2015 · special feature global csr activities 07 activities in europe and america 09 activities in...
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TOPCON GROUP CSR�Report
2 0 1 5
TOPCON GROUP CSR�Report
2 0 1 5
（%）
（FY）20142010 2011 2012 2013
160
14.8
17
－3.3
20
－10.652
1.3117
11.7
Operating Income ROE
0
50
100
150
200
－20
－10
0
10
20（100 million yen）
－200
－100
0
100
200
300
500
600
400
Net Sales128.6
billion yenPOC587POC587
S I C339S I C339
ECC412ECC412
Others66
Others66Eliminations &
Corporate items －118
Eliminations & Corporate items
－118
POC：Positioning CompanyS I C：Smart Infrastructure CompanyECC：Eye Care Company
（100 million yen）Japan 309
NorthAmerica
320Europe 311
Asia &Oceania139
China 78
Others 125
（100 million yen）Less than 100 million yen omission
Company Overview
Financial Information
AMERICA15 companies（955 employees）
EUROPE22 companies（824 employees）
ASIA & OCEANIA16 companies
（Including 1 company in Middle East）（345 employees）
JAPAN9 companies
（1,528 employees）
CHINA4 companies
（496 employees）
http://global.topcon.com/about/profile/（Corporate�Profile） http://global.topcon.com/invest/library/finance/（Financial�Results） http://www.topcon.co.jp/en/corporate/outline/（Business�Outline,�Key�Strategy）
Consolidated Sales Operating Income, Return on Equity Sales by Region
TOPCON GROUP
Joining Forces with Our Stakeholders
■ Date of Publication June 2015 （Previous issue: June 2014）
■Guidelines Used as ReferencesISO26000�“Guidance�on�social�responsibility”Global�Reporting�Initiative�（GRI）�G4�GuidelinesEnvironment�Reporting�Guidelines�2012�from�the�Ministry�of�the�Environment�of�Japan
Note: We selected easy-to-read colors and character fonts for those who have problems in color recognition.
Editorial Policy:About the Disclosure of Our CSR-Related Information
TOPCON will appropriately disclose information to shareholders in a timely manner, work to build a relationship of trust with them, and continually strive to improve our corporate value.
As�it� is� indicated� in“TOPCON�WAY”�and�Topcon�Global�Code�of�Conduct,�TOPCON�Group�makes�every�effort�to�cultivate�a�relationship�of�trust�with�our�shareholders�and�other�stakeholders�by�disclosing�appropriate�and�timely�in-formation�in�accordance�with�laws�and�regulations�stipulat-ed�by�the�stock�exchange.
● �In�April�2011,�The�Management�Vision,�Management�Policy�and�Business�Conduct�Guidelines�were� integrated�and�rearranged�into�the�“TOPCON�WAY”,�a�newly-defined�fundamental�principle�of�TOPCON�Group.
http://www.topcon.co.jp/en/corporate/philosophy/ （“TOPCON�WAY”）
●�This�CSR�Report�2015�and�previous�CSR�reports� in�PDF�format,�as�well�as�additional�environment-related� information�not�cov-ered� in�the�CSR�reports,�Topcon�Global�Code�of�Conduct�and�CSR�Policy�are�available�on�the�Social�and�Environmental�Activi-ties�（CSR）�page�of�our�website.
http://global.topcon.com/csr/ （CSR）
http://global.topcon.com/csr/code/index.html （Topcon�Global�Code�of�Conduct）
http://global.topcon.com/csr/policy/index.html （Major�policies�of�CSR）
●�The�Investor�Relations�page�of�our�website�provides�information�about�stocks�financial�performance�and�our�products.
http://global.topcon.com/invest/ （Investor�Relations）
TOPCON�IR�website�has�received�a�good�reputation�by�multiple�external�evaluation�institutes�as�below.
01 Joining Forces with Our Stakeholders
02 Company Overview / Financial Information
03 Message from the President04 TOPCON WAY
CSR�Mind
04 Relationship between Stake-holders and TOPCON GROUP
05 The Targets and Achievements of CSR
CSR�Activity�Report
17 Communication with Employees, Education for Risk Management
17 Working Hours, Leave System and Job-related Accidents
19 UNGC-related Activities
19 TOPCON GROUP Environmental Vision 2020
20 Environmental Impact
21 Efforts Related to Environmental Impact Reduction
21 “ISO 14001” audit in TOPCON Group
22 Third-Party Opinion
CSR�Management�Report11 Corporate Governance
12 Internal Control System -Topcon Global Code of Conduct-
13 Compliance Activities
13 Strengthening Global Export Control System
14 Information Security14 Personal Information Protection15 Quality Improvement Activities
15 Acquisition of ISO 9001 Certification
16 Joint Activities with Procurement Partners
Special Feature Global�CSR�Activities07� �Activities in Europe and America 09� Activities in Asia
トプコングループ CSR報告書
2 0 1 5C O N T E N T S
TOPCON Group conveys information about cor-porate social responsibilities （CSR） to all stake-holders since the issuance of an environment report in 2001.Since 2006, we have newly issued a CSR report including information on sociality to tell stake-holders about social and environmental activities of TOPCON Group.Continuing from CSR Report 2014, this report, the tenth edition, features global social contribu-tion activities based on TOPCON WAY.With the continued expansion of our business activities globally, as it becomes increasingly im-portant for all employees to move cooperatively in the same direction, we have revised our Code of Business Conduct with the aim of bringing clarity to our concept of values and commitment based on the idea of the TOPCON WAY （see page 12）. Additionally, we made efforts to nur-ture Topconians by further strengthening internal communication and education.This edition runs stories from the perspective of TOPCON WAY.As a participant in the UN Global Compact （GC） since 2007, TOPCON Group is required to pres-ent an annual report, “Communication on Prog-ress （COP）,” which describes the progress on GC ten principles （in the areas of human rights, la-bor, the environment and anti- corruption, as de-tailed on page 19）. CSR Report 2015 is designed to serve as a COP report.
■Corporate nameTOPCON CORPORATION
■EstablishedSeptember 1,1932
■Location of the head office75-1, Hasunuma-cho, Itabashi-ku, Tokyo
■President & CEOSatoshi Hirano
■Capital16,638 million yen （as of March 31,2015）
■Consolidated subsidiaries8 domestic and 57 overseas companies （as of March 31,2015）
■Number of employees4,148 （consolidated; as of March 31,2015）
■BusinessSmart Infrastructure （Surveying instruments, 3D measurement, GIS, Mobile mapping system）, Positioning （GPS, Machine control system, Precision ag-riculture）, Eye Care （Ophthalmic instruments, Optometric instruments）
■Major international CSR-related charters TOPCON supportsUnited Nations Global Compact
TOPCON GROUP CSR Report 2 0 1 501 02
Topcon�studies�the�possibilities�of�“light,”�creates�new�values�toward�the�future,�and�contributes�to�build�a�rich�human�society.
Topcon�will�maintain�a�proactive�and�responsive�attitude�by�foreseeing�any�changes�and�place�the�utmost�priority�on�compliance�under�all�circumstances,�thereby�contin-ually�striving�to�be�a�trustworthy�partner�to�all�stakeholders.
Topcon�will�do�its�utmost�to�improve�quality�in�all�stages�from�development�and�de-sign�to�manufacturing,�sales�and�service;�supply�products�of�the�highest�quality,�and�develop�our�customers’�businesses.
Topcon�will�build�relationships�of�mutual�trust�and�partnership�with�sales�agents�and�other�business�partners,�and�mutually�develop�business�through� information�sharing�and�close�cooperation.
Topcon�will� implement�two-way�communication�with�employees,�and�will� respect�diverse�individualities,�values,�and�the�spirit�of�creation�and�innovation,�and�maximize�the�employees’�skills.
Topcon,�as�a�member�of�the�global�and�local�community,�will� respect�global�stan-dards�concerning�human�rights,�the�environment,�labor�standards,�and�anti-corruption�measures,�and�contribute�to�building�sustainable�markets.
Topcon�will�appropriately�disclose� information�to�shareholders� in�a�timely�manner,�work�to�build�a�relationship�of�trust�with�them,�and�continually�strive�to�improve�our�corporate�value.
TOPCON WAY
http://www.topcon.co.jp/en/corporate/philosophy/（「TOPCON�WAY」）
● �The�“TOPCON WAY”�defines�a�set�of�common�values,�and�standard�of�action�that�all�executives�and�employees�of�TOPCON�Group�share�beyond�na-tional�borders�and�cultural�difference.
● �Clause�1�defines�the�management�principle;�Clause�2�clarifies�the�existence�condition;�and�Clauses�3�to�7�declare�our�relationships�with�our�stakeholders.● �The�word�“light”�in�Clause�1�refers�to�a�wide�range�of�our�technologies�in�the�areas�of�radio�waves,�infrared�rays,�visible�light�and�ultraviolet�rays.
Environmentalprotection,plant tours, andlinkage for local revitalization
Providing productsand services
Observing laws andregulations
Information disclosure,dividend distribution,governance, etc.
Third-party opinions,cooperative works
Specifying materialprocurement
policies andpromoting SCM
Skill development,fair evaluation,safety, health, etc.
Global &Local
community
Global &Local
communityEmployeesEmployees
Business PartnersBusiness Partners
Shareholders&
investors
Shareholders&
investors
NPOs&
citizen groups
NPOs&
citizen groups
Consumers&
customers
Consumers&
customersGovernmental
authoritiesGovernmental
authoritiesExhibitions,
academic conferences,publications,call centers
Exhibitions,academic conferences,
publications,call centers Legal documents
Support for environmentaladministration
Legal documentsSupport for environmentaladministration
IR Public RelationsIR Public Relations
Support foractivities,informationexchanges
Support foractivities,informationexchanges
CSR INFO-LINKTOPCON Code ofBusiness Conduct
CSR INFO-LINKTOPCON Code ofBusiness Conduct
Support forlocal eventsSupport forlocal events
RoHScomplianceassurancesystems
RoHScomplianceassurancesystems
TOPCONGROUPTOPCONGROUP
Based�on�the�basic�policy� for�CSR,�TOPCON�Group�offers�products�and�services�that�will�help�address�social�challenges.�At�the�same�time,�TOPCON�Group�attaches�great�importance�to�communications�with� its�stakeholders�and�endeavors�to�make�social�contributions�through�its�business�activities.
