Social IN
Olympus CSR Report 2016
Toward the Realization of a Better Livelihood and HappinessEditorial Policy

About the Editing Process
The Olympus CSR Report 2016 has been published to inform stakeholders about the Group’s CSR-related basic policies,
management structure, and CSR-related activity results in fiscal 2015.
The reporting format used in this report is in line with the standard disclosure items of the Global Reporting Initiative(GRI) Sustainability Reporting Guidelines Ver. 4.0, the international standard for CSR reporting. The report also contains
details of the Group’s corporate governance structure and policies as well as wide-ranging activities from each of the socialand environmental perspectives.
< Reference Guidelines >● GRI, Sustainability Reporting Guidelines Ver. 4.0

The report does not, however, address all of the requirements of the “comprehensive” and “core” level options of theguidelines.
● Environmental Reporting Guidelines (2012) of the Ministry of the Environment, JapanThe ISO 26000 guidelines and the 10 Principles of the United Nations Global Compact were also used as reference whenselecting items for inclusion in the report.

Period Covered by the Report
Organizations Covered by the Report
This report covers the activities of the Olympus Group, which for reporting purposes covers Olympus Corporation as wellas its 120 consolidated subsidiaries and four affiliated companies as of March 31, 2016.
In principle, the organizations covered by the report are as follows (any change in the reporting organizations covered
with respect to a specific matter is identified separately).
● Corporate governance: The Olympus Group● Social aspects: Olympus Corporation and Olympus Medical Systems Corporation● Environmental aspects: Olympus Corporation, Olympus Medical Systems Corporation, and their main domestic andoverseas production subsidiaries.

Major Changes Relating to the Scope of the Report
Effective April 1, 2015, Olympus took over through an absorption-type split the medical business (except for part ofthe manufacturing functions and part of the functions for responding to the laws and regulations for medical devices
in individual countries) of its wholly owned subsidiary Olympus Medical Systems Corporation, and also absorbed
wholly owned subsidiary Olympus Imaging Corporation.

Period Covered by the Report
April 1, 2015–March 31, 2016
The report contains some information outside this period.

External Assurance
Scope of external assurance: The amounts of CO2 emissions and energy consumption
Scope 1, Scope 2, and Category 4 (emissions from upstream transportation and distribution)of Scope 3
External Assurance Organization: Lloyd’s Register Quality Assurance Limited (LRQA)

01
OLYMPUS CSR REPORT 2016

CONTENTS

Publication Date
Annual publication (Japanese and English editions)● Japanese edition: August 31, 2016

(The previous edition was published on August 28, 2015. The publication of
the next edition is scheduled for August 2017.)● English edition: October 31, 2016
(The previous edition was published on October 27, 2015. The publicationof the next edition is scheduled for September 2017.)

Message from the President

03

Feature05

Aiming for Sustainable
Medical Endoscope BusinessProfileInformation Disclosure/Distribution MediaThe Olympus Group is ramping up efforts to disclose and distributeinformation in a bid to provide stakeholders with a deeper understanding of
its activities. The principal tools used to disclose and communicate thisinformation are as follows:● Principal corporate information disclosure and distribution media•

The Olympus Group website

WEB http://www.olympus-global.com/en/● Financial information disclosure and distribution media

Profile15

Business Overview andMarkets Served

17

Communication with
Stakeholders

20

GovernanceCorporate Governance

21

Compliance

23

CSR Management

29

Society

Financial Results
Medium-Term Management Plan
• Corporate Disclosure• Securities Reports• Annual Reports and other materials
WEB http://www.olympus-global.com/en/ir/data/••● Non-financial information disclosure and distribution media

CSR activity website
WEB http://www.olympus-global.com/en/csr/• CSR Report and other materials
WEB http://www.olympus-global.com/en/csr/download/•

Employment andLabor Relations

34

Occupational Safety and Health36

Training and Education

40

Diversity and Equal Opportunity

42

Human Rights

44

Fair Business Practices

46

Product Responsibility

51

Social Contribution Activities

57

Environment

Disclaimer
In addition to details of the Olympus Group’s (Olympus Corporation as well as its 120 consolidated
subsidiaries and four affiliated companies) past and current performance and results as of March
31, 2016, this report outlines the Group’s plans and outlook as of the date of publication as well as
forecasts based on management plans and policies. These forecasts represent assumptions anddetermination based on information available to management as of the date of the report.
Accordingly, the actual results of future activities and events may differ materially from forecasts
due to a variety of factors.

02
OLYMPUS CSR REPORT 2016

Environmental Management

61

Environmental Performance65

GRI Guideline Reference Chart

73

Assurance Statement
related to GHG Emissions81

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Message from the President

Working toward sustainablegrowth together with society,under our “Social IN” philosophy
Olympus’ management philosophy—
Contributing to society through ourbusiness activities
The Olympus Group strives to realize better healthand happiness for people by being integral
members of society, sharing common values, andproposing new values. This “Social IN” corporate
philosophy underpins every facet of the Group’sbusiness activities. As an overarching vision, we
also look to contribute to society by making
people’s lives healthier, safer, and more fulfillingaround the world.

Hiroyuki Sasa
President and Representative Director

03
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceEmphasis on dialogue withstakeholders

Society

Environment

Initiatives toward the sustainable
development of society

We will strive to properly understand the various
requirements of customers through to latentdemand by communicating with experts andcustomers with high aspirations including healthcare
professionals, researchers, engineers, andindividuals who use cameras both for private andprofessional use. Through these efforts, we will also
contribute to society by proposing and providing
products and services in a timely manner througheach of our medical, scientific solutions, andimaging businesses.
In fiscal 2015, Olympus constructed new
facilities at three manufacturing sites in the Tohoku
area in order to address the growing demand for
medical devices. These facilities were designed withboth the environment and the comfort of employees
very much in mind. Taking into consideration the
Company’s BCP, particular emphasis has also beenplaced on ensuring the continuous flow of goods
and services even in the event of a disaster. As a
key management resource, Olympus recognizes theimportance of its employees as a major driving force
and stakeholder. With this in mind, the Company
places considerable weight on promoting direct
dialogue with its personnel. In addition to creating asignificant number of opportunities for senior
management to interact with staff at all levels,
Olympus vigorously engages in activities that
contribute to the local community. I am convincedthat this emphasis on dialogue will help build strong
ties of mutual trust and serve as a driving force forrealizing our corporate philosophy.

As a global company, Olympus continues to engage
in activities that are geared toward the sustainable
development of society. We are making earnest
efforts in the areas of social responsibility, such as
the environment and governance, as designated in
ISO 26000, the international standard on social
responsibility. Moreover, we joined the UN Global
Compact in 2004 and remain committed toobserving and promoting the 10 basic principles
that cover a wide range of issues including humanrights, labor, and anti-corruption. Additionally, weformulated the Basic Policy for Corporate
Governance in fiscal 2015, and are taking steps toreinforce our governance structure and systems.
As a company that is largely driven by its
medical business activities, it is vital that Olympus
takes the necessary steps to become a force thatcan genuinely excel on the world stage. This
includes setting up a new department that is tasked
with drafting and promoting strategies to ensure theappropriateness of activities to create and provide
value in relation to our medical equipment products
and services. Moreover, we are working to build acompliance structure that will enable us to fulfill our
global aspirations.
Olympus will celebrate its 100th anniversary in
2019. In order to promote sustainable growth
beyond this important milestone, we kicked off our
new medium-term management plan 2016
Corporate Strategic Plan.
Moving forward, Olympus will meet the
expectations of all stakeholders and act as a good
corporate citizen. At the same time, the Company
will work to achieve sustainable growth in concert
with society.

* Please refer to the following website for details:
WEB Medium-Term Management Plan (16CSP) http://www.olympus-global.com/en/ir/data/plan/index.jsp

04
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Aiming for Sustainable
Medical Endoscope Business
Strengthening of medical endoscope production/supply
systems and implementation of CSR activities
Between October 2015 and April 2016, new facilities were completed
in succession at each of the three sites—Shirakawa, Aizu andAomori—responsible for the development and manufacture of
Olympus medical endoscopes and related devices.
Amid expected expansion in global demand, Olympus will fulfill its
worldwide product supply responsibilities by expanding the scale ofits manufacturing sites and business continuity plan (BCP) measures.
The Company will also aim to realize a sustainable medical
endoscope business by promoting the creation of pleasant andrewarding workplace environments at the same time as encouraging
consideration for the environment.
Akihiro Okubo
Division Manager, Medical Manufacturing Division 2,
Manufacturing Group

Shirakawa and Aomori represent the essential businessfoundation for executing the Plan. At the same time, they
are sites that will continue to fulfill worldwide supply
responsibilities.

To Continue to Fulfill Worldwide Supply
Responsibilities Amid Expanding Global Demand
Having started with gastrointestinal endoscopes, Olympus
Corporation’s Medical Business has contributed to theearly diagnosis of illnesses such as cancer and tominimally invasive therapy that is less invasive on the bodythrough its endotherapy devices that are regarded as
examination and treatment instruments as well as throughits surgical endoscopes and energy devices that are usedin surgery.
Recently, endoscopic tests have been recommended
for gastric cancer screening in Japan, and expansion indemand is expected in the years to come due toincreased screening of large bowel cancer using
endoscopy in the United States and Europe as well as due
to growing needs for screening in emerging countries,
including in Asia. In addition, accompanying the morewidespread utilization of endoscopes, the market for
single-use endotherapy devices is continuing to grow year
by year.
Based on these developments, under its five-year
Corporate Strategic Plan (16CSP) that started in April
2016, the Company announced that it would beprioritizing the allocation of management resources to theMedical Business and expanding its business scopefocused on early diagnosis and minimally invasive therapy.
The new buildings completed in succession between
October 2015 and April 2016 for the three sites of Aizu,

Drafting Large-Scale Facility Investment Plans to
Recognize Market Changes in 10, 20 Years’ Timeas Growth Opportunities
Aizu Olympus has been manufacturing endoscopes formore than 45 years, the Shirakawa plant is responsible forthe manufacture of endoscope imaging processing
systems and light sources as well as being responsible for
procurement and repairs, while Aomori Olympus
manufactures endoscopic endotherapy devices andsurgical-use energy devices.
Leveraging the manufacturing capabilities of thesethree sites, the Company has been supporting the growthof its medical endoscope business.
To make this growth sustainable, under the previous
Corporate Strategic Plan announced in 2012 the Medical
Business set an annual average sales growth target of
10%. It was then established that, if the scale of the
manufacturing sites remained as it was at that time, themanufacturing capabilities would not keep up withcapacity in terms of either space or manpower. Thus alarge-scale facility investment plan was launched to further
strengthen the gastrointestinal endoscope business, inother words the three manufacturing sites, in anticipation

05
OLYMPUS CSR REPORT 2016

Representative Products from
Each Development andManufacturing Site

Aomori Olympus Co., Ltd.
Development andmanufacture of
medical endotherapy
devicesShirakawa Olympus Co., Ltd.
Development andmanufacture of lightsources, image
processing systems

Aizu Olympus Co., Ltd.
Development andmanufacture ofendoscopes

Ishikawa Facility (Tokyo)
Medical endoscope development

Hinode Plant
Production feasibility studies for
new technologies and new
business fields, product launches
and manufacture

and anticipating a global market for medical endoscopes,
they also have a responsibility to support further growth.
Combining the procurement, manufacturing and repairfunctions within one site, the Shirakawa plant will also playa major role in the years to come not only on the base but
also in improving productivity and quality across theCompany’s entire medical endoscope business. In
addition, as Aizu Olympus has had its production
capabilities raised approximately 1.6 times, that base will
be fulfilling its responsibility to meet global demand for
medical endoscopes. At Aomori Olympus, there are plans
to establish development and production technologies
geared toward strengthening its competitiveness indeveloped countries, where there is a burgeoning need forsingle-use devices. The Aomori plant will also work toenhance its capabilities as the mother plant for theCompany’s operations in Vietnam, which is positioned asa volume production plant.
As efforts common to the three bases, the Company
will further strengthen collaboration with the TechnicalDevelopment Center in Hachioji (Tokyo), which is
responsible for R&D, and look ahead 10, 20 years to
examine global optimal production, including overseas
procurement, manufacture and repair bases.
By steadily carrying out these measures, theCompany will certainly be supporting sustainable medical
endoscope business from the standpoints of productsupply and repair services.

of a supply system for 10 or 20 years hence.
The Great East Japan Earthquake that occurred in2011 also had an effect on the investment plan. When theearthquake struck, part of the facility at the Shirakawa
Plant in Fukushima Prefecture was damaged, and thedecision taken to suspend production for nearly a month.
Stability of quality as well as of the supply system andrepairs are essential for medical equipment manufacturers.
In the case of medical endoscopes, however, in addition
to the technologies for high-precision machine processing
and the assembly of delicate parts, there are products thatfuse optical and electronics technologies. As it takes along time to master the manufacturing skills, we are notable to immediately set up bases in other regions.
In light of these circumstances, in December 2012,
while fulfilling our corporate responsibility of supplying
products in a stable manner throughout the world, weannounced a plan to implement large-scale facility
expansion, including a BCP, at all three sites to continue ourgrowth. Also factored into the plan were responses in theform of the strengthening of human resource recruitment
and training as well as reducing environmental loads.
While Focusing on Global Markets,
Three Business Bases Collaborate to Strengthen
Market Competitiveness
While extending the operational capabilities possessed byeach of the three bases with the newly completed facilities

06
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Aiming for Sustainable Medical Endoscope Business
Strengthening of medical endoscope production/supply systems andimplementation of CSR activities

THREE
PERSPECTIVESPERSPECTIVE 1

Response to BCP
Promoting BCP under Basic Philosophy of Helping toEnsure “Continuity of Medical Front Line”
During the Great East Japan Earthquake that occurred in 2011,a temblor registering 6.0 upper on the Japanese scale ofseismic intensity was recorded in the Shirakawa district ofFukushima Prefecture, and the resultant power supply outage
lasted for three days. In addition to the effects of part of its
building having sustained damage and the operations at
suppliers and its own procurement activities having beenbrought to a standstill, the Shirakawa plant was forced tosuspend manufacturing and repair operations. Meanwhile, themedical front line operates around the clock every day of theyear, so were the suspension of production and repair
operations to be prolonged, the effects could extend to placing
people’s lives at risk. Especially for Olympus, which enjoys ahigh share of the gastrointestinal endoscope market, business
continuity is a social responsibility of paramount importance. As
it is also difficult for the production facilities responsible for theultra-precise machining of minute, delicate parts to findalternatives, maintaining that accuracy is an important issue atthe business sites with responsibility for manufacturing.
Recognizing this situation, for its new building
construction projects the Company worked on BCP
measures to enable the provision of support from thestandpoint of providing sustainability for the Medical Business.
For all the new buildings at the three sites, the Company had
seismic isolation structures introduced of the type that had
been installed and performance-verified at Aizu Olympus prior
to the Great East Japan Earthquake. At the Shirakawa
business site’s Procurement Division, certain parts are always
stockpiled inside the seismically isolated building, and theCompany has devised measures so that there will be no
shortage of parts even in the event of another major disaster.
Both the Aizu and Shirakawa business sites are implementing
BCP measures in cooperation with their local regions, such as
by collaborating on the Reconstruction Plan advocated by
Fukushima Prefecture and with the hazard mapping initiativesof the local governments in their respective areas.

FOR A SUSTAINABLE
MEDICAL ENDOSCOPE
BUSINESSThe new building construction projects of thethree sites responsible for development andmanufacturing toward the realization of asustainable medical endoscope business.
In addition to working to strengthen theirproduction supply systems, the three sites are
putting into effect CSR activities based on threeperspectives: business continuity plan (BCP),
human resources and consideration for the
global environment.

Exterior of new Shirakawa
plant building

Seismically isolated structure (Aizu)

07
OLYMPUS CSR REPORT 2016

On-site cafeteria (Shirakawa)Message fromthe President

FeatureProfileGovernanceSociety

EnvironmentPERSPECTIVE 2

PERSPECTIVE 3

Response to Ability to Secure andTrain Human Resources

Response to Global Environmental
Protection Concerns

Promoting Creation of Pleasant and Rewarding
Workplace Environments to Secure and Train Highly
Productive Human Resources

Installation of State-of-the-Art, Environment-Friendly
Facilities Appropriate to Each Business Site
Hand in hand with the expansion and enhancement of
production capacity, the new building construction projects
were expected to bring with them increases in the amounts of
raw materials and energy used as well as in the amount ofwaste generated. If left unchecked, it was assumed that theseincreases would lead to a deterioration in the local and global
environments. Based on these concerns and specifically forthese projects, the Company conducted environmental
assessments of the surrounding areas while responding toenvironmental protection concerns by, for example, installingstate-of-the-art, environment-friendly facilities and equipment
appropriate to each business site.

Increasing production capacity requires not only the
expansion and enhancement of facilities and production
equipment but also the securing and training of highly
productive human resources. Especially as medical
endoscopes are products with precision surface finishes that
require the integration of mechanical technologies (such as
precision machining and technologies for the assembly of
precision parts) and electronics technologies (opticaltechnologies as well as image processing and electronicsystems), how to continue hiring and developing skilled
engineers in each field from a long-term perspective is being
called into question.
Based on these business characteristics, the Olympus
manufacturing sites in Japan are operating human resource
management systems and training programs to bring about
improvements in professional ability. These are based on asystem of qualifications centered around the hiring of humanresources on the premise of long-term employment. One
such system is called the Skill Dojo (Skill School), at which
Advanced Technicians instruct new recruits or reassigned
personnel in the skills required at each site on a one-to-one
basis. This system is helping personnel to adapt quickly to thedevelopment front line and to production lines. In addition,
employee motivation and retention rates are also important
issues. On these points, Olympus conducted employee
surveys and interviews in association with the new building
construction projects. As a result, the new buildings areequipped with refreshment rooms, which enable employees
involved in many precise tasks to relax, and with privaterooms that child-rearing employees can use for feeding theirbabies. Utilizing the feedback from the women who occupy
the production front line in large numbers, the Company
increased the size of the clean and spacious washrooms andchanging facilities and undertook the renovation of the on-site
cafeteria that provide healthy menus.

Refreshments room (Aomori)• Installation of solar panels, cold water thermal
storage tanks (Shirakawa, Aizu)
Besides installing solar panels on the roofs, theCompany installed cold water thermal storage
tanks that, using nighttime power, store the waterthat is utilized for cooling during the day.
(Shirakawa: 1,100t/Aizu: 2,000t [A total of 4,000t
at Aizu when its existing facility is included.])• Utilization of heat in the ground (Aizu)
The adoption of a cooling/heating trench that utilizes
the heat in the ground contributes to the saving ofenergy for air conditioners, etc.
• Adoption of LEDs for lighting (Aomori)LEDs are used for all lighting.
• Adoption of free cooling system (Aomori)Installed a free cooling system that utilizes thecooling tower to produce cold water in thein-between periods and in the winter season. As
refrigerators are not used, helps in saving energy.

Cold water thermal storage tank(Shirakawa)

08
OLYMPUS CSR REPORT 2016

Solar panels (Shirakawa)Message fromthe President

FeatureProfileGovernanceSociety

Environment

Aiming for Sustainable Medical Endoscope Business
Strengthening of medical endoscope production/supply systems andimplementation of CSR activities

Aizu Olympus
From its newly constructed factory building Aizu Olympus serves as the
backbone of the Company’s endoscope business that will meet its
heightened expectations long into the future.

Aizu Olympus Co., Ltd.
Established

1970
Business Activities

Development and manufacture of medical endoscopes and related products
Number of Employees

1,735 (April 2016)
International Standard Certifications
ISO 13485 (International standard for quality management systems for medical devices)
ISO 14001 (International standard for environmental management)

Hitoshi Yamazaki
President

embedded in the region. The technological assets that are thedriving force behind training, such as imbuing the corporate
philosophy and working to foster a sense of the
responsibilities involved in medicine through training,
represent the core competencies at Aizu Olympus.
We are also proud of the height of our organizational
capabilities, such as cooperation between superiors andsubordinates and that transcends departments. Under the
QC circle activities that address improvements in any problem
areas—such as quality, cost, scheduling and quantity—on the
manufacturing front line, we address workplace
improvements while demonstrating teamwork in teams ofseveral people and compete in the Nationwide QC Circle
Conference organized by the Union of Japanese Scientists
and Engineers every year. Always finishing in the top rank at
the skills competitions held by the Olympus Group
manufacturing sites as a whole, the technological andorganizational skills that are nurtured through these events arehanded down to other team members every year.
As a world-class product manufacturing site is being
continuously produced from this kind of environment, we will
be supporting the Olympus Group’s endoscope business andcontributing to society in the years to come.

Since our establishment in 1970, we at Aizu Olympus havebeen growing as a main base for medical endoscopeproduction as a part of the Olympus Group, which developed
the world’s first practical gastrocamera , the forerunner of theworld’s first endoscope.
Positioning advanced, high-precision processing
technology, craftsmanship (the skills of outstanding people)
and information systems (advanced IT) as three areas onwhich to focus our strengthening efforts, we are supporting
the development and evolution of the endoscope. Becoming
the doctor’s eyes and hands to enable movement at willinside the body and also so that examinations and treatments
can be conducted that reduce the demands placed on thepatient’s body, parts with many complex shapes and parts
made from a wide variety of materials are used inendoscopes. Their processing and manufacturing also require
skilled techniques. It is my belief that the soil of monozukuri(craftsmanship), which is represented in colorful traditional
crafts, and the diligent and tenacious human qualities of thelocal people run deep in the Aizu region. As a company thathas assumed the mantle of that genealogy, Aizu Olympus
focuses its efforts to the maximum extent on human resource
development and on the creation of pleasant and rewarding
workplace environments while keeping its roots firmly

Representative Lineup of Aizu Olympus Products

Gastrointestinal Videoscope

Bronchoscope

09
OLYMPUS CSR REPORT 2016

ColonvideoscopeMessage fromthe President

FeatureProfileGovernanceSociety

Environment

In Focus

Working to Create Workplace Environments That
Are Even More Pleasant and Rewarding for Women Employees
At a factory that has been supporting the manufactureof gastrointestinal endoscopes for the longest time,
Aizu Olympus’ women leaders are being nurtured.
There are many women who have become
workplace leaders, including those who won the
excellence award at the Japan Management
Association-hosted Innovative Team’s Conference
2007 and are currently training members as teamleaders. Women account for more than half of theemployees at Aizu Olympus, and a manufacturing
process does not start without the active
participation of women. So that the company would
benefit from long-serving women employees
working in comfortable surroundings, when having
its new factory building constructed, the company
created a workplace environment for everyone,
including washrooms and changing rooms, a
refreshment room and a company cafeteria, whilereferring to the opinions of women employees.

Production area

Company cafeteria

VOICE

EMPLOYEE FEEDBACK

Precisely because it’s an environment in which you can relax,
you are able to concentrate on your work.
I am responsible for lens manufacturing processes. My work involves cleaning thelenses, which are about the size of a pen nib and mounted in the ends of endoscopes,
and final inspections. As it’s exacting work, at times other than when concentrating on
my job, I spend time relaxing on a regular basis, such as by chatting with my coworkers.
For me personally, the new factory building is comfortable in a variety of ways and,compared with the previous building, has made the work so much easier. For example,
in the morning you can increase your motivation before starting work by stopping by therefreshment room. In addition, the corridors and washrooms are brightly lit, wide, andprobably because the ceilings are so high you can feel a sense of release. Working inthat kind of atmosphere increases communications with managers, superiors andcolleagues who are high spirited by nature, and I get the feeling that the new building
has resulted in an increase in positive views. At the workplace there are also manysuperiors who are taking leave to take care of their children. There are many club
activities and workplace trips, so private lives have also been enhanced. I think I would
like to continue working in such a comfortable workplace from this point on.

Kaori Sawada
1st Manufacturing Department

10
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Aiming for Sustainable Medical Endoscope Business
Strengthening of medical endoscope production/supply systems andimplementation of CSR activities

Shirakawa Olympus
Toward further quality improvements on the basis of the
One Shirakawa system in which various technicians interact

Shirakawa Olympus Co., Ltd.
Established1978 (commenced operations 1979)
Business Activities

Development and manufacture of medical endoscope systems
Number of Employees

808 (April 2016)
International Standard Certifications
ISO 13485 (International standard for quality management systems for medical devices)
ISO 14001 (International standard for environmental management)

Fujio Murakami
President

manufacturing and repair divisions, and the company thereby
realized significant business streamlining in its function
trifecta, such as the further advancement of cooperation. In
addition, from the manufacturing standpoint, the company
has expanded the site area in response to the expected needfor a system of increased production in the years ahead. In
the Domestic Repair Division, which is responsible for repairsin Hokkaido and eastern Japan, there is active contact withtechnicians in the adjoining Manufacturing Division, and thisis bringing about improvements in repair techniques.
The company is also responsible for the manufacture ofendoscopic ultrasound systems, which have recently beenutilized, for example, in capsule endoscopes and for
examinations of the pancreas, as well as for the 4K camera
heads that form part of surgical endoscope systems. Having
reached the stage where the company is involved not only inthe “boxed item products” but also in the manufacture of thefull gamut of endoscope systems, Shirakawa Olympus has
geared up to create the environment in which to proactively
incorporate endoscope technologies and know-how.
Leveraging that environment in the years ahead, I would liketo think that we will encourage cooperation and collaboration
with other sites—such as with Aizu Olympus and theTechnical Development Center in the city of Hachioji,
Tokyo—that will lead to the creation of rewards and humanresource development for employees as well as to thegrowth of the Olympus Group as a whole.

