Corporate Social Responsibility (CSR) of Sony Corporation

 ASSIGNMENT ON Social Responsibility of Sony Corporation Course Title: Business Environment & Course code: BUS 201

 SUBMITTED TO

Kazi Tashkin Huda

Lecturer  World University of Bangladesh  Submitted by Group: Grou p: E (Recourse with 48E)

Roll Khondoker Amin Uzzaman 1757  Alida Islam 1731  Jenifa Mahmud  1743 Shovon Kumar Das 1668 Rokshana Parven 1969 Saila Haq Urmi 1563 Name

Batch Batch: 33(A) Batch: 31(G) Batch: 31(G) Batch: 31(E) Batch: 36 Batch: 31(C)

ID ID: WUB01/11/33/1757 ID: WUB01/11/31/1731 ID: WUB01/11/31/1743 ID: WUB01/11/31/1668 ID: WUB01/11/36/1969 ID: WUB01/11/31/1563

Department of Business Administration Date of submission: 01 Dec 2014

Letter of Transmittal 01 Dec 2014 To Kazi Tashkin Huda Lecturer, Department of Business Administration World University of Bangladesh Dhanmondi, Dhaka Subject: Submission of assignment on “Social Responsibility of Sony Corporation ” Dear Madam, Here is the assignment that we assigned on the topic as per your request. The assignment has been completed by the knowledge that we have gathered from the course “Social Responsibility of Sony Corporation” . We are thankful to all those persons who provided us important information and gave us valuable advices. We would be happy if you read the report carefully and we will be trying to answer all the questions that you have about the assignment. We have tried our label best to complete this assignment meaningfully and correctly, as much as possible. We do believe that our tiresome effort will help you to get ahead with this sort of venture. In this case it will be meaningful to us. However, if you need any assistance in interpreting this assignment please contact us without any kind of hesitation. Thanking you. Sincerely Yours Khondoker Amin Uzzaman

Batch: 33(A)

ID: WUB01/11/33/1757

Alida Islam

Batch: 31(G)

ID: WUB01/11/31/1731

Jenifa Mahmud

Batch: 31(G)

ID: WUB01/11/31/1743

Shovon Kumar Das

Batch: 31(E)

ID: WUB01/11/31/1668

Rokshana Parven

Batch: 36

ID: WUB01/11/36/1969

Saila Haq Urmi

Batch: 31(C)

ID: WUB01/11/31/1563

Program: BBA World University of Bangladesh

Chapter One: 1.0 All about Sony Corporation  ............................................................................................. 1 1.1 CEO of Sony ......................................................................................................................................... 2 1.2 Business units ...................................................................................................................................... 2

Chapter Two: 2.0 Social Responsibility .....................................................................................................

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2.1 Corporate social responsibility (CSR) ................................................................................................ 10

Chapter Three : 3.0 Social Responsibility or CSR of Sony Corporation .................................................... 12 3.1 CSR at Sony ........................................................................................................................................ 12 3.2 Verifying Key CSR Agenda and Determining Materiality ....................... ................................ .................. .................. .................. ................ ....... 13 3.3 CSR / Environment of Sony ............................................................................................................... 14 3.4 Youth were on assignment for documenting fo llowing Sony’s CSR projects  ................................... 16 3.5 Sony Picture The Greener Greene r Word .................................. ................. .................................. ................................... .................................... ................................. ............... 18 3.6 Sony and the Environment ................................................................................................................ 21 3.7 CSR Highlights ................................................................................................................................... 22

4.0 Social Responsibility of Sony Corporation in Banglades   ..................................................................... 25 4.1 Model Study of Community Electrification in Bangladesh Using a Long-life Storage Battery System ........................................................................................................................................ 25 4.2 Solving Social Issues in Urban Bangladesh by Utilizing IC Card Technology T echnology .................. ........................... ................... .......... 28

5.0 Key Findings   ..........................................................................................................................................

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6.0 Conclusion  ............................................................................................................................................

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7.0 Reference/Bibliography Reference/Bibliography ......................................................................................................................

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Sony Corporation Sony Corporation Sony  Corporation commonly referred to as Sony , is a Japanese multinational conglomerate corporation headquartered in Kōnan Minato, Tokyo, Japan . Its diversified business is primarily focused on the electronics (TV, Gaming Consoles, and Refrigerators), game, entertainment and financial services sectors. The company is one of the leading manufacturers of electronic products for the consumer and professional markets. Sony is ranked 87th on the 2012 list of Fortune Global 500.

Sony Headquarters at Sony City in Minato, Tokyo

Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its four operating segments  –  Electronics (including video games, network services and medical business), Motion pictures, Music and Financial Services. These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Mobile Communications (formerly Sony Ericsson), and Sony Financial. Sony is among the Worldwide Top 20 Semiconductor Sales Leaders and third-largest television manufacturer in the world, after Samsung Electronics and LG

Electronics. The Sony Group is a Japan-based corporate group primarily focused on the Electronics (such as AV/IT products and components), components), Game (such as PlayStation), Entertainment (such as motion pictures and music), and Financial Services (such as insurance and banking) sectors. The group consists of Sony Corporation (holding and electronics), Sony Computer Entertainment (games), Sony Pictures Entertainment (motion pictures), Sony Music Entertainment (music), Sony/ATV Music Publishing (music publishing), Sony Financial Holdings (financial services) and others.

