Kamigata Declaration of
Corporate Social
Contributions– In Pursuit of Ambitious Corporate Management –Committee on CSR and Corporate Ethics
Kansai Association of Corporate Executives(Kansai Keizai Doyukai)
May 14, 2007

Contents
I.
II.
III.
IV.
V.
VI.
VII.

VIII.
IX.

Perception of the Current State of Affairs
Kamigata Philosophy on Corporate Social Contributions
Kamigata Kakun (Family Precepts) and Ethics
Pioneers of Kansai Economic Circles
Kamigata Declaration of Corporate Social Contributions– In Pursuit of Ambitious Corporate Management –Relationship between Forerunners' Sense of Ethics andthe "Kamigata Declaration of Corporate Social Contributions"
Reference (1) – Efforts Made by Kansai Corporations Today –Reference (2) – Notes –Reference (3) – Sources –Committee Activities
Member List

<Map of Japan>

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I. Perception of the Current State of Affairs
1. Basic Understanding
Recently, it is rare for a single day to go by without the media covering a story on
corporate social responsibility (CSR). The term CSR is not a new concept, but
one that has been around for many years. In fact, not a few of Japan's
entrepreneurs in the Edo (1600-1868) to Meiji (1868-1912), Taisho (1912-1926)
and Showa (1926-1989) periods were well aware that the corporation existed forsociety.
Factors such as frequent corporate scandals, the increasing influence ofeconomic globalization, stricter monitoring of corporate activities typified by therise of consumer groups, NPOs and NGOs, and IT development that allows
instantaneous communication of scandals throughout the world have contributed
to CSR attracting much attention not only in Japan but also overseas.
Especially in Japan, companies were able to recover after the bursting of theeconomic bubble by painstaking efforts toward improving operational efficiency.
During this process, however, there began to be an interspersing of companies
playing M&A money games, overemphasizing stockholders or stressing the
pursuit of short-term profits.
Inclinations toward compliance and CSR began to see more light as a critical
reaction to these types of developments. Yet, we cannot but feel that these
theories imported from the U.S. are merely being peddled here.
Some, if not many, of the practical efforts that have been expended, namely
establishing a CSR division, having employees sign ethics charters andgenerating CSR reports, have only been for appearances. In some cases,
companies see CSR simply as a PR exercise to promote a better corporate
image, meanwhile those in the field perceive these types of activities as a
nuisance.
However, for the sound and sustainable development of our society, the lackof morals and ethics cannot be tolerated by society or the values that exist within,and it even raises questions about the significance of the respective company's
existence.

2. Fundamental Issues
CSR and corporate ethics, in essence, actually have nothing to do witheconomic bubbles or the relative state of the economy. It is imperative thatcompanies go back to the basics and reexamine their raison d'etre withinsociety.
To this end, it will be necessary to promote CSR-based management,
thoroughly enforce corporate ethics and legal compliance and reconsider themeaning of corporate governance all in order to identify what issues require
action.
And, corporate executives themselves must strive to practice ambitious
management based on the respective company's management ideals andprinciples.

-1-II. Kamigata Philosophy on Corporate Social
Contributions*
Since 2000, as evident by the Japan Association of Corporate Executives'(Doyukai) corporate white paper on "'Market Evolution' and CSR Management"
as well as the Japan Business Federation's (Nippon Keidanren) revision of its"Charter of Corporate Behavior" and accompanying "Outline of the
Implementation Guidance," economic organizations have taken the initiative inan ever-intensifying genuine discussion of CSR. The year 2003 is referred to as
the inaugural year of CSR management in Japan in which many companies
began CSR activities and all the media started to rank companies in terms of
CSR. In addition, the ISO has decided to standardize CSR by 2007 or 2008. As
a result, a larger number of corporations are now doing their best not to miss the
CSR bandwagon.
Terms like CSR, corporate governance, stakeholders and sustainability all
have entered the Japanese vernacular from another language. If told that
Western CSR represents the global standard, Japanese readily import it as isand adeptly copy it. The problem, however, is that the manner in which CSR
originated in the West should naturally differ from that in Japan, as the traditional
ethics and values of Japanese do not necessarily correspond with those ofWesterners. While Japanese now flaunt this foreign acronym CSR as if it were aperfect fit, the truth is more likely that corporate executives and employees alike
may not have really been able to adopt it as their own.
In order to get a true grasp on the principles of the matter, we at the Kansai
Association of Corporate Executives sense the impending necessity to gain afundamental understanding of the philosophy and ethics of the Kamigata
merchants in the Edo period who toiled in Osaka (our own backyard) as well as
in Kyoto, Omi and other locales that significantly influenced Osaka over theyears. We also need to take a deeper look at the practices of Kansai's
entrepreneurial pioneers who directly inherited the philosophy and ethics ofthese Kamigata merchants.
First, the business and operations carried out by a company should
contribute to the betterment of society, focusing not only on inside the company
but also society and the people within.
Second, employee morals and corporate responsibility in hiring are of criticalimportance. The corporate logic that only focuses on the good of its own
company is no longer acceptable.
In order to enable corporations to fulfill their social responsibilities, weperceive now to be the time to gain an essential understanding of what
'corporate social contributions' are and implement them. Accordingly, ourintention is to prepare the 'Kamigata Declaration of Corporate Social
Contributions' that utilizes the valuable teachings of our forefathers and publish it
as a guideline for business management.
*'Social Contribution' in this case does not merely refer to a narrow sense of voluntary service,as in charitable work or mecenat (corporate philanthropy), that can only be afforded byrelatively successful companies. It instead represents a much broader concept that has
been borne from a general idea of recognizing corporations as a social entity and includes
social contributions as well as considerations for stakeholders and the environment madethrough the company's business activities.
-2-

