CSR Report
Digest Edition

2015

CONTENTS
2

Contents / Editorial Policy

4

Message from the President

6

Business Overview

Editorial Policy

The Yamaha Group issues the CSR Report tocommunicate its CSR vision and initiatives to its

8 Activity Highlight 1

Creating the Core of Corporate Management— Establishing the Yamaha Philosophy —broad-ranging stakeholder base. To enhancetransparency and make the report as easy tounderstand as possible, in 2014 we reorganized itin line with the structure and core themes of ISO
26000 “Guidance on social responsibility.”
In preparing the report, we referenced ISO 26000
and the Japanese Ministry of the Environment's“Environmental Reporting Guidance (2012 Edition).”We also initiated a review of items for disclosure in
response to the publication of Global Reporting
Initiative’s “Sustainability Reporting

12 Activity Highlight 2

Guidelines (v. 4.0).”

Popularizing Music in China
Organizations Included in the Scope ofReporting
In principle, the Yamaha CSR Report is forcompanies of the Yamaha Group (Yamaha
Corporation and its 69 consolidated subsidiaries inJapan and overseas). Certain sections of the report,

16

Activity Highlight 3

however, such as those containing detailed

Developing Environment-friendly Products

numerical data, have specific targets.

— Soprano Recorders Made of
Plant-based Resin —Reporting Period
April 1, 2014 to March 31, 2015
Notes: • The above period is referred to as fiscal 2014 in this report.
• Certain initiatives underway prior to March 2014 andinformation from April 2015 onward are also included inthis report.

Publication Timeline
Date Issued: August 28, 2015
Annual Activities Report

20

Organizational Governance24

Human Rights and Labour Practices

26

The Environment

28

Fair Operating Practices

30

Consumer Issues

32

Community Involvement and Development

34

Third-party Opinion

35

Response to Third-party Opinion / External Evaluation

Previous Issue: August 27, 2014
Next Scheduled Issue: August 2016

For information regarding the CSR
ReportGeneral Administration Department, General
Administration Division, Yamaha Corporation
INTL: +81-53-460-2071

CSR Report (digest edition)

Regarding Report Media
Since publishing the first report, we havegiven priority to information that, based on
ongoing dialogue with stakeholders, is of thegreatest interest to them. Starting in 2009, we
have taken a two-pronged approach, postingdetailed information and a variety of data on

CSR REPORTthe Yamaha website (full report) andDigest Edition

2015

This report outlines the Yamaha Group’s
approach to CSR and CSR activities
considered top priority. The 2015 edition
comprehensively reports our CSR activities,
highlighting those in which we have madenotable progress over the last fiscal year.

presenting key points more concisely in a
printed report (digest edition) to makecontent easier to read and understand.
LargerSocietal Expectations

Booklet Report

CSR Report (full report, update scheduled for September 2015)

http://yamaha.com/about_yamaha/csr/
The Yamaha website features the full CSR
Report, which presents a wide range of
topics in detail, as well as the content of thebooklet. By presenting the latest CSR topics
on our website we are able keep
stakeholders up to date on issues in which
they are most interested.

Website Report

Yamaha Group Responsibilities

LargerEnvironmental performance data can beseen at:http://yamaha.com/about_yamaha/csr/environ
mental_data/

Corporate Data (As of end of March 2015)
Company name:Yamaha Corporation

Paid-in capital:

Headquarters:

10-1, Nakazawa-cho, Naka-ku,
Hamamatsu Shizuoka, Japan

Number of employees: Consolidated: 19,967 (additionally an average of 7,860
temporary employees)
Non-consolidated: 2,617 (additionally an average of
234 temporary employees)

Year of establishment: 1887
Date of incorporation: October 12, 1897
Representative:
President and Representative Director

Yamaha Group:¥28,534 million

Subsidiaries: 75 (including 69 consolidated companies)
Affiliated companies: 6

CSR Report 20153

Message from the President

Aiming to Be a Trusted Enterprise Necessary for Society
by Being Conscious of Social Issues and Creating New Valuedevelopment of society by creating excitement and cultural
inspiration together with people around the world.

CSR Initiatives of the Yamaha GroupGrowing and Developing toward the Next Era

Since its founding in 1887, the Yamaha Group, through its
business activities that have sound and music at their origin, has
had a continuing commitment to creating excitement andcultural inspiration together with people around the world.
Today, when business and other activities are becoming evenmore global and social conditions are changing ever more
dramatically, the Yamaha Group, as a leading enterprise in themarket for sound and music, must have a shared set of values for
the Group as a whole to continue to offer new value to its
customers around the world and to society. For this reason, lastyear we reformulated and clarified our former Corporate
Philosophy and positioned it as our Yamaha Philosophy. In
preparing the Yamaha Philosophy, we newly added the “Way”
that provides guidelines for behavior that would give all Group
employees a renewed awareness of Yamaha’s traditions and its
spirit of taking up new challenges, and, thereby, give the Groupnew vibrancy and strength. Following the “Way,” each and every
one in the Group, including management, should first have abase of integrity in conducting business. With high aspirations
and a spirit of challenging the new, we should view the “Way” as are-embodiment of the Yamaha’s CSR spirit, which, in essence, isto satisfy our customers and contribute to society and culture.
With the Yamaha Philosophy as the base and, as we work forharmony with society and the environment, the Yamaha Group
as a whole should seek to contribute to the sustained

4

Yamaha Corporation

Going beyond legal requirements, the Yamaha Group takes
initiatives of its own volition to protect the natural environment,
as an integral part of our responsibilities as a manufacturing
company. We also contribute to cultural development throughthe promotion of music, and engage in other activities as acorporate citizen rooted in the area that contributes to creating asustainable society. In 2010, we prepared our CSR Policy, which
outlines our CSR activities in written form. The following year,
Yamaha signed the United Nations Global Compact, indicating
its agreement and support for the 10 principles of the compact,which include the protection of human rights, elimination of
improper labor practices, protection of the natural environment,
and prevention of corruption. In fiscal 2013, we confirmed thestatus of our CSR activities in relation to the seven core subjects in
the ISO 26000 Guidance on Social Responsibility and identified
the CSR issues to be addressed. In fiscal 2014, we clarified thedivisions responsible for addressing each issue. We also improved
the framework for centralizing activities to reach the goals andmonitor progress toward addressing CSR issues other thanenvironment, for which we had not disclosed our targets orprogress previously. Going forward, we will coordinate thisframework with our medium-term management plans and takeit as a guide to specific measures to strengthen the managementbase from a Groupwide perspective.

Yamaha Group Issues and Initiatives
The Yamaha Group as a whole, as a manufacturing company,
implements environmental measures for preventing pollution
around its manufacturing bases, and addresses environmental
issues on a global scale, including implementing measures todeal with global warming and preserve biodiversity. Last year, weinstalled a new effluent treatment facility at our wind instrument
factory in Indonesia that makes it possible to recycle and reuse
more than 60% of the effluent water discharged. In addition, our“Yamaha Forest” activities, also in Indonesia, which aim tocontribute to society, are continuing and have marked their 10thconsecutive year. To date, these activities have resulted in theplanting of more than 160,000 seedlings on an accumulatedbasis over an area spanning about 177 hectares. The trees weplanted early on have steadily grown to become a forest.
One of the important issues we face is maintaining responsible
procurement policies as our supply chain has broadened,particularly providing for sustainable wood procurement. In fiscal

2014, we prepared the Yamaha Supplier CSR Code of Conduct,
which aims to prevent human rights abuses and environmental
pollution in the supply chain and promote sustainable woodprocurement. Additionally, we established a policy for conflictminerals. We have begun to take steps to implement thesepolicies with the cooperation of our business partners.
Among activities to promote diversity and a proper work-lifebalance, at our manufacturing companies overseas, we are taking
measures to provide for passing on skills and nurturingpersonnel who will become production managers. At our sales
companies, we are appointing highly capable local staff topositions of more responsibility to accurately identify market
needs and promote sales activities. We are also implementing
measures to increase the percentage of women in managerial
positions and encourage all personnel to shift their work styles tobecome more conscious of time. We believe that employees
need to fulfill not only their work responsibilities but also giveproper care to their lives outside of work to enable them todevelop their aesthetic sensitivities. We think this is indispensablefor Yamaha, as a company that creates products and services thatgive people “profound excitement.”
To deal with business risks in our activities, with our Risk
Management Committee taking the initiative, we are continuing
to implement measures to strengthen our business continuity
plan (BCP) and provide for proper information security andinternal control systems. In parallel with this, we are also working
to improve our frameworks as well as our training and education
programs for ensuring fairness in business practices.

How Can We Continue to Be Needed by Society?

This year will be the last under our Medium-Term Management
Plan, “YMP2016.” It will be a time for completing our initiatives
over the last three years and formulating a strategy for the
coming three years. To continue to be an enterprise that isneeded by society, I believe it will be essential for us to work tooffer value that always exceeds our customers’ expectations. In
addition, we must look not only at customer needs but also
expand the scope to include the issues confronting society as awhole, as we aim to be a trusted enterprise that is necessary forsociety by being conscious of various needs and social issues andcreating new value. To do this, we must not be bound by thecurrent organization or methodologies but should actively takeup the challenges of going beyond the limits, as mentioned in
the Yamaha “Way,” and work to create value for society.
Music has a power that goes beyond words to bring people
together and share the same inspiration. I feel confident that
activities and innovative ideas that bring music to more andmore people and further its development will contribute greatly
to making sustainable society a reality. As the Yamaha Group
continues to grow and develop, we will aim to be an enterpriseand corporate brand that is admired by people around the world.
Please look forward to the contributions that Yamaha can makein the years to come.

President and Representative Director
Yamaha Corporation

The United Nations Global Compact
The United Nations (UN) Global Compact was proposed by the Secretary General of the UN in 1999 and consists of 10 universally
accepted principles in the areas of human rights, labour, the environment, and anti-corruption. The top management of companies
that become signatories to the Global Compact pledge their commitment and, within the scope of their enterprises, promise to work
consistently to achieve the objectives espoused under the 10 principles. Since signing the Global Compact in June 2011, Yamaha has
actively worked to cooperate with the Global Compact Network Japan in conducting subcommittees.

The 10 Principles of the United Nations Global Compact
Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.

LabourPrinciple 3: Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery

CSR Report 20155

Business Overview
Business Domains

Musical Instruments

Audio Equipment

Yamaha manufactures and sells musical instruments, operates music schools
and English language schools, distributes music and video content, operates
a record company and conducts other business such as publishing.

Yamaha manufactures and sells audio equipment for consumer and professionaluse, online karaoke for professional use, telecommunications equipment such asrouters, and voice communication devices such as conference systems.

