GLORY CSR Report 2018 - Glory Global Solutions

GLORY CSR Report 2018 - Glory Global Solutions
Corporate Communications Department
Management Strategy Headquarters
1-3-1 Shimoteno, Himeji,
Hyogo 670-8567, Japan
Phone: +81-79-294-6317
Fax: +81-79-299-6292

                                      GLORY CSR Report 2018
GLORY CSR Report 2018 - Glory Global Solutions
Glory at a Glance                                                                                                                                                                                                                            Editorial Policy                                                      Table of Contents

            Corporate name : GLORY LTD.                                                           Stock listings                        : Tokyo Stock Exchange (1st Section)                                             The Glory CSR Report 2018 aims to inform a wide range of                                                 Message from the President                                                   3
            Founded                      : March 1918                                             Number of employees                   : 3,314 (Group: 9,516)                                                           stakeholders about the CSR initiatives that GLORY LTD. and
                                                                                                                                         Note: As of March 31, 2018                                                      Glory Group companies conducted during fiscal year 2017.
            Incorporated                 : November 1944
                                                                                                  Line of business                      : Development, manufacturing, sales, and
            Capital                      : ¥12,892,947,600                                                                                                                                                               This report contains information in line with the Standard
                                                                                                                                          maintenance of cash handling machines, data
                                                                                                                                          processing equipment, peripheral devices with data
                                                                                                                                                                                                                         Disclosures of the Sustainability Reporting Guidelines, Version
                                                                                                                                          processing equipment, vending machines,
                                                                                                                                                                                                                         4 set out by the Global Reporting Initiative (GRI). Glory has also
                                                                                                                                          automatic service equipment, etc.
                                                                                                                                                                                                                         completed identifying material issues in line with the relevant
                                                                                                                                                                                                                         processes as defined by the GRI.
                  Business Segments
                                                                                                                                                                                                                         The Special Report section showcases Glory’s coin-operated                                               Corporate Philosophy and
                                                                 Main Customers                                                          Main Products and Goods                                                         lockers, which were developed to meet new societal needs. The                                            Management Creed,
                                                                                                                                                                                                                         Glory CSR Report 2018 also covers major efforts in fiscal year                                           Glory’s Material Issues in CSR                                               5
                  Financial Market                                                                              Open teller systems                         Cash monitoring cabinets
                                                                                                                                                                                                                         2017 related to environmental protection, social action, and                                                                     Safe and Secure Society
                                                                                                                Coin and banknote recyclers                 Security storage systems
                                                        Financial institutions, OEM clients,                    for tellers                                 Key management systems
                                                                                                                                                                                                                         corporate governance. Further details can be found on the
                                                        and others in Japan                                     Coin recycling modules for ATMs             Banknote recycling modules                                   Glory website.
                                                                                                                Multifunctional banknote changers           for horse race ticket
                                                                                                                                                            vending machines                                                                                                                     Booklet content                               Philosophy
                                                                                                                                                                                                                                                                                                                                            Management Creed
                                                                                                                                                                                                                                                                                                                                             Corporate Action                   Medium-Term
                                                                                                                                                                                                                                                                                                                                                Guidelines                     Management Plan

                                                                                                                                                                                                                                                                                                                                        Employee Action Guidelines

                  Retail and Transportation             Supermarkets, department stores,
                                                                                                                                                                                                                                                                                                                                      Employee Standards of Behavior        Annual Management Plan

                  Market                                                                                        Coin and banknote recyclers                 Ticket vending machines                                                                                                                                                            (Glory Spirit)

                                                        cash-in-transit companies, railroad                     for cashiers                                Cigarette vending machines                                                                                                                                                         Mindset                            Action

                                                        companies, tobacco companies,                           Sales proceeds deposit machines             Medical payment kiosks
                                                        hospitals, local governments,                           Multifunctional banknote changers

                                                                                                                                                                                                                         Level of importance to stakeholders
                                                                                                                                                            RFID self-checkout systems
                                                                                                                Cash recyclers for gas stations             for cafeterias
                                                                                                                                                                                                                                                                                                                                  Major CSR Initiatives
                                                        general companies, and others
                                                        in Japan                                                Coin-operated lockers                       Ballot sorters for handwritten ballots                                                                                                                                in the Value Chain                                                           7

                  Amusement Market
                                                                                                                Card systems for pachinko parlors           Pachinko ball counters                                                                                                               Covers noteworthy initiatives
                                                                                                                Banknote conveyor systems                   for individual pachinko machines                                                                                                     conducted in fiscal year 2017.
                                                        Amusement halls (pachinko parlors)
                                                                                                                Pachinko prize dispensing                   Membership management systems
                                                        and others in Japan                                                                                 for pachinko parlors
                                                                                                                                                            Pachinko ball/token counters                                                                                                         Web content

                  Overseas Market                                                                               Banknote recyclers for tellers              Coin and banknote recyclers
                                                                                                                                                                                                                                                                  Level of importance to Glory
                                                        Financial institutions,                                                                             for cashiers                                                                                                                                                          Special Report
                                                                                                                Banknote sorters
                                                        cash-in-transit companies,                                                                          Sales proceeds deposit machines
                                                                                                                Banknote and check                                                                                                                                                                                                Changing with the Needs of the Times
                                                        retail stores, casinos, OEM clients,                    deposit modules for ATMs                    Coin wrappers
                                                        and others overseas
                                                                                                                                                                                                                                                                                                                                  Glory’s Coin-Operated Lockers                                                9
                                                                                                                Banknote counters
                                                                                                                                                                                                                                                                                                 Regular efforts not covered in
                                                                                                                                                                                                                                                                                                 the booklet are posted on our
                                                                                                                                                                                                                                                                                                 website, along with news and
                    Others                              Other than those above                                  Other than those above                                                                                                                                                           other detailed information.

                                                                                                                                                                                                                            Report Subjects
                                                                                                                                                                                                                         This report generally describes the efforts of GLORY LTD. It will
                                                                                                                                                                                                                         be explicitly stated if a particular item being reported concerns
                                                                                                                                                                                                                         a specific Glory Group company or another company. Moreover,
                                                                                                                                                                                                                         the report on environmental activities covers the ISO
                   Financial Data (Consolidated)                                                                                                                                                                         14001-certified offices of GLORY LTD. and Glory Group                                                    Governance                                                                 11
            Net Sales                                                         Operating Income                                                     Sales by Business Segment                                                                                                                                                      Quality Initiatives                                                        13
            (Billions of yen)
                                                                              (Billions of yen)
                                                                                                                                                                                                                            Reporting Period
                                                                                                                                                   Others                                            Financial Market
                                                                                                                                                   2.8 billion yen                                   53.9 billion yen    Fiscal year 2017 (April 1, 2017 to March 31, 2018)
                      218.6     222.3   226.9   222.5   227.3
                                                                                                                                                   (1.3%)                                            (23.7%)                                                                                                                      Human Resource Initiatives                                                 15
            200                                                               20
                                                                                                         20.5     20.3                                                                                                   (May include reporting of items occurring in or after April 2018.)
            100                                                               15
                                                                                                                                                                      consolidated                                          Publication Date                                                                                      Social Initiatives                                                         17
                                                                                                                                                                         sales                       Retail and          July 2018
            100                                                               10
                                                                                                                                                                          227.3                      Transportation
                                                                                                                                                                                                     Markets                                                                                                                      Environmental Initiatives                                                  19
                                                                                                                                                                          billion yen                43.2 billion yen
                                                                                                                                                                                                     (19.0%)                 Referenced Guidelines
             50                                                                5
                                                                                                                                                   Overseas                                                              Sustainability Reporting Guidelines, Version 4, Global Reporting
                                                                                                                                                   106.7 billion yen
                                                                                                                                                                                                                         Initiative (GRI)                                                                                         Stakeholder Dialogue                                                       21
                                                                                                                                                   (47.0%)                                            20.5 billion yen
              0                                                                0                                                                                                                      (9.0%)             2012 Environmental Reporting Guidelines, Ministry of the
                       2013     2014    2015    2016    2017    (FY)                    2013      2014   2015     2016    2017   (FY)              Note: Figures in parentheses indicate the percentage of sales.        Environment, Japan                                                                                       Third-Party Opinion                                                        22

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GLORY CSR Report 2018 - Glory Global Solutions
Message from the President

                                       Hirokazu Onoe
                                       President, GLORY LTD.

