TOPCON GROUP CSR Report · In light of this, the TOPCON GROUP has formulated a basic CSR policy...

Corporate Social Responsibility Report

TOPCON GROUP CSR Report

Since TOPCON GROUP published the CSRreport in 2006 for the first time, we havesought to inform all our stakeholders ofour CSR policy and activities.This is the fifth CSR report from the TOP-CON GROUP. This year, we have put themain focus on our CSR activities and theproper level of disclosure. Our websiteposts additional information, including ourbusiness conduct guidelines and otherpolicies.In order to find ways to better presentinformation, we have referred to publiclyaccepted CSR reporting guidelines, talkedwith NPO representatives and participatedin a working group of Global CompactJapan Network (GC-JN).The CSR Report 2010 contains a specialfeature on our products that will helpaddress social challenges as a way of ful-filling our social responsibilities.A key requirement for participation in theUN Global Compact is the annual submis-sion of a Communication on Progress(COP) that describes a company's effortsto implement the Ten Principles (in theareas of human rights, labour standards,the environment and anti-corruption). ThisCSR report also serves as our COP on theGlobal Compact

�Report PeriodThis CSR report mainly covers our activ-ities for the period from April 1,2009 toMarch 31,2010.

�Scope of the ReportBasically, this CSR report describes theactivities and achievements of theentire TOPCON GROUP, except wherespecifically noted otherwise.

�Date of PublicationJune 2010 (Previous issue: June 2009)

�Guidelines Used as ReferencesGlobal Reporting Initiative (GRI) G3GuidelinesEnvironment Accounting Guidelines2007 from the Ministry of the Environ-ment of Japan

Editorial PolicyC O N T E N T S

Company Overview 1

TOPCON GROUP 1

Financial Information 1

Editorial Policy 2

Message from Top Management 3

United Nations Global Compact 4

Basic Policy for CSR, etc. 5

Introduction of Business 6

The measure and target of CSR (extract) 7

Relationship between TOPCON Products and Society 9

Holding of events for CSR Month, etc. 11

Risk-Compliance 11

Drawing Up a Business Continuity Plan (BCP) 12

Internal Control Activities 12

Environmental Protection Activities 14

Social Contribution 19

Responsibilities to Employees 21

Responsibilities to Customers and Suppliers 25

Third-Party Opinion 26

In Response to Third-Party Opinion 26

CSR Mind

Special Feature

CSR Management Report

Third-Party Opinion

� Corporate name : TOPCON CORPORATION� Established : September 1,1932� Location of the head office

: 75-1, Hasunuma-cho, Itabashi-ku, Tokyo� President : Takashi Yokokura, President � Capital : 10,297 million yen (as of March 31,2010)

� Consolidated subsidiaries: 13 domestic and 43 overseas companies

(as of March 31,2010)� Number of employees

: 4,888 (consolidated; as of March 31,2010)

� Business : Positioning business (surveying equipment)Eye Care business(Ophthalmic & medical equipment)Finetech business (industrial equipmentand optical devices)

� Major international CSR-related charters TOPCON supports: United Nations Global Compact

JAPAN14 companies

(2,297 employees)

EUROPE17 companies

(633 employees) CHINA5 companies

(951 employees)

NORTH AMERICA13 companies

(830 employees)

ASIA & OCEANIA8 companies

(177 employees)

TOPCON GROUP

CSR Activity Report

Financial Information� Consolidated Sales

Total PBU EBU FBU

2005 2006 2007 2008 2009

(100 million yen)

(FY)

478

318

231

1,027

536

384

183

1,104

509

398200

1,108

580

335

211

1,126

493

315

139

948

0

100

200

300

400

500

600

1000

1100

1200

� Operating Income, Net Income

Operating IncomeNet Income

2005 2006 2007 2008 2009

(100 million yen)

(FY)

130152

109

-69

1467

85 77

-99

1

-100-80-60-40-20

0

20406080

100120140160

� Sales by Region

(100 million yen)

Japan257

North America163Europe

228

China98

Asia andOceania

116

Others84

Less than 100 million yen omission

1 2TOPCON CSR Report 2010 TOPCON CSR Report 2010

〈 About the TOPCON Website〉

�The Social and Environmental Activities (CSR) page contains the PDF files of this and previous CSR reports, as well as addition-al environment-related information not covered in the CSR report, and our Business Conduct Guidelines and CSR Policy.

http://global.topcon.com/csr/index.html (Social and Environmental Activities (CSR))

http://global.topcon.com/csr/code.html (TOPCON Code of Business Conduct)

http://global.topcon.com/csr/policy.html (Major policies of CSR)

�The Investor Relations page provides information about stocks and financial performance, IR website award that TOPCON hasreceived and so on.

http://global.topcon.com/invest/index.html (Investor Relations)

TOPCON Code of Business Conduct states, "TOPCON will havecommunication widely with the society and disclose the correctcorporate information appropriately on a timely basis." In linewith this commitment, the TOPCON website provides informationas required by and in accordance with applicable laws and stockexchange regulations.In addition, TOPCON will provide timely and accurate information

that may be of interest to our stakeholders.The TOPCON website has been highly evaluated by several ratingagencies.For details, please check the Investor Relations page on thewebsite.

Company Overview

http://global.topcon.com/about/index.html (Corporate Profile)

http://global.topcon.com/invest/finance.html (Financial Results)

PBU : Positioning Business UnitEBU : Eye Care Business UnitFBU : Finetech Business Unit

Practicing a management conceptThe positioning, Eye Care and Finetech business-es of the TOPCON GROUP are closely related toour daily lives as they serve the needs of socialinfrastructure, medical care and high-tech areas.In that respect, our businesses are of great inter-est to society.I believe that practicing our management philoso-phy, "TOPCON will widely contribute to thehuman society through corporate activities.", andaiming to become a group in which employeesare proud, and that enjoys the confidence of thesociety is the management to fulfill our socialresponsibility.We have our predecessors' thought incorporatedin the Management Philosophy as a startingpoint, to have a clear vision for the future. In anykind of business situation, we will promote CSRManagement.Especially, a viewpoint from consideration of theglobal environment, we have a common slogan"Hand down the Irreplaceable Global Environ-ment to the next generation in a sound status".With this in mind, we will realize resource andenergy savings by developing environmentally-conscious and environment-contributing prod-ucts.

Practicing CSR Activities inGroup-globalThe TOPCON GROUP is global that approximatelyhalf of the employees of the group are workingoutside of Japan and sales of overseas are morethan 70%.In each country and area, legislations, socialnorms, history and culture of its society are dif-ferent and employees' senses of values are vari-ous. Therefore, in order to promote CSR manage-ment all together as a group, it is important foreveryone to share the basic sense of values andin October 2008, we put Basic Policy for CSR inthe statutory form.

Furthermore, as president of TOPCON CORPORA-TION, I will focus on cultivating human resourceswho share the management principles of theTOPCON GROUP and have the ability to commu-nicate clearly with all stakeholders and workinternationally, respecting cultural differences.Also important is the development of an environ-ment in which all employees of the TOPCONGROUP keep corporate social responsibilities inperspective at work.

Respecting the spirit of the Unit-ed Nations Global CompactThe TOPCON GROUP participated in the UnitedNations Global Compact in October 2007.At the same time, the TOPCON GROUP became amember of Global Compact Japan Network (GC-JN). In 2009, the TOPCON GROUP joined its CSRreporting working group, thereby supportingefforts at advancing and improving CSR reportingin Japan.The Ten Principles of Global Compact (GC10)have been reflected to our strategies, culture anddaily works to uphold the utmost of integrity in allof our business practices.As the sense of values of the TOPCON GROUP,TOPCON reflected it to Basic Policy for CSR andthe TOPCON Code of Business Conduct and laidthe foundations to achieve responsible corporateactivities for our stakeholders.The TOPCON GROUP will promote CSR activitiesthrough corporate activities and is ready to fulfillits responsibility and raison d'etre as a corporategroup and come up to your expectations.I'd be grateful for your suggestions and feedback.

United Nations Global CompactIn October 2007, the TOPCON GROUP participated in the GlobalCompact (GC), a United Nations initiative for a framework of uni-versal principles on human rights, labour standards, the envi-ronment and anti-corruption, and declared that it would makethe GC principles as an integral part of business activities.In light of this, the TOPCON GROUP has formulated a basic CSRpolicy that reflects the spirit of the GC and revised BusinessConduct Guidelines.In addition, the TOPCON GROUP has added a topic on the GC tothe in-house training/coaching textbooks in order to instill itsideas into the minds of all employees.

At the GC-JN CSR reporting working group, we reviewed CSRreports from business organizations and facilitated the sharingof information about excellent reports among all members.The TOPCON GROUP was involved in selecting and nominatingcandidates for Notable COP to the United Nations.

Fostering CSR Manageme nt as a Corporate CultureMessage from Top Management

�HUMAN RIGHTSPrinciple 1 Businesses should support and respect the pro-

tection of internationally proclaimed humanrights; and

Principle 2 make sure that they are not complicit in humanrights abuses.

�LABOURPrinciple 3 Businesses should uphold the freedom of asso-

ciation and the effective recognition of the rightto collective bargaining;

Principle 4 the elimination of all forms of forced and com-pulsory labour;

Principle 5 the effective abolition of child labour; andPrinciple 6 the elimination of discrimination in respect of

employment and occupation.�ENVIRONMENT

Principle 7 Businesses are asked to support a precaution-ary approach to environmental challenges;

Principle 8 undertake initiatives to promote greater environ-mental responsibility; and

Principle 9 encourage the development and diffusion ofenvironmentally friendly technologies.

�ANTI-CORRUPTIONPrinciple 10 Businesses should work against corruption in

all its forms, including extortion and bribery.

The Ten Principles

http://www.unglobalcompact.org/(United Nations Global Compact)

TOPCONCSR

Mind


CSR Mind

TOPCON CORPORATIONPresident

Based on the management concept and management policy of the TOPCON GROUP, and to promote CSRbased on ten principles which the U.N. Global Compact advocates, a basic policy and organization commonto the TOPCON GROUP were established.

