Editorial Policy
The management of Olympus sincerely regrets the financial
misconduct that came to light in 2011, including the failure
to report losses in a timely manner, and the inclusion of falsified information in financial statements. We are determined
to prevent any recurrence of such problems, and to rebuild
Olympus as a company that can once again earn the trust of
its stakeholders.
Our efforts in the period immediately following the discovery of the problems were reported in a special edition of the2012 CSR Report, which was published in August 2012 under
the title “Rebuilding Trust: The First 100 Days” (hereinafter referred to as “the Special Edition”).
In addition to the Olympus Group’s approach to CSR
and our CSR track record in fiscal 2011, the Olympus CSR

Report 2012 Digest also describes our recent efforts to rebuild
Olympus since the publication of the 2012 special edition.
We will continue to distribute information about our efforts
through CSR Reports and our website. We welcome yourcomments about the content of this report or any other information that we issue.

Contact point
for comments
and inquiries:

Olympus Corporation
CSR Department, Group Compliance Division
Telephone: +81-3-6901-9299
E-mail: csr_info@ot.olympus.co.jp

Overview of CSR and Environmental Information● CSR Report 2012 Digest (this publication)(Published in March 2013)This report was produced as a communications
tool to provide stakeholders with a summary of
information about initiatives and other importantdata for fiscal 2011.
● CSR Report 2012

This report contains comprehensive information, including descriptions of specific initiatives and detailed data.

Digest of
CSR Report 2012(published in
March 2013)

CSR Report 2012(published in
December 2012)

Olympus CSR activity
websitehttp://www.
olympus-global.com/en/csr/(Only in Japanese)
Investor Relations
websiteFinancial reporting

Non-financial reportingWEB

Olympus CSR Report 2012 (Special Edition)
Rebuilding Trust: The First 100 Days
http://www.olympus-global.com/en/common/pdf/csr_report_2012.pdf

WEB

Olympus CSR Report 2012 (Only in Japanese)
http://www.olympus.co.jp/jp/csr/access/download/full-2012/

Reference Guidelines

Organizations Covered by the Report● GRI, Sustainability Reporting Guidelines Ver. 3.1

This report covers Olympus Corporation, its consolidated subsidiaries and affiliated companies as of March 31, 2012. The
Social Report covers Olympus Corporation, Olympus Medical
Systems Corporation, Olympus Imaging Corporation. Other
companies are covered as indicated. The environmental report covers Olympus Corporation, Olympus Medical Systems
Corporation, Olympus Imaging Corporation and their main domestic and overseas production subsidiaries.

● Environmental Reporting Guidelines (2007) of

the Ministry of the Environment, Japan● Environmental Accounting Guidelines (2005) of

the Ministry of the Environment, Japan

Period Covered by the Report
April 1, 2011–March 31, 2012
Note: Corporate rebuilding initiatives implemented after the financial
improprieties (including those in the Olympus CSR Report) andother significant items are covered up to November 2012.

Disclaimer
This report is based on information available at the date of publication. Please refer to timely disclosure data for information
about the current situation.
Some information in this report duplicates the content of the
CSR Report 2012 (Special Edition).

Publication Date (Digest Version)
March 2013
(Previous edition published in November 2011, the next editionscheduled for December 2013)

Olympus CSR Report 2012 Digest

1Corporate Profile/Financial Highlights
Profile of the Olympus Group

Consolidated net sales, operating income, net income

Please visit the investor relations website for updates anddetailed information.
WEB■ Consolidated net sales ■ Operating income ■ Net income(100 millions yen)

14,00011,289Corporate Information
http://www.olympus-global.com/en/corc/

9,808

10,000WEB
Investor Relations
	http://www.olympus-global.com/en/ir/

8,831

8,471

8,485

6,000
1,128

2,000
0

Olympus Corporation-2,000Established October 12, 1919
Head office	Shinjuku Monolith, 3-1 Nishi-Shinjuku
2-chome, Shinjuku-ku,
Tokyo 163-0914, Japan
Activities	Manufacture and sale of precision equipment
Capital	¥48,332 million (as of March 31, 2012)

612

427

546
2007

2008

2009

Others 5.8%

Business Fields

2010

355
-490
2011 (fiscal year)

Consolidated net sales bymarket in fiscal 2011

Segment contributions toconsolidated net sales infiscal 2011

Others 2.5%

MedicalBusiness
41.2%

Information andCommunication
Business
27.0%

384
39

525

-506

Asia &
Oceania
12.7%

Japan
46.9%

Medical Business
Manufacture and sale of medical endoscopes, surgicalendoscopes, endotherapy devices, etc.

Life Science & Industrial Business

15.1%

Imaging Business

40,000Information and Communication Business*
Sale of mobile telephones, etc.

30,000

Other Activities

20,000Development of systems, manufacture and sale ofbiomaterials, etc.

North
America
19.5%

35,77236,50335,37634,391

34,112

2007

2008

2009

2010

2011 (fiscal year)

10,000* The Information and Communication Business was transferred toJapan Industrial Partners, Inc. on September 28, 2012.

Contents

18.4%

Consolidated number of employees

Manufacture and sale of digital cameras and IC recorders

Endoscopes
The Evis Lucera Elite
videoscope system

EuropeLife Science& Industrial
Business
10.9%

Imaging
Business

Manufacture and sale of biological microscopes, industrial
microscopes, industrial endoscopes, non-destructive testing
equipment, etc.

0Biological Microscopes
The BX3 Series

Top Interview………………………………………………………… 3
Building the New Olympus… ……………………………… 7

Digital SLR Cameras
The Olympus OM-D E-M5

SpecialFeatureT he Olympus Response to
the Great East Japan Earthquake………… 15

For Customers………………………………………………………… 19

Olympus CSR	Management Philosophy andCorporate Conduct Charter…………………………… 8

For Suppliers…………………………………………………………… 20
For Employees and Their Families… …………………… 21

	CSR Management………………………………………… 10

For Society ……………………………………………………………… 22

	Improvement of Internal
Control Systems…………………………………………… 12

For the Environment… …………………………………………… 23

Olympus CSR Report 2012 Digest

2

Stakeholder Dialog… ……………………………………………… 25

O LY M P U S CS R R E P O RT 2 0 1 2

An Interview with the Chairman and President

We are united in our determination to go back to the basics of ourbusiness, build a highly transparent governance structure, restore
our reputation, and improve our corporate value.
Olympus has made a fresh start with a new governance structure and is working to regain theconfidence of its stakeholders and improve its corporate value with a new medium-term vision
based on the following three corporate management policies: “Back to Basics,” “One Olympus,”and “Profitable Growth.”

Three Corporate Management Policies for
Rebuilding Olympus’ Reputation

one of the world’s leading innovators in the field of imaging

─ One of the first steps taken by the new managementcompany forward and give them a stake in the company’s

team was to announce a medium-term vision targeted to-

new medium-term vision by making them aware of their roles

ward the creation of a new Olympus. What is this vision,and goals within that vision.

technology.
“One Olympus” will unite the company’s staff to move theIn addition to the shortcomings in corporate governanceand how was it developed?
Sasa: The new management team based its medium-term

that resulted in financial improprieties, the previous manage-

vision on a five-year restructuring plan. The company alsoment team also lost sight of the basics. They invested in areas

adopted three corporate management policies: “Back toother than our core imaging businesses, and manufacturing in

Basics,” “One Olympus” and “Profitable Growth.”

particular, where our real strengths lie, and became obsessed

Olympus was founded to promote the health and well-with expansion. “Profitable Growth” means generating profits

being of Japanese people with the manufacture of its micro-

from the core businesses in which we excel. Without profits,

scopes. It also created the world’s first gastrocamera andwe cannot contribute to society.

waterproof fiberscopes, and more recently has developed

We’ve taken a number of steps to achieve these goals.

NBI*1 optical technology to support high-resolution diagnos-First, we’ve restructured our business portfolio by looking at

tic imaging. Our half-sized camera*2 was also a world’s first.

the company as a whole and identifying the sectors on which“Back to Basics” means taking Olympus back to its roots as

we will focus our efforts.

Olympus CSR Report 2012 Digest

3

Kimoto: The people who actually make products are moti-

our domestic and overseas operations. In an effort to attainvated by their determination to do their very best to create

their direct input, I’ve organized town hall meetings with small

solutions that will benefit customers and the world. Olympus

employee focus group across the company.

has a strong sense of mission and a very ethical approach*1 NBI stands for “narrow band imaging.” Using part of the visual
spectrum that is readily absorbed by hemoglobin in the blood, it
provides high-resolution images and enhanced visual contrast of
the surface structures and fine capillary patterns of mucous membranes, which are normally difficult to distinguish.

to manufacturing. Unfortunately, it failed to achieve a properbalance because of failings in the mechanisms and administration of its board of directors and governance systems.
Another major issue was the spread of indifference among*2 H alf-size cameras take pictures on 35 mm (135) film using an
18 mm×24 mm format that is half as big as a full-size exposure(36×24 mm). These cameras were popular in the days when film
was expensive, since they could capture twice as many images ona single roll.

the employees in the company. When I talk with Olympus
employees, they invariably ask me how these problems
could have developed when they were working so hard to
make the company successful. When a company grows
large, it seems that some employees stop thinking about the

The Starting Point for Social IN Managementcompany as a whole or about what is happening in otherdepartments and business areas. The most─ Can you explain how the “Social IN” management

effective way to remedy

philosophy helps Olympus fulfill its corporate socialt h e s e p ro b l e m s i s t oresponsibilities?

disclose as much infor-

Sasa: The aim of the “Social IN” philosophy is to makemation as possible andcorporate social responsibility an integral part of Olympus’

create an environment

products and business activities. Our Social IN values include,in which that information“INtegrity,” which means maintaining the highest ethicalis accessible to the wid-

standards, “INnovation,” which is the process of creating new

est possible number oftechnological value, and “INvolvement,” which is our commit-

employees.

ment to engaging with and contributing to society. In simple

Sasa: Our most important priority is to create a workplaceterms, our goal is to become essential to society through ourenvironment in which people feel free to speak. We are still atmanufacturing and business activities, so that our employees

the exploratory stage and this is a project that will require aand their families can feel proud of Olympus and its mission

considerable amount of time and effort to accomplish.

to contribute to the betterment of society.

Kimoto: As part of our efforts to improve corporate govern-

─ You’ve spent your entire career in manufacturing,

ance, we’ve appointed a new board of directors on which

haven’t you, Mr. Sasa?

the majority is outside directors. I believe that we’ve brought

Sasa: That’s right. I joined this company because I wanted to

together a group of people with a strong commitment tomake a practical contribution to improving human health andparticipation. I’d say that Olympus now has one of the strong-

medical care. I’ve spent my whole career developing medi-

est boards in Japan in terms of the nature and scope of its

cal equipment. I’ve been able to work in an area that reflects

discussions. We’ve also built a governance framework thatmy own personal beliefs. Like most development engineers, I

is functioning extremely effectively. Our next task is to create

have a very strong commitment to the products that I make.

specific mechanisms to continue to monitor and optimize our

Because development engineers cannot use endoscopes

corporate governance and set them in motion. This may takethemselves, we work closely with doctors. There is a repeateda little time, but I believe that we’re gradually moving forward

process through which we show our prototypes to doctors,

with the changes, including changes in awareness.

listen to their views, and make improvements. We at Olympus

─ Olympus is a leading technology company, whose

feel a very special sense of pride when people tell us that our

workforce aspires to the highest ethical standards.

products facilitated procedures that have helped patients in

Sasa: If we can make the “One Olympus” mission statement

the real world.

a reality, I think we’ll be able to overcome our past difficul-

The basic motivation for manufacturing is the satisfaction

ties. Because I want all of our employees to understand ourthat comes from making things that help people and contrib-

management philosophy and medium-term vision, I makeute to society. To create products that contribute to society,sure that I explain my thinking on every issue. This means

we have to become involved in society, share its values, anda marked increase in both the volume and content of inter-

apply those values to future products. As a result of this proc-

nal communications, but before we can proceed, we have

ess, society provides us with a return in the form of profits.

to ascertain how these communications are received and

The ability to maintain this cycle successfully is the mostunderstood. People in production, development and sales,

fundamental requirement for manufacturing and we must notfor example, will think about things differently––as do staff inbecome preoccupied with the short-term pursuit of profit.