In addition to the CSR reports and our websites, TOPCON Group uti-lizes various channels of communication, as described above.
To be a global top companyEarnings for FY 2014 resulted in our highest levels ever for net sales and operating income.This performance is the result of our ongoing growth strate-gy beginning to take root.Group-wide, we are on a trajectory for solid growth and each company achieved increased income. To enhance new business and achieve profitable and sustainable growth founded in creativity, We have embraced the slogan “Cre-ativity and Growth” as well aim to become a true top-ranked global company.We also have three pillars of business strategies including enhancement of new businesses and strengthening of core businesses, launch of disruptive, strategic products which bring outstanding growth onto the market, and utilization of global human resources. We are striving to further enhance corporate value toward FY2015 target of ROE 20%.
Social contribution based on TOPCON WAYIn April 2011, we defined TOPCON WAY, the most im-portant value to create the future of TOPCON Group and declared that TOPCON Group will contribute to the human society for many years to come through pursuing the possi-bilities of “light,” our core technology, which covers a wide wavelength range, developing Time-to-Market No.1 （TM-1） products which meet potential, unnoticed needs of custom-ers, and creating novel value.As one of the features for our global business expansion, we employ our worldwide perspectives to appoint the right person in the right place in a timely manner so as to recruit global talent extensively regardless of the race and gender. Our overseas sales have exceeded 75% and over 60% of all employees have nationalities other than Japanese. The TOPCON WAY has spread throughout the Group as the concept of values, which all employees can share beyond the boundaries of nationalities, race and gender.
In addition, our core business domain ranges from eye care products covering prevention to treatment, particularly in the fields of examination and diagnosis, IT Construction systems using GNSS （GPS） and IT precision agriculture products civil engineering, to the social infrastructure devel-opment with a strong basis in surveying instruments. In this way, “Health Care, Agriculture, Infrastructure” is in close contact with our lives and essential for our lives, we are striving to contribute to human society in the entire business domain throughout our products and services.
With a spirit of Global Compact as a basisTOPCON Group assented to the purports of the UN Global Compact and, since 2007, has made positive efforts to in-corporate the ten principles in the areas of“ human rights,”
“the environment,”“labor” and “anti-corruption” into the TOPCON WAY, group strategies, corporate culture, day-to-day operations and a basis for defining “Topconian.”Based on a corporate philosophy of co-existing with society, the Topcon Group is committed to global environmental solutions, promotion of CSR activities, which includes con-tributing to society, the establishment of corporate gover-nance, and compliance activities.The Topcon Group is committed to being worthy of the trust shown by our stakeholders, including our shareholders and investors. Our continuous goal is to achieve profitability and sustainable growth. In closing, we ask for your ongoing support and guidance of our stakeholders.
Relationship betweenStakeholders and TOPCON GROUP Basic policy for CSR
Message from the President
TOPCON will locate CSR activities in the center of business and work on it intentionally in order to build, share and implement the sense of values and standards suitable for global enterprise.
TOPCON will, to the extent of our influence, sup-port and implement the rules and regulations that are globally approved regarding Human Rights, Labor Standards, Environment and/or Anti-Corrup-tion as declared in the UN Global Compact.
TOPCON will make a social contribution voluntari-ly and actively through developments, production, sales and services of useful products.
TOPCON will promote an environmental manage-ment through the creation of environmentally-con-scious business process and through providing with environmentally-conscious products and ser-vices.
TOPCON will strive to establish CSR activities in every officer and employee’s daily work and to in-filtrate and establish them on a global basis within the entire TOPCON Group.
TOPCON will acquire understanding and earn the trust of all the stakeholders of TOPCON group companies by providing with information actively.
123456Satoshi Hirano
President & CEO
03 04
CSR�Mind Topcon studies the possibilities of “light,” creates new values to-ward the future, and contributes to build a rich human society.
Items Key Goals and Plans for FY2014 Key Achievements in FY2014 * Key Goals and Plans for FY2015Comparison with GC Ten Principles
Corporate Governance
● �Disseminating�the�Corporate�Governance�Principles● �Holding�seminars�on�the�Corporate�Governance�Principles�and�CSR�education�program
● �Provided�training�for�managers�according�to�plan● �Provided�seminars�to�TOPCON�group�companies�according�to�plan ○
●�Disseminating�the�Corporate�Governance�Principles（Continued）● �Holding�seminars�on�the�Corporate�Governance�Principles�and�CSR�education�program
Principle�1�to�10
● �Disseminate�the�group�governance ● �Adopted�in�domestic�and�overseas�group�companies�as�planned ● �Disseminate�the�group�governance
Risk Compliance
● �Promote�BCP�in�group�companies● �Review�and�expand�emergency�stockpiles
● �Reviewed�BCP�on�the�assumption�that�earthquake�may�occur�be-neath�the�company�sites
● �Increased�stockpiles�of�emergency�supplies�（food,�beverage,�porta-ble�toilets,�blankets,�etc.）�and�provided�satellite�phones
△
●�Promote�BCP�in�group�companies● �Review�and�expand�emergency�stockpiles
Principle�1,�6● �Employment�rate�of�persons�with�disabilities:�2.0%�（complying�
with�legal�requirements）● �Employment�rate�of�persons�with�disabilities:�1.73%�（short�by�a�person）
● �Employment�rate�of�persons�with�disabilities:�2.0%�（complying�with�legal�requirements）
● �Holding�topic-by-topic�compliance�seminars ● �Held�topic-by-topic�compliance�seminars�with�updated�materials● �Including�training�at�overseas�group�companies�as�planned
● �Holding�topic-by-topic�compliance�seminars
Responsibilities to Customers
● �Enhance�design�review�to�improve�quality�of�new�products ● �Conducted�risk�analysis�and�enhanced�design�review�to�shorten�development�times�and�improve�quality
● �Promoted�awareness�of�prioritizing�the�quality�through�the�Technol-ogy/Quality�Month�and�other�quality�forums
○
●�Enhance�design�review�to�improve�quality�of�new�products
Principle�1
● �Enhance�change-point�control�to�improve�product�quality ● �Enhance�change-point�control�to�improve�product�quality
● �Enhance�the�internal�audit�system�to�strengthen�an�ability�to�iden-tify�true�cause
● �Internal�audit�carried�out�on�the�main�group�13�companies ● �Enhance�the�internal�audit�system�to�strengthen�an�ability�to�iden-tify�true�cause
● �Promote�to�control�customer�complaints�information�between�group�companies�on�a�global�basis
● �Speeded�up�the�feedback�of�quality�information�between�group�companies�on�a�global�basis
● �Promote�to�control�customer�complaints�information�between�group�companies�on�a�global�basis
Responsibilities to Business Partners
● �Ensure�a�new�guideline�is�communicated�to�and�understood�by�suppliers
● �Through�a�management�policy�briefing,�the�well-known�thorough�new�guidelines ○ ●�Ensure�a�new�guideline�is�communicated�to�and�understood�by�
suppliersPrinciple�1,�2
Responsibilities to Employees
● �Improvement�of�employee�satisfaction ● �Implementation�of�communication�activation�measures,�improve-ment�of�company�cafeteria
○●�Further�improvement�of�the�employee�satisfaction
Principle�2,�3● �Further�improve�work�environment ● �Disseminated�the�important�items�related�to�health�and�safety ● �Further�improve�work�environment
● �Conduct�Topconian�training�in�group�companies�around�the�world ● �Conducted�seminars�to�develop�global�Human�Resorces ● �Conduct�Topconian�training�in�group�companies�around�the�world
Responsibilities to International and Local Communities
● �Providing�environmentally�conscious�and�resource-saving�prod-ucts,�and�products�and�services�useful�for�improving�medical�care,�health�care�and�life�in�general（Continued）
● �Provided�products�that�would�help�address�social�issues�（Energy�saving,�Reduce�environmental�impact,�Aging�problem�etc.）
○
●�Providing�environmentally�conscious�and�resource-saving�prod-ucts,�and�products�and�services�useful�for�improving�medical�care,�health�care�and�life�in�general（Continued）
Principle�1,�7,�8,�9
● �Make�suggestions�for�new�volunteer�activities�and�carry�out�them ● �Conducted�as�planned ● �Make�suggestions�for�new�volunteer�activities�and�carry�out�them● �Offer�more�effective�assistance�to�medical�and�academic�institutes ● �Conducted�as�planned ● �Offer�more�effective�assistance�to�medical�and�academic�institutes
Enforcing Environment
Management System
● �Consider�the�implementation�of�field�audit ● �Conducted�the�document�based�audit�at�6�group�companies�having�factories�facility�and�many�employees ○
●�Consider�the�implementation�of�field�audit
Providing Environmentally Conscious Products and Services
● �Achieve�a�higher�level�than�93.6%● �Confirmation�of�environmental�conservation�effect�of��the�IT�Con-struction
● �Provided�environmentally�conscious�products�93.7%�of�sales�（Target�achievement）
● �Reduction�of�excavation�of�contaminated�soil�（30%�reduction） ○●�Aim�to�maintain�and�improve�sales�ratio（more�than�90.0%）● �Promotion�of�environmental�protection�by�the�IT�Construction
Establishing Environmentally Conscience
Business Processes
● �Implementation�of�measures�against�global�warming�（Reduction�in�CO2�emissions）�12.0%�reduction�from�the�previous�year�（to�com-ply�with�Tokyo�metropolitan�ordinance
● �34.3%�reduction�（compared�to�the�base�year）
○
●�Implementation�of�measures�against�global�warming�（Reduction�in�CO2�emissions）�15.0%�reduction�from�the�previous�year�（to�com-ply�with�Tokyo�metropolitan�ordinance
● �Effective�use�of�resources�Continuing�zero-emission�efforts�（Less�than�the�previous�fiscal�year）
● �Continuing�zero-emission�efforts（Decrease�in�emissions;5%） ● �Effective�use�of�resources�Continuing�zero-emission�efforts�（Less�than�the�previous�fiscal�year）
● �Management�of�chemical�substances�（Using�less�chemical�substances�than�10%）
● �Use�of�organic�solvents:�25%�reduction（1,345kg） ● �Hold�the�amount�of�use�below�the�level�of�FY2014�targets
Promoting Environmental Communication
● �Strengthening�of�cooperation�with�governmental�authorities�and�local�residents
● �Carried�out�community�cooperation�activities�according�to�plan○
●�Strengthening�of�cooperation�with�governmental�authorities�and�local�residents�（Continued）
Responsibilities to Shareholders and Investors
● �Strengthen�of�providing�information�to�stockholders�and�investors● �Maintaining�external�evaluations�and�increasing�analyst�coverage
● �Improved�in�Web�content（Winning�a�plurality�of�website�evaluation�organization）
● �Increase�in�the�number�of�analyst�coverage�（3⇒4）○
●�Strengthen�of�providing�information�to�stockholders�and�investors● �Maintaining�external�evaluations�and�increasing�analyst�coverage
Principle�1
Communication
● �Issuing�TOPCON�GROUP�CSR�Report�on�planned ● �Posted�to�the�web�site�in�June�（Japanese-English）
○
●�Issuing�TOPCON�GROUP�CSR�Report�on�planned● �Strengthening�of�information�dissemination�by�reviewing�CSR�Re-port�contents
● �Published�as�appropriate ● �CSR�Report�contents�benchmark�of�other�companies
● �Reviewing�the�working�groups�to�join ● �Participated�in�the�GC-JN�working�group ● �Conduct�benchmark�activities�through�participation�in�working�groups
● �Posting�corporate�information�on�the�website�in�a�timely�fashion ● �Disclosed�corporate�information�in�a�timely�fashion ● �Posting�corporate�information�on�the�website�in�a�timely�fashion�（continued）
● �Promote�more�effective�social�contribution�activities�including�review�of�partners
● �Cooperated�with�NPOs�specialized�in�social�contributions ● �Promote�more�effective�social�contribution�activities�including�review�of�partners
* : Legend in the Self-Assessment column: Of the three marks used, basically, ○ means “the target is 100% met”; △ means “the target is partly not met, or there is room for improvement”; and × means “the target is not met.”
