CSR Report 2010 PDF

CSR Report 2010
Contents
• President’s Message
03
• Feature 1: Pursuing the New Potential of Video Games
05
• Feature 2: Working with Our Production Partners
09
• Everyone Nintendo Touches
13
• Bringing Smiles to Our Consumers
15
• Working with Our Business Partners
23
• Maximizing Our Employees’ Strengths
27
• Bringing Smiles to Future Generations
33
• Bringing Smiles to the Community
39
• Reliable and Trustworthy Business Practices
43
• A Message Regarding This Report
47
• Nintendo Overview
48
Our Editorial Policy
As a global corporate citizen, we of the Nintendo Group (Nintendo Co., Ltd. - the parent company - and its consolidated subsidiaries)
recognize that it is our responsibility to consider the interests of society when conducting business activities and to remain aware of how
our actions impact consumers, business partners, employees, shareholders, communities and the environment. For Nintendo, our
business is games and entertainment, so we believe our ultimate responsibility is to put smiles on the faces of everyone we touch.
The 2010 Nintendo Corporate Social Responsibility Report describes how we are working to achieve this goal.
Reporting Scope
The scope of this report covers the activities and data of the Nintendo Group. Any information not within this scope is explicitly stated. For
the purposes of this report, “Nintendo” refers to the Nintendo Group, and Nintendo Co., Ltd. itself is referred to by its complete name. In
addition, the environmental data reported mainly applies to Nintendo Co., Ltd. and its primary overseas subsidiaries and branch offices.
Nintendo Co., Ltd. is ultimately in charge of product planning, development and production, and considers the opinions and legal advice of
its subsidiaries. Particularly with regard to the sections of the report that relate to product development policies (Product Safety), production
(CSR Procurement) and Corporate Governance, “Nintendo Co., Ltd.” may also refer to the Nintendo Group in light of this business model.
•Nintendo of America Inc.
•Nintendo of Europe GmbH (Germany)
•Nintendo Benelux B.V. (Netherlands)
•Nintendo of Korea Co., Ltd.
•Nintendo of Canada Ltd.
•Nintendo France S.A.R.L.
•Nintendo of Europe GmbH, UK Branch
•Nintendo Australia Pty. Ltd.
•Nintendo Ibérica, S.A. (Spain)
•Nintendo of Europe GmbH, Italy Branch
Reporting Period
Fiscal year 2009 (from April 2009 through March 2010) as well as some activities that occurred prior to and after this period.
The reporting period of Nintendo of Europe’s environmental data is from January 2009 through December 2009.
Date of Publication (English version)
September 2010
•“Wii” refers to Wii hardware.
•“Nintendo DS” includes all hardware of Nintendo DS, Nintendo DS Lite, Nintendo DSi and Nintendo DSi XL.
•For information supplementary to this report, please visit the Nintendo Corporate Information website at: http://www.nintendo.co.jp/en/csr/
• Voice Each section with this mark next to the title relates to the employee’s voice.
Translation Note
This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this
translation and the original, the original shall prevail.
President’s Message
Continuing to Delight People
Through Innovation
Innovation is More about Breaking Through
Imaginar y Walls Than about Technical
Revolutions
Nintendo is focused on its basic strategy of broadening
the scope of the gaming population in order to bring
smiles to even more people around the world. To achieve
this, we released Nintendo DS and Wii, and aim to
continue making products that entertain and enrich the
lives of those who play with our products. To confirm our
progress towards this goal, we periodically carr y out
surveys to determine the number of our consumers in
Japan, the United States and six countries in Europe. The
results through the end of March 2010 showed that more
than 230 million people own our products. When we first
established our goal, it was strongly believed in the game
industry that it was impossible to offer products which
could attrac t people regardless of their age, gender,
cultural background or gaming experience. However, the
results have demonstrated that our goal was achievable.
From this point on, we must not become complacent; we
must continue to challenge ourselves.
I b e l i e v e t h a t t r u e i n n o v a t i o n fi r s t b e g i n s w i t h
overcoming psychological barriers and doing things
thought to be impossible. It is natural to have
psychological barriers. People tend to believe their first
impressions and trust their own judgments. However, in
order to give rise to innovation, we must be willing to
question our preconceived ideas and view things from a
different perspective. If every employee of Nintendo is
open to questioning his or her own preconceptions, and
by breaking down his or her imaginary walls, turns what
has been thought to be impossible into possible, then we
will have more opportunities to succeed in our mission of
putting smiles on the faces of everyone we touch.
Satoru Iwata
President, Nintendo Co., Ltd.
03
Considering Our Consumers’ Views
In keeping with our efforts to break through imaginary
walls, in fiscal year 2009 Nintendo launched a project to
consider the views of our consumers more closely when
developing our products and services.
Though Nintendo’s workforce is relatively small, each
department tends to work on specialized areas, and as
time goes on, it becomes challenging to see what other
d e p a r t m e n t s a re w o r k i n g o n . Fo r e x a m p l e, t h o s e
engrossed in produc t development had few
opportunities to hear directly from customer relations
what our consumers were saying, whether praise or
complaints. As a result, we were sometimes unable to
reflec t the voices of our consumers suf ficiently in our
development process.
If employees had a clear understanding of how their
own departments were connected to other departments
as well as to our consumers, not only would it benefit the
company as a whole, it would also help make even more
consumers happy around the world. To determine how to
strengthen these connec tions, we launched a
company-wide project to bring members from different
departments together.
During the agenda-set ting process, it became
a p pa re nt t ha t t h e re w e re ma ny t hing s t h e p roje c t
members did not know about each other’s departments,
and it required more time and effort than expected to
bring everyone to the same starting point. As a result, we
realized it was ver y impor tant for ever yone to have a
better understanding of what others at the company are
res ponsible for and, at fir s t, we began an ef for t to
periodically get people from dif ferent depar tments
together to talk about their respec tive work. These
foc used disc us sions have been immensely helpf ul,
serving as the foundation on which employees now think
beyond what would be best for their own department’s
goals and also consider what would benefit all related
departments. Through this project, we will continue to
s te p up our ef for t s to im prove inter- d e par tment al
communication in order to keep making people happy.
Putting Smiles on the Faces of Everyone
Nintendo Touches
The Internet has been instrumental in expanding the
new p ote ntial of g ame s, b u t Ninte nd o mu s t t read
carefully when incorporating Internet-dependent features
into its games. This caution is based on our belief that
nothing is more important than protecting minors from
any unwit ting engagement in potentially dangerous
activities and dispelling concerns which our consumers
may have about the online safety of our games. Some
c o n s u m e r s w h o p la c e a n e m p ha s i s o n f re e d o m of
communication may feel that Nintendo is being overly
cautious, but we take various precautions in view of our
strong motivation to put smiles on the faces of everyone
Nintendo touches.
Similarly, we are continuing our efforts to protect the
environment for the smiles of future generations. To
safeguard our consumers and reduce the environmental
impac t of our produc t s, Nintendo limit s the use of
harmful chemicals and utilizes safe substitute materials
wherever practicable in the manufacturing process. At
the same time, in order to address the environmental
concerns that relate to climate change, we are not only
refining our production processes and taking other steps
in our business operations to reduce our consumption of
natural resources; recognizing the fact that more than
200 million consumers play with our products, we are also
working to design energy-ef ficient produc ts so as to
lessen their impact on the environment.
Relationships with our production partners are another
important theme at Nintendo. Without the cooperation
of our production partners, Nintendo cannot succeed in
its business. Since fiscal year 2007, we have continued to
c o nd uc t o n - si te in s p e c tio n s in w hic h we s e n d o u r
e m p l oye e s to p ro d u c t i o n p a r t n e r s’ s i te s to g e t a
first-hand look and a deeper understanding of local
working conditions and hold discussions with management
and workers regarding areas for improvement. I believe
sharing our philosophies with production partners leads
us to making our consumers happy, which in turn makes
us happy.
Our Commitment to Make
More People Happy
The American Heart Association, a global leader in the
ef for t to prevent life s t yle disea se s, ha s confir med
research which shows that people who make it a daily
habit to play Wii Sports Resort or Wii Fit Plus reduce their
risk of cer tain lifestyle diseases. The Association has
endorsed the use of Wii to promote good health. This is
no small achievement; Wii is the first game console to
obtain an endorsement from the Association. Consumer
feedback has also been overwhelmingly positive, with
numerous users expressing gratitude for the benefits of
using Wii and Nintendo DS.
That being said, some data suggest that video games
still are not receiving the same level of social acceptance
as movies and other forms of entertainment. The data on
this page show the situation in Japan only, but the survey
carried out in the United States shows similar results.
While taking issues like this seriously, we would like to
continue to break down imaginar y walls so that even
more people can live happier and more fulfilling lives
through playing with Nintendo products.
Social Acceptance of Entertainment
TV
Movies
44
37
Sports
38
30
18
Like it very much
Don’t like it much
(%)
46
33
Music
Video Games
43
46
28
Like it
Neutral
Don’t like it at all
Don’t know
Source : Nintendo July/09 Interview Survey (Tokyo, Osaka) N=3,045
04
Feature 1
Pursuing the New Potential of Video Games
Encouraging as Many People as
Possible to Move Their Bodies and
Enjoy Exercise at Home
In November 2009, Dr. Motohiko Miyachi of the National Institute of Health
and Nutrition (Japan) made a presentation to the American Heart Association*
stating that 27 out of the 69 training activities in Wii Fit Plus
have an exercise intensity of 3 METs or over.
We would like to introduce you to Mr. Sugiyama, the development producer
at Nintendo, who is responsible for the creation of health-promoting software;
we also present an interview with Dr. Miyachi, a specialist
in sports science and an adviser for Wii Fit Plus.
* The American Heart Association is a global leader in the effort to prevent and cure various lifestyle diseases.
For Snowboard Slalom, stand in a
sideways stance and lean your body to
each side to balance.
A Developer’s Comments
Conveying the Joy of Exercising
to as Many People as Possible
I magining a Fa mil y Ge t ting
Together to Talk about Health
Wii Fit Plus
Wii Balance Board
W i i Fi t a n d W i i Fi t Pl u s s u p p o r t
fitness habits with ease. Users can
determine their weight and do
various exercises by using the Wii
Balance Board. Wii Fit Plus, which is
now on sale, is an advanced version
of Wii Fit. It provides a total of 69
exercises and ac tivities, including
aerobics, strength training, yoga and
balance games.
05
The development of Wii Fit
b e g a n w i t h t h e i d ea of ma k i n g
health a common topic for families,
by e n c o u r ag i ng t h e m to w e ig h
themselves every day. However, we
e x p e r i e n c e d a d i f fi c u l t y i n
differentiating Wii Fit from existing
products, such as bathroom scales
or body fat scales, while achieving
the goal of making it a “game.” It
was the decision to implement a
body balance checking func tion
a n d e nla rg e t h e size of t h e W ii
Balance Board to shoulder width
that allowed the development to
move for ward, which instantly
broadened the scope of the content
for Wii Fit.
Using Ingenuity to Encourage
Users to Play Every Day
The most effective way of taking
care of your health is to regularly
check your weight, record it and be
aware of its fluctuations. Training
that enables users to easily measure
body weight and balance, and a
function that enables users to check
their weight fluctuations graphically,
were therefore incorporated into
Wii Fit in order to motivate users to
s te p o n t h e W i i Ba l a n c e B o a rd
every day.
Also, realizing that training can
of ten become monotonou s, we
incorporated into the game a
character called “Wiibo”, in addition
to both a male and a female trainer,
and programmed them to encourage
the users, simultaneously offer useful
bits of advice on their movements
and engage users in small talk, all of
which are the results of our attempt
to make the game more personal.
In addition, we scored each training
activity and added some exercises
that beginner s like my self, w ho
rarely play sports, can do easily. We
also developed enter taining
activities, such as balance games.
These were just some of the ideas we
incorporated to motivate users to
continue playing while having fun.
As Dr. Miyachi also mentions, the
most important part of exercising is
continuity. I would be very glad if
the nature of a game, which makes
users feel like playing because it is
fun, led a user to continue training.
over the world. I intend to continue
working hard to develop software
that incorporates users’ comments
in order to make as many people
smile as possible.
Incorporating Users’ Comments
to Make Even More People Smile
User feedback was employed in
creating Wii Fit Plus, an advanced
version of Wii Fit, which enables
users to weigh their babies or pets
a n d to c rea te t h e i r o w n fi t n e s s
routines. Also, thanks to Dr. Miyachi’s
advice, the ef fec tiveness of each
ac ti v i t y i s s how n in t he fo r m of
calories burned (calculated based
on scientific basis).
Currently, over 35.26 million Wii
Fit and Wii Fit Plus units (as of the
end of March 2010) have been sold
and are being enjoyed by people all
Tadashi Sugiyama
Manager, Software
Development Group No.5,
EAD Software Development
Department, Entertainment
Analysis & Development Division,
Nintendo Co., Ltd.
Dr. Miyachi’s Comments
“I hope that many people will take
the opportunity to exercise in their daily lives.”
“I believe if we can make use of the fun nature of games for something such as exercise,
in which continuity is essential, it could have a profound effect.”
These words, from Dr. Miyachi, were consistent with Nintendo’s mission
to put smiles on the faces of as many people as possible. So in 2009, we began
joint research to rate the physical intensity of the training activities. We would like to
explain the background of this research and to present our future plans.
Q How much has the physical
activity level of the modern
Japanese population
decreased?
A I am currently working at the
National Institute of Health
and Nu t r i tio n. M y mi s sio n i s to
create exercise guidelines in order
to improve national health, but I
have a strong sense that we are in
the midst of a crisis regarding the
decrease in the physical ac tivit y
level of the Japanese population.
The risk of lifestyle diseases, such
as obesity, increases with reduced
physical activity, but 60 - 70% of the
Japanese population currently do
not have an exercise routine. In
addition, for both males and females,
the average number of steps taken
daily has decreased by about 1,000
steps compared to the number of
10 years ago. Recently, the number
of people who do regular exercise
in gyms has increased slightly, but
the total amount of physical activity
h a s s t e a d i l y d e c r e a s e d d u e to
Dr. Motohiko Miyachi
Project Leader of the Health Promotion
Program/Fitness Guidelines,
National Institute of Health and
Nutrition (Japan)
Profile
Graduated from the National Institute
o f F i t n e s s a n d S p o r t s i n K a n oy a i n
1988. He attained his current post after
working at Kawasaki Universit y of
Medical Welfare as an assistant professor
and at University of Colorado (U.S.) as a
v i s i t i n g f e l l o w. D o c t o r o f P h y s i c a l
Science. Adviser for Wii Fit Plus.
highly developed IT technology
which enables people to shop in
daily life without going outside and
the introduc tion of the t wo -day
weekend which has led to a more
sedentary lifestyle.
