Corporate Identity through Product Design Applied with Brand Management System

Kim, Eok*

Lim, Chang-Young**
Department of Industrial Design Digital Media & Contents Lab. *billion@korea.com **cylim@kaist.ac.kr
Abstract: Generally, Corporate Identity has been recognized as the integration of only the name and logo of the corporation. However, identity includes both planned and unplanned visual effects composing the whole image of the corporation. Well-refined and harmonious design corporate image can be created by comprehensive holistic approach spanning all the corporate activities such as planning, design, manufacturing and marketing. Product design for corporate identity aims to share corporate spirit and define identity through coordination of images of product and brand. Design concept and its extensive application could be accomplished through the re-interpretation on the needs of a product fitted in with brand image as well as technological review for shape and developing attractive appeals. Brand image is a synthesis of impression: it gives concrete emotional reaction and mental flash of recognition. It also reflects attitudes toward the brand and its perceived benefits. The image of a successful brand means a promise of good function and design when a consumer buys a product. Although brand image is getting more important, many corporations have various branded products, which weaken the continuity of brand identity and strategy and make customers confused in the end. Consequently, implementation of corporate identity through product design should be considered with brand management simultaneously. Based on these situations, product design representing corporate identity should be progressed by not only finding convergent factors resonated with other branded products but also creating divergent factors differentiated from the past models. This study helps understand how brand management affects on the establishment of corporate identity through product design.
1. Introduction Corporate Identity is one of the greatly overused and misused terms. Some executives talk about getting a corporate identity done when they mean commissioning a graphic design firm to develop a new logo. Others refer to their corporate public relations program as a corporate identity program. Some organizations rely on heavily on their corporate image when competing in the marketplace. Even companies with strong brand names will benefit from a strong corporate image. In this way it provides immediate credibility as well as a framework for the further development or brand images. Afterwards, an organization with a poor corporate image is not likely to survive in the long term, and an organization with a low image profile is unlikely ever to realize its corporate potential. Intangible as it may be, a corporations image has a profound impact on the organizations competitive position, its support base and its corporate future. Accordingly, the work presented in here explores the role of brand management, as one of development method, in constructing Corporate Identity through Product Design

2. Corporate Identity through Product Design Corporate Identity through Product Design (below CIPD) has roles of accumulating reliability for customers and enhancing awareness of products, while it has certain power of retaining aesthetic order and sharing vision in terms of the visual coherence. In another perspective of the activism, CIPD is consolidating the corporate harmony among the members of a certain organization, and this is a philosophy system and a strategic activity for corporate image, and a proof-of-corporate and product in socio-scientific respect. That is a public perception by integrated strategic communication. 2.1. Corporate Identity and Corporate Image Corporate Identity is not an isolated design task to address specific current problems or issues and a major asset which needs to be managed on a continuing long term basis. This is expressed in terms of corporate communication-the way the corporation presents itself through corporate design and its corporate personality. Corporate image is the combined impact made on an observer by all of a corporations planned and unplanned visual and verbal communications as well as by outside influences. Its anything and everything that influences how a corporation is perceived by its variation target and is publics or by even a single customer. Obviously, perception and really-image and identity-may differ. In fact, they are likely to differ.
Corporate vision and business strategies

Corporate image audit

Corporate identity audit
Corporate image objectives and identity strategy

Desired corporate image

Changed corporate identity
Figure 1. Corporate Identity programs objectives The scope and scale of a corporate identity program will depend not only on the size and complexity of the organization, but also on the degree of consistency in the organizations current identity and the gap between the desired and actual image profile the organization has with its key target groups. The diagram highlights how a corporation can design its future based on: - The corporate vision and business strategies for the organization - A sound understanding of how the corporation is perceived by its key audiences today, and - An in-depth analysis identity strategy defines how the corporation needs to change its identity to realize the image it wants to create with its target groups. 2.2. Corporate Identity through Product Design Type 1) Convergence type In Sony, Flat TV designs are convergent to the style that is authorized by executive designer and customers. This style emphasizes the screen with separated different color frame and expresses silver metallic front image. This

shows that if one style is evaluated that represent Sony style, the other models are convergent to the style of the model. In this case, consistency is very important factor for creating Sony Design Identity.
KV-21DA1 KV-21DS1 KV-21MF1 KV-25DR1 KV-25DS1 KV-29DS1 KV-34DR1 KV-21MVF1 KV-21SVF1_2 KV-14MVF2
KV-21DA55 KV-21DS55 KV-25DA55 KV-25DS55 KV-29DS55
KV-14DA1 KV-14MF1 KV-14MV

3X4 Series

55 Series

Casual Series

Tele-Video Series

Wide Vision

Series
KV-24DA1 KV-28DA1 KV-28HD700 KV-28HD800 KV-32HD700 KV-32HD800 KV-36HD700 KV-36HD800
KV-28DX550 KV-28DX750 KV-29DX550 KV-32DX550 KV-32DX750 KV-26DX750

KV-32DZ950 KV-36DZ950

DX Series

DZ Series

XGA Liquid Crystal Panel Color TV
BS Digital Hi-vision Projection TV
Flat Panel Wide TV & Home Theater
Figure 2. Example of convergence type 2) Divergence Type Ironically, Identity of Sony is generally known to make innovative products that the other companies dont have developed. The AIBO is the typical model of Sony Identity Philosophy. Creation of innovative design is divergent in comparison with past product models.
Figure 3. Example of divergence type 3) Hybrid Type B&O is famous for unique identity design philosophy. B&O has made all their own special designs for target customers. But once new innovative design is made, they make every effort to maintain consistency of design for building a corporate identity. B&O harmonizes convergent and divergent factors in design activity.
Figure 4. Example of hybrid type Judging From these cases, many companies strive for their own peculiar design identity and take pain that
consistency and variation are very critical issues in design identity activity although there can be different view points. In this thesis, convergence is interpreted as consistency that is not diversity and process of resonance with other models, but divergence is opposite meaning of convergence.
Variation Variety Not Consistency

Divergence

Hybrid

Convergence

Consistency Not diversity
Figure 5. Classification Guide Line of CIPD 2.3. Corporate Identity Through Product Design Review For the sake of investigation of convergence & divergence factors, LG electronics is selected, which has made many branded products and a global leading company. In case of an air-conditioner, before 1998, when CIPD program isnt implemented, there is no consistency of the position of a control button, an overall shape, rounds of corner, but after 1998, air-conditioner designs are convergent to the style that is expressed as vertical lines, metallic color, and thin and slim image. This is a convergent type.