PositioningBusiness UnitTOPCON's Positioning Business Unit providesprecise positioning products and solutions forthe global surveying, construction, agricul-ture, civil engineering, mapping and GIS, assetmanagement and mobile control markets.Topcon entered the agricultural industry in2007 and developed cutting-edge precisionagriculture systems that allow automaticsteering and appropriate fertilizer applica-tions, thereby improving agriculture produc-tivity and reducing impacts on the environ-ment.

System110, System150, Sys-tem250 and CropSpec HelpSecure Food SafetySystem 110, an entry-model guidance system,makes possible the uniform application of fertiliz-ers any time of the day or night just by operatingthe vehicle in accordance with the LED lightbarand LCD screen. System 150 is a mid-level modelAutoSteering system that can significantly increasesteering accuracy thanks to the centimeter gradeRTK-GNSS receiver. The high-end System 250 hasa variable rate control in addition to AutoSteering.This enables to optimize the amount of seed andfertilizer to be applied to each section. The appli-cation rate can be controlled in real-time using theCropSpec, an innovative on-the-go nutrient sensorthat represents the expertise of over 70 years ofTopcon's optical sensor technologies.The Topcon Precision Agriculture systems improveoperational efficiencies, offering access to a data-base of fertilizers and pesticides that have beenapplied, thus contributing to food safety. Specifi-cally, this will cutback in the use of fertilizer andfuel, as well as agrichemicals and CO2 emissionsto bring about an environment-friendly agriculturebusiness.

Eye Care Business UnitThe Eye Care Business Unit offers oph-thalmic instruments and IT solutions forexamination, diagnosis and treatmentas well as eyeglass lens grinding equip-ment and other machines for opticians.(For a description of ophthalmic instru-ments, see "Relationship Between TOP-CON Products and Society" on pages 9to 10.)

IMAGEnet, an Ophthalmic Support System,Helps Improve Medical Care Quality ThroughIntegrated Information ManagementIMAGEnet allows integrated management ofimages and clinical data captured by variousophthalmic instruments, such as fundusimages, vision acuity data, intraocular pres-sure data and so on. A suite of software pro-grams allows you to analyze images and per-form statistical work easily, so you can makethe most use of the captured data. IMAGEnetprovides powerful support for accurate oph-thalmic diagnosis and saves a lot of timerequired for diagnosis. Additionally, IMAGEnetcan be linked with an electronic medicalrecord system and enables secure sharing ofdata across different medical institutions viathe Internet. This helps improve medical carequality.

Finetech Business UnitThe Finetech Business Unit mainlyoffers inspection equipment for semi-conductor and flat-panel display (FPD)manufacturers.It also provides e-beam units, opticalengines for projectors, optical devicesfor DVD drives, and optical instrumentsfor aerospace applications.

Vi-SW150 Specialized in ChipInspection for LED Saves Energy.Light emitting diodes (LEDs) have come intothe spotlight as energy-efficient lightingapparatus because they consume less powerand have longer life span than incandescentlight bulbs and fluorescent lights. Advancednations and areas such as Japan and theEuropean Union, each government havedecided to ban the production and sales ofincandescent light bulbs basically by around2012. Because of this, LED light bulbs areexpected to find more widespread use astheir replacements. Additionally, when itcomes to Flat Panel Displays, LED liquid crys-tal televisions that use LEDs as backlightsinstead of fluorescent lights are becomingpopular. The TOPCON GROUP offers inspec-tion equipment specifically designed for man-ufacturing testing of LEDs to contribute to areduction of CO2 emissions.

TOPCONCSR

Mind

1 TOPCON will locate CSR activities in the center of busi-ness and work on it intentionally in order to build, shareand implement the sense of values and standards suit-able for global enterprise.

2 TOPCON will, to the extent of our influence, support andimplement the rules and regulations that are globallyapproved regarding Human Rights, Labor Standards,Environment and/or Anti-Corruption as declared in THEGLOBAL COMPACT.

3 TOPCON will make a social contribution voluntarily andactively through developments, production, sales andservices of useful products.

4 TOPCON will promote an environmental managementthrough the creation of environmentally-consciousbusiness process and through providing with environ-mentally-conscious products and services.

5 TOPCON will strive to establish CSR activities in everyofficer and employee's daily work and to infiltrate andestablish them within global TOPCON group compa-nies.

6 TOPCON will acquire understanding and confidence ofall the stakeholders of TOPCON group companies byproviding with information actively.

The TOPCON GROUP introduces various products to the global market by leveraging its core competency inoptics accumulated since its establishment. Following is an overview of the three business units of the TOP-CON GROUP and their products from a CSR point of view.

●● Basic Policy for CSR●●

●● Relationship between stakeholders ●●and the TOPCON GROUP

Consumers&

customersProviding productsand services

Skill development, fair evaluation,safety, health, etc.

National andlocal

administrationNPOs & citizen

groups

SuppliersStockholders

&investors

Public information disclosure, dividend distribution, governance, etc.

Third-party opinions, cooperative works

Observing laws and regulations

Localcommunity

Environmental protection, plant tours, and linkage for local revitalization

Employees

Specifying materialprocurement policiesand promoting SCM

TOPCONGROUP

In addition to CSR reports and websites, the TOPCON GROUP utilizes various channels of communication.

Exhibitions, academic conferences,publications,call centers

Legal documentsSupport for environmental administration

RoHS compliance assurance systems

CSR INFO-LINK Code of Business Conduct

Support for local events

Stockholder newsletters IR magazines

Support for activ-ities, information exchanges

Exhibitions, academic conferences,publications,call centers

Legal documentsSupport for environmental administration

RoHS compliance assurance systems

CSR INFO-LINK Code of Business Conduct

Support for local events

Stockholder newsletters IR magazines

Support for activ-ities, information exchanges Linkage

Observinglaws and

regulations

Risk-Compliancecommittee

BCPcommittee

InformationSecurity

committee

ExportControl

programs

Pharmaceuticalauditing

committee

Environment

GlobalEnvironmentConference

EnvironmentalProtectioncommittee

Qualityassurance

President

Committee members (Heads of each division)

Secretariat: (Div. in charge of CSR)

Chairman of TOPCON CSR Committee (Executive Officers in charge of CSR)

QScommittee

Customersatisfaction

CS activity

Human rightsand employee

satisfaction

Linkage

Employmentof persons with

disabilities

Safety andhealth

committee

Gender equalsociety

Welfarecommittee

Socialcontribution

SocialContributions

Activities

Company's Committees

TOPCON CSR Committee

TOPCON's CSR activities are conducted following the policydecided by "TOPCON CSR Committee", and developed withinglobal TOPCON GROUP companies through linkage with CSR-related divisions and other committees.

●● Structure of Promoting CSR●●

Introduction of BusinessCSR Mind


http://global.topcon.com/about/philosophy.html(Management philosophy)

http://global.topcon.com/csr/code.html(TOPCON Code of Business Conduct)

http://global.topcon.com/invest/governance.html(Corporate Governance)

http://www.topcon.co.jp/en/product/index.html(Products)

Based on the basic policy for CSR, the TOPCON GROUP offers productsand services that will help address social challenges. At the sametime, the TOPCON GROUP attaches great importance to communica-tions with its stakeholders and endeavors to make social contributionsthrough its business activities.

The TOPCON CSR Committee reviews year-by-year achievements regarding our CSR activities, and setsgoals and plans for the next year.In 2009, TOPCON carried out a wide range of activities, including the formulation and implementation ofa CSR Month and a business continuity plan (BCP).

CSR Mind The measure and target of CSR (extract)

Category Item Key Goals and Plans for FY2009 Key Achievements in FY2009

Managem

entReport

Corporate Governance

�Establishment of a CSR Month (thorough implementation andraising company-wide awareness)

�Implementation of corporate governance & CSR seminars (forsenior managers and new managers)

�Set CSR Month and held seminars and various events

�Held seminars for senior managers and new managers

ActivityReport

Communications

Note: The goals and plans for the FY2009 may be different from those stated in the 2008 CSR report for greater details.* TM-1 (Time to Market No.1) is a project designed to put world-leading products ahead of the competitors.

Key Goals and Plans for FY2010

�Issuing a reference leaflet on the code of business conduct anddisseminating it throughout the TOPCON GROUP

�Continuing upon reviews

Risk Managementand Compliance

�Establishment of BCP and evaluation by top management�Implementation of Risk-Compliance seminars (for senior man-

agers and managers)�Implementation of Topic-by-topic compliance seminars

�Drew up BCP action plan and submitted a progress report to the management�Held seminars for all managers and senior managers

�Held seminars for all qualified

�Reviewing the BCP and holding BCP training�Holding risk-compliance seminars (for senior managers and

managers) (Continued)�Holding Topic-by-topic compliance seminars (continued)

Social Responsibilities

�Providing environmentally conscious and resource-saving prod-ucts, and products and services useful for improving medicalcare, health care and life in general

�International volunteer assistance for developing countries�Assisting of medical and academic institutes (product donation

and sponsor seminars)

�Launched products that help address social challenges (globalwarming, aging population, depleting resources)

�Assisted in eye exams (sent staff and lent equipment)�Carried out both plan

�Providing environmentally conscious and resource-saving prod-ucts, and products and services useful for improving medicalcare, health care and life in general. (Continued)

�International volunteer assistance (Continued)�Assisting of medical and academic institutes (product donation

and sponsor seminars). (Continued)Enforcing EnvironmentManagement System

�Increasing the number of companies to be auditedEnvironmental auditing: 8 group companies

�Increased the number of companies auditedPerformed environmental audits on 8 group companies

�Increasing the number of companies to be audited.Environmental auditing: 10 group companies

Providing EnvironmentallyConscious Products andServices

�Providing environmentally conscious productsRate of ECP sales: Over 50% of sales

�Increased the sales of environmentally conscious product57% of sales

�Providing environmentally conscious products.Over 60% of sales

EstablishingEnvironmentallyConscious Busi-ness Processes

�Implementation of measures against global warming. (Reductionin CO2 emissions)Total emissions relative to 1990 (per unit of sales): 11% reduction(10.76)

