Initiatives for Society
Relations with Our Customers
Basic Approach
Each of the Company's divisions has acquired ISO 9001 certification. Through initiatives such as these to standardize
our operations and work consistently to improve quality, we are striving to contribute to society by providing excellentquality products and services from a customer perspective.
Going forward, we will continue endeavoring to further enhance “quality power” throughout Furukawa Electric Groupby developing products that are attractive to our customers, based on a policy of Group-focused management.

Quality Management Policy
At every stage of our operations, from research and development to manufacturing, sales, customer service
and management, in all sections and all hierarchies, we always strive to adhere to a PDCA management
cycle based on actual facts, maintain and improve our products, customer services and the quality of ouroperations and put our management policies into practice.

Organizations for Improving Quality
Furukawa Electric has established Furukawa Electric Group Quality Management Committee, which is chaired by thepresident, as the topmost body for promoting quality management at the Group level. Directed by this committee,
Divisional Quality Management Committees led by divisional heads promote ongoing efforts to maintain or improve thequality of our products, customer services and operations.
Promotion
Framework

President
Furukawa Electric Group
Quality Management Committee

Representative Quality
Management Meeting

Committee chair : President
Committee members : Management
Organizer : General Manager, Quality
Promotion Department

Chair :
General Manager of the Production Technology Division
Members :Quality Promotion Department
Divisional Representative Quality Management

General managers of each business division

Affiliated companies

Representative Quality Management
Divisional Quality Management Committees

Targets and Results (Quality)

Achieved
FY2015

Targets

Strengthening of fundamental
Quality Power educe “failure costs” by 10%-Rfrom fiscal 201432

Partially achieved

Not achieved

FY2016
Results / Achievement

 ontinued a Quality Strengthening-C
Project to select and promote key themes
from the quality improvement activities
previously done by divisions.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Targets

Strengthening of fundamental
Quality Power educe “failure costs” by 10%- R
from fiscal 2015

Initiatives for Society ●●●Efforts to Reduce Failure Costs
The Quality Strengthening Project activities started infiscal 2014 are team activities conducted on key themes
related to failure costs selected by divisions and the
Quality Promotion Department.
There were a total of 15 themes in fiscal 2015, with 28
events for executives held to promote activities.
At the end of the fiscal year, we also held a factfinding presentation event in Quality Strengthening
Projects in order to share examples of improvements
within the whole Group, including our affiliatedcompanies.

Challenges and Future Policy
In fiscal 2015, we engaged in strengthening our monozukuri (manufacturing) capability and set about reducing ourGroup-wide failure costs as a priority goal. Our fiscal 2015 objective was the assessment of Furukawa Electric’s
separate “failure costs” (= failure costs/sales ratio), but we did not achieve this objective.

Messagefrom
Meanwhile,collating and studying the results of our Quality Strengthening Project activities has highlighted our shared
weaknesses.
theGeneralWith the strengthening of these weaknesses in mind, we intend to continue our Quality Strengthening ProjectManagers
activities and subsequently develop a Group-wide plan (or concept) for resolving quality problems.

Message fromthe General
Managers

Message fromthe General
Managers
Kazuhisa Kashihara
General Manager, Quality Promotion
Department, Production Technology Division

In accordance with our basic policy on quality control, we
promote a continuous factbased management cycle at every stage
from research and development to production, sales, service, andadministrative work, in every division, and at every level, thereby
maintaining and improving quality.
To be able to create products that are attractive to customers, we
make thorough checks at every process from product planning
through to the point of sale.
Also, based on the results of analyses of our Quality
Strengthening Project activities, we will promote "standardization"and "objective factual discussions and improvements" particularlly,
and strive to improve the manufacturing process itself.

責任者の
メッセージ

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201633

●●● Initiatives for Society

Relations with Business Partners
Optimum Purchasing on a Steady, Ongoing Basis
Furukawa Electric Group procurement policy is to establish strategic relationships with business partners to ensure
optimum purchasing on a steady, ongoing basis.

Furukawa Electric Group Procurement Policy
We will realize the optimal procurement for Furukawa Electric Group through global partnerships by:
1. Conducting CSR activities and full compliance in purchasing
2. Building strategic relationships with business partners aimed at stable and continuous optimum purchasing
3. Expanding Group and global procurement
4. Constructing BCM for stable procurement and purchasing of raw materials, materials and parts
5. Promoting continuous cost reduction activities in line with business strategy

Conducting Training on Subcontracting Transactions

procurement activities.
Furthermore, based on the results of the assessment

In order to forge sound relationships with businessand our own experiences during the suspended

partners through fair transactions that comply with rules

production that resulted from snow damage atand regulations, Furukawa Electric Group provides

Furukawa Electric’s Nikko Works, we have asked sometraining for employees on subcontracting transactions.

of our business partners for their ongoing cooperation

In fiscal 2015, in addition to continuing with the courses

with initiatives aimed at ensuring business continuation

we have conducted to date, we sought to ensureand stable supplies.

thorough awareness of the content of the Act against
Delay in Payment of Subcontract Proceeds, Etc., toIn fiscal 2015, we evaluated some 157 business
partners and provided feedback to them.

Subcontractors (Subcontract Law).

Promoting CSR in Procurement Activities
Partners Meeting and Partner Evaluation Scheme

Based on our CSR Deployment Guideline for Business

Furukawa ElectricPartners, we engage in procurement activities with “fullseeks to deepen

legal compliance and fair trading practices” andawareness among our“consideration for human rights, safety and thebusiness partners

environment”. We are also continually providing

through regularly held

encouragement at partners’ meetings by explaining thePartners Meeting,state of our efforts to our trade partners, asking for their

where we explain thecooperation with our activities, and so on.

state of the Company, our procurement policy andindividual company management strategies. For fiscal
2015, this meeting was held in June and was attended
by 94 main business partners.

