Olympus Corporate Social Responsibility Report

Toward Greater Involvement with Society and the Realizationof a Better Livelihood and HappinessMessage from the President
Olympus Corporation creates and proposes new values to society. With its “Social
IN” management philosophy, Olympus strives to be a responsible and integral member of society while sharing common values.
Our basic idea has always been that a win-win relationship with the various
stakeholders involved—i.e., customers, shareholders, vendors, employees, and local
communities as well as the global environment—will allow us to achieve sustainable growth and create new value through our business. Our corporate slogan, “Your
Vision, Our Future,” symbolizes our corporate desire to achieve our goals and build
a better future with all stakeholders.
In October 2004, I signed a statement addressed to UN Secretary-General Kofi
Annan, declaring that we will support and implement the 10 principles of the Global
Compact in the four areas of human rights, labor standards, the environment, andanticorruption. Thus, Olympus became the 22nd company in Japan that participates
Global Compact. We are determined to work even harder so that we may contributeto the sustainable development of society.
Preserving the global environment is an extremely critical issue for the sustainable growth of society. The Kyoto Protocol was finally put into effect in February of
2005, and it is required to reduce greenhouse gas emissions immediately by adopting substantial measures. The Olympus Group’s Basic Environmental Plan, developed as a medium-term 3-year program, places greater emphasis on measures toconserve resources and save energy as a means of reducing greenhouse gas emissions. Besides this activity, we are making effort to realize essential duel management target of corporate growth and global environmental preservation, such as thepromotion and introduction of Eco-products (environmentally concious products),
etc.
This year, Olympus presents the next evolution of its annual Environmental
Report—renamed the Corporate Social Responsibility Report (CSR Report): it is not
only to help stakeholders understand how Olympus is serving as a responsible member of society but also to encourage all members of the Olympus Group to further
strive to realize corporate social responsibility. We are very pleased to receive any
comments you may have about us.

June 2005

Tsuyoshi Kikukawa
President
Olympus Corporation

Table of Contents

Overview of the CSR Report
Editorial Policy• The Environmental Report, issued annually, has evolved into the
Corporate Social Responsibility Report (CSR Report) as a result of
Olympus’ determination to respond to social growing interest incompany’s social activities and improve the Company’s reports on
governance and sociability.
• The CSR Report is written in line with the Olympus Group
Corporate Conduct Charter (page 7). Sound Corporate Activities
and Act on Behalf of the Customer correspond to the Governanceand Economy Report; Harmony with the Environment to theEnvironmental Report; and Respect for Human Rights/Working
Environments with Vitality and Good Relationship with theCommunity to the Social Report, respectively.
• Special Features I and II deal with the CSR philosophy of Olympus
and specific actions taken in the Company’s medical and imaging
businesses.
• Olympus underwent a third party verification (page 50) for the firsttime in order to guarantee objectivity in its reports.
• The CSR Report was edited using the Sustainability Reporting
Guideline 2002 of GRI and the Environmental Report Guideline of
the Ministry of Environment (2003) as references, but it is not inaccordance with those guidelines.

2

Message from the President

4What CSR Olympus Is Working on

6

Olympus’ CSR Philosophy

8

Creating an Efficient and Sound Management System

10

Global Group Operation

12

Aiming for the Highest Quality, Which Makes Customers Say,
“Olympus, the choice that couldn’t be more right”

13

Incorporating the Customer’s Opinions into Products and Services

14

Having a Closer Rapport with Customers and Responding Fasterto What They Need

Respect for Human
Rights/Working
Environments with
Vitality

16

Respect for Human Rights and Compliancewith the Law

18

Creating Worthwhile Workplaces

Special Feature II

20

Environmental Management Practices at Olympus

In Harmony with
the Environment

22

Creation of Environmentally Conscious Products

26

Comprehending of Environmental Characteristic of Respective
Olympus Products

27

Training People to Create Environmentally Conscious Products

28

Purchasing and Procuring with Environmental View

30

Managing and Understanding Chemicals Used in Products andProduction Processes

31

Reducing the Environmental Loads of Packaging and Logistics
from the 3R Viewpoint

32

Preventing Global Warming

34

Reducing the Total Volume of Waste Discharged and Recovering
Resources

36

Formulating a Basic Environmental Plan toward an
Environmentally Advanced Company

38

Reinforcing of the Environmental Management System

40

Quantitative Appreciation of Influences of Business Activities andEnvironmental Preservation Activities

42

Contributing to Local, Regional, and International Societies

45

Promoting Information Disclosure and Interactive
Communication

48

Efforts by Domestic and Overseas Olympus Group

50

Third-Party Verification Report

51

History of Olympus’ Environmental Activities

Special Feature I

Sound Corporate
Activities

Customer-based
Conduct* Correlations with these guidelines are shown in the supplementary data pagesof our Web site.

• In 2004, we carried out a full review of existing data, which includes
a reexamination of past data, in pages 32, 34, 40, and 41. On page
32 (CO2 Emissions of Energy Systems), the CO2 converted factor(CO2 emissions per kWh) of purchased power, which changes year
by year because fuel used in generating power vary according tonation and year, is used in the CSR Report 2005 to show moreaccurate emissions data. (The 1999 factor was applied to all years
until last year.)

Main Scope of the CSR Report
Organizations covered by the report■ Pages 2–19 and 42–47:
Governance and Economy Report and Social Report
Olympus Corporation
Olympus Imaging Corp.
Olympus Medical Systems Corp.
■ Pages 20–41:
Environmental Report and environment-related data
The following plants of Olympus Corporation,
Olympus Imaging Corp., and Olympus Medical Systems Corp.
Technology Research Institutes (Hachioji)
Hinode Plant
Ina Plant
Tatsuno Plant
Affiliated Production Companies of Olympus Corporation, Olympus
Imaging Corp., and Olympus Medical Systems Corp.
Aomori Olympus Co., Ltd.
Aizu Olympus Co., Ltd.
Olympus Opto-Technology Co., Ltd.
• Head Office• Omachi Plant• Sakaki Plant
Mishima Olympus Co., Ltd.
Shirakawa Olympus Co., Ltd.
Okaya Olympus Co., Ltd.
* The philosophy and policies of the Olympus Group apply to consolidated
subsidiaries, excluding ITX Corp., but the schemes, policy plans, anddata used herein are only for the organizations mentioned above in themain scope of the CSR Report unless otherwise mentioned.
* If there is a difference in the scope of the report, the following note isgiven:
Information on
Group Companies : Information of companies other than that above
Pages 28, 32, 34, and 40–41: The scope of application is expanded, andthe scope is stated on each page from the viewpoint of the active
disclosure of information to stakeholders.

SocialInvolvement

Subject period: April 1, 2004, to March 31, 2005 (Fiscal Year 2004)

LegendIndicates Web sites where moredetailed information can be found;
specifically, refer to the supplementary pages of the Web sites indicated (http://www.olympus.co.jp/en/
corc/csr/wdata/)

Explanatory comments given at theend of sentences

Explains why the Company engaged
in certain activities
Information on
Group Companies

Group companies information:
Information on Group companies
outside the main scope of the CSR
ReportSpecial Feature I

What CSR
Olympus isworking on

Olympus Contributes to the Better Health and Happiness of all
the People in the World through the Company’s BusinessEndoscopes are indispensable to Olympus for today’s medical fronts. Olympus has maintained about 70% of theworld’s sale of digestive endoscopes for many years. In this fact lie the basics of the Company’s CSR: Olympus willrealize the sustainable growth of its business by contributing to society and fulfilling its social responsibility. Haruhito
Morishima, who became president of Olympus Medical Systems Corp. in April 2005, gave an interview on CSR in the
medical business (interviewer: Hiroyuki Otake; writer: Shoji Ozawa).

Olympus Technology Helps theAdvancement of Medicine

Special Feature I: What CSR Olympus is working on

Mr. Morishima recalls his first encounter with an endoscope withdeep regret when he lost his father.
“My father died of esophageal cancer when I was a college
sophomore. The attending physician told me that a new device
called an endoscope was recently introduced and that if it had
been used in his medical checkup, the cancer could have been
detected at an earlier stage and he could have been saved.”
At that time, Olympus had started marketing esophageal
endoscopes three years earlier. Mr. Morishima made up his mind
to engage in work that contributes to society and decided to join
Olympus.
“I joined Olympus, determined to be involved in endoscopes,
and I’ve been with it for 35 years. What a happy life I lead!”
The endoscope, which significantly promoted the advancement of diagnostic and treatment skills and techniques, is a great
contributor to the advancement of medicine, as evidenced by the

Haruhito Morishima

following comment that is often heard: if the person who invented
the endoscope is identified, he or she would win a Nobel Prize.
The endoscopic technology of Olympus has had a long history ofcontributions and advancements; Olympus has always been with
doctors who were active in the front lines of medicine since thedays of the gastro-camera. The world’s largest share in the field ofendoscopy was just a result of Olympus’ strenuous efforts.
“In Japan, the rate of stomach cancer deaths is declining, andI am certain that the endoscope is responsible for it to someextent.”
The widespread practice of endoscopy will help detect diseases much earlier, and endoscopy can help remove cancerous
cells then and there if detected at an early stage, making abdominal operations unnecessary. With the development of the image
diagnostic technique, doctors can find very small cancerous
growths, as small as about 1 mm in diameter, which was previously beyond detection.
“Endoscopes are now used for not only diagnosis but also surgical treatment. Take cholecystectomies in advanced countries,
for instance. More than 80% are done with an endoscope. It
reduces the burden placed on the patient and helps shorten thehospitalization period. It helps reduce medical cost.”
Endoscopes help reduce the rate of death as well as improve
the quality of life in patients.

President of Olympus
Medical Systems Corp.

Business Nurtured by Joint Efforts of R&D
and the Medical Front LineThe very start of Olympus’ endoscope business was a response toa doctor asking if it was possible to take a picture of the inside ofa stomach. Nobody believed it was possible back then.
With the viability of doing it as a business being questioned, Olympus remained serious in its commitment,
and that perseverance finally paid off, according to
Mr. Morishima.
“This field needs the joint efforts of the industry and academia. We are not medical doctors, so
we listen to what doctors have to say and returnwith proposals from our technical staff. Next,
the doctors give us their opinions and comments on how to improve our equipment,
which are then incorporated at our technological development or product improvement

4Active in Social Contributionsin and out of Japan
Manufacturing high-quality products is not the only field
Olympus is active in terms of social contribution. In 1990,
Olympus set up the Endoscopy Masters’ Forum, a world conference of front line medical doctors engaged in endoscopic treatment, to find and create new and advanced applications of endoscopes together with medical doctors. In addition, Olympus supports the World Gastroenterology Organization and World
Organization of Digestive Endoscopy as part of its social contributions. Through these two organizations, Olympus donates endoscopes to medical institutes in developing countries, provided thatthe recipient institute has an appropriate environment where the
donated endoscope can be properly used and their doctors canlearn to properly use it.
“You can only spread the use of endoscopes by training doctors how to use them. We therefore work together with organizations that support the development of doctors who are to become
leaders in the operation of endoscopes and teaching them how to
use the equipment.”
Moreover, Olympus is actively cooperating in launching campaigns in the United States and other countries, calling for endoscopic examinations to help the early detection of colon cancer.
In the area of the environment, Olympus aims at realizing
Zero emissions. To be specific, Olympus Medical Systems successfully reduced landfill waste after intermediate treatment tobelow 1% of total emissions at all its endoscope plants. In addition, the Environmentally Conscious Design Standard was createdto help produce Eco-products.
“For our environmental efforts, our idea is to set stringent criteria in the beginning and do our very best to match that criteria.”

Creating the Most Reliable Brand
Olympus never fails to forget the basics. Olympus regularly reeducates its employees so that they fully understand the importance of rapport with customers.
“The endoscope business is our pride. That is why every oneof us needs to be a better person. I want all our employees to try
harder to get the job done with a lot of ambition in order to create
the most reliable brand.”Mr. Morishima expects the joint work with doctors in surgery
and internal medicine to begin in the area of endoscopic treatmentin the future.
“I hope we can help them successfully combine their joint
efforts. Our strength is what we have achieved so far, including
comprehensive endoscopic technologies, by ensuring communication between developing staff and medical doctors. This is one of
the key factors that have made us a leader in the endoscope field.”Special Feature I: What CSR Olympus is working on

stage. This entire process is repeated,which helped both Olympus and the
medical people nurture mutual trust.
And now here we are.”
Olympus’ optical technology lives
in its endoscopic technology.
Olympus is committed to image quality.
“As an optical manufacturer,
Olympus aims at providing excellent
image quality, enough to ensure practical diagnosis. And that is the key tothe early detection of diseases.”Endoscopes are being used in a
wider range of applications, from
Endoscopic Video Information
diagnosis to treatment. Olympus
System “EVIS LUCERA”
develops new treatment tools jointlywith doctors.
“The primary social contributionof Olympus as the No. 1 endoscope manufacturer is the continuous manufacturing of products that have high levels of safety,
security, and medical economic efficiency. I believe our efforts tocontinue providing the medical front line with state-of-the-art
technology that matches their needs will eventually result in ourfulfillment of CSR.”

Gastrointestinal Videoscope

Olympus Corporate Social Responsibility Report 2005

5

Special Feature I

Olympus’ CSR
Philosophy

Olympus Fulfilling Its Social Responsibility Equates to
Olympus Strenuously Trying to Achieve its “Social IN”
Management Philosophy.
Olympus was created out of the desire of its founder to produce Japanese-made microscopes that can contribute to
the development of Japanese medicine. Our “Social IN” management philosophy, formulated in 1994, is our official
declaration to strive to realize better health and happiness for people by being integral members of society, sharing
common values, and proposing new values through our business. Our CSR is based on the principle of “Social IN.”

Management Philosophy and Corporate
Conduct Charter
Special Feature I: Olympus’ CSR Philosophy

Olympus bases its management philosophy on the concept of“Social IN.”
In September 2004, the Corporate Conduct Charter and theCode of Conduct were established for the Olympus Group to carryout its social responsibility while applying the above philosophy
to its daily activities. These are official statements that comprehensively regulate our attitude toward CSR, including environment-related policies.

We establish arelationship withsociety throughthe three “INs”

UN Global Compact
As announced in October 2004, Olympus participated in the UN
Global Compact because it needed to clearly state its determination to be an excellent global company, one that fulfills its social
responsibility, contributes to thesustainable growth of society, andaccelerates its efforts in CSR.
Now that the principles of the
Global Compact are incorporated
into our Corporate Conduct
Charter and Code of Conduct, we
can carry them out while conducting business. Interaction andmutual stimulation with other
Global Compact participants will
also help us improve our actions
toward social responsibility.
President Kikukawa’s statement
addressed to UN Secretary-General
Kofi Annan

Corporate Brand and CSR
We believe that the Olympus Group’s involvement in CSR will
nurture trust in and sympathy to the Olympus Group, reinforce thecorporate culture, and eventually help the Olympus brand enhance
its value. We also believe it will help the employees of the
Olympus Group realize the importance of working with one of theworld’s leading brands and of taking pride in the value of thebrand with appropriate action, ultimately reinforcing compliancewith CSR.

6

Management Philosophy of
the Olympus GroupOlympus Corporate Social Responsibility Report 2005

SocialInvolvement

Sharing
Social Values

Creating
New Values

UN Global Compact
This initiative was advocated by UN
Secretary-General Kofi Annan and officially launched at UN headquarters inJuly 2000. Participating corporations
from around the world are required tosupport and comply with 10 principles
in the areas of human rights, labor, theenvironment, and anticorruption.
Olympus is the 22nd company inJapan to participate in the Global
Compact.

* See the UN Global Compact Web pages for details of the Global Compact:
http://www.unglobalcompact.org/

Olympus Group
Corporate Conduct Charter
The Corporate Conduct Charter provides a CSR framework for the
Olympus Group to follow. Together
with the principles, the Olympus
Group Code of Conduct* is put inplace to guide all directors andemployees to act in compliance with
the Conduct Charter.
* The Olympus Group Code of Conduct can be found on
Olympus’ Web site.

Customers,
shareholders,
suppliers,
administration

Olympus Group
Involvementwith people
Employees,
customers,
suppliers

Involvement
in society(society and theenvironment)
The environment, local
community, internationalsociety, administration,
today’s and tomorrow’s
generations■ Corporate Conduct Charter and major
stakeholders

Olympus Environmental
Principles
In August 1992, being an excellent
corporate citizen, Olympus constitutedtheOlympus
Environmental
Principles to articulate its basic positions on environmental issues and to
set ambitious environmental protection goals, thereby leading to specificactivities. The Corporate Conduct
Charter states the fundamental ideasof the Environmental Principles in the“Harmony with the Environment”
chapter.

Based on the fundamental concept of Social-IN and being fully aware of its responsibilities
as a corporate member of society and as a company prized by people with various value
systems around the world, the Olympus Group continues to provide value for our society
in support of the livelihood and happiness of people all over the world. The Olympus
Group, with a strong sense of ethics, engages in global corporate activities while strictly
complying with relevant laws and regulations.

Policies for
Corporate Activities

Involvementwith People

Involvementin Society

1. Sound Corporate
Activities

3. Respect for Human
Rights

5. Harmony with theEnvironment

With highly transparent management, the Olympus
Group engages in soundand fair corporate activities
based on laws and ethics
through its relationship withall stakeholders, including
customers, suppliers, shareholders, employees, andlocal communities.

In all corporate activities,
the Olympus Group prohibits discrimination basedon race, faith, gender, age,social position, family lineage, nationality, ethnicity,religion, or disability as well
as forced labor and childlabor.

Respecting people’s safety
and health and the effects ofthe environment on theirlives, the Olympus Group
contributes to a healthy
environment and sustainable development throughbusiness activities and technological developments thatare in harmony with the natural environment and society.

2. Act on Behalf of
the Customer

4. Working Environments with Vitality

6. Good Relationshipwith the Community

The Olympus Group provides safe, high-quality
products and services thatare meaningful to society
and in tune with thedemands of customers
while taking sufficient measures to protect customer
information.

The Olympus Group provides safe and healthy
working environments torespect individuality and foster personal growth andoffers value sought by society as its employees strive
for skills and improve technologies.

The Olympus Group contributes to the development
and improvement of local
communities
through
respect for the cultures andcustoms of countries andregions in which it engages
in business activities.

Special Feature I: Olympus’ CSR Philosophy

Policies for
Corporate activities

Olympus Group Corporate Conduct Charter

Olympus Environmental Principles
Environmental
Protection
Declaration

Olympus, respecting nature and the health and safety of mankind, has
resolved through its technological development and through adopting
ecologically compatible business practices to contribute to the reestablishment of a healthy environment and a society in which asustainable development is possible.

Guideline forEnvironmental
ActionIn all business activities, Olympus will give priority to environmental
protection and will apply itself with dedication to this task both on anorganizational and individual basis.

1. Technology Development

4. Activity Support

We will develop products and production
technologies with a careful and conscientious regard for safety and environmental
protection. Furthermore, we will make theresults of such developments available toeverybody.

We will co-operate with environmental measures recommended by government bodies.
We will treat regional and international environmental protection activities with understanding and actively participate in and support them.

2. Drawing up Norms andAssessing Results

5. Education and Total Staff
Participation

We will take the initiative in setting up ourown standards and norms. We will assess
the environmental impact at each stage of
our operations from development through to
production and sales.

We will publicize and engage in other activities with the purpose of informing all Olympus
staff of the need for environmental protection.
We will encourage each and every staff member to increase his or her understanding ofenvironmental protection activities at home,
at work, and in the community.

3. Protection of Natural Resources

6. Structure to Promote Activities

We will make a united effort to conserve natural resources and save energy. At the sametime, we will push forward with recycling
activities, such as the retrieval of discarded
materials and the reuse of resources.

Under our director in charge of environmental protection, we will make clear our responsibility to promote environmental protection.
We will establish a structure through which
we can take appropriate measures to deal
with changes as they occur inside and outside Olympus.

Olympus Corporate Social Responsibility Report 2005

7

Sound Corporate Activities
A corporation needs to create added value through its economic activities in order to fulfill its
social responsibility. This chapter outlines the major corporate activities of Olympus; its
operational and management structure; its system of complying with laws, regulations, andethics; and its mechanism to appropriately check managerial decisions and corporate

Creating an Efficient and Sound Management System
Continuously providing value to all stakeholders, including shareholders, requires not only
the capability of swiftly developing strategies and putting them into action but also a peer
review mechanism to check the decisions and actions of management and employees.

Increasing operating efficiency by clarifying who
does what
Effective October 1, 2004, the in-house groups engaged in theimaging business and medical business at Olympus have become
two separate companies: Olympus Imaging Corp. and Olympus
Medical Systems Corp., respectively. Olympus Corporation
assumes the role of strategic planner for the entire Group, Head
Office, R&D, promotion of life science and industry-related businesses, and promotion of new businesses.
This reorganization intends to further clarify who does whatin business management to speed up decision making, establish aconsistent system that matches the characteristics of each business, and maximize corporate value.

■ Outline of the organization before and after the separation

Business Management System
Quick judgment and appropriate checking
Because the appropriate operation of the Olympus Group is more
important, an operating officer system was introduced in 2001,
and the Board of Directors, originally composed of 20 members,
was trimmed down. The Board of Directors is now positioned as asupervising organization to develop strategies and make decisions
in the Group’s global operation. Decision making is swiftly carried out by the Executive
Management Committee.
The Global Strategy Committee, which is in chargeof executing global strategies and evaluating perfor- Global Strategy Committee
mance, is the binder of
intragroup cooperation.

