Management

while all Group companies continuously unite their efforts

to improve communication

Customer Engagement

20 Community Engagement●

Code of conduct established in October 2012,

Compliance

About this Reportand createdthe symbol mark to promote it more vigorously.

24 Third-party Opinion
25 Questionnaire Results
TANAKA is accredited as a Good Delivery Referee for goldand silver by the London Bullion Market Association (LBMA),
and also appointed as a Good Delivery Referee for the
London Platinum & Palladium Market (LPPM). In both cases,
TANAKA is one of the only ﬁve Good Delivery Referees in theworld (and the only one in Japan), which are responsible forassessing Precious metals melting technologies and analyticalskills of all accredited gold and silver reﬁners.

TANAKA CSR REPORT 2013

TANAKA CSR REPORT 201301

e-Challenge / Six major target markets to create new businesses for TKG

Message from the President

While promoting continuous business developmentin the new economic environment, we are enhancing
preparedness for emergency situations.
We are also focusing on social contribution activities,
such as support of Japan s Paralympic athletes,and moving forward to be a company that makes people
and society shine brightly.

02 TANAKA CSR REPORT 2013

e-Challenge* and (3) Eradication of unsafe conditions,
we will add (4) Selection and concentration ofbusinesses and (5) Strengthening of CSR and BCP tothe main subjects in ﬁscal 2013 to establish ﬁve key
pillars in our corporate activities.
As an initiative for (1) Strengthening of employee
training, which is based on our belief that people are
the fundamental for business continuity, we areplanning a see and learn training program. In ourGroup, busy sections sometimes receive personnel
support from other sections. The support staﬀ madesome positive comments such that they enjoyedsupporting other sections because they had newexperience and that they got to know new people. It
was surprising because we expected them tocomplain about unfamiliar jobs. We reviewed thisexperience in the examination of our training
programs, and decided to adopt a program to actively
send employees to other sections for personnel
development.
Through (2) Strengthening of e-Challenge, we aim
to establish new core businesses for the future of
the TANAKA Group, and have decided to try toenter six markets of automobile, semiconductor,
home electronics, environment & infrastructure, life
(medicine, health and food) and new energy.
As to (3) Eradication of unsafe conditions, the eﬀorts
of our employees resulted in reduction of unsafe
conditions and unsafe actions in the previous ﬁscal
year. Although accidents and disasters in ourworksites are decreasing each year, we have notreached the target of reducing accidents by 50%. I
have ordered CSR Promotion Department to further
enhance our commitment to elimination of unsafe
conditions and eradication of unsafe actions.
Meanwhile, traﬃc accidents keep increasing, and it isurgent to take fundamental measures to reduce them.
We are now analyzing the traﬃc accidents that haveoccurred from various aspects, including whether wecaused it or we were victims, as well as age, gender,
car color and the time of occurrence. Other ongoing
initiatives to prevent traﬃc accidents include
preparation of a sticker to place on the rear of thevehicles of our employees commuting by car toprevent rear-end collisions.
In our eﬀorts for (4) Selection and concentration ofgroup activities, we currently focus on the industrial
business among the three businesses operated by the
TANAKA Group, namely industrial, Assets and jewelry.
It is scheduled to divide all activities in the industrial

Semiconductor
Power type, memory, logic,
magnetic, HD...

New energy
PV, FC, superconductivity,
smart grid...

Precious
metalsLife (medicine, health and food)
Medical, surgical, life science...

business into those on which we will place moreemphasis, those which we should maintain at theconventional level and those from which weshould withdraw by September this year. This
process will be applicable to the Assets andjewelry businesses as well as indirect sections.
The idea of selecting what we should do andconcentrating on it is similar to that of 3S, namely
Seiri (orderly disposition), Seiton (neat arrangement)
and Seiso (cleanup), and this process can beconsidered to be 3S for business continuity.
For the last pillar of (5) Strengthening of CSR and
BCP, we took a wide range of measures to prepare
for earthquake disasters last year, including
establishment of Osaka Second Headquarters andoperation of BCP with the system where the top
executives are divided into two to stay and work in
Tokyo and Osaka in turns and structure to have
two bases for the computer system in the Tokyo
Metropolitan Area and the Kansai Region, as wellasstockpiling of precious metal materials,
maintenance of product inventory to ensure delivery
to customers and stockpiling of light oil to ensure
the distribution line in the Shonan area. This year, weplan to construct storm surge barriers in the Shonan
Plant, which is located near a river.
The TANAKA Group considers social contribution
activities to be one of its objectives for business
continuity. In ﬁscal 2012, from our wish to help those
who take on challenges with integrity and patience,
we became an oﬃcial partner of the Japan Paralympic
Committee (JPC) and sponsored the Japanese team

Recycling

Home electronics
Communications, smart phone,
PC, LED, EL, PE, display...

Environment & infrastructure
Water, electricity, gas, railway,
space, robot...

at the London Paralympic Games. While Paralympic
athletes in Japan have more opportunities to becovered by media these days, which is leading tobetter understanding of them, recognition of them isstill insuﬃcient in comparison with other sports. As aresult, Paralympic athletes have diﬃculty in ﬁnding
sponsors, which limits their activities. I feel that our
support as an oﬃcial sponsor has contributed to thestrengthening of the Japanese athletes.
We also agreed on the purpose of the Robot Contest
for technical college students, and started to support
them, sending a supporting message Shine your ideas
and advance to the future! We hope that our
ﬁnancial support of the young contestants willcontribute to Japan s manufacturing sector in the
future when they will play leading roles in it. I actuallywent to a competition to support the students, andwas overwhelmed by their passion.
Lastly, I made a calligraphy work for TANAKA Group
employees in the beginning of this year. This work
represents my message to them: Do not be too
mellow but spiky. Each one of you
should be a star with a smile. The
TANAKA Group believes that acompany where people shine
brightly also makes society shine
brightly. With this motto in mind,
we will continue to promote our
CSR activities.

Message from the President

Two years have passed since the Great East Japan
Earthquake. While the scars of the disaster still linger in
the aﬀected areas in the Tohoku region, local people
are making desperate eﬀorts to regain their life. I would
like to express my respect for their strength.
I sincerely hope that those who were forced to movefrom their homes near the Fukushima nuclear plantand still live temporarily in other parts of Japan canreturn home as quickly as possible.
In 2012, Japan had a sequence of good news such ascompletion of the Tokyo Skytree, good performance ofJapanese athletes in the London Olympic Games andthe award of the Nobel Prize in medicine to Professor
Yamanaka. I think that they are signs of the recovery ofJapan as a whole from the shock of the earthquake.
On the other hand, the world had bad events
including spread of bird ﬂu (H7N9) in China, a terrorist
attack in Algeria which killed 10 Japanese nationals,
development of small nuclear warheads and a test
launch of a missile that can mount the warhead inNorth Korea, deterioration of the relationship between
Japan and China over the Senkaku Islands and Boston
Marathon bombing. It is diﬃcult to predict what will
happen these days.
While our Group has suﬀered a decrease in orders formain industrial products under the severe economic
conditions since the second half of 2011, our assetsbullion trading business is performing well thanks
to rising precious metal prices. Especially, the
RE:TANAKA program to buy back bullion andjewelry from customers is expected to grow to be
one of our Group s main businesses. In the jewelry
sector, we implemented various projects to entertain
our customers, such as sale of goods in collaboration
with Disney including oval coins made of pure gold tocommemorate the 110th anniversary of Walt Disney sbirth, as well as production, display and sale of alife-size golden replica of Barcelona footballer Lionel
Messi s left foot. We are also planning to establish
new partnerships with luxury brands and expand our
mail-order and on-line retailing business. We are thus
making eﬀorts to bring our customers a Precious
Moment of Happiness.
While the TANAKA Group has also continued to pay
attention to business continuity planning (BCP) since
the great earthquake, I think that we need to further
enhance our awareness of business continuity. As aneﬀort for business continuity, while our Group has
worked with focus on three key pillars of (1)Strengthening of employee training, (2) Strengthening ofAutomobile
Reciprocating engine, diesel,hybrid, FCV, EV...

* e-Challenge is an original initiative of the TANAKA Group in which all employees
register the subjects they will tackle in their duties and clarify the progress,
performance and evaluation. e stands for evolution, and it is named to encourage
employees to always make innovative challenges.

President
TANAKA Holdings Co., Ltd.

TANAKA CSR REPORT 201303

Tanaka Denshi Kogyo K.K.（TD）Business Locations of the TANAKA Group

Development and manufacturing of various bonding wires and supplyof technical support services to customers

Tanaka Holdings Co., Ltd.（THD）
Stock holding entity of Tanaka Kikinzoku Group
Headquarters ：❶ Marunouchi, Tokyo
Osaka second headquarters ：❷ Osaka

Headquarters ：❶ Marunouchi, Tokyo
Plant ：❷ Saga
❸ Shonan
Support Center ：❹ Taiwan Technical Center

TANAKA in the WorldThe TANAKA Group operates R&D, production and marketingbases for its three main businesses(industrial products, jewelry and assets) in Asian countries,

North America and Europe, in addition to Japan.

