CSR Repo 2015Rt

CSR Report 2015

Corporate Social Responsibility Report

OKI Group's CSR

OKI Group's CSR

The OKI Group?s initiatives of corporate social responsibility (CSR) focus on contributing to the improvement of the quality of life for people around the world through sound corporate activities based on our corporate philosophy.

Corporate Philosophy

The people of OKI, true to the company's "enterprising spirit," are committed to creating superior network solutions and providing excellent information and communications services globally to meet the diversified needs of communities worldwide in the information age.

OKI Group Charter of Corporate Conduct

For the betterment of corporate value, the OKI Group (Oki Electric Industry Co., Ltd. and members of its group of companies) seeks to provide satisfaction to its customers at all times and to become a trusted partner for our stakeholders, including shareholders and investors, employees, customers and suppliers, and the local societies of the areas in which it operates. In addition to complying with all related laws and regulations, the OKI Group will implement sound corporate activities consistent with social norms, and contribute to the improvement of the quality of life for people around the world.

Customer Satisfaction

The OKI Group is dedicated to developing and providing products and services that ensure continued customer satisfaction, in full consideration of safety and ease of use.

Fair Corporate Activities

The OKI Group conducts appropriate transactions and works to ensure fair, transparent, and free competition.

Good Communication

The OKI Group engages with society through a variety of interactions, and discloses company information in manners that are appropriate and fair.

Intellectual Property and Information Management

The OKI Group recognizes the importance of intellectual property, and properly manages and protects company and customer information, including personal information.

Respect for Human Rights

The OKI Group respects the human rights of all persons involved in its corporate activities and eliminates illicit discrimination of any kind. It does not allow child labor nor forced labor.

A Better Working Environment

The OKI Group ensures and maintains a safe and comfortable working environment for all employees.

Respect for Employees

Respecting the individuality of each employee, the OKI Group creates a corporate culture in which its personnel are encouraged to engage in challenges facing the group with courage and determination.

Environmental Conservation

In order to realize and pass on a better global environment, the OKI Group promotes environmental management and makes efforts to conserve the environment through its products and its business activities.

Social Contribution

As a good corporate citizen, the OKI Group implements social contribution activities dedicated to the betterment of society.

Regional Awareness

The OKI Group endeavors to build a positive relationship and grow together with local societies, respecting the cultures and customs of the countries and regions in which it operates.

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OKI Group CSR Report 2015

OKI Group's CSR

The OKI Group, as described in its corporate philosophy, aims at contributing to improve the quality of life for people around the world through its core business, namely the manufacturing and distribution of products and services that can serve the development of the information age. Our commitment to the pursuit and fulfillment of this idea underlies the group's corporate social responsibility (CSR) initiatives.

Based on this understanding, in order to cohesively promote our CSR initiatives, we enacted the OKI Group Charter of Corporate Conduct, as a statement of values to be shared by all OKI Group companies. We also established "OKI Group Code of Conduct", which is to be conformed to by all executives and employees of the group. We have adopted the charter and code across the entire group, and are working to thoroughly implement them through various means such as training programs.

We will continue to consider social responsibilities from all the relevant angles ? namely, from the aspect of the United Nations Global Compact and the international standard ISO26000 regarding social responsibility along with the aspect that comes in the shape of expectations received from stakeholders, in order for us as the OKI Group to further boost the contribution to our regular business while simultaneously reconfirming the social responsibilities we should fulfill.

Foundation of CSR at the OKI Group

Corporate Philosophy

Statement of values OKI Group companies need to share

OKI Group Charter of Corporate Conduct

CSR Initiatives by the OKI Group

Contributing to the Improvement of the Quality of Life for People around the World

Shareholders/Investors Customers Business Partners

Local Communities

Global Environment

Governments

NPO/NGO

Corporate Activities

Creation of Economic Value

Corporate Governance

Customer Satisfaction Fair Corporate Activities Good Communication IntellectualProperty and Information Management Respect for HumanRights

A Better Working Environment Respect for Employees

Environmental Conservation Social Contribution Regional Awareness

Code of conduct to be conformed to by all OKI executive officers and employees

OKI Group Code of Conduct

The OKI Group's Activities

Stakeholders

Compliance

Employees

Social Responsibilities in Business

Participation in the United Nations Global Compact

In May 2010, OKI signed the United Nations Global Compact to declare its support for the Compact. It also became a member of the Global Compact Network Japan, which is a local network in Japan. The OKI Group supports the ten principles of the United Nations Global Compact in the area of human rights, labor, environment and anti-corruption, and engages in activities for helping create sustainable societies.

The Ten Principles of the UN Global Compact

Human Rights

Principle 1:Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2:make sure that they are not complicit in human rights abuses.

Labor

Principle 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 labor; Principle 5:the effective abolition of child labor; and Principle 6:the elimination of discrimination in respect of employment

and occupation.