[Why learn from the ethics of the Kamigata merchants?]
How did the commercial philosophies in doing business, ways of the merchant, or aterm called kakun (family precepts) in days of old come about?
It dates back to the time when merchants ruled. Merchants with a national
distribution network first came on the scene somewhere around the time of Oda
Nobunaga and Toyotomi Hideyoshi (1568-1600). Once into the period of the Tokugawa
Shogunate (1600-1868), they enjoyed even more prominence. During this period, they
were most active in the large economic center of Osaka, a place also referred to as the'nation's kitchen.' While roughly half of all those in Edo in the mid 18th century belonged
to a samurai household and many in Kyoto were tied to the Emperor or nobility, only
some 8,000 of the 410,000 in Osaka were from a samurai dwelling. As 98% of the
population consisted of simple townspeople, Osaka was truly a town of merchants.
Although merchants were relegated to the lowest status in the shi-no-ko-sho classhierarchy of warriors (samurai), farmers, artisans and merchants in Edo society, theywielded great economic power. Their accumulations were, however, often levied off bysamurai, the effective ruling class. Amidst such trying circumstances, the merchantclass was forced to examine their self-worth as a people and establish the reasonabilityof their commercial endeavors. Fueling the fire was the large number of immoral
merchants engaging in dubious transactions, bribery and the like during the economic
prosperity in the Genroku era (1688-1704). It was a period that caused 'conscientious
merchants to question the very nature of commerce' and saw the beginnings of Ishida
Baigan's Sekimon Shingaku, learning of the mind and heart.
This time also gave way to a large number of kakun borne out of movements toencourage simplicity and frugality and limit the power of the merchant, which were
products of the Kyoho Reforms (1716-1745). These reforms began to cause a
noticeable number of bankruptcies and downfalls of many of the large Osaka merchanthouses, regarding which it was once said that '70% of the country's wealth wasconcentrated in Naniwa (another name for Osaka).' The remaining merchant houses
that were spared the misery of ruin took this opportunity to think seriously about theideal form of commerce in hopes that doing so just might enable their households tocontinue in prosperity. They put their heads together to create kakun in order to pass ontheir own experiences, admonitions and teachings to future generations.
As most known by that of the Omi merchants (peddlers), the idea of kakun had its
inception in their queries as to 'what doing business should be and what should bedone to continue selling for the long-term' in an effort to earn the intangible asset of trust
among the people to whom they peddled their goods. It was all in order to sell and open
shops in an unknown and unfamiliar area in other daimyo (military lord) domains during
the feudal era.
The kakun developed by Daimaru Department Stores' founder, Shimomura
Hikoemon, to the effect that 'Those who put justice first and profit second will prosper(Profit will follow)' remains a fundamental philosophy in Daimaru's operations today.
The moral values among ancestors, such as the symbiotic relationship with society,diligence, frugality, legitimate profits and honesty, all came from a vast number ofexperiences, admonitions and teachings in truly trying times and are fully applicableeven in terms of ethics in today's business world. These ideas allow us to cope with thedemanding issues we encounter on a daily basis and guide us in making various
decisions.
(Sources)• "Osaka Machi Monogatari" edited by Naniwa Monogatari Kenkyukai• "Osaka Brand Resources Report" by Osaka Brand Committee• "Shoka no Kakun: Akinai no Chie to Okite" by Yamamoto Shinko• "Edo Shoka no Kakun ni Manabu Akinai no Genten" by Arata Koji
• "Edo ni Manabu Kigyo Rinri: Nihon ni okeru CSR no Genryu" by Genma Akira and Kobayashi Shunji• "Kigyo Rinri towa Nanika: Ishida Baigan ni Manabu CSR no Seishin" by Hirata Masahiko-3-III. Kamigata Kakun (Family Precepts) and Ethics (1/4)
Ishida Baigan (See p20 *1): "Sekimon Shingaku" (Literary work
"Tohi Mondo" (City and Country Dialogues), 1738){ "Never disrespect the customer for he sustains us"
 Do not disrespect the customer because he is the one who will cultivate ourbusiness. → Customer satisfaction{"Obey the law and respect yourself"
 It is important to protect against what is forbidden by our world and show personal
restraint. → Compliance{ "If a merchant does not follow the way of the sage, he may make thesame money but his lineage is destined to fall" Even if a merchant is able to earn money without following the way of themerchant or being ethical, this type of profiting will be frowned upon by society. It
eventually will ruin the business, ultimately ending his lineage. → Compliance{ "To regain the honesty you were born with"

 One is recommended to try to regain the pure, honest heart he was born with. →Honest and sincere management{ "Any wrongdoing construed as correct should never be tolerated, even
if it is a master who does so" Even if one is the master, any wrongdoings that have been pushed forward as
being correct must be righted without hesitation. → Corporate governance{ "Frugality is, for the good of the world, to make two sufficient whenthree is necessary" True frugality involves improvising to use two in consideration of the good of theworld where three is commonly used. → Sustainability{ "True merchants seek a way to respect others while respecting
themselves" The genuine merchant mindset is to respect their partners in business as well asthemselves. → Cooperation with society{ "Kindness is not for a return" When providing kindness to others suffering from adversity, it is immaterial if you
are not thanked with gratitude from those you have saved. Such a state of mind isin no way inferior to that of a saint. The willingness to help people is of great value.
→ Spirit of volunteerism(Source)• "Kigyo Rinri towa Nanika: Ishida Baigan ni Manabu CSR no Seishin" by Hirata Masahiko-4-III. Kamigata Kakun (Family Precepts) and Ethics (2/4)<Kamigata Merchant House Teachings (17th–19th centuries)>

Sumitomo Family: Sumitomo Masatomo (See p20 *2){ "This goes without saying, but every act of work should be performed
wholeheartedly"
 It goes without saying that it is more important to focus on the heart and mind than profits
in all matters related to business. → Compliance

Daimaru Dept. Stores: Shimomura Hikoemon (See p20 *3){ "Those who put justice first and profit second will prosper (Profit will follow)" Those who put priority on being just with customers and society and put profits second will
ultimately prosper. → Customer satisfaction{ "Wealth must be akin to virtue" The backs of all price tags have a Japanese proverb to this effect imprinted upon them.
Those of wealth are obligated to conduct virtuous activities. → Charitable work

Takashimaya Dept. Stores: Iida Shinshichi's Mission Statement (See p20 *4){ "The good and bad of a product are to be clearly stated to the customers
without any falsities" → Honest and sincere management

Takashimaya Dept. Stores: Quotation from Iida Shinshichi II{ "Determine to sell robust and reliable products … Accept small profits andprovide the customers with benefits, which will ultimately benefit you"
 If you try to sell sturdy and high-quality products … you are satisfied with small profit
margins and let the customers benefit, you too will profit along the way.
→ Social contributions through the main business

Sumitomo Family: Hirose Saihei (See p20 *5){ "Never pursue frivolous profit" Never frivolously pursue quick profits. → Social contributions through the main
business{ "Do not engage in conduct that damages honor or trust" One should never engage in activities that hurt or damage honor or trust.
→ Honest and sincere management{ "Value honor and never engage in scandalous or pitiable deeds"
 Never do anything that will bring shame. Never engage in anything that is disgraceful.
→ Honest and sincere management{ "Benefiting the master even in defiance of order represents true loyalty"
 Even if orders come from the boss, master or country, it is truly loyal to disobey them if
doing so ultimately is not beneficial to the company, master or nation.
→ Corporate governance(Sources)• "Shoka no Kakun: Akinai no Chie to Okite" by Yamamoto Shinko• "Edo Shoka no Kakun ni Manabu Akinai no Genten" by Arata Koji
• "Edo ni Manabu Kigyo Rinri: Nihon ni okeru CSR no Genryu" by Genma Akira and Kobayashi Shunji• Sumitomo Group Public Affairs Committee Website <http://www.sumitomo.gr.jp/english/index.html>-5-III. Kamigata Kakun (Family Precepts) and Ethics (3/4)<Omi Merchants (1) (Mid 18th–Mid 19th centuries)>
Omi merchant creed for living{ "Waste nothing and work hard" Try your best to eliminate all wastefulness, be frugal and minimize outlays in order
to increase economic efficiency. Also, work diligently, maximize your talents andbe inventive in order to increase revenues.→ Sustainability and diligence

Nishikawa Jingoro (See p21 *6){ "The laws of the Shogunate must be heeded and abided, and the laws
must be strictly protected"
 You should take heed of that prohibited by the laws of the Shogunate and feudal
domain, and adhere to the laws. Efforts should always be made to stop anyone
who may attempt to commit an act against that which is prohibited.
→ Compliance{ "Do not take extra money even when there are no ships coming into theport. In principle, do not do anything adverse to society" Even in times when the volume of goods is scarce, do not try to sell at high prices.
Whatever it may be, never do anything that would harm those within society.
→ Cooperation with society

Nakamura Jihei (See p21 *7){ "Do not think of yourself but what is best for everybody, do not expect
high profits ... place great importance on those to whom you will sell" You should think that business is not for the purpose of your own profit but for thesatisfaction of all people, and do not demand high profits. When going to otherfeudal domains for business, sell with the best intentions of your patrons in thedomains. → The original text of 'Sanpo Yoshi' (Win-win-win situation forsellers, buyers and society)

Yao Kihei (See p21 *8){ "When employing other people's children, merchant house masters
must see it as their duty to teach them the way of business, make eacha man and send them into society" When using many children of others in employment, you must see yourself as amaster who teaches the ways of business, raises them to be men and sends themoff into society. → HR development(Source)• "Shoka no Kakun: Akinai no Chie to Okite" by Yamamoto Shinko• "Edo Shoka no Kakun ni Manabu Akinai no Genten" by Arata Koji
• "Edo ni Manabu Kigyo Rinri: Nihon ni okeru CSR no Genryu" by Genma Akira and Kobayashi Shunji-6-III. Kamigata Kakun (Family Precepts) and Ethics (4/4)<Omi Merchants (2) (Mid 18th–Mid 19th centuries)>

