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We Seek Win-Win Relations with Various Stakeholders.
We are continually developing win-win relationships with various stakeholders, including but not limited to shareholders, mass media, governments, NGOs/NPOs, and the general public. With our retailers we hope to seek mutual prosperity; with our suppliers we hope to sustain good relations by securing fair transactions. Moreover, to motivate employees even more the Corporation constantly improves its educational and welfare programs.

At Mizuno, we strive to develop our Corporation into a strong and constantly evolving organization by enhancing the value of each employee, regarding him/her as our essential human resource. Our basic personnel policies include [1] thorough implementation of the merit system, [2] skill-and-ability-based compensation system, and [3] fair employee evaluations and enhancement of their motivation. We believe that building employees' capacity and enhancing their value as human resources will benefit the Company in the long term

Mizuno has established various support programs for employees seeking an optimal work-life balance.
| Fiscal Year | 2007 | 2008 |
|---|---|---|
| Number of employees who took childcare leave | 15 Person | 10 Person |
| Number of employees who cut working hours due to childcare | 7 Person | 8 Person |
| Number of employees who took family care leave | 0 Person | 0 Person |
| Number of employees who cut working hours due to family care | 0 Person | 1 Person |
| Number of employees who took half-day paid holidays | 1,633day | 1,982 day |
| Per-day number of employees who took paid holidays | 6.3 day | 8.5 day |

At Mizuno, we have prepared a plan for the Support Program to Foster the Next Generation.
We have formed Safety and Hygiene Committees in all operations in Japan. At committee meetings, representatives from labor and management discuss measures to prevent labor accidents and illnesses, and to promote healthcare.
| Fiscal Year | 2006 | 2007 | 2008 |
|---|---|---|---|
| Accidents resulting in workers' absence | 3 cases | 1 cases | 3 cases |
| Accidents not resulting in workers' absence | 17 cases | 6 cases | 11 cases |
At Mizuno we recognize that appropriate mental healthcare is essential for leading a healthy and pleasant life, and that mental health conditions influence employees' business performance. Recognizing this, Mizuno provides mental health education primarily for managers. Moreover, we have developed consultation systems to help prevent mental diseases and offer remedies to those who are suffering.
| Cafeteria Plan System | Under the "Cafeteria Plan" system, employees can select from among diverse welfare menus within specified points. Mizuno pays part of the expenses incurred by respective welfare menus. |
|---|---|
| Special Holidays in Every Five-Year Service | After five years of service at Mizuno, all employees are provided with special holidays and a travel allowance. This system is designed to revitalize our employees every five years. |
| Use of Expired Paid Holiday Right | Employees who did not take paid holidays within specified periods can still take paid holidays even after the period is over in the following cases: illness/injury of employees, care of their ill family member(s), volunteer activities, sports activities, etc. |
| Employee Stock-Ownership Program | To support employees in building their own assets, Mizuno provides incentive money to the employees who autonomously purchase Mizuno's stocks on a regular basis. |
| Defined Contribution Pension Scheme (Japanese version of 401(k)) |
Fixed Contribution Pension Scheme Under this Pension Scheme, known as the Japanese 401(k), employees can invest funds provided by the Corporation in financial products that they themselves select. To enhance employees' awareness of CSR, Mizuno adopts social responsibility investment (SRI) funds as candidates of financial products. |
| Encouraging Club Activities | To inspire employees to improve their physical strength, mental energy and character, Mizuno encourages sports and cultural activities at respective workplaces. (Excerpted from the Mizuno Sports Club Code) |

In fiscal 2008, Mizuno's operations in Japan had the following sports/cultural clubs: baseball, cycling, soccer, skiing, softball, tennis, soft tennis, triathlon, basketball, badminton, volleyball, soft volleyball, boating, rugby, judo, athletics, golfing, and tea ceremony. (Not all operations have all the clubs listed above.)

In May 2008, Mizuno held a party to encourage Mizuno Track Club members all ready to participate in the Beijing Olympics. About 100 employees and their families gathered at the party to cheer on the Club's eight members, including Shingo Suetsugu. Inviting a performer from Yoshimoto Kogyo comedy company as the master of ceremonies, the party was very exciting and enjoyable. We believe that such parties provide participants with rare opportunities to meet Japan's star athletes, and are effective in developing many enthusiastic sports fans.

At Mizuno, we call our marketing staff engaged in wholesales "creators," since they are expected to "create" optimal solutions for customers. Under the "Creators of the Year" system, the Corporation honors marketing staff members with the best achievements. In fiscal 2008 five honored staff members were dispatched to the U.S. west coast and Atlanta, where they inspected sporting goods markets.

During summer 2008, ten offices/plants in Japan invited employees' children to visit. This open house event was designed to energize respective workplaces, reinforce employees familyties, and create future customers loyal to the Mizuno brand by showing our products and technologies. At the Head Office in Osaka, a total of 80 children and their parents listened to the story of Mizuno's founding, observed craftsmen manually producing baseball bats, and watched video letters from top athletes. In other establishments across Japan, children inspected plants, watched professional tools, and learned about their parents' workplaces.

This was the second time for my son to participate in this event. After the event, my son asked me to buy Mizuno's products and showed me Mizuno logo in newspapers and magazines. He told me that he joined the motion analysis testing for developing new product models. So he had marks still on his body that he kept on until bedtime. As part of the program he wrote a letter to me, which impressed me deeply. I'm really happy he was able to join the event.