DOWA CSR Report 2019

Social

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

CSR Policy

  • We will aim to create a workplace where diversity and the human rights of employees are respected, and each person can demonstrate their maximum abilities with satisfaction and pride
  • In unity with the local community, we will promote social contributions that reflect the unique characteristics of the local community

Progress of Activities

 The status of activities in the area of society in FY 2018 and the plan for FY 2019 are as follows.

FY 2018 Results

Key social measures Tasks Indicator Evaluation Main Results
Promoting diversity Employment for the physically challenged 2.2% Strengthening of recruitment activities
Implementation of female employee training and management training Attendance rate 90% Attendance rate 90%
(female employee training 93% and management training 88%)
Expansion of a global human resources
Strengthen human resources and organizations at offices overseas
Implement a global challenge program ■Six mid-level employees participated in the global challenge program (Thailand, Singapore, Indonesia, U.S. and India)
[Details] Cultivating overseas work skills through three months of domestic training and three months of overseas on-the-job training
■10 managers participated in training for foreign location managers (Indonesia, Singapore, Thailand and China)
[Details] Creating organizational missions & sharing cases of trouble overseas
Implementation of training to strengthen recruitment abilities at each company Hold at all the major sites Recruitment staff meetings held at six major DOWA locations (Odate, Kosaka, Akita, Tokyo, Chubu, Okayama and Yanahara)
Promoting work-life balance Thorough disseminate of the various regulations in the company Updating and publicizing the hand book to explain the regulation Finished updating the handbook to explain the regulation (scheduled to be publicized in-house in FY 2019)
Encouragement to use annual paid vacation Rate of days taken 60% Rate of days taken 70%
Promotion of measures to reduce working hours Thorough and strict observance of group management standards for working hours Thorough operation of group management standards for working hours
Human resource development, evaluation & treatment Implementaion of training of evaluators and those being evaluated 300 participants 247 people
Implementaion of an institutional survey Done by 1,100 people (100% answer rate) 60%
Evaluation system education for new employees Attendance rate 100% Attendance rate 100%
Introduction of career planning seminars Attendance rate 30% × Attendance rate 2%
Social contribution Promotion of regional contribution activities that capture regional needs 5 times In Thailand, Indonesia and Myanmar, implemented next-generation development support activities and environmental conservation activities with local residents
Support by sharing and providing information on social contribution activities Collect examples of initiatives and provide information Did a survey of initiatives targeting operating subsidiaries Published in the group report
Disseminated information to the outside via the DOWA Holdings website

FY 2019 Initiatives and Goals

Promoting diversity Employment for the physically challenged   2.2%
Interview each location about improving the work environment Draft measures in order to create workplaces where it is easy to work
Expansion of a global human resources
Strengthen human resources and organizations at offices overseas
Implement a global challenge program
Short-term intensive English language training
Training of foreign location managers
Strengthen relationships with universities and technical colleges
Develop routes to employ those with mechanical and electrical skills
Clarify priority schools
Clarify routes for employment
Promoting work-life balance Thorough internal awareness of the various regulations in the company   Publicizing the handbook to explain the regulation
Encourage the use of annual paid vacation A rate of 70% for the days taken
Promote company-wide measures to encourage the taking of paid vacation
Promotion of measures to reduce working hours Thorough and strict observance of group management standards for working hours
Human resource development, evaluation & treatment Implement training of evaluators and briefings for those being evaluated   300 students
Conduct surveys about the degree of penetration and understanding of the personnel system A response rate of 100% (targeting 1,100 people)
Evaluation system education for new employees Attendance rate 100%
Implement career training for new and young employees
Promote career planning seminars
Attendance rate: 100%
Attendance rate: 10%
Social contribution Activities related to education for children   4 times
Activities related to regional revitalization 4 times

Relationship with Stakeholders

 At the DOWA Group, at each office and department, we communicate with our major stakeholders through various methods of communication, including customers, shareholders, investors, suppliers, local communities and employees.