Nakai Genzaemon (See p21 *9){ "There is a difference between economical and stingy. Luster soon
fades when stingy. Luster illuminates billions of paths when
economical"
 Economizing differs from being stingy. Wealth accumulated from stinginess readily
wanes. However, wealth accumulated by eliminating waste and spending wisely
may produce a light that illuminates the whole world. → Sustainability{ "One who wishes for two or three generations of good people must
discretely engage in good deeds"
 The only method of sending out two or three generations of upstanding individuals
into society is to carry out good deeds without others knowing.
→ Secret acts of charity

Kobayashi Ginuemon (See p21 *10){ "Masters must serve as parents and provide guidance on all matters"⇒ Human assets
 When a master assumes the role of overseeing the younger individuals of thegroup, he must guide them in every way as if he were their parent.
→ HR development{ "In the event of an incident of misconduct and illegality whereancestral laws are broken, even if a master, all properties andpossessions must be taken away and retirement must be forced underthe eye of family and guardian" Those who have gone against the kakun bequeathed by the ancestors byreprehensible or illegal acts, even if they are masters, must have their properties
and possessions all taken away and be forced into retirement under the watchfuleye of family and guardian. → Corporate governanceTonomura Yozaemon (See p21 *11)
{ "Even when distressed after selling, be content that it was the secret ofa merchant" Even if you regret after selling that you may have sold at too low a price, youactually will gain profit down the road. → Customer satisfaction

Ito Chubei I (See p22 *12){"The nobility of the way of commerce is to benefit both seller and buyer,
replenish society and be in accord with the teachings of Buddha" The way of commerce is a noble one because it brings benefits to both seller andbuyer and provides what is lacking in society, which follows the teachings of
Buddha. → Win-win-win situation(Sources)• "Shoka no Kakun: Akinai no Chie to Okite" by Yamamoto Shinko• "Edo Shoka no Kakun ni Manabu Akinai no Genten" by Arata Koji
• "Edo ni Manabu Kigyo Rinri: Nihon ni okeru CSR no Genryu" by Genma Akira and Kobayashi Shunji• Itochu Corporation Website <http://www.itochu.co.jp/main/index_e.html>-7-

IV. Pioneers of Kansai Economic Circles (1/2)
Kubota Gonshiro (See p22 *13){ "Create goods with all your heart and embody them with the rightvalue"
 Products that serve the good of national development can only be created with allof one's wisdom and heart. However, it must not only be technologically superior,but be of benefit to all of those in society. → Social contributions through themain business

Kobayashi Ichizo (See p22 *14)
{ "The secret to business prosperity is trust, gained by sincerely putting
the customer first" → Customer satisfaction{ "Be careful not to forget the spirit of always reducing waste, be it on
the job or out in society" → Sustainability{ "Business success depends on people ... The only way to run abusiness is to develop good, capable people" ⇒ Human assets→ HR development

Torii Shinjiro (See p22 *15)
{ "Principle of Dividing Profits Three Ways"
 Profits should be employed to enhance customer service and give back to society
as well as for business expansion. → Cooperation with society{ "What is done by night appears by day" Secret acts of charity are truly virtuous and many such acts ultimately bear fruition.
→ Secret acts of charity(Sources)• Kubota Corporation Website <http://www.kubota.co.jp/english/index.html>• "Watakushi no Yukikata" by Kobayashi Ichizo• Suntory Limited Website <http://www.suntory.com/>-8-

IV. Pioneers of Kansai Economic Circles (2/2)
Matsushita Konosuke (See p22 *16)
{ "Transparent management" Have no secrets and reveal one's self as is internally and externally.
→ Compliance{ "Conflict and harmony with (valued) customers"→ Customer satisfaction{ "Products we make are like our children. Customers are their new
home" The products we make here every day are like children we raise with tender care.
Selling the products we manufacture is like giving our daughters in marriage. Just
as one is always anxious after giving one's daughter in marriage about whether
things are going well or not, so too we worry about whether our products are
performing as expected.
→ Social contributions through the main business{ "Being in the red in a company is a crime"
・ Profit in a company is the reward from society for the contribution to society
through business activities. Being in the red (or ending up with a deficit) is thesame as the company not fulfilling its true mission.
→ Social contributions through the main business{ "When it rains, open your umbrella" As when you get caught in the rain you open an umbrella, you purchase at a fair
price, sell at a fair price and make a fair profit. You do what common sense
dictates. Do not let selfish motives override your common sense and wind up
wandering around unprotected in the rain. → Honest and sincere management{ "A company is a public entity of society" → Cooperation with society{ "Example by leadership"
 It is important that executives/managers and those in positions of responsibility
must stand at the forefront and earnestly work wholeheartedly to be a model to all
employees.
→ Corporate governance{ "Matsushita Electric develops people and we also manufacture
electrical appliances" ⇒ Human assets
 The key to good management is people. First, they must be developed.
→ HR development(Sources)• "Matsushita Konosuke no Mikata, Kangaekata" by PHP Research Institute• Handouts from a lecture by Nakao Naofumi (Ex-Assistant General Manager, Corporate Personnel
Dept., Matsushita Electric Industrial Co., Ltd. and current Headmaster of Hibarigaoka Gakuen Juniorand Senior High School)-9-

V. Kamigata Declaration of Corporate Social
Contributions (1/2)– In Pursuit of Ambitious Corporate Management –We take pride in the fact that the tradition of Kamigata commerce since modern
times has been in the 'act of striving toward realizing personal growth of all
those involved in the business and happiness in the community throughsuccess of the business.' We pledge to conduct business in the full convictionthat this traditional philosophy is recognized universally.

[Serving society]{ We shall reaffirm that a corporation is a social entity and its primary duty is tocontribute to society.
{ We shall aim for our own growth through social contribution activities bypromoting exchange with diverse people as well as coming into contact withand being inspired by different civilizations, cultures and knowledge.
{ We shall strive to make social contributions not only through the independent
efforts of each company, but also in the form of corrective action that
effectively utilizes social links, such as economic organizations.

[Obey the law and respect yourself]{ We shall take the initiative in our corporate activities carried out not only inaccordance with the law and regulations but also based on moral code, while
ensuring thorough understanding and implementation of these activities by
all employees.
{ We shall never be obsessed with mere short-term profit, but makemanagement decisions based on the ethos since the inception of thecompany.

[Never pursue frivolous profit]{ We shall never let sales and profits dictate corporate conduct, but understandthat the most important principle in business is to contribute to society
through the provision of products and services that are of a reliable quality,
environmentally friendly and can be used by anyone.
{ We shall take the initiative in providing information that customers need in aclear and simple way.

- 10 -

V. Kamigata Declaration of Corporate Social
Contributions (2/2)– In Pursuit of Ambitious Corporate Management –[Waste nothing and work hard]{ We shall eliminate any wastefulness and control costs through technologicaland management innovations all in order to provide products and services atreasonable prices and obtain a fair return for the company.

[Win-win-win situation]{ We shall be conscious of a broad range of implications that globalizing
corporate activities may have and always make due considerations fordifferent groups of people throughout the world.
{ We shall reaffirm that every corporation is an entity rooted in the communityand has a responsibility to actively make efforts to respond to the requests ofthe community.
{ M&A shall never be for the purpose of short-term profits, but take place
based on the premise of contributions to society and its betterment.

[Human assets]{ Employees are precious assets entrusted to us by society. We shall neverchoose an easy way of laying off or employing under unstable labor
conditions.
{ We shall make every effort to train and educate our employees so that they
will be able to make contributions to society.

[What is done by night appears by day]{ We shall always be dedicated to charitable work and mesenat activities
without ever expecting a return or being obsessed with temporary changes in
profits. These activities shall not end with mere financial support, but include
promotion of sharing expertise and voluntary participation by employees.

