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 Group by
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 our operations
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
MONOZUKURI Innovation 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
FY201634

Not achieved

FY2017

Targets

Results

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

 educe “failure costs” by 10%-Rfrom fiscal 2015

Partially achieved

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Achievement

Targets

Strengthening of fundamental
Quality Power educe “failure costs” by 10%- R
from fiscal 2016

Initiatives for Society

Efforts to Reduce Failure Costs

TOPICSThe 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 13 themes in fiscal 2016, with 20
events for executives held to promote activities.
At the end of the fiscal year, we also held a fact-finding
presentation event in Quality Strengthening Projects inorder to share examples of improvements within thewhole Group, including our affiliated companies.
As a result of theme activities for the “Quality
Strengthening Project”
as well as other theme
activities within businessdivisions, we were able
to achieve our targets
for reducing failure costs
in fiscal 2016.

A Space for Giving Birth to New Innovations

Since our establishment in 1884, Furukawa Electric has
produced a wide variety of innovations through continuous
technological reform, drawing on more than a century of expertisein the development and fabrication of advanced materials.
Our new “Fun Lab” has been set up for the further evolution
and acceleration of this background in innovation.
The logo starts with “F” for Furukawa and incorporates themeaning of creating innovation
by making the viewer imagine
fun future creation.
By creating open innovation
with guests who visit it(COMPREHENSION) throughmutual recognition of each other’s
strengths (COOPERATION) andsharing new senses of value
utilizing each other’s strengths( COLL ABOR ATION), we willcontinually create new
innovations to contribute to theachievement of a rich society.

URL → http://www.furukawa.co.jp/funlab/en/

Challenges and Future Policy

particularly necessary to further enhance design and

By deploying the procedures (concepts) of theme

development. Therefore, we will implement project

activities using “Quality Strengthening Project” measures

activities to improve process and competence for design

horizontally to other theme activities within businessand development, in addition to the past “Quality

divisions, we will be able to obtain even greater results.

Strengthening Project”.

Requests and demands from our customers havebecome extremely complex in recent times, and in order

We will move forward to achieve the next level of quality
through these two project activities.

to respond to them we have determined that it will be

Message from theGeneral Managers

Message from theGeneral Managers

Message from theGeneral Managers

To achieve “the next level of quality”, we will
strive to strengthen our design and development
processes even further.
Kazuhisa Kashihara
General Manager, Quality Promotion Department,
MONOZUKURI Innovation Division

In accordance with our basic policy on quality control, we
promote a continuous fact-based management cycle atevery stage from research and development to production,
sales, service, and administrative work, in every division,and at every level, thereby maintaining and improving
quality. To be able to create products that are attractive tocustomers, we make thorough improvement at every
process from product planning through to the point of sale.
Starting from fiscal 2017, we launched projects to improve
process and competence of design and development inaddition to the “Quality Strengthening Project” and willproceed with these two-pronged activities.
The “Quality Strengthening Project” activities will be
carried out with a focus on further expanding the results
which have been obtained up until fiscal 2016.
Project activities to improve process and competence ofdesign and development will have the objective ofimproving process for design and development in each
operational division, and improving the competence ofdesigners and developers.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201735

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
In order to forge sound relationships with businessexperiences during the suspended production thatpartners through fair transactions that comply with rules

resulted from snow damage at Our Nikko Works, weand regulations, Furukawa Electric Group provides

requested ongoing cooperation from certain businesstraining for employees on subcontracting transactions. In

partners on business continuity and stable supply

fiscal 2016, in addition to continuing with the courses weinitiatives.

have conducted to date, we sought to ensure thoroughawareness of the content of the act against delay inPayment of Subcontract Proceeds, Etc., toPromoting CSR in procurement activities
Based on our CSR Deployment Guideline for Business
Partners, we engage in procurement activities with “fullSubcontractors.

Partners Meeting and Partners Evaluation Scheme

legal compliance and fair trading practices” and“consideration for human rights, safety and the

Furukawa Electric

environment”. We are also continually providing

seeks to deepen

encouragement at partners meeting by explaining theawareness among ourstate of our efforts to our trade partners, asking for theirbusiness partners

cooperation with our activities, and so on.

through regularly held
Partners Meeting, whereSupply chain BCM (Business Continuity Management)

we explain the state of

Furukawa Electric conducts regular questionnaire

the Company, our procurement policy and individual

surveys on its main partners about their BCM measures.

company management strategies. For fiscal 2016, thisIn fiscal 2016, we held questionnaire surveys for main

meeting was held in June and was attended by 57 main

partners and placed the results we received from ourbusiness partners.

business partners onto a database. In this way, we have

We also evaluate main business partners on the basisof quality, technology, price, delivery system, degree ofsocial contribution and financial condition, and then holdmeetings to provide feedback on our findings. In addition,36

based on the results of the assessment and our own

become able to quickly identify which partners are mostly
likely to be affected during a natural disaster.

Conflict Minerals (note)

we discuss the results of our evaluations with them toRegarding the handling of conflict minerals, ourmore closely align our awareness of procurement

approach to responsible mineral procurement has been

activities.

to comply with the code of conduct of the EICC

In fiscal 2016, we evaluated some 196 business(Electronics Industry Citizenship Coalition), including

partners and provided feedback to them. Furthermore,setting a Group policy and informing other GroupFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Society

companies and partners.

