Sustainability R
eport 2006
Sustainability Report2006
Toward a Sustainable Society —
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Fuji
Xer
ox S
usta
inab
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y R
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06
This report is printed using 100% vegetable oil-based ink, which contains no volatile organic compounds (VOCs). Printed in Japan
印刷サービスのグリーン購入に取り組んでいます
Mr. Saito is an attorney at law since 1978 and currently works as an auditor for Neturen Co., Ltd. He is also a member of the Operation Committee at the Japan Federation of Bar Associations’ Center for Promotion of Legal Practice. Additionally, he is the vice-chair of the same organization’s Project Team for Human Rights and Corporate Responsibility Evaluation and Assistance. He was born in 1946, and is a graduate of the Faculty of Law of Tokyo Metropolitan University.
Makoto Saito
1. Judging from the commitment of President Toshio Arima and Chief Corporate Advisor Yotaro Kobayashi, as expressed in their own words, the foremost characteristic of CSR activities at Fuji Xerox is an extremely clear intent at the top of the organization regarding the essence of CSR as related to the business activities of the company.
As a result, the various topics in the Highlight sections of this report were all positively evaluated as initiatives to realize CSR. Valuable CSR-related efforts within Fuji Xerox include directing the company’s core document business toward the realization of CSR by constructing internal control systems for corporate customers; support for employee diversity, including women’s activities; consistent implementation both domestically and overseas with respect to issues such as compliance and employee issues in China; promotion of sustainability in paper procurement, a fundamental part of the company’s document business; and the establishment of the comprehensive Integrated Recycling System.
2. On the other hand, the report is incomplete in that it does not provide readily understandable explanations of future companywide goals or present the degree of achievement from a comprehensive CSR perspective, and time-based and companywide degrees of achievements with respect to the various issues discussed. In addition, although Fuji Xerox earns high marks for information disclosure, and has admitted that scores measuring employees’ core morale have declined for two consecutive years, it is somewhat problematic that no countermeasures are proposed. Also, the report cannot be positively evaluated in terms of the information included regarding the relation between Fuji Xerox and its stakeholders.
3. Based on the commitment of top management, Fuji Xerox’s core document business is directed toward CSR realization, and the company is positioning global CSR activities in a manner that is consistent both in Japan and overseas. Environmental issues are also being viewed from an far-reaching perspective, from upstream planning stages to downstream reuse and recycling. Virtually all of the important components of CSR are addressed. Nevertheless, it would appear that gaps are still present, in the sense that internal structures are not necessarily responding to this.
The report states that the CSR Committee is the “highest decision-making body with respect to the environment,” and if the CSR Committee is literally the “highest comprehensive decision-making body for CSR,” it would be desirable to place a CSR representative as a focal point in each department of the company. Through companywide functioning of CSR management, Fuji Xerox should expand its CSR efforts from a line to a plane, further deploying these both spatially and organically. This will likely be an important element in the further development of Fuji Xerox as a company dedicated to providing corporate customers with quality CSR.
It is to be hoped that Fuji Xerox will thereby arrive at a new business model featuring total implementation of CSR. In so doing, there is also a need for greatly expanded frank and honest dialogue with the various stakeholders involved.
The foregoing represents my opinion on the present report.
Editorial Policy
Fuji Xerox and its affi liates are carrying out business with global environmental and social issues in
mind. We are also taking on the challenge of solving these issues to become “good companies” for our
various stakeholders.
This report introduces efforts to solve issues concerning business operations and the current
status of the activities being carried out in relation to these efforts. It also attaches importance to the
presentation of policies and attitudes regarding issues, so that it is more than just a simple report of
activities and statistical data. In terms of activities, we particularly wish to report that the information
was gathered from a third-party perspective from those responsible for or concerned with these
activities, which is then summarized as “Highlights.”
Reference guidelines• 2002 Sustainability Reporting Guidelines of the GRI*• Environmental Reporting Guidelines (FY2003) of the Ministry of the Environment• Corporate evaluation standards in the 15th Corporate White Paper issued by the Japan Association of Corporate
Executives
Visit our Web site for a table comparing the guidelines of GRI and the Ministry of the Environment.* GRI: Abbreviation for the Global Reporting Initiative, an international organization established in 1997 to develop globally applicable guidelines for
corporate sustainability reports.
Scope of coverageThe data on environmental impact for Fuji Xerox and its affi liates covers all the domestic sites and overseas production sites that are subject to environmental accounting. As a rule, this report covers data from April 1, 2005 to March 31, 2006, which is Fuji Xerox’s fi scal year, but certain parts of the report provide data for the period starting from April 2006.
Third party opinionsFor a third party perspective on Fuji Xerox activities, we have received opinions from Hitotsubashi University Graduate School Professor Kanji Tanimoto and a lawyer, Makoto Saito.
Release schedule for the next reportSeptember 2007
The Sustainability Report 2006 is provided in a print version and an online version.
(1) Print version (56 pages)
The print version focuses on Top Management’s Commitment and Highlights, and presents Management & Performance in an abbreviated form.
(2) Online version (comprises 100 sections with information equivalent to 250 A4-size sheets of paper)
In the online version, the Management & Performance section provides in-depth reports on a wider range of activities than before. The online version also offers various navigation tools, such as report maps and guideline comparison tables (GRI/Ministry of the Environment), so that readers can easily access the information they are interested in. For
details, please see page 33.
We would be pleased to hear your opinions regarding our activities, and we hope that you will take a moment to fi ll out our survey.
For more information, see the online version at: http://www.fujixerox.co.jp/eng/sr/
Fuji Xerox Sustainability Report 2006 2 Fuji Xerox Sustainability Report 2006 55
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Our Vision
Aiming for a Sustainable Society Through Communication and Utilization of Knowledge············· 4
Top Management’s Commitment
Striving to be a Partner That Raises the Quality of Corporate Management Through Documents·············· 6
··············································· 9
Highlight 1
Documents for Enhancing Management···················· 10
Highlight 2
Compliance Is More Than Just Formal Measures········ 14
Highlight 3
Becoming a Company Where Employees Can Work With Enthusiasm············································ 18
Highlight 4
Becoming a Company That Is Truly Rooted inChinese Society························································ 22
Highlight 5
Toward a Sustainable Model for Paper Procurement ··· 26
Highlight 6
The Long Road to a Recycling-Based Production System···················································· 28
“Togetherness” at Fuji Xerox ·································· 30
Learning CSR From Other Companies····················· 32
········································· 33
Management and Organization······························· 34
Social Performance Report······································ 38
Environmental Performance Report························ 44
Corporate Profi le···················································· 52
Third Party Opinions······················································· 54
Fuji Xerox Sustainability Report 2006 3
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A strong company—providing outstanding services and creating value
A kind company—toward both the local community and international community, through its environmental initiatives, ethics, and contribution to society
Build an environment for the creation and effective utilization
of knowledge
An interesting company—where employees can enjoy their personal and professional lives
We,
the
Fuj
i Xer
ox G
roup
, will
str
ive
to;
Contribute to the advancement of the global community by
continuously fostering mutual trust and enriching diverse
cultures
Achieve growth and fulfillment in Both
our professional and personal lives
Fuji Xerox Sustainability Report 2006 4
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Documents for Enhancing Management P10
Compliance Is More Than Just Formal Measures P14
Becoming a Company Where Employees Can Work With Enthusiasm
P18
Becoming a Company That Is Truly Rooted inChinese Society
P22
Toward a Sustainable Model for Paper Procurement
P26
The Long Road to a Recycling-Based Production System
P28
Fuji Xerox Sustainability Report 2006 5
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Striving to be a Partner That Raises the Quality of Corporate Management Through Documents
Fuji Xerox Sustainability Report 2006 6
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A legacy for the futureWhen I joined Fuji Xerox in 1967, it was a small
venture startup that had been in business for just f ive
years, providing copy services through equipment rentals.
I remember the attraction I felt to this future-oriented
company, inspired by the possibilities opened up by
revolutionary xerography technology to provide value to
society, the strong sense of social commitment on the part
of the management of such a small f irm, and the sheer
intensity of the highly individualistic employees who
think creatively.
Many things have changed with the passing decades
since I joined the Company, including business f ields,
products, technology, and sales and support structures,
and will continue to change. In fact, we have to change
as we move forward. However, there are some things
that have been handed down from the beginning that
our employees should never lose sight of. Our business
mission to “build an environment for the creation and
effective utilization of knowledge” for people throughout
the world; the concept at the very core of our business of
“providing added value to our customers, and not merely
equipment;” and the point of departure for realizing these
approaches, which is for our employees to perceive their
jobs as being interesting. These elements of the corporate
philosophy are part of a legacy that is essential to Fuji
Xerox of the future.
Three challenges for Fuji Xerox in seeking to realize sustainability
In an increasingly competitive environment, f irms
must produce short-term economic results even as they
are required to meet the wide-ranging expectations
of society in the longer term. We are in an era where
sustainability cannot be assured for f irms that fail to
achieve this balance. On the other hand, as more f irms
actually do achieve this, they help safeguard and enrich
the global environment and society, serving as a key to
realizing sustainability, which is a common concern for all
mankind.
Against this background, how can we, Fuji Xerox,
which promotes the “creation and effective utilization of
knowledge” contribute? Discovering and offering better
answers to this question is Fuji Xerox’s “role in society.”
In other words, we see this as being at the center of our
contributions to sustainability of the environment and
society.
There are three challenges that we face in this context:
“creating added value document services that meet the
expectations of society”, “developing a global business
that responds to social awareness,” and “maintaining a
corporate environment in which our employees feel work
is “interesting” and are “engaged.”
We support our customers to improve t hei r cor porate qua l it y t h rough document services
We constantly work toward creating new services
that will allow us to continue to provide added value to
our customers, and the hottest topic at the moment is
“solutions for internal controls.”
Currently, documents hold the key to the business
process controls that companies require. Firms need to
be able to tie their core management data to “dynamic”
information, and to deliver explanations characterized by
transparency. With integrated and secure management
of documents in paper, electronic, and other forms,
enterprises can be managed in a more justif iable and
transparent manner. Fuji Xerox provides an infrastructure
that actively encourages compatibility and fusion between
mission-critical systems and paper documents. We are
conf ident that utilization of this infrastructure allows
not only the construction of systems for better internal
controls, but also the establishment of more eff icient
business processes toward higher corporate quality.
Establishing business processes with our partners to ref lect social and environmental requirements
Fuji Xerox is energetically promoting the globalization
of our business, and an important challenge for us is to
respond to greater environmental and social awareness in
our business processes.
In 2002, Fuji Xerox signed the global compact proposed
by UN Secretary General Kofi Annan, and, using this to
gauge our corporate behavior, we are working to eliminate
Fuji Xerox Sustainability Report 2006 7
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Using employees sense of interest in their jobs as an engine of growth
“People” are naturally the prime movers in creating new
services and globally implementing efforts that provide
value to society. At Fuji Xerox, each successive generation
of top management has shared the perception that when
employees’ feel that their own jobs are “interesting,” their
engagement serves as the starting point in the cycle of
value creation. If our employees can nurture their own
individuality and sensitivity within their family and
social relationships, as they enthusiastically apply that
individuality and sensitivity in their work, they will be
able to deliver new value to society and achieve corporate
quality that they can take pride in. As president, I see
two distinct perspectives from which this concept of Fuji
Xerox “people” should be considered anew.
The f irst perspective concerns “working styles.” Fuji
Xerox has a progressive history, demonstrated by various
undertak ings, such as the 1970 release of a socia l
statement titled “From Moretsu (Hustle) to Beautiful,”
calling for a change in values, the “New Work Way” of
the 1980s, which welcomed diversity, the development
of information equipment that supports advanced work
styles, and the early introduction of f lexible personnel
systems. Now, as companies are increasingly expected
to shift their work-related values to encompass diversity
and a balance between work and personal life, we need
to re-evaluate whether our activities are desirable in this
respect.
The second perspective is “work that is rewarding,”
i.e., whether the jobs are “interesting” for our employees.
I want Fuji Xerox to be a place where employees are so
eager that they cannot wait to achieve the company’s
objectives and their own goals, a place where people feel
like they are constantly growing.
As president of the Company, I want to continue
dialogue with our employees, and to establish goals that
people can set themselves with enthusiasm.
the difference in standards between our actions at home in
Japan and those in other countries.
FY2006 represents a milestone in this regard, with
the goal of realizing ethical sourcing (CSR procurement)
both at home and abroad. In addition to Fuji Xerox sites
and aff iliates, we investigate social and environmental
conditions together with our suppliers and transaction
partners. Through the exchange of opinions on issues and
sharing expertise beyond corporate barriers, we aim to
build an effective structure to pursue ethical sourcing.
Integrating dialogue with our stakeholders into Fuji Xerox’s management
October 2006 wil l see the launch of FUJIFILM
Holdings Corporation, a holding company that wil l
include both Fuji Photo Film and Fuji Xerox. Fuji Xerox
will fully assume its role and responsibility as a member of
this new organization, while also maintaining its unique
philosophy and approach, as communicated in this report.
The voices expressed in dialogue with our customers
and other stakeholders will serve as a springboard for
higher corporate quality, and I look forward to receiving
frank opinions as we work together to consider and
address social and environmental issues.
Toshio ArimaPresident and Representative DirectorFuji Xerox Co., Ltd.
Fuji Xerox Sustainability Report 2006 8
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What is the essence of Fuji Xerox?
What type of value can Fuji Xerox provide society?
Fuji Xerox is asking itself these questions, and to provide
clear answers to stakeholders we have summarized our
activities into a series of “Highlights.”
This section describes the challenges we are taking on to
help create a sustainable society and global environment.
P10Highlight 1
Becoming a Company That Is Truly Rooted in Chinese Society
Documents for Enhancing Management
Compliance Is More Than Just Formal Measures
Becoming a Company Where Employees Can Work With Enthusiasm
Toward a Sustainable Model for Paper Procurement
The Long Road to a Recycling-Based Production System
P14Highlight 2
P18Highlight 3
P22Highlight 4
P26Highlight 5
P28Highlight 6
Values Fuji Xerox Can Provide to SocietyThrough Its Core Business 1Responses to Global Environmental Impact 2, 3, 4A System That Supportsthe Unique Characteristics of Fuji Xerox 5, 6
Fuji Xerox Sustainability Report 2006 9
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Documents for Enhancing Management
With the enforcement of Japan’s version of the Sarbanes-Oxley Act just around the corner, corporations are scrambling
to put internal controls in place. Fuji Xerox, by offering an e-RM (electronic Records Management) platform, which
advances the creation and effective utilization of knowledge, is at the forefront of providing support toward establishing
internal controls. Here is what it involves.
Fuji Xerox Sustainability Report 2006 10
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Internal controls
CSR
e-RMTM
Components
Platform
Themes
Objectives
Integration of work processes and “evidence” management; Merging of analog and digital records
Security Workflow Repository Web sites Backbone
Business continuationin emergencies
Privacy protection/Information leakage prevention
Reliability of financialreporting Legal compliance Environment/Quality
Business effectiveness and efficiency
Accountability Disclosure Transparency
e-RM concept
Dilemma of establishing internal controls
Corporate reform legislation (Sarbanes-Oxley Act, or
SOX Act) aimed at strengthening internal controls and the
independence of auditors with regard to fi nancial reporting
and imposing stricter codes of conduct, was enacted in
the United States in response to accounting scandals such
as those involving Enron and WorldCom. Now the term
“internal controls” appears widely in newspapers and other
media due to the impending enforcement in Japan of the
Financial Instruments and Exchanges Law ( Japanese
version of the Sarbanes-Oxley Act) in April 2008.
The law will require representatives of listed companies
to report evaluations of the effectiveness of internal controls
related to financial reporting, and auditors to state whether
the representative’s reports are valid. In order to fulfill these
obligations, companies will have to document all processes
related to fi nancial reporting and demonstrate that systems are
in place within the organization to prevent fraud and errors.
As a result, companies are crying out for help as they
realize procedures relating to fi nancial reporting encompass
nearly all the processes a company undertakes and that
documentation, which is central to establishing internal
controls, is an enormous task. While it is paramount that
internal controls be established, at the same time it is also
true that the workload and cost are overwhelming.
Internal controls as viewed by Fuji XeroxIn December 2005, Fuji Xerox set up a Project of
Internal Control Process for Financial Reporting under
Haruhiko Yoshida, executive vice president and director.
“Setting up internal controls is not an easy task,”
“You’re missing the point if you set up internal controls just to comply with a law that will be passed,” Kenjiro Takahashi says.
explains Kenjiro Takahashi, staff manager, Accounting
Department, who is responsible for the practical aspects of
the project. “But you’re missing the point if you are do it
just to comply with a law that will be passed. We set up this
project to position the establishment of internal controls as a
companywide activity aimed at enhancing corporate value,
and at the same time, to build a business model for services
centered on internal controls.”
The main feature of Fuji Xerox’s internal controls is to
establish it as an initiative aimed at enhancing the quality of
management to boost corporate value, while designating it
as a path to a new business model.
The e-RM concept for information management put forth
by Fuji Xerox last year holds the key. The e-RM platform is
the amalgamation of hardware, software and services that link
information based on analog technology (paper) and digital
technology (electronic), enabling unified management and
synergistic use of documents in various forms.
The plat form a l lows , for e xample , integ rated
management of basic documentation in-house and “evidence”
Fuji Xerox Sustainability Report 2006 11
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Doc
umen
tatio
n
Bas
ic p
olic
y
Eva
luat
ion/
Imp
rove
men
t
Op
erat
ion
Test
ing
Process description Process fl ow diagramDivision of duties tableRisk/control matrix
Establishment of internal controls begins with documentation to identify the status of current work processes. Processes visualized through documentation are then evaluated and improved before being put into operation and tested. The evaluation and improvement cycle is implemented on a continual basis.
“Documentation quality determines whether or not the document can be utilized as knowledge,” Naoki Kabaya explains.