■ Corporate governance system

Olympus Corporation,

Organizations directly
under the president

Imaging systems
group

Corporate Center

Medical systems
group

Corporate R&D Center

Life sciencegroup

Industrial systems
group

Until September 30, 2004

Decision making
and audits

General Shareholders’ Meeting

operating company

Corporate
CenterLife science
group

100%
owned

100%
owned

Corporate R&D
CenterOlympus Medical
Systems Corp.,
medical business company
As from October 1, 2004

* The industrial systems group was disorganized in April
2005, and the business was taken over by the life sciencegroup and other organizations.

8

Olympus Corporate Social Responsibility Report 2005

AuditsAppointments

Board of Auditors

Reports

Two in-house auditors
Two outside auditors

12 directors

Accounting
auditorReports

Executive
Management
Committee
Business execution

Industrial
systems group*

Appointments

AuditsOlympus Corporation,

Organizations
directly under
the president

Board ofDirectors

Appointments
and supervision

operating holding company
Olympus Imaging Corp.,
imaging business company

Appointments

President

19 executive
officers

Appointments

Reports

Committees(Global Strategy Committee,
Human Resources Committee,
Risk Management Committee,
Information Security Committee,
Environment Committee, etc.)

Reports

Execution groups, includingGroup companies,
in-house companies, andHead Office departments

Internal Audit
Department
AuditsExchange of information

Sound Corporate Activities

Separating the Imaging Systems Businessand Medical Systems BusinessTo further clarify the missions and responsibilities of thedirectors and executive officers, their term of office is one year.
As of March 31, 2005, Olympus has 12 directors and 20 executive
managing officers (including 10 who also serve as directors). The
system of examining the management status is as follows: twoexternal auditors, who are among four auditors, are assigned toensure objective checking. The auditors, who are required toattend the Board of Directors meeting generally held twice amonth, examine the financial status of the entire business as anindependent organization that plays an important role in corporate
governance and regularly exchange information with the Internal
Audit Department.

Promoting Compliance

The Olympus Group has put in place the Olympus Group
Corporate Conduct Charter and the Olympus Group Code of
Conduct as guidelines for every director and employee to comply
with laws and regulations as well as a high level of ethics in carrying out fair and honest corporate activities.
In addition to a variety of in-house rules, the Olympus
International Standards (OIS), a set of our own Groupwide business criteria, have been established to guide the conduct of
employees.
A very high level of product and service quality and safety isrequired, considering our mission in the medical business of providing products directly related to human life. To meet such critical requirements, Olympus has implemented in-house regulations
and standards in fields related to the Pharmaceutical Law, and thePharmaceutical Affairs Division supervises and reinforces theCompany’s compliance with those codes.
Because we believe a transparent corporate culture withsmooth communication is the nesting ground for a high awarenessof compliance among employees, the president sends his message
to all employees through the intranet once a month, and the internal system is set up to allow any employee to directly send e-mailmessages to the president for his opinion. This is how we promotesmooth communication inside the Olympus Group.

Protecting Information
Special importance on the protection of private
information

Information Security Policy* (Abstract)• Olympus recognizes that all the information it handles and its
information systems (information assets) are a criticalmanagement resource. In the handling of information assets,
Olympus believes it is important to appropriately protect,manage, and utilize its information assets while strictly following
related laws and social norms.
• This Olympus Information Security Policy applies to all Olympus
Group companies globally.
• Olympus maintains information assets to efficiently andeffectively execute business operations. Employees arebasically restricted from using these information assets for nonbusiness purposes.
• Olympus appropriately manages confidential information related
to products and technological know-how, personal information
and all other secret information. This confidential information is
only disclosed on a need-to-know basis for business purposes.
In particular, personal information about customers is managed
under strict control to protect their privacy.
• Olympus has company rules that clearly address issues for
ensuring the secure management of information.
• Olympus provides its employees with education on information
security as needed.

Sound Corporate Activities

Developing an orderly set of regulations and creating atransparent and communication-friendly corporate culture

measures throughout the Group. The Olympus Private
Information Protection Policy was put in place in Japan to protect
private information.

* This policy is not applicable to listed companies that have a separate policy.

Risk Management System
Special committee, headed by the president,
supervises risk management
Corporations face a growing number of unexpected risks as aresult of their expanding economic activities and changes in thesocial system and people’s awareness. The president of Olympus
heads risk management activities in the Risk Management
Committee, which stipulates risk management rules for the integrated management and control of risk information from an overall point of view to prevent and quickly eliminate risks.

■ Olympus Risk Management System

Task force

President
Risk Management Leader

The safe maintenance and management of information assets,
including private and corporate information, are never more
important with the advancement and diffusion of information
technology. Olympus takes precautions and measures to prevent
information from leaking and ensure the unfailing management of
information assets provided by customers and suppliers as well as
its own information assets according to the Olympus Information
Security Policy. The Information Security Committee, headed by
one of the directors, studies, reviews, and implements preventive

Risk Management
Committee
Chairman: President

Risk managers ofGroup companies,
in-house companies, andHead Office departments

Risk Management
BureauExecution groups, includingGroup companies,
in-house companies, andHead Office departments

Olympus Corporate Social Responsibility Report 2005

9

Global Group Operation
Under the stewardship of the operating holding company, Olympus Corporation,
the Olympus Group carries out its international operation in various fields so as toprovide added value to many people.

Overview of the Three Mainstays of the Group

Outline of the Olympus Group(As of March 31, 2005)

Three Core Corporations and the ITX GroupOlympus Corporation
Established

October 12, 1919

Head Office

Shinjuku Monolith, 3-1 Nishi-Shinjuku 2-chome,
Shinjuku-ku, Tokyo 163-0914, Japan

Business Lines

Manufacture and sale of precision machinery andinstruments

Capital¥40,832 million

Total number of employees (consolidated)

30,312

Number of employees (Olympus Corporation only)

2,845

Consolidated net sales¥813,538 million

Net sales¥258,953 million

Consolidated total assets¥858,083 million (including ¥240,837
million in equity capital)■ Group Organization Map

100%

Olympus Imaging Corp.

Four affiliates and
103 subsidiaries

100%

Olympus Corporation,a listed company

Olympus Group (excluding ITX)

Olympus Imaging Corp.

Olympus GroupSound Corporate Activities

The three mainstays of the Olympus Group are Olympus
Corporation (operating holding company), Olympus Imaging
Corp. (imaging business), and Olympus Medical Systems Corp.
(medical business), with some 110 affiliates and subsidiaries.
Olympus Corporation acquired a major stake in ITX Corp., a listed corporation with approximately 60 affiliated companies, andincluded it as a consolidated company in October 2004. The
Olympus Group is therefore a combination of Olympus Group
companies and ITX Group companies.

Olympus Medical
Systems Corp.

Established

October 1, 2004

Head Office

Shinjuku Monolith, 3-1 Nishi-Shinjuku 2-chome,
Shinjuku-ku, Tokyo 163-0914, Japan

Business Lines

Manufacture and sale of digital cameras, film cameras,
and voice recorders.

Capital¥1,000 million

Number of employees
Net sales

1,022¥113,724 million

Olympus Medical Systems Corp.

ITX Group

67.60% (including 5.82% indirectly owned)

ITX Corp.,
a listed company

46 subsidiaries and
12 affiliates

Established

April 27, 2004

Head Office

Shinjuku Monolith, 3-1 Nishi-Shinjuku 2-chome,
Shinjuku-ku, Tokyo 163-0914, Japan

Business Lines

Manufacture and sale of medical endoscopes andother medical devices

Capital¥1,000 million

Number of employees* The percentages shown here are those of the ownership of voting rights.

The CSR Report mainly covers Olympus Corporation,
Olympus Imaging Corp., and Olympus Medical Systems Corp.
and mentions other affiliated companies, except for ITX Group
companies, whenever necessary. ITX Corp., which is a listedcompany, and its group companies are not included in this report
unless especially necessary. Details on this are given on page 3.

Net sales

1,755¥66,033 million(Reference) ITX Corp.
EstablishedMay 16, 1986

Head Office

3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6014,
Japan

Business Lines

Investment and business incubation, equipment sales
and service provision in the IT field

Capital¥20,456 million

Total number of employees (consolidated)
Consolidated net sales

1,848¥349,699 million

Consolidated net sales include the sales of ITX in the second half of 2004.
The net sales of Olympus Imaging and Olympus Medical Systems are those
only in the second half of the year. Sales in the first half of the year are
included under the single net sales of Olympus Corporation.

10

Olympus Corporate Social Responsibility Report 2005

Main Business Bases

Major Data on Olympus Group

Production and Sales Bases around the World

Changes in Performance and Number of Employees

The data shown here are as of March 31, 2005. The updated data
and details are shown on our Web site.
Japan■ Consolidated net sales and number of employees(millions of yen)
800,000

Net sales

813,538

600,000

633,622500,000

40,000466,704

300,000

30,312200,000
100,000

19,86520,705'00'01

Supervising subsidiaries
Olympus Europa GmbH (Germany)
KeyMed (Medical & Industrial Equipment) Ltd. (U.K.)
Local companies and subsidiaries inAustria, Croatia, the Czech Republic, Denmark, Estonia, Finland, France,
Germany, Hungary, Italy, the Netherlands, Norway, Poland, Portugal,
Slovenia, Spain, Sweden, Switzerland, and United Kingdom
Major manufacturing plants (subsidiaries)
Olympus BioSystems GmbH (Germany)
Olympus Winter & Ibe GmbH (Germany)
KeyMed (Medical & Industrial Equipment) Ltd. (U.K.)
Algram Group Ltd. (U.K.)
Olympus Diagnostica GmbH (Ireland)

28,857

24,12630,00020,00010,00000(fiscal year)

'02

'03

'04

■ Consolidated operating income and net income/loss(millions of yen)
60,000Operating income

Net income/loss

62,99762,34650,00040,00030,00042,28335,49633,56420,000Europe60,00050,000564,343

528,415400,000(People)80,000No. of employees

Sound Corporate Activities

Locations of main offices and plants
Shinjuku-ku and Shibuya-ku, Tokyo (Head Office)Hachioji-shi, Tokyo (Technology Research Institutes)
Ina-shi, Nagano Prefecture (development and manufacture)
Tatsuno-machi, Kamiina-gun, Nagano Prefecture (development andmanufacture)
Hinode-cho, Nishitama-gun, Tokyo (development and manufacture)
Okaya-shi, Nagano Prefecture (development and manufacture)
Sales bases
Sapporo, Sendai, Omiya, Yokohama, Niigata, Matsumoto, Shizuoka,
Tsukuba, Nagoya, Osaka, Kanazawa, Kyoto, Matsuyama, Hiroshima,
Fukuoka, and Minamikyushu
Main manufacturing subsidiaries
Olympus Opto-Technology Co., Ltd.
Head Office (Tatsuno-machi, Nagano Prefecture), Omachi Plant, andSakaki Plant
Aizu Olympus Co., Ltd.
Shirakawa Olympus Co., Ltd.
Aomori Olympus Co., Ltd.
Mishima Olympus Co., Ltd.
Okaya Olympus Co., Ltd.

Net sales in fiscal 2004 exceeded those in the previous year, but
operating income decreased from that in the previous year due toincreased competition in digital cameras. In addition, the write-offof the deferred tax asset was required. Therefore, fiscal 2004
recorded a loss. Please see Investor Relations on our Web site.

24,34823,153

10,0000(fiscal year)

11,787

10,279'00'01-11,827'02■ Consolidated net sales ratio in
fiscal 2004 by fieldAsia(excluding Japan)

Others 3.0%

11.5%

20.1%

Japan 30.8%

Imaging 34.1%
Industry 6.1%
Life science'04■ Consolidated net sales ratioin fiscal 2004 by area

Others 1.7%

Information
communication'03

Europe 29.9%

9.7%
North America

Medical 28.3%

24.8%* The above consolidated net sales include the sales of ITX Corp. for the second half of the year.

AmericasSupervising subsidiaries
Olympus America Inc. (USA)
Offices (subsidiaries) in
United States, Mexico, and Brazil
Asia and other regions
Major manufacturing plants (subsidiaries) in
Australia, China, Hong Kong, Malaysia, New Zealand, Singapore,
South Korea, Taiwan, and Thailand
Major manufacturing plants (subsidiaries)
Olympus (Beijing) Industry & Technology Ltd. (Beijing, Pan Yu)
Olympus (Shenzhen) Industrial Ltd. (Shenzhen)
Olympus (Guangzhou) Industrial Ltd. (Guangzhou)
Olympus Optical Technology Philippines, Inc. (Cebu)

Medical field

Imaging field

Industrial field

Life science field

Olympus Corporate Social Responsibility Report 2005

11

Customer-based Conduct
Olympus’ “Social IN” management philosophy addresses the principle of customer-based
conduct. Our creed is that our corporate activities can create value and reward shareholders
and other stakeholders only when they are of service to customers and meet their satisfactionin the form of products and services.

Aiming for the Highest Quality, Which Makes Customers Say“Olympus, the choice that couldn’t be more right”
Any lapse in the quality control system will end up hurting the customer.
A successful manufacturer would never take it for granted that their products andCustomer-based Conduct

services automatically provide customers with a sense of security and win their trust.

Quality Philosophy and Quality Policies

Quality Inspection by Top Management

How to Get the Highest Quality

Top management takes the initiative in ensuring
quality awareness.

The quality philosophies of Olympus are that “the total quality
achieved must be the highest in the world” and “provide products
and services that are of the highest quality.” To achieve these, we
set up essential measures every year based on medium- and longterm plans, and all-out efforts are made throughout the Olympus
Group to carry them out as our quality policies.

Quality Philosophy
1. Realization of genuinely world-class “Total Quality” inall aspects of the organization.
2. Provision of the highest quality products and services
to customers.

At Olympus, top management is personally involved in checking
quality to promote constant quality improvements. They carry out
periodic inspections to see that set standards and criteria are being
strictly followed and appropriate quality management is being
conducted. They give instructions
to correct any deficiencies found in
the inspection so that constantimprovements are smoothly made.
This approach was introduced not
only in Japan but also at overseas
offices.

[Core Principles](1) All actions to reflect a customer-oriented approach.
(2) Develop “Win-Win” relationships with all partners.
(3) Be disciplined in following the appropriate procedures
and, in day-to-day operations, continuously strive for
improvement, avoiding complacency.

Quality Organization
Quality assurance staff watches over the entire Group
Committed to ensuring the safety of use, Olympus has set up an
optimal quality assurance system for each field of business toguarantee the highest quality for its products and services at any
stage. At the same time, our cross-disciplinary and cross-divisional All-House Quality Assurance Division checks and evaluates
quality management activities and provides the results of its evaluation to the president.

12

Olympus Corporate Social Responsibility Report 2005

Quality inspection by top
management

Quality Education
Quality education is provided to the development staff.
Many quality problems are said to result from at the development
stage. Every year, Olympus holds more than 100 lectures on quality given by in-house and outside instructors to provide quality
education to development staff.
Because November is designated as
Quality Month, we hold symposiums on quality
and standardization for all sectors to ensure that
our employees are thoroughly aware of quality
and the customer-based principle. All employees are given a copy of Customer-based
Conduct, a CSR handbook, to show them how Customer-based
Conduct, a CSR
they should think and act to improve customer handbook
satisfaction.

Incorporating the Customer’s Opinion into Products and Services
You created a quality product using excellent technology, but it is the customer who
actually uses it and decides whether it has any real value.
At Olympus, the customer’s opinion is always incorporated into the making of products.

Product Development System

Quality Checks in the Development Stage

Incorporating the customer’s opinion into productsInternationally certified quality check system
Olympus has set up a fully established quality check system thatis internationally certified. In July 2004, Olympus set up the Testand Evaluation Center, which has a 10-m radio wave anechoic
chamber certified by NVLAP (U.S.A.) and TNO (theNetherlands) and other pieces of measuring equipment, and develops and trains qualified evaluation engineers. We will further
improve our quality check system, which allows us to make accurate evaluations of the advancement of our products and provide
our customers with a sense of security and safety with respect toour products and services.

10-m radio wave anechoic chamber in
the Test and Evaluation Center

Customer-based Conduct

Olympus uses a consistent business operation system that covers
everything from development to production, sale, and service,depending on the business’ characteristics.
In the medical business, we communicate closely with users
in the medical field who actually use our products and services as
early as the planning stage, learn from them the medical worthiness of our products and how easy they are to use, and use theknowledge we gain to refine our products. Likewise, in the life
science and industrial fields, we always carry out product development while in constant contact with customers.
In the consumer-related business, including cameras, we highly value the frank opinions and comments our customers give to
the Customer Support Center or Olympus Plaza (showroom).
Those opinions and comments as well as the information obtained
from marketing surveys are used as feedback in product planning.
We always try to respond to requests from customers concerning the products they actually use as quickly as possible
through a consistent business operation system.

Quality Inspection Analysis Room

Promoting Ease of Use
Creating customer-friendly products

Staff engaged in a product planning meeting

Ergonomics has long been a basic concept in our designs in product development. Usability evaluations and universal designs areamong the major indexes in our approach to producing easy-touse products. As part of our efforts to achieve greater customer
satisfaction in this aspect, the Monitor Room, which was set up in
July 2004, can be used by customers to actually use products sothat we can discover any carelessness or shortcomings, such as thelikeliness of using the product incorrectly or difficulties in using
the product, and help ourselves improve products and instruction
manuals.

Staff checking usability in the Monitor Room

Olympus Corporate Social Responsibility Report 2005

13

Having a Closer Rapport with Customers and Responding Faster toWhat They Need
Creating excellent products, quickly responding to customers’ requests and inquiries,
and repairing products in case of failure are essential for us to satisfy customers andprovide them with value.

Olympus Customer Support System
Global Support System with Local Corporations
and Distributors

Customer-based Conduct

Olympus appropriately responds to customers according to thenature of the product, such as digital cameras, microscopes, orendoscopes, and that is indispensable in effectively coping withcustomer needs. Be it in Japan, America, or Europe, Olympus’
local corporations know how to cope with customers in after-saleservice, i.e., the repair or maintenance of the Olympus products
they bought and use, depending on the field of business. The support system is also available in other areas through local distributors. Our Websites provide information on how and where to contact us, depending on the product, by area. This CSR Report mainly focuses on the support system of Japan.

Customer Support Center (imaging field)

Customer Response Systemin the B-to-B Field
Customer Information Center for endoscopes andmicroscopes
In the endoscope and microscope business, customers (medical
institutes, research institutes, or corporations) are usually dealt
with through their representatives. However, the Customer
Information Center is ready to directly receive inquiries from such
regular customers as well to provide better satisfaction.
Microscope Customer Information Center

The Microscope Customer Information Center, established in
1999, answers approximately 17,000 inquiries every year from
customers, including those transferred from sales offices.
Recently, the center has a growing number of inquiries concerning digital photography using microscopes, and the staff at thecenter is trained to properly handle such inquiries.

Support is also available on Saturdays and Sundays
Endoscope Customer Information Center

In Japan, the Olympus Customer Support Center answers questions, inquiries, and requests from customers over the phone on
weekdays as well as Saturdays and Sundays concerning Olympus
products, including digital cameras, film cameras, voice recorders,and MO drives.
We take various measures to reduce the waiting time of customers calling the Support Center by, for instance, improving thereception system through appropriate waiting time management orproviding Web site readers with data on which days of the week
and time of day are busy.

Staff answering a telephone inquiry at the Customer
Support Center

14

Olympus Corporate Social Responsibility Report 2005

The Endoscope Customer Information Center answers a lot of
inquiries, which has grown at a rate of 40% to 50% every year
since the center opened in 1999. The center receives up to about
50,000 inquiries a year, including those transferred from sales
staff.
These inquiries help us improve our endoscope products andservices.
The staff is also available to answer phone inquiries on endoscope equipment problems and relay the information to field service staff or sales staff deployed to various parts of the country toensure swift solutions to those problems, including repair andmaintenance services, at medical facilities.
Thus, we keep our customer response system always in operation to provide a greater sense of security to customers.

Repair System

Olympus Techno Lab

In Times of NeedBusiness-to-Business Mobile Showroom
in the United States, Olympus OnSiteTM

Information on
Group Companies

Olympus OnSite is a customized 53-ft. trailer that is swiftly morphed into a 105 ft. × 45 ft. mobile showroom. Launched in
October 2004, Olympus OnSite brings innovative Olympus technology directly to healthcare professionals. The showroom houses
a complete ALPHA O.R. surgical suite as well as medical endoscopes, microscopes, and diagnostic equipment. Because every
visitor is also a consumer, a sampling of Olympus consumer electronic products is available on board as well. Now, busy healthcare professionals can make informed purchasing decisions andlearn how to use the latest Olympus medical technology at a location near their own hospital or institution. And that benefits theentire community.

Customer-based Conduct

Olympus strives to constantly improve quality, which, however,does not guarantee a zero failure rate. This is why we set up an
optimum repair response system for customers. In Japan, theRepair Service Center at Okaya serves as the main repair plant for
cameras and digital cameras to ensure a quick response to equipment failure and breakdowns and reduce cost. In addition to conventional repair services through retail and service shops, theRepair Item Pick-up Service was opened to provide greater convenience in troubleshooting products. The staff, after receiving a callfrom equipment users whose Olympus products are broken, visits
them to pack, pick-up, and ■ Percentage of repairs completed
within allotted timedeliver the items to thedesignated service center.
(%)
Digital camera
Film camera
Users of this service can 100
90
also check the progress of80
the repair over the70
Internet, reducing the irri60
50
tation that stems from40
waiting.
A repair system that
'02
'03
'04
optimizes the time and * When a product breaks, the user calls the Repair
Service Center and sends the product in for repair.
cost of the repair service,
When the repair is completed, the product is returnedto the user. The percentage of repairs completeddepending on the area andwithin the allotted time is increasing.
product, is also available
overseas. In Europe, forinstance, repair centers arelocated in Portugal and theCzech Republic for the
repair of cameras.