■ CSR�Reports�published�since�FY2010�outline�major�targets,�achievements�and�the�next�year’s�plan�of�CSR�ac-tivities�by�TOPCON�Group.�Since�the�CSR�Report� for� fiscal�2011�created�the�Self-Assessment�column,�along�with�a�review�of�items�from�the�view-point�of�TOPCON WAY.�As�the�name�suggests,�this�report�covers�major�ac-tivities�conducted�during�fiscal�2014.
■ General Overview of theCSR Activities in FY2014In�FY2014,�we�achieved�almost�all�of�targets,�but�there�was�a�part�of�the�unachieved�items.�We�will�ensure�the�employment�rate�of�persons�with�disabilities�through�recruitment�agen-cies�for�leagal�compliance.We�incorporate�a�global�perspec-tive�to�setting�goals,�creating�value�through�business�development,�we�are�carrying�out�activities�to�help�so-ciety.
*�TOPCON WAYIn April 2011, TOPCON Group established the“TOPCON WAY” as a newly defined common val-ue by integrating and rearranging the conventionalManagement Vision, Management Policy, and Busi-ness Conduct Guidelines. Each category of CSR tar-gets and achievements is color-coded and arrangedaccording to the items of TOPCON WAY.
General Overview of the CSR Activities in FY2014Comments�from�the�Chairman��
of�the�CSR�Committee
The Targets and Achievements of CSRThe�role�of�the�TOPCON�CSR�Committee� is�to�re-view�and�evaluate�year-by-year�achievements�re-garding�our�CSR�activities,�and�to�set�goals�and�plans�for�the�next�year.�In�fiscal�2014,�we�were�committed�
to�strengthening�group�governance�（visiting�domes-tic/overseas�group�companies� for�training）,�estab-lishing�a�green�procurement�guideline�and�reducing�chemical�substances�used�in�our�products.
TOPCON GROUP CSR Report 2 0 1 505 06
CSR Mind Topcon studies the possibilities of “light,” creates new values toward the future, and contributes to build a rich human society.
Donation of old computer equipmentFor�the�second�time,�We�have�made�a�donation�of�old�com-puter�equipments�to�the�Kinder�Komputer�Wereld�Foundation.�The�foundation�offers�repairs�and�check-ups�of�the�above�equipment�and�provides�to�low-income�households.
Global�CSR�Activities TOPCON Group has accelerated its business expansion in the global.Among them, in order to fulfill the contribute to sustainable human society, it is the keynote of the spirit of TOPCON WAY, and we are vigorously the CSR activities as a responsibility for society.
Scholarship sponsorshipThrough�the�Cabot（Arkansas）Scholarship�Foundation,�We�donate�USD�1,000�annually�as�scholarships� for�students�learning�marketing�and�journalism.�This�non-profit�orga-nization�manages�over�60�privately�offered�scholarships.�The�students�who�are�granted�the�scholarship�donated�by�us� in�2014�are�currently�going�to�the�University�of�Central��Arkansas.
Contribution to LVWF and WFF for art educationAs�part�of�the�Livermore�Valley�Wine�Auction,�which�cele-brates� its�20th�year,�we�have�made�a�donation�to�the�Liv-ermore�Valley�Winegrowers�Foundation�（LVWF）�and�the�Wente�Family�Foundation�（WFF）.�These�events�provide�continuous�assistance�in� incorporated�areas�to�address�the�improvement�in�the�lives�of�local�children.�Since�the�start�of�this�activity,� they�have�collected�a�total�of�over�3.6�million�US�dollars.�
Donation of USD 4,000 for the beds in shelter facilities
We�have�made�a� d o n a t i o n�t o�t h e�O p e n�A r m s� S h e l -te r�（a�she l te r�where�abused�c h i l d r e n�c a n�s t a y�t e m p o -rarily�and�for�a�
mid-�to�long-term）.�This�shelter�is�open�24�hour�a�day,�seven�days�a�week,�and�offers�a�place�to�stay�until�the�children�find�a�new�home�or�foster�family.
Participation in the event to support the children with heart disease and their parents
We�took�part� in�the�Hearts�of�Harvest�Foundation�（a�group�that�offers�financial�support�to�children�with�heart�disease�and�their�parents）�as�a�sponsor.�TPS�employee�Steve�McCain�and�his�wife�have�been�active�members�of�the�cause,�and�they�received�support�from�other�em-ployees�to�participate�in�the�activities.
Participation in the fund-raising event for veterans support groups
Digi-Star�took�part� in�the�Copa-CHAIR-Bana��（a�fund-raising�event�to�purchase�new�chairs�in�conference�venues）�to�support� local�veterans�support�groups.�The�representatives�of�TOP-CON�and�Digi-Star�coordinated�with�other�vet-erans�support�groups,�Disabled�Veterans�Black-hawk�Chapter�39,�and�Ameri-can�Legion�Post�166,�to�donate�160�new�chairs�to�the�local�sup-port�group.
Contribution of food provision and disaster reliefWe�conducted�its�eighth�food�drive�for�14�days�from�November�8�through�21�to�offer�food�to�support�households�in�poverty.�Additionally,� in�cooperation�with�the�Center�for�Food�Action�and�Emmanuel�Cancer�Organization,�TMS�offered�support�for�house-holds� in�poverty�and�children�diagnosed�with�cancer�and�their� families.�During�the�food�drive,�TMS�employees�donated�food�and�funds�for�disaster�relief.�All�of�the�items�and�money�collected�were�donated�to�local�food�pantries.
Participation in the eye exam eventFor�two�months�from�July�and�August�2014,�We�set�every�Tuesday�as�Topcon�Tues-days�and�took�part� in�the�charity�program�by�Luxottica,�One�Sight�Mission,�again�this�year.�Over�1.7�million�underprivileged�children�were�invited�to�a�summer�camp,�named�the�Fresh�Air�Fund�Camp,�to�offer� free�eye�exams�and�eyeglasses.�We�sup-
p o r t e d� t h e�activities�by�of-fering�eye�exam�equipment�and�volunteer�partic-ipation�by�em-ployees.�
Topcon Positioning Systems, Inc.
Activities in Europe and America
Topcon Medical Systems, Inc.
Topcon Europe B.V.
Contribution to the SOS Children’s villages
TOPCON�Group�has�made�a�donation�of�DKK�12,000�to�the�SOS�Children’s�villages,�which� is�a�support�group�for�children�who�are�unable�to�receive�care�from�their�par-ents�and�those�who�are�at�the�risk.
Contribution to an ophthalmic treatment firm
TOPCON�Group�has�made�a�donation�of�DKK�9,000�to�an�ophthalmic�treatment�firm.
Topcon Denmark
TOPCON GROUP CSR Report 2 0 1 507 08
Special Feature
Factory tourWe�offered�a�factory�tour�to�introduce�not�only� its�product�portfolio�but�also�its�corporate�missions,� its�response�to�the�environment,�and�awareness�of�safety.�We�have�accepted�a�number�of�people�regardless�of�age�and�nation-
alities�and�car-ried�out�activi-ties�to�develop�attitudes�and�raising�aware-n e s s�t owa rd�manufacturing.
Improvement of work efficiency through IT constructionThe�Shirakawa�Training�Center�held�a�test�drive�workshop�to� let�participants�experience�computer-aided�construction.�By�comparing�general�construction�and�IT�construction,�the�workshop�aimed�to�emphasize�how�IT�construction�enables�safe�construction�effectively�and�rapidly.�We�can�excavate�topsoil� in�a�uniform�thickness�and�reduce�an�amount�of�ex-cavated�soil�by�25%�to�30%�by�using� IT�construction.� It� is�also�useful� for�the�vol-ume�reduction�of�soil�in�decontamination�work,�enabling�the�effective�separation�of�contaminated�soil.
Topcon Corporation / Topcon Yamagata Co., Ltd. / Optonexus Co., Ltd.
Topcon Corporation
Contribution to a children support group
We�made�a�donation�of� INR�4,000�to�the�Kolkata�Police�Co-operative�Society,�which�supports�children�who�have� lost�their�parents�in�auto�accidents.
Contribution to a homeless support group
During�the�Visiwakarma�Puja�（Festival）,�We�have�made�a�donation�of� INR4,000�to�the�Public�Works�West�Bengal,�which�supports�homeless�people�through�food�donations.
Topcon Sokkia India Pvt. Ltd.
Activities that are introduced in the report are just a few.Topcon Group will continue to carry out social contribution activities through our business activities.
Continuous participation in an eye exam event
We�cont inues�to�suppor t�wide-ranging�free�eye�exams�held�by�community�centers�and�corporate�groups.