                As Glory enters its next 100 years,                                                                                                   • Various methods of payments: Extend solution portfolio to
                                                                                                                                                        processing and settlement of electronic payments and
                                                                                                                                                                                                                        philosophy. In order to share and permeate that philosophy,
                                                                                                                                                                                                                        we translated into eight languages and distributed to every
                                                                                                                                                        digital currencies                                              group employee the Guidelines of Glory handbook, which sets
                we will contribute to the creation                                                                                                    • Currency circulation management: Extend capabilities to         forth principles such as our corporate philosophy,
                                                                                                                                                        track and manage cash through its complete life cycle           management creed, and corporate action guidelines.
                of a safe and secure future.                                                                                                          • Automated society: Contribute to productivity in
                                                                                                                                                        multi-industry applications of robotics, which can work in
                                                                                                                                                                                                                        Furthermore, in 2014, we signed up to the United Nations
                                                                                                                                                                                                                        Global Compact because its 10 principles in the four areas of
                                                                                                                                                        harmony with human employees                                    human rights, labor, the environment, and anti-corruption
                                                                                    extendable time limits. We have established our standing as       • Personal identification and authentication: Develop             share the same values with our corporate action guidelines.
            Glory’s 100th Anniversary                                               a pioneer of cash handling machines.                                solutions to detect, authenticate, and protect personal
            In March 2018, thanks to your support, our company marked                                                                                   identity, enhancing trust and security in society               In September 2015, at a United Nations summit, sustainable
            the 100th anniversary of its foundation. We have come this              To arrive at where we are today, we have created various                                                                            developments goals (SDGs) were adopted and 17 goals were
            far thanks to the long-term support of our stakeholders, to             innovations within business fields related to currency, and we    In order to realize these four new business domains, we will      set. We have linked those goals to our group’s strengths so
            whom we offer our deepest gratitude. Our company was                    have expanded our market, but our roots remain the                further advance our current core technologies of                  that by implementing our business strategies we are also
            founded in 1918, with seven employees, as a repair factory              philosophy that we have maintained since our foundation, of       recognition/identification and mechatronics. We will also         working to solve social issues.
            for light-bulb manufacturing devices. Now, the Glory Group              “continuously striving to benefit people by creating products     work to provide products and solutions that meet customers’
            has about 9,500 employees, subsidiaries in more than 20                 that have never been seen before.” We have a long and             needs by fusing new technologies via the promotion of open        We will continue to earn the trust of our stakeholders and
            nations around the globe, and offers products and solutions             continuous heritage focused on the development of                 innovation, and through a flexible approach to changes in the     strive to be a corporate group contributing to the realization
            to meet the diverse needs of customers in over 100 countries.           innovative solutions that improve society. This is enshrined in   market environment.                                               of a sustainable society.
                                                                                    our corporate philosophy with the words “a striving spirit and
            Since our foundation, we have continued to strive to achieve            cooperative efforts.”                                             As the first step, in April 2018 we began a three-year                                                                 June 2018
            the technological innovation and superb manufacturing that                                                                                planning period with the initiation of our 2020 Medium-Term
            society has sought. Along the century-long path that we have                                                                              Management Plan. This plan sets aside a period of
            traveled, the cornerstone of our current growth was the
                                                                                    Determining Our Long-Term Vision 2028                             preparation for the creation of our long-term vision, and
            development of the first domestically produced coin counter,            In April 2018—with our focus on the next 100 years—we put         pushes forward initiatives aimed at creating new value. It
            and its provision to the Ministry of Finance’s Mint Bureau              together the ideal image of Glory 10 years from now and set       includes the three basic policies of building foundations for
            (now the Japan Mint) in 1950. Since then, we have created               forth the Long-Term Vision 2028, which states “We enable a        realizing sustainable business management, strengthening
            many products                                                           confident world.” Until now, within the business domain of        collaboration with various partners to solve social issues, and
            which were the first                                                    cash handling, the Glory Group has worked to create an            realizing higher productivity and robust corporate
            of their kind in                                                        environment in which society can use cash with peace of           constitution that directly generate outcome.
            Japan, such as coin                                                     mind. Going forward, as well as furthering that goal, we plan
            wrappers, coin                                                          to enter new fields of business. With the spirit we have
            sorters, cigarette                                                      inherited from our predecessors of taking on a challenge,
                                                                                                                                                      Toward the Creation of a Sustainable Society
            vending machines,                                                       and via the application of advanced technology that exceeds       The Glory Group conducts management based on our
            and coin-operated                                                       the boundaries of cash handling, we will work to create new       corporate philosophy, and we believe that the actions of each
            lockers with                                                            domains in the four business areas detailed below.                and every employee will lead to the realization of that
                                                       Japan’s first coin counter

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GLORY CSR Report 2018 - Glory Global Solutions
Corporate Philosophy and Management Creed                                                                                                                                   Glory’s Material Issues

                                                                                                                                                                                        Glory has identified its CSR-related material issues through the following process.
                                                                       We will contribute to the development of a more secure society
               Corporate Philosophy
                                                                       through a striving spirit and co-operative efforts.                                                                  Process for Identifying Material Issues
                                                                                                                                                                                        STEP 1                        Find and Extract CSR Issues                                                               In-House Consideration
                                                                   • Through a spirit of continuous development, we will provide products and
                                                                                                                                                                                            Based on international standards such as the Global Reporting Initiative (GRI)
                                                                     services our customers can rely on.                                                                                                                                                                                            Representatives of relevant Glory departments sorted out the
                                                                                                                                                                                                                                                                                                    issues and assessed their materiality.
                                                                                                                                                                                            guidelines and ISO 26000, the social impact in all stages of the value chain (planning,

                 Management Creed                                  • We will build a vigorous corporate group through respect for the individual                                            development, procurement, manufacturing, sales, maintenance, others) were
                                                                     and teamwork.                                                                                                          assessed, and CSR issues were found and extracted.

                                                                   • We will endeavor to act as responsible corporate citizens and co-exist
                                                                     harmoniously with society at large.
                                                                                                                                                                                        STEP 2 Assess the Materiality of CSR Issues from the Standpoint of Both Glory and Its Stakeholders
                                                                                                                                                                                            A questionnaire was administered in both the business and corporate departments to
                                                                                                                                                                                            assess materiality. Responders ranked the priority of CSR issues from the two
                                                                  2020 Medium-Term Management Plan                                                                                          standpoints of ‘materiality in businesses’ and ‘level of impact on stakeholders’.
                                                                                                                                                                                                                                                                                                                  Dialogue with Experts
                                                                             Basic Policy                                                                                                                                                                                                           Two dialogue sessions were held, each one with an outside
                                                                                                                                                                                                                                                                                                    expert: Junichi Mizuo, President of MIZUO Compliance &

                                                Policy 1                                              Policy 2                                   Policy 3
                                                                                                                                                                                        STEP 3                           Experts Assess Validity                                                    Governance Research Office, and; Seiichiro Shimamoto, a
                                                                                                                                                                                                                                                                                                    professor at Kyoto Bunkyo University. In these sessions, the
                                                                                                                                                                                                                                                                                                    two experts provided Glory with advice such as whether
                                                                                                                                                                                            Two outside experts assessed the validity of materiality. Based on these assessment
                            Existing Business                                                   New Business                           Management Base                                      results, a materiality map was created and issues were sorted out.
                                                                                                                                                                                                                                                                                                    there were any shortcomings in the assessed materiality,
                                                                                                                                                                                                                                                                                                    and how to pursue CSR that matches Glory’s characteristics.