34

Supply Chain BCM (Business Continuity Management)
Furukawa Electric conducts regular questionnaire

We also evaluate main business partners on the basis

surveys on its main partners about their BCM measures.

of quality, technology, price, delivery system, degree ofIn fiscal 2015, we held questionnaire surveys of 238

social contribution and financial condition, and then holdcompanies and placed the results we received from ourmeetings to provide feedback on our findings. In

business partners onto a database. In this way, we haveaddition, we discuss the results of our evaluations with

rapidly identified suppliers with a strong likelihood oft h e m t o m o re c l o s e l y a l i g n o u r a w a re n e s s o fbeing affected by a disaster.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Initiatives for Society ●●●initiatives targeting the responsible sourcing of minerals.

Conflict Minerals (note)
Regarding the handling of conflict minerals, ourapproach to responsible mineral procurement has been
to comply with the code of conduct of the EICC
(Electronics Industry Citizenship Coalition), including
setting a Group policy and informing other Group(note) D efined as minerals (tantalum, tin, gold, tungsten or theirderivatives) that originate in or near the Democratic Republicof the Congo that may help to finance armed conflict.

Challenges and Future Policy
We want to fully grasp the state of our CSR activities
along the supply chain by regularly asking our partners

companies and partners.
In fiscal 2015, in addition to carrying out ongoing

to complete a questionnaire on their understanding ofsurveys into the usage of conflict metals in mainstay

our CSR Deployment Guideline for Business Partners.

products at Furukawa Electric and its group companies,

We will also seek to deepen BCM by giving

we have actively promoted procurement from smelters

encouragement to partners based on the results of ourthat have received accreditation under the EICC’s

BCM questionnaire and manufacturing site survey, with

Conflict-Free Smelter Program. Going forward, in

the aim of improving crisis response levels along theaddition to requesting the cooperation of Group

entire supply chain. Internally, during group training heldcompanies and our business partners in the responsibleat the Procurement Department, we have held training

sourcing of minerals, we will work with the Japanand seminars on the handling of BCM in order to raise

Electronics and Information Technology Industries

awareness among members of the department.

Association (JEITA), an industry organization, on
Targets and Results (Procurement)

Achieved
FY2015

Targets

Strengthen strategic relationships
with partners (suppliers)
 ngoing implementation of the-Opartner assessment system andutilization of feedback discussions-P romote awareness of CSR
Deployment Guidelines among
Messagefromsuppliers

the- EGeneral xamination and implementation of
measures to strengthen the supply
Managers
chain by utilizing BCM questionnaire
surveys and site surveys results
 arry out conflict minerals survey-C(survey for the purposes of
updating data)

Partially achieved

Not achieved

FY2016
Results / Achievement

 onducted partner evaluations of-Cabout 157 main partner companies,
held partners meeting and provided
feedback to them onducted CSR was provided to 238-C
our business partners
 eviewed and increased the-Rnumber of procurement points (andsometimes recommended inventory)
for principle products- Active promotion of conflict materials
surveys (data renewal surveys) andprocurement from smelters that havereceived accreditation under the
EICC’s Conflict-Free Smelter Program

Targets

Strengthen strategic relationships
with partners
 ontinue partner evaluation system-Cand utilize feedback interviews
 ontinue to inform partners about-C
CSR Implementation Deployment
Guidelines-C ommunication with partners witha view to strengthening the supply
chain based on the results of BCM
questionnaire surveys-C onflict mineral survey (data
update survey)- Activity promoted procurementfrom EICC permission smelters

Message fromthe General
Managers

Ever since its foundation, Furukawa Electric has stayed in businessby supplying people with social infrastructure and contributing tosociety as a supplier of products. However, our success is not justthe result of hard works at our company. It is also thanks to thesteady delivery by our suppliers of the raw materials we use to create
products.
In the future, our business environment is likely to change evenmore rapidly. Under these circumstances, we will need to strengthen
Message fromour supply chains further in order to continue contributing to society.
the General
We intend to use partners' meetings and partners’ assessments toManagers
improve the mutual understanding we have with our suppliers, and to
Satoshi Tosaka
General Manager, Procurement Department, continue contributing to society through measures such as the
Finance & Procurement Division
promotion of CSR activities and strengthening of BCM.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201635

●●● Initiatives for Society

Relations with Shareholders
Information Disclosure Policy and IR Framework
Furukawa Electric Group Basic Policy on CSR
requires that the Group seeks to improve upon thesound, friendly relationships we maintain with all of our
stakeholders. Our Own Regulations on the Timely
Disclosure of Corporate Information meanwhile set out aframework for the disclosure of appropriate information
at the appropriate time.

