OMRON's CSR Vision for a Decade from Now

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Innovation Driven by Social Needs and Customer Issues

Perception of society 10 years into the future	Ten years from now, it will be natural that companies solve various social challenges through their core businesses such as supply of products, services and technologies. The challenges that companies are required to address will include not only environmental issues but also issues related to an aging society with declining birthrate, education, regional and individual wealth disparities, and poverty. Each company's commitment to tackling these social issues and outcomes of its efforts will determine the real value of that company. Regardless of national economic situations, today's mass consumption/mass disposal-oriented lifestyle will be forced to change, and many consumers will demand more eco-friendly products and services that are based on fair dealings. As a result, people will come to seek more psychological fulfillment and a rewarding lifestyle and become more conscious of health. Along with companies' proactive information disclosure and advancement of communications technology, consumer knowledge regarding products, services and other aspects of corporate activities will improve along with their information-gathering abilities. This will make consumers take a harder look at corporate activities. Consumers' discerning judgments will allow only a company that is seriously committed to harmonious coexistence with society to continue to be in business and grow.
OMRON's roles in society in 10 years	Since the inception of the company, OMRON has lived up to its core value of "working for the benefit of society." OMRON envisions the Optimization Society in which a complete balance is achieved between individuals and society, between humans and the environment, and between people and machines. Accordingly, the company puts prime importance on the concept of "innovation driven by social needs," which will allow OMRON to introduce innovative products and services to the world ahead of its competitors. This means promoting business operations in such a way as to help build a better society, and OMRON recognizes that society will demand this even more strongly in 10 years to come. All employees feel a strong sense of responsibility to meet this requirement, and maintain a spirit of challenging themselves to meet the great opportunities presented to them. Specifically, OMRON will continue to offer health promotion solutions to consumers and provide corporate clients with safety and security by drawing on its sensing and control technology. In addition, OMRON will be integrating all employees' efforts to deliver a positive impact on society both domestically and internationally, by developing businesses related to a sustainable lifestyle and social structure. At the same time, OMRON will subject itself to the critical eye of society as it seeks fairness and integrity as a manufacturer, while providing maximum quality and environmental consciousness. As such, OMRON will fulfill its responsibility by avoiding any negative impact on society.
OMRON's CSR vision for a decade from now	The most effective way to steadily promote innovation driven by social needs is through alliances and partnerships with various stakeholders, both internal and external, in comprehensive areas from research and development to production and sales. OMRON envisions that in 10 years it will have a full-fledged system in place for collaborative innovation with its customers (both consumers and businesses), business associates, governmental agencies, NPOs and others. By materializing "discoveries" that OMRON has gained through collaborations with various stakeholders, many innovative and socially beneficial products and services will become available from OMRON. OMRON will also apply this process of collaborative innovation to social and economic development throughout the world, offering support in the areas of healthcare, safety and security particularly to minorities and vulnerable groups. This will allow OMRON to uncover and meet the potential needs of society. OMRON, as a manufacturer, will also remain committed to product quality and take pride in this effort, while maintaining a top-level global reputation.

Fair Operating Practices and Organizational Governance

Perception of society 10 years into the future	With increased deregulation in trade and investment, accompanied by the accelerated globalization of economies, there is an urgent need to establish international rules regarding economic activities, while striving to align these with local rules. Against the backdrop of expanding economic disparities within companies or among different countries, the possibility that developing countries may suffer disadvantages will be left unsolved. This will increase public demand for more oversight of corporate activities, so as to ensure strict practice of ethical behavior. Along with this trend, the scope of　stakeholders will expand both upstream and downstream, while a company's relations with governmental organizations or NPOs will deepen. Reflecting these conditions, society will demand even more corporate efforts to promote fair operating practices and further improvement of quality for organizational governance.
OMRON's roles in society in 10 years	As in the past, OMRON will follow the principle that ethical behavior and economic performance are not mutually exclusive, and that simultaneous achievement of both across the OMRON Group will lead to enhancement of its long-term credibility and corporate value. As OMRON's business activities in emerging economies continue to grow and thrive, it will be essential that OMRON take responsibility for imbuing and strictly complying with corporate ethics and international rules. This not only relates to direct transactions but also involves providing support as the situation requires for fair dealings and business activities throughout the entire supply chain. To earn trust and confidence from a diverse range of stakeholders, it will be necessary for OMRON to strive for sincere information disclosure to strengthen transparency and accountability in corporate activities.
OMRON's CSR vision for a decade from now	The target image that OMRON envisions is a corporate group equipped with a system for implementing consistent, globally applicable guidelines for compliance and corporate ethics. Instead of limiting this effort to within its Group, OMRON envisions assuming a leading role in helping to share international rules across the Japanese business community. By consistently communicating the concept of mutual respect and mutual growth, OMRON will be able to encourage fair dealings throughout its supply chain. In particular, a system will be established to promote compliance and ethical behavior targeting suppliers. To stay responsive to changes in the social environment, OMRON will proactively maintain communication with its stakeholders. By so doing, OMRON will do its part in building values and making rules that can be shared across the global community as necessary while addressing social issues through concerted Group efforts.

