CASIO CSR Communication Book 2015...CSR Implementation Framework As an enterprise with a worldwide reach, Casio has endorsed and is guided by the universal principles of the UN Global

CSRCommunication Book 2015Welcoming the Challenge of Helping to Build a Sustainable Global Society

Casio’s corporate creed of “Creativity and Contribution” is a concept that originated with the company’s founders. It expresses the aspiration to contribute to society by enriching the lives of people through product creation that goes from “0” to “1,” or makes something from nothing. As Casio advances into a new era under the next generation of leadership, it remains committed to this creed. Kazuhiro Kashio was appointed president in June 2015. In the Message from the President, he conveys the importance of realizing “Creativity and Contribution” in Casio’s management strategy. Meanwhile, Casio is determined to properly understand the needs of society when considering its future management strategy. The dialogue section at the end of the Communication Book features an exchange of opinions Casio held for this purpose with an outside expert.

As a continuing feature from last year, this year’s edition has special articles based on the Charter of Creativity for Casio. Chapter 1 features a Casio founder looking back on the starting point of creating a universal need. Chapter 2 describes Casio’s strenuous effort to provide customers with delight, happiness, and pleasure, while Chapter 3 focuses on the work of top Casio sales people as professionals. Accordingly, the Charter of Creativity is explored from each of these different angles.

As a leading environmental company, Casio has undertaken a range of challenges over the past year. The results of these environmental initiatives are also reported here.

For more detailed and comprehensive information, visit the Casio Sustainability website, which is based on the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines.

This book is designed to communicate Casio’s heritage and present determination — to keep making something from nothing, to keep going from “0” to “1.”

Contents

Welcoming the Challenge of Helping to Build a Sustainable Global Society 03

Message from the President 04

The Charter of Creativity: First Chapter 06The Charter of Creativity: Second Chapter 10The Charter of Creativity: Third Chapter 14

Basic Environmental Policies 18

Casio Environmental Vision 2050 19Casio Environmental Declaration 2020 19Environmental Highlights 19

Casio Welcomes Environmental Challenges 20

Where Should Casio Focus Its CSR Efforts to Help Build a Sustainable Global Society? 22

Corporate Overview 24

Casio’s creative process involves repeated

sparks of inspiration and the assembly of

many different intellectual components. While

working to bring together ideas, knowledge,

and individuality like the scattered pieces of

a puzzle, suddenly new value emerges, and

the leap is made from “0” to “1”.

http://world.casio.com/csr/

CASIO CSR Communication Book 201502

Casio’s Business Activities

Casio Group Code of Conduct

Charter of Creativity for Casio and Casio Common Commitment

Corporate Creed“Creativity and Contribution”

Localcommunities Customers

Globalenvironment

Shareholdersand investors

Providing new value through productsSocial and environmental initiatives

Employees Suppliers

Sustainableglobal society

Welcoming the Challenge of Helping to Build a Sustainable Global Society

CSR Implementation FrameworkAs an enterprise with a worldwide reach, Casio has

endorsed and is guided by the universal principles of

the UN Global Compact. Using the ISO 26000 interna-

tional guidance standard on social responsibility, Casio

analyzes its current progress and establishes action

plans for improvement. The company also discloses its

CSR performance in accordance with GRI Sustainability

Reporting Guidelines.

In fiscal 2016, Casio is working to specify

important CSR issues that it needs to work on (issues

with materiality), according to the G4 Sustainability

Reporting Guidelines issued by GRI in 2013. The

company plans to disclose its material issues in the

Sustainability Report to be issued in 2016. (Please visit

the Casio website for more details.)

http://world.casio.com/csr/principle/

Casio’s corporate creed of “Creativity and Contribution” expresses the company founders’ aspiration to contribute to society by creating innovative products that have never existed before. Casio works hard to ensure that all of its employees fully appreciate the meaning of this corporate creed. Casio people are the key to contributing to the development of a sustainable global society. Casio’s clear stance on CSR and its inspired employees, together, ensure that the company’s business continually makes something from nothing, by going from “0” to “1.”

DisclosureGuidelines that indicate

a framework for sustainability reports

ImplementationInternational guidance

standard on social responsibility

PrinciplesUniversal principles

that Casio respects as a global corporation

GRIGuidelines

ISO26000

UN Global Compact

Resource recyclabilitySocial and economic activities on a planet with

limited resources

Fairness across generationsThe current generation properly appreciating the

legacy of previous generations and passing it on to

future generations

BiodiversityRespecting the uniqueness of all living organisms

and recognizing their interdependence

Fairness across regions

Fairly distributing wealth and assets across regions

Keywords for a sustainable global societyCasio uses four specific keywords, shown below, to

focus its efforts to address social and environmental

issues that relate directly and indirectly to its business

operations. By addressing these issues, Casio aims

to enhance the sustainability not only of its business,

but also of all of the societies around the world where

people enjoy Casio products.

CASIO CSR Communication Book 2015 03

Creating New Markets from a Customer-Driven Perspective: Leveraging Casio’s Originality to Contribute to Society

Message from the President

In recent years, the business environment has been changing dramatically. In order to continue growing as a company essential to society, we must accurately read the signs of the times, so that we can undergo the necessary selftransformation. Amid these farreaching changes, my appointment as president in June 2015 has made me realize the sobering responsibility of leading an entire group of companies.

Since first joining Casio, I have always felt that our corporate creed of “Creativity and Contribution” is paramount. The significance of “creativity” is profound, and the word indicates so much more than developing innovative products. It also means enriching the lives of people with

The Casio brand represents our promise to customers

those products, all the while inspiring new cultural phenomena and pioneering new markets. That is the kind of “contribution” that only Casio can make. This is why today it is so important for us to renew and deepen our awareness of “Creativity and Contribution,” take a thoroughly customeroriented perspective and stretch our imagination into the future. We need to earnestly consider the best ways to help people live enjoyable and convenient lives.

Our brand is a bond that connects Casio to its customers through products and services, and is in fact a promise we make to our customers. Once they buy a Casio product and become a Casio fan, customers put their trust in our brand, which leads to a cycle of future purchases. Therefore, our brand is the most essential channel for communication for a company like Casio in the consumer products business.

The education market is one area where Casio has left a significant footprint by securing strong customer support based on our brand. This product area includes electronic dictionaries and scientific calculators.

By listening to feedback from classrooms and making repeated improvements, we have developed important assets — rich dictionary content and a network of teachers. Currently, many high school students purchase Casio electronic dictionaries to help them achieve their goal of passing university entrance exams every year.

Meanwhile, in the area of scientific calculators, mainly in Europe and the United States, the market development team began by visiting classes in various countries

Kazuhiro KashioPresident and CEO

Earning a strong position in the education market


Message from the PresidentCreating New Markets from a CustomerDriven Perspective: Leveraging Casio’s Originality to Contribute to Society

Message from the President

and strengthening relationships with schools, and then proceeded with product development to better meet classroom needs. We have even supported legislation to facilitate better mathematics education. As a result, many high school students in the countries and states concerned have purchased Casio scientific calculators.

As a result of striving steadily to achieve our mission of supporting classroom education, we have been able to create innovative products and services in the field of education. In response to expanding educational needs in newly emerging countries and elsewhere, we will continue our unique business development based on our roadmap for contributing to education worldwide.

