Initiatives for Society
The Furukawa Electric Group values communication with all stakeholders throughout
its corporate operations.
28

Relations with Our Customers

30

Relations with Our Shareholders

31

Relations with Business Partners

32

Relations with Our Employees

37

Relations with Communities

Detailed data is provided in our CSR Data Book (PDF).

http://www.furukawa.co.jp/english/csr/report/index.htm

27

Furukawa Electric Group Sustainability Report 2012

Initiatives for Society

Relations with Our Customers
Furukawa Electric places the utmost emphasis on quality and aims to ensure customer satisfaction while endeavoring to
manufacture excellent products from the customer’s perspective.

Maintaining or Improving the Quality of
Products, Services and Operations
Quality Control Policy
At every stage of our operations, from research anddevelopment to manufacturing, sales, customer service andmanagement, 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
services and the quality of our operations and put ourmanagement policies into practice.

To promote quality control at every level throughout theCompany, Furukawa Electric has established the Central
Quality Control Committee, which reports directly to thepresident, as its topmost quality control body. Under thiscommittee’s direction, Divisional Quality Control Committees,
which have links to the heads of each division make every
effort to maintain or improve the quality of our products,
services and operations.

Status of Activities in Fiscal 2012
In fiscal 2012, we pursued activities in line with the quality
policy introduced in fiscal 2011, placing the utmost emphasis
on quality while endeavoring to manufacture excellent
products from the customer’s perspective. We moved
forward with the following efforts: 1. Visualize design as wellas manufacturing quality; 2. Work to prevent accidents anddefects through experience; and, 3. Conduct quality training
and personnel development programs.
One specific objective was to reduce the number ofcustomer complaints throughout the Company by 10% ormore compared with the preceding fiscal year. As a resultof our efforts in this regard, we lowered the number ofcomplaints by 37%, surpassing our goal. The current level is
92% lower than it was 10 years ago.
Similarly, in fiscal 2013 we will continue efforts in line withthis policy. Through repeated application of the PDCA cycle,
we will endeavor to provide products that satisfy customers.

QC Circle Activities
The Furukawa Electric Group forms its worksite employees
into circles, promoting “QC Circle Activities” targeting quality
improvement and personnel training. In principle, the content
of these activities is left to the discretion of members of eachcircle. However, to ensure that these activities are not merely
temporary, the Company follows up regularly on the statusof activities and comments on their results. This approachencourages the members of circles to raise the level of theiractivities.
Furthermore, each manufacturing works holds QC Circle
Meetings. Circles selected there are invited to participate in
the QC Circle Conference, which takes place annually. Thisconference enables employees to share and compete on
the quality of their activities and provides an opportunity toenhance awareness.
In fiscal 2012, the QC Circle Conference was heldat the Mie Works. Representatives of eight circles frommanufacturing works in Japan and four overseas circles
recommended by individual companies attended andreported on their activities. The circle from FISA, an affiliatedcompany in Brazil, won the silver award for its efforts,
confirming that QC Circle activities are moving steadily ahead
at our overseas locations.

Presentation by FISA-recommended circle

Customer complaints (Furukawa Electric)
(%)

100

Base rate

100

50

0

27

2002

2008

18

16

13

2009

2010

2011

8
2012

Commemorative photo of all participants at the close of the conference(FY)