Process of establishing internal controls
Insight obtained from an in-house project
The Internal Controls Project Management Off ice
(PMO) is cent ra l to advanc ing Fuji Xerox ’s ow n
establ ishment of internal controls. The department
was set up to focus entirely on smooth and consistent
implementation of the companywide project.
Establishment of internal controls, after the formulation
of an implementation plan (schedule) for the entire
Four basic documents for visualizing work processes
project, begins with documentation in order to identify
the particular status of current work processes. The
documentation step involves the creation of four basic
documents: process description, risk/control matrix, division
of duties table, and process fl ow diagram. The aim here is to
visualize work processes.
At Fuji Xerox, some 87 processes related to f inancial
reporting were documented, and extensive know-how has
been accumulated from the insight obtained through these
documentation processes.
“The task of documenting processes for each division
was carried out by a large number of people, which
meant there was a lot of variations at f irst in the quality
of the documents produced,” reca l ls Naoki Kabaya,
project manager, Internal Controls PMO. “After onsite
documentation, team specialists had to conduct a review to
standardize and ensure the quality of the documents.”
“It struck us that we would need a dedicated system if
we were going to implement and manage the actual internal
documents from other sources. Until recently, information on
company computers had been stored separately from quotes,
receipts for goods or payment, invoices, and other documents
received from external sources, and establishing a link among
the various pieces of data was an extremely daunting task.
e-RM overcomes the operational limitations brought about by
these technical obstacles. Fuji Xerox is basing its service, which
assists in establishing, maintaining and operating internal
controls, on this e-RM platform.
Fuji Xerox Sustainability Report 2006 12
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Apeos PEMasterA software product that provides assistance for al l aspects in establ ishing and operating i n t e r n a l c o n t r o l s . I t i s u s e d f o r u n i f i e d management on a consol idated basis of a l l related documents.
ApeosPortA mul t i funct ion dev ice used to conver t paper documents eas i ly in to e lect ron ic f o r m . I t o f f e r s p o w e r f u l s u p p o r t f o r integrat ion of ev idence documents into backbone systems.
ArcSuiteAn integrated document management system contain ing funct ions, such as electronic signatures and time stamps, for preventing document falsification and certifying document originality.
e-RM products & services
Possibilities after establishing internal controls
“Complying with the Japanese SOX Act is just one
milestone,” Kabaya says, who already has his sights fixed
beyond internal controls. “Internal controls is a starting
point, although I believe it has the potential to lead to the
optimization of work processes, organizational redesign, and
consequently work style transformation through improved
productivity. Fraud does not occur in organizations where
workers are highly productive and motivated. Put simply, we
have set high goals for our internal controls project––we want
an organization that can simultaneously achieve stronger
controls and create knowledge and new work styles.”
Fuji Xerox’s challenge to “build an environment for the
creation and effective utilization of knowledge,” as declared
in its Mission Statement, never ends.
Fuji Xerox developed Apeos PEMaster internal controls
assistance software by integrating the experience built up
through the implementation of this in-house project as well
as document-related technology and knowledge management
know-how developed over the years. This tool not only allows
easy creation of the four basic documents just by filling in
the details, but it can also be used to gain an overview of
managerial resources at a consolidated level, to manage project
progress, and to centrally manage related documentation, such
as evidence directly associated with fi gures for fi nancial reports.
“By applying the document structuring technology we
have acquired so far and the attributes of XML (Extensible
Markup Language), we have simplified the creation of the
four basic documents,” Kabaya says. “Users, as long as they are
aware of the work processes within their division, are able to
operate the system without any complex technical expertise or
prior training. The objective is to assist in the promotion and
thorough establishment of internal controls by minimizing
the burden on frontline staff. This is accomplished through
an interface and automatic documentation functions that are
easy for anyone to understand and use.”
Fuji Xerox services for assisting internal controls
In addition to the newly developed Apeos PEMaster, the
e-RM platform, which assists with knowledge management,
comprises ApeosPort (a multifunction device the company
has developed to link mission-critical systems and paper
“evidence”) and the lineup of products and services based on
ArcSuite (a document management system in compliance
with the e-Document Law). The plan is to extend the
application of e-RM as a platform beyond fi nancial reporting
to include other aspects of internal controls such as legal
compliance, environmental and product safety, protection of
privacy, and response to emergencies.
controls project eff iciently,” Kabaya says. “Therefore, we
decided to forge ahead with the development of software for
unifi ed management on a consolidated basis of work process
documentation and evidence documents—a system that
could be used by anyone.”
Fuji Xerox Sustainability Report 2006 13
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Compliance Is More Than Just Formal MeasuresCompliance is commonly interpreted to mean observing the law. Fuji Xerox, however, views compliance differently. Fuji
Xerox espouses that compliance represents corporate quality. The Compliance Action Meeting, a gathering of compliance
offi cers from overseas subsidiaries, refl ects Fuji Xerox’s stance on compliance.
Fuji Xerox Sustainability Report 2006 14
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Enterprising legal personnel travel from afar to meet
Fourteen Fuji Xerox in-house attorneys and legal affairs
managers from 11 countries and territories in the Asia-Pacifi c
region gathered in April 2006 in Tokyo. They came to attend
the Legal Managers Meeting and the Compliance Action
Meeting held sequentially. In 2005, the International Business
Group launched these meetings as international conferences in
which both Fuji Xerox and its affi liates participate. The main
topics of this year’s Compliance Action Meeting were reviews of
each company’s compliance management systems and exchanges
of ideas and opinions on current circumstances and issues.
Underlying the creation of the Compliance Action Meeting
was the interest in how to make internal control systems for
compliance more visible on a consolidated basis.
“Saying that we were unaware of conditions simply because
they took place overseas was no longer an option,” says Koichi
Tsukamoto, general manager, Legal Department. “In order to
respond in a timely manner to the needs of the international
community, it is necessary for headquarters to seriously consider
the extent of monitoring required as well as to develop clear
policies for both domestic and overseas entities.”
Fuji Xerox’s compliance activitiesFuji Xerox first implemented activities to reinforce employee
compliance by issuing the “Employee Action Guidelines” in 1988.
The Company had experienced some violations of societal rules,
including excessive entertainment of public servants and unauthorized
use of intellectual property. In response, senior management handed
down rigorous directives, and the Guidelines were presented to all
Fuji Xerox employees as the Company’s fi rst Code of Ethics. At the
time, the term “corporate ethics” had yet to come into wide use.
During the post-bubble economic downturn of the late 1990s,
numerous scandals involving major corporations came to light,
resulting in increased calls for stricter regulations governing
corporate activities. In the meantime, Fuji Xerox embarked on
companywide development of systems designed to establish
compliance within the Company, including the creation of the
Corporate Ethics Committee (currently the Risk & Ethics
Committee), comprehensive reform of the Code of Conduct, and
the establishment of the Corporate Ethics Consultation Desk
(currently the Corporate Ethics Helpline). It also issued a Business
Ethics Guidebook for subsidiaries in the Asia-Pacif ic region
in 2000. As a result of these activities, Fuji Xerox has received
numerous commendations, including the 2002 Corporate Ethics
Award sponsored by Asahi Shimbun Foundation.
Fuji Xerox’s compliance system
Dom
estic business sites
Overseas b
usiness sites
Ethics and ComplianceManagement Guidelines
Ethics and Compliance Conference
Objective, role and responsibilities
Auditing and correction
Managementtools
Disseminationof informationand education
Monitoring
Crisis management andinformation disclosures
Raising issues andinternal reporting
• Businessprocess rules
• Guidelines
• Regulatory training• Prevention of
improper conduct
• Employment system• Specialized
departments
Something is still lackingThese activities seemed to make way for smooth sailing, but
compliance offi cers still felt a sense of uneasiness. They believed
that simply creating systems and formulating regulations would
not be suff icient to respond to the demands of consolidated
internal controls that were expected to come into effect in the near
future. They proposed to management that the Company proceed
to the next stage of developing a management system.
“We fi rst set a goal of developing a system that could fulfi ll
our responsibilities to disclose information,” says Yujiro Sasamoto,
compliance off icer, at the time (currently assigned to the
Corporate Social Responsibility Department). “It is meaningless,
however, to simply develop policies and procedures designed
to comply with the law. I believe that it is necessary to develop
systems that enable executives and employees to focus on their
work with a sense of security as well as support corporate quality.”
As a result, Fuji Xerox began activities to incorporate
legal compliance assurance policies into internal organizations
and operations in 2002. Fuji Xerox implemented a number of
comprehensive measures that also covered subsidiaries in Japan,
including the formation of an Ethics and Compliance Conference
with the presidents of subsidiaries as members, formulation of
Ethics and Compliance Guidelines, implementation of guidelines
addressing individual issues, incorporation of compliance matters
into internal audit checklists, and comprehensive employee
training on applicable laws.
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Meeting Dates Location Agenda
First April 21-22, 2005 SingaporeDiscussion of objectives, goals, and procedures
Second April 20-21, 2006 TokyoProgress reports and sharing of issues
Third2007 (dates and location are undecided)
Monitoring reports and sharing of issues
Prior actions and future plans of the Compliance Action Meeting
Shareholders and society entrust corporations to executives and employees
Among these measures, the disc losure of the Ethics
and Compliance Management Guidelines, which provides a
conceptual diagram of compliance systems, on Fuji Xerox’s
offi cial Web site draws one’s attention.
“A corporation does not belong solely to its executives and
employees,” Sasamoto explains. “We had the belief that our
responsibility was to explain the key elements of our policies and
procedures through which we manage and operate the company
that has been entrusted to us by the shareholders and society.
Some within the Company resisted the public disclosure
of internal regulations. However, Sasamoto convinced them
with the argument that unless efforts are also made to gain the
understanding and acceptance of society, implementing internal
controls would be meaningless. It goes without saying that legal
violations by a company and its employees during the course of
their work cannot be tolerated. At the same time, Fuji Xerox’s
policy is to operate openly and fairly without concealing its actions.
Expanding compliance measures to overseas sites
of information on best practices. The ultimate aim is to prepare
policies and procedures shared throughout the region, which
are acceptable and convincing to employees in all countries and
regions. In conjunction with this, the meeting has promoted
the standardization of communication rules, including risk
information, on a consolidated basis for the entire group.
Experts who are in daily contact with the front line are the ones
most familiar with the true risks. Experienced experts from each
company can gain a solid appreciation of issues common to all group
companies by understanding the differences in circumstances among the
various companies, while at the same time respecting those differences.
“Although laws are the same throughout society, how those
laws are observed may differ depending on each company’s
values. The fi rst objective of the Compliance Action Meeting is
to share such values among all group companies,” says Kazuhiro
Abe, general manager, Legal Department International Business
Group, the organization that hosts the meeting.
From opposition to empathy
The or ig ina l objec t ive was to c reate a consol idated
management system, and from the very outset the plan was to
expand it to Fuji Xerox’s subsidiaries in 11 countries and regions.
Contents of laws and the status of their enforcement, however,
vary tremendously from country to country. There are countries
where legal systems are comprehensive and paramount, but there
are also countries where non-legal rules, such as cultural norms
and practices, carry significant weight. Headquarters could not
simply issue the same policies and procedures for all subsidiaries
to implement. Because of this, the Company decided in 2005 to
create the Compliance Action Meeting.
The Meeting has three objectives. First is sharing controls
and monitoring topics related to compliance. Second is conducting
internal inspections of the management system of each company
and reconstructing those systems. Third covers the exchange
The target of actions in FY2005 and FY2006 is to complete
the fi rst round of the PDCA (Plan, Do, Check and Action) cycle.
To accomplish this, Fuji Xerox’s Legal Department conducted
research on the corporate, environmental, human resources,
and labor laws and import-export regulations of each country,
thus ascertaining issues concerning the current status of each
company’s compliance systems. This resulted in the proposal and
implementation of management reinforcement measures as well as
the creation of links to consolidated auditing structures.
Fuji Xerox’s overseas affi liates are all joint ventures established
with leading local companies or entities transferred from Xerox
Corporation of the United States, with the exception of the
production sites in southern China. Each company implements
appropriate compliance measures based on its unique social
conditions and management principles. Given this, expectations
“The objective of the Meeting is to develop shared Fuji Xerox values,” Kazuhiro Abe says.
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were that some might view the implementation of these measures
as an unwelcome burden.
Even today, the opinions of members of the meeting are by
no means unanimous. Members have repeatedly expressed doubts
whether this huge, burdensome process would generate valuable
results. With repeated meetings, however, the mood has shifted
from opposition to empathy.
“Some members have said that by thoroughly implementing
basic work processes, issues that were initially not apparent became
visible,” Abe says. “Clashing with management teams and sales
divisions is a diffi cult and isolating job, and members have acquired
considerable psychological support by creating a network of experts
across companies’ boundaries. I have repeatedly explained the
importance of the Compliance Action Meeting to the presidents of
affi liates, and as a result, I have gained understanding on their part.
Senior management has shown an extremely cooperative stance,
and the members are now able to operate in an effi cient manner.”
Compliance refl ects the quality of a corporation
It is often said that proper compliance is a matter of course.
However, compliance is easier said than done.
Compliance is extremely important for Fuji Xerox to
implement good governance and to be a “strong,
kind, and interesting” company. Participating in
these meetings, which are focused on governance
and legal issues, has been extremely meaningful in
helping me to share information and fi nd clues for
solving problems. In addition, I've become familiar
with the legal affairs managers of other group
companies, and I'm able to consult with them
on new legal issues that come up after returning
to my home country by simply making a phone
call, which has also been extremely beneficial.
To give an example, discussions with another
member were extremely useful in determining how
to deal with the situation when an applicant for
recruitment has a criminal record.
By participating in these meetings, I learned
about the different circumstances in various
countries. Also, newly established companies
face a number of legal issues, but my company
has been operating for 40 years and has
experience in resolving similar issues. I was
very happy to be able to share know-how
and the like. Laws are frequently revised in
Malaysia, and responding to the Japanese
version of the Sarbanes-Oxley Act will also be
a diffi cult issue. I hope to fi nd hints concerning
those responses through these meetings.
In the past year, Fuji Xerox Korea has worked
with the International Business Group to create
an internal control system for legal compliance
on a pilot basis. The result has been the
discovery of a range of different issues. One
particularly important issue for the company
is investigating methods for providing services
that incorporate adequate information security.
Several months ago, the International Business
Group installed legal affairs groupware for use
by the legal affairs personnel of each country. I
hope that through this installation the method
of sharing information relevant to information
security will become more concrete at my
company.
Fuji Xerox Australia Pty Ltd.
Ramsay Moodie
Fuji Xerox Asia Pacifi c Pte Ltd(Malaysia)
Pakkia L. Palaniappan
Fuji Xerox Korea Co., Ltd.
Jung, Jaeouk
Comments from Compliance Action Meeting participants
Since people manage compan ie s and do t he work ,
occasionally carelessness creeps into their activities and emotions
such as greed and fear could inf luence their conduct. Not all
employees will necessarily comply immediately even after the
rules and penalties are adopted. This is a perpetual issue for all
organizations.
There is a plaque with the following inscription hanging in
a Fuji Xerox employee training classroom: “Regulations within
freedom, freedom within regulations.”
“What hinders compliance comes down to the awareness of
every offi cer and employee,” Abe says passionately. “Obligation
and responsibility are not enough to arouse people’s emotions.
We would rather create companies in which their off icers and
employees can feel pride in the enterprise through compliance.
This is my request for operations in all countries.”
Fuji Xerox has taken the lead in introducing var ious
compliance measures. Because of this, the enhancement and
improvement of its measures have at tracted considerable
at tention. The true object ive, however, is to incorporate
compliance into awareness and work, and then link it to corporate
quality. This is a never-ending challenge.
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Becoming a Company Where Employees Can Work With EnthusiasmFuji Xerox has proactively hired female employees since its foundation and has long sought to create an environment that facilitates the employment of women, including the introduction of childcare-related systems in advance of other companies. Today, however, participation in the workforce by women has become a matter of course. In a time when increasing numbers of women continue to work following marriage and childbirth, we wanted to fi nd out if Fuji Xerox is a company where women can use their skills to the fullest and perform meaningful work. We held a stakeholder’s dialogue with outside experts and Fuji Xerox female employees to consider the employment of women and the optimal form of management that respects diversity.
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Kimiko HoriiPresident, Global Enhancement of Women’s Executive Leadership (GEWEL)After working at Japan Airlines and as an executive secretary for a foreign-affiliated company, Ms. Horii joined Avon Products, where she led a staff of 700 as head of its sales division. She is one of the founders of GEWEL, a nonprofit organization that highlights women’s issues and diversity.
Does “kindness” hinder women’s growth?Moderator: The topic of today’s discussion is “women in the
workplace.” First, I would like to ask Fuji Xerox employees what
they believe are the signifi cant issues at this time.
Kumagai: I think Fuji Xerox is a company where male and
female employees can work without discrimination. Fuji Xerox
provides special measures for female employees. Some people
take these measures to be unjustly preferential treatment, or, on
the other hand, to be discriminatory. Some employees who have
taken childcare leave say that although they feel systems that
allow women with children to continue working are adequate,
they are not yet satisfi ed with systems concerning evaluations
and promotions.
Mizutani: There are many talented women who are at the
regional sales front lines. The fact that there are few opportunities,
even for highly skilled women who are passionate about their work,
to advance to a management position or take on new jobs leads me
to believe that the awareness of male managers has not changed.
I feel that the failure to make full use of the strengths of female
employees is extremely unproductive and shortsighted.
Milestones in Fuji Xerox’s personnel-related policies
(red text indicates international developments)
Honma: There is no differentiation between men and women
in the systems in terms of the environment that facilitates work
and vitality. There are, however, differences in the way men and
women are treated. When newly hired women fresh from college
are assigned to their positions, for example, most of the managers
are men and there are often signif icant age differences, and in
some cases managers treat these women with excessive kindness
as if they were very delicate. I also think that some women take
advantage of this situation.
