As a member of society, Daiwa Securities Group is actively committed to supporting volunteerism, culture and the arts, international exchange, and social-welfare projects.

   We believe that our contribution to developing a sustainable society and helping to resolve social issues is our mission as a corporate citizen, as well as an investment in society. We are actively involved in a wide range of efforts in the following four main fields.
(1) Education and research activities in the fields of economics and finance
(2) Encouraging volunteerism among employees
(3) Support for culture and the arts
(4) Assistance to communities both on the local and international level through foundations and NPOs

(1) Education and research activities in the fields of economics and finance

   Leveraging the knowledge and expertise we have accumulated in our main businesses—economics and finance—we actively conduct joint research with universities, support economic education in junior and senior high schools, and the like. See Matenal issues 4: Publishing Information for a Sustainable Society for more details.

• Women entrepreneur support project

(2) Encouraging volunteerism among employees

Results of fundraising/recycling efforts by employees (fiscal 2006)

Employee volunteers participating at the Azabu-Juban Summer Festival

Main activities as a corporate citizen (fiscal 2006)

(3) Support for culture and the arts

(4) Assistance to communities both on the local and international level through foundations and NPOs

• Daiwa Anglo-Japanese Foundation

   The Daiwa Anglo-Japanese Foundation was established in 1988 in commemoration of the 25th anniversary of Daiwa Securities' establishment in London, with the goal of promoting mutual understanding between Japan and Britain.
   The Daiwa Scholarship program provides 19-month internships in Japan to British graduates, in order to develop human resources that can serve as a bridge between Japan and Britain. Daiwa Scholars learn about Japan through training in the Japanese language and their own fields of specialty, and come in contact with Japanese society through interpersonal interactions in home stays. Since the program's founding, more than 100 Daiwa Scholarships have been awarded, and graduates of the program are active in a wide range of fields. In May 2007, a reception was held at the British Embassy to commemorate the 100th Daiwa Scholar.
   Additionally, the Daiwa Anglo-Japanese Foundation supports the arts, culture, and science in a wide range of fields in both Japan and Britain.

• Daiwa Securities Health Foundation

• Daiwa Securities Foundation

   The Daiwa Securities Foundation provides research grants to support such fields as volunteering and welfare, with the goals of encouraging, promoting, and raising awareness of volunteering, and enriching lives in society. In fiscal 2006, the foundation provided 195 grants worth a total of 44.86 million yen.
   The foundation will continuously contribute to improving the welfare of the Japanese people through ongoing grants for volunteer activities.

   The Daiwa Securities Group Tsunami Reconstruction Fund was established to assist survivors of the major earthquake and resulting tsunami that struck Indonesia and other countries along the Indian Ocean on December 26, 2004. The fund will provide long-term support for ten years starting in fiscal 2005, with an annual disbursement of 10 million yen, totaling 100 million yen.
   One of the groups we support is the Sri Lankan NGO Women's Savings Effort "Wilpotha." This NGO begins by teaching survivors the importance of savings, and the concept of bookkeeping. More than a simple financial effort, this NGO supports programs that encourage survivors' independence through microfinance, and the impact of this support is slowly but surely beginning to show.
   Asian Community Center 21 (ACC21) selects programs and monitors their activities. Sumitomo Trust & Banking Co., Ltd. is in charge of fund management.

Aid-recipient organizations

* This is the amount spent in the second year of either a two- or three-year plan.

   This is the second year that the Daiwa Securities Group Tsunami Reconstruction Fund has supported the Women's Independence and Development Program. This year, we continued our program for 225 women who received assistance in the first fiscal year (business improvement, home gardening, women's rights/gender equality, and creation of a children's library). In addition, we conducted savings and finance activities, business development, technical training, and other programs for 200 new women. The women from the first fiscal year were actively involved in these programs, and contributed greatly.
   Taking advantage of their experiences from the first year, the women leaders offered a wide range of ideas on how to improve the program, and told the women in the second year about the results and experiences of the first-year women: (1) the savings system, savings passbooks, and bookkeeping; (2) experiences from the savings program; (3) group organization; (4) marketing; and (5) incorporating women's organizations. They used local idioms and vocabulary, and taught in an easy-to-understand way. This increased the understanding of the novice women, and gave them confidence about starting a handicraft or food business.
   They are working actively to create an operational system led by members of the incorporated women's group, with the primary goal of guiding victims toward independence.

   The Daiwa SRI Fund Assistance Program provides grants to cover the personnel and education costs of Japanese NGOs that help people whose lives are in danger for various reasons. This program is planned and operated in collaboration with the Civil Society Initiative Fund, a registered special non-profit organization.
   In response to the needs of society, in fiscal 2006 the total grant money was increased to 10 million yen, from 7 million yen in the previous year. The scope of the program was also expanded from the greater Tokyo metropolitan area to all eligible NGOs in Japan.

* This program derives its funding from a portion of the revenues of Daiwa Securities Group gained through the sale and management of the Daiwa SRI Fund.

Aid-recipient organizations

   We have a new success through the assistance for personnel expenses through the SRI Fund, which manages socially responsible investment products. The focus of the SRI Fund assistance was on our staff, with the goal of strengthening our organization through human-resource training.
   This enabled the staff receiving the personnel expenses to improve their expertise and become actively aware of their roles in the organization, increasing their sense of ownership. Additionally, since marketing and financial staff were eligible, we were able to begin building an infrastructure to support our organization that is beyond the resources of most mid-sized and smaller NPOs.
   Activities to support refugees were accepted as an eligible type of project for human security (protection of people whose lives are in danger), as one form of collaboration between companies and NPOs. Thanks to this, we have had increasing inquiries from adults and students with an interest in NPOs.
   Refugees are among those who fall through the safety net of modern Japanese society. The SRI Fund is showing society that there is value in this effort, especially because there is still no safety net for these people. We hope for even more opportunities to communicate our message to society in the future.