Olympus Techno Lab, located in Tokyo and Osaka, is a facility
where business meetings with customers can be conducted onsuch topics as microscopes, products related to genetics, proteinsand cells, and industrial endoscopes as well as demonstrations andtraining given on those products.
Each lab offers six microscope training classes to beginners
and provides individual
consultation on generalmatters concerning microscopes.
Small-group classes
that offer practical exercises are well-received by
students and have a good
reputation.
Olympus Techno Lab

Okaya Repair Service Center

Showroom
Direct Exchange of Experience and Notes with
Customers

Appearance of the Olympus OnSite

Olympus Plaza

Olympus Plaza, located in Tokyo and Osaka, is where we canexchange information with customers in the field of informationand imaging. Once you arrive at Olympus Plaza, you can see upto-the-minute products on display, experience applications of digital images that are useful in our daily lives at the Digital Solution
Experience Corner, and take lessons at a mini-digital workshop to
improve your skill inusing digital cameras.
Olympus Plaza supports
customers by teachingthem how to use andexpress themselves withimage equipment.

Visitors inside the Olympus OnSite

Olympus Plaza

Olympus Corporate Social Responsibility Report 2005

15

Respect for Human Rights/Working
Environments with Vitality
Olympus believes that the most important element that produces a value-creating corporation is humanresources. We also believe that human resources are best utilized when the human rights of every
employee are protected, a good working environment where every employee can perform his or her bestfor self-realization is in place, and a personnel system and an employee development system in which
the development of special skills is encouraged and a merit-based evaluation is promoted are in place.

Respect for Human Rights and Compliance with the Law

Respect for Human Rights/Working Environments with Vitality

Human rights need to be respected in corporate activities, which is a common
understanding in modern society. However, it is still possible that human rights could beviolated inside the Group without ever being noticed. To prevent such a situation fromhappening or to improve any environment in which it is likely to arise, respect for humanrights needs to be officially stated as a part of corporate policy together with a workablesystem of carrying out measures to prevent the violation of human rights and promoterespect towards others.

Human Rights and Labour Policy and the
Global Compact

Actions for the Prevention, Early
Detection, and Resolution of Problems

Respect for human rights officially stated as one of ourbasic principles

Creating an energetic, rule-abiding workplace
Workplace Management Handbook

For years, Olympus has been actively engaged in creating aworking environment where every employee can perform his or
her best through respecting human rights, a varied sense of values,
and individual personalities in order to fully develop humanresources and an organization that have vitality—our guiding
principle for personnel management—based on the Social IN
management philosophy. In October 2004, Olympus participatedin the UN Global Compact by officially stating its determination
to support and implement the 10 universal principles in four areas,
including human rights and labor. In March 2005, the new
Olympus Human Rights and Labour Policy was formulated forgroupwide application to send a strong message of respect forhuman rights to all employees in the Group.

Olympus gives a copy of the Workplace Management Handbook
to each employee in a managerial position, and he or she is obliged to undergo manager training. The comprehensive guidebook
imparts know-how and guidelines on how to make the most ofeach and every employee’s ability and have the organization function at its optimum. In addition, the book contains basic rules onlabor management, including time management and obligations toensure employee safety—both of which are in line with the labor
law—as well as considerations to the mental health of employees.
The Sexual Harassment Guidebook is also published and disclosed over the in-house intranet so that all employees will know
how to handle it.

■ Organization of personnel and labor issues

President
Human Resources
Committee

Workplace Management Handbook
Director in charge of
personnel and labor issues*
Human Resources
Subcommittee
Personnel Department

Plant manager

Plant manager

Plant manager

Plant manager

Managers of business divisions, such as subsidiaries and in-house companies* Personnel and labor issues are supervised by a director, with the president being the highest person
responsible. If two or more subsidiaries and in-house companies exist in the same plant, a plant
manager is assigned to each plant so that policies and measures concerning personnel and labor
issues can be thoroughly conveyed and implemented.

16

Olympus Corporate Social Responsibility Report 2005

Employee Complaint Procedure

As part of the Employee Complaint Procedure, a consultation service has been set up in which women answer the complaints offemale employees who have been sexually harassed. The consultants keep any information disclosed by harassed employees
strictly confidential (such information is disclosed to no one without consent, not even the manager of the employee filing the complaint) and take appropriate action to solve the problem.
Consultants that deal with other labor problems are also available.
If the matter cannot be resolved between the parties directly
involved, it will be reviewed by a committee formed by representatives from the company and employees to either find a solution
or eliminate the problem.

Employment of the Physically Challenged

Diversity and Opportunity
Utilizing diverse human resources according toindividual abilities
Equal employment opportunities for both sexes

At Olympus, there are no restrictions in deciding who toemploy—whether for entry-level or midlevel positions—whosesalary to raise, or who to promote. We are always happy to
employ and make use of unique human resources: people who arecapable in specialty fields, have appropriate work ethics, andthink in terms of an independent professional.

(%)

80 27

100

20

37

24

23

60
40

73

80

63

76

77

80 25

27

16

22

10

75

73

84

78

FY '00'01
23
61'02 '03 '04
36
52
24 (People)
193 186 209(People)

90

20

0

'00
Women 50
Men 134

40

0

'01
23
91

'02
53
90

'03 '0442
52 (People)
133 175(People)

Women 8Men

Former retiree working again under the
reemployment system

(%)

60

20

FY

■ Employment for midlevel
positions: Percentage of men
and women

Olympus employees who reachthe age of 60, the official retirement age at Olympus, but wish
to continue working and whose
workplace needs them areallowed to work under the
reemployment system. In 2004,
15 retirees were reemployed.

24

Employment of Foreigners

The skilled human resources we employ include foreign nationals.
Many local corporations are headed by locals. Olympus Imaging
Corp., one of the core companies of the Olympus Group, has two
foreign directors out of nine in total, while Olympus Medical
Systems Corp. has three foreign directors out of eight in total (asof the end of March 2005).
Employees of Local Corporations Overseas

Information on
Group Companies

KeyMed (Medical & Industrial Equipment) Ltd. was chosen by The
Sunday Times for two consecutive years as one of the 100 Best
Companies to Work For in the United Kingdom. Olympus Europa
GmbH, in Germany, was ranked 20th in the country based on an
employee evaluation and No. 1 in Hamburg. Also, Olympus
America Inc. compares favorably in various categories to companies chosen by Fortune as one of the 100 best places to work
based on an employee evaluation. Local corporations of Olympus
have excellent evaluations. The key is management by local leaders who respect local social and cultural ideas based on the Social
IN management principle.

Olympus Human Rights and Labour Policy* (abstract)• Olympus supports and respects the Universal Declaration of
Human Rights, adopted by the United Nations in 1948, and iscommitted to respecting its employees’ human rights as well as
expects the protection of human rights by its business partners.
• The Olympus Human Rights and Labour Policy applies to all
Olympus Group companies globally.
• Olympus respects the diversity, character, and human rights ofeach employee; provides employees with opportunities to fulfill
their potential, develop their capabilities, and maximize theirvalue; and strives to maintain a safe and healthy working
environment.

Respect for Human Rights/Working Environments with Vitality

Sachiko Karaki, the current manager of fundamental technology at Corporate R&D Center,
was elected Woman of the Year 2004 by Nikkei
Woman magazine. She was awarded the prize
for her great achievement as a leading
researcher, mother, and wife.

100* The number and percentage of physically challenged employees are the combined data of Olympus
Corporation., Olympus Imaging Corp., and Olympus Medical Systems Corp. as of the end of March
2005.

Reemployment System
for Retirees

Woman of the Year 2004

■ Employment for entry-level
positions: Percentage of men
and women

At Olympus, there are 75 physically challenged employees who
are a part of the workforce in various trades. The percentage of
employees who are physically challenged is 1.18%, which is,unfortunately, under the statutory level of 1.8%. Therefore,
Olympus is determined to make its workplace more accessible tothe physically challenged and create more opportunities for themto show what they can do in order to raise their employment to thestatutory level.

• Olympus supports and respects the protection of internationallyproclaimed human rights within the sphere of its influence andensures that it is not complicit in human rights abuses.
• Olympus ensures that it will not use any forced or bonded
labour in the production of Olympus products or services.
• Olympus complies with local minimum age laws andrequirements and does not employ child labour• Olympus strives to eliminate discrimination based on gender,
race, nationality, ethnicity, religion, disability, etc., that are
unrelated to the job performance required for the businessinterests of Olympus.
• Olympus respects the rights of workers to organize in labour
unions in accordance with local laws and established practice.
* This policy is not applicable to listed companies that have a separate policy.

Olympus Corporate Social Responsibility Report 2005

17

Creating Worthwhile Workplaces
Employees are assets entrusted by society to a company, and a company’s social
responsibility is to promote the capabilities of those employees and help them fully
demonstrate their capabilities and lead a full life both at home and at work.

Evaluation System

Capability Development System

Fair and reasonable treatment

Education and Training

Respect for Human Rights/Working Environments with Vitality

The personnel system of Olympus is designed to bring about individual respect and independence, high specialty capability andmorale, and the promotion of merit- and performance-based treatment.
Employees will be evaluated on their level of achievement ascompared to the originally set target, and the evaluation will bereflected in their salary and bonus. Evaluations and the setting oftargets will be done based on statements made by each employee.
Managers should give each employee a detailed explanation of hisor her target and evaluation in one-on-one meetings. The total
amount of bonuses to be given to employees varies according to
the performance of the company because of the company’s basic
policy that states that the company’s income stems from the contribution of all employees.

Challenge System

Olympus College

Olympus College, an in-house education system, provides
employees with many opportunities to enhance their knowledge
and skills in specialty areas by holding lectures and workshops on
business, engineering, and technology. Employees are allowed tofile an application, provided they consulted with their superiors inadvance.
■ Changes in the approximate
number of trainees
FY2002

FY2003

FY2004

2,800

4,100

4,500

■ Samples of popular themes
Practical marketing strategy
Career design seminar
Fundamental course in mold parts
designISO 9000 auditor course
Introductory and beginner’s course in
Visual Basic

Advanced Technician/Engineer Encouragement System

In-house job placement schemes
Olympus introduced two types of in-house job placement schemesin 1990 and 2001. The former, or Type A, allows a department tolook for the human resources it needs from within the company,
and any employee can apply for it without the approval of his or
her superior. If the employee passes the interview, he or she canmove to the new department. The latter, or Type B, allows an
employee to look for a more suitable job within the company forone year with the approval of his or her superior. These two
schemes are collectively called the Challenge System. This system aims at promoting the more effective use of in-house humanresources and providing individual employees with opportunities
to think about their careers, explore new roads, and develop an
independent professional mind-set.

Olympus has set up an advanced technician/engineer encouragement system to ensure improvements in and the inheritance of thetechnical and practical skills of its technicians and engineers. The
level of individual employees is generally evaluated based on theTechnical Level Evaluation Table. Employees, once judged qualified, will be awarded the special title of Advanced
Technician/Engineer and given bonus. As of March 2005, 92
qualified technicians/engineers are at work.

Advanced technician/engineer certificate

Internship■ Type-A scheme: Data for the past
five years
No. ofNo. ofjob titles applicants18■ Type-B scheme: Data for the past
three years

No. ofemployees
reassigned

No. ofemployees registeredfor job placement

No. ofemployees
reassigned

2000

41

47

20

2002

32

16

2001

43

36

22

2003

29

7

2002

69

46

22

2004

17

4

June 2003

83

28

15

Dec. 2003

92

37

16

2004

109

45

28

Olympus Corporate Social Responsibility Report 2005

Mutual communication between students andcorporation

We introduced an internship system in FY2002 to provide students with an opportunity to know our working environment.
Students actually work at Olympus, and, according to their comments, the system helps them prepare and be more aware of thebusiness world they are entering.
In FY2004, we had more than 200 applicants, 33 of whichwere accepted by the R&D departments.

Work Arrangement and Welfare Systems
Supporting both the working and private lives of
employees

Childcare and Family Care Support System

Olympus respects the Childcare and Family Care Leave Law. The
childcare and family care support system offered by Olympus provides more benefits than prescribed by statute.

Welfare Cafeteria Plan

Family care

Reduction in
working hours

Up to March 31 of the year the child enters elementary school

Leave for nursingcare

5 days (paid) per year until March 31 of the year the childenters elementary school

Leave of absence

Up to one year per person in need of care per condition
1 person used the system in FY2004

Reduction in
working hours■ Paid holidays and seminars
7th year of
Paid holidays: 5 days
employment
20th year of
Paid holidays: 10 days
employment
55 years ofage

Paid holidays: 5 days
Participation in the
PLP Seminar

Participants enjoying a PLP Seminar

Annual Paid Holidays

Employees apply for paid holidays and receive permission
through an intranet-based procedure. The management should
keep a good workload balance and always consider the workforce
available when granting leave to applicants so that employees willfind it easier to take leave without causing an excessive load to beplaced on certain employees.
No. of annual paid holidays(for full-time workers)

20 days a year, starting the first year of employment
Unused paid holidays can be carried over to the next year
only.

Consecutive leavepromotion scheme(“Creative Holiday”)

5 consecutive holiday leave is promoted (with ordinary consecutive holidays in between possible)

Expired annual paid
holiday saving scheme(“Special Sick Leave”)

Saving of up to 50 days allowed for medical treatments andfamily care (paid holidays)

Up to one year per person in need of care per condition

Exemption from overtime
and midnight work

As prescribed by statuteVolunteer Leave

This system allows Olympus employees to join volunteer
programs, such as the Japan Overseas Cooperation Volunteers.
Employees who use this system are fully entitled to resume thejob they held before taking leave.
Purpose:Leave for participation in social contribution programs typicallyheld or organized by international organizations, the Japanese
government, local governments, or social welfare corporations

Period:Longer than one month but shorter than two years

No. of employees who
used this systemNo employees in FY2004, 3 employees in total since FY1995“Refresh Plan” and PLP Seminar

The “Refresh Plan” was introduced to help long-time employees
have a renewed look at what they have achieved and what they
can do in the future in their time remaining with the company.
The Age 55 Pension Life Plan (PLP) Seminar is for employees
nearing retirement age to plan how they are going to live after
retirement. Employees, together with their wives or husbands, canjoin the seminar, which is held, for instance, at a hot spring, tolearn about and plan for life after retirement from three viewpoints: money, objectives, and health.

Within one year, up to the child’s second birthday (may be
extended for an additional six months in special cases)
36 employees used this system in FY2004.

Occupational Safety and Health
Effort to eliminate occupational accidents
Occupational safety and prevention of occupational
accidents

Olympus and the labor union of every Olympus plant form an
Occupational Safety and
Health Committee, which
carries out various programs to eliminate occupational hazards and accidents and ensure a safe
working environment,
including traffic safety
guidance and periodic safe- Occupational Safety and Health Committee
ty patrols.

Respect for Human Rights/Working Environments with Vitality

Employees, who are given a certain number of “welfare points,”
are entitled to make choices among the predetermined welfare
schemes. This system was introduced to fulfill the diversifying
needs of employees. The unit price per point is doubled for certain
activities that require employees to have social support or promote
employees’ self-education, such as learning a language, caring for
elderly parents, or raising children.

Childcare

Leave of absence

Olympus believes that it is important for its employees to actively
work toward their higher targets as well as in living a full life insociety and at home and has established a variety of work arrangement and welfare systems through negotiations with employees
and their labor union. Some of the major arrangements are as follows:■ No. of occupational accidents
FY1999FY2000FY2001

FY2002

FY2003

FY2004

No. of accidents

Item

20

22

20

20

39

32

No. of accidents thatshut down work
No. of accidents that
required no shut-down
No. of shut-down
days

5

9

7

8

7

3

15

13

13

12

32

29

25

238

163

41

149

36.5

Physical and Mental Health Consultation

An external health consultation service is provided to offer
employees free consultation on health, caring, etc., over thephone. A consultation service for mental health, in cooperation
with an external medical facility, is also available to employees.

Olympus Corporate Social Responsibility Report 2005

19

Special Feature II

Environmental
management
practicesat Olympus

Olympus’ Digital Cameras Also Rank High in Environmental
Performance.
Olympus is one of the leading manufacturers of digital cameras. In FY2004, the world digital camera market becamehuge, with 72 million cameras sold. Masaharu Okubo, who became president of Olympus Imaging Corp. in April 2005,
has been playing a vigorous part in a wide range of areas—not only in fields ranging from microscopes throughanalyzers and industrial endoscopes to printers but also as the director of the Corporate Center. We have heard fromPresident Okubo on Olympus’ social contributions through their digital imaging business.

Special Feature II: Environmental management practices at Olympus

What kind of products does
Olympus Imaging Corp. produce?

With increasing concern about
the environment, market requires more strongly environmentally conscious products,
doesn't it?

What kind of program has been
started to develop the sort ofenvironmentally conscious products that customers are looking
for?

In FY2004, we produced 8.9
million digital cameras, 3.09 million film cameras, and 1.58 million
digital audio systems on a shipment
basis. These products were produced mainly in our Shenzhen andPanyu Plants in China.

Olympus has long exhibited
originality in the development ofcompact and lightweight products,
such as its OM system SLR camerain the old days, and more recently
the µ series digital camera and DS
series IC recorder. We have been
seeking high added value with theuse of fewer resources. The compact and lightweight products is
related to minimizing the environmental load
during production.

We have stipulated voluntarystandards known as Olympus Ecoproduct Standards and have clarified environmentally conscious
items and the level required for our
products. An Olympus Eco-productmark is given to each product thatmeets these standards. In production, we aim to make Olympus Ecoproducts that also exhibit high quality in environmental performance.
Concretely, we promote life cycle
assessment (LCA) to understandquantitative environmental load,from the raw material stage throughactual products to the waste disposal stage, and are carrying out product assessments to confirm that
items are environmentally conscious in the product planning &development process. We provide
products that are manufactured tomeet not only our voluntary standards but also standards enacted bypublic organizations. Our E-1 digital SLR received ECOLEAF certification in December 2003, the firstof its kind, and its product environmental information have been published by the LCA information dissemination system of the Japan
Environmental
Management
Association For Industry (JEMAI).

Shenzhen Plant, China

DS series IC RecorderDS-20 (RoHS-compatible
Product)

E-1 (FY2003 Olympus Eco-product) andZuiko Lens Series using Lead-free Lenses

20

Olympus Corporate Social Responsibility Report 2005

OM system SLR Camera* This camera is no longer produced or sold.

In these days, product packaging has changed radically,
hasn’t it?

The enclosure of environmental information to customers
has become increasingly
important. What are you goingto do about this?

We have control measures forhazardous substances, such as
heavy metals contained in products, that meet the regulations ineach country in the world, and we
can control the amount of impactthat those hazardous substances
have on the environment.
We will abolish all use of specified hazardous substances bysometime around the summer of2005, one year before the July
2006 enforcement deadline in the
EU’s RoHS Directive (restrictions
on the use of certain hazardous
substances, such as lead and cadmium, in electrical and electronicequipment).

Since around 1992, we havebeen promoting on environmental
management as well. For example,
we have discontinued the use ofvinyl chloride in product packaging, and have adopted cardboardthat can easily be recycled, thus
promoting environmental consciousness concerning our packaging materials. The individual packaging box for the E-1 is an environmentally conscious design, a onepiece box. We have developed thisusing a single material, whichsaves resources. This was awarded
the Good Packaging Prize in theJapan Packaging Contest in 2003.

We understand the importanceof public disclosure of environmental information through our Web
site and via our responses toinquiries from customers. Our Web
site introduces our environmental
activities and provides information
about the environmentally conscious features of our products. Our
Customer Support Center supplies
environmental information by telephone and e-mail. At Olympus
Imaging Corp., we will develop
advanced technology and create
and provide products that consider
the environment while remaining inclose contact with our customers.

Special Feature II: Environmental management practices at Olympus

In Europe, it is mandatory toeliminate hazardous substances
contained in products in order toprevent discarded electronicequipment from polluting theenvironment. What kinds ofmeasures are Olympus taking?

One-piece Product Packaging Box for
the Body and Lens of the E-1
MR-100 (RoHS-compatible Product)

Masaharu Okubo
President of
Olympus Imaging Corp.
21

In Harmony with the Environment“Must have a high quality in environmental performance too.” Olympus will contribute to thecreation of new values, such as a healthy environment and a sustainable development society,by offering environmentally conscious products that not only have the highest performance but
also are safe and protect the environment.

