ºÚÁÏÍø

ºÚÁÏÍø's Corporate Concept is "to give first thought to patients and people in the daily living domain, and to increase the benefits that health care provides." Under this Concept (also known as human health care (hhc) Concept), we aim to effectively achieve social good in the form of relieving anxiety over health and reducing health disparities. “Maximizing Human Capital” has been identified as an important materiality toward the realization of this mission. ºÚÁÏÍø regards its employees as the exclusive stakeholders that can directly contribute to the realization of our hhc concept through the creation of innovations, positioning them as invaluable assets we call “human talent”.

 To efficiently achieve social good, we believe that it is important that the concept of “efficiency” in our human resource strategy encompasses not only cost-effectiveness and the utilization of new technologies for operational efficiency, but also having an environment in which excellent talents who want to solve social issues can come together and maximize their respective values, as well as fostering a corporate culture where diverse talents with various perspectives can thrive.

Furthermore, as human capital management continues to garner increasing attention, approaches to maximize the value of talent are becoming more important instead of the traditional HR viewpoint of managing, nurturing, and evaluating. We believe that disclosing the Key Performance Indicators (KPIs) for achieving our human resource strategy and continually working towards improvements will contribute to efficiently realizing social good in the future.

ºÚÁÏÍø made a partial amendment to the Articles of Incorporation at an Ordinary General Meeting of Shareholders in 2022, adding “respecting human rights and diversity”, “providing full opportunities for growth to support self-fulfillment”, and “creating an employee-friendly environment” to “Ensuring stable employment”, which was previously stipulated. The “Integrated HR Strategy” is thus composed of four quadrants: “health,” “workstyles,” “growth,” and “business/organization,” each of which is organically aligned with each other to continuously pursue a better corporate image. We believe that if ºÚÁÏÍø’s employees are healthy and able to pursue the optimal work processes, our performance will be maximized through accelerated talent development with employees’ activities such as proactive exploration of in-depth knowledge, leading to an exponential growth of our business and organization”.

The six types of capital that comprise ºÚÁÏÍø’s corporate value

＊Please refer to page 65 of the ºÚÁÏÍø Value Creation Report 2023 for details on the quantification of the value of non-financial capital

Employee Impact Accounting takes the total salary amount of ºÚÁÏÍø as its starting point and adjusts for factors such as the "quality of wages" (marginal utility based on annual income, gender pay gap), "employee opportunities" (gender disparities in promotions and salary increases), " diversity" (gender ratio in the workforce of Japan and ºÚÁÏÍø), and "contribution to the local community" (multiplied by the difference between the local unemployment rate and ºÚÁÏÍø's employee base, and the gap between ºÚÁÏÍø's average annual salary and safety nets such as unemployment insurance and public assistance). This calculation yields a measure of social impact. In the fiscal year 2019 it was estimated that a value of 26.9 billion yen was generated (see table* below).

Furthermore, the results for the fiscal year 2019 suggest that diversity is an area of concern. Through investments in human capital, efforts toward diversity, and other initiatives, our company continues to strive for the improvement of societal impact visualized through Employee Impact Accounting.