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CSR

CSR Integrated Report

Fujikura Group CSR Integrated Report 2014
[ISO 26000 Core Subject] Organizational Governance

Concept and Intiatives for CSR

Concept and Intiatives for CSR

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 CSR philosophy

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 Group's Corporate Philosophy (MVCV).

Fujikura Group CSR Basic Principles

Fujikura Group aims to serve as a bridge to an affluent future for people, society and the global environment through "Tsunagu" Technologies by becoming a company that serves the anticipated growth and development of society. We have established the following four focus areas to fulfill our social responsibilities in all aspects of our corporate activities so that each and every employees will comply with the relevant laws and regulations of every country or region we operate in as well as international rules and social norms; become aware of his or her own role as a member of society, and act according to good social sense.

【four focus areas】

Fujikura Group Activity Guidelines

Measures for Our Stakeholders

In starting CSR activities in 2009, the Fujikura Group clarified the relationships between the Group and society (its stakeholders) based on the following idea of the Fujikura Group CSR Committee chaired by the president of Fujikura Ltd.: “Companies cannot survive on their own without society. We need to detect and respond to social changes toward the future through communication with society.” Specifically, the CSR Committee and the working teams under the Committee discussed the Group-stakeholder relationships and, as a result, we classified stakeholders who were strongly related to our corporate activities into the following six categories: customers; employees including their families; shareholders and investors; business partners (suppliers); local communities; and governments and the environment. For the fulfillment of our CSR, it is indeed essential for us to disseminate information about our corporate activities in a timely manner to these important stakeholders and incorporate their expectations and opinions into the management of the Group.

Accordingly, the Group will globally dispatch information mainly about its responsibilities and tasks to be fulfilled for its stakeholders. We will also foster new measures for our management priorities and CSR activities, while checking whether we are making appropriate responses to the opinions and ideas expressed by individual stakeholders.

