Sharp Sustainability Report 2 014
Sharp Sustainability Report 2014
Editorial Policy
Social Activities
For Customers
Message from a Manager
092 Ensuring Quality and Safety
097 Making Easier-to-Use Products
102 Boosting Customer Satisfaction
Editorial Policy
Outline of the Sharp Group
Outline of the Sharp Group
Philosophies, Policies, Strategies
For Business Partners
Message from a Manager
108 Fair and Impartial Procurement Activities
110 Promoting CSR across the Supply Chain
112 Dealing with the Conflict Minerals Issue
113 Joint Efforts with Dealers
Business Philosophy and Business Creed
Business Philosophy and Business Creed
Top Message
Top Message
Policy on CSR Activities
Approach to CSR Activities
010 System to Promote CSR
For Shareholders and Investors
Management Strategy and CSR
011 Management Strategy and CSR
Message from a Manager
Communicating with Shareholders and Investors
For Employees
Message from a Manager
119 Fostering a Vibrant Corporate Culture
123 Company-Wide Small-Group Activities
124 Respect for Human Rights
125 Human Resource Development
129 Developing Company-Wide Diversity Management
136 Activities to Support Work-Life Balance
138 Promoting Occupational Safety and Health
Environmental Policy
017 Increasing Green Shared Value
Objectives and Achievements in CSR
Objectives and Achievements in the Area of Management
Environmental Objectives and Achievements
025 Objectives and Achievements in the Social Dimension of CSR
Corporate Governance / Internal Control
Corporate Governance
033 Internal Control
For Local Communities
Message from a Manager
144 Promoting Social Contribution Activities
145 Environmental Activities
148 Close-Up: Japan Water Prize
150 Educational Activities
152 Close-Up: Educational Activity Case Study
154 Social Welfare Activities
156 Employee Volunteer Activities
Risk Management
Risk Management
System to Promote Compliance
038 Putting Compliance into Practice
042 Information Security / Protecting Personal Information
043 Intellectual Property
Stakeholder Communications
Environmental Activities
Communicating with Customers
Communicating with Business Partners
159 Communicating with Shareholders and Investors
160 Communicating with Employees
162 Communicating with Local Communities
Environmental Sustainability Management
Putting Environmental Sustainability Management into Practice
Material Balance
049 Environmental Accounting
Product Development
Developing Environmentally Conscious Products and Devices
055 Close-Up: Energy Conservation Grand Prize
056 Examples of Super Green Products for Fiscal 2013
058 Promoting the Total Energy Solutions Business
060 Close-Up: Mega Solar Power Plant
061 Green Procurement / Managing Chemical Substances in Products
Third-Party Opinion
Third-Party Opinion and Response
Guideline Content Index
ISO 26000 Content Index
United Nations Global Compact 10 Content Index
Product Manufacture
Raising the Level of Environmental Performance in Factories
Curbing Greenhouse Gas Emissions
066 Minimizing and Recycling Waste
070 Effectively Using Water Resources
073 Effectively Managing Chemicals Used in Factories
About the Cover
Sharp’s medium-term management plan
(announced in May 2013) defines fiscal
2014 and beyond as a period of regrowth
for the company. The image of a rainbow
breaking through rain clouds represents
hope for the future and serves as a symbol
of Sharp’s recovery and growth.
Reducing Logistics-Related Environmental Impact
Disposal, Recycling
Expanding the Recycling of Used Products
081 Environmental Technologies That Contribute to a Sustainable,
Recycling-Based Society
Biodiversity Protection
Protecting Biodiversity
Boundary of Environmental Performance Data,
Calculation Standards for Environmental Performance Indicators
087 Boundary of Environmental Performance Data,
Calculation Standards for Environmental Performance Indicators
Sharp Sustainability Report 2014
Editorial Policy
Policy for Information Disclosure
Sharp's efforts toward corporate social responsibility (CSR), particularly the environmental and social dimensions of
CSR, contribute to creating a sustainable society. Information on these efforts is made available in the Social and
Environmental Activities section of the Sharp corporate website.
The Sustainability Report 2014 presents Sharp's fiscal 2013 efforts in three sections—titled Management,
Environmental Activities, and Social Activities—which are accompanied by a variety of related data. To keep our
various stakeholders appropriately informed, the website also provides detailed data and information on Sharp's
latest CSR activities.
Period and Items Covered
Period covered
Fiscal 2013 (April 2013 to March 2014)
However, some actual facts prior to and after this period, as well as subsequent policies, objectives, and plans, are
also included.
Sharp Corporation, along with its domestic and overseas subsidiaries and affiliates.
See pages 87 to 89 for the boundary of environmental performance data.
The names of overseas subsidiaries and affiliates are denoted with acronyms, such as SEC. For a list of the full
names of subsidiaries and affiliates, see pages 88 and 89.
Referenced Guidelines
Sustainability Reporting Guidelines Version 3.1 (2011, Japanese), Global Reporting Initiative (GRI)
GRI Content Index
Environmental Reporting Guidelines (2012 Version), Ministry of the Environment, Japan
Environmental Reporting Guidelines Content Index
Environmental Accounting Guidelines 2005, Ministry of the Environment, Japan
Scheduled Publication Date for Next Report
August 2015 (published annually since 1999)
Sharp Corporation
22-22 Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan
E-mail: [email protected]
CSR Promotion Unit
Corporate Management Group
TEL: +81-6-6625-1167
FAX: +81-6-6625-1274
Environmental Planning Department
Environmental Protection Unit
CS & Environmental Promotion Division
TEL: +81-6-6625-0438
FAX: +81-6-6625-0153
Sharp Sustainability Report 2014
Outline of the Sharp Group
Sharp's business activities comprise the "Product Business" (i.e., end-user consumer electronics and information
products) and the "Device Business" (i.e., key components of electronic products).
Sharp is working actively to develop its business by bringing forth never-before-seen, uniquely featured products
and devices, inspiring and impressing its customers, and pioneering new markets.
Outline of the Sharp Group
Corporate Profile
Sharp Corporation
Head office
22-22, Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan
Kozo Takahashi, President
September 15, 1912
Manufacture and sales in the Product Business (digital information equipment, health and
environmental equipment, solar cells*2, business solutions) and the Device Business
(LCDs, electronic devices)
Capital stock*1
121,884 million yen (rounded down to the nearest million)
Number of employees*1
Consolidated: 50,253 (24,118 in Japan; 26,135 overseas)
Entire Sharp Group: 58,519 (26,816 in Japan; 31,703 overseas)
*1 As of March 31, 2014
*2 The "Solar Cells" product group was renamed "Energy Solutions" in April 2014.
Main Products
LCD color TVs, color TVs, projectors, Blu-ray Disc recorders, mobile phones, tablets, electronic dictionaries,
calculators, facsimiles, telephones, others
Refrigerators, superheated steam ovens, microwave ovens, small cooking appliances, air conditioners,
washing machines, vacuum cleaners, air purifiers, electric fans, dehumidifiers, humidifiers, Plasmacluster Ion
generators, electric heaters, beauty appliances, LED lights, network control units, others
Sharp Sustainability Report 2014
Crystalline solar cells, thin-film solar cells, others
POS systems, handy data terminals, electronic cash registers, information displays, digital MFPs
(multifunction printers), options and consumables, software, FA equipment, ultrasonic cleaners, others
Amorphous silicon LCD modules, IGZO LCD modules, Continuous Grain Silicon LCD modules, others
Camera modules, CCD/CMOS imagers, LSIs for LCDs, microprocessors, flash memory, analog ICs,
components for satellite broadcasting, terrestrial digital tuners, RF modules, network components, laser
diodes, LEDs, optical sensors, components for optical communications, regulators, switching power supplies,
Sharp Sustainability Report 2014
Main Data
*3 Calculated based on sales to outside customers.
Sharp Sustainability Report 2014
*4 As of July 31, 2014
*5 Sharp Group comprises Sharp Corporation, its consolidated subsidiaries, affiliated companies accounted for by the
equity method, and other affiliated companies. Figures as of the end of each fiscal year (March 31).
Sharp Sustainability Report 2014
[ Philosophies, Policies, Strategies ]
Business Philosophy and Business Creed
Sharp Will Fulfill Its Social Responsibility, Abiding by the Core Principles of Its Business Philosophy
and Business Creed
"Make products that others want to imitate." These words, spoken by Sharp founder Tokuji Hayakawa, exemplify
Sharp's management concept of contributing to society through its technologies and manufacturing by being the
first to make products that meet the needs of a new era, and in the process, becoming a corporation that is known
and trusted by society.
In 1973, Sharp articulated the unchanging spirit of its founder in the company's business philosophy and business
creed. The business philosophy states that Sharp aims for mutual prosperity with society and stakeholders—the
foundation of CSR* today—by "contributing to the culture, benefits and welfare of people throughout the world." The
business creed calls for "Sincerity and Creativity," and all employees must hold to it and follow it in order to realize
the business philosophy.
Through its business activities, Sharp has always strived to put its business philosophy into action and to contribute
to the building of a sustainable society. In making a new start towards recovery and growth, Sharp will once again
return to the principles behind its business philosophy. By practicing sincerity of conduct and action and by calling
upon its "gene of creativity" to develop new products that generate new value—all the while keeping a strong
customer focus—Sharp is committed to fulfilling its social responsibility and to remaining a company that is known
and trusted throughout society.
* Corporate Social Responsibility
Achieve the Tenets of the Business Philosophy by Promoting "Sincerity and Creativity" in All
Business Practices
The business creed is the central axis of all business activities.
"Sincerity" means a working attitude mindful of what will offer genuinely useful solutions and happiness to
"Creativity" means a working attitude not content with the way things are. An attitude which always seeks to
add value, and to make efforts to innovate and improve.
Sharp Sustainability Report 2014
[ Philosophies, Policies, Strategies ]
Top Message
Be the Kind of Company Society Needs
Sharp was in the red for both fiscal 2011 and fiscal 2012 but got
back into the black in fiscal 2013 as it entered a restructuring stage
with all employees uniting as one to put Sharp's collective strength
into regaining our profits and the trust of society. The past year has
been one in which we have rediscovered the importance of
returning to the basics, such as making products with the customer
in mind, and mutual prosperity with stakeholders. We are truly
grateful for the support of our customers, business partners,
shareholders, and all the rest of our stakeholders.
Sharp's roots are stated in its Business Philosophy, which says
that "we are dedicated to the use of our unique, innovative
technology to contribute to the culture, benefits and welfare of
people throughout the world." Put simply, we aim to be the kind of
company society needs. Since the entire Sharp Group embarked
on a course of action based on the belief that the best way for us
to contribute to society is through our business, it is starting to feel
like we are picking up the pace towards recovery and growth.
Under our medium-term management plan, we expressed our desire to reform and expand our business so that we
could provide 'the good life' in many aspects of people's lives. We will realize a range of new possibilities by utilizing
our many special technologies—and we will not be limited to our conventional fields of business. To do this, besides
our existing areas of LCDs, solar cells, Plasmacluster Ions, telecommunications, and document systems, we will
expand the scope of business in five new areas: (1) healthcare/medical services, (2) robotics, (3) smart
home/mobility/office, (4) safety and security of food/air/water, and (5) education. We will make these new fields the
pillars of our business, as we look not just a century into the future but many years beyond that.
Once again this fiscal year the entire Sharp Group will take on many new challenges as it creates new
technologies, products, and services based on our strong customer focus. And besides operating according to ISO
26000 and other international standards, we will continue to support the 10 principles of the United Nations Global
Compact, which covers areas such as human rights, labor, the environment, and anti-corruption, as we contribute
to solving such worldwide issues as conflict minerals and respect for human rights.
We are stepping up our activities to deal with global environmental problems, and in order to further clarify this
direction, we have defined our environmental policy in terms of 'Increasing Green Shared Value', as we carry out
efforts centered around the pursuit of fulfilling society's needs for a low-carbon society, the recycling of resources,
and harmony with nature. Under this policy, we manufacture products that meet society's needs by striving to raise
environmental performance in every stage of the supply chain, including product manufacture, logistics, product
use by customers, and recycling.
While making every effort to fulfill the expectations directed at Sharp, we will continue striving to be the kind of
company society needs—a company that can contribute to the sustainable development of society. I look forward to
your continued support.
Sharp Sustainability Report 2014
[ Philosophies, Policies, Strategies ]
Policy on CSR Activities
Approach to CSR Activities
Sharp's CSR has its roots in its Business Philosophy and Business Creed. Sharp divides its CSR activities into four
large categories and pursues them while engaging and communicating with stakeholders. The Sharp Group
Charter of Corporate Behavior and the Sharp Code of Conduct serve as the basis for all of these activities. All
directors and employees of Sharp Group companies act appropriately and in a sincere manner in line with these
guidelines, in order to make Sharp the kind of company society needs.
Message from the Person in Charge of CSR Promotion
Companies have a give-and-take relationship with their
shareholders, business partners, customers, local communities,
and employees. All corporate activities—and even a company's
very existence—have an impact on society in some way. That is
why it is crucial for a company to contribute to society through its
business activities in a way that will help solve various social
issues, so that it can grow together with society in a sustainable
In an increasingly globalizing world, it may be no exaggeration to
say that there is no incident or phenomenon in the world that does
not in some way connect with our own company. For example,
stakeholders are showing increasing concern for labor and human
rights issues in the supply chain. As a corporate citizen, Sharp is
expected to be fully aware of the range of influence its activities
have on society and to address social issues.
Sharp conducts various CSR activities in line with its stance on social responsibility, as defined in its Business
Philosophy and Business Creed. The company will further enhance these activities in accordance with international
CSR norms and standards.
By pursuing closer communications with stakeholders and by reflecting the expectations and requests of society in
our management reforms, Sharp is committed to conducting ever more effective CSR activities.
We sincerely ask for your continued support.
Sharp Sustainability Report 2014
[ Philosophies, Policies, Strategies ]
Policy on CSR Activities
System to Promote CSR
Structure to Promote CSR Policies and Measures Company-Wide
Sharp holds quarterly meetings of the CSR/Compliance Committee to discuss and decide on important measures
for the entire company. These meetings are chaired by Sharp's president and attended by chief officers in charge of
the business groups and by relevant officers of the Corporate Management Group. The work of this committee
serves to complement the business execution functions of Sharp.
In addition, Sharp has established the CSR Promotion Unit, which is tasked with promoting CSR policies and
measures and which falls under the control of the executive officer in charge of legal affairs. The CSR Promotion
Unit collects and analyzes information on domestic and overseas trends in CSR, and it works in collaboration with
relevant units/divisions to implement important measures that are discussed by the CSR/Compliance Committee.
Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct
Sharp's CSR activities are founded on having all Sharp Group companies
and their directors and employees comply with rules and regulations and
practice corporate ethics—in other words, act appropriately and in a sincere
manner. It is with this in mind that Sharp established the Sharp Group
Charter of Corporate Behavior, the principles of corporate behavior of all
Sharp Group companies; and the Sharp Code of Conduct, the standards of
conduct for all directors and employees.
The Boards of Directors of Sharp Group companies around the world passed
resolutions to adopt the Charter of Corporate Behavior and Code of Conduct,
and Sharp is working to thoroughly communicate their content through
internal notices, pamphlets, and training.
A leaflet on the Sharp Group Charter of
Corporate Behavior and Sharp Code of
In fiscal 2013, Sharp held online training on the Code of Conduct for all
directors and employees in Japan.
The Charter of Corporate Behavior and Code of Conduct are reviewed as appropriate to accommodate changes in
the business environment, including changes in the nature of what society and stakeholders expect of companies.
The revisions also reflect changes to existing laws and the enactment of new ones.
Related information:
Sharp Group Charter of Corporate Behavior
Sharp Code of Conduct
ISO 26000 and the United Nations Global Compact
Sharp is pursuing CSR activities by making full use of international guidelines
such as the United Nations Global Compact, the OECD Guidelines for
Multinational Enterprises, and ISO 26000, an international standard providing
guidance on social responsibility.
Sharp became a participant in the Global Compact in June 2009. Since then
it has been implementing measures to support the 10 principles of the Global Compact in the areas of human
rights, labor, the environment, and anti-corruption.
Sharp will expand and continuously improve its CSR measures in Japan and overseas to provide effective solutions
to various social problems, such as labor issues in developing countries and human rights violations in conflict-torn
ISO 26000 Content Index
United Nations Global Compact 10 Content Index
Related information:
United Nations Global Compact
Global Compact Japan Network
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Sharp Sustainability Report 2014
[ Philosophies, Policies, Strategies ]
Management Strategy and CSR
Sharp Management Strategy and CSR
At Sharp, corporate management is based on the Business Philosophy, which states that we "contribute to the
culture, benefits and welfare of people throughout the world" and "grow hand-in-hand with our employees," and that
"Our future prosperity is directly linked to the prosperity of our customers, dealers and shareholders." Sharp also
believes that it can best make a contribution to society by incorporating the "Sincerity and Creativity" of its Business
Creed into all the work that it does.
Through the technology it has built up and the business expansion that exemplifies its unique focus, Sharp solves
problems for both society and individual users, thus contributing to society and achieving medium- and long-term
growth for the company.
Fiscal 2013–2015 Medium-Term Management Plan: Recovery and Growth
In May 2013, Sharp formulated its medium-term management plan, under which it aims to become a 'new Sharp'
that achieves stable growth in profits and steady cash flow and brings people worldwide new value and joy. Sharp
defines fiscal 2013, the first year of the plan, as a restructuring stage, and fiscal 2014 and beyond as a re-growth
stage. The medium-term management plan incorporates the following three basic strategies and five priority
Basic Strategies of Medium-Term Management Plan
1. Shift to advantageous markets and fields
2. Exit closed innovation and aggressively utilize alliances
3. Enforce execution by innovating governance system
5 Priority Measures
(1) Restructuring the business portfolio
(2) Improving the profitability of the LCD business
(3) Expanding overseas businesses, focusing on the ASEAN market
(4) Reducing fixed costs by reforming company-wide cost structure
(5) Improving financial position
Basic Strategies of Medium-Term Management Plan and Positioning for Fiscal 2014
In fiscal 2014, Sharp is stepping up efforts to boost its systems to achieve re-growth.
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Sharp Sustainability Report 2014
Actions Taken in Fiscal 2013
Fiscal 2013 was a year of restructuring and preparation for re-growth. The entire company worked together to
reduce fixed costs, restructure its business, and create new products and new businesses. As a result of these
efforts, Sharp successfully achieved a net income surplus.
Rather than resting on its laurels, in fiscal 2014 and 2015 Sharp will work towards steady business recovery and
build a solid foundation for 'today' *1, while at the same time working towards building a strong 'tomorrow' *1 and the
'day after tomorrow' *1 as it transforms itself into a truly sustainable company.
*1 'Today' means fiscal 2014 and 2015, 'tomorrow' means fiscal 2016 and beyond, and the 'day after tomorrow' means the direction we
want our business to take in the long term.
Message from the Group General Manager, Corporate Management Group
Strengthen Governance to Achieve Stable Growth
I believe that it is Sharp's responsibility to respond to the hopes
and expectations of all stakeholders, including our customers,
business partners, and subcontractors.
To this end, we have been working hard on the pressing task of
revamping our management foundation, and in fiscal 2013 this
work paid off as we got back into the black for the first time in three
years. We will continue strengthening our management foundation
so that we can achieve our announced profit targets and pay
dividends to the shareholders who have invested in Sharp. As
well, we will strive to once again achieve an investment-grade
rating so that we can regain the public's confidence and procure
funding from the market. Along with improving our financial
situation, we are also aiming to contribute to society by solving
problems through Sharp's one-of-a-kind creation of products.
In business operations, it is crucial that we focus on stable management and growth, and to this end we will
improve our various risk management capabilities and strengthen our decision-making for business operations; in
other words, our governance system.
Besides having an audit and supervisory board, Sharp will review the workings of the Compensation Committee
and Nominating Committee under the Board of Directors to ensure transparent and stronger functions for objective
monitoring. For example, we increased the number of outside directors and auditors, and appointed outside
directors to be the chairpersons of the Compensation Committee and Nominating Committee.
We are also reforming our corporate culture. This is because we believe it is important that all Sharp directors and
employees make decisions and take action based on accepted social norms. In the past year, we have called upon
all employees to make decisions and take action based on accepted social norms, and we have provided
opportunities for opinion exchange and discussion on this topic. Having employees make proper decisions and take
proper action will boost their motivation and independence, and this will give them firsthand experience of what it's
like to grow as one with the company.
Our biggest responsibility is to rebuild our management foundation and carry out stable, growth-oriented business
operations so that we can regain the confidence of the market and be a company that is needed by society.
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Sharp Sustainability Report 2014
Sharp's Direction: Help Solve Problems Faced by People around the World
Today's world faces numerous challenges. In industrialized countries, populations are decreasing and aging,
accompanied by mental and physical health problems as people become more aware of the importance of quality
of life. Emerging countries, meanwhile, are grappling with pressing problems such as how to build sustainable
societies and how to raise the standard of living of the BOP*2 class.
Whether you live in an industrialized country or an emerging country, you want to attain 'the good life'. But the good
life requires both security and enjoyment; neither should be pursued solely on its own. Sharp aims to provide value
that helps people achieve the good life, and to this end it will strive to contribute both to people's security and
*2 BOP: Base of the pyramid; the lowest income earners in newly emerging countries.
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Sharp Sustainability Report 2014
Expanding New Business Fields
Sharp has striven to give people an enjoyable daily life through the provision of products such as image and
information products including 4K TVs and smartphones, and food-related items like Healsio Ocha-Presso tea
machines, Healsio Juice-Presso slow juicers, and Healsio rice cookers. Sharp has sought to provide security
through Plasmacluster air purifiers and Healsio Water Ovens (superheated steam ovens) that put people at ease
with clean air and healthy food, as well as solar power systems that provide energy security through renewable
energy use.
As a first step in providing value towards the achievement of the
good life, in fiscal 2013 Sharp began expanding business in five
new fields. The company has already come up with some
promising products in these fields; for example, the Microbe
Sensor, which was released in October 2013 and was awarded
the 10 Best New Products Awards "Nippon Brand" Prize in 2013,
sponsored by Nikkan Kogyo Shimbun in Japan.
Sharp will continue to advance its technologies so that it can bring
customers the good life they desire.
Award-winning BM-300C microbe sensor
At the 10 Best New Products Awards ceremony
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Sharp Sustainability Report 2014
Message from the Chief Technology Officer
Discover New Possibilities and Give Them Form—That's the
Sharp Way
I believe that people expect Sharp to discover new possibilities
and make these into products for the market. Looking back, it was
Sharp that first brought the world amazing images on LCD TVs, a
product that today accounts for the majority of worldwide TV
demand. And equipping mobile phones with LCD screens and
cameras dramatically expanded the world of possibilities for
At Sharp, 'the good life' is the phrase we use to describe the value
we provide to meet society's hopes and expectations. Our goal is
to contribute to the good life for people around the world through
our existing businesses and through five new business areas—(1)
healthcare/medical services, (2) robotics, (3) smart home/mobility
/office, (4) safety and security of food/air/water, and (5)
education—as well as a sixth, innovative products. I believe it is the mission of our development divisions to come
up with the technologies and services that make our goal a reality.
In the area of healthcare and medical services, we focus on the three areas of healthcare and health management
support, state-of-the-art medical R&D support, and initial diagnosis support. For example, in our health cockpit
concept, users needn't go to a hospital for medical checkups: they simply sit down and have their vital signs
measured—pulse, weight, blood pressure, obesity rate, body fat ratio—and then sent to the cloud for diagnosis.
In robotics, we are expanding business through the three focus areas of service robots, manufacturing robots, and
communications robots. We already have a vacuum cleaner on the market with built-in communication functions,
and we plan to come out with security guard robots, commercial cleaning robots, and robots that help elderly
people walk safely.
In safety and security of food/air/water, we want to use Sharp technology to solve food safety problems and air
concerns such as PM 2.5. We have had Plasmacluster Ion products on the market for some time now that
inactivate airborne bacteria and mold, and we are currently developing innovations such as a PM 2.5 sensor and a
microbe sensor that counts the volume of airborne microbes to show the danger of polluted air. Before this product,
it took about a week to show the level of microbes counted in the air, making it difficult to usefully apply this data.
Sharp's microbe sensor takes just 10 minutes to measure the amount of airborne microbes. Food processing
companies are already inquiring about this product as an effective way to conduct real-time monitoring of the level
of microbes in the air.
Although Sharp's business fields span the entire spectrum—devices to finished goods, services, B2B, B2C—our
business is always focused on people and their lifestyles. We constantly strive to provide value through our
products and services with the aim of contributing to the good life.
Increasing Green Shared Value
In emerging countries as well as in industrialized countries, social problems are coming to the fore as citizens seek
a better life through economic growth.
Environmental problems are particularly prevalent, as large-scale use of the energy and resources that support
people's lives is upsetting the world's environmental balance and intensifying worldwide problems like global
warming, resource depletion, and biodiversity loss, and making it imperative that society solve these pressing
Sharp has over the years created many environmentally friendly products, and it has a wealth of energy-saving and
energy-creating environmental technologies that can solve the world's problems.
Besides striving to reduce the environmental impact of its business activities, Sharp is using these environmental
technologies to further improve on its energy-saving and energy-creating products. To clarify and solidify this
direction, Sharp has defined a policy of increasing what it calls 'Green Shared Value', and this policy is the basis of
the company's efforts to make products that meet society's needs.
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Sharp Sustainability Report 2014
Message from the Division General Manager, CS and Environmental Promotion Division
Increase Green Shared Value to Be a Company Needed by
In 2014, the IPCC*3 released a report saying that greenhouse gas
(GHG) emissions must be reduced by 40 to 70% over 2010 levels
if we are to prevent the Earth's temperature from rising further. The
report adds that to achieve this we must make low-carbon energy
sources account for at least 80% of the energy mix.
Under our environmental policy of creating and increasing Green
Shared Value by fusing our business activities and our contribution
to a low-carbon society, we are raising environmental performance
throughout the entire supply chain. We have made it a goal to
make the positive impact of our avoidance of GHG emissions
more than balance out the negative impact of GHG emissions from
our business activities. In fiscal 2013, we achieved this goal.
To ensure that we continue to achieve this goal by increasing our positive impact, we are spreading the use of
low-carbon energy by continuing to provide the market with solar power systems that utilize our more than 50 years
of experience and technological expertise.
As well, to reduce the negative impact, we are constantly creating products with greater energy efficiency that
reduce the amount of energy that people need to consume to enjoy a comfortable life.
Reducing carbon emissions in terms of both energy supply and energy consumption means that we not only boost
the environmental performance of our business; it also means that we contribute to the IPCC's target of a
low-carbon society.
*3 IPCC: Intergovernmental Panel on Climate Change
Visit this link to read about Green Shared Value (GSV).
Environmental Policy
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Sharp Sustainability Report 2014
[ Environmental Policy ]
Increasing Green Shared Value
Sharp places the fulfillment of society's needs regarding environmental matters in close alignment with its strategy
for business growth, with a view to achieving success in both areas. Sharp defines the value thus created as
"Green Shared Value" and it has established an environmental policy of maximizing this value.
In an effort to foster a low-carbon society—a key environmental goal for all—Sharp is controlling its greenhouse gas
(GHG) emissions in conformity with the GHG Protocol Corporate Value Chain (Scope 3) Standard. This covers
emissions not only in product manufacture, where reduction of GHG emissions is required by law, but also
throughout the entire supply chain, from materials procurement to product use.
With a view to increasing Green Shared Value, Sharp is furthering its environmental initiatives by striving always to
make the positive impact of its avoidance of GHG emissions—achieved through customer use of energy-creating
and energy-saving Sharp products—more than balance out the negative impact of GHG emissions from its
business activities.
Visit this link to read a message from the Division General Manager of the CS and Environmental Promotion
Management Strategy and CSR
Achievements for Fiscal 2013
In fiscal 2013, Sharp's "positive impact" (i.e., avoided GHG emissions) was 30 million tons CO2, up 30% over the
previous fiscal year. This was due to factors as a large growth in solar power system sales. Meanwhile, the
company's "negative impact" (i.e., GHG emissions) increased by 11% over the previous fiscal year to 20 million
tons CO2. This was due to factors as increased demand for home appliances in Southeast Asia and a surge in
sales in Japan prior to a consumption tax hike there. Note that Sharp is steadily reducing the amount of GHG
emitted by customer use of its products by developing products with superb energy efficiency, such as large-screen
As a result, the GSV index (the ratio of positive impact to negative impact) increased to 1.5 (i.e., 30 million tons
CO2 divided by 20 million tons CO2).
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Sharp Sustainability Report 2014
See calculation method
See calculation method
For fiscal 2014 and beyond, Sharp will strive both to grow its business and to increase the amount of avoided GHG
emissions. Sharp aims to increase Green Shared Value by reducing GHG emissions across the entire supply chain
and by developing more energy-saving products and expanding the use of solar power systems.
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Sharp Sustainability Report 2014
Challenge for the Year 2020
Sharp is further advancing its environmental efforts so that its GSV index—the ratio of its positive impact to its
negative impact—will constantly be 1.0 or higher for each year. It will also maximize business efficiency by the year
2020, when the Kyoto Protocol's second commitment period ends, so as to establish a company structure that will
allow Sharp to maintain a GSV index of 1.5 or higher.
― 19 ―
Sharp Sustainability Report 2014
Objectives and Achievements in CSR
Under its Business Philosophy and Business Creed, Sharp is establishing priority action themes in the managerial,
environmental, and social dimensions of CSR and is putting them into action while communicating with various
stakeholders in Sharp's business activities. The aims are to offer innovations through business activities, to
harmonize with society, to collaborate with partners, to create and innovate corporate culture, and to fulfill basic
social responsibilities.
Follow the links below to read about achievements for fiscal 2013 and future priority objectives.
Objectives and Achievements in the Area of Management
Environmental Objectives and Achievements
Objectives and Achievements in the Social Dimension of CSR
― 20 ―
Sharp Sustainability Report 2014
[ Objectives and Achievements in CSR ]
Objectives and Achievements in the Area of Management
Fiscal 2013 Achievement Summary
In fiscal 2013, Sharp continued to improve its corporate governance system and took steps to ensure the stable
operation of the company's internal control system. Sharp also conducted an ongoing series of training and
educational activities in Japan and overseas in the area of compliance. Sharp also pushed forward with ongoing
efforts to improve specific management-related areas by, for example, reviewing priority risks and implementing risk
management based on a PDCA cycle and strengthening information security measures.
