CSR Report 2013

Business Information
Corporate Data
Company name:
Headquarters:
Year of establishment:
Date of incorporation:
Representative:

Yamaha Corporation
10-1, Nakazawa-cho, Naka-ku, Hamamatsu
Shizuoka, Japan1887
October 12, 1897
Takuya Nakata, President and Representative
Director

Stated capital:
Number of employees(As of March 2013):

The Yamaha Group(As of March 2013):¥28,534 million
Consolidated: 27,886
Non-Consolidated: 4,506
Number of consolidated
subsidiaries: 72(including companies locatedoutside Japan)
Number of companies accounted
for by the equity method: 1

Business Segments
Musical Instruments

Electronic Devices

Yamaha manufactures and sells musicalinstruments, operates music schools andEnglish language schools, distributes
music and video content, operates arecord company and conducts otherbusiness such as publishing.

Yamaha manufactures and sells amusement
devices, audio and video LSIs for automotive-use
and home electronics, and geomagnetic sensors
for mobile equipment such as smartphones.

Audio Equipment

OthersYamaha manufactures and sells
audio equipment for consumer- andprofessional-use, online karaoke forprofessional-use, telecommunications
equipment such as routers, andsound communication devices suchas conference systems.

Yamaha’s other businesses include the Golf
Products business, the Automobile Interior Wood
Components business, the Factory Automation(FA) business, and Resort Facilities.

The Relationship Between Yamaha
Corporation, Yamaha Motor Co., Ltd., andYamaha Livingtec Corporation
Yamaha Motor Co., Ltd. (Yamaha Motor) manufactures and sells
motorcycles, marine products, snowmobiles, and other related
products. The company separated from Yamaha Corporation in 1955,
becoming an independent business, and as a result is not includedin the scope of this report. Yamaha Motor was previously recorded
as an affiliated company accounted for by the equity method.
Yamaha Motor was excluded from Yamaha’s scope of consolidation
as an equity-method affiliate following a reassessment of thecapital relationship between the two companies.
In addition, Yamaha Livingtec Corporation (YLT), which
manufactures and sells system kitchens and bathrooms as wellas other housing fixtures and equipment, was excluded from
Yamaha’s scope of consolidation on March 31, 2010. As a result,details of YLT have not been included in the Company’s reports
from the fiscal year ended March 31, 2011.

Key Financial Indicator Trends (Consolidated)
Net Sales by Segment and Net Income (Loss)
Net Sales by Segment and Net Income (Loss)■Musical Instruments■Audio Equipment■Electronic Devices
Instruments
Equipment■Net■Electronic
Devices■Musical
Products■Audio
Income (Loss)(right axis)■Lifestyle-Related■Others■Lifestyle-Related Products■Others■Net Income (Loss) (right axis)(Millions of Yen)
(Millionsof Yen)600,000(Millions of Yen)
(Millions of Yen)

100,000
100,000

600,000

366,941
366,941

300,000
300,000

4,122
4,122

0
0

2008
2008

2009
2009

2010
2010

2011
2011

2012
2012

50,00050,00000–50,000–50,000
FY
FY

Consolidated Net Sales by Region
Consolidated Net Sales by Region■Japan ■North America ■Europe ■Asia, Oceania & Other Regions■Japan ■North America ■Europe ■Asia, Oceania & Other Regions(Millions of Yen)
(Millionsof Yen)600,000

600,000

366,941
366,941

300,000
300,000

0
0

1

CSR Report 2013

2008
2008

2009
2009

2010
2010

2011
2011

2012
2012

FY
FY

CONTENTS
Editorial Policy
The Yamaha Group issues a CSR Report in order tocommunicate its CSR vision and initiatives to the Group’s
broad stakeholder base. Since we first published the reportin 2000, we have worked to prioritize information that isof greater interest based on our ongoing dialogue withstakeholders. We have continued to review the format of
the report each year since 2009, and have decided to takea two-pronged approach, posting detailed informationand environmental performance data on the website andpresenting key points more concisely in a printed report tomake it easier to read and digest. In preparing this report,
we referred to the Japanese Ministry of the Environment’s“Environmental Reporting Guidelines (2007 Version)” andthe Global Reporting Initiative’s “Sustainability Reporting
Guidelines (v. 3.0).”

Organizations Included in the Scope of Reporting
It is Yamaha Corporation’s intention to report to the fullest
extent possible on activities carried out by the organizations
that fall within the scope of its consolidated financial
accounting. The environmental protection activities
discussed in this report cover the 21 business sites (23,301
total employees, 84% of consolidated employees) that haveobtained ISO 14001 certification. Reported items other thanenvironmental protection and social contribution activities
are primarily activities by Yamaha Corporation, althoughcertain items focus on activities carried out by YamahaGroup companies. We will continue to expand the scope ofreporting on Group company activities.
Reports on the Yamaha Corporation Website
You can access the Yamaha CSR
Report web version at:

http://www.yamaha.com/
about_yamaha/csr/

Business Information… ………………………………………………… …1
Editorial Policy / Contents… …………………………………………… …2

Message from the President

3Group Management

5

Special Feature: Celebrating 125 Years in Business7

History of Yamaha’s Social Contribution Activities

Contributing to the Popularization and Development ofMusic and Musical Culture

11

Efforts to Popularize Music
Support for Music Education
Proposing Solutions that Employ Sound Technologies

13

Contributing to a Healthy Global Environment
Environmental Management
Environmental Consideration in Production Activities
Initiatives Aimed at Protecting Forests and Maintaining Biodiversity

15

Creating a Better Society
Contributing to Local Communities
Social Welfare Initiatives
Supporting Development of the Next Generation(Updated in September 2013)

Regarding Environmental Performance Data
Environmental performance data
including details not recorded inthis report can be found on the
Company’s website.

http://www.yamaha.com/
about_yamaha/csr/
environmental_data/(Updated in September 2013)

Reporting Period
April 1, 2012 to March 31, 2013
• The above period is referred to as fiscal 2012 in this report.
• Certain initiatives underway prior to fiscal 2012 and informationfrom April 2013 onward are also included in this report.

Next Scheduled Issue

Building a Corporate Culture that Helps Offer
Better Products and Services

17

Pursuing Customer Satisfaction
Appropriate Disclosure of Product Information
Expanding the Role of Diverse Human Resources
Promoting a Better Work-Life Balance
Maintaining Employee Safety and Health

Promoting Highly Transparent Management andMutual Understanding with Business Partners

19

Promoting Compliance Activities
Mutual Understanding with Business Partners
Fair and Timely Information Disclosure
Evaluation by Society
Third Party Opinion……………………………………………………… 21
Response to Third Party Opinion/Overview of the Company’s Website… … 22

We plan to issue the next CSR Report in August 2014.

CSR Report 20132

Message from the President
Strengthening CSR Through Our Business Processes

Aiming to Becomea “Trusted and Admired Brand”
Yamaha has chosen “CREATING 'KANDO' TOGETHER” as its
corporate objective and endeavors to create renewed “Kando”
and enrich culture through its business activities grounded in
the fields of sound and music. Yamaha marked its 125th
anniversary of the commencement of its operations last year.
The history of Yamaha started in 1887 when its founder, Torakusu
Yamaha, who was then a medical equipment technician,accepted a request for repair work on a broken organ. The
spirit of using one’s own strengths to contribute socially was
included in the Company creed that was established in 1939
and has been passed on from generation to generation as
the timeless corporate philosophy. Since then, we have been
providing a wide variety of products and services centeredon the fields of sound and music, and the “Yamaha” brand has
become popular throughout the world. As we move forward,
we will hold on to the philosophy inherited from ourpredecessors and aim to become a “trusted and admiredbrand” that creates “Kando” to meet and surpass expectations.