Environment

Principle 7:Businesses should support a precautionary approach to environmental challenges;

Principle 8:undertake initiatives to promote greater environmental responsibility; and

Principle 9:encourage the development and diffusion of environmentally conscious technologies.

AntiCorruption

Principle 10:B usinesses should work against corruption in all its forms, including extortion and bribery.

OKI Group CSR Report 2015

3

A Message from the President

A Message from the President

We keep people's trust through our unlimited drive based on an "enterprising spirit" and sincere business activities.

President Oki Electric Industry Co., Ltd.

We execute our responsibilities toward societies based on our corporate philosophy.

OKI has taken on the baton from its predecessor, Meikosha, founded in 1881 as the first communication device manufacturer in Japan and the company that worked to develop domestic production of the newly invented telephone. Our corporate philosophy, "The people of OKI, true to the company's `enterprising spirit,' are committed to creating superior network solutions and providing excellent information and communications services globally to meet the diversified needs of communities worldwide in the

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OKI Group CSR Report 2015

information age.," has inherited the strong determination it has held since its foundation to "create new businesses with new technologies" and "make the world more convenient," and has become the core of what the OKI Group considers "corporate social responsibility (CSR)."

We contribute to society through our products and services.

Based on this philosophy, the OKI Group's mission is to contribute to society through our products and services. The OKI Group has been undertaking a series of activities to correctly understand the social needs, establish

A Message from the President

technologies, achieve quality to satisfy our customers, and sustain the maintenance system as part of our sales and marketing, technology development, production, and maintenance. As a result, we in the OKI Group now play an important role in Japan for supplying and maintaining various systems including systems for financial institutions, telecommunication infrastructures for telecom carriers, and various public systems such as transportation and disaster prevention in Japan, while our ATMs and printers are widely used overseas.

In order to continue to live up to the expectations of customers as well as of societies, our Mid-term Business Plan 2016, to be concluded at the end of FY2016, states the management policy of "Realize sustainable growth through continuous investment by securing stable profitability." At the same time, we also proposed our ideal image, namely to "become a high-value added creation group, contributing to the realization of safe and comfortable society." The OKI Group will accelerate activities toward growth with the following three pillars; "Expanding business in global markets," "Supporting customers' `asset-free' management," and "Realization of safe and comfortable society." Moreover, to give these activities substance, we will strive to boost our human resource measures by promoting diversity, starting with the employment and nurturing of global human resources and greater participation by women. Everyone of our group employees will put themselves in the shoes of stakeholders in order to think over approaches for providing a high-value added service while also putting into practice "Marketing and Innovation" as the hub activity. In this way, we will cut the right figure as a high value added creation group.

We promote responsible corporate management as a global corporation.

In order to advance responsible management, the OKI Group has enacted and thoroughly implemented the OKI Group Charter of Corporate Conduct, the statement of

values to be shared with all group companies, and the OKI Group Code of Conduct that should be conformed to by all executive officers and employees. The Group also joined the United Nations Global Compact in 2010, whose ten principles concerning human rights, labor, the environment and anti-corruption are used as the Group's references to further enhance activities. In the course of promoting our major pillar for the mid-term business plan, - namely, "Expanding business in global markets," we will ensure to recognize and assume our responsibility as a global company while enhancing the Group's governance, and work toward contributing to building sustainable societies.

We contribute to the realization of a better global environment, in accordance with the OKI Group Environmental Vision 2020.

From this perspective, we believe that proactive actions for reducing environmental load are some of the most important corporate activities of the OKI Group. Taking the global environmental issues into consideration, we have developed the OKI Group Environmental Vision 2020 for the purpose of contributing to the realization of a better global environment, in which the targets for 2020 are established in the following four areas; "Realization of low-carbon societies" "Prevention of pollution," "Resource circulation" and "Biodiversity conservation." To achieve these targets, we will enhance our efforts in business activities and products.

This CSR Report 2015 is intended to help all stakeholders better understand the OKI Group's initiatives. We sincerely hope that as many people as possible will read this report. Your honest opinions regarding our CSR initiatives would be greatly appreciated.

July, 2015

OKI Group CSR Report 2015

5

Company Profile / Editorial Policy

Company Profile

Profile

Corporate Name:

Oki Electric Industry Co., Ltd.

Founded in:

January 1881

Company Established:

November 1, 1949

Capital:

44 billion yen

Employees:

20,653 (Consolidated), 3,881 (Non-consolidated)

* As of March 31, 2015

Head Office:

1-7-12 Toranomon, Minato-ku,

Tokyo 105-8460, Japan

Tel: +81-3-3501-3111

Business Segments

Info-Telecom Systems

The OKI Group offers telecom systems, social infrastructure systems, mechatronics systems, and solutions & services, utilizing its core technologies of info-telecommunication and mechatronics, etc.

