Basic Policy

Panasonic proactively carries out activities as a corporate citizen in dialogue with the rest of society with the aim of creating a society that is healthy and fulfilling.
In entering or leaving a market, Panasonic works to contribute positively to local communities through dialogue with local governments and residents and evaluating its impact on the environment and other areas, while also minimizing any possible negative impacts.

Panasonic Code of Conduct (Excerpts)

The Panasonic Code of Conduct stipulates our policy on corporate citizenship activities and engagements with local communities.

Chapter 2: Implementing the Code in Business Operations; II-6. Corporate Citizenship Activities

(1) Corporate Citizenship Activities

Recognizing that our Company is a member of society, in order to create a better society we will carry out corporate citizenship activities, such as coexistence with the environment, personal development and education, art and cultural promotion, social welfare, and support for and partnerships with non-profit organizations and non-governmental organizations. Through these activities we aim to help create a healthier, more prosperous society.

(2) Coexistence with Local Communities

Recognizing that our Company is a member of the local community, we will endeavor to work and prosper in tandem with the local community.
We will actively cooperate with the local community and participate in its activities. In particular, we will carry out corporate citizenship activities benefiting the community to promote such areas as art, culture and sports, as well as the environment. Also, we will work to meet the needs of the local community by making company facilities available and holding events open to the public when possible.
When a large-scale disaster such as a natural calamity takes place, we will cooperate with the parties concerned and swiftly take necessary supportive action.

(3) Donations, Sponsorships and Support for Public Service Organizations

To help alleviate social problems and contribute to society, the Company will make appropriate donations and sponsor activities. The Company will also provide support for public service organizations, including the foundations and funds that it has established.

Management System of Corporate Citizenship Activities

Our mission is to contribute to the advancement of world culture by working to improve life in society through our manufacturing and sales activities.
In 1929, Panasonic's founder Konosuke Matsushita established the Basic Management Objective that comprehensively presents Panasonic's business objectives and reason for existing, creating a management philosophy to serve as a foundation for all of the Company's business activities.
This is still the basis for our approach to everything we do at Panasonic even today.

One of the core tenets of this Basic Management Objective concerns satisfying customers the world over through our business activities as industrialists. Another is to undertake activities as a corporate citizen meant to position us as a company that contributes to the creation of a healthy and fulfilling society.

When it comes to corporate citizenship activities, Panasonic is engaged in a variety of activities in regions around the globe, each tailored to the circumstances in that area based on the Global Policy outlined below. The Company defines key performance indicators (KPIs) for major activities and uses these to evaluate results and make improvements. Through CSR & Corporate Citizenship News, the relevant directors and executives—from the Panasonic president on down—share information concerning Panasonic activities in regions around the world with those in charge of those activities in the various locales. In addition, Panasonic conducts global annual surveys of its corporate citizenship activities and publicly releases the findings on its Sustainability site.

Japanese and Overseas Regional Headquarters (Six Regions) [Promotion of Regional Activities] (Appliances, Eco Solutions, Connected Solutions, Automotive & Industrial Systems) > Ascertaining Conditions (Global Annual Survey) > CSR & Citizenship Department (Responsible for Corporate Citizenship Activities) [Promotion of Corporate Citizenship Activities] [Measure Results; Improvement] [Setting of Global Policy] > Information Sharing (CSR & Corporate Citizenship News), Public Release (Sustainability Site) > Stakeholders

Setting Policies

Every three years, Panasonic drafts a mid-term plan and also establishes policies and areas of focus for its corporate citizenship activities. Panasonic determines its areas of focus by comprehensively taking into account company business policies, conditions in society, societal demands, expert opinions, and other considerations.
So far, Panasonic has implemented the following initiatives in formulating its mid-term plan (fiscal 2017 to 2019) beginning with fiscal 2017.

1. Trend analysis of other companies

Panasonic analyzes trends and directions concerning corporate citizenship activities through discussions with CSR divisions at other companies that are considered CSR leaders.

2. Bringing together expert opinions

Panasonic invites outside experts for hearings on trends in global social issues. The Company has set the policies in its mid-term plan based on the Sustainable Development Goals (SDGs) of the "Transforming our world: the 2030 Agenda for Sustainable Development," a product of the United Nations Sustainable Development Summit held at the United Nations headquarters in New York in September 2015.

