DOWA CSR REPORT 2017

SocietySociety

The DOWA Group aims to be a company trusted by all stakeholders for sustainable development and is taking initiatives to enhance the relationship with the society through its CSR activities.

01Together with Our Customers and Business Partners

The DOWA group strives to build long-term relationships of trust with business partners to improve customer satisfaction through the provision of better products and services. We are also promoting CSR efforts by supply chain, including environmental conservation and improvement of the working environment.

Supply Chain Management

The DOWA Group promotes CSR throughout the whole supply chain by distributing to business partners the “DOWA Group CSR Procurement Guidelines” that pulls together our CSR procurement policies and code of conduct, and by seeking understanding about our company’s approach to CSR. These guidelines are translated into English, Chinese and Thai and distributed to DOWA offices overseas.
In FY 2016, in order to confirm the status of CSR efforts, we distributed a self-check questionnaire to about 80 major business partners, and collected 93% of them. We sent a feedback report to business partners who responded, and reported our evaluation of the current situation. In addition, we conducted CSR inspections for nine important suppliers to confirm the actual CSR status, and checked their compatibility with our CSR procurement guidelines. We pointed out several things about “health and safety”, such as the wearing of protective equipment and the inspection of firefighting equipment, and about the “environment”, such as waste management, but overall we confirmed that the results were generally good.
Regarding the importance of CSR in the supply chain, we will work to further improve CSR while strengthening the partnership with suppliers by getting their understanding.

Quality Control

At the DOWA Group, we position “quality” as an important management standard for manufacturing. Major manufacturing plants have obtained international standard ISO 9001 certification for our quality control systems. We strive to improve the quality of products and services by continuously operating these quality control systems based on PDCA.
In addition, as an initiative to strengthen quality control, we put effort into confirming the quality of procured items. In cooperation with suppliers, we aim to ensure the quality of procured items from the aspect of quality and technology by implementing supplier surveys and inspections at appropriate intervals.

Response to Comments and Opinions

We strive to supply products that are satisfactory to the customers by improving the product promptly and appropriately in response to the opinion and inquiries of the customer.
Improving the information sharing and management system, conducting evaluation by classifying and analyzing the information gathered at each business site have been leading to reform, improvement and development of products and services.

Response to Conflict Minerals

The DOWA Group, which deals with non-ferrous metals as its main product, recognizes as an important CSR challenge the responsibility of companies associated with conflict minerals. We are working to ensure transparency of the supply chain in our procurement activities, and to practice responsible mineral procurement. In FY 2016, in accordance with our conflict mineral management policy, we continued to survey business partners and respond to customer inquiries. Furthermore, to promote responsible mineral procurement, we have taken up a program for certifying smelters that do not handle conflict minerals (the CFS certification system). Two of our companies, Kosaka Smelting & Refining (gold and tin) and Eco-System Recycling (gold), have acquired CFS certification, and we are striving to fulfill our procurement responsibility as a material manufacturer.

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02Together With the Regional Society

With initiatives in the social field, the DOWA Group is working on regional contributions as a priority measure. In each of our domestic and overseas bases, we are actively developing community-based CSR activities such as factory tours, accepting interns, hosting sports events and communicating with local communities in order to progress and develop together with the region.

Nurturing the Next Generation

Elementary School Visits

Eco-System Chiba, which does waste treatment in Sodegaura, Chiba Prefecture, visits elementary schools in the city to talk about the environment. In FY 2016, they visited fifth and six graders at two elementary schools in the city with the theme of “Let’s get rid of illegal dumping and aim for a clean society by obeying the rules”. They conducted classes that incorporated quizzes and games in order to teach in a fun manner about the problem of illegal dumping, and the responsibility of those who dispose of things. With a card game to understand the mechanism of illegal dumping, they positively shared opinions about how to reduce illegal dumping.
These school visits are now in their sixth year, and they started as a catalyst for children, who will lead the next generation, to learn about the environment. Every year the employees of Eco-System Chiba serve as instructors, holding quizzes and presentations about how to dispose of garbage. They will continue these school visits in the future as an opportunity to make the children feel close to the “problem of waste”.

