Post on 05-Jun-2020
CSR Report
2013
Corporate Social Responsibility Report 2013
01 OHARA CSR Report 2013
Creating the Future for People and Society
Editorial policyWe have been issuing this report on an ongoing basis since 2006 to inform people of OHARA
INC.’s initiatives regarding Corporate Social Responsibility (CSR). OHARA uses such report, the title
of which was changed to “CSR Report” in 2009, as a tool to communicate with many stakeholders.
The 2013 issue features activities aimed towards realizing the “Long-term Vision 2020”, which
describes the future image of the OHARA Group, with OHARA “becoming a dream fulfillment
company which pursues innovation with customers”.
Organized in accordance with OHARA’s philosophy based on corporate principles, reports on
continuous efforts are provided. It is our pleasure if readers can become more familiar with
OHARA through reading this report.
Scope of reportThis report covers the activities of OHARA INC., including our subsidiaries.
* The figures in the financial reports, however, denote numbers that include the results of the Group companies (See
P. 26).
Reporting periodFrom November 1, 2011 to October 31, 2012* There are, however, some references to activities for FY2013.
Editorial policy 01
CSR as conceived by OHARA 02
Message from top management 03
Featured articles
Towards becoming a dream fulfillment
company which pursues innovation
with customers 05
Globalization 07
Establishing new business 08
Adding greater value 09
Human resource development and
organizational culture 10
Sincere activities 11
Harmony with society 15
Disclosure of information 16
Environmental protection 17
Employee respect 23
Corporate profile 26
01
CONTENTS
We value trust above all else, and using our proprietary high technology and advanced materials of the best quality, we are achieving innovation for the next generation and striving for further development.
02OHARA CSR Report 2013
Management PhilosophyThe OHARA Group is honored to keep on creating unique and new values in order to establish a strong company structure for its employees' happiness and for the prosperity of the society.
Vision StatementWith high aspirations for contributing to the creation of the future for human and society through technological advances, we will provide high quality, cutting-edge materials for use in the optical, electronics, and environmental and energy fields worldwide. Working closely with our customers, we will constantly pursue innovation and become the "Dream Fulfillment Company".
OHARA’s philosophy based on our corporate principles
Date of issuance January 2013
Previous issue: January 2012
Next issue: expected to be January 2014
Sincere activities p.11-14 Environmental protection p.17-22
Harmony with society p.15 Employee
respect p.23-25
Disclosure of information p.16
Reference guidelinesGRI’s “Sustainability Reporting
Guideline (version 3.1 (G3.1))”
Ministry of the Environment’s
“Environmental Reporting Guideline
(2012 version)”
Contact:General Affairs Department,
OHARA INC.
TEL: 042-772-2101
TEL: 042-774-1071
http://www.ohara-inc.co.jp/
Disclosure ofinformation
Harmony withsociety
Sincereactivities
Employeerespect
Environmentalprotection
Management PhilosophyVision Statement
Triple Bottom Line(Environment, Society,
Economy)
CSR as Conceived by OHARAⅡ
Realization of OHARA’s philosophy based on our corporate principles
OHARA’s philosophy based on our corporate principles
Disclosure ofinformation
Harmony withsociety
Sincereactivities
Employeerespect
Environmentalprotection
Management PhilosophyVision Statement
Triple Bottom Line(Environment, Society,
Economy)
CSR as Conceived by OHARAⅡ
Realization of OHARA’s philosophy based on our corporate principles
OHARA’s philosophy based on our corporate principles
03 OHARA CSR Report 2013
Progressing, challenging, and fulfilling dreams with you,
we aim to be a “dream fulfillment company”.
Message from top management
Regarding OHARA INC.
The OHARA Group’s management philosophy stipulates that the
OHARA Group contribute towards its employees’ happiness and
for the prosperity of the society by building a strong company
that continuously creates unique and new values.
Establishment in 1935, OHARA has developed businesses
centering on optical glass that supports key industries, while
responding to various changes of the times.
Through development and manufacturing of glass materials,
the OHARA has contributed to the development of optical,
electronics and environment and energy fields.
OHARA, which provides materials, can benefit the society only
by having customers use them. OHARA will contribute to the
creation of an abundant future society by realizing its customers’
technological innovation through provision of advanced
materials of the best quality.
Towards Long-term Vision 2020
The Long-term Vision 2020 indicates an ideal image that OHARA
aims to become in 2020 and is, along with its management
philosophy, a matter that should not be altered. Under the four
pillars - globalization, establishing new business, adding higher
value and human resource development and organizational
culture - the Long-term Vision 2020 envisions OHARA to become
a dream fulfillment company that pursues technological
innovation with customers. OHARA will formulate a medium-
term management plan and promote activities to realize the
Long-term Vision 2020.
1 2
04OHARA CSR Report 2013
CSR Initiatives
A “dream fulfillment company”, as raised in the Long-term Vision
2020, specifically means a company that aims to fulfill people’s
dreams and create an abundant future society by taking the
initiative in technological innovation with advanced materials
of the best quality. In order to become such a company, OHARA
has raised the following five items as OHARA’s principles based
on corporate ethics: sincere activities; harmony with society;
disclosure of information; environmental protection; and,
employee respect. The Company considers OHARA’s CSR to
be the realization of each of the above principles through its
business activities, which would lead to sustainable development
of companies and the society.
The key point of CSR activities lies in each employee who will
implement such activities. Therefore, we strive to improve the
work environment, such as by creating comfortable workplaces,
developing human resources and maintaining occupational
safety and health.
Raising employees’ awareness through compliance seminars, we
conduct various activities based on OHARA’s philosophy based
on corporate principles, such as regional cleanup campaigns,
factory tours, disclosure of information through a CSR report or
the like and environmental protection activities that are in line
with OHARA’s environmental goals.
The Medium-term Management Plan
With the goal of achieving the Long-term Vision 2020, OHARA
started Phase II (from November 2011 to October 2014) in
November 2011. Phase II raises conversion of business structure
and building of a new driver for growth as basic strategies.
Under the conversion of business structure, OHARA is optimizing
systems of development, manufacturing and marketing in order
to accelerate the business development in the growing Asian
markets. Under the building of a new driver for growth, OHARA
will strive to establish an incubation center and construct a
metabolic system towards long-term corporate growth.
FY2012 Initiatives
In March 2012, Taiwan Ohara Optics Material Co.,Ltd. was
established as a new production base. OHARA has been aiming
to establish a stable supply system with multiple production
bases in order to respond to the customers’ launching of
their overseas operations, as well as from the viewpoint of
BCP (Business Continuity Plan). In addition, OHARA has been
accelerating activities with the goal of creating new businesses,
starting with one involving next-generation lithium batteries,
centering on the incubation center. In the Long-term Vision
2020, environmental and energy field has been raised as a future
priority field going forward. OHARA will aim to provide “plus-one”
products (in which a new technology is added) mainly centering
on the use of production technologies for glass and glass
ceramics, which are OHARA’s specialty.
As a consequence of business activities, various environmental
impacts arise, such as energy consumption and generation
of wastes. Even with energy-saving initiatives, use of a certain
amount of energy is unavoidable for melting glass. To protect the
invaluable earth, OHARA will proactively contribute to improving
the global environment through the provision of advanced
materials in the environmental and energy fields.
Message to stakeholders
Aiming to be a “dream fulfillment company”, OHARA will steadily
promote activities in line with the medium-term management
plan based on the Long-term Vision 2020. Through various
activities to realize the dream, OHARA hopes to meet
stakeholders’ expectations.
This report has been issued for the purposes of having all
stakeholders understand OHARA’s thinking regarding CSR and
having better communication with such stakeholders. It would
be our pleasure to receive your feedbacks on OHARA’s business
activities and CSR initiatives. Your continued understanding and
support will be greatly appreciated.
President
Hirokazu Saito
3
4
5
6
05 OHARA CSR Report 2013
The Long-term
Vision
2020
To realize the Long-term Vision 2020, OHARA has been
developing business based on the new medium-term
management plan (Phase II), basic strategies of which
are “conversion of business structure” and “building
of a new driver for growth”. Under the “conversion of
business structure”, OHARA has been optimizing systems
for development, production and marketing in order to
accelerate business development in the growing Asian
markets.
