Corporate Communications Department Management Strategy Headquarters 1-3-1 Shimoteno, Himeji, Hyogo 670-8567, Japan Phone: +81-79-294-6317 Fax: +81-79-299-6292 corporate.glory-global.com
GLORY CSR Report 2018 Glory at a Glance Editorial Policy Table of Contents
Corporate name : GLORY LTD. Stock listings : Tokyo Stock Exchange (1st Section) The Glory CSR Report 2018 aims to inform a wide range of Message from the President 3 Founded : March 1918 Number of employees : 3,314 (Group: 9,516) stakeholders about the CSR initiatives that GLORY LTD. and Glory Group companies conducted during fiscal year 2017. Incorporated : November 1944 Note: As of March 31, 2018 Development, manufacturing, sales, and Capital : ¥12,892,947,600 Line of business : maintenance of cash handling machines, data This report contains information in line with the Standard processing equipment, peripheral devices with data Disclosures of the Sustainability Reporting Guidelines, Version processing equipment, vending machines, 4 set out by the Global Reporting Initiative (GRI). Glory has also automatic service equipment, etc. completed identifying material issues in line with the relevant processes as defined by the GRI. Business Segments
The Special Report section showcases Glory’s coin-operated Corporate Philosophy and Main Customers Main Products and Goods lockers, which were developed to meet new societal needs. The Management Creed, Glory CSR Report 2018 also covers major e orts in fiscal year Glory’s Material Issues in CSR 5 Financial Market Open teller systems Cash monitoring cabinets 2017 related to environmental protection, social action, and afe and Secure Society Coin and banknote recyclers Security storage systems S corporate governance. Further details can be found on the Financial institutions, OEM clients, for tellers Key management systems and others in Japan Coin recycling modules for ATMs Banknote recycling modules Glory website.
Multifunctional banknote changers for horse race ticket Philosophy Corporate Corporate Booklet content Philosophy Vision vending machines Management Creed Corporate Action Medium-Term Guidelines Management Plan
Employee Action Guidelines Employee Standards of Behavior Annual Management Plan Retail and Transportation Supermarkets, department stores, (Glory Spirit) Market Coin and banknote recyclers Ticket vending machines cash-in-transit companies, railroad for cashiers Cigarette vending machines Mindset Action companies, tobacco companies, Sales proceeds deposit machines Medical payment kiosks Multifunctional banknote changers hospitals, local governments, RFID self-checkout systems Major CSR Initiatives general companies, and others Cash recyclers for gas stations for cafeterias in Japan Coin-operated lockers Ballot sorters for handwritten ballots in the Value Chain 7
Amusement Market Card systems for pachinko parlors Pachinko ball counters Covers noteworthy initiatives Banknote conveyor systems for individual pachinko machines conducted in fiscal year 2017. Amusement halls (pachinko parlors) Membership management systems and others in Japan Pachinko prize dispensing machines for pachinko parlors Pachinko ball/token counters Web content Level of importanceLevel of stakeholders to
Overseas Market Level of importance to Glory Banknote recyclers for tellers Coin and banknote recyclers Financial institutions, Banknote sorters for cashiers Special Report cash-in-transit companies, Banknote and check Sales proceeds deposit machines Changing with the Needs of the Times retail stores, casinos, OEM clients, deposit modules for ATMs Coin wrappers Glory’s Coin-Operated Lockers 9 and others overseas Banknote counters Regular e orts not covered in the booklet are posted on our website, along with news and Others Other than those above Other than those above other detailed information.
■ Report Subjects This report generally describes the e orts of GLORY LTD. It will be explicitly stated if a particular item being reported concerns a specific Glory Group company or another company. Moreover, the report on environmental activities covers the ISO Financial Data (Consolidated) 14001-certified o ces of GLORY LTD. and Glory Group Governance 11 companies. Net Sales Operating Income Sales by Business Segment Quality Initiatives 13 (Billions of yen) (Billions of yen) Reporting Period 250 25 Others Financial Market ■ 226.9 227.3 2.8 billion yen 53.9 billion yen Fiscal year 2017 (April 1, 2017 to March 31, 2018) 218.6 222.3 222.5 (1.3%) (23.7%) Human Resource Initiatives 15 20.5 20.3 (May include reporting of items occurring in or after April 2018.) 200 20 19.6 18.6 16.7 FY2017 Social Initiatives 17 100 15 consolidated ■ Publication Date sales Retail and July 2018 227.3 Transportation 100 10 Markets 19 billion yen 43.2 billion yen Environmental Initiatives (19.0%) ■ Referenced Guidelines Overseas 50 5 Sustainability Reporting Guidelines, Version 4, Global Reporting Market Amusement Stakeholder Dialogue 21 106.7 billion yen Market Initiative (GRI) (47.0%) 20.5 billion yen 0 0 (9.0%) 2012 Environmental Reporting Guidelines, Ministry of the 2013 2014 2015 2016 2017 (FY) 2013 2014 2015 2016 2017 (FY) Note: Figures in parentheses indicate the percentage of sales. Environment, Japan Third-Party Opinion 22
1 GLORY CSR Report 2018 GLORY CSR Report 2018 2 Message from the President
Hirokazu Onoe President, GLORY LTD.
• Various methods of payments: Extend solution portfolio to philosophy. In order to share and permeate that philosophy, As Glory enters its next 100 years, processing and settlement of electronic payments and we translated into eight languages and distributed to every digital currencies group employee the Guidelines of Glory handbook, which sets we will contribute to the creation • Currency circulation management: Extend capabilities to forth principles such as our corporate philosophy, track and manage cash through its complete life cycle management creed, and corporate action guidelines. • Automated society: Contribute to productivity in Furthermore, in 2014, we signed up to the United Nations of a safe and secure future. multi-industry applications of robotics, which can work in Global Compact because its 10 principles in the four areas of harmony with human employees human rights, labor, the environment, and anti-corruption Glory’s 100th Anniversary extendable time limits. We have established our standing as • Personal identification and authentication: Develop share the same values with our corporate action guidelines. a pioneer of cash handling machines. solutions to detect, authenticate, and protect personal In March 2018, thanks to your support, our company marked identity, enhancing trust and security in society In September 2015, at a United Nations summit, sustainable the 100th anniversary of its foundation. We have come this To arrive at where we are today, we have created various developments goals (SDGs) were adopted and 17 goals were far thanks to the long-term support of our stakeholders, to innovations within business fields related to currency, and we In order to realize these four new business domains, we will set. We have linked those goals to our group’s strengths so whom we o er our deepest gratitude. Our company was have expanded our market, but our roots remain the further advance our current core technologies of that by implementing our business strategies we are also founded in 1918, with seven employees, as a repair factory philosophy that we have maintained since our foundation, of recognition/identification and mechatronics. We will also working to solve social issues. for light-bulb manufacturing devices. Now, the Glory Group “continuously striving to benefit people by creating products work to provide products and solutions that meet customers’ has about 9,500 employees, subsidiaries in more than 20 that have never been seen before.” We have a long and needs by fusing new technologies via the promotion of open We will continue to earn the trust of our stakeholders and nations around the globe, and o ers products and solutions continuous heritage focused on the development of innovation, and through a flexible approach to changes in the strive to be a corporate group contributing to the realization to meet the diverse needs of customers in over 100 countries. innovative solutions that improve society. This is enshrined in market environment. of a sustainable society. our corporate philosophy with the words “a striving spirit and Since our foundation, we have continued to strive to achieve cooperative e orts.” As the first step, in April 2018 we