2019
Corporate Social
Responsibility Report

Cosel Co., LtdReport Policy

Contents

Cosel Co., Ltd. issued its first Environmental
Report in 2000 and has disclosed our efforts forenvironmental conservation since then.
We have decided to issue this CSR Reportfrom 2015 to inform our stakeholders not onlyof our environmental efforts, but also of ourCSR (corporate social responsibility) efforts
and communicate with them.
Cosel Co., Ltd. will strive to contribute to therealization of a sustainable society through ourbusiness activities and improve our reports sothat they can fully serve as a tool tocommunicate with our stakeholders.

Report Policy and Contents ・・・・・・・・・・・・・

1

Top Commitment ・・・・・・・・・・・・・・・・・・・・・

2

Management Philosophy, Charter on Ethics
and Standards for Voluntary Action ・・・・・・・・・・

Reporting Period
May 21, 2018 – May 20, 20193

Company Profile and Financial Information

5

Business Outline ・・・・・・・・・・・・・・・・・・・・・

6

Switch Mode Power Supply Application
Example ・・・・・・・・・・・

7

History ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

9

With Our Customers ・・・・・・・・・・・・・・・・・・

10

With Our Shareholders and Investors ・・・・

11

With Our Clients ・・・・・・・・・・・・・・・・・・・・・・

12

With the Community ・・・・・・・・・・・・・・・・・・・

13

With Our Employees ・・・・・・・・・・・・・・・・・・・

14

Approach to SDGs ・・・・・・・・・・・・・・・・・・・・

15

Reference Guidelines
ISO26000CSR Activity Report Based on ISO 26000

1

Environment ・・・・・・・・・・・・・・・・・・・・・・・・・

16

Organizational Governance ・・・・・・・・・・・・

31

Respect for Human Rights ・・・・・・・・・・・・・

34

Working Practice ・・・・・・・・・・・・・・・・・・・・・

36

Fair Business Practice ・・・・・・・・・・・・・・・・・

39

Consumer Affairs

・・・・・・・・・・・・・・・・・・・・

44Community Involvement
and Development ・・・・・・・・・・・・

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Cosel Co., Ltd. CSR Report 2019

Top Commitment
Basis of Cosel’s CSR: Management Philosophy “Responding to the Trust of society
by Putting Quality as the Most Important Priority”
In accordance with our management philosophy “Responding to the Trust of society by Putting Quality as theMost Important Priority,” Cosel has been conducting business activities to contribute to society through our“quality-first” approach to manufacturing and providing products and services.
When we use the word “quality,” it refers not only to the safety or quality of a single product, but also to“changing quality” and “desired quality” required for the sustainability of society, which means any kind of
quality. Cosel’s attitude toward CSR is based on this management philosophy and has been handed down
within the organization.

Basic activities to fulfill social responsibilities
We have a customer-oriented and quality-first mindset and promote business activities in all fields,
including product planning, development, designing, procurement, production, sales and CS
improvement. Interaction between such activities produces the Cosel Quality, which we value most.
We believe that the continuous improvement of quality reassures customers and means responding
to the trust of society in the end. Cosel has established a system and structure that help maintainstrict adherence to corporate governance, risk management, and compliance, the three fundamental
elements in corporate management to fulfill social responsibilities.

Efforts for environmental conservation
In accordance with our environmental policies and the Action Guidelines to realize the policies, weaggressively promote the reduction of the environmental burden generated from our business activities underthe environmental management system.As a company that develops and manufactures electronic products,
we believe we can help promote energy conservation for our customers and in a social system by developing
and providing products that reduce power loss and save significant amounts of energy and by promoting
environmentally-conscious efforts in our procurement and production activities, and thus contribute to therealization of a sustainable society. We consider our efforts for environmental conservation will contribute to
the resolution of our business challenges.
We also believe that it is our mission and responsibility to pass our precious global environment on to thenext generation in a healthy state.

Working toward technological innovation to create new values
The recent situations surrounding us have been changing enormously and we are facing various social
problems and challenges. In addition, customer needs have become diversified due to globalization. Thatmeans the definition of “quality” in our management philosophy has changed and become diversified. We
believe it is important to accurately grasp changing “quality” in a timely manner.
Cosel has set “Grasping needs from a customer’s perspective and developing high-value added products
and services” as the vision in the 7th mid-term management policy. This vision represents our aim to grasp theneeds of customers and society and what they want to achieve at an early stage through communication andcooperation with them and create, co-create, and realize new values for the future.
We will work hard on innovation in technology and manufacturing that are required to this end and promote
the development of value-added products and services by taking advantage of such innovation.

