Labor Practices
Hitachi has a human resource strategy that emphasizes the concept of “decent work” (that is, work that ishumane and fulfilling). We make a thoroughgoing and meticulous effort to realize this ideal, actively
pursuing dialogue with all employees on their basic rights and career development and setting up avariety of consultation opportunities as well as mechanisms—just in case—to report compliance abuses.
We also implement a variety of initiatives reflecting the globalization of our business, from promoting
diversity and inclusion in our human capital to globally implementing fair employee evaluation systems
and working conditions.

Global Human Capital Development
Advancing Global Human Capital
Our global human capital management strategy optimizes
both human and organizational performance. One exampleof our initiatives is the Global Human Capital Database
covering all Hitachi Group employees, excluding factory
workers outside Japan. This database enables us to fully
ascertain the status of worldwide Group human capital. We
have also built a global grading system that applies to all
managers in the Hitachi Group worldwide, using it as acommon platform for job evaluations throughout the Groupand as a common standard for assessing the value ofmanagement duties.
We began to thoroughly revise our training ofmanagement candidates in fiscal 2015, implementing theGlobal Advanced Program for Key Positions (GAP-K) toConducting a Global Employee Survey
Since fiscal 2013, we have been conducting an annual
global employee survey called Hitachi Insights as a way ofmeasuring employee engagement.* In September 2016,
the survey was administered for the fourth time. Around
210,000 employees worldwide were sent the survey in oneof 14 different languages, and roughly 180,000 responses
were received.
The results for internal awareness and understandingof the 2018 Mid-term Management Plan and employee
attitudes toward Hitachi’s corporate culture improved in all
14 categories, including those concerning the plan’stargets, compared to the findings of the previous fiscal
year’s survey.

Career Development Initiatives
Hitachi believes that the starting point of careerdevelopment is the work that employees perform on a daily
basis. Based on Hitachi’s Global Performance
Management (GPM), we implement a cycle aimed at thegrowth of each employee through a process in which goals
for daily tasks are set and then pursued, followed by theevaluation of the results to formulate the next objectives.
Along with our workplace-centered initiatives, we also
provide direct support for individual employees through ourcareer development programs. In fiscal 2002 we launchedthe Hitachi Career Development Workshop (H-CDW) as a76

Hitachi, Ltd. Integrated Report 2017accelerate their development. In fiscal 2016, 23 people
were selected to participate in GAP-K over a three-month
period. Additionally, Hitachi has held the Global Advanced
Program for Leadership Development (GAP-L) in Singapore
every year since fiscal 2012. The program mainly targets
local human resources with potential for leadership at therespective subsidiaries outside Japan. In fiscal 2016, 24
leaders from around the world took part in the program.
Starting in fiscal 2014, we also initiated a globally
standardized training course for general managers and newmanagers. To date, around 7,200 people worldwide havetaken part in this course across our Group.

Scores were particularly high for “pride in your company”
and “teamwork,” but those for “resources and support”
remained low from fiscal 2015. Employees may haveexpected Hitachi to do better on the level of staffing as well as
information and resource tools—a situation we will continue
to address by reforming working patterns, introducing new
tools, and deepening communication with employees.
* Hitachi uses the term “engagement” to refer to employees’ understanding of
the company’s strategies and policies, as well as their job satisfaction anddesire to take actions on their own initiative to bring about results.

Group-wide initiative in Japan. Around 9,700 people haveparticipated in the program so far (as of March 31, 2017),
with a focus on technicians, managers, and researchers intheir thirties. According to the January 2016 survey
conducted of the most recent participants, about 80% of
the 422 answers received from group managers and about
70% of the 277 answers from section chiefs agreed that
“H-CDW has been helpful to my career development andwork.” Of the responses from section chiefs, about 60%
reported making use of their workshop experiences inmanaging subordinates.

Developing Women’s Careers
Hitachi, Ltd. has created two key performance indicators(KPIs), announced in fiscal 2013, to enable as many female
employees as possible to take up leadership positions andto participate in management decision making. We
organize a variety of seminars to boost women’s motivation
and also take steps to enhance awareness and create awomen-friendly corporate culture in workplaces as awhole—including managers and male employees.
Employee compensation is set according to eachindividual’s roles and achievements, with no divisions ordifferences based on gender or age.

CEO Message

an environment where women and other members of ourvaried workforce can use their skills in leadership andbusiness management. In October 2016, we introduced anAllowance for Balancing Child Care and Work to further
promote balance between work and child care.
The Diversity Development Project, launched in fiscal
2006 under the president’s direct leadership, was replacedin fiscal 2009 with the Diversity & Inclusion Development
Center, which currently operates under the directsupervision of the Human Capital Group.
Additionally, Hitachi and 17 Group companies jointly
operate the Advisory Committee and the Diversity
Development Council to accelerate awareness acrossHitachi as a whole, including support for diverse humancapital and work-life management.