                        Build foundations for                                                Strengthen collaboration                Realize higher productivity and
                         realizing sustainable                                               with various partners to                 robust corporate constitution
                        business management                                                     solve social issues                  that directly generate outcome                     STEP 4                         Identifying Material Issues

                                                                                             Promote new business                      Work-style and operational                           Based on the materiality map, 11 items considered material issues at Glory were
                        Overseas business
                                                                                                                                                                                            chosen and these were classified into five priority CSR themes. Following approval                      Junichi Mizuo                     Seiichiro Shimamoto
                        Further growth of financial                                          domains                                   reform to improve                                                                                                                                            President,                        Professor,
                                                                                                                                                                                            from management, these were identified as material issues.
                        market and acceleration of
                                                                                             Acquire new core technology               productivity                                                                                                                                                 MIZUO Compliance &
                                                                                                                                                                                                                                                                                                    Governance Research Office
                                                                                                                                                                                                                                                                                                                                      Faculty of Social Relations,
                                                                                                                                                                                                                                                                                                                                      Kyoto Bunkyo University
                        retail business
                                                                                             Proactive allocation of                   Organizational climate
                        Domestic business                                                                                              reform to realize open
                                                                                             management resources for
                        Promote solution proposals                                                                                     innovation
                                                                                             new business
                                                                                                                                                                                            Material Issues Identified at Glory
                                                                                                                                                                                           Category           Priority CSR Themes                               Material Issues                                       Fiscal Year 2018 Targets
                                                                                                                                                                                                                                              • Build a business model that contributes to the
                                                                                                                                                                                                                                                advancement of customers’ business and helps           • Build solutions using diverse data
                                                                                                                                                                                           Creating         New value creation                  them boost their operational efficiency

                                                                                                                                                                                          new value         through business                  • Aim to be a reliable partner to customers, and
                 Glory’s CSR Philosophy                                                                             CSR Promotion Framework                                                                                                     establish a scheme for periodically confirming         • Select model customers and periodically review
                                                                                                                                                                                                                                                progress and customer satisfaction

            Glory believes that CSR (corporate social responsibility)                                            CSR efforts in the Glory Group are led by the CSR                                                                                                                                     • Reduce energy consumption per employee by 1%
                                                                                                                                                                                                                                              • Reduce energy consumption per employee                   (base year: fiscal year 2010)
            is achieved by putting its corporate philosophy into                                                 Committee, which is chaired by the President and made
            practice. This means offering cash handling machines                                                 up of management-level employees. The committee
                                                                                                                                                                                        Environment Environmental                             • Reduce CO2 emissions from new products
                                                                                                                                                                                                                                                                                                       • Improve energy efficiency of newly developed products
            and other products and services of high social                                                       convenes twice a year, at which time it deliberates on the                         protection                                                                                           by at least 15% compared to previous models

            importance to respond to customers’ needs for                                                        basic direction and plans for CSR management and                                                                             • Carry out biodiversity preservation activities in
                                                                                                                                                                                                                                                                                                       • Carry out 100% of activities planned for this fiscal year
                                                                                                                                                                                                                                                cooperation with stakeholders
            efficiency and accuracy and thus contribute to the                                                   establishes policies for major annual CSR initiatives.
            realization of a safe and secure society.                                                                                                                                                                                                                                                  • Implement and verify new ways of working
                                                                                                                                                                                                                                              • Promote work-style reform
                                                                                                                                                                                                            Human resource                                                                             • Boost operational efficiency
                                                Safe and Secure Society
                                                                                                                         President                                                                          initiatives                       • Support and secure human resources essential to        • Offer job-level-specific training and support
                                                                                                                                                                                                                                                Glory’s business                                         candidates who can lead the company in the future
                                                                                                                                                                                                            Promotion of CSR                  • Conduct CSR-oriented procurement worldwide
                                                                                                                                                                                                                                                                                                       • Continue to use the CSR voluntary checklist, and
                                                                                                                                                                                                                                                                                                         work to improve assessment scores
                                     Corporate                            Corporate
                                                                                                                      CSR Committee
                                                                                                                                                                                                            in the supply chain                                                                        • Spread activities to overseas sites
                                     Philosophy                             Vision
                                  Management Creed                                                                                                Corporate Communications Department
                                                                                                                                                                                                                                                                                                       • Conduct activities in line with the Corporate
                                   Corporate Action                     Medium-Term                                                                Management Strategy Headquarters                                                           • Strengthen corporate governance
                                      Guidelines                       Management Plan
                                                                                                                                                                                                                                                                                                         Governance Guidelines
                              Employee Action Guidelines                                                           Department Managers
                            Employee Standards of Behavior
                                     (Glory Spirit)
                                                                    Annual Management Plan
                                                                                                                                                                                         Governance         Strengthening                     • Strengthen risk management activities and              • Conduct risk management from a global perspective and
                                                                                                                                                                                                            of governance                       communicate to Glory Group companies                     communicate activities to Glory Group companies
                                     Mindset                              Action                                                                                                                                                                                                                       • Conduct job-level-specific compliance education, and
                                                                                                                                                                                                                                              • Strengthen compliance management and
                                                                                                                        Employees                                                                                                               communicate to Glory Group companies                     strengthen collaboration with Glory Group companies
                      Corporate Philosophy Structure         Business Management Structure

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GLORY CSR Report 2018 - Glory Global Solutions
Major CSR Initiatives in the Value Chain
      These are the major initiatives that the Glory Group is carrying out for each stakeholder category
      in the value chain.
          Value Chain

                                                               Planning                                              Development                                                Procurement                                                 Manufacturing                                                        Sales                                                Maintenance

                                                   Glory’s mission is to continue to take on               Glory remains dedicated to developing                     Besides carrying out fair and open                         Under Glory’s optimized manufacturing                    Glory analyzes the exact needs of each                           Glory provides prompt, exacting, and
                                                   the challenge of developing products and                products that respond to the needs of                     purchasing and ensuring stable                             system, each of the company’s factories                  market and customer so that it can provide                       sincere service to earn the trust of
                                                   solutions that satisfy customer needs.                  customers from various countries and                      procurement, Glory makes CSR part of its                   around the world uses its own strengths to               high-value-added products and solutions                          customers and provide them with
                                                                                                           regions.                                                  entire supply chain.                                       deliver high-quality products in a timely                in a timely manner.                                              satisfaction and peace of mind.

                                                      Customers                                               Customers                                                 Customers                                                   Customers                                                Customers                                                       Customers
                                                   • Create new value and solutions                        • Develop products that match                             • Ensure quality and pursue                                • Ensure quality and reliable supply                     • Provide products that match                                    • Provide prompt, reliable
                                                   • Plan products that match customer                       customer needs in a timely manner                         appropriate, competitive pricing                         • Shorten lead-time                                        customer needs in a timely manner                                maintenance
          Major Initiatives for Each Stakeholder

                                                     needs                                                 • Ensure quality                                                                                                     • Boost cost competitiveness                             • Provide appropriate information on                             • Improve maintenance quality through
                                                                                                                                                                      Business partners                                                                                                    products and services                                            customer focus
                                                                                                           • Incorporate universal design
                                                                                                           • Develop products utilizing new                          • Promote CSR-oriented procurement                          Global environment                                      • Properly manage customer                                       • Plan services that match customer
                                                      Customers           Global environment                                                                           in unison with suppliers                                                                                            information and personal information                             needs
                                                   • Plan environmentally friendly                                                                                   • Strengthen partnerships with                             • Manufacture with an eye to saving                                                                                       • Properly manage customer
                                                     products                                                                                                          suppliers                                                  resources, recycling, and reusing                                                                                         information and personal information
                                                                                                              Customers            Global environment                                                                                                                                        Customers                Global environment
                                                                                                                                                                     • Respect human rights in the supply                        Local communities
                                                    Global environment                                     • Develop environmentally friendly
                                                                                                                                                                       chain                                                                                                             • Sell environmentally friendly
                                                                                                             products                                                                                                                                                                      products                                                        Global environment
                                                   • Map out the product life cycle                                                                                                                                             • Ensure safety in the vicinity of each
                                                                                                              Employees                                                                                                           plant                                                                                                                   • Switch to eco-cars
                                                      Employees                                                                                                       Global environment                                                                                                     Employees
                                                                                                                                                                                                                                    Employees                                                                                                             • Sell CFC-free cleaning goods
                                                                                                           • Promote a work-life balance                                                                                                                                                 • Promote a work-life balance
                                                   • Promote a work-life balance                                                                                     • Promote green procurement
                                                                                                           • Provide education to improve                                                                                       • Respect human rights and ensure
                                                                                                             employee skills                                         • Protect biodiversity
                                                                                                                                                                                                                                  occupational health and safety
                                                                                                                                                                                                                                                                                                                                                          • Promote a work-life balance
                                                                                                                                                                                                                                                                                                                                                          • Train employees based on
                                                                                                                                                                                                                                                                                                                                                            qualification systems

          Environmental Impact

                                                                                                                                                            Energy-induced CO2 emissions                                       t-CO2        (0.1% increase over previous fiscal year*)   Scope 1           Scope 2

