DOWA CSR REPORT 2015

Society

Relations with Society

The DOWA group promotes communication with major stakeholders including our customers, shareholders, investors, partners, local people and employees using various tools in each business entity and department.

In relation to the main stakeholders

In relation to the main stakeholders

Together with our stockholders and investors

The DOWA group recognizes that explaining corporate and business management information to our stakeholders including shareholders and investors is one of the important points in terms of our corporate governance and we are committed to timely and proper disclosure of the information. Our management holds results briefings on quarterly basis. We also offer opportunities to communicate with both Japanese and international investors directly on our business information. We try to make proper and highly transparent disclosure of information, by publishing our annual In relation to the main stakeholders report and IR reports in Japanese, English and Chinese.

Communication with shareholders and investors

General Shareholder’s Meeting

The regular general meeting of shareholders is held in June every year in Hotel Chinzanso, Tokyo and around 400 shareholders attended the same in FY2014. After the general meeting of shareholders, a social gathering is held with the aim of encouraging communication between shareholders and providing a platform for interaction with employees. A product display corner for each project was setup too.
A separate presentation room was setup where employees explained the themes of DOWA group. A presentation on the efforts was taken for overseas expansion of heat treatment business and Research and Development was given in FY2014.

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Field Visit for Investors

A field visit is organized every year for constitutional investors and investment analysts to facilitate better understanding of business activities of DOWA group.
In July 2014, a factory visit was organized for constitutional investors in DOWA THERMO ENGINEERING, Ota Plant (Gunma prefecture). A site visit is organized every year for investors as a part of PR activity which is very popular for "deepening the understanding of how to specifically handle each project".
During the field visit, entire operation of heat treatment was explained after which operations of Ota Plant was explained and site visit was organized. In the question session after visit, many questions were asked about features of the heat treatment project and fields of main focus in future. The strength of DOWA THERMOTECH that handles both marketing and maintenance of equipment and processing services was thoroughly explained.

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DOWA HD Website (IR information)

IR information has been put up on this website for the shareholders and investors to understand the management situation and business strategies of DOWA group better. Other than summary of financial results and securities report, material such as annual report and communication with shareholders has also been posted. In future also, we will take efforts for easy-to-understand timely information display.

http://www.dowa.co.jp/jp/ir/

DOWA HD Website (IR information)

Together with our customers and partners

DOWA group contributes for a better society by offering high quality products and services and strives to improve customer satisfaction. DOWA Group also works towards showing mutual cooperation with the clients as a good partner by building a long-term trust relationship.
"DOWA Group CSR Supply Guidelines" which contain summary of CSR supply policy, code of conduct etc. of the company has been distributed to clients. We promote CSR for entire supply chain such as requesting understanding of concept of CSR of this Group.

Quality control

The DOWA group positions "quality" as the core of our business in manufacturing products. The group’s major plants obtained the ISO9001 certificates, the international standard on quality management system. We endeavor to improve quality of products and services by continuously operating this quality management system based on PDCA (Plan Do Check Act).
Products provided by DOWA range from smelting to powdering, plating, semiconductor, heat treatment and recycling. We must respond to defects, improve quality and develop new products with high level evaluation technology to maintain top class quality in each area mentioned above. For this purpose, we have a technology center within each business entity with advanced analytical and evaluation facilities and human resources to conduct chemical analysis, surface analysis and physical property evaluation.

Contact and Response to Comments and Opinions

Contact and Response to Comments and OpinionsWe make improvement responding immediately to opinions and comments from our customers and strive to offer products that satisfy them. We put the information sharing and management system in place, classify, analyze and evaluate information collected from each entity for improvement and development of products and services.

Dealing with the conflict minerals

DOWA group considers responsibility of business relating to conflict minerals as one of the important CSR problems and is working towards ensuring transparency in supply chain in the supply activity and materializing supply of the same minerals by cooperating with the group company or the clients. In FY2014, a survey was conducted and reply to inquiries from customers was sent based on the policy of management of this company for conflict minerals.

Dealing with the conflict minerals

Acquisition of CFS Certification (Conflict-Free Smelter Program)

photoECII which is a CSR promoting group of the electronic industry and ICT sector and GeSI that promotes sustainability of economy, environment and society, inspect smelter and run program that certifies "Conflict-free smelting" (CFS Certification System). DOWA group received CFS certification for Kosaka Smelting in FY2012 for gold and for eco-system recycling of rare metal recycling (secondary smelting) in FY2013 and we have started offering gold as a conflict-free mineral.
In FY2014, we also received CFS certification for Kosaka Smelting for tin which is in lot of demand for promoting mineral supply for the customers.