Creation of Environmentally Conscious Products
Not only human health and safety but also the workings of nature are precious andirreplaceable. By providing more products that are in harmony with the environment,
Olympus will contribute to society and nature as a manufacturer.
In Harmony with the Environment

Olympus’ Concept of Environmentally
Conscious Products
Olympus’ current and future programs
Olympus manufactures and sells products that respect the environment, and it is also actively working to increase the number of environmentally conscious products in society by purchasing such products itself. As the number of environmentally conscious products
increases, the environmental load from processing the raw materials,
assembling and shipping the products will decrease. The impact on
the environment from using and disposing of products will also
decrease. Olympus will also continue to work to manufacture, sell,and purchase environmentally conscious products in order to achievea sustainable society.
The Olympus program for environmentally conscious products
started in 1996 with the development of microscopes by the Design
and Development Group in the Ina Plant. Later, a section exclusively
for environmental control measures was established as a companywide Olympus program. In 2000, we prepared three sets of guidelines for manufacturing environmentally conscious products: theGreen Purchasing Guideline, the Green Procurement Guideline, andEnvironmental Assessment Guide of Products.
In FY2003, we started to prepare two standards for managing
chemical substances: one is Environment-related Substances Used in
Product Control Rules and the other is Environment-related
Substances Used in the Manufacturing Process Regulations (Please
see Page 30). Olympus also began certifying Olympus Eco-products,
which are environmentally conscious products manufactured according to Olympus’ own standards. To date, a total of five Olympus
Eco-products have been designed and marketed. In particular, wehave officially conducted the life cycle assessment (LCA) of the E-1
digital SLR public, so that it can be evaluated by third parties outside
the Olympus Group .
In future, we will intensify the program we have been carryingout for purchasing and providing environmentally conscious products and services. In particular, we aim to reduce the environmental
impact of all the products manufactured and sold by Olympus, tobelow their present levels.
We officially published LCA information on the Web site of the Japan
Environmental Management Association For Industry (JEMAI) in conformity with
the Type III environmental label indications stipulated in ISO/TR14025.
http://www.jemai.or.jp/JEMAI_DYNAMIC/data/current/prodobj-405-pdf.pdf■ Olympus activities for expanding the green market

Manufacture and Sales ofEnvironmentally Conscious Products(Marketing Olympus Eco-products)

Customers

Manufacturer, Seller& Purchaser

Customers

Administrative Organization

Material Manufacturer

Parts Manufacturer

Procurement ofEnvironmentally
Conscious Materials
and Parts(Green Procurement)

Consumers

Manufacturers and Sellers
other than Olympus

Set Manufacturer
Expansionof the Green
Market* Set manufacturer: Manufacturer
that procures parts from inside oroutside the company, carries out
processing and assembly, andsells finished products

22

Olympus Corporate Social Responsibility Report 2005

Enterprise

Towards a Sustainable Society

Purchasing
Environmentally
Conscious Products(Green Purchasing)Olympus Eco-products
Environmentally conscious products madeaccording to Olympus’ own standards

Olympus Eco-product markStandards &distinctive features

Descriptions of standards &distinctive features

1. Remove hazardous
chemical substances
as many as possible• Controlling chemical substances
contained in products• Controlling chemical substances used in
the product manufacturing process

2. Reduce energy use as
far as possible• Reducing electric power consumption
while products are in use

3. Promote resourcesaving and effective
use of resources• Developing lightweight, compact products
and lightweight, thin, and compact
packaging• Using a wide range of recyclable
materials• Making it easy to break down andseparate expendable parts• Making it easy to collect and recycle
materials used for packaging andshipping of products• Indicating material quality on plastic parts• Saving resources when manufacturing
and using products• Developing a long lifespan for products• Making products that satisfy upgrading
requirements

4. Dissemination of
information on
environmentallyconscious products
widely throughout
society• Carrying out environmental assessment• Providing information which makes
product users increase theirenvironmental awareness

In Harmony with the Environment

After evaluating the distinctive features of our business and products, Olympus has established its own standards in order to reduce
the environmental load of our products as much as possible. Thesestandards are established referring to the Type II environmental
label indication stipulations in the international standard ISO
14021.
We certify products conforming to these standards as
Olympus Eco-products. Olympus Eco-products have four major
distinctive features.
We also use the Olympus Eco-product mark so that users willfind it easy to recognize products that are certified as Olympus
Eco-products.

■ Olympus Eco-products standard items

Olympus carries out environmental impact assessment using LCA and officially disclosed its data.
ECOLEAF is the system for disclosing product environmental
information managed by the Japan Environmental Management
Association For Industry (JEMAI: http://www.jemai.or.jp), an
external organization of the Ministry of Economy, Trade andIndustry. The environmental load of products is calculated basedon an LCA, and quantitative data are officially disclosed, based oninternational standard Type III environmental label specifications.
Using these data, customers can quantitatively evaluate how environmentally conscious a product is. The Olympus E-1 was the firstinterchangeable lens type digital SLR camera to receive
ECOLEAF environmental label (Type III environmental label) certification*.

ECOLEAF environmental label(Type III environmental label)* For main body and accompanying items contained in the same package.
Interchangeable lens and accessories sold separately are not included.

Olympus Corporate Social Responsibility Report 2005

23

Products certified as FY2004 Olympus
Eco-products [1]CE21/CX31/CX41 Biological Microscopes
General-purpose type microscopes with advanced performanceand operability, for examination and practical training in medical
and biological fields
These biological microscopes are certified followed by
FY2003 Olympus Eco-products microscope, SZ61 and SZX7 as
FY2003 Olympus Eco-products, which employ lead- and arsenicfree eco-glass in all optical glass parts, such as lenses and prisms.
CX31 Biological Microscope

CX41 Biological Microscope

Major Features as Eco-products

In Harmony with the Environment

Material Identification Marks• Material identification marks are placed on the main molded
resin parts and die-cast parts to accelerate recycling.
Environmental Impact Assessment of Products by LCA• We carried out environmental impact assessments of products
by using Olympus LCA (OLCA), and verified their lifetime
environmental loads.
Use of Eco-glass for Optical Systems• We use lead-free and arsenic-free Eco-glass for all optics, suchas lenses and prisms.

Optical Path Diagram

CX21 Biological Microscope

Development of Resource-saving and Easy-to-recycle Packaging Materials(1) Use of Cardboard
We previously used styrene foam as
the packaging material, but have
replaced it with cardboard, making iteasier to recycle. In addition, we indicate information about the materials
used on the packaging bags to encourage recycling.

(2) Reduction of Packaging Materials
We have discontinued the previous
individual-unit packaging for CX31, andchanged to a set packaging method, inwhich units needed for observation areprepackaged together. As a result, wewere able to reduce the weight by 7%
and the number of parts by 81%,decreasing the environmental load.
Set Packaging using Cardboard

24

Olympus Corporate Social Responsibility Report 2005

Products Certified as FY2004 Olympus Eco-products [2]Medical-use endoscope video scopes: EVIS 180 scope series
A medical endoscope system consists of a video scope and a main
unit that houses a video system (color monitor, video processor,
and light source system). The video scope is comprised of theoperating section, insertion section, tip section, and connector section. The connector section is connected to the main unit video
system, and the images transmitted are displayed on the color
monitor.
The EVIS 180 Scope Series (all six products), recently certi-

fied as Olympus Eco-products, provide two kinds of video scopes:
a general-purpose video scope for the upper digestive tract, forexamination and treatment of the section from the mouth to theupper digestive tract (from the esophagus to the duodenum), and alarge intestine video scope for examination and treatment of thesection from the anus to the lower digestive tract (from the rectumand sigmoid to the ileocecal valve).
* Only the video scopes are certified as Olympus Eco-products.

Major Features as Eco-products• Surface treatment using hexavalent chromium as well as leadsoldering, both classified as hazardous, have been discontinued
during manufacturing.

Color Monitor

Use of Eco-glass for Optical Systems• Lead-free and arsenic-free optical glass (Eco-glass) is used.
Environmental Impact Assessment by LCA• A lifetime environmental impact assessment of the products, toestabllish the lifetime environmental load, was conducted, using
the Olympus Life Cycle Assessment (OLCA) procedure.

Video Scope

In Harmony with the Environment■ Medical-use Endoscope System

Reduction in Hazardous Chemical Substances

Video Processor
Light Source
System■ Video Scope Mechanism

PhotoGraphy
SystemLight Guide Light and air are supplied from
Connector the light source system.

Suction Valve

Operating
SectionPrinter

Air Supply &Water Supply
Valve

Angulation
Control
Instrument
Channel Pot

DistalTip* The photo shows the EMS260.

Patient
Insertion
Tube

EVIS 180 scope series

Olympus Corporate Social Responsibility Report 2005

25

Comprehending of Environmental Characteristic of Respective
Olympus Products
Each of our products has distinctive characteristics of its impact on the environment.
Incorporating these characteristics into our measures to reduce environmental impact
will have a great effect.

Olympus Product Life Cycle Assessments
Products for business users and products forordinary users

In Harmony with the Environment

In order to create environmentally conscious products, it is important to thoroughly investigate the causes of each product’s impact
on the environment.
For Olympus products, the causes of environmental impact of
products for business users, such as analyzers, microscopes, andendoscopes for medical and industrial uses, which we manufacturefrom the parts production stage, differ from the causes for products
for ordinary users, such as cameras and IC recorders, which have ahigh ratio of parts processed and assembled by suppliers. It is
important that measures to reduce environmental load are based onthese characteristics.
To achieve this, we carry out our own Olympus Life Cycle
Assessment (OLCA) as part of our development method, in theprocess of designing environmentally conscious products.
For instance, regarding the effect on global warming of greenhouse effect gas emissions for one of our products for business use,
the IPLEX-MX industrial endoscope, about 65% of total emissions
result from parts manufacturing, while the emission rate during use
is about 15%; therefore, reducing the environmental load of parts
manufacturing at the manufacturing stage in Olympus, and reducing
the environmental load during use by making environmentally conscious designs, will both have a great effect.
On the other hand, for the E-1 digital SLR, one of our products
for ordinary users, the emission rate share for the raw material manufacturing and parts manufacturing stages is about 99%, and theemission rate at the product-use stage is 1%. Therefore, the mosteffective way is for suppliers to reduce the environmental load at
the raw material manufacturing and parts manufacturing stages.

Olympus E-1 (FY2003 Olympus Eco-product)■ Greenhouse Gas Emissions Rates
for E-1 (converted to CO2)
Use 1%
Disposal 0%
Logistics 0%■ Greenhouse Gas Emissions
Rates for IPLEX MX(converted to CO2)

Raw Materials Manufacturing 39%
Parts Manufacturing 60%

Disposal 2%
Raw Materials
Mining 0%

Logistics
0%
Product
Assembly0%

Use 15%

Raw Materials
Manufacturing 18%

Parts Manufacturing 65%■ Olympus Life Cycle Assessment (OLCA) Conceptual Diagram
Environmentally
Conscious
Products
Environmentally
Existing
Conscious
Products
DesignImprovement
Plan

Environmental
ImpactAssessment

Environmental
Load Analysis

OLCA(Olympus Life Cycle Assessment)

26

Olympus Corporate Social Responsibility Report 2005

Raw Materials Mining 0%

Product Assembly 0%

IPLEX MX (FY2003 Olympus Eco-products)

Training People to Create Environmentally Conscious Products

Training of people is the basis of manufacturering.
The understanding and actions of the people involved with the products are importantin making environmentally conscious products.

Training People through Seminars
Increasing employees’ understanding andawareness, and accelerating their actions

Content of FY2004 Seminars
Seminars for Employees in Design & Development Posts

Design is basic of product making, and is the main determinant of
whether or not the product will be successful. We have therefore
been intensifying training for people in designing environmentallyconscious products.
In FY2004, we invited Professor Yasushi Umeda
of Osaka
University, who lectures on making environmentally conscious
products, in order for us to understand the positioning of the
Olympus’ program for protecting the global environment in society. By comparing our program to the actual examples fromaround the world introduced in this lecture, we were able toreview which parts of our program are advanced or delayed andby how much. This increases participants’ awareness of environmentally conscious product manufacture, and we will also connect
this to further improvements in our program in future.
In addition, we consider that seminars provide opportunities
for individual participants to raise their awareness of why
Olympus makes environmentally conscious products by systematically understanding social trends, including laws and regulations,both in Japan and overseas, concerning environmentally conscious
products, the Olympus Eco-products certification mechanism, thechemical substances management that supports this mechanism,
green procurement, and Olympus’ programs, including LCA.
Mr. Yasushi Umeda: Professor, Department of Mechanical Engineering and
Systems, Graduate School of Engineering, Osaka University, and a leading
scholar in the areas of environmentally conscious design and life cycle design.
He has written the “Inverse Manufacturing Handbook,” etc. He is also a Ministryof Economy, Trade and Industry council member.

In Harmony with the Environment

Purpose of Seminars

For environmentally conscious product-making to become wellestablished, it is important that consideration towards the environment be seen as the normal way to handle things in all operations
that concerns Olympus products. To achieve this, it is importantfor employees who are involved in manufacturing environmentally conscious products to have opportunities to deepen their understanding and awareness of the environment, so that they can transform this into concrete action.
Olympus recognizes that holding seminars provides important
opportunities for such employees.

Seminars for Employees in Business Operation and Sales

In order to make the manufacturing and sales of environmentallyconscious products a sustainable business, it is vital for employees
to both understand and take the right action in design and development. This is important too for the employees concerned withbusiness operation and sales who are the contact points for users
and the purchasers of our products.
In FY2004, we invited Ms. Kikuko Tatsumi , Director of
the Nippon Association of Consumer Specialists (NACS), to lecture on ideal environmental labeling for the selection of environmentally conscious merchandise, from the viewpoint of the consumer. We consider that this provides an opportunity to think
about what action Olympus must take, by gaining an understanding of the ways that enterprises and consumers think about environmentally conscious merchandise, and allows us to consider
what we need to do in order to propagate environmentally conscious merchandise in the market.
Ms. Kikuko Tatsumi: Director of the Nippon Association of Consumer
Specialists (NACS), concurrently Chairperson of the Environmental Committee of
NACS. Active as a consumer lifestyle adviser on the roles of consumers andenterprises in achieving and maintaining a sustainable society and the ideal
ways of communication between consumers and enterprises. She is also a
Ministry of Economy, Trade and Industry council member.

Results of FY2004 Seminars and Future Plans

In FY2004, we held five seminars for employees in design anddevelopment posts, and two seminars for employees in business
operations and sales posts. A total of about 220 employees participated in these seminars.
In future, we will further promote human resources development by expanding the seminar topics to cover a series of jobs
related to Olympus products, such as business/product planning,
design & development, materials purchasing, manufacturing &assembly, inspection, business operations & sales, and logistics.

Seminar for Employees in Design &Development Posts

Seminar for Employees in Business
Operations and Sales Posts

Olympus Corporate Social Responsibility Report 200527

Purchasing and Procuring with Environmental View

We are not only producers, but also consumers.
A view that gives consideration to the environment is vital in our activities in procuring
and purchasing materials and parts as an enterprise with harmony in society and nature.

Green Purchasing and Green Procurement
Olympus: both a producer and a consumer

In Harmony with the Environment

Olympus defines green purchasing and green procurement as follows:
Green Purchasing: Purchasing of OA (office automation) equipment, office supplies, lighting fixtures and motor vehicles, produced to minimize their impact on the environment, for business use by our employees
Green Procurement: Purchasing of raw materials and parts, produced to minimize their impact on the environment, tobe used for manufacturing Olympus products
The reason why we have created these two categories isbecause there are two different viewpoints: the case in which we, asa consumer, use the purchased products as is, and the case in which
we as a producer use the purchased products to make new products.
We are taking an environmentally conscious viewpoint in all of thepurchasing activities that support Olympus’ business activities.

Actual Results for Green Purchasing in FY2004

Introducing Eco-cars

We are introducing Eco-cars
for new company vehicles aspart of our efforts to control
emissions of substances thatcause global warming. In
FY2004, Shirakawa Olympus
and Aizu Olympus each purchased a hybrid car. We willcontinue to introduce Eco-cars
that are certified low emission
vehicles with ratings of ✩✩✩or higher. We also urge eachdriver to take Eco-driving ,an environmental activity that
controls emissions of substances that cause global warming, and we appeal to all drivers
to avoid unnecessary idling by
turning off their engines in theparking lots at all our plants.

Promoting an electronic purchasing system

Eco-cars introduced as Company
Vehicles

No-idling Sign at Technology ResearchInstitutes (Hachioji)

Amount (¥) of Environmentally conscious paper,Greenstationery, and office supplies* purchased
× 100
Purchasing =Amount (¥) of all paper, stationery, and office supplies purchased
Rate (%)

Paper, stationery, and office supplies

Our green purchasing rate
in FY2004 was 35.8% (for plants
and basesthat have introduced the electronic purchasing system). The following diagram shows the transition of actual resultsfrom FY2002.
Education of staff in charge of purchasing on the use of green
purchasing and green procurement is insufficient at present; therefore, the green purchasing results for FY2004 remain almost
unchanged compared with the previous two years. We will makeefforts to increase staff awareness of green purchasing and green
procurement by holding green purchasing seminars in FY2005.

* Environmentally conscious paper, stationery, and office supplies are any items that can be classified
under at least one of the following categories: merchandise that has received an Eco-mark;merchandise that has received a Green-mark; merchandise included in the GPN environmental data
book; and merchandise conforming with the Green Purchasing Law.

Tokyo area (Shinjuku, Hachioji), part of the Mishima Plant, part of the
Tatsuno plant, and all branches and business offices throughout Japan)
Eco-cars: Olympus considers the following five categories of vehicles to be
Eco-cars: certified low emission vehicles with higher than a ✩✩✩ rating, electricvehicles, hybrid vehicles, natural gas vehicles, and methanol vehicles.
Eco-driving: Generally, Eco-driving means the continuous practice of“acceleration work,” i.e., no unnecessary sudden stops, sudden acceleration,etc., while conscientiously avoiding all unnecessary idling, to reduce gas emissions. Eco-driving is considered an important environmental activity that contributes to improvements in fuel consumption, helps to prevent accidents, andreduces air pollution.

■ Number of Company-owned Vehicles in Japan (as of March 31, 2005)
Plant■ Actual Green Purchasing Results
Green purchasing rate (%)
100
80
60
40

36.1

35.0

35.8

20
0
(FY)

28

'02

'03

'04

Olympus Corporate Social Responsibility Report 2005

Total Number of Number of Eco-car
Vehicles Owned Eco-cars Rate (%)

Olympus Corporation Head Office, all branches and business offices throughout Japan

360

250

69

KS Olympus Co., Ltd.

212

94

44

Olympus Corporation Tatsuno Plant, Okaya Olympus Co.,
Ltd. and Olympus Opto-Technology Co., Ltd. Head Office

21

3

14

Olympus Corporation, Ina Plant

11

0

0

Olympus Corporation, Technology Research Institutes(Hachioji) and Hinode Plant

10

0

0

Aizu Olympus Co., Ltd.

5

2

40

Shirakawa Olympus Co., Ltd.

3

1

33

Mishima Olympus Co., Ltd.

3

0

0

Aomori Olympus Co., Ltd.

2

1

50

Olympus Opto-Technology Co., Ltd., Omachi Branch

2

1

50

Olympus Opto-Technology Co., Ltd., Sakaki Branch

2

0

0

Olympus Logitex Co., Ltd.

2

0

0

Total

633

352

56

* In addition to the major subject scope, we have included the following: Olympus Corporation Head
Office, all Olympus Corporation branches and business offices throughout Japan, KS Olympus Co.,
Ltd., and Olympus Logitex Co., Ltd.

Procurement Policy
Fair and impartial trade as the basis of our
procurement activities
Olympus produces a variety of products, including cameras andequipment for medical use; for these we procure various materials
and parts from suppliers around the world. We have been making
efforts to encourage green procurement to protect the environment, aiming to carry out fair and impartial trade that contributes
to the mutual development of all the enterprises involved, standing on an equal footing with our suppliers, based on the Basic
Purchase Trade Regulations.

in recent years, and the number of suppliers evaluated at level A
has increased.
On the other hand, we have asked those suppliers whose environmental activities are judged insufficient and who are evaluatedat level D or E, to improve their programs.
Until FY2004 we have assessed the activities of domestic
suppliers only, but from FY2005 on we will gradually expand thescope of assessment to include overseas suppliers.
■ Results of the Environmental Measures Survey

FY2002
21.6%

9.0%

18.1%

16.1%

13.0%

10.6% 11.6%

Basic Purchase Trade Regulations (Abstract)
36.0%• Purchasing, which is open to suppliers both inside and outside ofJapan, will be fair and impartial, and will be carried out usingeasy-to-understand and simple procedures.

Level
A

Environmental Measures Survey and Green
Procurement Basic Information Survey
Olympus distributes the Olympus Green Procurement Standards
to all suppliers with which we deal continuously. The booklet also
contains the Olympus Environmental Principles andEnvironmental Action Guideline for Environmental Protection
Declaration, clearly showing our environmental concepts, and we
ask our suppliers for their understanding and cooperation in theenvironmental measures survey and Green Procurement Basic
Information Survey.
In addition to procuring materials and parts with lower environmental loads, Olympus will promote green procurement jointlywith suppliers, with the aim of eliminating all hazardous chemicals substances.

8.1% 8.7%

Environmental Activity Level
High

Green Procurement Activities

15.0%

1.3%

• We will select and purchase the best assets and services on thebasis of economic rationality.

• We will work to protect our resources and protect the environment.

18.3%

FY2004• Under conditions of free competition, we will seek mutual prosperity in coexistence based on mutual trust and equal positioning.

• Purchasing shall conform to all applicable laws and to the spirit ofthose laws.

12.6%

Low
Level
A-

Level
B

Level
C

Level
D

Level
No
E response* We did not carry out the survey in FY2003.