In “building of a new driver for growth”, OHARA is aiming
to establish an incubation center and build a metabolic
system for the company’s long-term growth.
New Medium-term Management Plan (Phase II: from November 2011 to October 2014)
Towards becoming a dream fulfillment company
which pursues innovation with customers
We provide values to all
stakeholders through
realization of the “Long-term
Vision 2020”.
Globalization
From a Japanese company to
customers around the world⇨p7
Adding greater value
Pursuing cutting-edge materials of the
highest quality⇨p9
Creation of new business
Optical business, Electronics business And making
inroads into the third domain - environmental and energy
business⇨p8
Human resource development
Organizational culture
High commitment to helping build a better
society and the capability to execute reforms
⇨p10
Value Creation aimed by OHARA
Customers
Maximizing customer
satisfaction through
provision of advanced
materials of the best
qualityBusiness Partners
Co-existence and co-
prosperity towards sustainable
development through healthy
transactions
Shareholders and Investors
Maximizing OHARA’s
corporate value through
achievement of the Long-
term Vision 2020Employees
Providing a comfortable
work environment in
which employees can
have job satisfaction
Local communities
Environment
Developing innovative
technologies through the
environmental and energy
business
Harmonizing with local
communities through local
environmental protection
activities and plant tours
06OHARA CSR Report 2013
Fiscal year ending October 2014consolidated fi gure
35 billion yen or more
2.9 billion yen or more
5.0% or more
15.0% or less
Fiscal year ending October 2012(actual result)
24,437 22,700
26,000
7,223 7,700
9,000
[35,000]
[30,400][31,661]
1,518 1,600
2,900
5,000
4,000
3,000
2,000
1,000
0
Ordinary profi t(million yen)
Sales(million yen)50,000
40,000
30,000
20,000
10,000
0
Sales
Ordinary profi t
ROA
Debt/equity ratio
Optical businessElectronics businessCurrent income
Management Index
Fiscal year ending October 2013
Fiscal year ending October 2014
GlobalizationGlobalization
OHARA acts in various regions, such as Asia, Europe and North America in order to deliver products to customers all over the world.
OHARA OPTICAL (ZHONGSHAN) LTD.
In the midst of relocation of production bases of camera
makers, who are our customers, to China, OHARA Optical
(Zhongshan) LTD. was established as the third
production base for pressed optical lens blanks in 2002,
following such establishment in Taiwan and Malaysia.
Winning considerable trust of customers, its high quality
management at a level equal to that of Japan has
increased value of the OHARA brand and contributed to
job creation in local communities.
* Address: Guangdong, China
* Business description: Production of pressed optical
lens blanks
TAIWAN OHARA OPTICAL MATERIAL CO., LTD.
In 1986, Taiwan-Ohara Optical Co., Ltd. was established
as subsidiaries for production and sales of optical lens
blanks. In 2012, Taiwan Ohara Optical Material Co., Ltd.
was established as a glass manufacturing plant in order
to produce glass at a location closer to customers, and is
presently under construction.
OHARA is aiming for sales activities that leverage on high
quality, competitive costs and shorter delivery period by
having an integrated production base - from melting to
pressing glass - in Taichung.
Address: Huwei Township,Yunlin County 632, Taiwan (R.O.C)
Business: Production of optical glass
AddressA
07 OHARA CSR Report 2013
Creation of new business
Lithium-ion conductive glass ceramics
In the future society, efficient use of energy will be further
pursued. Accordingly, as the demand for storing electrical power
increases, larger capacity and higher level of safety of batteries
must be realized and good balance between the two must be
achieved. OHARA will contribute to social development by
applying the lithium-ion conductive glass ceramics technology,
and producing and selling “solid electrolyte” and “All Solid
Battery”, which would be essential in realizing a next-generation
lithium ion battery with large capacity and high level of safety.
Lithium-ion conductive glass ceramics (LICGCTM)
OHARA aims to develop a business with “plus-one” products, to which a new technology is added, using production technologies for glass and glass ceramics that are OHARA’s specialty.
Demonstration of a battery consisting completely of solid matters
(all solid-state battery)
Photocatalytic glass ceramics
Transition and projection of global market of lithium ion battery
OHARA will create new materials and components that would
provide new value in the environmental and energy fields, using its
expertise on material design and development of products, such as
functional glass and glass ceramics, which have been cultivated in
the optical and electronics businesses, as well as production
technology for high homogeneity glass and advanced physicality
control technology.
Photocatalytic glass ceramics
Photocatalytic glass ceramics are inorganic composite
materials in which crystals with photocatalytic
property are disbursed within a glass. Compared with
other photocatalytic materials embrocated or coated
on a plastic sheet, its photocatalytic function does not
decrease due to the peeling, deterioration of substrate
materials or the like.
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
FY2010FY2011
FY2012 (Projection)
FY2013(Projection)
FY2014 (Projection)
FY2015 (Projection)
Amount (million yen)
Automotive use
Compact consumer use
Industrial use
* Prepared by OHARA based on data estimated by Yano Research Institute Ltd.
08OHARA CSR Report 2013
Adding greater valueAdding greater value
OHARA pursues the development of cutting-edge materials of the highest quality, which would contribute to its customers’ technological innovation.
Optical business Electronics business
Environmental and Energy business
* Compact mobile devices (All Solid Battery)
* Air purifiers (photocatalytic filter)
Astronomical telescopeVarious types of product forms
* Expanding variations of product forms
* Endeavoring a business involving
post-processing, such as polishing or glass molds
for lens of cameras
* Component materials for precision equipments, such
as semiconductor exposure apparatus, etc.
* Developing for use related to space and
astronomical observation
09 OHARA CSR Report 2013
Human resource development and organizational culture
By having as our mission the provision of products that can
satisfy customers, OHARA has been working on “human
resource development” and “reform of organizational
culture”, aiming to cultivate “human resources who can
create things” from “human resources who make things”.
However, amid quickly changing business conditions,
more diverse and sophisticated human resources are
required in order to respond to globalization, development
of a third pillar of business and cooperation with strategic
business partners.
Under such circumstances, OHARA puts emphasis on
employment and development of human resources who
are committed to contributing to the society and
protecting the global environment.
Management which values and fosters human resources
OHARA fosters human resources who are committed to helping build a better societyand are capable of executing reforms.
OHARA considers it necessary to reform the corporate culture
such that development of new businesses can be actively
advanced. We always consider and carry out measures to foster a
corporate culture in which people can proactively challenge
themselves to provide new values (products) which help
customers realize their dreams, by constantly paying attention to
customer trends and markets and anticipating changes in needs.
Under “Re-evaluation of Human Resource System”, which is one
of such measures, we have been promoting the reform of
corporate culture from the system side for the following purposes:
1) development of human resources who are committed to
helping build a better society and capable of executing reforms;
2) realization of a corporate culture in which people can challenge
themselves without fear of failure; and, 3) creation of a system
which pursues human resources who will voluntarily learn and
grow.
Anticipating customer trends and changes and fostering a challenge-worthy culture
Three pillars of OHARA’s business are the optical business, the
electronics business and the environmental and energy business.
The environmental and energy business is especially expected to
grow. In order to foster such business, we have established an
“incubation center”, as part of the business promoting organization,
and it has been promoting the strengthening of such business.
OHARA will consider flexible organizational frameworks to promote
strategies effectively.
Establishing a framework to promote the three pillars
10OHARA CSR Report 2013
Corporate Governance System Diagram
General Meeting of Shareholders
Divisions, Factories, Group companies
Board of Directors11 directors
(including three outside directors)
Board of Auditors Accounting Auditors
Representative Directors
Four auditors (including three outside
auditors)
Management Council(makes decisions on
important matters, etc.)
Internal Control Comm
ittee
Ethics and Compliance Com
mittee
Risk Managem
ent Comm
ittee
Information D
isclosure Comm
ittee
Business Audit Departm
ent
Quality Assurance Council
Environmental M
anagement
Council
Safety & Health Comm
ittee
Sincere A
ctivities
Corporate Governance
OHARA believes that strengthening of corporate governance is important in order to increase the confidence of various stakeholders and maximize our corporate value. In order to ensure appropriate and highly transparent decision-making, the Board of Directors (which include three outside directors), the Board of Auditors (which include three outside auditors) and the Management Council (composed of full-time auditors, directors and general managers appointed by the president), which is meant to make decisions appropriately and efficiently from a strategic viewpoint, work together, with the president being in the center. The above set-up enables us to strengthen corporate governance.