Q Why did you decide to
conduct a study on Wii Fit?
A We had been insistent in trying
to f a milia r i ze a n d e d u c a te
people about the impor tance of
exercise or physical activity in daily
life, but our efforts did not seem to
have much ef fec t, so we were
wondering how we could overcome
the problem. It was at that moment
that we first learned about Wii Fit.
Subsequently, we found out there
were as many users of this software
as there were fitness club members
in all of Japan (about 3.5 million
people), which indicated that this
software could motivate a multitude
of people to star t exercising.
Therefore, we felt that a study of
Wii Fit would have social significance
What are METs?
for modern society.
From our research, it bec ame
clear that 27 out of the 69 training
activities in Wii Fit Plus recorded 3
ME Ts or over, which meant that
from a medical perspective, these
activities proved useful in obtaining
a h e a l t h y l i f e s t y l e . M o r e o v e r,
people continued to exercise not
necessarily because it was good for
their health, but rather because it
was “fun”, and if it was easy to do,
they would ac tually continue to
exercise, which I thought was the
m o s t i m p o r t a n t fi n d i n g o f t h i s
research.
Q What features does Wii Fit
have as exercise support
software?
A The most attractive aspect of
Wii Fit is the convenience.
User s c an s tar t training in their
homes, whenever they want to, in
any clothing they choose to wear. I
think that this accessibility lowers
the mental barriers that could
The Average Number of Daily Steps
Taken by the Japanese Population (over age 20)
A metabolic chamber is a
ground breaking apparatus that
enables long-term measurements to
be taken of the amount of energy
people use in an environment close
to everyday life. The MET values of
the exercises in Wii Fit Plus were
c alc ulated u sing t he met a bolic
chamber, and the calories burned in
each training activity were calculated
based on these MET values.
8,000
7,000
7,503
7,474
6,762
6,378
6,000
(Steps)
Male
2003
2004
7,561
6,526
7,413
6,590
7,321
6,267
Female
2005
2006
2007
7,011
5,945
2008
(FY)
Source: Based on the Ministry of Health, Labor and Welfare’s
“Overview of National Health and Nutrition Research Results, 2008”
07
Calculating the METs
Wiibo talks to the users and gives them advice
MET (metabolic equivalent) is a numeric unit
expressing the level of physical exertion in exercising.
1 MET, equivalent to the body’s metabolism at rest, is
used as a standard for calculating the level of other
ac tivities. For example, the value for walking is 4
M E Ts , w h i c h e q u a t e s t o f o u r t i m e s t h e e n e r g y
c o n s u me d w he n re s ting . In t he Ja pane s e heal t h
exercise guidelines, it is recommended that people
do exercise with an intensity of 3 METs or more.
other wise p reve n t p e o p l e f ro m
starting or continuing to exercise.
F u r t h e r m o r e, W i i b o a n d t h e
trainers in the game advise users on
how to improve their movements,
and also engage them in small talk
like, “Long time no see!” These
comments are not that different to
what I ac tually say when I am
coaching people who are training.
In addition, because users receive
advice which is based on their
ind i vid ual weig ht and s t re ng t h
fluc tuation data, it is ef fec tive in
urging them to be more aware of
their health. Also, new features,
such as a function which shows the
calories burned in each training
activity and another function which
recommends the appropriate
training for users based on their
aims, were added to Wii Fit Plus. I
think this made it even easier for
users to keep themselves motivated.
A From now on, based on the
results of this research, I would
like to further verify the effects of
Wii Fit by encouraging more people
to use the game. I think that many
other researchers share my views,
and the result s of those s tudies
could present Nintendo software
with new possibilities. However, I
think the most impor tant reason
why this sof tware has been
welcomed by such a large number
of people is it s enter tainment
aspec t. The idea that exercise is
good for health is recognized
worldwide, but there are few ways
by which everybody can continue to
train while having fun. In that
regard, I think it is possible for the
easy-and-entertaining Wii Fit Plus to
encourage people to develop good
training habits. I sincerely hope that
Nintendo continues to pursue what
only an entertainment company can
achieve.
Q What expectations do you
have for the future prospects
of Wii Fit Plus?
Exercises with
3 METs or more
in Wii Fit Plus
27
Grounded V Pose
Rhythm Kung Fu
/ 69 activities
Obstacle Course
08
Feature 2
Working with Our Production Partners
Continuous Communication
with Our Production Partners
Three years have passed since Nintendo began conducting
on-site inspections of its production partners.
We are making some progress and starting to see the results
of our informative discussions and suggestions for improvement.
The following is an update of the inspection process.
Facilit ating Communic ation
through On-Site Inspections
Nintendo employs a fabless
prod uc tion mod el: we d o not
maintain our own produc tion
facilities so it is essential that we
work closely with our produc tion
p a r t n e r s (o u r c o m p o n e n t p a r t
suppliers and assembly subcontractors). This practice promotes
production efficiency and ensures
i n c r e a s e d p ro d u c t q u a l i t y a n d
safety, in turn making Nintendo’s
consumers happy. To achieve this,
we must go beyond simply advising
produc tion par tners how to
proceed. It is vitally important that
the production partners share the
same attitude and approach to CSR
as Nintendo, especially with those
who work at the actual production
sites.
On-site inspec tions are not
simply to confirm the work being
done; rather, the overarching goal
09
is to create dialogue with site
workers. Arranging the meetings
and touring the sites are valuable
ways to mutually discuss issues and
unearth solutions that may not be
a p pa re nt f ro m w r i t te n re p o r t s .
Furthermore, a more realistic grasp
of most situations can be obtained
by lis tening to the worker s who
know both the site and the process.
We initially struggled to find an
appropriate way of conducting the
on-site inspections, but now we are
realizing the wide variety of benefits
from this highly collaborative
process.
Procedure for On-Site Inspections
On-Site Inspection Example
• Interview administrators and supervisors
Nintendo CSR Procurement Guidelines
On-site inspection example
• Inspect records for overtime work,
holidays and employment agreements
1. Promote compliance and respec t for
human rights
• Check the operational status of both internal and working guidelines
• Check labor unions and employee representation
• Check the child labor protection guidelines and operational status
• Check the wage structure
• Check whether the probation period rules for new workers are being followed
2. Ensure occupational health and safety
• Check whether the required certified personnel are present
• Check the records of facility patrols by certified personnel
• Check the status of employee medical checkups
• Confirm the facility conditions
3. Practice of corporate ethics and fair trade
• Confirm implementation of audits for internal controls
4. Environmental conservation
• Confirm implementation of ISO 14001
5. Product safety assurances and quality guarantees
• Confirm implementation of ISO 9001
6. Thoroughness of information management
• Confirm implementation of document management policies and controls
• Confirm implementation of rules concerning use of computers
7. Policies and controls for emergenc y
response planning
• Confirm the presence of adequate fire extinguishers, and whether fire drills are
being carried out
• Evaluate the country risk
8. Contributions to society
• Review the status of the company’s community support activities
9. Adherence to delivery dates and
stable supplies
• Check the status of the facility’s authorized licenses
• Review the status of parts and materials management, inventory and manufactured goods
• Confirm the process and inspect the
site by touring the facility
• Conduc t discus sions and debrief s
regarding observations with facility
management and production operations
• Check worker morale and satisfaction
Past Record of On-Site Inspections
(As of March 2010: 19 companies in China; 1 company in Taiwan)
Number of on-site inspections
(number of new companies)
FY2007
8 companies
(8 companies)
FY2008
7 companies
(5 companies)
FY2009
14 companies
(7 companies)
Total
29 companies
10
People Involved with Nintendo
What We have Learned
from Our Discussions
Even before commencing the
CSR on-site inspections, Nintendo
had been touring the facilities of its
production partners and discussing
issues relating to qualit y and
deliver y time of produc t s and
component parts. However, after we
began the CSR on-site inspections
we realized that our partners did not
fully understand the background
and objec tives of our qualit y
requirements, and we found that
we had not provid ed them with
sufficient details regarding our own
views and expec tations. We feel
that the current mandatory on-site
inspec tion process enables us to
correct this and promotes not only
CSR but also product quality and
safety.
The planning and follow-up
disc us sions that are par t of the
on-site inspec tion proces s give
Nintendo an opportunity to provide
greater detail regarding our views
and expectations, thereby giving
produc tion par tners a bet ter
u n d e r s t a n d i n g o f N i n t e n d o ’s
business and our CSR policy. This
dialogue also gives Nintendo an
oppor tunit y to gain a greater
understanding of our produc tion
partners.
Simply completing a checklist
does not mean that the inspection
p r o c e s s i s fi n i s h e d . S i n c e t h e
discussions provide opportunities
for Nintendo and produc tion
partners to deepen mutual
understanding, the on-site
inspections have a lasting effect in
inc reasing the motivation of all
involved. We hope the produc ts
b o r n of t hi s p ro c e s s h e l p u s to
achieve our mission.
Protecting Minors
As in many countries, including Japan, Chinese law
also bans the use of child labor, which is defined as
labor by children aged 15 and under. Once children
reach age 16, they can be legally employed for work.
However, workers that are 16 or 17 years of age are
considered minor s, and so for the s ake of minor
protection certain provisions have been set, including
periodic health exams and restrictions on work tasks
that could impede growth and development.
In general, there are many minor s who work in
production in the factories of China. The production
par tners with which Nintendo conduc ts on-site
inspec tions adhere to all laws and do not employ
children, but it is not unusual for them to employ
minors. Nintendo has found that these production
partners in some cases lack sufficient awareness of and
s y s te m s fo r s a fe g u a rd i n g mi n o r s . N i nte n d o ha s
therefore made ef for ts to improve the work
environment for minors, through discussions
with produc tion par tners and by encouraging
improvements.
In the three years that Nintendo has been conducting
on-site inspec tions, we have noticed a heightened
awareness among factory management of the need to
Minors Wear an Identifying Patch on the Job
protec t minor s. In par tic ular, we have o bs er ved
significant progress in introducing measures to clearly
dif ferentiate minor s from other worker s. In such
factories, minors wear an identifying patch on their
uniforms that clearly indicates their status as minors so
that supervisors are fully aware of this when assigning
them tasks. Jobs that cannot be performed by minors
are clearly labeled by posters that read: This work
cannot be performed by a minor. In addition, adults and
minors are clearly separated on worksheets used in
tracking and managing work hours.
Currently, the labor pool in China is very fluid, and
one of the major issues with maintaining product quality
is the lack of experienced employees. It is important to
create a good work environment and retain a stable
workforce in order to produce high-quality products.
Owing to the facts that managers still lack sufficient
awareness of the importance of protecting minors and
many young people easily change jobs in the hope of
earning more money, it is difficult to resolve this issue.
However, Nintendo continues to implement on-site
study sessions and make proposals to convey to its
production partners the advantages of an improved
work environment for all workers, including minors.
Poster Indicating that an Operation should not be Performed by Minors
Production Partners’ Comments
Improving Work Conditions
Based on the Feedback from Nintendo
Establishing Targets for Improvement
and Promoting CSR Activities
Through our efforts towards embracing CSR, our
manag ement ha s gained d ee p awarene s s of it s
importance. These efforts have increased the amount
of time factory floor managers spend to educate and
mentor their employees, and promote communication
in the workplace. Based on the suggestions provided
b y N i n te n d o, w e h av e i m p rov e d o u r s y s t e m o f
designated factory patrols to ensure implementation
of occupational health and safety measures. This has
led not only to a better working environment, but also
to a bet ter standard of living for the employees.
Looking ahead, we plan to enrich the CSR education
provided to our workers in order to improve
understanding of CSR within the entire company.
When we first began our CSR efforts, most people in the
company did not know much about CSR and believed that it
was applicable only to specific employees. However, we
created a CSR committee to educate our employees about
CSR and have since succeeded in changing this perception.
In particular, the employees who are involved in Nintendo’s
on-site inspections have renewed their commitment to the
CSR process. We will continue to work to make improvements
to processes highlighted during the inspections and will
enhance communications between the divisions in Japan,
Chinese factories and sub-contractor factories, in addition to
improving the internal auditing process of our managers.
These are our main targets for improvement, and we will
establish concrete plans to progress further in our efforts.
Osamu Nishikawa
Kiyoshi Koshikawa
Factory Manager,
China Hosiden Factory, Hong Kong Hosiden Ltd.
Director General Manager,
ZHUHAI MITSUMI ELECTRIC CO., LTD.
Improving the Production Environment
through Direct Discussions with Production Partners
To create high-quality products that make consumers happy, I feel it is essential
that the people who develop and manufacture the products are happy as well. In
other words, if those involved in production are unhappy, it is difficult to produce
high-quality products.
Although we may have initially struggled with how to start the process, now the
inspections involve more than just answers to questions on a checklist. We place
greater emphasis on getting a sense of the atmosphere and morale in the facility, and
on directly understanding the attitudes of the people working there. Our inspections
are still somewhat limited in scope, but real progress has been made in terms of the
production partners achieving a better understanding of Nintendo’s CSR activities,
and of Nintendo’s grasp of the situation in their facilities.
Our policy of on-site inspections, with its emphasis on direct examination of the
worksite, is more in line with the Nintendo way of doing things as compared to other
survey methods, such as those involving independent third parties. I believe that the
most effective way to improve the production process in China’s complicated, rapidly
changing environment is to communicate directly with the managers and workers. I also
hope that this activity will lead to changes in the way of thinking at the production level.
Hirokazu Shinshi
11
General Manager, Procurement Information Office,
Uji Plant, Nintendo Co., Ltd.
12
Everyone Nintendo Touches
We endeavor to put smiles on the faces of everyone we touch
– directly or indirectly, now and in the future.
Business Partners
[PP. 23 - 26]
Nintendo continuously s trives to build bet ter
relationships with it s par tner s in the areas of
planning and development, procurement and
production, and sales and marketing.