Its founders Akio Morita and Masaru Ibuka derived the name from sonus, the Latin word for sound, and also from the English slang word "sonny", since they considered themselves to be "sonny boys", a loan word into Japanese which in the early 1950s connoted smart and presentable young men. The company's current slogan is BE MOVED. Their former slogans were make.believe (2009 –2014) and like.no.other (2005 –2014).

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Kazuo Hirai

Kazuo "Kaz" Hirai (born December 22, 1960) is the President and CEO of Sony Corporation. He also serves as a member of the board of Sony Computer Entertainment, Inc., a wholly owned subsidiary of Sony. He was noted by Entertainment Weekly as one of the most powerful executives in the entertainment industry. Hirai became the President and CEO of Sony on April 1, 2012. Sony Corporation On April 1, 2011, Hirai was promoted to

CEO of Sony 

Representative Corporate Executive Officer and Executive Deputy President of Sony Corporation. He oversaw the Consumer Products & Services Group. Hirai was speculated to become the successor to Howard Stringer, the current sitting president and CEO of Sony Corporation, who was then expected to step down in 2013.

On February 1, 2012, Sony announced that Hirai has been appointed as President and Chief Executive Officer, effective April 1, 2012. He was appointed to the Board at the annual shareholders meeting on June 27, 2012.

Sony offers a number of products in a variety of product lines around the world.Sony has developed a music playing robot called Rolly, dog-shaped robots called AIBO and a humanoid robot called QRIO. As of 1 April 2012, Sony is organized into the following business segments: Imaging Products & Solutions (IP&S), Game, Mobile Products & Communications (MP&C), Home Entertainment & Sound (HE&S), Devices, Pictures, Music, Financial Services and All Other.The network and medical businesses are included in the All Other.

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Sony Corporation

Sony Corporation is the electronics business unit and the parent company of the Sony Group. It primarily conducts strategic business planning of the group, research and development (R&D), planning, designing and marketing for electronics products. Its subsidiaries such as Sony EMCS[clarification needed] Corporation (6 plants in Japan), Sony Semiconductor Corporation (7 plants in Japan) and its subsidiaries outside Japan (Brazil, China, England, India, Malaysia, Singapore, South Korea, Thailand, Ireland and United States) are Sony at Westfield Riccarton shopping centre in responsible for manufacturing as well as product Christchurch, New Zealand engineering (Sony EMCS[clarification needed] is also responsible for customer service operations). In 2012, Sony rolled most of its consumer content services (including video, music, and gaming) into the Sony Entertainment Network.

Audio

Sony produced the world's first portable music player, the Walkman in 1979. This line fostered a fundamental change in music listening habits by allowing people to carry music with them and listen to music through lightweight headphones. Walkman originally referred to portable audio cassette players. The company now uses the Walkman brand to market its portable audio and video players as well as a line of former Sony Ericsson mobile phones. Sony utilized a related brand, Discman, to refer to its CD players. It dropped this name in the late l ate 1990s.

Computing

Sony sells many of its computer products using the VAIO brand. Sony produced computers (MSX home computers and NEWS workstations) during the 1980s, exclusively for sale in the Japanese market. The company withdrew from the computer business around 1990. Sony entered again into the global computer market under the new VAIO brand, began in 1996. Short for "Video Audio Integrated Operation", the line was the first f irst computer brand to highlight visualaudio features. Sony faced considerable controversy when some of its laptop batteries exploded and caught fire in 2006, resulting in the largest computer-related recall to that point in history. 3

In a bid to join the tablet computer market, the company launched its Sony Tablet line of Android tablets in 2011. Since 2012, Sony's Android products have been marketed under the Xperia brand used for its smartphones. On 4 February 2014, Sony announced that it will sell its VAIO PC business due to poor sales and Japanese company Japan Industrial Partners (JIP) will purchase the VAIO brand, with the deal finalized by the end of March 2014. However, in a news release on the Sony Global website, published on 5 February, the corporation’s states: "Sony continues to address various options for

the PC business, but Sony has no further comments."

Photography

Sony offers a wide range of digital cameras. Point-and-shoot models adopt the Cyber-shot name, while digital single-lens reflex models are branded using Alpha. The first Cyber-shot was introduced in 1996. At the time, digital cameras were a relative novelty. Sony's market share of the digital camera market fell from a high of 20% to 9% by 2005. Sony Alpha DSLR

Sony entered the market for digital single-lens reflex cameras in 2006 when it acquired the camera business of Konica Minolta. Sony rebranded the company's line of cameras as its Alpha line. Sony is the world's third largest manufacturer of the cameras, behind Canon and Nikon respectively.

Video

In 1968 Sony introduced the Trinitron brand name for its lines of aperture grille cathode ray tube televisions and (later) computer monitors. Sony stopped production of Trinitron for most markets, but continued producing sets for markets such as Pakistan, Bangladesh and China. Sony discontinued its series of Trinitron computer monitors in 2005. The company discontinued the last Trinitron-based television set in the USA in early 2007. The end of Trinitron marked the end of Sony's analog television sets and monitors.

