Sustainability Report2008-2010Sustainability snapshotCover image Pat HoulihanRiver at dawn Kris Prokopowicz To date all of our recycling programs combined have successfully divert 3534 tonnes of wastefrom landll. Our result of 3836.1 tonnes of CO2e means we will have no mandatory reporting obligations in the foreseeable future. We will continue to independently conduct GHG assessments of our operations and actively seek to reduce emissions in line with global targets. Through a new video conferencing facility, Ricoh is saving $40,000 a year in travel costs, including airfares, car hire, taxis and accommodation. It is also reducing our carbon emissions. Staff are encouraged to participate in CSR activities which has led to a sharp increase in staff participation across the business from 350 volunteer hours in 2007 to 440 in 2009. Sunnyeld residents and staff joined us on Clean Up Australia Day, providing our staff an opportunity to meet and spend time with these incredible individuals and an opportunity for Sunnyeld clients to participate meaningfully in the community. Our community involvement program was recognised by the Ricoh Group, when we were awarded the Corporate Social Responsibility Best Practice Hikarimono Recognition award in 2008 and 2009. In 2009, the award was extended to include our Work Placement Program. A survey conducted by Research International on customer satisfaction found that out of 700 businesses surveyed, Ricohs satisfaction level is above the market average in the top three important drivers of satisfaction. Over 560 primary school students have undertaken the Earthkeepers earth education program, helping them to undertake a lifelong behavioural change to reduce their environmental impact.About our report 1Message from the Managing Director 3AA Who are we? 5A1 Part of a global corporation 5Ricoh Australia 5Ricoh Australias Executive Team 6Structure and governance 8Our framework for doing business 9Our business strategy 10Managing risk 13Recognition as a sustainable organisation 14A2 Our values and commitments 15Our mission 15Our values 15Our environmental vision and mission 15Our commitments 17Our climate change commitments 17How we ensure our legal and ethical behaviour 18How we comply with relevant laws and regulations 19BB How are we performing against our priorities? 20B1 How do we help customers print and manage documents for less? 20Whats the issue? 20What are we doing about it? 20Consulting and suggesting better solutions 20Green products and smart software 22Future plans 22B2 How do we provide reliable products and services to our customers? 24Whats the issue? 24What are we doing about it? 24Making sure our products are reliable 24Ensuring efcient customer service 24Future plans 24Call to action! 24B3 How are we acting on climate change? 25What is the issue? 25What are we doing about it? 26Future plans 26Call to action! 26B4 How are we harmonising with the environment? 27What is the issue? 27What are we doing about it? 27Product design 27Strategic sourcing 27Manufacturing 27Transportation 27ContentsContents continuedBB4 How are we harmonising with the environment? continuedBetter product use 28Recycling 28In the workplace 28Future plans 28Call to action! 28B5 How do we contribute positively to society? 29Whats the issue? 29What we are doing about it? 29Future plans 31Call to action! 31B6 How do we ensure Ricoh is a great place to work? 32Whats the issue? 32What are we doing about it? 32Our Space intranet 32Kaizen program 34OH&S programs 34Community initiatives 34Future plans 34B7 Performance snapshot 35CC What are our programs and achievements? 38C1 How do we help customers embed sustainability and cut printing costs? 38Better product use benets customers triple bottom line 38@Remote Green Reports 38Green Calculator 38Case study: Printing securely at Hawthorn Football Club 42C2 How are we providing reliable products and services to our customers? 43Ricoh highly ranked in customer satisfaction survey 43Technical service network 47Service quality index scores 47How well our technicians performed 48Case study: Helping technicians locate machines faster 50Customer service from branch to international level 51Global knowledge management system 51C3 How are we harmonising with the environment? 52How are we implementing our environmental leadership strategy? 52How we are reducing our environmental impact and encouraging others to act? 53How do our recycling programs approach our zero-waste-to-landll goal? 54Recycling in-house 55How are we cutting our greenhouse gas emissions? 56Case study: Video conferencing cuts travel costs 57Contents continuedCC4 How are we contributing to the community? 58Sponsoring Sunnyeld 58Volunteering at Arranounbai School 59Contributing to education in sustainability 60Sustainable Schools Art Competition 61Raising employees environmental awareness 61Eco Action Day 61Clean Up Australia Day 62C5 How do we ensure Ricoh is a great place to work? 64How do we measure our employee engagement? 64How do we act on our technician benchmarking survey? 65How do we promote performance excellence? 66How do Kaizen teams improve our workplace? 67Kaizen teams formed in the reporting period 67Case study: Garden composting solution from Team Midori 68Talent Manager program 69Learning and development 69Staff training results 69Business compliance training 69Technicians eld service training 71Technical development plan 71Occupational health and safety 72Customers occupational health and safety 72Industry benchmarking 72Why? Whilst the Ricoh Group publishes sustainability reports covering the entire groups environmental and corporate social responsibility performance, we feel its important to report to our customers, staff and other stakeholders how Ricoh Australia aims to achieve continuous improvement across economic, environmental and social boundaries. ScopeThis report covers the performance of Ricoh Australia from 2008 through to 2010 in the wider context of sustainability. That is, how we contribute to the improvement of economic, environmental and social conditions, in the local community as well as regionally and globally.The content includes Ricohs organisational strategy, customer relationship strategy, workforce plans, environmental and CSR plans and actions, management systems and its approach to continuous improvement.Information in this report is current as of September 2010.AudienceThe audiences for this report include sustainability experts and practitioners, government and non-government organisations, Ricoh customers, employees and potential employees. Other audiences include local community groups, students, suppliers, and sustainability reporters.About our report Structure of reportOur report is divided into three main sections:Sustainability report structureSection PurposeAWe present:Ricoh structure and governanceRicoh mission, values and ethicsManagement for excellenceEnvironmental leadership statementB Identies priorities and gives a snapshotof key achievements: We raise six key issues and identify the actions we have taken to address themto date plus our future plans. They are:Helping our customers manage andprint documents for lessProviding reliable products andservicesAddressing climate changeHarmonising with the environmentDeveloping our social and environmental contributionImproving the Ricoh workplace We give a snapshot of data that we believe is critical to support our claimsCWe present more detailed informationon specic programs and give somemore data to show what wehave achieved17ApproachThis report was compiled by members of the Business Excellence Team, with input provided by Ricoh staffand management.Many of the photographs used in this report were taken by Ricoh employees, and have been attributed accordingly.Balance This report provides a balanced representation of the sustainability and corporate social responsibility performance of Ricoh Australia. It includes both positive and negative results. Assurance and vericationAll the data and information in this report has beeninternally veried. 2About our report continuedExternal verication of Ricoh Australias CO2 consumption was obtained in 2008 where Ricoh Australia engaged Carbon Planet to undertake an assessment of the Greenhouse Gas (GHG) Emissions from our entire operation. This review was in line with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard and the international standard ISO 14064-1.Disclosure methodThe Ricoh Australia Sustainability Report 2008-10 is available online and in PDF format. You can download the PDF version of Sustainability Report 2008-10 from the Ricoh Australia website www.ricoh.com.au ContactFor further information or to comment on this report please contact Pam Merlo at pmerlo@ricoh.com.auMany of the photographs used in this report were taken by Ricoh employees3Message from theManaging Director It is my pleasure to present this sustainability report which provides an unfettered window into the sustainability activities of our organisation and hopefully demonstrates our passion for people, planet and performance. The past few years have seen unprecedented change. Events such as the global nancial crisis, the swine u pandemic, the Copenhagen Accord, and the eruption of a little known Icelandic volcano have served to highlight the complex, interconnected world in which we all live. For me, these events have underlined the need to build sustainable practices into the heart of our operation. At times like these, the call to contribute to struggling communities and to nd better ways to safeguard our environment must not give way to a single focus on economic recovery.At the same time, these global events have highlighted the need for organisations to operate more efciently and mindfully. We continually work within ourselves as an organisation and with our customers to develop ways touse less CO2, waste, cost and complexity.At Ricoh we made a deliberate decision to not only continue our sustainability programs, but to invest in them during these turbulent times. I am pleased to report that over the two-year period, we invested $2.1 million in environmental management and corporate social responsibility projects (an increase of 32 percent), whilst simultaneously growing our business by $49 million in a market which contracted by 20 percent.As the ninth largest global IT organisation, we are also on track to realise our vision of reducing our environmental footprint collectively to one-eighth of our year 2000 levelby 2050.Looking forward our sustainability mission is clear: Use less, no waste. This mission is driven through strategy and sustainable economics, though centred on empowering individuals to act to deliver immediate positive change.We will leverage our Kaizen continuous improvement program to constantly explore our own workplace behaviours and practices and nd ways of eliminating all forms of waste to maximise our commitment to people, planet and performance.This Sustainability Report is written and produced by Ricoh employees. I hope you nd the content of the report informative and useful in judging for yourself how well we walk the talk.Les Richardson, Managing