Furukawa Electric Group Sustainability Report 201228

Initiatives for Society

Relations with Our Customers

Participation in an Experimental Offshore Wind Farm Project
Furukawa Electric is participating in an experimental offshore
floating wind farm project sponsored by the Ministry of
Economy, Trade and Industry.
Offshore wind farms are attracting attention aroundthe world as potential next-generation large-scale power
generation facilities. These facilities harness frequent andpowerful ocean winds to generate electricity, which is thensupplied to land via undersea cables. As they need not belocated on land, wind farms are gaining a following in Japan,
where space for on-land sites for generation facilities islimited. For demonstration experiments on this project, whichis scheduled to last through 2015, three wind turbines capableof generating several thousand kilowatts each, as well as
related equipment, are to be sited in the Pacific Ocean some
20 kilometers off the coast of Fukushima Prefecture.
Furukawa Electric is in charge of developing an ultrahighpressure riser cable* system to transmit the electricity thefacility generates. As the wind farm will be floating rather than
fixed to the ocean floor, it will be easy to site, but equipment
will be easily affected by wind and waves. The riser cablemust also cope with the facility’s rocking on the waves and the
motion of the seawater itself. For these reasons, in addition
to being optimized to meet sea movement and flotation
requirements, the cable must have the same useful life as theturbines themselves, and must have the durability to withstandrepeated fatigue. Furthermore, the system itself must be
raising the voltage in order to transmit massive amounts ofelectricity over a long distance. An optical communication
system is therefore ideal. To overcome these hurdles, we plan
to employ the deepwater design simulation, broad-ranging
material and undersea cable technologies we have cultivated,and optical communication technologies, which meetrequirements for both reliability and cost.
* A permanently suspended submarine cable for connecting to a floating
structure. On an offshore wind farm, this cable connects the wind turbineswith transmission cables on the ocean floor.

Conceptual illustration

High-durability riser cable se behavioral analysis technology toUdevelop a riser cable optimally suited to theocean region and facilities

Riser cable connectors

 evelop connecting and subsidiaryDmaterials that can withstand large
movements in the riser cable

Optical communication system evelop an optical communication systemDsuitable for large-scale wind farms that is
economical and highly reliable

Shanghai, China Technology Fair
To accelerate its development of overseas markets, centering
on emerging countries, the Furukawa Electric Group takes aproactive stance on groupwide overseas marketing and efforts
to expand trading areas. As part of this move, each year since2009 we have held a joint Group technology fair in East Asia topromote our technologies and products.
During fiscal 2012, we held the final exhibition in thisseries, the FURUKAWA Innovation Expo 2011 in Shanghai,on July 22, 2011, at the Shanghai World Financial Center, amultistory high-rise that has become a landmark of the city.
A total of 29 Group companies, including Furukawa Electricand 17 companies based in China, attended the expo.
Themed on the environment, the fair featured 85 products andtechnologies divided into four categories: Smart Grid (energy/
construction), electronics, communications and transportation.
The Company’s president, CMO and CTO also conductedpresentations that covered management strategy and othertopics, and seven technology seminars were held to introduce

29

Furukawa Electric Group Sustainability Report 2012

recent technology trends. Through these presentations
and seminars, we described the Furukawa Electric Group’s
products and technologies and global development strategies,
and communicated our vision for the future. In July 2012,
we hosted another technology fair in Jakarta, Indonesia,
which is attracting attention due to increasing investmentby the infrastructure and automotive industries. In addition
to introducing products and technologies, we explained ourefforts to contribute to industrial development in ASEAN
countries.
Going forward,
we intend to further
expand our businessin various regions,
including Brazil,
India, Europe andthe United States.
Technology Fair in Shanghai

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.

Relations with Individual Investors

Information Disclosure Policy and IR
Framework
The Furukawa Electric Group Basic Policy on CSR requiresthat the Group seeks 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 disclosureof appropriate information at the appropriate time.
Based on this policy, all IR activities are overseen by
the Chief Financial Officer (CFO) and are managed by theInvestor & Public Relations Unit of the Corporate Strategy
Planning Department.
Trends in shareholder distribution(%)

March 31, 2011

March 31, 2012

Individuals

30.0

33.1
38.3

Financial institutions

42.1

Domestic companies

7.2

7.3

Overseas companies

18.0

18.6

Securities firms, etc.

2.7

2.8

In October 2011, we held our fourth plant tour for individual
investors.
Visitors were selected by lottery from among those who
responded to an open invitation, with 189 people invited toattend out of the 1,935 who responded. During the tour,
we offered participants a number of opportunities to get afeel for Furukawa Electric. We introduced our production
processes for optical fibers, copper products and automotive
parts, and visited a hydroelectric power station. The tour
also featured a simple explanation on the phenomenon ofsuperconductivity.
At the opening of this tour, we apologized for and offeredan explanation about the cartel issue. Participants indicatedtheir emotional attachment to Furukawa Electric, but also
said that they wanted us concentrate more heavily oncompliance.

Note: As of March 31, 2012, individual shareholders numbered 69,476 (up1,691 from a year earlier) and held 33.1 % of the Company’s shares.
Note: As of March 31, 2012, foreign shareholders held 18.6% of theCompany’s shares.