                                                                                                                                                                              CO2 emissions from parts                                                                                             CO2 emissions from product usage
                                                                                                                                                                               and materials procured                                                                                                                                                        CO2 emissions from product disposal
                                                                                                                                                                                                                                                                                         185,388 t-CO
                                                                                                                                                                                                                                                                                                                                       5.0% increase
                                                                                                                                                                                                                                                                                                                          Scope 3,     over previous
                                                                                                                                                                                      Scope 3, Category 1                                                                                                            2   Category 11
                                                                                                                                                                                                                                                                                                                                       fiscal year*                       Scope 3, Category 12

                                                                                                                                                                          176,252 t-CO                                 2
                                                                                                                                                                                                                                                                                             CO2 emissions from transportation and shipping
                                                                                                                                                                                                                                                                                                                                                                  2,632 t-CO                           2
                                                                                                                                                                                                                                                                                            13,144 t-CO                   Scope 3,
                                                                                                                                                                                                                                                                                                                                       26.6% increase
                                                                                                                                                                                                                                                                                                                     2   Category 4    over previous         (26.5% increase over previous fiscal year*)
                                                                                                                                                                         (5.4% increase over previous fiscal year*)                                                                                                                    fiscal year*

                                                                                                               Aiming to provide products and                        Promoting CSR-oriented procurement                             Dedicated to constantly returning
                                                     Quickly responding to social change                        services that are easy to use                            in unison with our suppliers                                      to our foundations                                  Providing optimum solutions                                Aiming to improve customer satisfaction

                                                                            Kiyoaki                                                   Jyunichi                                                       Miho                                                      Aki                                                       Mizuki                                                           Ryota
                                                                            Kobayashi                                                 Ichikawa                                                       Kakinuma                                                  Morimoto                                                  Matsuoka                                                         Uehara
                                                                            Product Planning Department,                              Industrial Design Division,                                    Purchasing Procurement                                    Production Engineering                                    Retail Market Sales Planning                                     Field Service Planning Department,
                                                                            Product Management Division,                              Development Headquarters                                       Department,                                               Department 2,                                             Department 1,                                                    Customer Service Division,
                                                                            Marketing Management Office,                                                                                             Purchasing Division,                                      Himeji Factory,                                           Sales Planning Division,                                         Service Headquarters
                                                                            International Business                                                                                                   Production Headquarters                                   Production Headquarters                                   Domestic Business Headquarters

                                                   Amid globalization and the diversification              We regard essential usability as the key                  We procure the electronic parts—such as                    On a daily basis we work on creating the work            We oversee coin and banknote recyclers that                      Under the “no downtime” concept for our
                                                   of customers’ needs in line with changes in             focus of product design and aim to create                 motors and switches—that are used in coin and              manual that is the foundation of our manufacturing.      carry out cash management within stores, and                     products, we offer a monitoring service for
                                                   the social environment, we maintain a                   products that are easy for our customers                  banknote recyclers and other products that we              In order to manufacture products with quality            we conduct sales activities to customers                         open teller systems. As well as having
                                                   sense of speed as we work to respond to                 to use. We endeavor to offer ever-better                  offer worldwide. As well as working to ensure              stability, we include in the manual not only assembly    throughout the retail market in Japan. We work                   customers able to use our products with
                                                   those needs. We will continue to apply                  products by always adopting the point of                  the stable procurement of parts, we are                    procedures but also quality standards and knowhow.       to understand our customers’ business issues                     peace of mind, we will continue to plan
                                                   leading technology as we plan products                  view of the user, and flexibly adjusting our              communicating actively with our suppliers as               We aim to create a work manual that is easy to           and operational configurations and to offer them                 high-value-added services that help solve
                                                   that provide our customers with new value.              ideas and methods of approach.                            we together pursue CSR-oriented procurement.               understand for our employees in Japan and overseas.      optimum solutions in line with those needs.                      their problems.

                                                                                                                                                                                                                                                                                                                  *CO2 emission increases over the previous fiscal year are due to increases in production volume.

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GLORY CSR Report 2018 - Glory Global Solutions
    Report                                                                                                                                                                               Case
                                                                                                                                                                                                Convenience for Users,                                                         Case
                                                                                                                                                                                                                                                                                      Making Visits to Japan
                                                                                                                                                                                          2     Efficiency for Delivery Companies                                               3     More Comfortable and Enjoyable
            Changing with the Needs                                                                                                                                                      In Japan, the increase in online shopping is creating a                               A record number of foreign tourists—28,690,000—visited
            of the Times                                                               Glory’s coin-operated lockers meet the needs of                                                   serious shortage of employees for delivery companies.                                 Japan in 2017. And more are expected to visit in the run-up

            Glory’s                                                                    the increasing numbers of inbound tourists and the                                                Glory helps solve this problem with the development of a                              to the 2020 Olympic and Paralympic Games in Tokyo.
                                                                                                                                                                                         locker specifically for receiving delivered packages. These                           Glory’s terminal lockers offer service in Japanese, English,
                                                                                       continued growth of online shopping.                                                              lockers have been installed in a wide range of locations,                             Korean, simplified Chinese, and traditional Chinese. Other

            Coin-Operated                                                                                                                                                                including train stations and supermarkets. Online shoppers
                                                                                                                                                                                         can pick up their goods anytime, without having to worry
                                                                                                                                                                                         about what time the goods
                                                                                                                                                                                                                                                                               services that contribute to stress-free locker use include
                                                                                                                                                                                                                                                                               the ability to check the availability of lockers online via a
                                                                                                                                                                                                                                                                               cloud server.

            Lockers                                                                                                                                                                      will be delivered to their
                                                                                                                                                                                         homes or office. Delivery
                                                                                                                                                                                         companies enjoy greater
                                                                                                                                                                                         efficiency since there is no
                                                                                                                                                                                         need to return when
                                                                                                                                                                                         customers are not at the         Lockers for receiving deliveries, at                                                        The locker’s guidance screen is available
                                                                                                                                                                                         delivery address.                Sanyo-Himeji Station on the Sanyo Electric                                                  in five languages
                                                                                                                                                                                                                          Railway Line (Hyogo Prefecture)


              1      Keyless and Cashless                                                                                                                                                Case                                                                                  Case

                                                                                                                                                                                          4     Effective Use of Limited Space                                                  5     Helping Achieve a Work-Life Balance
             Glory was the first company in the industry to develop a
                                                                                                                                                                                         In February 2018, Glory developed control software that                               Lockers represent one way that companies are providing
             keyless locker that generates and reads QR codes. When
                                                                                                                                                                                         can be installed in baggage storage lockers already placed                            benefits to their employees. With Glory’s refrigerated
             users store their baggage in a locker, they get a receipt
                                                                                                                                                                                         in train stations so they can also be used for receiving                              lockers for receiving and storing fresh foods, company
             with a printed QR code. This is their locker key, which they
                                                                                                                                                                                         deliveries. This means people can use the lockers to either                           employees can order groceries online that are delivered
             swipe over the QR code reader to open the locker. An IC
                                                                                                                                                                                         store their baggage or to pick up delivered packages. The                             and stored at their place of work. To open the lockers, they
             card can also be used to do everything from paying for the
                                                                                                                                                                                         result is greater convenience                                                         simply input the password
             service to opening the locker door. Because users have
                                                                                                                                                                                         for locker users and greater                                                          sent by the online retailer.
             either a QR code receipt or an IC card to open the locker,
                                                                                                                                                                                         operational efficiency for the                                                        This lets people use their
             they needn’t worry about walking around with—or losing—a
                                                                                                                                                                                         train stations installing these                                                       time after work more
             key. This also eliminates the need for personnel to deal
                                                                                                                                                                                         lockers.                                                                              effectively since they no
             with replacing lost keys, exchanging keys, and handling
                                                                                                                                                                                                                                                                               longer need to go grocery
                                                                                               LTS-100 Series, the industry’s first locker using QR codes                                                                        Combination baggage storage/delivery
                                                                                                                                                                                                                                                                               shopping on the way home.       Refrigerated lockers for receiving and
                                                                                                                                                                                                                                 receiving lockers, at Sakado Station on the                                          storing fresh foods, installed in a company
                                                                                                                                                                                                                                 Tobu Railway Line (Saitama Prefecture)

             History of Glory’s Coin-Operated Lockers

                             First Made-in-Japan Coin-Operated
                             Locker with Extendable Time Limit                                 1970s
                                                                                                                   Expo ’70 Provides Impetus for
                                                                                                                   Spread of Coin-Operated Lockers                                       1990s
                                                                                                                                                                                                          Excellence in Safety,
                                                                                                                                                                                                          Convenience, and Design
                                                                                                                                                                                                                                                                               Today              The Journey Continues