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Sony used the LCD WEGA name for its LCD TVs  until summer 2005. The company then introduced the BRAVIA name. BRAVIA is an in house brand owned by Sony which produces high-definition LCD televisions, projection TVs and front projectors, home cinemas and the BRAVIA home theatre range. All Sony highdefinition flat-panel LCD televisions in North America have carried the logo for BRAVIA since 2005. Sony is the third-largest maker of televisions in the world. As of 2012, Sony's television business has been unprofitable for eight years. In December 2011, Sony agreed to sell all stake in an LCD joint venture with Samsung Electronics for about $940 million. On 28 March 2012, Sony Corporation and Sharp Corporation announced that they have agreed to further amend the joint venture agreement originally executed by the parties in July 2009, as amended in April 2011, for the establishment and operation of Sharp Display Products Corporation ("SDP"), a joint venture to produce and sell large- sized LCD panels and modules. Sony also sells a range of DVD players. It has shifted its focus in recent years to promoting the Blu-ray format, including discs and players. Semiconductor and component

Sony produces a wide range of semiconductors and electronic components including image sensors, laser diodes, system LSIs, mixed-signal LSIs, OLED panels, etc. The company has a strong presence in the image sensor market. Sony-manufactured CCD and CMOS image sensors are widely used in digital cameras, smartphones and tablet computers. Medical-related business

Sony has targeted medical, healthcare and biotechnology business as a growth sector in the future. The company acquired iCyt Mission Technology, Inc. (renamed Sony Biotechnology Inc. in 2012), a manufacture of flow cytometers, in 2010 and Micronics, Inc., a developer of microfluidics-based diagnostic tools, in 2011. In 2012, Sony announced that it will acquire all shares of So-net Entertainment Corporation, which is the majority shareholder of M3, Inc., an operator of portal sites (m3.com, MR-kun, MDLinx and MEDI:GATE) for healthcare professionals.

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On 28 September 2012, Olympus and Sony announced that the two companies will establish a  joint venture to develop new surgical endoscopes with 4K resolution  (or higher) and 3D capability. Sony Olympus Medical Solutions Inc. (Sony 51%, Olympus 49%) was established on 16 April 2013. On 28 February 2014, Sony, M3 and Illumina established a joint venture called P5, Inc. to provide a genome analysis service for research institutions and enterprises in Japan.[38]

Sony Mobile Communications

Sony Mobile Communications AB (formerly Sony Ericsson Mobile Communications AB) is a multinational mobile phone manufacturing company headquartered in Tokyo, Japan and a wholly owned subsidiary of Sony Corporation. In 2001, Sony entered into a joint venture with Swedish Sony Xperia Z2 telecommunications company Ericsson, forming Sony Ericsson. Initial sales were rocky, and the company posted losses in 2001 and 2002. However, SMC reached a profit in 2003. Sony Ericsson distinguished itself with multimedia-capable mobile phones, which included features such as cameras. These were unusual for the time. Despite their innovations, SMC faced intense competition from Apple's iPhone, released in 2007. From 2008 to 2010, amid a global recession, SMC slashed its workforce by several thousand. Sony acquired Ericsson's share of the venture in 2012 for over US$1 bil lion. In 2009, SMC was the fourth-largest mobile phone manufacturer in the world (after Nokia, Samsung and LG). By 2010, its market share had fallen to sixth place. Sony Mobile Communications now focuses exclusively on the smartphone market under the Xperia name.

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Sony Computer Entertainment

The PlayStation 4 is the best-selling video game console of all time.

Sony Computer Entertainment is best known for producing the popular line of PlayStation consoles. The line grew out of a failed partnership with Nintendo. Originally, Nintendo requested for Sony to develop an add-on for its console that would play Compact Discs. In 1991 Sony announced the add-on, as well as a dedicated console known as the "Play Station". However, a disagreement over software licensing for the console caused the partnership to fall through. Sony then continued the project

independently. Launched in 1994, the first PlayStation gained 61% of global console sales and broke Nintendo's long-standing lead in the market. Sony followed up with the PlayStation 2 in 2000, which was even more successful. The console has become the most successful of all time, selling over 150 million units as of 2011. Sony released the PlayStation 3, a high-definition console, in 2006. It was the first console to use the Blu-ray format, although its expensive Cell processor made it considerably more expensive than competitors Xbox 360 and Wii. Early on, poor sales performance resulted in significant losses for the company, pushing it to sell the console at a loss. The PlayStation 3 sold generally more poorly than its competitors in the early years of its release but managed to overtake the Xbox 360 in global sales later on. It later introduced the PlayStation Move, an accessory that allows players to control video games using motion gestures. Sony extended the brand to the portable games market in 2005 with the PlayStation Portable (PSP). The console has sold reasonably, but has taken a second place to a rival handheld, the Nintendo DS. Sony developed the Universal Media Disc (UMD) optical disc medium for use on the PlayStation Portable. Early on, the format was used for movies, but it has since lost major studio support. Sony released a disc-less version of its PlayStation Portable, the PSP Go. The company went on to release its second portable video game system, PlayStation Vita, in 2011 and 2012. Sony launched its fourth console, the PlayStation 4, on 15 November 2013. On 18 March 2014, at GDC, President of Sony Computer Entertainment Worldwide Studios Shuhei Yoshida announced their new virtual reality technology dubbed Project Morpheus for PlayStation 4. The headset, still in prototype form, will bring VR gaming and non-gaming software to the company's new console.