Communication Channel
• New Product Information Sessions
• CSR Procurement
Employees
[PP. 27 - 32]
Consumers
[PP. 15 - 22]
Nintendo is committed to creating and
maintaining an environment where all
employees can exercise and expand
their s trengths while realizing their
maximum potential.
Nintendo’s top priority is to ensure that all of our consumers can fully
enjoy our products. In order to achieve this fundamental objective,
we are committed to creating the highest-quality produc ts by
listening carefully to consumers’ opinions and responding to their
needs so that they are happy with what we deliver.
Communication Channel
• President’s Address
• Health Consultation Room
• Periodic Consultations
• Health and Safety Committee
• Sharing Information via the Intranet
Communication Channel
• Customer Service Window • Nintendo Repair & Maintenance Center • Retailers
• Provide Information via Nintendo’s Website • Webpage for Reporting Counterfeit Products
Shareholders and Investors
[PP. 43 - 46]
Nintendo strives to build positive, satisfying and trusting relationships with
our investors and shareholders, through returns on profit and the timely and
appropriate disclosure of important information. We devote great effort to
increasing our corporate value so as to create long-term partnerships.
Development Partners
Communication Channel
• General Meeting of Shareholders • Financial Results Briefing
• Corporate Management Policy Briefing • Disclosure of Information Available via Nintendo’s Website
• Disclosure of Information Available via the Annual Report
Nintendo’s products include the innovative ideas and
advanced technologies of many of our development
par tners. Together with these par tners, we will
continue striving to create ever-better products.
Future Generations
Production Partners (Suppliers and Production Factories)
Nintendo employs the fabless production model, a
system that outsources component part supply and
product manufacture. We will continue working with our
production partners to improve our production processes.
Sales Partners
In order to reach as many consumers in the world
as possible so that they can enjoy our products,
we are committed to building better cooperative
relationships with our sales partners, including
wholesalers and retailers.
Publishers
Together with the software makers that develop
and sell their own branded sof t ware for
Nintendo’s game systems, Nintendo seeks to
promote the growth of the gaming industry.
13
[PP. 33 - 38]
Nintendo’s goal is to put smiles on the faces of today’s children and
those of future generations. We place great importance on handing
down a better environment to them, and we endeavor to maximize
environmental protec tion in our manufac turing processes and
business activities around the world.
Communication Channel
• Green Procurement
• CSR Report
Society
[PP. 39 - 42]
As a corporate citizen, Nintendo deems it important to support
society. We give serious consideration to the kinds of contributions
that only we can make as a responsible and caring corporate
citizen.
Communication Channel
• Community Contribution Programs in Various Countries
14
Achieving Quality and Safety
At Nintendo, we emphasize safety and reliability in
manufacturing products of the highest quality so that
consumers of all ages can enjoy them with peace of mind.
Product Safety Principle
We believe safety and
reliability are key factors
for high-quality products.
Quality Principle
We provide high-quality
products that meet
consumers’ expectations.
Framework for Product Safety Assurance
128.89
70.93
Nintendo Co., Ltd. established the Product Safety
Committee, under direct supervision of the Executive
Manag ement Commit tee, to ensure employees’
understanding of the Product Safety Principle and the
Quality Principle. Through effec tive management,
maintenance and improvement of Nintendo’s Product
Safety Assurance System, the Product Safety Committee
ensures the safe manufac ture and provision of our
products at every stage: from planning, development
and production all the way to after-sales service.
To ensure that our software is safe to use, we make
continual improvements to our company-wide content
checking system (see PP. 19 - 20), which is applied from
the earliest stages of product development.
million
units
1 FTA (Fault Tree Analysis)
A system that analyzes the root causes of safety hazards, such as fire
and injury, to develop suitable approaches to their prevention.
*
FMEA (Failure Mode and Effect Analysis)
*A 2method
of improving product safety and reliability by analyzing the
possible ways in which components may fail and how each failure
mode would affect the product.
Design Safety Review Committee - Review Items
1
3
The Design Safet y Review Commit tee operates
t h ro u g h s e v e r a l a r e a - s p e c i fi c s u b c o m m i t t e e s ,
i n c l u d i n g e n g i n e e r i n g , m a n u f a c t u r i n g , q ua l i t y
assurance, legal affairs, marketing, procurement and
repair/services, to screen product designs for safety,
with particular focus on the design and development
stage. This screening process is the most important
component of the Product Safety Assurance System.
Nintendo makes products of the highest quality in order to provide consumers
with a safe and enjoyable gaming experience through a continuous improvement process
that includes listening to consumer comments and concerns.
128.89 million units: Total number of Nintendo
DS sold around the world
70.93 million units: Total number of Wii sold
around the world
(As of the end of March 2010)
Nintendo has positioned Nintendo DS as “a machine
that enriches the owner’s daily life”, and Wii as “a
device that brings smiles to ever yone around it.”
Through our products, we strive to put smiles on the
faces of everyone we touch.
Safety specifications
Enhance produc t safet y and validate produc t
conformance to any relevant safety specifications.
Design Reviews at the Development Stage
million
units
Laws/Regulations
Confirm that products comply with all applicable legal
regulations on safety.
2
Bringing Smiles to Our Consumers
15
The Committee reviews the reports and prototypes
created by the product development departments to
examine the safety of each product from a wide range
of perspectives.
F i s c a l yea r 2 0 0 9 s a w n o s e r i o u s a c c i d e n t s o r
concerns arising from product design, so there was no
need to implement design changes to enhance safety.
However, in coming up with new and innovative ideas
for gaming, Nintendo has examined ways to avoid
potential product-related accidents, incorporating
FTA *1 and FMEA *2 . We can confirm that all Nintendo
products are thoroughly screened to meet the highest
safety standards.
Design safety standards
Confirm that internal design safety standards are being
observed.
4
Labeling standards
Validate the appropriate display of all required labels
and notices.
5
FTA, FMEA
C o n fi r m c o m p l e t i o n o f F TA a n d F M E A s a f e t y
evaluations.
Product Safety Assurance System
To ensure that our products are safe, from the planning stage all the way through to after-sales service, Nintendo
implements the Product Safety Assurance System which involves the following procedure:
Feedback
Planning
Procurement
Production
Inspection
After-Sales
Confirm that product
designs meet the design
safety standards.
(P. 16)
Verify that component
parts satisfy Nintendo’s
required criteria.
(P. 35)
Establish sound safety
validation methods
for production partners.
(P. 17)
Confirm that products
m e e t t h e s p e c i fi e d
safety standards.
(P. 17)
Ensure that end-user problems
and feedback are promptly
d e l i ve re d to t h e re l e v a n t
departments. (PP. 21 - 22)
Feedback
16
Safety Announcements
Complying with Toy Safety Standards
If concerns are repor ted abou t the sa fet y or
qualit y of Nintendo produc ts, we immedia tely
investigate such reports. We closely examine any
problems associated with products or services, and
act quickly to address them.
To ensure that our products are safe for everyone,
especially young children, Nintendo has made a
special effort to fully comply with the European Toy
Safety Direc tive*1 and the U.S. Consumer Produc t
Safety Improvement Act (CPSIA) of 2008 *2 , in addition
to the legal requirements of general product safety
applicable to consumer elec tronic produc t s.
Furthermore, Nintendo has established its own design
safety standards for product development, based on
the Safety Toy Standards of Japan*3 as well as toy
safety standards applicable in other countries.
1 Toy Safety Directive
A European Union (EU) directive regulating any product designed or
clearly intended for use in play by children under 14 years of age. Such
products must meet strict safety requirements related to physical,
mechanical, flammable, chemical and elec trical proper ties. This
directive has been revised and must be transposed into national law
by the member states by July 20, 2011.
*
Product Safety Improvement Act of 2008
*A 2U.S.Consumer
regulation which restric ts the use of phthalate compounds
within any product, as well as the use of lead on the surface.
3 Safety Toy Standards
The safety standards established by the Japan Toy Association, which
cover chemical substances, flammability and mechanical safety.
*
Thorough Inspec tions throughout the
Product Development and Production Stages
To ensure product safety, we verify compliance with
the aforementioned design safet y standards
throughout a product’s lifecycle, starting with material
selection for and the creation of prototypes. During
the prototype stage, for example, mechanical and
physical evaluations include drop tests, temperature
resistance tests, electromagnetic waves evaluations,
flammabilit y tests and tests for harmful chemical
substances that might be contained in and eluted
from the product (see P. 35). To perform these tests,
we use a full range of testing devices at our facilities
to check product compliance. We may, on occasion,
require ex ternal agencies to cer tif y produc t
compliance.
We also require our production partners to confirm
t ha t t h eir a s s e m b l y p ro c e s s e s c o m p l y w i t h o u r
specifications and use prescribed testing methods.
Fur t he r mo re, a s s e m ble d p ro d uc t s mu s t pa s s a
finished-goods test and are then inspec ted a final
time before being put on the market.
Product Safety Announcements on the
Nintendo Website and at Retailers
For consumer protection and to ensure reliability of our
products, we provide information about product safety
on the Nintendo website as well as at all retail locations.
Image from the Demonstration Video
A Drop Testing Device
Educating Employees about Product Safety
Educating Nintendo employees about produc t
safety is essential to ensure that all Nintendo products
meet the highest standards of safety and quality. In
order to instill in employees an appreciation of the
critical importance of ensuring that our products are
safe, Nintendo Co., Ltd. provides seminars to all new
employees. In fiscal year 20 09, Nintendo Co., Ltd.
provided product safety seminars for 109 new recruits
in our new-employee training program.
As part of our employee education program, since
May 1993, we have issued “Quality Assurance News”,
a monthly journal that presents additional information
and updates on produc t safet y issues to all
employees. In addition, we distribute guidelines to all
d e pa r t m e n t s to e f fe c t i ve l y s ha re a c c u m ula te d
exper tise in design and produc tion, and regularly
revise and improve these guidelines in order to make
use of this knowledge in the product development,
improvement and manufacturing processes.
A New-Employee Seminar on Product Safety
Nintendo Co., Ltd. Homepage
Voice
Announcements On-Screen and
in Instruction Manuals
So that our consumers can safely enjoy using our
prod uc t s, we provid e safet y prec au tions in our
instruction manuals and on our product packaging in
lang uag e t hat i s c lear and ea s y to und e r s t and.
A d d i t i o n a l l y, w h e n a g a m e i s l o a d i n g , o n b ot h
Nintendo DS and Wii, an on-screen notice appears to
urge the user to read the instruc tions, and on Wii,
another on-screen notice appears to remind the user
to confirm that the Wii Remote Jacket and Wii Remote
wrist strap are properly in place.
Also, for games which support Wii MotionPlus (a Wii
Re m ote a c c e s s o r y), w e p re p a re d a n o n - s c re e n
demonstration video, which shows the user how to
attach the Wii MotionPlus to the Wii Remote.
Creating Instruction Manuals
from the Consumer’s Perspective
Our consumer base is highly diverse,
including children and people who did
not usually play video games. To ensure
that all of our consumer s c an ea sily
understand our instruction manuals, we
m a ke eve r y a t t e m p t t o u s e s i m p l e,
ever yday language and terminology
whenever possible with the help of input
and sugges tions from the Cus tomer
Service Office, which interacts frequently
and directly with consumers. Through
these efforts, I sincerely hope that the
i n s t r u c t i o n m a n u a l s w e c rea t e h e l p
improve the overall game experience
and at the same time help in answering
our consumers’ questions.
Takanao Kondo
17
Software Planning & Development Department,
Nintendo Co., Ltd.
18
Considerations When Developing Software and Services
Nintendo believes it is very important to prevent
inappropriate content and ensure safet y when
providing software and services so that consumers
of all ages can enjoy Nintendo products with peace
of mind.
Ensuring Software Safety
Age-Appropriate Packages for Wii Games
Voice
Considering the arrival of exciting new immersive
game controls that enable users to use their entire
bodies instead of just their hands, as well as
leading-edge online games and content, we have
effective guidelines for software development and
share the guidelines with the relevant departments.
Our guidelines state key points to pay attention to
and continuous process improvement in order to
promote the safety and security of our consumers and
are revised as needed.
We also es tablished a company-wide content
checking system, which is applied from the earliest
stages of product development. This system specifies
that in addition to the main department, all related
departments check game content to ensure product
safety.
A white-based
package
A black-based
package
•Nintendo DS sof t ware packages do not use color to
categorize each age rating, but display the applicable
CERO rating symbols clearly on the package labels.
•The symbols do not correlate to game difficulty level.
Information on the Appropriate Target
Age Range
To help consumers make age-appropriate software
c hoice s, all Nintend o sof t w are sold in Ja pan is
e x a m i n e d f o r c o n t e n t a c c o r d i n g t o t h e C ER O
(Computer Entertainment Rating Organization) rating
system*1 ; the applicable rating is clearly marked on
the package label. We also provide rating s
information according to the rating systems used in
each country/area based on local laws and regulations
or through self-regulation.
In January 2010, Nintendo Co., Ltd. changed the color
of the packages from the customary white to black for
Wii games with a CERO rating of C, D or Z (ages 15 and
over) so that consumers could more easily see the age
rating. To make it easier for consumers to find these
age-appropriate titles, games in the black packages are
displayed separately in Japanese retail stores.
1 Rating Systems
These systems review game content and set an appropriate age rating
for each game.
*
WEB For more information on the rating systems used in each
region where our products are sold, please see Nintendo Co., Ltd.’s
CSR Q&A: Consumer Relations.
Making Things Easier for Everyone
Maintaining a Healthy Environment
for Children
To re s t r ic t acce s s and limi t t he unintentional
ex posure of ina p pro pr iate content to c hild ren,
Nintendo has integrated Parental Controls into Wii,
Nintendo DSi and Nintendo DSi XL*2 . This feature has
various f unc tions suc h as ena bling parent s and
guardians to restrict use based on local age rating
programs for games and limit their children’s access
to online content. For example, when the Parental
Controls setting for game ratings is activated, a child
will not be able to launch a Wii game that exceeds the
selected rating, essentially restricting access to games
that include inappropriate content, such as violence.
We will continue to provide information to parents
and guardians about this important feature.
Nintendo is also working hard in other areas to
shield Nintendo users from inadvertent exposure to
inappropriate content. Some sof t ware and
applications are designed to enable user-generated
content (UGC), such as user-generated images, text
and music that can be shared via a network, which
could sometimes include inappropriate content. To
prevent t he unintentional ex posure of u s er s to
inappropriate content on the Internet, we are working
together with our development partners to implement
safeguards that exclude inappropriate content when
using our systems.