DirectorAt Ricoh we made a deliberate decision to not only continue our sustainability programs, but to invest in them during these turbulent times...4Ricoh Australia has 551 staff. Our corporate headquarters are located at Frenchs Forest in Sydney and we have branch ofces in all state capitals.Reection of Sydney Harbour Bridge Bryan Dalli5A. Who are we?A1 Part of a global corporationRicoh Australia is part of the Ricoh Group, a global leader in tailoring sophisticated ofce solutions. Ricoh Co. Ltd was established by Kiyoshi Ichimura in February 1936, producing the worlds rstmass-produced twin-lens reex camera in 1950.Today, the company operates in ve regions around the globe (Americas, Europe, Asia Pacic, China and Japan) with 272 consolidated subsidiaries together employing around 108,525 people.We believe that environmental, social and economic objectives need to be balanced to ensure sustainable growth. Ricoh is committed to making meaningful contributions to the creation of a sustainable society.Ricoh AustraliaOur core business includes the sale, distribution, service and technical support for multifunction and stand alone printers. In addition we provided managed printing services and develop business solutions software for optimising customer utilisastion of our products.Ricoh Australia has 551 staff. Our corporate headquarters are located at Frenchs Forest in Sydney and we have branch ofces in all state capitals. In addition, we have a dealer network and service agents to provide sales, service and support in major metropolitan and regional areas.EnvironmentEconomicCorporatesocialresponsibility6Ricoh Australias Executive Team General Manager OperationsRobi George National HR ManagerKim Reade Finance DirectorPeter Bennell National Technical ManagerPhil ShamblerActing Chief Information OfficerLes RichardsonGeneral Manager Marketing and Product ManagementPhilip Henry Director Sales and Marketing StrategyHide Takamura Director of SalesMark Ewington General Manager Business Solutionsand ProductionKathy Wilson Managing DirectorLes Richardson A. Who are we? continuedRed and Green Macaw Bree KrauseWe believe that environmental,social and economic objectives needto be balanced to ensure sustainable growth. Ricoh is committed to making meaningful contributions to the creationof a sustainable society. 78Structure and governanceRicoh Australia Pty Ltd is a wholly owned subsidiary of Ricoh Asia Pacic, the regional head ofce for the Asia-Pacic region. The reporting structure, locations, and governance purposes are below. Ricoh Australias structureSets 3 year plansfor all regionsConsolidates budgetsand consolidated reportsRicoh Asia Pacific SingaporeRicoh AustraliaSets regionalmid-term plan objectivesReports toApproves Ricoh Australiasmid-term plan and objectivesApproves Ricoh Australiasannual plan and objectivesReviews Ricoh Australiasperformance againstmid-term and annual plansSets regionalmid-term plan and objectivesApproves Ricoh Australiasannual plan and objectivesReports monthlyagainst planWorks within Australianregulatory environmentSets organisation mission,vision and valuesReports toRicoh Co. Ltd JapanA. Who are we? continued9Our framework for doing businessRicoh Australia is guided by the values of customer service, achievement, performance, encouragement and being responsible. Our Vision, Mission and Values statement was formulated in 2008, with the input of the senior management and staff. It provides us with a framework for doing business. In addition, our CSR Charter and Code of Conduct sets out the social and business ethics we use to conduct our business, and our environmental leadership strategy focuses our resources and expertise. Communicating our vision, mission, values, Code of Conduct and environmental leadership strategy are a key part of orientation for new employees. We use the Plan Do Check Act (PDCA) cycle to promote continuous improvement and performance excellence at strategic, tactical and operational levels. PDCA is a well established method for continuous improvement practiced by leading organisations worldwide. At the heart of each PDCA are the ideas of our talented staff. Our annual Performance Excellence report measures the overall performance of the company.Strategic performance excellenceWe use the Baldrige Perfomance Excellence criteria to drive continuous improvement through the strategy development and deployment cycle. Opportunities for improvement identied during the self-assessment act as inputs into the strategy planning sessions and cascade down through the strategy deployment approach.Tactical performance excellenceWe established the Ricoh Program Management ofcein 2007 to help manage major tactical projects. Ricoh Program Management uses the principles of PRINCE2 to provide a consistent approach to project management, including planning and prioritisation, risk management, resource management and exception handling.Operational performance excellenceWe introduced a Kaizen program to encourage andassist staff to practice continuous improvement on a daily basis. Kaizen represents continuous improvement and 60+ years evidence of positive and measurable impact to organisations, their staff and customers. Engaging in Kaizen indicates this has a signicant role to play in todays competitive and global business market. Our staff are trained on the principles of Kaizen and organised into virtual teams that constantly examine all processes in an effort to identify and eliminate all forms of waste and deliver better value and benets to our customers. All of our staff are actively encouraged to submit ideas for improvement with the best idea being recognised and rewarded by our Managing Director each month. A. Who are we? continuedKaizen is a very simple concept,formed from two Japanese characters: Kai meaning change+Zen meaning good10Our business strategyEvery three years Ricoh Group develops a Mid-Term Plan (MTP), which denes the companys global strategy. This is cascaded down to Ricoh Australia and drives the creation of our MTP. We are currently using the 16th MTP, which spans April 2008 to March 2011.The cornerstone of Ricohs strategic developmentprocess is an understanding of our strengths and weaknesses (SWOT), the voice of our customers (VOC) and our core competencies.This understanding is then used to distil our strategic challenges and the corresponding objectives, goals, measures and performance indicators.The corporate business plan is then used to capture the detail, and cascade down to an array of divisional business plans. These in turn form the basis for managing the performance and key performance indicators of individual staff.We have identied nine key processes in how Ricoh Australia does business:Product Launch and Pricing ControlMarketing and Opportunity ManagementStock Forecasting to Receipt of GoodsCustomer Ordering to InstallationFinance Application to Contract AcceptanceFinance Lease Receivables Invoicing and CollectionsCustomer Invoicing & CollectionsCustomer Service Request to ResolutionProduct StewardshipEach of these key processes has one or more goals. For example, for the Product Stewardship process, one goal is to maximise RAP recycling and another is to increase participation in CSR activities.Our key business processes are the focus of annual Discovery audits performed by the Business Excellence Division. They use these audits to map value stream processes, collect relevant metrics, investigate strengths and weaknesses as well as compliance to the integrated management systems.How we measure ourselvesOur management systems are pivotal in the management of our corporate governance, work practice knowledge, handling of customer complaints and the standardisation and reengineering of business processes.Quality Management System and Environment Management SystemOur integrated management system was recertied in 2007 and upgraded to the latest version of ISO 9001 in 2009.Information Security Management System (ISMS)Our Information Security Management System was formally certied to ISO 27001 in 2007 as part of Ricohs global certication program.Baldrige Performance Management SystemIn 2008, Ricoh Australia adopted the Baldrige framework, an internationally recognised framework for performance excellence. We believe this approach provides us a structured method to measure our performance againstbest practice and to identify gaps in our performance against a blueprint for high performance businesses. We established various teams to cover the Baldrige categories and as a result have redened our Mission, Vision and Values.A. Who are we? continuedOur key business processes are the focus of annual Discovery audits performed by the Business Excellence Division. They use these audits to map value stream processes, collect relevant metrics, investigate strengths and weaknesses as well as compliance to the integrated management systems.11We established various teams to cover the Baldrige categories and as a result have redened our mission, vision and values.Surf Lifeboat Team Natalie Hulford12Research and developmentThe Ricoh Group has four primary research and development focus areas are:Printing: we develop technologies for multifunction devices and printers that maintain high quality, reliability and efcient output.Ofce solutions: we develop technologies to promote knowledge management and encourage innovation in todays digital ofce environment.Imaging/Devices: we integrate technologies such as optical/image processing and electronic devices to create unique technologies with new value.Environment: We contribute to a sustainable society by developing technologies that minimise the environmental impacts of our products at every stage of life cycle.We have invested a signicant proportion of research and development in internal technology innovation. The Ricoh Institute of Sustainability and Business, which was established in Japan, will focus its research on four key areas: economy; environment, resources and energy; social structure and industry and businesses.This focus is consistent with our strategy of building major in-house development capability and retaining intellectual capital in Australia. Some examples of projects that were developed in the reporting period:Sales order processing (SOP): We designed a streamlined sales order processing and tracking system and an associated online order entry system that would facilitate online ordering and improve processing to fulllment and billing.ESA TransFormer: We designed and developed embedded software architecture-based products to enhance the capability and business process integration of Ricohs multifunction devices (MFDs).Salesforce.com customer relationship management system: We developed a single central repository for all customer information including presales, sales, post-sales and service.OfficesolutionsEnvironmentImaging/DevicesPrintingA. Who are we? continued13Managing riskRicoh operates a Total Risk Management system which provides a rigorous structure around the identication, analysis and prioritisation of risks. The concept of Total Risk Management provides for the alignment of all strategic and operational