CSR Report 2007 English Digest Version - Unicharm · Publication of CSR Report 2007 English Digest Version/ Company Profile Message from the President & CEO ... CSR Activities Lead
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C O N T E N T SPublication of CSR Report 2007English Digest Version
The English digest version of CSR Report 2007 has been published to
foster understanding of Unicharm's business operations in all involved in
the company's activities, not only in Japan but also in other countries, by
presenting the company's business philosophy and operations in summary
form, based on CSR Report 2007 published in June 2007.
We intend to offer accurate and useful information to as many
people as possible and look forward to receiving your honest opinions and
suggestions.
Please note that this Digest Version is based on CSR Report 2007
(Japanese version) which is available at the following URL:
http://www.unicharm.co.jp/csr/download.html
Publication of CSR Report 2007 English Digest Version/Company Profile
Message fromthe President & CEO
Corporate Ideals andthe Direction of CSR
CSR Expanding andPervading Globally
CSR Activities Lead OverseasOperations ofthe Unicharm Group
Promoting CSR to meetthe Expectations ofOur Stakeholders
Continuing to Be the Brand of Choice for Customers
Motivating Employees to Workto Achieve an Affluent Lifestyle
Thinking about What Should Do for the Earth andWhat Can Do for Society
Company ProfileCompany Name: UNICHARM CORPORATION
Date of Establishment: February 10, 1961
Paid-in Capital: ¥15,992 million (As of March 31, 2007)
Issued Common Stock: 68,981,591 (As of March 31, 2007)
Head Office: 182 Shimobun Kinsei-cho, Shikokuchuo-City, Ehime 799-0111, Japan
Number of Associates:1,007 [6,265 on a consolidated basis] (As of March 31, 2007)
Stock Exchange Listing:First Section, Tokyo Stock Exchange
Major Operations:Manufacture and sales of baby care products, feminine care products, health care products, cosmetic puffs, and household products, industrial materials, and food packaging materials
URL: http://www.unicharm.co.jp/
Subsidiaries and Affiliated CompaniesJapan Unicharm Product Co., Ltd. Unicharm Material Co., Ltd. Kokko Paper Mfg. Co., Ltd. Cosmotec Corporation Unicharm PetCare Corporation Uni Care Co., Ltd. Unicharm Mölnlycke K.K.
Overseas United Charm Co., Ltd. (Taiwan) Uni-Charm (Thailand) Co., Ltd. (Thailand) Shanghai Unicharm Co., Ltd. (China) Unicharm Consumer Products (China) Co., LTD. Unicharm Consumer Products Service (Shanghai) Co., Ltd. (China) LG Uni-Charm Co., Ltd. (Korea) PT Uni-Charm Indonesia (Indonesia) Uni-Charm Corporation Sdn. Bhd.(Malaysia) Uni-Charm(Vietnam) Co., Ltd. (Vietnam) Uni-Charm Mölnlycke B.V. (Netherlands) Unicharm Gulf Hygienic Industries Ltd. (Saudi Arabia)
Others 9 companies (As of March 31, 2007)
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Message from the President & CEO
Pursuing the Correct Corporate Management to Bring Valueto All Stakeholders
Awareness of the Importance of "Interaction" with Stakeholders
At the beginning of every year, I announce a keyword - a
single kanji character - to all employees. It contains a message
which employees should focus on during that year. Past keywords
are Zen ("all") in 2003, Ritsu ("lead") in 2004, Ai ("love") in 2005
and Yume ("dream") in 2006. For 2007, the character Kou, which
means "interaction," has been selected. In pursuing our corporate
goals, interaction is the key to success. Under this keyword, we
will consolidate all our intellectual knowledge and know-how at all
levels both inside and outside the organization, and all of us are
required to communicate effectively throughout the organization.
This will be achieved not only by exchange of words but also by
good interaction between minds. I hope that all members of our
group will put true communication into practice. The concept of
Kou is also important for our CSR activities. We must all recognize
that true communication with our stakeholders - our customers,
shareholders, business partners and affiliates, employees, and
the whole of society, is vital for the success of our CSR activities.
As the company operates worldwide, we will continue to
pursue correct corporate management, with strong awareness of the
importance of communication across the full spectrum of interaction
with society, and to bring added value to our stakeholders.
Achieving CSR in the Unicharm Way
Our lifestyles are constantly changing, and customers
become more sophisticated, and their needs constantly grow and
diversify. Unicharm has captured these changes in a positive and
timely manner, and has always developed new products to meet
their expectations. We will continue to do this and to develop
environment-friendly products that respond to the changing global
environment, in a way which only Unicharm is able to dedicate
to. I urge each employee of our group companies to embrace the
responsibility that we bear toward society and to act accordingly.
We will not be able to take one step closer to our goals in CSR unless
we manage to share our ideals and dreams among all our members.
In 2005, we introduced our medium-term vision "Global 10"
which clarified Unicharm's goals to become No. 1 in Asia in nonwoven
fabric and absorbent materials and to acquire a 10% global market
share, and aimed to position us among the industry's top three
companies. We currently develop products and technologies in more
than 24 countries in Asia, the Middle East and Northern Africa. To
solidify this progress, we are committed to constant achievement
using our unique business model, SAPS (Schedule-Action-
Performance-Schedule). This encourages us to pursues what we
believe is right for humankind, and this surely relates to CSR activities.
All of us will continue to work on to share greater understanding and
implement our CSR activities under the model. I am certain that our
efforts will bring solid results for our CSR activities.
The Basic Concept behind Our CSR Activities Comes from Our Corporate Ideals
In our corporate ideals, established in 1974, Unicharm declares
"to pursue correct corporate management principles that bring
together corporate growth, well-being among our associates, and
to fulfill our social responsibilities." This is the concept behind our
CSR activities. To achieve this, we focus on issues relating to the
environment and natural resources. We also set our mission to enrich
people's daily lives by "seeking and providing effective solutions for
use of disposable products."