began a three-year June 2018 the technological innovation and superb manufacturing that planning period with the initiation of our 2020 Medium-Term society has sought. Along the century-long path that we have Determining Our Long-Term Vision 2028 Management Plan. This plan sets aside a period of traveled, the cornerstone of our current growth was the preparation for the creation of our long-term vision, and development of the first domestically produced coin counter, In April 2018—with our focus on the next 100 years—we put pushes forward initiatives aimed at creating new value. It and its provision to the Ministry of Finance’s Mint Bureau together the ideal image of Glory 10 years from now and set includes the three basic policies of building foundations for (now the Japan Mint) in 1950. Since then, we have created forth the Long-Term Vision 2028, which states “We enable a realizing sustainable business management, strengthening many products confident world.” Until now, within the business domain of collaboration with various partners to solve social issues, and which were the first cash handling, the Glory Group has worked to create an realizing higher productivity and robust corporate of their kind in environment in which society can use cash with peace of constitution that directly generate outcome. Japan, such as coin mind. Going forward, as well as furthering that goal, we plan wrappers, coin to enter new fields of business. With the spirit we have Toward the Creation of a Sustainable Society sorters, cigarette inherited from our predecessors of taking on a challenge, vending machines, and via the application of advanced technology that exceeds The Glory Group conducts management based on our and coin-operated the boundaries of cash handling, we will work to create new corporate philosophy, and we believe that the actions of each lockers with domains in the four business areas detailed below. and every employee will lead to the realization of that Japan’s first coin counter
3 GLORY CSR Report 2018 グローリーGLORY CSR報告書2018CSR Report 2018 4 Corporate Philosophy and Management Creed Glory’s Material Issues
We will contribute to the development of a more secure society Glory has identified its CSR-related material issues through the following process. Corporate Philosophy through a striving spirit and co-operative e orts. ● Process for Identifying Material Issues STEP 1 Find and Extract CSR Issues In-House Consideration • Through a spirit of continuous development, we will provide products and services our customers can rely on. Based on international standards such as the Global Reporting Initiative (GRI) Representatives of relevant Glory departments sorted out the guidelines and ISO 26000, the social impact in all stages of the value chain (planning, issues and assessed their materiality. Management Creed • We will build a vigorous corporate group through respect for the individual development, procurement, manufacturing, sales, maintenance, others) were and teamwork. assessed, and CSR issues were found and extracted. • We will endeavor to act as responsible corporate citizens and co-exist harmoniously with society at large. STEP 2 Assess the Materiality of CSR Issues from the Standpoint of Both Glory and Its Stakeholders
A questionnaire was administered in both the business and corporate departments to assess materiality. Responders ranked the priority of CSR issues from the two 2020 Medium-Term Management Plan standpoints of ‘materiality in businesses’ and ‘level of impact on stakeholders’. Dialogue with Experts
Basic Policy Two dialogue sessions were held, each one with an outside expert: Junichi Mizuo, President of MIZUO Compliance & STEP 3 Experts Assess Validity Governance Research O ce, and; Seiichiro Shimamoto, a Policy 1 Policy 2 Policy 3 professor at Kyoto Bunkyo University. In these sessions, the two experts provided Glory with advice such as whether Two outside experts assessed the validity of materiality. Based on these assessment Existing Business New Business Management Base there were any shortcomings in the assessed materiality, results, a materiality map was created and issues were sorted out. and how to pursue CSR that matches Glory’s characteristics.
Build foundations for Strengthen collaboration Realize higher productivity and realizing sustainable with various partners to robust corporate constitution business management コンプライアンス経営の強化とグループ会社への展開solve social issues that directly generate outcome STEP 4 Identifying Material Issues Based on the materiality map, 11 items considered material issues at Glory were ● Overseas business ● Promote new business ● Work-style and operational chosen and these were classified into five priority CSR themes. Following approval Junichi Mizuo Seiichiro Shimamoto Further growth of financial domains reform to improve from management, these were identified as material issues. President, Professor, market and acceleration of productivity MIZUO Compliance & Faculty of Social Relations, ● Acquire new core technology Governance Research O ce Kyoto Bunkyo University retail business ● Organizational climate ● Proactive allocation of ● Domestic business management resources for reform to realize open Promote solution proposals new business innovation ● Material Issues Identified at Glory
Category Priority CSR Themes Material Issues Fiscal Year 2018 Targets
• Build a business model that contributes to the advancement of customers’ business and helps • Build solutions using diverse data Creating New value creation them boost their operational e ciency new value through business • Aim to be a reliable partner to customers, and Glory’s CSR Philosophy CSR Promotion Framework establish a scheme for periodically confirming • Select model customers and periodically review progress and customer satisfaction
Glory believes that CSR (corporate social responsibility) CSR e orts in the Glory Group are led by the CSR • Reduce energy consumption per employee by 1% • Reduce energy consumption per employee is achieved by putting its corporate philosophy into Committee, which is chaired by the President and made (base year: fiscal year 2010) practice. This means o ering cash handling machines up of management-level employees. The committee Environmental • Improve energy e ciency of newly developed products Environment • Reduce CO2 emissions from new products and other products and services of high social convenes twice a year, at which time it deliberates on the protection by at least 15% compared to previous models • Carry out biodiversity preservation activities in importance to respond to customers’ needs for basic direction and plans for CSR management and • Carry out 100% of activities planned for this fiscal year cooperation with stakeholders e ciency and accuracy and thus contribute to the establishes policies for major annual CSR initiatives. realization of a safe and secure society. • Implement and verify new ways of working Human resource • Promote work-style reform • Boost operational e ciency Safe and Secure Society President initiatives • Support and secure human resources essential to • O er job-level-specific training and support Social Glory’s business candidates who can lead the company in the future • Continue to use the CSR voluntary checklist, and Promotion of CSR • Conduct CSR-oriented procurement worldwide work to improve assessment scores CSR Committee Philosophy in the supply chain • Spread activities to overseas sites Corporate Corporate Secretariat Philosophy Vision Management Creed Corporate Communications Department • Conduct activities in line with the Corporate Corporate Action Medium-Term Management Strategy Headquarters • Strengthen corporate governance Guidelines Management Plan Governance Guidelines Employee Action Guidelines Department Managers Employee Standards of Behavior Annual Management Plan Strengthening • Strengthen risk management activities and • Conduct risk management from a global perspective and (Glory Spirit) Governance of governance communicate to Glory Group companies communicate activities to Glory Group companies
Mindset Action • Strengthen compliance management and • Conduct job-level-specific compliance education, and Employees communicate to Glory Group companies strengthen collaboration with Glory Group companies Corporate Philosophy Structure Business Management Structure
5 GLORY CSR Report 2018 GLORY CSR Report 2018 6 Major CSR Initiatives in the Value Chain
These are the major initiatives that the Glory Group is carrying out for each stakeholder category in the value chain.
