Executive Dialogue

P3

Moving forward as a company that contributes to society

Customers

P7

Delighting our customers with Eco-products
Creating chairs that our customers genuinely need

Local Communities

P11

Forming an integral part of a local community:
wider use of reeds to protect Lake Biwa

Environmental Protection

P13

The Yui no mori Project enters its fifth year.
Understanding the difficulties of forestry conservation.
Achieving zero Eco-X Marks over a 3-year period.
The ongoing evolution in balancing manufacturing with ecology:
Eco LiveOffice Shinagawa

Business Activities

P17

Creating a workplace facilitating mutual
discussion of realizations and troubles

Human Rights
Efforts to promote diversity

P19

Fundamental Approach
The KOKUYO Group started in 1905, when founder Zentaro Kuroda opened a little store
selling paper covers for wacho (Japanese account books). Involving many layers of thin
Japanese washi paper, creating these covers was regarded as a thankless, unglamorous
business; at the time, it was even considered a ‘gratuitous business.’ However, Zentaro
Kuroda threw himself enthusiastically into this work, certain it would benefit the world, as
he held a lifelong dedication to this principle. Ever since, for over 100 years, the spirit of our
founder has been enshrined in the KOKUYO Management Creed, as well as the Corporate
Philosophy introduced some time later: “Contributing to Society by Providing Superior
Products.” This Philosophy guides KOKUYO in its ongoing business activities.
Based on the Corporate Philosophy established since the company’s founding, in2004 the KOKUYO Group established a CSR Charter, which outlines our role within society
as a good corporate citizen, and enables us to build optimum relationships with diverse
stakeholders. The Charter outlines basic policies to help drive the sustainable developmentof both the KOKUYO Group and society as a whole, based on five clearly defined themes:
Customers, Local Communities, Environmental Protection, Business Activities, and Human
Rights. Furthermore, the KOKUYO Group has also established a Code of Conduct to guidethe company’s daily activities.

Management Creed
Gratuitous BusinessCorporate Philosophy“Contributing to Society by Providing
Superior Products”
KOKUYO GroupCSR Charter

KOKUYO Group
Code of Conduct

Editorial Remarks
The KOKUYO Group CSR Report 2011 Digest reports on the principal activities undertaken and challenges met during 2010 with regard toeach of the themes of the KOKUYO Group CSR Charter: Customers, Local Communities, Environmental Protection, Business Activities, andHuman Rights. Significant emphasis has been placed on this document as a tool for communication, and it has been edited with a focus on
executive intentions, the thoughts and opinions of staff members involved in CSR activities at all levels, consideration of future directions worth
striving toward, and more.
Also, the scope of reporting on CO2 emissions and other waste emission data has been expanded beyond the 2010 report to include theperformance of 6 non-consolidated subsidiary companies.

Reporting on the website

KOKUYO CSR Activities

KOKUYO Environment & Future

IR Information

Information relating to CSR is publicallyavailable on the KOKUYO website. The
website includes more detailed data than
this document, and is updated with new
information whenever appropriate. Our
CSR Activities site also features a survey
enabling anyone to leave their opinions
and impressions of both this document
and the KOKUYO Group’s CSR activities.
http://www.kokuyo.co.jp/com/csr/(Japanese only)

http://www.kokuyo.co.jp/ecology/(Japanese only)

http://www.kokuyo.co.jp/ir/(Japanese)
http://www.kokuyo.co.jp/ar/(English)Materiality Analysis
In order to further clarify major issues to be addressed by the KOKUYO Group as part of its
CSR activities, we have conducted a materiality analysis. In 2010, a survey was undertaken ofboth external stakeholders and group employees, and the results organized as a Materiality
Matrix. While this was edited and published as a booklet, the contents have also been madepublically available on the KOKUYO website, and have been adopted for use as an index.

http://www.kokuyo.co.jp/com/csr/materiality.html(Japanese only)

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KOKUYO GROUP CSR REPORT 2011

KOKUYO Group CSR Charter
The KOKUYO Group shall be sincere in its pursuit of business and shall be an enterprise needed by society, evenas it strives to enhance profitability. This endeavor shall follow the Corporate Philosophy that has guided KOKUYO
since its founding: “Contributing to Society by Providing Superior Products.” By observing its legal obligations andfulfilling its social responsibilities as a corporate citizen, KOKUYO shall win the trust of customers, stockholders,and all parties concerned and maintain the sustainability of its business.

Customers

P. 7

1. KOKUYO shall assure customer satisfaction and earn customer trust by taking the customer’s point ofview, and by planning and offering products and services accordingly, thereby continuing to serve a
useful purpose in the world.
2. KOKUYO shall be a unique business that continuously offers creativity, efficiency, and ease of use as it
actively leads the way to help both customers and itself evolve.

Local Communities

P. 11

1. KOKUYO understands that it is a member of the community, and shall seek to be a good corporate
citizen trusted by society because of the way it interacts with local communities, contributes to society inmany ways, and helps to build a rich society.

Environmental Protection

P. 13

1. KOKUYO recognizes protection of the global environment from threats such as global warming anddeforestation as one of the greatest concerns of all humanity, and thus it shall use the combined wisdomof its employees and mobilize them to solve these issues.
2. KOKUYO recognizes its responsibilities as a provider of products and a consumer of resources, and assuch shall strive to maintain in all its activities an awareness of the three R’s: Reduce, Reuse, Recycle.

Business Activities

P. 17

1. KOKUYO shall compete freely, fairly, and transparently, shall have fair trade with its business partners,
and shall maintain healthy and proper relationships with government and authorities.
2. To assure that KOKUYO’s relationships with its suppliers are always fair and that KOKUYO remains atrusted company, KOKUYO shall cooperate with its suppliers and shall seek to grow together with them.
3. KOKUYO recognizes its duty to shareholders to increase corporate value, and shall assure transparent,
healthy corporate management to earn the trust of society.

Human Rights

P. 19

1. KOKUYO shall respect the rights of all persons with whom it deals in all aspects of business. It shall strive
for a working environment free of discrimination and shall never tolerate child labor or forced labor.
2. KOKUYO shall respect the individuality of each employee and shall offer a workplace that allows
employees to fully express their autonomy and talents. KOKUYO shall aim to be one of Japan’s leading
companies in employee satisfaction.

KOKUYO GROUP CSR REPORT 20112

Akihiro Kuroda

Hisao Sakuta

President
KOKUYO Co., Ltd

President & CEO
OMRON Corporation

Executive
Dialogue

Moving forward as acompany that contributes
to society– Self-motivated creativity helps achieve a sustainable society –Based on the philosophy that has motivated the company since its founding, KOKUYO continues to provide
the new value sought by global society and contribute to a sustainable global environment. KOKUYO shares
this outlook with OMRON Corporation, global producers of healthcare equipment and environmentally-friendly
technology etc. We invited President & CEO of OMRON, Hisao Sakuta, to visit Eco LiveOffice Shinagawa andengage in dialogue on how companies can and should make efforts towards achieving a sustainable society.