Topcon Singapore Medical Pte. Ltd.
InternshipThe�internship�aimed�to�promote�the�devel-opment�of� independent-minded�to�select�occupations�themselves�and�a�high�level�of�vocational�consciousness�to�nurture�talents�needed�in�society�by�offering�the�opportu-nity�of� internship.�The�participants�of�the�workshop�experienced�the� importance�of�working�through�participation.
Topcon Yamagata Co., Ltd. / Optonexus Co., Ltd.
Topcon Instruments （Thailand） Co., Ltd.
Participation in a charity event held by YMCAWe�donated�THB�10,000�to�a�YMCA�charity�event�to�support�children�through�scholarship�funding.
Volunteer participation in the mangrove protection activities
We�took�part�in�the�support�activities�for�the�growth�of�man-grove�forests,�which�is�effective�in�solving�global�warming�and�the�formation�of�rich�ecosystems.
Global�CSR�Activities
Activities in Asia
TOPCON GROUP CSR Report 2 0 1 509 10
Special Feature
Internal Control System -Topcon Global Code of Conduct-Corporate Governance
TOPCON�considers�that�a�company�should�not�only�be�an�economic�entity�pursuing�profit�through�open�competition,�but�also�be�a�public� institute�valuable�for�the�society.� In�this� light,�corporate�governance�of�TOPCON�is�a�system�to�“maintain�healthy�man-
agement,”�“ensure�management�transparency”�and�“improve�management�efficiency”�in�an�appropri-ate�manner�and�to�fulfill�social�responsibilities�to�all�stakeholders� involved� in�the�business�of�TOPCON�Group.
Topcon’s�board�of�auditors�consists�of� four�mem-bers�（two�of�which�are�outside�corporate�auditors）�that�examine�decision�making�and�business�execu-tion�by�directors.�Meanwhile,�the�board�of�directors�is�comprised�of�eight�members�（two�of�which�are�outside�director）.�The�board�meets�regularly�once�a�month�and�extraordinary�meetings�are�convened�if�necessary.�The�outside�director�and�outside�corpo-rate�auditors�remain� independent�of�management�and�maintain�a�neutral�stance.�Topcon�has�adopted�
the�executive�officer�system�of�management.�By�en-trusting�day-to-day�execution�to�executive�officers,�the�company�has�separated�the�supervisory�function�of�directors/bard�of�directors�and�the�operations�function�of�executive�officers.�This�system�allows�for�the�appropriate�and�timely�response�to�rapid�chang-es� in�the�business�environment.�Topcon�is�a�com-pany�with�designated�corporate�auditors� in�which�director�decisions�and�performance�are�subject�to�internal�audit.
In�June�2014�the�Company’s�senior�management,�we�conducted�a�corporate�governance�training�by�out-side�instructors.�Through�knowledge�acquisition�of�the�Companies�Act�and�overseas�corporate�governance,�the�separation�of�supervisory�functions�and�the�exec-
utive�function,�also�the�responsibility�of�the�directors�and�auditors,�and�re-recognize�the�obligation,�un-derstanding�of�the�action�that� is�required� in�order�to�maintain�and�strengthen�governance�as�executives�we�have�an�opportunity�to�achieve�a�thorough.
TOPCON�established�a�risk-compliance�hot� line� in�2006�and�has�strived�to� identify�risks�and�compli-ance� issues�（known�or�suspected�conduct�prohib-ited�by� laws,�regulations�and�company�bylaws�and�that�against�conventional�wisdom）�at�an�early�stage�and�take�corrective�actions�against�them.�This� is�a�special�reporting�line�which�is�independent�from�the�regular�reporting� line.�Any�risk-compliance�related�information�can�be�directly�reported�to�the�responsi-ble�department�（Corporate�Audit�Division）�by�means�
of�e-mails�or�phone�calls.Corporate�Audit�Div.� is�making�efforts�throughout�the�year�to�communicate�the�system�to�employees�and�create�corporate�culture�and�climate�where�em-ployees�feel�free�to�make�a�notification.In� fact,�9�domestic�group�companies�and�16�over-seas�group�companies�each�have�a�similar�system,�making� it�possible�to�work�together�to�promote�compliance�management�by�expanding�the�system�year�by�year.
In� fiscal�2014,� in�addition�to�the�Topcon�and�its�domestic�group�companies,�the�field� internal�au-dits�were�conducted�in�13�major�group�companies,�including�each�of�the�holding�companies�overseas�with�the�goal�of� further�strengthening�the� internal�control�environment�and�improving�the�effectiveness�and�efficiency�of�operations�on�a�global�scale.�Addi-tionally,�along�with�the�field�internal�audits,�TOPCON�Group�continuously�implemented�questionnaires�for�internal�control�self-assessment�（CSA）,�targeting�36�group�companies�in�Japan�and�overseas.�In�fiscal�2014,�we�reviewed�CSA�questionnaires�and�required�respondents�to�provide�evidence�to� im-prove�accuracy�of�responses�from�group�companies.�As�a�result�of�such�continued�efforts,� the�overall�
score�for�establishment�of� internal�control�marked�96%,�two�points�up�from�the� last� fiscal�year.�（28�companies:�95%-99%,�7�companies:�90%-94%,�1�company:�85%-89%,�Average�of�36�companies:�96%）From�fiscal�2014,�we�tightened�the�criteria� for�re-quiring�improvement�to�achieve�a�higher�level�of�in-ternal�control.We�require�group�companies�which�need�to�be�im-proved�to�submit�an�improvement�plan�and�encour-age�them�to�speed�up�the�efforts� for�establishing�internal�control.In�the�future�as�well,�monitoring�will�be�continued�to�build�a�better�environment�of�internal�control�for�TOPCON�Group.
Basic approach on corporate governance
Corporate Governance Structure
Corporate governance training
Basic�approach�to�corporate�governance�of�the�Topcon�group�is�to�“maintain�healthy�management,”�“ensure�management�transparency”�and�“improve�management�efficiency”�appropriately�and�to�fulfill�social�responsibilities�to�all�stakeholders�involved�in�the�business�of�the�Topcon�Group.Not�only�delivering�great� financial�results,�but�also�operating�our�business�with�high�standards�of�ethics�and� integrity�and�being�a�trustworthy�partner�to�all�stakeholders�are�critical�for�this�purpose.
We�had�implemented�the�Topcon�Code�of�Busi-ness�Conduct,�which�was�one�of�the�centerpieces�to�ensure�compliance,� in�accordance�with�the�spirit�of�TOPCON�WAY,�within�the�Topcon�group.�And�in�December�2014,�we�revised�the�Code�as�well�as�changed�the�name�to�“Topcon�Global�Code�of�Con-duct.”�With�the�globalization�of�the�Topcon�Group,�the�number�of�employees�with�different�cultural�backgrounds�is�increasing.�The�Code�must�therefore�send�a�clear�message�about�the�values�and�commit-
ments�that�we�must�share,�wherever�we�are� locat-ed,�and�whatever�cultural�background�we�have,�as�members�of�the�Topcon�Group.�
While�the�substantive�content�of�the�revised�Code�is�substantially�similar�to�the�previous�version,�the�re-vised�Code�made�clearer�and�simpler�in�wording�so�that�all�employees�can�easily�understand�it.
To�roll-out�the�revised�Code�within�the�Topcon�Group,�the�group�companies�have�adopted�the�re-vised�Code�by�the�resolutions�of�their�respective�board�of�directors.�Also�we�have�been�providing�the�compliance�training�to�the�group�companies,�and�have�distributed�the�booklet�of�the�revised�Code�to�all�Topcon�group�members.�We�will�continue�the�training�and�other�compliance�activities� for�FY2015,�evaluate�the�effectiveness�of�the�compliance�system�and�improve� it� if�needed,�to�further�enhance�the�compliance�of�the�Topcon�Group.�
Risk-compliance hot line
Group internal audit
Topcon’s Corporate Governance StructureBoard of Directors
The�Board�of�Directors�meets�once�per�month�（and�on�other�occasions�as�needed）�to�delib-erate�issues�and�receive�reports�about�regular�agenda�items�related�to�management�policies,�those�required�under� laws�and�regulations,�and�articles�of� incorporation,�and�other� im-portant�matters�related�to�the�management�of�the�company,�practicing�and�strengthening�the�supervisory�function�over�the�company.（Corporate�auditors�may�also�attend�Board�of�Directors�meetings,�adding�their�comments�as�necessary.）
Audit StructureThe�Board�of�Corporate�Auditors�consists�of�four�members�（including�two�outside�corpo-rate�auditors）�who�audit�the�decisions�and�performance�of�the�directors.�TOPCON�has�established�Corporate�Audit�Division�to�serve�as�the�internal�audit�department�under�the�di-rection�of�the�President.�This�Corporate�Audit�Division�is�part�of�a�system�ensuring�legal�com-pliance,�as�well�as�the�appropriateness�and�efficiency�of�business�performance.�TOPCON�believes�in�the�importance�of�a�comprehensive�and�consistent� internal�audit�system�through�financial/operational�audits�performed�by�cor-porate�auditors�（and�the�Board�of�Corporate�Auditors）,�financial�statement�audits�performed�by�accounting�auditors,�and� internal�audits�performed�by�the�Corporate�Audit�Division.�TOPCON�maintains�a�high�level�of�coordination�among�all�parties,�ensuring�effective�communi-cation�and�work�flow.
General Meeting of Stockholders
Operating Divisions and Group Companies
Executive Officers Meeting
（ Discuss important matters）
Executive Officers 16（Manage daily activities）
Representative Director
Board of DirectorsDirectors 8（Outside 2） Board of Auditors
Corporate Auditors 4（Outside 2）
Accounting Auditor
Appointment�and
termination
Appointment�and
termination
Appointment�andtermination
Internal�auditing
Appointment�and
termination
Appointment�and
termination
Audit
Audit
Report
Report
Report
Report
ReportDirections
Approval��for�appointment��and�termination
Agenda�placement�and�report�on��important�matters
Directions
Audit
Corporate Audit Div.（Internal auditing）
*As of March 31,2015
TOPCON GROUP CSR Report 2 0 1 511 12
Topcon will maintain a proactive and responsive attitude by foreseeing any changes and place the utmost priority on compliance under all circumstances, thereby continually striving to be a trustworthy partner to all stakeholders.CSR Management Report
TOPCON�will�continue�to�seek�to�respect�and�protect�each�customer’s�personal�data.�TOPCON�will� imple-ment� following�Personal�Data�Protection�Policy�in�its�business�activities.
