K O K U Y O G R O U P C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y R E P O R T

Furniture

Stationery

2008

Becoming a Company That Contributes to a Sustainable Society in Many Ways

KOKUYO Co., Ltd. was established in 1905 as Kuroda
Hyoshiten, a maker of covers for Japanese-paper notebooks. The founder, Zentaro Kuroda, launched his businessready to take on any troublesome or time-consuming tasks.
In the years that followed, Kuroda’s company issued asteady stream of products for everyday use, contributing to
the economic as well as social development of Japan.
In the postwar era, the company expanded into stationery in general, office furniture and store fittings, quickly
growing into Japan’s largest purveyor of office supplies.
Today, 103 years after its foundation, KOKUYO Co., Ltd.
continues to follow the spirit and philosophy of its founder.
By forging ever stronger bonds of trust with our many
stakeholders, we are pursuing growth that is sustainable
for both the company and society.

●Corporate Outline (as of December 31, 2007)

Established: October 2,1905

Company name: KOKUYO Co., Ltd.

Capital: ¥15.8 billion

President: Akihiro Kuroda

No. of employees (Consolidated): 5,037

Head office: 6-1-1 Oimazato-Minami, Higashinari-ku, Osaka 537-8686, Japan

No. of consolidated Subsidiaries: 24●Organizational Structure
Holding company

Main group companies (consolidated companies)

KOKUYO Co., Ltd.

KOKUYO S&T Co., Ltd.

KOKUYO Supply Logistics Co., Ltd.

KOKUYO Furniture Co., Ltd.

KOKUYO Vietnam Co., Ltd.

KOKUYO Office System Co., Ltd.

KOKUYO Product Shiga Co., Ltd.

KAUNET Co., Ltd.

KOKUYO MVP Co., Ltd.

KOKUYO Marketing Co., Ltd.

KOKUYO-IK (Thailand) Co., Ltd.

KOKUYO Chyugoku Sales Co., Ltd.

Tokyo OSL Co., Ltd.

KOKUYO Kyushu Sales Co., Ltd.

Kinki OSL Co., Ltd.

KOKUYO Engineering & Technology Co., Ltd.

KTL Co., Ltd.

Companies directly managed
by the holding company
KOKUYO Finance Co., Ltd.
KOKUYO K Heart Co., Ltd.
Forest Co., Ltd.

KOKUYO Store Creation Co., Ltd.
KOKUYO (Malaysia) Sdn. Bhd.
KOKUYO International Co., Ltd.
ACTUS Co., Ltd.
KOKUYO Business Service Co., Ltd.
KOKUYO Logitem Co., Ltd.
Net KOKUYO Co., Ltd.
KOKUYO International Asia Co., Ltd.
Non-consolidated

KOKUYO Interior Technology (Shanghai) Co., Ltd.

Scope of this report

KOKUYO Design Consultants (Shanghai) Co.,Ltd.
KOKUYO Trading (Shanghai) Co., Ltd.

■Sales by Business Segment■Net Sales■Ordinary Income(¥100 million)(¥100 million)

4,000

200

3,395

3,500

Furniture(¥107.9 billion) Stationery
42.7% (¥127.1 billion)
50.3%

3,000
2,500

2,734

2,835

3,039

155
2,528

2,000

150

125
100

1,500
1,000

50

500

Store Related(¥17.7 billion) 7.0%

01 KOKUYO Group CSR Report 2008

118

88

0

14
Mar.’04 Mar.’05 Mar.’06 Mar.’07 Dec.’07 (fiscal year)

0Mar.’04 Mar.’05 Mar.’06 Mar.’07 Dec.’07 (fiscal year)* Due to the change in our fiscal year-end, Dec.’07 figures are based on our settlement for an irregular nine-month period from April 1 to December 31, 2007.

Contents

Message to Our Readers

1
2
3

Corporate Overview
Editorial Policy/Table of Contents
Executive Dialogue
Toward a Front-running Environmental Company〜Promoting step-ahead initiatives〜

Our approach and editorial policy in publishing
KOKUYO Group CSR Report 2008

Feature Section
Tackling global warming
7 Initiatives at the factory
Switching fuels and implementing new designs helps reduce environmental load while boosting efficiency

In editing KOKUYO Group CSR Report 2008, we strove to place thegreatest emphasis on efforts to tackle global warming and measures to

9Initiatives for logistics operations
Contributing to an environmentally friendly society by eliminating waste and boosting efficiency

11 Initiatives at the officepromote environmentally friendly products. We believe that these two coreenvironmental undertakings are the most important ways for KOKUYO to fulfill
its responsibilities to the communities in which it does business.

Retooled equipment and heightened employee awareness led to a 6.2% reduction in CO2 emissions over two years

12 Maintaining carbon sinks, Part I
Contributing to the preservation of reed marshes with a “virtuous cycle” of reaping, cultivation and use

13 Maintaining carbon sinks, Part II
Restoring the power of forests while creating economic value.
Managing forests in partnership with the community.

To decide which of KOKUYO’s CSR activities would deserve the mostattention, we examined one external factor and one internal factor. The
external factor was the degree of impact on our stakeholders. The internal

CSR Management
15 The KOKUYO Group and CSR
16 Corporate Governance and Compliancefactor was the degree of impact on KOKUYO.
In September 2007, we used the company’s intranet to conduct an
opinion survey and also held interviews at major KOKUYO group companies.
At the same time, we asked CSR sector personnel in other companies toshare their views with us. In this way we listened to the views of 60
stakeholders.
Having gathered this wide range of perspectives, our CSR promotion andother sectors held extensive discussions, taking into additional consideration
the degree of impact on the KOKUYO Group. After discussing these results

Environmental Report
17
19
21
22

Relationship Between Business Activities and the Environment
Environmental Vision/Medium- to Long-term Environmental Action Plans and Results
Measures against Global Warming
Dealing with Hazardous Substances/Green Procurement

Social Responsibility Report
23 Responsibilities to Shareholders
24 Contributions to Society
25 Promoting Diversity
Data
26 CSR Accounting

with KOKUYO’s senior management, we narrowed our selection to the twothemes described above.
In planning KOKUYO Group CSR Report 2008, we used interview andopening feature articles in the first half of the report to convey anunderstanding of KOKUYO’s attitude and activities regarding theseenvironmental issues. We also added the topic “Promoting Diversity,” toprovide a sense of the other issues the KOKUYO Group is working on.

●Change in publication date
Starting in 2008 the KOKUYO Group moved its fiscal year-end from March 31 to December 31. Inline with this change, the publication date for the CSR Report was moved from June to March.
■Scope of the CSR Report
Organizations covered:
24 companies, including KOKUYO Co., Ltd., its consolidated subsidiaries and its nonconsolidated affiliated companies(See “Organizational Structure” on page 1.)
Period: The data consist of results from January to December 2007. Activities include thoseundertaken in 2006 and earlier as well as those in 2007 and 2008.
(The data covering the period from January 1 to March 31, 2007 partially overlap data
published in KOKUYO Group CSR Report 2007.)

KOKUYO Group CSR Report 2008 02

Executive Dialogue

Toward a Front-running
Environmental Company〜Promoting step-ahead initiatives〜

When Ryoichi Yamamoto published Ondanka Jigoku: Dasshutsu no Scenario(“How to Escape the Hell of Global

Warming”), he sounded the alarm that global warming is quickly
accelerating, while at the same time laying out a specific roadmap for avoiding the worst-case scenarios. We invited Dr.
Yamamoto of the University of Tokyo to offer his insights on thesocial responsibilities expected of companies in the age of global warming and what they can do to address environmental
problems.

Prof. Ryoichi Yamamoto
Institute of Industrial Science,
the University of Tokyo

Akihiro Kuroda
President
KOKUYO Co., Ltd.

Ryoichi Yamamoto

Graduated from the Department of Metallurgy, Faculty of Engineering, University of Tokyo, with a doctoral degree in engineering. Areas of specialty include material science,
theory of sustainable product development, and eco-design. In addition to serving as a scientist at the Ministry of Education, Culture, Sports, Science and Technology (MEXT),
Yamamoto has held a long list of illustrious posts, including honorary chairman of the Ecomaterials Forum and chairman of the Institute of Life Cycle Assessment, Japan,
Sustainable Management Forum of Japan, International Green Purchasing Network, Japan Eco-efficiency Forum and the executive committee of the Eco-products Exhibition.

03 KOKUYO Group CSR Report 2008

Executive Dialogue

Toward a Front-running
Environmental Company〜Promoting step-ahead initiatives〜

Raising awareness of environmental issues
company-wide

Kuroda: Last year, being aware of these issues myself, I appealed

secure a stable supply of notebook paper by producing it in Japanto all KOKUYO Group employees for thinking about whatrather than importing it, knocking at the door of a paper company

KOKUYO can do. First of all, we have to reduce our CO2 emis-

to ask them to produce what he wanted. When they finally suc-

Kuroda: Dr. Yamamoto, Last year I had the pleasure of listening tosions, and find ways to curb what we do produce. One of myceeded in developing products he wanted, he bought up all the

you speak at a seminar. I was struck by your description of theambitions is for KOKUYO to declare itself carbon-neutral as soon

defective goods produced at this paper company over the priorfrighteningly rapid pace of global warming, which you illustrated

as possible. But that’s very difficult to accomplish in reality. As aten years. The KOKUYO management philosophy says, “If you

with the example of the shrinking area of sea ice around the North

company that’s been dealing in office supplies for over 100 years,

buy, make and sell with a sincere heart, you will surely win peo-

Pole. You stated that Japan has fallen behind the countries of the

we’ve started activities to tackle CO2 emissions in our own offices.

ple’s trust, and thereby accomplish your life’s work.” I can see thisWest, which are taking active measures to address global warming.

Our employees have deepened their awareness of environmental

principle in action in the career of Zentaro Kuroda.

When your book, Ondanka Jigoku: Dasshutsu no Scenario,

issues, thanks in part to reading your book, and are moving fromwas published in October, I immediately picked up a copy andunderstanding to taking action.