Explanation on the phenomenon of superconductivity

Returning Profits to Shareholders

Based on this policy, all IR activities are conducted by

Furukawa Electric aims for management emphasizing

the Investor & Public Relations Department andcapital efficiency and has made the basic policy of its

overseen by the director in charge of IR, who is General

capitalization strategy to balance strategic investment

Manager of the Finance & Procurement Division.

for growth, the cultivation of the next generation of new
businesses, the improvement of the financial structureR elations with Institutional Investors and Securities Analysts
I n a d d i t i o n to holding management briefings

and returns to shareholders.
Under this basic policy, in the “Furukawa G Plan
2020,” the new medium-term management plan that(covering interim and year-end results and mid-term

started from fiscal year 2016, we will apply management

plans when announced) for institutional investors andresources prioritizing facility investment and R&D for

securities analysts, we actively encourage communication

profit expansion in focus business areas (infrastructure /all year round.

a u t o m o b il e m a r k e t s ) a n d t h e c re a t i o n o f n e w
businesses, strengthen the earning capacity of ourgroup and improve its financial structure, all of which will
support the sustained growth of our group. With regard
to returns to shareholders, we also positions thecontinuation of stable dividends as one of the mostimportant issues of management.
We implemented a term-end dividend of 4 yen per

Briefing for institutional investors

share for the term ended March 2016, an increase of 1
yen compared to the previous year, to increase theRelations with Individual Investors
In October 2015, we held our 8th plant tour forindividual investors. Visitors were selected by lottery

factors such as the results for the term and the progressof reductions in the balance of consolidated interestbearing debts.

from among those who responded to an open invitation,

With regard to dividends for the term ending Marchwith 150 people invited to attend out of the 416 who

2017, we are planning a dividend of 40 yen per share,

responded. During the tour, we offered participants a

the same level as that for the term ending March 2016,*

number of opportunities to get a feel for Furukawa

in overall consideration of an anticipated results forecast

Electric. We

equivalent to the previous term, future businessintroduced ourdevelopment and the return of profits to shareholders.

p r o d u c t i o n*B ased on a resolution of the 194th General Meeting of
Shareholders held on June 27, 2016, we will carry out a reverse
stock split at a ratio of 1 share for every 10 ordinary shares with aneffective date of October 1, 2016. Supposing that this reverse
stock split was not carried out, the term-end dividend for the term
ending March 2017 would be 4 yen per share.

processes for
optical fiber cablesin Mie Works andefforts of R&D in
Optical fiber plant

36

return of profits to shareholders in consideration of

Yokohama Works.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Initiatives for Society ●●●Stock Information and Dividends
General stock information (as of June 27, 2016)

Distribution of ordinary stock among shareholders

Stock Code on theTokyo Stock Exchange
Stock Exchange
Listings
Number of sharesauthorizedCommon stock issued
Minimum trading units
Shareholder register
agent
Fiscal year
Shareholders’ meeting(as of March 31, 2016)

5801

Common Stock

Treasury stock

Domestic companies, others

Tokyo Stock Exchange, First Section

0.07％
462,657 shares

7.15％
50,511,211 shares

2,500,000,000 shares

Individuals,
othersCommon Stock706,669,179 shares
1,000 shares *2-1 Yaesu 1-chome, Chuo-ku, Tokyo, Japan
Mizuho Trust & Banking Co., Ltd.
From April 1 to March 31
June each year

28.99％
204,849,923 shares

Total number ofshares issued andoutstanding

Financial
Institutions
35.32％
249,614,903 shares

706,669,179
Securities
companies

Foreign corporations
26.38％
186,412,596 shares

2.04％
14,383,889 shares*B ased on a resolution of the 194th General Meeting of Shareholders held on June 27, 2016,
we will change the number of shares in a unit of the company’s ordinary shares from thecurrent 1,000 shares to 100 shares with an effective date of October 1, 2016.

Cash dividends per common share (including forecast)

(Yen)
40

40

Year-end

Fiscal year

2013/3

2014/3

2015/330

2016/3

Interim dividend (Yen)

0.0

0.0

0.0
20

0.0

0.0

Year-end dividend (Yen)

3.0

3.0

3.0

4.0

40.0 (note)

Total dividend (Yen)

3.0

3.0

10

3.0 3.0

3.0

4.0
3.0

2017/34.0

40.0 (note)(note) S
 ince we plan to conduct a one-for-ten reverse stock split of our company’s common shares
0 effective October 1, 2016, it is factored into the amount
2012
2013
2014
2015
2016 (FY)
shown here. (The amount will be 4.0 yen if the reverse stock split is not conducted.)

Major top 10 shareholders of the Company and the Company’s capital contributions to such shareholders
Name of major shareholders
The Master Trust Bank of Japan,Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, Mizuho Bank Account)
Japan Trustee Services Bank, Ltd. (Trust Account 4)
Asahi Mutual Life Insurance Co.
FURUKAWA
Messagefrom CO., LTD.
BBH BOSTON CUSTODIAN FOR JAPAN VALUE EQUITY CONCENTRATED
the General
FUND A SERIES OF 620135
Fuji Electric Co., Ltd.
Managers
Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, FURUKAWA CO., LTD. Account)
CHASE MANHATTAN BANK GTS CLIENTS ACCOUNT ESCROW

Number of shares

Shareholding
ratio

36,552,000
30,982,000

5.18%
4.39%

24,135,000

3.42%

23,992,000
13,650,500
13,290,455

3.40%
1.93%
1.88%

12,595,000

1.78%

11,000,000

1.56%

10,919,000

1.55%

10,754,914

1.52%(note) S
 ince we plan to conduct a one-for-ten reverse stock split of our company’s common shares effective October 1, 2016, it is factored into the amount shown
here. (The amount will be 4.0 yen if the reverse stock split is not conducted.)

Message fromthe General
Managers

Message fromthe General
Mami Masuda
Managers
General Manager, Investor & Public
Relations Department, Finance &Procurement Division

Furukawa Electric’s business began with copper smelting and the
manufacture of electric wires. Through more than 130 years, thenumerous products that we manufacture based on our materials
technology support the lives of people around the world in a wide
variety of fields, including telecommunications, electric power
infrastructure and automobile.
However, because we often work behind the scenes, shareholders
and investors often tell us that they feel unfamiliar with the content ofour business.
We renewed our website in June 2016 so that it was easier to understandand people could feel the business of the company more closely. We will
make efforts to transmit appropriate information such as daily news
releases and the like in future too, so please continue to support us.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201637

●●● Initiatives for Society

Relations with Employees
remuneration, and implement individual measures from

Personnel Management

the perspective of “developing skills” with a focus on
strengthening our cultivation of global human resources.