Unicharm shares the understanding with society that the
company product lines - disposable diapers for babies, children
and adults, feminine hygiene products, household cleaners, wet
wipes and disposable masks - has social meaning in light of
people's lives and the environment. With this understanding, we
integrate our corporate ideals into our business motto aimed at
"turning discomfort into comfort". Our employees take pride in their
work when they bring solutions to people to enjoy their health and
to experience the joy of living, and contribute health, hygiene and
sanitation to people at home, in Asia and in the rest of the world.
In fiscal 2006, Unicharm disseminated its CSR activities
and since that time, has expanded its activities to the overseas
businesses, under the slogan "Group-wide and Global". The
company continues to improve its domestic activities in Japan as
well and holds CSR Report Reading Sessions every year. These
assist employees to study the environmental issues raised in our
environmental reports and further to learn about our stakeholders.
These activities focus the company's efforts on our stakeholders,
and make us determined to meet their expectations.
Strengthening CSR in China is the Core for Our Business Globalization
While our business continues to grow worldwide, it is important
to integrate ideas about CSR in group companies into one concept.
This is why we participated in the United Nations Global Compact
in May 2006 and created unity across our domestic and overseas
operations. Participation certainly helped Unicharm to implement
its CSR activities at overseas subsidiaries effectively.
In 2007, we set up a new CSR Office at our Chinese subsidiary,
Shanghai Uni-Charm Co., Ltd. In view of the huge market potential
in China, it is important to take an effective approach to our CSR
activities there, including reinforcing our corporate ethics and
compliance in local operations. The Office will be the center of our
overseas CSR activities. Forthcoming year, we will introduce our
CSR activities from Japan to our Chinese operation, and then to the
other overseas subsidiaries in the following years.
President & CEO Takahisa Takahara
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Corporate Ideals and the Direction of CSRIn its corporate ideals Unicharm promises to deliver top-class products and services around the world and pledges to its stakeholders to
practice correct corporate management through cooperation and collaboration among all its employees.
Unicharm's CSR activities are now being expanded on a global scale under the goals established in Global 10 (see page 3) and this is
evolving to include not only Unicharm's own employees, but also its suppliers and society at large.
Unicharm's goals in CSR
“ Providing the care. Supporting you with care.”
The fundamental concept behind CSR at Unicharm is that each employee examines what their responsibilities to society are and puts them into practice on a personal basis.
Unicharm ideals &corporate policy
Expectations ofstakeholders
Developmentsin the industry
Regional trendsGlobal trends
We take pride in being a manufacturer and marketer of products that are valuable to society – products
that are used from the moment of birth and onward throughout our lives.
In conducting our business activities we are determined to bring safety and security both in quality and
environmental protection focusing on people in Asian countries.
In addition, we place importance on ethical values in maintaining pride in what we do.
Unicharm promotes CSR based on this fundamental concept.
The Global Compact's ten principles
Unicharm Ideals
• WE contribute to creating a better life for humankind by offering only the finest products and services to the customer, both at home and abroad.
• WE strive to pursue correct corporate management principles which bring together corporate growth, well-being among associates and fulfill our social responsibilities.
• WE bring forth the fruits of cooperation based on integrity and harmony, by respecting the independence of the individual, and striving to promote the Five Great Pillars.
• Pledge to the Customers • Pledge to Our Shareholders• Pledge to Business Partners • Pledge to the Associates• Pledge to Society
Beliefs and Pledges
• Creativity & Innovation • Ownership• Spirit of Challenge • Leadership • Fair Play
Five Great Pillars
Principle1 : Businesses should support and respect the protection of internationally proclaimed human rights; andPrinciple2 : make sure that they are not complicit in human rights abuses. Principle3 : Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;Principle4 : the elimination of all forms of forced and compulsory labour;Principle5 : the effective abolition of child labour; andPrinciple6 : the elimination of discrimination in respect of employment and occupation.
HumanRights
Labour Standards
Principle7 : Businesses should support a precautionary approach to environmental challenges;Principle8 : undertake initiatives to promote greater environmental responsibility; andPrinciple9 : encourage the development and dif fusion of environmentally friendly technologiesPrinciple10 : Businesses should work against corruption in all its forms, including extortion and bribery.
Environment
Anti-Corruption
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Business DataCompany names : Shanghai Unicharm Co., Ltd. (established 1995)Unicharm Consumer Products (China) Co., LTD. (established 2001)Unicharm Consumer Products Service (Shanghai) Co., Ltd. (established 2002)
Location : Shanghai
Number of associates :703 (including Plants No. 1 & No. 2, as of March 2007)
The Chinese economy has undergone spectacular
growth and change over the past decade, with
both the Sofy and Mamy Poko brands gaining wide
consumer acceptance.
In the years ahead, it is important for us to grasp the
major expectations and demands from consumers
and take appropriate action.
CSR is a concept that covers a broad range of
areas, including corporate principles and governance,
compliance with laws, environmental management
and employee welfare. We place our foremost priority
in CSR in becoming a company that reaches beyond
the safety of its products and on to bring a sense of
security. We are taking action under the CSR Office
initiative, focusing on the safety of our products and
their raw materials.
Unicharm CSR in China
Major products : Baby care products (paper diapers); feminine care products (sanitary napkins and panty liners)
Sales offices : Shanghai, Beijing, Guangzhou, Wuhan, Shenyang, Jinan and Chengdu(Marketed in four direct-controlled municipalities & 147 cities in 22 provinces)
Manufacturing plants : Shanghai No. 1 Plant (opened in 1996) & Shanghai No. 2 Plant (opened in 2004)
CSR Expanding and Pervading Globally
CSR Office Established in Chinese Subsidiary forms the Basis for Promoting CSR in East Asia
Director, Senior Executive OfficerUnicharm CorporationPresidentUni-Charm Consumer Product Service (Shanghai) Co., Ltd.