Human Rights

Perception of society 10 years into the future	Increasing global competition and worldwide mobilization of human resources can have a negative side, in terms of unfair treatment of the labor force. In addition to human rights issues caused by destruction of the global environment, conflicts, political insecurity and epidemics, there are other factors that can create new types of threats toward human rights. For example, technology advancements have enabled the accumulation of personal information in medical, healthcare and other security-related services and businesses. As corporate operations become more globalized in the future, and as more and more types of human rights infringement become possible, the challenges that companies face will increase both in scope and complexity.
OMRON's roles in society in 10 years	As OMRON's corporate activities become increasingly globalized, its employees will become more and more diverse. This will make it more important than ever to fully instill the spirit of "respect for humanity" into its organizations and individual employees around the world, and to make sure that this takes root among employees as their own values. It will also be possible that inappropriate applications of technology may lead to infringements of human rights, mainly in the fields of healthcare and social infrastructure systems. OMRON therefore considers it its mission to make a move toward appropriate use of technology. OMRON should also expand its long-standing commitment to persons with disabilities, helping them take a more active role in society. While doing so, OMRON will consider ways to help solve the poverty crisis, which touches on a number of human rights issues.
OMRON's CSR vision for a decade from now	The target image that OMRON envisions is that of a company that eliminates all discrimination in staff recruiting and provides all employees with equal opportunities related to education and promotion. In addition, the company will provide employees with human rights education that is compliant with global standards, with the goal of deeply instilling a spirit of respect for human rights among them. At the same time, OMRON will increase its organizational strength so as to allow a diversity of talents to be fully demonstrated. In business, OMRON will work in tandem with stakeholders on establishing guidelines for the application of technology. Although the guidelines will focus on areas of technology in which the OMRON Group is engaged, OMRON will strive to extend these focus areas, aiming to demonstrate leadership in both the protection of human rights and the application of science and technology. For regions in which human rights are being infringed, OMRON will cooperate with governments and NPOs to address the issue. At the same time, OMRON will strengthen its support for persons with disabilities, a long-lasting commitment since the company's inception. Specifically, OMRON will proactively assist persons with disabilities to increase self-reliance, while supplying products and services that address the challenges faced by them. By so doing, OMRON will do its part to widely inform the public about these issues and raise awareness throughout society.