Challenges and Future Policy

In fiscal 2016, in addition to carrying out ongoingsurvey into the usage of conflict metals in mainstay

We want to fully grasp the state of our CSR activities

products at Furukawa Electric and our Group companies,

along the value chain by regularly asking our partners to

we have actively promoted procurement from smelters

complete a questionnaire on their understanding of ourthat have received accreditation under the EICC’s

CSR Deployment Guideline for Business Partners.
We w i l l a l s o s e e k t o d e e p e n B C M b y g i v i n g

conflict-Free Smelter Program.
G o i n g f o r w a rd, i n a d d i t i o n t o re q u e s t i n g t h eencouragement to partners based on the results of ourcooperation of Group companies and our business

BCM questionnaire and manufacturing site survey, withpartners in the responsible sourcing of minerals, we will

the aim of improving crisis response levels along thework with the Japan Electronics and Information

entire value chain. Internally, during group exercise held

Industries Association (JEITA), an industry organization,at the Procurement Department, we have held training

on initiatives targeting the responsible sourcing ofand seminars on the handling of BCM in order to raiseminerals.

awareness among members of the department.

(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.

Targets and Results (Procurement)

Achieved

Partially achieved

FY2016
Targets

Strengthen strategic relationships withpartners
 ngoing implementation of the partner-O
assessment system and utilization of
feedback discussions-P romote awareness of CSR Deployment
Guidelines among partners-E xamination and implementation of
measures to strengthen the value chain byutilizing BCM questionnaire surveys and site
surveys results-C arry out conflict minerals survey (survey
for the purposes of updating data)

Message from theGeneral Managers

Not achieved

FY2017
Results

Achievement

 onducted partner evaluations-Cof about 196 main partnercompanies held partners meeting- Introduce our CSR Deployment
Guideline by procurement system
online eviewed and increased the-Rnumber of procurement points(and sometimes recommended
inventory) for principle products- A conflict materials surveys (datarenewal surveys) was done

Targets

Strengthen strategic
relationships with partners
 ontinue partner evaluation-Csystem ontinue to inform partners about-C
CSR Implementation Deployment
Guidelines-C ommunication with partners
with a view to strengthening theValue chain based on the resultsof BCM questionnaire surveys-C onflict mineral survey (data
update survey)

Message from theGeneral Managers

Message from theGeneral Managers

We will strive to achieve mutual understanding
with our business partners and take further steps
to strengthen our supply chain.
Kazuhiro Takamatsu
General Manager, Procurement Department, Finance& Procurement Division
Ever since its foundation, Furukawa Electric has stayed
in business by partners with social infrastructure andcontributing to society as a partner of products. However,
our success is not just the result of hard works at ourcompany. It is also thanks to the steady delivery by ourpartners of the raw materials we use to create products.
In the future, our business environment is likely tochange even more rapidly. Under these circumstances, wewill need to strengthen our value chains further in order tocontinue contributing to society. We intend to use apartners meeting and partners assessments to improvethe mutual understanding we have with our partners, andto continue contributing to society through measures suchas the promotion of CSR activities and strengthening ofBCM.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201737

Relations with Shareholders
Information Disclosure Policy and IR Framework
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 conducted by

Automotive components plant

the Investor & Public Relations Department and overseenby the director in charge of IR, who is General Managerof the Finance & Procurement Division.

Returning Profits to Shareholders
Furukawa Electric aims for management emphasizing

Relations with Institutional Investors and Securities Analysts

capital efficiency and has made the basic policy of its

In addition to holding management briefings (covering

capitalization strategy to balance strategic investment forinterim and year-end results and mid-term plans whengrowth, the cultivation of the next generation of new

announced) for institutional investors and securities analysts,

businesses, the improvement of the financial structure

we actively encourage communication all year round.

and returns to shareholders.
Under this basic policy, in the “Furukawa G Plan 2020,”
the new medium-term management plan that started
from fiscal year 2016, we will apply management
resources prioritizing facility investment and R&D for profit
expansion in focus business areas (infrastructure /automobile markets) and the creation of new businesses,
strengthen the earning capacity of our group and improve
its financial structure, all of which will support theBriefing for institutional investors

Relations with Individual Investors
In September 2016, we held our 9th plant tour forindividual investors. Visitors were selected by lottery fromamong those who responded to an open invitation, with
50 people invited to attend out of the 127 who responded.
During the tour, we offered participants a number ofopportunities to get a feel for Furukawa Electric. We
introduced our production processes for optical fiber
cables and automotive components in Mie Works.

sustained growth of our group. With regard to returns toshareholders, we also positions the continuation of stabledividends as one of the most important issues ofmanagement.
We implemented an increase for the term-end dividendof the term ended March 2017, to increase the return ofprofits to shareholders as mentioned above inconsideration of factors such as the results for the term.
The term-end dividend was provided at a price of 55 yen
per share. We have carried out a reverse stock split at aratio of 1 share for every 10 ordinary shares with aneffective date of October 1, 2016, and this term-end
dividend based on conversion after the reverse stock split
has increased by 15 yen compared to the previous term.
With regard to dividends for the term ending March
2018, we are planning a dividend of 60 yen per share, in
overall consideration of an anticipated results forecast
higher than the previous term, future businessdevelopment, and the return of profits to shareholders.