Kuroda: It doesn’t matter if your job is unglamorous or burden-

read it. I distributed copies to all our senior staff members, to raise

Getting back to the company’s origins

some. To fulfill your role in society, you must serve it with whole-

KOKUYO to tackling this problem promptly. Although the environ-

Kuroda: This year KOKUYO celebrates the 103rd anniversary of its

business,” is still alive in the corporate culture of KOKUYO today.

mental load of our business is not very large, your views at thefoundation. Our founder, Zentaro Kuroda, started his business readyseminar and in this book have inspired me to use them as a stimu-

to fill any order, no matter how troublesome it may be or even if it

Yamamoto: Since the 1990s, KOKUYO has been working on thelus for KOKUYO to further promote environmental management.

would be unprofitable to do so. He was determined to “contributedevelopment and proliferation of eco-products. I think this is one

to society” by diligently manufacturing superior products.

expression of your company’s spirit. The CSR approach began toawareness group-wide about global warming and to commit

hearted devotion. This spirit, which Zentaro called “gratuitous

Yamamoto: I used the phrase “Ondanka Jigoku” (the hell of global

The founder was especially particular about product quality

spread in Japan at around the start of the 21st century, when there

warming) in my book title because simply saying “global warming”

and function, and about delivering value. At the time, wacho

was still a tendency to postpone addressing environmental issues.

sounds too soft. I needed to wake people up and make them see(Japanese paper notebooks) contained 100 pages, but thisToday, environmental issues such as global warming and the recy-clearly the seriousness of this crisis. In Japan, a country with noincluded the cover and so forth. He improved their usefulness bycling of resources have become even more pressing and critical.

glaciers or tropical forests, global warming may seem a distantadding more writing pages, so that the number of writing pages

Over the past year or so, major manufacturers and other busi-

prospect. But the situation is worsening much faster than people

would number exactly 100. He then sold this new product with 100

nesses have been revising their environmental management

realize. We may already have crossed into the first circle of hell.

inside pages, at a 5 to 7.5% markup over competitors’ conventional

strategies. Today, we have to make concerted efforts to reduce

For example, it was predicted that the Arctic Ocean would bewacho. At first, nobody was interested. As customers began

our carbon emissions not by 6%, as led by the government, but

completely free of ice in summertime by 2040. But some people

appreciating the difference in quality, however, sales erupted. And

by 80%. Long-term strategies must be introduced and resolutely

say the ice might vanish as early as this summer. It’s been pointed

that experience powered KOKUYO to its high standing today.

implemented to end dependence on fossil fuels and achieve aout that rising temperatures in the Arctic atmosphere are shifting

More to the environmental point, Zentaro Kuroda was also

low-carbon society. Projects like KOKUYO’s Yui no Mori, in which

the course of the jet stream northward, generating high-pressure

inventive in reducing waste. For example, he asked paper millforests are maintained as a sink for absorption of CO2, is one

zones in the Pacific Ocean that may cause fierce summer heatpartners to deliver paper in exactly the dimensions needed, so

example of such a strategy.

waves in Japan. In Antarctica and Greenland as well, the icethat his business could effectively reduce the waste created bysheets have begun to disappear on a large scale. Based on pres-cutting the paper to the required sizes.

ent trends, we could reach what I’ve called the fifth circle of hell by
2050. And that’s no picnic.

Kuroda: We’re now entering the second year of our Yui no Mori
activities. Last year, we began using wood gleaned from periodic

Yamamoto: What impressed me most about Zentaro Kuroda’s

thinning of forests to make stationery, desks and other products,

episode is that, around the time of the First World War, he tried towhich we sell on the KOKUYO Group’s mail-order sales service,
KOKUYO Group CSR Report 2008 04

Kaunet. We’re delighted to have received enthusiastic support

At one of our factories, a plan to convert LP gas to city gas

specialty. For example, our Shinagawa office produces 1,600 tons

from many customers who are concerned about environmental

was thrown into high gear, resulting in dramatic CO2 reductions.

of CO2 every year. We plan to rebuild the building to make cleverissues. We also initiated a program last year in which Kaunet cus-

Senior managers set the direction, awakening ambition in employ-use of solar energy, reducing losses from air conditioning andtomers can donate their user points to Yui no Mori preservationees. Moreover, when we explained our position to customers andhalve that amount to 800 tons. Buying emission rights is one

activities, and already the donations have far exceeded expecta-

business partners, in many cases those parties gained a deeper

option, but we feel we can make our commitment more clearlytions. As you said earlier, environmental awareness has increased

understanding of the environment. We plan to accelerate all of

understood to the customer by achieving a true carbon-neutral

noticeably in the last few years. I can feel it too.

these activities going forward.

office and telling the world about it.

What makes a difference is senior
management setting a good example

that can assess a building’s carbon-neutral status, but inYamamoto: Our “Eco-products 2007” environmental exhibi-

Japan there are not enough such buildings yet. I wish yoution held in Tokyo last December was a great success,every success in your Shinagawa project. What’s important

attracting the largest number of visitors in its history. I real-is that you drop your CO2 emissions to zero, and that you

ized that was at the same time that KOKUYO issued a press“visualize” the system and procedure by which you do so,release about its Eco X (“Non Eco”) mark*. On many news

so that it is easy to understand, and disclose information

broadcasts the two items were reported side by side. You

regularly.

Yamamoto: Overseas there are already inspection services

had a great and ingenious reversal in your thinking and
Kuroda: I agree. The Eco X mark is another example ofstarted displaying this mark in your general catalog besidevisualization in KOKUYO’s environmental activities. We’ve

products that were not yet fully environmentally friendly.

positioned it as an easy-to-understand means of disclosure.
Kuroda: Thank you very much. We got that idea from your

Aiming to be an environment-friendly
company that exceeds expectations

proposition, “A company’s strategy must be visible in theactions of its managers.” Some employees raised loud voices in opposition to the Eco X mark strategy, but I told them,

Yamamoto: These days, whenever I meet corporate man-“Work hard together so that the mark can be removed fromagers, I ask them, “Please, declare war on global warming!”
Individual efforts are important, but the CO2 emissions fromyour product as quickly as possible.”
In fact, it turned out that over half of our stationery products at

Yamamoto: You’ve started an enormously significant process. I

corporate activities are overwhelmingly greater than those fromthat time had to be slapped with the Eco X mark. Worried about

hope you will continue and expand similar initiatives not only inthe private lives of citizens. Managers must display a correct rec-the effects on sales, many employees wanted to postpone using

products but in services as well. That would be even more won-ognition of the current situation, strong rational faculties, and thethe mark until next year. I told them it was out of the question, andderful.

courage to lead with a good example and set directions. I’ve readso they worked feverishly to complete their eco-friendly products

books that say the Japanese have a natural talent for eliminatingover the two months before the start of catalog production. At that

Kuroda: I suspect hurrying delivery more than the customer“strain, waste and variance.” I expect this country’s corporate sec-time, I was surprised and delighted that many of the products that

requires can add unnecessarily to the environmental burden. I

tor to demonstrate that characteristic and marshal its

would have been blackened with the Eco X mark had been madethink we need to look carefully at this kind of question on the lo-

environmental technology to lead the world in tackling the threat ofenvironmentally friendly after their feverish efforts, and the number

gistics side.

global warming.

of Eco X products declined dramatically.

* For more details on the Eco X mark, please see page 6.

05 KOKUYO Group CSR Report 2008

And there is plenty we can do in the office, KOKUYO’s area ofExecutive Dialogue

Toward a Front-running
Environmental Company〜Promoting step-ahead initiatives〜

Kuroda: This year KOKUYO aims to be a “front-running environ-

Promoting environmentally friendly products

mental company.” What we mean by this is not that we will invest

The KOKUYO Declarationhuge sums of money trying to do everything ourselves, but rather
that we will proceed a step ahead with the course we have set forourselves. Having gone to the trouble to make the Eco X markdeclaration and having had a favorable evaluation of it from themarket, we will move resolutely forward, step by step, with our

Any of our products that are not sufficiently environmentally friendly aremarked withproducts marked withenvironmental program. If our employees can harness their knowledge, set ambitious goals and struggle to achieve them promptly, I
see no reason why we cannot move steadily forward to become afront-running environmental company.
Yamamoto: “Front-running environmental company” is a greatslogan. You can see a similar attitude in the moves the United
Kingdom and the EU are making. In the West, they often “go italone,” regardless of what others are doing. You have to havepride to take this stance. Action has a compelling power to makeothers understand your intentions.
Kuroda: We’ll work hard to implement forward-looking proposals
and activities that will exceed those expectations. There are plentyof issues, such as the carbon-neutral office, where we can demonstrate that commitment.
Yamamoto: I hold a high regard for KOKUYO as they enter a newphase of focusing on and responding to the big problem of the
global environment. I look forward to seeing KOKUYO take a leading role in the environmental management of the 21st century.

. Within three years, we will reduce the number ofto zero.

Since over a decade ago when “environmental” became a buzzword in a full range of social issues, KOKUYO, theacknowledged environmental leader in its field, has worked hard to make its products environmentally friendly. However,after concentrating on what we could do on our own to protect the environment, our progress on this front slowed down.
Today, as global warming accelerates, raising society’s environmental awareness is a vital priority. As a corporate manufacturing group that produces many of the products that offices and corporations use every day, KOKUYO keenly
recognizes its responsibility to take the lead. We are moving beyond everything we have done before, to develop productsthat are inherently environmentally friendly.
To convey this basic stance to all our stakeholders and the general public, in the 2008 edition of the KOKUYO General
Catalog, we placed an Eco X (“Non Eco”) mark next to each product that, in our opinion, was not sufficiently
environmentally friendly. Based on KOKUYO’s stringent proprietary standards, some 48% of
products in the stationery catalog and 25% of the furniture catalog were given this mark.
Our pledge is that, from now until the end of FY 2010, we will overhaul our
product line, ensuring that each and every product that appears in the 2011
catalogs is environmentally friendly and free of the Eco X mark. From2011 forward, we will continue to effect further improvements in environmental performance, to meet and exceed society’s expectations.
2008

Kuroda: Dr. Yamamoto, speaking to you today has redoubled my

Stationery

resolve. Thank you very much indeed.

48％

2009
2010

35％

15％

Furniture

25％

20％

1st year10％

2nd year

3rd year0％
KOKUYO Group CSR Report 2008 06

Tackling global warming01
New product line built in full considerationof environmental performance
Our aim is to reduce as much environmental load as possible inour production activities. When we started planning our production line for EDIA, a new line of storage furniture, our project
members focused on environmental performance, along with theusual themes of safety, quality and efficiency. We were all awarethat the market would turn its back on any operations that did nottake the environment into account, so we pressed ahead withenvironmental initiatives such as elimination of wastewater andzero-emission goals. This product line is the culmination of theexpertise we have accumulated to date.
“In the production of office furniture, the greatest environmental impact is made in the painting process,” said Nishimura. Afterthe steel plates are washed, they are treated with an undercoating
to prevent rust. The main painting follows, and the paint is driedusing heated air. The energy used in this process generates CO2,
and the process itself produces hazardous chemicals, volatile
chemicals (VOCs) and waste. In the new EDIA line, a new oxidized
zirconium liquid is used that is free of phosphoric acid, nickel andmanganese, along with a powderized paint that does not emit
VOCs. By using these new agents, the amount of sludge generated in processing has been reduced by an incredible 90%.
Though some automakers have also adopted these agents,
KOKUYO is the first office furniture maker to do so. To maintainquality, the process must treat all surfaces evenly, even irregularly
shaped parts. Nishimuraand his colleagues worked
with manufacturers for a
The factory is where manufacturers create value. It is also thesource of most of their CO2 emissions, and therefore an
essential part of any environmental plans. We visited KOKUYOFurniture’s Shibayama Factory, which launched a storage
furniture production line in November 2007.

Susumu Nishimura Manufacturing Technical Division, Shibayama Factory, KOKUYO Furniture Co., Ltd.
07 KOKUYO Group CSR Report 2008

year and a half to develop a
shower method that clears
this hurdle brilliantly.

