The MEDIA DO Group aims to continue to be a viable conglomerate even a century from now. The preservation and optimal use of natural capital is an important responsibility for the purpose of accomplishing this goal, as well as for reducing environmental impacts and preserving a pristine natural environment for future generations. The Group’s efforts do not stop at measuring and optimizing use of natural capital in its business activities; we also aspire to support the sustainability of our industry and operating environment through active involvement in the optimization of product mixes and resource use practices across the industry

• Creation of business opportunities by examining ideal mix of paper and electronic mediums across the publishing industry and promoting digital transformation
• Promotion of eBooks to grow business while contributing to effective use of paper and other resources and reductions in energy used in distribution

• Concern for industry depression due to potential increases in energy consumption and greenhouse gas emissions from returning and destroying physical books
• Increased costs for introducing and adopting renewable energy and damage to social reputation due to slow adoption

Sustainability for the MEDIA DO Group entails a concerted effort by all officers and employees to carry out their business activities based on a sense of responsibility and pride toward the contributions made by the Group’s businesses and services to the development of a healthy economy and the cultural advances stimulated by written works. We carry out our business activities based on the understanding that this approach is congruent with our mission and our vision while also being a driver of corporate value creation.

• Exercise of corporate philosophy and contributions to social development and intellectual creation
• Provision of social infrastructure through frameworks and systems deemed secure and reliable by creators, publishers, stores, users (readers), and other stakeholders
• Mutual development with stakeholders founded on trust-based relationships and improvements to MEDIA DO’s presence

• Impediments to social development and intellectual creation from declines in creative works and creators
• Reduction to competitiveness and earnings through accelerated industry decline and diminishment of MEDIA DO’s presence

MEDIA DO’s corporate creed states that “MEDIA DO will continue to grow so long as its people grow.” As indicated by this statement, we view human resources as indispensable to the ongoing growth of the Company. We therefore seek to create a workplace environment that draws out the growth and potential of our employees and that allows all employees to achieve independence and demonstrate their growth and potential as they take the initiative in tackling new challenges.

• Stabilization of management foundation through development of physically, mentally, and socially fulfilling workplace environment that contributes to human resource recruitment and retention
• Enhancement of human capital and improvement of productivity driven by acceptance and inclusion of diverse values and individuals

• Difficulty in recruiting and retaining human resources and instability of management foundation resulted from growing negative impacts associated with workplace environment
• Reduced service quality, customer success, and labor productivity due to human capital shortages

As described in its corporate creed, the MEDIA DO Group believes in the potential of its employees and aspires to create mutually beneficial win–win relationships with employees in which the growth and ambitions of employees drive the growth of the Group. To this end, training and evaluation systems are being improved and expanded to cultivate people who are adept at transforming change into opportunities with their innovativeness and at tying these opportunities to the creation of new ideas or solutions to issues via entrepreneurship.

• Improvement of organization resilience through cultivation of independent and autonomous human resources based on consideration of changing employment types and needs of consumers and other stakeholders
• Increased opportunities for innovation created by fostering entrepreneurial spirit and providing opportunities to exercise skills and grow

• Decreased resilience and weakened organization foundations as a result of lack of organizational flexibility
• Reduced competitiveness and earnings opportunities due to diminished capacity for innovation

We are keenly attuned to the relationship between society and the MEDIA DO Group as we seek to link the sustainability of society to the value created by the Group and to achieve improvements thereof. At the same time, we adopt a collective impact approach, reaching beyond the boundaries of the organization to partner with various stakeholders in order to generate a positive impact on society by addressing the issues faced by communities and society as a whole.

• Creation of positive collective impact through partnership with communities and associated stakeholders
• Increased trust from stakeholders and brand value achieved by contributing to resolution of community issues and to community development

• Fewer business opportunities and chances to create positive social impact
• Reduced trust from stakeholders, fewer supporters, and lower brand value following declines in opportunities for coordination and engagement with a wide range of stakeholders

The MEDIA DO Group takes a technology-first approach toward developing and supplying solutions to the issues faced by the industry and society as a whole. By embracing internal digital transformation, we seek to deliver products and services that are matched to the needs of our diverse stakeholders and their equally diverse values to become an entity that supports the digital transformation of the content industry.

• Increased competitiveness through diversification achieved by selecting optimal technologies for business/service needs
• Greater capacity to supply solutions by positioning in-house research and development of sophisticated technologies as opportunities for engineering growth

• Diminished competitiveness through lessened value or commodification of technological assets
• Reduced business opportunities and efficiency due to inability to use ideal technologies

The MEDIA DO Group’s mission is to provide the social infrastructure necessary for robust cultural development and thereby support sound digital distribution and a creation cycle for written works. The development of frameworks and systems that are deemed secure and reliable by creators, publishers, stores, users (readers), and other stakeholders is imperative to accomplishing this mission. We have therefore identified information security as an important management priority and are implementing measures to strengthen security on a Groupwide basis.

• Provision of frameworks and services that are deemed secure and reliable by creators, publishers, stores, users (readers), and other stakeholders
• Acquisition of trust from customers through faithful fulfillment of function as distribution infrastructure for written works

• Damage to reputation through information or data leakage
• Costs or loss of earnings opportunities due to service failures or other incidents

The MEDIA DO Group is committed to the maximization of its business value through efficient business operation and disciplined investment based on a consideration of cost of capital and profitability of used capital. In tandem with these investments, we are optimizing our business portfolio while diversifying our management and businesses in order to accomplish our goal of becoming a Publishing Platformer.

• Increased corporate value through management emphasizing cost and profitability of capital based on balance sheet
• Enhanced competitiveness by diversifying management while maintaining good financial balance through investment discipline and effective management resource allocation

• Decreased business value as a result of impairment of non-current assets or other adverse impacts on balance sheet
• Reduced corporate value due to lower growth potential

The MEDIA DO Group recognizes the following as important management issues to be addressed as its management grows increasingly more global: The improvement of management health and transparency through enhanced corporate governance to facilitate the further broadening of its business and the heightening of corporate value. To ensure impartial and highly effective management, the Group will continue to strengthen its corporate governance systems through such means as more effectively allocating resources and expediting decisions under the guidance of the Board of Directors.

• Realization of vision by reinforcing management foundation through ongoing pursuit of highly transparent and reliable corporate governance
• Increased trust from stakeholders

• Weakened management foundations, reduced business continuity, and lower corporate value due to insufficient governance functions
• Damage to reputation and corporate value

Entrenching corporate ethics and awareness of these principles throughout the Group will be imperative to improving the health and transparency of management. By fostering such awareness, the MEDIA DO Group aims to develop a corporate culture in which all internal institutions, officers, and employees make fair and accurate decisions. At the same time, we pledge to remain mindful of our social responsibility as a good corporate citizen in all of our business activities in order to maintain the trust of our various stakeholders.

• Fulfillment of responsibilities as good corporate citizen through legal compliance and honest business activities
• Increased trust from society earned through disciplined business activities

• Halts or delays to business activities due to insufficient compliance or legal violations
• Loss of social trust and damage to reputation and corporate value