Responsibilities and opportunities for communication to major stakeholders

Communication with Shareholders and Investors

 At the DOWA Group, we recognize that the explanation of corporate and management information to stakeholders, such as shareholders and investors, is one of important issues for corporate governance , and we are striving to disclose information in a timely and appropriate manner.

Providing IR information

 We hold briefing sessions by management for our quarterly financial result announcements. In addition,we also arrange opportunities to explain management information directly to investors in Japan and overseas. As a tool to report the management policies and situation of the company, we also publish the annual report and other reports in Japanese, English and Chinese, and we work to disclose information that is appropriate and highly transparent.
 In FY 2018, we launched a new e-mail delivery service that provides our latest IR information and major news releases to shareholders and investors. In order for the business situation and business strategies of the DOWA Group to be understood, we also post IR information on our company website. In addition to financial statements and securities reports, we also post materials such as annual reports and shareholder communications.
 We will keep working to disclose information in a timely and easy-to-understand manner.

IR information website

General Meeting of Shareholders

 For FY 2018, the 115th ordinary general meeting of shareholders was held at the Hotel Chinzan-so in Tokyo on June 26th, with about 400 shareholders attending. After the general meeting of shareholders,we hold a social gathering aimed at promoting communication with shareholders. There, we set up a forum for dialogue with executives and a product exhibition section for each business.

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 In addition, we set up a separate presentation room at the venue where the executives can explain the topics of the DOWA Group. For FY 2018, a presentation was given about the business development of DOWA Metals & Mining entitled “DOWA’s Resource Development: Initiatives to Ensure Long-term Stability of Zinc Raw Materials”.

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Dialogue with institutional investors

 Besides the quarterly financial statement briefings by the company president and management, we hold such things as business briefings.
 In addition, IR representatives visit institutional investors in Japan and overseas, and also give individual interviews, working so that they can understand our business and business plans. We regularly report to management the opinions that we receive during these dialogues, which are useful to improve management.

The main opinions we received in FY 2018 with regards to CSR
  • I would like non-financial information to be actively disclosed, as it leads to financial information.
  • The business of the DOWA Group can be summarized as environment and resource recycling. I think that you can appeal as a distinctive entity throughout the company.
  • Please explain how CSR goals and priority measures have led to mid- to long-term enhancement of corporate value.
  • It is easy to understand if web information is organized by ESG.

Together with Our Customers and Business Partners

 The DOWA Group works to improve customer satisfaction by providing better products and services, and to build long-term relationships of trust with its business partners. In addition, we are promoting CSR initiatives through the supply chain, including environmental conservation and improvement in the working environment.

Supply Chain Management

 We promotes CSR throughout the whole supply chain by distributing to business partners and suppliers the “DOWA Group CSR Procurement Guidelines” that pull together our CSR procurement policies and code of conduct, and by seeking understanding about our company’s approach to CSR. in FY 2018, we revised it in line with review of the“Responsible Mineral Procurement Policy”
 In addition, as a supplier ourselves, we may receive requests for CSR procurement from customers, but in order to correctly understand and respond promptly,the environment & safety department and the procurement department collaborate to implement internal explanation and follow-up.

Self-check assessment

 In FY 2018, in order to confirm the status of CSR efforts, we distributed a self-check questionnaire to about 100 major business partners and suppliers, and collected about 95% of them. For those business partners and suppliers who we received answers from, we sent them a feedback report, telling them about the status of the current evaluation. While the overall trend did not change compared to the previous FY, looking at it by sector, we found that initiatives for social contribution were weak.

