Contents 002 Corporate Motto / Management Rationale 003 Top Management Message 005 Kyocera Group Management Roots 007 Management Based on the Kyocera Philosophy 011 Advancing Kyocera Philosophy Education 015 Kyocera Group Corporate Social Responsibility (CSR) 024 Corporate Governance 026 Risk Management and Compliance 032 Supply Chain Management 035 Approaches to Raising Quality and Customer Satisfaction Levels 041 Respect for Human Rights and Diversity 049 Cultivating Human Assets 052 Building a Safe & Secure Work Environment Social Contribution Activities 061 Assistance with Academic Advancement and Research 064 Support for Culture and the Arts 066 International Exchange and Collaboration 069 Local Community Activities Environmental Activities 078 Kyocera Group Environmental Management 084 Green Management 096 Green Products 116 Green Factories 135 Green Communication 141 Editorial Policy 142 ISO9001 Certification Status 143 ISO14001 Certification Status 145 OHSAS 18001 Certification Status 146 GRI and ISO26000 Comparison Tables 1 CorporateCorporate Motto Motto / Management / Management Rationale Rationale CorporateCorporate Motto Motto / Management Rationale Corporate Motto“Respect the Divine and Love People” “Respect the Divine and Love People” Management Rationale ToManagement provide opportunities Rationale for the material and intellectual growth of all our employees, and through our joint efforts, contribute to the advancement of society and humankind. To provide opportunities for the material and intellectual growth of all our employees, and through our joint efforts, contribute to the advancement of society and humankind. Management Philosophy ToManagement coexist harmoniously Philosophy with our society, our global community and nature. Harmonious coexistence is the underlying foundation of all our business activities as we work to create a world of prosperity and harmony. To coexist harmoniously with our society, our global community and nature. Harmonious coexistence is the underlying foundation of all our business activities as we work to create a world of prosperity and harmony. Methods of Management 1.Methods To earn offair Management profit through harmonious business practices that result in products that satisfy our customers — providing quality products at lower prices, realized through ongoing R&D and sincere service. 1. To earn fair profit through harmonious business practices that result in products that satisfy our customers — 2. To manage our company as if we were a family, hearts bound together devoid of antagonism, helping each providing quality products at lower prices, realized through ongoing R&D and sincere service. other with a mutual sense of gratitude and appreciation. 2. To manage our company as if we were a family, hearts bound together devoid of antagonism, helping each other with a mutual sense of gratitude and appreciation. The human race is facing a turning-point in history. In politics, business and other areas of society, the old order no longer seems to function well. A new framework and way of The human race is facing a turning-point in history. In politics, business and other areas thinking are being sought. of society, the old order no longer seems to function well. A new framework and way of thinking are being sought. This new way of thinking is a philosophy that enables all living things on earth to survive and thrive — the spirit of “Living Together.” This new way of thinking is a philosophy that enables all living things on earth to survive and thrive — the spirit of “Living Together.” Most important for a business enterprise fulfilling its public responsibility is building mutually supportive relationships in order for society — including businesses — to Most important for a business enterprise fulfilling its public responsibility is building continue their existence. It is vital that business management is based on the spirit of mutually supportive relationships in order for society — including businesses — to Living Together for mutual development to occur. continue their existence. It is vital that business management is based on the spirit of Living Together for mutual development to occur. Kyocera was founded in 1959 as a specialized maker of fine ceramic components. Building on this technology, we committed to multilateral development and grew into a Kyocera was founded in 1959 as a specialized maker of fine ceramic components. comprehensive manufacturer involved in all stages of production, right up to finished Building on this technology, we committed to multilateral development and grew into a equipment. Kyocera's growth has not simply been a matter of creating new value comprehensive manufacturer involved in all stages of production, right up to finished through technology and goods. It has also been about following the same path as equipment. Kyocera's growth has not simply been a matter of creating new value society and people, based on the bonds of human minds. Our approach to Living through technology and goods. It has also been about following the same path as Together will remain unchanged. society and people, based on the bonds of human minds. Our approach to Living Together will remain unchanged. Kyocera seeks to join the hearts and minds of people, and to share the joys of life. Based on the spirit of Living Together, we strive to create a prosperous future for all. Kyocera seeks to join the hearts and minds of people, and to share the joys of life. Based on the spirit of Living Together, we strive to create a prosperous future for all. 2 Top Management Message Top Management Message Correct application of the concept, “Do what is right as a human being” At the heart of Kyocera Group management is the corporate philosophy known as the Kyocera Philosophy, which emphasizes the importance of fair business based on ethical, moral and social standards that people should uphold throughout life. Ultimately, it comes down to one criterion for making decisions: “What is the right thing to do as a human being?” To realize our corporate philosophy, Kyocera developed a unique management control method known as the Amoeba Management System. With this system in place, Kyocera promotes a management method in which all employees can participate. Furthermore, Kyocera believes in highly transparent corporate activity with timely disclosure of information to customers, employees, shareholders, investors, business associates, and all other stakeholders. For the Kyocera Group, CSR is tantamount to the practice of the Kyocera Philosophy — the heart of Kyocera Group management. We believe practice of the Kyocera Philosophy builds mutual trust with stakeholders, and contributes to sustainable growth for the Kyocera Group, as well as the overall development of society. We will continue to engage in corporate management through practice of the Kyocera Philosophy. Addressing social issues through business operations The Kyocera Group is primarily engaging in business development in two areas that we see as growing markets. One is the information and communications market. This market is expected to see increased global use of smartphones and higher-speed networks. The other market is the environment and energy market, which is being spurred by a rising awareness of global environmental protection. The information and communications market not only requires quality and safety, but user-friendliness is also essential for product development. Products must be accessible and satisfactory to people of all ages, regardless of gender or disability. For example, the Kyocera Group has developed a smartphone with a unique feature that uses sound and vibrations to transmit the voice of the other person through the display screen. This enables users to hear easily in train stations and other noisy environments. Mobile handsets designed specifically for the needs of children and elderly people are also being commercialized. The Kyocera Group is committed to meeting the needs of society and developing products that satisfy a wide range of customers. In the environment and energy market, we are applying our strengths in energy creation technologies — including solar power and solid oxide fuel cells (SOFC) — as well as wireless communication technology. Based on these strengths, we have begun marketing original Kyocera Home Energy Management Systems (HEMS) which link solar modules, SOFCs and storage batteries with the commercial power grid to further raise the efficiency of energy management. Meanwhile, utility-scale mega-solar power plants require solar modules featuring high quality and long-term reliability. By providing such modules and by advancing its solar power generation business in diverse ways, Kyocera is further promoting the spread of renewable energy use. The Kyocera Group will continue to address social issues3 through business, and thereby contribute to development of a sustainable society. Top Management Message Correct application of the concept, “Do what is right as a human being” At the heart of Kyocera Group management is the corporate philosophy known as the Kyocera Philosophy, which emphasizes the importance of fair business based on ethical, moral and social standards that people should uphold throughout life. Ultimately, it comes down to one criterion for making decisions: “What is the right thing to do as a human being?” To realize our corporate philosophy, Kyocera developed a unique management control method known as the Amoeba Management System. With this system in