In education and other existing markets, we must continue to firmly protect the Casio brand, which is our promise to customers. While maintaining our culture developed over many years and launching new products that meet not only today’s needs but the needs of the future, we will continue to provide unwavering value. It is also important for us to pioneer new markets and create new Casio fans, by taking on the challenge of creating new categories of “things.”

A medium and longterm view is extremely important when pursuing this kind of market strategy. Rather than

sticking to shortterm sales and profit, Casio needs to look ahead 5, 10, and 20 years and create a broad vision for the future. We must also consider what to focus on in the form of a series of corporate stories for these time frames.

In June 2015, a new Corporate Governance Code was adopted in Japan, and there has been growing momentum across the entire society to measure corporate value over the medium and long term. As a listed company, Casio is expected to declare and deliver on longterm goals, i.e., its methods for contributing to the sustainable development of society. Rather than just responding in a superficial way, at Casio we intend to use this opportunity to reconsider the very essence of our company.

Given this situation, I hope our employees will broaden their perspectives. Rather than the optimization of individual departments, each and every Casio employee must be aware of companywide optimization goals in order for Casio to undergo the transformation needed. To reflect companywide strategy in individual businesses, I intend to provide team leadership from the top. However, individual departments — especially their leaders — must each also think earnestly about the future, and based on their

unique perspectives, actively express their ideas on how things should change.

Finally, as a manufacturer, technological capabilities form the foundation of everything Casio does. While remembering this starting point, we should work to create an environment that allows the engineers of the Hamura and Hachioji R&D Centers, which form the heart of Casio, to fully realize their abilities. Furthermore, without the enthusiasm of Casio employees, the company has no future. That’s why we are working so hard to build a company where enthusiastic people can play a dynamic role. The entire company is united in the ambition to take “Creativity and Contribution” to an even higher level to achieve sustainable development together with society.

Deploying market strategy based on a long-term vision

Getting back to basics and taking “Creativity and Contribution” to an even higher level


Casio has continued to provide new value to society

by anticipating the needs of each era and pursuing

advanced, original craftsmanship. Special Adviser

Yukio Kashio, one of the founders of the company,

shares his thoughts on the creativity that Casio has

nurtured over many decades.

Relay calculator 14-A, launched in 1957, and its blueprint

We will value creativity, and ensure that our products meet universal needs.

The Charter of Creativity: First Chapter


The spirit of “Creativity and Contribution” that supported the dawn of Casio’s growth

From the relay calculator to a new challenge: the electronic calculator

The history of Casio’s product creation began in

1946 right after World War II with the opening

of Kashio Seisakujo in Mitaka, Tokyo, by Tadao

Kashio, my eldest brother. I and my two other

brothers had great respect for Tadao and we

wanted to help him with his business. That’s

how we all began working on the development

of a calculator, as an original product.

At that time, mechanical calculators were

the norm. They operated using gears, took a

lot of time to perform calculations, and had

limited functions. My three brothers and I

stuck with our challenge. We moved along

as fast as we could, focusing on generating

ideas during the day and trying them out

practically in the evening. Then in 1957,

after this process of trial and error, we came

out with the 14-A. Using circuitry based on

bi-quinary coded decimal, a numeral encoding

scheme used for the Japanese abacus, we

succeeded in significantly reducing the number

of relays required, compared to other relay

calculators at that time. This helped to reduce

the calculator to a desk size and produced the

world’s first all-electric compact calculator.

Looking back on my 57 years with Casio,

getting the prototype for the 14-A to run

successfully was the most unforgettable

moment of “creativity” in my career. I was

confident that it would be a product that

would make a huge impact on society.

My brother Toshio was the inventor of the

14-A. With his innovative mind, he knew from

childhood that he was destined to be an inven-

tor. Meanwhile, Tadao was a kind, family-ori-

ented brother, and he had a strong desire to do

something for society. With the commercial-

ization of the 14-A, we changed the company

name to Casio Computer Co., Ltd. Later we

adopted our corporate creed of “Creativity and

Contribution.” By combining the spirit of cre-

ativity as demonstrated by Toshio and the belief

in contribution embodied by Tadao, the creed

reflects the personalities of my two brothers.

The new 14-A relay calculator was selling so

well that we even had trouble keeping up with

production for a while. Our contribution to soci-

ety through the 14-A was in fact the provision of

completely new value—namely unprecedented

calculator speed and ease of use.

After that, we continued to aim for new prod-

ucts with even higher performance and added

value. In 1962, we completed the AL-1 calculator

for science and technology, as the successor to

the 14-A. The AL-1 had a programming function

and could automatically perform calculations

according to a preset procedure. It was a break-

through product with performance unthinkable

for the calculators of that time. The name

came from the first two letters of “almighty.”

Amid the ups and downs of our history,

there were also major crises. While we were

concentrating on the creation of the ultimate

relay calculator, we fell behind competitors

in the development of electronic calculation

technology, where the industry focus had

shifted. In 1965, we held the launch event for

the 81-model relay calculator capable of high-

speed calculation. However, it lacked speed

when performing division, and our distributors

remarked that relay technology was already

obsolete and were considerably disappointed.

Despite still believing in the untapped potential

of relay technology, Casio had been secretly

developing its own electronic calculators. On the

same day, responding to the distributors’ com-

ments, my third brother, Kazuo decided to show

Special Adviser Yukio Kashio


Technological power that created the era where everyone could own a calculator

The late 1960s and 1970s marked a period

nicknamed the “calculator wars” when

dozens of companies entered the market

to manufacture calculators. This prompted

Casio to pursue a strategy of product

originality based on a desire to provide new

value by creating stand-out products.

Until that time, electronic calculators were

large pieces of business equipment, and high

prices also meant they were far out of the reach

of individual users. Therefore, we decided to

focus on creating calculators with a size and

price that the average person could easily use

for tasks such as calculating scores for bowling,

which was a popular sport at the time in Japan.

To do that, we needed to reduce the calculator

components. Most calculators of the time

displayed eight digits. For home use, however,

we decided that six digits would be enough,

without any decimal points. This enabled us to

reduce the number of integrated circuits from

four down to one. Moreover, we redesigned

the keyboard, which had accounted for most

of the calculator thickness, and substantially

changed the specifications in order to make

it slimmer and easier to manufacture.

The result of these efforts was the

Casio Mini, which became an explosive hit

product. Promoted as the world’s first personal

calculator, it sold a total of 10 million units.

Just like that, Casio had changed the era from

one where each office department had one

calculator to an era where every single person

or household could have their own calculator.

Then in 1983, Casio completed the

world’s thinnest calculator — the credit-card

sized SL-800, boasting a profile of just

0.8 millimeters. To achieve this level of

streamlining, the Casio engineers had to go

far beyond mere improvement of the existing

technology. The production technology team

members revolutionized the technologies for

LCD and solar film creation. This record for a

thin calculator remains unbroken, and marked

the technical pinnacle of calculator slim-lining.

them the electronic calculator that was just

barely out of the development process. Thanks

to Kazuo’s far-sighted judgment and superior

business sense, the distributors were satisfied

and asked us to begin making it right away.

Thus, we made a major course correction,

and began the development of an electronic

desktop calculator. The members of the

small-scale electronic development team

made an extraordinary effort, and the initial

one-year development period estimate was

shortened to four months as a result. It

is safe to say that Casio’s success today

is largely due to the hard work of the

development team members at that time.

