TOPCON GROUP CSR Report2013

TOPCON WAY

TOPCON GROUP CSR Report

2 0 1 3

C O N T E N T SCompany Overview …………………………………… 02Financial Information ………………………………… 02

Message from the President …………………… 03

CSR Mind ……………………………………………… 03The Targets and Achievements of CSR …………………………………………………… 05

Special FeatureContribution to society through business activities based on the TOPCON WAY … 07

Disseminating Corporate Governance …………………… 09Addressing Risk-Compliance issues …………………… 09Risk-Compliance Hot-line ………………… 09Internal Auditing of TOPCON Group …………………………… 10Other Risk Countermeasures …………… 10Strengthening a global export control system ……… 11Information Security and Personal Information Protection ……… 11

Quality Improvement Activities ……… 12

Joint Activities with Procurement Partners ……………… 12

Personnel System ……………………………… 13Giving Support to Various Ways of Working …………………………………………… 13Measures for Smoking ……………………… 15Health Care ………………………………………… 15Health Promotion ……………………………… 16Job Accidents ……………………………………… 16

UNGC-related activities …………………… 17Events on the CSR Month ………………… 17TOPCON GROUP Environmental Vision 2020 ……………… 17Environmental Impact of the TOPCON GROUP （FY2012） …… 18Environmental Impact Caused by TOPCON HQ （FY2012） ………………… 18Efforts for Reducing the Environmental Impact ………………… 19Participation in community ……………… 20

Joining Forces with Our Stakeholders …… 01

Third-Party Opinion …………………………………… 22In Response to the Third-Party Opinion … 22

Joining Forces with Our Stakeholders

The TOPCON Group has endeavored to convey information about corpo-rate social responsibilities （CSR） to all our stakeholders since the group renovated conventional environment reports into a CSR report in 2006.The current report, the eighth edition, features the group’s social contribu-tion through its corporate activities based on the TOPCON WAY.As a participant in the UN Global

Compact （GC）, the TOPCON Group is required to present an annual “Com-munication on Progress （COP）” report, in which a company describes how it deals with the 10 Principles of the GC

（in the areas of human rights, labor, the environment, and anti-corruption, as mentioned on page 17）. The CSR Report 2012 is designed to serve as a COP report.

● Report PeriodThis CSR report mainly covers our activities for the period from April 1, 2012 to March 31, 2013.

● Scope of the ReportBasically, this CSR report describes the activities and achievements of the en-tire TOPCON Group, except where specifically noted otherwise.

● Date of PublicationMay 2013 （Previous issue: June 2012）

● Guidelines Used as ReferencesISO26000 “Guidance on social responsibility”Global Reporting Initiative （GRI） G3.1 GuidelinesEnvironment Reporting Guidelines 2012 from the Ministry of the Environment of Japan

※ We selected easy-to-read colors and character fonts for those who have problems in color recognition.

▶TOPCON GROUP

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）

Company Overview

CSR Activity Report

CSR Managem

ent ReportCSR M

ind

TOPCON GROUPCSR Report

2 0 1 3

▶Consolidated Sales ▶Operating Income, Net Income ▶Sales by Region

Operating IncomeNet Income

－120

－80

－40

0

40

80

－69－69

1414 1717 2020

-36-36

5252

55－12－12

11

－99－99

（FY）2008 2009 2010 2011 2012

（100 million yen）（100 million yen）

－200

－100

0

100

200

300

400

SIC298

POC378 ECC

310

Others92Eliminations &Corporate items

－106

Net Sales97.2

billion yen

S I C：Smart Infrastructure CompanyPOC：Positioning CompanyECC：Eye Care Company

Japan246

North America201Europe

212

China77

Asia andOceania

　　　　　132

Others　103

（100 million yen）Less than 100 million yen omission

Financial Information

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 Code of Business Conduct, the TOPCON Group makes every effort to cultivate a relationship of trust with our stockholders and other stakeholders by disclosing appropriate and timely information in accordance with laws and regulations stipulated by the stock exchange.

● In April 2011, The Management Vision, Management Policy and Business Con-duct Guidelines were integrated and rearranged into the “TOPCON WAY”, a newly-defined fundamental principle of the TOPCON Group

http://www.topcon.co.jp/en/corporate/philosophy/ (“TOPCON WAY”)

● This CSR Report 2013 and previous CSR reports in PDF format, as well as addi-tional environment-related information not covered in the CSR reports, Code of Business Conduct and CSR Policy are available on the Social and Environmental Activities （CSR） page of our website.

http://global.topcon.com/csr/ (CSR) http://global.topcon.com/csr/code/index.html (TOPCON Code of Business Conduct)

http://global.topcon.com/csr/policy/index.html (Major policies of CSR)

● The Investor Relations page of our website provides information about stocks and financial performance, IR website award that TOPCON has received and so on.

http://global.topcon.com/invest/ (Investor Relations)

Award-Winning Websites

◆ Corporate nameTOPCON CORPORATION

◆ EstablishedSeptember 1,1932

◆ Location of the head office75-1, Hasunuma-cho, Itabashi-ku, Tokyo

◆ PresidentNorio Uchida

◆ Capital16,638 million yen (as of March 31,2013)

◆ Consolidated subsidiaries9 domestic and 50 overseas companies (as of March 31,2012)

◆ Number of employees3,981 (consolidated; as of March 31,2013)

◆ BusinessSmart Infrastructure （Surveying instruments, 3D measurement, Mobile mapping system）, Positioning （GPS, Machine control system, Precision agriculture）, Eye Care （Ophthalmic instruments, Optometric instruments）

◆ Major international CSR-related charters TOPCON supportsUnited Nations Global Compact

NORTH AMERICA13 companies（828 employees）

EUROPE20 companies（655 employees）

ASIA & OCEANIA14 companies

（Including 1 company in Middle East）（258 employees）

JAPAN10 companies

（1,654 employees）

CHINA3 companies

（586 employees）

02TOPCON Group Corporate Social Responsibility Report 2013

Environmentalprotection,plant tours, andlinkage for local revitalization

Providing productsand services

Observing laws andregulations

Public informationdisclosure,dividend distribution,governance, etc.

Third-party opinions,cooperative works

Specifying materialprocurement policies and

promoting SCM

Skill development,fair evaluation,safety, health, etc.

Localcommunity Employees

SuppliersStockholders

&investors

NPOs&

citizen groups

Consumers&

customers

National andlocal

administrationExhibitions,

academic conferences,publications,call centers

Legal documentsSupport for environmentaladministration

Stockholder newslettersIR magazines

Support foractivities,informationexchanges

CSR INFO-LINKTOPCON Code ofBusiness Conduct

Support forlocal events

RoHScomplianceassurancesystems

TOPCONGROUP

Basic policy for CSRTOPCON 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, support and implement the rules and regulations that are globally approved regarding Human Rights, Labor Standards, Environment and/or Anti-Corruption as declared in THE GLOBAL COMPACT.

TOPCON will make a social contribution voluntarily and actively through developments, production, sales and services of useful products.

TOPCON will promote an environmental management through the creation of environmentally-conscious business process and through providing with environmentally-conscious products and services.

TOPCON will strive to establish CSR activities in every officer and employee’s daily work and to infiltrate and establish them within global TOPCON group companies

TOPCON will acquire understanding and earn the trust of all the stakeholders of TOPCON group companies by providing with information actively.

123

56

4

CSR MindBased on the basic policy for CSR, the TOPCON Group offers products and services that will help address social challeng-es. At the same time, the TOPCON Group attaches great importance to communications with its stakeholders and endeavors to make social contributions through its business activities.