Planning Development Procurement Manufacturing Sales Maintenance
Value Chain Value Glory’s mission is to continue to take on Glory remains dedicated to developing Besides carrying out fair and open Under Glory’s optimized manufacturing Glory analyzes the exact needs of each Glory provides prompt, exacting, and the challenge of developing products and products that respond to the needs of purchasing and ensuring stable system, each of the company’s factories market and customer so that it can provide sincere service to earn the trust of solutions that satisfy customer needs. customers from various countries and procurement, Glory makes CSR part of its around the world uses its own strengths to high-value-added products and solutions customers and provide them with regions. entire supply chain. deliver high-quality products in a timely in a timely manner. satisfaction and peace of mind. manner. Customers Customers Customers Customers Customers Customers • Create new value and solutions • Develop products that match • Ensure quality and pursue • Ensure quality and reliable supply • Provide products that match • Provide prompt, reliable • Plan products that match customer customer needs in a timely manner appropriate, competitive pricing • Shorten lead-time customer needs in a timely manner maintenance needs • Ensure quality • Provide appropriate information on • Improve maintenance quality through Business partners • Boost cost competitiveness • Incorporate universal design products and services customer focus • Promote CSR-oriented procurement Customers Global environment • Develop products utilizing new Global environment • Properly manage customer • Plan services that match customer technologies in unison with suppliers information and personal information needs • Plan environmentally friendly • Strengthen partnerships with • Manufacture with an eye to saving • Properly manage customer products suppliers resources, recycling, and reusing information and personal information Customers Global environment Customers Global environment • Respect human rights in the supply • Develop environmentally friendly Local communities Global environment chain • Sell environmentally friendly products • Map out the product life cycle • Ensure safety in the vicinity of each products Global environment Employees plant • Switch to eco-cars Employees Global environment Employees • Sell CFC-free cleaning goods • Promote a work-life balance Employees • Promote a work-life balance • Promote green procurement • Promote a work-life balance • Provide education to improve • Protect biodiversity • Respect human rights and ensure Employees employee skills occupational health and safety Major Initiatives for Each Stakeholder Initiatives Major • Promote a work-life balance • Train employees based on qualification systems
Energy-induced CO2 emissions 16,716 t-CO2 (0.1% increase over previous fiscal year*) Scope 1 Scope 2
CO2 emissions from parts CO2 emissions from product usage 5.0% increase 2 and materials procured Scope 3, CO emissions from product disposal Category 11 over previous Scope 3, Category 1 185,388 t-CO2 fiscal year* Scope 3, Category 12
CO2 emissions from transportation and shipping 2 2 26.6% increase 2,632 t-CO 176,252 t-CO Scope 3, Category 4 over previous (26.5% increase over previous fiscal year*) (5.4% increase over previous fiscal year*) 2 fiscal year* Environmental Impact 13,144 t-CO
Aiming to provide products and Promoting CSR-oriented procurement Dedicated to constantly returning Quickly responding to social change services that are easy to use in unison with our suppliers to our foundations Providing optimum solutions Aiming to improve customer satisfaction Kiyoaki Jyunichi Miho Aki Mizuki Ryota Kobayashi Ichikawa Kakinuma Morimoto Matsuoka Uehara Product Planning Department, Industrial Design Division, Purchasing Procurement Production Engineering Retail Market Sales Planning Field Service Planning Department, Product Management Division, Development Headquarters Department, Department 2, Department 1, Customer Service Division, Marketing Management Office, Purchasing Division, Himeji Factory, Sales Planning Division, Service Headquarters International Business Production Headquarters Production Headquarters Domestic Business Headquarters Voices Amid globalization and the diversification We regard essential usability as the key We procure the electronic parts—such as On a daily basis we work on creating the work We oversee coin and banknote recyclers that Under the “no downtime” concept for our of customers’ needs in line with changes in focus of product design and aim to create motors and switches—that are used in coin and manual that is the foundation of our manufacturing. carry out cash management within stores, and products, we o er a monitoring service for the social environment, we maintain a products that are easy for our customers banknote recyclers and other products that we In order to manufacture products with quality we conduct sales activities to customers open teller systems. As well as having sense of speed as we work to respond to to use. We endeavor to o er ever-better o er worldwide. As well as working to ensure stability, we include in the manual not only assembly throughout the retail market in Japan. We work customers able to use our products with those needs. We will continue to apply products by always adopting the point of the stable procurement of parts, we are procedures but also quality standards and knowhow. to understand our customers’ business issues peace of mind, we will continue to plan leading technology as we plan products view of the user, and flexibly adjusting our communicating actively with our suppliers as We aim to create a work manual that is easy to and operational configurations and to o er them high-value-added services that help solve that provide our customers with new value. ideas and methods of approach. we together pursue CSR-oriented procurement. understand for our employees in Japan and overseas. optimum solutions in line with those needs. their problems.
*CO2 emission increases over the previous fiscal year are due to increases in production volume.
7 GLORY CSR Report 2018 GLORY CSR Report 2018 8 Special Report Case Convenience for Users, Case Making Visits to Japan 2 E ciency for Delivery Companies 3 More Comfortable and Enjoyable Changing with the Needs In Japan, the increase in online shopping is creating a A record number of foreign tourists—28,690,000—visited of the Times Glory’s coin-operated lockers meet the needs of serious shortage of employees for delivery companies. Japan in 2017. And more are expected to visit in the run-up the increasing numbers of inbound tourists and the Glory helps solve this problem with the development of a to the 2020 Olympic and Paralympic Games in Tokyo. locker specifically for receiving delivered packages. These Glory’s terminal lockers o er service in Japanese, English, Glory’s continued growth of online shopping. lockers have been installed in a wide range of locations, Korean, simplified Chinese, and traditional Chinese. Other including train stations and supermarkets. Online shoppers services that contribute to stress-free locker use include Coin-Operated can pick up their goods anytime, without having to worry the ability to check the availability of lockers online via a about what time the goods cloud server. will be delivered to their Lockers homes or o ce. Delivery companies enjoy greater e ciency since there is no need to return when
customers are not at the Lockers for receiving deliveries, at The locker’s guidance screen is available Sanyo-Himeji Station on the Sanyo Electric in five languages delivery address. Railway Line (Hyogo Prefecture)
Case Keyless and Cashless Case Case 1 4 E ective Use of Limited Space 5 Helping Achieve a Work-Life Balance Glory was the first company in the industry to develop a In February 2018, Glory developed control software that Lockers represent one way that companies are providing keyless locker that generates and reads QR codes. When can be installed in baggage storage lockers already placed benefits to their employees. With Glory’s refrigerated users store their baggage in a locker, they get a receipt in train stations so they can also be used for receiving lockers for receiving and storing fresh foods, company with a printed QR code. This is their locker key, which they deliveries. This means people can use the lockers to either employees can order groceries online that are delivered swipe over the QR code reader to open the locker. An IC store their baggage or to pick up delivered packages. The and stored at their place of work. To open the lockers, they card can also be used to do everything from paying for the result is greater convenience simply input the password service to opening the locker door. Because users have for locker users and greater sent by the online retailer. either a QR code receipt or an IC card to open the locker, operational e ciency for the This lets people use their they needn’t worry about walking around with—or losing—a train stations installing these time after work more key. This also eliminates the need for personnel to deal lockers. e ectively since they no with replacing lost keys, exchanging keys, and handling longer need to go grocery cash. shopping on the way home. LTS-100 Series, the industry’s first locker using QR codes Combination baggage storage/delivery Refrigerated lockers for receiving and receiving lockers, at Sakado Station on the storing fresh foods, installed in a company Tobu Railway Line (Saitama Prefecture)
History of Glory’s Coin-Operated Lockers
First Made-in-Japan Coin-Operated Expo ’70 Provides Impetus for Excellence in Safety, The Journey Continues 1960s Locker with Extendable Time Limit 1970s Spread of Coin-Operated Lockers 1990s Convenience, and Design Today
At the time, coin-operated lockers could only be In 1970, a total of 531 Glory coin-operated lockers were installed Throughout the 1990s, Glory continued to develop lockers that met As a coin-operated locker pioneer, Glory has for over 50 years used for one day, and had to be cleared out in Osaka during Expo ’70: in Shin-Osaka Station, Osaka Station, the changing requirements of the times. The company sought to been pursuing convenience for customers and improvements in manually for use by someone else the following and Ibaraki Station on the Japanese National Railways (now JR). improve security and coin identification accuracy by equipping function and quality. There are currently more than 20,000 Glory day. Compared to baggage check-in counters, they o ered smoother coin-operated lockers with electronic locking systems that better lockers in the field, providing services for users in all types of drop-o and pick-up of baggage, helping to alleviate crowding prevent theft, and coin-sorting functions that use electronic sensors. locations including train stations, airports, leisure facilities, In 1965, Glory developed the first made-in-Japan among tourists. This provided a need for the further rollout of Convenience was further improved by widening locker openings to supermarkets, and more. Whether it’s lockers for receiving coin-operated locker with an extendable time coin-operated lockers, make baggage insertion deliveries to meet the limit. The proprietor of the coin-operated locker as installations spread and removal easier, and demand of online needed only to re-set the extendable time limit nationwide in locations adopting time-usage- shopping, Glory once a day at a certain time, and it could then be such as train stations, based fee systems. continues to meet used for 96 consecutive hours. This development airports, golf clubs, and Glory also developed newly emerging needs validated the functionality and marketability of amusement parks. products with patterns by developing products terminal coin-operated lockers and greatly on the doors to help that o er a wealth of contributed to the advancement of coin-operated lockers match their services to match the lockers as a whole. surroundings and diverse lifestyles of improve the aesthetics. customers. The first made-in-Japan Coin-operated lockers installed in Shin-Osaka Station Lockers adorned with a tulip pattern Refrigerated lockers for receiving and storing fresh food, coin-operated locker at Life Central Square Nishimiyahara shop (Osaka Prefecture) with extendable time limit
9 GLORY CSR Report 2018 GLORY CSR Report 2018 10 For details, please visit GLORY’s website. Governance http://corporate.glory-global.com/csr/management/
Based on its corporate philosophy, Glory is pursuing sound and e cient business management that earns the trust and support of all stakeholders.