Concept for CSR

Fujikura Group’s Communication with Stakeholders

Our major stakeholders Our responsibilities and tasks Communication methods
Customers The Fujikura Group has been manufacturing electric wires and cables, optical telecommunications devices, electronic wiring components, and automotive components for 130 years since its foundation in 1885. As a global corporate group, we have customers across the world, including commercial enterprises and governments. ・ Provision of safe products and services
・ Manufacturing from customers’ viewpoints
・ Assurance of quality
・ Provision of eco-friendly products
・ Management for higher CS
・ Protection of personal information
・ Website (production and technological information)
・ News releases
・ Responses to CSR questionnaire surveys and audits
・ Publication of newsletters on new products and technologies
・ Display of products at showrooms and exhibitions
・ Contact for inquiries
Employees The Fujikura Group has 94 consolidated subsidiaries (21 in Japan and 73 abroad) and about 53,000 employees (about 6,000 in Japan, 32,000 in other Asian countries, 11,000 in the United States and 3,000 in Europe), who are conducting business activities globally across the world. ・ Respect for human rights
・ Respect for diversity
・ Provision of equal employment opportunities
・ Respect for work-life balance
・ Human resource development
・ Fair evaluation and treatment
・ Occupational health and safety
・ Comfortable workplaces
・ In-house magazines of each company and the Group
・ Intranet
・ Publication of CSR newsletters
・ Invitation of employees’ children and families to the workplaces
・ Internal whistle-blowing system
・ Discussion-oriented labor-management relationship
・ Management of employees’ health and safety
・ Employees’ awareness surveys
Shareholders and investors Fujikura Ltd. has paid-in capital of 53 billion yen and is listed on the first section of the Tokyo Stock Exchange. The number of outstanding shares totals about 360 million and the number of shareholders totals 23,101, of whom 24.7% are foreign nationals (as of the end of March 2014). ・ Appropriate return of profit through dividends
・ Timely and proper information disclosure
・ IR communication
・ Enhancement of the auditing function
・ Communication about eco-funds and SRI
・ Increase of corporate value
・ In-house magazines of each company and the Group
・ Intranet
・ Publication of CSR newsletters
・ Invitation of employees’ children and families to the workplaces
・ Internal whistle-blowing system
・ Discussion-oriented labor-management relationship
・ Management of employees’ health and safety
・ Employees’ awareness surveys
Business partners The Fujikura Group manufactures and sells products in more than 20 countries and regions in the world. In the course of our business activities, we procure materials, parts and equipment from local suppliers. They are our business partners with whom we strive to build win-win relationships. ・ CSR-oriented procurement criteria
・ Fair and appropriate trading
・ Green procurement
・ Supply chain management
・ CSR-related support across the supply chain
・ Partners’ meetings
・ CSR questionnaire surveys targeting suppliers
・ Website for exclusive use by suppliers
・ Daily discussion with suppliers
・ Contact for inquiries
Local communities The Fujikura Group has 94 consolidated subsidiaries across the world. These bases are engaged in production and sales activities, while respecting the local culture, customs, tradition and history of the area they operate in. They also conduct various activities with local residents for the development of their community. ・ Local social contribution activities
・ Volunteer activities and collaboration with NGOs
・ Dialogue and collaboration with local inhabitants
・ Community investment
・ Respect for local culture and customs
・ Environmental protection
・ Safety and prevention of accidents
・ Factory tours and open access to the corporate facilities
・ Local volunteer activities
・ Regular meetings with local governments
・ Disaster support agreements with local governments and others
・ Support to local cultural and traditional events
・ Participation in and support for activities to revitalize local industries
・ Support for school education (through the dispatch of lecturers)
Governments and the environment The Groups’ business sites are regulated by local governments and administrative organizations. These sites conduct activities and exchange information also in their capacity as members of related business associations. For environmental conservation, the sites are proactively conducting activities in line with the Group’s environmental policies and guidelines and based on the environmental policies of local governments. ・ Tax payment
・ Formulation of environmental protection policies
・ Collaboration with NGOs
・ Biodiversity conservation
・ Zero emissions and recycling
・ Anti-global warming measures and energy conservation activities
・ Management and reduction of the use of hazardous chemicals
・ Participation in economic and industrial associations
・ Discussions with and requests to the governmental authorities
・ Submission of various notifications and questionnaire replies
・ Compliance with legal regulations
・ Responses to environmental authorities and regulations
・ Public disclosure of the environmental policies and activities

Materiality and the related activities

Issues of materiality

The Fujikura Group formulated the Fujikura Group CSR Basic Principles in 2009 and designated the following four items (“four focus areas”) set under the principles as the “issues of materiality” for the Fujikura Group.

Four focus areas

Process leading to the selection of issues of materiality

We designated the aforementioned “four focus areas” as “issues of materiality” based on internal discussions made in reference to the comments and viewpoints offered by a range of stakeholders including experts, customers, advanced companies, business partners, the environment, governments and employees. The Fujikura Group is committed to making its sustainable growth compatible with the creation of a sustainable society through its corporate activities as its CSR, and we at the Group believe that the “four focus areas” will and should continue to be the “issues of materiality” for the Group, even if the social environment surrounding our business changes in the future.

Initiatives related to the issues of materiality

The Fujikura Group has been fostering its CSR initiatives based on the “four focus areas,” which the Group has clarified as the “issues of materiality.” We specified the stakeholders for the four areas and also clarified the relationship between the areas and the core subjects of ISO 26000 after this international standard on social responsibility was issued in 2010. Moreover, we conducted a materiality matrix analysis to select specific “areas of activity” and examine them from the viewpoint of stakeholders (“interest of stakeholders” - external factor) and in consideration of the impact of the areas on our business management (“degree of impact on the business” - internal factor). Further, we incorporated the opinions given by third-party experts and our stakeholders in setting the CSR goal in the 2015 Mid-Term Business Plan, formulating the priority CSR measures to achieve the goals, and in selecting the annual targets for the achievement of the medium-term goal. We have thus implemented initiatives related to “issues of materiality” one by one and we report on their progress and results in our CSR report.

materiality mutrix

Relationship with the issues of materiality

In the following table, we show the relationship of the “four focus areas,” which are the “issues of materiality” for the Group, to the “areas of activity” for the fulfillment of CSR, the targeted stakeholders and with the ISO 26000 international standard on social responsibility.

