Social Performance

Relationship with our Customers

Qualit y Control Polic y
At every stage of our operations, from research and development to manufacturing, sales, customer
service and management, in all sections and all hierarchies, we always strive to adhere to a PDCA management cycle based on actual facts, maintain and improve our products, customer service and thequality of our operations and put our management policies into practice.
A Brief History of Quality Control Activities
Furukawa Electric established a Quality
Control Committee in 1949 and commenced educational activities to raise
employees' awareness of statistical methods and other aspects of quality control
at all our plants. This enabled us to significantly increase quality levels, as well as
increasing operational stability and effi-

ciency. Our quality control initiatives wererecognized in 1952 as Furukawa Electric
was awarded the Deming Application
Prize for achieving distinctive performance improvement through the application of TQM.
In an effort to maintain and improve
quality levels, we have obtained ISO 9001

The Organization for Improved
Quality Levels

Quality Improvement Activities

To guarantee quality at every levelt h r o u g h o u t t h e co m p a ny, w e h ave
established a Central Quality Control
Co mmi t te e w i th dire c t link s to th e
President to oversee the companywide
promotion of quality control activities.
We have also set up Divisional Quality
Control Committees with direct links
to the heads of each division and makeevery effort to maintain and improve
the quality of our products, services andoperations so as to offer continual quality
assurance.
Quality Control Organizational Structure
President
Central Quality Control Committee(Chair: CPO / Members: division heads)

Quality Control Management Meeting(Members: Quality Control Managers
from individual divisions)
Divisional heads

Affiliated companies

Quality Control Manager
Divisional Quality Control Committees

11

In accordance with our basic policy of
putting quality first and implementing
uniform companywide quality control, we
formulate a companywide quality control
policy each year. This then forms the basis
for divisional quality control policies ineach division.
For f iscal 20 0 8, we have set out acompany wide qualit y p olic y geared
towards eliminating all defects through“DAN-TOTSU” (unrivalled) quality activities. To put this policy into practice, we arepromoting quality improvement activities in each division, revolving primarily
around preventive activities and efforts to
cut costs resulting from in-house failings.
We are also implementing a range of
support initiatives, including FR proposal
and QC Circle activities.
Tak ing their name f rom the “ F” of
Furukawa Electric and the “R” of renewal,
reform and rationalization, FR proposal
activities involve employees submitting
ideas on how to improve operations.
Proposals are then implemented andimprovements made in an effort to fundamentally strengthen the company’sbusiness. Such activities continue to yield
substantial results each year.

quality management system certificationin each of our manufacturing divisions,and standardized operations. We continue to make efforts to improve efficiency
and other core aspects of our operations and promote activities designed to
improve levels of quality and customer
satisfaction.

QC Circle activities are small groupbased activities that involve all employees
and harness QC techniques in an effort tomake ongoing improvements in the workplace. Debriefing sessions are held at individual works and on a companywide basis
to report back on the results of activities.
Such sessions have grown substantially inscale in recent years due to the inclusion ofoverseas affiliated companies.
The Flow of Companywide Quality
Control Policy
Fiscal 2008 companywide
quality control policy
Eliminating all defects through “DANTOTSU (unrivalled) quality activities”•• Preventive activities•• Honest onsite implementation based onreal products and real situations

Preventive activities to eliminate defects
careless mistake prevention,
new product audits
Efforts to cut costs resulting
from in-house failings
Improvement activities
FR proposal activities, QC circle activities

Progress with Quality Improvement Activities
As part of the ongoing range of quality
improvement activities we are currently
undertaking, we have managed to significantly reduce customer complaints.
We have successfully reduced complaints
to 27% of levels in fiscal 2001 (as of fiscal
2007). In response to an array of increasingly sophisticated, diverse and complex
customer needs, Furukawa Electric com-bines a wide range of technology, products, services and expertise to help its
customers to generate value.
We have received glowing feedback
f ro m o ur cus to m er s an d have evenreceived awards from numerous clients,
including the special award for weight
reduction technology from Toyota Motor
Corporation.

Customer Complaints (fiscal 2001 = 100)
100

50

0

2001

2002

2003

2004

2005

2006

2007 （Fiscal
year）

Furukawa Innovation Expo ‘07
people visited the event over the twodays, with a great many also attending
the accompanying special seminars
and technical presentations. Despite

being the first such comprehensive
technology exhibition in the Group’s
123 year history, the event was a huge
success.