The development of a workplace where each employee can play a role and the cultivation ofhuman resources
The basis of manufacturing is the cultivation of human resources, and human resources serve as the
backbone of our business activities and CSR activities. We believe that the growth of each individual
employee and evolution of the organization will lead to the company’s ability to respond to a change, whichreassures customers and helps the company develop perpetually.
We also believe that strengthening professional management skills and techniques, as well as sharing eachindividual employee’s thoughts, respecting each other, and supporting each other’s growth constitute the baseof the enhancement of the organization’s ability.
This is the reason why we value communication and teamwork.
In order to be a company where each employee develops theirskills through hands-on training and grows further by utilizing
their own skills, we will strive to develop such a culture andenvironment for the cultivation of human resources and continue
to grow as a company.
、

Masato Tanikawa
President & Chief Executive Officer
Cosel Co., Ltd. President

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Cosel Co., Ltd. CSR Report 2019

Management Philosophy
Based on our management philosophy, Cosel works hard
to improve our corporate culture continuously by utilizing
the idea and techniques of total quality management (TQM).
In increasingly competitive electronics markets such as
the switching power supply market, we strive to display ourpresence and competitive advantage while clearlypresenting a unique vision and meet the expectations ofsociety by providing attractive technologies and products ofhigher quality.
Management Philosophy
Responding to the Trust of Society by Putting Quality
as the Most Important Priority

Charter on Ethics and Standards for Voluntary Action
The Charter on Ethics and Standards for Voluntary Action have been established so that all
executive officers and employees of the Cosel Group become deeply aware of their social
responsibilities, completely comply with applicable laws and regulations in all of our businessactivities, and act in accordance with social ethics in order to realize our management philosophy.

Charter on Ethics(1) Compliance with laws and social norms
Comply with laws, social norms, common sense, and rules, as well as the spirit thereof, inaddition to internal rules and regulations such as this charter in all business activities, andensure that the Cosel Group’s business activities are conducted properly in a manner thatcomplies with social ethics.
(2) Contribution to society
Make efforts to provide world-leading products and services that meet market needs andcontribute to society by doing so.
(3) Respect for human rights
Respect the basic human rights of all and never commit any act of discrimination or any act
that violates the dignity of individuals.
(4) Information disclosure
Disclose information properly and conduct fair, just, and transparent business activities.
(5) Environmental conservation
Conduct business activities in consideration of the environment and safety in order to coexist with nature and protect the global environment and natural resources.

Management Philosophy
・Charter on Ethics
・Standards for Voluntary Action,
Internal rules and regulations, etc.

Awareness and sense of ethics ofeach employee

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Cosel Co., Ltd. CSR Report 2019

Standards for Voluntary Action(1) Sincere response to customers
We will value the opinions of customers and utilize them in all business activities including
product development.
(2) Quality first
We will continue our efforts to provide the best quality products and services that satisfy ourcustomers.
(3) Product labels, explanations, and ads
We will provide our customers with accurate knowledge on the use of our products and give thema sense of security and satisfaction.
(4) Fair and just transactions
We will conduct fair and just transactions such as procurement and sales.
(5) Relationship with anti-social forces
We will never form a relationship with any anti-social forces or groups that pose a threat to theorder and safety of civil society.
(6) Timely information disclosure
We will disclose proper information to our shareholders, investors, and customers in a timely
manner so that they can correctly understand the financial health and general business activities
of Cosel and the Cosel Group.
(7) Prohibition of insider trading
We will never conduct stock transactions that fall under insider trading or might be suspected as
insider trading.
(8) Confidentiality
We will never leak confidential information without good reason.
(9) Protection of company property
We will take good care of all company properties that create corporate value and never commit
any act that would damage them.
(10) Protection of intellectual property
We will work hard to protect our intellectual properties and take all possible measures not toviolate the intellectual property rights of others.
(11) Responsible performance of duties
We will perform our duties responsibly in accordance with laws and internal rules andregulations.
(12) Distinction between private and public matters
We will clearly distinguish corporate roles from private roles and never confuse corporate
interests with personal interests.
(13) Maintenance of a healthy and safe workplace
We will comply with laws and internal rules and regulations concerning a safe and healthy
workplace and work hard to create such a work environment.
(14) Respect for human rights
We will respect human rights and work hard to create a workplace free of discrimination against
sex, age, place of origin, race, belief, religion, disease, or disability.
(15) Prohibition of sexual harassment
We will never commit sexual harassment in any way.
(16) Prohibition of power harassment
We will never engage in any behavior outside the proper scope of business that slanders the
personality or violates the dignity of the person or commit harassment by taking advantage of asuperior position of power.
(17) Privacy protection
We will respect personal information to the maximum extent and never infringe, misappropriate ordisclose such information falsely.
(18) Overseas operations
We will respect local laws, customs, and cultures while conducting our business activities
overseas.
(19) Environmentally-conscious business activities
We will comply with environmental laws and internal environmental rules and reduce adverse
environmental impact in all business activities to conserve the global environment.
(20) Contribution to society
As a good corporate citizen, each of us will strive to contribute to the realization of a good society.
(21) Political involvement
We will take a neutral stance to politicians and political groups and never provide any improper
benefits or favors to them.

