Nissha Group’s CSR

Approach to CSR

Toward Realizing Our Mission

The Nissha Group’s corporate social responsibility (CSR) is to fulfill our mission: “We realize the enrichment of people’s lives by creating technology and developing it into economic and social value through the diverse capabilities, passion, and leadership of the global Nissha Group.”

Our brand statement “Empowering Your Vision” expresses the relationship of Co-existence between Nissha and our stakeholders. Both we and our customers, shareholders, employees, suppliers, and society have visions, and we mutually affect each other toward realizing it. We maximize our capabilities driven by our technology, passion, and leadership, and with the energy infused in us by our stakeholders, together create value for the future.

Nissha Group’s CSR

We identify two broad dimensions of CSR activities for simultaneously ensuring constant growth for Nissha and achieving a sustainable society. One is basic CSR, or fulfilling our responsibilities and obligations to maintain a presence in global society. The other is strategic CSR, or addressing the challenges of global society through our operations.

In basic CSR, we strive to reduce risks to business continuity by complying with the electronics and automotive industries’ code of conduct on labor, safety, the environment, ethics, and management system provided by the Responsible Business Alliance (RBA) as well as with our customers’ codes of conduct. In strategic CSR, we work to enhance our corporate value over the medium to long term by creating social value through our operations and improving our ESG rating.* We carry out activities in both of these areas with an eye to being a global corporate group that is recognized by society and chosen by our customers.

*ESG rating: A method of rating companies based on environmental, social, and governance performance.
*Nissha Philosophy: Our Mission, and Brand Statement can be viewed here.

CSR Management

CSR Committee

In order to link our CSR activities to the medium- to long-term enhancement of corporate value, in April 2015 we organized a CSR Committee chaired by the president. Eight subcommittees coordinate activities in areas such as labor and human rights, environmental safety, and corporate ethics and compliance toward the achievement of materiality goals. The contents of the activities, ongoing challenges, and activity policies in the following fiscal year are reported annually to the Board of Directors.

CSR Committee Organization Chart

CSR Committee Organization Chart

CSR Committee Members
Committee Chair: President and CEO
Vice Chair: Director of the Board, Senior Executive Vice President, Senior Director of Human Resources, General Affairs and Legal Affairs
Committee Members: Heads of subcommittees, general managers of business units, and heads of subcommittee secretariats
Secretary General: Corporate Social Responsibility Group Leader, Corporate Communications
Secretariat: Corporate Social Responsibility

Subcommittee Secretariats
Corporate Ethics and Compliance Subcommittee: Corporate Legal Affairs
Business Continuity Management Subcommittee: Corporate General Affairs
Labor and Human Rights Subcommittee: Corporate Human Resources and Employee Benefits
Environmental, Safety and Health Subcommittee: Corporate General Affairs
Information Security Subcommittee: Corporate Information Technology and Management
Trade Administration and Control Subcommittee: Corporate Supply Chain Management
Quality Subcommittee: Total Quality Management Office
Customer Satisfaction Improvement Subcommittee: Total Quality Management Office

Materiality

Identification of Material Issues

In promoting business activities based on our vision and strategies, we at the Nissha Group believe it is important to recognize our direct and indirect impacts on society, and face up to the challenges posed as a result.

To this end, we analyze the operations of the Nissha Group from multiple angles—in relation to the external environment, our internal resources, the challenges of global society, and so on—and identify a set of material topics. Specifically, this involves a quantitative assessment based on materiality to the Nissha Group and materiality to our stakeholders, referring to the Global Reporting Initiative (GRI) Standards, and then incorporates the views of in-house and outside experts. At present, materiality to the Nissha Group reflects the vision and basic strategies of the Sixth Medium-term Business Plan, in operation since the fiscal year ending December 2018, and materiality to our stakeholders primarily the contents of the Sustainable Development Goals (SDGs).

The process for identifying and approving material topics, and the results, are given in the tables below. Each CSR subcommittee draws up a detailed action program, key performance indicators (KPI), and target KPI values, and applies the plan-do-check-act (PDCA) cycle.

Process for Identification and Approval of Material Issues

Step 1
Identify topics
The impacts of the Nissha Group and its supply chain are extracted based on examples provided by the GRI Standards. Boundaries, or where the impact occurs, are identified.
Step 2
Prioritize
Topics from Step 1 are measured for materiality to the Nissha Group (based on the medium-term business plan) and materiality to our stakeholders (SDGs, external assessment), plotted on an analysis map, and prioritized based on degree of impact.
Step 3
Validate
Topics are validated especially from the standpoint of our stakeholders based on assessment by outside experts and interviews with CSR subcommittees.
Step 4
Determine materiality and KPI
For each material topic identified in steps 1 to 3, an action program, KPI, and target KPI values are set by CSR subcommittees and approved by the CSR Committee.