Relations with Institutional Investors
and Securities Analysts
In addition to holding management briefings (covering interim
and year-end results and mid-term plans when announced)
for institutional
investors andsecurities analysts,
we actively encouragecommunication all
year round.
Briefing for institutional investors

Nikko Works: Experiment to explain
the phenomenon of superconductivity

Mie Works : A close-up look at
just-produced 1100°C copper rod

Returning Profits to Shareholders
The basic policy of the Company is to pay stable dividends
and, at the same time, distribute profits to shareholders
commensurate to its future business operations, with an eye
on future income trends from a long-term perspective.
For the fiscal year ended March 31, 2012, we paid aninterim dividend of ¥2.5 per share. However, the Company
decided to forego the year-end dividend, owing to a
substantial decline in consolidated operating income, as wellas the posting of a significant net loss.

Main IR activities in fiscal 2012 (Furukawa Electric)
April–JuneMay
Term-end results announcement
June
Visits from European investors
June
General Shareholders’ Meeting
June
Shareholders’ Report issued

July–September

AugustFirst quarter earnings announced

October–December
October
Plant tours for individual investors
November
Second quarter earnings announced
NovemberMeetings in Singapore and Hong Kong
November
Forum for investors in Japan

January–March

February
Third quarter earnings announced

Furukawa Electric Group Sustainability Report 201230

Initiatives for Society

Relations with Business Partners
Furukawa Electric’s Group purchasing policy calls for stable and continuous purchasing on optimum terms. Therefore,
we focus on establishing and maintaining relationships of trust with our business partners.

Optimum Purchasing on a Steady,Ongoing Basis
Furukawa Electric’s Group purchasing policy is toestablish strategic relationships with business partners toensure optimum purchasing on a steady, ongoing basis.
Based on this policy, Furukawa Electric strives to create
cooperative relationships based on mutual trust with its
business partners, thereby contributing to sustainable future
development.

Furukawa Electric Group Procurement Policy
We will optimize our procurement through global partnering by:
1. Establishing strategic business relations with trading
partners to create a stable and sustainable procurement
function;
2. Establishing a system to facilitate centralized negotiations
to promote group procurement activities from multiple
locations;
3. Enforcing compliance and contributing to society;4. Securing stable and sustainable procurement of raw
materials and parts for our key products;
5. Achieving medium-term goals through continuous cost
reduction programs;
6. Expanding procurement from optimal locations;
7. Adopting procurement methods that match optimal leadtimes.

Conducting Training on Subcontracting
Transactions
In order to forge sound relationships with business partners
through fair transactions that comply with rules andregulations, the Furukawa Electric Group provides training
for employees on subcontracting transactions.
In fiscal 2012, in addition to continuing with the courses
we have conducted to date, we introduced a new e-learning
program. This program is aimed at ensuring thoroughawareness of the content of the Act against Delay inPayment of Subcontract Proceeds, Etc., to Subcontractors(Subcontract Law).

Partner Meetings and Partner
Evaluation Scheme
The Company seeks to deepen awareness among ourbusiness partners through regularly held Partner Meetings,
where we explain the state of the Company, our purchasing
policy and individual company management strategies.
For fiscal 2012, this meeting was held in August and was

31

Furukawa Electric Group Sustainability Report 2012attended by 95 key business partners.
We also evaluate key business partners on the basis ofquality, technology, price, delivery system, degree of social
contribution and financial condition, and then hold meetings
to provide feedback on our findings. We discuss the resultsof our evaluations withthem to more closelyalign our awareness of
procurement activities.
In fiscal 2012, weevaluated some 330
business partners andprovided feedback toPartner Meetingthem.

