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1 Corporate Social Responsibility Report DIGEST 2008

2 INDEX CSR REPORT 2008 Editorial Policy Greetings from Top Management Corporate Philosophy & Relationship with Stakeholders Mizuno Group Topics in Fiscal 2007 CSR Vision Our CSR Activities For Customer Confidence and Satisfaction Hand in Hand with Employees Social Action Program Communication with Stakeholders Environmental Policy Development of Environmentally Friendly Products Product Examples Environmental Objectives in Fiscal 2008 GRI Guidelines Comparison Corporate Data Back cover Mizuno CSR Report 2008 introduces CSR initiatives taken by the Mizuno Group during fiscal 2007 (April 1, 2007 to March 31, 2008). In preparing this report, we have made our utmost efforts to make it easy to understand. Since we plan to issue the CSR Report annually, we appreciate your comments, questions and suggestions regarding this publication. Corporate Social Responsibility Report 2008 This booklet(digest version) will provide you with information of Mizunoʼs CSR activities in both Japanese and English.

3 Greetings from Top Management In 2006, Mizuno Corporation celebrated its centennial and kicked off a new management scheme for the next century. Under the new scheme, the Corporation unified its brand logos, and in 2007 adopted the following brand and management slogans: NEVER SETTLE and Inspiring and Exciting, respectively. Upholding these slogans, we will continue our utmost efforts to develop new centennial brand products that are highly attractive and appealing, and that are desired by our customers and end-users. To satisfy user demands, we will concert our efforts to produce merchandise of exceptional originality, innovative functions and sophisticated designs. It is my sincere hope that our stakeholders will continue to support our initiatives in these efforts. Business operation based on CSR Our corporate philosophy is to contribute to society through the advancement of sports and quality sporting goods. We have constantly worked to fulfill this philosophy by fostering a corporate culture that stresses fair play, friendship and a fighting spirit, a corporate culture that rejects any unfair act under any circumstances. To firmly maintain this corporate culture, we take various initiatives in the following nine areas: corporate governance, risk management, compliance, internal control, environmental protection, customer satisfaction, stakeholdersʼ satisfaction, disclosure to stakeholders, and social contribution. Although we seek optimal balance among the nine areas of our CSR activities, during this fiscal year we will place particular priority on reinforcing the risk management structure, establishing an internal control reporting system in compliance with the Financial Instruments and Exchange Law, enhancing the CSR procurement system in the global market in line with the CSR Procurement Code, and promoting environmental protection campaigns at employeesʼ households. Initiatives for conservation of global environment Nowadays, we frequently hear reports about abnormal weather observed all over the world. As the most striking example of such abnormal phenomena, we often see reports about rapidly melting Arctic ice sheets, a fact that attests to the progress of global warming. The latest report of the Intergovernmental Panel on Climate Change (IPCC), which was honored with the 2007 Nobel Peace Prize, virtually asserts that human activities are the primary cause of global warming. The IPCC report also predicts that climate change and abnormal weather will even exacerbate if we all continue our present lifestyles. To protect the global environment, in 1991 Mizuno initiated the Conservation of Resources and Environmental Wave 21 (CREW 21) campaign, involving all employees. By revising the Mizuno Environmental Policy, which was adopted in 1999, we have been augmenting our global environmental protection activities based on the firm belief that it is the obligation of us sports-related businesses to preserve clean air, crystal-clear water, and a sound natural environment favorable for sports activities. During fiscal 2007, Taiwan Mizuno obtained ISO certification, the second Group company outside Japan to be so honored, the first being Shanghai Mizuno. To promote global environmental protection, we are taking various practical measures in our daily business activities. For instance, we have begun using recyclable plastic cups at golf tournaments organized by Mizuno. Used cups will be recycled into a material for equipment to be used in the next yearʼs event. Moreover, we launched a recycling campaign for sports uniforms that we supply to schools. We collect used uniforms by setting collection boxes at schools nationwide. Collected uniforms are then recycled into synthetic fibers for use in various sportswear. 2

4 Corporate Philosophy & Relationship with Stakeholders Corporate Philosophy Corporate Philosophy The realization of Mizuno as a Global Company Creating the new 100 year brand Long Term Management Policies Company Policies for fiscal year 2007 To contribute to society through the advancement of sports and quality sporting goods Cultivating a corporate culture we take pride in Sport plays a vital role in helping people lead a prosperous and comfortable lifestyle. By making determined efforts to providing better sporting goods through our manufacturing and marketing practices and by continuing to contribute to the promotion and development of sport, we are strongly committed to contributing to society. Relationship with Stakeholders To achieve our CSR vision, Mizuno focuses on communication with various stakeholders in promoting our CSR activities. Supplier We will aim for fair dealings with our vendors and increased "CSR" procurement. Retailers We will aim to coexist and prosper together with our clients as a partner that can be trusted. Shareholders / Investors We will continually return profits to our investors and perform proper disclosure. Society We will actively perform social activities that make use of Mizuno's distinct characteristics. Media We will disclose corporate information to all of our stakeholders in a timely and appropriate manner through appropriate channels. Customers We will make every effort to offer consistently high quality and safe products, underscoring our recognition that the customer comes first. Children, Our Future We will contribute to healthy growth and future peace through sports. Employees We will aim to create a mechanism where our employees and the firm can grow together. Compliance Mizuno Group will co-exist with stakeholders in our corporate activities, activities that do not allow any unfair acts that go against our ethics and compliance activities. NGOs / NPOs We will work together with NGOs and NPOs, making the most of Mizuno's distinct characteristics to resolve a variety of issues. Government We will follow all laws and international rules, and maintain a healthy relationship with government. 3 Natural environment Mizuno Group recognizes that all of our corporate activities affect the environment, and we are committed to contribute to the natural environment and its preservation.