Personnel Management Policy(note 1) This is our vision for human resources at Furukawa Electric Group.

Furukawa Electric Group’s basic approach to humanresources management is to utilize global and diverse
human resources in order to become a corporate groupthat is creative and energetic, and to embody the Group
Philosophy so that we can continue to produce human

Human Resources Development
Enhancement of Education Program

resources capable of contributing to our competitiveness.

We are training human resources who can implement

Please refer to page 24 for “Furukawa Electric Groupinnovation that managements seek. Our aim is to

Corporate Philosophy”.

develop “sensitive personnel who can think and act on
their own initiative” as we maximize our organizational
strength and spread our Group management thinking.

Challenges and Future Policy

The state of our leaders affects corporate culture andIn the 2020 Mid-term Management Plan, whichreflects in our business results, which is why we give

started in fiscal 2016, we set a mission of pursuing

training at each level to develop leadership and thediversity and autonomy in order to continue growing on

human qualities, especially sensitivity, among all our

global markets, improving our ability to respond to

employees. We work hard to cultivate an interest inchanges in the business environment, and realizing

people and a sense of respect for others.

greater creativity and practical capabilities in our“people” and “organizations”. As measures that
contribute to Group Global management, we will focus

Nurturing Leaders Adapted to the Global Sceneon “measures that strengthen top management” andWe started our Global Business Leader (GBL) training“bottom-up measures for reforming our organizationalin 2006 in order to develop personnel who will take on

culture and human resources”.

the role of management in the future. Since fiscal 2013
(note 1),

this has been reformed to Global Mindset Program

which describes our standard value judgments for(GMP), with its extra emphasis on global human resource

Specifically, we will enact the Group HR Vision

formulating personnel strategies and measures at group

education. We have also operated a Global Development

companies, increase the links between personnel

Program (GDP) for overseas local employees since 2010

systems for hiring, job placement, assessment andGlobal Human Resources Training System
Main measures contributing to the Group’s global management

Training global human resources

Expatriates

Top management reinforcement measures evelopment of the training curriculum, as well as
2D
promotion of two-way human resources exchanges
through the overseas dispatch of junior employees, etc.
3 A cceleration of efforts in diversity management(measures to promote women’s careers)38

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Data Base(Conducted throughfiscal 2013)

Global Mindset
ProgramGlobal Development
Program

GMP

Assistant Diversity
Global Mind Set
managers Global Leadership

Mini MBA・Accounting

Recommend key Business Situation
・Strategy, etc.
people in eachdepartment fortraining as
global humanGlobal Challenge
resources

Program

GCP

GDP(For local
employees)

Region-specific training

1E
 nactment of the Group HR Vision, establishment anddissemination of FM-Career Design (new deployment
criteria), and promotion of support for career development

GBL

Sectionmanagers

Personnel management training

Corporate culture reform and personnel bottom-up measures

Global Business Leader

Training just prior to overseas assignment

 ealizing succession plans and strategic personnel
2R
deployment in a way that makes use of humanresources databases

Generalmanagers

Training in basic management knowledge

1R eview of our performance evaluation systemand compensation structure (for executive andmanagement levels)

Teamwork
improvement
workshops atoverseas sites

Initiatives for Society ●●●with the aim of strengthening links within the Group, thecurriculum being par tly shared with the GMP.

Using Diverse Human Resources

Furthermore, in fiscal 2014 we launched the Global

One of our Group’s management philosophy is to

Challenge Program (GCP), which dispatches young“nurture human resources at every level, so that we can

employees to foreign countries. We are working to alignbecome a more diverse and creative organization”. It isthese various programs to develop human resources who

essential for the progress of our Group’s global

can play a dynamic role on the global stage.

management to create a corporate culture in whichmore diverse personnel can succeed.

Project to Improve GENBA-RYOKU Capabilities
In fiscal 2009, we began GENBA-RYOKU training for
all manufacturing on-site employees at our factories. To
date, the training has consisted of foreman training, midlevel worker training, and basic program, with the aim of

In April 2014, we set up a Diversity Promotion Section
to accelerate the creation of a work environment thatgives a greater active role to more diverse personnel.

	
Activities to Support the Success of Women in the Workplace

cultivating “GENBA-RYOKU”, the ability to think andSince fiscal 2005, Furukawa

act for oneself, and boosting the monozukuri capability

Electric has promoted ongoingof the workplace.

initiatives to develop our working
environment for women and topromote work-life balance. In
September 2014, we launched
the “Furukawa “V” Challenge!!” as part of our activities
to promote women’s careers. We have set out thefollowing targets and promoted networking between

7th Training Session for Mid-level
Workers - Nikko Area ParticipantsMonozukuri staff undergoing
GENBA-RYOKU training

female employees and women’s career-building with aview to establishing both “a better working environment”
and “more job satisfaction”, and we have adopted a

In fiscal 2013, we launched GENBA-RYOKU (on-site
capabilities) training for Monozukuri staff (production

comprehensive approach to implementing initiatives

division employees providing on-site support). More thanwhole. In addition to formulating a General Business20 group companies took part in training in fiscal 2014. In

Owner Action Plan under the Act concerning Promotion

fiscal 2015, we launched a special program for allof Women’s Career Activities, which was enacted in

employees to take part in at the base factories of several

April 2016, we have acquired Level Three (the highest

group companies. We will promote a manufacturinglevel) of the “L-Mark”, which is an accreditation forworkplace culture and staff culture that encourages theoutstanding companies in the implementation of

aimed at improving the mindset of the organization as acommon language of “strengthening our GENBA-

initiatives related to the promotion of women’s careers.