Tanaka Electronics Singapore Pte. Ltd.（TES）
Development and manufacturing of various bonding
wires and supply of technical support services to customers
Headquarters ：❺ Singapore

2

Asia

5
1

8

Tanaka Kikinzoku Kogyo K.K.（TKK）

5 6 1 2 34

3 9

Manufacturing, research and development of
all types of industrial precious metals products
and precious metals bullion

13

He a d q u art ers ：❶ Marunouchi, Tokyo
Distribution center ：⓭ Shonan Distribution Center

14

North
America
11 3

Tanaka Electronics Malaysia Sdn.Bhd.（TEM）

Europe1210Development and manufacturing of various bonding
wires and supply of technical support services to customers
Headquarters ：❻ Penang (Malaysia)

Tanaka Electronics (Hangzhou) Co., Ltd.（TEC）

7

Development and manufacturing of various bonding
wires and supply of technical support services to customers
4

Headquarters ：❼ Hangzhou (China)❷ Iwate Plant
Tanaka Electronics Taiwan Co., Ltd.（TET）

・Clad materials, etc.

Development and manufacturing of various bonding wires and supplyof technical support services to customers❸ Tomioka Plant
・Wire and plate materials ・Electrical rivet contacts
・Precious metal pipe processing
・Silver blazing alloys ・Gold and silver targets, etc.

❹ Ichikawa Plant❺ Sodegaura Plant
・Recovery and reﬁning of platinum precious metals❻ Isehara Plant
・Processing of platinum materials
・Platinum equipment for glass melting
・Materials for various sensors・Platinum targets, etc.

❼ Hiratsuka Plant
・Electrical crossbar contacts
・Materials for electronic parts ・Welded products, etc.

❽ Shonan Plant
・Recovery and reﬁning of gold and silver precious
metals, recovery equipment
・Gold and silver precious metal compounds
・Insoluble electrodes・Various plating processes
・Thick ﬁlm pastes

Taiwan Tanaka Kikinzoku Kogyo Co., Ltd.（T-TKK）

Export/import and sale of the productsof the Tanaka Kikinzoku Group

Various electrical contacts, wire rod processing,recovery and reﬁning

Headquarters ： 1 Marunouchi, Tokyo
Overseas base ： 2 Seoul Branch
3 Hong Kong Branch
4 Singapore Branch
5 Taipei Branch
6 Kaohsiung Sales Oﬃce
7 Manila Representative Oﬃce
8 Tanaka Kikinzoku International (Shanghai) Co., Ltd.
9 Tanaka Kikinzoku International (Shanghai) Shenzhen Branch
10 Tanaka Kikinzoku International (America) Inc.
11 Tanaka Kikinzoku International (America) San Jose Branch
12 Tanaka Kikinzoku International (Europe) GmbH
13 Tanaka Kikinzoku International (Thailand) Co., Ltd.
14 Tanaka Kikinzoku International (Malaysia) Sdn. Bhd.

Headquarters ： 1 Taipei (Taiwan)
Plant ： 2 Hsinchu (Taiwan)
3 Hukou (Taiwan)

Tanaka Kikinzoku Hanbai K.K.（TKH）

Electroplating Engineers of Japan, Limited（EEJA）

Manufacturing, sale, research and developmentof precious metal plating solutions and othersurface treatment agents, as well as plating,testing and other equipment
Headquarters ： 1 Marunouchi, TokyoOﬃce ： 2 Hiratsuka
Laboratory ： 3 California (U.S.A.)
4 Hsinchu (Taiwan)
5 Incheon (South Korea)

Tanaka Kikinzoku Jewelry K.K.（TKJ）
Sale of gold and platinum jewelry, import jewelry,bridal jewelry, precious metals art objects and various
commemorative gifts; remodel of jewelry sale andpurchase of gold and platinum bullion and coins; andRE:TANAKA (jewelry buyback and recycling business).

TC Catalyst, Inc.（TCC）

Store ：GINZA TANAKA❶ Ginza Main Store❷ Shinjuku Store❸ Store are Hotel Chinzanso Tokyo❹ Yokohama-Motomachi Store❺ Sendai Store❻ Nagoya Store❼ Sakae Store (Bridal)❽ Shinsaibashi Store❾ Fukuoka Tenjin Store❸ Mito Branch ❽ Osaka Branch❹ Yokohama Branch ❾ Okayama Branch❺ Nagano Branch ❿ Fukuoka Branch❻ Nagoya Branch ⓫ Shiga Sales Oﬃce

Tanaka Kikinzoku Business Service K.K.（TKBS）
Outsourcing and management of indirect
operations of the Tanaka Kikinzoku Group
Headquarters ：❶ Marunouchi, Tokyo⓫ Isehara Technical Center・Development and manufacturingof electrode catalysts for fuel cells

04 TANAKA CSR REPORT 2013

Various types of precious metal products❹ Gajwa (South Korea)❻ Shenzhen (China)

Nippon PGM Co., Ltd.（PGM）
Recovery of precious metals from used catalysts
for the puriﬁcation of automobile exhaust gas andused petrochemical catalysts
Head oﬃce ：❶ Akihabara, Tokyo
Plant ：❷ Kosaka, Akita ❸ New Jersey (U.S.A.) ❹ Liberec (Czech)Japan

OKI Tanaka Circuits K.K.（OTC）
Development, design, manufacturing and sale of printed
circuit boards, electronic devices and electronic parts
1

Head oﬃce/plant ：❶ Tsuruoka, Yamagata

1・Development of high-performance materials⓬ FC Catalyst Development Center(located in Tsukuba Facility of TKK)

❺ Dohwa (South Korea)❼ Tianjin (China)

・Chemical technology development
・Manufacturing of platinum targets

・Development of high-performance materials
that use precious metals(for medical, automobile and energy sectors)

Headquarters ：❶ Marunouchi, Tokyo
Laboratory ：❷ Tsukuba

Head oﬃce/plant ：❶ Juan (South Korea)
Oﬃce ：❷ Seoul (South Korea)
Plant ：❸ Namdong (South Korea)❾ Tsukuba Facility (Technical Center)❿ Hiratsuka Technical Center

Development, manufacturing and sale of catalyst
equipment for puriﬁcation of exhaust gas
from gasoline and diesel engines

Heesung Metal Ltd.（HEESUNG）

Sale of the productsof the Tanaka Kikinzoku Group in Japan
Headquarters ：❶ Marunouchi, Tokyo
Branch/oﬃce ：❷ Sendai Branch ❼ Kyoto Branch

Location ：❽ Zhongli (Taiwan)

Business Locations

・Recovery and reﬁning of platinum precious metals
・Platinum precious metal compounds
・Manufacturing of various catalysts, etc.

Tanaka Kikinzoku International K.K.（TKI）

CDGM Tanaka Environmental Catalyst Co., Ltd.（CGTEC）
2

Development, manufacturing and sale of catalyst equipment forthe puriﬁcation of exhaust gas from gasoline and diesel engines
Head oﬃce/plant ： 1 Chengdu (China)
TANAKA CSR REPORT 201305

Organizational Governance

CSR Management■Approach to CSR Management

Items added by TANAKA

Core Subjects

ConsumerissuesThe TANAKA Group is monitoring and improving its own activities with a proper organization
to implement sound business management. We are also committed to promotion of CSR activities basedon ISO 26000 in order to respond to global social demands.

Security

Human rights

Organizational
governanceLabor
practices̶ Organization ̶
Observe 2 to 7
from a holistic
perspective

Fair operating
practices

We promote CSR activities based on the governance system
to ensure sound business management and ISO 26000.

8
9
100

7 2
6 1 3
5 4
Community
involvement
anddevelopment

BCP／M

Environment

Risk
Management

Approach to CSR
As a leading precious metals company, the TANAKA Group will respond to the trust and expectations ofcustomers in a rapid manner, based on its new Corporate Philosophy. In addition, we will promote soundbusiness activities, and fulﬁll our social responsibility as a member of the local communities in which we
operate. We aim to establish presence not only in Japan but all over the world by contributing to therealization of a prosperous society and a beautiful future for the Earth supported by precious metals.
As a result of globalization, companies are required to reﬂect a wide range of social demands -- such ascompliance with law, protection of consumers, environmental conservation, improvement of the working
Organizational GovernanceCorporate Governanceenvironment, protection of human rights and contribution to the local community -- on their management
activities. Accordingly, companies now need to consider impact on their stakeholders more carefully andCorporate Governance Structure and Internal Control Systemenhance their commitment to CSR activities.

The TANAKA Group ensures eﬃcient and competitive corporate management through the establishmentof an optimal management structure and appropriate business operations. To facilitate execution, theGroup strives to enhance its management and oversight framework and practice highly sound andtransparent management.

