4_Morinaga Milk Sustainability Data Book 2021

[ Contents ]

Approach to Disclosure of Information on Sustainability

Human Resource Development

Editorial Policy

About Us

Corporate Mission

Measures for and Effects of COVID-19

Sustainability at Morinaga Milk

Seven Priority Issues

Health and Nutrition

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource

Development

Basic Approach System

KPIs

System for Developing Human Resources to Support Business

Implementing Health Management

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

We will focus on developing human resources who can realize the slogan "For Ever Brighter Smiles."

Morinaga Milk was founded over a century ago. Throughout its history, Morinaga Milk has fostered a positive corporate culture centering on a commitment to quality. Over the next 100 years, Morinaga Milk will continue to build a corporate culture in which employees can take steps toward the future and continue to grow for the smiles of customers and colleagues, while also valuing the achievements of the past.

To instill a corporate culture of embracing growth and challenge, it is essential for each and every employee to enhance their own skills. Toward this end, the company needs self-motivated employees who can define their own goals and take action to achieve outcomes.

As a company that aims for sustainable growth, it is crucial for each and every employee to be willing to better themselves, while the company needs to recognize its responsibility of developing human resources who can carry the torch of the company's future. As such, the culture of developing human resources will be instilled at various workplaces using continuous training. This is Morinaga Milk's vision for human resource development.

Approach to Human Resource Development

• Develop human resources who can recognize their roles and responsibilities while embracing the challenges of reform and innovation based on the corporate slogan and guiding principles.
• Strategically develop human resources who will bear core responsibilities in the future.
• Develop human resources who will contribute to the organization by respecting diversity and working collaboratively with others.
• Employees are to take the initiative and play an independent role in their own self growth while the company provides opportunities to foster such growth.
• Improve the leadership and training skills of senior employees who are responsible for developing human resources.

Morinaga Milk Sustainability Committee meetings, which are chaired by the president, are held twice a year for monitoring and reporting on the progress of KPIs. In addition, Morinaga Milk implements PDCA cycles, with the general managers of the relevant divisions responsible for "Priority Issue: Human Resource Development" and the general managers of the relevant departments responsible for promoting KPIs. Moreover, the Human Resource Department acts as the main department in charge of human resource development, while working collaboratively with the Manufacturing Division and Sales & Marketing Division.

Human Resource Development System

At Morinaga Milk, human resource development is implemented centering around the model of on-the-job training (OJT) where employees acquire specialized knowledge and skills through practical work and improve their abilities to execute job functions while gaining experiences. Through this, employees grow their experience and receive feedback from their superiors and senior colleagues thereby refining their skills and techniques.

Moreover, it is also important to learn outside of practical work in order to achieve growth. Therefore, Morinaga Milk provides a number of learning opportunities from off-the-job(Off-JT) programs including rank-based training and diversity support programs, to correspondence education, e-learning, and business schools under self-development support programs for employees who are taking the initiative to improve themselves.

Through the combination of the three programs: OJT, off-the-job(Off-JT) programs, and self-development support programs, it is the aim to develop a corporate culture that inspires individuals to seek self-improvement and embrace reform and innovation.

The specific initiatives under off-the-job(Off-JT) programs and self- development support programs are revised each year as the annual human resource development plan, with each development program being proposed and implemented.

Moreover, each department is in charge of their own training to enhance specialization among their staff. For example, the Manufacturing Division is taking the lead in hosting Morinaga Milk College with the goal of passing down manufacturing technologies, while the Sales & Marketing Division is taking charge of Morinaga Sales University in conducting training to improve sales skills.

[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource

Development

Basic Approach System

KPIs

System for Developing Human Resources to Support Business

Implementing Health Management

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Human Resource Development System

KPIs

[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource

Development

Basic Approach System

KPIs

System for Developing Human Resources to Support Business

Implementing Health Management

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

System for Developing Human Resources to Support Business

Disseminate the Corporate Slogan

In 2017, Morinaga Milk celebrated its centennial and established a new corporate slogan structure and slogan for the Morinaga Milk Group for the next 100 years.

In order to institute these ideas as fundamentals guiding all of our actions, it is important for employees to understand and integrate the corporate slogan into their daily duties. Therefore, various programs to promote the corporate slogan are being implemented.

Energy Survey

The Energy Survey is designed to understand the main factors that influence willingness to work and organizational culture revitalization. This can contribute to developing more effective improvement activities and human resources policies to address issues revealed in order to achieve a corporate culture where employees work with enthusiasm and energy.

The survey is conducted once a year targeting everyone involved with Morinaga Milk, including full-time employees, seconded workers, temporary workers, and employees of affiliated companies. The survey results of the entire company as well as by division are shared via feedback with the directors in charge, as well as head of each business site and organization. The results serve as important data for understanding the condition of the organization, and they are shared among these directors and managers, after which action plans for improving the workplace are discussed.

Morinaga Milk Awards

Morinaga Milk Group continues to challenge itself.

The Group expanded its in-house award system in FY 2018 by establishing the Morinaga Milk Awards, which are linked to some of our Guiding Principles, such as taking on challenges and working with vibrancy. Consisting of several awards, the Morinaga Milk Awards are given not only for achievements but also for actions and processes. The grand prize is decided through employee voting and broadcast online, serving as a device for company-wide sharing of experiences, wisdom and other benefits gained through various efforts. By giving praise from the entire Group to individuals, teams, organizations who have implemented the corporate philosophy, the Morinaga Milk Awards help promote self-determined action to further realize that philosophy.

