KOKUYO GroupCSR Report2013Contents
Top Interview

2

Introduction of the KOKUYO Group4

The Future of Tohoku

12

CSR Management

29

With Customers

46

With Employees

55

With Business Partners

63

With Local Communities

66

With the Global Environment70

CSR Data

86(Organizational governance)(Consumer Issues)(Human Rights/Labor Practices)(Fair operating practices)(Community involvement and development)(The environment)

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KOKUYO Group CSR Repor t 2013

Top Interview

The year 2013 is the 108th year since KOKUYO started operations. Our ability to succeed over more than a century is theresult of the constant efforts of everyone at our organization to maintain KOKUYO's reputation as the “honor of Japan.”
Looking ahead to our next century, we are extending our operations to Asia to advance to a new stage of growth. We arerededicating ourselves to the importance of the concept of “honor” as we continue to move forward vigorously to earn
recognition as “the honor of Asia.”

The Chain Reaction from a Commitment to “More” Is the Origin of New ValueKOKUYO's corporate philosophy is “enrich the world through our products and services.” In the past, growth was theobvious goal. However, today our markets in Japan are mature and the division of roles in the value chain is progressing.
In this environment, it is difficult for our employees to incorporate this philosophy in their activities. All employees must ask
themselves how their output contributes to society. Determining the answer to this question and reflecting this answer in
our work will create the energy to take on even greater challenges. Merely using the value chain to hear about customers'
problems is not enough. I want our people to find and study these problems themselves. This process will enable us tocome up with ideas for how we can do “more” for customers. Our customers will thank us for these ideas and then we canseek the next “more.” This repetitive cycle is the essence of our business activities.

The Pursuit of Japanese Creativity

To meet customers' demands for “more,” KOKUYO started a furniture business
about 50 years ago. In 1969, our entire Osaka Head Office building became a “liveoffice” as we created a “living experimental building that looks ahead to businesssystems of the future.” In the spring of 2012, we established the Creative Lounge
MOV in Tokyo's Shibuya district to show how a working area can enable people todo their jobs in innovative and creative ways. The lounge creates new working
styles and value by smoothly bringing together people of different ages,
nationalities, job categories, and industries. KOKUYO has determined to use these
new ways to work and other fresh ideas to produce the next generation of value. Various actions are under way toaccomplish this goal. Offering ideas for working styles that incorporate Japanese creativity can produce value thattranscends individual organizations and business sectors and allow companies to start new businesses. I want these ideas
to eventually be used worldwide. I believe that providing support to companies for taking on this type of challenge as well
will be an important role of KOKUYO.

2KOKUYO Group CSR Repor t 2013

We Must Not Simply Transplant Japan to Growing Asian Markets
For more progress over the next century, KOKUYO has started to build a foundation in Asia for a new stage of growth.
Extending operations to Asia will allow us to discover a “more” that does not exist in Japan and give our employees theopportunity to aim for a new types of “more.” The value needed to satisfy customers, which we call “more,” differs
significantly in the mature markets of Japan and the growing markets of Asia. We cannot succeed in Asia by simply
transplanting values, work practices, and mind-sets from Japan to this region. We must work with our overseas employees
to listen carefully to customers in other countries. A thorough understanding of customers' requirements and values isimportant to identify the “more” that will be truly useful. For example, our measures to produce notebooks for Vietnam in thebest way for this market earned us certification as a high-quality, made-in-Vietnam product. In India, the staff of KOKUYO
Camlin Ltd. and people from KOKUYO in Japan have combined their know-how to start numerous initiatives. One example
is the establishment of an information network system to support activities like processing orders from wholesalers andstationery stores. Using this system raises distribution speed, keeps items in stock, and allows identifying customers'
needs. In China, we purchased the operations of Chinese notebook manufacturer HOT ROCKS STATIONERY (Shenzhen)Co., Ltd., and started an operating a factory in Shanghai. We can now produce more than 100 million notebooks each year
in China. In both Vietnam and China, we utilized manufacturing expertise from Japan while facing many restrictions andissues associated with operating in these countries. But the know-how obtained from dealing with these difficulties amid therestrictions is the basis for growth. We will continue to move forward with our workforces in these countries to achieve a“more” that is deeply rooted in each region.

Aiming for the “Honor of Asia”
KOKUYO significantly altered its corporate governance in 2010 to implement CSR
management amid the rapid changes taking place in the world. As company
president, I take very seriously the situation in the past that led to complianceviolations. We have once again examined the sustainability of KOKUYO's
management. One step was having individuals from outside our Group make up the
majority of our directors and corporate auditors to guarantee transparency indecision making and increase the breadth of knowledge and experience in ourmanagement. In addition, we separated the roles of supervising management andconducting business operations.
Achieving the growth and development of every employee is vital to the growth of a company. We are building a frameworkthat allows employees to realize themselves that their value is increasing year after year. Everyone from new employees tomanagers must be aware of the importance of learning. KOKUYO has a training program that uses a medium-term
perspective and places particular emphasis on developing global leaders. Sincerity is the most-important value of all withrespect to sustaining the growth of a company. KOKUYO has placed priority on sincerity since its inception. We define
sincerity as “focusing all our energy on thinking of others from their standpoints, understanding what others want, and thencreating the best response in each case.” This involves more than merely “results” that are visible. We will settle for nothing
less than “sincerity” that encompasses the entire process used to achieve these results. We used this thinking to establish
a new global KOKUYO Group Code of Conduct with the aim of giving everyone from executives to employees a firm
commitment to compliance. Furthermore, we have established a KOKUYO Group Fundamental Procurement Policy toachieve mutual progress of our Group and our suppliers. By performing “sincere work” across the whole supply chain, we
can achieve true customer satisfaction, help protect resources and the environment, and grow along with the regions weserve. “Honor” is not something we decide on our own. “Honor” is a quality that we earn by consistently operating in amanner that can receive the approval of our customers and the public. This is why I want everyone at the KOKUYO Groupto be committed to sincerity with the spirit of “not yet” and “more.” Always ask yourself if you are behaving in a manner thatis consistent with “honor.” Our ability to become the “honor of Asia” will depend on the dedication of each and every
individual in our Group to the principles that have always defined KOKUYO.

3KOKUYO Group CSR Repor t 2013

Introduction of the KOKUYO Group

Mission Statement and Origin of the “KOKUYO” Name
Our Mission Statement Handed Down from the Time of KOKUYO's Founding: “Enrich theWorld through Our Products and Services”
The origins of today's KOKUYO Group trace back to 1905 when our founder, Zentaro Kuroda, opened a shop selling
covers for Japanese-style accounting ledgers. In that era, making covers for ledgers that contained many sheets of thin,
Japanese-style paper was regarded as a troublesome, low-value-added business activity. The founder of KOKUYO thought
otherwise. His view was that even work that is troublesome or bothersome, provided KOKUYO approached it with sincerity
and thoroughness, would eventually lead to the development of items with new value added. He held fast to this belief
throughout his life. Since then, under its mission statement of “enrich the world through our products and services,”
KOKUYO has focused on developing its business activities, working to raise its profitability as it becomes a company thatsociety needs, and will be the first choice of its customers.

“Honor of the Country” Inherent in the KOKUYO Name
The KOKUYO name was originally written in Japanese as a combination of the character for “country” and the character for“honor.” When KOKUYO's founder Zentaro Kuroda left his native city, he was told to “become someone who brings honor
to his hometown.” When he founded his own business, he adopted the trade name “KOKUYO” (Country“国”+ Honor“誉”) to
remind himself at all times of his mission, and the name has remained unchanged until today. Over the 100 years since
KOKUYO was founded, its businesses have evolved along with the changing times, but each and every employee is awareof his or her behavior and avoids any activities that might dishonor the Company name. At present, the KOKUYO Group is
growing from being a Japanese company to become an Asian company and is striving to become the “honor of Asia.”

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KOKUYO Group CSR Repor t 2013

History—The First 100 Years

1905

Founder Zentaro Kuroda opened the Kuroda Ledger Cover Shop

1917

Trade name KOKUYO adopted

1960

Entered the furniture business

1961

Name changed to KOKUYO Co., Ltd.

1969

Entire Head Office opened as a showroom (the origin of the experimental office and “live office”
concept)

1975

Campus brand notebooks introducedp

1982

Shinagawa showroom opened

1989

Akihiro Kuroda became President and CEO

2001

Mail-order service for office supplies launched, Kaunet established2003

KOKUYO Commerce (Shanghai) Co., Ltd., established and full-scale business operations began in
China

2005

100th anniversary of KOKUYO's founding. “Easybuy” mail-order service for office supplies introduced in
China

2006

KOKUYO Furniture Commerce & Trading (Shanghai) Co., Ltd., established2008

KOKUYO opened its “Eco Life Office Shinagawa,” an eco-friendly office in the Shinagawa area of Tokyo

2010

KOKUYO Vietnam Trading Co., Ltd., established

2011

Implementation of corporate governance reforms, introduction of the executive officer system.
Completed acquisition of shares of Camlin Limited and changed its corporate name to KOKUYO Camlin
Ltd. Concluded business succession agreement with HOT ROCKS STATIONERY (Shenzhen) Co., Ltd.

2012

Shanghai plant of KOKUYO Commerce (Shanghai) Co., Ltd., went into full operation

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KOKUYO Group CSR Repor t 2013

Introduction of the KOKUYO GroupKOKUYO at a Glance
Aiming to Be a Company that Grows with Society
The KOKUYO Group was founded in 1905 with the aim of “Enrich the world through our products and services.” Following
the words left to us by the founder, “Profit is compensation given to us by society,” the KOKUYO Group aims to be acompany that develops with and supports society through the conduct of its principal businesses of (a) manufacturing andselling stationery products, including writing utensils and materials as well as office supplies, (b) manufacturing and sellingfurniture, including furniture for offices and public space as well as the design of office spaces, and (c) selling officesupplies online as well as selling office supplies, interior goods, and items for daily life online and through retail stores.

Stationery Business
KOKUYO's stationery business began to make covers for bookkeeping ledgers in
1908. After about 100 years, in 2012, KOKUYO introduced 400 new items, and thetotal number of items in production was about 12,000. Sales of KOKUYO's
stationery business amounted to ¥92.1 billion during the fiscal year ended March
31, 2013, thus making it the leading company in the stationery business in Japanby a wide margin. KOKUYO's stationery items are familiar to virtually everyone inJapan, and, as a national brand, the awareness of KOKUYO is high. Today,
KOKUYO has set the goal in the domestic market of being “the dominant andleading presence that customers continue to choose.” Overseas, KOKUYO's goal is
to grow to become the leading manufacturer of stationery products in China, India,
and Vietnam. Especially overseas, to expand sales of its notebooks, in which
KOKUYO has absolute confidence, in China, Vietnam, and India, KOKUYO is
working to secure its sales network, expand production facilities, and structure
distribution systems.

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KOKUYO Group CSR Repor t 2013

Furniture BusinessIn its furniture business, KOKUYO began, in 1960, by manufacturing and sellingsteel filing cabinets. Up to that time, KOKUYO had grown by supplying paper
products, and entering this new, completely different business posed major
challenges. However, KOKUYO was successful in entering this new market
because, in addition to offering cabinets, in line with its approach to other business,it also offered information on the techniques of storing documents. At present,
KOKUYO serves the needs not only of office spaces but also the needs ofeducational and medical institutions. Since the collapse of Lehman Brothers, themarket for office furniture has decreased in size, and the operating environment
has continued to be challenging. Nevertheless, during the fiscal year ended March
31, 2013, KOKUYO's sales in this business expanded 3.3% over the previous year,to ¥105.2 billion, and it showed its first profit in four years. For more than 40 years,
KOKUYO has experimented with the “live office” concept, opening some of its own
offices for display and demonstration. Through these venues, KOKUYO hascommunicated information on the latest trends in work styles based on ethnography(research based on the actual observation of human behavior), and this has beenhighly appraised. Looking ahead, KOKUYO plans to further evolve the live officeconcept and build on its business model, which is based on an ongoing
conversation with customers and “thinking about office space from a human-centric
perspective.”

Online and Catalog Sales and Retail Business
During the fiscal year ended March 31, 2013, KOKUYO reported sales of ¥106.4 billion, an increase of 5.6% over theprevious year in this business segment. As a result of the rise in sales and improvement in the gross profit ratio, operating
income expanded 32.6%, to ¥2.3 billion. In the Online and Catalog Sales and Retail business, the Kaunet mail and online
order business for offices offers its customers a very wide selection of merchandise, ranging from standard stationery andoffice goods to everyday items, food products, apparel, furniture, and other products. In the retail business, this segment
sells interior goods and other merchandise for everyday living. Through its ACTUS and The Conran Shop retail venues,
this business offers customers products and services to meet their demanding lifestyle tastes and needs, thus helping themto add touches of “high quality” and “inspiration” to their daily lives.

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KOKUYO Group CSR Repor t 2013

Introduction of the KOKUYO Group

Business Topics
The KOKUYO Group is dedicated to growing in Japan by creating demand while also extending its operations to othercountries in Asia. In the growing markets of Asia, we will leverage the expertise and technologies gained from operations inJapan while acquiring knowledge about these markets. We will use this approach to make steady progress toward ourgoal.
From the “honor of Japan” to the “honor of Asia”
Our objective is to supply products and services that can enhance the fulfillment and creativity of the jobs and lives ofpeople in the regions where we do business. We want the KOKUYO Group to play a role in the further advancement of therapidly growing economies of countries in Asia.

Progress toward Becoming the “Honor of Asia”

China
Opened Showroom in Shanghai
KOKUYO Furniture has opened a flagship showroom in Shanghai, which is its
largest showroom outside Japan. The facility also has a “live office.” For its
innovative concept, lighting design and environmental measures, the showroom
received a prestigious Interior Space Design Award Grand Prize at the China Bund
Design Awards.

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KOKUYO Group CSR Repor t 2013

Operations start at the Shanghai factory of KOKUYO Commerce (Shanghai)
KOKUYA started operating a factory in Shanghai after acquiring the operations of a
Chinese notebook manufacturer. The factory produces a variety of notebooks withperfect binding and has an annual output capacity of more than 100 million units.

India

Support from KOKUYO Camlin for an Indian version of Star of the Giants
KOKUYO Camlin is restructuring its entire business in order to advance
management. As a part of this initiative, the Company co-sponsored in the
production of Suraj the Rising Star, a remake of the popular Japanese animatedprogram titled Star of the Giants.
Story: Based on the manga “Star of the Giants” published by KODANSHA LTD.
© IKKI KAJIWARA,NOBORU KAWASAKI/KODANSHA,RISING STAR COMMITTEE. All Rights
Reserved.

Vietnam

KOKUYO VIETNAM products receive Vietnam High Quality Product Certification
Campus brand notebooks and other products made by KOKUYO VIETNAM havebeen certified as Vietnam High Quality Products. These products are selected
every year based on questionnaires returned by consumers. In the stationery
category, KOKUYO VIETNAM was the only Japanese-affiliated company thatreceived this recognition.

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KOKUYO Group CSR Repor t 2013

Singapore
Opened Showroom in Singapore
KOKUYO Furniture has established a showroom in Singapore to function as abranding base for the office furniture market in Asia. Operating this showroom willraise awareness of KOKUYO among global and local companies in this region andhelp build partnerships with design offices.

ThailandKOKUYO-IK completes its second factory
KOKUYO-IK (THAILAND) started operations 15 years ago as the first overseas
KOKUYO factory and a producer of resin products. To become an even more
important part of the global manufacturing network of KOKUYO's stationery
business, this company has added a second factory that will further enhance its
technological capabilities and production capacity.

Japan
The Creative Lounge MOV opens
KOKUYO Furniture started operating Creative Lounge MOV in April 2012. Locatedin Tokyo's Shibuya Hikarie, this members-only office space is designed for people
who work in a creative style and people who work in teams. There are no
restrictions regarding organizations, nationalities and age. People from manybusiness fields and backgrounds can gather to share their experiences andknowledge. The aim is to use this innovative approach for working in order to create
new forms of value.

Opened NEXT OFFICE, a “live office” in Kasumigaseki
KOKUYO Furniture has opened NEXT OFFICE, a “live office” in Tokyo's
Kasumigaseki. One aim is to take team communications to a higher level. Thisactual operating office is also structured to create value by using new forms of links
with customers and external business partners. Cloud technology is used tofacilitate communications with no restrictions involving time or place. The result is
an innovative idea for new way of working that produces strong bonds within a
team.

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KOKUYO Group CSR Repor t 2013

A new KOKUYO Group Code of Conduct has been established in orderto ensure that all business activities comply with laws and regulations aswell as ethical standards. In addition, to reflect the increasingly global
scale of operations, the KOKUYO Group Code of Conduct Handbook
has been prepared. This publication includes supplemental information
about business customs, laws and other subjects in different countries
and regions. Information meetings were held overseas using thishandbook.

The annual meeting of the International Monetary Fund and World Bank
took place in Tokyo in October 2012. Participants received Harinacs
staple-free staplers from KOKUYO S&T. Everyone was very impressedwith this innovative product, which helped raise global recognition of the
KOKUYO brand.

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KOKUYO Group CSR Repor t 2013

The Future of Tohoku

Participants in the Dialog

We invited some of our stakeholders to discuss the following questions from the perspectives of “learning” and “working.”“What contributions can KOKUYO make that are suited to the nature of its business and other characteristics as the
Tohoku region moves toward the future? What scenarios can we write?”

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KOKUYO Group CSR Repor t 2013

What will an affluent life be like in the year 2030? What will we do to make this future life a
reality?
Shimizu: Why should we be thinking of the recovery of the Tohoku region centered around the year
2030? One reason is that I think we want to look for ways to provide real assistance for therecovery by developing a long-term vision for the region. Another reason is the need toconsider recovery from the perspective of constraints presented by the natural environment.
Mr. Ishida, from your viewpoint as a specialist in environmental matters, could you elaborateon that point?

Ishida: At present, we are faced with a number of risks. These
include the exhaustion of resources and energy, thedecline in biodiversity, the allocation of water and food,a rapid increase in population, and climate change. If
we do nothing about these risks, I believe that we will
run into limits on all these risks around the year 2030.
Therefore, I think it is extremely important to consider
what we can do from the perspective of the natural

Professor Ishida and KOKUYO haveenvironment.
been discussing future work styles for
Also, Japan imports 60% of its food. There are only
close to a year. Our discussions havebeen compiled into a book entitled “Let's
five prefectures and major cities that are 100% or more
Design the Work Style of the Future:
self-sufficient in terms of food. Four of these
The Eco-Conscious Work Style in 2030.”
prefectures are located in the Tohoku region, and mostof them have suffered severe destruction.
Under these circumstances, what must we do between now and 2030? The most-important
thing is to be affluent. How can we overcome environmental issues and constraints, not by
relying on self-restraint but as we enjoy affluent and satisfying lifestyles?

Nakagawa: As I was listening to Professor Ishida's comments, I
began to think about what “affluence” will mean in theyear 2030.
I am providing support for recovery to schools andchildren under the theme of “education.” I think that thepeople of Tohoku thus far have had the feeling thatthey had to do everything for themselves. After theearthquake, however, they accepted people from
Ms. Nakagawa is a director of Project
outside the region, and, in some respects, they have
Yui (Project Connect) and, as a partner
realized the advantages of this. By looking outside andwith KOKUYO in the “Great! KOKUYO
Project,” has cooperated in providing
talking with people outside the region, they seem tohelp for schools in Tohoku.
have realized that good things can happen as a result.
Maybe it has to do with raising children in the region,
but when the earthquake occurred, it was necessary for the names and faces of children in theregion to match. That was effective in the operation of the emergency shelters.
I think that to create an affluent society, and this is not limited just to disaster-stricken areas,
the education of children and providing places for learning must be reviewed and positioned as
the duty of adults.

Tamura: From now on, we have to proceed on the assumption that emergency shelters and towns will
have to be built so that they will operate even if the only inhabitants are senior citizens.
Compared with the time of the Great Hanshin Awaji Earthquake in 1995, at present the
number of younger people has declined to about two-thirds of the previous level. In the case of13

KOKUYO Group CSR Repor t 2013

the Great East Japan Earthquake, the number of younger generation volunteers was not
sufficient, and we called for additional help from the baby boom generation. If a disaster ofcomparable magnitude occurs in 2030, we probably will not be able to cope by drawing only onhuman resources in Japan.
Also, at the times of the Great Hanshi Awaji Earthquake and the Niigata Chuetsu Earthquake,it was possible to recover using the interest on funds received. However, now that interest
rates are extremely low, we are not able to use that recovery scheme.
With Japan's shrinking population and economy, it will be impossible to rely only on
government financial resources. In reviving the Tohoku region, I believe we will have to adopt
different approaches. It will be necessary to review the roles of government, corporations, andcitizens and find ways for them to work as a team. The people in the devastated areas will
have to rebuild their towns with their own hands using their resources and working together
with outside resources. Corporations will have to create ties with the stricken areas drawing on
their main businesses. In other words, fulfilling corporate social responsibility (CSR) will be
required.

Shirakawa: he city of Sendai had just formulated a newcomprehensive plan, but, following the earthquake,that has been partially revised. The thinking was thatrecovery will have to move forward not just in Sendai
but in the Tohoku region as a whole.
Compared with the Tokyo and Osaka metropolitan
areas, incomes in Tohoku are low. However, there isan affluence in life that cannot be measured by GDP.
Ms. Shirakawa is engaged in promoting
There are ties within the region, agricultural products
rebuilding in Sendai with citizen
are grown nearby, and fish can caught in the nearby
collaboration. She is working incooperation with the “Creating Together
ocean. This kind of affluence, which does not require
Recovery Promotion Project Researchmoney, was evident in Tohoku prior to the earthquake.
Committee,” in which KOKUYO is also
I think that economic affluence and the kind ofparticipating.
affluence that will make the region develop are
different things. I would really like to see both kinds of affluence advance at the same time. For
example, if there are new kinds useful materials, systems, and other things, we can developthese globally and use them to generate economic profits. On the other hand, I think that if,
through the collaboration of citizens of the region and NPO staff, it would be good if we could
search for a new kind of community that would not return to the past but have a different kindof affluence.

Okatake: As local companies in the region, we are engaged in arange of support activities in collaboration withgovernment organizations, NPOs, and othercompanies.
One of these is co-sponsorship support for theMichinoku Future Fund for young people orphaned by
the disaster to enable them to enter universities. The
other day, when we were discussing the dreams of the
future of young people who have received scholarships, I was shocked that there were very
few opinions regarding returning to their hometowns in Tohoku. There were just a few with thatdesire, and they were mainly interested in medicine and nursing, food, and government
service. There was no one who expressed an interest in setting up a company in their local
towns. I suddenly thought that these young people were not being shown their dreams and felt
some regrets as a local businessperson. If they cannot feel a sense of both affluence andexcitement, these young people will probably not stay in the region.

