

CSR means an entity or organization
contributes towards the building of a better
society, through daily business activities. In
its medium-term management plan for 2006
to 2008, the Daiwa Securities Group has
clearly established CSR as one of its major
management objectives.
Daiwa Securities Group's basic CSR strategy
Taken from "Passion for the Best 2008," Daiwa Securities Group's new medium-term management plan.
To carry out communication with stakeholders on a more comprehensive scale. The Group contributes to the development of a sound economy and society, as well as maintain itssocial status.
- Education in economics and finance: To work with educational institutions and NPOs to promote economics education, as well as support education and research based on the cooperation between business and universities.
- Socially responsible investment (SRI): To promote the widespread practice of SRI.
- Environmental protection: To build an environmental management system, including the establishment of environmental policies, within the group companies, starting first with the principal group companies in Japan, then the consolidated subsidiaries in Japan, and later, the
overseas subsidiaries.

The CSR Promotion Department was
established at Daiwa Securities Group Inc. in
July 2004. The department participates as
needed in department head meetings at
group headquarters and in departmental
liaison meetings held through the Group,
where it reports on the Group's CSR activities and raises CSR-related issues. The
department also serves as the secretariat
for the Environmental Management
Committee, which is tasked with improving
the quality of environmental management
systems group-wide.
The CSR Promotion Department also
prepares the Daiwa Securities Group
Sustainability Report, responds to various
surveys from outside organizations, and
communicates with external stakeholders
such as NPOs and NGOs.
CSR promotion system


The Daiwa Securities Group strives to
promote better understanding of CSR
among its stakeholders inside and
outside the Group, through various modes
of communication.

The Daiwa Securities Group provides its
employees with training in order to raise
CSR awareness and understanding. The
CSR Promotion Department conducts the
Joint Compliance Training together with
Daiwa Securities Group Inc.'s Corporate
Ethics Department (currently the General
Affairs Department) and Daiwa Securities
Co. Ltd.'s Compliance Division, visiting each
Daiwa Securities Co. Ltd. branch across
Japan. As of March 31, 2006, the training
had been held at 95 branches, and the
Group plans to provide training at all 115
business sites by March 31, 2007. Seminars
are also held for new employees, focusing
on the significance of CSR activities and
Daiwa Securities Group's basic approach to
this subject.

The Daiwa Securities Group sees the
provision of CSR information to the general
public as one of its important responsibilities.
On the Daiwa Securities Group website,
there is not only information about specific
CSR activities carried out by the Group, but
also a general explanation of CSR and
socially responsible investment (SRI). The
website for Daiwa Asset Management Co.
Ltd. has a new section on sustainability.
Finally, the Group is striving to distribute
information externally through industry
publications, national newspapers, and
business organizations' bulletins such as
Nippon Keidanren and the Japan Association
of Corporate Executives (Keizai Doyukai).

The Daiwa Securities Group is promoting a
global network for information sharing and
sustainability activities.
The following initiatives are being carried
out at almost all the Daiwa Securities Group's
principal overseas sites (37 locations
including local subsidiaries, branches, and
representative offices).
· Establishment of a code of ethics and staff manuals
· Preparation of crisis management manuals
· Training to prevent gender harassment; creation of employee counseling services
· Maintenance of hiring and working conditions in compliance with local laws and guidelines
· Meeting the local minimum working age requirement when hiring
· Reduction of environmental impact by promoting recycling
The Group is pursuing various other
initiatives overseas in addition to the
measures above. Daiwa Securities SMBC
Europe Limited has prepared employment
guidelines based on best practices in the
industry, in an effort to provide employees
with equal opportunities. Daiwa Securities
America Inc. requires that all its employees
attend harassment sensitivity seminars, while in Australia, local employees are
offered Japanese language classes. In the
future, the Group intends to implement its
environmental management measures at
overseas sites, as well as corporate
citizenship activities that best suit the
respective locations.
Future issues and fiscal 2006 targets
The Group's focus is on the three priority
issues set out in the medium-term
management plan: (1) Education in
economics and finance; (2) promotion of
socially responsible investment (SRI); and
(3) environmental management. In fiscal
2006, the Daiwa Securities Group will
continue to carry out Joint Compliance
Training sessions and other related
initiatives for the promotion of CSR
awareness throughout the Group. At the
same time, it will increase communication
with various stakeholders both inside and
outside the Group, as a means of
providing information for the better
understanding of CSR.
The Daiwa Securities Group and its relationships with its stakeholders

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