Printers

The OKI Group manufactures printers for business use utilizing its LED technology, and distributes them throughout the world.

EMS and Others

The OKI Group offers Electronics Manufacturing Services (EMS) and other services, based on its highly sophisticated design and production expertise developed within the group.

Net Sales

Billions of yen 600

423.5 400

455.8

483.1

540.2

205.1

226.0

238.8

258.3

200

0 2011

Consolidated

2012

2013

Non-consolidated

2014 (Fiscal year)

Employees

Number of employees 25,000

20,000 16,736

15,000

17,459

21,090

20,653

10,000

5,000

3,373

0 2011

Consolidated

3,678

3,788

2012

2013

Non-consolidated

3,881 2014

(Fiscal year)

Editorial Policy

The OKI Group "CSR Report" featuring our corporate social responsibility efforts and results is published in order to inform our stakeholders of the group's initiatives in an easy-to-understand way. Since the establishment of CSR Promotional Organization in fiscal 2005, OKI has worked continuously with a focus on the defined activity areas, assuming the OKI Group's social responsibilities that are deeply rooted in our Corporate Philosophy. The present report mainly describes the results of the activities in each of these areas for fiscal 2014. In the Special Features section, the two themes are featured as "Meeting Our CSR Commitments." In the articles, the important issues for us as we work toward achievement of the Mid-term Business Plan 2016 are placed on the horizontal axis, while the global initiatives and the stakeholders' voices received in various aspects of the corporate activities are placed on the vertical axis. Detailed information on each priority theme, such as that on specific policies and systems for it, are provided on our website. Also, regarding our environmental response, we issue an "OKI Group Environmental Report" containing detailed information on all sorts of data. Note also that the information on the website also includes a comparative table that shows the relationship between the OKI Group's CSR activities and the core themes of ISO26000.

Reference Guidelines

? Sustainability Reporting Guidelines Version 4.0 (GRI) ? Environmental Reporting Guidelines 2012 (Ministry of the Environment) ? UN Global Compact COP (Communication on Progress) Policy

Stakeholders' interests

[Information featured in this PDF version of the report] Greater

Meeting Our CSR Commitments

Corporate governance Priority themes (Achievements in fiscal 2014)

[Information provided on the website] Priority themes (Policies and systems and other related information) Significance to the OKI Group Greater

Stakeholders' interests

? Discussions related to GRI and ISO26000

? Initiatives in the industry such as EICC, GeSI and JEITA

? Opinions from stakeholders on last year's Social and Environmental Report

? Opinions from stakeholders collected through various surveys

of employees and others

Significance to the OKI Group

? Corporate Philosophy ? The OKI Group Charter of

Corporate Conduct, the OKI Group Code of Conduct ? Mid-term Business Plan 2016 ? The OKI Group Environmental Vision 2020 ? The OKI Group Environmental Policy ? The United Nations Global Compact ? Priority themes about CSR ? Risk management and other issues

GRI (Global Reporting Initiative): An international NGO that develops and disseminates globally applicable sustainability reporting guidelines

ISO26000 (International Organization for Standardization 26000): An international standard providing guidelines for social responsibility (published in November, 2010)

EICC (Electronic Industry Citizenship Coalition): An alliance of electronic manufacturers focusing on CSR that has enacted a code of conduct in the supply chain

GeSI (The Global e-Sustainability Initiative): A partnership of information and communications technology companies that collaborates with EICC about CSR management in the supply chain

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OKI Group CSR Report 2015

Net Sales by Business Segment in fiscal 2014/Consolidated

EMS 7.5

Printers 23.9

540.2

billion yen

Other 3.4

Info-telecom systems 65.2

Net Sales by Market in fiscal 2014/Consolidated

Latin America 6.4

Europe 10.5

China 13.1

540.2

billion yen

North America 4.1

Other 2.6

Japan 63.3

Scope Covered by This Report

Time Period

This report covers fiscal 2014 (the year from April 1, 2014 to March 31, 2015). However, the report also discusses some facts preceding this period, as well as policies and plans to be implemented in subsequent periods.

Organizations

The report covers the activities of Oki Electric Industry Co., Ltd. (OKI), and its consolidated subsidiaries. However, the environmental performance data covers OKI's 15 locations and 32 subsidiaries in Japan, and 46 overseas subsidiaries.

Corporate Names / Names of Organizations

Oki Electric Industry Co., Ltd. aims to be a globally known growth company. It is commonly called "OKI." In this report, Oki Electric Industry Co., Ltd. is referred to as "OKI," and its corporate group, including its subsidiaries and affiliates, as the "OKI Group." The names of the organizations referred to in this report, in principal, are those used as of April 2015.

