CSR Communication Book 2017

Welcoming the Challenge of Helping to Build a Sustainable Global Society Cover story

Casio’s creativity goes deeper than the surface of things. New realizations and discoveries abound, if you just look from a different angle. View the binary digit “0” from the side, and you see a “1.” This illustrates how Casio leverages multiple perspectives to create new value. In June 2017, Casio Computer Co., Ltd. celebrated its 60th anniversary. For six decades, Casio has lived up to its corporate creed of “Creativity and Contribution” by giving the world products that offer entirely new uses and features that no has ever seen before. Simply put, Casio’s approach to product creation is “creating something from nothing.” Each year, Casio issues this CSR Communication Book to share about its unique efforts to fulfill social responsibilities in a way that embodies “Creativity and Contribution.” This fiscal 2018 edition takes a multi-angled look at the exciting new challenges Casio is embracing and is full of fresh new content. In the “Message from the President,” Kazuhiro Kashio describes how Casio continues to differentiate itself by finding original ways to meet the changing needs of society, thereby ensuring that its businesses always make a social contribution. “Creativity and Contribution” is the guidepost for everything Casio does. This creed has been practiced for as long as Casio has been in business, and it is the foundation for the company’s CSR efforts. The sections entitled “Social Trends and CSR Progress” and “Recent Social Trends and Casio Initiatives” look back on how Casio’s social responsibility initiatives have evolved with the times. Everyone at Casio practices the corporate creed of “Creativity and Contribution” in their own daily work. The Casio EX-Word electronic dictionary is used to illustrate how Casio people fulfill the creed. Next, the section entitled “‘Creativity and Contribution,’ Taken Personally” features Contents employees sharing about how they each interpret and practice the corporate creed. Of course, it is also vital to respond to public expectations regarding social responsibility. In the 02 Message from the President “Environmental Executive Message,” Makoto Kobayashi, Executive Officer, General Manager, CSR 04 Social Trends and CSR Progress Promotion Department, discusses Casio’s response to the Paris Agreement and the UN Sustainable 06 Recent Social Trends and Casio Initiatives Development Goals. Then, a special section summarizes a conversation with the head of Fujitsu’s CSR department. Fujitsu is an exemplary Japanese company that has maintained outstanding 08 Case Study: How Casio Achieves performance on international CSR norms. The conversation addresses the latest developments in “Creativity and Contribution” expectations regarding social responsibility for large corporations. Finally, sections entitled “A Visit 12 “Creativity and Contribution,” Taken Personally to a Stakeholder” and “Launch of the CSR Leader System” demonstrate how Casio is sharing about its approach to CSR with external stakeholders. 14 Environmental Executive Message We hope this book will give you even better insight into the corporate DNA that keeps Casio 16 CSR Conversation “creating something from nothing.” Learning from Model CSR Companies: Please also visit the Casio website for comprehensive information on the company’s CSR Fujitsu’s Global Approach to Social Responsibility activities, provided based on guidelines from the Global Reporting Initiative. 20 A Visit to a Stakeholder http://world.casio.com/csr/ 21 Launch of the CSR Leader System

CASIO CSR Communication Book 2017 01 Message from the President

Implementing “Creativity and Contribution”— Meeting Social Expectations by Creating Unique Casio Businesses

PresidentKazuhiro & COO Kashio

Creating Businesses Focused on “Creativity for Contribution” has become more Being Useful to People important to us than ever before. We seek to build “co-creator” relationships with end users by directly Casio Computer Co., Ltd. celebrated its 60th anniversary connecting with them to create new social value. in June 2017. Based on our corporate creed of “Creativity and Contribution,” we have achieved Revising the Charter of Creativity growth by developing many innovative products using for Casio the approach of “creating something from nothing.” Over the years, Casio has made people’s lives more As we celebrate our 60-year milestone, we are seriously comfortable and convenient. returning to Casio’s unique origins in “Creativity and In recent years, the environment has changed Contribution” and transforming our business structure dramatically. New value no longer stems from mere digi- for even greater advancement. talization or advanced functions. The era of “dominating Casio originality lies in our ability to discover the market by making superior products” is over. hidden needs, to bring people amazement and joy, Today, our goals are not just about developing and to create new cultural phenomena. We are also products. Instead, we set goals by asking how we can taking this chance to revise the Charter of Creativity for help people and contribute to the world through our Casio to better share Casio’s heritage company-wide products and services. We call this kotozukuri, a term and pass it down to the next generation. The revised that refers to the craftsmanship of systems for delivering charter will redefine our reason for being and where new experiences and intangible value. Consequently, we are heading. It will clarify Casio’s vision, desired

02 CASIO CSR Communication Book 2017 direction, and business domains. By digging even Emphasizing a Group-Wide Mission and by issuing integrated reports. After clarifying the com- deeper into “Creativity and Contribution,” we will Transforming the Business Structure munication objectives and target audiences, we will carry prepare to fully promote the spirit of Casio in and out effective disclosure of the appropriate information. outside of the company. We will be working hard to transform our business I am always asking that all employees heighten their structure to create new value that is useful to people. awareness that Casio’s future depends on them. Each Aligning Business Execution with For many years, Casio was like a collection of department has a role to play to fulfill the company’s Solving Social Issues independent divisions. The reality was that each vision and policies. With a shared vision of what we division operated its own business separately without a want Casio to be 10 or 20 years from now, we are When considering our future direction, we will sufficient understanding of where Casio was heading aiming to become a company that provides even more participate in efforts to solve global issues, such as the as a whole. In order to reinvent this silo organization, in value, through the full participation of our employees. Sustainable Development Goals (SDGs) adopted at February 2017 we created the Consumer Development Casio is facing the future as a unified team. the United Nations. We will use the 17 SDGs to make Headquarters, putting it over the camera, signage and our contribution targets even clearer from a global musical instrument businesses. By combining our various perspective. For example, our education business, which technologies and know-how, we can now generate helps optimize education systems, contributes to SDG 4 synergies, even in new genres. (quality education) and is also related to SDG 1 (no pov- We are also revising our evaluation system. While erty) and SDG 8 (decent work and economic growth). the performance of departments and individual teams The current objective of our education business is: and employees is important, there must first be a group- “Improving the academic ability of students in regions wide mission, so the growth of individual organizations where our business is operating.” In the case of scientific can contribute to the growth of the entire group. calculators, the goal is to enhance mathematical skills The same thing applies to CSR initiatives, which by having educational sites adopt Casio scientific calcu- also require a group-wide perspective. We will continue lators. If we can fulfill these objectives and contribute to focus on increasing awareness of the material issues in the target markets, Casio sales will naturally increase (significant CSR issues) we identified in fiscal 2017, as a result. As the world population continues to throughout the Group. grow, the potential market is vast. While applying the lessons learned from our successes, we will support the academic development of the leaders of tomorrow. Aiming to Create More Value In businesses other than education, as well, we will practice “Creativity for Contribution” with the SDGs in Casio values communication with stakeholders and is mind to simultaneously accomplish our business plan now looking at ways to further improve its corporate and help solve social issues. communications. We want to enhance ESG information