EDIA storage furniture

Initiatives at the factory

REPORT
Dramatic reductions in CO2 generation
through the introduction of city gas

Promoting further environmental initiatives at the factory

put was also slashed as a result. With the introduction of a cell
production system and automated equipment, the factory can

In measures to reduce CO2 emissions, fortune smiled on Nishi-

Shibayama Factory found other ways to reduce CO2 output as

now produce 100 different products on the same line in the same

mura. A new city gas pipeline installed to supply Narita International

well. In one such move, all compressors, fans, conveyors andamount of time that would be required to produce 100 of the same

Airport, which is about 10 km north of Shibayama Factory, had justpumps, as well as equipment such as spot welding machines,

product. Shibayama Factory had improved both efficiency andbeen extended close to the factory. City gas, whose main compo-

were fitted with inverters. The improved spot welding machinesenvironmental performance.

nent is natural gas (methane), generates just three-quarters the CO2

can apply instantaneous high-temperature bursts while reducing

volume per unit of calorific value that heavy oil has. This was 14%

welding traces, thus improving finishing quality.

less than what Shibayama Factory had been generating using lique-

Another problem was overpro-

fied petroleum gas (LPG). Armed with this information, Nishimura

duction of the factory’s long list of

immediately looked into introducing city gas. As it turned out, notvery different products, which result-only did city gas produce less CO2, but (1) its cost was more stable

ed in a waste of energy, space,than that of LPG; (2) unlike LPG, there was no need for storage

resources, time, labor and inventory.

tanks to be installed inside the factory grounds, assuring greater

The factory introduced a variable-

safety and eliminating the need for a dedicated manager; and (3)model/variable-volume production

emissions of NOx were slight and SOx emissions were zero.

system and redesigned its lines with

CO2 emissions reduced through introduction of city gas

an eye on efficiency, dramatically

EDIA production line

reducing these losses, and CO2 out-

■Before installation

1,459 t/yearIncl.
electricity forvaporizing LPG

LPG■After installation

Shibayama is a factory on the front lines of the environmental
movement. It will soon begin full-scale production using city gas.

A control panel (left) automatically operates four inverter compressors(right) by varying their outputs between zero and 148 kW.

Reduction by 394 t

2,917 t/year

2,523 t/yearIncl.
electricity forvaporizing LPG

Electricity forvaporizing LPG
not required

LPG

City gas

Listening to stakeholders
Pilot operations in an expanded supply area
Chiba Gas Co., Ltd. has been grappling withcere desire to cut CO2 emissions. It was a“We calculated that, if we introduced city gas throughout theenvironmental issues for many years. In 2003, forpleasure for us to have been able to assist them. It

factory by modifying the LPG boilers and other existing heat

example, we obtained ISO 14001 certification. As

will be an important pilot case, as we were able tosource equipment, we could slash CO2 output by about 400 tons

an energy supplier, two of our most importantestablish the conditions for building a conduit pipe

environmental initiatives are the reduction of envi-

infrastructure and to prepare to make natural gas

ronmental load from our own operations and thewidely used in the Shibayama Industrial Complex,

reduction of customers’ environmental load

which was outside our normal supply area.

annually. Moreover, the cheaper cost of the fuel meant we could
recoup the necessary capital investment quickly,” explained Nishimura, showing us the results of a simulation. There was only one
problem: the laying of the pipeline to the industrial complex where
Shibayama Factory was located could not be completed in time

The presses process workpieces while automaticallyswitching among more than ten types of molds. This
intelligent equipment is a vital component of variablemodel/variable-volume production.

through the switch to natural gas. When we

In preparation for the final switchover that isreceived KOKUYO’s request, we immediately rec-scheduled for May 2008, we are filing the neces-ognized its significance and swung into action.

sary documents with the government, providing

for the launch of the EDIA line. To circumvent this issue, the fac-

This project was complicated by the fact thattechnical support for modifying heat sources, andtory leased LPG vaporizers from the gas company to ensure an

the construction schedule for their new line wasotherwise assisting this vital client, with solidinterim supply of LPG. With the factory’s final switch to city gas

not in sync with that for our pipeline. We overcame

backup from our parent company, Tokyo Gas

scheduled for May 2008, the factory is now busying itself with thethis problem thanks to KOKUYO’s strong and sin-

Group.

Daisuke Arimura
Section Manager, Industrial andCommercial Gas Sales and Service Section
Energy Sales and Service Department
CHIBA GAS Co.,Ltd.

final adjustments, such as upgrading heat source equipment.
KOKUYO Group CSR Report 2008 08

Tackling global warming02
How the drive for efficiency created newbases of operation
Kinki Integrated Distribution Center (IDC) is the KOKUYOGroup’s largest logistics center, handling some 30,000 shipments,
large and small, every day. This logistical nerve center was born in2007 by consolidating three former bases that distributed officeconsumables across western Japan. The aim of opening the newcenter, according to Masatoshi Kawabe, Deputy Center Manager
at Kinki IDC, is “To concentrate all distribution-based functions in
one location, introducing the latest warehouse designs to provide
Japan’s highest level of quality and efficiency in logistics, whileboosting environmental performance.” The key phrase of this reorganization is, “Move goods around as little as possible.”
The aims of this centralization of logistics operations were
threefold: (1) eliminate duplication of functions and inventory; (2)dramatically reduce transportation between bases; and (3) slash
the number of kilometers traveled by distribution trucks by consolidating the three locations that their services had been directed tointo one. Through these initiatives, KOKUYO aimed to improve efficiency and speed. The four-story Kinki IDC building was designed
so that trucks can pull into the first, second, or third floors. This
arrangement enables trucks toload and unload cargo close
to the appropriate sortingarea. Inside the center, the useof elevators to move cargo
between floors has been minimized, to restrain the growth
The environmental load of logistics comes from moving goods
around. If unnecessary movement can be reduced, or if it canbe made more efficient, we can reduce CO2 emissions while
improving the speed and accuracy of our logistics services. We
visited two logistics centers that are striving to bolster
efficiency while shrinking their environmental load.

of power consumption.

Trucks can dock at any of the first three floors directly.

“Upward of 1.5%” reduction in CO2 emissions
Innovations that bring greater efficiency also help slash CO2emissions. According to Kawabe, at the planning stage the company hoped to reduce shipping volume (measured in tonkilometers) by 1.5%. Because the number of shipments could be
reduced, and larger trucks could be used, further reductions in CO2

Masatoshi Kawabe Deputy Center Manager, Kinki IDC, KOKUYO Supply Logistics Co., Ltd.
09 KOKUYO Group CSR Report 2008

emissions are anticipated. Moreover, battery-powered forklifts are

Initiatives for logistics operations

REPORT
used for handling cargo throughout the center, improving the workwithout any packaging,” Koga recalled. “We were taken aback.

and Nagasaki. As its service area expands, the center is reducing

environment for employees while once again paring CO2 emissions.

They sounded so serious about reducing the volume of packaging

its CO2 emissions by eliminating packaging and thereby raising“In addition to revisions in packing procedures, we’d like to try

they received that we felt we had to do what we can.” At the samethe lading efficiency of each truck. A rise in customer complaints

a wide range of other environmental measures to cut CO2 output

time, as logistics professionals, the Kyushu ICD members were

had been anticipated, but there was a decrease compared to theand reduce waste,” remarked Kawabe.

aware that they had to maintain the quality of delivery while con-period when the opaque cardboard boxes were being used. This

stantly trying to cut costs. While measuring delivery time asis thought to be due to the fact that the greater transparency ofdescribed above, Kyushu IDC conveyed the concept of the project

the bags allows the products inside to be seen.

Measuring by the second to achieve
the right cost balance

and its importance to KOKUYO’s transport contractors. The result“Efforts for and results of more environmentally friendly ship-

The ways in which people buy office consumables has

was the creation of a reusable shipping carton for shipments

ping, reduced waste, and greater efficiency are all inseparablychanged dramatically with the development of online business.

between Kyushu IDC and the transport contractors. Inoue and his

linked,” reasoned Koga. Inspired by suggestions from customers,

Today consumers can order any product online and have it deliv-

colleagues conducted repeated tests of the reusable shipping car-his team worked with partners to reduce environmental load.

ered in quantities as small as a single pen or notebook. In theton, focusing on products Toto frequently ordered, to ensure no

Though many hurdles remain,

background, supporting this convenient system, are KOKUYO’s

accidents occurred en route. After these tests, Kyushu IDC’s use of

Kyushu IDC plans to try a variety

nationwide distribution centers.

simple packaging for delivery to the Toto head office had begun.

of new approaches to this end. For

When we visited one of these centers, Kyushu IDC, they were
testing a packaging line in which orders were collected for individ-

Having each challenge lead to the next evolution

ual customers based on their order forms, and placed in folding

Today Kyushu IDC uses polyethylene bags when shipping

containers for packaging and shipping. “We’re finding out how

products to relatively nearby prefectures, such as Fukuoka, Sagaa KOKUYO logistics center determined to deliver products asquickly and reliably as possible,
the challenges are endless.

Even hard-covered files are shipped insimple packaging.

much packing time increases or decreases if we switch from cardboard boxes to polyethylene bags for easy packing,” one worker
explained. To precisely determine the impact on shipping costs,
packing time was being measured to the second.

Responding to customer needs
The inspiration for this project came from TOTO Ltd., a bathroom-and-kitchen system manufacturer headquartered in the cityof Kokura, Kyushu. The young employees of Toto’s Purchasing
Division had launched a project called “We don’t buy garbage.” In
this project, the employees observed their company’s garbage collection points to see what kind of things were being discarded

Listening to stakeholders
Results of the “We Don’t Buy Garbage” Program
In 2005, Toto launched “We Don’t Buy Gar-absorbing and other packaging materials to only 50

areas of Japan we are experimenting with recycling

bage,” a project led by six members and intended

kg, less than one-seventh of the original volume*. In

used toilet seats and reusing plastic parts as sta-

mainly as a training exercise for the company’s

employee surveys, the team heard that the newtionery items. KOKUYO and our company areyoung employees. The mission of Toto’s Purchas-system spared employees the time and expense of

already cooperating, with KOKUYO using our recy-ing Division is to purchase and contract high-sorting and disposing of garbage. TOTO had notcled plastics as a housing material for their Dot Linerquality products and services at appropriate prices.

only reduced the cost of waste disposal, but had

tape glue. I hope the two companies will continue to

One issue closely related to this effort is the reduc-also raised the efficiency of the entire workplace.

closely link each other’s environmental measures.

tion of waste materials, the disposal of which must
be contracted out.

Thanks to KOKUYO’s hard work and persever-* Survey results of TOTO’s head office and Kokura Plant No. 1

ance in introducing simple packaging, many of ourthere. To their surprise, a strikingly large proportion consisted of the

The project was inspired by the idea of examin-other suppliers have joined the effort to reducepackaging from purchases of stationery and other consumables.

ing garbage piece by piece at our garbage

packaging. Some even started studying the idea of

Not only was this bad for the environment, but it incurred process-collection points. The team members determinedshipping with no packaging at all, and the results

ing costs as well. Could they simplify the packaging that would bethat a surprisingly large proportion of the total vol-have been tremendous. And of course, it’s deeply

discarded as soon as products reach the customers?

ume consisted of the packaging of office supplies.

gratifying to realize that the results of these activi-

At Kyushu IDC, Center Manager Kazuhiro Koga and Delivery

By having our suppliers switch to simpler packag-ties reduce environmental load for the benefit ofChief Shinji Inoue received the delegation from the Toto projecting using polyethylene bags, we were able tosociety as a whole.

team. “They said they wouldn’t mind if we delivered our products

reduce the previous 380 kg of cardboard, shock-

Koichi Morita
Procurement & Purchasing
Center, Purchasing Division
TOTO Ltd.