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KOKUYO Group CSR Repor t 2013

If we change our standards of measurement, we can have new aspirations. Shall we try “anew measurement standard from Tohoku” that the world can look up to?
Shimizu: I think a number of issues that we must address have emerged in our discussion, such as
education, population problems, the community, and aspirations.

Ishida: I believe that all of us have a common awareness that we want to build an affluent Tohoku
within the constraints it faces. Normally, there must be constraints on an affluent life. Humanbeings have latent desires for convenience at the same time they want enjoy various pleasuresand the natural environment. Also, as they become one with society, they want to grow anddevelop. It is precisely because there are constraints that they have a sense ofaccomplishment and the happiness that accompanies growth when they achieve some of their
aspirations.
I think the Tohoku region of the year 2030 could become the fabled “golden Japan.” Tohoku
can create a new lifestyle that the peoples of the rest of Asia will emulate and say “we want tolive like that.” Right now, there are many delicious foods available in Tokyo's Tsukiji fish
market. But, rather than go there, we want the people of Tokyo to think, “Before I die, I want togo the Ishinomaki port in Tohoku at least once and enjoy some of the delicacies from the sea it
has to offer.” We want the people of Tokyo to long for a visit to Ishinomaki.

Tamura: Basically, Tohoku is a place that has an abundance of good food. The third-largest fishing port
in the world is located there, and, rather than cook the fish, they are delicious when eaten raw,
as sashimi. However, if we decided to boil or fry the fish, that creates new jobs. The “sixth
industry” is the one that adds value through “time and effort.” If time and effort must be
exerted, then work increases and the number of human beings involved also rises.

Shirakawa: Yes, what we want to do is increase work and jobs by adding time and effort. We want to do
more than just attract factories to the region and increase work and employment; we want tofind ways to add value through the exertion of time and effort.

Ishida: Even though hand-wound clocks are occasionally inaccurate, they cost more than extremely
accurate quartz clocks. Even though they have to be wound up, and that means time andeffort, people believe the value of hand-wound exceeds the time and effort needed to windthem. To create affluence within constraints, we have to change the standards ofmeasurement.

Tamura: I think we have to change the standards ofmeasurement for learning and working. Some
examples are hiring females to work as firefighters todeal with the decline in the number of young people in
the population, or introducing fire hoses that evensenior citizens can use to extinguish fires. We have tochange our ways of thinking.
In Osaka, there seem to be two standards ofmeasurement (judging from the way friends greet eachother): “Are you making any money?” and “Are you
finding that interesting?” When there are multiple
standards of measurement, there are many cases
where this is a saving grace. I would really like to findanother standard of measurement for Tohoku.

15

Mr. Tamura is working on a wide rangeof support efforts at the Reconstruction
Agency and is also participating in the
Joint Creation Reconstruction Promotion
Project Research Committee. Starting
immediately after the earthquake, he
has advised KOKUYO regarding its
recovery supply activities.

KOKUYO Group CSR Repor t 2013

Ishida: That is what CSR is all about. We have started to measure corporate value using standards ofmeasurement other than economic value.
If we are given new standards of measurement, industries as we have known them thus far
could be completely transformed. For example, what about a measure of work and life
together? In Japan in years gone by, people used the time between their agricultural chores toraise their children and prepare their meals. We do not want to return to those days, but weneed to evolve our lifestyles.

Yatsuka: “Work” and “life” are different things, but viewed from the perspective of “lifestyles,” they are
the same, right?
Once I spent four days in a Zen temple. Every day, over and over, we cleaned the temple,
meditated in the Zen cross-legged position, and read from the Buddhist sutras. Vegetables
were grown on the temple grounds and we obtained rice from local farmers. When we visited
someone, we took rice along. This lifestyle, which was largely self-sufficient and complete andflowed in a cycle, had been going on for more than 1,000 years.

Ishida: The lifestyle at a Zen temple and our daily lifestyles are completely separate today, but, if wethink of them on the same foundation, that becomes a new sense of values. If we put work andlife together, then it becomes necessary to do away with the idea of an age-limit system for
retirement. There is no age limit in the primary industries, and, as you know, there are many
people over 70 years of age who are still working and in good health. My own work style has
been to change occupations every 10 years, unrelated to any age limit. Even if you reach 60 or
more, that does not mean that life is over.

Tamura: Under standards that have been used so far, people were only required to work in full-timejobs. However, one method would also be to create small jobs that take up only two or threedays a week or require short working hours and pay the employees several tens of thousandsof yen. There are workplaces that could create work like this, even in the region affected by theearthquake. People who want to make more money can take several of these jobs. The more
sources of income they have, the greater their peace of mind. I would really like to create newframeworks for this new work style, where working people would feel they were not losing
something, and it would be realistic from a business perspective.

Nakagawa: That would make it easy for women to work and raise their children, wouldn't it?
That might turn into a new Japanese-style work sharing arrangement.

Okatake: There would be merits from the company's point of view, too. Since there is considerable landin the Tohoku region; even in Miyagi there are greater distances than in Iwate and Fukushima.
By signing employment contracts with people in the region, it would be possible to develop
businesses that are close to their regions, just as such businesses have developed in milkbased products and cosmetics in other parts of Japan.

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KOKUYO Group CSR Repor t 2013

We want to create a “place for learning” and a “city for learning” that will broaden our
possibilities as we enjoy ourselves.
Shimizu: To create a workplace of that kind, what sorts of places for learning and education arenecessary?

Nakagawa: I think I would like to have the kind of place that would
draw on the basic academic skills we learned inschool. Schools are like second homes. I want tocreate the kind of environment that is a place for living
and not just studying. To do that, it will be important tofirst create a model school. Then, so that members ofsociety can create their education and make choices
freely, I think we should change the country's
educational system.

Ishida: We need schools for adults, don't you think? Schools for cooks and schools where people canlearn technical skills.

Tamura: It would be good, too, if adults could attend the schools at night. If we can provide such
schools, the nature of the blackboard and desks will change.
Also, we would like to think about new kinds of houses and ways of living. In the United States,
where I paid a visit at the end of the 1990s, in housing for low-income persons, there wererooms set aside on the first or second floors for job-training purposes. If the residents did notattend the program that was offered, they lost their qualifications for living in the housing. In
Tohoku, public reconstruction housing has been built in various parts of the region, but all thathas been done is to provide low-rent dwellings, and there are no further plans going forward. I
think it would be a good idea to also build “schools for adults” in the housing projects.
However, in reality, separate projects are under way with the Ministry of Education, Science
and Culture in charge of “learning,” the Ministry of Health, Labour and Welfare in charge of“working,” and the Ministry of Land, Infrastructure, Transportation and Tourism taking chargeof “living.”

Shirakawa: That is exactly the reason why we are looking to corporations. For example, if it were
KOKUYO, we would like to see them create school-like spaces where people who areinterested in stationery and related items would congregate together, conduct their activities,
and study about these items.
Because of the effects of the earthquake, nothing has been done related to the “Museum City”
plan originated by the city of Sendai. This Sendai proposal was to have places for learning invarious parts of the city, not limited to art or other kinds of museums. The idea was to locate
places of learning in parks, in post offices, and in one corner of shopping areas. In otherwords, just about everywhere, the city would be a place for people to broaden their knowledge
and possibilities while enjoying themselves. I would like to see this plan put into action.
With every one of the same mind and heart, the reconstruction will proceed and the future of
Tohoku will come into being through collaboration among citizens, government agencies, andprivate companies.

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KOKUYO Group CSR Repor t 2013

Recovery is proceeding as people have a unity of intentions, and residents, governmentorganizations, and companies are collaborating to build Tohoku's future.

Tamura: Reconstruction is a series of meetings. Reconstruction will move ahead when we can reach aconsensus. If we cannot reach a consensus, houses will not be built, towns will not be
constructed, and reconstruction will not happen.
As you know, depending on the positioning of tables and chairs, the flow of meetings canchange. Real results are needed and that will require support for meetings to enable
participants to reach a consensus smoothly and some kind of framework that makes it possible
for people in remote areas to participate also.
What companies can provide is not confined to things and labor. Every company should
provide support based on their respective main businesses. Sometimes they should
experiment with ideas and plans that are new to Tohoku as they draw on their businesses.
In towns where the residents have held discussions, reached a consensus, and beensuccessful in reconstruction, former residents come back to live there. You know, their attitudeis that “we made this reconstructed town ourselves, and we will clean it up ourselves, too.”
Rather than leaving things up to the local governments, the residents must build the towns,
even if it is laborious and takes time.

Nakagawa: In New Zealand, after the major earthquake there, governments acted only as facilitators anddid a thorough job of collecting the opinions of the town residents. As a result, the opinions of
the residents were reflected in the reconstruction. Therefore, people were persuaded and gave
their active cooperation to the reconstruction.
However, in Japan, even if comments of the public reach the government, it is usually only
about 100. In New Zealand, about 100,000 comments reached the government's ears. It
seems that either governments in Japan have no skills in facilitation or they think it isunnecessary. I believe companies should play the role of facilitators.

Yatsuka: If we change our perspective and make “working” and“learning” a part of “lifestyles,” I think more possibilities
will spread out before us.
Some people have the impression that adopting newthings and new values means creating something that
does not yet exist. However, we can make things
interesting and fresher by making new combinations ofexisting things and values. For example, let us think
about combinations of time and space. I think that if the good things about Tohoku that havebeen handed down through the ages are combined with new standards of measurement, thiswill help to realize lifestyles that are affluent in the true sense of the word.

Okatake: In listening to everyone's comments, I had the feeling that we have come up with newperspectives and concepts in our dialog today. As was mentioned regarding support formeetings, there are other ways of offering assistance than providing desks and notebooks. It
will be important for us to tackle new challenges, as we apply new standards of measurement
and feel a sense of excitement and enjoyment. As we move toward the year 2030, I would likefor us to create new values so that the children who will inherit the Tohoku of the futureand theadults of Tohoku can have hope.

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KOKUYO Group CSR Repor t 2013

This dialog was held in the research office of Professor Ishida of Tohoku University. This office is also a showroom where examples of “Nature
and Technology,” are on display to enable viewers to learn from nature. Also on display are models used for explanations and panels showing
photographs taken by children who were affected by the earthquake as well as written messages. The dialog participants viewed these items on
display and were stimulated to ask questions, and this, in turn, led into a lively discussion during the dialog.

In Conclusion“What contributions can KOKUYO make that are suited to the nature of its business and other characteristics as
Tohoku moves toward the future? What scenarios can we write?”
For KOKUYO, which is a company that continues to create tools and spaces for “people who are working” and“people who are learning,” this is a major theme. Based on the comments made during the dialog, I believe that theparticipants taught KOKUYO some things about what contributions it can make. These included “This is an
opportunity to create new standards of measurement,” “This is the stage of challenge when we should think about
what Tohoku-life affluence should be, as we rethink “working” and “learning” from the perspective of “lifestyles.”Going forward, as we move toward a future characterized by a Tohoku-like affluence, we will continue to think about
this major theme as we gather many opinions and views. In closing, I would like to express my thanks for these
excellent opinions and hints.
Masako Teramoto CSR and Environment Management Group
Corporate Administrations KOKUYO Co., Ltd.

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KOKUYO Group CSR Repor t 2013

The Future of Tohoku

A Single Notebook Puts Smiles on Children's Faces

With the collaboration of many people from stores in the Tohoku region, education committee members, newspapers, andNPOs, KOKUYO is holding a continuing series of Deco-Notebook Workshops. More than 1,000 children have participatedin the workshops, and all have shown us smiles of delight.

The Power of Notebooks
After the earthquake, we visited local government offices and schools and offered various articles, such as notebooks,
writing materials, and furniture. During these visits to earthquake-stricken areas, we came into contact with an unexpected
way of using notebooks. Notebooks have been made available in volunteer centers, emergency shelters, public facilities,
and elsewhere. People who experienced the earthquake and volunteers who came to the stricken areas wrote down theirthoughts, including what their real experiences and feelings were, messages of encouragement, thanks for the assistanceof volunteers and others, in a single notebook. This made us realize once again the power of notebooks and writing paper.
* Related information: Making Children Smile through Writing and Drawing

Relieving Stress by Writing and Drawing
KOKUYO's “Deco-Note Workshops” have the theme of encouraging the children of the Tohoku region to become cheerfulagain through writing and drawing (“Hang in There Children of Tohoku. We Hope You Will Cheer Up by Writing andDrawing”), and they involve having children use marker pens and seals to decorate the covers of their Campus notebooks.
These workshops started from the idea that creative activities, such as “writing down words” and “drawing pictures,” help torelieve stress and from the desire to have the children write down their present feelings in their diaries and exchange
notebooks and use this as a basis for future growth and development. Children who attend these workshops use suchmaterials as many types of seals, colorful marking pens, and masking tape with cute patterns to exercise their creativity
and decorate the covers of Campus notebooks that then become a kind of work of art. Children become absorbed indecorating their notebook covers, and the one hour spent in the workshop goes by very quickly. As the children leave with
their very own “one-of-a-kind notebook in the whole world,” they smile radiantly saying things like “that was fun” and“please have another workshop.” Some of the children turn around several times on their way home to say “thank you” over
and over. Some of the children also made new friends at the workshops.

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KOKUYO Group CSR Repor t 2013

Boys also participate in the workshops.

Even the faces of sales personnel justEveryone has completed their own “one-naturally break into a smile.

of-a-kind notebook in the whole world.”

An Opportunity to Think about Why Employees Are Working
Beginning in August 2011, KOKUYO began holding workshops, first in Sendai andthen later once every two to three months in Aizu Wakamatsu in Fukushima
Prefecture, Yamada-cho in Iwate Prefecture, Minami Soma and Nihon Matsu in
Fukushima Prefecture, and Natori in Miyagi Prefecture. These workshops are
conducted by KOKUYO employees acting as volunteers, who are hoping to
express their gratitude to the people of the Tohoku region and assist them in someway. Through these activities, KOKUYO personnel are experiencing firsthand theits Corporate Philosophy statement, “Enrich the world through our products andservices,” and this activity offers them the opportunity to discover why they working.

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KOKUYO Group CSR Repor t 2013

Children exclaim “Eh!?” when they hear the announcement “you have
five minutes left” from the workshop staff. However, we staff members
are relieved because, judging from the enthusiastic reaction of thechildren, we think “they really enjoyed the workshops.”
I know there are difficulties we face that the children cannot know about,but the children we meet in these workshops are energetic and theireyes are almost shining as they grapple with their notebooks. This is anactivity we are conducting because we want the children to be energetic
and happy again, and we receive renewed energy ourselves.

Go Hoshi
KOKUYO Corporate Communications

Just after the earthquake, I heard several comments that impressed me.
“Even when children seem to be bright and happy, they may just be
putting on a show before adults, and actually stress is building up in
inside them.” “There are cases where writing and drawing can relievestress.” These comments gave us the idea for starting the “DecoNotebook Workshops.” Especially in Fukushima, where children could
not play outdoors, stress was building up. Many children stayed at home
Chie Sakurada
and spent much of their time playing games. The Deco-Notebook
Marketing Strategy OfficeWorkshops delighted children because they allowed children to stay
KOKUYO Tohoku Sales
indoors and play with their friends. All that is needed is a notebook.
Expressions of gratitude from parents and guardians included “It has been a long time since I saw my child sohappy and completely engrossed in something.” “We feel apologetic that, for our own reasons as parents, wecannot take refuge somewhere else with our children; that is why we are truly grateful for the support of you
people from KOKUYO.” Just one notebook can make spirits brighter, communicate thoughts, and warm
hearts. And it is so in keeping with KOKUYO's main business.

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KOKUYO Group CSR Repor t 2013

The Future of Tohoku

Design Workshop in a Multipurpose School Facility
KOKUYO presented a workshop on the theme of “Contributing to Recovery in Tohoku” with Waseda University. The
necessary elements for schools and government office buildings were determined through fieldwork and interchange, and a
proposal was submitted for a “Multipurpose Facility for the Recovery Zone.”

Consideration of a Multipurpose School for Tohoku Recovery
In response to the issue posed, “What can KOKUYO do to help in the recovery?,”
KOKUYO decided to sponsor this workshop with Waseda University which had
been conducting a number of activities related to recovery in Tohoku. In theprocess of devising solutions from the students' perspective to the various issues
related to recovery, KOKUYO offered its know-how and supported the students withadvice based on its experience.

Presentation to residents of MatsushimaTown

The Theme: Creating Futuristic Multipurpose Facilities Centering around Schools fromTohokuIn response to the issue posed to KOKUYO, namely, what can it do to contribute to“Recovery in Tohoku,” we thought solutions from a broad perspective were called
for and not just solutions from the perspective of citizens of society. Working
together with the “Professional Workshop,” which is an activity at Waseda
University and involved having companies (citizens of society) and university
students take initiatives in devising solutions, we took the students' perspective into
consideration and considered and made proposals for multipurpose facilities
centered around the schools in the recovery areas.
As a result of the Great East Japan Earthquake, the roles of schools in regional
communities and as bases for preventing disasters were recognized, and what is required is to upgrade their functions not
only as schools but their other functions as well. Working together with six students in two teams and looking forward totheir ideas based on flexible thinking, we prepared a proposal for a model facility at the Matsushima First Elementary
School in Matsushima Town in Miyagi Prefecture. We went beyond desk research and performed fieldwork as well, and23

KOKUYO Group CSR Repor t 2013

surveyed conditions at the time of the disaster, the current state of the community, and requests of local government
entities, residents, and schools. After working on this for three months, we gave a presentation to Matsushima Town andthen reported the results in person to Dr. Kaoru Kamata, president of Waseda University, and Mr. Hidekuni Kuroda,president of KOKUYO Furniture.
Proposal 1: Title: “Everyone's Health Plaza”
Under this proposal, facilities, principally for food and health, would be established in the same location. Cafeterias andsports facilities would be given additional functions as headquarters for dealing with disasters. Since people of many
generations would use these facilities together, interchange would take place on a daily basis, and the aim would be todevelop relationships that would facilitate mutual assistance in time of emergencies.
Proposal 2: Title: “Matsushima Children's Kingdom”
Under this proposal, an interchange center mainly for children would be added to the facilities. With space mainly forinterchange among children and senior citizens, the proposal calls for the participation of residents in teachingsituations. In time of emergencies, this space would serve as a first aid center and as housing for senior citizens.

Implementing Proposals that Match the Realities of the Stricken Areas
As a result of this workshop, we were able to learn about the state of the stricken areas and a portion of the issues they
faced. Looking ahead, the ideas we developed will be used in making proposals to schools in the recovery areas. We
would like this to lead to the implementation of facilities that match the realities of the stricken areas.

Many students participated in the workshop, from various university
departments and from different classes. As we listened to the students'
ideas carefully, we developed an interface with the stricken areas andthought in detail about how we could convey our proposals persuasively.
In the end, we were able to provide persuasive proposals to Matsushima
Town, the students, and KOKUYO. Through the single-minded initiativesof the students, we again felt firsthand the importance of standing face
to face with our customers.

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Satomi Aizawa
TCM Marketing Strategy Department
KOKUYO Furniture

KOKUYO Group CSR Repor t 2013

The Future of Tohoku

IINE! Project2012
Through the KOKUYO Fair 2012, volunteer members launched the “IINE! Project2012,” and after about a year, in October
2012, we provided “a place for learning” to the Ishinomaki City Ayukawa Primary School.

We Want to Deliver the Many Words of Sympathy Received from Customers.
The “IINE! Project2012” was launched by volunteer members from among
KOKUYO employees with the aim of “maintaining the high motivation of employees,
communicating value accurately, and having customers enjoy themselves” at the2012 KOKUYO Fair.
After making our way through various concerns and issues, we decided to take theapproach of communicating the value by having staff members using iPads toactively give explanations to customers and receive (mileage) points as theirexpressions of sympathy. Then, on the day of the fair, to be sure we caught all theexpressions of sympathy, we deployed iPads in 38 locations, and had a total of about 80 “Great! Man” KOKUYO staff
promoters attend the fair. Some of the comments we received from customers were, “The staff members giving the
explanations did a good job, and I enjoyed it” and “The atmosphere created by the staff members was friendly, and theenjoyment was communicated to the participants.” We received a total of 103,915 points and converted these to cash, andthen began activities aimed at providing “a place for learning” to the children of Tohoku.
* “Iine” in Japanese expresses approval of actions and words

Words of Sympathy for the Children Who Will Create the Ishinomaki of the Future
Selection of Ishinomaki City Ayukawa Primary School
After the fair was over, we held many discussions among those staff members who were stationed in Tohoku and the staffof KOKUYO Tohoku Sales to determine what kind of assistance was needed and what KOKUYO could do to assist. What
was important and emphasized in these discussions was that the assistance should not be one-sided, but that we should
get close to the people of Tohoku and provide assistance that they really need. To do this, we conducted interviews withNPOs and other organizations that were engaged in providing hands-on assistance in the region. In total, we talked toabout 13 organizations over a period of three months. As a result, we came to the conclusions that the most-urgent andmost-important theme for recovery in the Tohoku region was “providing places where the children can learn and play.” Wethought that providing places where the children, who will become responsible for the recovery of the region, can feel atease as they study was just the mission that KOKUYO could perform. In providing these places, we received backup from25

KOKUYO Group CSR Repor t 2013

the Ishinomaki City Education Committee, and, together with Project Yui (a general incorporated association), went on toprovide hands-on assistance to schools in the region by redecorating two rooms in the Ishinomaki City Ayukawa Primary
School.

The Ayukawa Primary School is locatedProject Yui is a general incorporated

on the Ojika Peninsula.

association that is helping the children of
the region to receive instruction inschools.

Establishment of the Classroom Concept
What we emphasized when creating the classrooms was to design spaces just theway that everyone at the Ayukawa Primary School thought was necessary. To dothis, when we drew up the space plans, we carefully selected the issues to beaddressed and placed emphasis on exchanging opinions with the primary school
teachers and students as well as the people living in the region. As a result, we
identified three issues the Ayukawa Primary School faced.
1. There were no spaces in the existing school for interfacing with the people of
the region.
2. There were no multipurpose spaces that were available for use by anyone.
3. There were no places for optimal learning where children of different classes
could study together.
The concept that was developed to address these issues was “create spaces
where adults and children of the region and school can come together as they wish
as part of their daily lives.”

Meeting to exchange opinion withteachers present

Plans were developed using sketches
that were easy for everyone tounderstand.

Creating Classrooms together with Children
When renovating the classrooms, we paid particular attention to one other point.
Even in the phase of activities where the classrooms were being designed, we
emphasized working together with teachers and students. At the end of September,
we held a workshop for painting the walls and shelves together with the children,
KOKUYO members of the project, and members of Project Yui. This was in part
because we felt that, if the children participated in the process of creating thespaces, they would develop a fondness for them and make active use of them.

