Nissha Group’s CSR

Approach to CSR

Toward Realizing Our Mission

The Nissha Group’s Mission is to 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 . As a specific means to realize this  Mission, our brand statement “Empowering Your Vision” expresses the ideal relationship of co-existence between Nissha Group 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.

Activities for Stakeholders

We identify the stakeholders that support Nissha Group 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.

*Corporate Mission and Brand Statement can be viewed here.
Corporate Philosophy and Brand

CSR Management

The CSR Committee convenes once a year in the presence of the chair, served by the president, and reports and offers suggestions on important matters to the Board of Directors. In fiscal year 2017, having approved the initiatives of each subcommittee, the CSR Committee deliberated on matters such as desktop training in business continuity planning (BCP), our internal reporting system, and trends in work hours in MBR throughout the year, and managed the progress of activities. And the results of the year-end management review 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. 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 plan to complete the building of management systems based on the EICC Code of Conduct throughout the Nissha Group and at major suppliers.

CSR Committee Organization Chart

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

Materiality

What challenges must we address in order to realize Co-existence with society? We at Nissha Group believe it is important to recognize the direct and indirect impact (effect) of our manufacturing activities on society, and face up to the challenges posed as a result.

To this end, we analyzed our business operations, deliberated on the various challenges they pose to society, and in fiscal year 2016 identified a set of material topics. In fiscal year 2017, we expanded the boundary of stakeholders subject to impact and reviewed the material topics established in the previous year. We then analyzed the topics based on materiality to our stakeholders and materiality to Nissha Group, consulting the standards provided by the Global Reporting Initiative (GRI), and incorporated internal and external views into determining topic-specific materiality. The process and results are given in the tables below. Each CSR subcommittee sets key performance indicators (KPI) for the material topics identified, and is working toward them as priority issues.

Process for Identification of Material Issues

Step 1
Identify topics
Topics with an impact on Nissha Group and our supply chain are extracted based on the topics provided by the GRI Standards.
Step 2
Prioritize
Individual topics from Step 1 are measured for impact on our stakeholders and impact on Nissha Group, 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 independent directors and internal specialized divisions.
Step 4
Determine materiality
Material topics identified in steps 1 to 3 are compared to key topics in the medium-term business plan, reflected in specific action programs (KPI), and approved and determined by the CSR Committee.

Assessment of Map

Assessment of 46 Aspects

Boundaries of Material Topics

Categories Aspects Boundaries
Inside of Nissha Group Suppliers
Economic Anti-corruption
Environmental Energy  
Emissions
Effluents and Waste
Supplier Environmental Assessment
Social Employment
Occupational Health and Safety
Training and Education
Diversity and Equal Opportunity
Non-discrimination
Forced or Compulsory Labor
Supplier Social Assessment
Customer Privacy
Socioeconomic Compliance
Others Transport
Grievance Mechanisms (Human Lights, Labor Practices)
Business Continuity Planning

Material Issues and Subcommittee Responsible

Material Issues Subcommittee
Socioeconomic Compliance Corporate Ethics and Compliance Subcommittee
Grievance Mechanisms (Human Lights, Labor Practices) Corporate Ethics and Compliance Subcommittee
Labor and Human Rights Subcommittee
Business Continuity Planning Business Contiuity Management Subcommittee
Employment
Training and Education
Diversity and Equal Opportunity
Non-discrimination
Forced or Compulsory Labor
Labor and Human Rights Subcommittee
Energy
Emissions
Effluents and Waste
Transport
Occupational Health and Safety
Environmental, Safety and Health Subcommittee
Customer Privacy Information Security Subcommittee
Anti-corruption
Supplier Assessment
CSR Committee Secretariat (cross-sectoral approach)

Nissha Group's Stakeholders

We identify the stakeholders that support Nissha Group 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.

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 provided by website
Supplier responsibility (SR) audits by customers

Shareholders

We have a total of 46,822,153 outstanding shares and 6,798 shareholders. In a breakdown of shareholders by type, 37.1% are Japanese financial institutions and securities firms, 27.5% foreign institutions and individuals, 22.2% other Japanese corporations, 13.0% Japanese individuals and others, and 0.2% treasury stock (as of the end of March 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 for socially responsible investment (SRI) screening companies

Employees

The Nissha Group has 5,133 employees. The number of employees including the temporary employees is 7,030, and in a breakdown by region, 56.8% work in Japan, 9.4% in Asia, 15.3% in North America, 8.8% in Europe, and 9.7% in Central and South America (as of the end of March 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
Awareness questionnaires 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 procurement and auditing
In-house exhibitions and seminars themed around supplier products and technologies

Society

The Nissha Group has 16 bases in Japan and 42 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 2017 are given below (Nissha Group in Japan).
* Nissha Printing Co., Ltd. changed its trade name to Nissha Co., Ltd. with effect from October 6, 2017.

Date Certification/award Company/base Details
Apr. 2016 60th Kyoto Prefectural Award for Distinguished Services in Invention Nissha Printing Co., Ltd. We received a Kyoto Prefectural Award for Distinguished Services in Invention for two patents: one for our proprietary touch panels, and another for metallic gloss sheets used in in-mold decoration (IMD). 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.”
Nov. 2016 FY2017 Kinki Regional Award for Invention Nissha Printing Co., Ltd. The Company was recognized for contributing to the enhancement of science and technology, and the promotion of industry in Japan, for the same two patents for which we received a Kyoto Prefectural Award for Distinguished Services in Invention: one for our proprietary touch panels, and another for metallic gloss sheets used in IMD. Kinki Regional Awards for Invention 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.”
Jan. 2017 "58th National Catalog Contest: 5 awards including
• Japan Paper Association Award (Silver Prize, Pictorial Records Category)
• Japan Federation of Printing Industries Chairman’s Award (Silver Prize, Catalog Category) 68th National Calendar Contest: 3 awards including
• Minister of Education, Culture, Sports, Science and Technology Award (Gold Prize, Category 3; Silver Prize, Category 1)"
Nissha Printing Communications, Inc.
Nitec Printing Co., Ltd.
A total of eight calendars and catalogs designed, produced, or printed by Nissha Group won awards in the 58th National Catalog Contest and the 68th National Calendar Contest, co-hosted by the Japan Federation of Printing Industries and Fuji Sankei Business-i.
One of the works was the official calendar of Nissha titled “Kyoto—The Beauty of Four Seasons,” which won the silver award in Category 1 in recognition of the design as well as photoengraving and printing technologies.
Feb. 2017 Health and Productivity Management Organization (White 500) Certification Nissha Printing Co., Ltd. The Company was certified as a Health and Productivity Management Organization in the large enterprise category (White 500) at the 2017 announcement ceremony co-hosted by the Japanese Ministry of Economy, Trade and Industry (METI) and Nippon Kenko Kaigi. Certification is granted to outstanding large enterprises and SMEs working to address community health challenges and promoting in health-conscious activities led by Nippon Kenko Kaigi. Nissha was recognized for the initiatives we presented in the FY2017 METI survey.

A list of ISO certificates obtained is given below (Nissha Group, as of the end of March 2017.For the company name ,as of end of Decenber).

Subject Areas ISO Standards
ISO/TS16949 ISO9001 ISO14001 OHSAS18001 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 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          
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.            
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 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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