As for other environmental measures, in some
KOKUYO Group CSR Report 2008 10

Tackling global warming

03

Initiatives at the office

REPORT
Straight talk from the point of view of a
new employee
Efforts to reduce CO2 emissions at the KOKUYO head officethrough reduced energy consumption began in 2005. The officehas installed motion sensors in the light switches of hallways andstairwells, programmable timers in vending machines, and OA
power taps with centralized switches in desks.

“As a new employee, I’m still a novice in the environmental
field. That's exactly why I strove to raise people’s awareness ofenvironmental impact, in simple language everyone can understand.”

There’s still plenty of room to reduceenergy consumption in the office
KOKUYO’s head office also retooled its office equipment toIn the spring of 2007, Kozue Yokota, a freshman employee inproduce less CO2. Its budget was set to an amount that should be

the CSR Division, was assigned the task of facilitating further

covered by the resulting savings in electricity within two years. Inenergy savings by making the environmental load more visible.

addition to the electricity savings from the visualization exercise,“I developed a trick that provides everyone who works here

the office forecast that a 2.5-million-yen investment would yieldwith an easy way of measuring the amount of CO2 they canapproximately two million yen in energy savings per year. From

reduce,” Yokota explained. In washrooms, conference rooms andApril to December 2007, electricity consumption at the head officeelsewhere, she affixed handmade stickers beside light switchesbuilding dropped 6.2% compared with the FY 2006 level, whenasking people to turn them out when they are done. An especiallyenergy saving activities had not yet begun.

prominent sticker in the office says, “Energy saving is serious“We tend to assume that we’ve done all we can do to improvebusiness. An hour of energy conservation reduces CO2 output by

the use of equipment and raise employees’ environmental aware-

6 kg per year.” She even provided illustrations of how many PET

ness to save energy,” Yokota told us. “But looking back at ourbottles’ worth of CO2 is eliminated by these measures. In places

activities at the head office, I feel there’s still room for improve-

where the light systems are controlled separately, with multiple

ment.” Capitalizing on the energy-saving know-how she has

switches, Yokota appended illustrations that clearly correlatedacquired at the head office, Yokota aims to disseminate informa-each switch with the areas that it covered. Her efforts succeededtion to every office in the KOKUYO Group across Japan, and toin efficiently reducing the amount of unnecessary illumination in

the offices of its customers.

the office.

The office is a major business domain for the KOKUYO Group. So,
reducing carbon dioxide (CO2) emissions at our own offices is
an important activity that strongly impacts our future operations.
At the KOKUYO head office in Osaka, we are tackling global
warming in a wide variety of creative ways.

Kozue Yokota CSR Promotion Group, CSR Division, KOKUYO Co., Ltd.
11 KOKUYO Group CSR Report 2008

[Vending machines are shut down atnight and on weekends and holidays.
Of the 15 vending machines scatteredaround the KOKUYO head office, sevenare equipped with programmable timers.
These shut the machines down from9:00 p.m. to 5:30 a.m. on weekdays, andon weekends and holidays. This measure saves the office 23,500 yen per year
in electricity.

aIllustrations clearly show whichswitches control which lights. Previously,
the last person in the office would shutoff all the lights at once, but today thelights are switched off area by area, aseach is vacated in turn.

An OA power tap with a centralized switch is affixed toeach desktop PC.
When employees leave the office at the end of the day, asingle switch turns off all of their equipment. This simple
measure saves 19.5 kW in standby power per year, equivalent to the energy used to illuminate a typical living room forabout 200 hours.

Tackling global warming04

Maintaining carbon sinks, Part I

REPORTThe ReEDEN Series of reed-based products
0.2% of sales is contributed to NPO activities
for reed marsh preservation.

New products that extend the utilization of reeds
Many of KOKUYO’s paper products originate in Shiga, one of

The reeds proved difficult to process, as their short fibers madeJapan’s most environmentally advanced prefectures. Yoshimi

moisture removal difficult. Just rendering the reeds into pulp cost

Matsuki, in charge of product planning and development at KPS,

ten times as much as conventional paper. And the final producthad recognized from early on the vital role that reed marshes play

had to be sturdy enough for a range of everyday uses. After ain purifying the water and protecting ecosystems.

year and a half of trial and error, KPS unveiled the ReEDEN Se-

The reeds of Lake Biwa have traditionally been used to makeries, a suite of paper products with partial reed content, including

thatched roofs and blinds. As lifestyles have changed and imported

photocopy paper, notebooks, memo pads, and business cards.

alternatives have grown cheaper, however, demand for these prod-

Communicating how the utilization of reeds
contributes to the purification of Lake Biwa

ucts has slumped. With no modern applications for reeds in sight,
the cultivation of reed marshes has become insufficient, and thenitrogen and phosphorus that the reeds once absorbed has started

It is not until a well-balanced cycle of reaping, cultivating andto return to the lakes. Ironically, in some cases the reeds are clearedusing reeds is maintained that they can demonstrate their natural

by burning, adding needlessly to the atmosphere’s CO2 load.

purifying power. At local schools, Toshihiro Ota of KPS’s Environmen-

This state of affairs began to change in 2006. While searching fortal Promotion Group teaches children the role of the reed marshes in

new directions for the company’s operations beyond its conventional

Lake Biwa, the importance of cultivating the reeds, and why it is vital

products, Ken Yamauchi, president of KPS, came across postcards

to develop more applications for them. In December 2007, Ota par-made of reed paper that was being produced locally on a small

ticipated in a reed harvest, and in February 2008 he solicitedscale. “If we make industrial paper products out of reeds,” Yamauchi

volunteers at KPS for another reed harvest, in which he also partici-

reasoned, “we can benefit the company, the environment and soci-pated. Ota explained, “The biggest contribution we can make toety—all at once.” Under the leadership of Yamauchi, Matsuki and his

preserve the environment is to get the reed marshes involved in busi-

colleagues began to develop reed paper products in earnest.

ness activities that drive a virtuous ecological cycle. It may be time-

The development process ran into one problem after another.

consuming, but I’m determined to keep delivering results.”

Listening to stakeholders
The regeneration of Lake Biwa and Nishinoko revives a once-lost bond with people

Reed marshes play a valuable role in wetland ecology. In addition
to absorbing CO2 through photosynthesis, the reeds absorb
nitrogen and phosphorus as they grow, protecting freshwater
bodies from eutrophication, the overloading of water with
unnecessary nutrients. With careful tending, this remarkable trait
can be enhanced. At KOKUYO Product Shiga Co., Ltd. (KPS),
efforts are now underway to cultivate reeds and promote theiruse in the preservation of water quality.
(From left) KPS employees Hisakazu Noguchi, Yoshiaki Muragishi,

Tatsuko Tanida and Ritsuko Fujimura

Around 1942, when I was a little boy, Lakelite lakes. The preservation of the reed marshes is

Biwa had a system of some 37 satellite lakes andone part of that effort. I’m hoping to reintroduce

covered 2,903 ha. Today the number of satellite

some of the birds, fishes and other wildlife thatlakes is 24 and Lake Biwa has shrunk to 428 ha.

have been lost to the region. KOKUYO’s efforts in

Much of this lost area has become reclaimed land.

using reeds in industrial products is an enormous

In the pursuit of utility and convenience, we’ve

support to this program.

destroyed the delicate network that links people

I hope they’ll continue these worthwhile oper-with all living things. And people are the ones whoations for a long time. Even if it’s too ambitious forhave lost the most. Our water is dirty, our bodies

one company to handle alone, if several compa-

suffer from pollution, and our spirits are shaken.

nies can work together, I’m sure we can achieve

We’ve strayed too far from nature.

great things. Both of us, committed to achieving a

I’m now fully involved in the regeneration of
Lake Biwa and Nishinoko, the largest of its satel-Michiaki Tanba
Managing Director
Higashi-Omi (East Shiga) Water Environment
Self-Governance Association

sustainable society, can lend strength to eachother to move all of our projects forward.
KOKUYO Group CSR Report 2008 12

Tackling global warming

05
Regenerating planted forests throughperiodic thinning
Since its foundation, KOKUYO has manufactured and soldproducts made of wood and paper, including ledgers, files, officefurniture and much more. In a sense, the history of KOKUYO has
been made with the blessings of forests. In recent years, however,the number of people working in forestry has declined in Japan, as
prices for lumber have fallen. Many of Japan’s planted forests,
which comprise some 40% of the nation’s total woodland, are left
untended. As the density of the trees increases, individual trees
are unable to grow sufficiently. The dense canopy of leaves prevents sunlight from reaching the forest floor, choking off
undergrowth and bushes. Mammals, birds and even insects disappear from such forests. The woods are all around yet deserted andvirtually lifeless.
KOKUYO is addressing this problem by making furniture fromthe lumber obtained in periodic thinning. Based on a longstanding
relationship of mutual trust and respect, KOKUYO joined forces
with the Taisho Town Forestry Cooperative of Kochi Prefecture toform the KOKUYO Shimanto Yui no Mori Project, a conservation
project in the Shimanto river basin. Launched in October 2006,
this project is regenerating some 100 ha of planted cypress andcedar forests through systematic thinning. These carefully planned
thinning operations are designed to regenerate many of the original functions of the forests themselves, including CO2 absorption,
purification of river water, and support for a diverse ecosystem. In
August 2007, KOKUYO joined another project, the Forest Management Project in Cooperation with Environmentally Advanced
Companies (“Kyogyo no Mori”), sponsored by Kochi Prefecture.
Forests are vital sinks of CO2. Preserving their healthis an effective means in the fight against global
warming. The KOKUYO Shimanto Yui no Mori Projectcontributes to the health of woodlands through thethinning of the region’s forests while developing
innovative products.

This project’s activities include the utilization of forests as a carbon
sink as endorsed in the Kyoto Protocol.

Focusing on bonds with local
communities“In 2007, the second year of the project, we worked to expand
the scope of our activities and the area of woodland targeted.” So(From left) Takuya Fugami, MD Planning Group, MD Division, KAUNET Co., Ltd.; Shinichi Saito, Environmental Group, CSR Division, KOKUYO Co., Ltd.

13 KOKUYO Group CSR Report 2008

says Shinichi Saito, in charge of Yui no Mori management. Forest

Maintaining carbon sinks, Part IIREPORT
management proceeded according to a plan agreed on by thewere evaluated, and the first annual audit was completed suc-using cypress gleaned from the thinning process. This operation is

project’s management council, in which the Forestry Cooperative

cessfully in November.

one more facet of the program’s efforts to create a virtuous cycle

successively thinned out some 65 ha of forest. In February 2007,

Except for the forest thinning itself, a task that requires profes-

between the environment and business. As the project’s first com-as originally expected, the Yui no Mori Project earned Forest

sional training, all Yui no Mori activities were carried out throughmercial offering, in 2007 a series of eight products, including

Stewardship Council (FSC) certification, proof of excellence in for-the sweat and toil of Saito, his staff at KOKUYO and local resi-

bookstands and desk trays, were released through KAUNET, theest management. Moreover, to monitor long-term changes in thedents. The bonds of friendship and cooperation forged in that

KOKUYO Group’s office-supply mail-order service. Moreover, theYui no Mori forests due to thinning, the project launched two major

process, Saito emphasizes, is what puts the “Yui” in “Yui no Mori”

Yui no Mori Project received some 137 donations of KAUNET user

initiatives starting from January 2007. The first was a survey of the(“Yui” means “bond” in Japanese).

points in just four months. KAUNET transferred these funds

amount of rainfall flowing on ground level, conducted with the help

In preparation for activities in 2008, KOKUYO, the landlords

directly to the Taisho Town Forestry Cooperative, to defray theof Professor Yuichi Onda and his lab at the Graduate School of theand the Forestry Cooperative agreed to expand the area of theexpenses of periodic forest thinning. In fact, the donation was

University of Tsukuba. In the second, a thorough survey of the

project to 400 ha, four times the original area. Increasing the area

equivalent to the cost of thinning 10 ha of forest.

ecology of the target forests was conducted, with the generous

subject to periodic thinning is also expected to achieve a quantum

participation of the Forestry Cooperative and the students ofincrease in the amount of CO2 absorbed.