Olympus CSR Report 2012 Digest

4─ I believe that Olympus was an early participant in─ Would you agree that there is also a need for top

the United Nations Global Compact.

management to make strenuous efforts to ensure that

Sasa: Olympus joined the Global Compact in 2004. Because

their messages are consistently understood and applied?

of the firm’s recent problems, Olympus had to withdraw from

Kimoto: Of course. Employees watch what top management

the Global Compact Japan Network. However, we’ve con-is doing, so the things we say are very important. However,tinued our Global Compact activities. I believe that by putting

the impression I’ve formed through visits to factories and of-our “Social IN” philosophy and Corporate Conduct Charter

fices is that messages from top management are not always

into practice, we are also complying with the Ten Principles

easily understood. I think we need to repeat the same con-of the Global Compact and fulfilling our social responsibilities.

cise messages over and over. In the company of which I was

We also need to ensure that these concepts are thoroughly

previously president, we repeated the same core principles for

assimilated within the company.

six years.

─ It is a mistake to assume that corporate social re-

An Alliance Based on Shared Strengths

sponsibility is outside of your core business operations,such as sponsoring local cultural activities. In fact, isn’t ittrue that the international view of social responsibility is─ Can you tell me about Olympus’ new business part-that it must be an integral part of a company’s core busi-

nership with Sony Corporation?

ness activities? In this sense, wouldn’t you agree that the

Sasa: We were considering ways to raise capital, when we“Social IN” philosophy is an accurate expression of the

had the good fortune of encountering an excellent partner thattrue meaning of corporate social responsibility?

could also offer strategic benefits to our business. There is

Kimoto: Olympus has adopted the concept of group man-little overlapping of technology between the two companies,

agement, so we apply the same corporate management

and Sony has much technology that we need. Specifically,

philosophy globally. This means that people overseas as well

we’re talking about a partnership in the areas of healthcare,as in Japan must share the same beliefs and values. Althoughimaging and life science. However, we don’t want employees

this may seem to be a roundabout way to reach our goals, into think that they’re being

reality, it’s a shortcut. The most important thing for Olympus

forced into this partner-

right now is the ongoing process of visiting our workplaces

ship because of decisions

by Mr. Sasa and myself to engage with our employees facemade at the top. We

to face. In the past there was a large gap between the fac-

expect the partnershiptory floor and top management. We have to bridge that gap.

process to reveal that

Our efforts may not produce visible results immediately, but I

there’s much to be gained

believe that we need to continue this process. I’ve also visited

through cooperation, andoverseas operations, and wherever I go, people are very hap-that we should all work

py to have the opportunity to talk with me and make direct

together to realize thosepresentations about their work to the chairman of the parent

gains.

company. We need to carry out initiatives such as these as

Kimoto: Olympus employees have a sense of pride that theymuch as possible. The problems will not be solved overnight,

can achieve anything within the Olympus organization, but in

but we need to continue these efforts.

fact there are many things that we can’t make ourselves. It’s a

Yasuyuki Kimoto

Hiroyuki Sasa

Chairman, Olympus Corporation

President and Representative Director,
Olympus Corporation

Yasuyuki Kimoto was born in Osaka in 1949.
He joined The Sumitomo Bank, Limited (nowSumitomo Mitsui Banking Corporation) in
1971 and became a Director in 1998, andan Executive Officer in 1999, a Managing
Executive Officer in 2002, a Managing Director
and Managing Executive Officer in 2004, and a Senior Managing
Director and Senior Managing Executive Officer in 2005. He became
President and CEO of The Japan Research Institute, Ltd. in 2006 andwas appointed a Special Advisor to that organization in April 2012. He
has been Chairman of Olympus Corporation since April 2012.

Hiroyuki Sasa was born in Tokyo in 1955.
He joined Olympus in 1982 and became
General Manager of the Endoscope Business
Planning Department in April 2001, Division
Manager of the First Development Division of
Olympus Medical Systems Corporation in April
2005, Division Manager of the Marketing Division of Olympus Medical
Systems Corporation in April 2007, an Executive Officer and Director of
Olympus Medical Systems Corporation in June 2007, and Assistant to
the President and Assistant to the Group President of the Information& Communication Group in March 2012. He has been Representative
Director and President of Olympus Corporation since April 2012.

Olympus CSR Report 2012 Digest

5matter of balance. By working with another company, we canand implementing reforms throughout the business. We needtake our achievements to a higher level and spread our wings

to put our heart and soul into this work and believe that bywider. The fact that we’ll be working with Sony in certain fields

pursuing the goals expressed in the “Back to Basics,” “Oneis an excellent opportunity. We have excellent technology, andOlympus,” and “Profitable Growth” paradigms, we shall re-

we should be proud to share it openly.

build Olympus from the bottom up, while at the same time

Sasa: Some people are worried about our ability to work with

providing returns to our stakeholders. However, this is not aa company that has a different corporate culture, but I believetask that top management can accomplish on its own. We

that both companies will be able to learn a great deal fromneed the support and help of all of our employees, and to do

one another, precisely because of their differences. This is a

this effectively we also need to increase leadership education

real opportunity. Of course, there will be times when we canthroughout the entire corporate structure.

compromise and times when we can’t. The key to success

Kimoto: A company needs to have aspirations and dreams.

in any joint venture is the ability to compromise and reach an

For example, in the field of gastrointestinal endoscopy, we canunderstanding that will benefit both parties.

turn our designs into global standards. A dream is a wonder-

Kimoto: Whenever two companies collaborate in a joint

ful asset that also brings with it huge responsibilities.

venture, they’re likely to approach it from completely differ-This goal will be an enormous challenge. It is not sim-ent perspectives. If those differences generate progress, theply a matter of attaining world-beating technical excellence.

process will create value for both companies. There will also

We’re also in a position to think about the implications forbe cases in which collaboration doesn’t work, but if you worry

doctors, patients and a wide range of other stakeholders. In

about that before you begin, you’re going to miss out on hugethat sense, Olympus is a company with huge dreams, andpotential gains for both parties.

with the opportunity to take up the challenge of realizing
those dreams. Before we can do that, however, we have to

Realizing the Medium-Term Vision

rebuild. I see even that task as part of our efforts to achieve
our dreams. Few companies offer such opportunities. This is

Sasa: Our ability to realize our medium-term vision depends

work that will give us real satisfaction. Obviously there’ll beon the willingness and trust of our employees. We’re chang-difficulties ahead, but we’ll continue to move forward towards

ing our corporate structures, trying new ways of doing things

the realization of our dreams.

Commitment to ComplianceOlympus Corporation
At Olympus Corporation, we sincerely regret that past financial accounting misconduct has caused ourcustomers and society enormous difficulties and undermined stakeholder confidence. With this in mind,
and in keeping with our company’s “Social IN” philosophy, the new management team hereby declares
our commitment as follows:

To regain stakeholder trust and to enhance corporate value, Olympus’
management is committed to complying with all laws and regulations andrespecting social norms at all times.
In the effort to achieve sustainable growth, the management team reaffirms the importance of laws, regulations and social norms and will work to foster a corporate culture where each employee, as a member of the
Olympus Group, will consider what is right and act in accordance with our company’s guiding principles.
We will thoroughly investigate any violations to this commitment, past or present, taking corrective actions
and implementing preventive measures as necessary.
By transforming our organization, we aim to create new value for society, to improve communication withall stakeholders, and to increase the transparency of our decision making.
We reaffirm our basic mission of creating value for society through innovative technology, quality products
and unparalleled service, and we pledge that all employees of the Olympus Group will make a concerted
effort to help people worldwide lead healthier and more fulfilling lives.

Hiroyuki Sasa
President and Representative Director, Olympus Corporation

Olympus CSR Report 2012 Digest

6Building the New Olympus
Medium-Term Vision Toward Realization of a New Olympus
Olympus Corporation has adopted a new five-year,

Corporate Management
Policies

medium-term vision, starting in fiscal year 2012.

Basic Strategies

The new vision aims to return the company to thebasic founding values of Olympus. Our goal is to makeRebuild our business portfolio
and optimize the allocation of
our management resources

Back to Basics

a fresh start and regain the trust of our stakeholders, build our company anew, and enhance corporate

Review our cost structures

One Olympus

value.

Restore our financial healthProfitable Growth
Restructure our governance

Measures to Prevent Recurrences
Based on the problems identified by the Third-Party Committee and their recommendations concerning the prevention of recurrences, we will implement the following preventive measures to ensure that problems of this type never
happen again.
Strengthen Corporate Governance
Structure

2 Improve Internal Control Systems

3 Review Compliance Systems• Clear separation of executive andsupervisory functions• Reinforcement of supervisory authority
and functions over executive functions• Fairness in selection of outside directors
and corporate auditors, and expansionof the roles and functions of outside
directors and corporate auditors• Active disclosure of information• Improvement of internal checks andbalances• Appropriate management of business
investments, subsidiaries and affiliatedcompanies• Prevention of fraudulent activities throughimprovements to human resource
management systems• Enhancement of internal audits• Improvement of management
team’s compliance awareness, andestablishment of clear accountability• Establishment of systems to support
further reinforcement of compliancepromotion• Fostering of consistent awareness ofcompliance• Improvement of Hotline Systems

1

Measures to Remove the “Securities on Alert” Designation
On January 21, 2012, the Tokyo Stock Exchange de-determines, on the basis of these reports, that there

signed Olympus as a “security on alert.”

are no issues affecting the internal control systems.

From now on, Olympus will be required to submit

Olympus established an internal project team witha written report to the Tokyo Stock Exchange eachthe aim of achieving the removal of the “security on

financial year, detailing the status of its internal control

alert” designation within one year. Over 100 people aresystems and other matters. The “security on alert”

now working on radical reform projects designed todesignation will be lifted if the Tokyo Stock Exchange

strengthen all aspects of corporate governance.

Schedule for Development of Internal Systems
2012
Mar.

Apr.

May

Jun.

Internal system development period

Identificationofimprovement
measures

Jul.

2013
Aug.

Sept.

Oct.

Internal system implementation period

System development
Implementation of improvement measures
Regulations development

Olympus CSR Report 2012 Digest

7

Nov.

Dec.

Jan.

Feb.–May
Review
periodSubmissionof internal
confirmation
documentOlympus CSRManagement Philosophy and Corporate Conduct Charter
The Olympus Group will help people to enjoy better health and happier lives by working as an integral
member of society, by sharing its values, and by offering new values through its business activities.

Management Philosophy and Corporate Slogan
Since 1994, the Olympus Group has regarded the “Social IN”
management philosophy as the starting point for management
thought. This means that we strive to realize better health andhappiness for people by being integral members of society,sharing common values, and proposing new values through ourbusiness. The Olympus promise is encapsulated in the phrase“Your Vision, Our Future,” which was adopted in 2003 as aninternational corporate slogan. “Your Vision, Our Future” reflects
the essence of Olympus, a determination to continue living as
an active member of society, and realizing dreams in cooperation with society.

The Olympus Group’s Management Philosophy

Integrity in Society

The Olympus Group’s Management Philosophy

Creating Innovative Value

Social Involvement

We aim to establish firm ties with society
through INtegrity, INnovation and INvolvement.

The Olympus Group strives to realize better health and happiness for people by being integral members of society, sharing
common values, and proposing new values through its businessactivities. This “Social IN” concept is key to the basic Olympus
philosophy underlying all our activities.