Putting into Practice CSR Management
Yamaha launched the “Yamaha Management Plan 2016,” a
new medium-term management plan, in April this year. In
this plan positioned as the “quantum leap phase,” we plan toengage in activities based on the basic management policies,“Attain continual growth,” “Strengthen profitability” to support
growth and “Enhance specialization and professionalism” tocreate new added value. Most importantly, in order for
Yamaha to develop its business globally, and in particularachieve long-term continual growth in emerging countries,
we must build a management based on CSR while taking
into consideration expectations of various stakeholders andsocial needs. For example, with the globalization of materials
and parts procurement, companies might unintentionallyplay a part in the violation of human rights or environmental
destruction through their supply chains. It is therefore crucial
to involve the entire supply chain in CSR, including working
partners. Hence, we plan to enhance not only CSR efforts
through our products and services but also our businessprocesses that create such values under the medium-term
management plan.

3

CSR Report 2013

Top Management Commitment

Furthermore, the most important element for Yamaha toalways meet social needs and enhance the value of its existence
is “people.” For this reason, it is our goal for all Yamaha employees
to be naturally infused with the spirit of CSR and for all operations
to lead to a sustainable society and the creation of new value.
For Yamaha to develop its business globally, it is also important
to continue to be involved in various undertakings, including
next generation development, welfare activities, and music
culture promotion around Japan and abroad as well as
contribute to the resolution of global issues such as global
warming and biodiversity.

Recognizing these issues, Yamaha signed the Global
Compact that comprises the basic principles of CSR in 2011, as
advocated by the United Nations. Based on the 10 principles of
the Global Compact in addition to the Yamaha Corporation
Group CSR Policy established in 2010, we are making the utmost
effort toward our unique activities, including the development
and manufacture of products that pursue efficient resource
utilization and environmental burden reduction as well as
support forest revitalization. We will continue to promote
activities to address social issues through these efforts.

Takuya Nakata
President and Representative Director
Yamaha Corporation

The United Nations Global Compact
The United Nations Global Compact is a strategic policy initiative
for businesses that voluntarily commit to aligning their operations
and strategies with 10 universally accepted principles in the areasof human rights, labour, the environment and anti-corruption. Top
management of assenting and participating businesses publicly
pledge their commitment and work consistently to achieve theobjectives espoused under the 10 principles. Yamaha sends fulltime staff to Global Compact Japan Network and cooperates in suchareas as running special-interest groups as a signed member of the
network since 2012.

The 10 Principles of the United Nations Global Compact
Human
RightsPrinciple 1: Companies should support and respect the protection of internationally proclaimed human rights; andPrinciple 2: Companies should make sure that their businesses are not complicit in human rights abuses.

LabourPrinciple 3: Companies should uphold the freedom of association and the effective recognition of the right tocollective bargaining;
Principle 4: Companies should support the elimination of all forms of forced and compulsory labour;
Principle 5: Companies should support the effective abolition of child labour; andPrinciple 6: Companies should support the elimination of discrimination in employment and occupation.

Environment

Principle 7: Companies should support a precautionary approach to environmental challenges;
Principle 8: Companies should take the initiative in having greater environmental responsibility; andPrinciple 9: Companies should encourage the development and diffusion of environmentally friendly technologies.

AntiCorruption

Principle 10: Companies should work against corruption in all its forms, including extortion and bribery.

CSR Report 20134

Group Management
The Yamaha Group is working to execute CSR-oriented management based on fairand sustainable practices.

Corporate Governance
Strengthening Governance and Developing
an Internal Control System

Basic Policy and Promotion System for
Risk Management

Yamaha is a company with a board of auditors as defined underJapanese law. With the General Shareholders’ Meeting as its
highest decision-making body, Yamaha has built a corporate
governance system (outlined in the diagram below) centeredon the oversight and supervision of management’s execution ofduties by the Board of Directors, and audits by the Board ofAuditors. Further, Yamaha has enhanced its governancefunctions by introducing an executive officer system, setting up
a Corporate Officers Personnel Committee, Risk Management
Committee, and corporate committees, convening twice amonth (in principle) Managing Council meetings, andestablishing an internal control system. In conjunction withconsistent audits conducted by the Company’s system offull-time auditors, these help raise the effectiveness ofgovernance through fair and equitable audits by highly
independent outside corporate auditors.
Yamaha has established an internal control system pursuant
to Japan’s Companies Act and the Enforcement Regulations of
the Companies Act. Yamaha seeks to achieve optimal corporate
governance in order to raise corporate value and the Yamaha
brand image. At the same time, the Company works to improve
the internal control system to raise business efficiency, increase
the dependability of Yamaha’s accounting and financial data,and strengthen compliance, asset soundness, and risk
management capabilities.
Further, Yamaha established the Group Management
Charter to clarify Group management policies. Also, competentdivisions are responsible for providing proper guidance andassistance with management in Group companies under theirjurisdiction based on Group Company Administrative Rule.
Subsidiaries shall confer and consult in advance with said
divisions, while administrative divisions of Yamaha Corporation
shall support this process.

Yamaha has chosen “CREATING ‘KANDO’ TOGETHER“ as its
corporate objective and has placed this as its highest corporate
philosophy. Yamaha perceives events that impede theattainment of the corporate objective as risks and implements
risk management based on the following policy.
1. We shall establish a structure and framework for risk
management and work to enhance responsiveness to risk andmaximize corporate value.
2. We shall identify, evaluate and reduce risk through risk
management activities during ordinary times, conduct
awareness-raising activities such as education and training,and share information on risks in order to permeate risk
awareness and foster risk sensitivity.
3. We shall prioritize people’s safety when risk occurs, andcoordinate with the local community to ensure sincere,appropriate and speedy response as a means to minimize theimpact of risk. In addition, we shall strive to ensure the stablesupply of products and services, continue business to theextent possible and contribute to the sustainable
development of society.
4. We shall work to prevent reoccurrence of risk that we haveresolved.
Yamaha Corporation has established a Risk Management
Committee as an advisory body to the company president
pursuant to the basic policy above. This Committee deliberates
on matters related to risk management from a Company-widestandpoint and reports to the company president. Subcommittees related to BCP and disaster countermeasures, internal
control, compliance and export screening have been establishedunder the Risk Management Committee to deal with importantmatters that are difficult for individual business divisions andadministrative divisions to cover during the execution of their basic
day-to-day duties, and implement risk management activities.

Corporate Governance Structure (As of June 26, 2013)
General Shareholders’ Meeting
Appointment/dismissal

Corporate Officers
Personnel
Committee

Request for
adviceReports

Appointment/dismissal

Board of Auditors
Board of Directors
6 persons(Incl. 3 Outside Directors)

Audit

4 persons(Incl. 2 Full-time Auditors)(Incl. 2 Outside Auditors)

Corporate Auditors’ OfficeAppointment/dismissal/supervision

Risk Management Committee
Managing Council
Corporate Committees

Request for
adviceReports

Appointment/
dismissal

Representative Director 1 person

Reports

Audit

Reports

CSR Report 2013

Accounting
Auditors• Consent to appointment• Judgments ofappropriateness ofaccounting audit
Accounting Audit

Instruction
Reports

Executive Officers 14 persons
Individual Business Divisions, Administrative Divisions, Group Companies

5

Appointment/dismissal

Internal Auditing DivisionInternal audit

CSR Management
In addition, the Group is working to educate employees
and boost awareness of CSR through training and by distributing
information. The aim is to deepen understanding of CSR among
all employees as well as raise social sensitivity and quality tofacilitate better CSR activities. We set up a webpage on theintranet to provide information to employees as needed
concerning CSR activities undertaken by Yamaha Group
companies, introduction of exceptional cases at other companies
and an explanation of CSR keywords, among other topics.

