Producing an employee-friendly
workplace
Improving in-house systems
Human resource development
Safety and health / Disaster prevention

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CSR REPORT 2020

Improving in-house systems

Promoting work-life balance■ Promoting female employees

We are actively working to support balance between

INOAC enables female employees to demonstrate their skills and capabilities, actively seeking out roles for themwork and family life, to have an employee-friendly

and creating environments where they can contribute to the company. Every year, we hold a seminar on
broaden their perspectives and advance their careers. We also hold a seminar every year aimed at male managers

According to our regulations regarding childcare leave,employees are able to take leave until their children

and the company is leading efforts to create a system that supports the success of female employees.

are two years old. Special (paid) leave is also available■ Work related to the enforcement of the Act on the Promotion of Female Participation and Career Advancement in the Workplaceprovided to employees with one child and ten days toto attend to sick or injured children: five days areemployees with two or more children. In addition, weWorkplace in April 2016, we have been engaged in promoting women's success at work with the three goals

offer a system of reduced working hours, which can bebelow. They are designed to encourage female employees to demonstrate their potential and develop their careers

used for up to three years (available until the childin many departments over a period of five years from April 1, 2016 to March 31, 2021.

finishes third grade in elementary school). We alsogives birth to a baby.

Goals* Flextime was changed from “with core time” to “no core time”
on April 1, 2020.

(1) To raise the proportion of female subsection chiefs to that of male subsection chiefs, we will aim to promote
10% of female candidates to the position of subsection chief this term.

(3) We will make the usage rate of managers' annual paid vacation equal to that of general employees.

In order to realize a society where everyone canSince January 2015, we have been actively engaged inexpand their potential, we actively hire persons withcreating an environment in which senior citizens candisabilities. Doing so, we found that employees

effectively put their career skills to use. We are

become more considerate toward others and that it

increasing wages for employees who continue to work

creates heightened awareness.

with us, thereby implementing a system that makes it
worthwhile to rise to positions of responsibility.

24

CSR REPORT 2020

(1) Declaration and publication of company policy
INOAC declares its company policy concerning harassment, including sexual and power harassment.
(2) Establishment of consultation desks
Consultation desks to address harassment in the workplace are established in the Global HR Division in each areaof Japan. We also have dedicated consultation desks for women, and labor union consultation desks.
(3) In-house fact-finding surveys
The Power Harassment Questionnaire is administered annually to all employees to gain an understanding of theactual conditions.
(4) Harassment prevention training
All managers at INOAC are required to attend Harassment Workshops.

Governance & compliance■ Users of the continued employment system

INOAC implements the following measures against harassment in the company.

Supply chain management■ Employing persons with disabilities

Harassment prevention

Producing an employee-friendlyworkplace(2) To find more female candidates for management positions, we will increase the proportion of female
participants in training courses for mid-level employees and subsection chiefs to 10%.

Communication with society

institute five days of special paid leave when a spouse

Improving value

Following the enforcement of the Act on the Promotion of Female Participation and Career Advancement in thePaternity leave (before 1980)
Flextime system (1990)
Regulations regarding family care leave (1990)
Happy Holiday Leave (1991)
Regulations regarding childcare leave (1992)
Regulations regarding measures for maternity healthmanagement (1998)
System for paid half days off (2000)
Family support holiday leave (2005)
Sick/injured childcare leave (2005)
Regulations regarding childcare leave amended (leaveperiod extension) (2005)
System of reduced work hours for childcare (2008)
Family Care Leave (2010)

Harmony with the environment

promoting women’s success at work, aimed at female candidates for management positions to encourage them toworkplace and promote the advancement of women.

■ Support systems to balance work and childcare(year enacted)

Feature story

Diversity efforts

Company profile

Producingan employee-friendly
workplaceHuman resource development

Company profile

Producingan employee-friendly
workplacehuman capital that can drive progress in globalization, INOAC stresses its Global HR Development activities - with a particular focus on younger employees.

The Distance Learning Program and Qualification Acquisition
Support Program are available for employees who are seeking
personal development. The Distance Learning Program offers
100 courses every year and participants get a refund of half thecost upon completion of the course. With the Qualification
Acquisition Support Program, the company sponsors employees
to take qualification exams that are specified in the program
regulations. Through continuous efforts such as these, the entire
company is engaged in supporting personal development.

■ Pre-Overseas Work Training■ Trainee System rollout

INOAC provides special training for employees whoare candidates for overseas posts to give them theskills they will need to be immediately productive inwork environments outside of Japan. This includes
lectures on key points for overseas work by in-house
instructors from various sections, and training by
instructors from outside the company fordeveloping global mindsets and leadership.
In 2019 we held sessions that provided
opportunities for candidates to listen to theexperiences of senior employees posted abroad. In
addition to hearing all the war stories, thecandidates also got to hear about the fulfillingaspects of working overseas.

In 2019 we rolled out the new Trainee System, which allows young employees to experience roughly a year ofpractical training abroad. During the first year we sent trainees to the United States and China, where they
achieved even more there than expected. The local business locations accepting the trainees are also on
board with the aim of our global human resource development, and local staff provide the trainees withattentive instruction. For this system, we are defining professional growth as taking on as many challenges as
possible over the course of a year and learning from both the successes and the failures. Many employees are
now applying to use the system. We are already considering applications for years two and three.