Four focus areas Core subjects of ISO 26000 Areas of activity Priority measures (medium-term/annual) Major stakeholders
1. Sincere corporate activity 1 Organizational governance Corporate philosophy CSR
CSR management
Information disclosure and communication
Compliance
(1)
(2)(3)(4)(5)
(6)(7)
・Investors
・Shareholders
・Customers
・Business partners
・The environment and governments
・Employees
・Local communities
5 Fair operating practices Risk management
Business continuity plan (BCP)
Procurement activities
(19)
(18)
(20)
2. Concern for environment 4 The environment Fujikura Environmental Action Guidelines, Version 4 (2011-2015) (15)(17)
(16)
3. Respect for human beings 2 Human rights Provision of safe and healthy work environments (8)(9)
3 Labour practices Diversity (provision of equal opportunities) (10)(11)
Employment of diverse human resources (12)
Work-life balance (13)(14)
4. In harmony with society 6 Consumer issues Quality management and quality assurance (21)
7 Community involvement and development Enhancement of cooperation with local communities (22)(23)
Social contribution activities (24)(25)

Formulation of the new Fujikura Group priority CSR measures

The Fujikura Group set the Fujikura Group CSR Basic Principles in 2009 and designated the following “four focus areas” set under the principles as “issues of materiality” for the Group: 1. Sincere corporate activities; 2. Concern for environment; 3. Respect for human beings; and 4. In harmony with society.
Based on the “issues of materiality,” we have implemented a range of CSR measures under the leadership of the supervising departments, including the priority CSR measures set for the Group. In fiscal 2012, we formulated and launched the new Fujikura Group priority CSR measures (25 items), following the completion of the three-year measures (25 items set in fiscal 2009) in fiscal 2011. We set the new 25 items according to the following process. First, we set our medium-term CSR goal in the 2015 Mid-Term Business Plan, which is to become a company that is truly advanced in terms of CSR. Then we conducted “materiality matrix” analysis to select the “areas of activity” by making predictions about our stakeholders’ interest in the areas (external factors) and the degree of the impact of the areas on our business management (internal factors). We also incorporated the opinions of third-party experts and our stakeholders in setting the new 25 items of the priority CSR measures.

Areas of activity Priority CSR measures (2012-2015)
Corporate philosophy (1)Implementation of the Corporate Philosophy MVCV
CSR management (2)Enhancement of the CSR-related campaigns
(3)Organization of a stakeholder dialogue meeting
(4)Independent Assurance Report in the CSR report
(5)Use of ISO 26000
Information disclosure and communication (6)Promotion of the disclosure of CSR information
(7)Enhancement of external communications
Provision of safe and healthy work environments (8)Steady implementation and spread of OSHMS across the Group
(9)Mental healthcare system
Diversity (10)Personnel management of global human resources
(11)Employment of more people with disabilities
Employment of diverse human resources (12)Percentage of female managers
Work-life balance (13)Steady use of the parental leave system by men (on an unconsolidated basis)
(14)Examination of various working styles
Initiatives to reduce environmental impacts (15)-(17)Fujikura Environmental Management Guidelines, Version 4
Risk management (18)Enhancement and expansion of BCP to BCM
(19)Examination of information security management
Procurement activities (CSR measures by suppliers) (20)CSR-oriented supply chain management
Quality management and quality assurance (21)Increase in customer satisfaction (CS)
Enhancement of cooperation with local communities (22)Enhancement of cooperation with local communities
(23)Support to employees working as volunteers
Social contribution activities (24)Formulation of the basic policies on social contribution
(25)Expansion of the Fujikura Gakuen Support Group activity

Fujikura Group’s priority CSR measures and initiatives and evaluation of the results

The Fujikura Group aims to become a company advanced in CSR, and its CSR goal has accordingly been set to be attained by the end of fiscal 2015. In order to achieve this goal, we set 25 items within the priority CSR measures along with annual targets to be achieved through a PDCA cycle.
In fiscal 2013, we conducted activities designed to achieve the annual targets under the leadership of the supervising departments. The results and evaluation of the activities are shown in the following table.