Green Procurement Basic Information Survey

In Harmony with the Environment• In conformity with our management policies, we will actively contribute to improving the profitability and stability of the company
over the long term.

Olympus has joined the Japan Green Procurement Survey
Standardization Initiative (JGPSSI) , and conducts a survey ofcontrolled chemicals (see page 30) contained in materials andparts used for our products according to the list of chemical substances that require a survey as determined by JGPSSI. We ask
suppliers to analyze and provide information concerning thechemical substances contained in materials and parts and conduct
our own analyses where necessary.
The information collected through the green procurement
basic information survey is managed using a dedicated database,and information is verified by the staff members responsible fordesign & development and purchasing. Selection and changes inmaterials, parts, and suppliers are done according to this verification, and we make great efforts to ensure that final products do notcontain any controlled-use chemical substances.
Japan Green Procurement Survey Standardization Initiative (JGPSSI):
Organization established for the purposes of reducing the labor involved in surveys and improving the quality of answers by making common lists of survey
subjects and answer formats for green procurement surveys. At present, over 80
major domestic manufacturers participate in JGPSSI, and they are involved inconsultations on the development of the green procurement survey method usedin Japan into a common method worldwide.

Environmental Measures Survey

The purpose of the environmental measures survey is to confirm
the actual amount of effort suppliers are making to protect
resources and the environment. In assessing our business witheach supplier, in addition to assessing quality, delivery time, andthe cost of materials and parts, assessing each supplier’s environmental activities is also an important point. In this assessment, weevaluate the environmental activities of suppliers using six gradesfrom A to E, including A-.
Suppliers’ environmental consciousness has greatly improved

Chemical Substance Analysis Work

Olympus Corporate Social Responsibility Report 2005

29

Managing and Understanding Chemicals Used in Products andProduction Processes
We must manage chemical substances appropriately to minimize their impact on healthand the environment. Olympus has detailed knowledge of the emissions and quantitative
mobility of the chemical substances used in product development and production
processes, and is making efforts to reduce the environmental risk.

Managing Chemical Substances in Products
Establishing regulations for controlling environmentrelated substances

In Harmony with the Environment

Recently, in order to protect the environment and human health,demand for environmentally conscious products has been strong,
and regulations on the use of certain chemical substances formaterials used to make products have been tightened. In particular, both in Japan and overseas, there are movements toward controlling plastics and metals used for electrical and electronic products and other hazardous substances contained in electronic parts.
In Europe, the RoHS Directive, stipulating restrictions on theuse of certain chemical substances in electrical and electronicequipment, will come into force in July 2006, when the use of thefollowing substances will be restricted.
■ Chemical Substances Designated in the RoHS Directive
Restricted Substances

Remarks
Main Uses and Parts

Toxicity Information*

Cadmium

Cord sheathing, plastic stabilizer, dry cells

Cadmium causes liver and kidney disorders
and osteomalacia and is also a carcinogen.

Lead

Lead solder

Lead can have harmful influence on the nervous system and hematopoietic organs aswell as on children’s mental development.

Mercury

Switches, electricbulbs, dry cells

Harmful influence on reproductive functions

Hexavalent chromium

Plating on screws, etc. Hexavalent chromium has harmful influenceon skin, causes ulcers, and is carcinogenic

Polybrominated biphenyls(PBBs)

Flame retardant forplastics

Hormone disruptor, suspected harmful influence on children’s growth

Polybrominated diphenyl
ethers (PBDEs)

Flame retardant forplastics

PBDEs generate bromide-based dioxins, andare suspected of being hormone disruptors.

* These harmful influences on health will not occur during normal use of products.

In FY2004, we established Environment-related Substances
Used in Product Control Rules. These rules are specified for
products for the entire company based on the environmental laws
and regulations relating to products and tighten the control ofchemical substances contained in products. In these regulations,chemical substances subject to control are divided into two categories: banned substances and controlled-use substances.
■ Environment-related Substances Used in Product Control Rules (Abstract)

Survey of Substances Subject to
the PRTR Law
Survey on the use of chemical substances that areused in amounts of over 10 kg per year
Olympus controls the chemical substances used during production,
dividing chemical substances into completely discontinued substances, substances expected to be completely discontinued, limiteduse substances, and properly controlled substances, in its
Environment-related Substances Used in the Manufacture Process
Control Regulations.
In particular, with regard to PRTR
substances, which areproperly controlled substances, we survey all the chemical substances that individual plants handle in amounts of over 10 kg ineach fiscal year and also collect data on each substance for which
the total annual amount handled by all plants is 100 kg or
more.
As a result, in FY2004, the total handling of substances subject to the PRTR Law was increased by 1.67 tons from the previous year, to 30.94 tons. Because the development of substitutes
advanced, we were able to completely discontinue the use oftrichloroethylene, which was scheduled to be completely discontinued by the end of FY2004. However, we could not completely
discontinue the use of dichloromethane because we were obliged
to use 440 kg of it to maintain parts quality in a portion of theclear plastic lens molding and lens parts recycling processes. In
FY2005, we will continue our efforts to develop a substitute fordichloromethane and limit its use in order to control the level ofconsumption.
Law Concerning Reporting, etc., of Releases to the Environment of SpecificChemical Substances and Promoting Improvements in Their Management. The
purpose of this law is to accelerate improvements in voluntary control by business operators and to prevent obstacles to environmental protection.

■ Handling of PRTR Substances(t)

174 substances subject to the PRTR Law,in four electrical and electronic organizations

120

354 substances subject to the PRTR Law
Banned Substances
Level 1:
Use of the substance in products is basicallybanned.
Level 2:
Use of the substance in products is banned
according to the use-restriction plan.

Controlled-use Substances
The conditions under which these substances are contained in products must be
controlled.

16 varieties of substances, including:Cadmium and its compounds
Hexavalent chromium compounds
Lead and its compounds
Mercury and its compounds
Polybrominated biphenyls (PBBs)
Polybrominated diphenyl ethers (PBDEs)

100

10 varieties of substances, including:
Antimony and its compounds
Arsenic and its compounds
Beryllium and its compounds
Bismuth and its compounds

40

80

76

60

55
41

39

35

32

29

31

'01

'02

'03

'04

20
0
(FY)

30

Olympus Corporate Social Responsibility Report 2005

'98

'99

'00

Reducing the Environmental Loads of Packaging and Logistics fromthe 3R Viewpoint
An environmental load exists not only while manufacturing products, but also in the
packaging and logistics stages. Olympus is developing the latest environmentallyconscious packaging and logistics systems from the viewpoint of the 3Rs (Reduce, Reuse,
Recycle), within the international shipping environment.

Japan Packaging Contest
New-type plastic containers receive an award

Reducing Environmental Load by
Optimizing Packaging and Logistics
Survey of the International transportation environment
The Olympus packaging & logistics system is divided into product logistics and parts logistics. We are making great efforts to
reduce the environmental load from the 3R (Reduce, Reuse,
Recycle) viewpoint in developing compact and lightweight packaging, reducing the number of packaging materials used, anddeveloping returnable packaging containers made using recycledmaterials, in light of the characteristics of the products and parts
to be transported. The following diagram summarizes these measures. Our efforts thus focus on achieving further reductions inenvironmental load by pursuing each individual measure from the3R viewpoint.

In Harmony with the Environment

Polypropylene plastics cardboard are already in practical use as animportant tool in popularizing returnable containers, which reduce
environmental load when transporting parts from suppliers atbases in Japan and overseas.
In FY2004, we designed a washable version of plastic containers to make logistics a cleaner process. The previous version
had a hollow. When washing this type of containers, water entered
the hollow and it took a long time for the containers to dry. For
the new type of plastic containers, we developed a special
machine that seals off the hollow to prevent water getting in.
We also effectively utilize the materials recovered from oldtype plastic containers for recycling. In addition, the new containers have improved bottom sections to withstand the weight ofheavy parts so that their application will expand.
In recognition of the excellent function of the new plastic
Old-type Plastic Cardboard Container
containers as circulation-type
packaging and their effect on
waste reduction during production and transportation, we
received an award in the Electric& Equipment Packaging
Category in the 2004 Good
Packaging Contest sponsored by
the Japan Packaging Institute. In
2003, we received an Adequate
New-type Plastic Cardboard Container
Packaging Award.

■ Measures to Reduce the Environmental Load due to Packaging and
Logistics

Parts Logistics

Thorough
Applicationof the 3Rs

Product Logistics

Simplification andCommon Use

ReduceCompact Packaging &Elimination of
Excessive Packaging

Development ofLong-life & Clean
Logistics

Reuse(Returnable)

Developing the Reuse of
Large-scale Merchandise

Use of Plastics
and Steel

RecycleSelection of
Recyclable Materials

Reducing the Environmental Load due to Packaging and Logistics

Mr. Masami Kurihara of the Logistics
Development Department, responsiblefor improving packaging
Received an Award in theElectric & Equipment Packaging
Category in the 2004 Good
Packaging Contest

We are also surveying and analyzing the actual effects (impact,vibration, temperature, and humidity) on products and parts while
products are being delivered to customers, in the internationaltransportation environment.
We are making efforts to optimize packaging and logistics to
avoid difficulties and waste by reviewing the company’s packaging and cargo test methods and packaging design standards basedon the results of these analyses.

Olympus Corporate Social Responsibility Report 200531

Preventing Global Warming
Olympus has been emitting greenhouse gases from the energy used in its production
activities. One of our most important tasks is the suppression of greenhouse gas emissions
to prevent global warming, which is becoming more serious. We are now energeticallyworking to prevent global warming.

Concept of Global Warming Prevention

Goal and Actual Result in FY2004

Reduction of CO2 emissions per unit of sales andreduction of greenhouse gas emissions

CO2 emissions per unit of sales 0.3% decrease

CO2 emissions=
per unit of sales

CO2 emissions by Energy Systems (t-CO2)
Consolidated Sales (100 million yen)On the other hand, measures for reducing emissions of greenhouse gases, such as HFC and PFC, differ from the measures for
reducing energy consumption. Emissions of these gases can be
reduced by installing abatement equipment for non-energy
derived greennhouse gases or by replacing them with other gases.
Once we clarify the current conditions surrounding emissions ofgreenhouse gases, we set goals for overall reductions and put into
the effect, measures accordingly.

Goal: CO2 Emissions per Unit of Sales

The CO 2 emissions per unit of sales in FY2004 was 15.2 tCO2/100 million yen, a decrease of 0.3% from FY2003. The twocauses of the unattained goals were that we added the Panyu Plant
in China to be subject to environmental management and that CO2
emissions drastically increased due to the increased production ofdigital cameras. Also, sales did not increase because of the lowered product unit price despite the fact that the number of digital
cameras produced rose.
Aiming to stimulate activities in all facilities, we launched asystem by which each facility makes a self-assessment of the status of its own activities and shares the results with other facilities.
Accordingly, we are carrying out further improvements in energysaving activities in all facilities, by sharing examples of eachfacility’s activities and by improving weak points and developing
advanced case studies.
In the future, we will make further improvements in eachfacility and will study energy-saving measures before installing
new equipment or building new structures. We will also introduce
energy-saving equipment when replacing old equipment andintroduce cogeneration systems , etc.
A cogeneration system is a system that can supply heat and electricity
simultaneously. While it generates power using a motor, the waste heat generated at the same time is utilized for hot water supply and air conditioning. Theenergy efficiency of a cogeneration system is higher than when using electricity
or heat alone.

■ Changes in Emissions of CO2 from Energy Systems and CO2
Emissions per Unit of Sales(t-CO2)In order, these are hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. They are all greenhouse gases that have global warming effects and are
subject to reduction under the Kyoto Protocol.

Area

Japan

Classification
Electric power

10,000 kWh

Europe &North America

Production

Non-production

Production

Production

9,990

548

3,452

1,141

Heavy oil

s

4,139

0

2

0

Light oil

s

74

0

4,326

47

Gas

1,000 m3

911

0

149

6,726*

Others

s

325

113

0

0

Energy volume

TJ

1,203

58

518

140

* Production in Japan: Major subject scope
Non-production in Japan: Olympus Head Office, Hatagaya, Logitex
Production in China: Shenzhen, Panyu
Production in Europe and North America: OWI, KeyMed, OAI* Gas equivalency unit in Europe and North America is 1,000 kWh.

32

China

Olympus Corporate Social Responsibility Report 2005

100,000

CO2 emissions■ Actual Energy Consumption Records−6% (compared to FY2003)(Applies to all Olympus Group Production Facilities)

80,00060,000Japan
China
Europe & North America
Ratio of CO2 emissions per unit of sales (1990 : 100)
7,593 100
7,456
90
100
82.2
7,062
7,076
80
74.6
6,905
70
74.7
74.8
71.3
60
21,50525,551
22,07535,92537,84650

40,00040

50,44049,63347,75752,78753,13852,24420,000

30
20
10

0

(FY)

0

'90

'00

'01

'02

'03

Ratio of CO2 emissions per unit of sales

In Harmony with the Environment

Olympus products are distinguished by their precision and compact size. Due to these factors, the space and energy needed for
production activities are relatively small. However, in working toprevent global warming we are increasing the efficiency of ourenergy usage even further and making great efforts to reduce
emissions of greenhouse gases—HFC, PFC, and SF 6 —from
non-energy systems.
We must acquire more equipment and construct more plants
when expanding our business. Energy consumption will increase
accordingly, and to counteract this, we take measures to reduce
the environmental load of this business expansion by, for instance,
installing energy-saving equipment when replacing the old one
and incorporating energy-saving systems from the design stage
before building new structures. Olympus carries out rational evaluations of the increase in our energy consumption efficiency,
using the index of CO2 emissions per unit of sales shown in thefollowing formula.

(from FY2003)'04* Changes in emissions of CO2 from energy systems and CO2 emissions per unit of sales within the major subject scope of
this report, including those in Shenzhen, Panyu, OWI, ODI, KeyMed, and OAI* Consolidated sales figure is calculated based on figures in accordance with the major subject scope of this report.
* The following shows greenhouse gas conversion coefficients.
Japan: Calculated using the conversion coefficient officially announced by the Ministry of the Environment in 2003 andthe conversion coefficient officially announced by the Federation of Electric Power Companies of Japan. The
FY2001 conversion coefficient was used as the conversion coefficient for electric power in 2004.
Overseas: Calculated using the Greenhouse Gas (GHG) protocol conversion coefficient officially announced in 2004.
http://www.ghgprotocol.org

Environmental Consciousness in Building
Construction

Clarifying and implementing measures to reduce
emissions

Implementing preventive energy-saving measuresfrom the design stage

In FY2004, Olympus started a new program to clarify the amountof greenhouse gas emissions from non-energy systems and themeasures needed to reduce these emissions. In Olympus, thesegreenhouse gases are mainly used as spraying agents for blastingout dust, as cleaning agents, and as etching agents in the manufacture of semiconductors. The increased emissions from FY2002 to
FY2003, converted to CO2, are due to the change in the cleaning
agent for improving lens quality.
In FY2004 emissions of non-energy system greenhouse gases
converted to CO2 were 5,469t-CO2, which means that we wereable to reduce this by 16% compared to the previous year. We
reduced greenhouse gas consumption by replacing the spraying
agent for blasting out dust with an injection agent with a smaller
Global Warming Potential (GWP)
and by using compressed
air. We also improved the way we use cleaning machines. We will
set a goal for a reduction in greenhouse gases for the future, andwe will carry out measures to achieve this reduction based on theactual work situation, including workability and the quality
required for products. We will continue our program of technological development, including the development of compact cleaningmachines.

Accompanying the increase in production from business expansion, we completed a new building at the Tatsuno Plant inNovember 2004. Because building construction is connected toincreased energy consumption, and energy reduction measures are
difficult to implement after construction has finished, we implemented preventive measures at the building design stage to control the increase in energy consumption, taking into account theenergy consumption conditions at the stage when the building isin use.
The following concrete measures were taken.

Index showing the effect of the emission of each individual greenhouse gas
on global warming, with its duration taken into consideration, relative to theeffects of CO2. Indices will change depending on the estimated period of thegreenhouse effect. In comparison of GWPs for a period of over 100 years for thesame weights, the GWP of methane is about 21 times that of carbon dioxide, the
GWP of nitrogen suboxide (nitrous oxide) is about 310 times that of carbon dioxide, and GWP values for CFCs range from about several hundred to several
thousand times that of carbon dioxide.

Monitoring Equipment• Clarifying the electrical energy consumption per unit of equipment by introducing electric power monitors
Lighting Load Control Measures• Introducing energy-saving lighting fixtures• Controlling lighting in common-use areas using motion-detector
sensors• Studying zoning
for light switches
Air-conditioning Load Control Measures• Using materials with high adiabatic performance for roof andouter walls• Improving adiabatic performance by using double-glazed windows

In Harmony with the Environment

Reducing Greenhouse Gas Emissions
from Non-energy Systems

Water-saving Measures• Introducing water-saving device (such as a water-saving top)
We expect to construct more new buildings in the future; wewill therefore clarify and study the effects of the recent preventive
measures in the Tatsuno Plant and will actively implement environmental management when constructing new buildings. We will
also carry out environmental control measures not only when constructing new buildings but also when building extensions toexisting buildings and when introducing new equipment.
Zoning: Designing the layout of electric switches so that lights can be turnedon only in the places where they are needed.

Replacing the Use of the Old Spray-can Propellant(left) by the Use of Air (right)■ Changes in CO2 Emissions from Non-energy Systems
CO2 emissions (t-CO2)
7,000

6,514
6,000

5,469
5,000
4,000
3,000

3,064

Improving the Adiabatic Performance of
the Roof

Adopting Double-glazed Windows andEnergy-saving Lighting

2,000
1,000
0
(FY)

'02

'03

'04

* Calculated using conversion values officially announced by
the Intergovernmental Panel on Climate Change (IPCC) in

Olympus Corporate Social Responsibility Report 2005

33

Reducing the Total Volume of Waste Discharged and Recovering
Resources
To spend global resources wastefully has become a serious problem.
Olympus is aiming to achieve a circulation-oriented society by using the smallest amountsof resources as possible for its production activities.

Waste Reduction Concepts
Maintaining Zero emissions and reducing the total
volume of waste

In Harmony with the Environment

Olympus has been carrying out a Zero emissions
program,aiming to achieve reductions in the amounts of waste disposed ofand improvements in the recycling ratio. We achieved Zero emissions at our development, production, and logistics bases in Japan(11 sites) in FY2003 and continued these activities at all sites in
FY2004.
In addition to reductions in the amounts of waste disposed ofand improvements in the recycling ratio by maintaining and continuing Zero emissions, we will make efforts to achieve a reduction in the total volume of waste by the following procedures, giving the highest priority to control measures at the source of thewaste.
1. Reduction in waste generation:
Production activities using minimum resources needed
2. In-house circulation:
Reduction in input of resources
3. In-house volume reduction:
Reduction in volume discharged outside the company
4. Recycling into valuable resources:
Effective use of resources by thoroughly sorting waste materials
5. Resource recovery (1):Recycling and reuse of recovered resources
6. Resource recovery (2):
Recovery of waste heat as energy
7. Landfill after treatment:
Disposal of waste as landfill after intermediate treatment, such as
dehydration, neutralization, and incineration

While making efforts to promote Zero emissions and reduce
the total volume of waste, we will strengthen our checking system
to ensure that each waste service company is disposing of waste
appropriately and will also intensify our risk management regarding waste, especially the safe disposal of medical waste.
The Zero emission standard, as we define it at Olympus, is to reduce thefinal amount of waste disposed of in landfill, which does not enter the recycling
route, to less than 1% of the total amount of waste discharged.

Waste Reduction Goal and Actual Resultsin FY2004
Total volume of waste discharged reduced 10.6%
from FY2000 and recycling rate improved to 96.9%

Goal:
Total volume of waste discharged −15% (compared to FY2000)
Recycling rate
Over 92%(Applies to: Total domestic production and development facilities)

We were not able to achieve the FY2004 goal of a 15% or more
reduction in the total volume of waste discharged, with the figure
standing at 3,365 tons (a 10.6% reduction compared to the FY2000
level). Despite a greater input of resources as a result of increased
production, we steadily reduced the total volume of waste during
the period from FY2000 to FY2003 by thoroughly controlling thequantity of waste discharged. However, the total volume of waste
in FY2004 was slightly higher than that in FY2003 due mainly toequipment in facilities being abandoned. In the future, we will
strive harder to improve the utilization of resources in production
activities and reduce the generation of waste.
On the other hand, we achieved a recycling rate of 96.9%,
better than the FY2004 goal of 92% or more, by thoroughly sorting and collecting waste and using it as a recoverable resource
since FY2000 while seeking other resource recovery routes. We
were able to increase our recycling rate by promoting, and ultimately achieving, Zero emissions in FY2003. Furthermore, by
maintaining Zero emissions in FY2004 we were able to achieve
our recycling rate goal. We will make further efforts to improve
our recycling rate and convert waste into valuable materials.
■ Changes in the Amounts of Waste Generated and Recycling Ratios
Amount of waste contracted for intermediate disposal*
Amount of waste recycled
Amount of valuable resources
Amount circulated and reduced inside the company
Recycling ratio

(t)
4,000

96.9
0
407

162
14
381

3,000

(%)
100

93.5
268

21
223

23
382

75

75.9

1,392
58.4
2,000

47.8

50

2,343
1,600
2,776

1,000

2,856
25

1,966
1,410
830

0

(FY)

Sorting and Collection of Waste (Omachi Branch)

34

Olympus Corporate Social Responsibility Report 2005

208

'00

'01

* Waste that does not enter the recycling route

'02

'03

104

'04

0

Overall Content of Waste Reduction andRecycling Activities
Daily efforts bring great results
We carried out a range of activities in all our facilities with theaim of reducing the total volume of waste and increasing recycling rates in FY2004. The figure below illustrates our activities,
including those that had the largest reduction effects and thosethat are unique. (Figures indicate the volumes of waste tackled bythese activities and the reductions in volume achieved.)