5 Mizuno Group Profile of the Mizuno Group The Mizuno Group, comprising Mizuno Corporation, its 16 subsidiaries and four affiliated companies, is primarily engaged in the manufacturing and marketing of sporting goods, including baseball, golf and other sports equipment, sportswear and footwear. The Group also operates sports facilities, including golf schools and futsal (five-a-side soccer) courts. * July 14, 2008: MIZUNO CORPORATION AUSTRALIA PTY.LTD. was established. (The company begins selling golf equipment in August 2008 and other types of sports equipment in January 2010.) Marketing of sporting goods MIZUNO USA, INC. MIZUNO CANADA LTD. MIZUNO (TAIWAN) CORPORATION MIZUNO (CHINA) CORPORATION MIZUNO CORPORATION OF HONG KONG LTD. Other businesses SHANGHAI MIZUNO CORPORATION LTD. THAI SPORTS GARMENT CO.,LTD. Financial data (Consolidated) Net Sales Information Net Income (Loss) Information Net Sales Net Income (Loss) Fiscal Year Fiscal Year Net Sales by Territory FY2007 Sales by Product Category FY2007 Asia. Oceania Europe North and South America Japan Total Others Ski and Mountaineering Footwear Sports wear Total Baseball Golf 4

6 Topics Topics in Fiscal th IAAF World Championships in Athletics in Osaka Based on the official partner agreement with the International Association of Athletics Federations (IAAF), Mizuno provided support for the 11th IAAF World Championships in Athletics, held in Osaka in August The Corporation provided various services, along with uniforms, shoes and accessories for official staff and volunteers at the event. For both official staff members and volunteers, we supplied Eco-Dry Honeycomb T-shirts, whose fabric was made from recycled PET bottles. In producing these T- shirts, in addition to environmental friendliness, we considered the event being held in August, the hottest season of the year in Japan. To ensure that wearers would feel comfortable and dry, we knitted fibers in a way that made the T-shirts more efficiently absorb and remove perspiration from the skin. As volunteer staff members, many employees of Mizuno helped operate the 11th IAAF World Championships. Those volunteers from Mizuno ranged from a young employee who joined the Corporation only two years before to a senior employee who had served Mizuno for over 36 years. Supporting the World Championships, Mizunoʼs employees shared the joy and excitement of sports with athletes and other related parties. We will continue supporting such sports events to realize our management philosophy: to contribute to society through the advancement of sports and quality sporting goods. Messages from Employees Serving as Volunteers My wife and I decided to serve as volunteers since we hoped to participate in the international sports event and see it firsthand, rather than watching it on TV. Despite the hard work and long working hours, which sometimes continued from dawn to midnight, we both had valuable experiences. Thanks to a kind consideration of the Secretariat, we were also given an opportunity to watch races. Next time, we hope to serve as volunteers at Olympic Games. 5

7 Meetings of User Monitors Enhancing Customer Satisfaction In October 2007, Mizuno held the first meeting of user monitors with the aim of enhancing customer satisfaction, one of the nine CSR areas selected by Mizuno. To the meeting held at Mizunoʼs Osaka Head Office, we invited six monitors, including opinion leaders, representatives of consumer associations, and members of other companiesʼ customer service centers. From Mizuno, staff members responsible for handling customer and end-user inquiries attended the meeting, including Managing Director Kitano and General Manager Kuramoto of the Quality Assurance Division. During the meeting, we received valuable opinions and comments from monitors regarding our management of customer and enduser inquiries and their satisfaction survey methods. Since the meeting was very helpful for determining our initiatives to enhance customer satisfaction, we plan to hold such meetings periodically. Message from the Organizer of the Meeting At the Mizuno Usersʼ Service Information Center, we respond to usersʼ inquiries, comments and suggestions regarding our products and services. We are working to respond to usersʼ remarks accurately and cordially in a timely manner, while at the same time trying to keep in mind usersʼ perspectives. The comments we receive from users will be reflected in improving our products and services. At the same time, we are fostering our employeesʼ awareness of the importance of user satisfaction. The goal of our user service is to gain usersʼ happy smiles. Party for Mizuno Employees and Mizuno Track Club Members Sharing the Joy of Sports with Employees In May 2007, Mizuno held a party at the Mizuno Osaka Head Office, inviting employees, their families and Mizuno Track Club members. Held a few months prior to the 11th IAAF World Championships in Athletics in Osaka (August 25 to September 2), the party was designed to provide employees and their families with an opportunity to meet with Japanʼs top athletes and promote friendly exchanges between our employees and the Mizuno Track Club members. Eight athletes, including Shingo Suetsugu, who took part in the IAAF Japan Grand Prix in Osaka on the previous day, attended the party, together with a total of about 100 employees and their families. Inviting a comedian from Yoshimoto Kogyo Co., Ltd. (a comedy company) as the master of ceremonies, the party was very exciting and enjoyable. Message from the Partyʼs Organizers Over 100 employees and their families joined the party and enjoyed talking with members of Mizuno Track Club in person. We planned this event to cheer on the athletes and encourage them to achieve their best records at the 11th IAAF World Championships in Athletics in Osaka in 2007, as well as at the Beijing Olympics At the same time, the party provided employees and their families with a rare opportunity to meet with star athletes. Inspired by these top athletes, some children who attended the party soon after began practicing track events. As organizers, we were extremely happy to see participants being excited to meet with superstars. Message from a Participant I attended the party with my children. Since I was a member of an athletic club in my student days, I often take my children to sports events. This, I believe, influenced the childrenʼs decision to practice track events. The party at Mizuno provided us with a truly rare opportunity to meet and talk with Japanʼs top athletes. My children were extremely excited to have such a valuable opportunity. I really hope that such parties will be held annually, hopefully with a comedian as MC. 6