CSR audits

 With regards to important suppliers, we actually visit them, and together with telling them our thinking about CSR procurement, we also check their conformity with the DOWA Group CSR Procurement Guidelines. In FY 2018, we visited six raw material and auxiliary material manufacturers that are important for our manufacturing business. At the places we visit, we interview them about the questionnaire results, check documents, and confirm site safety and environmental initiatives. In addition, the audit results are compiled in a report and confirmed so that they can be used in future CSR initiatives.
 Regarding the importance of CSR in the supply chain, we will keep working to further improve CSR while strengthening the partnership with suppliers by getting their understanding.

Results of the FY 2018 self-check questionnaire

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 FY 2018, we conducted an audit of our internal quality control system for major overseas business sites.
 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

 With regards to opinions and inquiries that we have received from customers, we strive to supply satisfactory products by aiming to promptly make appropriate improvements. We aim to improve the information sharing and management system, and we classify, analyze and evaluate the information gathered at each business site, which leads to development and improvement of our products and services.

Together With 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 locations, 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.

The DOWA Group’s Social Contribution Activities [Domestic]

[Tokyo] Students Took a Field Trip Tour of Our Headquarters

 In May 2018, as part of a school trip, 47 third-year students from Kosaka Junior High School at Kosaka town, Akita Prefecture, the area of our company’s birthplace, visited the headquarters of DOWA in the Akihabara area of Tokyo. In these tours that started from 2013, after they tour our offices and we explain our business, every year the students come up with ingenious presentations, such as song or dance,and it becomes a place for mutual exchange. In FY 2018, which was the sixth time, a choir of the students performed the school song and nursery songs. In addition, the students presented us with a calendar using the “Kosaka Municipal Day Map” prepared by the Kosaka Revitalization Action Project and photos of the town.

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

 The DOWA Cup, held on the shore of Lake Towada in Akita Prefecture, is a historic junior cross-country ski tournament that started in 1991, and it is certified as an official event of the Ski Association of Akita. It also serves as a Jr. Olympics representative selection race, and one of the features is the sit ski competition that is held, an official event of the Paralympics.
 Over 100 staff are involved in its operation, including our employees and people from neighborhood councils and local ski clubs etc. It takes over a month to prepare the courses. For more than a quarter of a century, the event has deepened the bond between the DOWA Group and the people of the local community, such as cooperating in setting up the venue and taking it down at the end. In February 2019, for the 29th DOWA Cup, 245 children from elementary and junior high schools in the three Tohoku region prefectures participated and competed in the races.

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[Okayama Prefecture] 9th Lake Kojima Flower Corridor Cherry Blossom Festival

 The Lake Kojima Flower Corridor Supporters’ Club (KFSC) is an organization established primarily by the DOWA Group to improve the environment around Lake Kojima and its surroundings in the memory of Denzaburo Fujita, the founder of the DOWA Group, who was known for reclaiming Kojima Bay in the city of Okayama. We promote regional exchange and environmental conservation activities through the Flower Corridor Project that plants and nurtures Kawazu cherry trees around Lake Kojima. The Flower Corridor Project is a system where each cherry tree has a plate with the name of the supporter written on it, and the person planting voluntarily manages it.We are working with local people, including for the planting and care of the trees. When the Kawazu cherry trees blossom in early March, we hold a cherry blossom festival with the cooperation of the local neighborhood associations and volunteer groups. In FY 2018, the 9th Lake Kojima Flower Corridor Cherry Blossom Festival was held on March 11th, with about 20,000 people visiting.

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[Overseas]

Initiatives in Myanmar

 As Myanmar’s first private waste treatment facility, GOLDEN DOWA ECO-SYSTEM MYANMAR (hereinafter referred to as GEM), which is located in the Tirawa Economic Zone in the suburbs of Yangon,provides comprehensive waste management solutions such as transportation, sorting, intermediate treatment, recycling and landfill of waste.
 Not only contributing to society through its business, GEM aims to get the trust of society through CSR activities, and to grow together. In line with the CSR policy of the DOWA Group, GEM is working on CSR activities for all four areas of corporate governance, safety, the environment and society. In promoting social contribution, a priority measure, and in order to contribute to the local development of Myanmar, we are actively engaged in activities that improve the lives of local residents and support children who will lead the future.