CASIO CSR Communication Book 2017 03 Casio’s CSR activities have evolved with social trends over the years. This section reviews that Social Trends and CSR Progress history, showing the increasing importance of management focused on social responsibility. s

Social Trends Casio Initiatives Social Trends

1990 Action Program to Arrest Global Warming established 1991 Casio Environmental Conservation Committee launched 2000 United Nations Global Compact initiated 1991 Act for Promoting the Utilization of Recycled Resources 1993 Casio Environmental Charter and Environmental Sustainability Reporting Guidelines issued by the Global takes effect Fundamental Policies established Reporting Initiative (GRI) Keidanren Global Environment Charter established 1997 Environmental activities reported on the Casio website Containers and Packaging Recycling Act established 1993 Basic Environment Act takes effect ISO 14001 certification acquired by Aichi Casio and 2001 Green Purchasing Act established 1994 United Nations Framework Convention on Climate Change Yamagata Casio Act on the Promotion of Effective Utilization of Resources, takes effect 1998 Casio Group Code of Conduct established the Waste Management and Public Cleansing Act, and 1996 ISO 14001 international environmental standard created ISO 14001 certification acquired by Kofu Casio, Kochi the Basic Act on Establishing a Sound Material-Cycle 1997 Kyoto Protocol adopted by the third session of the Casio, Casio Korea, and Casio Electromex (Mexico) Society established Conference of the Parties (COP3) 1999 Green Procurement Guidelines established 2002 World Summit on Sustainable Development held in 1998 Act on Rationalizing Energy Use revised Environmental Report first published Johannesburg Act on Promotion of Global Warming established First exhibit at Eco-Products Act concerning Pollutant Release and Transfer Register ISO 14001 certification acquired by Casio Electronics (PRTR Act) established 2003 WEEE and RoHS Directives take effect 2005 Kyoto Protocol takes effect CSR management reinforcement Environmental initiative Information disclosure 2006 JEITA issues Supply Chain CSR Deployment Guidebook

1990s: Establishing Environmental Management 2000s: Shifting to CSR Management Social Trends in the 1990s Casio Initiatives in the 1990s Social Trends in the 2000s The 1990s was a decade of growing public criticism of corporate Recognizing that the manufacturing industry had a major role to play In the 2000s, the CSR practices of Europe and North America gradually practices, with repeated corporate scandals in Japan. As a result, the in environmental conservation, Casio established its Environmental took root in Japan. Discussion grew on themes such as human Japan Business Federation established the Keidanren Charter for Good Conservation Committee in 1991 and began to pursue environmental rights, labor relations, society, and product liability, adding to the Corporate Behavior, and more and more large companies created their management. In 1993, the Casio Environmental Charter was environmental efforts that Japanese companies were already engaged own codes of conduct. As part of legal compliance efforts, Japanese established. This led to environmental activities across the Casio Group in. In addition, companies started to recognize the full range of corporations also began to use CSR terminology. relating to both products and production/business sites. When the stakeholders, and in the early 2000s, CSR reports began to be released Until this point, environmental efforts in Japan were mainly limited ISO 14001 standard was created in 1996, Casio also moved to obtain as part of stakeholder communication efforts. to controlling industrial pollution. In the 1990s, however, other issues certification for its business sites. Around 2003, a growing number of companies shifted to CSR emerged, such as depletion of the ozone layer, rainforest destruction, As a company with a global presence, Casio understands that it is management. More companies began to create CSR offices and and global warming. This was also an age when global environmental vital to comply with international norms as well as the applicable laws appoint officers in charge of CSR. These efforts took place in the problems became apparent. Also, with the creation of the ISO 14001 and regulations in each country and region. In 1998, the Casio Code context of management strategy, as an indispensable element for standard, many companies adopted environmental management of Ethics was created to ensure that all officers and employees act sustainable development of the company. practices, hoping to help foster a sustainable global environment. based on high ethical standards and sound judgement.

04 CASIO CSR Communication Book 2017 s s

Casio Initiatives Social Trends Casio Initiatives

2000 ISO 14001 certification acquired for production sites in Japan 2010 ISO 26000 standard created 2010 Corporate Report becomes Sustainability Report and four Casio Computer business sites 2013 G4 Sustainability Reporting Guidelines released Joined the United Nations Global Compact Environmental accounting introduced International Integrated Reporting Framework announced 2011 Casio Group Biodiversity Guidelines established Green Procurement Standards issued and business partner by the IIRC 2012 Analyzed current status for ISO 26000 briefing sessions begin 2014 Fifth Assessment Report released by the United Nations CSR Communication Book issued 2001 Casio Taiwan and Casio Software acquire ISO 14001 certification Intergovernmental Panel on Climate Change (IPCC) Replaced the Casio Environmental Vision with the Casio 2002 Casio Electronics (Shenzhen), Casio Electronics (Zhongshan), 2015 Sustainable Development Goals (SDGs) adopted at the UN Environmental Vision 2050, and the Casio Environmental and Casio Techno headquarters acquire ISO 14001 certification Japan’s Government Pension Investment Fund (GPIF) signs Declaration with the Casio Environmental Declaration 2020 2003 The Charter of Creativity for Casio established the Principles for Responsible Investment (PRI) 2014 Casio Group Basic Policy on Respect for Human Rights 2004 CSR Promotion Office and CSR Committee launched ISO 14001 standard revised established Environmental Report becomes Environmental Management Report Paris Agreement adopted Joined the Consortium for Sustainable Paper Use 2005 Environmental Management Report becomes the CSR Report 2016 GRI Standards released 2015 Casio Group Paper Procurement Policy established RoHS compliance achieved for all products sold in Europe CSR materiality studied 2006 CSR Report and Corporate Profile combined to create CSR Leader system established at Casio Computer Corporate Report 2016 Material issues identified 2009 Casio Environmental Charter becomes the Casio 2017 CSR Leader system expanded to group companies in Japan Environmental Vision, and the Basic Environmental Policy becomes the Casio Environmental Declaration

2010s: Integrating CSR into Management Strategy Casio Initiatives in the 2000s Social Trends in the 2010s Casio Initiatives in the 2010s Casio’s CSR management began with the establishment of the Charter In the 2010s, the attitude of external stakeholders towards companies Casio’s CSR management has also evolved in response to society’s grow- of Creativity for Casio in 2003. While considering three key CSR began to change dramatically. Movements boycotted the products ing expectations. In 2011, the company signed on to the United Nations aspects—economic, environmental, and social performance—and of companies that were not meeting their social responsibilities. Global Compact, a framework for realizing sustainable growth, and thinking about the type of management necessary to grow sustainably Companies are now being judged not just on the impact of their own started sharing information, exchanging opinions and collaborating with with society, Casio reviewed its corporate creed, “Creativity and activities, but on the impact of activities across their entire supply chain. other signatories. Casio re-analyzed its CSR management and strength- Contribution,” in light of the times. The result was summarized as In addition, there is renewed interest in socially responsible ened efforts to address the issues of human rights and fair business the Charter of Creativity for Casio. In 2004, Casio established its CSR investment, as investors look at social benefits while pursuing investment practices, utilizing the ISO 26000 social responsibility guidance standard. Promotion Office and CSR Committee. It started to analyze the current returns. The trend is to evaluate CSR activities in terms of environmental, In 2012, Casio issued its first CSR Communication Book. This book raises CSR situation and identify problems before working to raise awareness social, and governance (ESG) factors, and then utilize this information the awareness of employees and highlights points of contact with stake- within the company. In 2005, Casio identified its key stakeholder for investment decisions. Companies now must pursue CSR activities at a holders, and it is being used to accelerate CSR management emphasizing groups, and started issuing the CSR Report, which clearly described the level that matches the impact of their business activities on society. More communication with stakeholders. In 2016, Casio established a process group’s responsibilities to each stakeholder segment. and more companies are identifying their materiality (significant CSR for identifying materiality in dialogue with various stakeholders and issues), and emphasizing CSR in their management strategies. incorporating public expectations into its CSR management.

