SUSTAINABILITY Employee Relations

Promoting Diversity, Equity & Inclusion (DEI)

Basic Concept

At Lawson, diversity, equity, and inclusion (hereinafter DEI) are part of our business strategy.
Our goal is to be a company that promotes diversity among its employees, treats each individual fairly, embraces differences, and encourages everyone to voice their ideas and take on challenges.

D (Diversity)

We welcome with smiles a diverse range of members, not only in terms of gender, race, and age, but also in regard to their individual personalities, customs, and religions.

E (Equity)

We provide the necessary resources according to each individual’s background and support each individual so that everyone can voice their ideas and take on challenges.

I (Inclusion)

We create an environment in which each individual respects others as fellow workers, recognizes their values, and all are united as one.

: Sadanobu Takemasu
President and CEO
Representative Director
Chairman of the Board

Diversity, Equity & Inclusion (DEI) Policy

"Creating Happiness and Harmony in Our Community." This is Lawson's Group Philosophy. It means contributing to our communities and bringing happiness and harmony to both communities and ourselves by embracing the diversity around us and creating products and services that meet the needs of changing environments. Differences in personal background, including race, religion, and type of employment, lead to varying perspectives among individuals and within society. We also aim to grow as a member of the global community and engage with diverse individuals in Japan and around the world to enhance our corporate value. We will contribute to the happiness of communities and society by developing an environment in which each of our diverse employees can fully demonstrate their abilities, regardless of gender, gender identity or expression, sexual orientation, disabilities, nationality, or age; leveraging each other’s strengths as an organization; and creating new value in the form of products and services. DEI is one of the essential strengths that drive Lawson’s growth and we will continue to actively promote and embrace DEI.

Framework for Promoting Diversity, Equity & Inclusion (DEI)

An officer in charge of DEI promotion reporting to the President and CEO cooperates with the Human Resources Division in promoting the design, operation and arrangement of necessary programs. The Marketing Division draws on input from female employees, moreover, to conduct marketing aimed at creating new business value. Elected leaders representing Lawson’s business areas nationwide also attend regular meetings of the Genki Leader Committee, which is organized to promote DEI, revitalize internal communications and promote employee health.

Declaration on Promotion of Female Employees' Career Development

Declaration of intent

As part of our diversity, equity, and inclusion (DEI) promotion,
Lawson promotes the empowerment of women.

Diversity in human resources is essential for innovation.
Lawson will continue to proactively recruit a diverse range of employees, including women and non-Japanese people. As we believe that creating and fostering an environment in which women can play an active role will enhance the value of the company, we will continue to actively promote the empowerment of women.

Targets for Empowering Women

Lawson's qualitative target for empowering women is to create a workplace where female employees, including those who are mothers, can excel. Our quantitative targets are to have a 30% ratio of female employees by fiscal 2030, and to raise the ratio of managerial positions held by women to 30% by fiscal 2030.
Since 2005, we have been actively recruiting women with the goal of raising the ratio of female recruitment among new graduates to 50%.

Data on Female Employees

Ratio of women among managers	FY2018	FY2019	FY2020	FY2021	FY2022
Number of female managers (ratio of total female employees)	104 9.70%	111 10.27%	121 11.40%	134 12.20%	154 13.77%
Number of female senior managers (ratio of total female employees)	16 8.20%	16 9.30%	10 6.17%	14 8.30%	11 7.14%
Number of female (Deputy) Senior Vice Presidents^* (ratio of total female employees)	0 0.00％	1 3.00％	2 6.00％	2 6.00％	2 6.06％
Number of female corporate officers^* (ratio of total female employees)	4 33.30％	5 41.67%	6 46.15%	6 50.00%	5 50.00%

* Officers refers to members of the board and corporate auditors. Also, executive officers refers to executive officers and director executive officers.

Key Initiatives to Empower Women

Selective Leadership Training Program for Female Employees: In order to develop female executive candidates in the sales line, we conduct a “Selective Leadership Training Program for Female Employees” and provide regular opportunities for female directors and the President to have direct dialogues with female employees.

Implementation of Career Development Training for Female Employees: We carry out a training program for female employees in their late twenties to early thirties who are highly likely to experience life events while working. In this program, we gather them, share information on our DEI initiatives and how female employees are empowered, as well as carry out a panel discussion with senior employees who have continued working energetically even after their life events so that the participants can paint a vision of their own careers.