Sincere ActivitiesSincere Activities
Based on the auditing plan for each fiscal year, the appropriateness and legality of operational procedures, as well as the effectiveness and efficiency of operations, are checked. For example, whether the operations of each division and subsidiary of the OHARA Group are properly conducted in compliance with the internal regulations, starting with rules on administrative authority is examined.
Ensuring effectiveness and efficiency of divisional management based on internal audit
We will improve the management foundation, promote fair businessactivities in compliance with rules of countries and regions where we conduct business and contribute to customers through providing high quality products.
The Internal Control Committee was established in May 2006 to strengthen the OHARA Group’s internal controls. With the company’s president serving as a chair, the committee consists of the headquarters directors, subsidiary presidents, general managers of the headquarters division and the committee secretariat. The results of internal controls evaluations and items to be improved concerning the OHARA Group’s financial reports are reported to such committee annually in order to ensure reliability of the financial reports.
Ensuring reliability of financial reports base on internal control audit
11 OHARA CSR Report 2013
Sincere A
ctivities
OHARA has established the “Guidelines of Conduct” in accordance with OHARA's philosophy based on our corporate principles. The “Ethics and Compliance Committee” holds a variety of in-house seminars in accordance with such Guidelines on a continuous basis in order to ensure that every employee of OHARA comply with laws and regulations and execute business activities with a high sense of ethics and in a fair and proper manner.
Compliance promotion system
Compliance
Guidelines of Conduct1. Do not be involved with any act or activity that is problematic in light of
ethics or compliance.
2. Honestly admit a violation, deviation or error and promptly take corrective
and preventive measures.
3. Sufficient education shall be offered to every officer and employee of the
OHARA Group on the continuous basis, and the results of such education
shall be likewise confirmed.
4. An appropriate self-audit shall be made every fiscal year in all organizations
within the OHARA Group in accordance with the Internal Audit Policy.
5. Proactive approaches are taken as a priority issue in management.
Sincere Activities
OHARA promotes risk management, led by the Risk Management Committee, in accordance with the OHARA Group’s risk management policy.
Risk Management System
In recent years, the environment surrounding companies has drastically changed and risks which have effects on corporate management have increased. Thus, appropriate risk management systems are required. As a continuation of the previous year, measures, such as raising the production ratio in China where raw materials are produced, were taken in FY2012 in order to secure a stable supply route for rare earth. We also continued to work on the development of improved products that use less amount of rare earth.
Response to Business Risk
Risk Management
Based on OHARA's philosophy based on our corporate principles and the Guidelines of Conduct, OHARA has stipulated the Codes of Conduct: Guidelines, which specify major points of laws and regulations, response policies and matters of caution to be complied with in conducting business activities and has been providing educational activities for all employees using the intranet.
Codes of Conduct: Guidelines
Outline of the Codes of Conduct: Guidelines
1. Matters concerning individuals○ Respect for human rights and prohibition of
discrimination○ Prohibition of drunken driving○ Protection of assets○ Prohibition of insider trading○ Prohibition of sexual harassment○ Prohibition of illegal copying○ Prohibition of acts in conflict of interest
2. Matters concerning sales activities○ Protection of trade secret○ Fair trading with subcontractors○ Prohibition of unfair competition○ Compliance with laws and regulations related
to import export trade○ Respect for and protection of intellectual
property
3. Matters concerning a corporation○ Protection of personal information○ Manifestation of a corporate intention○ Compliance with tax laws○ Prohibition of religious and political
activities as well as sideline activities in the premise of the company.
○ Safety and health as well as disaster prevention
○ Efforts for creating a quality assurance system
○ Appropriate publicity activities and environmental protection
In preparation for emergency events, including natural disasters that may hinder smooth business activities and management targets, OHARA formulated its Business Continuity Plan (BCP) in 2007. In principle, the BCP is reviewed every year. In FY2012, we extensively reviewed evaluations of/countermeasures for risks of the entire Group companies.
Continuous Improvement of the Business Continuity Plan
○ Compliance with the Antimonopoly Act○ Credit management○ Inappropriate offer and receipt of benefits
12OHARA CSR Report 2013
Sincere A
ctivities
Improving Customer Satisfaction through Quality Control
As quality required by customers has become higher and diverse, cooperation not only with the quality assurance division, but also among all divisions of OHARA will become necessary to provide good products and services. Furthermore, awareness and abilities relating to quality control of all employees working at such divisions will become important. In addition, knowledge regarding quality control is the most basic knowledge that is required to exercise the ability to control and improve quality. Since 2011, OHARA has been encouraging employees of all divisions involved in improving quality of products and services to take the Quality Management and Quality Control Examination (QC certification)” administered by the Japanese Standards Association. As of December 2012, 10 employees passed level two and 51 employees passed level three (including employees who passed both levels).
Fostering human assets who support good quality
Quality policyOHARA INC. pursues the highest quality, and everyone involved in its business activities always “provide customer satisfaction” in accordance with the following guidelines so as to contribute to “creating the future for people and society” with unflagging technological innovation.
Guidelines (excerpts)○ Earn Customer's trust and satisfaction.○ Confirm customer's request.○ Establish and continuously improve a product management system.○ Elaborate quality.○ Thoroughly disseminate the quality policy to all employees.
To provide products that satisfy our customers, OHARA has been implementing a quality management system of ISO9000 International Standard and constructing a quality assurance system since 1996.“Confirmation of customer's request” of OHARA's quality policy stipulates the following: “fully understand customer's request first, and then thoroughly make it known to all concerned parties.” The above is based on the concept that quality is determined by customers.
Construction of Quality Assurance System
Sincere ActivitiesSincere Activities
Impacts from skyrocketing prices of rare earth that have been recognized as a social problem are showing signs of stabilization with the exception of a few specific raw materials. However, the situation has not changed in terms of needing to depend on China for procuring raw materials, starting with lanthanum oxide. Accordingly, in order to avoid risks of procurement of raw materials, we started taking initiatives for diversifying suppliers of raw materials. As raw materials used for optical glass are required to have high purity and quality, they must meet extremely strict requirements for such use. Accordingly, OHARA analyzes impure substances in, and purity of raw materials and evaluate whether they are appropriate raw materials for optical glass. Management of impure substances in raw materials is the most important evaluation item in maintaining individual properties of optical glass. As traces of impure substances in raw materials have to be measured, material analysis must be done with the utmost care in order to prevent contamination of test samples by dust or the like. These tasks are conducted by personnel with abundant experience and knowledge of chemistry. With the goal of further improving quality, we foster a professional team of analysts.
Quality control of raw materials
Circumstances of raw materials analysis
13 OHARA CSR Report 2013
Sincere A
ctivities
As customers' activities have been shifting to overseas, it has become necessary to expand the scope of guarding quality assurance not only within Japan but also to overseas. In order to win the trust of customers in OHARA's products, we have been conducting quality improvement activities for domestic and overseas subsidiaries, as well as at subcontracted plants.Specifically, we have built quality control systems for OHARA and subcontracted plants through exchanging QC chart and quality assurance agreements, so that outsourcing of manufacturing/processing can be done without any issues. Furthermore, we have been preparing a quality assurance guideline and performing activities, such as “improving the PDCA Cycle”, “visualizing (the manufacturing) process” and “equalizing the levels of and certifying plant inspectors”.
Domestic and Overseas Management Activities
Cooperation with Suppliers and Customers
● Clarify management items to be complied with.
● Standardize tasks to eliminate variation.
● Conduct (manufacturing) process audit based on QC chart.
● Levels of inspection/measurement are to be equal to those of
OHARA (conduct certification tests).
● Generally, leveling of inspection/measurement is to be
conducted with inspectors of OHARA on a one-on-one basis.
Points required by OHARA are incorporated into QC
chart/work procedures manual
Sincere Activities
In order to capture the quality required by customers as soon as possible, OHARA has discussions with customers regarding quality from the product design stage to the trial production stage on a regular basis. Further, data relating to OHARA’s quality received from customers are analyzed, mainly by the quality assurance division, and serve as a valuable information source for improving quality.Aiming at further improvement in quality, such information is firstly communicated from the quality assurance division to the production division, then the effectiveness of the quality management system is being continuously improved specifically to have our products reflect such information.