3

KOKUYO GROUP CSR REPORT 2011

Promoting self-motivated actions from staff to address
an evolving environment
Kuroda: Thank you for coming to visit us at Eco LiveOffice Shinagawa, Mr. Sakuta.
Sakuta: It's quite different from a regular office, isn't it? All your employees seem to be enjoying themselves. Our
company is also working to implement new ideas, but many of these efforts seem to lose momentum and disappear
after a while; it takes about 10 years for the mechanisms we set up to operate in a self-sustaining fashion. Visiting
this office, I was quite surprised by the amount of self-motivated work undertaken by your employees. It really is ideal
when every single action they undertake can be linked back to their work tasks, to form a sustainable work model.
Kuroda: That’s exactly right. It’s important that our efforts are ongoing and continuous, rather than fizzling out after ashort time.
Sakuta: The concept for the HARMONii circular work system (*1) I viewed just before (Figure 1 ) seems like it would
work in our production facilities too. Creating a U-shaped production line set-up with a central shared space would
be effective, because it would enable various work tasks to be conducted independently, while workers can cometogether to use the shared facilities. Since incorrect handling of soldering irons etc. can cause flawed products, senior
workers need to supervise junior workers and instruct them in the fundamentals of their tasks. At the moment, thesesenior employees move about the production line providing instruction, but I think this can be improved upon.
Kuroda: The office is the same. The simple term office work includes some tasks that can be completed individually,
as well as more communal team-based tasks. By creating an office environment to ensure the smooth performance of
these diverse tasks and by establishing mechanisms to facilitate everyday communication, we can expect results over
and above a simple [1+1=2] result.

*1 This is a desk system of outward-facing individual spaces and inward-facing shared spaces. It is explained in further detail on page 16.

12

Where self-directed creativity emerges,
work becomes more enjoyable.
Kuroda: Examining office work, we find some major themes: firstly, that we seek both optimization of efficiency andimprovement of comfort. I believe that the imagination to create one from zero – to create something from nothing –requires creative ability. However, while environmental results can be measured quantitatively with numbers, it is very
difficult to quantify imagination. For this reason, it is currently difficult to move ahead with investing in the creative.
Fortunately, since we are engaged in manufacturing, the results of our investment in creativity appear as tangible
products, such as the aforementioned HARMONii system or our environmentally friendly products.
Keeping less tangible matters in mind, too, we have adopted an approach that utilizes the five human senses. We
are working to develop products that use colors and aromas to change perceptions of temperature, in order to help
conserve energy. (Figure 2 )Sakuta: The use of aroma is a very interesting concept. Creativity does not emerge without independent will and selfdirection. At Omron, we often use the term “autonomous.” This means exercising one’s own creativity by using one’s
own resolve, thinking for oneself, and acting on one’s own. In 1987, when I was 42 years old, our current Chairman
Yoshio Tateishi said the following words to me when he became President & CEO of the company: “In order for Omron
to grow, we need management that looks beyond the founder’s vision.” If all we do is stay faithful to the ideas handed
down from above, creativity will not emerge. I think the ideal answer to the question “Why are you doing that?” should

KOKUYO GROUP CSR REPORT 20114

not be “Because it’s company policy,” but rather “Because I want to.”When I was invited to participate in this dialogue, it interested me personally. I’m here today because I want to be
here.
Kuroda: Thank you very much. I have also been looking forward to our discussion very much.
Sakuta: This idea of “enjoyment” is important. Whenever I find the opportunity, I ask people – anyone – if they are
enjoying themselves. Of course, it’s not possible for company employees to live completely free and easy and selfdirected all the time. Half our efforts are for our country, our organization, or our company. However, I think the otherhalf needs to be self-directed, or else we won’t enjoy ourselves To an extent, we are obligated to accept the ordersof those above us, but we can devise ways to make these more enjoyable to carry out. For example, if you normally
produce 1 item per hour, why not consider whether there is some method of increasing this to 2 items per hour?
By actively thinking for yourself and working towards ideal outcomes, creativity emerges and work becomes moreenjoyable, I believe.
Kuroda: I think management plays an extremely large role to that end. If management pays attention to whether
the employees are enjoying themselves or not, and makes efforts to create an environment facilitating constantimprovement, I believe it is possible to continuously draw out the self-motivated qualities of employees, which willlead to the sustainable work model that you mentioned at the outset.

Creation of new value leads to sustainability
Kuroda: If we cross the point of no return, humans will not be able to turn things around with science or technology.
Global warming is well underway now, and a billion people are starving. What can we do to resolve this situation?
There are many fine things that we could say about the situation. But in practical terms, as a company engaged in
manufacturing, what can we do about it?
Well, we have successfully achieved our 3-year goal for the “Eco-X Mark” program (*2) that we introduced toeliminate from our General Catalog all of our products that were not sufficiently Environmentally-friendly. And we
intend to continue undertaking such sustainable activities in the future, As much as possible.
Sakuta: As you say, if it’s just a matter of talking, anyone can talk about these problems. I believe that it’s extremely
important to ask oneself, “Well, what can I actually do about this?” Omron is sincerely committed to recycling, reusing,and saving resources. Fundamentally, we do not undertake any actions that hinder recycling. We have designs inplace that enable us to reuse metallic resources, and so on. And we strive to make sparing use of resources such as
oil that cannot be recycled or reused. These efforts are not only carried out within the company; we also propose themas solutions for our customers.
Kuroda: Even if not directly linked to economic outcomes, We will continue to undertake any efforts judged
necessary from a CSR standpoint. Since we have now achieved our zero “Eco-X Mark” goal, I think the next challenge
is moving towards 100% recycling of waste materials from our offices, factories, and construction sites.

5

KOKUYO GROUP CSR REPORT 2011

Sakuta: On the other hand, a contradiction does exist here: as a manufacturer, The pursuit of sustainability can posea threat to our continued existence. For the last 31 years, I have continued to use an Omron calculator manufactured
in 1980. The numbers have worn off the buttons, but I know their positions, of course, so I have no trouble using it.
This sort of long-lived product can represent a headache from the manufacturer’s viewpoint.
Kuroda: Because for that 30-year period, you didn’t need to buy another calculator, did you?
Sakuta: It’s a mistake to try to force the customer to understand the value of that 30-year old product in the firstplace. All you can do is continue to propose new added value every day.
Kuroda: Exactly. As manufacturers, all we cando is move ahead and continue to find new value,
I think. At present, KOKUYO is making efforts
toward pushing the limit. This means being
conscious of being the best we can be in every
regard. For instance, consider our elimination of
metallic staples from the Harinacs stapler (*3).
This truly represents “the best we can be” inregard to conserving staples, since there are no
actual staples at all now! Another example is ourscissors with non-stick blades for cleanly cutting
highly adhesive tape; with regards to being able
to cut tape cleanly, they couldn’t be any better.
These products have effectively enlarged thescope of the current stapler and scissors markets. I believe that customers have recognized this new value we havecreated.
(*2) The “Eco-X Mark” program awarded an X to each of our products that was not sufficiently environmentally considerate, working toward 100%
elimination of these from our product lineup. See page 14 for further details.
(*3) This is a stapler capable of fastening paper without using metallic staples. See page 7 for further details.