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Akita Prefecture The DOWA Cup Junior Cross-Country
Ski Tournament at Lake Towada

The DOWA Cup that is held at Lake Towada in Akita Prefecture is a historic junior cross-country ski tournament that celebrated its 27th anniversary in FY 2016. Every year, many children participate from elementary and junior high schools in the three Tohoku region prefectures, and past participants have gone on to compete at international competitions, such as the Olympics. It is certified as an official event of the Ski Association of Akita.
About 130 staff, including DOWA Group employees and people from neighborhood councils and local ski clubs, cooperate on cleaning the site, developing the course, setting up the venue and the final tidying up, which can take over a month. For over a quarter of a century, this tournament has been an indispensible event for the DOWA Group to deepen ties with the local community.

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Disaster Recovery Support

Responding to the Kumamoto Earthquake

DOWA Eco-System is a member of Japan Disaster Treatment Systems that is part of the disaster waste treatment support network of the Ministry of the Environment. It provided local support after the Kumamoto earthquake in April 2016. Utilizing its experience and expertise, the DOWA Group, which also helped with earthquake waste treatment after the 2011 Tohoku earthquake and tsunami, dispatched personnel to the association of waste treatment-related companies from inside and outside of Kumamoto Prefecture. We provided support for the construction and operation of a secondary temporary storage site for the massive amounts of waste material and debris from the earthquake. At Act-B Recycling Co., Ltd., where we carry out recycling of home appliances in Minamata, Kumamoto Prefecture, in response to a request for support from the Ministry of the Environment and Kumamoto Prefecture, we sorted, transported and disposed of home appliances impacted by the quake, especially in areas where there was considerable damage. For 34 days from April to May, including the Golden Week holiday period, we dispatched 10 personnel each day to the site, with a total of 200 employees taking part in the support. At the disaster waste collection facility, we sorted and organized depending on whether it was possible for the home appliance to be recycled. In the end, we were able to recycle 12,404 televisions, refrigerators, washing machines and air conditioners.

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03Together with Employees

The DOWA group sets forth Standards of Conduct that human resources are the basis of business activities and employees should be evaluated with their ability to conduct their jobs regardless of education, age and gender. We have taken various initiatives with the following goals so that employees can exercise their full potential.

Employment Status

The DOWA Group promotes the appropriate allocation of personnel according to our business plans, and we are working to employ diverse talent with the necessary skills for business development.
At the end of FY 2016 (March 31st, 2017), the number of employees in Japan was 6,072, up 194 people from the year before. Of the regular employees in Japan, there were 3,787 men (92% of the total) and 321 women (8%). With globalization in recent years, the proportion of employees at offices overseas is increasing, and the number of employees overseas in FY 2016 was about 33% of the total.

Employment status in Japan

FY

Classification 

FY 2014 FY 2015 FY 2016
Male Female Male Female Male Female
Regular
employees
in Japan
Directors
130 0 121 1 128 1
Managers 735 12 799 9 758 9
Ordinary Employees
2,786 306 2,828 302 2,901 311
Non-regular
employees
in Japan
Dispatched employees
479 529 633
Part-time 924 314 802 318 1,050 281
Total 5,686 5,709 6,072

Region – wise Number of employees Region

FY

Classification 

FY 2014 FY 2015 FY 2016
Japan
5,686 5,878 6,072

Asia

(Other than Japan)

2,903 2,897 2,899
Europe 16 22 23
North America
92 96 96
Central & South America 3 1 1
Total 8,700 8,894 9,091
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Personnel Training and Utilization

DOWA group takes efforts to continuously conduct training at every workplace from the aspect of personnel training, aiming at “continuing to be a valued personnel team that works hard for global business” and is expanding its personnel training and activity policy through promoting the strengthening plan for young employees as On The Job Training (OJT), expanding practical training opportunities, promoting experience of different professional duties (planned change), planning voluntary staff assignment etc.