Boundaries of Material Topics

Categories Topics Boundaries
Inside of Nissha Group Suppliers
Environmental Climate change
Supplier environmental assessment
Social Complying with laws and regulations
Human rights in the workplace
Diversity and equal opportunity
Occupational health and safety
Supplier social assessment
Protection of customer's information
Others Responsibility for product and service continuation

Assessment of Map

Assessment of 46 Aspects

Material Issues and Subcommittee Responsible, Action Programs and SDGs

Material Issues Subcommittee Action Programs
(Excerpt)
Related SDGs
Complying with Laws and Regulations Corporate Ethics and Compliance Subcommittee ・Prepare group-wide training (all bases)
・Revise Corporate Ethics and Code of Conduct Manual, subsidiary edition
Responsibility for product and service continuation Business Continuity Management Subcommittee ・Develop disaster recovery manual
Diversity and Equal Opportunity Labor and Human Rights Subcommittee ・Employ international students, foreign nationals
・[Cont.] Organize seminars for general women employees
Human rights in the workplace Labor and Human Rights Subcommittee ・Promote use of harassment help desk
・Organize training for harassment help desk representatives
Occupational Health and Safety Environmental, Safety and Health Subcommittee ・Foster safety leaders through education for workplace heads
Climate Change Environmental, Safety and Health Subcommittee ・ Improve Carbon Disclosure Project (CDP) score  
Protection of customer's information Information Security Subcommittee ・ Meet customer demand for security
Supplier Social and Environmental Assessment CSR Committee Secretariat ・Conduct CSR audits on suppliers

Nissha Group's Stakeholders

We identify the stakeholders that support Nissha Group operations as our customers, shareholders, employees, suppliers, and society. Toward realizing our Mission, we incorporate the voice of our stakeholders into business activities that contribute to a sustainable society. Both we and our stakeholders have a clear vision, and we mutually affect each other toward realizing it. Our aim is to work together and create value for the future.

Circle of Trust

Customers

Nissha Group’s businesses—Industrial Materials, Devices, Medical Technology, and Information and Communication—serve customers, centering on companies, spanning a broad range of fields.
We approach challenges seriously from the standpoint of our customers, resolve issues together, and offer optimal solutions. With a quality control system in place, we seek to produce quality products and services that win our customers’ satisfaction.

◆Communication channels
Marketing activities in daily operations
Activities to enhance customer satisfaction
Information provided for CSR survey
Information provided about conflict minerals
Products and services information provided by website
Supplier responsibility (SR) audits by customers

Shareholders

We have a total of 50,810,369 outstanding shares and 7,402 shareholders. In a breakdown of shareholders by type, 40.6% are Japanese financial institutions and securities firms, 26.2% foreign institutions and individuals, 20.5% other Japanese corporations, 12.5% Japanese individuals and others, and 0.2% treasury stock (as of the end of December 2017).
In addition to disclosing information, we create opportunities to meet directly and exchange dialogue with our shareholders and investors through IR events and one-on-one briefings. Feedback and comments are reported regularly from IR representatives to management as well as at Board of Directors meetings, and used as a valuable resource for enhancing our corporate value.

◆Communication channels
Shareholders’ meetings
Management briefings following shareholders’ meetings
Financial results presentations and teleconferences for institutional investors
One-on-one briefings for institutional investors
Response to individual inquiries
Various materials (reports) published for shareholders and investors
IR information provided via the Nissha website
Information to investigation institutions for such as sustainable investment

Employees

The Nissha Group has 5,322 employees. The number of employees in a breakdown by region, 44.2% work in Japan, 13.1% in Asia, 18.8% in North America, 9.9% in Europe, and 14.0% in Central and South America (as of the end of December 2017).
We promote the creation of safe, comfortable workplaces and offer support for diverse work styles, respecting our employees’ human rights diversity from a global perspective. We at Nissha Group believe our employees are our most important management resources, and aim to achieve growth for both the company and our employees.

◆Communication channels
Labor-management meetings
Safety and health committees
Workplace improvement committee
Education and training
Personnel evaluation and interviews
Hotline (for reporting to outside the company)
Harassment help desk
Employee awareness survey and interviews

Suppliers

Nissha Group’s global operations revolve around procurement activities and engagement with a large number of suppliers.
We strive to build partnerships of co-existence and co-prosperity with our suppliers, and create corporate value founded on integrity. We seek to evaluate our suppliers fairly, impartially, and comprehensively at all times, and promote CSR procurement.

◆Communication channels
Procurement activities in daily operations
CSR procurement briefings
ESG check sheets
CSR survey and auditing
In-house exhibitions and seminars themed around supplier products and technologies

Society

The Nissha Group has 16 bases in Japan and 44 overseas (as of the end of March 2018), each of which carries out business activities with respect for the culture and climate of the region in which it operates.
We aim for widespread co-existence based on relationships of mutual trust with society. We promote communication with local communities not only to fulfill our basic responsibilities as a corporation but also to be a company that is needed by society. We strive to be aware of global social issues and play a role in resolving them.