risk disciplines into a single management structure which ensures appropriate normalisation of risk classication and consistency in risk treatment.Ricoh Australias Total Risk Management approach isbased on and complies with the AS/NZS ISO 31000Risk Management standard and has been in operationsince 2007.The scope of Total Risk Management covers all strategic and operational risk areas that Ricoh Australia is naturally exposed to. This includes the management of risk relating to quality, the environment, information security, product compliance, occupational health and safety, business continuity, internal change management, customer complaints and major customer implementation projects.How Ricoh Australia proactively manages threats and risks Threat or risk Impact CountermeasurePollution and wasteHarm to environment and community Product Compliance (Blue Angel, European Union Restriction of Hazardous Substances [RoHS] )Environmental Management SystemMachine RecyclingToner Cartridge RecyclingParts RecyclingTrade Waste RecyclingSpecic customer complaints Company reputation and poor customer outcomeComplaint Management SystemDangerous or hazardous productDanger to community Restricted Electrician Licensing of techniciansElectro Magnetic Interface complianceTelecommunications complianceProduct Safety Incident ProcessUnsafe work practiceHarm or deathPolicies on OH&S Compliance IT and vehicle usage and mobile phone policies Employee unaware of correct practiceMisrepresentation to customer resulting in litigationConditions of Employment Code of ConductTalent Manager ReviewWritten policies & proceduresUnplanned adverse business event affecting service deliveryDisruption to business continuityCompliance with industry/legal standardsIT Disaster RecoveryInsuranceDistributed Buffer Inventory Family Group / Dealership NetworkInformation Security Management SystemRegulatory non-compliance Fine, penalty and potentialbrand damageSOX AuditAnti money laundering registrationand complianceDisclosure of private informationHarm or embarrassment to individualFine, penalty and potential brand damage The Company Secretary has been appointed our Privacy Ofcer and our employees sign a Privacy Statement on entry.Information Security Management SystemPandemic Unavailability of staff Response proceduresPersonal Protective EquipmentA. Who are we? continued14Recognition as a sustainable organisationRicoh is ranked as one of the Global 100 Most Sustainable Corporations in the World. We have been listed every year since the lists inception in 2005. The Global 100 is an annual project initiated by Corporate Knights. The aim of the list is to highlight the global corporations which have been most proactive in managing environmental, social and governance issues. Long before caring for the environment became a focus for most organisations, we began to examine our business through an environmental lens and embed environmental strategies as part of our core focus.AwardsThe numerous international awards Ricoh and Ricoh products have received are testament to our environmental achievements and distinguished legacy in providing outstanding products.Awards won by Ricoh in 2008 and 2009 Date Award Awarded byAugust 2008 Received the Pick of the Year award in three categories printers, multifunctional printers (MFPs) and solutions.Buyers Laboratory Inc. (BLI)August December 2008 The Ricoh Group ranked No. 1 in customer satisfaction (business users) in the 2008 Customer Satisfaction Study in two categories: colour copier/multifunctional copiers 1,and monochrome laser printers 2J.D. Power Asia Pacic, Inc.January 2009 Received the Pick of the Year award in the multifunctional printer categoryBuyers Laboratory Inc. (BLI)January 2009 Selected as one of the Global 100 Most Sustainable Corporations in the World for the fth consecutive yearCorporate Knights Inc.March 2009 Won the Excellence Awards at the 12th Environmental Communication Awards The Japanese Ministry of the Environmentand the Global Environmental ForumApril 2009 Selected as one of the Worlds 99 Most Ethical Companies for the rst timeEthisphere InstituteApril 2009 The Ricoh Group was given theGrand Prize in the 12th Green Reporting AwardToyo Keizai Inc.April 2009 The Ricoh Group was given the Third Prize in the 12th Sustainability Reporting AwardToyo Keizai Inc.April 2009 Ricoh Europe receives the European Business Awards Ruban DHonneurEuropean Business AwardsDecember 2009 Ricoh MP 6001 MFP recognised witha 5 star Exceptional awardBERTL, Inc.A. Who are we? continued15A2 Our values and commitmentsRicoh Australias vision, mission, values and commitments were created by our executive management team in consultation with staff and provides a framework for how we do business. They guide our business decisions and strategies ensuring we stay focussed on our objectives whilst remaining true to the values that have shaped our organisation.Our missionWe work closely with our customers to create innovative, unique and tailored solutions that truly deliver business efciencies to support their knowledge management. Our solutions simplify the life and work of our customers, allowing them to focus on their own business priorities.Working together, we minimise our impact on the environment and take a leading role in contributing constructively to the needs of society whilst providing enrichment for our business partners, employees and shareholders.Our valuesCustomer service Understanding the needs,wants and expectations of all customers (internal and external) and working intelligently to not only meet, but exceed their expectations and leave them with a feelingof delight.Achievement Team work throughout the organisation working together towards agreed goals (a win/ win attitude).Performance Completing every task correctly therst time and in a superior manner and always lookingfor better ways of working that is, working oncontinuous improvement.Encouragement Helping each other to be great (a supportive attitude). Acceptance of change andgenuine concern for others that is, empoweringour people.Responsibility Taking ownership of our roleas individuals in protecting the environment and supporting the needs of others.A. Who are we? continuedWe will achieve zero wasteif every single employeetakes personal responsibilityin their workplace forreducing consumption ofnatural resources...Fig tree Botanic Gardens Diego PereiraOur environmental vision and missionOur ultimate goal is to reduce our environmental footprintto one eighth of our year 2000 level by 2050. To achieve this end we formulated our environmental vision, mission and targets.Our environmental vision: Use less, no wasteOur Environmental Mission: We will achieve zero waste if every single employee takes personal responsibility in their workplace for reducing consumption of natural resources and thereby reducing emissions, reusing materials to extend their useful life and recycling materials to prevent disposal to landll.We will constantly explore our own workplace behaviours and practices as well as those of our colleagues, suppliers, partners and customers and use our inuence and insight to assist them to do the same.Our mission is urgent, driven through strategy and sustainable economics, though centred around individual action to deliver immediate positive changeSustainability and business outcomes: Drawing from the questions we are asked in requests for tender it is obvious that social and environmental factors are being incorporated into decision making by more and more organisations. Whilst it is difcult to draw a direct link from our corporate social responsibility activities and our sales success, we believe that a strong link exists. We know from feedback from our employees that they are enriched by our programs and feel proud to work for an organisation with values aligned to their own.16Our ultimate goal is to reduce our environmental footprint to one eighth of our year 2000 level by 2050. To achieve this end we formulated our environmental vision, mission and targets. 17 Jennifer BlackwellOur commitmentsWe make the following commitments in order to realiseour mission and values. Our aim is to strengthen Ricohs long-term business while contributing to the well-beingof our staff, communities and the environment.We will help our customers print and manage documents for less cost, less CO2, less waste and less complexity. This means we will:Leverage our skills and expertise in document management;Create solutions for our customers which allow them to achieve measurable savings in $ spent, environmental impact, efciency and complexity.We will act against climate change. This means we will:Strive to reduce total CO2 emissions by 30 percent from scal 2000 levels in 2020;Strive to reduce resource use by 25 percentfrom scal 2007 levels in 2020.We will harmonise with the environment. This means we will:Expand our efforts in our recycling programs to ensure efcient use of resources through the increase in re-use of parts;Promote reductions in energy usage by all areas ofour operation;Promote activities to conserve the ecosystem.We will contribute positively to society. This means we will:Expand our efforts to provide opportunities for people living with a disability;Expand our support of education for sustainability amongst Australias youth;Continue to support communities in need;Continually raise awareness amongst our staff of theirrole in creating a sustainable future.We will ensure Ricoh is a great place to work.This means we will:Create a workplace which is safe, healthy, diverse, stimulating and rewarding;Promote autonomy and creativity in the workplace;Provide the leadership, tools, resources and opportunities for our staff to achieve their full potential;Promote a vital and motivated culture withinthe organisation.Our climate change commitmentsRicoh became the second Japanese company to sign the UN Global Compact (GC) in April 2002. In June 2007, Ricoh also became a signatory to Caring for Climate: The Business Leadership Platform by GC.The Ricoh Group is committed to the Poznari Communique, which was announced at the 14th Conference of the Parties (COP 14) of the United Nations Framework Convention on Climate Change held in Poznari, Poland in December 2008. A. Who are we? continued Natalie Hulford Jerry Randall18A. Who are we? continuedAll Ricoh employees complete an introductory and annual on-line training program to ensure they are compliant withvarious legislation and standards. In 2008 training in the Anti-Money Laundering standard was introduced for our Finance department staff. See page 69Legal and ethical behaviour controls Process DescriptionCode of Conduct The CSR Code of Conduct is our statement of commitment to stakeholders.Recruitment The HR Manager vets all internal/external recruitment advertising to ensure compliance with Code of Conduct, Equal Employment Opportunity Act (EEO) and other relevant legislation.Senior Leaders and/or the HR Manager are involved in the selection of employees. Candidate application forms ensure legal and medical disclosures and entitlementto work.HR Manager/Senior Leaders select authorised recruitment suppliers. All