Group Management

The Yamaha Group focuses on corporate social responsibility(CSR). In specific terms, we express this policy commitment
across a wide range of areas including product quality, labor, theenvironment, IR and social contribution. In February 2010, weestablished the Yamaha Corporation Group CSR Policy, asummary of the Group’s approach toward CSR. Comprised offive key guidelines, this Policy outlines the Company’s
fundamental stance toward fulfilling its responsibilities to its
diverse stakeholders. Yamaha operates with this CSR policy as
the common philosophy for the Group.

Yamaha Corporation Group CSR Policy− Our Aim is “Creating ‘Kando’ Together”−
The objective of the Yamaha Corporation Group is to continue to create “Kando*” and enrich culture with technology andpassion born of sound and music, together with people all over the world.
Based on this Corporate Objective, Yamaha conducts its CSR activities according to the following guidelines
to further strengthen the bonds of trust with its stakeholders through its corporate activities and contribute to thesustainable development of society.
* ‘Kando’ is a Japanese word that signifies an inspired state of mind.

1

Yamaha provides support to people who want to perform music and people who want to enjoy it by contributing
to the popularization and development of music and musical culture.

2

Yamaha works to maintain a healthy global environment by understanding the significance of protecting thenatural environment, maintaining biodiversity, and reducing the burden on the environment, as well as promoting
the proper use of wood resources, and cooperating with forest protection activities.

3

As a “corporate citizen” that is a member of society, Yamaha contributes to creating a better society by actively
participating in many kinds of activities that further the development of the community and culture.

4

Yamaha complies with laws and high ethical standards, works to create an environment in which its personnel candraw fully on their sensitivities and creativity, and aims to build a corporate culture that will enable it to offer better
products and services.

5

For its shareholders, who support its corporate activities financially, Yamaha aims for a high degree of transparency
by disclosing management information and engaging in active and sustained communication. For its business
partners, Yamaha conducts transactions fairly and transparently, endeavors to deepen mutual understanding, andworks to build strong relationships of trust.

CSR Report 20136

Special Feature Celebrating 125 Years in BusinessHistory of Yamaha’s Social Contribution Activities

Aiming to Enrich the Lives and Minds of People Worldwide andCreate a Better Society Through Our Business Activities
Fixing a broken organ
In 1887, Yamaha started building foundations for domestically produced musical instruments in Japan after repairing a
broken organ that had been imported from abroad.
Yamaha has now enjoyed a long history that stretches back 125 years. During that time, we have always sought to makea strong contribution to society.
Let’s take a look back at some of the key social contribution milestones over the past 125 years.

1887~
1887 Torakusu Yamaha repairs a reed organat Hamamatsu Jinjo Elementary School(currently Motoshiro Elementary School)
and then successfully builds his first reedorgan.
1897 Nippon Gakki Co., Ltd. (currently Yamaha
Corporation) established1900 Production of upright pianos begins

7

CSR Report 20131960s
1902 The first Yamaha grand piano completed
1939 Formulates Guiding Principles for Yamaha
1947 Forms Nippon Gakki Union
1949 Shares listed on Tokyo Stock Exchange
1954 First music class inaugurated
1955 Splits off the motorcycle division andestablishes Yamaha Motor Co., Ltd.
1958 Creates Yamaha Baseball Club1960 Establishes school for technicalacquisition for employees
1961 Creates Yamaha Symphonic Band
1963 Inaugurates association of Yamaha
dealers in Japan
1963 Inaugurates international association of
Yamaha dealers
1968 Shares issued at market price for firsttime in Japan1

Contributing to the Popularization and Development ofMusic and Musical Culture
1950’s1970

Special Feature: Celebrating 125 Years in BusinessYamaha has made a strong contribution to the spreadof music culture in Japan since successfully
manufacturing the organ and the piano domestically.
Such contribution includes the production of a variety
of musical instruments, the active importing of foreign
musical score and music books since before the war,and holding music festivals. Besides pursuing theultimate performance in musical instruments as acomprehensive manufacturer in the field, Yamaha has
also created unique products over the years that
include audio equipment such as speakers, portable
keyboards that are convenient and fun to use, and the
SilentTM Series of instruments that enable a more
comfortable music life in consideration of thesurroundings. Yamaha’s Music Education Business,
beginning with the Yamaha Music School, whichstarted from experimental organ classes in the 1950s,
boasts over 50 years in operation and has grown to all
corners of the globe and to a wide range of age groups.
Currently, Yamaha is rolling out a diverse program
connected mainly with promoting health. Also, byleveraging technology amassed in sound and music,
Yamaha proposes new solutions and services that
include the creation of better musical environments,
privacy protection and voice communication.
Apart from contribution through these businesses,
Yamaha has continued to support a variety of musicalactivities such as efforts to assist musicians andinstructors as well as cooperation with the running ofcompetitions. This has enabled us to continue creating
a more fulfilling society where more and more people
can share in the joy and excitement of music.

▲ Yamaha Music School was
extremely popular when it
first opened and has sincegrown nationwide▲1st Tokyo International Popular Song Festival (World
Popular Song Festival)

1980▲ Portable keyboard “PortaSoundTM”

1997

2007

2008~

▲Silent violinTM▲“TENORI-ONTM,” an electronic
musical instrument that proposes a
new way to enjoy music▲The Yamaha Wellness Program aims to enhance health through music

1970s

1980s

1970 Holds 1st Tokyo International PopularSong Festival
1970 Begins Japan Band Clinic
1974 Begins Yamaha Business School featuring
a distance learning-based program1975 Begins Environment Week and local
cleanup activities

1980 PortaSoundTM portable keyboard
marketed
1981 Begins sales of one-handed recorder1985 Releases marimba using AcoustalonTM
made of rare wood alternative material
1985 Holds 1st Yamaha Cup Ladies Open1987 Centenary year
Company name changed to Yamaha
Corporation
1987 Forms Industrial Safety and HealthCommittee

CSR Report 20138

2

Contributing to a Healthy Global Environment

As initiatives for environmental preservation, over theyears Yamaha has worked to reduce environmental
burden for example by establishing an Environmental
Management Division in 1974, introducing technology
for waste gas and wastewater treatment, reducing waste,
promoting energy conservation and setting voluntarystandards that are stricter than legal obligations.
In terms of products, Yamaha is pursuingenvironmental responsiveness by substituting
substances of concern such as shifting to lead-freesoldering for wind instruments, saving energy andconserving resources. In addition, we are working todevelop alternative materials for rare wood that is used
as a raw material in musical instruments and otherthings as a means to conserve wood resources.
Yamaha is also dedicated to making sure each of
its employees has an awareness of the environment,
participates in regional clean-up activities andconsiders the environment as part of daily life. We arealso striving to preserve forests in Japan and overseas
to fulfil our social responsibility as a company thatutilizes wood.

3

1983~

▲ Pollution prevention patrol based onlabor-management cooperation▲ Employees have participated in the
Hamanako Lake Clean Brigade since 1983

2005~

2006

▲Tree-planting in Indonesia▲Trumpet using lead-free soldering

Contributing to Local Communities as a “Corporate Citizen”

The spirit of contributing socially that was included in
the Company creed established in 1939 signals acommitment to take on community-based activities
as a corporate citizen.
Yamaha contributed to post-war recovery of thelocal area of Hamamatsu City following the end of thewar in 1945 by building and providing simple housing
for no profit. This and other efforts led to social
contribution activities in each region Yamaha has abusiness site in.
The Yamaha Baseball Club, created in 1958,
contributes to sports promotion in local communities
by appearing in inter-city baseball tournaments andthrough baseball clinics for youngsters. The Yamaha
Symphonic Band, established in 1961, cooperates withmusical performances at local events in addition tostaging concerts on a regular basis. Yamaha also
supports the education of children by running factory
tours and providing workplace experience as well as
giving its support of employee’s volunteer efforts inJapan and overseas.