Promoting CSR through Procurement
Activities
Based on the CSR Deployment Guideline for Business
Partners that we formulated in fiscal 2011, we take part ininitiatives to ensure that our procurement activities involve
thoroughly compliant and fair transactions and take into
account human rights and safety, and consideration for theenvironment.
In fiscal 2012, we prepared an English-languagetranslation of our new CSR Deployment Guideline for
Business Partners. Using this translation, we aim to instill
compliance awareness in our overseas business partners
going forward, promoting CSR procurement activities
throughout the supply chain.
We will respond to growing societal requests not tomake use of resources procured from mines that neglect
human rights and environmental considerations (so-called“dirty mining”). This effort is designed to encourage ongoing
efforts on the part of our business partners.
WEB

CSR Deployment Guideline for Business Partners

http://www.furukawa.co.jp/sizai/english/guide.htm

Conflict Minerals*
In response to final disclosure regulations set forth in the
U.S. SEC’s Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010, we will ask for the cooperation of ourbusiness partners in confirming the country of origin of themine resources they provide and in not using minerals fromproscribed locations.
* Defined as minerals (tantalum, tin, gold, tungsten or their derivatives) thatoriginate in or near the Democratic Republic of the Congo that may help tofinance armed conflict.

Initiatives for Society

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

Personnel Management Policy

Human Resources Development

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.

Enhancing Training and Educational Programs

THE FURUKAWA ELECTRIC GROUP CREDO
1. Maintain high ethical standards, and value honesty andintegrity above all.
2. Continually improve, innovate, and lead, in every area ofendeavor.
3. Take a hands-on approach that addresses the reality of
every situation—in the office, at the factory, and on site.
4. Be proactive—take the initiative and work with others,
persevering until a solution is found.
5. Maintain open channels of communication between
departments and divisions, so that we can share ideals
and help each other grow.

In other words, we believe that a workplace environmentthat encourages among all employees compliance andconsideration for human rights serves as the foundation
upon which employees can maximize their capabilities.
On this basis, we are devising and introducing a personnel
system that will harness employees’ diverse abilities andpersonalities. This should encourage employee creativity,
setting the cornerstone for “continuous technologicalinnovation.”
Under New Frontier 2012, our mid-term management
plan that went into place in fiscal 2011, we are cultivating a
powerful workforce that will enable us to emerge victorious
amid stringent global competition. We are raising this asa constructive mission for building collaborative ties withaffiliates in Japan and overseas, and are augmenting current
measures and putting new ones in place accordingly.
As part of this initiative, we identify personnel who webelieve will contribute to the development of our businessthrough their advanced specialties, regardless of position. In
fiscal 2012, we introduced a Professional System to provide
better support to these people. The system, which aims tocultivate people who are skilled at bringing about reforms,
clearly identifies specialists in individual domains and seeks
to put them in positions and offer training according aprearranged schedule that will prove helpful in achieving
these objectives. As of April 2012, we had assigned 20
professionals under this program.

We provide various opportunities that encourage employees
who wish to do so to develop their skills through training,
remote learning and by obtaining qualifications. Since fiscal
2009, we have concentrated in particular on fostering
facilitation skills, which are needed to maximize andinvigorate organizational capabilities.
We use multifaceted evaluations when training
managers, helping to foster a sense of collaboration that will
enable them to manage organizations efficiently. Employees
who are about to be promoted to manager are encouraged
to take the initiative to create group discussions in which
they approach a situation logically, find out for themselves
what the issues are, and talk over solutions. We also have inplace an OJT Leader System targeting mid-level managers
to enable them to teach younger people. In addition togroup training, participants in this program share information
about leadership issues and work together to resolve them,encouraging their awareness of responsibility.

Training Leaders Suited for the Global Environment
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.
At the same time, we began leadership training in Japanfor overseas management personnel. Called the Global
Development Program, the training deepens understandingof the Group, and helps managers polish their cultural
skills and leadership abilities through active discourse with
Furukawa Electric’s Japanese personnel. The goal of the
program is to develop personnel who can thrive in the global
environment.

Group deliberation as part of the global development program

Furukawa Electric Group Sustainability Report 201232

Initiatives for Society

Relations with Our Employees

Worksite Innovation Project
Since fiscal 2009, Furukawa Electric has been pursuing
initiatives to bolster the manufacturing capabilities of its
production sites. These activities focus on cultivating
gembaryoku (worksite capabilities) by encouraging people atits production sites to think for themselves and act on theirown initiative for the good of the customer.
We established the Furukawa Electric Group
Gembaryoku Enhancement Training Center at the Yokohama
Works in September 2010 for a variety of group training
programs. Specifically for new recruits, we conduct
programs for both technical and business employees. These
include the Joy of Manufacturing, which provides onsite
experience, and Craftsmanship Training, which fosters
recognition of the dangers of the production site.
In fiscal 2012, we set rank-specific goals for employees
at production sites and commenced a Basic Program aimed
at raising skill levels for all these employees. We put up
posters and distributed “gembaryoku” badges to employees
undergoing training, encouraging them to put into practicethe things that they had learned.
At each manufacturing works, we also conduct Chief
Operator Training, as well as training for mid-level operatorsand younger staff. This training helps to transmit coreknowledge at production sites, raise worksite awarenessand encourage people to pass on technologies and skills.
By providing an opportunity for headquarters and Group
company employees to interact without regard to affiliation,these efforts support the sharing of expertise.

