MESSAGE

D&I Strategy

We contribute to the creation of an inclusive society
through our accumulated learning and knowledge
of D&I and the power of beauty.

Representative Director
Senior Executive Officer
Chief Marketing Officer
Chief D&I Officer

Yukari Suzuki

Diverse Professionals

Message from an Executive Officer

Value Creation Strategy
Diverse
Professionals

Our Approach to Diversity & Inclusion (D&I)

Diversity is the source of our value creation. We believe that an environment of respect for diverse values, one that empowers individuals to fulfill their potential, is indispensable for corporate growth. Since our founding, we have embraced a spirit of diversity to enhance our organizational capabilities and create value.

In particular, we have focused on promoting the empowerment of women, emphasizing that all employees should be able to build their careers exactly as they wish in accordance with their lifestyles and life stages. To support this initiative, we introduced a leadership development program for female employees called NEXT LEADERSHIP SESSION for WOMEN in 2017 and Speak Jam in 2020. As of January 2022, the ratio of women in leadership positions in Japan has improved by 12.2 points since 2017 to 37.3%, and for the Shiseido Group globally, to 58.3%.

Shiseido has received the Prime Ministerial Award for Women Empowering Companies 2020 to commend Leading Companies where Women Shine. On a global basis, WomenCorporateDirectors Foundation (WCD)—a network of female executives from companies around the world—selected Shiseido for the WCD Visionary Award for Leadership and Governance of a Public Company in recognition of our diversity in senior management and governance. These awards show that we are receiving external recognition for our efforts. However, there is still work to do.

Therefore, we position D&I as a key management strategy driving our efforts to create an inclusive society, which is the basis of our beauty business.

Toward an Inclusive Society

Together with the launch of our medium-to-long-term strategy, WIN 2023 and Beyond, we at Shiseido have been thinking about how best to contribute to society in order to realize our corporate mission, BEAUTY INNOVATIONS FOR A BETTER WORLD. A BETTER WORLD refers to a society where everyone can enjoy a lifetime of happiness. In other words, an inclusive society.

However, when we look at today’s society, we see challenges everywhere. Equal rights and exclusivity in terms of race, gender, nationality, sexual orientation, disability, age, and other attributes have become important themes worldwide. Moreover, these issues are of increasing concern to consumers, as shown by the recent Black Lives Matter movement and advocacy for the ending of child labor.

We have to admit that Japan still lags far behind in terms of diversity. In terms of the gender gap, which is a key measure of diversity, Japan ranks 120th in the Global Gender Gap Report 2021.

Therefore, we believe that Shiseido can contribute to the creation of an inclusive society through the learning and knowledge that we have cultivated and the power of beauty. Going forward, we will strengthen our activities not only within the company but also throughout society at large.

Strategic Direction

We have defined two pillars of our strategy in terms of contribution to society.

The first pillar is women’s empowerment. As I mentioned earlier, resolving the gender gap in Japanese companies is a matter of urgency. We believe that a solution to this issue will also contribute to Japanese society at large. Shiseido is committed to being at the forefront of creating opportunities for corporate and social reform and encouraging the acceleration of women’s empowerment. Our President and CEO, Masahiko Uotani, acts as chair of the 30% Club Japan, an initiative to increase the ratio of women among Japanese corporate board members.

Our global skincare and makeup luxury brand Clé de Peau Beauté entered into a global partnership with UNICEF since 2019. Through the three-year partnership, we are supporting UNICEF’s effort to empower girls globally through education and employment programs by contributing the world’s largest contribution of USD 8.7 million to support UNICEF’s Gender Equality Program.

A CRM (Cause Related Marketing) Campaign featuring the brand’s best-selling product, The Serum, is held every year globally, to invite consumer participation and raise awareness for UNICEF’s program. Additionally, Clé de Peau Beauté also launched a long-term philanthropic program, the Power of Radiance Awards, to honor inspirational women from around the world whose advocacy for women and girls’ education has led to positive long-term impact on lives.

The other pillar of our strategy is to use the power of beauty to improve inclusiveness. At Shiseido, we strive to empower everyone through the power of beauty. We believe that beauty comes in many forms and draws on different values. Shiseido’s vision for 2030 and beyond is to be a PERSONAL BEAUTY WELLNESS COMPANY. This concept is based on our desire to contribute to a lifetime of unique and healthy beauty for each and every one of our consumers.

We believe that the cosmetics and beauty business can play a significant role in the elimination of unconscious bias and we are committed to promoting an inclusive society through leveraging the influence and resonance of our brands.

Shiseido also works to expand Shiseido Life Quality Makeup to support anyone with deep skin concerns, such as scars, discolorations, and changes in appearance due to cancer treatment. We collaborate with other companies, medical institutions, organizations, and business partners in Japan to help people with these serious skin concerns so they can continue to feel their best and live their lives to the fullest. We have already launched these activities in China, Singapore, and Taiwan, and we intend to expand them to other countries and regions in the future.

Shiseido Life Quality Makeup
Participants in an online event for LAVENDER RING, a project to support people with cancer

Promotion of D&I at Shiseido

We cannot afford to cut corners with our internal D&I efforts, the bedrock of our contribution to society.

Through the promotion of D&I, we aim to foster an inclusive organizational culture that respects diverse professionals and different personalities, encourages open discussion and collaboration, and stimulates innovation. In addition to the development of various HR systems and training programs, we have developed an infrastructure that accommodates diverse work styles, shifted to a job-grade-based HR system, and implemented management reforms to ensure that the whole system works as it should. Several years have passed since the adoption of English as our official in-house language at our global headquarters in 2018 and the launch of Reverse Mentoring in 2017. We believe these initiatives have helped to cultivate an environment of respect among employees from different age groups and backgrounds.

At the same time, continuous support of women’s empowerment is a critical issue for Shiseido. It is important not only to have a working environment in which female employees can demonstrate their skills, but also to ensure gender balance in terms of decision-making. We continue various initiatives in recruitment, training, organizational development and are raising awareness towards our 50% target for the ratio of female leaders at all levels of the organization in Japan by 2030. We have made steady progress toward closing the gender gap in all areas and hierarchies through our support of autonomy in the career development of female employees. This is clear from the first-ever appointments of women to posts such as Regional CEO or Factory Director in Japan.

My Role as Chief D&I Officer

Uniformity and homogeneity hamper innovation in people and organizational culture. Naturally, unconscious bias is deep-rooted and difficult to eliminate, but people are inherently diverse, and at this point we should recognize that respect for diversity is a given. We believe that an inclusive society where everyone can demonstrate their capabilities will lead to a life of happiness.

Although I do not have an academic background in D&I or previous HR experience, my remit as Chief D&I Officer, which is concurrent with my role as Chief Marketing Officer, is to promote Diversity and Inclusion and the creation of social value through our core beauty business.

I believe I can contribute to a more inclusive society by addressing consumer needs through brand experiences with our products, in-store consultations, or other services. As Shiseido’s Chief D&I Officer, I am committed to harnessing the power of beauty to this end.

April 2022

Message from an Executive Officer

Value Creation Strategy