Objectives and Achievements for Fiscal 2013
* Self evaluation: ◎ Achieved more than targeted / ◯ Achieved as targeted / △ Achieved to some extent
Priority Themes
Fiscal 2013 Objectives
Fiscal 2013 Achievements
Reviewed operation of
Executive Management
Meeting to enhance rapid
Further improve
Reinforce corporate governance
transparency, objectivity, and
soundness in management
decision-making and
soundness in management;
strengthened management
by introducing Business
Group system to match the
characteristics of each
Continuously put into practice
various policies related to
Develop, maintain, operate, and
assess internal control system
internal control system and
mount intensive efforts to
resolve important items
(problem items) in each
internal control area
Review systems for promoting
Strengthen business risk
Practice compliance in business
Strengthen measures for
maintaining confidentiality and
information security
Respond to new social
challenges associated with
Completed various policies
related to internal control
system as initially scheduled
Reviewed policies, mounted
intensive efforts to resolve
important items (problem
items), and submitted Internal
Control System Report
(information disclosure) (June
Studied and promoted priority
measures in line with
international guidelines, such
global business development
as ISO 26000, with relevant
Ongoing review of priority
risks and implementation of
risk management based on
Reviewed priority risks and
implemented risk
management based on
PDCA cycle
PDCA cycle
Ongoing compliance training
for employees in Japan and
Implemented compliance
training for employees in
Japan and abroad
Conduct web application
Conducted regular web
penetration tests of publicly
accessible websites
application penetration tests
Centralize and unify
management of such
company-wide cloud
environment to consolidate
― 21 ―
Gradually migrated to
Sharp Sustainability Report 2014
Strengthen personal information
protection system
Ongoing implementation of
Implemented regular internal
internal audits related to
protecting personal
audits related to protecting
personal information
Ongoing implementation of
education and awareness
education and awareness
policies (e-learning) related to
policies related to protecting
personal information for
employees and others
protecting personal
information for employees and
Implemented continuous
Fiscal 2014 Objectives
Priority Themes
Fiscal 2014 Objectives
Reinforce corporate
Augment Business Group system to strengthen business execution power; reform
Board of Directors system to strengthen control functions
Develop, maintain, operate,
and assess internal control
Continuously put into practice various policies related to internal control system and
mount intensive efforts to resolve important items (problem items)
Complete various policies related to internal control system (30 items) as
Submit Internal Control System Report in June 2015
Establish system for promoting CSR activities group-wide
Review systems for
promoting CSR
Review activities conducted in line with 7 major themes covered by ISO 26000,
grasp current situation, identify problems, and implement priority measures
Ongoing review of priority risks and implementation of risk management based on
Strengthen business risk
Practice compliance in
PDCA cycle
Strengthen risk management for overseas subsidiaries
Conduct compliance training
Construct framework for group-wide information control and promote measures to
resolve various issues
Promote information
management measures
Centralize and unify management of publicly accessible websites
Conduct training to deal with advanced persistent threats
Institute group-wide digital document management system and paperless
teleconference system
― 22 ―
Sharp Sustainability Report 2014
[ Objectives and Achievements in CSR ]
Environmental Objectives and Achievements
Fiscal 2013 Achievement Summary
In fiscal 2013, Sharp set objectives and implemented measures at each stage of its business operations to reduce
the environmental burden across the entire supply chain. This was in line with its environmental policy of increasing
Green Shared Value (GSV). In the area of "Developing environmentally conscious products and devices," Sharp
focused on creating Super Green Products (SGP) that meet its certification criteria centered on energy efficiency, a
feature much sought after by consumers. As a result, 67 product models were certified as SGP. In the area of
"Curbing greenhouse gas emissions," Sharp was able to improve specific energy consumption rates in Japan and
overseas as a result of intensive efforts applied to all equipment and systems—ranging from production equipment
to utility systems.
For fiscal 2014 and beyond, Sharp will push forward with measures that enable the company to increase its GSV.
Objectives and Achievements for Fiscal 2013
*1 Self evaluation: ◎ Achieved more than targeted / ◯ Achieved as targeted / △ Achieved to some extent
Priority Themes
that contribute
to a
Fiscal 2013 Objectives
Expand scope of plastic
material recycling
technology (practical
application of
Develop practical
application technology for
synthesizing zeolite from
waste LCD panel glass
Super Green Products
products and
products and
3 or more products
certified in each product
Fiscal 2013 Achievements
Developed recycling
technology for new material
(PC+ABS) and put it to
practical use
Developed practical
application technology for
synthesizing zeolite from
waste LCD panel glass (on a
kilogram scale)
3 or more products certified
in each product category:
AV (5); communications
(14); home appliances (31);
solar (4);
(13)—total of 67 models
Increase Green Devices'
share of net sales
Improved by average 4.7%
Improved by 13% over
fiscal 2012 levels
To 95%
Japan: Specific energy
consumption rate
Improve by average 1%
greenhouse gas
each year (average for
fiscal 2009 to 2013)
Overseas: Specific energy
consumption rate
Improve over fiscal 2012
CO2 emissions per
shipping volume (Japan)
Reduce by average 1%
each year (average for
fiscal 2009 to 2013)
― 23 ―
Reduced by average 4%
(average for fiscal 2009 to
Sharp Sustainability Report 2014
Reduced recycling costs by
Reduce recycling costs
Expanding the
recycling of
used products
reusing urethane insulation
material as blast-furnace
reducing agent and for thermal
Formulate collection
scheme for used solar
Studied collection patterns
*2 A polymer alloy of polycarbonate and acrylonitrile, butadiene, and styrene (a macromolecular material given new properties as a result of
mixing in several types of polymers).
Objectives for Fiscal 2014 and Beyond
Priority Themes
Fiscal 2014 Objectives
Fiscal 2016 Objectives
Super Green Products (Japan):
products and
Certify 65 or more products
Green Device Challenge Points:
Achieve an average of 45 points
Achieve an average of 55 points
or more (criteria and evaluation
content to be revised each year)
for all devices
or more (evaluation items to be
revised each year) for all devices
Japan: Specific energy consumption
greenhouse gas
Certify 65 or more products
Improve by average 1% each
year (average for fiscal 2010 to
Improve by average 1% each
year (average for fiscal 2012 to
Overseas: Specific energy
consumption rate
Improve over fiscal 2013 levels
Expanding the
recycling of
used products
that contribute
to a sustainable,
CO2 emissions per shipping volume
Reduce by average 1% each
year (average for fiscal 2010 to
Improve over average of last 3
years (fiscal 2013 to 2015)
Reduce by average 1% each
year (average for fiscal 2012 to
Improve recycling efficiency
Construct high-efficiency recycling
Increase amount of recyclable waste
plastic through cooperation among
recycling plants and raise sorting
line in anticipation of an increase in
flat-panel TVs sent to recycling;
reduce time required
accuracy (boost value)
Formulate processing technology
Formulate collection/recycling
scheme for used solar panels (joint
plan for used solar panels
Develop technology for adding extra
value to recycled plastic materials
Develop new material based on
plastic material recycling technology
Start experiment to verify water
purification effects of Sharpdeveloped zeolite
Assess water purification effects of
Sharp-developed zeolite through
verification experiments
― 24 ―
Sharp Sustainability Report 2014
[ Objectives and Achievements ]
Objectives and Achievements in the Social Dimension of CSR
Overall Results of CSR Efforts in Fiscal 2013
Sharp always conducts manufacturing, marketing, and service with the customer in mind. In areas such as
developing global personnel and conducting social action programs at the local level in Japan and abroad, Sharp
carries on in the spirit of its founder in activities such as helping the disabled gain independence and become
valued members of society. In this way, Sharp was active and productive.
The special themes for fiscal 2013 and the important themes and targets for fiscal 2014 are divided by stakeholder
Objectives and Achievements for Fiscal 2013
* Self evaluation:◎ Results exceeded objectives/◯ Results met objectives/△ Certain results were accomplished
Important Themes
Objectives for Fiscal 2013
Achievements for Fiscal 2013
Improved global quality and
customer satisfaction
Improve global quality and
customer satisfaction
Secure quality
and safety
Proposed global
knowledge system at
overseas call centers
(China, India)
Expand global knowledge
system at overseas bases
Introduced new global
quality human resource
Extend global quality
human resource education
system to ASEAN bases
education system to 6
bases in China and 8
bases in ASEAN,
conducted quality
techniques training
(cumulative total of 714
Improved quality and service
Improve quality and service
from the customer's point of
from the customer's point of
Create products
Innovate consultation
Restructured curriculum for
teaching consultation and
response methods
that are easier
to use
system in Japan and
improve response levels
Held CS exchange
meetings in all 7 blocks in
Promote development of
global quality and service
For Customers
Built a quality and service
management training
system for overseas
service managers
For Business
Promote CSR
across entire
supply chain
Increase customer
satisfaction by enhancing
service capabilities and
Increased customer
satisfaction by enhancing
service capabilities and
customer response skills
customer response skills
Strengthen service
Held an air conditioner
management capabilities in
ASEAN region
technical training session
in Malaysia
Increase service
capabilities of employees
dispatched overseas
Introduced training
curriculum for employees
dispatched overseas
Train auditors using CSR
procurement auditing tools
and transfer the management
of audit structure to each
― 25 ―
Completed revision of tools
for CSR procurement auditors
Sharp Sustainability Report 2014
and Investors
and investors
Continue improving information
disclosure and strengthen
information transmission for
Sharp had a large meeting
headed by the President at a
conference held by a securities
shareholders and investors
Restructured human resource
development program
Conducted following three
programs for training
management personnel who
can support growth for the
next generation (Sharp
To build a globally competitive
HR development program that
aligns with the business
Re-build human
To educate executive
managers who will lead the
next generation to growth
To nurture professional
talent strategically for future
To take measures to
motivate junior employees
Leadership Program)
1. Next Leader Program
for selected young
2. Professional Business
Leader Program (new)
for management
3. Executive Business
Leader Program (new)
for executive candidates
New Business Creation
Human Resource
Development Program, to
give participants knowledge
and skills necessary to
create new business; will
start in December
Group training held for 3rd
and 4th year employees on
career formation and
team-building (444
For Employees
Improve environment for
diversity inclusion (acceptance
of diversity)
Increase employment of
female employees; surpass
previous year's percentage
of female employees
Maintain 2.2% employment
rate for the physically or
mentally challenged
Create a safe and healthy
Promote safety
and health and
physical fitness
Improved environment for
diversity inclusion (acceptance
of diversity)
Employment rate of female
employees 9.6% as of April
1, 2014 (9.5% 2013)
physically or mentally
challenged in fiscal 2013
with rate of 2.29%
Created a safe and healthy
Improve occupational safety
and health management
Unified and improved the
level of occupational safety
systems at production sites
in Japan; fully implement
Sharp's own occupational
and health at production
sites in Japan through
sharing of information,
safety and health
management system
covering non-production
model case studies, and
accident prevention
sites and affiliates in Japan
Created and put into
operation a system for
surveying workplace risks
Systematically introduce
occupational safety and
health management system
at overseas production sites
Enhance comprehensive
mental health measures for
primary, secondary, and
tertiary prevention of mental
― 26 ―
Maintained 2.2%
employment rate for the
inherent in work processes
at non-production sites and
Checked progress and
followed up on occupational
Sharp Sustainability Report 2014
safety and health
management systems
introduced at overseas
production sites
Promoted various types of
mental health measures; for
example, encouraged
employees to get
certification as workplace
mental health advisors, and
encouraged employees
experiencing stress to take
training/therapy to deal with
and biodiversity
About 800 events held (up 8%
Continue local social action
programs, including efforts to
protect the environment and
over previous year); total of
about 18,800 participants,
including employee family
members (up 3% over previous
Continued educational support
Held environmental
education classes for a total
of about 10,300 pupils at
For Local
Continue educational support
activities that enlighten children
on global environmental issues
and increase their interest in
about 190 elementary
schools in Japan and
Held product making
education classes, and
career education classes
conducted by a special
Sharp subsidiary for
students of special needs
schools; total of about 4,400
activities to
support persons
with disabilities
Carry on the spirit of Sharp's
founder by continuing activities
that help persons with
disabilities achieve
self-sufficiency and become
valued members of society
― 27 ―
Provided sales opportunities to
about 370 social welfare
facilities (up 30% over previous
Sharp Sustainability Report 2014
Objectives for Fiscal 2014
Important Themes
Objectives for Fiscal 2014
Improve global quality and customer satisfaction
Japan: Restructure CS human resource
development system (enhance quality and service
Secure quality and safety
capabilities, build a system for CS awareness
training, improve CS management training)
Overseas: Strengthen human resource development
training to fit local needs
Improve quality and service from the customer's point
For Customers
of view
Create products that are
easier to use
Make market quality information easier to see so
that it can be analyzed and fed back to the design,
development, and production divisions
Increase customer satisfaction by enhancing service
capabilities and customer response skills
Improve customer
For Business Partners
Promote measures to raise CS awareness in the
ASEAN region
Promote CSR across entire
supply chain
Introduce and develop an effective auditing structure,
which includes ties with external auditing organization
Strengthen information transmission by paying more
visits to overseas investors
For Shareholders and
Improve communication with
shareholders and investors
Sharp executives normally make 3 visits a year to
institutional investors in North America, Europe, and
Asia, but this will be increased to 5 times in fiscal
Strengthen human resource development measures
with a view to Sharp's future (recovery and growth)
Nurture future executives
Develop human resources
Boost the management capabilities of managerial
Strengthen the ability to create new business and
new markets by tying in with business models
Strengthen efforts at diversity inclusion (acceptance of
Maintain 2.3% employment rate for the physically or
mentally challenged
Develop diversity
Strengthen and promote measures to raise the
percentage of female managers to 5% by fiscal
For Employees
Create a safe, stress-free, and healthy workplace
Reduce work accidents, equipment and
environmental accidents, and company car
Promote safety and health,
and physical fitness
To reduce mental problems and illnesses,
strengthen and promote measures to deal with their
possible causes, such as long work hours and
power harassment
Make "Healthy Sharp 23" (name of program with
targets and measures for employee health by the
end of 2023) an integral part of the workplace, build
systems and promote concrete measures
― 28 ―
Sharp Sustainability Report 2014
Continue local social action programs, including efforts
Continue environmental and
biodiversity protection
to protect the environment and biodiversity
Maintain fiscal 2013 levels of participation by
employees in action programs
Continue educational support activities that enlighten
For Local Communities
children on global environmental issues and increase
their interest in science, and educational support
activities that nurture their desire for a career
Continue educational
support activities
Continue activities to
support persons with
Provide sales opportunities to the same number of
social welfare facilities as in fiscal 2013
― 29 ―
Sharp Sustainability Report 2014
[ Management ]
Corporate Governance / Internal Control
Sharp is working to improve corporate governance functions while strengthening its director/audit and supervisory
board system. These efforts have included appointing outside directors, speeding up managerial decisions by
separating supervisory and decision-making functions from business execution functions based on an executive
officer system, and establishing the Internal Audit Unit as an organization that works with the Audit and Supervisory
Board to provide oversight and maintain a rein on management.
In fiscal 2014 (effective as of June 25), Sharp increased the number of outside directors to three in an effort to
boost the transparency of management.
Corporate Governance
Basic Concept
Sharp's basic policy on corporate governance is to maximize corporate value through timely and appropriate
management while ensuring transparency, objectivity, and soundness supported by the concept, "Our future
prosperity is directly linked to the prosperity of our customers, dealers and shareholders..." as stated in the
company's Business Philosophy.
This is why Sharp appoints to its Board of Directors outside members who have an international and multi-faceted
perspective on such matters as compliance and on such wide-ranging issues as the social and economic
environment and the future direction of Sharp. In doing so, Sharp has strengthened both the decision-making
functions within the Board of Directors and the functions for supervising the directors' execution of their duties.
Sharp has also introduced an executive officer system that clearly separates supervisory and important decisionmaking functions from business execution functions, thereby creating a structure that steadily facilitates nimble and
efficient business execution. In fiscal 2013, Sharp introduced the Business Group system to match the
characteristics of each business as part of an effort to transform the organization into one that consolidates
development, production, and sales.
As for the Audit and Supervisory Board, Sharp appoints outside auditors with a high degree of independence to
monitor and hold management in check. Through these measures, Sharp is strengthening corporate governance.
In addition, Sharp has formulated the Sharp Group Charter of Corporate Behavior as action guidelines for all
directors, Audit and Supervisory Board members, executive officers, and employees to raise their awareness of
compliance, and it is working for its permeation across the entire Sharp Group.
Status of Corporate Governance System
Sharp Corporation Board of Directors Meetings are held on a monthly basis to make decisions on matters
stipulated by law and on management-related matters of importance, and to supervise the state of business
execution. To improve management agility and flexibility and to clarify the responsibilities of the company
management during each accounting period, the term of office for members of the Board of Directors is set at one
In addition to the Board of Directors, the company has the Executive Management Meeting, where matters of
importance related to corporate management and business operation are discussed and reported.
The Audit and Supervisory Board formulates audit policies, listens to reports from accounting auditors, and receives
reports on the execution of duties, in particular from the Board of Directors. Audit and Supervisory Board members
also exchange information and opinions on such matters as the progress of deliberations of important meetings and
auditing (on-site auditing) results, which increases the validity of audits.
― 30 ―
Sharp Sustainability Report 2014
* As of July 2014
Remuneration to and Evaluation of Directors
Monthly remuneration and bonuses are determined within the scope of the total remuneration as set forth in a
resolution adopted at a general shareholders' meeting. They are decided in a fair manner by the Compensation
Committee, which includes outside directors, taking into consideration the individual's performance, degree of
contribution, and other factors.
The remuneration paid to directors and Audit and Supervisory Board members in fiscal 2013 was as follows.
Total amount of remuneration
Directors (excluding outside directors)
232 million yen
Audit and Supervisory Board members (excluding outside board members)
22 million yen
Outside board members (outside directors and Audit and Supervisory Board
51 million yen
1. The above figures include the amount of remuneration for the relevant fiscal year paid to the seven directors whose resignations took
effect at the end of the 119th ordinary general shareholders' meeting. Board member bonuses were not paid in fiscal 2013.
2. No Sharp executive received more than 100 million yen in remuneration.
eS-SEM Strategic Management System
In fiscal 2004, Sharp introduced its own strategic management system (eS-SEM) using the balanced scorecard
method. The goal of eS-SEM is to improve the performance of the organization and individuals by balancing the
strategy of an organization from both financial and non-financial perspectives and breaking down company-wide
organizational goals to the level of the individual, thereby improving the effectiveness of objectives. The system is
revised every fiscal year based on the business environment to ensure that the results obtained are in line with
company-wide strategies. In fiscal 2013, Sharp introduced the Challenge Goal system in an effort to create a
corporate culture conducive to taking on new challenges.
― 31 ―
Sharp Sustainability Report 2014
Message from an Outside Director
For companies to achieve sustainable development, it is crucial that they are needed by society and that they
continuously contribute to society. It is therefore important that they strengthen corporate activities in terms of not
only economic dimensions but also environmental and social dimensions.
The electronics industry is one that can contribute to society. Sharp has a long history of contributing to society
through new technologies and products—always developed with the customer in mind—that bring new
convenience to customers. I hope to see Sharp continue to fulfill its corporate responsibility and respond to all
stakeholder expectations, including those of shareholders, customers, and employees.
Last fiscal year, in spite of a tough business environment, Sharp was able to meet its objectives for the first year of
its mid-term management plan, and it is seeing an upward growth in business results. My wish is for Sharp to not
be nearsighted—to confidently look ahead in technology and marketing, establish a direction for the future, and
pave the way for new growth. I would like to see Sharp take on new challenges—with a global perspective—not
only in existing business areas but also in various new fields. And I hope that Sharp will be the kind of company
society needs, a sustainable company that conducts business in a fair and honest manner.
I myself have had many experiences in business management during my time at a trading company. As an outside
director, I hope to fulfill my role of overseeing Sharp's management operations from an independent standpoint, and
I hope to use my experiences to contribute to Sharp's corporate activities to the greatest extent possible.
Career Overview
Director, Itochu Corporation
Representative Senior Managing Director, Itochu Corporation
Representative Executive Vice President, Itochu Corporation
Vice Chairman, Itochu Corporation
Corporate Senior Advisor, Itochu Corporation
Director, Sharp Corporation (current position)
Newly Appointed Outside Directors
Career Overview
Corporate Officer, Pharmaceuticals Group Tokyo Branch Manager,
Teijin Limited
Executive Officer, Pharmaceutical Sales Division Assistant General
Manager, Teijin Limited
Senior Executive Officer, Pharmaceuticals Group General Manager,
Teijin Limited
President, Teijin Pharma Limited
Executive Officer, Teijin Limited
Senior Executive Officer, Teijin Limited
President and CEO, Teijin Limited
Chairman, Teijin Limited
Director, Sharp Corporation
Career Overview
Public Prosecutor, Tokyo District Public Prosecutors Office
First Secretary, Japanese Embassy in the US
Director, International Affairs Division, Criminals Affairs Bureau,
Ministry of Justice
Director-General for Inspection, Minister's Secretariat, Ministry of
Foreign Affairs
Chief Public Prosecutor, Chiba District Public Prosecutors Office
Director-General, Public Security Intelligence Agency
Superintending Prosecutor, Sapporo High Public Prosecutors Office
Superintending Prosecutor, Osaka High Public Prosecutors Office
(retired in January 2014)
Registered as attorney; Special Counsel, Mori Hamada &
Director, Sharp Corporation
― 32 ―
Sharp Sustainability Report 2014
[ Management ]
Corporate Governance / Internal Control
Internal Control
Basic Policy for Internal Control and Maintaining the Internal Control System
As one way to ensure that its corporate governance is functioning effectively, Sharp is developing and maintaining
its internal control system to ensure that the entire Sharp Group engages in fair and appropriate business practices
based on the provisions of Japan's Companies Act and the Internal Control Reporting System under the Financial
Instruments and Exchange Act.
In response to the enactment of the Companies Act in 2006, the Board of Directors passed a resolution to adopt a
basic policy related to the development and maintenance of systems necessary to ensure the propriety of business
practices (Basic Policy for Internal Control), and the company is working to properly maintain and operate those
systems. In accordance with this policy, Sharp also established the Internal Control Committee to serve as an
advisory panel to complement the supervisory functions of the Board of Directors. The Internal Control Committee
discusses various policy measures related to the internal control system and affirms their operational status.
In fiscal 2013, Sharp continued its efforts to ensure that those policy measures firmly take root and that the internal
control system was generally being successfully maintained and properly operated.
At the same time, in response to the Financial Instruments and Exchange Act, the Sharp Group has been
evaluating the effectiveness of the internal control system in relation to financial reporting. It has also taken steps to
reduce various business risks through the sound operation of the internal control system. In fiscal 2013, Sharp
implemented various measures to boost the control functions of each internal control area as well as the efficiency
with which internal control system effectiveness is evaluated. Sharp also mounted intensive efforts to resolve
critically important items and submitted an Internal Control System Report in June 2014.
For fiscal 2014, Sharp will complete the various measures related to the internal control system within the
scheduled time frame and will mount intensive efforts to resolve critically important items (problem areas) in each
internal control area.
― 33 ―
Sharp Sustainability Report 2014
* As of July 2014
― 34 ―
Sharp Sustainability Report 2014
[ Management ]
Risk Management
Risk Management as Part of CSR
Sharp believes that it is indispensable for business enterprises to control and manage various risks surrounding
them in order to fulfill corporate social responsibility, which entails meeting the expectations of stakeholders through
the sustainable development of business. That is why Sharp makes it a priority to conduct BRM (business risk
management) as an integrated part of its CSR activities.
Functions of the CSR/Compliance Committee
The CSR/Compliance Committee holds quarterly meetings to regularly review major risks, deliberate on
company-wide BRM measures for dealing with them, and communicate those measures throughout the company.
In addition, the committee identifies major risks pertinent to Sharp's business and operations and then plans and
promotes measures to either prevent those risks or minimize their impact.
The CSR/Compliance Committee conducts risk management based on a PDCA cycle. The committee specifies
which priority items Sharp should tackle first, taking into consideration any risk incidents that have occurred within
the company as well as the measures drawn up by each group or division. The committee also clarifies the persons
responsible, provides a time frame for tackling those priority items, and then checks the progress being made.
Promoting BRM
Management Based on the Rules of Business Risk Management
Sharp has developed the Rules of Business Risk Management as a basic policy for the promotion of BRM and
controls its business risks based on these rules. In the Rules, risk items that could have a major impact on
management are identified as "specific risks." Sharp has also created a risk control manual and, for each specific
risk, has designated a business group or division to be responsible for risk management across the entire company.
Sharp is continuously moving forward with initiatives to minimize and optimize risks and to prevent risks from
actually occurring.
In addition, Sharp has established the Rules of Emergency Response, detailing responses if a major risk incident
does come to pass. Taking prompt and appropriate action when an emergency situation occurs works to minimize
loss and to prevent the damage from spreading not only across the company, but also to society at large. These
Rules also specify action items to be implemented to ensure prompt and appropriate information disclosure to
Sharp periodically reviews and revises these Rules and the manual to reflect changes in the business environment
by, for example, adding new specific risks.
Management Methods for Important Risks
From among the risks that Sharp has designated as specific, those that have a greater potential impact and a
higher probability of occurrence are selected as "priority risks," and they become the subject of intense focus in the
risk management activities of each group or division.
Each group or division continuously works to deal with these priority risks from the perspective of policy measures
to (1) reduce the likelihood of a risk occurring and (2) reduce the impact on business activities in the unlikely event
that a risk incident actually does occur.
For fiscal 2014, Sharp is focusing on measures aimed at strengthening risk management at its overseas
subsidiaries and at enhancing information management.
― 35 ―
Sharp Sustainability Report 2014
Promoting BCPs
Sharp is committed to continuously reviewing and improving BCPs (business continuity
plans) that assume the occurrence of major disasters, such as an earthquake or an
outbreak of a new strain of influenza. This effort is intended to ensure the safety of
employees and to expedite the continuation or early recovery of business when such
disasters occur. In fiscal 2013, Sharp formulated guidelines—such as the BCP basic
policy of Sharp group outlined below—for the appropriate planning, maintaining, and
managing of BCPs by the Sharp Group. Each Sharp business site and subsidiary
conducted voluntary reviews and training related to BCPs, and the progress made was
monitored on a company-wide basis through a PDCA cycle.
For fiscal 2014, Sharp will continue its PCDA cycle in the group-wide monitoring of BCP
reviews and training.
A BCP leaflet (sample)
BCP basic policy of Sharp group
(1) The basic BCP policy of Sharp group consists of the following 3 articles.
Article 1: First priority to human life
The most important business resource of our company is the "human resource", so the first priority is safety
of employees and their family at when large-scale disasters or infectious diseases, etc. occur. (safety effort,
evacuation, healing injuries, safety confirmation, etc.)
Article 2: Proactive program and program for recovery from disasters
Being aware that continuing to supply products and services even at the time of large scale disasters and
infectious diseases is one of the most important corporate social responsibilities (CSR), we will make a
proactive program to minimize the damage from infectious diseases, and construct a framework and system
to realize an adequate business continuity and rapid recovery from them.
Article 3: Support for local community and business connections
We will pay due consideration to our role, as demanded or expected by the local society of our place of
business, sections and group companies or in the supply chain. (Provision of emergency evacuation location
and stockpiles for local society, support for business connections to recover, etc.)
(2) In addition to the corporate-wide common basic policy stated above, each business group and company should consider
and make their own BCP policy.
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Sharp Sustainability Report 2014
[ Management ]
In strengthening its global business expansion, Sharp has been using the PDCA cycle to develop and improve its
compliance system for Sharp Corporation as well as for affiliated companies in Japan and overseas subsidiaries,
and it has been working to foster awareness of compliance on a global basis and promote the spread of this
awareness throughout the Sharp Group.
System to Promote Compliance
Basic Policy Regarding Compliance
Sharp defines compliance as "observing social codes of conduct and company regulations, including laws and
corporate ethics." Accordingly, Sharp is pursuing the ongoing development of systems and policy measures for the
implementation of management practices that give priority to compliance.
Strengthening the System to Promote Global Compliance
Sharp is working to strengthen its compliance and legal systems not only in Japan but also internationally to ensure
that compliance is integrated into all Sharp global management practices.
To strengthen compliance and legal systems in Japan, the Legal Unit at the Head Office holds regular meetings
with legal affairs chiefs and staff members for each Sharp Corporation business group and affiliated company of
Sharp Corporation in Japan. At these meetings, they discuss problems and case studies related to compliance and
legal affairs as part of an ongoing effort to establish a shared awareness of compliance issues.
In 2009, to strengthen its compliance and legal systems overseas, Sharp appointed a top management executive
from major regions overseas (such as the US, Europe, and China) to serve as a Compliance Officer (CO) and
appointed a legal affairs staff member in each region. To strengthen the compliance and legal functions in the
region as well as share information, the legal affairs appointees serve on the staff of their regional CO and work in
cooperation with every base in the region. The appointees also hold regular meetings with Sharp's Legal Unit at the
Head Office.
In support of these efforts to promote compliance in all regions of Japan and abroad, the CSR/Compliance
Committee, chaired by the Sharp president, regularly carries out the following activities: 1) discusses and confirms
how to raise awareness of compliance measures and how to thoroughly enforce them; and 2) prioritizes the order
of implementation for each measure and adjusts the schedule accordingly.
In fiscal 2014, Sharp will continue to work to improve and strengthen its system for dealing with compliance and
legal affairs.
Sharp Group Compliance System
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Sharp Sustainability Report 2014
[ Management ]
Putting Compliance into Practice
Raising Legal and Ethical Awareness to Ensure Compliance
In a social environment in which social responsibility is being subjected to ever more severe scrutiny, Sharp regards
the role of the corporation as not merely to pursue profits, but rather to sustain and continue business activities in a
way that places the highest priority on compliance. In this light, Sharp produced the Sharp Group Compliance
Guidebook as a how-to guide to ensure that each individual employee has a thorough understanding of the
meaning of compliance and how to put compliance into practice in their routine work activities. This guidebook is
distributed to all Sharp employees in Japan. Sharp uses training sessions, such as specialized training in specific
fields, as an opportunity to disseminate the contents of this guidebook and to raise awareness of compliance.
As its business expands even further globally, Sharp will continue to foster awareness of compliance and ensure
that this awareness permeates the entire Sharp Group. Sharp will do this by further expanding and improving its
efforts toward regulatory compliance so that business activities are carried out properly in accordance with
regulations that apply globally and with local laws and regulations.
Sharp has made antitrust laws in particular a priority area and is working constantly to ensure compliance with
them. In August 2013, the Japan Fair Trade Commission finalized its cease and desist order and surchage
payment order, both of which were issued in 2008 against Sharp regarding an alleged LCD module cartel. In
response to that, Sharp reorganized its existing Antimonopoly Act Manual and formulated the Antimonopoly Act
Compliance Manual (Action Guidelines). These guidelines serve to strengthen company-wide awareness of
compliance so as to prevent any repeat of such violations of the Antimonopoly Act. In addition, Sharp implemented
an online training program in antitrust laws for all employees in Japan, conducted training at overseas bases, and
reviewed the answers submitted by Sharp employees for the checklist in its internal control self-check system to
comply with antitrust laws in Japan (which prohibit the formation of cartels).
