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CSR Management

Increasing Corporate Value and Promoting CSR Management Across the Group as a Whole

CSR Management StructureThe CSR Committee, with Participation by Top Management and Employee Representatives

As venues for deliberation on CSR management, we have set up the CSR Committee and five subcommittees: the Environmental Subcommittee, the CS & Quality Subcommittee, the Human Resources Subcommittee, the Safety Subcommittee, and the Compliance Subcommittee.
Chaired by the President, the CSR Committee's membership also includes the director responsible for CSR and management strategies serving and deputy chairperson, the president of each division company, headquarters directors and three employee representatives, all working to improve committee deliberations and measures.

CSR Committee/Subcommittee Structure
CSR Committee/Subcommittee Structure

CSR Efforts in Japan and OverseasInvigorating Activities by Promoting Widespread Internal Awareness toward CSR and Group Collaboration

The Sekisui Chemical Group is also proactively promoting CSR activities overseas alongside the global development of its businesses. We periodically hold Presidents' Meetings for overseas affiliates in Europe, North America/Mexico, and Asia to discuss issues in each area and propose solutions. In Japan, we provide CSR training for newly recruited employees, new assistant managers, and managers at each level of promotion, based on the Company’s CSR training system. We also conduct separate CSR training tailored for each division company based on its business characteristics. Both in Japan and around the world, every effort is made to promote cooperation among companies that have differing lines of business. In addition to ensuring that each division company fulfills its social responsibilities by learning from each other the importance of best practices, energies are channeled toward ensuring the continues development of the Group’s management.

An Overview of the Activities of Presidents' Meetings at Overseas Affiliates (Fiscal 2015)

(1) North America/Mexico

The Sekisui Chemical Group undertook ongoing discussions on how best to improve its brand in North America/Mexico as an issue that is common throughout the Group as a whole. In particular, steps are being taken to learn from and deliberate on the details of the 21st Conference of the Parties (COP 21) and the Paris Agreement, which set a policy for addressing greenhouse gases, together with the sustainable development goals (SDGs)* put forward by the United Nations, and examples of companies with a global reputation for CSR excellence. In this regard, we are endeavoring to bolster the Group’s brand power through our CSR activities.

(2) Europe

In similar fashion to North America/Mexico, we continue to focus on improving the Group’s brand in Europe. In particular, the roughly 1,000 employees of the Group’s 10 local subsidiaries are reinforcing the dissemination and exchange of information in a bid to further strengthen the sense of Group unity. To coincide with the European Children’s ECO Summit 2015 held in Germany in fiscal 2015, we began using SNS in earnest. This is a first step toward improving the mutual communication skills of the Group’s employees in Europe.

(3) China

Traditionally, each Group company in China ran with its own human resources system. In fiscal 2014, the Group put in place a model that revolved largely around the two qualification and quantitative evaluation systems. The aim is to clarify evaluation criteria and promote employee growth. In fiscal 2015, two companies adopted this new model. The other Group companies in China are considering whether or not to reform their systems in line with individual conditions.

* SDGs (Sustainable Development Goals)

A set of goals determined through deliberations between governments at the United Nations Conference on Sustainable Development (Rio+20). A total of 17 SDGs submitted by the Open Working Group tasked with preparing a proposal were approved in July 2014.

An Overview of the Activities of Presidents' Meetings at Overseas Affiliates (Fiscal 2015)

Procurement PolicyThe Sekisui Chemical Group's procurement policy

The Sekisui Chemical Group procures materials based on the five fundamental concepts of openness; fairness and equity; legal compliance; mutual trust; and consideration for the environment. In addition to quality and delivery times, suppliers are requested to give consideration to the environment, comply with laws, regulations, and societal norms, and ensure health and safety in their own companies.

Read more about our procurement policy here.

Implementing CSR Procurement Surveys

Guided by its procurement policy, the Sekisui Chemical Group began conducting surveys as a part of the process to select new suppliers in Japan from 2007. Through these surveys, the Company works to ascertain the stance of each supplier toward human rights and environmental protection as well as the status of each supplier’s CSR initiatives. In fiscal 2015, nine Group companies in the United States and Mexico took steps to initiate surveys of 68 major suppliers by the end of March 2016. 11 of the 68 suppliers surveyed fell below the required standards and are currently undergoing further evaluation.

Respect for Human RightsCaring about Human Rights Issues across the Entire Supply Chain

Along with its suppliers, the Sekisui Chemical Group engages in business activities that respect human rights as part of its obligation to all stakeholders. All Group employees are provided with a copy of the Company’s Compliance Manual. We have set strict standards for respecting human rights, prohibiting discrimination, preventing harassment, and protecting personal information. We conduct training and e-learning sessions for employees about the prevention of all forms of harassment. We work diligently to raise the understanding and awareness of such issues among all of our employees.

Through CSR procurement with our suppliers, we make sure our business partners respect human rights. In the event that a supplier does not meet the prescribed standards, a request is made to ensure that the necessary steps are taken to resolve any issues. the Sekisui Chemical Group works together with suppliers in the implementation of appropriate measures. Through surveys conducted up to fiscal 2015, the Company has confirmed that there were no incidences of a human rights violation by any of its major suppliers.

Human Right EducationImplementing Human Rights Training and Education

The Sekisui Chemical Group conducts training and educational programs focusing on the theme of human rights for its employees. In this manner, the Group is endeavoring to engage in management that takes into consideration concerns regarding human rights. With a special emphasis on the many forms of harassment, the Group conducts training programs each year to ensure prevention. In fiscal 2015, 284 employees participated in these programs.

Open and Fair Transactions across Our Supply ChainAddressing the Issue of Conflict Minerals

Sekisui Chemical is concerned about the conflict mineral problem, namely the mineral resources controlled by armed forces in the Republic of Congo and neighboring countries that commit human rights violations and destroy the environment. Since fiscal 2014, we have conducted surveys on the use of conflict minerals at companies throughout our supply chain from a CSR management perspective. At the Company’s Headquarters, the Purchasing Group at the Total Manufacturing Management Center is in charge of Companywide procurement, and the procurement sections of each division company have managers in charge of procurement. Through this structure, we are focusing the entire Company on surveys to discover any use of conflict minerals.

Intellectual PropertyProtecting Our Intellectual Property and Respecting the Intellectual Property Rights of Others

The Sekisui Chemical Group endeavors to properly use intellectual property and protect its own rights, such as by quickly filing patent applications for inventions made in manufacturing and development. We also take appropriate measures to prevent and avoid infringing on the intellectual property rights of others. We have prepared educational programs to fit the level and needs of participants and provide training to our employees for basic knowledge acquisition to building intellectual property strategies. Under the basic policy of securing business competitive strength through obtaining strong patents, we are striving to improve quality and raise awareness in development through the evaluation and training of employees.

R&DAssigning a Fair Value to Valuable Inventions

Headquarters and each business section have R&D sections that work to increase the speed of technological development and create outstanding technologies. The Invention Grand Prize has been established as one part of efforts to ensure researchers and engineers receive the evaluations and recognition they deserve. The Invention Grand Prize establishes monetary rewards for inventors recognized as having made major contributions to profits.