Management Emphasis on CSR

Through business activities founded on sound and music, the Yamaha Group strives to achieve its corporate objective of “Creating ‘Kando’* Together.” Since our establishment in 1887,we have endeavored to provide quality products and services,earning the trust of customers while securing steadily rising profits. Continuing to fulfill our role as a member of society in this way has enabled us to earn and maintain the support of our many stakeholders. Accordingly, Yamaha’s basic management policy places a strong emphasis on Corporate Social Responsibility (CSR) activities, expressing this commitment through a variety of activities and themes including product quality, customer satisfaction, procurement, environmental protection and public relations activities.
However, society today is experiencing rapid changes which are exacerbating various social problems, while expectations for the corporations in its midst have also increased. This prompted Yamaha in April 2008 to create a management philosophy shared across the entire Group, reaffirming and clarifying our relationships with each of our stakeholders: customers, shareholders, those who work with Yamaha, and society in general. In order to further strengthen the bonds of trust with each of our stakeholders, we are taking steps to ensure that all members of the Yamaha Group maintain a keen awareness of our corporate responsibility and contributions to society, and redouble their efforts in this regard. In this way, we hope to continue addressing the issues that society faces.
* ‘Kando’ (is a Japanese word that) signifies an inspired state of mind.

The Yamaha Group’s CSR activities are distinguished by their emphasis on using core business activities to contribute to the development of musical culture around the world. Music is a basic part of people’s daily lives, regardless of where in the world they live. It helps people to relax, and stimulates their emotions and feelings; it would not be an overstatement to describe music as another one of life’s necessities, transcending the basic physical requirements of food, shelter and clothing. In this context, Yamaha seeks to make the most of its strengths: technologies with a tradition spanning 120 years, as well as the latest in digital technology; refined creativity and artistry in the realms of sound and music; and an appreciation of the cultures and lifestyles of people the world over. By providing products and services that always satisfy and fulfill our customers’ love of music, we can contribute to the development of musical cultures and enrich lives worldwide. Furthermore, as the Yamaha Group expands its global operations, it will always seek to address the social issues that arise in each region where it operates, as well as global problems related to the limited natural resources of our planet. It is vital that we make contributions to these social themes, in order to fulfill our responsibilities as a member of society. The Yamaha Group will continue striving to help address social issues in a whole range of ways, focusing on those activities best suited to the particular nature of our businesses. To this end, we will seek to broaden communication with each of our stakeholders, make efforts to support cultural expression and educational development in each region, and assist the training of employees. We will also pursue more efficient use of raw materials, reducing the environmental impact of our development and production activities, and promote reforestation, among other measures.
To summarize, the Yamaha Group is focusing on its core business activities founded on sound and music, and leveraging its existing strengths to address some of the issues that face society. By doing so, we can fulfill the expectations of our stakeholders, enhance corporate value and further strengthen the Yamaha brand image.

The Yamaha Group is currently in the second year of its mediumterm management plan, “YGP2010,” which runs through fiscal 2009. Under this plan, we have designated business activities that relate to music, audio and network products as core businesses, occupying a business domain that we refer to as “The Sound Company.” The Group will concentrate its management resources on developing these core businesses in order to promote growth. At the same time, we will try to solidify our position and improve profitability in the “Diversification” business domain, which includes lifestyle-related products, recreation, molds/ components and other businesses. In “The Sound Company” domain, Yamaha intends to expand business in emerging markets, which are enjoying rapid economic growth, aiming to broaden the appeal of music and allow more people to enjoy its charms. We are also strengthening the guitar and professional audio equipment businesses to appeal to those who are not yet familiar with the capabilities and quality of the Yamaha Group. Furthermore, the Company is merging advanced acoustic technology with digital audio technology to create and market hybrid musical instruments, and developing music entertainment businesses that offer people new ways to experience and enjoy music. In these ways, the Company aims to continue expanding its operations and increasing earnings.
In order to progress with implementing our medium-term management plan, it is essential that all Yamaha Group employees— and particularly those who have direct contact with our customers and other music-lovers—share the same sense of values. Since this applies to every region and market where Yamaha operates, I have made a personal commitment to visiting our bases of operations around the world in an effort to promote communication.
Furthermore, by providing information on our operations in a prompt and appropriate manner, we will endeavor to make sure that the business goals of the Yamaha Group are clearly understood, thereby earning the trust, loyalty and mutual respect of our stakeholders as we work to achieve the goals of our business plans. To maintain the transparency and openness that forms the foundation for trust, we will continue working to improve our systems of corporate governance, implement programs to ensure that all employees understand compliance issues, and will endeavor to develop internal control systems to further improve the accuracy of these systems in the future.
As we look back at our 120-year history of accomplishments, and forward to another century in which the Yamaha brand will gain even brighter prominence, we pledge to work closely with all of our stakeholders to share the joy of music and create ‘kando’ that exceeds their expectations.