Antimonopoly Act Compliance Manual (Action Guidelines)
With the entire Sharp Group dedicated to complying with the Antimonopoly Act, Sharp established the
Antimonopoly Act Compliance Manual (Action Guidelines) for all employees to abide by.
The manual outlines the regulations of the Antimonopoly Act and explains prohibited actions by type,
using precautions and an FAQ format. Points that need special attention in relation to Sharp's business
activities are given detailed explanations.
Based on the Antimonopoly Act Compliance Manual, Sharp has also formulated a manual specializing in
preventing formation of cartels and another manual catering to specific business situations, such as OEM
dealings. Sharp will make the most of these manuals in future training sessions.
― 38 ―
Sharp Sustainability Report 2014
Consultation Hotline for Compliance Issues
Sharp Corporation and its affiliated companies in Japan have set up a hotline to provide counseling services for
problems in the workplace, such as compliance issues, and an antitrust law hotline as a contact point specifically
for issues related to antitrust laws. These hotlines are accessible inside the company and externally (via an outside
law firm providing legal counsel) to enable employees and temporary staff, as well as employees of business
partners*1, to ask questions or request a consultation in line with the spirit of Japan's Whistleblower Protection Act.
These services enable Sharp to work with employees to quickly catch violations of the law or acts likely to be
violations, and take early action to resolve the problem.
In fiscal 2013, the compliance hotline received about 50 reports and requests for consultation; however, there were
no material compliance violations.
The Sharp Code of Conduct clearly stipulates that the privacy of individuals who report compliance violations or
seek consultation will be strictly protected and that those persons will suffer no unfavorable treatment or penalties.
Similar reporting and consultation services have been set up at Sharp's major overseas bases, and early actions
are being taken to resolve problems.
*1 Only the compliance hotline is available for use by employees of business partners.
Preventing Corruption in All Forms and Dealing Properly with Donations
The Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct contain provisions that strictly
prohibit any form of corrupt behavior, such as bribery or extortion of money or gifts, and require that donations be
handled in a proper manner.
In Japan, Sharp prevents illegal payoffs and improper expenditures through a system of compulsory reviews by the
Monetary Contribution Examination Committee on CSR, in place since December 2008 to assess the propriety of
monetary disbursements such as donations and contributions made by Sharp Corporation and its affiliated
Fiscal 2011
Number of reviews
Fiscal 2012
Fiscal 2013
Sharp has formulated a guidebook for preventing bribery and other corrupt practices. For overseas bases, the
company is producing training materials customized to reflect the laws and regulations of each region.
Sharp will continue these measures in fiscal 2014.
Preventing Insider Trading
Sharp has effectuated regulations restricting insider trading, established controls on undisclosed material facts
("insider tips"), and instituted restrictions on the buying and selling of stocks and other securities. Sharp has also
implemented in-house training related to insider trading. This training includes, among other approaches, an
educational campaign on the corporate intranet that targets Sharp Group employees in Japan with the aim of
preventing insider trading by Sharp Group directors, auditors, executive officers, or employees.
In addition, given the importance of disclosure, when "material facts specified in the Financial Instruments and
Exchange Act" and/or "important company information that should be disclosed in a timely manner as stipulated by
securities exchanges" is generated, Sharp will do its utmost to promptly disclose and publicize the relevant details.
Further, regarding media and analyst coverage, Sharp will deal with it in a positive manner, while fully honoring the
spirit of disclosure and remaining attentive so as not to violate insider-trading regulations.
In fiscal 2013, Sharp continued its controls on material facts, as stipulated by the regulations restricting insider
trading, and continued holding lectures on insider trading regulations at employee training sessions. Sharp also
made proactive efforts to prevent insider trading in response to an amendment to the Financial Instruments and
Exchange Act that came into force in Japan in April 1, 2014. Efforts include revising company regulations on insider
trading and ensuring that all employees are aware of the amendment and related issues.
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Sharp Sustainability Report 2014
Compliance with Laws Related to Fair Advertising Practices and Proper Representations
Sharp is taking the following measures to ensure compliance with laws and regulations regarding fair advertising
and publicity activities, the Act against Unjustifiable Premiums and Misleading Representations, and labeling under
the fair competition code.
1) Establish a dedicated team to check the representations made in brochures, ads, and other such materials prior to their
2) Put final decisions on what to do with any questionable representations before a company-wide committee on fair
representations, headed by the Group General Manager of the Corporate Management Group.
3) Hold regular in-house training on the Act against Unjustifiable Premiums and Misleading Representations and the fair
competition code.
4) Appoint an outside expert as a part-time corporate advisor to obtain objective guidance and advice on issues and
matters requiring consultation related to representations/labeling.
In addition to these measures, Sharp is fostering awareness among its employees on preventing violations of these
laws and regulations by ensuring that representations are in accord with in-house standards and checklists as set
forth in in-house rules and guidelines. The company is also using a dedicated website on its corporate intranet to
support skill development in personnel in charge of representations.
Sharp will work on an ongoing basis to further strengthen its checking system in Japan and abroad, while also
enhancing related policy measures. The company will continue to ensure compliance with representation/labeling
laws as well as laws and regulations governing fair advertising and publicity activities aimed at stakeholders,
particularly customers.
Export Control
Sharp has been committed to export control ever since the days of the Cold War, when COCOM regulations were
in effect. In the past, it was obvious which technologies were cutting-edge; but today, with the advance of
technology, there is an increasing number of cases of consumer-use technologies and products being diverted for
use in a military or weaponry context. Manufacturers are required to pay the utmost attention when exporting
products and components and transferring technologies.
Against this backdrop, when exporting goods and transferring technologies from Japan to other countries,
Japanese companies are obliged to comply with laws and regulations related to export control, such as the
Japanese Foreign Exchange and Foreign Trade Act (Foreign Exchange Act). Each Sharp Group company,
including domestic and overseas subsidiaries, has a system in place for secure export control based on the Sharp
Code of Conduct and Sharp Compliance Program on Export Control. Through this system, Sharp monitors goods
and technologies that fall under local export control regulations, while rigorously controlling the destination and the
end use of Sharp products and technologies to ensure that they will not be used in a military or weaponry context.
Sharp's multi-faceted approach to export control has so far resulted in no violation of laws and regulations on export
In addition to observing the Foreign Exchange Act, companies must comply with the Export Administration
Regulations of the United States on re-exporting US-origin products, and Sharp is working to comply with these
When supplying regulated goods to a customer in Japan, Sharp informs the customer that those goods are
regulated. If a customer inquires whether goods or technologies are regulated, Sharp will issue—upon the
customer's request—a certificate indicating whether or not the goods or technologies are regulated.
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Sharp Sustainability Report 2014
Sharp is also pursuing education on export control. It provides training for each business division as well as training
for employees being transferred overseas and employees being assigned new positions. To raise awareness about
export control among its employees around the world, Sharp provides training on export control via e-learning
sessions. These sessions are available for all employees whose work is related to export control, including those at
overseas subsidiaries.
Ever more countries are establishing laws and regulations pertaining to export control, and the importance of export
control is growing worldwide. For this reason, Sharp is working to strengthen its system for export control, while
also enhancing its ability to disseminate information aimed at preventing any violations of laws and regulations.
Sharp will maintain this policy and system for export control and work to contribute to secure export control on a
global basis.
*2 The US restricts the re-export of US-origin products to a third country. The regulations have an extraterritorial effect outside the US, so
there is the possibility that the US government will impose a penalty on parties that violate these regulations.
― 41 ―
Sharp Sustainability Report 2014
[ Management ]
Information Security / Protecting Personal Information
Management of Confidential and Personal Information
To avert the risk of leaks, Sharp strictly manages not only internal information but also personal data collected from
customers and confidential information received from business partners and others. This is done in line with internal
regulations based on the Global Basic Policy on Information Security and the Basic Policy on Protecting Personal
Related information:
Global Basic Policy on Information Security
Basic Policy on Protecting Personal Information
In Japan, e-learning sessions are provided to all employees each year on topics such as information security and
protection of personal information. In addition, regular audits are conducted (as a general rule, once a year) on
management of confidential and personal information at each business group and affiliated company.
As a group-wide measure against data breaches, Sharp is instituting a digital document management system and a
paperless teleconference system. The document management system enables automatic encryption, document
access control, and restrictions on such operations as editing, printing, and copying of documents. The paperless
teleconference system enables the digitization of important conference materials as protection against
unauthorized use of confidential information.
Sharp will continue to review and improve relevant regulations and will also continue to ensure that all employees
are well informed of them.
Global Information Security Management System
In fiscal 2013, Sharp continued information security audits for each of the four major overseas regions (Inter
America, Europe, Greater China, and Asia Pacific/Middle East/Africa) and strengthened information security
measures. Sharp is also continuing website penetration tests to check for vulnerabilities in publicly accessible
websites operated by its overseas subsidiaries.
Responding to New Threats to Information Security
In fiscal 2013, as a measure against targeted website attacks, which have recently become a major issue, Sharp
worked to resolve vulnerabilities in the PC software it uses and prohibited the use of software that could cause data
To protect against breaches of internal computer networks by attackers, Sharp is strengthening its surveillance
system and introducing a network monitoring tool that cuts off communications with intruders before such contact
can trigger transmission of confidential information to the outside, downloading of malicious software, and other
such acts.
Going forward, Sharp is planning to train its employees on how to deal with advanced persistent threats so that
they will be well prepared should such targeted attacks occur.
― 42 ―
Sharp Sustainability Report 2014
[ Management ]
Intellectual Property
Intellectual Property Strategy and Management System
Sharp regards its strategy on intellectual property as one of its most important management measures and is
promoting it together with its business strategy and R&D strategy. Sharp is aggressively pursuing the acquisition of
patents to ensure the superiority of its business, thereby working to strengthen its management foundations.
Regarding patent acquisition, Sharp is clarifying the business areas that form the core of each of its businesses and
is staffing these core business fields with engineers well versed in patent-related matters. Sharp is thus able to file
strategic patent applications tightly focused on the actual situation. In addition, Sharp is also acquiring useful
patents invented in cooperation with other companies or derived from the activities of alliances, such as industryuniversity cooperation.
As of the end of March 2014, Sharp's patent holdings consisted of 18,925 Japanese patents and 24,033 foreign
patents. Sharp is using this patent portfolio to reinforce its strategic businesses. In addition, Sharp is filing
applications and registering rights for designs and trademarks globally under its brand strategy.
End of March 2012
End of March 2013
End of March 2014
Japanese patents
Foreign patents
Protecting Intellectual Property
Sharp's business and R&D strategies are interlinked with its intellectual property assets, which are used to the
fullest possible advantage. At the same time, Sharp is firmly committed to protecting its own intellectual property
rights while also respecting the intellectual property rights of others. Even though Sharp regards discussion as the
basis for resolving cases of infringement, it is the company's policy to seek judgment from a third party, such as the
courts, when its intellectual property rights are not respected.
By strengthening in-house rules, Sharp is also working to bolster protection for trade secrets and to prevent
unauthorized disclosure of production technologies and manufacturing know-how, particularly those that are unique
or critically important to Sharp.
Further, counterfeit Sharp-brand products have had a growing impact in overseas markets in recent years, and
Sharp is taking measures to counter these imitations through cooperation with industry groups and with regulatory
authorities taking enforcement actions.
Incentives for Employee Inventions
To comply with the intent of Article 35 of Japan's Patent Law, Sharp consulted with employees before stipulating its
in-house rules, called the "Regulations for Employee Inventions." The regulations include detailed standards on
rewarding an employee who comes up with an invention while on the job and hands over the right to obtain patents
for that invention to the company.
Sharp also reviewed and revised compensation systems in subsidiaries and affiliated companies in Japan
according to the intent of the Patent Law and has come up with programs that improve incentives for employees
who devise inventions. In this way, Sharp has built and is promoting systems to compensate employees fairly and
appropriately, depending on the contribution their invention makes to the company and on the contribution that each
employee involved made to the invention.
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Sharp Sustainability Report 2014
Combating Counterfeit Goods
Sharp has implemented the following two main initiatives to combat counterfeit goods:
1) When counterfeit goods are traded within the national borders of a country, Sharp will petition local law
enforcement agencies to crack down and will hold training workshops for officials. Sharp will also cooperate with
other companies in the same business area to expose the goods.
2) When counterfeit goods are moved from one country to another country, Sharp will petition local customs
authorities to crack down and will hold training workshops for officials.
Sharp will continue its efforts against counterfeit goods through these actions.
Sharp Has Ranked among the Top 10 in Number of PCT International Patent
Applications for 5 Consecutive Years
Sharp is reinforcing patent applications overseas in an effort to construct a global patent portfolio in line
with the company's business strategy. As a result of these efforts, in fiscal 2013, Sharp ranked number six
in the world for the number of PCT (Patent Cooperation Treaty) applications. This means that Sharp has
ranked among the top 10 for five years in a row, starting from 2009.
Number of PCT Applications in Fiscal 2013
Number of Applications
Panasonic Corporation (Japan)
ZTE Corporation (China)
Huawei Technologies Co., Ltd. (China)
Qualcomm Incorporated (United States)
Intel Corporation (United States)
Sharp Corporation (Japan)
Robert Bosch GmbH (Germany)
Toyota Motor Corporation (Japan)
Telefonaktiebolaget LM Ericsson (Sweden)
Koninklijke Philips Electronics N.V. (The Netherlands)
Source: WIPO (World Intellectual Property Organization)
Sharp's results for the previous four years:
3rd place in 2012; 4th place in 2011; 8th place in 2010; 10th place in 2009
― 44 ―
Sharp Sustainability Report 2014
[ Environmental Sustainability Management ]
Putting Environmental Sustainability Management into Practice
In accordance with internal environmental conservation guidelines established in line with Sharp's Basic
Environmental Philosophy, the Sharp Group Charter of Corporate Behavior, and the Sharp Code of Conduct, Sharp
is pursuing environmental consciousness across all of its business activities.
System for Promoting Environmental Sustainability Management
Sharp Corporation has set up the CS and Environmental Promotion Division as an organization to plan and
promote overall company strategy for protecting the global environment, and it is deploying environmental
sustainability management on a global basis.
Critical policies, strategies, and measures relating to environmental sustainability management are referred to the
Executive Management Meeting. With the approval of corporate executives, these initiatives are thoroughly
implemented across the entire Sharp Group. Twice a year the company holds a basic environmental policy
meeting, at which the managers responsible for environmental affairs at each manufacturing-related department
and base worldwide are thoroughly briefed on priority measures and strategies. This information is then shared with
relevant parties at the sites where Sharp's manufacturing takes place (for example, the product design and
manufacturing departments).
Sharp also holds Company-Wide GP (Green Product)/GF (Green Factory) Conferences in Japan as well as
regional environmental conferences in North America, Europe, Asia, and China to review and discuss
environmental solutions and the progress made on each of the environmental measures being taken at each
department and base. In this way, Sharp has a system in place to put environmental sustainability management into
practice across its entire organization.
― 45 ―
Sharp Sustainability Report 2014
Promoting an Environmental Management System
Sharp has been operating an environmental management system (based on ISO 14001) at its plants and offices
since 1995 in order to strengthen environmental sustainability management and improve the environmental
awareness of employees.
The company is reviewing and restructuring the underlying framework of this system—including its rules and
operational structure—in order to match it to the particular needs of each plant and office and thus improve its
Related information:
ISO 14001-certified plants and offices
Environmental Performance Data Management System
To support environmental sustainability management, Sharp has established a system for managing data on
Sharp's environmental performance. This system compiles key environmental performance data with high levels of
precision and speed, and it is in operation at Sharp bases worldwide, from plants to offices.
The system accumulates data on the environmental burden caused by Sharp's business activities; for example, in
terms of energy consumption, waste generation, and water usage. It is effectively used to grasp the current state of
Sharp's environmental sustainability management, identify problems, and formulate measures.
Promoting Environmental Education
Sharp conducts company-wide environmental education in order to foster leaders who can guide others in
operating the company's environmental management system. Education programs include internal auditor training
and environmental compliance training related to products for environmental promotion leaders and persons in
charge of environmental affairs in each department. Sharp also has an education program at every plant and office,
and each program includes specialized training for persons in charge of environmental matters and basic
environmental training for other employees.
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Sharp Sustainability Report 2014
[ Environmental Sustainability Management ]
Material Balance
Sharp uses numerical values to gain an overview of the burden its business activities place on the environment and
uses these values to promote environmental sustainability management.
By making use of these current values at all stages of business activities to create proposals for policy measures
and to analyze and evaluate the results, Sharp is aiming to effectively reduce the impact it has on the environment.
*1 TJ (terajoule) = 10 12 Joules
*2 Amount of solar power generated; amount of green power certificates purchased.
*3 In Japan.
*4 Total weight of products in the 13 major categories sold in fiscal 2013 (estimate) and packaging materials used, plus waste, etc.
*5 Amount recycled through closed-loop plastic material recycling technology.
*6 Estimate of annual energy used and amount of CO2 emitted by products in the 13 major categories sold in fiscal 2013.
Related information:
Boundary of environmental performance data, calculation standards for environmental performance indicators
― 47 ―
Sharp Sustainability Report 2014
Greenhouse Gas Emissions Based on the GHG Protocol Initiative
Sharp calculates greenhouse gas emissions based on the GHG Protocol*7 and then works to limit those emissions
resulting from customer use of Sharp products and Sharp's business activities including the supply chain. The
results for fiscal 2013 are as follows.
*7 The GHG Protocol is an international standard for calculating greenhouse gas (GHG) emissions. It was jointly established by the World
Business Council for Sustainable Development (WBCSD), a coalition of the world's leading companies, and the World Resources
Institute (WRI), a United States-based think tank.
■ Greenhouse Gas Emissions by Scope 1/2/3 Categories Based on the GHG Protocol Initiative (Fiscal
(thousand tons CO2 )
Scope 1 (direct GHG emissions from business
Emissions from combustion of gas, heavy oil,
Scope 2 (indirect GHG emissions from energy
usage in business activities)
950 Emissions from the use of electricity
Calculated for 10 categories such as
Scope 3 (indirect GHG emissions from areas
outside the scope of business activities)
Procurement, Shipping & Distribution, Product
Usage, and Employee Commuting & Business
■ Greenhouse Gas Emissions by Scope 3 Category (Fiscal 2013)
tons CO2)
Purchased goods and services
CO2 emissions from the manufacture of materials
4,090 procured for main products*8 that the Sharp Group
sold in the relevant year
Fuel- and energy-related
activities not included in scope 1
or 2
CO2 emissions from transmission losses of
electricity purchased by the Sharp Group
Upstream transportation and
CO2 emissions from transportation and distribution
of materials procured by the Sharp Group
Business travel
CO2 emissions from business travel by all
employees of Sharp Corporation
Employee commuting
CO2 emissions from commuting by all employees of
Sharp Corporation
Leased assets
— Included in scope 1 and 2 CO2 emissions
Processing of sold products
Downstream transportation and
Use of sold products
CO2 emissions from processing at destination of
Sharp Group products
CO2 emissions from transportation and distribution
of products manufactured by the Sharp Group
CO2 emissions*9 in the relevant year from the use
26,300 of main products*8 that the Sharp Group sold in the
relevant year
End-of-life treatment of sold
CO2 emissions from recycling 4 types of
appliances*10 that Sharp Corporation sold in Japan
*8 LCD TVs, air conditioners, refrigerators, washing machines, air purifiers, microwave ovens, LED lights, Blu-ray Disc recorders,
facsimiles, mobile phones, LCD monitors, MFPs, solar cells (13 product types)
*9 The amount of CO2 emissions from the use of sold products does not include avoided emissions from the use of solar cells.
*10 LCD TVs, air conditioners, refrigerators, washing machines
― 48 ―
Sharp Sustainability Report 2014
[ Environmental Sustainability Management ]
Environmental Accounting
Sharp introduced environmental accounting in fiscal 1999 to provide a quantitative assessment of the costs and
benefits of its environmental conservation activities and is applying the results to environmental sustainability
Environmental Conservation Costs
In fiscal 2013, Sharp's environmental conservation investment was approximately 2.4 billion yen, and
environmental conservation expenditures were approximately 32.0 billion yen. Costs associated with R&D made up
a large percentage of these figures.
Economic Benefits
The actual benefit was approximately 2.5 billion yen, resulting from an increase in the use of recycled water and the
expanded recycling of waste into valuable resources.
From fiscal 2013, Sharp ceased calculating the estimated benefits related to the economic benefits and
environmental conservation effects and reviewed the process so as to calculate only the actual benefits, which
provide a more accurate reflection of the actual situation. Also, from fiscal 2012, the effects coming from the
"reduce greenhouse gas emissions" category are calculated based only on the effects achieved through the use of
equipment that is depreciating.
― 49 ―
Sharp Sustainability Report 2014
*1 HFCs, PFCs, sulfur hexafluoride, nitrogen trifluoride, HCFCs
*2 Total of the effects limited to those resulting from the use of equipment that is depreciating.
*3 Amount reduced by solar power systems sold in fiscal 2013, assuming that they will be in operation for the next 20 years.
*4 Amount reduced by products in the four major categories (LCD TVs, air conditioners, refrigerators, MFPs) sold in fiscal 2013, assuming
that they will be used for the next 10 years.
*5 GWP (global warming potential) is a measure of how much a given amount of greenhouse gas will contribute to global warming,
expressed relative to an equivalent mass of CO2.
*6 5-ton containers
Explanation of Terminology
Environmental Conservation Costs
Overhead costs, personnel expenses, and investment associated with environmental conservation activities, in
addition to attendant depreciation.
Economic Benefits
Contributions to society and to the company that result from environmental conservation activities, expressed in
monetary units (economic effects that can be assessed directly in monetary terms, such as cost savings from
energy-saving efforts and use of recycled water, as well as profits from the sale of valuable resources).
Sites Covered
Sharp Corporation sites (Tochigi, Yao, Hiroshima, Nara, Katsuragi, Fukuyama, Mie, Tenri, Mihara, Kameyama,
Tanabe, the Head Office, and Sakai), Sharp Manufacturing Systems Corporation, Sharp Niigata Electronics
Corporation, Sharp Yonago Corporation, and Sharp Mie Corporation
Period Covered
April 1, 2013 to March 31, 2014
Referenced Guidelines
Environmental Accounting Guidelines 2005 published by the Ministry of the Environment, Japan
― 50 ―
Sharp Sustainability Report 2014
[ Product Development ]
Developing Environmentally Conscious Products and Devices
Along with establishing guidelines for environmentally conscious design, Sharp sets assessment standards for the
certification of environmentally conscious products and devices. Every year, the company revises these guidelines
and standards, thus constantly improving the environmental performance of its products and devices.
Developing Green Products
Sharp calls its environmentally conscious products Green Products (GP). The GP Guidelines, which define
development and design criteria in line with seven concepts, have been in use at all product design departments
since fiscal 1998.
In developing products, Sharp sets specific objectives according to the GP Standard Sheet, which is formulated
based on the GP Guidelines. In the trial manufacture and mass production stages, it determines how well the actual
product has met these objectives, with those achieving the standards being awarded GP status.
The content of the GP Standard Sheet—the benchmark for development objectives—is revised each year in order
to constantly improve the environmental performance of Sharp products.
Developing Super Green Products
Since fiscal 2004, Sharp has been certifying products that offer a particularly high level of environmental
performance as Super Green Products (SGP). In fiscal 2013, Sharp revised the criteria for this certification, taking
into account consumer needs. Products are certified if they offer class-leading energy-saving or energy-creating
performance or if they offer significantly reduced power consumption through the use of unique Sharp technology.
This way, Sharp is aggressively pursuing the development of products that consume as little power as possible, as
well as developing high-efficiency solar cells.
In fiscal 2013, 67 product models were certified as SGP under the new criteria. Sales of those products reached
331.4 billion yen, with SGP sales accounting for 46.7% of all GP sales.
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Sharp Sustainability Report 2014
Developing Green Devices
Sharp calls its environmentally conscious devices Green Devices (GD). To define guidelines for development and
design based on seven concepts, Sharp established the GD Guidelines, which it began applying at all device
design departments in fiscal 2004.
In developing devices, Sharp sets specific objectives according to the GD Standard Sheet, which is formulated
based on the GD Guidelines; and in the trial manufacture and mass production stages, it determines how well the
actual device has met these objectives, with those achieving the standards being named GD.
In fiscal 2013, Sharp revamped the GD assessment system by adding new criteria concerning the implementation
of forward-looking initiatives that take customer and business partner demands into consideration. The degree to
which this criteria are satisfied is represented in points called GD Challenge Points. With the new grading system
having come into effect from April 2014, Sharp is encouraging voluntary efforts by its development and design
departments with the aim of creating devices with an even higher level of environmental performance.
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Sharp Sustainability Report 2014
Identifying and Reducing Environmental Impacts throughout the Life of
Sharp performs a life cycle assessment (LCA) on its products to identify their impact on the environment throughout
their service life. Converting this impact into CO2 emissions provides a quantitative measure that Sharp uses in its
efforts to reduce environmental impacts. For example, LCD TVs and other consumer electronics have a large
impact during use. Thus, by focusing on improving their energy savings, overall environmental impact can be
effectively reduced.
Sharp will continue to use LCA as a tool that contributes to the development of products with smaller environmental
Note: CO2 emissions during use are calculated using a CO2 emission coefficient of 0.487 kilograms CO2/kWh (announced
by the Federation of Electric Power Companies of Japan for fiscal 2013).
* CO2 emissions during use are calculated from annual power consumption based on fiscal 2010 measurement methods for LCD TVs and
fiscal 2006 measurement methods for refrigerators under targets set for Top Runner criteria based on the Law Concerning the Rational
Use of Energy (Energy Conservation Law).
― 53 ―
Sharp Sustainability Report 2014
Product Environmental Assessment System
Sharp operates the e-SPIRITS product environmental assessment system to ensure compliance with
environmental laws and regulations as well as to promote environmentally conscious product design.
e-SPIRITS allows Sharp to keep a database of GP and GD development know-how and design data from all Sharp
design and development bases. This database is used to raise design standards as well as standardize in-house
life-cycle assessments (LCA). In addition, e-SPIRITS is used in the certification of SGP on a worldwide basis. This
way, e-SPIRITS is contributing to the creation of environmentally conscious Sharp products and devices.
― 54 ―
Sharp Sustainability Report 2014
[ Product Development ]
Developing Environmentally Conscious Products
Sharp's Plasmacluster ion generators are at work in food processing factories across Japan.
In fiscal 2013, Sharp was recognized for its new solution proposal on creating hygienic spaces and saving energy
through Plasmacluster technology. This case study involved installing Plasmacluster-equipped units in a seafoodprocessing plant to maintain a hygienic environment and reduce the power consumption of the air conditioning
system. Sharp won the Director-General's Prize of the Agency for Natural Resources and Energy in the Product
and Business Model category, an award in the 2013 Energy Conservation Grand Prize program in Japan.
Generally, seafood-processing plants are kept at low temperatures by use of air conditioning. If energy-saving
initiatives were to cause the room temperature to rise, bacteria would proliferate and cause problems. Sharp, in
collaboration with a seafood-processing plant in Kagoshima Prefecture, conducted a joint experiment in which
Plasmacluster ion generators were installed in a working factory. The results showed that even if the temperature
inside the factory rose by 2℃, the growth of airborne bacteria was suppressed. It was confirmed that the same level
of hygienic control could be maintained*1. Raising the temperature setting of the air conditioning system allowed the
factory to reduce power consumption by approximately 20%*2. The Plasmacluster units also contributed to a better
work environment, for example by suppressing odors and reducing the impact of cold temperatures on employees.
*1 Test method: Forty-four ceiling-embedded IG-1B10A Plasmacluster ion generators were installed in a seafood-processing plant with a
floor area of approximately 360 m2. The amount of airborne bacteria was measured using an air sampler with the factory temperature
set at 15℃ and 17℃, with Plasmacluster ions and without Plasmacluster ions.
Test results: The amount of airborne bacteria in a 17℃ environment with Plasmacluster ions was equivalent to that in a 15℃
environment without Plasmacluster ions.
*2 Sharp estimate based on an index of the Japan Refrigeration and Air Conditioning Industry Association stating, "Raising the cooling
temperature setting by 1℃ in a home-use air conditioner is estimated to reduce power consumption by approximately 10%."
With the award certificate and trophy
The seafood-processing plant that cooperated in the
Words from a Sales Representative
As a result of pursuing expanded applications for Sharp's unique
Plasmacluster technology under a new concept of putting air
purification to work while saving energy, we were able to
simultaneously achieve hygienic control, reduce the physical burden
on employees caused by low temperatures, and save energy at a
seafood-processing plant.
I would like to come up with new proposals for creating a hygienic
environment while saving energy in various fields, including
measures to deal with food loss, not only in Japan but overseas as
― 55 ―
Sharp Sustainability Report 2014
[ Product Development ]
Examples of Super Green Products for Fiscal 2013
Note 1: Indications of "No. 1" and "one of the industry's highest" are given to products that fulfill, at the time of sale, the
criterion of "leading the industry in energy-saving or energy-creating performance in their respective product
categories", which is one of the Super Green Product certification criteria. These indications do not guarantee
that the products are "No. 1" or "one of the best" at subsequent dates in the future.
Note 2: The following models are for the Japanese market.
― 56 ―
Sharp Sustainability Report 2014
Number of Environmental Label Products
(As of March 31, 2014)
Target countries:
*1 Japan, United States, EU nations, etc.
*2 Japan
*3 Germany
*4 China
*5 Norway, Denmark, Finland, Iceland, Sweden
― 57 ―
Sharp Sustainability Report 2014
[ Product Development ]
Promoting the Total Energy Solutions Business
Ever since it started development of solar cells in 1959, Sharp has created and promoted the use of a range of
solar power generation systems. As of fiscal 2013, Sharp's total solar cell production volume had reached 8.4 GW.
Sharp is a total energy solutions provider, involved in every part of the value chain including cell and module
development and manufacture, system design, construction of solar power plants, repair and maintenance, and
management as an IPP (independent power producer).
Spreading the Use of Solar Power Generation Systems in Japan
In Japan, the Feed-In Tariff Scheme for Renewable Energy (a system for the purchase of excess electricity) is
increasing demand for solar power, leading to a boost in the spread of solar power generation systems for both
residential and industrial use.
As of March 31, 2014, approximately 1.55 million households in Japan had solar power generation systems, with
roughly 640,000 (41%) of those being Sharp systems. In anticipation of an era in which people use electricity
smartly, Sharp is working to offer zero-GHG-emission house solutions, where residents create electricity through
solar power systems, store that electricity in storage batteries, and consume that electricity wisely through HEMS
(home energy management systems) and energy-saving appliances. In November 2013, Sharp released the Multi
Energy Monitor, an industry-first product that enables control of a solar power generation system, a storage battery,
and a heat-pump water heater from a single unit.
In the industrial sector, Sharp is expanding its business to encompass EPC*, which involves designing and
constructing solar power plants and procuring equipment for them; repairs and maintenance; and management as
an IPP. As of the end of fiscal 2013, Sharp's IPP business is operating in 12 locations across the country,
generating a total of 26 MW.