- 11 -

VI. Relationship between Forerunners' Sense of Ethics and the"Kamigata Declaration of Corporate Social Contributions"Unbroken line of Kamigata Management Philosophy and the History of Implementation<Japanese
Views of Worldand Life>
Seasons,
nature→ Appreciation,
gratitude
Influence of
Buddhism,
Confucianism
and Zen→ Value ofunity andharmony→ A climate ofhumility andmodesty
Familism often
seen among
agriculturaltribesIII. Kamigata Kakun and Ethics –16th-19th centuries–
Ishida Baigan (Sekimon Shingaku)"Never disrespect the customer for he sustains us""Obey the law and respect yourself""If a merchant does not follow the way of the sage, he may makethe same money but his lineage is destined to fall""Any wrongdoing construed as correct should never be tolerated,even if it is a master who does so""Frugality is, for the good of the world, to make two sufficient whenthree is necessary""True merchants seek a way to respect others while respecting
themselves""Kindness is not for a return"Sumitomo Masatomo (Sumitomo)"This goes without saying, but every act of work should be
performed wholeheartedly"
Shimomura Hikoemon (Daimaru Department Stores)"Those who put justice first and profit second will prosper (Profit will
follow)""Wealth must be akin to virtue"
Omi merchant creed for living"Waste nothing and work hard”
Yao Kihei (Omi merchant)"When employing other people's children, merchant house masters
must see it as their duty to teach them the way of business, makeeach a man and send them into society" ⇒ Human assets
Tonomura Yozaemon (Omi merchant)"Even when distressed after selling, be content that it was thesecret of a merchant"
Nakamura Jihei (Omi merchant)"Do not think of yourself but what is best for everybody, do not
expect high profits … place great importance on those to whom you
will sell"⇒ "Win-win-win situation"
Hirose Saihei (Sumitomo)"Never pursue frivolous profit""Obey the law andrespect yourself"= Compliance,
Corporate Governance"Never pursue
frivolous profit"= Customer
satisfaction, Social
contributions throughthe main business"Waste nothing andwork hard"= Sustainability“Win-win-win
situation"= Cooperation withsocietyHigh morality ofBushidoWisdomdeveloped overa long history

IV. Pioneers of Kansai Economic Circles –20th century–"Human assets"

Kubota Gonshiro"Create goods with all your heart and embody them with the rightvalue"
Kobayashi Ichizo"The secret to business prosperity is trust, gained by sincerely
putting the customer first""Be careful not to forget the spirit of always reducing waste, be it on
the job or out in society""Business success depends on people"
Torii Shinjiro"What is done by night appears by day"Matsushita Konosuke"Transparent management""Conflict and harmony with (valued) customers"“When it rains, open your umbrella""A company is a public entity of society""Example by leadership""Matsushita Electric develops people and we also manufacture
electrical appliances"= HR development- 12 -"What is done bynight appears by day"= Spirit of volunteerism,
Charitable work

"Serving society"1= Spirit of public
serviceI. Perception of the Current State of
Affairs (Understanding the
problems)
Current corporate activities are notalways of a satisfactory level.
Be it in Japan or overseas, corporate
scandals are a common occurrence.
In Japan, companies were able to recoverafter the bursting of the economic bubble
by painstaking efforts toward improving
operational efficiency. During this process,however, there began to be aninterspersing of companies playing M&A
money games, overemphasizing
stockholders or stressing the pursuit ofshort-term profits.
Inclinations toward compliance and CSR
began to see more light as a critical
reaction to these types of developments.
Yet, we cannot but feel that these theories
imported from the U.S. are merely being
peddled here.
Some, if not many, of the practical efforts
that have been expended, namely
establishing a CSR division, having
employees sign ethics charters andgenerating CSR reports, have only been
for appearances. In some cases,
companies see CSR simply as a PR
exercise to promote a better corporate
image, meanwhile those in the field
perceive these types of activities as a
nuisance.

II. Kamigata Philosophy on Corporate
Social Contributions
Designing of guidelines in line withJapanese history, culture and traditions

I. Perception of the Current State of
Affairs (Characteristics today)
Necessity of consistency with thecharacteristics of modern society
The increasing influence of expanding
corporations and economic globalization,
the need to consider limited resources andthe environment, stricter monitoring ofcorporate activities typified by the rise of
consumer groups, NPOs and NGOs,
public condemnation in the form of
boycotts and fines, as well as advent of an
information society in which word ofscandals travels the world in an instantdue to advanced IT.
On the individual level, modern society
features unconventional traits including
loss of ambition, a dwindling sense of
personal responsibility and a lack ofcommon sense. It goes without saying thatcompanies are operating amidst such anenvironment.

CSR represents management and management
philosophies in one
V. Kamigata Declaration of Corporate Social Contributions«In Pursuit of Ambitious Corporate Management»
We take pride in the fact that the tradition of Kamigata commerce sincemodern times has been in the 'act of striving toward realizing personal
growth of all those involved in the business and happiness in thecommunity through success of the business.' We pledge to conductbusiness in the full conviction that this traditional philosophy isrecognized universally.
[Serving society]{ We shall reaffirm that a corporation is a social entity and its primary
duty is to contribute to society.
{ We shall aim for our own growth through social contribution
activities by promoting exchange with diverse people as well as
coming into contact with and being inspired by different civilizations,cultures and knowledge.
{ We shall strive to make social contributions not only through theindependent efforts of each company, but also in the form ofcorrective action that effectively utilizes social links, such as
economic organizations.
[Obey the law and respect yourself]{ We shall take the initiative in our corporate activities carried out not
only in accordance with the law and regulations but also based on
moral code, while ensuring thorough understanding andimplementation of these activities by all employees.
{ We shall never be obsessed with mere short-term profit, but makemanagement decisions based on the ethos since the inception of
the company.
[Never pursue frivolous profit]{ We shall never let sales and profits dictate corporate conduct, but
understand that the most important principle in business is tocontribute to society through the provision of products and services
that are of a reliable quality, environmentally friendly and can beused by anyone.
{ We shall take the initiative in providing information that customers
need in a clear and simple way.
[Waste nothing and work hard]{ We shall eliminate any wastefulness and control costs throughtechnological and management innovations all in order to provide
products and services at reasonable prices and obtain a fair returnfor the company.
[Win-win-win situation]{ We shall be conscious of a broad range of implications that
globalizing corporate activities may have and always make due
considerations for different groups of people throughout the world.
{ We shall reaffirm that every corporation is an entity rooted in thecommunity and has a responsibility to actively make efforts to
respond to the requests of the community.
{ M&A shall never be for the purpose of short-term profits, but takeplace based on the premise of contributions to society and its
betterment.
[Human assets]{ Employees are precious assets entrusted to us by society. We shallnever choose an easy way of laying off or employing under unstable
labor conditions.
{ We shall make every effort to train and educate our employees sothat they will be able to make contributions to society.
[What is done by night appears by day]{ We shall always be dedicated to charitable work and mesenat
activities without ever expecting a return or being obsessed with2
temporary changes in profits. These activities shall not end withmere financial support, but include promotion of sharing expertiseand voluntary participation by employees.

- 13 -

VII. Reference (1) – Efforts Made by Kansai
Corporations Today – (1/6)
Efforts by the Kansai Association of Corporate Executives
At the 44th Kansai Zaikai Seminar (cosponsored by the Kansai Association of
Corporate Executives and other organizations) held on February 10, 2006, thefollowing agreements were adopted.