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KOKUYO Group CSR Repor t 2013

Completion of the New Places for Learning
First Floor: Conference Room
We created a “multipurpose space” where tables, chairs, whiteboards, cabinets, and other furniture could be placed andcould be used flexibly for different purposes and with differing numbers of participants. We also created “lounge spaces”
that included sofas and kitchen shelves and could be used for relaxing.
Third Floor: Living Environment Room
We created a “work space” where the young children could assemble and was large enough to use for various activities.
We also created a “floor sitting space” where people could spread mats where people could sit down, relax, read, andlisten.

First floor conference room

Third floor living environment room

Opening Ceremony
At the end of October, we held an opening ceremony in the Ayukawa Primary School gymnasium for the completed
learning spaces. Students from all the schools gathered for the ceremony, and we received thanks from the principal of theschool and the students.
Afterwards, we gave explanations to the children and teachers about how we thought the rooms should be used.
Comments from School Principal Yamamoto“There are many things that human beings cannot do alone. We must thank many people from our hearts for helping andencouraging us. KOKUYO representatives have spent much of their time discussing with everyone from the Ayukawa
Primary School and the residents of this region about how to create these places for learning and make them easy to use.
As a result, they have designed magnificent learning spaces. KOKUYO has strongly cheered us onward. As good evidenceof our thanks to them, everyone, let's use them as much as we can!”Student representative expresses

School principal Yamamoto comments,

thanks to KOKUYO.

“KOKUYO has strongly cheered us
onward.”27

KOKUYO Group CSR Repor t 2013

Continuing Tohoku Recovery Assistance
We will maintain the valuable relationships that we have built with the Ayukawa Primary School and Project Yui as part ofour “IINE! Project2012.” Looking ahead, as a sign of thanks to the people who attend KOKUYO's fairs, we think that wewould like to give new shapes to our desire for recovery in Tohoku. We want to begin by using the Ayukawa Primary
School learning spaces and holding workshops and events together with everyone in the region.

The IINE! Project2012 lasted for a full year, and we made progress bygroping our way along. People from KOKUYO with many talents andstrengths assembled to do everything from planning and publicity tooperation and design. When we finally consummated the project througha series of discussions and visits to the regions, it was already October.
Going forward, we want to treasure the relationships we have built, and,with an even stronger membership in our group, we want to be evenmore useful to society and express our gratitude.

Members participating in theworkshop28

KOKUYO Group CSR Repor t 2013

CSR Management (Organizational governance)

KOKUYO's CSR Charter
KOKUYO's CSR Charter
Grounded in the founding corporate philosophy of “enriching the world through our products and services,” the KOKUYOGroup conducts business that is necessary for society, while remaining profitable and honest in its business practices.
In addition to complying with laws and regulations, we seek to maintain continuity of our business by acquiring the trust of
all related stakeholders, investors, and, of course, our customers by fulfilling our social responsibilities as a corporate
citizen.

1. Without being satisfied with the present conditions, we continue to improve the safety and quality of ourentire product line and services.
2. Strive to continually innovate society through our business operations by developing new products andservices.

1. Strive to be a trusted ‘corporate citizen’ on both regional and national levels via proactive interaction andplanning with regional communities, while respecting regional culture and customs and encouraging theiradvancement.

1. Concentrate the wisdom of each of our employees, and align the actions of our entire company in order
to assist in reaching solutions for the common environmental problems facing the world today.
2. By developing Eco Products, we strive to decrease the environmental burden over the life cycle of these
Products and to introduce new environmental engineering and green procurement techniques.
3. Contribute towards the advancement of a ‘low carbon society’ by proposing revolutionary work styles andenvironments, and decrease society's overall burden on the environment.

1. Conduct transparent, just, and free competition and business transactions while keeping sound andcorrect relations with politicians and governmental bodies.
2. In order to become a trusted company, we strive for business partner relations that are consistently fairand built upon a foundation of reciprocal cooperation, allowing for mutual growth.
3. Recognize our responsibility to increase our corporate value for stockholders, and maintain a corporate
management style that earns the trust of society through its transparency and virtue.

1. Respect the human rights of all individuals involved with or affected by all of our corporate activities. We
support work environments free from discrimination, and do not approve of child labor or forced labor
practices.
2. Strive to accept each and every employee's individual character and personal values, and become acompany where many different human resources can fully express their abilities and develop
themselves.

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KOKUYO Group CSR Repor t 2013

CSR Management (Organizational governance)

Corporate Governance
Since its founding, under its corporate philosophy of “enriching the world through our products and services,” the KOKUYOGroup has worked to fulfill its social responsibilities as a corporate citizen.

Management Policy
The KOKUYO Group, accompanying the globalization of its business activities, has positioned compliance as its mostimportant management issue. To develop its activities as one company in countries and regions where cultures and values
are diverse and laws differ, it is necessary for the Group to have a common code of conduct. To this end, the Grouprevised its KOKUYO Corporate Code of Ethics in August 2012, which it originally issued in 2001, to make it the uniform
code for the Group, and changed its name to the KOKUYO Group Code of Conduct. This code sets forth the basic
standards for conduct that all management and other staff of the KOKUYO Group must follow, whether they are in Japan oroverseas. In addition, taking account of different business customs, laws, and other matters in various countries andregions, the Group has prepared its KOKUYO Standards of Conduct Handbook and plans to distribute this to all its staff
members throughout the world. This handbook has been prepared for the seven countries and regions where the Group
conducts its business activities at the present time (China, Vietnam, Thailand, Malaysia, Singapore, Hong Kong, and India)
and explanations of the content will be provided in each of these locations.

Corporate Governance
Under its corporate philosophy of “enriching the world through our products and services,” the KOKUYO Group strives toachieve sustainable growth while maintaining harmonious relations with its shareholders. By creating and maintaining a
structure which ensures replicability and continuity of transparent, apt, and efficient business administration, the KOKUYOGroup will continue to work toward elevating its corporate governance standards.
The KOKUYO Group is a company that has an Audit & Supervisory Board. We have created a corporate governancesystem that consists of a Board of Directors that supervises the execution of business, and the Audit & Supervisory Board
that, as an entity independent of the Board of Directors, audits the duties executed by the directors. As a global company,
we strive to build corporate governance that is worthy of our shareholders' trust. To realize this goal, we work to enhance
our supervisory function, clarify the responsibilities of management at all levels, and heighten the objectivity andtransparency of business administration.

Structure of Corporate Governance Business Execution
The KOKUYO Group's Board of Directors is comprised of a total of six members, half (three) of which are outside directors.
As part of a system that is able to respond to corporate governance promptly to changes in the business environment,
directors are appointed for a term of one year. In attendance at the board meetings, along with the directors, are four audit& supervisory board members, including two outside statutory audit & supervisory board members. The KOKUYO Group
has separated its supervisory and executive functions and, in order to promote faster decision making and streamlined
business execution, adopted a corporate officer system. The Board of Directors, which assumes a supervisory function,
makes crucial decisions on such matters as Group-wide management policies and various business plans. Also, as anentity responsible for business execution, it runs the Headquarters Management Board. This board is comprised of fourGroup Headquarters Operating Officers, the head of which is the President and CEO, and its main functions are todeliberate and make decisions on issues related to the Group Headquarters. Further, issues regarding business execution
are discussed and decided upon at the Board of Directors' meetings held at respective Group operating companies.

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KOKUYO Group CSR Repor t 2013

Advisory Body for the Board of Directors
As an advisory body for our Board of Directors, we have in place a Human Resources Committee, a majority of which
consists of external members or directors. The Human Resources Committee reviews, appoints, and dismisses candidates
for director, audit & supervisory board member, and operating officer (hereinafter collectively referred to as “officers”). It
also deliberates on compensation plans, evaluates individual officers, verifies remunerations, and offers reports andrecommendations regarding such matters to the Board of Directors.

Audit & Supervisory Board
The KOKUYO Group's Audit & Supervisory Board is comprised of two full-time internal audit & supervisory board members
and two outside audit & supervisory board members who possess a wealth of knowledge and experiences in a wide rangeof fields. The audit & supervisory board members attend the Board of Directors and other important meetings to audit thelegality of the duties executed by the directors. Moreover, to ensure the effectiveness of audits, the audit & supervisoryboard members exchange opinions regularly with personnel in charge of various duties and functions, as well as have inplace a system for working closely with the Internal Audit Division and the audit & supervisory board members of the main
subsidiary companies.

Internal Audit Division
The Internal Audit Division has set up the Process Development Division—the head director of which is appointed by the
Board of Directors—and audits the Group Headquarters and affiliated companies. The Process Development Division
audits, from a Company-wide standpoint, the appropriateness of risk-management, compliance, and business operations. It
also evaluates the efficacy of internal control and reports on the audits directly to the President and CEO at the
Headquarters Management Board. It also reports of its activities to the Board of Directors at appropriate times.

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KOKUYO Group CSR Repor t 2013

Compliance Implementation
In addition to our domestic activities, the KOKUYO Group has begun education initiatives focused on compliance in foreigncountries in order to become a proper business in Asia. Based on the lessons learned from unfortunate events that haveoccurred since 2008, the KOKUYO Group's Compliance Initiatives are grounded in the intent and assumption that all
employees of the KOKUYO Group act in compliance with laws and regulations so that KOKUYO may be considered as an
upstanding and honest corporate citizen. Since 2009, we have conducted discussion-type compliance training, and starting
this fiscal year, we will sequentially expand these training initiatives into our overseas locations, starting with China.

Compensation of Directors and Audit & Supervisory Board Members
Applicable directors andAudit & Supervisory
Board members

Position

Total compensation(Millions of yen)

Directors (excluding independent directors)

4163

Independent directors

3

29

Audit & Supervisory Board members (excluding outside
Audit & Supervisory board members)

3

31

Outside Audit & Supervisory Board members

313* The number of applicable directors and Audit & Supervisory Board members includes one director and two Audit & Supervisory Board
members who resigned their positions at the end of the General Meeting of Shareholders held on March 29, 2012.

* One-half of KOKUYO's Board of Directors qualify as independent directors under the stipulations of the Tokyo Stock Exchange.

32

KOKUYO Group CSR Repor t 2013

CSR Management (Organizational governance)

From left to right: Nobuyuki Oneda, Masa Matsushita, Akihiro Kuroda, Yasuhiro Kuroda, Takeharu Nagata, and Hisao Sakuta

Members of the Board
Akihiro Kuroda
Representative Director of the Board, President and CEO
April 1972
December 1977
August 1989
March 2011

Joined KOKUYO Co., Ltd.
Director of the Board, KOKUYO Co., Ltd.
Representative Director of the Board, President, KOKUYO Co., Ltd.
Representative Director of the Board, President and CEO, KOKUYO Co., Ltd. (to present)

Directors' Meetings Attended
Attended all 13 sessions

Yasuhiro Kuroda
Representative Director of the Board, Executive Vice President
April 1975
June 1991
March 2010
March 2011

Joined KOKUYO Co., Ltd.
Director of the Board, KOKUYO Co., Ltd.
Representative Director of the Board, Vice President, KOKUYO Co., Ltd.
Representative Director of the Board, Executive Vice President, KOKUYO Co., Ltd. (to present)

Directors' Meetings Attended
Attended all 13 sessions

33

KOKUYO Group CSR Repor t 2013

Masa Matsushita
Director of the Board, Senior Corporate Officer
April 1989
March 2003
September 2005
July 2010
March 2011

Registered attorney (Tokyo Bar Association)
Vice President and Director of the Board, General Electric Japan, Ltd.
Director of the Board, Executive Vice President, FAST RETAILING CO., LTD.
Director of the Board and Executive Vice President, Siemens Japan K.K.
Director of the Board, Senior Corporate Officer, KOKUYO Co., Ltd. (to present)

Directors' Meetings Attended
Attended all 13 sessions

Takeharu Nagata
Independent Director of the Board
April 1967
June 2002
June 2005
June 2010
March 2011

Joined Sumitomo Bank, Limited
Deputy President, Executive Officer, Sumitomo Mitsui Banking Corporation
Outside Statutory Auditor, Shionogi & Co., Ltd. (to present)
Chairman, Keihanshin Building Co., Ltd. (to present)
Independent Director of the Board, KOKUYO Co., Ltd. (to present)

Reasons for Election
To substantially increase the transparency of the Company's management by drawing on Mr. Nagata's experience,
knowledge, and professionalism that he has gained through many years in the management of a leading financial
institution. We believe Mr. Nagata can provide high-level management judgments from his neutral and fair perspective.
Directors' Meetings Attended
Attended all 13 sessions

Nobuyuki Oneda
Independent Director of the Board
April 1969
June 2005
June 2005
March 2011

Joined Sony Corporation
Deputy President, Executive Officer, Sumitomo Mitsui Banking Corporation
Director of the Board, Executive Vice President and Chief Financial Officer, Sony Corporation
Independent Director of the Board, KOKUYO Co., Ltd. (to present),
Outside Statutory Auditor, Kirin Holdings Company, Limited (to present)

Reasons for Election
We look to Mr. Oneda to assist the Company in raising the level of corporate governance and transparency, based on
his years of experience and knowledge gained in the management of a leading corporation.
Directors' Meetings Attended
Attended 12 of the 13 sessions

34

KOKUYO Group CSR Repor t 2013

Hisao Sakuta
Independent Director of the Board
April 1968
June 2003
June 2011
March 2012

Joined OMRON Corporation
Chief Executive Officer and Representative Director of the Board, OMRON Corporation
Chairman of the Board of Directors, OMRON Corporation (to present)
Independent Director of the Board, KOKUYO Co., Ltd. (to present)

Reasons for Election
We look to Mr. Sakuta to provide appropriate advice for strategic decision making as the Company expands its
operations globally, based on his broad experience and knowledge gained in the management of a leading company
with overseas operations.
Attended 10 of the 11 Board of Directors' Meetings that were held after his appointment on March 29, 2012

Audit & Supervisory Board Members

From left to right: Hiroshi Mizuno, Nobuyuki Miyagaki, Yoichi Kotani, and Tomomi Yatsu

Yoichi Kotani
Standing Audit & Supervisory Board Member
April 1972
June 2001
March 2009

Joined KOKUYO Co., Ltd.
Director of the Board, KOKUYO Co., Ltd.
Audit & Supervisory Board Member, KOKUYO Co., Ltd. (to present)

Directors' Meetings Attended
Attended all 13 sessions
Audit & Supervisory Board Meetings Attended
Attended all 14 sessions

35

KOKUYO Group CSR Repor t 2013

Nobuyuki Miyagaki
Standing Audit & Supervisory Board Member
April 1978
April 2011
March 2012

Joined KOKUYO Co., Ltd.
General Manager, Process Reform Division, KOKUYO Co., Ltd.
Audit & Supervisory Board Member, KOKUYO Co., Ltd. (to present)

Directors' Meetings Attended
Attended all 13 sessions
Audit & Supervisory Board Meetings Attended
Attended all 14 sessions

Tomomi Yatsu
Outside Audit & Supervisory Board Member
September 1990
November 2001

Registered certified public accountant
Registered attorney (Tokyo Bar Association)

April 2007
June 2009
March 2012

Partner, Bingham McCutchen LLP (to present)
Outside Statutory Auditor, CALBEE, Inc. (to present)
Outside Audit & Supervisory Board Member, KOKUYO Co., Ltd. (to present)

Reasons for Election
Ms. Yatsu was selected to provide the Company with her professional knowledge, which she has gained from many
years as a registered certified public accountant and her experience as outside Audit & Supervisory Board Member for
leading corporations.
Attended all 11 of the Board of Directors and Audit & Supervisory Board meetings that were held after her appointment
on March 29, 2012.

Hiroshi Mizuno
Outside Audit & Supervisory Board Member
April 1969
April 2003
June 2011
March 2013

Entered Matsushita Electric Industrial Co., Ltd. (currently, Panasonic Corporation)
Became vice president of Panasonic Automotive Systems and, concurrently, representative director
and president of Panasonic Car Electronics
Became outside auditor of Santen Pharmaceutical Co., Ltd. (currently holds this position)
Became Audit & Supervisory Board Member, KOKUYO Co., Ltd. (to present)

Reasons for Election
Mr. Mizuno was selected to be outside auditor of KOKUYO Corporation to enable KOKUYO to draw on the extensive
knowledge and experience as well as the broad perspective he has gained in senior management and the position of
external auditor in other industrial corporations.

36

KOKUYO Group CSR Repor t 2013

Corporate Officers

Akihiro Kuroda
President and CEO

Yasuhiro Kuroda
Executive Vice President

Masa Matsushita
Senior Corporate Officer

Takuya Morikawa
Senior Corporate Officer
Representative Director andPresident,
KOKUYO S&T Co., Ltd.

Hidekuni Kuroda
From left to right: Yasuhiro Kuroda, Masa Matsushita, Motohiro Hojo, Takuya Morikawa,
Hidekuni Kuroda, and Akihiro Kuroda

Senior Corporate Officer
Representative Director andPresident,
KOKUYO Furniture Co., Ltd.

Motohiro Hojo
Corporate Officer
General Manager of Group
Strategy, KOKUYO Co., Ltd.

37

KOKUYO Group CSR Repor t 2013

CSR Management (Organizational governance)

Compliance
As it develops and becomes a truly Asian company, the KOKUYO Group is working to ensure that all management andstaff will have a strong awareness of compliance and will take the right actions in sincerity at all times.

Preparation of the KOKUYO Group Code of Conduct
KOKUYO is developing its business activities based on the belief that “sincerity” is the most-important value for attaining
sustainable growth as a company. Accompanying the development of KOKUYO's overseas activities, compliance with laws
and regulations has become an important management issue in globalization. In nations overseas, there is a diversity ofculture and values, and interpretations of laws differ from country to country. However, we believe that, while taking
account of local customs and mores, it is necessary to prepare a common code of conduct for the Group. Accordingly,
following on from the KOKUYO Corporate Ethics Guidelines that were issued in 2001, in August 2012, we prepared andissued the KOKUYO Group Code of Conduct. This code states the basic standards for conduct that all KOKUYO Groupmanagement and staff should observe, both in and outside Japan. In addition, we are preparing a series of KOKUYOGroup Code of Conduct Handbooks that take into account differences in business practices, laws, and other matters
across countries and regions. At present, handbooks are in the process of being prepared for the seven countries andregions where the KOKUYO Group has operations (China, Vietnam, Thailand, Malaysia, Singapore, Hong Kong, andIndia). Meetings will be held to explain the handbooks for these countries.

Focusing on Raising Awareness of Compliance

Duty to Submit a Pledge
Following the establishment of the KOKUYO Group Code of Conduct, all management and staff are now required to submit
a pledge indicating they will be compliant with laws and regulations. Each member of management and staff is expected toconfirm the content of the code of conduct periodically. The aim of the pledge is to encourage management and staff toreview their own conduct and to provide an opportunity to think about compliance.

Review of the Internal Informant System
Along with the establishment of the KOKUYO Code of Conduct, the “KOKUYO Group Hotline,” which is the internal
informant system of the Group, came under review. To make it more effective, certain changes were made in the operationof the system, including the clarification of the process flow. In addition, to make it possible for all KOKUYO Group
employees, including those overseas, to use this system, measures will be taken to gradually make available a system ofthis kind in KOKUYO Group companies around the world.

Implementation of Compliance “Self-Checks”
We have made arrangements for compliance “self-checks” by group leaders in various workplaces. These checks have thegroup leaders verify periodically the operating risks in daily business processes and create opportunities for them to beaware of such risks. In addition, the results of the checks are discussed among the organizational head and group leaderswith the objective of promoting communication. In 2012, these self-checks were first conducted by 456 group leaders, andthey covered the categories of “sales functions,” “procurement functions,” and “regulations and rules.”38

KOKUYO Group CSR Repor t 2013

Compliance Surveys
Although we had not conducted compliance surveys since 2007, we resumed these for the first time in five years. The
most-recent survey covered 26 Group companies in Japan and 10 Group companies in China and it was aimed at
obtaining a grasp of the level of compliance awareness among management and staff. The results will be used to prepare
measures to increasing the level of awareness, and the surveys will be conducted annually.

Periodic Training Overseas
Beginning in 2009, we started to hold discussion-type training, named “Compliance Discussion (CPD)”, on a continuingbasis. These CPDs have been held a total of 41 times with the participation of a total of 516 employees in Japan and
China. In addition to the periodic training courses on intellectual property and legal matters that have been held so far inJapan, we will begin to hold these sessions periodically overseas as well. Also, in Japan, we are continuing to hold training
sessions on the prevention of collusion and tests for participants via the Internet.

39

KOKUYO Group CSR Repor t 2013

CSR Management (Organizational governance)

Risk Management
KOKUYO's Business Continuity Planning Initiatives
The KOKUYO Group began the consideration and preparations of business continuity planning (BCP) in 2007 to be readyfor damage that might be sustained to production facilities and office functions in the event of national disasters and othercontingencies.

Lessons from the Great East Japan Earthquake
During the Great East Japan Earthquake that occurred on March 11, 2011, the plans that had already been made in
KOKUYO's BCP activities, including the sharing of information and various countermeasures, proved to be useful. Althoughnone of KOKUYO's business locations suffered serious damage, we staged practice drills under the assumption that suchdamage had occurred. In addition, in some cases, suppliers of raw materials did suffer damage, and, as part of our BCP
activities, we surveyed the suppliers of raw materials for our major products and considered alternative suppliers. On theother hand, we faced a large number of unexpected issues, including confusion in product distribution because of
shortages of fuel and production stoppages because of scheduled power outages. In the future, we will take these issues
into account, and, to ensure a faster return to stable product supplies, we will implement the following measures in our BCP
activities.
(1)Early response measures during disasters
The disturbing impact of major disasters on employees was greater than anticipated, and we realized once more that how
to restore calm behavior was a major issue. Following the earthquake, we printed and distributed a “survival card” toemployees and took measures to acquaint everyone of the proper behavior during times of disaster.
(2)Creation of a safety confirmation system and implementation of practice drills
To make quick confirmation of the safety of Group employees in times of major disasters, in 2006, we set up a safety
confirmation system using the mobile phones, PCs, fixed line telephones, and other means of communication of
employees. Immediately after the earthquake, it was temporarily not possible to use telephones and e-mail. At present,
however, no other alternative systems seem to exist that would enable confirmation of the safety of a large number of
employees. For the time being, we will continue to require all employees to register their mobile and other contact
addresses and make sure that these are kept up to date and in a usable state.
(3)Implementation of Large-scale evacuations of business locations
Along with regular countermeasures for earthquakes, we are conducting periodic training and drills that assume major
earthquakes have occurred. We are also taking steps to make improvements when problems are identified in thesepractice sessions, and appropriate changes are constantly being made in the content of suggested courses of action
contained in disaster manuals.
(4)Policies for disease epidemics
Based on the experience gained during the H1N1 influenza epidemic in 2009, we are considering and pursuingcountermeasures for the recurrence of such epidemics. To respond to the dangers of possible epidemics, such as the onethat might occur following the transmission of the H5N1 avian influenza virus to and among human beings, we are working
to prepare BCP contingency measures.