Compliance Activities
Strengthening Global Export Control SystemInformation Security
Personal Information Protection
“TOPCON�WAY”�is,�“The�advanced�and�compliance�top�priority�of�values�to�anticipate�changes,� it� is�the�presence�that�is�trusted�by�all�stakeholders”�has�been�defined�as�the�Topcon�group�common�values�that.� In�order�to�practice�this�spirit,� the�Topcon�Group�from�fiscal�2013,�but�Japan�and�the�compliance�department�of�the�US�affiliates�we�have�carried�out�a�cyclic�edu-cation�of�each�site,�the�2014�fiscal�year,�to�reflect�on�education�results�and�effectiveness,�Challenges�Identify�and�take�advantage�of�the�revision�and�improvement�of�subsequent�educational�content�of� internal�regula-tions�（Topcon�Global�Code�of�Conduct）,�by�turning�the�cycle�of�the�entire�activity,�we�are�promoting�the�activ-ities�to�strengthen�the�overall�compliance�system.
In�addition,�Topcon�as�the�companies�that�are�in-volved�in�the�medical�equipment�business,�to�ensure�the�transparency�of�the�relationship�between�the�peo-ple�of�the�medical�institutions�and�medical�personnel,�as�efforts�to�contribute�to�the�improvement�of�the�reli-ability,�and�the�“business�activities�in�fiscal�2013�estab-lished�the�guidelines�“for�transparency�of�the�relation-ship,�such�as�medical� institutions,�we�have�published�information�about�the�funding�of�medical�institutions�at�its�Web�site�from�the�2013�fiscal�year’s�worth�of�data.�In-house,�we�carry�out�education�about�the�need�for�and�the�background�to�ensure�the�transparency�of�cor-porate�activities.�And�we�have�increased�the�aware-ness�of�compliance�of�each�and�every�employee.
TOPCON�Group,�with�its�overseas�sales�ratio�of�higher�than�70%,�aims�at�“strengthening�a�global�export�con-trol�system.”�A�fragile�export�control�system�may�result�in�events�which�threaten�the�basis�of�existence�as�a�corporation.�In�the�worst�case,�the�company�would�be�prohibited�from�export�for�violation�against�applicable�export�control�laws.�As�a�leading�company,�we�are�highly�expected�to�fulfill�responsibilities�to“�maintain�in-ternational�peace�and�security.”To�achieve�the�goal�of�“strengthening�global�export�control�system,”�we�are�committed�to�implementing�the�following�measures:
1. Conducting export control auditsWe�conduct�annual�internal�audit�on�all�departments�involved�in�export.�Then,�measures�for�improvement�which�was�requested�during�audit�are�discussed�with�departments�audited�for�one�to�three�months�after�audit�to�correct�nonconformities�at�an�early�stage.�The�next�year’s�audit�conducts�follow-up�to�check�if�such�measures�are�carried�out�on�a�continuous�basis.�It�also�checks�for�missing�items�and�inadvertent�errors�such�as�in�administration�procedures�in�the�entire�process.�In�addition,�domestic�and�overseas�group�companies�are�audited�according�to�an�annual�plan�to�strengthen�global�export�control�system.Since�FY2012,�we�have�started�field�audit�of�overseas�group�companies�jointly�with�in-house�lawyers�of�a�U.S.�group�company�specialized�in�U.S.�laws.�In�FY2014,�export�control�staffs�from�Japan�and�the�U.S.�compa-nies�conducted�audit�on�group�companies�located�in�the�Spain,�the�U.S.�and�the�China�to�reinforce�the�export�control�system.�Since�FY2014,�the�Japan-U.S.�joint�audit�will�cover�subsidiaries�under�the�control�of�Positioning�Company�（POC）�in�the�U.S.�in�addition�to�group�companies�under�direct�of�control�of�TOPCON�to�maintain�and�strengthen�global�export�control
2. Providing export control educationsTo�raise�employees’�awareness�about�compliance,�we�provided�21�training�sessions�for�new�employ-ees,�mid-career�employees�and�others�engaged�in�export�control� in�FY2014�and�200�employees� in�total�participated�in�the�sessions.We�put�some�thought� in�training�materials�to�make�them�easy�to�understand�for�employees.�Furthermore,�we�provide�mandate�training�for�employees�who�will�be�assigned�to�overseas�com-panies�to�raise�their�awareness�of�their�leadership�role� in�administrating�export�control� in�a�region�where�they�will�work�in�order�to“�enhance�a�glob-al�export�control�system.”
1. Improvement of information security educationTOPCON�Group�has�made�changes�from�the�con-ventional�lecture�style�to�education�provided�through�e-learning�courses,�reducing�the�restraints�on�time�and�place�and�enabling�study�at�the�learner’s�pace�and�the�level�appropriate�to�individuals.�Additionally,�by�imple-menting�a�completion�test,�it�aims�to�improve�the�learn-ing�level.�A�total�of�758�employees�and�883�employees�in�all�groups�in�Japan�took�the�e-learning�course.
2. Security diagnosis by an information security expertAgain� in�this�fiscal�year,�a�security�diagnosis�was�
conducted�by�an� information�security�expert�firm�to�perform�diagnostics�on�the�robustness�against�external�threats�（intentional�attacks�and�third-par-ty�misuse,�etc.）�to�continuously�ensure�that�it�is�on�a�proper�security�level.
3. Strengthening of disaster responseBy�transferring�the�control� function�of�the�e-mail�system�and�network,�which�were�installed�on�Top-con’s�premises,�measures�were�provided�to�re-move�any�obstacles�for�linkage�outside�the�group�when�affected�by�a�disaster.�
3. Developing export control specialistsTo�improve�expertise�of�employees�engaged�in�export�control,�TOPCON�Group�recommends�them�to�take�a�“certification�exam�on�export�con-trol”�held�by�the�Center�of�Information�on�Security�Trade�Control�（CISTEC）.�As�of�the�end�of�March�2015,�84�employees�obtained�the“�Certificate.”�We�are�making�positive�efforts�to�improve�skills�of�employees�throughout�the�Group.
4. Periodically holding export controlpromotion meetings
To�share�information�on�global�trends�and�situa-tions�of�export�control�in�TOPCON�Group,�we�peri-odically�hold�export�control�promotion�meetings�to�raise�the�awareness�of�employees�within�the�group.Particularly� in�recent�years,�there�has�been�of�a�significant�change�in�world�affairs,�such�as�Six-Party�
Talks�concerning�the�2014�Crimean�crisis�and�Iran�and�weapons�of�mass�destruction,�and�the�break-through� in�diplomatic�normalization�negotiations�between�the�US�and�Cuba.�To�thoroughly�practice�export�control� in� line�with�these�changes,�the� in-formation�is�shared�and�fed�back�internally.
5. Regions requiring special controlTOPCON�Group�designates�six�countries� including Iran,�Iraq,�Cuba,�Syria,�（Northern）�Sudan�and�North�Korea�which�are�subject�to�special�regulations�under the�Foreign�Exchange�and�Foreign�Trade�Act�of�Japan�and�relevant�U.S.� laws�as�“regions�requir-ing�special control”�and�applies�the�most�stringent�procedures�for�screening�for�trade�and�administra-tion�in�the�TOPCON export�control�program.We�will�further�strengthen�our�export�control�sys-tem to�achieve�the�highest�quality�of�the�system.
Basic Policy
12
34
TOPCON strictly observes the applicable laws and regulations with re-spect to personal data.
When TOPCON obtains personal data from customers, in case without any particular explanation, TOPCON uses personal data with the aim of providing the information of the products and services of TOPCON or of its affiliated company, etc for the customer and also of showing new or useful information.TOPCON may provide and confide data to third parties with a view to analyzing or processing, feeding back, etc for our customer. The informa-tion will be handled appropriately in all these processes in accordance with the business activities and scale of TOPCON.
TOPCON takes rational safety measures against the risk of unauthorized access and disclosure, loss, destruction, and alternation, etc of personal data.
TOPCON has established management system relating to personal data protection and strives to continuously improve.
TOPCON GROUP CSR Report 2 0 1 513 14
Topcon will maintain a proactive and responsive attitude by foreseeing any changes and place the utmost priority on compliance under all circumstances, thereby continually striving to be a trustworthy partner to all stakeholders.CSR Management Report
Quality Improvement Activities
Acquisition of ISO9001 Certification
Joint Activities with Procurement PartnersWith�the�quality�policy�of�“Topcon�will�do�its�utmost�to� improve�quality� in�all�stages�from�development�and�design�to�manufacturing,�sales�and�service;�sup-ply�products�of�the�highest�quality,�and�develop�our�customers’�businesses,”�Topcon�continuously�imple-ments�quality� improvement�activities�so�that�all�of�our�customers�can�use�our�products�with�peace�of�mind.�Not�only�preventing�the�reoccurrence�of�rejec-tions,�we�manufacture�products�from�the�customers’�perspective�from�upstream�product�development�to�ensure�the�prevention�of�quality�issues.�Additionally,�by�setting�the�behavioral�guidelines�based�on�the�guiding�principles�of�actual�place,�actual�thing,�and�actual� fact,�Three�Reals�Philosophy�（Sangen�shugi）,�and�the�pursuit�of�truth,�all�employees�take�part� in�steady�quality� improvement.�We�held�an� internal�event�during�the�quality�awareness�month�in�Novem-ber� last�year�to� improve�technology�and�raise�the�awareness�of�making�the�quality�the�first�priority.�All�
employees’�quality�consciousness�was� improved�by�implementing�a�case-study�presentation,�introducing�the�optimization�of�design�with�the�help�of�quality�engineering,�and�holding� lectures�on�the�theme�of�improving�procurement�quality.
TOPCON�Group�selects�suppliers�based�on�com-prehensive�assessment�of�product�quality,�pricing,�delivery�times,� level�of�technology,�stability�of�man-agement�and�consideration�of�the�environment.�TOPCON�Group�has�fair�business�relationship�with�the�suppliers�in�accordance�with�the�applicable�laws�
and�regulations�concerning�procurement.�We�will�work�with�our�procurement�partners�to�promote�green�procurement�as�well�as�to�address�issues�con-cerning�conflict�minerals� in�consideration�of� future�concerns�such�as�global�warming�and�exhaustion�of�natural�resources.
