CSR

[ISO 26000 Core Subject] Organizational Governance

We have been raising awareness of the Corporate Philosophy MVCV among individual employees, and in 2010, five years after the establishment of the philosophy, we launched a new activity to foster "1,000 exemplary actions," thereby improving the behavior of individual employees and the entire Group and boosting reform of our corporate culture. Moreover, in fiscal 2011, in order to enhance a Group management approach and realize efficient operation as a group, we began to refer to the Corporate Philosophy MVCV as "The Group Corporate Philosophy MVCV" so that all Group employees can share the philosophy. We are making more efforts to promote this philosophy widely across the Group and to further reform our corporate culture.

The Fujikura Group was founded with a progressive spirit and has cherished and passed down its corporate DNA as a manufacturing company over 127 years. Against this backdrop and from the viewpoint of our customers, we identify what we should do and what we should not do, and always act accordingly based on a corporate culture in which we put first priority on quality. On that basis, all corporate staff members abide by the Group's management rules and promote synergy between our production, sales, and R&D bases, driven by the Global Fujikura Production System (G-FPS) as well as by our commitment to CSR and to a better manufacturing culture. Through these measures, we aim to achieve our vision for the four business fields (Telecommunications,Eelectronics, Aautomotive components, and Metal cables & Systems) described in the Mid-Term Business Plan. In achieving this vision, we will implement our Corporate Philosophy MVCV and become a corporate group that pursues "Value Creation for the Customer" and is appreciated by customers and highly evaluated by society, while achieving further growth for the entire Group.

The history of the Fujikura Group's brand logo dates back more than 100 years ago to 1910, when Fujikura was reorganized from a partnership corporation to a joint-stock corporation. Subsequently in 1985, the Company established a new corporate mark in celebration of the 100th anniversary of its founding. Twenty-five years later in 2009, the present brand logo (registered trademark) was established and began to be used by Fujikura Ltd. first followed by its domestic consolidated subsidiaries in March 2011. Presently, the logo is also used outside Japan by the Company's wholly-owned subsidiaries.

The Fujikura Group's brand logo (registered trademark) is the most basic and essential tool used to communicate our brand image and is composed of the following three elements: the corporate symbol, the alphabetical letters "Fujikura" and the corporate color. The brand logo plays an important role as a symbol of the Fujikura Group and is designed to be regarded as proof of our reliability for customers and society at large and to attract more people to the Group.

The Fujikura Group is fostering its business in a number of countries around the world. In order to expand our business strategically in the global market, we are making a better use of our brand logo. At present, we have registered or are applying for registration of the logo in more than 100 countries.

We conduct Global Fujikura Production System (G-FPS) activities to (1) clarify what we should do and what we should not do from the viewpoint of our customers based on our "quality first" policy, which forms the foundation for our manufacturing activities, and (2) reform our corporate culture to this end.

In the G-FPS activities, each and every employee acts based on the MVCV, which serves as their navigator, to enhance their craftsmanship in manufacturing and eliminate all waste without exception. The activities are conducted across both our manufacturing bases and indirect departments in Japan and overseas aimed at the sustainable growth of the Fujikura Group.

We conduct G-FPS activities under the slogan "half or double or zero," which means to halve or double the activity indicators or reduce them to zero on a case-by-case basis.
Moreover, we have added a new slogan: "team approach with the participation of all" to grasp every chance to enhance our craftsmanship in manufacturing and respond to changes in the times.

In fiscal 2009, we began to eliminate waste in our indirect departments with the participation of all. Four to five members of the departments form a team to conduct improvement activities. At present, there are about 680 such teams at Group companies in Japan, and they have achieved great results by conducting a range of activities, including the "5S" sorting/cleaning and self-discipline activity and activities to conserve energy and improve business operations. Every May we hold the Global Fujikura "KAIZEN" Presentation meeting, and in the one held on the subtheme of "eliminating waste in indirect departments" in fiscal 2010, a total of 25 teams participated, including teams from outside Japan.

The Global Fujikura "KAIZEN" Presentation meeting is held in Japan four times a year, at which the results of G-FPS activities conducted at each of the Fujikura Group bases are presented. Before the QC circle meeting and G-FPS "KAIZEN" presentation meeting were consolidated into this meeting, overseas Fujikura Group teams were given only one presentation opportunity per year, but now they can participate in the meeting four times a year. Under the slogan "Let's go to Japan," overseas teams compete enthusiastically in the local competitions held to select who will be sent to Japan. At the meeting held in Japan, for which a subtheme such as "eliminating waste in indirect departments" or "quality" may be set on a case-by-case basis, participants make presentations in English or in Japanese.

We are also conducting Karakuri improvement activities at low cost. Karakuri improvement means using natural energy to automate our operations and reduce the number of staff necessary for the operations. Specifically we use gravity, the power of springs, gear wheels and pulleys, and other devices as well as knowledge and expertise to produce effects that are far greater than the amount of money invested in the improvement. Many such improvement cases have already been reported.

The list of the reported improvement cases is disclosed to employees to encourage the implementation of similar initiatives in other departments.

Due to spread of globalization, shift to a low-carbon and to energy-efficient society, aging society and birthrate declining which developed countries face, the business environment around us is changing drastically.
In such drastic environmental changes, the Fujikura Group has been working on changing to the corporate culture matching to new age based on new corporate philosophy since 2005. Based on that new corporate culture, we have started a new group strategy-"the 2015 Mid-Term Business Plan".
This Mid-Term Business Plan aims that the change which is strongly committed by every employee will eventually change the entire Fujikura Group as well as Fujikura itself. Please find the summary below.

The Fujikura Group targets to achieve an operating income margin of 6.5% or higher by implementing the Group's growth strategies and enhancing group management.