Looking back at my own experience of working while holding
back tears of anger during my days in sales was entirely to my
own benefit. I feel that there is a lack of awareness among both
female employees and those who work with them concerning the
importance of growing within the rigors of work.
Hiromori: There is a tendency for women to express their
thoughts in a straightforward manner, so they regard the efforts
toward consensus-building prior to decision making as a waste of
time. It may be important to take the time to make these types
of adjustments, but I think it is also necessary for companies to
evaluate results achieved toward a specifi c goal.
Kanai: My own experience was that when I moved into a
management position, I became keenly aware that until then I had
not been viewing my own job from a management perspective. The
way we work varies depending on whether we have an awareness
that in the future we may be working in a managerial position
and whether we are mentally prepared for it. I think there is a
difference between the awareness of men and women on this point.
Accepting dif ferent cu lt ures can determine a company’s futureModerator: Fuji Xerox has worked to create systems and an
environment that encourages women to continue working after
marriage and childbirth. But a number of issues have been
pointed out. For example, when evaluating their subordinates for
promotions, male managers subconsciously treat male and female
subordinates differently. Excessively kind treatment toward women
is also included in this perspective. On the other hand, there are
FY Event
1962 Fuji Xerox Co., Ltd. established
1963 Hiring of women graduates of four-year colleges begins
1985 Disparate pay scales for men and women eliminated
1986 Equal Employment Opportunity Law comes into effect
1988
New Work Way introducedChildcare leave system introducedSystem for re-employment of employees who leave work for childcare introducedHalf-day paid vacation time system introducedFlextime system introducedFemale employees sent on overseas trainingTalknade (open forum) held
1989 Ladies Personnel Committee held
1990Second Ladies Personnel Committee heldFamily healthcare leave system introducedRefreshment leave introduced
1993System of shortened working hours for family healthcare introducedOne-day healthcare leave system introduced
1995 Quota for male and female employees when hiring eliminated
1997Sexual Harassment Prevention Hotline createdFuji Xerox wins Minister of International Trade and Industry Corporate Comfort Prize (second time since 1996)
1998Average length of employment of female employees exceeds 10 years
1999Revised Equal Employment Opportunity Law comes into effectNew personnel system introduced
2001 Fuji Xerox wins Corporate Social Contribution Grand Prize
2002Fuji Xerox wins Health, Labour and Welfare Minister’s Prize for Excellence in the Family Friendly Corporation Awards
2003 Childcare-related systems revised
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Kazuyo KatsumaVice President and Senior Analyst, Japanese Equity Research, JP Morgan SecuritiesMs. Katsuma has presided over Field of Mugi, an Internet community for working mothers, since 1997. She was selected as one of “50 Women to Watch” by the Wall Street Journal. Ms. Katsuma is the mother of three.
Yumiko NagaiExecutive Director and General Manager in charge of Personnel and General Affairs, Hermès JaponMs. Nagai began working for Fuji Xerox in 1981, where she held sales and personnel positions. After leaving the company in 2000 to work as the head of the human resources division at a foreign-affiliated company, she assumed her current position at Hermès Japon.
situations where women take advantage of such treatment, leading
to differences in personal growth. Now I would like to hear the
perspectives of the outside experts regarding these issues.
Katsuma: From the company’s perspective, the key is to
uncover the benefi ts of employing women. For example, if women
comprise 30 percent or more of the company’s workforce, women’s
perspectives are more likely to be adopted. Business cannot be
performed if women are ignored; therefore, listening to their
opinions is of vital important to management. In Fuji Xerox’s case,
where women comprise about 10 percent of the workforce, if in an
extreme case, business was performed even while ignoring women,
the situation would not change unless management put forth clear
policies on why female employees are necessary.
Nagai: From a statistical point of view, it seems that there are
differences between men and women in work styles and ways of
thinking. For example, women have a tendency to do things in a
straightforward manner and prefer fl at organizations. In a company
where men make up 90 percent of the workforce, there is tendency
to think that since women’s work styles are different from those of
men they are unacceptable. Rather than focusing on whether values
and styles are the same or different, I believe that it is necessary to
defi ne clearly the employee skills that Fuji Xerox requires.
Horii: Differences between the styles of men and women have
been mentioned, and recently diversity has become a keyword
among many foreign-affiliated companies. They feel a sense of
urgency because they are concerned that if they do not recognize
the potential of each person and create an environment where
everyone can work with enthusiasm, they will not be able to attract
the highly skilled human resources that they need. Considering
this, is there an atmosphere within Fuji Xerox today of a willingness
to listen to opinions that are extremely different from the previous
corporate culture and internal conventional wisdom?
Hiromori: I think that in my division and throughout the company
there are people with a broad range of different ways of thinking,
but I also believe that their sensibilities and ideas are not being
fully leveraged. Currently, safe ways of performing work that will
produce short-term results are emphasized, but I think we need to
place much more importance on working hard to achieve originality
and ingenuity in addressing issues from a long-term perspective.
Ohta: I think that there is a strong tendency to avoid risks rather
than just taking steps forward proactively. For example, in order
to implement a plan, meeting after meeting is held and matters
in one’s own area of expertise are examined in extreme detail.
There are more than a few nonconformists, but given this type of
environment there seems to be cases where employees hesitate and
hold back their ideas.
Kanai: If we’re talking about the perspective of others and of the
company, rather than just one’s own perspective, I believe that
this is a company that listens to one’s opinions. In this sense, to a
certain extent the situation depends on each person.
Horii: In the future, Fuji Xerox will shift even further toward
services and will continue to globalize. To promote these types
of changes in business, we need new ideas that are different from
those of the past. At that time, the company’s future development
will depend on whether Fuji Xerox will be able to reinvigorate its
organization by making full use of the opinions of individuals with
values and cultures that are different from those of the people who
have supported the corporate culture until now, including not only
women but also younger employees and foreign employees.
Putting a hidden agenda on the tableModerator: With respect to the extreme importance for the
survival of Fuji Xerox of making full use of employees with
different perspectives, such as women and younger employees,
what measures do you think the company should take?
Katsuma: The fi rst thing that needs to be done is to make the
issue visible. One manager said to me, “Problems are usually
hidden, but we need to bring them out into the open. Once this
is done, those who want to solve them will step forward, and you
can leave it to them.” I think it would be benefi cial to have more
discussions like the one today. It doesn’t have to be an off icial
forum––Fuji Xerox could create a chat site for female employees
on the intranet or hold an event or some other venue to exchange
information and facilitate networking among women.
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Nagai: Earlier, there was some discussion of overly kind managers,
and in that regard, some managers treat female subordinates in
what they think is a kind way, trying to protect them because they
have families or whatnot, but in the end, this can lead to fewer
opportunities to perform the kind of work that leads to personal
growth. Instead of making judgments based on their own values,
managers need to change their own way of thinking to eliminate fi xed
preconceptions, such as confirming with the employee whether she
can do a particular job and encouraging her to take on new challenges.
Also, the issue of numbers is critical. This is not something that
can be resolved in the short term, but as the baby-boomer generation
reaches retirement age, the personnel makeup wil l change
drastically, and Fuji Xerox will have a chance to make changes to its
organization. I think the company needs to create a 10-year plan.
Horii: The most important thing is for top management to express
its commitment to how the capabilities of female employees will
be used. Without specific declarations to the effect that women
will be used to achieve certain goals and that women will comprise
a certain percentage of the workforce including management
positions, it will be diff icult to effect any real change in the
organization as a whole. It is precisely for this reason that I would
like to see management express a clear vision for the future and to
make specific commitments. I would encourage management to
meet once every year to discuss this issue.
Katsuma: In order to truly consider how women can be used in
the workplace, it is not enough to throw out vague notions like
“using women in the workplace.” It is important to set specif ic
targets to measure progress and then create a system of certain
rewards and penalties based on individual progress so that
employees who perform well are commended and those who do not
are in some way subject to some penalty.
Horii: As a f inal comment, I would like to say that women
should not expect everything from the company. They need to
demonstrate what kind of a person they want to be and what they
can do, and then consider what they can do for the company.
I would like women to create win-win relationships with the
company that results in the growth of both parties.
Moderator: Our topic today has been women in the workplace.
I think we can conclude that mutual respect for different values and
cultures, the ability to express one’s opinions freely, the expectation
from fellow workers and managers that each employee can develop
and grow, and the ability to engage in meaningful work are what
make a “good company,” not just for women but for all employees.
I think that I speak on behalf of all of today’s participants when I
say that it is our hope that this stakeholder dialogue will serve to
bring Fuji Xerox closer to becoming such a “good company,” even
if only in a small way. Thank you very much.
Prologue to the stakeholder’s dialogue
Kyoko KanaiIntegrated Services Sales 1, Major Accounts
Since its foundation, Fuji Xerox has been committed to employing women in
meaningful positions and has held itself out as adopting progressive personnel systems
and work styles. Business environments are changing rapidly, and Fuji Xerox is aware
that as a societal presence, respecting and ensuring diversity is once again a crucial
issue for maintaining growth while raising global competitiveness.
As the company works to develop its environment in a new era, I would like all
female employees to polish their skills. I would be very pleased if the result is enhanced
employability and personal growth, and the employees feel that their work is “interesting.”Takeshi Hibiya
Corporate Vice President and General Manager, Corporate Human Resources
Fuji Xerox Co., Ltd.
Diversity and opportunity Equal employment opportunitiesFor details, see our Web site.
Keiko MizutaniFuji Xerox Osaka
Kaori OhtaMarketing, Office Product Business Group
Nakako HonmaCorporate Human Resources
Junko HiromoriSales Planning, Sales & Marketing
Naoko KumagaiService Solutions, System Engineering Department
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Becoming a Company That Is Truly Rooted in Chinese Society
Whether you happen to be in Japan or in China, it is the people inside a corporation who change it. However, cultures differ
from country to country, and the challenges working people face also differ. To make itself “strong,” “kind” and “interesting,”
Fuji Xerox continues to push ahead with business activities around the world, while constantly concerning itself with what is
really required to establish roots in each region as a “good company.”
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A “strong” and “kind” plantIn 1995, Fuji Xerox set up a production site in Shenzhen,
signaling the start of the Company’s production shift to China.
Later, in FY2005, the Ebina Plant, which had been the company’s
fl agship production site in Japan, withdrew from production and
in FY2006 began transferring many related functions to Shenzhen
and Shanghai. As a result, nearly 80 percent of the products
sold by Fuji Xerox and its affiliates are now produced in China.
“We started out producing black-and-white machines
fo r e x p or t , but s i nce 2 0 0 4 we have cove red t he f u l l
l ineup, inc lud ing color mach ines , med ium- and h igh-
speed machines, and we make a l l the new products here,
too,” says Masaak i Inagak i, genera l manager,* who has
spearheaded production at the Shenzhen Plant since 2001.
The Shenzhen Plant has already grown into the largest
production site in Fuji Xerox; but size is not every thing,
and the plant must now focus on becoming a “s t rong”
production center. Here are Inagaki’s ideas for achieving this.
“All copy machine manufacturers have f locked to southern
China, so their suppliers have gathered there as well,” Inagaki
says. “We want to achieve the best in the world in terms of
quality, cost and delivery (QCD) and our capability is actually
improving. I feel our plant is almost on a par with those in
Japan in that respect. The market expects high QCD, so
other attributes are required in order to differentiate ourselves.
When I f irst came to Shenzhen, I immediately thought that
one such attribute is our environmental response, and I eagerly
set about implementing environmental related activ it ies.”
“It is important that employees feel a sense of satisfaction from working at the company,” Masaaki Inagaki says.
Profi le: Fuji Xerox Shenzhen Plant
The benefi ts of such environmental management efforts began
to surface, and in May 2005, the Chinese government certified
the Shenzhen Plant as an environment friendly corporation.
“ We w o u l d l i k e t o l i v e u p t h a t t i t l e , s o w e a r e
cooperating with the Shenzhen city government, not just
on env i ronmenta l mat ter s , but a l so for the e x pansion
of our socia l contr ibution act iv it ies,” Inagak i continues.
The Shenzhen Plant has seen its public reputation as a
friend of the community improve based on its spirited social
contribution activities, but what is the view from within?
“Recently I have come to believe that it all comes down to
people,” Inagaki responds in a straightforward manner. “Employees
have to be able to feel a sense of satisfaction from working at the
Company. Therefore, we are making even greater efforts in areas
concerning personnel, such as occupational health and safety.”
*General Manager: a position equivalent to a president
Name Fuji Xerox of Shenzhen Limited
Established June 1995
Capital US$38 million (Fuji Xerox: 90%;
Fuji Xerox China: 10%)
Total investment US$59 million
Development, design, production,
sales and post-sales service
for printers, copy machines,
multifunction devices (printers,
fax machines, scanners, copy
machines), consumable units
and related parts
Employees 3,945 workers, including 414
administrative personnel and 39
Japanese expatriates
(as of March 31, 2006)
Scope of operations
Fuji Xerox Sustainability Report 2006 23
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Questionnaire: Communication Training Program at Shenzhen Plant
What are employees’ expectations?
“We look at whether employees feel that their jobs are
rewarding,” says Wang Yan, in charge of occupational safety
in the Environmental Safety Department. “How can we get
them to enjoy their jobs even more? I have even discussed
initiatives regarding this with an NGO dedicated to this
kind of activity.”
The NGO, the Institute of Contemporary Observation
(ICO), based in Shenzhen, conducted a trial training
program on communication and human relations for 220
of the nearly 4,000 workers at the plant. The program
uncovered some unexpected results.
“Shenzhen Plant offers good labor conditions, we
thought, and has a relatively good working environment,”
said ICO’s Chen Jianhua, who ran the program. “However,
we did find that many employees who participated in the
program had emotional or psychological stress, which is by
no means unique to Fuji Xerox’s Shenzhen Plant. The same
tendency can be seen at any company in plants where young
people work.”
This is not all that surprising. These are all young
teenagers just out of school, who have made the journey to
the big city from their small provincial towns and villages.
Despite belonging to the same generation, they all come
from different areas. It would be even more surprising if
they did not feel out of place. Some are appointed group
leaders in charge of 20 workers after just a few years, just
as they are going on 20 years of age, even though they fi nd
themselves at a loss of what to do. How should they go
about directing others? Besides, they never learned at school
or at work about how to communicate effectively or how to
facilitate human relations.
“The training program was very benef icial,” says
an excited 19 year-old employee from Hunan Province.
“I learned that I can’t convey my ideas to other people
without making the effort to talk to them. I realized how
self-centered I had been, getting upset about people not
understanding me when I hadn’t even made the effort to
talk. I have more friends now that I can communicate
smoothly. Since the program, I have also tried hard to listen
to what others have to say. Now I can truly say that I have
made the transformation from a student to a working adult.”
The trial training program received high marks from all
participants, and the workers’ greater understanding about
communication has had real benefi ts for supervisors as well,
such as facilitating the communication of instructions and
encouraging discussions about non-work matters.
ICO’s Chen Jianhua says young employees have emotional stress.
Shenzhen Plant employees who attended the course on communication.
Communicationobstacles
Unable to speak when there are many people aroundFeel a sense of inferiorityFeel a lack of language skills
74respondents
37%
Emotionalproblems
Would like a friend to talk to or someone to provide encouragementInteracting with friends of the opposite sexFeel loneliness from being separated from home and friends
38respondents
19%
Relationshipswith colleagues
Relationship with one's supervisor Supervisor is not fair
Problem between new and old employeesRelationships with colleagues from different areas
27respondents
14%
Other problemsNo distinct problems, but feel psychologically unstable. Sometimes need guidance. Strongly wish for more courses of a similar kind.
61respondents
30%
Total 200respondents
Are you experiencing any problems psychologicallyin day-to-day life or at work?
Fuji Xerox Sustainability Report 2006 24
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Aiming to be a “strong,” “kind” and “interesting” company in China
China’s labor capability is currently going through enormous
change at a time when the children born under that nation’s
“one-child policy,” which began in 1979, are starting to enter the
workforce. Among the young migrant workers who have never
known hunger or experienced the physical labor of agricultural
communities, and who are now starting to work at plants in the
cities, a new type of employee is steadily developing who, rather
than a higher salary, desires a workplace that offers job satisfaction.
“Of course salaries are important,” asserts Lu Jianguo, leader
of the employee volunteer organization, Smile Service Team. “But
having the company you work for be accepted by society is also
important. There is a strong individual awareness of one’s own
growth, which naturally means there are more people who want
the company to provide good educational opportunities.”
The “sense of satisfaction from working at the Company” that
Inagaki, general manager, talks about will perhaps be attained by
meeting these kinds of employee needs.
Fuji Xerox aims to be a “good company” by combining the
three attributes of being “strong,” “kind” and “interesting.” Applied
to Shenzhen Plant, “strong” refers to its corporate competitiveness;
the Company’s local reputation as a “kind” company is growing
as it actively contributes to environmental and social activities
advanced by Shenzhen City; and in order for employees to view
their jobs as “interesting,” the plant is venturing beyond technical
training to provide education for the development of essential
skills, such as communication.
The hope is that these kinds of in-house and external
initiatives will in the future spread to suppliers, as well as to society
as a whole in southern China. Fuji Xerox will have truly rooted
itself in the region once the Company’s ideas and actions have
touched the immediate vicinity and beyond.
The training program was so well received that 99 percent
of the participants had a posit ive v iew of its results, and
Shenzhen Plant made the decision to join ICO in implementing
communication training for the roughly 4,000 workers at the plant
during 2006.
“This training will be provided not only to the roughly
2,500 regular employees, but also to all of the 1,500 temporary
employees,” Keitaro Sonoguchi, CSR Promotion Off icer (of
the CSR Promotion Off ice established in April 2006) said
enthusiastically. “The general belief is that people should be
treated the same for doing the same work, and all employees
require communication skills. A lot of people have also been saying
that group leaders need this kind of education the most since they
band employees on the line together. Therefore, next I would like
to provide group leaders with management training.”