Main Achievements of FY 2016

In addition to stratified education and specialized training, the DOWA group as a whole conducts extensive training about technology, environment and safety at every office. In FY 2016, in addition to enhancing selective educational opportunities for nurturing the next generation of leaders at every level, we focused on efforts to establish a culture that cultivates human resources.

Plan for FY 2017

Every year we review training with the aim of achieving education that is more strategic and essential in order to nurture talent capable of adapting to the rapidly changing times and environment. In FY 2017, we are planning to introduce measures to strengthen on-the-job training (OJT) for new and young people in an effort to establish a culture that cultivates human resources. In addition, we plan to develop existing educational measures to expand their area of influence so that as much as possible we can be a human resource group that responds to changes in the external environment, such as the acceleration of diversity or global expansion.

Stratified Training & Selective Education

Target groups Training details Number of
participants
(People / FY 2016)
Total training time
(Hours / FY 2016)
*Training time only
Management staff(continuing) Top management training 57 462
Next-term management staff(continuing) Business leader development training 16 1,440
Administrative staff  (continuing) Management training & training to develop one’s staff 67 2,275
Mid-level employees (continuing) Global Challenge Program  9 4,185
Mid-level employees (new) Problem solving & thinking ability special training program 16 320
Mid-level employees (continuing) Leadership training 48 1,139
Production site supervisors (new) Development program for front-line supervisors 20 1,650
Up to 3 years after joining the compan(continuing) New employee training, OJT and follow up training (skill improvement and self-establishment within the organization)
222 14,605

Just and Fair Evaluation and Treatment

In DOWA group, just and fair evaluation and treatment are practiced based on the following policy according to the idea of “valuation by the ability to take the work forward” which is present in the code of conduct. Initiatives are being taken with focus on circumstances that are utilized for training.

The appraisers and persons being appraised must have thorough understanding of structure and standards of company system and they must continue to put in efforts for utilizing this knowledge for appraising and training.

Sharing of organizational goals and improving of business execution ability has been planned while showing the ability and conduct required for improving personal ranking.

Training for appraisers and persons being appraised is positioned as a group-wide initiative, and by creating ongoing educational opportunities, we strive for fair evaluation, treatment and training. From FY 2015, we have been conducting briefing sessions for appraisers and trainings for persons being appraised at business establishments throughout the country, and we continue to consider training for new managers as priority.
System survey is implemented every year to evaluate the status of system and operations. The extracted tasks are newly added as explanatory items in the briefing session for appraisers and evaluator training of the following year and we are working on a promotion of employee's understanding towards system and on appropriate operation.

Career Matching System

A system that has been introduced with the aim of developing and supporting career of employees and fluidizing human resources, wherein the subject person conducts a PR (results achieved till now and desire to materialize these results) for his career and a change is made if both agree in the interview with the official of the interested company. The subject person can directly express his desire to change to the recruiting department without going through his superiors and his own department. Employees in various industries are starting a career in a new department every year by using this system.

Promoting Diversity

Amid global expansion or expansion of business areas in the group, employees with multifaceted personality showing their ability is closely linked to the growth of the company.

 

Expansion of Global Human Resources Pool

DOWA Group is progressing from recruiting stage to planning based on the concept of working globally without depending upon nationality as a part of promoting diversity. While recruiting new graduates, Japanese overseas students graduating from universities abroad or foreign students that graduated in Japan are recruited. Training is given for making them familiar with the concept and policy of this company with consideration of human rights at the time of recruitment that is happening rapidly with expansion of employment of personnel from various countries and regions.
Training is conducted prior to appointment even for employees that are newly appointed in foreign offices and diversity reception training such as understanding different culture is also conducted. Starting in FY 2015, we are launching a global challenge program including on-site training at overseas offices for the purpose of expanding talented personnel who can be active globally. In future too, we plan to expand our global human resources pool.