2
*Parental
Controls are available for Nintendo DSi/Nintendo DSi XL
At Nintendo, we strongly suppor t our slogan,
“From 5 to 95”, and work hard to develop products
and ser vices that appeal to the widest range of
people, both males and females of all ages,
regardless of their level of gaming experience.
Making Things Intuitive
Quick and easy navigation of a new game world is
one of Nintendo’s highest priorities. With this in mind,
we tr y to limit the number of but tons, and make
gameplay as intuitive as possible, thereby minimizing
the need for users to study an instruction manual to
figure out how to play a game.
Usability for Everyone
We work hard to design games that can be enjoyed
by as many people as possible, regardless of age,
gender or level of gaming experience. To do this, the
game controller device, the size of the buttons, the
font size of the text and even the colors we use are
designed according to our internal rules for usability.
We also actively solicit consumer feedback and look
for ways to incorporate that feedback whenever
possible in our product development.
For certain Nintendo DS software that requires the
use of the Nintendo DS stylus, for instance, we have
designed the DS screen to be rotatable for persons
who are left-handed.
software and DSiWare.
Providing Safe and
Enjoyable Experiences
I am in charge of checking sof t ware
s a f e t y, a n d I b e l i e v e t h a t o u r m o s t
important mission is to ensure that every
consumer should be able to enjoy our
produc ts with peace of mind. If I feel
that certain elements of our games may
have an unfavorable effect on consumer
safety, I discuss my concerns with our
developers, and tr y to modif y the
content in such a way that will not
detract from the fun and excitement of
it. In order to maintain consumers’ trust,
we will continue to thoroughly review all
aspects of software safety.
Know More about
What Children are Playing
Nintendo thinks that providing ways to help parents
and guardians become more involved in their
children’s gaming experiences encourages better
communication. For this reason, we designed Wii to
automatically record which game titles are played and
for how long each day so that parents and guardians
can be better informed about their children’s gaming
activities.
A Nintendo DS Game for Lef t-handed User s: Last Window, The
Midnight Promise
Yoshito Yasuda
19
EAD Administration Department,
Nintendo Co., Ltd.
20
Responding Effectively to Consumers
We care a great deal about what consumers think
about our games and we have various customer
service channels in place, including telephone and
online contact points, to respond to the wide range
of inquiries and requests from our diverse consumer
demographic. Nintendo has established a system that
enables the relevant departments within the company
to share comments we receive from our consumers.
Our System for Sharing Consumer Feedback
N i n t e n d o r e c e i v e s f e e d b a c k f ro m n u m e ro u s
consumers via telephone, Internet and mail. To better
use this feedback when developing new products and
improving services, we have established a system for
sharing consumer feed back among the relevant
depar tment s within the company. We have also
established internal procedures for quickly
responding to reports of serious product incidents.
Customer Service Window
The Customer Service Window in Japan provides
information and advice on issues such as produc t
specifications and usage, as well as various campaigns.
In addition, we established the Nintendo Technical
Suppor t Center for Wii, Nintendo DSi and various
other networking services to respond to consumer
questions. We have also set up similar customer
service centers in locations around the world where
we provide support in local languages.
We hold regular training sessions to help staf f
acquire product knowledge and improve their skills in
consumer relations.
Repair and Maintenance
In Japan, the Nintendo Repair & Maintenance
Center handles product repairs. This center exists to
provide ex tensive repair ser vices so that our
consumers can enjoy our produc ts for as long as
pos si ble. From t he v iew point of env ironment al
conservation, we recognize that offering an extensive
product repair service is an important way in which we
can help extend the lifetime of our produc ts and
thereby slow down their waste production.
Our overseas subsidiaries have also implemented
their own repair systems to promptly respond to local
repair requests.
Overview of Fiscal Year 2009
and Future Issues
Nintendo Co., Ltd.
Providing In-Store Consumer Education
After the launch of Wii and Nintendo DS, we
witnessed a significant increase in interest for
our products from consumers who had never
played video games. In 20 08, Nintendo Co.,
Ltd. began training and deploying dedicated
sales staff to offer in-store demonstrations in
order to increase public awareness and
knowledge regarding Nintendo products. We
were able to gather direct consumer feedback
and at the same time educate potential
consumers about our products while they were
considering their purchases. Af ter wards, we
created a “For New Users” retail pamphlet for
consumer s who had never before played a
v id e o g a me. Ad d i tio nall y, we c rea te d t he
Nintendo Search Guide (a data search terminal),
which enables consumers to easily find the
produc ts they are searching for, learn more
about new prod uc t s and help them selec t
suitable software. The Nintendo Search Guide
was rolled out to retail stores in summer 2010.
System to Respond to Consumers’ Comments (Japan)
Consumers’
Comments
Service Sections
Inquiries
Telephone
Requests
Customer Service
Window
Nintendo Technical
Support Center
Suggestions
Complaints
*
Customer Satisfaction Meeting
Countermeasure
Discussion of
Vital Issues
Development
Manufacturing
E-mail
(Letters)
Sharing and
Handling of
Information
Marketing
Incorporate into
new products
CS Meeting*
(Chair:
President)
General Affairs
Nintendo Repair &
Maintenance Center
Corporate
Communications
Analysis/Deliberation
Improvement of
services
Improvement of
quality
A Nintendo
Search Guide
Our employees, business partners and
all related personnel work hard to ensure
that as many consumers as possible are
able to play and enjoy our games. As a
result of our efforts to provide quality
products, in fiscal year 2009, there were
again no serious issues that af fec ted
product reliability or consumer safety. At
t he s a me tim e, con s u mer fe e d ba c k
revealed that their expectations for our
software, hardware and various services
also continue to increase each year.
We believe that there is still much more
that we should do and can improve upon
to better meet consumer expectations.
For example, we are continuing to focus
our efforts on streamlining software and
s e r v i c e d eve l o p m e n t g u i d e l i n e s t o
ensure produc t s afet y. We are also
creating better frameworks for sharing
technical information and leveraging the
accumulated technical know-how to
improve our products. Increasing our
cu s tomer ser vice training to bet ter
understand our consumers’ concerns is
another area of focus for the future. To
achieve these goals, we will continue to
wo r k c l o s e l y w i t h s eve r a l d i f f e re n t
departments within Nintendo Co., Ltd. as
well as with our overseas subsidiaries.
Mitsuo Amano
General Manager,
Quality Assurance Department,
Nintendo Co., Ltd.
21
22
With Our Production Partners
Nintendo employs the fabless production model,
meaning tha t we do not own the facilities tha t
manufacture our products. We work with suppliers
and factories around the world, to which Nintendo
outsources assembly, to improve the quality, safety
and efficiency of the entire production process.
By sharing our ideas and best practices with our
production partners, we are able to strengthen our
working relationships with them. We try to assist
them in improving their technical strengths and
encourage them to maintain a healthy corporate
culture within their organizations, which in turn helps
us achieve our business and CSR goals.
CSR Procurement Guidelines
14
Focusing on building trust and achieving mutual
understanding with production partners, Nintendo works
closely with them to implement and, where necessary,
improve on good business practices in their procurement
processes. We regard this as an essential precondition to
earning and maintaining the public’s trust in the safety
and security of our products. In communicating to our
production partners our expectation that they also adopt
socially responsible procurement practices, we have
provided the Nintendo CSR Procurement Guidelines from
July 2008, to each of the nearly three hundred production
partners with whom we work closely to facilitate and
encourage compliance in every phase of production.
Companies
Survey to report an overview of their current situation,
including their CSR efforts. In addition, Nintendo conducts
on-site inspec tions to help our par tners reach and
maintain the standards stipulated in the Nintendo CSR
Procurement Guidelines. Prior to our on-site inspections,
we provide instructions and a detailed Nintendo CSR
Procurement Checklist that enables our produc tion
partners to self-inspect their production sites. In fiscal year
2009, we carried out on-site inspections at 14 major
production partners (including 7 new partners) and worked
with them to initiate improvements wherever necessary.
While the main purpose of these inspections is to give us
a first-hand look at on-site conditions, they also provide us
an oppor tunit y to communicate the Nintendo CSR
procurement concept to our production partners. Nintendo
will continue to carry out such inspections and follow-ups
while promoting the fulfillment of our objectives. (For more
information, please see the feature article on PP. 9 - 12.)
At a Production Partner’s Site
Nintendo CSR Procurement Guidelines
On-Site Inspection Flow
• Promote compliance and respect for human rights
• Ensure occupational health and safety
• Practice of corporate ethics and fair trade
• Environmental conservation
Self-inspection using the checklist
Production partner scheduled for on-site inspection performs
self-inspection using the Nintendo CSR Procurement Checklist
• Product safety assurances and quality guarantees
Working with Our Business Partners
•Thoroughness of information management
• Policies and controls for emergency response planning
• Contributions to society
We place great importance on building strong relationships
with all of our business partners so that we can work together
to offer the best products for consumers.
Conduct on-site inspection
Confirm actual on-site conditions pursuant to the Nintendo CSR
Procurement Guidelines
• Adherence to delivery dates and stable supplies
Provide feedback
Provide produc tion par tner with summar y of results and our
required improvements
Production Partner Inspections
One of the important ways in which Nintendo works with
production partners to ensure CSR compliance is to ask
them to periodically submit the Business Partner Status
Follow-up
Conduct follow-up survey to track improvement progress
On-Site Inspections: 14 Companies
23
I n fi s c a l yea r 2 0 0 9, N i nte n d o co n d u c te d o n - s i te
inspections of each of its major production partners.
24
With Our Development Partners
With Our Sales Partners
Nintendo develops game devices and software
both independently and in cooperation with a wide
range of development partners. The key fundamentals
in designing attrac tive produc ts with our
development partners are sharing values regarding
cooperative product development, mutual respect for
the roles and abilities of those involved and a strong
sense of appreciation for the contribution of each
individual involved in the process.
To expand our consumer base, the cooperation of
our sales partners is essential to effectively convey
the appeal of our products to consumers around the
world. Nintendo continues to build relationships
based on trust and encourages open communication
with its sales partners.
A Development Partner’s Comments
Sh a r i n g Va l u e s w i t h N i n te n d o a n d
Developing High-Quality Products
Our company has been involved with
Nintendo since the development phase of the
lithium-ion bat ter y, a crucial component of
Nintendo DS. What we have learned along the
way is that Nintendo has a strict approach to
safet y, as well as ver y detailed evaluation
c r i te r ia. We we re ve r y i m p re s s e d by h ow
thorough they are in creating products that can
be used by anyone, from young children to
senior citizens. It was Nintendo that gave our
safet y technology the highest praise.
Complying with their strict requirements pushes
our bat ter y tec hnolog y for ward. We look
forward to continuing this great relationship so
we can collaborate and contribute to creating
new forms of entertainment.
Shoichiro Watanabe
Director, Technology Development Center,
Panasonic Corporation, Energy Company
25
Cooperation with On-Site Sales Promotion
Nintendo Co., Ltd.’s sales staf f of fer suppor t to
individual retailers by providing appropriate sales
promotion tools and produc t display concepts. In
addition, we work to ensure that product information
is communicated to our sales par tners in a timely
fashion. To further promote our products, we arranged
for approximately 1,000 retail stores (as of the end of
March 2010) to be outfitted with Wii Stations that show
video footage of the latest Wii games and DS Stations
that show video footage and allow download
functionality for trial versions of Nintendo DS games.
At some locations, users can play newly released Wii
and Nintendo DS games.
Our overseas staff
also cooperate with
their sales partners to
promote marketing
ac tivities to ensure
that they are tailored
to the characteristics
of t h e i r re s p e c t i ve
regions.
New Product Information Sessions
Since enter tainment plays an es sential role in
Nintendo products, the appeal of our products and
the clear presentation of their special features to our
sales partners are key to the development of effective
sales promotion.
For newly released products, Nintendo Co., Ltd.
holds new product information sessions in which our
sales staf f direc tly explain the produc t s’ special
features to sales par tners. At such sessions,
Nintendo’s partners have the opportunity to play with
the products in order to understand their appeal so
that they can better support the products at the retail
level. Also, these information sessions have become a
valuable way for us to gather information about the
reaction of consumers and feedback from store staff.
Many sales partners attended these sessions in fiscal
year 20 09, and it was a valuable oppor tunity for a
candid exchange of opinions.
We appreciate our partners’ feedback, especially in
regard to packaging design and sales promotion
tools, and in some cases we have made changes
based on this feedback. Tight release schedules
sometimes make doing this difficult, but we always
strive to use feedback when marketing our products.
Wii Station (no trial features)
and DS Station
Overview of Fiscal Year 2009
and Future Issues
We at Nintendo believe that retail
stores are crucial in effectively supporting
our consumers because this is where
consumers first interact with our products.
In fiscal year 2009, we developed the
Nintendo Search Guide, a data search
terminal, and installed innovative product
displays in collaboration with our sales
partners in order to create a more fun
and attractive retail floor for consumers.
Although both of these projects have
only just begun, consumer response to
date has been very positive.
We plan to share what we have learned
from these efforts with all of our sales
par tner s in order to make fur ther
improvement s and will continue our
mission to put smiles on the faces of as
many people as possible.
Juro Takeuchi
Nintendo Co., Ltd.
A New Product Information Session for Sales Partners
Manager, Sales Strategy Group,
Sales Planning and Strategy Department,
Nintendo Co., Ltd.
DS Station Improvements
Previously, the DS Station combined features
for showing video footage of new sof t ware,
downloading additional items such as trial
versions and enjoying games all in a single unit.
I n fi s c a l y e a r 2 0 0 9, w e b e g a n s e p a r a t e l y
installing Nintendo DSi specifically for trial
purposes, which enabled us to optimize space
by making more room for both consumers who
want to try out the devices and consumers who
want to download software.
26
Supporting Employees to Benefit the Company as a Whole
Nintendo recognizes that the strength of each
employee underlies Nintendo’s competitive edge.
We strongly believe that promoting the
development of each employee’s potential to the
fullest is the best way to increase the long-term
collective strength of the company and is the best
path to job satisfaction for each individual.
Nintendo Ideals for Employees
34%
As the entertainment business is always searching
fo r n e w i d ea s , Ni n te n d o s t r i ve s to fo s te r i n i t s
employees the traits listed in the Ideals section below
in order to achieve the goal of putting smiles on the
faces of everyone we touch.