40

KOKUYO Group CSR Repor t 2013

Structuring Business Continuity Management Systems
KOKUYO Furniture has been designated as the KOKUYO Group's pilot company for BCP activities. Beginning in 2007,
measures have been taken to identify and make assessments of risks in major business processes within the supply chain
and prepare recovery scenarios and related plans. In fiscal 2008, KOKUYO's business processes related to office furniture,
construction material manufacturing and shipment, and customer response and service systems received certification
under BS 25999-2 standards for its Business Continuity Management System (BCMS). This was the first such certification
received by a company in the office furniture industry in Japan.

KOKUYO Furniture's Basic Policy for BCM Activities

Objective
Kokuyo's aim is to fulfill corporate social responsibilities and secure customer satisfaction and trust by taking initiatives forbusiness continuity management to ensure and share continuity in the provision of furniture-related products and services
in the event of unexpected circumstances.

Policy for BCM Activities
1. Assess risks that may endanger business continuity and implement appropriate countermeasures
2. In preparation for unforeseen circumstances, prepare recovery plans and measures in advance
3. Make continuing improvements in BCM systems

41

KOKUYO Group CSR Repor t 2013

CSR Management (Organizational governance)

KOKUYO'S Responsibilities to Stakeholders
KOKUYO is aware that raising corporate value is a responsibility that it has to shareholders and investors, and, to maintaintransparent and sound corporate management, it strives to make accurate and timely disclosure of corporate information.
* Related information: Inclusion of Shares in SRI Indexes

Policy and Achievements regarding Dividends
With the objective of emphasizing shareholder interest, in addition to the previous policy of paying stable dividends,
KOKUYO takes account of consolidated financial results and pays dividends aiming at a dividend payout ratio of 20% ormore. Retained earnings are employed to make investments for future growth with the aim of increasing corporate value.

Making Management More Transparent

IR Activities
With the aim of providing information needed for investment decisions to investors
and securities analysts, KOKUYO discloses information in a fair and timely manner
on a continuing basis. To explain performance and other topics, financial resultspresentations are held twice a year, small meetings are conducted four times a
year, and one-on-one meetings with investors are held at appropriate intervals. At
the financial results presentations, the Representative Director and Chief Executive
Officer of KOKUYO is the principal speaker, and the meeting is attended bydirectors and executive officers. Small meetings are conducted by the Chief
Financial Officer. In addition, on-site tours are conducted at KOKUYO's Tokyo
Showroom and Eco Live Office in Shinagawa, in the Kasumigaseki Live Office, andin The Conran Shop.

The financial results briefing for the
fiscal year was held on 19 February
2013

Information Disclosure
KOKUYO discloses corporate information in accordance with the rules established by various stock exchanges for timely
disclosure by listed issuers of securities. In addition, even for information for which timely disclosure is not mandatory, as
much as possible, KOKUYO discloses by appropriate and fair methods, other information that, in its judgment, will help
investors in better understanding the Company. KOKUYO strives to make such information available promptly on its
website.
* Related information: Investor Relations

42

KOKUYO Group CSR Repor t 2013

Shareholder Special Benefit Plans
To respond to the continuing support of KOKUYO shareholders and with the aim ofsignificantly deepening the understanding of the KOKUYO Group by having
shareholders actually use Group products, KOKUYO has established a shareholder
special benefit plan. Under this plan, products are sent to once a year to holders of
500 shares or more.

43

KOKUYO Group CSR Repor t 2013

CSR Management (Organizational governance)

ISO26000 Table
Information about issues concerning the following core subjects of ISO26000 can be viewed in the following sections of thisCSR report.
ISO26000 Coresubjects

IssuesWeb page

Top Interview
Mission Statement and Origin of the“KOKUYO” Name
Corporate Governance
KOKUYO's CSR Charter
Organizational
governance

Issue 1: Organizational governanceCompliance
Risk Management
KOKUYO'S Responsibilities to
Stakeholders
Third-Party Assessments
KOKUYO Group Dialog on Tohoku's
FutureHuman rights

Labor practices

Issue 1: Due diligence
Issue 2: Human rights risk situations
Issue 3: Avoidance of complicity
Issue 4: Resolving grievances
Issue 5: Discrimination and vulnerable
groupsIssue 6: Civil and political rights
Issue 7: Economic, social, and cultural rights
Issue 8: Fundamental principles and rights at
work
Issue 1: Employment and employment
relationships
Issue 2: Conditions of work and social
protection
Issue 3: Social dialogue
Issue 4: Health and safety at work
Issue 5: Human development and training in
the workplace

44

Mission Statement and Origin of the“KOKUYO” NameKOKUYO's CSR Charter
Compliance
Human Rights(Human Resource
Development)
Human Rights(Diversity)
Fair Transactions
CSR Data “Society”

KOKUYO's CSR Charter
Compliance
Human Rights(Human Resource
Development)
Human Rights(Diversity)
Labor Practices/Safety and Health
CSR Data “Society”

KOKUYO Group CSR Repor t 2013

KOKUYO's CSR Charter
Compliance
Issue 1: Prevention of pollution
Issue 2: Sustainable resource use
Issue 3: Climate change mitigation and
The environment

adaptation
Issue 4: Protection of the environment,
biodiversity, and restoration of natural
habitats

Environmental Management
Resource Saving and Recycling
Environmentally Friendly Products andServices
Biodiversity
Third-Party Verification Report
Environmental Performance Data
Global warming preventive measures

Fair operating
practices

Consumer issues

Issue 1: Anti-corruption
Issue 2: Responsible political involvement
Issue 3: Fair competition

Corporate Governance
KOKUYO's CSR Charter

Issue 4: Promoting social responsibility in thevalue chain
Issue 5: Respect for property rights

Compliance

Issue 1: Fair marketing, factual and unbiased
information, and fair contractual practices
Issue 2: Protecting consumers' health andsafetyIssue 3: Sustainable consumption
Issue 4: Consumer services, support, andcomplaint and dispute resolution
Issue 5: Consumer data protection andprivacy
Issue 6: Access to essential services
Issue 7: Education and awareness

KOKUYO's CSR Charter

Fair Transactions

Stationery: Products and Services
Designed from the Customer's
Perspective
Furniture: Products and Services
Designed from the Customer's
Perspective
Quality Assurance
KOKUYO Group Dialog on Tohoku's
FutureKOKUYO's CSR Charter

Community
involvement anddevelopment

Issue 1: Community involvement
Issue 2: Education and culture
Issue 3: Employment creation and skills
development
Issue 4: Technology development andaccessIssue 5: Wealth and income creation
Issue 6: Health
Issue 7: Social investment

Compliance
A Single Notebook Puts Smiles onChildren's Faces
Design Workshop in a Multipurpose
School Facility
IINE! Project2012
Activities throughout Japan
Activities around the World
Biodiversity

45

KOKUYO Group CSR Repor t 2013

With Customers (Consumer Issues)

Stationery: Products and Services Designed from the Customer's
Perspective
To offer all of our customers truly excellent products, we develop products with new value that has not been available
previously, and, by strict product quality control, we work to enhance customer service.

“Life Event Support Series” a Big Success
The “Life Event Support Series” of KOKUYO products has been designed to provide first-step support for those customers
who keep things that concern them in order by making a note of them. Since launching the first item in this series, the Last
Will and Testament Kit, in June 2009, KOKUYO has subsequently offered the second item, My Final Note “Living andEnding Notebook”. This was followed, in turn, by the third item, entitled “Relationship data Notebook” The total number of
items in this series sold to date had exceeded 550,000 as of January 2013. Then, in March 2013, KOKUYO introduced thefourth item in the series, entitled “Health and Lifestyle Notebook”.

How the Series Was Created
The idea for this series of products was suggested to a KOKUYO productspecialist, who was volunteering his services to provide legal advice, and was
asked about how to write a last will and testament. That is why the first item in theseries was entitled the Last Will and Testament Kit. During the process of designing
this item, KOKUYO personnel conducted in-depth interviews that lasted about one
hour each with 100 men and women from various age-groups and walks of life.
One of the findings was that the younger generations also have a strong interest ininheritance matters. Drawing on the findings of these interviews, we were able todevelop the Last Will and Testament Kit, a product that had not existed before, thatenables even people with no prior experience to understand how to write a will thatis legally binding.

46Life Event Support Series

KOKUYO Group CSR Repor t 2013

My Final Note “Living and Ending Notebook”
To collect customers' ideas and opinions for the Last Will and Testament Kit, we inserted a reply questionnaire postcard
inside the notebook. The kit generated many responses after it was launched, and many customers replied that they“wanted to write down things in more detail.” We decided to conduct more interviews and, as a result, we were able todevelop a “final note” product that went beyond previous items of this kind and could be used by persons of all ages. That
became the My Final Note “Living and Ending Notebook”. Customers purchasing these notebooks find it easy to start
making entries, and, to make it as easy as possible for customers to continue to add content, we gave careful consideration
to the items included and their order. We put spaces for memos, such as information on bank accounts, credit cards, andother such matters, in the first half of the notebook. A wide range of user age-groups from 14 to 97 purchased and madecomments in these notebooks. Since the My Final Note “Living and Ending Notebook” was introduced in 2010, 360,000
have been sold, thus making it a major hit product.

Gathering More Opinions from Customers
After launching the “Living and Ending Notebook”, we received many responses to our reply questionnaire postcard.
Comments included “we want to keep records of our gifts” and “we want to write more about medical matters.” As wecontinued to conduct in-depth interviews, we uncovered things that concerned users and things they viewed asinconvenient. This led to the third item in this series, entitled “Relationship data Notebook” and the fourth item, entitled A“Health and Lifestyle Notebook”. We pay close attention to details in designing these notebooks, making sure to use paperthat is smooth and easy to write on and using bindings that will open easily and lie flat on the desk to give customers theimpression that products are really “user friendly” and “somehow superior.” One of the comments of KOKUYO's founderwas “we must make products that are somehow superior.” We believe that this extra effort, which may represent just asmall improvement, is needed to give customers peace of mind and make them want to use our products.

Creating Better Products Based on Customer Inputs
Through the replies to our questionnaire postcards, we have received many comments from customers, such as “I havebeen able to keep things that have concerned me for a long time in order. So, I feel better and have a sense of peace ofmind.” Other gratifying comments also suggested that husbands, wives, and families have been able to think together andhave built closer ties with one another. Through this series of notebooks, we want to give support to customers who arethinking “I had been thinking that this is something I should do, but just have not had the chance.” We want our customers
to pick up and use these products without feeling stress and with peace of mind. As we launch other new products, we
believe we will have the pleasure of gathering the views of many more customers. Although we may receive some criticalcomments from time to time, we are going to treat these as value inputs and somehow put them to work in our products.

Campus Notebooks for Primary School Students
According to a survey of the mothers of primary school students (conducted in December 2010 by KOKUYO S&T with asample size of 1,800), the principal complaint that they have regarding the notebooks used by their children (with a
response rate of 44%) is that “even after using an eraser, the previous impression does not disappear completely.” Basedon this research finding, KOKUYO fully revamped its series of Campus Notebooks (classified by application) and adopted
its newly launched Paper Easily Erasable with an Eraser in its notebooks.

47

KOKUYO Group CSR Repor t 2013

Development of Easy-to-Write-in-Pencil, Easy-to-Erase Paper
Since primary school students generally write with pencils, we newly developed atype of paper especially for writing with pencils. Since the space between the fibers
in this type of paper has been reduced and the openings between fibers have been
filled in, this prevents the graphite (black lead) of a pencil from lodging itself into thepaper. In addition, since the surface of the paper has been made smoother, it iseasier for the graphite to stick to the eraser, thus making it possible to erase thepaper cleanly. In addition to securing writing density equal to previous papers, it isalso possible to write characters and letters with the large number of strokes
distinctly.
When the surface of the paper is smoother, letters written with a graphite pencil are easier to erase, but the density of thewriting strokes decreases, making it more difficult to write clearly and distinctly. On the other hand, when the surface of thepaper is rough, the density of the writing strokes increases, but they become more difficult to erase. By processing thepaper to balance these contradictory properties, after considerable effort, KOKUYO was able to develop paper for writing
clear, distinct letters that are easy to erase.

48

KOKUYO Group CSR Repor t 2013

With Customers (Consumer Issues)

Furniture: Products and Services Designed from the Customer's
Perspective
By changing the way we work, we can create new value in the office. This is the point that KOKUYO Furniture emphasizes
the most in designing offices. KOKUYO Furniture has conducted many kinds of research, experiments, and analyses over
and over, and is continuing to pursue this point.

KOKUYO's Approach to Office Design
Office Design in General to Date
Even if we design new offices based only on customers' current opinions about offices, that would only create offices thatare free of those issues that concern them at present.

KOKUYO's Idea of Office Design
Compile and put in order what customers think they would like to see change and want to change. Think about what office
workers are requesting when they talk about “new ways of working,” which is equivalent to their ideal. Then, offer spaces
and furniture that make what these office workers want a reality. This is KOKUYO's concept approach to office design.

49

KOKUYO Group CSR Repor t 2013

The basis for KOKUYO's “new ways of working” lies in accumulated research, experimentation, and analysis of humanbehavior. These new ways of working are also the result of the accumulation of experiments in KOKUYO's own “live office,”
which have been conducted for more than 40 years; product planning that draws on ethnography (observation surveys ofhuman behavior); and many other initiatives, including KOKUYO's own magazine that has continued to transmit informationon the latest trends in working and has won a high evaluation.

Main Initiatives that Led to “New Ways of Working”

WORKSIGHT
This is KOKUYO's strategic communication tool that spreads information about
work styles and is aimed at key persons in corporations whose job it is to think
about the working environment. The approach of this communication tool is toaddress the management problems that companies face from the perspective of“the redesign of the working environment,” which is equivalent to the sum of thespecial infrastructure and the systemic infrastructure. WORKSIGHT is the
combination of a printed paper media that comes out twice a year and an Internet
website that is revised on an ongoing basis. In addition, the WORKSIGHT
WORKSIGHT
communication tool is linked with the events sponsored by its editorial department
and is aimed at creating a community composed of “key people in corporations whose job it is to think about the working
environment.”* Related information: 「WORKSIGHT」

NEXT OFFICE KASUMIGASEKI
This is a new way of linking what we call in Japanese shinrin, which means
deepening circles of collaboration internally, and koen, which means building newties outside of KOKUYO, to create new “crowd working” among people. The
concepts of shinrin and koen build ties among “management and the workplace,”“members,” and “the inside and outside of projects” and thereby create venues thatforge a “strong team” that can respond to change.

NEXT OFFICE-KASUMIGASEKI-

Creative Lounge MOV
Setting a new course that will overcome the boundaries of organizations, nations,and generations, people from differing fields, differing cultures meet. They shareexperiences and knowledge and work in new ways to create new value. With theidea of responding to needs such as , Creative Lounge MOV was born in Tokyo's
Shibuya Hikarie 8 Center. MOV was started with an idea of stimulating new
movements from its location to the rest of the world. Creative Lounge MOV is aworkspace, much like the Shibuya district itself, where people can work and polishtheir capabilities, create an organic community, communicate from one individual toanother, and link up with companies.

50

Creative Lounge MOV

KOKUYO Group CSR Repor t 2013

Manufacturing Initiatives Based on Dialog
At KOKUYO Furniture, we bring together the feelings of a diverse group of furniture users and take the initiative indeveloping furniture that incorporates and responds to the fine details of the concerns of users. The ease of use of
KOKUYO furniture and the process of its creation have been highly evaluated, and it has been adopted in waiting rooms ingovernment offices and medical institutions nationwide.

Through the Medium of Workshops We Can Create with Users
The waiting rooms of the offices of municipal governments are places where manykinds of citizens visit, and they need furniture that creates spaces that are
comfortable and puts them at ease. What we at KOKUYO think is important is theprocess of listening with maximum attentiveness to the voices of customers inworkshops which are attended by the users of our products. That is the way wetake the initiative in finding the shapes and forms that are universally easy to use.
We do this, for example, by confirming the movements of users with physicalhandicaps, testing our ideas, and finding out about the physical and psychologicalconcerns and doubts of users through the conversations we exchange in spare moments. That is why our finished products
are easy for a wide range of people to use, of course, not just for persons with physical handicaps, but also for seniorcitizens, women nearing childbirth, people with bulky packages, and others.

Dialog Style Development Process UD+3
We find that our products developed through this process, with their attention todetail, have won the understanding of our customers, and we can sense the delightand positive response of our customers that comes from offering products of true
value. We summarize this approach in three processes that we call “UD+3” and areworking to apply it to a broader range of products. After launching our Madre lobby
chair, which won the Universal Design Award 2012, we introduced our Padre lobby
chair, which features a sharp design and ease of maintenance through theexchange of parts. We also launched our risuma conference room tables, which
can easily be used in conference rooms of public meeting places and other venues. The products in this series bear the“UD+3” mark, and this enables customers to identify them and choose them easily.

Madre sofas in the Minami Ward office

Padre lobby chairs excel in ease of

KOKUYO's LISMA conference room

in Saitama Prefecture

maintenancetable that is easy for seniors to use

51

KOKUYO Group CSR Repor t 2013

With Customers (Consumer Issues)

Quality Assurance
As the KOKUYO Group increases the ratio of its sales in markets outside Japan, thinking about quality standards will shift
from being uniform across markets to being “the right product for the right region.” While giving maximum priority toensuring consumer safety, the KOKUYO Group is preparing quality standards that customers will support suited to thefeatures of various countries and regions.
The business environment and conditions that influence thinking about quality standards differ from one country or region
to another. These differences in thinking are influenced by culture, people's sense of values, such economic conditions as
per capita GDP, laws and regulations relating to quality, and the natural environment. To maintain and increase the qualityof its products and services, the KOKUYO Group is taking the following approaches.

Views regarding Quality Assurance at KOKUYO S&T
Tightening the Quality Assurance System
KOKUYO S&T has realigned its quality assurance organization and systems,
strengthened related corporate governance activities, including internal auditing
functions, and reviewed its manufacturing system, including the close examinationof the content of quality assurance operations. KOKUYO's Partner Plant also
conduct thoroughgoing checks not only regarding cost and delivery issues but also
from the perspective of quality.
Full-Scale Introduction of the Quality Cost Concept
Quality cost comprises the investment and expenditures needed for quality
assurance activities. Quality cost is divided into three categories—prevention,assessment, and failure costs, and it is considered one indicator for implementing
quality control policy. Beginning in 2010, KOKUYO made a full-scale introduction of
the concept of “failure cost.” By measuring not just the number of instances of faulty
products that entered the market and customer complaints but also the cost ofdealing with these, KOKUYO is working to strengthen the focus on quality, clarify
the magnitude of claims against the Company, and stimulate initiatives to make
improvement. The actual results by plant are analyzed, used to compare plantcapabilities for delivering quality objectively, and used to set priorities for quality
improvement.

Persons in charge of productdevelopment and quality assurance giveproducts a joint check

Introduction of Product Risk Analysis Using the R-Map Method
To prevent accidents involving products, KOKUYO has begun to analyze the risk inherent in its products using the risk map(R-Map) method, adopted from the field of reliability engineering. The R-Map method uses a matrix, with “frequency ofoccurrence” on the vertical axis and “level of damage” on the horizontal axis, to express the level of risk. This approach isuseful in preparing safe design specifications for products and making assessments of safety before the fact and after thefact. Use of this method is spreading among companies concerned with manufacturing excellence.
Conduct of Plant Diagnoses (Quality Audits)
To maintain and increase product quality among KOKUYO's more-than-10,000 items, it conducts plant diagnoses (quality
audits) in its plants in Japan and overseas. This involves the examination of the framework of individual plants and theclarification of their respective strengths and weaknesses. This information is then used to make improvements in
productivity and quality. In addition measurements of the capability of various plants to deliver quality products is then put
to good use in developing optimal production strategies.

52

KOKUYO Group CSR Repor t 2013

Views regarding Quality Assurance at KOKUYO Furniture
KOKUYO Furniture expanded the scope of its ISO 9001 certification in 2010 to include furniture for public-sector facilities
that are accompanied by construction and then again in 2012 to include construction material products, such as room
dividers and partitions. As sales in overseas markets are expanded, KOKUYO Furniture will make preparations to meetglobal quality standards and aim for a level of quality that will be accepted in various countries the world.

Activities for Enhancing Quality
In the furniture business, the issues go beyond product quality and include quality-control activities covering the full supply
chain from product marketing to after-sales service and requiring close communication among various departments. In
addition, the opinions and requests from customers are used as feedback to departments in charge of each of these
activities to improve overall quality.

Enabling Customers to Use KOKUYO Products with Confidence
Setting High “In-House Standards”
In the process of developing new products, related departments hold meeting from the planning and design stages andhave discussions as well as make assessments of product safety, including ease of use. When new products are to becommercialized, thorough examinations are conducted to ensure compliance with Japanese Industrial Standards (JIS),
industry, and other specifications as well as even more demanding “in-house standards.”
Responding when Accidents Occur
In the rare cases where accidents occur, related departments work together to give a fast response. In the event of major
accidents also, reports are made to management and the Compliance Committee, and appropriate measures are taken
promptly. In addition, reports are made to the relevant government authorities, and notifications are issued in newspapers
and via the Internet as well as other media to prevent the possible spread and recurrence of accidents. In addition,corrective measures are taken and policies implemented to prevent the occurrence of similar accidents horizontally acrossproduct lines.
Notifications Regarding Product Safety and Quality
KOKUYO Furniture uses its corporate website as a media for making notifications regarding product safety and quality. The
most-appropriate section of the website is selected, depending on the nature of the notifications.
Full Set of Initiatives through to Delivery
To give customers who have purchased KOKUYO Furniture products an even higher level of satisfaction than they had
expected, at each stage of the value delivery process from manufacturing to delivery and then to installation, efforts are
made to provide maximum quality. For example, KOKUYO Furniture has instituted an in-house qualifications system for
employees who interface with customers, including delivery vehicle drivers and other delivery personnel. The number ofqualified staff under this system is being increased daily, and a “National Contest for Delivery Service Quality” is held
together with partner companies who deliver products on a subcontracting basis. The aim of these activities is to make“Inspiring Deliveries” and raise the awareness among employees of the importance of high service quality.