8 CSR Vision CSR Vision Mizuno Group has always worked to fulfill its corporate philosophy. As a concrete approach to doing so, we focus on the promotion of CSR by creating a corporate culture that thoroughly emphasizes fair play, friendship and fighting spirit, refusing unfair acts, while working proactively to help conserve the global environment and enhance communication with various stakeholders around us. We have set out three themes and nine areas for a balanced achievement of our CSR vision. CSR 3 Themes Realizinga corporate philosophy Fair corporate activities Initiatives for social problems Realizing a corporate philosophy Contributing to society through the advancement of sporting goods and the promotion of sports. We will deal with a variety of issues in compliance, corporate ethics, accountability and disclosure etc., and undertake more transparent and fair corporate activities. We will implement initiatives that make use of Mizunoʼs distinct characteristics to resolve a variety of issues such as human rights, labor issues, education through sports, environmental issues, etc. CSR 9 Areas Social Contribution Disclosure to Stakeholders Corporate Governance CSR 9 Areas Compliance Risk Management Internal Control Stakeholders Satisfaction Customer Satisfaction Conservation of the Environment 7

9 Our CSR Activities At Mizuno, each employee is committed to CSR activities at his or her own workplace. As a spokesperson for Mizuno, I prepare PR materials and disclose corporate information in a proper and timely manner. Since sporting goods have relatively short lifecycles, we launch new products frequently. Although I am extremely busy preparing for announcements of new product lines each time they are launched, I also feel that my work is very rewarding since the information I offer helps customers purchase our products. I hope to continue making efforts to enhance our customer satisfaction. I respond to usersʼ calls regarding our services at our flagship and other retail shops. Based on my experiences as a shop assistant, I respond to users over the phone as if we were communicating face-to-face. In addition to answering their inquiries, I often offer detailed information on our product lines and shop fairs. I also try my best to give a favorable impression of our brand. I feel happiest when users who made phone calls actually visit our shops. I am working to resolve various problems related to product quality for the entire Mizuno Group. My primary task is the management of usersʼ comments, suggestions and complaints about our products, along with other information regarding our product quality. I also work to promote quality improvement of our products and services by incorporating usersʼ opinions. In addition to product safety, I believe that users demand high reliability and durability for our products. It is my sincere hope that I can help promote customer satisfaction through my daily services. This spring, I was appointed as the accounting and general affairs manager at this sales office. Placing the utmost priority on enhancing customer satisfaction, I survey and collect marketing information and provide it in forms of a database and s to our retail shops and marketing staff. In this way, I support the marketing activities of our retail shops and marketing staff. At the same time, I encourage our marketing staff to become truly professional in their respective business. I will continue helping them by creating a favorable environment for their day-to-day operations. In response to requests from various sections of Mizuno Corporation, I prepare a database, help data exchanges, promote in-house IT education, and answer inquiries about various in-house online systems. By improving information technology of Mizuno, I hope to help facilitate our business operations and improve business efficiency. I believe that these efforts will ultimately help enhance the quality of our customer service. By developing and introducing cutting-edge technologies, I am striving to enhance business efficiency and reliability, so as to gain greater customer trust in Mizuno. I am responsible for inventory control and logistics management. My primary concern is to deliver to our customers their desired items in a timely manner. I also clean streets around our operation regularly and engage in other corporate citizenship activities together with other staff members. Moreover, we sometimes invite schoolchildren to tour our facilities. On such occasions, I explain our business and social contributions that we are committed to through our business activities. I will continue working in logistics and inventory control, upholding the motto: Greater accuracy, higher speed, and lower cost. 8