* In plant construction, an EPC (engineering, procurement, and construction) contractor carries out the engineering and design of the plant,
procures all the necessary materials and equipment, and constructs the plant.
JH-RWL6 Multi Energy Monitor installation (image)
Sharp Miyoshino Solar Power Plant
(Yoshino District, Nara Prefecture)
― 58 ―
Sharp Sustainability Report 2014
Promoting Solar Power Business around the World
Sharp is also conducting EPC business and repair and maintenance work in overseas markets.
In Thailand in January 2014, Sharp received an EPC order for a 52 MW mega solar power plant from SSP, a Thai
solar power producer. This project in Lop Buri Province in central Thailand involves installing approximately
400,000 thin-film solar modules. Plans are for construction on the plant to be completed—and for it to go
online—this year.
In Phnom Penh, Cambodia, Sharp provided solar modules for a shopping mall that opened in June 2014. The
mall's open-air café zone has 290 see-through solar modules (approx. 27.5 kW), while the bicycle parking area has
809 crystalline solar modules (approx. 198.2 kW). The electricity generated by these modules is used for lighting
and air conditioning within the mall.
Open-air café zone
― 59 ―
Sharp Sustainability Report 2014
[ Product Development ]
Promoting the Total Energy Solutions Business
In February 2014, a mega solar power plant called SoftBank Tottori-Yonago Solar Park* started operations. Sharp
was involved in its construction as an EPC contractor. With an output of approximately 42.9 MW—and with an
estimated annual power generation capacity of 45 million kWh/year—this plant can provide enough electricity to
match the consumption of about 11,000 average households a year. It is the largest of its type in Honshu, Japan's
main island.
The construction of Solar Park was on a massive scale, requiring the installation of 178,776 crystalline solar
modules on a vast reclaimed land area of roughly 532,000 m2 and involving up to 300 workers at any one time.
Thanks to Sharp's experience in building mega solar power plants in Japan and elsewhere—including a 73 MW
plant in Thailand—Solar Park was able to go online within a year of construction commencing.
* A large-scale solar power plant in Sakitsu, Yonago operated by Tottori-Yonago Solar Park Corporation, a specific-purpose company
jointly established by SB Energy Corporation (a SoftBank Group company) and Mitsui & Co., Ltd.
Sharp solar modules and construction workers
Bird's-eye view of Tottori-Yonago Solar Park
Words from a Project Leader
As the prime contractor for this project, Sharp was in charge of
coordinating a total of 29,424 construction workers on a vast area of
roughly 532,000 m2, over which ran 6 km of power lines. We
installed 178,776 solar modules, performed power line construction
work on open roads, and widened and reinforced roads to enable
the installation of extra-high-voltage substation equipment. All this
work was finished in about a year.
I am proud to say this is proof of Sharp's confidence and
achievements backed by technical expertise in solar power
generation accumulated over the course of more than 50 years. We
will make the most of our technical strengths to construct solar
power plants in Japan and other parts of the world, with the aim of
spreading the use of renewable energy worldwide.
― 60 ―
Sharp Sustainability Report 2014
[ Product Development ]
Green Procurement / Managing Chemical Substances in Products
Green Procurement—Reducing Environmental Impact in the Supply Chain
In fiscal 2000, Sharp established the Green Procurement Guidelines to procure goods with low environmental
impact with the cooperation of suppliers, and it has been working to increase environmental consciousness at the
level of parts and materials. In fiscal 2005, contracts with Sharp's suppliers were amended to require compliance
with the Green Procurement Guidelines. In fiscal 2011, Sharp revised the guidelines to promote the biodiversity
protection efforts of its suppliers.
Sharp and its suppliers will continue conducting business with a focus on environmental protection in order to
reduce environmental impact throughout the entire supply chain.
Eco Improvement Contest Involving Suppliers (SSI, Indonesia)
In June 2013, SSI, Sharp's manufacturing subsidiary in
Karawang, Indonesia, held an Environmental Kaizen
Competition in which 48 persons from 28 supplier
companies participated. Eight teams of suppliers shared
ideas for environmental improvement, such as ways to
reduce waste and CO2 emissions and use water
SSI has been holding this event since fiscal 2012, and
participating suppliers have expressed satisfaction that
they can learn about and adopt measures for reducing
environmental impact at their own companies.
The winner (right) of this year's eco contest
Managing Chemical Substances in Products
Appliances such as refrigerators and TVs are composed of hundreds or thousands of parts, each of which contains
a variety of chemicals. To properly manage these chemicals, countries around the world uphold laws and
regulations that bring these chemicals under control. In the EU, for example, the RoHS directive*1 restricts the use
of specified chemicals in products, while REACH regulations*2 require companies to convey and disclose
information on chemicals used throughout the supply chain. Countries such as Japan and China also have laws
requiring companies to disclose information on certain chemicals contained in products.
In fiscal 1994, Sharp established its own standards for managing chemicals contained in parts and materials used
for its products. Based on these standards—which were stricter than voluntary industry standards or standards
stipulated by laws and regulations—Sharp introduced its original Chemical-Product Assessment (C-PA) system to
evaluate the safety of chemicals. In this way, Sharp has been working to ensure the safety of products during use
and to reduce the environmental impact at the time of disposal.
Sharp also has in place its own chemical substance management system, through which it cooperates with
suppliers to collect data on chemicals contained in parts and materials. The company is working to upgrade and
expand this database on chemicals contained in its products.
*1 An EU directive on the "Restriction on the use of certain Hazardous Substances," RoHS restricts the use of lead, mercury, cadmium,
hexavalent chromium, polybrominated biphenyl (PBB), and polybrominated diphenyl ether (PBDE) in electrical and electronic equipment
entering the EU market after July 1, 2006.
*2 REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals) is a set of EU regulations covering chemicals produced in
and imported into the EU.
― 61 ―
Sharp Sustainability Report 2014
[ Product Manufacture ]
Raising the Level of Environmental Performance in Factories
Sharp is working to raise the level of environmental performance at its factories through the use of its own
assessment and certification system. So far, almost all of its factories have achieved Super Green Factory (SGF)
status, meaning they boast an extremely high level of environmental performance.
Pursuing the Green Factory Concept
In order for its factories to win the confidence of local communities, Sharp defines factories that meet a certain level
of environmental performance as "Green Factories" (GF). Sharp's GF Guidelines, which are based on 10 concepts,
indicate basic policy and know-how required for achieving GF status. These guidelines were introduced at all
factories in Japan in fiscal 1999 and at all factories overseas in fiscal 2001.
Applying SGF and SGF II to All Factories
Sharp has been implementing systems for assessing and certifying the environmental friendliness of factories
based on its own criteria. The SGF system was introduced in fiscal 2003 and the SGF II system in fiscal 2008 at all
factories in Japan and overseas.
SGF assesses the "hard" aspects of measures, such as introducing high-efficiency equipment and abatement
systems. SGF II, an initiative for factories that have attained SGF certification, assesses overall performance to
enable factories to achieve an even higher level of environmental performance. It incorporates "soft" aspects in
evaluation points—for example, the know-how to maintain and manage environmental equipment to ensure optimal
operational performance—along with results in areas such as emissions reduction. Also included in the SGF II
system are assessments of risk preparedness, including operational safety and emergency response measures.
By fiscal 2013, almost all Sharp factories in Japan had achieved Grade S, the highest rank in the SGF system, and
all overseas Sharp factories had achieved Grade A or higher. Going forward, Sharp will focus on implementing
measures that match the specific conditions of each region of the world, mainly China and other Asian countries.
― 62 ―
Sharp Sustainability Report 2014
Obtaining External Environmental Certification (NSEC, China)
NSEC, Sharp's manufacturing subsidiary in Nanjing, is actively engaged in saving energy and reducing
waste, while also making efforts to receive environmental certification.
To have its Cleaner Production Certificate* renewed in fiscal 2013, NSEC underwent a seven-month
screening process performed by the Nanjing municipal government and other authorities. NSEC was
highly rated for its efforts to reduce annual electricity consumption by 760,000 kWh, which was largely
achieved by boosting the cooling efficiency of its central air conditioning system and introducing energysaving equipment. It was also commended for its efforts to reduce drainage volume by 8,400 m3, through
improvements to the pure-water circulation system. As a result, NSEC once again received the Cleaner
Production Certificate.
NSEC also received acclamation for its various environmental efforts from the Nanjing Economic and
Technical Development Zone, where the company is located. It became the first company in the zone to
be certified as an Environmental Friendly Enterprise.
* A certification system based on China's Cleaner Production Promotion Law, which was enacted in 2003. It enables local
governments to recognize companies in the manufacturing industry that have achieved results in alleviating the environmental
burden of the industry through efforts such as saving energy in factories and reducing waste.
On-site inspection to renew Cleaner Production
The "Environmental Friendly Enterprise" certificate
― 63 ―
Sharp Sustainability Report 2014
[ Product Manufacture ]
Curbing Greenhouse Gas Emissions
Sharp Group Activities to Control Greenhouse Gas Emissions
Sharp is taking active measures to curb greenhouse gas (GHG) emissions resulting from its business activities in
an effort to contribute to the prevention of global warming. As a result of strengthening efforts involving all
equipment and systems—ranging from production lines to utility systems for supplying electricity, gas, and
water—the Sharp Group's GHG emissions in fiscal 2013 decreased by 1% compared to the previous fiscal year,
despite an increase in production. Sharp has also been keeping up efforts to improve production efficiency, and as
a result, it was able to decrease GHG emissions per production unit by 16% compared to the previous fiscal year.
In addition to implementing energy-saving measures, Sharp will continue its efforts to curb GHG emissions by
studying the adoption of gases with lower global warming potential as a replacement for PFCs (perfluorocarbons)*1,
which have a high global warming potential.
*1 HFCs, PFCs, sulfur hexafluoride (SF6), nitrogen trifluoride (NF3), HCFCs
― 64 ―
Sharp Sustainability Report 2014
Installing More LED Lights in Factories (China)
Sharp's manufacturing bases in China are steadily making the switch from conventional fluorescent
lighting to LED lights. Compared to fluorescent lights, LED lights have benefits such as better energy
efficiency and a longer service life necessitating fewer replacements.
SOCC in Changshu, which manufactures mainly MFPs, used LED lights to replace the approximately
2,000 fluorescent lights installed in places that require long hours of illumination, such as the production
lines, product warehouses, and hallways. As a result, the company was able to reduce 217 tons of CO2
per year. SOCC is planning further energy savings for fiscal 2014 by replacing the halogen lamps installed
in the warehouses with LED lights.
At SSEC in Shanghai (which manufactures consumer electronics) and WSEC in Wuxi (which
manufactures electronic components), LED lights are mainly being installed in the production lines. At
present, more than 80% of the lighting consists of LEDs. And at NSEC in Nanjing (which manufactures
LCD TVs), the switch to LEDs is being made in the warehouses.
SOCC in Changshu
SSEC in Shanghai
― 65 ―
Sharp Sustainability Report 2014
[ Product Manufacture ]
Minimizing and Recycling Waste
Curbing the Amount of Waste, etc. Generated by the Sharp Group
Sharp has been working to reduce waste and to recycle as much of it as possible in an effort to contribute to
building a resource-recycling society. In fiscal 2013, the amount of waste, etc.*1 generated by the Sharp Group
decreased by 11% compared to the previous fiscal year, and waste, etc. generated per production unit*2 was down
24% compared to the previous fiscal year.
As a result of ongoing efforts to recycle solid and liquid waste and to recover valuable resources, in fiscal 2013
Sharp production plants in Japan achieved zero discharge to landfill*3 for the 13th consecutive year. The Sharp
Group will continue to strive for the effective utilization of resources.
*1 Amount of waste, etc. generated = waste discharged + valuable resources recovered
*2 Per production unit (tons/100 million yen) = Amount of waste, etc. generated (tons) ÷ production output (100 million yen)
*3 Sharp defines "zero discharge to landfill" as a final landfill disposal rate of less than 0.5%.
Final landfill disposal rate (%) = Amount of landfill disposal ÷ amount of waste, etc. generated × 100.
Data on waste generated by Sharp Corporation (Japan)
― 66 ―
Sharp Sustainability Report 2014
Appropriate Storage and Treatment of PCB Wastes in Japan
Each Sharp plant and office properly manages and stores waste PCB (polychlorinated biphenyls) and fulfills
reporting requirements to the government. In addition, Sharp has registered with the appropriate disposal
certification authority and is on track to finish treating PCB waste to make it harmless by the March 31, 2027
deadline set by the government. Sharp currently uses no PCBs, with the exception of a certain amount present in
high-voltage transformers.
Mie Plant and Mihara Plant Win 3Rs Promotion Merit Awards*4
The Mie Plant (Taki District, Mie Prefecture) and the Mihara Plant (Mihara, Hiroshima Prefecture) were
awarded a 3Rs Promotion Council President's Prize in the 2013 3Rs (Reduce, Reuse, and Recycle)
Promotion Merit Awards.
The Mie Plant was highly rated for achieving its waste reduction goal for five consecutive years and for
collecting items no longer needed in employees' homes and offering them for reuse. This is the fourth
time—and third year in a row—that the Mie Plant has received this honor.
The Mihara Plant won the same award for the second time since last winning it in 2008. It was praised for
reducing effluent sludge*5, which makes up more than 60% of all waste generated, and for reusing waste
*4 An award system sponsored by the 3Rs Promotion Council in Japan to recognize organizations whose ongoing efforts have
brought outstanding results in the 3Rs.
*5 Solid waste resulting from the condensation of impurities generated from the factory effluent treatment process.
Award-Winning Sharp Initiatives
Mie Plant
Mihara Plant
Reducing waste in the Mie Plant and making effective use of items no longer
needed in its employees' homes
Reducing waste and making effective use of water resources in the Mihara Plant
2013 3Rs Promotion Merit Award certificates
― 67 ―
Sharp Sustainability Report 2014
Initiatives at the Mie Plant
At the Mie Plant, where LCD panels are manufactured, the production and facility management
departments cooperate in reducing waste through measures such as condensing liquid waste discharged
from the production process. As a result, the Mie Plant was able to achieve its goal of reducing waste
emissions by 6% year-on-year for five consecutive years.
The plant also collects items that are no longer needed from employees' homes and offers them for reuse.
The earnings gained from selling collected books and CDs were donated to an NPO that supports children
in need in developing countries. Home appliances and bicycles were given maintenance and offered to
local university students. The plant is also expanding its social contribution activities by, for example,
visiting local elementary, junior high, and high schools to give lessons on recycling.
Donating used appliances and bicycles to a local
Teaching elementary school children about the
Initiatives at the Mihara Plant
The Mihara Plant, where electronic devices are manufactured, worked to reduce effluent sludge*5, which
makes up more than 60% of all waste generated. The amount of sludge generated grows in proportion to
the volume of chemicals used in the effluent treatment process. The plant therefore controlled the volume
of chemicals input into the effluent treatment process by analyzing the substances—and their
concentration—contained in the effluent from the production process. As a result, the plant was able to
reduce sludge by 7.5 tons (down 6% compared to the previous fiscal year).
The waste solvents used at the plant were previously all disposed of (through mainly thermal recycling),
with the exception of acetone, which was sold as a valuable resource. By preventing decrease in purity of
the solvents during their use, the Mihara Plant was able to make two other types of waste solvent
recyclable. The recycled solvents are used by resin manufacturers and paint manufacturers.
*5 Solid waste resulting from the condensation of organic end-products generated from the factory effluent treatment process.
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Sharp Sustainability Report 2014
Reducing Hazardous Waste (SSEC, China)
SSEC, a manufacturing subsidiary in Shanghai, switched from drums to tanks for the procurement of
isocyanate*6. Used in insulator material for refrigerators and elsewhere, isocyanate is highly chemically
reactive and must be handled as a hazardous material. Previously, the drums used for procuring
isocyanate were disposed of as hazardous waste. By switching to tanks in fiscal 2013, SSEC was able to
reduce hazardous waste by 5.3 tons per year. As well as making for a safer workplace with less of a
burden placed on employees, this measure also serves to reduce costs.
*6 A chemical compound used as material for polyurethane.
(Before) Transporting isocyanate using drums
(After) Transporting isocyanate using tanks
― 69 ―
Sharp Sustainability Report 2014
[ Product Manufacture ]
Effectively Using Water Resources
Sharp Group Reduces the Amount of New Water Used and Uses More
Recycled Water
Sharp is striving to make effective use of water resources by reducing the amount of new water (i.e., water from the
water supply system) it uses and by expanding the use of recycled water.
The volume of new water used by the Sharp Group in fiscal 2013 decreased by 3% compared to the previous fiscal
year; the volume of new water used per production unit also decreased by 18%.
The Kameyama Plant (Kameyama, Mie Prefecture, Japan) and the Mie Plant (Taki District, Mie Prefecture, Japan)
require a large amount of water in the production process for LCD panels. At both plants, Sharp has adopted a
closed-loop water recycling system that recovers and reuses nearly 100% of the water discharged from the
production process. Through measures such as this, the Sharp Group is maintaining a recycling rate*1 of
approximately 60%.
*1 Recycling rate = Amount recycled ÷ (amount of new water + amount recycled)
Data on water used by Sharp Corporation (Japan)
― 70 ―
Sharp Sustainability Report 2014
Recycling Effluent (Mihara Plant, Japan)
The Mihara Plant (Mihara, Hiroshima Prefecture), where semiconductors and LED devices are made,
recycles concentrated water*2 (brine).
The plant makes pure water, which is indispensable to the manufacture of semiconductors, from water
supplied for industrial purposes. This process results in concentrated water. In an effort to recycle this
water, which was previously treated and disposed of as waste, the Mihara Plant analyzed the water quality
and searched for applications for the recycled water. It was found that the water could be used in
scrubbers*3, which conventionally used industrial water. The plant then proceeded to install collection
tanks for the concentrated water and water-supply piping, and it made the switch from using industrial
water to concentrated water for the scrubbers.
This effort has resulted in reducing the volume of new water used by 15,000 m3 a year, as well as
reducing the volume of effluent and the amount of waste generated during the effluent treatment process
(effluent sludge*4).
*2 Water containing a high concentration of impurities resulting from the pure water production process.
*3 An apparatus that uses an acidic or alkaline solution for removing harmful substances from exhaust gas.
*4 Solid waste resulting from the condensation of impurities generated from the factory effluent treatment process.
― 71 ―
Sharp Sustainability Report 2014
Using Rainwater to Reduce the Volume of New Water Used (SMM, Malaysia)
In 2011, SMM, a manufacturing subsidiary in Johor, Malaysia, installed on its premises a rainwater tank,
and it has since been using the collected water for two of its 12 cooling towers*5. In fiscal 2013, the
company installed four new rainwater tanks so that it could use rainwater for all its cooling towers, realizing
that it is beneficial in terms of reducing costs and making effective use of water resources.
With these additions, SMM expects to reduce the volume of new water it uses by 4,900 m3 a year.
*5 An apparatus that cools the refrigerant used in air conditioning equipment.
Before (April 2011)
More rainwater tanks (February 2014)
― 72 ―
Sharp Sustainability Report 2014
[ Product Manufacture ]
Effectively Managing Chemicals Used in Factories
Effective Management of Chemical Substances
Sharp meticulously controls chemical substances used at its plants. When introducing new chemical substances,
and when bringing in new handling equipment and upgrading existing equipment, Sharp conducts rigorous
preliminary audits based on its own process assessment system*1 to ensure employees' safety and health and to
decrease environmental impact.
Sharp strives for effective management of chemical substances: employees handling these go through regular
education and drills to prevent accidents, and checks are carried out through an environmental safety operations
audit system*2.
Of the chemical substances covered by the PRTR*3 Law, 18 were handled in Japan and 9 overseas in quantities of
500 kg or more by one or more plants during fiscal 2013.
*1 An in-house system for conducting preliminary safety assessments of chemical substance handling equipment.
*2 An in-house system for assessing the activities of the division in charge of environmental management at factories.
*3 PRTR: Pollutant Release and Transfer Register. A system that mandates the collection and dissemination of information, such as the
amount of harmful chemicals discharged and transferred.
■ Fiscal 2013 PRTR Data (Japan)
(Unit: kg)
Amount discharged
20 2-Aminoethanol
Amount consumed
atmosphere water sewage
0 362,275
0 4,951,892 1,140,165
Antimony and its
Indium and its
71 Ferric chloride
0 434,860
Silver and its watersoluble compounds
N, N-dimethylformamide (DMF)
Copper salts (water272 soluble, except
complex salts)
Arsenic and its
332 inorganic
Pyrocatechol (also
known as catechol)
Bis (2-ethylhexyl)
Hydrogen fluoride
374 and its watersoluble salts
― 73 ―
Sharp Sustainability Report 2014
405 Boron compounds
alkyl ether
Manganese and its
438 Methylnaphthalene
448 (4,1-phenylene)
Molybdenum and its
■ Fiscal 2013 PRTR Data (Overseas)
(Unit: kg)
Amount discharged
Amount consumed
Antimony and its
Bis (2-ethylhexyl)
0 16,500
384 1-bromopropane
413 Phthalic anhydride
71 Ferric chloride
(HCFC- 22)
atmosphere water sewage
300 Toluene
304 Lead
― 74 ―
Sharp Sustainability Report 2014
Managing Air and Water Pollutants
Sharp properly manages pollutants that affect air and water quality by determining their concentration and
discharge amount. Each Sharp plant ensures proper management by establishing voluntary standards that are
stricter than those set forth in laws and regulations and than those agreed upon with local communities.
Atmospheric Emissions in Japan
Note: Results for fiscal 2012 and 2013 show an increase in
NOx emissions. This is due to measures to make up for
electricity shortages such as raising the operating rate of
cogeneration systems.
Emissions into Water Areas in Japan
Note: Results for fiscal 2011 show an increase in the
phosphorous pollutant load due to a change in production
chemicals used at Sharp Yonago Corporation; however, it
is still below the maximum level allowed by law.
― 75 ―
Sharp Sustainability Report 2014
[ Logistics ]
Reducing Logistics-Related Environmental Impact
In cooperation with shipping contractors, Sharp is working to reduce the environmental impact of its logistics
activities; for example, by improving transport methods, transport routes, and load efficiency.
Reducing the Environmental Impact of Logistics in Japan
Sharp observes a rule set forth in the Japanese Law Concerning the Rational Use of Energy (Energy Conservation
Law) that requires specified shippers to reduce CO2 emissions per shipping volume by 1% or greater per year. All
Sharp Group companies in Japan are working to steadily reduce the environmental impact and costs associated
with logistics by improving transport and load efficiencies and by shifting to environmentally friendly modes of
transport (modal shift).
In fiscal 2013, Sharp Group CO2 emissions from shipping activities in Japan were 32 thousand tons CO2 (up 8%
from the previous fiscal year). Emissions per shipping volume were 0.2 tons CO2/thousand ton-km, an average
annual reduction of 4% for the most recent five years.
Since fiscal 2013, Sharp has consolidated its distribution centers located throughout the Tokyo metropolitan area
and the Kinki region into two major distribution centers: one in eastern Japan and one in western Japan. This has
enabled Sharp to reduce the amount of transport between warehouses and, as a result, reduce CO2 emissions.
Sharp is also steadily shifting from conventional trucking to more environmentally friendly modes of transport, such
as rail and shipping (modal shift).
In fiscal 2013, the volume of transport increased compared to the previous fiscal year. But as a result of making use
of railways and reducing the amount of truck transport by choosing optimally located harbors for landing imported
goods, Sharp's rate of modal shift rose to 26.3%. Thanks to such efforts, Sharp was again certified with an Eco Rail
Mark*1 by the Ministry of Land, Infrastructure, Transport and Tourism and the Railway Freight Association.
*1 Products or companies that use a certain amount of rail transport for freight are given Eco Rail Mark certification. Products or companies
use the mark to provide consumers a criterion for choosing products.
― 76 ―
Sharp Sustainability Report 2014
Outstanding Company under Green Logistics Partnership Program
Sharp Trading Corporation*2 and 21 of its logistics partner companies have been commended at the fiscal
2013 Green Logistics Partnership Conference*3, in recognition of using containers on a round-trip basis
via an inland container terminal. At this event, awards were given under the Excellent Green Logistics
Commendation Program, and Sharp Trading and its partners received the METI Minister Award.
When exporting goods, a company conventionally had to bring back empty containers that were used to
transport goods to a harbor; and when importing goods, a company had to return to the harbor empty
containers that had been used to transport received goods. By sharing an inland container terminal, Sharp
Trading and 21 other companies were able always to have containers loaded with cargo both to and from
the harbor. This effective use of container transportation serves to reduce CO2 emissions.
*2 A consolidated Sharp subsidiary handling import and sales of consumer electronics, office equipment, and electronic
*3 Green Logistics Partnership Conference: Organized by the Japan Institute of Logistics Systems, the Ministry of Economy,
Trade and Industry (METI), the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), and other organizations, the
conference strives to encourage shippers and logistics operators to cooperate on reducing CO2 emissions from distribution.
Reducing the Environmental Impact of International Logistics
Sharp has a wide range of initiatives to reduce the amount of CO2 that is emitted as a result of international and
intraregional shipping. The company is reducing airfreight volume as it switches to environmentally friendly modes
of transport and is also improving load efficiency. It is also reviewing shipping routes and is switching to harbors that
are closer to the final destinations for products. Sharp is also switching to suppliers located closer to its factories.
In fiscal 2013, the CO2 emissions from international and intraregional transport of products and devices produced
by Sharp Group companies and shipped to Sharp Group companies came to approximately 215 thousand tons.
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Sharp Sustainability Report 2014
Choosing Optimally Located Harbors for Landing (SER, Russia)
SER, a sales subsidiary in Moscow, Russia, used to
have products made in Thailand delivered first to
Germany and then transported by truck to Moscow. One
of the reasons for this was that the passage of cargo
ships during winter was hindered by the freezing of
sections of the Baltic Sea.
Starting in October 2012, SER began using alternative
shipping means that include taking advantage of
icebreaker ships. Now, products go from Thailand to St.
Petersburg, from where the trip by truck to Moscow is
much shorter—two-thirds shorter, in fact. In fiscal 2013,
SER was able to cut annual CO2 emissions by
approximately 1,420 tons.
― 78 ―
Cargo ship in the Baltic Sea in winter
Sharp Sustainability Report 2014
[ Disposal, Recycling ]
Expanding the Recycling of Used Products
Sharp recycles products that have reached the end of their service life based on three policies: 1) improve the
recycling rate and aim for the effective use of resources, 2) improve the efficiency of the recycling system to reduce
recycling costs, and 3) incorporate recycling technologies into the development and design of products.
Recycling Four Kinds of Home Appliances in Japan (Air Conditioners, TVs,
Refrigerators, and Washing Machines)
As a member of the B Group*1 for home appliance recycling, Sharp has constructed—and is operating—a highly
efficient recycling system consisting of 18 recycling plants in Japan.
In fiscal 2013, Sharp collected about 1.6 million units of the four types of appliances covered by the Home
Appliance Recycling Law. This figure represents a 13% increase over the previous fiscal year, reflecting the impact
of last-minute demand at the end of the fiscal year ahead of the consumption tax hike in April 2014. For all four
appliance types, the B Group's rate of recycling greatly exceeded the legally stipulated levels.
■ Sharp Corporation’s Processing and Recycling Status for Four Home Appliances in Japan (Fiscal 2013)
Units collected
collection sites
and recycled
and recycled
Recycling rate
recycling rate
*1 The B Group consists of Sharp Corporation, Sony Corporation, Hitachi Appliances, Inc., Fujitsu General Ltd., Mitsubishi Electric
Corporation, and other companies.
Effectively Using Resources and Improving Recycling Efficiency at the
Recycling Plant
Sharp and Kansai Recycling Systems Co., Ltd.*2 are joining forces to make effective use of resources and to
improve recycling efficiency.
In fiscal 2013, Kansai Recycling Systems introduced a urethane suction device into the recycling line in order to
collect urethane contained in mixed plastic. This urethane was previously disposed of as waste, but it is now reused
as a blast-furnace reducing agent*3 and for thermal recycling, thus reducing overall recycling costs. Separating
urethane from mixed plastic also enables the recycling of mixed plastic, and the amount recycled expanded from
1,900 tons in fiscal 2012 to 3,000 tons in fiscal 2013.
Also, a shredder/sorter system for non-ferrous material is boosting the efficiency of the dismantling/sorting process
for flat-panel TV substrates. The time it takes to dismantle a flat-panel TV has been reduced by 15% compared to
fiscal 2012 levels.
*2 A consumer electronics recycling company established in Japan with joint investment from Sharp, Mitsubishi Materials Corporation, and
four other companies.
*3 A reducing agent to remove oxygen from ferric oxide in the iron-making process.
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Sharp Sustainability Report 2014
Recycling Training
Sharp is committed to developing and designing products with consideration for their easy collection and
recycling. Since fiscal 2001, to promote easy-to-recycle product design, Sharp has been conducting
design-for-recycling training, aimed mainly at personnel responsible for product planning and design. In
fiscal 2013, 22 people took part.
This training program incorporated seminars, factory tours, and exchanges with employees involved in
dismantling operations. Participants received hands-on experience in dismantling actual products collected
at the recycling plant. The knowledge and experience gained during this training are reflected in the
planning and design of new products.
Hands-on training in dismantling a front-loading
washing machine
Trainees observe a washing machine recycling line
Voice: Words from a Trainee
My job involves designing washing machines. The tour of the
recycling plant gave me a better understanding of how much
work is required in dismantling products and what issues need
to be solved.
My desire is to develop even better products that boast good
design, durability, and recyclability so that they can offer users
higher quality, reliability, and ease of recycling.
Recycling TVs and Other Consumer Electronics in the US (SEC, US)
In September 2007, SEC—Sharp's manufacturing and sales subsidiary in New Jersey—established the Electronic
Manufacturers Recycling Management Company, LLC (MRM) in cooperation with Panasonic Corporation of North
America and Toshiba America Consumer Products, LLC. Tasked with recycling audio-visual products, especially
TVs, the MRM program has since expanded nationwide to offer recycling opportunities at approximately 1,800
collection points.
Reusing and Recycling Copiers in Japan
Sharp is reusing and recycling copiers and MFPs collected both through Sharp distribution channels and through
common industry channels. In fiscal 2013, approximately 30,000 used copiers and MFPs were collected for either
reuse or recycling. The company is also collecting used toner cartridges and remanufacturing them to the same
quality standard of new products, thus assuring that customers will always get the same high quality. Sharp designs
its toner cartridges for easy reuse and recycling; this ensures durability and reduces the amount of time needed to
reprocess used cartridges.
Sharp will continuously work to increase the number of copier/MFP models and toner cartridge types it recycles,
with the goal of expanding reuse and recycling.
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Sharp Sustainability Report 2014
[ Disposal, Recycling ]
Environmental Technologies That Contribute to a Sustainable,
Recycling-Based Society
Sharp's Initiatives for a Sustainable, Recycling-Based Society
As the company strives to contribute to the creation of a sustainable, recycling-based society, Sharp considers
environmental friendliness a key factor in all stages of a product's life cycle, from design to manufacture to disposal.
