Corporate Citizenship:

An Environmentally-Conscious Business
“Ricoh’s commitment to the environment is a model for other socially conscious corporations to follow.”1
– Fortune, August 2004

“Collectively, these accomplishments serve as a model for corporations to achieve success through sustainability. The
Jury believes this model will provide an excellent standard for the office landscape of the future and as an example for
other similar enterprises.”2

– Dr. Joel Abrams, Professor Emeritus of the University of Pittsburgh and Chairman
of the independent Gold Medal Jury, World Environment Center

“We believe that good corporate citizenship is good business…that you prefer to do business with companies you
respect”
– About “Ricoh and the Environment”

INTRODUCTION
Corporate Social Responsibility (CSR) and Corporate Citizenship3 gained prominence in Japan underlining the triple
bottom line of economic, social and environmental sustainability towards the end of the 20th century. The number of
companies with ISO 14001 certification, in Japan, rose from only 140 in 1996 to 5,075 in 2000, and to 13,819 by
December 2003. About 18 Japanese companies have joined the UN Global Compact by mid-2004; 21 companies
from Japan became part of the World Business Council for Sustainable Development (WBCSD); 66 Japanese
companies are among the Fortune’s World’s Most Admired Companies and 37 companies from Japan are listed on
the Dow Jones Sustainability Index. A survey conducted by the Japanese economic daily Nihon Keizai Shimbun,
revealed that, in Japan, 45% of the 1000 large companies surveyed, had started addressing CSR issues.4 Most of the
Japanese companies have laid particular emphasis on environmental protection. The companies such as Toyota,
Honda, Olympus, Brother Industries and Mori Building among others, have made environment a part of their core
business, availing it as an opportunity for enhancing their brand image and gaining competitive advantage.5 Through
the introduction of cleaner and greener technologies, recycling, waste management, reduction in pollution and CO2
emissions, the Japanese companies are leading the world in the sphere of environmental protection.

Ricoh Company Ltd (Ricoh), which is one such company, has embedded its environmental philosophy in its business
operations. Ricoh, the leading Tokyo-based manufacturer and supplier of office equipment including copiers, printers,
optical devices, and other electronic equipment, is one of the most admired companies of the world. Established in
1936, the company changed its present name, replacing its original name Rikken Kankoshi in 1963. Ricoh has 382
companies, including 131 companies in Japan and 251 overseas, employing around 73,200 people the world over. The
company maintained its growth even during the period of Japanese economic recession in the 1990s. The kind of
environmentalism followed by Ricoh, the company claims, is good not only for ecology but also for the company’s
bottom line. The company has set for itself a goal to become “a good global corporate citizen with reliability and
appeal.”6

ENVIRONMENT AND CITIZENSHIP

Ricoh believes that “good corporate citizenship is good business,”7 and integrates environmental ethics into its

____________________________
This case study was written by Kausiki Darbha, under the direction of M Srinath, IBSCDC. It is intended to be used as the basis for class discuss-
ion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.
© 2005, IBSCDC. Adapted and used with permission.
 
AN ENVIRONMENTALLY-CONSCIOUS BUSINESS
 
business activities. For more than 20 years since the 1980s, Ricoh has been leading the office automation industry in
creating environment-friendly products and processes, and building partnership between government, industry, and
environmental groups. Its environmental conservation thrives on the “Spirit of ‘Three Loves’ – Love your neighbor,
Love your country, Love your work.”8 Ricoh’s sustainability philosophy is encapsulated in its General Principles of
Environment and the “Three P’s Balance” – three P’s stand for Planet-Environmental protection, People-CSR, and
Profit-Business earnings (Exhibit I). The philosophy enunciates the triple bottom line – of social, economic and
environmental sustainability. Ricoh has embraced an environmental management program, and a code that states,
“Refuse, Return, Reuse, Reduce, and Recycle”, and a “Zero-Waste Policy”, all aiming at minimizing the wastage –
industrial or individual.

Ricoh was the second Japanese company to join the UN Global Compact in May 2002. The company set up a CSR
Division in January 2003. It also established a CSR Charter in November 2003, which is divided into four chapters:
integrity in corporate activities, harmony with the environment, respect for people and harmony with society. To
enforce the Charter, the Ricoh Group Code of Conduct was launched in January 2004; nearly 74,000 employees
around the world pledged to abide by the Code. Ricoh also entered the Dow Jones Sustainability Index9 in Sept 2004.

AS RICOH SWINGS INTO ACTION…

“Ricoh’s global concept is that business and environmental protection must move in parallel”10 stated Kazuo Togashi,
the chairman of Ricoh’s Group Sales Operations in Europe. Promoting recycling became partly Ricoh’s environment
philosophy and partly good business sense.