Badges with the “gembaryoku”
logo distributed to trainees

Diversity
Diversity in Hiring
We are actively recruiting non-Japanese personnel andinternational students to support the globalization of ourbusiness. We also host students on internships fromoverseas universities.
We have a number of initiatives underway to recruit
talented personnel. In addition to information exchanges toshare know-how on hiring within the Group, we hold the
Furukawa Electric Group
Forum, at which we conduct
briefings in conjunction withGroup affiliates, and work
proactively to demonstrate
to students the Furukawa
Electric Group’s appeal.

Explaining the content of our businessto international students

CSR Data Book

Hiring the Disabled
Furukawa Electric established Furukawa Newleaf Co., Ltd.
as a special subsidiary in 2004 to actively employ people
with learning disabilities. This is one of our efforts to increase
the percentage of people with disabilities that we employ.
The company handles cleaning operations at thecompounds of our works and currently employs a total of 32
people with disabilities, 11 at the Hiratsuka Works and 21 at
the Chiba Works. The company also provides individualized
guidance on everything from matters of daily conduct in thecompany through the building of good human relationships,
to assist people with learning disabilities in becoming
independent members of society.
We also invite
caregivers with children
with no work experience totour our work and guidancesites, so as to better
understand our efforts
involving the employment
Furukawa Newleaf Co., Ltd., employees
in actionof people with disabilities.
Ratio of employees with disabilities (Furukawa Electric)
(%)

2.00

1.80

1.86

1.85

2009

2010

1.91

1.95

2011

2012

1.54
Basic Program training underway(lecture by experienced officer)

1.50
1.00
0

33

Furukawa Electric Group Sustainability Report 2012

2007

2008

(FY)

Although our employment ratio of people withdisabilities was 1.95% in fiscal 2012, exceeding the statutory
target, we intend to work on further expanding this group of
employees, primarily through our special subsidiary.

Upgrading and Enhancing Workplace
Environments
Introduction of a Volunteer Leave System
To support individual employees’ efforts to participate insocial contribution activities, we have introduced a Volunteer
Leave system for people who have been employed for one
year or more. We set the number of annual leave days that
employees can take under this system at five, encouraging
people to take advantage of this system to volunteer insupport of restoration and reconstruction activities following
the Great East Japan Earthquake. The system went into
place on July 16, 2011.

My Volunteer Activity Report
I participated in volunteer activities
to support reconstruction in the cities
of Rikuzentakata and Ofunato, in
Iwate Prefecture.

Going forward, we plan to enhance the Volunteer
Leave system to support more employee participation inenvironmental contribution activities and increase the use of
the Volunteer Leave program. CSR Data Book

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 tojointly by the HR & Administration Department and the CSR
Division in the event that issues are reported. As of the endof fiscal 2012 there had been no cases of involving humanrights concerns within Furukawa Electric.
Furthermore, from the perspective of prevention, we
have in place a training curriculum that covers employees
from new recruits to top executives, including executives andmanagers at affiliated companies. The curriculum centerson raising awareness, covering such matters as prohibitionof discrimination against female employees, promoting
employment of seniors and people with disabilities, andimproved understanding of Japanese social integration
issues.

Koji Ohta

Ecology & Electronics Laboratories

I took part in volunteer activities to support
reconstruction of the area affected by the Great East
Japan Earthquake for a one-week period starting
September 18. Sleeping in the classroom of a closed
elementary school, we worked from early morning untillate in the evening at picking up rubble strewn acrossfields. The amount of rubble seemed never to decrease;
there is still much work to be done in the stricken region,
and more help is needed.
To participate in this project, I took part in the newly
introduced Volunteer Leavesystem, which makes it
easy to take time off work.
Social contribution is thegoal, which encourages
cooperation from theworkplace.
I hope that more people
will take advantage of thisopportunity to volunteer
for reconstruction support
activities. This is anexperience that is sure to
Work underway in the city ofremain with you.
Ofunato.