Shirakawa Olympus is mainly responsible for the development
and manufacture of image processing and light source
equipment, which due to their shape are known as “boxed
item products.” The manufacture of these devices requires
the accurate assembly of a large number of electronic
components and precision parts.
The presence of employees who have a strong sense of
responsibility and diligently accomplish their tasks without
giving up is extremely important. There are many people withthat sort of temperament in Fukushima Prefecture, where thecompany is located, and many of the employees are
Fukushima born and bred. Furthermore, Fukushima
Prefecture ranked third in Japan in terms of the amount of
medical instruments produced in 2014, medical-related
production is clustered here, and Shirakawa Olympus isplaying its part in that alongside Aizu Olympus.
In addition to contributing to that kind of Fukushima
Prefecture industry revitalization, I regard the project toconstruct a new factory building as being in preparation for
the realization of the Olympus Group’s sustainable growth.
The symbol of that is the building of an organization
responsible for each of the three separate functions—procurement, manufacture and repair—and bringing together
those functions in the buildings on one site that has in place
BCP measures such as seismically isolated structures.
Previously on a separate site around 500 meters away, theProcurement Division moved to the same site with the
Representative Lineup of Shirakawa Olympus ProductsVideo system center

High-brightness light source

Ultrasound endoscope

11
OLYMPUS CSR REPORT 2016

4K camera headMessage fromthe President

FeatureProfileGovernanceSociety

Environment

In Focus

Establishment of BCP at “Centralized Procurement Center Shirakawa”
Shirakawa Business Site’s
Three Functions

An Olympus Corporation organization, the Central
Procurement Center Shirakawa procures in bulk theparts for the products manufactured at each of the Aizu,
Shirakawa and Aomori sites from every corner of theworld and thus, so to speak, functions as the heart ofmonozukuri (craftsmanship). As a maker of medical
equipment, Olympus is aiming for this central
procurement to function even in the event of the
disruption caused by a natural disaster, and for the
manufacture and repair of endoscopes and related
equipment to continue uninterrupted to also ensure
continuity on the world’s medical front lines. For thatreason, the Company adopted seismically isolated
structures for its new buildings, including that housing
the Central Procurement Center Shirakawa, andprepared its facilities to be able to withstand anearthquake of the magnitude of the Great East Japan
Earthquake while stockpiling a certain amount of partsand making contingency plans for times of emergency.

Manufacturing
Shirakawa
Olympus Co., Ltd.
Development andmanufacturing sites forimage processing
equipment, lightsource equipment,
etc.

Procurement

RepairOlympus
Corporation

Shirakawa
Olympus Co., Ltd.

Central Procurement
Center Shirakawa
Central procurement/
supply basefor parts, etc.

Domestic repair division
Domestic centralized
repair/service
location

Seismically isolated structure

Inspecting supplied machined parts

VOICE

EMPLOYEE FEEDBACK

The environment here is one in which you can engage in development while
carefully confronting any quality issues.
The inspiring thing about Olympus was that the work drew on the electrical andmechanical system technologies that I had learned about at university. Also, forsomeone born and bred in Fukushima, Olympus gastrointestinal endoscopes hold aglobal market share of around 70%, so there was the added attraction of staying close
to home while at a workplace that contributes to global medicine. As for me, I am now
involved in the development of endoscope surgical integration systems as a part of theTechnology Division. In the development, we are working on the making of betterparts, such as by resolving technical problems through the Technical Development
Center in Hachioji, Tokyo. Although facing up to challenges is important in the field of
medical equipment, more than anything else you are asked questions about quality
and safety. Generally, the work for which electrical systems engineers are responsible
is at a fast pace, and the development time is short as it involves large numbers of new
products. Dealing in medical instruments while looking into new technologies,
Olympus engages in development while carefully facing quality aspects. In addition, as
the Company has had new buildings constructed and increased inter-divisional
communications by having brought together a diverse mix of technicians at one site,
we have reached the point at which we are able to perform design changes
remarkably smoothly. While building up my knowledge and experience as an engineer,
I would like to play an active role as a development leader for a new item of medical
equipment in the years to come.

12
OLYMPUS CSR REPORT 2016

Masataka Azuma
Development 2G

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Aiming for Sustainable Medical Endoscope Business
Strengthening of medical endoscope production/supply systems andimplementation of CSR activities

Aomori Olympus
Facing a global market with inseparable quality control capabilities andease of operation

Aomori Olympus Co., Ltd.
Established

1973

Business Activities

Development and manufacture of medical endoscope-related products(endotherapy devices)
Number of Employees

770 (April 2016)

International Standard Certifications
ISO 13485 (International standard for quality management systems for medical devices)
ISO 14001 (International standard for environmental management)

Masahito Goto
President

across a wide variety of products not only new facilities but
also the creation of an environment in which employees
could concentrate and work were necessary. In addition to
newly building a refreshment room, the company therefore
showed consideration for the safety and comfort of its many
women employees who work while standing up by, forexample, laying thick mats under their feet at work stations.
Several times a month, doctors who use our equipment
come from all over the world to inspect the company. Uponseeing the production line, many of them say “I was able tounderstand your attitude with regard to Olympus quality,”and I feel immensely happy and proud that we are able toconvince them, in addition to such visits being an opportunity
to strengthen our sense of responsibility toward them.
Aomori Olympus also serves the function of motherfactory for the Vietnam factory. The manufacture of
single-use products is prohibitive on cost grounds, and after
stabilizing production at the company here, we will transfer
control of most of the production to the Vietnam factory. For
technical guidance, we are accepting trainees and also
sending many instructors to Vietnam. I am confident that the
fully equipped new factory building is improving the easewith which such members work and that in turn they will
become the driving force behind improvements in efficiency
and product quality.

Aomori Olympus is the development and manufacturing basefor the medical-use endotherapy device products that are
indispensable in the examinations and treatments conductedby endoscopes. Divided depending on their use for
examination or treatment, endotherapy devices enable
operations such as grasping, resecting, collecting, cutting,crushing and hemostasis. The products the company
handles number more than 2,300 types, including energy
devices for surgical use that with one device make it possible
to seal blood vessels, rapidly dissect tissue and performpeeling operations, and the company supplies these products
all over the world. Among these products that are used in thehuman body, in the case of the single-use products there arethose that come into direct contact with the body, andensuring their safety (sterility) is of particular importance.
Accordingly, under the new building construction project, in
addition to realizing spaces that are cleaner than in the past,
we made the latest factory design to be more certain ofdevising an integrated production system, from productprocessing to assembly, sterilization, inspection and shipment.
For example, for the new building we adopted dual shutters forall of the doorways so that no insects can enter from outside
and in the manufacturing areas made the exterior wall to be awindowless double structure as a measure against dust,
insects and rats. In addition, to ensure consistent quality

Representative Lineup of Aomori Olympus Products

Endotherapy device

Surgical energy device

13
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

In Focus

Supporting Global Development as Mother Plant
As one of its growth strategies, Olympus has cited the
expansion of its lineup of single-use products, such as
its endotherapy devices for endoscopes and energy
devices for surgical use, demand for which is growing in
the United States and other developed countries in
Europe. For that reason, in addition to having
strengthened its new product development system by
the recruitment of 120 technical employees in the past
two years at Aomori Olympus, we are supporting thatsystem strengthening as the mother factory for theVietnam factory that is positioned as the volume
production factory for the global market. In specificterms, we are accepting technicians from the Vietnam
factory and, in the same way as in Japan, have divided
the levels of the skilled workers from the manufacturing
front line into six stages and put into effect a training
program to match their levels.
Also, locally in Vietnam, in addition to adopting a
joint certification system with Japan with regard to basic
techniques, such as bonding and brazing, instructors
from Aomori Olympus are heading to Vietnam and set
the certification examination. We are establishing thetarget tasks that they are capable of undertaking only for
those who pass the examination.

Aomori Olympus

Olympus Vietnam

Olympus Vietnam Co., Ltd. (Vietnam factory)

An Aomori Olympus employee is on hand to guidetrainees accepted from the factory in Vietnam.

VOICE

EMPLOYEE FEEDBACK

The people-friendly culture manifests itself everywhere in
the new building
I was born and raised locally, but to be honest other than the cameras I knew nothingat all about Olympus products before I started job-hunting. Although it might bedeemed presumptuous to say so, I feel very proud to be working for a medical
equipment maker that is now making a major contribution to improving the quality oflife of patients all over the world. Although my current work is in the General Affairs
Department and thus only indirectly involved, I like the company slogan of “All for the
Patient’s Smile” very much and replace it with “All for the Employee’s Smile” for use in
my work duties. The systems here are very easy user-friendly, for example the ratio of
women taking leave is 100%, there is a very people-friendly corporate culture, and thatkind of corporate culture manifests itself in the newly constructed factory building.
Clean and featuring sofa benches and vending machines, the newly completed
refreshment room is used during break times as it is a place where you can relax. A
passenger elevator has also been installed, and I have heard pregnant women andthose with injuries say that it has become easier to work than before. They are in theprocess of renovating the existing building where I spend my time, and here they areplanning a powder room. Since I wear little makeup when I’m working, I think thatfacility will make women who have plans after work happy. I am looking forward toseeing in what other ways Aomori Olympus will change in the years ahead.

14
OLYMPUS CSR REPORT 2016

Yumi Fujimoto
General Affairs GroupMessage fromthe President

FeatureProfileGovernanceSociety

Environment

ProfileCompany Outline
Olympus Corporation
October 12, 1919
Shinjuku Monolith, 3-1 Nishi-Shinjuku 2-chome, Shinjuku-ku, Tokyo 163-0914, Japan
Manufacture and sales of precision machineries and instruments
124.5 billion yen (As of March 31, 2016)
33,336 (As of March 31, 2016)
http://www.olympus-global.com/en/corc/o_top/

Company Name
Established
Head OfficeBusiness Lines
CapitalConsolidated headcountFinancial Highlights
Net Sales/Operating Income (Consolidated) (billion yen)
Net Sales

Operating Income
1,200

12,000

1,045

8,485
910

8,046
900

8,000

7,439

7,647

7,133
734

6,000

600

355
3,000

0

2011

351

2012

300

2013

2014

2015

(FY)

0

Share of Net Sales by Business Segment (Consolidated) (billion yen)

Net Sales by Region (Consolidated) (billion yen)

Other

Other

15.8 (2.0%)

17.8 (2.2%)

MedicalImaging608.9 (75.7%)

78.3 (9.7%)

Asia and Oceania

Scientific Solutions

101.6 (12.6%)
EndotherapyJapan

146.0 (18.1%)
804.6

billion yen(FY2015)163.1 (20.3%)
804.6

Endoscopebillion yen(FY2015)

341.6

72.3

Europe195.6 (24.3%)

Surgical

195.0

15
OLYMPUS CSR REPORT 2016

North America

282.1 (35.1%)

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Business Areas
The Olympus Group has continued to expand its global business activities since its foundation in 1919.

Main Group Companies in Japan

Main Group Companies in Asia and Oceania● Olympus Corporation● Olympus Corporation of Asia Pacific Limited● Olympus Medical Systems Corp.

● Olympus Hong Kong and China Limited● Aizu Olympus Co., Ltd.

● Olympus (Shenzhen) Industrial Ltd.

● Aomori Olympus Co., Ltd.

● Olympus (China) Co., Ltd.

● Nagano Olympus Co., Ltd.

● Olympus (Guangzhou) Industrial Co., Ltd.

● Shirakawa Olympus Co., Ltd.

● Olympus (Beijing) Sales & Service Co., Ltd.

● Olympus Medical Science Sales Corp.

● Olympus Trading (Shanghai) Limited● Olympus Software Technology Corp.

● Olympus Korea Co., Ltd.

● Olympus Logitex Co., Ltd.

● Olympus Singapore Pte Ltd● Olympus Systems Corporation● Olympus Imaging Singapore Pte. Ltd.

● Olympus Digital System Design Corp.

● Olympus Australia Pty Ltd● Olympus-Supportmate Corp.

● Olympus Imaging Australia Pty Ltd

Main Group Companies in Europe

Main Group Companies in the Americas● Olympus Europa Holding SE● Olympus Corporation of the Americas● Olympus Europa SE & CO. KG● Olympus America Inc.

● Olympus Soft Imaging Solutions GmbH● Olympus Latin America, Inc.

● Olympus Deutschland GmbH● Gyrus ACMI, Inc.

● Olympus France S.A.S.

● Gyrus ACMI LP● Olympus Winter & Ibe GmbH● Olympus Scientific Solutions Americas Corp.

● Olympus KeyMed Group Limited● Olympus Scientific Solutions Americas INC.

● KeyMed (Medical & Industrial Equipment) Ltd.

● Olympus Scientific Solutions Technologies INC.

● Gyrus Group Limited● Olympus NDT Canada Inc.

● Olympus Finance UK Limited(As of March 31, 2016)

16
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Business Overview and Markets Served
The Olympus Group works diligently to both create and provide new value as a part of efforts tocontribute to society through its Medical, Scientific Solutions, and Imaging System businesses.

Medical BusinessBusiness Overview
Olympus’ Medical Business is comprised of five business units:
the GI&R (gastrointestinal and respiratory) Business Unit; the GS (general surgery) Business Unit; the Uro/Gyn (urology /gynecology) Business Unit; the ENT (ear, nose, and throat) Business Unit; and the MS (medical service) Business Unit.
Through its Medical Business, the Company provides products and services that contribute to the early diagnosis of
diseases as well as minimally invasive therapy that helps to reduce the burden placed on patients’ bodies.

Social Responsibility and Expectations
Medical Progress
Olympus engages in activities that aid in the progress of medicine through its R&D endeavors and efforts to provide
medical devices while paying close attention to the opinions of medical professionals.
Improving Patients’ QOL
Olympus is making every effort to help improve the quality of life (QOL) of patients both during and after treatment by
providing medical devices that are used in the early diagnosis of diseases and in minimally invasive therapy.
Reducing Medical Costs
The early diagnosis of disease as well as minimally invasive therapy help to shorten the periods that patients are
hospitalized and require treatment. Olympus is in turn helping to reduce medical expenses by supplying mainly
endoscopes and other medical devices.

Markets Served
GI&R (gastrointestinal and respiratory) Business Unit
Gastrointestinal endoscopes, bronchoscopes, ultrasound endoscopes, endoscope reprocessors, endotherapy devices,
capsule endoscopy systems, endoscopic information systems
GS (general surgery) Business Unit
Surgical videoscope systems, surgical endoscopes, surgical energy devices, ultrasonically activated devices,
electrosurgical generators
Uro/Gyn (urology/gynecology) Business Unit
Bladder, renal pelvis, and ureter endoscopes, hysteroscopes, resectoscopes, urinary stone treatment devices
ENT (ear, nose, and throat) Business Unit
Rhino-laryngo endoscopes, Multidebriders, bipolar electrosurgical units
MS (medical service) Business Unit
Repair and maintenance of Olympus-manufactured products, single- and multi-year repair and maintenance contracts

Video endoscope systems

Surgical energy devices

Resectoscopes

17
OLYMPUS CSR REPORT 2016

Multidebriders

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Scientific Solutions BusinessBusiness Overview
Olympus globally contributes to the health and safety of society in numerous ways through R&D in healthcare, life scienceand industrial fields. Other services provided by Olympus include production site quality control and inspections of social
infrastructure, such as large industrial plants and aircraft.

Social Responsibility and Expectations
Advancing Life Science Research
By supplying biological microscopes and bioimaging systems, Olympus supports basic life science research that leads to
new medical knowledge, including iPS cell research and research into brain functions and diseases.
Making Life Safer
Olympus is helping to make the world we live in safer by supplying equipment used to maintain and inspect social
infrastructure and lifelines, such as the body and engine of aircraft, roads, bridges, overpasses, power generation facilities,
chemical plants, pipelines, and water supply and wastewater systems.
Contributing to Industrial Progress
Olympus contributes to industrial efficiency and progress by supplying industrial inspection equipment used in researchand quality control in such areas as mechanical and electronic parts and raw materials.

Markets Served
Biological Microscope Systems
System biological microscopes, inverted biological microscopes, stereo microscopes, confocal laser scanningmicroscopes, single-molecule fluorescence detection systems, microscope system equipment, and peripherals
Industrial microscope systems
Metallurgical microscopes, semiconductor inspection microscopes, flat-panel display inspection systems, laser
microscopes, measuring microscopes, microscopic 3-D measurement systems, and peripherals
Remote visual inspection products and non-destructive testing products
Industrial videoscopes, industrial fiberscopes, industrial rigidscopes, peripherals, ultrasonic flaw detectors, eddy current
flaw detectors, phased array flaw detectors, X-ray Fluorescence and X-ray Diffraction Analyzers

Biological microscopes

Industrial microscopes

Industrial videoscopes

Ultrasonic flaw detectors

18
OLYMPUS CSR REPORT 2016

X-ray fluorescence analyzers

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Imaging System BusinessBusiness Overview
Olympus creates innovative digital cameras such as the mirrorless interchangeable lens camera OM-D series, with its SLR
and built-in electronic view finder, the compact and lightweight PEN series, which offers both sophisticated and innovative
properties, and the STYLUS series that open up new possibilities. These and other products have established a new style
to shatter preconceptions about digital cameras.

Social Responsibility and Expectations
Enriching the Experience of Life
Olympus’ affordable mirrorless interchangeable lens cameras offer superb image quality, advanced functions, andexcellent mobility. The Company’s interchangeable lenses deliver high-quality images through outstanding optical
performance. Among a host of products, our compact digital cameras can be used in an expanding range of situations
thanks to their ability to withstand dust, weather, and accidental impact, and our audio recorders make high-quality
recording readily available. Through these and other products, we enrich people’s lives by helping them enjoy the fun ofphotography and the recording of sounds.
Building a Barrier-Free World
Equipped with audio guide functions, Olympus audio recorders are designed for optimal ease of use. The Company
provides audio recorders and digital cameras that even inexperienced users find easy to operate thanks to their logical andintuitive designs and the use of Color Universal Design to enhance visibility for people with different vision characteristics.

Markets Served
Digital Cameras
Interchangeable lens cameras, Interchangeable lenses for digital SLR cameras, compact digital cameras, digital camera
products
Other
Audio recorders, optical materials, binoculars

Interchangeable lens cameras

Compact digital cameras

19
OLYMPUS CSR REPORT 2016

Audio recorders

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Communication with Stakeholders

Olympus sees the reflection of public input in its management policies to share values with society as vital to therealization of the “Social IN” corporate philosophy. We continually listen to the views of stakeholders in the context ofour day-to-day activities.
We also engage experts in dialogue and are currently working on identifying medium- and long-term CSR issues.

Examples of Communication with Stakeholders
Customers

Shareholders and Investors

The Olympus Group actively promotes dialogue with its
customers through each of its Medical, Scientific
Solutions, and Imaging businesses. In doing so, theGroup strives to better understand a wide range ofdiverse latent needs and to propose and provide
products and services in a timely manner.
To solve customers’ issues, Olympus has set up
customer call centers for each business in Japan andoverseas and is expanding opportunities to interact with
its customers through seminars and other initiatives.

Olympus is committed to the fair, timely and accurate
disclosure of corporate information, including
management policies, financial data, and information
about business activities and CSR activities. Whenannouncing our financial results, we hold IR meetings
to explain the results and publish financial data. In
addition, we use our website to distribute presentationmaterials and stream video images of IR meetings,
including Q&A sessions.

Suppliers

Employees and Their Families

Once a year, the Procurement Policy Meeting is heldwith key domestic suppliers for each business for the
purpose of sharing with them the business strategies
and procurement policy of the Olympus Group.
In addition, suppliers can access our ComplianceHelpline, which is used to report compliance issues or
seek advice on compliance-related matters.

In addition to drawing out the opinions of employees
and workplace issues, Olympus actively holds town
meetings that provide opportunities for direct
exchanges of views between the senior management
and employees.
Furthermore, we conduct employee questionnaire
surveys for continual verification and improvement of
the Group’s corporate culture. The results of thesesurveys are reflected in various initiatives includingGroup-wide events that include the participation of
employees and their families.

WEB Investor Information http://www.olympus-global.com/en/ir/

Communities

International Community, Civil Society

We actively participate in various community activities
as part of our efforts to inform a wide range ofstakeholders, including communities, schools andbusinesses located near our business facilities, about
the activities of the Olympus Group.
We also organize facility tours and work experience
opportunities based on the characteristics of eachbusiness site. Other initiatives include the provision of
instructors to schools, and participation in and support
for community events.

Since 2012 we have studied human rights issues incooperation with NGOs and NPOs through ourparticipation in the Human Rights Due Diligence
Workshops run by the Nippon CSR Consortium. We
are also working with various organizations, including
NGOs, NPOs, student groups, international agencies
and government agencies, to help in achieving theMillennium Development Goals (MDGs). We also
undertake a wide range of social contribution activities.

20
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Corporate Governance

Basic Approach and Policy
Basic Approach
The Olympus Group strives to realize better health and happiness for people by being an integral member of society,sharing common values, and proposing new values through its business activities. This is “Social IN” and it describes thebasic Olympus philosophy underlying all our activities.
Based on this, the Company has designed a corporate governance structure to secure the efficiency and efficacy of
the Group as well as the integrity and credibility of our financial reports, and we are continually working to improve thisframework.

Basic Idea Regarding Corporate GovernanceOlympus has formulated its Basic Policy for Corporate Governance, in accordance with the principles of the Corporate
Governance Code.
Based on our fiduciary responsibility to shareholders and our responsibility to stakeholders including clients, employees
and local communities, etc. as well as the above corporate philosophy, our company has implemented all the principles of
the Corporate Governance Code and developed this policy with the aim of realizing effective corporate governance. The
content of this policy has been approved by the Company’s Board of Directors.
WEB Basic Policy for Corporate Governance http://www.olympus-global.com/en/common/pdf/basic_policy_for_corporate_governance_2016.pdf

Promotion Structure
Corporate Governance Structure
The Board of Directors consists of 11 members, a majority (six) of whom are outside directors. In principle, the Board of
Directors meets once per month and approves important management proposals made by the president, the highest
authority for executive management, while exercising appropriate oversight of business execution. Olympus fills the positionof chairman of the Board of Directors with a director that does not have business execution responsibilities.
Olympus expects the six outside directors to apply their specialized expertise in management by engaging in decision
making and oversight of the Board of Directors from an independent perspective. Furthermore, the Board of Directors
requests reports on matters that are decided by the Executive Management Committee or by the president. In this manner,
the Company is strengthening governance from the perspectives of sharing information and monitoring, thereby creating
systems for better ensuring the soundness of management.
Olympus employs an executive officer system, which segregates the decision-making function and supervisory functionof the Board of Directors from the business execution function of the executive officers. In addition, the Company has set
a maximum tenure period for the president and a maximum age for directors and executive officers. These restraints are inplace to prevent inappropriate activities from occurring due to extended tenures of corporate officers.

21
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Overview of the Corporate Governance Structure (As of June 28, 2016)
Board of Company Auditors system

FormatAdoption of executive officer system

Yes

Directors

116

Of whom, outside directors

1 yearTerm of directors

4

Audit & supervisory board members

2

Of whom, outside audit & supervisory board members

8

Independent officers

Yes

Participation of outside directors in determination of remuneration

23 times

Board of Directors convened (2015)

Yes

Results-linked remuneration

Corporate Governance Structure
General Meeting of Shareholders
Appointment / Dismissal

Appointment / Dismissal

Appointment / Dismissal

Audit

Audit &
Supervisory Board
Cooperation

Accounting
Auditor2 standing and2 outside audit & supervisoryboard members

Cooperation

Cooperation

Board of Directors
Audit

Chairman: Non-executive director

Office of Audit &Supervisory Board

Internal Audit Office

5 directors and6 outside directors

Audit

Reports /Suggestions

Discussions /Proposals
Discussions /Proposals
ReportAudit

Assistance withdecision making

Audit

Functional divisions, business units, corporate divisions, and Group companies

For more details on Olympus’ corporate governance, please refer to the 2016 annual report, One Olympus Report 2016.
WEB http://www.olympus-global.com/en/ir/data/annualreport/2016/index.jsp

22
OLYMPUS CSR REPORT 2016

Compensation Committee
Compliance Committee

Election / Supervision

President andRepresentative Director

ReportNominating Committee

Executive Management
Committee
Chairperson: President
Observers: Auditors, etc.

