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CSR
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| Corporate Social Responsibility of Leopalace 21 | |
As a member of society, we aim to progress together with our customers, shareholders, business partners, members of our local communities and our employees, as well as other various stakeholders, by responding to their expectations. It is for this reason that we are enhancing our corporate governance as a part of our corporate internal structure and nurturing personnel as our corporate social responsibility (CSR). Furthermore, in terms of corporate activities, we are contributing by providing social infrastructures that support various aspects of the lifestyles of consumers, while striving to develop and offer business models that provide corporate activities, which are, by their very nature, linked to the pursuit of CSR.
| Corporate Governance |
Director and Auditor Systems Our directors and auditors are currently organized based on the determination that our business performance can be further enhanced through appropriate and rapid decision making, responding dynamically to the changes within our business and our management environment. The Board of Directors, which is composed of 15 directors, holds regular meetings once a month, while extraordinary meetings are held at any time as required, in order for decisions to be made on critical management issues as well as to monitor the performance of business operations (at the present time no external directors have been appointed to the board). Furthermore, we have newly established a Management Committee, which is the progressive evolution of the Executive Committee (now dissolved), in order to hold monthly meetings to discuss issues relating to policies as well as the execution of business operations and to conduct evaluations on relevant strategies to be implemented. Four auditors are assigned, two of which are externally appointed. The auditors strive to enhance the effectiveness of the auditing by participating in the Board of Directors meetings and by conducting operational status investigations, based on an auditing plan that is prepared by the Board of Auditors (our firm has a business relationship, of small monetary value, with one external auditor). Three-headquarters System The corporate governance system was restructured with the establishment of the “Administrative Headquarters” and “Management Planning Headquarters” in June 2006, which together with the “Sales and Marketing General Headquarters” comprise the three-headquarters system. This is a triune system with the Sales and Marketing General Headquarters performing activities for the general management of sales and marketing, as in the past, aiming to enhance the corporate vitality; the Administrative Headquarters takes charge of corporate administration (governance) with the primary emphasis on compliance; and the Management Planning Headquarters takes charge of corporate governance and risk control for corporate vitality.  Securing governance that encompasses all companies of the corporate group In order to thoroughly implement corporate governance throughout the entire corporate group, the executive officer in charge of the Management Planning Headquarters of our firm is in charge of general management for the management of our firm as well as affiliated companies and promotes smooth exchanges of information and corporate group activities. Furthermore, executive officers in charge of operations at individual affiliated companies ensure the establishment of compliance systems and risk management systems that are in line with the implementation of strategies and the execution of efficient business operations based on the management plan. Compliance System, Risk Management System and Internal Auditing System  With regards to the compliance system, a corporate internal communication contact was established, due to the review of relevant rules and regulations and organizations, in order to enhance the existing system. The President has been appointed to be the Chairman of the Compliance Committee and corporate external committee members have also been recruited, thereby completely reforming the committee, which has now been incorporated into the Board of Directors as their consultative organization. Through such efforts we are aiming to establish a management system that is based on compliance as a part of our activities to enhance corporate governance. In order to proactively implement such strategies relating to compliance for the business operations of the respective businesses in the field, a person responsible for compliance has been appointed at the headquarters of each business and a person in charge of compliance has been appointed at each business location to comprise an organization of the system. With regards to the risk management system, the “Risk Management Committee” has been newly established with the executive officer in charge of the Management Planning Headquarters leading the organization as the Chairman, in order to keep track of and to manage risks relating to the overall group of companies in a comprehensive manner. This committee maintains and verifies the operational status of risk management regulations while planning and providing training for employees on the subject, as well as making quarterly reports on the status to the Board of Directors. Furthermore, the risk management status at an individual corporate organization is audited by the Internal Auditing Office, in conjunction with corporate auditors, the results of which are reported to the Board of Directors as well as to the Compliance Committee. The results are also fed back to the Administrative Headquarters in order to correct or to provide a foundation for the implementation of further strategies. With regards to the internal auditing system, the staffing of the Internal Auditing Office, which reports directly to the President, has been enhanced. The office is working to fully implement compliance and improve operations through financial auditing and operational auditing. The system is operating with the aforementioned organization in order to conduct risk management, stipulate codes of conduct, distribute case examples and hold awareness campaigns for the purpose of preventing the reoccurrence of incidents, as well as offer training aimed to increase awareness and a level of understanding on the subject. Disclosure of Information We are proactively disclosing information to our shareholders and investors, in order to secure transparency and objectivity in our management. In addition to speeding up announcements of financial statements and daily disclosures, providing through distribution over the internet, we will also be conducting aggressive investor relations activities through our timely distribution of news releases, holding financial accounting explanation meetings, issuing business reports intended for shareholders, issuing investor's guides (providing both Japanese and English versions) intended for investors, as well as implementing overseas investor relations activities that reflect the proportion of shares held by our foreign investors. |