Business itself is CSR in action
Sakuta: At Omron, we do seek to convey this term CSR outside the company, but inside the company it is rarely used.
Our company’s founder, Kazuma Tateishi, 52 years ago stated that the company must be “Working for the benefit ofsociety.” To fit this into the context of the CSR so widely discussed today, we are saying that our company itself is CSR inpractice. Well then, as a public institution, what should a company do? Companies should challenge themselves to bringabout innovation driven by social needs. At Omron, this concept is enshrined in our management philosophy. Even when
demand exists and we stand to profit, Omron will not undertake business activities that have any anti-social element.
For example, health management is a universal need that exists in every country; Omron’s global market shareof blood pressure monitors, for example, exceeds 50%. However, people in Russia measure blood pressure for very
different reasons from people in the USA or Japan. In the USA and Japan, it is done to guard against lifestyle diseases
in general, but in Russia, people are concerned about increased blood pressure caused by drinking alcohol to staywarm in cold conditions. So it’s not enough to say to global consumers they should measure their blood pressure
to manage their health. You have to ask: Why do people in a certain country or area want to manage their bloodpressure? What sorts of methods are appropriate? How can we make use of the data? I believe that undertaking athorough examination of social needs and then proposing solutions is itself CSR in action.
Kuroda: What you say clarifies the concept that business itself is CSR in action. I have also tried to thoroughly
implement and promote our founder’s idea of “Contributing to society by providing superior products”.
However, as you mention, travelling overseas you quickly realize that needs vary among different countries.
KOKUYO first started developing business overseas in the 1990s, so we still lack experience. We will continue todevise ways to contribute to society by expanding our business on a global level in future, particularly centered on
Asia.
Sakuta: At Omron, we are also starting to focus on some new goals. In 2011, we will be implementing a new
management structure. We undertake this every 10 years, so we’re working very hard now to rejuvenate ourmanagement team. The issue we’re currently facing is how smoothly stakeholders will accept the new regime.
Kuroda: I was struck by your remark earlier about how a company must look beyond the vision of its founder tobecome self-sustaining. I think this is a wonderful notion.
We are also working to review once more the social responsibilities of our company, in order to create new value
without simply falling back upon our previous efforts, while maintaining the fundamental spirit that has kept thecompany strong since its founding. I also think that KOKUYO also needs to create mechanisms to facilitate CSR
practices within its expanding overseas business.
Today’s discussion was extremely interesting, and I feel I learned a great deal. Thank you very much.
KOKUYO GROUP CSR REPORT 2011

6

Customers(from left)

Kazuyuki Masuda

Hirokazu Aoi

Shigeji Sato

Core-Tech Development Value Unit,
Planning Group
Creative Products Division
KOKUYO S&T Co., Ltd.

Development Group 1 Leader
Core-Tech Development Value Unit
Creative Products Division
KOKUYO S&T Co., Ltd.

Group Leader, Product Group 2
Quality Assurance Department
KOKUYO S&T Co., Ltd.

Delighting our customers with
Eco-products
Safety and security repercussions beyond the environment
From our program to reduce Eco-X Marks* was born the staple-lessHarinacs stapler. After the new Handy Type was released in July 2010,
it proved its popularity by achieving its yearly sales target in a scant two
and a half months.
Initially, KOKUYO’s strategy was to emphasize that the Harinacs
was Eco-friendly, then next Efficient, then finally Safe. However, after
development, it was discovered that customers were much more
conscious of safety than any other factors. From comments such as “I
use it to lay lining paper out for my pets, since they won’t accidentally
eat the staples,” we learned about a lot of new ways to use the productthat we hadn’t considered previously.

Staple-less stapler
Harinacs (Handy Type)
Easily operated in one hand, this user-friendly
model is popular.

Customers love these
Harinacs features!

Eco-friendly
The Handy Type is not only for stapling
documents; it can be used for many otherkinds of things too, such as kids’ crafts.

Fun
Fascinating stapling mechanism
Stapling action sounds and feels fun!

But is it really handy for customers?
When creating products, it is essential to consider the environment.
However, simply being eco-friendly is a matter of course; these days, thechallenge is to create new value beyond this. Releasing an awkward or
annoying product due to misplaced emphasis on environmental aspects
is evidence of backwards priorities. Sustaining eco-friendliness for thesake of sheer stubbornness is both difficult and pointless.
Is it really handy for customers? Do customers need it? This is
the perspective we need to constantly maintain. We will continue toundertake manufacturing while observing the corporate philosophy
passed down from the company’s founder, Zentaro Kuroda, of“Contributing to Society by Providing Superior Products.”

Saves resources – uses no staples

Efficient
No need to remove staples
when disposing
Just throw documents into theshredderSafe
The 2-Hole Type fastens documents
simultaneously in 2 locations, while also
punching filing holes. It was awarded
the highest level of the Nikkei Superior
Products and Services Award .

For health providers,food & beverage businesses
No “foreign object” danger from
staples
For offices, schools, homes
No risk of staple injuries*Our “Eco-X Mark” program awarded an X to each of our products that was not sufficiently environmentally considerate, working toward 100%
elimination of these from our product lineup. See page 14 for further details.

7

KOKUYO GROUP CSR REPORT 2011

Senior citizens homes & nursery
centers
No risk of accidental ingestion of
staplesProposed an allpaper solution where
everything – file andset – is made of paper.
Handy for all-in-one
disposal.

Proposed a war ning
reminder sticker for
blades and moving
parts to ensure evensafer use of theHarinacs.

The “joy of use” perspective

Discussion across departments

I was struck by the words of a customer who described enjoying
the sound and feel of the fastening action when using the Harinacs at
an exhibition. So I created a demonstration kit for sales representatives
to carry around. When they visit a potential client, they candemonstrate both the ease of use and the fun qualities of the Harinacs,
which can only help the chance of further purchases.

During development, representatives from many various
departments gather for discussions. Different departments havedifferent ways of viewing each product. This diversity can improve our
products, and can help us move closer to the customer’s perspective.
The Quality Assurance Department prioritizes safety; we believe thateven functions intended for added convenience should not adopted if
these are not safe.

Cross-functional* power:
providing products to benefit customers
Pursuit of the“never seen before”

Uncover hidden treasure,
simply by listening

Knowing that the 2-Hole Type would be used communally inthe office space, we decided on sober black: it always looks clean!
On the other hand, since the Handy Type is for individual use, wetook the various colors of mobile phones as inspiration. Since theseare different from conventional office supply colors, they look more
distinctive in the store. A lot of customers purchase these after being
attracted to a particular color.

At KOKUYO, we have a saying: “Listen to each and every
customer.” This means listening to individuals. The voices of every
single one of our customers contain hints about products theyrequire. Following the wisdom of this expression, we listened not only
to our customers, but to all kinds of people, including companies,
government departments, friends, and others. The opinions we
received were comprehensively incorporated into the Harinacs.

The Handy Type wasreleased for sale in 5colors. Cheerful colors
such as yellow-green
and pink are popular!

Created a transparent
window for viewing thefastening mechanism in
response to customers
wanting to better
understand this. Thisis handy and effective,
since it also shows thework area better.

*Cross-functional: Here taken to mean problem-solving and the creation of extra value through cooperation among different organizations or departments. Also means accepting
the inherent value of different industries.

Maintaining our position as acompany of choice

We have a system in place using an intranet to enable all employees to access the opinions coming into ourcustomer consultation department. There were many positive remarks about the Harinacs, and as manufacturers,
we really experienced the joy of “Contributing to Society by Providing Superior Products.”
At the same time, it is a little frightening. If so many customers find the product easy of use, it implies great
responsibility for us. Can we prevent accidents? Is the product inconvenient in any way? Can we make it eveneasier to use? We think about these issues even after the product is released for sale.
Our job does not stop after manufacturing is complete. We operate using the PDCA cycle: Plan (design); Do(manufacture); Check (confirm the quality of products); and Act (improve products to make them ever better). We
will continue to delight our customers by releasing better products than ever.

Harinacs website
http://www.kokuyo-st.co.jp/stationery/sl-stapler/ (Japanese only)

KOKUYO GROUP CSR REPORT 20118

Customers(from left)

Nobuyuki Ueda

Masayoshi Suzuki

Product Development Division,
Core Product Department
KOKUYO FURNITURE Co.,Ltd.

Product Development Division,
01 Product Department
KOKUYO FURNITURE Co.,Ltd.