9

1974

1945
1961
▲Simple housing to help
with recovery from war
damage without regard
for profit

1972

1990s

2000~

1992 Holds 1st Yamaha Jazz Festival
1994 Begins acquisition of ISO 9000 seriescertification
1995 Begins Hamamatsu International Wind
Instrument Academy and Festival
1997 Begins acquisition of ISO 14001
certification

2000 Issues first Environmental Report (CSR
Report)2000 Establishes section in charge of IR
2000 Begins business presentations forsecurities analysts and institutional
investors
2003 Inaugurates Yamaha Cares, a US subsidiary

CSR Report 2013

▲Yamaha Symphonic Band

◀Fans support the Yamaha BaseballClub as it wins its first ever intercity baseball tournament

Yamaha Corporation of America implementing employee-based charitable works
2003 Establishes Compliance Committee andformulates Compliance Code of Conduct
2003 Establishes outside director and auditor
system2004 Initiates project to promote the role of52003 to ensure compliance with laws and social
norms, which form the foundation of corporate
management, and the Compliance Code of Conduct
was formulated to foster a better corporate culture.

1939
The Guiding Principles for Yamaha wascreated as rules for employees

Special Feature: Celebrating 125 Years in Business

1961▲ Opening ceremony of school fortechnical acquisition▲

In order to contribute broadly to society through its
business activities, Yamaha aims to be of service to the
local community, an idea championed in the
Company creed formulated in 1939, by encouraging
improvement in each employee and the Company
itself on a daily basis and ensuring that duties are
performed with sincerity.
Yamaha started developing human resources sothat they could generate products of the highest
quality at a training institute within a boarding schoolit established in the 1900s. Following on from that,
Yamaha set up a school for technical acquisition in the
1960s. The Yamaha Business School featuring a
distance learning-based program was established in1974 and is supporting the personal development of
employees. In recent years, Yamaha has been pouring
effort into promoting a good work-life balance andexpanding the role of female workers and in order tocreate a fulfilling workplace environment that caters
for diverse lifestyles where employees can maximize
their sensitivity and creativity.
The Compliance Committee was established in▲4

Building a Corporate Culture that Helps Offer Better
Products and Services

1998

The From-To Program was initiated topass down skills and technologies tothe next generation

Promoting Highly Transparent Management and Mutual
Understanding with Business Partners

In order to become a company that is trusted widely
by society, Yamaha consistently places emphasis on
dialog with shareholders and business partners, which
underpins the foundations of our corporate activities.
Yamaha’s achievement of being the first company inJapan to issue shares at market price as a means toenhance capital and stabilize share price in 1968, a movethat became mainstream after that, can be attributed
to discussions held between management andshareholders and a high level of mutual understanding.
Yamaha established an IR section at the start of the
2000s that is actively conducting IR activities that
include holding business presentations and tours offacilities for investors from Japan and overseas.
Yamaha has worked to enhance governancefunctions by introducing an executive officer system,
as well as by setting up Corporate Committees and aninternal control system. These actions in conjunction
with consistent audits of the Company's daily operations
conducted by Yamaha's full-time auditors as well as
impartial and fair audits by highly independent
outside auditors raise the effective of governance.

women in the workplace2005 Begins tree-planting activities in Indonesia
2006 Completes shift to lead-free solders inall wind instruments
2007 Begins activities supporting forest
regeneration on the Enshunada Coast2007 Achieves zero waste emission at all

In addition, Yamaha aims to drive mutual
development with its working partners, including
suppliers, affiliate factories and sales distributors, and is
working actively on interchange by creating opportunities
for reporting sessions on management and production
and sales trends, and for training workshops.

1963

2008

▲ General meeting for association of Yamaha
dealers in Japan (established in 1963), whichaims to ensure friendly relationships withdealers and drive mutual advancement

production sites in the Yamaha Groupnationwide
2008 Attains "KURUMIN next generation
accreditation mark"2008 Formulates BCP Guidelines
Opens Customer Communication Center2010 Begins presentations for individual investors▲ A tour of one of Yamaha’s facilities
for investors

2010 Formulates Yamaha Corporation GroupCSR Policy
2011 Completes acquisition of ISO 14001
certification in all Group companies inJapan2011 Participates in School Music Revival Fund2011 Signs the United Nations Global Compact

CSR Report 201310

Contributing to the Popularization andDevelopment of Music and Musical Culture
Yamaha continues to implement diverse activities around the world aimed at popularizing music culture.
Meanwhile, technology related to sound and sound space is being put to use in various social scenes.

Efforts to Popularize Music
Supporting Music Clinics and Contests▲

Yamaha continuously supports music clinics and contests forpeople that have their sights set on becoming performers as well
as for instructors.
Yamaha Corporation provides support at events whereparticipants pursue a high artistic standard such as the Hamamatsu
International Wind Instrument Academy and Festival and Japan
Band Clinic in terms of products and from an operational perspective.
Since 2012, Yamaha Music & Electronics (China) Co., Ltd. has
been running the Yamaha National Piano Competition, which is
at one of the highest levels in the country, with the aim of
fostering promising music students for the future.

Support Related to Scholarships and Music
Education Institutions
Yamaha has set up scholarship systems in different regions of theworld as support for people to learn music. In Thailand, we haveprovided scholarships to more than 100 music university students
to date while in Korea we established a scholarship system in2012 and started supporting youngsters aspiring to be musicians.
Yamaha also teams up with music education institutions andcooperates with the educational curriculum and the provision ofseminars for instructors.

11

CSR Report 2013

Yamaha makes effort to spread music culture by holding eventsand contests in different regions worldwide.
In Japan, we proposed the idea of the “Family Ensemble”, an
event where families can enjoy music together. By getting
families, the building blocks of the community, to spend afulfilling time together, the company hopes to have a positive
influence on the region and society.
In China, we plan and run a wind instrument karaoke contest,
which is held in different areas of China and boasts 4,500
participants a year, as well as contests that provides a space foramateur musicians to perform.

43rd Japan Band Clinic▲Yamaha National Piano Competition (China)▲ Granting scholarships in fiscal
2012 (Korea)

Spreading Music Through Events and Contests▲ Providing scholarships to music
university students (Thailand)▲ A “Family Ensemble” that started from the November
22 “Good Couple Day”

Supporting the spread of music regionally
Yamaha holds a “Brass Jamboree” for brass band enthusiasts inJapan. Many people from all over Japan, including those withexperience in wind instruments and those who have just started
playing a musical instrument in addition to the brass band
enthusiasts, spend a day to enjoy brass instruments together.
The event includes a grand performance that everyone
participates in.

▲ Brass Jamboree 2013 in Yokohama (February 2013)

Contributing to the Popularization andDevelopment of Music and Musical Culture

Support for Music Education
Propping Up School Music Education
Yamaha contributes to the enrichment of music course content
by supporting music education at schools in various regions of
the world.
Yamaha started the website “Music pal” to provide a variety
of information of benefit to music coursework and self-directed
learning. Siam Music Yamaha Co., Ltd. provides recorders and an
educational curriculum free of charge as part of efforts to create
music education foundations in Thailand. It also conducts courses
for teachers. Around 3,000 teachers participated between fiscal
2002 and fiscal 2012.
Yamaha also donates musical instruments in different
regions. Yamaha Music & Electronics (China) Co., Ltd. donated an
upright piano and portable keyboard to two schools for thechildren of migrant farmers in the northern part of Shanghai
through a charity foundation in Shanghai in March 2013.