             At the time, coin-operated lockers could only be                                  In 1970, a total of 531 Glory coin-operated lockers were installed                        Throughout the 1990s, Glory continued to develop lockers that met                     As a coin-operated locker pioneer, Glory has for over 50 years
             used for one day, and had to be cleared out                                       in Osaka during Expo ’70: in Shin-Osaka Station, Osaka Station,                           the changing requirements of the times. The company sought to                         been pursuing convenience for customers and improvements in
             manually for use by someone else the following                                    and Ibaraki Station on the Japanese National Railways (now JR).                           improve security and coin identification accuracy by equipping                        function and quality. There are currently more than 20,000 Glory
             day.                                                                              Compared to baggage check-in counters, they offered smoother                              coin-operated lockers with electronic locking systems that better                     lockers in the field, providing services for users in all types of
                                                                                               drop-off and pick-up of baggage, helping to alleviate crowding                            prevent theft, and coin-sorting functions that use electronic sensors.                locations including train stations, airports, leisure facilities,
             In 1965, Glory developed the first made-in-Japan                                  among tourists. This provided a need for the further rollout of                           Convenience was further improved by widening locker openings to                       supermarkets, and more. Whether it’s lockers for receiving
             coin-operated locker with an extendable time                                      coin-operated lockers,                                                                    make baggage insertion                                                                deliveries to meet the
             limit. The proprietor of the coin-operated locker                                 as installations spread                                                                   and removal easier, and                                                               demand of online
             needed only to re-set the extendable time limit                                   nationwide in locations                                                                   adopting time-usage-                                                                  shopping, Glory
             once a day at a certain time, and it could then be                                such as train stations,                                                                   based fee systems.                                                                    continues to meet
             used for 96 consecutive hours. This development                                   airports, golf clubs, and                                                                 Glory also developed                                                                  newly emerging needs
             validated the functionality and marketability of                                  amusement parks.                                                                          products with patterns                                                                by developing products
             terminal coin-operated lockers and greatly                                                                                                                                  on the doors to help                                                                  that offer a wealth of
             contributed to the advancement of coin-operated                                                                                                                             lockers match their                                                                   services to match the
             lockers as a whole.                                                                                                                                                         surroundings and                                                                      diverse lifestyles of
                                                                                                                                                                                         improve the aesthetics.                                                               customers.
                                                                  The first made-in-Japan                                        Coin-operated lockers installed in Shin-Osaka Station                               Lockers adorned with a tulip pattern                                                 Refrigerated lockers for receiving and storing fresh food,
                                                                  coin-operated locker                                                                                                                                                                                                                    at Life Central Square Nishimiyahara shop (Osaka Prefecture)
                                                                  with extendable time limit

9    GLORY CSR Report 2018                                                                                                                                                                                                                                                                                                                         GLORY CSR Report 2018   10
GLORY CSR Report 2018 - Glory Global Solutions
Governance                                                                                                                                                                                                                                                                             For details, please visit GLORY’s website.

                Based on its corporate philosophy, Glory is pursuing sound and efficient business
                management that earns the trust and support of all stakeholders.

                 Corporate Governance                                                                     analysis and evaluation related to the Board’s                                               Compliance
                                                                                                          effectiveness. In fiscal year 2017, based on past
             Glory’s corporate philosophy guides its efforts to                                           evaluation results, under a review of the “Rules of the                                    Glory has a Compliance Committee as one way to                                   In addition, Glory provides education to employees to
             continuously improve corporate value through sound and                                       Authority of Final Decision,” Glory conducted a transfer of                                maintain and improve its compliance framework. This                              thoroughly familiarize them with compliance. In fiscal
             efficient business management, so that the company can                                       authority in order to optimize management and ensure                                       committee—which is chaired by the President and which                            year 2017, Glory also held e-learning and group training
             exist in harmony with society and earn the trust and                                         that it conducts speedy decision-making.                                                   includes two outside experts (attorneys at law)—                                 sessions for group
             support of all stakeholders. None of this can be achieved                                                                                                                               deliberates on important compliance-related issues                               companies to further
             without a firm commitment to the continuing                                                  Glory’s basic policy on corporate governance is set out in                                 concerning the Glory Group. Glory also has in place four                         reinforce information
             improvement of corporate governance. Glory will                                              the Corporate Governance Guidelines.                                                       compliance helplines (including one outside helpline) in                         management and
             continue its efforts to strengthen the supervisory and                                                                                                                                  Japan. These helplines enable Glory to detect and correct                        harassment
             executive functions of management, accelerate                                                    Risk Management                                                                        problems at an early stage, while protecting those                               prevention.
             decision-making, ensure transparency and objectivity,                                                                                                                                   seeking consultations.
             and enhance compliance management.                                                           Glory has a Risk Management Committee, which is
                                                                                                          chaired by the President and which has the purpose of                                                                                                                                                   At a compliance training session

             Corporate Governance Framework                                                               maintaining and strengthening risk management for the
             Glory adopts an audit and supervisory board system. This                                     entire Glory Group. The committee regularly conducts
             means the company’s Board of Directors, which includes                                       risk assessments and determines the divisions and
             two outside directors, makes decisions on important                                          individuals responsible for each risk item. It works with                                             Message from an outside director
             matters and oversees business execution, while the Audit                                     these divisions and individuals to implement
             and Supervisory Board oversees the actions of the Board                                      precautionary measures against risks during normal                                                By keeping CSR in mind as we carry out core operations,
             of Directors. An executive officer system allows the                                         times and to secure and improve a system that can                                                 we can further enhance Glory’s raison d’etre.
             company to separate the management supervisory and                                           respond promptly in times of crisis.
             business executive functions, thereby enabling speedy                                                                                                                                                                     Outside Director                             we assess our governance to be functioning
             and efficient business administration. In addition,                                          In fiscal year 2017, as well as undertaking a review of the                                                                  Joji Iki                                     appropriately, but such demands are growing along
             committees such as the Nomination Advisory Committee                                         company’s risk management rules and risk evaluation                                                                                                                       with the times. Furthermore, because the common
                                                                                                                                                                                                                                       Previously served as Gas Turbine &
             and the Compensation Advisory Committee serve to boost                                       standards, each group company also completed an                                                                              Machinery Company president and              sense that forms the standard of governance varies
                                                                                                                                                                                                                                       representative director and vice president
             transparency and objectivity when making important                                           analysis and evaluation of its own operations, using those                                                                   at Kawasaki Heavy Industries, Ltd.           according to country and region, we must integrate
                                                                                                                                                                                                                                       June 2017, appointed outside director at     each nation’s laws and culture into Glory’s
             management decisions.                                                                        same standards. Through measures such as these, Glory                                                                        Glory
                                                                                                          has strengthened its group-wide risk management                                                                              Nomination Advisory Committee member         governance. In society now, if a problem occurs it
                                                                                                                                                                                                                                       Compensation Advisory Committee
             Furthermore, to maintain and improve the efficacy of its                                     structure.                                                                                                                   member                                       spreads instantly and often becomes a bigger issue
             Board of Directors, every year Glory conducts periodic                                                                                                                                                                                                                 than it really is. From the saying “problems arise at
                                                                                                                                                                                                            Offering objective support based on own                                 the edges,” even our group companies in Japan and
                                                                                                                                                                                                            experience as a manager and engineer                                    overseas must pay careful attention.

