President's Message
Combining the collective knowledge and capabilities of the DENSO Group to create a sustainable society
Great East Japan Earthquake
On March 11, 2011, a magnitude 9.0 earthquake struck off the coast of Sanriku and this unprecedented catastrophe left over 20,000 persons dead or missing.
I wish to express my heartfelt sympathy to the victims of the earthquake and to pay tribute to the people who devoted themselves to the rescue and recovery efforts immediately after the earthquake. Let me also convey my deepest appreciation for all the support provided to Japan from around the world.
The strong and sustained tremor on March 11 could also be felt at DENSO's headquarters in Kariya City, Aichi Prefecture. In the immediate aftermath of the earthquake, we set up a disaster response task force and worked to gather essential information. Although we confirmed the safety of our employees, we also learned that buildings at several sales companies and DENSO Group companies in the Tohoku and Kanto regions were partially damaged. At the same time, we also confirmed that around 600 plants operated by our suppliers were damaged and that DENSO's plants in the affected regions were able to operate only on a limited basis. I offer my deepest apologies for any inconveniences and concerns we caused our customers and suppliers.
During the last part of March, I traveled to the disaster areas and witnessed firsthand the horrific devastation, and this reaffirmed my awareness of the enormity of the destruction. At the same time, I resolved that above all we must place utmost priority on rebuilding and supporting the stricken regions.
Supporting the recovery of the disaster regions
Just after the earthquake, DENSO commenced various support activities spanning the entire Group. Among these, we dispatched employees to help provide recovery assistance to the severely ravaged city of Ishinomaki in Miyagi Prefecture. This relief activity originated from the suggestions of employees, who expressed their desire to "systematically and continuously support the recovery."
In undertaking this support initiative, top priority was given to assuring the safety of employees participating in the recovery operations while numerous departments collaborated to create a detailed plan and a support structure was established. Although our employees were to be deployed to Ishinomaki for an entire week, when we called for prospective applicants, numerous employees raised their hands without hesitation. I was also extremely gratified to see that the desire of these employees to help was respected at their workplaces and that they were given a warm sendoff even though their participation in this longterm activity would keep them away from their jobs.
DENSO's recovery support activities are spotlighted in the Special Features on pages 9-10 and pages 14-15.
Recovery of production levels and future initiatives
The automobile industry worked in close concert to quickly restore disrupted supply chains and made all-out efforts to rehabilitate damaged production plants. Thanks to these efforts, in July, DENSO was also able to restore its production to near pre-quake levels.
Nonetheless, we must still draw on the lessons from the recent major earthquake and promptly re-examine our earthquake countermeasures in the Tokai region, where we have a large concentration of production bases. Regardless of the type of natural catastrophe that strikes in the future, DENSO will give top priority to ensuring the safety of employees and must strive to minimize damages, quickly restore operations and continually supply parts, thereby fulfilling our responsibility as a parts manufacturer. To do so, it will be necessary to focus even more closely on strengthening risk management across the entire Group.
We report on our initiatives for strengthening risk management in the Special Feature on pages 11-12.
Our responsibilities as a global company
While devoting efforts to supporting the recovery of the disaster regions, we must also contribute to the creation of a sustainable society through the development of cuttingedge technologies and high-quality manufacturing(monozukuri).
As stated in DENSO Vision 2015, we aspire to be a company that can "contribute to the achievement of a future automotive society where there are fewer worries about environmental impacts and traffic accidents, and people can enjoy driving and the convenience of their cars to the full." I believe this is precisely the corporate social responsibility (CSR) that DENSO must fulfill through its business activities.
Specifically, under the Environmental Action Plan 2015 announced in November 2010, we have included enhanced measures and strengthened environmental responses in emerging countries, and based on the keywords "low carbon, recycling and coexistence," we will upgrade and expand initiatives such as undertaking the R&D of environmental technologies and products and reducing environmentally hazardous substances on a global scale.
In undertaking its business globally, DENSO must continue to have an indispensable presence for its stakeholders in each community. Therefore, as a good corporate citizen, it is essential that we share an interest in issues facing local communities and actively work toward solving these issues. As a prime example of these efforts, in fiscal 2011, approximately 54,000 employees in 25 countries and regions undertook community-based social contribution activities through DENSO Group Community Service Day. We report on social contribution activities on pages 51-52.
Actions of each employee form the basis of DENSO's CSR activities
November 2010 marked the launch of ISO 26000, the international standard for social responsibility that articulates shared issues worldwide that global companies must address. At the same time, the automobile industry must also respond to numerous issues globally that include eliminating traffic accidents and reducing environmental impacts. None of these issues can be solved overnight. However, if the over 120,000 DENSO employees seriously regard problems in society as issues that concern them and then move into action, I am confident we can contribute to the creation of a sustainable society even in some small way. Concurrently, I believe my mission is to cooperate closely with employees to build a company and workplaces where people take pride in helping to solve issues facing society through the work of each individual.
In this report, we have allocated a large number of pages as Special Features that explain how DENSO responded to the Great East Japan Earthquake. I believe that the true worth of DENSO's CSR activities will tested depending on how well we can utilize the lessons learned from the earthquake and then deal with related issues in the future.
In closing, I would like to hear the frank opinions and suggestions concerning this report from as many of our stakeholders as possible.
Nobuaki Katoh
President and CEO
DENSO Corporation