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Labor Practices

Perception of society 10 years into the future	In Japan, the so-called "part-timer society" or "free agent society" will continue to expand, along with other styles of working that differ from formal employment. The concept of work-life balance will permeate society, accompanied by a global-level mobilization of human resources. This will in turn give rise to increasingly diversified value perceptions regarding work. Under such circumstances, companies will continue to struggle to seek ideal corporate systems and support initiatives so that employees will be able to choose the optimal working style and workplace environment depending on their individual values. More than ever, this will require people in managerial posts to serve as coordinators to realize optimization of corporate resources, encouraging more and more managers to become professionals. Each organization will assign human resource development experts to key posts and develop its own educational programs. An important factor in differentiating a company from others when recruiting staff will be the level of corporate commitment to helping cultivate diverse talents and skills.
OMRON's roles in society in 10 years	At OMRON, our belief is that self-reliant employees who can think and act on their own initiative are a key driver of corporate creativity. The idea of "free agents" who work in a style most appropriate to them according to the nature of the task, and who do so by leveraging their own knowledge and skills, will be positioned as an extension of these self-reliant employees. By combining self-reliant employees and external free agents in the most optimal manner, OMRON will evolve into a company that will deliver satisfaction on both the individual and organizational levels, while promoting the growth of both. During the course of this evolution, OMRON aims to become a company with abundant and powerful human resources. Staff will respect differences among individuals, have a strong sense of curiosity and the energy to take action. At the same time, the concept of work-life balance and respect for diversity and individuality will spread throughout the company. This will provide a high level of satisfaction to employees, while also making OMRON a company of choice among job seekers.
OMRON's CSR vision for a decade from now	Aiming for the development of a workplace that allows all employees to display their individuality in work, OMRON will continue to emphasize improvement in management capabilities, and the ability to develop human resources for those in managerial positions. In response to the increasingly diversified and multinational composition of human resources, OMRON will design and deploy global standards-compliant systems of personnel development, evaluation/remuneration and management. While doing so, OMRON headquarters will work to enable flexible localized operation of these systems in each region. Promotion of local staff into positions of responsibility will continue to be a top priority, but OMRON as a global company will accelerate implementation of the "right person in the right place" placement policy. This will ensure sufficient mobility to assign talented people to various departments or countries as necessary. At the same time, OMRON will develop and strengthen human resource management systems and initiatives so as to make maximum use of work-ready "free agents" available from external sources. In this quest for optimal human resources, OMRON will work to realize a networked workplace in which talented people can collaborate. Such a workplace, along with various support initiatives, would encourage diversified talents to assume important roles at work, regardless of gender, disabilities or other factors.

Environment

Perception of society 10 years into the future	With the 2020 deadline for the post-Kyoto Protocol target just around the corner, countries across the world will come to recognize the limitations of international action to combat global warming. Among nations, the great powers will continue to oppose numerical targets, and it is very unlikely that there will be any meaningful reduction in greenhouse gas emissions, not only in developed countries but developing countries as well. It appears that the EU nations and Japan will also fail to meet their targets. In light of this situation, arguments regarding the adoption of a carbon tax or environmental tax will continue, but it remains to be seen if any countries will actually implement them, resulting in a continued stalemate. Because of this, we're likely to see a number of small islands disappear into the ocean, while disasters such as forest fires stemming from climate change will increase. It is most likely that the supply of fresh water resources will continue to decrease. This could result in shortages of safe drinking water, which could in turn lead to the outbreak of "water wars." As the shift to bioethanol accelerates due to petroleum energy shortages and global warming issues, the argument of food vs. fuel will re-emerge, with no sign of improvement. At the same time, private-level transfer of environmental technologies to developing countries will increase in parallel with the advancement of environmental technology.
OMRON's roles in society in 10 years	In view of anticipated increases in demand for capacitors, backlights and other products designed to reduce environmental impact, as well as healthcare products that address health concerns stemming from environmental destruction (mainly in developing countries), it will become increasingly important for OMRON to contribute to environmental conservation for developing countries in the form of technology transfer and international contributions. OMRON will further expand its corporate activities in newly emerging economies. Because of this, the company realizes the need for activities that extend beyond reducing the environmental impact of the OMRON Group's business activities alone, addressing broader environmental issues of the countries/regions in which it operates. Aware of this, OMRON will examine the initiatives and target regions that will be most productive at the global level in tackling global warming and energy shortage issues and concentrate its resources on these to make the most significant contributions possible.
OMRON's CSR vision for a decade from now	As a private company, OMRON seeks to assume leadership in areas such as transfer of environmental technologies, where it can contribute through its business operations. As for global warming issues, OMRON will make effective use of existing frameworks such as the Clean Development Mechanism (CDM) to contribute to CO₂ emissions reduction in developing countries in a visible manner. OMRON will proactively seek ways to contribute to society through the employment of its core technologies. Possibilities include visualization of environmental issues by drawing on OMRON's proprietary sensing and control technology. OMRON will also strive to take the lead in international discussions aimed at solving environmental issues.