| Business Models |
| Core Businesses and Strategic and Related Businesses We consider the Apartment Construction Subcontracting Business and the Leasing Business as our core businesses. We have established what we call a "Synergy Model", intended to simultaneously realize our objectives of "Effective Use of Land" and "Supply of High-Quality Dwellings". With these as our core businesses, we have been starting new businesses that reflect the environmental changes of recent years, to promote business models that are in line with the times. Environmental changes in recent years include (1) the conversion of real estate into current assets and financial products; (2) the progression of a declining birth-rate and an aging population, as well as the further diversification of lifestyles. In order to pursue highly social issues, such as the effective use of land, we responded to the current conditions, wherein the utilization of land is broadening, by starting a "Hotel Business" (a related business) early on, as well as entering into the real estate securitization business and starting a "Residential Business" using this securitization. Further, in response to the increasing elderly population, we also started a "Silver Business" that caters to this population by offering services ranging from nursing facilities to nursing care. We are raising our level of contribution to the social infrastructure by implementing a broad range of business activities that include a "Apartment Construction Subcontracting Business", "Leasing Business", "Hotel Business", "Residential Business" and a "Silver Business", which in turn offers a broad variety of land utilization. Further, the social infrastructure provided through these businesses includes rental housing, hotels, residential housing for allotment sales and nursing care facilities that service business persons in a broader range of age groups, travellers and even people in need of nursing care, in addition to the households of single persons in their twenties, who are catered to with our core businesses. Broadband Business We started our "Broadband Business" in the early stages, with our objective to "Create New Values" that respond to the progress of the Internet society and we are working to substantiate this business. We are providing the latest IT environment at all times by offering digital rental videos, communications satellite broadcasting, internet connection services and IP telephony services for the improvement of lifestyles, primarily for the tenants of rental apartment units that we manage, located throughout the country. A terminal (STB) for providing such broadband services was installed in approximately 65% (227 thousand units) of the residential units we manage, as of the end of March 2006. Since the market has evolved into a gigantic market catering to a large audience, the Broadband Business is currently considered to be a strategic business and we are currently further increasing the installation rate of the service in units managed by us and further broadening provisions of the service by implementing it in facilities for the elderly, utilizing it for recreational purposes (bringing out synergetic effects) and polarizing the external sales of systems to hotels and hospitals. Overseas Resort Business In 1993 we launched a large-scale resort facility in Guam and we are working to expand and substantiate the facility, as well as establish a business model. The launch of our resort facility in Guam, three and half hours from Japan, is intended to provide facilities and services that respond to the modern lifestyle in which overseas travel is a common phenomenon. Along with accommodation facilities, this location offers a full-scale integrated sports facility and a wedding chapel to respond to the demands for overseas weddings and overseas golf competitions. Along with individual travelers the location welcomes numerous guests from a diverse range including various tour groups, such as sports groups, school groups and company groups. The location serves numerous top athletes of various sporting groups representing professional baseball and professional soccer leagues in Japan and is also used as a camp training site for various Olympic teams in speed swimming, synchronized swimming and softball. Furthermore, the facility has been used by a large number of stakeholders of our firm, with 11.3% of 130 thousand rooms in operation during fiscal 2005 used by owners of apartment units managed by us, while 2.3% were used by shareholders of our firm. The Overseas Resort Business offers an "Abundance of Life" by providing a space for recreation and relaxation known as a "resort" to general customers, while aiming to contribute toward "Sports Promotions" by providing substantial facilities for athletes. Furthermore, we are also aiming to attain new heights in social contributions with considerations under way, which include the development of facilities for the elderly intended to provide long-term accommodation. Business Operations that are “Kind to both People and the Environment” We are engaging in business operations that emphasize the concept of being "Kind to both People and the Environment". For example, we are striving to implement facilities with consideration for the security and usability of the properties we lease, such as with card keys (starting from July 2001), intercoms with television monitors (starting with properties completed in October 2001), as well as delivery boxes (starting with properties completed in March 2002) (properties still exist for which these facilities have not yet been implemented). Further, we are also providing services for tenants that are intended to put them at ease in their daily lives, such as a "Residential Emergency Service" that provides an urgent response to plumbing related problems, as well as a "24 Hour Medical Consultation Service" that offers health-related consultations around the clock (both services offered toll free 0120-590080). Furthermore, we are thoroughly reconsidering our selection of internal decoration materials and installed furnishings for the properties we build in order to minimize the use of substances that are known to cause the sick house syndrome, such as formaldehyde. |
| Sports Promotions |
Click here for details about the Women's Softball Club.
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