employees undergo screening to check references.All employees and promotions into high trust roles (e.g. accountant) undergo high trust screening which examines their propensity to defraud.Induction Every new employee is provided with a personalised and structured induction program which includes the Vision Mission and Values statements of the company.Induction checklist requires new employees to fully understand and agree to the Code of Conduct.New employees complete compliance training. New employees are given information security awareness training and face to face OH&S induction by an OH&S ofcer. Employee information Employees have access to review their personnel les on request.Occupational Health & Safety Employees are made aware when employment is offered that OH&S is also their personal responsibility.Ricoh has a smoke-free workplace policy and drug and alcohol policy in place.Ricoh has appointed and trained safety personnel for all sites; OH&S reps, Fire Wardens, First Aid ofcers and conducts regular building evacuation training.First Aid kits maintained and made aware to staff.Emergency procedures for pandemic response are in place.Grievance handling Ricohs Grievance Handling Policy addresses the action that an employee can take if they have a grievance about any decision, behaviour, act or omission whether by management or other staff that an employee feels is unfair, discriminatory or unjustied.Physical and environmental securityRicohs premises are regularly assessed for physical and environmental security risk exposure and the controls appropriate to risk prole are implemented and operational.Senior executives rolemodellingSenior leaders are personally involved in environmental and community activities and events.How we ensure our legal and ethical behaviour19A. Who are we? continuedCompliance with legal and regulatory environment Domain Laws or regulationsCode of Conduct The CSR Code of Conduct is our statement of commitment to stakeholders.Company Relevant state and federal laws of AustraliaCorporate lawTrade Practices ActContract lawIntellectual propertyPrivacyEmployer Occupational health and safetyIndustrial Relations ActElectrical licensing of techniciansSuperannuationAnti-discrimination lawsFinancial InsuranceCredit collection practicesPayrollRecord managementAccounting practicesProduct Product Compliance:C Tick for EMI1 complianceA Tick for modules such as faxes that are connected to atelecommunications line Standards ISO 27001 Information Security Management systemISO 9001 Quality Management systemISO 14001 Environment Management system1 Electro Magnetic InterferenceHow we comply with relevant laws and regulationsRicoh Australia complies to all relevant industry, state and Commonwealth laws, regulations and standards of best practice. Some of these laws and regulations are outlined in the table below.20B.How are we performing against our priorities? B1 How do we help customers print and manage documents for less?Whats the issue?Many organisations are faced with the problem of tryingto manage the increasing cost and complexity of theirprint and document management solutions and the expectation they must do so in a socially and environmentally responsible manner.What are we doing about it?Ricoh helps our customers print and manage their documents with:Less costLess CO2Less wasteLess complexityWe have achieved this by unifying our collective experience in the provision of world-class products, services and solutions and combining these to tackle challenges faced by our customers. This is combined with our accumulated knowledge derived, from more than 30 years of environmental management. We are able to transfer this knowledge to benet our customers triple bottom line. Consulting and suggesting better solutionsOne way in which we are actively assisting our customers print and manage documents for less is through our consultative approach. Our Ofce Consulting Analysts begin the process by conducting a detailed assessment of the current state of our customers document output environment. This entails identifying the companys eet information and security requirements, discovering any infrastructure or document bottlenecks and their associated impacts whilst understanding the intent and objectives of any existing print policy. Using our Total Green Ofce Solution approach we provide our customers a current state baseline of the environmental impact, providing metrics such as total energy consumption, total paper consumption and their associated CO2 emissions. By providing our customers with a full and complete As Is picture they are able to see the total cost of ownership and any hidden costs. Ricoh helps our customers printand manage their documents with: Less cost Less CO2 Less waste Less complexityUsing our Total Green Ofce Solution approach we provide our customers a current state baseline of the environmental impact, providing metrics such as total energy consumption, total paper consumption and their associated CO2 emissions.21Bryan Dalli22Green products and smart softwareAll Ricoh models are Energy Star rated and their environmental benets include energy saving modes and paper-saving duplex printing mode. Our products are manufactured from materials that are non-toxic. Around 98 percent of all materials used in our devices can be recycled and we recycle 98 percent of the material directed into our toner cartridge recycling program. A total of 3,239 machines, including peripherals were recycled between April 2008 and March 2010. See page 55 Our range of software helps customers reduce waste by simplifying existing business process workow and reducing the volume of paper consumed.One software solution, @Remote, helps many of our customers automatically read meters, order replacement toner, receive device support information and create detailed activity reports for all their devices. As another example, Ricohs Green Calculator allows customers to compare the estimated energy consumption of their current devices with that of proposed new devices. The Green Calculator generates device specic data from typical electricity consumption (TEC) values. Future plansEnhance Ricohs Green Calculator to show actual energy consumption instead of TEC values, which will provide a more powerful reporting tool for helping customers to achieve both TCO and CO2 reduction.Work towards providing detailed reporting to accountfor recycled Ricoh machines and consumables collected from our customers and recycled through use of our recycling program.Call to action! Even the simplest changes can provide improvements in business workow and outcomes. For example, set duplex as your default preference for all your ofce printers and copiers. By printing on both sides of a sheet youll reduce paper usage by as much as 50 percent. Multi-copy and print can cut paper consumption down even further by printing two pages on the same side, therefore printing four pages onto one piece of paper. B.How are we performing against our priorities? continuedAround 98 percent of all materials used in our devices can be recycled. A total of 3239 machines, including peripherals, were recycled between April 2008 and March 2010. 2324Call to action!Continuous improvement through thePlan-Do-Check-Act cycle is a proven method for lowering costs and achieving operational excellence. When people share good ideas, the organisation and its customers can reap the rewards.B2 How do we provide reliable products and services to our customers?Whats the issue?Our customers need and expect us to deliver reliable document management products and services. As Ricoh products and solutions are inserted into critical business workows, the impact of product downtime continues to increase in signicance. Consequently, service level agreements around response times in the industry are constantly tightening.What are we doing about it?Listening to what customers wantRicoh runs a Voice of Customer program to listen to and gain an understanding of the current and future requirements of our customers. Understanding what reliability means to our customers enables us to continuously improve our products, services and solutions in lockstep with their requirements.Making sure our products are reliableGlobally, Ricoh invests heavily in research and development because continuous improvement is core to our companys culture. We are at the forefront of developing fundamental technologies for product design and production techniques which contribute to high-quality product manufacturing and the continuous growth of the Ricoh group.Ensuring efcient customer serviceWe use a multi-layered approach to customer service to underpin our promise of total reliability. Good customer service starts with our branch Customer Training Representatives and continues through an Online Service Centre, National Contact Centre and National Technical Support. If necessary, issues can be referred to the Regional Support Centre in Singapore or the Global Support Centre in Japan.Each layer of service is continuously improved to ensure it remains world-class and delivers on our promise of reliability. A customer satisfaction survey by Research International of 700 Ricoh customers and its main competitors found: Ricoh users are extremely satised with technical support and it is the area in which Ricoh has the highest score.In 38 percent of cases, it took less than an hour for Ricoh technical support to resolve an issueRicoh ranked rst among competitors in the product and services areas. See page 44 Technical service results compiled by Ricoh showthat we:Improved technician rst-time x rates from 84.4 percent in 2007 to 88.6 percent in 2009, bringing us close to our goal of 90 percent. Customer rst call resolution improved from 8.6 percentin 2007 to 15 percent in 2009. See page 48Future plansReview online service centre procedures to make it easier for the correct technician to attend a call and x the problem the rst time. Provide an improved maintenance kit of parts for technicians. Currently technicians have to select from multiple parts with different serial numbers. In future, all parts will be placed in one kit, with a single serial number, enabling technicians to nd parts more quickly. Implement new ITIL-based (Information Technology Infrastructure Library standard) service desk that improves case management by linking each case to a particular customers account records. This will allow cases to be visible throughout Ricoh. Migrate the Complaints Management System to Salesforce.com to make the complaints management system more visible to account managers and more responsive and accountable to the needs of customers.Reengineer future process mapping so that wecan improve business processes that add value toour customers. Improve monitoring of business processes by applying key performance indicators (KPIs) to each process and measuring performance.B.How are we performing against our priorities? continued25Spreading the word aboutclimate changeRicoh provided our exclusive Lets Do Lunch event in 2009 as a forum for The Australian Conservation Foundation (ACF) to deliver its latest Climate Project message. Randall