CSR Committee

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Compliance

Basic Stance & Policy
Olympus Group Corporate Conduct Charter
Olympus Group’s Corporate Philosophy
Applying our “Social IN” management philosophy
to our day-to-day business activities, we adopted
the Olympus Group Corporate Conduct Charterand Code of Ethics in September 2004 as the basisof all Group employee actions in order to fulfill our
corporate social responsibilities. As the Olympus Group
Corporate Conduct Charter and Code of Ethics are acomprehensive declaration of Olympus’ stance on CSR,
we formulate various CSR-related policies based onthese codes.
INtegrity
INnovation
INvolvement
In response to a series of problems concerning
Integrity in Society
Creating Innovative Value
Social Involvement
fraudulent financial reporting uncovered in 2011, theCompany revised the Olympus Group Corporate
We aim towards establishing firm ties
Conduct Charter and Code of Ethics in June 2012 towith society through the three IN’s
promote thorough compliance by reflecting discussions
among workplace leaders as well as the opinions ofdomestic and overseas Group employees. These revisions reflect our basic philosophy on social responsibility required by
ISO 26000, UN Global Compact, OECD Guidelines for Multinational Enterprises 2011, and other international guidelines.
Olympus works to raise awareness of the Olympus Group Corporate Conduct Charter and Code of Ethics throughvarious employee-oriented materials, training for new hires, during promotions, and at all levels, and e-learning programs.
Olympus Group Corporate Conduct Charter
Guided by the fundamental concept of “Social IN” and a keen awareness of our responsibilities as a corporate member of society, andas a company on which diverse people with different cultures and value systems depend, the Olympus Group continues to provide
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 Group 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> Integrity in Society<INnovation> Creating Innovative Value<INvolvement> Social Involvement

1. Adherence to High Ethical Standards
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. We will create anenvironment within the organization where noconcern pertaining to compliance will 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.

3. Delivering Innovative Value
Olympus strives to play an integral role in helping
people around the world lead healthier and more
fulfilling lives. To enhance people’s lives, theOlympus Group will continue to offer innovativevalue. To that aim, we constantly seek to provide
safe, high quality products and services thatengender loyalty and affection for our brandand that are meaningful to society, while taking
sufficiently stringent measures to protect
customers’ information.

5. Harmony with the Environment
Respecting the importance of people’s safety
and health and the essential role of naturein supporting their lives, the Olympus Groupwill contribute to a healthy environment andpursue sustainable development of society
through business activities and technologicaldevelopments that are in harmony with nature.

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.

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 willallow employees to strive for the highest level ofskill and knowledge, and enable the innovative
creation of value sought by society.
We will aim to create working environments with ahigh level of transparency in management, to share
information without seeking to hide or obfuscate
unfavorable truths, and an atmosphere in which
free and vigorous discussion is encouraged.

WEB Olympus Group Code of Ethics http://www.olympus-global.com/en/csr/olycsr/socialin/principle/policy.jsp

23
OLYMPUS CSR REPORT 2016

6. Contribution to Society
The Olympus Group is always mindful of the
impact our decisions have on stakeholders
and society, and we will actively seek out thevoices of stakeholders, including customers,
business partners, shareholders, employees
and communities, and sincerely respond to theirquestions, concerns and needs. The Olympus
Group regards itself as a citizen in each of thecommunities 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 and regions where
the Group engages in business.
Adopted on June 20, 2012

Message fromthe President

FeatureProfileGovernance

Linkage between Corporate Conduct Charter and CSR Policies
The Olympus Group Corporate
Conduct Charter

INtegrity
Integrity inSocietyINnovation
Creating
Innovative Value
INvolvement
SocialInvolvement

Corporate philosophy, Social IN● Information Disclosure Policy● Information Security Policy● Risk Management andCrisis Response Policy● Procurement Policy● Personal Information Protection Policy● Human Rights and Labor Policy❷ Respect for Human Rights

Environment

From Corporate Philosophy to Policies/Plans/Actions

CSR-Related Basic Policies❶ Adherence to High
Ethical Standards

SocietyGroup Corporate Conduct Charter
Corporatevision

CSR-related
policies

Group Code of Ethics

Medium-term business plan

❸ Delivering Innovative Value● Quality Policy● Personal Information Protection Policy● Human Rights and Labor Policy❹ Working Environmentswith Vitality

Company rules
Annual business plan

❺ Harmony with the Environment ● Environmental Policy● Social Contribution Policy❻ Contribution to Society

Laws,
regulations
and social
norms

Daily business activities(As of March, 2016)
WEB CSR-Related Basic Policies http://www.olympus-global.com/en/csr/olycsr/socialin/activity/

Promotion System
Compliance Promotion System
In order to clarify who is responsible for compliance-related issues, Olympus has appointed a Chief Compliance Officer(CCO) as a global compliance supervisor.
Moreover, we have also established a Compliance Committee, which is composed of an outside director, the CCO,
and external members (external lawyers in fiscal 2015), which serves as an advisory body to the Board of Directors. The
chair is elected by mutual vote from outside directors. Meeting on a quarterly basis in principle, Compliance Committee
members oversee and improve compliance systems, report compliance-related matters to the Board of Directors, andupgrade related systems to prevent compliance infractions.
We have also established the Global Compliance Committee (GCC), which is composed of the CCO and regional
compliance officers (RCOs), in order to implement compliance-related policies and measures globally, understand regionalsituations and challenges, and carry out necessary corrective measures. The GCC has meetings on a quarterly basis inprinciple. Policies and measures directed and confirmed by the GCC are applied to each region by RCOs. In addition,compliance circumstances and issues throughout the Olympus Group identified by the GCC and RCOs are reported by the
CCO on a regular basis to the Compliance Committee and are discussed at Board of Directors’ meetings as needed.
Compliance Promotion Structure
General Meeting of Shareholders
Compliance Committee

Reports/Proposals

Members: Outside Directors, Non-Olympus Members, CCO

Instructions/Advice

Reports

Executive Management
Committee

Global Compliance Committees

CSR Committee

Members: CCO, Regional Compliance Officers

Americas

President

Reports/Proposals

Requests

CCO

EuropeBoard of Directors

Asia

Japan

Actions undertaken by the compliance organization in each region

Compliance Promotion Committee

24
OLYMPUS CSR REPORT 2016

Each Organization

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Systems and Mechanisms
Compliance Hotline Systems
In an effort to maintain compliance, Olympus has established compliance hotline systems for each regional headquarters inaccordance with the laws of individual countries. For its compliance hotline system in Japan, Olympus has established theCompliance Helpline based on the Whistleblower Protection Act and operates two contact points, an internal one as wellas an external one managed by an independent attorney. Regarding the external contact point, the attorney providing theservice will not, without the approval of the whistle-blower, reveal any information that could be used to identify the individual
to staff within the company of the internal contact point, thereby providing greater assurance of anonymity. In keeping withthe laws on subcontractors and on the prevention of unfair competition, this system receives reports not only from executives
and employees, but also from suppliers that have direct business relationships with domestic Olympus Group companies.
Regional headquarters have established internal/external contact points in Europe and the Americas as well as externalreporting lines in Asia. Internal contact points in the United States are overseen by employees who are certified lawyers.
In cases that reports are received by contact points across various regions in Japan and overseas, the Company
addresses these issues in coordination with each RCO.
■ Facilitating an Atmosphere That Encourages the Use of Compliance Helpline
In Japan, we maintain an atmosphere that encourages employees to use the Compliance Helpline by enhancing internalreporting systems through appropriate revisions of various operating regulations, while raising awareness of this systemthrough e-learning programs, compliance handbooks, and intranet bulletin boards. In addition, we explain how to use theCompliance Helpline to suppliers at supplier briefings held at the beginning of the fiscal year.
Overseas, Olympus promotes the use of internal reporting systems through enhancements and raising awareness,both of which are the responsibility of RCOs.
■ Training of Internal Reporting System Supervisors
With the aim of enhancing the internal reporting system and increasing its trustworthiness, we conduct systematic trainingof internal reporting system supervisors in Japan. Beyond supervisors providing guidance to their replacements, we areworking to systematically and continuously improve supervisor responsiveness by requiring them to obtain a management
ethics certification authorized by the Association of Certified Business Ethics Experts Japan and receive training conductedby an external specialist agency.

Number of Compliance Hotline Reports andInquiries in Japan
External contact point
50

Internal contact point

47

45

50

40

32
29

30

22

20

10

0

38
39

7

2011

16

2012

10

8

2013

2014

12

2015

(FY)

Internal contact point only established in fiscal 2011.

25
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Self-Assessment on ComplianceOlympus conducts a self-assessment survey of the maintenance/operational status of the compliance management
systems of 90 consolidated subsidiaries and four regional headquarters in Japan and overseas as part of Compliance
Month every October. The self-assessment surveys involve Group company Compliance Promotion Committee members
answering questions in 13 categories. Assessment results are provided as feedback to Group companies via the GCC
and Compliance Promotion Committee as well as play a useful role in improving and strengthening Olympus’ complianceactivities. In addition, we undertake compliance assessment monitoring at all Group companies in Japan.
The self-assessment response rate was 100% in fiscal 2015. An analysis of the assessment results reveals that all
surveyed companies generally have compliance structures and mechanisms in place.

Compliance Education
In order to raise compliance awareness and promote an understanding of important laws and internal rules, as well as
to ensure consistent compliance with them, Olympus is enhancing its compliance education. In Japan, the Compliance
Promotion Department conducts education programs for various individuals using optimal tools. In addition, departments
responsible for ensuring compliance to important laws conduct education programs by selecting course participants andtraining methods in accordance with the characteristics of applicable laws. Overseas, we undertake compliance education
in a systematic manner at each regional headquarters according to the education curriculum used in Japan.

Major Results in Compliance Education
Category

Target

MethodDescription

Executive
officers

Group training

Outside instructors conduct lectures on management compliance.
After lectures are completed, all attendees sign a pledge.

All employees

E-learning and group training

General compliance education

All domestic
employees

Distribute compliance handbooks containing explanations of the management philosophy andcorporate code of ethics as well as a Q&A summary

Education in Important
Laws and Regulations

All employees

E-learning and group training

Education on strengthening compliance with key laws and regulations
Provide more comprehensive education programs to departments
and supervisors that are deeply involved with key laws andregulations related to management

Rank-Specific Education

People at
specific ranksGroup training

Educational programs required for management and executive
personnel, employees who have been promoted, and new employees

Messages from Senior
Management

All employees

Intranet

Messages distributed from the President, executives, and the CCO
CCO messages are sent out during Environmental Awareness Month(June), Compliance Month (October), and Information Security Month.

Management Dialog
Opportunities

Managers andemployees

Town meetings

At town meetings, Group company top management and the CCO
explain the importance of compliance.
Town meetings held on an ongoing basis (include affiliates and local
corporations)

General26
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Strengthening Compliance with Key Laws and Regulations
Jurisdiction

Name of Law/Regulation, etc.

Laws, regulations andguidelines in Japan● Laws and regulations relating to the prevention of unfair competition● National Public Service Ethics Act/rules of ethics● Agreements relating to fair competition● Transparency guidelines for the medical device industry in relation to medical institutions, etc.
(formulated by the Japan Federation of Medical Devices Associations)● Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Antimonopoly Act)● Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Subcontract Act)● Labor Standards Act● Laws and regulations relating to insider trading● Personal information protection laws
● Laws and guidelines relating to measures against antisocial forces

Laws, regulations andguidelines in othercountries● Foreign Corrupt Practices Act (FCPA, United States)● U.K. Bribery Act 2010 (United Kingdom)● Anti-Kickback Statute (United States)● OECD agreements concerning the prevention of the bribery of foreign public officials in international commercial transactions● United Nations agreements concerning the prevention of corruption● Other laws and regulations relating to the prevention of unfair competition● Physician Payment Sunshine Provision (United States)● Laws and regulations relating to anti-monopoly● Laws and regulations relating to measures against antisocial forces

Compliance Awareness Survey
We conduct a survey of Olympus Group employees during Compliance Month held every October to monitor the level of
their compliance awareness and identify any related issues. Survey questions consist of 10 common global categories,
while results are reflected in the activities of regional headquarters’ compliance departments and reported to management.
In Japan, we conduct compliance awareness surveys using in-house e-learning systems. In fiscal 2015, we surveyed
12,116 employees, with 99.4% of those surveyed responding (fiscal 2014: 99.2%). Survey results revealed that complianceawareness at workplaces and among employees has increased, but this awareness has not filtered down to the level ofindividual employees’ actual actions. As a result, we plan to enhance compliance education even further.

Status of Legal Compliance
Partial Settlement on Lawsuits for Damages against Past Directors of the Company (March 2016)
Olympus has pursued liability for the 19 past directors of the Company but has decided on a settlement for the 13 past
directors on March 24, 2016.

Agreements with the U.S. Government (February 2016)
The U.S. Department of Justice (DOJ) investigated Olympus’ subsidiary Olympus Corporation of the Americas (OCA) for
conduct raising concerns under the U.S. Anti-Kickback Statute and U.S. False Claims Act by OCA’s medical businessin the United States between 2006 and 2011. In addition, the DOJ conducted an investigation into alleged violationsof the U.S. Foreign Corrupt Practices Act by the medical business of Olympus Latin America, Inc. (OLA), an indirect
U.S. subsidiary of Olympus Corporation, and Olympus Optical do Brasil, Ltda., a Brazilian subsidiary of OLA (OBL). On
February 29, 2016, OCA entered into Deferred Prosecution Agreements with the DOJ in connection with both matters.
OCA also entered into a Corporate Integrity Agreement with the Office of Inspector General of the U.S. Department of
Health and Human Services. Under these agreements, OCA has agreed to retain a corporate monitor and to make various
improvements, including to its compliance program.

27
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Judgment by UK Court (November 2015)
Olympus and its UK subsidiary, Gyrus Group Limited (GGL), were prosecuted by the UK’s Serious Fraud Office for allegedly
making misleading or deceptive statements to the auditors of GGL in respect of its accounts in breach of section 501 of the
UK Companies Act 2006. On November 10, 2015, the Crown Court at Southwark formally entered not guilty verdicts forboth Olympus and GGL, and they have been acquitted of the charges against them. The prosecution is now at an end.

The three aforementioned reports were taken from the Group’s timely information disclosure website for fiscal 2015. For thelatest developments, please refer to the Corporate Disclosure page on the Olympus Group website.
WEB Corporate Disclosure http://www.olympus-global.com/en/ir/data/tes/2016/

28
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

CSR Management

Management Structure
Olympus uses a matrix organizational structure that maximizes the use of corporate resources by interconnecting businesses
and functions in a balanced and efficient manner. The first layer of the matrix has business units on the vertical axis andfunctional organizations on the horizontal axis. Each business unit oversees its own strategies in accordance with group
strategy, and the functional organizations provide support to implement these strategies. The matrix helps to clarify andspeed up the process of group resource allocation, enabling the company to maximize its potential.
Management Structure in April 2016
PresidentInternal Audit Office

Medical management Officer (BMO)
Business
Dev.

GI&R

GS

Uro/Gyn

ENT

MedicalService

Scientific
Solutions

Imaging

Business Unit
Chief Regional Representative Officer
Functional Organization

Develop business strategy,
Requirements to Functions

Implement business strategy,
P&L responsibility

Chief Compliance Officer (CCO)
Medical Affairs & CSR Office
Quality and Regulatory Group

Realize functional requirements,
Strengthen function and improve efficiency across Bus,
Optimize company’s management resources

Chief Financial Officer (CFO)
Chief Improvement Officer (CIO)
Chief Administrative Officer (CAO)
Chief Technology Officer

Implement functional strategy,
Investment/Resource management(human resources & assets)

R&D Group
Manufacturing Group
Sales and Marketing Group29
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

CSR Promotion Structure and Risk Management
CSR Promotion Structure
To realize “Social IN,” our CSR-enhanced corporate philosophy, Olympus established the CSR Committee in fiscal 2010.
Under the umbrella of this CSR Committee, the Company has set up a number of promotion committees to plan andadvance individual CSR-related initiatives.
The CSR Committee meets at least twice a year and is chaired by the officer in charge of the CSR & Compliance Office.
Members include managers from each business unit and functional organization. Olympus aims to spread and entrench
CSR throughout the Group by having the CSR Committee support the decisions made by the president, who is ultimately
responsible for CSR, and overseeing the promotion and progress of important matters. The chair of the CSR Committee
reports its findings to the president and the Executive Management Committee at Olympus. When the president deems it
necessary, findings are also reported to the Board of Directors.
CSR Committee and Promotion Committees (Fiscal 2015)
CSR Committee
Deliberates on and advances activities related to risk management and BCP,
shares information and responds in the event of a crisis

Risk Management Promotion Committee………

Information Security Promotion Committee……… Deliberates on and advances activities related to information security

CSR Procurement Promotion Committee……… Advances CSR procurement

Safety & Health Promotion Committee……… Advances activities related to safety and health management

Social Contribution Promotion Committee……… Advances activities that contribute to society

Corporate Culture Committee
Environmental Promotion Committee………

Shares and nurtures corporate culture and organizational spirit, creates andimplements communication plans as needed……… Advances environmental activities

Risk Management System
Olympus has established a global risk management
Risk Management System (As of April 2016)
system to prevent risks from occurring and to
Task Force
President
mitigate risks when they materialize, based on its Risk
(activated in the event of a crisis)
Risk management leader
Management and Crisis Response Policy and its Rules on
Risk Management and Crisis Response.
CSR Committee
Specifically, Olympus has established the Risk
Risk Management
Management Promotion Committee as a promotion
Operations General Manager
Risk Management
Promotion Committee
function of the CSR Committee. The Risk Management
Promotion Committee promotes risk-reduction activities
at business units and sites based on risk assessments,
Internal Control Supervision
Each Department and Site
Department
and management periodically monitors the situation.
In the event a crisis arises and severely impacts the
Olympus Group, a task force is activated to properly
respond to the crisis and rapidly elevate information to the president and management.
In fiscal 2015, working groups were formed under the guidance of the Risk Management Promotion Committee tomitigate risks related to major earthquakes and the My Number national ID system. As a specific measure to address the riskof a major earthquake, four business sites conducted first responder drills involving the setting up of crisis response centersat each business site and taking steps to prevent secondary disasters from occurring.
In South Korea, we focused attention on measures to prevent the MERS virus from spreading. Overseas, we reinforced
our safety management systems to prepare for a major terrorist incident.

30
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

CSR in Procurement Activities (Supply Chain)
Basic Policy on Procurement
The Olympus Group aims to strengthen supply chain management within the context of business continuity and sustainablevalue creation in its three business segments: the Medical Business, the Scientific Solutions Business and the Imaging
Business.
In 2005, Olympus formulated the Olympus Group Procurement Policy based on its “Social IN” corporate philosophy.
Since then, Olympus has disclosed its basic stance on procurement both internally and externally through its website andtraining sessions, while strengthening compliance with laws, regulations and social norms. We have also drawn up the“Request to Suppliers” as a guideline for complying with laws, regulations and social norms, including respect for humanrights and the elimination of antisocial forces, prohibiting corruption and bribes, promoting fair and just transactions, andtaking the environment into consideration.
Based on these two principles for procurement activities, Olympus strives to create and strengthen good relationships
with its suppliers through fair, just and transparent transactions.
Olympus Group Procurement Policy
1. Compliance with Laws, Regulations, and Social Norms
Olympus complies with applicable laws, regulations, and social norms including those concerning the respect for human rights, including
the prohibition of child labor and forced labor, and anti-corruption and, carries out our corporate activities in a sound and fair manner. We
ask the suppliers of the materials and services used in manufacturing our products to do the same.
2. Green Procurement and Consideration for the Environment
In establishing green procurement standards in line with our Environmental Policy, and in its procurement activities, we endeavor to build asociety that has a sound environment and that is capable of supporting sustainable development.
3. Promotion of Fair and Impartial Trade
We open our doors wide to current suppliers and future suppliers all over the world. We conduct fair and impartial trade with its suppliers
according to the policies and procedures disclosed to suppliers.
4. Selection of Suppliers
Olympus selects suppliers based on a comprehensive decision on key elements for the appropriate procurement, including the managementof compliance with laws, regulations, and social norms, environmental considerations, quality and safety assurance and a stable supply,
management stability, technical capabilities, security of information, respect for the intellectual property of other parties, compliance with thedesignated delivery date and appropriate pricing.
5. Reinforcement of Partnership with Suppliers
Olympus endeavors to establish and maintain a relationship of trust with our suppliers based on mutual understanding.
6. Prohibition on Accepting Personal Interests
Olympus prohibits its employees from accepting any improper personal gifts, benefits or entertainment from suppliers.

System and Framework■ Initiatives with Suppliers● Share business strategies and procurement policy
Once a year, the Procurement Policy Meeting is held with key domestic suppliers for each business for the purpose of
sharing with them the business strategies and procurement policy of the Olympus Group.
In fiscal 2015, 863 representatives from 592 suppliers participated. We explained compliance matters that all suppliers
should know, such as conflict minerals and human rights issues, and asked for their cooperation in tackling these
problems.

31
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfile● Supplier survey
Once a year, Olympus conducts a web-based surveyof its main suppliers in Japan and overseas with which
it has ongoing business transactions. The survey
covers 181 questions, of which 23 are related to CSR,
related to management information, CSR initiatives,and delivery deadlines.
In fiscal 2015, about 97% of our approximately
1,000 suppliers responded to the survey. We have put
in place a system that encourages suppliers to make
improvements on their own initiative, and we consult
privately with suppliers on remedies if we believe they
have room for improvement.

GovernanceSociety

Environment

Key Evaluation Items in Supplier Survey for Initiatives with Suppliers
Evaluation
Criteria

Details

Management
information● Corporate information ● Financial condition

CSR● Compliance with laws, regulations and social norms● Protection of human rights (child labor, forced labor,
inappropriate low-wage labor)● Protection of worker rights (labor standards, occupationalsafety and hygiene)● Protection of the environment (CO 2 emissions, waste
discharged, environment-related chemical substances)

BCP● Business continuity strategy ● Production base information● Contact information during emergencies and disasters● Confirmation of supply chain● Confirmation of employee safety

Environmentand quality● Acquisition of ISO 9000 and ISO 14000● Procurement and process management (5Ms (materials,
methods, measurement, machinery, manpower), change
information, non-compliant treatments)

Delivery● Production plans ● Progress and distribution management

Information
protection● Personal and confidential information● Intellectual property ● Computer security● Audits of suppliers
Olympus periodically audits the status of CSR initiatives at overseas suppliers in regions with a high risk of human rights
and labor condition violations. Olympus hires specialist auditing firms to audit these overseas suppliers on 132 items in 11
fields based on the “Request to Suppliers.” The supplier receives the results of the audit and is encouraged to make anynecessary improvements. This information is also used to reassess items in the supplier survey. Olympus also makes onsite inspections to ascertain the production capacity of its suppliers in line with its policy of not placing overburdening orders
with suppliers, in an effort to avoid causing labor-related problems. In fiscal 2015, Olympus did not cause any labor-related
problems at its suppliers.
WEB Request to Suppliers http://www.olympus-global.com/en/common/pdf/procurement_request.pdf● Response to Conflict Minerals
The Olympus Group upholds international efforts to resolve the problem of conflict minerals*. On behalf of the Olympus
Group, the Olympus Corporation participates in a committee established by the Responsible Minerals Trade Working Groupof the Japan Electronics and Information Technology Industries Association (JEITA). Working together with suppliers, suchas by discussing the conflict minerals at procurement policy meetings, we ensure transparency in our supply chains andcontinue the procurement of parts and materials that does not cause human rights violations.

*Conflict minerals
The Democratic Republic of the Congo (DRC) and surrounding countries produce minerals such as tantalum, tin, tungsten, and gold. Armed groups
in the DRC, where the civil war continues, use these minerals to raise funds, causing human rights violations (child labor and sexual violence), as wellas environmental damage. In July 2010 the United States sought to cut off this supply of funds to armed groups by introducing an amendment to its
financial regulation law defining these four substances as conflict minerals. Companies listed in the United States that use conflict minerals are now
required to submit reports to the U.S. Securities and Exchange Commission (SEC). Other moves by international organizations, governments, NGOs
and industry organizations to solve this problem include the publication of the Due Diligence Guidance for Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas by the Organization for Economic Cooperation and Development (OECD).

32
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment■ Education for Adhering to Subcontract Act
Olympus promotes compliance with laws and regulations with the awareness that the Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors (the Subcontract Act) is a key piece of legislation.
In fiscal 2015, Olympus updated internal rules that were drawn up in the previous fiscal year related to complying with the
Subcontractor Act.
To thoroughly implement these rules, Olympus conducted e-learning training for its employees, and held internalbriefings about the procurement functions of the three key business segments. We will continue to review our training
content and methods to further enhance the process of adhering to the Subcontract Act.
■ Expansion of Scope of Compliance Helpline
Since June 2012, suppliers have had access to the Compliance Helpline, the internal reporting system at Olympus. In
conjunction with guidance provided on our website, we proactively engage with suppliers, such as through procurement
policy meetings.

Commitment to External Initiatives
In October 2004, Olympus joined the U.N. Global Compact, agreeing to uphold its 10 principles.
The Global Compact (GC) is a voluntary initiative to create a global framework within which companies
can contribute to good corporate citizenship and sustainable growth through responsible and creative
leadership. The 10 principles of the Global Compact are incorporated into our Corporate Conduct Charterand related policies, and are reflected in our business activities.
Olympus also supports initiatives concerning climate change under the Global Compact “Caring for
Climate” initiative, of which it has been a signatory since 2009.