Figure 6. Review of air-conditioner Design The case of Digital TV Design is similar with that of the air-conditioner. After CIPD program is activated, digital TV designs are convergent to using aluminum material, horizontal line that make wide looking, thin and slim image, which is resonated with the air-conditioner design more or less. But innovative designs are created by different way each other as well as detail designs are little varied. This is a Hybrid Type.

Projection TV

Figure 7. Review of digital TV Design
But every design team doesnt manage the CIPD program actively. In case of phone designs, there are no consistency and no philosophy of corporate identity. Furthermore, the problem is no strategy of design identity although this company makes many kinds of models. The target customers of brands are different, and so brand images are various. Counterproposals should be made to cope with this situation.

900MHz

Digital Mobile Phone
Figure 8. Review of Phone Design
3. Brand Experience A product or service is integral to maintaining the brand value of a company. When a company produces products that are consistent with the brand strategy, then all aspects of the brand work in unison to effectively compare in the marketplace. However, the failure of a product to communicate the brand value of a company to a customer can negatively affect the brand image and no other channel can effectively offset that effect. But many companies neglect brand management, and so strategies of product design identity are different with those of brand identity. Brand identity and product design identity should be considered in company with. 3.1. Brand Image Image represents the picture that people have of something or someone, or in a limited meaning, a stereotypical opinion of general public around something or someone. The visualized picture can be based on concrete characteristics of the object or the person in question but also on all sorts of immaterial or even irrelevant aspects. The important aspect of a brand image is the mental picture that consumers have of a brand or branded article. We define a brand image as follows: A brand image is a subjective mental picture of a brand shared by a group of consumers. The image of a successful brand is a promise of performance in the functions for which it is being bought. The promise need not be in terms of superior performance in the core use function but in terms of enhancing self-identity or other intangible benefit. There are good reasons for ensuring a continuity of identity, not only past investments in promotion and the goodwill that results in the brands high familiarity but the good sense of having one and only one essential person/personality that continues to enter into promotion. 3.2. Brand Experience & Promise/Delivery Equation As we look at the range of experiences that a customer has with a product and brand, an interesting equation emerges. The promise made by the brand identity and the product appearance creates a buzz, compels customers to buy, and brings new market segments to the table. The delivery provided by the overall product design, the products performance, and the sustained communication of the brand creates lasting impressions, develops

loyalty, inspires referrals, and empowers the brand/product to extend itself info new areas with ensuring products and sub-brands. Through good design, the promise creates an expectation and the delivery meets and exceeds that expectation. Together, they become the experience of the product and the brand. Unfortunately, in many companies brand management is so far removed from product development that the promise/delivery equation is complicated by disparate goals, disconnected timeless, and competing voices-and further complicated by wildly different procedures, techniques, and technologies. An integrated design requires a unified product and brand design team. This team, composed of product and brand design specialists, served as a liaison between the corporate functions of brand marketing and product development. The experiential integration of product and brand can be useful to organizations of all types, from retail and commercial product manufacturers to service business, Even the medical products industry complicated by heavy regulations and murky customer targets can use design to create integrated customer experiences.
4. Integration of Brand and Product Identity 4.1. Integration of brand & Product Identity A brand that practices integrated design pulls all its values, functions, promises, and processed into a seamless whole. Every brand task feeds on the idea that the customer is not an abstract concept dreamed up by the marketing department.
Identity and brand management

Design Strategy

Internal

Vision and mission

Objectives, Strategy and organization
Management And Organization

Positioning

Communication Strategy

External

Figure 9. The Logic of coherence and integration Brand integration is a company-wide process, not a department. Integrated design is a cross-functional process for managing profitable brand relationships by bringing people and corporate learning together in order to maintain strategic consistency in brand communications, facilitate purposeful dialogue with customers and other stakeholders, and market a corporate mission that increases brand trust. 4.2. Strategies for Designing the Integrated Product + Brand Experience Business managers can create integrated product and brand experiences for their customers using techniques. Following are a few key strategies.
Start with The Big Picture
Like most good ideas in business, the strategies for designing the customer encounter start with a vision. A new corporate identity, brand identity, or product strategy program often provides the impetus for an updated vision and mission statement, or the creation of vision and mission statement for companies that never had one. 6

Once vision and mission are defined and take shape to support them. The product and brand portions of a corporate design strategy drive the first phase of the integrated design process shown below.

Weave The Design Process

Like a woven cord that is stronger than the sum of its threads, the synergy of an integrated development process creates a much more powerful design solution than its separate parts could ever hope for. In the integrated process, the product and brand activities run in parallel, overlapping at key intervals until they reach a single cohesive solution. The cross-functional team includes both product and brand design specialists.
Research: Use it, Dont Abuse it
Market Research relies on interviews, discussions, and surveys and therefore can capture only what customers actually recognize and can articulate. While important, this type of information is often not adequate for an integrated development program. However, when augmented observational research, which looks at actual behavior within the environment of use, the combined data provides a detailed picture of the customer and the user.
Develop a design partnership
Create a partnership with designer, whether they are consultants or in-house staff. Designers are trained to look at problems from various perspectives and to explore multiple solutions and communicate them through illustrations and models. They are also trained to ingest information about customers and culture and then formulate images and ideas. Ask your designers-both product and brand-to envision the total experience for your customer. Feed the process with research and test the ideas with customers, but dont discount the designers intuition. Also ask your designers to build a design ethos within your organization. A design ethos is a corporate culture that includes a system of shared beliefs about design and a design perspective of everything the company does. Any organization can benefit from the key tenets of product and brand design-innovation, customer appeal, aesthetics, and user-friendliness.

