Initiatives for Society
The Furukawa Electric Group values communication with all stakeholders
throughout its corporate operations.

Special Feature 2

29

Social Contribution in Brazil

31

Relations with Our Customers

33

Relations with Our Shareholders

34

Relations with Our Supplier-Partners

35

Relations with Our Employees

39

Relations with Communities

Detailed data is provided in our Data Book (PDF).
http://www.furukawa.co.jp/english/csr/report/index.htm
Furukawa Electric Group CSR Report 201128

Initiatives for Society
Special Feature 2 Social Contribution in Brazil

Contributing to Local Development
to Gain Community Respect
Putting Down Roots in Brazil: Contributing
to Industrial Development and Hiring
FISA (Furukawa Industrial S.A.) was launched in 1974 in
Lorena and in 1977 in Curitiba, a city of Brazil’s Paranástate. FISA has since established deep roots in Brazil bypromoting local industrial development and hiring. FISA
focuses on environmental conservation in its efforts tocontribute to local communities, through active programs
to recycle or otherwise properly dispose of used
telecommunications cables, as well as introducing
Brazil’s first Green IT Program in 2008. This program isfor collecting used LAN cables for recycling, which resultsin less environmental impact than disposing of themthrough soil and air-polluting incineration.
The Green IT Program: LAN Cable Recycling

In addition to its environmental conservation efforts, FISA
engages in workplace environment enhancement for
improving health, safety and living standards. FISA also
contributes to local communities through welfare andvolunteer programs, and strives to build soundrelationships with markets and trading partners based on
legal and regulatory compliance. One example of this is
the “Anzen Dojo” (safety education center) system for
employees to improve their work safety skills. In addition,
FISA also conducts the “Preparing Children for the
Future” Project, which offers children in the region
opportunities to become independent adults. The Project
won the Furukawa Electric CSR Award in 2010.
FISA’s CSR Concept

FISA’s Green IT Program for recycling of LAN cables is based on theconcept of harmful substance controls and consideration about global
warming and recycling in its IT products and their manufacture.

Used LAN cable

Advancing CSR in Four Areas

For Eco-Friendly Products•Improve corporate culture•Enhance health, safety, and•Develop environmentallyquality/standard of life
Workplacesound products•Education and training
Environment•Recycle materials•Rational use of natural
resources andRegional
consideration ofEnvironmental
communities
environmental impact conservation•Code of ethics•Partner selection andevaluation•Legal and regulatorycomplianceMarkets•Execute social welfare
programs using tax incentives•Contribute to local
communities•Volunteer programs

Outline of FISA
(Furukawa Industrial S.A.)

BrazilHeadquarters and main plant:
Curitiba, Paraná , Brazil
Plant:
Berazategui, Buenos Aires, Argentina
Salto, Sao Paulo, Brazil
Sales offices:
Sao Paulo Corporate Office, Argentina Branch
Capital: ¥6.1 billion
Number of Employees: 637 (as of May 2011)
Education and training (an Anzen Dojo)

29 Furukawa Electric Group CSR Report 2011

Message from the Quality Office Manager“Preparing Children for the Future” Project Coordinator’s Message

To Everyone Involved in FISA’s
Quality Improvement Efforts

Getting Involved in Preparing
Children for the Future

The fundamental desire of those of
us who oversee and promote CSR
activities at the Quality Office can be
expressed as “Not only to improve
Ms. Jane Regina
product quality, but also to improvede Barros
the lives and well-being of everyone
associated with FISA, and thereby of society as a whole.”
Our multi-faceted scope of activities includes improving
employee safety and satisfaction as well as reducing
environmental impact, while in regard to our suppliers weenforce the prohibition of child labor and demandenvironmental responsiveness. We are in the seventh yearof our educational support program for local children,which brings quality consciousness to local communities.
This program has made great successes through tie-ins
with local schools. Our future goals include further
improvement of worker safety through acquisition of
OHSAS* certification, and broadening the scope of ourquality improvement efforts.

This program, which was launched in
2004, is intended to provide usefulsupport for children’s future
development, rather than the kind of
Ms. Ana Emilia
temporary aid provided byFontes Ramos
donations. The program began witha broad range of supplementary
classes for 10-year-olds centering on
the basic curricula of local publicschools, such as English, reading,moral education, music, sports, andsocial studies. The program is
Ms. Sueli Correia
designed to grow broader in scopeas the children themselves grow, and now targets at
providing support for employment.
In the future we will extend the program to help
students who have completed the training to findemployment. We also would like to offer further support
for their futures that includes activities to improve theunderstanding of their families.