Optical fiber plant

38

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Society

Stock Information and Dividends
株式・配当情報
General stock information (as of March31, 2017)

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, 2017)

5801

Domestic companies, others

Tokyo Stock Exchange, First Section
Common Stock

Treasury stock

6.86％
48,851,021 shares

250,000,000 shares

0.07％
48,062 shares

Individuals,
othersCommon Stock
70,666,917 shares
100 shares *2-1 Yaesu 1-chome, Chuo-ku, Tokyo, Japan
Mizuho Trust & Banking Co., Ltd.
From April 1 to March 31
June each year

Total number ofshares issued andoutstanding

21.70％
15,333,730 shares

70,666,917

41.62％
29,413,607 shares

Securities
companies

Foreign corporations
27.57％
19,480,698 shares*W e changed 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.

Financial
Institutions

2.18％
1,539,799 shares

Cash dividends per common share (including forecast)Fiscal year
Interim dividend (Yen)
Year-end dividend (Yen)
Total dividend (Yen)

2014/30.0
3.0
3.0

2015/30.0
3.0
3.0

2016/30.0
4.0
4.0

2017/30.0
55 (note)
44 (note)

2018/30.0
60 (note)
60 (note)(note) W
 e have carried out a reverse stock split at a ratio of 1 share for every 10 ordinary shares with an effective date of October 1, 2016. The amounts if
the reverse stock split is not conducted will be, respectively: 55 yen → 5.5 yen, and 60 yen → 6.0 yen.

(as of March31, 2017)

Major top 10 shareholders of the Company and the Company’s capital contributions to such shareholders
Name of major shareholders
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan,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)
BBH BOSTON CUSTODIAN FOR JAPAN VALUE EQUITY CONCENTRATED
FUND A SERIES OF 620135
Asahi Mutual Life Insurance Co.
FURUKAWA CO., LTD.
Japan Trustee Services Bank, Ltd. (Trust Account 5)
GOVERNMENT OF NORWAY
Fuji Electric Co., Ltd.

Number of shares

Shareholding
ratio

5,566,800
4,959,900

7.88%
7.02%

2,413,500

3.42%

2,238,500

3.17%

1,465,500

2.08%

1,365,050
1,329,045
1,289,900
1,228,800
1,100,000

1.93%
1.88%
1.83%
1.74%
1.56%

(note) 1. Shareholding ratio is calculated with the number which deducted 48,062 shares of the Company’s treasury stock.
2. Mizuho Bank, Ltd. holds 173 shares separate from the 2,413,500 shares indicated above which have been set by Mizuho as a retirement benefits trust.
3. In addition to the JPY 1,365,050 shares mentioned above, Asahi Mutual Life Insurance Co. also has a further 1,050,000 shares in a retirement benefits trust.
4. In addition to the 1,329,045 shares mentioned above, FURUKAWA CO., LTD also has a further 1,091,900 shares in a retirement benefits trust.

Message from theGeneral Managers

Message from the
Message from theManagers
WeGeneral
will focus
on releasing informationGeneraland Managers
providing explanations of our diverse business
content for their understanding
Mami Masuda
General Manager, Investor & Public
Relations Department, Finance & Procurement Division

Furukawa Electric’s business began with copper smelting
and the manufacture of electric wires. The numerous
products that we manufacture based on our materials
technology support the lives of people around the world ina wide variety of fields, including telecommunications,electric power infrastructure and automobile.
In fiscal 2016, our company established new supervisorydivisions which unify multiple businesses, with the goal ofstrengthening coordination between strongly-connectedbusinesses and consolidating common functions. Under thisnew system, we have reorganized our business segments
into four divisions: “Infrastructure”, “Electronics & Automotive
Systems”, “Functional Products”, and “Service andDevelopments, etc.” Based on these business segments, wewill focus on releasing information and providing explanationsof our diverse business content for their understanding by
our shareholders and investors, and we hope to become acompany that can receive their trust for many years to come.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201739

Relations with Employees
Personnel Management
Personnel Management Policy
Furukawa Electric Group’s basic approach to humanresources management is to utilize global and diverse
human resources in order to become a corporate groupstrengthening our cultivation of global human resources.
(note 1) This is our vision for human resources at Furukawa Electric Group.

Human Resources Development
Enhancement of Education Programthat is creative and energetic, and to embody the GroupWe are training human resources who have richPhilosophy so that we can continue to produce human

humanity and strong challenge spirit, for the sake of ourresources capable of contributing to our competitiveness.

group development. Our aim is to develop “sensitive

Please refer to page 26 for “Furukawa Electric Group

personnel who can think and act on their own initiative”

Corporate Philosophy”.

as we maximize our organizational strength and spread

Challenges and Future Policy

our Group management thinking.
The state of our leaders affects corporate culture andIn the 2020 Mid-term Management Plan, we set areflects in our business results, which is why we give

mission of pursuing diversity and autonomy in order totraining at each level to develop leadership, and constructcontinue growing on global markets, improving our ability

relationships between people by “dialogue” among all ourto respond to changes in the business environment, andemployees. We work hard to cultivate an interest in

realizing greater creativity and practical capabilities in ourpeople and a sense of respect for others.