Takuya Fugami, in charge of product planning at KAUNET. “We’ll

Kochi Prefectural Shimanto High School. All of these activities

Creating economic value by turning
thinned wood into products

be sure to add some new products, to fulfill the expectations ofPrincipal Activities in the Previous Year
(April 1 to December 31, 2007)“I never expected such an overwhelming reaction,” exclaimed

customers and the townspeople of Shimanto.”
Efforts toward Yui no Mori will continue to generate a virtuous

One of the unique characteristics of Yui no Mori is the produc-

cycle of environmental preservation and economic growth.

tion and sale of original Yui no Mori products at a local timber mill,July・Summer tour,
Kyogyo no Morisigning ceremony

Listening to stakeholders
From Yui no Mori to the rest of Japan: Preserving the forests through periodic thinning

April ・Spring tour

People are coming to see the value of our for-tion of a deteriorated forest, it was possible in Yuiests with new eyes. Whether trying to restrain

no Mori. KOKUYO understands the significance of

global warming or conserving natural resources,

this research and quickly offered my team the use

people are gaining a new appreciation of the roleof Yui no Mori, and for that I’m extremely grateful.

forests play. It’s unfortunate that our planted forests across Japan are in such a sorry state.

November

September・FSC certification,
annual audit

・Launch of eight Yui no Mori products on KAUNET
・Monitoring survey and meeting of the management council

Yuichi Onda
Associate Professor, Graduate School of Lifeand Environmental Sciences, University of Tsukuba

The forest acts as a natural dam, harbors a
wealth of natural resources and serves as an enor-

I have conducted a survey of the relationshipmous sink for CO2. With all this in mind, I hope tobetween the desolation of planted forests and thedemonstrate that appropriate thinning protects

moisture retentiveness of soil. One of the unusual

forest soil, leading to better protection of river andaspects of Yui no Mori is that the planted forests

even marine environments. The knowledge gainedthat receive periodic thinning and those that don’t

here at Yui no Mori should be put to work in every

lie side by side. For us researchers, it’s a perfectregion of Japan where planted forests have fallen

observation point. So when we needed to study

into disrepair. It is with that desire in my heart thatwhether thinning could restore the moisture reten-

I am continuing this survey at Yui no Mori.

KOKUYO Group CSR Report 2008 14

CSR Management

KOKUYO Group CSR Charter

Basic policy
Zentaro Kuroda, founder of KOKUYO, left us

The KOKUYOGroup andCSR

his way of looking at fulfilling your role in society—even if you feel it is unglamorous or

The KOKUYO Group shall be sincere in its pursuit of business and shall be an enterprise needed by society even as 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 living up
to its legal obligations and fulfilling its social responsibilities as a corporate citizen, KOKUYO shall win thetrust of customers, stockholders and all parties concerned and maintain the sustainability of its business.

Customers

1. KOKUYO shall assure customer satisfaction and earn customer trust by taking thecustomer’s point of view and planning and offering products and services accordingly, thereby serving a useful purpose in the world.
2. KOKUYO shall be a unique business that continuously offers creativity, efficiency
and comfort as it actively leads the way in the evolution of both customers anditself.

Local
Communities

1. KOKUYO understands that it is a member of the community and shall seek to bea good corporate citizen trusted by society because of the way it interacts withlocal communities, contributes to society in many ways and helps to build a richsociety.

Environmental
Protection

1. KOKUYO recognizes protection of the global environment from threats such as
global warming and deforestation as one of the greatest concerns of all humanity,
and thus it shall use the combined wisdom of its employees and mobilize them tosolve these issues.
2. KOKUYO recognizes its responsibilities as a provider of products and a consumerof resources, and as such shall have in all its activities a consciousness of thethree R’s: Reduce, Reuse, Recycle.

Business
Activity

1. KOKUYO shall compete freely, fairly and transparently, shall have fair trade withour business partners and shall maintain healthy and proper relationships withgovernments and authorities.
2. To assure that KOKUYO’s relationships with its suppliers are always fair and that
KOKUYO remains a trusted company, KOKUYO shall cooperate with its suppliers
and seek to grow with them.
3. KOKUYO recognizes its duty to shareholders to increase corporate value and shallassure transparent, healthy corporate management that is trusted by society.

Human
Rights

1. KOKUYO shall respect the rights of all persons with whom it deals in all aspectsof business. It shall strive for a working environment free of discrimination andshall 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.

burdensome—which he called “gratuitous business,” and our management philosophy, whichclearly states his own attitude toward business.
Derived from these sets of business ethics is
the KOKUYO Group’s corporate philosophy“Contributing to society by providing superior
products,” which, in turn, serves as a guideline
for the Group’s CSR activities.
Based on this guideline, we instituted the
KOKUYO Group CSR Charter, which outlines
our role in society as a good corporate citizen,
and underlines the importance of building optimum relationships with our wide-ranging
stakeholders. The charter enumerates our basic
policies, intended to ensure the positive development of the Group and of society as a whole,in five categories: customers, local communities,

environmental

protection,business

activities, and human rights.
Management Philosophy
Gratuitous BusinessIn addition, we have established a KOKUYOGroup Code of Conduct that indicates the way

Corporate Philosophy“Contributing to society byproviding superior products”

employees should behave on a daily basis inorder to maintain the trust and goodwill of
stakeholders.
These statements are collected in the CSR

KOKUYO GroupCSR Charter

Guidebook, which is distributed to the staff ofthe entire Group to ensure that every staff
member is fully aware of KOKUYO’s spirit and

KOKUYO Group
Code of Conduct

15 KOKUYO Group CSR Report 2008

policy.

CSR Management
stipulated in the KOKUYO Group Governance
Program, established in line with the introduction

Corporate governance systemof a holding company system in October 2004.

Basic policy on complianceIn addition, we have an auditing system in

Corporate
GovernanceandCompliance

The KOKUYO Group places great emphasis

place, and each of the ten members of the

The KOKUYO Group does not see “compliance”

on corporate governance based on the core val-

Board of Directors is appointed to a term of only

as mere observance of the law, but rather as aues of transparency, speed, and fairness, and is

one year to allow flexible responses to changes

prerequisite for all citizens and organizations inreinforcing working systems to uphold these val-in the business environment. There are four

society. We strive for thorough compliance,ues. While clarifying operating authority andauditors (including two external auditors), andworking with sincerity in all day-to-day actions.

responsibilities under the holding company sys-

two employees are engaged full-time as audit-

In recent years, consumer trust in corpora-tem, we are also making efforts to strengthen

ing staff. Four lawyers on an advisory contract

tions has been seriously eroded by recurring

overall supervisory functions and enhance cor-

provide legal advice as the need arises. We arescandals and dishonest behavior. We at the

porate governance. The Group’s management

also strengthening our system of internal audit-

KOKUYO Group postulate corporate ethics andframework, basic structure, and essential points

ing, in which the holding company andcompliance in order to maintain the trust of con-on Group operations under the new system areindividual Group companies cooperate in audits.

sumers and society.

KOKUYO Group Governance System
General meeting of shareholders
Appointment and dismissalof directors

Appointment anddismissal

Appointment anddismissal of auditors

・ Group Management Conference (held twice a month in principle)
As the President’s advisory body, the Group Management Conference
deliberates overall Group strategy and policies, makes decisions on
and announces vital matters regarding the operations of the Group’s
holding company and operating companies, and assists in exchanging information and communications among various levels ofmanagement.

Holding company(Group parent company )Board of Auditors

Board of Directors
Auditing
President

Coordination
Group Management Conference
Accounting
Accounaudits

Central Workplace Safety and Hygiene Committee

Management Auditing Division
Diversity Promotion Committee

Internal auditing

ting
auditors

・ Board of Auditors (held once a month in principle)
The Board of Auditors, consisting of four auditors, receives reports onvital issues related to auditing, deliberates and makes decisions on
those issues. The Board of Auditors is responsible for auditing the
Directors’ execution of their duties, while keeping close contact withthe accounting auditors, management auditing sector, and auditors ofoperating companies in order to share information.
・ Management Auditing Division (internal auditing)This division works to prevent dishonesty and errors in all areas of the
management activities of KOKUYO Co., Ltd. (holding company) andoperating companies, as well as evaluating and improving the effectiveness of risk management and governance with audits, advice,recommendations and proposals.

Environmental Committee
Risk and Compliance Committee

ControlGroup operating companies

・ Board of Directors (held once a month in principle)
The Board of Directors consists of ten directors, chaired by the President, and deliberates and makes decisions on basic KOKUYO Group
policies and vital aspects of its operations.

Internal audit system* The numbers of directors, auditors, auditing staff members, and lawyers are
current as of December 31, 2007.

KOKUYO Group CSR Report 2008 16

Environmental Report(Input parameters)

Environmental load posed bybusiness activities

Relationship
BetweenBusiness
Activities andthe Environment

The KOKUYO Group is engaged in the manufacture andsale of stationery, furniture, and store fixtures, along withthe planning, research, distribution, construction, and services incidental to these products. The flow chart at rightshows quantitative data representing the environmentalload generated by these activities along the product life
cycle, at the planning, research and development; manufacture; sales and service; distribution (storage and shipping);
distribution (contracted delivery); and usage stages.
The KOKUYO Group is working to advance its environmental protection program mainly in those areas to which
the Group’s operations are directly related. Namely, theseare planning, research and development; manufacture;sales and service; and distribution (storage and shipping). In
addition, we work to keep tabs on quantitative data related
to contracted-out delivery and the recovery and reuse of
products that customers have used, in order to maintain acomprehensive awareness of the total environmental load
generated by our business activities.
In 2007, we were able to attain, more or less, reductions
in environmental load in the areas of planning, research anddevelopment; sales and service; and distribution (storage
and shipping), but a proactive shift to in-house manufacturing meant that the environmental load of our manufacturing
activities increased.
Notes:
1. The data for environmental load from storage and shipping carried out by
KAUNET Co., Ltd. had been included in the “sales and service” category
until March 31, 2007, but it has been transferred to the “distribution (storage and shipping)” category in order to more accurately reflect the actual
nature of this stage of their operations.
2. Regarding sulfur concentrations found in gasoline and light fuel oil, thebasis for calculating SOx emissions, the following changes were made asof January 1, 2007 in order to reflect the actual situation.
・Gasoline : 100 ppm ➝ 10 ppm
・Light fuel oil : 500 ppm ➝ 10 ppm
3. As of January 1, 2007, three overseas plants are accounted for in the values for SOx and NOx emissions.