�Effective use of resourcesTotal waste volume relative to 2000 (per unit of sales): 19.4%reduction (1.026)

�Management of chemical substanceUse of organic solvents: 72% reduction (3,335 kg)

�Implemented measures against global warming (Reduction inCO2 emissions)Total emissions relative to 1990 (per unit of sales): 13.7%reduction (10.43)

�Effective use of resourcesTotal waste volume relative to 2000 (per unit of sales): 18.3%reduction (1.040)

�Management of chemical substanceUse of organic solvents: 78% reduction (2,612 kg)

�Implementation of measures against global warming. (Reductionin CO2 emissions)Total emissions relative to 1990 (per unit of sales): 25% reduc-tion (less than 9.06)

�Effective use of resourcesTotal waste volume relative to 2000 (per unit of sales): 20%reduction (less than 1.018)

�Management of chemical substanceUse of organic solvents: 72.5% reduction (less than 3,275 kg)

Promoting Envi-ronmental Com-munication

�Strengthening of cooperation with administration and local resi-dents

�Assisted in the development of local environmental seminar programs�Planned and joined the operating committee for a local environmental event�Held "TOPCON Green Christmas" and cooperated in local dis-

aster prevention programs

�Strengthening of cooperation with administration and local resi-dents

Responsibilitiesto Customers

�Launching products in advance of market demands

�Assisting group companies in improving quality assurance sys-tems

�Implementation of market quality-emphasized measure and qual-ity elaboration strengthening measure for the improvement inquality of design

�Making customer information visible for promotion of upper-stream loading

�Developed and released new products through promotion ofTM-1 activities*

�Made rules on a total quality assurance system across groupcompanies

�Utilized tools and methodologies in upper-stream

�Made a scheme for speeding up customer information analy-sis

�Developing and releasing new products through promotion ofTM-1 activities (Continued)

�Improving the total quality assurance system across group com-panies

�Improving pre-verification capabilities in upper-stream and pre-vention of quality problems

�Promoting prompt feedback of customer information

Responsibilitiesto Stockholdersand Investors

�Providing information to stockholders and investorsImproving the corporate websites and corporate brochures, andholding IR meetings

�Disclosed IR informationUpdated the IR page on the website, revised a corporatebrochure and held IR meetings

�Providing information to stockholders and investorsMaintaining external evaluations and increasing analyst cover-age

Responsibilitiesto Employees

�Implementation of preventive measures (restricts working hours)based on medical checkup results

�Implementation of no-smoking programs (smoking cessationsupport)

�Implementation of management training programs on safetyassurance obligations

�Fed back medical exam results and advice from industrialphysicians to workplaces

�Held no-smoking seminars and restricted smoking areas.(Indoor places are now completely smoke-free)

�Held seminars for all managers

�Drew up rules for power harassment prevention

�Improving physical and mental checkup items and implementation ofpreventive measures (restricts working hours) based on their results

�Implementation of no-smoking programs (smoking cessationsupport).

�Implementation of management training programs on safetyassurance obligations

�Drawing up a Basic Policy on Human Resource Development.

Responsibilitiesto Suppliers

�Issuing TOPCON GROUP CSR Report�Issuing group media of CSR (CSR INFO-LINK)�Participating in Global Compact Japan Network (GC-JN) working group�Posting corporate information on the website in a timely fashion

�Issued TOPCON GROUP CSR report in June�Issued group media for CSR (CSR INFO-LINK) four times�Participated in the GC-JN working group (CSR Report)�Added information about the environment and local events for

local contribution�Communications with nonprofit organizations

�Issuing TOPCON GROUP CSR Report (Continued)�Issuing group media of CSR (CSR INFO-LINK) (Continued)�Participating in the GC-JN working group (CSR Report, etc.)�Posting corporate information on the website in a timely fashion

�Social contributing activities in collaboration with NPOs

TOPCONCSR

Mind

Comments from the Chairman of the CSR Committee�The summary table shown at left gives a snapshot of the CSR

activities we carried out in 2009 and their results.While we successfully met the goals for many action plans, wefaced challenges in executing some tasks. The 2010 plans willbe built on these successes and failures.The summary is broadly divided into "management report"such as risk-compliance and "activity reports"as per stakehold-er . Let me add a few words on each category.

�The management report mainly focuses on the tasks intendedto disseminate the importance of compliance, a fundamentalprinciple and prerequisite for TOPCON's existence.The utmost goals of these tasks are to make managers andemployees acquire professional knowledge required to placethe highest priority on compliance and to let them develop akeen mind and good business sense so as to be able to graspthe changes needed. These abilities are of absolute value forbusiness operation and decision-making.

�The activity report deals with the pressing issues thehumankind is facing, such as global warming, depletingresources, aging society and so on. It describes contributionsmade by TOPCON in two aspects: offering socially useful prod-ucts and reducing environmental impacts for the entire lifecycle of a product.

�The summary also contains goals and plans for the sake ofeach stakeholder. The universal principles for CSR are as fol-lows.

�Effective use of a RoHS compliance assurance system for newproducts and parts

�Extended RoHS compliance investigation to those productsoutside the scope of RoHS directives

�Extending applications of the RoHS compliance assurance sys-tem to overseas suppliers


Universal CSR Principles

Customers

Anticipating diversifying and increasingly complex marketneeds and strives to improve quality at each stage: design,production, maintenance, etc. The objective is to offerhighly reliable products to contribute to the growth andprosperity of customers.

BusinessPartners

Placing high value on mutual trust and partnership withbusiness partners such as agents and suppliers and estab-lishing win-win relationships through information sharingand close cooperation.

Employees

Respecting individuality and different values, fosters a spirit of cre-ativity and innovation so that employees can manifest their true abili-ties. Developing a corporate culture that encourages open discus-sions, creating a comfortable workplace in which human rights arerespected so that TOPCON will be a company that all employees canbe proudly work at.

Internationaland LocalCommunities

As a corporate citizen, respecting global standards regardinghuman rights, the environment, labor standards and anti-cor-ruption, and contributing to the creation of a sustainable globalmarket. Remaining a company that deserves trust and respectthrough creation of new jobs, proper tax payment, beneficialsocial works and environmental protection activities.

Stockholdersand Investors

Seeking to maintain continuous growth, enhances corpo-rate value and disclosing appropriate information in a time-ly fashion in order to strengthen good relationships withstockholders and investors.

TOPCONSpecialFeature


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● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Slit LampProvides a magnified view of the eye surface.

Specular MicroscopeMeasures endothelial cell den-sity and size for a corneal exam.

Operation Microscope Used for surgery for vari-ous eye diseases.

Optical Coherence TomographyProvides fundus images and 3D tomo-grams or cross-sectional views of the retina.

Retinal CameraProvides a view of the fun-dus, or the interior surface of the eye.

Auto Refractor/KeratometerAutomatically measures the eye-sight and tests eye conditions.Also used when making eyeglas-ses and contact lenses.

Computerized TonometerMeasures the intraocular pressure without touching the eye.

Wave-Front AnalyzerProvides an automatic evaluation of what the vision of a patient with a corneal prob-lem or early cataract is like. Also gives useful data for selecting intraocular lenses.

INTERNET

IMAGEnet described on page 6 can be used in tandem with an electronic medical record system to share images and clinical data captured by not only the ophthalmic in-struments shown here but many other instruments in a hospital. IMAGEnet also allows doctors to securely trans-fer data to another hospital for specialist consultation.

ENTRANCE EXIT

Digital Imaging SystemDigital Imaging System

Relationship between TOPCON Products and SocietyIncrease of eye diseases such as glaucoma, as well as diabetes and high blood pressure are becoming a socialissue, due to the aging of the population and changes in eating habits.An eye examination may lead to early detection and treatment of these diseases.Here is a special feature on some products from the Eye Care Business Unit and how they relate to your health care.

SpecialFeature

Reducing the discomfort and unease of an eyeexaminationTOPCON has endeavored not only to achieve optimum instrumentperformance and user friendliness but also to mitigate the discom-fort and unease patients feel at the time of an eye examination. Forexample, TOPCON has developed a non-mydriatic retinal camera,which can capture images with low flash levels, reducing flashglare.Additionally, the portion that touches the face has a gentle curva-ture. This reduces stress on the patient and makes it easy to giveassistance to those who find it difficult to keep the eyelid open.

Early Detection and Early TreatmentTOPCON has developed a 3D optical coherence tomographer (OCT)that allows 3D capturing of the portions that are posterior to the eyefundus. The 3D OCT allows early detection of lesions lying behindthe eye that could not be diagnosed only from the fundus surfaceconditions.

Pursuing "the Quality of Vision", from just seeingto seeing with clarityIn addition to eyeglasses and contact lenses, refractive eye surgery,such as LASIK, is now popular for the correction of myopia, hyper-opia and astigmatism. Also, as the population ages, more and morepeople are having cataract surgery. When it comes to cataractsurgery, the quality of vision (QOV) is now considered equally impor-tant as recovering a non-blurred vision. TOPCON has developed awave-front analyzer that provides a new effective way of measure-ment and analysis of the visual performance and helps improve thepost-operative QOV.

Developing Operation Microscopes That Back UpDelicate Ophthalmic SurgerySophisticated techniques and experience are required for the surgery ofretinal detachment that might lead to the loss of eyesight. To helpimprove the efficiency of retinal detachment surgery, TOPCON has devel-oped an operation microscope with a new type of lighting that frees bothhands of the operator and thus alleviates his/her fatigue and strain.

The Eye Care Business Unit offers products that connect together a variety of visions including "promoting a healthy lifestyle" "provid-ing sophisticated and efficient clinical examinations," "offering quality eyeglasses", etc..

Considerations for Patients and Doctors Creating Socially Useful Products(Interview with an employee)I belong to the OCT Group of the Eye Care Manufacturing Dept., which isresponsible for the assembly, calibration, final testing and packing of 3D OCTinstruments.In 2009, the demand for OCT instruments sharply increased worldwide; so wereviewed our production processes really quickly. 3D OCT is a state-of-the-artinstrument that requiresadvanced production tech-niques. All the group mem-bers kept paying utmostattention to assure the high-est possible quality whiletrying to fill orders. All of usare proud that our 3D OCTinstruments are being usedall over the world for theearly detection of diseases.