Olympus is making particular efforts towards in-house circulation and product recovery in an attempt to reduce the input of
resources. To begin with, we strive, within the company, to reducethe volume of waste discharged from manufacturing processes.
The waste discharged despite such efforts is then treated according to the following order: recycling into valuable resources, recycling, and disposing of as landfill after intermediate treatment.

■ Examples of Waste Reduction and Recycling Activities in FY2004

Product recovery
Spool

Reduction in Volume ofWaste within the Company
CompostSpool

BobbinAcid Concentration
SystemOlympus color film
(endoscope film cassette)
Spool details

Composter (Okaya)

We concentrate the acid discharged from production
processes to reduce the volume of sludge.

Remanufacturing Spools
We recover endoscope film cassettes (spools, springs, and bobbins) to remanufacture them.

Wastewater Treatment
SystemBy controlling the wastewater treatment system appropriately, we are reducing
the volume of sludge gener- Acid concentration system (Tatsuno)
ated.

Recycling of Waste
into Valuable Resources• Cardboard (Aomori):• Metal Scraps (Hachioji):• Metal Scraps (Mishima):

11 t
20 t
3t

In Harmony with the Environment

We use a composter to reduce the volume of foodwaste generated in the dining facilities and utilize thecompost as fertilizer.

SpringCirculation and Reductionin the Volume of Waste
within the Company

Reduction in
Waste Generation• Endoscope Film Spools (Shirakawa): 11 t
• Mold Plastic (Omachi):
12 t• Food Waste (Okaya):• Sludge (Tatsuno):• Lens Polishing Wastewater
Treatment Sludge (Sakaki):4t
95 t
Resource Recovery
14 t• Waste Acid (Aizu):
2t• Waste Alkali (Aizu):
5t• Waste Liquid from Experiments(Hachioji):
57 t• Recycling of Materials (Mishima): 0.1 t

Inside Olympus
Circulation within
the Company
Circulation of Plastic
Resin for Molds
within the Company

Product Recovery
Recycling of Materials

We circulate plastic resin
to reduce the input of new
resources.
Circulation of plastic resin for molds

Appropriate Management of Waste
Containing PCBs
Plan for a quick treatment of waste that contains PCBs

We collect used slippers and work
clothing and recycle their materials
to make work gloves and insoles.

Intermediate+ Landfill
Treatment* Facility names are indicated in parentheses.

At each facility, Olympus carefully stores and manages PCBcontaining electrical equipment, such as transformers and condensers. In the future, the treatment of such equipment will begin
in our PCB waste treatment bases throughout Japan, and we willquickly and appropriately treat PCB waste.
■ Quantity of PCB-containing Equipment Stored and Used

Quantity stored(units)Transformers

Condensers

Ballasts

1

19

638

Storage Situation of PCB-containing Equipment

Olympus Corporate Social Responsibility Report 200535

Formulating a Basic Environmental Plan toward an
Environmentally Advanced Company
Olympus aims to become an environmentally advanced company to implement its “Social
IN” management concept. Olympus will PLAN the long-term goals and directions at
which it should accomplish, actually DO the plan, CHECK realistic goals, and ACT torealize each environmental measure.

Olympus Corporate Image for 2007

Every three years, Olympus formulates its Basic 5-year
Environment Plan. We started to implement our Basic
Environmental Plan 2002 in FY2002 under the name of “Ecology
Vision 21,” showing our plan for the environment at the beginning of the 21st century. Recently, for the first time in three years,
we revised the Basic Environmental Plan to create our Basic
Environment Plan 2005. We will implement this plan as “Ecology
Vision 21 Part II.”

Becoming an environmentally advanced company

In Harmony with the Environment

The Olympus Group aims to become an environmentallyadvanced company by making Eco-Design(environmentallyconscious design) well-established in its corporate activities andfulfilling its responsibilities (Corporate Social Responsibility:
CSR) to support the creation of a sustainable society.

Eco-Design is a comprehensive method for environmental management. Its
purpose is to work towards a sustainable economic society by reducing the environmental load on society. It aims to create new added value from both the environmental and economic aspects by optimizing all processes, from manufacturing through production technology and business models to social systems.

Basic Environmental Plan 2005

Ecology Vision 21 Part II
Environmental management programs as brand strategy
and CSR activities for maximizing corporate value

Becoming an environmentallyadvanced company

36

I.

II.

III.

Creating SophisticatedEnvironmentally Conscious Products

Implementing Eco-facilities andEco-efficient Management

Promoting Global Environmental
Management

To increase sales of high-level
Type II Eco-products through thecreation of new value

To achieve a society in whichsustainable development is possible
by doubling the environmental
efficiency

To reduce the legal risk andimprove interactive communicationto activate and strengthen our
global organization structure• Increasing the sales of environmentallyconscious products• Constructing an environmental technology information management system• Accelerating energy saving and preventing global warming• Reducing waste and accelerating the effective use of resources• Improving the system for dealing with environmental laws and regulations• Reducing environmental risk
• Reducing the environmental load in logistics• Improving environmental communication

Eco-products

Eco-facilities

Eco-management

Olympus Corporate Social Responsibility Report 2005

■ Summary of actual results in FY2004

Eco-products (Accelerating the introduction of environmentally conscious products to markets)
Priorities
PLAN
Applying Product
Assessment
Methodto Products

Developing
Environmental
Technology and
Applying it
to Products

Goals

Actual Results
DO

Assessment
CHECK

Future Programs

ACT

Reference
Pages• Introduction of Olympus Eco-products to themarkets of all groups was completed, after the
CX21, 31, 41 biological microscopes and the
EVIS 180 scope endoscope series received
Eco-product certification.

• We will set sales goals for each field
and increase the range of Ecoproducts.

• Establishing schedules for the development of new products that do
not contain any of the substances
designated by the RoHS Directive• In line with green procurement, all branches
and groups started hazardous chemical substance surveys, which are progressing asplanned.

• We will review the changeover plan andintensify the program to accomplish
amended goals.

• Introducing OLCA

• The Production Engineering Division supported LCA, and technology transfer to eachgroup is progressing.

• We will promote the introduction of LCA
in each field, further expanding its application.

• Applying hexavalent-chromiumfree technology to new products• We completed the elemental technology study,
and all divisions are now checking the functioning and performance of alternative parts,
including purchased parts.

• We will continue the verification of thefunctioning and performance of alternative parts.

• Using lead-free solder on new
products• Application to new products, including products processed in-house and products manufactured by external consignees, is progressing as planned.

• We will further promote the application
to new products, both products processed in-house and products manufactured by external consignees.

P30• To improve packaging materials, we developed and are using new-type plastic containers.

• We will continue the improvement of
packaging materials to further promote
the 3Rs.

P31• Introducing Olympus Eco-products
to the markets of all groups

P29

P26

P25, 30

Eco-facilities (Improving environmental management by introducing an environmental efficiency index)
Priorities

Goals

PLAN

Actual Results

Assessment

DO• Improving efficiency by 6.0% comAccelerating
Energy-saving and pared to the previous year with regard to CO2 emissions
Resource-saving
Measures

CHECK• Actual efficiency results were almost the sameas in the previous year, and the goals were
not achieved.

Future Programs

ACT• We will review concrete improvement
measures and include them in the business plan along with an investment
plan.

• Energy-saving investment, including electric
power monitoring, is not sufficiently advanced.

• Reducing the total amount ofwaste by 15% compared to
FY2000• Total amount of waste was reduced by 10.6%
compared to FY2000, and the goal was notachieved.

• We will study process improvements,
including upstream, to reduce the total
amount of waste.

• Achieving a recycling rate of 92%
or higher• Recycling rate was drastically increased to
97% by the ongoing Zero emissions activities.

• Starting Zero emissions activities
in overseas plants• We discussed the definition of Zero emissions
for overseas plants but did not reach a conclusion.

• We will determine the direction for promoting Zero emissions based on the infrastructure, laws, and regulations in
the European and North American regions.

Eliminating Hazardous • Totally eliminating chlorine-based
Substances andorganic solvents (using a substiReducing
tute for dichloromethane)
Environmental Risk

• We reduced the consumption of this solvent
but were not able to completely stop using it
for recycling defective lenses.

Reducing Waste• We will control the use and consumption of this solvent and simultaneously
continue our efforts to reduce this fur-

Reference
Pages

In Harmony with the Environment• Determination and enforcement ofDeveloping the
packaging materials improvement
3Rs for Packaging
plan
Materials

P23-26

P32-33

P34-35P30

Eco-management (Intensifying the promotion of global environmental management)
Priorities

Goals

PLAN

Assessment

DO

CHECK

Future Programs

ACT• We started to hold in-house law and regulation
liaison meetings.

• We will continue to hold law and regulation liaison meetings.

• Panyu Plant in China received ISO 14001 certification.

• Olympus Optical Technology Philippines, Inc. is expected to obtain ISO
14001 certification.

• Improving the environmental Web
site and Environmental Reports• We redesigned our Web site.

• We will continue to make improvementson our Web site.

• Exhibiting at eco-exhibitions outside the company• We are continuing to publish our Environmental Reports in Japanese, English, and Chinese.

• We will publish CSR reports (in Japanese, English, and Chinese).

Developing Global • Strengthening the system for dealing with laws and regulations
Environmental
Management• Expanding ISO 14001 certification
to the entire Olympus Group
Improving
Environmental
Communication

Actual Results

Reference
Pages

P39

P46-47• We exhibited at Eco-Products 2004.
* To strengthen its environmental management, the Olympus Group plans and executes the PDCA

-conscious measures.

Olympus Corporate Social Responsibility Report 2005

37

Reinforcing of the Environmental Management System
Environmental load is generated by corporate activities.
In Olympus, all employees are making efforts to efficiently and effectively
reduce environmental load.

Enhancing the Olympus Corporation
Environmental Management System■ Environmental Promotion System

Strengthening the top management review

In Harmony with the Environment

Olympus strives to promote company-wide environmental activities under the exclusive control of the president. The Olympus
Corporation Environmental Management System is run by anorganization consisting of the director responsible for environmental affairs, the Corporate Planning Division, the Risk
Management Bureau, the Olympus Group Environment
Committee, the Facility Environmental Affairs Administration
Meeting, and the Olympus Group Environmental Secretariat.
Each branch, group, center, and facility addresses environmental issues under the Olympus Corporation Environmental
Management System, reflecting top management policy.
Environmental management organizations are formed at thebranches, groups, centers, and facilities as well as at companies
incorporated overseas, corresponding to the Olympus Corporation
Environmental Management System.
In FY2003, Olympus received ISO 14001 certification for the
Olympus Corporation Environmental Management System (box atright). In FY2004, Olympus developed its Basic Environmental
Plan 2005 and the FY2005 President’s Direction. In addition, we
have intensified the management review conducted by the president and the director responsible for environmental affairs on the
progress of the plan and the results of internal environmental
audits on a company-wide basis to achieve continuous improvement. In the meantime, the Risk Management Bureau prepared arisk mapand strengthened its environmental risk management
mechanism.
Risk Map: The risks faced by the enterprise are plotted in two dimensions
by plotting the potential impact of each risk on the vertical axis and the possibilityof occurrence on the horizontal axis.

Risk Management
Establishing voluntary standards that are stricter
than the legal restrictions
We investigated the environmental facilities of the Shenzhen Plant
and Panyu Plant in China twice in FY2004, in May andNovember, mainly confirming the management conditions anditems monitored. We carried out environmental assessments anddiagnosed the environmental risks. Naturally, we must observe all
the legal restrictions in each country, and from the global viewpoint we are establishing even stricter voluntary standards for
Olympus to make further improvements on facilities.

38

Olympus Corporate Social Responsibility Report 2005

Board meeting

PresidentInternal Environmental
Auditors
Corporate Planning
Division
Risk Management
BureauDirector Responsible
for Environmental Affairs
Olympus Group
Environmental Committee

Olympus Group
Environmental
Management Division(Olympus Group
Environmental
Secretariat)

Deliberates on important
items related to thecorporate environmental
measures and implements
those measures.

Responsible for promoting
environmental
management for the entire
Olympus GroupOlympus Group
Environmental
Secretariat Meeting

Eco-products
Approval Committee

Facility Environmental
Affairs Administration
Meeting

Conducts standards
setup and approval of
Eco-products

Develops company-wide
environmental policies anddeliberates on priorities andtasks for each facility.

Facility Environmental
Secretariat Meeting

The Olympus Corporation
Environmental Management System

Branches, Groups,
Centers Environmental
Management
Organizations

Local Overseas
Subsidiaries
Environmental
Management
Organizations

Facility Environmental
Management
Organizations

Personnel with Environmental
Management Qualifications
Setting up in-house standards to educate legallyqualified personnel in environmental management
Each facility sets internal standards and trains its staff in environmental management and labor health and safety in order to ensurethat it has sufficient legally-qualified staff members available inhouse.
■ Number of Personnel with Environmental Management Qualifications
Number of LegallyQualified Personnel

Number of Personnel
with Relevant Duties

Number of Personnel
Satisfying Internal Standards

Air

34

16

2

Water Quality

89

29

12

Noise

15

5

0

Vibration

12

3

0

Senior Pollution Control Managers

1

0

0

Managers for Industrial Waste
Requiring Special Treatment

62

13

13

Qualification

Pollution Control
Managers

Company-wide Environmental Education

Increase in the number of ISO 14001-certified branches

Follow-up training for the revised ISO 14001 also held

The Olympus Group recognizes that environmental management
systems provide the basic procedures for promoting environmental management and has been actively constructing its own environmental management system.
The Ina Plant obtained Olympus’ first ISO 14001 certificationin February 1997. Subsequently other major Olympus development and production facilities and affiliated logistics and sales
companies in Japan have obtained ISO 14001 certification by theend of FY2003. Major companies overseas involved in production
have also obtained certification. The Panyu Plant in Guangzhou,
China, obtained certification in October of FY2004, and theOmachi Branch of Olympus Opto-Technology Co., Ltd., obtained
certification in January 2005. Of our 17 development and production facilities in Japan and overseas, 15 facilities have obtained
certification. The facilities already certified have a total of about
19,500 employees, about 64% of all employees in the Olympus
Group.
Each facility is producing good results regarding environmentally conscious products, the prevention of global warming, andthe creation of acirculation-oriented
society by the
improvement activities carried out
through the environmental management system.

Olympus provides environmental education to all employees, bothin Japan and overseas. We tailor its content to suit the employees
being educated and the type of business at each facility, so thatthey can receive the type of education that matches their roles.
ISO 14001 internal auditor training has already entered its 7thyear, and 28 lecture courses have been held, participated in bymore than 600 employees. Also, for the revised edition of ISO
14001:2004, we provide follow-up training for those employees
who have previously participated in lecture courses, mainly covering important points in the revision and increasing the trainees’
competence.
In addition, we give seminars on environmentally conscious
products for employees in design and development posts and for
employees in business operation and sales posts. (See page 27)
A series of articles on the environment are being published in
our in-house magazine, and this has now entered its second year.
We have been making efforts to promote in-house educational
activities by presenting specially-edited feature articles on environmental reports,
the Olympus Ecoforum, seminars on
environmentallyconscious products,
etc.

In Harmony with the Environment

ISO 14001 Certification Obtained

ISO 14001:2004 follow-up Training

Receiving Certification at the Panyu Plant

Olympus Eco-forum■ Olympus Group ISO 14001 Certification (as of the end of March 2005)
Facility

Location

Date ofcertification

Ina Plant

Ina-shi, Nagano

Tatsuno Plant/Okaya Olympus
Co., Ltd.

Tatsuno-machi, Kami-ina-gun, Nagano

Hinode Plant

Hinode-machi, Nishitama-gun, Tokyo

Aizu Olympus
Co., Ltd./Opnotech Co., Ltd.

Aizu-Wakamatsu-shi, Fukushima

Shirakawa Olympus Co., Ltd.

Nishigo-mura, Nishishirakawa-gun, Fukushima

October 1998

Aomori Olympus Co., Ltd.

Kuroishi-shi, Aomori

November 1998

Olympus Opto-Technology Co.,
Ltd., Sakaki Branch

Sakaki-machi, Hanishina-gun, Nagano

Mishima Olympus Co., Ltd.

Nagaizumi-cho, Shunto-gun, Shizuoka

Olympus (Shenzhen)
Industrial Ltd.

Shenzhen, China

Technology Research Institutes(Hachioji)

Hachioji-shi, Tokyo

Olympus Winter & Ibe GmbH

Hamburg, Germany

KeyMed (Medical & Industrial
Equipment) Limited

Southend-on-Sea, United Kingdom

Olympus Logitex Co., Ltd.

Kawasaki-shi, Kanagawa

November 2003

The Olympus Corporation
Environmental Management
System

2 Nishi-Shinjuku, Shinjuku-ku, Tokyo
Hachioji-shi, Tokyo

January 2004

Olympus Diagnostica GmbH
(Irish Branch)

Clare, Ireland

KS Olympus Co., Ltd.

3 Nishi-Shinjuku, Shinjuku-ku, Tokyo

Olympus (Guangzhou)
Industrial Ltd.

Panyu, Guangzhou City, China

Olympus Opto-Technology Co.,
Ltd., Omachi Branch

Omachi-shi, Nagano

Official commendations for excellent environmental
programs

February 1997
February 1998
July 1998
October 1998

December 1998
June 1999
September 1999
March 2000
May 2001
March 2002

We held the Third Eco-forum for our employees over two days on
September 14 and 15, 2004, at the Technology Research Institutes(Hachioji). The Eco-forum included lectures by speakers fromoutside the company, presentations and official commendations
for excellent environmental programs, reports from overseas facilities, and a global environmental meeting to discuss measures forcoping with legal restrictions. We will increase motivation andaccelerate the sharing of information
throughout
thecompany throughfuture Eco-forums.

January 2004
March 2004

Global Environmental Meeting
October 2004
January 2005

Olympus Corporate Social Responsibility Report 2005

39

Quantitative Appreciation of Influences of Business Activities andEnvironmental Preservation Activities
It is important to quantitatively determine the resources input into corporate activities
and the values created by these activities.
Olympus’ aim is to efficiently minimize environmental load by suppressing wastefulness.

Input

In Harmony with the Environment

P32
Energy• Electric power ............... 99,900,000kWh• City gas ................................ 800,000m3• LPG ...................................... 110,000m3• Heavy fuel oil .............................. 4,139kl• Kerosene ....................................... 277kl• Diesel fuel ....................................... 74kl
• Gasoline .......................................... 47kl
Total 1,203 TJ

Raw Materials andSub-materials for Products

Research andDevelopment Processes• Metals ................ Steel, aluminum, brass• Optical plastic• Plastic ............... ABS, PC, polyethylene,
polypropylene• Chemicals and acids ..... Alkalis, solvents, paint

Discharge
P32
CO2 Emissions• Electric power.. 37,633t-CO2• City gas ............. 1,691t-CO2• LPG ..................... 678t-CO2• Heavy fuel oil .. 11,216t-CO2• Kerosene ............. 691t-CO2• Diesel fuel ............ 195t-CO2• Gasoline portion .. 110t-CO2
Total 52,244t-CO2

Office Supplies• Copy paper ...................................... 137t
Other Utilities• Piped water .......................... 200,000m3• Ground water .................... 1,700,000m3
Total 1,900,000m3

Contents of Major Programs

Environmental
Preservation
Costs

Total

Economic Effects ofEnvironmental Preservation
Activities

CO2 Emissions from
P33
Non-energy Systems• HFC, PFC ......... 5,493t-CO2

Boiler Air Pollutants• SOx .............................. 5.3t
• NOx .............................. 42t
Discharge into Water Systems• BOD ............................. 5.7t
Amount of Discharge• Discharge into public
water areas .... 1.339 mil. m3• Discharge from sewage............................0.148 mil. m3

Logistics Process
Consigned Intermediate
Waste Treatment
P34• Wastepaper ................... 88t• Waste plastic ................ 0.1t
• Waste metals and glass..0.1t• Sludge ............................. 3t• Waste acids ..................... 1t• Waste alkalies ............ 0.01t• Waste oil ......................... 5t• Others ............................. 7t
Total 104 t

Emissions of PRTR-listed
Substances into the Air
P30• Toluene ......................... 6.8t
• Xylene .......................... 3.6t
• Ethylene oxide .............. 0.8t
• Ethylbenzene ................ 0.6t
• Dichloromethane .......... 0.3t
• Others .......................... 0.1t
Total 12.2 t

In Upstream Costs*1

R&D Costs

Costs Inside Business Area*2

Environmental consciousness
in purchasing and procurement
activities

Development of
Eco-products / Eliminationof hazardous substances

Prevention cost of public nuisance

Global environmental
conservation costs

Resource circulation costs

Green purchasing /Green procurement

Development of
Eco-products / Research on
hexavalent-chromium-freeand lead-free materials

Sump pump repair /Installation of liquid-proof
embankments

Improvement of
air conditioning
and condensers

Circulatory utilization of water
resources / Installation ofconcentrators
P34-35 • WEB

Detailed Content Reference Pages P28-30
Amount of
Capital Investment
Amount of Costs

Production Process

P23-26

P34-35

P32-33 • WEB

7.0

73.3

12.5

216.0

37.0

81.8

649.7

178.7

39.8

237.9

88.8

723.0

191.2

255.8

274.9

Domestic green purchasing:
32.3 (previous year: 28.8)

Total sales of Eco-products Cost of lawsuits for domestic
pollution and complaints: 0(Group consolidated): 2,224 environmental
Penalties for domestic environmental
pollution and complaints: 0

Energy cost: 1,783(compared to previous year:
2.41%)

Cost of consigned intermediate waste
treatment: 14 (compared to previous year: −26%)
Income from sales of recycled valuable
resources: 34 (compared to previous year: 70%)

CO2 emissions: 83,032 t-CO2(compared to previous year:
0.42%)

Volume of waste consigned for intermediate
treatment: 173 t-CO2 (compared to previous
year: -46%)

Domestic green purchasing rate: 35.8% Total sales results for
Eco-cars as percentage of domestic
Eco-products (Group
Environmental Preservation company vehicles: 55.8%
consolidated): 61,395 units
Effects
Domestic suppliers’ environmental
measures survey: 98.7%

Domestic environmental pollution
lawsuits: 0 cases
Complaints from residents insurrounding areas in Japan: 0 cases*1 In Upstream Costs: Costs related to programs for controlling the environmental load of raw materials before inputting resources and carrying out business activities*2 Costs Inside Business Area: Environmental preservation costs for controlling the environmental load generated by business activities*3 In Downstream costs: Costs related to programs for controlling the environmental load generated and discharged after products have been produced as the result of business activities*4 Cost of Control Activity: Costs related to programs that indirectly contributes to controlling the environmental load from business activities and management activities for environmental preservation

40

Olympus Corporate Social Responsibility Report 2005

Environmental Impact of Olympus
Business Activities
Reducing the environmental load in all processes

Olympus’ material flow
1) The scope of the data concerning input, discharge, and recycled items* is the major topic in thisreport.
* Recycled items include the total for in-house circulation, in-house reduction, valuable resources,
and recovered resources.
2) Concerning production, production bases in China (Shenzhen, Panyu) are included in the major
subject scope of this report.