             Corporate Governance Framework (As of June 27, 2018)                                                                                                                                           At Glory, we feel that, as we head toward the 100th                     It is important to contribute to society via
                                                                                General Meeting of Shareholders                                                                                             anniversary of the company’s foundation, we are                         our core business
                                                                                                                                                                  Appointment/      Appointment/            entering a period of dramatic change. Drawing out
                                                                    Appointment/Removal                                                                             Removal           Removal
                                                                                                                                                                                                            the potential of our engineering and our personnel is                   In recent years there has been an increase in
                                                       Board of Directors                                                                                           Audit & Supervisory                     key to achieving sustainable growth, and our Board                      corporate initiatives in line with Sustainable
                                                                                                                                                                      Board members
                                    8 Directors including 2 Outside Directors (1-year term)                                                                                                                 of Directors conducts very active and meaningful                        Development Goals (SDGs) or Environmental, Social,
                                                                                                                                                    Operational   4 Corporate Auditors including
                                                                                                                                                                   2 Outside Corporate Auditors
                                                                          Representative Directors                                                                                 Cooperation              discussions on this topic. From a standpoint of not                     and Governance (ESG). I believe that we can make
                                                                             Examination/Reporting                                                                  Accounting Auditors
                                                                                                                                                                                                            participating in business execution, I regard being                     the greatest contribution to realizing a sustainable
                                                Examination      Nomination Advisory    Compensation Advisory                                       Accounting                                              able to share my opinion from an objective point of                     society via our most socially influential operations,
                                                                     Committee               Committee                                                                                                      view as my most important role. I am requesting the                     which is our core business. For Glory, its offering of
                                                                                                                                                                                                            deepening of Glory’s management strategy, such as                       accurate, easy-to-use products and services that
                                                                                                                Executive Officers

                         Compliance Committee                       Management Conference
                                                                  Directors, Corporate Auditors,
                                                                                                                                                                                                            the creation of new business and changes to                             contribute to improved production efficiency will
                                                                                                                                                                     Corporate Lawyers
                         Disclosure Committee                     Executive Officers, and others
                                                                                                                                        Internal                                                            business models. I want to help push forward the                        result in a contribution to society. I believe that Glory
                                                                                                                                          Audit       Advice/       Outside Consultants                     company’s initiatives by offering advice based on my                    can improve its social raison d’etre by pleasing
                     Risk Management Committee                    Business Promotion Conference                                        Department    Direction
                                                                                                                                     Audit                                                                  experience as a manager and an engineer.                                stakeholders and remaining conscious of CSR while
                                                                                                                                                                                                                                                                                    engaging in its core business.
                   4 compliance helplines
                                                                                                                                                                                                            Governance amid continued globalization
                    Development      Manufacturing              Sales           Maintenance          Administrative
                      divisions        divisions              divisions          divisions             divisions                                                                                            Social demands regarding corporate governance
                                                                                                                                                                                                            have become stricter in the last few years. At Glory
                                                        Group companies

11   GLORY CSR Report 2018                                                                                                                                                                                                                                                                                                                           GLORY CSR Report 2018   12
GLORY CSR Report 2018 - Glory Global Solutions
Quality Initiatives                                                                                                                                                                                                                                                       For details, please visit Glory’s website.
                                                                                                                                                                                                                                                      Quality policy:

                 Glory provides products and services in a timely manner to win the confidence and satisfaction of

                                                                                                                                                                           Next-Generation Manufacturing for
                                                 We will provide products and services in a timely manner to win                                                           the Creation of a Collaborative Environment
                         Quality Policy
                                                 the confidence and satisfaction of customers.
                                                                                                                                                                        As labor shortages have become an urgent social issue in                                      to flexibly respond to multi-product, variable-volume
                                                  1 By sensing advanced market needs, develop products that are                                                         Japan, expectations have grown that robots could be an                                        production and achieve further labor savings and quality
                        Three Priority              attractive to customers.                                                                                            effective solution. With the goal of applying at production                                   stability in a wide range of industries, including the fields of
                          Guidelines              2 Establish the quality of products at the earliest stage possible.                                                   sites outside the company the production technology and                                       food and cosmetics,
                                                                                                                                                                        knowhow that it has cultivated so far, in April 2017 Glory                                    thereby contributing
                                                  3 Place importance on customers’ first impression of quality and on
                                                                                                                                                                        began the ASROF*2 system integration business for the                                         to next-generation
                                                    after-sales services.
                                                                                                                                                                        practical use of collaborative robots.                                                        manufacturing.
                                                                                                                                                                        By offering a total solution from robotic line automation to
                                                                                                                                                                        development of peripheral equipment and operational
                  Providing Peace of Mind to Customers                                                                                                                  knowhow and after-sales service, Glory is creating a
                  Worldwide via Maintenance Services                                                                                                                    collaborative environment for robots and humans. It is able
                                                                                                                                                                                                                                                                      *2: ASROF: Automation
                                                                                                                                                                                                                                                                         Smart Robot for Future             Collaborative labor between humans and robots
              In order for its customers worldwide to be able to use its                     Annual Quality Meetings
              products with peace of mind, the Glory Group maintains a                     Maintenance quality managers from each region of the
              direct sales and direct maintenance network across 24                        world and members of the development division and quality
                                                                                                                                                                            Customer Case Study: Sanshu Seika Co. Ltd.
              countries outside of Japan, including the U.S, Europe, and                   assurance division meet to share information on their
              Asia. Currently, that network includes around 2,000                          maintenance activities and on the operational and quality                        For over 60 years, Sanshu Seika has been producing and selling unique rice crackers and pasta snacks using special ingredients and
              maintenance staff members and maintenance contracts                          conditions of products in the markets of each region. Glory                      traditional manufacturing methods. It has striven to maintain an easy working environment for its employees. In a joint development effort
                                                                                                                                                                            with Sanshu Seika, Glory installed ASROF into its line for packing its products into boxes.
              with customers for a total of more than 240,000 products.                    improves its product quality by feeding back the information
                                                                                           gained from maintenance calls.
              Glory receives inquiries from customers regarding issues
                                                                                                                                                                                        Background to the installation                                                           Results of the installation
              with its products or requests for repair via call centers set                Fostering Personnel Who Can Maintain Quality                                          Amid labor shortages, the company wanted to ensure                          The move allowed employees to devote their time to the work considered as
              up at each of its bases. When it is determined that a visit by                  Group Skill Training                                                               stable quality and improved productivity in its wrapping                    requiring human skills, such as the production process and product
                                                                                                                                                                                 process, which is the process that requires most labor.                     inspection. That led to safer, higher-quality product manufacturing.
              Glory maintenance staff is required, a staff member close to                 Aiming to improve the expertise and response skills of
                                                                                                                                                                                 The company wanted to use a humanoid robot with a                           Since the humanoid robot is programmed so that a simple operation can
              the customer’s                                                               technical staff, Glory conducts group skill training by region                        compact line layout that could adjust quickly and flexibly to               smoothly convert it to handle a different production item, it was able to
              location is quickly                                                          or country. The staff responsible for each product model                              multi-product, small-volume production.                                     efficiently perform multi-product, small-volume production.
              dispatched. Glory has                                                        train the technical staff in the products being offered in their
              put in place a thorough                                                      market. Glory is                                                                     ASROF’s duties
              support structure in                                                         enhancing the
              order to solve                                                               effectiveness of this
              customers’ problems                                                          training by having the
              as quickly as possible.                                                      trainees undergo
                                        Responding to a customer’s inquiry via telephone
                                        support                                            preparatory study via
                                                                                           an online education
                                                                                           system ahead of the
                  Initiatives to Improve Maintenance Quality                               training day.                                                                    Check the shape and weight of the container             Pack the crackers into the container                          Based on the total weight, check the content amount and number
              In order to provide high-quality maintenance services that                                                 An explanatory page from the online training                                                                                                                             of servings of crackers in the container. Forward to the next
                                                                                                                                                                                                                                                                                                  process only those that have successfully passed this phase.
              exceed the satisfaction of its customers, Glory employs a                      Technical Staff Cup
              variety of measures, including group skill training and joint                The Technical Staff Cup that Glory has been running in
              initiatives with each region of the world.                                   Japan for more than 20 years, Glory also now runs in the
                                                                                           North American region, the EMEA*1 region, and the Asia and                                                                 We believe that humanoid robots are extremely                    Our desire going forward is to improve versatility,
              Joint Initiatives with Each Region of the World                                                                                                                                                         effective for multi-product, small-volume                        with an eye to including artificial intelligence. If
                                                                                           China region. Technical staff from each region gather and
                 Senior Service Leadership Meetings                                        compete against each other by using the expertise they have                                                                production, where production efficiency can’t be                 we can enable programming changes and the
              Maintenance managers from each region of the world meet                      accumulated on a daily basis, increasing their motivation                                                                  increased by using dedicated machinery like mass                 adjustment of robot hand parts to suit package
              to share their initiatives and success stories regarding each                                                                                                                                           production can. Furthermore, a collaborative robot               shapes and production items onsite—even
                                                                                           and communication
              regional maintenance business, and also to share their                                                                                                                                                  can work close to humans without the need to                     where multiple humanoid robots are installed—
                                                                                           between them.
              progress in measures being undertaken on a global scale. In                                                                                                                                             provide safety barriers—this is a distinct                       production will be able to continue without
              order to provide maintenance services that meet the diverse
                                                                                           *1: EMEA: Europe,                                                                                                          advantage. Faced with chronic labor shortages,                   halting the line. That will lead to increased
                                                                                               the Middle East, Africa
                                                                                                                                                                                                                      improving productivity is now a key issue for small              customer satisfaction. We anticipate further
              needs of customers, Glory aims to improve the maintenance
                                                                                                                                                                                                                      to medium enterprises, and we hope that together                 development from Glory.
              quality of the entire Glory Group and boost the level of each                                                                                                 Shinichi Sainohira
                                                                                                                                                                                                                      with Glory, we can spread the use of ASROF
              of those operations.                                                                                                                                          Sanshu Seika Co. Ltd.                     beyond the borders of region and industry.