* Occupation Health and Safety Assessment Series international
management system specification

Dental checkup at a plantChildren’s classroom at a plant

Plant production controls

Furukawa Electric Group CSR Report 201130

Initiatives for Society

Relations with Our Customers
Furukawa Electric places the utmost emphasis on quality while endeavoring to manufacture excellent products from thecustomer’s perspective.

endeavoring to manufacture excellent products from thecustomer’s perspective in fiscal 2012 as well, responding
directly to customer issues and offering superior products.

Furukawa Electric’s Quality
Control Policy and Quality Control
Organizational Structure
Quality Control Policy

QC Circle Activities

At every stage of our operations, from research anddevelopment 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, maintainand improve our products, customer services
and the quality of our operations and put ourmanagement policies into practice.
To guarantee quality at every level throughout the Company,
Furukawa Electric has established the Central Quality Control
Committee with direct links to the president to oversee thecompany-wide promotion of quality control activities.
We have also set up Divisional Quality Control
Committees with direct links to the heads of each division,and make every effort to maintain and improve the quality ofour products, services and operations so as to offer continual
quality assurance.

We conduct QC Circle activities at each of our Works as a“bottom-up” approach to supporting quality improvement.
We also hold a company-wide QC Circle Conference
once a year to share information about the QC Circle activities
conducted at each of our Works. The Circles chosen as
representatives of Works at the QC Circle Meetings, as well as
the overseas Group company Circles recommended by eachcompany, participate in the Conference.
The fiscal 2011 company-wide Conference was held at
the Chiba Works, with nine domestic Works Circles and fiveoverseas affiliate Circles in attendance. Representatives ofthe Mie Works received the gold medal for their efforts. The
results of a variety of techniques employed by QC Circles areannounced every year at the company-wide Conference.

Quality Improvement in Fiscal 2011
In fiscal 2011, we set forth a company-wide quality policy
placing the utmost emphasis on quality while endeavoring to
manufacture excellent products from the customer’s perspective.
We engaged in the following efforts to achieve this policy:
1. Visualize design as well as manufacturing quality; 2. Work toprevent accidents and defects through experience; and,3. Conduct quality training and personnel development programs.
We also set out to reduce the number of customer
complaints, targeting a 10% reduction in comparison to theprevious fiscal year for the company overall. As a result ofsetting high targets for each division, we achieved an actual
year-on-year reduction of 24.5%. We will continue with thesame policy of placing the utmost emphasis on quality while

Announcement of Furukawa Electric Shenzhen (China), recommended forthe silver medal

Customer complaints
(%)

100

100

Base rate

50

28
0

31

2002

2007

27
2008

Furukawa Electric Group CSR Report 2011

18

17

13

2009

2010

2011

(FY)

Participants in the company-wide QC Circle ConferenceQuality Improvement Efforts

Furukawa Automotive Systems Holds“Olympic Skills Contest”
Furukawa Automotive Systems, Inc.’s main product, wire
harnesses for automobiles (W/H), are difficult to manufactureusing automated equipment, and are therefore a productthat is assembled by hand. As automakers continue to moveoverseas, Furukawa Automotive Systems has also spread its
overseas bases across the world, and therefore the company
has sought to improve the skill level of its staff everywhereby establishing uniform education and training programs
worldwide. The company’s goal is to offer W/H of identicalsuperior quality no matter by whom or in which country they
were manufactured.
The “Olympic Skills Contest” is a platform for announcing
and sharing the results of that education and training. At thesixth “Contest,” five Japanese teams, two from Vietnam,
three from China, and one each from Malaysia, Thailand, andMexico participated in thecompetition, for a total of
53 competitors. There were
three individual events andone team competition.
Competitors represented
their plants, and helped
each other improve skills
and motivation throughWire harnesses for automobiles
friendly rivalry.

Taping contest (FAPH)

Olympic Skills Contest competitors

Individual Competition Winners
Taping Division

Furukawa Automotive Systems (Hong Kong) (FAPH) Liang Xinti

Parts Attachment
Division

Furukawa Electric Shenzhen (FESZ)

Li Xiaoyan

Hand Crimping
Division

Furukawa Electric Shenzhen (FESZ)

Li XiaTeam Competition Winner
Furukawa Automotive Systems Vietnam (FASV)

Shenzhen, China Technology Fair
The Furukawa Electric Group has been making progress in
expanding commercial rights through lateral marketing activities
across the Group, as well as human resources development. Our
focus is on developing new markets, particularly by expanding
our overseas activities under our New Frontier 2012 mid-term
management plan, which was launched in fiscal 2011. One aspectof this is the holding of Group exhibitions to create opportunities
for communications with new customers.
We held the FURUKAWA ELECTRIC ECO-SMARTTECHNOLOGIES FAIR 2010 in Shenzhen on July 16 of last year,
so as to expand our company presence in South China anddevelop strong local companies. 15 local South China companies
and eight of our Group companies exhibited, offering panel
exhibitions covering 50 products and technologies, as well as four
technical seminars focusing on environmentally sound products.
We also culminated our Asia region marketing activities by holding
the FURUKAWA Innovation Expo 2011 in Shanghai in July 2011,
where we introduced our Group’s technologies and products not
only to Chinese companies, but to other customers developing
international business as well. We intend to conduct similar

activities in other growing regions, such as India and Brazil, so as
to accelerate our global marketing.