53

KOKUYO Group CSR Repor t 2013

Raising the Level of Awareness
KOKUYO is working aggressively to raise the awareness of the need to be prepared for disasters. These
include holding seminars around Japan on the theme of “earthquake countermeasures for offices.” Subjects
covered in these seminars have included the difficulties faced by management immediately after disasters(using KOKUYO Tohoku Sales Co., Ltd., as an example), disaster countermeasures from the perspective of
business continuity planning (BCP) (KOKUYO S&T), designing offices that can withstand strong earthquakes(KOKUYO Furniture), and other topics.
Proposing Stockpiling of Emergency Supplies to Corporations
How to stockpile emergency supplies is a necessary part of BCP for organizations. KOKUYO is, therefore,
developing its “Disaster Solution” business, which includes offering proposals for disaster countermeasuresthat are tailor to the needs of individual customers. KOKUYO's guidebook, ”SONAeL, for companies on
stockpiling of emergency supplies and the ”Disaster Countermeasure Expert Series of KOKUYO original
products for coping with disasters have been highly appraised. These provide practical and workable
solutions to disaster issues, and their approach is from the perspective of analyzing and improving officestorage conditions.

54

KOKUYO Group CSR Repor t 2013

With Employees (Human Rights/Labor Practices)

Human Rights(Diversity)
Diversity
At KOKUYO, we believe that diversity means creating a workplace environment where many positions and values aremutually recognized and various work styles are permitted, thus making it possible for each and every employee to draw on
his or her innate abilities.

Basic Framework for Diversity
KOKUYO has identified four basic themes related to diversity. These have been positioned as management themes that all
staff members should participate in and should be addressed by the KOKUYO Group as a whole.
(1) Structuring a system and implementing it throughout the Company
Develop a system to make flexible work styles possible
Implement these systems throughout the Company(2) Sharing the significance of diversity initiatives
Share the significance as a means of creating an atmosphere where it is easy to work
Share the significance as a means of creating an atmosphere where employees can draw fully on their abilities(3) Achieving a good work/life balance
Create an environment where employees can achieve a good balance between work and their private lives
Realize a highly productive work style(4) Supporting the activities of a diversity of human resources
Make the most of diverse human resources, regardless of nationality, ethnic origin, gender, age, religious beliefs,
academic background, and other characteristics
Promote an active role for female employees

Supporting a Balance between Work and Child Rearing/Senior Care
The KOKUYO Group is working to make improvements in its systems that will create an environment where it is easy to
strike a balance between work on the one hand and bearing children, raising them, and caring for senior family memberson the other. KOKUYO has put into place child-rearing benefits that exceed those required by law. Mothers have a choiceof taking a leave for childbirth up to the end of the April after the child has reached one year of age or after the child is one
year and six months old, whichever is longer. This provision takes account of the need for a “breaking in” period before thechild can be placed in a nursery school and allows mothers to extend their leave through the end of April. This provision
was met with a positive response from female employees who said “This will allow us to return to our jobs without
difficulties.”
KOKUYO has also introduced a provision to allow employees to work shorter hours to match the content of work to theconditions of individual employees; this allows employees to shorten the number of working hours per day. Beginning infiscal 2010, KOKUYO also introduced a re-employment system. This provides opportunities for employees who chose to
retire from the Company for having and rearing children or for other personal reasons to return and make use of theirexperience, knowledge, and skills without concern for possible difficulties. Another reason for adopting this system is that it
also enables KOKUYO to secure fully qualified personnel who can contribute immediately to business activities.
In KOKUYO Group companies also, workshops are held to provide support for working mothers, provisions are being
introduced to allow employees to work at home, and other measures are being adopted to introduce systems for supportinga good balance between work and child rearing/senior care.

55

KOKUYO Group CSR Repor t 2013

Workshop in progress with experience

Female employee on leave for child

employee as facilitator

rearing and her child are greeted by her
supervisor

Promoting Understanding of Human Rights
The KOKUYO Group conducts training programs for various levels of employees to promote a better understanding andawareness of the importance of respecting human rights as well as CSR and compliance. The aim of these activities is toencourage the development of a company and society that is without any kind of discrimination. In addition, KOKUYO has
provided for the “KOKUYO Hotline,” which makes it possible for employees to report harassment and human relationshipissues at any time, while also providing related counseling services. In fiscal 2012, internal activities to increase
understanding and awareness of human rights included training programs for employees newly entering the Company.
These included sessions entitled “Respect for Human Rights Brings New Life to the Company and Everyone Can Enjoy a
Better Life,” “Training Program on Diversity Management for Newly Appointed Managerial-Level Personnel,” and “Training
Program on Dealing with Mental Health.”

Initiatives to Support the Physically Challenged at KOKUYO
Since the period prior to World War II, the founder of KOKUYO supported physically challenged employees. At present,
KOKUYO K Heart and Heartland, which are special subsidiaries(*) of KOKUYO, offer a range of job opportunities to
employees with physical disabilities, and these companies are aiming to develop a progressive new business model for theemployment of the physically challenged. In March 2013, KOKUYO was selected for inclusion in the “100 Diversity
Management Corporations,” which is sponsored by Japan's Ministry of Economy, Trade and Industry.
* Under the system applied to corporate groups, employees (physically challenged personnel) of special subsidiaries are regarded as being
employed by a company (or group of companies) and can be included in calculating employment ratios.

56

KOKUYO Group CSR Repor t 2013

With Employees (Human Rights/Labor Practices)

Human Rights(Human Resource Development)
Human Resource Development
KOKUYO believes that the growth of companies is based on the growth of individuals who work in these companies.
KOKUYO, therefore, implements a range of initiatives to draw forth the full capabilities of a diversity of human resources,
with differing personal attributes and differing ways of thinking and values, to realize its own growth and development.

New Employee System Off to a Running Start
In fiscal 2012, KOKUYO newly introduced a redefined personnel system related to capabilities, roles, and terms of
employment of managerial-level personnel. Along with the start-up of this system, consideration was given to how toleverage it to promote the “growth” of individual employees. Along with this, specific initiatives were begun in the areas of“goal setting,” “evaluation,” “feedback,” and “reflecting results in terms of employment.” Also, since abilities, roles, andterms of employment of non-managerial personnel were redefined, after the redefinition of those pertaining to managerial
personnel, those of all levels of personnel in the system were renewed as of fiscal 2013.

Practical Support Programs
As a new initiative in 2012, a practical support program for group leaders, who are the core leaders in the workplace, wasintroduced. The two objectives of this program are to provide strong support for managers at the working level and,
thereby, promote the implementation of the KOKUYO Group's strategy as well as to develop management capabilities thatwill enable us to continue to show results as a team.

Emphasizing Human Resource Development throughout Asia
Program for Training Global Leaders
The KOKUYO Group aims to grow as an “Asian company.” Therefore, KOKUYO is
conducting a two-year Global Leader Development Program for global leader
candidates who will be responsible for leading the development of the Group in
Asia. This program is based on the corporate philosophy of the KOKUYO Groupand has the objectives of having participants draw on their identities (value
provided, sense of values, etc.) acquire the knowledge, skills, and mind-set
required of global leaders. In 2012, which was the second year of the program, we
made improvements in the program adopted previously. In the first year, programcontent included joint diversity sessions with managers of overseas subsidiaries toenable program participants to experience diversity firsthand, a session on financial and labor management required ofmanagement-level personnel in overseas subsidiaries, and a session on strengthening management judgment capabilities.

57

KOKUYO Group CSR Repor t 2013

Managerial-Level Training and Courses on Issue Identification and Goal Setting in China
Beginning in May 2012 over a half-year period, KOKUYO conducted a six-day
management training program for 63 members of the management of six of its
subsidiaries in China, located in Shanghai, Beijing, Guangzhou, Shenzhen, andDalian. The principal goals were to give participants an understanding andknowledge about KOKUYO's history, management philosophy, the current state of
KOKUYO's global expansion, compliance, and other subjects. The program was
supported by Japan-related departments who assisted in developing the content
and brushing up the program materials, and, as a result, the program was notacademic but enabled the participants to gain practical knowledge and skills. In
addition, KOKUYO conducted training in issue identification and goal setting for the
management of its Chinese subsidiaries. This program was conducted in a total offour days, from December 2012 through January 2013 with participants, from a
total of four companies, numbering 22. During the training sessions, after gaining
an understanding of the KOKUYO Group's overall strategy, the strategies of theparticipants' companies, and the business and management plans for the current
year, participants clarified the issues faced by their respective companies and thenaimed to gain skills to enable them to set objectives. This program was not
positioned simply as a training program, but the knowledge gained was to be used in setting the actual goals for the firsthalf of fiscal 2013 and to make these companies an integral part of the KOKUYO Group, closely linked to the KOKUYO
value chain.
Training for Country Managers in the Stationery Business
Beginning in 2011, in the stationery business, KOKUYO has conducted training for country managers by having them cometo Japan. In 2012, a total of 25 managers from four companies—KOKUYO Commerce, KOKUYO Vietnam, KOKUYO IKThailand, and KOKUYO Camlin—in four countries participated in the training program. The program was sponsored by thehuman resource development department of KOKUYO S&T, which is in charge of personnel development. The principal
objective of the program is to have participants, as members of the KOKUYO Group, learn about its founding spirit,
corporate philosophy, and history as well as develop a mind-set that might be expressed as “I am going to work for thegood of my country.” In addition to seeing firsthand KOKUYO's manufacturing and distribution facilities in Japan,
participants also meet with members of the management, key persons, and others in the stationery business and work tobuild their personal human networks. For KOKUYO to grow, it will be necessary for the personnel hired by overseas offices
to understand the code of behavior that is unique to KOKUYO. To become an “Asian company” (or “the honor of Asia”),
KOKUYO will step up its drive to develop global human resources with its base in Asia.

58

KOKUYO Group CSR Repor t 2013

Labor/Management Composition* Data from KOKUYO Co., Ltd., KOKUYO S&T Co., Ltd., KOKUYO Furniture Co., Ltd., KOKUYO Engineering & Technology Co., Ltd., KOKUYOBusiness Service Co., Ltd., KAUNET Co., Ltd.
* As of December 31, 201259

KOKUYO Group CSR Repor t 2013

With Employees (Human Rights/Labor Practices)

Labor Practices/Safety and Health
Activities of the KOKUYO Group extend from manufacturing to construction and cargo transportation. We undertake healthand safety measures that match the requirements of each activity to help maintain safety, peace of mind, and comfort for
employees. Monthly Safety and Health Committee activities in each workplace are the basis for health and safetymeasures. There are also many special events during National Safety Week and National Health Week in Japan to raiseawareness of the importance of workplace safety and health.

Fundamental Policy for Workplace Safety and Health

Safety and health are vital to the business operations of the KOKUYO Group. By establishing
Fundamental
PolicySlogana framework for the oversight and promotion of safety and health, the Group will ensure thesafety and health of employees, conduct business operations in a sound manner, andpreserve pleasant working environments.
(1) Accident prevention, (2) Pleasant workplaces, and (3) Healthy living
A healthy mind and body–Let's fill our workplaces with smiles.

Initiatives that Match the Requirements of Each Workplace Category
Manufacturing
The 2nd KOKUYO Group Factory Safety Conference took place in December 2012.
Representatives of all seven Group factories in Japan attended this event.
Presentations were given to allow everyone to share their knowledge about safety
and health programs. In addition, a Safety Conference was held at the Malaysia
factory of KOKUYO Furniture in July 2012 during Japan's National Safety Week.

Construction
A KOKUYO Group Construction Safety and Health Conference was held at several
locations in Japan in June 2012. This event was conducted by the Central Safety
and Health Committee. About 600 people, including employees in the Group's
construction business and executives from partner companies attended theregional conferences. Participants made presentations about accidents involving
construction activities and talked about ways to prevent accidents. The goals wereto horizontally increase the use of safety and health activities, upgrade education
programs, and eliminate third-party accidents.
Transportation
Group companies start every day by confirming that workplaces are clean andorderly and hold monthly safety patrols. Furthermore, to make transportation
workplaces at the KOKUYO Group safer, there are regular training sessions for
operating forklifts, working in high places, and performing other tasks. This training
improves the safety skills of workers. For off-site work, workers check the safety
and quality of all tasks performed at delivery sites and make continuous
improvements.

60

KOKUYO Group CSR Repor t 2013

Offices
Many workplaces have a weekly no-overtime day and a patrol system to be certainthat no one stays late on those days. When overtime of more than 80 hours in amonth occurred unavoidably, everyone who has done this overtime undergoes a
medical interview and checkup. In addition, an improvement plan must be
submitted for the following month. One of the monthly Safety and Health Committee
activities is a visit by an industrial physician. There are also constant measures toimprove safety wherever necessary.

Fiscal 2012 Lost Time Accidents

Accidents

Time off

Frequency rate*1

Accident severity rate*2

Mie Plant

3

30

5.12

0.051

Shibayama Plant

2

106

4.48

0.237

KOKUYO Product Shiga

0

0

0

0

KOKUYO MVP

1

26

1.95

0.051

IWAMI Paper Industry

1

40

5.54

0.222

Total

7

202

3.33

0.096

*1 Number of workplace deaths and injuries/Total working hours x 1 million*2 Number of working days lost/Total working hours x 1,000

Healthy Living and Mental Health
There are many activities associated with physical and mental health based on the belief that preserving and enhancing thehealth of employees is the foundation for supporting the sound growth of the KOKUYO Group.
Healthy meals at the Company cafeteria
The cafeterias at KOKUYO's Osaka Head Office and Shinagawa office in Tokyo started offering a healthy lunch set (under
600kcal and 3g of sodium) in August 2012. To encourage people to select this meal, there was a campaign that gave
individuals one free meal ticket after buying 10 healthy lunch sets.
Mental health
Employees have access to mental health checkups to prevent problems related to stress. There is also an employee
assistance program that gives individuals access to counseling with an external professional directly or via telephone or email.
KOKUYO Group health targets
We have established the following targets for the Group's workforce to prevent lifestyle diseases.
Lower percentage of employees with a BMI over 25 (overweight) from 23% to 20% over the next three years
Lower the percentage of employees who smoke from 28% to 19% over the next three years

61

KOKUYO Group CSR Repor t 2013

Activities to reach the targets
As one way to lower the overweight ratio from 23% to 20%, Company cafeterias have healthy menu items. There are also
regular health seminars and other activities to make people aware of the importance of leading a healthy life. To reducesmoking, KOKUYO and its health insurance association are working together to create an environment that makes it easy
to quit smoking. A no-smoking campaign is under way to assist people who have recently stopped smoking.

Labor Relations
The KOKUYO Labor Union has programs aimed at helping its members enjoy their lives. There are measures to create
workplace environments where people can fully use their skills and to maintain stability in their lives. The union is also
involved in social activities. Labor and management have a sound relationship that was developed over many years. The
two sides understand each other's positions and have used unified Group labor discussions to debate ways to maximize
the overall efficiency and effectiveness of the Group's operations. Labor and management will continue to hold discussions
with the goal of creating energetic working environments where employees can realize their full potential.

62

KOKUYO Group CSR Repor t 2013

With Business Partners (Fair operating practices)

Fair Transactions
Basic Procurement Policy
The KOKUYO Group creates new value together with its business partners and pursues customer satisfaction. In addition,
to build relationships of trust with its business partners and achieve mutual development, KOKUYO has prepared its Basic
Procurement Policy.

As it aims to become the “honor of Asia,” the KOKUYO Group, with the understanding that mutual
understanding with suppliers and mutual development with them will be increasingly important, prepared its
Basic Procurement Policy in March 2013. The KOKUYO Group will take this as an opportunity to build
stronger relationships of trust.
Pursuit of quality and safety
To motivate customers to continue to select the products and services of the KOKUYO Group, it will
pursue optimal quality and safety suited to the special needs of individual countries and regions.
Mutual development
The KOKUYO Group will respect the relevant laws and social norms of the countries and regions where it
has a business presence, conduct fair and transparent transactions, and work to build relationships ofsincere trust and achieve mutual development.
Human rights
The KOKUYO Group will work to understand the culture and customs of countries and regions where it
conducts its operations and aim to be a company where the rights of all human beings are respected.
Environmental protection and symbiosis with the community
The KOKUYO Group will take initiatives to preserve the natural environment on a global scale and, byparticipating actively in the community, work to build symbiotic relationships with society as a good
corporate citizen.

In addition, based on the KOKUYO Group Basic Procurement Policy, the Group identifies the objectives it would like toattain with its suppliers and issues these in the KOKUYO Group Procurement Guidelines.

Working Together with Our Suppliers
To increase the value that we offer to customers, we arrange to share our strategies and policies with both ourmanufacturing and logistics service suppliers periodically with the aim of building long-term relationships of trust andachieving mutual development.

63

KOKUYO Group CSR Repor t 2013

KOKUYO Furniture Holds Periodic Meetings with Partner Plants
KOKUYO Furniture holds “Partner Plant Meetings” with its principal subcontractors twice each year. The first of theseannual meetings is intended to look back over the previous year and share business strategies for the current year. At thesecond annual meeting, we mainly look back over the first half of the current year and discuss the outlook for the second
half. In addition, partner plants that took outstanding initiatives in implementing business strategy are awarded a certificateof thanks and designated as POWER Partner Plants. We share the content of their initiatives at the meeting and use this tomotivate other plants to take their activities to a higher level. Looking ahead, we will work hard together to achieve coexistence and co-prosperity with our partner plants and aim for excellence in manufacturing that exceeds our customers'
expectations.

Certificate of thanks received by the“POWER Cooperator Plant”

Kaunet Holds Catalog Partner Kickoff Meetings
Kaunet publishes its mail-order and online catalogs twice yearly in February and August. When preparation for the next
catalog begins, each time, Kaunet holds a Catalog Partner Kickoff Meeting that is attended by its suppliers (procurement
suppliers) and other companies involved in preparation of the catalogs. At this meeting, the presentations are made on theeditorial policy of the upcoming catalog, policies for choosing products to be included in the catalog, and productdevelopment policies. The purpose of these meetings is to share with and help participants to gain an understanding of
Kaunet's thinking and its strategic directions. Kaunet's value added is more than just “price” and “a good selection ofmerchandise.” Kaunet also takes care to add value by making it “easy for the customer to select items” and offer its“awareness” to come up with solutions to help customers overcome any dissatisfaction and problems that arise. By staying
in close touch with suppliers and partner companies, it aims to be “Kaunet that is chosen over and over by its customers.”

Working with Supply Channel Participants
The KOKUYO Group works together with supply channel participants with the aims of really delivering value to customers
and meeting a diverse range of needs. To do this, the Group shares its strategies and policies with participants, works tosecure “customer satisfaction,” and achieve mutual development.

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KOKUYO Group CSR Repor t 2013

44th KJM Awards Ceremony Held
2The 44th KOKUYO Jewelry Members (KJMs) Awards Ceremony(*) was held on
November 19, 2012. KJMs with outstanding sales results for the previous year wereinvited as a gesture of thanks to them for their efforts. A total of 220 persons,
including KJMs and other KOKUYO-related participants, attended the ceremony.
* There are currently 1,335 KJMs. These are divided into two courses, one for stationery and theother for furniture, and the KJMs are classified into various ranks, such as diamond, sapphire,
opal, etc., according to their ranking in terms of sales made.
Staff members of the KJM Store, which
received an award for being one of thebest 10 in handling KOKUYO products

KOKUYO S&T Retail Messe 2012 Held
KOKUYO S&T held its Retail Messe 2012 in July 2012 in KOKUYO's Tokyo
Showroom. This messe (exhibition) has been held annually since 1997 and has theaim of developing sales. The theme of the exhibition in 2012 was “Let's Bind
Together for New Discoveries and Rediscoveries,” and topics introduced included
the outstanding value of new products born from new ways of thinking, new value
from existing products created by changing the point of view, and creating sales
spaces. A total of 1,153 buyers and others from retail stores and mass retailers
attended, making the event a successful occasion.

Immediately after the opening,
KOKUYO's exhibit received many visits
by interested retailers“Training Sessions by Market” Held for Nationwide Dealers
Between November 2011 and January 2012, KOKUYO Furniture and other
KOKUYO Group sales companies jointly sponsored the KOKUYO University
Training Sessions by Market 2012 for major dealers in 11 cities (in the order ofTokyo, Osaka, Hiroshima, Fukuoka, Okayama, Nagoya, Sapporo, Niigata,
Utsunomiya, Toyama, and Morioka). A total of more than 600 dealer employees
attended the sessions. Comments of participants included “This was very useful
because I learned about how to approach markets,” “I understood the aims of new
product development.” “This was very useful because there are very few
opportunities to hear explanations as we view the products,” “The scales fell fromTraining session in Nagoya wasattended by close to 100 retailers

my eyes regarding how asking customers a series of questions can reveal
customer needs.”

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KOKUYO Group CSR Repor t 2013

With Local Communities (Community involvement and development)

Activities throughout Japan
Activities throughout Japan
Contribution Activities Deeply Rooted in Regional Communities
Along with providing tours of its showrooms, KOKUYO has prepared off-campus
learning programs covering a range of topics, including anecdotes about productdevelopment, differences between new and previous products, universal design,and eco-friendliness. In fiscal 2012, KOKUYO provided a course on a theme
appropriate for a stationery manufacturer—“Let's get acquainted with theimportance of writing!”, which was attended by 97 parents and guardians. At thesesessions, the children acted as reporters and summarized the content of theirconversations with people sitting next to them. Afterwards, they made reports onthese conversations, and they were very well received. At the KOKUYO Mie Plant,
activities are being conducted to preserve the area around the Higashiyama Fureai
no Mori. Also, in Osaka and at KOKUYO Group plants and logistics centers in thearea, active initiatives include cleanup and blood donation drive efforts in many
parts of the city of Osaka. At KOKUYO's Shinagawa Office, which is the base for
operations in the Tokyo area, lessons were learned from the large number of
persons who were stranded in the JR Shinagawa Station area following the Great
East Japan Earthquake, and, working with Minato City (a subdistrict of Tokyo),
KOKUYO is readying countermeasures for future major disasters.

Training in progress using floor plans

Participants in contribution activities

The “Job Study” Initiative
The “Job Study” program was created in 2005 to help address the issue of the highpercentage of newly hired college graduates, about 30%, who leave theiremployment within only three years. To address this “early departure issue,” thisprogram provides an opportunity for corporations and students to come together
and have interactive communication on the theme of “the meaning of work.”
KOKUYO played a central role in starting this program, and, as a leading organizer,
is in charge of its overall operation. At present, 32 leading companies are membersof the program, and, each year, more than 10,000 university students take part.