Yukio Kashio talking about the AL-1

Casio Mini SL-800


Calculator development that contributed to integrated circuit advancement

By putting everything we had into developing

products for each successive era, Casio man-

aged to create a new universal need that had

not existed before. As a result, the AL-1, Casio

Mini, and SL-800 are widely recognized as

significant developments in the history of sci-

ence and technology. Japan’s National Museum

of Nature and Science lists them as Essential

Historical Materials for Science and Technology.

Looking back on this history again, one

thing I am proud of is that the evolution of

the integrated circuit, which was driven by

our efforts to advance the calculator, made a

major contribution to the field of computing.

Today, integrated circuits are used in all

kinds of electrical products, automobiles

and other devices, and they have become

essential to both daily life and industry.

However, before the calculator wars era,

integrated circuits were still quite uncommon

in Japan. They were invented in the United

States in the 1950s, and their rapid adoption

for personal calculators in Japan enabled a

dramatic popularization of integrated circuit

technology. It paved the way for the growth of

many semiconductor manufacturers, and we

were able to progress together with them.

This also demonstrates our corporate

creed of “Creativity and Contribution.” We

have been contributing to society through

our core business of product creation.

Although Casio’s business environment

has changed a great deal over our nearly

60-year history, this spirit of innovation is our

heritage at Casio—it continues to be passed

down and will remain with us forever.

Aiming to provide even more value and take on further challenges for progress

We must continue to protect our corporate

creed of “Creativity and Contribution” as our

unwavering philosophy, while responding

flexibly to a constantly evolving society. Now

that we have grown to a size unimaginable at

the time of Casio’s founding, it is only natural

that society has even greater expectations for

us to fulfill our corporate responsibilities.

There are many ways to measure corporate

value. In addition to financial indicators such as

sales and profits, today an important evaluation

criterion is whether the company is properly ful-

filling its responsibilities to various stakeholders.

For example, in the past, companies considered

environmental initiatives as a required cost to

ensure legal compliance. However, with the grow-

ing public awareness of environmental issues,

energy-saving products have become a growth

area, and making products that minimize envi-

ronmental impact has become a way to increase

corporate value. These kinds of changes are

occurring in all aspects of our business activities.

In light of all this, I would like to ask

employees to keep up with the changing times

from your individual standpoints, never remain

satisfied with the status quo, and remember

what it feels like to constantly pursue even

better things. When the 14-A was initially

launched, there were still quite a few bugs in

it. I myself performed repeated trial and error

tests in order to improve the relays we had

developed. However, thanks to our efforts, the

14-A was praised for its stability, and it became

a product that could be used in various places.

The company is made up of many different

departments, including development, sales,

administration, and so forth. Nevertheless,

I hope that all employees working at Casio

will undertake their daily work with a sense

that they are helping to create a new future.

In 2017, Casio will celebrate its 60th

anniversary. We will continue striving to be

a valuable company that is appreciated by

society by continuing to deliver appealing

products to the world. Our driving force will

remain Creativity and Contribution, as we take

on the challenge of undaunted progress.


Actual camera and examples of angle-free photos taken with the FR-10

The Charter of Creativity: Second Chapter

We will strive to be of service to society, providing customers with delight, happiness, and pleasure.

The aim of Casio’s product creation is to provide

customers with delight, happiness, and pleasure

every time they hold a Casio product in their hands.

Casio wants to make as many people as possible

smile. The digital camera EXFR10 was developed

based on this kind of employee ambition.

* EXFR10 is not currently available in the USA and Europe.


Creating a communication tool that opens up new possibilities for the camera

Casio envisions the ultimate camera and then embarks on the quest

With its biggest feature being a detachable

LCD-equipped controller, the EX-FR10 (hereafter

called “FR10”) represents a fresh new breeze

in the digital camera market. During the three

years leading up to the product’s launch,

the QV Digital Camera Division, led by Jin

Nakayama, played a key role in the camera’s

development. “Against the backdrop of the

declining digital camera market,” recalled

Nakayama, “the QV Division experienced

a tough time due to poor performance.

Everyone in the division felt a sense of crisis.

There was a sense that we would need to

make the most of Casio’s unique capabilities

to create a new digital camera genre.”

Times were tough, but Nakayama and

his team were able to turn a crisis into a

driving force by deciding to return to the

original concept behind the QV-10. Launched

in 1995, the QV-10 was the world’s first

digital camera equipped with an LCD, and

it ignited the boom in the digital camera

market. “At that time,” recalled Nakayama,

“our aim was to create a completely new

visual communication tool that went beyond

preconceptions about photos and cameras.”

After the launch of the QV-10, the way

cameras were enjoyed changed greatly. People

could take as many pictures as they liked

without worrying about wasting film, and the

images were instantly viewable on the camera

screen. After the period of intense competition

that followed, people now take photos with

their mobile devices and smartphones. “Even

though the digital camera market is in

decline, many photos are being taken, and

situations in which they are being utilized keep

expanding. This means that there are still major

business opportunities latent in this field.”

In their quest to create new value and cultural

phenomena relating to photos, Nakayama

and his team came up with an image of the

ideal camera. They envisioned a camera with

an ultra-wide-angle lens and ultra-high-pixel

resolution that can be used to take photos with-

out lifting a finger, while also allowing photos

to be easily enlarged and cropped later on. It

would not differentiate between still photo and

video capture, and could be used in all kinds of

situations for creating a continual visual record

of daily life. “We wanted to eliminate any bur-

den on the user when it came to pressing the

shutter,” said Nakayama. “It makes no sense if

the user is struggling to press the shutter, and

then misses out on experiencing the moment.

Therefore, we wanted to eliminate as much

as possible the conscious effort needed to

capture an image, so as not to interrupt the

user’s enjoyment.” The resulting FR10 allows

the user to capture images hands free while

doing something else, and to capture them from

all kinds of angles. It is a new advancement

towards that ultimate ideal camera.

During the course of FR10 development,

Nakayama and his team engaged in lively discus-

sion, and experienced the joy and satisfaction of

creating something new. They demonstrated an

unwavering attitude by consciously turning away

from a time when interesting product creation

was not being achieved due to too much discus-

sion on whether or not a product would sell well

amid the contracting market. “The products that

manufacturers should be making are not always

the same as those that can be sold over the

short term. It is essential to have a strong feeling

that even if your new product does not become

a big hit immediately, it will certainly become a

mainstay among future Casio products. Chasing

user needs that are already widely recognized

does not lead to innovation. The aim is to come

up with something completely new that makes

the market stop and realize that this is what it

wanted all along. Our goal is to create product

value that did not exist before.” This reflects

Casio’s conviction that “invention is the mother

of necessity,” as said by the founder of Casio,

the late chairperson emeritus Toshio Kashio.

Jin NakayamaExecutive Officer, Senior General

Manager, QV Digital Camera Division


Repeated trial and error to realize an unprecedented detachable-type camera

By allowing the controller to detach from the

camera, the FR10 enables users to capture

a unique view of the world that goes beyond

the capabilities of conventional cameras.

“However, we didn’t have the idea of making a

detachable camera right from the beginning.”

These are the words of Issei Nonaka, the

person responsible for the development of

the FR10. There was a process of trial and

error involving numerous prototypes that

led to the current form of the new camera.