Glossary�Glaucoma : a disease that leads to visual field loss and pro-

gresses to blindness. It is the primary cause ofmidstream vision loss among the Japanese.The condition need to be detected early to slowthe progression.

�Cataract : a disease that causes the crystalline lens of theeye to become progressively opaque, resulting inblurred vision. In most cases, cataract can becured by surgery.

�Retina : a layer of tissue, which triggers nerve impulsesto the brain, where a visual image is formed. Itserves much the same function as the film in acamera. Retinal detachment may lead to visionloss or blindness.

�Diabetic retinopathy: damage to the retina caused by complications of

diabetes, which restricts ocular blood flow due toa high blood sugar level. It leads to decreasedvisual acuity and eye floaters.

�Age-related macular degeneration: a disease that affects the macula because of the

damage to the retina. It results in a loss or distor-tion of vision and blindness.

�Eye fundus: the interior surface of the eye. It is the only partof the human body where blood vessels aredirectly visible. The eye fundus gives signs ofdiseases of the internal organs that affect bloodvessels, such as diabetes and hypertension.

�Intraocular pressure (IOP): the fluid pressure inside the eye. A high IOP can

cause optic nerve damage or visual field loss.�Mydriasis : dilation of the pupil of the eye. It causes blurred

vision or glare. Stimulant eye drops were used tocause dilation of the pupil prior to fundus exami-nation until a non-mydriatic retinal camera wasinvented.

When do you see an eye doc-tor? When you have an eyeproblem? As part of a regularphysical check-up? There maybe several reasons.The products from TOPCON'sEye Care Business Unit arebeing used for the examina-tion, diagnosis and treatmentof eye diseases, as illustratedat right.TOPCON contributes to theearly detection and treatmentof diseases and thus to theoverall health of the eye andthe body.

Mr. Toga, Manager ofManufacturing Section

TOPCONCSR

Managem

entReport

Here is a report about CSR activities that TOPCON GROUP has carried out.

CSR Management Report

�� Holding of events for CSR Month ��

Up until fiscal 2008, we had set June as the "EnvironmentMonth" and educated employees about environmentalissues by holding seminars and various events.From fiscal 2009 onward, we have set June as the "CSRMonth." We have held CSR seminars, cast information aboutour CSR activities and held various events.Main Events�Cast a message about the CSR Month throughout the

TOPCON GROUP� Matched business practices with the management philos-

ophy and conduct guidelines � Cultivated a corporate culture that encourages open dis-

cussions� Emphasized work-life balance and health care�Held a global environment conference� Reported the promotion of environmental protection� Environmental management revue, etc.�Education on the CSR and environment� Held CSR and environment educations for non-managerial

employees in addition to environment educations tailoredto the ISO 14001 requirements.

� Held risk-compliance educations including CSR for man-agerial employees

�Published CSR Report.� Published both Japanese and English versions and posted

them on our website.�Other� Held environmental events, such as making inspections of

waste stations to inspect the state of waste separation.

��

We have been issuing CSR INFO-LINK, an in-house newslet-ter, to convey the basic policy on and experiences of CSRactivities to the group companies both in Japan and abroad.The objective is to share the value of CSR and activity infor-mation. In fiscal 2009, we issued CSR INFO-LINK four times.Contents of CSR INFO-LINK �Basic policy for accomplishment

of CSR management (Messagefrom president)

�Message from the chairperson ofthe CSR Committee prior to theCSR Month

�Establishment of regulations forpower harassment prevention

�TOPCON GROUP and Biodiversity

Enhancing CSR Awareness ThroughCSR Information Distribution

�� Drawing Up a BusinessContinuity Plan (BCP)

If a company is not prepared for emergencies, its businessmay be interrupted for a long time in the event of a world-wide flu pandemic or a big earthquake. It is important toreduce operational risk and minimize adverse impacts oncustomers and other stakeholders. Formerly, TOPCON had aplan for disaster damage prevention that documented guide-lines for the protection of employees and their families, aswell as assistance for recovery of the afflicted areas.

Additionally, from 2008 onward, the TOPCON GROUP hasbeen working on a business continuity plan (BCP) to workout how to recover critical business functions such as prod-uct/service offerings in the event of a disaster. In 2009, weconcentrated on the development of action plans for the crit-ical business functions.These action plans were implemented when a pandemic of anew flu strain (A/H1N1) broke out.

�� Risk-Compliance ��

About Our Risk-Compliance EffortsThe management philosophy of the TOPCON GROUP is to fol-low social and ethical norms, not to mention laws and regu-lations, and contribute widely to the betterment of life of thehumankind through fair corporate activity. We are trying toheighten the awareness of the TOPCON GROUP across theboard regarding compliance. To this end, we have formulat-ed the TOPCON Code of Business Conduct that stipulate asense of values, which , from the compliance viewpoint, allofficials and employees should share. This has been adoptedby not only the TOPCON headquarters but all group compa-nies in and outside of Japan.Moreover, we have continually held training educations forthose in the managerial positions who play pivotal roles inthe corporate organization as follows. In fiscal 2008, we heldrisk-compliance educations for managers, and in fiscal2009, we did have similar educations for senior managersand all newly appointed managers; the total participantsadded up to 100.The objective of the risk-compliance educations is not onlyto give general knowledge about compliance to the partici-pants but make them fully understand the policy andscheme of the TOPCON GROUP. These seminars encompass:1) legal risks from a global standpoint, 2) considerations fordecision-making and risk evaluation, 3) safety and healthpolicy; mental care and so on.Besides, in order to prevent law violations and legal prob-lems, we have also strived to raise legal consciousnessamong non-managerial employees. As part of such efforts,we periodically post risk-compliance episodes related todaily business operations on a bulletin board together withan easy-to-understand explanation.

�� Internal Control Activities ��TOPCON has worked on internal controls, aiming to ensurelaw observation, and honest and transparent management.

��

TOPCON believes that it is one of the management's signifi-cant obligations to enhance an internal control system andthat it should be put to active use to achieve corporateobjectives. In May 2006, the board of directors approvedproposals regarding "System for assuring the appropriate-ness of business operations" ie, "Internal control systempolicy" based on the Companies Act of Japan. It was reflect-ed to "The report on corporate governance" submitted to theTokyo Stock Exchange.In light of this, TOPCON assisted its subsidiaries in maintain-ing and improving their productivity, compliance, risk man-agement and so on in order to strengthen internal controlsacross the TOPCON GROUP. In fiscal 2008, the FinancialInstruments and Exchange Law (so-called J-SOX) becameeffective for companies listed in Japan, which stipulates therequirements for enhanced financial auditing and an estab-lishment of an internal control system. In response, TOPCONhas set up a committee specifically designed to assess theinternal controls over financial reporting objectively. Like-wise, each of the group companies has set up an internalcontrol system and undergone an assessment. In the future,we will further enhance the internal control systems, whichhave been reviewed independently by each group company,to ensure that they will be implemented properly. We willalso aim to enhance the reliability of financial reporting ofthe entire TOPCON GROUP through an assessment of internalcontrols over financial reporting.

Enhanced Internal Control Systemand Provisions for J-SOX

�� Internal Control Activities ��TOPCON has worked on internal controls, aiming to ensurelaw observation, and honest and transparent management.

��

TOPCON GROUP has an in-house information reporting sys-tem to ensure that the employees, etc. may report risk-com-pliance information (ie, any information regarding prohibitedactions or other actions that are suspected of prohibitedactions under laws and/or TOPCON code) directly to riskmanagement supervisor, bypassing the normal office organi-zation.A total of four cases has been reported so far using this sys-tem (mainly about work disciplines). In fiscal 2009, therewas no report.TOPCON will continually inform its employees of the pres-ence and significance of this system so as to find potentialproblems early and treat them promptly.

��

Using the checklist for Self-assessment on the internal con-trol system, 35 companies in and outside of Japan havebeen audited.Internal controls were in place over 86% of purchasing,assets, information security, etc., 9% points up from fiscal2007. TOPCON will continue to provide guidance to eachgroup company on further improving its internal controls.

In-House Auditing ofTOPCON GROUP

In-House InformationReporting System


Risk-compliance education for managers

INPUTMaterials*2 FY09 FY08 Iron (kg) 3,063 2,942Copper (kg) 594 1,831Aluminum (kg) 2,563 1,733

Energies Electric (1,000kWh) 11,263 12,067Gas (1,000m3) 84 95Petrolium (kl) 36 43

Water contaminants Drainage volume (m3) 44,978 48,213BOD (kg) 2,522 3,228SS (kg) 3,355 3,490

Water resouce Potable water (m3) 29,051 28,916industrial water (m3) 16,701 20,190

Chemical substances Amount of use (kg) 2,130 2,010

OUTPUTTOPCONBusinessActivities

Procurement

Research,development

and designing

Manufacturing

Greenhouse gas FY09 FY08

CO2 (t-CO2) 4,018 4,318

Chemical substances Wastes (kg) 1,500 1,290

Air contaminants NOX (kg) 72 64

Discharge*5

Total discharge (tons) 420 597

*1: The above statistics are based on the data collec-ted at the TOPCON headquarters factory. All val-ues are actual measurements.

*2: Resources and materials in the INPUT column are for goods processed at the TOPCON factories.

*3: The up-to-date CO2/kWh value is used as the CO2 emission coefficient of electricity.

*4: Includes items that are beyond the scope of reduc-tion requirements.