Technology Fair in Shenzhen

Furukawa Electric Group CSR Report 201132

Initiatives for Society

Relations with Our Shareholders
Furukawa Electric’s investor relations (IR) focus is on mutual communications with shareholders and investors aimed at
improving our enterprise value.

Information Disclosure Policy and
IR Framework

Relations with Individual Investors

The Furukawa Electric Group Basic Policy on CSR requiresthat we seek to improve upon the sound, friendly relationships
we maintain with all of our stakeholders. Our Own Regulations
on the Timely Disclosure of Corporate Information meanwhile
set out a framework for the disclosure of appropriate
information at the appropriate time.
All IR activities are overseen by the Chief Financial Officer(CFO) and are managed by the Investor & Public Relations Unitof the Corporate Strategy Planning Department.

In fiscal 2011, we held our third plant tour for individual
investors. A total of 208 investors chosen by lot from 1,497
applicants experienced Furukawa Electric by observing
the manufacturing of optical fibers and electric cables andexperiments on superconductivity. Many of the investors
commented on the benefits of gaining a true understanding of
the Company’s technological capabilities and business activities.
As of the end of March 2011, we had a total of 67,785 individual
shareholders (an increase of 3,015 compared to the previousyear), accounting for 30.00% of company shares.

Relations with Institutional
Investors and Securities Analysts

Trends in shareholder distribution

In addition to holding management briefings (covering interim
and year-end results and mid-term plans) for institutional
investors and securities analysts, we actively encouragecommunication all year round. Through results briefings,
overseas road shows and other activities, we engaged incommunication with a total of 1,254 institutional investors andsecurities analysts over the course of fiscal 2011. As of the endof March 2011, the percentage of the Company’s shares heldby overseas investors stood at approximately 18.0%.

Briefing for institutional investors

Securities firms, etc.

Individuals

2.6%

27.2%

Securities firms, etc.

2.6%

Individuals

30.0%

Overseascompanies

Overseascompanies

18.0%

21.6%

March 31,2011

March 31,2010

Domestic
companies

Financial
institutions

Domestic
companies

Financial
institutions

7.1%

41.5%

7.2%

42.2%

Superconductivity experiment
during plant tour

Main IR activities in 2010
January Participation in briefings held by securities companies
February Third quarter earnings announced
March Tours of overseas plants, visits from US investors
April Mid-term management plan announced
May Term-end results announcement, visits from European investors
June General Shareholders’ Meeting; Shareholders’ Report issued
July Business briefings
August First quarter earnings announced
September Visits from US investors
October Plant tours for individual investors
November Second quarter earnings announced
December Tours of overseas plants

33

Furukawa Electric Group CSR Report 2011

Plant tour

Returning Profits to Shareholders
Despite a harsh business environment, Furukawa Electric
maintained its basic policy to pay stable dividends. In fiscal
2011, we paid an interim dividend of 2.5 yen per share and a
year-end dividend of 3.0 yen per share, which added up to anannual dividend of 5.5 yen per share and represented a yearon-year increase of 0.5 yen per share.

Initiatives for Society

Relations with Our Supplier-Partners
Furukawa Electric’s purchasing policy calls for stable and continuous purchasing on optimum terms. Therefore, we focus
on establishing and maintaining relationships of trust with our suppliers.

Striving to Ensure Optimum
Purchasing on a Steady, Ongoing Basis
Furukawa Electric’s purchasing policy is to establish strategic
relationships with suppliers to ensure optimum purchasing
on a steady, ongoing basis. Furukawa Electric will proceed
as outlined below based upon our belief in the need to build
cooperative relationships of trust with our suppliers which will
benefit the sustained growth of our company.

awareness of procurement activities.
In September of fiscal 2011 We held a Partner Meeting
attended by 108 of our main suppliers. We also evaluatedapproximately 280 companies under the Partner Evaluation
Scheme and conducted feedback meetings. We will continue
to conduct and enhance these efforts so as to build evenstronger partnerships.