CASIO CSR Communication Book 2017 05 Initiative 1 Integrated Approach

Background the UN Principles for Responsible Investment (UNPRI). Lately, it has become vital for companies to determine This is a worldwide platform for investment based on which social issues are important for their management, environmental, social, and governance (ESG) information and what kind of future risks and opportunities they and was launched under an initiative of the United present. Companies must also determine what kind of Nations in 2006. In addition to traditional financial infor- Recent Social business models and governance systems are required to mation, signatory organizations are required to consider respond to these issues and how to create economic and ESG factors in the investment process. As a result, even Trends and social value over the medium to long term. This is called institutional investors who are entrusted with pension the integrated approach, and it has been emphasized in investments by the GPIF are required to undertake ESG corporate information disclosure in recent years. investment initiatives. Furthermore, companies that Casio Initiatives As part of this worldwide trend, in September 2015, disclose information to investors also need to report their Japan’s Government Pension Investment Fund (GPIF), corporate strategies, including ESG factors, along with their corporate value. Social expectations of corporate activities are which has 140 trillion yen in investment assets, signed continually changing along with societies themselves. In recent years, the focus has been Initiative 2 Strengthening Environmental Management Systems (EMS) on the integrated approach, strengthening environmental management systems (EMS), and Background reduce environmental impact via proper use of plan-do- contributing to the achievement of the SDGs. The Paris Agreement, an international framework to take check-act cycles. effect in 2020, was adopted at the 21st Conference of the Thus, it is now essential for companies to formulate Here is some background information on these Parties to the United Nations Framework Convention on appropriate plans and reliably achieve them in trends and Casio initiatives. Climate Change (COP 21), held in Paris in December 2015. accordance with international agreements such as the This is a legally binding international agreement like the Paris Agreement. Kyoto Protocol. It clearly sets out a long-term worldwide goal of achieving zero net greenhouse gas emissions from Casio Initiatives human activities by the second half of this century. Casio will contribute to the fulfillment of the Paris Just prior to this, ISO 14001, an international Agreement by aligning its greenhouse gas reduction tar- environmental management standard, was revised gets with the medium and long-term goals of the Japanese in September 2015. The major revisions included government. Specifically, based on its long-term environ- a new emphasis on improving the performance of mental management policy, the Casio Environmental Vision environmental activities, and a requirement to steadily 2050, the company has revised its long-term greenhouse

06 CASIO CSR Communication Book 2017 Initiative 3 Contributing to the Achievement of the SDGs

Casio Initiatives What Are the SDGs? There are high hopes for the SDGs as a tool to form a Like other companies, Casio has received a growing The UN Sustainable Development Summit was held at relationship between social issues and business objectives, number of inquiries for the disclosure of ESG information United Nations headquarters in September 2015. With as part of the integrated approach mentioned above. from institutional investors in recent years. In response the participation of the leaders of over 150 Member to this, Casio is revising its corporate communications States, the 2030 Agenda for Sustainable Development Casio Initiatives and is working to clarify economic and social value in its was unanimously adopted. This worldwide agenda sets The SDGs are helping Casio to clarify targets for medium to long-term growth scenarios. out 17 Sustainable Development Goals (SDGs), including its social contribution activities. For example, the Looking to issue integrated reports in the future, 169 specific targets. company’s educational business goals can be linked Casio intends to further enhance its disclosure of ESG The SDGs set out the global objectives and priorities with the international movement to solve educational information. After clarifying the objectives and audiences to be achieved by the year 2030. They highlight specific problems. Going forward, Casio will look at how its for its various communications, the company will opportunities to put the world on a sustainable track, in specific business activities relate to the SDGs, in order promote effective information disclosure in response to areas including poverty, hunger, energy, climate change, to tie them in with its business plans. The company will public expectations. and peaceful societies. Companies in particular are also clarify the opportunities and responsibilities that the expected to actively strive for sustainability as part of SDGs represent, and all employees will take the needed corporate strategy. next steps. Casio intends to head towards integrated Strengthening Environmental Management Systems (EMS) Corporate embrace of the SDGs is moving forward management that can achieve business plans while also rapidly, and more companies are checking their business helping to resolve social issues. The aim is to further activities against the 169 targets while prioritizing issues. improve corporate value. gas reduction target. Casio’s new target calls for an 80% emissions reduction by fiscal 2050 compared with fiscal 2014. Instead of comparing results with fiscal 2006 levels, the company has decided to set significantly higher targets by changing the base year to fiscal 2014, when emissions were lower than in fiscal 2005. In compliance with the new revised ISO 14001 stan- dard, Casio also promoted substantial reform of its EMS. In order to carry out environmental activities based on materiality, the company has established three committees, each to address one of its material issues: realizing a low‑carbon society, building a recycling society, and living in harmony with nature. The aim is to strengthen company efforts to improve performance in these areas.

CASIO CSR Communication Book 2017 07 Case Study: How Casio Achieves “Creativity and Contribution”

Sharing the joy of learning by providing opportunities to acquire knowledge and enjoy learning: New creativity from Casio’s electronic dictionary business

Educational products are now a mainstay business for Casio. What value is Casio trying to offer to society in areas such as electronic dictionaries and language learning devices? Last year, the EX-word line of electronic dictionaries celebrated its 20th anniversary. Here, we reflect on its history and envision the future of its contributions to education.