▲ Providing instruction on recorders for teachers to
use in their music course (Thailand)▲ Donating instruments to schools for thechildren of migrant farmers (China)

Proposing Solutions that
Employ Sound Technologies
RemoteLiveTM Technology for People to Enjoy
Concerts and Other Live Performances Remotely
As one way to satisfy the desire to deliver live performance ofhigh artistic quality by outstanding musicians to as many people
as possible, Yamaha developed RemoteLiveTM for thetransmission of video, audio and MIDI simultaneously to multiple
locations through the internet. Through this technology, thekeys of a piano in a remote location move exactly as in theperformance in a live hall so that people can enjoy live piano
performance as if a concert were being conducted before
their eyes.
In October 2012, RemoteLiveTM technology was used for alive performance at a keyboard event called “Banban! Kenban♪
Hamamatsu” (sponsored by Shizuoka University of Art andCulture), which introduces keyboard instruments from aroundthe world in a variety of ways. The central hall on the Shizuoka
University of Art and Culture campus, the main event space, wasconnected to Yamaha Corporation’s Kakegawa Factory via
internet and a live performance by a pianist at the factory wassynchronized in real time at the event space.

shizuoka▲ Performance at the
Kakegawa Factory

Hamamatsu

Kakegawa▶The live performance at the
Kakegawa Factory was synchronizedin front of the audience at the main
event space

CSR Report 201312

Contributing to a Healthy Global Environment
Guided by the Yamaha Group Environmental Policy, Yamaha Corporation promotes environmental
management in league with Yamaha Group companies. Individual employees are in turn committed toactivities that protect and contribute to a healthy global environment.

Environmental Management
Operating an Environmental Management System
The Yamaha Group adopted the environmental management
system ISO 14001 in fiscal 1997 at its business locations.
Integration of the certification was completed in August 2011 fordomestic Group companies with the aim of ensuring efficientenvironmental management throughout the Yamaha Group.
Yamaha introduced the Yamaha Group Environmental
Management System in fiscal 2013, which is applicable to all
Yamaha Group companies worldwide.

Response to Soil Contamination at Saitama Factory
Yamaha conducted a soil survey at the site of Yamaha
Corporation’s former Saitama Factory (Fujimino City,
Saitama Pref.) after that facility was taken out of service.
The results showed contamination in part of the soil
as well as in the groundwater on the premises, which
was caused by heavy metals. Follow-up surveys by
the Company and Saitama Prefecture showed thatthe impact did not extend beyond the bounds of thepremises, however. Going forward, Yamaha will continue
taking steps to decontaminate the soil.
Yamaha will continue reporting the situation to therelevant authorities, providing explanations to residents
in the area and putting out news releases in order toensure appropriate disclosure.

Promoting the Design of Environmentally Friendly
Products Utilizing the LCA Method
Yamaha works to identify the characteristics of the environmental
impact of each product group and implement eco-friendly
design that counters each issue uncovered. As ways to achievethis, steps such as product life cycle assessments (LCA) are takenthat evaluate environmental impact throughout the product life
cycle, including material procurement, production, transport, use
and disposal.

Supporting Eco Activities Undertaken by
Employees
In order to support the eco-activities that employees perform aspart of their daily life, Yamaha promotes Smart Life in My Home
Commitment, which outlines environmental enlightenment
activities in the home in conjunction with the YAMAHA UNION.
Under this commitment, employees establish and implement
eco-activity themes according to their individual circumstances.
Yamaha received a total of 855 reports and 633 reports on theactivities at the end of the program in fiscal 2011 and fiscal 2012,
respectively, and gave awards to the most exceptional initiatives.

▲ Award for exceptional initiative
under the Smart Life in My Home
Commitment▲ Green Curtain created at the homeof an employee wins outstanding
award

Environmental Considerationin Production Activities
Environmental Response at Factories in China
Yamaha factories in China are undertaking various environmental
measures that include acquisition of ISO 14001 certification and
Cleaner Production Audit certification pursuant to Chinese law.
Hangzhou Yamaha Musical Instruments Co., Ltd.
implemented energy conservation measures such as improving
and strengthening maintenance for dust collectors and otherproduction equipment, and reducing waste, which led toacquisition of Cleaner Production Audit certification at the end of
2011. Yamaha Electronics (Suzhou) Co., Ltd. acquired the same
certification in 2012 and continued to make improvements, which
resulted in reductions in power consumption of 1,520,000kWh,water consumption of 2,500t, wastewater of 2,000t andhazardous waste of 1.2t. In addition, Xiaoshan Yamaha Musical13

CSR Report 2013

Instrument Co., Ltd. acquired the certification in March 2013 after
efforts to recover silver from waste liquid that comes from plating
and to recycle water at the plating factory. Tianjin Yamaha
Electronic Musical Instruments, Inc. is reducing waste byimproving its processing method for plastic and minimizing
environmental burden in waterways by newly installing
wastewater treatment equipment.

▲ Dust collection
equipment (Hangzhou
Yamaha MusicalInstruments Co., Ltd.)▲ Cleaner Production
Audit certification(Yamaha Electronics▲ Wastewater treatment equipment(Suzhou) Co., Ltd.)(Tianjin Yamaha Electronic MusicalInstruments, Inc.)In line with the integration of wind instrument production
processes by transferring the operations of the Saitama Factoryto Yamaha Corporation’s Toyooka Factory, various efforts weremade to conserve energy, which led to a 7% reduction in power
consumption. Yamaha Music Craft Corporation’s Shinden Factory,
which produces string instruments, put into place various
programs to save energy in fiscal 2011 such as using more
appropriate pressure in its compressors and other measures,
which enabled it to reduce its carbon dioxide emission reduction
target by a further 11% relative to the target. In fiscal 2012, it
managed its air conditioning units more appropriately andachieved its target here also.
Similar initiatives are also being executed in factories
overseas. Hangzhou Yamaha Musical Instruments Co., Ltd., where

production volume has been increasing, worked to conserve
energy in fiscal 2012 by formulating and complying withstandards for appropriate operation of dust collectors, which
account for 25% of power consumption. This resulted in an 8%
reduction in energy consumption per unit of sales.

Contributing to a Healthy Global Environment

Measures Against Global Warming at
Factories Worldwide

Reduced Resources and CO2 Emissions in Piano
Frame Transportation
Previously, Yamaha used disposable iron packing racks whentransporting piano frames from Japan to China. To eliminate thiswaste, we created returnable packing racks that can be used
multiple times and a system for managing them, and in October
2011, we switched to returnable packing racks for all piano framesbound for China. We also completed the switch to using thesepacks for all piano frames bound for Indonesia in May 2013.

Protecting Forests andMaintaining Biodiversity
Yamaha Forest Phase II in Indonesia
Phase II of the Yamaha Forest tree-planting activities has been
implemented since fiscal 2010 to conserve biodiversity based ona five-year plan in a devastated area of Mt. Ciremai National Parkin Kuningan Province, West Java. A tree-planting event was held
in November 2012, which attracted around 210 participants. The
event also included the planting of a commemorative tree andenvironmental education for children.
Yamaha Forest activities are now in their ninth year since
Phase I was initiated and a forest is gradually starting to form in
the area where the trees were first planted.

Experienced planting trees in
the area I grew up
I grew up in Kuningan and I sometimes
went camping to Mt. Ciremai when I wasa junior high school student. This was myfirst experience planting trees and I wasreally pleased that I was able to do so in thearea I grew up in. I hope these activities arecontinued into the future.

VOICE▲ Participants in tree-planting
activities▲Yamaha Forest created in Phase I

Support for Regeneration of the Enshunada
Coastal Forest
Yamaha Corporation has been supporting the regeneration of the
Enshunada Coastal Forest as a “Shizuoka Forests of the Future
Supporter” since fiscal 2007. In October 2012, around 150 people
including Yamaha employees, family members and generalparticipants took part in planting five species and a total of 200 treesthat included bayberry, round leaf holly and Japanese cheesewood.