Environmental Accounting Used to Gain a
Quantitative Understanding of Environmental
Preservation Costs and Effects

Service Process

Production
Major Products• Digital cameras ......... 1,496t• Film cameras .............. 598t
• IC Recorders ............... 242t
• MO disk drives .............. 62t• Endoscopes .............. 1,359t• Microscopes ................ 648t
• Clinical analyzers ......... 676t
• Measuring instruments..865t• Printers ..................... 1,124t
Total 7,070t

Promoting effective and efficient environmental management

P31
Packaging Materials• Cardboard ................ 1,953t• Paper .......................... 416t
• Plastic ......................... 294t
• Metal ............................... 0t• Glass ............................... 2t
Total 2,665t

Olympus adopts environmental accounting as a way to obtain
quantitative data on environmental preservation costs and theeffects (economic effects and environmental impact) accompanying environmental preservation. In FY2004, programs (see pages
23–26) for environmentally conscious products and green procurement (see page 29) moved forward throughout the entire
Group, and R&D costs (up about 1.5 times on the previous year)
and upstream costs (up about 3.3 times on the previous year)
increased greatly. We also introduced preventive environmental
consciousness (see page 33) and completed a new building at the
Tatsuno Plant, incorporating about 137 million yen worth of energy-saving measures. To be in line with the revised Environmental
Accounting Guidelines (FY2005 edition), we are reviewing company-wide data collection methods and systems. In future, we will
use environmental accounting more effectively, will discover andshare effective and efficient environmental activities within ourgroup, and promote environmental management.

Recycled Waste P34• Food waste .................... 48t• Paper and cardboard ... 846t
• Plastic .......................... 510t
• Waste metals and glass .. 519t
• Sludge ......................... 192t

• Waste acids ................. 385t
• Waste alkalies ............. 287t
• Waste oil ...................... 229t
• Wood chips .................. 152t
• Others ........................... 91t
Total 3,259t

In Harmony with the Environment

Sales Process

Olympus’ business activities affect the global environment in various ways. The development, production, and logistics processes
have the greatest impact.
Olympus is aiming to reduce the environmental load of eachprocess activity by clarifying the material flow (the movement ofgoods) from the input of resources, through the production andshipping of products, to the discharging and recycling of waste.
Even though the production weight of products in FY2004
increased by about 12% over the previous year, cardboard consumption was reduced by about 1.2%, paper consumption by
about 12%, and plastic consumption by about 8%. This indicates agreat effect of environmental consciousness in product packaging(see page 31).

Unit: 1 million yen* Aggregation period: April 1, 2004, to March 31, 2005
In Downstream Costs*3
Additional costs for recovery of products,
recycling, and development of lowenvironmental-load containers andpackaging

Environmental Management Activity and other Costs* Environmental preservation cost aggregation scope:
One production base in China (Shenzhen) has been
added to the major subject scope of this report.

Costs of Social Activity*6

Cost of control activity*4

Costs for damaged
environment*5

Support for environmental
improvement and activities
for society and regional
areas

Reduction of containers and packaging /Product (endoscope film) recovery &reuseManagement, operation, andpublic relations for the environmental management system

No programin FY2004

Participation in tree-planting
and cleaning activities inregional areas

P31 • P34-35

P38-39

-

P48-49Total* Amount of capital investment during the period = 46,127
million yen in total, R&D cost = 47,720 million yen in
total
Olympus’ environmental accounting
1) Starting with the FY2004 portion, calculation ismade with reference to the Environmental Accounting Guidelines (FY2005 edition).

-

0.0

0.4

0.0

0.2

346.4

44.8

330.0

0.0

10.8

1,573.4

44.8

330.4

0.0

11.0

1,919.8

-

-

-

-

-

-

-

-

2) Starting with the FY2004 portion, the proportions ofcost and depreciation expenses that cannot beclearly separated into those for environmental preservation and those for other purposes are not calculated, and their totals are not included for the purposes of environmental accounting.

-

-

-

3) See our Web site and specific detailed reference pages concerning the subject scopes of economic effects and environmental preservation effects.

Effect of reusing endoscope film: 58.7

Reused endoscope film: 11t
Consumption of packaging plastic: -8% compared to previous year
Consumption of packaging paper: -12% compared to previous year
Weight of products produced in FY2004:
increased by 12%

ISO 14001 certified facilities:
15 (out of a total of 17 production
and development bases)
Number of employees in certified
facilities: About 19,500*5 Costs for Damaged Environment: Costs related to programs for restoring environmental damage caused by business activities*6 Costs of Social Activity: Costs of extensive environmental preservation done as a contribution to society*7 Estimated effect: Estimated profit and expense based on the calculation of the hypothetical results of environmental preservation activities carried out;
for instance, the cost of avoiding environmental restoration expenses, avoiding the need for payment of compensation for damage from environmental
pollution accidents prevented by capital investment, and expenditures to prevent environmental pollution4) Among the economic effects accompanying environmental preservation, effects for which there is insufficient data to determine an estimated effect*7 havebeen excluded.
5) See our Web site for environmental accountingchanges and details in.

Olympus Corporate Social Responsibility Report 200541

Social Involvement
Social involvement, as explained in our “Social IN” management philosophy, is a manifestationof our commitment to act as a responsible member of society. Olympus admires and respects
the culture of each nation and region, understands the needs of the people in each area, andcarries out business for the benefit of society.

Contributing to Local, Regional, and International Societies
Olympus believes it imperative to carry out business while always keeping in mind how
to be of service to society if it wishes to be favorably accepted and chosen by stakeholders
as a member of the international society.
Social Involvement

Social Contribution Policy

Bio Imaging Laboratory

Active support in the field where our management
resources are effectively used

Jointly established with the Japanese Foundation forCancer Research

Olympus endeavors to bring about a healthy and comfortable life
to people by offering new value to society through its business. In
addition, we would like to contribute to society in various ways
other than business by using our managerial resources, such as our
know-how and manpower. As a demonstration of this desire, weestablished the Social Contribution Policy in March 2005. The
policy focuses on four areas of social contribution, namely, medicine and health, culture and arts, the global environment, and natural science. It also encourages every employee to actively participate in volunteer activities.

In February 2005, Olympus set up the Olympus Bio Imaging
Laboratory inside the Cancer Chemotherapy Center, a joint effort
with the Japanese Foundation for Cancer Research. Equipped withsuch state-of-the-art research equipment as laser cofocal microscopes and monomolecular fluorometric analyzers, the laboratory
is engaged in cancer-related research, including the cellular-levelevaluation of the effects of anticancer drugs and clarification of
the cancer metastasis mechanism.

Donating Endoscopes to Developing Countries
Supporting the growth of and improvements inmedicine in developing countries
Olympus has donated endoscope equipment to hospitals in developing countries since September 2003, one hospital a year, as acosponsor of the Outreach
Program operated by theWorld Organization for
Digestive Endoscopy and theWorld Gastroenterology
Organization. In its first yearof donating equipment,
Olympus donated to Eva
Peron Education Hospitalin Argentina. In 2005,
Olympus will donate to
Yalgado Ouedraogo University Hospital Center in
Burkina Faso, Africa.
Endoscopic Video Information System“EVIS EXERA”

42

Olympus Corporate Social Responsibility Report 2005

Bio Imaging Lab

Japanese Foundation for the Research andPromotion of Endoscopy
Promoting endoscopic research in medicine
The Japanese Foundation for Research and Promotion ofEndoscopy was established to encourage and promote research on
endoscopic medicine, thereby contributing to the development of
medicine and improvement of mankind welfare. Launched with adonation from Olympus in 1982, the foundation was officiallyestablished with the approval of the Ministry of Education (currently the Ministry of Education, Culture, Sports, Science andTechnology). The foundation provides financial support to a variety of research programs on endoscopy, with 604 receivers of
research support and 1,165 receivers of support for meetings andseminars up to FY2004.

A Day in the Life of Africa

Natural Science Observation Contest

Olympus, with its excellent digital imaging
technology, collaborates with the UN.

Nurturing children’s love of exploring science©Nick Keish from “A Day in theLife of AFRICA”

Wakuwaku Science Workshop

This contest provides elementary school and junior high school
children with opportunities to learn the wonders of nature andanswer questions about the things happening around them.
Students entering the contest submit, for example, the research
they were assigned to do as homework over the summer vacation.
In FY2004, over 8,000 students entered the contest, the highest
ever, and an award ceremony and an exhibition of outstanding
submissions were held at the National Museum of Emerging
Science and Innovation in Tokyo. Olympus has been a cosponsorof the event since its start in 1960 as the Microscope Observation
Contest. We are told that children who were awarded in past contests are now fully-fledged scientists.

Supporting WWF with Nature PhotoCalendarsOver 20 years of support
Olympus cameras are loved by renowned animal and nature photographers. Nature Photo Calendars is the result of a unique collaboration with those photographers to support WWF.
Olympus publishes Nature Photo Calendars and donates them to
WWF Japan so that the international organization can use theprofit from their sales toward the preservation of nature. The 2005
calendar uses valuable photos that photographer Mitsuaki Iwago
took of wild animals on the verge of extinction in the Qin Ling
Mountains in China for about a year with an E-1 digital singlelens reflex camera. The calendar is an environment-friendly nonpolluting product made entirely of recycled paper and does notuse a PVC wall-hanging folder.

Social Involvement

In February 2002, approximately 100 world-famous photographers armed with digital cameras dispersed all over Africa to photograph African people in a single given day. Olympus joined thisspectacular event as a major sponsor by supplying digital cameras
and other photographic equipment to participating photographers.
Their work was collected in a photographic book, with all profits
from its sale donated to the AIDS Education Fund in Africa.
Olympus later held photo exhibitions in various parts of the worldusing all the pictures taken and donated the money generated by
the exhibitions to the UN Millennium Development Target.
In March 2005, Olympus cosponsored a special photo exhibition, A Day in the Life of Africa—How African Women Live, atthe UN Gallery in Tokyo in commemoration of International
Women’s Day (March 8) with international agencies, including the UN
Information Center in Japan, as mainsponsors. Olympus also cosponsoreda special exhibition, Toward
Achievement of the Millennium
Development Target, at the UN
Pavilion in the Aichi Expo in April
and May of this year together with
the UN Information Center.

Science lessons with volunteer staff
The intention of the Wakuwaku (“exciting”) Science Workshop is
to let children feel the joy of science. Volunteer staff from
Olympus joined the Wakuwaku Project to take the initiative inholding seminars for local elementary school and junior highschool students. Children will learn the joy of science, particularly
the workings and wonder of light, one of Olympus’ specialty
fields, through hands-on experience. Olympus supports this volunteer activity by supplying materials for the experiments. The
workshop was held three times in FY2004 and had some 700 participants.

WWF, or the World Wide Fund for Nature, is the world’s largest natural protection organization. It is active in approximately 180 countries and has the support of over 4.5 million people. WWF was founded in 1961 to protect endangered
wild animals around the world. Currently, WWF is engaged in protecting nature ina wider sense with the inclusion of environmental problems, such as global
warming and toxic chemical pollution, and the promotion of the sustainable useof resources obtained from nature. Its ultimate goal is to realize a new society
where people and nature can coexist harmoniously.

2005 Calendar

Wakuwaku Science Workshop at an elementary school

Olympus Corporate Social Responsibility Report 2005

43

Family’s Day
Strengthening the parent-child relationship

Olympus Europa Science for LifeFoundation (Europe)
Supporting research in the life science field

Olympus cosponsors Family’s Day (the fourth Sunday of July)
proposed by photographer Bruce Osborn. On Family’s Day in
2004, Olympus held the Family Photo Contest and a photo exhibition, hoping that many people will feel anew the warmth andimportance of the parent-child relationship.

Supporting the Victims of the Niigata Chuetsu
Earthquake and Sumatra-Andaman Earthquake
The matching gift method brings out monetary donations

Social Involvement

Olympus asked its employees to give monetary donations to thevictims of the Niigata Chuetsu Earthquake and Sumatra-Andaman
Earthquake. The amount of money equal to the collected donations was added by Olympus for a total of approximately 3 million yen for the Niigata Chuetsu Earthquake victims and around18 million yen, with the efforts of foreign local corporations
included, for the Sumatra Earthquake victims.

Supporting Art and Cultural Activities
Focusing on visual and musical activities
Olympus cosponsored the following events in 2004 as part of its
support of art and cultural activities:
Event

Venue

Date

Theo Angelopoulos Film Festival

Tokyo

July 2004

Saito Kinen Festival Matsumoto

NaganoAugust to September

Tokyo

October

Vienna Stateopera in Japan
Mineko Orisaku Photo Exhibitionin Shanghai

Shanghai

October

Denis Morris Photo ExhibitionTokyo

December

Robert Capa Photo ExhibitionTokyo

February 2005

Cooperation with Local Communities
Olympus plants actively involved in local activities

Information on
Group Companies

The Olympus Europa Science for Life Foundation was founded in1988 as an NPO committed to the promotion of science andresearch, especially in the fields of endoscopic diagnosis and therapy, microscopy, clinical chemistry, and scientific photography.
The fund supports several research projects and bestows annual
awards and grants. One of these is the Olympus Award for
Computer Science in cooperation with the German Association
for Pattern Recognition (DAGM). Monetary donations from
Olympus to the fund have amounted to approximately 1.28 million euro (about 170 million yen) since the foundation of the fund.

Olympus Innovation Award (USA)Supporting innovative education
Information on
Group Companies

Education is one of the main areas of Olympus America’s social
contribution. Its efforts in this area include supporting image education curricula for all levels, from elementary schools throughhigher education, as well as a number of other programs.
For example, in cooperation with the National Collegiate
Inventors and Innovators Alliance (NCIIA), Olympus America
launched the Olympus Innovation Award in 2004, with the inaugural awarding ceremony held in March 2005. The award is given
to educators who have promoted or demonstrated innovative
thinking in education in the United States that helps to develop a
new generation of entrepreneurs and inventors. The first winner isProfessor Stephen Nichols from the University of Texas at Austin,
who was recognized for his interdisciplinary education, research,and service programs that expanded opportunities for student
entrepreneurship.
Additionally, in 2004, as part of its efforts to promote innovation as a virtue of American society, Olympus America sponsoreda Public Broadcasting Service series called They Made America,
an educational TV program that examines America’s evolution
and explores its innovations over two centuries.

Information on
Group Companies

Olympus and its affiliated companies are actively involved inlocal activities, including special events and cleaning campaigns.
Aomori Olympus Co., Ltd., for instance, regularly takes part in acleaning campaign targeting the floodplain in the city of Aomori
and has been an active corporate member of the Kuroishi Neputa
Festival for over 25 years. Olympus Ina Plant uses neputa (a large
lantern designed like a parade float) handed down by Aomori
Olympus in the Neputa Festival and participates in the Ina
Festival every August. Over 200 employees of the plant join thefestival and neputa float parade and enjoy dancing. There are citizens of Ina who always look forward to the performance ofOlympus Ina Plant every summer. The plant has participated in
the Ina Festival for over 20 years.

44

Olympus Corporate Social Responsibility Report 2005

KeyMed wins Queen’s Award for Enterprisein Sustainable Development

Information on
Group Companies

KeyMed Ltd., a British subsidiary of Olympus, won the Queen’sAward for Enterprise in Sustainable Development on April 21, 2004,
for its achievement in sustainable development in business throughimprovements in employee education and motivation, local contributions, and mitigation of environmental loads. KeyMed is highly reputed for its active involvement in charity events and local community
development projects.

Olympus President Kikukawa awarded
Class 2 Medal by Slovak RepublicInformation on
Group Companies

Olympus President Tsuyoshi Kikukawa was awarded the Cross of
the President of the Slovak Republic, Second Grade, by the
Slovakian government in June 2004. He was the first Japanese to begiven this honor. The major reason behind this award was the highreputation of Olympus C&S, a local Olympus corporation in Slovakia,
for its many years of contributions, including the development of techniques to prevent and treat alimentary cancer and other diseases
using endoscopy as well as its support of the Colon and Rectum
Cancer Prevention Program, a Slovakian national program.

Promoting Information Disclosure and Interactive Communication
It is very important for Olympus to let people know what it is thinking about and doing
and learn what people want from it. Interactive communication is an essential tool for us
to get involved with the community and provide value to society.

Information Disclosure Policy

Corporate Advertisements and Events

Providing the right information at the right time

Active Communication

Method of Information Disclosure
Providing information to as many people as possible
Depending on the level of importance or content, Olympus discloses information using optimal means, such as news releases,
publicity events, news conferences, and Web sites.
With the recent spread of the Internet, the role of Web sites
has never been more important in providing information on corporations. Olympus is therefore constantly improving its Web site tobetter send information to consumers. Any particularly important piece of information about
the Company will be swiftly put
on its Web site after official disclosure as per the insider deal
regulation
so that the information can be accessible to as
many people as possible.
Olympus’ Official Web site
http://www.olympus.co.jp/en/

Companies should avoid unofficially and prematurely disclosing any important information that may affect their stock value. Such disclosure of important
information may provide advantages to those who receive the information before
the general public does (insider trading), and any company that discloses information in this manner is obligated to swiftly disclose the same information to the
public. Such critical information is deemed to be disclosed in accordance to theinsider trading regulation if it is put on the Timely Disclosed Information Access
Service jointly operated by the Tokyo Stock Exchange and others.

In addition to ordinary advertisements and promotional events,
Olympus communicates with the general public by sending information on the technologies and businesses of Olympus as well asother useful information through its Web site, advertisements, andspecial events.
Onaka-kenko.com Heath Promotion Web Site

The purpose of this Web site is to inform people of the importanceof abdominal healthcare and prevention and the early detection ofserious stomach and intestinal
diseases. The Web site provides
useful health-related information, including an easy-toperform “medical check of theabdomen,” inspection and treatment methods by organ and disease, the roles of endoscopy,
and other important data related
to the abdomen and endoscopy.
Onaka-kenko.com

Social Involvement

Olympus discloses appropriate corporate information in the right
way at the right time so that the company’s shareholders and customers can correctly understand it and will find it trustworthy
according to its information disclosure policy. Olympus has established an internal rule on information disclosure, including procedure, based on the information disclosure policy. Whenever we
disclose information, it is particularly important to comply with
relevant laws and ordinances and stock transaction regulations
effective in countries where we or our subsidiaries and affiliates
do business and are listed as well as protect the private information of stakeholders and respect their rights.

http://www.onaka-kenko.com/

Corporate Advertisements in Newspapers and Magazines

There are things that cannot be fully conveyed to the consumer,
such as the technology or management
philosophy behind our products andservices. Such messages are sent to theconsumer through corporate advertisements placed in newspapers and magazines.
One such advertisement placed innewspapers, called the Optical
Technology Series, won a few advertisement awards, including the 53rd
Nikkei Advertisement Award and the
Corporate Brand Advertisement
Award.

Optical Technology Series(five-part series newspaper advertisement)
Top: Part 1; Bottom: Part 5

Olympus Corporate Social Responsibility Report 2005

45

Medical Care and Health Forum Karada Expo

Olympus put up an exhibit at the Health and Medical Care Forum
Karada (Body) Exposition, which was sponsored by Nihon Keizai
Shimbun and NHK and held in August 2004 at Tokyo Big Sight.
The exhibits at our booth, which was shaped like a large human
body, provided hands-on experience in endoscopy to visitors.
Many visitors, including parents and children, had a good time
and were pleasantly surprised by the clarity of the endoscope
image or the experience of operating with an endoscope, which issomething they rarely had the chance to observe, not to mention
touch, in their lives.