                                                                                                                         The Technical Staff Cup held
                                                                                                                         in the North American region

13   GLORY CSR Report 2018                                                                                                                                                                                                                                                                                                                                 GLORY CSR Report 2018   14
GLORY CSR Report 2018 - Glory Global Solutions
Human Resource Initiatives                                                                                                                                                                                                                  For details, please visit Glory’s website.

                Glory respects every employee as an individual and strives to create an enriching and
                pleasant work environment.

                 Promoting Diversity                                                                  Work-Life Balance                                           Fostering Human Resources                                              New Career-Building Initiatives
                                                                                                                                                                                                                                         Glory helps employees achieve their personal career plans by
             Glory aims to build a workplace where every employee,                                Glory has in place numerous initiatives aimed at             Fostering Globally Minded Human Resources                                 providing systems and measures that support the
             regardless of gender, nationality, sexual orientation, or                            promoting a work-life balance. These initiatives enable      Today, overseas sales account for approximately 47% of                    development of their capabilities and that further their careers.
             disability, can utilize his or her talents to the fullest.                           employees to match their job and work schedule to their      Glory Group consolidated net sales, and overseas
                                                                                                  lifestyle while maximizing their abilities and career        employees account for approximately 39% of all Group                         Employee Awareness Surveys
             Equal Opportunities for Women                                                        potential.                                                   employees. Given this group make-up, the company is                       In April 2017, Glory conducted a survey targeting its executive
             Since fiscal year 2011, Glory has been focusing on                                                                                                placing special emphasis on fostering human resources                     officers and employees, on topics such as work motivation,
             ensuring gender equality and delivering equal                                        Work-Life Balance Support Systems                            that can support international expansion. It is bringing                  awareness of compliance, and understanding and
             opportunities for female employees. In fiscal year 2016,                               Balancing Work and Parenthood                              this objective about through programs such as the                         implementation of Glory’s CSR and management plans. This
             Glory formulated an action plan based on Japan’s Act on                              Since April 2017, Glory has provided subsidies for           short-term overseas study program and the GUTS                            year’s survey revealed that many improvements have been
             the Promotion of Women’s Participation and Advancement                               parents working full-time at Glory sites (other than the     program.                                                                  made since the previous survey, including; feeling stuck in a
             in the Workplace, and has been creating a more inclusive                             Glory head office) to hire childcare services. The company                                                                             rut at work, feeling overwhelmed by the volume of work, and
             workplace ensuring there is more female representation.                              has also created an in-house daycare center called “G        Glory also provides as many opportunities as possible for                 the level of penetration of the corporate philosophy. On the
                                                                                                  Kids Home” for children of full-time Glory employees.        exchanges between employees in Japan and those at                         other hand, the survey revealed that the understanding of the
                                                                                                  Such measures support employees by placing an equal          overseas subsidiaries.                                                    management plan and putting it into action, feeling convinced
                 Action plan based on the Act on the Promotion of
                 Women’s Participation and Advancement in                                         importance on career development and parenthood.                                                                                       with the fairness of evaluation, and awareness of the future
                 the Workplace                                                                                                                                    Short-Term Overseas Study Program                                      prospect of the company was on the decline among general
                                                                                                     Balancing Work and Caregiving                             This program sends participants to language schools in                    employees, particularly those in lower ranking positions.
                             Increase 20% of new graduate hires in the next                       Glory also helps employees work with peace of mind           the U.S. or the U.K. for three months so that they can
                             three years to be female                                                                                                          acquire the language and business skills needed to do                     Taking these results into consideration, for fiscal year 2018,
                                                                                                  while caring for sick or elderly family members. Glory
                             Over the next five years, double the number of                       has improved and expanded its employee support system        business on a global stage. By exposing themselves to                     Glory will commit to the following actions: permeate the
                             female managers (i.e., those at the rank of                          to include extended periods for nursing care leave and       diverse ways of thinking, values, and cultures, employees                 corporate message company-wide; appropriate operation of
                             section manager or higher)                                                                                                        develop into                                                              the personnel system; and create an environment in which
                                                                                                  extended periods during which employees may reduce
                                                                                                  their daily working hours in order to look after a sick or   individuals with not                                                      employees, company-wide, can freely take on challenges.
                                                                                                  elderly family member.                                       only improved
             Employing People with Disabilities                                                                                                                language skills, but                                                         Career Training
             In 1999, GLORY Friendly Co., Ltd. was established to give                            Reducing Long Work Hours                                     also a global                                                             Glory holds level-specific career training for its employees.
             people with disabilities an opportunity to make a living and                         Glory strives to modify work processes and schedules in      perspective. In fiscal                                                    One of these is the Self-Inquiry Adventure Training, which
             contribute to society. Under the slogan “Foster a creative                           order to reduce constant bouts of long work hours. This      year 2017, four                                                           is held for employees when they first join Glory, on their
             working environment by valuing communication with one                                helps to bolster employees’ mental and physical              employees took part                                                       fourth year at the company, and when they turn 30 years
             another and fully demonstrating our skills,” employees                               well-being and maintain their motivation for work.           in the study program. Participants celebrate the completion of            old. This program allows them to envision a career plan
                                                                                                                                                                                        their study program
             conduct duties such as company janitorial work and                                   In an effort to impress upon employees the importance of                                                                               and to grow into competent personnel who can achieve
             landscaping, in-house                                                                working efficiently so as to avoid overtime, Glory has                                                                                 their career goals. In fiscal year 2017, a total of 187
             documentation and                                                                    instituted “no-overtime days” and “no-overtime weeks.”           GUTS Program                                                          employees took part in the program.
             mail delivery, and                                                                   And to encourage employees to go home on time, the           Glory has developed a program called GUTS (Glory Up
             waste disposal. Glory                                                                company has also put a limit on the number of overtime       Technique Shōshūdankaizen [“small-group reforms”]),                           Respecting Human Rights
             fully complies with all                                                              hours they can work each day.                                which aims to boost employees’ problem-solving abilities
             equal opportunity                                                                                                                                 and their capability to think and act for themselves by                   All employees must abide by Glory’s Corporate Action
             laws and never                                                                                                                                    taking on operational reforms. It also aims to create a                   Guidelines. These stipulate rules on respect for individuals,
             discriminates on the                                                                                                                              livelier work environment. GUTS is a world-wide initiative;               talent development, and workplace safety. They also clearly
                                       Participants take part in the first Friendly Skills
             grounds of disability.    Competition                                                                                                             it is also taken up at production group companies                         call for respect for other employees’ diversity, personalities,
                                                                                                                                                               including those overseas. In fiscal year 2017, there were                 individual differences, and—above all—human rights. To
                                                                                                                                                               a total of 340 action themes.                                             ensure that these efforts extend throughout the entire
                                                                                                                                                                                                                                         supply chain, the company has produced the Glory CSR
                                                         I recently had the opportunity to visit the first   develop the capabilities of each person and an    A company-wide GUTS conference is held annually at the                    Procurement Guidebook (for suppliers in Japan) and the
                                                         Friendly Skills Competition organized by Glory      environment where they can exercise their full    Glory head office. At this event, outstanding circles,                    Glory Supplier Code of Conduct (for overseas suppliers).
                                                         Friendly. I was truly happy to see the hard         potential while being given comprehensive         including those from                                                      These documents outline rules on respect for human rights
                                                         work and progress of graduates from my              support. That’s why we can send our
                                                                                                                                                               group companies are                                                       that all suppliers are urged to follow.
                                                         school, as they took on tasks such as cleaning      graduates to work at Glory Friendly with peace
                                                                                                                                                               selected to give
                                                         desks and floors.                                   of mind. Society is becoming ever more
                                                                                                             diversified, and we hope that Glory Friendly
                                                                                                                                                               presentations on their                                                    The Glory Group has signed and participates in the United
                   Satoshi Hosokawa                      One of our most important responsibilities is to    will remain a company that provides a place       achievements, and                                                         Nations Global Compact, which advocates universal
                   Career Guidance Manager,
                                                         secure employment for our graduates so that         where every employee can play an active role      best practices are                                                        principles covering the four areas of human rights, labor,
                   Hyogo Prefectural Himeji School for
                   Students and Children with            they can go out and make a living for               and coexist happily with one another.             shared                                                                    the environment, and anti-corruption. The Group will
                   Special Needs
                                                         themselves. Glory Friendly has programs to                                                            company-wide.                                                             continue to ensure respect for human rights is a
                                                                                                                                                                                        Employees from GLORY (PHILIPPINES) INC. give
                                                                                                                                                                                        a presentation at the company-wide GUTS
                                                                                                                                                                                                                                         cornerstone of its management.