Copy Paper Links to the Environment, Welfare, and the Community
KOKUYO was among the first participants in the “Eco-Lab Heart Shiga” initiative,
which is one of the activities of the Shiga Social Work Business Promotion Centerof Shiga Prefecture. This initiative is a system for having persons from a joint work
center deliver copy paper, which is used every day, without the use of paperboard
packaging. This initiative got under way in 2007 with the of achieving two objectives
at the same time—caring for the environment (reducing the unnecessary use of
paperboard) + welfare (promoting work for the physically challenged).
Plastic packaging that is used as a
substitute for paperboard packaging

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KOKUYO Group CSR Repor t 2013

Regional Brand Production
KOKUYO Furniture has been promoting the use of domestic timber for more than
10 years. Using its know-how and network, KOKUYO Furniture has utilized
Kitayama cedar from the Kyoto region and white birch from Hokkaido to produce
various types of furniture. Although the use of timber around the world is on a rising
trend, but Japan relies on imports for about 75% of the supply that is processed inJapan. Domestic timber is higher cost, and, not only are the opportunities for using
it declining but also because of the high cost of forest maintenance compared withincome, the condition of forest areas has deteriorated. The Japanese governmentis taking various measures to remedy this and increase the use of domestic timber.
To this end, the government passed the Public Building Wood Use Promotion Law
in 2010 and is promoting the wider use of domestic timber for interior decorationand furniture. Through its activities in manufacturing furniture, KOKUYO Furniture isengaged in initiatives with the people of regional areas to solve the related
problems.

Furniture made by Kitayama cedar of
Kyoto

Furniture made by plywood of whitebirch of Hokkaido

Sponsorship of Design Awards
Since 2002, the Company has sponsored the KOKUYO Design Awards, and the10th set of awards have been presented. The theme selected for the awards in2012 was “Let's extend the Campus Brand beyond notebooks.” Designs eligible forentry in the award contest were learning-related items other than notebooks.
Campus notebooks have been in use in learning-related situations since 1975, andthey have now marked their 37th anniversary. Over the years, the Campus brandhas been repositioned and applied more broadly, not just to notebooks but also toother stationery items, furniture, and special designs. The Campus brand is a freefield not belonging to any particular categories. This brand has pursued the deliveryof convenience and efficiency as well as going even further to encourage individual
growth by stimulating the desire to learn of users. With this in mind, KOKUYO hassolicited new and exciting designs in Japan and from overseas to give expression
to the Campus brand. As a result, KOKUYO has received 1,170 designs fromcreators desiring to participate in 21 countries.
The detail information of the prize winners is shown on the homepage of “KOKUYO Design Awards”
http://www.kokuyo.co.jp/award/

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KOKUYO Group CSR Repor t 2013

With Local Communities (Community involvement and development)

Activities around the World
Activities around the WorldKOKUYO Camlin of India's Promotion of Artistic Activities
Camlin, Ltd. is a long-established manufacturer of stationery items and visual art
materials, including pens and crayons. Camlin is also a pioneer in the area of
supporting artistic activities in India, and, even after it became a member of the
KOKUYO Group in 2011, as KOKUYO Camlin, it has continued to actively provide
support for the arts. One of the most representative of these activities is the “All
India Camel Colour Contest” for children. This contest has been held now for 39
years with the objective of raising the awareness of students regarding artistic
activities and art, within the context of school education in India. In fiscal 2012,
4,972,995 students from 5,400 schools participated in the contest. The unheard-of
scale and size of this content have been acclaimed, and it was entered in the
Guinness Book of Records as “The largest art competition in the world.”

Children preparing their drawings

Grassroots Support Activities in China
Within the field of outright grants to support education and research at thegrassroots level, KOKUYO donates notebooks to underprivileged children in China.
In villages in remote mountainous areas without schools that are often introduced in
TV programs, children live in dormitories and spend several hours to return to theirparents' homes on weekends. They spend happy times with their families on
weekends, and then spend several hours to return to their dormitories for study.
Children who follow this pattern, however, are fortunate because some children are
not able to leave their parents for family reasons and cannot attend schools at all.

Children in China (Anhui Sheng district

To provide for equal educational opportunities and environments in such regions,of Lu'An city) delighted to receive their
Japan's Ministry of Foreign Affairs has arranged for cooperation grants at thenotebooks
grassroots level in the educational field. As a result of grant support of many
companies participating in these activities, schools have been constructed and educational materials provided. This
provision of schools and educational tools has made it possible to further the education of children who, for many differing
reasons, have not been able to secure sufficient education in the past.
KOKUYO is participating in this cooperative effort through the donation of Campus notebooks, and in fiscal 2012, 21,120
notebooks were provided. Since the start-up of these activities in 2007, KOKUYO has donated more than 400,000
notebooks to this cause.

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KOKUYO Group CSR Repor t 2013

Library Donated in Vietnam
The period of compulsory education in Vietnam is five years. Since a shortage ofeducational facilities has emerged because of the rise in the number of children, asa result, the same classrooms are used in two shifts during the day. On the other
hand, although the Vietnamese economy as a whole is growing, income
differentials are extreme, and many children in agricultural areas cannot go toschool. This situation is particularly serious in the mountainous regions in the northof the country where many minority peoples are concentrated.
KOKUYO Furniture participates in the “Room to Read” activities, which provide
support for the education of underprivileged children in developing countries. On
the occasion of the launching of the Campus series of furniture for educational facilities, KOKUYO Furniture implemented acampaign program involving the donation of a portion of the sales from this series for libraries in Vietnam. Completion of
the libraries is scheduled for 2014.
* “Room to Read” is the name of an NGO (based in the United States) that provides support for education of children in developing countries.
This NGO aims to have provided educational support for a total of 10 million children by 2015.

Contributing by Planting Trees in Tanzania
Since 2008, KOKUYO has worked with the Tanzania Pole Pole Club, a citizen's group engaging in international
cooperation activities (gathering used stamps and cards) that cooperates with villagers in tree-planting activities in theregion. In 2012, KOKUYO donated 302,583 stamps and 672 cards to this group, and, as a result, about 800 tree seedlings
were donated. These seedlings were planted as part of afforestation activities being conducted near Mt. Kilimanjaro (inTanzania), which has been designated as a World Heritage site.

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KOKUYO Group CSR Repor t 2013

With the Global Environment (The environment)

Environmental Management
The Group's Vision for the Environment
To achieve a sustainable society, the KOKUYO Group is working on solutions for global environmental issues by drawing
on the knowledge of a broad range of people associated with the group's business operations. All activities are based on
the awareness that environmental problems ranging from climate change to resource depletion and the need to protect
biodiversity are issues on a global scale.
Building a sustainable society will require creating a recycling-oriented, low-carbon society that can coexist with nature. The
KOKUYO Group Vision for the Environment consists of an environmental philosophy and an environmental policy withseven specific activities: prevention of global warming; resource saving and recycling; procurement, development andsupply of environmentally friendly products; biodiversity; legal compliance and preventing pollution; information disclosureand communication; and environmental management. Based on this vision, all group companies have developed goals thatreflect the characteristics of their business activities and are working on reducing their environmental impact.

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KOKUYO Group CSR Repor t 2013

Goals of the Medium to Long-term Environmental Action Plan
Fiscal 2020 Goals of the Medium to Long-term Environmental Action Plan
Environmental
policyPrevention of global Cut CO2 emissions
Prevention of
globalwarmingResource
saving andrecyclingwarmingCut energy consumption (vs.
Energy conservation FY 2010)

Measures to saveand recycle
resources

Fiscal2020
goals

Fiscal 2012
performance

Measures15% reduction (in30% reduction (inJapan)

Japan)

Down 3.3% from FY
2011

Annual reduction of 1%
in unit energy
consumption

Increase recycling rate inMonitor waste materials
relation to cost of transporting at jobsites associatedwaste materials
with FN

100％* Increase recycling rate in relation
to cost of transporting wastematerials

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KOKUYO Group CSR Repor t 2013

Environmental management at group companies based on ISO 14001 Group Multi-site
Certification
In 2004, the scope of environmental management system registration was enlarged to cover all major consolidated
subsidiaries in Japan. This resulted in a multi-site certification system that encompasses planning, R&D, manufacturing,sales and service, and warehousing and shipping operations. The environmental management system is structured toreflect the level of the environmental impact while preserving consistency across the KOKUYO Group. Companies with arelatively large environmental impact and factories are classified as individual units. Companies with a relatively small
impact are classified as common units. In addition, the environmental management system reflects the unique aspects of
the activities of each group company. This allows companies to perform environmental management that matches theiroperations, such as by establishing goals based on each company's business plan. The MELON environmental
documentation and record management database system is used to handle the larger workload resulting from the broader
registration scope. Using this system increases the ease, efficiency and accuracy of document management and access.

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KOKUYO Group CSR Repor t 2013

Compliance with industry guidelines and voluntary standards to prevent pollution
The KOKUYO Group performs internal audits in two stages: audits performed by operating companies and second-party
audits performed by the ISO Promotion Secretariat. Ensuring compliance with laws and regulations is the highest priority ofthese audits. Group audits also undergo ISO 14001 third-party audits and the CSR Report is checked by a third party. As aresult, it was determined that the specifications of a portion of the products of KOKUYO Furniture that were being
manufactured and sold did not meet the requirements of Law on promoting Green Purchasing(*). To prevent recurrence of
this issue, KOKUYO is now conducting strict supervision of its product-related information.
* Law Concerning the Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities

Internal Auditing
Year ofimplementation

Third-Party Inspection (ISO 14001)
2011

2012

Number of sites
subject to audits

78

75

・Primary audit

60

59・Secondary audit

18

16

Items cited

35

52

15

13

20

39

Year ofimplementation
Number of sites
subject toinspection

2011(Periodic)

2012(Periodic)

17

24

Items cited for improvement
・Slight deficiency

・Slight deficiency
items
・Items forcorrection

0

0

16

26

Strong points(Particularly good
points)00Good points(Good points)

3

7

items
・Improvement
opportunities

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KOKUYO Group CSR Repor t 2013

With the Global Environment (The environment)

Environmentally Friendly Products and Services
The KOKUYO Group is working on new environmental technologies and green procurement to in order to reduce theenvironmental load over the entire life cycle of its products.

Fiscal 2012 Activities
Continuing to Pursue the Reduction of the “Eco-Batsu” Mark to Zero
The KOKUYO Group started using the eco-batsu mark for products in the 2008 General Catalog. The mark is used forgroup products that are not sufficiently environmentally friendly in any of the stages of their life cycle: manufacturing,
Distribution, usage, and disposal. To give sufficient consideration to eco-friendliness, the Group set the objective ofremoving the eco-batsu mark from all its products. This goal was reached in the 2011 General Catalog and there havebeen no eco-batsu products since then, including in the 2013 catalog. In fiscal 2012, the examination for giving a productan eco-batsu mark became stricter. As a result, examinations revealed that two types of reception room chairs did not clear
the “use” category for products manufactured between January 2010 and October 2012. The reason is that the woodmaterials used were not equivalent to F☆☆☆☆. Improvements are now completed.

Further Progress
Eco-batsu activities go beyond manufacturing processes. Even for employees not directly involved in production, eco-batsu
creates a reason to reexamine how jobs are done, the utilization of office space and the proposals submitted to customers.
Since achieving the goal of removing the eco-batsu mark from its productss, group companies have been using the themeof “eco + creativity” to develop eco-products that surpass customers' expectations.

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KOKUYO Group CSR Repor t 2013

Provision of More Information about Chemicals Used in Hakadori Label products
Public interest in substances that affect the environment has been increasing
worldwide. For example, the EU has enacted the REACH regulations (*1) andJapan has revised restrictions concerning the use of chemicals. In particular, there
has been an increase in questions about chemicals of environmental concern
contained in labels used to identify electrical products, automotive parts and otheritems. KOKUYO received about 800 inquiries from customers in fiscal 2011 about
this subject. Recently, KOKUYO S&T has updated and expanded its lineup of
Hakadori brand labels. Along with these changes, this company has established thefollowing framework for quickly supplying customers with information about
substances of environmental concern in these labels.
1) Studies are performed to determine the use of substances of environmental
concern. KOKUYO obtains information about the composition of raw materials fromOA Label <HAKADORI Label> site

upstream companies, determines the intentional use of REACH substances of very
high concern (SVHC) (*2), conducts ICP analysis (*4) for the six restricted substances designated by the EU RoHS (*3),
and performs other activities.
2) Fixed formats have been established for four categories where there are a particularly large number of requests from
customers: Confirmation of Absence of the Six RoHS Restricted Substances; REACH Regulations SVHC Study Report;
Analysis Report for the Six RoHS Restricted Substances; and Product Information Sheet (*5). Customers can use theInternet to ask for any of these forms and the information will be submitted using e-mail.
The KOKUYO Group plans to further increase the number of products for which information about substances ofenvironmental concern is provided.
*1 REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) is a European Union regulation concerning chemicals
and their safe use.
*2 REACH SVHC: Substances of very high concern (SVHC) are substances that may have a severe effect on health or the environment.
KOKUYO performs studies to monitor all SVHC substances as of the seventh candidate list (2012).
*3 RoHS directive: The RoHS (Restriction of Hazardous Substances) directive is a European Union regulation that restricts the use of certain
hazardous substances in electrical and electronic equipment. The directive applies to six substances: lead, mercury, cadmium, hexavalentchromium, polybrominated biphenyls (PBBs) and polybrominated diphenyl ethers (PBDEs).
*4 ICP analysis: Inductively coupled plasma (ICP) is a testing method for precisely measuring the amount of the six RoHS restricted substancesand other substances. The results of this analysis are called ICP data.
*5 Product information sheets: Prepared based on the format for safety data sheets (SDS; formerly MSDS), these sheets list a variety of
information concerning a particular product.
*6 Label showing product information manufactured according to SDS (Safety data sheet) and former MSDS form

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KOKUYO Group CSR Repor t 2013

Benefits of the Intelligent Work Lighting System
Intelligent work lighting (IWL) systems are furniture lighting systems that can light the area around a piece of furniture (adesktop and nearby area) without relying on a building's lighting equipment. Task lighting is used for the desktop andambient lighting for around the chair. Using this combination produces a sense of brightness in order to create a pleasantenvironment for work. The result is comfort along with energy conservation. Following the Great East Japan Earthquake,there has been substantial demand in Japan for ways to cut electricity and other energy use in offices. Due to the strong
interest in IWL systems, KOKUYO's has sold more than 2,000 units since these systems were introduced in 2011.
Collectively, the use of these systems has lowered CO2 emissions by approximately 52 tons.

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KOKUYO Group CSR Repor t 2013

With the Global Environment (The environment)

Resource Saving and Recycling
KOKUYO is taking measures to promote the idea of Reduce – Reuse – Recycle by efficiently using limited resources inorder to further the development of a recycling-based society.

Summary for Fiscal 2012
Higher Recycling Rate
The volume of waste materials at the KOKUYO Group including all consolidated subsidiaries, was 17,472 tons in fiscal
2012 (including 115 tons at non-consolidated sales companies). The number of companies used to calculate this figure isdifferent than in fiscal 2011. Compared with fiscal 2011, waste materials increased 847 tons and the recycling rateincreased by 0.9 percentage point to 97.4%.

Strict Adherence to Proper Disposal of Waste Materials
The responsibilities of general contractors for the processing of construction site waste materials are clearly defined andobligations of companies that generate waste materials are becoming even stricter. In fiscal 2012, the KOKUYO Group
worked on determining the volume of waste and recycling rate for construction sites. The total amount of waste materials
was about 3,000 tons and the recycling rate was approximately 90%. In addition, the KOKUYO Group Guidelines for
Processing Waste Materials was revised for the first time in eight years. We will continue to take actions aimed at properly
disposing of waste materials and achieving the medium to long-term goal of a recycling rate of 100%.

Reuse and Recycling of End-of-Life Products
When we deliver products, we pick up products for disposal from customers andrecycle or reuse these items depending on their condition. In fiscal 2012, KOKUYO
Logitem collected 1,065 tons of office desks and chairs and other used products.
Eleven tons were reused and 584 tons were dismantled and sorted for recycling.

Used chair being disassembled andsorted for recycling

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KOKUYO Group CSR Repor t 2013

When we have furniture that we really love, we want to continue to use it
for a lifetime, even if it has to be repaired sometimes. Also, if we use
furniture for a long time, we do not need to waste energy or effort indisposing of it. That is also good for the environment. Related to theseideas, ACTUS is conducting “activities that change comfort into ecofriendliness” that it has named the “EcoCochi Plan.” It involves
developing products that have a long useful life, are completely safe andhave no ill effects on human beings, are integrated into recycling
activities, and for which after-sales service is easy to access. As a result of this EcoCochi Plan, customers areable to choose furniture that is perfectly safe, as a matter of course, and gentle on the environment.
* Related information：「EcoCochi Plan」

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KOKUYO Group CSR Repor t 2013

With the Global Environment (The environment)

Global warming preventive measures
KOKUYO is taking measures to significantly cut the amount of greenhouse gasses it emits in order to realize a low carbon
society.

Summary for fiscal 2012
The KOKUYO Group's CO2 emissions in fiscal 2012 totaled
25,760 tons, 708 tons more than in fiscal 2011. Emissions arecalculated for the existing scope of operations and use theelectricity emissions factor of 0.378 kg-CO2/kwh, which is theoverall power average in 2000 reported by the Federation ofElectric Power Companies. Based on estimates, there wereemission reductions of 1,179 tons due to operational
improvements and 326 tons due to equipment improvements.
Manufacturing operations and closing and consolidating facilities
raised emissions by 2,213 tons. As a result, there was an effective
reduction in CO2 emissions of 1,505 tons from operational andequipment improvements. Consequently, excluding the effect of
production activities, emissions were down 5.6% from theprevious fiscal year, well above the target of 3.6%.
Looking at sources of CO2 emissions, there was a 604 ton
decrease at factories because of higher manufacturing efficiency
and other improvements. However, factories recorded a net increase in emissions of about 1,355 tons because growth inproduction volume raised emissions by 1,959 tons. For distribution activities, although emissions increased 380 tons
because of the higher volume of operations, there was a net reduction of 126 tons due to heightened measures toconserve electricity and other energy use. At offices, emissions were down 521 tons because of the more efficient use ofheating and cooling systems and the effective use of heat storage. Additionally, to use energy more efficiently, we oversee
unit energy consumption, which is obtained by dividing energy consumption by sales. In fiscal 2012, our unit energy
consumption was 3.3% less than in fiscal 2011.

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KOKUYO Group CSR Repor t 2013

Global warming preventive measures at factories
Operational improvements at factories lowered CO2 emissions by 559 tons. Examples of activities include replacing productmolds faster, reviewing compressor operations, performing inspections, strictly following operating rules for production
equipment, and conducting energy checks to reduce waste. Installing energy-conservation equipment like inverters andLED lighting cut emissions by 45 tons. Overall, factory CO2 emissions were 1,355 tons higher than in fiscal 2011, the resultof increases of 1,188 tons in Japan and 167 tons at factories in other countries. However, higher production volume raisedemissions by 1,959 tons, resulting in a net increase of 1,355 tons after deducting the 604 ton reduction from operationaland equipment improvements.

Global warming preventive measures for distribution
Emissions associated with distribution (storage and shipments) were 126 tons less than in fiscal 2011. Constant measures
to conserve energy resulted in operational improvements that cut emissions by 156 tons. Equipment improvements such as
using energy-efficient lighting fixtures and reviewing the proper lighting of distributing centers lowered emissions by 221
tons. At the KOKUYO Logitem Ina Distribution Center, which has an automated multilevel warehouse, a power demand
monitoring system was installed to hold down this facility's peak electricity use. Distribution CO2 emissions increased 383
tons in fiscal 2012 because of the larger volume of operations. Overall, though, there was a net reduction of 126 tons after
including the declines of 377 tons from operational and equipment improvements and 132 tons from the closing andconsolidation of distribution facilities.

Global warming preventive measures at offices
Offices lowered CO2 emissions by 521 from the previous fiscal year. To do this, a review of the methods of operating
heating and cooling systems, a review of working styles, and activities like days for no overtime and going home early were
implemented There were also measures to reduce electricity use, such as by replacing lighting fixtures with LEDs. At the
Shinagawa office, an electric power visualization system is used to lower peak daytime power use through the efficient
operation of heating and cooling systems and heat storage tanks. In addition, a program that encourages people to use
public transportation for sales activities cut gasoline use by 22%, which is a 278 ton reduction in CO2 emissions. In fiscal
2012, the cool biz and warm biz campaigns were combined into a smart biz campaign that takes place all year.

Major increase in CO2 as emission figures deteriorate
If the figures for each of the various countries on the greenhousegas (GHG) protocol website made public by the World BusinessCouncil for Sustainable Development and the World Resource
Institute are adopted as the figures for the CO2 emission
coefficients and added to the Japanese CO2 emission coefficients
based on the Law Concerning Promotion of Global WarmingCountermeasures (figures by electric power utility in fiscal 2012
and actual coefficients in fiscal 2011), then the total rises 5,345
tons, to 31,105 tons.

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KOKUYO Group CSR Repor t 2013

All consolidated subsidiaries now included in emission calculations
Starting in fiscal 2012, the KOKUYO Group is including all consolidated subsidiaries in the calculation of CO2 emissions. As
a result, emissions totaled 40,954 tons, including 1,839 tons at non-consolidated sales companies. Extending emission
reporting to more companies and using a less favorable emission coefficient have resulted in significant changes for the
KOKUYO Group. Consequently, we believe that the medium-term goals for emissions will have to be reexamined.

KOKUYO Product Shiga has a strong commitment to protecting theenvironment, particularly with regard to nearby Lake Biwa. The company
recently installed a solar power system and sells all of this renewableenergy to the electric utility. Another benefit of this system is the ability
to gain know-how about internal power generation and storage in orderto establish a foundation for stable production activities in the future.
KOKUYO has installed 1,020 solar
panels on the roof of its Building C

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KOKUYO Group CSR Repor t 2013

With the Global Environment (The environment)

Biodiversity
The KOKUYO Group strives to give proper regard to biodiversity in its business activities and works to reduce its impact on
the natural habitat.

KOKUYO Group's Basic Policy for Timber Procurement
In 2011, the KOKUYO Group prepared its Basic Policy for Timber Procurement and clarified its stance regarding thesustainability of forest resources that are the most significant of the Group's important raw materials. Since its founding, the
KOKUYO Group has broadened and developed its business activities using forest-derived materials, including paper
production. KOKUYO is fully aware of the roles that forests have played and will continue to play regarding global warming
and biodiversity. KOKUYO will aim to develop in harmony with forest resources as it gives proper regard to the rational
procurement of materials, transparency, and sustainability.

The KOKUYO Group procures forest-derived materials according to the following policy and is working to
make continuing improvements.
1. Aim for highly transparent materials procurement, with an awareness of the illegal cutting and illegaltransactions issues in the timber trade.
2. Procure material through more appropriate supply chains to support sustainable use of forest resources.
3. Based on an awareness of the social value and roles of forest resources in the region, procure materials
with due consideration for maintaining supply and preservation of resources.