“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 in“bottom-up measures for reforming our organizational

2006 in order to develop personnel who will take on theculture and human resources”.

role of management in the future. Since fiscal 2013 thisSpecifically, we will enact the Group HR Vision (note 1),

has been reformed to Global Mindset Program (GMP), withwhich describes our standard value judgments for

its extra emphasis on global human resource education.

formulating personnel strategies and measures at group

We have also operated a Global Development Program

companies, increase the links between personnel(GDP) for overseas local employees since 2010 with thesystems for hiring, job placement, assessment andaim of strengthening links within the Group, the curriculum

remuneration, and implement individual measures frombeing partly shared with the GMP. Furthermore, in fiscal

the perspective of “developing skills” with a focus on
Global Human Resources Training System
Main measures contributing to the Group’s global management
Top management reinforcement measures

3 Acceleration of efforts in diversity management(measures to promote women’s careers)
4R ealization of sustainable growth by “work style reform”

40

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

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

2D evelopment of the training curriculum, as well as
promotion of two-way human resources exchanges
through the overseas dispatch of junior employees, etc.

GBL

Sectionmanagers

Personnel management training

Corporate culture reform and personnel bottom-up measures
1E
 nactment of the Group HR Vision, establishment anddissemination of FM-Career Design (new deployment
criteria), and promotion of support for career development

Global Business Leader

Training just prior to overseas assignment

2D emonstration of leadership and activation of
behavior change by action assessment

Generalmanagers

Expatriates
Training in basic management knowledge

1R ealizing succession plans and strategic personnel
deployment in a way that makes use of humanresources databases

Training global human resources

Teamwork
improvement
workshops atoverseas sites

Initiatives for Society

2014 we launched the Global Challenge Program (GCP),
which dispatches young employees to foreign countries.
We are working to align these various programs to develop
human resources who can play a dynamic role on the

Using Diverse Human Resources
One of our Group’s management philosophy is to“nurture human resources at every level, so that we can

global stage.

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, more than 2,500 workers have been trained. The

become a more diverse and creative organization”. It isessential for the progress of our Group’s global
management to create a corporate culture in which morediverse personnel can succeed.
In April 2014, we set up a Diversity Promotion Section

training has consisted of foreman training, mid-levelto accelerate the creation of a work environment thatworker training, and basic program, with the aim ofgives a greater active role to more diverse personnel.

cultivating “GENBA-RYOKU”, the ability to think and act
for oneself, and boosting the monozukuri capability of theDiversity & Inclusion Activities
In September 2014, Furukawa Electric launched our

workplace.

activities, “Furukawa ‘V’ Challenge!!”, to promotewomen’s careers . We have set out the following targets
and promoted networking among female employees andwomen’s career-building, and we have adopted acomprehensive approach to improve the mindset of theUpper left: 8th Training Session for
Mid-level Workers - Hiratsuka Area
Participants
Upper right: Monozukuri staff undergoing
GENBA-RYOKU group work training
Left: Monozukuri staff undergoing
GENBA-RYOKU group work presentation

organization as a whole.
In April 2016, we acquired Level Three (the highest
level) of the “L-Mark”, which is an accreditation foroutstanding companies in the implementation of initiatives
related to the promotion of women’s careers. In the same
year, we held e-learning courses

In fiscal 2013, we launched GENBA-RYOKU (on-site

for all managers to enhance theircapabilities) training for Monozukuri staff (production

awareness of diversity anddivision employees providing on-site support). More thaninclusion, and created pamphlets

20 group companies took part in training in fiscal 2014,

intended for female students, towe launched a special program for all employees to takestrengthen our hiring activities.

part in at the base factories of several group companies.

[Objectives related to support the success of women

We will promote a manufacturing workplace culture andin the workplace]staff culture that encourages the common language of(1) We aim to double the number of females in managerial“strengthening our GENBA-RYOKU”. What’s more, weposts by 2018.

will strengthen our “Monozukuri capabilities” by working(2) W e aim to double the proportion of females hired by 2018.

together as a united Furukawa Electric Group both inNote) A summary of our company’s initiatives is available on the
Ministry of Health, Labour and Welfare’s “Comprehensive Site
for Supporting Women’s Activity and Work-Life Balance”(general business operator action plan announcement site).
http://www.positive-ryouritsu.jp/positivedb/detail?id=529

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

600
500

Furukawa Electric

88

400

business, Furukawa Electric Group has come together to
189

300

423

100
0

24
76

42
76

292

Diversity in Hiring
In order to respond to the global development of our

183

43

200

Group companies

344

265

human resources. In addition to information exchanges to

159
156

implement a variety of initiatives with the aim of securing

237

215

2009 2010 2011 2012 2013 2014 2015 2016 (FY)share know-how on hiring within the Group, we holdFurukawa Electric Group Forum held in Tokyo and Nagoya,at which we conduct briefings in conjunction with GroupFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201741

affiliates, and work proactively demonstrate the appeal of
Furukawa Electric Group to students.
Recruitment figures by gender (Number of employees)
MaleFemaleSpecialized
Total
staff
Foreignnationals
Male
Professional
Femalestaff
Total

FY2013 FY2014 FY2015 FY2016 FY2017
26
21
28
45
61
6
5
8
15
31
32
26
36
60
92
0

1

0

0

1

0
0
0

0
0
0

0
0
0

0
0
0

15
0
15

Encouraging Employment of Disabled People
Furukawa Electric has established special subsidiary
Furukawa New Leaf in fiscal 2004 for the purpose ofInternship training

contributing to the fostering of Japanese technicians of the
future. We have already taken on more than 200 students
across our various workplaces. In recent years, we havealso actively sought to accept students from overseas
universities in addition to Japanese universities.