Furukawa Electric Purchasing Policy (Outline)• We will establish strategic relationships with
suppliers to ensure optimum purchasing• We will guarantee the reliability and safety ofmaterials and supplies and their steady procurement• We will employ purchasing methods closely linked
to production methods• We will implement global procurement• We will engage in green procurement andenforce compliancePartner Meeting

Study Group on Subcontracting Transactions
We are conducting awareness enhancement programs, suchas Subcontracting Transaction Study Groups throughout
the Furukawa Electric Group, in our effort to build soundrelationships with our suppliers through fair trading incompliance with all laws and regulations. In fiscal 2011, 50
employees from 20 affiliated companies participated in lectures
held on subcontracting transactions.

Partner Meetings and Partner
Evaluation Scheme
Furukawa Electric works to establish cooperative relationships
with suppliers by holding regular Partner Meetings, andalso by gaining feedback on the situation at our suppliers
through the evaluations and results provided by our Partner
Evaluation Scheme.
At the Partner Meetings, we provide an overview of theCompany, outline our purchasing policy and explain the
management strategy of each company to enable suppliers
to gain a deeper understanding of our operations. In thePartner Evaluation Scheme, we evaluate suppliers on thebasis of quality, technology, price, delivery system, degreeof social contribution and financial condition, and then holdmeetings to provide feedback on our findings. We explain anddiscuss results during these meetings to more closely align our

Promoting CSR Activities in
Relation to Procurement
In accordance with the Furukawa Electric Group CSR
Code of Conduct, we strive for compliance in our materials
procurement. In August 2010 we established the CSR
Promotion Guideline, which is a compilation of the efforts andCSR philosophy we have developed up to now. We distributed
the Guideline to our suppliers through Partner Meetings and by
FAX, and requested that they comply with it in doing businesswith us. We will continue to promote CSR procurement acrossthe entire supply chain.
Furthermore, we will respond to customer requests toavoid using resources produced by mines that disregard
human rights and the environment (so-called “dirty mining”)
by continuing efforts such as requiring refiners to demonstrate
ethical judgment in selecting mines in accordance with our
CSR Promotion Guideline. Nevertheless, dirty mining is not an
issue that Furukawa Electric can resolve on its own, but rather
must be confronted by the industries involved.

Conflict Minerals
Furukawa Electric has confirmed through our suppliers that thetin we purchase does not consist of “conflict minerals” sourced
from the Democratic Republic of the Congo or other war-tornareas in that region.

Furukawa Electric Group CSR Report 201134

Initiatives for Society

Relations with Our Employees
The Furukawa Electric Group focuses on human resources skill development in our drive toward globalization. We also
are building workplace environments where diversity can flourish.

Personnel Management Policy
Our basic personnel management policy focuses oncontinuously creating human resources who are capable ofputting the Five Principles of the Furukawa Electric Group
Credo into practice on their own initiative. This approach is
woven into our New Frontier 2012 mid-term management
plan, and we are taking up the challenge of revamping existing
initiatives while introducing new measures so as to foster a
powerful workforce and to build collaborative ties with affiliates
in Japan and overseas for ongoing success in the competitive
global arena.

the Group, and helps managers polish their cultural skills andleadership abilities through active discourse with Furukawa
Electric’s Japanese personnel. The goal of the program is todevelop personnel who can thrive in the global environment.

Announcement of Group discussion results (GDP)

Various Human Resources
Development Measures
Training Program for Our Personnel
Management Policy
The strength of a company is equal to the collective abilities
of its individual workers, and at Furukawa Electric we believethat worker skills can be improved in practice through the work
they perform each day. Therefore, we offer the means for eachindividual to grow, via training, distance learning, qualificationacquisition support, and other programs, and support ambitious
employees who take the initiative in skill development.
For example, employees that are about to be promoted to
manager are encouraged to take the initiative to create group
discussions in which they consider a theoretical situation, findout for themselves what the issues are, and talk over solutions.
Also, we newly established the OJT Leader System in fiscal
2011, so as not only to provide know-how through grouptraining to mid-level employees so they can provide guidanceand education to lower-ranking employees, including new
employees, but also to enable them to address concerns thatarise when providing “On the Job Training” to lower-ranking
employees, so they can work together to find solutions. The
program achieves this by encouraging participants to takeresponsibility and gain awareness of the point of view of thepeople they are guiding and training.