RYOKU”. What’s more, we will strengthen our“Monozukuri capabilities” by working together as a united[Objectives related to support the success of

Furukawa Electric Group both in Japan and overseas.

(1) W e aim to double the number of female in the

People Undergoing GENBA-RYOKU Reinforcement Training（No. of GENBA-RYOKU trainees）

600
500

Furukawa Electric

88

400

100
0

42

In order to respond to the global development of our

344

159
156

76
2010

2011

business, Furukawa Electric Group has come together to

189

292

2012

(2) We aim to double the proportion of females hired by 2018.

Group companies

183

300
200

managerial posts by 2018.

Diversity in Hiring

43
423

women in the workplace]

2013

2014

implement a variety of initiatives with the aim of securing
human resources. In addition to information exchanges to237

share know-how on hiring within the Group, we hold
2015

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201639

●●● Initiatives for Society

Furukawa Electric Group Forum held in Tokyo and Osaka,academia-government collaboration, in our role as a

at which we conduct briefings in conjunction with Group

manufacturer Furukawa Electric has taken on numerous

affiliates, and work proactively demonstrate the appeal ofscience and engineering interns with the aim of

Furukawa Electric Group to students.

contributing to the fostering of Japanese technicians of
the future. We have already taken on more than 200

Recruitment figures by gender (Number of employees)
MaleFemaleSpecialized
Total
staff
Foreignnationals
Male
Professional
Femalestaff
Total

FY2012 FY2013 FY2014 FY2015 FY2016
48
26
21
28
45
11
6
5
8
15
59
32
26
36
60
3

0

1

0

0

2
0
2

0
0
0

0
0
0

0
0
0

0
0
0

Encouraging Employment of Disabled People

students across our various workplaces. In recent years,
we have also actively sought to accept students fromoverseas universities in addition to Japanese universities.

Internship training at Nikko Works

Furukawa Electric has established special subsidiary
Furukawa New Leaf in fiscal 2004 for the purpose of
improving our employment rate of disabled people. As of

Reforms to ways of working

March 31st 2016, Furukawa New Leaf employs 40 people

Furukawa Electric established a dedicated organization

who are intellectually challenged, and Furukawa Electricin May 2015 and launched activities to promote “reforms

has an overall disabled employment rate of 2.34%.

to ways of working” with the aim of achieving both

Furukawa New Leaf opened a new operating base insustained growth for the company and lifestyle (life)

fiscal 2013 at Mie Works, in addition to those already atsatisfaction for each individual working at the company.

Hiratsuka Works and Chiba Works, to further increase

We have promoted activities in “Reforming working

our disabled employment rate.

styles”, which aim to improve the productivity of internal
departments and the job satisfaction of individual
employees, and activities in “Reforming our organizational
culture”, which aim to promote “innovation”, “autonomy
and speed” and “collaboration” as the core values of
Furukawa Electric Group. In fiscal 2016, in addition toholding more efficient meetings and simplifying meeting

Furukawa New Leaf employees at work

materials, we took on the challenge of implementing new

Ratio of employees with disabilities (Furukawa Electric)
（％）
2.4

2.29％

2.3

home and promoting smart work using a Group Global
information sharing platform (new groupware).

2.34％

Improving the Working Environment throughLabor-Management Opinion Exchanges

2.2
2.1
2.0

initiatives, such as expanding the scope for working at

1.94％

1.94％

Furukawa Electric maintains a basic position that bothlabor and management should endeavor to engage in

1.9
1.8
2012

2013

2014

2015

(FY)

sincere discussions, and therefore we focus on issue
resolution and deepening mutual understanding.
We hold our Central Management Briefings twice

Internships

40

annually for public exchanges of opinion between laborand management. We have conducted such meetings

Ever since the Japanese government introduced afor 64 years from fiscal 1952. As of May 2016 we hadsystem of internships in 1997 as part of an industry-held these briefings 127 times. Representatives fromFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Initiatives for Society ●●●labor and management exchange frank opinions andcompliance response and the implementation status ofshare information about a broad spectrum of items atother CSR activities.

these briefings, such as the business environment,
management, and topical matters.
We also have in place various committees such as the
Personnel System Exploratory Committee and the

Employee Data Book
Please see the URL below for Employee Data Book.

Committee 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

CSR
http://www.furukawa.co.jp/en/csr/report/

and strengthen monitoring functions, such as
Partially achieved

Targets and Results (Personnel Development and Working Environment)
FY2015
Targets

Results / Achievement

Strengthening of global humanresource training-C onduct Global Development
Program (GDP)- Implement Global Challenge
Program (GCP)- Conducted GDP training- In GCP, assigned 4 people to One-Furukawa
course and 1 person to Frontier course(Mexico)Reinforcement of monozukuri
capability- Visualization of “essential skills”
and “expected skills” by grade
and job type-E xpand GENBA-RYOKU training
to affiliates

 et out the skills that are an absolute-S
requirement for each technician/staff member,
as well as the skills that will be required inthree to five years (expected skills), and clarify
the targets for strengthening GENBA-RYOKU- At affiliated companies (FMGW Shirone (note 1),
create GENBA-RYOKU strengthening plans
and implement GENBA-RYOKU training (basic
program) for all employees