PianosAV ProductsWind instruments

String Instruments

Network Devices

PA Equipment

Educational Musical Instruments
Digital Musical Instruments

Percussion Instruments

Music Software

Soundproof Rooms

Music Schools, English Language Schools

Electronic Devices
In addition to amusement devices, audio and video LSIs for automotive use
and home electronics, Yamaha manufactures and sells geomagnetic sensors
for mobile equipment such as smartphones.
Semiconductors

6

Yamaha Corporation

Music Production Equipment
and Software

Voice Communication Devices

OthersIn addition to its Golf Products, Automobile Interior Wood Components andFactory Automation (FA) Equipment businesses, Yamaha has a Resort
business that includes the management of three resort facilities.
Automobile Interior
Wood Components

FA Equipment

Golf Products

Resort Facilities

Global Network

Sales, service, etc.

Manufacturing, development, etc.

Key Financial Indicator Trends (Consolidated)
Net Sales by Segment and Net Income (Loss)
Musical Instrument

Audio Equipment

Electronic Devices

Net Sales by Region
Others(Million yen)

600,000

Net income (loss)

Japan(Million yen)

(Million yen)

150,000

432,177

400,000

100,000

North America

EuropeAsia, Oceania and Other Areas

500,000

432,177

400,000
300,000

200,000

50,00024,929200,00000

100,000-50,000
2010

2011

2012

2013

2014

0
2010

(FY)

2011

2012

2013

2014

(FY)

Progress of Medium-term Management Plan
As of the fiscal year ending March 31, 2015, the second year of Yamaha Management Plan
2016 (YMP 2016, the medium-term management plan that began in April 2013), the YamahaGroup continued to focus on the key business strategies of “accelerate growth in China andthe emerging countries,” “expand sales in the electronics business domain,” “strengthen costcompetitiveness” and “create new businesses.” Business performance as of March 31, 2015shows three consecutive years of increases, and thus sales and operating income targets for
YMP 2016 have been achieved one year ahead of schedule.

YMP125Growth in
new business

Growth inexisting business

YMP2016
New Medium-term Management Plan

April 2013
Build a foundation for growthFirst stage:

Next stage:

Achieve growth in existing business and invest
aggressively in new business development

In addition to growth of existing business,achieve growth through new business
March 2016

Quantum leap phase

CSR Report 20157

Activity Highlight 1

Creating the Core of Corporate
Management— Establishing the Yamaha Philosophy —Yamaha’s history began in 1887 with production of a reed organ.
Then, marking the 125th anniversary since its founding,in a new era we opened a new chapter in which we are facing new challenges.
Looking ahead to its 150th and 200th anniversaries with the aim sharing values and growing and developing as a united group,
Yamaha reviewed its corporate philosophy and newly formulated the Yamaha Philosophy in November 2014.
The Yamaha Philosophy incorporates the Yamaha Way, which stipulates the behavior expected of each andevery employee of the Yamaha Group.
With the Yamaha Philosophy, an expression of the corporate DNA formed over its long history,
the Yamaha Group is committed to creating excitement and cultural inspiration together with people around the world.
The following explains the Yamaha Philosophy and how it was established.

Sharing Values Throughout the Yamaha GroupAs we continue substantial progress towards the globalizationof our business activities—including mergers andacquisitions—and proceed with the division of production andsales activities in Japan, it is essential that a sense of unity andshared values are promoted within the Group. In January 2014,
our leader and president, Takuya Nakata, thus launched an
in-house project to establish the Yamaha Philosophy.
To ensure that Yamaha’s 125 years of history and traditions
are passed along, the first step was to clarify Yamaha traditions,culture, and corporate DNA, and to define its unique qualities.
In addition to that, in order to continue growing anddeveloping as an organization where employees act on theirown initiative and embrace new challenges, we reformulated
the current corporate philosophy so that all employees aroundthe world can achieve shared values throughout the Group.

Consolidated Net Sales by Region (Million yen)Asia, Oceania andOther Areas

25.9%

160,374
Total

432,177million yen

Significance for and Effects on Society• Creating new values and providing products andservices that meet the needs of the time based on
Yamaha traditions

Significance for Yamaha• Foster values that can be shared among all Group
employees• Pass down refined, unique traditions and spirit• Create an organization where everyone acts on theirown initiative and embraces new challenges

Employees by Region (People)
Japan

111,778

Purpose for Establishing the Yamaha Philosophy

37.1%(As of end of March 2015)

Asia, Oceania andOther AreasJapan

11,586

58.0%

6,541

Total

19,967employees

32.8%

Europe80,277

18.6%

North America

79,747

18.4%

Europe

1,045

5.2%

North America

795

4.0%
CSR Report 2015

9

Activity Highlight 1

Creating the Core of Corporate Management

Activating Our Corporate Culture through Frank Dialogue

The Yamaha Philosophy consists of our "corporate
philosophy," which defines the reasons we exist as acompany and the goals that we seek to achieve throughour work and corporate management; our "corporate
slogan," which is a concise expression of Yamaha's
corporate philosophy; and "The Way," which explains the
behavior expected of all Yamaha Group personnel andhow they should act on a daily basis.
Throughout the project to establish the Yamaha
Philosophy, we valued input from personnel around theworld. To deepen the understanding of our present
corporate culture we reached out to each employee
through interviews, questionnaires and roundtable talks,
which allowed management and other employees tofrankly engage in dialogue. In so doing, we raised
awareness and came to understand the path that Yamaha
should follow.
We use the Yamaha Philosophy as a foundation onwhich to build. Our goal is to consistently provide
high-quality products and services that exceed customer
expectations, to create new values, and to contribute to
the development of society and culture. We aredetermined to be a company that is needed by ourcustomers and society.

Previous Corporate Philosophy

Corporate Objective“CREATING ‘KANDO’ TOGETHER”
Yamaha will continue to create‘kando’ and enrich culture withtechnology and passion born ofsound and music, together withpeople all over the world.

Management Philosophy
Customer-Oriented andQuality-Conscious Management

Transparent andSound Management

Yamaha fully satisfies its customers by offering
quality products and services that incorporate
new and traditional technologies as well as
refined creativity and artistry.

Yamaha delivers proper returns to shareholders
by ensuring a solid business performance andachieves lasting development throughtransparent and sound management.

Valuing People

Harmony with Society

Yamaha strives to be an organization where
each person’s individuality and creativity are
respected and all can demonstrate their fullpotential through their work.

Yamaha is a good corporate citizen that
contributes to the development of society,culture, and the economy by observing laws,
demonstrating high ethical standards, andendeavoring to protect the environment.

Process of Establishing the Yamaha Philosophy

Preparation (Preliminary

Phase1 investigations, determining concepts)(January – March 2014)

Clarification of Yamaha’s DNA, Shared
Values, and corporate culture

discussions and examination of dissemination plans
Phase2·3 Broad-based(April – October 2014)
Broad-based discussions with everyone in the Yamaha Group—from management toemployees levels—based on the DNA and shared values extracted in Phase1
Reformulate to establish a corporate philosophy structure that can resonate
throughout the Group, reflecting the ideal image of Yamaha for the future• Reviewed corporate history and analyzed
Yamaha’s DNA• Executive interviews (total of 10)• Employee interviews (total of 14)• Questionnaire (5,300 Yamaha employees in Japanand 30 Group company management-level
personnel in English-speaking countries)• Employee workshops (total of 5)

10

Yamaha Corporation• Round-table discussion with Executives• Questionnaire for overseas group companies
With young employees (total of 17 times)(1,800 employees)
With mid-level employees (total of 6 times)• Interviews at overseas group companies(total of 23 times)• Deliberations among executives (monthly)Yamaha Philosophy – New Corporate Philosophy
Corporate Slogan

Sharing Passion & Performance

Corporate Philosophy(partially revised)With our unique expertise and sensibilities, gained from our devotion tosound and music, we are committed to creating excitement and cultural
inspiration together with people around the world.
Embrace Your Will

Will

While endeavoring to provide customer satisfaction and contribute to society andculture, be passionate in your work.

Stand on Integrity

Way (new)Integrity

Take pride in your work but maintain an attitude of humility, working with integrity toprovide craftsmanship and services of the highest quality.

Take Proactive Actions

Initiative

Be proactive in your work; observe, consider, discuss, and act to strengthen individual
and team performance.

Go Beyond the Limits

Challenge

Don't limit yourself—have the courage to take on new challenges.

Stick to the Goals

Commitment

Demonstrate the creativity and fortitude required to ensure your commitments are met.

Redefined as “Promises to Stakeholders”

Establishment of the “Yamaha Philosophy”(November 2014)

Spreading the Yamaha Philosophy(beginning November 2014)

Personal card
PosterYamaha Philosophy booklet in multiple languages
Currently available in 10 languages, with translation into morelanguages scheduled.
Explanatory video in multiple languages

CSR Report 201511

Production bases
Sales and marketing bases
Tianjin
Tianjin Yamaha Electronic Musical Instruments, Inc.
(established in 1989)
SuzhouHangzhou
Xiaoshan Yamaha Musical Instrument Co., Ltd.
(established in 1997)
Hangzhou Yamaha Musical Instruments Co., Ltd.
(established in 2003)

Yamaha Electronics (Suzhou) Co., Ltd.
(established in 2003)
Shanghai
Yamaha Music & Electronics (China) Co., Ltd.
(YMEC) (established in 2002)

Shenzhen

Yamaha Music Technical Shanghai Co., Ltd.
(established in 2005)

Shenzhen Yamaha Music & Electronics Trading Co., Ltd.
(established in 2013)

Yamaha Trading (Shanghai) Co., Ltd.
(established in 1996)

Activity Highlight 2

Popularizing Music in China
Parallel to the economic development in China, there has been a new focus on promoting the fine arts in Chinese schools.
The Yamaha Group has been doing businesses in China since 1989—over a quarter of a century.
We now have four production bases and a holding company in the country,
Yamaha Music & Electronics (China) Co., Ltd. (YMEC).
YMEC is working with other Group companies to grow our business even more.
In view of the corporate mission to provide a wide range of products and services and help further develop educationand culture in China through the popularization of music and musical instruments,
the Yamaha Group has been very active in the Chinese piano market—in which Yamaha is one of the largest players—
as well as the band instruments market, which Yamaha is developing through its vast expertise.
This section reports the business and music popularization activities of the Yamaha Group in China.