In particular, Sharp is focusing on recycling materials recovered from used products.
In fiscal 2001, Sharp succeeded in the practical application of closed-loop material recycling (CMR) technology: the
tubs of used washing machines were recycled into material that was used to make new washing machine tubs.
This technology has since been improved over the years to enable recovered plastic to be recycled repeatedly and
reused in parts of new products, for example as shelves and vegetable compartments in refrigerators and rear
cabinets in flat-panel TVs.
In recent years, Sharp developed technology to recycle scrap glass discarded during the LCD panel production
process into highly functional paint and into zeolite, a material that can purify water. With the number of discarded
flat-panel TVs expected to rise greatly in the future, Sharp is focusing its efforts on the recycling of LCD panels, a
key component in such TVs.
Developments in LCD panel glass recycling
Developments in plastic CMR technology
(into new material)
Development of CMR technology and
practical application into PP*1 washing
machine tubs
Development of CMR technology and
practical application into PS*2 refrigerator
Development and practical application of
highly functional paint
Development of basic technology to form
zeolite on surface of LCD panel glass
Development of technology to recover PP
from mixed plastic and CMR technology for
recovered PP and practical application
Development of technology for improving
properties of PC+ABS*3 and practical
application (recycling rear cabinets of
flat-panel TVs)
Development of technology to synthesize
zeolite from waste LCD panel glass and to
put it into practical use (succeeded in mass
production on a kilogram scale)
*1 Polypropylene
*2 Polystyrene
*3 A polymer alloy of polycarbonate and acrylonitrile, butadiene, and styrene (a macromolecular material given new properties as a result of
mixing in several types of polymers).
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Sharp Sustainability Report 2014
― 82 ―
Sharp Sustainability Report 2014
Expanding Closed-Loop Plastic Material Recycling Technology for the
Repeated Reuse of Plastic
Sharp and Kansai Recycling Systems Co., Ltd.*4 jointly developed closed-loop plastic material recycling technology
for the repeated recovery of plastic from used consumer electronics products and its reuse in parts of new
consumer electronics products for the Japanese market. This technology has been in practical use since fiscal
Thanks to the development and introduction of technologies that integrate everything from recovery to quality
control, Sharp has been able to increase the volume of recyclable plastic year after year. These technologies
a technology for recovering high-purity PP from mixed plastic parts and
a technology for improving the
properties of recovered PP and PS materials so that their quality is on a par with that of new materials.
Sharp is currently developing
technology to give materials added value by imparting properties such as flame
retardancy and weather resistance, with the aim of expanding applications for recycled plastic.
In fiscal 2013, Sharp developed a formula for improving the properties of waste PC+ABS plastic recovered from
flat-panel TVs of varying age and manufacturing provenance. The formula involves mixing in additives to the waste
PC+ABS material in order to raise its properties to a level of quality that matches that of new material. Though the
properties of PC+ABS are subject to deterioration over long-term usage, Sharp was able to greatly improve its
properties by mixing in several types of additives in an optimal blend and thereby achieve parts made of 100%
recycled PC+ABS. This recycled PC+ABS was used for internal parts in Sharp's in-vehicle Plasmacluster Ion
generators in fiscal 2013.
This recycled material has also been certified for UL94 V-0, a flammability safety standard released by Underwriters
Laboratories, Inc., a global safety certification company.
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Sharp Sustainability Report 2014
Sharp in-vehicle Plasmacluster Ion generators
Internal parts
*4 A consumer electronics recycling company established in Japan with joint investment from Sharp, Mitsubishi Materials Corporation, and
four other companies.
Developing Technology to Recycle LCD Panel Glass into New Material
Noticing that a portion of LCD panel glass constituents is similar to zeolite*5, Sharp has been conducting joint
research with Osaka Prefecture University on a technology to synthesize zeolite from LCD panel glass. As well as
being used as a catalyst, zeolite has many other functions, including those involving ion exchange and adsorption.
Recently, zeolite has been attracting attention as an environmental purification material that can help purify water
and improve soil quality.
In fiscal 2012, the joint research team succeeded in developing basic technology for forming zeolite on the surface
of LCD panel glass. This involves using crushed scrap glass discarded during the LCD panel production process. In
fiscal 2013, Sharp successfully mass-produced this material on a kilogram scale.
In fiscal 2014, Sharp will start an experiment to verify the water purification effect of zeolite. Sharp will move forward
on the practical application of this technology and study its application in the recycling of LCD panel glass in
flat-panel TVs.
*5 The generic term for a crystalline, microporous aluminosilicate mineral composed mainly of silicon, aluminum, and oxygen.
― 84 ―
Sharp Sustainability Report 2014
[ Biodiversity Protection ]
Protecting Biodiversity
Under the Sharp Group Policy on the Sustainable Support of Biodiversity, the Sharp Group carries out a
multifaceted approach in which it protects biodiversity through business activities and social action programs at all
worldwide bases.
Biodiversity Protection through Business and Social Action Programs
Biodiversity refers to the existence of a variety of ecosystems, species, and genes. With the modern world's
environmental pollution, more and more species are becoming extinct and ecosystems are in danger.
While Sharp's business activities impact biodiversity, the company also benefits from the resources that biodiversity
provides. That is why Sharp is promoting activities to protect biodiversity and use it sustainably.
Based on the Sharp Group Policy on the Sustainable Support of Biodiversity, Sharp formulated the Sharp
Biodiversity Initiative in November 2009, which details concrete measures for business activities and social action
programs that take biodiversity into account. In fiscal 2013, Sharp continued to implement various measures based
on the Sharp Biodiversity Initiative, while each Sharp base conducted various activities geared to its own situation.
Sharp Group Policy on the Sustainable Support of Biodiversity
1. Basic Concept
Based on the company-wide policy, conduct business activities and social action programs while protecting
biodiversity and using it in a sustainable manner.
2. Objective: Understand the Link with Biodiversity
Understand the link between business activities and biodiversity (how Sharp business activities affect and benefit
from biodiversity).
3. Objective: Reduce Impact on Biodiversity
Try to reduce the negative impact of business activities on biodiversity so as to protect biodiversity and use it in a
sustainable manner.
4. Promotion Structure
Sharp divisions in charge of environmental protection and social contribution are responsible for company-wide
activities pertaining to biodiversity.
Related information:
[ For Local Communities ] Environmental Activities
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Sharp Sustainability Report 2014
Biotope Preserves Indigenous Species (SMF, France)
Since 2010, SMF, a manufacturing subsidiary in Soultz, France, has been collaborating with a local
environmental association in creating on its grounds a biotope* with a man-made pond. The pond has
been landscaped so as to recreate nature as much as possible: it has a gently sloping bank, curving
shorelines, and varying water levels. SMF carries out periodic maintenance to prevent non-native species
from propagating and has also created a list of the flora and fauna that live in and around the pond to
facilitate ecosystem observations. In just three years, the pond, which was created on an idle plot of land,
has turned into a nature-rich environment where various local species thrive, including amphibians and
In fiscal 2013, SMF installed on its grounds a beehive in an effort to provide a safe place for honeybees,
whose diminishing numbers have become a worldwide problem. It also installed shelters for insects such
as ladybugs and bumblebees. SMF is expanding its eco activities to include tree planting.
* A space for recreating rich ecosystems
Plot of land in 2010
Man-made pond in 2013
Voice: Words from an Employee
In our desire to preserve the environment at SMF, we have
been collaborating with a local association for environmental
education in Alsace. Over the years, the ideas suggested by
the association have been carried out, such as the
establishment of country hedges and beehives. The most
interesting idea for SMF was the establishment of a pond,
because it contributes to a real development of fauna and
flora. Nowadays, it is very critical to create ponds, since
wetlands are starting to disappear. The pond is a remarkable
and effective way to raise awareness among SMF staff.
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Sharp Sustainability Report 2014
[ Boundary of Environmental Performance Data, Calculation Standards for Environmental
Performance Indicators ]
Boundary of Environmental Performance Data, Calculation
Standards for Environmental Performance Indicators
The Environmental Performance Data (actual) found in the pages of the Environmental Activities are calculated
based on the following boundary and calculation standards.
Period Covered
April 1, 2013 to March 31, 2014
Boundary of Environmental Performance Data
Sharp Corporation and consolidated subsidiaries
Plants: 30 plants/20 companies (15 plants/5 companies in Japan, 15 plants/15 companies overseas)
Offices: 38 offices/31 companies (14 offices/7 companies in Japan*1, 24 offices/24 companies overseas)
Tochigi Plant
Yao Plant
Hiroshima Plant
Nara Plant
Katsuragi Plant (including Toyama Plant performance)
Sharp Corporation
Fukuyama Plant
Mie Plant
Tenri Plant (including Advanced Materials & Energy Engineering
Laboratories performance)
Mihara Plant
Kameyama Plant
Sakai Plant
Sharp Manufacturing Systems Corporation
Sharp Niigata Electronics Corporation
Sharp Mie Corporation
Sharp Yonago Corporation
Sharp Corporation
Sharp Electronics Marketing Corporation
Sharp Business Solutions Corporation
Sharp-Engineering Corporation
Sharp Energy Solutions Corporation
Sharp Trading Corporation
Sharp Business Computer Software Inc.
*1 Head Office/Tanabe Building, Hirano Building, Kami Building, Fujiidera Building, Hannan Building, Shibaura Building, Makuhari Building,
Sapporo Building, Hiroshima Building, Ebisu Building, Nagoya Building, Sendai Building, Fukuoka Building, Okinawa Building
― 87 ―
Sharp Sustainability Report 2014
North America
Sharp Manufacturing Company of America (SMCA)*2
Sharp Electrónica Mexico S.A. de C.V. (SEMEX)
Baja California
Sharp Electronics Corporation (SEC)
Sharp Laboratories of America, Inc. (SLA)
New Jersey
Sharp Electronics of Canada Ltd. (SECL)
Sharp Corporation Mexico S.A. de C.V. (SCMEX)
Mexico City
*2 Manufacturing division of SEC
Sharp Manufacturing Company of U.K. (SUKM)*3
Wrexham, North
Sharp Manufacturing France S.A. (SMF)
Sharp Manufacturing Poland Sp.zo.o. (SMPL)
Sharp Electronics GmbH (SEG)
Sharp Electronics (U.K.) Ltd. (SUK)
Sharp Laboratories of Europe, Ltd. (SLE)
Sharp Electronics France S.A. (SEF)
Sharp Electronics (Italia) S.p.A. (SEIS)
Sharp Electronics (Schweiz) AG (SEZ)
Sharp Electronics (Nordic) AB (SEN)
Sharp Electronics Benelux B.V. (SEB)
Netherlands Houten
Sharp Electronics Russia LLC. (SER)
*3 Manufacturing division of SUK
Asia, Middle East, Oceania
Shanghai Sharp Electronics Co., Ltd. (SSEC)
Nanjing Sharp Electronics Co., Ltd. (NSEC)
Sharp Office Equipments (Changshu) Co., Ltd. (SOCC)
Wuxi Sharp Electronic Components Co., Ltd. (WSEC)
Sharp Appliances (Thailand) Ltd. (SATL)
Sharp Manufacturing (Thailand) Co., Ltd. (SMTL)
Sharp Manufacturing Corporation (M) Sdn. Bhd. (SMM)
Sharp (Phils.) Corporation (SPC)
Philippines Manila
PT. Sharp Semiconductor Indonesia (SSI)
PT. Sharp Electronics Indonesia (SEID)
― 88 ―
Sharp Sustainability Report 2014
Sharp Electronics (Shanghai) Co., Ltd. (SES)
Sharp Electronic Components (Taiwan) Corporation (SECT)
Sharp Electronics (Malaysia) Sdn. Bhd. (SEM)
Sharp Electronics Sales (China) Co., Ltd. (SESC)
Sharp-Roxy Sales (Singapore) Pte., Ltd. (SRS)
Sharp Electronics (Singapore) Pte., Ltd. (SESL)
Sharp Software Development India Pvt. Ltd. (SSDI)
Sharp Middle East Free Zone Establishment (SMEF)
Sharp Corporation of Australia Pty. Ltd. (SCA)
New South Wales
Sharp Corporation of New Zealand Ltd. (SCNZ)
Calculation Standards for Environmental Performance Indicators
Environmental performance indicators
Calculation method
Amount of heat from purchased electricity and consumed fuel,
calculated based on the Japanese Ministry of the Environment's
Greenhouse Gas Emission Calculation and Reporting Manual
(ver. 2.4)
Million m3
Consumption and recycled use of industrial-use water, tap
water, and groundwater
HFCs, PFCs, sulfur hexafluoride (SF6), nitrogen trifluoride
(NF3), and HCFCs purchased annually
(PRTR) handled
Among the substances covered under the PRTR Law*1, the
total amount of substances handled annually at each plant in
quantities of 500 kg or more
*1 Law Concerning Reporting, etc. of Releases to the Environment of
Specific Chemical Substances and Promoting Improvements in Their
Total weight of products in the 13 major categories*2 sold in
fiscal 2013 (estimate), plus waste, etc. generated
*2 TVs, air conditioners, refrigerators, washing machines, air purifiers,
microwave ovens, LED lights, Blu-ray Disc recorders, facsimiles, mobile
phones, LCD monitors, MFPs, solar cells
Product use
(4 kinds)
Amount of
plastic material
Revised ton-km method
Estimate of annual energy used by products in the 13 major
categories*2 sold in 2013. Calculation based on each product's
annual energy consumption rate (using a heat input per unit of
9.97 MJ/kWh).
Thousand Amount of used home appliances (4 kinds) recycled into new
home appliances
Amount of recycled copiers
Amount of recycled PCs
Amount of closed-loop plastic material recycling
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Sharp Sustainability Report 2014
Environmental performance indicators
Calculation method
CO2 emissions from purchased electricity
Using CO2 emissions intensity (kg-CO2) published in the
Electric Power Industry's Environmental Action Plan,
announced by the Federation of Electric Power Companies
of Japan
(FY2009: 0.351, FY2010: 0.351, FY2011: 0.350, FY2012:
0.476, FY2013: 0.487)
gas emissions
tons CO2
Using GHG Protocol Calculation Tools (GHG emissions
from purchased electricity ver. 4.4)
CO2 emissions from consumed fuel
Using emission coefficient published in the Ministry of the
Environment's Greenhouse Gas Emission Calculation and
Reporting Manual (ver. 2.4)
Greenhouse gases other than CO2
Using global warming potential published in the IPCC's
Third Assessment Report
Million m3
Annual drainage into public body of water and sewer system
Among the substances covered under the PRTR Law*1, the
manufacture released and
total amount of substances (handled annually at one or more
plant in quantities of 500 kg or more) that were released and
*1 Law Concerning Reporting, etc. of Releases to the Environment of
Specific Chemical Substances and Promoting Improvements in Their
NOx emissions
Annual drainage
SOx emissions
Annual drainage
Drainage into a public body of water
pollutant load
Drainage into a public body of water
pollutant load
Drainage into a public body of water
COD (chemical
Waste, etc.
Final landfill
Thousand Industrial waste + general office waste + valuable resources
Final landfill disposal of industrial waste + final landfill disposal
of general office waste
Total weight of products in the 13 major categories*2 sold in
fiscal 2013 (estimate)
*2 TVs, air conditioners, refrigerators, washing machines, air purifiers,
microwave ovens, LED lights, Blu-ray Disc recorders, facsimiles, mobile
phones, LCD monitors, MFPs, solar cells
CO2 emissions
Product use
CO2 emissions
Disposal after
Revised ton-km method
tons CO2
tons CO2
Estimate of annual energy used and amount of CO2 emitted by
products in the 13 major categories*2 sold in 2013. Calculation
based on each product's annual energy consumption rate.
[Weight of 4 kinds of home appliances, PCs, and copiers
collected] – [Weight recycled into new products or materials, or
― 90 ―
Sharp Sustainability Report 2014
[ For Customers ]
Offering Products and Services That Deliver Peace of Mind and
Constantly thinking from the customer's point of view in order to develop and provide products and services that
customers find useful is one of Sharp's fundamental values. Sharp is also applying customer feedback toward
making better products that customers can rely on for years and is striving to improve sales and after-sales service.
Sharp seeks to satisfy customers so that they choose Sharp now, next time, and every time.
Message from a Manager
Striving to Build a Relationship of Trust through Quality and Service so that Customers Choose
Sharp Now, Next Time, and Every Time
Sharp strives to satisfy its customers from production to after-sales
services by providing products and services quickly and reliably in
a manner that provides peace of mind. These efforts are made so
that customers choose Sharp next time and every time.
For this reason and to constantly improve product safety, Sharp
has established its own technical safety standards to adhere to in
addition to the safety standards stipulated by law.
Based on a user-centered design concept, Sharp carries out
usability tests, starting from the planning/design stage. All the
while, Sharp works to reflect customer feedback, received through
its Customer Assistance Center, in the development of products
that are instinctively easy to use.
As for service, Sharp certifies service staff having the highest
repair skills and quality as CS Meisters, a designation that increases customers' trust in Sharp. To resolve problems
as quickly as possible, descriptions of actual repairs and of support activities conducted online and via phone are
updated daily, according to customer status, by a project team representing several divisions.
In order to globally develop the Sharp CS mindset, Sharp will spread the measures conducted by its bases in
Japan to its bases overseas, especially those in emerging markets such as China and ASEAN countries, and will
actively promote quality and CS training there.
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Sharp Sustainability Report 2014
[ For Customers ]
Offering Products and Services That Deliver Peace of Mind and
Ensuring Quality and Safety
Basic Stance and Vision on Service and Quality
To gain customer trust and improve customer satisfaction, the Sharp Group meets customer needs and demands,
and offers high-quality products and services that are safe, reliable, and environmentally friendly.
Quality and Service Promotion System
Sharp undertakes all its business activities from product development through sales and service based on
management from the customer's point of view and has established the CS and Environmental Promotion Division
as a company-wide promotion organization to further boost product quality and safety as well as customer
Sharp has established a CS Promotion Center and a Quality Assurance Department that undertake product service
and quality control in each business division. The Sharp Group, including overseas bases and subcontractors, has
also established a system for building relations of trust with customers by providing safe, high-quality products and
In fiscal 2013, a new global quality education program was established to promote quality and service personnel
training overseas. This was introduced at six bases in China and at eight bases in other parts of Asia. Quality and
technology training sessions were provided to a total of 714 participants. Furthermore, in order to strengthen
personnel training based on local needs, a quality and service management training program was implemented for
local service managers.
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Sharp Sustainability Report 2014
Quality Assurance System
Sharp specifies the quality levels it provides to customers, thus ensuring that all employees in product planning,
design, production, sales, and after-sales service aim for the same targets in their ongoing pursuit of quality
improvement. All Sharp Corporation business divisions and all production sites of consolidated subsidiaries in
Japan and abroad have obtained the international ISO 9001 certification of quality management.
They have also adopted the SHARP Corporation Standards—the Sharp Group's proprietary quality assurance
standards—and conduct various quality assurance activities in each stage of the product-making process—from
planning, design, and manufacture to testing/evaluation and marketing.
Related information:
ISO 9001-certified sites
Efforts to Ensure Product Safety
At Sharp, product safety is based on adherence to the safety standards, laws, and regulations of every country. In
addition, Sharp has its own technical safety standards, which are applied to all products. Through these standards,
Sharp aims to ensure product safety even when rare and unexpected problems arise, especially concerning issues
such as incombustible material usage and abnormal motion detection. To ensure an even higher level of safety,
Sharp revises the standards whenever the need arises. Also, Sharp has built a system for ensuring product safety,
so that unexpected product problems can be dealt with more swiftly and precisely.
Along with responding in a timely manner to changes in the social situation and revisions to laws pertaining to
product safety, Sharp will continue to increase its efforts at offering products that customers can use with peace of
Educational Activities in Japan for the Safe Use of Products
Through its website and pamphlets, Sharp is enlightening
customers on the safe use of its products.
To prevent customers from experiencing any unexpected
disadvantage from unsuitable methods of use or installation
locations, Sharp posts advice for safe usage on its website and
actively provides information.
Web page showing advice for safe usage
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Sharp Sustainability Report 2014
Disclosure of Information When Quality Problems Arise
In the event that a Sharp product is found to be responsible for injury to customers or for damage to property, Sharp
will disclose relevant information immediately in newspapers and via its website, or through other methods. Sharp
also has contact points to directly receive inquiries from customers and is striving to keep quality problems to an
absolute minimum.
During fiscal 2013, Sharp notified customers as below, providing free-of-charge inspection, repair, and product
Based on the Sharp Voluntary Product Safety Action Policy, Sharp also releases on its website details of serious
accidents that are suspected to be or have been judged to be caused by a Sharp product and that have been
reported to the Consumer Affairs Agency and the Ministry of Economy, Trade and Industry in Japan.
Free-of-Charge Inspection and Repair
Automatic washing machine for Japan (July 2013)
In response to the risk of ignition in some washing machines due to the binding condition of wires in internal
electrical components and to vibrations and other installation-related factors, Sharp conducted free inspections
and parts replacement.
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Sharp Sustainability Report 2014
[ For Customers ]
Offering Products and Services That Deliver Peace of Mind and
ISO 9001-Certified Sites
Business Divisions and Subsidiaries in Japan
As of July 2014
Certified Sites (Companies)
Locations (City, Prefecture)
Yaita, Tochigi
Digital Information Appliance Division
Kameyama, Mie
Yamato-Koriyama, Nara
Communication Systems Business
Higashi-Hiroshima, Hiroshima
Communication Systems Division
Health and Environment Systems Division
Energy System Solutions Division
Kobe, Hyogo
Yao, Osaka
Katsuragi, Nara
Sakai, Osaka
Business Solutions
Business Solutions Development Division
Document Solutions Division
Business Solutions Promotion Division
Yamato-Koriyama, Nara
Osaka, Osaka
Electronic Components and Devices Division
Katsuragi, Nara
Tenri, Nara
Mihara, Hiroshima
Fukuyama, Hiroshima
Display Device Development Division
Kameyama, Mie
Taki, Mie
Display Device Business Division
Tenri, Nara
Minato Ward, Tokyo
Sharp Manufacturing Systems Corporation
Yao, Osaka
Sharp Engineering Corporation
Osaka, Osaka
Yaita, Tochigi
Sharp Niigata Electronics Corporation
Niigata, Niigata
Kashiwazaki, Niigata
Sharp Yonago Corporation
Yonago, Tottori
Sharp Mie Corporation
Tsu, Mie
Sharp Tokusen Industry Corporation
Osaka, Osaka
Sharp Business Solutions Corporation
Minato Ward, Tokyo
Osaka, Osaka
Chiba, Chiba
The above list of certified sites shows the site names in use as of July 2014.
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Sharp Sustainability Report 2014
Overseas Production Sites
As of July 2014
Certified Sites (Companies)
Sharp Manufacturing Company of America
Sharp Electrónica Mexico S.A. de C.V.
Sharp Manufacturing Company of U.K.
Sharp Manufacturing France S.A.
Sharp Manufacturing Poland Sp. z o.o.
Shanghai Sharp Electronics Co., Ltd.
Nanjing Sharp Electronics Co., Ltd.
Sharp Office Equipments(Changshu)Co., Ltd.
Wuxi Sharp Electronic Components Co., Ltd.
Shanghai Sharp Mold and Manufacturing Systems Co., Ltd.
Sharp Korea Corporation Ltd.
Sharp Manufacturing Corporation(M)Sdn. Bhd.
S & O Electronics(Malaysia)Sdn. Bhd.
Sharp Appliances(Thailand)Ltd.
Sharp Manufacturing(Thailand)Co., Ltd.
P.T. Sharp Electronics Indonesia
P.T. Sharp Semiconductor Indonesia
Sharp India Limited
― 96 ―
Sharp Sustainability Report 2014
[ For Customers ]
Offering Products and Services That Deliver Peace of Mind and
Making Easier-to-Use Products
Applying Customer Feedback to the Making of Products
In order to deliver products that customers find easy to use, Sharp is implementing VOC (Voice of the
Customer)/VOS (Voice of the Service Staff) activities so that customer evaluations and opinions are put to use
when products are made. Feedback received from customers during telephone assistance at the Customer
Assistance Center, during repair service visits, and in Web-based questionnaires is shared throughout the
company, while protecting the anonymity of the customer. The feedback is used to understand, from a user's point
of view, challenges related to planning, design, development, quality, sales, service, and other areas.
With a focus on issues raised through customer feedback, the customer service departments and the development,
quality, and sales departments work together to consider ideas for improvement and exchange opinions in order to
create products that are even more appealing and easier to use and even better services.
In addition to activities to improve products, Sharp also actively fosters human resources through training and
creates assessment standards for supporting manufacturing from the user's point of view in order to conduct
user-oriented manufacturing, sales, and service.
Customer Questionnaires
In Japan, Sharp customers who receive repair
visits are administered questionnaires that ask for
feedback on all steps of the assistance from
reception to repair completion. In one year, Sharp
receives approximately 350,000 invaluable
responses from customers. The opinions and
requests received are passed on as feedback to
the staff members involved in the repair and are
also subjected to detailed analysis for use in
manufacturing and service policies.
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Sharp Sustainability Report 2014
Investigating Customers' Latent Dissatisfaction and Needs Pertaining to Usability and Reflecting
Them in Product Design
Based on the concept of user-centered design (UCD), as outlined in the international ISO 9241-210 standard,
Sharp investigates customers' latent dissatisfaction and needs as part of its product development process and
reflects those findings in the specifications and design of its products.
In addition to getting feedback from its Customer Assistance Center in Japan, Sharp uses field research, surveys,
and usability tests (observing how customers actually use Sharp products) to collect information on how customers
interact with products. That information is compiled and analyzed to create products that are appealing from three
perspectives: products that customers want to use, products that are easy to use, and products that customers will
want to continue using for a long time.
Sharp also promotes the manufacture of products that take into consideration universal design, so many more
customers can comfortably use its products. As of March 2014, 159 models of 19 Sharp products had been
recognized as universal design home appliances by the Association for Electric Home Appliances in Japan.
Through activities such as these, Sharp is raising the appeal of its products.
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Sharp Sustainability Report 2014
[ For Customers ]
Offering Products and Services That Deliver Peace of Mind and
Product Improvement Case Studies
Humidifying Air Purifier (KI-DX85/70/50)
― 99 ―
Sharp Sustainability Report 2014
Electronic Dictionaries (PW-SB1/SA1/SH1/SJ1)
― 100 ―
Sharp Sustainability Report 2014
PN-L703A BIGPAD Touch Display
Related Information:
BIGPAD Touch Display Product Information
― 101 ―
Sharp Sustainability Report 2014
[ For Customers ]
Offering Products and Services That Deliver Peace of Mind and
Boosting Customer Satisfaction
Customer Service That Exceeds Expectations
From the moment a customer first considers buying a Sharp product, Sharp's Customer Assistance Center in
Japan always aims to meet or exceed customer expectations.
All Customer Assistance Center agents (operators) are periodically monitored by a response-quality manager.
Based on those results, agents undergo training to improve their responsiveness in terms of providing assistance
that matches the customer inquiry as well as their methods of speaking and listening. This enables the agents to
maintain a high level of response skills while also boosting their awareness of customer satisfaction.
In fiscal 2013, Sharp enhanced the support section of its website so that customers can solve problems without
calling the Customer Assistance Center. The website provides enhanced customer-oriented services that include
Fault Diagnosis Navigation, where customers themselves diagnose the symptoms and solve problems by following
instructions on the screen. In fiscal 2013, the number of product categories covered (such as LCD TVs, Blu-ray
Disc recorders, washing machines, air conditioners, refrigerators, fax machines, and phones) was increased.
There's also the Visual Guide, which employs video images to explain how to maintain products—something that
can be difficult to explain with just words and illustrations. In addition, customers can use either a PC or a
smartphone to access the customer support section of the website and request a repair visit.
The Customer Assistance Center has a toll-free number that gives automated responses to help callers solve
common issues. This is particularly convenient late at night, when customers can receive troubleshooting
assistance even when agents are unavailable.
The number of inquiries to the Customer Assistance Center went down after peaking in 2010. This reduction can be
attributed in part to the termination of the Japanese government's Eco-Point system, a system that fueled product
demand, and to the end of terrestrial analog broadcasting. The ability of customers to solve problems by
themselves using the previously mentioned online support and toll-free number was also a contributing factor.
Sharp will continue to enhance its support services to help customers solve problems anytime and with ease.
Visual Guide (in Japanese)
For inquiries that are difficult to answer with just words, an
explanation is provided via serial photographs (or via a simple
video). The contents of the guide will be expanded to further
assist customers in solving problems.
Visual guide (movie capture)
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Sharp Sustainability Report 2014
Improving the Web-Based Repair Request Function in Japan
Improvements made to online support functions allow customers to select their preferred repair date when using
the Sharp website to request a repair visit. Customer convenience was also improved by providing a repair-visit
cancel function on the same web page.
Additional measures taken to improve customer convenience included providing support for web-based repair
requests via smartphone, in response to the widespread adoption of these devices.
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Sharp Sustainability Report 2014
Technical Training for Air Conditioners in Malaysia
From December 17 to 19, 2013, the CS Division in Malaysia held technical training sessions focused on
after-sales service for air conditioners. Attending the training were 16 service instructors and technicians
from sales companies in the ASEAN nations of Malaysia, Singapore, and Vietnam. A technical support
instructor from Sharp Engineering Corporation—an after-sales service company in Japan—discussed
adopting a service mindset based on the uniquely Japanese style of omotenashi hospitality.
To address the issue of complaints regarding the poor installation of air conditioners in ASEAN countries,
the curriculum was focused on installation techniques. By the last day, all participants were able to
smoothly and correctly install air conditioners.
Along with training on installation techniques, participants were given practical training on the basic
functions of air conditioners and how to handle problems that arise in customers' homes. Attendees
appreciated the combination of practical know-how and background theory they received.
Going forward, Sharp will further improve customer satisfaction and the quality of its customer service in
Japan, in order that it may serve as a role model of high-quality after-sales service for the ASEAN region
and the world.
Technical training session
Voice: Words from a Technical Training Instructor
This training helped to remind the overseas participants of the
importance of providing product explanations to customers so
that they may use Sharp products with peace of mind,
regardless of differences in the users' environments.
These training sessions were also very instructive for me, and I
would like to put the experience to use in our ongoing efforts to
improve after-sales service in Japan.
― 104 ―
Sharp Sustainability Report 2014
High Customer Satisfaction Leads to Service Excellence Award in Indonesia
In 2013, P.T. Sharp Electronics Indonesia (SEID), Sharp's Indonesian sales and manufacturing base, received its
first ever Call Center Service Excellence Award. The award system was developed through a collaboration between
Carre-CCSL, a customer satisfaction consultant, and Service Excellence a leading economic publication managed
by the Marketing Magazine Group. The performance of call centers was assessed through mystery calls*
conducted over a period of six months, with callers using service-ranking indices to assess the quality of services
Four companies received the Excellence award in the field of household appliances: LG, Sony, Samsung, and
Sharp. Ranked second only to LG, SEID attributed Sharp's award success to initiatives carried out from last year,
including telephone skills training and the introduction of a knowledge system. Aiming to win the top ranking in the
future, SEID will continue to further improve its services.