Ricoh’s recycling program is based on its “Comet Circle” concept, introduced in 1994. The Comet Circle aims at
realizing a sustainable society that recirculates the resources. Ricoh commits itself to this goal through five important
aspects of Comet Circle – reduction of environmental impact at all stages including designing, manufacturing,
transportation, and supplying; priority on Inner Loop Recycling;11 promotion of a Multi-tiered Recycling System;12
more Economically Rational Recycling and partnership at every stage – designing, manufacturing, and consumption
of recyclable products. An “all-employee participatory approach” is followed by Ricoh, which allows the employees
in all divisions to participate in environmental activities.

It was reported that all production sites in Japan achieved a 100% resource recovery rate, or a zero-waste-to-landfill
goal, by the end of fiscal 2001, and all production sites outside Japan achieved it by March 2002.13

Ricoh designed an environmental action plan for fiscal 2002 to fiscal 2004, which set several targets in energy
conservation, prevention of global warming, pollution control, resource conservation and recycling. The results for
fiscal 2003 reveal that the volume of lead, polyvinyl chloride, hexavalent chromium, and cadmium in the company’s
products were reduced.14 The number of reusable parts used increased 2.3 times over that used in fiscal 2000. In
Japan, Ricoh reduced the amount of carbon dioxide emissions by 29.1% per sales unit and 8.3% in terms of the total
amount emitted, compared to fiscal 1990.15 Further, the emissions of Ozone depleting substances were reduced by
80%. Also, the amounts of paper purchased, water consumed, and waste generated were reduced by 15.1%, 1.8%, and
6.8% respectively, compared to fiscal 2000. And, the rate of waste-recycling went up to 77.9%-97.5%.

In Japan, the company’s factory workers wear uniforms made from recycled plastic bottles. At one of its plants, a
recycling mall was set up where used coffee cups, paper bags, and other discarded items were dumped. From there
they were sent to recycling plants. “Every one in the company is involved in protecting the environment. This is our
proudest accomplishment,”16 said Misaims Sakurai, the company’s president.

Ricoh uses corporate “environmental accounting” as a tool to calculate the cost and effect (in quantity and monetary
value) of its environmental conservation activities, in accordance with the Environmental Accounting Guidelines of
Japan’s Ministry of Environment. It evaluates the costs and benefits of its environment-friendly business operations,
segment wise in terms of product energy conservation, product recycling, and pollution prevention at its sites.

“Employing Life Cycle Assessment, Environmental Accounting and other similar tools during product design and
manufacturing enables us see the costs and benefits of our recycling and zero-waste activities in the context of our
overall operations,”17 says Kazuo Togashi, the chairman of Ricoh’s Group Sales Operations in Europe.
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AN ENVIRONMENTALLY-CONSCIOUS BUSINESS
 

GAINING RECOGNITION
Ricoh gained recognition for its environment-friendly operations, both in and outside Japan, in the 1990s. Ricoh UK
Products Ltd received the Queen’s Award for Environmental Achievement, in 1993, and the Highly Recommended
prize in European Better Environment Awards, for chlorofluorocarbon-free recycling system, in May 1994. It
received the top award from Japan’s Minister for Environmental Trade and Industry, for environmental activities,
product assessment, and recyclable design, in 1995. In December 1998, Ricoh was accorded the first place in the
second annual Environmental Management Survey by Japan’s top business daily, Nihon Keizai Shimbun. The next
year, Ricoh Corporation in the United States secured the Energy Star Award from the Environmental Protection
Agency, which it continued to win consecutively for five years till 2000.

In 2001, Ricoh received Minister of Economy Trade and Industry Award for the advanced environmental friendliness
of the Imagio Neo 350 series machines. In 2002, Ricoh’s multifunctional “imagio Neo 220/270 Series” received the
Energy Conservation Center Chairman’s Prize for energy conservation.18 It also achieved the Grand Prize at the 12th
Global Environment Awards, in recognition of its global leadership in environmental conservation activities such as
Zero Waste to Landfill, prevention of global warming, and social contribution, as well as its endeavors to improve
environmental awareness.

Ricoh won the 2003 World Environment Center Gold Medal for International Corporate Achievement in Sustainable
Development for demonstrating “preeminent leadership in sustainable development” in its operations through “world
class energy efficiency technology, reduction of global climate-warming emissions, zero-waste to landfill in
production, green suppliers pipeline, and a cutting edge environmental management system.”19

According to Dr. Joel Abrams, Professor Emeritus of the University of Pittsburgh and chairman of the independent
Gold Medal Jury, “Collectively, these accomplishments serve as a model for corporations to achieve success through
sustainability. The Jury believes this model will provide an excellent standard for the office landscape of the future
and as an example for other similar enterprises.” Fortune states, “Ricoh’s commitment to the environment is a model
for other socially conscious corporations to follow.”20

Ricoh acknowledges three stages21 in the promotion of environmentally-conscious business, and finds itself in the third
stage – “Value Creation” – where it works to realize both environmental protection and economic profits. For achieving
its vision of being world’s leading product engineering company in the 21st century, Ricoh recognizes that it has to
achieve more corporate value and sustainable development, while strengthening the relationship of trust between all
stakeholders – including its employees, consumers and the rest of the society. Ricoh’s CEO, Sakurai, states;
“Companies can continue an activity only if they themselves survive, grow, and develop. We therefore need to gain
new economic values through environmental conservation activities,” He further says that Ricoh “takes it upon itself as
a global citizen to conduct environmental conservation activities on a continuous basis,”22 even as it intends “to
radically expand over the next five years.”23 While Ricoh is looking for greener pastures, the world watches Ricoh.