External Evaluation of CSR Management (Fiscal 2015)
FTSE4Good Global Index Series
Olympus has been selected as a stock for inclusion in the FTSE4Good Global Index Series, an investment index consisting of thebest companies in the world in terms of social responsibility.

MS-SRI
Olympus has been selected as a stock for inclusion in the Morningstar Socially Responsible Investment (MS-SRI) Index.

33
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Labor Practices and Decent Work

Employment and Labor Relations

Basic Approach and Policy
Basic Approach
The Provision of Fair Opportunities section of the Olympus Human Rights and Labor Policy (see page 44) clearly states that
“Employees are our most valuable assets. We respect diversity, character, personality and the human rights of all employees,
and provide them with equal opportunities to fulfill their potential and improve their abilities as well as opportunities to work,
develop their abilities and gain promotion according to their level of competency.” We endeavor to reflect this stance.
We employ people on the assumption that employment will be long-term. Our salary system is based on job-related
qualifications and performance, and we have in place human resource systems aimed at cultivating employee growth overthe long term.

Promotion Structure
Employment and Labor Management Systems
In the Olympus Group, the president is ultimately responsible for personnel and labor issues such as human resource
strategy, human resource development and labor management, while the director in charge of personnel and labor issues
supervises individual activities. As multiple subsidiaries and in-house companies are sometimes located in one facility,each facility has its own facility general manager to ensure the comprehensive implementation of policies and measuresconcerning personnel and labor issues.
Organization of Personnel and Labor Issues
President
Human Resources Committee
Director in charge of personnel
and labor issues
Human Resources Subcommittee
Personnel Department

Proposes and implements humanresource strategies and systems

Facility General Manager

Facility General Manager

Facility General Manager

Activities include providing advice on
systems related to Group humanresource strategies and humanresource development, as well as thedeliberation of promotions

Facility General Manager

Labor management and otheractivities at individual facilities
Managers of business divisions such as affiliates and business groups

Systems and Mechanisms
Employment of People with Disabilities
Olympus works proactively to employ people with disabilities. In April 2009, we established Olympus-Supportmate Corp. as a
special-purpose subsidiary*. This company creates working environments and working conditions that are appropriate both forthe nature of each individual’s disabilities and for operational requirements and strives to ensure ongoing employment.
*Special-purpose subsidiary
A subsidiary approved by the Minister of Health, Labour and Welfare under the provisions of Article 44 of the Act on Employment Promotion, etc., of
Persons with Disabilities as an organization that gives special consideration to the employment of people with disabilities and is deemed as one of thebusiness offices of its parent company

34
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Employment of the Elderly
In Japan, Olympus has a system to continue employing employees who want to work for the Company after reaching theretirement age of 60 until they become 65 years old.

Welfare System
In Japan, we provide employees with a welfare system to share the medical, childcare/nursing care and self-enlightenment
expenses they have to pay. Specifically, we give priority to implementing measures to support employees who are in need ofsupport or strongly committed to self development, including employees who pay for home nursing care and home bathing
services, babysitting, childcare facilities and language learning.

Labor-Management Consultation
The Olympus management team provides regular opportunities to engage in labor-management consultations, both
centrally and at individual facilities, such as during its twice-annual Central Labor-Management Council with the Olympus
Labor Union. Such councils serve as a forum for discussing improvements in labor conditions and corporate culture reforms.
In fiscal 2015, during labor-management consultations we discussed and came to agreement on such items as a revisionof basic salaries.
As of May 15, 2016, 71% of the 4,983 employees not in management positions were members of the labor union.

Minimum Notice Period Regarding Operational Changes
Olympus recognizes that personnel transfers and other changes have the potential to affect employees’ lifestyles.
Accordingly, in principle our collective agreement sets one month as the preparatory notice period.

Employment-Related Data
Indicators

Fiscal 2015

BreakdownMen

By gender*1

Employees (people)

6,725
By age291
By age

30s

40s

735

2,172

2,177

Men

182
By ageRate of return to work following
childbirth, childcare leave (%)

229

97.8

40s

198

86

7

Men

Retention rate following
childbirth, childcare leave (%)

93.5

Percentage of employees withdisabilities*3 (%)

1.89

151

0
31

30s

40s

13

42

13

By age50s and older
Women

20s and younger

By gender

1,641
62

30s

Men

50s and older
Women

20s and younger

By gender
Leaving the Company*2 (people)938

20s and younger

By gender
New employees (people)

Women

5,787

50s and older
114
Women

100

97.5

Men

Women

97.2

91.2

Totals for Olympus Corporation and Olympus Medical Systems Corporation*1 Permanent and contract employees as of March 31, 2016
*2 Includes 103 people retiring*3 As of March 31, 2016. Overall OT Group: Olympus, Olympus Medical Systems, Olympus Medical Science Sales, Olympus Software Technology,
Nippon Outsourcing Corporation, Nagano Olympus, Olympus-Supportmate

35
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Labor Practices and Decent Work

Occupational Safety and HealthOccupational Safety and Health
Basic Approach and Policy
In order to prevent industrial accidents and maintain healthy working environments with vitality, Olympus has set forth“Ensuring Occupational Safety and Health” in the “Olympus Group Corporate Conduct Charter” (see page 23) andestablished the “Occupational Safety and Health Basic Policy.”
Basic Policy on Group-wide Occupational Safety and Health
1. The Olympus Group will support the mental and physical health of all employees while working diligently to promote a workplaceenvironment in which employees can carry out their duties in comfort and with peace of mind.
2. The Olympus Group will observe the Industrial Safety and Health Law as well as all related regulatory requirements. The Group will
fulfill its responsibilities in ensuring the proper management of employees’ health while addressing all safety concerns.
3. The Olympus Group will implement and support activities aimed at preventing accidents in the workplace as a part of efforts toeliminate any and all industrial incidents.

Occupational Safety and Health Promotion Structure
In order to implement the “Occupational Safety and Health Basic
Policy,” Olympus has established the “Safety & Health Promotion
Committee,” which is chaired in Japan by the general managerof the Human Resources Division. The members who make up
the committee are the representatives of the Safety & HealthCommittee established in each business of our headquarters andin affiliated companies, the labor union, and the industrial doctorsof each facility.
The Safety & Health Promotion Committee tracks generalsafety and health and health management activities at eachbase and shares the causes, countermeasures, and preventive
measures for occupational accidents with the aim of improving
overall Group activities by presenting remedial guidelines andinformation about legal amendments to all bases.
Overseas, we are pursuing activities based on compliancewith laws and regulations in each country.

Safety & Health Promotion Committee
Chairman

Personnel Department Manager

Secretariat

Personnel
Department Safety& Health GroupOlympus businesses’ andaffiliated companies’ Safety& Health Committees

Safety & Health Promotion Activities
At the beginning of every year, Olympus establishes the “Activity Policy” for occupational safety and health and healthmanagement in accordance with the “Occupational Safety and Health Basic Policy,” and promotes activities utilizing the
PDCA cycle.
Because the number of industrial accidents is increasing, since fiscal 2012, we have promoted a variety of measures on
the priority topic of the “reduction of the number of industrial accidents.” However, in fiscal 2014, such accidents numbered48, but decreased by 10 in fiscal 2015.
In fiscal 2016, we will continue to reinforce the organizational structure to promote safety and health. Above all, we plan toput our energy into augmenting the system for controlling chemical substances, securing needed personnel, and promoting
risk management and educational activities at each facility.

36
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileNumber of Industrial Accidents(work time lost/no work time lost)Work time lost

(Frequency rate)
0.8

0

20

0.6
17

16

15

10

0.4
12

10
5

0.65

0.59

25

15

17

2011

0.22
0.2

9

2012

5

3

2013

0.34

0.29

10

9
4

Environment

Incidence Ratio of Industrial Accidents

26

19

Society

No work time lost

(Incidents)
30

20

Governance

2014

2015

(FY)

0

2011

2012

2013

2014

2015

(FY)

*Scope: The Olympus Group in Japan
Number of workers, incl. temporary workers(average total) x 1,920…①
Industrial accidents (work time lost) ÷① × 1,000,000 = Incidence ratio

Number of Fatal Accidents

Number of fatal accidents

FY2011FY2012FY2013

FY2014FY2015

0

0

0

0

0

Health Management
Basic Approach and Policy
In addition to health management activities as industrial healthcare, in cooperation with the Health Insurance Association,
we support health promotion activities for employees. In fiscal 2015, we began the “Mind and Body Vitality Project,” which
promotes activities with an emphasis on (1) prevention of lifestyle-related diseases, (2) early detection of cancer, and (3)prevention of mental health disorders.

Mind and Body Vitality Project 2015
■ Basic Policy for Activities
We will promote the creation of a healthy and vibrantcorporate culture for both mind and body with oursights set on the “Realization of a Better Livelihood andHappiness” for each and every individual.

You andyour family
Realization of a high levelof health awareness andproper lifestyle

Invest in health
Increase vibrancy
and productivity■ Priority Activities(1) Prevention of lifestyle diseases(2) Early detection of cancer(3) Prevention of mental health disorders

Realization of
a Better Livelihoodand Happiness

Health promotion
activities
Appropriate medical
expensesGroup company

Collaboration

Health insurance

Realize healthy working
environments withvitality(Collaborative
health)Promote the health of
employees andtheir families

Health Management Support System
Olympus is developing and strengthening Systematic Health Management by allocating industrial doctors, health workers,
and nurses depending on the size of the facility.
In the Health Insurance Association, we actively support the implementation of cancer screening tests, prevention oflifestyle-related diseases, and individual health promotion activities.

37
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Number of Medical Staff and their Role
Headquarter
Facilities

Headquarters Branch/
Sales Offices

Affiliates/Sales
Companies

Supervising industrial doctors

○

○

○

Industrial doctors
5

○

○

○

Health workers/nurses
25(Employed in headquarters/
Employed in affiliates)

○
(13)

○
(3)

○
(9)

Counselors
Psychiatrists(Contracted: 3)

○

––

○
Workers inheadquarters facilities● Collaboration with industrial doctors/
medical care workers

Contracted industrial doctors
8––○(Partial)○(Core factories)● Cooperation with industrial doctors/
medical care workers

Roles● Hiring decision/Interview● Overwork/Mental support● Contracted industrial doctor follow-up● Subsequent measures● Specific health guidance● Health support seminar■ Health Examinations and Health Counseling

In cooperation with the Health Insurance Association, we are enhancing our routine health examination offering. In optional
screening, we have introduced endoscopic tests.
We are also holding events such as seminars on physical exercise for the prevention of lifestyle-related diseases
and non-smoking seminars to provide employees with more opportunities to receive advice on their health, including
mental health.
We require routine health examinations for expatriate employees sent to work abroad and we follow up on the healthmanagement of employees and their families. We deploy industrial doctors, health workers and nurses and we interview
them when they are appointed and when they return from assignment, and also conduct daily health counseling. In
addition, industrial doctors make routine site visits and we have enhanced our health management activities for expatriates.

■ Cancer Screening Tests

Health examinations offer enhanced cancer screening tests using endoscope and support the early detection of cancer.
● Most of the cost of cancer screening tests is paid by the Health
Insurance Association. (For lung and brain cancer screening, however, employees pay half the cost.)● Employees aged 35 or older can choose to have stomach and colon cancer screening using endoscopes.
● Gynecological (breast cancer and cervical cancer) screening can be received without age restrictions.
● Dependent family members aged 30 or older are also eligible for cancer screening provided by the Association.

Cancer Screening Test Support System
Examination Item

Target

Health Insurance Cost Subsidy

Years Consultation Encouraged*

Gastric cancer (endoscope)

35 years and older

100% coverage

Once every two years

Gastric cancer (pepsinogen examination)

35 years and older

100% coverage

Year that gastroendoscope exam is notundertaken

Bowel cancer (endoscope)

35 years and older

100% coverage

Once every three years (40 years and older)

Bowel cancer (fecal occult blood test)

35 years and older

100% coverage

Year that large bowel endoscope exam is
not undertaken

Breast cancer/Cervical cancer

Women of all ages

100% coverage

Once every two years

Prostate cancer (PSA marker)

Men 50 years and older

100% coverage

Once every two years

Abdominal ultrasonography

40 years and older

100% coverage

Once every two years

Lung cancer (lung helical CT)

40 years and older

50% (Limit of ¥5,000 including tax)

Individual decides whether to receive
health exam*Consultation encouraged: For those who have not yet taken the exam from the target age to retirement (depending on item) (call/recall)

38
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment■ Mental HealthIn addition to focusing on the creation of a stress check system mandated by legal revisions, combined with the four typesof care listed below, we support everything from preventive action to treatment for the mentally ill, and those returning towork after an absence due to mental illness.
● Education on mental health using e-learning tools and other methods● Consultation and daily care service provided by industrial doctors and other health staff● Consultation service and seminars provided by external psychologists

Occupational Safety and Health Initiatives
Priority Topics

Priority Initiatives
FY2015FY2016● Strengthen risk assessment• Promote and strengthen Hiyari-Hatto activities• Prepare, implement, and assess risk reduction
measures● Ensure the wearing of protective equipment● Enforce strict measures to prevent recurrences inthe event of disaster● Promote educational activities for disaster prevention● Clarification of division of responsibility in the eventof an industrial accident● Report to management in the event of a serious
work-related injury or an equivalent industrial
accident and horizontally expand recurrence
prevention● Risk prevention training and activities to return tothe basics of risk assessment● Rigorous recurrence prevention measures in theevent of a disaster● Promotion of educational activities for disasterprevention● Promotion of inspection and educational activities
for the workplace environment to prevent falling
down injuries (the Ministry of Health, Labour, andWelfare’s promotion of the “STOP! Falling-Down
Injuries Project”)● Support for legal reforms● Optimal operation of the Safety & Health Promotion
Committee● Support for chemical substance risk assessment● Respond to new revisions based on notificationfrom the Ministry of Health, Labour, and Welfare● Develop management system (OIS, etc.) for
Occupational Safety and Health● Promotion of health management activities• Full support for health examinations (routine/
special/specific procedures, etc.) and subsequent
measures• Thoroughly conduct doctor interviews tounderstand overworked people being studied(including managers)• Promotion of employee educational programs tostrengthen health management activities● Promotion of health management activities• Full support for health examinations (routine/special/
specific procedures, etc.) and subsequent measures• Thoroughly conduct doctor interviews tounderstand the overworked people being studied(including managers)• Promotion of employee educational programs tostrengthen health management activities• Standardization of health management and mental
health measures

Mental support● Promotion of mental health measures• E xpand mental health eduction (review educationfor each level of the organization)• Understand and discuss the challenges of
workplace conditions through the reality of long
working hours• Preparation and implementation for stress checks(legal revisions)• Promotion of activities to prevent harassment due toabuse of authority● Promotion of mental health measures• Introduction of mental health stress check support
system• E xpand mental health eduction (review educationfor each level of the organization)

Overseas healthmanagement● Industrial physician conduct of on-site inspection
and seminars● Understand expatriates’ health examination results
and create a follow-up system● Industrial physician conduct of on-site inspection
and seminars● Understand expatriates’ health examination results
and create a follow-up system

Reduction of the number ofindustrial accidents

Strict legal compliance

Health promotion activities(data health)Deployment support

39
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Labor Practices and Decent Work

Training and Education

Basic Approach and Policy
Basic Stance on Personnel Systems
Olympus considers that people are the most important management resource. We respect individuals and strive to be anorganization that responds swiftly and systematically to changes in the management environment. To this end, we placea priority on realizing a bountiful society through individual self-reliant professionals effecting autonomous change andresponding to changes in society.
We trust in the motivation and vitality of such employees. We also recognize the importance of fairly evaluating theresults and successes that their individuality and capabilities engender and believe in compensating them appropriately.
Within our human resources system, we have formulated capacity development guidelines for recognizing the successes
and capabilities called for in individual employees. We have also introduced a management by objectives system, MBO-S,
to support the development of individual employees’ capabilities.

Promotion Structure
System to Promote Training and Education
In April 2016, Olympus established the Education Training Department, which handles tasks including strategic planningof education and career development for Group employees in Japan, as well as the planning and implementation ofsystematic programs.

■ Roles of the Education Training Department

Education Supervision Group
Career Development Group

General Education Group(1) Managing educational systems for the Group in Japan(2) Planning and providing education for management and management candidates(1) P lanning and conducting rank-specific education consistently throughout the Groupin Japan(2) P lanning and implementing leadership development measures for employees at thegeneral manager level and below(3) Planning and implementing measures to support employee career formation(1) P lanning and conducting education on general knowledge consistently throughout
the Group in Japan(2) Planning and providing education for personnel stationed overseas(3) Serving as the companywide e-learning secretariat

Systems and Mechanisms
MBO-S* Management By Objectives/Assessment System
Olympus has established its own management by objectives/assessment system, called MBO-S, to help employees
decide individually what they will focus on in their jobs and grow to reach their targets. Every six months, employees meetwith their superiors to confirm their level of quantitative and qualitative achievements and set goals for the next six months.
Employees enhance their skills through the repetition of such interviews. Rather than temporary operating performanceincreases, this approach aims to foster the sustained growth of individual employees over the medium-to-long term.
*MBO-SAn acronym for “management by objectives and self-control,” MBO-S applies to approximately 5,200 permanent, non-management employees of
Olympus Corporation, including those overseas.

40
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

The “Olympus College” Capability Development System
Olympus has established an internal education system called the Olympus College. Each year, the college offers more than
250 courses, including management training, business training, technical training and global training.

Manufacturing Technicians Training Program
Olympus regards manufacturing technicians as animportant source of our added value. The skills of suchtechnicians are categorized into six levels and staff
are encouraged to improve their skill level in a planned
manner. We group the technicians with skills of level 1
to 3 into “Skilled Workers” and those with skills of level
4 or greater as “Highly Skilled Workers.” Highly Skilled
Workers are certified as a Manufacturing Advisor (MA)at level 4, Manufacturing Supervisor (MS) at level 5, andManufacturing Master (MM) at the final level 6. Training
is given according to each level, from newly joining staff
members to MM technicians.

Levels in the Olympus Highly Skilled Worker Incentive System

Level 6
MM
Level 5MS

HighlySkilled Workers
Entry to the National
Skills Grand Prix,
instructing in externalorganizations and Skill
Dojo (Skill School)

Level 4
MA
Level 3Skilled Workers
Level 2
Level 1

Training in OTS and
Skill Dojo, taking
external qualification
exams

Developing Human Resources Overseas to Become Manufacturing Workers
Olympus proactively promotes human resources education at its manufacturing bases overseas. For example, theShenzhen Factory in China, which manufactures digital camera and microscope products, has an internal qualification
system for lens polishing and coating skills based on the national qualifications in Japan. Our Shenzhen and Vietnam
factories have also introduced qualification systems for bonding and soldering work based on Japanese certification
programs. For initiatives such as these, experts from Japan visit local factories and provide instructions and guidance aswell as the qualification test.

41
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Labor Practices and Decent Work

Diversity and Equal Opportunity

Basic Approach and Policy
Basic Policy
To continue creating new value as its business grows increasingly global, Olympus believes in the importance of providing
opportunities for people of diverse capabilities, resolve and lifestyles to play an active role. The Olympus Group Codeof Conduct (see page 23) clearly states our focus on “respect for diversity” in human resources. In accordance with thispolicy, Olympus does not discriminate based on race, beliefs, gender, age, social position, family lineage, nationality,
ethnicity, religion or disability in carrying out every facet of its business activities.

Promotion Structure
System for Promoting an Active Role for Diverse Human Resources
At Olympus, the human resources department serves as the locus for dialogue with employees and the labor union,
providing systems to support an active role for diverse human resources and appropriately drafting and implementing
measures. In fiscal 2015, for example, we held discussions on topics such as expanding the scope of application for the
work-at-home system, leading to an expansion of the system on a trial basis.

Systems and Mechanisms
Diversity of Human Resources
Olympus excludes any gender discrimination in terms of employment, promotion, and salary increases, and actively
promotes human resources who are equipped with highly specialized skills and an ethical approach. As of the end of June
2016, the number of female managers stands at 22, and 125 are registered as managerial candidates. Also, there is one
female external director as of the end of June 2016. Each year, the percentage of women continues to increase.
We make proactive use of excellent human resources regardless of their nationality by putting the right person in theright place.

Work-Life Integration
Olympus began promoting work-life integration activities at Group companies in Japan in 2011 to help employees
maximize their capabilities and proactively continue their careers in periods when they need to take care of children orother family members. To help employees achieve a work-life balance and generate work-life synergies, we are formulating
and introducing systems under four themes: (1) promoting diversity, (2) supporting the cultivation of the next generation, (3)enhancing labor productivity and (4) promoting health.
In April 2016, we expanded the scope of application of the work-at-home system so that it could be used by more
employees. We expanded the system from workplaces with discretionary working hours to include other workplaces, andrevised our employment regulations and labor agreements accordingly.
WEB Promoting Work-Life Integration http://www.olympus-global.com/en/csr/innovation/lively/support/

Action Plan Based on the Next-Generation Act
Olympus has formulated a general business operator action plan based on the Act on Advancement of Measures to
Support Raising Next-Generation Children (Next-Generation Act).
WEB General Business Operator Action Plan Based on the Act on Advancement of Measures to Support Raising Next-Generation Children (Only in Japanese)
http://www.olympus.co.jp/jp/csr/innovation/lively/actionplan/

42
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Receiving the Kurumin MarkOf the companies that formulate action plans under the Act on Advancement of Measures to Support
Raising Next-Generation Children (Next-Generation Act), those that achieve the targets specified in thoseaction plans and meet certain standards may apply to be recognized as companies that support theraising of children and receive Kurumin accreditation from the Minister of Health, Labour and Welfare.
Olympus received Kurumin accreditation from the Minister of Health, Labour and Welfare in March 2016.

Action Plan Based on the Act on the Promotion and Advancement of Women
Olympus has formulated a general business operator action plan based on the Act on the Promotion of Women’sParticipation and Advancement in the Workplace (Act on the Promotion and Advancement of Women), which was adopted
in August 2015.
WEB General Business Operator Action Plan Based on the Act on the Promotion and Advancement of Women (Only in Japanese)
http://www.olympus.co.jp/jp/csr/innovation/lively/woman/

43
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Human Rights

Basic Approach and Policy
Basic Policy
Olympus supports the United Nations Declaration of Human Rights and Global Compact. To put international initiatives
into practice in our business activities, we have also clearly spelled out the respect for human rights in the Olympus Group
Corporate Conduct Charter and the Olympus Group Code of Conduct (see page 23). In addition, we have formulated the
Olympus Group Human Rights and Labor Policy and strive to respect human rights in the management of our businesses.
We also urge our business partners to comply with the protection of human rights.
Olympus Group Human Rights and Labor Policy
The Olympus Group upholds the concept of Social IN as its management philosophy for all corporate activities and abides by its Corporate
Conduct Charter. Based on these norms, we support the Universal Declaration of Human Rights, which was adopted by the United Nationsin 1948 and the international norms on human rights, including the United Nations Global Compact's principles on human rights and labor.
Accordingly, we are committed to respecting human rights in our business management and also expect our business partners to respect theprotection of human rights.
1. Provision of Fair Opportunities
Employees are our most valuable assets. We respect diversity, character, personality and the human rights of all employees, and provide
them with equal opportunities to fulfill their potential and improve their abilities as well as opportunities to work, develop their abilities andgain promotion according to their level of competency.
2. Safe and Comfortable Working Environment
We strive to create workplaces where employees can work in a safe and healthy setting both physically and mentally, and to provide all our
employees with an environment that will help them work with enthusiasm.
3. Respect for Human Rights
We support and respect the protection of internationally proclaimed human rights within our sphere of influence, and ensure that we are notcomplicit in human rights abuses.
4. Respect for the Rights of Workers
We respect the rights of workers to organize labor unions and bargain collectively in line with local laws and established practice.
5. Elimination of Forced Labor
We pledge not to use any forced or bonded labor in the production of our products or services.
6. Elimination of Child Labor
We comply with local minimum age laws and requirements and do not employ child labor.
7. Elimination of Discrimination
We strive to eliminate discrimination based on race, belief, gender, age, social status, family lineage, nationality, ethnicity, religion, disability,
or of any other type in all our business activities.

Systems and Mechanisms
Initiatives with Suppliers
Olympus has adopted the “Request to Suppliers,” a document defining its expectations toward suppliers in such areas asrespect for human rights, compliance with laws, regulations and social norms, including the laws concerning the exclusion ofantisocial elements, the prohibition of corruption, bribery and similar behavior, the promotion of fair and equitable trading, andconsideration for the environment. Once each year, we use a Web-based system to conduct a corporate survey in this regard(see page 32) targeting major suppliers in Japan and overseas. We also regularly check on the status of CSR initiatives.