Pearce, an Al Gore Climate Messenger, presented an updated climate change message, Our Choice, a follow up to An Inconvenient Truth. More than 400 people, representing hundreds of major organisations in Australia, experienced his thought-provoking presentation and the call to take action individually and collectively. In addition, we asked representatives who attended the opportunity to host a Climate Project presentation B3 How are we acting on climate change?B.How are we performing against our priorities? continuedRobi GeorgeHuman activity is causing the climate to change.James Lyonsfor staff at their own organisation. Ricoh Australia offered to cover the travel cost of the Climate Messenger to such events. Each guest at Lets Do Lunch received a copy ofOur Choice when it was released in Australia in November 2009.Pam Merlo, Ricohs Environmental Manager arranged for Pearce to present An Inconvenient Truth to Ricoh executive and middle managers on World Environment Day 5 June 2008 to spearhead discussions about the need to evaluate the actions Ricoh could take to reduce our carbon footprint.What is the issue?Climate change is now widely accepted to be one of the most serious risks facing the planet. It affects everyone individuals, businesses and governments and collectively we need to work together to solve the problem.Human activity is causing the climate to change. It is difcult to precisely predict what the impacts of climate change will be, as they vary with each region of Australia. Best estimates are that by 2030 Australia will face:Temperature increases of 1-2C.Up to 20 percent more months of drought.Up to 25 percent increase in days of very high or extreme re danger.Increases in storm surges and severe weather events.The Carbon Disclosure Project Report 2009 Australia & New Zealand reveals that Australian and New Zealand companies, more than any other country, are recognising their susceptibility to the physical impacts from climate change.26What are we doing about it?Our environmental leadership strategy focuses on our tools, resources and expertise in three areas:1Reducing the environmental impact of our operations.See page 53 2Helping our customers reduce the environmental impact in their ofce environment. See page 383Helping employees to act by providing education, products and services that reduce environmental impacts. The following is a snapshot of some of our achievementsin addressing climate change.We engaged Carbon Planet to perform a comprehensive assessment of the greenhouse gas (GHG) emissions for which our organisation was accountable in 2008.We deployed a video conferencing solution into our existing network with video conferencing units in standard meeting rooms at head ofce, the veregional branches and our Printing Innovation Centre, limiting travel required by Ricoh staff, reducing environmental impact.We formed an Environmental Strategy Team, ledby Les Richardson, Managing Director, providinga top-down approach to strategy formulation.We formed a Kaizen team to look at ways of implementing small changes to the way we workwhich will reduce our environmental impact forminga bottom-up approach.We purchased diesel vans and crew cabs for ourservice technicians resulting in reduced emissions from fuel usage.We launched Our Space, our new company intranet, in March 2010. The Environment Ofce uses Our Space to inuence behavioural change in terms of reducing our environmental footprint at work and at home. This can be seen in the use of regular blogs, news items and educational articles.We launched the Ideas Drop Box through Our Space,where staff can put forward their ideas on how to reduce their environmental impact.See section C3 for more on our environmental performance. Future plansRoll out a staff awareness campaign on climatechange using ACFs Climate Messengers.Expand the number of diesel vehicles in our service eet.Publish our carbon footprint via dashboards onOur Space.Call to action!It is up to each of us to take action against climate change. Every action counts, and when multiplied nationally becomes exponential in its impact. If you want to know more about what you can do personally to reduce your carbon footprint, use World Wildlife Funds Footprint Calculator wwf.org.au/footprint/. B.How are we performing against our priorities? continuedWe formed an Environmental Strategy Team, led byLes Richardson, Managing Director, providing atop-down approach to strategy formulation.27B4 How are we harmonising with the environment?B.How are we performing against our priorities? continuedWhat is the issue?Ricoh is deeply passionate about contributing to our planet and to the people of Australia through reliable and high integrity programs that are focussed on providing meaningful and positive outcomes.Our aim is simple: Use less. No waste.Sustainable environmental management is at the core of our efforts to harmonise with the environment.Climate change, the depletion and price volatility of natural resources and the increasing need to ensure our products meet stringent environmental regulations are the driving forces behind Ricohs global environmental measures to improve environmental impact reduction. What are we doing about it?We base our sustainable environmental managementon three pillars:energy conservation and the preventionof global warmingresource conservation and recyclingpollution prevention.Product designWe use Life Cycle Analysis (LCA) to identify the environmental impact of our products.By developing environmental technologies, we can assist our customers in reducing the environmental impact from their business activities. See page 53 Strategic sourcingWe strictly manage environmentally-sensitive substances within our products to reduce their impact on the global environment and enhance end-user comfort and safety levels.We have introduced environmental, social and governance aspects into our key requests for tender. ManufacturingWe are working towards low carbon manufacturing through innovation of the production process.Resource depletion is increasingly becoming a reality. Making products smaller and lighter whilst reusing and recycling used parts is one way we reduce our reliance on virgin resources.We have developed new colour PxP Toner which is designed to fuse at lower temperatures, resulting in lower energy consumption when in use. TransportationWe have achieved a reduction in the environmental impact of our logistics, by shipping products directly to our Perth distribution centre (where previously they would rst come to our head ofce warehouse) for delivery to customers and dealers in Western Australia.We continue to reduce our fuel consumption and emissions from our vehicle eet through the purchase of diesel vehicles for use by our service technicians with plans to expand this program. Through the use of reverse logistics for our service parts recycling program we are achieving productivity and environmental gains.We have signicantly reduced our business travel through the introduction of video conferencing. See page 57 Bryan Dalli28Better product useWe have trained our entire service team on our Green Service module, to ensure all products are set to default duplex and eco power mode at run-up. We offer our customers performance reporting through our @RemoteTM Intelligent Management System, which tracks a variety of environmental metrics related to how much energy and paper each Ricoh device uses and the associated emissions. Customers view web-based real-time reports.See page 38 RecyclingWe recognise our responsibility for our products throughout their life cycle from sourcing raw materials, through production, distribution, sales and servicing and on to collection and recycling at the end of their life.Ten years prior to the introduction of the proposed National IT/TV e-Waste Recycling Program, Ricoh introduced free programs designed for our customers to recycle their Ricoh machines and consumables once they have reached the end of their life.We have rened our Machine Recycling Program over its nine years of operation to achieve an increase in the resource recovery ratio from 70 percent to 98 percent. The integration of our machine, consumables and parts recycling programs offers great potential for further expansion of our environmental initiatives. See page 54In the workplace The following initiatives have been undertaken to promote sustainability in the way we work:We commissioned Carbon Planet to conduct aLevel 1 Energy Audit of our head ofce locatedin Frenchs Forest, NSW.We have adopted the 5 Rs philosophy: reduce, refuse, reuse, return or recycle.We have expanded our in-house trade waste recycling programs to include soft plastics such as plastic bags and shrink wrap. We have also introduced organic waste and compost bins in line with our No Waste aim.We have begun to measure our waste-to-landll in order to set a baseline for improvement. Future plansCommunicate our environmental strategy and policyto all staff members.Appoint Kaizen Midori sustainable ambassadors throughout the organisation. They will mentor others to become more sustainable both at work and at home by empowering staff to re-think and re-act.Set Key Performance Indicators for departments/branches to reduce paper and energy consumption.Publish a leader board of departments and branches that have signicantly reduced their environmental footprint.Continue to use Our Space to educate and empower Ricoh staff to act to reduce their environmental footprint, to be done through regular blogs, news articles and videos.Call to action!Become a conscious consumer by incorporating social and environmental factors into your decision making. Adopt the 5 Rs. You can learn more at the Australian Conservation Foundation GreenHome Challenge www.acfonline.org.au B.How are we performing against our priorities? continued1Reduce2Refuse3Reuse4Return5Recycle29B5 How do we contribute positively to society?Whats the issue?In Australia today, there are over 4.7 million people who are in some way affected by a serious or debilitating disability. Sadly, the trend in these gures is increasing.We believe we have a role to play by helping to create opportunities for people with disabilities.Another issue we are passionate about is educating and empowering the next generation on the pathto sustainability.The issue for us is how to develop programs which tackle the challenges these groups face. We also want to encourage the involvement of our staff to ensure these programs are sustainable over the long term and then embed them in the way we conduct our daily business.What we are doing about it? Supporting people who have disabilitiesRicoh has been a long-term corporate partner of Sunnyeld, a professional and caring NSW-based organisation that supports people who have a disability. Our support is not merely philanthropic. We support Sunnyeld in a number of ways. We contracted Sunnyeld Enterprises to handle the inventory control, and distribution of our marketing collateral on a national basis.In early 2010, we engaged their services to handle the inventory control, packing and distribution of starter kits and their replenishment for our