08 CASIO CSR Communication Book 2017 Helping People Worldwide to Acquire electronic dictionaries, how were they being used, and Knowledge and Enjoy Learning for what purposes?” High school students need something that makes In 1996, Casio released the EX-word, its first electronic it easy to study for exams. University students want dictionary. Over the last 20 years, Jun Oshima has over- something that is easy to carry to lectures, whereas seen the launch of EX-word products as a member of the elementary school students are interested in something Product Planning Department, Consumer & Educational that makes learning fun. We had to get clear about each Solution (CES) Product Division. We talked with him about target customer segment, and then modify each product EX-word RISE, a specialized digital the history of customer development for this product. and sales approach to fit it. Casio’s electronic dictionaries device for learning English conversation “At that time, many other manufacturers had really began to move when the development and sales released electronic dictionaries, so the EX-word was a teams joined forces to drive the business. words; and (3) have more chances to study thanks to the latecomer to the market. On the other hand, no one It was especially hard to develop products for high better portability.” had really clarified the key questions: who was using school students, who were the largest market for paper Of course, the ability to promote the product with dictionaries. Oshima explained, “Even if we targeted our confidence came from the team’s conviction that it promotions directly to high school students, the effect would truly be useful in helping students to learn. In would be minimal if the product could not also be used order to choose the paper dictionary to provide the at school. We realized we should first inform teachers content for the device, the developers conducted a about the benefits of the product, so that they could rec- survey to find out which schools used dictionaries by ommend it to their students.” One by one, Casio sales which publishers and how often they were used. Even staff visited about 5,000 high schools all over Japan. This after the initial product launch, the team continued to was the start of a steadfast effort to carefully explain the utilize classroom feedback gathered by sales staff in features of the electronic dictionary. product development. “At that time, teachers thought looking English “For example, during our third year serving the words up in a paper dictionary helped students to learn high school market, we received feedback that the new vocabulary. So, it was not convincing enough to device broke too often. This was because many high simply tell teachers that the entire content of a paper school students did not carefully handle the electronic dictionary was contained in the device. We needed to dictionary as a precision instrument, for example, or they thoroughly communicate the three advantages of the handled it more roughly than we had assumed. In order Jun Oshima digital format, which allowed users to: (1) find words to regain customer trust, we quickly developed a more Manager, Product Planning Section-2, Product Planning Department, Consumer & Education Solution Product Division more quickly; (2) listen to native pronunciation of English robust electronic dictionary, and since then resistance to

CASIO CSR Communication Book 2017 09 Relationship with SDGs Casio aims to help eliminate disparities in education worldwide by exercising creativity in its educational products business. This coincides with UN Sustainable Development Goal 4, which calls for ensuring inclusive and equitable quality education for all.

breakage even if dropped from a desk has become the dictionaries for elementary and junior high school stu- speaking, the likes of which has never been seen before. standard specification for a Casio electronic dictionary.” dents, as well as for senior citizens, we went on to create Yoshifumi Yasuda, who is in charge of sales of products The developers listened carefully to the voice of the products including dictionaries not only for English, but such as electronic dictionaries, explained its purpose. customer and improved the product in ways that resolved for various other languages such as Chinese, German, “Due to the increase in foreign visitors to Japan, the the concerns and dissatisfaction. By repeating this and French. We even made specialist dictionaries for need for English conversation skills is rapidly increasing process, understanding of the convenience of electronic medical, nursing, and other terminology. In everything among those involved in customer service, but not all dictionaries gradually grew, even among high school we have done, our goal has been to provide opportuni- of these jobs require a high score on a global test like teachers, who had been strongly attached to paper dic- ties to acquire knowledge and enjoy learning to as many TOEIC. Still, there was no alternative testing system to tionaries. Today, it is estimated that about 60% of high people as possible.” help service industry employees with their English learn- school students across Japan use electronic dictionaries. ing goals. That’s why I thought we should create our Oshima explained, “I believe that this popularization Creating a New Way of Learning a own test.” is a direct result of our team getting out there and Foreign Language The first exam was held in March 2017. pounding the pavement. In addition to developing Approximately 50 companies agreed to lend their names Casio facilitates the joy of learning. This goes beyond to the project, showing approval and support. Yasuda the enjoyment of acquiring knowledge with an said he feels strongly that there is a real emerging need electronic dictionary. for this kind of testing. The palm-sized English conversation learning device, “Regarding EX-word RISE, other companies are EX-word RISE, was released in 2016. It makes the most beginning to develop competing products. However, of Casio expertise in electronic dictionary development. we are about more than just fighting for market share; Oshima recalled, “It was developed for customers who sometimes we like to cooperate with other enterprises to want to actually converse in English, especially business expand the market for English conversation products.” people. With the ability to speak English becoming more Through his work, Yasuda has come to realize and more important in Japan, we wanted to help business that learning is one of the basic motivations of human people with their quest to master English conversation.” beings. By helping to create an electronic dictionary or In 2017, Casio initiated an English Proficiency an English conversation learning device that can be kept Testing Service in collaboration with a publisher and a handy all the time, Yasuda knows that he is providing newspaper company. The test is designed to determine people with daily opportunities to enjoy learning. the ability of people to provide customer service to “I also want to provide total support for efficient Yoshifumi Yasuda foreign visitors in Japan. It is a unique English proficiency learning by helping to create new learning styles based Manager, Planning Section 1, Consumer & Educational Solution Products Marketing Dept. Global Strategic Marketing Division, Global Marketing Headquarters test with practical content that focuses on listening and on audio and visual information, going beyond the

10 CASIO CSR Communication Book 2017 Case Study: How Casio Achieves “Creativity and Contribution”

into a school, or landing a job with a certain company. To do so, we will carefully consider the socioeconomic conditions in each country and capitalize on Japan’s pos- itive image around the world to promote our products.” Oshima, the creator of EX-word, added, “Educational inequality is a major cause of poverty worldwide. This problem cannot be solved in one quick step, but we want to start doing what we can.” Casio’s corporate creed, “Creativity and Contribution,” means providing diverse kinds of value to the world by cre- Past electronic dictionaries and language learning devices ating products that never existed before. Education is the conventional reading and writing methods for learning Outside Japan, Casio has been focused mainly on key to the future, and Casio aims to provide new products English. In addition to providing hardware and content China in its electronic dictionary business. Going forward, that move the world forward. such as electronic dictionaries and learning devices, we however, the plan is to expand the target market to learners are thinking about how we can suggest new ways to use of Japanese not only in China, but also in Southeast Asia. these products—in other words, whole new methods of “The Japanese language is an important strength for learning and teaching.” Japanese companies in the global market. More and more Yasuda clearly has his sights set on the future. people in other parts of the world covet jobs in Japan related to healthcare, such as a nurse or caregiver. Their Helping to Make Dreams Come True stepping stone is acquiring Japanese proficiency. Casio for Those Who Want to Learn Japanese wants to help them learn Japanese by making Japanese learning devices available in their local markets.” Aiming to create opportunities for people everywhere There is work to do to ascertain market needs. to enjoy learning every day, Casio is working to increase Products, sales channels, and markets all need to be built sales of electronic dictionaries outside Japan. from scratch. These are considerable obstacles, but the “Sales of electronic dictionaries outside Japan currently team is determined to see it through. account for only around 10% of our total,” said Tomoaki Satoh explained, “In certain countries, there are Satoh, General Manager, Product Planning Department, many people who would like to learn Japanese but can- Tomoaki Satoh CES Product Division. “The way I see it, that means there is not afford to go to school. We want to provide products General Manager, Product Planning Department, Consumer & Education Solution great potential for sales growth outside Japan.” that help make their dreams come true—like getting Product Division

CASIO CSR Communication Book 2017 11 The driving force of the Casio Group is our team of 12,000 employees worldwide. Casio employees practice social responsibility “Creativity and Contribution,” by applying the corporate creed, “Creativity and Contribution,” to the work they do every day. Here are the stories of employees Taken Personally from different departments who strive to fulfill the corporate creed from their vantage point, through their own work.