System to reflect customer’s voice
Management with QC chart/work procedures manual
Placing
orders
final
inspectionshipmentacceptance
process
(1)
process
(2)
process
(3)
Management under a quality assurance agreement
Feedback of quality information
Submitting of a performance record
Manufacturing process audit
Quality control activities at subcontracted plants
It has been an internationally significant issue that serious human-rights abuse is being committed by armed forces in “dispute regions”, including the Democratic Republic of the Congo and its neighboring countries. Minerals mined in such regions (tantalum, tungsten, gold and tin) are called “conflict minerals”. There is a concern that conflict minerals would serve as direct or indirect sources of funding for the local armed forces. With respect to this issue, conflict minerals provisions under the Dodd-Frank Act were enacted in 2010. In addition, the Organization for Economic Co-operation and Development (OECD) issued a “Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-risk Areas”. Through these initiatives, companies are being strongly required to take responsible initiatives in regards to their supply chains. OHARA has been advancing initiatives towards the non-use of “conflict minerals” by, for example, conducting surveys on the circumstances of use of minerals in products, in order to fulfill social responsibility in procurement activities.
Approach to Conflict Minerals
14OHARA CSR Report 2013
Harm
on
y with
Society
OHARA's business activities are supported by its coexistence with local and international societies. Maintaining harmony with society, OHARA will, proactively take initiatives to perform activities that contribute to society as a “good corporate citizen”.
Relationship with Local Communities
Major FY2012 initiatives
Harmony with SocietyHarmony with Society
OHARA donated 2.5 million yen (approximately $30,000) to The American Red Cross through Japan Red Cross Society as relief money to aid the victims and restore the areas hit by Hurricane Sandy that occurred in the eastern part of the U.S. in October 2012.
Monetary donation
Circumstances of a factory tour
As part of the local social contribution activities, OHARA accepts factory tours by students and allows students to experience working at OHARA, mainly from nearby schools. In FY2012, approximately 160 elementary school students participated in the factory tours. We received various questions from such students after they observed the actual glass manufacturing process. Further, three junior high school students visited the Company for work experience, and conducted inspection, packaging of products and administrative work at the reception area together with our employees. It seems the experience of actual work triggered their thinking about “working”.
Accepting Factory Tours and Allowing Experience of Working
Social Contribution Activities
Thank-you letters from neighboring elementary school students who participated
in factory tours
Experience of actually working
March: Participated in a drill for persons who have
difficulty returning home after a large-scale
disaster, etc. held by Sagamihara City
April: Sagamihara Environmental Fair 2012
(Environmental Information Center)
June & October: Sagamigawa River Cleaning Campaign (Takada
Bridge)
June & December: Participated in Global Warming Prevention
Campaign (Sagamiono Station)
September: Supported and participated in Sagamihara
Environmental Festival (City Gymnasium)
15 OHARA CSR Report 2013
OHARA publishes OPTPIA, which is a company newsletter, four times a year in order to communicate its management policies to its employees, have such employees understood such policies and vitalize the company.In FY2012, OPTPIA featured “the environmental and energy business”, OHARA’s new business, as well as the newly incorporated Taiwan Ohara Optical Material Co., Ltd. Further-more, a social gathering of an alumni organization, named “Kojukai”, was held to provide information on the present status and future plans of the Company to former employees.
Disclo
sure o
f Info
rmatio
n
OHARA provides for fundamental policies regarding information disclosure based on OHARA's philosophy based on our corporate principle.
Information Disclosure Initiatives
Disclosure of Information
● Company newsletter OPTPIA
● CSR Report● Company Brochure● Map of Optical Design
Indices for Optical Glass● Pocket Catalog of Optical
Glass● Financial Reports
Communication Tools
OHARA makes efforts for prompt disclosure of information and communication through the annual general meetings of shareholders held in late January, “business reports”, which contain information regarding management performance and other topics and are sent to shareholders twice a year, financial report briefing sessions for institutional investors and the IR department’s response to individual interviews.
Communication with Shareholders and Investors
As tools for communication with customers, a small catalog regarding OHARA's optical glass, called a “pocket catalog”, and CSR Reports are effectively used.The pocket catalog responds to three languages - Japanese, English and Chinese. Furthermore, a CSR Report is delivered to a wide range of stakeholders, and feedbacks through questionnaires are addressed in the activities for the following fiscal year.OHARA also publishes company brochures, financial reports, maps of optical design indices for optical glass, etc.
Communication with Customers
Financial report briefing sessions*As the Great East Japan Earthquake occurred on the day after the financial reporting announcement for the first quarter (March 10), all IR activities for the first quarter were cancelled. Consequently, the number of responses to interviews decreased in FY2011.
To gain the correct understanding of and support from society, we will make efforts for sincere and highly transparent communication through timely and appropriate disclosure of our company information.
1. Transparency
2. Compliance with related laws and regulations
3. Guarantee of Confidentiality and Timeliness of Disclosure
In order to protect information assets and establish a strict management system, OHARA has prescribed the “Personal Information Protection Rules” and presented “Policy for the Protection of the Personal Information” on its website.In addit ion , Ohara sets for th the protect ion of persona l information in its Codes of Conduct: Guidelines to thoroughly make such information known within the company.
Initiatives concerning the Protection of Personal Information
Fundamental Principles of Information Disclosure
Policy for the Protection of the Personal Information1. Statement of principles
OHARA INC. (hereinafter, the "Company") agrees to protect the
personal information which we have received from our customers and
complies with the relevant statutes associated with this.
2. Handling of personal information
As measures to prevent a leakage, loss, etc. of personal information, the
Company has instituted the rules for in-house handling of personal
information and implemented countermeasures against unauthorized
access from outside, etc. We will strive to improve, not to mention maintain,
such rules and countermeasures continuously for stronger protection,
without being content with the status quo. In principle, we do not disclose
or provide the personal information that we have received to any third
parties. When we receive personal information, we will clarify the purpose
for which it is to be used. In case we intend to use such information for any
other purpose than the one for which it was originally intended, we will
inform our customers of such an intention and seek authorization from our
customers.
3. Disclosure of personal information
If a claim from a customer is received for the disclosure, revision, or
deletion of personal information, the suspension of using personal
information, etc., we will promptly confirm the contents of the claim
and take a due response.
In receiving a claim, we will confirm the identity of a customer, of
which we beg your understanding. Any communication pertaining to
the above-mentioned claim should be submitted to the following
person/position.
4. Contact:
General Affairs Section, General Affairs Department, OHARA INC.
Phone: 042-772-2101 Fax: 042-774-1071
E-mail : info@ohara-inc.co.jp" info@ohara-inc.co.jp
Communication with Stakeholders
Communication with Current and Former Employees
Kojukai’s second social gathering
FY20082009201020112012
819910873100
The number of responsesto interviews by fiscal year
*
4. Fairness
5. Continuity
6. Confidentiality
al
16OHARA CSR Report 2013
Environmental Management Council
President
Environmental Management Promotion Headquarters(Secretariat: Environmental Safety Section)
Management Council
Internal Environmental Auditors
Environmental Management General Manager
200,000
150,000
100,000
50,000
0
(Thousand yen)
2008
127,264
2009
79,874
2010
104,731
(FY)
Others
Environmental improvement cost
Anti-pollution cost
Environmental analysis cost
Premises cleanup cost
Waste disposal cost
2011
116,710
Environmental Protection Cost
2012
113,460
Environ
men
tal Man
agem
ent
Cou
nci
Environmental Pollutant
Reduction Promotion Com
mittee
Energ
y Saving
Prom
otion C
omm
ittee
Waste R
edu
ction an
d R
euse
Prom
otion C
omm
ittee
Dep
artmen
ts
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Taking care of our one precious earth, OHARA takes initiatives to proactively protect the environment in all aspects of its corporate activities.
Environmental Management
Environmental ProtectionEnvironmental Protection
One of the most important matters in environmental management is installing and maintaining anti-pollution facilities. In addition to complying with laws and regulations, we strive to reduce the burden on the environment while curbing costs. To that end, day-to-day management will be important. We will promote environmental management activities, with an eye towards the future, by effectively implementing the environmental management system.