“Once we had the concept of our ultimate

compact camera, we worked our way towards

a wearable camera that could be attached

anywhere. After investigating a headset-type

device that could allow image capture from the

wearer’s point of view, we realized it wouldn’t

be practical from the standpoints of mounting

and design. In order to make something that

was still wearable, it became essential to

separate the camera

from the controller.”

With the separation

of the camera and

controller, a wireless

data transmission

method was needed. The

development team faced

the challenge of how to

maintain quick response

while minimizing power

consumption. Using

Bluetooth 3.0 technology, the communication

would be faster, but power consumption would

also increase. By using Bluetooth Low Energy

however, the power consumption would be

low, but there would be inadequate speed for

image transfer. “In the end we decided to adopt

Bluetooth 2.1,” said Nonaka, “and we designed

our own protocol to maximize the transfer

speed. Furthermore, we designed it so the

components not being used would automatically

switch into sleep mode, without having to rely

on manual power on/off like in conventional

cameras. This also resulted in power saving.”

There was also heated discussion con-

cerning the unified feel of the product when the

camera and controller were connected. “In order

to create a shared vision, those in charge of

design, development, and sales came together

as professionals, and we had repeated discus-

sions on how to realize something that was

unmistakably a single camera product, but could

be separated into two parts, and how to achieve

a product coolness that would appeal to users.

After overcoming many difficulties, the

FR10 was finally unveiled to the media in

August 2014. The reaction of the press

conference attendees was extremely positive,

and many remarked that the new camera

was very characteristic of Casio. Reflecting on

how far they had come in three years, some

members of the product development team

fought to hold back tears of joy. “Although

there were a lot of challenges, it was a very

rewarding three years for me as a product

developer. Being able to successfully complete

this product from beginning to end was a good

experience for us, and has also increased

motivation within the company.” Nonaka is still

basking in the satisfaction of his experience.

Issei NonakaGeneral Manager,

Product Development Department-2,QV Digital Camera Division

FR10 and prototypes


Incorporating customer ideas and making a camera that is even more fun to use

During development of the FR10, marketing

team members were included in discussions

from an early stage to obtain their perspective

on what kind of value should be provided to

customers and how to position the new camera

in the market. Masayuki Shigeoka, head of

the Digital Imaging Marketing Department,

was the key participant from marketing.

He explained, “The catchphrase and

development concept for EXILIM digital

cameras is ‘Amazing Gear.’ This captures our

strong desire to deliver products that provide

customers with delight, happiness, and plea-

sure, in a way that goes beyond the confines

of existing cameras. This aspiration was also

the key in the development of the FR10.”

There was discussion after discussion on

how to market the FR10 to the target segment.

“It is important for a manufacturer to specifi-

cally show consumers all the different ways that

a product can be used. With the FR10 however,

one of its features is that it enables users to

think up new ways of enjoying the camera.

While indicating outdoor use as a typical way

to enjoy it, we also encouraged users to freely

come up with their own ideas on how to enjoy

it in their daily lives or sports activities, recog-

nizing that these could vary for each individual.

The target participants were men and women

of all ages who enjoyed active lifestyles.”

As a result, the FR10 made a stunning

debut, and generated a lot of buzz. Shigeoka

explained the sales strategy, “In the future, the

important thing for product development will

be to strongly engage the users, and utilize

their feedback for expanding product variation.”

Thanks to the experimentation and feedback of

customers, all kinds of possibilities have opened

up for the FR10. Enthusiasts of paragliding

and fishing captured innovative images never

seen before, and unexpectedly, many others

found ways to use the camera for business

purposes such as on construction sites.

Users chose to wear the camera even more

than anticipated, and the toughness of future

models will need to be further strengthened to

withstand the impact of walking and running.

In many cases, people take pictures in

order to preserve memories. Conventional

cameras have been used as a tool to help

remember enjoyable moments after they

have passed. However, Shigeoka emphasized

that FR10 is a camera that can do more than

that. “The actual use of the FR10 is part of

its fun, and it is also a tool to remember the

excitement of using the camera. It has sufficient

product appeal to change the way cameras are

currently used, and we would like to further

develop the product with this firmly in mind.”

As a manufacturer that always

provides new value that is a step

ahead, Casio will continue taking on the

challenge of FR10 development.

Masayuki ShigeokaGeneral Manager, Digital Imaging

Marketing Department, Global Strategic Marketing Division,

Global Marketing Headquarters


The Charter of Creativity: Third Chapter

We will back up our words and actions with trustworthiness and integrity, and work as professionals.

What kind of presence does the Casio brand

have in markets outside Japan? Here are some

examples of “Creativity and Contribution”

around the world, as well as a look at top Casio

sales professionals in various countries.


Loving the Casio brand will provide you with confidence in customer dealingsJohnson: As vice president at Casio America,

I oversee the Timepiece Division and the

Marketing Division. Prior, I spent many years

as a sales manager focused on timepieces.

I believe that the necessary attitude for

achieving top sales involves loving our

company’s products. To communicate the

appeal of the Casio brand to customers

convincingly means loving the Casio brand

yourself by understanding our products

and researching the market. I believe it

is because we love the Casio brand and

present that allure with confidence during

ongoing presentations to and meetings

with retail representatives, carefully and

passionately conveying the appeal of Casio

products, that we have been able to develop

G-Shock into a world-leading brand.

Our goal is to grow G-Shock into the dom-

inant watch brand in America. That means not

just making a great product, but also continuing

to surprise consumers.

The expectation of further innovative productsSandler: Tourneau, one of the largest specialist

retailers of watches in the US, has sold Casio

watches for more than 15 years.

Casio has continued to innovate in both

function and design, and those products are

both exceptionally tough and reliable. Casio

employees are always providing us with strong

support, and it is a pleasure to do business

with them.

Casio thoroughly understands the needs of

its customers and how to appeal to them. The

result is the popularity of your limited-edition

models. Casio’s corporate creed of “Creativity

and Contribution” is reflected in a thorough

dedication to user needs and original products,

so we are able to convincingly recommend the

Casio brand to our customers.

Casio America, Inc.

Casio France S.A.

(Left) David Johnson Vice President, Timepiece Division

(Right) Michael Sandler Senior Vice President, Merchandising and Strategic Planning, Tourneau

(Right) José Osorio Director, Sales & Marketing Division

(Left) Maria Contreras Category Manager, Camcorders & Office Products, Carrefour

The spirit of creativity to win the trust of the marketOsorio: I am responsible for the French and

Belgian markets for sales and marketing of

educational products such as calculators,

electronic dictionaries and projectors.

Customers must be confident that

Casio’s products are the best if they are to

purchase them. In France and Belgium, we

communicate with educational administration

organs about required calculator functions, and

this information is fed back to the Research

and Development Division. This way, we are

able to deliver compelling products that are

100-percent compliant with national rules and

educational programs.

I believe it is important in terms of work for

team members to move in the same direction

and be managed to work in unity, to have

strong will and determination, and to maintain a

communicative, passionate and happy heart.

Casio’s basic philosophy has always been

to create products that have anticipated the

needs of customers. I believe the market has

responded to this stance. To contribute to Casio’s

development, I would like to use “Creativity and

Contribution” to help build the future.

Building an excellent partnership into the futureContreras: Casio is a key partner for Carrefour in

the calculator market, having built a relationship

over a few decades.