Eco-Products 2004 Exhibition

Olympus participated in the ecological-products exposition, EcoProduct 2004 Exhibition, held at Tokyo Big Sight in December
2004. Our exhibits included the CX21/31/41 biological microscope, E-300 digital single-lens reflex camera, and IPLEX MX
industrial endoscope as well as introduced major environmental
considerations in our products, such as energy-saving functions,
resource-saving processes, and the use of no hazardous materials.
The environment observation corner, which was aimed at elementary and junior high school students, helped younger visitors learn
the importance of environmental preservation by giving them alecture on the food chain, from microbes in the water to large animals, and then an opportunity to observe microbes in the waterusing microscopes. Children who saw microbes in the water often
shouted with joy!

Social Involvement
Olympus booth at Eco-Products 2004

Visitors enjoying a microscopic view

Olympus booth at the Karada Expo

Olympus Technology Fair 85

In commemoration of its 85th anniversary, Olympus invited its
business partners as well as the media to a technology exhibitionat the Tokyo International Forum in December 2004. Under thetheme Your Vision, Our Future, which is our corporate slogan, theexhibition was intended to explain the kind of future we intend torealize with the technology we have in our specialty fields, i.e.,
imaging, medical care, and life science. We received many comments from visitors. The capsule endoscope, which we had on
exhibit, drew a lot of attention from the industries and the generalpublic in addition to large coverage by many media companies.

Staff giving an explanation of the capsule endoscope

46

Olympus Corporate Social Responsibility Report 2005

Communicating Environmental Issues tothe Local Community
Offering the Environment Leader Training Class
Olympus cooperates with the Environment Division of Hachioji
City by supporting the city’s Environment Study Leader Training
Class. To be specific, Olympus invited the trainees to its
Technology Research Institute at Utsugi for a visit and held a lecture there in February 2005. The trainees made a tour in the facility, visiting and observing the rooftop light intake system, drainage
facility, and refuse sorting system. The lecture was on the current
hot theme, the environment, and Olympus’ efforts in environmental preservation. After the lecture, the trainees and Olympus staff
had an active Q&A session, with questions being asked about thefacility of the institute, Olympus’ approach to the RoHS regulation, etc.

A tour of the Utsugi facility

Lecture on environmental efforts

The Evolution of the Environmental Report
into the Corporate Social Responsibility
Report (CSR Report)
Detailed data and updates are available on our Web site.
■ Circulation of the Olympus Environmental Report 2004

Environmental Report and Web Site for Olympus’
Environmental Information

Olympus has published the Olympus Environmental Report since2000 as a means of communicating its approach to environmental
issues to the general public. Since 2003, we started publishing a
Chinese version of our report in addition to the Japanese andEnglish versions so that a greater number of people around theworld can read it. In 2005, we changed the title of theEnvironmental Report to the Corporate Social Responsibility
Report (CSR Report) to reflect an expanded content that now
includes social and governance data about the Olympus Group.
Our Web site provides detailed information and updates thatcannot be put into the CSR Report.

Japanese

12,000 copies

English4,000 copies

Chinese2,000 copies(as of March 2005)

Recommendations for Improvement—Questionnaire on the Environmental Report 2004

Olympus acknowledged the readers of the Environmental Report 2004 for their comments and opinions, which were incorporated into the
CSR Report 2005.
Results of the Olympus Environmental Report 2004 Questionnaire

No. of respondents: 126 (as of March 31, 2005)

Q1

Q2

In what social capacity did you read the report?

Do you have any comments on the report?

No answer 1%

No answer 2%

Relatively difficult
to understand 2%

Others 12%

Not very difficult
nor very easy 9%

Media 1%
Olympus Group
employees andtheir families 10%

Social Involvement

Olympus Web site
CSR/Environmental
Activities

Olympus
Environmental Report

Customers 19%

Residents in theneighborhood of
Olympus plants 1%

Very easy tounderstand 44%
Relatively easy
to understand 43%

Olympus dealersand suppliers 28%
Students 5%
Environmental staff
of companies 11%
Environmentalorganizations 6%

Difficult to understand 0%

Government and administration 1%
Research and education 5%

Opinions about the Olympus Environmental Report 2004
Recommendations for improvement● I think you should publish CSR reports.

Responses in the Olympus CSR Report 2005
sss Olympus started publishing CSR reports this year to disclose

information on social and economic issues in addition to environmental ones.
● An evaluation by a third party is needed.

Main reference
page

sss Olympus began using a third-party verification this year to

improve the objectivity and reliability of the report.
● It would be better if the important focal points of Olympus’
efforts were written more clearly.

sss The important focal points of Olympus’ efforts are now put● A more detailed explanation on environmental accounting isneeded.

sss On our Web site, we have placed more detailed data on envi-● Notes on special environmental terms would help improvereadability.

sss Explanatory notes on special terms have been added for● Larger fonts and better coloring for graphs are needed.

sss Clear fonts are used for better readability and graph colors

together as a special feature.
ronmental accounting as well as a material flow chart showing
both the cost for each environmental preservation activity anda breakdown of the effects.
greater readability.
have been arranged for easier recognition by those with color
blindness.

P3

P50
P4-7
P20-21

P40-41

P3
EntirereportOlympus Corporate Social Responsibility Report 2005

47

Efforts by Domestic and Overseas Olympus GroupOlympus Group sites within and outside Japan are working hard to protect the environment and contribute to local communities.
An outline of these activities is introduced in the following pages. More detailed data and reports for other locations are shown on
our respective Web sites.

● KeyMed (Medical & Industrial Equipment) Ltd.
KeyMed recognizes that the pursuit of profit alone is an empty
vessel and, together with its employees, tries to put somethingback into the community in a positive way. KeyMed supports
the communitiy in a number of ways, for example, local schools
through practical assistance and road safety programs and local disabled people by contributing to state-of-the-art homes.
Internationally, KeyMed supports the Chernobyl Children’s Project (helping children affected by the Chernobyl disaster) and
Mildway (helping Ugandan children affected by HIV/AIDS). KeyMed encourages managers and staff to engage socially-responsible projects.

KeyMed Group Environment
Manager, Mr. Andrew J. Vaughan

Raising money for a road safetycharity. Employees’ children fromthe day nursery take part in a roadawareness program.

U
.K
n

d

.

e

e

la

G

Ir

rm
a
n
y

in
a

The plaque that describes the protected monument is written in English, Irish, Japanese, and German.

hHuman Resource Manager,
Mr. Liam McGregorC● Olympus Diagnostica GmbH [Irish Branch] (ODI)
In December 2004, ODI switched all utility power to “green
electricity,” which is electric power generated mainly at windfarms around Ireland but also through hydro energy from Scotland. In community based activities, ODI renovated buildingsthat were built at the beginning of the 18th century, using as
many original materials as possible. Also, ODI mounted a plaque for a megalithic tomb adjacent to the ODI building written
in English, Irish, Japanese, and German.

● Olympus Winter & Ibe GmbH (OWI)OWI focused on reducing ethanol, which is used in the special
cleaning of sterile packed HF1_electrodes, one of our important groups.
Based on detailed tests, we were able to double the exchanging cycle of the ethanol without any loss of quality. The
outcome of this is a reduction of approximately 400 kilos (500
liters) of ethanol, which does not need to be purchased and,later on, to be disposed of. In the total consumption of ethanol
in FY2004, we consumed roughly 9% less than in 2003.
1

HF = high frequency

R&D Business, Project Engineer,
Mr. Thomas Reher (left) and Headof Regulatory Affairs, Mr. Bruno
Soltau (right)

48

Olympus Corporate Social Responsibility Report 2005

Cleaning process of HF_electrodes
before sterilization.

Efforts by Domestic Olympus Group (Japanese only) http://www.olympus.co.jp/jp/corc/csr/wdata/
Efforts by Oversea Olympus Group (English only) http://www.olympus.co.jp/en/corc/csr/wdata/■ Technology Research Institutes(Hachioji)■ Olympus Opto-Technology Co., Ltd. (Omachi Brach)■ Olympus (Shenzhen) Industrial Ltd.

■ Olympus Opto-Technology Co., Ltd. (Sakaki Branch)■ Olympus Winter & Ibe GmbH (OWI)■ Hinode Plant■ Mishima Olympus Co., Ltd.

■ Olympus Diagnostica GmbH [Irish Branch] (ODI)■ Ina Plant■ Shirakawa Olympus Co., Ltd.

■ KeyMed (Medical & Industrial Equipment) Ltd.

■ Tatsuno Plant■ Olympus Logitex Co., Ltd.

■ Olympus America Inc. (OAI)■ Aomori Olympus Co., Ltd.
■ Aizu Olympus Co., Ltd.

Shoichi Sano (left) and Hiroshi
Suzuki (right) of the General Affairs
Group

Planting cherry tree saplings in thecompound using the profit madefrom a recycling bazaar

J

a

p

a

n

● Shirakawa Olympus Co., Ltd.
Shirakawa Olympus made efforts to reduce total CO2 emissions and achieved a 4.4% reduction over the previous year’slevel in FY2004 by shifting to inverter fluorescent lamps, introducing hybrid vehicles, and increasing the air piping diameter.
Shirakawa Olympus planted four cherry tree saplings on thepremises using the profit made from a recycling bazaar during
Environmental Week. The company’s local contribution involved donating an abandoned bus to Nishigo village. The village is using the bus for the athletic activities of a local juniorsport club as well as local elementary and junior high schools.

A

m

e

ri

c

a

● Olympus (Shenzhen) Industrial Ltd.
Olympus Industrial accepts visitors from many corporations at
the request of the Environmental Preservation Bureau of
Guangdon Province and the Environmental Preservation Bureau of Shenzhen City. Visitors learn how Olympus Industrial
takes on the task of environmental preservation as a “clean
producing company.” The company also engages in improving
its corporate image among consumers.
The company promotes the enhancement of employees’
environmental consciousness by holding seminars on the disposal of hazardous wastes, ISO 14001 internal environmental
auditor training, and an employee-participated activity to pickup refuse at beaches and mountain trails.

Baofeng Di (left), Ying Luo (center), and Shunqiu Yan (right) of the Environmental
Development Department in the Personnel Supervising Division● Olympus America Inc. (OAI)
National Service Center (NSC)
The National Service Center (NSC) moved ahead towards its
goal of achieving ISO 14001 certification by early 2006. A policy manual and SOPs for specific environmental activities
were developed. Employee environmental awareness andeducation were initiated through specific daily displays on the
NSC’s LCD monitors and on table displays in the cafeteria
showing Olympus’ Environmental Policy. Also, the NSC andthe branches just introduced repair and service activities using
lead-free solder for endoscopes.

NSC Environmental Health, Safety& Facility Senior Manager,
Mr. Pad Kemmanahalli

Table displays in the cafeteria showing Olympus’ Environmental Policy

Employees participate in picking
up refuse at a beach

Olympus Corporate Social Responsibility Report 2005

49

Third-Party Verification Report* See oursite for details.

Purpose of a Third-Party Verification

Up to FY2003, Olympus had written and published the Environmental Report according to its policy of providing a fair and honest
description by in-house writers. In FY2004, a year before publishing the CSR Report, Olympus decided for the first time to be subject to athird-party verification in order to write a report that is correct in content, easy to read, and sufficiently transparent. The independent thirdparty auditor, TUV Rheinland Japan, an ISO 14001-certified organization that checks the environmental promotion capability of Olympus(see page 38), did a review to see if all important information and environmental data were gathered, summated, and disclosed by validmeans and point in the report ; if the report was complete with important information from the guidelines referenced in the CSR
Report ; and if such information was accurately describedin the report.
Validity of the report: Verifying whether any information that is damaging to
the management or company was omitted or judging the importance of the reportwith respect to the necessity of descriptions (i.e., the degree of influence that
false data or omitted data have on the judgment of stakeholders)Completeness of the report: Verifying whether all information from theguidelines referred to in the report was disclosed
Accuracy of the report: Verifying whether the data in the report were accurately measured or calculated

Third-Party Verification and Opinion
The third-party gave us high marks on following contents:• Olympus’ social responsibility concerns are participation in the Global Compact and relevant environmental issues.
• This is due to the fact that the CSR Report explained the problems related to the environment which the Company faced and it showed the mechanism that was put in place to solve the problems.
• Specific data are shown on the Company’s Web site, where stakeholders who are interested in knowing more, can read about it.
It was, however, pointed out that the report failed to clearly indicate concrete vision, policies, and commitments from Olympus on what theCompany should do in the future; indicators for the evaluation and measurement of effects; or quantified or specific information. It was also pointed
out that information on the CSR, which Olympus started to carry out methodically in FY2004, was insufficient, in terms of the quantified data, eventhough Olympus’ policies on and the current situation concerning CSR were explained.
Olympus accepted these evaluation results and decided to promote interactive communication with stakeholders so that their comments can beused to improve future CSR Reports and create and implement better policies and actions regarding CSR.

Interviews concerning CSR Division

50

Olympus Corporate Social Responsibility Report 2005

Field examination and verification ofenvironmental data at Ina Plant

Verification of data at the Environmental
Development Department

History of Olympus’ Environmental Activities
Year

Month

Description

1975

March

Pollution Prevention Committee established

1976

June

Activities during Environment Week held at various plants
Support of WWF (currently the World Wide Fund for Nature) started (with the donation of calendars, for example)

Latter half of the 1970s

Companywide standards and regulations on pollution prevention, waste disposal, and chemical management arranged and improved

1984

Pollution prevention inspection started (carried out until 1996)

April

Latter half of the 1980s

Procedure to put together annual environmental preservation actions of all plants into Environment White Paper and submit it to director in chargeof the environment established

1992

January

Environmental Affairs Office (in charge of companywide environment-related matters) established

AugustOlympus Environmental Charter formulated

1993

July

Specified chlorofluorocarbons and 1,1,1-trichloroethane totally eliminated from use.

1994

December

Polystyrene foam used in small-camera packages totally put to eliminated from use

1995

July

Awarded for the promotion of the cleaning and protection of the Tenryu River (by the Chubu Construction Bureau, Ministry of Construction)

1996

March

1996 Companywide Environmental Basic Plan formulated

June

Companywide Olympus Environment Management Manual formulated

1997

February

Ina Plant obtained ISO 14001 certification; the first member of Olympus Group to do so
Product environment impact assessment started

1998

June

PRTR data for FY 1997 put together and disclosed

October

Tatsuno Plant won Japan Greenery Research and Development Center President Award as a 1998 Good Greening Plant

February

Tatsuno and Ina Plants won 1998 Energy Management Achiever’s Award (from the Chubu Bureau of Economy, Trade and Industry)

July

1999 Companywide Olympus Environment Basic Plan formulated

1999

September Shenzhen Plant, Shenzhen, China, obtained ISO 14001 certification
2000

2001

2002

February

Hinode Plant awarded for superior rationalization of energy by the Kanto Electric Association

March

Technology Research Institutes (Hachioji) obtained ISO 14001 certification; the last among the 12 major plants in Japan to do so

OctoberGreen procurement guideline introduced, and investigation of parts suppliers completed
Guideline for the purchase of products for daily business use formulated

February

Hinode Plant rewarded for superior rationalization of energy by the Kanto Electric Association

March

Use of trichloroethylene in washing process decreased
Use of garbage processor at Tatsuno Plant started

May

Olympus Winter & Ibe GmbH obtained ISO 14001 certification

June

Use of garbage fermentation processor at Technology Research Institutes (Hachioji) started

AugustOlympus Logitex Tokyo Center started up as a core of distribution activity

March

KeyMed (Medical & Industrial Equipment) Ltd. obtained ISO 14001 certification
Recycling center at Technology Research Institutes (Hachioji) started
Companywide Basic Environmental Plan 2002 (Ecology Vision 21) formulated

April

Environmental Development Department established
Environment committees organized (e.g., Olympus Group Environmental Committee and plant managers’ meeting)
Environment site assessment for soil and groundwater started (for domestic production sites)

September In-house Eco Forum launched2003

February

Ina Plant won Director-General of the Agency of Natural Resources and Energy Award

September Five major development and production sites in Japan achieved zero emissions.
Olympus Shenzhen won Clean Production Corporation Award

2004

October

Olympus Logitex won 20th (2003) Logistics Grand Prize from Japan Institute of Logistics Systems

November

Olympus Logitex obtained ISO 14001 certification

December

Olympus participated in Eco Products 2003
In-house certification system for eco-friendly products launched; SZX7/SZ61 stereoscopic microscope and E-1 digital single-lens reflex camera
certified as Olympus eco-products.
E-1 granted Eco Leaf Environmental Label; the first digital single-lens reflex camera to be so granted

January

All environment promotion functions of the Company obtained ISO 14001 certification
Olympus Diagnostical GmbH (Irish Branch) obtained ISO 14001 certification

March

All major plants in Japan achieved Zero emissions.
Sales subsidiary KS Olympus obtained ISO 14001 certification

April

CSR Promotion Department established
KeyMed (Medical & Industrial Equipment) Ltd. won the Queen’s Award for Enterprise in Sustainable Development

June

Environment training for developers started
Illuminations at Olympus turned off in support of environmental campaign for a million people, Light Down 2004 Black Illumination

September Panyu Plant, China, obtained ISO 14001 certification
Olympus Group Corporate Conduct Charter and Olympus Group Code of Conduct announced

2005

October

Olympus participated in UN Global Compact

November

Environment training for sales staff started

March

ISO 14001 (2004) revision response training started

Olympus Corporate Social Responsibility Report 2005

51

CSR Division
Contact

CSR Department

Environmental Development Department

Shinjuku Monolith, 3-1 Nishi-Shinjuku 2-chome,
Shinjuku-ku, Tokyo 163-0914, Japan
Tel.: +81-3-6901-3960 Fax: +81-3-3340-2062
E-mail: csr_info@ot.olympus.co.jp

Kuboyamacho 2-3, Hachioji-shi, Tokyo 192-8512,
Japan
Tel.: +81-426-91-7288 Fax: +81-426-91-7291
E-mail: environ@ot.olympus.co.jp

This report is printed with soybean oil ink via waterless printing on non-woodTake-pulp key G A paper made from 100% bamboo pulp.
Issued August 2005

Olympus Web site www.olympus.co.jp/en/

Next volume scheduled to be issued August 2006
X020-05E1 0805T Printed in JapanThank you for reading the Olympus CSR Report 2005.
Your opinions and comments about the report are very much appreciated.
CSR Division, Olympus Corporation Fax: +81-3-3340-2062

Please answer the following questions concerning the clarity of the report and Olympus’ activities
introduced in the report.

In your opinion, does the report have any good points or points that need improvement?

Rate each item by writing down the appropriate number in the parentheses using the following scale:

Good points

5. Excellent

4. Very good

3. Good

2. Poor

1. Very poor

Under the column marked “Sections,” place a checkmark next to the title(s) you found interesting, if any.

Item
Total

（

） （

）

Message from the
President
Special Features I and II

（

） （

）

Sound Corporate
Activities

（

） （

）

How would you rate Olympus’ attitude toward CSR andwhat is your reason for giving such a rating?

Message from the President
Special Feature II

Creating an Efficient and Sound Management System
Global Group Operation（

Respect for Human
Rights/Working
Environments with
Vitality（

In Harmony with
the Environment

（

） （

）

） （

）

Aiming for the Highest Quality, Which Makes Customers Say,
“Olympus, the choice that couldn’t be more right”
Incorporating the Customer’s Opinions into Products and Services
Having a Closer Rapport with Customers and Responding Faster toWhat They Need

5. Excellent

4. Very good

3. Good

2. Poor

1. Very poor

ReasonHow did you learn about this report?

Respect for Human Rights and Compliance with the Law

Sent by Olympus

Newspaper or magazine

Olympus employee

Other (

Exhibition or seminar

Olympus Web site)

Creating Worthwhile Workplaces（（

OthersSections

Special Feature I

Customer-based
Conduct

Social Involvement

Points that need improvement

Ease of
Evaluation
understanding

（

） （

） （

） （

） （

）

Working to prevent global warming）

Creation of environmentally conscious products
Knowing the distinctive characteristics of the environmental impact of
Olympus products）

Training people to create environmentally conscious products
Consideration to the environment even in the purchasing andprocurement activities
Managing and understanding products and chemicals used in
production processes
Reducing the environmental loads of packaging and logistics from the3R viewpoint）

In what capacity did you read this report?

Promoting efforts to reduce the total volume of waste discharged andrecover resources
Formulation of a basic environmental plan to become an environmentallyadvanced enterprise
Reinforcement of the environmental management system
Quantitative understanding of influences of business activities andenvironmental preservation activities

Customer

） （

）

（

）

Design（）

Research or education

Company employee in charge of the environment

Media

Student

Employee of the Olympus Group or his/her family member

Other ()

Thank you for your cooperation. Please fill in the following information (optional).
Name:
Address:
Contact

Tel.

Fax

Contributing to Local, Regional, and International Societies

Efforts by Domestic and Overseas Olympus Offices and Companies
Third-Party Inspection

No. of pages

Government or administrative employee

Resident in the neighborhood of an Olympus plantE-mailPromoting Information Disclosure and Interactive Communication（

DealerEnvironmental organization

Please send
Please do not send

Check one below.
Too many

Profession, company, section:

History of Olympus’ Environmental Activities

Appropriate

Too few

me the next CSR Report.

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