Support for diverse work styles
Messagefromand work-life balancethe- EGeneral xpansion in scope of acquisition
for congratulatory leave in theManagers
event of a spouse giving birth-R eduction in number of employees
taking an extremely low number ofdays of annual paid leave-E xpansion of days of congratulatory leave inthe event of a spouse giving birth, from “upto five calendar days” to “five business days”-D rafting a list of work-life balance systems andpromoting awareness of the list among theemployees- The proportion of employees taking
consecutive days of leave is above 90%

Achieved

Not achieved
FY2016
Targets

Strengthening of global
human resource training-C onduct GDP- Implement GCP
Reinforcement ofmonozukuri capability-B uilding an educational
system to strengthen
Monozukuri capabilities- Implementation of GENBARYOKU strengthening activities
for affiliated companies (Japanand overseas)
Support for diverse ways
of working, and work-lifebalance eduction in number-Rof employees taking an
extremely low number of daysof annual paid leave (ongoing);
expansion in scope of thework-from-home system(note 1) FMGW: Furukawa Magnet Wire Co., Ltd.

Message fromthe General
Managers

For the Furukawa Electric Group to survive and achieve continuous growth in theface of serious global competition, it is essential that all employees with diverse
views, abilities, and backgrounds and regardless of characteristics such as age,gender or nationality, openly share their opinions and act with sincerity.
To strengthen our Group’s global management, the company set up a Diversity
Promotion Section in April 2014 to engage more actively in diversity management.
In particular, we see the pressing issue in supporting the success of women as a
top priority, and have set ourselves quantitative targets.
To raise the overall strength of the Group, we are developing tough humanresource and a more collaborative environment by making career formation andMessage fromhuman resources more fluid through planned allocation. We have done this with theintroduction of FM Career Design, a personnel system that stimulates the ability and
the Generaldesire to face challenges in individuals and the generation of innovative ideas inManagers
organizations, and the Global Challenge Program (GCP) that aims to give overseas
Takashi Fukuda
experience to young employees.
We will continue to actively take the above and other measures in future in order toGeneral Manager, HR & Administration
accelerate the creation of an environment and corporate culture where more diverse
Department, Administration & CSR
human resources play an active role.
Division

責任者の
メッセージ

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201641

●●● Initiatives for Society

Occupational Health and Safety
Basic approach to occupational health and safety management
In a ddi ti o n t o b a s ic le ga lcompliance, Furukawa ElectricGroup prioritizes initiatives that
promote “becoming a safety
conscious person” and “realizing
fundamental safety”. Our basic
approach is to aim for zeroaccidents and zero illness.

Basic policy on health and safety management•E ndeavor to eradicate accidents in accordance with the objectives of thelndustrial Safety and Health Act.
 educe accident risks by realizing “fundamental safety”.
•R•D evelop “safety conscious person” through communications and using the 5S.
•M ake seif-management by building safety and health management systems.
•P ractice Group health management activities through mental and physicalhealth improvement.

Promotion System
Furukawa Electric Group has
established the Furukawa Electric Group
Occupational Health & Safety

Promotion Framework
President

Committee (on which the President

Furukawa Electric Group Occupational
Health and Safety Committee

Representative Safety and Health Meeting

Committee chair : President
Committee members : Management
Organizer : General Manager,
Safety and Environment
Promotion Department
General Manager,
HR & Administration
Department

Chair :
General Manager of the Production
Technology Division
Members:
Divisional Representative Safety and HealthWorks general managers
Safety and Environment Promotion Department
HR & Administration Department

serves as committee chairman) as thehighest body for promoting occupational
health and safety at a group level. The
committee membership is composedof executives, and carries out
deliberation, decision-making andGeneral managers of each business division

follow-up activities for the group as a

Affiliated companies

Representative safety and healthwhole in respect to policies andDivisional occupational health and safety committees

initiatives in health and safety.

Safety and Health Activities Presentation Meetings

Site inspections by officers

We have been holding presentation meetings on the

Furukawa Electric’s

Group’s safety and health activities and awarding thesafety officers make site

best with commendations. In fiscal 2015, twelve teams

inspections at Furukawa

were selected from theElectric Co., Ltd. andS B U s ( i n c l u d i n g fourgroup companies

teams from groupwhenever an accident

companies) to giveoccurs and in accordance

presentations and receivewith performance in the previous fiscal year. They

awards from the president.

FACE (Czech Republic) givinga presentation

Site inspections by officers at
FAPH (China)

confirm how appropriate the safety measures are, andcheck the extent to which these measures have become
firmly established. In addition, they exchange opinionswith a view to achieving fundamental safety, and work

Targets and Results (Accidents)

Achieved

FY2015
Targets

One or less “accidents withworking loss days”

42

Partially achieved

Not achieved
FY2016

Results / Achievement

Two “accidents withworking loss days”

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Targets

One or less “accidents withworking loss days”

hard to prevent any
recurrences. Since fiscal
2015, they have visitedoverseas group companies
and exchange opinions withten of these companies.

Initiatives for Society ●●●Chairman’s Award received from the Japan
Industrial Safety & Health Association

Work Accident Occurrence Status
In terms of its performance in fiscal 2015, Furukawa
Electric recorded two “accidents with working loss days”,
and failed to meet its target of “one or less accidents withworking loss days”. Frequency rate of accidents
resulting in time off work (note 1) at Furukawa Electric Co.,
Ltd. stayed almost unchanged at 0.29, whereas the rate
for the domestic group as a whole note 2) fell to 0.51.
Frequency rate of accidents resulting in time off work(%)

Frequency rate (note 1)

2.0

All industries (note 2)
Whole Group in Japan

Furukawa Electric Co., Ltd. received the FY 2015
Chairman’s Award and a certificate of commendationfrom the Japan Industrial Safety & Health Association.
The entire Furukawa Electric Group was highly praisedfor promoting health and safety activities over many
years based on its “Safety
First” philosophy and for its
outstanding results, which
serve as a model for othercompanies.