Reception for invited guests

Welcome lobby

Thematic theater

The Group network

The Advanced Zone: photonic and network technology

The Advanced Zone: electronics

The Future Zone

Special seminar venue

A comprehensive Furukawa ElectricGroup technology exhibition basedaround the theme “sowing the seeds ofvalue creation”, Furukawa Innovation
Expo ’07 was held on October 3 and 4,
2007 at Tokyo International Forum. The
event saw 34 Group companies andfour Furukawa Electric companies joining forces to extensively showcase thebreadth of the Group’s business, thedepth of the Group’s material technology capabilities and the strength of
the Group’s ability to drive technology
forward into the future. A total of 6,309

12

Social Performance

Relations with our Shareholders and Investors
Based on two-way communication with our shareholders and investors, we engage in IR (investor relations)activities in an effort to contribute to society and help enhance our value as a company. We set out specificobjectives for sustainable growth in March 2006 in the form of our 2006-2009 Medium-Term Business Plan,
Innovations 09, and are currently implementing a range of measures geared towards meeting the targets outlined therein, including consolidated sales of ¥1.25 trillion and operating profit of ¥70 billion in fiscal 2009.
Information Disclosure Policy and IR Framework
The Furukawa Electric Group Action
Guidelines state that we will “maintainand improve upon solid, friendly relationships with all of our stakeholders.”
Regulations on the Timely Disclosure of

Corporate Information meanwhile set out
a framework for the disclosure of appropriate information at the appropriatetime.
All IR activities are overseen by the

Chief Financial Officer (CFO) and are managed by the Investor & Public Relations
Unit of the Corporate Strategy Planning
Department.

Relations with Institutional Investors and Securities Analysts
In addition to holding management briefings (covering interim and year-end results
and medium-term plans) for institutional
investors and securities analysts, both domestic and international, we actively organize
meetings all year round. Through results briefings, overseas roadshows and other activities,
we engaged in communication with a total of
899 institutional investors and securities analysts over the course of fiscal 2007 (an increaseof 100 compared to fiscal 2006). As of the endof March 2008, the percentage of company
shares held by overseas investors stood at
22.64%.

Main IR Activities in 2007
January
February Third quarter earnings announced
March Tours of overseas plants
April
Annual earnings announced; Roadshows in US
May
and Europe
June
General Shareholders Meeting
July
August First quarter earnings announced
September Roadshows in Asia; Conference in US and Europe
October Furukawa Innovation Expo ‘07
November Interim earnings announced; Roadshows in Asia
December Tours of overseas plants
End of year briefing session

Returning Profits to Shareholders

Relations with Individual Investors
In fiscal 2007, we substantially upgraded
the Furukawa Electric website (http://www.
furukawa.co.jp/zaimu). We improved theshareholder and investor information section of the website in particular by incorporating a Quick Guide to Furukawa Electricand a Frequently Asked Questions feature
to help people get to know the company alittle better and uploading a range of documents and the latest information for individual investors. Please feel free to take a look.
We have also put in place a system toenable the timely disclosure of important
information, including through a registration-based email IR newsletter service. In
recognition of our efforts, the Furukawa
Electric website was ranked number one in
the nonferrous metal category of the 2007
ranking of listed company websites published by Nikko Investor Relations. As of theend of March 2008, we had a total of 67,698
individual shareholders (an increase of 2,572

13

on the previous year), accounting for 28.7%
of company shares.

The shareholder and investor information (IR) section of the website

Trends in Shareholder Distribution
100%

Securities firms, etc.
Overseas companies

80%

Domestic companies
Financial institutions

60%

Individuals

40%
20%
0%

January 1, 2007

January 1, 2008

（Fiscal year）

In addition to operating a stable dividend policy, we also aim to pay out dividends in line with the medium- to longterm growth strategy set out under our
2006-2009 Medium-Term Business Plan:
Innovation 09.
During fiscal 2007, we paid out interim
and end of year dividends of 3.5 yen per
share apiece, making a total of 7.0 yen per
share, representing a year-on-year dividend increase of 0.5 yen per share.

Relations with our Suppliers

Striving to ensure optimum purchasing on a steady, ongoing basis
Our purchasing policy here at
Furukawa Electric is to “establish strategic
relationships with suppliers to ensure
optimum purchasing on a steady, ongoing basis.” Although we have always
placed a great deal of importance oncooperative relationships with our suppliers, we believe that supplier relations
are becoming even more important interms of making sustainable development a reality. We therefore introduced asupplier evaluation scheme and started

to hold Supplier Meetings in fiscal 2006
in an effort to select suppliers based on
more strategic, transparent criteria.

