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enquete(Corporate Ethics)

Shiseido's corporate ethics

Shiseido's corporate ethics activities aim to establish the company as a distinctive presence, one that is of use to and needed by people worldwide, through strict compliance with laws and regulations and by raising the value of Shiseido Group brands.

CSR Activities Based on THE SHISEIDO CODE:

THE SHISEIDO CODE is a set of specific corporate ethics and behavior standards that every employee should follow for realizing the Corporate Mission and THE SHISEIDO WAY (Corporate Behavior Declaration) and forms the basis of Shiseido's CSR activities. It provides behavioral guidelines aimed at forging a strong relationship of trust between stakeholders and the company. The content of THE SHISEIDO CODE is disclosed to the public via the corporate website(Japanese only).

The Position of THE SHISEIDO CODE

The Position of THE SHISEIDO CODE
photoTHE SHISEIDO CODE
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Corporate Ethics Activities Follow a PDCA Cycle

The Compliance Committee (established in 1997 as the Corporate Ethics Committee) plays the central role in promoting Shiseido's corporate ethics activities, and is appointed by Code Leaders at each domestic site and by Business Ethics Officers (BEOs) at overseas sites to facilitate the implementation of THE SHISEIDO CODE.

Corporate Ethics Activities Follow a PDCA Cycle
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Code Leader Activities

Shiseido has placed about 500 Code Leaders in positions in all domestic divisions and worksites. Selected according to individual worksite characteristics regardless of position, gender, and age, these individuals create action plans for their worksites and conduct educational and training activities following the PDCA (Plan, Do, Check, Act) Cycle. The Company seeks to share information and utilize it in the formulation of action plans for the upcoming year by introducing examples of successful activities and annual reports on each worksite's initiatives in the Code Letter magazine and the Shiseido Corporate Ethics White Paper. The Company hosts informal gatherings where Compliance Committee members can meet with Code Leaders from around Japan as well as Code Leader Discussions where managers and Code Leaders from individual worksites can meet to improve communication, identify workplace issues, and help create a better workplace.
Code Leader activities in the fiscal year ended March 2009 revolved around the theme of "creating a company culture conducive to good internal communications."
Activities in the fiscal year ended March 2010 revolved around improving the workplace environment based on the theme of "development of capable personnel and an appealing workplace."
Activities for the fiscal year 2010 are currently underway in all domestic business locations under this year's theme that continues to focus on the "development of capable personnel and an appealing workplace."

photoA Code Leader Discussion
(held in February 2010)
photoCompany poster introducing Code Leaders

voice

Promoting Reforms Unconstrained by Common Practices with the Aim of Realizing the Ideal Workplace

Osaka Factory

Code Leaders

photoParticipation in Code Leader Meeting by General Manger, Administration Manager, Code Leaders and Sub Code Leaders of Osaka Factory (January 2010)

Various reforms are being promoted at the Osaka Factory. In addition to a shift toward working in a standing position for production activities (moving away from working in a sitting position) while firmly establishing 2S activities directed toward thoroughly eliminating all forms of waste, the working environment at the factory is undergoing a major transformation via breakthrough reforms that are unconstrained by common practices.

As a means of resolving various issues related to these changes, various activities are being developed centered on Code Leaders and Sub Code Leaders with the aim of developing capable personnel and an appealing workplace by gathering a broad range of opinions.

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Human Rights Awareness and Corporate Ethics Training

To ensure that THE SHISEIDO CODE is followed at all levels of the organization, Shiseido requires all employees and directors to undergo human rights awareness and corporate ethics training at least once each year.

(1) Training for new Code Leaders (once a year)
These overnight group training sessions combine lectures by Company and outside instructors with participatory programs and are held to help trainees master the corporate ethics knowledge they will need as Code Leaders.
(2) Position-specific training (once a year)
During fiscal year ended March 2010, President & CEO Mizue Tsukushi of Good Bankers Co., Ltd. lectured directors, general managers of Head Office departments and presidents of affiliated companies about how CSR activities enhance corporate value from the perspective of SRI investors.
Also, training was conducted aimed at reinforcing among managers of overseas worksites the importance of CSR and environmental initatives, which are designated as Shiseido's core management initiatives, as well as promotion of a hotline system. In other areas, joint training was conducted according to respective goals.
(3) Workplace-specific training for all employees (once a year)
In the fiscal year ended March 2010, training was conducted for the Head Office and business locations nationwide based on the theme of "considering the thoughts of colleagues - creating a workplace where there is no harassment." This training included DVD viewing and group research to nurture an awareness of human rights and ethics among participants.
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Compliance with Japan's Whistleblower Protection
Act and Corporate Ethics Help Line