In fiscal 2013,Fujikura Group's priority CSR measures evaluation of the results

[Evaluation]○:Attained as planned △:Attained later than planned X:Not attained

Fiscal 2013 Fiscal 2014
Core subjects of ISO 26000 Areas of activity Priority measures Annual targets Activity results Evaluation Plans
1.Organizational governance Corporate philosophy (1)Implementation of the Corporate Philosophy MVCV 1.Stratified training
2.Survey on the MVCV activities ・Awarded commendations to excellent workplace
・Provided employee training
・Awarded commendations to excellent workplaces
・Foster the MVCV implementation activities
CSR management (2)Enhancement of the CSR-related campaigns 1.Number of CSR campaigns: 16
2.Frequency of information dispatches to employees: 110 times
・Number of campaigns implemented: 30
・Information dispatches via the intranet: 101
・Add a new campaign
(3)Organization of a stakeholder dialogue meeting 1.Organization of a stakeholder dialogue meeting ・Organized a stakeholder dialogue at SAKURA Plant (on Oct. 30, 2013) ・Organize a stakeholder dialogue session
(4)Independent Assurance Report in the CSR report 1.Review the Independent Assurance Report given in the CSR report ・Organized Review of the Independent Assurance Report at SAKURA Plant's theme (on Oct. 30, 2013) ・Review the Independent Assurance Report
(5)Use of ISO 26000  1.Examination of the creation of an ISO 26000 comparison table ・Created and included the comparison table in the CSR report ・Analyze cases in reference to ISO26000
Information disclosure and communication (6)Promotion of the disclosure of CSR information 1.Improvement of the online CSR report ・Published the online CSR report (add to 50 Items) ・Improve the external CSR website
(7)Enhancement of external communications 1. Seminar on biotopes at the Millennium Woods ・Provided explanations to about 130 participants ・Hold a dialogue meeting
2.Human rights
3.Labour practices
Provision of safe and healthy work environments (8)Steady implementation and promotion of OSHMS within the Group 1. Steady implementation and promotion of OSHMS across the Group ・Provided briefings to safety managers at the Group safety meeting (on May. 29, 2013) ・Foster OSHMS across the Group
(9)Mental healthcare system 1.Implementation and analysis of the results of a mental stress check ・Conducted a mental stress check for all employees ・Conducted a prevent mental stress check
Diversity (provision of equal opportunities) (10)Personnel management of global human resources 1.Creation of guidelines on international transfers ・Revised the rules on employees dispatched overseas ・Foster a global human resources
(11)Employment of more people with disabilities 1.Continuous employment to increase the rate to 2.0% or more ・The rate was 1.82% as of the end of March; employed one person with a severe disability ・Expand the employment of people with disabilities
Employment of diverse human resources (12)Percentage of female managers 1.Survey on the rate of female managers across the Group ・Organized the survey on the rate of female managers across the Group ・Further increase the rate of female managers
Work-life balance (13)Steady use of the parental leave system by men (on an unconsolidated basis) 1.Continuation of activities to encourage the use of the system ・6 men took parental leave ・Foster the steady use of the parental leave system by men
(14)Examination of various working styles 1.Held an examination meeting with the labor union ・Examined working styles based on analysis of the survey results ・Examine a range of working styles
4.The environment Initiatives to reduce environmental impacts (15)~(17)As described in environmental section of the Fujikura Environmental Management Action Guidelines, Ver. 4 (2011-2015)
5.Fair operating practices Risk management Business continuity plan(BCP) (18)Enhancement and expansion of BCP to BCM 1.Maintenance of the Optical Fiber Unit’s BCM systems ・Adopted the standard as ISO22301 Maintenance of the BCM systems
(19)Examination of information security management (based on the ISMS) 1.Survey on the skill of the ISMS ・Shared the acquisition of ISMS certification with team ・To proceed information security management from the pointview of CSR
Procurement activities (CSR measures by suppliers) (20)CSR-oriented supply chain management 1. To enact Fujikura group basic procurement policies ・Establish Fujikura group basic procurement policies ・To hold a business partners with sessions
6.Consumer issues Quality management and quality assurance (21)Increase in customer satisfaction (CS) 1. To upgrade software for the management of quality information for customers ・Enhanced the convenience of software by interview with some devisions ・Improve CS
7.Community involvement and development Enhancement of cooperation with local communities (22)Enhancement of cooperation with local communities 1. Cooperation with local stakeholders ・Supported the organization of a local cinema festival ・Enhance cooperation with local communities
(23)Support to employees working as volunteers 1. Support and upgrade the Ikimono Wonderland website by employee's volunteer activities ・Renewaled the Ikimono Wonderland website ・Support employees working as volunteers
Social contribution activities (24)Formulation of the basic policies on social contribution 1. Examination of the basic policies on social contribution ・Established The Fujikura Group Basic Principles on Social Contribution ・To introduce the Basic Principles on Social Contribution for activities
(25)Expansion of the Fujikura Gakuen Support Group activity 1. Fundraising campaigns ・Held two fairs to sell Fujikura Gakuen goods ・Expand the activities of the Fujikura Gakuen Support Group