At Nintendo Co., Ltd., we have the Nintendo Code
of Conduct, which is based on “Nintendo DNA”- the
core values that represent the essential spirit upon
which Nintendo was founded - and the Nintendo
Standards of Behavior. Nintendo employees are
acutely aware of their responsibilities to society and
comply with our codes and standards. Our overseas
subsidiaries have also implemented their own codes
of conduct, adapted to the laws and regulations of
their respective countries.
Nintendo Ideals for Employees
Cultivating Human Resources
Nintendo understands the value of investing in its
human re source s by providing the profe s sional
d evelo pment tools that c an help all employees
optimize their skills and achieve the Nintendo Ideals
for Employees. For instance, we offer a full range of
in - house tr aining prog r ams at eac h s t ag e of an
employee’s career, including extensive orientation for
n e w e m p l oye e s a n d a c t i ve o n -t h e - jo b t r a i ni ng
programs in each department. Our employees also
have regular opportunities to participate in external
seminars for career growth. In addition, the company
periodically provides opportunities for employees to
review their competencies and create development
plans that aid them in improving their job skills while
focusing on their professional career growth.
Nintendo Co., Ltd.’s in-house training provides
oppor tunities for employees from dif ferent
departments to broadly express their ideas and share
different perspec tives. It is our hope that through
these oppor tunities, employees c an make fresh
discoveries and experience personal growth, which
will ultimately lead to broadened perspectives, and
improved communication and leadership skills.
Our over seas subsidiaries similarly of fer their
employees a wide range of professional development
opportunities and continue to enhance their training
programs and systems.
Open Communication
Gain the understanding and empathy of those around you,
and contribute your strengths to the team.
Consideration of the Viewpoints of Others
Avoid self-centered ways of thinking and be conscious of
the viewpoints of others.
Spirit of Service
Take pride in helping others and bringing happiness to
them.
Intellectual Curiosity
Maximizing Our Employees’ Strengths
Be open to new information and experiences, especially in
the face of progress and dramatic change.
Originality and Flexibility
Do not rely on past successes and ideas, but formulate
new, innovative proposals.
Manager Training
Nintendo is committed to creating and maintaining a work environment
where all employees can apply and develop their strengths
in order to realize their full potential.
34%: Percentage of female staff
(Nintendo Co., Ltd. and major overseas subsidiaries,
as of the end of March 2010)
27
Nintendo aims to strengthen the company through
its equal opportunity policy.
28
Promoting a Diverse Environment
Voice
Nintendo of Europe GmbH, Italy Branch
Group Training to Improve Teamwork
Recognizing that strong working relationships
are a key element in our workplace environment,
the staff of Nintendo of Europe’s Italy branch
participated in a two-day outdoor retreat, where
they engaged in intensive team-building training.
Employees learned how to bring out the best in
each other by performing activities that promote
self-development, leadership and problem solving
all while tackling common problems as a group.
Participants commented that they acquired many
valuable insights through their participation. Since
this ac tivit y proved successful, Nintendo of
Europe’s Italy branch intends to repeat it and will
take par ticipant feedback into account when
making future improvements.
Equal Opportunity
and Respect for Diversity
Balancing Work and Family
Nintendo recognizes the importance of employing
individuals with a broad range of abilities to increase
the collective strength of our company. We respect
and seek to make full use of the multifaceted talents
and strengths of each employee. In addition, our
employee assessments are based on merit, and our
employment policies are in line with laws governing
the fair treatment of employees, regardless of their
gender, age, nationality or disability.
Trends in the Number of Employees (consolidated)
53
2005
1,374
2006
1,430
1,186
537
3,150
91
1,219
3,373
633
227
2007
1,566
1,336
639
3,768
251
2008
1,665
1,466
R e a l i z i n g t h e i m p o r t a n c e a n d b e n e fi t s o f
maintaining a healthy work-life balance, Nintendo Co.,
Ltd. makes every effort to promote time management
a n d w o r k e f fi c i e n c y, a f f o rd i n g e m p l oye e s w i t h
oppor tunities for career grow th while suppor ting
them to fully exercise their talents.
Nintendo Co., Ltd. provides child care leave for
employees who wish to start or expand their families,
which enables the employees to return to work after the
leave period. Furthermore, in March 2010, we proactively
updated our rules in advance of the revision to Japan’s
law regarding child care and family care leave.
Our overseas subsidiaries have also established various
leave systems in accordance with the laws, regulations
and customary practices of their respective regions.
How Our System goes Beyond the Law and Supports
Employees’ Work-Life Balance (Nintendo Co., Ltd. only)
1,809
1,527
814
Japan
North America
Europe
Asia / Oceania
Ratio of Male to Female Employees for FY2009
A Trust-Building Activity
Female
34%
66%
Evaluation System for Personal Development
Nintend o Co., Ltd. u se s a foc u sed evaluation
process that enables employees to track and steer
their career development. Employees are provided
with a set of evaluation competencies, including the
Nintendo Ideals for Employees, to help them craft
their own personal development plans.
Employees are first asked to evaluate their own
progress and accomplishments. They then compare
this self-evaluation with the feedback provided by their
managers, and are given the opportunity to discuss any
discrepancies in perception and to outline new goals.
The biannual evaluation also provides an
oppor tunit y for each employee to make personal
improvement proposals which raises awarenes s
regarding the company’s and the employee’s common
objec tives and encourages ac tive involvement on
both sides to achieve those objectives.
FY2008
FY2009
Overall
12.8
12.7
12.6
Male
13.1
12.9
12.7
Female
11.6
11.7
12.1
Turnover rate
1.96%
2.05%
0.84%
Percentage of female
managerial staff
3.85%
4.35%
4.76%
Percentage of employees
with disabilities
2.19%
2.08%
2.01%
16
19
23
1
1
2
21
30
37
Number of employees taking
family and medical care leave
0
0
1
Rate of paid vacation taken
68.5%
69.6%
68.9%
Number of employees
taking maternity leave
Number of
employees
taking child
care leave
Male
Female
Summary
4,425
(Number)
(FY)
Average
years of
continuous
employment
FY2007
4,130
748
275
2009
Employee Status (Nintendo Co., Ltd. only)
Male
Note: Composition ratio of male and
female employees hired by Nintendo Co.,
Ltd. and its main overseas subsidiaries
at the end of March 2010.
Preventing Harassment
I n t h e N i n t e n d o C o d e o f C o n d u c t, w h i c h i s
distributed to every employee, and in the Compliance
Manual, Nintendo Co., Ltd. clearly prohibits sexual
harassment and other ac ts of harassment. These
d o c u ment s cont ain s p ec ific d efini tion s of w hat
constitutes harassment and provide precautionary
steps for workplace situations. If a manager receives a
report or a complaint regarding harassment, he or she
mu s t t ake imme d iate ac tio n to inve s tig ate and
address the situation accordingly.
The codes of conduct of our overseas subsidiaries
also explicitly prohibit acts of harassment.
Child care leave
Up to two years after childbirth
Family care leave
Up to six months per dependent
Reduced work
hours/child care
option
Work-hour reduction of up to two hours
per day until the employee’s children
finish the third grade in elementary
school (approximately aged nine)
Reduced work
hours/family care
option
Work-hour reduction of up to two
hours per day for a limit of six months
per dependent
Reemployment
system
Reemployment of individuals who had
previously chosen to resign from their
positions for the purpose of providing
extended child or family care
Refresh leave
system
Offers special holidays to employees who
have worked a certain number of years
Annual paid
holiday extension
system
Gives employees the option to extend their
periods of accumulated paid holidays if they
plan to use them to participate in
self-enrichment or community service activities
Secure Employment for Employees
N i n te n d o C o., Ltd . s t r i ve s to p rov i d e s e c u re
employment up to the age of 65. To help employees
who are planning for their retirement, the company
periodically invites exper t instruc tors to provide
life-planning sessions.
Due to the dif ferences in laws, regulations and
customary practices, our overseas subsidiaries do not
implement a mandatory retirement age.
Taking Child Care Leave Boosted
My Desire to Work
Nintendo’s child care leave policy has
played an important and positive role in
both my per sonal and bu sines s life.
Recently, when my wife returned to her
parents’ home to give birth to our first
child, which is customary in Japan, I was
able to take a month of f to share this
joyous occasion with them. Caring for
our son gave me a deep appreciation for
the rigors of child-rearing and the
importance of my role as his father. This
fresh perspective has boosted my desire
to work hard not only for my company,
but for my family as well.
Yugo Hayashi
29
EAD Software Development Department,
Nintendo Co., Ltd.
30
Creating a Safe and Healthy Workplace
Nintendo understands that happy and healthy
employees work most efficiently and to the best of
their abilities. With this in mind, we have implemented
a number of health and wellness policies in each
region that support this goal.
Protecting Health and Safety
in the Workplace
At Nintendo Co., Ltd., representatives of the Health
Committee, who serve at our headquarters and branch
offices, and representatives of the Health and Safety
Committee, who work at our plants, take active steps
to ensure health and safety. In addition to performing
ro u t i n e i n - h o u s e i n s p e c t i o n s , t h e s e d e d ic a te d
employees organize educational activities and projects
designed to improve employee health, including the
creation of health and safety notices for display within
the company. Committee representatives also provide
seminars, taught by fire department staff, to equip
employees with helpful knowledge on the use of
life-saving devices such as an AED* .
(Automated External Defibrillator)
*An AED
AED is a por table medical device that automatically evaluates
dangerous cardiac arrhythmias and restores the heart to normal sinus
rhythm using an electrical current.
In ad dition to per sonal consult ations wit h an
occupational health physician, we have incorporated a
mental health suppor t system into the Nintendo
structure. This system consists of self-care support,
and training and education for supervisory staff to
improve their ability in assisting individual employees.
Our overseas subsidiaries have also developed
similar suppor t sys tems aimed at improving the
well-being of their employees.
Nintendo of America Inc.
Promoting Employee Health
Nintendo of America has been recognized by
the American Heart Association as one of its
Start! Fit-Friendly Companies. This designation
recognizes companies that demonstrate their
commitment to promoting exercise and good
n u t r i t i o n i n t h e w o r k p l a c e. F o r e x a m p l e,
Nintendo of America provides employees with
opportunities to exercise, provides healthy food
choices in the cafeteria and holds periodic
programs designed to raise employee
awarene s s of preventive health measure s.
Nintendo of America was recognized for
providing workers with pedometers,
record-keeping notebooks, an online exercise
diary system, ongoing walking challenges and a
variety of other health promotion activities. For
example, one walking challenge included a
t he me f ro m Ma rio Su pe r Slugg e rs, w i t h
four-person teams competing in a Home Run
Challenge, in which 10,000 steps were treated
as a home run.
Nintendo Co., Ltd.
Improving Health Check Results
Nintendo Co., Ltd. started two programs in
J u l y 2 0 0 8 , t h e “A r e y o u h e a l t h y t o d a y? ”
campaign and the “Employee Health
Dec lar ation.” T he g oal s of t he s e ong oing
programs are to increase employee awareness
about health management and improve their
personal health check results.
I n fi s c a l y e a r 2 0 0 9, m a n y e m p l o y e e s
participated in the Employee Health Declaration
campaign and shared personal declarations of
their own health results on the company intranet.
This created an opportunity for employees to
exchange information and increase overall
awareness. Many participants commented that
the process made them more aware of their own
health. By continuing this campaign, the company
is able to further promote health awareness and
maintenance among its employees.
Request for Participation in the Employee Health Declaration
on the Intranet
Supporting the Creation of
a Comfortable Workplace
First Aid Training
Voice
Physical and Mental Well-being
Nintendo Co., Ltd. provides full suppor t for the
prevention of physical and mental disorders. For
example, the company supports employees’ proactive
health maintenance plans and has es tablished a
health consultation room. This room is staffed by an
occupational physician, who is available for
c o n s u l t a t i o n s a b o u t e i t h e r p hy s i c a l o r m e n t a l
concerns. The health consultations were enhanced in
July 2009 with the addition of a public health nurse.
Start! Fit-Friendly Companies Gold Logo
Overview of Fiscal Year 2009
and Future Issues
I can sense that Nintendo’s employees
are very aware of health issues. This is
also reflected through our Health and
Safet y Commit tee, whose member s
actively make proposals with the goal of
creating a safe and healthy workplace
for employees. Many of us spend much
of our lives in the workplace, so it is very
rewarding to share ideas with other
employees regarding how we can spend
this time in a healthy manner.
Nintendo has a unique and wellestablished organizational culture, which
t h e co m p a ny refe r s to a s N i nte n d o
DNA. Nintendo DNA comprises codes
for creativit y, flexibilit y and honest y,
which are the sources of Nintendo’s
s t re ng t h. To d i s s e minate Ni nte nd o
DNA, the company needs a work
environment where employees tackle
their jobs with smiles on their faces,
show mutual respect and concern for
one another, and respect diversity.
The open exchange of opinions
invited by this kind of environment,
individualized feedback via evaluations,
opportunities for employees to make
proposals to the company and unique
policies for health management are all
linked to the zeal employees show in
their work and healthy internal
communication. The company will
continue to seek a means of making all
those involved with Nintendo happy in a
way that is unique to Nintendo.
Koji Miyake
Manager, Personnel Group,
Personnel Department, Nintendo Co., Ltd.
Masato Isa
31
Occupational Physician,
Nintendo Co., Ltd.
32
591
locations
Eco-Friendly Products
Nintendo has established internal standards to
design eco-friendly products that respect the global
environment from the initial product planning stage
all the way through to product end-of-life disposal.
For example, we develop energy-efficient designs at
the product planning stage, and select component
par ts and packaging materials with careful
consideration for environmental sustainability.
Our Approach to Chemical Substance Control
We believe that it is one of our corporate social
responsibilities to follow the precautionary principle
and avoid the use of substances that could adversely
affect the environment or human health.
Under Nintendo’s own substance control standards,
we have labeled certain substances as EnvironmentRelated Substances, and we manage them in three
categories: Banned Substances, Substances Subject to
Early Withdrawal and Substances Under Application
Control. We also require supplier compliance with the
REACH Regulation*1 as part of our green procurement
methodology.
*1
REACH Regulation
A European Union (EU) regulation aimed at evaluating the safety and
controlling the use of chemical substances. REACH requires that
chemical substances be registered with the European Chemical
Agency if they are to be manufactured, imported or used in the EU.
game systems, and we have incorporated halogenfree components in some of our products.