Corporate Governance analysis and evaluation related to the Board’s Compliance e ectiveness. In fiscal year 2017, based on past Glory’s corporate philosophy guides its e orts to evaluation results, under a review of the “Rules of the Glory has a Compliance Committee as one way to In addition, Glory provides education to employees to continuously improve corporate value through sound and Authority of Final Decision,” Glory conducted a transfer of maintain and improve its compliance framework. This thoroughly familiarize them with compliance. In fiscal e cient business management, so that the company can authority in order to optimize management and ensure committee—which is chaired by the President and which year 2017, Glory also held e-learning and group training exist in harmony with society and earn the trust and that it conducts speedy decision-making. includes two outside experts (attorneys at law)— sessions for group support of all stakeholders. None of this can be achieved deliberates on important compliance-related issues companies to further without a firm commitment to the continuing Glory’s basic policy on corporate governance is set out in concerning the Glory Group. Glory also has in place four reinforce information improvement of corporate governance. Glory will the Corporate Governance Guidelines. compliance helplines (including one outside helpline) in management and continue its e orts to strengthen the supervisory and Japan. These helplines enable Glory to detect and correct harassment executive functions of management, accelerate Risk Management problems at an early stage, while protecting those prevention. decision-making, ensure transparency and objectivity, seeking consultations. and enhance compliance management. Glory has a Risk Management Committee, which is chaired by the President and which has the purpose of At a compliance training session Corporate Governance Framework maintaining and strengthening risk management for the Glory adopts an audit and supervisory board system. This entire Glory Group. The committee regularly conducts means the company’s Board of Directors, which includes risk assessments and determines the divisions and two outside directors, makes decisions on important individuals responsible for each risk item. It works with Message from an outside director matters and oversees business execution, while the Audit these divisions and individuals to implement and Supervisory Board oversees the actions of the Board precautionary measures against risks during normal By keeping CSR in mind as we carry out core operations, of Directors. An executive o cer system allows the times and to secure and improve a system that can we can further enhance Glory’s raison d’etre. company to separate the management supervisory and respond promptly in times of crisis. business executive functions, thereby enabling speedy Outside Director we assess our governance to be functioning and e cient business administration. In addition, In fiscal year 2017, as well as undertaking a review of the Joji Iki appropriately, but such demands are growing along committees such as the Nomination Advisory Committee company’s risk management rules and risk evaluation with the times. Furthermore, because the common Previously served as Gas Turbine & and the Compensation Advisory Committee serve to boost standards, each group company also completed an Machinery Company president and sense that forms the standard of governance varies representative director and vice president transparency and objectivity when making important analysis and evaluation of its own operations, using those at Kawasaki Heavy Industries, Ltd. according to country and region, we must integrate June 2017, appointed outside director at each nation’s laws and culture into Glory’s management decisions. same standards. Through measures such as these, Glory Glory has strengthened its group-wide risk management Nomination Advisory Committee member governance. In society now, if a problem occurs it Compensation Advisory Committee Furthermore, to maintain and improve the e cacy of its structure. member spreads instantly and often becomes a bigger issue Board of Directors, every year Glory conducts periodic than it really is. From the saying “problems arise at O ering objective support based on own the edges,” even our group companies in Japan and experience as a manager and engineer overseas must pay careful attention.
Corporate Governance Framework (As of June 27, 2018) At Glory, we feel that, as we head toward the 100th It is important to contribute to society via General Meeting of Shareholders anniversary of the company’s foundation, we are our core business Appointment/ Appointment/ entering a period of dramatic change. Drawing out Appointment/Removal Removal Removal the potential of our engineering and our personnel is In recent years there has been an increase in Board of Directors Audit & Supervisory key to achieving sustainable growth, and our Board corporate initiatives in line with Sustainable Board members 8 Directors including 2 Outside Directors (1-year term) Operational 4 Corporate Auditors including of Directors conducts very active and meaningful Development Goals (SDGs) or Environmental, Social, 2 Outside Corporate Auditors audit discussions on this topic. From a standpoint of not and Governance (ESG). I believe that we can make Representative Directors Cooperation Examination/Reporting Accounting Auditors participating in business execution, I regard being the greatest contribution to realizing a sustainable Examination Nomination Advisory Compensation Advisory Accounting able to share my opinion from an objective point of society via our most socially influential operations, Committee Committee audit Advice/Direction view as my most important role. I am requesting the which is our core business. For Glory, its o ering of deepening of Glory’s management strategy, such as accurate, easy-to-use products and services that Compliance Committee Management Conference the creation of new business and changes to contribute to improved production e ciency will Directors, Corporate Auditors, Corporate Lawyers Executive O cers, and others Disclosure Committee Internal business models. I want to help push forward the result in a contribution to society. I believe that Glory Audit Advice/ Outside Consultants company’s initiatives by o ering advice based on my can improve its social raison d’etre by pleasing Risk Management Committee Business Promotion Conference Department Direction Executive O cersExecutive Audit experience as a manager and an engineer. stakeholders and remaining conscious of CSR while engaging in its core business. 4 compliance helplines Governance amid continued globalization
Development Manufacturing Sales Maintenance Administrative divisions divisions divisions divisions divisions Social demands regarding corporate governance have become stricter in the last few years. At Glory Group companies
11 GLORY CSR Report 2018 GLORY CSR Report 2018 12 For details, please visit Glory’s website. Quality Initiatives Quality policy: http://corporate.glory-global.com/csr/stakeholder/customer/
Glory provides products and services in a timely manner to win the confidence and satisfaction of customers.