Kennosuke Nakano
Vice President
Eiji Tominaga
Offering Products That Are Most Gentle to Consumers
Unicharm established its subsidiary in China in
1995, with its core business operations in feminine
hygiene and baby care products. Presently, the
company has gained wide customer support in both
product categories.
In Shanghai, women have emerged as a rapidly
growing workforce as in Japan, and an increasing
number of women are leading lifestyles focused
around their work. In feminine care, Unicharm has
gained broad support for its products, which deliver
security in difficult working situations, with products
such as Sofy Nighttime Protection. In the baby care
category, consumer demand for quality is rising,
and we are planning to develop the high-priced
products under the Mamy Poko brand name.
The number of feminine hygiene product users
is estimated at roughly 400 million across the whole
of China, and the number of diaper users at around
40 million. We are planning to achieve our goal of
being seen as a manufacturer that is gentle and kind
to consumers with products that deliver both safety
and security, as well as by communicating our goals
and products.
Global Application of CSR
In fiscal 2006, we opened the first CSR office in the
Unicharm Group's overseas operations in China.
Consumer incentive in China is on the rise
with the development of distribution systems and a
rise in the GDP. In pace with this growth, consumer
interest in products has increased, with inquiries
to our customer service office increasing every
year. In view of these developments, we believe
that organization-wide action to establish quality
assurance and product safety will lead to greater
customer satisfaction and ultimately to development
of the corporate brand.
Moreover, China is the key market in East
Asia in the Unicharm Group's overseas business
operations. We have established the CSR office
also to increase awareness of CSR in the country,
to establish the concept firmly at the center of
business activities, to use the success of the
business model to apply it to other operations, and
ultimately to achieve the Global 10.
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The CSR Office is organized under the following three groups, classified by function.
CSR Organization
• Pharmaceuticals GroupPrincipal activities are management of administrative procedures in gathering facts for meeting national standards on products and monitoring labeling on packages, advertising and store sales promotion items. We represent the position of vice president of the Household Paper Committee of the China Paper Association, participating in the development and revision of national standards for the industry.
• Materials & Product Safety GroupThe group is engaged not only in verifying product safety but also in the analysis and confirmation of materials safety, working to prevent the release of hazardous chemicals into the environment and their effects on the human body. In addition, it is responsible for managing material safety data sheets (MSDS) for the company's material suppliers in order to inspect materials safety.
• ISO Promotion GroupThe group works constantly to promote quality management based on ISO 9001 certification acquired mainly by our manufacturing plants. In 2007, environmental management activities are underway for ISO 14001 certification.
Public sector-related organizationfor the first half of fiscal 2007
Public sector-related divisions
PharmaceuticalsGroup
ISO PromotionGroup
Materials & ProductSafety Group
Intellectual Property& Legal Affairs Office
CustomerService Office
GeneralAffairs Office CSR Office
CSR Office
Approach to Human Resources DevelopmentAt Unicharm, our long-term goal in human resources development is to have each employee think and plan their own careers and to achieve their own goals. Under the leadership of the Human Resources Development Group in Japan, we are in the process of building a manpower development organization for all local business operations, including group training for local marketing personnel in Japan and specialized technical assistance from Unicharm Product and United Charm Co., Ltd. (Taiwan).
Creating a Workplace for Workers
There are many programs that provide opportunities for employees to advance their careers, from
financial assistance to workers for voluntary education schemes, voluntary job relocation, and the Unicharm Management School for young managers aimed at finding solutions to business management issues. In addition, careful attention is given to
employee welfare, including employee counseling and semiannual interviews with department heads, in order to enable workers to dedicate themselves to their jobs. Employee satisfaction was 63.5% in 2005, and this rose to 83% in 2006.
Personnel Affairs
Senior employees act as instructors for new workers
Assurance of Safety in Development
For product safety inspections, in contrast to the legal standards, industry standards and internal standards that apply in Japan, product safety is ensured in China by the need to satisfy national standards. At Unicharm, our product development satisfies national standards and at the same time is designed to further boost customer satisfaction. Based on this understanding, the Public Sector Department and Development Department have joined forces to establish the Materials & Product Safety Group and the CSR Office at the same time. Its first step was to develop guidelines for product safety. The guidelines for safety and environmental protection were developed by comparing materials safety inspection and evaluation standards implemented in China with those in Japan. Af ter modifications to reflect conditions in China, the first version was completed. Starting in April 2007, Unicharm is seeking the understanding of and cooperation from materials suppliers with meeting these guidelines. The guidelines are scheduled to be upgraded in phases, with publication of the second and third versions scheduled. However, improving
materials and product safety requires not only the development of schemes and rules, but also training for the employees who implement these regulations. Action will be taken to promote greater voluntary efforts for quality assurance.
Collaboration between Chinaand JapanDue to the differences between the two countries and consumer preferences for sanitation and cleanliness, values regarding comfortableness and the priority given to different features, product needs are different in China. For instance, the needs of Chinese women differ in the thinness and absorbency of f e m i n i n e h y g i e n e p r o d u c t s , b a s e d o n r e p l a c e m e n t frequency and skin condition. As a result, the main product line is an ultrathin type that is thinner than those marketed in Japan. For this reason, the material used for the napkin sur face
differs from that in Japan, requiring development of product specifications exclusive to China. In testing baby care products, paper diapers are being tested on as many Chinese babies as possible to check the absorbency, ease of application, impact on the skin, etc., in order to adapt the product performance for Chinese consumers. Development is moving forward through collaboration between Japanese and Chinese representatives, with the basic product being developed in Japan using Japan's advanced technology and subsequently customized to satisfy consumer needs at the Development Center in Shanghai.