Self-evaluation of the activities conducted in line with the priority CSR measures in fiscal 2013

The Fujikura Group made a self-evaluation of the activities conducted in line with the 25 items of the priority CSR measures in fiscal 2013, and the results are shown in the table in the “Fujikura Group’s priority CSR measures and initiatives and evaluation of the results” section. As for the activities conducted on environmental themes, the results are described in “The Environment” section. For overall CSR activities conducted in fiscal 2013, which was the second year of the four-year plan to be completed in fiscal 2015, we self-evaluated that the activity targets had been “mostly attained as planned.” For the unattained targets, we have already clarified what to be done and in fiscal 2014 we will enhance our activities, in particular those related to the unattained items, while further raising employees’ CSR awareness across the Group.

Self-evaluation method

Across the Fujikura Group, the administrative departments,such as the personnel, general affairs and environment- and quality assurance-related departments, supervise the implementation of the priority CSR measures. In line with the measures, specific activities are conducted based on the CSR goal set in the 2015 Mid-Term Business Plan and on the annual targets to be achieved for the attainment of the goal. We disclose the self-evaluation results of the activities in the CSR report. We ensure the integrity of the self-evaluation by taking the following steps: (1) supervising departments implement a four-grade self-evaluation for each item of the priority CSR measures; (2) a four-grade “peer evaluation” is made by each of the 20 members of the CSR Committee; and (3) comprehensive analysis of the evaluations is undertaken by the 21 parties, and the final evaluation of the analysis results by the director in charge.

Introduction and Utilization of International Initiatives and Guidelines

The Fujikura Group regards it as the Group’s corporate social responsibility (CSR) to make the creation of a sustainable society and the sustainable development of the Group compatible. Based on this recognition, we are fostering a range of CSR activities in line with the Group’s philosophy, basic policies and action guidelines on CSR.

We are accelerating our global business activities in more than 20 countries and regions toward the achievement of the highly ambitious targets set in the Group’s 2015 Mid-Term Business Plan. In the process, we are receiving more expectations and requests from society and stakeholders regarding our CSR activities. In our effort to firmly meet these expectations and requests, which are increasing in depth and complexity, we are proactively introducing the relevant international initiatives and guidelines.

The Fujikura Group is mainly fostering the introduction and use of the following international initiatives and guidelines in the globalization of its business.

  • Sustainability Reporting Guidelines of the GRI
  • ISO 26000: Guidance on Social Responsibility by the ISO
  • The Ten Principles of the United Nations Global Compact
  • United Nations Guiding Principles on Business and Human Rights
  • OECD Guidelines for Multinational Enterprises
  • ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy
  • Version 1.0 of the International Integrated Reporting Framework, IIRC

Status of introduction and utilization

The following shows the status of introduction and utilization of the initiatives and guidelines.