RoHS Directive
*A 2European
Union (EU) directive that restricts the use of lead, mercury,
cadmium, hexavalent chromium, polybrominated biphenyl (PBB) and
polybrominated diphenyl ether (PBDE) flame retardants in cer tain
electrical and electronic equipment.
GS Certification
*A 3product
safety certification system in Germany that uses trusted
certification institutions to guarantee that a company is performing
product safety inspections and continuous quality assurance.
Environment-Related Substances
(Revised August 2010)
Banned Substances
Re s tric ted - use subs t ance s c ur rently subjec t to
enac ted legislation or substances that Nintendo
deems inappropriate for use.
Substances Subject to Legal Regulation
C ad mium and C ad mium C o m po und s, Hexavale nt C hro mium
Compounds, Lead and Lead Compounds, Mercur y and Mercur y
Compounds, Tributyl Tin Oxide ( TBTO), Tributyl Tins ( TBTs) and
Triphenyl Tins (TPTs), Polybrominated Biphenyls (PBBs), Polybrominated
D i p h e ny l E t h e r s ( PB D E s), Po l yc h l o r i na te d Bi p h e ny l s ( P CB s),
Polychloronaphthalenes (PCNs), Short Chain Chlorinated Paraffins
(SCCPs), Asbestos, Azocolorants and Azodyes, Ozone-Depleting
Substances, Radioactive Substances, Phthalate Esters (six substances),
PFOS-Related Substances, Benzene, Dimethyl Fumarate
Substances Regulated by Nintendo
Natural Rubber (may cause allergic reactions)
Substances Subject to Early Withdrawal
Use of Safer Substitutes
Bringing Smiles to Future Generations
As part of our commitment to preserve a healthy planet for future generations,
we at Nintendo recognize our responsibility to protect the environment
and take positive steps to conduct business in an appropriate manner
with due concern for the environment.
591 locations: Number of Green Suppliers
Since Nintendo products are often used by young
children, we apply the same safety standards as those
required for toys. This means that we comply with the
RoHS Directive *2 and the Toy Safety Directive (see P.
17) as well as the toy safety standards of many other
countries. In addition, we obtain GS certification*3 and
evaluate the use of allergens and other substances.
As part of our efforts to reduce our impact on the
environment, we are aggressively seeking
replacement materials for poly vinyl chloride and
bromide fire retardants, which are categorized as
either Substances Subjec t to Early Withdrawal or
Substances Under Application Control. Whenever and
wherever possible, we incorporate the use of safer
substances in our manufacturing processes, so long as
this does not compromise the safety and quality of
our products. For example, we have eliminated the
use of polyvinyl chloride in the manufacture of our
plastic playing cards and internal components of our
Substances expec ted to be classified as Banned
Substances due to the enactment of future legislation.
As part of our risk management and environmental
protection efforts, Nintendo plans to switch over to
alternative substances and remove these substances
from our products as soon as possible.
Poly vinyl Chloride (PVC), Chlorinated Compound s, Bromine
Compounds
Substances under Application Control
Substances that with prolonged exposure pose a
potential health risk and in Nintendo’s view, require
continual monitoring of their content levels.
A n t i m o ny a n d A n t i m o ny C o m p o u n d s , A r s e n i c a n d A r s e n i c
Compounds, Beryllium and Beryllium Compounds, Bismuth and
Bismuth Compounds, Nickel and Nickel Compounds, Selenium
and Selenium Compounds, Brominated Flame Retardants (BFRs)
(excluding PBBs and PBDEs), Bis (2-methox yethyl) phthalate,
Bisphenol A, Alkylphenols (carbon atoms: 5 to 9), 2,4-Dichlorophenol,
Di(2-ethylhex yl) adipate, Benzophenone, Oc tachlorost yrene,
Trichloroethylene, Tetrachloroethylene, the REACH Candidate List
of SVHC for Authorisation
WEB For more information about our efforts, please see
Nintendo Co., Ltd.’s CSR Q&A: Environmental Measures.
(As of the end of June 2010)
33
We make every effort to ensure product quality and
safety by promoting green procurement practices in
cooperation with each of our production partners.
34
Material Procurement Based on
Chemical Substance Control
Ve r i fi c a t i o n Te s t i n g o f C h e m i c a l
Substances Contained in Products
Nintendo Co., Ltd. exercises manufacturing control
over the manufac ture of its produc ts through the
selection of component parts. We developed a review
process for parts procurement that eliminates the use
of any harmful chemical substances. In line with this,
we have established our own environmental control
standards to achieve green procurement *1.
Produc tion par tners and component par ts that
meet our standards are cer tified, respec tively, as
Green Suppliers and Green Par ts, and the entire
procurement process is tracked through our computer
database. We certify Green Suppliers on-site at their
produc tion facilities. As of the end of June 2010,
Nintendo had certified a total of 591 Green Suppliers
and 13,783 Green Parts.
Nintendo Co., Ltd. requires its suppliers to perform
chemical analyses, especially for certain substances of
particular concern, such as phthalate ester, which we
c ategorize as Banned Subs tances. We is sue
manufacturing process guidelines to our suppliers,
which specify methods for controlling the use of such
substances, because there is always a risk of
contamination during the manufac turing process,
even if it is not used in the product itself.
To ensure that our produc ts contain no Banned
Substances, Nintendo Co., Ltd. has a department that
conducts chemical analyses of component parts at
each stage of product development, from selection of
part materials during product design to production of
the final product. Tests to monitor the concentrations of
chemical substances contained in the component parts
are conducted at the final stage of specification design
or during mass production trials. For the majority of
these tests, we perform the testing ourselves, using our
own equipment, and we contract out to international
third-party certification organizations as needed.
1 Green Procurement
The practice of prioritizing the selection and procurement of products
and component par ts that are safe for humans and for the
environment.
*
Promoting Green Procurement
In 20 05, Nintendo Co., Ltd. launched the Green
Procurement Project. As a part of this initiative, we
h o l d m o n t h l y p r o j e c t m e e t i n g s to d i s c u s s o u r
compliance with laws and regulations in various
countries and how we can further our environmental
efforts going forward.
Since July 2008, we have conducted seminars with
the departments related to green procurement, with
the aim of increasing environmental awareness. In
fiscal year 2009, a total of eight seminars were held
w i t h a p p r ox i m a t e l y t h r e e h u n d r e d e m p l o y e e s
participating.
Our green procurement methodology has been
communicated to Nintendo’s overseas subsidiaries
which have adapted their rules for green procurement
based on the specifications established by Nintendo
Co., Ltd.
35
A Green Supplier’s Comments
Energy-Saving Design
Nintendo’s commitment to protect the environment
ex tend s to the development of energ y- ef ficient
products.
For example, in developing Wii, we used cuttingedge technology that reduced the size of the
semiconductor chips, thereby reducing the overall size
of Wii and lowering the power consumption.
In addition, we have redesigned Wii and Nintendo DS
L i t e to s a t i s f y a p p l i c a b l e e n e rg y c o n s u m p t i o n
requirements of the ErP Directive*2 (also known as the
Eco-Design Directive). In addition, Nintendo DSi and
Nintendo DSi XL have already satisfied the applicable
requirements, before the Directive has come into effect.
Furthermore, the Nintendo DSi and the Nintendo
DSi XL AC adapters (for 100 to 120V markets) have
achieved an energy performance level that is equivalent
to the external power supply device requirements for
Level 5 energy performance stipulated in the Energy
Star program*3, an international energy performance
rating system.
Nintendo of America Inc.
Reducing the Weight of the Wii Game Case
In fisc al year 2 0 0 9, Nintend o of A meric a
partnered with a game case vendor to attempt
to reduce the weight of the Wii game case by
removing sections of plastic from both the front
and bac k of t he c a se. In t he end, we were
successful in developing a lightweight game
case, weighing just 48.9g, which is 26% lighter.
Per year, this change is estimated to result in a
decrease of approximately 6 40 tons of CO 2
generated from the production process for the
Wii game case and a reduction of approximately
4 6 0 tons of plastic material. In addition,
N i n te n d o o f A m e r i c a ha s e l i m i n a te d P VC
clamshells from all retail packaging and
converted Wii accessory packaging from plastic
clamshells to rec yclable paper material to
reduce the environmental impact.
2 ErP Directive
*The
Direc tive on the Eco-Design of Energy-using Produc t s (EuP
Working with Nintendo to Deliver
Safe Materials
Of the many substances contained in the
products we deliver to Nintendo, one of the
most difficult substances to manage is phthalate
ester. It is not just a matter of controlling the
r aw material s, bu t i t i s al s o a que s tion of
inadvertent product contamination within our
p r o d u c t i o n f a c i l i t i e s . We n e e d e d t o fi n d
concrete ways to keep phthalate ester out of the
production facility at all stages. To accomplish
thi s, we s at d ow n with Nintend o to s hare
knowledge and collaborate regarding how to
best approach and resolve this challenge. We
look for ward to continuing our work with
Nintendo to provide products that are safer and
at the same time better for the environment.
Naoya Takehara
General Manager, Quality Assurance Center,
Hosiden Corporation
Directive) was established in the European Union to set forth basic
policies that promote eco-friendly design for products marketed in
the EU. In November 2009, the EuP Directive was replaced by the new
Energy-related Products Directive (ErP Directive). The ErP Directive
basically ex tended the scope of the EuP Direc tive to cover both
energy-using products under the old EuP Directive and products that
are energy-related but do not directly consume energy.
Former Game Case (left) and New Game Case (right)
3 Energy Star Program
*The
Energy Star program evaluates energy-saving standards for office
automation equipment. Since the rated power output of the Nintendo
DSi and the Nintendo DSi XL AC adapters is 4.14W, standby power
requirements must be 0.3W or less and average power efficiency must
be 6 6.8% or higher to meet the Level 5 requirement s. However,
because handheld gaming devices do not fall within the scope of this
program, the Nintendo DSi and the Nintendo DSi XL AC adapters are
not officially accredited with the rating.
Conserving Resources, Recyclable Design
We design our products to promote recyclability
through reduction of the use of composite materials*4,
using materials that are easily separated, and thus
more recyclable, while clearly indicating all material
content. Similarly, Nintendo is making every effort to
reduce energy and resource consumption through the
use of less packaging.
Post-Sales Recycling
Nintendo considers the promotion of recycling
products and packaging as one of its most important
re s ponsibilitie s. We provid e consumer s with
information regarding recycling and product disposal
as well as par ticipate in take-back programs and
recycling programs in the various countries we operate.
WEB For more information about our local recycling efforts, please
see Nintendo Co., Ltd.’s CSR Q&A: Environmental Measures.
4 Composite Materials
The integration of two or more significantly different raw materials
such as paper + aluminum or paper + plastic.
*
36
Environmentally Conscious Business Activities
Reducing Water Usage
Nintendo employs the fabless production model in
which all of our produc tion processes, such as
component part manufacturing and product assembly,
are outsourced to domestic and overseas production
partners. While Nintendo’s own environmental efforts
focus on business processes that occur within our own
facilities, we also understand the importance of being
aware of the environmental issues that affect the
production processes of our production partners, and
we continually review their activities.
Nintendo of Europe GmbH
Promoting Modal Shift
Nintendo of Europe continues to utilize the
m o d a l s h i f t* a n d c u r r e n t l y r e l i e s o n r a i l
transpor t as its main means of produc t
transport. As a result, compared to fiscal year
2007, when this effort began, CO 2 emissions for
fiscal year 20 09 decreased by 33% (or a total
amount of 3,168 tons).
Modal Shift
*Modal
shift refers to the process of giving preference to
Energy-Saving Activities
the use of more energy-ef ficient and environmentally
benign modes of transport.
When Nintendo opens a new office, it makes every
effort to create facilities that are eco-friendly, up to
a n d i n c l u d i n g t h e u s e o f e n e r g y - e f fi c i e n t a i r
conditioning and facility lighting. In addition, 21% of
the power consumption for Nintendo of Europe comes
from renewable energy sources, which helps minimize
our environmental impact and carbon footprint.
However, as consumer demand for our products
increases, so too does our work load. Hence,
Nintendo’s total CO 2 emissions in fiscal year 20 09
unfor tunately increased over the previous year by
0.2%. Nevertheless, on a per-employee basis, CO 2
emissions have fallen, and we continue to promote
energy-saving strategies at all of our locations.
CO2 Emissions
Total
2007
16,105
2008
17,314
2009
17,364
(tons-CO2)
(FY)
Per unit of Output
2007
2008
2009
0.96
0.94
1.21
4.3
4.2
3.9
Emission volume per
employee (tons CO2 per
employee)
Emission volume per
sales unit (tons CO2 per
100-million-yen unit)
(FY)
•Excludes information for Nintendo of Korea.
•We revised the amount of CO 2 emissions from Nintendo Co., Ltd. and Nintendo
France for fiscal year 2008.
•Some of our subsidiaries’ amounts for Januar y 2010 to March 2010 include
estimates, and we revised the amount of CO 2 emissions from Nintendo of
Europe for fiscal year 2007 to 2008.
80
2008
2009
42
20
20
17
13
(%)
Barge
2009
92
(1000m3)
84
98
•Excludes information for Nintendo of Korea and Nintendo of Europe’s Italy Branch.
•We revised the amount of water usage from Nintendo France and Nintendo of
Canada for fiscal year 2008.
•Some of our subsidiaries’ amounts for Januar y 2010 to March 2010 include
estimates.
67
(FY)
Truck
2007
(FY)
41
Train
Implementing Environmental Education
Voice
Promoting Waste Reduction
and Recycling
Nintendo s trives to limit the use of resources,
minimizes waste production and encourages waste
separation so that waste materials can be recycled to
the greatest extent possible. At each of its offices,
Nintendo Co., Ltd. has established a system of waste
processing and management, including recycling, and
has appointed a supervisor to oversee the effort at
each location.
Similar systems for waste management and
recycling are also in place at our overseas subsidiaries.
Current ef for ts include conversion from paper to
electronic work flows to reduce paper consumption.
Amount of Waste
2007
2008
2009
8,730
(tons)
9,176
8,947
(FY)
•Excludes information for Nintendo of Europe’s Italy Branch.
•Excludes information for Nintendo of Europe’s UK Branch for fiscal years 2007
and 2008.