Relationship between Stakeholders and the TOPCON GROUP Structure of Promoting CSR Overview of Corporate Governance,

Internal control, Risk-compliance

Company’s Committees

TOPCON CSR Committee

Export Control programs

Welfare committee

Information Security

committee

Safety and health

committee

BCP committee

Environmental Protection committee

Gender equal

society

Risk-Compliance committee

Global Environment Conference

QS committee

CS activity

Employment of persons with disabilities

Social Contributions Activities

Environment Quality assurance

Customer satisfaction

Human rights and employee satisfaction

Social contribution

【CSR,Risk-Conpliance】

Linkage

President

Committee members （Heads of each division）

Chairman of TOPCON CSR Committee （Executive Officers in charge of CSR）

Corporate Governance PriniplesCorporate Governance

Secretariat: （Div. in charge of CSR）

【Internal control】Corporate Auditor, Corporate Audit Div., Compliance program audit by each corporate staff department※ Compliant with the board resolution “Establishing an organization for maintaining the appropriateness of business practices

【Corporate culture, based on our corporate vision and code of conduct】TOPCON WAY “TOPCON WAY” Promotion CommitteeTOPCON Code of Business Conduct Risk-Compliance hot-line

In June 2012, the TOPCON Group reorganized its business units into three internal companies for the purpose of “accelerating business decisions by clari-fying responsibilities of each internal company.” The business “Reform” project started in 2011 has achieved its goal one year earlier than we expected and we announced the completion of the project at the end of March 2013. We will, however, still con-tinue reforms in the course of our normal operations.

Aim to be a Truly Global, Truly Excellent CompanyBy accelerating the Enhancement of the business, the TOPCON Group will generate profit and cash flows and endeavor to stay ahead of our competi-tors. We will also advance reforms in the corporate culture to achieve profitable sustainable growth on the basis of the TOPCON WAY.

In addition, We will further promote our TM-1 （Time to Market No.1） activities and follow the fundamen-tal principle of the manufacturing industry, “focusing on monozukuri （craftsmanship）,” in order to become a global and excellent company in a true sense that is backed with a global competitive edge.

Social contribution based on TOPCON WAYWith its corporate policy of harmonious coexistence with the society, the TOPCON Group is committed to conserving the global environment, promoting CSR activities, establishing corporate governance structure and reinforcing compliance activities.The TOPCON WAY, established in 2011 as a man-agement vision shared by all the global group com-panies, has identified the sense of values cultivated in the TOPCON Group and its uniqueness that must

be maintained. We have set it as a guidepost for promoting CSR-based management.

Respecting the Global Compact policiesThe TOPCON Group assented to the ten principles of the UN Global Compact in 2007 regarding human rights, the environment, labor and anti-corruption and has incorporated them into the group’s strate-gies, culture and day-to-day operations. In addition, we have also reflected those principles in the TOP-CON WAY so that we can contribute to the sustain-able growth of the international market.We, the TOPCON Group, will endeavor to enhance its corporate value, satisfy the confidence of our stakeholders, and continue profitable sustainable growth. We would be grateful for your further sup-port and cooperation.

In addition to the CSR reports and our websites, the TOPCON Group utilizes various

channels of communication, as described above.

TOPCON CORPORATION, President

Topcon studies the possibilities of “light,” creates new values toward the future, and contributes to build a rich human society.

The Corporate Governance Principles（excerpted）● Definition of Corporate Governance

TOPCON’s definition of “corporate governance” is a corporate system in which 1） the board of directors appointed by stockholders decides on the basic man-agement policy, the matters provided in laws and the articles of incorporation as well as on other matters of importance regarding management; 2） the board of directors supervises the business practices that executives perform using management resources; and 3） the board of corporate auditors supervises and monitors these corporate business practices. At TOPCON, “corporate gover-nance” is viewed as a framework designed to let the company exhibit its best performance whilst keeping the corporate system and order.

● Basic Ideas on Corporate Governance1） The directors and corporate auditors take responsibility for corporate gover-

nance practices of TOPCON. All stakeholders are involved in corporate gover-nance, including stockholders, customers, business partners and employees.

2） TOPCON continually improves its corporate governance; observes corporate ethics and acts with integrity; endeavors to increase corporate value inces-santly; and enhance the soundness and transparency of management.

● Missions of the Company Organizations（Omitted）● Relationships with Stakeholders（Omitted）● Internal Control（Omitted） ● Information Disclosure （Omitted）

Key Committees Key RegulationsTOPCON CSR Committee Basic policy for CSR

Risk-Compliance committee Basic regulation for Risk ComplianceBCP committee BCP Basic policy

Information Security committee Basic Regulation for Information Security,Basic Regulation for Personal Information ProtectionSafety and health committee Basic regulation for Safety and Hygiene

Global Environment Conference/Environmental Protection committee Basic regulations about environmental protectionQS committee Basic Policies for Total Quality Assurance

Participation in the UN Global Compact in October,2007

http://global.topcon.com/invest/strategy/governance/ （Corporate Governance）

Observing laws and

regulations

03 TOPCON Group Corporate Social Responsibility Report 2013 04TOPCON Group Corporate Social Responsibility Report 2013

Message from the President

Items Key Goals and Plans for FY2012 Key Achievements in FY2012 ※ Key Goals and Plans for FY2013 Comparison with GC Ten Principles

Corporate Governance

● Disseminating the Corporate Governance Principles● Holding seminars on the Corporate Governance Principles and CSR

● Education for managers was carried out according to plan● Education was carried out according to plan● Held a training session to the executives ○

● Disseminating the Corporate Governance Principles（Continued）● Holding seminars on the Corporate Governance Principles and CSR

education program（Continued） Principle 1 to 10

● Disseminating the reference leaflet on TOPCON Code of Business Conduct across the TOPCON Group

● Posted on the Risk-Compliance Bulletin Board to keep everyone informed

● Ratification of TOPCON Code of Business Conduct（revised ver.） in the all group companies

Risk Compliance

● Reviewing the BCP according to the changes in social conditions ● Reviewed the Business Continuity Plan （BCP） from the viewpoint of product supplies （ensuring availability of parts inventory, reviewing products to be manufactured continuously, sorting out suppliers, etc.）

● Further expanded the emergency stockpile （food and beverage）

○

● Reviewing the BCP according to the changes in social conditions（Continued）

Principle 1, 6

● Improvement of employment rate for persons with disabilities；1.8%● Reviewing the contents and continuing the Risk-Compliance seminars● Establishing a SNS （Social Networking Service） guideline

● Achieved the number of employees with disabilities required by laws● Reviewed the contents and updated the educational content● Considering a SNS guideline

● Employment rate of persons with disabilities: 2.0% （complying with legal requirements）

● Reviewing the contents of the Risk-Compliance seminars（Continued）● Establishing SNS guidelines and reviewing them in a timely manner

● Holding topic-by-topic compliance seminars ● Held the seminars according to plan ● Holding topic-by-topic compliance seminars （Continued）

Responsibilities to Customers

● Developing and releasing new products through promotion of TM-1activities

● Conducted the Technology/Quality innovation project to shorten development times and improve quality

○

● Developing and releasing new products through promotion of TM-1activities （Continued）

Principle 1

● Improving the total quality assurance system across group companies

● Promoted awareness of prioritizing the quality through the Technology/Quality Month or other quality forums

● Improving the total quality assurance system across group companies （Continued）

● Improving pre-verification capabilities in upper stream and prevention of quality problems

● Conducted Technology/Quality innovation project to strengthen the pre-verification and the design review

● Improving pre-verification capabilities in upper stream and preventing quality problems （Continued）

● Promoting prompt feedback of customer information ● Sped up the feedback of quality information from call centers and group companies

● Promoting prompt feedback of customer information （Continued）

Responsibilities to Business Partners

● Further extending applications of the RoHS compliance assurance system to overseas suppliers（4 suppliers）

● Conducted as planned 4 suppliers （4 companies in second half of FY2012） ○ ● Revising green procurement standards to ensure that suppliers

appropriately manage chemical substancesPrinciple

1, 2

Responsibilities to Employees

● Measures for reducing metabolic syndrome cases （special health maintenance guidance, in-house plans）

● Conducted measures for reducing metabolic syndrome cases as planned

○

● Measures for reducing metabolic syndrome cases（Continued）

Principle 2, 3

● Continuing no-smoking programs ● Achieved smoking rate ＝ 26.7% （3.6% decrease from FY2011） ● Continuing no-smoking programs（Continued）● Strengthening cooperation in safety and health matters with group

companies and improving management levels● Disseminated the important items related to health and safety ● Strengthening cooperation in safety and health matters with group

companies and improving management levels （Continued）● Continual improvement of the personnel system ● Changed working hours because of introduction of daylight saving time ● Continual improvement of the personnel system（Continued）

Responsibilities to International and Local Communities

● Providing environmentally conscious and resource-saving products, and products and services useful for improving medical care, health care and life in general

● Provided products that would help address social issues （reconstruction of the areas affected by the Great East Japan Earthquake, population aging, resource depletion）

○

● Continued

Principle 1, 7, 8, 9

● International volunteer assistance ● Conducted as planned ● Continued● Assisting of medical and academic institutes （product donation and sponsor seminars）

● Conducted as planned ● Continued

Enforcing Environment

Management System

● Review the audited, and implementation of the audit ● Company subject to audit was changed into a factory and a company with many employees In fiscal 2012, 7 group companies underwent the survey and revealed no problems regarding the level of control.