WEB

Approach to CSR

Corporate Slogan “Your Vision, Our Future”
http://www.olympus-global.com/en/corc/
profile/#vision

The CSR Concept of the Olympus Group

Social IN
CSR = Development of both society and Olympus

Through its CSR activities, the Olympus Group responds
to the needs and expectations of society and fulfills its
obligations and responsibilities. Olympus contributed tosociety in various ways even before it coined the phrase,“Social IN.” However, we believe we should do more. The
business environment is constantly changing, and there
is also gradual change in the social values that Olympus
needs to share with society, and in our management andemployees.
Our continuing existence in this environment ofconstant change, and our ability to help people achieve
healthy and happy lives depend on the fulfillment of our
responsibilities to various stakeholders, namely our employees and their families, customers, business partners,
shareholders, local communities and society.

Contribution to Society
through Business:

Social demands
and expectations

Contribution to Society
through Other Voluntary
Activities:

By providing needed value
to society and producing
profits through business

By investing in society andestablishing a meaningful
relationship within it

Customers
Business
Partners

Duties andresponsibilities
to society

Employees

Local
communities

Shareholders

International
community

Fulfillinceg all
om p li a n
w it h l a w o b l i g at i on s t h ro u g h c s e t h i c s
s , r e g ul a ti on s a nd b u si n e s

E c o no m i c, society, the environment

Olympus Group Corporate Conduct Charter and Code of Conduct
As part of our efforts to raise awareness of compliance and prevent any recurrence of the problems, we have revised our management philosophy, the Olympus Group Corporate Conduct
Charter and the Olympus Group Code of Conduct.
We have not changed the fundamental ideals containedin our “Social IN” management philosophy. However, we haveredefined the three “INs” that make up the “Social IN” system toachieve closer consistency with the Corporate Conduct Charter.
Our most important priority concerning the Corporate
Conduct Charter is to ensure that it is used as guiding principles
for the conduct of Olympus Group members at all levels fromordinary employees to senior executives. The Charter reflects

the social responsibility principles expressed in the latest international guidelines, including the 2011 OECD Guidelines forMultinational Enterprises, the ISO 26000 (guidance on social
responsibility), the 10 Principles of the United Nations Global
Compact, and the 2010 revision of the Charter of Corporate
Behavior of the KEIDANREN (Japan Business Federation).
We have also sought to ensure consistency between the
Corporate Conduct Charter and the Code of Conduct, which
was designed to provide employees with clear guidance on their
day-to-day conduct based on the social responsibility principles
stipulated in the latest international guidelines.

Olympus CSR Report 2012 Digest

8Olympus’ Corporate Conduct Charter
Guided by the fundamental concept of “Social IN” and a keen awareness of our responsibilities as a corporate member of society,and as a company on which diverse people with different cultures and value systems depend, the Olympus Group continues toprovide value to society by enhancing people’s lives through the products and solutions that we design and deliver.
At the Olympus Group, we are committed to conducting our affairs with a strong sense of ethics, and accordingly, will strictly comply
with all relevant laws and regulations. We have revised the Olympus Corporate Conduct Charter to serve as the basis for making
appropriate decisions and taking responsible actions. All members of the management team and all employees of the Olympus Group
hereby pledge to act in accordance with the new Corporate Conduct Charter in their global corporate activities.

< INtegrity >< INnovation >(Integrity in Society)< INvolvement >(Creating Innovative Value)(Social Involvement)

1. Adherence to High Ethical Standards

3. Delivering Innovative Value

5. Harmony with the Environment

We will prioritize the spirit of compliance under
any circumstances and will never tolerate any
action that violates laws and regulations, social
norms or internal rules.

Olympus strives to play an integral role in helping people around the world lead healthier andmore fulfilling lives. To enhance people’s lives, theOlympus Group will continue to offer innovativevalue.

Respecting the importance of people’s safety andhealth and the essential role of nature in supporting their lives, the Olympus Group will contributeto a healthy environment and pursue sustainable
development of society through business activities and technological developments that are inharmony with nature.

We will create an environment within the organization where no concern pertaining to compliancewill be ignored. Moreover, we will implement training and provide guidance to all parties concerned.
We will consistently oppose any antisocial force
or organization posing a threat to the order andsafety of civil society and completely dissociateourselves from any relation with them.

2. Respect for Human Rights
In all corporate activities, the Olympus Groupwill respect all internationally recognized humanrights and will prohibit forced labor, child laboror discrimination based on race, beliefs, gender,
age, social position, family lineage, nationality,
ethnicity, religion or disability.

WEB

Olympus Group Code of Conduct

To that aim, we constantly seek to provide safe,
high-qualit y products and ser vices that engender loyalty and affection for our brand andthat are meaningful to society, while taking sufficiently stringent measures to protect customers’
information.

4. Working Environments with Vitality
The Olympus Group will provide a safe andhealthy working environment where individualityand diversity are respected and personal development is fostered. This environment will allow
employees to strive for the highest level of skill
and knowledge, and enable the innovative creation of value sought by society.
We will aim to create working environments witha high level of transparency in management,
to share information without seeking to hide orobfuscate unfavorable truths, and an atmosphere in which free and vigorous discussion is
encouraged.

6. Contribution to Society
The Olympus Group is always mindful of the
impact our decisions have on stakeholders andsociety, and we will actively seek out the voicesof stakeholders, including customers, business
partners, shareholders, employees and communities, and sincerely respond to their questions,concerns and needs.
The Olympus Group regards itself as a citizen ineach of the communities where employees live
and work, and we recognize the importance of
supporting community organizations, programs
and activities. Additionally, we will always respect
the culture and practices of the countries andregions where the Group engages in business.

Adopted on June 20, 2012

http://www.olympus-global.com/en/csr/olycsr/philosophy/csrcorporate/policy.jsp

CSR-Related Philosophies and Policies
The Olympus Group established the following CSR-related basic policies, charter, and philosophy as the basis for thorough, groupwide implementation of measures corresponding to items in the Corporate Conduct Charter.
Linkage to CSR Policies
The Olympus Group
Corporate Conduct Charter

INtegrity❶ Adherence to High

Ethical Standards

Integrity inSociety❷ Respect for Human

INnovation❸ Delivering Innovative

Creating
InnovativeValue❹ Working Environments

RightsValue

with Vitality

INvolvement❺ Harmony with theSocialInvolvement❻ Contribution to Society

Environment

From Management Philosophy to Policies/Plans/Actions
CSR-Related Basic Policies,
Charters and Philosophies

Management philosophy, Social IN

Information Disclosure Policy
Information Security Policy
Procurement Policy
Personal Information Protection Policy
Human Rights and Labor PolicyGroup Corporate Conduct Charter

Basic policies

CorporatevisionGroup Code of Conduct

Quality Philosophy
Personal Information Protection Policy
Human Rights and Labor Policy

Medium-term business plan
Company rules
Annual business plan

Environmental Charter
Social Contribution Policy

Daily business activities

Laws,
regulations
and social
norms

UN Global Compact
Olympus agreed with and joined the UN Global Compact in
October, 2004.
The Global Compact (GC) is a voluntary initiative to create
a global framework within which companies can contribute togood corporate citizenship and sustainable growth through responsible and creative leadership. GC signatories support andpractice the ten GC principles, which relate to the protection ofhuman rights, the elimination of unfair labor practices, protection of the environment, and the prevention of corruption, andare required to make continuing efforts, based on commitments

by their own chief executive officers, toward the achievement of
the Millennium Development Goals of the United Nations.
The principles of the Global Compact are incorporated into
our Corporate Conduct Charter and Code of Conduct and reflected in our business activities.

WEB

United Nations Global Compact
http://www.unglobalcompact.org/

Olympus CSR Report 2012 Digest

9Olympus CSR

CSR Management
Our initiatives toward the realization of the “Social IN” management philosophy and an increased emphasison CSR include a review of our corporate governance systems, the establishment of the CSR Committee,
and the improvement of our risk management structures. We are strengthening our corporate governancesystems with the aim of preventing any recurrence of the financial improprieties.
(This section includes information about changes to corporate governance systems and steps taken to strengthen
governance since March 31, 2012.)

Corporate Governance Structure
By adopting an executive officer system, Olympus has established a governance structure which separates the functionsof executive officers, who are responsible for the performanceof business operations, and directors, who are responsible formanagement decision making and the supervision of the performance of operations. Based on lessons learned, Olympus
has further clarified this separation of roles and strengthened its
supervisory functions.
Six highly independent outside directors make up the majority of the 11-member Olympus Board of Directors. In principle, the Board of Directors meets once a month to allow timely
decision making on important aspects of management, suchas management strategies. It also effectively supervises theperformance of business operations by executive officers. The
Chairman, who cannot be the President, serves as Chairmanof the Board of Directors. Independence and objectivity are key
requirements for the nomination of outside directors. Individual
directors apply their expertise to the management of Olympus
through the decision making and supervisory activities of theBoard of Directors. Upper limits have been set for the terms ofoffice and ages of the President and senior executive managing
officers. In principle, the term of office for the President will be
six years.
In addition, we have voluntarily established the Nomination
Committee and Remuneration Committee as independent committees on which the majority of members are outside directors.
These committees nominate candidates for the posts of chairman, president, directors and corporate auditors. They also set
remuneration standards for directors and executive officers.
Officers

Chairman........Yasuyuki Kimoto
Representative Director/
President........Hiroyuki Sasa
Director...........Hideaki Fujizuka
Director...........Yasuo Takeuchi
Director...........Shigeo Hayashi

Outside Director..... Takuya Goto
Outside Director..... Shiro Hiruta
Outside Director..... Sumitaka Fujita
Outside Director..... Motoyoshi Nishikawa
Outside Director..... Hikari Imai
Outside Director..... Kiyotaka Fujii*The six outside directors are independent directors as defined in the Securities
Listing Regulations of the Tokyo Stock Exchange.

Corporate Governance Structure (Extract)
General Meeting of Shareholders
Appointment/
Dismissal

Proposals regarding the appointment/
dismissal of directors

Appointment/Dismissal

Accounting Auditor

・Make decisions on important matters

Accounting
audit

Board of Directors ・Supervise the execution of business duties

Supervision

Chairman・Nominate Chairman, President, Director,
and Auditor candidates

Compensation Committee
・Develop director compensation proposals
and compensation standards for executive officers

Auditors
Reports &proposals

Chairman of
the Board of Directors
President andRepresentative Director
Proposal

Executive Committee

Board ofCorporate Auditors

Audit

・Composed of majority outside directors

Nominating Committee

Appointment/Dismissal

・Assist the President’s decision-making throughparticipation in deliberations on important matters

Compliance
Committee

・Two statutory
auditors (one ofwhom is external)
・Two outside
corporate auditors

Instructions& advice

Supervision

Chairman

Audit

Business Execution

Strengthening the Functions of the Corporate Auditors and Board of Corporate Auditors
To ensure that audits are conducted fairly, Olympus has inviteda person from outside the Olympus organization to become oneof its two Standing Corporate Auditors, in addition to the two
Outside Corporate Auditors. We have also created the Officeof Auditors and assigned full-time staff to assist the Corporate
Auditors in the performance of their duties.
Like the Board of Directors, the Corporate Auditors normallymeet once a month. They attend important meetings, including
board meetings, and have regular discussions with directors
and executive officers. Of particular importance are their quarterly exchanges of views with the representative directors. The

Corporate Auditors also collaborate and share information withthe accounting auditors.
Corporate Auditors

Standing Corporate Auditor........ Takashi Saito
Standing Corporate Auditor........ Masashi Shimizu (non-Olympus)
Outside Corporate Auditor......... Nobuo Nagoya
Outside Corporate Auditor......... Katsuya Natori*The two outside corporate auditors are independent directors as defined in
the Securities Listing Regulations of the Tokyo Stock Exchange.