Take advantage of your customers intra-sensory perception
Intra-sensory perception is the composite experience of the environment assembled from the various inputs that enter through all the human senses. This amalgamation of sensations and memories influences how a customer experiences a product and brand. Every way a customer encounters a product and brand becomes a part of the intra-sensory experience.
PRODUCT DEVELOPMENT STRATEGY BRAND DEVELOPMENT CONCEPT IMPLEMENTATION

GOALS ALIGNED

ATTRIBUTE CONNECTED

INTEGRATED SOLUTION

THE PRODUCT AND BRAND DEVELOPMENT PROCESS ARE WOVEN TOGETHER TO CREATE AN INTEGRATED DESIGN
Figure 10. Integrated Development Process Intra-sensory perception goes beyond the store. The annoying squeak of packing material being removed from a new computer creates a negative sensation that is logged in the customers mind. The smell of a new car during
a test drive brings back positive memories that blend with other perceptions to create a story in the mind of the customer that influences the purchase decision. The story is the message the message communicated through the product and brand. Touch the customer at every chance you get. Engage the customer at every opportunity and through all the senses. But engage the customer with clarity. Touch the customer with a clear message-a message that is unified through an integrated product and brand. 4.3. Design and Implementation Guidelines Once the visual identity creation process is complete, a key tool to manage the identity in its use and implementation is to create a set of design standards or guidelines. Depending on the scope of the project and the types of resources your company has, the original external design team may do all of the implementation of your new identity system or hand off the adaptation and mechanical art work for an internal group to complete. This generally depends on resources, budget, and timing. For a smooth internal implementation and for the continuity of ongoing maintenance we recommend the development of design guidelines. These documents can range from simple 10-to 15-page documents, to massive binder based system to online digital database. The guidelines can also combine visual with verbal identity guidelines. The scope will vary with the complexity of the identity program, size of the company, time, and resources. For most companies, there are a set of core guidelines that need to be clearly defined for designers (internal or external) and printers to refer to for consistent application of the new identity system.
5. Application of Integrated Brand Management System for CIPD 5.1. Mission & Key Ideas User First Designleads a design to think user first and satisfy the customers satisfaction, which is enhancing the awareness and positioning of products in the global market. Followings are key ideas of CIPD U.S.E.R U: User Friendly Design which is easy to operate and is pleasing the customer S: Solid Design of immaculate appearance with clean surface or superfluous line E: Experience Design which implies topical shapes with a specific surface finishing, and a smart looking, and superior form R: Reflecting lifestyles Design that provides a fresh functionality reflecting essential needs of customers.

Digital Technology

User Friendl Convergence Solid Divergenc Reflecting Lifestyle

User First Design

Expressiv

Invisible HI/GUI

Mission

Key Ideas

Figure 11. Mission and Key Ideas
5.2. Elements of value chain CIPD is made up of the controllable elements of a value chain that comprise of a visual identity, an interaction identity, culture creation. These are the fundamental elements that are established to stand the course of years, not just the quarterly cycle. A company has greater control over creating and tuning the identity, than over creating or changing an image.

Product Value CIPD

Corporate Identity through Product Design

Value Chain

Visual Identity
Style intended for Visual Identity

Interaction Identity

Culture Creation
Design Concept applied with Strategy
Function considered easy access
Figure 12. Value chain 5.3. Level of evaluation This value chain can be applied to all of product design uniformly. Leading and innovative project model should make new culture creation in comparison with massive producing models to which are adapted general identity rule. This guideline will be used as a CIPD evaluation.
Divergence Innovative Level

Creative

Interaction

General Convergence

Figure 13. Level & value chain 5.4. Harmonization convergence and divergence of product Identity Product design representing corporate identity should be progressed by not only finding convergent factors resonated with other branded products but also creating divergent factors differentiated from the past models.
Figure 14. Convergence & Divergence
5.5. Integrated Brand Management System Integrated Brand Management System for CIPD consists 5 modules that are overview, communication, process, database, image & keywords applied with network technology and HTML language. These modules will be convertible as fitted project situation and will be improved according to developing technology condition.

Main Page

Planning Stage Page
Brand Image & Keywords
Feedback Data of Customer
Figure 15. Integrated Brand Management System
6. Conclusion Products represent the identity of a business. They are the most tangible and enduring presentation of corporate character. Products take on identities that are associated with their brands. Brand recognition and product recognition merge as customers experience the fundamental characteristics of both. A customers total experience with a product creates a mental image, a brand impression as strong as any image. From browsing to purchasing to opening the package, from being delighted (or disappointed) by a products design and performance to being relieved (or peeved) with its maintenance routine, the holistic experience with a product creates an indelible imprint on the users psyche, an imprint that is the brand. Products are, in effect, brands. Major suggestions of the study are as follows: Firstly, it has been identifies the most important factor in CIPD is harmonization of convergence and divergence based on the strategic vision of corporate. It is much different from the conventional metaphor method. Secondly, product design identity implemented in accordance with brand identity strategy, this integrated approach supply consistent and refinement corporate image to the customers. Thirdly, integrated brand management system for CIPD is proposed in order to accomplish effectively unified results of project representing corporate identity.