* Mystery call: a survey conducted by undercover investigators posing as customers to ascertain the quality of service at contact centers.
Call Center Service Excellence Award
SEID call center manager
Analysis and Evaluation Technology Center to Support Product Development and Production in
In China, Sharp manufactures and exports household appliances such as white goods and LCD TVs; office and
commercial products such as multi-function copiers, information displays, and LCD projectors; and electronic
devices such as camera modules and small LCD modules used in smartphones and cars. In recent years, activities
in China have expanded from simple production to encompass an increasing number of product development
projects. In light of this trend, Sharp established an Analysis and Evaluation Technology Center in Wuxi City,
Jiangsu Province in January 2012 to provide technical support to Sharp's bases in China.
As well as providing feedback to development, technical, and manufacturing departments, the center conducts
stringent inspections to ensure that components and materials used in products meet the quality standards of the
Sharp brand. Specifically, the following inspections are carried out for components and materials procured within
Scientific analysis (non-defective product analysis, specification verification, failure analysis)
Component reliability evaluation (evaluation of reliability under stress, considering factors such as length of
use, temperature, and humidity changes)
Environmental regulation compliance assessment (RoHS, REACH compliance)
This high-precision analyzer verifies that plastic components do not contain
restricted chemicals.
― 105 ―
Sharp Sustainability Report 2014
Creating Services and Products that Brighten Up and Invigorate the Lives of Customers
Sharp has been running a 'LOVE.LIFE'-themed campaign targeting families in Malaysia, Indonesia, Thailand,
Vietnam, Philippines, and Singapore—countries where Sharp's Southeast Asian sales companies are located. The
ongoing campaign aims to brighten up and invigorate the lives of customers by providing value-added products and
Sales promotion campaign in Vietnam
― 106 ―
Sharp Sustainability Report 2014
[ For Business Partners ]
Mutual Prosperity with Suppliers and Dealers
Through close communication with all business partners and through activities that deepen mutual understanding,
Sharp is promoting CSR activities across the supply chain.
Message from a Manager
Enhancing Global Procurement through CSR
Sharp develops its business around the world. Based on Sharp's
Basic Purchasing Principles, which clearly stipulate that Sharp will
achieve prosperity together with its suppliers, the Procurement
department procures necessary components and materials from
the global market, while securing good quality, optimal cost, and
steady delivery time, thereby contributing to the provision of the
value-added products that customers seek.
In addition to such material procurement activities, Sharp executes
CSR across its entire supply chain, pursuing sustainable and
ethical procurement activities while cooperating with its business
partners. Sharp's focus on procurement-related CSR includes the
conflict minerals issue pertaining to human rights and labor
protection, control of hazardous chemicals as an initiative to
protect the environment, fair trade, and elimination of trade with
subversive companies.
Last year, Sharp revised the Sharp Supply-Chain CSR
Deployment Guidebook, created and published in 2007, to add an
article on the "Coordinated Response to the Conflict Minerals
Issue"—an issue that has received much attention in recent years. In addition, Sharp plans to introduce a CSR
procurement audit from this fiscal year in collaboration with external audit organizations.
Going forward, Sharp plans to expand such activities to the entire supply chain to further enhance global
procurement through CSR.
I would like to ask for the support and cooperation of all related parties.
― 107 ―
Sharp Sustainability Report 2014
[ For Business Partners ]
Mutual Prosperity with Suppliers and Dealers
Fair and Impartial Procurement Activities
Determining Procurement from the Standpoint of Providing Equal Opportunity and Fair Evaluation
Sharp has production activities around the world and chooses who it will procure local parts, materials, and
equipment from by providing all Japanese and overseas suppliers with an equal opportunity to do business with
Sharp. This opportunity includes a fair evaluation of whether a supplier meets Sharp's requirements for quality,
standards, and performance.
Sharp aims to maintain impartiality and fairness in all purchasing activities, in order to facilitate a prosperous
coexistence with business partners.
Close Communication and Mutual Understanding
To ensure continued mutual growth and prosperity and to achieve sustainable development with its suppliers,
Sharp is going beyond initiatives related to the quality, price, and delivery of parts and materials. Through CSR
initiatives across the supply chain, Sharp is also seeking to fulfill its social responsibilities over a wide range of
areas that include product safety, environmental protection, human rights and labor, and health and safety.
In both the Basic Purchasing Principles and the Sharp Supply-Chain CSR Deployment Guidebook, which
summarizes Sharp's basic concept on supply-chain CSR promotion based on the Basic Purchasing Principles,
Sharp clearly declares the implementation of CSR initiatives—such as complying with all laws, regulations, and
social standards, and protecting the environment—as one of its procurement policies. Examples include prohibition
of child/forced labor and discrimination, as well as compliance with labor-related laws, such as those dealing with
employees' right to organize and their right to collective bargaining. Sharp also asks its business partners to
actively promote such activities.
To deepen the understanding between Sharp and its business partners, Sharp business divisions and overseas
production bases have been holding regular roundtables and meetings for their suppliers. In addition, Sharp
exchanges information with supplier sales representatives on a daily basis.
Related information:
Basic Purchasing Principles
― 108 ―
Sharp Sustainability Report 2014
Audits and Education to Ensure Full Compliance with the Subcontract Act
To comply with the Subcontract Act (Act Against Delay in Payment of Subcontract Proceeds, etc. to
Subcontractors) in Japan, Sharp Corporation and its affiliated companies implement compliance checks and
in-house education on an ongoing basis.
Regarding compliance checks, in fiscal 2009, to encourage internal voluntary reporting of compliance issues and
further strengthen precautionary measures to prevent recurrence of problems, the material purchase and
subcontractor supervision departments of all business groups, as well as Head Office groups and affiliated
companies, began self-audits in which they check how well they are complying with the Subcontract Act.
In fiscal 2013, in order to deepen employee understanding of the Subcontract Act and ensure compliance, seven
newsletters (Volumes 1 to 7) on the Subcontract Act were uploaded on the company intranet. The newsletters
describe the type of prohibitions and transactions that are subject to the Subcontract Act in an easy to understand
context to ensure thorough compliance.
At Sharp's affiliated companies in Japan, training on the Subcontract Act was held at each company, with the
persons in charge of Subcontract Act compliance acting as lecturers and using teaching materials customized to
match each company's business transactions and operations.
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Sharp Sustainability Report 2014
[ For Business Partners ]
Mutual Prosperity with Suppliers and Dealers
Promoting CSR across the Supply Chain
Promoting CSR Measures
In fiscal 2007, to help its suppliers gain an understanding of Sharp's CSR philosophy and promote CSR-related
measures among suppliers, Sharp created its own Sharp Supply-Chain CSR Deployment Guidebook and
distributed it to major suppliers. It was also made available on the Sharp website.
This guidebook is based on the Supply-Chain CSR Deployment Guidebook produced and distributed by the Japan
Electronics and Information Technology Industries Association (JEITA). Through this initiative, Sharp is advancing
CSR efforts throughout the supply chain by requesting that suppliers around the world step up their efforts in areas
related to CSR.
Since fiscal 2007, Sharp has been increasing common understanding about CSR in the supply chain by having its
suppliers fill out CSR procurement surveys based on this guidebook. Furthermore, in 2011, Sharp amended the
Basic Parts Purchase Agreement signed with partners in Japan to add an article on CSR initiatives that requests
adherence to the policies stipulated in the guidebook. The company worked steadily to reenter these agreements
with domestic suppliers in fiscal 2013. In the future, Sharp plans to deploy these activities for its overseas suppliers.
Related information:
Sharp Supply-Chain CSR Deployment Guidebook
― 110 ―
Sharp Sustainability Report 2014
CSR Procurement Survey Status
Since fiscal 2007, Sharp has been implementing globally a CSR procurement survey using an online response
system to enable suppliers to use the Internet to enter answers to self-checks based on the Sharp Supply-Chain
CSR Deployment Guidebook. Sharp requests improvement of CSR initiatives from suppliers who have ranked D in
their results for a particular survey area—or who have ranked C or below for two years in a row—by having them
prepare and submit a corrective action plan.
In fiscal 2013, Sharp conducted a sixth survey of suppliers in Japan, a fifth survey of suppliers in China and
Malaysia, and a fourth survey of suppliers throughout the Asian region, as well as in Europe and North America. To
date, the surveys have been completed by approximately 2,300 suppliers (at approximately 4,200 sites) worldwide.
In fiscal 2012, to further promote suppliers' voluntary CSR activities, Sharp began providing feedback on evaluation
results to both respondent and supplier managers. Such activities have taken root in Japan in fiscal 2013 and will
be deployed for overseas suppliers in fiscal 2014.
As a result of surveys carried out to date and requests for improved initiatives, the number of A-ranked suppliers is
increasing each year. Moving forward, Sharp will continue administering surveys once a year in principle. By
requesting improvements as needed and providing supportive measures, Sharp will use these surveys as an
opportunity to improve communication with suppliers, thereby continuously raising the level of CSR initiatives
throughout the supply chain.
CSR Audit Status
Sharp promotes a CSR audit structure in which the CSR procurement survey results submitted by suppliers during
self-checks are verified on-site by auditors.
In fiscal 2013, auditing tools such as audit manuals and check sheets were revised and optimized in preparation for
a redevelopment of the audit structure.
In fiscal 2014, efforts such as collaborations with specialized external audit organizations will be promoted in order
to introduce and develop a more effective CSR auditing structure that adapts to changes in external and internal
To further contribute to the global society of the future, Sharp will continue to enhance supplier-related CSR
activities throughout the entire supply chain, through systems such as continuous CSR procurement surveys and
― 111 ―
Sharp Sustainability Report 2014
[ For Business Partners ]
Mutual Prosperity with Suppliers and Dealers
Dealing with the Conflict Minerals Issue
In the Democratic Republic of the Congo (DRC), the environmental destruction and inhumane acts against local
residents perpetrated by armed anti-government militia forces have become a major international issue.
Minerals such as tantalum, tin, tungsten and gold mined illegally in the DRC and adjoining countries have become
a source of financing for the armed anti-government militias, and hence, these minerals are called "conflict
minerals." With the establishment of the conflict minerals provision of the Dodd-Frank Wall Street Reform and
Consumer Protection Act in the US in July 2010 and the declaration of the Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected and High-Risk Areas by the OECD, companies that use these
minerals for the manufacture or functionality of their products are being strongly urged to conduct their activities
appropriately, in an effort to cut off funding to such armed forces.
Tin, tantalum, tungsten, and gold are also used in Sharp products; tin, for example, is a component of solder.
Recognizing that resolving the conflict minerals issue is one of the key elements of supply chain CSR, Sharp—as a
member of the global community—has instituted a basic policy and is working to ensure that its activities are
carried out appropriately. That policy reads: "For the purpose of not being complicit in the human rights abuses and
environmental disruptions, etc. associated with conflicts in the Democratic Republic of the Congo, any raw
materials, parts, products, etc. which include any conflict minerals mined illegally in the Democratic Republic of the
Congo or an adjoining country shall neither be procured nor used. In addition, appropriate measures, etc. to that
effect shall be taken."
For some time, Sharp has been requesting that its suppliers put initiatives into practice to fulfill their social
responsibility in areas such as human rights, labor, and the environment, based on Sharp's Basic Purchasing
Principles and the Sharp Supply-Chain CSR Deployment Guidebook.
From fiscal 2012, by participating in the Responsible Minerals Trade Working Group of the Japan Electronics and
Information Technology Industries Association (JEITA), Sharp began adapting its survey activities to EICC/GeSI*,
the Japanese automotive industry, and related industries. Sharp then started using the industrial-standard
EICC/GeSI reporting template to monitor usage of conflict minerals and smelters, beginning with suppliers related
to the device business. In fiscal 2013, Sharp revised the Sharp Supply-Chain CSR Deployment Guidebook to add
an article on the "Coordinated Response to the Conflict Minerals Issue" and requested that suppliers familiarize
themselves with that article and cooperate in the activities outlined there.
In fiscal 2014, Sharp is encouraging its suppliers to actively participate in the Conflict Minerals Inquiry Briefings
organized by JEITA.
Sharp continues to promote awareness of the importance of efforts to resolve the conflict minerals issue.
Additionally, Sharp is promoting responsible mineral procurement through such measures as systematic
investigations for more precise identification of materials-related information, such as country of origin and the
smelters used. Sharp carries out all of these efforts with an eye to achieving an acceptable supply chain.
* EICC/GeSI: leading overseas organization for the promotion of supply chain CSR. EICC (Electronics Industry Citizenship Coalition) is an
alliance of electronics companies. GeSI (Global e- Sustainability Initiative) is an organization for mobile phone manufacturers and
carriers. The two organizations collaborate to promote the formulation of CSR programs within various supply chains. Together, they have
created CFSI (Conflict-Free Sourcing Initiative), which specializes in the conflict minerals issue and in which JEITA is a partner
― 112 ―
Sharp Sustainability Report 2014
[ For Business Partners ]
Mutual Prosperity with Suppliers and Dealers
Joint Efforts with Dealers
Working Together with Dealers to Promote Appealing, Environmentally Friendly Products in Japan
Sharp's sales and marketing divisions in Japan are helping with the CSR activities of dealers. Through workshops
and study sessions, and as part of routine sales activities, individual sales representatives are communicating
information to employees of dealers on topics ranging from environmental issues on the global level to actions they
can take in everyday life to protect the environment.
In turn, dealers are offering customers proposals for environmentally friendly products and ways of using them. And
the dealers themselves are aiming to build environmentally friendly stores by making the most of efforts to conserve
energy and save electricity in their own business.
In Sharp's solutions business, in which Sharp works with corporate customers to create solutions for businesses,
the company is fusing its solar panels, LED lighting, PCI technology, and more with the products of its corporate
customers in an effort to develop environmentally friendly products.
In proposing these initiatives, Sharp sales representatives are taking full advantage of knowledge gained through
taking the Eco Test, which is promoted as a way of helping employees acquire knowledge about environmental
Sharp, working together with its business partners, is engaging in business activities that can contribute to the
environment, while encouraging employees to further improve their skills.
― 113 ―
Sharp Sustainability Report 2014
Overseas: Activities to Strengthen Bonds with Dealers
Sharp's Unique KOTEN Activities
In Asian countries, Sharp is holding KOTEN events that propose more comfortable and convenient lifestyles via the
special features of Sharp products. Strong bonds are created between Sharp's overseas sales companies and its
dealers when they work together to hold these customer-targeted promotional events. And creating a variety of
Japanese-themed events as well as a Japanese ambiance lets visitors experience Japanese culture while also
having fun.
Training and Human Resource Development for Our Dealers
To enable the staff of our dealers to conduct promotional activities
suitable for their respective countries, Sharp supports practical
ATOM* training for improving product knowledge and providing
better customer hospitality.
* ATOM (Attack Team of Market) training is a unique, practical training program
conducted by Sharp. Participants acquire basic skills for serving customers,
basic knowledge required for sales promotion activities, and enhanced sales
techniques through a system for improving product knowledge.
ATOM training in Myanmar
― 114 ―
Sharp Sustainability Report 2014
[ For Shareholders and Investors ]
Enhancing Information Disclosure to Shareholders and Investors and
Responding to Diversifying Investor needs
Through general shareholders' meetings and IR (investor relations) activities that respond to diversifying needs,
Sharp is promoting communication with shareholders and investors and is applying valuable feedback from these
stakeholders to improve management.
Message from a Manager
Contributing to Sustainable Corporate Growth by Engaging Proactively with Investors
Conventional equity investment used to be centered on investors
analyzing information disclosed by companies and making
investment decisions based on it. However, in recent years it has
become increasingly common for investors to work proactively to
achieve higher returns by improving corporate value and
stimulating sustainable growth through constructive discussions
with companies.
Sharp has made efforts to actively hold communications with
shareholders and investors by encouraging closer interactions
between the divisions for which information disclosure is relevant,
such as IR, public relations, and CSR. In April 2014, the IR
department was integrated under the Administrative Control Unit,
since it is becoming ever more important to reflect the voices of
shareholders and investors in corporate management.
Through this reorganization, the administrative control division
and divisions for which information disclosure is relevant will work
in concert, maintain an effective dialogue with capital markets,
and contribute to sustainable corporate growth.
― 115 ―
Sharp Sustainability Report 2014
[ For Shareholders and Investors ]
Enhancing Information Disclosure to Shareholders and Investors and
Responding to Diversifying Investor Needs
Communicating with Shareholders and Investors
IR Disclosure Policy
Sharp discloses information to shareholders and investors in a fair and timely manner, in order to increase trust in
its IR activities and to ensure a proper assessment of Sharp's corporate value in capital markets.
Sharp discloses information designated under the laws and regulations of Japan, and it also adequately discloses
other information, such as business overview, management policy, and strategy.
Related information:
IR disclosure policy
Holding Open General Shareholders' Meetings
Sharp holds ordinary general shareholders' meetings earlier than many other Japanese companies and sends out
early notices of the meetings. It also strives to create an environment that enables shareholders to easily exercise
their voting rights. Efforts include allowing shareholders to exercise voting rights by computers and mobile phones,
participating in an electronic voting platform for institutional investors, and posting English notices about the
meetings on its website. In addition, Sharp is working to further enhance information disclosure, such as by posting
video of the shareholders' meeting on the website the day after the meeting for a certain period of time.
IR Activities Designed to Meet the Diversifying Needs of Investors
Sharp is striving to disclose a wide range of information in a timely and accurate manner, while proactively
engaging in communication with shareholders and investors through domestic and overseas IR activities. It also
provides investors with easy-to-understand information on company performance, such as not only consolidated
financial releases but also presentation materials.
In addition to updating and expanding information on the IR website, Sharp has improved the site's search
capability and viewability. Sharp also strives to provide information needed by investors in a timely manner,
including financial materials and reports given at briefings. There is also a site for individual investors, where they
can easily access relevant information presented in an easy-to-understand format that employs layman's language,
charts, graphs, and figures.
Sharp is continuing to go beyond its legal obligations to supply certain designated information by actively disclosing
additional information about its businesses, as well as its management policies and strategies.
Investor relations website
2014 Annual Report
Related information:
Investor relations
Annual report
― 116 ―
Sharp Sustainability Report 2014
SRI (Socially Responsible Investment)*
As of June 2014, the following SRI ratings agencies had given Sharp a favorable CSR rating or included Sharp in
their SRI indices.
FTSE4Good Global Index (UK)
MSCI World ESG Index, MSCI Global Climate Index (US)
Morningstar Socially Responsible Investment Index (Japan)
* Investment in companies that fulfill not only their financial obligations but their environmental and social responsibilities as well.
― 117 ―
Sharp Sustainability Report 2014
[ For Employees ]
Creating a Vibrant, Productive Workplace Where Employees Feel Their
Jobs Are Worthwhile
Sharp is committed to developing its human resources and creating a workplace where employees are motivated,
work together enthusiastically and proactively, and maximize their potential without fearing failure. In addition,
Sharp supports a work-home balance and strives to create an ideal workplace where employees can work safely in
good health, both physically and mentally.
Message from a Manager
Developing Human Resources and Creating a Workplace That Truly Rewards the Motivation and
Hard Work of Employees
The following passage is included in the business philosophy of Sharp: "It is the intention
of our corporation to grow hand-in-hand with our employees, encouraging and aiding
them to reach their full potential and improve their standard of living." Having defined this
as its basic HR principle, Sharp has implemented various measures.
Enhancing employees' capabilities, increasing their job satisfaction, and boosting their
motivation through HR policies will not only make employees happy, but will also result
in improved product manufacturing. Sharp recognizes that these efforts will eventually
lead to the recovery and growth of the company by bringing new value and joy to people
around the world.
Specifically, Sharp positioned fiscal 2013 as the first year for the Restructuring Stage of
its Medium-Term Management Plan. In addition to reviewing initiatives carried out in the
past, Sharp conducted a fundamental overhaul of its measures, including those for HR
management, for the first time in over a decade.
Along with revising functions and rules that no longer meet the needs of the times, Sharp is promoting movements
to change the company and measures to invigorate internal communication—all with an eye to creating a company
and corporate climate that continue to make Sharp the kind of company that society needs.
Sharp will continue to stringently carry out reform through fiscal 2014, the Re-Growth Stage. The company will
execute further efforts to develop its human resources and create a workplace that can truly reward the hard work
and motivation of its employees. Of all the management resources, human resources are the biggest driving force
for revitalizing a company.
By maximizing the potential of its employees, Sharp aims to improve their capabilities and standard of living and to
realize recovery and growth for the company.
― 118 ―
Sharp Sustainability Report 2014
[ For Employees ]
Creating a Vibrant, Productive Workplace Where Employees Feel Their
Jobs Are Worthwhile
Fostering a Vibrant Corporate Culture
Deploying Company-Wide Corporate Culture Reform to Create a Workplace Where Employees Are
Motivated and Work Enthusiastically
Sharp positioned fiscal 2013 as the Restructuring Stage of its Medium-Term Management Plan and conducted a
fundamental overhaul of its measures, including those for HR management.
In addition to revising functions and rules that no longer meet the needs of the times, Sharp is promoting
movements to change the company and measures to invigorate internal communication, with an eye to reforming
its corporate climate.
― 119 ―
Sharp Sustainability Report 2014
Revision of Functions and Rules
Formulation of Sharp's Declaration for Action Reform
Sharp has formulated an action-reform declaration
stipulating specific actions for everyone at Sharp to take
in order to become more familiar with Sharp's business
philosophy and business creed and to link those
principles to their work.
As one measure for driving widespread change, Sharp
has distributed an action-reform declaration card to every
executive and employee, asking each of them to write a
declaration on their card and then carry it with them at all
times. Top executives have shared their declarations on
Sharp's internal website. Other awareness-raising
activities are continuously conducted, including
introducing the declarations of individual employees and
Declaration by the president:
Shift from just changing the corporate culture to
creating a good corporate culture
sharing episodes related to those declarations during
workplace gatherings.
By aligning the vectors of all employees and putting the declaration for action reform into practice, Sharp
aims to create a corporate culture it can be proud of.
Full text of Sharp's Declaration for Action Reform
― 120 ―
Sharp Sustainability Report 2014
Management Reform Initiative
As part of the management reform initiative, a "360-degree advice
system" was introduced in FY2013. It helps managers reinforce
awareness of their management behavior by providing feedback
from their bosses, colleagues, and subordinates, in addition to
their self-evaluation.
The feedback was followed by the training session, in which
managers discussed their results with each other. More than 60
sessions have been held since March 2014 domestically, covering
some 3,600 managers. It is critically important to maintain good
management practice, to nurture proper workplace culture. So
successive training sessions will be planned regularly to enhance
A scene from the management reform training session
at the Tenri production site
managers' skill.
Improving the Evaluation System
To create a culture in which every employee undertakes challenges in constant pursuit of new values without fear of
failure, even when tackling difficult goals, Sharp introduced a point-addition evaluation system for managers in April
2014. Going forward, this system will also be introduced to general employees to change the mindset and actions
of all employees and to make such changes the driving force for Sharp's re-growth.
Activities to Cultivate Sharp's Corporate Culture
Company-Wide Movement for Change
In May 2013, Sharp started a movement to transform the company.
Activities being promoted include: a campaign in Japan encouraging the use of the Japanese honorific suffix "san"
when addressing employees in order to bring people in different positions and generations closer and create an
atmosphere in which frank and unrestricted communication can take place; a movement to revitalize work by
improving workflow for enhanced efficiency; applying five principles for improving meetings; and following 10
articles for improving email manners.
Although initiatives such as these used to come from the head office, now many divisions, departments, and
affiliated companies are voluntarily establishing goals for change and are promoting their own unique measures.
Sharp carries out other awareness-raising activities to boost the momentum of its movement for change. For
example, the company maintains a bulletin on its internal website, where handwritten messages of encouragement
from the president are posted together with other information, such as model initiatives from the frontlines. And
Sharp has created a frog-like character named Kaerun♪ to both represent the movement and encourage
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Sharp Sustainability Report 2014
In May 2013, Sharp began making monthly, company-wide broadcasts as another way to clearly communicate the
contents of its movement for change. Featuring new contents each time, the broadcasts are made by employees
and executives working to enhance awareness and participation.
Employees record broadcasts
Measures to Invigorate Internal Communication
Sharp is conducting measures to invigorate in-house communication among all employees regardless of their age,
qualifications, work duties, and organization. These activities include the sharing of management information, site
visits by the president, introduction of an internal SNS, proactive use of the company intranet, and events to
promote exchanges.
By creating an environment in which everyone can speak frankly and without restriction, Sharp encourages
employees to voluntarily and proactively strive to reach goals, to actively work with others, and to take on new
challenges—thus transforming the mindset of each employee.
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Sharp Sustainability Report 2014
[ For Employees ]
Creating a Vibrant, Productive Workplace Where Employees Feel Their
Jobs Are Worthwhile
Company-Wide Small-Group Activities
R-CATS Small-Group Activities with a CSR Perspective
To deliver satisfaction and peace of mind to stakeholders, all Sharp employees in Japan and overseas belong to
small groups called R-CATS*. Through group activities, these teams confront the challenges of improving the
quality of their work, and they build new systems and methods for carrying out job-related tasks from the
perspective of stakeholders. Sharp views R-CATS activities as an important way to foster employees with excellent
problem-solving capabilities, as well as the ability to adapt to change.
In fiscal 2013, approximately 29,000 employees worldwide participated in R-CATS activities and carried out
activities to solve job-related problems and achieve goals. In fiscal 2014, R-CATS activities will be revitalized as an
effective system for bringing about change that can lead to the recovery and growth of Sharp.
* R-CATS: Revolution-Creative Action Teams
Achievements are presented by selected teams from
Japan and overseas during the All-Sharp R-CATS
Convention, and case studies on successful
improvements are shared throughout the company.
To create an environment in which excellent examples
can be studied at any time, the case studies are posted
on Sharp's intranet.
Commemorative photo of presentation teams
(Sales and Service Block) and managers
An R-CATS catch copy competition has been held as an awareness-raising event for employees. The most popular
catch copy, selected through employee voting, has been used in convention documents and posters, on Sharp's
intranet, and in other media to give broad exposure to R-CATS activities.
― 123 ―
Sharp Sustainability Report 2014
[ For Employees ]
Creating a Vibrant and Productive Workplace Where Employees Feel Their
Jobs Are Worthwhile
Respect for Human Rights
Human Rights Concept
The Sharp Group Charter of Corporate Behavior and the Sharp Code of Conduct stipulate the guiding principles on
human rights for all executives and employees. As a global company, Sharp respects the diverse cultures and
values of different countries and the characteristics of each individual.
Guiding Principles
The Sharp Group Charter of Corporate Behavior (excerpt)
The Sharp Group respects fundamental human rights and does not engage in discriminatory actions or
human rights violations in any of its business activities. The Sharp Group does not sanction child labor or
forced labor.
The Sharp Code of Conduct (excerpt)
1) We respect the fundamental human rights and the dignity of individuals in all business activities and will not engage in
abusive behavior, expression of contempt, verbal abuse, harassment that takes advantage of one's company rank, or
defamatory acts.
2) We neither take part in nor sanction child labor or forced labor.
3) We do not take any action that constitutes discrimination based on nationality, race, ethnic group, color, sex, age,
religion, creed, social status, birth, property, bodily feature, physical or mental disability, political opinion, and the like.
4) We do not engage in acts that constitute sexual harassment, such as non-consensual sexual remarks or behavior
toward another person, in our offices and other work places.
Efforts Related to Human Rights
Activities Related to Respect for Basic Human Rights and Personal Dignity
Sharp participates in the United Nations Global Compact as part of its worldwide efforts to abide by international
standards for human rights and labor.
In Japan, Sharp continuously carries out human rights education activities, one example being human rights
training conducted annually at each site. (A total of approximately 30 sessions were held in fiscal 2013). Sharp also
gives newly appointed heads of overseas bases booklets covering such topics as respect for human rights.
Overseas, Sharp promotes human rights protection at each site in line with local laws.
Good Labor-Management Relationship through Dialogue
Sharp respects employees' right to organize and the right of collective bargaining based on the laws in each
country and region and works to strengthen trusting relationships with labor unions.
In Japan, Sharp holds monthly meetings of labor-management heads: these include the Central LaborManagement Council, which involves top executives from both sides, and local labor-management meetings at
each site and affiliate, where opinions are exchanged on business conditions and on labor-management issues
pertaining to the work environment.
In Europe, Sharp holds European Works Council meetings every year to review managerial issues throughout
Europe. In China, companies are obligated to hold meetings with employee representative assemblies to decide on
issues like employee working conditions. In line with this law, Sharp strives to build a cooperative labormanagement relationship as an even better partner.
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Sharp Sustainability Report 2014
[ For Employees ]
Creating a Vibrant, Productive Workplace Where Employees Feel Their
Jobs Are Worthwhile
Human Resource Development
Personnel, Education, and Training Systems That Respect Employee Initiative and Diversity
Based on the belief that human resources are the most important asset for a corporation, Sharp has implemented a
variety of personnel, education, and training systems that respect initiative and diversity and that are designed to
develop the character, motivation, and creativity of each employee. While Sharp strives to expand its business in
rapidly emerging markets, it is focusing efforts on developing personnel that can play an active role in the global
Next-Generation Human Resource Development Systems
Next-Generation Executive Management Personnel and Expert Training; Job-Level-Specific Personnel
The Sharp Leadership Program targets younger employees in semi-managerial or supervisory positions, with the
objective of systematically nurturing executive management personnel. The Challenge Course, for younger
employees in semi-managerial positions, is intended to enable early promotion of younger personnel.
In addition to Global Manufacturing Leader Training, which aims to develop manufacturing personnel throughout
the globe, Sharp provides Expert Training to develop technical and sales experts and Job-Level-Specific Personnel
Training to give systematic training in the knowledge, skills, and management techniques required at each stage
after joining the company.
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Sharp Sustainability Report 2014
Global Human Resource Development
Fostering Global Personnel Based on the 4Gs
As management becomes more globalized, it becomes increasingly necessary to foster personnel that can actively
communicate with people of different cultures and values as well as make use of those differences. In an effort to
develop personnel that can work actively in the global field while making the most of diversity, Sharp has
established a human resource and education system based on the 4Gs (Global formation)—GATE, G-BANK,
Name of System
Details of Activities
Enables employees scheduled for immediate overseas assignment to systematically
acquire the knowledge and practical communication skills required to carry out duties
smoothly overseas.
The total number of employees involved since fiscal 2008 is approximately 800.
Enables employees scheduled for overseas assignments within three years to acquire the
basic knowledge and language proficiency required for working in a global setting; also
fosters personnel for future overseas assignments.