10 For Customer Confidence and Satisfaction Placing our top priority on our customers, Mizuno Group is striving to consistently offer quality products that meet strict safety requirements. Mizuno Quality Policy Mizuno Corporation and Mizuno Group are committed to offering quality goods for the satisfaction and trust of customers. Additionally, the company is committed to disseminating accurate information and to humbly listen to the opinions of customers. Mizuno Corporation and Mizuno Group are committed to the following: 1. Offering high-quality goods and services for the satisfaction of customers 2. Offering products with the utmost in safety and quality and striving to maintain and improve products Offering accurate quality information in accordance with internal, national and international regulations. Taking on board the opinions of customers and applying them to products and services Complying with associated laws, ordinances and internal regulations, as well as upholding social requirements Continuously revising and improving quality assurance systems on a regular basis. Based on VOC Voice of Customer (VOC) messages (via phone, letters, s etc.) are directly or indirectly sent to Mizuno Userʼs Service Information Center (MUSIC), and compiled there. Inquiries and complaints regarding service are handled in cooperation with relevant sections, while all complaints regarding products are sent to the Quality Assurance Division that is responsible for research and resolution of such complaints. Important information received via VOC, such as product-related complaints, is closely examined to identify problems and develop measures for prevention of reoccurrence. Based on the examination results, instructions for improvement of products and systems are developed and provided to relevant sections. The Quality Assurance Department, comprised of MUSIC and the Quality Assurance Division, is an organization that is independent of other sections engaged in sales, planning and development and serves as a contact point with customers. Breakdown of number of acceptance (FY2007) Other Opinion Complaint Other Number of acceptance inquiries Golf Baseball Outdoor Swim Ball game Walking Sports wear 9

11 Mizuno Declares that It Conforms to ISO 10002: Quality Management _ Customer Satisfaction _ Guidelines for Handling Complaints in Organizations On April 1, 2006, Mizuno declared that our system for handling user complaints conforms to ISO 10002, the Quality Management _ Customer Satisfaction _ Guidelines for Handling Complaints in Organizations (selfdeclaration of conformance with ISO 10002). Mizuno was the first in the sporting goods industry to issue the self-declaration. To declare the conformance, in addition to reviewing in-house quality management systems, Mizuno reviewed and revised various related internal codes. Moreover, we established in-house user service promotion committees in all sections responsible for handling user complaints. We are also improving the skills of our staff members in handling user complaints and user services through more effective use of our internal control system. By listening to usersʼ opinions humbly, we will continue to reflect their views in our management and promote trustworthy business activities. Mizuno Ranked the Best Company in Terms of Responses to Consumer Inquiries As a result of the questionnaire survey regarding enterprisesʼ responses to consumer inquiries, conducted by the Kansai Consumer Support Organization from August 16 to October 20, 2007, Mizuno was ranked the number one company in terms of responses to consumer inquiries. The survey targeted corporate sections handling consumer inquiries in the major enterprises listed on the first section of the Tokyo and Osaka Stock Exchanges. The questionnaire comprised a total of 59 questions regarding [1] CSR and compliance, [2] responses to consumers, [3] hearing and reflecting the Voice of Customers (VOC) in corporate management and [4] risk management. A total of 173 enterprises answered the questionnaire out of 1,352 who received the questionnaire forms. Disseminating Product Information We use a wide variety of means to disseminate our product information, including catalogues, leaflets, instruction manuals, websites, advertisements and news releases. The Mizuno Usersʼ Service Information Center also offers product information. Using such diverse channels, we proactively disseminate helpful information for users. On our website we have prepared a page to introduce hints for long using Mizuno products by preventing possible accidents likely to be caused by misuse of our sports equipment. Since we particularly receive many inquiries regarding sports shoes and swimming suits, we offer meticulous information regarding the selection of such goods and maintenance methods. We also provide practical instructions on the use of sports equipment that involves risks of accidents if not handled properly. 10

12 Hand in Hand with Employees Human Resources Basic Philosophy At Mizuno, we strive to develop our Corporation into a strong and constantly evolving organization by enhancing the value of each employee, regarding him/her as our essential human resource. Our basic personnel policies include [1] thorough implementation of the merit system, [2] skill-and-ability-based compensation system, and [3] fair employee evaluations and enhancement of their motivation. We believe that building employeesʼ capacity and enhancing their value as human resources will benefit the Company in the long term skill-and-abilitybased compensation system develop enhancing the value of each employee thorough implementation of the merit system strong organization fair employee evaluations and enhancement of their motivation constantly evolving organization develop Employment Situation Person Number of Employees(Consolidated) Number of Employees by Region (Consolidated) New Employees (Mizuno Corporation) Fiscal Year North and South America Japan Asia Total 5,731Person Europe Fiscal Year Graduates from junior colleges/technical colleges Graduates from universities/graduate schools Starting Salary: 205,000YEN Person Personnel Evaluation System and Seminars 11 Establishing the Creator of the Year System At Mizuno, we regard our marketing staff engaged in wholesales as creators who provide our clients with optimal solutions. Since fiscal 2006, Mizuno has been awarding marketing staff members with the best achievements. Under this new system, called the Creator of the Year system, as a result of rigorous screening, five staff members were awarded in fiscal 2006, and another five in fiscal To improve their marketing proficiency even more, four awardees from fiscal 2006 were dispatched to Atlanta, New York and other American cities for a week during the summer of During the tour, the awardees inspected sporting goods markets in the United States. Employment of Disabled Workers The percentage of disabled employees in fiscal 2007 was 1.87%, compared with 1.8% required by the applicable Japanese law. At Mizuno, disabled employees work with healthy workers in the same workplaces. Seminars The Mizuno Educational Guidelines stipulate that Mizuno shall develop human resources constantly and systematically from a long-term perspective, in recognition that education consists in motivating employees and enhancing their awareness of their respective roles. Seminars Seminar for new employees Seminar for new employees half a year after joining the Corporation Seminar for third-year employees Career development seminar for 30-year-old employees Seminar for new medium management Seminar for managers Career development seminar for 50-year-old employees