Worksite Innovation Project
Furukawa Electric has been engaged in a variety ofmeasures to strengthen the gembaryoku (worksite capability)of manufacturing employees since fiscal 2009. Central
management also regularly participates in determining andconfirming the course of these activities. As part of this effort,
we established the Furukawa Electric Group Gembaryoku
Enhancement Training Center at the Yokohama Works in
September 2010 for a variety of group training programs.
We also launched training for mid-level operators, Chief
Operator Training, and training for younger staff onsite ateach manufacturing works. We are working to increase themotivation of our manufacturing works’ core workforce,
improve and transfer technical ability, and establish ground forsharing know-how through discourse with affiliates and others.
We also execute programs for newly-graduated employeeswith no direct connection to manufacturing, both technical andbusiness employees. These include the Joy of Manufacturing,which is an intro to manufacturing, and Craftsmanship Training,which provides onsite experience in production methods andthe dangers of the production site.

Global Business Leader Training Program(GBL)/Global Development Program (GDP)We launched the Global Business Leader Training Program in
fiscal 2007 for the training of future management personnel.
More than 100 graduates of this program are currently atimportant posts in Furukawa Electric and at our affiliates inJapan and overseas.
In fiscal 2011 we began leadership training in Japanfor overseas management personnel. Called the Global
Development Program, the training deepens understanding of35

Furukawa Electric Group CSR Report 2011

Technical transfer lesson

Group discussion

target, we intend to work on further expanding this group of
employees, primarily through our special subsidiary.

Diversity
Diversity in Hiring
We are actively hiring non-Japanese personnel in responseto the increasing globalization of our business. In addition tomeeting with foreign exchange students in Japan, we are also
hiring abroad.
We hold hiring know-how information exchanges within
the Group for sharing know-how and strengthening ourhiring ability. We
also hold the
Furukawa ElectricGroup Forum,at which we
conduct briefings
in conjunction
with our affiliates.
Data Book
Data compilation

Employees of Furukawa Electric, themselvesformer exchange students, discussing ourcompany with exchange students

Hiring the Disabled
Furukawa Electric established Furukawa New Leaf Co., Ltd.
as a special subsidiary in 2004 to actively employ people withlearning disabilities. The company handles mainly cleaning
operations at the compounds of our works and currently
employs a total of 31 people with disabilities, 10 at the
Hiratsuka Works and 21 at the Chiba Works. The company
also goes beyond workplace training to provide individualized
guidance on everything from matters of daily conduct throughthe building of good human relationships, to assist people
with learning disabilities in becoming independent membersof society. We also invite
caregivers with children withno work experience to tour
our work and guidance sites,
so as to better understand ourefforts in this area.
Although our employment
ratio of people with disabilities
was 1.91% in fiscal 2011,
Appearance check-up to monitor
exceeding the statutory
personal grooming
Ratio of employees with disabilities
(%)

2.00

1.80

1.86

1.85

2009

2010

1.91

1.54

“Refresh” Leave System
We have established a new Refresh Leave System whereby
employees with at least 25 years experience can take from 14
through 31 consecutive leave days per year. The system went
into operation from January 2011.
Up to now we have had a system in which employees
could take three consecutive leave days each year (andfive consecutive leave days every five years) within theirannual leave allotment so as to get relief from the stress that
accumulates over long years of service.
The Refresh Leave System is an expansion of that system.
This system focuses on employees with at least 25 yearsof service, among whom are many in frontline leadership
positions whom we hope will continue to support the coreof our workforce. Not only does the Refresh Leave System
help those workers enliven their performance and enhancetheir work-life balance, we believe it also results in higherorganizational productivity. Data Book
Data compilation

Human Rights Awareness
The Furukawa Electric Group CSR Code of Conduct
stipulates that we work to respect human rights, prohibiting
discriminatory treatment and human rights infringement aswell as prohibiting harassment. We have also established aconsultation desk concerning human rights concerns thatcan be accessed from within or outside the company, andconsultations by employees are promptly responded to by the
Personnel Division and the CSR Promotion Division. As of theend of fiscal 2011 there had been no cases of involving humanrights concerns within the Furukawa Electric Group.
Furukawa Electric also conducts human rights awarenesstraining, not only for all employees, from new recruits throughdirectors, at Furukawa Electric, but also for officers andmanagers at our affiliates. This training covers matters suchas prohibition of discrimination against female employees,
promotion of hiring of seniors and the physically-challenged,
and improved understanding of Japanese social integration
issues. Every year about 150 employees attend.

1.50
1.00
0

2007

2008

2011

(FY)

Furukawa Electric Group CSR Report 201136

Initiatives for Society

Relations with Our Employees

Improving the Working Environment
through Labor-Management
Opinion Exchanges

were selected from among the Works for presentations at theCompany-Wide Presentation Meeting.