Casio is the leading brand in the calculator

market but, above all, the point that sets you

apart from other businesses is a long-term point

of view. The Casio employees we deal with are

reliable professionals and I feel they take pride

in being the face of the Casio brand.

That we are able to sell Casio calculators

in our stores today is precisely because of your

underlying corporate creed of “Creativity and

Contribution.” I look forward to your continued

commitment so Casio can contribute even

better products.

Casio and Carrefour will continue to be part-

ners, and I hope that we can continue to develop

together through building a good relationship.


Taking on daily challenges to stay true to the aspirations of the foundersOkuda: As a timepiece headquarters negotiator

dealing with regional volume retailers, I am

aiming to increase sell-in to my clients and

improve their sell-through. I help to develop

sales promotion policy and to plan and promote

sales campaigns. Together with my colleagues,

I strive each day to improve my performance.

I find it very rewarding when sales pro-

motions dramatically improve results, and we

receive thanks from our business partners. I am

also very pleased to get positive feedback from

customers who buy Casio products, and it is

great to see sales results showing Casio prod-

uct lines overwhelming those of competitors.

In order to increase sales results as

a top salesperson, I must maintain good

communication with customers, understand

what they are looking for, ascertain and

analyze the market, and identify core issues to

be addressed. For mutual interests to be met,

it is vital to have a strong determination not to

give up, and to reliably make improvements

through tenacious effort. We must never be

satisfied with the status quo, always continue

cultivating Casio’s unique creativity, and con-

stantly take on the challenge of value creation.

We must continue to promote the Casio brand

identity in Japan and around the world.

The most memorable part of my career was

my first year after joining the company. I was

put in charge of new business development at a

time when there were fewer products and dis-

tribution channels. It is hard to believe today, but

back then customers would not even make time

for us. However, it was a valuable experience

where I learned to succeed through persistence,

and by fostering a sense of unity with relevant

departments based on shared goals.

Early on, I became impressed by the

founders’ aspiration to make people’s lives

more enriching and convenient through Casio

products. To keep this aspiration alive, I try to

have a goal each day and move forward without

forgetting the importance of continual chal-

lenge. To remain a leading global company and

a brand that represents Japan, we must keep

updating the concept of a watch using new

approaches and our proprietary technology. We

need to maintain and create watch brands that

are a delight to wear while delivering customer

satisfaction and happiness.

Working with team members to create China’s most outstanding sales forceSu: I am currently responsible for sales

in the Digital Camera Sales Management

Department in China, and I handle both online

and offline distribution.

Along with studying new business concepts

that match the Chinese market, I feel ready

for my job helping to boost the strength of the

Casio brand. I also feel my work is worthwhile

when our salespeople grow through their work

and are recognized by customers and consum-

ers. I want to continue taking on the challenge

of continual innovation, including the exploration

of new sales techniques.

My future dream is to create the most

outstanding sales force in China. Accordingly,

I would like to cultivate sales techniques that

match the Chinese market, and create a stable

business foundation by sharing my experience

and best practices with team members and

distributors. By continuing to meet the needs of

consumers with innovative products, I would like

to help develop Casio into an even more trusted

company full of vitality and innovative spirit.

Wanting Casio to protect its brand and maintain a respected companyWang: Casio not only continues to provide inno-

vative products, but also has an energetic sales

force with a lot of experience. While respecting

market rules and properly ascertaining customer

needs, Casio is also admired by its business

partners. Compared to competitor products,

Casio’s products are clearly the result of research

and development, and the product promotion is

consistent. While ensuring that business partners

also receive appropriate returns, Casio provides

products and services with value for consumers.

Manager Su of Casio China has a wealth

of sales experience and fully understands

the Chinese market. He is also a modest and

mild-mannered salesman. With a forward-looking

focus on sales channel development, he is trying

to actively manage new distribution methods.

Casio quickly came out with a popular

self-portrait camera to meet the demand of the

self-portrait craze among young Chinese women.

I am looking forward to the development of even

more innovative products. By emphasizing Casio

as an admired luxury brand, I would like Casio to

remain as a respected company, and a reliable

partner for many years to come.

Casio (China) Co., Ltd.

Casio Computer Co., Ltd.

Koichi OkudaTimepiece Sales Planning Department, Domestic Sales and Marketing Division, Global Marketing Headquarters

(Right) Su Dong Hao Manager, Sales Department, Digital Camera Sales Division

(Left) Wang Jun General Manager, Shangdong Huijia Technology Co., Ltd.


The key to growth: “Creativity and Contribution” to display uniquenessNg: As the general manager for the Digital

Camera Division at Casio Singapore, I am

involved in a wide range of work, from

planning and purchasing to human resources

development. Even in the current tight market,

I feel that Casio continues to develop wonderful

products that meet new needs and create

business chances. In Singapore, this approach

has resulted in Casio gaining market share in

the compact digital camera market that rivals

major brands.

Casio’s strength lies in being a worldwide

manufacturer and it is important that we

practice the corporate creed of “Creativity and

Contribution” in order to express our unique-

ness. I believe there are three vital skills for

sales managers to implement this philosophy.

The first skill is to lend an ear to customer

needs. The second is build relationships that

allow you to propose good solutions. Finally,

planning is vital to achieve objectives.

My role is to share and expand these skills

with team members. To realize “Creativity

and Contribution,” Casio Singapore is strongly

appealing our brand image to consumers

through efforts such as educational assistance

to elementary school students and CSR

initiatives. We will continue to embrace our role

providing innovative products to society.

Strong bonds supports Casio as our number one brand Keh: We have had a business relationship with

Casio for 13 years. In the past, Casio had issues

with low market share but didn’t give up, mak-

ing efforts to the point where they are now the

most profitable camera brand in our stores.

Casio’s unique product lineup distinguishes

itself from other makers with an ability to per-

ceive future market trends, such as the selfies

that are now so popular in Singapore. Here,

Casio is known as a pioneer in selfie cameras.

Another point is that I know no other sales

representatives as persistent as Casio sales

staff. Whether it’s me or the people around me,

they join us for coffee, lunch and even weekend

family events, making us feel a strong bond. We

are provided with training on Casio products,

and sales representatives share market trends

and selling points for product lineups and

designs based on those trends.

We will continue to support Casio as our

number one brand. I will also continue to

refine our relationship with Casio until I retire,

passing on the baton to the next generation of

our employees.

Casio India Co. Pvt., Ltd.

Casio Singapore Pte., Ltd.

Arun KumarAssistant Manager, Marketing Division

Growing together by not giving up on challenges Kumar: I am responsible for sales promotion

and marketing of CES products throughout

India. The Casio brand in India has some

challenges that differ from other markets.

About one-third of Casio products in India are

counterfeit, and the percentage continues to

grow. In coping with this challenge, we always

remain duly conscious of building and com-

municating the Casio brand and implementing

measures against these inferior and cheap

counterfeit goods.

Even in this situation, we do not give up;

this ongoing challenge provides our greatest

motivation. Difficulties are inherent in any job.

However, I am confident we will overcome this

issue, because continuing tenacity is a neces-

sary ability for professionals.

Of course, work is not always difficult

and provides much hope. My work dream is

to maximize my abilities so that I may grow

with the company. I hope to see a future Casio

that is even more agile, pioneering the market

itself and bringing innovative products into the

world that will grow the company. To realize

such a company for the India market requires

development of calculators that can surpass

current sales, sales of innovative stationery

products and introduction of new products on

a regular basis. I will make ongoing efforts for

these matters so that both the company and I

can grow.

