Overall, this is an excellent report serving as evidence that the management and business plans reflect the Group philosophy of Mitsubishi Chemical Holdings (MCHC): "Good Chemistry for Tomorrow – Creating better relationships among people, society and our planet."
In its APTSIS 15 mid-term management plan that began in April 2011, MCHC incorporated Management of SUSTAINABILITY (MOS) indexes in addition the conventional management indexes. The greatest feature of the Report is that it makes this point clear. Last year, I stated as a third-party opinion that in striving for “KAITEKI Society, as advocated by Mitsubishi Chemical Holdings, the Mitsubishi Chemical Holdings Group initially needs to clarify Sustainability, Health and Comfort, which have been stipulated as strategic criteria for its corporate activities, as key indicators. These then have to be combined with financial indicators to serve as criteria in steering business selection and focus.” This year’s Report specifically presents these indexes as Management of SUSTAINABILITY (MOS) indexes. We can clearly see from the Report that the Company has set a policy of appraising its business activities based also on a third axis, MOS indexes, in addition to the Business Administration axis and Management of Technology (MOT) axis. It is unusual and difficult to firmly establish SUSTAINABILITY as an appraisal axis of major business activities, instead of using it just as a term or for the purpose of social contribution, removed from the major business activities. The MCHC Report is admirable for frankly disclosing the Company’s challenge in this aspect.
The Report also systematically evaluates the business activities and in-house efforts (related to occupational health, safety and diversity in employment, and other matters) by Mitsubishi Chemical, Mitsubishi Plastics, Mitsubishi Tanabe Pharma and Mitsubishi Rayon based on the three sets of indexes. This makes the Report consistent and clear.
It is also interesting to find a brief history of the birth of MOS indexes in the Special Feature article. The article conveys the importance of leadership by top executives. I am sure other companies will also find this informative.
I would also like to comment on the statements related to corporate governance as a global company. The MCHC Group is, literally, a global enterprise, targeting an increase of its overseas sales ratio upward of 45% by 2015. As stated in the Report by the Group’s Managing Executive Officer, Chief Compliance Officer and General Manager of the Internal Control Office Noboru Tsuda, the importance of risk management rises in overseas businesses. We can therefore conclude that the MCHC Group’s decisions to establish wholly owned subsidiaries—Mitsubishi Chemical Holdings America, Inc. in the United States in November 2010 and Mitsubishi Chemical Holdings (Beijing) Co., Ltd. in China in January 2011—were wise in view of the target to establish and consolidate overseas management framework that give instruction and guidance related to the functions for representing the Group to outside parties, risk management and compliance systems, and internal audit organizations.
On the other hand, I still have a suggestion I want to put forward. It would be desirable to globalize MOS indexes as well. For example, the Report states that environmental load is to be reduced by 30% (in Japan) compared to fiscal 2005 to help reduce the burden on the planet. The target itself shows integrity, but there should also be a target that takes overseas situations into consideration.
Finally, I would like to mention that the data set contents have been expanded and improved. Specifically, data such as the ratio of female workers in each Group company were added. Despite this being a rather low-profile improvement, it holds great significance.

It has been quite some time since the Japanese economy began to slow. In the meantime, the values of the high growth period of the past have undergone great change, and the expectations and demands that stakeholders have of their companies have also changed significantly. Companies aiming to achieve sustainable growth in this environment need to step up their corporate social responsibility (CSR) activities centered on their corporate philosophy and respond effectively to the needs of society.
Mitsubishi Chemical Holdings Corporation (MCHC) positions CSR activities as one of the axes in its four-dimensional management of KAITEKI, such that they are part of its management direction. It has integrated them into its business using the numerical targets for its management activities. For instance, it has established MOS indexes with the aim of quantifying and visualizing the state of progress in CSR activities by incorporating them into APTSIS 15, its mid-term management plan. These initiatives deserve high praise. In particular, as MCHC describes the positioning of MOS indexes in its management and the background and concepts of the quantification in a detailed and easy-to-understand manner in its feature issue, it is possible to share the objectives of CSR activities with MCHC. The introduction of practical examples of KAITEKI encourages each business segment to act on CSR as they indicate what MCHC is doing and what it should do specifically.
However, to translate CSR activities into corporate value, it is important to view CSR activities from a more social perspective. It is expected that MCHC will always identify the social issues it should address from the standpoint of society (stakeholders), operating on its basic policies for social responsibility (Sustainability, Health, and Comfort) and that it will show specifically what outcomes have been produced through its CSR activities after clarifying its priorities when addressing the issues. Here, it is important to show primarily how the approaches MCHC has taken as CSR activities have contributed to society, rather than showing what MCHC has done. The purpose of CSR activities is to make a contribution to corporate value through the execution of a company’s basic policies for social responsibility.
Social issues cannot be resolved by companies alone. It is also necessary to create a framework for dealing with them, developing ties with nonprofit organizations (NPO) and other groups. Particularly in a society where values are diversified, the idea is not to work alone, but to join with all stakeholders through strong relationships that will enable companies to tailor approaches to diversified social values.
It is expected that MCHC will position its CSR activities so that they specifically embody the basic concepts of its Group philosophy and social responsibility, and will use them to enhance corporate value through its engagement in corporate activities from a social perspective. I also believe that by making all CSR activities consistently operating on the basic concepts of its Group philosophy and social responsibility, MCHC will be able to raise the motivation of employees, encourage their voluntary efforts, and incorporate CSR activities into its business.