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Together with the Regional Society

Contribution to the regional society is an important policy of the DOWA group. At each of the base stations within Japan and abroad, we are expanding CSR activity rooted in the respective region such as hosting communication such as regional social gathering or sports events, factory visit or recruiting interns for regional development.

Activity for Regional Contribution

photo25th DOWA Junior Cross-country
Skiing Tournament

photo6th Lake Kojima flower corridor
Cherry Blossom Festival

In FY2014, we sponsored events such as marathon race and Cherry Blossom festival in Okayama prefecture and junior cross-country skiing tournament in Akita prefecture in collaboration with the regional people, where we saw lot of participation in each region. We surveyed situation of social contribution through questionnaire as an effort towards overseas business.

Business Trip to a Local School

photoEco-system Chiba that is waste treatment plant visited Nakagawa Primary School, Nagaura Primary School and 2 local primary schools in Sadegaura city in February 2015. We conducted an enjoyable study on problem of illegal waste disposal and responsibility of waste generator towards its treatment through quiz and games on the theme of "Let’s end illegal waste disposal!" in FY2014. In the card game for understanding plan of illegal waste disposal, opinions of children were sought on how to reduce illegal waste disposal.

Receiving Work Experience Workshop

photoDOWA Metal (Shizuoka) that processes metals conducted a work experience workshop for the neighboring three 2nd-year middle-school students for 2 days in October 2014. This work experience workshop is conducted every year in line with the school policy of "Do the work yourself while watching the social workers in action and choose your future course and plan your future". In FY2014, the workshop was conducted in 3 departments and particularly in quality management section, children enthusiastically took part in the workshop of using measuring apparatus (tensile strength, hardness, plating measurement) that are not seen in ordinary schools.

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Valuation from Society "Contribution Towards Society through Sports"

In April 2014, a letter of thanks was presented by Akita Prefecture Skiing League for the efforts taken by DOWA group for "DOWA Cup Junior Cross-country Skiing Lake Towada Tournament". DOWA Cup started in 1991 entered into its 25th edition in February 2015. It has grown into a national top class tournament in the junior Nordic competition where primary and middle school students are selected for Olympics. Various contributions towards growth and development of children and improving their competitiveness such as newly organizing skiing competition for disabled (sit skiing) from 2007 were evaluated.

Together with our employees

The DOWA group sets forth in 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 are promoting various activities with the following goals so that employees can exercise their full potentials.

Employment Status

The DOWA group tries to promote proper allocation of employees, considering our business plan and employ diversified human resources who have talents and capabilities necessary for our business.
No. of employees in Japan at the end of FY2014 (March 31, 2015) was 5686, which saw an increase of 275 from the last year. Out of the regular domestic employees, 3,651 are men (92%) while 318 (8%) are women.
No. of local employees that work mainly in Asia also increased by approx. 300 as compared to last year due to global expansion and proportion of overseas employees became approx. 35%.

Map

< Domestic employment situation >

FY

Attributes

FY2012 FY2013 FY2014
Men Women Men Women Men Women
Domestic regular employees Employees 124 0 121 0 130 0
Management employees 707 8 715 9 735 12
General employees 2,727 294 2,703 296 2,786 306
Domestic non-regular employees Dispatched employees 318 405 479
Part time employees 846 291 859 303 924 314
Total 5,315 5,411 5,686

< No. of region-wise employees >

FY

Attributes

FY2012 FY2013 FY2014
Japan 5,315 5,411 5,686
Asia (except Japan) 2,520 2,622 2,903
Europe 4 10 16
North America 92 80 92
Central and South America 1 1 3
Total 7,932 8,124 8,700

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 FY2014

Besides step-wise training, DOWA group conducts extensive training in technology, environment and safety for every office.

<Situation of conducting personnel training>
Targeted at Training details No. of participants
(no. of persons)
Total training time
* Only training time
(hours)
Management staff
(continued)
Top management training 60 480
Next-term
management staff
(continued)
Business leader development training 15 1,350
Management staff
(continued)
Management training,
subordinate training
71 1,677
Mid-level
employees
(continued)
Leadership training 46 736
Up to 3rd year after
joining (continued)
Fresher’s training, OJT,
follow-up training
(skill improvement,
self-establishment within
organization)
226 14,768

Plan for FY2015

A review of the every year’s training is taken with focus on making the training more strategic and more patronagedriven for training the personnel who can deal with the frantically changing times and environment. For FY2015, we have planned systematic restructuring of the step-wise training conducted in DOWA group for the employees that join as fresher and step up the management ladder to become managers. Expansion and training of personnel for global operation is being mainly undertaken with the expansion of overseas business. Strengthening of engineering capacity and site capacity has been planned as the most important task with focus on strengthening of business competitiveness and more diversified and multifaceted efforts will be taken than last year.