3. Companies should go back to the basics of business activities(1) Based on healthy market competition, engage in business managementthat places importance on the relationships with various stakeholders
and fulfills corporate social responsibilities (CSR) without falling into
unprincipled shareholder-oriented or profit-driven management.
Corporate executives must recognize the importance of corporate
ethics and law-abiding ethos, share these mindsets with each andevery employee through their own actions and leadership, and work
toward increasing society's trust in the company.
(2) In response to the dwindling population in society, develop an
environment that enables various groups of people, including theelderly and females, to enjoy active roles in society. Furthermore, efforts
must be made to improve the ability of those who work at the genba(actual site), which is considered to be a strength of Japanese style
management, in order to ensure the conveyance of practicaltechnologies and expertise as well as safety awareness to the next
generations.
(3) Continue to create new value based on innovations achieved via
industry-academia collaborations or convergence of different industries
and fields as well as 'healthy' M&As that broaden business options. In
addition, develop human resources who are capable of accurately
assessing market needs or creating new innovations.
(4) Business circles must also strive for proactive contributions in order tocreate harmony with international society by effectively capitalizing on
the bonds of trust and mutual understanding with foreign countries andtheir people that have been nurtured through global business activities.

- 14 -

VII. Reference (1) – Efforts Made by Kansai
Corporations Today – (2/6)
Efforts by Osaka Gas Co., Ltd.
Group Management Philosophy– Value Creation Management (enhancing the four values) –Customer
Value
Shareholder
Value

Environment
SocialValue

Employee
Value

Community＝

Corporate
SocialResponsibility

Compliance
Accountability{ Appointment of outside auditors, continuous auditing by internal auditing
system→ Corporate governance (Obey the law and respect yourself){ Establishment of corporate code of conduct, committees and internal
notification system, implementation of internal questionnaires using random
sampling→ Compliance (Obey the law and respect yourself){ Establishment of department dedicated to interaction with customers, active
dissemination of information to customers, improvement of system that
ensures safe and stable supply, R&D of products that save energy and are
efficient→ Maximization of value for customers (Never pursue frivolous profit){ Hiring of the mentally and physically challenged, employment of the elderly,
creation of equal employment opportunities, various staff training programs,
assistance for self-learning, improved childcare/nursing care leave system→ Creation of comfortable working environment, employee value(Human assets){ Promotion of natural gas, development of energy-saving equipment andsystems, promotion of green purchasing and green delivery, environmental
education for employees, forest preservation→ Environmental protection (Win-win-win situation){ Invitations of children to musicals, cleanup activities together with people in thecommunity, help for the elderly to go out→ Contributions to local communities (Win-win-win situation)- 15 -

VII. Reference (1) – Efforts Made by Kansai
Corporations Today – (3/6)
Efforts by Ganko Food Service Co., Ltd.
As it is a company that provides food, Ganko Foods is making the following specific CSR
efforts that focus on food and contributions to the community:
1. Be insistent on ingredients to be served to customers from a food safety
standpoint (Never pursue frivolous profit)
Use of vegetables grown with the minimum amount of chemicals on the contract farms establishedin and around Osaka. For pork, supply from farms in Australia with free-range pigs on special feed.
Besides purchasing all fish directly from fishermen by establishing a cold chain system, efforts arebeing made to improve the quality of all farm-fresh products, such as going to Greece with trading
company representatives to verify the quality of all fish grown in a natural environment. In addition,
insisting on particular farms or areas not only ensures safety, but also promotes local industry in
the area. Support for revitalization of mangrove ecosystems in Indonesia from where our shrimp ispurchased.

2. Restaurants housed in traditional mansions and large estates allow for the
succession of cultural assets (Win-win-win situation)
It is becoming very difficult to maintain old and large estates in verdant settings due tocircumstances including the huge costs involved. Using such premises for our restaurants
effectively preserves their history, culture and landscape.
(1) "Takasegawa Nijoen" in Kyoto was built by the successful merchant, Suminokura Ryoi, in 1611.
It has also been used as a second house by the elder statesman, Yamagata Aritomo, the 3rd
Governor of the Bank of Japan, Kawada Koichiro and the 36th Prime Minister of Japan, Abe
Nobuyuki.
(2) "Hiranogo-Yashiki (estate)" in Osaka was built in the early Edo period as the residence of a
successful merchant.
(3) "Sanda-no-sato" in Hyogo has served as the home to the Ohara clan, a local ruling family,
since the late 13th century.
(4) "Rokusan-en" in Wakayama was the estate of Matsui Isuke, a successful speculator in
Kitahama during the Taisho and early Showa periods.

3. Contribution to the promotion of the local community by participating in theoperation of the Naniwa Yodogawa Fireworks Display (Win-win-win situation)
Contribution to the promotion of the local community by actively participating in the secretariat
operation of the fireworks display held in this community of Yodogawa-ku where the company's
head office is located. Held since 1989 on the banks of the Yodogawa river, it has become
entrenched as a tradition of summer in Osaka and is now established as one of the big three
events in Osaka along with the Tenjin Matsuri (festival) and Midosuji Parade. As such, thefireworks are supported by major organizations in the area. The local volunteer staff plans,
operates and implements the event. In fact, the Kansai Zaikai Seminar Award for Special
Achievement went to the Working Committee in 2007.

4. Participation in shopping street associations, industry organizations andeconomic organizations (Win-win-win situation)
Contribution to the promotion of the industry and the local community by actively participating in
the activities of various bodies and organizations including the local shopping street associations.
Also involved in the Shokuhaku (Food Exhibition), a major heralded event held in Osaka every four
years (next in 2009).

- 16 -

VII. Reference (1) – Efforts Made by Kansai
Corporations Today – (4/6)
Efforts by Nippon Life Insurance Company[Corporate Philosophy]
1. Offer insurance that the various layers of society truly want, provide a complete array ofservices and sincerely carry out our responsibility of providing financial protection for our
insurance policyholders as our first principle task.
2. Recognize the responsibility of the life insurance business as a public institution, ensure fair
and adequate management of assets and make the utmost efforts to enhance the well-being of
those throughout society.
3. With creativity based on wisdom and executive ability full of confidence, increase theproductivity of management in order to ensure the development of the company in all aspects ofthe business.
4. Ensure prosperity of the company and improve the lifestyles of all employees. In addition, strive
toward development of quality employees that become valued members of society.
5. From the perspective of independent collaboration as a member of the life insurance industry,
contribute to the spread of insurance philosophies and advancement of the industry as a whole.
Fulfill the mission of
conducting the life
insurance business

Exploit the strengths ofa mutual company

The Four Pillars of CSR
Compliance

Expand social andpublic activities{ Fulfill the mission of conducting the life insurance business in order to provide all of our customers with peaceof mind.
→ Fulfill the mission of conducting the life insurance business (Never pursue frivolous profit){ Increase the amount of gain returned to insurance policyholders in the form of dividends and reflect theopinions garnered at the meeting of representatives and Nissay Konwakai (gatherings for friendly discussion).
→ Exploit the strengths of a mutual company (Never pursue frivolous profit){ Strictly comply with the rules and regulations that are the premise behind all business operations.
→ Compliance (Obey the law and respect yourself){ Deepen the symbiotic relationship with the local community and the whole of society through activities invarious areas including environment protection, culture (for young people), senior citizens, health care andmedicine, and regional contributions. → Social and public activities[Specific social and public activities]
 Green initiatives through tree-planting and -nurturing, efforts toward reducing environmental load, support
for environment-related research→ Symbiotic relationship with the environment, environmental protection (Win-win-win situation)
 Operation of the Nissay Theatre, invitations of children to the Nissay Masterpiece Theatre, opera lessons
for youth→ Healthy development of children and teenagers, social contributions in the area of culture(What is done by night appears by day) Operation of health and welfare facility for senior citizens and scholarships for those aspiring to becomecare workers→ Social contributions for senior citizens (What is done by night appears by day) Implementation of free or low-cost medical examinations at Nissay Hospitals, retirement homes andchildren's homes→ Social contributions in the health care and medical field (What is done by night appears by day) Local cleanup activities, ping-pong classes and exhibition matches by Nissay's ping-pong club, volunteer
seminars for employees→ Regional contributions, volunteer activities (What is done by night appears by day)- 17 -

VII. Reference (1) – Efforts Made by Kansai
Corporations Today – (5/6)
Efforts by Matsushita Electric Industrial Co., Ltd.