*3

Other Environmental InformationPlace of business defined bythe City Planning Law : Light-industrial districtName of district : Light-industrial districtLot area : 23,499m2

Regulations on specified plants : None (Tokyo Metropolitan Environmental Security Ordinance)

Water drainage : SewageAcquisition of ISO14001 : September 29, 1997Approval Organization : JACOLead office and division name: Administration & CSR Dept.Persons responsible for environmental protection : 4 full-time employees

Global CO2 Emissions Amount of Global Waste Amount of Global Chemicals Usage

Total 82.3

Total 18,663

Total 20,305

Total 1,154

Total 1,367

4,018 4,985 7,548

4,318 4,474 9,570

1,500 612

1,483 461

0.1

(ton-CO2)0 5000 10000 15000 20000

2008

2009

(FY) (FY)

413 370 118 180 72

597 302 120 223 1252008

2009

(ton)0 200 400 600 800 1000 1200

TOPCONDomestic group companies Asia U.S.A

EU

TOPCONDomestic group companiesAsiaU.S.A

EU

33.4 12.4 22.6 5.8 8.0

(ton)0 20 40 60 80

IPA1-BPOrganic SolventAcid and AlkaliPaintOther

Total 18,663

Total 20,305

Total 1,154

Total 82.3

Total 1,367

2009

(FY)

CSR Management Report�� Strengthening an Export Control System ��

1. Revising "TOPCON Export Control Program"TOPCON has reviewed and combined the "TOPCONExport Control Program" and the "Export Managementand Compliance Program for U.S. Products and Technolo-gies" according to the revisions of the "Foreign Exchangeand Foreign Trade Control Law" of Japan, U.S. laws andso on.

2. Conducting audits on group companiesTOPCON conducts audits on its group companies everyyear, as requested by the Ministry of Economy, Trade andIndustry (METI) of Japan. In fiscal 2009, TOPCON auditedfive subsidiaries in and outside of Japan to ensure thatthe TOPCON Export Control System is properly imple-mented.

��

1. Holding export control educationsIn order to raise awareness regarding compliance, TOP-CON holds export control educations every year for newemployees, those in the sales and engineering depart-ments, and those in charge of export. In fiscal 2009, TOP-CON held export control educations 13 times on depart-ment-by-department and hierarchy bases for a total ofapproximately 300 employees.

2. Training export control specialistsTo improve the expertise of employees involved in exportcontrol, TOPCON recommends taking "Certification examon export control" held by the Center of Information onSecurity Trade Control (CISTEC). In fiscal 2009, 11employees passed the exam; 33 employees are nowqualified.

3. Export control meetingsThe Export Control Department and related sections meetregularly to share information about major internationaltrends and export control states in the TOPCON GROUP. Infiscal 2009, we held such meetings four times.

Maintaining and Improvingthe Export Control Regimes

�� Improving Information Security ��

TOPCON has enhanced the filtering of junk mail and suspi-cious websites, which can be a cause of unauthorizedaccess and leakage of information. This has made it possibleto remove junk mails that accounted for 90% of the receivedmails and restrict access to harmful websites. Consequently,TOPCON has enhanced security against computer virus andspyware infection.

�� Information Security Lecture ��

We invited an external specialist to a lecture on informationsecurity management entitled "Episodes of InformationSecurity Breaches, and Possible Countermeasures andSupervisor's Roles." Approximately 75 managers in eachdepartment and section attended the lecture. After the lec-ture, we sent the materials and DVD discs of the lecture toall group companies in Japan.

�� Information Security Education ��

TOPCON holds information security education (including per-sonal information protection) every year for the employees ofgroup companies in Japan.In fiscal 2009, approximately 2,200 people, or almost 100%of employees, at 10 companies completed the course.Additionally, we held training courses on internal auditing ofinformation security and personal information protection. Infiscal 2009, 11 employees of group companies were quali-fied as auditors.

Meetings about export controlThe Export Control Department provided up-to-date information onexport control and exchanged opinions and ideas with other sections.

Results of Environmental Training FY2009 （名）


Environmental Burdens Caused by TOPCON (FY2009)Environmental burdens caused by our business activities such asproduct development, procurement and production include energy,water and chemical use; CO2 and exhaust gas emissions; drainageto sewers; waste disposal, etc. In this section, these environmental burdens are presented in twocategories: INPUT and OUTPUT, to show the balance of energy andmaterials.TOPCON continually endeavors to manufacture better and more

environmentally friendly products by understanding where environ-mental burdens occur and working out countermeasures to mini-mize them. The total amount of CO2 emissions due to overall ener-gy consumption was 4,018 tons. The atmospheric emission ofchemicals (seven substances specified in the Tokyo MetropolitanEnvironmental Security Ordinance) was 1,500 kg. The overall out-put was reduced by 10 to 20%, compared with FY2008.

CSR Activity Report Environmental Protection Activities

TOPCONCSR

ActivityReport

http://www.topcon.co.jp/en/privacy/index.html(Privacy Policy)

Capacity Contents AttendeesGeneral employees Corporate social responsibility (CSR), environmental voluntary plans, environmental goals, etc. 927Senior Managers & Managers Overall environmental management, ISO 14001, trend in environmental legislation, etc. 303Significant machine operators Operation, control, environmental impacts and emergency measures for specific facilities, etc. 60New employees Global environmental problems, domestic and overseas legislation, ISO 14001, environmental policy, etc. 24By occupational qualification Usage of the Industrial Waste Control form, latest trend in product environmental legislation 20Internal Auditors ISO 14001, ISO renewal audit results, trend in environmental legislation, etc. 16

Total 1,350


Prevention of Global WarmingOver 90% of CO2 emissions from TOPCON derives from electricity usage. Untilfiscal last year, TOPCON had used the CO2 emission coefficient based on the1990 level. Because Tokyo Electric Power Company (TEPCO) announced anadjusted CO2 emission coefficient for electric power for fiscal 2008, TOPCONhas modified the calculation equation for CO2 emissions. TOPCON willendeavor to fulfill its voluntary plan, based on this calculation equation.Reduction of CO2 Emissions Caused by Business Activities

Company Name Achieved TimeTOPCON CORPORATION December, 2001Topcon Service Co., Ltd. March, 2003OPTONEXUS Co., Ltd. January, 2006OPTONEXUS Co., Ltd. Takine Factory May, 2007Topcon Yamagata Co., Ltd. April, 2009

Efficient Use of ResourcesGreatly affected by worldwide economic slump, TOPCON failed tomeet the goal for emissions per unit of sales in fiscal 2009. Effortsat reducing total emissions, which is a regulated index, were suc-cessful, with an approximately 150-ton decrease from the fiscal2008 level. TOPCON has set the 2010 goal for total emissions perunit of sales at 1.018, 20% down from the 2000 level

Reduction of Waste Caused by Business Activities

Reduction of Chemical SubstancesIn fiscal 2009, TOPCON accomplished the goal for the reduction of volatileorganic compound (VOC) emissions specified in its voluntary plan. TOPCONhas been trying to further reduce these emissions, led mainly by the ChemicalSubstance Control Committee. With manufacturing expected to increasegreatly in fiscal 2010, the VOC emissions will increase accordingly. Thus, TOP-CON has set the fiscal 2010 goal for VOC emissions at the fiscal 2008 level.

Reduction of volatile organic compound emissions

50

60

70

80

90

100

2006 2007 2008 2009 2010

(%)

(FY)

83.9%

82.5%

81.9%

81.2%

101.9%

81.2% 80.5%

81.6%

80.0%

Voluntary PlanAchievementPlan

Government-Industry-Academia Cooperation for Pro-moting Recycling of Abrasives for Eyeglass LensesOPTONEXUS commands a substantial share for the glass lenses foreyeglasses. The abrasives used for glass lenses contain rare sub-stances that are in danger of depletion. Therefore, to realize the recy-cling of waste abrasives, OPTONEXUS has been involved in an indus-try-government-academia research project, including Fukushima Pre-fecture, since fiscal 2008.In fiscal 2009, OPTONEXUS evaluated the recycled abrasives devel-oped by the project. The evaluation shows that the recycled abrasivescan be put to practical use for the polishing process.Use of it will make it possible to reduce waste and utilize limitedresources more efficient-ly. OPTONEXUS will con-tinue its evaluation andmake it available to theentire industry throughindustry-academic-gov-ernment cooperation.

Environment Audits on Group CompaniesIn order to enhance our environmental protection efforts, TOPCONannually conducts environmental audits on manufacturing groupcompanies in Japan and abroad, which cause significant environ-mental impacts, and gives them guidance and assistance. In fis-cal 2009, TOPCON visited Topcon Yamagata, SOKKIA TOPCON(Headquarter and Matsuda) and Topcon Positioning Systems, Inc.for auditing, and performed documentary auditing of OPTONEXUS(Headquarter and Takine), the Topcon Europe B.V. group, TopconMedical Systems, Inc., Topcon Optical (Dongguan) TechnologyLtd. and Topcon (Beijin) Opto-Electronics Corporation.TOPCON assessed their environmental management systems asa whole, while focusing on the facilities and equipment that havesignificant environmental impacts and can lead to environmentalaccidents. Consequently, TOPCON determined that they had suc-

cessfully maintained an acceptable management level. Moreover,TOPCON gave guidance on improving environmental manage-ment to the facilities that handle chemical substances.

Award for Combating Global WarmingTopcon Yamagata has set up a global warming committee to promotea company-wide energy-saving campaign. As part of its efforts, Top-con Yamagata participated in the Eco Lifestyle Challenges held byYamagata Prefecture. To reduce CO2 emissionsand help curb global warming, Topcon Yamagataset eco commutation days, encouraging itsemployees to pay attention to eco-driving orcommute by train or bicycle or on foot.As a result, it was awarded for environmentalfriendliness by Yamagata Prefecture. TopconYamagata will continue to make further contribu-tions to the prevention of global warming.

Measure at global warming preventionHere are a few examples of actions we have taken tohelp curb global warming.

Using LED lightingTOPCON replaced fluorescentlights in showrooms, etc. withLED lights, which are expectedas a next-generation lightingsolution. TOPCON is planning toreplace straight tube fluores-cent lights in offices and facto-ries with LED lights, consideringtheir improvement perfor-mances and price declines.

Using Green ElectricityThe Christmas party held byTOPCON got 100% of power(3,000 kWh) from green elec-tricity to inspire visitors with theimportance of energy-saving.

Participation in the Challenge 25 CampaignFollowing the national kick-off of the Challenge 25 Campaign asthe successor of the Team Minus 6% Campaign, TOPCON hasregistered for it as a challenger.