•Some of our subsidiaries’ amounts for Januar y 2010 to March 2010 include
estimates.
Overview of Fiscal Year 2009
and Future Issues
Water Usage
2008
Trends in Transportation Methods
2007
Nintendo recognizes that water scarcity is a serious
issue in various regions around the world and that
water will remain a precious resource in the years to
come. With this in mind, we have taken s teps to
reduce the amount of our water usage, including
installation of water-conser ving equipment at our
offices. In addition, some of our overseas subsidiaries
are making conservative use of water resources, for
example, by employing septic systems that re-use
stored rainwater for toilet water or irrigation systems.
Nintendo believes that environmental education is a
critical aspect of our efforts to preserve the environment.
To increase awareness within the organization, Nintendo
Co., Ltd. publicizes its monthly CO 2 emissions and
energy use figures on its corporate intranet and calls for
support in activities to save energy.
Reducing Paper Usage by
Computerizing the Document
Approval Process
To inc rea s e bu sine s s ef ficienc y and
reduce paper use, we converted many of
our internal processes from paper to
electronic. Previously, a single manager
would run nearly all documents awaiting
approval to the relevant per sonnel,
tracking the approval status along the
way. Now that the process is electronic,
we can view approval status online and
search for needed information more
effectively, thereby saving a lot of time
and effort. Moreover, we have eliminated
the need for hard copies, which saves a
lot of paper.
Preservation of the global environment
will continue to be an important theme
for us. Nintendo’s products might not
be as physically large as a car or a TV,
but many people around the world love
to play with them. With this in mind, we
are focusing on green procurement and
eco-friendly designs.
We are also responsible for making
sure that we deliver produc t s to our
consumers that are safe and reliable. It is
easy for “eco-friendly” to be understood
as just a catchphrase, but the relevant
departments are working together to
create truly safe, reliable and eco-friendly
produc t s that will put smiles on the
faces of our consumers. I believe that
Nintendo as a whole will continue to find
new way s to en sure bot h con sumer
safet y and satis fac tion, while at the
s a m e t i m e h e l p i n g t o p r e s e r ve t h e
global environment.
Masanori Yano
Manager, Specifications Group,
Product Evaluation & Engineering Department,
Uji Plant, Nintendo Co., Ltd.
Ángela Mojón
37
Finance Department,
Nintendo Ibérica, S.A. (Spain)
38
Nintendo’s Unique Contributions
We believe that maintaining a wholesome society
i s a n i n t e g r a l p a r t o f N i n t e n d o ’s b u s i n e s s .
Recognizing that we must give back to society, we
consider what kinds of contributions we can best
o f fe r, a n d t h ro u g h o u r a c ti v i ti e s e n d e avo r to
contribute to society as a corporate citizen.
Nintendo Game Seminar (internship program)
Nintendo Co., Ltd.
234
people
Bringing Smiles to the Community
At Nintendo Co., Ltd., we wish to maintain and
promote Japan’s truly world-class game culture and to
contribute to the game industry. Since 2003, we have
been holding the Nintendo Game Seminar, an internship
program that gives participants the opportunity to learn
about game creation free of charge.
During the Seminar, Nintendo developers, who are
currently active at the forefront of game development,
lecture and convey to participants the professional
know-how necessary for game development. Every year
a b o u t 3 0 s t u d e nt s a re ini t ia te d into t h e g a m e development world for a 10-month period, where they
learn practical skills from professional developers and
work together to create games. In fiscal year 2009, 35
students participated in the Seminar, bringing to 234
the total number of students who have participated in
t h e S e mina r s i n c e i t s in c e pt io n. Ma ny of t h e s e
students go on to make creative contributions not
only to Nintendo, but also to other companies in a
variety of industries.
A popular part of the Seminar is a session in which
Nintendo developers share behind-the-scenes stories
of the titles they have worked on. In fiscal year 2009,
this session was entitled “Iwata Asks, Live”, during
which President Iwata himself interviewed Nintendo
game developers. Seminar par ticipants were
especially pleased with this unique session, and said
they would remember it for a long time.
The Nintendo Group, in meeting its corporate social responsibility,
continually seeks ways to serve and contribute to the community in a Nintendo way.
234 people: Total number of graduates from
Nintendo Game Seminar
39
In order to play a role in creating a vigorous future
for the game industry and be instrumental in
enhancing Japan’s truly world-class game culture,
we hold the annual Nintendo Game Seminar by
taking advantage of our strengths.
Contribution of a Nintendo Character
Nintendo Co., Ltd.
In Japan, the Children’s Rights Hotline is a helpline
that children can call for assistance if they believe
human right s have been violated. The hotline is
operated by the Kyoto District Legal Affairs Bureau
a nd ot he r s to p rote c t c hild re n f ro m a b u s e a nd
extreme cases of bullying. Since 1999, to support this
cause, Nintendo Co., Ltd. has been providing our
charac ter Mario in the Children’s Right s Hotline
c a m p a i g n p o s t e r, w h i c h i s d i s t r i b u t e d t o a l l
elementary and middle schools (approx. 660 schools)
in Kyoto Prefecture, and in a mini-calendar, which is
given to each student (approx. 210,000 children). Both
items have been well received by everyone, especially
children.
Cover of the Children’s Rights
Hotline Mini-Calendar
Assistance for Victims of a Disastrous Bushfire
Nintendo Australia Pty. Ltd.
During Januar y and Februar y of 20 0 9, unusual
weather re sulted in a long period d uring w hic h
temperatures exceeded 4 0 degrees Celsius (10 4
degrees Fahrenheit) in the Australian state of Victoria,
and a disastrous bushfire occurred. This bushfire was
the worst one in Australia’s history: more than 200
people died and over 2,000 homes and 3,500 other
buildings were destroyed. Many vic tims lost their
homes along with all of their personal possessions.
In an ef for t to help those af fec ted, Nintend o
Australia visited schools in the bushfire areas, offering
s u p p o r t a n d d o n a t i n g N i n te n d o DS a n d o t h e r
products in the hope that this would, in some small
way, help ease the suffering.
Classroom Scene from the Seminar
40
Support for Starlight Children’s Foundation
Nintendo of America Inc.
Nintendo Australia Pty. Ltd.
Nintendo of Europe GmbH, UK Branch
Nintendo of A meric a, Nintendo Aus tralia and
Nintendo of Europe’s UK branch have been working
with the Starlight Children’s Foundation, a nonprofit
organization that provides suppor t to seriously ill
children undergoing treatment and their families.
Nintendo of America has supported these activities
by creating and updating the Fun Center *1 program,
which provides children with the opportunity to play
their favorite Nintendo games from their hospital
beds via a Fun Center. Throughout the course of this
partnership, more than 6,000 Fun Centers have been
placed in hospitals across North America. In addition
to annually inviting children and their families to its
head office, Nintendo Australia is working to install
new Fun Centers that use Nintendo DS. Meanwhile,
Nintendo of Europe’s UK branch is likewise involved in
placing as many Fun Centers in children’s treatment
centers as possible. It is estimated that as many as
500,000 children are currently using a Fun Center in
t h e U K . N i n t e n d o ’s e m p l o y e e s t a k e p r i d e i n
supporting this foundation.
Support for the Change4Life Health Campaign
Support for Media Literacy Improvement Project
Nintendo of Europe GmbH, UK Branch
Since Oc tober 20 0 9, Nintendo of Europe’s UK
branch has been suppor ting the UK government’s
Change4Life campaign to promote better national
heal t h. T hi s prog r am prov id e s v ar io u s k ind s of
information to help citizens lead healthier lives and
encourages them to improve their eating and exercise
habits.
For two of Change4Life’s programs, Up and About *2
and 60 Active Minutes *3 , Nintendo of Europe’s UK
branch has collaborated with campaign organizers to
promote the use of Wii Fit and Wii Fit Plus, which help
users easily incorporate more exercise into their busy
daily lives.
Up and About
*A 2campaign
to urge people to actively exercise for 30 minutes a day, 5
days a week.
60 Active Minutes
*A 3campaign
that promotes 60 minutes of aerobic exercise every day
for children.
Nintendo of Europe GmbH
Parents and teachers are often skeptical of using
c o m p u te r s a n d v i d e o g a m e s to tea c h c h i l d re n
because there is currently not enough information
about the effectiveness of such digital media. As a
result, many children are not receiving appropriate
educational support from their parents and teachers
regarding the use of digital media.
To close this k nowledge gap and improve the
digital media learning environment for children, since
20 0 8 Nintendo of Europe has suppor ted the
Spielraum Project. This project, implemented by the
University of Applied Sciences in Cologne, Germany,
seeks to improve media literacy *4 by providing parents
and teachers with educational opportunities to learn
more about computers and video games.
The project provides regularly scheduled teacher
and parent workshops, which have been ver y well
received. In addition, to better educate a broader
audience, Nintendo is working in conjunction with
local child protection organizations and video game
indus tr y groups to create a sys tem that enables
various organizations to effectively offer integrated
information on media literacy.
A Post-Operation Child Enjoying Wii Fit Plus
4 Media Literacy
The ability to independently comprehend and sift through information
provided by various media sources.
*
*1 Fun Center
A mobile entertainment device combining a flat-screen TV, a video
game system and a DVD player that can be freely moved around a
hospital.
Support for a Program
to Encourage Young Patients
Nintendo of Europe GmbH
Introducing Change4Life on
the Wii Fit Plus Store Shelves
Children Invited to Nintendo Australia
In A pril 20 0 9, in conjunc tion with Nintendo of
E u r o p e, t h e G e r m a n H e a r t C e n t r e i n M u n i c h ,
Germany launched a program to encourage young
patient s to re sume phy sic al ac tivit y af ter hear t
surgery. This inpatient program for children uses Wii
Fi t Pl u s to h e l p s l o w l y t r a i n a n d i m p r o v e t h e i r
post-operation physical abilities.
Enticed through play and having fun, more than 90
young patients have been able to perform physical
exercise as a par t of their recover y. This program
helps them move and also helps instill a desire to
continue exercising to further their well-being. The
program has been well received not only by the
children, but also by those providing the children with
post-operation care.
Contributing to the Vancouver
Olympics
Nintendo of Canada received a request
f o r a s s i s t a n c e f r o m t h e Va n c o u v e r
O rganizing Commit tee ( VAN OC) to
provide an environment for athletes and
their families where they could relax and
be f ree f rom s tres s during the 2010
Winter Olympic s held in Canada. We
made Nintendo produc ts available at
the athletes’ villages for the duration of
the period requested. We heard that the
athletes really enjoyed playing against
each other using Wii Sports Resort, Wii
Fit and Mario Kart Wii. As a marketer, to
be able to assist in an event as famous
as the Olympic s - especially when it
takes place in my own country - and to
put smiles on the faces of the athletes
made me really happy.
Alexis Hughes
41
Supervisor, Events & Partnerships,
Nintendo of Canada Ltd.
42
Reliable and Trustworthy Business Practices
To gain the trust of those both inside and outside our company, we exercise fair and sound judgment
when running our business and emphasize corporate compliance and risk management.
Corporate Governance
Information Disclosure
At Nintendo, we strive to maximize long-term
corporate value while carefully considering the
b e n e fi t s to eve r yo n e w e to u c h , i n c l u d i n g o u r
consumers, shareholders, business par tners,
employees and the community. We work to achieve a
highly transparent and sound system of corporate
g o v e r n a n c e, a n d w e e d u c a t e o u r e m p l o y e e s
regarding good corporate ethics.
Board of Directors but also meetings of the Executive
Management Commit tee, which consists of some
representative directors from the Board of Directors.
Audits
Nintendo Co., Ltd. has five auditors (as of the end of
June 2010), who constitute the Board of Auditors,
including three external auditors. We also have the
Office of Auditors, which supports and implements
auditor func tions. In addition, aside from audit s
conduc ted by the auditors, the Internal Auditing
Depar tment, under the direc t super vision of the
President, conducts fair and unbiased audits of the
business operations of each department at Nintendo.
Based on the challenges of fiscal year 20 08, an
effor t was made in fiscal year 20 09 to improve the
efficiency of the company’s internal system of auditing
from a risk management perspective.
For accounting audits, the accounting auditor works
in close collaboration with the auditors and the Internal
Auditing Department to report on auditing plans and
results. The accounting auditor exchanges necessary
information and opinions with them during the fiscal
year so as to realize efficient and effective auditing.
Execution and Supervision
of Business Operations
N i n t e n d o’s u n i q u e b u s i n e s s i s b a s e d o n t h e
software-driven integration of hardware and software.
We believe that the optimal managerial structure is
one in which our directors, individuals familiar with our
unique business, can (i) execute their own business
o p e r a t io n s a s d ire c to r s, ( ii ) ma ke d e c i sio n s o n
company-wide business operations and (iii) oversee
the other directors’ execution of business operations
as experienced members of the Board of Directors.
In order to respond in a timely way to changes in the
managerial environment, directors are elected for a term
of one year. In order to effectuate prompt and efficient
decision making, we not only have meetings of the
Corporate Governance Structure
General Meeting of Shareholders
Election/Dismissal
Election/Dismissal
Board of Directors
Appointment/
Dismissal and supervision
Auditing
Board of Auditors
Coordination
Office of Auditors
President
Accounting Auditor
Compliance Hotline
Executive Management Committee
Command/Supervision
Product Safety Committee
Compliance Committee
Product Safety Assurance
System maintenance and
management
Promoting compliance
Each Division (Departments/Offices)
43
Internal Control
System Committee
Coordination
Auditing
Internal Auditing Department
Promotion and
enhancement
of internal control
Internal auditing
Internal Controls
Nintendo Co., Ltd. established the Internal Control
System Committee, which is chaired by the President,
and has enhanced Nintendo’s internal control system
in order to develop, maintain and improve the sound
c o r p o r a te ma nag e m e n t s t r u c t u re of t h e e n t ire
Nintendo Group.
In addition to continuing to upgrade and strengthen
its system of internal controls, the President informs
all employees at Nintendo Co., Ltd. about the internal
c o n t ro l s y s te m, w h i c h c o n t r i b u te s to b u s i n e s s
improvement for the entire company.
We audit our business operations on a global basis
and monitor the internal controls established in each
region, including compliance with Japan’s Financial
Instruments and Exchange Law. We also conduct risk
management inspections. Internal audits for Nintendo
Group companies are conducted by regional internal
audit divisions, located in North America, Europe and
Japan.