Implementation of Training Programs for Employees on Childcare Leave: We carry out group training programs for employees on childcare leave with the purpose of providing the latest corporate information (e.g., business plan for new fiscal year, corporate systems, and employee benefits) and helping them to build their career after reinstatement and create networks. This dispels the participants’ anxiety about reinstatement and helps them to work proactively.
Formerly, most participants were female employees raising children. However, in fiscal 2022, three male employees raising children participated.

Creation and Distribution of a Diversity Promotion Booklet “Lawson Work Style Handbook”: While sending the message from top management to employees toward the promotion of diversity, this handbook introduces career paths and systems to support employees working while raising children, as well as information on role model employees. By sharing information with all employees, we increase opportunities for them to obtain necessary basic knowledge and promote the creation of an environment in which employees can work comfortably while respecting each other.

Support System for Balancing Childcare and Work

Childcare Leave System	Employees can take childcare leave until the child reaches four years of age. When taking childcare leave due to a spouse giving birth, both a short-term childcare leave system as well as birth and childcare leave (childcare leave for fathers after birth) can be used.
Birth and Childcare Leave (Childcare Leave for Fathers after Birth) & Short-Term Childcare Leave System	In addition to birth and childcare leave (up to 28 days until the 56th day after birth) that was introduced on October 1, 2022, the short-term childcare leave system that allows taking five days off at the maximum (from the 57th day after birth within six months) can be used. Birth and childcare leave (childcare leave for fathers after birth), the short-term childcare leave system, and childcare leave can all be used in combination.
Reduced working-hour system during childcare	Employees who have children in the third grade of elementary school or below may elect to reduce their working hours by up to three hours per day. ・Both the reduced workdays system and the holiday day-off system can be used concurrently. ・Can be used regardless of gender, job type, or official position.
Reduced working days	Employees who have children in the third grade of elementary school or below may elect to work only three or four days per week. ・Both the reduced working-hour system and the holiday day-off system can be used concurrently. ・Can be used regardless of gender, job type, or official position.
Special holiday on national holidays	Employees who have children in the third grade of elementary school or below may elect to take national holidays off. ・Both the reduced working-hour system and the reduced workdays system can be used concurrently. ・Can be used regardless of gender, job type, or official position.
Transfer to accompany spouse	When the employer of an employee's spouse transfers said spouse, resulting in a change of residence, consideration is given to moving the employee's place of work to the same area. ・Can be used regardless of gender, job type, or official position.
Flexible Employee System	This system limits the work location and working hours to help employees keep working when a work limit exceeding the existing legal system is required for childcare or nursing care.
Various Daycare, Babysitting, and Support Services	Use of services provided by Benefit Station ・When using a service selected from babysitting services, a subsidy of 700 yen per hour (up to two hours a day and 30 hours a month) can be received with a limit of 21,000 yen per month. ・A system where a subsidy can be received when using a monthly childcare service at a daycare center. ・A system where a subsidy can be received when using a childcare service for sick children at a daycare center. ・A subsidy can be received when using a childcare service at a family support center registered to the Japan Association for the Advancement of Working Women and listed on its website.

: Lawson received the "Platinum Kurumin" Certification Mark
as a supportive company for employees with children

: Lawson received the "Kurumin" Next-Generation Certification Mark
as a company that works to improve its employees' work-life balance

Happy Lawson Daycare Center: In fiscal 2006, we started to look after the children of our employees at an internal daycare center on national holidays. Our business operates even on national holidays, but regular nursery and elementary schools do not. As a result, working mothers expressed their concern at being unable to work on these days as they had nowhere to leave their children. In response, we established the in-house daycare center. In July 2014, we established the Happy Lawson Daycare Center on the first floor of Gate City Ohsaki's east tower, where Lawson's headquarters is located. We established the daycare center to address the persistent shortage of daycare in Tokyo and to enable employees seeking to quickly return to work from childcare leave for the sake of their careers to do so. Employees of the Lawson Group can use the center on a monthly basis or only on national holidays.