Whole manufacturing industry (note 3)
Furukawa Electric

1.62

1.59

1.58

1.05

1.00

0.94

1.66

1.61

1.06

1.06

1.5
1.0

0.72

0.53

0.5

0.49
0.0

At the award ceremony
0.71

0.37

0.40

2012

2013

0.77

The certificate and trophy

0.51

0.28

0.29

improve their ability to respond to various changes. In

20142015 (FY)fiscal 2016, in addition to continuing to implement these(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2015 covered full-time employees andtemporary staff at Furukawa Electric and 37 Group companies in Japan.
See page 59 for companies included in the calculation.
(note 3) Data on all industries and the whole manufacturing industry is from
Ministry of Health, Labor and Welfare survey results

trainings, we will introduce a stress check system in2011

Meanwhile, the 2015 accident frequency rate for thewhole Group including overseas Group companies was
1.23. This included accidents both resulting in and not
resulting in time off work.

accordance with legal revisions.

Strengthening Smoking Measures
In fiscal 2003, we commenced measures to countersmoking in earnest, introducing programs to prevent
exposure to passive smoke and encourage quitting

Healthcare for Employees Working Long Hours

smoking. As a result of such activities, the percentage ofsmokers among male employees has fallen by

In accordance with the Guidelines issued by the Labor

approximately 20 percentage points over 10 years. We

Standards Bureau entitled “Measures to be Taken by

aim to switch to a smoking ban during working hours in

Employers to Prevent Health Impairment Due to Overwork”,

fiscal 2017 and to an entirely smoke-free workplace by

we strive to manage the health of employees who work longfiscal 2020 at the latest, and have continued to adopt a

hours by implementing strict limitations on working hours

multifaceted approach with the following three main

based on the results of health checkups and by arranging

approaches: sharing information, supporting efforts to

consultations for such workers with industrial physicians.

quit smoking and creating a smoke-free environment.

Mental Health Education

Responding to Asbestos-Related Health Issues

We began conducting mental health measures inDuring the period from fiscal 2005 to 2006, we once

fiscal 2002, In the past, stress control training,again investigated workplaces that previously handledworkplace mental health training with a focus on Workasbestos products and we organized medical examinations

Engagement, and Pleasant Workplace Discussion

focused on asbestos for all relevant employees. We also

Sessions aimed at improving the workplace environment

sent out notices urging retired employees who worked athave been implemented across the company.

the relevant sites to undergo medical examinations.

In fiscal 2014 and fiscal 2015, we promoted self-care

As of March 31, 2015, four people have been confirmed astraining and line care training for all employees in their

being involved in industrial accidents (of which thrree persons

early 40s and all middle-ranking managers in order todied), and symptoms have been detected in nine (all retired).
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201643

●●● Initiatives for Society

Relations with Communities
Basic Policy
Furukawa Electric Group has continued to conduct social contribution activities that are rooted in the local
community. Going forward, we will strengthen these actions further along the three dimensions 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 March, 2011）
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.

Implementation of Private Sector Training for Teachers note)

Visiting elementary schools to give classes

In fiscal 2015, we continued the program from fiscal

On February 12, 2016, we visited Ichihara Municipal

2014 and held private sector training for nine elementary

Elementary School in Chiba Prefecture to give a class.

school teachers from Shinagawa Ward in Tokyo from

The theme of the class was “Electromagnets andJuly 28 to 30, 2015. Over the three days, theTechnology to Build the Future”. The aims of the classparticipants learned through seminars, factory visits, andwere for students to increase their interest in studying

internal education and training experiences. Priority wasscience and to learn about the links between studying

given to the joy of making new discoveries and gaining

science and cutting-edge scientific technology, as wella sense of achievement by studying the social

as the connections between everyday life and scientificresponsibilities of schools and companies, as well as totechnology, b y carr ying out e xperiments withcarrying out safety and environmental activities, andelectromagnets. The children were amazed to see thethinking about the meaning of human resources training.

demonstration experiments using superconducting(note) S ponsored by the Japan Institute for Social and Economic
Affairs.

materials.

Training at Furukawa Electric

44

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Giving a class at Ichihara Municipal Elementary School

Initiatives for Society ●●●CSR Awards
Seventh CSR Awards
Furukawa Electric established the CSR Awards to recognize the social contribution or environmental preservation
efforts of our subsidiaries that notably exceed their regular business. CSR Award-winning companies work on a daily
basis to continue contributing to society through these activities.

SocialContributionAward

The Furukawa Battery Co., Ltd.

Environmental
Preservation
Award

Furukawa Electric Industrial Cable
Co., Ltd.

Since fiscal 2012, Furukawa Battery Co., Ltd. has

The Kyushu Plant of Furukawa Electric Industrial

visited elementary schools to give classes on the

Cable Co., Ltd. was facing a major problem in respectenvironment. The theme of the classes is “Future ways

to an increase in industrial waste and rising disposalof using renewable energy”. The classes have given

costs brought about by a rapid increase in its production

opportunities for students to get a real sense of thevolume. It was already implementing environmental

electricity use of the future.

control activities, but these activities were carried out atFurthermore, in fiscal 2015, a scientific experience

individual departments and their effectiveness acrossprogram was added to the program called

the plant as a whole was limited. It was decided to“Manufacturing and the Environment”. Students madeimprove the attitudes of all employees based on thethe MgBox (one of Furukawa Battery Co., Ltd.’s latest

concept of “reducing industrial waste = improved quality

products) out of everyday milk cartons. This helped to= better financial results”, and to improve the facilities bystimulate their interest in science and gave them anintroducing cross-linked molten salt condensation

opportunity to think about environmental conservation.

equipment and other measures. Group companies

Since the program was launched, approximately 700

located within the premises were also asked to

students at a total of 14 schools have been taught overcooperate, and implementing an open innovation madea four-year period. However, the scale of the activities isa major contribution to reducing industrial waste.

still small, and the aim is to visit even more elementary

Furthermore, these activities were recognized by theschools in the future to give environmental education

City of Kitakyushu Environment Bureau, which presentedclasses.