Elah Solihah
P.T. Yamaha Music Manufacturing
Indonesia▲Tree-planting in action

CSR Report 201314

Creating a Better Society
As a good corporate citizen, Yamaha engages in business activities that contribute to the development ofregional societies.
Yamaha contributes to the creation of a better society by supporting the education of children, the leadersof the next generation.

Contributing toLocal Communities
Regional Contribution Through the Yamaha Ladies
Open Katsuragi Golf Tournament

Hamamatsu Jazz Week
Each year, Yamaha Corporation holds “Hamamatsu Jazz Week” incooperation with the city of Hamamatsu and other co-organizers.
The event has a variety of programs that can be enjoyed bypeople of all ages. The 21st Hamamatsu Jazz Week in 2012
included concerts that featured global artists as well as those by
outstanding big bands from elementary, junior and senior highschools throughout Japan, combined with public music lessons,citizens' group events, the region's jazz club, a concert for parents
with children, and “Jazz Koza” that fuses rakugo comic storytellingwith jazz. Through these and other means, Yamaha actively
supports the spread of music and culture in communities, as in
the city of Hamamatsu.

Each year, Yamaha Corporation and Yamaha Motor Co., Ltd. jointly
host the Yamaha Ladies Open Katsuragi golf tournament at the
Katsuragi Golf Club operated by Yamaha Resort Corporation. This
major event is made possible with the support of volunteer staff
that record and carry out the tournament as well as prepare thegallery, and also the support of local residents and regional
governments.
Since the first tournament in 2008, Yamaha has given
donations to local governments that have backed thetournament as a token of our appreciation to local residents fortheir cooperation and support of the event. A total of ¥29 million
has been donated, which is being used to revitalize sports andculture in the region and in the area of social welfare.

▲ Volunteer staff at the 2013 tournament▲Yamaha Jazz Festival in Hamamatsu 2012

Cooperation with Regional Interchange
Yamaha cooperated with events to celebrate the 30th anniversaryof friendly ties between China’s Zhejiang Province and Japan’s
Shizuoka Prefecture. Having business sites in both regions ofJapan and China provided the perfect opportunity to support
regional interchange. Visiting groups from Zhejiang Province were
given a tour of the production process for grand pianos in Kakegawa
while the mayor of Shizuoka Prefecture got to observe Xiaoshan
Yamaha Musical Instrument Co., Ltd. Yamaha also lent its
cooperation to a commemorative event, held in Zhejiang Province,in which Shizuoka Prefecture donate a grand piano to the province.

Regional Contribution Activities by the Yamaha
Symphonic BandThe Yamaha Symphonic Band holds regular musicalperformances and pop concerts, on top of supporting the
Yamaha Baseball Club at inter-city baseball tournaments. In
addition, the Band performs at various other events in Japan andoverseas, and appears in contests. It also does concerts as a formof social contribution. In fiscal 2012, the Band visited a special
nursing home to perform and also played at an anniversary eventat a local elementary school. In December, it conducted
fundraising at a pop concert with the proceeds going to help
recovery following the Great East Japan Earthquake.

▲

The ceremony to donate
the commemorative gift
marking 30 years of friendly
relations▲ Ceremony to hand over themoney that has been donated15

CSR Report 2013

▲ Performance at a special
nursing home

▲ Playing at an anniversary event at
a local elementary school

Social Welfare Initiatives
Creating a Better Society▼

Providing “TENORIONTM” to alleviate stressbefore an operation(Yamaha Music EuropeGmbH Branch France)

Social Welfare Actions in Regions Worldwide
Yamaha conducts social welfare related activities such assupporting the medical field as well as sickness and injury careand child welfare. Employees in different regions also undertakevoluntary charity-based activities in an aim to contribute to the
local communities that they live and work in.
As support for the Great East Japan Earthquake, we are
fundraising for the School Music Revival Fund and cooperatingwith recovery-related events in Japan.

▲ Visiting an orphanage (YamahaMusic (Malaysia) Sdn. Bhd)

▲ Donating Food and Toy Drive(Yamaha Canada Music Ltd.)

Supporting Development of
the Next Generation
Providing a Variety of Learning Opportunities

Support for Learning Facilities and School Supplies

Yamaha accepts people for workplace experience, internships
and factory tours at its sites worldwide following requests fromeducational institutions in different regions.
Yamaha Corporation provides a program for children
focused on the topics of “production” and “science” to meet
requests from different regions. Group companies around theworld also provide opportunities for music education. As one
example, Yamaha Music Latin America set up the Cauca Wind
Orchestra in Colombia and is aiming to ensure the sounddevelopment of juveniles in the area.

Yamaha conducts donation activities that make the most of
business characteristics in each region to provide assistance tolearning facilities and educational institutions.
In fiscal 2012, Yamaha Corporation donated variable
acoustic room and cutaway models of musical instruments as
exhibitions for the Hamamatsu Science Museum. Hangzhou
Yamaha Musical Instruments Co., Ltd. provides wood off-cuts
generated from the production process for piano components
and guitars to a Japanese school nearby where they are being
used as building blocks.

▼

A workshop for making
a folk instrument fromAfrica called kalimba▼ Workplace experience at asales store▲ Providing wood off-cuts for building blocks▼

Cauca Wind Orchestra

CSR Report 201316

Building a Corporate Culture that Helps
Offer Better Products and Services
Yamaha continues to provide value-added products and services with exceptional value to customers.
To achieve this, we work to grow the company and enrich the lives of each employee.

Pursuing Customer Satisfaction
Sharing and Utilizing Customer Opinion
Yamaha works to ensure effective practice of Customer
Relationship Management (CRM) in order to reflect customer
opinion in products and services with the aim of enhancing
customer satisfaction.
In Japan, opinions from customers, number of requests andresults of analysis are collected by the customer support
department are discussed at monthly meetings by the productdevelopment division and quality assurance division. In fiscal
2010, Yamaha established a framework to increase Voice ofCustomer (VOC) visibility where opinions and requests from
customers are shared internally in real time. It has been operating
since fiscal 2011 and promoting the use of VOC in sales activities
and product development has led to faster reflection ofcustomer opinion in operations. Yamaha won an award in thetechnology category of the Center of Excellence Awards 2012
sponsored by Ric Telecom’s Computer Telephony editing
department for its framework to increase visibility of VOC.

Aiming to be a concierge for customers

VOICE

Using VOC is one part of CRM
that builds relationships withcustomers. Through VOC, we areaiming to utilize CRM in all services,akin to a “concierge.” In addition
to resolving problems, I believe it
is important in helping to create
an environment to use Yamaha
products based on an overall
image of customers’ lifestyles.

Mitsutoyo Kato
Customer Support Department
Yamaha Music Japan Co., Ltd.

Appropriate Disclosure of
Product Information
Providing Appropriate Information on Products
and Services
In order to ensure proper advertising and publicity
communicating the contents of Yamaha’s products and services
to customers as well as represent accurate information about
them in accordance with applicable laws and regulations,
Yamaha has formulated and is applying internal rules on basic
disclosure and prohibition of misleading representations.
In order to have customers use products safely, Yamaha
provides safety-related information and works to raise awarenessthrough instruction manuals and catalogs as well as a dedicatedsection on the company website.
In order to respond to interest shown by customers inenvironmental preservation, we disclose cases related toenvironmental consideration on the CSR website, including
efforts to reduce products' energy consumption.

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CSR Report 2013

Information Disclosure regarding Product Safety
and Defects
In the event that an accident is caused due to the products,
services and facilities provided to customers by the YamahaGroup, we conduct a product recall when necessary for customer
safety and disclose the necessary information in an appropriatemanner, which includes notifying the relevant authorities in linewith laws and regulations. Yamaha is also proactive about making
announcements through various media in addition to its website.