Environmental Protection Cost
System for Promoting Environmental Activities
OHARA offers a “company-wide awareness education” program annually to its fulltime and part-time employees, temporary workers and employees of cooperative companies working in its premises.As part of such program, OHARA provides education regarding progress in environmental programs and chemicals contained in products to deepen the understanding of initiatives relating to the environment.
Offering of Environmental Education
OHARA is promoting a variety of activities with the philosophy and policies for environmental management to be applied to all divisions, aiming at harmony between its corporate activities and the global environment.
Philosophy and Policies for Environmental Management
PhilosophyUnder the internationally accepted philosophy of sustainable development, OHARA
recognizes that achieving compatibility between corporate activities and the
environment is one of the most critical issues in running a business. The entire Company
will continue to refine its environmental management systems so that they comply with
international standards, and operate in the areas of light, electronics, the environment
and energy, effectively harnessing the technologies we have developed for optical glass,
specialty glass, hard disc substrates, and applied products. In this way, we will actively
pursue environmental management and contribute to society.
Policiesa) We will comply with laws and regulations related to the environment of the
countries and local jurisdictions in which we operate, as well as the rules of conduct of industry. At the same time, we will establish independent standards for environmental management and improve the environment.
b) We will reduce waste and encourage reuse, energy conservation and resource conservation.1. We will reduce the volume of glass scrap, plastics, refractory bricks, etc. and reuse
them where possible.2. We will conserve electricity and gas energy and reduce CO2 emissions by
improving the air conditioning and lighting systems, production processes and production facilities of our factories.
3. We will conserve source materials and other natural resources by enhancing the yield ratio in glass manufacturing.
c) We will develop and supply products that benefit the global environment.
d) We w i l l protect the env ironment from contam inat ion and deve lop more
environmentally friendly products, for instance by finding alternatives to hazardous
substances. We will also follow international rules and regulations, as well as
customer requirements that we have accepted, while strengthening systems for
controlling the chemical substances contained in our products.
e) We will set environmental objectives and targets, which are to be revised in
response to changes in the surrounding conditions, while at the same time
continuing to improve environmental management systems.
f ) We will implement and maintain environmental policies by operating
environmental management systems, and will make them known to all workers in
our facilities. Policies are to be made public.
g) We will seek to work in harmony with regional communities, business partners and
related organizations.
17 OHARA CSR Report 2013
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FY2012 environmental targets/details of activities and FY2013 environmental objectives/targets
Environmental Protection
In FY2012, we could not achieve satisfying outcomes due to lower productivity caused by skyrocketing prices of rare earth. In FY2013, although the market environment is worsening due to a recession, we will strive to overcome such difficulty through
Company-wide reform activities and take initiatives towards achieving our targets.
18OHARA CSR Report 2013
ItemsFY2012 Environmental
TargetsActivity Results
Target Achievements
FY2013 Environmental Objectives and Targets
Reducing and recycling waste
Reduce unit consumption of glass wastes by 1% by
October 2012 (relative to 2011)
Since productivity decreased due to change of lots and
other types of products, and the frequency in the production
of g lass mater ia ls , wh ich i s di f f icu l t , inc reased , unit
consumption increased.
Objective: Reduce unit consumption of glass
wastes by 3% (relative to 2011)
Target: Reduce unit consumption of glass wastes
by 2% (relative to 2011).
We will continue to promote initiatives, such
as effi ciently change the types of products and
improve product yield, etc., in order to prevent
the generation of glass wastes.
With reuse and recycling, we will reduce the
volume of glass wastes.
Energy conservation
Reduce unit consumption of energy by 1% by
October 2012 (relative to FY2011)
We achieved the targeted reduction due in part to eff ects from
energy conservation, etc., with respect to glass melting furnaces.
Objective: Reduce unit consumption of energy by 3%
(relative to 2011)
Target: Reduce unit consumption of energy by 3%
(relative to 2011)
We will promote activities aiming to achieve the
target shown above. Energy-saving equipment will
be systematically introduced.
Harmony with Environment
in Local Communities
Participation in activities for local environmental
conservation
・Participate in the Sagamigawa River Cleaning
Campaign
Have participation of 13% or greater of the entire
personnel (excluding temporary workers)
・Participate in other environmental protection
activities
Sagamigawa River, which originates in Yamanaka Lake and runs
through Sagami Bay, is a place of relief for citizens.
In order to protect this rich nature, cleanup work along the
riverbed is performed twice a year. OHARA’s 108 employees
(13.9%)/year participated in such event. In addition, OHARA took
part in street cleanup campaigns, social contribution programs
hosted by other companies, environmental-related seminars, etc.
・Par t ic ipate in the Sagam igawa R iver
Cleaning Campaign Participation of 13% or
greater of the entire personnel (excluding
temporary workers)
・Participate in other environmental protection
activities (Street cleanup campaign, etc.)
・ Participation in environmental seminars
G re e n i n g Co m p a ny Pre m i s e s ( l a n d s c a p e /
aesthetics)
・ Increase green areas w ith in the Company
premises by 100m2 or greater
・Pick weeds within the Company premises at least
10 days per year
From May to October, we picked weeds within the Company
premises during the lunch hour. We picked weeds for a total of
11 days and 241 employees participated in total.
・Increase green areas within the Company
premises by 10m2 or greater
・Pick weeds within the Company premises at
least 10 days per year
Conduct a “No Car Day” campaign to reduce CO2
emissions by 15t annually
・Conduct activities to enhance awareness of a “No
Car Day” campaign
・Have each department submit a report on one
fi xed day every month
The number of employees commuting by car decreased
compared to FY2011. As there were continuous heat wave and
bad weather in the summer, the target was not achieved even
with a reduction of 13.7t in CO2 for the year.
Conduct a “No Car Day” campaign to reduce
CO2 emissions by 15t annually
Contribution to Improving
the Global Environment
Deve lopment and supply of p roduc ts wh ich
contribute to improving the global environment
・Promotion of commercialization of products that
contribute to improving the environment, energy
conservation and more effi cient use of energy
Continuing development towards commercializationCreate new projects by promoting early
launch of new products.
Enhancing Awareness of
Environmental Protection
Separate disposal, reduction and recycling of plastic
wastes
・ Carry out campaigns for separate disposal,
reduction and recycling of plastic wastes (including
weighing of plastic wastes) to achieve an eco-
plastic rate of 75% or greater
・ Identify issues and take actions/perform
educational activities
We managed to achieve a reduction in total plastic wastes and
an eco-plastic (materially-recycled and heat-recycled plastics)
rate of 77.0%.
・Carry out campaigns for separate disposal,
reduction and recycling of plastic wastes
(including weighing of plastic wastes) to
achieve an eco-plastic rate of 75% or greater
・ Continue activities to donate PET bottle caps
(for vaccine fundraising) and take initiatives
to engage in activities such as donating
pull tabs of empty cans (for wheelchair
fundraising) etc.
Separate disposal, reduction, and recycling of
paper wastes
・ Carry out campaigns for separate disposal,
reduction and recycling of paper wastes
(including weighing thereof) to achieve a
recycling rate of 95% or greater
・Awareness-raising activities to reduce use of
paper for copying
We promoted the separate disposal, reduction and recycling
of paper wastes as well as recycling of glass material sacks and
achieved a recycling rate of 95%.
Carry out campaigns for separate disposal,
reduction and recycling of paper wastes
(including weighing thereof ) to achieve a
recycling rate of 95% or greater.
Strengthening the system for managing the chemicals
in products
・Off er educational classes at least fi ve times/year
・Promote development of products that cause less
burden on the environment
・Cause newly-developed or improved products to be
free from lead and/or arsenic
・Chemicals contained in purchased raw materials to
have an evaluation of at least 67
・Educational classes on the management of chemicals contained
in products were off ered fi ve times.
・ To promote the development of products that cause less
burden on the environment, information obtained from
customers and other sources was provided to the Company.
・New or improved optical glass products were made 100% lead-
free and 98% arsenic-free.
・113 chemicals contained in purchased raw materials were
evaluated.