(Left) Johnny Ng General Manager, Digital Camera Division

(Right) Keh Fong Fatt Sole Proprietor, Aik Seng Photo


In its Environmental Vision 2050, Casio articulates objectives for environmental management, looking ahead to the year 2050. Serving as a milestone on the road to 2050, the Casio Environmental Declaration 2020 sets out action guidelines with a target year of 2020. Both the Vision and the Declaration share three priorities: (1) realizing a lowcarbon society; (2) building a recycling society; and (3) living in harmony with nature and preserving biodiversity. By working toward these goals, Casio will ensure legal and regulatory compliance, improve the strength of the Casio brand and highlight the advantages of Casio products — all of which help to meet the expectations of various stakeholders, including customers and suppliers.

Realizing a low-carbon societyIn April 2014, the current Japanese government administration approved a resolution on a new Basic Energy Plan. In preparation for the COP21 conference to be held in Paris, France at the end of 2015, the plan includes consideration of new goals for climate change policies beyond the year 2020 as well as international frameworks for achieving those goals. As one of the leading efforts in

Japan in this area, Keidanren ( Japan Business Federation) issued its Commitment to a Low Carbon Society in April 2013. Casio has announced that it will participate in the Commitment. The company is working hard in the area of energy conservation, seeking to reduce average annual perunit energy consumption by 1% by 2020. In 2014, Casio began calculating and disclosing its Scope 3 emissions in all categories applicable to Casio’s business in order to determine the greenhouse gas emissions of its entire supply chain. The company plans to improve calculation accuracy and set effective goals for CO2 emissions reduction.

Building a recycling societyAs part of efforts to make compact, lightweight, slim, and energyefficient products, Casio designates products that fulfill its own higher eco product standards as Casio Green Star Products. The company achieved its goal to see these products account for 50% of total fiscal 2015 sales. Now six years since it set certification criteria for Casio Green Star Products in 2009, Casio plans to revise the criteria, taking into consideration environmental

priorities that were not contemplated at that time. Meanwhile, Casio will keep working to provide products with even better environmental performance, doing its part to help build a recycling society.

Living in harmony with nature and preserving biodiversityIn March 2011, Casio issued the Casio Group Biodiversity Guidelines. Under these guidelines, the company established a target for implementing impact assessments, aiming to preserve biodiversity. However, groupwide initiatives for the use of sustainable paper did not begin until more recently, so this issue was given greater priority. In fiscal 2013, preliminary investigations began into Casio’s paper procurement situation, and in June 2015, a Paper Procurement Policy for the Casio Group was established. All the companies of the Casio Group intend to promote activities based on this Paper Procurement Policy, while ensuring that suppliers and other stakeholders are also well aware of it. Through these efforts, Casio will continue to help preserve biodiversity.

Casio’s goal is to help build a more sustainable world while contributing to the creation of new markets and cultural phenomenon by developing compact, lightweight, slim, and energy-efficient products.

Basic Environmental Policies


Based on the Casio Group Biodiversity Guidelines, established in 2011, the company

created a medium-term plan. Under the plan, it has launched biodiversity impact

studies in its product and site-related activities, and is examining and implementing

biodiversity preservation measures to be achieved by fiscal 2016. One such result is

the Paper Procurement Policy shown below, established in June 2015.

Casio Group Paper Procurement PolicyPurpose: To preserve biodiversity by protecting and sustainably using the

forest resources which provide the raw material for paper.Scope: All paper products procured by the Casio Group worldwidePolicy: Casio will procure paper for use in its business activities

according to the following standards: 1) Paper must be made from trees harvested in accordance with

the laws and regulations governing the logging area concerned 2) Products must not come from companies that are destroying

any forest with high conservation value or that are a source of serious environmental or social issues

3) Priority must be given to reliable certified paper or recycled paper

Through the enactment of this paper procurement policy, Casio seeks to raise

the awareness of its paper suppliers concerning the importance of biodiversity

preservation through the paper supply. Casio also aims to use its position as

a consumer product manufacturer to raise public awareness of biodiversity

issues, and we hope that publicizing our Paper Procurement Policy will help to

achieve this.

Through corporate initiatives and activities such

as the Consortium for Sustainable Paper Use, in which

Casio has participated since June 2014, the company

will continue to raise biodiversity awareness in society.

Paper Procurement Policy established

Environmental Highlights

Casio Environmental Vision 2050

Casio Environmental Declaration 2020

Hisao Tosaka,Environmental Planning Section, Engineering Department,

Production Materials Management Division

Realizing a low-carbon society

Building a recycling society

Living in harmony with nature

With a target year of 2050, the Casio Group will create and implement its own visionary initiatives to promote the sustainable use of energy and resources and facilitate the healthy coexistence of all living things, the planet’s greatest assets.

Casio’s aim is to become a leading environmental company that contributes not only to a sound and sustainable global environment but also to the spiritual richness of people’s lives. Casio’s unique way of achieving this is by creating new value and lifestyle possibilities that give rise to markets and cultural phenomena never seen before.

To become a leading environmental company, Casio will apply its spirit of going from “0” to “1,” or creating “something” from “nothing,” to develop unique environmental initiatives and create products and services that make the most of its innovative ideas and leading technologies, focusing in particular on the following areas:

Action guidelines for 2020

1. Realizing a low-carbon societyThe Casio Group will provide products and ser-vices that make an even greater contribution to the reduction and absorption of CO2 emissions. In addition to expanding products and services that use energy sources that are friendly to people and the planet, including solar, wind, and hydro power, Casio will incorporate these renewable energy sources into its own business operations.

2. Building a recycling societyThe Casio Group intends to further enhance resource productivity through the efficient use of water and other precious resources of the planet, including the reuse of resources and the utilization of alternate materials.

3. Living in harmony with natureThe Casio Group is promoting awareness of the need to take care of the planet through biodiversity preservation activities, while working to achieve harmony between business activities and the cycles of nature.


Casio Welcomes Environmental ChallengesSeeking to do its part in building a more sustainable global society, Casio is working to ensure that its product creation process is entirely environmental friendly. This means the entire product lifecycle from design, manufacturing and distribution, to product use and recycling.

Reducing the Environmental Impact of Business Activities

Realizing a low-carbon society Building a recycling society

In fiscal 2015, emissions were 38.5% lower than in fiscal 2011, already achieving the target. Nevertheless, Casio will keep working to further reduce CO2 emissions. In August 2011, the logistics center was relocated from Suzuka City, Mie Prefecture to Toda City, Saitama Prefecture. In January 2012, the Eastern Distribution Center in Koto-ku, Tokyo was amalgamated with the logistics center. Through this staged effort, Casio reduced the number of consumer distribution centers in Japan from five to four. This transition not only shortened transportation distances, but also facilitated a modal shift from truck to rail, helping to further reduce CO2 emissions. In fiscal 2013, Casio began an initiative to send products manufactured overseas directly to the Western Distribution Center in Osaka. This allows transport distances to be shortened significantly by cutting out transit through the Toda Logistics Center.