○● Further implementation of continuous audit

Providing Environmentally Conscious Products

and Services

● Further improvement of providing environmentally conscious products

● Provided environmentally conscious products 85.3% of sales（Target achievement） ○

● Further improvement of providing environmentally conscious products（Continued）

Establishing Environmentally

Conscience Business Processes

● Implementation of measures against global warming （Reduction in CO2emissions）6.0% reduction from the previous fiscal year

（to comply with Tokyo metropolitan ordinance）

● 31.8% reduction from FY2011（Target achieved）

○

● Implementation of measures against global warming （Reduction in CO₂ emissions）6.5% reduction from the previous year

（to comply with Tokyo metropolitan ordinance）● Effective use of resources

Continuing zero-emission efforts （Less than the previous fiscal year）● Continuing zero-emission efforts （Increase in emissions；13%） ● Continued

● Management of chemical substancesStrengthening central management

（Using less chemical substances than the previous year）

● Use of organic solvents: 45% reduction （1,409kg） ● Continued

Promoting Environmental

Communication

● Strengthening of cooperation with administration and local residents ● Held local contribution activities○

● Strengthening of cooperation with administration and local residents（Continued）

Responsibilities to Stockholders and Investors

● Providing information to stockholders and investors● Maintaining external evaluations and increasing analyst coverage

● Improved in Web content● Decreased in analyst coverage（4 to 3 firms） ○

● Providing information to stockholders and investors● Maintaining external evaluations and increasing analyst coverage（Continued）

Principle 1

Communication

● Issuing TOPCON GROUP CSR Report ● Issued TOPCON GROUP CSR Report according to plan

○

● Issuing TOPCON GROUP CSR Report （Continued）● Issuing group media of CSR （CSR INFO-LINK） ● Continued publication ● Issuing the CSR information （CSR INFO-LINK） （Continued）● Participating in the GC-JN working group （CSR Report, etc.） ● Participated in the GC-JN working group ● Reviewing subcommittees the group will join● 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）● Social contribution activities in collaboration with NPOs ● Cooperated with NPOs specialized in social contributions and labor issues ● Social contribution activities in collaboration with NPOs（Continued）

※ 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.”

◆ The CSR Report for fiscal 2010 actually started the reporting of targets and plans as well as the individual items of CSR activities by the TOPCON Group.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 2012.

◆ General Overview of the CSR Activities in 2012In fiscal 2012, we managed well to achieve the targets. In particular, for the employment rate of people with disabilities in the Risk Compliance area, to which we had to give the failing “△” mark in the last year’s report, and the environmental auditing, to which we had to give the failing “×” mark, we put particular emphasis and re-set goals.We modified the goal from the em-ployment rate to the number of people with disabilities actually employed, and also modified the goal for the envi-ronmental auditing to the implementa-tion of document-based auditing. As a result, we have given both of them the passing “○” mark in the current report.This is the first time all items are evalu-ated as “○” since we started evaluat-ing our activities.We will further reinforce our efforts so that we can give some of the items the

“excellent” mark （◎）.

※ （“TOPCON WAY”）In April 2011, the TOPCON Group estab-l ished the “TOPCON WAY” as a newly-defined fundamental principle by integrating and rearranging the conventional Manage-ment Vision, Management Policy, and Busi-ness Conduct Guidelines. The purpose is to allow each employee in the group to imple-ment the TOPCON WAY concept so that they can obtain understanding and trust of all stakeholders.

General Overview of the CSR Activities in 2012

Comments from the Chairman of the CSR Committee

The role of the TOPCON CSR Committee is to review and evaluate year-by-year achievements regarding our CSR activities, and to set goals and plans for the next year. In fiscal 2012, we particularly focused on the BCP, employment of people with disabilities, and environmental auditing of group companies.

The Targets and Achievements of CSR

05 TOPCON Group Corporate Social Responsibility Report 2013 06TOPCON Group Corporate Social Responsibility Report 2013

CSR Mind Topcon studies the possibilities of “light,” creates new values toward the future, and contributes to build a rich human society.

TOPCON INSTRUMENTS （THAILAND） CO., LTD. provided the informa-tion and demonstration on new technology of TOPCON products which would support to future Thailand royal project for settlement of irrigation system.

Contribution to society through business activities based on the TOPCON WAY

The TOPCON Group creates new values toward the future, and contributes to build a rich human society as in the TOPCON WAY. We introduce some of the TOPCON Group activities so-called CSV

（Creating Shared Value） that create values for both society and the TOPCON Group as special feature in the CSR Report 2013.

T P S p r o v i d e d 3 D Mach i ne Con t ro l systems training for s tudents who are working on a Heavy E q u i p m e n t O p -eration. 3D-Machine

Control systems are becoming an integral part of the construction business. They learned not only hands-on training but also a theoretical overview of 3D-MC through the lessons. TPS has been a long supporter of the school. Approximately 30 West Hills students and instructors re-ceived this training.

Topcon Positioning Systems, Inc. （“TPS”） and its Peruvian dealer, Geincor, made donation of Laser equipment and funds （$ 10,000）, for the building of five houses in Peru for the Peruvian Home Building Project. The project is

an initiative of the Proyecto Peruanos organization that constructs houses for people living on extremely limited resources. University stu-dents, young professionals and professors whose goal was to instill a sense of indi-

vidual responsibility and generate an awareness of those in need throughout the country, devised the program. The donation includes support and training by Topcon-trained technicians.

Supporting Peruvian Home Building Project

TPS, in conjunction with three other companies, has de-veloped a remote control machine - an autonomous fork-lift - designed to enter buildings following earthquakes to determine damage, plus move obstacles and even goods

for market up to 2,200 pounds （1,000kg）, for both life-saving and economy-saving missions.

Precision Agriculture using the automation and informa-tion technology improves the farm operation, increases agricultural productivity, and reduces environmental load and operating costs. Topcon’s precision agriculture prod-uct “Crop Spec” is a real-time integrated crop monitoring product, and allows the user to monitor in-field variability, and to keep data for future analysis or prescription appli-

cation. The sensor of Crop Spec, which is based on Topcon’s op-tical technology, measures plant

reflectance to deter-mine chlorophyll con-tent, which is closely related to the nitrogen concentration in the leaf. The research using Crop Spec was evaluated as the “promo-tion project” at the Hokkaido Agriculture Evaluation Conference lead by the local government agency.

Continued support to One SightTopcon Medical Systems, Inc. （“TMS”）, a group member in the United States, has continuously engaged in the “One Sight” program hosted by Luxottica Group Foundation. This is a family of charitable programs ded-icated to improving vision for those in need through outreach, research and education. In the Summer of 2012, TMS donated equipment and employee volun-teers to support the combined mission of One Sight and the Fresh Air Fund to provide free eye exams and glasses to needy children attending summer camps through the Fresh Air Fund.

Partnership with United Kingdom based COYOTOPCON POSITIONING COMPANY （POC）, one of three internal companies center-ing on TPS and Topcon Europe Positioning B.V., has entered into a strategic part-nership with Class of Your Own organization （COYO）. They have been working to-gether since last summer to provide “best in class” teaching experiences in the area of surveying and precise positioning for secondary students. COYO provides design, survey, engineering and construction project-based curriculum materials.

CropSpec

Hands-on training

Portable Optometry Vehicle

State of the ophthalmic examination

A scene of learning

Providing training for students of West Hills Community College

A scene of learning

Crop Spec - Increase Agricultural Productivity Measurement work （image）

prescription maps

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 continually striving to be a trustworthy partner to all stakeholders.

Topcon will do its utmost to improve quality in all stages from development and design 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 re-spect 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 standards 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 man-ner, 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 values, decision-making criteria and overriding principles that all executives and employees of the TOPCON Group share beyond the national and corporate boundaries.