Creating the chairs that ourcustomers genuinely need
It might be packed with functions,but do you know how to use them?
The office environment has changed radically thanks toglobalization and the information technology revolution. Naturally, theoffice chair has evolved accordingly, and high-functionality models
seem to be very popular these days.
However, when we demonstrate chairs for customers at exhibitions,
we are often surprised at their comments regarding chair functions. One
frequent comment is “I don’t understand the adjustment mechanism,
so I just use the chair as is, without adjusting for my body.” This tends
to place excessive load on shoulders and lower back. We have cometo realize that many users simply have not mastered use of thesefunctions.

M4

Minimum Maximum ×Motivation Majority

Minimum operation for maximum comfort.
Enjoyable motivation for a majority of users.

Those who purchase office chairs areoften not the same people who use them.
People also tend to change places anduse chairs originally assigned to others.
This is why KOKUYO attaches instructions
for use on the back of each chair.

Mechanism adjusts as
required, depending on
weight of user.
Locking requires
light effort for
low-weightusers

Concern for customers creates opportunities
for development
We decided to create a chair that was easy to operate, by stripping away all functions except those ourcustomers genuinely required. One thing we decided upon was a mechanism for automatically changing thelocking force required, depending on body weight. Actually, this mechanism had already existed for some time; it
was just uncomfortable to use, and so it never became widespread.
Over several months, we conducted many trials and experiments to improve this point. However, comfort
of use just did not improve. In fact, no matter what we changed, it just seemed to make the problem worse. But
whenever we were about to give up, whenever we concluded that the mechanism itself was impractical, we
remembered that we wanted to create a chair that was useful for our customers. After trying all kinds of tedioustrial-and-error adjustments, we finally struck the perfect balance of comfort and function. With nothing more than
the sitting action, our new chair would adjust automatically to any user. The M4 chair was born.
We learned a valuable lesson here: that concern for our customers is really the foundation of all
manufacturing.

9

KOKUYO GROUP CSR REPORT 2011

Locking requires
more effort for
high-weightusersBuilt for comfort; even
if the next user (in ameeting room) takes aseat immediately, they
will feel no residual heator dampness.

The lever on the righthand armrest controls
chair height effortlessly,
even while the user isseated. That’s all theoperation the M4 chairrequires.

Concept: the “absorbent chair”

Supporting free seating

Customers had complained about damp heat in chairs after sitting
for long periods. In order to solve this, we devised the air slit sheet,
which improves airflow and disperses heat. We also cut more open
space in the chair back and used a highly air-permeable fabric. Thiscurtails rising temperatures and increases the speed of evaporation
after the user stands up.

The height control levers for most chairs are located under thechair seat. We found this inconvenient, and wondered if there wasan easier way, so we installed a one-touch adjusting lever near thearmrest. The force required for the locking mechanism is always
perfect, since it senses the user’s body weight. Great for free seating
arrangements, when chair users change regularly; this ease ofadjustment is much appreciated.

Providing new value fora new work style
Above all else,
safetyThinking about a flat officeenvironment

When creating furniture, the most important thing to keep in mind
is safety. When accidents occur, such as shelves collapsing or people
falling over after sitting on chair armrests, there is some danger of lossof life. So that customers can use our furniture safely, we conduct
strict tests incorporating all kinds of unexpected uses of our products.

Curiously, office chairs are the number 1 area where discrepancies
are sensed in the workplace. Chairs need to be competitively priced
so that everyone (not only company directors!) can enjoy the use of
comfortable, highly functional chairs. Simplifying design and using
fewer materials can reduce costs. We successfully achieved our target
retail price without harming functionality.

For the chair back, in
addition to sitting comfort
and degree of force, we
also considered safety
factors, such as clothing
becoming snagged. We
eventually decided on a
combination of slit shelland covering.

A “flat” company
climate facilitatescommunication andimproves teamwork,
and is considered
generally desirable.

* KOKUYO Furniture conducted
a n o n l i n e O ff i c e E n v i ro n m e n t
Awareness Survey in August 2010.
The 500 respondents included
recent company employees (with
3 years or less experience) andmanagement staff working at thesection manager level or higher.

Maintaining our position as acompany of choice

What sort of chair do you use in the office? I think very few people could answer this question in detail if asked.
We only notice our chairs if we are dissatisfied, or if our chair is replaced, or if there is some change in comfort.
Usually we pay no attention to them at all, so a chair that is naturally comfortable is ideal.
However, we were horrified to realize that many users simply resign themselves to endure an uncomfortablechair, or who do not realize that an unsuitable chair is the cause of their fatigue.
Chairs are for supporting people. In order to achieve an environment where everyone can work in comfort, weneed to listen to comments from our customers, we need to consider matters from the customer’s perspective,
and we need to provide new value even when customers do not realize it. We need to ask: What sorts of concepts
should be fundamental to serving our customers? In future, KOKUYO will continue to pursue its goal: creatingproducts that exceed customer expectations.

M4 website
http://www.kokuyo-furniture.co.jp/products/office/m4/ (Japanese only)

KOKUYO GROUP CSR REPORT 201110

Local Communities(from left)

Koji Kida
Supervisor
Environmental Management Office
TANEYA CO., LTD.

Kazunori Sugiyama
Senior Coordinator,
Planning Team,
Environmental Promotion Group
Home Appliances Company
Panasonic Corporation

Toshihiro Ota
Environmental Promotion GroupKOKUYO Product Shiga Co., Ltd.

Photo taken in front of the Lake Biwa
diorama at Panasonic Home Appliances.

Forming an integral part of a
local community: promoting useof reeds to protect Lake Biwa

May
The season of new growth
Reeds grow around 1 meterhigh.

A fresh angle: utilizing reeds to protect Lake Biwa
KOKUYO Product Shiga (KPS), which manufactures paper products such as notebooks, is one of the
KOKUYO Group’s major manufacturing facilities. Situated close to bustling Lake Biwa, which supports humanlife and is home to many other living creatures, the company has been proactive in undertaking environmental
conservation. Principal among these has been the utilization of reeds. Not only do they absorb carbon dioxide,
but reeds also function to purify water by absorbing nitrogen and phosphorus, helping to make Lake Biwa a
suitable home for countless living creatures. In the past, reeds were widely used for reed screens, thatch roofing,
and making fences, but as lifestyles have changed, these practical uses have been lost and unharvested reed
fields have grown wild. In order to promote the use of these reeds and to promote wider knowledge of the current
situation, KOKUYO launched the ReEDEN Project from November 2007. We believed that as a local company
involved in manufacture of paper products, we have a responsibility to play a central role in promoting theutilization of reeds, which have started to see more widespread use recently.
The product lineup in our stationery series utilizing reeds
has gradually increased, and in June 2010, we released the
ReEDEN colours series, aimed mainly at students. These
products, which were developed principally by our female
employees, not only incorporate reed pulp but also feature
10 standard cover colors and a spine cloth for written
annotations. We have worked hard to ensure these are easy
to differentiate for various purposes, such as for different
school subjects, classes, or drills. These notebooks also carry
our hopes that the world will come to know more about thepotential of reeds. Students using these notebooks seem tolike them; they each have favorite colors, and they like thatthese notebooks are eco-friendly.
The covers of the ReEDEN colours range haveplayful names such as Kiwi and Flamingo

ReEDEN colours website
http://www.kokuyo-st.co.jp/stationery/reedencolours/ (Japanese only)

11

KOKUYO GROUP CSR REPORT 2011

July
Bathed in summer sunlight,
the reeds grow to 3 meters
or higher.

March
As fall arrives, the reeds
start to wither. Reeds are
harvested between December
and March.