13 Rewards for Employee Inventions To encourage employees to develop innovative and original devices, materials and technologies, Mizuno has built a reward system for employeesʼ original inventions. In compliance with the Patent Law, we fairly evaluate employeesʼ inventions, and as incentives we provide employees with rewards. The greatest sum of reward money that Mizuno has offered to date is 1 million yen per invention. Meister and Craft Titles To improve our employeesʼ technological levels and foster artisans of distinguished ability, Mizuno honors experts in specific technical areas with the titles of Meister and Craft. Along with the titles, special allowances are provided to such experts, who are expected to pass on their exceptional techniques to subsequent generations. At present, we have five Meisters and 63 Crafts. Technical Skill Tests To systematically develop employeesʼ skills and foster specialists in specific manufacturing areas, six factories of Mizunoʼs subsidiaries give technical skill tests to their employees. As of fiscal 2007, there were 78 experts who passed the first-class technical skill test and 59 experts who passed the second-class such test. Support for Employees Seeking an Optimal Work-Life Balance At Mizuno, we support employees seeking an optimal work-life balance by establishing various support programs. To reinforce support programs for parents who are fostering young children, we have prepared a plan for the Support Program to Foster the Next Generation through discussions with the in-house labor union and are taking concrete initiatives in compliance with the plan. Mizuno obtained the Kurumin mark, which is provided by the Ministry of Health, Labor and Welfare to enterprises that support the upbringing of the next generation. Number of employees who took childcare leave Number of employees who cut working hours due to childcare Number of employees who took family care leave Number of employees who cut working hours due to family care Number of employees who took half-day paid holidays Per-day number of employees who took paid holidays Fiscal Year Person day Benefit Programs Cafeteria Plan System Special Holidays in Every Five-Year Service Use of Expired Paid Holiday Right Employee Stock- Ownership Program Defined Contribution Pension Scheme (Japanese version of 401(k)) Under the Cafeteria Plan system, employees can select from among diverse welfare menus within specified points. Mizuno pays part of the expenses incurred by respective welfare menus. After five years of service at Mizuno, all employees are provided with special holidays and a travel allowance. This system is designed to revitalize our employees every five years. Employees who did not take paid holidays within specified periods can still take paid holidays even after the period is over in the following cases: illness/injury of employees, care of their ill family member(s), volunteer activities, sports activities, etc. To support employees in building their own assets, Mizuno provides incentive money to the employees who autonomously purchase Mizunoʼs stocks on a regular basis. To enhance employeesʼ awareness of CSR, Mizuno adopts social responsibility investment (SRI) in its investments under the defined contribution pension scheme." Encouraging Club Activities To inspire employees to improve their physical strength, mental energy and character, Mizuno encourages sports and cultural activities at respective workplaces. (Excerpted from the Mizuno Sports Club Code) In fiscal 2007, Mizunoʼs operations in Japan had the following sports/cultural clubs: baseball, cycling, soccer, skiing, softball, tennis, soft tennis, triathlon, basketball, badminton, volleyball, soft volleyball, boating, rugby, judo, athletics, golfing, and tea ceremony*. * Not all operations have all the clubs listed above. 12