Olympus CSR Report 2012 Digest

10Improvement of Internal Control Systems
Olympus is improving various functions of its internal control
systems.

these rules.
● To prevent inappropriate actions, we have established a clear

demarcation of tasks in the relevant areas of activity, suchas purchasing divisions and accounting and financial management divisions. We have also established rules requiring
the regular rotation of staff to prevent situations in which thesame people are responsible for the same tasks over long
periods of time.
● We have strengthened the internal audit organization andreviewed procedures. In the current fiscal year, approximately
180 subsidiaries have been audited. We are also taking steps
to facilitate information sharing between the corporate auditors and external auditors.

● In addition to clarifying the roles of head office units, we havealso strengthened internal checks and balances by revising decision-making regulations and rules concerning thesubmission of matters for approval or deliberations by the
Executive Committee, and by taking steps to ensure the consistent application of these rules.
● We have established an integrated management structure forthe supervision of subsidiaries and business investments andclearly identified the parties responsible for the administrationof subsidiaries. We will conduct regular monitoring based on

Establishment of CSR Committee
Olympus has established a new CSR Committee to realize its“Social IN” philosophy by strengthening CSR company-wide.
The task of the CSR Committee is to spread and consolidate
CSR activities throughout the Olympus Group by helping thePresident, who chairs the committee, to make decisions, and bypromoting and monitoring the application of “the plan, do, checkaction” (PDCA) approach to all decisions.
Several promotion committees have been established under
the CSR Committee. These work with the CSR Committee tostudy corporate policies, develop plans and promote their implementation in the functional areas for which they are responsible.

CSR Committee and Promotion Committees
CSR Committee
Risk Management Promotion Committee
Information Security Promotion Committee
CSR Procurement Promotion Committee
Safety & Health and Ethical Conduct Promotion Committee
Social Contribution Promotion Committee

Protecting Information
Olympus has adopted the Olympus Group Information Security Policy and established the Information Security Promotion
Committee to provide a group-wide organizational framework
for measures to ensure information security. Security measures
are implemented from the human, material, organizational andtechnical perspectives. Specifically, access to Olympus facilities
is controlled using IC card systems. Corporate servers and PCs
are protected from viruses and unauthorized access by meansof automatically updated antivirus software, firewalls, quarantine
systems, and antispam measures.
To raise employees’ understanding of information security
issues, we have used the intranet to publish a security handbook based on corporate rules, as well as educational materials,
case studies and other information. We also provide e-learning
programs for all executives and employees. Another initiative designed to raise awareness of information security is Information

Security Month. Lectures and other events are staged during thisperiod to remind employees about the importance of information
security. We also draw attention to information security throughan active program of education and information activities during
the year-end/New Year period.
Olympus handles stakeholders’ personal information using appropriate methods and in accordance with the Olympus
Group Information Security Policy.
WEB
Information Security Policy (Extract)	http://www.olympus-global.com/en/csr/olycsr/
soundcorpo/protection/security.jsp
WEB	Olympus Personal Information Protection Policy(an excerpt, translation)	http://www.olympus-global.com/en/csr/olycsr/
soundcorpo/protection/privacy.jsp

Disclosure
Olympus is working to gain the understanding and confidenceof all stakeholders, including shareholders and customers, byactively disclosing accurate corporate information in a fair andtimely manner. Areas covered by disclosure include management

policies, financial data, the state of business activities, and CSR
activities.
WEB		Informaton Disclosure Policy		http://www.olympus-global.com/en/csr/olycsr/
soundcorpo/informationpolicy/

Ethics Committee
Olympus has taken advantage of synergies with other businessareas, such as microscopes (cellular tissue observation technology) and surgical endoscopes (minimally invasive surgicalequipment), to build an involvement in regenerative medicine andgenomerelated business activities. Experts review activities inthese fields from an ethical perspective at meetings of the Ethics
Committee.
To improve transparency, we disclose the rules, membership list of the Ethics Committee, together with summaries of its
deliberations.

WEB		Ethics Committee (including summaries of minutes)
		http://www.olympus-global.com/en/csr/olycsr/
soundcorpo/irb/
WEB		Rules of the Ethics Committee (Only in Japanese)		http://www.olympus.co.jp/jp/csr/olycsr/
soundcorpo/irb/rules/
WEB		List of Ethics Committee Members (Only in Japanese)		http://www.olympus.co.jp/jp/csr/olycsr/
soundcorpo/irb/member/

Olympus CSR Report 2012 Digest

11Olympus CSR

Encouraging Compliance
We are determined to ensure that Olympus never makes the same mistakes again by strengthening systems
to encourage compliance and fostering a corporate culture based firmly on compliance.
(This section includes the compliance promotion measures implemented since March 31, 2012.)

Compliance Promotion Structure
In April 2012, Olympus appointed a Chief Compliance Officer(CCO) whose task is to clarify compliance-related responsibilities. The company also established a Compliance Committee
chaired by an outside director to advise the Board of Directors
on measures that can strengthen compliance activities on a
global basis. The committee met for the first time on June 7,
2012. In principle, the committee will from now on hold four
meetings per year.
On May 10, 2012, Olympus held a global compliance meeting for compliance officers from regional headquarters worldwide. The purpose of this meeting was to examine the global
and regional implementation of compliance-related policies andmeasures, and to identify issues. In principle, we will continue tohold these meetings every quarter. Policies and measures put
forward at the meetings will be implemented according to theorganizational structure in each region. Within Japan, this role
will be carried out by the Compliance Promotion Committee.
Based on situations discussed and issues raised at the meetings, the CCO will regularly report to the Compliance Committee
on the compliance situation of the Olympus Group as a whole.

Compliance Promotion Structure
General Meeting of Shareholders
Reports &proposals

Compliance Committee
Members: Outside Directors,
Non-Olympus Members, CCO

Instructions& advice

Reports

Reports &proposalsRequests

Board of Directors

President
Executive
Management
Committee

CCO
Global Compliance Meeting
Members: CCO, Regional Compliance Officers

EuropeAmericas

Asia

Actions undertakenby the compliance organization
with each region

CSR
Committee

Japan

Each
organization

Compliance
PromoteCommittee

Compliance Committee Meetings (April–November 2012)
Date

Main Agenda Items• Election of Chairperson and Deputy Chairperson

June 7, 2012

Compliance Committee Members

for the Compliance Committee• Review of compliance initiatives, planning of future

initiatives

Chairperson ......Motoyoshi Nishikawa (Outside Director)
Member ............Kiyotaka Fujii (Outside Director)
Member ............Yoichiro Hamabe (Outside Committee Member,
Attorney-at-law)Member ............Masahito Kitamura (Chief Compliance Officer)

September 10,
2012• Report on second Global Compliance Meeting• Review of compliance initiatives, planning of future

initiatives

Global Compliance Meetings (April–November 2012)
Date
May 10, 2012
Tokyo
July 30/31, 2012
Pennsylvania, U.S.A.

Compliance officers from Europe, the Americas, Asia and Japan attended the first global compliance meeting, which was held in Tokyo on
May 10, 2012.

September 26, 2012(Special meeting)Tokyo
November 27, 2012
Hamburg, Germany

Olympus CSR Report 2012 Digest

12

Main Agenda Items• Global compliance policies• Global compliance management rules• Review of operation of whistleblower

systems in each region• Review of compliance assimilation• Global distributor management rules• Compliance Focus Month events• Third-parties Compliance Management

Integrity Hotline Systems
Number of Hotline Reports and Inquiries(Calls)20In-house contact point

20

External contact point

6

15

15

10
6
5

6

5

4

5
2

3

2

4

10

(FY)

5

2

1

2n

01
al
f2

1s

d

th

ha

lf
2

01

1

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th

al
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2

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al
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01

0

9

9

00

00

lf
2

ha

d

al
f2
th

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8

8

00
lf
2

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7

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00

00

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12

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In the past, employees wishing to report issues in Japan could
submit their concerns via a point of contact within the company
using the Compliance Hotline. In May 2012, an external pointof contact was established to allow employees to speak to an
attorney outside of the company. This new system provides
greater assurance of anonymity, since the attorney providing
the service will never, without the approval of the whistle-blower,
divulge any information that could be used to identify the individual to staff within the company. We have further enhanced
the scheme, including the addition of clearly defined rules to thecorporate regulations requiring follow-up action on all mattersreported, and efforts to report all matters of concern. As a resultof these measures, the number of reports in Japan has morethan quintupled compared with the average for the period up to
fiscal 2011. We will continue to strengthen compliance throughfurther improvements to the system, and through continuing efforts to create a system that will be both useful and trusted.
Olympus has also expanded access to this system to include employees of suppliers that deal directly with Olympus
Group companies in Japan.

0

1st half: April 1–September 30, 2nd half: October 1–March 31*The above totals include requests for legal advice.

Compliance cards
will be distributed
to executives andemployees inJapan.

Note: Separate compliance and integrity Hotline Systems have been
established in each region worldwide.

Litigation by Olympus Employee
An Olympus employee who claimed to have been transferred unfairly after using the Hotline Systems to reportactions by a superior initiated a lawsuit seeking, among
other things, acknowledgement that he was not obliged
to work in the location to which he was transferred. On
June 28, 2012, a supreme court appeal hearing resulted
in the dismissal of an appeal lodged by Olympus. Thisruling overturned the verdict of the Tokyo District Court,

which had dismissed the claim, and confirmed the judgment from a second hearing in Tokyo High Court, thereby bringing the series of legal actions to a conclusion.
As a company, we take the judicial ruling of the court
very seriously, and we will apply the ruling to our future
efforts.
*This matter was included in this report because of the confirmation of the verdict.

Compliance Education
We are further improving our compliance education as part ofour ongoing efforts to transform Olympus into a company thatwill never again commit or overlook financial improprieties. Specific educational activities are being planned and implemented
in each country and region.
The following descriptions refer mainly to initiatives in Japan.

RecipientsContent

CSR-based procurement

The importance of compliance is a constant theme in the President’s speeches, intranet messages and messages from the
CCO. Our efforts to ensure consistent compliance and create
a free and open working environment also include regular town

Olympus CSR Report 2012 Digest

13

Education Methods
Proposed in Block Unit

s

na
n

ve
r

m

ce
O

ffi
c

Risk management

Information securityeel

CSR Overview

Go

Co
m
po

Co
r

e-learning● Messages from and Dialog with Senior Management

ra
te

es
ye

io
n
ot

om
Pr

Lectures, group training

Compliance

itt

ra

ec

en
e

/g

sp

th
wi

es

pl
o
m

Al

le

ye
pl
o

Em

s

ec

or

Olympus bases its CSR education, including compliance education, on a concept known as the “CSR Education Cube.” The
three axes of the cube are content, means and recipients. We
provide various forms of education, including the distribution of
the CSR Guidebook and Compliance Cards, e-learning activities, and group training.

Ex

ct
Di
re

HandbooknseaM● CSR Education Cube

ut
ive

s/

ra
nk

-b

as
e

d

ia
l

ta
s

e

ks

The CSR Education Cube

meetings for executives and employees. These events are also
held regularly at affiliated companies and overseas subsidiaries.

duct. There are also programs for corporate officers and all employees concerning specific laws, regulations and social norms.
Specific aspects of laws and regulations have been identified for prioritized educational initiatives to strengthen knowledge and awareness.

● Rank-Specific Education

In addition to its educational programs for all employees, Olympus also systematically implements training activities targeted
toward personnel at specific levels, including educational programs for management and executive personnel, personnel
who have been promoted, and new employees.

Laws/Regulations Targeted for Prioritized ComplianceReinforcement Efforts
Jurisdictional
Category● Function-Based Education

Specialized, function-specific training, including attendance
at lectures by outside experts and group seminars conductedby external organizations, is being provided for corporate staff
whose tasks require higher levels of knowledge and awareness,such as employees staffing the Hotline, and members of theCompliance Promotion Committee.
In addition, we have implemented ongoing training programs to educate relevant staff about laws and regulations
relating to various aspects of our business, including CSR procurement, trade controls and the prevention of fraudulent transaction practices.