Product Development
Diaper training in a diaper wearing test
Employee Welfare, Manpower & Materials Department
YILI SHENManager, Manpower & Materials Department
GUOPING WANG
Senior Manager, Development Department
Yoshihisa Fujioka
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ISO Certification and Management at Subsidiaries in China
Unicharm's Chinese subsidiaries have
been working on ISO certification in the
area of quality management since their
establishment. ISO 9002 certification was
acquired in 1999, followed by ISO 9001
certification in 2002. No. 2 Plant acquired
ISO 9001 certification in 2005.
With ISO 9001 certification,
quality control officer Hazen Liu took
the initiative in introducing activities,
starting with fostering an understanding
of what is involved among the leader-
class members. General employees
across the entire plant were educated
through work procedure manuals and
documents. Based on this experience
and the expertise gained, the Shanghai
plant is now working on ISO 14001
certification, the international standard
for environmental management.
ISO certification and management
bring the benefits of risk reduction
through cost cutting in compliance with
laws and regulations. At the same time,
growing consumer awareness of quality
is leading more consumers to choose
and purchase products of high quality.
ISO certification proves that Unicharm's
environment management is on an
international level, delivering products
that are safe and reliable for consumers.
(From left)
HEZEN LIUISO 9001 & ISO 14001 Promotion, CSR Office
JIANJUN BOAccounting administration
JING YING DING ISO 9001 & 14001, CSR Office
Products Manufactured to Bring Customer SatisfactionQuality control in China is being implemented based on the same management standards and quality standards used in Japan. Likewise, facilities at the plants are generally identical to those used in plants in Japan. However, there are differences in the experience and expertise of the employees who carry out the operations. For this reason, technical assistance is being provided by quality control instructors send from Japan on a regular basis. Materials audits and management training are also being conducted regularly in cooperation with Unicharm Product. Among the activities underway at the Shanghai plants, CP control (dispersion management) is
being implemented for the manufacture of feminine hygiene product as in Japan, starting in the first half of 2006. Products are being sampled every day at a fixed time, in order to inspect rated values and standards and to examine improvements based on the data. This way, improvements can be made without waiting for customer c o m p l a i n t s b y identifying aspects that require improvement in the production process and addressing them accordingly.
The Unicharm Group's s tance on "manufacturing products that bring customer satisfaction" remains the same in its overseas operations.
Quality
Visual inspection conducted after passing through inspection equipment
Greater environmental awareness must be fostered throughout the entire workforce. Both No. 1 and No. 2 plants in Shanghai are presently preparing for ISO 14001 certification at the end of 2007. The first step is to develop rules and schemes from the top down. Applying this framework, we will work to improve the environmental awareness of every employee. On the production floor level, waste is collected and sorted into a variety of categories. Diligent action to reduce material waste, including recycling coiled material cores and trim loss*, is underway by the entire workforce. Environmental awareness is growing steadily.
Also, environmental awareness in materials purchasing is also being fostered by asking suppliers to conduct materials audits and to simplify packaging. With the Olympic Games in Beijing and the international exposition to be held in Shanghai in the near future, environmental awareness is growing gradually among the Chinese population. In order to protect and maintain the Unicharm brand in China, environmental activities and improvement of employee awareness are always being promoted with consciousness of the fact that we are manufacturing disposable products.
Environment
Disparity in standards is being verified with CP control, thus identifying points that require improvement
* trim loss: material offcuts
Senior Manager & Plant Manager, Production Department
Masato Ishikawa
Dissemination of Environmental Awareness
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Korea
China
Vietnam
Philippines
Malaysia
Singapore
Taiwan
Thailand
Indonesia
Saudi Arabia
Netherlands
CSR Activities Lead Overseas Operations of the Unicharm GroupUnicharm Group aims that each operation promotes independently its
CSR activities along with our company ideal.
Here, we introduce CSR activities of our main overseas operations, in
Thailand, Taiwan, and Indonesia.
Thailand
Personnel Affairs
Reinforcement of manpower development & promotion of localizationMuch effort is being directed to the manager training by each class, in order to build management based on local manpower. The board of directors includes a Thai national, and two of the four business divisions are headed by Thai directors. Also, the Personnel Committee, which is the decision-making body for personnel management and employment regulations, consists of three Thai nationals and three Japanese members.
Location: Bangkok Established: 1987 Number of associates : 803Major products: Baby care, feminine care and healthcare products
In May 2007, the company became the fi rst overseas operation to acquire GMP certifi cation for sanitary napkins and panty liners.* Good Manufacturing Practice (GMP): Production and quality management standards for pharmaceuticals and quasi-drugs
Quality assurance organization strengthened by GMP* certifi cationTOPICS
Quality Assurance
Changes in package labeling brings assurance to customersLabeling on Mamy Poko is written in English, Thai, Chinese, Malay and Indonesian, resulting in a reduction in information for individual consumers. In order to prevent this problem, improvements have been made to increase the information on labels in order to bring a greater sense of security and trust to consumers. In addition, a Customer Care Center and Customer Service Offi ce have been opened to allow more feedback of customer opinions.
Product Development
Localizing products to meet local customer needsThe Research Center in Thailand is in charge of product development for all of Southeast Asia. Although the basic functions and specifi cations are identical to those of Japanese products, greater effort is being put into localization in order to adapt to local customer needs.
Environment
Extending ISO 14001 certifi cation to a higher levelSince acquiring ISO 14001 certifi cation in 2003, the company continues to extend its certifi cation to a higher level. Presently, interest in environmental issues is growing in Thailand, in the face of threats from air and water pollution and smoke hazard from slash-and-burn farming.
Uni-Charm (Thailand) Co., Ltd.
Korea
China
Vietnam
Philippines
Malaysia
Singapore
Taiwan
Thailand
Indonesia
Saudi Arabia
Netherlands
Korea
China
Vietnam
Philippines
Malaysia
Singapore
Taiwan
Thailand
Indonesia
Saudi Arabia
Netherlands
Manufacturing pants-type disposable diapers for infants and adults with a technology tie-up in the Netherlands
: Baby care
: Health care
: Feminine care
: C&F
: Manufacturing
: Sales
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Taiwan
Personnel Affairs
Employee training to avoid labor hazardsIn order to create a safe work environment, a hazard prediction training (KYT) program is underway to boost safety in the workplace.