● Clause 1 defines the principle of our existence; Clause 2 clarifies the prerequisite for our existence; 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, ultraviolet rays and X rays.

Topcon technologies supporting companies affected by earthquake

Providing experience learning to Irrigation School

07 TOPCON Group Corporate Social Responsibility Report 2013 08TOPCON Group Corporate Social Responsibility Report 2013

Special Feature

The TOPCON Group is making efforts to observe and dis-seminate the concept of Corporate Governance, based on our Corporate Governance Principles （established in 2011）, for the purpose of performing and supervising

From the spirit of innovation for taking changes in ad-vance and the concept of values of top priority on compli-ance, the TOPCON Group takes it for granted to observe laws and regulations and also endeavors to take appro-priate action in all other social and ethical standards.We have made ongoing efforts to promote awareness on compliance throughout the TOPCON Group. Last year we enhanced and updated the information listed in the Risk-Compliance Bulletin Board of the in-house database, and

The TOPCON group established a Risk-Compliance hot-line in 2006 to detect （and correct） any risk-compliance information as early as possible. The information can be defined as information regarding any action prohibited by the laws and in-house regulations, an action against the conventional wisdom, or an action implying such uncer-tainty.This is a special reporting line which is independent from the regular reporting line. Any risk-compliance related in-

corporate business practices appropriately, thus staying to be a company always beneficial to the society. The fol-lowing are examples of our major activities for that pur-pose:

provided compliance training based on the Q&A form.After reviewing the curricula of programs, we also con-ducted two forms of training: “risk compliance training for the post of managers” and “compliance training for new employees.” The TOPCON Group’s headquarters and Japanese domestic group companies were given another type of training, “compliance training for sales people,” targeted to the post of sales working at the forefront of sales activities.

formation can be directly reported to the responsible de-partment （Corporate Audit Division） by means of e-mails or phone calls.In fiscal 2012, the Risk-Compliance hot-line involved no cases of consulting.In fact, seven Japanese group companies each have a similar system, making it possible to work together to promote compliance management.

We incorporate Corporate Governance principles into the employee training programs to help reinforce the con-sciousness of management vision and ensure compliance with rules regarding business practices.

Last year, the TOPCON Group reorganized itself from the conventional business unit-based organization into a company-based one. The TOPCON Group now has three internal companies, “Smart Infrastructure Company,” “Posi-tioning Company” and “Eye Care Company,” based on their business and geographical locations. In addition, we have established a “Corporate Strategy Division,” which controls 3 internal companies cross-sectionally.

We would like to aim at increasing our corporate values enduringly and raising the efficiency and transparency of management. Specifically, plans call for building and oper-ating an internal control system on a group-wide basis so

The TOPCON Group has set forth the Business Continuity Plan （BCP） based on the above basic policies. In the latest revision, we reviewed products to be manufactured con-tinuously, ensured the availability of parts inventory, sorted out suppliers and expanded the emergency stockpile （food

and beverage）. We will further review the BCP by expand-ing the scope of measures considering a possible metro-politan inland earthquake and new strains of influenza for which pandemic is feared.

In addition to the periodical fire and disaster drills re-quired by the Fire Defense Law, our training includes other emergency drills, including AED operation training and drills for setting up an emergency task force as well as the testing of the quake resistance of store fixtures by external specialists.

This reorganization mainly aims at accelerating business decisions by substantially delegating authority to each internal company. It, however, strongly requires clarifying the management responsibilities of each internal company. The TOPCON Group is now making every effort to deter-mine appropriate actions to further improve and promote Corporate Governance.

that we will be evaluated as a highly reliable company by all the stakeholders. Plans also call for disseminating the Corporate Governance principles among the entire of the TOPCON Group.

To improve the effectiveness of business management and the transparency of decision making by the board of directors, we have one outside Corporate Auditor who meets the “Independent Executive” requirement stipu-lated by the Tokyo Stock Exchange.

Field auditing was conducted at TOPCON headquarters and its domestic group companies, and a total of 35 companies in and outside of Japan conduct an “internal control self-evaluation” using a checklist.In fiscal 2012, we reviewed the questions and modified the system to require evidences for answers, to improve the accuracy of answers from each group company.As a result, the overall score for the establishment of in-ternal controls was 93%, 3points up from the last fiscal year.

Those group companies requiring improvement were given a list of improvement items. They are undergoing specific guidance to improve their internal controls. In addition, we informed each group company of the re-sults of its evaluation for past three years as well as the points requiring improvement to encourage them to im-prove their internal controls as early as possible.In the future as well, monitoring will be continued to build a better environment of internal control for the TOPCON Group.

Holding Seminars for Employees

Establishing a Company-based OrganizationReviewing the Business Continuity Plan （BCP）

Conducting Various Disaster Drills

Election of Outside Auditor

Testing the quake resistance of store fixtures

Training for the operation of AED

Fire and disaster drills

BCP Basic Policy

1 TOPCON will give priority to safety and relief of employees and their families.

2 TOPCON will fulfill the responsibility for supply of the products to customers.

3 TOPCON will support the instauration and the restoration of the community and customers.

4 TOPCON will aim at an early restoration of business and minimize the adverse effects on management.

Disseminating Corporate Governance

Addressing Risk-Compliance issues

Risk-Compliance Hot-line

Internal Auditing of TOPCON Group

Other Risk Countermeasures

CSR Management Report

09 TOPCON Group Corporate Social Responsibility Report 2013

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.

10TOPCON Group Corporate Social Responsibility Report 2013

http://www.topcon.co.jp/en/material/ （International Procurement） http://www.topcon.co.jp/en/privacy/ （Privacy Policy）

http://www.topcon.co.jp/en/corporate/quality/ （Quality Assurance Activities）

Information Security and Personal Information Protection

Joint Activities with Procurement Partners

We are conducting ongoing quality improvement activities so that our customers can use all of TOPCON products at their ease. In addition to preventing any defects from recurring, we have been promoting a technology/quality innovation project to proactively prevent defects from oc-curring in upstream product development processes.We estimate the possibility of a problem that may oc-

The TOPCON Group, with its overseas sales ratio of higher than 70%, aims at “strengthening a global export control system.” Should any one of its group companies conduct an inappropriate export, or any of its products or advanced technologies be passed to terrorists or other undesirable customers, even through domestic sales channels, the worst case would be an accused violation of applicable export management laws. Such a situation

would cause the TOPCON Group to lose all business op-portunities with overseas customers, possibly affecting the group’s continued existence as a corporation.It would also strictly be accused of violating security from the viewpoint of “Maintaining international piece and safety.”To achieve the goal of “strengthening a global export con-trol system,” the TOPCON Group is making the following efforts specifically:

When determining our business partners, the TOPCON Group follows a comprehensive and objective evaluation procedure, involving the following aspects: the assured-ness of quality, pricing, and delivery date; level of technol-ogy, stability of management, and consideration of the

cur when a product is being used, from the viewpoint of the customer, and manufacture the product so that any estimated problem will not occur. The “TOPCON Tech-nology/Quality Month” in November included the holding of in-house events （including presentation of examples of quality innovation and seminars by invited specialists） to raise technology improvement and quality-first awareness.

environment. In the course of transactions, we are making efforts to maintain and promote the trust relationships for coexistence and co-prosperity with our partners, through providing information and communicating with them.

On October 29, 2012, we held a briefing session on our manufacturing poli-cies for the purpose of helping our procurement partners understand our policies more deeply and give us cooperation when implementing the poli-cies. With the participation of 162 people from 97 companies, the session covered the briefing of our manufacturing and procurement policies through our president etc.

To ensure compliance with the environmental laws for products, we reviewed the criteria for evaluating partners focusing on management of chemical substances. We gave appropriate advice to partners requiring improve-

ment. In the future, the TOPCON Group will choose to es-tablish partnership with companies highly rated regarding chemical substance management.

We made a presentation of quality innovation examples in the product development process and the manufactur-ing process to develop the quality improvement activities cross-sectionally within the group companies. To raise the quality awareness of all employees with the participation of top management people, we shared a wide range of examples occurring at all stages from the upper to lower

We held seminars by invited specialists regarding “Commitment to the re-form of monozukuri manufacturing.” The seminars motivated employees to improve quality by introducing some actual examples of reform the product development process.