Name of Law/Regulation, etc.
••

Japanese laws
and regulations /Internal rules

Overseas laws
and regulations● Education for All Employees••

Unfair Competition Prevention Act ct against Delay in Payment of Subcontract
A
Proceeds, etc. to Subcontractors (SubcontractingLaw) ational Public Service Ethics Act, code of ethicsNfor public servants•Fair competition rules•

Prevention of insider trading•L aws and regulations relating to bribery••

Olympus implements educational programs covering all aspectsof compliance, with particular emphasis on the Olympus Group
Corporate Conduct Charter and Olympus Group Code of Con- ct on Prohibition of Private Monopolization andA
Maintenance of Fair Trade (Antimonopoly Act) aws and regulations relating to unfair
Lcompetition
 aws and regulations relating to antisocialLelements

Note: T he above activity is limited to Japan. Local activities will be developed at each regional headqurters.

Main Compliance Education Activities in Japan (April–November 2012)
PeriodAs required from
April onwards

April

Progressively from
April onwards
May
As required fromMay onwards

Attendees

Summary

All employees

President’s message via intranet

Executives

President’s presentation
CCO’s presentation on compliance organization

Hotline contact point staff

Seminar for Hotline contact point staff

Workplace representatives

Meeting between Corporate Conduct Charter formulation task team and CCO

Relevant divisions

Trade-related education (seminars for each division)

All employees

E-learning about mental healthCompliance Promotion
Committee

CCO’s presentation

Relevant divisions

Divisional seminars about the prevention of fraudulent business practices
Environment-related e-learning (regulations on chemical substances)

June

All employees

E-learning about the Act against Delay in Payment of Subcontract Proceeds, etc. to
Subcontractors

Executives

President’s presentation

All employees
JulyE-learning about compliance
E-learning about information security/protection of personal information

Executives

Lectures by outside experts
Lecturer: Prof. Yoshinari Koyama of the Kanto Gakuin University College of Economics
Theme: Corporate financial improprieties and compliance

As required from
July onwards

Executives/
employees

Town meetings with President and CCO

AugustAll employees

E-learning about elimination of antisocial elements, prevention of insider trading, management ofseals and signatures

All employees

E-learning on Antimonopoly Act

New employees

Education about management philosophy, Corporate Conduct Charter (group training)

Management

Seminar presented by outside expert
Lecturer: Yoichiro Hamabe, Aoyama Gakuin University Graduate School of Law
Theme: Specific Legal Obligations of Corporate Officers—the Need for Internal Control Systems,
the Era of CSR

All employees

E-learning on prevention of insider trading

Executives

Compliance workshop for divisional managers

Promoted employees

Education about management philosophy, Corporate Conduct Charter (group training)E-learning about AEO system (special export declarations)

September

OctoberNovember

Olympus CSR Report 2012 Digest

14Special Feature

The Olympus Response to the Great East Japan Earthquake
We wish to offer our sincere prayers for the speedy recovery of everyone affected by the Great East Japan
Earthquake, and for an early return to normality in the disaster areas.
As a company involved in the healthcare field, our first priorities after the earthquake were to repair damaged
medical equipment and resume supplies of medical equipment.
In addition to donations of money and products, we also recruited employee volunteers to help with recovery
and relief efforts in the disaster areas.

Disaster Recovery Efforts, Reinforcement of Business Continuity Systems
Disaster Recovery Activities
by the Olympus Group

Main Damage Sufferedby the Olympus GroupAt 14:46 on March 11, 2011 Earthquake, Initial Response

We regret the inconvenience caused to our customers by the suspension of manufacturing andrepair operations after the earthquake. Olympus
continually issued information about the situation and did everything possible to minimize theimpact. We will continue to do our utmost to
meet the needs of our customers.

Immediately after the earthquake, a central response headquarters
with subsidiary functional teams and local response organizations wasestablished under the leadership of the President. The initial priorities
as this organization began to respond to the disaster were to ensure
the safety and health of employees, prevent further damage, maintainbusiness continuity, and gather and send out information. The headquarters organization confirmed the well-being of all employees in the
Tohoku and Kanto regions through the safety confirmation system anddirectly traced some individuals.
In the Tokyo area, approximately 600 employees were unable toreturn to their homes. Therefore, stockpiled emergency food and water
were distributed to them.

Human Losses
We regularly implement drills relating to employee
safety, systems to confirm employee safety andwhereabouts, and our business continuity plan
(BCP). At all Olympus business sites throughout Japan, including the Shirakawa Plant Aizu
Olympus in Fukushima Prefecture and Aomori
Olympus in Aomori Prefecture, only one employee
suffered a minor injury. However, there were fatalities among members of employees’ families. We
wish to offer our sincere condolences and prayers.

March 14, 2011– Responding to Various Situations
On March 14, inspection began of buildings at the Shirakawa Plant,
where there was substantial damage. Units responsible for the supply of parts to affiliated companies and repair and service divisions
resumed operations on March 16. Steps were also taken to secure logistics channels to the disaster area, to ensure the safety of employees
at manufacturing sites and sales offices in the Tohoku region and tohelp them rebuild their lives. As a measure to deal with power outages,
flexible working arrangements were introduced.

Damage to Facilities
April 11, 2011– Full Operations Resumed

There was partial damage to office buildings in the
Sendai area. However, there was no interruption
to services, including our capacity to respond to
customer inquiries. Seven mobile phone shops in
the ITX Group* were damaged and subsequently
closed. Damage to production facilities was especially severe at the Shirakawa Plant. Both buildings
and infrastructure, including water and gas pipes
and electrical systems, were affected. However,the value of ongoing disaster-prevention efforts
was proven by the fact that only one manufacturing facility was destroyed.

At the Shirakawa Plant, service divisions became fully operationalon April 4 and production lines were progressively reinstated from
April 5 onwards. By April 11, all operations had been fully restored.
Meanwhile, it was necessary to cope with the effects of scheduled
power cuts. Continuing interruptions to the flow of parts and otheritems from suppliers became a major business continuity challenge.
Therefore, manufacturing sites made efforts to avoid the use of items
affected by delivery interruptions. This was achieved by replacing
outsourced parts with items produced in-house, by using equivalentalternative items, or by modifying designs. By the end of April, the resumption of full production operations was in sight.

May 13, 2011–*The ITX Group was transferred to Japan Industrial Partners,
Inc. on September 28, 2012.

From Disaster Recovery to Business Continuity

Since Olympus was on track to the resumption of full production
operations, the responsibility for disaster response initiatives wastransferred from the central response headquarters to individual
units. However, because the delayed parts supply continued to affectproduction operations, manufacturing sites implemented measuresto achieve their production targets, such as rescheduling their summer holidays. New business continuity issues were also identified asa result of the March earthquake. We will continue to strengthen ourbusiness continuity planning, which we regard as a corporate social
responsibility, while always giving first priority to the safety and healthof our employees.

Quake soil liquefaction
damage in the parking lot
at the Shirakawa Plant

Olympus CSR Report 2012 Digest

15

A collapsed ceiling at the
Shirakawa Plant

Special Feature The Olympus Response to the Great East Japan Earthquake

Strengthening Business Continuity Systems
Review of and Changes to Business Continuity Plan

Strengthening Disaster Preparedness Systems

Our efforts over several years to develop our business continuity plan (BCP) were very effective in minimizing damage tobuildings and equipment. However, other issues were identified, including the disruption of supplies from parts manufacturers. As a result of the earthquake disaster, we are revising
our BCP to ensure the early resumption of operations after
disasters. There will be no change to our basic BCP policy,
which is to give first priority to the prevention of loss of life
and injuries, to fulfill our social responsibilities, and to give due
consideration to corporate earnings and shareholder value.
Our aim is to clarify the roles and responsibilities of disaster
response teams and strengthen their functions.
We will also strengthen other aspects of the BCP, including the staging of simulation drills based on disaster scenarios, and assembly drills for disaster response teams based on
scenarios in which disasters occur on holidays or at night.

Using the experience gained in dealing with the effects of theearthquake, we identified the types and quantities of stocks
required at each plant and reviewed our disaster stockpilingstandards. On this basis, we are redistributing stockpiles inreadiness for future disasters.
Having established earthquake-resistance guidelines
for company buildings from a BCP perspective, we are now
conducting earthquake-resistance inspections at each site
and taking the necessary steps, including the development ofplans for antiseismic reinforcement, based on the results ofthese checks.
During the disaster we were able to confirm the effectiveness of our systems for checking the safety and whereaboutsof personnel. Furthermore, we are determined to ensure all
personnel have a thorough and consistent knowledge of themethods used so that the systems can be used and implemented reliably, and we will continue to hold disaster evacuation drills and other activities for this purpose.

Function

Changes (summary)Commonfunctions

We have established earthquake-resistanceguidelines for company buildings from a BCP
perspective. We will also implement safetymeasures, including measures to prevent
ceiling collapses, in all new and existingbuildings.

Procurement

We have implemented new procurementrelated measures based on additional
scenarios, in which supplies from suppliers
are disrupted by disasters. Measures include
the procurement of parts, etc., from multiple
suppliers, and strategic stockpiling.

Manufacturing

We have confirmed the effectiveness of existingmeasures to prevent production facilities fromtoppling. Moreover, we will continue our efforts
to strengthen these measures.

Logistics

VOICE

Building Systems to Prevent Disruptions to
Customer Services
Fortunately no Olympus employees suffered serious injuries
in the Great East Japan Earthquake, and we were also able
to minimize damage to our facilities and equipment. Whilethese outcomes confirmed the effectiveness of our business
continuity planning, we also became aware of areas in which
improvements are needed, especially logistics, supplies ofpurchased items, and support for sales and service sites. In
addition to our efforts to develop and strengthen systems
within our facilities, we also need to establish structures
to ensure the non-disruption of services. I believe that we
can achieve this by fostering stronger relationships of trustwith our suppliers, and by taking steps to ensure safety andbusiness continuity at our sales and service sites. I see theimprovement of our business continuity planning as
Tetsuo Kobayashi
General Manager,essential to the fulfillment of
Risk Management
our social responsibilities as
Divisiona company capable of reFormer Coordinator,
Central Response
sponding to the needs of all
Headquarters
stakeholders.

We have taken steps to prevent items fromfalling in product storage facilities.

Responding to Electric Power Demand
In the summer of 2011, the government responded to power shortages resulting from the Great East Japan Earthquake by issuing
restrictions on power use in the service areas of Tohoku ElectricPower and Tokyo Electric Power under the provisions of Article 27of the Electricity Business Act.
We implemented a range of measures throughout the Olympus
Group in Japan, including curbs on air conditioner use and a reviewof temperature settings. The spacing between working light fixtures
was expanded, and unnecessary lights were switched off, and we

also extended the summer vacation period to avoid the peak power
demand period. Olympus companies also brought forward the startdate and extended the finish date for the “Cool Biz” program, whichallows employees to wear light clothing in summer. We replaced
computers and multifunction printers with more energy-efficientmodels and adjusted settings to minimize power consumption. The
numbers of elevators, drink vending machines, water heaters andtea machines in use were also reduced. Individual sites implemented additional measures based on their local situation.