No major problems were found through the internal
control audit in fiscal year 2009, and we continue to
enhance in-house education activities.
I n o r d e r to g a i n a n d s e c u r e t h e t r u s t o f o u r
shareholders and investors, Nintendo Co., Ltd. works to
ensure fair, appropriate and timely disclosure of
i n fo rma tio n, a s we ll a s c rea tio n of a co rpo ra te
environment that facilitates the exercise of voting rights.
Financial Result s Briefi ngs and t he
Corporate Management Policy Briefing
Based on the idea that it is important to provide
adequate understanding of our corporate strategies
and business performance, after the announcement of
its financial results, Nintendo Co., Ltd. holds Financial
R e s u l t s B r i e fi n g s f o r s e c u r i t i e s a n a l y s t s a n d
institutional investors (fiscal year 2009: 4 briefings),
and an annual Corporate Management Policy Briefing,
which all representative directors attend. We strive to
provid e all s t akehold er s with prom pt acce s s to
info r ma t io n a t t h e s e m e e t ing s, in c l u d ing Q& A
sessions, on our website.
Transparency
It is essential to understand individual ideas beyond
group boundaries to achieve appropriate governance
t h ro ug ho u t t he Ninte nd o Gro u p. We t he refo re
promote open and ef fec tive communication, and
endeavor to maintain a highly transparent corporate
climate.
In order to improve communication between the
internal audit divisions in each region and streamline
the performance of routine operations, we hold the
Internal Audit Global Conference once a year to share
information and to increase awareness.
Corporate Management Policy Briefing
Smooth Management
of Shareholders’ Meetings
Nintendo works hard to create a corporate
environment that facilitates the exercise of voting
r ig ht s of s ha re h o ld e r s . I n o rd e r to p rov id e o u r
shareholders with as much voting time as possible, we
send out convocation notices approximately three
weeks prior to the date of shareholders’ meetings and
enable shareholder s to vote via the Inter net. In
addition, for the benefit of our foreign shareholders,
we make the notices available in English and have
adopted the Electronic Voting Platform system for
institutional investors.
Domestic Subsidiaries/Overseas Subsidiaries
44
Compliance
Risk Management
Nintendo views compliance as essential to building
and maintaining the trust that is essential for continued
company growth. To ensure strict compliance with
laws, social norms and internal standards, Nintendo has
established and implemented regionally specific
codes of conduct.
Compliance Committee
Nintendo Co., Ltd. established the Compliance
Commit tee, under the direc t super vision of the
E xec utive Management Commit tee, to develop
measures and policies to facilitate compliance. In
fiscal year 2009, we conducted compliance seminars
for a total of 566 participants.
In May 2004, to ensure compliance throughout the
Nintendo Group, we set up the Global Compliance
Committee (GCC), which consists of top management
from Nintendo Co., Ltd. and its major overseas subsidiaries.
No compliance-related violations were reported in
fiscal year 2009.
Compliance Seminar Data (FY2009)
Topic
Participants
Number of
people
Compliance Basics
new recruits of 2009
112
Internal Approval Process
new recruits of 2009
112
Corporate Social Responsibility
and Compliance
Compliance Officers
41
Compliance Basics
(twice)
Compliance Seminar
45
GCC Core Members Meeting
Twice a year, the GCC holds meetings for the core
personnel responsible for legal affairs and compliance
at the major group companies, and by sharing and
exchanging information about compliance-related
i s s u e s a n d f u t u re t a s k s t ha t a f f e c t ea c h of o u r
subsidiaries, these meeting s nur ture a common
ground of understanding.
Reporting Compliance Concerns
Nintend o Co., Ltd. has a com pliance concer n
re p o r t i ng s y s te m t ha t e na b l e s e m p l oye e s w h o
discover fraudulent conduct or business activities that
potentially violate the law, to bypass the normal chain
of command and report directly to the President. We
specify in our rules that employees are protected from
any disadvantage when they anonymously repor t
suspec ted misconduc t. If a repor t is received, the
matter is investigated and handled appropriately.
Our major overseas subsidiaries have established
similar repor ting systems adapted to the laws and
regulations of their respective regions. In the unlikely
event that an employee at one of our subsidiaries
b e co me s aw a re of mi s co nd uc t co mmi t te d by a
member of their executive management, they can also
re por t t he inc id ent direc tly to t he Pre sid ent of
Nintendo Co., Ltd.
For Nintendo, the abili t y to quic kly identif y,
completely understand and accurately evaluate
company risk is critical in order to avoid or reduce
such risk. In the event of an incident or accident that
could produce an unfavorable outcome for the
company, we take the necessary steps to achieve
prompt resolution.
Nintendo’s risk management is structured so that
each division of the Nintendo Group takes direc t
responsibility for the management of its own risk.
Nintendo Co., Ltd.’s Internal Auditing Department
verifies the risk-management system of each subsidiary.
Risk Management for Potential Emergencies
To prepare for emergencies, including natural
d i s a s t e r s , N i n t e n d o C o., L t d . h a s c r e a t e d a n d
published the Crisis Management Manual as well as
the Ac tion Plan for the Control of New Strains of
Influenza in accordance with the company’s Disaster
Prevention Standards. Our overseas subsidiaries have
also established individual restoration and business
continuity plans to prepare for disasters.
In addition, Nintendo Co., Ltd. has introduced the
S a f e t y C o n fi r m a t i o n S e r v i c e S y s t e m t o v e r i f y
employee safety in the event of an emergency. Drills
to administer the system are conducted periodically.
Intellectual Property Protection
contract employees, temporary
employees, seconded employees
301
Information Management and Protection
Ni n te n d o C o., Ltd . ha s e s t a b li s h e d i n - h o u s e
s t a nd a rd s, inc lud ing Info r ma t io n Ma nag e me nt
Standards and Personal Information Management
Standards, to ensure that important information is
appropriately handled. We have a stric t system of
access control that provides for the proper
management of confidential information and personal
information. In addition, staf f engage in regular
training on the proper handling of such information. In
fiscal year 20 09, a total of 2,0 03 par ticipants were
involved in such training and education programs.
have been able to act on the information to combat
piracy by taking various actions, such as sending out
warning letters to of fenders, removing counter feit
produc ts listed on Internet auc tion sites and filing
criminal complaints.
Intellec tual proper t y is the fruit of Nintendo’s
research and development, and serves as the pillar of
N i n t e n d o ’s s u c c e s s . R e c o g n i z i n g t h e c r i t i c a l
importance of protecting its intellectual property,
Nintendo Co., Ltd. has adopted anti-counterfeiting
protec tion mea s ure s in coo per ation w i t h many
industr y groups, including the A ssociation of
Copyright for Computer Software. We continue to
take legal measures against people who infringe our
intellectual property and educate the public about
the importance of copyright protection. Our overseas
subsidiaries also take various measures in cooperation
with the relevant organizations.
In October 2009, in order to identify and go after
counterfeit products with the help of consumers and
other stakeholders, Nintendo Co., Ltd. added a new
page to its website that enables individuals to provide
information on the sale and distribution of counterfeit
products. By the end of May 2010, approximately 8,000
reports had been submitted via this webpage, and we
Webpage for Reporting Counterfeit Products
Copyright Infringement Countermeasures
We are strengthening our measures against
copyright infringement, which costs the industry
dearly every year. In February 2009, Nintendo Co.,
Ltd. won a ruling in Japan that renders illegal the
import and sale of the Revolution for DS (R4DS) as
well as other similar game backup devices.
Despite this legal victory, the import and sale of
these illegal devices has continued.
Since the legal approach ef fec tive in one
countr y c annot neces sarily be relied on to
combat piracy in other countries, it is difficult to
counter the spread of these kinds of devices on a
g l o b a l s c a l e. We b e l i e v e t h a t t h e fig h t to
eliminate piracy will be helped by educating the
public about the harm done to the game industry
through the proliferation of unauthorized devices,
pirated software and counterfeit products.
The R4DS Piracy Device
46
A Message Regarding This Report
Nintendo Overview
Company name: Nintendo Co., Ltd.
Location: 11-1, Kamitoba Hokotate-cho, Minami-ku, Kyoto
Ayako Sonoda
Secretariat Director, Sustainability Forum Japan,
Director, Environmental Business Women,
President, Cre-en Inc.
Founded: September 1889
Incorporated: November 1947
Capital: 10,065,400,000 yen
In t hi s yea r ’s inte r v iew w i t h
Nintend o Co., Ltd. Presid ent, Mr.
Iwata, a word in particular stood out:
“innovation.” Innovation, as a CSR
theme, holds great potential and, in
fact, it is essential to drive revolutionary
change within social systems as we
seek to solve a variety of social and
environmental is sues. Among the
topics Mr. Iwata discussed, I felt the
most important one was to question
one’s own preconceptions in order to
break down imaginary walls and to do
thing s that ot her s believed to be
impossible. You cannot create new
values without first changing
established ways of thinking. I
strongly sympathize with the policy of
break ing dow n imaginar y walls in
ord er to br ing ha p pine s s to even
more people around the world.
Expanding the definition and scope
of games also increases their impact:
games do more than just entertain.
They serve other roles as well. From
providing stress relief to promoting
health and serving as tools to bridge
gaps in communication, games now
offer a variety of ways to bring people
together, regardless of age, gender
or race. A s an example of the new
inroads made by games, in fiscal year
2009, the American Heart Association
endorsed the use of active software,
such as Wii Fit Plus, to promote good
health. This endorsement was in itself
revolutionary, marking the first time a
video game has been recognized as
having the potential to lower the risk
of various lifestyle illnesses while still
b e i n g f u n t o p l a y. H e r e i n l i e s a
possible future for games, a future in
w hic h t hey are seen a s nece s sar y
tools for improving our quality of life.
On the other hand, there are
u n fo r t u na te l y t h o s e w h o a re s t ill
skeptical about games. Last year, Mr.
Iwata’s message suggested that if
Nintendo employees notice that what
they are doing is not bringing them
closer to their goal, then they must
stop and ask themselves whether they
are doing the right thing. I recognized
the need to increase game literacy in
ad dition to media literac y, within
society. It is also impor tant to take
proac tive ac tion to anticipate
potential challenges and act quickly
to put preventive measures in place
as new products would bring not only
new expec tations but also the
possibility of new risks.
The CSR Report 2010 has introduced
many business partners of Nintendo.
While this visibility has increased trust
levels with these strategic allies, in
ord er to f ur t her encour ag e ot her
socially-responsible joint activities,
such as CSR procurement, it is vital for
Nintendo to share its philosophy of
putting smiles on the faces of
ever yone it touches, and promote
better communication. For example,
in ISO 26000, supply chain issues are
becoming more impor tant. W hen
issues arise that require resolution, it
is important for Nintendo to discuss
and work together with its partners to
quickly resolve them.
Regarding Nintendo’s environmental
impact, progress has been seen each
year in the handling of chemical
substances. However, even companies
that do not maintain their own
fabrication facilities are expected to
reduce the total environmental
impact of their products throughout
the product lifecycle (from
m a n u f a c t u r e t h r o u g h d i s p o s a l ).
Nintendo needs to consider ways of
making the amount of resources and
energ y used per unit of hard ware
more visible so that they can be
reduced.
Lately there has been talk of Gross
National Happiness * (GNH), a new
indicator that differs from the Gross
Domestic Product (GDP) in that it is
a n in d ex of ha p pin e s s, n ot ju s t a
measure of commerce in a country. As
an indicator, the GNH measures the
qualit y of life or social progress in
more holistic and psychological
terms. In the future, with this in mind, I
expect Nintendo’s games to increase
GNH by enriching people’s quality of
life even more.
Business description: Manufacturing and sales of home leisure equipment
Nintendo website: http://www.nintendo.co.jp/ (Japanese)
Consolidated Subsidiaries:
Japan
ND CUBE Co., Ltd.
Brownie Brown Inc.
MONOLITH SOFTWARE INC.
Project Sora Co., Ltd.
Wii no Ma Co., Ltd.
Mario Club Co., Ltd.
Europe
Nintendo of Europe GmbH
Nintendo France S.A.R.L.
Nintendo Ibérica, S.A.
Nintendo Benelux B.V.
North and South America
Nintendo of America Inc.
Nintendo of Canada Ltd.
NES Merchandising, Inc.
NHR Inc.
HFI Inc.
Nintendo Technology Development Inc.
Nintendo Software Technology Corporation
SiRAS.com Inc.
Retro Studios, Inc.
Transition of Net Sales (consolidated)
Other areas
Nintendo Australia Pty. Ltd.
Nintendo of Korea Co., Ltd.
Nintendo Phuten Co., Ltd.
iQue Ltd.
iQue (China) Ltd.
Nintendo (Hong Kong) Limited
Regional Net Sales Composition Ratio
Segment Net Sales Composition Ratio
(consolidated: FY2009)
2005
2006
509,249
Other
80,791
Japan
231,424
(consolidated: FY2009)
Playing cards,
Karuta, etc.
2,774
Software
567,724
966,534
2007
1,672,423
2008
Total
1,434,365
1,838,622
2009
1,434,365
(FY)
Total
1,434,365
Europe
481,270
The Americas
640,879
(million yen)
Hardware
863,866
(million yen)
(million yen)
term Gros s National Happines s was
* The
proposed by the fourth King of Bhutan, who
considered it a more impor tant domestic
indicator than the Gross National Produc t
(GNP). Currently, leaders of many countries
are investigating the use of this index as an
important measure of real progress.
Transition of Gross Income (consolidated)
Transition of Net Income (consolidated)
Transition of Dividends (per share)
2005
2005
2005
2006
Our Response
Ms. Sonoda, who supports our CSR efforts, has provided us with valuable opinions on this year’s activities
and the content of our report. While still limited, our CSR efforts are gradually progressing and, as a global
company, we recognize our social responsibility and are trying to be even more effective as we move forward.
As a business that values making people happy, the goal for everyone in each of our group companies is to
continue working hard to put smiles on the faces of everyone Nintendo touches.
160,759
2006
288,839
2007
440,807
2007
2008
448,695
2008
2009
(FY)
364,324
(million yen)
2009
(FY)
98,378
2006
174,290
257,342
279,089
228,635
(million yen)
390
690
2007
1,260
2008
2009
(FY)
1,440
930
(yen)
Secretariat of CSR Promotion Project
47
48