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Sony Pictures Entertainment

Sony Pictures Entertainment, Inc. (SPE) is the television and film production/distribution unit of Sony. With 12.5% box office market share in 2011, the company was ranked third among movie studios. Its group sales in 2010 were US$7.2 billion. The company has produced many notable movie franchises, including Spider-Man, The Karate Kid, and Men in Black. It has also produced the popular television game shows Jeopardy! and Wheel of Fortune. Sony Pictures Plaza, next to the main studio lot of Sony Pictures Entertainment in Culver City

Sony entered the television and film production market when it acquired Columbia Pictures Entertainment in 1989 for $3.4 billion. Columbia lives on in the Columbia TriStar Motion Picture Group, a subsidiary of SPE which in turn owns Columbia Pictures and TriStar Pictures. SPE's television division is known as Sony Pictures Television. For the first several years of its existence, Sony Pictures Entertainment performed poorly, leading many to suspect the company would sell off the division. Sony Pictures Entertainment encountered controversy in the early 2000s. In July 2000, 2000, a marketing executive working for Sony Corporation created a fictitious film critic, David Manning, who gave consistently good reviews for releases from Sony subsidiary Columbia Pictures that generally received poor reviews amongst real critics. Sony later pulled the ads, suspended Manning's creator and his supervisor and paid fines to the state of Connecticut and to fans who saw the reviewed films in the US. In 2006 Sony started using ARccOS Protection on some of their film DVDs, but later issued a recall.

Sony Music Entertainment

Sony Music Entertainment (also known as SME or Sony Music) is the second-largest global recorded music company of the "big four" record companies and is controlled by Sony Corporation of America, the United States subsidiary of Japan's Sony. The company owns full or partial rights to the catalogues of Michael Jackson, The Beatles, Usher, Eminem, Akon, and others. In one of its largest-ever acquisitions, Sony purchased CBS Record Group in 1987 for US$2 billion. In the process, Sony gained the rights to the catalogue of Michael Jackson, considered by the 8

Guinness Book of World Records to be the most successful entertainer of all time. The acquisition of CBS Records provided the foundation for the formation of Sony Music Entertainment, which Sony established in 1991. In 2004, Sony entered into a joint venture with Bertelsmann AG, merging Sony Music Entertainment with Bertelsmann Music Group to create Sony BMG. In 2005, Sony BMG faced a copy protection scandal, because its music CDs had installed a controversial feature on users' computers that was posing a security risk to affected users.[citation needed] In 2007, the company acquired Famous Music for US$370 million, gaining the rights to the catalogues of Eminem and Akon, among others. Sony bought out Bertelsmann's share in the company and formed a new Sony Music Entertainment in 2008. Since then, the company has undergone management changes. Environmental record

In November 2011, Sony was ranked 9th (jointly with Panasonic) in Greenpeace's Guide to Greener Electronics. This chart grades major electronics companies on their environmental work. The company scored 3.6/10, incurring a penalty point for comments it has made in opposition to energy efficiency standards in California. It also risks a further penalty point in future editions for being a member of trade associations that have commented against energy efficiency standards. Together with Philips, Sony receives the highest score for energy policy advocacy after calling on the EU to adopt an unconditional 30% reduction target for greenhouse gas emissions by 2020. Meanwhile, it receives full marks for the efficiency of its products. In 2007, Sony ranked 14th on the Greenpeace guide. Sony fell from its earlier 11th place ranking due to Greenpeace's claims that Sony had double standards in their waste policies. Since 1976, Sony has had an Environmental Conference. Sony's policies address their effects on global warming, the environment, and resources. They are taking steps to reduce the amount of greenhouse gases that they put out as well as regulating the products they get from their suppliers in a process that they call "green procurement". Sony has said that they have signed on to have about 75 percent of their Sony Building running on geothermal power. The "Sony Take Back Recycling Program" allow consumers to recycle the electronics products that they buy from Sony by taking them to eCycle (Recycling) drop-off points around the U.S. The company has also developed a biobattery that runs on sugars and carbohydrates that works similarly to the way living creatures work. This is the most powerful small biobattery to date. In 2000, Sony faced criticism for a document entitled "NGO Strategy" that was leaked to the press. The document involved the company's surveillance of environmental activists in an attempt to plan how to counter their movements. It specifically mentioned environmental groups that were trying to pass laws that held electronics-producing companies responsible for the cleanup of the toxic chemicals contained in their merchandise.

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Social responsibility responsibility is an ethical framework which suggests that an entity, be it an organization

or individual, has an obligation to act for the benefit of society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. A trade-off may exist between economic development, in the material sense, and the welfare of the society and environment. Social responsibility means sustaining the equilibrium between the two. It pertains not only to business organizations but also to everyone who’s any action impacts the environment. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals. Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. For instance if a company follows the United States Environmental Protection Agency (EPA) guidelines for emissions on dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns. “A significant element of current thinking about privacy, however, stresses "self-regulation" rather than market or government mechanisms for protecting personal information”.  According to some experts, most rules and regulations are formed due to public outcry, which threatens profit maximization and therefore the well-being of the shareholder, and that if there is not outcry there often will be limited regulation. Critics argue that Corporate social responsibility (CSR) distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful corporations though there is no systematic evidence to support these criticisms. A significant number of studies have shown no negative influence on shareholder results from CSR but rather a slightly negative correlation with improved shareholder returns.

Corporate Social Responsibility or CSR  has been defined by Lord Holme and Richard Watts in The World Business Council for Sustainable Development’s publication ‘Making Good Business Sense’ as “…the continuing commitment by business to behave ethically and contribute to economic

development while improving the quality of life of the workforce and their families as well as the local community and society at large". CSR is one of the newest management strategies where companies try to create a positive impact on society while doing business. Evidence suggests that CSR taken on voluntarily by companies will be much more effective than CSR mandated by 10

governments. There is no clear-cut definition of what CSR comprises. Every company has different CSR objectives though the main motive is the same. All companies have a two point agenda- to improve qualitatively (the management of people and processes) and quantitatively (the impact on society). The second is as important as the first and stake holders of every company are increasingly taking an in terest in “the outer circle”-the activities of the company and how these are impacting the environment and society.