Piano and Band Instrument Market Scale in Each Region
Piano Market

Estimated Purchase Rate of Pianos and Band Instruments

Band Instruments Market

Piano Purchase Rate

Band Instrument Purchase Rate

Population of 10–14 year olds

(Million units)
0.6

(%)
3

(10 million)
9

0.4

2

6

0.2

1

3

0

0
Japan

China

EuropeNorth America

Note: Annual sales of new products, including those of other companies (2014)

Japan

China

0
North America

EuropeNote: Estimate by Yamaha Corporation. Sales of new products, including those of othercompanies/population of 10–14 year olds
Population data taken from World Population Prospects of the United Nations,
Department of Economic and Social Affairs, Population Division: Refer to 2012 Revision

Contributing to the Development of Music Education and Culture in
China by Growing Our Businesses
In China, it is widely believed that music and other fine arts
simultaneously promote the development of culture, enhancea person’s emotional richness, and teach discipline andmorality. Government policy has thus begun emphasizing finearts education in schools.*
Yamaha has long provided pianos and other musicalinstruments, as well as music education, in China, thereby
helping develop music education and culture in the country.
We believe that supporting budding musicians by providing
scholarships and musical instruments, as well as sponsoring
music contests and clinics, is a fine way of giving back to China,
which has been very supportive of our business. Yamaha also
benefits by these activities, which reinforce the Yamaha brandand build trust in the company. Yamaha will continue tocontribute to China through these activities as part of its global
development strategy.

Yamaha’s Vision of Business in China

Significance for and Effects on China• Raises arts education standards• Fosters cooperation and discipline/morality andenhances emotional richness through music• Promotion of high-quality, safe musical instrumentsthat are environment-friendly

Significance for Yamaha• Promotes global growth strategies• Reinforces and builds trust in the Yamaha brand• Builds trust in communities where Yamaha offices
and factories are located* Ministry of Education on promoting the development of school fine arts education(January 2014)
http://www.gov.cn/gongbao/content/2014/content_2667617.htm

CSR Report 201513

Activity Highlight 2

Popularizing Music in China

Focus on Music Promotion Activities that Meet the Needs of Societyin Three Key Ways—Contributing to Communities, Developing
Human Resources, and Contributing to a Healthy Global Environment

A company rooted in community
While conducting business in China, Yamaha is focused on thethree initiatives of contributing to local communities,
developing human resources, and contributing to a healthy
global environment. We strive to strengthen connections inlocal communities by supporting the promotion of music in theregion, fostering human resources that will promote music in
the future, and providing not only high-quality, but also safemusical instruments that are environment-friendly.
Using expertise accumulated in Japan and experienceobtained in China over the last quarter-century, we aredetermined to continue growing our business and promoting
music through fair, transparent business activities.
1. Providing opportunities that connect community
members with music
We believe that the emotional well-being of children isenhanced when they are connected with music and musicalinstruments. Accordingly, in commemoration of its 10th year of
business in China, in 2012 YMEC and four of our factories
donated musical instruments to elementary schools* as part ofa five-year project to express gratitude to the country. By theend of fiscal 2014, 33 pianos, 900 portable keyboards, and 36 AV
units had been donated to 36 schools in communities where
Yamaha has offices or factories. The retail value of these items
amounts to 2.77 million yuan (approx. 50 million yen).
Other activities supporting the popularization of music in
China include sending musicians to schools that had received
musical instruments the previous year to perform concerts, aswell as holding concerts at various locations that feature
renowned pianists.

2. Developing human resources—Supporting people whowill promote music in the future
Yamaha supports young musicians by providing scholarships
and sponsoring music contests and events. We established ascholarship program in 2000, and by the end of fiscal 2014, hadprovided scholarships totaling 2.3 million yuan (approx. 44
million yen) to 250 music students at 15 universities. The
Yamaha National Piano Competition, which started in 2012 andboasts some 20,000 participants annually, is now one of China’s
most prestigious competitions. This is another fine example of
how Yamaha supports students of music.
3. Contributing to a healthy global environment—Practicing
sustainable production activities
Yamaha ensures that its business operations give fullconsideration to the environment and safety. Based on YamahaGroup Environmental Policy, all four of the Group's factories in
China have obtained ISO 14001 certification, and three of them
have obtained Cleaner Production Audit certification based on
China’s Cleaner Production Promotion Law. Yamaha is not only
committed to observing environmental laws and regulations,but also to conserving energy and minimizing CO2 emissions.
Yamaha is also installing LED lights and reducing and recycling
materials used in shipping.
Through the Yamaha Green Campaign, we clearly explain to
our customers in price sheets and catalogs that the products
we manufacture are environment-friendly and safe, and that
our factories and band instruments feature lead-free soldering.

* Elementary school for the children of migrant farmers

Yamaha Green Campaign

Donation of musical instruments to an elementary school for the children of migrant
farmers (left); Concert at a Yamaha Music School for a school to which Yamaha had
donated musical instruments (right)

14

Yamaha Corporation

Yamaha National Piano Competition

Nationwide concert tours by
Yamaha artists

Primary Activities for Popularizing Music in China• Concerts by renowned pianists andYamaha artists• Donating musical instruments toelementary schools for the childrenof migrant farmers• Community charity concerts• Clean-ups by factory employees

Contributing tocommunities

Yamaha• Scholarship program for university
music students• Yamaha National Piano Competition• Band directors’ clinic• Band clinics

Developing
human
resources

Contributing
to a healthy
globalenvironment• Building management systems with
ISO 14001 and Cleaner Production
Audit certification andenvironmental preservation activities• Promoting safe,
environment-friendly products• Yamaha Green Campaign

School band clinics for popularizing band music and expanding the band
instrument market
Although China is the largest piano market in the world, band
instruments are played very little and school band activities
are relatively few in number (see graph on page 13). One of
the biggest reasons for this is the shortage of teachers who
can teach band instruments or can conduct bands. To makeband music more popular and build the band instrument
market, Yamaha holds workshops and clinics for school
teachers.
Yamaha’s school band clinics are based on teachingexpertise Yamaha has gained in Japan, Europe and the USA.
We send teachers to schools where they teach students witheasy-to-understand instructions using the Yamaha teaching
instrument called the Harmony Director, a much lauded
approach. We have received many requests for clinics fromschools near Yamaha sales outlets. In fiscal 2014, about 3,000
students and teachers participated in clinics at 45 schools.
China is being watched closely in recent years as band music
is really catching on at schools. One reason is that it requires
the children to coordinate their breathing in large groups,
which in turn improves cooperation and discipline and builds
team spirit.

Comments

Yamaha employee in charge of band instrument sales

Yamaha Band Director,
Resident Conductor
Shanghai University
Symphonic Band

Band Director
Huaxi Second Primary
SchoolHighly acclaimed Yamaha
band methods

Music instruction thatenhances children's discipline

Yamaha’s advanced training methods
using Yamaha Harmony Director
keyboards are enthusiasticallyendorsed by all who use them. I willcontinue to promote musiceducation with Yamaha.

Our school band department has
regularly been guided by Yamaha
since its foundation in 2000. I believe
Yamaha’s excellent methodologies
not only improve skills, but also makestudents more disciplined.

Promoting the popularization ofmusic using methods appropriate
for communities
We promote the dissemination of band
instruments and band music to help
develop China’s education culture.
Applying Yamaha expertise, we adjust toeach situation according to the region
with the aim of improving standards andexpanding activities nationwide.

General Manager, Combo
BO Division
Yamaha Music &Electronics (China) Co., Ltd.

CSR Report 201515

Activity Highlight 3

Developing Environment-friendly
Products— Soprano Recorders Made of Plant-based Resin —Recorders are traditional woodwind instruments that many people are familiar with.
They are often used in schools because even young students can readily produce sounds with them.
Yamaha started manufacturing and selling recorders in 1967. Since then, the qualities of Yamaha recorders, such as
their impact resistance, pitch accuracy and agreeable tone, have been widely recognized. Many elementary and juniorhigh schools have adopted them for their music programs.
Against this background, Yamaha began developing musical instruments for students that not only have great soundquality, but also are environment-friendly and safe to use.
The YRS-401 and YRS-402B soprano recorders developed in July 2014 are the world’s first musical instruments madeusing plant-based resin.*1 This section discusses their features and how they were developed.
*1 Yamaha recorders are sold at music stores.

World’s First Recorder Made using Plant-based Resin
Developed with a Materials Manufacturer
Yamaha strives to manufacture products that areenvironment-friendly and safe to use. We use no adhesives inmanufacturing our soprano and alto recorders. The YamahaGroup Environmental Policy states that the Group focuses ondeveloping technologies and providing products that are moreenvironment-friendly. One approach we have taken is to use anenvironment-friendly resin in the production of recorders. By
incorporating the ecodearTM polylactic acid developed by Toray
Industries, Inc., the world’s first recorders made using aplant-based resin were developed. * The use of renewable
plant-derived polylactic acid, as opposed to fossil fuel-derived
materials, helps reduce greenhouse gas CO2 emissions.

Recorders are one of the first teaching tools students
encounter when they enter elementary school. Providing themwith an instrument that is familiar to them not only arouses
their interest in music, but also in the case of Yamaha recordersthat have prominent environmental attributes, enhances theirawareness of environmental issues. Yamaha and Toray havegone the extra mile not only to create instruments of thehighest quality, but that also feature designs that convey
environmental information.
* Musical instruments commercially available as determined by Yamaha in-houseresearch in June 2014.

Rikocchi

Yamaha’s commitment to environment-friendly,
safe recorders• Our ABS recorders comply with the following regulations related
to the production and use of chemical substances. (May 2015)
Japan: Food Sanitation Law
Europe: REACH
The United States: CPSIA• Manufacturing at factories that have received ISO quality
assurance certification.
• Adoption of ultrasonic welding that eliminates the need foradhesives (soprano and alto recorders)• Adoption of environment-friendly, natural, plant-derived
cloth case

RikodonGoals in developing recorders made with resin derived
from plants

Significance for and benefits to society• Raises environmental awareness of students• Reduces CO2 emissions• Arouses student’s interest in musical instruments• Creates new values that meet the needs of the era

Significance for Yamaha• Promotes development of environment-friendly
products• Differentiates Yamaha in the educational musicalinstruments market

Use of ecodearTM for recorder bodies* ecodearTM is a trademark of Toray Industries, Inc.

CSR Report 201517

Activity Highlight 3

Developing Environment-friendly Products

Helps Students Experiencing a Musical Instrument for theFirst Time Discover the Fun of Playing Music and Raises Their
Environmental AwarenessHelping to prevent global warming by using renewable,plant-based materials
ecodearTM is a composite material that combines plant-based
polylactic acid* and petroleum resin (ABS resin) developed by
Toray Industries, Inc. Recorders manufactured using ecodearTM
have about the same workability, durability, strength andPhotosynthesis

appearance as conventional ABS resin recorders, but the
production process generates about 20% less CO2.
Given that plants grow by absorbing CO2 in the atmosphere,
the amount of CO2 generated in the production of a recorder isreduced by the amount of CO2 absorbed during plant growth.
Furthermore, fossil fuel resources are finite and being depleted,
so using renewable biomass to make instruments is asignificant benefit.
* Plant-based polylactic acid resin is produced from plant starch (currently, primarily
corn starch) via a process that includes lactic acid fermentation and polymerization.