Work style reform

improving our employment rate of disabled people. As of

Furukawa Electric established a dedicated organization

March 31st 2017, Furukawa New Leaf employs 40

in May 2015 and launched activities to promote

people who are intellectually challenged. As of March“Reforming working styles” and “Reforming our

15th 2017, Furukawa Electric has an overall disabledorganizational culture” with the aim of achieving both

employment rate of 2.24%.

sustained growth for the company and lifestyle (life)

Furukawa New Leaf is doing its bushiness at Hiratsuka

satisfaction for each individual working at the company. In

Works, Chiba Works and Mie Works, to further increasefiscal 2016, in addition to holding more efficient meetings

our disabled employment rate.

and simplifying meeting materials, we introduced a“telework system” after a trial operation period. In fiscal
2017, we will advance these activities and further raise theeffectiveness of each initiative.

Improving the Working Environment throughLabor-Management Opinion Exchanges
Furukawa New Leaf employees at work

Furukawa Electric maintains a basic position that both

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

1.5

1.94％

1.94％

2.29％

2.34％

We hold our Central Management Briefings twice

2.24％

annually for public exchanges of opinion between laborand management. We have conducted such meetingsfor 65 years from fiscal 1952. As of May 2017 we had

1.0

held these briefings 129 times. Representatives from0.5

labor and management exchange frank opinions and

0.0
2012

2013

2014

2015

2016

(FY)

Internships

42

sincere discussions, and therefore we focus on issue
resolution and deepening mutual understanding.

2.5
2.0

labor and management should endeavor to engage inshare information about a broad spectrum of items atthese briefings, such as the business environment,
management, and topical matters.
We also have in place various committees such as theEver since the Japanese government introduced a

Personnel System Exploratory Committee and thesystem of internships in 1997 as part of an industry-

Committee for Studying Shorter Hours that are designed

academia-government collaboration, in our role as ato improve the working environment, which management

manufacturer Furukawa Electric has taken on numerous

and labor discuss on a daily basis. These discussions

science and engineering interns with the aim oflead to improvements in various systems and strengthen

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Society

monitoring functions, such as compliance response andthe implementation status of other CSR activities.
CSR

Employee Data Book

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

Please see the URL below for Employee Data Book.

Partially achieved

Targets and Results (Personnel Development and Working Environment)

Achieved

FY2016
Targets

FY2017
Results

Achievement

Strengthening of global humanresource training-C onduct GDP- Implement GCP- In GDP,14 participation of the countries
29 people from August 22 to 27- I n GCP,assigned 2 people to
OneFurukawa course(belonging toIntellectual Property Dep.,Broad Band
Sec.(changed to Material Dep.))

Reinforcement of Monozukuri
capability
 uilding an educational system to-Bstrengthen Monozukuri capabilities- Implementation of GENBARYOKU
strengthening activities for affiliatedcompanies (Japan and overseas) epartment in charge started discussion-Dof building an educational system tostrengthen Monozukuri capabilities
 ENBA-RYOKU training,basic program-G
for all employees in two affiliatedcompanies was implemented

Support for diverse ways ofworking, and work-life balance-R eduction in number of employees
taking an extremely low number ofdays of annual paid leave (ongoing);
expansion in scope of the workfrom-home system- The rate of employees who got the
number of days of annual paid leave isunder 5 days was 1.4%
- The work-from-home system for purposes
other than child care or nursing has been
introduced

Message from theGeneral Managers

Not achieved

Targets- Training menu is to be revised forthe penetration of “OneFurukawa
Mind” and the awareness of “CoreValu”-C ontinuous implementation of
GCP-B uilding an educational system tostrengthen Monozukuri capabilitie- Implementation of GENBARYOKU
strengthening activities for affiliatedcompanies (Japan and overseas)(ongoing)
Support for diverse ways ofworking, and work-life balance-P romotion of birth and child careparticipation of father,awarenessof our system, support for infertility
treatment hour

Message from theGeneral Managers

Message from theGeneral Managers

We will accelerate our measures to build
environments and cultures which allow diverse
personnel to be active.
Takashi Fukuda
General Manager, HR & Administration Department,
Strategy Division

In order for the Furukawa Electric Group to achieve
continuous growth in the global market, it will be extremely
important to pursue diversity and autonomy, raise ouradaptability to business environments, and develop people
and organizations with strong innovation and capabilities totake action. To accomplish these goals, it is essential that all
employees with diverse views, abilities, and backgrounds
and regardless of characteristics such as age, gender or
nationality behave with integrity, aim for innovation, beaware of addressing reality, act with autonomy and speed,
and always be conscious of collaboration.
We are engaging even more actively in diversity
management, such as by establishing the special subsidiary
Furukawa New Leaf in fiscal 2004 to improve our
employment rate of disabled people, and creating a
Diversity Promotion Section in fiscal 2014. To carry out
human resources development from a global perspective,

we introduced “Global Business Leader (GBL) Training”, the“Global Mindset Program (GMP)”, and the “Global Challenge
Program (GCP)”, working to “develop human resources able
to clear new paths and carry out tasks to completion”, aswell as “building collaborative environments”.
Meanwhile, to exemplify our sense of autonomy, we haveintroduced and are operating FM Career Design, a personnel
system that stimulates the ability and desire to facechallenges in individuals and the generation of innovativeideas in organizations. This will allow us to make careerformation and human resources more fluid through planned
allocation.
We will continue to actively take the above and othermeasures in the future in order to accelerate the creationof an environment and corporate culture where morediverse human resources play an active role.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201743