・Continue to offer educational classes at least five
times/year
・Promote development of products that contribute
to improving the global environment
・Continue to cause newly-developed and improved
products to be free from lead and/or arsenic
・Continue to evaluate chemicals contained in
purchased raw materials
・Build a management system for non-use of confl ict
minerals
Note: Objectives are based on unit consumption as of FY2015, and targets are based on unit consumption as of FY2013.
Degree of target achievement: = 100% or more = 75 - 99% = 75% or less
Final disposal amount
11t
Recycled amount
287t
* Definition of recycled cullet: Glass waste generated at each process that is reused for melting and other processes.
Concrete landfillSimple landfillLandfill after volume reductionHeat recovery
Recycling after volume reductionRecycled resourcesValuable (useful) materials)
* Volume reduction: Reducing volume of wastes
100
80
60
40
20
02008 2009 2010 2011 2012 (FY)
4.3
1.2
1.3
35.4
21.6
36.2
4.9
1.5
0.3
31.0
22.4
39.9
1.9
0.8
0.2
31.1
22.1
43.9
3.8
1.4
0.2
41.0
11.6
41.9
(%)
Waste Disposal Breakdown
7.0
0.9
0.2
47.7
2.8
41.3
Production volume
Total dissolution
PROCESS
OHARA INC.
Recycled
cullet*
Recyycleddd
culleet*
Water Water usage
・Tap water: 2,451m3
・Groundwater: 2,680m3
Major raw materials
Glass raw materials
Amount of glass purchased
EnergyEnergy 1,351kℓ
(Crude oil equivalent)
Figures relevant to burdens on the environment (monthly average)
INPUT
w mmat
q
Wastes
Waste amount 298t
・Glass wastes
・Refractory wastes
・Plastic wastes
Products Shipping volume
Water PRTR designated substances
in factory effluent 1.3kg
Air and global warming substances
Air (PRTR designated substances) 67.2kg
CO2 emissions 2,145t-CO
2
OUTPUT
R d i
ry eeffl
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Material Balance
Environmental ProtectionEnvironmental Protection
Waste disposal costs account for majority of environmental costs. OHARA holds a waste reduction and recycling promotion committee meeting on a regular basis to consider the reduction and recycling of glass wastes. OHARA promotes similar activities in regards to other wastes. Such activities continue to be part of OHARA’s objectives/targets in order to use limited resources effectively without wasting.
OHARA develops environmental protection activities by quantitatively understanding the amount of energy and resources used in OHARA’s business activities (INPUT) and products or substances that burden the environment generated from such activities (OUTPUT).
Reduction and Recycling of Wastes
Recycled glass wastes
19 OHARA CSR Report 2013
Water resource use
Breakdown of energy use (based on price)
Gass 27.6%
Water 2.6%Other 1.8%
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
58,805 55,867
38,618
49,494
(m3)
2008 20102009 2011 2012
Electricity 68.0%
CO2 emissions
31,460
20,875
31,255 30,639
CO2 emissions (t-CO2) per unit sales (t-CO2/million yen)
2.50
2.00
1.50
1.00
0.50
0.00
(t-CO2/million yen)
35,000
30,000
25,000
20,000
15,000
0
1.27 1.46
1.42 1.30
(t-CO2)
2008 20102009 2011 2012
25,537
1.07
61,573
Electricity and gas use (crude oil equivalent)
Electricity (crude oil equivalent kℓ)
City gas (crude oil equivalent kℓ)
per unit sales (kℓ/million yen)
25,000
20,000
15,000
10,000
5,000
0
1.5
1.0
0.5
0.02008 20102009 2011 2012 (FY)
(FY)(FY)
13,251
9,612
13,206
19,670
13,186
19,55819,322
6,419
3,574
6,352
(kℓ) (kℓ╱million yen)
0.797
0.924 0.888
13,442
5,880
0.82216,309
12,099
4,210
0.680
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Energy Conservation
Environmental Protection
Glass manufacturing consumes much energy (in the form of electricity and city gas). The amount of energy use has been increasing since 2003 with augmentation of production facilities. In FY2012, usage of city gas largely decreased thanks to the introduction of energy saving type furnaces in 2007. Per unit sales has shown a downward trend year by year. CO
2 emissions also decreased. In recent years, however, as use of
water resource has increased, we have been urged to take fundamental measures for improvement. OHARA takes initiatives by setting challenging targets annually to reduce energy consumption and CO
2 emissions. In addition, each
employee in the back-office divisions is highly conscientious regarding energy conservation, and the entire company takes initiatives in unity. Furthermore, OHARA strongly promotes the three Rs (i.e., Reduce, Reuse, Recycle) through various committees and Company-wide campaigns.
Energy and resource conservation initiatives
OHARA is promoting energy use reduction through energy conservation activities per each Department under its environmental programs and activities of the energy conservation promotion committee. The energy conservation promotion committee promotes activities to eliminate wasteful use of energy and enhance awareness of energy conservation by focusing on conducting an energy conservation patrol once a month.In the summer of FY2012, OHARA initiated Company-wide energy conservation measures, such as restricting the use of air conditioners with thorough management of room temperature, implementing a rotating schedule of work time to reduce power consumption at peak time and implementing a “cool biz” style (where employees can dress more casually to combat the heat).
Energy Conservation Initiatives
20OHARA CSR Report 2013
OUTPUT
INPUT
Number of participants in Sagami River Clean-up Campaign
25,000
20,000
15,000
10,000
5,000
0 2009 2010 2011 2012 (FY)
19,854
2008
13,694
22,515
18,341
(t-CO2)
CO2 reduction pertaining to commuting by car
120
100
80
60
40
20
0
(Persons)
2008 20102009 2011 (FY)2012
36
56
74
100
108
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Harmony with Environment in Local Communities
Environmental ProtectionEnvironmental Protection
Sagami River running through Sagamihara City where the headquarters of OHARA is located, as well as its vicinity, have a valuable natural environment and serves as oases for the local citizens. In order to conserve the environment, a “Sagami River Clean-up Campaign” is conducted semi-annually, in which the local organizations and individuals in the city come together to clean up the riverbed. OHARA has supported such activity, and its employees and their families participate therein to conserve the environment of Sagamihara, the “city of water”.
Sagami River Clean-up Campaign
OHARA promotes a “No Car Day” campaign, which recommends commuting by public transportation, bicycle or on foot in an effort to reduce CO2 emissions. Through such campaign, OHARA seeks to create “harmony with the environment in local communities”. The number of employees who has changed from commuting by car to commuting on foot or by bicycle increased since OHARA established fixed dates of “No Car Days” and proactively called for such change through e-mails, bulletins, etc.
“No Car Day” Campaign
OHARA has been engaging in cost reduction campaigns based on Toyota’s production method, named “Jiayou-sakusen (Encouragement Campaign)”, since 2004. For the purpose of maintaining and enhancing the morale fostered through this campaign, and focusing on the surrounding regions, OHARA cleans its periphery areas of the Company's premises on Friday mornings every two weeks, together with Yamada Corporation that is situated adjacent to OHARA.
Morning Cleaning
Cleaning up the periphery of the Company's
premises
In recognition of the street clean-up activities around the Company's premises, which OHARA has conducted over the years, OHARA was commended as a great contributor in promoting beautification campaigns by the Sagamihara City Beautification Promotion Association at the “Recycle Fair 2012” held within Sagamihara City on October 21.
Commendation for Beautification Campaign
21 OHARA CSR Report 2013
Recycling rate of plastic and paper wastes
2008 2009 2010 2011 2012(FY)
73.968.1 75.7 78.2
70.1
91.294.7 94.9
77.0
95.0
OHARA’s MSDSInform employees via divisions
General Affairs SectionEnvironmental Safety SectionInformation on Various Laws and RegulationsManagement of Chemicals in Products
Purchasing SectionResources/MaterialsReagents MSDS*
Production Control Section 1Purchased Materials MSDS
Manager in charge of chemicals
MSDS Manager
MSDS DeveloperProduction Control Section 1
Personnel Section
(%)
100
80
60
40
20
0
Recycling rate of plastic Recycling rate of paper
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Education on Environmental Conservation
Environmental Protection
OHARA makes continuous efforts to obtain the latest information on international environmental laws and regulations that are constantly changing. Stipulating the management of chemicals contained in products under its environmental policies, OHARA takes initiatives to, among others, provide company-wide education, cause products to be free from lead and arsenic at the developmental/designing stages, analyze impure substances in Purchased raw materials for glass and thoroughly prevent contamination by impure substances in each process.OHARA will further enhance the management of chemicals in supply chains in the future.