CO2
reduction
CO2 /H2O
PLA resin
Incineration

Plant-basedmaterials

Fermentation

Starch

Bio-based
Life Cycle
Polymerization

Lacticacid
Polymerization

ecodearTM plant-based polylactic resin
The use of ecodearTM generates about 20% less CO2 emissions thanconventional ABS resin. Therefore, substituting ecodearTM for ABS resinin the production of one million soprano recorders would reduce CO2
emissions by 230 tons. This is the amount of CO2 that a car travelingaround the earth 25 times* would produce.

Recorders as a teaching tool
Collaboration with Toray has also resulted in the production of
better-sounding recorders. Since the specific gravity ofecodearTM is slightly greater than that of ABS resin, use of
ecodearTM has given Yamaha recorders a mellower, centered
tone similar to that of wooden recorders.
Yamaha has also completely changed the image of school
recorders by making them in bright colors that elicit images ofplants such as corn and sugar cane, materials from which
polylactic resin is produced. The cases are also different, having
a gentle leaf-like color and being made of natural-fiber cloth,making Yamaha recorders even more environment-friendly.

* At a fuel consumption rate of 10L/100km and an Earth circumference of about
40,000km.

Comments

Toyolac Technical Dept., Chiba Plant
Toray Industries, Inc.

18

Tokyo Toyolac Sales Section, Toyolac Dept.
Resins Division
Toray Industries, Inc.

“I want upcoming generations to have greater
environmental awareness.”“It was a great opportunity to expand the use of anenvironment-friendly material.”

I was really hoping to help reduce global warming through theuse of ecodearTM and found the request to use it to produce
recorders rather timely. I am confident that thisenvironment-friendly recorder is an ideal tool for students tolearn about the environment.

I talked about ecodearTM at a new product release, which was agreat opportunity to get the word out about thisenvironment-friendly material. The marriage of a musicalinstrument and this material was much discussed in journals ofboth the musical instrument and chemical industries. The public
response has been great. I am very happy that we have been able
to make the world a better place through products for students.

Yamaha Corporation

Opportunities for environmental education for students
In response to requests from schools and agents, Yamaha
provides introductory seminars to teach students how to playrecorders. These seminars focus on arousing the interest of
students who are playing a recorder for the first time and on
training teachers how to teach.
Fujisaki Town Tokiwa Elementary School in Minami Tsugaru,
Aomori Prefecture, Japan uses the YRS-401 for third-gradestudents. The school praises the instrument highly, stating that it
is easy to make sounds with and very durable. Students in thethird and fourth grades study waste processing, recycling andthe environment in social studies, and the recorder has been auseful tool in helping them learn about these issues.
Yamaha is committed to developing even better musicalinstruments and environment-friendly manufacturing for asustainable society.

Recorder designer“We are committed to providing students with safe,
fun musical instruments.”
Teacher
Fujisaki Town Tokiwa Elementary School
Minami Tsugaru, Aomori Prefecture, Japan

Recorders are one of the first musical instruments students
experience. Therefore, recorders need to be of high quality, as
well as safe and fun. I would be very happy if my goals are
realized when students play our recorders.

“The recorder is an environmental education toolthat sounds beautiful.”
The basic requirements for school musical instruments are thateven young students can play them, they sound good andthey can be played in a group. We decided on the YRS-401
because it meets all of these requirements. There’s also theadded benefit that we can use such a familiar object forenvironmental studies.

B&O Instruments Development Group
Acoustic Musical Instruments Development Dept.
Music Instruments Development Division
Yamaha Corporation

CSR Report 201519

Annual Activities Report

Organizational
GovernanceCommitted to Fair and Highly Transparent Management andCorporate Activities
To build trust with its stakeholders, the Yamaha Group is conducting sound and highly transparent management byreinforcing its corporate governance system, promoting compliance, and appropriately disclosing information. We arealso continuing our involvement in various CSR initiatives. In 2010, we established the Yamaha Group CSR Policy, whichclarifies Yamaha’s fundamental approach to CSR. This policy is shared with the entire Group as a means of showing
responsibility to stakeholders and contributing to the creation of a sustainable society.

CSR Promotion Plan
Subject

Important Themes

Risk Management

Reinforcing the corporate
governance system

Strengthening internal control• Streamline the internal control system and operate
appropriately• Streamline the Group policy and monitor compliance• Follow-up policy compliance bythorough monitoring and remedialactions

Thorough observation of theCompliance Code of Conduct
within the Group• Streamline compliance promotion system• Formulate Compliance Code of Conduct, streamline
manuals and spread throughout the Group• Education and enlightenment of Group employees• Streamline and appropriate operation of help line

• Understand state of the Groupthrough Risk Management
Committee Compliance Working
Group

Strengthening therisk management system• Establish a risk management system• Establish business continuity plan (BCP) guidelines andindividual regulations, and promote disasterprevention measures• Audit safety and environment of the Group in Japanand overseas• Streamline overseas safety system• Set up export control working group and streamline
export management regulations• Spread BCP to each overseas Group
company• Implement safety and environment
auditing in a planned way• Hold investor briefings• Upgrade website for investors• Promote communication withinvestors• Increase feedback of investor opinions
to the management team

PDCA activities to promote CSR• Check activities status using ISO 26000/Establish
prioritized initiatives• Establish CSR promotion targets andplans, and report the state of progress

Ensuring penetration of
CSR throughout the Group• Disseminate CSR information through websites(Intranet/Internet)• Conduct CSR education• Strengthen dissemination of
information on websites• Promote CSR education according to
the job and role

Developing a system thatreflects stakeholders’ input• Confirm the status of communications withstakeholders• Have CSR report reviewed by experts (third-party
opinion)• Investigate the CSR activities review
mechanism with stakeholders

Information Disclosure andPromoting and expanding
IR Activities
IR activities to enhance(Communication with
understanding of the Company
Shareholders and Investors)

CSR Management

Engagement with
Stakeholders

20

Yamaha Corporation

Initiatives for Fiscal 2015 and Beyond• Enhance governance of the Board of Directors byappointing outside directors• Enhance management functions and administrative
functions through the executive officer system• Ensure fair and highly transparent management
through appropriate auditing

Corporate GovernanceCompliance

Key Results up to Fiscal 2014

• Maintain an appropriate corporate
governance system• Maintain system in accordance withJapan’s Corporate Governance CodeCorporate Governance

Establishing a Corporate Governance System
Yamaha Corporation has adopted the form of a company with a
Board of Auditors. With the General Shareholders’ Meeting as its
highest decision-making body, Yamaha has built a corporate
governance system centered on the oversight and supervision ofmanagement’s execution of duties by the Board of Directors, andaudits by the Board of Auditors. Further, Yamaha has enhanced its
governance functions. In addition to establishing the Corporate
Directors Personnel Committee, the members of which are morethan half from outside of the Company, we introduced the Risk
Management Committee and Corporate Committees—convening
Management Council meetings twice a month in principle—and
established an internal control system. In conjunction withconsistent audits conducted by the company’s system of full-time
auditors, these help raise the effectiveness of governance throughfair and equitable audits by independent outside auditors.

Corporate Governance Structure (As of June 24, 2015)

General Shareholders’ Meeting
Appointment/dismissal

Appointment/dismissal

Corporate Directors
Personnel Committee

Requestfor advice

Board of Directors
Reports

6 persons(Incl. 3 Outside Directors)

Audit

Appointment/dismissal

Board of Auditors
4 persons(Incl. 2 Full-time Auditors)(Incl. 2 Outside Auditors)
Corporate Auditors’ OfficeAppointment/dismissal/supervision

Risk Management Committee
Management Council
Corporate Committees

Requestfor advice
Reports

Reports

Representative Director
1 personAppointment/dismissal

Audit

Reports•Determination of
measures forappointment•Judgments ofappropriateness ofaccounting audit

Accounting
AuditorAccounting audit

Instruction

Internal Auditing Division
Reports

Executive Officers
15 persons

Internal audit

Individual Business Divisions, Administrative Divisions, Group Companies

Message from an Outside Director
Just like a person, a company should be a good citizen that can harmonize with society andthe environment. While great emphasis is placed on the environment, society and governance(ESG), it is important to show the initiatives carried out to achieve goals not only qualitatively,
but also quantitatively. I think quantitative goals for environment initiatives are more
effectively achieved when all employees understand how the values were set. When it comesto governance, to achieve goals in ever-expanding global business operations, it is essential tounderstand the spirit of the Corporate Governance Code in everyday management. Yamaha
has huge potential. I expect it to pursue bold and aggressive business operations while notforgetting about its customers.

Outside Director
Senior Advisor, Konica Minolta, Inc.

http://www.yamaha.com/about_yamaha/csr/ A more detailed report on a wider range of topics is given on the Yamaha website.

CSR Report 201521

Annual Activities Report

Organizational GovernanceCompliance

Establishing the Compliance System and Compliance Code of Conduct
The Yamaha Group formulated the Compliance Code of Conduct in2003 and has continued to revise it accordingly since then as thebusiness environment becomes more global and social
circumstances change. It is also printed in multiple languages.
Regulations and systems have been introduced over the years. In
fiscal 2013, the external company help line began accepting emails. In
fiscal 2014, Whistle-blowing Management Regulations were establishedand revisions were made to the Compliance Code of Conduct.
Based on the Japanese Compliance Code of Conduct, eachoverseas company in the Group reflected local governing laws andregulations, and 32 companies established respective codes ofconduct. Revisions to the Japanese version are referenced, andrevisions are made in a timely manner to accommodate changes ineach region.

Versions of Code of Conduct developed for each country

Information Disclosure

CSR Management

Proactive Investor Relations Activities

Checking the Status of CSR
Activities and Establishing thePromotion Plan

Yamaha Corporation carries out timely and proactive disclosure of
information to institutional and individual investors around the world, in linewith its Disclosure Policy.
In addition to holding quarterly results briefings for stock analysts andinstitutional investors, Yamaha conducts conferences and briefings on its
management policies and individual business segments as well as factory andfacility tours as required. In fiscal 2014, Yamaha conducted facility tours of
Yamaha Piano Manufacturing Japan Co., Ltd. (Kakegawa City) and a briefing
session for musical instruments and audio equipment businesses at thecompany headquarters in Hamamatsu. For investors outside of Japan, Yamaha
provides investor relations information in English. Additionally, the Company's
management team—including the president—visits overseas locations several
times a year to foster mutual understanding through direct communication.
For individual investors, and as a part of the effort to expand its shareholder
base, Yamaha began conducting periodic conferences and briefings for individual
investors in regional cities in Japan in fiscal 2010. In fiscal 2014, briefing sessions were
held at three venues: Tokyo in November, and Yokohama and Toyohashi in March.