Occupational Health and Safety
Basic approach to occupational health and safety management
In addition to basic legal compliance, Furukawa Electric Group prioritizes initiatives that promote “becoming a safety
conscious person” and “realizing fundamental safety”. Our basic approach is to aim for zero accidents and zero illness.

Basic policy on health and safety management•E ndeavor to eradicate accidents by inspections and management in accordance with the industrial Safety and Health Act.
•P
 romote the realization of “fundamental safety” with a medium-term goal of achieving Stage lII or higher inseparating pedestrians and vehicles and separating people and equipment.
 evelop “safety conscious person” through communications, the 5S and education (experience and practice).
•D• Improve Safety and health management systems with a mediurn-term goal of achieving Stage IV or higher.
• Promote mental and physical health improvement by the group’s health management activities.

Promotion System
Furukawa Electric Group has

Promotion Framework

established the Furukawa Electric Group

President

Occupational Health & Safety

Furukawa Electric Group Occupational
Health and Safety Committee

Committee (on which the President
serves as committee chairman) as theCommittee chair : President
Committee members : Management
Organizer : General Manager,
Safety and Environment
Promotion Department
General Manager,
HR Department

highest 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

Representative Safety and Health Meeting
Chair :

General Manager of
MONOZUKURI Innovation Division

Members:
Division general managers
Divisional Representative Safety and HealthWorks General Managers
Safety and Environment Promotion Department
HR Department

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 safety

Group’s safety and health activities and awarding the best

officers make site inspections atwith commendations. In

Furukawa Electric Co., Ltd. andfiscal 2016, fifteen teams

group companies whenever anwere selected from theaccident occurs and in

SBUs (including five teams

accordance with performancefrom group companies) toin the previous fiscal year. They

give presentations andconfirm how appropriate the safety measures are, andFPT (Thailand) giving apresentation

receive awards from theSite inspections by officers
at OFS (the United States)

check the extent to which these measures have becomepresident.

firmly established. In addition, they exchange opinionswith a view to achieving fundamental safety, and work
hard to prevent any recurrences. They also conduct visits

Targets and Results (Accidents)

Achieved

Partially achieved

FY201644

Not achieved
FY2017

Targets

Results

One or less “accidents withworking loss days”

Two “accidents withworking loss days”

Achievement

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Targets

Zero “accidents withworking loss days”

to domestic and overseas
group companies, andexchanged opinions with 17
companies in fiscal 2016.

Initiatives for Society

Work Accident Occurrence Status

Strengthening Smoking Measures

In terms of its performance in fiscal 2016, Furukawa

In fiscal 2003, we commenced

Electric recorded two “accidents with working loss days”,

measures to counter smoking in earnest,

and failed to meet its target of “one or less accidents withintroducing programs to prevent

working loss days”. Frequency rate of accidents resultinge x p o sure t o p a s si v e smok e a ndin time off work (note 1) at Furukawa Electric Co., Ltd.

encourage quitting smoking. As a result

stayed almost unchanged at 0.28, whereas the rate forof such activities, the percentage ofthe domestic group as a whole (note 2) rose to 0.72.
Frequency rate of accidents resulting in time off work
（％）

2.0

All industries (note 2)
Whole Group in Japan

Frequency rate (note 1)

1.59

1.58

Whole manufacturing industry (note 3)
Furukawa Electric

1.66

1.61

1.63

1.06

1.06

1.15

1.0

0.94

0.53

0.71

0.77

0.51

0.37

0.40

0.0

0.28

0.29

0.28

2012

2013

2014

2015

2016

fallen by approximately 20 percentage

points over 10 years. We aim to switch to a smoking ban
during working hours in fiscal 2017 and to an entirely“Celebrate the 2020 Tokyo Olympic Games, after having
achieved Entirely Non-Smoking ” and have continued toadopt a multifaceted approach with the following three

0.72

0.5

smokers among male employees has

smoke-free workplace by fiscal 2020 ,listing the slogan

1.5

1.00

Non-smoking
postermain approaches: sharing information, supporting efforts
to quit smoking and creating a smoke-free environment.
(FY)(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2016 covered full-time employees andtemporary staff at Furukawa Electric and 36 Group companies in Japan.
See page 61 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

Measures to Prevent Falling Accidents
Since the frequency of accidents which involve falls
increases with age, the advancing age of personnel even

Meanwhile, the 2016 accident frequency rate for theat Furukawa Electric means there is a growing risk of fallingwhole Group including overseas Group companies was

accidents to occur (including falls which occur while

1.28. This included accidents both resulting in and notwalking during travel to work). Therefore, from fiscal 2016

resulting in time off work.

we have introduced educational programs and physical

Healthcare for Employees Working Long Hours

been holding physical capability checks for our employees

In accordance with the Guidelines issued by the Labor

50 years of age and older, which was extended to evenStandards Bureau entitled “Measures to be Taken by
Employers to Prevent Health Impairment Due to Overwork”,

exercises (muscle training) to prevent falls. We have also

those 40 years of age and older from fiscal 2017.

hours by implementing strict limitations on working hours

Certification as a 2017 Certified Health andProductivity Management Organization (White 500)

based on the results of health checkups and by arranging

Furukawa Electric has been

we strive to manage the health of employees who work longconsultations for such workers with industrial physicians.