◆ From October 2012 to February 2013, we provid-ed the regular compliance trainings for all employees at the TOPCON headquarters and eight Japanese domestic group companies to raise their awareness of information security and personal infor-mation protection. The participation rate was nearly 100%.

◆ From November 2012 to March 2013, in the TOPCON headquarters and the Japanese domestic group companies, in-house au-ditors conducted internal audits of the selected depart-ments for the purpose of maintaining and improving their levels of information security management.

◆ The TOPCON headquarters held information security seminars focused on “security of smartphones” by invit-ing external specialists. In those seminars, employees learned and deepened the understanding of a growing threat to smartphones, their secure usage and the secu-rity mechanisms employed in their operating systems.

◆ The TOPCON Group implements technical measures for information security so that the utilization and pro-tection of information can be balanced.

Security diagnosis by specialistsIn view of an increasing number of cyber attacks to com-panies and other organizations, we received security diag-nosis by information security specialists on a system that connects the Internet with the domestic TOPCON Group network, for the second time following the last year. The diagnosis has revealed that our system is at a suitable se-curity level.

◆ We will still continue to promote the following measures:● Protection against cyber attacks● Expanding the target range of vulnerability diagnosis● Prevention of illegal connection from PC and other

devices by implementing device authentication

stream: such as improving design quality, quality improve-ment in the production process, and product evaluation from the cus-tomer point of view.

Managing Relationship Focusing on the Management of Chemical Substances

Presenting Examples of Quality Innovation

Seminars by Invited Specialists

Information Security Management Technical Measures for Information Security

1 Conducting export control auditsTo determine that export control is being carried out properly, all

departments involved in export activities in the TOPCON headquarters are audited internally every year.After the audit, periodical checks are performed regarding the improve-ment items identified during the audit and follow-up support is provided to ensure they will no longer be issues when audited in the following year. In addition, the domestic and overseas group companies are also audited on a yearly basis to maintain and strengthen their local export control sys-tems, as well as providing appropriate training for the local staff.Cases are increasing where overseas group companies purchase products directly from affiliated manufacturing/sales companies in the US without the intervention of the headquarters. As such cases cannot be covered by con-ventional audits under the control of the headquarters, we started in fiscal 2012 to audit overseas group companies jointly with in-house lawyers of a US group company specialized in US laws. In November 2012, persons in charge of export control from both Japan and the US carried out audits for a group company located in the UAE to reinforce its export control system. We will further promote these efforts to strengthen our global export control system.

2 Providing export control educationsIn order to raise compliance awareness, the TOPCON Group pe-

riodically carries out export control educations for new employees, as well as those in the sales and engineering departments and those in charge of export, by gathering about 120 employees in fiscal 2012. We also provide trainings for all employees who are to work outside of Ja-pan to raise the awareness of their future leadership expected in export control procedures to be performed in the region where they will work.

3 Training export control specialistsTo improve the expertise of employees involved in export control,

the TOPCON Group recommends taking “Certification exam on export control” held by the Center of Information on Security Trade Control

（CISTEC）. In fiscal 2012, we achieved the goal of 55 employees quali-fied for the above certification, although we estimated the goal to be achieved in fiscal 2013. We are now actively making efforts to further increase that number.

4 Periodically holding export control promotion meetings

To share information about major global trends and the situation of export control within the TOPCON Group, we periodically hold export control promotion meetings to raise the awareness of employees within the group. In fiscal 2012, the sales and engineering departments held such meetings four times.

5 Regions requiring special controlExport control is closely linked with international affairs, including

suspected nuclear development in Iran, underground nuclear testing and missile launches in North Korea, and suspected use of chemical weapons in Syria. The TOPCON Group’s program specifies six regions as “requiring special control,” including Iran, Iraq, Cuba, Syria, （North） Sudan and North Korea, for which the Foreign Exchange and Foreign Trade Control Law of Japan and relevant US laws require special regu-lations, and strictly controls any potential export to those regions.We will further strengthen our export control system to achieve the highest quality of the system.

Number of participantsTOPCON 862employeesGROUP Companies 713employeesTOPCON GROUP Total 1,575employees

Number of the Departments AuditedTOPCON 15dept.GROUP Companies 25dept.TOPCON GROUP Total 40dept.

Topcon will do its utmost to improve quality in all stages from development and design 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.

Seminars by invited specialists

briefing sessions on manufacturing policies

Strengthening a global export control system Quality Improvement Activities

Holding briefing sessions on manufacturing policies

CSR Management Report

11 TOPCON Group Corporate Social Responsibility Report 2013

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.

12TOPCON Group Corporate Social Responsibility Report 2013

Labor Union

While respecting the diversity of people as to their nationali-ty, human race, religion, age, gender, and value, the TOPCON Group has worked on establishing and maintaining a person-nel system that provides fair appreciation of and treatment to employees according to their abilities and performance.In recent years, we have offered various support pro-grams diversifying lifestyles of employees. Our programs include a two-year childcare leave, a short-time work system, which is available until a child finishes the third grade at elementary school, and a child nursing leave sys-tem. Those leave systems help employees to balance the work and home life or find a better work-life balance.Additionally, we consider it important not only to place the right people in the right jobs but also respect the ea-gerness and motivation of employees in order to make the best use of their creativity and professional expertise.To this end, the TOPCON Group has been striving to cre-

ate an environment that makes employees feel proud and motivated, such as a free agent （FA） system and a job posting system.To help employees with disabilities manifest their abili-ties, we have defined work assignments according to the degree of disability, made wheelchair-accessible ramps, and paid attention to their means of commutation.In fiscal 2012, the TOPCON Group actively employed people with disabilities and thus achieved the require-ment by laws in terms of the number of disabled em-ployees. To satisfy the requirement on employment rate which was revised this year （2.0%）, we will further pro-mote the employment of people with disabilities while improving the working environment to help them, also including Japanese domestic group companies with an employment rate lower than the requirement （only those companies with 50 or more full-time employees）

＊ ： The TOPCON Group’s Major Measures for Raising the Employment Rate

● Staff recruitment through the job-placement office● Regular participation in job interviews hosted by

job-placement offices and employment supporting companies

▶Total and overtime working hours of employees （TOPCON Headquarter only）FY2010 FY2011 FY2012

Total working hours（per capita） 2,042hours 2,000hours 2,026hoursOvertime working hours（per capita） 233hours 210hours 215hours

training for manager training for mid-level employees

In April 2010, we drew up the TOPCON Group’s Human Resources Development Policy, which is to be shared by all the group companies, and declared a basic policy, centering on “the fostering of professionals and global hu-man resources.”The TOPCON Group respects employees’ uniqueness,

value, and spirits of creativity and innovation to encour-age them to show their best performance. To this end, we have been endeavoring to establish personnel systems including career development, cultivate an uninhibited corporate culture, and create a comfortable workplace environment where human rights are respected.

Personnel System

▶Number of Employees Who Applied for Various Job Support Systems (TOPCON Headquarter only)Name of support system Period / Qualification Y2008 Y2009 Y2010 Y2011 Y2012

Childcare Leave Till the end of the month in which a child reaches the age of 2 10 15 13 6 8Short-time Work Till a child finished the 3rd grade at elementary school 13 12 10 10 10Nursing Leave 1 year 1 1 0 0 0Re-Employment System Those who have retired at retirement age 15 18 14 10 10

Giving Support to Various Ways of Working

▶Educational SystemName of system Contents of education

Contents of education New employee training; mid-carrier training; low-level manager training; new-manager training, etc.By occupational qualification Specialized training in each department, such as engineer training, sales training and skill development trainingSelf-development assistance Foreign languages; in-house TOEIC tests, correspondence courses; license/qualification acquisition assistance, etc.

Risk-Compliance education TOPCON Code of Business Conduct; human rights; harassment; safety and health; environment; export control; information security, etc.

Dispatch to external organizations Next-generation leader development; overseas trainee system, etc.※We provided the above trainings for all employees who should take them.

TOPCON-Related Workers’ CooperativeThe workers’ cooperative was formed for the main purpose of encouraging the interchange between the labor unionists （and labor unions） working for TOP-CON manufacturing companies and improving the la-bor conditions of the entire of related labor unions.Their day-to-day operations aim to maintain the em-ployment conditions and to maintain and enhance the life stability and the real standard of living.