Matsushita Electric CSR Webpage
Common perspectives

Major constituents

1. Corporate governance
2. Global & group
3. Compliance
4. Risk management
5. Supply chain
6. Brand management
7. Disclosure
8. Contribution to publicwelfare1. Environment
2. Fair businesspractices
3. Labor, human rights,
safety4. Information security
5. Corporate citizenshipactivities
6. Quality administration
7. Customer satisfaction
8. Usability

Business Philosophy
Recognizing our responsibilities as
industrialists, we will devote ourselvesto the progress and development ofsociety and the well-being of people
through our business activities,
thereby enhancing the quality of life
throughout the world.

{ Business domain-based management structure, establishment of CSR Office and CSR
Promotion Committee, appointment of outside directors and auditors, establishment of"Code of Conduct" applied to directors, executive officers and employees→ Corporate governance (Obey the law and respect yourself){ Super honest management, appointment of fair trade chief officers and export control chief
officers→ Compliance (Obey the law and respect yourself){ Establishment of Quality Administration Division and CS Office, appointment of Chief
Quality Officer in each business domain companies, incorporation of customer feedback
into product development, establishment of Customer Call Center→ Customer-comes-first principle (Never pursue frivolous profit){ Implementation of green procurement and environmental quality audits, promotion of CSR
procurement→ Relationships with business partners (Win-win-win situation){ Active efforts to promote female employees in management, promotion of flexible working
patterns, technological and human resources development in China→ Creating employee-friendly environment, employee value (Human assets){ Stricter green product criteria, promotion of Clean Factory Accreditation System, efforts toimprove energy saving, recycling management→ Environmental protection, environmental management (Win-win-win situation){ Matsushita Institute of Government and Management, Matsushita Education Foundation,
Panasonic Scholarship→ Development of human resources and leaders (Human assets){ Baseball, volleyball and basketball teams→ Promotion of sports (What is done by night appears by day)
{ Art and culture workshops, charity concerts→ Supporting the arts and culture (What is done by night appears by day)- 18 -

VII. Reference (1) – Efforts Made by Kansai
Corporations Today – (6/6)
Efforts by Suntory Limited
Corporate Philosophy
Resonating with
People and NatureManagement stability

EconomyzA quest for better products and services
zFair price setting
zAppropriate tax payment, etc.

z Preservation ofwater-nurturing forests andwater resourcesz Eco-product developmentz Green procurement andgreen purchasingz Reduction of CO2 emissions
z Eco-factory promotionz Pursuit of container recyclingz Regional environment
beautification activities atbusiness establishments, etc.

Growth potential

z Quality assurancez Encouraging sensible drinking
z Attention to universal designz Support for cultural andCompliance
Disclosure

Environment

sporting activitiesz Support for education andCorporate governanceSocietytraining of the next
generationz Participation in and supportof community eventsz Support for disaster areas intimes of need

{ Operation of independent business by company system, system of auditing by internal and external
auditors, establishment of departments and committees dedicated to specific issues→ Corporate governance (Obey the law and respect yourself){ Establishment of Code of Business Ethics, introduction of internal notification system, constantdissemination of information throughout the company→ Compliance (Obey the law and respect yourself){ Introduction of group quality policies, establishment of ad hoc committees, establishment of in-house
analysis units, promotion of appropriate disclosure→ Quality assurance (Never pursue frivolous profit){ Establishment of dedicated department for addressing customer concerns, ongoing sharing and utilizationof customer opinions throughout the company, active information dissemination, product R&D, education
on sensible drinking→ Customer-oriented ideal (Never pursue frivolous profit){ Fair transactions with business partners based on clear standards, holding of safety promotion events withbusiness partners, close and timely exchange of information and opinions with business partners→ Responsibility to and dealing with the business partners (Win-win-win situation){ Realization of "Yatte minahare" (Go for it) climate, promotion of employment of the disabled, wage systemlinked to employee evaluations, support of career development, support for balancing work withmotherhood, fostering of transparent workplace climate→ Creation of employee-friendly working environment, responsibility to and fair treatment of
employees (Human assets){ Operation of special elderly nursing homes and nursery schools, operational support for incorporated
schools→ Social contributions (What is done by night appears by day){ Suntory Hall, Suntory Museum of Art, Suntory Museum Tempozan, Suntory Music Foundation, Suntory
Foundation, Suntory Foundation and Research Institute for Next Generation→ Contributions to lifestyle enrichment (What is done by night appears by day)
{ Promotion of sports with own rugby and volleyball teams, support of next generation education andtraining through sporting activities→ Social contributions that convey dreams and excitement (What is done by night appears by day){ Development of eco-products, promotion of eco-factories, recycling of containers, preservation of forests,
eco-environment for children→ Symbiotic relationship with the environment, environmental protection (Win-win-win situation)- 19 -

VII. Reference (2) – Notes – (1/3)*1: Ishida Baigan (1685-1744)
Born as the second son to a farmer in Kameoka (in Kyoto Prefecture). Started as an apprentice fora draper in Kyoto at the age of 11. Bankruptcy of the employer's house caused him to temporarily
return to his home in Kameoka. Once again apprenticed at the age of 23. Upon being taught by
Oguri Ryoun, began on his journey as a thinker. He argued that merchants gaining legitimate profit
were the same as samurai receiving stipends within the shi-no-ko-sho class hierarchy of warriors(samurai), farmers, artisans, and merchants in feudal society. He spoke on frugality, honesty,
customer satisfaction and corporate ethics, and his philosophy was referred to as Sekimon
Shingaku (learning of the mind and heart). Along with the Omi merchants' Sampo Yoshi(win-win-win situation), he is being reassessed by history.
*2: Sumitomo Masatomo (1585-1652)
The founder of the Sumitomo Family. Born as the second son in a Samurai household. Moved to
Kyoto with his mother at the age of 12, at which time he entered the Buddhist priesthood. Exiled
due to religious oppression by the Tokugawa Shogunate. Was released from exile and returned to
Kyoto to open 'Fujiya,' which handled books and pharmaceuticals. Was not a pure merchant, but
preached the business spirit from the perspective of a person of religion.
*3: Shimomura Hikoemon Shokei (1688-1748)
Born in Settsu (in Osaka Prefecture). He peddled used clothing as the family business, actively
carving out new sales channels for countryside peddling. After witnessing the Daimonji Bonfires on
Higashiyama (Kyoto), he perceived it to be a symbol of prosperity and established a draper in
Kyoto Fushimi by the name of 'Daimonjiya.' The logo featured a large circle and the character for'Dai.' The circle signified everything under the sun. The 'Dai' character combines the character for'person' and 'one.' This naming represented his intention to become a merchant second to none.
The name was subsequently changed to the current Daimaru Department Stores.
*4: Iida Shinshichi (1803-1874)
The founder of Takashimaya Department Stores, as it is known today. Hailed from
Echizen-Tsuruga (in Fukui Prefecture) and initially apprenticed at a draper in Kyoto. His
apprenticeship was recognized and he entered the family by marrying the oldest daughter, Hide,of Takashimaya's master Iida Gihei. He subsequently opened 'Takashimaya,' a store of the same
name as that used by the main branch of the family. It handled used clothing and cotton.
*5: Hirose Saihei (1828-1914)
Born as the second son of a physician in Shiga Prefecture. Began working at Sumitomo at the ageof 11. Became the general manager of the Besshi Copper Mine at the age of 38. Modernized themine by his active introduction of Western technology. Established the unassailable foundation of
Sumitomo management and served as the company's first Director General.