Consumables Recycling program.We offer Sunnyeld many pro bono services, such as the design and printing of their marketing material.Over the past 14 years Ricoh has contributed $990,000to Sunnyelds Independence Fund. See page 58We have expanded our staff volunteer program at Arranounbai School, a special needs school. We offered work placement positions to two of the senior students who were studying for their Higher School Certicate.See page 59 In 2008 and again in 2009 our volunteer program was awarded the CSR Best Practice Hikarimono Recognitionby the Ricoh Group. See page 59Arranounbai volunteer program Ricohs Financial Controller, Mike Sekulich was the inspiration behind the Ricoh staff volunteer program at Arranounbai School. This is a special needs school, catering for children from pre-school to year 12 with physical disabilities or medical conditions. Mike began volunteering at Arranounbai during his lunchtime in 2007 and as a regular volunteer he experienced personally the impact of spending time with these very special children. Wishing to pay it forward Mike approached Pam Merlo, Ricohs Quality and Environment Manager to determine how to build an employee volunteer program which catered for the needs of the students and staff at the school. The program was established in conjunction with Arranounbai School.Building up from our core group of a dozen volunteers, we now have more than 30 volunteers who regularly assist at the school during their lunchtime. The program has been an overwhelming success for all involved. The students have gained condence, self-esteem and have been challenged to become involved in group activities which extend their ne, gross motor and communication skills. Volunteers have experienced personal growth by giving back to community and knowing that their involvement has made a difference in the lives of these children.B.How are we performing against our priorities? continuedJin and Mel Arranounbai School I have gained increased awareness of disabled issues, a strong sense of contribution tothe communityand it is fun working with the kids! Ben ThompsonBusiness Process Analyst3031B.How are we performing against our priorities? continuedCall to action!People living with disabilities have been excluded, forgotten and ignored in the past. They want the things everyone else in the community takes for granted somewhere to live, a job, better health care, a good education and a chance to participate meaningfully in the community. We can be part of the solution. To learn more about disability and issues faced by disabled people, their families and carers and what you can do to help change this,read SHUT OUT. Sunnyeld volunteerswww.fahcsia.gov.au/sa/disability/pubs/policy/Documents/NDS_report_easy_english.pdf Volunteering at Clean Up Australia DayWe invited Sunnyeld staff and residents to join us on Clean Up Australia Day 2009. The occasion provided us an opportunity to socialise and interact with Sunnyeld residents on a one-on-one basis, providing an insight into the lives and interests of these very special individuals.See page 62 Educating and empowering childrenin sustainabilityWe have continued to support earth education in Australian schools, through the sponsorship of the Earthkeepers program. By reconnecting children with the natural environment, we help them to learn that our environmentis fragile and that everyone has a responsibility to take actions which lessen their impact on the environmenton a daily basis. See page 60 We have continued our Sustainable Schools ArtCompetition, based on the theme Our earth,Our tomorrow. The competition gives studentsan opportunity to see their environmental concepts used in a large creative format and feel empowered through expressing their message. See page 61Future plansEstablish staff volunteer programs in our branchesContinue to work with Sunnyeld on a Community Engagement program which will provide Ricoh staff the opportunity to meet and spend time with some ofthe incredible individuals they support and that thecentre employsExpand our Sustainable School Art Competition nationallyEncourage our customers to participate in our corporate social responsibility programsExpand our support of EarthkeepersTM into otherstates of AustraliaEstablish a national Tree Planting Program32B.How are we performing against our priorities? continuedB6 How do we ensure Ricoh is a great place to work?Whats the issue?A fundamental issue for Ricoh Australia is how we gain, train, and retain productive and knowledgeable staff.This issue cannot be divorced from:A tight employment market as Australia emerges from the Global Financial Crisis.The convergence of our technology with the IT market.The tyranny of distance, as Ricoh supplies and services every Australian state and territory.Changing generational motivational drivers. For example, the need to belong to an organisation and a belief in working smart, not hard.What are we doing about it?These are some of the mechanisms Ricoh has used to identify or resolve key factors that affect workforce engagement: Talent Manager:Ricoh has integrated employees training development plans and salary reviews directly with the Talent Manager Performance System. See page69 Ricoh Workplace Survey:A Ricoh Workplace Survey was conducted in 2009with the results benchmarked to external workplaces. A Net Promoter Score2 was applied that provided the percentage of people who are empowered and committed to change. See page 64 Technician Engagement Survey:In 2008 Ricoh surveyed its technicians to identify gaps in the perceived importance and effectiveness of various elements that impacted the workforce. See page 65Our Space intranet In March 2010, Ricoh Australia introduced its new corporate Intranet, Our Space. The aim was to achieve better intranet patronage amongst staff and improve communication and content ownership, as well as to provide a single knowledge repository.Our Space includes an Ideas Drop Box, news items, blogs, processes, policies, project- related activity and performance measures. The How To (procedures) are written in wiki format, allowing staff to add, edit or comment on them. This allows for better collaboration and more up-to-date procedures.The Our Performance section incorporates graphs and descriptions of each performance measure in the balanced scorecard. The graphs are designed to illustrate:Actual performance: Where we are right now.Goal: Where we want to be.Historical comparison: Where we were at this pointthe previous year.Trend: Where we are likely to nish up in the current year.2 A Net Promoter Score measures the number of advocates (those who would recommend) compared to the number of detractors(those who would not recommend) a brand or service.In March 2010, Ricoh Australia introducedits new corporate Intranet, Our Space. The aim was to achieve better intranet patronage amongst staff and improve communication and content ownership, as well as to provide a single knowledge repository. 33Lavender elds - Tasmania Diego Pereira34Kaizen programOur Kaizen program encourages and assists staff to practice continuous improvement on a daily basis and promotes operational performance excellence. Approximately 25 percent of Ricoh Australia staff received Kaizen training by FY 2009-10. Under the program, staff are trained in the principles of Kaizen and organised into virtual teams that constantly look for ways to improve business processes across the company and eliminate unnecessary waste of time as well as resources.All Ricoh, employees are actively encouraged to submit ideas for improvement. The Managing Director recognises and rewards the best completed suggestion each month.Occupation Health and Safety (OH&S) programsRicoh Australia recognises the need for each of its employees to be provided with a safe and healthy workplace environment. The companys policy is to make every reasonable effort to prevent accidents, protect people from injury and promote the health, safety and welfare of allits employees.Community initiativesRicoh Australia supports several community-based initiatives including Arranounbai school initiative; Sunnyeld a NSW-based organisation that supports people who have a disability; EarthkeepersTM an environmental education program for primary and high schools; and Eco Action Day (Melbourne Branch). We also support sporting activities such as the City-to-Surf Fun Run (Sydney), and City-to-Bay Run (Adelaide Branch). Future plansDouble the percentage of staff trained in Kaizen fromthe current 25 percent to 50 percent by 2010-11.Benchmark Kaizen with other Ricoh companies suchas Ricoh New Zealand and Ricoh Hong Kong as wellas comparable companies in the same industry.Form several new Kaizen teams, including a Knowledge and Training team and supplement this with additional Kaizen training. See page 67 Implement an extensive mentoring program to equip managers with the skills required to effectively communicate to their staff how the organisations goals can be aligned with each employees priorities,KRAs and performance. Use Talent Manager, our online performance measurement program, to allow for divisional and personal mission statements.Launch an extensive series of rede2learn (our online education resource) desktop and business skills coursesin June 2010 with snapshot versions provided for the time-poor. See page 69 Provide additional development and training programs. See page 69 Our goal is to have a welcoming, inclusive workplace that staff will nd rewarding and fullling. Each of us has a role to play to ensure this goal is realised. B.How are we performing against our priorities? continued35B.How are we performing against our priorities? continuedB7 Performance snapshotThis table is a snapshot of some of our key results indicators.Key results indicators Key results indicators Performance Target 2009 2008 2007 2006Providing reliable products and services First time x Service Calls90% 88% 88% 87% 84%Machine uptime95% 99.6% 99.6% 99.6% 99.5%Average service call toresponse time 4 hours 2.7 2.6 3.4 2.8Service Quality Index0.52 .31 .4Not measuredNot measuredCustomer retention100% 95% 96% 89%Not measuredContinuous improvement Projects raisedNot set 11 6 3 N/AProjects completedNot set 12 N/AStaff IdeasNot set 551 27 14 6Acting on climate change C02 emissions fromelectricity consumptionand fuel usage (fCO2e/yr)Reduce emissions by 2% per head on 2007 levels7.02 p/h 8.0 p/h 7.13 p/h 7.22 p/hEmissions (tCO2e/yr) from employee air travelNot set 331 677Not MeasuredNot MeasuredWaste to landll tonnesZero Waste to landll90.1 97.4Not MeasuredNot MeasuredHarmonising with the environment MFP collection ratio 65% 37% 49% 48% 55%MFP recycling ratio90% 85% 86% 84% 92%Toner cartridge collection ratio53% 39% 35% 51% 46%Toner bottle collection ratio75% 74% 67% 71% 55%Consumable recycling ratio98% 98% 98% 98% 98%Tonnes of waste divertedfrom landllNot set 602 629 551 520Performance is stable Performance has improved since 2006 Performance has worsened since 2006 36B.How are we performing against our priorities? continuedKey results indicators Key results indicators Performance Target 2009 2008 2007 2006Contributing to society Charitable expenditureNot set $110,000 $94,000 $95,000 $97,000Volunteer activities staff hoursNot set 525 530 114 150Number of children sponsored to undertake Earthkeepers earth education program.Not set 81 136 132 70Being a great place to work Employee Satisfaction SurveyNot set 73% 73% Service Tenure AwardsNot set 78 77 37 53Staff engagementAustralian average 25%24.9%Not measuredNot measuredNot measuredStaff turnoverNot set 11% 18% 21% 17%Performance is stable Performance has improved since 2006 Performance has worsened since 2006 Our assessment of the impact of our products on global warming show that more greenhouse gases (GHG) areemitted from energy consumption and paper use as a result of product use byour customers than in any other step of the products entire lifecycle. 