Supplier Meetings and Supplier Evaluation Scheme
Following on from the first meeting infiscal 2006, we held our second Supplier
Meeting in October 2007. We used theevent, which was attended by approximately 400 of our major suppliers, toprovide an overview of the company andoutline our purchasing policy, as wellas giving a presentation on the historyof technical development at Furukawa
Electric in an effort to help our suppliers
develop a better understanding of ourunique technology. We also explained

details of our supplier evaluation scheme.
Our supplier evaluation scheme covers areas such as quality, price, speed ofdelivery and the reliability of individual
suppliers. In fiscal 2007 we were able tostrengthen mutual understanding andestablish a clearer picture of the current
situation by providing each supplierwith feedback based on their evaluation
results and exchanging opinions. We plan
to continue to hold Supplier Meetingsand evaluate our suppliers in order tostrengthen cooperation with individual
suppliers and establish relationshipsthat are conducive to mutual sustainable
development.

Furukawa Electric Purchasing Policy (outline)● We will establish strategic relationships with suppliers to ensure optimum purchasing● We will guarantee the reliability and safety of materials and supplies and theirsteady procurement● We will employ purchasing methods closely linked to production methods● We will implement global procurement● We will engage in green procurement and enforce complianceThis year’s Supplier Meeting

Promoting CSR Activities in Relation to Procurement
Furukawa Electric promotes compliance initiatives as part of the procurement of materials and supplies in accordance with the Furukawa Electric Group
Action Guidelines. We have also added
a new section to the supplier screen on
our purchasing system to encourage indi-vidual suppliers to provide details of theirlatest CSR initiatives. We intend to promote CSR-oriented procurement whilst
maintaining cooperative relationships
with individual suppliers in the future.

14

Social Performance

Relations with our Employees

Relations with our Employees
Personnel Management Policy
Our basic personnel management
policy is geared towards creating humanresources who are capable of putting fiveprinciples set out in the Furukawa ElectricGroup Credo into practice.
If individual employees abide by applicable laws and rules, act in accordancewith their social and moral responsibilities and interact with others fairly andhonestly, we will be able to establish safe,
healthy working environments and work-

places that are free from irrational discrimination and harassment. We believethat this is crucial in order to get the mostout of the abilities that our employees
have to offer. Based on these foundations,
we are aiming to bring out employees’
creativity by devising a personnel systemthat will harness employees’ various abilities and individual personalities, throughinitiatives such as equal treatment irrespective of age or gender and support

schemes to enable employees to achievea work-life balance.
By combining all of our employees’
individual abilities, creating jobs suited tocurrent needs and providing safe products, we are striving to contribute to asustainable society and create a company
that both motivates its employees andfills them with pride.

Outline of Furukawa Electric’s Personnel System● OJT● OFF-JT

Skill development

Global Business Leader training
Graded training
Education in specialist expertise
External training schemes● Self-development	Support for distance learning andEnglish conversation classes

Remuneration
Recruitment and assignment● New graduates, mid-year

recruitment● Job rotation● Career advancement interview system

Impartial evaluation● Evaluation of performance,

Monetary remuneration

attitude and contribution● Management-by-objective

systemNon-monetary
remuneration● Award schemes

Benefits and welfare

Diverse work patterns and work-life balance support schemes● Pension scheme● Company housing andaccommodation● Savings
and property support● S hareholders association, etc.

Health, safety, fairness and compliance15

Diverse Work Patterns and Work-Life Balance Support Initiatives
In addition to operating a number ofschemes in support of employees’ diverse
working patterns, we also continue toreview areas such as labor management
and personnel systems to enable themto reflect a similar approach in light ofJapan’s dwindling birth rate and aging
society. As well as striving to enhance our
employees’ working lives, we also work
together with our employees to actively
support their personal lifestyles and help
them stay in good health through educational and other initiatives.
In recognition of measures implemented as part of our first phase plan (fiscal
2005-06) in accordance with the Law for
Measures to Support the Developmentof the Next Generation, in fiscal 2007
we were accredited as a company that
actively supports the development of thenext generation. As part of our second
phase action plan (fiscal 2007 onwards)
meanwhile, we have significantly relaxed
requirements to make it easier for male
employees to take paternity leave. We
have also established a system for theprovision of financial support whereby

employees will be able to use carriedover leave in place of maternity/paternity
leave of for the purposes of looking after

Diverse Work Pattern and Work-Life Balance Support Schemes
Scheme/educational
initiative

Purpose and details

Flexible workinghours

We provide lifestyle support to enable employees to work efficiently in line with business demandand strike a work-life balance.

Annual paid leave

We provide employees with up to 25 days annual paid leave (e.g. if an employee has been with thecompany for 11 years or longer)

Consecutive leave

We allow all employees to take three days consecutive leave every year providing that it does notexceed their annual paid leave entitlement. Employees can obtain an additional two days every five
years (up to a maximum of five consecutive days).

Half-day paid leave

Paid leave may be taken in half-day units to enable employees to take care of minor personal errands
on week days.

Congratulatory or
condolence leave

We operate a congratulatory and condolence leave scheme whereby, for example, an employee cantake five days paid leave if their wife gives birth to a child.