(Sources)• "Osaka Brand Resources Report" by Osaka Brand Committee• "Shoka no Kakun: Akinai no Chie to Okite" by Yamamoto Shinko• "Edo Shoka no Kakun ni Manabu Akinai no Genten" by Arata Koji
• Shiga Prefecture Industrial Support Center's Sampo Yoshi Website<http://www.shigaplaza.or.jp/sanpou/index.html>• Sumitomo Group Public Affairs Committee Website <http://www.sumitomo.gr.jp/english/index.html>- 20 -

VII. Reference (2) – Notes – (2/3)*6: Nishikawa Jingoro (1582-1675)
A merchant from Hachiman (in Shiga Prefecture), he was the second generation patriarch of the
Nishikawa Family. Considered as the individual who developed the venerable franchise,
Nishikawa Sangyo, commonly known as 'Futon no Nishikawa.' Inspired by verdure shone upon by
the rays of the sun, he developed a mosquito net dyed light yellowish green with a crimson clothedge, which became a very popular new product. He created the foundation for the prosperity of
the Nishikawa Family. The family has a famous kakun known as 'Sadame no Koto' (code) that was
documented at the end of their 1807 'Kanjo Mokurokucho' (ledger).
*7 Nakamura Jihei (1685-1757)
He was a merchant from Gokasho (in Shiga Prefecture). He purchased hemp thread fromadjacent feudal domains, and then distributed it to farmers during the slack season so that they
could weave hemp cloth. He draped the cloth over a shouldering pole and set out for Shinano(present Nagano Prefecture) to sell his wares. In time, not only was he purchasing the thread fromadjacent feudal domains, but he also began to carry home the thread he had purchased whilepeddling his wares. He developed a style of business (Nokogiri Akinai) by which he would take his
products to the customer and bring back the raw materials. His 'Kakioki' (essay) penned at the ageof 70 includes a famous kakun passage.
*8: Yao Kihei (1711- ?)The founder of the current Yao Honten, a sake brewer. Was born as the second son of a farming
family in Hino, Omi (present Shiga Prefecture), but strived to be a merchant in reverence of theactivities of Musashi-no-kuni Chichibu near Edo (present Tokyo). His 25 years of apprenticeshipwas recognized and he started his own sake brewery by the name of 'Masuya Rihei.' He is an
example of someone who succeeded by climbing the social ladder from a mere apprentice.
*9: Nakai Genzaemon (1716-1805)
Born as the oldest son of a wooden bowl wholesaler. Father died when he was an infant. He
began peddling at the age of 19. Despite limited funds, he was a business genius, showing thespecial Omi merchant brand of tenacity and incorporating a commercial style of low-margin andhigh-turnover. His customers could be found throughout the Kanto region (Tokyo and surrounding
areas) and as far as Kai (present Yamanashi Prefecture) and Shinano. He detailed how tosucceed as a merchant in his 'Kanemochi Shonin Ichimai Kishomon' (One Page Testament of a
Wealthy Merchant).
*10: Kobayashi Ginemon (1777-1854)
Born in what is currently known as Kotakari Village in Higashi-Omi City (in Shiga Prefecture). He
was a merchant from Koto (the east shore of Biwako Lake). Peddled rouge, kimono (drapery) anddyed goods. Shops in Edo (present Tokyo) and Kyoto both prospered. Appointed as the moneychanger to the Hikone feudal clan (in present Shiga Prefecture). His style of commerce, referred to
as 'Chogin,' has been passed on to this day to Chogin Co., Ltd. in Nihonbashi, Tokyo. Wrote his
kakun 'Shiawase no Jomoku,' based on which a form of forced retirement was justified.
*11: Tonomura Yozaemon
The founder family of Tonoyo Co. Ltd., a long-standing textile company. Originally was a Gokasho
merchant. During his time, the 5th Tonomura Yozaemon felt that it would be difficult for the family
to prosper in agriculture alone, so he purchased hemp cloth and started peddling it throughout abroad region stretching from Osaka, Sakai (near Osaka) to Himeji (near Kobe). It was the 10th
Tonomura Yozaemon who established the kakun 'Kokoroesho (1856)' (a book of directions), which
has been handed down to the present day.
(Sources)• "Shoka no Kakun: Akinai no Chie to Okite" by Yamamoto Shinko• "Edo Shoka no Kakun ni Manabu Akinai no Genten" by Arata Koji
• Shiga Prefecture Industrial Support Center's Sampo Yoshi Website<http://www.shigaplaza.or.jp/sanpou/index.html>- 21 -

VII. Reference (2) – Notes – (3/3)*12: Ito Chubei (1842-1903)
Born in Toyosato-cho in Shiga Prefecture. Began to peddle hemp cloth at the age of 15 andheaded for Kyushu. It was the time when the isolation policies of the Tokugawa Shogunate cameto a close and overseas trade had just began at Nagasaki. Word of the prosperity lured him to
trade, leading to his subsequent establishment of the general trading firm, Itochu Corporation.
*13: Kubota Gonshiro (1870-1959)
The founder of Kubota Corporation. Born in Hiroshima. At the age of 15, he left for Osaka to servein an apprenticeship in a foundry. Founded the company as a casting manufacturer in 1890. In an
age when there was an impending demand for modern water works, he began manufacturing
cast-iron pipes for water supply (large-sized water pipes without joints) in 1893. Subsequently
succeeding at mass production, the products were used in water pipes in Osaka and Tokyo andserved as the foundation of the company's growth.
*14: Kobayashi Ichizo (1873-1957)
Born in Yamanashi Prefecture. After graduating from Keio University, worked at Mitsui Bank
(currently Sumitomo Mitsui Banking Corporation) and made a career switch to a securities
company. However, he lost his job due to the great depression. After that, he opened up railway
lines for the Minoh Arima Electric Railway Company (the current Hankyu Takarazuka Minoh Line).
He built a large bathing facility in Takarazuka City, established the Takarazuka Revue Company,
launched Hankyu Department Stores, developed Toho and initiated many other businesses,
making the Hankyu-Toho Group (currently the Hankyu Hanshin Toho Group) a huge success.
*15: Torii Shinjiro (1879-1962)
Born as the second son to an Osaka money changer. At the age of 13, he entered into an
apprenticeship in Konishi Gisuke Shoten, a drug wholesaler, in Dosho-machi, Osaka, where hedeveloped the skills to become a pioneer in the whiskey distilling business. At the age of 20, he
opened up Torii Shoten (the current Suntory). He sold port wine that suited the Japanese palate aswell as the first domestic whiskey. He made Kotobukiya (the current Suntory) a popular household
name with new pioneering products along with novel and very unique advertising methods.
*16: Matsushita Konosuke (1894-1989)
Built up Panasonic (Matshushita Electric Industrial) in his lifetime. Born as the youngest of eightchildren and the third son to a farming family in Wakayama Prefecture, he began work as anapprentice at the tender age of 9. At 15, he joined what is currently known as the Kansai ElectricPower Company (then the Osaka Electric Light Company), working there for six years. At 23, hefounded the Matsushita Electric Housewares Manufacturing Works. In 1932, he announced thetrue mission of the company. In 1935, he incorporated his company as Matsushita ElectricIndustrial Co., Ltd. and the divisions (system, instituted in 1933) were reorganized into an internal
division company system. Besides busying himself with the company's business, his also devoted
his energy to unprecedented contributions to society, such as establishment of the PHP ResearchInstitute and the Matsushita Institute of Government and Management, which he privately funded.