Location: Taipei Established: 1984 Number of associates : 252Major products: Baby care, feminine care, healthcare and C&F products
Activities have been underway from May 2007 to acquire OHSAS 18001 certification, the international standard for labor safety management systems. Certifi cation is scheduled for November 2007.
OHSAS 18001 certifi cation activities bring greater workplace safetyTOPICS
Quality Assurance
Quality management organization based on ISO and national standardsTaiwan National Standard (CNS) certifi cation has been acquired for baby diapers and sanitary napkins. In addition, ISO 9002 certification was acquired in 1996 and ISO 9001 certifi cation in 2002.
Product Development
Pursuit of safety in raw materials to meet social needsIn recent years, environmental pollution from fluorescent compounds
has attracted public attention in Taiwan. In the face of this concern, use
of materials containing fluorescent compounds and the launch of new
products containing these chemicals have become diffi cult.
In response to customer needs, studies will be conducted on safe
materials and new product development free of fl uorescent compounds.
United Charm Co., Ltd.
Environment
Strict compliance with laws and regulations for plant employeesISO 14001 certifi cation has already been acquired in 2003. Efforts are underway among employees working at the manufacturing plant on a daily basis, in day-to-day job routines and action plans, in order to foster environmental actions without violating regulations on refuse-derived fuels (RDF), waste treatment, recycling and energy conservation.
Indonesia
Personnel Affairs
Management training for growth for both the company and its employeesStable and swift business growth depends on manpower. Top priority has been placed on human resources development for both employees and managers, with long-term training programs in Japan and other overseas locations, aimed at acquiring specialized knowledge. Within the company, study sessions are being organized for middle-level employees with the company president and personnel administration director acting as instructors, as well as divisional study groups held on a weekly basis. In the area of work safety and environment improvement activities, labor safety and health committee meetings and safety patrols are conducted every month. In safety, emphasis is placed on the 3S's, exhaustive use of safety covers for equipment, and training of plant workers.
Location: Jakarta Established: 1997 Number of associates : 380Major products: Baby care and feminine care products
In addition to ISO 9001 certifi cation acquired in 2003, action this year focuses on GMP certifi cation in order to build quality assurance at a higher level. Plant renovation and employee training and guidance are being implemented systematically.
GMP certifi cation bring higher levels of product quality maintenanceTOPICS
Quality Assurance
Quality improvement is the theme in monthly meetingsTo maintain product quality, quality improvement activities are underway at monthly quality meetings organized on selected quality-related themes. In terms of operational quality, worker skill management and training is being conducted systematically, with work procedure manuals for each work process, documentation of product inspection standards, etc. In production quality, activities to build quality into the manufacturing process are underway by managing production requirements.
Product Development
Activity with emphasis on customer opinionsCustomer requests and complaints received at the customer service offi ce
are being fed back for improvements. In addition, consumer assessment
checks are being held at new product launches by organizing discussion
meetings between consumer monitors. Product use tests are also being
conducted before launch to emphasize the voice of the consumer on
practical product features.
PT Uni-Charm Indonesia
Environment
Fair waste processing practicesWaste disposal and processing for the plant are contracted to enterprises
certified by public organizations, In the future, procedures practiced
at Japan headquarters are expected to be introduced to reinforce
environmental management.
(All statistics given are at March 31, 2007)
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Promoting Unicharm's Own CSR ActivitiesAs every single employee at Unicharm fulfils their duties, they are committing to making our consumers' lifestyles more comfortable by delivering "care" through our products and services. Unicharm recognizes that it has a corporate social responsibility to help its employees uphold this spirit and conducts it CSR activities accordingly. In fiscal 2006, we implemented a range of programs across all our employees at Group companies to raise employee awareness of CSR, including in our overseas subsidiaries. In
addition, we hosted our second stakeholders' meeting on our belief that it is important to listen to the voices of our stakeholders. It was the opportunity for us to learn what their expectations are, and listen to their valuable comments, which helped us identify problems we had not recognized before. Although there are many issues that cannot be addressed immediately, we are committed to promoting our own CSR activities through taking advantage of every opportunity to communicate with our stakeholders.
Director, Senior Executive Officer, General Manager of CSR Department
Eiji Ishikawa
The Group realizes how important it is to enhance corporate value in
a sustainable way and to fulfill its corporate social responsibilities at
the same time. We achieve this through business activities in which
management and operating divisions work in unison, guided always by
the correct corporate management principles stipulated in the Unicharm
Ideals. Based on this recognition, the Company maintains a management
structure that comprises directors and corporate auditors. The structure
has enabled us to bolster the decision-making and supervisory functions
of the directors as well as the executive functions of the executive officers.
In addition, the number of board members was reduced and the term of
office was shortened to one year. Unicharm holds Business Plan Advisory
Meetings every six months attended by all directors, corporate auditors
and executive officers, at which we determine the business plans for
each operating division. Chaired by the President and CEO, the Business
Execution Board meets on a monthly basis. The Board strives to ensure
the appropriate and prompt resolution of important issues tabled by the
Board Chairman based on the execution status of the business plan.
For a detailed data on the number of directors and directors' remuneration,
please refer to the Annual Security Report.
Corporate Governance is the Backbone of CSR Activities
http://www.unicharm.co.jp/ir/index.html
Unicharm's basic policy in promoting CSR is that each employee is responsible for deciding what corporate social responsibilities the Company
should fulfill to create a better life for humankind, as stated "how to fulfill those responsibilities" in the Unicharm Ideals.