14 Social Action Program Mizunoʼs basic concept regarding social contribution Mizunoʼs corporate policy for social contribution is completely based on our corporate philosophy. Sports and sport-related activities play an important role in further promoting the well-being and affluent life of humans. In this regard, Mizuno will continue to work on initiatives to tackle challenges relating to human rights, labor-management relationships, environment and many other issues to better serve society as a corporate citizen. Mizuno Victory Clinic Mizuno organizes a program called Mizuno Victory Clinic. This program comprises various events such as sports training, clinics, workshops, lectures, autograph sessions, and talk shows. For these events, we invite leading athletes, like Shingo Suetsugu and Kenji Narisako, who are employees of Mizuno, along with other contracted athletes from a wide range of sports. The events are usually held jointly with our customers (retailers of sporting goods) as part of the fairs held by the retailers. In addition to increasing the number of end-users loyal to the Mizuno brand, the events of the Mizuno Victory Clinic are effective in promoting sports in local communities. Instructors of the Mizuno Victory Clinic are selected from among 240 total athletes on the list, all having participated in world-class events such as the Olympic Games and IAAF World Championships. During fiscal 2007, over 200 Mizuno Victory Clinic events were organized. During fiscal 2008, we plan to hold 330 such events nationwide. We will further improve the contents of these events by developing original programs that only Mizuno can offer. Provision of subsidies through two foundations Mizuno is operating the Mizuno Sports Promotion Foundation, established in accordance with the wishes of the late Rihachi Mizuno, our founder; and Mizuno International Sports Exchange Foundation, established by Kenjiro Mizuno, our former Chairman. These two foundations grant subsidies based on their respective purposes. In addition, these foundations also provide the Mizuno Sports Mentor Award and the Mizuno Sportswriter Award. The total amount of subsidies granted by the foundations is 5.1 billion yen as of Eco-friendly Golf Tournaments At golf tournaments organized by Mizuno, we have adopted various eco-friendly measures, including the use of emission-free electric carts and classification of refuse to enable recycling. Still another measure we took for a Mizuno Classic golf tournament held in November 2007 was the use of completely recyclable plastic cups for galleries. The cups were collected on the site and recycled into polyester fibers by using Eco Circle, a polyester recycling system developed by Teijin Fibers Limited. Using the recycled polyester, we will produce equipment for golf tournaments to be held during fiscal By recycling refuse generated in sports events, we intend to make our golf tournaments and other events even more eco-friendly. Baseball Equipment Production Class for Children During school summer vacation, Mizuno organized a baseball equipment production class for children at the Baseball Hall of Fame and Museum (Bunkyo Ward, Tokyo). At the class, experts from Mizuno Technics Corporation, Mizunoʼs manufacturing subsidiary, demonstrated how to carve timbers into baseball bats. Watching a timber being carved into a bat, children in attendance learned bat production processes. Also, twelve pairs of parents and children, who were previously selected from among the applicants, actually produced baseball gloves following instructions provided by Mizuno experts. To the great pleasure of us organizers, many participants truly enjoyed the class. 13

15 * At the end of April 2008, we participated in the tree planting ceremony at the Woods for Bats. To grow Woods for Bats On May 20, the Acorn Society, an NPO dedicated to tree planting, organized an event of planting seedlings of Fraxinus lanuginose (tamo), the timber of which is used as a material for baseball bats, in forests in Takayama, Gifu Prefecture. Meanwhile, Mizuno Technics Corporation, Mizunoʼs manufacturing subsidiary, is working with Oak Village, a timber processing company, to produce and market key holders, mobile phone ornaments and other items using the timber that cannot be used for baseball bat manufacturing. Part of the sales of such items is donated to the campaign of fostering tamo forests. Cooperative Forest Conservation Activities As a member of the Ikoma-no-Mori Forest Consortium, Mizuno is promoting forest conservation activities in the Ikoma mountain range. The Consortium, comprising Osaka Prefecture, Higashi-Osaka City, Osaka Sangyo University and 20 enterprises, including Mizuno, is conserving and fostering forests in the Ikoma mountain range with the aim of reducing CO2 in the atmosphere. During fiscal 2007, Mizuno employees participated in two tree-thinning programs. Activities to promote AEDs AEDs, devices to provide electric shocks to treat hearts suffering spasm and enable blood to be pumped to the rest of the body, are now an indispensable item in sport activities and events. Mizuno has become a corporate member of Osaka Life Support Association that is promoting cardio-pulmonary resuscitation methods including AEDs. While supporting the Associationʼs activities, Mizuno is also providing employees with training regarding how to use AEDs and other related issues. In August 2007, Mizuno sponsored a symposium on the theme of sports and sudden death, organized by the Osaka Life Support Association, an NPO promoting cardiopulmonary resuscitation and other first aid methods. This symposium was designed to promote the use of automated external defibrillators (AEDs), devices that provide electric shocks to treat hearts suffering from spasms. On the day of the event, the venue, Nextage in Mizunoʼs Osaka Head Office, was filled with 150 enthusiastic audience members, who eagerly listened to the lecture and watched the demonstration of AED operation. Mizuno also co-organized AED seminars for the general public in November and for members of the Kansai Little League and Senior League in February We co-organized these seminars with NPO Osaka Life Support Association and Ohno Memorial Hospital, respectively. Protecting Baseball Players In May 2007, Mizuno launched chest pads for baseball and softball players. The chest pads are designed to reduce the risk of heart concussion that might be caused by a ball directly hitting the chest. While maintaining sufficient shock absorption performance that meets criteria set by the Consumer Product Safety Association, the chest pad is also lightweight and thin so as not to interfere with playersʼ movements. 14

