The following is our consecutive annual independent review comments on OMRON Group's commitment to corporate social responsibility (CSR) based on our review of the OMRON Group's "Sustainability Report 2007" (hereinafter referred to as "the Report"), and inspections of the Head Office (CSR Management Department, Corporate Culture Promotion Center, Quality and Environment Center, and Human Capital Management Center) and the Kusatsu Plant, and certain inquiries made.

Please note these comments are not an expression of an independent examination opinion in accordance with generally accepted principles as the basis of such opinion, regarding the accuracy, etc. of the information stated in the Report, and are not a guarantee or certification of any kind.

1. CSR management promotion

As seen in the increasing publication of CSR and similar other reports, a growing awareness has spread among companies that society demands not only economic benefits but also environmental and societal consideration from companies. However, the reality is that companies tend to focus attention on short-term profitability resulting in a continuous stream of corporate scandals. For a company to promote CSR, it is necessary for all Group companies, directors and employees to understand and accept the CSR way of thinking and to put into practice.

In May of last year, the OMRON Group established new corporate principles with the CRS consistent corporate core value of "Working for the benefit of society", which was announced both within and outside the Company. Based on a belief that practicing CSR must come from putting corporate principles into action, OMRON also issued "OMRON Group CSR Practice Guidelines" that function as CSR standards of conduct, and "Implementing the Guiding Principles for Action" that concretely discusses action guidelines for OMRON's corporate principles. To facilitate each employee's understanding of OMRON's corporate principles and help them put them into action, OMRON did more than just distributing corporate principles and guidelines to employees. Workplace meetings were organized at all sites, and each department and employee prepared "My Actions" or "Our Actions" based on their own understanding of OMRON's corporate principles. We expect the OMRON Group's commitment to CSR practices to be promoted further by encouraging each Group employee to understand and accept the OMRON Principles through these activities.

2. Global-level promotion of CSR management

Based on the projection that OMRON's overseas sales in relation to its total sales will exceed 50% in the next fiscal year, promotion of CSR practices on a global level will become more and more important. As such, to share OMRON's corporate principles outside Japan, OMRON created opportunities for top executives to visit overseas sites to hold discussions on these principles with local executives and employees. In Greater China, an important strategic region for OMRON, a CSR management organization was set up as an area management company. These and various other activities are underway to promote CSR activities worldwide. To put the CSR management systems firmly in place on a global level in the future, we expect OMRON to strengthen internal audits for CSR activities in a way similar to its corporate environmental audits in which corporate auditors from OMRON Head Office conduct onsite inspections.

3. Conclusions

Practicing CSR can be described as a company's commitment to contributing to sustainable development of society by fulfilling its social responsibilities and addressing not only present needs but also future needs. We believe this way of thinking is also aligned with OMRON Group's management objective of "long-term maximization of corporate value." For fiscal 2007, OMRON plans to identify CSR issues from a global perspective. Based on these findings, OMRON also intends to specify such issues as challenges to be tackled and targets to be met in the third stage (FY2008 through FY2010) of GD2010, which is the basic policy for OMRON Group management strategies. We therefore expect OMRON to develop performance indicators to serve as evaluation metrics for managing the progress toward and achievements of targets.