A conference for individual investors

22

Yamaha Corporation

Based on the foundation of and in practicing its
Corporate Philosophy, the Yamaha Group is committed
to creating excitement and cultural inspiration together
with people around the world. In doing so, Yamaha isworking to further strengthen the bond of trust it holdswith its stakeholders through its corporate activities andcontributing to the sustainable development of society.
In promoting CSR initiatives, it is important to
respond as best as possible to the needs andexpectations of society in addition to matters on which
the Yamaha Group itself focuses. Based on thisrecognition, Yamaha used the ISO 26000 internationalguidelines on social responsibility to conduct aninspection of the state of CSR activities in the YamahaGroup. By organizing activities in line with the core
subjects of ISO 26000, we verified the way that these
activities were positioned and identified the issues weshould work on. In fiscal 2014, we set a priority theme
and items for future initiatives. Moving forward, Yamahaplans to stipulate specific details and set indicators andnumerical values to measure the progress of initiatives
for each issue.

CSR Management

Engagement with Stakeholders
The Yamaha Group’s business activities are conducted throughrelationships with various interested parties. As its promise to
stakeholders, Yamaha encompasses “Customer-Oriented” and“Quality-Conscious Management,” “Transparent and Sound
Management,” “Valuing People,” and “Harmony with Society.” Inorder to pursue these values and realize our philosophy of “Sharing
Passion & Performance,” we use various opportunities for dialogue
to listen to the opinions and needs of all stakeholders and reflect
these in our corporate activities.

Opportunities and Methods for Communicating with Key Stakeholders
Customer inquiries service for each product and service(telephone and email, etc.)/ Regular business activities

Customers
General Shareholders’ Meeting/Briefing sessions for investors/
Website and e-mail magazine
for investors

Shareholders/
Investors

Global environment

Information exchange andcommunication with local
communities and NPO/NGOs

Local communities

Information exchange
meetings with regional andlocal organizations/Factory
tours/Employee participationin regional activities

Yamaha Group
Opinion surveys on business
management/ Labormanagement meetings andconsultations

Employees
Business partners(suppliers, clients,
subcontractors)

Regular business and procurement activities/Production
and sales trend report meetings/ Policy briefing sessions/
CSR surveys

Yamaha Corporation Group CSR Policy*

Our Aim is “Sharing Passion & Performance”
The Corporate Philosophy of the Yamaha Corporation Group is, “With our unique expertise and sensibilities, gained from our devotion
to sound and music, we are committed to creating excitement and cultural inspiration together with people around the world.”
Based on this philosophy, Yamaha conducts its CSR activities according to the following guidelines to further strengthen the bond oftrust with its stakeholders through its corporate activities and contribute to the sustainable development of society.
1. Yamaha provides support to people who want to perform music
and people who want to enjoy it by contributing to the
popularization and development of music and musical culture.
2. Yamaha works to maintain a healthy global environment by
understanding the significance of protecting the naturalenvironment, maintaining biodiversity, and reducing the burden
on the environment, as well as promoting the proper use of wood
resources, and cooperating with forest protection activities.
3. As a “corporate citizen” that is a member of society, Yamaha
contributes to creating a better society by actively participating inmany kinds of activities that further the development of thecommunity and culture.
4. Yamaha complies with laws and high ethical standards, works tocreate an environment in which its personnel can draw fully on
their sensitivities and creativity, and aims to build a corporate
culture that will enable it to offer better products and services.
5. For its shareholders, who support its corporate activities financially,
Yamaha aims for a high degree of transparency by disclosing
management information and engaging in active and sustained
communication. For its business partners, Yamaha conducts
transactions fairly and transparently, endeavors to deepen mutual
understanding, and works to build strong relationships of trust.

* Revised in accordance with the establishment of the Yamaha Philosophy in June 2015.

(Established in February 2010)

http://www.yamaha.com/about_yamaha/csr/ A more detailed report on a wider range of topics is given on the Yamaha website.

CSR Report 201523

Annual Activities Report

Human Rights andLabour Practices
Practicing Corporate Activities Based on Human Rights
Yamaha recognizes that respect for human rights is the foundation of corporate activities. We endeavor to adhere to theprinciples of the United Nations Global Compact for human rights and labor, and respect for diversity in employment andhuman resource development. Doing so helps us create a business environment where all employees can fully apply theirtalents and creativity through the promotion of work-life balance, human resource development programs, and open
communication between labor and management.
CSR Promotion Plan
Subject

Key Theme

Initiatives in Fiscal 2015 and Beyond

Promoting of Human Rights
Awareness• Provide education and enlightenment of employees• Promote education andenlightenment of employees

Initiatives Supporting
Employee Human Rights

Promoting initiatives thatprevent harassment• Educate and enlighten employees• Streamline and operate employee help line

• Promote education andenlightenment of employees• Maintain adequate help line
operations

Hiring and Employment

Carrying out fair evaluations
and treatment• Streamline rules and system for fair evaluations andtreatment• Develop Group rules and system• Improve personnel evaluation systems

Promoting purposeful,targeted education and training• Streamline purposeful training system• Streamline training systems inconjunction with personnel systemreviews

Developing an environmentthat supports manufacturing
and fostering human resources• Integrate production sites and clarify roles of those inJapan and overseas• Provide technological guidance for overseas
operations• Implement supervisor education (Japan)• Initiate management training at overseas production sites• Promote passing on skills• Reinforce roles of manufacturing bases• Ongoing supervisor education• Ongoing management training atoverseas production sites• Ongoing promotion of passing on skills

Promoting employee diversity• Promote diversity management plans (Japan)• Monitor hiring and employment practices in overseas
Group companies• Ongoing promotion of diversity
management plans (Japan)• Monitoring status in Group operations
overseas

Meeting employment
requirements of society• Expand employment opportunities• Promote employment of people with disabilities• Consolidate senior partner system• Promote employment of diverse
human resources (Japan)• Promote employment of people withdisabilities and increase disabled
employee percentage rate (Japan)• Review senior partner system

Human Resource
Development Initiatives

Promotion of Diversity
and Inclusion

Promoting a Better
Work-Life Balance

Improving work-life balance• Shorten total work hours• Develop and promote work-family support systems• Provide employee education and enlightenment• Provide enlightenment and information
to Group companies in Japan• Maintain/reduce percentage of
employees encouraged to fully use
paid holidays (single)• Maintain and upgrade maternity leave(single)Communication with
Employees

Enhancing communications
between labor and management• Set up labor and management meetings andconsultations• Promote labor and management
communications in each Group
company

Standardizing Group rules
and activities• Develop a Group safety and health management
system
• Implement proactive safety initiatives• Consolidate safety standards for people and goods• Promote standardization of Group rules and activities• Quickly develop rules and actions foreach Group company

Maintaining employee health• Apply general and specialized health checkups toprevent disease and work-related illness• Promote mental health care
• Promote "no smoking" policy• Develop in each Group company

Health and Safety24

Major Results up to Fiscal 2014

Promoting human rights
awareness throughout the
Yamaha Group

Yamaha Corporation

Promotion of Diversity and Inclusion

Promoting Provision of Environment for
Female Workers Based on Action Plans
Each company within the Yamaha Group in Japan has developed an action plan topromote diversity management, with the common objective of leveraging thediversity of employees to increase corporate competitiveness. Spanning the threefiscal years from 2013 to 2015, the action plans promote various initiatives at eachcompany from the perspective of employee skills development and the expansionof opportunities for participation, increased application of human resources acrossthe world, and creating and fostering an environment conducive to work.
As a part of that, in fiscal 2013, Yamaha Corporation released the Positive Action
Declaration on a portal site for information on the Positive Action Projectcommissioned by the Ministry of Health, Labour and Welfare. Then, in fiscal 2014,
when Shizuoka Prefecture re-announced its “Creating a Society for Gender Equality”
campaign, Yamaha pressed forward with promoting women in the workplace. Other
initiatives included improving the assistance program for the childcare leave systemand promoting its use, and once again acquiring the Kurumin mark received forsupporting the development of future generations in fiscal 2008 in fiscal 2014.
Yamaha Corporation currently boasts nearly an equal average number of yearsof continuous employment for male and female employees with the proportion of
women taking maternity leave and childcare leave as well as the proportion of
women returning to work after childcare leave at almost 100% in fiscal 2014.

“Kurumin” mark certification recognizing
support for developing future generations.

Number of Years of Continuous Employment(as of March 2015)(year)
25

20

20.7

20.2

20.3

FemaleMaleOverall

15

10

5

0

Promoting a Better Work-Life Balance

Human Resource Development Initiatives

Reforming Attitudes towards Workand Awareness of Work-Life Balance

Fostering Global Human Resources
Engaged in Manufacturing

The Yamaha Group has continued to actively cooperate with labor
in its efforts to promote a better work-life balance. In this manner,
the Group strives to realize corporate growth in concert with afuller life for all employees.
In an effort to reduce total work hours and prevent excessive
work, guidelines for overtime have been established. Based onthese guidelines, Yamaha Corporation encourages employees tofully use their paid leave days. In fiscal 2014, Yamaha started
sending monthly emails to employees who used an insufficientnumber of paid leave days—and to their immediate bosses—toencourage full use of said time. In August 2011, Yamaha also
introduced the “All Go Home Day at the Same Time Day” system,
in which all office employees leave the office at a designated time,
thereby shortening total hours worked and preventing excessive
work. Through these measures, consciousness towards work hours
has improved.

Based on the Yamaha Group ideal that “a company and individuals
develop together,” the Yamaha Group endeavors to encourage eachand every employee to development their capabilities throughself-realization regardless of nationality, age, gender and otherunrelated factors. It has established human resource development
programs with the goal of developing human resources that can put
Yamaha values into practice and become truly professional.
At manufacturing bases in Japan, Yamaha takes the initiative todevelop technologies and core skills that are highly competitive in
the global market and continues to pass down essential skills.
Yamaha dispatches many technicians and supervisors from Japan toprovide support and guidance in order to further improve productquality and productivity at sites overseas. To foster employees poised
to form the backbone of the Company in the future, Yamaha hascreated a system equally focused on educating and training
management at manufacturing sites and improving and passing
down essential production skills. In fiscal 2014, Yamaha started Global
Manufacturing Management Training, a local human resource
development program at Group manufacturing operations overseas.

http://www.yamaha.com/about_yamaha/csr/ A more detailed report on a wider range of topics is given on the Yamaha website.