The Sustainable Development Goals (SDGs)

Goal 1

End poverty in all its forms everywhere

Goal 2

End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Goal 3

Ensure healthy lives and promote well-being for all at all ages

Goal 4

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Goal 5

Achieve gender equality and empower all women and girls

Goal 6

Ensure availability and sustainable management of water and sanitation for all

Goal 7

Ensure access to affordable, reliable, sustainable and modern energy for all

Goal 8

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Goal 9

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Goal 10

Reduce inequality within and among countries

Goal 11

Make cities and human settlements inclusive, safe, resilient and sustainable

Goal 12

Ensure sustainable consumption and production patterns

Goal 13

Take urgent action to combat climate change and its impacts

Goal 14

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Goal 15

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Goal 16

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Goal 17

Strengthen the means of implementation and revitalize the global partnership for sustainable development

3. Materiality assessments

Panasonic compares its business with challenges in society, classifying those challenges into ones with solutions to which its main line of business might make contributions, and ones that should be addressed through social contribution activities. Panasonic then extracts from each of those issues critical themes for its corporate citizenship activities with consideration to the strength of the expectations placed on it by various stakeholders.

Policy of Corporate Citizenship Activities

Panasonic aims to contribute to the resolution of societal problems, the creation of a better life and happiness around the world, and the development of society through both its business activities and its corporate citizenship activities, all under the banner of the brand slogan "A Better Life, A Better World."

Of all the issues in the world today, the growing poverty faced by people around the globe, whether in developed countries or developing and emerging countries, is particularly serious. The Sustainable Development Goals were created by the United Nations in 2015 as a plan of action for humanity, the earth, and prosperity. Of the 17 goals and 169 targets included in those goals, the one at the very top of the list is ending poverty.

Konosuke Matsushita, the founder of Panasonic, understood poverty as an evil, and considered the purpose of business was to bring an end to it. While standards of living have improved for many, and some poverty has been eliminated, there are many nations and regions that have been left out of this wealth, and the gaps in the standards even among so-called developed nations have become wider.

In light of this situation, Panasonic wants to contribute to resolving these social issues and building a sustainable global society through corporate citizenship activities such as those involving human resources development, opportunity provision, and mutual understanding. The Company's hope is to do so in cooperation with all of its stakeholders, while putting its products and technologies, as well as its knowledge and resources cultivated through manufacturing, to good use.

Realizing A Better Life, A Better World (Developing Countries:Corporate Citizenship Activities) (Emerging Countries:Ending Poverty) (Developed Countries:Business Activities)

Responsible Executive and Framework of Corporate Citizenship Activities

The executive officer in charge is Excutive Officer (as of August 2017) Satoshi Takeyasu.
The department with primary responsibility over such activities is the CSR & Citizenship Department of the Groupwide Brand Communications Division. In addition, the six regional headquarters (North America; Latin America; Europe & CIS; South East Asia and Pacific; India, South Asia, Middle East and Africa; China & Northeast Asia) and the four Panasonic Companies (Appliances, Eco Solutions, AVC Networks, and Automotive & Industrial Systems) have established social contribution managers who engage in activities that are based on Panasonic's global policies but are tailored to local conditions.

Employee Participation and Systems that Support It

Instilling mindfulness in employees concerning their roles as corporate citizens, as well as their participation as such, is critical in promoting Panasonic's corporate citizenship activities. This section will cover the details of those activities as well as personnel systems that encourage participation.

Employee Participation-Based Voluntary Activities

Panasonic Innovation Volunteer Team (PIVoT)

The Panasonic Innovation Volunteer Team (PIVoT) uses the skills that Panasonic employees have gained in their day-to-day work to engage in volunteer activities with NGOs active in emerging nations, with the aim of resolving the problems that those organizations face. Panasonic uses PIVoT activities both to contribute to societies in various regions and to engage in a deeper study of the lives and mores in those communities, of various social issues, and of sustainable lifestyles. What is learned is used in creating new business (products, business models, etc.).

Panasonic Innovation Workshop

The Panasonic Innovation Workshop is a voluntary participation-based workshop that studies issues emerging and developing countries face and proposes plans of resolution based on local perspectives.
Mixed teams composed of members from different business divisions make these proposals. Through group work, the teams offer suggestions for practical approaches that make use of Panasonic resources (technology, networks, etc.) to improve living conditions in an area. New products that address societal issues in emerging and developing countries have been born of these workshops.

Providing a Donation Mechanism that Uses Employee Benefit Points

For Panasonic's 100 Thousand Solar Lanterns Project, the company has created a mechanism by which employees can donate toward the project a portion of the points granted them for employee welfare services, in order to provide opportunities for Panasonic employees to participate personally in these activities.

Visiting Lectures at Schools

As part of its activities to support human resources development, Panasonic is providing visiting lectures at elementary schools and other educational facilities. Company employees visit schools and use the knowledge and experience that they have gained from their everyday work to give lectures.

Environmental education in China

Panasonic NPO Support Pro Bono Program

Panasonic has been running a social contribution program since April 2011 in which company employees use the skills and experiences that they have gained through their jobs to support NPOs—the Panasonic NPO Support Pro Bono Program. The participating company employees have been providing NPOs with support, including by formulating mid-term plans, drafting marketing materials, and rebuilding websites.

