Nissha’s CSR

Approach to CSR

Toward Realizing Our Corporate Mission

The Nissha Group’s CSR is to realize our corporate mission of “pursuing a mutually trustful Co-existence with society through our business activities utilizing a unique technology development, based on Printing as a core.” As a specific means to realize this corporate mission, our brand statement “Empowering Your Vision” expresses the ideal relationship of co-existence between Nissha and our stakeholders—a relationship in which we mutually affect each other toward realizing our respective visions.

Basic CSR and Strategic CSR

We define the target areas of our CSR activities as basic CSR and strategic CSR. In basic CSR, we strive to reduce CSR risks by promoting compliance with the global code of conduct provided by the Electronic Industry Citizenship Coalition (EICC) as well as with customer demand. In strategic CSR, we work to enhance our corporate value over the medium to long term by determining material issues and promoting initiatives to resolve them.

Management by CSR Committee

In April 2015 we organized a CSR Committee, chaired by the president, with eight subcommittees dedicated to areas such as labor and human rights, the environment, safety and health, and corporate ethics and compliance. In addition to convening once a year, the CSR Committee conducts management reviews, and reports and offers suggestions to the Board of Directors. Each subcommittee operates a management system and works on its respective basic CSR topics and strategic CSR topics. The progress of activities is reported as needed to its secretariat. Initiatives related to strategic CSR topics, in particular, are included in Monthly Business Review (MBR) reports for steady execution as more pertinent management issues. The CSR Committee convenes once a year in the presence of the president, and members centering on the secretariat conduct management reviews.

Activities for Stakeholders

We identify the stakeholders that support Nissha operations as our customers, shareholders, employees, suppliers, and society. Toward realizing our corporate 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.

*Nissha’s corporate mission and brand statement can be viewed here.
Corporate Philosophy and Nissha Brand

CSR Management

The CSR Committee convenes once a year in the presence of the president. Members centering on the secretariat conduct management reviews, reporting important matters and offering suggestions to the Board of Directors. In fiscal year 2016, having approved the initiatives of each subcommittee, the CSR Committee identified material issues, deliberated on matters such as expansion of women’s participation in business and business continuity plan (BCP) in MBR throughout the year, and managed the progress of activities. The results of the year-end MBR were reported to the Board of Directors.

The individual subcommittees of the CSR Committee, as a rule, build and operate a management system. Quality, Environmental, Information Security, and other subcommittees that already have ISO certification are working to make continuous improvements and enhance performance. Following a CSR audit conducted by our customers in fiscal year 2015, the Corporate Ethics and Compliance, and Labor and Human Rights subcommittees started operating a management system in fiscal year 2016. In the three years from fiscal year 2016 covered by the Fifth Medium-term Business Plan, we will build and operate management systems based on the EICC Code of Conduct throughout the Nissha Group including overseas bases and at major suppliers.

CSR Committee Organization Chart (Fiscal Year 2017)

CSR Committee Organization Chart (Fiscal Year 2017)

CSR Committee Members
Committee Chair: President and CEO
Vice Chair: Director, Member 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: Senior Director of 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

*Business Continuity Planning Subcommittee changed the designation to Business Contiuity Management Subcommittee on October 1, 2016.

Nissha’s CSR Materiality

In order to realize co-existence with society and enhance our corporate value over the medium to long term, we strive to identify and prioritize material issues related to CSR. Individual topics are measured for impact on our stakeholders and impact on Nissha, those with high impact on both are identified as material issues, and initiatives are led by the relevant subcommittee of the CSR Committee.

Identification of Material Issues

We use as reference the G4 Sustainability Reporting Guidelines, developed by the Global Reporting Initiative (GRI), which requires identification of material issues with impact on the company and its stakeholders, and reporting on the process of identification and the status of initiatives.

At Nissha, the CSR Committee led efforts to identify material issues in fiscal year 2016, and each subcommittee set targets and started working toward them since fiscal year 2017. The process of identifying material issues is given in the table below.

Process for Identification of Material Issues

Step 1
Identify topics
Topics with an impact on Nissha and on our supply chain are extracted, consulting the 46 Aspects of the GRI G4 guidelines.
Step 2
Prioritize
Individual topics from Step 1 are measured for impact on our stakeholders and impact on Nissha, and plotted on an analysis map. Topics are prioritized based on the degree of impact.
Step 3
Validate
Topics are validated from the standpoint of our stakeholders based on evaluation by outside experts as well as interviews with three independent directors.
Step 4
Determine materiality
Materiality is determined with approval from the CSR Committee. For priority initiatives, key performance indicators (KPI) are set for each subcommittee.
Material issues will be reviewed in management reviews in FY2017, and the results will be reflected in initiatives in the following year onward.