Olympus CSR Report 2012 Digest

16Special Feature The Olympus Response to the Great East Japan Earthquake

Earthquake Recovery Initiatives by Olympus Group Companies
Support Activities in the Healthcare Sector
Widespread damage to medical institutions in the Great East Japan Earthquake had a serious impact on medicalcare for patients. Olympus Medical Science Sales Co., Ltd. (OMSJ), which is responsible for sales, repair
services and customer support in the areas of medical equipment and life science and industrial equipment,
helped facilities damaged by the earthquake to resume medical services as quickly as possible.
March 11, 2011 Earthquake

Results of Visits and Assistance to Disaster-Affected Facilities

OMSJ branches and sales offices in Iwate, Miyagi and Fukushima
Prefecture were damaged in the Great East Japan Earthquake. There
was also damage to employees’ homes, some of which became uninhabitable. The first priority for OMSJ was to check the status of its employees and their families and ensure their safety. The company next
inspected damage to its facilities and started to gather information.

Results: Endoscope systems totally destroyed at 25 facilities
Endoscope systems inundated at 16 facilities
Endoscope systems damaged (excluding systems destroyed orinundated) at one facility (23 buildings destroyed, 38 inundated)

As part of our efforts to maintain the availability of endoscopes in allareas, we lent replacement systems free of charge and carried out repairs at specially reduced prices. Normally we would not repair endoscopes that have been inundated in seawater. As an emergency measure, however, we inspected systems and provided a special free repair
service for equipment that was deemed to be repairable, on condition
that no further repairs would be carried out in the future. Other initiatives included the loan of microscopes to Shizukawa Hospital, which
had resumed medical treatment at a temporary clinic.

March 14, 2011– Start of Customer Support Activities
In addition to the disruption of lifeline services, including electric power,
water and city gas, people in the disaster areas also experienced
shortages of food and gasoline. This situation had a major impact on
the company’s business activities and the lives of its employees.
While the telephone became the main means of providing customer support, OMSJ staff improvised a number of other ways toimprove services. For example, they checked the fuel tanks of all business vehicles and transferred gasoline into the vehicles with the mostfuel remaining, which were then used to provide emergency support
to users. Staff then began to visit medical institutions, always making
safety their first priority.

A loan microscope in use
at a temporary
clinicMarch 22, 2011– Start of Visits to All Facilities

Establishment of System to Provide Customer Support after Earthquakes

Road repair work continued, and gasoline shortages were also gradually alleviated. An 18-member team consisting of 10 field service
personnel from the Tohoku Service Group and eight field service support workers from the Kanto region began to visit all of the more than
1,200 customers in the disaster areas. By the end of April all facilities
in Miyagi and Fukushima Prefecture (excluding those in the exclusionzone) had been visited, while visits in Iwate Prefecture were completedby May 12. During these visits, staff checked equipment for damage
and inspected endoscopes.

As a result of our experience in visiting damaged facilities and inspecting equipment, we established customer support guidelines requiring
the completion of visits to all affected facilities within one month after adisaster. We also prepared a manual containing procedures for the implementation of these guidelines, including the development of a planfor visiting customers, and the establishment of inspection and support
systems.

VOICE

Lessons Learned from Customer Support
Efforts
I experienced the Great East Japan Earthquake in Yokohama,where I was stationed at the time. Although I was not injured
myself, I felt a profound sense of shock at television images
that I saw. I was eager to contribute my limited abilities torecovery efforts in the disaster areas, so I went to the Morioka
Sales Office and began to provide assistance as a field service
worker. I saw medical facilities where staff continued to treat
patients, even though their endoscopes had been crushed
and water was leaking through the ceilings. The experienceleft me speechless. However, when people in the facilities
thanked me for coming all the way from Kanto to check theirequipment, I realized that I could contribute as a service person. Some of the medical professionals I met are still living inevacuation centers and temporary housing, yet despite
their own difficulties, theyAguri Takasugi
are still working hard to help
Osaka Service Group,
their patients. I want to do
Service Division
Olympus Medical
everything I can to support
Science Sales Co., Ltd.
those people.

A medical facility and endoscopic equipment
after inundation during the disaster

Support for Non-Medical Equipment
Special repair services were provided for repairable digital
cameras, film cameras, digital recorders and other personal
products. In the life science field, we visited customers in
the Tohoku region that had purchased confocal laser scanning microscopes, which consist of large pieces of equipment requiring very precise adjustment. The equipment
was inspected free of charge.

Olympus CSR Report 2012 Digest

17Special Feature The Olympus Response to the Great East Japan Earthquake

Recovery Support Activities by Employee Volunteers
On June 14 and 15, Olympus employees voluntarily ran
Wakuwaku Science Workshops *3 for approximately 80 el-

Many Olympus employees took part in voluntary recovery
support activities in areas affected by the Great East Japan
Earthquake. A total of approximately 200 volunteers traveledto the disaster areas between May 16 and June 17, 2011,and between September 26 and October 28. Each groupspent four nights and five days away, departing on Monday
and returning on Friday. With the cooperation of the RQ
Citizens Disaster Relief Network *1, the volunteers helped
clean up homes and farms, remove debris, and clear awayvinyl greenhouses that had been wrecked by the tsunami in
Ishinomaki City and Kesennuma City, Miyagi Prefecture. Other
activities included participation in a project to restore Suisen(Daffodil) Road *2. People in the disaster areas were very
pleased to see groups capable of organized activities during
periods when the number of general volunteers tended to
decline, such as after the Golden Week public holiday period
and after the end of school summer holidays.
Olympus provided employees with opportunities andplaces to participate in voluntary activities and granted special
paid leave. It also arranged transport, accommodation andmeals, supplied safety equipment, including dust masks andsafety insoles, and organized orientation seminars to informvolunteers about safety and special precautions when dealing
with victims. Olympus considered both the needs of victims
and also the mental and physical health of the volunteers. For
example, all volunteers underwent health checks by industrial
physicians before and after the trips and were given opportunities for physical and mental recovery afterwards, including sessions at which volunteers recounted and shared theirexperiences.

Removing debris

WEB

TOPICS

ementary and junior high school students at evacuation facilities and volunteer centers in Ishinomaki City. More Workshops
were held between November 6 and 10 for the benefit of approximately 900 elementary and junior high school students
evacuated from the exclusion zone around the Fukushima
Daiichi Nuclear Power Station. These hands-on events hadthemes relating to light and lenses, which are fields in which
Olympus has considerable expertise. Participants were able
to experience the fun of science through activities that included the use of a camera obscura to learn how camera lenses
work and the creation of kaleidoscopes using spectroscopy
and diffraction. The students also studied and operated endoscopes and used microscopes to learn about the microlevel world.
*1 RQ Citizens Disaster Relief Network
http://www.rq-center.net/en/home-en
WEB*2 The Suisen Road Restoration Project
Located in the Koizumi district of Motoyoshi-cho in Kesennuma
City, Suisen Road (Daffodil Road) is approximately 1.5 kilometers
long. A community development group planted daffodils along theroad, which became a focus for community activities, and a daffodil
festival was held. Sadly, the area was devastated by the tsunami.
Local residents suggested that the restoration of Suisen Road
would help to bring the community together, and the project was
launched with the aim of revitalizing the community by restoring daffodil flowers to the area.
*3 Wakuwaku Science Workshops (Only in Japanese)
http://www.olympus.co.jp./jp/event/wakuwaku/WEB

Suisen Road after voluntary
restoration work

Other support initiatives

Wakuwaku Science Workshop

A letter from a schoolchild

http://www.olympus-global.com/en/csr/social/contribution/disaster/

I TIE☆Aitai—“Oyako Day” Support Project for Disaster Areas
enced the earthquake.
Olympus support included the donation of
30 Olympus XZ-1 highperformance digital
cameras. Olympus also
donated digital cameras,
digital recorders andused notebook PCs and loaned tents to various organizations
involved in recovery support activities, including the international
cooperation organization Peace Boat, Oxfam Japan and the RQ
Citizens Disaster Relief Network.

In addition to monetary donations and the arrangement of voluntary activities, Olympus is also contributing to recovery efforts
in areas affected by the Great East Japan Earthquake throughits support for NPOs involved in recovery initiatives.
Leading photographers, including Bruce Osborn andTaishi Hirokawa, wanted to use the power of photography tohelp families whose photo albums had been lost, parents andchildren trying to make a new start in the face of tragedy, andchildren separated from friends and family. They hoped thatby sharing their knowledge with young people in the disasterareas they could help those affected to move forward to a new
tomorrow. This led to the I TIE ☆ Aitai—“Oyako Day” support
project for areas affected by the Great East Japan Earthquake.
(“Aitai” is Japanese for “I want to see you,” while Oyako(parent-child) Day celebrates the bonds between parents andchildren.) This initiative consisted of photography workshops
for junior and senior high school students who had experi-WEB

I TIE ☆ Aitai—“Oyako Day” support project for areas affectedby the Great East Japan Earthquake (Only in Japanese)
http://i-tie.jp/

Olympus CSR Report 2012 Digest

18For Customers
Olympus can only create value through its activities when its products and services are useful and provide
value to its customers. Our commitment to group-wide quality assurance reflects our determination toprovide products and services that will earn the confidence and trust of our customers.

Quality Philosophy

Development-Stage Initiatives
We accurately assess the quality of all products using quality
assurance systems that meet international certification requirements. This focus on product quality begins with quality
assessments at the development stage, which is the starting
point for manufacturing. Our
products undergo various
in-house checks, including
electromagnetic compatibility(EMC) tests, safety tests, usability assessments, environmental tests, and materials
EMC testing in a 10 m wave
analyses.

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.

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.

anechoic chamber

Customer-Focused Manufacturing

Customer Support Systems

We gather information through marketing research and by listening to the comments and views of users of Olympus products. This customer input is then applied to our manufacturing
activities.

One of the ways in which we work to achieve customer satisfaction is by maintaining systems that allow us to respondpromptly to inquiries and provide timely repair services on therare occasions that faults occur. Olympus is continually improving its capabilities in this area. Another service that helps
to build customer confidence in our products is the publication of important information for users on our website.

Design and Manufacturing Reflecting Customers’ Comments

Reflecting customer comments in products and services

Customer Support Systems by Product Category

Customers
Inquiries

ProposalsFace to Communication
Faceby Telephone
Customer
supportcenters

Requirements

HP

Marketing departments andsales companies in Japan
Overseas subsidiaries andagentsComments

Medicalsystems

E-mailMicroscopes
Showrooms

Imaging

Discussions inrelevant departments
Usability
evaluation

Marketing and sales
Development and designing
Planning

We help customers to use our products safely and withconfidence by responding to technical inquiries, such as
requests for explanations about operating methods andassistance with problems.
We are continually enhancing our ability to provide prompt
assistance. For example, when necessary we can send
field service personnel to solve customers’ problems inclinical facilities.
To ensure an efficient response to customer inquiries andthe timely resolution of problems, all telephone and mailinquiries are managed centrally in our support center.
Customers who make inquiries are advised about
microscopy seminars provided by Olympus for customers.
This information is also available on our website.
Olympus responds to customer inquiries on weekends
and public holidays during the same hours as on normal
business days. This service is available every day except
system maintenance days and the year-end/New Year
period.
In addition to training in communication skills andproduct knowledge for telephone staff, our efforts to raisecustomer satisfaction levels also include “mystery caller”
surveys conducted by an outside organization.

Quality andEnvironment
Analysis Center

New products and services reflecting customers’ comments

Approaches to provide products that can earn customers’ satisfactionMore detailed information can be found on our website.

WEB

Olympus CSR Report 2012 Digest

19

CSR Activities—For Customers
http://www.olympus-global.com/en/csr/
customer/

For Suppliers
Our approach to business is based on compliance with all relevant laws and regulations, respect for humanrights and the environment, fair and open transactions, and the strengthening of partnerships with suppliers.