We�held�a�briefing�session�on�management�policy�on�October�28,�2014�for�the�purpose�of�enhancing�partnership�with�suppliers� for�co-existence�and�mu-tual�benefit.�With�152�participants� from�100�com-panies�（including�five�from�3�companies�of�overseas�suppliers�and�China）,�we�had�explanation�on�man-agement�policy�by�President�and�General�Managers�of�Companies�and�on�procurement�policy�by�Gen-eral�Manager�of�General�Procurement�Division�to�deepen�understanding�of�suppliers�on�management�and�procurement�policies�of�TOPCON�Group.TOPCON�Group�presented�an�award�to�two�excel-lent�suppliers.�The�factory�and�showroom�visit�was�arranged�during�the�corporate�strategy�meeting�
along�with�its�presentation.�Participants�enjoyed�the�event.
Topcon�Group,�of�course�employees� in�charge�of�procurement,�it�is�timely�implementation�of�Subcon-tract�Act�education�to�all�employees.�In�fiscal�2014,�both�to�implement�the�education�by�the�Subcontract�Act�training�sessions�to�all�administrator�through�
September-October,� it�was�carried�out�the�Subcon-tract�Act�education�through�e-learning�to�the�rest�of�all�employees�over�the�November-December,�and�the�Subcontract�Act�We�have�to� improve�the�well-known�thorough�and�law-abiding�consciousness.
Green�procurement�is�a�system�to�source�products,�components�and�raw�materials�having� lower�envi-ronmental�impact�from�suppliers�which�promote�en-vironmental�conservation�activities�positively.Topcon�establishes�“green�procurement�guideline”�and�is�promoting�a�match�to�the�environment.We�have�completed�conformability� investigation�con-duct�and�CE�marking�sticking�of�a�target�product�as�correspondence�of�a�change�RoHS�order�（2011/65/EU）.�We�expand�a�target�product�and�advance�cor-respondence�continuously.“Supply�manufacturer’s�standard�catalog”�is�being�built�and�preparatory�au-
dit�and�registration�of�the�standard�part�which�pro-motes�adoption�by�future’s�new�product�are�being�performed.With�the�cooperation�of�suppliers�and�manufac-turers,�TOPCON�Group�carried�out�the�chemical�content�inspection�of�procurements�to�make�efforts�in�response�to�the�specific� laws�and�regulations�on�chemical�substances.�We�will�continue�to�focus�on�the�management�of�partner�companies�by�placing�emphasis�on�chemical�substance�control�to�employ�procurements�with�clear�survey�data�on�chemical�substances.
TOPCON�Group�has�acquired�ISO�9001�certification,�an� international�standard�for�quality�management�and�maintained�conformity�to� it.�We�are�promoting�improvementin� from�development�to�production,�sales�and�after-sales�support�with�slogans�of�“Cus-tomer�First”�and�“Quality�First.”
Since�1994�when�Surveying�Equipment�Division�ac-quired�the�certification,�major�bases�of�TOPCON�Group�have�obtained�it� for�20�years.�We�will�con-tinue�to�make�efforts�to�offer�more�reliable�products�and�services�as�a�global�company.
Briefing Session on Management Policy for Suppliers
Compliance
Green Procurement
Certificate�of�ISO�Japanese�version�and
English�version
Year of acquisition, conforming standards
（headquarters）
Y1994（Surveying equipment business）：ISO9001：1994edition
Y1995（Medical equipment business）：ISO9001：1994edition
Y1998（Industrial equipment business）：ISO9001：1994edition
Y2000（Total of the entire company）：ISO9001：1994edition
Y2002（Company-wide）：ISO9001：2000edition
Y2010（Company-wide）：ISO9001：2008edition
Certification authorities SGS Japan Inc.
Result of audit
（past 3 years
）
FY2012 FY2013 FY2014
Type of audit Surveillance Surveillance Renewal
Nonconformities（Major） 0 0 0Nonconformities（Minor） 0 0 0Opportunities for improvement 7 9 4
http://www.topcon.co.jp/en/corporate/quality/（Quality�Assurance�Activities） http://www.topcon.co.jp/en/procurement/（International�Procurement）
Audit result and year of acquisition
TOPCON GROUP CSR Report 2 0 1 515 16
CSR Management Report Topcon will do its utmost to improve quality in all stages from development and design to manufactur-ing, sales and service; supply products of the highest quality, and develop our customers’ businesses.
Topcon will build relationships of mutual trust and partnership with sales agents and other business partners, and mutually develop business through information sharing and close cooperation.
Labor UnionTOPCON-Related Workers’ CooperativeThe�workers’�cooperative�was�formed�for�the�main�purpose�of�encouraging�the�interchange�between�the�labor�unionists�（and�labor�unions）�working�for�TOPCON�manufacturing�companies�and�improving�the�labor�conditions�of�the�entire�of�related�labor�unions.Their�day-to-day�operations�aim�to�maintain�the�employ-ment�conditions�and�to�maintain�and�enhance�the� life�sta-bility�and�the�real�standard�of�living.
Communications Between Labor Union and CompanyLabor-management gatherings ：Regularly�held�once�a�month�to�share� information.�The�company�reports�on�the�business�conditions�and�new�topics,�and�the� labor�union�in�turn�gives�its�opinions�or�suggestions.Labor-management negotiations：Held�regularly�once�a�month�or�when�requested�to�exchange�opin-ions�on�specific� issues�or� for�the� labor�union�to�make�representa-tions�to�the�company.
Major labor-management negotiation issues in fiscal 2014● Amount of annual bonus● Annual holidays （company calendar）● Review of addition of retirement allowance base● Revision of the retirement plan● Revision of a performance-based bonus system （index table andcalculation）
● Qualification of union members （“PS/SS” treatment after institu-tional abolition）
● Introduction of an annual leave plan acquisition system● Transfer to a subsidiary company and transfer● Human resources development● benefit program
Name: TOPCON Labor UnionRepresentative: Executive Chairman, Akitomo TazawaEstablished: January 29, 1946Form: Independent in-house unionUnion member information（as�of�April�1,�2015）:1. Number of union members/504 （418 men and 86 women）2. Average age/40.8 （Men: 41.1,Women: 39.5）3. Average length of service/17.6 years
（Men: 17.8 years, Women: 16.3 years）Eligibility: Regular employees at or below the deputy
manager levelForm: Union shop
（All employees must join the union for an agreed period. ）Superior body: None Name: Topcon Group Labor Union Council
Representative: Chairman, Akitomo Tazawa（Executive Chairman of TOPCON Labor Union）
Established: March 8, 1981Member of organizations:
TOPCON Labor UnionTOPCON YAMAGATA Labor UnionOPTONEXUS Labor Union
● TOPCON YAMAGATA Labor Union�（as�of�April�1,�2015）Established/1947Representative/Executive Chairman, Kazuya SuzukiNumber of union members/197（138 men and 59 women）Average age/40.0（Men: 40.1, Women: 39.6）Average length of service/19.7 years
（Men: 19.7, Women: 19.6）● OPTONEXUS Labor Union （as�of�April�1,�2015）Established/October, 2003Representative/Executive Chairman, Manabu SakumaNumber of union members/157（83 men and 74 women）Average age/43.9（Men: 41.1, Women: 47.2）Average length of service/24.0 years
（Men: 21.1, Women: 27.2）
Communication with Employees, Education for Risk Management
Working Hours, Leave System and Job-related AccidentsOur�overtime�working�hours�has�increased�due�to�new�product�development�and�keeping�time�delivery,�and�the�total�work-ing�hours�per�person�became�more�than�2,000�hours� for�three�consecutive�years.�We�will�consider�specific�efforts�to�reduce�total�working�hours�and�to�promote�tak-ing�annual�paid�leave.
Promotion of activating communications between employees and the company
FY2012 FY2013 FY2014Total working hours（per capita） 2,022hours 2,073hours 2,119hours
Overtime working hours（per capita） 215hours 276hours 318hours
Total and overtime working hours of employees （TOPCON Headquarter only）
Name of support system Period / Qualification Y2010 Y2011 Y2012 Y2013 Y2014Childcare Leave Till the end of the month in which a child reaches the age of 2 13 6 8 12 10Short-time Work Till a child finished the 3rd grade at elementary school 10 10 10 14 14Nursing Leave 1 year 0 0 0 0 0
Re-Employment System Those who have retired at retirement age 14 10 10 9 11
Number of Employees Who Applied for Various Job Support Systems （TOPCON Headquarter only）
There�was�no�Job�accident�in�fiscal�year�2014.TOPCON HQFY2013
Average of the Manufacturing Industry More than100 employee
Average of All Industries
More than100 employeeContinuous accident free hours
Consecutive hours free of accidents resulting in fatalities or absences of 1 day or longer
Total 2246thousand hours ̶ ̶
Severity rate
（Absence of 1 day or longer） Percentage of serious accidents 0 0.09 0.09
Frequency rate per working hours
Number of dead and injured per million working hours 0 1.06 1.66
Frequency rate per 1,000 workers
Number of dead and injured per 1,000 workers per annum 0 2.90 2.30
（Note） Sources:The record of continuous accident-free hours:
Cumulative hours from the day following the occurrence of a job-related accident （absent from work） to the end of March 2014Severity rate and frequency rate:
“Survey on Industrial Accidents 2013,” Ministry of Health, Labour and WelfareFrequency rate per 1,000 workers:
Per 1,000 workers by industry. “Workplace safety” website （2014） http://anzeninfo.mhlw.go.jp/information/h08_26_sen01.html
Job Accidents
TOPCON�has�constructed�and�commenced�the�oper-ation�of�a�bottom-up�system,�namely, ”Guess! What I have” in�which�each�employee�can�freely�post�their� thoughts,�problems,�and�questions�to�seek�answers.� The�purpose�is�to�change�the�company�for�better� and�collect�the�voices�of�each�employee�to�make�im-provements�in�small�steps�with�the�goal�of�providing�
a�better�workplace�where�all�employees�can�work�with�a�positive�attitude.�Anybody�who�works�in�the�group�companies�in�Japan�can�post�anything,�even�small�ones,� lightheartedly,�and�the�company�responds�and�replies�with�sincerity.