37Water view Bryan Dalli38C. What are our programsand achievements? C1 How do we help customers embed sustainability and cut printing costs?Continuing to improve the way we share and distribute information is part of how we help our customers manage their businesses using less waste, cost, complexity and CO2. As the global marketplace is constantly uctuating, working towards sustainability will grow in importance. Its not just better for the environment to reduce emissions, it makes good business sense. Ricoh therefore works hard to not just manage the environmental footprint of our products, but we also collaborate with customers to help them reduce their environmental footprint as well. What is covered in this section:Better product use benets customers triple bottom lineCase study Finance ExpressCase study Printing securely at Hawthorn Football Club Better product use benets customers triple bottom lineOur assessment of the impact of our products on global warming show that more greenhouse gases (GHG) are emitted from energy consumption and paper use as a result of product use by our customers than in any other step of the products entire lifecycle.Transferring the knowledge we have accumulated over the 30 years Ricoh has been undertaking environmental management, we are able to benet our customers triple bottom line.Our team of service technicians are actively engaging customers to switch to default duplex and using theenergy-saving features of our range of products.Our focus is on demonstrating how to utilise our products in their optimum energy-saving modes to reduce the associated CO2 emissions and introducing print rules and policies that reduce paper consumption. By providing tools which can measure these aspects we assist our customers to manage the environmental impact associated with their use of our products. Among key software tools that Ricoh uses to help customers cut costs are @Remote Green Reporting and Green Calculator.@Remote Green Reports Ricohs remote device monitoring software @Remote, has already helped many of our customers automatically read meters, order replacement toner, receive device support information, and create detailed activity reports for all their devices. You cant manage what you dont measure. To assist customers in measuring the environmental metrics related to how much energy and paper our products consume,we developed @Remote Green Reports.Using @Remote Green Reports allows organisations to: Measure: compare against corporate goals or policies for reduction in energy and paper consumption Manage: set priorities for improving current environmental performance, raising existing benchmarksPlan reductions: translate energy and paper usage data into reports with detail paper and electricity cost savings and CO2 reduction trendsOur @RemoteTM Intelligent Management System monitors networked printers and MFPs, enabling customers to identify over and under utilised print devices, automate tasks and the minimise the total cost of ownership (TCO). @Remote Green Reports extends this capability to capture TCO from an environmental perspective.@Remote collects select environmental data from our networked printers and MFPs at multiple locations and securely transmits the information to a Ricoh data centre where it is processed to create informative Green Reports.Green Calculator The Green Calculator gives data for specic devices based on typical electricity consumption (TEC) values. It also provides information on the number of trees that need to be planted to offset the carbon emissions for the devices.The Green Calculator gives data for specic devices based on typical electricity consumption (TEC) values. It also provides information on the number of trees that need to be planted to offset the carbon emissions for the devices. 3940Finance ExpressLocated near the border of Victoria and New SouthWales, Albury-based Finance Express Home Loans is a locally owned business that has gained a strong reputation for high levels of client service in a competitive market. The company, which is owned and operated by two well-established brokers, is renowned throughout the region as being responsive and, above all, professional and reputable. Challenge: A paperwork nightmare The world of nance is, by its very nature, one of a seemingly endless stream of paper. Contracts, building permits, plans, general correspondence theyre just a handful of the myriad of documents that are accumulated daily by Finance Express. For Marg Bevis, the companys administration manager, maintaining a paper-based le system had reached almost nightmare proportions. It was taking up to half an hour to locate a client le. Add to that the time required for properly collating incoming documents then inserting them into the correct le, distributing them to brokers then reling, and it was easily becoming the most labour intensive administration task within Finance Express. Solution: A Ricoh Laserche solution It was a visit to the Finance Express ofces by a representative from a Ricoh Business Partner that marked the opportunity to end the nightmare. Our Ricoh Business Partner had already had discussions with one of the owners about our document management problems, Marg said, and when he came in and talked to me about what could be done with a Ricoh MFD [multifunction device] and Laserche solution, the benets were immediately obvious. A solution for the past Where Finance Express ofces and off-site storage were previously almost overowing with ling cabinets and archive boxes, the Ricoh MFD and Laserche solution is the means by which the tide is being stemmed and pushed back. Archived les, which can easily have anything up to 300 pages, are now being scanned on the Ricoh MFD and stored in Laserche within a matter of minutes. A solution for the present With the Ricoh solution resulting in much improvedspeed of le location, distribution and access, Finance Express is gaining more of one of businesss most critical commodities time. Where it may have taken anything up to half-an-hour to locate a client le stored off-site and have it delivered to the partner, its now close enough to being considered immediate. Contributing further to the time efciency of Finance Express is the Ricoh solutions fax management model. When it comes to outgoing faxes, a document required bya bank, for example, can now be faxed to the bank, emailed to one or both of the partners, and automatically stored to Laserche with nothing more than a few pressed buttons on the Ricoh MFD. Its a case of a single operation invoking a sophisticated document workow for multiple outcomes. Considering we often receive faxed contracts of up to40 pages from nancial institutions and generally only two of those pages need to be in hard copy the paper savings are continually increasing, Marg said.A solution for the future As the business grows and this is denitely occurring improved efciencies are crucial; and the Ricoh solution and partnership with the Ricoh Business Partner is enabling us to capitalise on that growth without the burden of having to employ additional personnel or purchase and implement additional support systems, she concluded.C. What are our programs and achievements? continuedCase StudyOn 3 June 2010, Ricoh Australiapartnered with Hawthorn Football Cluband provided the Future Spark trailer. 4142Printing securely at Hawthorn Football Club As one of the most successful AFL clubs with 10 Premierships, the Hawthorn Hawks is backed by a team that goes beyond coaches. From nance and IT through to membership and merchandise, each department contributes to the Clubs success on and off the eld.Part of Hawthorn Football Clubs ve year business plan is to increase their nancial strength by delivering sustainable annual prots of no less than $2 million. To improve document management, the Club needed to:Extend document security as many of their documents contain information relating to player contracts, reports about opposition and tness reportsReduce waste derived from printing such as energy, paper and consumablesCentralise document management to add accountability and simplify useThe solution The benetReduction in printers, faxes, scanners and MFDs from 15 down to 5 MFDs Signicant cost savingsReduced environmental impactIncreased available oor spaceImproved functionalityIntroduction of Equitracs Follow You Printing, where all print jobs are securely held on a central print server until released by user using their smartcard Reduced wasteImproved securityAbility to manage throughput down to user levelImproved workload balanceRicoh saw ample opportunity for the Club to improve ofce workows and conducted an Ofce Consulting audit. As a result they have implemented hardware and software solutions across the Clubs head ofce that has added accountability, reduced environmental impact and improved information condentiality.Instead of having the fteen standalone printers scattered around the building, we now have ve Ricoh multifunctional devices giving us the capabilities to print, copy, scan and fax. From an IT Managers perspective, we can now monitor the number of black and white, colour and even the ratio of single to double sided printing, explained Michael Nelson, IT Manager of Hawthorn Football Club.To add accountability, security and further cost reductions to document management, Ricoh implemented Equitrac Ofce with Follow You Printing, which ensured document security.Follow You Printing also provides the ability to allocate costs back to business units, so the Clubs nance team can better manage budgets and reduce costs associated with printing.When it comes to paper and toner, were seeing a dramatic reduction in wastage by taking advantage of the ability to have the printers automatically enforce print and copy quotas. That same feature means also that weve almost totally eliminated unauthorised use of printers, explained Terrey Dillon, Chief Operating Ofcer of Hawthorn Football Club.Add to that the 14 percent savings were gaining in power consumption and consolidation of consumable purchasing, we can clearly see how a more efcient print solution contributes to meeting one of our key business goals. That is, growing the Hawthorn Football Clubs nancial strength by delivering sustainable annual prots of at least two million dollars, Dillon added.C. What are our programs and achievements? continuedCase