The TANAKA Group launched CSR promotion activities based on ISO 26000, international guidelines onsocial responsibility, in ﬁscal 2012. We are promoting our commitment to the seven core subjects of ISO
26000 as they are the most important issues for measuring the impact of corporate activities on
stakeholders. In addition to the seven subjects, the TANAKA Group has adopted three original issues of

The TANAKA Group has created Corporate Governance and Internal Control Principles to ensure respect
for the rights and interests of customers, employees, shareholders and other stakeholders, as well as

security, BCP/M (business continuity planning/management) and risk management in order to further
enhance the eﬀorts.

business operations in a legitimate and reasonable manner and appropriate and transparent accounting,in the corporate management.
Based on these principles, an■Corporate Governance System

CSR Promotion Structure

TANAKA Holdings

The TANAKA Group does not have a committee in charge of promoting CSR activities but positions

internal control system has been
established and is operated toGeneral Shareholders Meeting
Appointment/
Dismissal

CSR & Communication Divisions HQ and CSR Promotion Department as the sections in charge of the
Appointment/
Dismissal

Appointment/
Dismissal

promotion in the business organization.

facilitate the achievement of the
TANAKA Group s management
goals. This system is designed toensure the Board of Directors,
Management Committee andthe Internal Audit Department
execute their respective duties.

Audit

Board of Directors
Group Management
Committee

Coordination

Tanaka Holdings Co., Ltd.

Board of Auditors
Coordination

Internal Auditing
Department

Coordination

Internal audit

Independent
Accounting
AuditorAccounting
auditGroup companies
Industrial companies/Cross-functional companies

Business Strategy
Divisions HQPresident
R&D / Marketing
Divisions HQ

CSR & Communication
Divisions HQCorporate Management &System Divisions HQPrecious Metals
Divisions HQ

CSR Promotion Department
Tanaka Group companies

Tanaka Kikinzoku
Business Service K.K.

SHE Promotion Oﬃce*

Tanaka Kikinzoku
International K.K.

Tanaka Kikinzoku
Hanbai K.K.

Tanaka Kikinzoku
Kogyo K.K.（TKK）

Tanaka Denshi
Kogyo K.K.（TD）Electroplating Engineersof Japan, Limited

Tanaka Kikinzoku
Jewelry K.K.

* SHE Promotion Oﬃce is an organization that promotes safety, health and environmental activities at each worksite.

Internal Auditing Department s Eﬀorts
The purpose of the Internal Auditing Department is to facilitate the eﬃcient achievement of management goals by
TANAKA Group companies. To fulﬁll this purpose, the department conducts audits from the viewpoints of legality
and reasonableness, employing an organizational structure which ensures a fair and independent approach. The
department creates an annual auditing plan from the standpoint of risk management and other factors. Based on
the plan, the department conducts audits, to conﬁrm that TANAKA Group companies are executing business in an
appropriate and eﬃcient manner. Audit reports are provided to internal organizations with recommendations andadvice on areas of improvements. The audit results, along with proposals on new measures, are also presented tothe president during regular meetings. Additionally, the department exchanges views with corporate auditors
twice a year to promote coordination with the Board of Auditors.

TANAKA NOWThis ﬁscal year, the TANAKA Group added the strengthening of CSR and BCP to
its policies. Accordingly, we changed the name of the responsible section from
Corporate Planning & Communication Divisions HQ to CSR & Communication
Divisions HQ. We will further enhance CSR activities and strengthen the
structure for corporate governance, which is one of the activities, while actively
working to prevent scandals and make social contribution as well.
Manager of CSR & Communication Divisions HQ

06 TANAKA CSR REPORT 2013

Osamu Ikeda
TANAKA CSR REPORT 201307

Human Rights

Labor Practices

We are providing education in aplanned and systematic manner todevelop an environment where diverse
human resources can work successfully.

In response to the expansion of ouroperations in foreign countries,
we will enhance our awareness ofrespect for human rights beyond
national boundaries.

The TANAKA Group is working to create workplaces where various
workers can demonstrate their abilities. In addition, we are cultivating
personnel in a planned and systematic manner in accordance with ourpolicies of using employee training to build self-awareness andself-reliance, linking education closely to business and spending
as much as 20% of work time on education.

All TANAKA Group employees not only in Japanbut also abroad are aware of respect for human rights
when performing business activities.

Respect for Human Rights

Employment and Human Resource Development

Basic Approach

Employment

The TANAKA Group is making eﬀorts to promote sound business activities and establish steadfast

On the belief that precious metals are the future, the TANAKA Group values diversity of the workforce.

credibility and trust as a leading precious metals company.

While sparing no eﬀort to recruit new university graduates, we are working to establish appealing work

Respect for human rights is an important subject in such eﬀorts. In addition to compliance with theenvironments for female employees and oﬀering job

relevant provisions of the Labor Standards Act, we declared in the code of conduct and standards ofopportunities for non-Japanese and for people with disabilities

Number of employees

3,509（3,731）

conduct we published in November 2008 that we will respect basic human rights and avoid any

based on their capabilities. We believe that harnessing theDomestic employees

2,733（2.987）

combined capabilities of a diverse and multi-faceted workforce

Overseas employees

discriminatory treatment in all business activities and that we will not allow child labor or forced labor.

is critical in our quest to survive international competition anddistributed them to staﬀ abroad to train them with the materials. Thus, an environment to respect

raise the global presence of TANAKA.

human rights has been created in overseas sites as well.

We consider that people represent both resources andMoreover, we designated Greetings, Smile, Thanks, Safety

Average age
Average male age

41.9 （37.1）

Average female age

38.8 （30.5）

Ratio of employeeswith disabilities

assets of a company.

776 （744）
41.0 （36.3）

Labor Practices

Human Rights

We also prepared the English and Chinese versions of the charter and rules in February 2009, and■TANAKA Group Employees as of March 31, 2013

（1.63％）
1.80％* The numbers in parentheses are data from the previous ﬁscal year.

and Challenge as Five Attributes of a TANAKA Employee inthe previous ﬁscal year, and adopted them as our action

Human Resource Development

guidelines. Based on them, we will unite the eﬀorts of all

The TANAKA Group recognizes education as one of its 10 management priorities, and deﬁnes its

employees and operate as a company that respects people

approach by such policies as using employee training to build self-awareness and self-reliance, linking

even more.

education closely to business and spending as much as 20% of work time on education. We provide
education with the aims of enabling diverse individuals to demonstrate their talents to the maximum andInternal Reporting System
The TANAKA Group adopts an internal reporting system toaddress human right issues such as power harassment andsexual harassment. When a report on human right issues isreceived, the Internal Reporting Committee sets up an
investigation team composed of members in an impartial
position. The team collects accurate information whilebearing in mind the position of the informant, and delivers
the ﬁndings to the Internal Reporting Committee, which

helping all employees pursue self-realization and improve their satisfaction while working to create an
active and vibrant working environment.

Informant
Reporting

Feedback of
the ﬁndingsInternal Reporting Committee
Appointment

Report of ﬁndings

With an educational system that ensures that all employees receive the knowledge they need throughregular training and guidance from the time they enter the company to the time they retire, we arecultivating human resources in a planned manner. We have a systematic program to provide training on
engineering and production skills and call it Manufacturing University.

Investigation team
Investigation

Relevant sections in the TANAKA Groupthen seeks a prompt and fair solution based on the report.

Basic Education for Newly Hired Employees at Manufacturing University【Subjects in the curriculum】
Basics of bullion, basics of safety, basics of the environment, knowledge on precious
metals, basics of quality control, basics of manufacturing, special license, reform of
consciousness, process management, plant tours at other companies (Toyota,
Denso, Fuji Heavy Industries, Nissan), basics of facility maintenance, TSP, practice of
mechanical processing, extracurricular lessons (walk rally, Zen sitting meditation,
sutra transcription)

TANAKA NOW
We are working to help TANAKA continue to be a company that respects people.
In pursuance of the TANAKA Group s policy of considering itself as an extended
family, we at the Human Resources & General Aﬀairs Department work to support
employees from a wide range of perspectives including the personnel system, welfare
and training. Valuing the idea of mutual trust that has been built up and inherited in
the Group, we are committed to promotion of group activities, activation of corporate
culture and improvement of communication abilities of employees. I have a renewed
sense of the importance of enhancing awareness of respect for people.
Chief Manager, Human Resources & General Aﬀairs Department, Corporate Management & System Divisions HQAkiko Ueda
08

TANAKA NOW
Considering the future of our global business, we receive trainees from India.
In anticipation of developing a business in India, a promising market, we
operate an internship program to train staﬀ from the country for two months
from May to July every year. In 2013, which was the third year for the
program, we received four interns and provided training at Saga Plant of
Tanaka Denshi, Tsukuba Facility and other sites. This program also gives us
good opportunities to directly experience globalization and learn theaspiration of overseas trainees.
TANAKA CSR REPORT 201309

Interdependent stage■Safety Awareness Stages
Your eﬀorts as a TANAKA person

Independent stage

Interdependentstage

I create my own safety

Collaborative support for safety

All employees collaborate
to further ensure the safetyof each other.
Safety activities involving all employees

Dependent stage
Top management takes initiative
Employees follow safety rules

Reactive stage
Leave safety to others
Top management unawareof safety

Reactive stage
2010

Independent stage
2013 and afterwards

Dependent stage
2011

Each of the employees practices safetymeasures without fail.

Top management sets an example to follow,
and employees comply with safety rules.
Top management setting an example

Safety managers manage safety, and employees follow the instructions and warnings.
Support by safety managers

Giving the highest priority to safety,
we are committed to development of a safety culture.
Based on the policy of placing safety, health, environmental conservation anddisaster prevention above any operations, we perform continuous health and safety activities
with focus on the development of a safety culture.

