Front cover: Overall winners in the LION TOP Eco Project Waterfront Painting Contest “Playing in the River” by Megumu Ohno (Fukuoka Prefecture) CSR Report 2010 CSR Report “River with Yamame Salmon” by Daigo Sasaki (Fukui Prefecture) 2010CSR REPORT From Goo d Mo rnin g t o Mo Go re o Dr d ea N m ig s h f t or Y o u r L i fe Lion Corporation Published: November 15, 2010 Playing in the River CSR Promotion Department, Lion Corporation Inquiries: CSR Promotion Department, Lion Corporation (Social Responsibility Promotion Team/Environmental Conservation Office) 3-7, Honjo 1-chome, Sumida-ku, Tokyo 130-8644, Japan Tel: +81-3-3621-6611 Fax: +81-3-3621-6269 River with Yamame Salmon Website:http://www.lion.co.jp/en/ Next scheduled publication: November 2011 In recognition of its advanced environmental initiatives, Lion has been certified as an Eco First Company by the Japan’s Ministry of the Environment. Company Motto Lion’s operations are based on the motto, “Fulfilling a spirit of love,” reflecting the Company’s aim to enhance the happiness and lifestyles of each and every customer. Management Philosophy Lion aims to provide superior products that are useful in daily life by capitalizing on the synergies of its human resources as well as its technological and marketing capabilities. Lion will strive to continue to develop its business by maintaining the spirit of tenacity and creativity that the Company has held since its founding. Lion gratefully acknowledges all those who have supported the Company in the past and will work to build goodwill and mutual trust with its customers for the benefit of both parties in the future. January 1, 1980 Editorial Policy CONTENTS Lion views its CSR Report as an important tool allowing the Corporate Data ……………………………………………… 2 Company to communicate its CSR initiatives and draw on Message from the President ………………………………… 4 stakeholder opinions while furthering corporate activities. CSR Report 2010 details Lion’s interpretation of corporate social Special Feature 6 responsibility along with initiatives the Company undertakes to Stakeholder Dialogue ………………………………………… 6 earn the trust of society. The report adheres to the following Biodiversity Initiatives ……………………………………… 8 editorial policy. ● Two special features, covering the Stakeholder Dialogue, with its safety Lion and CSR 10 and reliability theme, and biodiversity initiatives, have been included to Lion’s CSR Approach / Corporate Governance / Establishment of respond to points made in the “Third-Party Review” of CSR Report 2009 Internal Control Systems / Evaluating Internal Control over Financial and the Stakeholder Dialogue (e.g., importance of communication Reporting / Risk Management / Information Security / Promoting and biodiversity). Compliance / Lion’s CSR Activities and Issues (2009) ● Lion’s approach to utilization of human resources, including human rights, has been clarified further and disclosure of information expanded. Customers and Lion 16 ● Approaches and initiatives relating to CSR procurement have been clarified Approach to Safety and Quality / Quality Assurance System / Product through a review of contents and make-up. Creation that Emphasizes Safety and Quality / Utilizing Customer ● Environmental data for overseas plants have been made available on Opinion / Response to Customers the Company website as a first step in establishing a global disclosure framework that includes overseas activities. URL http://www.lion.co.jp/en/csr/html/soc_csrf.htm Employees and Lion 22 ● Third-party reviews by outside experts have been included to provide Human Resource Diversity / Assisting Work-Life Balance / Human an objective assessment of the report. Resource Development / Employee Health Management / Safety and ● The booklet has been certified as a Color Universal Design and compiled Disaster Prevention Initiatives to reach as many people as possible in an easy-to-understand manner (in Japanese only). Shareholders/Investors and Lion 28 ■ The Environmental Reporting Guidelines (2007) of the Japanese Ministry Information Disclosure and Communication of the Environment and the Sustainability Reporting Guidelines (2006) of the Global Reporting Initiative (GRI) were referenced during compilation Business Partners and Lion 30 and editing of the report. Realizing Sustainable Procurement / Fair Transactions with Raw ■ All pages of the report and past reports are available on Lion’s website Material Suppliers / Fair Transactions with Manufacturing Partners / (the GRI Content Index is also provided). Teaming Up with Competitors on Delivery / Working with Wholesalers URL http://www.lion.co.jp/en/csr/html/soc_csrf.htm and Retailers on Store Presentations 【Coverage】 Social aspects of this report deal mainly with Lion Corporation. Society and