Study43C2 How are we providing reliable products and services to our customers?In order to pursue our mission of working closely with our customers to create innovative, unique and tailored solutions that truly deliver business efciencies to support knowledge management, we need to ensure that we are actively listening to the marketplace in which we operate. Regular customer satisfaction surveys are conducted to gauge how we are perceived alongside our competitors. From there, the various ways we communicate and connect with our customers are assessed and new services are introduced, to ensure that we are continually improving our offering.What is covered in this section:Ricoh highly ranked in customer satisfaction surveyTechnical Service networkService Quality Index scoresHow well our technicians performedCase study: Locating machines fasterCustomer service from branch to international levelGlobal Knowledge Management SystemRicoh highly ranked in customersatisfaction surveyWhen Research International conducted a customer satisfaction survey of Ricoh and its competitors, weachieved the highest satisfaction score in the top three drivers of satisfaction: Product and services/solutions.Order and delivery of copiers.Installation.Part of a larger Asia-Pacic survey by ResearchInternational, the Australian survey was conducted nationally across a sample of 700 businesses. The customers interviewed were sampled from 7,000 small and medium enterprises, commercial and government clients of Ricoh and four competitors. The surveys objectives were to analyse overall customer satisfaction and recommend actions to improve customer loyalty and retention.Entitled Benchmarking Ricohs performance against competitors, the surveys aims were to:Ascertain satisfaction and loyalty level of existing customers. Identify problem areas and opportunities for improving customer loyalty.Understand customers needs and perceptions.The brands covered were Ricoh, Fuji Xerox, Konica Minolta, Canon and Lanier. In telephone interviews, customers gave reasons for their choice of a particular brand and ranked their overall satisfaction with that brand. An 11-point scale was used to assess the performance of each brand. The ratings ranged from zero for very dissatised to ten forvery satised. The resulting report said Ricohs customers were loyalto their brand and 82 percent would repurchase the product, while 79 percent would recommend the brandto their friends.C. What are our programs and achievements? continued82% of Ricohs customers would repurchase the product79% of Ricohs customers wouldrecommend the brand to friends44Total RicohProduct and services solutions 94 97Installation 92 97Order and delivery of copier 92 96Order and delivery of supplies 92 93User training 95 100Technical support 93 100Sales representatives 88 95Customer service hotline 88 100Complaint handling 50 60Ricohs satisfaction level is above the market average in the top three important drivers of satisfaction.Ricohs overall performance in Product Features and Service Solution is above market average and ranked in rst place. Ricoh also scored very well in terms of the user training, Technical Support, and Customer Service Hotline.Overall, Ricoh has performed very well in all the areas...Ricoh should continue to keep up the high level of performance in driving high customer satisfaction. Benchmarking Ricohs performance against competitors by Research International.C. What are our programs and achievements? continuedProducts and services solutionsTotal RicohOverall satisfaction 94 97Security features 74 84Product range 89 93Hardware reliability 90 96Ease of use of copiers 92 96Overall imaging quality 93 93Frequency of toner replacement 86 90Software solutions 80 84Network integration 89 92Quality of output 93 94Environmental benets 71 79Speed of device 88 97Reliability of product 92 95Installation services ratingTotal RicohOverall satisfaction 92 97Time taken to install hardware 93 100Competence of hardware installers 93 97Time taken to install software 87 96Competence of software installers 90 94Initial introduction 88 93Ricoh performed better than market average ininstallation service.Tier 1 importance indriving satisfactionTier 2 importance Tier 3 importance 45Order and delivery of copiersTotal RicohOverall satisfaction 92 96Ease of ordering 91 94Product availability 91 96Provision of delivery time 88 93Delivery on time 91 94Ricoh performed better than market average in all aspects in copier delivery.Order and delivery of suppliesTotal RicohOverall satisfaction 92 93Ease of ordering 93 88Supplies availability 90 95Delivery on time 91 89Ricoh performed well in terms of overall satisfaction in order and delivery of supplies.User trainingC. What are our programs and achievements? continuedTotal RicohOverall satisfaction 95 100User training content 94 100Trainer knowledge 94 98User manual 87 95Ricoh set the benchmark in user training and is leading the level of satisfaction in this area across all aspects compared to all brands.Technical supportTotal RicohOverall satisfaction 93 100Speed of response 88 97Helpfulness of technician 94 97Speed of resolution 91 100Clarity of explanation 85 94Competence of technician 93 100Maintenance of machine 91 97Ricoh has outperformed in all aspects in technical support compared to the competition.Sales representativesTotal RicohOverall satisfaction 88 100Ease of contact 87 100Helpfulness of agent 89 94Responsiveness 85 97Quality of self-help guide 81 79Ricoh also performed the best in the market in terms of sales representative.Customer service hotlineTotal RicohOverall satisfaction 88 100Ease of contact 87 100Helpfulness of agent 89 94Responsiveness 85 97Quality of self-help guide 81 79Ricoh scored 100 percent in overall satisfaction and ease of contact when it came to the customer service hotline. Customer service agents were highly rated.Complaint handlingTotal RicohOverall satisfaction 50 60Ease of logging a complaint 75 100Competence/helpfulness 57 100Updates on progress 36 50Speed of resolution 50 60Effectiveness of solution 60 80All Ricoh scores were better than the market average, with 100 percent ratings for Ease of logging a complaint and Competence/helpfulness.Ricohs satisfaction level is above the market average in the top three drivers of satisfaction. Split Point Lighthouse, Aireys Inlet Jerry Randall4647Technical service networkWe operate through a direct branch network in all capital cities with country areas covered by an extensive dealer network of more than 70 outlets. There are approximately 200 Ricoh trained technicians operating throughout the Australian Ricoh network and a full time help desk providing on-line support direct to customers. A 1300 number is used nationally for fault reporting.Instant data on all service activity throughout Australia is delivered via an IBM AS400 system from our head ofce in Frenchs Forest to Brisbane, Melbourne, Adelaide Perth and Sydney CBD. This allows monitoring of all calls placed to our dealer networks in country areas along with various service management reports and account information. All technicians receive full training and technical support through our National Training and Technical Support Centre at Frenchs Forest or locally at their ofce. Full service and parts manuals or CDs are supplied at the completion of each training course. Modications and technical bulletins are regularly received from Ricoh manufacturing and immediately posted to our Technical Website available to all Ricoh branches, and dealers. Technicians are able to access the latest information from the worldwide Ricoh website and notify Technical Support of eld problems and xes.Ricohs Remote Diagnostic System allows our engineers to dial in directly to a fax machine and make adjustments and programming changes online, saving our customers valuable time. This system can also help detect machine component or line problems on most models. Service Quality Index scoresRicoh Australia began extracting Service Quality Index (SQI) averages in late 2008. The low SQI is consistent with Ricohs desire to improve machine reliability through better technician efciency and product quality.Service Quality Index 2008 2009Ricoh Australia (Best) 0.34 0.31Regional Average0.43Regional Goal 0.52 0.52Developed by Ricoh, the SQI is a reporting mechanismthat allows us to monitor performance of machines inthe customers environment and improve technicalservice delivery. The overall objective of the SQI is toidentify and x under-performing machines for customersin a proactive manner. SQI reporting allows Ricoh Service Managers to proactively manage the customers experience of Ricoh equipmentand to decide on issues for escalation on technical grounds. The SQI index is run daily and sent to each state Service Manager.The objectives of the SQI reports are to:Apply a performance scoring index (SQI) against service call data to identify under-performing machines.Increase customer satisfaction.Identify and address any shortfalls in service technician practices.Trigger notications to service managers to take action before the customer is aware that there is a problem.The system checks the service performance for Ricoh machines over the previous 30 calendar days and calculates an SQI score using the following table:Service Quality Index points allocationArea of dissatisfaction Service issue description PointsRecurrence of a problem Service call occurs within 14 days of another call for the same problem 1Service call not xed rst time Not xed rst time Return call booked 1Failure after a preventative maintenance Service call logged within 14 days of a preventative maintenance call 1Time taken to respond andrepair machineMachine down for more than 240 minutes (four hours) 2Frequent failures for a machine Three or more service calls occur within a 30 day period 1Frequent failures for a machine Service call occurs within seven days of previous service call 1New installation failure Service call occurs within 30 days of installation 3A low value indicates a high level of performance, including number of service calls, repeat faults and time taken to repair. For example, if an active machine was installed within the last 30 days and had a service call during that time, this would attract three points. With this type of exible view reporting, Ricoh Australia has become faster at responding to customer needs, whilst also maintaining service level agreements above expectations of the contractual agreement. C. What are our programs and achievements? continued48How well our technicians performedOver the last four years, Service Management has worked towards increasing technician efciency, including ongoing reviews of technician van stocks and restructuring of technician teams, so they are based on product rather than geographic area. This has resulted in more experienced teams with corresponding improvements in efciency.Repeat calls percentage2007 2008 2009RAP Actual 12.4% 12.0% 11.8%Trend 12.6% 12.0% 11.4%Goal 10.0% 10.0% 10.0%Machines per technicianThe following results are due to the high level of technician training and the ow-on efciencies and improvements that