Prioritizing Creativity and Promoting Product Appeal to Consumers

As leader of the timepiece team in the Publicity Production Group, I devise com- in a simple and direct way, we set out to create a thoroughly realistic-looking munication strategies, while planning and implementing promotional activities gorilla. It was really difficult to choose the best gorilla representation, but for all Casio watch brands. The scope of my projects varies from new product the promotion was really well received, and we won the top prize at the 61st exhibits and TV commercial production, to management of the company’s offi- President’s Awards. cial social media accounts. By using expressions that maximize product appeal, In my own work, I see the “creativity” described in the first chapter of the I aim to create publicity that will grab the attention of consumers and ignite a Charter of Creativity for Casio as the foundation of Casio. All of our corporate passion to buy the product or share information about it. It is very rewarding values arise from this creativity. I think this leads to ensuring that our products when my efforts trigger consumer activity—when the sales of a publicized meet universal needs, and providing customers with delight, happiness, and Mika Tachibana product go up, or when discussion is generated in the media or on social media. pleasure. I always strive to be original in my daily work, and I intend to keep Manager, Advertising Planning Group In fiscal 2017, the G-SHOCK gorilla promotional video generated practicing “Creativity and Contribution.” Advertising Department shockwaves in the market. In order to convey the toughness of the product Corporate Communication Division

Protecting Casio’s Intellectual Property and Supporting Secure Business Activities

In the field of legal affairs and intellectual property, it is my job to protect in each country, as well as law revisions and cases related to patents. While Casio’s business activities in terms of patent rights. A patent is a powerful a wide range of knowledge is required, sometimes the best solution does not right that enables a firm to seek compensation for damages and a production involve a textbook response based on past cases. “Creativity and Contribution” injunction against anyone who infringes the patent. Even today there is a lot of is the guide for me to determine the essence of a problem, and then to make patent litigation in countries around the world. When Casio has to take steps the proper use of my knowledge and experience, in order to find the best to protect its rights, we work to resolve the case promptly so as to minimize solution for each particular case. any effects on the business. We also support Casio’s business by licensing My goal is to become a specialist in the legal affairs and intellectual patents to other companies and effectively utilizing patents to resolve issues property field by acquiring even more technical knowledge and studying Tintin Men with other companies. interpretations of patent rights. In addition to passively protecting Casio’s IP Licensing Section IP Legal and Licensing Department The key is responding promptly when problems occur. By continually products and brands from business risks, I would like to take on the challenge of Legal & Intellectual Property Division gathering information, I constantly monitor trends concerning patent litigation contributing more proactively to the security of Casio’s business activities.

12 CASIO CSR Communication Book 2017 Creating New Value for Casio by Effectively Using IT

The Information Technology & Engineering Department is responsible for The demand for data utilization will increase further in the future. Our discovering operational problems faced by development, production, sales, operational systems create huge amounts of data every day. But the data has service, and back office departments, etc., and solving and improving them no value if it is not utilized. Our important missions include transforming data through the effective use of IT. Currently, I am mainly in charge of building into very useful information, and providing mechanisms for information sharing, accounting-related business systems, and I am working on projects in planning, analysis, planning and decision making. In this way, we can contribute to the requirement definition, system development, and introduction. Since Casio’s development of new markets and the expansion of existing business. business environment is continually changing, we are striving to create opportu- I am delighted when I get feedback from users of a system that I have nities to rethink the way operations are currently done. While considering things been involved with. I am gratified when they say that the operational speed has Momoko Choka with the user department, such as whether the original purpose of an operation improved or they have been able to get the data they need. By cooperating with Strategic Accounting Group, Information Technology & Engineering is being fulfilled properly, or whether an administrative task is taking too much user departments, I will continue to promote “Creativity and Contribution” as I Department time, we are utilizing IT to make improvements. create systems that make new methods and value possible.

Creating Environments That Allow Casio to Continue Innovating in the Industry

Since joining Casio, I have been involved in various operations such as European cases with the Human Resources Department at the head office in organizational personnel, recruitment, and system planning as a member of the Japan, and I am facilitating discussions to help resolve various personnel issues. Human Resources Department. In order to maintain an awareness of what Casio I think the universal goal for human resources staff at the Casio Group is Group employees are thinking, both in Japan and abroad, we emphasize open to build a framework that enables employees to demonstrate their creativity communication and seek to listen to everyone equally. Currently I am seconded and to be able to fulfill “Creativity and Contribution” with professionalism and to Casio France. I happen to be the first member of the Human Resources enjoyment. We want to expand employee discretion and support the creation of Department to be posted outside Japan. My current job involves a pan-European environments that will allow Casio to continue freely innovating in the industry personnel project and administration in France. When I first arrived here, I worried with bold ideas. I strive to fully understand the motivations for group employees Aki Makishima about my position—how I should communicate with the local staff. Now, though, everywhere, while acquiring human resource knowledge and expertise from all Project Manager, Management Division I find it very rewarding to serve as a bridge between the local staff in France, over the world. I believe this will help us to create human resource systems that Casio France S. A. the European headquarters, and the Japanese headquarters. My role is to share leverage Casio uniqueness.

CASIO CSR Communication Book 2017 13 Environmental Executive Message

Fulfilling Social Responsibilities as a Leading Environmental Company Makoto Kobayashi Executive Officer, General Manager, CSR Promotion Department

Reviewing Greenhouse Gas Reduction a real challenge by incorporating strategic environmental efforts Efforts and Setting Even Higher Targets into business management.

In February 2017, we reviewed our long-term greenhouse Promoting Environmental Activities gas reduction targets based on the long-term environmental Linked to Internationally Agreed Goals management policy, Casio Environmental Vision 2050. A new target was set for an 80% emissions reduction by fiscal 2051, Since Casio is a company actively pursuing global growth, compared with fiscal 2014. By changing the base year from fis- we consider how our environmental efforts are related to cal 2006 to fiscal 2014 (when emissions were below the fiscal international agreements: the Sustainable Development Goals 2006 level), in effect we have set significantly higher targets. (SDGs) and the Paris Agreement. One of the major aims of the We also updated our medium-term targets in accordance 2015 Paris Agreement is keeping a global temperature rise this with this change. By fiscal 2017, we had already mostly century well below 2 degrees Celsius above pre-industrial levels. achieved our goals of a 30% emissions reduction by fiscal In light of this, the Japanese government adjusted its goal for 2021 compared with fiscal 2006, as set out in the Casio reducing greenhouse gas emissions to 26% by fiscal 2031 Environmental Declaration 2020. So we set a much higher compared with fiscal 2014. Casio decided to align its targets emissions reduction target of 26% by fiscal 2031 compared with this national goal. with fiscal 2014. We know that it is crucial to link Casio’s material issues The new targets are challenging ones that cannot be with the 17 SDGs. Casio’s three material environmental goals attained merely by extending our previous efforts. In addition are realizing a low‑carbon society, building a recycling society, to manufacturing processes, we have to revise the distribution and living in harmony with nature. These objectives are closely of products, the way business sites work, and how employees related to SDGs 6, 7, 12, 13, 14 and 15, namely, clean water work. We have basically pledged ourselves to dramatic changes. and sanitation, affordable and clean energy, responsible This latest target revision is a demonstration of Casio’s consumption and production, climate action, life below water, determination as a leading environmental company to take on and life on land, respectively. It is vital that we always stay