In order to comply with the Whistleblower Protection Act passed in April 2006 and ensure that any illegal acts in the Company are resolved internally before they become serious, the Company is providing training for people in charge and distributing pamphlets to all employees as part of an effort to promote widespread knowledge of two entities for reporting (counseling) ethics concerns: the in-house Shiseido Consultation Office and the Shiseido External Consultation Office, which is located at a law firm. The Company also has created and publicized to employees a set of Shiseido Group Consultation Office Regulations setting forth an impartial means of investigating and resolving complaints and clearly prohibiting prejudicial treatment of whistleblowers (as well as individuals seeking advice).
The Shiseido Consultation Office welcomes individuals seeking advice on a wide range of topics, relating not only to THE SHISEIDO CODE but also to the Company's business and operations in general. The Office has worked to quickly resolve 223 inquiries in the year ended March 2010, bringing the total since April 2000 to 1,355. The Company also has distributed an Ethics Card to all employees, including employees dispatched from employment agencies.

The Ethics Card features various information including contacts for the aforementioned work-related consultation inside and outside the Company, as well as Mental Health Consultation (internal) and Shiseido Health Support Dial 24 (external) for advice related to mental and physical matters.

photoInternal pamphlet
about the Shiseido Consultation Office
photoEthics Card
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Identifying Issues and Taking Steps to Implement Improvements

Shiseido has conducted an annual Employee Awareness Survey since 1998 in which participants are asked to respond to questions designed to gauge their attitudes toward their jobs and the Company, as well as the extent to which THE SHISEIDO CODE is followed. Results of the survey are applied to the Company's activities.
The survey covers all employees, including temporary contract employees and employees dispatched from employment agencies, to reflect increasing diversity in the Company’s employment pattern.
Improvements in identified issues will be implemented through training or Code Leader activities, thereby promoting the development of capable personnel and an appealing workplace.

Issues and improvement measures in the fiscal year ended March 2010

Adherence to THE SHISEIDO CODE
While the level of understanding and practices improve every year, violations also occur. Therefore, efforts are under way to enable respective individuals to deepen their understanding by reading THE SHISEIDO CODE together with Code Leaders at their respective workplaces.

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Reviewing Internal Rules Governing Gift Exchanges and Business Entertainment

photoCompany poster informing employees
about the review of gift exchange
and business entertainment policy

In order to promote fair and transparent transactions with business partners such as suppliers and customers, THE SHISEIDO CODE allows gift exchange and business entertainment practices as required, so long as they fall within socially appropriate bounds. This approach was further clarified with the adoption in 1998 of a set of operational standards for individual departments and affiliates in the form of the "Internal Regulations for Gift Exchanges and Business Entertainment." The Company has since worked to implement those rules.
Responding to increased social awareness of the need for fair and transparent transactions in recent years, the Gift Exchange and Business Entertainment Subcommittee of the Compliance Committee capped a lenghty investigation into the matter by reviewing the Company's regulations by confirming their continued suitability and has further undertaken measures in the fiscal year ended in March 2008 to strengthen its associated management structures. In addition to introducing new rules in the form of Gift Exchange Expenditure Authority Guidelines and a reporting requirement for employees receiving gifts or being treated to business entertainment, the subcommittee reviewed department- and affiliate-specific Gift Exchange and Business Entertainment Guidelines.

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Risk management at Shiseido

The basic policy of Shiseido risk management is to enhance the Company's brand value by ensuring stakeholders' trust through various initiatives. These include social contributions in the event of disasters while placing the highest priority on ensuring the safety of employees and their families (respect for human life) as well as preserving corporate assets and sustaining operations. In addition to minimizing the effects of manifest risk, Shiseido believes that eliminating social loss to the best of its ability and acting responsibly to contribute to society will enable it to fullfill its social responsibility and ultimately enhance its corporate value.

Shiseido established the Compliance Committee to undertake company-wide management of all risks and compliance related to corporate activities, thereby promoting various measures to prevent risks from occurring. Additionally, the Company adopted a system whereby manifest risks are addressed by organizations at various levels including countermeasure headquarters, countermeasure projects and countermeasure teams.

In addition to responding to risks that have occurred, the Company also creates risk maps for visualizing potential risks from the standpoint of prevention. We identify corporate risks from eight domains including corporate governance, human rights and labor practices, and map these risks using the two axes of "significant effects on corporate management" and "degree of social attention." While checking in detail as to whether or not a measure has been taken for each risk map, the departments in charge will create action plans for unaddressed risks and those that need to keep being addressed, thereby ensuring that the PDCA cycle is in place.