Improving the Working Environment throughLabor-Management Opinion Exchanges
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 laborand management. We have conduced such meetingsfor 60 years, since 1952. As of May 2012 we had held
these briefings 119 times. Representatives from labor andmanagement exchange frank opinions and share information
about a broad spectrum of items at these briefings, suchas the business environment, management, and topicalmatters.
We also have in place various committees such as
the Personnel System Exploratory Committee and theCommittee for Studying Shorter Hours that are designed
to improve the working environment, which management
and labor discuss on a daily basis. These discussions
lead to improvements in various systems and strengthen
monitoring functions, such as compliance response and theimplementation status of other CSR activities.

Furukawa Electric Group Sustainability Report 201234

Initiatives for Society

Relations with Our Employees

Occupational Health and Safety
The Furukawa Electric Group health and safety efforts take
into consideration our social responsibility to maintain ahealthy, safe and comfortable working environment.
The Central Health and Safety Committee chaired by theCompany’s Chief Social Responsibility Officer, formulates
our companywide Health and Safety Management
Guidelines and monitors and issues guidance to our worksites concerning their efforts. We also conduct Safety
Management Liaison Meetings throughout the Group forthe sharing of examples of disaster preparedness andinformation about activities.
Furukawa Electric is also constructing labor safety andhealth management systems at each of its works. In addition
to having received certification for our Chiba, Hiratsuka and
Mie works, in fiscal 2012 the Nikko Works also obtained
management system certification* from the Japan Industrial
Safety & Health Association (JISHA). In fiscal 2013, we aim
to receive certification for our Copper Tube Division.
We also hold Group Activity Presentation Meetings
covering our safety activities, and we give awards toexcellent teams. Each year, we hold meetings at each of ourworks, and groups chosen at those meetings participate
in a companywide conference. In fiscal 2012, 13 teams
were selected fromamong the Worksfor presentations at
the Companywide
Presentation Meeting.
* Organizations covered by
the Occupational Safety
Health Management System
are certified as meeting
JISHA standards.

Furukawa Electric has placed “Anzen Dojos” (safety
education centers) at all manufacturing sites to enable
employees to get a sense of the dangers. These centers
are designed as educational facilities where employees
can experience various dangers, such as heavy items,
edged tools, work in high places, revolving equipment andelectricity, to raise their sensitivity to danger.

Reciprocal Patrols
Each month, patrols are conducted at our manufacturing
works to confirm their safety. In addition, once eachyear a person in charge of health and safety at anothermanufacturing works performs a factory check, conducting
inspections from a different point of view to confirm that no
dangers have been overlooked. These checks also serve
as good case studies, providing opportunities for people incharge of health and safety to exchange information. They
also serve to improve the level of safety and health activities
on the part of people conducting the checks and thoseundergoing them.

Labor Accidents
In 2011 (January to December 2011), the frequency of
accidents resulting in absence from work was 0.49 for
Furukawa Electric on a standalone basis and 0.72 for theentire Group.
Frequency of accidents resulting in the suspension ofoperations
Furukawa Electric

2.00

1.77

1.78

Groupwide

1.85

1.95

Manufacturing

1.90

1.83

Companywide conference

Forklift Truck Safety Skills Competition
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
our Works and from other associated companies in our fiscal
2012 competition.
Furthermore, even
operators not taking
part in the competition
train on the competition
courses within theWorks.
The forklift truck safety skills competition

35

Educating Employees at “Anzen Dojos”

Furukawa Electric Group Sustainability Report 2012

All sectors

1.75
1.62

1.61

1.62

0.99

0.98

1.05

0.63

0.58

1.50
0.98

0.98

0.99

1.01

1.02

1.00

0.50

0.74
0.54

0.47
0.30

0

1.09

1.12
0.65

0.72

0.52

0.49
0.27

0.25

0.57
0.37
0.14

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Note 1: Frequency = (Accidents resulting in injury or death / total working
hours) × 1 million
2: Within the graph, figures for “manufacturing” and “all sectors” aretaken from the “Fiscal 2011 Survey on Industrial Accidents,”
conducted by the Ministry of Health, Labour and Welfare.