(Foam Product Planning Section, Business Planning Department,High Performance Material Division)

I’ve been a trainee in the United States since
September 2019. I work together with theAmerican engineers on measures againstdefects. During my time here I have participatedin several meetings and studied English in myspare time to bring my language skills up tospeed. As a result, I have been able to state myopinions, understand others, and ultimately
contribute to reducing defects, which has been
an invaluable experience for me as an engineer.

I have been on assignment in Shanghai sinceJuly 2019. After four months of language
training at a local university I underwent mytrainee program in Shanghai under a local
female sales manager. Through this program
I’ve been able to get a feel for the practical skills
required in Shanghai and for the way the local
staff goes about their work, and now I knowwhat challenges I want to take on myself goingforward.

■ English learning support

Governance & compliance

We provide English language lessons to boost our employees’
motivation for learning. Rather than focusing on raising testscores of younger employees, the aim of these lessons is toteach English that can be used in practical business scenarios.
The lessons are provided online, allowing employees to learn intheir preferred environments without needing to travel.
Motivation-building seminars are held before the lessons
With video letters from company officers and directcommunication by outside instructors about the importance ofEnglish, we are creating an environment that motivates young
employees.

Supply chain management

Manami Hayashi(Production Engineering Section, Resin Molding Department,
Global Automotive-related Products Division)

Producing an employee-friendly
workplace

CSR REPORT 2020

Jun Tanaka

Communication with society

As part of our human resources development
efforts, we invite international employees working at
local subsidiaries overseas to the mother plant inJapan and welcome them as trainees to increase
their technical knowledge and improve their skills.
These employees then bring back and utilize theknowledge and experiences they gained in Japan,
thus advancing localization and globalizing ourknow-how. The sections that welcome theinternational employees also gain global
perspectives through this experience.

Comments froma participant

Improving value■ Distance learning program

Harmony with the environment

The INOAC Group began full-scale overseas expansion in the late 1950s, and now operates factories and offices globally in more than 50 locations. In order to develop■ Welcoming international employees

25

Personal development

Feature story

Global human resource development

Safety and health / Disaster prevention

CSR REPORT 2020

1. Large earthquakes◎ Measures to alleviate earthquake damage to buildings and facilities◎ Safety and disaster prevention equipment and stockpiles for earthquakes◎ Post-earthquake response◎ Stockpile of mattresses and other items to contribute to the community
2. Measures against fires, storms, and floods◎ Prevention of fires and explosions in
manufacturing facilities◎ Preparedness and systems for dealing
with storm and flood damage◎ Establishment of a weather
information distribution system
3. Disaster prevention education◎ Establishment of a disaster
Disaster prevention training center
prevention training center

Governance & compliance26

Safety Dojo
(1,000 employees have participated)

We take action according to our Crisis Management Regulations tominimize damage by natural and other disasters, execute accurate first
responses, and ensure early recovery.

Supply chain management

Safety conference

The Safety Dojo lets employees experience potential work hazards in safe
settings using 15 simulators that enable the employees to see, hear andfeel the hazards. The experience helps build workplaces capable ofachieving the zero-disaster standard by making employees moresensitive to potential hazards, training
their ability to predict them, and building
habits in safe work practices.
Employees will be even more alert forpotential disasters thanks to the virtualreality (VR) system we implemented in2020.

Disaster prevention activities

Producing an employee-friendly
workplace

1. Summary from the FY 2019 Conference(1) Reports on safety, health and disaster prevention activities(2) Statistics and analysis of disasters in the INOAC Group(3) Notices and changes in the Industrial Safety and Health Act
2. Education and awareness raising to prevent occupational accidents(1) Efforts to prevent occupational accidents• Kyushu and Tohoku (via online connection)
3. Policy for FY 2020
(1) Explanation on safety, healthand disaster preventionactivities in FY 2020
(2) Proposals from the labor union

Developing safety-conscious workers with the Safety Dojo

Heat insulating pavement(reducing road surface temperature by reflecting infrared rays)

Communication with society

Safety Practitioners Conference

Field safety inspection by top management

Managers are improving their skills and knowledge so that they can leadby example.
◎ Establishing mental health and harassment consultation desks◎ Establishing outdoor smoking space to ensure separation of smokingareas◎ Reducing road surface temperature as an environmental measure◎ Organizing learning sessions and trainings by industrial physicians andthe health insurance association◎ Taking preventive measures againstheatstroke

Improving value

Based on the safety principles above, safety is prioritized above all,and this is demonstrated through action. When a risk becomes
known, our established practice is to “stop it, call it in, and wait.”
Our yearly activity plans include activities organized by the Ministryof Health, Labour and Welfare and monthly activities that pastdisasters have taught us to be of critical importance. We strive toimprove the safety, health and disaster prevention levels at all ofour locations by conducting repeated training and improving any
weaknesses we find in our safety, health and disaster prevention
assessments.

The following safety activities are led by top management and attended
by all members of the company.
◎ Central Safety and Health Committee meeting: Held four times per year
◎ Field inspection by officers: Held twice per year
◎ Safety Practitioners Conference: Held six times per year
◎ Safety and Health Committee meeting at each location: Held monthly
Through these activities, INOAC enhances company-wide awareness ofsafety, health, disaster prevention. We hold these meetings on safety tobuild organizational culture
and prevent thereoccurrence of disasters.

Promoting employee healthHarmony with the environment(1) Safety is the basis of the very existence of the company.
(2) All accidents and hazards are preventable.
(3) Safety is achieved through the awareness andresponsible action of each employee.

All INOAC Safety and Health Committee meetings

Feature story

Principles and basic policy for safety

Company profile

Producingan employee-friendly
workplace