EIZO CORPORATION CORPORATE SOCIAL RESPONSIBILITY REPORT 2018 Contents
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EIZO CORPORATION CORPORATE SOCIAL RESPONSIBILITY REPORT 2018 Contents Corporate Information / Corporate Philosophy / EIZO Group Principles of Conduct – Seven Promises 02 Seven Promises 4: Open and Fair Trade 23 Financial Highlights / 6th Mid-Term Business Plan 03 President ’s Message 04 Seven Promises 5: Strong Bonds of Trust with Stakeholders Management Roundtable Discussion 06 Relationship with Each Type of Stakeholder 24 Our CSR Approach and Materiality Analysis 08 Relationships with Customers 25 Major Results of Activities in Fiscal 2017 09 Relationships with Shareholders / Relationships with the Local Community 26 Seven Promises 1: Creating New Value Seven Promises 6: Strict Respect and Compliance with both the Letter and Spirit of the Law Wherever You Look, You See EIZO 10 Corporate Governance 27 EIZO Solutions 11 Risk Management / Compliance 28 Competitive Advantages of EIZO 13 Protecting Intellectual Property that Enhances Value 14 Seven Promises 7: Broadminded Corporate Culture Quality Management Policy / EIZO’s Quality Assurance System 15 Laying the Foundations for a Motivating Workplace 29 Work Style Innovation / Human Resource Development 30 Seven Promises 2: Environmental Consideration for Our Products and Business Operations Our Global Initiative 31 Environmental Policy / Environmental Management System 16 Securing Safety and Health 32 Environmental Targets / Performance Report 17 Basic Product Development Sequence / Green Procurement / 18 Appendix Compliance with Environmental Standards and Legal Requirements GRI Sustainability Reporting Standard 2016 Index 33 Overview of the Environmental Impact of Our Business Operations / Environmental Risk Management / 19 Comparison Table for the United Nations Global Compact / Independent Third-Party Assurance 34 Energy Consumption and Greenhouse Gas Emissions Statement Collection and Recycling of Used Products 20 Seven Promises 3: Operating as an International Corporation Editorial Policy for the CSR Report Development and Production Network – Coherent Development and Production System / 22 • Editorial Policy: We have compiled an explanation on topics we • Issue date of next report: October 2019 consider important and a report on the impact and effects of • CSR Promotion System: CSR activities come under the responsibility Sales Network – Group Companies and Distributors our business activities on society and the environment, using of the General Affairs Division, are supervised by the operating officer the GRI Guidelines as reference. responsible for CSR and implemented by all Group companies. They • Scope of the report: EIZO Group Exceptions to the scope of are also subject to a review by the CSR Committee, comprising the coverage are explained in the notes to the relevant sections. heads of each department. • Period covered: April 1, 2017 to March 31, 2018 (FY2017) • Contact information: EIZO Corporation General Affairs Department • Issue date: October 2018 Tel: +81-76-274-2406 • Issue date of previous report: October 2017 EIZO Corporation CSR REPORT 2018 01 Corporate Information Corporate Information Corporate Philosophy/ Principles of Conduct – Seven Promises Company Name EIZO Corporation Business Activities Development, design, manufacture and sales of total visual solutions and related services Established March 6, 1968 Corporate Philosophy President Yoshitaka Jitsumori Address of Headquarters 153 Shimokashiwano, Hakusan, Ishikawa 924-8566, Japan Through the pursuit of imaging solutionswith advanced technologies,we enrich Group Sales 84,057 million yen (FY2017) people in their professionaland personal lives. Group Employees 2,325 including temporary workers (consolidated, as of March 31, 2018) Group Companies 17 (EIZO Corporation and its 6 domestic subsidiaries and 10 overseas subsidiaries, as of October 1, 2018) Development, EIZO Support Network Corporation (Japan) EIZO Group Principles of Conduct – Seven Promises Production and Sales Carina System Co., Ltd. (Japan) Irem Software Engineering Inc. (Japan) We establish the following “EIZO Principles of Conduct” as guidelinesfor each EIZO Group EIZO MS Corporation (Japan) employee and as a commitment to our stakeholders.We pledge to conduct our business in EIZO Engineering Corporation (Japan) accordance with these Principles. EIZO GmbH (Germany) EIZO Technologies GmbH (Germany) 1. We will supply high-quality products and services loved by customers through creating and offering new value by unique technologies and ideas. EIZO Rugged Solutions Inc. (USA) 2. We will promote our manufacturing and business activities in consideration ofreducing their environmental EIZO Display Technologies (Suzhou) Co., Ltd. (China) burdens. Sales EIZO Inc. (USA) 3. We will act