CSR Approaches

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Sony  Our companies are known known for creating products that enrich people's lives. Through Sony Corporation of America and its operating companies, we’re equally dedicated to improving

people's lives. Our commitment commitment extends to helping local communities, communities, fostering better educational systems, supporting the arts and culture, helping disadvantaged youth, protecting and improving the environment and encouraging employee volunteerism. Our strategic philanthropy and corporate social responsibility (CSR) efforts are aligned to our key businesses and focus on three distinct areas: arts and culture, technology and the environment, with a particular emphasis emphasis on education in each of those areas. areas. We are also quick to provide assistance when when large-scale large-scale disasters strike. We've helped victims of major hurricanes, hurricanes, earthquakes, tsunamis and wildfires and other natural disasters. The notion of corporate citizenship citizenship is deeply embedded in the culture culture of Sony in America. We're proud of the programs and partnerships that have touched thousands of lives throughout the U.S. and of the thousands of Sony employees who have given generously of themselves in support of our goals.

Sony  "It is the core corporate responsibility of Sony Group to the society to pursue its corporate value enhancement through innovation and sound business practice." (Sony Group Code of Conduct, adopted in May 2003)

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Sony's corporate responsibility reflect its implementing practices; realize products, content that excite; assisting in which we helping to shape sustainable believes that both benefit enhance

social (CSR) activities philosophy of sound business innovating to services and inspire and the communities operate; and a better, more society. Sony these activities society and corporate value.

Key Csr Agenda

Objective of Conducting Materiality Assessment

Sony currently promotes CSR initiatives in line with its CSR agenda, which sets seven key areas of focus - corporate governance, compliance, human resources, responsible sourcing, quality and services, environment and community - with the aim of strengthening its operating foundation and continuously enhancing its corporate value. Stakeholder input on CSR-related issues and suggestions is fed back to management and to pertinent Sony departments (e.g., legal, compliance, environment, product quality, procurement and human resources), to be incorporated into key actions, including the formulation of Sony Group policies. Sony's CSR section is tasked with monitoring the progress of initiatives and disclosing information about Sony's efforts by preparing CSR reports and promoting dialogue with stakeholders.

CSR Organizational Structure

To align and respond effectively to evolving social imperatives and changes in the business environment, Sony recently conducted a CSR materiality assessment with BSR (Business for Social Responsibility), an independent organization with expertise in global CSR trends and international standards, with the aim of validating its CSR agenda by incorporating the perspectives of stakeholders and to identify emerging CSR topics relevant to new business areas.

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CSR Materiality Assessment Assessment Process

The Sony Group is a global organization with a broad business portfolio. Sony is engaged in the development, design, manufacture, and sale of various kinds of electronic equipment and devices for consumer and professional markets as well as game consoles and software. Sony is also engaged in the production and distribution of motion pictures, television programs, music, and digital networks. Further, Sony is also engaged in various financial services businesses through its Japanese insurance subsidiaries and banking operations through a Japanese Internet-based banking subsidiary. Given the diversity of the Group's operations, the expectations of its stakeholders regarding its CSR initiatives also vary. Sony views CSR materiality assessment as a process for understanding issues of importance to multi-stakeholders as well as business and validating its CSR agenda which will help us prioritize our CSR initiatives. In conducting the CSR materiality analysis, we first identified global CSR issues of particular relevance to Sony. The Company then looked l ooked at issues that are most significant today as well as emerging issues to its external stakeholders, which include nongovernmental organizations (NGOs), customers, and socially responsible investors, as well as at stakeholders' views regarding the changes in roles and responsibilities of corporations. Sony then assessed those issues likely to have the most importance to business and identified topics that are material from both a stakeholder and a business perspective.

Sony  Youth on Assignment (YoA)

Working in conjunction with the World Photography Organization (WPO), as well as collaborations between various NPOs, the Youth on Assignment programme harnesses the power of imaging to generate awareness of some of the challenges currently confronting various sectors of the global community.

Sony encourages talented students, including participants of the Sony World Photography Awards Student Focus programme living in communities nearby Sony's CSR projects to take part. Cameras and equipment donated by Sony will be used at their school to sustain further educational opportunities.

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Programme Outline

Programme Outline

By documenting the work being undertaken by various NPOs worldwide, the Youth on Assignment programme provides aspiring photographers and videographers with a training ground in which to take their first steps towards realizing career ambitions and dreams. The programme also provides them with an opportunity to see and learn about global issues and to use their skills as photographers photographers and videographers to instigate social change.

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EYE SEE UNICEF Child Photography Workshop

The EYE SEE Photography Workshop encourages visual literacy among children, and increases involvement in understanding and promoting positive social change. Sony has been supporting EYE SEE since 2006, and been showcasing children's photography and messages around the world. Using digital photography, these workshops provide a mechanism for children to present, through imagery, their views on the world, and to communicate challenges that may otherwise be difficult to share with the wider community. It also provides an opportunity to learn a new creative medium of expression, and an opportunity for social participation. In April 2013, through collaboration with WPO, one ©YoA/Nicholas Walton-Healey student of the Royal Melbourne Engineering University in Australia participated in the EYE SEE Workshop in Darwin. Under the guidance of Professor Mark Geller, he documented children participated EYE SEE workshop, and families and community surrounding these children.