CSR Report 201525

Annual Activities Report

The Environment
Contributing to maintaining a sound global environment
As part of the Yamaha Group Environmental Policy, each employee within the Group often engages in activities that help
protect the global environment. Examples include reducing the environmental impact of Yamaha business activities,
products and services, effectively using energy and other natural resources, and supporting regional environment
preservation activities.
The Yamaha Group has introduced an environmental management system based on ISO 14001. The Yamaha Environment
Management System specifies fundamental points to be diligently applied by Group companies in Japan and overseas.
Using this system as a guide, Yamaha is taking the initiative to conserve energy and resources in its manufacturing
processes, manage chemicals, and preserve forests and biodiversity by reducing the environmental impact and risks
related to its business activities, products and services.
CSR Promotion Plan
Subject

Key Theme

Major Results up to Fiscal 2014

Initiatives in Fiscal 2015 and Beyond

Establishing an environmental
management system• Acquire ISO 14001 certification at manufacturing
facilities in Japan and overseas• Introduce the Yamaha Environmental Management
System (YEMS) throughout the Group• Introduce environmental accounting• Maintain ISO 14001certification ateach facility• Apply Yamaha Environmental
Management System (YEMS)
throughout the entire Group

Maintaining environmental
management capabilities• Conduct environmental education and training for
employees• Train internal environmental auditors• Encourage and support environmental activities athome• Promote environmental educationaccording to job and role
• Hold training and skill improvement
seminars for internal environmental
auditors

Environment-friendly
Products and Services

Creating environment-friendly
products• Develop environment-friendly products• Conform to the laws and regulations of each country• Establish Green Procurement Standards and develop
them inside and outside of the Company• Examine internal standards for environment-friendly
products and in-house verification system• Implement in-house verification
system for environment-friendly
products• Proactively convey information about
environment-friendly products to
consumers

Climate Change Mitigation
and Adaptation

Reducing greenhouse gas
emissions related to businessactivities• Continue reducing greenhouse gas emissions at
facilities in Japan and overseas• Reduce CO2 emissions in shipping• Continue ongoing efforts to reducegreenhouse gas emissions at facilities
in Japan and overseas• Reduce energy consumption per unit
at Japanese production bases

Conducting thoroughenvironmental management
at manufacturing bases• Set and maintain voluntary standards that exceed legal
standards• Consolidate wastewater and gas processing facilities• Respond to emergency situations• Conduct environmental auditing• Reinforce environmental management
at overseas manufacturing bases• Develop a road map that conforms
with the Environmental Facility
Management Standards for pollution
prevention

Promoting reduction andrecycling of wastes• Promote zero emission of wastes• Promote effective use of wastes• Maintain zero emissions at Japanese
production bases

Conservation of Water
Resources

Conserving and effectively
using water resources• Reduce water consumption• Promote water recycling at overseas
manufacturing bases

Chemical SubstanceManagement and Reduction

Reducing the emission ofchemicals from production
processes• Thorough management of chemicals such as those
designated under the PRTR Law• Reduce the emission of chemicals from painting
processes• Implement reduction activities basedon Chemical Substances Usage
Standards

Using wood resources
appropriately and effectively• Establish Timber Procurement and Usage Guideline• Promote efficient use of wood resources• Preserve rare wood materials (develop alternative
materials)• Promote CSR procurement of wood(considering sustainability)• Promote development and use ofalternative materials for rare woodmaterials

Promoting forest preservation• Enshunada coastal forest recovery• Plant trees in Indonesia• Develop plans for upcoming forest
preservation activities

Environmental Management

Prevention of Pollution

Biodiversity Preservation
Initiatives

26

Yamaha Corporation

Conservation of Water Resources Overseas

Biodiversity Preservation Initiatives

Starting Operation of a New
Wastewater Treatment Facility ata Yamaha Factory in Indonesia

Greening Activities in Japan andOverseas

Since the first half of the 1970s, the Yamaha Group has been
recycling cooling water and wastewater from production
processes using a reverse osmosis (RO membrane) device, as wellas actively pursuing a policy to prevent leakage.
The Group built a new wastewater treatment facility at wind
instrument manufacturer P.T. Yamaha Musical Products Indonesia
in fiscal 2014. The new facility enables the reuse of 60% or more of
the water used. Furthermore, wastewater treatment processes arerationalized to reduce the use of chemicals.

Wastewater treatment facility in Indonesia

Since fiscal 2005, Yamaha Corporation and six local Indonesiansubsidiaries have carried out Yamaha Forest tree-planting activities
in Indonesia. Phase II (fiscal years 2010–2014) of the project
involved planting 52,800 saplings over approximately 50 hectaresin Ciremai National Park in Kuningan, West Java. The saplings
continue to be taken care of and the planted areas are quickly
becoming forests.
Additionally, since 2007, Yamaha Corporation has been
supporting efforts to restore the Enshunada coastal forest in
Hamamatsu, Japan, where its head office is located. The forest had
been severely damaged by wood-boring ambrosia beetles. In
October 2014, in the seventh round of tree planting,approximately 150 people planted a total of 300 trees.

Local students planting trees(Indonesia)

Commemorative photo in front ofcoastal forest (Japan)

Preventing Global Warming

External Evaluations

Promoting Various Energy-saving
Measures at Factories

Promoting Environmental
Conservation Activities

Hangzhou Yamaha Musical Instruments Co., Ltd. introduced
various energy-saving measures to suppress growing energy
consumption as a result of increased production. For example, in
fiscal 2014, an automatic control system for dust collectors wasintroduced and digital electric meters were installed inswitchboards to further minimize energy consumption, thereby
reducing down time for machinery at night.
At Yamaha Fine Tech Co., Ltd., power consumption was
reduced by efficiently managing air-conditioning and sprinklingwater on the factory roof during the period of peak power
consumption. In fiscal 2014, a summer system (July–September),whereby the start time is moved two hours ahead to 6:00 a.m., wasintroduced for the automobile interior parts painting process.
Through these measures, power consumption was reduced in thethree-month period by 200,000kWh as compared to fiscal 2013.

Yamaha promotes environmental conservation in its businesses andencourages environmental conservation in communities, at work andin the homes of employees. These activities have been noted,
resulting in Yamaha winning the grand prize in Fujinokuni Eco
Challenge 2013—a campaign in Shizuoka Prefecture—and the grandprize in the Rengo Eco Grand Prix 2013 of the Japanese Trade Union
Confederation. Yamaha was also designated a finalist in the 2015
Low-Carbon Cup, in which companies and organizations throughout
Japan share their respective practices and knowledge on strategies tomitigate global warming, and received the highest ranking of S in the
Eco-Friendly Business Category of
the fiscal 2014 Hamamatsu City
New Energy/Energy Conservation
Top Runner Certification Program
in recognition of its energy
conservation promotion and
Finalist certificate from The 2015
awareness activities.
Low-Carbon Cup

http://www.yamaha.com/about_yamaha/csr/ A more detailed report on a wider range of topics is given on the Yamaha website.

CSR Report 201527

Annual Activities Report

Fair Operating Practices
Conducting Fair Business Activities that Are Trusted by Society
The Yamaha Group is committed to fair operating practices that meet societal expectations for developing a healthysociety rooted a market economy.
Based on the Yamaha Compliance Code of Conduct, Yamaha complies with the Act on the Prohibition of Private
Monopolization and Maintenance of Fair Trade and other international fair competition laws, pursuing fair competition
through honest advertising, builds and maintains fair relationships based on partnerships, rejects dubious relationships,
and respects intellectual property rights.
Furthermore, to promote CSR not only within the Group, but also by suppliers of materials and parts, Yamaha policies
regarding procurement and CSR are explained to suppliers, who are also requested to comply with concepts related torespect for human rights, labor, health and safety, and fair trade.
CSR Promotion Plan
Subject

Major Results up to Fiscal 2014

Initiatives in Fiscal 2015 and Beyond

Anti-corruption

Preventing corruption andbuilding a deterrence system• Develop rules prohibiting the giving of gifts andentertainment activities• Provide employee education and training• Set guidelines for gift giving andentertaining in each Group company

Responsible Political
Involvement

Maintaining transparency
with respect to politicalparticipation• Consolidate systems for preparatory conferences• Implement auditor's audits (reviews)• Consistently apply systems for
dialogue, conferences and audits

Fair Competition

Strictly adhering to faircompetition and building adeterrent system to eliminate
anti-competitive behavior• Consolidate fair competition policies• Provide employee education and training• Consolidate systems for complying with the Act
against Delay in Payment of Subcontract Proceeds, etc.
to Subcontractors• Provide employee education andtraining in each Group company

Promoting Social
Responsibility in the
Value Chain

Promoting CSR procurement• Set CSR initiatives for supplier selection• Check CSR initiatives of new suppliers• Establish standards for supplier CSR behavior• Disclosing policies for materials and parts procurement• Raise standards for supplier CSR Codeof Conduct• Combat the use of conflict minerals• Promote CSR procurement of lumber

Managing and appropriately
using intellectual property• Establish policies for respecting intellectual property
rights• Effectively manage intellectual properties owned by
Yamaha• Establish system to prevent infringement of intellectual
property rights of third parties• Provide employee education and training• Establish and manage regulations forhandling intellectual properties• Provide employee education andtraining on the appropriate use of
intellectual properties

Respect for Property Rights(Protecting Intellectual
Property)28

Key Theme

Yamaha Corporation

Promotion of CSR in the Supply Chain

Fair Relationship with Business Partners

Establishment of the Yamaha
Supplier CSR Code of Conduct

Conducting Internal Training toEnsure Fair Trade

Yamaha stipulates in the Group Purchasing Management Policies
that CSR procurement must be promoted and endeavors to makeresponsible procurements practiced. We explain our policies for
procuring materials and parts to our suppliers,* and seek to havethem comply with concepts related to respect for human rights,
labor, health and safety, the environment, and fair trade. Whenrequired, we ask suppliers to improve their procurement practices.
To further promote our endeavors, in March 2015 weestablished the Yamaha Supplier CSR Code of Conduct. In fiscal
2015, we are asking suppliers to comply with this code of conduct
and regularly assess whether or not they are. In February 2015, we
invited Mr. Hidemi Tomita—who was involved in developing the
ISO 26000 international guidelines on social responsibility—tohold an internal seminar on CSR procurement. Mr. Tomita
explained the need for supplier chain CSR in the context of recentchanges to the CSR environment and examples from othercompanies. The seminar allowed
us to deepen our understandingof CSR procurement, an areathat Yamaha needs to further
strengthen.

