Stakeholder Engagement

Improving Corporate Value Through Strengthening Dialogue with Stakeholders

Management Approach

Basic ConceptPromoting Constructive Dialogue with Stakeholders

To build relationships of trust with its five stakeholders—customers, shareholders, employees, business partners as well as local communities and the environment—the Sekisui Chemical Group considers that it is important to strengthen corporate value through constructive dialogue.
Positioning its stakeholders as partners in improving corporate value, having constructive dialogue with them, assessing their expectations and requests as well as resolving society-wide issues together with them, leads to great opportunities for the Sekisui Chemical Group.
We will create a relationship of mutual prosperity with our stakeholders while continuing to promote sustainable growth.

Dialogue with StakeholdersReflecting Stakeholder Opinions in Corporate Activities via Various Methods of Communication

Continuing on from the previous fiscal year, we instigated dialogues with various stakeholders through an array of venues, including the FY2017 (345th) Customer and Top (CAT) meeting (which saw 2,418 attendees), where the top management of our housing real estate sales company directly heard feedback from customers; meetings with investors and investigative organizations; with business partners at the Heim Mutual Prosperity Meeting and on other occasions; and at the eco products expo, in which we participate annually.
With regard to employees, forums were established for top management, including the president, to have direct dialogue with employees. At the same time, we gathered employee opinions and requests for CSR activities through CSR report survey questionnaires. In addition to these opinions and requests from inside the Company, we also collected opinions and requests from outside the Company toward public information, including the CSR Report, and utilized them for the promotion of CSR management and the creation of CSR reports.
The CSR Management Office, which falls under the purview of the Director of the Business Strategy Department, is responsible for promoting dialogue with all stakeholders.The assessments and opinions of all stakeholders are reported to the CSR Committee, which is chaired by the Company president and is composed of directors, and the Company strives to adequately reflect these views in its activities.
There were no major concerns voiced by stakeholders through any of the engagements in fiscal 2017.

Main Responsibilities, Communication Channels, and Communication Methods

Stakeholders The Sekisui Chemical
Group's Commitment
Contact Communication Methods and Tools
Customers We take the voices of our customers seriously, offer prominent products and services and strive to build a long-term relationship of trust with our customers.
  • Departments in Charge of CSR
  • Departments in Charge of Quality Control
  • Sales Department
Customer Consultation Office (handles inquiries), customer satisfaction surveys, everyday sales activities, web page, exhibition spaces / expos / events
Shareholders To meet the expectations of all our valued shareholders, we strive for highly efficient use of capital, fair ethical disclosure of information, adequate returns from profit, and increasing corporate value through sustainable growth.
  • Departments in Charge of Public Relations and IR
General shareholders’ meetings, communications with shareholders, explanatory meetings on the closing of accounts,
annual reports, responding to surveys from socially responsible investors
Employees We foster among our employees a spirit of taking on new challenges and are actively creating workplaces where every employee can stand out and diverse human resources can both excel and feel that their work is worthwhile.
  • Departments in Charge of CSR
  • Departments in Charge of Legal Affairs
  • Departments in Charge of Public Relations
  • Departments in Charge of Safety
  • Departments in Charge of Human Resources
Individual meetings, counseling,
internal whistle-blowing system,
employee satisfaction surveys,
employee questionnaires,
dialogues with management, intranet and internal
newsletter, labor-management meetings
Suppliers When procuring materials, we follow the fundamentals of being open, fair, compliant with the law, engaged in relationships of mutual trust, and environmentally conscious. We aim to achieve coexistence and shared prosperity by building more robust partnerships with our suppliers and engaging in fair trade. We are also engaged in promoting CSR Management based on cooperation with our suppliers.
  • Departments in Charge of Legal Affairs
  • Departments in Charge of CSR
  • Departments in Charge of Purchasing
Everyday purchasing activities, explanatory meetings with suppliers, CSR procurement questionnaires, website
Local communities We emphasize a perspective that encompasses contributions to the development of communities through our business, coexistence with communities, and environmental conservation. We think about how to make measures that are tailored to the needs of each community and practice business in ways that engender trust.
  • Departments in Charge of CSR
  • Factories and Offices
  • Departments in Charge of Public Relations
Volunteering by employees, support for learning (dispatching of instructors, factory tours, etc.),
news releases
Global environment We are engaged in creating and expanding the market for Environment-contributing Products, reducing our environmental footprint,
and conserving the natural environment—all with the aim of achieving “a world in which biodiversity is conserved.”
  • Departments in Charge of CSR
  • Factories and Offices
  • Departments in Charge of Sales
  • Departments in Charge of Purchasing
Volunteering by employees, dialogues with NPOs and NGOs, everyday sales operations,
everyday purchasing activities
Major Initiatives