Encouraging Male Employees to Take Short-term Childcare Leave

We introduced the "Short-Term Childcare Leave System" in fiscal 2014 to encourage male employees to take childcare leave.
We are working to create a workplace where it is easier for male employees to take childcare leave by putting up posters in workplaces and having supervisors encourage employees to take childcare leave. The rate of male employees taking childcare leave surpassed 80% in fiscal 2016, and the rate has continued to exceed 90% since fiscal 2018.
As birth and childcare leave (childcare leave for fathers after birth) was introduced on October 1, 2022, e-learning was carried out for all employees and managerial staff members respectively in order to let them know about the system and promote employees to take the leave.
Furthermore, we held a session that any employee could participate in freely where an employee who became a father and took both short-term and long-term (six months) childcare leave shared his experience. He talked about a lot of things including what can be done during childcare leave, the connection between childcare and work, and how he currently works while also handling house chores and childcare. A video of the session is also available so all employees can view it as necessary.
As a result, regarding the use of the long-term and short-term childcare leave systems by male employees, the rate of childcare leave taken was 92% and the average number of days off taken was 22.3 in fiscal 2022.

▼Encouraging Male Employees to Take Short-term Childcare Leave

▼Percentage of Male Employees Taking Childcare Leave

Return-to-Work Rate after Childcare Leave

In the accumulated total since fiscal 2000, the ratio of employees reinstated after childcare leave was 94.5%. The ratio of working mothers to all female employees has increased approximately six fold since fiscal 2001.

▼Cumulative total spanning FY2000 to 2022

▼Ratio of working mothers to all female employees

Recruitment of Diverse Human Resources

Recruitment Policy

In hiring human resources, in accordance with the Lawson Group Human Rights Policy, we place importance on the aptitude, motivation, and ability of each individual, regardless of gender, gender identity or expression, sexual orientation, nationality, age, educational background, or origin.

Active Recruitment of Non-Japanese Employees

Since we started actively recruiting non-Japanese employees in 2008, we have been hiring new graduates with a target of 10 to 20% non-Japanese employees. Now, we have more than 140 non-Japanese employees and many of them are actively working in management positions.

(number)

Country/Territory of Birth	Male	Female	Total
China	47	54	101
Korea	13	21	34
Vietnam	1	2	3
Nepal	2	-	2
Mongolia	2	-	2
Indonesia	1	-	1
Thailand	-	1	1
Bangladesh	1	-	1
Total	67	78	145

Promoting Hiring of People with Disabilities

Lawson Will, Inc. was established to employ persons with disabilities (officially registered as a special subsidiary¹ on January 31, 2013). Lawson Will has employees with disabilities who perform commissioned work for the Group. These employees currently work in offices, perform light duties in warehouses and stores, and take part in other operations.

The Group hiring ratio of persons with disabilities² stands at 2.29% (as of the end of February 2023).

Offering a work environment and opportunities to persons with disabilities who have the will and capability to work is part of Lawson's corporate mission. We will continue to implement measures to promote diversity within our organization.

Notes :

1.: Special subsidiary: A company with certification from the national government in special consideration of the hiring of people with disabilities.
Laborers employed at a special subsidiary may be regarded as hired by the parent company and included in calculation of the parent's (or group's) hiring ratio of persons with disabilities.
2.: The Group hiring ratio of persons with disabilities is calculated based on the total number of employees of Lawson, Inc., Lawson Will, Inc., Lawson Entertainment, Inc., and Lawson Store 100, Inc.

Lawson Will, Inc.

Capital	10 million yen
Location	11-2, Osaki 1-chome, Shinagawa-ku, Tokyo 141-8643, Japan
Established	August 1, 2012
Employees	47 (including 46 persons with disabilities)
Business activities	Accepts work from other Group companies on commission

Assistance for People with Disabilities to Work Proactively

We are working hard to create an environment where employees can better understand people with disabilities by implementing activities such as an e-learning training program that is mandatory for all employees as well as an event to experience wheelchair basketball for those who are interested. In actual workplaces, we are currently testing an initiative where store employees with disabilities wear a bib indicating the work they are in charge of so that they can work with ease of mind.
We also used MACHI café coffee cups designed with drawings created by artists with disabilities in stores throughout Japan from February 2022 for a limited period (already ended). We also used designs by artists with disabilities for the cover of the “SDGs Handbook,” which introduces the Lawson Group’s initiatives toward SDGs both internally and externally, in 2022 and 2023 consecutively.
Furthermore, we developed an “art washroom” in which entire washrooms were decorated with art stickers in three stores across Tokyo and Kanagawa Prefecture in November 2022 as well as two stores in Sapporo City in May 2023. We will continue to work on the creation of an environment where people with disabilities can work energetically.

