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Shiseido's Corporate Social Responsibility Back Issues 2010 [Shiseido’s Corporate Social Responsibility] "Beautiful Society, Bright Future." Shiseido is committed to pursuing a variety of CSR activities that earn the empathy of society. *CSR: Corporate Social Responsibility [CONTENTS] ○ Commitment by Management ·················································································1 ○ [What is Shiseido CSR?] ●Overall Image of Shiseido (CSR Corporate Mission, The Shiseido Way and The Shiseido Code) ··························3 ●Domain and Promotion Structure of CSR Activities··················································6 ●Participation in the United Nations Global Compact ·············································· 11 ○ Corporate Profile ································································································· 13 ○ Management structures ●Corporate Governance ······················································································· 15 ●Shiseido's corporate ethics ·················································································· 20 ○ Activities taking advantage of Shiseido's core business ············································· 30 ●Shiseido Life Quality Beauty Center ··································································· 32 ●Shiseido Life Quality Beauty Seminars ································································ 37 ○ Initiatives with Stakeholders ●With Our Customers ························································································· 44 ●With Our Business Partners ·············································································· 62 ●With Our Shareholders ····················································································· 65 ●With Our Employees ························································································· 67 ■Shiseido "Shared Education" Declaration ■Gender Equality Initiatives ■Action Plan for Supporting the Development of the Next Generation ■Creating an Environment in Which Employees Can Raise Their Children and Continue Working with Peace of Mind - Kangaroo Staff - ■Physical and emotional wellness ■Work Improvement Proposal System (Chie-Tsubaki Proposal System) ■Aiming to develop a workplace in which all employees can work enthusiastically ■Toward Building Favorable Labor-Management Relations ■Implementation of Employee Satisfaction Survey and Providing Feedback for Promoting Internal Activities ■Personnel Data Shiseido's Corporate Social Responsibility Back Issues 2010 ●With Our Society ······························································································ 95 ■Activities to Support Academic Research ■Corporate Policy on Animal Testing and Alternative Methods ■Supporting Female Researchers ■Kangaroom Shiodome, a Nursery School Operated by Shiseido ■Initiatives for Children ■Initiatives at Domestic Business Locations ■Initiatives in Overseas Business Offices ■Employee-led Social Contribution Activities ■Disaster Relief ■Shiseido Social Welfare Foundation ■Corporate Cultural Activities and Support of Artistic and Cultural Activities (Philanthropy) ○ For our precious environment ●Initiatives for a Healthy Environment································································ 151 ●Environmental Management ············································································ 154 ●Reducing Environmental Impacts ····································································· 155 ●Strengthening Environmental Communication ··················································· 170 ●Environmental Data ······················································································· 181 ○ History of social and environmental activities························································· 182 ○ Communication ●Third Party Evaluation ···················································································· 187 ○ GRI Guidelines Index ························································································· 191 Copyright (C) 1995-2010 Shiseido Co., Ltd. All rights reserved. Shiseido's Corporate Social Responsibility Back Issues 2010 TOP > Commitment by Management Commitment by Management Toward Realizing "This moment. This life. Beautifully." for Customers Worldwide Shiseido declared its intention to redouble its efforts toward transforming into a global company under a three- year plan started in 2008. In 2004, Shiseido announced its intention to participate in the United Nations Global Compact underscored by 10 principles in the areas of human rights, labour standards, the environment and anti-corruption. In addition to adhering to and putting these principles into practice, Shiseido is also fully committed to realizing the ideals imbued in its message "This moment. This life. Beautifully." Specifically, the core initiatives of Shiseido's corporate social responsibility (CSR) activities include contributing to society through the cosmetics business, promoting activities to support women due to the fact that 90% of our customers and 70% of our employees are females, addressing environmental issues as a top global priority and undertaking measures for ensuring safety and reassurance. To adhere to and put into practice "contributing to society through the cosmetics business," Shiseido is carrying out the SHISEIDO LIFE QUALITY BEAUTY PROGRAM employing cosmetics and beauty techniques with the aim of improving the quality of life (QOL) of persons with serious skin, psychological or physical concerns both domestically and abroad. Under this program, the SHISEIDO LIFE QUALITY BEAUTY SEMINAR is held approximately 3,000 times throughout Japan every year as a beauty seminar for elderly persons and persons with disabilities at such places as welfare facilities. In fiscal 2009, Shiseido newly established the SHISEIDO BEAUTY SUPPORTER SYSTEM in which all Shiseido employees can participate and contribute. This program, which started with myself and other members of management and other employees taking part, has cumulated to date with a total of 1,400 employees participating from business locations in Japan. Every time we supported such efforts, the opportunity to see that cosmetics lighten customers' hearts, bring joy and give them confidence and courage was deeply moving and encouraging. To adhere to and put into practice "activities to support women," Shiseido carries out support activities aimed at helping to enrich the lifestyles of women throughout the world through our corporate initiatives. To ensure gender equality within the company, Shiseido considers the training of female employees to be essential. Therefore, we promote business operations based on key principles such as "promoting an affirmative action plan for realizing an organizational environment conducive to constantly nurturing and promoting the creation of female leaders. Based on the objective to nurture female employees, Shiseido aims for male and female employees to advance in their careers together with 1 Shiseido's Corporate Social Responsibility Back Issues 2010 balancing work with child rearing and nursing care instead of being barely being able to do so. We will also undertake our full efforts to advance as a company while improving our ability to propose new value for our customers. In terms of "addressing environmental issues," Shiseido established an environmental initiative in which all employees in the Shiseido Group participate worldwide called the Shiseido Earth Care Project with the aim of creating "a sustainable society in which people and the Earth coexist beautifully." In order to continuously promote new beauty while receiving the benefits of the various bounties of the Earth, this project is centered on the preservation of biodiversity and steadily promoting basic environmental activities that should be carried out as a social responsibility as a matter of course, including the reduction of CO2 emissions and resource conservation. Furthermore, Shiseido focuses on realizing "a new lifestyle that connects 'beauty' and 'eco-friendliness'" by strongly promoting environmental activities unique to Shiseido. From the perspective of striking a balance between strictly ensuring safety so that customers' can use our cosmetics with peace of mind and deeply caring for all life on earth, Shiseido has decided to eliminate animal testing conducted by the company for cosmetic product development by the end of March 2011. Looking to the future, Shiseido will promote further efforts for eliminating animal testing. In tandem, we will establish a platform for exchanging opinions with as many experts, academic institutions and animal welfare organizations as possible while also adhering to the latest EU regulations (EU' Cosmetic Directive). Recently, the global economy appears to be getting back on a recovery track; however, the future remains unclear. Many other problems have yet to be solved as well, including global warming, poverty and conflicts. Therefore, we must firmly unite to keep our customers, society and the earth beautiful and abundant, and in doing so, promote CSR activities based on Shiseido's Corporate Mission in which "we seek to identify new, richer sources of value and use them to create a beautiful lifestyle." This is our pledge and commitment to our customers throughout the world. June, 2010 Shinzo Maeda President & CEO Shiseido Company, Limited Copyright (C) 1995-2010 Shiseido Co., Ltd. All rights reserved.