Just and Fair Valuation and Treatment

In DOWA group, just and fair valuation 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. Efforts are being taken with focus on circumstances that are utilized for training.

The rank givers and candidates must have thorough understanding of structure and standards of company system and they must continue to put in efforts for utilizing this knowledge for rank giving and training.
Sharing of organization targets and improving of business execution ability has been planned while showing ability and conduct that is demanded for improving personal ranking.

The rank givers and the candidates engage themselves in just valuation, treatment and training by continuously creating positions and opportunities in the entire group. The rank giving practice is conducted every year for new managers. However, training of rank givers and candidates has been planned for entire group for 3 years from FY2015.
System survey will also be conducted every year for understanding the status of application of system so as to recognize problem areas and achieve improvement.

Just and Fair Valuation and Treatment

Career Matching System

A system that has been introduced with the aim to develop and support 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.

Promotion of 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 students or foreign students that have graduated from foreign universities or foreign students from abroad are recruited and recruit result is rising every year. A 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. A 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. In future too, we plan to expand our global human resources pool.

Training of Overseas Staff

photoDOWA group promotes training of the entire group including employees stationed in overseas offices. In FY2014, local recruited staff of China and Thailand was invited to Japan for the training on equipment maintenance and safety in technical training center (Shizuoka) and mid to long-term training was conducted in Japan for management candidate employees.

Promotion of Women Activities

No. of women recruited for comprehensive work is 10 to 20 percent of the entire no. of recruits which is not high. However, ratio of women employees is increasing every year with change in business and working atmosphere. There is no sexual discrimination in the working method and women employees are also very active in the fields such as manufacturing, research and development, production management, administration, finance irrespective of being based in Japan or overseas. Similarly for recruitment and promotion, the valuation is done as per merit and efficiency. In offices, infrastructure and system that can handle various lifestyles have been put in place for making the working atmosphere easy-to-work for women. A project will be started for further promoting women activities in FY2015.

Utilization of Veteran Employees

An environment where employees who have reached their retirement age can work such as reformation of reemployment system, new creation of system that treats the employees according to their role was put in place in FY2013 for employees who wish to work in DOWA group even after retirement. A seminar was held for employees who have reached retirement age so as to provide information on life plan after retirement in FY2014.

Employment for Physically Challenged

In FY2014, the ratio of employing legally physically challenged persons could not be attained in the entire Group. Easy-work environment cannot be materialized for physically challenged in smelting or metal processing factories of this Group and hence, we are working towards increasing employment through creating high-quality working environment or promoting work experience without focusing on equality in the office.

Employment for Physically Challenged

Valuation from Society
"Public recognition for Kumamoto prefecture as excellent working place for physically challenged"

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"Act-B Recycling" that is into recycling of home appliances was awarded as an excellent working place for physically challenged for Year 2014 by Japan Organization for Employment of the Elderly, Persons with Disabilities and Job Seekers, Kumamoto Branch in September 2014.The same company conducts training on dismantling and selection of substrate and personal computer by accepting 25 physically challenged persons in the format of training conducted by a neighboring facility. These activities were valuated this time and reached public recognition on the recommendation of Kumamoto Labor Bureau. In the future, we plan to put up a system for direct employment of the physically challenged in order to take the efforts taken till now a step forward.

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 life style 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

Supporting Diverse Ways of WorkingFlextime system with no core timing has been introduced in DOWA group so as to make the working timings flexible. Besides, volunteered holidays or recreational holiday system that can be availed of after a fixed no. of years of continuous service, support policy that is more than legally stipulated for paid paternal leave (up to 5 days) and restrictions on change in case of moving residence due to children has also been put in place.

Situation of Use of Multiple Systems

No. of system users is rising every year and persons taking paternal leave in FY2014 were 16. 9 men and 3 women took nursing leave.
As the situation of availing of the annual salaried leave, 59% employees took this leave as against 20 average granted days. 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.

Situation of Use of Multiple Systems

Promoting Policy for Reducing Working Hours

In Japan offices, a labor-management agreement in relation to the overtime work has been made according to the law, which has been submitted to the administrative authorities of the respective jurisdiction. In FY2014, diligent management system was reformed whereby a reformation must be submitted to the manager if fixed working hours are exceeded. Work management training was conducted for new manager who is the main person who manages working hours. Moreover, we are also working towards strengthening management of working hours from the aspect of hardware and software in order to reduce long working hours.

Internal Questionnaire

CSR department every year conducts a questionnaire on work-life balance for newly joined employees. In FY2014, persons wishing to avail of the nursing leave including men crossed 80% for the first time. We also understood that more than 70% employees desire to utilize no-overtime-day or flextime and at the same time, wish that working environment wherein these systems can be used easily needs to be provided. We will work towards attaining work-life balance in future while considering these opinions.

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