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Cosel Co., Ltd. CSR Report 2019

Company Overview■Trade Name

： COSEL CO.,LTD.

■Headquarters： 1-6-43 Kamiakae-machi, Toyama City, Toyama Prefecture, 930-0816 Japan■Business： Manufacturing and Sales of Electric Devices and Electrical Machine Equipment■Main Products： Regulated Power Supplies (such as Switch Mode Power Supplies)■Representative： Masato Tanikawa■Date of Establishment ： July 26, 1969
■Paid-in Capital： 2,055 Million Yen (As of May 20, 2019)■Annual Sales： 276,870 Million Yen (As of May 20, 2019)■Number of Employees ： 680 (Non-consolidated basis as of May 20, 2019)■Affiliates： COSEL U.S.A.INC. (San Jose, USA)COSEL EUROPE GmbH (Frankfurt, Germany)
COSEL ASIA LTD.(Hong Kong, China)
COSEL (Shanghai) Electronics, Co., Ltd.
Wuxi Cosel Electronics Co., Ltd.
Shanghai Cosel International Trading Co., Ltd.
COSEL VIETNAM Co.,LTD
Powerbox International

Financial Information (Consolidated)
Operating profit/Current profit/Net income

Sales
PRBX Product
EMI Filter
On-Boaed

JPY Millions
30,0006,000

25,0005,000

20,0004,000

15,0003,000

10,000

2,000

5,000

1,000

Operating profit
Net income

Current profit

00FY2014FY2015FY2016FY2017FY2014FY2018JPY Millions

Net ssset

FY2016FY2017FY2018Net income per share/Return on equity

Net asset/Total asset
50,000FY2015（JPY）
100

Total asset

40,000Net income per share
Return on equity

(%)
9.0

90

8.0

80

7.0

70
30,000

6.0

60

5.0

50
20,000

4.0

40

3.0

30
10,000
0

20

2.0

10

1.0

0
FY2014FY2015FY2016FY2017FY20180.0
FY20145FY2015FY2016FY2017FY2018

Cosel Co., Ltd. CSR Report 2019

Business Outline
Many electric components including semiconductor devices are used in electronics products suchas industrial and commercial equipment. For this equipment to operate, electrical power delivered
to factories and households needs to be converted from alternating current (AC) to direct current(DC). Our regulated DC power supplies make this possible.
In particular, switch mode power supplies are our main products. They are used in many electric
devices such as information syastems, telecommunications, medical and FA equipment because
they are compact, light weight and highly efficient.
We can say that switch mode power supplies are the hearts of this equipment and hold a key tothe future of the electronics era.
Through never-ending dialogue with new technologies, we have been developing reliable
products that will help build the future of electronics.

Unit Type
Unit type
Power supply
Regulated
Power supply

PC Board TypeStandard
Power supply
On-Board Type
On-Boad type
Power supply

Power Module Type

EMI/EMC Filter

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Cosel Co., Ltd. CSR Report 2019

Switch mode power supply unit
Signs

Industrial
equipment

Communicationequipment

Large LED
sign board
Industrial
robot

Mobile phonebase station

Advertising information signboard

CP applied equipment

Medical equipment

ATM

Ticket-vending
machineCT scanner

Other equipment

EV charger

Various control boards

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Cosel Co., Ltd. CSR Report 2019

Switch mode power supply unit

LED Sign forShibuya
advertisement

LED lightingHigh speed train
ATC on-board equipment

Wind power generator
Power converter

Cosel's Switch mode power supplies are used in a variety ofindustrial equipment, public infrastructure and so on.