Mental Health Education

recognized and provided with acertificate as a 2017 Certified Healthand Productivity Management

We began conducting mental health measures in fiscal 2002, In

Organization (White 500), indicating

the past, stress control training, workplace mental health trainingthat we are a company practicing

with a focus on Work Engagement, and Pleasant Workplace

White 500 certificate outstanding health and productivity

Discussion Sessions aimed at improving the workplace

management under the Ministry of Economy, Trade andenvironment have been implemented across the company.

Industry’s Certified Health and Productivity Management

In fiscal 2014 and fiscal 2015, we promoted self-careOrganization Recognition Program. This can be seen as

training and line care training for all employees in theira high commendation of our activities for “Building aearly 40s and all middle-ranking managers in order to

Healthy Mind and Body”, which have been implemented

improve their ability to respond to various changes. In

steadily based on our Basic Health Management Policy

fiscal 2016 or later, in addition to continuing to implement

specified each year. This certification will serve as eventhese trainings, we will introduce a stress check system

greater encouragement to once again promote our healthin accordance with legal revisions.

and productivity management practices.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201745

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.

Support for Areas Struck by the Kumamoto
Earthquakes

Recovery Support by the “Fukushima Support
Company Network”

Immediately after the Kumamoto Earthquakes

Furukawa Electric joined the “Fukushima Support

occurred, Furukawa Electric Group delivered ourCompany Network”, a membership-based organization

products to afflicted municipalities at no charge, for use

formed by companies that are willing to promote

at evacuation shelters. We also donated support funds

purchases of products from Fukushima Prefecture as wellthrough the Central Community Chest of Japan, to be

as use of tourist facilities in the prefecture in order toutilized as activity funds for groups and volunteer

dispel harmful rumors about Fukushima due to theorganizations engaged in activities to support disaster

nuclear accident. In fiscal 2016, we held a highly-

areas.

successful sales event of special goods, fruits, andFurthermore, we collected individual contributions fromJapanese sake produced in Fukushima in the form of aour Group company employees for our two Group

company marché, at the Head Office, Chiba Works, andcompanies affected by the disaster, and provided them

Hiratsuka Works.

with our sincere wishes for a quick recovery.

Portable emergency power supply MgBOX, which can beused to generate electricity in disaster situations simply byfilling it with water or other fluids, and can be disposed ofafter use by standard garbage disposal procedures.
(Provided by The Furukawa Battery CO., LTD.)

Scenes from company marché(upper: Head Office, lower: Hiratsuka Works)

46

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

Initiatives for Society

CSR Awards
Eighth CSR Awards
Furukawa Electric established the CSR Awards to recognize the social contribution or environmental preservation effortsof our subsidiaries that notably exceed their regular business. CSR Award-winning companies work on a daily basis tocontinue contributing to society through these activities.

Social Contribution AwardFURUKAWA MEXICO, S. A. DE C. V.

Environmental Preservation AwardFURUKAWA Research Inc.

Our overseas Group company FURUKAWA MEXICO,In June 2015, Furukawa Research Inc. launched activities

S.A. DE C.V. (abbrev. FURMEX), under the jurisdiction ofas part of its initiatives for biodiversity conservation to

our Automotive Products Div., has since its establishment

cultivate the flower Pulsatilla cernua, which has beenplaced special emphasis on providing educational

designated on the Red List of the Ministry of Environment

support to regional societies. Mexico is faced with serious

as a Vulnerable (VN) (a category of species for which theissues such as drug problems, domestic violence, anddanger of extinction is becoming more serious).

poverty, and so this company is engaged in various

After seedlings were transplanted to a corner ofactivities in coordination with local Mexicali City and other

Furukawa Electric’s Yokohama Works, all employees

institutions, for the primary goal of easing these problems

participated in daily team activities, which included

by any amount possible. Examples of its activities include

watering the plants, pulling weeds, catching and removing

factory tours and workplace experience activities offeredinsects, and keeping daily observation journals. In spring of

to local high school and university students. Experimental

2017, roughly 40 Pulsatilla cernua plants had been

facilities in the company are also opened to local

cultivated, with 150 flowers in bloom. The company is also

universities and made available for their use. This spring,planning for further cultivation by collecting and planting

the company acquired measuring equipment including

seeds as environmental activities for the entire theelectron microscopes and elemental analysis devices, as

Yokohama Works, as well as giving seeds to applicants

well as CNC machining equipment, and hopes to be able

who request them. In this third year, the company intends

to contribute even more to practical training for university

to expand beyond the Yokohama Works itself and proceed

students and graduate students. From here on, it willwith activities to provide returns to the regional society.

proceed with activities in close coordination with local

Since 2016, Pulsatilla cernua cultivation activities havecities and states, to make valuable contributions toalso been started at the Hiratsuka Works and the Chiba

regional societies.