Assessment of 46 Aspects

Assessment of 46 Aspects

Boundaries of Material Aspects

Categories Aspects Boundaries
Inside of Nissha Group Suppliers
Environmental Energy  
Emissions
Effluents and Waste
Compliance (Environmental)
Transport  
Supplier Environmental Assessment
Social Labor Practices and Decent Work Employment
Occupational Health and Safety
Training and Education
Diversity and Equal Opportunity
Supplier Assessment for Labor Practices
Human Rights Non-discrimination
Forced or Compulsory Labor
Supplier Human Rights Assessment
Society Anti-corruption
Compliance (Society)
Supplier Assessment for Impacts on Society
Product Responsibility Customer Privacy
Compliance (Product Responsibility)

Material Issues and Subcommittee Responsible

Material Issues Subcommittee
Compliance *1 Corporate Ethics and Compliance Subcommittee
Non-discrimination
Forced or Compulsory Labor
Diversity and Equal Opportunity
Training and Education
Employment
Labor and Human Rights Subcommittee
Occupational Health and Safety Environmental, Safety and Health Subcommittee
Effluents and Waste
Energy
Emissions
Transport
Environmental, Safety and Health Subcommittee
Customer Privacy Information Security Subcommittee
Anti-corruption
Supplier Assessment *2
CSR Committee Secretariat (cross-sectoral approach)

*1  Compliance (Environmental), Compliance (Society) and Compliance (Product Responsibility) are summarized in Compliance.
*2  Supplier Environmental Assessment, Supplier Assessment for Labor Practices, Supplier Human Rights Assessment and Supplier Assessment for Impacts on Society are summarized in Supplier Assessment.

Nissha's Stakeholders

We identify the stakeholders that support Nissha operations as our customers, shareholders, employees, suppliers, and society. Toward realizing our corporate 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.

Nissha's Circle of Trust

Nissha’s Circle of Trust

Customers

Nissha’s businesses—Industrial Materials, Devices, Life Innovation, 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 about CSR reviews
Information provided about conflict minerals
Products and services provided by website
Supplier responsibility (SR) audits by customers

Shareholders

We have a total of 45,029,493 outstanding shares and 8,048 shareholders. In a breakdown of shareholders by type, 30.7% are Japanese financial institutions and securities firms, 23.7% other Japanese corporations, 15.8% Japanese individuals and others, 25.1% foreign institutions and individuals, and 4.7% treasury stock (as of the end of March 2016).
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 for socially responsible investment (SRI) screening companies

Employees

The Nissha Group has 4,034 employees. In a breakdown by region, 64.6% work in Japan, 15.0% in Asia, 12.0% in North America, 5.0% in Europe, and 3.4% in South America (as of the end of March 2016).
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 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 within and outside the company)
Harassment and mental health counseling
Awareness questionnaires and interviews

Suppliers

Nissha’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 procurement and auditing
In-house exhibitions and seminars themed around supplier products and technologies

Society

The Nissha Group has 14 bases in Japan and 27 overseas, 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 2016 are given below (Nissha Group in Japan).