(FY)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 by such workers with industrial physicians.

2012 within the company overall. As we eventually plan
to go to an entirely smoke-free workplace, we are taking
a multifaceted approach with three main thrusts: sharing
information, supporting efforts to quit smoking and creating
a smoke-free environment).
Smoking rates among Furukawa Electric employees (men)(%)

60

Mental Health Education
Our companywide mental health measures have been inplace since fiscal 2002, and are based on the Guidelines for
Promoting Mental Healthcare in the Workplace issued by the
Ministry of Health, Labor and Welfare.
We invite industrial physicians and nurses to take partas lecturers in education and training programs targeting
managerial and general employees. In the past, such training
has focused on stress control for employees aged 30–35,
as well as approaching mental health in terms of “workengagement*.”
In fiscal 2012, we also held 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 Measuresn 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 andWelfare in February 2010, we have been developing
companywide programs to prevent exposure to passive
smoke and encourage quitting smoking. As a result ofsuch activities, the percentage of smokers among male
employees fell from 53.3% in fiscal 2003 to 33.7% by fiscal

53.3

52.7

48.3

45.7

44.5

42.9

40.6

40

42.0

38.9

33.7

20

0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(FY)

Responding to Asbestos-Related Health Issues
During the period from fiscal 2005 to 2006, we once again
investigated workplaces that previously handled asbestos
products and we organized medical examinations focusedon asbestos for all relevant employees. We also sent out
notices urging retired employees who worked at the relevantsites to undergo medical examinations.
As of March 31, 2012, symptoms have been detected
in one current employee and 10 retired employees. Also,a retired employee who had worked laying undergroundcables died from mesothelioma, and one died from lungcancer. These were confirmed to be industrial accidents.
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 inthe wake of revisions to Occupational Health and Safety
Regulations in April 2009.

Yokohama Works Receives Incentive Award from the Minister of Health, Labour and Welfare
In October 2011, Furukawa Electric’s Yokohama Works received
an incentive award, the fiscal 2012 “Awards from the Minister
for Health, Labour and Welfare for excellent workplaces,
organizations and persons who have contributed related tooccupational safety and health.” This same manufacturing works
received the Kanagawa Prefectural Labor Director Award in 2011.
The current award was in recognition of the works’proactive efforts to prevent damage to health as a result of
long working hours and to improve mental health, measures
to prevent health damage through chemical substancemanagement, and a focus on monitoring the working

environments in areas that are a potential health hazard(hazardous work). The works was evaluated as having “superior
health assurance measures.”Award (left) and letter of commendation (right)

Furukawa Electric Group Sustainability Report 201236

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
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.

CSR Awards

Social Contribution Award

Furukawa Electric established the CSR Awards in fiscal
2010 to recognize the social contribution or environmental
preservation efforts of our subsidiaries that notably exceed
their regular business. In fiscal 2012, the third time for theseawards, we focused on activities rooted in local communities
and regions. Two companies received social contributionawards and one an environmental preservation award.

Furukawa Metal (Thailand) Public Co., Ltd. (FMT)The Kingdom of Thailand

Social Contribution Award

P.T. Tembaga Mulia Semanan (TMS)
The Republic of Indonesia
TMS’s approach is to make small but ongoing social
contributions, and the company has provided support to thepoor in Indonesia in this way since around 1980. Using thecompany’s own funds, as well as employee contributions,
TMS provides funding and food aid, and distributes schoolsupplies for single-mother households and orphans.

Since 2004, FMT has participated in Thailand’s “To Be
Number One” anti-drug campaign, of which Princess
Ubolratana Rajakanya is project leader. The campaign uses
three strategies for its committee, funding and activities:
to campaign for awareness, to provide mental healthimmunization to youth in communities and to develop
lifestyles and networks for prevention and assistance. In
cooperation with local government institutions, as well as
local residents, schools, training facilities and companies,
FMT is taking an active part in raising awareness both within
and outside the company through music and sporting
activities. In recognition of the style and content of these
activities, FMT took part in a nationwide competitioncommemorating 10 years of To Be Number One campaign
activities. FMT’s
team was selected
to represent central
and eastern Thailand.
The competition isscheduled to takeplace over the threeof the activity secretariat selected
day period from July 13 Members
to represent central and eastern Thailand in
the nationwide competition
through 15, 2012.

