Respect for Human Rights

System Linking Company's Growth with Individual Growth

To bring out the motivation and creativity of our employees, KOKUYO is making efforts to change goal setting and evaluation systems and methods in the Personnel System.

Creating an Environment that Facilitates the Growth of Each Employee

The KOKUYO Group is promoting the development of mechanisms and environments where capable and enthusiastic employees can play an active role in the workplace, and where they are appreciated for their performance

regardless of nationality, race, gender, age, religion or academic background.

In addition to these measures, we are undertaking operation model reforms as part of our medium-term management plan, "Self-reform focusing on value creation -Value Transformation 2018," which was started in October 2015. These reforms focus on realizing customer-orientated value creation with the goal of eliciting changes in the relationship between people and the company, as well as encouraging the motivation and bringing out the creativity of our employees.

[Three approaches that will bring about changes in the relationship between people and the company]

(1) Changes to the goal setting system

(2) Changes to the evaluation system

(3) Clearer reflection of evaluation in employee treatment

In support of this medium-term management plan, we are working to build a goal-setting system in whichthat enables each employee canto better understand the purpose of making effortgoal that they are working toward.

In the previous commitment-style communication, in which supervisors unilaterally communicated goals, these goals tended to be unmovable, leaving employees unable to fully understand them. Under the new system, we are switching to consensus-style communication, where supervisors and subordinates repeatedly discuss why this high priority theme should be addressed and what goal they want to set for themselves.

Managers and members of top management also hold workshops related to goal setting to share information such as "what has just been achieved" and "what was able to be reformed," in order to gain a better understanding of the issues related to setting goals for the next term. We will continue promoting efforts to more fully establish this new goal-setting system.

For the evaluation system, we switched from relative evaluation to absolute evaluation, which gives a clearer view of how evaluation is reflected in compensation. This switch now allows each employee to define the specific results to be achieved when setting goals, i.e., what has to be accomplished by when and to what degree. Then, evaluation and compensation are determined based on how fully the employee has achieved the set goals.