Initiatives/guidelines Status of utilization
Introduction to CSR activities Used as the CSR report creation criteria Inclusion of a comparison table in the report Introduction and utilization on the intranet Creation of a yearly report
Sustainability Reporting Guidelines of the GRI
ISO 26000: Guidance on Social Responsibility by the ISO
The Ten Principles of the United Nations Global Compact
United Nations Guiding Principles on Business and Human Rights
OECD Guidelines for Multinational Enterprises
ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy
Version 1.0 of the International Integrated Reporting Framework, IIRC

(Notes)

Promotion of CSR activities

At the Fujikura Group, the CSR Committee takes the leadership in fostering CSR-oriented management under the in-house company system. Under the four in-house companies, the business/sales bases and domestic and overseas subsidiaries of Fujikura Ltd. foster activities to fulfill their corporate responsibilities in cooperation with local communities in each country and region.

We also foster the sharing of CSR-related information by Group employees through the CSR website on the intranet and the internal CSR newsletter, CSR World (published in Japanese, English and other languages), aiming to encourage them to conduct CSR activities in their countries and regions on an equally high level. Through these activities, the Fujikura Group will be able to contribute to the creation of a society that is friendly to both people and the environment and “become a corporate group that is appreciated by customers and highly evaluated by society.”

Promotion of Fujikura Group CSR activity

Promotion of Fujikura Group CSR activity

CSR website

We dispatch information to employees twice a week and more than 100 times a year via the CSR website on the intranet. This site provides information on the range of CSR campaigns, biodiversity conservation initiatives and local community activities conducted by the Fujikura Group, and has already attracted more than 60,000 hits per year.

CSR website

CSR newsletter “CSR World”

Since July 2011, this monthly newsletter has been sent to employees working at all business sites and manufacturing facilities of Fujikura Ltd. and to about 70 Group companies in Japan and abroad for the promotion of CSR activities across the Group. The newsletter is issued in Japanese and English and is also translated into Thai, Spanish, Chinese and other languages used at overseas Group companies.

“CSR World”

Fujikura Group CSR Philosophy,Basic Principles,Activity Guidelines and others

Fujikura Group CSR Philosophy,Basic Principles,Activity Guidelines and others

Generic names for the Group’s CSR activities

The Fujikura Group is conducting a range of CSR activities including environmental and social contribution activities, and some of these activities are conducted with the participation of not only employees but also their families, including children and retirees of the Group. In the past we did not have any generic names for the CSR activities, and there was no uniformity in the activities conducted by the Group. In the first stakeholder dialogue held in December 2012, one stakeholder suggested that the Fujikura Group foster the activities conducted with the participation of employees, their families, retirees of the Group and local residents through the branding of the activities. In response to this suggestion, the CSR Committee decided to give generic names to each type of activity conducted by the Group. Various name proposals were submitted by the members of the committee and other parties. The committee eventually settled on the following three names.

1.Generic name for environment-related activities: Green & Clean Team Fujikura

2.Generic name for social contribution activities: “Tsunagu” Team Fujikura for People and Society

3.Generic name for conventional corporate environmental activities: Global Fujikura Save the Earth Activity

Quantitative reporting of the Group’s CSR activities

The Fujikura Group launched its group-wide CSR activities in 2009, and five years have passed since then. During this period, the CSR Committee has been working to establish the Group’s CSR philosophy and policies and implementing measures for CSR issues. In the sixth year, the Group began to quantify all the Group’s CSR activities in an easy-to-understand manner and disclose the related numerical data to society and stakeholders. Specifically, from 48 major Group companies (accounting for 90% of the total number of employees) we collected information and data about CSR activities they conducted in fiscal 2013. As for the criteria to quantify (namely, to calculate the monetary value of) these activities, we referred to the unit prices used in the social contribution questionnaire survey conducted by the Japan Business Federation (KEIDANREN).

Fujikura Group's Social and Local Community Contribution Activities

Fujikura Group's Social and Local Community Contribution Activities

Fujikura Group's Global Environment Protection Activities

Fujikura Group's Global Environment Protection Activities

Fujikura Group's safety and sanitation activities and worker-friendly workplace creation activities

Fujikura Group's safety and sanitation activities and worker-friendly workplace creation activities

Number of group companies surveyed: 48