44
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Human Rights Due Diligence
Olympus strives to verify and further strengthen initiatives targeting human rights issues within the Company. To this end,
since 2012 we have taken part in Human Rights Due Diligence Workshops, a stakeholder engagement program organizedby the Caux Round Table Japan, thereby clarifying some of the critical issues in each business sector. In 2014, we took
part in the 2014 Global Conference on CSR and Risk Management (co-hosted by Caux Round Table Japan and the
UN Working Group on the Issue of Human Rights and Transnational Corporations and Other Business Enterprises andsupported deliberations concerning “business and human rights.” In fiscal 2015, we continued to participate in the Human
Rights Due Diligence Workshop, determining key human rights issues in the manufacturing sector along the value chain.
WEB Reports and related materials of Caux Round Table Japan http://crt-japan.jp/en/portfolio/human-rights-due-diligence-workshop/

Preventing Harassing Behavior
Olympus works to prevent any form of harassing behavior that injures human dignity, including sexual harassment andpower harassment, and takes prompt and appropriate steps to resolve such situations should they occur. We have set up
the Harassment Hotline for this purpose at each business site. Similar hotlines are also in place at affiliated companies.
We have prepared a manual for using this hotline, and we endeavor to adhere appropriately to its clearly stated content,such as protecting the privacy of people making claims and injured parties, ensuring the confidentiality of the matter andprohibiting any disadvantageous treatment as a result of seeking such consultation.

45
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Fair Business Practices

Systems and Mechanisms
Prevention of Bribery
Olympus will never engage in actions that could be deemed to be bribery in its dealings with any of its business partners,
such as government officials, both nationally and internationally, and employees of government agencies (includinginternational agencies), or any other parties. In addition to having established our own rules based on key laws andregulations and thoroughly educating our employees on those rules, we are working on the prevention of actions that could
be interpreted as bribery by tightening the rules governing external dealings and internal consensus decision-making aswell as by implementing process controls.
Having formulated guidelines covering the prevention of bribery and in addition to “Requesting Your Support for the
Olympus Group Guideline and Your Cooperation in Fighting Corruption” set out below, the Olympus Group has been
disclosing its guidelines on its website since April 2015.
WEB Olympus Group guidelines covering the prevention of bribery http://www.olympus-global.com/en/csr/integrity/fairness/anti-bribery/compliance.jsp

Requesting Your Support for the Olympus Group Guideline and Your Cooperation in Fighting Corruption
In line with the Corporate Conduct Charter, the Olympus Group insists that each director and employee of the Group will resolutely upholdlegal compliance under any circumstances and will not tolerate any act or behave in such a manner which is contrary to any laws, social norms
or Olympus internal rules or policies. Olympus has made a strong commitment to conduct all aspects of its business in an honest and highly
ethical manner throughout the world.
Corruption and unfair competition are two ethical issues at the heart of Olympus’ Social IN initiatives. These issues are under review by all
global stakeholders. In light of our culture as an ethical company, and in the spirit of global citizenship, Olympus has adopted stricter policies
and established an effective preventative mechanism.
I am writing to inform you once again of Olympus’ basic approach to the prevention of bribery and corruption. We have prepared a guideline thatsummarizes what actions you will need to take in order to support Olympus’ initiatives. We believe that our (Olympus’) efforts alone will not be
sufficient to achieve full compliance. We need your support and action to achieve this vitally important social and ethical contribution to our society.
Thank you in advance for reading through the Guideline and for your continued cooperation and support.

Exclusion of Antisocial Forces
Olympus will have no involvement with organized crime syndicates, or any other antisocial forces that threaten the order ofsociety, and will never engage in actions that could support their activities.
We will respond resolutely and in accordance with the law to any fraudulent demands from antisocial forces. In July 2012,“Regulations for the Elimination of Antisocial Forces” covering the Company and domestic Group companies were formulated
and, in principle, we conclude contracts or memorandums of understanding incorporating provisions relating to the exclusionof antisocial forces with all new business partners (including clients and suppliers as well as partners in joint research).
We have also been asking the parties with which we have done business since before the formulation of theregulations to sign the same memorandum of understanding requiring the exclusion of antisocial forces at the time of
their contract renewals.

Prevention of Insider Trading
Olympus is determined to ensure the fairness and soundness of security markets and earn the trust of shareholders andinvestors by working to prevent insider trading. Formulated in June 2012, the Insider Trading Prohibition Regulations clearly
forbid use of undisclosed information gained through activities related to trading in stocks, and continuous education andtraining about these regulations is provided to all employees.
We have adopted rules, such as those concerning the buying and selling of our own shares by directors andemployees, and we consistently comply with those requirements, including the submission of notices concerning suchtransactions.
In fiscal 2015, in addition to twice holding training sessions, for which lecturers from the Tokyo Stock Exchange wereinvited, designed for employees from corporate divisions who have ample opportunity to come into contact with insider
information, the Company held training on insider trading prevention for new employees.

46
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Security export control and appropriate import declaration
The Company works in compliance with security export control regulations in Japan and other countries concerned.
Since 2007, as a result of having set up an export control system that conforms to the Compliance Programs designatedby the Ministry of Economy, Trade and Industry, the Company received certification as an Authorized Economic Operator(AEO)*1 by Japan Customs and received preferential treatment as a company with superior export controls. To maintain andenhance this system, the Company provides appropriate training for directors and employees in Japan.
Furthermore, we are establishing a global system to respond to the enhancement of regulations in nations andextraterritorially applied regulations in cooperation with headquarters and Business Centers in various countries. The
Company understand importance to share regulatory information and classification data of products with them.
As a part of these initiatives in fiscal 2015, we investigated the actual situations with regard to trade controls at the regional
headquarters and major Manufacturing Business Centers in Europe, the Americas, and Asia, and formulated a mediumterm plan toward making further improvements in the level of control on a global basis. At the same time, we also started toformulate common Group rules (Rules on Security Export Control in Olympus Group ) to maintain appropriate trading.
On the other side, paying the appropriate tax for imported goods is an important area of responsibility as a company.
Therefore, as a general rule with respect to products and parts procured from overseas, it is assumed that the Trade
Control Division will have verified the import declaration price, which forms the basis of the tax payment, prior to theplacement of the order. The Company works to declare price correctly by having the verification of import declarations
performed centrally by the Trade Control Division that possesses the specialized knowledge.
*1 AEO (Authorized Economic Operator)
A program that offers relaxed or simplified custom processes to operators certified as having sufficient security and legal compliance systems inplace for managing shipments, in order to ensure both security and smooth operations in international distribution. In Japan, the program is certified
by Japan Customs.

Implementation Status of Training Designed to Maintain Security Export Control and Appropriate Import Declaration(Japan/Fiscal 2015)
TargetAim/Description of Training

Directors

Overviews and explanations by outside lecturers on export controls tofacilitate understanding of importance of export controls and risks

Employees with ample opportunity for
involvement in import-export duties(Centered on overseas sales,
procurement, and technicaldevelopment divisions)

Overviews of important relevant laws and regulations, descriptions ofregulations, points to be aware of in business practice, commentaries
on internal/external violation case studies. For employees in TechnicalDevelopment Division, practices of classification and explanations centering
on important points to bear in mind when importing trial products

Directors and employees working inJapan (including affiliated companies)

Basic awareness of import-export controls (e-learning program)

47
OLYMPUS CSR REPORT 2016

Number of Attendees
24
Import training: 340
Export training: 179
9,152

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Disclosure of Medical Business Information
Developing and manufacturing medical equipment such as endoscopes, Olympus held an Ethical Committee meeting
and assessed propriety from the points of view of ethics, science and reliability as well as conflicts of interest in its medical
research to respond to the “Ethical Guidelines for Medical and Health Research Involving Human Subjects” that came into
effect in April 2015. The Company ensured the independence of the Committee by having it comprise internal and external
experts not directly involved in the research. The scope of the assessment was all of the medical research conductedby the Company and Group companies in Japan to which the ethical guidelines apply. The Company discloses theCommittee’s rules, register and summary of proceedings by registration on the Ministry of Health, Labour and Welfare’s
Ethical Review Committee Reporting System.
Furthermore, as a member of the Japan Federation of Medical Devices Associations (JFMDA) and in line with theFederation’s “Transparency Guidelines for the Medical Device Industry and its Relationships with Medical Institutions
and Other Organizations,” the Group set its “Transparency Guideline for the Relation between Corporate Activities andMedical Institutions and Other Organizations” that has been publicized on the Company website since February 2013. In
its relationships with medical institutions, from fiscal 2013 Olympus has also placed on its website information on payments
to medical institutions by fiscal year, in line with its Guideline and to assist understanding that business activities have been
conducted under fair and proper judgment.
In November 2015, the Company established a Medical Affairs Division to plan and promote strategies to properly
undertake value creation activities and proposal activities relating to its own products and services. The Company is also
encouraging efforts toward the further strengthening of its compliance system.
Olympus Group “Transparency Guideline for the Relation between Corporate Activities andMedical Institutions and Other Organizations”
1. Basic Policy
In accordance with its “Social IN” philosophy, Olympus* is keenly aware of the fact that business corporations are also members of society,and it will continue to provide the value sought by society by bringing health and happiness to human lives through its role as an entity thatis seen as essential by people with diverse values throughout the world. In addition, Olympus has adopted the Olympus Group Corporate
Conduct Charter, which requires every employee and management executive to pledge not only to comply with laws and regulations,but also to maintain high ethical standards and act responsibly, after determining the correct course of action. Under all circumstances,
Olympus will consistently apply the spirit of compliance and will never tolerate any actions that contravene laws, regulations, social norms
or internal corporate rules. To ensure that society at large is aware that it conducts its corporate activities in accordance with these ethicalvalues in the context of its relationships with medical institutions, etc., Olympus has adopted these guidelines and discloses information
about payments to medical institutions, etc., in accordance with the “Transparency Guidelines for the Medical Device Industry and its
Relationships with Medical Institutions and Other Organizations,” as compiled by the Japan Federation of Medical Devices Associations(JFMDA), of which it is a corporate member.
*These guidelines apply to Olympus Corporation and Olympus Group companies in Japan that are members of JFMDA.
2. Scope of Application■ Olympus
Olympus Corporation and Olympus Group companies in Japan that are members of the Japan Federation of Medical Devices
Associations (JFMDA)■ Medical institutions and other organizations

Scientific societies, university medical departments (affiliated hospitals), hospitals and clinics, associations of technologists, research
institutes, research groups, other facilities that provide medical care or conduct research, development or clinical trials, and persons
employed in the medical sector
3. Disclosure Methods
Related information for the previous fiscal year will be disclosed on the Olympus website.
4. Timing of Disclosure
Information about payments to medical institutions and other organizations in each fiscal year will be disclosed after the announcement offinancial results for that fiscal year.
5. Scope of Disclosure
The information disclosed by Olympus will apply to payments made by Olympus to medical institutions and other organizations, in the
categories of research and development expenses, academic research support expenses, manuscript writing fees, etc., expenses related to
information provision, and other expenses.

For more details on the “Scope of Disclosure” please visit the website of the Japan Federation of Medical Devices Associations (JFMDA)
WEB JFMDA Transparency Guidelines http://www.jfmda.gr.jp/promotioncode/pdf/120524_clear_02_e.pdf

48
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Proactive Information Disclosure
In line with its “Information Disclosure Policy,” Olympus strives to gain the understanding and trust of all stakeholders,
including shareholders and customers, through fair, timely, appropriate and proactive disclosure of corporate information,
including management policies, financial status, information about business activities and CSR activities.
In fiscal 2015, the Company agreed with the aims of the Corporate Governance Code, the adoption of which
commenced in June 2015, and used each principle contained in the Code as the basis for formulating its own “Basic Policy
for Corporate Governance,” which was disclosed and publicized in its entirety in a timely manner. In addition, with the aim ofraising the effectiveness of the Board of Directors, the Company implemented self-assessments of the Board of Directors,
adding to those from third-party viewpoints, and posted an outline of the analysis results of those assessments on the
Company website.
Olympus Information Disclosure Policy
The Olympus Group (hereinafter “Olympus”) works in all its corporate activities through a fundamental philosophy called the “Social IN”
management philosophy. The Social IN management philosophy expresses our commitment to help all people achieve health and happiness intheir lives by working as an integral member of society, by sharing our values and by offering new values to society through our business activities.
In accordance with this philosophy, Olympus strives to gain the understanding and confidence of all stakeholders, including shareholders
and customers, through fair, timely, appropriate and proactive disclosure of corporate information, including management policies, financial
status, information about business activities and CSR activities.
1. Information Disclosure Standards
Olympus is committed to the disclosure of information in accordance with all laws, as well as the rules of the financial instruments
exchange where the Company is listed, and to the disclosure of all information required by laws, regulations and rules. In accordancewith its internal disclosure standards, Olympus will also proactively disclose all information that could have a significant impact on its
corporate value, as well as all information deemed as useful to all stakeholders, regardless of whether such disclosure is required underlaws, regulations or rules.
2. Method of Information Disclosure
Disclosure information, as required by the Timely Disclosure Rules of the Tokyo Stock Exchange, will be disclosed through the Timely
Disclosure network (TDnet) of the Tokyo Stock Exchange. Such information will then immediately be posted on our website. Furthermore,
any information not subject to disclosure under laws, regulations or rules will be disclosed by using the most appropriate methods, including
the TDnet, our website, explanatory meetings or printed publications.
3. Disclosing Information with Due Consideration
When disclosing information, Olympus will take care to protect personal information and avoid infringements of the rights of any party.
Olympus will establish corporate rules concerning procedures for the disclosure of information using the aforementioned methods and all
information disclosure will be implemented in accordance with those rules.
(Applicable Scope)
The Information Disclosure Policy of Olympus is applicable to all Olympus group companies.

49
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Information Security
In recognition of the proper handling and protection of information as a social responsibility, the Group formulated the“Olympus Group Information Security Policy” in March 2011 and works to protect information security.
In specific terms, the Company established an Information Security Promotion Committee as a subordinate
organization of the CSR Committee and implemented the action plans made by the Committee across Group companies
in Japan. In addition, overseas the Company has placed managers responsible for information security management at its
regional headquarters in Europe, the Americas and Asia while engaging in activities that are tailored to the circumstancesof each region.
The Company continues to conduct employee education and training sessions. As the risk of cyberattack has been
growing in recent years, the Company is focusing on education and awareness activities. While providing employees inJapan with the skills to address mail-based cyberattacks, Olympus also provides e-learning programs that cover casestudies of actual internal and external incidents and distributes mail magazines. The e-learning program was held twice infiscal 2015, and the attendance rate on both occasions was 99.9%.
Olympus Group Information Security Policy
The Olympus Group considers all the information we handle and our information systems (“information assets”) to be a critical management
resource based on the Corporate Conduct Charter as well as on our “Social IN” corporate philosophy, which provides the basis for all our
corporate activities. We will appropriately protect and manage our information assets while making proactive use of them, and will continuously
review and improve these activities.
1. Compliance with Laws and Regulations
We will comply with the laws, regulations, and contractual duties related to information security in all countries and regions
where we operate.
2. Management and Protection of Information
We will manage and protect the information assets appropriately in our business activities. We will also implement measures to prevent the
inappropriate use of these assets detrimental to Olympus and any acts that might decrease the value of the assets, such as falsification,
destruction, leakage and abuse.
3. Establishment of an Information Security Organization Structure
To ensure the appropriate management and protection of our information assets, we will establish an information security organization
structure and clarify the related responsibilities.
4. Establishment of Rules
We will establish the in-house rules to clarify the measures to be implemented to ensure information security. We will also revise these rules,
processes and controls continuously.
5. Education
We will increase information security awareness among all who handle the information assets and provide them with necessary educationand training on information security.
6. Emergency Responses
We will work to prevent information security-related incidents. If an information security incident occurs, we will make prompt responses to it
and implement measures to prevent the reoccurrence of similar problems.

50
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Product Responsibility

Quality Assurance
Basic Approach and Policy
Having formulated the Olympus Group Quality Policy based on its Corporate Philosophy and the Olympus Group
Corporate Conduct Charter, the Company has established a Code of Practice in order to demonstrate a more credible
commitment to quality. The Code of Practice consists of five elements—the customer viewpoint; improvements in thequality of operations; compliance with laws, social norms and in-house criteria; the establishment of a quality assurance
system; and the provision of safety and peace of mind—and the Olympus Group will listen to the voices of its customers
based on its “Social IN” corporate philosophy, which provides the basis for all corporate activities, and will constantly
pursue true value to continue to provide customers with high-quality products and services.
In April 2015, the Company formed the Quality & Regulatory Group, under which the quality assurance functions of theinternal business divisions are integrated, and advanced the building of a Companywide quality management system tosupport the realization of “One Olympus” through the matrix organizational structure-type business operations inaugurated
in that same month.
Under the medium-term management plan launched in April 2016, the Company will proceed with the strengthening of
the Companywide quality management system and the quality assurance system. This strengthening will be conducted in
anticipation of medical business expansion to realize the Corporate Vision of “contributing to society by making the lives ofpeople around the world healthier, safer, and more fulfilling.”
Olympus Group Quality Policy
The Olympus Group will listen to the voices of our customers based on our “Social IN” corporate philosophy, which provides the basis for all
corporate activities, and will constantly pursues true value to continue to provide customers with high-quality products and services.
1. We will take actions always from the viewpoint of our customers.
2. We will listen to the requests from our customers and look for their true needs and provide them with high-quality products that are
useful for society.
3. We will comply with the related laws, regulations, social norms, and the in-house criteria to ensure the safety and security of our
products and services for our customers.
4. W
 e will establish a quality management system to pursue higher quality in all our business processes and make continual
improvements, thereby winning more trust of our customers and increasing their satisfaction.
5. We will disclose information about the quality and safety of our products and services to our customers in a prompt and appropriate manner.

51
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Example of Quality Evaluation at the Development Stage
Olympus places particular importance on quality evaluation at the development stage, which is the starting point for
manufacturing. Conducted at the in-house Test and Evaluation Center (an organization that performs tests that havebeen quality system-audited by a third-party accreditation body), the measures that form part of quality evaluation at
this stage include calibration, EMC and safety testing, usability assessment, mechanical and environmental testing, andmaterials analysis.

■ Calibration
Calibration is a process used to maintain the accuracy of measuring instruments by ensuring that all components
are functioning correctly. The precision of measuring instruments can vary from day to day in response to changes inenvironmental conditions. As an entity certified under the Japan Calibration Service System (JCSS)*1, Olympus carefully
monitors errors caused by these changes and applies approved calibration methods to its measuring equipment.

■ Electromagnetic Compatibility (EMC) and Safety TestingElectromagnetic compatibility (EMC) testing is carried out to ensure that electrical and electronic equipment will not emit
electromagnetic noise that exceeds acceptable levels and could affect other equipment, and that it will not malfunction
when exposed to such emissions. The significance of EMC is being recognized more widely in recent years, andrelated regulations were enforced in various countries. We test our products in a 10 m wave anechoic chamber*2 and anelectromagnetic field immunity test chamber*3.

■ Product Safety Testing
For medical equipment, it is particularly important to conduct a range of product safety tests. Olympus conducts
safety tests, including a conformity assessment test (compliant with IEC 60601-1), and also employs its own third-party
certification, as needed.

■ Mechanical and Environmental Testing
Taking account of various conditions of usage, storage, and transportation, mechanical tests assess product strengthand life expectancy. Tests include a vibration test, drop test, and environmental tests, including operational humidity andtemperature, to confirm that products will maintain their performance and have sufficient strength and life.

■ Materials Analysis
Olympus not only analyzes and assesses parts and materials, but also uses various analytical systems to identify defects
and other issues through detailed analyses carried out after products have been brought to market. Findings from theseanalyses are used to eliminate the causes of problems and prevent recurrences.

*1 JCSS (Japan Calibration Service System)
Accreditation system of calibration laboratory*2 10 m wave anechoic chamber
Olympus’s 10 m wave anechoic chamber is one of the most advanced facilities of its type in the world and has been certified for use inelectromagnetic testing under the National Voluntary Laboratory Accreditation Program (NVLAP) of the United States.
*3 Electromagnetic field immunity test chamberThis chamber is used to confirm that electrical and electronic devices do not malfunction by exposing them to specific electromagnetic fields.
With the dissemination of wireless communication devices, action is underway to expand the test frequency range and upgrade testing levels. The
chamber at Olympus is capable of testing at frequency ranges of 80 MHz–6 GHz and a maximum test level of 30 V/m.

52
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Improvement of Sales/After-Sales Service Quality (Responses to Inquiries/Repairs)
The Company has systems in place to respond to customer inquiries and repairs in Japan and overseas for different
product fields and in different regions. As regards points of contact for inquiries, information relating to after-sales services
in general is provided via a Customer Support link on the Company website. Important information concerning safety or
consumer protection is made known via Important Announcements for Customers on the Company website.
The Company has developed a repair service network to meet user needs in each region and product category.
Outlines of customer response activities in each business field and of the efforts of the repair service network are set
out below.

Calls Received at Customer Support Centers (in Japan)
Imaging
Scientific Solutions
219,189

209,546

Medical Systems(Number of calls)

214,926

213,255
176,115

146,120

142,638

142,279

18,09918,70018,292

18,127

2012

2013

2014

2015 (Fiscal year)

125,016

128,083

15,353
2011

Percentage of Repairs Completed within the Allotted Time (in Japan)
Digital SLR cameras
Compact digital cameras

Audio
(%)

100

90

80

2011

2012

2013

2014

2015 (Fiscal year)

53
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Customer Response Structures in Each BusinessBusiness Field

Medical Systems

Outline of Activities(Japan)● Olympus has developed service systems designed to ensure the safety and reliability of healthcare environment.
• Establishment of Medical Customer Information Center, a call center dedicated to providing an information service for
medical specialists• Formation of a team for specialist services offering information on how to handle medical treatment devices,troubleshooting, etc.
• Immediate response system based on coordination and interaction between call centers and Olympus personnel stationed
in various regions(Overseas)● Olympus has established call centers in major cities.
• Call centers have also been set up in major cities in the USA, China, and Europe for localized and extensive services.
(Japan)● Customer satisfaction improvement activities at customer support centers• At customer support centers, assisted customer problem-solving covering all products from the Scientific Solutions field.
● Customer inquiries are fed back to all divisions to provide the best solutions to customers.
● Improving quality of responses through regular customer satisfaction surveys● Set up help desks to assist retailers● Technical assistance• Held “Olympus Microscope Classroom” seminars for customers to learn the proper and effective ways to use microscopes.
Held on-site classroom courses in response to customer requests

Scientific Solutions(USA)● TAC customer service• Assigned to local subsidiaries, TACs (Technical Assistance Specialists for microscopes) respond to customer inquiries via
telephone.
● Technical assistance• As sponsor, Olympus supports microscope training courses held at the world-renowned Woods Hole Marine Biological
Laboratory and Cold Spring Harbor Laboratory.
(Europe)● Olympus Academy activities• Manned by specialist staff, the Olympus Academy provides training in products and applications for subsidiaries and sales
agents in various countries. Product and application seminars are then held for customers by the subsidiaries and sales
agents that have undergone such training themselves.

Imaging(Japan)● Call center staffed seven days a week, including national holidays(Note: Excluding system maintenance days and year-end/New Year holidays)● Enhanced telephone and e-mail support per product category● Enhancing responses at call center• Enhancing the quality of telephone responses by various means, including improving the communication skills and productknowledge of call center staff members, through “mystery shopper” surveys undertaken by external organizations and bye-mailing customer questionnaires• From August 2015, lines into the call center changed to a nationwide call-handling service● Q&A and other information made public via the Company website● Supervision and management of global response results(Overseas)● Olympus has established call centers in major cities.
• Call centers have also been set up in major cities in the USA, China, and Europe to provide detailed responses tailored tothe areas they cover.

54
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Repair System per Business Field and Improvement Efforts
Business Field

Outline of Activities
Minimizing downtime during endoscope failures
To minimize endoscope downtime when an endoscope fails or is being repaired, the Shirakawa and Nagano medical
equipment service operation centers* centrally manage repairs and courtesy equipment.

Medical Systems

Endoscope repair service networks
Major repairs (Repairs necessitating overhaul)
Japan: U ndertaken at Shirakawa Medical Equipment Service Operation Center, Nagano Medical Equipment Service
Operation Center
Overseas: S ervice centers in the United States, Germany, France, Czech Republic, United Kingdom, China, India, etc.
Simple repairs to endoscopes and peripherals:
Available through a worldwide network of approx. 200 repair bases*The Shirakawa Medical Equipment Service Operation Center and the Nagano Medical Service Operation Center wererenamed the Domestic Repair Division in April 2016.
Providing repair services to the same high level at service bases across the world
The following services are provided at domestic and overseas manufacturing sites, sales subsidiaries and contracted agents• Microscopes: Back-to-base repairs, full servicing, function inspections, precision calibration, service contracts,
delivery installation• Industrial endoscopes: Back-to-base repairs, function inspections, service contracts• Non-destructive testing devices: Back-to-base repairs, full servicing, function inspections, precision calibration• X-ray analytical systems: Back-to-base repairs, function inspections

Scientific Solutions

Back-to-base repair services
Portable devices and those that may require extensive repairs are collected and repaired in an environment equivalent to the
production line. Devices that are collected for repair are normally returned within one month of receipt.
On-site repair services
For installation-type products, technical staff are dispatched to provide on-site services, including repairs, calibration andmaintenance inspections
Service contracts
Depending on the product, Olympus offers a number of maintenance service contracts.