(Sources)• "Watakushi no Yukikata" by Kobayashi Ichizo• "Matsushita Konosuke no Mikata, Kangaekata" edited by PHP Research Institute• Itochu Corporation Website <http://www.itochu.co.jp/main/index_e.html>• Kubota Corporation Website <http://www.kubota.co.jp/english/index.html>• Suntory Limited Website <http://www.suntory.com/>- 22 -

VII. Reference (3) – Sources –(1) Publications"CSR no Saizensen" by Koga Junichiro (NTT Publishing)"CSR de Keieiryoku wo Takameru" by Mizuo Junichi (Toyo Keizai)"CSR Management" by Mizuno Junichi and Tanaka Hiroji (JPC-SED)"Genba-hatsu CSR Yuryokigyo eno Chosen" by Fujii Yoshihiro and Harada Katsuhiro (Nikkei)"CSR 'Hatarakigai' wo Tabaneru Keiei" by Nikkei CSR Project (Nikkei)"CSR – Kigyokachi wo Do Takameruka" by Taka Iwao and Nikkei CSR Project (Nikkei)"Yoroppa no CSR, Nihon no CSR" by Fujii Toshihiko (JUSE Press)"Bujinesu no Rinrigaku" by Umezu Mitsuhiro (Maruzen)"Kaisha ni Shakaiteki Sekinin ha Aruka" by Okumura Hiroshi (Iwanami Shoten)"Kaisha ha Dare no Monoka" Iwai Katsuhito (Heibonsha)"Kaisha ha Korekara Do Narunoka" Iwai Katsuhito (Heibonsha)"Shihonshugi ni Toku wa Arunoka (Le capitalisme est-il moral ?)" by André Comte-Sponville(Kinokuniya)"Naze Kigyou Fushoji wa Okorunoka (Corporate Irresponsibility: America's Newest Export)"by Lawrence E. Mitchell (Reitaku University Press)"Jizoku Kano na Hatten no Keizaigaku (Steady-State Economics)" by Herman E. Daly
(Misuzu Shobo)"Osaka Brand Resources Report" by Osaka Brand Committee"Kaitokudo: 18-seiki Nihon no "Toku" no Shoso (Visions of Virtue in Tokugawa Japan)" by
Najita Tetsuo (Iwanami Shoten)"Nihon Chonindo no Kenkyu – Shonin Kokoro no Genten wo Saguru" by Miyamoto Mataji(PHP Research Institute)"Osaka Machi Monogatari" edited by Naniwa Monogatari Kenkyukai (Sogensha)"Shoka no Kakun: Akinai no Chie to Okite" by Yamamoto Shinko (Seishun Publishing)"Edo Shoka no Kakun ni Manabu Akinai no Genten" by Arata Koji (Subarusha)"Edo ni Manabu Kigyo Rinri: Nihon ni okeru CSR no Genryu" by Genma Akira and Kobayashi
Shunji (JPC-SED)"Kigyo Rinri towa Nanika: Ishida Baigan ni Manabu CSR no Seishin" by Hirata Masahiko(PHP Research Institute)"Nihonteki Keiei no Genryu wo Tazunete" by Horide Ichiro (Reitaku University Press)"Matsushita Konosuke no Mikata, Kangaekata" edited by PHP Research Institute (PHP
Research Institute)"Watakushi no Yukikata" by Kobayashi Ichizo (PHP Research Institute)(2) URLs
Itochu Corporation
Osaka Gas Co., Ltd. (*CSR)
Ganko Food Service Co., Ltd.
Kubota Corporation
Suntory Limited (*CSR)
Shiga Prefecture Industrial Support Center(Sampo Yoshi)
Sumitomo Group Public Affairs Committee
Nippon Life Insurance Company
Matsushita Electric Industrial Co., Ltd.
(*CSR)

http://www.itochu.co.jp/main/index_e.html
http://www.osakagas.co.jp/kankyo_e/index.html
http://www.gankofood.co.jp/syokai.html
http://www.kubota.co.jp/english/index.html
http://www.suntory.com/about/standards.html
http://www.shigaplaza.or.jp/sanpou/index.html
http://www.sumitomo.gr.jp/english/index.html
http://www.nissay.co.jp/english/index.html
http://panasonic.net/csr/- 23 -

VIII. Committee Activities
2006{ July 10:

Chairperson and Vice-chairpersons' Committee"FA2006 Action Policy"{ August 28:

Chairperson and Vice-chairpersons' Committee"Social and Public Activities by Nippon Life Insurance Company"
Lecturer: Mikami Takuya,
Chief Manager Public Affairs Dept.,
Nippon Life Insurance Company"CSR at Suntory"
Lecturer: Naiki Kenji,
Executive General Manager, Corporate Social Responsibility(CSR) Department, Suntory Limited{ September 19:

Lecture meeting/Chairperson and Vice-chairpersons' Committee"The Lights and Shadows of Corporate Management in the U.S."
Lecturer: George Hara,
Group Chairman and CE, DEFTA Partners{ November 7:

Chairperson and Vice-chairpersons' Committee"Learning Corporate Management from Matsushita Konosuke"
Lecturer: Nakao Naofumi,
Ex-Assistant General Manager, Corporate Personnel Dept.,
Matsushita Electric Industrial Co., Ltd. and current Headmaster of
Hibarigaoka Gakuen Junior and Senior High School{ December 11:

Lecture meeting/Chairperson and Vice-chairpersons' Committee"Expectations for the Corporation from the Perspective ofConsumers"
Lecturer: Hiwasa Nobuko,
Director of Snow Brand Milk Products Co., Ltd.

2007
{ January 13:

Staff Meeting"Direction of How to Integrate the Recommendations"{ February 26:

Chairperson and Vice-chairpersons' Committee"Direction of How to Integrate the Recommendations"{ March 30:

Chairperson and Vice-chairpersons' Committee"Deliberations on the Recommendations (Draft)"- 24 -

IX. Member List
Committee chairperson
Torii Shingo
Senior Executive Vice President
Representative Director of the Board, Suntory Limited
Committee vice-chairpersons
Taki Tetsuro
Senior Managing Director,
Nippon Life Insurance Company
Saeki Go
President, The Japanese Institute of Certified Public Accountants
KINKI Chapter
Sakai Takashi
Operating Officer, Osaka Gas Co., Ltd.
Toyota Takashi
Chief Compliance Officer, Naito Securities Co., Ltd.
Igaki Takako
President, Art Associates Japan Inc.
Konoike Tadahiko
President, Konoike Transport Co., Ltd.
Kumagai Kyoko
President, Kumalift Co., Ltd.
Ogura Hiroyuki
President & CEO, Sushiman Co., Ltd.
Nomura Takuya
President & CEO, Super Station, Inc.
Kojima Tatsunori
Director, Ganko Food Service Co., Ltd.
Tanaka Takuya
Region Manager West Japan Public Sales,Cisco Systems, K.K.
Morita Giichi
Senior Executive Officer, Teijin Limited
Uchida Hiromichi
Managing Officer, Obayashi Corporation
Committee staff
Kanashima Taizo
Masuji Ayako
Aoki Kazuyuki
Seki Michiyasu
Tanaka Yoshimi
Tanaka Ikuo
Tasaki Yukiko
Takesue Yasumichi

General Manager,
Suntory Osaka Secretarial Department, Suntory Limited
Suntory Osaka Secretarial Department, Suntory Limited
General Manager, Public Relations Dept.,
Nippon Life Insurance Company
Assistant Manager, Corporate Research Office,Secretariat, Osaka Gas Co., Ltd.
Manager, Internal Auditing Dept., Naito Securities Co., Ltd.
Assistant Manager, Kumalift Co., Ltd.
Vice President Producer, Super Station, Inc.
General Manager Human Resources Department,
Teijin Creative Staff Co., Ltd.

Kansai Keizai Doyukai co-chairpersons' staff
Ohno KeiManager, General Affairs Department,
Nippon Telegraph and Telephone West Corporation
Sumita Kazuya
Assistant Manager, General Affairs Department,
Nippon Telegraph and Telephone West Corporation
Noda Michio
General Manager Planning Department,
Ganko Food Service Co., Ltd.
Hirose Shigeo
General Manager Planning Department,
Ganko Food Service Co., Ltd.
Secretary
Hagio Senri
Saito Michihiro
Matsuo Yasuhiro
Kaneko Shuichi
Translation
Interact Japan, Inc.

Managing Director, Kansai Keizai Doyukai
Secretary General, Kansai Keizai Doyukai
Assitant Secretary General,General Manager of Planning andResearch Department, Kansai Keizai Doyukai
Deputy General Manager, Planning and Research Department,
Kansai Keizai Doyukai<www.interactjapan.jp/>- 25 -