Carried-over leave

Up to ten days of annual paid leave can be carried over, for up to five years, and can be used if an employee is ill, providing nursing care, on maternity/paternity leave or looking after their children.

Maternity/paternity
leave (and reduced
working hours)

We provide support over and above legal requirements to enable employees to strike a work-life balance, including partial pay during maternity/paternity leave and the option for employees to work
reduced hours thereafter until their child reaches elementary school age.

We provide support over and above legal requirements to enable employees to strike a work-life
Nursing care leave(and reduced working balance, including enabling employees to take nursing care leave (or the option of working reduced
hours) for up to a year at partial pay.
hours)
Reemployment after
retirement

We operate a reemployment scheme for any employees aged 60 or over who are in good health andwish to remain in work. The duration of reemployment is being increased in phases, with employees
ultimately entitled to be reemployed up to the age of 65 (in response to revised legislation in 2006).

Retirement seminars

We, labor and management, jointly organize seminars every year to provide support to help middleaged and older union members (those aged 50 or older as a rule) to make the most of their time inwork and plan for their life after retirement.

We, labor and management, jointly organize seminars every year to provide individual support to
Middle-age seminars help middle-aged employees (those aged 40 or older as a rule) to stay fit and healthy, including measures to prevent illness.

Recruitment
The table on the right shows figures forthe number of employees recruited overthe last five years. As we continue to expand
our business in line with society’s needs,
we intend to continue to secure person-

their children. As it stands, we are now
entering the implementation stages ofour second phase action plan.

Recruitment Figures
nel to act as the driving force enabling us
to sustain and develop our business in the
future, particularly fair-minded, enthusiastic
personnel with high ethical standards who
are willing to take on new challenges.

(People)Fiscal year
New graduates

2004
34

2005
32

2006
53

2007
71

2008
85

(Female newgraduates)

3

2

6

8

10

Mid-year recruits
Clerical staff
Professional staff

0
1
0

1
2
0

10
0
47

14
10
50

Unknown
Unknown
29* Figures for fiscal 2008 refer to numbers of new

Employment for People with Disabilities
Although we currently exceed the 1.8%
statutory target rate of employment for people with disabilities (1.84% as of March 2008),
we continue to actively promote employment

A group of Furukawa New Leaf workmates share a smile(Chiba Works)

for people with disabilities. Furukawa New
Leaf, a special subsidiary established in 2004,
handles cleaning operations at our Hiratsuka
Work s on a subcontract basis and has aworkforce that includes ten employees withdisabilities. Operations were expanded evenfurther in fiscal 2007, with eight people withdisabilities now employed at our Chiba Works
as well.
We plan to continue to expand employment for people with disabilities via special
subsidiaries and at Furukawa Electric in the
future, with an eye to substantially exceeding
statutory targets.

Number of Employees with Disabilities(as of June 1 each year)
（%）

2.0

1.5

1.0

1.80
1.49
1.32

1.26

2003

2004

2005

1.54

2006

2007 （Fiscal year）

* In April 2004, the exclusion rate set out when the rate of
employment was calculated was lowered, reducing therate of employment.
* Average rate of employment for people with disabilities on
the first of each month from April to the following March.

16

Social Performance

Relations with our Employees

Employee Assignment,
Evaluation and Treatment
We make every effort to assign employees and place them in specific positions
based on their individual motivation andabilities based on the concept of equal
opportunities. As part of such efforts, weoperate a range of consultation schemes
and give employees opportunities toreflect on their career goals.
In terms of employee evaluation andtreatment, we have introduced a personnel incentive scheme to enable employees
to be evaluated and treated fairly depending on the abilities that they display andtheir performance. We are also training
managers in performance evaluation andare working on ways for improving theway in which the system is run.

Education and Training
We believe that our strength as a company stems from the synergy of the abilities of each and every one of our employees and that their abilities improve on apractical level through their day to day
work duties.
In addition to giving individuals the
chance to grow and develop throughtheir work, we also encourage enthusiastic employees to independently develop
their skills by providing opportunities
such as training, distance learning andsupport to help them obtain qualifications.
In fiscal 2006, we launched the Global
Business Leader training program to aid
the development of personnel to carryour business forward into the future.

It is through these training opportunities that we are trying to establish awider awareness of the Furukawa ElectricGroup Philosophy formulated in fiscal
2007. We also focus on training designed
to improve manufac turing capabilities, compliance-related education andhuman rights education aimed at raisingawareness of the importance of respecting human rights and run a number ofother training schemes, including training
for new recruits and employees being
promoted to management positions.