: ▲MACHI café cups with designs drawn by artists from PICFA, a welfare facility in Saga Prefecture

: ▲Art washroom

Lawson Group Human Rights Policy

Creating an Environment in which Diverse Human Resources Can Work in Comfort

Conducting Employee Awareness Surveys and Improvement Activities

Once a year, we conduct an employee awareness survey on all employees to visualize corporate issues and improve organization management. We compare answers for questions in the categories of the company, work, workplace, superiors, systems, as well as autonomous career development year on year and analyze changes from the previous survey, factors, and correlation between answers.
Results of the employee awareness survey in fiscal 2022 were better across almost all categories compared to the previous year.

Overall satisfaction index result: I am generally satisfied with working for this company

	FY2018	FY2019	FY2020	FY2021	FY2022
Affirmative Response Rate	70.4%	70.8%	74.7%	74.0%	74.5%

The results of the employee awareness survey are reported in Executive Committee Meetings and utilized to examine measures and systems for solving corporate issues. In addition, based on the survey results, we create a chart for each organization and share the overview of the survey results and chart for the relevant organization with all employees to provide feedback. In each organization, the organization manager shares improvement activities to solve issues in the relevant organization with members and carries out dialogues with them so that everyone can participate in activities to improve their workplace.
In fiscal 2022, we experimentally introduced a simplified pulse survey in addition to the annual employee awareness survey in some areas. This survey is conducted every other month. As the results can be checked in real time, we can follow the cycle of organization improvement activities such as understanding the current situation and taking actions faster. We aim to introduce this simplified pulse survey to all branches throughout Japan from fiscal 2023 in order to promote improvement measures while grasping the engagement of employees at the front lines in the early stages.

Job Satisfaction Reform Project

We have launched the Job Satisfaction Reform Project with the aim of creating a company where employees can continue to work with satisfaction. The members are recruited from within the company, and the activities are based on employee participation.
We are considering and implementing a variety of initiatives to enable employees to continue working while experiencing vigorous growth, including the establishment of new challenge goals, promotion of digital transformation, measures to revitalize communication, and measures to improve work efficiency.

Holding of Lawson Lively Link, a cross-departmental online seminar

Lawson Lively Link, a cross-departmental online seminar for all employees, is held twice a month with the aim of stimulating internal communication and employee career development. At the beginning of this program, we introduced departments and held study sessions mainly ralated to corporate headquarters. From fiscal 2022, we added content such as “My Way” that focuses on individual employees, introduced affiliated companies for building closer relationships within the Group, and introduced content related to our everyday operations and individual workers to deepen employees' understanding of the company and promote vertical, horizontal, and diagonal communication.

Creating an Environment to Induce Challenges: 100 Million Yen Challenge, L Challenge

We started a “100 Million Yen Challenge” during which anyone can submit their ideas within a budget of 100 million yen from fiscal 2021 as part of the job satisfaction reform project. In the first fiscal year, 170 applications were submitted and 200 in fiscal 2022. In the end, we chose and started testing a coffee subscription service in Aichi Prefecture. In fiscal 2023, 651 ideas were submitted across the entire Group. Among them, presentations for 12 applications were given to the President and directors. A review is currently being carried out to work toward materializing the idea that was chosen.
We started the “Lawson Challenge Award (L Challenge)” in fiscal 2018 to gather and recognize one-year initiatives that implement originality and ingenuity for work, operation improvement, or a new idea. In fiscal 2022, 149 applications were submitted and presentations for 10 of them were given to the President and directors. As a result, the Pork Steak Bowl (sales ended) developed by the Chubu Merchandising Dept. was chosen for the award.
Through these measures, we promote self-motivated challenges.

: ▲The Pork Steak Bowl developed by the Chubu Merchandising Dept.