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AN ENVIRONMENTALLY-CONSCIOUS BUSINESS
 

Exhibit I
Ricoh’s Sustainability Philosophy and the Triple Bottom Line
Ricoh General Principles on the Environment
Ricoh introduced the Ricoh General Principles on the Environment, which are based on its management philosophy,
in 1992 and revised them in 1998. These principles show Ricoh’s commitment to sustainable environmental
management and are widely disclosed to the public through various media, including web sites. Based on these
principles, Ricoh Group companies have independently established and managed their own rules regarding the
environment according to their business type.

Basic Policy
Based on our management principles, we recognize environmental conservation as one of the most important missions
given to mankind, and we regard environmental conservation as an integral element in all our business activities. We,
therefore, assume responsibility for environmental conservation and approach this on a companywide basis.

Action Guideline
1. Not only do we comply with all domestic and overseas environmental regulations, but we also set our own targets
to reduce stress on the environment in consideration of social expectations, and we endeavor to attain our targets.

2. We strive to promote technological innovation while at the same time maintaining and improving our
environmental conservation systems.

3. In development, design and operation of factory facilities, we always consider their impact on the environment, and
we strive to prevent pollution, to utilize energy and resources effectively, and to reduce and dispose of waste products
in a responsible manner.

4. At every stage, from planning, development, design, procurement and production to sales, logistics, use, recycling
and disposal, we offer products and services which have minimal environmental impact and give maximum
consideration to safety.

5. Through environmental education, we strive to raise awareness of all our employees in order to develop a social
viewpoint that enables them to conduct environmental activities under their own responsibility.

6. In every country and region where we conduct our business, we maintain close ties with the local communities and
we contribute to society by publicizing our activities and assisting environmental conservation activities.

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1 “Leading the Green Revolution”, Fortune, August 2nd 2004
2 “Ricoh to Receive 2003 World Environment Center Gold Medal for International Corporate Achievement in
Sustainable Development”, World Environment Center – Review, www.wec.org, February 2003
3 Corporate citizenship is about the contribution a company makes to society through its core business activities, its

social investment and philanthropy programs, and its engagement in public policy.
4 Smith Lee, “Asia’s Steward”, Fortune, August 2nd 2004
5 Darbha Kausiki, “Japan Inc: Corporate Social Responsibility Initiatives”, (Case Study), Icfai Business School Case

Development Centre, October 27th 2004

6 Corporate Social Responsibility Report 2004, www.ricoh.com
7 Ricoh’s Management Philosophy
8 Ricoh’s Corporate Philosophy
9 Launched in 1999, the Dow Jones Sustainability Indexes are the first global indexes tracking the financial

performance of the leading sustainability-driven companies worldwide, managing risks deriving from economic,

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AN ENVIRONMENTALLY-CONSCIOUS BUSINESS
 
                                                        
environmental and social developments.
10 “Environmental marketing secures lead for Ricoh”, www.ricoh.fr/Ricoh/images.nsf
11 The Ricoh Group puts priority on reducing, reusing and recycling in the inner loops of the Comet Circle, aiming at

minimizing the resources and energy costs needed to return the used products to their highest economic value.
12 Repeated recycling which reduces new resource consumption and waste generation.
13 “From Environmental Conservation To Sustainable Management Ricoh Company Ltd.”,

www.unglobalcompact.org
14 “Fiscal 2002-2004 Environmental Action Plan and Fiscal 2003 Result”, www. ricoh.com
15 “Fiscal 2002-2004 Environmental Action Plan and Fiscal 2003 Result”, op.cit.
16 “Leading the Green Revolution”, op. cit.
17 “Environmental marketing secures lead for Ricoh”, op.cit.
18 “Global Information (2002 News)”, www.ricoh.com
19 “Ricoh to Receive 2003 World Environment Center Gold Medal for International Corporate Achievement in

Sustainable Development”, op.cit.

20 “Leading the Green Revolution”, op. cit.
21 The first stage is a “Passive stage where a company is required to meet the legal targets; the second stage, a

“Voluntary stage”, where a company tries to reduce the environmental burden and the third and final stage, of
“Value Creation”, where both environmental and economic benefits are sought.
22 “Message From the President”, www.ricoh.com
23 “Leading the Green Revolution”, op. cit.

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