Imaging

Greater repair service convenience with a variety of services and schemes
In Japan, the following services are provided by the Hachioji Repair Center, Olympus Plaza Tokyo, Olympus Plaza Osaka andthe service stations in Sapporo and Fukuoka:(1) P ickup service via website and telephone(2) On-line repair booking and estimating service
Internet-based repair service offering applications for servicing and information on repair fees and repair status(3) Flat-rate system for repairs(Applied to compact digital cameras and audio recorders)A single charge repair service that includes both technical services and parts(4) Quick Repair Service(Applied to mirrorless SLR camera bodies and interchangeable lenses)
Service for reducing repair time(5) C amera cleaning service(Applied to Olympus digital cameras and interchangeable lenses)
This is a reservation-based service for simplified inspection and exterior cleaning of Olympus cameras. In addition
to services provided at Olympus Plaza (in Tokyo and Osaka) and at the service stations in Sapporo and Fukuoka, acleaning service caravan has been organized to tour various cities in Japan.
For worldwide overseas repairs
Overseas, repair services tailored to the areas they cover are provided by repair bases in the USA, Portugal, Czech Republic,
Russia, Australia, China, South Korea, Hong Kong, Singapore, Thailand and Malaysia.
Improving the on-time rate for back-to-base repairs
One of our target indicators for customer satisfaction is the on-time rate for back-to-base repairs, the achievement rate ofwhich we verify on an annual basis.

55
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Personal Information Protection
Basic Approach and Policy
Olympus protects personal information concerning all its stakeholders, including its customers, using appropriate methods
and, in order for proper handling to be performed, clarifies its policies relating to information protection in the Olympus
Group Code of Conduct. In Japan, the Company has stipulated Personal Information Protection Policy and works toadhere to that policy.
The Olympus Group Personal Information Protection Policy (translation)
Note: This Personal Information Protection Policy is based on Japanese law, and thus is applicable only to Olympus Group Companies inJapan (excluding companies with their own personal information protection policy in place).
The Olympus Group (the “Olympus Group”) recognizes the importance of protecting personal information in the network society and believes
that it is the Olympus Group's social responsibility to properly handle and protect personal information. Accordingly, the Olympus Group shall
implement the following measures.
1. Implementation of an Internal System
The Olympus Group shall implement its internal system for the protection of personal information and educate all of its Directors, Auditorsand employees to enable proper handling of personal information. In addition, in order to ensure that initiatives to protect personal
information are being accurately implemented, the Olympus Group shall periodically hold audits.
2. Proper Handling of Information
The collection of personal information shall be limited to the appropriate scope and amount and may only occur after the person who
provides his or her personal information (the “Information Provider”) has been clearly informed of the intended purpose and use ofsuch information. In addition, the Olympus Group shall not handle any personal information outside the appropriate scope and shallaccommodate an Information Provider’s requests for disclosure, correction, deletion or discontinued of use of his or her personal
information within a reasonable period following such request.
Furthermore, the Olympus Group shall handle specific personal information only within the scope of purpose of use prescribed by law.
3. Limitation of Provision and Disclosure of Personal Information to Third Parties
Unless consent of the relevant Information Provider is obtained or otherwise required by law, the Olympus Group shall not disclose orotherwise provide personal information to third parties.
Furthermore, unless required by law, the Olympus Group shall not disclose or provide any specific personal information the Olympus
Group hold to any third party, regardless of whether the relevant Information Provider consents to the disclosure.
If the Olympus Group engages a third party on a matter that involves disclosure of personal information (maintained by the Olympus
Group) to the third party, the Olympus Group shall cause such third party to enter into a contract that obligates such party to properly
maintain and manage personal information.
Further, in such situations, the Olympus Group shall supervise and provide directions to such third party in connection to the protectionof personal information.
4. Ensuring of Accuracy and Safety
The Olympus Group shall make efforts to maintain accurate and up-to-date personal information, and take appropriate security measuresagainst risks such as unauthorized access to personal information, loss, destruction and falsification of personal information, andunauthorized disclosure of personal information.
5. Compliance with Laws and Regulations, and Continuous Improvements
The Olympus Group shall comply with laws, regulations and standards applicable to the protection of personal information and review andmake continuous improvements to the above-mentioned measures.

SystemIn Japan, the Company has in place supervisory personal information protection administrators and promotes personal
information protection activities across the Group in Japan while providing direction and supervision.

Personal Information Protection Measures
With regard to the creation of a personal information database in Japan, in addition to incorporating a system for obtaining
the prior approval of the administrator in each department, the Company utilizes a personal information management
register and works to improve the register’s accuracy. In addition, the Company inspects the register on a regular basis tobetter understand the actual situation with regard to the management of personal information. Requests for the disclosure,correction or deletion of personal information provided by customers are accepted at a predetermined point of contact.

56
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Social Contribution Activities

Basic Approach and Policy
Olympus Group Social Contribution Policy
In addition to its contribution through business, Olympus will contribute to society in various other ways through the useof its management resources, including its technology and human resources. Our Social Contribution Policy, which weadopted in March 2005, focuses on four areas of social contribution: medicine and health, culture and the arts, the global
environment, and science and technology. With both directors and employees taking the lead, we will continue to engage
in our unique brand of social contribution activities.
Olympus Group Social Contribution Policy
The Olympus Group will build up good relationships with society for the sustainable growth of both society and Olympus based on our "Social
IN" corporate philosophy, which provides the basis for all corporate activities. To this end, we will proactively listen to the opinions of our
stakeholders, including local residents and the international society, respect the local cultures and customs of the countries and regions where
we operate, and cooperate with local communities to contribute to their growth and improvement.
To attain this goal, we will provide society with value through our innovative products, our responsible and ethical behavior, as well as byconducting unique social contribution activities, and conduct unique social contribution activities including those adopted voluntarily by ourofficers and employees.
1. Priority Areas
We will conduct social contribution activities focusing on the areas of medicine and health, culture and the arts, the global environment, andscience and technology.
2. Priority Activities
In our priority areas, we will adopt the following three activities as priority activities.
1. Give support to the training and education of individuals who will be the next generation of leaders.
2. Enlighten citizens to resolve social issues in relation to our business domains.
3. Contribute to the solution of international social problems as a responsible global company.
3. Contributions to Local Communities
We will respect the local cultures and customs of the countries and regions where we operate in all our social contribution areas andactivities, regardless of whether they are the priority areas and activities or not, and will conduct charity activities, such as monetary andin-kind donations, to enhance harmony with local communities.
Also we will conduct charity activities to mitigate poverty and starvation, provide education opportunity for young people, and implement
emergency support activities from a humanitarian perspective during a large disaster or other emergency.
4. Promotion of Activities
We will raise awareness of our social contribution among all officers and employees, and will implement measures to encourage our social
contribution activities.
5. Information Disclosure
We will continually work to improve its social contribution activities in response to the requests of its stakeholders and society at large, andwill disclose information about our activities widely to the public.

Social Contribution Activities in Each of the Olympus Group Social Contribution Policy Priority Areas
Medicine and Health Area
■ Fostering Endoscopic Surgery Capabilities in Developing Countries
Olympus actively supports the development of medical professionals in emerging markets as a part of efforts to help lift thelevel of medical treatment and capabilities in developing countries. In fiscal 2015, the Company was contracted by the Japan
International Cooperation Agency (JICA) to promote the increased use of commercial technologies. Working to push forward thesocial and economic development of emerging nations, Olympus took steps to provide medical professionals in Thailand andIndonesia with training opportunities. With the cooperation of medical associations andinstitutions in Japan, Thailand, and Indonesia, physicians from Japan were dispatched as
instructors to both countries. Training was also conducted in each participating nation.
Guided by instructors well versed in their field, trainees received detailed
information on the latest endoscopic surgery techniques as well as Japan’sendoscopic surgical qualification system. Through activities such as these, Olympus
is helping to promote the widespread use of minimally invasive therapy in developing
Training to foster endoscopic surgeonscountries. This in turn is raising expectations toward an increase in medical standards.

57
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernance■ Onaka no Kenko Dot Com—A Website on Gastrointestinal Health
The Onaka no Kenko Dot Com website was first launched in February 2014. This
website provides information on stomach illnesses and cancer, examination anddetection methods using endoscopes, and various treatments. Drawing on theknowledge of physicians, the website helps to explain the role endoscopy and theirapplication in an easy-to-understand manner. In addition to details regarding thefunctions of the stomach and large intestine, the website provides information on
typical illnesses. As a part of this website, Olympus also conducts an annual survey
in an effort to measure and promote increased awareness toward endoscopes andendoscopic examinations.
In 2016, the number of survey respondents totaled 25,177 nationwide. The resultsof the survey were announced in July 14 to coincide with Endoscopy Day.

Society

Environment

Onaka no Kenko Dot Com website

WEB Onaka no Kenko Dot Com (Only in Japanese) http://www.onaka-kenko.com/

Culture and the Arts Area
■ International Cooperation Event—Global Festa 2015
Olympus participated in Global Festa JAPAN 2015, one of the nation’s largest
international cooperation events organized by various institutions including the
Ministry of Foreign Affairs of Japan. In addition to exhibiting the award winning works
from the 2010 “Picture This: We Can End Poverty” photograph contest, the Company
provided digital cameras and audio recorders as prizes for the photo exhibition
held by the Ministry of Foreign Affairs. Through these means, Olympus is helping toincrease awareness toward the Millennium Development Goals and such importantinternational community issues as the elimination of poverty and starvation.

■ Special Support for Oyako Day
Olympus is a special supporter of Oyako (Parents and Children) Day, a social action
initiative that began in 2003. Launched by the photographer, Bruce Osborn, thefourth Sunday of July each year is designated as Oyako Day.
Mr. Osborn held the Oyako Day Super Photo Session 2015 during which hetook photos of 100 families. In addition to providing photographic equipment andmaterials, Olympus also offers its support by helping in the running of a photo
contest through its Fotopus website, a community site that allows users to post theirphotographs.

The Company’s booth at Global Festa JAPAN2015

Oyako Day photo contest

Global Environment Area
■ Fourth Ocean Legacy Project in Okinawa
Olympus has actively engaged in efforts aimed at protecting the environment since
fiscal 2011. In particular, the Company has focused on such key themes as “Water
Circulation-Protection of forests, rivers and oceans.” As a part of these endeavors,
and with the cooperation of the non-profit organization, Churaumi Shinkokai,
Olympus took part in the planting of coral with the aim of protecting the exquisite
oceans of Okinawa. These activities occur during two days in June, which theCompany designates as its Environmental Awareness Month.
Volunteer divers planting coral58
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment■ Waterway Clean-up Activities in the Areas Surrounding Manufacturing Sites (Aizu, Shirakawa, Aomori, Nagano)Aizu Olympus Co., Ltd., Shirakawa Olympus Co., Ltd., and Aomori Olympus Co., Ltd.,
which serve as manufacturing sites for medical endoscopes, and Nagano Olympus
Co., Ltd., which serves as a manufacturing site for microscopes and industrial
endoscopes, conducted clean-up activities in each of their respective surrounding
areas. In addition to efforts aimed at improving the water circulation of rivers andwaterways, these clean-up activities which are undertaken by employees and theirfamilies form a part of the Group’s social contribution and health promotion activities.
River clean-up activities by employees ofNagano Olympus Co., Ltd.

Science and Technology Area
■ Wakuwaku Science Workshop
With the aim of conveying to children the joys of science, the Wakuwaku Project, avoluntary organization of Olympus employees, has conducted science workshops
for children at elementary and junior high schools near the Olympus Technology
Research Institute in Hachioji City, Tokyo since 2003.
This initiative has continued to expand as a company-driven event. In 2015, Aizu
Olympus Co., Ltd. held a Wakuwaku Science Workshop for nearby junior high school
students.
A Wakuwaku Science Workshop run by
Aizu Olympus Co., Ltd.

■ The 56th Natural Science Observation Contest
Olympus has provided its support to the National Science Observation Contest
for more than 50 years since the Contest’s inception in 1960. Held by Mainichi
Newspapers and the Society of Scientific Photography, and sponsored by Japan’s
Ministry of Education, Culture, Sports, Science and Technology, the National Science
Observation Contest, or Shizecon, strives to foster scientific thinking in the young
children that are responsible for the future. In specific terms, the Contest calls on
elementary and junior high school students to enter works in the categories of freeresearch and science. As a result of this initiative, several recipients of awards andContest participants have gone on to excel in the field of research. The 56th Contest in2015 attracted 13,091 entries from 760 elementary and junior high schools nationwide.

A compilation of
Natural Science
Observation
Contest winning
entries

Overseas Social Contribution Activities
Europe■ Providing Medical Care to the People without Health Insurance
Olympus Group companies in Europe have continued to offer their support to the
Migrants Medicine Project, an initiative run by an organization in Germany under the
auspices of MEDECINS DU MONDE (Doctors of the World), an international nongovernmental organization that provides humanitarian medical assistance to people
without health insurance. Over the Christmas period, donations totaling 13,000 euro
were made and medical care provided to the socially vulnerable as well as women andchildren in areas with large numbers of immigrants. Olympus Group companies havealso donated microscopes to clinics that specifically target immigrants. Through thesemeans, every effort has been made to facilitate speedy examinations especially in thegynecology field and to contribute to the medical care of a growing number of people.

59
OLYMPUS CSR REPORT 2016

Providing medical care through the Migrants
Medicine ProjectMessage fromthe President

FeatureProfileGovernanceSociety

Environment■ Addressing the Challenge of Blood Cancer through Donor Registration Drives
Coinciding with World Environment Day, Olympus Surgical Technologies Europe(Hamburg) donated a total of 10,000 euro to DKMS, the world’s largest bone marrow
center and an organization that maintains the long-term goal of eliminating bloodcancer together with more than 4.5 million bone marrow donors, on June 5.
In addition, more than 160 Olympus Group employees registered with DKMS
as bone marrow donors as a part of a large-scale stem cell and bone marrow
registration drive aimed at further facilitating the treatment of blood cancer.
Donating 10,000 euro to the Bone Marrow
Donor Center

The Americas■ Providing Learning Opportunities to Students from Low-income Families
Olympus Corporation of the Americas works in conjunction with an NPO that provides
an education program that specializes in science, technology, engineering, andmathematics to students from low-income families. As a part of this program roughlyeight days are set aside each year to provide students with learning opportunities. In
addition to raising student awareness toward the potential of a career in the medical
field, this initiative provides students with the opportunity to use medical equipment andcameras made by the Olympus Group as a part of a work-related learning experience.
Group employees also volunteer to pass on job interview skills and support
students in efforts to build a positive and productive future.

Students participating in an education program■ Employee Volunteer Day
Olympus Corporation of the Americas put in place the “Olympus Days of Caring”
initiative as a part of efforts to support the volunteer activities of its employees. In thismanner, the Group company continues to encourage its employees to participate involunteer activities that contribute to the community during work hours. On the relevantday, several hundred employees took part in volunteer events. Activities included
the provision of food to the hungry and poor and the cleaning and maintenance ofequipment. Employees also took time to read picture books to young children.
Employees participating in volunteer activities

Asia and Oceania■ Engaging in and Recognizing Activities That Contribute to the Promotion of Culture

Olympus Korea Co., Ltd. engages in a wide variety of activities that support thepromotion of culture. In addition to supporting young artists, the company opens
its hall to provide the hungry and poor with the opportunity to appreciate works ofart. The Group company also provides ongoing educational opportunities to young
children through the use of its cameras. Thanks to these efforts, Olympus Korea Co.,
Ltd. has been widely recognized as a company that contributes to the well-being andprosperity of society. The company received the Innovation Prize at the 16th Mecenat
Award event organized by the Korea Mecenat Association and newspaper publishers.

Concert held at a Company-owned hall

■ Engaging in and Recognizing Activities That Help Promote Gastrointestinal Health
Olympus (China) Co., Ltd. undertook various activities to promote the gastrointestinal
health of the people of China. In addition to conducting a survey that covered 12 major
cities that exhibit high rates of stomach and intestinal cancer and reporting on the results,
the company developed a game application for smartphones that estimates each users
gastrointestinal age. Other initiatives included lectures in six of China’s largest cities and a
marathon run over a course that was shaped like a stomach. Through these endeavors,
Olympus (China) Co., Ltd. was recognized by People’s Daily, China’s principal online media(only in Chinese), and received the fiscal 2015 Corporate Social Responsibility Award.

A lecture on gastrointestinal health60
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Environmental Management

Basic Approach and Policy
Olympus Group Environmental Policy
The Olympus Group Environmental Charter was adopted in August 1992 with the aim of defining our basic philosophy
on environmental issues and linking that philosophy to concrete action. In order to foster solutions to social problems
through our business operations, in May 2015 we added an item to the Environmental Charter on compatibility between
environmental protection and economic growth, and revised it into the Olympus Group Environmental Policy. At the sametime, we took steps to promote increased awareness toward the Policy through e-learning initiatives implemented during
the Group’s designated Environmental Month.
Placing great importance on reducing environmental loads throughout product life cycles, we are actively working to
improve the environmental performance of our products, facilities, and logistics processes.
Olympus Group Environmental Policy
Based on our “Social IN” corporate philosophy that provides the basis for all corporate activities, the Olympus Group respects people's
security and health and the natural mechanisms that realize this. We will contribute to the realization of a sustainable society and soundenvironment by working to make the environment and economy compatible in our business operations.
1. Participation by All
Each employee enriches their understanding of environmental activities and each one of us will participate in the environmental activities
conducted in consideration of the local features.
2. Promotion of Environmental Management
We will maintain the environmental management system and mechanism on a global scale so that we can continuously improve ourenvironmental activities.
3. Compliance with Laws, Regulations, and Social Norms
We will fully comply with the laws and regulations, agreements with our stakeholders, and our voluntary standards in respect to theenvironment.
4. Reduction of Environmental Impact
Toward the solution of environmental issues, prevention of pollution, sustainable resource use, climate change mitigation and adaptation,and protection of biodiversity, we will reduce environmental impact through our products, services and business activities.
5. Development of Technologies to Foster Harmony with the Environment
We will develop the technologies that contribute to environmental protection and will make use of the results in our manufacturing
processes, products and services.
6. Attributing Importance to Environmental Communication
We will proactively dispatch information about our environmental activities within and outside Olympus to deepen mutual understanding with
our stakeholders.

Promotion System
System to Promote Environmental Management
We have established a unit to promote environmental management within each of our business units and Group
companies, while the Olympus Group Environmental Management Division is tasked with fostering environmental
management across the Group. Progress on these activities is reviewed by the Board of Directors and the Executive
Management Committee, and measures are taken across the Group to achieve our predefined environmental targets.
Moreover, our major production facilities, as well as logistics and sales subsidiaries in Japan and overseas have ISO 14001
certification, and we are continuously improving our environmental management system through audits and by other means.
As a part of these activities, we established an IT system that provides the basis for global management of the data anddocuments related to our environmental management system. Operations commenced from fiscal 2014.

61
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Environmental Management Structure
Board of Directors andExecutive Management Committee
President
Director Responsible forEnvironmental Affairs...... Oversight for Environmental Activities

Environmental Management Supervisor
Olympus Group
Environmental Management Division(Olympus Group Environmental Secretariat)

Olympus Group
Environmental Committee...... Verification of Deliberation and Progress ofEnvironmental Activity Policies...... Promotion Secretariat for Environmental Activities

Business Group
Environmental Management Organizations

Facility Environmental Management
Organizations

Local Overseas Subsidiaries*Covered businesses are consolidated Group companies both in Japan and overseas.

List of ISO 14001 Certified Plants/Offices
Plant/Office
Nagano Facility (Tatsuno)*1

Date of Certification

Plant/OfficeFebruary, 1998

Date of Certification

Olympus Logitex Co., Ltd.

November, 2003

July, 1998

Olympus Medical Science Sales Co., Ltd.

October, 2004

Aizu Olympus Co., Ltd.

October, 1998

Olympus (GuangZhou) Industrial Co., Ltd.

October, 2004

Shirakawa Olympus Co., Ltd.

October, 1998

Olympus America Inc., National Service Center

December, 2005

Aomori Olympus Co., Ltd.

November, 1998

Olympus Scientific Solutions Americas Inc.

July, 2010

Olympus (Shenzhen) Industrial Ltd.

September, 1999

Olympus Scientific Solutions Technologies Inc.

July, 2010

Hinode Plant

Technology Research Facilities (Hachioji)

March, 2000

Olympus NDT Canada Inc.

July, 2010

Olympus Winter & Ibe GmbH

May, 2001

Olympus Vietnam Co., Ltd.

January, 2013

KeyMed (Medical & Industrial Equipment) Ltd.

March, 2002

Nagano Facility (Ina)*2

Olympus Technologies Singapore Pte Ltd

October, 2003

May, 2014*1 T
 he former Tatsuno Facility has been certified as the Nagano Facility sinceApril 2013.
*2 The former Ina Facility was certified in 1997. After consolidation with Tatsuno
Facility and change into repair function, it was recertified in 2014.

Systems and Mechanisms
Environmental Risk Management
Violations of laws and regulations related to chemical substances contained in products, effluent from production bases,
and soil and groundwater contamination are important environmental risks that affect Olympus Corporation’s management
such as by shutting down operations, generating recovery costs and reducing corporate value. Therefore, we maintainand revise rules and regulations for regulatory compliance, educate environmental promoters, monitor and improve local
investments, and work to reduce environmental risks.
Moreover, we are pursuing measures to combat climate change risk. These measures include keeping tabs on
regulatory information on energy conservation and CO2 reduction and addressing catastrophic floods attributable to thediversification of suppliers.

62
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment■ Control of Chemical Substances Used in Products
Products that Olympus designs and develops have been verified as not containing environment-related substances inaccordance with “Control Rules for Environment-related Substances Used in Products,” which is maintained based on thechemical substance regulations of each country. In addition, if these rules are amended, we conduct additional surveys.
WEB Olympus Group Control Rules for Chemical Substances Used in Products http://www.olympus-global.com/en/csr/involvement/management/chemical/index.jsp■ Management of Wastewater
To reduce the volume of wastewater, we are taking steps to reduce the volume of water usage and to recirculate water.
Further, in each of our businesses, we have installed a wastewater equipment manager and set voluntary standards stricter
than the laws and regulations in each region. By routinely measuring water quality, we rigorously maintain water quality.

■ Prevention of Soil and Groundwater Contamination
In the redevelopment of our facilities, we are voluntarily investigating soil and groundwater. We are also taking
countermeasures based on reports that have been presented to and consultations with government.

Compliance with Environmental Laws (FY2015)
Category

NumberDescription & Cause/Countermeasures

Violation of law

1

Description: Oil-based substances exceeded the reference value in sewage at the Hachioji Facility.
Cause: Oil removal equipment capacity inadequate due to increased personnel
Countermeasures: Increase capacity of oil removal equipment at the aforementioned facility, add the subject ofoil removal equipment maintenance to the pollution prevention regulations, and re-inspectequipment capacity at other facilities

Lawsuits

0–

Fines and penalty
charges

0–

Soil and Groundwater Survey
Survey Scope

Survey Results and Measures

Olympus Okaya Facility

Substances exceeding designated levels found in some soil in FY2014. Implementing measures in compliance withlaw (completion scheduled for August 2016)

Olympus Hatagaya Facility

Replaced with clean soil and completed countermeasures as groundwater monitoring in FY2014 confirmed levels
were below standard.

Olympus Shirakawa Facility

Substance exceeding designated levels were found in some soil in FY2015, we replaced with clean soil incompliance with the law (completed in FY2015).

Biodiversity Conservation
There is a concern that the loss of biodiversity will have a serious impact on the global environment and our lives.
The Olympus Group is working to conserve biodiversity, including the management of water use and wastewater andthe maintenance of green spaces, through cleanup and forest conservation activities in areas surrounding its facilities.

Green Procurement
Olympus published the “Olympus Group Green Procurement Standard” in 2001. The Green Procurement Standard, whichis also posted on our website, explains Olympus’ approach to its environmental activities to all suppliers.
In addition, in our corporate survey that we conduct once a year targeting major suppliers in Japan and abroad withwhom we have ongoing business, we verify whether the suppliers have acquired ISO 14001 certification, reduced CO2 andwaste, and what measures they have taken against chemical substances. In this way, we are working to raise the level ofour environmental activities with suppliers.
WEB Olympus Group Green Procurement Standard http://www.olympus-global.com/en/csr/involvement/management/procurement/

63
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Environmental Education and Awareness Activities
To promote environmental activities with the participation of all employees based on the “Olympus Group Environmental
Policy,” Olympus works to raise environmental awareness through activities implemented during the Olympus
Environmental Awareness Month, such as the “Global Environmental Photo Contest.”
Moreover, we provide environmental education appropriate to each department, including education on compliancewith environmental laws and regulations and on the ISO 14001 internal audit.
WEB Global Environmental Photo Contest http://www.olympus-global.com/en/csr/involvement/management/education/2016.jsp

Major Environmental Education Programs (Japan/FY2015)
TargetPurpose/Description

Number of Participants

All employees

Implementing education on the “Olympus Group Environmental Policy”(e-learning)

12,010Conducted for all employees during
Environmental Awareness Month (June)

Environmental auditors

Training for ISO 14001 internal auditors(to understand ISO 14001 revisions, audit practice, etc.)