In fiscal 2015, CO2 emissions for the entire group were 38,483 tons-CO2, up 0.3% compared to fiscal 2014. This was due to an approximately 17% deterioration in the CO2 emission coefficient for electricity in Japan, which is used to calculate the amount of CO2 emissions generated per unit of electricity consumed. Compared to fiscal 2006, the base year for the medium-term targets, emissions have been reduced by 31.6%, thereby achieving the goal for fiscal 2021.

Achieve by FY2016 a 20% reduction in CO2 emissions* from logistics in Japan per unit of sales, compared to FY2011

* Business activities: This indicates activities of production sites and offices in Japan and overseas, and does not include CO2 emissions from logistics, product usage, or employee travel.

* For evaluation of medium and longterm targets, starting in fiscal 2015, base year (fiscal 2006) figures are adjusted according to the GHG Protocol.

* Scope covers processes relating to product sales, not including processes relating to materials procurement and recycling

Medium- and long-term targets for greenhouse gas emissions reduction and FY2015 results

Target for water usage reduction and FY2015 results

Logistics target for CO2 emissions reduction

In fiscal 2015, the reduction was 53,000 m3, 18.1% compared to fiscal 2011, and the target was achieved. Along with increased production at Yamagata Casio, water usage has risen since fiscal 2014. Casio will continue to pursue further reductions. Although data from Yamanashi Plant of Yamagata Casio was not included in the base year level, it has been incorporated into the actual figures starting in fiscal 2014.

In fiscal 2015, the reduction was 147,000 m3, 65.6% compared to fiscal 2011, and the target was achieved. The reasons for this were the closure of the Panyu Factory of Casio Computer (Hong Kong) in fiscal 2014 and lower production at some sites in fiscal 2015. Casio will continue to strive to achieve further reductions.

Resources consumed through human activities

Water resources

Equivalent of1.5 planet earths

2 out of 3 people

Resources needed to maintain current standard of living

Global population facing water shortages by 2025:

* The estimated temperature rise ranges from 2.6 °C to 4.8 °C in the worst-case scenario

* “Fifth Assessment Report: Working Group Report,” Intergovernmental Panel on Climate Change (IPCC)

* “2014 Living Planet Report,” World Wide Fund for Nature (WWF)

* “Fourth Global Environment Outlook,” United Nations Environment Programme (UNEP)

Reduce water usage by 5% by FY2016 compared to FY2011

Reduce the total volume of global green-house gas emissions from business activities by 30% compared to FY2006, by FY2021

Reduce the total volume of global green-house gas emissions from business activities by 80% compared to FY2006, by FY2051

Reduce by

30%

Reduce by

20%

Target

Target

Reduced by

31.6%

Reduced by

38.5%

Result

Result

Global warming Max.+4.8°CRise in average global

temperatures by 2100:

Medium-term target Long-term target

Reduce by

80%

TargetReduced by

31.6%

ResultJapan production sites

Reduce water usage by 5% by FY2016 compared to FY2011

Target

Target

Result

Result

Reduce by

5%

Reduce by

5%

Reduced by

18.1%

Reduced by

65.6%

Production sites outside Japan


n Calculators

Environmental Features

l Solar battery powered

l Contains at least 40% recycled plastic (gross weight ratio of plastic)

n Electronic dictionaries


l Transport efficiency increased by 54% by reduced packaging (compared to Casio’s XD-SP6600)

n Label printers


l Energy consumption during use reduced by 28% (compared to Casio’s KL-V450)

n Digital cameras


l Transport efficiency increased by 114% by reduced packaging (compared to Casio’s EX-Z1200)

n Data projectorsEnvironmental Features

l We do not use a mercury light source

l Weight reduced by 28% (compared to Casio’s XJ-M141)

n Electronic musical instruments


l Energy consumption during use reduced by 44% (compared to Casio’s AP-500)

n Watches


l Solar battery powered

n Page printers


l Energy consumption during use reduced by 67% (TEC value in compared to Casio’s N6100)

n Handheld terminals

Environmental Featuresl Energy consumption during use

reduced by 33%

l Size reduced by 18% (compared to Casio’s DT-930)

Creating Products That Make an Environmental Contribution

Biodiversity preservation targets

Living in harmony with nature

FY2014Conduct a pilot study based on the impact survey sheet prepared in cooperation with NPOs/NGOs. Examine strategy and direction for programs in light of the pilot study and its analysis and response to the Action Plan and Guidelines for the Electrical and Electronics Industries.

FY2015Based on results in FY2014, make improvements to the impact study sheet and the structure of the study and expand the scope of the impact study, taking priority level into consideration. Examine measures for biodiversity in procurement.

FY2016Analyze the results up to FY2015, identify issues and establish and implement action themes to reduce biodiversity impact.

In fiscal 2014, Casio conducted pilot studies of paper use associated with both its products and offices in Japan, and found no major problems in either area. In fiscal 2015, biodiversity preservation guidelines were established and published by Japan’s electrical and electronics industry association. In fiscal 2016, Casio established and implemented its Paper Procurement Policy.

Based on the Casio Group Biodiversity Guidelines, commence a biodiversity impact study for products and sites and examine and implement measures to reduce biodiversity impact by fiscal 2016, which will include procurement.

Biodiversity 52%Decline in global biodiversity over the last 40 years:

* “2014 Living Planet Report,” World Wide Fund for Nature (WWF)

Consider details concerning design, procurement, manufacture, packaging, sales, logistics and recycling of products.

For products

Consider details concerning location and operation of plants and offices.

For sites

This mark indicates that the product was developed based on the Green Star concept.

XJ-V1

EX-ZR1600

JS-20WK-N

KL-V460

XD-K6500

GE6000

DT-970

AP-650

From left:OCW-G1000SHW-1700SG


Where Should Casio Focus Its CSR Efforts to Help Build a Sustainable Global Society?

What are society's expectations today concerning corporate social responsibility, and what should Casio be doing to meet them? We invited Toshihiko Goto, Chief Executive of the Sustainability Forum Japan, for a conversation with Noriaki Kimura, Section Manager of the CSR Promotion Office, General Affairs and Personnel Department. They discussed the latest CSR developments and Casio's initiatives for the future.

Latest CSR developments relating to future management strategyToday, companies find themselves in an environment of major change. One of the roots of these changes

relates to the fact that the economic system of mass production, mass consumption, and mass disposal is

now reaching its limits.

Since the Industrial Revolution, the world's population has grown substantially along with the improve-

ment in productivity. From a global population of 1.65 billion people in 1900, the number grew about four

times in the 20th century. Meanwhile, consumption of resources and energy, especially in developed coun-

tries, continues to grow. In order to meet worldwide demand, it is estimated that the resources of 1.5 planet

earths are now needed. As awareness of this crisis situation grows, the need to transition to a sustainable

global society has become a problem affecting the very survival of humankind.

Accordingly, people have also been looking at the role companies need to play in order to help change

society. In 2006, the United Nations proposed the Principles for Responsible Investment (PRI), which calls

on institutional investors to make investment decisions based on environmental, social and governance

(ESG) factors—or in other words, by considering a company’s social responsibility efforts. In 2013, the

International Integrated Reporting Council (IIRC) issued the International Integrated Reporting Framework,

which encourages reporting on long-term development

with integrated financial and non-financial information.