Japanese corporations naturally began expanding into China
in the 1990s because of the attractiveness of low-cost labor. But
Wang Yan explaining the signifi cance of employee training.
Serving with a smile––the Smile Service Team
The Smile Service Team was formed in
February 2006 to carry out organized volunteer
activities. Many employees have shown interest
in participating, but the number has been limited
to 50 to begin with since it aims to expand
after a sound foundation has been put in place.
Activities include joining Shenzhen City in caring
for children with disabilities at welfare centers
and participating in the city’s tree-planting
activities, as well as pursuing independent
activities, such as making donations to the
university’s drama festival and campaigning for
water conservation at department stores. Activities
are reported to all employees via a newsletter.
“ In the future, I would l ike to go out to
economically less fortunate regions and provide
the assistance they really need,” says Zhu Min,
chief secretary of the Smile Service Team, as she
shares her dream.
Zhu MinSmile Service Team Chief Secretary
Fuji Xerox Sustainability Report 2006 25
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Toward a Sustainable Model for Paper Procurement
Paper has become a daily essential. Unfortunately, to supply paper inexpensively, areas of natural tropical rainforest are
being illegally felled, continuing the destruction of vast tracts of our precious natural environment. The paper we so
routinely use without much thought could very well have been made at the sacrifi ce of natural forestland. What can we do to
both protect our natural environment and allow the use of paper to continue?
Enforcing paper procurement requirements
Fuji Xerox has been carrying out initiatives targeting
sustainable paper supply for some time. In Japan, the company
embarked on its Eco-Conscious Pulp Plan together with Fuji
Xerox Offi ce Supply in 2002. The objective is to use only “eco-
conscious pulp” (used paper pulp or virgin pulp from properly
managed sustainable forests) as raw material for copy paper.
This goal should be attained by 2008.
The paper issue, however, is a global environmental issue.
Solutions must be found not only in Japan, but also throughout
the world for them to have any signifi cance. With that in mind,
Fuji Xerox established the Environmental, Health and Safety
Requirements for Paper Procurement in December 2004.*1
Based on these requirements, which govern paper procured
by Fuji Xerox and its affi liates in Japan and overseas, suppliers
must comply with applicable laws and codes of practice; use
pulp from properly managed sustainable forests; clarify the
source of used paper that is utilized as recycled pulp raw
materials, and so forth. The rules clearly state Fuji Xerox’s
intention to completely reject paper originating from illegally
felled natural forests.
Negotiat ions with domestic and overseas suppl iers
commenced in FY2005 in preparation for paper procurement
that conforms to these rules.
To begin with, Fuji Xerox asked its suppliers (paper
manufacturing companies) to conduct a survey for each type of
paper they handle. The objective of the survey is to determine
the ratio between virgin pulp and used paper, the type and place
of origin of virgin pulp, whether it is plantation pulp or certifi ed
eco-pulp, and whether non-chlorine bleaching. At the end of the
survey, the suppliers were required to submit a written declaration
guaranteeing the content of the survey. In cases where paper
didn’t conform to the regulations, the company requested changes.
If changes were not possible, Fuji Xerox changed suppliers. Fuji
Xerox Offi ce Supply was responsible for negotiating with the fi ve
paper manufacturers in Japan, and had no trouble confirming
that the requirements had been met. Although sales companies
engaging in mail-order sales of offi ce supplies were found to be
stocking some non-compliant copy paper, sales of those products
were terminated immediately, and the plan went smoothly with
no major changes to domestic suppliers.
Overseas, however, sales companies had been selecting
Initiatives of paper-related stakeholders for a sustainable paper supply
Company/Organization FY2005 Progress
World Wide Fund for Nature Japan (WWF Japan)
Activities promoting responsible paper procurement (seminars, etc.) Activities to prevent forest destruction in Sumatra, Indonesia due to paper production Formulation of the WWF Japan Policy/Action Plan on Procurement of Forest Products
Green Purchasing Network (GPN)
Revised guidelines for print/copy paper––modifi ed to allow purchase of products that use eco-conscious virgin pulp as raw material for paper; removing the guideline “to not seek products with a very high level of whiteness when purchasing.” Revised product database based on the above guideline revisions
Oji Paper Increased the volume of imported wood chips from timber grown in plantations or certifi ed forests Expanded the area of company-owned overseas plantations Creation of raw materials traceability report
Fuji Xerox Offi ce Supply
Achieved a eco-conscious pulp content ratio of 90.8 percent for copy and other types of paper Commenced sales of a classifi ed document collection system Increased FSC-certifi ed products
Fuji Xerox
Achieved global compliance with paper procurement requirements Commenced trial of a recycling system for reuse within the company of paper it used previously Commenced trial of a recycling system for reuse within the company of paper it used previously
Fuji Xerox Sustainability Report 2006 26
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suppliers individually; therefore, the reasons for the surveys had
to be explained before an understanding could be reached.
On close examination, many of the overseas sales companies
were found to be procuring paper from paper manufacturers that
potentially could have been utilizing raw materials from illegal
harvests. This is because paper originating from illegal harvests
is inexpensive. Excluding these suppliers inevitably pushes
up the procurement cost of paper, thus impacting operational
competitiveness. Despite such losses, spreading awareness of
the importance of environmental-friendly paper procurement
to frontline sales staff has become a crucial task at the sales
companies and Fuji Xerox’s International Business Group, which
coordinated the promotion of the procurement plan overseas.
Surveys of paper manufacturing companies did not
progress very far through undertakings in individual countries,
so Fuji Xerox’s International Business Group became the
focal point for such efforts, and it set about communicating
with the various paper manufacturers. The job of selecting
suppliers to replace the roughly 25 percent that did not comply
with the requirements was not an easy one. Nevertheless,
with information put forward by Fuji Xerox Off ice Supply
and NGOs such as WWF, Fuji Xerox continued to look for
replacement suppliers who could meet the price required by the
market, and by the end of FY2005 the company succeeded in
establishing a procurement framework that was nearly in line
with the requirements. *2
Toward an era in which everyone uses environmental-friendly paper
However, the initiatives did not stop there. Conformance to the
requirements needs to be maintained, and Fuji Xerox will request
that suppliers fill out a survey and submit a written declaration
each fiscal year. Another issue that remains from FY2006 is
conformance to the requirements for paper used in catalogs and
paper items used in offi ces, such as invoices and envelopes.
Yet there is enormous signifi cance in having initiated a paper
procurement system that focuses on the legality and sustainability
and excludes paper originating from illegally felled forests.
Nowadays, more and more companies are demanding legal
compliance and products that originate from managed forests for
their paper procurement. The Green Purchasing Network (GPN)
has revised its green purchasing guidelines to recommend that
consumers use paper that is made from certified or plantation
timber. Confirmation of legal compliance has also been added
to paper purchasing standards within Japan’s Law on Promoting
Green Purchasing.
In this way, there is a growing movement in Japan toward
the elimination of illegal felling. One day, that movement will
spread to the rest of the Asia-Pacifi c region and it will become a
matter of course that everyone uses environmental-friendly paper.
Natural forests will no longer vanish due to paper production
and the abundance of nature will be preserved forever. Fuji
Xerox, working toward this day, will continue initiatives aimed
at ensuring sustainable paper procurement. *1 See “Environmental, Health and Safety Requirements for Paper Procurement” on page 50.
*2 Excluding one overseas company whose long-term purchasing agreement has yet to expire.
Praising Fuji Xerox’s approach in stemming the destruction of forests
You would naturally think that by now “compliance with laws and
codes of practice” and “identifying the source of raw materials” would
be commonplace, but these ideas are still not fully applied in industries
that consume forest products. In light of this, I think Fuji Xerox, through
its clarifi cation and steady implementation of measures that it can take
as a responsible corporate purchaser, is contributing enormously to
fi nding resolutions to environmental issues. I believe there is still plenty
of room for your company to protect biodiversity and help put the
brakes on natural forest depletion. I believe that Fuji Xerox’s efforts will
assist in the creation of an environmental-friendly society.
Yuka OzakiForest CampaignerGreenpeace Japan
Feeling proud of our advanced initiatives
I was in charge of coordinating the implementation of the paper
procurement regulations by sales companies in the Asia-Pacific
region. Getting the staff at each sales company to understand the
purpose of the surveys and then promote thorough implementation
was a tough job, to say the least. It was also quite an effort to fi nd
suppliers to replace those who had not complied, especially when
the paper in question was a special type.
These initiatives take into consideration our future by assisting in
the realization of a sustainable society. I feel extremely proud that
Fuji Xerox is leading the world in such activities.
Yvonne ZhangInternational Business GroupFuji Xerox
Fuji Xerox Sustainability Report 2006 27
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The Long Road to a Recycling-Based Production System
Fuji Xerox has been proactively implementing initiatives both in Japan and overseas to minimize new resource input when
manufacturing products as well as to achieve “zero landfi ll.” The main objective is to lower the environmental impact of a
product after it has reached the end of its useful life. Issues surfaced in FY2005 as initiatives progressed, but a bright future
is in store thanks to an onsite commitment and joint efforts with partners. Fuji Xerox’s resource recycling enters a new phase.
Looking back over resource recycling initiatives
To lessen its environmental impact, Fuji Xerox, since 1995,
has been manufacturing products in Japan that use parts from
copying machines and multifunction devices collected from
customers. Those parts, although reused, boast exactly the same
quality as new parts. In August 2000, a framework for realizing
“zero landfi ll” of end-of-life products was set up nationwide, and
since FY2003 product recycling operations have continued to
achieve profi tability, thereby striking a balance between economic
and ecological factors.
In December 2004, to raise the level of initiatives overseas to
reduce environmental impact from landfi ll to the same level as in
Japan, Fuji Xerox launched its International Resource Recycling
System, through which end-of-life products are collected from nine
countries and regions in the Asia-Pacific region and transported
to Fuji Xerox Eco-Manufacturing Co., Ltd. (FXEM) in Thailand
for disassembly and sorting. Recycling partners then participate in
transforming those products back into resources.
“We are aiming to further increase the recycling rate,” Junichi Takahashi says.
The International Resource Recycling System––one year on
The following four principles were created when the
International Resource Recycling System was established:
1) Prevent illegal disposal; 2) Do not impact the environment of
the importing country; 3) Do not import waste; and 4) Create
benefi ts for the importing country.
“Although we attained only a 99.2 percent end-of-life product
recycling rate for FY2005 compared to our original 99.6 percent
target, we did manage to operate the system based on the four
basic principles,” explains Junichi Takahashi, president, FXEM.
To prevent illegal disposal, collected end-of-life products are sent
from sales sites, together with a list indicating their weight, and
disassembled at the plant and sorted into 68 categories. Sorted
parts/materials are recycled as resources, with the aim of always
striving toward “zero landfi ll.” In addition, the weight is checked
as one step of every process to prevent illegal disposal en route. In
FY2005, nearly 20,000 end-of-life products were collected and
99.2 percent of those were recycled. In other words, more than 900
tons of landfi ll was avoided.
FXEM also obtained ISO 14001-2004 certif ication in
September 2005 for its environmental management system.
Environmental management has progressed thanks to the
certif ication, and the benef its are beginning to emerge. For
example, the company was chosen by Thailand’s Ministry of
Energy as one of the top fi ve companies in the region in terms of
energy conservation, and employee awareness has been elevated
through discussions among themselves about appropriate work
environments.
Concerted efforts based on a strong link between the nine
countries and regions, including Thailand, are crucial for the
International Resource Recycling System to operate smoothly.
With that purpose in mind, the First International Recycling
System Workshop was held in Bangkok in May 2006. Personnel
involved from sales companies in those countries and regions
gathered at the Workshop to gain an understanding of the
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Technology to pave a future for reuseFuji Xerox is confronting those diff iculties to the best of
its ability through the use of technology. The company plans
to introduce an automated diagnostics system sometime during
FY2006, which will enable the details of a part’s history to be read
and an automatically evaluated as to whether the part can be reused.
Suzuka Fuji Xerox is carrying out its own independent
activities and has developed the Repelle System, a technology that
enables 100 percent recycling of plastic materials.
“If the ‘Repelle’ idea can be incorporated into actual processes,
it will enable an advanced level of plastics recycling and we will
be able to convert used food trays, for example, into copy machine
parts,” says Tsukamoto, who has pinned high hopes on the system
and has his sights on a recycling-oriented society.
Onsite endeavors and technological development lead to the
conservation of natural resources. Fuji Xerox’s efforts in this area
are continuous and unrelenting.
Patient endeavors at production sitesFuji Xerox has pushed ahead with an overhaul of its production
sites over the past several years. With the transfer of production
sites for new products to China and the reorganization of domestic
production sites that is underway in Japan, the Integrated
Recycling System was moved to Suzuka Fuji Xerox, because it is
expected to play a vital role within the production system.
Suzuka Fuji Xerox, now the largest production site in
Japan for Fuji Xerox and its affi liates, is attempting to increase
production effi ciency.
“We have adopted TPS, or the Toyota Production System,
and our production reforms are making steady progress,” says
Takuzo Tsukamoto, president, Suzuka Fuji Xerox. Each day,
70 end-of-life machines are brought from the Logistics Center,
then they are disassembled, cleaned, sorted or repaired, and
inspected over one and a half days before reappearing as products
containing reused parts that are of exactly the same quality as
new ones. Thanks to the consolidation of logistics bases, the
lead-time from collecting and sending end-of-life products
to recycling line is now shorter and production is progressing
“It doesn’t matter where you are, our approach toward reuse doesn’t change,” Takuzo Tsukamoto says.
steadily. The current issue is raising the rate of reuse further.
“I would like to raise the reuse rate by introducing TPS
mechanisms to reused part operations as well,” Tsukamoto continues.
A crucial point for improving the rate of reuse is to increase
the accuracy in the appraisal of parts. Even with set appraisal
standards, the conditions of rust, scratches, and abrasions are not
uniform. Furthermore, appraisal by humans entails the tendency
toward “excessive quality” causing a drop in the reuse rate. When
the time came to transfer the reused part line from Ebina, six of
the employees scheduled to work on the new line underwent up
to two months of training at the Ebina Center, after which they
thoroughly communicated everything they had learned to other
employees. However, achieving a dramatic increase in the reuse
rate through such patient efforts has its diffi culties.
circumstances faced in each location and to discuss methods to
resolve various issues. Equipped with these methods, FXEM
employees have made visits to overseas sales companies after the
Workshop to investigate how they can resolve issues together.
One issue that has been clearly defi ned concerns the recycling
rate target that the company was unable to meet in FY2005.
“We made the most of the technology we cultivated in
Japan to build a recycling system with the aim of achieving ‘zero
landfi ll,’ but we haven’t met our target yet,” Takahashi says with
strong commitment. “The current issue is how to accomplish the
remaining 0.4 percent of the target. I would like to work jointly
with Fuji Xerox’s Asset Recovery Management (ARM) Unit to
pursue activities that further raise the recycling rate.”
FXEM is strengthening its technology development and
support framework by hiring new engineers as well as other
methods to improve the recycling rate.
Given this situation, initiatives aimed at lessening the impact
Fuji Xerox places on the environment are now underway in all
regions in which the company operates, with the exception of
China. The company is currently looking into ways to lower the
environmental impact of end-of-life products in China as well, which
is currently an important hub for production and sales. The effort to
build the International Resource Recycling System continues.
Fuji Xerox Sustainability Report 2006 29
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Running a “good” or “sustainable” society
requires subtle steering. The cost of short-term
expansion can be environmental destruction and
resource depletion, thereby ruining the possibilities
for future generations. Meanwhile, an overly cautious
and reserved approach can eliminate opportunities
for those living in the present. Balanced judgment,
avoiding extremes, is thus required. Given this
context, it is especially important for both enterprises
and other elements of society to deepen their
understanding of how enterprises should be, i.e.,
corporate societal responsibility or CSR. To do
so, we need greater opportunities to directly and
indirectly consider the issue of sustainability for our
planet and society, healthy societal and economic
Sustainability and society growth, and the ideal stance of enterprises within
these relations. I believe that an essential key to
fostering the development of a good society, which
is to say a sustainable society, is for society as a
whole to adopt a more wide-ranging and committed
approach to the encouragement of quality enterprises
implementing CSR.
I recently came across some very interesting
material presented from this perspective, a special
feature on the “commons” philosophy contained in
Vol.144 (2006) of the Fuji Xerox publicity magazine
Graphication. This included a dialogue between
“Togetherness” at Fuji Xerox
Yotaro KobayashiChief Corporate AdvisorFuji Xerox Co., Ltd.
Sustainability supported by the spirit of “togetherness”
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For a private fi rm seeking to maintain a suitable
level of tension between economic responsibility and
“togetherness” as the requirements of the day continue
to change, the most important thing is a strong
internal commitment to the realization of ideals
and values. Stated in opposite terms, real meaning
fi rst comes about when the people who make up an
organization view the ideals and values as their own,
feeling a strong sense of resonance and commonality.
I think that at the core of an “interesting” f irm is
a situation where employees have this attitude. In
order to keep our philosophy and values “interesting,”
I would urge everyone at our Company to consider
the “togetherness” of Fuji Xerox, to take on a sense
of ownership in this respect, and have their actions
ref lect this. The bulk of the efforts animated
by the spirit of “togetherness” presented in this
Sustainability Report were autonomously initiated
by employees who have a clear sense of ownership
and a wealth of interaction with society, and this is
precisely the stance that I have sought to encourage
in the management of the Company.
I sincerely hope that all the people who interact
with Fuji Xerox in whatever capacity will offer
their frank opinions on the extent to which the
actions of our employees are in line with our ideals.