Next-Generation Manufacturing for We will provide products and services in a timely manner to win Quality Policy the Creation of a Collaborative Environment the confidence and satisfaction of customers. As labor shortages have become an urgent social issue in to flexibly respond to multi-product, variable-volume 1 By sensing advanced market needs, develop products that are Japan, expectations have grown that robots could be an production and achieve further labor savings and quality Three Priority attractive to customers. e ective solution. With the goal of applying at production stability in a wide range of industries, including the fields of Guidelines 2 Establish the quality of products at the earliest stage possible. sites outside the company the production technology and food and cosmetics, knowhow that it has cultivated so far, in April 2017 Glory thereby contributing 3 Place importance on customers’ first impression of quality and on 2 after-sales services. began the ASROF* system integration business for the to next-generation practical use of collaborative robots. manufacturing. By o ering a total solution from robotic line automation to development of peripheral equipment and operational Providing Peace of Mind to Customers knowhow and after-sales service, Glory is creating a collaborative environment for robots and humans. It is able Worldwide via Maintenance Services *2: ASROF: Automation Smart Robot for Future Collaborative labor between humans and robots In order for its customers worldwide to be able to use its ● Annual Quality Meetings products with peace of mind, the Glory Group maintains a Maintenance quality managers from each region of the direct sales and direct maintenance network across 24 world and members of the development division and quality Customer Case Study: Sanshu Seika Co. Ltd. countries outside of Japan, including the U.S, Europe, and assurance division meet to share information on their Asia. Currently, that network includes around 2,000 maintenance activities and on the operational and quality For over 60 years, Sanshu Seika has been producing and selling unique rice crackers and pasta snacks using special ingredients and maintenance sta members and maintenance contracts conditions of products in the markets of each region. Glory traditional manufacturing methods. It has striven to maintain an easy working environment for its employees. In a joint development e ort with Sanshu Seika, Glory installed ASROF into its line for packing its products into boxes. with customers for a total of more than 240,000 products. improves its product quality by feeding back the information gained from maintenance calls. Background to the installation Glory receives inquiries from customers regarding issues Results of the installation
with its products or requests for repair via call centers set Fostering Personnel Who Can Maintain Quality ● Amid labor shortages, the company wanted to ensure ● The move allowed employees to devote their time to the work considered as stable quality and improved productivity in its wrapping requiring human skills, such as the production process and product up at each of its bases. When it is determined that a visit by ● Group Skill Training process, which is the process that requires most labor. inspection. That led to safer, higher-quality product manufacturing. Glory maintenance sta is required, a sta member close to Aiming to improve the expertise and response skills of ● The company wanted to use a humanoid robot with a ● Since the humanoid robot is programmed so that a simple operation can the customer’s technical sta , Glory conducts group skill training by region compact line layout that could adjust quickly and flexibly to smoothly convert it to handle a di erent production item, it was able to location is quickly or country. The sta responsible for each product model multi-product, small-volume production. e ciently perform multi-product, small-volume production. dispatched. Glory has train the technical sta in the products being o ered in their put in place a thorough market. Glory is ■ ASROF’s duties support structure in enhancing the order to solve e ectiveness of this customers’ problems training by having the as quickly as possible. trainees undergo Responding to a customer’s inquiry via telephone support preparatory study via an online education system ahead of the Initiatives to Improve Maintenance Quality training day. Check the shape and weight of the container Pack the crackers into the container Based on the total weight, check the content amount and number An explanatory page from the online training of servings of crackers in the container. Forward to the next In order to provide high-quality maintenance services that process only those that have successfully passed this phase. exceed the satisfaction of its customers, Glory employs a ● Technical Sta Cup variety of measures, including group skill training and joint The Technical Sta Cup that Glory has been running in initiatives with each region of the world. Japan for more than 20 years, Glory also now runs in the North American region, the EMEA*1 region, and the Asia and We believe that humanoid robots are extremely Our desire going forward is to improve versatility, Joint Initiatives with Each Region of the World China region. Technical sta from each region gather and e ective for multi-product, small-volume with an eye to including artificial intelligence. If ● Senior Service Leadership Meetings compete against each other by using the expertise they have production, where production e ciency can’t be we can enable programming changes and the Maintenance managers from each region of the world meet accumulated on a daily basis, increasing their motivation increased by using dedicated machinery like mass adjustment of robot hand parts to suit package production can. Furthermore, a collaborative robot shapes and production items onsite—even to share their initiatives and success stories regarding each and communication can work close to humans without the need to where multiple humanoid robots are installed— regional maintenance business, and also to share their between them. progress in measures being undertaken on a global scale. In provide safety barriers—this is a distinct production will be able to continue without *1: EMEA: Europe, advantage. Faced with chronic labor shortages, halting the line. That will lead to increased order to provide maintenance services that meet the diverse the Middle East, Africa improving productivity is now a key issue for small customer satisfaction. We anticipate further needs of customers, Glory aims to improve the maintenance to medium enterprises, and we hope that together development from Glory. quality of the entire Glory Group and boost the level of each Shinichi Sainohira with Glory, we can spread the use of ASROF of those operations. President Sanshu Seika Co. Ltd. beyond the borders of region and industry.
The Technical Sta Cup held in the North American region
13 GLORY CSR Report 2018 GLORY CSR Report 2018 14 For details, please visit Glory’s website. Human Resource Initiatives http://corporate.glory-global.com/csr/stakeholder/employee/
Glory respects every employee as an individual and strives to create an enriching and pleasant work environment.
Promoting Diversity Work-Life Balance Fostering Human Resources New Career-Building Initiatives Glory helps employees achieve their personal career plans by Glory aims to build a workplace where every employee, Glory has in place numerous initiatives aimed at Fostering Globally Minded Human Resources providing systems and measures that support the regardless of gender, nationality, sexual orientation, or promoting a work-life balance. These initiatives enable Today, overseas sales account for approximately 47% of development of their capabilities and that further their careers. disability, can utilize his or her talents to the fullest. employees to match their job and work schedule to their Glory Group consolidated net sales, and overseas lifestyle while maximizing their abilities and career employees account for approximately 39% of all Group ● Employee Awareness Surveys Equal Opportunities for Women potential. employees. Given this group make-up, the company is In April 2017, Glory conducted a survey targeting its executive Since fiscal year 2011, Glory has been focusing on placing special emphasis on fostering human resources o cers and employees, on topics such as work motivation, ensuring gender equality and delivering equal Work-Life Balance Support Systems that can support international expansion. It is bringing awareness of compliance, and understanding and opportunities for female employees. In fiscal year 2016, this objective about through programs such as the implementation of Glory’s CSR and management plans. This ● Balancing Work and Parenthood Glory formulated an action plan based on Japan’s Act on Since April 2017, Glory has provided subsidies for short-term overseas study program and the GUTS year’s survey revealed that many improvements have been the Promotion of Women’s Participation and Advancement parents working full-time at Glory sites (other than the program. made since the previous survey, including; feeling stuck in a in the Workplace, and has been creating a more inclusive Glory head o ce) to hire childcare services. The company rut at work, feeling overwhelmed by the volume of work, and workplace ensuring there is more female representation. has also created an in-house daycare center called “G Glory also provides as many opportunities as possible for the level of penetration of the corporate philosophy. On the Kids Home” for children of full-time Glory employees. exchanges between employees in Japan and those at other hand, the survey revealed that the understanding of the overseas subsidiaries. management plan and putting it into action, feeling convinced Action plan based on the Act on the Promotion of Such measures support employees by placing an equal Women’s Participation and Advancement in importance on career development and parenthood. with the fairness of evaluation, and awareness of the future the Workplace ● Short-Term Overseas Study Program prospect of the company was on the decline among general This program sends participants to language schools in employees, particularly those in lower ranking positions. ● Balancing Work and Caregiving Increase 20% of new graduate hires in the next Glory also helps employees work with peace of mind the U.S. or the U.K. for three months so that they can three years to be female １ while caring for sick or elderly family members. Glory acquire the language and business skills needed to do Taking these results into consideration, for fiscal year 2018, Over the next five years, double the number of has improved and expanded its employee support system business on a global stage. By exposing themselves to Glory will commit to the following actions: permeate the female managers (i.e., those at the rank of to include extended periods for nursing care leave and diverse ways of thinking, values, and cultures, employees corporate message company-wide; appropriate operation of 2 section manager or higher) extended periods during which employees may reduce develop into the personnel system; and create an environment in which their daily working hours in order to look after a sick or individuals with not employees, company-wide, can freely take on challenges. elderly family member. only improved Employing People with Disabilities language skills, but ● Career Training In 1999, GLORY Friendly Co., Ltd. was established to give Reducing Long Work Hours also a global Glory holds level-specific career training for its employees. people with disabilities an opportunity to make a living and Glory strives to modify work processes and schedules in perspective. In fiscal One of these is the Self-Inquiry Adventure Training, which contribute to society. Under the slogan “Foster a creative order to reduce constant bouts of long work hours. This year 2017, four is held for employees when they first join Glory, on their working environment by valuing communication with one helps to bolster employees’ mental and physical employees took part fourth year at the company, and when they turn 30 years another and fully demonstrating our skills,” employees in the study program. Participants celebrate the completion of old. This program allows them to envision a career plan well-being and maintain their motivation for work. their study program conduct duties such as company janitorial work and In an e ort to impress upon employees the importance of and to grow into competent personnel who can achieve landscaping, in-house working e ciently so as to avoid overtime, Glory has their career goals. In fiscal year 2017, a total of 187 documentation and instituted “no-overtime days” and “no-overtime weeks.” ● GUTS Program employees took part in the program. mail delivery, and And to encourage employees to go home on time, the Glory has developed a program called GUTS (Glory Up waste disposal. Glory company has also put a limit on the number of overtime Technique Shōshūdankaizen [“small-group reforms”]), Respecting Human Rights fully complies with all hours they can work each day. which aims to boost employees’ problem-solving abilities equal opportunity and their capability to think and act for themselves by All employees must abide by Glory’s Corporate Action laws and never taking on operational reforms. It also aims to create a Guidelines. These stipulate rules on respect for individuals, discriminates on the livelier work environment. GUTS is a world-wide initiative; talent development, and workplace safety. They also clearly Participants take part in the first Friendly Skills grounds of disability. Competition it is also taken up at production group companies call for respect for other employees’ diversity, personalities, including those overseas. In fiscal year 2017, there were individual di erences, and—above all—human rights. To a total of 340 action themes. ensure that these e orts extend throughout the entire supply chain, the company has produced the Glory CSR I recently had the opportunity to visit the first develop the capabilities of each person and an A company-wide GUTS conference is held annually at the Procurement Guidebook (for suppliers in Japan) and the Friendly Skills Competition organized by Glory environment where they can exercise their full Glory head o ce. At this event, outstanding circles, Glory Supplier Code of Conduct (for overseas suppliers). Friendly. I was truly happy to see the hard potential while being given comprehensive including those from These documents outline rules on respect for human rights work and progress of graduates from my support. That’s why we can send our group companies are that all suppliers are urged to follow. school, as they took on tasks such as cleaning graduates to work at Glory Friendly with peace selected to give desks and floors. of mind. Society is becoming ever more diversified, and we hope that Glory Friendly presentations on their The Glory Group has signed and participates in the United Satoshi Hosokawa One of our most important responsibilities is to will remain a company that provides a place achievements, and Nations Global Compact, which advocates universal Career Guidance Manager, secure employment for our graduates so that where every employee can play an active role best practices are principles covering the four areas of human rights, labor, Hyogo Prefectural Himeji School for Students and Children with they can go out and make a living for and coexist happily with one another. shared the environment, and anti-corruption. The Group will Special Needs themselves. Glory Friendly has programs to company-wide. continue to ensure respect for human rights is a Employees from GLORY (PHILIPPINES) INC. give a presentation at the company-wide GUTS cornerstone of its management. conference
15 GLORY CSR Report 2018 GLORY CSR Report 2018 16 For details, please visit Glory’s website. Social Initiatives http://corporate.glory-global.com/csr/stakeholder/community/
Glory will harmonize and advance the interests of the company and of society. As a good corporate citizen, it will also actively participate in social action programs.
Supporting the Promotion of Sports Other Contributions to Society
Glory Sponsors Victorina Himeji Volleyball Team ● Hands-on Science Classes Participating in Run for the Children Protecting the Marine Environment Glory has signed a sponsorship agreement with Himeji In hands-on science classes held during the summer In November 2017, seven employees of Glory Global in the Philippines Victorina Co., Ltd., which manages the Victorina Himeji holidays, elementary school students build their own Solutions (Spain) S.A. took part in the Run for the Children In October 2017, GLORY (PHILIPPINES), INC. donated “reef women’s volleyball team (general manager: Masayoshi science projects, experiencing firsthand the wonders of charity race. The event’s aim is to contribute to the buds” as its contribution to an ocean regeneration project Manabe, coach: Yoshie Takeshita). Based in Himeji, Hyogo science and in the process cultivating their creativity and advancement of research into intensive care and to in the municipality of Rosario in the province of Cavite. Prefecture, Victorina Himeji is Japan’s first professional unique powers of imagination. Glory employees take part promote healthy lifestyles. Proceeds gathered at this This artificial coral is made from low-impact material and women’s volleyball team. by helping the students with their projects. event go towards supporting activities of a biomedical provides a habitat for sea organisms. Reef buds also research foundation at the Niño Jesús University contribute to the stabilization of the ocean’s pH balance, Besides playing in various volleyball tournaments, the In fiscal year 2017 Children’s Hospital. helping prevent team promotes the sport in the community through science classes, 200 degradation of the activities that include appearances on talk shows and students from grades marine environment volleyball clinics for elementary and junior high school three to six took on the caused by increasing students. Glory strives to use sponsorship as a way to challenge of building atmospheric CO2 stimulate community-level sports and support the eight-legged robots concentrations. development of the next generation. using a crank Students build an Employees who donated the reef buds mechanism. eight-legged robot under the guidance of a Employees who took part in Run for As a company founded in Himeji, Glory fully understands Glory employee the Children Victorina Himeji’s vision—“From Himeji to the world”— Making Wood Block Puzzles from Sustainable Wood A completed eight-legged robot and will support the team in all its endeavors. Volunteering in the Bollywood Farm Tour With the goal of protecting the environment and ● Children’s Theater In June 2017, five employees of Glory Global Solutions contributing to children’s education, Glory creates The Children’s Theater project is held with the goal of (Singapore) Pte. Ltd. volunteered in the Bollywood children’s building blocks and puzzles from sustainable enriching the aesthetic sensibilities of youngsters and Veggies Farm Tour, an event held for children living in wood (wood from forest thinning) with the support of the planting in them the seeds of creativity. facilities run by Canossaville Children and Community Lifestyle Research Institute of Forests NPO. Services in Singapore. The fun- and activity-filled day saw In fiscal year 2017, a the children touring the Bollywood Veggies farm to see For fiscal year 2017, a total of 133 employees at nine total of 2,900 elementary gardens of fruits, vegetables, and herbs, and learning local Glory o ces in Japan, including those in Tokyo and school students and their how produce is grown. Kyushu, took part. The participants used masking tape to Victorina Himeji team members pose for a photo at a press conference parents were invited to color cubes cut from sustainable wood to make three performances of the sets of wood block musical, Children in the puzzles (totaling 378 Storm, presented by the pieces). The completed Shiki Theater Company. Children enjoying the musical puzzles were donated to At the 1st Glory Cup Victorina elementary school volleyball clinic a daycare center in Kumamoto, Kyushu. Children on the Bollywood Farm Tour ● Hands-on Classes for Parents and Children This program is held every spring and autumn with the Donating the wooden puzzles to Fostering the Next Generation a daycare center in Kumamoto goal of strengthening the bonds between parents and GLORY Foundation for Elementary School Students children through a range of fun and exciting experiences. Hosting the Great Glory Bake O In March 1995, Glory established the GLORY Foundation Employees from Glory Global Solutions (Hong Kong) Ltd. Cosponsoring the World Heritage Himeji Castle for Elementary School Students with the goal of In May 2017, a total of 80 children and parents, selected and Glory Group companies in three other Asian Marathon 2018 supporting the sound development of young people. by a lottery, went to see the Shiki Theater Company’s countries held an in-house charity event called the Great Glory was a cosponsor of the World Heritage Himeji Through the foundation, the company conducts sports, performance of the musical Cats, followed by a backstage Glory Bake O . Sweets such as cakes and mu ns baked Castle Marathon 2018, held in February. Fifty Glory arts, and cultural activities that have included hands-on tour. Later that year, in November, 300 students and their by participants were sold to Glory employees, with the employees volunteered on race day to assist science classes, hands-on classes for parents and parents were invited to see a hot-air balloon at a local proceeds going to organizations helping victims of approximately 7,000 participants running the full children, and children’s theater. A cumulative total of elementary school. Participants learned how hot-air natural disasters throughout Asia and to local charity marathon. 99,000 people have taken part in these activities since the balloons work and took turns boarding one anchored at groups. foundation was launched. the school. Several Glory employees also took part in the race The foundation also provides assistance to organizations itself, wearing Glory that work towards the sound development of elementary t-shirts bearing the school students through activities in sports, science, and 100th anniversary logo culture. as they made a spirited run to the finish line. At the hot-air balloon event Participants in the Great Glory Bake O Glory employee volunteers cheering on the runners
17 GLORY CSR Report 2018 GLORY CSR Report 2018 18 For details, please visit Glory’s website. Environmental Initiatives http://corporate.glory-global.com/csr/environment/
The entire Glory Group works to protect the environment under the Glory Environmental Vision.