16 Communication with Stakeholders Through various communication tools and activities, we are striving to help stakeholders further understand Mizunoʼs actions. Programs implemented in 2006 include creation of a video movie regarding Mizunoʼs efforts for environmental conservation, which was shown on various occasions such as trade fairs. A program to invite employeesʼ children to visit Mizuno offices was also held as one of the events commemorating Mizunoʼs 100th anniversary. CSR Report Mizuno publishes its CSR report on an annual basis to clearly and briefly communicate to stakeholders the CSR activities that Mizuno is conducting in economic, social and environmental areas. Reports of previous years are also available at CSR REPORT on Mizunoʼs website, and digest leaflets of the reports have been compiled and issued in Japanese and English. Video movie and leaflets regarding our environmental conservation activities A video movie and leaflets have been created as tools to briefly introduce Mizunoʼs environmental conservation activities to the public. These media are used widely on various occasions such as new product shows and various events, in addition to environmental education programs for employees. Newsletters for shareholders Newsletter MOVE is distributed to shareholders on a semiannual basis. This newsletter is designed to share with shareholders information regarding Mizunoʼs sales activities, new products, advertisement activities, and global information in addition to financial reports. Exhibition at Sportology Gallery Mizunoʼs Osaka Head Office features the Sportology Gallery, that is open to the public. The Gallery displays exhibits based on the history of Mizunoʼs environmental conservation activities, products that are environmentally friendly, sporting items that have historical values, models used by top athletes, sporting goods of innovative future design and other interesting items. 15

17 Health Information for Customers _ MarvisLand Special Report MarvisLand Special Report introduces topics concerning various sports and related activities with a particular focus on healthy lifestyles. Enjoy reading and finding clues for a healthy lifestyle. Web: (in Japanese) Shanghai Mizuno Newsletter To promote in-house communication and share information with employees, Shanghai Mizuno publishes the quarterly newsletter Kangle Tiandi and hands out copies to its employees. After launching the first issue in June 2007, the company had published four issues by the end of fiscal The newsletter carries various articles concerning in-house seminar programs, profiles of staff members, easy lessons in Japanese language, instructions on using PCs, and many other topics. Communication with employees The internally produced video letter Mizuno Video Communication is shown to employees on Tuesdays to share information, and training programs with certain topics are conducted at respective sections on Fridays to enhance knowledge development. Using these programs, business directions from top management are communicated and education regarding compliance and environmental issues are provided to employees. Permanent exhibition at Osaka ATC Green Eco Plaza Mizuno runs an exhibition booth at the Osaka ATC Green Eco Plaza, the first exhibition center for environment-related businesses in Japan. The booth exhibits how Mizuno is working on environmental conservation through development of eco-friendly products. The booth attracts many visitors including groups from elementary and junior high schools and companies, as a place for environmental education. 16

18 Environmental Policy Environmental problems are now on a global scale, so we are facing an extremely serious situation: global warming, the destruction of the ozone layer, acid rain, the pollution of the oceans, the depletion of tropical forests, desertification and so on. We have an obligation to pass on this irreplaceable earth to the children of the future in as beautiful a condition as possible. At Mizuno, part of our ethical norms of business is to clearly state that we have a commitment to give consideration to the conservation and care of the environment on a global scale. Together with this, we have decided that the Mizuno Environmental policy is that all of our employees will continuously and steadily strive to work together to perform voluntary activities that help conserve the environment. Mizuno acts as the Crew on a Spaceship called Earth This is the acronym of Conservation of Resources and Environmental Wave 21. Facing the 21st century, this company will shoulder its role as a crew member of Spaceship Earth practising activities that conserve the environment and resources under the title of Global Environment conservation Activities. Mizuno Environmental Policy Mizuno Corporation will promise to continuously promote the challenges of the followings under the slogan of Presenting a sound and healthy sports scene to people and to mother earth as well as we shall recognize that all of our corporate activity affects the environment and contribute to the conservation of the global and regional environment Will work to improve environmental impacts and prevention of pollution in all corporate activities. To this end, will set environmental objectives and targets in regard to the following items, and will establish and maintain the environmental management system, and will aim to achieve the objectives and targets by reviewing and improving periodically. (1)Energy saving and resources saving (2)Reducing and recycling of waste (3)Developing of environment-friendly products and services (4)Purchasing of environment-friendly materials, items, and commodities Will observe the requirements of relevant environmental legislations and regulations, agreements, etc. Will carry out environmental audits and work to maintain and improve environmental management system. Will work so that all employees will understand the environmental policy through environmental education, etc. and will work to realize the environmental policy by having all employees take part. Will release the environmental policy, the situation of environmental conservation activities, and environmental accounting to interested parties and the public. Akito Mizuno, President Mizuno Corporation 17

19 Development of Environmentally Friendly Products 6 Concepts for the development of environmentally friendly products Mizuno is aiming to develop products friendly to the environment under the following six concepts. (1) Development of product using recycled materials, (4)Development of products manufactured using ecologically friendly processes, (2)Development of products that conserve the environment (5)Development of products using cyclic materials, (3)Development of products that promote energy savings. (6)Development of products using semi-cyclic materials, Development of products using recycled materials Development of products that conserve the environment Development of products using semi-cyclic materials 6 Concepts for the development of environmentally friendly products Development of products that promote energy savings Development of products using cyclic materials Development of products manufactured using ecologically friendly processes We are emphasizing to the public that these are environmentally friendly products by using the Eco-mark and Mizuno Environment Label. This mark is given to products that Japan Environment Association has recognized as being environmentally friendly in all life-stages from production to disposal. This mark is given to those environmentally friendly products that clear Mizuno's own environmental standards. These marks are placed on the product package, price label and in catalogues. 18