17 KOKUYO Group CSR Report 2008

Energy: gas (city gas, LNG, LPG),
oil (gasoline, kerosene, light fueloil, heavy oil A), electricity (volume
purchased from electric powercompany)
Water: volume consumed as tap
and industrial water
Paper: copy paper

EnergyPaper
Water

101,817 GJ
62 tons
42,000 m3

INPUT(Output parameters)
Greenhouse gas: CO2 (volume ofcarbon dioxide emissions generated by consumption of electricity
and fuels); other gases (CH4, N2O
emissions calculated as those of
CO2)
SOx: sulfur oxide generated by
the use of fuels
NOx: nitrogen oxide generated by
the use of fuels
COD, BOD: volume released into
public waters by domestic plants
Drainage: volume discharged into
public waters and sewage systems(Other parameters)
Cyclical use
Water: volume used cyclicallyinside business locations; resources: amount reused insidebusiness locations
Distribution (contracted delivery):data for furniture delivery and stationery delivery (partial)
Total sales volume: for stationery,furniture, and data for the retailsectorPlanning, R&D

Greenhouse gas

OUTPUT

4,028 t-CO2
0.002 tons
SOx0.82 tons
NOx
Volume of waste,etc. disposed of 622 tons
Drainage
42,000 m3

Energy
Paper
Water

353,530 GJ
12 tons
116,000 m3

Material input
Paper
MetalsPlastics
LumberOther

89,042 tons
55,242 tons
20,765 tons
3,134 tons
1,615 tons
8,287 tons

EnergyPaper
Water

50,540 GJ
56 tons
5,000 m3

EnergyPaper
Water

184,007 GJ
48 tons
29,000 m3

Energy353,688 GJ

Total sales volume271,000 tons

Containers and packaging
13,578 tons

Manufacturing

Sales and service

Distribution(storage and shipping)

Water usedcyclically insideplants 134 m3

Greenhouse gas
15,286 t-CO2
SOx0.02 tons
NOx
1.57 tons
Volume of waste,etc. disposed of 6,616 tons

COD
231 kgBOD
39 kg
Drainage*
87,000 m3* Of this, the volume
discharged into public
waters is
64,000 m3

Greenhouse gas
2,685 t-CO2
SOx0.01 tons
NOx
5.68 tons
Volume of waste,etc. disposed of 138 tons
Drainage
5,000 m3

Distribution(contracted delivery)
Volume ofresources reused
inside businesslocations 238 tons

Greenhouse gas
7,394 t-CO2
0.002 tons
0.82 tons

SOx
NOx
Volume of waste,etc. disposed of 9,992 tons
Drainage
29,000 m3

Total weight shipped
480,000 tons
Average distance traveled
197 kmTotal shipping volume
125 million ton-km

Usage

Recovery of used products
1,372 tons
Reuse of used products
69 tons

Greenhouse gas 24,625 t-CO2
SOx
0.2 tons
NOx
169 tons

KOKUYO Group CSR Report 2008 18

Environmental Report

KOKUYO Group Environmental
VisionEnvironmental
Vision/Mediumto Long-term
Environmental
Action Plans
and Results

The KOKUYO Group fully recognizes theimportance of preserving the global environment, and in July 2002 established the
KOKUYO Group Environmental Vision with aview to applying the corporate philosophy of“Contributing to society by providing superior
products” to environmental activities. The Environmental Vision outlines the fundamental
philosophy to be observed by the Group, alongwith the Environmental Policy divided into six
areas of endeavor: prevention of global warming; resource conservation and recycling;procurement, development and supply of ecoproducts; legal compliance and pollution pre-KOKUYO Group Environmental Vision
KOKUYO
Environmental Policy
Legal Compliance and
Pollution Prevention
KOKUYO complies with not only environmental laws, but also voluntary standards, andindustry policies on which the company has
agreed. Every effort is also made to prevent
pollution.

Information Disclosure andCommunication
We will actively disclose environmental information and engage in communication with ourcustomers and other external parties to continually enhance our environmental activities.

Prevention of Global Warming
To prevent global warming, KOKUYO works to
reduce emissions of CO2 and other greenhouse gases.

Fundamental Philosophy
Since KOKUYO’s founding, our corporate objective has been “Contributing
to society by providing superior products.” In line with this objective, wedraw upon the collective wisdom of
all company personnel and act
Group-wide to address an issue of
urgency to the whole world — environmental conservation.

● Our environmental management strives tofulfill both environmental and business objectives. The company sets targets for mitigating
environmental impact, and all employees work
together for continuous improvement.

To help achieve a recycling-based society, we
use the earth’s limited resources sparingly andstrive to fulfill our obligation to reduce, reuse,
and recycle.

KOKUYO practices green procurement toobtain product components, and develops andsupplies eco-products. Additionally, environmental impact is minimized throughtechnological innovation and the developmentof environmental business models.

● The maintenance and improvement of frameworks to achieve these targets, the nurturingof human resources, and the development ofevaluation systems are the means we use in
striving to enhance our environmental andeconomic effectiveness.

Resource Conservation andRecycling

Procurement, Development andSupply of Eco-products

Environmental Management

19 KOKUYO Group CSR Report 2008

vention;information
disclosureandcommunication; and environmental management.
Our “Green Initiative 2010,” the program forour medium- to long-term environmental actionplans, sets forth specific steps and targets inline with the above-mentioned content of the
KOKUYO Group Environmental Vision, and wehave undertaken activities based on theseguidelines.

Green Initiative 2010
(The KOKUYO Group’s program for medium- to long-term environmental action plans)Green Initiative 2010○: Targets attained; X: Targets not yet attained; −: Not applicable (e.g. targets interrelated in multiple areas)

Targets and results for 2007 (Jan. 1 to Dec. 31)

Environmental
PolicyPrevention of
global warming

Resource
conservation andrecycling

Procurement,
development andsupply of
eco-products

Legal complianceand pollution
prevention

Information
disclosure andcommunication

Environmental
management

Items to be addressed

Evaluation
TargetTargets for 2010

ResultReduction of CO2 emissions(over the year ended March 31, 1991)

8.3% reduction

6.1% reduction

×

10% reduction

Reduction of CO2 emissions generated during
deliveries (over the year ended March 31, 2007)

Keeping track of emission volumes
Formulation of a reduction plan

Keeping track of emission volumes
Formulation of a reduction plan○

4% reduction over the year ended March 31, 2007

Expansion of modal shift

Improvement

90.6% of the previous year’s level(Number of times freight train was used: 7,198)

×

ExpandReduction in the final disposal volume of waste(over the year ended March 31, 1998)

Maintain present progress levels

66% reduction○

64% reduction (this rate will be sustained for earlyattainment of targets)

Improved recycling rate for the overall
volume of waste

Maintain present progress levels

92.8%

○

91% (this rate will be sustained for earlｙ attainmentof targets)

Promotion of “zero emissions”

Maintain present progress levels

Switchover to material recycling○

Expansion to all business locations

Improvement in the sales ratio of
eco-products

65.0%

65.0%

○

Elimination of products marked with the Eco X markImprovement in the usage rate of recycled
paper in products, containers and packaging

Improvement

47.9%

×

60%

Improvement in the usage rate of recycledplastic in products

Improvement

25.1%

×

38%

Promotion of green
purchasing

Promotion of green purchasing for general
items

Determined by category

See page 22――

Strengthening ofmanagement systems forhazardous chemical
substances

Reduction in hazardous chemical
substances contained in products

Compliance with the RoHS Directive

See page 22―

All supply sources will follow these guidelines.

Reduction in hazardous chemical substancesused in manufacturing processes

Maintain present progress levels(eliminating toluene and xylene)

Toluene: 7.9 kg reduction
Xylene: 11.6 kg reduction○

All materials will be free of toluene.

Introduction of a management system tothe supply chain

―

―

―

―

Disclosure of environmental
information

Web site enhancement

Regular updates

Regular updates○

Regular updates

Environmental (Eco) markings

Expansion of products displaying
KOKUYO eco-marks

An increase in the number of
products displaying eco-marks

30,157 products (an increase of 191)○

An increase in the number of products displaying
eco-marks

Communication

Strengthening of links with industry
associations, NPOs and communities

Continuation of activities

Continuation of activities○

Continuation of activities

Activities contributing tosociety

Promotion of forestation

Regional and global environmental
preservation activities

Green fund-raising, Ikoma no Mori
project, Yui no Mori project○Continuation of forest preservation activities

Community cleanups

Execution of cleanup projects

Execution of cleanup projects○

Continuation of cleanup projects around offices
and business locations

Environmental management

Maintenance and improvement ofenvironmental management systems

Maintain present progress levels

Maintenance of integrated authentication○

Maintenance of integrated authentication

Fusion of management
and the environment

Establishment of an environmental result
evaluation system and environmental accounting

Maintain present progress levels

Display of Eco X (“Non Eco”) marks in
the general catalog○

Continual improvements in CSR management

Promotion of an
ecological business modelBusiness application and operation of a
new ecological business model

Execution of the Yui no Morimanagement plan

Execution of the Yui no Morimanagement plan○―

Measures taken to prevent
global warming(improved energy efficiency)

Measures aimed at resource
conservation and recycling

Development of
eco-products

KOKUYO Group CSR Report 2008 20

Environmental Reportsions increased by 16%. This was because of adrop in production efficiency, due to a 29%
production increase over the previous year in
irregular products whose specifications differ
from existing products.
At the same time, at KOKUYO Product Shiga
Co., Ltd., there was a year-on-year reduction of
4.7%, thanks to a change in the partial-load
operation mode of compressors, and careful
control of air-conditioning temperature.

Overview of the year ended
Dec. 31, 2007

Measuresagainst Global
Warming

In 2007, the KOKUYO Group achieved a2.2% reduction in the volume of CO2 emissions
from offices and a 1.8% reduction in emissions
from distribution (storage and shipping), compared to the previous year. However, as there
was a 9.0% increase in CO2 emissions from factories, which account for about half of theGroup’s total CO2 emissions volume, the result
was an overall increase of 3.4%, or approximately 970 tons.