Reactive stage

Dependent stage

Independent stage

Interdependent stage

・Instinctive response
・Legal compliance・Leave to safety manager
・Insuﬃcient involvementof top management

・Top management leads by example
・Education and training
・Established rules and procedures・Force and discipline・Target setting led by superiors

・Independent actions and practices
・Individual values
・Individual declarations and standards
・Self-satisfaction
・Consideration of oneself

・Encouragement of colleagues
・Active information sharing
・Mutual promotion of awareness・Care towards others
・Consideration for colleagues
・Pride in the organization

Establishing a Safety Culture

Labor Practices

TANAKA creates a safety culture
through collaborative activities

Improvement of Safety Awareness through Traﬃc Accident Eradication Activities
With the aim of enhancing safety awareness to the

independentstage, we are committed toeradication of occupational accidents in our worksites. In particular, we attach great importance to a
traﬃc safety campaign because car driving is usually a one-person operation andawareness plays a major part in it. To raise theindependent

awareness, we develop such initiatives as thorough implementation of

independent■Sticker to prevent rear-end collisions

risk prediction and point and call and the placement of a sticker toprevent rear-end collisions. Thus, we are promoting traﬃc accident
eradication activities as well as the improvement of safety awareness.

Safety and Health■Action Policies■Fiscal 2012 Safety and Health Policy and Target

PolicyAssurance of safety and health, environmental
preservation and prevention of disasters take priority
over any other corporate activities.
We prioritize assurance of safety in local communities,
environmental preservation, safety of employees andmaintenance and improvement of employees health inour business operations.
All employees are responsible for maintaining
mechanical and environmental equipment in perfectconditions, and required to strictly prevent health andsafety, and environmental violations. In addition, they
have to always be careful to detect any unsafe actions
and conditions and correct them promptly in order toeliminate occupational accidents, environmental
pollution and impairments of health.

Priority measures

Labor Practices

Main Safety and Health Activities in Fiscal 2012

Top Safety Policy

Create a new safety culture and move up to a higher level

Driven by each worksite, safety and health measures such as detection of potential accidents and proper

Ⅰ Develop activities to eradicate unsafe conditions under the initiativeof frontline supervisors
Ⅱ Enhance skills to predict dangers to eliminate accidents and disasters
Ⅲ Use risk assessment to eradicate unsafe actions and conditions

and quick response to ﬁndings from safety inspection tours were taken. We also worked actively toprovide risk prediction training and conduct risk assessment to prevent disasters. Some of the successful
safety improvement initiatives in ﬁscal 2012 are presented below.

Activity guideline
Finish the dependent stage and start to prepare
for climbing up to the independent stage

Tomioka Plant

Ichikawa Plant

Action guideline

As the exhaust air duct was locatedtoo far from the places where oil
smoke was generated, the smoke
did not reach the duct but ﬁlled theworksite when an air conditioner
was used in summer. The duct wasrenovated.

A soundproof lid was attached
to reduce noise from a vibratory
grinder. As a result, the noiselevel was improved from Class 3
to Class 1.

highest priority to safety and health, environmental conservation and disaster prevention in all businessTomioka Plant

Hiratsuka Plant

activities, as stated in the Top Safety Policy.

An emergency stop button attachedbehind the machine, where thebutton was diﬃcult to ﬁnd andpress, was moved to a better
position.

When a forklift went out of theworksite, it was possible for apedestrian to walk to the front of
the machine. => Chains were
installed to prevent pedestrians
from crossing the dangerous zone.

Review employees awareness of safety

TargetReduce accidents, disasters and traﬃc accidents by 50% year-on-year

Basic Approach
The TANAKA Group promotes safety and health activities in line with the basic stance of giving theBased on the safety awareness stages approach, we are working to eliminate disasters and accidents byenhancing employees awareness of safety and developing a more sophisticated safety culture.

Eﬀorts in Accordance with the Safety Awareness Stages Approach

Repositioned

The safety and health activities of the TANAKA Group moved up from the Reactive stage, where measures
are left to a central organization and safety managers, to the dependent stage, where company leaders are

Safety Managers Sub-committee and Working Groups

setting an example for others to follow, in ﬁscal 2011. To climb up to the next independent stage, we

The Safety Managers Sub-committee discusses important issues and selects the subjects to be

implemented drastic structural change, including establishment of the SHE Promotion Oﬃce, which

addressed by its Working Groups. The subjects in ﬁscal 2012 included preparation of proposals for theprovides overarching management of safety, health and environmental activities, at each worksite.

safety education system (Safety Education Working Group), as well as selection of rules to be removed

In ﬁscal 2012, to further ensure that safety management activities are performed at each worksite, wefrom the existing ones and proposal of management methods (Rule Revision Working Group), which

improved the relevant rules and reviewed the organization for the activities. At the same time, newwere all handled from ﬁscal 2011.

initiatives for moving up to thestage, such as individual declarations of safety, were

The Safety Education Working Group proposed a design of the safety education system in a matrix oflaunched. We have also introduced a method to evaluate the safety culture of the whole Group on a trial

job positions (roles) versus job functions (skills) in order to implement exhaustive training programs andbasis so that we can identify vulnerable parts of the culture and overcome the weakness.

develop successors.

10 TANAKA CSR REPORT 2013independent

TANAKA CSR REPORT 201311

Business Activities and Environmental Impact

Environment

Environmental Impact
The TANAKA Group compiles data on the environmental impact caused by activities of each business unit in theform of input and output data. They include manufacturing, research, and technical development data on plant
activities, along with sales and management data associated with oﬃces and retail outlets. Production activities
account for a large part of the Group s business activities, and are the source of most of the environment impact.
■Fiscal 2012 Input and Output Data●

While continuously reducing environmental impact,
we are improving the quality and transparencyof environmental management.
Based on an environmental management system, we are committed to continuous reduction of environmental impact
on a Group-wide basis. We also endeavor to improve the quality and transparency of environmental managementby comprehensively identifying the environmental impact and adopting environmental eﬃciency indicators andenvironmental accounting.

INPUT

●

OUTPUT

Electricity

74,326 MWh

CO₂ emissions

34,878 tons

LPG

94 tonsNOx emissions

11 tons

City gas

2,967,000 m³

Eﬄuent (process wastewater)

228,000 m³

Heavy oil

107 klWaste discharge

11,708 tons

Water

357,000 m³

PRTR emission and transfer (total) 80 tons
Business activities

Environmental Eﬃciency
The TANAKA Group uses an environmental eﬃciency indicator in an eﬀort to reduce environmental impact
per added value and develop more productive business activities.

■CO₂ Indicator: Environmental Eﬃciency

Environmental eﬃciency is deﬁned as added value divided by CO₂

Environmental eﬃciency = added value / CO₂ emissions
Added value = production output - (materials cost +outsourced processing cost)emissions while added value is calculated by subtracting the sumof materials cost and outsourced processing cost from production
output. We employ CO₂ emissions as the representative indicatorof environmental impact because they are most closely related to

2.0

1.505

1.5

1.397

1.270

2008

2009

2010

1.401

1.0
0.5
0

the business activities of the TANAKA Group.

1.428

Environmental Management

2011

2012

FY

Environmental Management System

Environmental Accounting

The TANAKA Group promotes environmental conservation activities based on an environmental

The TANAKA Group has introduced environmental accounting,management system. Manufacturing and technology units, which play crucial roles in environmental

which relates environmental activities to ﬁnancial data, in orderconservation, as well as sales units, which play key roles in forming network with business partners,

to improve the quality of environmental management and thehave acquired ISO 14001 certiﬁcation, which is the international standard for environmental

transparency of business activities.

Business area costmanagement systems.

This report compiles data on the following types of cost:

Upstream/downstream cost

We are making continuous eﬀorts to address main environmental aspects including reduction of CO₂(1) Environmental conservation cost (2) Cost based on a unique

Administration cost

177.9 （419.2）

emissions and waste with medium-term quantitative targets on a Group-wide scale. Each worksite alsoclassiﬁcation to present the characteristics of our environmental

R&D cost

695.4（1,362.0） 138.0（71.2）

sets its own targets relevant to its facilities and duties.

activities

Ministry of the Environment

Environmental Compliancethus aim not simply to comply with the law but also to minimize environmental impact in our businessactivities. To respond without delay to abnormal situations and prevent their reoccurrence, we haveestablished a communication system to internally share information in a rapid manner and makenotiﬁcations to relevant government bodies in accordance with the reporting and notiﬁcation standards.

External

Internal
TANAKA Holdings Co., Ltd.

③Resource circulation cost

54.3（72.1）（0.2）

165.5 （185.1）
（0.0）

0.0

Social activity cost

0.0

（0.0）

Environmental
remediation cost

0.0

（0.0）

9.4 （0.0）

1,343.7（2361.8） 201.8（143.3）

CSR Promotion Department

・Government bodies
・Associations
・Industry groups, etc.

Main initiatives

Cost

Investment

Domestic wastewater recycling equipment, etc.

0.0

（0.9）

0.0

（0）

Air pollution prevention cost

Construction of new and additional exhaust gas scrubbing towers, measurement,chemicals, etc. for prevention of air pollution

9.5 （62.7）

0.0

（0）

Eﬄuent treatment cost

Upgrading of wastewater treatment equipment, water quality inspection, chemicals, etc.