Following on from courses for management staf f in f iscal 2002 and regular
employees in fiscal 2003, a managementled course aimed at sharing expertisewith regular employees in fiscal 2004 andadvanced practical courses for management staff in fiscal 2005 and 2006, in fiscal
2007 we organized a stress management
course for employees aged between 30
and 35.

Health Initiatives
Mental Health Education
Based on the Guidelines for Promoting
Mental Health Care in the Workplaceissued by the Ministry of Health, Laborand Welfare, measures revolve primarily
around annual mental health courses.

Responding to Asbestos-Related Health Issues
During the period from fiscal 2005 to
2006, we once again investigated workplaces that have previously been used tohandle asbestos products and organizedspecial medical examinations for all relevant employees. We also sent out notices
urging retired employees who worked
at the relevant sites to undergo special

medical examinations. Symptoms weredetected in one current employee andeight retired employees (for health card
applications). Also a retired employee
who had worked laying undergroundcables died from mesothelioma, and in
2006, this was confirmed to be an industrial accident. We have notified retired

Healthcare for Employees
Working Long Hours

Promoting Separate Smoking Areas

I n l i n e w i t h t h e L a b o r St a n d a r d s
Bureau’s guidelines, “Measures to be
Taken by Employers to Prevent Health
Impairment Due to Overwork,” we arefocusing on efforts to ensure that any of
our employees working long hours stayin good health, through measures such as(1) enforcing strict work restrictions basedon the results of medical examinationsand (2) operating a consultation system
whereby employees working long hours
are seen by a medical officer.
17

employees who worked at the relevantsite regarding changes to the requirements for issuing health cards in the wakeof revisions to Occupational Health and
Safety Regulations in October 2007 andwill continue to monitor the situation.

In accordance with a 2003 notification “Concerning the
Guidelines for Measures on Smoking in the Workplace,”
issued by the Director-General of the Labor Standards
Bureau, we designated more than 70 smoking rooms in fiscal 2004 in an effort to isolate smoking areas. As a result,the percentage of smokers amongst male employees on acompanywide basis fell from 53.3% in fiscal 2002 to 42.9%
by fiscal 2007. We intend to continue to make every effort toprevent passive smoking in the future, as well as actively promoting nonsmoking.

Smoking Rate (Male Employees)
（%）

60
50

53.3 52.7

48.3

45.7 44.5 42.9

40
30
20
10
0

2002 2003 2004 2005 2006 2007（Fiscal
year）Safet y Ef for ts
We operate according to a set of Companywide Health and Safety Management Guidelines at each of our
premises and companies and continue to implement a wide range of safety activities in an effort to eliminate occupational accidents and illnesses.
Furukawa Electric Group Safety Activities
We established the Safety Management
Liaison Meeting in July to oversee safetyissues at Furukawa Electric Group manufacturing companies and have since started to
implement groupwide accident prevention
activities. In addition to holding two meetings, during fiscal 2007 we also organizeda tour of the Furukawa Electric Mie Works
to assist with the lateral implementation ofsafety measures. We are aiming to improveoverall safety levels through a combinationof preventive measures, such as sharing
details of accidents and safety measuresand lateral implementation, safety education and full inspections of our works.

A tour of our Mie Works

Furukawa Electric Safety Activities●C ompanywide Priority Safety
Activities
We have formulated a number of standardized companywide priority safety targets and are working to prevent industrial accidents in an effort to improve safetylevels at all Furukawa Electric works.
●C ompanywide Priority Safety Targets
for fiscal 2007
・R eduction of accidents due to unsafe
practices
・Promotion of operational standardization
・Comprehensive health and safety education for transferred personnel andtemporary workers● Companywide Health and Safety Group Presentation
Meeting
We under take health andsafety improvement activities
at each of our manufacturing
sites and individual workplaces. 11 groups selected byindividual works then attend
a meeting at our Osaka Works
to present the results of their Companywide Health and Safety
activities.
Group Presentation Meeting

Frequency of accidents resulting in thesuspension of operations
All sectors

Manufacturing

Electric cable manufacturing

Nonferrous metal rolling
Furukawa Electric

2.0
Frequency Rate

● Health and Safety
Management System
Furukawa Electric has a Central
Health and Safety Committee
chaired by the company’s Chief
Social Responsibility Officer(CSRO), the officer in charge ofsafety, and promotes healthand safety activities on a companywide basis. We also haveindividual Health and Safety
Commit tees at each work s,
chaired by the head of the relevant works, and implement
both standardized companywide activities and independent works activities.

1.5
1.0
0.5
0.0

0.27
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007（Fiscal

year）

Frequency of accidents resulting in the suspension ofoperations = (number of deaths or injuries/total working
hours) × 1,000,000● Forklift Truck Safety Skills Competition
We hold companywide competitions aimed at promoting and improving safe andsteady forklift truck driving
skills. A total of 18 drivers fromindividual works and affiliatedcompanies competed in thisForklift Truck Safety Skills Competition
year’s competition.