Furukawa Electric maintains a basic position that both laborand management should endeavor to engage in sincere
discussions, and therefore we focus on issue resolution anddeepening mutual understanding.
We hold our Central Management Briefings twice
annually for public exchanges of opinion between labor andmanagement. As of May 2011 we had held these briefings 117
times. Representatives from labor and management exchange
frank opinions and share information about a broad spectrumof items at these briefings, such as the business environment,
management, and topical matters.
Also, through the activities of various committees, suchas the Personnel System Examination Committee and theCommittee for Studying Shorter Hours, we discuss thesolutions to daily labor issues, improvements to various
systems, and the strengthening of monitoring functions.
Through these efforts we seek to make continuous
improvements to the working environment.

Forklift accidents are the cause of many serious injuries,
and are often caused by insufficient skills on the part of theoperator. Therefore, we hold our Forklift Truck Safety Skills
Competition, so as to improve awareness and operator skills.
There were 23 entrants from companies affiliated with ourWorks and from otherassociated companies
in our fiscal 2011
competition. Even
operators not taking
part in the competition
train on thecompetition courses
The forklift truck safety skills competition
within the Works.

Occupational Health and Safety
The Furukawa Electric Group health and safety efforts take into
consideration our social responsibility to maintain a healthy,safe and comfortable working environment.
The Central Health and Safety Committee chaired by theCompany’s Chief Social Responsibility Officer, formulates ourcompany-wide Health and Safety Management Guidelines andmonitors and issues guidance to our work sites concerning
their efforts. We also conduct Safety Management Liaison
Meetings throughout the Group for the sharing of examples ofdisaster preparedness and information about activities.
Furukawa Electric is also constructing labor safety andhealth management systems at each of our Works. Afteracquiring Japan Industrial Safety & Health Association (JISHA)compliant OSHMS certification at the Chiba Works in fiscal
2010, our Hiratsuka Works and Mie Works followed suit bygaining certification in
fiscal 2011. Certificationof the Nikko Works
is planned for fiscal
2012. Each workplacealso holds meetings
to announce safetymeasures, and thebest of these receive
commendations. In
Company-Wide Health and Safety Group
fiscal 2011, 13 teams
Activities Presentation Meeting

37

Furukawa Electric Group CSR Report 2011

Forklift Truck Safety Skills Competition

Safety Education
Furukawa Electric has placed “Anzen Dojos” (safety education
centers) at all manufacturing sites to enable employees to geta sense of the dangers involved in working in high places,
electricity, edged tools, and revolving equipment. In fiscal
2011, a total of 2,000 employees, including new recruits, took
part in safety education classes. The Anzen Dojos also offer
practical training to local businesses and organizations.

Materials can be heavier thanthey appear, so the “WeightExperience” lesson helps
prevent injury.

Cutter operation hazards demonstration

Reciprocal Patrols
In addition to the monthly patrols conducted at our Works,
annual inspections are conducted at all Works by safety andhealth staff from other Works.
An inspection conducted from a different point of view canreveal overlooked dangers. Also, both the inspecting party andthe recipient can improve safety levels by learning about eachother’s effective measures.

Labor Accidents

Responding to the Pandemic Influenza Virus

In 2010 (January to December 2010), the frequency of
accidents resulting in absence from work was 0.37 for
Furukawa Electric on a standalone basis and 0.58 for theentire Group.
Frequency of accidents resulting in the suspensionof operations
2.00
1.79

1.77

1.78

1.85

1.95

1.90

1.83

1.75
1.62

1.61

1.50

1.00

0.50

0.97

0.98

0.98

0.99

1.02

1.09
0.74

0.36

0.54

0.47

2002
All sectors

2003

2004

1.12
0.65

0.99

0.98

0.63

0.58

0.52
0.57

0.27

0.30
0

1.01

0.37

0.25
2005

2006

0.14
2007

Manufacturing

2008

2009

2010

Furukawa Electric2011 (FY)Group-wide

Healthcare for Employees Working
Long Hours
In accordance with the Guideline issued by the Labor
Standards Bureau entitled “Measures to be Taken by
Employers to Prevent Health Impairment Due to Overwork,”
we are focusing on managing the health of employees who
work long hours by implementing strict limitations on worktime
based on health checkups and arranging consultations bysuch workers with industrial physicians. Data Book

Mental Health Education

With the CSR Division and Health Management Center taking
leading roles, Furukawa Electric formulated the Basic Policy on
Pandemic Influenza Preparedness and put out a related manualin 2008. At the same time, steps were taken to conduct
preventive education and to stockpile hygienic and medical
supplies, including at overseas bases. We strengthened ouranti-influenza measures in fiscal 2011 by revising the Basic
Policy and manual so as to include responses toward weakerinfluenza strains.