327.6 （357.6）

63.8（72.1）

Waste treatment costIndustrial waste treatment

153.8 （166.7）

0.0

Recycling cost

Recycling process

13.0 （17.5）

0.0

（0）

Other global environmental
conservation cost

Noise soundproof walls of exhaust gas scrubbing towers, soil survey, etc.

（4.9）

0.0

（0）

143.8 （389.5）

0.0

（0）

Personnel cost, regular examination and annual registration fees to maintain ISO 14001
certiﬁcation, expenses to prepare a CSR report, etc.

R&D cost forenvironment-related businesses

・R&D of cadmium free materials
・R&D of electrode catalyst for fuel cells to be used in fuel cell cars andother equipment which uses the chemical reaction between hydrogen andoxygen to create power without generating hazardous exhaust gas
・R&D of catalyst to remove odors from organic matter and hazardous materials
・R&D of three-way catalyst for puriﬁcation of exhaust gas from cars

Environmental loss and compensation

No ﬁne paid

President

Instruction/Policy

Central Environmental Committee

0.4

（0）

695.8 （1,362） 138.0（71.2）

ー

（ー）

ー

（ー）

1,343.7 （2,361.8） 201.8（143.3）

Total

Unit: million yen * The numbers in parentheses are data from the previous ﬁscal year.

■Environmental conservation cost

Instruction

Worksites
Quick reporting

Reporting/
Notiﬁcation

Cost（million yen）

Investment（million yen）

2,500

250

2,000

200

1,500

150

1,000

100

500

50

0

12 TANAKA CSR REPORT 2013

0.1

Investment

Resource and energy saving cost

Environmental management activities■System to Respond to Emergency Situations

Abnormal situation②Global environmental
conservation cost

Total

Category
Environmental conservation
activities

particular, the internal standards for air and water pollutants are set at 50% of the legal standards. We

ReportCost
304.7 （395.3）■Environmental Conservation Cost (FY2012)

The TANAKA Group has set strict internal management standards for environmental protection. In

ReportCategory①Pollution prevention cost

Environment(3) Cost in line with the guidelines issued by the■Cost in Line with the Guidelines Issued
by the Ministry of the Environment (FY2012)2008 2009 2010 2011 2012 FY

0Environmental
conservation activities
Environmental
management activities
R&D cost forenvironment-related
businesses
2008 2009 2010 2011 2012 FY
TANAKA CSR REPORT 201313

Environment

On the basis of enhanced environmental awareness of
employees, we steadily take improvement measures toachieve the targets.
Based on enhanced environmental awareness of each employee, we work for the achievement of targets for reductionof CO₂ emissions, reduction of waste and other initiatives. We are making steady eﬀorts with improvement methods
suitable for respective worksites, which have been developed from various perspectives.

■Waste Discharge
and Reduction Rate

Waste Reduction
We are making waste reduction eﬀorts to meet the target

Discharge (ton/year)
20,000of reduction by 50% from the average of the 2006-2008

16,000 13,944

period by ﬁscal 2013.
46% reduction, in ﬁscal 2012.
In ﬁscal 2013, we will install large-scale equipment andReduction of CO₂ emissions
We are committed to reduction of emissions of carbon
dioxide (CO₂), which is the main culprit of global warming.
Our activities are aimed at reducing CO₂ emissions by 25%
from the average of the 2006-2008 period by ﬁscal 2013.
We successfully achieved reduction by 23%, which exceeded■CO₂ Emissions andReduction Rate

Results
Target (reduction rate)
Results (reduction rate)

Emissions (CO₂-ton/year)
60,000

Reduction rate (%)
30

50,000 45,174
43,358 44,276
39,77040,00030,00034,87810

20,000

the target of 20% reduction, in ﬁscal 2012.

20

10,000In ﬁscal 2013, we will further stimulate the activities involving
all employees in order to meet the target of 25% reduction.

00
2006-08 2009 2010 2011 2012 2013 FY
Average

15,871

Improvement Case 1

Improvement Case 2
CO₂ reduction by replacing exit lights with LED lights

Reduction of 260 tons

Reduction of 2.9 tons of CO₂/year (Shonan Plant)

pursue the target of reducing waste by 50%.

Type

Conventional exit light40
12,498
11,708

30
20

4,000

10

0

0
2006-08 2009 2010 2011 2012 2013 FY
Average

Environmental Incidents
In ﬁscal 2012, we had eight incidents, a decrease from 15
incidents in the previous ﬁscal year. When an environmental■Breakdown in FY2012

incident occurs, we take measures to address the sources

Complaint fromthe neighborhood: 1

and prevent recurrence.

Water
quality: 4

The countermeasures we have taken to combat the sources
include optimal operation management of scrubbers, as well

Noise: 1

Breakdown
and number ofenvironmental
incidents■Incidents Where Internal Limits are Exceeded(Internal limits are set at 50% of the legal standards)

LED exit light

FY
No. of incidents

2006

2007

2008

2009

2010

2011

2012

22

14

9

8

8

15

8

Aﬀair

Environmentof CO₂/year (Isehara Plant)

13,3488,000

as proper monitoring of rainwater drainage.

CO₂ reduction by turning oﬀ lights

Reduction rate (%)
50

12,000We reduced waste by 16%, which was below the target of

Initiatives to Reduce Environmental Impact

Results
Target (reduction rate)
Results (reduction rate)

Air quality: 2

Photo
A cord switch
is attached to 90% of
the lighting ﬁxtures

Average life

approx. 6,000 hours

approx. 60,000 hours

Other Initiatives

Development of Products for Environment

Improvement Case 3
CO₂ reduction by attaching heat

We are developing, manufacturing and selling electrode materials for fuel cells.

insulation material at the outletof an electric furnace to control
heat release
Reduction of 2.0 tonsof CO₂/year (Hiratsuka Plant)

Heat insulation material
Before attachment

After attachment

Other Improvement Cases

As a product that contributes not only to energy saving but also to energy production, we areworking to develop electrode materials for fuel cells. Completion of a dedicated plant in
Hiratsuka, Kanagawa is scheduled in ﬁscal 2013. Fuel cells derive electric energy from thereaction of hydrogen with the air. The TANAKA Group uses limited precious metals in the core of
the electrode materials, and engages in the development, manufacturing and sales of them.

The facilities that need to be continuously provided with electricity during a plant shutdown around the New Year holidays wereidentiﬁed to ensure shutdown of all other facilities and reduce CO₂ emissions (Hiratsuka Plant).
* Realizing that there are more facilities which can be stopped than those which cannot be stopped,
we were able to identify the former eﬃciently.

Recycling of Precious Metal Products - Production, Sale,(Use, Performance Degradation), Performance Recovery
We recover the performanceof used metal honeycomb catalyst
and reoﬀer it to customers.

TANAKA NOW
The TANAKA Group is making concerted eﬀorts to reduce CO₂ emissions.
The TANAKA Group aims to reduce CO₂ generation by 25% from the average of the
2006-2008 period by March 2014. To meet the target, all Group companies areworking together to save energy.
In Tanaka Kikinzoku Kogyo, which operates production units that consume anespecially large amount of energy, all plants promote energy saving activities in asystematic manner to meet the 25% reduction target. The cumulative eﬀorts ofindividual plants to reduce CO₂ emissions with involvement of all employees haveresulted in great achievement. As a manufacturer, we will continue to work to reduce
environmental impact actively.
Manager of PGM Business Department
Manager of Au-Ag Business Department

14

The TANAKA Group manufactures and sells
metal honeycomb catalyst used mainly for
deodorization, which helps conserve the air
environment and eliminate oﬀensive odors.
In addition, to reuse the limited precious
metal resources, we receive used catalyst
from customers and return it after
recovering the performance. We thus
contribute to eﬀective use of resources.

Delivery
Use
Manufacturing

Sale

Reuse
RecyclePerformancedegradation
Performancerecovery

Sadatoshi Sonoda
TANAKA CSR REPORT 201315

Fair Operating Practices
Non-use of Conﬂict Minerals

Procurement Policies on Precious Metals

The TANAKA Group has established Procurement Policies● We do not purchase or procure anyon Precious Metals to prevent trading of conﬂict minerals,

precious metals produced or reﬁned
in a country if the metals producedin the country are designatedas conﬂict minerals.
● We conduct no transactions withany companies that produce ordeal in conﬂict minerals.
● We do not support or have partnership,
contract or other relationship with anyorganization involving or related
to conﬂict minerals.

which are considered to be an international problem.
Conﬂict minerals are produced in countries where armed
groups are committing inhumane acts, and payment tosuch minerals is a funding source for the groups and cancause more conﬂicts. The Dodd-Frank Financial Reform Act
designates tin, tantalum, tungsten and gold mined in the
Democratic Republic of Congo (DRC) and its neighboring
countries as conﬂict minerals.

We operate a Group-wide system to ensure adherence
to corporate ethics in business management.
In addition to legal compliance, the TANAKA Group strives to ensure observance of corporate ethics
to conduct fair and sound business activities. Based on the understanding that compliance is partof risk management, we operate a Group-wide system to identify and address problems promptly.