These voices are what help us build Fuji Xerox
“togetherness,” and it would be most gratifying if
this Sustainability Report were perused and utilized
from that perspective.
economists Takeshi Murota and Masahiro Tabeta
titled “Considering the Possibilities of Commons,”
which I found extremely thought provoking and
stimulating. Tabeta referred to the 20th century as
an era of “systems for all-out struggle” that operate
through the interaction of scientif ic technology
and bureaucratic structures, due to unrestrained
market (private) expansionism and state (public)
expansionism. He also noted that this stemmed from
the breakdown of “togetherness” during the process of
modernization, which had previously served to limit
excess. As a result of this change, “private” and “public”
sectors seem to be a bit out of control. My own, rather
broad interpretation of the concept of “togetherness”
is the mindset of emphasizing those things that
everyone shares, which exists in various forms, and the
collective spirit of striving to be of use to everyone. I
think that future sustainability will be determined by
the extent that we enlarge the aspect of “togetherness.”
In reading the dialogue, I was deeply impressed
by how, instead of speaking in two-dimensional
terms of markets (private sector) and government
(public sector), “togetherness” played a pivotal role in
maintaining a balance among the three aspects.
The management of Fuji Xerox has been based
on the ideal of being a “good company” that is
simultaneously “strong,” “kind,” and “interesting.”
Our management philosophy has stressed the
consciousness of striving to benefit society (a sense
of togetherness) as something that safeguards “what
is everybody’s.” Competition across national borders
is becoming increasingly intense, and enterprises
that cannot respond to this environment will not
be able to survive. Despite this, however, I feel that
“Good company” concept and “togetherness”
Feeling “togetherness,” building “togetherness”
Fuji Xerox must never lose the spirit of being an
entity that is useful to society, and I believe that the
management of the future will continue forward
with this spirit of “togetherness.”
Fuji Xerox Sustainability Report 2006 31
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Yukio SakamotoDirectorJoban Kosan Co., Ltd.
Hiroaki YoshizawaGeneral Manager of Corporate
Social Responsibility DepartmentFuji Xerox Co., Ltd.
Yoshizawa: Please tell me about the background of establishing Joban Kosan in 1966.Sakamoto: In the early 1960s, the source of energy began to shift from coal to oil. Yutaka Nakamura, president of the company at the time, had a favorite saying––“maintain harmony with the local community”––and he was among the very fi rst to wholeheartedly adopt a policy of protecting the local economy and the lifestyles of employees and their families. The former Joban Hawaiian Center was created through his ideas and hard work. Employees and their families worked diligently on the shared belief that “if this project does not succeed, there will be no tomorrow for Joban.”Yoshizawa: Was the understanding and cooperation of local residents obtained with respect to the construction of this large-scale facility and hotel right from the outset?Sakamoto: At f irst, there was tremendous opposition from the ryokans—Japanese style inns in the Iwaki Yumoto region. The former president, Yutaka Nakamura, went to each ryokan to convince them that they could all work together to attract large numbers of visitors to the area and fi nd a path that would be mutually benefi cial to the entire region. One specif ic proposal was that we would not offer national brand foods and goods in the facilities, but instead purchase everything from local producers. By collaborating with local companies, we were also able to produce many original products.Yoshizawa: Please describe some the events that will shed light on Nakamura’s management stance of emphasizing harmony with the local
community.Sakamoto: From the very f irst year, more guests than initially anticipated came, and the hotel operated at full capacity for days on end. For some time a situation continued where overbooked guests stayed at one of the local ryokans and we simply provided the use of our leisure facilities. The sales division repeatedly requested that
the hotel be expanded or a new hotel be constructed, but Nakamura persistently refused. Only after many of the local ryokans expanded their facilities or constructed new buildings did he approve the construction of a new hotel. However, he rejected a proposal for a 600-room hotel and decided instead to construct a 300-room hotel. Nakamura reminded us that “we must keep our promise to the local ryokans until the very end.”Yoshizawa: Everyone in the company worked together for the foundation of the new company, but what served as the motivating force?Sakamoto: There was an expression in the coal mines, “one mountain, one family,” which provided psychological support to the miners’ families. In the mines, if anyone performs their work carelessly, this puts the lives of everyone at risk, and this tension gave rise to a Joban culture that places particular importance on unity that goes beyond the family, local ties, and simple honesty. For this reason, we thought of everything and did things by ourselves. When the new company was established, for example, instead of using professional hula dancers at the resort, we created a dance school and invited an instructor from Tokyo, and girls who had just graduated from middle school practiced intensely. They had never seen an actual hula dance before, but we were moved and encouraged to see them dance with such determination. Because we value straightforward originality and honest effort that cannot be imitated, we all remember our work with fondness, and I’m confi dent that our customers were pleased, too.Yoshizawa: I think that the two fundamental factors behind your company’s success were that you didn’t focus solely on your own interests and you placed an emphasis on the local community. It is truly splendid when the usua l and natural conduct of the company is in harmony with the loca l community, without the need to talk about CSR. I think that this provides us with an idea of the fundamentals of management.
Part 1: Joban Kosan Co., Ltd.
Business cannot succeed without a harmonious relationship with the local community
Hiroaki Yoshizawa, general manager of the Corporate Social Responsibility Department, visited Joban Kosan Co., Ltd. The company changed its business from coal mining to tourism at the height of the energy revolution in the late 1960s and maintained employment as well as the lifestyles of its employee’s families.
Learning CSR From Other Companies
Spa Resort HawaiiansThe origins of Spa Resort Hawaiians can be traced back to the Joban Hawaiian Center established in 1966. This region, which extends from Iwaki-shi in Fukushima to Kitaibaraki-shi in Ibaraki, prospered since the Meiji Era as the greatest coal region in Honshu, but in the 1960s the source of energy rapidly shif ted from coal to oil, and Joban Tanko, the predecessor of Joban Kosan, wagered its future and the development of the local economy on a shift to tourism. Supported by a new era in which people demand more leisure, the move was a tremendous success. In 1990, the name was changed to Spa Resort Hawaiians.
For details, see our Web site.
Fuji Xerox Sustainability Report 2006 32
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Environm
entalP
erformance R
eport
Corp
orate Profi le
Social P
erformance
Rep
ortM
anagem
ent andO
rganization
How are we going to bring out
the unique characteristics of Fuji Xerox?
What approach are we taking
toward society and the environment?
In this section, we summarize our policies
for social and environmental issues and
the present state of our efforts to solve these issues.
Please consult the Report Map.
Choose a page number in the
print version, and a list of links to
Web sites that relate to that page
will appear.
For further details, visit our Web site.
Access “For details, see our Web site” to search for the sections of the report that you would like to read on the Web site.
To fi nd information that corresponds to articles in the print version…
Corporate Profi le
Social Performance Report
Environmental Performance Report
P34
P38
P44
P52
Management and Organization
Waste measureFor details, see our Web site.
Fuji Xerox Sustainability Report 2006 33
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Corporate governance
Management and Organization
This section reports on Fuji Xerox’s management and organization. The foundation of our CSR activities is to translate Fuji Xerox’s ideas and philosophy, which are statements of why we exist and what values we want to bring to society, into more specifi c visions and strategies.
Ideas and Philosophy
This section introduces the ideas and philosophy that have been handed down since the establishment of Fuji Xerox. All of our business activities are based on these ideas and philosophy. Fuji Xerox believes that continuing to pursue these ideas and philosophy will lead to an increase in our value within society.
Mission Statement
Shared Values
Global Compact
Visions and Strategies
Based on our ideas and philosophy, Fuji Xerox develops a corporate vision stating the kind of company we wish to be and a business vision that states the kind of businesses through which we are contributing to society. Furthermore, we formulate strategies to realize these visions within the surrounding business environment and given society’s trends.
Our corporate vision
Our business vision
Our strategies
Organizations and Systems
Based on the management and business visions and strategies, we have developed optimal systems. Organizations are flexibly formed to maximize the value that we provide to customers in accordance with current strategies. Committees and systems are also in place to ensure effi cient decision-making processes for the activities of the organizations.
Management organization
Risk management
Ethics and compliance
Information disclosure andinformation security
Corporate governance
Fuji Xerox Sustainability Report 2006 34
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For more information, see our Web site at http://www.fujixerox.co.jp/eng/sr/E
nvironmental
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The Mission Statement represents what Fuji Xerox and its affiliates, as well as all of the employees who work for us, are aiming for.
The idea to “build an environment for the creation and effective utilization of knowledge” expresses the business domain of Fuji Xerox. The raison d’être of the company is expressed by “contribute to the advancement of the global community by continuously fostering mutual trust and enriching diverse cultures” in this business domain and “achieve growth and fulf il lment in both our professional and personal lives” of employees who work to attain the goals.
Our Shared Values express the 10 values that characterize Fuji Xerox employees as they engage in business. All of these values symbolize the characteristics of our employees. With these values in mind, we are striving to apply our Mission Statement in our daily operations.
Shared Values
In 1992, Fuji Xerox announced the “Good Company Concept” on which our management is based. According to this concept, a good company should aim to be “strong,” “kind” and “interesting.” A “strong” company can deliver excellent products and services that satisfy customers and also reward its shareholders on an ongoing basis. A company is “kind” in terms of its attitude to the local and global community, which includes the environment, ethics, and social contribution. An “interesting” company allows its employees to find their life and work interesting. Fuji Xerox aims to become a company that has a good balance of these three attributes.
Our corporate vision
Build an environment for the creationand effective utilization of knowledge,
Contribute to the advancement of theglobal community by continuously fostering
mutual trust and enriching diverse cultures, and
Achieve growth and fulfillment in both our professional and personal lives.
Mission StatementWe, the Fuji Xerox Group, will strive to;
Interesting
Strong
Kind
Good Company Concept
We have announced “Open Office Frontier” (OOF) as our business vision. OOF aims to create offices as open places that connect people working at different companies in the era of ubiquitous computing and explore a better way of working there
Our business vision
Ideas and Philosophy
together with customers.In order to realize this vision, Fuji Xerox is working to create
new value.
Visions and Strategies
, see our Web site.Global Compact
Shared Values
EnvironmentalConsciousness
CustomerSatisfaction
High ethicalStandards
Professionalism
CulturalDiversity
Joy andFulfillment
Adventurous/Pioneer Spirit
Trust andConsideration
Team Spirit
ScientificThinking
Mission Statement
For information on the
Fuji Xerox Sustainability Report 2006 35
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Cor
pora
te g
over
nanc
e
In order to allow us to continue to be a company that is useful to society, Fuji Xerox is currently implementing the V06 management reform program. The goal of V06 is to build strong
Our strategies
Organizational structure
Function-based groups
Corporate Research Group
Business groups
Office Services Business Group
Production Services Business Group
Office Products Business Group
Technology Development Group
Development Management Group
Services Technology Group
Production Technology Group
Quality Assurance Group
Manufacturing Group
Sales
Customer Service & Support
International Business
Headquarters
Co
rpo
rate
Go
vern
ance
Off
ice
Pre
sid
ent
Bo
ard
of
Dir
ecto
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Co
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Exe
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tee
In the performance of our business, Fuji Xerox’s management organization comprises “business groups” whose objectives are to accelerate the growth of key businesses and “function-based groups” intended to integrate functions. The Corporate Executive Committee, the highest decision-making body of the
Management organization
corporate capabilities and achieve business growth. By advancing the V06 program, the company aims to solidify its foundation for making itself stronger, kinder and more interesting.
Fuji Xerox has established a system to clarify the responsibilities and powers of each organizational unit, and a committee structure to ensure swift decision-making. Based on this, we are managing our overall business activities on a consolidated basis.
Organizations and Systems
company, makes important decisions on matters related to Fuji Xerox and the relationship between Fuji Xerox and its affiliates. Eight function-based committees, each of which serves as a decision-making body for a single function, address individual subjects related to each particular function.
Structure of function-based committees
Function-based committees
Executive Strategy ReviewInformation Exchange MeetingBusiness Performance ReviewsPresidential Review
Corporate Executive CommitteeCommittee to make decisions on
overall management
CSR CommitteeCSR in general, as well as
customer satisfaction, social contribution and the
environment
New Xerox Frontier Committee
Basic policies and measures for strengthening
and reforming corporate structure
Supply Demand Committee
Policies and measures concerning minimization of lost sales opportunities, inventory reductions, and improvements
in supply chain costs
Quality Review Committee
Policies and measures related to product quality
and safety
Technology Committee
Technological strategies, consistency, and policies
Marketing CommitteeCorporate-level marketing
issues, strategies, and policies
Information & Process Committee
Projects for promoting use of information technology
in corporate business process reforms
Risk & Ethics Committee
Risk management and corporate ethics in general
Fuji Xerox Sustainability Report 2006 36
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For more information, see our Web site at http://www.fujixerox.co.jp/eng/sr/E
nvironmental
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Risk management is the key to internal controls, and Fuji Xerox considers it extremely important to its management and organization. Establishing and maintaining an internal control system is the responsibility of managers. As long as businesses are social entities, managers must be responsible for not only shareholders but also society as a whole, including many stakeholders. We have adopted JISQ2001 to realize the plan, do,
Risk management
check and action (PDCA) cycle for risk management and have established basic risk management rules and implementation rules based on this framework. The basic rules clearly define the fundamental risk management policies, which consist of basic objectives and action guidelines, while the implementation rules clarify the duties of organizations and the authority of their managers.
One of the fundamental shared values at Fuji Xerox is to act sensibly as a corporate citizen in order to maintain the trust of customers, employees, local communities, and other stakeholders. Since the foundation of the company, our top executives have emphasized the importance of fair corporate conduct and have implemented this principle.
Since there has been the continual occurrence of scandals at large corporations worldwide, however, businesses have been urged even more strongly than before to put companywide risk control in place and ensure fair information disclosure. Since
Ethics and compliance
Since our establishment, Fuji Xerox has used an outside director system, and in 1999 we introduced a corporate officer system. We reduced the term of office for directors and corporate off icers in June 2002 from two years to one, with the aim of establishing a system that would enable us to respond more quickly to changes in the business environment.
An “agreement on audits by Corporate Auditors” was concluded between the Corporate Auditors and the President and Representative Director to ensure the independence of the latter’s position and authority.
Corporate governance
In 1999, Fuji Xerox formulated the Rules for the Handling of Corporate Information to ensure appropriate communication and sharing of information within its organization, proper external information disclosure, and thorough protection of its own confidential information as well as that of its customers and business partners. The rules aim to strike a balance between the protection of information assets and their effective utilization. In FY2005, Fuji Xerox established the Information Security Department, which formulates information security policies and implements information management measures
Information disclosure and information security
throughout the company. In this way, we are aiming to raise the level of maturity for information security governance and increase the performance of information security (reducing related incidents). Meanwhile, all our domestic sales divisions and sales companies*1 obtained certif ication based on “BS7799-2: 2002”*2 international information security management system standards and “ISMS Version 2.0”*3 domestic information security management system standards.*1: One of the sales companies acquired certifi cation in 2004.*2: Certifi cation standards established by the United Kingdom Accreditation Service (UKAS)*3: Those set by the Japan Information Processing Development Corporation
Textbook on basics of laws and ordinances and comprehension test Web page
Please also see Highlight 2 “Compliance Is More than Just Formal Measures” (p 14-17).
General Meeting of Shareholders
President
FinanceCommittee
ExecutiveNomination &Compensation
Committee
Board ofCorporateAuditors
AccountsAuditors
Board of Directors
Internal Audit &Analysis Department
Corporate Executive Committee
Chart of the corporate governance system
2003, Fuji Xerox and its aff iliates have worked to restructure their corporate ethics and compliance systems in order to be socially accountable for risk control and information disclosure.
Fuji Xerox Sustainability Report 2006 37
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Social performance
Social Performance Report
In this section, we report on Fuji Xerox’s relationships with various stakeholders, including employees, customers, local communities, and society at large. The status of specifi c activities is discussed along with the results and evaluations of these activities.
Employee morale survey
Employment and workingenvironment
Diversity and opportunity
Human Resources
Labor-management relations/human rights
Occupational health and safety
Employee welfare
Relationships With Employees
Contributing to society as a member of society
Social contribution through Fuji Xerox’s core business
System for support of social contribution
P41
Employees
Governments
Shareholders
P39
P42 P42
Fuji Xerox
Localcommunities
Businesspartners
CustomersRelationships With Societyand Local Communities
Relationships WithBusiness Partners
Relationships with suppliersRelationships With
Customers
Product safety
Communication with customers
Fair competition and fair trade
Fuji Xerox Sustainability Report 2006 38
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For more information, see our Web site at http://www.fujixerox.co.jp/eng/sr/E
nvironmental
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Roles
CompensationCompetency
Competency-basedappointment
Compensation inline with role grades
and performance
Each year, Fuji Xerox conducts a companywide survey to determine employee awareness and values concerning the company and their own jobs, with the aim of having the survey results ref lected within management’s goals and policies. In 2005, a total of 13,774 people were surveyed, with a response rate of 88.8 percent. Results showed that there was a decline in the scores for five items, called “core morale” (see graph on the right). The scores for certain questions about management reform programs, meanwhile, improved compared to the previous year, but the increase in scores was insignificant. Therefore, we believe that continued efforts are needed in this area.
Yearly changes in core morale scores (Fuji Xerox only)
Employee morale survey
The basic principle of Fuji Xerox is to respect human rights and manage the company from a long-term perspective. We are taking measures to respond to globalization while paying attention to employment security.
Employment and working environment
One of our Shared Values is respect for Cultural Diversity. Fuji Xerox believes that recruiting employees with versatile personalities leads to the creation of a lively workplace. In FY2005, Fuji Xerox introduced the Second Life Program to support the diverse lifestyles of senior employees. In the future, we aim to provide greater opportunities to make the most of people with disabilities and also create workplaces that enable employees to work with a sense of fulfillment irrespective of age or gender.