◆Communication channels
Exchange events with community councils and community people
Factory and facility tours
Cleanup activities in factory areas
Next-generation support activities
Support and promotion of arts and culture
Social contribution activities in collaboration with NPOs
Employees’ participation in volunteer activities

External Assessment

Major examples of external assessment in fiscal year ended December 2018 are given below (Nissha Group in Japan).

Date Certification/award Company/base Details
November 2017 59th National Catalog Contest: 6 awards including
• Minister of Education, Culture, Sports, Science and Technology Award (Gold Prize, Catalog Category)
• Director-General of Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry Award (Gold Prize, Catalog Category)
Nissha Printing Communications, Inc.
Nitec Printing Co., Ltd.
A total of six catalogs designed, produced, or printed by the Nissha Group won awards in the 59th National Catalog Contest, co-hosted by the Japan Federation of Printing Industries and Fuji Sankei Business-i.
December 2017 69th National Calendar Contest: 4 awards including
• Yukimasa Okumura Award (Silver Prize, Category 3; Silver Prize, Category 2)
Nissha Printing Communications, Inc.
Nitec Printing Co., Ltd.
A total of four calendars designed, produced, or printed by the Nissha Group won awards in the 69th National Calendar Contest, co-hosted by the Japan Federation of Printing Industries and Fuji Sankei Business-i.

Acquisition status of ISO certification and others is given below (Nissha Group, as of the end of December 2017).

Subject Areas Standards
ISO/TS16949
IATF16949
ISO9001 ISO14001 OHSAS18001
ISO45001
ISO27001 ISO50001 ISO13485 Others
Nissha Co., Ltd. Global Headquarters       ○ *1 *2        
Nissha Co., Ltd. Tokyo Division Headquarters   *1          
Nissha Co., Ltd. Kameoka Site            
Nitec Industries, Inc. Koka Factory          
Nitec Precision and Technologies, Inc. Himeji Factory          
Nitec Precision and Technologies, Inc. Kaga Factory          
Nitec Precision and Technologies, Inc. Tsu Factory                
Nitec Precision and Technologies, Inc. Kyoto Factory       ○        
Nissha FIS, Inc.          
Nissha Printing Communications, Inc. Headquarters / Kyoto   *1         FSC COC
Nissha Printing Communications, Inc. Tokyo Division Headquarters   *1         FSC COC
Nissha Printing Communications, Inc. Osaka Division Headquarters   *1         FSC COC
Nitec Printing Co., Ltd. Headquarters / Kyoto Factory           FSC COC
Nitec Printing Co., Ltd. Yachiyo Factory         FSC COC
Nissha F8, Inc.   *3          
Nissha Business Service, Inc.          
Eimo Technologies, Inc.              
Nissha Si-Cal Technologies, Inc.              
Nissha PMX Technologies, S.A. de C.V.              
Graphic Controls Acquisition Corp.           93/42/EEC
Nissha Schuster Kunststofftechnik          
Nissha Back Stickers                   
AR Metallizing N.V. – Genk, Belgium             FSC COC
AR Metallizing Srl. - Casalgrasso, Italy         FSC COC
AR Metallizing Ltd. - Franklin, MA USA             FSC COC
Málaga Produtos Metalizados Ltda.- Osasco, Brazil         FSC COC
Nissha (Kunshan) Precision IMD Mold Co., Ltd.          
Guangzhou Nissha High Precision Plastics Co., Ltd.            
Nissha Precision Technologies Malaysia Sdn. Bhd.          

*1. Management divisions are excluded from the scope of certification.
*2. Only management divisions and design and product development divisions have obtained certification.
*3. Only the Kyoto site has obtained certification.

United Nations Global Compact

UN Global Compact Logo

On April 3, 2012, Nissha Co., Ltd. joined the United Nations Global Compact. The Global Compact is a voluntary initiative based on 10 principles in the area of human rights, labor, the environment, and anti-corruption. Its purpose is to have various companies show responsible and creative leadership, and thereby act as good members of society and participate in creating a global framework for sustainable growth.

Signatory companies are required to express within and outside the company the commitment of top management, establish a CSR framework, make continuous improvements aiming for higher levels of management and CSR, and submit annual reports on the status and results of activities in the format of a Communication on Progress (COP).

At Nissha Group, we have in place various targets based on the 10 principles of the Global Compact and work daily toward achieving them with an eye to meeting the needs of global society. We disclose information about our activities in CSR reports, published on the Nissha Group website.

The Ten Principles of the UN Global Compact

Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: make sure that they are not complicit in human rights abuses.

Labour
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

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