South Africa Mobile Library Project

©Nina Grindlay

SAPESI, a NPO based in South Africa, leads this project driven by its goal of increasing literacy. SAPESI donates mobile library bus to the South African Department of Basic Education to carry books to lend to teachers and pupils in primary education around the country, and provide operational support. At Sony, employees of Sony Group companies in English-speaking countries collect and donate children’s books in English, and we also donate purchase funds for children’s books writte n in indigenous languages.

Details of the South Africa Mobile Library Project Youth on Assignment partnered with three schools in South Africa who all took part in a project to document the activities of mobile library buses which travelled around various remote areas 16

and schools with initiative of local NPO SAPESI. Using photographic equipment donated by Sony, each school recorded activities in its community throughout the year.

Malawi Folktales Project

Malawi, a landlocked country in the southern part of the African continent, is full of folktales and children’s

stories that have been passed down orally through the generations. However, as they are oral stories, almost none of them have ever been bee n recorded in print or audio. As the storytellers age and it becomes harder and harder to pass their stories on, Sony is working to help record these valuable intangible cultural assets as videos and audio by providing equipment to UNESCO and the ©Emanuel Michel Mawanyongo Global Future Charitable Trust which are spearheading this venture, as well as having our engineers provide technical guidance on how to operate this equipment. Details of the Malawi Folktales Project

Two students from the University of Malawi - The Polytechnic took part in a project operated by Sony, UNESCO and Global Future Charitable Trust to document the tradition and culture of folktales in Malawi over four days in July, 2012. Professional photographers taught the use of photographic equipment, and helped during shooting and the students recorded each step.

WPO(The World Photography Organisation) Organisation)

Creators of the *Sony World Photography Awards, the World Photography Organisation supports professional, amateurs and student photographers worldwide. It delivers various initiatives including the Student Focus programme and involves photographers in commercial, cultural and educational activities.

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Sony  World  World Photography Award

The Sony World Photography Awards is one of the world’s largest photography competitions. They provide an opportunity for international exchange among professional, amateur and student photographers. Sony has sponsored these awards since 2007.

Sony 

Partnering for Our Future 

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Sony Pictures has teamed up with numerous non-profits and other organizations dedicated to advancing environmental causes that promote and inspire more green practices in the communities where we live and work. This small sampling of relationships demonstrates the broad range of activities and partners Sony Pictures engages with each year in our efforts to maximize sustainable practices both in our business and in our communities. Some of the groups the company supports include: TreePeople - For more than a decade, Sony Pictures has provided support for TreePeople through the Sony Pictures Urban Green Fund. The fund provides resources for the company's employees to become trained Citizen Foresters and to develop tree planting projects in their communities. Sony Pictures is also a sponsor of TreePeople's Parks Program, a partnership that will continue through 2013 and help expand its work in neighborhoods through the planting and caring for trees in parks. The company was a proud Tree Honoree at the organization's 2010 An Evening Under the Harvest Moon, where it was recognized for "longstanding commitment to environmental sustainability and picturing a greener world." Habitat for Humanity - Two projects were completed with Habitat for Humanity of Greater Los Angeles, including a 10-unit development consisting of five duplexes which

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were slated to be the first LEED certified housing development in the city of Lynwood. Sony Pictures has donated to Habitat for Humanity over a thousand tons of set material and props, which are used in the construction of new homes or sold in HoH’s Home 

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Improvement Store located in Gardena. Alliance for Climate Education (ACE) - The movie Bad Teacher was shot on location at three schools in Los Angeles, California. ACE, The Environmental Media Association and Sony Pictures came together to bring educational lectures to these schools and start a gardening program at two of them. The company also funded school trainings and lectures across Los Angeles. California State Parks - Sony Pictures' employees volunteered with the California State Parks, Los Angeles Audubon Society and interns from the Dorsey High School Baldwin Hill s Greenhouse Program on a park restoration project at the Baldwin Hills Scenic Overlook located in Culver City. Over 150 employees and Dorsey High School students removed invasive plants from the hillside and helped to restore the Overlook to its natural habitat. Volunteers removed over 2000 cubic feet of non-native non -native plant material from the park.

Global Corporate Social Responsibility Responsibility

Sony Pictures Entertainment's Global Corporate Social Responsibility handles the studio's strategic philanthropic efforts, cultural participation and community outreach activities with particular emphasis on the company's involvement close to home here in Culver City. Sony Pictures is dedicated to arts education initiatives, workforce development, the environment and celebrating diversity. Sony Pictures Entertainment is firmly committed to the principles of good corporate citizenship. While our business is to create outstanding entertainment for audiences worldwide, we feel equally responsible for making a positive impact on the quality of life in and around our community.

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Greening the Footprint of our Productions

Sony Pictures requires its productions to follow certain green practices during filming, helping to create a much smaller overall environmental footprint. Each Columbia and Screen Gems feature and all U.S.-based television series have five deliverables to track during the course of the shoot, and turn in when they wrap:     

Turn in a Carbon Footprint Calculator (to assess greenhouse gas emissions); Complete a Best Practices Green Production Checklist for each department; Enforce a no-idling rule for transportation vehicles; Report lumber purchases; and Submit an eco-vendor list.

We also recommend all shows contract with a green caterer and eliminate all disposable water bottles from set. The information is incorporated as part of the Sony Pictures greenhouse gas inventory towards the company's 2016 and 2020 carbon goals. Additionally, this information is used to target our reductions activities and to find and share best practices with future productions. Because no two productions are alike, many Sony Pictures shows have come up with creative ways to be more sustainable, from re-using re -using shoeboxes to fill out shopping bags that characters carry (Rules of Engagement) to offering on-set battery recycling for the crew (Community) to break dancing across a reclaimed-wood dance floor (Battle of The Year)!