Date Certification/award Company/base Details
Apr. 2015 59th Kyoto Prefectural Award for Distinguished Services in Invention Nissha Printing Co., Ltd. Awards are presented by Kyoto Prefecture annually since 1957 to “promote the significance of invention and ingenuity, encourage developments in science and technology, and increase motivation for invention and ingenuity.”
Nissha Printing Co., Ltd. received the award for the invention of transfer foil used in simultaneous plastic injection molding and decoration that eliminates the need to remove soil and metal from the decorated surface and repair the mold.
June 2015 AEO Importer approval Nissha Printing Co., Ltd. To reinforce our trade management system, Nissha obtained approval from Osaka Customs as an AEO Importer, under the Authorized Economic Operator program.
June 2015 FY2016 Hyogo Prefectural Convention for Safety of Hazardous Materials
Hyogo Association for Safety of Hazardous Materials Representative Director’s Award (Excellent Place of Business)
Nitec Precision and Technologies, Inc. (NPT) Himeji Factory The convention is held annually to raise awareness of safety concerning hazardous materials, promote voluntary establishment of safety systems, and prevent accidents involving hazardous materials. NPT Himeji Factory won recognition for safety management at facilities that handle hazardous materials and activities to prevent accidents.
Oct. 2015 Good Design Award Nissha Printing Co., Ltd. Aerial Switch, a wireless device developed by Nissha Printing Co., Ltd. that can be positioned freely without a power line, won a Good Design Award 2015, hosted by the Japan Institute for Design Promotion.
Aerial Switch functions on minimum electricity such as that generated by solar panels. It won recognition for eliminating the need for residential wiring and thus enabling placement on glass walls.
Oct. 2015 FY2016 Kinki Regional Award for Invention Nissha Printing Co., Ltd. Awards are presented by the Japan Institute of Invention and Innovation annually since 1921 to “honor engineers and researchers responsible for excellent inventions, ideas, or designs.”
Nissha Printing Co., Ltd. received the award for the invention of transfer foil used in simultaneous plastic injection molding and decoration that eliminates the need to remove soil and metal from the decorated surface and repair the mold.
Nov. 2015 Japanese Red Cross Society Gold Medal for Merit Nissha Printing Co., Ltd. Medals are presented by the Japanese Red Cross Society to individuals and organizations that are long-term contributors to blood donation activities. Nissha Printing Co., Ltd. was recognized for organizing in-house blood drives once a year as well as providing donations on a continuous basis.
Nov. 2015 FY2016 Ishikawa Prefectural Residents’ Traffic Safety Convention
Excellent Traffic Safety Place of Business
Nitec Precision and Technologies, Inc. (NPT) Kaga Factory The convention is held annually to promote traffic safety, enhance community comfort, and eradicate traffic accidents. NPT Kaga Factory was recognized for volunteering services as crossing guards at Kaga City Miki Elementary School during the spring and autumn national traffic safety campaigns.
Jan. 2016 Kurumin certification as next-generation supportive company Nissha Business Service Co., Ltd. (NBS) Kurumin certification is granted to companies that meet certain requirements and that formulate and implement an action plan for supporting employees engaged in child-rearing. NBS was recognized for efforts to support balance between work and child-rearing.
Jan. 2016 57th National Catalog Contest: 7 awards including
• Ministry of Economy, Trade and Industry—Commerce and Information Policy Bureau Director-General’s Award (Gold Prize, Category 1)
• Japan Chamber of Commerce and Industry Chairman’s Award (Silver Prize, Category 1)
• Fuji Sankei Business-i Award (Silver Prize, Category 2)
67th National Calendar Contest: 3 awards including
• Japan Federation of Printing Industries Award (Gold Prize, Category 2)
Nissha Printing Co., Ltd. A total of 10 catalogs and calendars printed by Nissha Printing Co., Ltd. won awards in the 57th National Catalog Contest and the 67th National Calendar Contest, co-hosted by the Japan Federation of Printing Industries and Japan Printing News Co., Ltd.

A list of ISO certificates obtained is given below (Nissha Group in Japan as of the end of March 2015).

Subject Areas ISO Standards
ISO9001 ISO/TS16949 ISO14001 OHSAS18001 ISO27001
Nissha Printing Co., Ltd. Global Headquarters ○ *1   ○ *2  
Nissha Printing Co., Ltd. Tokyo Division Headquarters ○ *1      
Nissha Printing Co., Ltd. Kameoka Logistics Center      
Nitec Industries, Inc. Koka Factory    
Nitec Industries, Inc. Tsu Factory        
Nitec Precision and Technologies, Inc. Himeji Factory    
Nitec Precision and Technologies, Inc. Kaga Factory    
Nitec Precision and Technologies, Inc. Kyoto Factory      
FIS Inc.      
Nissha Printing Communications, Inc. Headquarters / Kyoto ○ *1      
Nissha Printing Communications, Inc. Tokyo Division Headquarters ○ *1      
Nissha Printing Communications, Inc. Osaka Division Headquarters ○ *1      
Nissha F8, Inc. ○ *3      
Nitec Printing Co., Ltd. Headquarters / Kyoto Factory      
Nitec Printing Co., Ltd. Yachiyo Factory    
Nissha Business Service Co., Ltd.    
Eimo Technologies, Inc.      
PMX Technologies, S.A. de C.V.        
AR Metallizing N.V. – Genk, Belgium        
AR Metallizing Srl. - Casalgrasso, Italy        
Málaga Produtos Metalizados Ltda.- Osasco, Brazil    
Nissha (Kunshan) Precision IMD Mold Co., Ltd.      
Guangzhou Nissha High Precision Plastics Co., Ltd.      
Southern Nissha Sdn. Bhd.    

*1. Management divisions are excluded from the scope of certification.
*2. Only management divisions and engineering and 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 Printing 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, 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 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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