20 Development of Environmentally Friendly Products Development of products using recycled materials Products using recycled materials in part or whole. The easiest concept to implement, high performance products can be made by combining recycled materials with other materials. Running shoes The artificial leather for our shoes uses fabric made from recycled PET bottles. Baseball ball This ball is made from wool yarn containing recycled acrylic yarn. School sportswear Made using the sweat-absorbing, quick drying Eco-dry Blister fabric which uses recycled polyester fabric for 70% of the cloth. Development of products that conserve the environment Products that do not have an adverse effect on the environment when using them or when disposing of them after use. Long-life products Bat for rubber-ball baseball This bat features long-life design; the part for hitting balls is replaceable. Replacement Area Walking shoes Made with a long-life design that allows partial repairs to be done easily. The heel part can be easily resoled.

21 Development of products that promote energy savings Mizuno has developed warm and cool sportswear using Breath Thermo -a revolutionary thermal material that generates heat, and Ice Touch -a fabric that absorbs sweat and keeps the skin cool and dry. By wearing such sportswear, consumers can reduce their use of heaters/air conditioners, thereby cutting back on energy consumption. We have also developed various energy-efficient products. Cool-feeling fabric Ice Touch Effectively expels vaporization heat and cools down the skin. Pitching machine This pitching machine, incorporating a compact motor, consumes less power. Heat-generating fabric Breath Thermo Effectively transform moisture into heat. As a raw fabric, its heating value is around three times that of wool (in-house comparison). Development of products manufactured using ecologically friendly processes Efficient use of Waste from products Products that do not produce any environmentally harmful waste during the production process. Products that are made while minimizing waste and toxic substances produced by the factory. Ozone-bleach towel To reduce greenhouse gas emissions, Mizuno bleaches towels with synthesized ozone. Accessories made (of wood) from unused parts of Baseball Bats Accessories made (of leather) from unused parts of Baseball Gloves Development of products using cyclic materials Products that are collected after use, retooled and reused. School sportswear Mizuno collects and recycles used school sportswear to produce synthetic fibers for use in sportswear. Development of products using semi-cyclic materials Products that are collected and retooled after use in the same manner as products using cyclic materials, but are then transformed into a different type of material before reuse. Sportswear parts made from recycled fabrics 20

22 Environmental Objectives in Fiscal 2008 In fiscal 2007, Mizuno launched a new environmental preservation plan with the target year set at fiscal The environmental programs to fulfill during fiscal 2008 will basically remain the same as those set in the previous year. For activities in fiscal 2008, however, we will introduce per-sales volume index number as a new indicator for curtailing CO2 emissions, industrial waste emissions, preparation of printed matters, and use of copy paper, cardboard and slips/vouchers. Since the total volumes of these items significantly fluctuate depending on changes in sales, we have decided to control the volumes of these items in terms of both total volume and per-sales volume. Environmental Policy Environmental Aspect Unit FY2000 Results Objectives for FY2008 Ratio compared to FY2007 Ratio compared to FY2000 Reducing Energy Consumption CO2 Emissions Per-sales volume index number 1.0%Reduction 17.0%Reduction points points Photo Copy Paper consumption Per-sales volume index number 1.0%Reduction 18.5%Reduction points points Cardboard box consumption Per-sales volume index number 4.3%Reduction 9.2%Reduction points points Resource conservation Printed matter onsumption Per-sales volume index number 2.0%Reduction 9.3%Reduction points points Paper consumption in Offi ce & IT Per-sales volume index number 1.8%Reduction 30.4%Reduction points points Water consumption (FY2002 Results) 1.0%Reduction 25.8%Reduction Ratio compared to FY2002 Reducing Waste industrial waste volume Per-sales volume index number 1.0%Reduction 15.3%Reduction points points Environmentally Friendly Procurement Green Purchasing Ratio in nonproducersgoods Promotion of local contribution and educational activities by Mizuno Environmental Policy Promotion of Environmentally Friendly Products and educational appeals in the event Making appeals to the public for the conservation and care of the environment in our events Ratio of environmentally friendly products in the total sales cases (FY2003 Results) Mizuno will review its definition of eco-friendly products and prepare environmentally sound operation guidelines. Through these and other efforts, we seek to increase sales of our environmentally sound products. 16 cases increase 133 cases increase Ratio compared to FY * Per-sales volume index number: index number of the volume of environmental load per sales (environmental impact/consolidated sales in Japan), assuming the level of fiscal 2000 to be 100 * Denominator of per-sales industrial waste volume: sales of manufacturing plants in Japan al consolidated sales: sales in Europe, America, Asia and Oceania * Domestic consolidated sales: global consolidated sales: sales in Europe, America, Asia and Oceania