Diversity and opportunity
Sat
isfie
dD
issa
tisfie
d
Job satisfaction Workplace satisfactionSupport for personnel systems and operationsSupport for supervisor’s management
Support for management and organizational operations
2.60
2.80
3.20
3.00
3.40
3.60
2001 2002 2003 2004 2005 (FY)
Among the 20 items regarding “jobs,” “workplaces,” “supervisors,” “personnel administration” and the “company,” five core morale items are designed in particular to gauge the morale of employees and they concern “job satisfaction,” “workplace satisfaction,” “support for supervisor’ s management,” “support for personnel systems and operations,” and “support for management and organizational operations.”
Average
Number of employees (Fuji Xerox only)
Regular employees Non-regular employees Temporary workers
16,731 16,953 16,578 16,10916,590
2001 2002 2003 2004 2005(FY)
(persons)
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
0
“Roles” are pivotal to the Human Resources. The three main pillars of Fuji Xerox’s personnel system are “roles” def ined in accordance with its strategies, appointment to roles based on “competencies,” and “compensation” in line with role grades and performance. In FY2005, we worked to formulate plans to develop new personnel and compensation systems in order to solve the problems of the existing personnel system. We plan to introduce this new personnel and compensation system in October 2006 after holding consultations with the labor union.
Human Resources
Fuji Xerox is supported by people. We believe that it is important for each of our employees, with their diverse individual characteristics and backgrounds, to be independent and self-reliant, improve themselves, and continuously take on challenges. Fuji Xerox as a company provides the opportunities and places to foster employees who have the desire and stance of continually learning.
Relationships With Employees
Roles defi ned in accordance with strategies
(As of March 31, 2006) Work schedule Overtime work Employee turnover Length of employmentFor details, see our Web site.
Virtual HollywoodFor details, see our Web site.
Competency development program Internal recruitment systemFor details, see our Web site.
Number of employees by country/region
Country/territory Total(persons)
United States 58
Australia 1,497
Singapore 741
Thailand 1,119
New Zealand 464
Country/territory Total(persons)
The Philippines 294
Vietnam 38
Malaysia 444
China 6,889
Japan 24,969
Country/territory Total(persons)
Korea 1,047
Taiwan 1
Netherlands 4
Grand total 37,565
Fuji Xerox Sustainability Report 2006 39
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Soc
ial
perf
orm
ance
We protect the rights of workers, with management and labor working together for the sake of mutual growth based on a relationship of trust and equal responsibility. In FY2005, Fuji Xerox implemented a system for transferring employees to affiliates and sales companies as part of measures for the optimal allocation of personnel to group companies. Prior to the implementation of this system, management and labor held many discussions and concluded necessary agreements and revised existing ones (basic transfer agreements, temporary transfer agreements, and conditions for transfer based on new sales strategies). In addition, Fuji Xerox strove to establish sound labor-management relations in each of its group companies and form a communication-oriented employee committee in each of its 34 sales companies to improve labor-management relations in the group as a whole.
Labor-management relations/human rights
Fuji Xerox has put in place systems to assist employees in striking a balance between career and family, and for getting involved in social contribution, so that each of them can be a good company employee, a good family-oriented person, and a good member of society.
In FY2005, we formulated action plans in response to the Law for Measures to Support the Development of the Next Generation and implemented measures to increase the effectiveness of various childcare-related systems that have already been introduced. Under these systems, 96.6 percent of employees who gave birth to children took childcare leave, and the number of men who took childcare leave rose to five employees. In the future, Fuji Xerox will communicate management messages to strike a balance between career and family, and will also introduce a discretionary work system to make a wider range of ways of working possible.
Employee welfareChanges in number of employees who took
nursing care or childcare leave (Fuji Xerox only)
Childcare leave Nursing care leave
0
10
20
30
40
50
60
70
2001 2002 2003 2004 2005
(Persons)
(FY)
5350
52
57
43
5 5
96
2
Since the “management principles for employee health” were adopted at the Corporate Executive Committee in 1996, management and employees have worked together to ensure safety and maintain good health, primarily through the activities of the Employee Health and Safety Committee and companywide consultations following medical examinations. In FY2005, bolstering group management became the top priority issue because Fuji Xerox had made sales companies in Japan into wholly-owned subsidiaries. In order to raise the overall occupational health and safety at all of its 34 sales companies to a certain level or higher, Fuji Xerox explained basic ideas and policies concerning health and safety to the employees and shared priority implementation items with them to step up their efforts.
Occupational health and safety
Basic spirit of labor-management relationsSharing a “respect for individuals” and “promoting the company’s development”
Establishment of a labor-management communication organization (employee committee)(1) To develop a consensus among employees on management policies by promoting mutual
understanding between employee committee and management(2) To promote communication between management and employees by presenting opinions
and proposals to the company(3) To maintain employee independence play an important role by improving employee morale
Future labor-management relations at affiliates and sales companiesDeveloping sound labor-management relations based on the employee committee(1) The manager of each affiliate or sales company needs to establish amicable and responsible labor-management relations with its employee committee • Foster harmony and a sense of unity among transferred/seconded employees and regular employees • Build trust between labor and management(2) Fuji Xerox provides support and guidance so that each affiliate and sales company can develop amicable labor-management relations
Fundamental concepts for developing group-wide labor-management relations
0
10
20
30
40
50
60
70
2001 2002 2003 2004 2005
Number of accidents
(FY)
Number of suspensions
63
43
39 39
31
21
15
8
1613
(Accidents)
Number of work-related accidents (Fuji Xerox only)
Percentage of employees who belong to the union Corporate Ethics HelplineFor details, see our Web site.
Asbestos measuresFor details, see our Web site.
Social service system Accumulated paid leave (under the expiration of the system for accumulation of unused paid leave)For details, see our Web site.
Fuji Xerox Sustainability Report 2006 40
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For more information, see our Web site at http://www.fujixerox.co.jp/eng/sr/E
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Based on a strong belief that product safety takes priority over everything else, Fuji Xerox makes the utmost effort to supply the market only with products that customers can use with conf idence. In FY2005, Fuji Xerox set the goal of eliminating design changes after mass-production plans were issued because such changes could easily lead to mistakes, and
Product safety
The basic policy is to carry out product safety reforms so that the company can continue to provide customers with safe products. We maintain continuous, bidirectional communication with customers and are engaged in fair competition and trade so that the interests of society at large, including customers, are not impaired.
Relationships With Customers
we established rules and processes to design safe products during the development stage. As a result, we were able to reduce the number of design changes for products developed during this fiscal year to about one-hundredth the previous level. In addition, based on the assumption that human errors cannot be reduced to zero, we worked hard to promote “accident prevention designs.”
Fuji Xerox has established the Voice of the Customer (VOC) system to share information concerning requests and comments elicited from customers through day-to-day operations, make rapid responses, and use the information acquired for the medium- to long-term development of products and services. Based on the Response Guidelines for Complaints and Claims, established in 2004, we set a unif ied companywide deadline for responding to complaints and claims in order to put in place a system for checking the process from the occurrence of
Communication with customers
complaints and claims to their solution through the VOC system. In addition, we focused our energy on collaboration. This is a program in which personnel in a given department introduce initiatives directly to customers that will lead to solution of the customers’ business problems. The objective is not to carry out direct sales promotions but to introduce Fuji Xerox’s business solutions to customers and increase their conf idence in Fuji Xerox, thus establishing solid relationships with customers as long-term business partners.
One of Fuji Xerox’s guiding principles of conduct is to carry out sales activities that are easy for customers to understand and to compete fairly with other companies. Management and divisions responsible for frontline operations have joined forces
Fair competition and fair trade
to prevent inappropriate acts and eliminate problems, mainly by appropriately interacting with government and municipal offices, correctly charging fees, and ensuring fair trade with business partners.
Customer communication structure
(1) Comparison to competitors’ CS surveys
(2) User CS surveys
Customer Information
Center(general contact)
Phone/email MailingInternal research
division/research firms
Person in charge(sales/CE/SE)
General
Telephone Centermachine
maintenance
Maintenance
Costomer ServiceCenter
(consumables)
Delivery
Costomer Administration
Centerinvoices,
payment, etc.
Billing CS surveys Various marketresearches VOC
Voice of CustomerComprehensive systemfor collecting information
from customers
Macroeconomic market
trend surveys
Customers
( )( )
Escalation systemFor details, see our Web site.
Customer Information CenterFor details, see our Web site.
Fuji Xerox Sustainability Report 2006 41
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Soc
ial
perf
orm
ance
Cooperation with parts suppliers is essential for delivery of high-quality products to the market at reasonable prices. Fuji Xerox works with suppliers to address issues such as global development of production sites and cost reductions, while also striving to establish favorable collaborative relations with parts suppliers as business partners that understand and share Fuji Xerox’s ideas and management policies for the environment and society.
In order to meet EU’s RoHS directive, which came into effect in July 2006, Fuji Xerox worked with its suppliers to determine whether parts contained hazardous chemical substances as well as to use parts that do not contain such substances. In FY2005, we established a system that complied with the RoHS directive. In FY2006, we are promoting CSR procurement that takes into consideration social and environmental requirements.
Relationships with suppliers
To realize a better society, Fuji Xerox is actively engaging in social contribution activities. We believe that carrying out nonprofit activities with a focus on society will help us fulfill our corporate social responsibility (CSR). Furthermore, we think it will enable employees engaged in such activities to achieve personal fulfillment and enhance their ability to take the initiative, thus contributing further to the vitality of Fuji Xerox.
Fuji Xerox’s social contribution activities are characterized by a focus on the Asian region, and support of activities and the education
Contributing to society as a member of society
A study meeting by the Fuji Xerox Co-Prosperity Society
Roppongi Green Road SIX, an activity based on businesses’ joint plans to clean up the Roppongi area
Funding of social contribution activities (Fuji Xerox consolidated)
(¥ Million)
0
100
200
300
400
500
600
700
800
900
2001 2002 2003 20052004 (FY)
606
719757
635661
Fuji Xerox only Sales companies and affiliates*1
*1 Including overseas subsidiaries from FY2005
of youth, who will lead the next generation.In FY2005, among the initiatives it has advanced since early on,
Fuji Xerox placed particular priority on academic and educational projects as well as corporate support of artistic activities. In the future, we will further step up efforts to communicate information on its social contribution activities inside and outside the organization and also focus energy on promoting exchange among about 1,000 graduates who received subsidies from the Setsutaro Kobayashi Memorial Fund.
As a member of society, Fuji Xerox is contributing to society in a wide range of areas that go beyond its corporate framework. Today, with the increased emphasis on the fulfillment of a company’s social responsibilities, we want to play an active role in realizing a better society.
Relationships With Society and Local Communities
Fuji Xerox is working to establish favorable relationships with business partners that share its corporate philosophy and policies. The company, which positions ensuring the fairness and integrity of procurement as one of our most fundamental and important ethical standards, is promoting clean procurement based on this standard.
Relationships With Business Partners
Aspen Institute Japan Junior AchievementFor details, see our Web site.
Fuji Xerox Sustainability Report 2006 42
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For more information, see our Web site at http://www.fujixerox.co.jp/eng/sr/E
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In an effort to use much of the technology and expertise acquired through our businesses to meet a wide range of social needs, Fuji Xerox is implementing social contribution activities that make the best use of our core business. One activity involves the use of color copy machines to produce textbooks for the visually impaired. Another is holding the JOHO-JUKU for junior high school students to learn about the basic concepts of information in specific and practical terms. We also implement ART BY XEROX, a project aimed at assisting artists in producing works by providing them with workshops equipped with copy machines and printers.
Social contribution through Fuji Xerox’s core business
We believe that fulfilling individual social responsibilities in forums outside the company is essential for achieving a better society and that this contributes to the personal growth and happiness of each employee. Moreover, the personal growth of employees promotes the vitalization of Fuji Xerox.
In FY2005, Fuji Xerox introduced nationwide activities that employees could easily participate in. One example was Volunteer Collection of Miswritten Postcards. We also asked our affiliates and sales companies in Japan and abroad, who had not done so yet, to introduce and develop HASU Club, an employee-run volunteer organization. In the future, Fuji Xerox plans to carry out HASU Club activities among an even greater number of affiliates and also upgrade public relations activities to encourage more employees to participate in volunteer activities.
Systems for support of social contributions
Artist book “DROP IN” by Rie Matsuba whose production was assisted by Fuji Xerox (published in May 2005)
One example of HASU Club activities: Painting class using materials and tools provided by Fuji Xerox employees (Cambodia)
YouthFocus on Asia Unique to Fuji Xerox Local roots
Support for Kids’ ISO 14000
Support for rural areas: Thailand
FX Hope Elementary School: Shanghai
FX Hope Elementary School: Gansu Province
Support for Perlman concerts
Support for Special Olympics
Woodblock print collection
Support for Art by Xerox
Aspen Institute Japane-Nakama support
Supporting InternationalUniversity of Japan
Support for production of Japanese textbooks
Support for Junior Achievement
Art contest (supported by Fuji Xerox Office Supply
Okinawa PARK (supported by Okinawa Xerox)
Acorn Square (Suzuka Fuji Xerox)
Creation of natural woodlands near populated areas
Association for Protecting Thickly Wooded Area in Tsukahara
Workshop for nature guides
Support for large-font textbooks
JOHO-JUKU
e-Nakama support
Asia Youth Orchestra
Setsutaro Kobayashi Memorial Fund
Xerox Education Foundation (Taiwan) Fuji Xerox Philippines FoundationYAYASAN FXAP-ASTRA GRAPHIA (Indonesia)FXAP Korean Foundation Thai Fuji Xerox FoundationA
cad
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The features of Fuji Xerox’s social contribution activities and our major social contribution programs
Universal designFor details, see our Web site.
See our Web site for information on Recognition by Society
Leave for volunteer activities Social service systemFor details, see our Web site.
Fuji Xerox Sustainability Report 2006 43
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Environmental performan
Environmental Performance Report
This section explains our initiatives for dealing with issues related to the global environment from three perspectives. It begins by covering our environmental management for the promotion of such endeavors, and then reports on our environmental efforts related to products and business activities.
Environmental Management
BusinessActivities
Products
P45
Initiatives for Products P48
P51Initiatives Within Business Activities
Review Process
Policy
Promotion system
Plan
Environmental Management
Environmental policy
Medium-term environmental plans
Overview of environmental impact
Goals and results
Environmental management promotion system Acquisition of ISO 14001 certifi cation
Environmental accounting
Environmental education
Environmental communication
Global warming Resource depletion Chemical management
Priority areas for initiatives
Initiatives to prevent global warming Development of energy-saving products
Initiatives to conserve natural resources Initiatives for planning/design/
procurement Initiatives for collection/production Initiatives for separation/recycling/disposal Offering of environmental-friendly paper
Initiatives to reduce chemical risks to the environment Product-related initiatives
Initiatives to reduce environmental impact at customers’ offi ces
Initiatives to prevent global warming Efforts at development/production sites Efforts for logistics Efforts at offi ces Other efforts
Initiatives to conserve natural resources Waste reduction at production site Reduction of water consumption at production site
Initiatives to reduce chemical risks to the environment Efforts within the manufacturing process Impact on global environment (air/soil/water)
Fuji Xerox Sustainability Report 2006 44
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For more information, see our Web site at http://www.fujixerox.co.jp/eng/sr/E
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The Fuji Photo Film Group has established the Fuji Photo Film Group Green Policy to aim for a higher level of environmental quality and is promoting environmental management on a group-wide scale in accordance with the policy.
One of All Fuji Xerox’s Shared Values is the environment. Based on this value and the Fuji Photo Film Group’s Green Policy, Fuji Xerox has developed the Ecology and Safety Vision, a vision of a sustainable society. With specific measures for realizing the vision announced in the Ecology and Safety Basic Policy, the Company is striving to attain the world’s top-level of environment management.
Environmental policy
In 2001, as a step toward realizing our Ecology & Safety Vision, we adopted eco-efficiency as an indicator of environmental management. We set the companywide environmental goal of doubling eco-efficiency by FY2010 compared to FY2000, and have been striving to achieve this goal.
Fuji Xerox views “prevention of global warming”, “conservation of natural resources” and “reduction of chemical risks” as its three priority areas. Based on this, we have developed six individual plans which respectively address “environmental technology”, “green products”, “recycling of resources”, “service solutions”, “logistics” and “business activities,” in a bid to reduce environmental impact.
Fuji Xerox has formulated medium-term (three-year) plans and annual plans for the each of the three years covered. We review the medium-term plans every year in order to put in place systems that enable us to f lexibly respond to changes.
Medium-term environmental plans
Fuji Xerox and its affiliates (All Fuji Xerox) respect harmony with the environment to the maximum extent in all of their business activities. In contributing to the sustainability of customers and society, the aim is to be the world’s leading companies by providing safe and environmental-conscious products and services.
Environmental Management
Fuji Photo Film Group
Green PolicyHigh level of
environmental quality
All Fuji Xerox
Shared Values<Environment>
All Fuji XeroxEcology & Safety Vision
All Fuji Xerox will introduce and develop into all aspects of its business world-class ecology-conscious activities that emphasize respect for the environment. Companies in the group will strive to offer customers products, services, and related information that are safe and kind to the environment, and thereby contribute to the environmental conservation ef for ts of individuals and society.
All Fuji XeroxEcology & Safety Basic Policy
Based on the recognition that environmental conservation and safety preservation are the basis of corporate existence, All Fuji Xerox will, through its entire workforce, strive to ensure that its business practices progressively reduce environmental impact. We will work to protect the lives and assets of our customers and society, which will be maintained and improved.
This policy shall apply to the entire operations of All Fuji Xerox.