50

60

70

80

90

100

2006 2007 2008 2009 2010

(%)

(FY)

75% 73%

62%

72%

66% 55% 67%

71% 70%


70

75

80

85

90

95

100

2006 2007 2008 2009 2010

(%)

(FY)

84%

76.4%

82% 80%

90.7%

86.3%

84.4%

93%

75%


Lecturing on the achieve-ment of research on therecycling of a cerium oxideabrasives

ISO 14001 Renewal AuditTOPCON underwent an ISO 14001 renewal audit fromJuly 22 to July 24, 2009.TOPCON has obtained certification renewal in Septem-ber 2009 for the fourth time since it was certified to ISO14001.As a result of an audit, the accreditation body deter-mined that we have maintained conformance to ISO1400 and accepted continuation of attestation.The auditors found no non-conformance, but gaveTOPCON nine minor suggestions for continual improve-ment concerning document management.

Beginningof the ISOR e n e w a lAudit

■�

TOPCON GROUP and Biodiversity(from CSR INFO・LINK No. 5, an in-house magazine)Environmental activities by business organizations have so farfocused on compliance with environmental standards andconsideration to human health. However, the activity servesas consideration of an ecosystem altogether. Although thecorporate activity of TOPCON GROUP has no direct relationwith overhunting of animals and plants, introduction of analien species, etc., all the environmental problem has led todestruction of the habitation region of a living thing as shownin a figure.Having an international biodiversity year, TOPCON GROUP willtackle conservation of biodiversity, as an important activitynext to the prevention of global warming. Though there isnothing specific to concrete activities other than the continua-tion of its past activities, TOPCON GROUP will embed a biodi-versity consciousness into our environmental activities.

TOPCONGROUPTOPCONGROUP

Destruction ofhabitation region

Conservation ofhabitat region

Water

Materials

Electricity

Waste

CO2

Waste water

Exhaust gas

Deforestation

Desertization

Overdevelopment

Global warming

Air pollution

Water pollution

Soil pollution

Environmentally conscious products

Crisis of biodiversityDiversity of ecosystem

Diversity of speciesDiversity of genes

Factor of envir-onmental load

Environmen-tal Problems

Zero Emission Achievement by the TOPCON GROUP


2006 achievement 2007 achievement 2008 achievement 2009 achievement 2010 plan

Per unit of sales 1.070 1.035 1.298 1.040 1.018

Emission(t) 528 538 550 400 442


Per unit of sales 9.23 10.96 10.20 10.43 9.06

CO2 emission (t-CO2) 4,556 5,698 4,318 4,018 3,931


VOC emission (kg) 13,966 11,534 12,325 10,293 12,500

TOPCONCSR

ActivityReport

VOC includes both toxic and less-toxic VOC

Excepting trade-in articles


JapanTOPCON Products (Note)

North America China and OtherAsian Countries

EU

Environmental ProtectionUsing Period mark

Crossed out Dustbin markIV, V mark FCC mark CE mark KC mark

Appliance Efficiency Regulations (CEC)FCC Regulation

RoHS/ WEEE DirectiveErP DirectiveREACH Regulation

China RoHSKorean Product Safety (KC)

1010IV

GlossaryCollectively refers to a set of laws concerning electric safety (electricleakage), electromagnetic interference, energy efficiency, hazardous sub-stances contained in products, etc.An EU directive that restricts the use of hazardous materials (lead, mer-cury, cadmium, hexavalent chromium, and two brominated flame retar-dants) in the manufacture of electrical and electronic products The RoHSdirective took effect in July 2006. Use of the CE mark will be mandated.

An EU directive that mandates the recycling of electrical and electronicequipments, which are identified by a mark that looks like a crossed-outdust bin. The WEEE directive took effect in August 2005.

An EU directive that mandates eco-design such as energy efficiency. TheErP directive took effect in August 2005. ErP-compliant products areidentified by the CE mark.

An EU regulation on registration, evaluation, authorisation and restrictionof chemicals. The REACH regulation took effect in June 2007.

A mandatory conformity mark which certifies that a product meets EUdirectives concerning product safety. The CE mark now encompassesenvironmental requirements for a product.

Energy efficiently regulations for electrical and electronic products stipu-lated by the California Energy Commission. Conformant to Energy Starand identified by the IV or V mark affixed on an external power supply.

An energy efficiency standard for electrical and electronic products creat-ed by the US Environmental Protection Agency.

Regulations for wireless equipment created by the US Federal Communi-cations Commission (FCC) concerning use of electromagnetic energy,etc. Compliant products are identified by the FCC mark.

The Chinese version of RoHS directive Currently, items only have to bemarked as compliant. An Environment Protection Using Period markmust be affixed on products.

Regulations on electromagnetic interference of electrical and electronicequipment. Compliant products are identified by the KC mark.

Joint Article Management Promotion-consortium. JAMP is working out amechanism that facilitates disclosure/transfer of information on chemi-cals contained in products across the supply chain. JAMP is establishinga framework in Asia.

Format proposed by JAMP to describe substances contained in productsAIS

JAMP

Korean Product Safety

China RoHS

FCC regulations

Energy Star

CEC regulations

CE mark

REACH regulation

ErP directive

WEEE directive

RoHS directive

Product regulation

Compliance labels on a product

�Product environmental regulation(Energy efficiency, prohibition of hazardous chemical substances, etc.)� Regulations tightened internationally.

�Product safety and environmental regulations� Products must comply with all laws and regulations.

�CE Mark = Environmental requirements were added to the convention-al safety requirements.

Globalization of Product-related Regulations Abiding by Product Regulation Under Activity of In-House Committees and the Compliant Procurement System

�Compliant procurement (Hazardous chemical control regime across the supply chain)

�Assistance to overseas group companies regarding product regulations(Report of an environmental audit Topcon Positioning Systems, Inc., USA)

As part of our global efforts at environmental protection, TOPCON contin-ued to visit group companies in Japan and abroad to conduct environmen-tal audits on them.In particular, TOPCON kept communication with product managersresponsible for each product at Topcon Positioning Systems, Inc. (TPS)about the latest trend in product environmental legislation and its lawcompliance states because TPS develops GPS and machine control (MC)instruments and exports them to Europe independently.

Product Environmental Regulation Compliance Committee (Global activitiesconducted by the TOPCON GROUP to accommodate product regulation)1. Information gathering (2 items reported averagely per month.)2. Activities conducted to ensure compliance with laws and regulations

(RoHS-related efforts by group companies; information exchangeswith overseas group companies; investigation of REACH-compliantmaterials; RoHS audits on suppliers; self-checking by overseas sup-pliers; ErP-related efforts; X-ray fluorescence analysis)

3. Conducted internal audits regarding controls on chemical substancescontained in products (Checked if each business unit and procure-ment department are in full compliance with laws and regulations.)

4. Ensured that overseas group companies meet the requirements ofproduct legislation. (Visited them for audits.)

ECP Promotion Committee (Activities conducted forECP assessment)1. Increased ECP sales in value terms (Projected to reach 60% in

fiscal 2010.)2. Revised records on ECP assessment.3. Focused on improving energy efficiency.

＋

�Committee activitiesHolds a meeting once a month. The committee is aninterdisciplinary group with representation from variousdepartments. Average attendees: 15 people per month

�Established as specialized subcommittee as part ofthe TOPCON environmental protection organization

Administrative Departments

Procurement Department

Business Units (Engineering, Manufacturing, Marketing)

Administrative Departments

Procurement Department

Business Units (Engineering, Manufacturing, Marketing)

Product Environment Regulation Compliance

Committee

ECP*Promotion Committee

・・・・・・・・・・・・・・

・・・・・・・・・・・・・・

・・・・・・

Tier 3 suppliers (materials, surface treatment)

Tier 2 suppliers (manufacturers)

Tier 1 suppliers (trading firms)

End users

OEMs Agents and sales firms

TOPCON GROUP (assembly)

Tier 3 suppliers (materials, surface treatment)

Tier 2 suppliers (manufacturers)

Tier 1 suppliers (trading firms)

End users

OEMs Agents and sales firms

TOPCON GROUP (assembly)

* RoHS investigationPromotes RoHS compliance investi-gation, including products beyond the scope the RoHS directive.

* Investigates materials for prod-ucts by JAMP AIS format. (40 items investigated in fiscal 2009)

* Transfers information to end users. (to meet the requirement of Arti-cle 33 of the REACH regulation)(3 items applied in fiscal 2009)

* Replies from suppliers

* RoHS Compliance Declaration

* CE Mark Compliance Declaration


TOPCON's products, including those of the group companies in North America and China, are exported world-wide; so all our products are designed and manufactured in compliance with international regulations.

TOPCONCSR

ActivityReport

* ECP stands for environmentally conscious products. For details on our ECPs, please visit the TOPCON website.

http://global.topcon.com/csr/add_ecp.html (Environmentally Conscious Products (ECPs))

( RoHS directive, REACH regulation compliant )

Here introduces several CSR activities that the TOPCON GROUP carried out around the world.

CSR Activity Report Social Contribution

Assists in reducing environmental loadsSponsoring a seminar of a public school in the StateThueringen/Hessen for construction machine opera-tors, Topcon Deutschland G.m.b.H. in Germany sentinstructors and lent a machine control system (laser-equipped GPS measuring tool) free of charge.Prevalence of machine control systems will improvework productivity and reduce environmental loads dueto resource savings.

Assists employees in making social contributionsTopcon Positioning Systems, Inc., a US-based sub-sidiary, assists its employees in making social contribu-tions. It permits social activities during working hours.Brian Fisher, Territory Manager, participated in a schoolconstruction project in Kenya hosted by a Men On aMission (M.O.M.)organization.M.O.M. is a socialservice program tocontribute one'stime and work skillsas a volunteer tohelp improve thequality of life forpeople around theworld.

Provides free eye examsTopcon Medical Systems, Inc. (TMS), a US-based sub-sidiary, sponsored social services hosted by "OneSight"and "Friends for Life," renowned charity organizationsin the US. TMS sent staff and lent support through thedonation of eye equipment.