Reference 1. Alycia Pervy, Before the Brand, McGrow Hill, 5-7, 134-135(2003) 2. Daryl Travis, Emotional Branding, Prima Venture, 189-190(2000) 3. James R. Gregory, Jack G. Wiechmann, Marketing Corporate Image, NTC, 34, 64-65(1999) 4. John OShaughuessy, The Marketing Power of Emotion, Oxford University Press, 179-183(2003) 5. Jonathan Cagan & Craig M. Vogel, Creating Breakthrough Products, Prentice Hall, 86-95(2002) 6. Monty Montague, Integrating the Product + brand Experience. Design Management Journal, 17-23(Spring 1999) 7. Peter Steidl & Garry Emery, Corporate image and identity: strategies for designing the corporate future, Woodslane, 31-33(1997) 8. Thomas Walton, Identity and brand: A broadening spectrum of design challenges and design opportunities. Design Management Journal, 6-8(Winter 2001)

Action

Green Procurement and Purchasing
While quality, cost, delivery and service are obviously essential, Sony has added environmental quality considerations to Sonys procurement system. The key to the program is the Sony Green Procurement Guideline. The guideline has two main contents: a request for Sonys business partners to implement environmental management and the green procurement of goods and services. Sony has also set up an e-procurement management system for Sonys wide-ranging operations to increase efficiency and to reduce resource consumption.
Sonys Green Procurement Concept
Environmental management by business partners Green procurement at Sony Green procurement of goods and services
Green Procurement of Goods and Services
Sonys green procurement activities cover every aspect, from raw materials and components to office supplies, energy supply and construction work. They also extend to the outsourcing of services. (Please refer to page 36.)
Production materials Non-production materials (green purchasing) Energy

Materials and Components

Services, etc.
Environmental Management by Business Partners
The Sony Green Partner Standards call for Sonys suppliers and vendors to achieve a number of demanding goals. To develop an environmental management system To develop an environmental risk management system To practice green procurement in their own operations To make public disclosures detailing Sony Green Partner Standards the environmental impact of their products and operations To support this effort, Sony has also set up an environmental issues research page on the Sony Web site for the Sony Procurement Integrated & Rationalized Internet Trading System (SPIRITS) e-procurement system. Besides heightening awareness of environmental issues, SPIRITS encourages interchanges between suppliers and Sony.
The EDIS-P (Environmental Data Informations System-Parts) database is a vital resource in this initiative. With contents of 56 chemical substances known as Sony Specified Substances in Materials and Parts it covers hundreds of thousands of suppliers components. By delivering instantaneous calculations of the amount of a specified substance, the system makes an important contribution to reducing hazardous materials.

EDIS-P scheme

Environmental parts information Business partners EDIS-P system Calculation Environmental impact reduction plan Environmental information disclosure
Volume of parts chemical substances content
Product parts structure information
Volume of chemical substances content
Sony Specified Substances in Materials and Parts
(A) Heavy metals Antimony and its compounds Arsenic and its compounds Beryllium and its compounds Cadmium and its compounds Cobalt and its compounds Hexavalent chromium compounds Lead and its compounds Manganese and its compounds Mercury and its compounds Nickel compounds Organotin compounds Selenium and its compounds Tellurium and its compounds Thallium and its compounds Zinc compounds (B) Halogenated flame retardants PBB and PBDE Tris (2,3-dibromopropyl) phosphate Other halogenated flame retardants (C) Other halogenated substances PCB Polychlorinated naphthalene Polychlorinated terphenyls Chlorobenzenes Hexachlorobutadiene Methyl chloride 3,3-dichloro-4,4diaminodiphenylmethane PVC and PVC blends (D) Additives n-butyraldehyde Dioctyl adipate Ethylenimine Methylcyclohexanol 4-nitro biphenyl Nitrosamines Phthalate Thiuram (E) Dyes Auramine Benzidine-based dyes p-dimethylaminoazobenzene Fuchsine (F) Residual monomers Acrylamide Acrylonitrile 1,1-dichloroethylene Epichlorohydrin Ethylene Ethylene oxide Phenol Propylene Propylene oxide Styrene monomer Tolylenediisocyanate Vinyl chloride monomer (G) Others Formaldehyde Coal-tar and coal-tar pitches Asbestos Erionite Talc (containing fiber-like asbestos) Organic solvents with high boiling point

Glossary

SPIRITS: A system employing an Internet platform to provide business partners with information concerning materials quickly. Green purchasing: Environmentally conscious purchasing of goods or services.
As a user of large quantities of plastic materials and galvanized steel sheets, Sony conducts preferential collective procurement of recycled materials and steel sheets without chrome VI content. With the introduction of lead-free solder, Sony has initiated parts procurement adapted to the Sony Technology Standard, which presents the standard for lead-free solder. With respect to parts packaging, Sony has encouraged its business partners to employ environmentally conscious packaging which does not use PVC, etc. Sony has established an environmental information page on MEETs, the specialized homepage for Sony business partners, and has prepared systems to enable designers to acquire information on environmentally conscious materials easily and to receive business partners proposals for new environmentally conscious materials and parts.

PVC Substitutes

PVCs have been eliminated from Sonys selection of corporate goods, including pocket diaries, ID card holders and umbrellas.

Limonene-recycled pen

Giving another life to polystyrene foam packing, Sony has developed an innovative recycling technology that turns the foam into polystyrene pellets that are employed to manufacture ballpoint pens for in-house use. (See page 39).

Green Procurement

Sonys Green Purchasing Guideline has added another level to Sonys environmental program. Going beyond purchasing of materials and components, it sets standards for office and other supplies. A number of other original ideas have also helped to round out this comprehensive effort.
Pens made from limonene-recycled plastics
Sony regularly organizes exhibits of environmentally conscious products and employee workshops on green purchasing. Updates on environmental issues are featured in the internal newspaper Sony Times and ECOLOGY newsletters and Scope in-house news videos as well as Sonys intranet homepage.
SMAPS Purchasing Information System
Sonys SMAPS (Sony Master of Arts Procurement System) procurement information system automatically calculates the ratio of an offices green purchasing. To attract employee attention, an Eco-mark is used to highlight environmentally conscious office supplies.