Recall of Golf ClubIn February 2013, Yamaha began recalling the golf club
driver inpresX RMX. Non-standard screws are mixed inwith the weight screws attached to the head part, whichmakes it possible for the head itself to fall off. We notified
people through our website and reported the incident in
the newspaper and an industry magazine. As of June 2013,
we had recalled all store inventories and provided
inspections free of charge or replaced the part for 90% of
the products sold.

Conducting Fair Hiring and Providing Employment
Opportunities to Diverse Human Resources
Yamaha respects human rights in hiring and employment andworks to maintain fair hiring practices and provide employment
opportunities to a diverse range of people.
At Yamaha Corporation, the employment rate of people
with disabilities has hovered around 2% since fiscal 2009, which
exceeds legal standards. In addition, 223 senior partners (as ofMarch 2013) were employed under the employment extension

Building a Corporate Culture that Helps
Offer Better Products and Services

Expanding the Role of Diverse
Human Resources
program (Senior Partner System). In line with the revised law,
Yamaha is taking steps to provide work for all regular employees
nearing retirement age in fiscal 2013 who want to keep working.
Besides these initiatives, Yamaha also actively employs
people of foreign nationality, and 64 non-Japanese were
employed at Yamaha Corporation as of March 1, 2013. In order toexpand the role of diverse human resources irrespective of
nationality, we have set targets for the hiring of newly graduatednon-Japanese and provide information about hiring in English on
our website.

Promoting a Better
Work-Life Balance
Shortening Total Work Hours and Creating a
Flexible Work Hours System

Ministry of Health, Labour and Welfare for its support in thedevelopment of the next generation.
The Company also holds internal seminars and provides
information on the intranet with the aim of boosting awarenessof work-life balance.

The Yamaha Group has continued to actively cooperate withlabor in its efforts to promote a better work-life balance. In thismanner, the Group strives to realize corporate growth in concert
with a fuller life for all employees. Various initiatives aim toshorten total work hours such as encouraging employees to takepaid holidays and taking proactive steps to provide support for
both work and family by establishing and improving childcare
and nursing care support systems. Yamaha Corporation
formulated and implemented an action plan in fiscal 2005 thatincorporates such initiatives as an upgraded and expanded▲“Kurumin” mark certification
childcare support system and in 2008 was recognized by therecognizing support forthe development of thenext generation.

▲ My Yamaha Life on the intranet

Employee Safety and Health
Safety and Health Auditing at Overseas
Production Sites

Giving advice on
wearing the appropriate
protective equipment(Indonesia)▲

Yamaha is working on health and safety management activities
at production sites overseas as part of efforts to prevent industrial
accidents. In fiscal 2012, Yamaha Corporation conducted safety
and health audits at six sites in Indonesia, China and Malaysia toconfirm safety and health management systems and theestablishment of related regulations and standards, and to provide
guidance on reducing risk associated with industrial accidents. An
occupational physician from Japan accompanied the officials tosome of the sites to provide guidance on the appropriate use ofprotective equipment from a specialist standpoint.

CSR Report 201318

Promoting Highly Transparent Management and Mutual
Understanding with Business Partners
Yamaha consistently strives for the highest transparency in its management by promoting outstanding
compliance management, ensuring the timely disclosure of all relevant information and fully engaging infair transactions.

Promoting Compliance Activities
Promoting Compliance in Accord with Regional
Characteristics and Changes in Society
Yamaha formulated the Compliance Code of Conduct in 2003
and since then has revised it in accord with changes in thebusiness environment and social circumstances, and also made it
in foreign languages.
Additions were made to the Compliance Code of Conduct infiscal 2006, including an article regarding the prohibition of▲ Local versions of the Compliance Code of Conduct

forced and child labor, and other information essential for Group
companies with overseas business interests. Taking into
consideration revisions to various laws and regulations in fiveyear blocks since 2006 as well as changes in social conditions, theYamaha Group revised the Japanese version of its Compliance
Code of Conduct in April 2011. Detailed explanations were added
covering such items as revisions to consumer, antitrust and labor
legislation, changes to expectations in companies held by society
and the general increase, society-wide, in whistle-blowing.
The Yamaha Group has formulated respective codes ofconduct for 28 overseas companies that take into consideration
local laws and regulations and are based on the Japanese version
in order to promote compliance based on a consistentphilosophy and rules across the board worldwide. A code iscurrently being prepared for two newly established companies.
Since fiscal 2012, the Yamaha Group has been revising local
versions of the Compliance Code of Conduct to reflect changes
in each region and in consideration of revisions made to theJapanese version. The revisions reflect local governing laws andregulations as well as the social environment, and are made withthe assistance of local outside experts who confirm content.

Mutual Understanding with
Business Partners
Providing Explanations of CSR for Business Partners
Yamaha Corporation implements CSR-related measures in the
supply chain to ensure procurement in line with various policies
such as the Yamaha Material and Component Procurement
Policy. Yamaha’s policies on procurement and CSR are explained
to business partners, who are requested to comply in such areas
as respect for human rights, labor, health and safety, and fairtrade. If a business partner violates the provisions of the
procurement policy, it is required to make swift improvements
and report on the actions it has taken. In certain cases, Yamaha
may take steps to reduce or cease transactions with a partner.
When concluding contracts with new suppliers, Yamaha
conducts surveys of the CSR measures implemented by business
partners. Drawing on the results of surveys, Yamaha requests*
that suppliers implement improvement measures when it has
been determined that such measures are required. In caseimprovement measures are requested, Yamaha meets directly

19

CSR Report 2013

with suppliers to explain and gain an understanding of its
policies. These meetings also serve as an opportunity to provide
feedback on survey score results. In fiscal 2011, the Company only
concluded new contracts with suppliers who were not required
to implement improvements. In fiscal 2012, the Company
renewed contracts with supplier upon a review of the content of
the basic transaction agreement in line with an ordinance related
to the expulsion of organized crime groups.
* In the case of trading companies, components or material
manufacturers are also requested as well.

Proactive Investor Relations Efforts to Promote
Understanding of the Company
Yamaha Corporation adheres to our Disclosure Policy that
ensures fair and timely disclosure of information to institutional
and individual investors around the world.
In addition to holding quarterly results conferences for
institutional investors in Japan, the Company conducts briefings
on its management policies and individual business segments aswell as factory and facility tours as required. For institutional
investors in other countries, the Company makes available English
translations of all information provided to investors in Japan. In
addition, the Company’s president and directors visit investors
overseas several times a year to foster mutual understanding
through direct communication that encompasses explanations

Promoting Highly Transparent Management andMutual Understanding with Business Partners

Fair and Timely
Information Disclosureof the Company’s management plans as well as the status of its
businesses. Based on the idea of expanding our shareholder base,
Yamaha Corporation gradually commenced briefings forindividual investors in different cities in Japan from fiscal 2010.
Briefing sessions have been held in Nagoya, Fukuoka, Hiroshima,
Sapporo and other cities to date. The Company also runs a
special benefit plan every year designed to ensure satisfaction in
all individual shareholders.

Major IR Activities in the Fiscal Year Ended March 31, 2012
Regularly Scheduled Events

Quarterly result conferences eachquarter (four annually)

One-on-one meetings

250 times

Visits to overseas investors

Three times annually (U.S. (East
Coast and West Coast), U.K., Asia)▲Shareholder special benefit items (for shareholders with morethan 1,000 shares)

Evaluation by Society
Inclusion in Socially Responsible Investment Indexes
Socially Responsible Investment (SRI) indexes* and funds in Japanand other countries evaluate potential investments not only froma financial perspective, but from CSR environmental viewpoints
as well. Yamaha Corporation continues to be listed in some of theworld's most prominent SRI indexes, including the FTSE4Good
Global Index (managed by Britain's FTSE), and the Morningstar
Social Responsibility Index (MS-SRI).