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Workshops for Neighborhood Residents

 As a place to deepen exchanges with local people, from the tim e that the facilities were constructed, every May and November GE M holds workshops for the neighborhood residents that explain the business, and lectures and events on the theme of health and safety.At the tenth workshop in November 2018, we explained the operational status of our business s ites, as w ell as safety and environmental initiatives. Also, to improve road safety, there was a lecture given about the safety of driving motorcycles as a comm on way of transport, with about 50 residents participating.

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Tours for Residents

 GEM’s CSR activities are based on the building of mutual trust, and at the same time as understanding the situation of local residents,working to disclose information about the company. Approximately 1,000 residents live in the villages near the district of Tirawa, where GEM is located, including those who work for the company as employees. In January 2019, we held a second tour of our business sites so that local residents could actually see GEM’s waste treatment facilities. The tour was attended by 80 people, including adults as well as local children, who saw the status of each facility as explained by local staff. Through these opportunities, GEM can feel more familiar to the local people, and we hope that this will also lead to an interest in waste treatment.

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Children’s Day Events

 In Myanmar, every February 13th is“ Children’s Day” when families celebrate and wish for the growth of their cherished children. GEM holds an event in February each year and invites nearby children to commemorate Children’s Day. For FY 2018, the 3rd event was held on February 17th, and gifts of sweets and soy milk were given to about 300 local children who participated. In the future, we would like to continue initiatives that the local children would enjoy.

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Together with Employees

 The DOWA Group specifies that human resources are the basis of all business activities, and employees are evaluated for their ability to do their jobs, regardless of differences in their educational background, seniority and gender. We have taken various initiatives so that employees can exercise their full potential.

Employment status

 At the end of FY 2018 (March 31st, 2019), the number of employees in Japan was 6,359, up 265 people the year before. Of the regular employees in Japan, there were 4,049 men (91%) and 388 women (9%).With globalization, the proportion of employees at offices overseas is increasing, and the number of employees overseas in FY 2018 was about 34% of the total. In addition, the total number of new graduate and mid-career hires in the group as a whole was 230 men and 31 women,an increase of about 15% from the year before. The retention rate three years after joining the company has been around 90%, with women tending to be higher.

2018年度地域別従業員
[ Employment related data ]

Employment situation in Japan (DOWA Group)

Type of employee

FY

Classification

FY2016 FY2017 FY2018
Men Women Men Women Men Women
Regular employees in Japan Executive officers 128 1 125 1 120 1
Management employees 758 9 778 10 754 13
General employees 2,901 311 2,948 326 3,175 374
Non-regular employees in Japan Dispatched employees 633 709 720
Part-time 1,050 281 897 300 839 363
Total 5,470 602 5,457 637 5,608 751
Grand total 6,072 6,094 6,359

No. of employees by region (including non-consolidated)

Region FY2016 FY2017 FY2018
Japan 6,072 6,094 6,359
Asia(besides Japan) 2,899 3,092 3,148
Europe 23 14 14
North America 96 131 166
Latin America 1 4 4
Total 9,091 9,335 9,691

Employee Retention Rate (DOWA Group new graduate and mid-career hires combined)

Year they joined the company FY 2016 (as of the end of FY 2018)
Men Women
Avg. retention rate after 3 years in the company% 88% 100%
Avg. retention rate 89%

TOPICS

Act-B Recycling Certified as a “Bright Company”

 In Kumamoto Prefecture, in order to improve the working environment and treatment of workers in the whole prefecture,and to promote youth employment in the prefecture, a company where workers can shine brightly and continue working with peace of mind is certified as a “Bright Company”(a phrase coined by Kumamoto Prefecture to express the opposite of a “black company” that exploits its employees.) It is an initiative to widely disseminate the excellent activities of such companies. In October 2018, Act-B Recycling, which does electrical appliance recycling in the city of Minamata,was certified as the second Bright Company in the southern district of the prefecture, recognizing the degree of their contribution to local employment and to the local community, the improvement in the level of satisfaction for employees and their families, and initiatives for stable management.