Child receiving aid to purchase school supplies

Environmental Preservation Award

Furukawa Industrial S.A. Produtos Eletricos (FISA)
Federative Republic of Brazil

Support for widows

37

Furukawa Electric Group Sustainability Report 2012FISA has, on its own initiative, organized the industry’s first
LAN cable collection and recycling program, which covers
the entire country of Brazil. This “Green IT” initiative targets
the collection of used and discarded LAN cable to prevent
it from being incinerated, leading to environmental pollution,with the aim of lowering CO2 emissions. Under this program,participating companies are presented with environmentallyfriendly RoHS-compliant LAN cables in accordance with theamounts FISA collect. The plastic from the recovered LAN

cables is processed at FISA’s plant, and copper wiring issent to copper processing companies for recycling. Some
336 companies have taken part in this project since it got
underway in 2008, collecting a total of 226,483 kg of LAN
cable (as of June 30, 2012).

Donating Disaster Stockpile Food Nearing its BestBy Date (Head Office, Furukawa Electric)
The Furukawa Electric head office maintains a stockpileof food against the eventuality of a Tokyo Metropolitan
Earthquake. In February 2012, we recognized that some
1,800 cans of bread (75 boxes of 24 cans each) in its
stockpile were nearing the end of their March best-by date,
and that we therefore needed to bring in fresher food. Rather
than disposing of still-edible food,the Company decided to distribute
Manufacturing
All sectors
it toFurukawa
thoseElectricin need.Groupwide
We donated1.95 1.90
the food to Second
1.85 Harvest
1.83
2.00
1.77 1.78
1.75
Japan*, delivering it to their office1.62 1.61 1.62
in Asakusabashi on February 29.

Trend in amount of LAN cable collected
Collected cable (second half)

Collected cable (first half)(kg)

80,00069,47935,10960,00029,75240,00020,000011,093

5,338
3,427
2009

34,98027,335

9,970
2010

2011

2012

2013

(FY)

Environmental Contribution Activity
Case Study
Clearing Mountain Pathways (Nikko, Furukawa
Electric)
The Furukawa Nikko mountaineering club of the Furukawa
Electric Nikko Works has a history reaching back 80 years
to the time of the works’ establishment. The club is a core
member of a mountain region federation involving Tochigi
Prefecture and the city of Nikko. Each year, the club cares forthe mountain pathways to prevent mishaps and mountainclimbing accidents. On June 23, 2012, these activities
covered the Mt. Taro region of Okunikko. The club sets up
public notice signboards, upgrades walkways and clears
away brush and roots from mountain pathways with themountain federation members. To promote safe mountainclimbing, the works plans to continue taking part in thisinitiative going forward.

1.50* This NPO gathers still-edible food that has
been disposed of for various reasons anddistributes it to the needy, 1.01
as well1.02
as 1.09
0.98 0.98 0.99
providing it free of charge to welfare
1.00
0.74
institutions and organizations.

1.12 0.99
0.98 1.05
Stockpile of food nearing theend of its best-by date
0.72
0.65
0.63 0.58
Activities
inregions
throughout
Japan
WEB
0.54
0.52
0.49
http://www.furukawa.co.jp/english/csr/social/activity.htm
0.47
0.50
0.57
0.27
0.37
Overseas0.30
Affiliates0.25
Provide Reconstruction
0.14

Supportfor the Region Affected by the Great East(FY)02003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Japan Earthquake
Furukawa FITEL (Thailand) Co., Ltd. (FFT)The Kingdom of Thailand
FFT volunteers made and soldwithin the company T-shirts
emblazoned with FFT’s name. All
the funds they raised in this way,after expenses, were provided as
relief money.

Furukawa Electric Autoparts (Philippines) Inc. (FEAP)
The Republic of the Philippines
FEAP provided its donations and funds solicited throughemployee donations as relief funds through the Philippine
Red Cross Society.
Clearing brush from mountain pathways

Taking away a fallen tree

Setting up a notice board

Providing relief funds via the Red Cross

Furukawa Electric Group Sustainability Report 201238