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2007 CSR Report 2007 Special Feature Top Interview Top Interview DIC 2026S CSR Report 2007 JAPAN TOBACCO INC. CSR Report 2007 JAPAN JAPAN TOBACCO INC. 2-1, Toranomon 2-chome, Minato-ku, Tokyo 105-8422, JAPAN CSR Report 2007 For the year ended March 31, 2007 Tel : 03-3582-3111 Fax: 03-5572-1441 JAPAN TOBACCO INC. Published:June 2007 c o n t e n t s Domestic Tobacco Business JT: Headquarters Foods Business Weihai J.K. Foods Co., Ltd. Manufacturing and sale of seasonings Shanghai JS Foods Co., Ltd. Manufacturing and sale of frozen foods Pharmaceutical Business Thai Foods International Co., Ltd. Akros Pharma Inc. Manufacturing and sale of seasonings Special Feature Chapter 3 Approaches to the Global Environment Research activities in the pharmaceutical business and clinical development in the United States International Tobacco Business …………………………… JT International S.A. Top Interview…………………………………………………………3 JT Group Environmental Management 41 JT International is responsible for the JT Group’s Swickers Kingaroy Bacon Factory Pty. Ltd. Meat processing international tobacco business. JT Kansai Factory – Efforts to Raise Reliability………………………7 Environmental Management Systems……………………………43 Approaches to Reduce Environmental Impacts……………………45 Hans Continental Smallgoods Pty. Ltd. Environmental Communication……………………………………50 Manufacturing and sale of ham and sausage Chapter 1 JT Group Management Front-line Activities…………………………………………………52 JT Group Environment Charter……………………………………53 Company that Embodies JT’s Objectives……………………………11 …… Approaches to promote CSR (Corporate Social Responsibility) 12 Company Profile Corporate Governance………………………………………………13 Chapter 4 Towards being a“Good Corporate Citizen” Corporate Name Japan Tobacco Inc. ●Major Subsidiaries and Affiliates (as of March 31, 2007) …………………………………… Human Resources Management 16 in Communities Communication Name JT ■ Domestic Tobacco Business Social Contribution Activities of the JT Group………………………55 Business area: In addition to tobacco products, emphasis is placed on TS Network Co., Ltd., JT Logistics Co., Ltd., Japan Filter Technology Co., Ltd., Fuji pharmaceuticals and foods to enhance the corporate Flavor Co., Ltd., JT Engineering Inc., Central Japan Plant Service Co., Ltd., Western Chapter 2 CSR Activities in JT’s Business Social Welfare ………………………………………………………56 1 value, with the aim of becoming a “global growth Japan Plant Service Co., Ltd., Kyusyu Plant Service Co., Ltd., Eastern Japan Plant 2 Aid for Disaster-stricken Areas………………………………………58 company that develops diversified, value-creating Service Co., Ltd., JT V-Net Co., Ltd., Japan Metallizing Co., Ltd. Message from the Top of the Tobacco Business……………………21 ………………………………………… businesses.” Environmental Conservation 59 Established April 1, 1985 ■ International Tobacco Business ……………………………… CSR Activities in the Tobacco Business 23 Culture and Arts………………………………………………………62 Capital 100 billion yen JT International S.A., JTI-Macdonald Corp., ZAO JTI Marketing and Sales, LLC Petro, ………………………… Sales 4,769,300 million yen (on a consolidated basis in FY JT International Germany GmbH, JTI Tütün Urunleri Sanayi A.S. Our Philosophy as a Tobacco Manufacturer 25 Social Contribution Activities Overseas……………………………63 2006 ending March 2007) International Tobacco Business -Improving Environmental, 2,330,400 million yen (on an individual basis in FY ■ Pharmaceutical Business Health & Safety Performance…………………………………………27 2006 ending March 2007) Torii Pharmaceutical Co., Ltd., JT Pharma Alliance Co., Ltd., Akros Pharma Inc. Supplemental Materials……………………………………………66 Front-line Activities……………………………………………………30 Current Profits 312,000 million yen (on a consolidated basis in FY Independent Assurance Report & Comments………………………71 2006 ending March 2007) ■ Foods Business 189,700 million yen (on an individual basis in FY 2006 Japan Beverage Inc., JT A Star Co., Ltd., JT Foods Co., Ltd., Nihon Shokuzai Kako Message from the Top of the Pharmaceutical Business……………31 ending March 2007) Co., Ltd., Sunburg Co., Ltd., Iipingsyang Foods Corporation, Asahi Shokuzai Co., President & CEO Hiroshi Kimura Ltd., Saint-Germain Co., Ltd., Hans Continental Smallgoods Pty. Ltd., Thai Foods CSR Activities in the Pharmaceutical Business………………………33 Number of Employees 33,428 (on a consolidated basis as of March 31, 2007) International Co., Ltd., Weihai J.K. Foods Co., Ltd., Swickers Kingaroy Bacon Factory Front-line Activities……………………………………………………34 8,930 (on an individual basis as of March 31, 2007) Pty. Ltd., Shanghai JS Foods Co., Ltd. Headquarters 2-1, Toranomon 2-chome, Minato-ku, Tokyo 105-8422, JAPAN Message from the Top of the Foods Business………………………35 Number of Business Sites Area Sales Headquarters 25 Manufacturing Factories 14 ………………………………… CSR Activities in the Foods Business 37 