CSR Management
Basic stance
In our corporate philosophy, we describe our mission as "contributing to a better world by creating value together with a vision for the future." We adopted DENSO Vision 2015, a long-term management vision, in 2004 to guide our efforts in putting this philosophy into practice. This vision meshes perfectly with the building of a sustainable society.
Cooperating, collaborating and sharing values with our many stakeholders are indispensable to achieving this vision based on corporate behavior that earns the trust and support of society. To ensure that all Group companies conducting business worldwide put this philosophy into practice, we adopted the DENSO Group Declaration of Corporate Behavior in April 2006 (see following page), making clear our responsibility to stakeholders. We have placed corporate social responsibility (CSR) at the core of our management and are working to contribute to building a sustainable society through our business activities.
Promotion structure
In 2006, we established the CSR Promotion Meeting (secretariat: CSR Promotion Center), which is chaired by the president and in which the basic policies behind CSR activities are discussed and examined. The meeting is held twice yearly to set direction for and make decisions on CSR management and to confirm the progress of CSR-related activities.
In 2009, we shifted from a traditional emphasis on "priority areas and fundamental areas" to a new framework emphasizing "stakeholder satisfaction" and "risk management." This means we are focusing more intently on a stakeholder perspective in policies.
CSR framework
DENSO aims to be a trusted company through corporate activities that place value on stakeholders and advances initiatives in this regard in seven different areas.
Long-term activity plan
To steadily promote corporate behavior aimed at building a sustainable society, we have analyzed DENSO's strengths and weaknesses. Our goal is to expand the scope of CSR activities to include the supply chain (all Group companies and primary suppliers) and ensure that individual Group employees are aware of and involved in those activities by fiscal 2011. We are also working to improve CSR activities on an ongoing basis by establishing key performance indicators (KPI) for each area, conducting a CSR Survey (begun in fiscal 2007) to assess employees' understanding and the extent of implementation, and practicing the PDCA (Plan, Do, Check, Action) cycle.
Roadmap for promoting activities throughout the supply chain (Group and primary suppliers) and extending individual Group employees' awareness and involvement
Fiscal 2010 activities
(1) Expansion of the scope of CSR initiatives to include Group companies
DENSO virtually completed establishment of the foundations of a CSR management system in each company, including those in our supply chain, by the end of fiscal 2009. Specifically, 117 of our consolidated subsidiaries and 720 of our primary domestic suppliers have approved the DENSO Group Declaration of Corporate Behavior as the highest authority guiding decisionmaking, created CSR leader positions and developed activity plans through fiscal 2011. Going forward, we will request our overseas suppliers to take the same steps.
Also, as a means to enhance CSR initiatives at domestic Group companies, we convened a CSR Leaders' Meeting in August 2009 that included participants from 41 companies. At the meeting, leaders from core DENSO Corporation companies and Group companies exchanged ideas and information on risk management related to a business recovery plan assuming a major earthquake, and combating new strains of infl uenza, threats to our corporate reputation, CO2 reduction, preservation of biodiversity and the employment ratio of persons with disabilities.
(2) Promotion of activities designed to increase involvement and raise awareness
DENSO formulated a Code of Conduct for DENSO Group Associates for Japan, North America, Europe and China that takes into consideration the culture and history of each region. It is being used as a tool to examine one's own behavior at every opportunity. DENSO Corporation has held 18 CSR-related lectures (approximately 5,000 participants) since fiscal 2007 mainly for directors and executive officers with the aim of increasing awareness and understanding of the importance of CSR.
Since fiscal 2010, we have increased efforts to improve the level of CSR and help individuals shift from a phase of mere recognition of CSR to one of action. Specifically, we released a picture book entitled Building Happiness with DEN and SO that gives insights on how to link CSR with daily work and held a presentation meeting for management-level employees, who then discussed the contents at their respective workplaces. We also invited the families of employees and elementary school students from schools near DENSO headquarters (200 people) to tour the Company, and we explained our CSR initiatives using the picture book as we walked around eco-product displays and other areas.
Opinions of elementary school children taken from a survey
- It was fun and I learned a lot on the tour and in the quiz.
- The picture book, video and explanations made me realize that people at DENSO think about products and users every day in their work.
- I didn't know anything about DENSO before, but now I think it's a good company. I hope you keep doing your best to develop products in the future.
(3) ISO26000 analysis and examination
The International Organization for Standardization (ISO) has formulated an international standard providing guidelines for social responsibility (SR) at global organizations. The guidance standard is scheduled to be issued in autumn 2010. Various stakeholder groups are participating in the formulation process: government, industry, consumers, non-profit organizations (NPOs) and non-governmental organizations (NGOs), specialists and others. The standard is expected to provide direction to companies in their implementation of CSR activities.
Closely monitoring developments, DENSO reviewed its CSR activities at the CSR Promotion Meeting in fiscal 2010 based on a draft of the ISO26000 standard concerning the environment, human rights, labor practices, organizational governance, fair business practices, community participation and social development, and consumer issues. Shared challenges recognized and identified at the meeting will be refl ected in future CSR policies and measures.
Review of progress
We conduct a CSR Survey every year to review and assess progress in the implementation of activities and understanding among employees. Results were down in certain areas of the survey sent to around 3,000 DENSO Corporation employees in fiscal 2010.
In response, we conducted a detailed check and analysis of the contents in the opinion and requirements column on the survey and formed a joint team mainly comprising members from the CSR Promotion Center, Legal Department and Human Resources Department to visit work sites and listen to the thoughts of CSR leaders and identify points of concern. Results of the interviews showed that many employees felt that CSR activities were primarily the responsibility of the Company, not the individual.
This issue was then discussed at the CSR Promotion Meeting in order to examine possible solutions. A decision was made to take new steps to link company policy with individual action from fiscal 2011. Specifically, this means explaining CSR activities in an easy-to-understand manner; shifting to regular publication of CSR News, which includes information that can be discussed and utilized at sites; and holding new events related to environmental conservation in which employees can easily take part.
Outside lecturers were invited to talk at a CSR Seminar in April 2010 mainly for CSR leaders from each department on how to vitalize CSR activities in small groups. Around 200 leaders took part and learned how to effectively promote CSR activities in the workplace. We will continue to hold workshops for CSR leaders and work to foster a corporate culture that encourages CSR activities on a daily basis.
Results from CSR Survey (excerpt)
| Item | Question content | 2007 | 2008 | 2009 |
|---|---|---|---|---|
| Guidelines | Pay attention to application of the code of conduct | 72% | 75% | 68% |
| Spread of CSR in workplace | Increased interest in CSR in the workplace | 51% | 57% | 52% |
| Environmental conservation | Work to reduce CO2 on the job | 79% | 80% | 73% |
| Workplace safety | Feel that safety awareness in the workplace is increasing | 76% | 77% | 77% |
| Respect for employees | Interest in female participation is rising in the workplace | 49% | 51% | 51% |