14 CASIO CSR Communication Book 2017 aware of the global environmental challenges that Casio needs environmental action based on these material issues. We link the meet our standards as Casio Green Star Products and Casio to help solve. ISO 14001 system directly to the activities of these committees. Super Green Star Products, we are strengthen connections with In these reforms, we also reviewed department-based customers in order to show users the value they can expect Strengthening Group-Wide Initiatives under initiatives, which tend to focus on a micro level, and established from these Casio-certified products. a New Environmental Management System a system that effectively manages initiatives across the entire Under living in harmony with nature, we are taking into Casio Group. In September 2015, ISO 14001:2015 came consideration direct and indirect impacts throughout the value In fiscal 2017, Casio carried out a substantial reform of its envi- out. To meet its standards, which place greater emphasis chain, based on our biodiversity guidelines. We are now doing ronmental management system (EMS) in order to focus on three on performance, Casio is working to raise its environmental environmental impact assessments for each business site, material environmental issues within a group-wide framework. management to a completely new level. With our new EMS, put starting in Japan, and we are accelerating our efforts in areas We had been using the ISO 14001 environmental into operation in fiscal 2017, the entire Group is working as one where our response has been delayed. management system as a tool for environmental management to improve performance. for some time. Now, Casio has reorganized its system to enable Helping to Build a Sustainable World by joint acquisition of ISO 14001 certification by our three main Raising the Awareness of Every Employee sites: the head office, Hamura R&D Center, and Hachioji R&D Working Steadily on Material Issues Center, which had each been separately certified before. In Based on our restructured EMS, we are now pressing forward addition, we have established three issue-specific committees, We are now making steady progress by setting long-term together as a group to tackle our material issues and produce tasked with realizing a low‑carbon society, building a recycling objectives for each of the three issues that are material to Casio: results. The key to success is that each employee understands society, and living in harmony with nature, respectively, by taking realizing a low‑carbon society, building a recycling society, and why these issues are important and the course of action Casio living in harmony with nature. We are formulating goals and key needs to take. Material environmental goals performance indicators (KPIs) with a clear timeline. While serving as a roadmap for the entire world, the 17 As part of our goal to help realize a low‑carbon society, SDGs can also be used to foster new awareness within Casio. Casio will further enhance its strengths in making products with We must ensure that every employee sees the SDGs related to Building a energy-saving performance, aiming to further differentiate Casio worldwide energy and environmental issues as issues vitally recycling society from other companies. To reduce greenhouse gas emissions in connected to their own work, and fully understands that their manufacturing and logistics processes, we have introduced an efforts to address our material issues will also contribute to energy conservation diagnosis process at sites in Japan. the SDGs. As we work to build a recycling society, we are targeting Casio’s new efforts under this new framework have only resource conservation and recycling across the entire product just begun. Our future activities will depend on our ability to

Realizing a low- Living in harmony lifecycle, not just at Casio, but also at suppliers. This is especially make the new system function properly and drive performance. carbon society with nature important for Casio, which has minimal involvement in resource By taking strategic action from a group-wide perspective, we input into the manufacturing process due to the characteristics will steadily work to help build a sustainable world. of its business. While continuing to develop eco-products that

CASIO CSR Communication Book 2017 15 CSR Conversation

Establishing the Fujitsu Way and Fostering Employee Understanding

Kimura: Please tell us how the Fujitsu Way was established. Fujisaki: The first edition of the Fujitsu Way was established in 2002, when the term “CSR” was just becoming popular. Prior to that, we had a company policy, “Reliability and Creativity,” that stood for offering outstanding technology to customers who put their trust in us. We decided to take the opportunity to integrate documents such as our Corporate Vision and Corporate Values, since we wanted to preserve these original concepts. Kimura: I feel that the key phrase, “contribute to the Learning from Model CSR Companies creation of a networked society that is rewarding and secure,” in your Corporate Vision is unique to Fujitsu. Fujitsu’s Global Approach to Social Responsibility Fujisaki: I agree. Of course, the core purpose of our business is to provide value to our customers through In June 2017, Sogo Fujisaki, Senior Director, CSR Division, Fujitsu Limited, visited Casio networks using ICT. Many of our customers are social Computer Co., Ltd., to talk with us about CSR. With 160,000 employees worldwide, Fujitsu is infrastructure administrators such as government one of Japan’s leading electronics companies and ICT vendors, and it is known for its advanced agencies, hospitals, and financial institutions, so we have CSR activities. Noriaki Kimura, Manager, CSR Promotion Office, talked with Mr. Fujisaki about a strong commitment to providing ever-better products Fujitsu’s initiatives. He asked about the Fujitsu Way, the corporate philosophy that supports to them. Fujitsu’s global approach to social responsibility, and about what Fujitsu is doing to help achieve Kimura: I know the Fujitsu Way has been translated into the UN Sustainable Development Goals (SDGs). multiple languages. I’m wondering what other methods you have used to ensure employee understanding.

Sogo Fujisaki Senior Director, CSR Division, Fujitsu Limited (right) Fujisaki: There are several levels of employee understand- Noriaki Kimura Manager, CSR Promotion Office, CSR Promotion Department, Casio Computer Co., Ltd. (left) ing. In the initial stage of introducing the Fujitsu Way,

16 CASIO CSR Communication Book 2017 Learning from Model CSR Companies: Fujitsu’s Global Approach to Social Responsibility

the main measures involved preparing posters and small the Code of Conduct, and our CSR Division is in charge governance, as required to satisfy global norms, such cards, and conducting e-learning. However, in terms of of areas related to the Corporate Values. The allocation as ISO 26000 and the Electronic Industry Citizenship employee understanding on the practical level, we are still of roles fell into place naturally. In addition, there is a Coalition (EICC) Code of Conduct, are gradually growing trying out various approaches. The suitable approaches Fujitsu Way Promotion Committee, in which managing in importance. On the other hand, while the younger vary by country, and sometimes there are challenges. directors and above participate. This committee reviews generation’s CSR awareness is very high, we are still Kimura: On the executive level, was a consensus the content of the philosophy three times a year. figuring out how to foster bottom-up activities and quickly reached on establishing the Fujitsu Way as the Kimura: You also have an organization called the CSR encourage their participation. Combining both top- foundation of Fujitsu’s management? Global Community, right? down and bottom-up activities is a serious challenge. We Fujisaki: Yes, that went quite smoothly. I think the Fujisaki: We renamed the CSR Promotion Leaders, who would like to learn from Casio’s efforts in this respect. top management quickly understood that the values had been appointed at sites in and outside Japan, as part represented by the Fujitsu Way were very important and of an effort to give them a more practical role. One leader needed to be properly shared. from each site or department and persons at a general Understanding the SDGs Kimura: Did your CSR Division play a central role during manager level position participate in the Community, its establishment? which aims to promote individual measures in collabora- Kimura: I’d like to talk about the Sustainable Fujisaki: Because the CSR Division did not exist at the tion among relevant departments. In the Community, they Development Goals (SDGs). Since being adopted at time, this work was done across divisions with the share best practices within their organizations. the United Nations in 2015, they have rapidly become involvement of the human resources and legal depart- Kimura: I see. As a global initiative, Casio has been a common reference point worldwide. How is Fujitsu ments. So, nobody felt that it was a decision made in holding CSR Leader Meetings for about a year and a tackling the SDGs? just one part of the company. half, and we would like to extend this measure to group Fujisaki: We are promoting both top-down and Kimura: That probably made value sharing a smooth companies in and outside Japan as well. The meetings bottom-up efforts related to the SDGs. One example process at Fujitsu. Which department was put in charge provide intensive training for CSR Leaders, who then is our executive-level round-table discussions and of promotional activities, such as material translation and return and share new insights with their respective forums on how Fujitsu should position the SDGs as key poster creation? organizations. What do you think about this kind of management objectives. The other day we invited guests Fujisaki: That was performed by the Fujitsu Way Unit, bottom-up approach? from the United Nations Development Programme and which was created at the same time. However, the Fujitsu Fujisaki: I think it is very important, and this is a focus the World Economic Forum to our Fujitsu symposium to Way contains so many elements that it cannot be pro- for us, too. So far we have been promoting awareness discuss the topic of how companies should help achieve moted by one department alone. For example, the legal of the Fujitsu Way through efforts such as posters and the SDGs by 2030. One key point raised was the need to and compliance departments are largely responsible for workshops. However, measures relating to vertical scale up problem-solving efforts. Rather than just being