Regional Leaf Tobacco Headquarters 6 Front-line Activities……………………………………………………39 Laboratories 3 Overseas Offices 3 (as of March 31, 2007) Sales Trend (on a consolidated basis) Number of Employees Trend (on a consolidated basis) 100 million yen (Person) 48,000 50,000 47,693 39,243 47,500 40,000 ●Period Covered (in this report) domestic and overseas companies under the *All published by the Ministry of the 32,640 33,428 31,476 FY 2006 (April 1, 2006 to March 31, 2007) environmental management of the JT Group Environment 47,000 30,000 Some JT policies, objectives and activities 46,645 46,500 46,376 20,000 scheduled to take effect after FY 2007 are ●Reference Indexes Financial information is posted on the website: 46,251 included herein. Environmental Report Guidelines (FY 2005) http://www.jti.co.jp/JTI/IR/ 46,000 10,000 Environmental Accounting Guidelines (FY 2002) ●Scope of Report Guidelines for Corporate Environmental 45,500 0 2003 2004 2005 2006 (FY) 2003 2004 2005 2006 (FY) JT activities focused on Japan, and activities of Performance Indexes (FY 2002) CSR Report 2007 CSR Report 2007 Special Feature Top Interview Top Interview The JT Group’s CSR boils down to doing what it ought to do in a straightforward and honest manner, a means to continue being part of society as a good corporate citizen. With its tobacco, pharmaceutical and foods businesses extending their Interviewer: There has been growing public interest The objective of “JT2008” remains the same: to in corporate social responsibility (CSR) in recent realize JT’s management vision and fulfill the reach worldwide, what does JT emphasize and what philosophy or years. What does CSR mean to JT? responsibilities for all stakeholders, that is, its ideas does it have to fulfill its corporate social responsibility (CSR)? shareholders; customers employees and society, in a What is the JT Group doing to continue being part of society as a good Kimura: First of all, we’re poised to become a well-balanced and highly integrated manner, thereby corporate citizen? The following is an interview with Hiroshi Kimura, “global growth company that develops diversified, enhancing their satisfaction. This, I believe, is exactly president and chief executive officer of JT. value-creating businesses.” In addition to the key principle of management. We’re committed tobacco business, therefore, we’re focusing on to following this principle, having a strong sense of pharmaceutical and foods businesses, while crisis – which refers to the fulfillment of JT’s CSR. extending our reach worldwide in an effort to enhance our corporate value. In the meantime, it’s Interviewer: How do you describe JT’s CSR activ- becoming increasingly important for companies to ities? Is there anything unique to JT? pursue sustainable management, striking a balance between the economy, the society and the natural Kimura: As I mentioned at the outset, we’re environment. We believe that Corporate Social producing and dealing with tobacco products, 3 4 Responsibility (CSR) translates into sustainability, pharmaceutical and foods. Tobacco is a contro- which we’ve been striving to achieve. versial product in many ways, pharmaceutical has In our case, this sustainability refers to realizing a direct impact on the lives of people, and foods are the “JT Brand-ing Declaration,” which is the naturally intended for human consumption. For that statement of our group mission to provide all matter, we need to have a high sense of ethics in stakeholders with “Irreplaceable Delight” through dealing with these products. Given the nature of the business activities. Delight, in this case, means products and services we offer, it’s only natural that to offer values unique to JT (such as pleasurable we should have and maintain the world’s highest surprise surpassing expectations and satisfaction levels of corporate ethics. of our stakeholders) in a well-balanced, highly JT’s corporate culture, in my personal view, boils integrated manner. In doing so, we’ll be able to exist down to doing honestly what should be done. We as a company that is valued by society and fulfills should even be absolutely honest in this regard. its corporate social responsibilities. This is what For example, JT took over RJR Nabisco’s international CSR is all about for JT. tobacco business in 1999. In the course of this business consolidation, we’ve carried out a series of measures to Interviewer: JT came up with a medium term improve quality, conserve the environment and ensure management plan last year. How does this plan occupational safety and health, all from a medium- relate to CSR? to long-term perspective. No innovative measures at all; we’ve just done what should be done, though in a Kimura: In May 2006, we announced “JT2008,” a speedy manner. These approaches have contributed
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