Donations for an earthquake reliefTopcon Optical (Dongguan) Technology Ltd., China,offered 30,000 yuan and raised 14,700 yuan from itsemployees in donations for victims of a big earth-quake that hit Qinghai, China.

TOPCON carried out various activities for local people, one of the important stakeholders.Here introduces some of them in brief.

Plant tour and work experience programs for college, high schooland junior high school students(TOPCON, TOPCON Yamagata, OPTNEXUS)

Let the local community use the company premises for an emer-gency drill, collection of waste items, etc.(TOPCON, TOPCON Yamagata, SOKKIA TOPCON)

Academic assistanceSOKKIA TOPCON lent facilities and equipment at itstraining center to assist university students with surveypracticesIn fiscal 2009, SOKKIA School supported more than 100students from three universities for a total of twoweeks.

For the smiles of children (an interviewwith an employee)I was asked to help with a Christmas party for localchildren for the first time in October 2006. At first, I wasnot sure if it would be a big gathering of children. Iprepared small presents for children and took part inthe party. And it turned out to be a big festive party withnearly 800 people. I gave a present to the children; so Italked face-to-face with them. I just remember their bigsmiles. Since 2006, I have taken part in the Christmasparty every year.More than 1,200people flockedto the party lastyear.I hope to contin-ue to join theparty to seechildren smiling.

(SOKKIA TOPCON)


TOPCONCSR

ActivityReport

I understandhow a compa-ny functions.

Thank you foryour coopera-tion in the emer-gency drill.

Ms. Nagai, TOPCON GS

OneSight MissionTMS partnered with Luxotticato provide free eye screen-ings and eyeglasses to hun-dreds of underprivileged chil-dren from the NYC area at asummer outreach camp.

"Friends for Life"TMS lent a wide range ofequipment to this event,which provided free eyeexaminations for childrenwith diabetes. TMS partneredwith Dr. Ben Szirth, PhD, whoconducted the screenings.

CSR Activity Report Responsibilities to Employees

Number of Employees Who Applied for Various Job Support Systems (TOPCON Headquarter only)Name of support system Period / Qualification Y2007 Y2008 Y2009

Childcare Leave Till the end of the month in which a child reaches the age of 2 6 10 15

Short-Time Work Till a child has finished the 3rd grade at elementary school 13 13 12

Nursing Leave 1 year 0 1 1

The strength of the TOPCON GROUP lies in the fact that it is a unique assemblage of people with differentvalues and individuality who are recognized regardless of gender, nationality and age. To leverage ourstrength, we value communications with our employees, respects their different values and individuality,and fosters a spirit of creativity and innovation so that they can manifest their true abilities.The TOPCON GROUP endeavors to share its fundamental principles with all employees, develop a corporateculture that encourages open discussions, and create a comfortable workplace in which human rights arerespected so that the TOPCON GROUP will be the companies that all employees can be proudly work at.

�Regulations for Power Harassment PreventionIn order to clarity the company's fundamental policyon power harassment, the TOPCON has drawn upregulations and published their aims in CSR INFO・LINK by way of declaration to the employees.The objective is to prevent power harassment thatinvolves any employee or other stakeholder and tocreate a comfortable workplace. The regulations stip-ulate consultation services, managers' responsibili-ties and so on.Although there is no legal definition of the term"power harassment," TOPCON's regulations define itas use of one's position to annoy subordinates byfrequently saying offensive things to them or threat-ening them in a way that infringes on or undermines

their human rights or human dignity and aggravatesworkplace atmosphere.Among things that are interpreted as power harass-ment include assigning work quotas that are objec-tively thought impossible to meet; giving instructionsto subordinates that are unnecessary for the perfor-mance of their duties; rebuking subordinates sharplybeyond the bounds of occupational duties; andreproaching subordinates for trivial mistakes persis-tently.Even if an instruction or guidance seems appropriate,it may be considered as power harassment, providedits wording is insulting or abusive or it is given in aninappropriate way or place.

�Working in Diverse WaysThe TOPCON GROUP has worked on establishing andmaintaining a personnel system that provides fairappreciation of and treatment to employees accord-ing to their abilities and performance, regardless oftheir age or gender.In the last few years, we have established variousemployment formats to support diversifying lifestylesof employees.In addition to a two-year childcare leave, we offerseveral leave systems to help employees to balancework and home life or find a better work-life balance:a short-time work system that is available until achild finishes the third grade at elementary school, achild nursing leave system and so on.Additionally, we also consider it important not only to

place the right people in the right jobs but alsorespect the eagerness and motivation of employeesin order to make the best use of their creativity andprofessional expertise. TOPCON has been striving tocreate a workplace that makes employees feel proudand motivated. To this end, we have set up a freeagent (FA) system, a job posting system, etc.To help people with disabilities manifest their abili-ties, we have defined work assignments according tothe degree of disability, made wheelchair-accessibleramps, paid attention to their means of commutationand so on. In fiscal 2009, 1.34% of the total work-force were people with disabilities (1.48% in fiscal2008).

Re-Employment System Those who have retired at the retirement age 22 15 18

�TOPCON Group's Human Resources Development PolicyIn order to clarify the basic policy on human resource development of the TOPCON GROUP, we drew up the"TOPCON Group's Human Resources Development Policy" in April 2010 with a view to sharing the samevalues with all employees. All human resource development programs will be conducted in accordance withthis policy.

1. The TOPCON Group provides opportunities forcapacity building and self-realization toemployees with various skills and charactertraits to help them exercise their qualities tothe fullest, placing human resources as themost valuable assets.

2. The TOPCON Group fosters professionals andglobal human resources* in a planned manner.

3. The TOPCON Group clearly defines desiredemployee characteristics (behavior traits andsense of values) and shares the recognitionwith all employees.

4. Each TOPCON Group company developshuman resource development systems andspecific plans suitable for its own businessmodel and scale in accordance with theHuman Resources Development Policy, andcommunicates them to all employees forimplementation.


Labor UnionName : TOPCON Labor UnionRepresentative : Executive Chairman, Akitomo Taza-

waEstablished : January 29, 1946Form : Independent in-house unionUnion member information

: (as of April 1, 2010)1. Number of union members: 869

(737 men and 132 women)2. Average age: 37.9 (Men: 38.3, Women: 35.0)3. Average length of service: 14.7 years

(Men: 15 years, Women: 12.8 years)Eligibility : Regular employees at or below the

deputy manager levelForm : Union shop (All employees must

join the union for an agreed period.)Officials : Executive chairman, deputy execu-

tive chairman, chief secretary, 4executive members, 2 accountingauditorsTenure: 1 year (not full-time)

Member organizations: All Japan Council of Optical Indus-try Workers' Union, Council of TOP-CON related worker's union (Bothare councils.)

Interview with the Labor Union ExecutiveChairman"Because the company performance was greatly affected infiscal 2009 by the so-called "once-in-century" economiccalamity, the union faced a difficult situation. The union offi-cials have worked for one year in order to maintain the livingstandards of union members and improve the working envi-ronment, even in this stagnant economy. Especially in fiscal2009, the union and the employers worked together to turnbusiness around quickly, ensure job security, and above all,improve the work-life balance. This fiscal year, we will con-tinue to make utmost efforts as the representation ofemployees, or stakeholders of the company, focusing on CSRactivities.

Executive officials of the union

*Global human resources:Those who are capable of direct communication with all stakeholders in carrying out their work, while sharing TOPCONGroup's management principles and accepting different cultures.

TOPCONCSR

ActivityReport

CSR Activity Report Responsibilities to Employees

�Measures for smokingTOPCON has taken tangible and intangible smokingmeasures.As far as tangible measures are concerned, TOPCONhas created a smoke-free environment by designat-ing smoking areas outdoors and on the roof andenforcing a total ban on indoor smoking from April2009 on. The group companies in Japan has takensimilar measures to protect nonsmokers from pas-sive smoking.When it comes to intangible measures, TOPCON hasconducted various anti-smoking campaigns, such ashanding out leaflets that describe the ill effects ofsmoking during physical check-ups; lecturing newemployees on the risk of smoking during trainingseminars; and holding smoking cessation classes forthose who want to quit smoking but still have theinclination to smoke.

The percentage of smokers at TOPCON is on thedecline. We will step up our efforts to achieve thesmoking rate goal till fiscal2011.

�Health Care�TOPCON holds a number of programs designed to

improve and safeguard the health of employees sothat they can go about their work cheerfully andefficiently and bring out their potential abilities.TOPCON is concentrating on health education pro-grams, which are held after regular physicalcheck-ups. For example, those who have a serioushealth risk may be removed from heavy-duty jobs,have their working hours limited or encouraged totake advice from industrial physicians or healthnurses according to their conditions. Informationabout the physical conditions of employees ismanaged in a centralized fashion and utilized togive them appropriate advice. Moreover, we havetalked with the cafeteria companies to offer well-balanced healthy meals at worksite cafeterias,placed blood pressure gauges where anyone canuse them, and held stretching and taping seminarsled by sports club members. All these activitieswere intended to heighten awareness abouthealth.

�When it comes to mental health care, TOPCONfocuses on two things to prevent its employeesfrom developing mental health issues: 1) seminarsto teach managers how to take notice of their sub-ordinates showing mental symptoms, and the cor-porate obligations to ensure workplace safety; 2)seminars for new employees to teach them whenand how to take advice.TOPCON helps employees on mental leave returnto work smoothly in consultation with their familiesand doctors as well as their superiors and the per-sonnel affairs manager.

�As part of our efforts to create a positive atmos-phere at the workplace, TOPCON has opened acheap pub at the cafeteria on Fridays after workinghours. Lots of people inside and outside the com-pany come to the pub to talk and feel refreshed.

�Description of the Safety/Health DatabaseTOPCON has created the Safety/Health Database thatis accessible via the in-house network. The databaseprovides information about our safety and healthactivities, which can be viewed by all employees inheadquarter as well as group companies in Japan.To realize a safe and comfortable workplace andmaintain and improve physical and mental health, it isimportant for all people to be conscious of safety and

health. Therefore, the database not only provides theminutes of committee meetings that are required bylaws to be available to all employees, but also offersour policy and plans for safety and health activitiesand general accident episodes. We try to update thedatabase in a timely fashion to keep information up-to-date.