CASIO CSR Communication Book 2017 17 CSR Conversation

satisfied that the company is performing some beneficial a “common reference point” like that provided by the communities) is also related to our work on disaster activities, we should identify critical global problems SDGs is very important. prevention, transportation optimization, and smart city that need to be addressed, in accordance with the Kimura: How about your bottom-up efforts? development. Those are probably the main priorities for scale of the company and the expectations of society. Fujisaki: At present, we are working together with us. We’d like to issue a clear statement about this in the Especially in the case of Fujitsu, we are transitioning our environmental headquarters and others. As part of very near future. from a business that creates and provides products, to a the environmental management system, we are asking Kimura: Is this a statement of how your company will business that helps solve problems by providing services. each division to list initiatives that can contribute to promote SDG initiatives? When thinking about what issues to address, I felt that the SDGs, and we are advancing internal promotional Fujisaki: It will be a definition of how Fujitsu under- activities with the marketing headquarters. Workshops stands the SDGs and embraces their importance. Within are also being held for sales, system engineering, and the company, more and more departments are starting other departments. to talk about the SDGs by linking them with their busi- Kimura: There are 17 SDGs, as you know. Are any of nesses. This is the first step, recognizing that issues we them a particular priority for Fujitsu? thought were other people’s problems are actually also Fujisaki: The goals we should be aiming for are the our own. In some cases, however, the process gets stuck ones that best match our interests and capacities as at this stage, and the SDGs become just a PR tool. If you well as society’s expectations of us. So, an example with just utilize the SDG wording, but do not connect it with immediacy for us is the food-related goals. Currently the organization’s self-transformation, then it becomes a our Akisai Food and Agriculture Cloud service is used meaningless arrangement of the latest jargon. I think a by about 350 agricultural providers, and there may be statement is necessary to call attention to this point. other contributions we can make on the distribution Kimura: It seems that recognition of the SDGs is still low. side to eliminate food waste. Based on this, we want Have you made any efforts to improve that at Fujitsu? to contribute to SDG 2 (zero hunger), as well as SDG 3 Fujisaki: We address the SDGs at workshops and (good health and well-being). We now have a network in-house lectures, in addition to the executive-level with about 7,000 medical institutions and nursing round-table discussions I mentioned earlier. Various caregivers, so I think that there is something we can do elements need to come together for employees to using that. Then there is SDG 9 (industry, innovation thoroughly understand that the SDGs will actually and infrastructure), which is the work we are doing become a part of their business activities; otherwise it is in our main business. SDG 11 (sustainable cities and impossible to generate momentum. This is why we want

18 CASIO CSR Communication Book 2017 Learning from Model CSR Companies: Fujitsu’s Global Approach to Social Responsibility

understand the need for change and then increase what Translating Global Norms for Internal they can do about it. It took quite a while for us to get Stakeholders integrated reporting going, but it seems the turning Kimura: You have been preparing integrated reports point came when the IR team realized that integrating since 2015. Did you experience any internal difficulties in CSR elements into the annual report was also useful for the transition to integrated reporting? their own work. Fujisaki: Four or five years ago when we first started Kimura: That is a very helpful story, since we are now con- talking about adopting integrated reports, the IR team sidering integrated reporting at Casio. Finally, as someone remarked that it wasn’t necessary as investors never ask looking at Casio’s CSR activities from the outside, could about non-financial information. you share with us your opinions and expectations? Kimura: How did you persuade them? Fujisaki: I think it goes without saying that Casio has Fujisaki: The opportunity for me to press for integrated a very strong track-record in terms of activities that reporting at Fujitsu was the International Integrated link its products with society based on “Creativity and Reporting Council (IIRC); we are a member of its busi- Contribution.” I’d like to hear more detail about this. If I ness network. It was not an idea that I came up with on had to say something, I’d say that, since the Casio brand my own. I initially told others at Fujitsu that integrated is known worldwide and you have a core strength in reporting was becoming commonplace internationally, devices, I think Casio could collaborate more with com- and if we didn’t do it, external stakeholders would criti- panies from different industries and with UN agencies cize us, and there would be risks involved. So I convinced to widely publicize the various activities that you already them that we had better consider it. do. A host of new possibilities could be opened up by Kimura: Is it the role of the CSR department to combining your strengths with the different strengths of to incorporate SDG elements into our management pol- “translate” and convey such external norms to those other companies and organizations. icy. Even at the round-table discussion with our outside inside the company? Kimura: Thank you for taking time to talk with me directors held last year, one of them made a very critical Fujisaki: You may be right. After all, when faced with today. This was a very valuable experience. comment, saying he could not see the overall strategic something they do not understand or they cannot do, picture concerning the SDG initiative. With that in mind, people tend to not want to do it or look at it again, I think awareness among top management is increasing especially when there is both lack of understanding regarding the need to explain our objectives properly. and capacity. I think it is important to first help people