18

Social Performance

Involvement with Society and Local Communities
Formulating a Basic Policy on Social Contribution Activities
In May 2008 we set out the Furukawa
Electric Group Basic Policy on Social
Contribution Activities.
Although the Furukawa Electric Group
has long since been involved in a rangeof community-based social contribution
activities, we intend to step up activities

Support and Assistanceeven further and fulfill our responsibilities as a member of society in the future,
focusing primarily on three newly determined targets; nurturing future generations, promoting sport and culture andliving side by side with local communities.

Furukawa Elec tric Group Basic Polic y
on Social Contribution Ac tivities
The Furukawa Electric Group will uphold and strengthen the bonds built up with local
communities over more than a century and consistently and tirelessly undertake social
contribution activities, focusing on nurturing future generations, promoting sport andculture and living side by side with local communities as well as contributing to society
through its core operations, to help create a better world for future generations.

We provide support and assistance forvictims of natural disasters and throughenvironmental foundations and othersuch organizations.
Description

Details of support/
assistance

Donations in support of the Sichuan¥20 million
earthquake
Donations in support of the Niigataken¥3 million
Chuetsu-oki earthquake
Chiba Environmental Restoration Fund
¥336,000*We are also involved in and provide support for soil pollution funds and various other environmental organizations.

In other areas, we are engaged in activities such as providing support for welfare
facilities and to enable people with disabilities to be a part of and reintegratethemselves into society.
We organize a charity golf tournament for employees at our Chiba Worksevery year and donate the proceeds tocauses such as the Ichihara Social Welfare
Council and earthquake victims.

Awards from Outside Sources
Honda Award for the Development ofRecycling Technology
At the 2007 National Convention of theInstitute of Electrical Engineers of Japan,
we received the 12th Honda Award for theDevelopment of Recycling Technology fromthe Clean Japan Center for the development of recycled insulated OC wire madefrom cross-linked polyethylene, announced
as part of a three-way joint venture with
Tokyo Electric Power Company and VISCAS
Corporation. The award is open to domestic
researchers and engineers who have published outstanding results relating to thedevelopment of 3R (reduce, reuse and recycle)
technology and came in recognition of ourachievement in becoming the first company
in the world to recycle cross-linked polyethylene (XLPE) into wire sheathing material.

Special Award for Weight Reduction
Technology at the Toyota Global
Supplier Meeting
At the Toyota Global Supplier Meetingat the Nagoya Congress Center in
February 2008, Toyota Motor Corporation
outlined its 2008 global procurement
policy to 441 assembled suppliers andheld an award ceremony for suppliers
receiving awards during fiscal 2007. We
received the special award for weight
reduction technology, which were presented to President Hiroshi Ishihara by
Toyota President Katsuaki Watanabe.

President Ishihara
is presented witha shield by Toyota
President Katsuaki
Watanabe

Kanagawa Prefectural Government
Community-Oriented Factory Award
The award ceremony forthe 12th Honda Awardfor the Development ofRecycling Technology

19

I n D e ce m b e r 20 07, o u r H ir at su k aWork s received the Communit yOriented Factory Award from Kanagawa
Prefectural Government. Presented to

fac tories, research
institutions and otherfacilities actively
striving to contribute to and co e x is talongside their local communities, awards
were given to a total of six facilities in
Kanagawa prefecture.
Minister of Health, Labor and WelfareAward
In conjunction with an adjoining facility for the disabled, Asahi Electric Works’Nagai Plant (Nagai, Yamagata prefecture)
has been running workplace training
schemes aimed at helping people withdisabilities to reintegrate themselves
into society for around 30 years now.
At a national mental health and welfare
event in October 2007, the plant received
a Minister of Health, Labor and WelfareAward in recognition of its local
community andwelfare activities.

Local Community Clean-up Activities
We actively engage in clean-up activities in and around the local communities in the vicinity of each of our works and plants, as well as
nearby coastal, riverside and other locations.

Clean-up campaign along the Inukamigawa
River (Furukawa Automotive Systems)

A joint patrol around the area in the vicinityof Kanda station (Furukawa Logistics)

Volunteer clean-up activities on the Usuiso
coast in Iwaki (Furukawa Battery)

Clean-up campaign at Suzukatoge(Mie Works)

Our exhibit at Eco Fair Ichihara(Chiba Works)

Our exhibit at the Hiratsuka Environmental
Fair (Hiratsuka Works)

Our exhibit at Techno Fair
(Hiratsuka Works)

Taking part in sports day at a school fordisabled children (Furukawa Circuit Foil)

Nikko Waraku Odori Dance (Nikko Works)

Summer Festival (Mie Works)

A tour for elementary school students(Chiba Works)

A family tour (Mie Works)

A work experience scheme for junior highschool students (Shodensha)

Communicating with the Community
We play an active part incommunity events and also
invite the likes of employees’
families and local residents tofestivals and other events heldon company premises in aneffort to strengthen community ties and promote exchange.