: ▲A coffee subscription service

LGBTQ-Related Measures

We have been building employee awareness related to LGBTQ via an annual e-learning session on human rights and diversity. From fiscal 2023, we will also sequentially apply our in-house systems. First, we will hold in-house seminars inviting members of the LGBTQ community and conduct e-learning on basic knowledge in order for our employees to understand issues correctly. We also have included same-sex partners in our definition of spouses and have started to apply this to company housing so that employees can live with their partners. Furthermore, we have enabled the use of aliases within the company in consideration of gender identity. In addition, we have established an LGBTQ consultation desk that not only headquarters employees but also franchise owners and crew members can use with anonymity. From now on, while improving the level of understanding and fostering the ally culture, we will extend the application of human resource and employee benefit systems sequentially in order to create an environment where anyone can work comfortably while also providing information and improving this environment continuously.

Appreciation from Outside

Lawson was selected as a “Nadeshiko Brand” for five consecutive years in 2014, 2015, 2016, 2017 and 2018 in recognition of its achievements as a listed company in promoting female employees’ career development. After three years, we were selected for our 6th time in 2021. Selection for the award is made jointly by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange.

In 2015, moreover, Lawson was honored with Diversity Management Selection 100 by the Ministry of Economy, Trade and Industry in recognition of the Company’s achievements in generating innovation by utilizing the diverse talents of women, foreign nationals, and elderly and physically challenged people.

Lawson became the first convenience store to be honored with the Special Award in the 2015 Ikumen Company Award competition by the Ministry of Health, Labor and Welfare.

As a company that considers society and an environment where everyone can participate fairly, and that continuously takes required actions, we registered our company as a “Tokyo Barrier-free Mindsets Support Corporation.” Furthermore, we were selected as a good example of a “Tokyo Barrier-free Mindsets Support Corporation” in fiscal 2022 as we were certified for carrying out especially excellent initiatives in terms of the spirit of innovation, uniqueness, and ripple effect.

Personnel Data

	FY2018	FY2019	FY2020	FY2021	FY2022
Number of employees (non-consolidated) (Numbers)^*1	4,586	4,631	4,790	4,652	4,490
(Men/Women) (Numbers)	3,763/823	3,749/882	3,847/943	3,724/928	3,577/913
Ratio of female employees (%)	17.9	19.0	19.7	19.9	20.3
New graduates hired (Numbers)	187	225	221	118	89
(Men/Women) (Numbers)	109/78	125/100	122/99	60/58	43/46
Ratio of women among managers (%)	9.5	10.1	10.7	11.7	13.0
Number of employees who took maternity leave (Numbers)	40	35	20	27	57
Number of employees who took childcare leave (Numbers)	165	183	162	127	161
(Men/Women) (Numbers)	112/53	136/47	117/45	89/38	104/57
Number of employees who used the reduced working hours for childcare system (Numbers)	74	87	73	97	102
Home teleworkers (Numbers)^*2	24	23	1,547	3,167	3,181
Number of employees who took nursing care leave (Numbers)	1	1	1	1	2
Number of employees on leave for a private injury or illness (mental)	-	-	-	-	42
Average monthly overtime hours	11.20	10.70	9.40	10.48	10.90
Utilization rate of paid vacation (%)	40.9	53.4	54.2	57.2	60.42
Average age (years)	39.4	40.4	40.2	40.9	41.7
(Men/Women) (year)	-	-	-	-	43.4/34.9
Average years of service (year)	12.8	13.7	13.6	14.3	15.2
(Men/Women) (year)	13.9/7.6	15.0/8.0	15.0/8.1	15.7/8.9	16.6/9.7
Turnover rate (%)	6.7	8.4	6.3	6.9	7.0
Number of employees leaving the company (persons)	309	388	301	321	315
Percentage of employees with disabilities (%)^*3	2.24	2.15	2.25	2.29	2.29
Starting salary (yen)*4	-	-	University: 211,000 yen (monthly salary) Graduate school: 224,620 yen (monthly salary)	University: 211,000 yen (monthly salary) Graduate school: 224,620 yen (monthly salary)	University: 211,000 yen (monthly salary) Graduate school: 224,620 yen (monthly salary)
Gender wage gap (All workers) (%)^*5	-	-	-	-	62.5
Subset of regular employees (％)	-	-	-	-	80.8
Subset of non-regular employees (％)	-	-	-	-	88.1