PDCA Cycle for CSR Procurement

The Olympus Group’s
Procurement Policy

Plan

The Olympus Group’s Procurement Policy(Extract)∙ Proposal of CSR activity plans∙ Amendment and publication of“Request to Suppliers”∙ Establishment of rules for CSR
audits

1. Compliance with Laws, Regulations, andSocial Norms
2. Green Procurement and Consideration for
the Environment

Action3. Promotion of Fair and Impartial Trade
4. Selection of Suppliers
5. Reinforcement of Partnership with Suppliers
6. Prohibition of Acceptance of Private
Interests

Do∙ CSR Procurement
Promotion Committee∙ CSR procurement
briefings∙ Web-based surveys,
analyses and assessmentsof audit results∙ Formulation andimplementation of training
and education programs
for auditors∙ Formulation of policies fornext phase of activities∙ Management education

Check

CSR Procurement∙ Web-based surveys of companies(CSR)∙ Checks of suppliers’ sites

We held our first CSR procurement briefing for suppliers infiscal 2010. With the cooperation of suppliers, we also commenced on-site checks focusing primarily on regulatorycompliance but also covering such aspects as human rights,
labor, safety and health and the environment. These activities
continued in fiscal 2011, when we again held a briefing for
suppliers and conducted on-site checks.
In addition, the CSR Procurement Committee continues
to meet regularly to formulate activity policies and review activities relating to CSR procurement by the Olympus Group.

Compliance Activities
All contracts relating to our supply chains include clauses prohibiting transactions with antisocial elements and unfair business practices. Furthermore, we regard the Act against Delayin Payment of Subcontract Proceeds, etc. to Subcontractors
as key legislation in relation to our purchasing activities. We
provide thorough training about this law as part of our efforts
to ensure full compliance.

Request to Suppliers (Extract)
1. Compliance with Laws, Regulations, andSocial Norms
2. Health & Safety
3. Fair and Impartial Trade
4. Ensuring Quality and Safety, Delivery, Fair
Pricing, and Stable Supply
5. Environmental Considerations
6. Ensuring Information Security and theAppropriate Protection of Information
7. Promoting Social Contributions
8. Promoting CSR Activities Internally andAmong SuppliersMore detailed information can be found on our website.

WEB

Olympus CSR Report 2012 Digest

20

CSR Activities—For Suppliers
http://www.olympus-global.com/en/csr/
procurement/

For Employees and Their Families
Olympus aims to provide a good working environment for its employees by respecting human rights, andby creating workplaces in which individuals can work to achieve growth both for themselves and for thecompany. Our efforts to provide safe and amenable working environments include compliance with laws andregulations in Japan and other countries, and the application of our policies to overseas subsidiaries in waysthat reflect local conditions.

Human Rights and Labor Policy

Creating Motivational Working Environments

Olympus is actively striving to create a working environment
where every employee can realize his or her full potential. By
respecting human rights, diverse values and individuality, we
aim to develop vibrant human resources and maintain an organization with vitality.
In October 2004, Olympus joined the UN Global Compact
by officially stating its determination to support and implement
the universal principles regarding human rights and labor.
In March 2005, the new Olympus Human Rights and Labor
Policy was formulated for group-wide implementation to senda strong message of respect for human rights to all employees in the Group.

Olympus has established a range of leave and welfare programs to help employees to enjoy fulfilling lives with theirfamilies and in their communities. These include the Welfare
Cafeteria Plan and the Refresher Plan for people in their seventh and 20th years of continuous employment. There is thePension Life Plan (PLP) seminar scheme, under which employees who have reached the age of 55 have the opportunity toattend seminars about retirement lifestyles while staying in aresort hotel. Other welfare programs introduced by Olympus
include paid leave for voluntary activities, childcare and familycare support systems, as well as a system that allows employees to set their own reduced working hours during pregnancy.
Childcare Support System

Employee Skill Development

Leave of absence

Based on this overarching policy, we have introduced theManagement by Object system (MBO-S) of goal management and assessment. Under this system, each employee
independently chooses a theme for his or her work and skill
development activities, then plans and implements work goals
based on that theme in consultation with his or her supervisor.
This approach not only encourages growth, but also ensuresthat employees are treated fairly on the basis of a systemthat they understand and accept. We also help employees todevelop their skills through the Olympus College educational
system, as well as through training programs for advanced
technicians and engineers.

Reduction ofworking hours
Exemption fromChildcare overtime work
Exemption fromovertime andnight-time work

Until the end of April in the child’s fourth year of elementary
schoolDiversity and Opportunity
Olympus provides equal opportunity for male and female
employees. We also employ a wide range of nationalities andactively create job opportunities for people with disabilities.
We have also introduced a reemployment scheme for retirees.
In fiscal 2011, a total of 53 people opted to continue working
after reaching retirement age.

Workplace safety and health are a priority for Olympus, andwe aim to provide workplaces in which every employee
can work with confidence. We work in cooperation with thehealth insurance association to support employees’ efforts
to improve their health by offering a full range of health check
options, as well as access to advice on lifestyle improvement
and mental health.

Item

Until the child’s third birthday

The following numbers of paid leave days until the end of
March in the year when the child starts elementary school
Nursing care leave (adjusted according to the number of children)
1 child: 5 days per year
2 or more children: 10 days per year

Safety and Health, Health Promotion

Number of Occupational Accidents

Within one year, up to the child’s second birthday (may be
extended for an additional six months in special cases)
39 employees used this system in FY2011.
2 hours until the end of April in the child’s first year ofelementary school
1 hour until the end of April in the child’s fourth year ofelementary school(Number of cases)
FY
FY
FY
FY
FY
2007 2008 2009 2010 2011

Work-related accidents resulting in lost work time

6

5

2

5

Work-related accidents not resulting in lost work time

15

20

17

11

9

Total

21

25

19

16

18

Number of female executives

12 (at section manager level or higher)

Number of non-Japanese executives(as of June 2012)

Olympus Medical Systems Corporation: 2
Olympus Imaging Corporation: 1

Employment ratio for people with disabilities(as of March 2012)

1.82% (total for seven companies in thespecial-purpose subsidiary group)

9

More detailed information can be found on our website.

WEB

Olympus CSR Report 2012 Digest

21

CSR Activities—For Employees and Their Families
http://www.olympus-global.com/en/csr/
workplace/For Society
Olympus will continue to help people to enjoy better lives by using management resources gained throughbusiness activities, such as technology and human resources, in a variety of non-business situations.

Olympus Social Contribution Policy

world cruises organized by Peace Boat, a non-governmentalorganization involved in international exchange.

Olympus Social Contribution Policy (Extract)∙ Olympus will contribute to the enhancement of thequality of life on various levels, from local communities
to the global environment, by actively utilizing its
management resources, including technologies gained
through business activities and human resources, innon-business areas.
∙ This Social Contribution Policy applies to all Olympus
group companies globally.
∙ Olympus will strive to establish systems and develop a
corporate culture under which individual employees cantake pride in their status as members of the Olympus
Group, while contributing as private citizens throughtheir own voluntary activities.
∙ Olympus will actively contribute to society, especially inthe four areas, namely, medicine and health, culture andthe arts, the global environment, and natural science.

The Global Environment
Recognizing the vital importance of water to all living things,
including wildlife and human beings, Olympus has created a
voluntary environmental program focusing on water circulation in forests, rivers and oceans. We continually carry out avariety of theme-based programs throughout each year. In
fiscal 2011, we launched the Oceans for the Future Project incollaboration with the Oceanic Wildlife Society (OWS), a nonprofit organization. The aim of this initiative is to encourage
elementary and junior high school children to think about thepreservation of marine environments for future generations.

Medicine and Health
In February 2007 Olympus launched the Brave Circle
Campaign to eradicate colorectal cancer. The aim of thecampaign is to encourage people in the target age group of
40 and older to undergo diagnostic checks. These activities
are promoted by the Brave Circle Steering Committee, which
in July 2009 became a special non-profit organization (NPO).
The campaign has since grown into a public service initiative
involving the participation ofmany companies and organizations. As a full member of
the NPO, Olympus actively
supports colorectal cancer
diagnosis and educational
activities in cooperation with
A talk event organized as part ofgovernment agencies.

Children take part in the coastal photography and craft classes
organized as part of the Ocean Legacy Project.

Natural Science
Through the Wakuwaku Project (literally “exciting project”),
Olympus is encouraging children to take an interest in science through science workshops. The workshops are run
by volunteers, most of whom are
Olympus employees. Olympus isalso a co-sponsor of the Natural
Science Observation Contest, which
was first held over half-a-century ago
in 1960. Organized by the Mainichi
Newspapers and the Society of
Scientific Photography, the contest
helps to foster scientific curiosity byencouraging children to discover theirown answers to questions that inter- A poster inviting entries
for the 53rd contest
est them.

the Tokyo Health Walk

Culture and the Arts
Olympus is using the power of photography in educational
activities designed to spread awareness of the Millennium
Development Goals (MDGs). These goals for the international
community include the eradication of poverty and hunger.
In 2009 and 2010, we held photographic contests on thetheme of the MDGs in collaboration with the United Nations
Development Programme (UNDP) and the AFP Foundation.
We also staged exhibitions of the winning entries in locations
around the world. In June 2011 the photographs were also
displayed at a follow-up meeting hosted by the Ministry ofForeign Affairs and the UNDP. In addition, a panel display of
the winning entries was presented at various ports of call on

More detailed information can be found on our website.

WEB

Olympus CSR Report 2012 Digest

22

CSR Activities—For Society
http://www.olympus-global.com/en/csr/social/For the Environment
Olympus respects the systems of nature and is working toward the creation of a sustainable society and ahealthy environment through the technology development and business activities targeted toward harmony
with the environment.

Hatagaya. We held a briefing for residents of local communities and took necessary steps to reduce the noise and vibration, including changing the construction method.

Olympus Group Environmental Charter
Olympus Group Environmental Charter (Extract)
Environment Protection Declaration

Product-Related Initiatives

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

Our efforts to supply environment-friendly products include
the establishment of the Olympus Eco-Products Standards.
These environmental design standards are used to assess
products, packaging, manufacturing processes and logistics
processes from the four perspectives of environment protection and safety, energy conservation, resource conservation,and information disclosure.
In fiscal 2010, Olympus added new environmentally responsible design standards that are even more rigorous thanthe Eco-Products Standards. Under these new standards,
products that make significant contributions to the reduction of environmental loads are classified as “Super EcoProducts.”
In fiscal 2011, 69 products were added to the list of
Olympus Eco-Products, bringing the cumulative total to 418,
including 13 Super Eco-Products. Sales of Eco-Products now
account for 52% of total sales.

Guideline for Environmental Action
In all business activities, Olympus Group will give priority to environmental protection and will apply itself with dedication to this task both on anorganizational and individual basis.

1. Technology Development
We will develop products, services and production technologies witha careful and conscientious regard for safety and environmental protection. Furthermore, we will make the results of such developments
available to everybody.

2. Drawing up Norms and Assessing Results
We will take the initiative in setting up our own pioneering standards
and norms. We will assess the environmental impact at each stageof our operations from development through to production and sales
to realize continuous improvements.

3. Protection of Natural Resources and Prevention of Pollution
We will make a united effort to conserve natural resources and saveenergy. At the same time, we will push forward with activities basedon the effective use of recycling waste, and endeavor to reduce environmental loads and prevent pollution.

Key Products Certified as Super Eco-Products in Fiscal 2011

4. Compliance and Activity Support
We will comply with environment-related laws and regulations, andco-operate with environmental measures recommended by government bodies. We will actively participate in environmental protection
activities being carried out by regional and international communities.

5. Education and Total Staff Participation
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 of environmental protection activities at home, atwork, and in the community.