Idea
Actualization
><
Outline of the environmental plans
(1) Prevention of global warming
(3) Reduction of chemical risks
(2) Conservation of natural resourcesPriority areasfor initiatives
[Individual plans]
(1) Environmental technology
(2) Green products
(3) Resource recycling
(4) Services solutions
(5) Logistics
(6) Business activities
Infrastructure for implementing environmental management
Fuji Xerox Sustainability Report 2006 45
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Envi
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In order to ensure proper environmental management, Fuji Xerox has set goals for environment management in three areas: “reduction of CO2 emissions (eco-eff iciency A)”, “new resource input (eco-eff iciency B)” and “reduction of chemical risks.” In FY2005, the company set the goal of increasing eco-efficiency A and B by 1.01 times and 0.98 times, respectively, and made an effort to achieve the goals, although the results fell short. Due to falling product prices, sales growth failed to catch up with increases in environmental impact, and this also affected the non-achievement of the goals. In the future, in order to improve eco-eff iciency, Fuji Xerox will focus energy on expanding on the services business with the aim of outgrowing our heavy dependence on materials.
Goals and resultsMain environmental impact and objectives
CO2 emissions (global warming)
Eco-efficiency (A) = ··· 1.01 times (compared to the
FY2000 level)
··· 0.98 times (compared to the
FY2000 level)
New resource input (resource depletion)
Eco-efficiency (B) =
Reduction of chemical risks
CO2 emissionsSales
New resource inputSales
A 40% reduction in PRTR substances discharged into the air (compared to the FY2000 level)
Making all new products RoHS-compliant
Fuji Xerox is working to achieve its goal of doubling eco-efficiency by FY2010 by curbing the input of new resources and reducing CO2 emissions as priority issues.
Flow of materials
Fuji Xerox and its aff iliates use the plan, do, check and action (PDCA) cycle to promote environmental management effectively on a group-wide basis. The CSR Committee, chaired by the president, is the supreme decision-making body for environmental issues. Decisions by the CSR Committee are put into practice throughout the company with related divisions responsible for execution. The results of each division’s activities are stored in environmental performance databases for evaluation, forming the basis for future review of strategies and plans.
Environmental management promotion system
Environmental management promotion system
Executive divisions
Corporate Executive Committee
In principle, convenes monthlyOverall decision-making on CSR activities in general
Development of environmental technology
Review of the results of implementation (once every six months)
TechnologyCommittee
CSRCommittee
DisposalAirAirWaste waterAir
RecyclingEnd-of-life products 34,000t
Sales/maintenance
OfficeLogisticsResearch/development/production
INPUT
OUTPUT
RecyclingPaper recyclingAirAir
Collection/separationEnd-of-life products 37,000t
Customer use
Materialsprocurement
ResourcesParts/materials 83,000tComposite materials/other materials
5,000tTotal 88,000t
EnergyElectricity (estimated)236 million kWh
EnergyFossil fuels(converted to crude oil) 51,900kl
Packaging 18,600t
EnergyGasoline 9,460klElectricity72.6 million kWh
Resource recycling Recycled plastic 410t
Resource recycling (reuse)Reused parts 1,500tReused drum cartridges 1,800t
EnergyElectricity197 million kWhFossil fuels (converted to crude oil)
11,500kl
Water 3,700kt
Chemicalsubstances(PRTR) 2,640t
EmissionsCO2 137,000t
EmissionsCO2
59,400t
EmissionsCO2 (Electricity) 84,000t
Water 3,500kt
RecyclingWaste 19,200t
RecyclingUsed packaging materials
Used paper
Chemicalsubstances(PRTR) 13t
DisposalWaste 5,310t
EmissionsCO2 111,000tNOx 148tSOx 9t
Overview of environmental impact
Fuji Xerox Sustainability Report 2006 46
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Fuji Xerox and its aff iliates view acquisition of ISO 14001 certif ication as an important foundation for environmental management. We promote acquisition of ISO 14001 certif ication at both our production and non-production divisions (sales, service, headquarters staff divisions) in Japan and abroad in order to apply environmental management that incorporates each division’s
Environmental accounting
operations. In FY2005, Fuji Xerox Eco-Manufacturing Co., Ltd. (Thailand) and Yamanashi Xerox* obtained ISO 14001 certification. Starting FY2005, Fuji Xerox incorporated ISO 14001 standards into its corporate management strategy to promote environmental management as an integral part of its business.* The company was renamed Fuji Xerox Yamanashi Co., Ltd. in April 2006.
Environmental education
Raising the environmental awareness of each person is important for the achievement of a sustainable society. In order to develop employees with a high level of environmental awareness and also support efforts to create an environment in which environmental conservation activities are carried out spontaneously on a society-wide scale, Fuji Xerox is focusing energy not only on educational programs centered on lectures but also fieldwork-type programs that encourage employees to participate in actual environmental conservation activities. Fieldwork-type programs consist mainly of activities closely connected to local communities, including “energy-saving campaigns,” which target families, and “Kids’ ISO program,” an environmental education program for children who will lead the next generation. We will strive to raise the environmental awareness of our employees so that more of them take environmental issues into consideration and display the initiative to make improvements by participating in these programs.
Environmental communication
Fuji Xerox makes available to stakeholders information concerning environmental impact generated by our business activities, our initiatives to reduce this impact, environmental data on products, and other aspects of our environmental endeavors, through a variety of mediums, including the Internet and exhibitions as well as advertising. Fuji Xerox’s environmental communication activities are not limited to the disclosure of information. We also strive to make our environmental activities a forum of active, two-way communication in which the wisdom of customers and various other stakeholders is combined. As in 2004, Fuji Xerox exhibited in the Eco-Products 2005. Under the theme “Protecting the Earth in the Office,” we presented our environmental initiatives, through products and services, global warming prevention we can do in the office, paper procurement with an eye on raw materials, and a perpetual paper recycling system that treasures resources. At Eco-Products 2005 site
Environmental accounting is used to quantitatively analyze Fuji Xerox's environmental activities as a whole, expressing changes in revenue/expenses and environmental impact. In FY2005, Fuji Xerox produced economic benefits from initiatives for Integrated Recycling
System, keeping the environmental balance in the black as in FY2004.A future task is to clarify the relationship between investments
and reductions in environmental impact and use the results of this clarification for more effective environmental investments.
Certifi cation ceremony for a school that implemented the Kid’s ISO program (Minamiashigara-shi, Kanagawa)
Creating Satoyama [natural woodlands near populated areas] with close regional ties (Narita-shi, Chiba)
Acquisition of ISO 14001 certifi cation
Environmental accountingFor details, see our Web site.
Environmental education systemsFor details, see our Web site.
Fuji Xerox Sustainability Report 2006 47
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Fuji Xerox recognizes power consumed when customers use its products as a type of environmental impact we must alleviate. Based on this recognition, we are striving to reduce environmental impact in both the hardware and software aspects of products by curbing power consumption for our entire product lineup. In FY2005, we set the goal of reducing total power consumption for our products by 6 percent compared to the previous year, but this goal was not obtained. Despite this, we won the Energy Conservation Prize for the seventh consecutive year for our high level of technology and the overall energy-saving performance of our products.
Initiatives to prevent global warming
One key area of our environmental conservation efforts is our Integrated Recycling System. This system is based on a closed-loop system designed for the effective use of resources, and treats end-of-life products as valuable resources instead of waste. Two approaches are used for each process in the product lifecycle from upstream (planning) to downstream (recycling). One is “inverse manufacturing,” intended to create products with low environmental impact based on the assumption that parts will be reused. The other is “zero emissions,” which refers to the full use of the resources contained in parts that cannot be reused in their entirety, through separation and recycling. This Integrated Recycling System has been applied on a global scale. The Integrated Recycling System, which began operation in the Asia Pacif ic region in December 2004, is steadily bringing satisfactory results.
Models that have won the Energy Conservation Prize and new technologies that support environmental-friendly products
Please also see Highlight 6 “The Long Road to a Recycling-Based Production System” (p 28-29).
Fuji Xerox tackles issues involving global warming, resource depletion, and chemical management throughout the life cycle of products. We also support initiatives to reduce environmental impact, such as reducing paper and power consumption in customers’ offices, by proposing and selling environmental-friendly products.
Initiatives for Products
Total power consumption*
Integrated Recycling SystemInitiatives to conserve natural resources
1997 1998 1999 2000 2001 2002 2003 2004 2005
(%)
(FY)
40
50
60
70
80
90
100
*Power consumption per product used in the market
100
9490
8782
78
72
6660
50(Goal)
Inversemanufacturing Lifecycle planning
Reuse/recycling design
Environmental impact assessments
Closed-loop system
Reuse of parts
Reuse of materials
Separation of hazardous substances
Materials recycling
Thermal recycling
Closed-loop
system
Zero landfillNo pollution
No illegal disposal
Zero emissions
Col
or m
achi
nes
Mon
ochr
ome
mac
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s
DocuColor1250CP
Awardedthe 1999Energy
Conserva-tion Prize
Two-roll fuser technology Linkage between hardware and software High-speed free belt nip fuser technology
Vertical-cavity surface-emitting laser technology
DocuPrint181/211
Quick fuser technology
DocuPrintC2220
Awardedthe 2000Energy
Conserva-tion Prize
DocuPrintC2425/2426
Awardedthe 2003Energy
Conserva-tion Prize
Awardedthe 2004 Energy
ConservationPrize
Awardedthe 2005 Energy
ConservationPrize
ApeosPort/DocuCnetre
C7550 I series
Free belt nip fuser technology
DocuCentre Colora450/f450 andCentre WareFlow Service
DocuCentre507/607/707
Awardedthe 2001 Energy
ConservationPrize
Awardedthe 2002 Energy
ConservationPrize
Roll-in-roll technology
Latest
Fuji Xerox Sustainability Report 2006 48
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Starting from the product planning/design phase, Fuji Xerox assumes that parts will be reused for many generations, and the percentage of parts used for two or three generations is steadily increasing. In FY2005, with the rapid shift of the copy machine market to color devices over the past several years, the market for monochrome machines in which parts were used for
Initiatives for planning/design/procurement
Fuji Xerox takes responsibility for the collection of end-of-life products. The company made an all-out effort to collect end-of-life products so as to bring the collection rate as close to 100 percent as possible. In FY2005, the introduction of a Companywide Information System enabled Fuji Xerox to directly grasp the volume of end-of-life products collected from customers. This allowed the company to understand the volume more accurately than before, boosting the
Initiatives for collection/production
Collection rate of end-of-life products
three generations shrank, lowering relatively the percentage of parts used for three generations. To ensure more effective reuse of parts, we are promoting unit designs that enable the reuse of modules and the replacement and recycling of units. Plans call for these designs to be applied to a wider range of models in the future.
1996 1999 2002 2003 2004
(%) 1st generation
2005 (FY)
2nd generation 3rd generation
0
20
40
60
80
100
98
72
47
29
60
18
63
23
14
2
36
31
3328 24
22
20052004200320022001200019991998
(Model)
(FY)0
2
4
6
8
10
12
14 13
65
2
556
4
Ratio of product's generations utilizing reused parts in next new generation products
collection rate. Fuji Xerox also reuses parts from end-of-life products collected to curtail new resource input. In FY2005, with the rapid shift of the copy machine market to color devices, differences in technical mechanisms made it impossible to reuse parts from monochrome machines, which comprised the bulk of the end-of-life products collected, for color devices. For this reason, the number of units produced fell, which held back reductions in new resource inputs.
2004 20052003200220012000199919981997
(%) Direct sales
(FY)
Sales companies
0
20
40
60
80
100 97
81
97
78
97
70
60
96 96
55
9792
98 988989
96
82
Reduction in new resource input (For main units only, weight of reused parts)
200320022001 2004 2005199819971996 1999 2000
1,800
1,200
1,400
1,700
800
400
2,0002,200
2,400
1,500
(t)
(FY)0
500
1,000
1,500
2,000
2,500
Parts that cannot be reused are disassembled and separated into as many as 44 parts categories so that they are recycled by recycling partners into materials. If they cannot be recovered as materials, they are used for thermal recycling for general heat sources. Part of materials recycling involves the reuse of materials, that is, materials are used to produce parts for Fuji Xerox products. Through this recycling system with a network of recycling partners, Fuji Xerox has achieved “zero landfill,”meaning that no waste goes into landfills.
Initiatives for separation/recycling/disposal Landfi ll rate
* There was a slight loss (0.01%) in the recycling process, however.
0
5
10
20
15
200320022001 2004 (FY)2005199819971996 1999 20000* 0* 0*0.090.4
1.2
14.9 14.9 14.9
11.7
(%)
Number of models to which reuse/recycling designs are applied
Fuji Xerox Sustainability Report 2006 49
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To ensure sustainable paper supply, it is essential to pay attention to forests and ecosystems that surround them and to the nearby local communities. Fuji Xerox has established Environmental, Health and Safety Requirements for Paper Procurement and makes it a pol icy to only use and sel l environmental-friendly paper in all of the countries where it operates. In Japan, meanwhile, we are implementing the Plan for
Offering of environmental-friendly paper
To respond to the RoHS Directive, and in light of trends for other international environmental regulations, Fuji Xerox in February 2003 revised our 1999 Green Procurement Guidelines to create our Green Procurement Standards. We are collaborating with parts manufacturers and suppliers to prohibit or control the inclusion of certain hazardous substances in products and parts and prevent their use in manufacturing processes.
Initiatives to reduce chemical risks to the environment
Shifting to Eco-Conscious Pulp, an initiative for discontinuing the use of virgin pulp from natural forests (excluding forests certif ied by third parties) by FY2008, and instead exclusively using pulp from used paper, plantations, and certified forests. Fuji Xerox is also trying to spread a system for recycling document paper, copy paper, toilet tissue, and other kinds of paper used in offices so that recycled paper can be reused in offices.
(%)
0
10
20
30
40
50
60
70
80
90
100
2005200420032001 2002 (FY)
76.8
18.4
7.361.8
51.154.5
58.4
82.8
24.5
58.3
90.8
27.8
63.0
Eco-conscious pulp Used paper pulp
Eco-conscious pulp(plantation +
certified forests)+
used paper pulp
Fuji Xerox and all of its affiliates in Japan, Southeast Asia, China and Oceania have created “Environmental, Health and Safety Requirements for Paper Procurement.” Designed to prevent resource depletion caused by forest felling and to prevent major impact on the ecology and lives of indigenous people, these requirements apply to the paper the companies sell or use, and are based on the six principles listed below. The same set of requirements is applied throughout the world, in combination with the requirements of the Xerox Corporation (based in the US). These requirements were put into effect on December 1, 2004.
(1) Comply with all applicable laws and codes of practice(2) Practice sustainable forest management
· Forests must be certified by third-party organizations,· or forests must be managed.
(3) State the source of reused pulp for used paper(4) Ensure the safety of chemical substances used(5) Eliminate chlorine bleaching process in paper production(6) Maintain an environmental management system at factory
Use of used paper pulp and eco-conscious pulp
Please also see Highlight 5 “Toward a Sustainable Model for Paper Procurement” (p 26-27).
Number of eliminated hazardous substances usage
2005200420032002200120001999
(Instances)
(FY)0
1
2
3
4
5
6
1
2
33
6
3
1
Initiatives to reduce environmental impact at customers’ offi ces
In the area of service solutions as well, Fuji Xerox provides a system that enables customers to reduce total environmental impact in their offices through the use of our products. We are also focusing our energy on not only developing software but also grasping in quantitative terms environmental impact reduction benefits from implementing such software and making such effects known to customers.
In FY2005, Fuji Xerox launched three software package products, which express in specific figures the environmental impact reduction benefits achieved when they are implemented. Predicted environmental impact reductions indicated in numerical terms can be used for environmental management based on ISO 14001 standards. Note: For each of the output requirements, such as single- or double-sided
printing, and each type of paper or printer used, environmental impact levels are displayed as “eco-levels” using leaf icons. This enables output that uses settings with less environmental impact.
Environmental, Health and Safety Requirements for Paper Procurement
Selection display on new ArcEPS eco-printer
Eco-Conscious Pulp Plan FSC-certifi ed paperFor details, see our Web site.
Fuji Xerox Sustainability Report 2006 50
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Viewing global warming as one of the priority issues we must address, Fuji Xerox and its affiliates are working to reduce greenhouse gases, including carbon dioxide (CO2) and hydrofluorocarbon (HFC), which are emitted from business activities. Emissions of these substances are managed using eco-efficiency (sales divided by CO2 emissions) as an indicator. In FY2005, Fuji Xerox and its affiliates set the goal of increasing eco-efficiency in business activities (including logistics) to 1.2 and made an effort to achieve this goal, but the result remained at 1.15 because CO2 emissions from overseas production sites were larger than anticipated.
Fuji Xerox has set 106-point energy-saving checklist to examine energy-saving activities in a comprehensive and concrete manner. In FY2005, we carried out 106-point energy-saving inspections at all overseas sites. In addition, we revised the checklist and divided it into one for production sites and one for offices in order to make it easier to use.
Initiatives to prevent global warming
Fuji Xerox uses natural energy and checks energy-saving levels. In addition, we operate our waste management systems and reduce water consumption, while striving to attain the goal of reducing as close to zero as possible the risks from volatile organic chemicals (VOCs), PCBs, and other chemicals.
Initiatives Within Business Activities
Fuji Xerox only Japan Japan and abroad
Note: The results of calculations shown above are limited to production sites.
50
71
98
43.9
66.5
95.7
42.4
67.2
99.9
200520042003 (FY)0
(kt-CO2)
20
40
60
80
100
Changes in CO2 emissions from development and production sites in Japan and abroad
Fuji Xerox positioned the establishment of an Integrated Resources System as one of its central environmental conservation activities. We are promoting initiatives to deal with resource depletion issues at our sites in Japan and overseas, and are also actively working to achieve zero emissions. In FY2005, at six of our sites in Japan, we attained the goal of reducing the total weight of waste generated per unit by 7 percent compared to a year earlier. Zero emissions were attained at all production sites in Japan and at three of the four production sites overseas, and this was maintained in FY2005 as well. Up to now, water resources have been chief ly managed at production sites, but Fuji Xerox will work hard to reduce water consumption and recycle used water on a companywide basis.