Importance of Chemicals Management
The weight of plastic wastes brought to the Company's recycling center from each workplace every month are managed by classifying them into recyclable items (eco-plastics) and non-recyclable items (miscellaneous plastics). With an eye to promoting separate disposals at each workplace, a “Dictionary on Separate Disposal” was prepared. Due in part to the effective use of such dictionary, the recycling rate of (materially-recycled and heat-recycled) eco-plastics reached 77.0%. In addition, the Company is taking initiatives continuously to turn PET bottles into valuable materials and donate PET bottle caps.
Separate disposal, reduction and recycling of plastic wastes
OHARA individually taught methods of separating wastes appro-priate to each workplace through having concerned parties patrol the separation of wastes at all workplaces. As a result, OHARA achieved a recycling rate of 95.04%, exceeding the ambitious target value of 95%.
Separate disposal, reduction and recycling of paper wastes
Importance of Chemicals Management
* MSDS: information regarding the properties and handling of chemicals and products containing them
22OHARA CSR Report 2013
Ethics and Compliance Committee Secretariat
③ Reporting of Reported Contents
When a committee meeting must be convened
Consideration/instructing of contents of corrective measures, etc.
⑨ Notification to the informer
② Reception ① Report ② Reception
Informer
Informer
Contact
CCCCon idididsidera iiitition insttruc iititing offff c tont tents offff corr tectiiiive measures ettcConsideration
Ethics and Compliance Committee
④ Conducting and recording of an investigatio
⑤ Consideration of corrective measures
⑥ Implementation of corrective measures
⑦ Confirmation of results of corrective measures taken ⑧ Reporting to contact
External contact(lawyer)
Internal contact(Personnel/General
Affair Sections)
Outline of Employee Education(1) Advanced Management Training Every year, education and training is held outside the company for
employees who have been newly appointed as general manager or
deputy general manager of a division and those who have been
newly promoted to any other position of the same rank.
(2) Intermediate Management Training Every year, in-house education and training, to which lecturers are
invited, is held for employees who have been newly appointed as
manager or assistant manager (including a manager-equivalent
position) of a section and those who have been newly promoted to
any other position of the same rank.
(3) Introductory Management Training Every year, in-house education and training, to which lecturers are
invited, is held for employees who have been newly appointed as
sub-manager or assistant sub-manager and those who have been
newly promoted to any other position of the same rank.
(4) Young Employees Training In principle, such training is held for employees who joined OHARA as
new graduates and have worked for OHARA for three years thereafter.
At a period when such employees become aware of being an adult
and may become complacent, such training is designed to motivate
such employees and have them acquire basic skills for their job. Such
training is administered in-house by inviting lecturers.
(5) Training to Improve Communication Ability Such training is held in-house, to which lecturers are invited, after the
Young Employees Training but before the Introductory Management
Training. Participants learn how to communicate at a workplace and
how to treat the juniors when advising them.
⑥ Incremental Training based on Age (Career Training)
Regardless of job title, in-house training, to which lecturers are
invited, is offered to employees who reach the age of thirty, forty or
fifty years old. Such training provides participants an occasion to look
back on his/her life and think about what he/she should do in the
future, with an eye to promoting their independence and awareness.
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OHARA respects the human rights and individual personalities of its employees.In addition to cultivating the spirit of the corporate principles, OHARA will build a free and open-minded corporate culture in which safe and comfortable work environment is secured.
Human Rights Initiatives
Employee RespectEmployee Respect
In order for a company to grow and continuously develop, it is necessary to continue to reform business and organizations by forecasting and promptly responding to changes in external environments. Such reform, however, cannot be attained only by changing the business and organizations. In order to achieve such reform, it is important for each employee to become the core of such reform. In addition to providing training on an incremental age basis starting from new employees’ training (young employees training, training for employees reaching the ages of thirty, forty or fifty years old), OHARA has in place an educational system incorporating specialized programs related to each employee (management training), with the goal of fostering independent human resources. In response to the “lack of ability to communicate well” among young people in recent years, “training to improve communication ability” was newly introduced in 2012.
Concept of Human Resource Development
In regards to “respect for human rights and prohibition of discrimination”, OHARA’s Codes of Conduct: Guidelines provide as follows: “No person working for OHARA shall be discriminated on the grounds of race, nationality, sex, age, origin, physical disability or any other reason unrelated to the performance of duties. Slander, libel, harassment, intimidation or any other speech or conduct that disregards human rights or the dignity of an individual shall be strictly prohibited as humiliating another person must be prevented.”
Conception regarding Human Rights
OHARA's Human Resource Development
When a corporate ethics issue arises, the department head will respond to a request for advice (or notification) from a person seeking advice (or informer) and promptly take appropriate action, in principle. To deal with difficult cases due to some reason, OHARA has established an internal reporting system (help line) in which a person seeking advice (or informer) can report directly to the Ethics and Compliance Committee. From November 2012, OHARA added the General Affair Section as a contact for internal reporting and put a female lawyer in charge as an external contact. In such ways, OHARA has been making efforts to create a user-friendly environment.
Internal Reporting
23 OHARA CSR Report 2013
2008 2009 2010 2011
18
16
14
12
0
5
10
15
(Persons)
(FY) (FY)
(Persons)20
2008 2009 2010
25
21
2012
17
2011
28
15
0
5
10
15
20
25
30
35
Number of employees taking childcare leave
Number of employees using the scheme for shorter work hours for childcare
2012
25
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Creating a Comfortable Work Environment
Employee Respect
OHARA started company-wide campaigns for “Zero Overtime” and “100% Leaving Work on Time” from November 2006 as initiatives to create a comfortable work environment. One of the objectives of such campaigns is to “realize a work/life balance”. Work supports our livelihood and gives us joy and something to live for, but, at the same time, house duties, child-rearing, caretaking and socializing with our neighbors are indispensable parts of our lives. The building of "bonds" and "ties" is what doubles our motivation and delight in life. In actuality, however, we often become overburdened with work, and the resulting mental and physical fatigue affects our health. Some of us may be having issues between balancing work and personal life.To prevent our employees from falling into such situations, OHARA has been taking initiatives towards realizing a “fulfilling life” in which there is a work/life balance.
Concept of Work/life Balance
OHARA supports employees who are working while raising their children by improving the schemes for childcare leave and shorter work hours for childcare (until their children enter elementary school). In order to enable as many employees as possible to use the Child-rearing Support System, OHARA has been paying wages for reduced work hours (on an hourly basis) since the scheme for shorter working hours was introduced. Such was a significant decision for OHARA at the time because many companies (89.6%) were not paying wages for reduced hours. In FY2011, Sagamihara City praised OHARA for its efforts to pay wages for reduced hours ahead of other companies and honored OHARA as a “company that supports and promotes a work/life balance”.
Childrearing Support System
The source of competitiveness in the manufacturing industry is productivity, which is driven by the performance of each employee. Therefore, manufacturing and administrative back-office departments of OHARA are respectively taking initiatives towards “manufacturing efficiency” and “work efficiency”, and the entire company is together striving to improve productivity.To grow into a strong company that will not lose out in competition with other companies, it is necessary to pursue as a goal the “creation of greater value added with less human resource input”. Recently, activities for improving work efficiency are being proposed more often in outside seminars and symposiums on work/life balance. Examples of contents presented in such seminars and symposiums are as follows: “the concept of business improvement”; “identifying waste”; and, “time management”. Such contents are the same as the themes that OHARA have been incorporating into its initiatives for achieving “work efficiency”. Making work more efficient has contributed to not only "cost-cutting", but also to “growing a strong company which does not lose out to competitors", "keeping a work/life balance" and other various aspects. Accordingly, OHARA will continue such efforts as one of the important activities for OHARA’s survival in Japan.
Activities for Improving Work Efficiency
OHARA has a scheme for reemploying individuals who have
mandatorily retired. Many of the mandatory retirees are “mentally and
physically healthy” and have high “work performance ability”, even
after leaving the company at age 60. Through such reemployment
scheme, expertise and skills would be passed onto the juniors. Among
37 individuals who mandatorily retired at age 60 in the last five years,
27 individuals (73.0%) requested to be reemployed. Presently, all of
them are actively working at the Company.