Basic Principles on Handling ofAntisocial Forces in the TANAKA Group

Handling of Antisocial Forces
Elimination of antisocial forces from society is a crucial
challenge for securing social order and safety. The
TANAKA Group has included relevant rules in its Code of
Conduct and Standards of Conduct and also formulated
basic rules on handling of antisocial forces. Based on theserules, we take such countermeasures as appointment ofsections and persons in charge of handling antisocial
forces, review of contracts with business partners (additionof a clause to exclude criminal gangs) and cooperationand information sharing with competent authorities.

Basic Approach
The TANAKA Group will implement fair and sound business management based on corporate ethics as

Fair Operating Practices

Compliance① We will handle antisocial forces
systematically on a Group basis.
② We will cooperate with external
specialized agencies (police, theNational Center for the Eliminationof Boryokudan, lawyers, etc.).
③ We ban any relations, includingtransactions, with antisocial forces.
④ We will take decisive legal actions
including civil and criminal measuresin times of emergency.
⑤ We prohibit engagement in secrettransactions with and provision offunds to antisocial forces.

Protection of Intellectual Property Rights

well as legal compliance. In addition, we will respect culture and custom in each country/region in our

We believe that patents, utility models, trademarks, designs, copyrights and other intellectual property

business activities and contribute to sustainable development of a rich and safe society.

rights and knowhow represent valuable assets for the company. Based on this recognition, we actively
try to create intellectual property rights. In ﬁscal 2012, the TANAKA Group as a whole acquired 48

Promotion Structurepatents in total.

The TANAKA Group understands that promotion of compliance is part of risk management. Based on the

When researching new technology and developing, producing and/or selling products, we respect

information on compliance-related problems and relevant information from external sources gathered at

intellectual property rights of third parties and avoid intentional infringement. We also deal with

CSR & Communication Divisions HQ, necessary actions are taken on a Group-wide scale. Additionally, weinfringement by other companies in a strict manner in accordance with the law of the relevant countries.

establish committees in charge of speciﬁc priority issues on an as-needed basis, and also provide■Some of the Patents Acquired in FY2012

relevant education and training.

Publication Number■Compliance System

TANAKA Holdings Co., Ltd.
President

Title of the invention

4970851●

Colloidal gold and the production process

4976563●

Noble metal product purchasing system

4989771●

Regeneration method of catalyst for purifying exhaust gas
High purity copper ﬁne wire for connection with semiconductor equipment

5053456●

Reporting/
Proposal of improvement

5185035●

Pd-Cu alloy with excellent hydrogen permeability

Internal Reporting Committee

5140053●

Method for manufacturing a palladium nitrate solution

Mechanism to promptly detectand correct inappropriate actions, etc.

CSR & Communication
Divisions HQ
Legal Department

CSR Promotion
Department

Identiﬁed problems

Advice/Guidance

Daily management
Companies/Units(Manufacturing, engineering,sales, management)
Compliance with laws, codes, etc.
related to the operations

Development

Establishment of a mechanism
to enhance the system

Lawyers
Consultants
Government bodies
Other experts

TANAKA NOW
Accumulation of information from worksites leads to enhanced compliance.
Compliance represents activities to handle complaints from customers andinternal reports from employees with sincerity and minimize damage to thecompany. While compliance is often interpreted as compliance with thelaw in newspapers and magazines, I believe that protection of anorganization is the real intent of compliance. The most important policy inthe protection of an organization is to praise the subordinates who deliver
bad news and punish those who do not. To be the ﬁrst to collect crucial
information on what is happening in the worksite and respond to it is thecore of compliance, in my opinion.
Chief Manager, Legal Department, CSR & Communication Divisions HQ

16 TANAKA CSR REPORT 2013

Takatoshi Sugiyama
TANAKA CSR REPORT 201317

Consumer Issues

Strong Commitment to the Quality of Jewelry
To deliver jewelry with beauty and reliable quality, Ginza Tanaka conducts a strict inspection of
products three times: at shipment from the factory, acceptance and delivery to the retail store. In
the inspection, a wide range of quality issues, including appraisal, beauty grade, surface condition,
shape, size and wearing comfort of jewelry, along with thewidth, thickness and strength of the claw, are carefully checkedwith a 10-power loupe. The jewelry that has passed theexaminations has the inscription of the Star S logo.
Star S logo

Alwayskeeping promises with customers,
常にお客様との約束を守るとともに、
we also pursue responses that exceed their expectations.

期待を超える対応も追求

With the motto of responding promptly to the trust and expectations of customers,
wealways aim to bring exciting moments to them. While keeping
our promises with customers
お客様の信頼と期待にスピーディーに応えることを旨とし、常に感動を創出することを目指しています。
byoﬀeringreliablequality,
we
also
focus
on
makingresponses
that
exceed their expectations.
確かな品質の実現によってお客様との約束を守りながら、期待を超える対応にも注力しています。

A product with diamond of 0.2 karat or more is attached with a third-party certiﬁcate, and the harsher
one of the evaluations made by two appraising companies is adopted. We also follow the Kimberley
Process*1 and the System of Warranties*2, and deal in diamonds only from conﬂict-free areas.
* 1 Kimberley Process
Rough diamonds traded between Kimberley Process countries are delivered in sealed tamper-resistant containers.
Rough diamonds are attached with a certiﬁcate of origin (Kimberley Process certiﬁcate) to guarantee that they are supplied from conﬂict-free areas.

*2 System of Warranties
When diamonds and diamond jewelry are traded, they need to be attached with an invoice that declares that the diamonds were minedin conﬂict-free regions.

Technical Development
Through technical development, the TANAKA Group works to create new uses of precious metals andCustomer Engagement

improve manufacturing and usage eﬃciency, which will provide various values for customers and society.

Customer-oriented Basic Approach

A representative example is catalyst for fuel cells, which currently attract attention as a distributed

the Corporate Philosophy, and always aims to bring exciting moments to them. We are making every
eﬀort to build trust relationships through adherence to promises, respond in a way to exceed customers
expectations and continue to be their partner that oﬀers real value.

power source to be used in cars and houses. Tanaka Kikinzoku Kogyo employs the precious metal

Consumer Issues

The TANAKA Group sets the policy of responding promptly to the trust and expectations of customers incatalyst technology and electrochemical technology that it has cultivated for many years to develop
platinum-based catalyst as a material of electrodes for fuel cells. In the future R&D eﬀorts, the company
will seek the reduction of platinum used in catalyst for fuel cells by enhancing the resistance andeﬃciency of the catalyst. With a plant dedicated to development andmanufacturing of catalyst for fuel cells completed in the spring of 2013, we will

Supply of Reliable Quality
To keep promises with customers, the TANAKA Group endeavors to thoroughly ensure the quality andsafety of products and services. We have accumulated and improved reliable traditional techniques inour business activities for more than a century since our foundation, which enable us to oﬀer reliable
quality. In addition, we operate sales bases located all over Japan to establish a community-based sales
network and deliver our products to customers without delay, while providing products and services thatmeet global market demand in an accurate manner.

also strive to improve the production process for further cost reduction. Using
the platinum recycling technology as well, we will provide comprehensive
support to encourage widespread use of fuel cells.
Catalyst for fuel cells

Commendation from Customers
The TANAKA Group receives high evaluations,sometimes in the form of an award, from customers
for its eﬀorts to support their production activities

Response to U.S. Regulation on Conﬂict Minerals

behind the scenes. Encouraged by such evaluations,

The Dodd-Frank Financial Reform Act enacted in the United States in July 2010 requires U.S. listedcompanies to report whether or not they use conﬂict minerals (metals)*1 to U.S. Securities andExchange Commission (SEC).
In response, listed companies in the U.S. demand their supply chains to enhance traceability of raw
materials so that any conﬂict minerals used in them can be identiﬁed.

we will continue our commitment to customer
support activities.

Customer nameAward nameMinerals (gold, tin, tantalum and tungsten) used as funding sources for inhumane acts such as conﬂicts, human traﬃcking, slave/forced labor, child labor, abuse
and war crimes, as well as illegal acts such as terrorism and money laundering, in the Democratic Republic of Congo (DRC) and adjoining countries.
An electronic industry organization composed of electronic equipment manufacturers and major suppliers and the only agency that implements audits on
traceability of conﬂict minerals in the world.

18 TANAKA CSR REPORT 2013

Reason for the award

Hakodate NDK Co., Ltd.

Most Excellent Suppliers Award

Overall assessment

Seagate Technology International

Appreciation Award

Overall assessment

Nippon Electric Glass Co., Ltd.

Best Partner Award / Leading Partner Award

Commendation for proposal of VA

Panasonic Corporation AIS Company

Award for Excellence in Contribution
to Cost Reduction

Commendation for proposal of VA

ASEBest Supplier Awards

As the best supplier in 2012

CarsemLetter of Appreciation

Evaluation score A for the two terms of January
to June 2012 and July to December 2012UTAC

Best Site Awards

As the best supplier in 2012

On Semiconductor Group

Perfect Quality Platinum Award

Excellence in quality, services, technology, delivery andcost from 2009 to 2012

ASE
（Weihai), Inc.