The total number of employees involved since fiscal 2008 is approximately 650.
Designed for young employees who will be involved in developing Sharp's future overseas
business, this program fosters personnel that can be strategically dispatched to newly
emerging economies and work actively in those countries and regions.
Approximately 50 participants have been dispatched since the program started in
fiscal 2011.
A program open to all employees to help them improve their foreign-language competency,
a basic skill required for pursuing global business.
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Sharp Sustainability Report 2014
Sharp-Wide Convention to Present Training Achievements of Third-Year
Young Employees Propose New Products, New Businesses, and Corporate Climate Reform
At the Human Resources Development Unit Center in Tenri City, Nara Prefecture, a company-wide
convention was held at which third-year Sharp employees presented proposals based on their training
achievements. The judging panel comprised the President, the Division General Manager of the Corporate
Research and Development Division, the Chief Officer of the Human Resources Development Unit, and
the Chief Communication Officer. Taking part were ten teams made up of 66 employees selected from
divisions and affiliated companies. The teams presented proposals for new genres of products, new
businesses, and corporate climate reform, based on the theme of Sharp's recovery. Many participants
commented that conducting joint proposals and competing with their fellow cohort of employees was a
valuable and motivating experience.
Teams awarded the grand prize and award of excellence
Global Sales Training in China and the ASEAN Region
In order to increase commercial sales in China and the ASEAN region, Sharp held so-called G-S3 (GS
Cubic*) training focused on B-to-B sales. In November 2013, 27 employees received training in Thailand,
and in April 2014, a further 113 employees underwent training in China.
*1 G-S3 stands for Global Sales, Strategy, and Solutions
Employees who underwent training
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Sharp Sustainability Report 2014
Talent Development and Motivation-Boosting Programs
Open Recruitment System
Once every financial quarter, Sharp implements the Open Recruitment System in Japan, which entails inviting
employees throughout the company to apply for newly available positions in critically important areas. Positions
relate to areas such as expanding business in newly emerging economies, pioneering new business, and
developing new technologies and products. In fiscal 2013, jobs were offered in approximately 60 topic areas, and
about 100 employees were assigned a new position.
Personnel Declaration/Career Development System, Career Development Rotation
Once a year, under Sharp's Personnel Declaration/Career Development System, all employees in Japan submit a
career development plan along with a self-assessment of their job aptitude. Sharp then uses the information to
develop skills and organize job rotations. Sharp also implements a Career Development Rotation to give mainly
young employees in Japan the opportunity to experience multiple types of jobs. The aim is to systematically foster
personnel who balance a high degree of expertise and a wide intellectual horizon.
Step-Up Campaign (Qualification Acquisition Encouragement Plan)
To support employee self-development, Sharp offers monetary rewards to employees who have acquired
qualifications, with the amount depending on the difficulty of acquiring the qualification. This plan covers 249
qualifications, including some for field-specific techniques and skills, some directly related to daily duties, and some
for language skills—essential in the development of globally minded employees.
Award System
Sharp annually honors domestic and overseas employees and divisions/departments that have achieved
outstanding performance. In fiscal 2013, approximately 100 awards were presented to about 3,200 employees
(excluding unique awards by divisions and affiliated companies).
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Sharp Sustainability Report 2014
[ For Employees ]
Creating a Vibrant, Productive Workplace Where Employees Feel Their
Jobs Are Worthwhile
Sharp's approach to diversity is based on its business philosophy, which states, "It is the intention of our corporation
to grow hand-in-hand with our employees, encouraging and aiding them to reach their full potential and improve
their standard of living." By respecting each other's differences, Sharp aims to generate new value, develop
products that can create future new lifestyles for customers, and propose new services.
Developing Company-Wide Diversity Management
Efforts Towards Diversity
In 2004, Sharp established a Corporate Equal Partnership Project Team. From the very start, Sharp saw this
special department as a business strategy for maximizing the abilities of each employee, not simply as a way to
give preferential treatment to women and minorities. In 2009, the team was expanded to become the Diversity
Development Group, responsible for promoting total diversity management,*1 including training and utilization of
non-Japanese employees working in Japan, recruitment of people with disabilities, and re-employment of the
elderly (retirees).
Concepts Underlying the Diversity Program
1) Diversity management is a human resources strategy for utilizing a
diverse range of employees; it is also a business strategy.
2) Diversity is part of Sharp's business philosophy.
3) Based on the unique individual attributes of women, non-Japanese
employees in Japan, the physically or mentally challenged, and
retirees, formulate and promote programs aimed at promoting their
active participation.
4) Consistently promote diversity.
5) As a foundation for promoting diversity, strive to ensure that systems
supporting the balance between work and family are established
and become widespread.
6) Work to build a corporate environment that accepts diversity.
*1 Diversity management (strategy for utilizing diverse employees) accepts the ideas and values of employees with diverse backgrounds
(with regard to gender, age, or nationality) without being influenced by previous corporate or social standards. It is a strategy for
promoting company growth and the personal satisfaction of employees by responding rapidly and flexibly to changes in the business
environment. (Taken from the report by the Diversity Work Rule Study Group of the Japan Federation of Employers' Associations.)
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Sharp Sustainability Report 2014
Promoting Activities of Female Employees
Since fiscal 2005, based on its Corporate Affirmative Action for Women Strategy Program, Sharp has been
promoting such measures as a female leader candidate-development program and has been stepping up its
training of female managers. Sharp's first-ever female executive officer was appointed in fiscal 2011, and its first
female director and non-Japanese female manager were appointed in fiscal 2013. Going forward, Sharp will
continue to actively promote the increase of female managers in line with its goal of raising the percentage of its
female managers to 5%*2 by fiscal 2018.
*2 Percentage of Sharp Corporation female managers, including employees temporarily transferred to affiliated companies within Japan
and overseas as of April 1, 2014: 2.2%
※3 Sharp Corporation only
※4 Corporate Affirmative Action for Women Strategy Program started in 2005
Sharp Corporation Personnel Composition
Directors, auditors
Executive officers
General staff
(fiscal 2014 new employees)
Ratio (%)
(As of April 1, 2014)
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Sharp Sustainability Report 2014
Personnel by Gender at Major Overseas Subsidiaries
SEMEX (Mexico)
SEG (Germany)
SMPL (Poland)
SEID (Indonesia)
SATL (Thailand)
SMM (Malaysia)
SESC (China)
SOCC (China)
NSEC (China)
WSEC (China)
(As of the end of March, 2014)
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Sharp Sustainability Report 2014
Activities Outside the Company
Women's Networking Forum
This annual forum was launched in fiscal 2004 for women working in various industries in the Kansai region of
Japan. Approximately 700 participants from 60 companies and organizations usually take part. Sharp participates
as one of the companies in charge, and our female employees attend as role models and participants as well.
Diversity Western Japan Study Group
Since 2004, Sharp has participated in a study group for staff members in charge of diversity promotion at
companies in the Kansai region of Japan. Approximately 60 participants from 30 companies and organizations are
involved. We take part in activities such as sharing research-topic information among companies, providing internal
feedback, and working with external organizations.
Efforts to Attract University Students
Sharp invited female students from the "IRIS" team of Osaka Prefecture University 's Graduate School of Science
to learn about Sharp's history and original technologies. They also learned about Sharp's diversity initiatives and
held a round-table conference with female employees who are graduates of their university—where they especially
support female researchers and their performances.
Photo of the "IRIS" team members from the Osaka Prefecture University Graduate School of Science on
their visit to Sharp
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Sharp Sustainability Report 2014
Promoting Childcare Leave for Male Employees
To create a more employee-friendly workplace, Sharp has made efforts to establish a support system and
environment in which both male and female employees can participate in child rearing. In light of Japan's low birth
rate, diversifying work and life styles, and increase in double-income households, Sharp has revised its childcare
leave system to promote child rearing by male employees. As a result, for the past few years, approximately 200
male employees have taken childcare leave to take part in child rearing each year. Sharp will continue to support its
employees' active participation in childcare and in family life with their children.
Words from a Male Manager who Experienced Childcare Leave
I have been in charge of business projects in collaboration
with foreign companies since May 2012.
My eldest son was born at the end of December 2013. It
was a late birth requiring a cesarean section. Since my
wife and I did not have any relatives in the Kansai area to
provide support, I decided to take childcare leave.
My mother-in-law, who lives in Tokyo, came to Osaka for
10 days after my wife had been discharged from the
hospital, so I took childcare leave for 10 days after my
mother-in-law returned home.
My first experience with child rearing was much more
difficult than I had expected. During my leave, I had to
feed my baby son and change his diapers every three
hours. It was a physically challenging situation for my wife
and me, and I didn't have any time to worry about my job
or workplace during childcare leave.
Since there were no relatives nearby to ask for help, I had
no choice but to take childcare leave, but I say it was a
good experience for me. And my wife was very grateful
that I had been able to support her at home.
My boss and colleagues were very cooperative, and our team worked together closely to follow-up during
my absence. That's why I was able to return to work with no problems.
I had expected that becoming a parent would be tough. However, the joy and sense of fulfillment that I
have received from my baby son outweigh the hardships.
I cherish my family and am grateful for the support they give me; it energizes me to focus on my work.
Since childcare leave allows us to give back and support our families when they need help, I suggest we
take full advantage of this system.
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Sharp Sustainability Report 2014
Expanding Opportunities for Non-Japanese Employees in Japan
With the globalization of business, Sharp is working globally to secure and systematically train human resources
who can meet the needs of each workplace. In recent years, Sharp has promoted greater employment of
international students and people of other nationalities residing in Japan. As of April 2014, there are approximately
100 non-Japanese employees from 20 countries working in various departments.
Promoting Employment of the Physically or Mentally Challenged
Ever since Sharp founder Tokuji Hayakawa established the "accumulation of community service" as one of "Five
Accumulations of Competency" in Sharp's business principle, Sharp has been actively involved in social service
and welfare. The entire Sharp Group makes efforts to promote the employment of the physically or mentally
challenged and to create a better work environment for these employees.
Specifically, Sharp launched a website addressing the employment of physically or mentally challenged people; the
website contains information on initiatives to hire such individuals into the Sharp Group. Sharp is also striving to
make the company an easier place to work through the use of support measures such as PC note-taking, a method
for conveying audio information by entering it into the keyboard of a PC, during training sessions attended by
hearing-impaired participants.
What's more, in order to facilitate efforts on the operations side, grasp the current level of support, and solicit
requests to the company, Sharp has conducted questionnaires directed at its employees with physical or mental
In fiscal 2013, Sharp Group (including affiliated companies) met its goal for the percentage of physically or mentally
challenged employees by maintaining the 2.2% level. As of May 2014, that percentage was 2.3%, exceeding the
2.0% rate mandated by law (as stated in the Act for Employment Promotion etc., of Persons with Disabilities).
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Sharp Sustainability Report 2014
Efforts of Sharp Tokusen Industry Co.
The precursor of Sharp Tokusen Industry Co. was the Hayakawa
Branch Factory, a pressing factory that employed blind WWII
veterans. That factory sprang from the determination of Sharp
founder Tokuji Hayakawa to repay persons with disabilities for
opening up his life path. In 1977, Sharp Tokusen Industry was the
first company in Japan to be certified as a special subsidiary for
employing the physically or mentally challenged. Later, it changed its
operations to fit the development of Sharp Corporation's electronics
Sharp Tokusen Industry's current office
business and contributed to the expansion of business as a member
of the Sharp Group.
Going forward, Sharp will further promote social contribution through its activities for the employment of the
physically or mentally challenged and through its educational support activities.
Voice: Words from a Disabled Employee Working at Sharp Tokusen Industry
Nineteen years have passed since I joined the company. I first
worked in the Production Department, and in my 40s, after my
children had grown up, I enrolled in a computer school. There,
I obtained qualifications for PCs and quality management.
I am currently in charge of storing documents as electronic
data, providing career education classes as a dispatched
lecturer, and editing in-house magazines. In addition, I give
voluntary lessons on sign language once a week for my
In this way, I am engaged in a wide range of duties that I never
imagined possible when I was a student and this has really
allowed me to grow. I feel that the dispatched classes on
career education are especially rewarding, since I have the opportunity to convey my thoughts to
hearing-impaired students based on my past experiences.
I am especially careful when communicating with others, since this is one of the weak areas for the
hearing-impaired. I always keep the following four points in mind: 1. Ask questions when I don't
understand, 2. Consult others, 3. Keep the listeners in mind when talking to them, 4. Respect the
other person's ideas. Furthermore, to avoid misunderstandings when communicating with a person
without disabilities, I try to use handwritten messages. I would like to tackle new challenges and
duties, keeping my smile, utilizing my reading and writing skills that I fostered by reading for an hour
every day, writing diaries, and reading newspapers when I was a student.
Reemployment of Retirees
In response to the fact that public pension in Japan is not paid until a retiree is 65 years of age, Sharp basically
reemploys interested employees who have reached the mandatory retirement age of 60 until they are 65. This is
not only in response to a legal requirement but also stems from the company's stance on promoting the utilization
of senior employees who have a strong work ethic. It also takes into consideration employees who wish to give
back to society via their skills and knowledge accumulated over many years.
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Sharp Sustainability Report 2014
[ For Employees ]
Creating a Vibrant, Productive Workplace Where Employees Feel Their
Jobs Are Worthwhile
Activities to Support Work-Life Balance
Promoting Work-Life Balance
In line with its promotion of diversity, Sharp supports its employees
by creating a rewarding, safe, and healthy workplace. Sharp gives
employees a choice of work styles—allowing them to select the
style that best suits them at various stages in their lives—thereby
helping them achieve a work-life balance that will enable them to
lead rich lives both at work and at home.
Specifically, Sharp is expanding support programs focusing on
childcare and nursing care and distributing guidebooks and
providing other information to promote use of the programs. In
addition, to help employees realize an efficient working style that
offers satisfaction both at the company and at home, Sharp labor
Nursing Care Guidebook and Work-Life Balance
and management continuously work together to change the way
people work, through initiatives like No Overtime Day and by
encouraging employees to plan for and take their annual paid
vacation days.
In fiscal 2013, a movement to revitalize work by improving
workflow for enhanced efficiency was conducted as a measure for
corporate culture reform. Under this movement, every employee
disclosed their goals and followed a do-and-check cycle to
eradicate unnecessary work.
The Next-Generation Certification mark (nicknamed
Kurumin) shows that the company is certified by the
Ministry of Health, Labour and Welfare
These efforts have earned high appraisal from outside the company, with Sharp receiving certification from the
Japanese Ministry of Health, Labour and Welfare based on the Act on Advancement of Measures to Support
Raising Next-Generation Children.
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Sharp Sustainability Report 2014
Work-Life Balance Support Programs (Main Programs and Participation at Sharp Corporation)
Program Name
(year and no. of persons)
Fiscal 2011
Fiscal 2012
Fiscal 2013
Allows a leave of any length until the last day of
March following the child's first birthday or until the
child is 18 months old.
(In 2011–2012, 98.0% of those who took childcare
leave returned to work.)
Childcare Leave*
Childcare assistance grants:
1) The 10-day period beginning at the start of the
(Men: 273)
(Men: 205)
(Men: 161)
childcare leave period is treated as a period with pay.
2) An allowance of 60,000 yen a month is provided
during the leave period (excluding the 10-day period
when salary is paid).
A system by which an employee can reduce work
time for a maximum of three hours per day in units
Employment During
Childbearing/ Childcare
of 30 minutes during pregnancy. Also allows a
female/male employee the same reduced-hours
employment system until the last day of March after
her/his child has reached the sixth year of
elementary school.
Allows flexible work schedules (work day start and
Childcare Support Work
end times) until the last day of March after the child
has reached the sixth year of elementary school.
Allows an employee to shorten working hours up to
an average of three hours per day in one-hour units.
Nursing Care Leave*
Allows an employee to take leave to care for a
family member requiring nursing care for a total of
two years (can be divided up).
Nursing Care Support
Work Program
Allows flexible work schedules (work day start and
end times) for nursing care, as needed. Employee
can shorten working hours in one-hour units up to
an average of three hours per day.
* Personnel evaluations conducted while an employee is on childcare leave or nursing care leave will never work against the employee in
terms of receiving a raise or promotion.
Reduced-Hours Employment for Career Development Support, Volunteer Leave, Multipurpose
Leave, Multipurpose Leave Taken in One-Hour Units (or half-day units), Staggered Commuting
Hours during Pregnancy, Guaranteed Reemployment after Childbearing/Childcare, Paternity
Leave, Daycare Adaptation Leave, Reemployment after Nursing Care, Reduced-Hours
Other Programs
Employment for Nursing Care, Reduced Weekly Working Days for Nursing Care, Subsidies for
Families of Single Employees Conducting Nursing Care, Travel Expense Subsidies for Single
Employees Returning Home for Nursing Care, Nursing Care Leave, Home Helper Expense
Subsidies, Leave of Absence/Increasing Half-Day Use of Annual Paid Holidays for Fertility
Treatment, Fertility Treatment Financing System.
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Sharp Sustainability Report 2014
[ For Employees ]
Creating a Vibrant, Productive Workplace Where Employees Feel Their
Jobs Are Worthwhile
Promoting Occupational Safety and Health
Basic Policies on Safety and Health
― 138 ―
Sharp Sustainability Report 2014
Organization Promoting Safety and Health
Although the Sharp health insurance association was primarily responsible for maintaining and promoting the
health of its employees and their families, from April 2014 Sharp decided to fully implement health measures in
addition to its framework on safety and health activities. In order to show Sharp's resolve, the Central Safety and
Health Committee was renamed the Central Safety, Hygiene, and Health Committee. Sharp Group's Safety and
Health Management organization structure is shown in the chart below.
Aiming for a Secure, Safe, and Healthy Workplace
In order to ensure that activities for the maintenance and improvement of safety, hygiene, and health go smoothly at
each business location, Sharp holds Central Safety, Hygiene, and Health Committee Meetings that bring the
company and the labor union together to decide basic measures for safety, hygiene, and health from a
company-wide perspective. The Committee formulates annual company-wide policies and basic measures, and
promotes the implementation of these measures at business locations. It has also organized a team consisting of
Central Safety, Hygiene and Health Committee members to conduct safety and health inspections at each site.
Moreover, a Safety, Hygiene, and Health Committee consisting of labor and management representatives at each
business location holds a monthly meeting to report and discuss safety, hygiene, and health activities and decide
on improvement measures. A Safety and Hygiene Council at each business location holds meetings in which
subcontractors who are permanently stationed within Sharp sites also take part. Participants discuss liaison and
coordination among related operations and share information in an attempt to improve the safety and hygiene
management system for the entire business location.
The result of these continuing measures is that the Sharp Group's*1 industrial accident rate (frequency rate of
lost-worktime industrial accidents*2) in Japan in 2013 was 0.19. This rate is consistently below the national average
for the manufacturing industry.
*1 Sharp Group in Japan: Sharp Corporation, SEMC, SEO, SESJ, SBS, SEK, SMS, STC, iDeep Solutions (SDP, SFC, OSS, and SOR are
not included in 2012)
*2 Indicator that represents the incidence of industrial accidents per million work hours (one day or more of suspended operations)
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Sharp Sustainability Report 2014
*3 Averages for all industries and the manufacturing industry are based on a survey by the Japanese
Ministry of Health, Labour and Welfare.
Promoting the Introduction of the Occupational Safety and Health Management System
Sharp is promoting the introduction of an occupational safety and health management system in an effort to further
address the potential risk of accidents in the workplace and to firmly set in motion proactive safety activities that
prevent or reduce risks. As of the end of fiscal 2013, 10 of Sharp Corporation's domestic production sites had
acquired OHSAS 18001 certification*4.
In order to implement preventative safety measures, Sharp's non-production sites and affiliates are conducting their
own original occupational safety and health management efforts, which include surveying workplace risks and using
the findings to improve occupational safety and health.
As part of its efforts to raise the standard of its occupational safety and health management, Sharp is working to
have its overseas manufacturing bases in each country*5 acquire OHSAS 18001 or other certification for
occupational safety and health management systems.
*4 One of the occupational safety and health management system certification standards; it is the most widely used standard around the
world today.
*5 For example, Sharp Appliances (Thailand) Ltd. (SATL) acquired TIS 18001 Thai occupational safety and health certification in August
OHSAS 18001-Certified Sites, Affiliated Companies and Overseas Bases
Tochigi, Kameyama, Mie, Yao, Sakai, Nara, Katsuragi, Mihara, Fukuyama, Hiroshima, Sharp Mie
SMPL (Poland), SSI (Indonesia), WSEC (China), SUKM (UK)
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Sharp Sustainability Report 2014
Enhancing Mental Health Care and Expanding the Support System for Employees Taking or
Returning from Medical Leave
In order to help employees prevent mental illnesses or deal with them at an early stage and to support employees
on medical leave in making a smooth return to work, Sharp in Japan has a counseling system in which medical
specialists or industrial counselors are stationed at main offices and plants. The company also conducts various
training and educational activities to deepen employees' knowledge of mental health care and to have them acquire
methods for dealing with mental health.
Also, as part of periodic health checkups, Sharp carries out mental stress checkups on all employees by
self-diagnosis (98.3% participation rate in fiscal 2013). For employees who are diagnosed with high stress levels,
Sharp gives one-on-one counseling through industrial physicians or counselors.
By enhancing mental health measures for primary, secondary, and tertiary prevention of mental illness, we will
boost the execution of systems and strengthen measures to deal with the causes of mental problems and
illnesses—such as long work hours and power harassment—and in doing so create a workplace where employees
enjoy rewarding jobs and where there are fewer cases of mental problems and illnesses.
Programs for Mental Health Care
<Primary prevention>
Sharing knowledge and awareness through job-level-specific mental health group work training
Distributing a Workplace Mental Health Handbook to all employees
Holding certification tests for mental health management at the company
<Secondary prevention>
Providing mental stress checkups simultaneously with regular physical checkups for all employees
Providing face-to-face counseling at main sites by company counselors or medical specialists
Giving advice by e-mail, phone, or in-person counseling through specialized outside organizations
Counseling for those employees who have experienced major changes in their environment, such as transfer,
transfer not accompanied by family, and job promotion
<Tertiary prevention>
A support system that provides ongoing communication with employees on medical leave from work
A support program to help employees who were on medical leave make a smooth return to work, in
cooperation with an industrial physician, one's assigned department, and the General Affairs Department
Providing a trial period for employees who were on medical leave to support their return-to-work training
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Sharp Sustainability Report 2014
Activities to Promote and Maintain the Health of Employees and Their Families
Sharp has in place a number of measures aimed at supporting the health of employees and their families. These
measures include guidance for people whose health checkups show they need help, health consultations by public
health nurses who travel to Sharp sites around Japan, lifestyle improvement campaigns using self-assessment
sheets, information provision and workplace education sessions that utilize Sharp's health mascot, the banning of
smoking and cigarette sales during the company's no-smoking campaign, and events promoting exercise habits. To
promote specific health guidance*6, in fiscal 2014 Sharp outsourced a health-guidance company to begin providing
individually tailored guidance to employees at Sharp sales companies in Japan, as well as to their family members.
*6 Following employee health checkups, those with problems such as obesity and blood pressure issues are selected to receive specific
health advice from professionals.
Sharp's New Health Initiative: "Healthy Sharp 23"
Sharp's Business Philosophy says that it will "…contribute to the culture, benefits and welfare of people throughout
the world." To this end, Sharp and the Sharp health insurance association and the Sharp labor union teamed up in
fiscal 2014 to begin comprehensive support for the health of Sharp employees and their family members. Sharp
has named its initiative "Healthy Sharp 23." This program incorporates numerous activities aimed at achieving
certain health targets by the end of March 2023. It is inspired by Healthy Japan 21 (second stage)*7, a health
promotion campaign by Japan's Ministry of Health, Labor, and Welfare. The first aim of "Healthy Sharp 23" is to
raise awareness among employees and their family members of the importance of health. The program will grow to
include an increasing number of activities.
*7 Stipulates the basic direction and goals for the promotion of health based on the Health Promotion Act.
(July 10, 2011 Ministry of Health, Labor, and Welfare Notification No. 430)
"Healthy Sharp 23" Goals
Items and Targeted Values by the End of March 2023
(1) Reduce the percentage of employees who have a BMI of 25 or higher to 20% or less (fiscal 2013: 25.6%).
Reduce the percentage of obesity to one in five people, from the present one in four people, for the prevention of
lifestyle-related diseases, etc.
(2) Lower the smoking rate to 12% or less (fiscal 2013: 26.8%) of employees.
For the prevention of cancer, cardiovascular disease, diabetes, etc. and also to reduce passive smoking, the smoking
rate will be reduced to the same level as in Healthy Japan 21 (second stage).
(3) Regular exercising for 35.6% or more (fiscal 2013: 23.1%) of employees.
Regular exercise will be promoted for the prevention of lifestyle-related diseases and to prolong life expectancy.
(4) Reduce the total amount of sick leave associated with mental health disorders and illnesses by 25%
compared to fiscal 2013.
Since mental illnesses are a major setback for both the company and employees, and as they often involve long
recovery times, such disorders will be reduced by creating a workplace where employees can work enthusiastically. (In
cases where employees take sick leave, the entire workplace will provide support by permitting ample time for
recovery and by supporting a smooth return to work.)
(5) Eliminating constant excessive work hours.
Long and consistent overtime work will be prohibited for both employees and managers to increase the number of
employees who have a favorable work-life balance and who can work enthusiastically.
Company-wide "Healthy Sharp 23" campaign mascot
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Sharp Sustainability Report 2014
[ For Local Communities ]
Social Contribution Activities for Harmony and Coexistence with Society
Working from a global perspective, Sharp undertakes social contribution activities that meet local needs, aiming to
harmonize and coexist with society and maintain the trust of society through these efforts.
Message from a Manager
Promoting Activities that Foster Employees' Social Awareness
I believe it is extremely important that Sharp continues its social contribution activities in
order to become a company that is needed by society. By seriously reviewing how to
resolve social issues and what approaches the company can take, Sharp can ensure
that it is contributing to the sustainable development of society through its activities.
To encourage every Sharp Group employee to be interested in everyday environmental
issues and enhance their own eco-consciousness, Sharp has created the Sharp Green
Club (SGC), a joint labor-management organization that plans and manages mainly
environment-related social activities.
SGC operation bases have been established at factories and major sales bases
throughout Japan. Activities include cleanup campaigns at each Sharp site, Sharp
Forest activities, and Ramsar Convention wetland protection activities. In fiscal 2013,
approximately 17,000 Sharp employees, accounting for 70% of domestic employees
(24,118 as of the end of March 2014), participated in approximately 800 campaigns and
Twelve years have passed since SGC was established. Sharp will continue promoting activities that foster social
awareness and provide employees with opportunities to contribute to society in some way.
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Sharp Sustainability Report 2014
[ For Local Communities ]
Social Contribution Activities for Harmony and Coexistence with Society
Promoting Social Contribution Activities
Priority Fields
Sharp recognizes the environment, education, and social welfare
as priority fields for its social contribution activities and
continuously creates structures and systems for these activities.
Structures and Systems
Sharp Corporation's Head Office has a unit that specializes in the planning and promotion of all domestic and
overseas social contribution activities. This unit plans social action measures and builds structures and systems for
implementing social contribution activities.
For its educational support programs in Japan, Sharp continues to develop human resources, including training
employees to serve as instructors in regions throughout Japan and registering those employees as in-housequalified personnel. Sharp also encourages employees to acquire a skill—like sign language—that would be useful
for them when conducting social contribution activities.
Sharp also provides the systems and the type of environment that make it easier for its employees in Japan to
participate in social contribution activities. Sharp gives its employees opportunities to volunteer and has a volunteer
leave system, whereby employees can take up to a one-year leave from work to engage in volunteer activities, and
a multipurpose leave system, whereby employees can receive eight days of extra paid leave per year to engage in
socially valuable activities.
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Sharp Sustainability Report 2014
[ For Local Communities ]
Social Contribution Activities for Harmony and Coexistence with Society
Environmental Activities
As a corporate citizen, Sharp undertakes activities to protect biodiversity, as well as other environmental
conservation activities, while it contributes to the global environment through its business activities. All of these
efforts are based on Sharp's Basic Environmental Philosophy for "Creating an Environmentally Conscious
Company with Sincerity and Creativity." In Japan, Sharp also carries out activities led by the joint labormanagement organization Sharp Green Club (SGC), which was established in 2003. These activities include Sharp
Forest activities, Ramsar Convention wetland protection activities, cleanup campaigns, and greening activities at all
production sites and sales and service bases. The planting and nurturing of trees, biodiversity protection
campaigns, and other environmental conservation activities are also conducted continuously at bases outside
Japan, in a manner rooted in local lifestyles and social climates.
Related information:
Protecting Biodiversity
Activities in Japan
To protect biodiversity and regenerate satoyama (areas that lie between the foot of a mountain and arable land),
Sharp is developing 12 Sharp Forests. In addition, the company is planning and/or carrying out conservation
activities in a total of 10 Ramsar Convention*1 wetlands.
In July 2013, these environmental protection activities, specifically the company's contributions to restoring healthy
water cycles, earned Sharp the Economy, Trade and Industry Minister's Prize; 15th Japan Water Prize (sponsored
by Japan Water Prize Committee, Honorary President: Prince Akishino).
Sharp's environmental conservation activities include a unique initiative, launched by the company in fiscal 2011
under the Sharp Forests banner, to enrich Sharp Forests so that owls can live there. The aim of the initiative is to
promote forests with even richer ecosystems.
In areas and communities near its production sites and offices throughout Japan, Sharp is actively promoting
cleanup campaigns, greening activities, and other environmental protection efforts.
In what has become a major initiative, Wakakusayama greening activities are protecting the biodiversity of
Wakakusayma (Nara Prefecture) and preserving the traditional culture of mountain burning. This joint effort
between Sharp sites in Nara and Osaka prefectures was started in 2003.
Sharp will continue to expand its community-based environmental activities and contribute to local communities.
*1 A convention to protect internationally important wetlands as a habitat for waterfowl and to protect the wildlife inhabiting those wetlands.
Related information:
CLOSE-UP <Economy, Trade and Industry Minister's Prize; 15th Japan Water Prize>
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Sharp Sustainability Report 2014
Enriching Sharp Forests So That Owls Can Live There
The initiative to enrich Sharp Forests so that owls can live there
began in fiscal 2011 with Sharp Forests in Kishiwada and
Shijonawate, both in Osaka Prefecture. In fiscal 2012, the
initiative was extended to one more Sharp Forest in Marugame in
Kagawa Prefecture, for a total of three locations.
In March 2014, confirmation of the first owl-nest building in both
Konoyama Sharp Forest (photo, left: Kishiwada City, Osaka
Prefecture) and I&I LAND Sharp Forest (Shijonawate City,Osaka
Prefecture) was made.
To enrich Sharp Forests so that owls—a symbol of rich
biodiversity—can build nests there every year, Sharp employees
and their family members will continue carrying out such
preservation activities as periodically thinning out trees and
installing nesting boxes.