Green Energy

Sony has taken the initiative to utilize electricity generated by wind power. Working with Tokyo Electric Power Company, and other public utilities, Sony has played a key role in developing the Green Power Certification System provided by Japan Natural Energy Company Limited. Sony plans call for annual purchases of 3.3 million kWh of electricity from the Choshi-Byobugaura Wind Power Station in Chiba Prefecture when it goes into operation in August 2001. An additional 1.2 million kWh will be purchased from the Noshiro Wind Power Station in Akita Prefecture after it begins operations in December 2001.

Green Envelopes

Developed in cooperation with leading paper and ink producers, Green Envelopes are used by Sony Corporation and the Group companies. The Green Envelopes are made from non-deinked, unbleached, uncolored 100% recycled magazine paper, which has a low recycling ratio, and employ a vegetable oil based ink that is free from volatile organic compounds (VOCs). (This report uses recycled magazine paper from pages 53 to 68.) The technology has also been applied to make 100% recycled cardboard and heavy paper for packaging. (See the application of product packaging materials on page 30.)
A conceptual drawing of the Choshi-Byobugaura Wind Power Station (Japan)
Green Envelopes used by Sony Group companies
MEET'S: A homepage that provides design and materials departments with information on new materials and new processing technologies. PVC (poly vinyl chloride): A class of general-purpose plastics that may release toxic gases during combustion. Lead-free solder: Solder with no lead content. Conventional solder employs lead, which may exert an impact on the environment. Limonene: A vegetable oil extracted from the peels of oranges or other citrus fruits that finds use as an aroma additive in foods and cosmetics.

Energy Conservation

All business operations affect the environment of the earth. CO2 emissions from energy consumption are a particularly pressing concern, since they are recognized as a cause of global warming and other environmental problems. Sony Environmental Vision Towards Sustainability aims to improve eco-efficiency regarding CO2 emissions by a factor of 1.5 by fiscal 2005 and a factor of 2 by fiscal 2010 (fiscal 2000 baseline). Sony is pursuing energy conservation from various perspectives in order to accomplish these goals. Sony is energetically promoting the introduction of renewable energy sources such as wind power, for example, which do not emit CO2.
Highly Efficient Boiler System

Co-generation System

Faced with fluctuating demand for electricity, Sony EMCS, Kohda TEC (Japan) chose a natural-gas co-generation system as its principal energy source. This system supplies hot water heated with exhaust heat to the plant. It has contributed to the reduction of CO2 emissions by improving energy efficiency.

Water volume demand trends
(Sony Semiconductor Kyusyu Kokubu Technology Center)

(Unit: 1,000 tons/yr)

216 170
(Unit: tons/m2) * Volume of water drawn per 1 m2 wafer unit Volume of water drawn daily
PET stone made from recycled disks
Combination concrete molds/ heat-insulating materials
5,000 4,000 3,000 2,000 1,000 0

3,458 3,377 2,3,029

151 2,3,2,813
Compact Disc Recycling (Holland)
Sony Music Entertainments compact disc manufacturing sites in the Netherlands recycle various packaging materials and polycarbonate CDs. The polycarbonate recovered from over three million CDs, or 3% of annual production, is used in molded computer casing production and other applications.

00 (FY)

Cathode Ray Tubes Recycling
Water treatment equipment at Sony Semiconductor Kyusyu Co. Kokubu Technology Center (Japan)

Waste Control

Originally designated as a pilot plant for reduction and recycling more than 95% of waste, Sony EMCS, Kisarazu TEC (Japan) is continuously endeavoring to attain new targets in these areas. The plant assigns waste to 76 classifications for easy recycling, provides indications in three languages and adds easily understood color photos. The plant reduced, reused or recycled more than 99% of the waste generated as of March 2001. Sony EMCS Kohda TEC, meanwhile, has succeeded in reducing, reusing or recycling 97.5% of its waste, by implementing measures such as recycling of waste stretch film, drying sludge from the sewage system and concentrating oil-mixed wastewater.
The Sony Manufacturing Company UK, Bridgend Plant in Wales, which produces approximately three million cathode ray tubes (CRTs) a year, implemented an energy campaign in fiscal 1999 that focused on energy reduction to improve its environmental performance. The project has achieved a 16.8% reduction in energy consumption per kilogram of production since fiscal 1998. Similar success has been achieved by a glass recycling program promoted at Bridgend plant since fiscal 1998 to deal with leadcontaining CRT production waste. The program is conducted in cooperation with a glass recycling firm, and the glass recovered from the plant is reused as a raw material for glass products after cleaning. Approximately 80% of the plants monthly waste glass is now recycled.
Sony Manufacturing Company UK, Bridgend Plant
PET stone: Stone-like material made from melted and hardened resin. Certified with the prefectural Eco-mark, PET stones are used as substitutes for natural stones in railroad pavement, civil engineering and construction. There is also high demand for tape waste for use as fuel.
Chemical Substances Management
Sony is committed to seeking alternatives to chemical substances which may have an impact on the environment and to reducing their use steadily. Sony has been working to minimize the use of chemical substances from the initial stages of product design and procurement. Sony has also developed a management system for chemical substances that classifies hazardous materials according to four levels Class I substances (Prohibited), Class II substances (Phase out), Class III substances (Reduction) and Class IV substances (Control) and established management targets for them, thereby taking every precaution in their management.