Stretching and taping seminar

Pub/Attracts as many as 100 people in busiest time

0

10

20

30

40

50(%)

FY2008 FY2009

(man)

(woman)

Overall smoking rate　FY2008 37%　FY2009 32%

36%

11%

40%

18%(FY2009)

�Measures toward occupational accidentThe TOPCON GROUP Safety and Health Policy states that itstrives to eliminate occupational accidents and injuries andminimize potential risks. In fiscal 2009, we have modifiedthe format of the Accident Report Form so that we canensure thorough investigation and take corrective action toprevent similar accidents. Additionally, we have set up asafety/health database, and accident reports will be dis-closed in it, in the event of an accident so that all employ-ees can share the information about how it occurred andhow a recurrence can be prevented.The Safety and Health Committee and industrial physicianspatrol workplaces to identify potential safety risks early andmake them remedy the situations.

In fiscal 2009, one accident occurred that did not lead toabsence. (*)The man who met the accident suffered a third-degree burnfrom an overflowing hot-melt adhesive while he was doingan adhesive application work using a hot-melt dispenser. Infiscal 2008, there was an accident that led to absence inwhich an employee tripped on a difference in level on thefloor. Although there was no such accident in fiscal 2009,we will continue to eliminate differences in floor heights.The following table shows the continuous accident-freehours, severity rate, frequency rate per working hours, etcin fiscal 2009.* Statistics of the TOPCON headquarters only


Smoking area on the roof

Continuous accident-free hours

TOPCON

Total 3,020 thousandhours

Average of the Manufacturing IndustryFY2008/ More than 1,000 employee

－

Average of All IndustriesFY2008/ More than 1,000 employee

－

Safety/HealthDatabase

1. TOPCON GROUP policy and guidelines1) TOPCON GROUP Safety and Health Policy2) Other guidelines

4. Accident prevention activities1) Near-accidents 2) Accident-free hours3) Occupational accident episodes

5. Health care and health promotion1) Mental health 2) Health promotion

6. Laws and regulations related to safety andhealth1) In-house regulations2) Related laws3) News and topics on safety and health

7. Announcements from industrial physicians

2. Policy and plans for safety and health activities1) Policy for safety and health activities2) Annual plans for safety and health activities

3. Information from the Central Safety and HealthCommittee to all employees1) Minutes (Required by the Industrial Safety and

Health Act of Japan to be made available to allemployees)

2) In-house safety and health events3) Educational materials on safety and health

TOPCONCSR

ActivityReport

Consecutive hours free of accidents resultingin fatalities or absences of 1 day or longer

Severity rate(Absence of 1 day or longer)

0.00% 0.01% 0.01%Percentage of serious accidents

Frequency rate per working hours(Absence of 1 day or longer) 0.00% 0.26% 0.55%Number of dead and injured per million work-

ing hours

Frequency rate per 1,000 workers(Absence of 4 day or longer) 0.00% 3.00% 2.30%Number of dead and injured per 1,000 work-

ers per annum

TOPCONThird-Party

Opinion

Third-Party OpinionCSR Activity Report Responsibilities to Customers and Suppliers

At TOPCON, every November is Qual-ity Month. It is a good opportunity toraise the "Quality First" awareness,and a number of programs are

planned with a view to furtherenhancing our product quality.

In fiscal 2009, we held several new events under thetheme "Quest for Fundamental Quality―What's YourDefinition of Quality?" such as a quality forum forengineering departments, a poster exhibition showingbenchmarks of quality improvements made byadvanced enterprises, and an expert lecture.

［Quality Forum］The first session was an open discussion focused onimproving design quality. The participants discussedquality issues facing the Positioning, Eye Care andFinetech Business Units and possible solutions.The second session focused on quality engineering andconsisted of a seminar and a discussion of its in-houseapplications.Both sessions were led mainly by managers in charge ofproduct develop-ment in each busi-ness unit andturned out to bevaluable discus-sions.

［Poster Exhibition］In addition to examples ofquality improvementachieved by the threebusiness units and thecomponent manufacturingdepartment, postersshowed the qualityimprovement techniquesused by electronics manu-facturers, automakers andso on and the benchmarksof their quality activities.

［Expert Lecture］An outside expert wasinvited to hold a lectureentit led "Front-EndQuality Control" inorder to raise qualityawareness among theofficers in charge of themanagement of thecompany and eachbusiness unit, as wellas employees in the managerial positions. The objectivewas to inspire positive actions for quality.

We will continually take measures to improve productquality and thus customer satisfaction.

The TOPCON GROUP maintains a com-prehensive and objective assessment ofand procedure for selection of suppliers,considering quality, pricing, delivery relia-

bility, technical levels, management stabili-ty, environmental soundness and so on.

When it comes to international procurement, Chi-nese suppliers have recently increased presence as theirinternational competitiveness has increased. However, beingoverseas suppliers, they did not have a high degree of recog-

nition or visibil-ity within TOP-CON.To address thisissue, we helda joint Chinesesupplier exhi-bition for thefirst time to

promote procurement of Chinese parts and materials. Theexhibition hall was divided into three zones: machine tooling,electric assembly and optical forming. People from 22 com-panies offered explanations; and exhibit panels providedinformation about each exhibitor (location, number ofemployees, production capacity, etc.) and its selling points.Items employed in TOPCON's products and their actual appli-cations were also introduced. Nearly 300 people, especiallydesigners and engineers, of TOPCON visited the exhibition.We heard lots of positive remarks from both visitors andexhibitors like "It was nice to know Chinese suppliers well.The exhibition was productive." from visitors and "I was ableto create relationships that would lead to business with TOP-CON." from suppliers.We are arranging for the date and program of the next exhi-bition as we received requests from most of the visitors andexhibitors for the next exhibition.

Generally, Corporate Social Responsibility (CSR) reports are eval-uated, based on how well they cover the range of entities thatshould be included in the report. At the same time, I think it isimportant to determine whether a CSR report has beenimproved year by year to meet the needs of society. It is neces-sary, however, to keep perusing CSR reports from the sameorganization for several years to be able to make such an deci-sion. In practice, this viewpoint is not considered as part of thecriteria for commendations of CSR reports.Fortunately, I've read and appraised your CSR reports since2007 and talked with your representatives every year; so I knowyour CSR reports have become better and better. In the mean-while, you have made great efforts to improve your CSR reportand reflected our dialogues to your editorial policy. I highlyappreciate gradual improvements you have made in both reportcontent and quality. The 2010 report is no exception.Above all, the good points about the 2010 CSR report include: 1)using a website in tandem with the print version of the CSRreport; 2) descriptions taking social issues into consideration;and 3) a comment of the chairman of the your CSR committee.Regarding point 1, the descriptions of corporate policies, guide-lines and schemes took up much space previously. To devotelimited space to activity reports, these topics have been movedto the website. The cornerstone of the CSR report should bedescriptions of CSR activities that an organization has carriedout over the report period; thus I think use of the website was awise decision. The 2010 CSR report still does have some thingsleft to be desired. I'd like to recommend that the principle of theplan-do-check-act (PDCA) cycle be applied to the next CSRreport to describe the results of activities; issues that haveemerged; and action plans for the next year to solve theseissues.

Point 2 is a significant viewpoint today as corporate socialresponsibility is being redefined as a commitment to addressingsocial issues through core businesses. This is reflected to theSpecial Feature and the explanation of your three business unitsin a manner that does not smack of advertisement and befits aCSR report.Point 3 is an obvious expectation, but in reality, not many CSRreports contain a comment of the CSR committee representa-tive. I found the comment on page 8 of much use to understandthe whole CSR report. My suggestion here is to focus on a sum-mation of your activities, however.There are many other points that require improvements. Thefirst and foremost is a description that is appropriate to a globalcompany whose overseas sales account for 73% and overseasemployees make up 53% of the total workforce. Although, from2009 on, your CSR report has contained information related tooverseas CSR activities such as CSR pervasiveness, use ofchemical substances, compliance with product legislation andthe human resource development policy, I am of the opinion thatits coverage is not still sufficient.To elevate your CSR report to a new level, it is essential toestablish a system for collecting global information and set bothdomestic and international goals. I suggest considering the envi-ronment, labor accidents and personnel issues at first. Also,issues concerning working environments and conditions areemerging at overseas factories. To avoid or resolve such issues,Japanese companies, one after another, have been investigatingthe working environments at their overseas facilities. I have sofar seen descriptions of such investigations in CSR reports fromsports equipment and game console manufacturers, but I'd liketo note that other business organizations will be expected toaddress such issues in the future.

Tamio Yamaguchi, RepresentativeSpecified non-profit organization

Junkan Workers Club

In Response to the Third-Party OpinionOn the TOPCON GROUP CSR report, Mr. Yamaguchi madean essential comments and suggestions each time fromthe viewpoint of a third party.The third-party opinion is like a report card with an accountof how well or badly we have engaged in stakeholder dia-logues and helps us review our performance of CSR man-agement. Fortunately, the comments of Mr. Yamaguchiwere much the same as my recognition of the issues TOP-

CON is facing. I interpret his comments as milestonesalong a road that will lead to an elevated level of CSR man-agement. I will take them as an encouragement for us toproceed with confidence.

TOPCON CSR CommitteeHiromasa Miyawaki, Chairman

Junkan Workers Club:This is a civic group whose main purpose is to (1) discuss from a globalpoint of view, the ideal figure of a circulation-based society, which is tohave harmony with the natural ecosystem that should be handed down toour next generations, and (2) research, support, and implement anyefforts to form a circulation-based society by local citizens, businesses,and public administrations.

URL: http://www.nord-ise.com/junkan/

JointExhibition by

ChineseSuppliers

QualityImprovement

Programs


http://www.topcon.co.jp/en/corporate/quality.html(Quality Assurance Activities)

http://www.topcon.co.jp/en/material/index.html(International Procurement)

TOPCON GROUP CSR Report · In light of this, the TOPCON GROUP has formulated a basic CSR policy...

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