Meeting new challenges with a
network of friends
The Environmental Promotion Group at KOKUYO Product Shiga
acts as the head office, calling upon businesses, organizations, andindividuals in Shiga Prefecture and nearby to form the Network toProtect Lake Biwa with the Reed, which includes 47 corporate members
and 40 individual members. Membership numbers have more thandoubled in the past year.
In addition to publishinga Network newsletterand conducting regular
activities such as reed
harvesting, the Network
has also launched
its own independent
initiatives to improve thesituation.

Network members involved in reed harvesting (February 2011, Lake Nishi-no-ko)

The Network newsletter, which discusses
environmental issues, is published regularly.

One such initiative is Reed Packaged Baumkuchen, a joint initiativeof Panasonic Home Appliances (Panasonic HA), TANEYA, and KOKUYO
Product Shiga (KPS). Panasonic HA is a subsidiary of the PanasonicGroup, one of Japan’s leading environmentally engaged corporations,and it has a factory in Kusatsu, Shiga Prefecture that manufactures air
conditioners, refrigerators, and other appliances. This factory also runs
training sessions, which are visited each year by more than 8,000 clientsfrom electrical store and building contractors.
Panasonic HA had devised a scheme to give each training session
participant a baumkuchen cake made by local company TANEYA andwrapped in reed packaging made by KPS, together with a message card
about Lake Biwa. When Panasonic HA mentioned this to Toshihiro Ota
at KPS, Ota proposed some possible designs for the packaging and themessage card.
Through the efforts of partners such as TANEYA, the Reed Packaged
Baumkuchen was brought to completion, drawing praise even from
Panasonic HA sales staffs, who have suggested they would like to see
the concept spread further. From spring 2011, the plan is to distributethese cakes to visitors to the Panasonic product training sessions. The
next challenge for the 3 companies is to develop a reed-manufactured
carry bag for the Reed Packaged Baumkuchen.

EcoBag utilizing reeds

The reed packaging also features a reed-inspired design andincludes a message card expressing concern for Lake Biwa.

In order to reduce reliance on paper bags for carrying catalogs and samples etc.
when sales staffs travel outside the office, KOKUYO S&T came up with the cotton
EcoBag. As one part of the EcoSuke campaign to raise the environmental awarenessof employees, these bags were designed and completed by employees who publicallyapplied for the task. The EcoBag was born from our desire to utilize an environmentallyfriendly material, with reed-based fabric used for the unbleached cloth sections.
Threads made of reeds produced in Shiga Prefecture were woven crosswise into thebag.
Since this bag’s design also makes it great for carrying documents, it is actively
used not only by sales staff, but also by many other employees for carrying papers,
laptop computers etc. around for company meetings. Utilization of reeds and concern
for the environment is spreading among our employees nationwide.

KOKUYO Product Shiga website
http://www.kokuyo-shiga.co.jp/ (Japanese only)

KOKUYO GROUP CSR REPORT 201112

Environmental Protection

Members participating inmonitoring survey

The Yui no Mori Project enters its
fifth year. Understanding thedifficulties of forestry conservation.
The Yui no Mori Project continues
to expand
Launched in 2006 in the Shimanto area of Kochi Prefecture, the
KOKUYO Shimanto Yui no Mori Project entered its fifth year in 2010.
The aim of the Yui no Mori Project was the rejuvenation of devastatedplantation forests and the stimulation of local community efforts toprotect plantation forest areas. With the support of a great many people,
these efforts have widened considerably. Where the initial targeted area
for the Project was only 100 hectares, this target area had expanded to2,000 hectares by 2010, with the total thinned area expanding to 444（No. of products）

Thinned timbermaterials *1

Quantity
absorbed *2*3（Hectares）

Total area
thinned（Hectares）

Target area
*4

*1 No. of products of thinned timber: Products using timber thinned from Yui no Mori
*2 Quantity absorbed: Quantity of CO2 absorbed by Yui no Mori
*3 The 2010 figure is from July 2011.
*4 Target area: Total area certified by FSC

Yui no Mori website
http://www.kokuyo.co.jp/ecology/yui/ (Japanese only)

13

KOKUYO GROUP CSR REPORT 2011

Japanese cypress damaged
by feeding deerhectares. A formal letter from Kochi Prefectural authorities has certified
that 3,526 tons of CO2 have been absorbed. Effective use of thinned
timber materials is also well underway, with the Yui no Mori brandlaunched by the KOKUYO Group now featuring 82 product items.

Recognizing once more the difficultyof confronting nature
Making the results of periodic timber thinning more visible is essential
to forestry conservation efforts. In order to monitor the outcomes ofthese activities over the long term, a once-per-year monitoring survey
is jointly conducted by the taisho Forestry cooperative, Shimanto HighSchool, and University of Tsukuba.
In October 2010, the fourth such monitoring survey was conducted.
One aspect of the vegetation survey was measuring the extent to which
forest regeneration had progressed due to increased sunlight penetrating
the forest after thinning of timber. In the 2 areas where the forest had
undergone thinning in the past, both the height and diversity of vegetation
were measured and compared to the data from the previous year’s survey.
In both areas, it was observed that diversity of vegetation had
decreased (from 81 to 53 species in one area, and from 48 to 37 species
in the other). Local residents have suggested that at Yui no Mori, feeding
deer are responsible for this reduction, which is becoming a serious
nationwide problem for Japan. Deer feeding on their preferred plant
species cause this reduction of vegetation, which we understand to be aserious cause for concern for the ecosystem.
This monitoring survey was an opportunity to really experience thedifficulties of forest rejuvenation and the importance of continuing these
forest surveys. We need to consider how best to respond to the damage
caused to this changing environment by feeding deer, and how tocooperate with local residents to discover a solution. Aiming to strike apositive, beneficial balance between the environment and the economy,
we will continue to meet the challenges of the Yui no Mori Project.

Through its Zero Eco-X Mark campaign, KOKUYO
has made many discoveries and has faced many
challenges beyond conventional wisdom and customs.
These experiences have been a source of creativity.
Going forward, the key phrase ‘Eco + Creative’ willcontinue to guide our efforts.

Achieving zero Eco-X
Marks over a 3-year period
Achieved through the efforts of theentire supply chain
Under the Eco-X Mark campaign, any products manufactured by
KOKUYO and found to be not sufficiently environmentally friendly at any
stage of the product life cycle was indicated with an Eco-X Mark in the
General Catalog. KOKUYO’s goal was to reduce these Eco-X Marks tozero within 3 years.
The General Catalog for 2008, when this campaign was launched,initially established 3 environmental standards: Manufacture, Use, andDisposal. After further review, the 2009 Catalog added another standard(Transport) for a total of 4 stages for environmental consideration in
the product life cycle. Due to the amendment of these standards,
the number of Eco-X Marked products in the 2009 Catalog actually
increased beyond the previous year. However, each and every productcame under careful scrutiny, and with cooperation and support not only
from KOKUYO Group employees but also from materials suppliers,
affiliated factories, and others, the 2011 General Catalog was completely
free of any products bearing an Eco-X Mark.
Some practical attempts to address the issue in 2010 include
changing the plastic resin used in stationery products such as desk matsand clear plastic cases to a non-phthalate ester plastic, and switching
to non-chloride bleaching for the paper pulp used in bills and tickets
Manufacture

Recycled
materials

Alternative
Forestmaterials preservation

Distribution

Resourcesaving
designManufacture

Distribution

Disposal

Usage

Ecopackaging

Ecoshipping

Long life

Usage

Disposal

EnergyVOC
conservation measures

Recycling

Unified standards for furniture and stationery.
Any product failing to meet any of the 4
standards (including the new Transport category)is indicated with an Eco-X Mark.