80

Environmental promoters at
facilities

Implementing education on revisions of environmental laws for facilities,
and response and operation policies

20

Contact person for chemical
substance management at
facilities/Chemical manager,
chemical user

Understanding business precautions in the management of chemical
substances

420

Major Environmental Activity Results in Fiscal 2015
Primary Policy

Promotion ofenvironmental
management

Environmental
initiative
throughout
product life
cyclesTargetMeasuresFiscal 2015
Achievements and Results(Quantitative and Qualitative)

Next Fiscal Year Plans• Development ofenvironmental
regulations andinformation
infrastructure• Respond to ISO 14001
revisions• Established global environmental
management rules• Firmly established the operationof an environmental information
management infrastructure• Conducted Gap Analysis between
the revised ISO 14001 andcurrent situation, and educatedenvironmental auditors (80)Continue to enhancethe environmental
governance system ona global level by global
cooperation and improving
the environmental
management system

Enhancement ofenvironmental
governancesystemEnhance theenvironmental
governance systemon a global level

Compliance withenvironmental
laws andregulations

Continue to improve
the process tocomply withenvironmental laws

• Improve relevant
management rules• Educate relevant parties
on environmental laws
and regulations• Maintained management rules for
products and facilities• Provided education on chemical
substance management at
facilities (420 participants in Japan)

Continue to improve theenvironmental regulatorycompliance process for
products and facilities

Product-related
initiatives

Create Olympus
Eco-Products (noquantitative target)

Implement
environmentallyconscious designs
tailored to each products’
characteristics

Created new Eco-Products in all
business units (31 new, bringing
total to 556)

Continue to create
products that areenvironmentally conscious
and tailored to businesscharacteristics• Conduct ongoing
manufacturing
improvement activities• Carry out
environmentallyconscious measuresat time of new building
construction• Energy consumption rate:
Improved 7%• Implemented environmentallyconscious measures for newbuilding construction at threeTohoku facilities (Aizu, Aomori, andShirakawa)

Carry out activities toimprove the energy
consumption rate inaccordance to local
characteristics suchas manufacturing
improvement, energy
conservation, introductionof natural energy, etc.

• Conduct environmental
contribution activities at
global bases• Conduct activities
under the theme of“Ocean Legacy Project”• Conducted river clean-ups andlocal greening activities at global
bases• Conducted ongoing coral planting
and nature school (3 sessions)Continue social
contribution activities

Facilities-related
initiatives

Energy consumption
rate: 7.73% or more
reduction in fiscal
2020 (relative tofiscal 2012)

Environmental
contribution
activities

Environmental
contribution
activities under thetheme of “Water
Circulation—
Protection ofForests, Rivers, andOceans”

64
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Environmental Performance

Material Balance
Business
Activities

Resource and Energy Input
Energy (total)

2,011 TJ (2%)• Electric power

177.77 million kWh (2%)• City gas

3.123 million m (▲6%)
3

• LPG

1,064 t (26%)• LNG

842 t (▲5%)• Heavy fuel oil

325 kl (11%)• Kerosene

53 kl (43%)• Diesel fuel18 kl (▲81%)• Gasoline

0 kl (0%)• Hot water• District heat

Development
andManufacturing

Greenhouse Gases (Total)

110,635 t-CO2e (1%)

• CO2 generated from energy

110,624 t-CO2e (1%)

• CO2 not generated from energy

11 t-CO2e (▲75%)

Substances Emitted
Research &Development• NOx

61 t (▲1.0%)• SOx

0.4 t (▲12.5%)

1 TJ (0%)
2.08 million kWh (6%)

Chemical Substances(PRTR Substances Handled)

Chemical Substances
19 t (0%)(PRTR substances emitted and transferred)

38 t (0%)
Production

Water (total)

1.24 million m (▲5%)• Piped water

0.53 million m 3 (2%)• Ground water

0.71 million m 3 (▲9%)

3• Metals

Steel, aluminum, brass• Plastics

Optical plastics, ABS, PC,polyethylene, polypropylene• Water discharged(public waters)

0.59 million m 3 (▲9%)• Water discharged(sewage)0.65 million m 3 (0%)
2 t (0%)Discharge

Office Supplies
187 t (10%)• Copy paper

Discharge to Water Systems

BOD

Raw Materials and Sub-Materials

Transportation Fuel• Transportation

Discharge of Environmental Load Substances

Gasoline, diesel fuel, etc.

• Waste discharged

4,240 t (0.1%)• Amount recycled

3,768 t (▲1.2%)• Landfill

203 t (▲3.3%)

Sales and
Logistics

CO2 Emissions during
Transportation (total)

Logistics• Japan

45,433 t-CO2 (▲2%)
2,910 t-CO2 (1%)
35,611 t-CO2 (▲3%)• International• Overseas regions

6,912 t-CO2 (1%)

Sales
Use of Packaging Materials (total)

777 t (▲3%)• Cardboard

447 t (▲5%)• Paper

167 t (1%)• Plastic

113 t (▲2%)• MetalProduct Shipments
Major Products (total)

2,465 t (2%)• Endoscopes

1,185 t (0%)

3 t (7%)• Microscopes

674 t (24%)• Glass

0 t (▲0%)• Digital cameras

528 t (▲11%)• Other

47 t (▲7%)• Recorders

79 t (▲22%)

Production facilities in Japan only

Repair and Service

Global production facilities

Percentage change from previous year in brackets

65
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Energy/Atmospheric Release
Internal (Scope 1, 2) Results
FY2015 Results

Main Measures

FY2016 Targets● Ongoing implementation of manufacturing

7% improvement

improvement activities

Basic unit of energy:(compared to FY2012)● Measures that show consideration for theenvironment when having new buildings
constructed● Ongoing implementation of energy-saving
activities on a daily basis, such as switching off
lights, adjusting air-conditioning temperatures

4.0% decrease

GHG Emissions:(compared to FY2012)

Basic unit of energy: improve by(compared to FY2012)

4% or more

The Olympus Group set a target of improving its basic unit of energy by 7.73% or more, compared with fiscal 2012, by
fiscal 2020 and among its energy-reduction activities is engaged in reducing its CO2 emissions. In fiscal 2015, the Group
implemented ongoing manufacturing improvement activities, including space saving and lead-time reduction, measuresthat showed consideration for the environment in the construction of a new building for the Shirakawa Plant, and renewed
aging air-conditioning and hot-water supply equipment.

External (Scope 3 [Logistics]) Results
FY2015 Results
GHG Emissions:

Main Measures

8.6% reduction● Enhanced loading efficiency by improving packaging size and strength● Reduced transportation weights by improving packing and packaging methods(compared to FY2012)● Shortened lead times and transportation distances by improving logistics routes

The Olympus Group is engaged in reducing logistics-related CO2 emissions at each of its business sites. In addition toadvancing a modal shift from aircraft to ships for international transportation on an ongoing basis, in fiscal 2015 the Groupswitched the transportation of products directly to sales regions from Hong Kong rather than sending products in theconventional manner by way of Japan.

Breakdown of Internal Energy Consumption

Internal Energy Consumption
(TJ)
3,000

2,264

2,169

2,075

1,974

FY2012FY2013

FY2014FY2015City gas

151

154

160

150

141

LPG

37

34

38

43

54

LNG

40

51

55

48

46

Heavy fuel oil

50

15

12

11

13

Kerosene

1

2

1

1

2

Diesel fuel

160

158

86

4

1

Gasoline

0

0

0

0

0

439

414

352

257

257

Electricity

1,817

1,746

1,715

1,709

1,745

Indirect Hot water

1

1

1

1

2

7

8

7

7

7

2,264

2,169

2,075

1,974

2,011

2,011

2,000

Direct1,000

Subtotal

0

2011

2012

2013

2014

2015

(Fiscal year)

District heat

Scope: Domestic and overseas business enterprises of the Olympus Group.
However, small businesses are excluded. Conversion coefficient based on
Enforcement Regulation for the Act on the Rational Use of Energy(TJ)

FY2011

Total

66
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

GHG Emissions/Basic Unit (Scope 1, 2)

GHG Emissions (Scope 3 [Logistics])

Scope 1(t-CO2e)150,000

Domestic logistics(t-CO2)60,000

Scope 2

Basic unit of consolidated sales (t-CO2e/¥100 million)
30

116,716

6,802 49,718

110,635

109,753

7,332 42,101

20.6
100,000

18.3
101,475

16.4

90,97120

40,00010

20,0002015 (Fiscal year) 0

0

14.4

96,867

13.8

96,1700

2011

24,3082012

19,8492013

13,583
2014

13,563

46,37945,433

6,871

6,912

36,62535,611

6,052

45,331

97,07250,00026,266

Logistics in overseas regions

54,466

127,741
115,279

International logistics

39,64833,092

2,333
2011

2,738
2012

2,957
2013

2,883
2014

2,910
2015 (Fiscal year)*Scope: Domestic and overseas business enterprises of the Olympus Group. However, small businesses are excluded.
*Reporting based on the following GHG Protocol scopes.
Scope 1: Greenhouse gas emission from direct use of fossil fuels
Scope 2: Greenhouse gas emission from secondary use, such as electric power purchase

Sources for CO2 Conversion Coefficients● Electricity

Japan: Coefficients published annually by the national government under the Act on Promotion of Global Warming Countermeasures and coefficients after adjustment foreach power utility per fiscal year. FY2014 conversion coefficient used for FY2015.
Overseas: Coefficients published by the IEA that are conversion coefficients by nation per fiscal year. FY2013 conversion coefficient used from FY2014 onward.

● Fuels

Japan/overseas: Conversion coefficients based on Act on Promotion of Global Warming Countermeasures employed.
Coefficients for Converting GHG to CO 2e
From FY2015 onward: 100-year GWP in IPCC Fourth Report used.
Up to and including FY2014: 100-year GWP in IPCC Second Report used.
Basic Unit of Consolidated Sales
Companywide CO2 emission (t-CO2e) / Consolidated sales (100 million yen)
Note: The scope of disclosure was expanded, and previous data have been included in the review, resulting in changes in numerical figures dating back to previous disclosure data.

GHG Emissions for the Entire Supply Chain
Category

Emissions(in thousands tCO2)
FY2014FY2015

Scope 114

14

Scope 2

96

97

Scope 3Calculation Method (Assumptions)

1. Purchased goods and services

71

71

Calculated by multiplying raw materials and parts of leading products by basic unit

2. Capital goods

148

166

Calculated by multiplying facility investment value by basic unit

3. Fuel- and energy-related activities(not included in Scope 1, Scope 2)

10

10Calculated by multiplying electric power and fuel purchased by basic unit

4. Upstream transportation anddistribution

65

49.619Calculated by multiplying transport ton/kg of leading products by basic unit
(including delivery logistics)

5. Waste generated in operations

3

5

Calculated by multiplying worksite waste output by basic unit

6. Business travel

18

19

Calculated by multiplying business travel expenses by basic unit

7. Employees’ commuting

13

13Standard commute model defined by region and calculated by multiplying thenumber of employees in region by basic unit

8. Leased assets (upstream)

7

7

Calculated by multiplying gasoline consumption for corporate & leased vehicles bybasic unit

9. Downstream transportation anddistribution−−

Classified as transport from dealers and sales companies to the customer but
excluded due to small impact scale

10. Processing of sold products−−

Excluded due to small impact scale and difficulty in tabulation in this category

11. Use of sold products

57

58

Calculated by multiplying electric power consumption, etc., for lifetime of soldproduct by basic unit

12. End-of-life treatment of soldproducts

3

3

Calculated by multiplying product disposal weight by basic unit for waste material

13. Leased assets (downstream)−−Calculation including use of sold products, although some products are leased

14. Franchises−−

Not calculated due to absence from Olympus’s business range

15. Investments

1010

Calculated by multiplying Scope 1 & Scope 2 emissions at investment targets byinvestment ratio

Scope 1: Direct emissions from facilities owned or controlled by the company (e.g., emission from use of town gas or heavy oil)
Scope 2: Emission from generation of energy consumed at facilities owned and controlled by the company
Scope 3: Other indirect emissions excluding Scope 1 and Scope 267
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSocietyNOx Emissions

SOx Emissions

(t)

(t)

150

Environment

2.0

130

126

1.6
1.5

90

100

62

1.0

61

50

0.5

0

2011

2012

2013

2015

2014

0.0

(Fiscal year)

2011

0.5

0.4

0.5

2012

2013

0.4

2015

2014

(Fiscal year)

Water/Waste
Water Use/Wastewater Results
FY2015 Results
Water use:

Main Measures

4.6% decrease● Improvements in water use processes● Implementation of anti-leak measures during equipment inspections(compared to FY2014)

The Olympus Group uses water mainly for cleaning components and other purposes during production processes as wellas in its dining halls. The Group sets targets individually at those business sites that use large amounts of water andencourages the reduction in the amount of water used and wastewater. In fiscal 2015, the cooling tower at the Olympus
business site in Nagano was replaced and the amount of water used reduced.
Having also set standards that are stricter than the laws and regulations in each region, the Olympus Grouppainstakingly controls the quality of water discharge at its business sites.
Water Use

Wastewater(10 thousand m 3)

Groundwater(10 thousand m 3)

Piped water

200

163
150

Sewage systems

58

163
136
57

128
52

130

150

124
52

100

62

130

128

100

124

64

65

65

64

65

59

101
79

2011

136
68

53

105
50

0

Public water areas

200

2012

76

2013

78

2014

50

71

0

2015 (Fiscal year)*Scope: Manufacturing and development sites in Japan and overseas (except sites inNorth America)

68

2011

2012

2013

2014

2015

(Fiscal year)*Scope: Manufacturing and development sites in Japan and overseas (except sites inNorth America)

68
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Waste Results
FY2015 Results
Waste discharged:

Main Measures

0.1% increase● Products designed to reduce waste material● Reduction of process defects by improvements in manufacturing processes, improvement(compared to FY2014)

in recycling rate by thorough separation and other measures

The Olympus Group is advancing methods to reduce the amounts of waste produced and disposed of at landfills at eachof its business sites. For example, at Olympus (Shenzen) Industrial Ltd., the waste generated by the molding process isreused as plastic material. Also, at the Nagano facility, use is made of solution concentration equipment that reduces theamount of waste acids and alkalis.
Waste discharged/Landfill and Recycle Rate(t)
Waste discharged
6,000

Recycling rate (%)
100

Landfill

5,020
4,414
4,000

4,257

89

4,234

91

90

4,240
89

90

86
2,000

80

197
0

2011

208
2012

210

210

2013

2014

203
2015 (Fiscal year) 0*Scope: Manufacturing & development sites in Japan and overseas (except sites inNorth America)*Olympus processes wastes from its sites within their respective home countries anddoes not ship wastes internationally, regardless of hazard designation under the
Basel Convention.

Chemical Substance Safety and Control
FY2015 Results

Main Measures● Reduced usage by improvements in manufacturing processes

Emissions and Movements of PRTR Class 1-Designated Chemical
Substances: No change from fiscal 2014

● Substitution of PRTR-designated chemicals with other substances

through material developments

Setting targets individually at each of its business sites, the Olympus Group is making progress in the reduction of
PRTR-designated chemical substances. At Aizu Olympus, improvements made to the light guides that form part of medical
endoscopes has reduced the amount of lead used.
Emissions and Movements of PRTR Class 1-DesignatedChemical Substances
(t)
30.0

21.2

22.4

20.9

20.0

19.3

19.3

2014

2015 (Fiscal year)

10.0

0.0

2011

2012

2013

*Scope: Manufacturing and development sites in Japan69
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Environmentally Conscious Products
Product Life Cycle Assessments
The Olympus Group works to develop products and production technologies that show consideration for safety and for theenvironment. Having in 2003 established its Eco-Products Administration Rules, a voluntary standard relating to theenvironmental considerations of its products, the Company continues to certify its products as Olympus Eco-Products.
In addition, a life cycle assessment (LCA) is performed at each stage of a product’s life cycle to assess its impact on theenvironment at the product development stage and from procurement through manufacture, distribution, use and final
disposal. Clarifying the environmentally conscious aspects that differ for each product, we have set them as items for theenvironmental consideration standard.

Examples of Environmentally Conscious Products
The Olympus Group works to show consideration for the environment through the products in each of its business fields.

Medical Business
OLYMPUS CH-S400-XZ-EB 4K Camera Head (Part of Surgical Endoscopy System)
Main Product Features
1. Ultra-high-definition 4K images help improve visibility during surgery.
2. Excellent color reproduction facilitates the identification of fine tissue.
Environmentally Conscious Aspects
Due to its having been designed to be more compact than other products on themarket, the camera head reduces the volume when packed by 42% comparedwith the predecessor.

Scientific Solutions Business
BX53M/BXFM System Microscope
Main Product Features
1. Designed to be even easier to use, with the addition of units that facilitate
aperture adjustment and switching between different observation methods
2. Suitable for a wide range of applications, with a high degree of expandability
made possible by an extensive range of units
Environmentally Conscious Aspects
Having adopted LEDs for the microscope’s light sources, plans were made toboth increase the service life of the light sources and reduce power consumption.

70
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

Camera and Audio Business
OLYMPUS PEN-F Mirrorless Single-Lens Camera
Main Product Features
1. A design with timeless beauty and excellent operability
2. New 20 Megapixel Live MOS sensor and 5-axis VCM image stabilization for
ultimate image quality

Voice-Trek DM-720 IC Recorder
Main Product Features
1. TRESMIC three-microphone system realizes high-quality sound recording in all
situations.
2. “Voice playback” and “transcribe” modes help ensure that the creation of
meeting minutes or documentation is performed efficiently.

Environmentally Conscious Aspects (shared by both products)● In accordance with the “Act on Promotion of Recycling of Small Waste Electrical and Electronic Equipment”*1 and theguidelines formulated by the Camera & Imaging Products Association (CIPA)*2, battery recycling is encouraged by having
not incorporated the batteries into the device bodies and by having adopted a rechargeable battery and a retractablebattery compartment cover to facilitate battery removal.
● Reduced power consumption when in use and when on standby*1 For more details please visit:
WEB (Only in Japanese) http://www.env.go.jp/recycle/recycling/raremetals/law.html*2 For more details please visit:
WEB (Only in Japanese) http://www.cipa.jp/env/documents/j/assessmentguide_20160419.pdf

Products That Contribute to Solving Environmental Issues
Utilized even at the forefront of automobile and aircraft development with the aim of improving the efficient use of energy
and the recycling facilities, Olympus products contribute to solving environmental issues.

DELTA Element X-Ray Fluorescence Analyzer
Assisting in hazardous substance analysis and resource recycling
Main Product Features
1. Identifies the elements in the target product and measures their amounts
2. Simple to operate with excellent portability
3. Analyzes hazardous substances contained in products
4. Easily sorts recyclable material in scrap material analyses

71
OLYMPUS CSR REPORT 2016

Message fromthe President

FeatureProfileGovernanceSociety

Environment

IPLEX RX/RT Industrial Videoscope
Contributing to the realization of a society that emits only small amounts of CO2
Main Product Features
1. Used in the inspection and diagnosis of the internal parts of machinery
2. Reproduces even the slightest defect in a sharp, clear image
3. Used for inspections of wind power generation facilities and of automobiles
competing on low fuel consumption as well as of aircraft engines

Environmental Accounting
Environmental Costs(Millions of yen)Grouping

FY2015Investment

Cost

Investment

Cost

Investment

78

465

71

1,302

278

772

Prevention of Public Nuisance Cost

29

235

36

1,100

30

564

Global Environmental Conservation Cost

49

48

34

31

247

35

Resource Circulation Cost

Costs inside Business Area
Content

FY2014FY2013

Cost

0

181

0

171

1

174

In Upstream Costs

1

77

1

97

1

86

In Downstream Costs

10

6

0

8

0

8

Environmental Management Activity Costs

44

417

0

386

0

363

R&D Costs

0

193

0

95

0

96

Costs of Social Activities

0

5

0

3

0

6

Costs for Damaged Environment

0

0

0

0

0

0

134

1,162

72

1,891

279

1,332

Total

Environmental Effects
Quantitative Effects ofEnvironment Preservation

Effects inside
Business Area

FY2013

FY2014FY2015CO2 emissions (t-CO2)

53,31350,80951,548Waste Discharged (t)

2,096

2,103

2,010

Water Usage (10000m )

86

90

82

Chemical Substances
Transferred/Discharged (t)

21

19

19

3

(Millions of yen)

Change from Previous Fiscal Year

Economic Benefits of Environmental Protection
Revenue Benefits

Revenues from Sales of Valuable Recycled Substances
Energy Costs

Cost Savings

2
▲ 174

Costs of Water Usage▲0

Disposal Contracting Costs▲4

Target period: April 1, 2013–March 31, 2016
Scope: Head office functions, manufacturing companies and distribution companies in Japan
Notes:
1) Tabulation based on “Environmental Accounting Guideline 2005.”
2) Cost and depreciation that cannot be separated clearly in environmental management are not divided proportionately.
Full amount has been excluded from the calculations.
3) Close scrutiny of data will show items with differing figures for past results.

72
OLYMPUS CSR REPORT 2016

GRI Guideline Reference Chart
The information contained within this report conforms to Global Reporting Initiative (GRI) Sustainability Reporting Guidelines 4.0.
Also shown are references to the GC Principles applied by Olympus as a signatory of the United Nations Global Compact,
and IS0 26000.				

General Standard Disclosures
Description * Core Indicator

Item

GC
Page Principles

ISO 26000

Strategy and Analysis
G4-1*

a. Provide a statement from the most senior decision-maker of the organization(such as CEO, chair, or equivalent senior position) about the relevanceof sustainability to the organization and the organization’s strategy foraddressing sustainability.

Message from the President

3

G4-2

a. Provide a description of key impacts, risks, and opportunities.

Message from the President
FeatureRisk Management System

3530

a. Report the name of the organization.

Company Outline

15

G4-4*

a. Report the primary brands, products, and services.

Business Overview andMarkets Served

17

G4-5*

a. Report the location of the organization’s headquarters.

Company Outline

15

G4-6*

a. Report the number of countries where the organization operates, and namesof countries where either the organization has significant operations or thatare specifically relevant to the sustainability topics covered in the report.

Business Areas

16

4.7
6.2
7.4.2

Organizational Profile
G4-3*

G4-7*

a. Report the nature of ownership and legal form.

Company Outline

15

G4-8*

a. Report the markets served (including geographic breakdown, sectors
served, and types of customers and beneficiaries).

Business Overview andMarkets Served

17

G4-9*

a. Report the scale of the organization.
· Total number of employees· Total number of operations· Net sales (for private sector organizations) or net revenues (for public sector
organizations)· Total capitalization broken down in terms of debt and equity (for private sector
organizations)· Quantity of products or services provided

Company Outline
Financial Highlights

15
15

G4-10*

a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and gender.
c. Report the total workforce by employees and supervised workers and by gender.
d. Report the total workforce by region and gender.
e. Report whether a substantial portion of the organization’s work is performed
by workers who are legally recognized as self-employed, or by individuals
other than employees or supervised workers, including employees andsupervised employees of contractors.
f. Report any significant variations in employment numbers (such as seasonalvariations in employment in the tourism or agricultural industries).

Employment-Related Data

35

6

G4-11*

a. Report the percentage of total employees covered by collective bargaining
agreements.

Labor-Management
Consultation

35

3

G4-12*

a. Describe the organization’s supply chain.

–

G4-13*

a. Report any significant changes during the reporting period regarding theorganization’s size, structure, ownership, or its supply chain.
· Changes in the location of, or changes in, operations, including facility
openings, closings, and expansions· Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector organizations)· Changes in the location of suppliers, the structure of the supply chain, or in
relationships with suppliers, including selection and termination

Organizations Covered by
the Report1

Commitments to External Initiatives
G4-14*

a. Report whether and how the precautionary approach or principle isaddressed by the organization.

CSR Promotion Structure
Risk Management System
Commitment to External
Initiatives

30
30
33

G4-15*

a. List externally developed economic, environmental and social charters, principles,or other initiatives to which the organization subscribes or which it endorses.

Commitment to External
Initiatives

33

G4-16*

a. List memberships of associations (such as industry associations) and national
or international advocacy organizations in which the organization:· Holds a position on the governance body
· Participates in projects or committees· Provides substantive funding beyond routine membership dues
· Views membership as strategic—73
OLYMPUS CSR REPORT 2016

6.3.106.4.1-6.4.2
6.4.3
6.4.4
6.4.5
6.8.5
7.8
5.2

Description * Core Indicator

Item

GC
Page Principles

ISO 26000

Identified Material Aspects and Boundaries
G4-17*

a. List all entities included in the organization’s consolidated financial statements
or equivalent documents.
b. Report whether any entity included in the organization’s consolidated financial
statements or equivalent documents is not covered by the report.

Organizations Covered by
the Report

G4-18*

a. Explain the process for defining the report content and the Aspect
Boundaries.
b. Explain how the organization has implemented the Reporting Principles for
Defining Report Content.

—

G4-19*

a. List all the material Aspects identified in the process for defining reportcontent.