Sony Electronics of Korea
Sony Electronics of Korea has worked to minimize its use of hazardous materials by monitoring their use on a monthly basis and reviewing its production processes. It has also conducted various other activities, including gathering information on substitute materials and conducting regular training concerning hazardous materials. Through such activities, it succeeded in reducing hazardous materials by 67.6% in fiscal 1999 as compared with fiscal 1994.
PRTR training at Sony Electronics of Korea Corporation
PRTR: Pollutant Release and Transfer Register
Facility Design and Construction
Sonys environmental commitment goes beyond products and services. Sony also brings a keen sense of responsibility to the planning and construction of plants, offices and other facilities essential to its operations. Before breaking ground for some of its latest production facilities, for example, Sony began with a comprehensive evaluation and analysis based on Life-Cycle Assessment (LCA). These efforts also encompass renewable energy sources such as solar power.
Fab2 (Semiconductor Plant, Sony Computer Entertainment Inc.)
Sony Computer Entertainment Inc. (SCEI) completed construction of its new Fab2 plant in March 2001 on the same site as its Fab1 plant in Isahaya, Nagasaki Prefecture (Japan), with the aims of reinforcing supply of semiconductors and of creating the worlds most efficient semiconductor plant. Because the plant is constructed in the rich natural environment of Isahaya, which is surrounded by sea on three sides, Sony has considered the environment at every stage, from the initial planning to the eventual demolition of the buildings, in cooperation with Sonys business partners. The environmental impact has been thoroughly assessed, and simulated assessment and analysis have been conducted by Life-Cycle Assessment (LCA). With respect to risk management, Sony placed an especially high priority on wastewater management in the construction and directed efforts toward preventing environmental accidents. At the same time, some 80% of the construction waste generated was recycled. The new measures that are designated as a model Sony Group project include evaluating environmental impact of the facilitys life cycle, based on the volume of CO2 emmissions, and comprehensively evaluating and analyzing the environmental impact of construction. In the future, Sony will apply the results of this project in managing the construction of plants and other facilities.

To make effective use of its construction materials, Sony reused soil, metal scraps, wood scraps, cardboard and temporary-use materials that were generated on the site during construction to the fullest extent possible. Sony conserved energy in the production process by introducing an ice thermal storage system that employs electric power generated at night and by introducing more efficient machines and tools. Sony intends to achieve an industry-leading recycling ratio through complete separation of drainage to conserve the water environment.
Environmental Considerations for Kumamoto Technology Center Harmony with global and local environment Value added to production Harmonious coexistence with local community Comfortable work environment Legal compliance /Independent standards/Next-generation orientation
CO2 emissions reduction Recycling
Complete separation of waste water Recycling/reuse of waste water Installing LNG boilers

Reduction of Water

Reduced cooling tower water supply Drainage recycling

Energy conservation

Energy control equipment installation Energy conservation equipment introduction

Community greenification

Tree planting on premises

Pollution prevention

Control/monitoring measure implementation Prevention of outflows from machines

Solar power

Solar power entrance lighting
Sonys New European Headquarters
In October, 2000, the Japanese newspaper Nikkei Business Daily honored the Sony Center Am Potsdamer Platz (Germany) for its Excellence in Advanced Business Facilities Award. The award recognizes office complexes that combine energy efficiency with environmentally conscious planning. The design of the Sony Center makes optimum use of natural light and rainwater to conserve resources. The carpets and furniture have been chosen with future recycling in mind, and the handling of toner cartridges and other waste follows Germanys strict recycling regulations.
SCEIs Fab1 and Fab2 semiconductor plants (Japan)
Kumamoto Technology Center
Sony Semiconductor Kyusyu (Japan) has not only introduced the most advanced semiconductor manufacturing processes at its Kumamoto Technology Center, currently under construction, but it has also conducted environmental audits concerning the actual conditions involved in the construction. Committed to achieving coexistence and harmony with the community, Sony is examining creation of a community-based energy conservation system by introducing natural energy sources such as solar power and by using natural gas supplied by the community.

ISO14001/Product Assessment
Grasping and reducing the environmental impact of products
Product environmental aspects assessment Clearly defining environmental targets for products Design concept /procedures Product assessment check sheet Online confirmation sheet Continuous improvement Performance progress review Review of the overall system Start of product planning P Concrete planning

Customers demand

Product Assessment
Since much of a products environmental impact stems from its planning and design, Sony conducts an environmental assessment at this early stage. This awareness has prompted Sony to consider the pursuit of smaller, lighter products a hallmark of the Sony brand as an environmental initiative. In 1991, Sony launched a full-scale product assessment program that included environmental factors in its overall definition of product quality, reflecting Sonys belief that product quality is inseparable from the environment. Sonys design process manuals were expanded with the addition of a Product Assessment Check Sheet to clarify environmental aspects and set goals for every item. During Sonys preparations for ISO14001 certification, Sony began evaluating its products environmental impact in conjunction with the environmental management system. As a result, the items involved in products environmental impact were clarified, and it
Review A Individual product assessment D Implementation
Verification Verification C Overall environmental quality judgment Online judgment Shipping judgment

Demings management cycle

PDCA cycle system: A Plan, Do, Check and Act management cycle based on ISO14001. Japan Audit and Certification Organization for Environmental Quality (JACO): An evaluation and certification body for the ISO14001/9000 series and OHSMS. Eco-label: There are three types of labels, assigned according to a variety of approvals and contents prescribed by ISO. Deming`s management cycle: A method of meeting targets in which the outcome of efforts is constantly assessed to determine whether an action was correct. When something has gone wrong, modifying action is taken. This cycle is called PDCA in areas concerning the environment. Benchmark: A measurement standard/index usually investigated and set through comparisons with competitors products.