ReEDEN Project
The KOKUYO Shiga Plant, one of the KOKUYO Group's principal manufacturing
facilities, engages actively in environmental preservation projects. One of thesereceiving special emphasis is the ReEDEN Project, which began in 2007 and aims
to promote the use of the yoshi, or the common reed plant, which grows along theshores of nearby Lake Biwa, and conduct an educational program about this plant
species. The yoshi absorb CO2, nitrogen, and phosphorous and thereby help topurify the lake's water. It is, therefore, indispensable for preserving the habitats ofother living organisms in the lake. KOKUYO took a further step in this project byusing yoshi to make paper and conduct activities to raise environmental awarenessabout preserving Lake Biwa.

82

Yoshi (reed) plants grown to one meterin height in May

KOKUYO Group CSR Repor t 2013

Protecting Lake Biwa by Expanding Use of "Yoshi" Reed Plants
Drawing on KOKUYO's production technology and the development capabilities of
paper manufacturing companies, KOKUYO is cultivating yoshi, using it in the
production of industrial products, including copy paper and notebooks, and selling it
at appropriate market prices in the ReEDEN brand series. In addition, KOKUYO
has developed higher-value-added products, such as paper for calling cards using
100% yoshi pulp and yoshi calligraphy pens. The objective of these activities is topromote the use of yoshi to create markets that will contribute to preserving the environment. KOKUYO's ReEDEN seriesof products aims to create products and services that communicate the attractive aspects of Shiga Prefecture, and
KOKUYO's “Koko Cool Motherlake Selection 2012” was chosen by the prefecture as one of its official brands. In addition, a
portion of the sales of these products is donated to environment-related groups and used in activities to preserve yoshi.

Broadening the Circle of Friends Helping to Preserve Lake Biwa as Members of the Community
The “Network for Preserving Yoshi and Lake Biwa” was formed in 2009, and an office for this group was located in the
KOKUYO Shiga Plant. The purpose of the network is to contribute to preserving the natural environment of Lake Biwa
through a loose alliance of a wide range of companies, groups, and others. At the beginning, the network comprised only a
few companies as members, but now that more than 80 companies have joined, the network shows indications of having
an even broader scope of like-minded members. The main activities of the network include initiatives to preserve the yoshi
that play an important role in preserving the natural habitats and the water environment of Lake Biwa. Initially, a few
employees from the KOKUYO Shiga Plant began these activities by harvesting the yoshi several times during theappropriate season. Now, however, several hundred members of local environment-related groups and the network gather
together for harvesting. In addition, these members are working to develop even closer ties through introducing theenvironment-related issues of the region and environmental activities of network members. To further heighten awarenessof the environment and strengthen ties among the members, the network sends out a newsletter. Looking ahead, tocontribute broadly to improving the Lake Biwa environment, the network is examining a range of issues related to the lake
and, as members and others enjoy their activities in preserving the environment, is searching for new activities that willdraw the attention of the regional community.

ReEDEN series

Member of the “Network for Preserving
Yoshi and Lake Biwa”

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KOKUYO Group CSR Repor t 2013

Yui no Mori Project
The KOKUYO Shimanto Yui no Mori Project, which began in 2006 in the Shimanto region of Kochi Prefecture with thetheme of “creating a virtuous circle between the environment and the economy,” has the objectives of regenerating the
man-made forests that have deteriorated and revitalizing the areas that protect these forests. This project marked theseventh year since its inception in 2012.

Positive Effects of Forest Thinning Emerge
One of the indispensable aspects of forest protection activities is to make thepositive effects of forest thinning visible. To observe the effects of these thinning
activities over the long term, KOKUYO works with interested persons from the
Taisho-cho Forest Union, Shimanto High School, and Tsukuba University to
conduct annual monitoring surveys.
The sixth of these surveys was implemented in October 2012. Vegetation surveys,
which are one of the types of surveys conducted, are continuing in two specificlocations to determine the degree of growth thickness of vegetation, including talltrees, short trees, and herbaceous plants. In the October 2012 survey, it was found that one category of herbaceous
growth had declined from 90 to 68 and another category from 55 to 44, but, because the amount of sunlight has increased
due to thinning, it is believed likely that vegetation that thrives in sunnier locations will increase and the number of suchtypes of vegetation will also grow.

Expanding the Yui no Mori Project
To use the wood fiber cut in thinning activities effectively, KOKUYO Furniture has
worked in collaboration with the local Shimanto-cho Forest Union since 2000 to
manufacture and sell furniture made from wood from the forest. In addition,
KAUNET, the mail-order and online shopping company of the KOKUYO Group, hasbegun to sell products, mainly stationery items under the Yui no Mori brand, andthe number of these items as of 2012 was 98. To increase understanding of the
project, since 2008, KAUNET has created a system to allow customers to donate
some of the points they have earned to the project, and, in 2012, about 100
applications were made for donating points. In addition, beginning in February 2011, the “Yui no Mori 1% Gift Project” wasinaugurated and has continued to the present. Under the latter project, a portion of the sales of Yui no Mori brand products
is donated to the Midori no Bokin (Green Collection Drive) of Japan's National Land Afforestation Promotion Organization.
Although the Yui no Mori project began with only 100 hectares, in fiscal 2012, the land area covered by the project had
grown to about 3,400 hectares, and the cumulated area thinned had expanded to 883 hectares. The project received a CO2
absorption certificate from Kochi Prefecture, testifying that the forestlands had absorbed 2,078 tons of CO2. With thesupport of so many interested persons, we will continue to expand the Yui no Mori project.
Aiming for a virtuous circle between the environment and the economy, the Yui no Mori project will remain committed toaccepting the challenge of attaining its objectives.

84

KOKUYO Group CSR Repor t 2013

With the Global Environment (The environment)

Third-Party Verification Report
To obtain an independent opinion regarding the accuracy, transparency, consistency, validity, and completeness of theenvironmental performance data of the KOKUYO Group, we requested Bureau Veritas Japan Co., Ltd., to prepare a thirdparty verification report.

Summary of third-party verification report
The environment load data of 36 companies of the KOKUYO Group was subjected to a third-party verification at the
KOKUYO Head Office. In addition, on-site examinations of data measurement and management methods were conductedat the KOKUYO MVP Tottori Plant, the KOKUYO Furniture Mie Plant, KOKUYO Supply Logistics Kinki IDC (logistics
division), KOKUYO Engineering & Technology Kansai Branch (sales and service division), KOKUYO Vietnam, and
KOKUYO Camlin Tarapur Plant.
As a result of the verifications and examinations, KOKUYO received a rating of “assessable” for 13 cases, “improvement
opportunity” for 20 cases, and “request revisions” for 35 cases. KOKUYO is scheduled to respond proactively to increasing
the accuracy of information disclosure in those cases rated as “improvement opportunity.”85

KOKUYO Group CSR Repor t 2013

CSR Data*RYHUQDQFH
6KDUHV'LVWULEXWLRQ86

KOKUYO Group CSR Repor t 2013

CSR Data

Society
Reflecting the views of customers

Labor/Management Composition* As of December 31, 2011
* Data from KOKUYO Co., Ltd., KOKUYO S&T Co., Ltd., KOKUYO Furniture Co., Ltd., KOKUYO Engineering & Technology Co., Ltd., KOKUYOBusiness Service Co., Ltd., KAUNET Co., Ltd.

87

KOKUYO Group CSR Repor t 2013

Number of Employees Taking Leave for Childbearing and Senior Care
Fiscal year

2006

2007

2008

2009

2010

2011

2012

Male

0

4

6

1

1

3

1

Female

18

40

23

38

37

36

34

Male

0

0

0

0

3

1

0

Female

0

0

0

0

0

1

0

Leave for child rearing

Leave for senior care

* These figures cover KOKUYO S&T Co., Ltd., KOKUYO Furniture Co., Ltd., KOKUYO Marketing Co., Ltd., KAUNET Co., Ltd., KOKUYOEngineering & Technology Co., Ltd., KOKUYO Logitem Co., Ltd., and KOKUYO Supply Logistics Co., Ltd.
* Figures are compiled on the basis of the year when the leave time began.

Fiscal 2012 Lost Time Accidents

Accidents

Time off

Frequency rate*1

Accident severity
rate*2Mie Plant

3

30

5.12

0.051

Shibayama Plant

2

106

4.48

0.237

KOKUYO Product Shiga

0

0

0

0

KOKUYO MVP

1

26

1.95

0.051

IWAMI Paper Industry

1

40

5.54

0.222

Total

7

202

3.33

0.096

*1 Number of workplace deaths and injuries/Total working hours x 1 million*2 Number of working days lost/Total working hours x 1,00088

KOKUYO Group CSR Repor t 2013

CSR Data

Environmental Performance Data
Period covered
Fiscal 2012 (January 1, 2012, to December 31, 2012)
Guidelines Used for Reference
Ministry of the Environment, Environmental Report Guidelines (2012 Edition)
Ministry of the Environment, Environmental Accounting Guidelines (2005 Edition)
Global Reporting Initiative (GRI), Sustainability Reporting Guidelines
Organizational Units Covered
Beginning with 2012, the scope of coverage was extended to all consolidated subsidiaries.
However, since the targets for 2012 were set for the companies in Group A shown in the table below, only data on thisgroup has been disclosed here.

Consolidated subsidiaries

Other subsidiaries and affiliates

KOKUYO Co., Ltd.

AB

KOKUYO S&T Co., Ltd., KOKUYO Furniture Co., Ltd.,KAUNET Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYOEngineering & Technology Co., Ltd., KOKUYO Supply
Logistics Co., Ltd., KOKUYO Logitem Co., Ltd., KOKUYOKOKUYO K Heart Co., Ltd., and
KOKUYO-IK (Thailand), KTL

Product Shiga Co., Ltd., KOKUYO MVP Co., Ltd., KOKUYO
Vietnam Co., Ltd., KOKUYO (Malaysia) Sdn. Bhd., KOKUYO
Finance Co., Ltd., and KOKUYO International Co., Ltd.
ACTUS Co., Ltd., FOREST Co., Ltd., LmD International Co.,
Ltd., KOKUYO Commerce (Shanghai) Co., Ltd., KOKUYO(Shanghai) Management Co., Ltd., KOKUYO Furniture
Commerce & Trading (Shanghai) Co., Ltd., KOKUYO
Commerce (Shanghai) Co., Ltd. (Stationery Business),
KOKUYO International Asia Co., Ltd., KOKUYO International(Malaysia) Co., Ltd., KOKUYO Vietnam Trading Co., Ltd.,KOKUYO Camlin Co., Ltd., and LmD International Co., Ltd.

KOKUYO Hokkaido Sales Co., Ltd.,KOKUYO Tohoku Sales Co., Ltd.,KOKUYO Kitakanto Sales Co., Ltd.,KOKUYO Tokai Sales Co., Ltd.,KOKUYO Hokuriku Niigata Sales Co.,
Ltd., KOKUYO Sanyo-Shikoku Sales
Co., Ltd., and Heartland Co., Ltd.

A：The scope of coverage through fiscal 2011 was Group A and included KOKUYO Co, Ltd., 13 consolidated subsidiaries, and 3 othersubsidiaries and affiliates.
B：The scope of coverage from fiscal 2012 is Group B and includes KOKUYO Co., Ltd., 26 consolidated subsidiaries, and 10 other subsidiaries
and affiliates.

89

KOKUYO Group CSR Repor t 2013

Fiscal 2012 Actual achievements

Environmental
policyPrevention of global
warming

Goals and results for fiscal 2012
Evaluation
Goals
Over the previous year (except
impact on productivity) -3.6%

Actual achievements○-5.6% (Total amount +3.4%)

Unit requirement over thepreviousyear -2.6%

Sales unit requirement -3.3%

Resource saving &recycling

Survey of current situation forrecycling rate

47 sites completed out of 70 Recycling rate:
97.6%

Procurement,
development, andoffering of ecofriendly products

Maintain eco x zeroContinuing to maintain○○

Implement programs toincrease awareness of CSR
activities among employees

Information
disclosure andcommunication○e-Learning: 100%
understanding

Implemented CSR e-learning
Participation rate: 68%, understanding rate:
77%
Implemented Eco-den 3
Participation rate: 48%

Implement eco-activities withparticipation of all employees

Reduction in CO2 emissions: 2% from theprevious year○

Eco-den 3: Participation
rate of 70% or more
Cut CO2 emissions 10%
from the previous year
Quantify the load on theenvironment on a consolidated
basis

Quantified the load on the environment on aconsolidated basis
Moved up in the standings in the Nikkei
Environmental Management Survey to 81st(compared with 178th in the previous
survey)Received assessment of A in Buna no Mori
(Japanese Beech Tree Forest)
environmental questionnaire (also assessed
as A in the previous year)

Environmental
management○

Received ESG assessment of AAA in Tokyo
Keizai's CSR ratings
Received overall assessment of “4” in the
FTSE4Good rankings
Received CDP disclosure score of 85score of C
* Since the targets were set for Group A, information presented in this tableReceived
covers thisperformancegroup.

90

KOKUYO Group CSR Repor t 2013

Environmental friendliness efficiency indicators
The KOKUYO Group designates unique environmental
friendliness efficiency indicators as indices that cancomprehensively evaluate financial performance and impact on
the global environment. These indicators indicate “the extent towhich products and services are being offered to society withrespect to specific environmental loads” and correspond to thefollowing four items.
1.
2.
3.
4.

CO2 emissions
Final waste disposal
Usage of chemical substances subject to PRTR regulations
Water usage

Fiscal 2000 is taken as the baseline for each indicator and the progress status for each fiscal year can be determined.

Environmental friendliness efficiency indicators* The scope of reporting coverage through fiscal 2011 was Group A. From fiscal
2012, the scope of reporting coverage was expanded to Group B.
* The volumes of chemical substances subject to reporting under the PRTR
regulations were calculated based on the amounts reported by the KOKUYOGroup's business locations that are subject to reporting of such substances under
the PRTR regulations.

91

KOKUYO Group CSR Repor t 2013

About JEPIXJEPIX (Japan Environmental Policy Index) is a method ofquantifying the amount of different types of environmental loads
such as greenhouse gas emissions and air pollutants as single
indicators called Environmental Impact Points (EIP). The EIP is
calculated by multiplying the environmental load for each environmentally harmful chemical by the integrated coefficient
calculated from the ratio between Japan's environmental policy target and the actual amount of emissions (environmental
friendliness factor).

JEPIX* The scope of coverage through fiscal 2011 was Group A. From fiscal 2012, thescope of reporting coverage was expanded to Group B.

92

KOKUYO Group CSR Repor t 2013

Global warming preventive measures
CO2 emissions transition

CO2 emissions transition* These figures cover Group A.

* The scope of coverage through fiscal 2011 was Group A.
From fiscal 2012, the scope of reporting coverage was
expanded to Group B.

Volume of CO2 emissions according toVolume of CO2 emissions according tosources of emissions

types of emissions

CO2 Emission Volume by Country

93

KOKUYO Group CSR Repor t 2013

Resource saving & recycling measures
Waste materials recycling amount andfinal disposal amount

Source of waste materials* The scope of coverage through fiscal 2011 was Group A.
From fiscal 2012, the scope of reporting coverage was
expanded to Group B.

Types of waste materials (recycling rate inEmissions by Countryc)

94

KOKUYO Group CSR Repor t 2013

Chemical substances subject to PRTR regulations
Vol. released ⁄ transferred
Vol.

Official

Chemical name

No.

Vol.
Releasedhandled ⁄

Vol.

kg

released toin publicair ⁄ kgbodies ofVol.
transported
in sewers /water / kg

1

Zinc compounds

kg

Vol.
released toland ⁄ kg

Vol.
Sub-total ⁄Vol.

treated ⁄ kg treated ⁄ kg

kg

159.3

0.0

14.2

0.0

0.0

14.2

15.2

129.9

(water-soluble)

20

2-aminoethano

70.0

66.5

3.5

0.0

0.0

70.0

0.0

0.0

53

Ethylbenzene

0.5

0.0

0.0

0.0

0.0

0.0

0.0

0.5

Ethyl glycol monoethyl

0.1

0.0

0.0

0.0

0.0

0.1

0.0

0.0

201.1

185.9

0.0

0.0

0.1

186.1

0.0

15.0

57

ether

80

Xylene125

Chlorobenzene

7.0

0.1

0.0

0.0

0.5

0.6

0.0

6.4

134

Vinyl acetate

444.4

28.7

2.8

4.2

17.3

53.0

0.0

391.4

207

2,6-di-tert-butyl-4-cresol

4.8

0.0

0.0

0.0

0.0

0.0

0.0

4.8

1,3,5−

0.2

0.0

0.0

0.0

0.0

0.0

0.0

0.2

297

trimethylbenzene

300

Toluene

168.4

94.0

0.0

0.0

1.4

95.4

48.4

24.6

302

Naphthalin

0.3

0.0

0.0

0.0

0.0

0.0

0.0

0.3

309

Nickel compounds

12.0

0.0

0.0

0.0

8.4

8.4

0.0

3.6

354

Di-n-butyl phthalate

364.3

0.0

0.0

0.0

3.1

3.1

0.0

361.2

392

N-hexane

777.3

759.0

0.0

0.0

0.5

759.5

0.0

17.8

403

Benzophenone

36.1

0.0

0.0

0.0

0.0

0.0

0.0

36.1

407

Polyalkyl ether

810.2

588.2

0.0

0.0

222.0

810.2

0.0

0.0

410

Polynonylphenyl ether

14.8

12.9

0.0

0.0

0.1

13.0

0.0

1.7

Methylenebis

71.6

0.0

0.0

0.0

0.0

0.0

0.0

71.6

3,142.3

1,735.4

20.5

4.2

253.4

2,013.5

63.6

1,065.2

447

diisocyanate

Total* The volume of PRTR designated substances which were handled, released⁄ transferred, disposed of, recycled or consumed which were usedby the PRTR Law Notification Office. For the calculation methods, see the Ministry of the Environment/Ministry of Economy Trade andIndustry's “PRTR Release Estimation Methods Manual version 4.1 (March 2011)”* “Volume treated” refers to those PRTR designated substances which were modified by way of incineration, neutralization, breaking down,
reactive process, etc.
* “Volume of consumption” refers to the volume of PRTR designated substances which were modified by way of reaction into other substances,incorporated into products or moved off-site with products.

95

KOKUYO Group CSR Repor t 2013

Environmental Load Material Flow

* The scope of disclosure coverage was Group B.

96

KOKUYO Group CSR Repor t 2013

Input items
Indicator

Unit

Calculation method

GJ

Power, gas (city gas, LPG, natural gas), oil (gasoline, light oil, kerosene)
Daytime power values from the Ordinance of Enforcement of the Energy Conservation Law(effective from April 1, 2008) were used for power unit calorific value.
Values taken from the Ministry of the Environment and Ministry of Economy, Trade andIndustry's “Calculating Greenhouse Gas Emissions/Report Manual ver. 3.2 (April 2011)”
were used for gas and oil unit calorific values.

Volume ofenergyused

Water

1,000m3

Tap water, water for industrial use

Substance
input

Tons

The volume of raw materials used to manufacture products

Overallsales
volume10,000tons

Data from furniture and stationery products (excluding KOKUYO Camlin)

packagingTons

The volume of packaging material used to package products

materials

Output items
Indicator

Unit

Calculation method

Tons of
CO2

The volume of CO2 emissions that occur through the use of power, gas and oil.
Coefficients based on the Law on Promotion of Measures to Cope with Global Warming(actual emission coefficients for each power company for fiscal 2011) were used to
calculate CO2 emission coefficients from power generation in Japan.
Coefficients for each country covered on the GHG Protocol website, released by the World
Business Council for Sustainable Development and the World Resources Institute, wereused to calculate CO2 emission coefficients from overseas power generation.
Values taken from the Ministry of the Environment and the Ministry of Economy, Trade andIndustry's “Calculating Greenhouse Gas Emissions⁄Report Manual ver. 3.3 (May 2012)”
were used to calculate CO2 emission coefficients from gas and oil.
The ton⁄kilo method and the fuel consumption method were used in tandem to calculate
the volume of CO2 emissions arising from distribution (consigned transportation)

TonCO2e

Emissions of greenhouse gases (CO2, CH4, N2O) related to production activities, but
excluding such emissions from energy sources, have been converted to a CO2 basis.
Values taken from the Ministry of the Environment and the Ministry of Economy, Trade andIndustry's “Calculating Greenhouse Gas Emissions⁄Report Manual ver. 3.3 (April 2012)”
were used for emission coefficients.

Tons

Volume of emissions from smoke- and soot-producing facilities at manufacturing plants

Tons

The volume of discharged waste (emissions) is the total amount of waste and valuable
substances discharged from business establishments.
Recycle volume is the total, out of the volume of discharged waste (emissions), of thatwhich has been recycled through material or thermal recycling, to which is added thevolume of valuable substances.
The final waste volume is the total, out of the volume of discharged waste (emissions), ofwaste disposed of either by simple incineration or direct landfill.

1,000m3

Waste water discharged to areas of water for public use and into the sewerage systemkg

Of plants in Japan, the volume of effluent discharged to areas of water for public use byplants with a legal obligation to measure water quality.

Volume ofCO2released byenergyusage

Othergreenhousegases

SOx, NOx

Waste

Wastewater
COD, BOD

97

KOKUYO Group CSR Repor t 2013

Other items
Indicator
Overalltransportation
volumeUnit

Calculation methodTon⁄kmAmong subcontracted transportation, this figure is the total for domestic transportationand the volume of transportation in Malaysia related to transport of furniture products,
stationery products, transport related to Kaunet mail order deliveries, and transportation of
ACTUS products.

Cyclical water
use at plants

m3

The volume of water used in a cyclical way (i.e. recycled) on business premises

Volume ofcyclicalresource use
on premises

Tons

The volume of recycled resources such as packaging materials etc. on the businesspremises of KOKUYO Logitem Co., Ltd and KOKUYO Supply Logistics Co., Ltd

Collected
used
products

Tons

The volume of used products collected from customers by KOKUYO Logitem Co., Ltd.

Re-use ofusedproducts

Tons

The volume of re-used products from the used products collected from customers by
KOKUYO Logitem Co., Ltd.