Human Resources System for Supporting the Promotion of Employee Participation

Volunteering Vacation System

Each Panasonic employee receives five days of Volunteering Vacation time every year. When taking vacation time for the purpose of volunteering, the company takes special notice and allows employees to take consecutive days off.

Volunteering Sabbatical Leave System

This is a system for sabbaticals whose goal is participation in volunteering activities.
Activities covered by this system include volunteering led by the national government, local public bodies, and other public institutions, as well as those volunteer activities led or recommended by the company or the labor union and approved by the company. (However, political or religious activities are not allowed.)

Japan Overseas Cooperation Volunteers Leave of Absence System

This system offers leaves of absence for young employees to participate in the Japan Overseas Cooperation Volunteers program run by the Japan International Cooperation Agency (JICA).

Challenge Vacations (Life Juncture Vacations)

The Challenge Vacation system is intended to promote self-growth and refreshed minds and bodies among company employees. To allow employees to engage in their work with a new passion, employees may take vacation time at important junctures during their careers at Panasonic.
Employees who have completed 10, 20, or 30 years of consecutive service at the company (except for executives and managers) may take 10 days of vacation time.
Employees also take advantage of these days as opportunities for volunteering.

Performance Evaluation of Corporate Citizenship Activities

Panasonic measures the effectiveness of its main activities in manners tailored to the particularities of each initiative.

1. Evaluations through follow-up surveys after program implementation

For activities aimed at enhancing the organizational infrastructure of NPOs / NGOs— the Panasonic NPO Support Fund—the company conducts a follow-up survey with the organization that received assistance one year after the assistance work was completed. Third parties conduct quantitative and qualitative evaluations of how effectively an organization’s infrastructure has been strengthened. In a 2016 survey, among the 11 groups that received assistance in 2014, 81.8% of groups responded that around 80%–120% of the target amount of the organizational management problems that they had faced at the time of applying for assistance had been resolved through the supportive work done by Panasonic. Furthermore, as for the improvement or higher outcomes / impacts for major work by the organization, 10 among 11 groups that had been subject to the initiative responded that improvements had been effected for at least one item. This demonstrates that the organizational infrastructure enhancement initiatives implemented through this assistance program are effective at improving outcomes or increasing the impacts of major work performed by the beneficiary groups.

* Japanese only

2. Trial implementation of SROI methods of program evaluation

A system of program evaluation that uses an SROI method was adopted on a trial basis for the 100 Thousand Solar Lanterns Project. Social Return on Investment (SROI) is a method for evaluating the size of the societal impact of a given program from the standpoint of ROI, expressed in terms of the amount of social value (outcomes) created in relation to the expenses of the program or activity (input). If the SROI is above 1, then the project can be judged to have had investment value (the social value of the program exceeds the expenditure).
By applying this method of evaluation to a sample of 672 lanterns donated to an organization in Cambodia in 2013 and 2014 as part of the 100 Thousand Solar Lanterns Project, the evaluation made in fiscal 2016 for three years was 1.5, indicating that the outcomes generated exceeded the investment cost. In fiscal 2017, we made another evaluation to a sample of 624 units donated in 2014 to an organization in Myanmar, and the SROI was calculated as 2.4 in the highest case. The above two evaluations were made by an NPO specializing in SROI.

Cost and Effect of Corporate Citizenship Activities

To understand its activities at the global level, Panasonic conducts surveys of the conditions concerning its corporate citizenship activities throughout the entire group.

Spending on Corporate Citizenship Activities by Region in FY2017
Spending on Corporate Citizenship Activities by Region in FY2017 (Million Yen) Japan:1,931, Japan (Overseas-related):462, North America:80, Southeast Asia & Oceania:124, Latin America:88, China and Northeast Asia:338, Europe:21, India, South Asia, Middle East and Africa:30 (Total Expenditure:3,074 million yen)
Spending on Corporate Citizenship Activities by Area of Activity in FY2017
Spending on Corporate Citizenship Activities by Area of Activity in FY2017 Human Resorces Development:33% (Education, Academic Activities), Environment:5%, International Exchanges:5%, Community:33%, NPO Support:2%, Sports:2%, Disaster Relief:1%, Arts & Culture:13%, Other, Publicity:4%, Operating Costs:10% (Total Expenditure:3,074 million yen)

Donations

Types of Donations

(Million yen)

Type of Donation and Amount

Percentage of Total Costs

Charitable Donations 590

19%

Community Investments 2,356

77%

Commercial Initiatives 128

4%

Total 3,074

100%

Methods of Donation

(Million yen)

Method of Contribution

Amount

Cash contributions

418

Time: employees volunteering during paid working hours

32

In-kind giving: product or service donations, projects / partnerships, or similar

2,316

Management overhead

308

Total

3,074