Initiatives to conserve natural resources (Unit: 1,000t)
0
100
200
300
500
1,000
1,500
2,000
2,500
2001 2005 (FY)
Takematsu Center
Ebina CenterSuzuka Fuji Xerox
Fuji Xerox Imaging MaterialsFuji Xerox of Shenzhen
Fuji Xerox of Shanghai Niigata Fuji Xerox Manufacturing
Fuji Xerox Korea (Incheon)Iwatsuki Center
Taiwan Fuji Xerox (Taoyuan)
Water consumption
Fuji Xerox has responded to the trends in the regulation of hazardous chemical substances in Japan and overseas, and we have also independently decided on measures to control and reduce the environmental pollution risks from our business activities and are working to implement these measures. Through the “Detailed Rules for Chemical Risk Management,” formulated in April 2005 to carry out integrated chemical risk management measures, we are striving to prevent disasters and environmental pollution caused by chemical substances. In FY2005, we worked to reduce emissions into the air of substances designated by the PRTR law from production sites through measures that included the introduction of VOC emission incineration facilities at our Takematsu Center. As a result, we successfully achieved the goal of reducing such substances by 40 percent compared to FY2004.
Initiatives to reduce chemical risks to the environmentHandled Discharged Transferred
20012000 2002 2003 2004 2005 (FY)
2,8002,6002,4002,2002,0001,8001,6001,4001,2001,000
800600400200
0
(t)
1,924
16 96
2,637
4713187 122 17
309
555
819
18 20127
21128 76
Volume of PRTR substances handled, discharged and transferred (Production sites in Japan)
Percentage of fuels used Introduction of low-emission vehicles NAS batteries Ice thermal storageFor details, see our Web site.
Waste measurement systemFor details, see our Web site.
Chemical risk reduction activities Volume of PCB stored by itemFor details, see our Web site.
For , see our Web site.Site Data
Fuji Xerox Sustainability Report 2006 51
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Corporate profile
Corporate Profi leFuji Xerox defi nes “documents” not only as information inscribed on paper but also as knowledge in a multimedia format, including electronic data, images and audio.In supporting business, the company believes that the vital point is how we can share “documents,” which are very important managerial resources, and utilize them in a creative and effective way.Based on this way of thinking, we provide customers with document services to increase the productivity of their offi ce work through process reforms, and as a partner we carry out activities to enhance the quality of their management.
Headquarters Akasaka Twin Tower East 17-22 Akasaka 2-chome, Minato-ku, Tokyo, Japan 107-0052Telephone +81-3-3585-3211 Established February 20, 1962 President Toshio Arima Capital 20.0 billion yen Shareholders Fuji Photo Film Co., Ltd.: 75%
Xerox Limited: 25%
Main domestic operations
Headquarters’ operations Tokyo Development/manufacture
Ebina, Iwatsuki, Takematsu, Kawasaki, Suzuka, Namerikawa, Shanghai, Shenzhen, etc.
Research sites Nakai, Palo Alto (California, United States)
Sales and service sites Located in all major cities throughout Japan
Fuji Xerox Co., Ltd.
Performance in FY2005 (April 1, 2005 to March 31, 2006)
633.5 653.1
1,002.2 1,029.2
690.1
1,113.1
0
200
400
600
800
1,000
2003 2004 2005 (FY)
(¥ Billion) Fuji Xerox only Consolidated1,200
(FY)
Fuji Xerox only Consolidated
12.2
19.3
51.854.5
10.7
54.2
2003 2004 20050
10
20
30
40
50
60(¥ Billion)
2003 2004 2005 (FY)
13,158 12,956
34,01736,221
10,346
37,478
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000(Persons) Fuji Xerox only Consolidated
Revenue Ordinary profi ts Number of employees
Office products: 54%
Production services: 10%
Office printers: 17%
Office services: 6%
¥1,113.1 Billion
Other: 13%
Asia, Oceania:17%
Americas: 11%
¥1,113.1 Billion
Other regions: 5%
Japan: 67%
Revenue by business area (consolidated) Revenue by region (consolidated)
Business segments Key products
Document services
Offi ce multifunction devices, workstations, personal computers, facsimiles, CAD systems, plotters, printers, paper, electronic parts, others
Other Educational services
As shown in the map on the right, our sales and service territory covers Japan, China, and other Asia-Pacific countries and regions. Other areas are covered by Xerox Corporation, and Xerox Limited.
Japan China
Taiwan
Thailand
Cambodia The Philippines
Laos
Myanmar
Vietnam
Malaysia
Singapore
Indonesia
Australia
New Zealand
Hong Kong
South Korea
Sales and service areas of Fuji Xerox and its affi liates
Fuji Xerox Sustainability Report 2006 52
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For more information, see our Web site at http://www.fujixerox.co.jp/eng/sr/E
nvironmental
Perform
ance Rep
ortC
orporate P
rofi leS
ocial Perform
anceR
eport
Manag
ement and
Org
anization
Affiliates
Affiliates in Japan
Business companies
Fuji Xerox Printing Systems Co., Ltd.
FXPS Sales Co., Ltd.
Fuji Xerox System Service Co., Ltd.
Fuji Xerox Learning Institute Inc.
Xworks Co., Ltd.
Affi liates by function
[Development]
Fuji Xerox Information Systems Co., Ltd.
Fuji Xerox Engineering Co., Ltd.
[Production]
Suzuka Fuji Xerox Co., Ltd.
Niigata Fuji Xerox Manufacturing Co., Ltd.
Fuji Xerox Imaging Materials Co., Ltd.
[Personnel and general affairs services]
Fuji Xerox General Business Co., Ltd.
Fuji Xerox Career Net Co., Ltd.
[Services and operation]
CrossForce Co., Ltd.
[Sales]
Fuji Xerox Hokkaido Co., Ltd.
Fuji Xerox Iwate Co., Ltd.
Fuji Xerox Miyagi Co., Ltd.
Fuji Xerox Fukushima Co., Ltd.
Fuji Xerox Ibaraki Co., Ltd.
Fuji Xerox Tochigi Co., Ltd.
Fuji Xerox Gunma Co., Ltd.
Fuji Xerox Saitama Co., Ltd.
Fuji Xerox Chiba Co., Ltd.
Fuji Xerox Tokyo Co., Ltd.
Fuji Xerox Tama Co., Ltd.
Fuji Xerox Kanagawa Co., Ltd.
Fuji Xerox Yamanashi Co., Ltd.
Fuji Xerox Niigata Co., Ltd.
Fuji Xerox Hokuriku Co., Ltd.
Fuji Xerox Nagano Co., Ltd.
Fuji Xerox Gifu Co., Ltd.
Fuji Xerox Offi ce Supply Co., Ltd.
Fuji Xerox Shizuoka Co., Ltd.
Fuji Xerox Aichi Co., Ltd.
Fuji Xerox Aichi-Higashi Co., Ltd.
Fuji Xerox Mie Co., Ltd.
Fuji Xerox Kyoto Co., Ltd.
Fuji Xerox Osaka Co., Ltd.
Fuji Xerox Hyogo Co., Ltd.
Fuji Xerox Nara Co., Ltd.
Fuji Xerox Okayama Co., Ltd.
Fuji Xerox Hiroshima Co., Ltd.
Fuji Xerox Yamaguchi Co., Ltd.
Fuji Xerox Shikoku Co., Ltd.
Fuji Xerox Fukuoka Co., Ltd.
Fuji Xerox Kitakyushu Co., Ltd.
Fuji Xerox Nagasaki Co., Ltd.
Fuji Xerox Kumamoto Co., Ltd.
Fuji Xerox Kagoshima Co., Ltd.
Overseas aff iliates
Asia-Pacifi c (countries/regions)
[Sales]
Fuji Xerox Asia Pacifi c Pte Ltd··················Singapore
Fuji Xerox Singapore Pte Ltd···················· Singapore
Fuji Xerox Asia Pacifi c Pte Ltd
(Malaysia Operations)································Malaysia
Fuji Xerox Asia Pacifi c Pte Ltd
(Indo-China Operations)···························· Vietnam
Fuji Xerox Korea Co., Ltd.························· South Korea
Taiwan Fuji Xerox Corporation·················· Taiwan
Thai Fuji Xerox Co., Ltd.···························· Thailand
Fuji Xerox Philippines, Inc.························ The Philippines
Fuji Xerox Australia Pty Limited················ Australia
Fuji Xerox New Zealand Limited··············· New Zealand
PT Astra Graphia Tbk(general agency for Fuji Xerox)··················· Indonesia
Fuji Xerox (China) Limited························· China
Fuji Xerox Industry Development
(Shanghai) Co., Ltd.··································· China
Fuji Xerox (Hong Kong) Limited················ China
United States
FX Global, Inc.
Xerox International Partners
FX Palo Alto Laboratory, Inc.
Fuji Xerox Global Supply Solutions, Inc.
[Procurement and production]
Fuji Xerox of Shanghai Limited·················China
Fuji Xerox of Shenzhen Ltd.······················China
Fuji Xerox Far East Ltd.·····························China
Fuji Xerox Eco-Manufacturing Co., Ltd.··· Thailand
Fuji Xerox Sustainability Report 2006 53
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Kanji Tanimoto
Third Party Opinions
This year’s Sustainability Report from Fuji Xerox (print and online versions) presents the company’s basic stance and current situation, looking closely at what should be done in core businesses and what efforts are to be made with respect to social and environmental issues, so as to build sustainable socio-economic systems.
Before CSR has boomed, Fuji Xerox has progressively approached to the issues of such as the environment, compliance, and support for employees. For example, the company has been taking efforts to incorporate the compliance structure in its daily operations, resulting from an intensive and ongoing approach, and Fuji Xerox has been highly evaluated for understanding the importance of this process for the implementation of effective corporate governance. As a group, the company and its affiliates recognize that a shared sense of basic values and the incorporation of these values in core businesses are essential issues for the promotion of CSR. However, it is also necessary to observe the extent to which these values actually permeate the company.
Since FY2004, Fuji Xerox’s environmental and social reporting has been characterized by a mixed-media approach, involving a combination of print and online information. About half of the print editions have been devoted to emphasizing the company’s stance in terms of CSR and summarizing major efforts in that regard as “Highlight” sections. Accordingly, only the basics are presented in terms of fundamental CSR philosophy and policies, as well as social and environmental data. The format is easy to read and understand, but since it is an annual publication it would be preferable to include a straightforward review of social and environmental activities over the preceding year, together with related objectives and results. While the online version provides greater detail in the same format as the
print version, the various issues, future actions, and the like on the social front are not necessarily indicated. Many questions are left unanswered, such as why numerical values declined in the Core Morale Survey of employees, what were the social and corporate results of philanthropy activities, and what efforts are planned for the coming fiscal year to promote employment of the people with disabilities.
Fuji Xerox understands that CSR should be effectively incorporated into its management based on stakeholder perspectives, and the company is trying to have its management principles translate into visions and strategies, as well as organizations and systems. On the environmental front, a medium-term business plan has been formulated based on environmental policy, and the plan, do, check and action (PDCA) cycle is in place to for management planning, execution, and review. Establishment of this type of cycle is needed on the social front (management, personnel, social contributions, etc.) as well.
A specif ic and important issue for the future is the promotion of concrete CSR initiatives that include the supply chain on a global level, centered on China. Fuji Xerox has already constructed a solid system for green procurement, and another urgent task is the establishment and deepening of CSR procurement structures based on this system.
Finally, another important point in the formulation of this type of report in the future will be the elucidation of the social and financial effects of the various initiatives ref lected in non-financial information that is being disclosed in environmental, social, governance-related, and other areas. It is to be hoped that CSR reporting will be linked to financial statements and other reports, with a pioneering approach to information disclosure and the evaluation of total corporate value (i.e., corporate quality).
Fuji Xerox Co., Ltd.Akasaka Twin Tower East17-22 Akasaka 2-chome, Minato-ku, Tokyo, Japan 107-0052Telephone: +81-3-3585-3211
For more information: Corporate Social Responsibility DepartmentTelephone: +81-3-5573-2882 Facsimile: +81-3-5573-2883
• The entire content of this report is available on the Internethttp://www.fujixerox.co.jp/eng/sr/Published: October 2006 201-231 (06-10)
Dr. Tanimoto, who holds a PhD in Business Administration, is a professor at Hitotsubashi University’s Graduate School of Commerce and Management. He is also the Representative Director of Social Innovation Japan. His areas of research include corporate systems and the relation between enterprises and society. His publications include the book CSR (NTT Publishing).
Profile
Fuji Xerox Sustainability Report 2006 54
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Fuji
Xer
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This report is printed using 100% vegetable oil-based ink, which contains no volatile organic compounds (VOCs). Printed in Japan
印刷サービスのグリーン購入に取り組んでいます
Mr. Saito is an attorney at law since 1978 and currently works as an auditor for Neturen Co., Ltd. He is also a member of the Operation Committee at the Japan Federation of Bar Associations’ Center for Promotion of Legal Practice. Additionally, he is the vice-chair of the same organization’s Project Team for Human Rights and Corporate Responsibility Evaluation and Assistance. He was born in 1946, and is a graduate of the Faculty of Law of Tokyo Metropolitan University.
Makoto Saito
1. Judging from the commitment of President Toshio Arima and Chief Corporate Advisor Yotaro Kobayashi, as expressed in their own words, the foremost characteristic of CSR activities at Fuji Xerox is an extremely clear intent at the top of the organization regarding the essence of CSR as related to the business activities of the company.
As a result, the various topics in the Highlight sections of this report were all positively evaluated as initiatives to realize CSR. Valuable CSR-related efforts within Fuji Xerox include directing the company’s core document business toward the realization of CSR by constructing internal control systems for corporate customers; support for employee diversity, including women’s activities; consistent implementation both domestically and overseas with respect to issues such as compliance and employee issues in China; promotion of sustainability in paper procurement, a fundamental part of the company’s document business; and the establishment of the comprehensive Integrated Recycling System.
2. On the other hand, the report is incomplete in that it does not provide readily understandable explanations of future companywide goals or present the degree of achievement from a comprehensive CSR perspective, and time-based and companywide degrees of achievements with respect to the various issues discussed. In addition, although Fuji Xerox earns high marks for information disclosure, and has admitted that scores measuring employees’ core morale have declined for two consecutive years, it is somewhat problematic that no countermeasures are proposed. Also, the report cannot be positively evaluated in terms of the information included regarding the relation between Fuji Xerox and its stakeholders.
3. Based on the commitment of top management, Fuji Xerox’s core document business is directed toward CSR realization, and the company is positioning global CSR activities in a manner that is consistent both in Japan and overseas. Environmental issues are also being viewed from an far-reaching perspective, from upstream planning stages to downstream reuse and recycling. Virtually all of the important components of CSR are addressed. Nevertheless, it would appear that gaps are still present, in the sense that internal structures are not necessarily responding to this.
The report states that the CSR Committee is the “highest decision-making body with respect to the environment,” and if the CSR Committee is literally the “highest comprehensive decision-making body for CSR,” it would be desirable to place a CSR representative as a focal point in each department of the company. Through companywide functioning of CSR management, Fuji Xerox should expand its CSR efforts from a line to a plane, further deploying these both spatially and organically. This will likely be an important element in the further development of Fuji Xerox as a company dedicated to providing corporate customers with quality CSR.
It is to be hoped that Fuji Xerox will thereby arrive at a new business model featuring total implementation of CSR. In so doing, there is also a need for greatly expanded frank and honest dialogue with the various stakeholders involved.
The foregoing represents my opinion on the present report.
Editorial Policy
Fuji Xerox and its affi liates are carrying out business with global environmental and social issues in
mind. We are also taking on the challenge of solving these issues to become “good companies” for our
various stakeholders.
This report introduces efforts to solve issues concerning business operations and the current
status of the activities being carried out in relation to these efforts. It also attaches importance to the
presentation of policies and attitudes regarding issues, so that it is more than just a simple report of
activities and statistical data. In terms of activities, we particularly wish to report that the information
was gathered from a third-party perspective from those responsible for or concerned with these
activities, which is then summarized as “Highlights.”
Reference guidelines• 2002 Sustainability Reporting Guidelines of the GRI*• Environmental Reporting Guidelines (FY2003) of the Ministry of the Environment• Corporate evaluation standards in the 15th Corporate White Paper issued by the Japan Association of Corporate
Executives
Visit our Web site for a table comparing the guidelines of GRI and the Ministry of the Environment.* GRI: Abbreviation for the Global Reporting Initiative, an international organization established in 1997 to develop globally applicable guidelines for
corporate sustainability reports.
Scope of coverageThe data on environmental impact for Fuji Xerox and its affi liates covers all the domestic sites and overseas production sites that are subject to environmental accounting. As a rule, this report covers data from April 1, 2005 to March 31, 2006, which is Fuji Xerox’s fi scal year, but certain parts of the report provide data for the period starting from April 2006.
Third party opinionsFor a third party perspective on Fuji Xerox activities, we have received opinions from Hitotsubashi University Graduate School Professor Kanji Tanimoto and a lawyer, Makoto Saito.
Release schedule for the next reportSeptember 2007
The Sustainability Report 2006 is provided in a print version and an online version.
(1) Print version (56 pages)
The print version focuses on Top Management’s Commitment and Highlights, and presents Management & Performance in an abbreviated form.
(2) Online version (comprises 100 sections with information equivalent to 250 A4-size sheets of paper)
In the online version, the Management & Performance section provides in-depth reports on a wider range of activities than before. The online version also offers various navigation tools, such as report maps and guideline comparison tables (GRI/Ministry of the Environment), so that readers can easily access the information they are interested in. For
details, please see page 33.
We would be pleased to hear your opinions regarding our activities, and we hope that you will take a moment to fi ll out our survey.
For more information, see the online version at: http://www.fujixerox.co.jp/eng/sr/
Fuji Xerox Sustainability Report 2006 2 Fuji Xerox Sustainability Report 2006 55
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