Reemployment Scheme
VOICEPresently, I am working in China with my family.Deciding to give birth in China, my wife and I notified the Chinese Embassy in Japan in May 2011 to relocate to China. As we did not have a certificate to prove that my wife has not delivered before in China, we could not easily make a reservation for hospitalization. In China, the condition of delivery is harsh. For example, it is necessary to wait all night to receive a medical examination prior to giving birth. Therefore, I hoped to stay in Beijing to support my wife. After consulting with my boss and the Company, I decided to take advantage of the Childrearing Support System (childcare leave). After my daughter was born, I assisted with childcare by, for example, burping the baby and taking care of her during the night on a rotation basis. Now, my daughter is 17 months old. We have been able to overcome the difficulties of delivery and childcare thanks to the availability of the Childrearing Support System.
Liu Song
Using Child-rearing Support System
〔NHG-OHARA OPTICS
(XIANGYANG) CO., LTD.〕
24OHARA CSR Report 2013
Emp
loyee R
espect
Occupational Safety and Health Initiatives
Employee RespectEmployee Respect
Since the wear and tear of lavatories on the premises haveincreased, OHARA has been refurbishing and repairing such lavatories as part of improving the work environment. In 2012, lavatories at the plants were refurbished, which made employees who always use them happy.
OHARA will makecontinuous efforts to improve the work environment invarious ways.
Improving Work Environment
Refurbished lavatory
Disaster drill
OHARA holds a company-wide disaster drill every year so that its employees can take prompt action in case of a disaster. Similar to FY2011, OHARA conducted an evacuation drill involving allemployees, early-stage firefighting training by local security fire fighters consisting of OHARA’s employees and first responsetraining by security staff. In addition, OHARA makes efforts to strengthen emergency management by offering to its employeestraining to extinguish fire using water and cardiopulmonaryresuscitation training using AED.
Implementation of disaster drill
Support towards Activities to Maintain Health
OHARA has individual interviews with all employees upondelivering the results of regular medical check-ups. OHARA also provides health guidance, such as regarding diet, exercise, etc., to prevent metabolic syndrome, and listen to employees' problems that cannot be answered by the results of medical check-ups. If necessary, OHARA arranges consultations with an industrial doctor or a mental health specialist for its employees.OHARA also transmits information on health through OPTPIA, thecompany newsletter, to educate employees. In November 2012, OHARA launched a human resource section on the intranet inorder to enable all employees to access information on health. Furthermore, OHARA conducts surveys to check the degree of fatigue suffered by over-worked employees and employees stationed abroad and, if necessary, respond by having such employees consult with a nurse practitioner or an industrial doctor. In FY2012, as an event for health week, a "seminar onbreast cancer prevention" was held to teach how to self-check forlumps using a breast model borrowed from the city health center. Half of all women employees participated in such event. Some of themcommented that it was meaningful to understand thetexture of a lump with one'sown hands.
TOPICSOHARA has 14 employees stationed at the OHARA Group’s companies overseas.In 2012, I had the opportunity to inspect such Group companies and their nearby hospitals, and such employees’ actual living conditions and work environment. As there are many difficulties involved with living and working in foreign countries due to differences in culture, lifestyle, etc., as compared to Japan, I sensed that such employees must have many challenges that cannot be perceived from such inspection. Hoping that, even if only a little, such employees become aware of their health in between their busy work schedules, OHARA has been issuing a "Health Newspaper" for employees stationed abroad every other month. Since the thinking and initiatives regarding health in foreign countries differ from those of Japan, it may be difficult to take care of health overseas. However, OHARA will continue to promote health going forward in order to enable the employees stationed abroad to lead healthy lives and become aware of their own health.
Sakura Yamaguchi〔Personnel Section〕Starting health management of employees stationed abroad
25 OHARA CSR Report 2013
67.1%14.7%
Foreign companies
3.8%
Financialinstitutions
9.8%
Securities companies
0.2% Treasury stock 4.4%
Group Companies
Operating income35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
△5,0002008 2009 2010 2011 2012 (FY)
19,490,
27,456
30,57428,65928 659
(million yen)
6,372
3,2753 2751,644
△ 605
Transition of earnings
31,661
1,072
OHARA INC.ASHIGARA OPTICAL INC.OHARA PRECISION CORPORATION
OHARA OPTICAL (HONG KONG) LTD. (Hong Kong)
NHG-OHARA OPTICS (XIANGYANG) CO., LTD. (China)
OHARA OPTICAL (ZHONGSHAN) LTD. (China)
OHARA GmbH (Germany)
OHARA Quartz Co., Ltd.
TAIWAN-OHARA OPTICAL CO., LTD. (Taiwan)
TAIWAN OHARA OPTICAL MATERIAL CO., LTD. (Taiwan)
Net income
Earnings per share
2008 2009 2010 2011 2012 2 (FY)
6,000
5,000
4,000
3,000
2,000
1,000
0
△1,000
△2,000
500
400
300
200
100
0
△ 100
△200
(million yen) (yen)
3,915,
1,963
866
△△△△△△△1,848
880 780 780 780.780.780.7222222
35.60
△△△△△△ 9875 975 975 975 975.9
158.195858.58.19991919
Transition of net income
(Note) After retroactive adjustment for stock splits.
475
19.55
30
25
20
15
10
5
02008 2009 2010 2011 2012 (FY)
(Yen)
(Note) After retroactive adjustment for stock splits.
Transition of dividend per share
25
15
20 20 20
OHARA DISK(M)SDN.BHD (Malaysia)ysia)HAO
PTICAL(M)SDN.BHD (Malaysia)OHARA OPTICAL(M)SDN.BHD (Malaysia)
East Office) (USA)OCorporatiatOhara Corporation (East O
Ohara Corporation (West Office) (USA)sCorporation (We
Other Domestic corporations
Individuals, etc.
Co
rpo
rate P
rofile
Corporate Profile
26OHARA CSR Report 2013
Corporate Profi le (As of October 31, 2012)
Company Name: OHARA INC.
Address: 15-30, Oyama 1-chome, Chuo-ku, Sagamihara-shi, Kanagawa, Japan 252-5286
TEL: (81)42-772-2101 (Reception) FAX: (81)42-774-1071
Established October 1, 1935
Capital: 5,855 million yen
Business contents: Manufacture and sale of glass materials for optical and electronics
applications
Number of Employees: 443 (2,589 for the entire Group)
Products● Optical Business
・Optical glass/Eco-Optical Glass
・Low Tg optical glasses for glass mold lens
● Electronics Business
・Glass-ceramics for HDD
・Ultra low expansion glass-ceramics (CLEARCERAMTM-Z)
・i-line high homogeneity glass
・Glass-ceramic substrate for DWDM thin-fi lm fi lter (WMSTM-15)
・Fiber glasses for light guide
・Glass disk for Magnetic Head Flying Height Tester
(GD-FHTTM)
・Glass for Art
・Lithium-ion conductive glass-ceramics (LI CGCTM):
Development Products
・Measurement service on glasses/ceramics
・Synthetic quartz glass
・Ultra precision surface grinding
Stock Information (As of October 31, 2012)
●Total number of authorized shares: 76,000,000 ● Total number of issued shares: 25,450,000 ● Number of shareholders: 5,308● Major shareholders
Name Number of shares held Investment ratio (%)
1 Seiko Holdings Corporation 4,702,722 19.33%
2 Canon Inc. 4,694,380 19.30%
3 Kyobashi Kigyo Kabushiki Kaisha 4,688,400 19.27%
4 Sanko Kigyo Kabushiki Kaisha 1,638,300 6.73%
5 Topcon Corporation 673,600 2.77%
6 Japan Trustee Services Bank, Ltd. (trust account) 614,500 2.53%
7 Seiko Instruments Inc. 610,000 2.51%
8 The Master Trust Bank of Japan, Ltd. (trust account) 562,200 2.31%
9 Mizuho Bank, Ltd. 500,000 2.06%
10 The Bank of New York - Jasdectreaty Account 183,200 0.75%
(Note) Treasury stock (1,124,474 shares) is deducted in calculating investment ratio.
Issued in January 2013
www.ohara-inc.co.jp/