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Sony  Be moved by an amazing viewing experience supported by energy efficiency technology

Ensuring LED backlight brightness

Much of the energy consumed by a LCD TV is from the backlight, which illuminates the screen. Compared to HD TVs, 4K sets require more LEDs in the backlight, because the light must pass through more pixels. One way to improve energy efficiency is to reduce the number of LEDs while making each one brighter. However, because brighter backlighting may undermine picture quality –by causing faded colors, for example –steps must be taken to ensure picture quality when increasing LED brightness. For the X85B series, we introduced much brighter LED backlighting while maintaining the vibrancy and wide gamut that Sony TVs are known for. Here, careful engineering has yielded a set with about half as many backlight LEDs.

New LCD cells to suit the updated backlight

LCD cells cover the front of the LCD display, functioning as the element that turns light from the LED backlight into the images we see. Colors are formed as light from the backlight passes through color filters of each pixel in the LCD cell. To some extent, improving energy efficiency of LCD TVs depends on improving the transmittance transmittance of LCD cells. The X85B series introduces new LCD cells tailored to specific characteristics of the new backlight, with approximately 1.4 times higher transmittance than one used in the previous models.(*2) Increased backlighting efficiency translates into a high energy-efficient TV.

Buildings on past energy-saving features

Besides incorporating a new LED backlight and LCD cells, the X85B series builds on energyefficient features developed by Sony to date. A good example is Eco Drive, which adjusts LED

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backlight brightness frame by frame to avoid wasting energy. Similarly, backlighting is reduced for dark scenes  – such as evening scenes  – which also produces deeper blacks.

Another advantage: Made with Sony recycled plastic SORPLAS™

The X85B series (55/65inch) saves new resources as well as energy. Some internal parts are made with SORPLAS™ – recycled plastic developed by Sony.

Plastic SORPLAS

Corporate Governance

Sony has long been committed to strong corporate governance, as one of its most important management initiatives. As a part of this effort, in 2003, Sony adopted the "Company with Committees" corporate governance system under the Companies Act of Japan. In addition to complying with the requirements of applicable corporate governance laws and regulations, Sony has introduced its own requirements to help improve and maintain the soundness and transparency of its governance by strengthening the separation of the Directors' function from that of management and advancing the proper functioning of the statutory committees. Under Sony's system, the Board of Directors defines the respective areas for which each of the Corporate Executive Officers is responsible and delegates to them decision-making authority to manage the business, thereby promoting the prompt and efficient management of the Sony Group.

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Compliance

Ethical business conduct and compliance with applicable laws and regulations are fundamental aspects of Sony's corporate culture. To this end, Sony has established a Global Compliance Network comprised of the Compliance Division at the corporate headquarters, a global compliance leadership team and regional compliance officers around the world. Additionally, it has adopted and implemented the Sony Group Code of Conduct, and set up Compliance Hotline Ho tline systems through its Global Compliance Network. Sony has taken these actions in order to reinforce the Company's worldwide commitment to integrity and help assure resources are available for employees to raise concerns or seek guidance about legal and ethical matters.

Human Resources

Sony endeavors to create a rewarding corporate climate that supports the efforts of a diverse range of employees. Since its establishment in 1946*, Sony has sought to remain at the forefront of technological development, building continuously on its achievements to create new lifestyles for people everywhere. Sony has also fostered groundbreaking new businesses, adopting an innovative approach to this challenge that exceeds national and regional boundaries. In these efforts, effort s, Sony recognizes its employees to be one of the most crucial aspects of its corporate foundation.

To fulfill its commitment to providing uniquely Sony products, services and user experiences that inspire dreams, excite curiosity and enrich lives, Sony acknowledges the importance of securing and fostering talented employees with a wide range of values and personalities, irrespective of nationality, culture, race, gender, age, or the presence or absence of physical limitations. Guided by the concepts of diversity and inclusion, Sony recruits individuals from various backgrounds. Sony also strives to create positive working environments and opportunities that enable individuals with diverse backgrounds to fulfill their potential by learning from one another, believing these to be essential to a rewarding corporate climate.

 Group Code of Conduct Sony  Group

In May 2003, Sony adopted the Sony Group Code of Conduct, which sets the basic internal standards to be observed by all directors, officers and employees of the Sony Group, in order to emphasize and further strengthen corporate governance, business ethics and compliance systems throughout the Sony Group. In addition to legal and compliance standards, the Code of Conduct sets out the Sony Group's basic policies concerning ethical business practices and

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activities on such topics as respect for human rights, safety of products and services, environmental conservation and information disclosure. The Code of Conduct has been adopted and implemented by each Sony Group company globally and is the subject of frequent "tone from the top" messaging and other training. To date, the document has been translated into 26 languages. The Sony Group Code of Conduct reflects principles set out in the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises, the United Nations Global Compact and the United Nations Universal Declaration of Human Rights. Sony also participated in the formulation of and observes the standards outlined in the Charter of Corporate Behavior of the Keidanren (Japan Business Federation), an alliance of Japan's leading corporations.

Responsible Sourcing

In recent years, stakeholders have grown increasingly aware of the importance of companies fulfilling their overall responsibilities to society as corporate citizens, including managing their supply chains in a responsible manner. In response to stakeholder concerns, Sony is working with its suppliers to address issues related to human rights, labor conditions, health and safety, and environmental protection at the production sites of outsourcing partners and parts suppliers, as well as in its procurement of minerals and other raw materials.