Growth Strategies and Key Measures
1.Paving the way into new business areas
2.Accelerating globalization
3.Restructuring of business structure
4.Enhancement of the integrated group management

The Fujikura Group conducts its CSR activities based on its mission statement in the Corporate Philosophy MVCV, which is to help customers create value and contribute to society through its "Tsunagu" technologies. We regard CSR as one of the key pillars of our business activities and are actively implementing measures to fulfill CSR.

Fujikura Group believes that the corporate social responsibilities the Group should follow are comprised of activities required for sustainable corporate management and activities for the establishment of a sustainable society, based on Fujikura's Corporate Philosophy (MVCV).

Fujikura Group believes that the corporate social responsibilities the Group should follow are comprised of activities required for sustainable corporate management and activities for the establishment of a sustainable society, based on Fujikura's Corporate Philosophy (MVCV).

Fujikura ensures clarification of operating responsibilities and an efficient top management by adopting the executive officer system. We have also adopted the corporate auditor system as a system that enables monitoring and supervision of management in the managerial decisionmaking process. Through these systems we have divided the execution and supervision of management and clearly defined the monitoring and supervision functions to be fulfilled by directors to ensure that business operations are conducted in compliance with the relevant laws and regulations and the Company's Articles of Incorporation.

The activities of internal control with regard to daily operations are designed to supervise legal compliance in operational processes through the Internal Control System Development Division, the relevant departments at headquarters, and administrative organizations within each business segment.
For internal control, we have established management rules for documents and electronic information and the storage and control of management information. In addition, we review company-wide risks, promote a compliance system, and manage a whistle-blowing system through the Risk Management Committee and the Conduct Code Promotion Committee.

For control of the Group, we established the Group Management Policy to promote its common values and facilitate a shared sense of unity as well as to improve the effectiveness of management supervision, risk management, and compliance systems throughout the Group.

As a mechanism to support Auditors' operational audit and improve audit accuracy, we have formulated Directors' responsibilities concerning the appointment and dismissal of employees supporting auditors, independence from operating departments, and access to information required by Auditors. We also set up regular occasions to exchange views with operating officers and ensure that opportunities are provided for Auditors to express their demands.

At the meeting of the Board of Directors held on September 28, 2009, participants passed a resolution on the Fujikura Antimonopoly Act Compliance Program with a view to ensuring compliance with the law through the announcement by the President of the company's commitment to compliance and also through the provision of relevant instructions to all directors and employees as well as through the enhancement of our in-house compliance system. Under this program, we are formulating rules on contacts with competitors, educating all our sales staff on the Antimonopoly Act, and implementing other measures to improve our in-house compliance system.

On the international front, security problems such as nuclear and missile issues in Iran and North Korea are emerging as serious international concerns. Japan is a major exporter of high-tech products and technologies on a par with the United States. When Japanese companies export their products for consumer use overseas, they need to ensure that none of these products will be used to create nuclear, chemical or biological weapons, missiles to transport these weapons, or other weapons of mass destruction, in order to preserve international peace and safety.

To prevent ordinary weapons being produced excessively to threaten regional peace, we must ensure that no products for consumer use will be used to make such weapons.

In Japan some illegal exports regarding weapons of mass destruction were reported widely by media companies. Such illegal acts threaten regional security and also damage the international credibility of Japan. Companies involved in such acts will also be held liable both socially and ethically and are likely to receive social censure in addition to legal punishment.

As one of its basic principles, Fujikura respects the international trade control rules aimed at maintaining international peace and safety, and is committed to complying with foreign exchange and trade-related laws and regulations and to performing its corporate activities in line with social norms.

Fujikura has set in-house export control rules, based on which the Company is implementing an export control system to ensure legal compliance and promote voluntary export control. Under the system we judge whether our freight and technologies violate the related laws and regulations, check our dealings with customers, notify employees of any revisions to the related laws and regulations, provide them with training on export control, and carry out internal audits for export control. Also other domestic and overseas Fujikura Group companies are implementing Fujikura's basic export control policies based on their in-house export control rules.

Recently in Japan, legal compliance criteria to be met by exporters have been formulated, and accordingly, all companies and universities engaged in the export of freight or provision of technologies are now mandated to control their exports in strict conformity with the criteria. Fujikura's Security Export Administrative Division dispatches its staff to both domestic and overseas Group companies to raise their awareness of the importance of export control and give them advice on the matter.

Fujikura is working to increase its corporate value through communication, specifically by providing all its stakeholders with correct corporate information in a prompt, accurate, and fair manner and helping them understand the corporate brand concept, which is based on the Corporate Philosophy MVCV.

In particular, we are making efforts to ensure speedy information disclosure via the Tokyo Stock Exchange and through our own press conferences. In our IR web pages, we post our schedule for quarterly information disclosure, data on quarterly performance results, and information on the Mid-Term Business Plan, new business projects, R&D results, the launch of new subsidiaries, and others both in Japanese and English, and also in Chinese.

As part of our IR activities, we hold quarterly briefings on our financial results for institutional investors and securities analysts in Japan. At the briefings held in the middle and end of each fiscal year, top managers themselves explain changes in the business performance and the reasons. In addition, these investors and analysts are invited to an annual briefing on the Mid-Term Business Plan, which is formulated for the sustainable growth of the Company. The President and the director in charge of IR also travel overseas to have meetings with local institutional investors and securities analysts in Europe, and the United States. The executives also proactively participate in seminars held for foreign institutional investors in Japan, deeming it important to have dialogues with such investors.

For general shareholders and personal investors, we disclose up-to-date information promptly on our website. Our Investor Relations Group serves as the contact for inquiries about our business performance disclosure schedules and performance forecasts.

*Posted at the website