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Social and Economic Development of Communities

Perception of society 10 years into the future	As the world's population increases, the corresponding environmental impact will continue to grow. This will make harmonious coexistence between companies and society even more important than today. Economic development in emerging countries will be accompanied by negative consequences such as widening regional and individual wealth disparities and worsening food and water issues. Although it is obvious that the prime responsibility for social development^* lies with the government, all organizations will be required to play a role in social development. These roles will include helping to reduce poverty and hunger, offering education and training, improving public health and the living environment, and working to preserve cultural heritage. In Japan in particular, various organizations are expected to address issues caused by a declining birthrate. To tackle these societal challenges, community involvement^** will be vital, along with economic development. Companies will need to thoroughly understand the social impact of their operations and optimally adapt their activities to ensure maximum benefits for both themselves and society as a whole. * Social development refers to initiatives to promote social and economic development of a community. Community involvement** refers to providing active assistance to a community as a responsible member of that community.
OMRON's roles in society in 10 years	In ten years, the challenges that companies must address will become broader in scope and more complex. This will make it a basic prerequisite for companies to grasp the extent and status of their current and potential impact. To this end, it will be vital to promote community involvement and aggressively engage with social development, so as to correctly assess changes in social conditions and expectations. Doing so is an important mission for OMRON, and will also provide OMRON with a source of its core strengths in conformance with its commitment to "innovation driven by social needs." Once this is accomplished, exercising leadership over social investment by drawing on the unique characteristics and expertise of OMRON's business, or through collaborations with other companies/industries if necessary, will be the most suitable social development strategy for OMRON. As a global company originating in Japan, OMRON should fulfill its role to relay problems in other parts of the world to Japanese society, so as to raise public awareness and encourage action.
OMRON's CSR vision for a decade from now	OMRON aims to assume an international leadership position in social development by communicating its vision of what a sustainable society would look like. In underprivileged regions, OMRON's focus will be on healthcare, social infrastructure and employment. OMRON will also serve as a leader in promoting health, safety and security－both mental and physical－in rapidly aging advanced societies. These efforts will be promoted as part of its process of creating "innovation driven by social needs." OMRON will also share with the global community its unique stance for social development (i.e., a model of corporate development integral with society through partnerships with the government or NPOs). With "enhancement of QOL for people with limitations" as its basic policy, OMRON will implement various contribution activities tailored to each community's needs. Employees will also be encouraged to take part in community activities individually, resulting in a synergy between social development as part of the business process and community involvement of individual employees.

Perception of society 10 years into the future

As the world's population increases, the corresponding environmental impact will continue to grow. This will make harmonious coexistence between companies and society even more important than today. Economic development in emerging countries will be accompanied by negative consequences such as widening regional and individual wealth disparities and worsening food and water issues. Although it is obvious that the prime responsibility for social development^* lies with the government, all organizations will be required to play a role in social development. These roles will include helping to reduce poverty and hunger, offering education and training, improving public health and the living environment, and working to preserve cultural heritage. In Japan in particular, various organizations are expected to address issues caused by a declining birthrate.
To tackle these societal challenges, community involvement^** will be vital, along with economic development. Companies will need to thoroughly understand the social impact of their operations and optimally adapt their activities to ensure maximum benefits for both themselves and society as a whole.

* Social development refers to initiatives to promote social and economic development of a community.

** Community involvement refers to providing active assistance to a community as a responsible member of that community.

OMRON's roles in society in 10 years

In ten years, the challenges that companies must address will become broader in scope and more complex. This will make it a basic prerequisite for companies to grasp the extent and status of their current and potential impact. To this end, it will be vital to promote community involvement and aggressively engage with social development, so as to correctly assess changes in social conditions and expectations. Doing so is an important mission for OMRON, and will also provide OMRON with a source of its core strengths in conformance with its commitment to "innovation driven by social needs." Once this is accomplished, exercising leadership over social investment by drawing on the unique characteristics and expertise of OMRON's business, or through collaborations with other companies/industries if necessary, will be the most suitable social development strategy for OMRON.
As a global company originating in Japan, OMRON should fulfill its role to relay problems in other parts of the world to Japanese society, so as to raise public awareness and encourage action.

OMRON's CSR vision for a decade from now

OMRON aims to assume an international leadership position in social development by communicating its vision of what a sustainable society would look like. In underprivileged regions, OMRON's focus will be on healthcare, social infrastructure and employment. OMRON will also serve as a leader in promoting health, safety and security－both mental and physical－in rapidly aging advanced societies. These efforts will be promoted as part of its process of creating "innovation driven by social needs." OMRON will also share with the global community its unique stance for social development (i.e., a model of corporate development integral with society through partnerships with the government or NPOs). With "enhancement of QOL for people with limitations" as its basic policy, OMRON will implement various contribution activities tailored to each community's needs. Employees will also be encouraged to take part in community activities individually, resulting in a synergy between social development as part of the business process and community involvement of individual employees.

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