In fiscal 2006, we used the CSR promotion slogan "Group & Global" in expanding our activities to our foreign Group companies.
To instill the concept of CSR into its
employees, Unicharm held its fifth CSR
Report Reading Session this year. In
order to raise our employees' awareness
of contacting with society, we arranged
them to see the stakeholders' meeting
video.
To achieve effective procurement
focused around CSR, we carried out
benchmarking at leading suppliers,
unified in-house procurement policies,
and held a preliminary open hearing.
Our social contribution activities in
fiscal 2006 centered on disaster relief.
We provided suppor t for disasters
resulting from the earthquake in Jakarta
and the prolonged rainy season in Japan
in cooperation with organizations with
whom we had made new contacts, to
increase our points of contact with
society.
Unicharm's Groupwide CSR Promotion Structure
The CSR Committee is chaired by the President and CEO and meets four times a year to advance groupwide CSR activities.
Planning Headquarters/Global Marketing Headquarters/Global Development Headquarters/Global SAPS Human Resource Development Department/Intellectual Property & Legal Department/Customer Service Office/Internal Auditing Office/ Unicharm Product Co., Ltd.
CSR CommitteeChairman: President and CEO
Environmental Promotion Task Force
Quality Assurance Task Force
CSR PromotionTask Force
To maintain the quality assurance systemTo ensure safetyTo improve quality controlTo manage proper labelingTo respond to complaintsTo ensure a common understanding of regulations
To maintain the environmental management systemTo promote energy conservationTo promote recycling of wasteTo promote the development of environmentally conscious productsTo manage environmental risksTo ensure a common understanding of regulations
To disseminate corporate ethics and complianceRisk management and information securityTo create an employee-friendly workplaceCorporate governanceStakeholder communicationContribution to society
Secretariat:CSR Department
Promoting CSR to meet the Expectations of Our Stakeholders
10
In April 2006, Unicharm launched an internal control system
development project within the Company to comply with J-SOX and to
improve business operations. The system is based on the Corporation
Law and the Corporations Law Enforcement Regulations in May
2006. Pursuant to the Law and regulations, Unicharm formulated
its basic policy on the implementation of an internal control system
and is developing the system to ensure the suitability of its business
operations.
Developing an Internal Control System for Reliable Management
The Unicharm Group aims to ensure that every employee abides by
laws and regulations, has high ethical standards and acts in line with
the corporate philosophy. Unicharm has formulated its Corporate
Behavior Guidelines to govern the conduct of its employees. The
Guidelines are communicated to employees through corporate
ethics and compliance training courses.
Corporate ethics and compliance training is offered on a
continuous basis in the form of group training and e-learning
courses. Two group training courses for general managers deal
with sexual and power harassment issues. Managers learn how
to respond to their subordinates when they ask for advice. They
also study harassment cases outside the Company. The courses
provide managers with an opportunity to reaffirm the importance of
day-to-day communication.
The training course for new
employees is comprised of
lectures and group discussion
on CSR and corporate ethics.
New employees are given
the opportunity to learn how
they are expected to conduct
t h e m s e l v e s a s w o r k i n g
people.
Unicharm expanded the scope of its e-learning courses to
Group company employees and has held three such courses. The
course is conducted regularly and deals with all possible situations
in the workplace, including sexual harassment, power harassment,
personal information management and accounting issues.
Employees request these courses on a continuous basis, saying
"studying actual cases helps us increase our awareness and gives
us confidence."
Awareness of Corporate Ethics and Compliance Shared Groupwide
Training course for new employees
at Unicharm Product Co., Ltd
By appointing persons responsible for information management in
each division, Unicharm enforces overall management of information,
based on its information security policy and the information security
rules.
The Company has also formulated personal information protection
rules for managing personal information entrusted to us by our
customers and complies with the Ministry of Economy, Trade and
Industry guideline to prevent information leaks. We will continue to
manage this information appropriately by ensuring absolute adherence
to the rules by our employees through training and education.
Reinforcing Information Security
The help desk for employees Rin-rin Hotline operated by Corporate
Ethics Office of CSR Department has maintained a system to allow
employees to take counsel immediately when they have questions
about corporate ethics and laws and regulations. The Hotline is
available to all Group company employees in Japan and accepts the
average of 5 counseling requests a month. We take great pains to
protect the privacy of employees who bring up issues so as not to
put the employee at a disadvantage.
When the Whistleblower Protection Act was enacted, Unicharm
helped its general managers to understand the content of the law
through the training session, issued a document that explained the
law to employees and reminded them of the existence of the Hotline.
Unicharm will maintain this system so that all Company
employees can seek counsel without worrying about any adverse
consequences.
Promoting Coherent Judgment and Behavior through the Employee Hotline
The intellectual property of the Unicharm Group both in Japan
and overseas is administered unilaterally by the Intellectual
Property Legal Department that develops and executes intellectual
property strategies, in conjunction with business and development
strategies.
Unicharm maintains an integrated system to protect
intellectual property rights on all of the products and technologies
held by the Group. Products of development, i.e. inventions and
design, are protected by patents and design rights, while products
of business, brand names, are protected by trademark rights. As
a result, Unicharm was commended as "one of the top companies
in the patent strategy index" by the Patent Office of Japan in fiscal
2006. Unicharm will not only take advantage of intellectual property
rights in products and technologies, but also promote activities to
protect its brands throughout the Group companies both in Japan
and overseas, thereby boosting its competitive edge. At the same
time, Unicharm will raise the level of its employees' knowledge and
activities to enable the Company to conduct business in a way that
gives due respect to other companies' intellectual property rights.
To this end, in addition to conventional study courses, the Company
has introduced e-learning courses as a means to strengthen its
educational programs on intellectual property (patents, trademarks,
representation, etc.). This was to increase learning opportunities
and expand the scope of participants and to reinforce its drive to
build a company that respects and utilizes intellectual property
rights.