Conservation Activities at Ramsar Convention Wetlands
In November 2013, Sharp employees and their family members
participated in a cleanup campaign in Yatsu Tidal Flat (photo, left:
Narashino City, Chiba Prefecture), one of Japan's famous
stopovers for migratory birds.
Because the tidal flat is located in the innermost part of Tokyo
Bay, garbage that has washed ashore tends to accumulate.
Cleanup activities are required on a regular basis to create an
environment that is suitable for birds to make it through the winter.
To preserve this tidal flat and ensure that many migratory birds
continue to stop by, Sharp employees take part in periodic
cleanup campaigns there.
Words from a Civil Servant
I would like to sincerely thank all the participants in the May 24,
2014 Wakakusayama greening activities organized by the Sharp
Green Club. Blessed with good weather, more than 300 people took
part in the planting of Japanese pampas grass in Wakakusayama.
Wakakusayama greening activities began in fiscal 2003 after Sharp
Corporation, which has three production sites in Nara Prefecture,
approached us about carrying out environmental and landscape
conservation activities. Under this initiative, Japanese pampas
grass is planted and invasive species, such as Chinese tallow tree
and fern, are removed. This year marked the 11th time such
greening activities have been conducted.
In 2007, Sharp received the 2007 Nara Prefecture Environmental
Merit Award. That award recognized Sharp as a private organization
that has made significant achievements in environmental
conservation activities in Nara Prefecture and that has contributed greatly to social activities in the region.
The local government of Nara Prefecture sincerely hopes that Sharp will continue its efforts to preserve
the environment. Doing so will help us maintain the beautiful attractions of Nara Park—including
Kasugayama Primeval Forest, a special national treasure, and Wakakusayama—which are recognized
under the UNESCO World Heritage designation "Historic Monuments of Ancient Nara."
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Sharp Sustainability Report 2014
Activities Overseas
As a corporate citizen, Sharp is proactively undertaking environmental conservation activities—including planting
and nurturing trees and releasing juvenile fish into water areas—that lead to biodiversity protection. Through efforts
such as these, targeting various environmental social issues at local bases around the world, Sharp aims to
develop environmental awareness among its employees while also contributing to the global environment.
Sharp will continue developing community-based environmental conservation activities through further cooperation
with local organizations.
Tree Planting in China
Beach Cleanup in Mexico
During a May 2013 tree-planting activity held in a
China-Japan Friendship Forest located in the
In July 2013, over 200 employees from SEMEX (a
Sharp production site in Mexico) and their families
Hohhot area of Inner Mongolia, employees of Sharp
China Group planted 5,500 tree seedlings.
joined people from the local community in a beach
cleanup. Afterwards, drum cans sporting original
designs painted by the employees were presented
and installed on the beach as trash cans to keep the
area clean.
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Sharp Sustainability Report 2014
[ For Local Communities ]
Social Contribution Activities for Harmony and Coexistence with Society
In July 2013, Sharp's environmental conservation activities, specifically the company's contributions to restoring
healthy water cycles, earned Sharp the Economy, Trade and Industry Minister's Prize; 15th Japan Water Prize
(sponsored by Japan Water Prize Committee*2).
Sharp's eco-friendly business activities and its awareness-raising
activities, such as environmental education and environmental/
biodiversity protection activities conducted in close cooperation
with local communities, have been recognized as activities that
contribute to healthy water cycles.
Many of those activities are carried out by Sharp Green Club
(SGC)*3, an environmental volunteer organization made up of
Sharp employees. SGC members plant trees, cultivate forests,
conduct cleanup campaigns, and raise and release small fish.
Over approximately the past 10 years, a total of 300,000
volunteers have participated in about 9,000 SGC activities in
Releasing indigenous small fish that were raised in a
biotope (regulating pond) on the premises of the
Kameyama Plant
By creating rich soil environments, Sharp is helping to prevent the depletion of water resources and to improve the
supply and circulation of high-quality, nutrient-rich water.
Award ceremony
Presentation on Sharp's environmental activities
*1 Established in 1999 to commend schools, companies, organizations, and local governments for activities that contribute to the creation
of healthy water cycles. It aims to realize a nation that has abundant nature and beautiful water and that is resilient to water disasters.
*2 With its secretariat office in "Japan River Association," a public interest incorporated association (Honorary President: Prince Akishino,
Chairman: Mr. Mamoru Mohri). Committee members who participate in the selection of award winners include the WWF Japan
Chairman, heads of various industrial organizations, and university professors.
*3 Sharp volunteer organization launched in 2003 and jointly operated by labor and management.
Related information:
Educational Activities
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Sharp Sustainability Report 2014
Words from the Sharp Green Club (SGC) Vice Chairman
I believe that Sharp Green Club's earnest and joint efforts between labor and
management have earned Sharp the Economy, Trade and Industry Minister's
Prize; 15th Japan Water Prize.
The aim of SGC is to foster awareness of environmental protection among
employees and give back to local communities through each and every
employee's participation in community-based social action programs.
In fiscal 2014, SGC set a yearly action policy "To conduct environmental and
biodiversity protection activities aimed at self-growth and coexistence with local
communities." We will continue to further our collaboration with local
governments and NPOs to undertake community-based activities, such as
community cleanup campaigns, tree planting, forest cultivation, and efforts to
protect rare flora and fauna.
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Sharp Sustainability Report 2014
[ For Local Communities ]
Social Contribution Activities for Harmony and Coexistence with Society
Educational Activities
Sharp is undertaking educational support activities directed at children, on whose shoulders the future will rest, to
increase their awareness of global environmental issues and their interest in science and to get them thinking about
future careers. Sharp has been gradually increasing its programs in Japan to include: environmental education
activities at elementary schools from fiscal 2006, elementary school product making education from fiscal 2009,
and factory tours and environmental/product making classes from fiscal 2010. From fiscal 2012, Sharp started
offering career education activities for special-needs schools*1 and similar organizations. Sharp also conducts
overseas educational support activities that help solve the environmental issues of each region.
*1 Schools designed to provide elementary, junior high, and high school education to the visually impaired, hearing impaired, and mentally
challenged. These schools help learners with special needs to overcome difficulties in learning and in daily life, and to obtain necessary
knowledge and skills to achieve a higher level of personal self-sufficiency.
Activities in Japan
Since October 2006, Sharp has been conducting environmental education activities at elementary schools. The aim
of the classes is to foster concern for the global environment in children by explaining the global warming problem
to them in easy-to-understand lessons that encourage them to save power, practice the 3Rs*2, and carry out other
specific eco-friendly actions. Another aim is to increase children's interest in science through experiments and other
As of March 2014, more than 3,300 schools (approximately 190,000 pupils) had participated in these activities.
Based on advice and requests received from teachers at the schools while implementing these programs, the fields
and range of participants are being expanded to include environmental education for hearing-impaired children and
for children overseas. In addition, Sharp has been developing activities— product making education, factory tours
and environmental/product making classes, and career education activities for special-needs schools and similar
organizations—that can lead to solving various social issues.
Elementary school environmental education
Development of Sharp's educational support activities
*2 3Rs: Reduce (reduce garbage), Reuse (use again), Recycle (recycle resources)
Related information:
Social Welfare Activities: Efforts at a Special Subsidiary
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Sharp Sustainability Report 2014
Activities Overseas
Sharp's overseas environmental education program began in fiscal 2008 and classes are held in countries including
China and ASEAN nations. In fiscal 2013, approximately 2,600 pupils in 30 schools overseas learned about
regional environmental issues, such as global warming and protection of the ecosystem.
As of May 2013, the number of pupils in China who had received environmental education exceeded 10,000.
Classes at China-based manufacturing subsidiary WSEC
Classes at Indonesia-based manufacturing subsidiary SSI
Classes at Malaysia-based manufacturing subsidiary SOEM
Classes at Philippines-based manufacturing and sales
subsidiary SPC
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Sharp Sustainability Report 2014
[ For Local Communities ]
Social Contribution Activities for Harmony and Coexistence with Society
Since fiscal 2012, Sharp Corporation and Sharp Tokusen Industry Co., Japan's first special subsidiary, have been
working together and combining their resources and know-how to offer career education activities to special-needs
schools* and similar organizations for physically or mentally challenged students.
In order to meet school needs, which can vary according to student proficiency and the amount of class preparation
required, the following courses are offered: (1) dispatch of employees to special-needs schools to conduct classes,
(2) workplace tours, and (3) work experience training.
For the management of these career education activities, the PDCA cycle is followed in consideration of class
needs as well as relevant matters at the all steps in the cycle. Specifically, the opinions of the Board of Education,
schools, students, and Sharp employees serving as lecturers are collected in a timely manner. Curriculums and
management methods are reviewed at regular in-house meetings, and improvements are made as needed, based
on the opinions collected. In addition, review meetings are held at the end of each fiscal year regarding the action
plans, curriculums, and instructor training plans for further improvements toward the next fiscal year.
* A subsidiary that has made special efforts supporting the employment of challenged people, as defined in the Act on Employment
Promotion, etc. of Persons with Disabilities (e.g. improvement of the facilities where the physically or mentally challenged work) in Japan.
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Sharp Sustainability Report 2014
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Sharp Sustainability Report 2014
[ For Local Communities ]
Social Contribution Activities for Harmony and Coexistence with Society
Social Welfare Activities
In the field of social welfare, Sharp focuses on providing support for the physically or mentally challenged. Activities
include employment of disabled persons at a special Sharp subsidiary; job assistance for the physically or mentally
challenged in the form of sales opportunities provided to vocational training centers for the disabled; and career
education support for children with disabilities in Japan. Sharp also undertakes support activities overseas, such as
donating to welfare facilities and charities, to combat various social issues and thereby improve the social welfare
of local communities.
Activities in Japan
Activities at a Special Subsidiary
Sharp Tokusen Industry Co., which was established as the first
special subsidiary in Japan, is not only promoting the employment
of the physically or mentally challenged but is also carrying out
activities to support the social participation of the disabled.
Specifically, as one of its activities to support career education at
special-needs schools and similar organizations, Sharp Tokusen
Industry Co. has been dispatching disabled employees to
special-needs schools as instructors to conduct classes and has
been actively providing workplace tours and work experience
training to the physically or mentally challenged. Through these
activities, the physically or mentally challenged participants have
cultivated a view of career and work that has helped them to
achieve a higher level of personal self-sufficiency.
A disabled employee of Sharp Tokusen Industry
conducts a career education support activity
Providing Sales Opportunities for Vocational Training Center Products
In a joint labor/management effort, Sharp works with local
governments and non-profit organizations to provide opportunities
on its premises for the sale of products, such as bread and
cookies, made at vocational training centers for the disabled
located in communities near Sharp facilities. In fiscal 2013, such
sales took place at 17 locations throughout Japan. In March, at 16
locations across the country, Sharp provided opportunities to sell
products from training centers in the Great East Japan
Earthquake-devastated Tohoku region of Japan, lending support
to the disabled and to reconstruction efforts there. Sharp will
continue to support the physically or mentally challenged by
providing opportunities to sell products made or produced at
vocational training centers.
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A sale of products from a vocational training center for
the disabled in Tohoku
Sharp Sustainability Report 2014
Words from a Staff Member of a Vocational Training Center for the Disabled
SELP Minato has been selling handmade cookies,
scones, and chiffon cakes in the cafeteria of Sharp's
Tochigi Factory since September 2012. We are grateful
for this sales opportunity.
Every time we visit the factory to sell our products—which
we market under the name Hikari no Café—Sharp
employees tell us that our chiffon cakes are very tasty.
The disabled participants from our facility are immensely
encouraged by this and are always looking forward to
Participants making confectionaries
their next sales opportunity.
We will continue to work hard to provide handmade products and ask for your continued support.
Tomio Yokoshima
Care worker
Social welfare corporation Elm SELP* Minato
* SELP: Support of Employment, Living and Participation. A coined term for 'Self-help,' which means 'self-sufficiency and
(Excerpt from the National Social Work Center website)
Words from a Cooperating Support Group Manager
At vocational training centers for the disabled, various physically or
mentally challenged persons are trying hard to find their own ways
of working to contribute to society and achieve self-sufficiency.
Sales activities at companies provide valuable opportunities for
participants to meet many people. Such activities also boost
participants' motivation and help them achieve a higher level of
self-sufficiency by providing salaries from the sales revenue
generated by products produced at their centers.
To increase public awareness of their work and products, Tochigi
SELP Center supports activities of such vocational training centers
from various aspects, such as promoting their products, developing
new products, and creating new sales channels.
Activities Overseas
As a corporate citizen, Sharp is targeting priority issues in social welfare even at local bases around the world. The
company focuses on making donations and undertaking charitable activities for schools and facilities for the
physically or mentally challenged and the elderly. These activities lead to greater social awareness in Sharp
employees while also contributing to local society. Sharp will continue actively developing community-based social
welfare action programs.
Donating to a welfare facility in China
In May 2013, the China-based manufacturing
subsidiary SOCC donated powdered milk to a local
Donating to a welfare facility in Malaysia
In July 2013, SEM, a technology development and
components supply base in Malaysia, donated
products such as LCD TVs to local homeless
support facilities.
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Sharp Sustainability Report 2014
[ For Local Communities ]
Social Contribution Activities for Harmony and Coexistence with Society
Employee Volunteer Activities
In an effort to pass on the gratitude of its founder, Sharp actively encourages its employees to take part in volunteer
activities that give back to local communities.
Based on the three points listed below, Sharp works to create an environment where each and every employee can
actively participate in community-based social action programs and volunteer activities:
1. Establishing volunteer leave and other company systems
2. Establishing the volunteer organization Sharp Green Club (SGC) as a joint effort between labor and
3. Providing employees opportunities to participate in volunteer activities in coordination with NPOs and other
third-party organizations
By providing opportunities to participate in community-based volunteer activities and in reconstruction efforts to help
areas devastated by the Great East Japan Earthquake that still require support, Sharp is fostering a volunteer spirit
at the company and enhancing social awareness among its employees.
As one of its community service activities, Sharp
volunteers at marathon events held near its business
Employees increase their understanding of persons
with disabilities by taking part in volunteer activities
that support the physically or mentally challenged
Related information:
Environmental Activities
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Sharp Sustainability Report 2014
Stakeholder Communications
Sharp's business philosophy includes the statement, "Our future prosperity is directly linked to the prosperity of our
customers, dealers, and shareholders...indeed, the entire Sharp family." In order to put this business philosophy
into practice, Sharp uses various opportunities to proactively communicate with its stakeholders.
Please click
in the diagram below to see more detailed information for customers, business partners,
shareholders and investors, employees, and local communities.
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Sharp Sustainability Report 2014
Stakeholder Communications
Communicating with Customers
Incorporating Customer Feedback into the Creation of New Products and the Provision of
After-Sales Service
In fiscal 2013, Sharp further strengthened customer support on the company website to enable customers to solve
problems themselves, based on feedback received at its Customer Assistance Center.
For example, Sharp took the customer's perspective in expanding the services it offers. Initiatives included
broadening the types of products covered under Fault Diagnosis Navigation—which enables users to identify the
presence of a product malfunction by answering on-screen questions—to include LCD TVs, Blu-ray Disc
Recorders, washing machines, air conditioners, refrigerators, facsimiles, and phones. Sharp also made
improvements in its Visual Guides, which use animated graphics to lead users through product maintenance
procedures that would be difficult to convey using only words and illustrations. A new feature allows customers to
use a smartphone to arrange for product repairs. Sharp is also working to provide greater convenience by
introducing an Interactive Voice Guidance Phone Service (via a dedicated toll-free number) that uses interactive
voice responses to guide users through frequently asked questions and their solutions. This service will enable
users to solve problems even outside the normal operating hours of the Customer Assistance—for example, late at
In addition, Sharp has set a goal to create attractive products from three user perspectives ("Want to try using a
product," "Finding it easy to use," and "Wanting to continue using the product for a long time…"). To this end, Sharp
collects and analyzes information on how customers interact with products, using sources in addition to the verbal
feedback obtained from the Customer Assistance Center—for example, door-to-door surveys, questionnaires,
usability testing (tests to observe how customers actually operate products), and other means.
Usability testing
Inviting users to operate products
Observation of users by staff involved in product development
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Sharp Sustainability Report 2014
Communicating with Business Partners
Meetings with Business Partners
Last year, Sharp introduced its Business Group System. In
concert with this new organizational approach, both the Display
Device Business Division and the Electronic Components and
Devices Division have been jointly holding meetings with
suppliers and vendors every six months. These gatherings offer
the opportunity to explain Sharp's commitment to CSR, discuss
current business conditions and business policies, and request
the understanding and cooperation of our business partners.
In the future, Sharp will actively work to communicate with its
business partners in a positive, constructive manner, while
continuing to engage in harmonious business transactions based
Meeting with business partners
on a mutual understanding of Sharp's Basic Purchasing
Communicating with Shareholders and Investors
Communicating with Institutional Investors
At both the Osaka and Tokyo Offices, major activities during fiscal
2013 included facilitating occasional one-on-one meetings with
institutional investors and analysts, arranging business strategy
briefings, and organizing visits to institutional investors in North
America, Europe, and Asia.
In addition, Sharp also participated in conferences sponsored by
securities companies aimed at domestic and foreign investors.
The company also conducted briefings and Q&A sessions
concerning financial results and measures to improve business
foundations, such as strengthening the company's financial
In the future, Sharp will strive, through its investor relations
activities, to give a broad range of investors an accurate
understanding of Sharp's business strategy and business
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Meeting with an analyst
Sharp Sustainability Report 2014
Communicating with Employees
Promoting Activities that Enhance Internal Communications
Sharp regards internal communications—whether personal, workplace, or corporate—as vital both to the fostering
of an enthusiastic, "can-do" spirit among employees and to the future vigorous growth of the company. Accordingly,
the company has organized an Internal Communications working group that includes members from across the
organization, including the following departments: business planning, public relations, human resources, brand
management, investor relations, and IT. A variety of collaborative measures have been deployed on a
company-wide basis.
Field Visits to Sharp Bases by President Takahashi
Sharp President Kozo Takahashi has been personally visiting each base in Japan and abroad, and in addition to
seeing what's going on at each factory or business office, he is exchanging views with employees who work at the
location. These on-site visits represent a valuable opportunity to enhance the cohesion and morale of all employees
by enabling them to voice their opinions as they go about their job tasks each day, as well as for the President to
give considerate advice based on his own thoughts and experiences.
President Takahashi hears about the efforts of each department
(Yaita City, Tochigi Prefecture)
Asking questions about products
(SESL sales offices, Singapore)
Encouraging employees
(Yamatokoriyama City, Nara Prefecture)
Holding discussions with young employees
(Katsuragi City, Nara Prefecture)
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Sharp Sustainability Report 2014
Introduction of In-house Social Networking Service; Constructive Use of the Corporate Intranet
In May 2013, Sharp introduced an in-house Social Networking Service (SNS) to disseminate information and
facilitate an exchange of views that cross the barriers of organization and geographic area.
In addition, Sharp is working proactively to disseminate information via its in-house website. Included on the
website is coverage of President Takahashi's field visits to bases, personal profiles of corporate executives, and
information on Sharp's business situation and various policies and measures.
Appointment of Internal Communications Promotion Committee
In July 2013, in Japan, Sharp appointed an Internal Communications Promotion Committee to accurately convey
company information and the intent of policies. The Committee was also tasked with confirming whether policies
were taking root in the field and with relaying opinions directly from the field back to the Head Office. The Internal
Communications Promotion Committee also serves to report on the activities of each business site and affiliated
company, and it plays a role in sharing information company-wide.
Communication through Events and Social Gatherings
Sharp also actively arranges opportunities for communication outside of work through regular social gatherings at
each workplace (shoku.com) and through exchanges based on project activities that cut across departmental
boundaries, as well as at events such as sports meets, hiking trips, and cultural festivals.
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Sharp Sustainability Report 2014
Communicating with Local Communities
Promoting Community Service Activities in Collaboration with Stakeholders
Collaboration with various stakeholders is important in planning
and promoting community service activities, especially when one
considers that such activities can lead to solutions to challenges
facing communities. Accordingly, Sharp strives always to
undertake highly effective activities by consulting with relevant
governmental and non-profit organizations and by exchanging
information and opinions to gain an understanding of the needs
and trends in the community. In addition, based on close
communication with people in the local community, school officials,
and employees who work in the field, Sharp conducts occasional
reviews of such activities.
A regional educational promotion project:
Specifically, in educational support activities, Sharp seeks the
Introducing environmental education at the 3rd Annual
Exchange Get-Together (Nara City)
opinions and cooperation of school boards, principals'
associations, and other relevant groups such as the Ministry of Education. The company then makes improvements
in the activities based on responses to questionnaires submitted by schools and based on reports from employeeinstructors and instructors from cooperating non-profit organizations. Also, Sharp has been able to provide a
deeper understanding of company activities through the participation of educators in these events.
In addition, Sharp promotes its activities in the environmental and social service fields by engaging in regular and
timely communications with all relevant ministries and local governmental agencies, as well as with local councils
and non-profit organizations.
Sharp will continue to collaborate with all relevant parties and will work to further such exchanges with people in
local communities in the future.
Toward Factories with Roots in the Local Community
Mie Plant
Holding Meetings to Exchange Views with Local Residents
At the Mie Plant in Mie Prefecture's Taki township, Sharp has been
undertaking elementary school environmental education and social
service activities on an ongoing basis. Various activities—for
example, mowing fallow rice fields—have been conducted with a
view to providing solutions to community problems such as the
aging society and depopulation.
During October and November 2013, informal meetings to
exchange views and discuss issues were held on five occasions.
Attending these meetings were a total of 37 local residents of Taki
Meeting for informal discussions held in the Tokida
township, the site of the Mie Plant. These meetings are also
area of Mie Prefecture
intended to bring about a deeper understanding of the plant's
environmental conservation and regional service activities, as well as to reflect opinions and requests from the
residents in future activities.
Participants have expressed their gratitude to Sharp for coming to the area and conducting such activities. They
look forward to exploring activities in which they can collaborate. They also expressed the idea that when a
company comes to an area, it is important that employees and residents interact with one another. Sharp has also
received a number of suggestions for specific events.
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Sharp Sustainability Report 2014
Kameyama Plant
Environmental Communication Awards 2013
CSR REPORT 2013 Wins Encouragement Prize in the 17th Environmental Communication Awards*
Each Sharp production base publishes an annual environment site report that summarizes the environmental
activities of the plant with the goal of communicating these efforts to the local community.
In fiscal 2013, the CSR REPORT 2013 produced by Sharp's Kameyama Plant (located in Kameyama City, Mie
Prefecture) was the recipient of an "Encouragement Prize" in the 17th Environmental Communication Awards 2013.
The Kameyama Plant distributes copies of this report to customers who visit the plant. It also works to disseminate
information targeted at local residents—for example, by making copies of its report available at the municipal
government offices of Kameyama City.
* The Environmental Communication Awards are co-sponsored by Japan's Ministry of the Environment and the Global Environmental
Forum. By honoring environment-related TV commercials and outstanding environmental reporting efforts such as environmental activity
reports, these awards aim to promote environmentally conscious management, foster a commitment to open environmental
communications, and improve the quality of environmental information disclosure by business entities.
Recipient (left) of an Encouragement Prize under The
Environmental Communication Awards
Kameyama Plant CSR REPORT 2013
Related information:
Environmental site reports for Sharp production facilities
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Sharp Sustainability Report 2014
Third-Party Opinion and Response
Sharp Sustainability Report 2014 Third-Party Opinion
Comprehensive Report Covering All Sustainability Efforts
Sharp's Sustainability Report is characterized by comprehensive explanations that emphasize how the company's
sustainability activities relate to its business. This thoroughness can be seen by looking at the ISO 26000 content
index. From its sustainability activity strategy to various individual sustainability efforts, Sharp provides details that
include comments from the people in charge, explanatory articles, and data. These days, when many companies'
CSR reports are little more than glorified company brochures, Sharp should be lauded for this kind of sincere
disclosure of information. The report also meticulously explains how Sharp's sustainability efforts relate to its
business activities. I am interested in seeing how Sharp will carry out its policy of recovery and growth through its
sustainability strategy. To this end, the company will need to identify and take action in the business areas that will
contribute in the long term to creating value for as many stakeholders as possible.
Making 'Green Shared Value' a KPI
Sharp has recently been advocating what it calls 'Green Shared Value' (GSV), a concept that has taken on even
greater importance in this year's Sustainability Report as Sharp positions it as a KPI (key performance indicator).
Making environmental indicators into KPIs is extremely important in furthering sustainability strategies, and in this
respect Sharp's efforts have garnered widespread attention. Professor David Stark of Columbia University says that
a key determinant to innovation within an organization is having a diversity of performance evaluative principles. I
look forward to seeing Sharp create environmental innovation through GSV.
Activities Focused on the Supply Chain
A close reading of this Sharp report shows that supply chain activities contribute on both the environmental and
social sides. Important Sharp efforts include compliance with the GHG Protocol Corporate Value Chain (Scope 3)
Standard, pursuit of CSR throughout the entire supply chain, and green procurement. To continuously raise
corporate value, global society demands that a company create shared value throughout its supply chain. That's
why I'd like to see Sharp step up its supply chain efforts and thus boost its corporate value. Behind the supply chain
lie the communities where Sharp does business. I hope that Sharp expands its contributions to these communities
to create a virtuous circle in which these contributions positively affect the company's business activities.
Career Overview
Took up current position in 2001.
Appointed dean, Graduate School of Business Administration, Kobe University in
Specialized fields: Social and environmental accounting, environmental management,
CSR management
Books authored: Material Flow Cost Accounting, Nikkei Publishing Inc.
Environmental Management and Accounting, Yuhikaku Publishing Co., Ltd.
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Sharp Sustainability Report 2014
Sharp's Response
We sincerely thank Professor Kokubu for his valuable advice once again this
In his third-party opinion column, Professor Kokubu lauded Sharp for tying its
CSR activities to its business and for making the important concept of 'Green
Shared Value' a KPI. Sharp will continue efforts in these areas, in particular
expanding activities based on Green Shared Value, as it strives to achieve the
targets of its key initiatives.
Sharp will strive to create even higher value throughout the supply chain and
continue to hold dialog with all its stakeholders so that it can connect society's
hopes and expectations to its business management and in doing so contribute
to the realization of a sustainable society.
August 2014
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Sharp Sustainability Report 2014
[ Guideline Content Index ]
ISO 26000 Content Index
Sharp is pushing forward with CSR measures, acting in accordance with ISO 26000, an international standard
providing guidance on social responsibility.
Core Subjects
Relevant Sections
Policy on CSR Activities
Management Strategy and CSR
Corporate Governance
Organizational governance
Internal Control
Risk Management
Top Message
Respect for Human Rights
Fair and Impartial Procurement
1. Due diligence
2. Human rights risk situations
3. Avoidance of complicity
Human rights
Promoting CSR across the Supply
4. Resolving grievances
5. Discrimination and vulnerable groups
6. Civil and political rights
7. Economic, social, and cultural rights
8. Fundamental principles and rights at work
Dealing with the Conflict Minerals
Developing Company-Wide Diversity
Activities to Support Work-Life
Promoting Occupational Safety and
Top Message
Fostering a Vibrant Corporate Culture
Respect for Human Rights
1. Employment and employment relationships
Labor practices
2. Conditions of work and social protection
3. Social dialog
4. Health and safety at work
5. Human development and training in the workplace
Human Resource Development
Developing Company-Wide Diversity
Activities to Support Work-Life
Promoting Occupational Safety and
Top Message
1. Prevention of pollution
2. Sustainable resource use
3. Climate change mitigation and adaptation
4. Protection of the environment, biodiversity, and
restoration of natural habitats
Management Strategy and CSR
Enviromental Activities
(Environmental Sustainability
Management / Product Development /
Product Manufacture / Logistics /
Disposal, Recycling / Biodiversity
System to Promote Compliance
Putting Compliance into Practice
1. Anti-corruption
Fair operating
2. Responsible political involvement
3. Fair competition
4. Promoting social responsibility in the value chain
5. Respect for property rights
Fair and Impartial Procurement
Promoting CSR across the Supply
Dealing with the Conflict Minerals
Intellectual Property
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Sharp Sustainability Report 2014
1. Fair marketing, factual and unbiased information, and
fair contractual practices
2. Protecting consumers' health and safety
3. Sustainable consumption
4. Consumer service, support, and complaint and
dispute resolution
5. Consumer data protection and privacy
6. Access to essential services
7. Education and awareness
1. Community involvement
involvement and
2. Education and culture
3. Employment creation and skills development
4. Technology development and access
5. Wealth and income creation
6. Health
7. Social investment
― 167 ―
Ensuring Quality and Safety
Making Easier-to-Use Products
Boosting Customer Satisfaction
Promoting CSR across the Supply
Information Security / Protecting
Personal Information
For Local Communities
(Promoting Social Contribution
Activities / Environmental Activities /
Educational Activities / Social Welfare
Activities / Employee Volunteer
Sharp Sustainability Report 2014
[ Guideline Content Index ]
United Nations Global Compact 10 Content Index
Sharp joined the United Nations Global Compact in June 2009 and is pushing forward with CSR activities in line
with the Global Compact's 10 principles.
The Global Compact's 10 Principles
Relevant Pages
Top Message
Objectives and Achievements in the
Social Dimension of CSR
Fair and Impartial Procurement
[ Human Rights ]
Principle 1:
Businesses should support and respect the protection of
internationally proclaimed human rights; and
Principle 2:
make sure that they are not complicit in human rights
Promoting CSR across the Supply
Respect for Human Rights
Developing Company-Wide Diversity
Activities to Support Work-Life
Promoting Occupational Safety and
Top Message
Objectives and Achievements in the
Social Dimension of CSR
[ Labour ]
Principle 3:
Businesses should uphold the freedom of association and
the effective recognition of the right to collective
Fair and Impartial Procurement
Promoting CSR across the Supply
Principle 4:
the elimination of all forms of forced and compulsory
Respect for Human Rights
Principle 5:
the effective abolition of child labour; and
Principle 6:
the elimination of discrimination in respect of employment
and occupation.
Developing Company-Wide Diversity
Human Resource Development
Activities to Support Work-Life
Promoting Occupational Safety and
Top Message
[ Environment ]
Principle 7:
Management Strategy and CSR
Businesses should support a precautionary approach to
environmental challenges;
Principle 8:
Principle 9:
undertake initiatives to promote greater environmental
responsibility; and
encourage the development and diffusion of
environmentally friendly technologies.
Environmental Policy
Environmental Activities
(Environmental Sustainability
Management / Product Development /
Product Manufacture / Logistics /
Disposal, Recycling / Biodiversity
Top Message
Objectives and Achievements in the
[ Anti-Corruption ]
Principle 10:
Businesses should work against corruption in all its forms,
including extortion and bribery.
Area of Management
System to Promote Compliance
Putting Compliance into Practice
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22-22 Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan
Phone: +81-6-6621-1221
Published September 2014
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