The Yamaha Group considers business partners to also be partners
in its effort to live up to the Group's business philosophy.
Accordingly, the Group strives to build relationships of growing
mutual trust based on open and fair trade. To ensure fair trade, andthat there is no abuse of a dominant bargaining position, in
accordance with laws and regulations as well as social norms,
Yamaha also stipulates fair trade in the Compliance Code of
Conduct and implements employee education and training
programs.
In fiscal 2014, Yamaha conducted internal training related toconsumer laws, including the Act against Delay in Payment of
Subcontract Proceeds, etc. to Subcontractors, the Act on
Prohibition of Private Monopolization and Maintenance of Fair
Trade, and the Act Against Unjustifiable Premiums and Misleading
Representations. We take up these themes as part of our humanresource training every year and discuss them in detail.

In-house seminar* When the supplier is a trading company, we make the same requests to materials
and parts manufacturers that do business with the company.
In-house training related to consumer laws

Protecting Intellectual Property

Named a Thomson Reuters “2014 Top 100 Global Innovator”
In addition to the industrial property rights of patents, designs, and trademarks, Yamaha creates and owns a large number of copyright works
in sound, music, and other fields. In particular, music-related copyrights are important intellectual property and Yamaha tries to manage andfully utilize these rights (including through legal action).
Education and training on the proper use of copyright works are also provided to employees.
We hold annual copyright seminars, during which time the Yamaha employee in charge ofintellectual property makes a presentation. In fiscal 2014, Yamaha held a lecture featuring a
speaker from the Japanese Society for the Rights of Authors, Composers and Publishers (JASRAC),
who enlightened participants about copyright protection in the music business.
In fiscal 2014, Yamaha Corporation was named a Thomson Reuters 2014 Top 100 Global
Thomson Reuters
Innovator based on high appraisal of its intellectual property activities in Japan and overseas.
2014 Top 100 Global Innovator logo

http://www.yamaha.com/about_yamaha/csr/ A more detailed report on a wider range of topics is given on the Yamaha website.

CSR Report 201529

Annual Activities Report

Consumer Issues
Pursuing Customer Satisfaction through Quality Products and Services
The ongoing provision of products and services that meet customer expectations is a key corporate mission.
The Yamaha Group not only has a Group-wide quality management system that ensures the production of high-quality
products and provision of high-quality services in place, but also provides the comprehensive disclosure of informationon these products and services. To meet the broad range of requests from our customers, we actively introduce universal
design and propose products and services for solving social issues. Through such efforts, we are determined to proactively
contribute to the drive towards sustainability.
CSR Promotion Plan
Subject

Key Theme

Major Results up to Fiscal 2014

Initiatives in Fiscal 2015 and Beyond

Product Information
Disclosure

Appropriately disclosing
information on the safety of
products and services• Disclose appropriate information on product safetyand defects• Provide information for safe product use• Apply internal regulations regarding
appropriate information disclosure

Ensuring Product Safety

Ensuring product safety andtaking immediate action whena product safety issue arises• Incorporate risk assessment initiatives into the productdevelopment process• Streamline system and operations for a timely
response to product safety issues• Enhance risk assessment effectivenessand consolidate Group -wide standards• Reinforce tie-ups with local companies
with respect to law and regulation
information in each country

Quality Assurance

Strengthening the quality
assurance system and quality
management• Establish and apply a Group-wide quality
management system• Conduct quality audits by the Quality Assurance
Division and other related departments• Acquire and maintain ISO 9001 certification• Conduct quality management training• Revise Company-wide rules andregulations to enhance theeffectiveness of the Group-wide
quality management system• Revise quality management training
systems

Contributing to sustainability
through products and services• Provide information related to environmental
consideration with products• Provide products to companies that support theenvironment• Start internal verification system forenvironment-friendly products• Proactively communicate information
related to product environmental
features to consumers

Promoting universal design• Promote a better understanding of universal design toproduct developers and designers• Introduce universal design to products• Expand the application of universal
design

Proposing solutions for issues
in society• Apply sound technology, such as the Yamaha Speech
Privacy System™

• Promote research and developmentof new technologies, products, andservices to help solve issues in society

Improving customer satisfaction
with products and services• Set up and operate a subcommittee to promote CS
activities• Establish and apply a system to that visualizes thevoice of the customer• Establish a management system for
attractive qualities• Expand departments involved insystems for visualizing the voice of thecustomer

Improving the Quality ofCustomer Response andSupport

Improving the quality ofcustomer response and support• Establish the Group After-sales Service Management
Policies• Establish global customer support system• Conduct global technical service seminar, maintainand expand Yamaha after-sales service network• Establish and introduce key
performance indicators to improvecustomer response quality• Establish criteria of customer response
skills

Personal Information
Protection(Customer Data and Privacy)

Preventing accidents bymanaging the personal
information of customers• Establish a policy for protecting personal informationand its management• Create and use a manual for managing personal
information• Conduct employee education and training• Preventing the leakage and loss of
personal information

Sustainable Consumption

Enhancing Products andServices

Improving Customer
Satisfaction

30

Yamaha Corporation

Quality Assurance

Product Information Disclosure

Producing High-quality Products

Providing Appropriate Information
and Taking Appropriate Steps When
Accidents Occur

As a promise to its stakeholders, the Yamaha Group engages incustomer-oriented and quality-conscious management. In its
efforts to fully satisfy its customers, the Group offers quality
products and services that incorporate new and traditional
technologies, as well as refined creativity and artistry.
We use the Yamaha Group Quality Management System toensure the production of high-quality products and services. As ofthe end of March 2015, Yamaha had acquired ISO 9001
international standard quality management system certification for
14 business domains covering the entire Group in Japan andoverseas. One business domain also acquired ISO/TS 16949.
At Yamaha, education and training systems are created todevelop human resources that contribute to improving quality.
The auditors in Yamaha Corporation’s Quality Assurance Divisionand each business department periodically conduct quality audits.

In the event that products, services, facility-use services, etc.
provided by the Yamaha Group inflict damage on the mental or
physical well-being or the belongings of customers, steps are
immediately taken to provide appropriate relief and to prevent any
recurrence. In effort to prevent further damage, the Group notifies
relevant authorities, undertakes a product recall and contacts
customers without delay. The means of customer notification is
tailored to the situation to ensure that information is properly andthoroughly transmitted.
In August 2013, we disclosed that the GC32S and GC32C
classical guitars had bridges that could potentially come off
because of insufficient bonding. We notified customers of themodels subject to recall via direct mail, and explained how wewere responding to the incident. As of February 2015, we hadprovided free inspections of, or repaired 75% of all the units sold.

Personal Information Protection

Appropriately Protecting and Managing Personal Information
Yamaha appropriately protects and manages the personal
information of its customers in accordance with the Yamaha
Personal Information Privacy Policy and the Personal Information
Protection Regulations, complying with laws, ordinances andregulations relating to the protection of personal information.
In fiscal 2014, a Group company mishandled personal
information. Yamaha openly disclosed the breach and apologized
to its customers. As of today, we have not received any claims orreports of misuse of the information.
As part of the education and training conducted every year,
Yamaha issues a special caution to supervisors of outsourcing
companies and conducted a survey of Group companies in Japan.
Related News Release
Notification of and apology for inappropriate sending of
postcards containing personal information is available on the
Company's Japanese website (only in Japanese):
http://jp.yamaha.com/services/fc/info/20140416/

Universal Design“Omotenashi Guide”— A Service Supporting the Universal Design of Sound
In September 2014, Yamaha Corporation announced development of the “Omotenashi
Guide”—a service supporting the universal design of sound—to help promote inboundtourism and barrier-free initiatives. Verification tests started in May 2015.
With the Omotenashi Guide, Japanese audio announcements over speakers can bedisplayed on users’ smartphones in Japanese or the user’s native language dependingon the user’s preference. The system can feasibly be used with existing audio
equipment without an Internet connection. Consequently, it is a convenient service
both for vendors and consumers.
Omotenashi Guide

http://www.yamaha.com/about_yamaha/csr/ A more detailed report on a wider range of topics is given on the Yamaha website.

CSR Report 201531

Annual Activities Report

Community Involvement
and Development
Helping to make society better as a good corporate citizen
The Yamaha Group pursues a diverse range of activities to promote and encourage the culture of music throughout theworld. As a good corporate citizen, it contributes to society through a wealth of activities.
We continue to focus on efforts that contribute to communities where we have bases in Japan and overseas. We provide
support that helps to foster future generations, participate in donation drives and social welfare activities, and are
involved in activities that promote a range of music cultures and create communities with music at their core.
CSR Promotion Plan
Subject

Key Theme

Major Results up to Fiscal 2014

Building good relations with
communities that are home toour offices and factories• Make ongoing efforts to communicate with
communities on a daily basis• Make ongoing efforts to participate in events
organized by local governments and otherorganizations• Make ongoing efforts to communicate
with communities that are home toour offices and factories• Make ongoing effort to participate in
events organized by local
governments and other organizations

Community Support
Activities

Helping communities develop• Contribute to community revitalization through music
events• Provide support that helps foster future generations• Implementing support to build communities throughmusic• Revitalize communities throughplanning and holding music events• Expand programs helping
communities that are home to ouroffices and factories• Continue ongoing support for
creating communities through music

Promoting Music Culture(Promoting Initiatives
through Sound and Music)

Help promote and develop
music culture• Support music contests and clinics• Support related to scholarships and music education
institutions• Support school music education• Continue ongoing promotion anddevelopment of music culture• Support music education

Donations and Social
Welfare Activities

Promoting donations andsocial welfare activities• Support voluntary philanthropic activities by
employees• Promote regional welfare activities• Support areas affected by disaster• Promote voluntary philanthropic
activities by employees• Promoting regional welfare activities• Ongoing support for areas affected bydisasterConnection to Local
Communities

Connection to Local Communities

Fostering Future Generations

Kitami Mokuzai Co., Ltd. Certified
as Volunteer Fire Corps Office

Providing Programs for Children
Focused on the Themes of
Manufacturing and Science

Kitami Mokuzai Co., Ltd. of Hokkaido manufactures musicalinstrument components. The company has received Japan's
Ministry of Internal Affairs and Communications’ Volunteer Fire
Corps Office Symbol (Gold Mark). Offices that cooperate withvolunteer fire brigades and demonstrate significant achievements
are being certified. In fiscal 2014, of the 8,603 volunteer fire brigade
offices in Japan, 32 were certified including Kitami Mokuzai.

Kitami Mokuzai Co., Ltd.