Protecting Intellectual Property
11
Continuing to Be the Brand of Choice for Customers
Unicharm�s customer-first policy is a
basic concept that is applied to all its
business operations. It is essential for us,
not only as a manufacturer but also as
the high brand value which is able to win
the support of customers.
In product development, we have
been faster in listening attentively to the
voices of our customers than any other
manufacturer in the world, and this gives
us insight into the problems customers
have in their daily living,. Some customers
pinpoint hidden needs that are not
completely clear, even to the customers
themselves. To know such needs leads
us to "seeds" for new products.
Executive Officer, General Manager of Global Marketing Headquarters
Yukihiro Kimura
Quality Assurance
Unicharm has adopted a quality management system (QMS) based
on ISO 9001 standards to cover processes from marketing through
delivery, and we have established a groupwide quality assurance
system.
In the complaints processing process, customer complaints,
opinions and other feedback are shared. Unicharm then takes steps
to correct and revise problems through the plan-do-check-action
cycle.
Quality Assurance Policy and Structure
Safety assessment structure
In materials procurement, Unicharm has stipulated guidelines
on material ingredients and guideline on hazardous chemical
substances. A dedicated organization (Quality Assurance Office of
the CSR Department) conducts preliminary checks on materials to
assure safety, in order to eliminate chemical substances that exhibit
apparent harmful effects on the human body from infiltrating into
the environment.
System to Secure Product Safety
To convey accurate information to customers in a readi ly
understandable format, Unicharm has incorporated a representation
check system in the product design process. A dedicated section
confirms whether our representation of quality conforms to relevant
laws and regulations as well as voluntary standards, and whether
the representation gives misleading information or gives cause
for customers to misuse products. For new and significantly
redesigned products, the Global Marketing Headquarters, Customer
Service Office, Intellectual Property & Legal Department and CSR
Department hold a Communication Assurance Conference. By
utilizing each section's expertise, Unicharm is striving for user-
friendly representation through day-to-day improvements.
Appropriate Quality Representation from the Customer's Perspective
The Customer Service Office receives inquiries about product
performance, requests for consultation on purchasing judgments,
questions on product use and various other feedback from
customers. Unicharm has committed itself to prompt and sincere
response to this valuable customer feedback to enhance customer
satisfaction. In July 2006, Unicharm declared its compliance with
the ISO 10002* standard and has promoted prompt and appropriate
customer service companywide, in compliance to the ISO standard.
The Company also stipulated a complaints processing policy in its
complaints processing document, in which Unicharm makes the
pledge to always respond to customer input sincerely and promptly.
This policy has been communicated to all employees.
Customer Service Office that Gives Optimal and Prompt Response to Customers
Customer Service Office
12
Motivating Employees to Work to Achieve an Affluent Lifestyle
Since 2004, Unicharm has followed
a management method called SAPS
management. Fiscal 2006 was the year that
witnessed the consolidation of the Human
Resources Development Depar tment
and the SAPS Promotion Of f ice and
the establishment of the new Global
SAPS Human Resources Development
Department. The year was marked by
aggressive promotion of SAPS management
in human resources development.
Unicharm enter tains a human
resources policy in which personnel must
fulfill the three roles of planner, executant
and manager at the same time. To develop
human resources equipped with self-
initiative and executive ability, Unicharm
has also focused its efforts on restructuring
educational programs based on SAPS
management.
Executive Officer, General Manager of the Global SAPS Human Resources Development Department (from April 1, 2007)
Yasushi Akita
Human Resources Development
Sharing successful cases at the global levelPranee Sitthiyanun Global Marketing Headquarters
In Japan, I was able to have opportunities to learn about a
market I had never experienced before and to communicate
with people of various backgrounds and experiences. When
I return to my home country, I would like to make use of this
experience.
In the future, I would like to share my experience in my
home country with employees in Japan.
Workplace that brings out latent facultiesYoshihito Sato UBS Management Service Center
I am working in an excellent environment where requests
from the disabled, such as a request for a barrier-free
workplace, are quickly met.
I find it fulfilling to work in my office, because I
have the opportunity to challenge new skills, in addition
to opportunities to develop capabilities and skills in my
areas of aptitude.
Making good use of my willingness to work and experienceYutaka Morita Corporate Sales, Healthcare, Home Care Promotion Department, Sales Headquarters
I am serving in the same department and continuing the same duties as before my retirement, and therefore I would like to transform my experience into resources for my job. Because senior expert employees are also subject to performance evaluations, I expect the Company to reflect
the evaluation of my work in my remuneration without differentiating me from regular employees. In my private life, I was able to attend a reunion held in my hometown for the first time in 42 years. I am leading a full life, enjoying both my work and personal life.
long-term objectives and concrete plans. Unicharm is creating an
environment where all
Group employees can
exhibit their abil i t ies
and persona l i t ies in
the right positions, by
establishing common
global s tandards for
recruiting and education.
Human resources development initiatives
Amid the fierce global competition of recent years, in order to be
a truly global company that can be highly valued and trusted by
the people of the world, it is necessary to procure capable human
resources from the world, and train and position them appropriately
regardless of race, nationality, gender or age. In fiscal 2006, the
Company held a conference with human resource personnel of its
subsidiaries in China, Taiwan, Thailand and Indonesia to examine
common human resources programs that can be utilized globally.
We shared current issues in recruiting and training, mid- and
Developing Global-Standard Human Resources
Members of human resource development departmentsof participating countries
13
Thinking aboutWhat We Should Do for the Earth and What We Can Do for SocietyAs a manufacturer of disposable products,
we position environmental activities as a
priority in Unicharm's CSR initiative.
" W h a t do you t h ink a b ou t
consuming large amount of resources
for paper diapers and other disposable
products?" This is the question we are
frequently asked by our factory visitors.
I always answer that we acknowledge
that we use a lot of resources, however,
we try our best to make quality products
in a spirit of conserving resources and
minimize such usage.