Name : TOPCON Labor Union

Representative : Executive Chairman, Akitomo Tazawa

Established : January 29, 1946

Form : Independent in-house union

Union member information : （as of April 1, 2013）1. Number of union members: 534（437 men and 97 women）2. Average age: 37.4 （Men: 37.6,Women: 36.4）3. Average length of service: 14.4 years

（Men: 14.6 years, Women: 13.5 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

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 opinions on specific issues or for the labor union to make representations to the company.

Major labor-management negotiation issues in fiscal 2012● Annual bonus● Annual holidays（calendar）● Introducing daylight saving time● Revising the continued employment system for

employees over 60● Transferring employees to affiliated companies

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, 2013）

Established : 1947Representative : Executive Chairman, Kazuya SuzukiNumber of union members : 193（131 men and 62 women）Average age : 39.0 （Men: 39.3, Women: 38.3）Average length of service : 18.3 years

（Men: 18.5, Women: 18.1）● OPTONEXUS Labor Union （as of April 1, 2013）

Established : 2003Representative : Executive Chairman, Yutaka YabukiNumber of union members : 160（73 men and 87 women）Average age : 45.8 （Men: 46.0, Women: 45.8）Average length of service : 24.5 years

（Men: 24.6, Women: 24.5）

TOPCON Group’s Human Resources Development Policy

Respect for the individual（TOPCON Code of Business Conduct）

http://global.topcon.com/csr/policy/policy_human.html （TOPCON Group’s Human Resources Development Policy）

1 The TOPCON Group provides opportunities for capacity building and self-realization to employees

with various skills and character traits to help them exer-cise their qualities to the fullest, placing human resourc-es as the most valuable assets.

2 The TOPCON Group fosters professionals and global human resources in a planned manner.

3 The TOPCON Group clearly defines desired employee charac-teristics （behavior traits and sense of values） and shares the

recognition with all employees.

4 Each TOPCON Group company develops human resource devel-opment systems and specific plans suitable for its own business

model and scale in accordance with the Human Resources Development Policy, and communicates them to all employees for implementation.

1 TOPCON will accept different values and respect the personality and

character from the standpoint of respect of human dignity, and give Employees etc. the opportunity for self-realization and cul-tivate their capability to the full.

2 TOPCON will fully comply with the laws and regulations and

respect basic human rights, and will not make any discriminatory treatment. TOPCON will never engage in child labor or forced labor.

3 TOCPON will develop an environ-ment where Employees etc. may

perform their duties creatively and efficiently and so that Employees may achieve the “work-life balance” （ideal balance between work and home）.

CSR Activity Report

13 TOPCON Group Corporate Social Responsibility Report 2013

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.

14TOPCON Group Corporate Social Responsibility Report 2013

▶Changes in Smoking RatesFY2010 FY2011 FY2012

Male 35.9% 30.7% 30.1%Female 11.6% 8.8% 5.1%Total 32.5% 27.7% 26.7%

▶Number of Work-Related Accidents, Severity Rates, Frequency Rate Per Working Hours and Main Cases

TOPCON HQFY 2012

Average of the Manufacturing Industry

FY2011/ More than 100 employee

Average of All Industries

FY2011/ More than 100 employee

Continuous accidentfree hours

Consecutive hours free of accidents resulting in fatalities or absences of 1 day or longer

Total 9,000

thousand hours— —

Severity rate

（Absence of 1 day or longer）

Percentage of serious accidents 0.00 0.08 0.11

Frequency rate per working hours

Number of dead and injured per million working hours 0.00 1.05 1.62

Frequency rate per 1,000 workers

Number of dead and injured per 1,000 workers per annum 0.00 2.70 2.10

（Note） Sources:The record of continuous accident-free hours, “Total nine million hours,” is the number as of the end of December 2012.Severity rate and frequency rate: Obtained from a website of the Ministry of Health, Labor and Welfare:

http://www.mhlw.go.jp/toukei/itiran/roudou/saigai/12/Frequency rate per 1,000 workers: Obtained from the “Office safety site” of the Ministry of Health, Labor and Welfare:

http://anzeninfo.mhlw.go.jp/information/h09_18_sen01.html

Cigarette smoke, which contains numerous toxic chemi-cals, is a major cause of serious diseases. To help em-ployees maintain and improve their health, the TOPCON Group drew up guidelines on smoking in workplace in 2008 and has since promoted no-smoking and smoking cessation programs.TOPCON has put emphasis on these programs since they will lead to a reduction in medical expenses in the future.◆ Targeting those who wanted to quit smoking, in fiscal

2012, we offered smoking cessation medicine for free under the direction of an in-house doctor at the com-pany clinic. They tried to give up smoking, and two of them succeeded in this fiscal year.

◆ In time with the “World No Tobacco Day” which is an annual even held by the WHO and took place on May 31, 2012, we set up a “Non-Smoking Promotion Week” to encourage employees to quit smoking.

◆ Other similar activities include the total smoking ban within the building （carried out in 2009） and the total ban of cigarette selling （carried out in 2010）, as well as an approach of requesting smokers to keep good man-ners when smoking.

◆ Emphasis is put on health promotion in daily life. We hold various events designed to help employees to have fun and get healthy. Ex-amples include a “Walking Campaign,” which encourages participants to walk 10,000 steps every day for three months; a “Walking Event”

（in 2012, carried out in the circular course from Tokyo Dome to Ueno Park）, which lets employees bring out their family members; and a “Get Slim” challenge, which urges peo-ple with metabolic syndrome to go on a diet.

◆ At the cafeteria, we offer low-calorie meals every day. The point is a set of healthy menus focusing on the approach of getting healthy from eating.

◆ Also, we have a blood pressure gauge and a body fat scale so that not only employees but also visitors can use them freely to check their health condition.

The TOPCON Group has been working on health care for all employees so that they can stay healthy, happy, and full of life, and can bring out their potential abilities at work.◆ To help employees improve their health, TOPCON

picks up those with high health risks after a regular physical checkup and have them have an interview with an in-house doctor to get advice on improving their life-styles.This interview has shown good results as it inspired some people to receive early treatment. Also, depend-ing on the result of a checkup, employees are removed from heavy-duty jobs or have their working hours lim-ited not to increase their heath risk any further.

◆ Together with Topcon Corporation’s health insurance association, we are actively carrying out the so-called specified health maintenance guidance advanced by the government. Lifestyle-related illnesses are chronic

In fiscal 2012, the TOPCON headquarters encountered two accidents at the workplace.

diseases that increase the risk of complications such as arterial sclerosis. The TOPCON Group has conducted the specified health maintenance guidance to help its employees improve their lifestyles.

◆ To prevent health problems brought on by overwork, the in-house doctor interviews the employees who have worked more overtime hours than a certain limit. If it has been determined as a result of the interview that working hours of an employee should be limited for the sake of health, the supervisor of him/her is di-rected to give due considerations.

◆ We have also been working on mental health issues, by having the in-house doctor keep close contact with outside doctors who take care of employees having mental health issue to share information. To prevent new mental cases, new managers are trained to recog-nize the signs of mental issues in early stages.

◆ Not only in-house health staffs provide mental health care; there is also a system that allows employees to have mental counseling sessions at external organiza-tions free of charge up to five times. Neither counselee’s name nor the contents are reported to us. Since em-ployees can take expert advice from experienced coun-selors, this system helps them address their worry or diminish mental distress.The number of counseling cases was increased to 31 in 2011 and 2 in 2012.

◆ Falling after having blood collected during a periodical health checkup （not causing absence from work）Falling while walking on a frozen road

（not causing absence from work）

Educational activities with exhibits

Walking Event

Measures for Smoking

Health Care

Special health-maintenance guidance

Health Promotion

Job Accidents

CSR Activity Report

15 TOPCON Group Corporate Social Responsibility Report 2013

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.

16TOPCON Group Corporate Social Responsibility Report 2013

To fulfill its social responsibility as a corporate group that offers products to the global market, the TOPCON Group has established its position concerning this important en-

vironmental issue and has declared its group-wide com-mitment to its Environmental Vision 2020, as follows.