CASIO CSR Communication Book 2017 19 Stakeholder Voice A Visit to a Stakeholder

ROHM Co., Ltd. supplies low-power LSIs and dis- watch market, you adopted our technically advanced CMOS LSIs we need to take on the challenge as a company, as it will surely crete circuits to Casio. A dedicated sales section for the Casiotron watch, and this circuit is now used in most of benefit us in the future. in ROHM’s West Tokyo Sales Division handles your products. A now-retired Casio employee once told me about a time all the business with Casio. Kenji Muramatsu Kouda: What’s your impression of Casio? when a new LSI needed to be developed. After other suppliers leads this section, and Tsuyoshi Kouda of the Muramatsu: Casio is a company that really values its business refused to develop it, our employees at the time said that it was Purchase Planning Section in Casio’s Purchasing partners. We are grateful that your employees always appreciate difficult, but they would give it a try. Unfortunately however, they Department went to have a chat with him. our point of view as a supplier and act accordingly. were not successful. Even though their attempt failed that time, Kouda: Casio strives to take care of its business partners, and we ROHM eventually achieved the requested specs. The retiree told me Impressions of Casio are equal partners. his opinion of ROHM was greatly enhanced by that approach. Kouda: I think Casio began to work with ROHM in the early 1970s. Muramatsu: Also, I think Casio is a company that works well Kouda: It is truly a relationship where our companies grow Muramatsu: Initially, you purchased our reed switches for your as an organization. Sometimes important work will be given to together. ROHM is now in the top tier of low-power LSI makers. calculator input keys at the time when we were Oki Semiconductor, a young employee in the development or materials departments Muramatsu: This is the result of our relationship with Casio. the predecessor of Lapis Semiconductor.* After Casio entered the early on. Your corporate culture allows younger team members The president of Lapis Semiconductor always says that ROHM was to experience failures and successes, and I think this helps you raised by Casio. develop professional employees. Kouda: I agree. Even G-SHOCK went through a lot of trial and Expectations for Casio error in development. Casio has a very healthy appreciation of the Muramatsu: Casio has produced many hit products over the usefulness of failure. years, so I would like you to continue making hit products. Kouda: That is our No. 1 priority. Taking on Difficult Challenges and Muramatsu: ROHM has a 40-year history with Casio, and we Growing Together hope to continue working with you to create new technologies Kouda: I imagine that it can sometimes be hard for you to meet and electronic components. Casio’s needs. Kouda: By fostering mutual prosperity, we want to keep working Muramatsu: As a company competing in the consumer market, together to create great products.

Right: Kenji Muramatsu, Manager, CASIO Sales Section, West Tokyo Sales Division, Casio always brings us extremely difficult challenges. Almost every East Japan Sales Headquarters, ROHM Co., Ltd. time someone in our development team says, “It can’t be done.” It * This ROHM group company provides logic, memory, and driver LSIs. It has Left: Tsuyoshi Kouda, Purchase Planning Section, Purchasing Department, unique technologies such as low power consumption, high-frequency, and Supply Chain Control Unit, Production Headquarters, Casio Computer Co., Ltd. is very rewarding for me, though, to persuade our employees that mixed analog/digital IC technologies.

20 CASIO CSR Communication Book 2017 Launch of the CSR Leader System VOICE In fiscal 2016, Casio launched a CSR Leader System with the aim of enhancing awareness of CSR within the Feedback from a CSR Leader company. The system trains key people who are responsible for strengthening the understanding of Casio’s Kazuo Tachikawa social responsibilities in each department. Employees are selected in each department to become the key Strategy Management Group Corporate Strategy & CSR human resources in their respective organizations, and they are given priority CSR education. Currently, Management Department about 100 CSR Leaders have been appointed within Casio Computer Co., Ltd. Going forward, leaders will When I became a CSR Leader, I thought CSR would be a completely also be chosen at group companies in and outside Japan to strengthen Casio’s global CSR infrastructure. new job, as it didn’t seem to have any direct connection to my work. After participating in six CSR Leader meetings, though, I now see Main Activities that CSR efforts are directly linked to what we do, and that Casio The main activities of the CSR Leaders include participat- on company-wide policy to their departments. At CSR has clear responsibilities as a corporate member of society. This means it is essential for me as a Casio employee to come up with ing in CSR Leader Meetings held each quarter, sharing Leader Meetings in fiscal 2017, experts gave lectures and my own ways to promote CSR activities. Previously, my outlook and promoting understanding of CSR case studies in workshops on the following topics, and steps were then only included the people, concepts, and things directly related to their respective organizations, and providing feedback taken to increase CSR literacy within the company. my work. Now however, I am able to look at my job from a broader perspective, and I have a stronger focus on what Casio can do as a Activities in FY2017 manufacturer to contribute to society. 3rd Meeting: May 2016 Themes: “Corporations and Human Rights” and “LGBT Issues” Participating in a career education program as part of my 4th Meeting: August 2016 Theme: “CSV and SDGs” CSR Leader activities was also a great learning experience. I visited 5th Meeting: November 2016 Theme: “Addressing Climate Change with the Paris Agreement” elementary and junior high school classrooms, played games to promote communication with the students and talked about my 6th Meeting: February 2017 Themes: “Linking Your Job with Efforts to Solve Social Problems” and “Business Initiatives to Help Achieve the SDGs and the Paris Agreement” own work experiences. This was something I would never have experienced in my regular work. It was also very inspiring to see the Upcoming Action Plans smiling faces of the children and experience their sincerity, while also feeling the joy of being useful and appreciated by others. Using the CSR Leader system, Casio Computer Co., Ltd., has been put in place to manage initiatives using the plan- Rather than being something extraordinary, I feel that CSR is a aims to create a platform that can strategically incorporate do-check-act (PDCA) cycle. In fiscal 2018, Casio will expand very natural activity to engage in. You always find people at the center of CSR activities, whether they be corporate activities, environmental CSR approaches and concepts into the daily operations of this system to group companies in Japan and will work to activities, rule creation or operations. The first step toward social individuals and departments, and apply them to its core formulate departmental and individual goals for managing responsibility is simply caring about people. I believe that Casio can business. Serving as a concrete road map, a three-year plan CSR promotion within medium and long-term plans. fulfill its corporate social responsibilities by ensuring that all employees make the most of their own strengths and experiences to benefit those FY2017 FY2018 FY2019 who need them, namely our stakeholders. As a CSR Leader, I would like to promote volunteer activities that are unique to Casio. My aim is to CSR inclusion in departmental plans Application of PDCA cycle Basic CSR education help enhance Casio’s profile through these kinds of efforts. Participation of group companies in Japan Participation of group companies outside Japan

CASIO CSR Communication Book 2017 21 Corporate Overview

Company data Group companies by region

Name: Casio Computer Co., Ltd. Europe Headquarters: 1-6-2, Hon-machi, Shibuya-ku, 8 companies Tokyo, Japan, 151-8543

Established: June 1, 1957

Chairman and CEO: Kazuo Kashio Asia (including Japan) Americas President and COO: Kazuhiro Kashio 32 6 companies companies Employees: 2,754 (consolidated: 12,287) Middle East Paid-in capital: ¥48,592 million 1 company Net sales: ¥321,213 million (consolidated)

Operating profit: ¥30,636 million (consolidated)

Ordinary profit: ¥26,239 million (consolidated)

Profit attributable to owners of parent: ¥18,410 million (consolidated) Sales by segment and region * As of March 31, 2017 Sales by segment Sales by region Others • Molds, etc. Sales: ¥8,675 million Asia and Japan (2.7%) others Sales Consumer 33.3% • Watches 38.6% System Equipment ¥321,213 • Clocks • Handheld terminals million • Electronic dictionaries • Electronic cash registers • Calculators • Label printers and photo printers 12.8% • Office computers 15.3% • Page printers • Electronic musical instruments • Data projectors, etc. • Digital cameras, etc. North America Sales: ¥39,734 million Sales: ¥272,804 million Europe (12.4%) (84.9%)