We invite students andteachers from local elementaryand junior high schools andemployees’ families to comeand take tours of our works andalso actively participate in work
experience schemes for juniorand senior high school students.

As part of a company spirit training scheme at our Chiba Works, wetook on a teacher from Goshogawara Industrial High School in Aomori
prefecture for a period of one year from April 2007. The aim of this scheme
is to enable teachers to experience the workings of a private company forthemselves so that they can provide students with better career guidanceand help prevent job mismatches when new recruits join the company.
The teacher experienced work in four areas of the works (the shop floor,
maintenance, development and site management) and gave a presentation summarizing his experiences at the end of the year.

Measurement experience (Production Technology Development
Center)With the Site Manager

20

Social Performance

Involvement with Society and Local Communities

Social Contribution Activities Overseas
We co ntinu e to ac ti ve l y p ro m otesocial contribution activities at Furukawa
Industrial S.A. Produtos Eletricos (FISA) in
Brazil. Activities during 2007 included thefollowing.
1 Child Development Program for the
FutureThe main aim of this program is toteach local children aged between 10
and 15 who live in potentially dangerous,
poverty stricken areas the basic skills theyneed as members of society, to motivatethem and encourage self-development.
Stage I (started in 2004)
Children come to the FISA workers’
union for half a day three times aweek for classes in subjects such as
English, math, music and computer
skills, taught by volunteers from FISA.
Seventeen children participated in
2007, receiving a total of 340 hours ofeducation.

21

Stage II (started in 2006)
Children who have taken part in StageI (above) over the last three years comein on Saturday afternoons for classes
in subjects such as handicrafts, karate,
athletics, dance and singing, again
taught by volunteers from FISA. 52 children participated in 2007, receiving a
total of 100 hours of education.

4 D onations to public hospitals (equivalent to 1% of income tax)

2 Support for local municipal elementary and junior high schools

Clothing and 4 0 0 kg of fo o d were
donated to hospitals over the course of
2007.

The company donated 65,000 real in2006 and 67,000 real in 2007 in an effort
to help increase the number of children’s
bed available.
5 Food and clothing donations

Children from local schools are invited
to take part in events organized by the
FISA workers’ union and presents are
given to 500 students twice a year (atChristmas and Easter).
3 B lood donation program (started in
2004)
A total of 62 bags of blood were donated over the course of 2007.

English classComputer classSinging class

Dance class

Karate class

Handicrafts classSocial Contribution Activities at Individual Works

Chiba Works Working together to put an end to global warming

Toru Kumabe
Manager, Chiba Works

We are working to reduce CO2 emissions at the Chiba
Works based on the slogan “putting an end to global
warming.” We are tackling this issue in various different
ways, from major improvements to our facilities, including
switching fuel from heavy oils and LP gas to city gas (natural gas) and replacing old equipment with new energysaving technology, to improvements on a day to day level,
including diligently turning off lighting, computers andother equipment when not in use and introducing “CoolBiz” and “Warm Biz” schemes to conserve energy from air
conditioners.
As a result of our efforts to create a “beautiful natural environment” last year, we have now completed our
Welcome Garden. We hope that this will send out a clear
environmental message not only to our employees but also
our customers and local residents, acting as proof that wehave made our works into a green environment that exists
in harmony with the community. Please feel free to stop by
and have a look next time you visit the Chiba Works.
In an effort to contribute to and work in harmony withthe local community, we are also actively involved in arange of ongoing initiatives, including environmental education as part of tours for local elementary school children
and employees’ families, participating in Eco Fair Ichihara,
schemes aimed atmaking the area more
beautiful and taking partin the Yawata Seaside
Festival.