Lion 32 Environmental data coverage extends to the entire Lion Group, Lion’s Social Contribution Activities / Activities of Lion Foundation for including the Lion Foundation for Dental Health. Dental Health / Teaching Importance of Oral Health Lion Group The Environment and Lion 36 Lion Corporation, Lion Chemical Co., Ltd., Lion Packaging Co., Ltd., Lion To Become a Leading Company in Environmental Friendliness …36 Engineering Co., Ltd., Lion Dental Products Co., Ltd., Lion Trading Co., Ltd., Environmental Management and Promotion Structure ………… 38 Lion Hygiene Co., Ltd., Lion Business Service Co., Ltd., Lion Field Marketing Environmental Targets and Achievements……………………… 40 Co., Ltd., Lion Logistics Service Co., Ltd., Leo Field Promotions Co., Ltd., Lion Environmental Accounting and Eco-Efficiency ………………… 42 Cordial Support Co., Ltd., Issua Co., Ltd., Ipposha Oil Industries Co., Ltd., Overview of Environmental Impact of Lion’s Business Activities … 44 Lion Akzo Co., Ltd., Lion Foundation for Dental Health Reducing Greenhouse Gas Emissions ………………………… 45 Effectively Using and Recycling Resources …………………… 46 * Leo Field Promotions Co., Ltd., and Lion Field Marketing Co., Ltd., merged Considering Environment from Product-Oriented Perspective …… 47 in January 2010 and the Company’s name was changed to “Lion Field Appropriately Handling Chemical Substances ………………… 52 Marketing Co., Ltd.” Fostering Environmental Awareness within the Lion Group …… 54 Environmental Communication ……………………………… 55 【Period Covered】 January 1-December 31, 2009 Third-Party Review …………………………………………… 56 (In places, activity reports refer to 2010 initiatives.) Editorial Note ……………………………………………… 57 CSR Report 2010 1 Corporate Data Corporate Name Lion Corporation ● Financial Summary (Consolidated) Address 3-7, Honjo 1-chome, Sumida-ku, Net Sales Tokyo 130-8644, Japan (million yen) Foundation October 30, 1891 400,000 Capital ¥34,433.72 million 341,717 338,236 (as of December 31, 2009) 350,000 331,798 330,380 321,947 President Sadayoshi Fujishige 300,000 Employees Consolidated: 5,750 250,000 Non-consolidated: 2,449 200,000 (as of December 31, 2009) 150,000 Net Sales Consolidated: ¥321,947 million 100,000 Non-consolidated: ¥255,691 million (for the term ended December 2009) 50,000 Plants Chiba Plant (Ichihara City), Odawara Plant 0 2005 2006 2007 2008 2009 (year) (Odawara City), Osaka Plant (Sakai City), Akashi Plant (Akashi City) Research Facilities Hirai (Edogawa-ku), Honjo (Sumida-ku), Odawara (Odawara City), Fukushima Operating Income (Yabuki-cho) (million yen) Sales Offices Sapporo, Sendai, Tokyo, Nagoya, 12,000 Osaka, Fukuoka 10,036 10,000 8,905 8,277 8,000 ● Net Sales Breakdown by Business 6,066 6,000 Other businesses Health Care Products (incl. special sales) 4,000 ¥136.8 billion(42.5%) ¥2.7 billion（0.8％） 2,000 Chemical Products 343 0 ¥22.1 billion(6.9%) 2005 2006 2007 2008 2009 (year) Household Products Oral Care Products ¥160.2 billion(49.8%) ¥55.4 billion (17.2%) Ordinary Income Living Care (million yen) Products Beauty Care 12,000 11,145 Products ¥46.2 billion Consolidated 10,104 net sales (2009): ¥39.2 billion 10,000 (14.4%) 8,514 (12.2%) ¥321.9 8,000 7,603 billion Fabric Care Pharmaceutical Products Products 6,000 billion ¥113.9 ¥42.1billion 4,000 (35.4%) (13.1%) 2,427 2,000 0 ● Net Sales Breakdown by Location 2005 2006 2007 2008 2009 (year) Asia ¥45.6 billion (14.2%) Net Income (million yen) 6,000 5,473 5,540 5,423 5,465 Consolidated 5,000 net sales (2009): ¥321.9 billion 4,000 3,040 3,000 Japan 2,000 ¥276.2 billion (85.8%) 1,000 0 * National and regional categories are based on geographical proximity 2005 2006 2007 2008 2009 (year) * Major countries in Asia other than Japan are China, Korea, and Thailand 2 CSR Report 2010 ● Main Lines of Business Advanced oral care products to help customers stay healthy Main Product Categories Toothpastes, toothbrushes, mouthwashes, and other Oral Care Products dental products Hair and skin care products for health and comfort of body and mind Main Product Categories Shampoos, conditioners, hair-styling products, hair-nourishment treatments, hand soaps, body washes, men’s Beauty Care Products Care Beauty cosmetics, and antiperspirants Health Care Products ts A well-rounded range of brands to meet growing self-care needs Main Product Categories Analgesics, cold remedies, eye-care products, gum disease treatments, denture products, anti-inflammatory poultices, gastrointestinal medicine, skin-care products, fever cooling sheets, tonics and nutrients, insecticides, and prescription drugs Pharmaceutical Produc Pharmaceutical Products you can relax with for keeping your clothes clean and making them a pleasure to wear Main Product Categories Laundry detergents, fine clothing care products, pre-care products,