Our campaign was launched at the Eco-Products Convention

Winning the Eco Mark Award 2010, Silver Prizeetc. For furniture products, we switched the adhesive used to fasten
melamine veneer to wooden tabletops in order to facilitate detachment,
and we have also actively promoted re-use of carry bags for our
products.
KOKUYO Group companies have also been making their own
independent efforts toward the Eco-X Mark Zero campaign. Acclaimed
for its extensive work in broadening the market for Eco Mark products,
KOKUYO S&T was awarded a Silver Prize at the 2010 Eco Mark Award
held by the Japan Environment Association.
Eco-X Mark campaign website
http://www.kokuyo.co.jp/ecology/ecox/ (Japanese only)

KOKUYO GROUP CSR REPORT 201114

Environmental Protection(from left)

Yoshimasa Kato

Maiko Fukuda

Midori SakabeTomonari Iinuma

Division Manager
Product Development Division,
01 Product Department
KOKUYO FURNITURE Co., Ltd.

Designer,
RDI Center
KOKUYO Co., Ltd.

Manager
Main MD Division,
ECO Business TCM Task
KOKUYO FURNITURE Co., Ltd.

Section Manager,
RDI Center
KOKUYO Co., Ltd.

The ongoing evolution in balancing
manufacturing with ecology:
Eco LiveOffice Shinagawa

Reduction of CO2

Estimate atprevious office

Eco evolution:
towards the zero-energy office
Reducing CO2 through local consumption of
locally produced power
Eco LiveOffice is an open-to-the-public experimental office that enables KOKUYO to attempt
various kinds of environmental initiatives. Constructed around the theme ‘Eco + Creative,’ it aims to
reduce CO2 emissions while raising the quality and speed of manufacturing.
One initiative for reducing CO2 emissions is establishing an eco infrastructure using solar power.
A system enabling direct current storage and supply of green energy* produced by solar panels wascompleted in November 2011, and the experimental phase has commenced. Technology developed
jointly with TOHOKU University demonstrates less loss than conventional systems when converting
to alternating current, making this an efficient system. We have succeeded in ensuring that workers
use almost entirely green energy at their desks during sunny daylight hours.
However, solar power cannot be generated on rainy days or during the night. Also, the quantityof sunlight varies seasonally, which affects power generation. We are aiming to convert at least 50%
of our electrical consumption to green energy over the next year by improving our storage batteries
and systems, for a start.
We are also constantly moving forward with many other eco-infrastructure initiatives, such as
the chair with air-conditioning functions we created through joint development with TOKYO GAS
and Kogakuin University.
Office work is closely connected with furniture such as desks and chairs. Our intent is to firmly
link furniture and eco-infrastructure, and to continue to produce office furniture helping workers tocontribute to eco-friendliness simply through its use.
*Green energy: The generation of energy using solar power or wind power, such that it burdens the environment less.
Also called natural energy.

15

KOKUYO GROUP CSR REPORT 2011

Eco LiveOffice has achieved an overall 46%
reduction in CO 2 (compared to the previous
office). We are continuing to work towards ourgoal of zero net energy consumption.

This graph is a visual depiction of energy
consumption at a desk for each hour. Blue
represents “green” energy and red represents
normal electrical power. This makes it easy to
see at a glance the quantity and type of power
used.

This chair incorporates some cooling functions.
There is an air outlet built into the armrest, andthe chair seat also allows air to flow, creating a
cooling effect.
Shuichiro Tabata
Component Development Department, ProductDevelopment Division
KOKUYO FURNITURE Co., Ltd.

Raising employee eco-awareness,promoting eco-activities,& wider implementation
EcoPiyo is a system for visualizing the CO2 reduction by listing the
eco-activities undertaken in the office by employees in itemized form.
So that many other workplaces can utilize this system, we released
it for sale from November 2010. In order to release it as a productfor sale, we improved its visualization graph functions and added an
employee eco-awareness survey function. The itemized format can be
freely customized to match the particular eco-activities of the company
using it; for instance adding items such as “Cleaning up the nearby
neighborhood” if appropriate.
Even if a company is making serious efforts to reduce CO 2
emissions, it will never obtain the best outcomes without the cooperation

Introducing the new EcoPiyo
system has made it easier
to measure the results ofeco work styles, such as
employees using the stairs or
working using natural light.

of its employees. Our eventual goal is to promote eco work-styles
through technical solutions such as solar power generation and EcoPiyo
in combination with employees’ own independent methods, in order toreduce CO2 emissions to zero and achieve a zero energy office.

The evolution of “Creative”
A place for discussion:
creative ideas for Eco LiveOffice

Yutaro Yatsuzuka
Space Solutions Department
Solutions Planning Division
KOKUYO FURNITURE Co., Ltd.

From the “Future of Eco + Creative” session emerged the
key phrase “Discarding the past opens up the future.”

KOKUYO has moved on from the initial concept – “working not
only with the Eco LiveOffice employees but also various people acrossdifferent fields to discover future-oriented solutions” – to pro-actively
undertake joint business activities with external partners. Particularly
important is creating a place for discussion, for sharing our respective
approaches and issues, and for stimulating each other. In September
2010, we held a discussion session titled “Future of Eco + Creative”
on the theme “Ideal Work Styles for the Society of the Future,” whereexperts from various different fields gathered at Eco LiveOffice fordebate and discussion. Many ideas and keywords were raised, outliningsome creative approaches to the common goal of sustainable corporate
management.
Since September, we have held various other sessions on different
themes; in future, we plan to challenge ourselves with the theme “EcoMentality.” We believe that these sessions create ongoing opportunities
for members (both inside and outside the company) to generate andexchange ideas.

Contributing to creativity with newconcepts for office furniture
By arranging seating in a circular fashion, HARMONii, KOKUYO’s
new desk system developing the concept of “harmony,” simultaneously
creates both space for concentration and space for dialogue. Sitting in
the outward-facing seats facilitates concentration, as adjacent seats
are outside one’s field of vision. Utilizing the natural properties of thecircle, since adjacent seats are positioned diagonally back, they do not
fall within one’s field of vision. On the other hand, sitting at the inwardfacing seats enables workers to undertake discussion or group tasks
at the central worktable. We are aiming to release this system for salefrom 2011 as a workstation that strikes a harmonious balance between
concentration and communication.
Also, through energy-conserving designs such as chairs that turnon desk lights when someone sits down and turn off the light when theyleave their seat, we aim to achieve harmony between people and theenvironment.
The HARMONii system
was exhibited at theInter national Office
Furniture Fair held inGermany in October
2010, where its
unconventional designand concept attracted
a great deal of praise.

The Eco Worker Perspective
Since I started working at Eco LiveOffice, I’ve become actively involved in eco-activities. I’ve really felt how theenvironment can change your awareness. I’ve heard visitors to the office complain they don’t have the budget toestablish an eco environment. But you can create eco environments without setting up large-scale infrastructure
projects. You can even just change your office layout to allow more natural sunlight to enter. If you can raise
productivity by re-assessing work styles, using creative materials and so on, you can cut down on working hours
and reduce your CO2 footprint.
We are certainly committed to facing the many challenges ahead by expanding the use of this keyword “Eco”
and continuing to provide our clients with pleasant office environments.