Works in addition to the Yokohama Works, as activities
undertaken by the Furukawa Electric Group.

Factory tour for local high school students

Ceremony to commemorate the opening of researchfacilities, with university-related staff invited

Cultivated Pulsatilla cernua
flowers

Planting Pulsatilla cernua seeds
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201747

Activities
in each region
Activity topics

Living in harmony with
the natural environment▶ Participated in local environment
beautification campaign

Furukawa Electric Group conducts
various activities in each region.

・Furukawa Electric (Chiba Works, Nikko Works, Copper Foil
Division, Hiratsuka Works, Mie Works, Copper Tube Division)

Nuturing future generations▶ Supported and cooperated on work
experience for schoolchildren of all ages
・Furukawa Electric (Chiba Works, Nikko Works)
・Furukawa Electric Power Systems

・Okano Electric Wire ・TOTOKU Electric・Furukawa Automotive Systems ・Furukawa Sangyo Kaisha
・Furukawa Precision Engineering ・Furukawa Techno Material
・Furukawa Electric Industrial Cable ・The Furukawa Battery

・Furukawa Logistics

・Furukawa Magnet Wire
・Riken Electric Wire

・The Furukawa Battery

・Furukawa Nikko
Power Generation

・Furukawa Logistics

Factory tour by Yonezawa
Technical High school(Furukawa Electric Power
Systems)

Mission uchimizu inAmagasaki 2016
(Copper Tube Division,
Furukawa Electric)

Special classes
at Ohara primaryschool in Taketomi
Town(Furukawa Electric)

Promotion sports
and culture▶ Participated in, sponsored, and provided
a venue for sporting events
・Furukawa Electric (Nikko Works, Hiratsuka Works, 		
Mie Works, Copper Tube Division)・Furukawa Sangyo Kaisha ・Furukawa Electric Power Systems
・The Furukawa Battery

・Furukawa Nikko Power Generation

Shonan Coast Cleanup Campaign run by
the Labor Union Young(Hiratsuka Works, Furukawa Electric)

At the 3rd "Forest of Furukawa" tree planting
activity Tochigi Furukawa Association (note)(Furukawa Precision Engineering)(note) 
Environmental conservation activities of Furukawa Group,
Tochigi Prefecture
From Furukawa Electric Group・Furukawa Electric (Nikko Works, Copper Foil Division)
・Okumura Metals ・Furukawa Precision Engineering
・The Furukawa Battery
・Furukawa Nikko Power Generation▶ Hosted, participated in, and supported festivals
・Furukawa Electric(Nikko Works, Hiratsuka Works, Mie Works)
・NTEC ・Furukawa Precision Engineering
・Furukawa Electric Power Systems

Iwaki Sunshine
Marathon(The Furukawa
Battery48

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2017

・The Furukawa Battery

・Furukawa Nikko Power Generation
・Furukawa Magnet Wire ・Miharu Communications

Initiatives for Society▶ Conducted beautification activities outside
premises・Furukawa Electric (Chiba Works, Nikko Works
Copper Foil Division, Yokohama Works, Hiratsuka Works,
Mie Works, Copper Tube Division）

・NTEC ・Okano Electric Wire・Furukawa Automotive Systems ・Furukawa C&B
・Furukawa Electric Ecotec ・Furukawa Electric Industrial Cable
・Furukawa Electric Power Systems ・The Furukawa Battery
・Furukawa Logistics ・Furukawa Magnet Wire

Living side by sidewith local communities▶ Supporting and working with NPOs
and special-needs schools
・Furukawa Electric(Nikko Works, Copper Foil Division)▶ Held a fishing event
・Furukawa Nikko Power Generation

Other activities▶ Donation to the Kumamoto earthquake
・Furukawa Electric (Yokohama Works) ・NTEC
・Furukawa Electric Power Systems

・Furukawa Nikko Power Generation▶ Donated and raised funds for charities

Trout fishing event for local residents,
held at a retention basin(Furukawa Nikko Power Generation)

・Furukawa Electric (Yokohama Works)
・The Furukawa Battery ・Miharu Communications
・Furukawa Nikko Power Generation▶ Donated blood・Furukawa Electric (Chiba Works, Nikko Works, Copper▶ Conducted factory tours for employees’ families
・Furukawa Electric(Hiratsuka Works, Copper Tube Division)

Foil Division, Yokohama Works, Hiratsuka Works)
・Furukawa Precision Engineering
・The Furukawa Battery ・Furukawa Magnet Wire

Factory tour for Employees’ families(Hiratsuka Works, Furukawa Electric)▶ Supported the restoration of the Tohoku region
・Furukawa Electric (Chiba Works, Hiratsuka Works)
Blood donation(Chiba Works, Furukawa Electric)・Furukawa Sangyo Kaisha

Challenges and Future Policy
In addition to community-based activities applying the ingenuity of Furukawa Electric’s works, branch offices, andGroup companies, we also held private sector training for public school teachers and other events. From here on as
well, we will continue investigating programs and other measures which can apply our unique company
characteristics in accordance with the Furukawa Electric Group Basic Policy on Social Contribution Activities.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201749