Forecasts, Plans and Targets

In addition to factual information about the past and current activities of the OKI Group, this report also includes forecasts, plans and targets for the future. They reflect assumptions and judgments based on information available at the time of writing. Thus, readers are requested to understand that the future results of the company's activities could be different from what is described in this report.

Company Profile / Editorial Policy

CONTENTS

OKI Group's CSR

2

A Message from the President

4

Company Profile / Editorial Policy

6

CONTENTS

7

Special Feature: Meeting Our CSR Commitments

1. ICT to Realize a Safe and

Comfortable Society

8

2. Towards Achieving the OKI Group

Environmental Vision 2020

10

Promoting CSR at the OKI Group

11

Management

Corporate Governance

12

Risk Management/Compliance

13

Information Security

15

Together with the Stakeholders Improvement of Customer Satisfaction 16

Good Communications with

Shareholders and Investors

17

Respect for Employees

18

Social Contribution

19

Consideration for the Environment

20

For further information, please contact

CSR Division Oki Electric Industry Co., Ltd. e-mail: oki-csr@

OKI Group CSR Report 2015

7

Meeting Our CSR Commitments

Meeting Our CSR Commitments: Special Feature 1

Special Feature

ICT to Realize a Safe and

1

Comfortable Society

With the Mid-term Business Plan 2016, which ends in fiscal 2016, our management policy is to realize sustainable growth through continuous investment by securing stable profitability, as part of our effort to become a high-value added creation group, contributing to the realization of safe and comfortable society. Here, we would like to introduce the OKI Group approach from the view of Information Communication Technology (ICT) that contributes to the realization of a safe and comfortable society.

To achieve the sustainable growth incorporated in the management policy of the Mid-term Business Plan 2016, the defining point of us in the OKI Group is to launch from the core predominance we have cultivated up to now, so that we can maximize business opportunities by opening up new markets based on the shift in business environment. While expanding business and supporting asset-free management through maintenance, EMS and cloud services in global markets for mechatronics and printer businesses, we at OKI Group will make the realization of a safe and comfortable society, which is an integral part of the social infrastructure field for the next generation, a pillar for underpinning and achieving sustained growth.

Therefore, we will offer safer and more comfortable products and services to our domestic customers, starting with those in the financial, telecommunication and public sectors, as well as customers in global markets. In addition, we will roll out high added value products that make the most of the technical forte we have built up over the years, in order to further contribute to the realization of safe and comfortable society.

Market Changes as We Strive for Realization of a Safe and Comfortable Society

In the "Smart Japan ICT Strategy" announced by the Ministry of Internal Affairs and Communications (MIC) in May 2014, as part of the ICT growth strategy vision, ideas are put forward for the creation of new innovation by utilizing ICT to connect various commodities and services. This strategy also reveals ideas for priority projects in which ICT smart towns are developed to encourage local revitalization as well as solve social issues in areas like medical care, education, disaster prevention, transportation, female participation in society and aging infrastructures. Moreover, the strategy includes ideas for developing and maintaining an ICT environment for the Tokyo Olympics and Paralympics in 2020. In other words, this is the government's initiative for the realization of safe and comfortable society.

Thus, in acknowledging the arrival of the "Internet of Things" (IoT), where, in terms of technology, new value can be created by linking a diverse range of things to the internet to mutually spread information, the structuring of a Machine to Machine (M2M) environment that makes possible information exchange between "things" is already on the move to become part of tomorrow's world. In line with this, there also is an enormous amount of information collected and stored on clouds by a variety of sensors

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OKI Group CSR Report 2015

that is being analyzed and processed as big data, which, more and more, is being put to practical use in cyber-physical systems (CPS) to influence activities in the real world (physical) while its use via social systems such as smart grids and transport systems means that it is beginning to influence corporate and social activities.

OKI Group Approach

We are developing products and technology that make use of preeminence in areas such as sensing technology and short range wireless network technology as part of our effort for the realization of a safe and comfortable society.

Making Use of Sensing Technology We at OKI are striving to create ultra-sensitive human-detecting

sensor products that use radio waves to detect all sorts of motions from big ones like walking through to small ones like breathing. With such products, systems can be developed to provide detailed observation of the elderly and anyone else who needs caring for, as such products will enable real-time recognition of changes in physical condition and lifestyle rhythm of people, even if they are at rest in bed.

Highly sensitive human-detecting sensor

Body movement

Sensor

Active Resting

Empty

Sensor

Observation system

Active

Reacts to even breathing when a person is motionless

Home Care

Resting Empty Care facilities/retirement home

Example of how observation can be performed using ultra-sensitive human-detecting sensors

Again, making full use of video recognition technology, traffic flow analysis systems could be enhanced by street-mounted cameras supplying information on traffic volume and vehicle distinction, such as small and large classification. The expectation for such recognition technology is building as it is able to detect traffic jams, spilled cargo, vehicles driving up the wrong side of highways and accidents.

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