as an international corporation with a global outlook and mindset. EIZO Nordic AB (Sweden) 4. We will conduct open and fair trade. EIZO Europe GmbH (head office in Germany and branch offices in Belgium, Czech Republic, Italy 5. We will seek to build and maintain strong bonds of trust with our stakeholders (businesspartners, employees, and the Netherlands) shareholders, and the local community). EIZO AG (Switzerland) 6. We will strictly respect and comply with both the letter and the spirit of the law as agood corporate citizen. EIZO Limited (United Kingdom) 7. We will respect basic human rights and value a broadminded corporate culture. EIZO Austria GmbH (Austria) Other EIZO Agency Corporation (Japan) EIZO Corporation CSR REPORT 2018 02 6th Mid-Term Business Plan (Fiscal 2018–2020) Financial Highlights Synergy Transformation—Creating a Growth Engine ■ Sales and Percentage Breakdown by Category (Consolidated) (millions of yen) 84,057 Basic Policy for the Mid-Term Management Plan 78,284 80,000 74,878 7,297 4,527 4,973 EIZO is shifting toward becoming a “visual technology company” that provides customers in various markets with 15,233 18,408 60,000 15,279 optimally tailored products and system solutions. In doing so, we are applying our world-leading expertise in 7,885 imaging technology, which has enabled the company to create highly-reliable products of outstanding quality. 6,870 6,956 5,749 6,355 5,470 Other Under our 6th Mid-Term Management Plan, we have embarked on the creation of an growth engine that will drive 40,000 Amusement 29,780 us into the future. More specifically, we are pursuing what we call “Imaging Chain Innovation,” the technology 23,408 26,097 V&S (Vertical & Specific) Creative Work that bundles together image capture, recording, distributing and displaying, in order to expand EIZO’s Healthcare, 20,000 Healthcare Creative Work and V&S (Vertical & Specific) domains and generate a new market. 17,991 16,822 18,111 B&P (Business & Plus) 0 FY2015 FY2016 FY2017 Priority Measures Numerical Targets 1. Business strategies in major markets Two-digit ratio Operating income to sales ▶ Healthcare (10% or higher) • Expand our domain in the operating room field ■ Operating Income (Consolidated) ■ Ordinary Income (Consolidated) through Imaging Chain Innovation. Consolidated sales for fiscal 2020 (final year of the plan) 97 billion yen (millions of yen) (millions of yen) • Increase sales in the endoscope field by enhancing 10,000 10,000 9,505 the product lineup and exploring new sales channels. 8,554 Operating income for fiscal • Reinforce sales of diagnostic monitors by adding 2020 (final year of the plan) 11 billion yen 7,500 7,033 7,500 7,105 Southeast Asia to the conventional markets of priority 5,698 and strategic markets. 5,081 5,000 5,000 ▶ Creative Work • Establish market dominance by leading in the HDR*1 era Performance Targets 2,500 2,500 ▶ V&S Enhance the product lineup and offer total image Plan for FY2020 0 0 solutions to promote the business in priority markets, FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 such as those related to air traffic control, security and surveillance, and maritime operations. Other: ▶ Amusement 3 billion yen Business & Plus: Stay ahead of market changes to maintain the number one Amusement: 18.5 billion yen position leveraged by R&D and production capabilities. 13.5 billion yen ■ Net Income Attributable to Owners of Parent (Consolidated) ■ Basic Net Income (Consolidated) Sales billion970 yen V&S (consolidated) (millions of yen) (yen) 2. Investment for growth (Vertical & Specic): 13.3 billion yen 8,000 7,138 400.00 ▶ R&D: Increase investment to accelerate “Imaging Chain Healthcare: 334.82 Innovation”. Creative Work: 40.5 billion yen 5,661 6,000 300.00 265.54 ▶ Capital investment: Aggressively invest in bolstering 8.2 billion yen development and production, mainly in Europe and 4,202 197.10 4,000 200.00 Japan. Operating income/ ▶ Higher productivity: Streamline workflows through Operating 2 11 billion yen / 11.3% 2,000 100.00 the use of RPA* and IoT under Work Style Innovation. income to sales 0 0 *1 High dynamic range FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 *2 Robotic process automation EIZO Corporation CSR REPORT 2018 03 President’s Message “Imaging Chain Innovation” Creating a New Solution for Social Needs Towards a New Growth Engine Enriching Our Society & Future As released in May 2018, the 6th Medium-Term Recently, we more frequently encounter people who Management Plan outlines our medium-term goal are interested in the company’s SDGs (Sustainable of creating a new engine for additional growth. More Development Goals). Since a business should exist to specifically, we intend to realize our “imaging chain contribute to society, it is EIZO’s responsibility to play a innovation”; a comprehensive strategy for not only