To create a sustainable society, the Glory Group has Using Environmentally Friendly Nesting 2017 Medium-Term Environmental Plan, Fiscal Year 2017 Results, 2020 Medium-Term Environmental Plan formulated an environmental vision with three areas of Glory designs products based on the concept of nesting*1 focus: products, business, and awareness. Under this right from the development stage. By conducting design with Activity Activity 2017 Medium-Term Fiscal Year 2017 Fiscal Year 2017 2020 Medium-Term vision, the entire Glory Group is taking action on the consideration for material, thickness, necessary amount, Areas Themes Environmental Targets Targets Results Environmental Targets themes of the prevention of global warming, management and molds of the components used in the product, nesting Reduce CO2 emissions Reduce by at least Reduce CO2 emissions compared and reduction of chemical substances, e ective use of can be done for each product and component processing can compared with previous Prevention of 15% (for products Reduced by average of 27.3% with previous models by at least models by at least 15% resources, and preservation of biodiversity. be carried out according to production plans. In addition, global warming developed in fiscal (target achieved for 16 of 25 models) 15% (average across all new (average across all new year 2017) products) nesting allows components to be designed on to and cut products) Developing Environmentally from a metal sheet to make the most e cient use of the Friendly Products material. This reduces the amount of material waste and has Products 2 Management resulted in a yield rate* as much as 15% or higher than Development of and reduction Make all new products RoHS Comply with all Make all new products RoHS All new products were RoHS compliant The Glory Group develops environmentally friendly previously. environmentally of chemical compliant relevant laws compliant friendly substances products that minimize environmental impact throughout products the product life cycle—from material procurement and Nesting means that customer use of the product through to final disposal. only the necessary Reduced by average of 6.1% Reduce by at least Reduce CO2 emissions (by reducing number of parts) amount of product is E ective use 3% (for products Note: To be established at a later during parts manufacturing Note: Applies to G-Eco products of resources developed in fiscal date Glory certifies products as G-Eco products if they satisfy produced, and only by at least 10% (13 of 25 models achieved emissions same as or year 2017) certain in-house standards for environmental when needed. The lower than previous models) friendliness—for example, if they exhibit electric power result is the e ective Have environmentally friendly Have environmentally e ciency at least 15% better than existing products and if use of resources. A fiber laser cutting machine is used to process At least 50% of products account for 70% of sales friendly products account components according to a nested design sales Accounted for 63.8% of sales (fiscal year 2020) they conform to regulations on chemicals contained in Prevention of for at least 55% of sales *1 Nesting: Making multiple components at the same time from a single steel sheet. global warming products. Of the G-Eco products developed in fiscal year *2 Yield rate: The number of products that can be made per amount of raw material. Reduce annual Reduced annual average by 2.1% Reduce annual per-employee Reduce annual per-unit average by 1% energy consumption by 1% (base 2017, the R03 Series coin and banknote recyclers for energy consumption by 1% year: fiscal year 2010) convenience stores use approximately 23% less electricity Business during operation than their predecessor products. Preserving Biodiversity Reduction of environmental Management impact from and reduction Strictly manage chemical Conducted CMS audits at 6 group companies in Strictly manage chemical Conduct CMS audit Since fiscal year 2011, Glory has strived to protect and business of chemical substances on a global scale Japan (to comply with RoHS Directive) substances activities maintain biodiversity through initiatives such as forest substances conservation activities and nature appreciation events at
the Glory Yumesaki Forest (Himeji City, Hyogo Prefecture), Reduce annual volume of Reduce annual volume of waste E ective use Manage control Reduced annual volume of waste generated by waste generated by 1% generated by 1% (base year: fiscal with the aim of conveying to young people the importance of resources limits average of 4.1% (base year: fiscal year 2010) year 2010) of nature. In fiscal year 2013, Glory began expanding its
R03 Series coin and banknote recycler activities to the Kanto region and in fiscal year 2017 it held a forest conservation activity in Hachioji City, Tokyo. In Himeji: Held forest conservation activity in April (20 addition, a tree-planting event was held in Yamamoto Town, trees planted, 1 hectare of forest thinned); held Reducing Environmental Impact Increase the contribution Plant 20 trees nature appreciation event for employee families in Increase contribution to Miyagi Prefecture, where Glory employees planted 100 that the Glory Yumesaki October biodiversity preservation (improve from Business Activities Forest makes to biodiversity Thin 1 hectare of management criteria) Japanese black pine trees to help restore a coastal disaster preservation (continue forest Kanto area: Helped restore coastal disaster Promoting Environmentally Friendly Logistics prevention forest that had been ravaged by the tsunami botanical surveys and prevention forest in Yamamoto, Miyagi Prefecture in Plant 20 trees a year improve management April; held forest conservation activity in Hachioji, Glory strives to be environmentally friendly at its triggered by the 2011 Great East Japan Earthquake. criteria) Tokyo in May; held cleanup on banks of Arakawa Thin 1 hectare of forest a year distribution centers. Collaboration is carried out with River, Tokyo in March; donated puzzles made from other companies to ensure both their products and Glory Another example of group-wide contributions to Preservation of sustainable wood to daycare center in October biodiversity products can be sent together to delivery points. In biodiversity preservation is the participation by Himeji: 82 people participated in forest conservation addition, greater shipping e ciency is achieved through employees of GLORY (PHILIPPINES), INC. in the Awareness activity (3 families [8 people] of Glory suppliers also e orts including loading products bound for multiple Adopt-A-Tree Park Program since fiscal year 2011. participated); 89 people participated in nature Raising appreciation event (3 families [13 people] of Glory destinations on to one truck that makes trips to various environmental suppliers also participated) Formulate plan delivery points. Furthermore, by switching transport from awareness Cooperate with stakeholders Cooperate with stakeholders to to preserve biodiversity Kanto area: 67 people participated in forest preserve biodiversity Carry out plan trucks to conservation activities in Yamamoto, Miyagi lower-impact Prefecture and Hachioji, Tokyo (6 family members of Glory customers and suppliers also participated); 18 methods such as people participated in cleanup on banks of Arakawa railways and ships, River, Tokyo CO2 emissions are cut and energy is Conducted questionnaire of overseas group Develop environment- Ascertain situation companies Disclose environmental used more e ciently, related action programs on information on CSR Report and resulting in a lower a global scale Formulate plan Overseas group companies held biodiversity website impact on the preservation activities and community cleanups environment. Loading products on to a railway container Employees participating in the Adopt-A-Tree Park Program
19 GLORY CSR Report 2018 GLORY CSR Report 2018 20
Stakeholder Dialogue
Glory communicates with stakeholders and strives for appropriate information disclosure.