32

Initiatives in Fiscal 2015 and Beyond

Yamaha Corporation

Yamaha Corporation provides programs for children focused on
the themes of manufacturing and science in response to requests
from the local community. These activities are carried out on an
ongoing basis. In fiscal 2014, Yamaha continued implementing
initiatives to educate and foster children by holding handmade
guitar classes andkalimba-making classes as ameans for children toexperience manufacturing
through musicalinstruments.
Handmade guitar classFostering Future Generations

Creating Community through Music

Baseball Clinics for Youth Teams

Creating a Music Community
through the Oto-Machi Project

The Yamaha Baseball Club regularly holds clinics for local youth
baseball teams in an effort to contribute to communities andsupport local youth through sports. At these clinics, members of
the Yamaha Baseball Club provide guidance and instructions inpitching, fielding (catching and throwing) and batting. Some 44
such clinics have been held to date. In fiscal 2014, five clinics were
held in Shizuoka Prefecture, with a total of 74 teams and 1,055
players participating. At the request of Shizuoka Prefecture, theclub taught children with no baseball experience how to use theirbodies to make long
throws, which
contributed to
improving the overall
skills of elementary
students in theprefecture.
Baseball clinic for youth baseball team

Yamaha Music Japan Co., Ltd. developed the “Oto-Machi Project
for Creating Musical Towns.” The aim of the project is to create asustainable community by harnessing the power of music toconnect people, and by arranging times and places where local
people can casually gather to play music.
In fiscal 2014, our big band training course for apartment
residents—jointly operated by Mitsubishi Corporation andNomura Real Estate
Development Co., Ltd.—
received the Good
Design Award in theCreation of Town, Local
Area or Community
category.
Funabashi Mori no City “Forest City Big Band”

Community Support Activities

Revitalizing Communities through Musical Events

Supporting the Cauca Wind
Orchestra

Hamamatsu Jazz Week

YMLA established theCauca Wind Orchestra(OCV).* Cauca is aregion in Colombia
where there is a great
deal of coca cultivation.
FARC terrorist
bombings andChildren participating in the OCV
kidnappings arecommonplace.
OCV's activities are intended to change the lives and hearts ofchildren through music, and to provide a degree of security forthe local populace. OCV aims to advance the sound developmentof youngsters in the Cauca region of Colombia throughorchestral music.

Each year, Yamaha Corporation holds “Hamamatsu Jazz Week” incooperation with the city of Hamamatsu—home of theCompany’s headquarters—and other co-organizers. The event has
a variety of programs that can be enjoyed by people of all ages,
and through it Yamaha is cooperating with the Hamamatsu city
government’s efforts to create a city with music at its core.
In fiscal 2014, the 23rd Hamamatsu Jazz Week received the Best
Live Performance Award at the 4th NISSAN PRESENTS JAZZ JAPAN
AWARD organized by JAZZ JAPANmagazine. The award is given
annually to the best in music, film,
and live events.

* This music program began in  in cooperation with the Polifonia
Foundation and Incolmotos S.A. The goal was to enhance the musical skills ofchildren of the poorest people in the area by providing them with free music
lessons and loaning them instruments so they could play orchestral music.
Yamaha Jazz Festival, which concluded Jazz Week

http://www.yamaha.com/about_yamaha/csr/ A more detailed report on a wider range of topics is given on the Yamaha website.

CSR Report 201533

Third-party Opinion

The Yamaha Group is focused on ensuring better communication with all stakeholders in order to respond to various
CSR-related issues globally. This year, Ms. Makiko Akabane shares her opinions on Yamaha’s CSR activities and the Yamaha
CSR Report 2015 to help us make improvements going forward.

told that the Yamaha Philosophy has already been translated
into 10 languages; this being done on a voluntary basis, withthe employees of overseas affiliates translating it into theirnative languages. I believe that this stems from the Yamaha
approach of engaging all employees, and generating a sense of
Director, JapanCSR Asia Tokyo Officehappiness and pride of being part of the Yamaha Group.
Considerable progress has also been made in the area of CSR
procurement, including the establishment of the Yamaha
Supplier CSR Code of Conduct in fiscal 2014. I fully understandThis is the third consecutive year I’ve had the honor of giving a

how difficult it is to have uniform standards for the Group, which

third-party opinion on the Yamaha Group CSR Report. Over thisoften has to deal with different situations on a case-by-caseperiod, the Group has made significant progress in CSR. In fiscal

basis. Managing a broad range of products in the sound and2013, Yamaha reviewed its status in line with the core subjects

music market requires dealing with all kinds of suppliers. Thatof ISO 26000, providing guidance on social responsibility andbeing said, Yamaha was determined to establish the Code ofconfirming outstanding tasks that need to be completed to

Conduct to demonstrate its sense of obligation to conduct

achieve its goals. In fiscal 2014, the Company embarked on

responsible global procurement. CSR procurement, along withbuilding a system that will enable it to meet its CSR aspirations

climate change, is one of the most important CSR themes. To

based on the tasks confirmed. Even though Yamaha hadrealize CSR procurement, it is essential that all divisions andformulated a CSR policy, it felt a sense of crisis regarding

departments concerned collaborate together. I would likestructural shortcomings that compromised its CSR goals.

Yamaha to be flexible in its ongoing efforts in CSR procurement

Accordingly, a system for CSR management was quickly

because it is such a vital activity for the Yamaha brand.

established. Furthermore, each related division presented CSR

Lastly, I would very much like Yamaha—with a history as atasks that need to be carried out as initiatives from fiscal 2015

global leader in the sound and music market for more than 125

onwards. These tasks are to be incorporated in the mid-term

years—to consider one thing: the establishment of a systemmanagement plan, so that the newly established CSR systemthat enables all Group companies in Japan and overseas towill take root and function throughout the Group. Owing to an

share CSR initiatives. Over the last three years, the Yamaha

extraordinary Group-wide effort, the CSR management system

Group has achieved exceptional progress in CSR, with the Japanwas constructed in a short period of time by utilizing input fromhead office playing a pivotal role in building the foundation of

all divisions.

the Group’s CSR management. However, I would like to see CSR

In 2014, the Yamaha Philosophy was established following

34

promotion bases expanded overseas as well. Circumstances

extensive discussions among management and otheroverseas are likely to be very different from those in Japan, andemployees in Japan and overseas. This process exemplified

difficult for the Japan head office alone to deal with. Overseas“stakeholder engagement,” where management and otherbases have their own experiences and knowledge that theemployees collaborated to decide corporate policies. I admire

Yamaha Group needs to increasingly tap into. I sincerely hopethe management’s commitment to adopt this approach. Manyto see Yamaha, with its rich and extensive history, continue toother companies have been hesitant to follow suit. I have beenachieve further growth on the global stage.

Yamaha Corporation

Response to Third-party Opinion
As was done in the two previous years, we received feedback on our CSR activities and CSR report from Ms. Makiko
Akabane, Director, Japan, CSR Asia Tokyo Office—a think tank with the largest network in Asia specializing in CSR andsustainability. We are most grateful to her for her efforts.
This CSR report explains the Yamaha Philosophy, and Ms. Akabane has evaluated us highly for establishing it as an
expression of the value we place on engaging with our stakeholders. I am most pleased that the significance of
Yamaha’s aim in establishing the Philosophy is evident and appreciated.
Ms. Akabane showed a deep understanding of the nature of our business, giving us some supportive feedback
and high marks for progress in CSR procurement, which we have been reinforcing. With main support originatingfrom the Procurement Division, we are determined to continue our CSR procurement initiatives.
As Ms. Akabane pointed out on the issue of setting up CSR bases overseas, we agree. Understanding CSR
initiatives, policy decision-making, and the implementation of measures, the work cannot be done withoutestablishing systems in Japan and overseas if we are to develop global business successfully. We have been working
closely with each overseas base, but will clarify the framework of our global activities and further upgrade our CSR
activities as a unified Group.
Lastly, I must mention the high marks given to us by Ms. Akabane on our greatly advanced CSR. These marks are afunction of her spot-on suggestions over past three years, and I would like to thank her again. As a global leader in thesound and music market, the Yamaha Group has earnestly adopted the points she made, and will continue tocontribute to the development of a sustainable society through its business activities.

Director,
Senior Executive Officer
Operations Group Manager
Yamaha Corporation

External Evaluation
Inclusion in Socially Responsible Investment (SRI) Indexes
Socially Responsible Investment (SRI) indexes* and funds in Japan andother countries evaluate potential investments not only from afinancial perspective, but from CSR environmental viewpoints as well.
Yamaha Corporation continues to be listed in various SRI indexes and
SRI funds around the world.

• FTSE4Good Global Index (managed by Britain's FTSE)• Morningstar Social Responsibility Index (MS-SRI)* An index that monitors movements in the share prices of companies grouped
together and selected for their outstanding financial and CSR qualities.

Credit Ratings (as of March 31, 2015)
As a means of measuring financial soundness, each year Yamaha
Corporation requests a long-term bond credit assessment from bondratings agencies. The results are shown below.

Rating and Investment Information, Inc. (R&I)

A

Japan Credit Rating Agency, Ltd.(JCR)A+

Major Awards and Evaluations in Fiscal 2014
Human Rights and Labour Practices

the Kurumin mark (August 2014)• Acquired
for supporting the development of future
generations

The Environment

S-Class certification (highest• Received
certification level) in the Eco-Friendly
Business Category of the Hamamatsu City
New Energy/Energy Conservation Top
Runner Certification Program

Finalist Award of the 2015
• Received
Low-Carbon Cup

Fair Operating Practices

in Thomson Reuters 2014 Top 100• Listed
Global Innovators

Consumer Issues

acoustic conditioning panel awarded• ACP-2
the Gold Prize (Interior and Household
Equipment Category) in the Home Theatre
Grand Prix of a magazine specializing in thehome theatre market

Design Award• Good· CX Series Grand Pianos (GOOD DESIGNBEST 100)· Clavinova CVP Series Digital Pianos(Long Life Design Award)
Also received awards for three otherproducts

Design Award• iF· Relit
LSX-170, LSX-70
Red
Dot
Award in Product Design• · ClavinovaDesign
CLP-585• Yamaha Music Schools selected for 100

Postwar Japanese Innovations of the Japan
Institute of Invention and Innovation

Community Involvement andDevelopment

International Wind Instrument• Hamamatsu
Academy and Festival received the 25th
Japan Academic Society of Wind MusicAward from the Japan Academic Society ofWind MusicBest Live Performance Award• Received
during the 23rd Hamamatsu Jazz Week atthe 4th JAZZ JAPAN AWARD organized by
JAZZ JAPAN magazine

CSR Report 201535

General Administration Department,
General Administration Division
http://www.yamaha.com/

This Report uses a waterless printing method. Printing is undertaken utilizing vegetable oil inks free of volatileorganic compounds on FSC-certified paper.

2015.8