Company�cafeteria,�about�700�employees�use�ev-ery�day,� is�essential� facility� for�employees.�With�the�aim�to�enhance�employees’�satisfaction,�we�renewed�our�popular�menu�“noodles”,�”curry”,�and� introduced�“salad�bar”�by�female�employees’��requests,�and�carried�out�some�events�such�as�“free� lunch”.�We�also�promote�easy-to-see�and�easy-to-understand�menu�display�by�TV�monitor.��Recently�our�cafeteria�was�opened�to�employees�of�
neighboring�business�so�that�they�could�freely�use�there.�They�said�“Hot�meal�was�happy”.�Employees’�family�also�can�use�the�cafeter ia�on�the�day�“Family�Day”.�The�caf-eter ia�has�become�a�place�of�exchange�with�the� local�community�and�family.
Our�company,�manufacturing�and�sales�of�the�world’s��most�advanced�ophthalmic�equipment,�“Ophthal-mology�examination�by�using�3D�OCT”�（fundus�ex-amination,�intraocular�pressure�testing�and�refraction�test�and�we�conduct�the�examination�by�a�doctor）�is�conducted�for�employees�who�are�age�50�or�above�
and�wish� it� in�ophthal-mology�c l in ic�space�of�our�showroom.� It� is�possible� for�employees�to�grasp�the�health�of�the�eye,�can�lead�to�early�de-tection�and�early�treatment�of�the�disease.
With�the�expansion�and�promotion�of�our�business�activities,� there�are�an� increasing�number�of�em-ployees�traveling�overseas.�Also,� in�recent�years,�due�to�complicated�world�affairs,�conflicts�of� inter-ests�between�nations�and�terrorist�activities�occur�frequently� in�various�places�around�the�world.� In�order�to�safely�drive�forward�our�business�activities,�it� is�extremely�critical�to�know�the�security�risks�for�
each�country�and�region� in�which�we�expand�our�activities,�so�that�each�employee�has�an�awareness�of�safety�management�overseas�and�the� individual�mind�of�representing�the�company.� In�the�view�of�such�circumstances,�an�overseas�security�seminar�by�an�outside�expert�was�held�to�learn�about�where�such�risks�exist.�The�seminar�was�useful� for�attend-ees�to�protect�themselves�in�overseas�for�future.
Improvement of company cafeteria
Ophthalmology examination by using 3D OCT
Conduct of overseas security seminar
TOPCON GROUP CSR Report 2 0 1 517 18
CSR Activity Report Topcon will implement two-way communication with employees, and will respect diverse individualities, values, and the spirit of creation and innovation, and maximize the employees’ skills.
2013
（1,000ℓ）0 100 200 300 400 500
2014 70 99 57 203TOTAL 474
45
76 102 43 10653TOTAL 380
（FY）
EUU.S.AASIADomestic group companiesTOPCON HQ
2013
（FY）
（1,000kwh）
EUU.S.AASIADomestic group companiesTOPCON HQ
0.0 10,000 20,000 30,000
2014TOTAL 23,5438,192 7,405 4,328
2,475 1,143
TOTAL 26,8918,442 9,954 4,975
2,453 1,067
2013
（ ton ）0 20 40 60 80
2014 27 9 281 5TOTAL 69
27 12 271 5TOTAL 71
（FY）
OthersAcid/AlkalineOrganic solvents1-BPIPA
（FY）
（t-CO2）0.0 5,000 10,000 15,000
2014TOTAL 12,4373,248 3,102 3,519
2013
1,548 1,020
TOTAL 13,7613,340 4,113 4,066
1,519 723
EUU.S.AASIADomestic group companiesTOPCON HQ
2013
0 600400200 800 1,000
2014 284 205 64 290 82TOTAL 925
292 261 66 216 99TOTAL 934
（ ton ）
（FY）
EUU.S.AASIADomestic group companiesTOPCON HQ
Fossil fuel consumption（crude oil conversion）Energy consumptions
Chemicals consumptions
CO2 Emissions
Waste emissions Note：The calculations involve reviews mainly concerning the scope of data collected and the method of conversion. Example：The amount of CO2 emitted by
TOPCON headquarters and its Japanese sites has been recal-culated and adjusted according to the latest emission factors for individual electric power suppliers.
Regarding the increase or decrease in the en-vironmental impact, which also includes the above data, we will check the details in the group environmental auditing mentioned on page 21 and, if necessary, request the compa-ny concerned to implement improvement.
INPUT OUTPUTTOPCON Business Activities
Manufacturing
Procurement
Research,development & designing Greenhouse gasCO2 （t-CO2） 3,248
Air contaminantsNOx （kg） 46
Water contaminantsDrainage volume （m3） 10,014BOD （kg） 1,412SS （kg） 1,070
Chemical substancesAmount （kg） 3,349
WasteAmount （tons） 284
Materials*1
Iron （kg） 0Copper （kg） 0Aluminum （kg） 0
EnergiesElectric （1,000kWh） 8,192Gas （1,000m3） 52Petroleum （kℓ） 16
Water resourcePotable water （m3） 21,115Industrial waste （m3） 10,622
Chemical substances*2
Amount of use （kg） 7,352
UNGC-related Activities
TOPCON GROUP Environmental Vision 2020
The�United�Nations�held�a�session�of�the�World�Eco-nomic�Forum�in�Davos,�Switzerland�in�January�1999,�when�Kofi�Annan,�the�then�Secretary�General�of�the�United�Nations,�proposed�the�concept�of�the�Global�Compact�（GC）.�The�GC�was�formally�inaugurated�in�July�2000.The�GC�requires�the�participating�corporations�or�organizations�around�the�world�to�support�and� im-plement�the�globally�established�10�Principles�in�the�four�areas:�human�rights,� labor,�the�environment,�and�anti-corruption.Since�joining�the�GC�in�October�2007,�TOPCON�Group�has� incorporated�the�spirit�of�the�10�Princi-
ples�into�the�TOPCON�WAY�and�a�variety�of�policies�comprising�the�core�of�group�management,�such�as�the�CSR�Basic�Policy.
We�carry�out�a�variety�of�activities�to�embody�the�spirit�of�GC�and�to�raise�employees’�awareness.�■ �Hold�a�seminar�on�prevention�of�bribery�at�group�companies�as�part�of�compliance�training.
■ �Add�items�on�human�rights�in�an�employee�hand-book.
■ �Add�terms�on�human�rights�in�an�employment�con-tract.�Obtain�understanding�for�human�rights� from�employees�by�signing�an�employment�contract.
TOPCON�Group�has�precision�plants� in�Japan�and�China�and�assembly�plants� in�the�U.S.�These�plants�have�impact�on�the�environment�such�as�CO2�emis-sions�from�theuse�of�electricity�and�fossil� fuel�and�waste�generated� in�manufacturing�processes.� In�addition,�as�a�characteristic�of�an�optical�instrument�manufacturer,� the�plants�use� large�quantity�of�or-
ganic�solvent�for�cleaning�purpose�in�manufacturing�and�assembly�processes.�We�report�environmen-tal� impact�such�as�CO2�emissions�and�the�amount�of�energy�use�resulting�from�business�activities�of��TOPCON�Group�including�sales�companies�which�have�relatively�small�impact�on�the�environment:
Disclose�the�balance�between�energy�and�materials�caused�by�our�corporate�activities.（TOPCON）
To�fulfill�its�social�responsibility�as�a�corporate�group�that�offers�products�to�the�global�market,�TOPCON�Group�has�established�its�position�concerning�this�
important�environmental� issue�and�has�declared� its�group-wide�commitment�to�its�Environmental�Vision�2020:
Preventing global warmingTOPCON Group, which regards global warming as the most import-ant environmental issue, aims to
reduce the amount of CO2 emitted by all of its Japanese sites by 25% before the end of fiscal 2020, as compared with fiscal 1990.Overseas sites will endeavor to reduce the amount of CO2 emissions site by site accord-ingly.
Contribution by ProductsWe will promote efforts to reduce energy consumption and to conserve resources to reduce the environmental impact through the product lifecycle much more.
We will work with our customers to offer products, technolo-gies, and services that help prevent global warming, that make effective use of natural resources, and that conserve biodiversity. Also, in manufacturing, we will commit to recycling and using ef-fectively the waste material produced from our corporate activi-ties, including development, production and sales.
The Ten Principles● HUMAN RIGHTSPrinciple 1 Businesses�should�support�and�respect�
the�protection�of� internationally�pro-claimed�human�rights;�and
Principle 2� �make�sure�that�they�are�not�complicit�in�human�rights�abuses.
● LABOURPrinciple 3� �Businesses�should�uphold�the�freedom�
of�association�and�the�effective�recogni-tion�of�the�right�to�collective�bargaining;
Principle 4� �the�elimination�of�all�forms�of�forced�and�compulsory�labour;
Principle 5� �the�effective�abolition�of�child� labour;�and
Principle 6� �the�elimination�of�discrimination� in�re-spect�of�employment�and�occupation.
● ENVIRONMENTPrinciple 7� �Businesses�are�asked�to�support�a�pre-
cautionary�approach�to�environmental�challenges;
Principle 8� �undertake� initiatives�to�promote�greater�environmental�responsibility;�and
Principle 9� �encourage�the�development�and�diffu-sion�of�environmentally� friendly�technol-ogies.
