Commitment by Management

In April 2011, Shiseido newly established the Shiseido Group corporate philosophy "Our Mission, Values and Way" as the guidelines of activities for all Group employees worldwide.

Specifically, "Our Way" in terms of our current corporate philosophy indicates how to address Shiseido's stakeholders, who Shiseido has valued since its foundation. In addition to the Ten Principles regarding human rights, labour, the environment and anti-corruption aspired to under the United Nations Global Compact, in which Shiseido announced its intention to participate in 2004, "Our Way" also includes the ISO 26000 principles on social responsibility, which are the world's first international standards related to social responsibility, and imperative concepts designated as core issues. In other words, "Our Way" is Shiseido's CSR charter. Going forward, Shiseido aims to realize a sustainable society through dialogue and cooperation with stakeholders while also promoting management that contributes to the creation of people's beauty and health by developing activities that address social issues and meet expectations.

In terms of "Toward Society and the Earth," one of the five stakeholders indicated in "Our Way," Shiseido has pledged its commitment to taking actions in the following manner.

1. 1.We abide by the laws of each country and region in which we operate, and maintain sound ethical behavior as well as respect human rights.
2. 2.We promote environmental initiatives in line with our own stringent standards, and consider biodiversity as we aim for a sustainable society in which humanity and the Earth coexist beautifully.
3. 3.We engage in a broad dialogue with society and strive to cooperate in solving social challenges.

Based on such conduct, Shiseido has designated "women & cosmetics (beauty)," "culture" and the "environment" as the three priority domains in which we can significantly contribute to society, and has established targets for respective domains to be achieved by 2020.

In the area of "women & cosmetics (beauty)," Shiseido previously had been promoting relevant initiatives as a priority CSR domain. We duly consider Shiseido's capability to undertake efforts to enhance support for women's independence and improve health while utilizing our accumulated know-how in corporate activities that for many years have supported the active roles of female employees, which account for 80% of overall Shiseido employees. In September 2010, Shiseido has signed the "Women's Empowerment Principles - Equality Means Business" guidelines collaboratively created by UNIFEM and the UN Global Compact, and will expand the circle of its activities globally in the future.

The SHISEIDO LIFE QUALITY BEAUTY PROGRAM is a representative activity in this domain aimed at enhancing quality of life (QOL) through techniques using "cosmetics (beauty)," which is Shiseido's main business. Under this program, Shiseido is developing the SHISEIDO LIFE QUALITY MAKEUP and the SHISEIDO LIFE QUALITY BEAUTY SEMINAR in Japan and overseas. In Asia and throughout the world, Shiseido will continue to bring out the "ultimate beauty" of customers and provide an enriched lifestyle for women in both mind and body.

Additionally, Shiseido's original corporate culture (intellectual and aesthetic assets) has evolved over the course of approximately 140 years, and accordingly, we take pride in creating beauty by extensively handing down, disseminating and providing feedback both internally and externally. In particular, building a relationship of trust with a total of more than 5,000 young artists for about 3,000 events centered on The Shiseido Gallery, which commenced operation in 1919, has served as a cornerstone of developing art and culture in Japan and Asia. Art can express people's fundamental joy, sorrow or hardships extending beyond language, racial or religious barriers and has the power to move all people's minds. By utilizing our aesthetic sense, Shiseido hopes to contribute to customers in Asia and other regions.

In the "environment" domain, Shiseido is expanding the Shiseido Earth Care Project, which is an environmental project promoted by Shiseido Group employees throughout the world based on the mission of "realizing a sustainable society where humanity and the earth's environment can coexist." In the future, Shiseido will promote initiatives by placing an emphasis on "product-related environmental response throughout the life cycle" and "global reduction of CO₂ emissions," thereby focusing our efforts toward realizing "new lifestyles that connect 'beauty' and 'ecology'" by pursuing various measures such as product-related environmental response.

Today, global social issues including the worsening of global environmental problems and poverty issues in developing countries have yet to be resolved. For this reason, Shiseido will promote CSR activities in order to develop a sustainable global society. This is our commitment to customers around the world.