Data compilation

Our company-wide mental health measures have been in placesince 2002, and are based on the Guidelines for Promoting
Mental Healthcare in the Workplace issued by the Ministry of
Health, Labor and Welfare.
We have been moving forward with education programs
conducted by industrial physicians, nurses, and outside
lecturers for managerial and general employees, conducting
stress control seminars as stress prevention support in fiscal
2008 and 2010 for employees between the ages of 30 and 35.
In fiscal 2011, we conducted education and training
approaching mental health in terms of “work engagement*,” aswell as to invigorate individuals and the organization. Beginningin fiscal 2012 we will develop the Pleasant Workplace
Discussion Groups for workplace environment improvement
throughout the company.
* A mental health concept pertaining to motivation, devotion, and energy
regarding work.

Strengthening Smoking Measures
In accordance with the Labor Standards Bureau DirectorGeneral’s 2003 directive entitled “Guidelines on Smoking in the
Workplace”, as well as the “Anti-Passive Smoking Measures”
issued by the Ministry of Health, Labor and Welfare in February
2010, we have been developing company-wide programs toprevent exposure to passive smoke and encourage quitting
smoking. As a result, the percentage of smokers among male
employees fell from 53.3% in fiscal 2003 to 38.9% by fiscal
2011 within the company overall. We will continue to offer
individualized guidance to employees for quitting smoking, andthrough ongoing efforts such as regular interviews we aim tobring the number of smokers down by 10% annually.
Group-wide smoking rates among males
(%)

60

53.3

52.7

48.3

45.7

44.5

42.9

40.6

42.0

38.9

2006

2007

2008

2009

2010

2011

40

20

0

2003

2004

2005

(FY)

Responding to Asbestos-Related
Health Issues
During the period from 2005 to 2006, we once again
investigated workplaces that previously handled asbestos
products and we organized medical examinations focused on
asbestos for all relevant employees. We also sent out notices
urging retired employees who worked at the relevant sites toundergo medical examinations.
So far, symptoms have been detected in one current
employee and nine retired employees. Also, a retired
employee who had worked laying underground cables diedfrom mesothelioma, and in 2006 this was confirmed to be
an industrial accident. We are continuing to deal with this by
notifying retired employees who worked at the relevant site
regarding changes to the requirements for issuing health cards
in the wake of revisions to Occupational Health and Safety
Regulations in October 2007.

Furukawa Electric Group CSR Report 201138

Initiatives for Society

Relations with Communities
The Furukawa Electric Group engages in social contribution from the perspectives of nurturing future generations,promoting sport and culture, and living in harmony with the natural environment and local communities.

Furukawa Electric Group Basic Policy on Social Contribution Activities (Revised in March 2011*)
The Furukawa Electric Group will continuously undertake social contribution activities focusing on nurturing future
generations, promoting sport and culture, and living in harmony with the natural environment and local communities,
in addition to its business-related activities, in order to maintain and strengthen community ties built over centuries
and create a better tomorrow for future generations.
* We changed “living side by side with local communities” to “living in harmony with the natural environment and local communities,” expressing our concern for
the natural environment.

Social Contribution Activities
Cooperation in Career Training for Public
School Teachers
Furukawa Electric began working in cooperation with Minato
Municipal Koyo Elementary and Jr. High School (Odaiba
Gakuen) Career Training Program in August 2010, inviting
two teachers to come for training. The goal of the training
was to learn about management strategy based on the
management philosophy, customer relations, and individual

Odaiba Gakuen (Minato-ku, Tokyo)

Training session

roles in organizations through observing the company, lectures,and experience, and then applying what has been learned inschool management and lesson improvement. We conductedclassroom lectures, observation, and group discussion activities
so that the participants could gain a variety of experiences.
Training Program
LocationContent

Day 1

Furukawa
Electric
Head Office•O daiba Gakuen, Furukawa Electric: Mutual introductions• E xplanation of our Group Credo, Personnel development, andCSR activities

Day 2

Furukawa
Electric Nikko
Works(Participation in our Chief Operator Training Program*)•H istory of Furukawa Electric (classroom lecture)• P lant tour of Nikko Works• R ole of the Chief Operator (classroom lecture, group
discussion)

Day 3

Furukawa
Electric Nikko
Works

•H
 ow to make progress in work (classroom lecture)• A bout compliance (classroom lecture, group discussion)• T our of historical sites such as the Ashio Copper Mine

* Chief Operator Training Program. Participants consider the roles theymust fulfill in the manufacturing process, while covering topics such as thehistory of Furukawa and communications with employees at other Works.