15   GLORY CSR Report 2018                                                                                                                                                                                                                                                                               GLORY CSR Report 2018   16
GLORY CSR Report 2018 - Glory Global Solutions
Social Initiatives                                                                                                                                                                                                                                      For details, please visit Glory’s website.

                Glory will harmonize and advance the interests of the company and of society.
                As a good corporate citizen, it will also actively participate in social action programs.

                 Supporting the Promotion of Sports                                                                                                                           Other Contributions to Society
             Glory Sponsors Victorina Himeji Volleyball Team                                     Hands-on Science Classes                                                  Participating in Run for the Children                                     Protecting the Marine Environment
             Glory has signed a sponsorship agreement with Himeji                             In hands-on science classes held during the summer                           In November 2017, seven employees of Glory Global                         in the Philippines
             Victorina Co., Ltd., which manages the Victorina Himeji                          holidays, elementary school students build their own                         Solutions (Spain) S.A. took part in the Run for the Children              In October 2017, GLORY (PHILIPPINES), INC. donated “reef
             women’s volleyball team (general manager: Masayoshi                              science projects, experiencing firsthand the wonders of                      charity race. The event’s aim is to contribute to the                     buds” as its contribution to an ocean regeneration project
             Manabe, coach: Yoshie Takeshita). Based in Himeji, Hyogo                         science and in the process cultivating their creativity and                  advancement of research into intensive care and to                        in the municipality of Rosario in the province of Cavite.
             Prefecture, Victorina Himeji is Japan’s first professional                       unique powers of imagination. Glory employees take part                      promote healthy lifestyles. Proceeds gathered at this                     This artificial coral is made from low-impact material and
             women’s volleyball team.                                                         by helping the students with their projects.                                 event go towards supporting activities of a biomedical                    provides a habitat for sea organisms. Reef buds also
                                                                                                                                                                           research foundation at the Niño Jesús University                          contribute to the stabilization of the ocean’s pH balance,
             Besides playing in various volleyball tournaments, the                           In fiscal year 2017                                                          Children’s Hospital.                                                      helping prevent
             team promotes the sport in the community through                                 science classes, 200                                                                                                                                   degradation of the
             activities that include appearances on talk shows and                            students from grades                                                                                                                                   marine environment
             volleyball clinics for elementary and junior high school                         three to six took on the                                                                                                                               caused by increasing
             students. Glory strives to use sponsorship as a way to                           challenge of building                                                                                                                                  atmospheric CO2
             stimulate community-level sports and support the                                 eight-legged robots                                                                                                                                    concentrations.
             development of the next generation.                                              using a crank
                                                                                                                          Students build an                                                                                                                                            Employees who donated the reef buds
                                                                                              mechanism.                  eight-legged robot under
                                                                                                                          the guidance of a                                                                Employees who took part in Run for
             As a company founded in Himeji, Glory fully understands                                                      Glory employee                                                                   the Children
             Victorina Himeji’s vision—“From Himeji to the world”—                                                                                                                                                                                   Making Wood Block Puzzles from Sustainable Wood
                                                                                                                                          A completed eight-legged robot
             and will support the team in all its endeavors.                                                                                                               Volunteering in the Bollywood Farm Tour                                   With the goal of protecting the environment and
                                                                                                Children’s Theater                                                         In June 2017, five employees of Glory Global Solutions                    contributing to children’s education, Glory creates
                                                                                              The Children’s Theater project is held with the goal of                      (Singapore) Pte. Ltd. volunteered in the Bollywood                        children’s building blocks and puzzles from sustainable
                                                                                              enriching the aesthetic sensibilities of youngsters and                      Veggies Farm Tour, an event held for children living in                   wood (wood from forest thinning) with the support of the
                                                                                              planting in them the seeds of creativity.                                    facilities run by Canossaville Children and Community                     Lifestyle Research Institute of Forests NPO.
                                                                                                                                                                           Services in Singapore. The fun- and activity-filled day saw
                                                                                              In fiscal year 2017, a                                                       the children touring the Bollywood Veggies farm to see                    For fiscal year 2017, a total of 133 employees at nine
                                                                                              total of 2,900 elementary                                                    gardens of fruits, vegetables, and herbs, and learning                    local Glory offices in Japan, including those in Tokyo and
                                                                                              school students and their                                                    how produce is grown.                                                     Kyushu, took part. The participants used masking tape to
             Victorina Himeji team members pose
             for a photo at a press conference                                                parents were invited to                                                                                                                                color cubes cut from sustainable wood to make three
                                                                                              performances of the                                                                                                                                    sets of wood block
                                                                                              musical, Children in the                                                                                                                               puzzles (totaling 378
                                                                                              Storm, presented by the                                                                                                                                pieces). The completed
                                                                                                                          Children enjoying the musical
                                                  At the 1st Glory Cup Victorina elementary
                                                                                              Shiki Theater Company.                                                                                                                                 puzzles were donated to
                                                  school volleyball clinic                                                                                                                                                                           a daycare center in
                                                                                                                                                                                                                                                     Kumamoto, Kyushu.
                                                                                                                                                                                                           Children on the Bollywood Farm Tour
                                                                                                Hands-on Classes for Parents and Children
                                                                                              This program is held every spring and autumn with the                                                                                                                                    Donating the wooden puzzles to
                 Fostering the Next Generation                                                                                                                                                                                                                                         a daycare center in Kumamoto
                                                                                              goal of strengthening the bonds between parents and
             GLORY Foundation for Elementary School Students                                  children through a range of fun and exciting experiences.                    Hosting the Great Glory Bake Off
             In March 1995, Glory established the GLORY Foundation                                                                                                         Employees from Glory Global Solutions (Hong Kong) Ltd.                    Cosponsoring the World Heritage Himeji Castle
             for Elementary School Students with the goal of                                  In May 2017, a total of 80 children and parents, selected                    and Glory Group companies in three other Asian                            Marathon 2018
             supporting the sound development of young people.                                by a lottery, went to see the Shiki Theater Company’s                        countries held an in-house charity event called the Great                 Glory was a cosponsor of the World Heritage Himeji
             Through the foundation, the company conducts sports,                             performance of the musical Cats, followed by a backstage                     Glory Bake Off. Sweets such as cakes and muffins baked                    Castle Marathon 2018, held in February. Fifty Glory
             arts, and cultural activities that have included hands-on                        tour. Later that year, in November, 300 students and their                   by participants were sold to Glory employees, with the                    employees volunteered on race day to assist
             science classes, hands-on classes for parents and                                parents were invited to see a hot-air balloon at a local                     proceeds going to organizations helping victims of                        approximately 7,000 participants running the full
             children, and children’s theater. A cumulative total of                          elementary school. Participants learned how hot-air                          natural disasters throughout Asia and to local charity                    marathon.
             99,000 people have taken part in these activities since the                      balloons work and took turns boarding one anchored at                        groups.
             foundation was launched.                                                         the school.                                                                                                                                            Several Glory employees
                                                                                                                                                                                                                                                     also took part in the race
             The foundation also provides assistance to organizations                                                                                                                                                                                itself, wearing Glory
             that work towards the sound development of elementary                                                                                                                                                                                   t-shirts bearing the
             school students through activities in sports, science, and                                                                                                                                                                              100th anniversary logo
             culture.                                                                                                                                                                                                                                as they made a spirited
                                                                                                                                                                                                                                                     run to the finish line.
                                                                                                                          At the hot-air balloon event                                     Participants in the Great Glory Bake Off                                                    Glory employee volunteers cheering
                                                                                                                                                                                                                                                                                       on the runners

17   GLORY CSR Report 2018                                                                                                                                                                                                                                                                                           GLORY CSR Report 2018   18
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