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A Message from the Management

Deepening CSR management toward making contributions to UN SDGs Achievement

Promoting CSR management

Hiroshi Nomura, Representative Director, President and CEOHiroshi Nomura
Representative Director,
President and CEO
Nomura

The definition of Sumitomo Dainippon Pharma's CSR-based management can be found in our Corporate Mission, which is "To broadly contribute to society through value creation based on innovative research and development activities for the betterment of healthcare and fuller lives of people worldwide." We not only promote our corporate governance system and thoroughly ensure compliance but also fulfill our social responsibility as a corporation through wide-ranging initiatives that include social contribution activities in and outside Japan, promotion of diversification, and active communication with diverse stakeholders.

To promote CSR management, we must foster a corporate culture that encourages a willingness to take on challenges so that individual employees will take the initiative in tackling reform and innovation. Since July 2011, we have focused efforts on the Declaration of Conduct, which serves as our basic stance in promoting corporate activities. Since April 2014, we have launched a corporate CSR blog to build our consciousness both periodically and continuously. Moreover, we have revised items of the Declaration of Conduct to reflect changes in economic and social conditions.

Toward the better realization of our CSR-based management, we position the establishment and implementation of a highly effective corporate governance system as the basis of our management, and have made endeavors to ensure the transparency and soundness of our management and reinforce internal control, such as the appointment of three Outside Directors and three Outside Audit & Supervisory Board Members. In October 2015, we formulated the Basic Policy on Corporate Governance and established a new Nomination and Compensation Committee to address the further strengthening of corporate governance. In April 2016, we established the Corporate Governance Department to effectively deploy that policy. In January 2017, we formulated the DSP Group Risk Management Policy in order to further coordinate our risk management system as a corporate group.

Contributing to a UN SDGs Achievement

From among the 17 Sustainable Development Goals (SDGs) announced by the United Nations in September 2015, we have placed a priority focus on "SDG 3: Good Health and Well-being," with contribution to "SDG 17: Partnerships for the Goals" also in mind. In order to help reach these goals, we are involved in diversified partnerships with universities, governments, and international organizations to engage in research and development of innovative new drugs and services and improvement of healthcare access in developing countries and areas with large health disparities. We are also focusing on initiatives to achieve "SDG 12: Responsible Consumption and Production" for the sake of proper pharmaceutical use.

Believing that we can contribute to the realization of a sustainable society only when our company and employees grow together as one, we remain committed to "work style reforms" in a bid to achieve a productive work style and work-life balance in accordance with "SDG 8: Decent Work and Economic Growth." With regard to "SDG 13: Climate Action" and related environmental challenges, we will make continued contributions by implementing environmentally friendly product development and distribution, everyday environmental activities, such as energy/resource conservation, and protection of biodiversity in the form of forest preservation activities by directors and employees.

Diversification and work style reforms

Sumitomo Dainippon Pharma has already committed itself to the provision of an environment in which individual employees are given the opportunity to fulfill their potential, regardless of gender, age, nationality, and or disability. More recently, our focus has been on empowering women, which is one of the key themes of diversification. Our goal is to raise the percentage of women in managerial positions to 10% or higher by 2020.

Having positioned 2017 as "Year One for Work Style Reforms," we have implemented a variety of initiatives that include enhancing awareness of the topic throughout the company by organizing seminars for all employees and training sessions for those in managerial positions. In fiscal 2018 and beyond, we will continue to promote wide-ranging initiatives in this regard such as office environment innovations and health promotion initiatives pursuant to the "Declaration of Health Innovation." In our case, both the content and style of work can differ significantly depending on the job category. As a result, while we are promoting group-wide measures aimed at addressing the issue of excessive working hours, such as "no overtime days," and greater utilization of paid leave, specific approaches at each work site are also necessary, as are considerations of new work styles that can yield maximum results within limited working hours. As a company, we provide institutional support by establishing systems and other offerings for these work site-specific approaches in order to maximize corporate value by achieving a virtuous cycle of work-life balance and greater productivity for employees.

Focusing on global health issues

Improving access to healthcare is one of the important missions of a pharmaceutical company. Sumitomo Dainippon Pharma is actively striving to improve access to healthcare in order to help achieve Goal 3 of the United Nations' Sustainable Development Goals: "Good Health and Well-being." Additionally, since we recognize that global health is a worldwide scale, we value the importance of SDG 17, "Partnership for the Goals," and are working towards solutions by collaborating with government agencies, international institutions, research institutions, and civil society. In September 2016, we began collaborating with the local government and NGOs in Cambodia with the objective of improving health for mothers and children through safe childbirth and proper child development. Moreover since January 2017, we have participated in a program with 23 of the world's pharmaceutical companies collaborating to improve access to healthcare in developing countries.

Continuing to uphold our social responsibilities

In order to continue to serve the world as a valued company that delivers innovative and effective pharmaceuticals to people, we focus all our efforts on researching and developing new drugs. At Sumitomo Dainippon Pharma, we believe that the objective of CSR management is to position ourselves through CSR activities as a company that continues to be trusted by society, shareholders, and suppliers; appreciated by patients and clients; and for whom our employees are happy to work. In order to achieve these objectives, it is important that each of us does his or her part in conducting corporate activities that are both earnest and dynamic and that are grounded always in our Declaration of Conduct, even in the severe business environment. At the same time, we must also be increasingly sensitive to the issues of social justice and fairness. We are committed to raising our corporate value by encouraging a willingness to tackle challenges and take the initiative among employees. This is the key to upholding our social responsibilities as a corporate group that operates in Japan and around the world.

Finally, on behalf of everyone at Sumitomo Dainippon Pharma, I would like to express our sincere gratitude to all stakeholders for your interest in the Company and request your continued understanding and support.

Promoting CSR-based management by utilizing the core subjects framework of ISO26000

Kazuhiro TakadaKazuhiro Takada
Executive Officer

Sumitomo Dainippon Pharma defines the practice of its Corporate Mission, "To contribute broadly to society through value creation based on innovative research and development activities for the betterment of healthcare and fuller lives of people worldwide," as CSR-based management. Sumitomo Dainippon Pharma sets forth its commitment to serve society in the Company's Corporate Mission, and the aim of its operations, which are focused on its stakeholders, in the Management Mission. Our Declaration of Conduct specifies the content of our Mission in more concrete terms, and serves as our basic approach to promoting CSR. We are committed to providing through our business activities the products that are truly needed, ensuring that these activities conform to our Declaration of Conduct, and conducting all of our activities as a responsible corporate citizen.

In promoting CSR-based management, we actively utilize the core subjects' framework of ISO 26000 to assist in practice in addition to valuing dialogue with stakeholders. We work to enhance our approach appropriately to meet the changes in the globalization of business and society with a focus on organizational governance, human rights, labour practices, the environment, fair operating practices (transparency and compliance), consumer issues, and community involvement and development.
Moreover, we have been striving to participate in several partnership initiatives globally to undertake "SDG 3: Ensure healthy lives and promote well-being for all at all ages" of the SDGs of the UN.