In November 2016, we hosted the first Global Women’s
Summit for female employees of the Hitachi Group. Held in
the United Kingdom, the event was attended by more than
120 staff members from 25 Group companies around theworld and featured a keynote speech from an external
speaker and workshops on topics ranging fromunconscious bias to individual career development. The
participants also shared stories about their careers and theissues they faced at their workplace.

Strategic Focus

Promoting Diversity and Inclusion
Diversity is the wellspring of innovation and our growthengine. Hitachi regards personal differences—gender,nationality, work history, age, sexual orientation, andphilosophy—as facets of people’s individuality. By
respecting our employees’ individualities and positioning
them as an advantage, Hitachi frames its diversity andinclusion as conducive to both the individual’s and thecompany’s sustainable growth.
Since the 1990s, we have been at the social forefrontin supporting women and other members of ourmultifaceted workforce. This includes setting up systems tohelp balance work with child and nursing care. Entering
Phase 3 of our diversity management roadmap, we areembracing diversity as a management strategy under theslogan of “Diversity for the Next 100.” This means creating

Our Business Model

Diversity and Inclusion

Goals for Hitachi, Ltd. (KPIs)

Hitachi, Ltd. Integrated Report 2017Management & Governancecompanies, with 40% of senior management positions heldby European personnel. The CEO of global operations is aLondon local who has since become an executive officer atHitachi, Ltd.

77

Performance

Recruiting Human Capital in Europe
The railway business, which is an important business fieldfor Hitachi, is promoting the recruitment of local humancapital. We shifted the primary site of our railway businessto London in 2014 and built a global operations framework
managed by Hitachi, Ltd. and several other Group

Value Creation

Appoint female executives by fiscal 2015 by promoting from within (including the CSR and Environmental
Strategy Division chief as a corporate officer in April 2015).
Increase the number of female managers in Japan to 1,000 by fiscal 2020 (2.5 times more than at the end offiscal 2012).

Occupational Health and Safety
Fundamental Idea for Occupational Health and Safety
Ensuring the health and safety of all employees is the basic principle underlining the Hitachi Group Health and Safety Policy.
This policy is shared by all Hitachi Group companies around the world. Employees work together to create safe, secure
work environments that aim to be accident free.

Hitachi Group Health and Safety Policy
Principle
Policies“Health and Safety Comes First.”
In accordance with our mission, “Contribute to society through the development of superior,original technology and products,” the Hitachi Group will endeavor to ensure safe and healthy
workplaces under the principle of “Health and Safety Always Comes First.”

To accomplish this, we will:
1. Continually be involved in health and safety activities in order to prevent work-related injuries and sickness bydesignating the health and safety of employees as management’s top priority.
2. Comply with the local laws and regulations in each company regarding health and safety.
3. Develop a safe and comfortable work environment by encouraging employees to maintain their own health and taking
a proactive stance on health and safety activities in the workplace.
4. Require an understanding of Hitachi’s principle and the promotion of health and safety awareness from all business
partners of the Hitachi Group.
5. Contribute to the creation of a safe and pleasant society by emphasizing activities that make health and safety a toppriority in all of Hitachi’s business activities.
Revised November 2013

Framework for Promoting Health and Safety
Hitachi views occupational health and safety as vital
preconditions for advancing our business. Manufacturingand maintenance are particularly accident-prone lines ofwork, and we have around 36,000 employees performing
work of this type in Japan. We promote a range of Groupwide occupational health and safety activities globally that
include preventing workplace accidents by setting andapplying minimum safety standards to be observed byGroup manufacturers as well as taking additional measures
tailored to the specific conditions at each company. We
respond quickly when an accident occurs and use lessons
from the incident to make improvements and boost ourlevels of health and safety management.
In accordance with Japanese law, a health and safetycommission—composed of company representatives,
labor-union officials, and employees—is convened every
month to discuss and share information related to such
issues as workplace accident causes and78

Hitachi, Ltd. Integrated Report 2017

countermeasures, the situation regarding employees who
have taken sick leave, and other points of concern. In
2016, we recorded one fatal workplace accident in Japanand two in the rest of Asia.
We built the Hitachi Group Health and Safety Portal
System in 2012 to ensure that the health and safety
performance of every Hitachi Group company in Japan isshared by the entire Hitachi Group. Group-wide information
on work accidents is registered in the system so thatcompanies can track causes and see what preventive
measures have been initiated. To help prevent recurrences,
statistics are kept on types of accidents. Since 2014, wehave carried out initiatives to share information on
workplace accidents globally, including one that tracks andprovides feedback on accidents occurring at Group
companies outside of Japan.