At the factory level, we have
been continuously spending our time
implementing efforts to eliminate waste
at the startup of a manufacturing line and
when switching over rolls of material. We
are also working on energy conservation,
by monitoring energy consumption in each
process. We have requested that suppliers
use the bare minimum of packaging and
have encouraged logistics companies to
cooperate in practicing "idling stop" for
trucks on standby.
At foreign subsidiaries, environmental
initiatives are implemented according to
the situation in each country. In the first
place, we work on consciousness-building
for our employees to ensure that Unicharm
manufactures good products without
generating losses. We are developing
environmentally-conscious plants, similar
to those in Japan.
Unicharm recognizes the importance
of communicating with local communities
in promoting environmental activities,
expanding business globally. We cooperate
with local governments and nearby
companies, and continue to work on social
contribution and assistance activities, and
enhance the Company's existence value.
Executive OfficerPresident and CEO of Unicharm Product Co., Ltd.
Masakatsu Takai
ECO CHARMING mark
Unicharm’s Eco-Label
* Through environmentally friendly products and
activities (=eco),
* Unicharm aims to become a company that comes up
with attractive new values (=charm) for consumers
Let’s beECO-CHARMING Unicharm!
Eco-label Vision (Unicharm in the future through its eco-label activities)
Eco-Label
Unicharm has developed its own eco-label called the
"ECO CHARMING" mark.
Eco-labels refer collectively to labels indicating
that products carrying the labels are environmentally
c o n s c iou s p r o du c t s . T he l a b e l s c a n s e r ve a s
selection criteria when consumers make decisions
on purchasing. At the same time, they represent
manufacturers'commitment to reducing environmental
impact.
The ECO CHARMING mark will be attached
to product packaging and used for public relations
activities and in-house awareness-raising activities as
the symbol of Unicharm's environmentally conscious
activities.
Product Development with a View to Reducing Environmental Impact from the Design Phase
14
Environmental Conservation
Facilities Accredited with ISO 14001 CertificationFacility Initial Certification
Oct. 17, 1997May 2, 2000Mar. 9, 2001Jul. 6, 2001Feb. 15, 2002May 10, 2002May 16, 2003Nov. 14, 2003
Kakegawa Business FacilityShikoku Central District FacilityFukushima FactoryKawanoe FactoryUnicharm Material Co., Ltd.Ohnohara FactoryKinsei FactoryThailand Factory
JQAJQAJQAJQAJQAJQAJQAJQA
FacilityDec. 1, 2003Mar. 5, 2004Mar. 12, 2004Apr. 9, 2004Sep. 3, 2004Mar. 4, 2005May 20, 2005Jun. 3, 2005
Mie FactoryItami Facility
Initial CertificationSGSJQAJQAJQAJQAJQAJQAJQA
Certified byCertified byTaiwan FactoryToyohama FactoryDevelopment District FacilityHead Office District FacilityUnicharm PetCareCorporationKokko Paper Mfg. Co., Ltd.Uni Care Co., Ltd.
Chaired by President and CEO of Unicharm
Environmental Task Force, CSR Committee
Environmental Management Structure
Office : Environmental Promotion Office, CSR Department
EnvironmentalProduct
Working Group
EnergyConservation
Working Group
WasteRecycling
Working Group
Reducing environmental impactWe will endeavor to conserve resources and energy, reduce waste and promote recycling for the future of the global environment.
1
Compliance with laws, regulations and voluntary standards2
3 Establishing environmental behavior guidelines
Developing environmentally conscious products and servicesWe will promote R&D and technological development initiatives in the cause of both environmental preservation and the creation of new values and offer products and services that have lower impact on the global environment.
4
Disclosing environmental informationWe will communicate our environmental policies and environmental management efforts appropriately to society.
5
Enhancing environmental awarenessAs a member of society, we will take an active part in, and support, environmental protection activities and strive to raise peopleユs awareness of environmental protection through public relations and awareness-raising activities.
6
Environmental Policy of the Unicharm Group
We will determine the impact of our operation on the environment, establish environmental behavior guidelines and implement the guidelines efficiently.
We will abide by the relevant environmental laws, regulations and agreed-upon requirements and strive to support safe lifestyles for the human race through our business operations.
Unicharm hopes that the people of the world can enjoy health and experience the joy of living through the products and services we offer.
At the same time, by being sincere in taking responsibility as a company that supplies disposable products, Unicharm is dedicated to building an environmentally friendly, recycling-oriented society with a view to creating new values and the sustainable development of society; in this it aims at a good balance between a comfortable lifestyle and protecting the global environment.
Behavior Guidelines. While the Company is sincere in accepting
responsibility for supplying disposable products, the Policies codify
our awareness and actions for achieving a recycling-based society.
Unicharm has formulated the Unicharm Group Environmental Policies,
consisting of environmental policies and environmental behavior
guidelines, in accordance with the Unicharm Ideals and the Corporate
Unicharm's Environmental Policy
was required to redress its previous waste disposal practice. We
have taken the appropriate remedial measures, while seeking advice
from the competent administrative authorities. To confirm that waste
is properly treated, Unicharm has audited all of its manufacturing
contractors.
Led by the Environmental Task Force, the Unicharm Group endeavors
to reduce the impact of the business operations of the Group on the
environment and to prevent environmental risks based on ISO 14001.
In fiscal 2006, Unicharm received one administrative
recommendation and one notification. In one case the Company
Risk Management Based on ISO 14001
Unicharm has positioned environmental activities as a priority CSR
issue.
The Company has established its Environmental Task Force
under the CSR Committee in charge of groupwide CSR initiatives
and implements activities through a top-down approach. In line
with its action plans, Unicharm implements those environmental
activities. For critical issues such as product environment, energy
conservation, and waste recycling, theme-specific working groups
have been established.
Top-Down Structure for Promoting Environmental Activities
15
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