Measures against global warming
adopted during distribution(storage and shipping)Target for the year ended Dec. 31, 2007
Volume of CO2 emissions: 8.3% reduction
from FY 1991 (ended March 31, 1991) levels(28,620 t-CO2)

Results for the year ended Dec. 31, 2007
Volume of CO2 emissions: 6.1% reduction
from FY 1991 (ended March 31, 1991) levels(29,311 t-CO2)

Measures against global
warming adopted at factories

The year 2007 saw a partial reorganizationof Group operations, with the operating company responsible for product distribution
divided into two separate segments for stationery and furniture, and subordinated to the
manufacturing companies of their respective
product areas. This change is intended toreduce the burden on the environment by raising the overall efficiency of Group operations,while ensuring high-quality service.
As part of this undertaking, KOKUYO Supply
Logistics Co., Ltd., a segment devoted to stationery distribution, merged its previously
separate distribution points scattered acrossAt three KOKUYO Group factories, including
Mie and Shibayama, the volume of CO2 emissions increased over that of the previous year.
An increase in production was the primarycause of the increase.
At the Mie Factory, the production adjustment of spring 2006 and the high level ofproduction in 2007 resulted in an increase inCO2 emissions of approximately 400 tons. Also,at the Shibayama Factory, a 15% jump in thevolume of production meant that CO2 emis-

CO2 emission volumes in transition（t-CO2）30,00031,220

Breakdown of CO2 emissions by business area
（t-CO2）

27,881

29,17328,78028,33729,311

Offices
6,639

20,000Distribution(storage and shipping)
7,389

0Mar.’91

21 KOKUYO Group CSR Report 2008

Mar.’04

Mar.’05

Mar.’06

Mar.’07 Dec.’07 (fiscal year)

Measures against global
warming adopted in offices
While the overall volume of CO2 emissions
increased, the office segment saw a reduction
to 6,639 tons, from the 6,785 tons recorded in
the year ended March 31, 2007. This is thankslargely to the CO2 emissions visualization exercise, which resulted in the small but steadyaccretion of results from various low-profile
activities such as the thorough switching off ofunnecessary lights, proactive use of stairs, theCool Biz program and No Overtime Day*.
We plan to pursue information sharing to
spread measures that have been adopted at
the head office to other offices, such as theintroduction of motion-sensitive lights andswitch-equipped OA power taps.

➔ Related information P. 11
The implementation of No Overtime Day differs depending on the* operatingcompany.

Breakdown of CO2 emissions by source
LNG (liquid natural gas) 2%

Others 2%

Gasoline 8%
Factories
15,283

10,000

the Kansai region to consolidate into the more
efficient Kinki IDC, with efforts made to unify
inter-location shipping routes, use larger trucks
and reduce overall traveling distances.
Similar merging and streamlining was also
carried out in Tokorozawa and Chiba, with further developments at other locations planned in
the future.
➔ Related information P. 9-10

LPG 17%
Electricity
71%

Environmental Report

Implementation of green
procurement guidelines

Dealing with
Hazardous
Substances/
Green Procurement
Target for the year ended Dec. 31, 2007
1. Investigation and action regarding materials
covered by the RoHS Directive• Stationery: 8,000 product items checked• Furniture: 7,000 product items passed
2. Promotion of products with lower VOC
content• Furniture: Percentage of F☆☆☆☆ lumber
material product items: 58%

Results for the year ended Dec. 31, 2007
1. Investigation and action regarding materials
covered by the RoHS Directive• Stationery: 7,700 product items checked• Furniture: 8,000 product items passed
2. Promotion of products with lower VOC
content• Furniture: Percentage of F☆☆☆☆ lumber
material product items: 60%

The KOKUYO Group published the Green
Materials Procurement Guidelines in 2004, withthe aim of managing the chemical substances
contained in the parts and materials of all products, and establishing an environmental
management framework for the entire supply
chain, including services such as distribution
and installation. We conducted this work in2007 with an emphasis on compliance with the
PRTR law and RoHS Directive.

Measures to reduce levels of chemical
substances in product development
The KOKUYO Group follows independent
hazardous substances management regulations
drawn up in 2005.
In order to reduce levels of hazardous substances, particularly those covered by the RoHS
Directive, KOKUYO S&T Co., Ltd. conducts awritten survey at all suppliers to confirm non-useof these substances. To verify the results of thesurvey, screenings are carried out with our fluo-

Rate of progress of green
purchasing
TargetResult

100%

95.6%

Stationery

90%

78.6%

Equipment

100%

83.3%

Office automation equipment

100%

67.5%

Lighting

100%

95.4%

Uniforms and work clothing

100%

98.5%

Work gloves

70%

80.5%

Copy paper

rescent X-ray analysis equipment. Materials withdoubtful results are subject to further investigation with the cooperation of the suppliers, withthe goal of eliminating the substances in question. 7,700 separate product items were checkedin this way in 2007. In addition, the results ofthese checks are stored in a database along withthe product development records, and a systemof sharing this information is under development.
KOKUYO Furniture Co., Ltd. is making every
effort to reduce levels of hazardous substances,
especially from new products, and has raised
the number of products compliant with the
RoHS Directive to 8,000, through programs
such as the creation of a database containing
the results of hazardous-substance content
checks reported from suppliers. We are also
reducing VOC*1 levels in currently existing products, and have raised to 60% the percentage*2of products with a lumber rating of F☆☆☆☆.
*1 Volatile Organic Compounds*2 Refers to the percentage of products included in the 2008 general furniture catalog, primarily those containing lumber materials

Measures to reduce levels of chemical
substances in the production processswitching from the water-based silver metallic
coating that contains low levels of VOCs andhas been used up until now, to a VOC-freepowder-based coating. Also, we are in the process of switching from the previously usedodoriferous chlorophrene rubber-based adhesive to an odorless styrene butadiene rubberbased adhesive, and have used the new adhesive in the desktop panels of our new Connect
Line and Work Gate/S desks.
At KOKUYO Product Shiga Co., Ltd. wehave reduced the levels of ethylene glycol in theback carbon paper used in making copying
books, by changing from an ink-coated paper
to a paper impregnated with ink.
At the Shibayama Factory, we had beenusing coatings containing xylene for some of
the made-to-order partitions that we produce,
but we have been switching over to a waterbased coating since 2005, and the year 2007
saw a reduction of about 20%, or 20.4 kg, in
the amount of xylene used. In addition, we have
gradually installed the latest equipment at thefacility that uses water-based coatings, achieving a major reduction in the volume of 1,3,5trimethylbenzene used—from 11.8 kg in FY
2006 (ended March 31, 2006) to only 1.0 kg.

At the Mie Factory, we are in the process ofChemical substances covered under the PRTR Law in the year ended Dec. 31, 2007
Ordinance
number

1
270
227
16
232
63
40
43
309
224

Name of chemical substanceAmountused

Zinc compounds (water-soluble)
Di-n-butyl phthalate
Toluene2-aminoethanol
Nickel compounds
XyleneEthylbenzene
Ethylene glycol
Poly(oxyethylene) nonylphenyl ether
1,3,5-trimethylbenzene
Total

1,864.9
1,797.6
271.4
183.0
107.8
92.0
7.4
4.8
1.6
1.0
4,331.4

Volume emitted/ Volume transported
Volume of drainage Volume of waste
Atmosphericdisposed ofemission volume
discharged

0.0
0.0
89.5
173.9
0.0
92.0
7.4
0.0
1.4
1.0
365.1

5.8
0.7
0.0
9.2
0.0
0.0
0.0
0.0
0.0
0.0
15.7

0.0
100.2
0.0
0.0
75.5
0.0
0.0
1.1
0.2
0.0
177.0

(Unit: kg)

Subtotal

Volume removed
in treatment

Volumerecycled

Volumeconsumed

5.8
100.9
89.5
183.0
75.5
92.0
7.4
1.1
1.6
1.0
557.8

945.9
0.0
181.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1,127.8

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

913.2
1,696.7
0.0
0.0
32.3
0.0
0.0
3.7
0.0
0.0
2,645.9

Notes: 1. “Volume removed in treatment” refers to the volume of “chemical substances covered under the PRTR Law” that were transformed into
other substances through incineration, neutralization, decomposition, reactive treatment or other means used within business locations.
2. “Volume consumed” refers to the volume of “chemical substances covered under the PRTR Law” that were taken out of businesslocations as other substances as described above or as components of or accompaniments to products.

KOKUYO Group CSR Report 2008 22

Social Responsibility
ReportIR activities in Japan andabroadResponsibilities
to Shareholders

To assure that the KOKUYO Group remains
a trusted and admired entity, the Group’s CSR
Charter calls for “transparent, healthy corporate
management trusted by society.” One of thevital parts of this management is investor relations (IR) with shareholders and investors.
Corporate investors and analysts are speedily and accurately informed of the Group’s
current condition through semiannual settlement briefings and individual visits. Individual
investors are kept abreast of our results andstrategies at IR fairs and other means.
In response to the recently increasing number of overseas investors, in 2007 KOKUYO
made individual visits to the investors in the
United States, Europe and Asia. Every effort ismade to explain the Group’s management
plans and ensure smooth, interactive communication.
Information that may impact investment
decisions is promptly disclosed on our Web
site.

Settlement briefing

23 KOKUYO Group CSR Report 2008

Dividend policies and results
In an effort to place ever more emphasis on
shareholders in our management and in consideration of consolidated business results, we aresetting a target of a 20% or higher dividend payout
ratio in addition to the existing stable dividend.
For over ten years, the annual dividend has
been maintained at 15 yen per share, excludingcommemorative dividends. The fiscal year
under review (ended Dec. 31, 2007) was only
nine months long due to a change in theaccounting period, meaning that the dividend
for the year will be 11.25 yen (interim 7.5 yen,
year-end 3.75 yen).

Anti-takeover measures(preventing the massive
purchasing of shares)
In order to ensure the value of the KOKUYOGroup, and maintain and improve its shareholders’ profits, KOKUYO introduced measures todeal with situations in which buyers attempt topurchase KOKUYO Co., Ltd. shares in excess
of a set amount (anti-takeover measures), withthe approval of the annual general meeting ofshareholders held in June 2007.
These measures consist of bulk share-buying rules to be followed by bulk buyers, andanti-bulk buying countermeasures to be adopted by KOKUYO. Also, we established an
independent committee expected to make fairand neutral judgments on issues such as thecorrect application of the bulk-buying rules andthe prevention of action based on arbitrary

decisions by the Board of Directors.
The measures are subject to review as needed in order to better achieve their goals, or in
response to changes in the status of related
laws and regulations.

KOKUYO selected for inclusion
in prestigious SRI indicesboth in Japan and abroad
Investors are growing increasingly interested
in socially responsible investment (SRI), which
includes investing in companies that are actively
engaged in measures to protect the environment, offer expanded employment opportunities,
and otherwise contribute to society. In recognition of its engagement in these areas, the
KOKUYO Group has been selected for inclusionin the prestigious Ethibel Sustainability Index,
published by Ethibel, one of the top SRI consultants in Europe and North America.
The KOKUYO Group has also earned inclusion in a number of other highly respected
domestic and international sustainability indices, including FTSE4Good, published by UKbased FTSE, and the Socially Responsible
Investments Share Index, compiled by Morningstar, Inc. in Japan.

Social Responsibility
ReportBasic policy

Contributions
to Society

The KOKUYO Group adheres to the corporate
philosophy of “Contributing to society by providing superior products,” and as such aims tomaintain the trust of communities by continuing
to act as a good corporate citizen through a wide
range of social contribution programs. Dividing
our activities into the three categories of Ecology,
Co-existence with Communities, and Educationand Welfare, we aim to benefit society throughproducts that are familiar in everyday life.

meaning and value of work. In addition, we contribute to career education for local junior highschool students by offering them hands-on
experience at our factory over a five-day period.
As in the previous fiscal year, the KOKUYOGroup conducted the Kids’ ISO 14000 Program,an effort to encourage employees’ families to takepart in environmental preservation activities intheir own surroundings. A total of 47 individuals in
27 families took part in the orientation seminar,
and were given tours of showrooms in Tokyo andOsaka. Families learned about measures to separate garbage and conserve energy, and made theirshare of environmental efforts close to home.