Eco LiveOffice Shinagawa website
http://www.kokuyo.co.jp/ecology/ecoofﬁce/ (Japanese only)

KOKUYO GROUP CSR REPORT 201116

Business Activities

Compliance discussion convened
by sales department

Creating a workplacefacilitating mutual
discussion of realizations
and troubles

Continued growthof company
Improving ES/CS
Improving CSR assessment

Remedial
actions
Selfassessment

Stakeholder assessment

Inspection

Implementation/actions

PDCA for carrying out social
responsibilities
At the KOKUYO Group, in order to practice sound corporate
management and transparency to earn the trust and goodwill of oursociety, we have worked hard to implement a Plan, Do, Check, Act(PDCA) cycle for risk management and compliance. Firmly rooted in theunchanging principles of our Code of Conduct, our CSR Charter, and ourCorporate Philosophy, we create opportunities for discussion to fosterand reform the awareness of our employees. These discussions serve
as a point of departure; across all our business divisions and all our
departments, we seek to implement practical, concrete actions, confirm
the efficacy of these actions, and repeat the cycle of improvement.

Stimulating communication in theworkplace
In every single department, we are working hard to create aworkplace climate facilitating the everyday discussion of new realizations
and troubles, in order to minimize the risk involved in our work tasks.
Since 2008, various mishaps and accidents have occurred even within
the KOKUYO Group. Looking back, we can see that these problems
each had turning points; if only someone had noticed at the time, if only
someone nearby had taken timely and appropriate action, we would
have been able to nip the problem in the bud. Through workplace
discussion, we can work to ensure adequate communication and createa workplace climate preventing these mishaps before they occur.

17

KOKUYO GROUP CSR REPORT 2011

Policy breakdown
Yearly policy
Management Creed
Gratuitous BusinessSocialadded value

Risk management

ComplianceCorporate Philosophy“Contributing to Society by Providing
Superior Products”
Unchanging
principles
KOKUYO GroupCSR Charter

Social challenge
CSR policy

Fosterawareness
Reformawareness

KOKUYO Group
Code of Conduct

One initiative that we have started is the Compliance Discussion
convened by our Legal Affairs Department. Utilizing mock examples
of compliance violations created from the actual tasks undertaken byeach workplace, we conduct mutual discussion and frank exchangeof opinions regarding each party’s problems and realizations under
the current circumstances. From June 2009, each factory and delivery
center, development department, and sales department started
implementing this program; it had spread across the entire company by
October 2010.
As the next step in this program, starting from 2009, Octobereach year (KOKUYO’s founding month) has been designated asCommunication Strengthening Month. In each workplace, discussions
are undertaken based on set themes, and the discoveries thus made(realizations/knowledge) are recorded in a database of accumulated
discoveries. The contents of this database are shared among theentire KOKUYO Group as a mechanism for generating new knowledge,
rules, and proposals for improvements, etc. Even after Communication
Strengthening Month, each workplace has established ongoing
discussions known as Hanawaka Time (derived from the Japanesewords for ‘talking’ and ‘understanding’), with at least 1,000 discussion
sessions having been held so far. During these Hanawaka Time sessions,rather than previously given themes, the discussions tend to coverthemes more relevant to the issues facing these particular workplacesor organizations, such as “Strengthening Office Security” or “Sound
Transaction Relations,” and there are evident signs that these efforts are
becoming increasingly self-motivated.
In future, we aim to ensure that problem-solving initiatives can arise
in a self-motivated fashion in each workplace, so that we can continue
our ongoing activities.

Total Sessions

Total No. of Hanawaka Time Sessions

2nd half 2009

October2009

1st half 2010

January2010

2nd half 2010

July
2010

October December
2010
2010

Top managers and on-site staff actively exchanging opinions
In addition to stimulating workplace communication, exchange-ofopinion sessions are also held between the company’s top executive,
Company President Akihiro Kuroda, and KOKUYO’s regular employees.
These provide opportunities for discussion among employees acrossdifferent organizations and fields. The combined results and outcomesof the daily work of these individual employees form the future of thecompany. What motivates us right now? What are our current concerns?
Why do we work? Why are we working at KOKUYO? What will KOKUYO
be like in future? What do we want to do? These issues and many moreare regularly shared with the Company President in a spirit of serious,
frank, and open discussion.
In 2010, the 5th such meeting was held. Participants talked frankly
about the future of the Group; the set theme was “What sort of work will
you be doing in 10 years?” The operating premise here was that any andevery question for the Company President or doubt arising about thecompany would definitely receive an answer, either on that day or at alater time, and that all content discussed at the meeting would be sharedwith the entire company via the intranet.

Handing down the Corporate Philosophy
At KOKUYO, as an unbroken tradition, we practice the “Corporate Philosophy” and the “Founding Spirit”
handed down from the company’s founder. We believe that these are closely connected with the company’s social
responsibilities. We have published several collections of thoughts from prior managers, as tools for our employees
to understand these ideas more deeply, and we introduce the essence of these teachings via the company intranet.
Starting from their initial induction, KOKUYO Group employees attend training sessions using these publications as
texts, and the company newsletter has also established a column for regularly discussion of the Corporate Philosophy.
The founder of KOKUYO, Zentaro Kuroda, stated that “Business is to be conducted for the sake of society. Profit
is the compensation that society gives back.” We continue to hold true to these words.

KOKUYO GROUP CSR REPORT 201118

Human Rights(from left)

Haruka Kawaminami

Yuki Akagi

Keita Ise

Hirofumi Nagata

Leader, Human Resources
Development Division
KOKUYO Co., Ltd.

Diversity Promotion Leader
Human Resources
Development Division
KOKUYO Co., Ltd.

Manager, RDI Center
KOKUYO Co., Ltd.

Human Resources Development
Division
KOKUYO Co., Ltd.

Efforts to promote diversity
Cross-Industry Papas’ Meetings:
Talking about childcare
The movement to promote greater male participation in childcare is gaining wider ground in
our society, and striking a balance between working and raising children is now an issue shared
between men and women.
In the past, the KOKUYO Group has repeatedly established spaces for female employees toexchange information. In 2010, KOKUYO Women’s Assembly events were held a total of 4 times
between Tokyo and Osaka. Panelists include women leaders and managers across the KOKUYOGroup, and topics discussed include childbirth, childcare, career planning, and more.
On the other hand, there have not been as many opportunities for male employees to share
information about raising children. Thus, KOKUYO decided to institute “Papas’ Meetings” startingfrom 2008. Initially, these were only open to KOKUYO Group employees, but from 2009 thesehave been held in conjunction with various different industries, in order to further the exchange of
opinions and explore themes of diversity and work/life balance.
At the 2010 Cross-Industry Papas’ Meeting, participants attended a seminar conducted byrepresentatives of an NPO developing childcare support, enjoyed role-playing sessions on various
themes, exchanged their opinions, and more. Participants commented that they learned how to be
involved in childcare while working, that prior planning is necessary for finishing work tasks in orderto participate in their child’s events, and that cultivating daily workplace relationships to gain theunderstanding of workmates about these matters is very important. Interesting, some participantscommented that raising children can impart tips for improving work tasks.
Keita Ise is responsible for Childrens’ Future Project, which proposes the creation of spaces
centered on preschools and kindergartens; listening to the opinions of others at the Papas’ Meetings
made him realize some new perspectives. Using office furniture, play equipment, and the layout ofthese to produce certain behaviors can grant fresh opportunities to create spaces for cultivating
children’s creativity. In order to be actively involved in raising children, increasing productivity
and work/life balance are very important. By supporting a work/life balance that enhances thequality of both work and life, childcare can help to promote the creation of more diverse workplaceenvironments.