Credit Ratings (As of March 31, 2013)
Rating and Investment Information, Inc. (R&I)

A

Japan Credit Rating Agency, Ltd. (JCR)

A+*SRI (Socially Responsible Investment) Index: An index that monitors
movements in the share prices of companies grouped together selected
for their outstanding financial and CSR qualities.

CSR Report 201320

Third-Party Opinion
Yamaha is focused on ensuring better communication with all stakeholders in orderto respond to various CSR-related issues in Japan and overseas. This year, Makiko
Akabane shares her opinion on Yamaha’s CSR activities and the Yamaha CSR Report2013 in order to make improvements going forward.

Makiko Akabane
Director, JapanCSR Asia Tokyo OfficeThis CSR Report provides ample evidence of Yamaha’s
awareness as a global manufacturer engaged in sound andmusic that has been in business for 125 years. Yamaha’s CSR
activities are being conducted broadly and with sincerity to alevel that is almost incomparable with other producers ofmusical instruments around the world. It is clear that Yamaha
takes a positive stance to driving advanced CSR initiatives in
the market for sound and music as a global enterprise. This
also includes reporting on negative information without
trying to conceal anything in such areas as the environment,
products and workplace safety.
Yamaha aims to accelerate growth in China and emerging
markets under the new medium-term management plan thatstarted in April 2013, demonstrating a particular attention to
global business development. The CSR Report is a good tool
to convey the effects of CSR activities being undertaken in an
earnest and careful manner throughout the Group, but there
is one thing I would like Yamaha to make a more conscious
effort with based on the Company’s high aspirations of having
its CSR recognized on the global stage. The methodology I am
referring to is stakeholder engagement, or the relationship
Yamaha has with its stakeholders.

21

CSR Report 2013

Yamaha has a large number of stakeholders, and as such,it is important to identify those stakeholders that areimportant to the Company and increase efforts to engage
with them more fully. In particular, if Yamaha endeavors to
expand business in overseas markets, stakeholder
engagement at the local level will become vital to understandwhat stakeholders in that region perceive the social problems
to be and what they would like Yamaha to do in response tothese problems.
The global trend in CSR requires companies to focus on
initiatives to resolve key issues uncovered from stakeholder
demands rather than take a wide, shallow approach to issues
that are related to that company’s operations. The Yamaha CSR
Report does not clearly state the process of identifying whichstakeholders are important to the Company or the relationshipto those stakeholders that are deemed to be important.
Consequently, I recommend incorporating stakeholder
engagement going forward and reporting on the process ofidentifying key stakeholders. Since stakeholders differ
depending on region and time period, it is necessary to stay
involved with them in a strategic and ongoing manner rather
than take a one-off, one-directional stance.
Overseas readers might point out that this report has lessinformation on effects and impacts from Yamaha’s CSR
activities. For example, the report includes detailed
information on the frameworks created in relation to
governance, quality assurance, human resource development
and social contribution as well as the programs being
implemented that are based on these frameworks. However,
the report doesn’t clearly mention the effects and impacts
that Yamaha’s activities have brought to society. The existenceof frameworks and programs is indeed critical, but readers
around the world also expect to hear what kind of effects or
impacts these frameworks and programs had. Although it
probably isn’t that simple to measure the effects and impacts
of CSR initiatives in practical terms, I would like Yamaha tomake a conscious effort in this regard going forward.

Response to Third-Party Opinion* KANDO is a Japanese word that signifies an inspired state of mind.

Third-Party Opinion

This year we received feedback from Makiko Akabane, Director, Japan CSR Asia Tokyo Office, a thinktank with the largest network in Asia specializing in CSR and sustainability, on our CSR initiatives andCSR Report. We are indeed grateful to Ms. Akabane for her opinion.
Ms. Akabane gave us high marks for our stance toward CSR activities while also pointing out theimportance of stakeholder engagement in promoting global business development andrecommending that we place more emphasis on this area. As directed, it is vital that Yamaha
accurately identifies expectations and needs through dialog with stakeholders in each region andreflects these in unique CSR initiatives. The “TOGETHER” part of our corporate objective “CREATINGKANDO* TOGETHER” refers to connections with stakeholders, and we believe that our corporate
objective will carry increasing significance in our business activities going forward.
Together with the aforementioned, it was also pointed out that Yamaha does not provide
sufficient information on the effects and impacts of our CSR activities. Although it is difficult tomeasure effects and impacts, as alluded to by Ms. Akabane, we will work to quantify each item anddisclose the relevant information to the extent possible going forward.

Masahito Hosoi
Senior Executive Officer in chargeof the Corporate AdministrationGroup
Yamaha Corporation

Overview of the Company’s Website
Providing detailed information on a broad spectrum of topics

http://www.yamaha.com/about_yamaha/csr/
The Yamaha Group has set up a website dedicated to deepening theunderstanding of stakeholders with respect to the Group’s CSR management
and endeavors.
In addition to the themes covered by this CSR Report, the website
provides detailed information on a broad spectrum of topics. For example,
the website offers a variety of detailed environmental performance data
together with the latest CSR topics updated on a periodic basis. The YamahaGroup is committed to addressing the diverse interests of stakeholders.
Major Disclosure and Information Items
Management Emphasis on CSR

For the People We Work withEnvironmental Initiatives• Message from the President• Yamaha Corporation GroupCSR Policy• Corporate Governance• CSR Management• Risk Management• Compliance• Basic Policy on Hiring and
Employment• Job-Tailored Training and
Education• Initiatives for a Better Work-Life
Balance• Assisting Women’s Careers• Measures to Prevent
Harassment• Health and Safety• Mutual Understanding with
Business Partners• CSR Procurement Activities• Promoting Environmental
Management• Material Balance• Goals and Achievements• Environmental Accounting• Environmental Risk
Management• Environmental Education andTraining• Environmentally Friendly
Products• Initiatives in Energy-Conserving
Products• Initiatives in ResourceConserving Products• Conservation and Effective Useof Wood Resources• Reducing Substances with
Significant Environmental Loads• Products that Support theEnvironment• Green Procurement Activities• Measures to Address Global
Warming• Waste Reduction and Resource
Recycling• Management of ChemicalWith Our Customers• Quality Assurance• Ensuring Product Safety• Product Information Disclosure• Improving Customer
Satisfaction• Reflecting Customer Concerns
in Customer Response andSupport• Personal Information Protection
With Our Shareholders• Policies for Retained Earnings
and Returns to Shareholders• Proactive Investor Relations
Efforts to Promote
Understanding of the Company• Inclusion in Socially Responsible
Investment IndexesWith Society• Activities Grounded in Soundand Music• Proposing Solutions That UtilizeSound Technologies• Contributions to Local
Communities• Local Involvement throughSports• Support that Helps Foster the
Next Generation• Social Welfare Initiatives• Disaster Relief Activities

Substances and Reduction of
Emissions• Effective Use and Conservationof Water Resources• Initiatives at Offices• Forests/biodiversity
Preservation Initiatives• Regional Activities
Environmental Performance Data

• Environmental Accounting• Environmental Data
• Environmental Data by Site
• ISO 14001-Certified Sites• History of Environmental
Initiatives
Policies and Guidelines• Yamaha Corporation GroupCSR Policy• Yamaha Group Environmental
Policy• Yamaha Material and Component
Procurement Policy• Yamaha Timber Procurement
and Usage Guidelines• Green Procurement Standards• Yamaha Compliance Code of
Conduct

CSR Report 201322

General Administration Section, Human Resources &General Administration Division
http://www.yamaha.com/

This Report uses a waterless printing method. Printing is undertaken utilizing vegetable oil inks free of volatileorganic compounds on FSC-certified paper.

2013.9