Sony teamed up with a paper manufacturer to develop a technology for using recycled magazine paper as a substitute for bleached packaging paper and applied the 100% recycled magazine paper substitute in its regular and corrugated cardboard surfaces. (See page 23. This report employs recycled magazine paper from pages 53 to 68.)
Packaging materials made from recycled magazine paper
Systemized Product Life-Cycle Assessment (Product Environmental Aspect Assessment System)
Determining the impact a product will exert on the environment during its life cycle and developing strategies to reduce it are key issues for product design. Because conducting product Life-Cycle Assessment (LCA) during the design process is no easy task, Sony has created a system for conducting LCA on its internal network simultaneously with product assessment. Phased-in installation at divisions requiring this type of support began in fiscal 2001, making it easier to predict possible environmental impact prior to a products introduction. The system provides much-needed support for efforts to achieve environmentally compatible design and management.
Introduction of VOC-free Vegetable Oil-Based Ink
Sony worked with an ink manufacturer on development of a vegetable oil based ink as substitute for ink excluding volatile organic compounds (VOCs) and used the VOC-free vegetable oil based ink for printing. The above packaging innovations have been recognized with the Japan Star Award, Asia Star Award and World Star Award, as well as with the Kinoshita-Award by Japan Packaging Institute, which recognizes packaging evaluated as technically superior. The Sony Packaging Engineering Committee was honored in 2000 by the Minister of International Trade and Industry (currently, the Minister of Economy, Trade and Industry) for distinguished service in the Excellent Consumer-oriented Group. Sony continues to move forward aggressively in developing and introducing more environmentally conscious packaging.
An LCA evaluation system entry screen
Environmental Information Disclosure by eco info Mark
Sony has defined a standard of disclosing the content of its environmental considerations externally by using an eco info mark (trademark registration applied for) to convey product environmental information in an easily understandable manner. An example of eco info mark usage:
100% recycled magazine paper. Printed using VOC(Volatile Organic Compound)-free vegetable oil based ink.

Environmental impact reduction performance
36 million kWh 34 t 3.2 t 105 million kWh 2,550 t 1.5 t 16 million kWh 197 t 0.5 t
Convert into amount of money

24-inch TV

KV-24DA1

KV24-CW1

Computer display

CPD-G520

CPD-G500

Business-use VCR

MSW-A2000

DVW-A500

*The environmental impact reduction performance is the total impact exerted by the number of products planned for manufacture during their life cycle. *Monetary conversion coefficient Average value given by the Active Implemented Jointly (AIJ) Project conducted based on the United Nations Framework Convention on Energy conservation 5 yen/kWh Climate Change. Resource conservation 108 yen/kg Value computed from the cost of waste treatment and recycling. Lead solder 1.4 million yen/ton Computed employing Guideline for Environmental Risk Management.
Environmentally Conscious Products
Sonys environmental activities include promoting resources conservation through efficient use of limited resources, reducing/eliminating the use of hazardous materials to avoid the risk of chemical substances emissions and pursuing energy conservation to reduce emissions of greenhouse gases. Sony endeavors to plan and design environmentally conscious products in each product category that are in the top class among the models on the market. These efforts have enabled Sony to market products that are environmentally conscious in various respects. This section introduces some of these achievements.
Stereo Wide TV (KV-24DA1)
The first model in the industry to be equipped with a 24-inch flat CRT, this wide-format satellite stereo TV is equipped with a Dterminal for digital broadcasting satellite reception and the latest digital surround capability.
VHS Video Cassette Recorder (SLV-SE710)
This model represents the 2001 standard VHS model for European market.
Reduction of hazardous materials
Halogenated flame retardants are not used for the printed wiring boards or cabinet. Water-based paint without VOCs (volatile organic compounds) is used on the front panel. Moverover, leadfree coating is used for cables.
With this TV set, Sony introduced lead-free solder for the soldering of all printed wiring boards. This is the first trial for a CRT type TV in the industry. The printed wiring boards also consist of materials without halogenated flame retardants, which might generate hazardous substances during incineration.

The model DCR-TRV30 Handycam employs lead-free solder for the main printed wiring boards.
The MZ-E900 MD Walkman saves resources with the worlds lightest body and 100-hour playback with low power consumption.
Olefin sheets: Sheets made from polyolefin (a type of plastic resin). LED: Light-emitting diode. Vinyl chloride: Material with the potential to generate hazardous gases during combustion. D/D converter: A circuit for transforming voltage of direct current. NTSC model/PAL model: Systems for full-color TV broadcasting. The NTSC system is employed in the Americas and Japan, etc., while the PAL system is employed primarily in Europe.
Note-type PC (VAIO SR Series)
This is a small, slim and lightweight notebook personal computer in the VAIO series.
Personal Computer (VAIO LX PCV-LX50G)
This VAIO desktop personal computer is designed for the Japanese market.
Halogenated flame retardant is not used in the main printed wiring boards and housing.
The housing is made from halogen-free materials.
Corrugated fiberboard cushion has replaced polystyrene foam as a packaging material, and the surfacing of the carton employs 100% recycled paper.
The housing is made from recyclable magnesium alloys. Cardboard cushion and pulp-mold have replaced polystyrene foam as packaging materials.

Recycling design

Full consideration has been given to ease of disassembly in anticipation of future recycling. The disassembly time is the shortest in its class.
Increasing the individual cell capacity and taking advantage of VAIOs high-density mounting technology have made it possible to equip a 6-cell battery. So that the batterys capacity has been increased twice that of its conventional model (PCGA-BP51A), enabling VAIO to operate for up to 5 hours, and an optional highcapacity battery (PCGA-BP4S) permits up to 10.5 hours of operation (PCG-SR9G/K). This performance is in accordance with the numerical values for the power saving mode set by the International Energy Star Program and with criteria on Energy Consumption Efficiency set by the Japanese Green Purchasing Law.
The VAIO LX PCV-LX50G PC has been given the shortest disassembly time among similar models on the market in consideration of recycling ease.