Education of Overseas Staff

The DOWA group promotes education of the entire group including employees in offices overseas. In FY 2016, staff hired in China, Thailand and Indonesia came to Japan for training about such things as safety, compliance and equipment maintenance. The training was held at our headquarters, major business offices and training centers. In addition to this, the five operating companies have invited locally hired staff to Japan for certain periods of technical training.

Promoting Participation by Women

While the number of women hired for regular positions is 10% to 20% of all those hired, which is not many, the ratio of women employees is increasing in the long term due to changes in the business and workplace environments.
It could be said that the foundation for women to actively participate is in place as evaluations for recruitment; promotion and advancement are made according to abilities and without distinction for gender. In FY 2016, in order to make this foundation stronger, we implemented an educational program for managers who have female subordinates. The company and employees are united in working to raise awareness so it is possible for each member of a diverse workforce to maximize their abilities. In FY 2017, we plan to revise the system and expand measures for changing awareness.

Utilization of Veteran Employees

We have revised the re-employment system from FY 2013 and we are setting up an environment where employees who have reached their retirement age and who wish to work in the DOWA group even after retirement can work with more motivation according to their role in the reformed system. Further, a seminar is held for employees who have reached retirement age with the goal of providing information on life plan after retirement and in FY 2016 it was attended by more than 70 employees.

Employment for Physically Challenged

In FY 2016, we were unable to achieve the employment rate across the group for the physically challenged.
An easy-to-work environment cannot be materialized at our refining and metallic processing sites for the physically challenged, therefore, rather than aiming at a uniform increase at all business sites, we shall take initiatives to promote a high-quality working environment in employment offices and further workplace experience so that we can work on increasing the employment in parallel with the utilization of the recruitment company that specializes in hiring physically challenged personnel.

 

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Work-Life Balance

The DOWA group endeavors to improve the workplace for employees. Our work-life balance program aims at helping all employees to exercise their abilities to the fullest extent according to their lifestyle both at work and at home. We implemented a more flexible working system like flexible working hours and leave of absence system for raising children and caretaking of family members.

Supporting Diverse Ways of Working

The DOWA Group has introduced a flextime system without core time so that flexible working hours are possible. In addition to a leave system where one can get leave for volunteer activities, or special incentive leave for working a certain number of years, we have put in place support measures beyond those stipulated by the law, such as paid leave for caring for sick children (up to five days), a voluntary leave of absence program for childbirth and childcare, and a partial subsidy system for childcare expenses.

System Use Status

No. of system users is rising every year and persons taking childcare leave in FY 2016 were 28 women. There were 24 men and 24 women who availed nursing leave for children.
As the situation of availing of the annual salaried leave, an average 63% of 20 average granted days were taken. We are working towards improving availing ratio through promoting planned annual holidays and asking for feedback on availing situation throughout the year according to the working situation in each of the offices.

グラフ

Promotion of Measures to Reduce Working Hours

At offices in Japan, we have reached a labor-management agreement about overtime work in accordance with the laws and regulations, and have notified the governing administrative authorities. From FY 2014, we have revised the work management system, and made obligatory the submission of an improvement plan to managers when working hours have exceeded a certain amount. We have implemented labor management education targeting new managers who are the main constituents for the management of working hours. In addition, in FY 2016 we set up an advisory committee on labor and management to make recommendations about policies and standards for the management of working hours. Based on these policies and standards, in 2017 we intend to further focus on reducing working hours for all group companies.

In-house Questionnaire

The DOWA Group conducts a questionnaire on work-life balance for new employees every year. In FY 2016, there was high interest in a flexible working time system, with more than 90% wanting to utilize flextime and 75% wanting to use short working hours. Overall, there was also high interest in the system for work-life balance, and regardless of gender, the survey found an eagerness to balance work and family.
Among the initiatives for work-life balance at the DOWA Group, “flextime without core time” and “the initiative to improve the rate of taking paid vacations” were both valued.
We will keep working on work-life balance initiatives while referring to the results of this questionnaire.

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