Concluding Training

39

Kaori Watanabe
Teacher, Minato Municipal Koyo Elementary School, Minato-ku, Tokyo

Atsuko Suzuki
Teacher, Minato Municipal Koyo Jr. High School, Minato-ku, Tokyo

The image of the “corporation” had up to now to mymind been of a cold entity, but that has changed thanks
to this experience. The atmosphere at Furukawa Electricis friendly, as are the people there. I got the sense fromeveryone there that they feel strongly about their workand are proud of it.
The content of the training was interesting, and topics
such as “As times change, so too do the necessary
skills,” “It’s difficult to get information across accurately,”and “Assume that only 15% of what you say gets acrossto listeners” made me reconsider how to get information
across to my students in an interesting way. That issomething important to me as a teacher. Furthermore, I
came to understand that “relaying information” throughlessons is difficult.
The things that I saw, learned, and felt during thistraining will be of value to me in relations with my students.

I learned in detail about Furukawa Electric’s history,
management philosophy, and credo, and was able toparticipate in the training along with the Chief Operators.
I got a strong sense that making things is what defines us
as humans, and that companies nurture the people who
make things.
The phrases “Maintain high ethical standards, andvalue honesty and integrity above all” and “Be proactive—
take the initiative and work with others, persevering untila solution is found” from the Furukawa Electric Group
Credo made a particularly strong impression on me. Be
fair and honest in relations with people; don’t be passive,
take the initiative and use the ties you have with others
and cooperation to see a task all the way through. I thinkthese are approaches that are required of teachers.
I learned a lot over those three days. I will be looking
back over what I have learned, because I am sure it will
be useful to me in my teaching.

Furukawa Electric Group CSR Report 2011

CSR Awards
Two Companies Recognized at the 2nd CSR Awards
Furukawa Electric established the CSR Awards in fiscal 2010 torecognize the social contribution or environmental preservation
efforts of our subsidiaries that go beyond their regular business.
In fiscal 2011, we included new items for examination,
including items that are part of regular business such as thedevelopment of environmentally sound products and reducing
the environmental impact of business practices. As a result ofthat examination, the following two companies were selected
for receipt of the Environmental Preservation Award.
Environmental Preservation Award: Asahi Electric WorksCo., Ltd.
At Asahi Electric Works, when a double torsional damper,
which suppresses the transmission line vibration caused bybreezes, is installed, the company provides reprocessing
or new product recycling services by which, for example,
degraded parts of decommissioned or collected old devices
are exchanged for new ones. This process creates ties
between customer and supplier and effectively uses existing
distribution infrastructure, and the award was granted inrecognition of beneficial efforts to reduce transport CO2
emissions as well as costs.
Environmental Preservation Award: Furukawa Electric
Ecotec Co., Ltd.
Ecotec has been involved in the recycling of power cables andother items for 40 years, and has steadily produced results as

our subsidiary. In addition to such results, Ecotec is recognized
for the development of its recycling technologies, which haveenabled it to achieve a 100% recycling rate for discarded fiber
optic cable, which had been difficult to recycle in the past.

Further Development by the 1st CSRAward Recipients
Companies that received the CSR Award in the past havecontinued develop their CSR efforts. We introduce the effortsof two such companies below.
Furukawa Industrial S.A. (FISA)
Receipt of the fiscal 2010 Social Contribution Award enhanced
the motivation of participants in our company’s volunteer efforts
to bring up local children through our workshops. It served asa trigger for the refurbishing of our Project Room. The ProjectRoom is also used for PR activities, and is useful in attracting
new volunteers to the project. We are currently in the planningstages of working together with outside welfare organizations.
(For details about FISA’s activities, see pages 29-30.)
Thai Furukawa Unicomm Engineering Co., Ltd. (TFU)
In fiscal 2011, TFU continued to conduct donation and treeplanting efforts as in fiscal 2010. We also worked with local
clinics to prevent dengue fever by providing insecticide andspraying equipment. We also conducted tree-planting alongwith elementary school children in Prachinburi, about 200 km
east of Bangkok. Along with the tree-planting, we proactively
engaged in new activities, such as refurbishing the toilets at
the elementary school and installing a movable fence to stop
children from running out into traffic.

TFU employees wearing Social Contribution Prize commemorative polo shirts

Regional Activities
Nikko Waraku Dancing
Nikko waraku dancing is an event with a history reachingback to its origin commemorating a visit by the Taisho
Emperor and Empress in 1913. It was held for the first timein two years in August 2010, when the bright costumes andmusical accompaniment of Nikko waraku dancing returnedto the banks of Waraku Pond on the grounds of our Nikko
Works. We will continue to develop this together with the local
community so that waraku dancing can be handed down tofuture generations without interruption and developed as partof the region’s traditional culture.
WEB

Local people enjoying waraku dancing on the banks of Waraku Pond

Activities at Each Region

http://www.furukawa.co.jp/english/csr/social/activity.htm
Furukawa Electric Group CSR Report 201140