SZ-14 Compact Digital Camera(package weight* approximately 42% lighter than earlier products)

6. Structure to Promote Activities
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.

Compliance with EnvironmentRelated Laws and Regulations
IPLEX Ultralite Industrial Videoscope (endoscope)(package weight* reduced by 72% and CO2 emissions by 82%
compared with earlier models)

There were no environment-related lawsuits or fines in fiscal
2011. In October 2011, waste water discharged from Tatsuno
Plant after washing the building exterior walls had temporarily exceeded the waste water standard value, on which we
consulted the municipal government and completed necessary corrective actions. Although there was no penalty imposed from the municipal government, we have establishedprocedures for washing and educating employees to prevent
any reoccurrence. Meanwhile, we received 34 complaints
about the noise and vibration caused by construction work in*Package weight: the combined weight ofthe product, accessories and packaging

Manufacturing-Related Initiatives
Olympus monitors and works to reduce environmental loads
at all stages of product life cycles, including resource procurement, production, distribution, waste disposal and recycling.

Olympus CSR Report 2012 Digest

23

Water used: 1.51 million m3(a 36% reduction relative to the fiscal 2007 level)

CO2 Emissions Generated/Not Generated from Energy
CO2 generated
from energy(t-CO2)140,000

3,918

2,235

100,000

60,000115,097

1,428

110,085

106,009

CO2 not generated
from energy

1,354

11

98,90897,641FY2014 target:
A 20% reduction relative to the fiscal 2007 level

Water, which we use to wash products and in various otherareas of our business activities, is also an extremely importantresource for the maintenance of biodiversity. For this reason,
we are continually developing production methods that requireless water and inspecting equipment to prevent leakage.
We are also working to minimize environmental impacts bymaintaining and monitoring wastewater treatment facilities,
and by monitoring the quality of wastewater.

95,21220,000
0

2007

2008

2009

2010

2011

2014 target(fiscal year)

Manufacturing-related CO2 emissions:
97,652 tons, or a 18% reduction from the fiscal 2007 level

Logistics-Related Initiatives

FY 2014 target: A 20% reduction from the fiscal 2007 level

Olympus Logistics Corporation discovered that the use ofnon-stackable packaging was responsible for an increase in
the number of shuttle trips between the Tokyo Center and the
Tatsuno and Ina Plants. In
2011, the company solved
this problem by introducing
retur nable containers forthe shuttle service. These
containers were put into use
in fiscal 2012 and are now
helping to reduce logistics Wacopon returnable boxes
allow items to be stacked forloads in Japan.

In addition to production cuts necessitated by the economic
downturn and reductions in power consumption in response
to a government directive resulting from power shortages inJapan, Olympus continues to implement day-to-day energysaving activities, including the use of natural energy.
Another focus is the development of alternatives for nonenergy greenhouse gases, such as HFC, PFC and SF6, which
are used for cleaning, semiconductor etching and otherprocesses. We are now working to accelerate initiatives toimprove the environmental performance of our manufacturing
operations. In March 2011, Olympus completely eliminatedthe use of HFC solvents for lens cleaning processes at the Ina
Plant and reduced the use of these substances by 99% year
on year.

transportation.

Protecting Biodiversity

Waste Emissions(t)
6,000 5,588
5,211
5,000

Waste
5,624
5,168

5,120
4,684

4,000

Recycling

4,290
3,900

4,473
4,104

2010

2011 2014 target(fiscal year)

In fiscal 2011, Olympus conducted a biodiversity field survey
in cooperation with independent specialist organizations
to assess the state of flora and fauna habitats and theenvironmental impact of plant operations within the Tatsuno
Plant site and in surrounding
areas. As a result of thiscase study, we formulated
biodiversity protection
guidelines as the basis forcontinuing efforts to alleviate
factors that were identified ashaving a particularly serious A biodiversity field survey was
carried out at the Tatsuno Plant.
impact on biodiversity.

4,470

3,000
2,000
1,000
0

2007

2008

2009

Total waste: 4,473 tons
(a 20% reduction relative to the fiscal 2007 level)
FY2014 target:
Reduce waste by 20% relative to the fiscal 2007 level

In addition to our efforts to reduce waste disposal at landfills
and improve the recycling rate, we are working to minimize
processing losses by developing production technologies,
and by targeting waste reduction at the product design stage.
Through these approaches, we are striving to enhance theresource productivity of our manufacturing operations.
Water Use(thousand m3)
3,000
2,360
2,000

2,160

1,900

1,720

1,890
1,510

More detailed information can be found on our website.

1,000
0

2007

2008

2009

2010

2011

WEB
CSR Activities—For the Environment	http://www.olympus-global.com/en/csr/
environment/2014 target(fiscal year)

Olympus CSR Report 2012 Digest

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Stakeholder Dialog

What does Olympus need to do now
to restore its reputation?
Olympus is working to prevent recurrences of financial impropriety and restore its reputation byrebuilding its governance systems and strengthening compliance. In November 2012 we invited outside experts to Olympus headquarters to provide
recommendations based on various perspectives
about what Olympus needs to do now.
During the dialog, Professor Ishida and Ms. Kuroda expressed frank opinions and asked questions about theefforts made by Olympus to prevent financial improprieties
and strengthen compliance. The discussion was based on
various sources of information, including responses to aquestionnaire survey about the special edition of the 2012
CSR Report (“Rebuilding Trust: The First 100 Days”).
Olympus CCO Masahito Kitamura responded to questions and provided specific numerical data about various
subjects, including the factors that led Olympus management to defer reporting of massive losses and include
falsified information in financial statements, as well as theoperation of the company’s Hotline Systems.
There was also discussion about the difficulty ofchanging a corporate culture in which employees arestill unable to express criticisms of the company freely
and an organizational structure that has become rigid.
Participants in the dialog shared their views on solutions
to these issues, which were some of the causes of the
problems.
As Chief Compliance Officer, Mr. Kitamura has been
involved in the establishment of new systems and otherefforts to rebuild Olympus since immediately after theestablishment of the new management structure. He emphasized the importance of consolidating compliance byensuring that all employees assimilate the redefined “Social

Date: Thursday, November 1, 2012
Venue: Tokyo Office, Olympus Corporation

Theme: Initiatives to prevent recurrences of financial
impropriety and strengthen compliance
Participants:
Hiroshi
IshidaAssociate Professor, Institute of Business and Accounting,
Professional Graduate School, Kwansei Gakuin University
Executive Director, Caux Round Table Japan

Kaori
KurodaExecutive Director, CSO Network Japan

Masahito
Kitamura

Executive Officer and Chief Compliance Officer,
Olympus Corporation

IN” management philosophy and the new Corporate
Conduct Charter. He said that Olympus management wasstrongly aware that their challenge now was to achieve thevital tasks of putting a new “soul” into systems and structures at Olympus. Mr. Kitamura also spoke about plans for
future initiatives, including Compliance Focus Month activities and surveys about employee awareness. Professor
Ishida and Ms. Kuroda both offered insightful advice about
the involvement of employees in the administration ofsystems.

Essential Future Initiatives
Monitoring of administration of systems“You should promote Compliance Focus Month activities〉〉〉
and compliance educationand hold regular surveys about employee awareness.”
Improving assimilation of new management philosophy“You should create more opportunities to raise awareness,〉〉 including town meetings at overseas subsidiaries,
and Corporate Conduct Charter throughout 〉
the organization, including overseas sites
and workplace discussion sessions.”“It is not enough simply to distribute compliance cards.
Revitalization of Hotline Systems 〉〉〉 Educational activities are needed to raise awareness ofthe system and encourage its use.”〉〉
Putting “soul” into systems and structures 〉“You need to devise mechanisms that allow not only
management but also employees to participate in initiatives.”

Olympus CSR Report 2012 Digest

25

Recommendations to Olympus
What society wants to know about Olympus now is theextent of your commitment to the prevention of recurrences of these problems and the rebuilding of Olympus.
For example, you’ve set up a Hotline Systems with anoutside law firm, but you need to ensure that the system
is administered transparently, including the disclosure ofdata about the use of the system and employee satisfaction with it.
In addition to its traditional strengths such as technology and quality, Olympus also has these basic ideals
encapsulated in its “Social IN” philosophy. There is also
an expectation that when those ideals are assimilated by
the organization they will eventually be embodied in new
products combining product quality with characteristics,
which reflect the qualities and character of the company.
As was also stated in “Rebuilding Trust: The First 100
Days,” if you create a roadmap foryour efforts to make Olympus not
only a more successful company
but also a socially trusted company, the result will be a virtuous
circle that will help employees tobetter understand what you’re trying to achieve while also facilitating
feedback from stakeholders.

I am told that Olympus once had a free and open workplace environment. As the company grew larger, your organization became bloated and rigid. That situation led to
the recent financial improprieties. It is not be easy to reestablish a company’s corporate culture in which people arefree to speak their minds. I believe that you should baseyour approach on the creation of mechanisms that would
make it easy for employees to participate in the development and administration of new measures and systems.
As far as the enhancement of the Hotline Systems isconcerned, you obviously need to guarantee secrecy. All
necessary steps should be taken to protect whistleblowers and guarantee their right to report problems.
I was very impressed by your decision to set up a task
team consisting of 30 people selected from among youremployees to review your management philosophy andCorporate Conduct Charter. I also
believe that the stakeholders who
were probably most affected by the
recent problems were actually youremployees. I hope that within thenext one or two years you will holdroundtable meetings for your employees and listen carefully to what
they are saying about problems
and issues in their workplaces.

Hiroshi Ishida

Kaori Kuroda

Associate Professor, Institute of Business and Accounting,
Professional Graduate School, Kwansei Gakuin University
Executive Director, Caux Round Table Japan

Executive Director, CSO Network Japan
After working for a private sector company, Kaori Kuroda went overseas tostudy and was employed in the Center on Japanese Economy and Businessof Columbia University’s Business School. She has also worked for the Asia
Foundation in Japan. She has been employed by the CSO Network sinceApril 2004 and was also involved in the formulation of ISO 26000 as an expert representing Japanese NGOs.
Ms. Kuroda has also been involved in the “New Public Commons” Promotion
Conference. Other posts include membership of the Subcommittee on
Economic Cooperation of the Trade and Economic Cooperation Committeeof the Ministry of Economy, Trade and Industry’s Industrial Structure Council.

Hiroshi Ishida was born in Tokyo in 1966. After graduating with a degree in
economics from Seijo University, he worked for the Industrial Bank of Japan
in market dealing, planning and other areas. He has been active in the
Caux Round Table Japan since October 2000 and became the organization’s Executive Director in 2006. Mr. Ishida is also an associate professor at
Kwansei Gakuin University.

〉〉
Response to the Recommendations 〉

Through this dialog, Professor Ishida and Ms. Kuroda
contributed recommendations that offer valuable insights
for Olympus, which has at last reached the starting pointof its corporate rebuilding process. This dialog has also
given me a very clear awareness of the importance of
employees as stakeholders. The most important priority
for Olympus in the short-term will be to instill a compliance culture throughout its organization. In the longer
term perspective, Olympus will apply these valuable
recommendations as it continues to put its “Social IN”
philosophy into practice through its business activities.

Masahito Kitamura
Executive Officer and Chief Compliance
Officer, Olympus Corporation
Masahito Kitamura was born in Tokyo in
1959 and joined Olympus in 1982. He has
previously served as General Manager of theIndustrial Systems Group, the IT Strategy
Development Dept. and as Division Managerof the Information Technology. His present
post dates from April 2012. He also serves asGroup President of the Corporate Governance
Office.

Full Record of the Stakeholder Dialog
The full content of the stakeholder dialog is included in the Olympus CSR activity website. The special edition of the 2012
CSR Report (“Rebuilding Trust: The First 100 Days”), which was published in August, also contains results from externalmonitoring surveys and in-house surveys.
WEB

CSR Communication

http://www.olympus-global.com/en/csr/csrcommunication/

Olympus CSR Report 2012 Digest

26

Olympus Corporation
CSR Department, Group Compliance Division
Shinjuku Monolith, 3-1 Nishi-Shinjuku 2-chome, Tokyo 163-0914, Japan

TEL: +81-3-6901-9299

E-mail: csr_info@ot.olympus.co.jp

Olympus Corporation Social Responsibilities Activities website http://www.olympus-global.com/en/csr