● ANTI-CORRUPTIONPrinciple 10� �Businesses�should�
work�against�cor-rupt ion� in�a l l� i ts�forms,� including�extortion�and�brib-ery.
http://www.unglobalcompact.org/index.html（UN�Global�Compact）
Environmental ImpactEnvironmental Impact of the TOPCON GROUP （FY2014）
Environmental Impact Caused by TOPCON HQ （FY2014）
1 2
Note： Supplement to the “OUTPUT” section ● Exhaust heat： Discharged to the atmosphere ● Water discharge： Completely treated and then sent to sewage ●Waste material： Delivered to a recycling manufacturer
（Anything that cannot be recycled undergoes thermal recycling.） ➡ The zero emission plan is underway.*1 ： Using natural resources and raw materials as in-house processed goods*2 ： Expanding the target of chemical substances to cover all materials; mainly through atmospheric emissions
TOPCON GROUP CSR Report 2 0 1 519 20
CSR Activity Report Topcon, as a member of the global and local community, will respect global standards concerning human rights, the environment, labor standards, and anti-corruption measures, and contribute to building sustainable markets.
axes�indicated�in�G4.�This�report�runs�a�special� feature�on�the�global�social�con-tribution�activities�as�responsibilities�to�be�fulfilled�for�en-riching�the�society.�The�axis�of�this�report�is�the�same�as�last�year’s�feature,�Creating�Shared�Value�（CSV）�activities�and�other�social�contribution�activities.�There�are�two�things� I�would�like�to�point�out.For�one,�the�positioning�of�the�special� feature,� in�my�opin-ion,�should�cover�topics�that�are�most�appealing�to�readers�within�the�report,�and�the�editorial�policy�should�state�why�the�topic�was�selected.� I�believe�such�an�explanation�will�increase�the�appeal�to�readers.�Most�of�TOPCON’s�prod-ucts�contribute�to�solutions�to�social�challenges�and�create�social�values�and�common�corporate�value.�Because�of�this,�it� is�fully�understandable�that�the�report�covers�similar�spe-cial� features�two�years� in�a�row,�such�as�the�CSV�and�the�responsibilities�to�be�fulfilled�for�enriching�society�as�the�Group�offers�wide-ranging�product�lines.�However,�the�disso-ciation�between�the�title�and�descriptions�is�significant.�The�advocate�of�CSV,�Michael�Porter,� indicates�the�directional-ities�of�CSV�to�be�（1）�the�provision�of�products�and�services�that�resolve�social�challenges,�（2）�the�simultaneous�pursuit�of�enhanced�competition�among�value�chains�and�social�contribution,�（3）�the�simultaneous�pursuit�of�enhanced�com-petition�framework�within�the�region�of�business�expansion�and�social�contribution.�Again,� I�would� like�the�report�to�include�the�concepts�of�CSV�and�social�responsibilities�after�careful�examination�and�consideration.Second,�CSV�is�not�a�developed�form�of�CSR.�It�is�one�of�the�aspects�of�CSR�but� I� reaffirm�that� it�cannot�serve�as�a�re-placement.�The�shared�awareness�of�CSR�is�a�responsibility�with�social�and�environmental� impacts� imposed�by�corpo-rations.�It�is�also�important�to�verify�and�evaluate�the�social�value�created�by�CSV�and�the�responsibilities�to�fulfill� for�enriching�society.� If� the�report� includes�a�statement�of�ver-ification�and�evaluation,�the�persuasiveness�of�the�report�will�inevitably�increase.�
Chinese�group�company,�Topcon�Optical（Dongguan）�Technology�Ltd.,� is�making�company-wide�efforts�to�reduce�energy�consumption�based�on�its�corporate�policy� for�2014;�the�conservation�of�resources,�re-duction�of�waste�（spoiled�work）,�reduction�of�sew-age�water,�and�streamlined�operations.�As�part�of�the�specific�activities,�it�has�been�installed�the�latest�
c oo l i n g�s y s t em�i n�June�2014�to�replace�the�old�cooling�sys-tem,�which�generated�a� l a r g e�amoun t�o f�dissipating�energy�of�about�1 .5�o f�COP*�due�to�ag ing .�With�
this,�the�energy�efficiency�will�be�increased�by�200%�and�the�COP�to�be�8.0�and�above.� In�addition,� it�saved�energy�consumption�by�replacing�the�cool-ing�tower�of�the�HVAC�equipment� for�the�factory.�This�activity�was�honored�the�Guangdong�and�Hong�Kong�Clean�Production�Partner�Award-only�100�companies�out�of�about�10,000�manufacturers�of�
Hong�Kong�located�in�Dongguan,�China,�are�commended�by�t he�gove rnmen t�o f�the�Hong�Kong�（Hong�Kong�P r odu c t i v i t y�Council）�and�the�gov-ernment�of�Dongguan.
Five�companies�（four� in�Japan�and�one� in�China）�which�have�environmental� impact� from�manufactur-ing�processes�have�acquired�ISO�14001�certification�and�are�subject�to�screening�by�a�certification�au-thority�to�ensure�appropriate�management.The�screening�carried�out�in�fiscal�2014,�no�compa-
nies�received�a�Category�A�（major）�non-compliance�items�and�all� retained�their�respective�certification.�They�have�taken�appropriate�measures�for�improve-ment�on�Category�B� items�（minor�nonconformities）�and�items�with�room�for�improvement�（not�noncon-formities）.
Since�2007,�TOPCON�has�conducted�a�survey�on�environmental� impact�targeted�at�group�companies�around�the�world�and�provided�guidance�to�those�which�are�need�for� improvement.�See�page�20�for�the�result�of�the�survey�conducted�in�FY2014.
We�audit�the�manufacturing�companies�in�the�group�on�the�document-basis�with�a�focus�on�environmen-tal�conservation�activities�（audits�on�environmental�management�and�compliance）�in�addition�to�the�sur-
vey�on�actual�environmental� impact�as�mentioned�above.� In�FY2014,�six�group�companies�underwent�the�survey�and�were�found�to�have�no�problems�in�management.
Efforts Related to Environmental Impact Reduction
“ISO 14001” audit in TOPCON Group
Fact-Finding Survey
Environmental Auditing of Group Companies
* COP : Ratio of work or useful output to the amount of work or energy input, used generally as a measure of the energy-efficiency of air conditioners,space heaters and other cooling and heating devices
Questionnaire�（Japanese）
Questionnaire�（English）
Approval Date
Certification organization Latest audit date Type of audit Category “A”（major）
Category “B”（minor）
Room for improvement
Good practices
Topcon Headquarters Topcon Technohouse 1997. 9.29 JACO 2014/ 9/ 8～ 9 Surveillance 0 0 2 7
Topcon Yamagata 2000. 3.20 TUV 2014/ 7/24～25 Surveillance 0 1 3 2
Topcon Optical（Dongguan）Technology Ltd.（China） 2001. 5.17 SGS 2015/ 4/15～16 Surveillance 0 1 2 ―
Optonexus 2001.12.21 JQA 2014/11/18～19 Renewal 0 0 11 2
Note: Certification of TOPCON TECHNOHOUSE has been obtained and kept by expansion of the scope of TOPCON HQ’s certification.
Since�ISO�26000�was�issued�in�2010,�many�domestic�and�in-ternational�rules�that�influence�the�course�of�corporate�infor-mation�disclosure�have�been�developed,�such�as�the�require-ments�for�non-finance�reporting�by�the�EU,�Global�Reporting�Initiative�（GRI）�G4�Guidelines�（G4）,� Integrated�Reporting�Framework�by� International� Integrated�Reporting�Council�（IIRC）,�and�the�Corporate�Governance�Code.�Under�such�circumstances,�corporations�who�want�to�become�global�leaders�must�consider�market�trends�and�expectations�to�make�a�quantum�improvement�in�CSR�reports,�instead�of�the�conventional�continuous�improvement.�However,�this�report�has�almost�the�same�composition�as�the�previous�year,�and�I�was�slightly�disappointed�at�first.�Despite�this,�through�the�annual�meeting�to�exchange�opinions,� I�started�to�develop�greater�expectations�after� learning�of�the�Group’s�efforts� in�strengthening�the�editorial�structure,�integrated�practical�op-erations�of�CSR�and�IR,�integration�of�technologies�and�man-ufacturing�organizations�by�companies,�revision�of�the�Code�of�Business�Conduct�based�on�globalization,�construction�of�the�bottom-up�system�using�“Guess! �What�I�have”�（many�requests�were�posted）,�and�other�approaches�that�are�com-ing�into�operation,�along�with�employees’�challenging�state-ments�in�the�creation�of�future�reports.�In� f iscal�year�2014,�TOPCON�Group�has�achieved�re-cord-high�sales�and�profits,� in�addition�to�14.8%�of�ROE,�which�has�been�the�recent� focus�of�attention.�While�the�reason�behind�these�achievements�is�due�to�the�changes�in�the�economic�and�social�environment,�the�accomplishments�stem�largely� from�the�worldwide�spread�of�TOPCON�WAY�and�the�business�model�of�creating�new�value�by�developing�Time-to-Market�No.1�（TM-1）�products,�achieving�our�poten-tial,�and�meeting�the�unnoticed�needs�of�customers.�To�that�end,� I�would� like�to�suggest�that�the�CSR�report�provides�information�in�accordance�with�the�seven�pillars�of�TOPCON�WAY,� instead�of�the�conventional�method�of�reporting�cor-porate�observance,�management,�and�activities,�and�states�the�value�creation�process�based�on�the�business�model.�This�report�offers�22�pages�and�summarizes� information� in�a�compact� format.�While�each�guideline� leads�to�a�simpli-fied�report,�and�this�directionality�accords�with�the�report,�the�guidelines�simultaneously�highlight�the�selection�of�materiality�（importance）.�For�example,�G4�states�that�the�organization�must�provide�aspects�that�reflect�the�significant�impact�given�to�the�economy,�environment,�and�society,�or�those�with�a�substantial�impact�on�the�evaluation�and�deci-sion-making�of�the�stakeholders.�This�report�also�details� in�the�space�allowed�product�characteristics�and�the�strength-ening�of�the�global�export�control�system,�which� is�one�of�the� important�criteria� for�global�expansion,�and� it�deserves�to�be�highly�regarded.�In�the�future,�I�expect�to�see�all�of�the�entries�after�selecting�and�stating�the�materiality� from�two�
Third-Party Opinion
Junkan Workers Club:This is a civic group whose main purpose is to （1） discuss from a global point of view, the ideal figure of a circulation-based society, which is to have harmony with the natural ecosystem that should be handed down to our next generations, and （2） research, support, and implement any efforts to form a circulation-based society by local citizens, businesses, and public administrations. URL : http://junkanken.com/
Tamio Yamaguchi,Representative
Specified non-profit organizationJunkan Workers Club
Seven pillars of the TOPCON WAY penetrate as our mind that global expansion business, we continue to create a new value creation. CSR is activities to fulfill company’s responsibility and grow society, it is activities to evolve with society. CSR activities is nothing other than to
practice the TOPCON WAY for us.We will contribute to the society by solving the social issue through our products and services following the slogan of “Creativity & Growth”.
In Response to the Third-Party Opinion
TOPCON CSR Committee Chairman Makoto Iwasaki
TOPCON GROUP CSR Report 2 0 1 521 22
CSR�Activity�ReportTopcon, as a member of the global and local community, will respect global standards concerning human rights, the environment, labor standards, and anti-corruption measures, and contribute to building sustainable markets.