Dialogues with EmployeesManagement and Employees Hold “Vision Caravan 2017” Direct Communication Sessions

Believing that dialogue between management and employees is essential in resolving the problems faced by the Company as well as work-related issues, the Sekisui Chemical Group has been providing opportunities for employees to have direct communication with top management since fiscal 2002.
In fiscal 2017, “Vision Caravan 2017” was held as a venue for direct communication between senior executives and employees. At domestic and the four regional (North America, Europe, China and ASEAN) overseas Group companies, the president and other directors visited each location themselves, introduced the history and mission of the Sekisui Chemical Group and explained the Medium-term Management Plan that began in fiscal 2017. For employees of overseas Group companies, fiscal 2017 was their first year to have direct communication with the president.
A theme that was delved in to an even greater extent at Vision Caravan 2017, which targeted domestic Japanese Group employees, was societal issues in Japan. At the event, there was an active exchange of views concerning “work-style innovation,” a subject that was also highlighted in the Medium-Term Management Plan. The opinions offered by employees will be reflected in specific work-style innovation efforts going forward.

Dialogue with InvestorsContinuing to Engage in Direct Communication in an Effort to Enhance Understanding

Interest in ESG investment, by which investments are actively made in companies that engage in CSR activities, has been mounting recently. At the same time, ratings agencies are increasingly undertaking surveys. As its business domains are so diverse, the Sekisui Chemical Group believes it important to give explanations individually and carefully to ensure that the Group's overall business characteristics and CSR initiatives are sufficiently and correctly understood.
We list “active engagement between investors and management” as one of the crucial tasks in which we are engaged in our medium-term CSR plan. To assess how our corporate value and sustainable growth are reflected in how we appear from an outside perspective, we have set a medium-term target of holding over 200 dialogues and are continuously engaged in direct dialogues with ESG investment assessment and ranking institutions, particularly in Europe, as well as with financial institutions and investors in Japan and throughout the world. During the 2017 fiscal year, we held 88 engagements.
With the investor and ESG investment assessment as well as SRI ratings agencies very much in mind, Sekisui Chemical discloses detailed information on its website.

Active Engagement Between Investors and Management

FY2017 Results
Number of engagements 88
  • Note: The number of engagements represents the number of times company presidents and executives in charge of specific areas had dialogues with investors.

Spreading Awareness of CSR Through CommunicationEnhancing Communication Tools with Employees

We use various communication tools to deepen understanding among employees of the Sekisui Chemical Group’s CSR initiatives.
We have produced "Our CSR," which explains the Sekisui Chemical Group’s CSR concepts, in seven languages (Japanese, English, Chinese, German, Spanish, Dutch and Thai) and, to mark the 70th anniversary, a commemorative magazine (in Japanese and English) that summarizes the 70-year history and prominences of the Sekisui Chemical Group. The anniversary magazine has been distributed to all Group companies in Japan and overseas. We also distribute the CSR navigator email newsletter to employees to keep them up to date with the latest CSR topics at the Sekisui Chemical Group.
In fiscal 2017, an explanation page providing information about the important themes of the Sekisui Chemical Group’s CSR was posted in the in-house newsletter distributed to all domestic employees of the Sekisui Chemical Group.
In addition to having reached the stage at which employees are able to freely download them via the intranet, these kinds of communications and CSR-related materials are also distributed to all target employees, regardless of whether they are regular or non-regular staff, on an as needed basis, for example when new employees join the Company or when implementing CSR-related educational programs.

Distribute Value to Stakeholders:Calculating Economic Value Distribution Based on GRI Standards

The Sekisui Chemical Group calculates distribution status for each stakeholder based on its financial statements, using GRI and other accounting standards as a reference. We will accelerate CSR management by quantifying, visualizing and assessing the business and social value brought about by engagement with our stakeholders.

(Unit: Millions of yen)
Stakeholders Method of Calculating Amounts FY2015 FY2016 FY2017
Shareholders Dividends 14,299 16,063 19,064
Suppliers Cost of Sales, Selling Costs / General Administrative Costs (Excluding Personnel Costs) 814,883 778,623 811,642
Employees Labor costs, Salaries and allowances as part of sales costs and general administrative costs, Provisions for bonuses, Provisions for retirement pay 191,611 190,676 196,554
Local communities Donations 148 186 150
Global environment Environmental conservation costs 16,080 16,506 22,569
Government and administrative bodies Corporate taxes, local taxes, business taxes 15,007 23,396 23,393
Creditors Interest paid as part of costs apart from sales 1,147 610 533