98

KOKUYO Group CSR Repor t 2013

Sites with ISO 14001 Certification

No. Company name

Site name

No. Company name

Site name1

Head office

39

Head office40

Nagoya logistics
center

2
3

KOKUYO

4
5
6
7
8
9
10

Kasumigaseki office
Nagoya office
Shinagawa office

KOKUYO K HeartKOKUYO S&T

KOKUYO MVPKOKUYO Product
Shiga

Tottori plant44

Aoya plant

45

Head office46

Kansai branch

47

ChuShikoku branch

48

Kyushu branch

49

Head office50

Tachikawa office51

Chiba office

52

Saitama office

53

Yokohama office54

Nagano office

55

Nagoya office

56

Shizuoka office57

Osaka office13

Kasumigaseki office
Osaki office15

Nagoya office16

Mie plant

17

Shibayama plant

18

Head office19

Sendai delivery center

20

Gunma delivery center

21

Keihin delivery center

22

Shin Chiba delivery center

23

Shiga delivery centerIna delivery center

26

Nagoya delivery center

27

Fujiwara delivery center

28

Okayama delivery center

29

Saga delivery center

30

Minato delivery center

31

Head office

32

Ibaraki delivery center

33

Tokyo Metropolitan IDC

34

Chubu IDCKOKUYO Supply
Logistics

58
59

Mie delivery center

25

35

Sapporo business

43

Shinagawa office

KOKUYO Logitem

Head office

Shinagawa office

12

24

center42

Head office

Head office (including WS)

KOKUYO Furniture

Fukuoka logistics

41

Head office11

14

KAUNET

Shiga NDC

36

Osaka Konan delivery
center

37

Kyushu IDC

38

Kinki IDCKOKUYO Engineering &Technology

KOKUYO Marketing

Tohoku branch
Chubu branch

Kyoto office
Kobe office60

Wakayama office61

Hiroshima office

62

Yamaguchi office

63

Matsue office

64

Fukuoka office65

Nagasaki office

66

Kagoshima office67

Okinawa office68

Miyazaki office

69

KTL

Head office70

KOKUYO (Malasia)

Head office71

KOKUYO IK Thailand

Head office

72
73

99

officeKOKUYO Camlin

TarapurSamba

KOKUYO Group CSR Repor t 2013

Environmental accounting(Unit: Millions of yen)

Environmental accounting
Environment-related
investments

Item

2011

Costs

2012

Effects

2011

2012

2011

Total
2012

2011

2012

422

308

5,566

6,029

0

0

5,988

6,337

Global warming
prevention

1,587

1,181

405

564

-2,439-2,727-447-982

Saving resources
and recycling

140

324

25,17329,519-12,713-17,482

12,60012,361

Procurement andprovision ofgreen products

0

0

5,498

10,917

-142

0

5,356

10,917

Research studies
intoenvironmental
technology

0

0

6,295

3,146

0

0

6,295

3,146

Environmental
communication

0

0

4,037

2,621

0

0

4,037

2,621

Setting up
management
structures

34

0

4,745

4,461

0

0

4,779

4,461

Environmental

0

0

144

358

0

0

144

358

2,183

1,813

51,86357,616-15,294-20,20938,752

39,220Pollution
prevention

damageresponse
Total* The scope of reporting coverage through fiscal 2011 was Group A. From fiscal 2012, the scope of reporting coverage was expanded to GroupB.

Breakdown of economic effects
Item

Content of counter measures

2011

The effect of introducing energy-saving facilities

2012

-493

-1,759The effect of improving operations-1,946-968

Income from sorting and recycling of wastematerials-9,497-14,491

Waste reduction-3,216-2,991-142

0-15,294-20,209

Global warming prevention

Saving resources and recycling

Procurement and provision of green
products

Cost reductions achieved through the use ofrecycled items

Total

100

KOKUYO Group CSR Repor t 2013

CSR Data

Reports by Business Site
Reports on Business Sites in Japan
KOKUYO measures the effects on the natural environment of the activities of its principal business sites in Japan andoverseas and uses this information in considering appropriate policies, setting objectives, and in other activities. KOKUYO
discloses such information on five manufacturing plants in Japan. In fiscal 2012, total CO2 emissions volume at these fivedomestic plants exceeded the level of the previous year because of the effects of increases in production and shifts tointernal production.
* In tables in this report, the figure “0” indicates that numbers have been rounded off to zero. Also, “-” indicates there are no figurescorresponding to this item.
* Effluent emissions are disclosed herein for those business sites where measurement of such emissions is required by law. Measurement at the
KOKUYO Product Shiga plant is not required by law; however, because abnormal pH values were discovered there in fiscal 2007, emissions
have been disclosed separately.

Reports on Business Sites Overseas
Although CO2 emissions increased in fiscal 2012 because of higher production at KOKUYO-IK (Thailand), both plants in
Malaysia and Vietnam engaged in activities to restrain emissions. As a result, total CO2 emissions of KOKUYO's threeoverseas plants reported only a slight increase.
Please note that in fiscal 2012, in addition to the three principal overseas plants, data will be gathered on the fiveproduction facilities of KOKUYO Camlin, and the resulting emissions data will be disclosed.

101

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO Furniture (Mie Plant)
Location

2012, Nishitawara, Nabari-shi, Mie Prefecture

Principal
products

Steel desks, low partitions, etc.

Commencement

May 1993

of operations
145,977m2

Site area

InputsFiscal 2011

Fiscal 2012

Volume of energy inputs

76,449GJ

92,298GJ

Fuel

27,089GJ

34,468GJElectricity

49,360GJ

57,830GJ

City/well water

34,000m3

43,000m3

Fiscal 2011

Fiscal 2012

CO2

3,942t

5,041t

SOx

0.02t

0.02t

NOx

0.44t

0.44t

Total waste volume

817t

933t

Reuse/recovery

815t

932t

Final disposal

2t

1t

Volume of effluent

21,000m3

24,000m3

Emissions into public
water areas

21,000m3

24,000m3--

Hydrogen ion
concentration

pH 7.8pH 7.2~7.7COD

7.3mg/L

10.4mg/L

BOD

1.5mg/L

2.3mg/L

Suspended solids (SS)1.3mg/L

1.0mg/L

EnergyWater resources
Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies ofwater

Emissions into sewage
systems

Restricted items emitted
into bodies of water

102

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO Furniture (Shibayama Plant)
Location

3155-4 Ohdai, Shibayama-machi, Sanbu-gun, Chiba
Prefecture

Principal
products

Room dividers, low partitions, cabinets, etc.

Commencementof operations

June 1994

Site area

73,734m2

InputsFiscal 2011

Fiscal 2012

Volume of energy inputs

89,576GJ

106,398GJ

Fuel

42,924GJ

50,457GJElectricity

46,652GJ

55,941GJ

City/well water

14,000m3

18,000m3

Fiscal 2011

Fiscal 2012

CO2

3,893t5,117t

SOx

-

-

NOx

-

-

Total waste volume1,925t2,356tReuse/recovery

1,921t2,356tFinal disposal

4t

0t

Volume of effluent

9,000m3

12,000m3

Emissions into public
water areas

4,000m3

6,000m3

Emissions into sewage
systems

5,000m3

6,000m3

Hydrogen ion
concentration

pH 6.9pH 7.3COD

5.0mg/L

3.6mg/L

BOD

9.0mg/L

0.7mg/L

Suspended solids (SS)4.0mg/L

1.0mg/L

EnergyWater resources
Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies ofwater

Restricted items emitted
into bodies of water

103

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO Product Shiga
Location

312, Kamigano, Aisho-cho, Echi-gun, Shiga Prefecture

Principal
products

Notebooks, plain paper copy paper, carbon duplication
books, loose-leaf supplies, etc.

Commencement

October 1980

of operations
114,294m2

Site area

InputsFiscal 2011

Fiscal 2012

Volume of energy inputs

69,137GJ

65,033GJ

Fuel

1,240GJ

1,064GJElectricity

67,897GJ

63,969GJ

City/well water

5,000m3

6,000m3

Fiscal 2011

Fiscal 2012

CO2

2,195t2,953t

SOx

-

-

NOx

-

-

Total waste volume2,343t2,492tReuse/recovery

2,343t2,492tFinal disposal0t0tVolume of effluent

5,000m3

6,000m3

Emissions into public
water areas--

5,000m3

6,000m3

Hydrogen ion
concentration

pH 6.8~8.0

pH 6.5~7.4

COD

4.7mg/L

2.0mg/L

BOD

3.5mg/L

3.9mg/L

Suspended solids (SS)

4.8mg/L

2.5mg/L

EnergyWater resources
Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies ofwater

Emissions into sewage
systems

Restricted items emitted
into bodies of water

104

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO MVP (Tottori Plant)
Location

201, Minami 2-chome, Koyama-cho,Tottori-shi, Tottori
Prefecture

Principal
products

Custom-made stationery

Commencementof operations

September 2007
(Predecessor company, KOKUYO Office Supplies
Industrial, began operations in December 1962)

Site area

38,389m2

InputsFiscal 2011

Fiscal 2012

Volume of energy inputs

18,804GJ

18,057GJ

Fuel2,690GJ

2,023GJElectricity

16,114GJ

16,034GJ

City/well water

9,000m3

7,000m3

Fiscal 2011

Fiscal 2012

CO2

1,359t1,194tSOx

0.0t

0.003tNOx

0.157t

0.075tTotal waste volume

880t

833t

Reuse/recovery

876t

832t

Final disposal

4t

1t

Volume of effluent

9,000m3

7,000m3

Emissions into public
water areas--

Emissions into sewage
systems

9,000m3

7,000m3

Hydrogen ion
concentration

Not subject to regulation

Not subject to regulation

COD

Not subject to regulation

Not subject to regulation

BOD

Not subject to regulation

Not subject to regulation

Suspended solids (SS)

Not subject to regulation

Not subject to regulation

EnergyWater resources
Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies ofwater

Restricted items emitted
into bodies of water

105

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO MVP (Aoya Plant)
Location

1114, Aoya, Aoya-cho, Tottori-shi, Tottori Prefecture

Principal
products

Custom made stationery

Commencement

September 2007

of operations(Predecessor company, KOKUYO Office Supplies
Industrial, Aotani Plant, began operations in April
2000)

Site area

34,607m2

InputsFiscal 2011

Fiscal 2012

Volume of energy inputs

12,307GJ

13,165GJ

Fuel

858GJ

1,018GJElectricity

11,449GJ

12,147GJ

City/well water

3,000m3

3,000m3

Fiscal 2011

Fiscal 2012

CO2

887t

861t

SOx

-

-

NOx

-

-

Total waste volume

377t

388t

Reuse/recovery

377t

388t

Final disposal0t0tVolume of effluent

3,000m3

3,000m3

Emissions into public
water areas

3,000m3

3,000m3

Emissions into sewage
systems--

Hydrogen ion
concentration

pH 6.2~6.9

pH 6.9~7.0

COD

Not subject to regulation

Not subject to regulation

BOD

2.5mg/L

4.65mg/L

Suspended solids (SS)3.2mg/L

7.2mg/L

EnergyWater resources
Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies ofwater

Restricted items emitted
into bodies of water

106

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO-IK (Thailand)
Location

529 Moo 4 Bangpoo Industrial EstateSoi
8C,T.Praksa,A.Muang,
Samutprakam 10280,Thailand

Principal
products

Clear books (transparent document holders), PP (plain
paper) files, tape adhesives, etc.

Commencementof operations

December 1996

Site area

12,679m2

InputsFiscal 2011

Fiscal 2012

Volume of energy inputs

31,557GJ

35,765GJ

Fuel

899GJ

890GJ

Electricity

30,658GJ

34,875GJ

City/well water

17,000m3

20,000m3

Fiscal 2011

Fiscal 2012

CO2

1,686t

1,853t

SOx

-

-

NOx

-

-

Total waste volume

557t

508t

Reuse/recovery

293t

267t

Final disposal

264t

241t

Volume of effluent

14,000m3

16,000m3

Emissions into public
water areas--

Emissions into sewage
systems

14,000m3

16,000m3

Hydrogen ion
concentration

pH 7.6pH 7.7COD

86.2mg/L

74.9mg/L

BOD

17.91mg/L

62.0mg/L

Suspended solids (SS)43.3mg/L

57.9mg/L

EnergyWater resources
Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies ofwater

Restricted items emitted
into bodies of water

107

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO (Malaysia)
LocationLot 79 & 83,Persiaran Bunga Tanjung 1,Senawang
Industrial Park, 70400 Seremban,
Negeri Sembilan Darul Khusus, Malaysia

Principal
products

Steel desks, low partitions, cabinets, etc.

Commencementof operations

October 1999

Site area

58,000m2

InputsFiscal 2011

Fiscal 2012

Volume of energy inputs

26,617GJ

25,945GJ

Fuel

11,040GJ

11,092GJElectricity

15,577GJ

14,853GJ

City/well water

10,000m3

9,000m3

Fiscal 2011

Fiscal 2012

CO2

1,612t

1,547t

SOx

-

-

NOx

-

-

Total waste volume

440t

351t

Reuse/recovery

373t

337t

Final disposal

67t

14t

Volume of effluent

6,000m3

3,000m3

Emissions into public
water areas

3,000m3

1,000m3

Emissions into sewage
systems

3,000m3

2,000m3

Hydrogen ion
concentration

pH 6.9pH 7.5COD

38.0mg/L

13.0mg/L

BOD

13.0mg/L

4.0mg/L

Suspended solids (SS)10.0mg/L

5.0mg/L

EnergyWater resources
Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies ofwater

Restricted items emitted
into bodies of water

108

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CSR Data
Reports by Business Site

KOKUYO Vietnam
Location

Land Plot B2-B7, Nomura-Haiphong IZ,
An Duong Dist.,Haiphong City,Vietnam

Principal
products

Notebooks, flat files, files for thick covers, tack labels,etc.

Commencementof operations

November 2006

Site area

51,544m2

InputsFiscal 2011

Fiscal 2012

Volume of energy inputs

29,282GJ

29,300GJ

Fuel

663GJ

681GJ

Electricity

28,619GJ

28,619GJ

City/well water

19,000m3

12,000m3

Fiscal 2011

Fiscal 2012

CO2

1,225t1,143t

SOx

-

-

NOx

-

-

Total waste volume1,073t985t

Reuse/recovery

1,073t974t

Final disposal

0t

11t

Volume of effluent

19,000m3

12,000m3

Emissions into public
water areas--

Emissions into sewage
systems

19,000m3

12,000m3

Hydrogen ion
concentration

pH 6.3pH 6.9COD

38.0mg/L

62.3mg/L

BOD

12.0mg/L

33.7mg/L

Suspended solids (SS)

Not subject tomeasurement

Not subject tomeasurement

EnergyWater resources
Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies ofwater

Restricted items emitted
into bodies of water

109

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO Camlin (Tarapur, India)
Location

MIDC Tarapur, Tal- Palghar, Dist- Thane, Pin- 401506

Principal
products

Art supplies, poster colors, crayons, lead formechanical pencils, etc.

Commencement

April 1974

of operations
Site area

10,045m2

InputsEnergyWater resources

Fiscal 2012
Volume of energy inputs

22,572GJ

Fuel

852GJ

Electricity

21,720GJ

City/well water

29,252m3

Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies of water

Restricted items emitted into
bodies of water

Fiscal 2012
CO2

2,128t

SOx

-

NOx

-

Total waste volume

0.8t

Reuse/recovery

0t

Final disposal

0.8t

Volume of effluent

29,252m3

Emissions into public water areas-

Emissions into sewage systems

29,252m3

Hydrogen ion concentration

pH 7.2COD

120.0mg/L

BOD

50.0mg/L

Suspended solids (SS)12.0mg/L

110

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CSR Data
Reports by Business Site

KOKUYO Camlin (Taloja, India)
Location

M.I.D.C Taloja Navi Mumbai - 410 208

Principal
products

Ink, stick paste, etc.

Commencement

April 1996

of operations
Site area

3,801m2

InputsEnergyWater resources

Fiscal 2012
Volume of energy inputs

4,568GJ

Fuel1,267GJElectricity

3,301GJ

City/well water

11,138m3

Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies of water

Restricted items emitted into
bodies of water

Fiscal 2012
CO2

401t

SOx

-

NOx

-

Total waste volume-

Reuse/recovery-

Final disposal-

Volume of effluent

11,138m3

Emissions into public water areas-

Emissions into sewage systems

11,138m3

Hydrogen ion concentration-

COD

Less than 100mg/L

BOD

Less than 100mg/L

Suspended solids (SS)-111

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO Camlin (Vasai, India)
Location

Rajprabha Udyog Nagar Building No. 4, Golani Naka,
Walive, Vasai (East) Dist.-Thane - 401 30

Principal
products

Markers, ball pens, gel pens, correcting pens,mechanical pencils, etc.

Commencementof operations

2009

Site area

3,528m2

InputsEnergyWater resources

Fiscal 2012
Volume of energy inputs

7,972GJ

Fuel

154GJ

Electricity

7,818GJ

City/well water

735m3

Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies of water

Restricted items emitted into
bodies of water

Fiscal 2012
CO2

758t

SOx

-

NOx

-

Total waste volume-

Reuse/recovery-

Final disposal-

Volume of effluent

735m3

Emissions into public water areas-

Emissions into sewage systems

735m3

Hydrogen ion concentration

Not subject to regulation

COD

Not subject to regulation

BOD

Not subject to regulation

Suspended solids (SS)

Not subject to regulation

112

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO Camlin (Samba, India)
Location

LANE NO. 9, SIDCO, PHASE - 1 I.G.C., SAMBA- 184
121

Principal
products

Art supplies

Commencementof operations

January 2008

Site area

10,040m2

InputsEnergyWater resources

Fiscal 2012
Volume of energy inputs

9,871GJ

Fuel

12GJ

Electricity

9,859GJ

City/well water

3,266m3

Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies of water

Restricted items emitted into
bodies of water

Fiscal 2012
CO2

941t

SOx

-

NOx

-

Total waste volume-

Reuse/recovery-

Final disposal-

Volume of effluent

3,266m3

Emissions into public water areas-

Emissions into sewage systems

3,266m3

Hydrogen ion concentration

pH 5.7~7.4

COD

125.0mg/L

BOD

20.0mg/L

Suspended solids (SS)83.0mg/L

113

KOKUYO Group CSR Repor t 2013

CSR Data
Reports by Business Site

KOKUYO Camlin (Jammu, India)
Location

101, Gangyal Industrial Area Phase II Jammu - 180004

Principal
products

Art supplies

Commencementof operations

April 2012

Site area-

InputsEnergyWater resources

Fiscal 2012
Volume of energy inputs

2,379GJ

Fuel-Electricity

2,379GJ

City/well water-

Outputs

Atmospheric emissions

Waste emissions

Emissions into bodies of water

Restricted items emitted into
bodies of water

Fiscal 2012
CO2

227t

SOx

-

NOx

-

Total waste volume-

Reuse/recovery-

Final disposal-

Volume of effluent-

Emissions into public water areas-

Emissions into sewage systems-

Hydrogen ion concentration

Not subject to regulation

COD

Not subject to regulation

BOD

Not subject to regulation

Suspended solids (SS)

Not subject to regulation

114

KOKUYO Group CSR Repor t 2013

CSR Data

Third-Party Assessments
Inclusion of Shares in SRI Indexes
In recent years, in the management of investment trusts, interest in socially responsible investment (SRI) has risen. Under
SRI practices, not just financial but also environmental and social aspects of corporate behavior, have become more
important as standards for making investment judgments. The world market for SRI is forecast to rise to US$26.5 trillion by
2015. Looking ahead, as SRI spreads more widely in Japan also, further growth in the size of the market is expected. At
present, KOKUYO's shares are included in the Morningstar socially responsible investing index (MS-SRI) as well as in the
FTSE4Good, ETHIBEL Pioneer, and ETHIBEL Excellence indexes「ETHIBEL Pioneer」 「ETHIBEL Excellence」「FTSE4Good」「Morningstar socially responsible investing index (MS-SRI)」

Ministry of Economy, Trade and Industry (METI) Awards: “Diversity Management Selection
100”
KOKUYO was selected for inclusion in the “Diversity Management Selection 100”
awards, which are sponsored by METI. These companies were chosen on thebasis of their creative innovation, increases in productivity, and other attributes thathave resulted from their employment of a diversity of human resources, including
women, foreigners, seniors, persons with physical and other challenges, andothers.
The companies included in the “Diversity Management Selection 100” varied widely
by size and industry, but all were highly evaluated for their active “diversity management” and “management power that
contributes to economic growth.” These awards were introduced this year with the aim of broadening the scope of activities
to promote diversity by recognizing publicly the “best practice” aspects of the diversity management of the companies
selected for the awards.

115

KOKUYO Group CSR Repor t 2013

This year, 43 companies were chosen from more than 160 making applications.
Under its corporate philosophy of “Enrich the world through our products andservices,” KOKUYO is striving to be a company that can grow by accepting each of
its employees as individuals with differing ways of thinking and values and, thereby,allowing them to draw fully on their diverse capabilities. KOKUYO will mark the108th year since its founding this year, but, because of the strong desire of its
founder, KOKUYO began to employ physically challenged persons before WorldWar II, or more than 70 years ago.
At present, KOKUYO K Heart Co., Ltd., which is a special corporation employing
challenged persons, is responsible not only for the printing and binding of catalogs
and leaflets but also has been assigned full responsibility for routing operations toallow the Group's other companies to concentrate on their core businesses.
KOKUYO K Heart is, therefore, playing an important role in raising the corporate

Yasuhiro Kuroda, Executive Vice
President of KOKUYO (right), andHidehiko Kuroda, President of KOKUYOK Heartland (left), attended the awards
ceremony to receive thecommemorative trophy.

value of the Group as a whole. To make this possible, KOKUYO K Heart offers awide range of working styles, including performing tasks at home, to challenged persons with a wide range of disabilities
and other special needs. In addition, another KOKUYO Group special company, Heartland Co., Ltd., is endeavoring topromote the employment of challenged persons and achieve stable management by having these persons engage in thehydroponic cultivation of salad spinach and forming a network for sales of the spinach under the “Heartland” brand. This
activity of Heartland was highly evaluated in the choice of KOKUYO for this award.
Looking ahead, for each and every employee to draw on his or her innate abilities, the Group will promote the mutual
recognition of a wide range of individual circumstances and values and work to create a work environment where adiversity of human resources can work.

Awards and Other Recognitions Received from Outside KOKUYO Group

Names ofcompanyNames of some of the awards received

The sponsor

Date

KOKUYO S&T

KOKUYO received the “GOLD BRANDS” award in
the Philippines

GOLD BRANDSCOUNCIL PHILIPPINES

March
2013

KOKUYO Camlin

KOKUYO's in-house newsletter “NewsCafe”
received a special recognition award in the ICE
Awards competition.

Shailaja Nair Foundation

October
2012

KOKUYO
Furniture

KOKUYO Furniture's Madre lobby chair designed
for waiting rooms received Germany's “Universal
Design Award 2012”

KOKUYO S&T

KOKUYO's “SMOOTHSTYLE” mobile watch and“X-ViZ” (pronounced “Cross Viz”) portablespeakers, both of which are sold under KOKUYO's
original “trystram” brand, received design awards
in Germany's “Red Dot Design Prize: Product
Design 2012.”

116

universal design GmbH、iF International Forum
Design GmbH

Design Zentrum
Nordrhein Westfalen

April
2012

March
2013

KOKUYO Group CSR Repor t 2013

Published by

KOKUYO Co.,Ltd.
CSR and Environmental management, Corporate Administrations
6-1-1 Oimazato-minami, Higashinari-ku, Osaka 537-8686, Japan

Direct inquiries to

KOKUYO Co., Ltd. Customer Center
Tel: +81-120-201-594

201306A08KH

2013-145