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Human Resource Development and Evaluation

 As a vision for human resources and our organization, the DOWA Group aims to “By respecting a solid and free corporate culture and building a founfation for long-term growth, we will create human resources and organizations that will continue to provide new value to society.” We are developing various human resource development and utilization measures for all employees.

Fair evaluation & treatment

 At the DOWA Group, based on the principle of“evaluating employees for their ability to proceed their tasks on their own”, we are working for fair evaluation and treatment under the following policies.

  • For evaluators and those being evaluated,deepen understanding of the standards and structure of the system, and utilize appropriate evaluations and training.
  • While sharing organizational goals, and getting understanding of the abilities and behaviors required of their job grade, try to improve their work performance.

 Training for evaluators and those being evaluated is positioned as a group-wide initiative. By setting up opportunities for ongoing training, we strive for appropriate evaluation, treatment and training. As a training opportunity, we plan to cover all employees of the group over three years. In addition to getting understanding of the system, as a key point for the three years from FY 2018, we are conducting “interview training” aimed at promoting communication with subordinates. We also conduct a survey every year in order to evaluate the operational status of the system. The identified issues will be added as new items for improvement in the next year’s briefing for those being evaluated and evaluator training. We are striving to promote understanding of the system for employees, and for its appropriate operation.

Education and training system

 From new employees to managers, we have established stratified education according to job classification, and have set up an education system of selective education in order to nurture the next generation of leaders at each level. We also conduct training and meetings to implement shared awareness and edification. In FY 2018, we held new training to strengthen middle management for managers and held a human resource development manager meeting to strengthen on-site capabilities at each site. In the selective education, we also provide opportunities for self development, with such things as correspondence education and e-learning, which are easy to use with few restrictions on time and place, and external interactive education.

No.of training students・Training time per participant
[ Education System Example ]

(Targeting DOWA Holdings and the operating companies)

Education System Example

Promoting Diversity

 At the DOWA Group, we believe that diversified human resources with various values and points of view who can fully demonstrate their individuality and abilities will lead to the growth of the company.

Training of Global Human Resources

 As part of promoting diversity, we are working on creating a mechanism from the recruitment stage based on the idea of working globally regardless of nationality. In addition to actively hiring Japanese and foreign students who have graduated from overseas universities, and international students from overseas, with the expansion of employing people in various countries and regions, at the time of hiring, we provide education to communicate our philosophy and policies, together with a consideration for human rights. We are also working to develop global human resources, such as conducting “global challenge program” training for mid-level employees where they go to overseas locations other than their own department to work on solving problems.

Re-employment of retired workers

 Utilizing their technical skills and knowledge, for employees who wish to continue working even after their retirement, we are striving to improve the environment so that they can work with more motivation. In addition, for the purpose of providing information about a second career after retirement,we hold a life planning seminar for employees who have reached a certain age. We have also established an investigative committee on the employment of the elderly, and are discussing ways to utilize this human resource in the future.

FY 2018 No.re-employed

Promotion of Women’s Participation and Advancement

 There is no distinction according to gender in how people work, and regardless of whether in Japan or overseas, female employees are also active in such fields as manufacturing, research and development, production management, sales and accounting. For hiring, promotion and advancement as well, evaluation is done according to the abilities of the person. For the hiring of women for regular positions, it is about 10% to 20% of people hired overall, and the number of female managers is 1.7%. The number is certainly not high, but it is on an increasing trend year by year, along with changes in the business and workplace environments. In particular, the number of domestic general employees has increased by nearly 50. In addition, from FY 2017, we launched diversity career training and diversity management training to support the advancement of women, and we are working to expand education for women employees.
 At our company, despite arranging a workplace environment where it is easy for women who are raising children to work, such as a flex-time system without core time and assistance for child-rearing costs, it is a problem that the proportion of continued employment is lower than that of male employees. In the future, we will actively work on improving the system to balance work and family life and to change awareness, with a numerical target of 80% or more for the continued employment of women hired 10 years ago, so it is about the same as men.