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Business Continuity Plan and Employee Earthquake Manual detailing action to be taken in the event of a major earthquake or the outbreak of a virus.
Employees action guidelines for New Strains
of Influenza Countermeasures

Shiseido has established a Business Continuity Plan (BCP) spelling out how important operations would be restored and carried on in the event of disasters including major earthquakes and new strains of influenza, in a manner that would allow the Company to minimize damage and resume operations at the earliest possible opportunity.
With regard to new strains of influenza causing human suffering, the Company has established responses by level, including temporary business suspension, to address various conditions from strong toxicity to weak toxicity. The Company also formulated the Employee Action Guidelines for New Strains of Influenza Countermeasures, which compiles standards of action for operations by level, and introduced them on the Intranet in order to raise employee awareness and enable employees to respond calmly under such circumstances. Additionally, the Company published a booklet to heighten employee awareness about earthquakes and new strains of influenza, which are disasters that have a high possibility of occurring. The Company distributed to all employees an earthquake safety action manual detailing actions to be taken when earthquakes occur, disaster prevention measures and the experience of the Great-Hanshin Awaji Earthquake disaster. In response to new strains of influenza, the New Strains of Influenza Countermeasures Manual was created and distributed to all employees to inform them of basic knowledge, prevention methods and what to do when symptoms appear.

New Strains of Influenza
Countermeasure Manual (Front cover)
New Strains of Influenza Countermeasure Manual (Contents)
photoEarthquake safety action manual

TOPICS

Shiseido Wins the 2009 Integrity Award Grand Prize and Delivers Integrity Award Grand Prize Recipient Address

On March 17, 2009, Shiseido received the 2009 Integrity Award Grand Prize from the Integrity Award Council. The award recognizes companies with exceptional internal control and compliance systems that pursue advanced initiatives.
Shiseido was selected by the Council from 13 candidates for the award, from a shortlist of companies that were initially selected from the 744 corporations that responded to the 8th IntegreX Survey on Company Integrity and Transparency (Morality and Social Responsibility). The survey was sent out during the second half of 2008 to each of Japan's 3,891 publicly held companies. In selecting Shiseido to receive this award, the Council pointed to the explicit commitment to social responsibility on the part of the Company's management, and efforts to clearly state its stance on related issues to stakeholders by articulating and making publicly available its corporate mission, THE SHISEIDO WAY (a corporate behavior declaration), and THE SHISEIDO CODE (corporate ethics and code of conduct standards).
After the award ceremony, President Maeda delivered an address entitled "Corporate Ethical Compliance at Shiseido" from the company's perspective as a winner of the Integrity Award Grand Prize. The audience of nearly 170 attendees included organizational sponsors and representatives responsible for internal control systems in their companies.

A summary of Address by Shinzo Maeda, President & CEO, Shiseido Company, Limited, follows:
I am grateful for the privilege of receiving this award and sobered by the honor. In order to fulfill its corporate mission of "We seek to identify new, richer sources of value and using them to create a beautiful lifestyle," Shiseido maintains mechanisms for pursuing its operations based on The Shiseido Way, a declaration of behavior that we have made to all stakeholders, and The Shiseido Code, a corporate ethics code of conduct that all employees must observe. We have also placed Code Leaders in all domestic workplaces, where they lead efforts to ensure that our operations are rooted in ethical compliance. Other means by which we strive for transparency in the area of corporate ethics include an employee satisfaction survey for all employees once a year; multiple reporting and counseling entities, including outside attorneys, geared to facilitate the early discovery and resolution of ethical irregularities; and efforts to ensure transparency and diversity in our management.
However, we believe that more important than creating mechanisms such as these is our employees' desire to do what is right for the company and their pride as Shiseido employees. For more than 30 years, Shiseido has offered Beauty Seminars at facilities for senior citizens and individuals with disabilities as a way of practicing its corporate message of "This moment. This life. Beautifully." I've been participating in that program myself since last year, and starting in April, all employees will participate. We believe these activities help spread an awareness of our mission and engender a sense of ethics by giving employees a chance to experience the deeply revitalizing effect that cosmetics can have on people's emotional well-being, share an understanding of Shiseido's social significance, and gain new motivation for their work. Going forward, we are committed to living up to this award by continuing to fulfill our social responsibilities.

Council chairman Eisuke Nagatomo (left)
and Shiseido President Maeda Shinzo (right)
at the award ceremony
Giving the Integrity Award
Grand Prize Recipient Address
"Corporate Ethical Compliance at Shiseido"
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