Co-Creation of Aspirations Forums

The Co-Creation of Aspirations forum is held once a year in order to foster a sense of unison through understanding the corporate philosophy and guiding principles. In turn, this promotes the Morinaga Milk Group's management as a whole following one philosophy.

Each year, the forum is held under a different theme. In FY 2016, it was conducted as a workshop to establish the corporate philosophy itself, under the theme of "Creating a New Corporate Philosophy and Guiding Principles." In FY 2017, the theme was "Practical Application of Guiding Principles in Business Duties to Realize the Philosophy," while in FY 2018, the theme was "Discussion on Challenges and Improvement Activities by Organization in Promoting Corporate Philosophy and Guiding Principles." In FY 2019, the theme was "Deeper Exploration of the Important Issues Assessed in the Previous Fiscal Year and Drafting Practical Measures to Deal with Them." In 2020, the forum was held online in order to prevent the spread of COVID-19.

Feedback from those in attendance received included, "I was able to see the effect on team building by practicing the guiding principles. I felt a sense of mutual respect with a deepened understanding for one another. This made me want to try it at my own workplace," as well as "Prior to my attendance, I had wanted to make the workplace better but felt it was difficult to achieve on my own, but after this forum I figured it may be possible to make changes if I could gather more people who think alike."

[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource

Development

Basic Approach System

KPIs

System for Developing Human Resources to Support Business

Implementing Health Management

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Manager Workshops and Workplace Seminars

Morinaga Milk holds manager workshops and workplace seminars in order to develop human resources who can lead team members while fulfilling the vision for workplaces under the corporate philosophy and to empower each workplace to solve problems independently. At manager workshops, every year more than 50 managers participate, discussing matters about the development of team members. At workplace seminars, managers and members together discuss how to implement the corporate slogan in the workplace.

Participant comments included, "I was able to broaden my horizon by thinking about the issues faced by other workplaces, which served as a hint in finding solutions to issues at my own workplace" and "Participants ranged from newer managers to highly experienced ones. This served as an opportunity to experience other viewpoints and approaches."

Independent Growth of Each Individual Employee

Human Resource Management System

Morinaga Milk considers its people to be an important asset and is now developing a workplace environment where each and every person can fully contribute their competencies.

In 2007, Morinaga Milk launched a new human resources management system targeting all employees. The goal of this system is to increase employee motivation and enhance their skills by elevating employees' independence, their understanding of personnel evaluations, and the fairness of these evaluations.

Diversity and Inclusion Support Programs

As part of pursuing diversity and inclusion, Morinaga Milk offers a variety of training programs and seminars to support employees' diverse workstyles.

The Female Leader Training is held once annually. It involves female employees building their own unique management style during the course of their career unbound to the status quo while planning for various life events.

The Work × Child-raisingPower-Up Seminar is held once annually. It involves learning a highly motivating unique workstyle tailored to one's job so that employees can produce meaningful results in both quantity and quality despite a limited amount of time. Close to 90 employees have taken part since 2016.

Number of Participants in Female Leader Training

Morinaga Milk College

Morinaga Milk College is an internal educational institution in the Manufacturing Department tasked with transferring technology and skills and maintaining and improving quality technology, and it offers a variety of employee education. The college offers a Follow-up course, a Hop-up course, and a Level-up course aimed at the acquisition of basic knowledge of safety measures and milk technologies for engineering-related employees from their first to their third year at Morinaga Milk.

Later on, the college provides the selective Step-up course (product category specific training), the Jump-up course (training for workplace leaders), and Meister training (improving technical and skill levels) to aid the training of young engineers.

In terms of practical training courses, the college offers various kinds of specialist training for core technologies.

Measurement management practical training, for example, teaches the technical basics of accurately measuring the volume of raw materials and products, while the Microorganism expert course is aimed at improving techniques and skills for microbial testing. Such courses help to cultivate various specialists who will play an important role in maintaining and enhancing quality.

[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource

Development

Basic Approach System

KPIs

System for Developing Human Resources to Support Business

Implementing Health Management

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Diagram of Training System (Production)

Number of Trainees

Follow-up course

Acquisition of basic technologies and skills- - 165 151 206 (established in 2018)

Hop-up course

Acquisition of basic technologies and skills 53 111 103 155 166 and strengthening work execution capabilities

(includes 3rd year employees up until 2017)

Jump-up course

Encouraging awareness of expected roles to 33 33 32 16 - develop workplace leaders

Global Human Resource Development

Morinaga Milk is focusing on developing and growing its overseas business with the aim of becoming a "global company that is a unique presence." Toward this end, in addition to committing management resources, Morinaga Milk is developing human resources not only proficient in English, but also with the ability to build personal relationships with people of differing backgrounds and values, convey one's needs accurately, and build consensus with others during the course of business.

Participants in Global Human Resources Development Programs (Total Number)

Overseas Intercultural Learning Challenge Training

Since 2017, we have been conducting a week-long training program at overseas business locations with the aim of promoting understanding how worthwhile working outside Japan can be and heightening motivation for overseas businesses. By communicating in English, experiencing other cultures, and listening to what overseas subsidiaries have to say, employees have the opportunity to feel their own potential and the company's potential in the global market.

In FY 2020, the program contact was adjusted for an online format in order to prevent the spread of COVID-19. With the aim of developing human resources who are capable of realizing results in every kind of business market around the world, we are providing employees with opportunities to develop communication skills that transcend cultural differences and polish skills for writing business e-mails in English. In FY 2020, 36 people participated.