The power consumption of 1 W during standby is top level in its category, and the power consumption during printing of 0.17J/mm2 (energy per unit) is also the best level on the market.
By reducing the driving voltage for the driver IC from 12 V to 5 V, its power consumption has reduced to 13.7 W, an improvement of 25%, in comparison with the previous model SMO-F551.
The model SMO-F561 MO drive achieved total elimination of PVC parts, including cables
Professional-use VCR with Play-mode (J-1)
A playback-only video deck for the Betacam used by broadcasting stations.
The DPP-SV55 digital photo printer boasts the top-level energy efficiency during standby on the market and reuses ribbon cartridges collected from users.
Downsizing and weight-reduction efforts have reduced weight from 33 kilograms to 7.5 kilograms, or less than one-fourth the weight of the preceding model, and the use of materials has been minimized. The volume of materials required to make the printed wiring boards has been reduced from 1,120 cm2 to 220 cm2, a decrease of 80%, and the total length of internal cables has also been reduced by over four-fifths, from 108.2 meters to 20 meters. The packaging materials have been made more environmentally sound by reducing polystyrene foam consumption to less than half, from the 575 grams employed for the preceding product to 259 grams.
Environmental Consideration for Semiconductor Products
Sonys measures to reduce environmental impact from semiconductor products encompass the use of lead-free solder, including a switch to lead-free external pins, and the reduction of both power and materials consumption. Its use of lead-free solder in semiconductor products exemplifies the kinds of responses Sony has adopted. Lead-free solder inevitably increases temperatures higher than tin/lead solder. Sony has succeeded in developing semiconductor packaging that can endure temperatures as high as 260 C, sufficient to support the use of lead-free soldering. In response to the need for lead-free external pins, S-Pd PPFs (Paradium Preplating Leadflame) have been used in semiconductors since 1995 and tin and bismuth plating since 1999. The lead-free pins made possible by these innovations were in use in 60% of Sony semiconductor products in all categories as of March 2001 as a step toward the target of employing 100% lead-free external leads by the end of September 2001.

Power consumption in operation has been reduced to 50 W, one-fourth the 200 W consumed by the preceding model.
The J-1 business-use VCR with play-mode has reduced power consumption to 50 W from the 220 W consumed by its predecessor as well as achieving impressive downsizing and weight reduction.
Bismuth: A chemical element with the symbol Bi.
Distribution, Sales and Service
Business activities such as distribution, sales and service generate environmental impact of a different nature from manufacturing operations. Sony implements a variety of measures to reduce the environmental impact exerted by these non-manufacturing business activities.
Environmental Activities in Logistics
Sony Logistics Co., which handles Sonys distribution in Japan, also has its responsibilities, putting environmental considerations at the forefront of logistics. Its modal shift plan is an effort to rely on more ecologically efficient rail and marine transport instead of highway transport. This initiative also extends to joint distribution with other companies as well as to steps to lower fuel consumption and increase recycling. Sony Logistics is cooperating with Toshiba Corporation in rail transportation employing 31-foot container cars. Sony ships batteries, tape products and personal computers to Osaka by train in containers, and Toshiba Corporation uses the same containers to transport refrigerators from Osaka to Tokyo. Efforts currently under way to reduce fuel consumption center on implementation of a fuel reduction program in which targets are set based on measurements of light oil and gasoline consumed by vehicles directly or indirectly employed in transportation since May 1997. The program is helping to cut CO2 emissions as well. In the area of recycling efforts, nearly 100% of the approximately 213 tons of stretch film used in transportation during fiscal 2000 was successfully recycled.
Environmental Activities by Service Operations
Environmental Activities at Sony Service Company Ltd.
The main activities at Sony Service Company in Japan include resource conservation through the introduction of electronic business procedures and communications along with energy conservation and discarded parts recycling. Other conservation efforts involve separation of waste including soldering scraps, printed wiring boards, discarded home electrical appliances, used packaging and corrugated cardboard for disposal after servicing. The service operations are also energetically pursuing programs to lengthen product lifetimes and working toward components sharing with the Network Companies.
A Longer Life for European PlayStations
Since PlayStations launch in 1995, more than 32 million units have been sold in Europe. Most of the consoles returned to Sony Computer Entertainment Europe (SCEE) are repaired and sent back to the customers directly, but SCEE has also operated a graded program since 1996 to return the consoles to as new condition. Graded consoles are then sold to selected resellers throughout Europe. Consoles that cannot be repaired or graded are sent for disassembly and materials recovery. During the February to June 2000 period, for example, almost 30 tons of PlayStation plastic were recycled into various secondary applications. SCEE is continuing its pursuit of this type of refurbishing and recycling business. It is currently examining ways of introducing new products into the project early in 2002.

impact and cost, and exchanging opinions with its members. In March 2001, Tsingua University organized an interim-report meeting for the project in Beijing that attracted enthusiastic interest from representatives of Chinas government and academia in attendance. This program is continuing in fiscal 2001.
An interview meeting at Shanghai Suoguang Visual Products (China)

Sony Life Insurance Co.

By offering rational life insurance and high-quality service, Sony Life Insurance provides its customers in Japan with economic security and stability.
Environmental Themes Form a Life Insurance Company
Beginning in 2000, Sony Life Insurance started building an environmental management system at its headquarters. The system went into effect in December of that year, and in March 2001, Sony Life Insurance became the first company in its industry in Japan to acquire ISO 14001 certification. Although only a few aspects of the life insurance business influence the environment directly, programs have been established to deal with indirect influences. The following are some examples:
From a product perspective
Considering the introduction of environmentally conscious products as a special variable insurance account or through the selection of mutual funds among insurance products and services in order to meet customer needs.
From an operational reform perspective
Promoting paperless procedures by introducing IT into operations, as a large number and variety of printed forms are currently required in the life insurance business.
Sony Pictures Entertainment (U.S.A.)
From a community action perspective
Promoting volunteer activities and donations to environmental conservation as a company operating a highly public business. By developing programs that meet the unique needs of the life insurance business, Sony Life Insurance is creating systems that contribute to protection of the global environment, in addition to conducting daily efforts to reduce energy and resources consumption, encourage recycling and promote green purchasing. Sony Life Insurance aims to conduct an environmental management program designed specially for the life insurance industry and to continue improving its environmental performance.
Sony Life Insurance environmental management program materials and envelopes made from 100% recycled magazine paper.
Shanghai Suoguang Visual Products Co.
Shanghai Suoguang Visual Products (SSV) in China primarily manufactures large visual equipment, such as color TVs, computer monitors and projectors.

Environmental Accounting