The United Nations held a session of the World Economic 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 organi-zations around the world to support and implement the

globally established 10 Principles in the four areas: human rights, labor, the environment, and anti-corruption. Since joining the GC in October 2007, the TOPCON Group has incorporated the spirit of the 10 Principles into the TOPCON WAY and a variety of policies comprising the core of group management, such as the CSR Basic Policy.

Since fiscal 2006, we set the “CSR Month,” in which we hold CSR-related activities intensively and carry out awareness-raising programs targeting our employees and other people. The topic selected in fiscal 2012 was “Opportunities to deepen the awareness of CSR activities.”

Main Events◆ Issuing CSR Report 2012 and disclosing it on the

corporate website◆ Disseminating the TOPCON WAY （distributing printed

editions to employees of TOPCON headquarters as well as domestic and overseas group companies）

◆ Providing a CSR and environment education program◆ Carrying out the “Month for Reading the CSR Report

from cover to cover”◆ Traffic safety awareness-raising programs◆ AED training

◆ “Philanthropy with unnecessary books”After collecting from our employees such books that are already unnecessary for themselves at home, we donated them to a nonprofit or-ganization, called SHAPLANEER, which is working in Asia. We achieved the goal of 1,000 books （5,127 yen）.

◆ Contribution to Itabashi Fireworks FestivalAs part of regional contribu-tion activities, we made special contribution to the “Itabashi Fireworks Fest ival” held by Itabashi Ward, which had the 80th anniversary last year, just like the TOPCON Group. The ward reserved for us 240 sheets for watching fireworks and we gave them to our employees, selected by public lot, who wanted to join the festival.

● HUMAN RIGHTSPrinciple 1 Businesses should support and respect the protection of interna-

tionally proclaimed human rights; andPrinciple 2 make sure that they are not complicit in human rights abuses.

● LABOURPrinciple 3 Businesses should uphold the freedom of association and the

effective recognition 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; andPrinciple 6 the elimination of discrimination in respect of employment and

occupation.

● ENVIRONMENTPrinciple 7 Businesses are asked to support a precautionary approach to

environmental challenges;Principle 8 undertake initiatives to promote greater environmental respon-

sibility; andPrinciple 9 encourage the development and diffusion

of environmentally friendly technologies.

● ANTI-CORRUPTIONPrinciple 10 Businesses should work against corrup-

tion in all its forms, including extortion and bribery.

Most of the environmental impact of the TOPCON Group, which owns processing plants in Japan and China and assembly plants in the US, comes from CO2 emissions through the use of electricity and fossil fuel, and wastes produced in manufacturing processes.The group also uses a lot of organic solvent for cleaning

Disclose the balance between energy and materials caused by our corporate activities.（TOPCON Headquarter only）

in manufacturing and assembly processes, as a practice characteristic of optical equipment manufacturers. Here we report the environmental impact resulting from the business activities of the entire TOPCON Group’s busi-ness activities, including sales companies with relatively low contribution to the environmental impact.

EUU.S.AASIADomestic group companiesTOPCON HQ

2011 194 161 38 174

（1,000ℓ）0.0 100.0 200.0 300.0 400.0 500.0 600.0

2012

TOTAL 60740

164 133 49 100TOTAL 481 35

（FY）

EUU.S.AASIADomestic group companiesTOPCON HQ

2011

（1,000kwh）0.0 10,000 20,000 30,000 40,000

2012TOTAL 30,2918,504 11,272 7,143

2,448 924

TOTAL 33,3929,374 10,746 9,807

2,470 995

（FY）

OthersAcid/AlkalineOrganic solvents1-BPIPA

2011

（ton）0.0 20.0 40.0 60.0 80.0 100.0

2012 25.6 11.9 29.61.8 3.1TOTAL 72.0

46.8 13.6 39.71.9 2.6TOTAL 104.6

（FY）

EUU.S.AASIADomestic group companiesTOPCON HQ

（FY）

（t-CO2）0.0 5,000 10,000 15,000 20,000

2012TOTAL 15,6493,373 4,412 5,768

2011TOTAL 18,1553,748 4,285 7,907

1,526 689

1,523 573

EUU.S.AASIADomestic group companiesTOPCON HQ

2011

0 500250 1,000750 1,250

2012 419 461 228TOTAL 1,220 84 28

371 372 152TOTAL 1,021 87 39

（ton）

（FY）

▶Fossil fuel consumption（crud 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

the 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 19 and, if necessary, request the com-pany concerned to implement improvement.

※ 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

The Ten Principles

INPUT OUTPUTTOPCON Business Activities

Manufacturing

Research,development and designing

Greenhouse gasCO2 （t-CO2） 3,373

Air contaminantsNOx （kg） 71

Water contaminantsDrainage volum （m3） 18,554BOD （kg） 2,616SS （kg） 1,983

Chemical substancesAmount （kg） 5,000

WasteAmount （tons） 419

Materials＊1

Iron （kg） 0Copper （kg） 3Aluminum （kg） 93

EnergiesElectric （1,000kWh） 8,504Gas （1,000m3） 57Petroleum （kℓ） 39

Water resourcePotable water （m3） 22,843Industrial wate （m3） 9,666

Chemical substances＊2

Amount of use （kg） 6,409

http://www.unglobalcompact.org/index.html （UN Global Compact）

UNGC-related activities

Events on the CSR Month

TOPCON GROUP Environmental Vision 2020

1 Preventing global warmingThe TOPCON Group, which regards global warm-

ing as the most important environmental issue, aims to reduce the amount of CO2 emitted by all of its Japa-nese 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 accordingly.

2 Contribution by ProductsWe will promote efforts to reduce energy consumption and to conserve resourc-

es to reduce the environmental impact through the product lifecycle much more.We will work with our customers to offer products, technologies, 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 effectively the waste material produced from our corporate activities, including devel-opment, production and sales.

Environmental Impact of the TOPCON GROUP （FY2012）

Environmental Impact Caused by TOPCON HQ （FY2012）

Procurement

CSR Activity Report

17 TOPCON Group Corporate Social Responsibility Report 2013

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.

18TOPCON Group Corporate Social Responsibility Report 2013

We introduce some of our regional contribution activities in TOPCON Group.

Group member in United StatesTopcon Positioning Systems, Inc.

Ongoing support to Open ArmsTPS continues to support Open Arms Shelter, a pri-vately operated temporary residence for children who have been removed from their homes due to abusive parents or guardians.The TPS marketing communications staff has also cre-ated presentations and a brochure for Open Arms Shelter to use in their efforts to obtain grants and private donations. TPS is an annual sponsor of a fund-raising event to help retire the construction debt of the shelter’s recent expansion.

Run for JapanOn March 10, 2013 the two-year anniversary of the To-hoku earthquake and tsunami disaster, TPS supported the Run for Japan, an event to raise funds for Japan disaster through walking or running in the San Francisco Bay Area. TPS donated to the event as both sponsor and partici-pant. This event sends equipment and supplies to benefit children and schools in disaster areas through the Minis-try of Education, Culture, Sports, Science and Technology in Japan.

Group member in United StatesTopcon Medical Systems Inc.

Thanksgiving Food DriveIn November 2012, TMS held its 6th Annual Food

Drive. Employees donated non-per-ishable food items which were sup-plied to the Center f o r F o o d A c t i o n and the Emmanuel Cancer Foundation.

Group member in ChinaTopcon Optical （Dongguan）Technology Ltd.

Support to the Poverty Areas and the Persons with Disabilities FundTOPCON OPTICAL

（D O N G G U A N） T E C H N O L O G Y LTD. donated RMB 5 0 , 0 0 0 t o t h e poverty areas and RMB95,737 to the persons with dis-abilities fund.

Group member in SingaporeTopcon Singapore Medical Pte. Ltd.

Support to the Charitable EventTOPCON SINGAPORE MEDICAL PTE. LTD. donated SGD 5,000 to WORLD WITHOUT EYE DISEASES OR BLINDNESS which supports patients with eye disorder.

Group member in ThailandTopcon Instruments （Thailand） Co., Ltd.

Lecture at Thai Optometric AssociationTOPCON INSTRUMENTS （THAILAND） CO., LTD. gave lectures to students who study optometry at Thai Optometric Association. The students could deepen their knowledge and gaining real experience which would benefit them for their future career.