—

G4-20*

a. For each material Aspect, report the Aspect Boundary within the organization.
· Whether the Aspect is material within the organization· If the Aspect is not material for all entities within the organization (as describedin G4-17), select one of the following two approaches and report either:- The list of entities or groups of entities included in G4-17 for which the Aspect
is not material or- The list of entities or groups of entities included in G4-17 for which the Aspects
is material· Specific limitation regarding the Aspect Boundary within the organization—

G4-21*

a. For each material Aspect, report the Aspect Boundary outside theorganization.
· Whether the Aspect is material outside of the organization· If the Aspect is material outside of the organization, identify the entities, groupsof entities or elements for which the Aspect is material. In addition, describe thegeographical location where the Aspect is material for the entities identified.
· Specific limitation regarding the Aspect Boundary outside the organization—

G4-22*

a. Report the effect of any restatements of information provided in previous
reports, and the reasons for such restatements.

—

G4-23*

a. Report significant changes from previous reporting periods in the Scope andAspect Boundaries.

Organizations Covered by
the Report

1

20

1

5.2
7.3.2
7.3.3
7.3.4

Stakeholder Engagement
G4-24*

a. Provide a list of stakeholder groups engaged by the organization.

Examples ofCommunication with
Stakeholders

G4-25*

a. Report the basis for identification and selection of stakeholders with whom toengage.

—G4-26*

a. Report the organization’s approach to stakeholder engagement, including
frequency of engagement by type and by stakeholder group, and an indicationof whether any of the engagement was undertaken specifically as part of thereport preparation process.

Examples ofCommunication with
Stakeholders

20

G4-27*

a. Report key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key topics
and concerns, including through its reporting. Report the stakeholder groups
that raised each of the key topics and concerns.

Examples ofCommunication with
Stakeholders

20

5.3

Report Profile
G4-28*

a. Reporting period (such as fiscal or calendar year) for information provided.

Period Covered by
the Report1

G4-29*

a. Date of most recent previous report (if any).

Publication Date2

G4-30*

a. Reporting cycle (such as annual, biennial).

Publication Date2

G4-31*

a. Provide the contact point for questions regarding the report or its contents.

Back cover

Back
cover

GRI Content Index
G4-32*

a. Report the ‘in accordance’ option the organization has chosen.
b. Report the GRI Content Index for the chosen option (see tables below).
c. Report the reference to the External Assurance Report, if the report has beenexternally assured. (GRI recommends the use of external assurance but it is
not a requirement to be ‘in accordance’ with the Guidelines.)

This chart

Assurance

G4-33*

a. Report the organization’s policy and current practice with regard to seeking
external assurance for the report.
b. If not included in the assurance report accompanying the sustainability report,
report the scope and basis of any external assurance provided.
c. Report the relationship between the organization and the assurance
providers.
d. Report whether the highest governance body or senior executives are
involved in seeking assurance for the organization’s sustainability report.

Assurance Statement
related to GHG Emissions

74
OLYMPUS CSR REPORT 2016

81

7.5.3
7.6.2

Description * Core Indicator

Item

GC
Page Principles

ISO 26000

Governance
Governance Structure and Composition
G4-34*

a. Report the governance structure of the organization, including committeesof the highest governance body. Identify any committees responsible fordecision-making on economic, environmental and social impacts.

Corporate Governance
Structure(Annual Report)

21

G4-35

a. Report the process for delegating authority for economic, environmental andsocial topics from the highest governance body to senior executives and other
employees.

CSR Promotion Structure

30

G4-36

a. Report whether the organization has appointed an executive-level position or
positions with responsibility for economic, environmental and social topics,
and whether post holders report directly to the highest governance body.

CSR Promotion Structure

30

G4-37

a. Report processes for consultation between stakeholders and the highest
governance body on economic, environmental and social topics. If
consultation is delegated, describe to whom and any feedback processes tothe highest governance body.

—

G4-38

a. Report the composition of the highest governance body and its committees.
· Executive or non-executive· Independence· Tenure on the governance body
· Number of each individual's other significant positions and commitments, andthe nature of the commitments· Gender· Membership of under-represented social groups· Competences relating to economic, environmental and social impacts· Stakeholder representation

Corporate Governance
Structure(Annual Report)

G4-39

a. Report whether the Chair of the highest governance body is also an executive
officer (and, if so, his or her function within the organization’s management
and the reasons for this arrangement).

Corporate Governance
Structure(Annual Report)

G4-40

a. Report the nomination and selection processes for the highest governancebody and its committees, and the criteria used for nominating and selecting
highest governance body members, including:· Whether and how diversity is considered· Whether and how independence is considered· Whether and how expertise and experience relating to economic,
environmental and social topics are considered· Whether and how stakeholders (including shareholders) are involved

Corporate Governance
Structure(Annual Report)

G4-41

a. Report processes for the highest governance body to ensure conflicts ofinterest are avoided and managed. Report whether conflicts of interest are
disclosed to stakeholders.
· Cross-board membership· Cross-shareholding with suppliers and other stakeholders· Existence of controlling shareholder· Related party disclosures

—

21
6.2
7.4.3
7.7.5

21

21

Highest Governance Body’s Role in Setting Purpose, Values, and Strategy
G4-42

a. Report the highest governance body’s and senior executives’ roles in thedevelopment, approval, and updating of the organization’s purpose, value
or mission statements, strategies, policies, and goals related to economic,
environmental and social impacts.

Corporate Governance
Structure
CSR Promotion Structure

21
30

6.2
7.4.3
7.7.5

Highest Governance Body’s Competencies and Performance Evaluation
G4-43

a. Report the measures taken to develop and enhance the highest governancebody’s collective knowledge of economic, environmental and social topics.

G4-44

a. Report the processes for evaluation of the highest governance body’s
performance with respect to governance of economic, environmental andsocial topics. Report whether such evaluation is independent or not, and its
frequency. Report whether such evaluation is a self-assessment.
b. Report actions taken in response to evaluation of the highest governancebody’s performance with respect to governance of economic, environmental
and social topics, including, as a minimum, changes in membership andorganizational practice.

—

6.2
7.4.3
7.7.5

—

Highest Governance Body’s Role in Risk Management
a. Report the highest governance body’s role in the identification andmanagement of economic, environmental and social impacts, risks,and opportunities. Include the highest governance body’s role in theimplementation of due diligence processes.
b. Report whether stakeholder consultation is used to support the highest
governance body’s identification and management of economic,
environmental and social impacts, risks, and opportunities.

Corporate Governance
Structure
Risk Management System

21
30

G4-46

a. Report the highest governance body’s role in reviewing the effectiveness ofthe organization’s risk management processes for economic, environmental
and social topics.

Corporate Governance
Structure
Risk Management System

21
30

G4-47

a. Report the frequency of the highest governance body’s review of economic,
environmental and social impacts, risks, and opportunities.

CSR Promotion Structure

30

G4-45

6.2
7.4.3
7.7.5

Highest Governance Body’s Role in Sustainability ReportingG4-48

a. Report the highest committee or position that formally reviews and approves
the organization’s sustainability report and ensures that all material Aspects
are covered.

—75
OLYMPUS CSR REPORT 2016

6.2
7.4.3
7.7.5

Description * Core Indicator

Item

GC
Page Principles

ISO 26000

Highest Governance Body’s Role in Evaluating Economic, Environmental and Social Performance
G4-49

a. Report the process for communicating critical concerns to the highest
governance body.

Corporate Governance
Structure
CSR Promotion Structure

G4-50

a. Report the nature and total number of critical concerns that werecommunicated to the highest governance body and the mechanism(s) used toaddress and resolve them.

—

21
30

6.2
7.4.3
7.7.5

Remuneration and Incentives

G4-51

a. Report the remuneration policies for the highest governance body and senior
executives.
· Fixed pay and variable pay:
- Performance-based pay- Equity-based pay- Bonuses- Deferred or vested shares· Sign-on bonuses or recruitment incentive payments· Termination payments· Clawbacks· Retirement benefits, including the difference between benefit schemes andcontribution rates for the highest governance body, senior executives, and allother employees
b. Report how performance criteria in the remuneration policy relate to thehighest governance body’s and senior executives’ economic, environmental
and social objectives.

(Annual Report)

G4-52

a. Report the process for determining remuneration. Report whether
remuneration consultants are involved in determining remuneration andwhether they are independent of management. Report any other relationships
which the remuneration consultants have with the organization.

(Annual Report)

G4-53

a. Report how stakeholders’ views are sought and taken into account regarding
remuneration, including the results of votes on remuneration policies andproposals, if applicable.

—

G4-54

a. Report the ratio of the annual total compensation for the organization’s
highest-paid individual in each country of significant operations to the medianannual total compensation for all employees (excluding the highest-paid
individual) in the same country.

—

G4-55

a. Report the ratio of percentage increase in annual total compensation for theorganization’s highest-paid individual in each country of significant operations
to the median percentage increase in annual total compensation for all
employees (excluding the highest-paid individual) in the same country.

—

6.2
7.4.3
7.7.5

Ethics and Integrity
G4-56*

a. Describe the organization’s values, principles, standards and norms of
behavior such as codes of conduct and codes of ethics.

Olympus Group Corporate
Conduct Charter

23

10

G4-57

a. Report the internal and external mechanisms for seeking advice on ethicaland lawful behavior, and matters related to organizational integrity, such as
helplines or advice lines.

Compliance Promotion
System

24

10

G4-58

a. Report the internal and external mechanisms for reporting concerns about
unethical or unlawful behavior, and matters related to organizational integrity,
such as escalation through line management, whistleblowing mechanisms or
hotlines.

Compliance Hotline Systems

25

10

76
OLYMPUS CSR REPORT 2016

4.4
6.6.3

Specific Standard Disclosures
Description * Core Indicator

G4-DMA

Item

a. Report why the Aspect is material. Report the impacts that make this Aspectmaterial.
b. Report how the organization manages the material Aspect or its impacts.
c. Report the evaluation of the management approach.
· The mechanisms for evaluating the effectiveness of the management approach· The results of the evaluation of the management approach· Any related adjustments to the management approach

GC
Page Principles

ISO 26000

Employment and Labor
Management Systems
Occupational Safety and
Health Promotion Structure
Health Management
Support System
Promotion Structure
System for Promoting an
Active Role for Diverse
Human Resources
Systems and Mechanisms(Human Rights)
Systems and Mechanisms(Fair Business Practices)
Environmental Management

34
36
37
40
42
44
46
61

6
7.3.1
7.4.3
7.7.3
7.7.5

6.8.1-6.8.2, 6.8.3,
6.8.7, 6.8.9

Economic
Economic Performance
G4-EC1

Direct economic value generated and distributed

Financial Highlights

15

G4-EC2Financial implications and other risks and opportunities for the organization’s
activities due to climate change

Environmental Risk
Management62

G4-EC3Coverage of the organization’s defined benefit plan obligations

—

6.8.7

G4-EC4

Financial assistance received from government

—

—

10

6.5.5

Market Presence
G4-EC5

Ratios of standard entry level wage by gender compared to local minimum wage
at significant locations of operation—

6

6.3.7, 6.3.10,
6.4.3, 6.4.4,
6.8.1-6.8.2

G4-EC6

Proportion of senior management hired from the local community at significant
locations of operation—

6

6.4.3, 6.8.1-6.8.2,
6.8.5, 6.8.7

Indirect Economic Impacts
G4-EC7Development and impact of infrastructure investments and services supported—

6.3.9, 6.8.1-6.8.2,
6.8.7, 6.8.9

G4-EC8Significant indirect economic impacts, including the extent of impacts—

6.3.9, 6.6.6,
6.6.7, 6.7.8,
6.8.1-6.8.2,
6.8.5, 6.8.7,
6.8.9

—

6.4.3, 6.6.6,
6.8.1-6.8.2,
6.8.7

Procurement Practices
G4-EC9Proportion of spending on local suppliers at significant locations of operation

Environmental
Materials
G4-EN1

Materials used by weight or volume

Material Balance

G4-EN2

Percentage of materials used that are recycled input materials

—

65

7, 8

G4-EN3

Energy consumption within the organization

Energy/Atmospheric Release

66

7, 8

6.5.4

G4-EN4

Energy consumption outside of the organization

Energy/Atmospheric Release

66

8

6.5.4

G4-EN5

Energy intensity

Energy/Atmospheric Release

66

8

6.5.4

G4-EN6

Reduction of energy consumption

Energy/Atmospheric Release

66

8, 9

6.5.4
6.5.5

G4-EN7

Reductions in energy requirements of products and services

—

8, 9

6.5.4
6.5.5

G4-EN8

Total water withdrawal by source

Water/Waste

G4-EN9Water sources significantly affected by withdrawal of water—

8

G4-EN10Percentage and total volume of water recycled and reused

—

8

8

6.5.4

Energy

Water
68

7, 8
6.5.4

Biodiversity
G4-EN11

Operational sites owned, leased, managed in, or adjacent to, protected areas
and areas of high biodiversity value outside protected areas—

G4-EN12

Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas—

G4-EN13

Habitats protected or restored—

G4-EN14

Total number of IUCN Red List species and national conservation list species with
habitats in areas affected by operations, by level of extinction risk—

77
OLYMPUS CSR REPORT 2016

8

6.5.6

8

6.5.6

Description * Core Indicator

Item

GC
Page Principles

ISO 26000

Emissions
G4-EN15

Direct greenhouse gas (GHG) emissions (Scope 1)

Energy/Atmospheric Release

66

G4-EN16

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Energy/Atmospheric Release

66

G4-EN17

Other indirect greenhouse gas (GHG) emissions (Scope 3)

Energy/Atmospheric Release

66

G4-EN18

Greenhouse gas (GHG) emissions intensity

Energy/Atmospheric Release

66

8

66

8, 9

7, 8
6.5.5

G4-EN19

Reduction of greenhouse gas (GHG) emissions

Energy/Atmospheric Release

G4-EN20

Emissions of ozone-depleting substances (ODS)—

G4-EN21

NOx, SOx, and other significant air emissions

Energy/Atmospheric Release

66

6.5.3
6.5.3
6.5.4

7, 8

6.5.3
6.5.5

Effluents and Waste
G4-EN22

Total water discharge by quality and destination

Water/Waste

68

G4-EN23

Total weight of waste by type and disposal method

Water/Waste

68

G4-EN24

Total number and volume of significant spills

Environmental Risk
Management

62

G4-EN25

Weight of transported, imported, exported, or treated waste deemed hazardous
under the terms of the Basel Convention2 Annex I, II, III, and VIII, and percentageof transported waste shipped internationally—

G4-EN26

Identity, size, protected status, and biodiversity value of water bodies andrelated habitats significantly affected by the organization’s discharges of waterand runoff

—

8

6.5.3

6.5.3
6.5.4
6.5.6

Products and Services
G4-EN27

Extent of impact mitigation of environmental impacts of products and services

Environmentally Conscious
Products

G4-EN28

Percentage of products sold and their packaging materials that are reclaimed
by category—

70

7, 8, 96.5.3, 6.5.4,
6.5.5, 6.7.5

8

6.5.3, 6.5.4,
6.7.5

Compliance
G4-EN29

Monetary value of significant fines and total number of non-monetary sanctions
for non-compliance with environmental laws and regulations

Environmental Risk
Management

62

8

4.6

Significant environmental impacts of transporting products and other goods andmaterials for the organization’s operations, and transporting members of theworkforce

Energy/Atmospheric Release

66

8

6.5.4
6.6.6

Total environmental protection expenditures and investments by typeEnvironmental Accounting

72

7, 8, 96.5.1-6.5.2

Transport
G4-EN30

Overall
G4-EN31

Supplier Environmental Assessment
G4-EN32

Percentage of new suppliers that were screened using environmental criteria—

G4-EN33

Significant actual and potential negative environmental impacts in the supply
chain and actions taken

Supplier survey
Green Procurement

32
63

8

6.3.5
6.6.6
7.3.1

Environmental Risk
Management

62

8

6.3.6

35

6

6.4.3

Environmental Grievance Mechanisms
G4-EN34

Number of grievances about environmental impacts filed, addressed, andresolved through formal grievance mechanisms

SocialLabor practices and decent work
Employment
G4-LA1

Total number and rates of new employee hires and employee turnover by age
group, gender, and region

Employment-Related Data

G4-LA2

Benefits provided to full-time employees that are not provided to temporary or
part-time employees, by significant locations of operation—

G4-LA3Return to work and retention rates after parental leave, by gender

Employment-Related Data

35

6

6.4.4

Minimum Notice Period
Regarding Operational
Changes

35

3

6.4.3
6.4.5

6.4.4
6.8.7

Labor/Management Relations
G4-LA4

Minimum notice periods regarding operational changes, including whether theseare specified in collective agreements

Occupational Health and Safety
G4-LA5Percentage of total workforce represented in formal joint management-worker
health and safety committees that help monitor and advise on occupational
health and safety programs

Labor-Management
Consultation

35

6.4.6

G4-LA6

Type of injury and rates of injury, occupational diseases, lost days, andabsenteeism, and total number of work-related fatalities, by region and by gender

Safety & Health Promotion
Activities

36

G4-LA7

Workers with high incidence or high risk of diseases related to their occupation

—

6.4.6
6.8.8

G4-LA8

Health and safety topics covered in formal agreements with trade unions—

78
OLYMPUS CSR REPORT 2016

6.4.6

Description * Core Indicator

Item

GC
Page Principles

ISO 26000

Training and Education
G4-LA9Average hours of training per year per employee by gender, and by employee
category—

G4-LA10Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings

Systems and Mechanisms(Training and Education)

G4-LA11Percentage of employees receiving regular performance and careerdevelopment reviews, by gender and by employee category

—

6

6.4.7
6.4.7
6.8.5

40
6

6.4.7

6

6.2.3, 6.3.7,
6.3.10, 6.4.3

6

6.3.7, 6.3.10,
6.4.3, 6.4.4Diversity and Equal Opportunity
G4-LA12Composition of governance bodies and breakdown of employees per employee
category according to gender, age group, minority group membership, andother indicators of diversity

Employment-Related Data
Diversity of Human
Resources

35
42

Equal Remuneration for Women and Men
G4-LA13

Ratio of basic salary and remuneration of women to men by employee category,by significant locations of operation—

Supplier Assessment for Labor Practices
G4-LA14

Percentage of new suppliers that were screened using labor practices criteria—

G4-LA15Significant actual and potential negative impacts for labor practices in the supply
chain and actions taken

Supplier survey

6.3.5
6.4.3
6.6.6
7.3.1

32

Labor Practices Grievance Mechanisms
G4-LA16

Number of grievances about labor practices filed, addressed, and resolved
through formal grievance mechanisms

—

6.3.6

Human Rights
Investment
G4-HR1

Total number and percentage of significant investment agreements andcontracts that include human rights clauses or that underwent human rights
screening

—

2

6.3.3
6.3.5
6.6.6

G4-HR2

Total hours of employee training on human rights policies or procedures
concerning aspects of human rights that are relevant to operations, including thepercentage of employees trained

—

1

6.3.5

—

6

6.3.6, 6.3.7,
6.3.10, 6.4.3

Non-discrimination
G4-HR3

Total number of incidents of discrimination and corrective actions taken

Freedom of Association and Collective Bargaining
G4-HR4

Operations and suppliers identified in which the right to exercise freedom of
association and collective bargaining may be violated or at significant risk, andmeasures taken to support these rights

Supplier survey
Initiatives with Suppliers
Human Rights Due
Diligence

32
44
45

3

6.3.3, 6.3.4,
6.3.5, 6.3.8,
6.3.10, 6.4.5,
6.6.6

Supplier survey
Initiatives with Suppliers
Human Rights Due
Diligence

32
44
45

5

6.3.3, 6.3.4,
6.3.5, 6.3.7,
6.3.10, 6.6.6,
6.8.4

Supplier survey
Initiatives with Suppliers
Human Rights Due
Diligence

32
44
45

4

6.3.3, 6.3.4,
6.3.5, 6.3.10,
6.6.6

—

1

6.3.4, 6.3.5,
6.6.6

—

1

6.3.4, 6.3.6,
6.3.7, 6.3.8,
6.6.7, 6.8.3—

1

6.3.3, 6.3.4,
6.3.5

2

6.3.3, 6.3.4,
6.3.5, 6.6.6

1

6.3.6

Child Labor
G4-HR5

Operations and suppliers identified as having significant risk for incidents of childlabor, and measures taken to contribute to the effective abolition of child labor

Forced or Compulsory Labor
G4-HR6

Operations and suppliers identified as having significant risk for incidents offorced or compulsory labor, and measures to contribute to the elimination of all
forms of forced or compulsory labor

Security Practices
G4-HR7

Percentage of security personnel trained in the organization’s human rights
policies or procedures that are relevant to operations

Indigenous Rights
G4-HR8

Total number of incidents of violations involving rights of indigenous peoples andactions taken

Assessment
G4-HR9Total number and percentage of operations that have been subject to humanrights reviews or impact assessments

Supplier Human Rights Assessment
G4-HR10Percentage of new suppliers that were screened using human rights criteria—

G4-HR11Significant actual and potential negative human rights impacts in the supply
chain and actions taken

Supplier survey
Initiatives with Suppliers

32
44

Human Rights Grievance Mechanisms
G4-HR12

Number of grievances about human rights impacts filed, addressed, andresolved through formal grievance mechanisms—

79
OLYMPUS CSR REPORT 2016

Description * Core Indicator

Item

GC
Page Principles

ISO 26000

Society
Local Communities
G4-SO1
G4-SO2

Percentage of operations with implemented local community engagement,
impact assessments, and development programs—

Operations with significant actual or potential negative impacts on local
communities—

6.3.9, 6.5.3
6.8
6.6.1-6.6.2
6.6.3

1

6.3.9, 6.5.1-6.5.2,
6.5.3, 6.8

Anti-corruption
G4-SO3

Total number and percentage of operations assessed for risks related tocorruption and the significant risks identified—

G4-SO4

Communication and training on anti-corruption policies and proceduresCompliance Education
Prevention of Bribery

26
46

G4-SO5

Confirmed incidents of corruption and actions taken

Status of Legal Compliance27

10

6.6.1-6.6.2,
6.6.3, 6.6.6
6.6.1-6.6.2
6.6.3

Public Policy
G4-SO6

Total value of political contributions by country and recipient/beneficiary—10

6.6.1-6.6.2
6.6.4

Anti-competitive Behavior
G4-SO7

Total number of legal actions for anti-competitive behavior, anti-trust, andmonopoly practices and their outcomes

6.6.1-6.6.2
6.6.5
6.6.7

—

Compliance
G4-SO8

Monetary value of significant fines and total number of non-monetary sanctions
for non-compliance with laws and regulations

Status of Legal Compliance

27

4.6

32

6.3.5, 6.6.1-6.6.2,
6.6.6, 6.8.1-6.8.2,
7.3.1

Supplier Assessment for Impacts on Society
G4-SO9Percentage of new suppliers that were screened using criteria for impacts onsociety—

G4-SO10Significant actual and potential negative impacts on society in the supply chain
and actions taken

Supplier survey

Grievance Mechanisms for Impacts on Society
G4-SO11

Number of grievances about impacts on society filed, addressed, and resolved
through formal grievance mechanisms

—

6.3.6
6.6.1-6.6.2
6.8.1-6.8.2

Product Responsibility
Customer Health and Safety
G4-PR1

Percentage of significant product and service categories for which health andsafety impacts are assessed for improvement—

6.7.1-6.7.2, 6.7.4,
6.7.5, 6.8.8

G4-PR2

Total number of incidents of non-compliance with regulations and voluntary
codes concerning the health and safety impacts of products and services during
their life cycle, by type of outcomes—

4.6, 6.7.1-6.7.2,
6.7.4, 6.7.5,
6.8.8

Product and Service Labeling
G4-PR3

Type of product and service information required by the organization’s
procedures for product and service information and labeling, and percentage
of significant product and service categories subject to such information
requirements—

6.7.1-6.7.2,
6.7.3, 6.7.4,
6.7.5, 6.7.9

G4-PR4

Total number of incidents of non-compliance with regulations and voluntary
codes concerning product and service information and labeling, by type ofoutcomes—

4.6, 6.7.1-6.7.2,
6.7.3, 6.7.4,
6.7.5, 6.7.9

G4-PR5Results of surveys measuring customer satisfaction—

6.7.1-6.7.2
6.7.6

Marketing Communications
G4-PR6

Sale of banned or disputed products——

G4-PR7

Total number of incidents of non-compliance with regulations and voluntary
codes concerning marketing communications, including advertising, promotion,and sponsorship, by type of outcomes—

4.6
6.7.1-6.7.2
6.7.3

—

6.7.1-6.7.2
6.7.7

—

4.6
6.7.1-6.7.2
6.7.6

Customer Privacy
G4-PR8

Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data

Compliance
G4-PR9

Monetary value of significant fines for non-compliance with laws and regulations
concerning the provision and use of products and services

80
OLYMPUS CSR REPORT 2016

Assurance Statement related to GHG Emissions

Assurance Statement related to GHG Emissions (1/2)

81
OLYMPUS CSR REPORT 2016

Assurance Statement related to GHG Emissions (2/2)

82
OLYMPUS CSR REPORT 2016

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

Olympus Corporation Social Responsibilities Activities website

TEL: +81-3-6901-9299

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

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