Investment in human capital

Introduction

Material issues (IV)

▶Ensuring diversity of HR▶Realizing health management▶HR and organization development toachieve sustainable growth▶Workstyle reforms utilizing technology

Taking on corporate
culture transformation
Koji Shibata

The major themes of our Group Vision 2030 announcedin April, “Be a solution company leading the nextgeneration circular economy,” are “improving profitability
by providing added value to resolve social issues” and“creating a company that employees who share the samevalue can take pride in (improvements to engagement).”
I recognize that this Group Vision cannot be achieved
simply through the continuation of conventional
initiatives, but that it requires major challenges andinnovation at both the organizational and individual levels.
Moreover, it is essential for all employees to innovate
their ways of thinking, their awareness, and their actions.
Up until now, we had formulated “Human Resources
Medium-term Plans” based on management strategies,
but this time, we have formulated a “Human Resources &Corporate Culture Transformation Medium-term Plan” thatincorporates corporate culture transformation with the aimof transforming corporate culture into the one conducive
to ongoing challenges and innovation. Last year, weintroduced 360-degree feedback to general managers forthe first time, and “challenges and innovation” was listed
as one of the actions that needed improvement. Moreover,in the engagement survey conducted last year, scores for a“culture of openness and mutual respect” were lower

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Financial/Corporate Data

▶Improvements to engagement

Message from an executive officer in charge of human resources

The background of the formulation of a
Medium-term Plan for the human resources
department

Foundation for Value CreationOur initiatives

Investment in
human capital

Executive Officer

Strategies for Value Creation

than other companies. Accordingly, we have incorporated
various measures into our Human Resources & Corporate
Culture Transformation Medium-term Plan in order to bringabout a “culture that is open and free, values challenges,
and allows people to participate in their own unique way,”a “culture that understands and respects the diversity ofhuman resources and ways of thinking, and thus leads tothe improvement of corporate value,” as well as a “safework environment for both the mind and body, including
psychological safety” during the period of our Mediumterm Plan.
The source of our value as a company that operates
financial services lies in the staff who work for us.
Therefore, the key to realizing the Group Vision 2030 lies intransforming our corporate culture and helping each andevery employee maximize their potential.

What are the challenges to improving profitability?
As part of our management strategy, we are promoting
the “introduction of innovations to capital solutions” toimprove profitability. Specifically, we are expanding not
only conventional business segments but also peripheral
domains, and venturing to create new businesses and“circular economy-oriented” services. When creating
new businesses and services, it is essential to have aculture that allows diverse human resources with varying

experience, expertise, and values to openly exchange
opinions. In addition, from the perspective of challenges,
we need to encourage each and every employee to take onchallenges, and change our organizations and systems topromote and encourage the taking on of challenges.

Toward corporate culture transformation

As a first step, we have established five standards ofbehavior that should be incorporated into employees’

daily actions based on the Principles (Action Guidelines):
Four Shinka (advance, deepen, update, true value)(please see page19 for details), which were formulated
together with our Group Vision 2030. As of FY2024/3,
we have incorporated these standards into our humanresources evaluation system. The five standards ofbehavior are customer-oriented, self-development, taking
on challenges, speed, and open communication, andthey serve as a system to promote desirable actions. For
example, if a subordinate tries taking on a new initiativethat is different from past practices and it does not lead tosuccess, but they still receive a positive response from theirsuperiors and colleagues, said subordinate is more likely to
try taking on other challenges again in the future. In termsof open communication, we are encouraging innovationin communication, such as by promoting training to makemanagement more aware of psychological safety andunconscious bias. I believe that raising each individual’sawareness of the standards of behavior and having
them change their behavior accordingly will lead to atransformation in corporate culture.

What constitutes a company that employees
can take pride in?

If a person works at a company where they can empathizewith the Group Vision, contribute to resolving social
issues through their daily work, and experience personal
growth, then surely they will be proud to tell their family

and friends about the company they work for. To realize
this, we aim to be a company where all employees arerecognized as important individuals and where the daily
work, while demanding, is truly enjoyable. In other words,
I would like for us to aim to be a company with high levelsof engagement.
Improving engagement is not something that can beachieved in a single step. In addition to the engagement
survey conducted once a year, we plan to measure
the effectiveness of our measures and change them asnecessary by conducting mini-surveys three times a year.
Although we still have a lot of work to do in the future,
we value our excellent culture of keeping promises tocustomers and seeing things through to the end, as wellas trusting the colleagues who work alongside us. At thesame time, we would like to work on corporate culture
transformation so that all employees can play even greaterroles going forward.

● Behavioral evaluation items

The actions that employees should take (Dos) areevaluated as either “Excellent” or “More” for eachbehavioral indicator
Indicator

Dos

Self-development

Always look toward the future

Customer-oriented
Taking on challenges
Speed

Open communication

Take anticipatory action

Take on challenges by asking
how to make things work
Take action first, and makechanges as you go
Openly exchange opinions

Efforts toward open communication (President’s luncheon put inplace based on suggestions from employees)

NEC Capital Solutions Limited Integrated Report 2023 28