Amid this growing global momentum, the Stewardship

Code and Corporate Governance Code have been

introduced in Japan by the Abe administration. The

Stewardship Code encourages institutional investors to

accurately ascertain ESG conditions at the companies

they invest in, including their governance measures and

response to social and environmental problems. On the

other hand, the Corporate Governance Code encourages listed companies to actively take ESG measures. A

major feature of these new codes is the choice for companies to “comply or explain.”

In order for Japan and humankind to attain sustainability, companies are being asked to pursue their own

growth in a way that also helps build a sustainable society. Those companies that embrace the new era will

enjoy a surge of development, while those that do not will gradually ebb into decline.

Target setting with a long-term viewGoto: By February 2015, 184 institutional investors in Japan had

expressed support for the new Stewardship Code, and they have

started to move quickly in order to create fund management mecha-

nisms for incorporating non-financial information including ESG data.

Have any of Casio's investors requested a dialog so far?

Kimura: Although the numbers are still very small, some financial

institutions have requested interviews and the start of a trend can

be seen. It seems that the way we handle the move towards ESG

investment will have a large impact on our future success.

Goto: I think we are at the point where companies are being assessed

by how seriously they will address the Corporate Governance Code.

If a company wants to seriously consider sustainability issues, then it

has to do more than just prepare short-term sales plans. Considering

a variety of prerequisites including Japanese government policies

and world trends, companies need to clarify their own paths forward.

Those that have undertaken initiatives based on definite policies and

plans with a long-term view are on the way to sustainable growth.

However, companies that have just tried to perform superficial green-

washing will certainly no longer be able to keep up with the changes.

Kimura: Here at Casio, we are in the middle of the development

of long-term goals that will enable us to move our entire group of

companies forward in a single direction. For example, we are now at

the stage of thinking hard about what kind of business portfolio we

should be aiming for, and what kind of business domains to expand

into, in order for Casio to maintain our presence as a trusted company.

Toshihiko GotoChief Executive Officer, Sustainability Forum Japan (NPO)


Our sights are set on the next ten years until 2025, and then even

further out to 2050. However, the difficult thing is to predict what the

future will be like in 2050, or even a decade from now in 2025. This

includes climate change, population issues, as well as cultural trends.

Everyone has a different view of the future.

Goto: As you say, a variety of different assumptions can be made about

what the world will be like in several decades, but the actual future may

well deviate from predictions. Once you set targets, then there will always

be people who are fastidious about numbers. But the setting of numerical

targets can then almost become meaningless. However, even though pre-

dicting the future is difficult, it is possible to determine a broad direction,

such as reducing net CO2 emissions to as close to zero as possible. On top

of that, while monitoring its own environment, a company can continue to

anticipate the needs of society. That is not only using ESG as a risk factor,

but it will also become a source of competitiveness as a return factor.

Specifying material issues with an awareness of future visionKimura: With the recent appointment of the first new Casio president

in 27 years, a new era has begun at our company. The new president

is also deeply aware of the importance of long-term initiatives.

Therefore, I think it is important to create a solid system, and for all

employees to join forces and take on the challenge of change.

Goto: The arrival of a fresh top executive is a good time for internally

driven change. You could say that Casio is now at an optimal point

for change thanks to the internal and external momentum. Given this

situation, it is fantastic that your new president is aware of the need to

buckle down and formulate plans.

Kimura: Until now, Casio has pursued CSR activities based on ISO

26000, and has prepared information disclosure based on the 4th

edition of the GRI Guidelines. In the future, however, we must further

emphasize proactive CSR with an awareness of the need to create

shared value (CSV*). If we can set up a broad direction for future

strategy based on the new system, milestone goals can also be

considered. As part of this, we will also work to specify the CSR issues

that have the most materiality for our business.

Goto: The specification of issues with materiality, including measures

to address social and environmental issues, is also required by the

Corporate Governance Code. The larger a company becomes, the

more pressure it receives from various quarters, and diverse initiatives

become essential. Even so, in order to be aware of important issues

from a medium and long-term perspective and prioritize them, the

company will be asked about the connection to its corporate story

or vision for moving forward. It is essential that vision awareness be

shared throughout the company.

Kimura: I think corporate storytelling is very important. To be an

outstanding storyteller, the top management tells a corporate story

that instills a dream in employees and gives them motivation.

Goto: That's right. Investors are also looking for those kinds of

inspiring stories. Companies that have a corporate story relating to

ESG factors tend to be held in higher esteem, and it is essential to

provide accurate information.

Making CSR an individual concern for employeesGoto: When preparing a company-wide long-term vision, it is import-

ant to promote it horizontally across the company. When a company

* A process by which a company makes and executes policies to increase its own competitiveness, while helping to improve the economic and social conditions in the communities in which it operates.

becomes larger, it tends to become divided into separate vertical

organizations. Therefore, it is necessary to foster a shared awareness

created by an organization such as a CSR committee.

Kimura: For the company's long-term goals, unless the strategies of

various departments such as CSR, sales, human resources and finance

are organically bound together, they don't have much meaning.

It seems that currently, many employees have trouble linking

CSR issues to their own jobs, compared with more immediate profit

and development targets. For employees to incorporate CSR issues

into their own operational targets, we need to also revise the human

resources evaluation system. As long as there is no mechanism for

superiors to properly evaluate their subordinates’ contributions to CSR,

employees will not be able to see CSR as part of their own work.

Goto: Employees do not act on their own initiative if they are just told

what and how to do something, without any reasons why. By learning

why CSR and ESG are important to the company and their own jobs,

employees can truly consider what needs to be done and how to do

it. In addition, companies have to explain to outside stakeholders why

they are focusing on CSR efforts, before they list up their initiatives

and implementation methods. Casio has an advantage because you

have been seriously thinking about your long-term vision for over a

year prior to the enactment of the Corporate Governance Code. By

involving the whole company, I hope you will sail forward and ride the

large wave of change that is emerging right before our very eyes.

Mr. Goto (left) and Noriaki Kimura, Section Manager of the CSR Promotion Office (right)


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Company datau Name: Casio Computer Co., Ltd.

u Headquarters: 162, Honmachi, Shibuyaku,

Tokyo, Japan, 1518543

u Established: June 1, 1957

u President and CEO: Kazuhiro Kashio

u Employees: 2,677 (consolidated: 11,592)

u Paidin capital: ¥48,592 million

u Net sales: ¥338,389 million (consolidated)

u Operating income: ¥36,763 million (consolidated)

u Ordinary income: ¥37,857 million (consolidated)

u Net income: ¥26,400 million (consolidated)

* As of March 31, 2015

Corporate Overview

Sales by segment and region

Sales by segment Sales by region

Japan

North America

Europe

Asia and others

l Consumer• Watches

• Clocks

• Electronic dictionaries

• Calculators

• Label printers and photo printers

• Electronic musical instruments

• Digital cameras, etc.

Sales: ¥287,113 million (84.8%)

l Others• Molds, etc.

Sales: ¥10,428 million (3.1%)

l System Equipment• Handheld terminals

• Electronic cash registers

• Office computers

• Page printers

• Data projectors, etc.

Sales: ¥40,848 million (12.1%)

31.4%40.5%

15.2%12.9%

Group companies by region

Europe8

companies

Americas6

companies

Asia (including Japan)

27companies

Middle East1

company

Sales

¥338,389million

Documents

CASIO CSR Communication Book 2015...CSR Implementation Framework As an enterprise with a worldwide reach, Casio has endorsed and is guided by the universal principles of the UN Global