Dialogue with Customers Dialogue with Business Partners Third-Party Opinion
Glory takes the opportunity to introduce the Glory Group’s Suppliers are important partners that enable Glory to products and services to customers in Japan and around consistently manufacture high-quality products, and it is About the Glory CSR Report 2018 Chika Saka Advisor to the President and the world and to hold dialogues with them. vital that a cooperative system is in place. To this end, ・ Glory’s CSR Advancements Described in the CSR Report 2018 Professor, School of Business Glory has been holding annual Supplier Conferences in This year’s CSR Report reveals the following progress from the Administration, Kwansei Gakuin University; Doctor previous year. In March 2018, Glory opened its renovated Glory Next Japan, where the company explains its current situation, Member of the Science Council of Japan, member of the Osaka Prefecture Environment Council , Gallery, the head o ce showroom, where visitors can strategies, and purchasing policy. These conferences are (1) The company has established its new Medium-Term executive director of the Japan Business Analysis experience the history and technologies behind the also held at GLORY Products Ltd., GLORY Denshi Kogyo Association, board member of the Japanese Management Plan, in which the most obvious policies are the Association for Research in Disclosure, and board company’s progression story. Divided into four zones— (Suzhou) Ltd., and GLORY (PHILIPPINES), INC. This is part change from last year’s “enhance profitability” to “realize member of the Japan Corporate Social Accounting and Reporting Association. Awards include Japan Prologue, History & Technology, Core Technologies, and of an e ort to build the trusting relationships that allow sustainable business management,” and from “meet market Accounting Association’s Association Award. Glory Future—it features actual products and videos that Glory and its suppliers to share the common goal of needs” to “strengthen collaboration with various partners to solve take visitors through the company’s history, products, and achieving a sustainable society. social issues.” Glory shows an awareness of Sustainable works to be a good corporate citizen, through activities to foster the technological developments since its foundation. Development Goals (SDGs) as it brings sustainability and next generation and to contribute to communities around the world. Glory also holds Quality Improvement Activity Workshops collaboration to the forefront. Glory has responded to my (7) In environmental initiatives, Glory describes its success in Glory further communicates with customers in Japan and where suppliers present their quality improvement third-party opinion of last year: it has shifted its management areas such as improving resource productivity through the focus by taking a broader vision and a long-term view as it overseas by holding private exhibitions and by taking part initiatives. This event enables suppliers to share adoption of nesting. approaches its 100th anniversary. in major trade shows. Glory also invites its customers to information on best practices. (2) In the process for identifying materiality (material issues), 11 the Himeji and Saitama factories, so they can see the ・ Looking Ahead to the Next 100 Years items were chosen and classified into five priority CSR themes. In this year’s report, Glory states its commitment to pursuing production sites for themselves. This gives them a deeper For example, two years ago in the third-party opinion, I pointed sustainability in its second century of business as it works understanding of the company’s production system and out that the company should formulate a medium-to-long-term together with society to solve social issues. quality control. strategy that allows it to seamlessly link key performance indicators (KPIs) in CSR with KPIs for raising corporate value; and I am studying financial data covering more than 30 years of over that it should establish concrete action plans and KPI progress 80,000 listed companies in 148 countries worldwide. Research management. Glory did these and has made incredible progress has revealed issues such as how companies distribute their Supplier Conference in Japan GLORY Denshi Kogyo (Suzhou) Ltd. as a result. added value between workers and investors, and the truth about holds Supplier Conference (3) Such progress can also be seen in the commitment of top how companies avoid taxes. In view of the impact that companies management. Glory states that it will “strengthen collaboration have on society, I think that they have a bigger-than-ever role to with various partners to solve social issues” in its second century, play and that collaboration among companies is crucial to
Glory Next Gallery Glory Innovation Forum, and has shown that is working to solve social issues through its achieving what Glory calls “creating shared value (CSV).” (head o ce showroom) a private exhibition (Germany) business strategy, in line with the SDGs. Dialogue with Employees (4) In the area of governance, Glory revised its risk management Mother Teresa once said, “If you want to bring happiness to the Dialogue with Shareholders and Investors rules and risk evaluation standards in 2017, and the report shows world, go home and love your family.” I believe that the same can Since fiscal year 2012, Glory has held meetings in which a strengthened system under which the entire Glory Group is be said of achieving the SDGs: all organizations must take good Glory strives to build long-term trusting relationships the president and other senior executives provide carrying out risk analysis and assessment under the same care of the community and the people who live there. The fact that with its shareholders and investors. To this end, the updates to employees. The president explains the standards. Glory has always contributed to communities in a down-to-earth company engages in constructive dialogue to deepen company’s philosophy and the state of its business. The (5) In the area of quality initiatives, the report introduces Glory’s way is something we know from the company’s CSR report and firsthand from its stakeholders. I believe this will lead to the their understanding of Glory’s management policy and goal of these meetings is to enhance employees’ sense of Automation Smart Robot for Future (ASROF) and its fascinating creation of further corporate value in the company’s second business activities. It also works to increase management involvement in business management and to boost their application to show how the company is creating environments in century of business. transparency through prompt, accurate, and fair motivation. In fiscal year 2017, these meetings were held which humans and robots can work together in harmony. (6) In social initiatives, the report shows the many ways Glory information disclosure. In fiscal year 2017, Glory hosted a at nine locations throughout Japan. In addition, through tour of the Saitama Factory for institutional investors, a site visits, in-house events, and group company visits, tour of the showroom for shareholders, and company senior executives can interact closely with employees, Glory’s Response briefings for individual investors. fostering a sense of oneness among everyone in the Glory Group. We once again o er our sincere thanks to in which we collaborate with various partners to The Glory corporate website has a special section for Professor Saka for her valuable remarks on our solve social issues in order to realize new levels of shareholders and investors. Here, quarterly financial Once a year since fiscal year 2008, Glory has held a tour CSR e orts. trust that we can provide to customers. Professor reports, shareholder reports, annual reports, and other of its head o ce for families of employees. Family Saka has rated Glory highly on these initiatives materials are disclosed in a timely manner for the members get to view the workplace, eat at the company Our 2020 Medium-Term Management Plan, which from the standpoint of SDGs, and this motivates convenience of shareholders and investors. cafeteria, and meet the president. we announced in May 2018, is the first step us to work even harder in the future. towards realizing the Long-Term Vision 2028, our target for 10 years from now. Amidst the spread Future e orts are aimed at achieving our of fintech, the diversification of payment long-term vision, which states “We enable a methods, and a rapid move towards a cashless confident world.” We will ensure that our Motozumi Miwa economy, we vow to continue with our existing stakeholders receive thorough and periodic Executive Vice President, businesses while opening new business domains reports on these e orts. GLORY LTD.
Tour of Saitama Factory for Showroom tour for shareholders President Onoe visits an President Onoe visits the European institutional investors in-house technology event Master Distribution Centre (EMDC) in the Netherlands
21 GLORY CSR Report 2018 GLORY CSR Report 2018 22 Corporate Communications Department Management Strategy Headquarters 1-3-1 Shimoteno, Himeji, Hyogo 670-8567, Japan Phone: +81-79-294-6317 Fax: +81-79-299-6292 corporate.glory-global.com
GLORY CSR Report 2018