19

KOKUYO GROUP CSR REPORT 2011

A Papas’ Meeting. Participants discussing work/lifebalance included company employees as well as
various other individuals recruited via the website
operated by NIFTY Corporation.
Participating in themeeting helped me
have more fun spendingtime with my child. (Ise)T h e K O K U Y O Wo m e n ' s A s s e m b l y. P a r t i c i p a n t scommented that the event helped alleviate anxieties overchildcare and offered tips for career planning, among
other remarks.

HR cultivation: playing a full role within 3 years of joining the company
In order to train new recruits in the necessary work skills, KOKUYO
has been conducting its Youth Cultivation Program since 2005. In
addition to a support program including a full month’s training during
induction, regular follow-up training sessions, and follow-up interviews,
KOKUYO has also introduced a Tutor System where for 3 years after
joining the company, junior employees are given practical instruction andextra training by senior employees in their assigned workplace. Tutors
not only offer advice to the young employees, they also help them growthrough practical duties in the workplace.
The results are gradually becoming evident; the rate of junioremployees staying with the company has been increasing.
Additionally, as a result of efforts over the mid-term, the humanresources cultivated by these tutors are now themselves in the positionof providing leadership to younger employees. This motivates them toconsider ways they can become involved in the future, based on issues

that they faced in the past.
In future, we hope that this program evolves to develop further
content as appropriate for the characteristics of the department inquestion.

When the workload increased
in my second year, the advice
I received about how to deal
with it really helped me.
(Nagata)

Each year, programs
are matched to theemployee’s own growth.

Independent business support for persons with disabilities*1
KOKUYO commenced the hiring of persons with disabilities in 1940,
36 years before this became obligatory in Japan. Ever since, we havestriven to create workplaces where all workers can work together equally,
and where excellent workers are selected for leadership positions
regardless of any disabilities. KOKUYO has remained active in its efforts
to promote recruitment of people with disabilities. At present, KOKUYO
efforts center on 2 special subsidiary companies: KOKUYO K Heart Co.,
Ltd. (established 2003) and Heartland Co., Ltd. (established 2006). Basedon the guiding statement, “We share in mutual respect with persons
with disabilities, and we will play our part toward supporting their
independence and social contribution,” KOKUYO promotes the creationof environments facilitating employment of people with disabilities. As ofJanuary 2011, KOKUYO’s employment rate of persons with disabilities*2
stands at 2.16%.
In addition to tasks such as offset printing, bookbinding, and sticker
printing, by embarking on new types of work such as testing for thepresence of harmful chemicals in KOKUYO Group stationery products,
KOKUYO K Heart has achieved its highest sales figures since the

KOKUYO K Heart

Heartland

company’s founding. KOKUYO K Heart itself is successfully operating at
a profit. Its initiatives up to this point have also been widely praised, andin March 2010 it gained official recognition as an outstanding employer
of persons with disabilities. In future, KOKUYO intends to proceedwith the hiring of persons with disabilities, and to ensure their ongoingprofitable contributions to the KOKUYO Group at a high level.
Meanwhile, at Heartland, established as a place to grant
employment to persons with intellectual and mental disabilities, thefocus is on agriculture. This is the first attempt at agricultural work
across the KOKUYO Group, and it involves the production and sales ofsalad spinach and other vegetables using hydroponics, without using
agricultural chemicals. Employees with disabilities are involved in every
aspect of the work: planting seeds, raising seedlings, settled planting,cultivation, harvesting, packing boxes, right through to shipping.
Heartland has garnered considerable attention as a practical space
where persons with disabilities are thoroughly involved in agriculturalwork, and the facility hosts many visitors and study tours each day.

*1 At the KOKUYO Group, we prefer to use the term “person with disability” rather than “disabled person.”*2 This corresponds to the proportion of persons with disabilities employed as regular employees or regularly employed part-time or casual employees of
KOKUYO Co., Ltd or its consolidated subsidiaries within Japan.

Continued development &growth for the company

Ultimately, we are aiming to create an environment where employees continue working even when faced withvarious life events, and where all employees can utilizes their diverse capabilities and unique sense of values.
At the KOKUYO Group, our efforts to engage with this kind of diversity are positioned as a management
strategy. Although we have established a system recognizing childcare, in future we expect that problems arisingfrom care-giving duties will greatly increase. We hope to continue undertaking our activities while still engaging
with social needs.
Also, moving forward, the KOKUYO Group will be promoting further globalization. We will recognize the mutual
capabilities and cultures of diverse human resources, including non-Japanese staff, so that we can foster a climate
enabling these to be fully utilized, and we will work to ensure that not only our employees but also our managers
are aware of the reality of diversity.

KOKUYO GROUP CSR REPORT 201120

Principal Data

Corporate activities

Local Communities

Distribution of shareholdings

Individuals
and others

Totals & Breakdown of Social
Contribution

Financial institutions
andsecurities companies

Owned
by KOKUYO

Other independent
activities

instances

SharesOverseascompanies etc.

Customers

Other corporate
entities

Human Rights

Cooperation
with events &exhibitions

Shifts in No. of Inquiries(No. inquiries)

External
seminars etc.

Training
sessions& lectures(year)

Study trips(factories & showrooms)

Stationery-related
Other

Furniture-related

Environmental Protection

Number of employees taking
childcare leave

Changes in CO2 emission volumes

Quantity of waste products recycledcompared with final disposal quantity(employee numbers)(year)(year)(year)

Male

Amount for 6 non-consolidated subsidiaries

Female* From 2010, the CO 2 emission variables and the scope of
calculation have changed. If CO2 emission variables and scope of
calculation are considered at 2009-equivalent levels, this would
mean 26,019tons of CO2.

Employment rate of persons
with disabilities*

Final disposal quantity

Quantity recycled* From 2010, this includes the performance of 6 non-consolidated
subsidiary companies (Quantity recycled: 111t; Final disposal quantity 8t)

Changes in Eco-X Mark rates: Furniture(Employment rate)

Legally stipulated employment rate 1.8%

CatalogCatalogCatalogCatalogCatalogCatalog

Changes in Eco-X Mark rates: Stationery(year)* This corresponds to the proportion of persons with disabilities
employed as regular employees or regularly employed part-time orcasual employees of KOKUYO Co., Ltd or its consolidated subsidiaries
within Japan.

CatalogCatalog

The Eco-X Mark rate for furniture products is expressed as a proportion of the products listed in the General Catalog,
excluding low partitions, room dividers, store appliances & fittings, etc.
Changes are accurate at time of publication of General Catalog for each year.
(Each respective Catalog lists the performance of the previous year.)
For more information on reporting periods and reporting organizations, overview of business services, the KOKUYO Group Environmental Vision, the state of compliance with environmentrelated legal requirements, and other significant data relating to KOKUYO’s environmental burden, including estimated standards for indicators, please refer to the website listed below.
http://www.kokuyo.co.jp/com/csr/data (Japanese only)

21

KOKUYO GROUP CSR REPORT 2011

KOKUYO Group Overview(as of 31 December 2010)

The KOKUYO Group is engaged in stationery and officestationery-related business, as well as furniture-related
business such as office furniture, public furnishings, andconstruction of office spaces.

Established:

October 2, 1905

Capital:15.8 billion yen

Representative:

Company President Akihiro Kuroda

Net Sales (consolidated)(Units: 100 million yen)

Head office location: 6-1-1 Oimazato-minami, Higashinari-ku,
Osaka City, Osaka 537-8686 Japan
No. of consolidated subsidiaries:

22(year)

No. of regular employees (consolidated): 4,991
Net Sales by Business Segment (consolidated)
Stationery

Store-related(148.9 billion yen)

(12.4 billion yen)

Net Salesbillion yen

Furniture(100.4 billion yen)

KOKUYO GROUP CSR REPORT 201122