Furukawa Electric Industrial Cable Co., Ltd with the“Award for Outstanding Business in the Field of
Recycling and Reduction” and accredited the company
as an “Outstanding Business in the Handling of Industrial
Waste”. Furukawa Electric Industrial Cable Co., Ltd will
work hard to live up to the award by continuing topromote activities, as well as pursuing horizontal
development of these activities at other plants.

Visiting an elementary school to give an environment class

Receiving a certificate as an accredited company

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201645

●●● Initiatives for Society

Activities in eachregion Activity topics
Furukawa Electric Group conducts
various activities in each region.

Living in harmony with
the natural environment● Participated in local environment
beautification campaign
・Furukawa Electric (Chiba Works, Copper Foil
Division, Hiratsuka Works, Mie Works)
・Furukawa Sangyo Kaisha

Nuturing future generations● Supported and cooperated on work experience forschoolchildren of all ages
・Furukawa Electric (Chiba Works, Nikko Works) ・The Furukawa Battery
・Furukawa Electric Power Systems

・Furukawa Logistics

・The Furukawa Battery   ・Riken Electric Wire・Okano Electric Wire  ・Furukawa Techno Material
・Furukawa Automotive Systems
・Furukawa Electric Industrial Cable
・KANZACC ・Furukawa Electric Ecotec

・Furukawa Logistics

・Shodensha

・Furukawa Nikko Power Generation

・Furukawa Magnet Wire ・Yokohama Drum Manufacturing

Factory tour by the local
elementary school(Chiba Works, Furukawa Electric,
Furukawa Logistics)

River cleanup activities by the “Yamato-shi Environment
Improvement Society” (Okano Electric Wire)● Imprementation of private sector training (note) for teachers
・Furukawa Electric (Head Office, Hiratsuka Works)(note) Sponsored by the Japan Institute for Social and Economic Attains

Promotion sports and culture● Participated in, sponsored, and provided a venue for
sporting events・Furukawa Electric (Nikko Works, Hiratsuka Works, Mie Works)
・The Furukawa Battery

・Foam Kasei● Hosted, participated in, and supported festivals
・Furukawa Electric (Chiba Works,
Nikko Works, Hiratsuka Works,
Mie Works)
・The Furukawa Battery
・Miharu Communications

Cleaning activities as Shinmoji Seaside Park
(Furukawa Logistics, Yokohama Drum
Manufacturing)● Conducted beautification activities
outside premises
・Furukawa Electric (Chiba Works, Nikko Works
Copper Foil Division, Hiratsuka Works,
Mie Works, Copper Tube Division）

・Okano Electric Wire・Furukawa Automotive Systems
・Furukawa Electric Industrial Cable
・Furukawa Electric Ecotec
・Furukawa Logistics ・Furukawa C&B
・NTEC ・Furukawa Magnet Wire・Furukawa Precision Engineering
・Furukawa Electric Power Systems
・NTEC
・Furukawa Nikko Power Generation
At Yawata Seaside Festival(Chiba Works, Furukawa Electric)

46

・Furukawa Magnet WireFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2016

Off-site cleanup activities(Furukawa Electric Ecotec)

Initiatives for Society ●●●Living side by side with local communities● Supporting and working with NPOs
and special-needs schools
・Furukawa Electric (Nikko Works, Copper
Foil Division)・Furukawa Nikko Power Generation● Participated in regional exhibition

Athletic festival of Imaichi special-needs school(Copper Foil Division, Furukawa Electric)・Furukawa Electric (Chiba Works)

Other activities● Supported the restoration of the Tohoku region
・Furukawa Electric (Chiba Works, Hiratsuka Works)● Donated and raised funds for charities

・Furukawa Sangyo Kaisha

・Furukawa Electric (Yokohama Works)
・The Furukawa Battery   ・KANZACC
・Miharu Communications ・Furukawa Nikko Power Generation

At a Fukushima regional produce sales event jointly hosted with VISCAS
Corporation (Chiba Works, Hiratsuka Works, Furukawa Electric)
Installing vending machines to collect for the Red Feather
Community Chest Movement(Yokohama Works, Furukawa Electric)● Donated blood・Furukawa Electric (Copper Foil Division, Yokohama
Works, Hiratsuka Works)
・The Furukawa Battery

・Furukawa Precision Engineering● Conducted factory tours for employees’ families
・Furukawa Electric (Chiba Works, Hiratsuka Works)

Volunteer activities at the“Millennium Hope Hills” in
the Ainokama Area of Miyagi
Prefecture(Furukawa Sangyo Kaisha)

Challenges and Future Policy
Alongside our Group’s basic social contribution policy, Furukawa Electric has given much consideration toprograms that take advantage of our uniqueness, on themes that are of deep concern to our employees.
As well as various ingenious community-based activities by our Group companies and Furukawa Electric’s
various works, research laboratories, and branches, in fiscal 2014 we implemented private sector training for
public school teachers. What’s more, in fiscal 2015, Furukawa Electric implemented an educational program inwhich we used our unique technology as an educational resource to give science classes at schools.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201647