In the TOPCON Group, five companies （four Japanese and one Chinese） whose manufacturing processes have a larger environmental impact than that of other group companies and who have acquired ISO 14001 certifica-tion are screened each year by the certification authority.

In addition to the above fact-finding survey, environmental audits are conducted to improve the group companies’ environment conservation activities. Conventionally, we first conducted document-based audits （audits of environ-mental management and compliance） and then on-site auditing at each company. With improved environmental

In the TOPCON Group, mainly manufacturing companies and some other companies with a large number of employees have undergone fact-find-ing survey for the environmental impact since 2007. We make it a rule to offer guidance to any company which the survey found has a problem （for example, if it has shown a sudden increase in environmental impact）.For the results of the survey, see the “TOPCON Group Environmental Im-pact Report” on page 18.

In the screening carried out in fiscal 2012, no companies received a category A （major） non-compliance and all companies retained their certification. Companies that have received a category B （minor） non-compliance are implementing appropriate improvements.

awareness of each company, we changed the method of audit, and now, we perform only document-based audits for the time being, under the authorization of depart-ments responsible for control.In fiscal 2012, seven group companies underwent the sur-vey and revealed no problems regarding the level of control.

ISO 14001 Audit

Environmental Auditing of Group Members

Fact-Finding Survey

Questionnaire （Japanese） Questionnaire

（English）

Approval Date

Certification organization Latest audit date Type of audit Category “A”

（major）Category “B”（minor）

Opportunity for improvement

TOPCON Headquarters TOPCON TECHNOHOUSE 1997. 9.29 JACO 2012/ 8/ 6～ 8 Renewal 0 0 6

TOPCON YAMAGATA 2000. 3.20 TUV 2012/ 8/ 1～ 2 Examination of certification organization change 0 2 0

Topcon Optical（Dongguan）Technology Ltd.（China） 2001. 5.17 SGS 2011/ 5/ 8～10 Renewal 0 0 0

OPTONEXUS HQ OPTONEXUS Takine Plant 2001.12.21 JQA 2012/11/14～16 Surveillance 0 0 3

※ TOPCON TECHNOHOUSE and OPTONEXUS （Takine plant） have expanded the scope of their certification.

TOPCON OPTICAL （DONGGUAN） TECHNOLOGY LTD. in China works on continuous energy saving to reduce en-vironmental impact. They cut electric power consumption by approximately 325 mWh per year by replacing low efficient air conditioners with energy saving ones and replacing low efficient compressor. As the results of taking part in such kind activities, they were awarded by Chinese authority and

Topcon Europe B.V. （“TE”）, a group member in Netherland is in the process of gradually replacing the light armatures. Since TE started this project, about 25% of the armatures have been replaced. TE also installed motion detectors in spaces like the garage and ar-chive in order to save energy.

were given the certificates of com-mendation and the honorable title.

Energy-Saving Activity in ChinaGlobal

Awareness on Energy

Participants

Food Drive

Letter of appreciation

State of lecture

Efforts for Reducing the Environmental Impact

CSR Activity Report

19 TOPCON Group Corporate Social Responsibility Report 2013

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.

20TOPCON Group Corporate Social Responsibility Report 2013

In Response to the Third-Party Opinion

Support Activities to Local Education and Academic FacilitiesWe accepted students of junior high and high schools making workplace and internship studies as part of regional education support and academic assistance.

In addition, we offered voluntary lectures and dona-tions to universities and various academic conferences.

Other Local Contribution ActivitiesTo respond to the request from community associa-tions, we offered our premises for temporary uses for collecting “resource” garbage and allowing the break for festivals.

Supporting the Reconstruction of the Areas Affected by the Great East Japan EarthquakeOnce every month, w e o f f e r “r e c o n -struction-supporting menus” at the caf-eteria for the pur-pose of supporting the areas affected by the earthquake. Part of their sales will be donated for reconstruction ac-tivities through the Japan Red Cross.

Japan

Accepting students of local junior high and high schools and junior colleges making workplace studies

for collecting “resource” garbage

for allowing the break for festivals

Offering factory tours for public organizations, private businesses and schools

Accepting students of nursing

departments of universities for

practical training

TOPCON, TOPCON YAMAGATA, OPTONEXUS, SOKKIA TOPCON, TOPCON SERVICE

In 2011, the European Commission launched its new Communication on CSR for the period 2011-2014 and re-defined CSR as “the responsibility of enterprises for their impacts on society.” In the same year, Professor Michael E. Porter at Harvard University proposed the concept of Creating Shared Value （CSV）. Some consider CSV as an expansion of CSR, but I think that CSR as defined by the European Commission and CSV are complementary to each other and the CSR report needs to report both of those aspects.The TOPCON Group’s previous CSR reports contained descriptions regarding “the responsibility of enterprises for their impacts on society” based on the ten GC prin-ciples and the TOPCON WAY. They, however, failed to clearly identify requirements from the viewpoint of CSV. In the current report, the Special Feature introduces six examples of CSV-related activities for the first time to meet the expectations of readers.While it includes many examples, possibly because a bal-ance among companies is considered, I think that focus-ing on a fewer cases and drilling down into details would be more appealing.Taking “precision agriculture” as an example, its social value is immeasurable as we are now faced with food shortage problems due to rapid population growth, global warming and insufficient workforce and it will also serve as a driver for improving corporate values, so that it would require more detailed description in addition to the URL of the use case.The CSR activities and reports need to be gradually im-proved in response to changes in the society. The 2013 edition shows several such changes, not only those relat-ed to CSV. For CSR activities, it shows that PDCA cycles have started to function in an appropriate manner.Self-assessment （check） was started in the 2011 edition. This time TOPCON achieved goals for all items by identi-fying problems related to the failed items and carrying out appropriate action to achieve goals. I hope that TOPCON will further improve the level of CSR by reviewing Key Per-formance Indicators （KPI） for each item and setting quan-titative goals if possible.

For CSR reports, I have been impressed by the disclosure of total and overtime working hours, backgrounds for maintaining and strengthening export control systems, and description about human rights. In particular, for hu-man rights, global enterprises are required to actively address the issues with the global trend of respecting human rights in response to the publication of ISO26000 and the adoption of “Guiding Principles on Business and Human Rights” by United Nations.The current report only contains extraction from the code of conduct but I hope that the next edition will contain the description of due diligence processes regarding hu-man rights.In the exchange of opinions with the persons in charge of the CSR report, they reported that the number of ac-cesses to the website is increasing and that accesses to the English site are more than those to the Japanese site and increasing at a higher rate. Those results have not surprised me because of highly global natures of such elements as product characteristics, sales by region, and employee distribution. The Message from Top Manage-ment also refers to commitment to becoming a globally excellent company in a true sense.Taking all of the above into consideration, it will be a great challenge for TOPCON to achieve the disclosure of corporate information suitable for a truly global company.Regarding corporate reports, the International Integrated Reporting Council （IIRC） states that the required informa-tion will be more extensive than that provided by the current corporate report model and they have been pre-paring a framework for integrated reports. At the end of 2013, they will publish “International Integrated Reporting Framework version 1.0.” Many global enterprises have already started to make preparations for complying with that framework.In addition to the CSR report, the TOPCON Group also is-sues annual reports including ESG＊ information. I expect that TOPCON will create a road map for corporate infor-mation disclosure for the next three to five years （including the amount and quality of information, disclosure media and systems） and implement the road map steadily.

Tamio Yamaguchi,RepresentativeSpecified non-profit organizationJunkan Workers Club

The CSV cycles enable the TOPCON Group to further evolve and expand as each member company grows in cooperation with local communities and makes efforts to solve social problems. Through those cycles, we will continue to fulfill our responsibilities for the society, environment and future generations.In activities to be carried out this year, we will endeavor

to further improve the level of our CSR activities by recognizing our mission and roles as a global enterprise regarding the international trend of respecting human rights.

TOPCON CSR CommitteeChairman Hiroyuki Nakamura

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 lo-cal citizens, businesses, and public administrations.

URL : http://www.nord-ise.com/junkan/

＊ ： An acronym of Environment, Social and Governance

21 TOPCON Group Corporate Social Responsibility Report 2013 22TOPCON Group Corporate Social Responsibility Report 2013

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. Third-Party Opinion