The Welcome Garden

Nikko Works Running on over 90% natural energy

Hiroyuki Kamishiro
Manager, Nikko Works

The origins of the Nikko Works can be traced back to thenationalized production of electrical cables required for theindustrial revival during the Meiji era (1868-1912). Crude copper had to be extracted from Ashio Copper Mine and mass
produced to make electrical copper pure enough to be usedin wiring. At that time, the only option was to secure the large
volumes of water and electricity required to manufacture electrical wiring directly. Hydraulic power plants were therefore
built to harness the power of the Daiyagawa River and otherriver systems. This provided a supply of industrial water andled to the establishment of the Nikko Works.
Despite the fact that the works has always consumed a massive amount of energy, from its establishment right through tothe present day, over 90% of that energy is covered by hydraulic power, making it an environmentally friendly works that

doesn’t even use much regular or tap water. Faced with thepressing worldwide challenge of combating global warming,
we undoubtedly owe a debt of gratitude to our ancestors’ foresight. We fully intend to preserve this approach to contributing
to society for future generations as well.
Water conduit pipes

During the Taisho era (1912-1926)

Now

Hiratsuka Works Small-scale full-participation social contribution campaign

Hiroyuki Yokotachi
Manager, Hiratsuka Works

Thanks to advances in health care, medical and welfare
services in Japan in line with the country’s rapid postwar
growth, the number of infant mortalities has fallen substantially. Although we are fortunate enough to lead apeaceful existence here in Japan, we must not forget that agreat many children the world over lose their lives because
they require just a little bit more medical care or support.
In August 2007, we at the Hiratsuka Works launched asmall-scale full-participation social contribution campaign
whereby employees collect used plastic bottle tops, which
are then converted into vaccines to immunize children
around the world against polio courtesy of the NPO
Re-Lifestyle.
As vaccines cost approximately ¥20 per person, it takes
roughly 400 bottle tops (around 1kg) to save the precious

life of one child. As of March 2008, our activities here at the
Hiratsuka Works have saved the lives of around 270 children.
I was really moved upon hearing about this campaign
just after joining the Hiratsuka
Works and put up a bag to collect bottle tops in my kitchen
at home immediately so as to
do my bit to help out with theworks’ small-scale social contribution activities.

22

Social Performance

Social Contribution Activities at Individual Works

Mie Works Environmentally friendly, well balanced management

Nobuo AraiManager, Mie Works

Looking at the scenery along my walk from home towork as it changes through the seasons always reminds mejust how blessed Kameyama is in terms of its natural surroundings. Ever since the Mie Works was first establishedin the city of Kameyama (Mie prefecture) as Furukawa
Electric’s manufacturing base in western Japan in 1971, we
have continued to run operations in a well balanced manner, placing top priority on protecting and contributing
to the environment, not least in the form of securing ISO
14001 certification in 1998. We make every effort to makea social contribution too, including engaging in voluntaryclean-up activities and raising environmental awarenessamongst our employees.
It goes without saying that we have a duty to prevent
pollution. We therefore rigorously control air and water

quality on a daily basis and make sure that we take appropriate action in response to the various forms of pollutionthat continue to be brought to light by advances in science.
We aim to actively promote initiatives geared towards
preserving the natural beauty of Kamei in our capacity as acompany of which the area can be proud.

Clean-up activities in the vicinityof the works

Drainage tanks

Osaka Works Safety and peace of mind right from the front gate!

Tatsuo Yoshisue
Manager, Osaka Works

The only entrance to the Osaka Works accessible to pedestrians and cyclists can use is the main gate. Generally referred
to as the West Gate, the main gate faces onto a road and a sidewalk.
As a number of major manufacturers and haulage companies have moved into the nearby area recently, the number ofdrivers, pedestrians and cyclists passing in front of the West
Gate has increased. The fact that both our employee and visitor car parks are located inside the main gate means that there
is always a large volume of traffic coming and going throughthe West Gate. Moreover, drivers’ view has always been partially obstructed by fencing when they exit onto the road, forcing them to cut across in front of the West Gate and making it
difficult to see approaching cyclists and pedestrians. Eager totake preemptive action to ensure that there are no accidents,

we have therefore made some changes to the fencing in question so as to improve the view of the road. As a result, the West
Gate has been transformed and now benefits from full visibility in both directions.
We will continue to strengthen the Osaka Works’ reputation
for safety and peace of mind, maintaining the utmost respect
and consideration for all those who pass our front gate and livein the local area.

BeforeAfter

Yokohama Works Promoting activities that enable us to contribute to society

Hisaharu Yanagawa
Manager, Yokohama Works

23

In our sixth year since obtaining ISO 14001 certification, this year the Yokohama Works underwent its second renewal inspection.
We continue to promote activities in line with theindividual characteristics of the various componentsthat make up the Yokohama Works, namely our research
center, affiliated companies and head office.
In terms of our research operations, we strive todevelop new products capable of reducing environmental impact and have a hand in new products
through indirect support to help minimize risks during
the research and development process (harmful chemicals, nanomaterials, etc.), increase yield, save energy
and reduce waste. In addition to directly saving energy
and reducing waste, we are also continuing to work on

reducing paper consumption on a priority basis at ourhead office and other administrative divisions.
Our other social contribution activities include therecycling of plastic bottle
tops, which we started lastyear as part of a campaign
to send vaccines to children around the world.

Plastic bottle cap recycling activities