Quality and Services

Sony has various businesses globally to provide products and services that meet customer requirements in terms of satisfaction, reliability and trust.

At Sony, we strongly believe in the importance of informing stakeholders, including customers, about our environmental philosophy and initiatives. Furthermore, employees of each Sony Group 24

company receive environmental training and have access to other self-development programs to help raise environmental awareness.

Sony  Contributing to the International Community through Business Activities. Working to Address Social Development through the Utilization of Technology

From August 2013 through February 2014, Sony undertook a study* in an unelectrified area of Bangladesh (Gaibandha district, Saghata sub-district ) aimed at encouraging the effective use of renewable energy generation and improving living conditions and hygiene for local people using a long-life storage battery system** and photovoltaic (PV) panels. Based on the results of this study, Sony has begun considering the feasibility of building a new business model. Project name:

Electrification of an unelectrified area using solar power generation and a long-life storage battery system Objectives:

To effectively utilizes renewable energy generation and to promote the use us e of electricity To contribute to the reduction of greenhouse gas emissions

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To improve living conditions and hygiene through the electrification of an unelectrified area

Project Overview

Research Overview:

I. II. III. IV.

Store renewable energy generated by a solar PV system in Sony's long-life storage battery system. Transfer the stored energy to portable batteries and delivere to 100 households in an unelectrified area to supply power. This energy enables to replace kerosene lamps with LED light bulbs which consume lower energy. (A portable battery powers a 2-watt LED light bulb for approximately 15 hours.) Residents can work and study indoors even after sunset. Indoor air contamination is also reduced, thereby enhancing living environments.

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Benefits: 



 

Be able to charge the long-life storage battery system with solar power generation during daylight hours. The stored energy will be divided into portable batteries and are delivered to the village to supply power for f or use at night. Residents can work and study indoors even after sunset, which leads to an improvement in residents' quality of life. Inside the houses, air contamination by kerosene lamps is reduced. The power is also used to charge widely used mobile phones and enhances convenience.

Secondary benefits:

The project employed InfoLady consultants to deliver portable batteries to each household and undertake programs to promote the uptake of the system. The InfoLady program is managed by a local NGO, and can be described as "a consultation-based assistance program carried out for women and by women." By utilizing the InfoLady program, the project promoted increased employment of local women and contributed to their empowerment.

Based on knowledge gained in the study conducted by Sony Energy Devices Corporation, Sony Corporation and cooperating organizations as outlined above, Sony has begun from May 2014 considering the feasibility of developing a new business in partnership with local companies.

This is an action program managed by local NGO D.Net. The program seeks to organize entrepreneurially minded women in rural areas. At present the program covers 12 areas from 13 offices, with approximately 80 women acting as InfoLady consultants. The participants use netbooks, digital still cameras and mobile phones while making rounds in their assigned coverage areas on bicycles. They provide information and knowledge necessary for life in  Action program rural areas (related to health and hygiene, legal matters affecting women and agricultural matters). This program is is attracting significant worldwide attention attention as a successful case of ICT use in a developing country for poverty reduction and empowerment of women. 27

Sony is involved in activities that aim to solve social issues in urban Bangladesh  by using Sony's FeliCa™ contactless IC card technology.

In the capital city of Dacca, majority of people use buses for their transportation, which causes traffic jams and were their social problem. Moreover, people have to purchase paper tickets by the roadside for every boarding, which made it inconvenient and easy to do fare f are dodging.

Commuter in Dacca, Bangladesh, pays his bus are using a SPASS IC card

To help solve such problems, an IC card-based system using FeliCa technology was introduced in 2011 to replace paper tickets. In addition to improving convenience for passengers, it realized speedy boarding and alighting time, utilizing incoming and outgoing records to optimize bus operation management, and the system has also contributed to the alleviation of traffic jams and made fare collection more transparent.

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Key Findings Sony's materiality assessment reaffirmed the importance of the seven key areas of its CSR agenda in which continues to be in the areas that Sony shall promote its initiatives. The assessment also showed a cluster of topics related to Sony's electronics business, including managing its operation's social and environmental impact and improving transparency across the supply chain, as being of particular concern to stakeholders. In addition, the assessment identified emerging topics such as those concerning the management of content and information with the growth of Sony's network and entertainment businesses. The assessment also identified topics that Sony has limited influence or have already been addressed through ongoing programs. At the same time, the assessment showed that stakeholder expectations expectations are high toward innovation in developing sustainable products and services and creating value to society.

Going forward, Sony pledges to continue working to better understand the expectations of its stakeholders and to address the challenges and opportunities identified through the materiality assessment.

Conclusion Sony recognizes that ensuring its customers' satisfaction, reliability and trust is one of its most important management tasks and strives to prevent quality-related problems through the systems and efforts described above. Sony responds swiftly in the event of a quality-related issue, with local operations, the business unit in charge and Sony's headquarters in Japan working together to investigate facts and take appropriate action on a global scale. When such an issue arises, Sony also seeks to address the concerns of customers, following a process common to all Sony products: conducting various inspections, determining the content and timing of public announcements, and responding to market concerns. This process starts with the gathering of information from Customer Service Centers worldwide and collaboration with concerned local parties to ensure an accurate grasp of the issue. Based on information collected, Sony then works to determine the correct response by identifying the cause of the issue, implementing countermeasures and promptly verifying the effectiveness thereof, and reviewing the issue from the customer's perspective. Sony also cooperates with individuals in charge of CS at sites in each country to ensure the same level of service is provided to customers the world over.

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