ASE Group Best Supplier

Excellent supplier in 2012

*1 Conﬂict minerals (metals)*2 EICC (Electronic Industry Citizenship Coalition)Award for Excellencein Contribution
to Cost Reduction■Major Awards from Customers (FY2012)*2

Tanaka Kikinzoku Kogyo obtained EICC Conﬂict Free Smelters (CFS) program certiﬁcation, which
certiﬁes that the company
Companies listed on U.S. stock markets
The Dodd-Frankthat use any of the four designated minerals
uses no conﬂict minerals in
Financial Reform Act
Investigate and disclose the use
Section 1502
Requirement
the gold bullion or gold
after 2012
Requirement
materials it procures, reﬁnes
EICC(Electronic Industry Citizenship Coalition)
SEC
and/or delivers, on June 12,(U.S. Securities and Exchange Commission)
Formulate policies on handling the minerals
2012.
Establish rules for companies
Intel, Dell, SonyBest Partner Award (left)
Leading Partner Award (right)

TANAKA CSR REPORT 201319

Community Engagement

Cultivation of Human Resources and Development of Art and Culture● Co-sponsorship of Robot Contest for technical college students

The TANAKA Group has co-sponsored Robot Contest(ROBOCON) for technical college students since 2013.
Sending a cheering message Shine your ideas and advanceto the future! we support the young students who will play
pivotal roles in Japan s manufacturing in the future.
ROBOCON for technical college students● Grant program for research on precious metals

We engage in active communication, as well as programs
to foster relationship of trust.

As part of our eﬀorts to create a new world developed with precious metals, this grant program has

Setting the great goal of Contribute to the creation of a prosperous society, as well as to the future of the planet
through sustainable use of precious metals. we work to promote internal and external communicationin an active manner and perform a wide range of activities to strengthen the bond of trust.

applicants from all ﬁelds under the theme of research and development for the practical use of new

been conducted every year since ﬁscal 1999 to support domestic organizations that undertake R&D
activities using precious metals. In ﬁscal 2012, which was the 14th year for the program, we invitedtechnologies and products to which precious metals can contribute,and provided grant for 35

research projects.

Conservation of the Local Environment● Cleanup of the neighborhood

Tanaka Denshi Kogyo participated in a cleaning program
Community Engagement

organized by the local community, and employees cleaned up theSocial Contribution Activities

area around the city hall together with local junior high school

Basic Approachstudents. A total of about 200 people joined the program.

To achieve the goal of helping create a prosperous and comfortable society, the TANAKA Group is

Cleanup of the neighborhood

committed to contribution to community development through various community engagement● Cleanup of Mt. Fuji

activities that leverage the strength of each Group company, ranging from communication with local

We held the third Mt. Fuji volunteer cleanup program, which

communities, to support of art and cultural activities, assistance of disaster-aﬀected areas andreceived the participation of employees of the Headquarters andprotection of the global environment.

other worksites in the Kanto Region. The participants collected
940kg of garbage (630kg in the previous year). We cooperate with

Support of Sports Promotion

an NPO that supports activities to protect natural environment, and● Oﬃcial partner of the Japan Sports Association for the Disabledalong with the volunteer cleanup program, we donate part of the

For one year from March 1, 2012, we co-sponsored the Japan

proﬁts from RE:TANAKA, which is our metal recycling businessSports Association for the Disabled to support the Japanesethat helps reduce impact on the global environment.

Cleanup of Mt. Fuji

athlete team for London 2012 Paralympic Games. From March 1,

Donation and Fund-raising Activities

2013, we provide ﬁnancial aid to support the Japanese athletes
who will compete in Sochi 2014 Winter Paralympic Games.

● Assistance for reconstruction of the Tohoku Region

In the third Tohoku Reconstruction Volunteer Program, wecollected picture books from TANAKA Group employees anddonated roughly 1,700 books to elementary schools andkindergartens in Iwaki City, Fukushima.
The TANAKA Group supports
the Japanese delegate to London 2012
Paralympic GamesThe TANAKA Group supports
the Japanese delegate to Sochi 2014
Winter Paralympic GamesAt the same time, we conducted a fund-raising campaign andCommendation ceremony
at a Japan Para Championship● Support of a civic marathon event

Donation of picture books

TANAKA NOWFor Tokyo Marathon 2013, which was held on Sunday,

Through social contribution activities,
I expanded my circle of communication.

February 24, 2013, we produced the gold, silver and bronze
medals awarded to the top three runners, in addition tocommendation medals provided for ﬁnishers. Through the
production of these medals to praise the runners, we gavestrong support to Tokyo Marathon 2013.
Gold, silver and bronze medals
for Tokyo Marathon 201320 TANAKA CSR REPORT 2013

made monetary donation to Ashinaga, a charitable foundation.

As I thought I would be happy if my son s picture books stored in the closet could
help people in the aﬀected area, I participated in the program willingly. Many
workers were able to participate in this year s program while working at oﬃce asusual, and the activities also involved their family members and friends. I was
moved because many books were collected and a lot of kindness was shown.
Shonan Plant (Product Recovery S)

Haruko Sasaki
TANAKA CSR REPORT 201321

Security, BCP/M, Risk Management

With a multi-faceted approach, we
prepare for risks to ensure business
continuity at the time of emergency.
The TANAKA Group is committed to ensuring business continuity
to fulﬁll its responsibility for stable supply of products even at
the time of disasters and other emergency situations. For the eﬀorts,
we adopt a multi-faceted approach involving various initiatives
ranging from anti-earthquake measures, to distributed locationof production bases, securing of an alternative for headquartersfunctions and transfer of authority to make payment.
Tokyo Headquarters

Osaka Headquarters

Financial Data
Financial Results of the TANAKA Group■Financial results overview
Net sales

Net sales

FY2011FY2012

1,064,081

839,264

Year-on-year change

12,00078.9％

10,000

Income before
income taxes

12,69617,141135.0％Net income

6,046

10,338171.0％

Total assets

291,608

401,485

137.7％

51.5％

40.8％

ー

Capital adequacy ratio

100 million yen

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

million yen

Net income
100 million yen

Responsibility for Stable Supply of Products

8060

product inventory and worldwide deployment of production bases. After the Great East Japan40

Earthquake in 2011, we further enhanced our commitment to business continuity planning (BCP).

20
0

Establishment of a Second Headquarters
To resume signiﬁcant operations immediately after being hit by adisaster and maintain them over a long period, it is necessary to have a■System to maintain core
corporate functions with
two headquarters

second headquarters. TANAKA Holdings, which supervises andSecurity, BCP/M,
Risk Management

Headquarters in April 2012 so that either of the two headquarters canstruck by a devastating disaster, we could maintain core corporate

FY2005 2006 2007 2008 2009 2010 2011 2012

FY

About this Report

Team A
Two teams at Tokyo Headquarters
travel to Osaka in turns to stayfor three months each time.

Editorial Policy
The TANAKA Group CSR Report is published in order to enhance communication with stakeholders by informing them

control the whole Group based on a shared information system. As aresult, even if the Tokyo Metropolitan Area or the Kansai Region were2005 2006 2007 2008 2009 2010 2011 2012

Financial Data/About this Reportmanages the whole Group, started full-scale operation of Osaka Second

4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

100

signiﬁcant responsibility for stable supply, we have traditionally taken such measures as securing of

FY

100 million yen

120

The TANAKA Group supplies products to a wide range of industrial areas on a global scale. To fulﬁll our2005 2006 2007 2008 2009 2010 2011 2012

Total assets

Tokyo
Headquarters
Osaka
Headquarters

The TANAKA Group started to issue Environmental Report in 2004, and changed the title to CSR Report in 2007. In
commemoration of the 10th issue, this year s report renewed its design. A photo of endangered species, which wasfunctions such as reception of orders from customers, arrangement forused on the front page until the previous issue, was replaced with an image of gift, which is the design concept for

production process and delivery from plants to customers. Staﬀ
members of Tokyo Headquarters work at Osaka Headquarters in turns
to ensure smooth response to emergency situations.

of the Group s corporate social responsibility (CSR) initiatives.

Team B
Prepared to be able to conduct core
corporate functions such as managementof the whole Group at any time.

Promotion of Decentralization of Production Sites
The TANAKA Group is promoting decentralization of production sites to enable alternative production incase that any of the sites is aﬀected by a disaster. While we manufacture copper bonding wire, which isthe entire report. We consider that the Group s CSR activities, which aim to contribute to the creation of a prosperous
society supported by precious metals and the future of the beautiful earth, are a gift for the next generation.
We would be honored to receive feedback from our stakeholders. Your comments and opinions will be used to
improve the TANAKA Group s future initiatives.

PeriodApril 1, 2012 to March 31, 2013
In order to provide a general view of activities under each topic covered in the report, someused in various electronic parts, the production was also initiated in Taiwan in February 2012 in addition tocontents may represent activities taken outside this period.

the Japanese, Singaporean and Chinese sites that had already produced the wire. Our new plant in
Sodegaura, Chiba began operation for the business to recover and reﬁne platinum group metals contained

Scope

in used exhaust gas catalyst for automobiles in 2012 so that we operate the business in two domestic sites.