Percentage of female workers by position

Position FY 2016 FY 2017 FY 2018
Executive officers 0.8% 0.8% 0.8%
Management employees 1.2% 1.3% 1.7%
General employees 9.7% 10.0% 10.5%
Employment for the physically challenged

 In FY 2018, for the DOWA Group as a whole, the employment rate for the physically challenged was 1.3%, and we were unable to reach the statutory employment rate. On the other hand, the number of such employees hired is on the rise. In order to promote the employment of the physically challenged, we will continue to provide opportunities for workplace experiences, and to create a workplace environment that accepts them and where it is easy for them to work. In FY 2019, we are recruiting with an expansion in the types of jobs.

Graph of Employment for the physically challenged

Work-Life Balance

 With the aim of harmonizing work and life, we are enhancing the system to support work-life balance, and are developing a workplace environment where it is easy to work, so that it is possible for employees to maximize their abilities according to their lifestyle.

Supporting Various Working Styles

 At our company, we introduced a flex-time system without core time so that employees can work according to the fluctuations and characteristics of the job. In addition, besides volunteer leave and a relaxation leave system where employees get days off for a certain length of service, we have prepared support measures beyond what is stipulated by the law, such as paid leave for nursing sick children (up to five days), limitations on transfers that involve moving for the reason of childcare, partial subsidies for childcare expenses and a leave system due to life events. The number of people using these systems has increased every year. In FY 2018, the number of people who took childcare leave was 33, and 35 men and 28 women took leave for nursing sick children.

Those Taking Child-Care Leave & Leave for Nursing Sick Children

FY
Number of People Took (People)
FY2016 FY2017 FY2018
Man Woman Man Woman Man Woman
Child-Care Leave 0 28 2 32 2 31
Leave for Nursing Sick Children 24 24 27 26 35 28
In-house Questionnaire

 We conduct a questionnaire on work-life balance for new employees every year. Following from the previous year, in FY 2018, those who wished to take child-care and family-care leave were more than 80%, including men. It seems that changes are occurring in how people think about the balance between work and family. Against the background of the improvement in the utilization rate of the current system, such as leave for nursing sick children, in addition to promoting the improvement of the workplace environment so that it is easy to use the system, the impact of the change in awareness by such employees can be said to be significant.
 On the other hand, to balance work and family, there was also a wide range of opinions requesting that specific measures be expanded, such as initiatives to improve the rate at which annual paid vacation is taken, and systematic implementation of telecommuting. We will keep working on work-life balance initiatives with these opinions in mind.

Those Desiring to Take Child-Care Leave
Optimization of Working Hours

 We are working to reduce long working hours and promote the taking of annual paid leave so that employees can work with health and vigor in both mind and body. With the attendance system managed by the head office, we are managing time through the computer logs, and when a certain level of working hours are exceeded, an improvement plan must be submitted to the manager. There is also an interview with an industrial physician depending on the number of overtime hours. The average overtime hours in FY 2018 were 18.2 hours per month, an 8% decrease from the previous year, so it is improving. To optimize working hours, we will continue to strive to manage working hours with both hard and soft measures.
 With regards to annual paid leave in FY 2018, with 20 days on average granted, employees took about 70% of their vacation days, an increase of 7% from the year before. Besides promoting the planning of yearly paid leave according to the business situation at each business site, by changing the awareness of employees with such things as feedback on the number of days taken during the year, the number of leave days taken improves year by year.

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