Overview of the fiscal year
ended Dec. 31, 2007
The leaders of activities were expanded toGroup companies in 2007 in an attempt tobroaden the reach of social contribution. A totalof 160 activities were conducted, including special classes featuring visiting lecturers atelementary and junior high schools, as well asfactory and facility tours.
In 12 of the 23 visiting lecturers conducted, we
focused on the development and popularization of
Universal Design (UD) products. In an aging society with a declining birthrate, KOKUYO hopes tocontribute to a kinder world by creating productsthat anyone can use and enjoy, and by acting to
publicize these products as widely as possible.
The factory tours, which welcomed mainly elementary and junior high school students fromsurrounding communities, gave those students a
glimpse of how familiar products from their everyday lives are manufactured, and aimed to awaken
future career interests by showing them theHere we present someof the activities weundertook to contributeto society in 2007.

Results of Social Contribution Activities
Lectures visited

23

Extracurricular classes (multiple days)

2

Independent company activities conducted15

Tours of factories and other facilities

10

Tours of showrooms

92

Events cosponsored

17

Other cosponsorship
Total

1
160

goods (notebooks, writing surfaces, scissors,
glue, pencil sharpeners, etc.) so that children in
the earthquake-stricken area would be able tostart the school year comfortably.
After the Niigata-Chuetsu Earthquake, we
contributed 500 “Kids’ Uru-Uru Packs” containing stickers, boxes to hold stationery supplies,
children’s notebooks, and more. They were handed out during recreation programs at children’scenters.
is a network organization incorporating corporations, social* Shien-P
welfare associations, NPOs, and community chests. It was

The KOKUYO Group provided supplies forthe “Uru-Uru Pack” charity packs distributed to
vicitims of the March 2007 Noto Peninsula
Earthquake and the July 2007 Niigata Chuetsu
Earthquake.
Uru-Uru Packs were a disaster relief handout
planned by the Volunteer Disaster-Relief ProjectCouncil Shien-P*, which includes the Japan
Economic Federation and disaster-relief NPOs.
The KOKUYO Group contributed 1,000
back-to-school packs containing stationery

established after the Niigata-Chuetsu Earthquake of 2004 to
support disaster relief aid and conduct verification surveys intorelief activities, and installed as part of the Central Community
Chest of Japan in January 2005. Its objective is to create aframework for disaster-related volunteer activities, and carry out onsite relief with efficient use of personnel, resources, and capital.

“Uru-Uru Pack”

KOKUYO Group CSR Report 2008 24

Social Responsibility
ReportBasic policy

PromotingDiversity

As Japan’s labor market undergoes changes dueto the aging of society accelerated by the declining
birthrate, globalization of business environments,
and the growing role of women in the workforce, inorder to remain competitive in the marketplace it isessential to create corporate systems and cultures inwhich the diverse sense of value of all personnel isrespected. In preparation for the upcoming labormarket situation, in which the children of baby boomers will be burdened with the care of their parents,
while the workforce continues to shrink due to thelow birthrate and aging of society, the KOKUYOGroup is working to create a work environment thatplaces emphasis on work/life balance, respects
diversity, and allows every employee to realize theirtrue potential.

Four Basic Themes to Promote Diversity
Establishing proactive systems• Building systems to allow flexible work styles• Adopting systems throughout the GroupA shared appreciation of the significanceof diversity• Creating hospitable workplaces• Creating workplaces that allow employees tomaximize their potential• Raising awareness in preparation for theabove paradigm shifts

Improving work/life balance• Creating a work environment that allows
employees to balance their work and home
lives

Supporting a diverse workforce• Creating a work environment that offers
opportunities to women, the disabled, andthe elderly

25 KOKUYO Group CSR Report 2008

Hiring of disabled workers*1
As an executive member of the Osaka Employment and Development Association (formerly known
as the Osaka Prefectural Association for Employmentof the Disabled), KOKUYO has been actively promoting the employment of the disabled since theestablishment of the above organization in 1949. In
September 2003, KOKUYO K Heart Co., Ltd. wasestablished as a special subsidiary employing disabled people, and the entire Group is building a work
environment that encourages active participation by
the disabled.
KOKUYO K Heart mainly undertakes the printing
duties of the KOKUYO Group, as well as quality
inspections of stationery and production of drawings
for office layout designs. The printing work is carriedout by hearing-impaired employees. They use computer-controlled printing equipment with safety
features, and are alerted to any dangers posed byfaulty printing equipment by vibrators or pilot lights.
In February 2008, KOKUYO K Heart reached its
1,500th accident-free workday.
Heartland, a subsidiary of KOKUYO K Heart, wasestablished in December 2006 and commenced
operations in October 2007. At Heartland, mentallyand intellectually disabled people lead fulfilling work
lives, engaged in the production and sale of vegetables grown through hydroponic cultivation. Throughthe production of safe and healthy vegetables,
KOKUYO contributes to the revitalization of agriculture, which has been suffering from decreasing landarea and shrinking numbers of participants in recent
years. This program is conducted under the guidance of Osaka Prefecture and with the cooperationof local farmers and NGOs for the disabled.
As of December 31, 2007, disabled people
account for 1.84%*2 of all KOKUYO Group employees.

*1 To write the word shogaisha, meaning “disabled person,” theKOKUYO Group uses the pre-war Japanese characters, implying“an obstacle,” rather than the characters used nowadays, whichmean “hindrance” and “harm,” as we believe being disabled
does not mean suffering harm, but rather overcoming obstacles.
*2 This figure represents the percentage of all people working at
KOKUYO Co., Ltd. and its consolidated subsidiaries in Japan,
including regular and temporary part-time workers as well as
full-time employees.

Employment and cultivation of local
employees at overseas facilities
In order to expand our business on a global
scale, it is necessary to employ and train the best
candidates for all available positions without regard
to nationality, age, gender or other factors. As business environments and markets become increasingly
globalized and we move toward a borderless world,
the KOKUYO Group seeks to hire and cultivate thestrongest personnel in order to boost its competitiveedge in the future.
At our eight business locations in China, the vast
majority of employees are non-Japanese, and are ofChinese or other nationality. With the goal of cultivating the necessary personnel to maintain ourcompetitiveness and advance in the Chinese market,
each year we welcome a group of employees toJapan for extended training. While working at Group
companies, they learn not only working techniques,but also the KOKUYO corporate philosophy and wayof thinking, along with the culture and business climate of Japan.
In the case of our production bases in Thailand,
Vietnam, and Malaysia, educational training at factories mostly consists of on-the-job training on relevant
production lines, but also includes trips to Japan toobserve our domestic factories, aimed at improving
the techniques and motivation of trainees.
When hiring workers for factories in overseas
locations, we demand copies of the identification
papers or electronic cards required in each country,
and confirm that hiring practices do not entail forced
or child labor.

Data

CSR
Accounting▼Scope of CSR accounting: KOKUYO Co., Ltd. and
15 consolidated subsidiaries▼Accounting period: January 1 to December 31, 2007
(Figures for January 1 to March 31, 2007 duplicate
those posted for the CSR accounting for the fiscal
year ended March 31, 2007.)▼ Accounting method: Figures posted represent thecost of putting into practice the ideals outlined in the
KOKUYO Group CSR Charter. This cost is a sum of
personnel, depreciation and other expenses. The
amount saved through cost reductions and income
from assets is subtracted from the expenses. “Thecost of construction of a management system” isderived from proportionally distributed head officerelated costs.
It should be noted that the accuracy of calculationsof costs for each activity does not necessarily represent the actual distribution of management
resources.
▼Guidelines for reference: “Environmental Accounting
Guidelines, FY 2006 edition” published by Japan’s
Ministry of the Environment

Since 2004, the KOKUYO Group has been conducting CSR accounting, tallying and publicly
announcing the expenses incurred in connection to
the five areas elaborated in the KOKUYO Group CSR
Charter (Customers, Local Communities, Environmental Protection, Business Activity, and Human
Rights; see page 18), by which the Group’s CSR

activities are guided. For CSR accounting, we strive
to calculate only the differential cost*1, as in the caseof the environmental accounting which we have been
carrying out since 1998.
Regarding the CSR accounting process, we havebeen aware of issues such as improving accuracy andmethods of calculations, as well as estimating theCustomers

Local Communities

Environmental
Protection

Corporate Activities

Human Rights

KOKUYO’s
Responsibilities

Providing products andservices from the viewpoint of customers

Building vibrantcommunities

Making efforts to solve
global environmental
problems

Conducting corporate
activities fairly

Placing emphasis on
human rights in all
corporate activities

Cost of
Activities¥404,873,000¥64,242,000¥615,400,000¥143,527,000¥47,665,000

Improving customer
satisfaction￥331,343,000

Societal contributions￥2,939,000

Preventing pollution￥78,188,000

Compliance promotion￥10,237,000

Revitalizing local
communities￥3,760,000

Preventing global warming￥—16,010,000

Fair transactions withbusiness partners￥27,750,000

Improving employee
satisfaction￥13,118,000

Proper maintenance ofcustomer information￥10,684,000
Leading customer evolution￥43,164,000

Breakdown ofMain Costs ofActivities

Construction of amanagement system￥19,683,000

Community greening*2￥46,368,000
Disaster relief￥1,334,000
Construction of amanagement system￥9,842,000

Saving and recycling resources￥227,881,000
Procuring and providing
eco-products￥7,159,000
Investigation and research
into environmental
engineering￥172,265,000
Environmental communication￥25,465,000*1 Cost differential: Cost with expenses not directly

related to CSR objectives deducted whenever possible. It is declared as a difference from regular total
costs incurred, isolating the amount the KOKUYOGroup puts toward CSR activities as accurately as
possible.
2* As it is difficult to calculate “community greening”
figures for the accounting period, we have provided
the estimated value based on activities in recent
years (average for the year ended March 31, 2005
to the year ended December 31, 2007).

effect of CSR activities. Increases in autonomous
activities conducted by Group operating companies
have resulted in a necessity for placing greater
emphasis on finding solutions to these issues. We will
make efforts not only to announce the results as mere
figures, but also to employ them as part of the information used to drive the Group’s management policy.

Communication withstakeholders￥68,927,000
Raising employee
awareness￥930,000
Construction of amanagement system￥35,683,000

Equal opportunities andpersonnel training￥22,606,000
Workplace safety andsanitation￥2,100,000
Construction of amanagement system￥9,842,000

Construction of amanagement system￥120,452,000

Related pages

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P. 24

P. 17-22

P. 15-16, 23

P. 25

KOKUYO Group CSR Report 2008 26

About the front cover design
In 2008, the KOKUYO Group started activities aimed atpromoting diversity in the workplace and began labelinginsufficiently environmentally friendly products with the Eco X(“Non Eco”) mark. Accordingly, the front cover shows the facial
expressions of a diverse and energetic workforce, as well as apattern displaying the percentage of products bearing the Eco
X mark in the stationery and furniture lines. This illustrates ourstrong intention to continue working to reduce the number of
products with this mark in the coming years.

Published by
Corporate Social Responsibility Division
Editor/Contact

Group PR Division
Kokuyo Business Service Co.,Ltd.
6-1-1 Oimazato-minami, Higashinari-ku, Osaka 537-8686, Japan
200805A01DN

2008-090