Transfer of Authority to Make Payment
Procurement of precious metals is indispensable for the continuity of our business, and we always haveto be able to make payment for the procurement. The TANAKA Group has established a mechanism totransfer the payment authority to Osaka Headquarters if Tokyo Headquarters is aﬀected by a disaster

Tanaka Holdings Co., Ltd. and consolidated subsidiaries (excluding overseas sites).
Indications are made in areas of the report where the scope is diﬀerent.

Publication

July 2013

Reference guidelines Japan Standards Association, ISO 26000: 2010
Websiteand to overseas bases if the ﬁnancial institutes in Japan stop their operation.

This report and past issues are also available on our website:
http://www.tanaka.co.jp/english/csr/index.html

Security
As part of corporate social responsibility, companies have to meet the trust of stakeholders and provide
them with a sense of security. This also plays a crucial part in business continuity of companies. The
TANAKA Group has the policy that companies have to take care of themselves to ensure such trustand security. In accordance with the policy, Tanaka Kikinzoku Kogyo, which is in charge of the Group s
industrial product business, added 19 dedicated security staﬀ in April 2013 to currently deploy forty

Publisher
Tanaka Holdings Co., Ltd.
CSR Promotion Department, CSR & Communication Divisions HQTokyo Building 22F, 7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-6422, Japan
Tel: +81-3-6311-5506 (direct), Fax: +81-3-6311-5508, website: http://www.tanaka.co.jp/english/index.html

employees in total to ensure the security of its plants and oﬃces all over Japan.
22 TANAKA CSR REPORT 2013

TANAKA CSR REPORT 201323

Third-party Opinion
Response of the TANAKA Group

Masamichi Shimizu, Professor at College of Business Administration, Shukutoku University

The TANAKA Group has published its CSR report in line

as improved readability, which convinces us that ourwith the environmental guidelines issued by theintention will be communicated to all stakeholders.

Ministry of the Environment every year since 2004.

While we recognize this report as a crucial communication

With endangered species featured on the front page,

tool to further improve the transparency of businessthe report emphasized the Group s commitment toactivities and maintain communication with stakeholders,environmental activities. In recent year, however, thewe have reinforced the idea with his comments.

circumstances surrounding companies have changed

We also improved questions in the questionnaire survey

dramatically, and companies are now required tofor the CSR Report 2013 in a desire to identify what

3,500 persons in the three key regions of Europe, America and Asia. Using the accumulated technologies, the Group

implement wide-ranging activities to fulﬁll their social

information stakeholders want to learn more accurately.

has recently entered advanced technology ﬁelds such as environmental puriﬁcation, clean energy and recycling andresponsibility, along with environmental activities.

Lastly, Professor Shimizu also gave us a valuable

nano/biotechnology. It is now facing the most epoch-making era in its history of more than 120 years.

Against such a backdrop, our CSR report wassuggestion under the heading

In such circumstance, this CSR Report, the 10th issue, renewed its image and considerably improved its readability.

restructured in the previous ﬁscal year to focus on 10

Challenges I Want to Ask

Three points particularly drew my attention.

issues including the seven core subjects set by ISO

issues to be covered to further enrich the report. His

26000, which is the main guidance for the Group s

feedback, as well as the results of the questionnaire

CSR activities, in addition to three issues emphasized

survey, will be reﬂected on the CSR activities of theon a Group-wide scale (security, BCP/M and risk

TANAKA Group and the CSR Report in the next ﬁscal

management). In commemoration of the 10th issue, weyear and beyond.

【Proﬁle】 Professor Shimizu graduated from College of Economics, Yokohama National University. After working at Fukoku Mutual Life Insurance
Company and Japan Management Association, he has been at the current position since 2002. Having served as a commission member for METI,
MOE and other agencies, Prof. Shimizu is currently the Board Chairperson of the Japan Society for Corporate Communication Studies and also a Board
Member of the Public Relations Society of Japan. His publications include Environmental Communication, Company Friendly to People - Security and
Safety, Management Based on Ties, Introduction to Public Relations, Theory and Practice of CC Strategies - Environment, CSR and Coexistence,
Door to Environmental Management Study, Introduction to CSR Management for Company Workers, CSR Initiative and CSR Management.

The TANAKA Group is a leading company in the manufacturing and sale of various precious metal products forindustrial uses with Tanaka Kikinzoku Kogyo as the core company. It operates worldwide and employs approximately

Distinctive Points of the 2103 Report
Firstly, the report shows the dynamics of the corporate
activities more lively as well as improved readability.

activities in a comprehensible manner must pave theroyal road for the TANAKA Group to establish its
credibility by raising the trust and expectations.

completely changed the design of the report.

The photos of employees next to headings in various

Achievements and Challenges I Want to Ask

As we prepared the CSR Report 2013 with updated

employees, remind me that human resources are

When I visited a plant of the Group, I witnessed thedesign with a hope that people further enhance theirsources of value just like products, and play major

extraordinary eﬀorts of employees to maintain theunderstanding of the Group s initiatives, I am glad withroles in meeting the trust and expectations of society.

quality

However,

Professor Shimizu s comment that the report shows theSecondly, eﬀorts to meet the global standards

presentation of such eﬀorts in this report seems to be

dynamics of the corporate activities more lively as wellare expressed. The report mentions appointment

not enough. Why? It is because the initiatives andas a certiﬁed referee on precious metals in page

relevant data are not explained suﬃciently.

1 and acquisition of an international standard on

For example, the section on human rights and labor

environmental management system by Group worksites

practices (pages 8 to 11) gives no answer to suchin page 12 in a discreet manner while explaining

questions as how the ratio of employees within page 17 that the Group will not use conﬂict

disabilities was achieved, what skills were available asminerals in accordance with its policy on internationala result of the development of diverse humanprocurement of precious metals.

resources, how many times the internal reporting

Thirdly, the message from the President mentions thesystem was used, what subjects are speciﬁcallystrategy on the selection and concentration of Group

included in the curriculum of Manufacturing University

Residents in the neighborhood of a TANAKA Group worksite

activities to cover six business areas including new

for the training of new employees and what method isStudents

energy and life science. In addition, promotion of CSR

used to evaluate the safety culture.

CSR/Environmental staﬀ in a company

activities based on ISO 26000 is sought in theWith respect to environmental activities, while theNews media

0

management organization. These initiatives give anreport indicates that strict internal standards, which

Government oﬃcials

1

impression that the Group is being prepared to pursue

are set at 50% of the legal standards, are adopted,

Research/educational institutes

0

responsible competitiveness, which is a global trend.

what standard is applied to emissions into natural

Environmental organizations

2

rivers, for example? As to the input data on

Group employees (including part-time workers, contract
1,392
workers and retired employees) and family members

andreputationofproducts.

Responsible Business Management andImprovement of Competitivenessenvironmental impact in ﬁscal 2012, what eﬀorts were

It is not easy to achieve a high level of competitivenesselectricity, city gas, heavy oil and water supply? How

while promoting CSR-based business management.

did the result of CO₂ emissions reduction in ﬁscal

To address CSR in business management, it will be2012 surpass the target? Are the PRTR-designatednecessary in the ﬁrst place that all of the executives andsubstances used in the plants not a source of any

employees share principles, technologies (methods)

environmental incidents (page 15)? While the waste

and actions and express the achievements in an

reduction target has not been satisﬁed for two

objective

consecutive years, is it because the target wasvividmannerwhile

repeatingmade in the worksites to reduce the consumption of

Deputy General Manager,
CSR & Communication Divisions HQ

Hideaki Sato

Questionnaire Results■From what status did you read this CSR Report?

■How readable was the report?
17

Clients/business partners

80

Diﬃcult to understand: 9

11

Easy to understand: 1,114

18

Others

1,449

Total

■How rich was the content?
Insuﬃcient: 4■Which article especially attracted your interest (multiple answers allowed)?
Very rich: 156

Third-party opinion: 91
Organizations for safety,
health and environmental
management activities: 83

A little insuﬃcient: 80

Social contribution: 772

inappropriate,

this report can be a crucial tool for challengeshipinappropriate?

(page1), it requires eﬀorts to enhance the transparency

I have many other questions, like how environmentalof the activities based on more accurate understanding

accounting data, which are published in the report

Commitment to BCP:
205of the business.

every year, are used for corporate management. If

Compliance: 114

The gap between the appearance and reality ofanswers to these questions are given, the CSR Reportcompanies is widening as the information/materialof the TANAKA Group will take a step further to be a

Commitment to reductionof environmental impact: 445

revolution proceeds while this is also applicable totool that conveys the reality of an excellent company

Environmental accounting: 74

other industrial sectors. Under such a situation,

where people shine brightly.

becausetheapproach

Very easy to understand: 153

A little diﬃcult
to understand: 135

communication with important stakeholders. Whileor

Third-party Opinion
Questionnaire Results

pages, along with the comments of executives andbut

Achievements andthat there are still manywas

Message from the President: 265
Worksites and business areasof the TANAKA Group: 279
CSR management: 81

Customer engagement:
171

Rich: 1,170

Corporate Philosophy and
Code of Conduct: 201

Corporate governance andinternal control system: 47
Commitment to healthand safety: 364
Employment and humanresource development: 289
Environmental compliance:
152

Environmental impact (input/output),environmental management indicator: 106

presentation of the whole picture of business and social

24 TANAKA CSR REPORT 2013

TANAKA CSR REPORT 201325