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Cosel Co., Ltd. CSR Report 2019

History
5 different development departments gathered together at R&D center from Oct, 2018 in order tosurvive the market competition by developing new products. Each development can share theknowledge, ideas and latest technology as well as inspiring each engineers at R&D center.
Cosel will accelerate our new product development and launch attractive products more harderthan ever.
Business Achievement
FY1967

Quality management/
Environment management

QC circle

Established as Kitamura Electronics
Sales Inc. (Private company)

FY1969 Established ELCO Co., Ltd.
Completed Head Office and Factory at
Kamiakae-machi Toyama
Concentrated the recourses in PowerFY1978Supply business
FY1973

Organized Quality management Dept

FY1979Introduced QC Circle activity
Held 1st company-wide QC circle contest

FY1980 Expanded Head Office
Introduced and started TQC guidance
meeting.
Obtained the first UL standard
certification for J series
Selected a Model factory that is the most Introduced management by
FY1983 efficient among small and mid-sized
policy(planning a long-term and annual
business in Toyama
management plan)
FY1982

Participated in a QC Circle contest
outside Cosel for the first timeAwarded an excellent company prize
FY1984 from Small and Medium Enterprise
AgencySelected a Model factory that is the mostCertified the CSA standard for KMC
FY1986 efficient one from Small and Medium
seriesEnterprise Agency
FY1987

Certified the first EN standard by TUV for Participated in all Japan QC Circle
PMC series
contestAwarded the small and mid-business
FY1988 center prize from Small and Medium
Enterprise Agency

Introduced Toyota Production System.
Obtained the first 3-mark(UL/CSA/TUV)
safety standard certification for P series

Became a secretary for Toyama Regionof QC Circle,Hokuriku Branch

Introduced V.I(Visual Integration)

Became a chief company of QC Circle
activity in Toyama, Hokuriku area

FY1989Completed Tateyama factory at
Tateyama-machi Toyama

FY1992

Changed company name to COSEL CO.,LTD. from ELCO CO., LTD.

Certified ISO9001 as first certified
company in Toyama

FY1993
FY1994

Shares listed as an over-the-counter
stock in Tokyo Exchange StockFY1996Introduced TPM activity

Awarded as a contributed company for
FY1998 Toyama district promotion from Ministry Started KI activityof land and infrastructure
Shares listed on the Second Section of
FY1999 the Tokyo Stock Exchange and Nagoya
Stock ExchangeAwarded a TPM prize in 1st class for our
excellent achievement
Certified ISO14001

Shares listed the First Section of the
FY2000 Tokyo Stock Exchange and Nagoya
Stock Exchange
FY2002 Expanded Head Office

EMI/EMC Filter

Started KI activity

FY2003Chief company of QC Circle activity in
Hokuriku area

FY2004

Started TQM guidance by an external
consultant

FY2005 Established Noise Filter businessAwarded "Ishikawa prize" that is theStarted TQM guidance for our subsidiarymost authoritative about QC Circle
companies by an external consultant
activity in Japan.

FY2006

FY2007 Expanded Tateyama factory
FY2008

Our president was awarded “anenthusiastic employer about QC circle
Completed RoHS Directive for all models activity” prize.
Participated in the all Japan QC circle
presentation contest first time.
Became a secretary of QC Circle activity
in Toyama, Hokuriku area
Started CINPR and KYT (Self-TQM)

FY2009Awarded Gold prize in JHS division of all
Japan QC Circle presentation contest
Awarded "Ishikawa prize" that is themost authoritative about QC Circle
activity in Japan.

FY2012 started production in China
Completed incorporation of Vietnam
FY2015 Plant. Cosel Vietnam Co., Ltd., atransformer-manufacturing subsidiary.

Awarded "Ishikawa prize" that is themost authoritative about QC Circle
activity in Japan.

Cosel announces it acquires The
FY2018 Powerbox Group.
Completed R & D Center.

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Cosel Co., Ltd. CSR Report 2019

With Our Customers

Basic attitude toward quality
Cosel has set the quality policy “Creating Products and Services that make customers feelreassured” based on our management philosophy (organizational goal) “Responding to the Trust ofSociety by Putting Quality as the Most Important Priority.”
We believe the basis of quality assurance activities to be the reliability of products and theprovision of a sense of security to customers, which form the foundation of the trust of society
including customers.
Cosel will strive to continuously improve quality at all stages from product planning anddevelopment to production, sales, and service in order to provide our customers with attractive
products and services that win their trust and make them feel secure and satisfied.

Development of the quality assurance system
We have developed our quality management system (QMS) in accordance with the requirementsof ISO9001, the international quality management standard, and are working hard to monitor andimprove each process.
We strive to promote quality assurance activities at all stages from the beginning of manufacturing
to the time when customers finish using products in order to provide them with products that satisfy
them. Specifically, we are pursuing customer satisfaction focusing on every stage of our businessactivities; product planning, product development, manufacturing, sales, and customer care.
Utilizing valuable customer feedback, we correctly grasp customer needs and plan products. At the
product development stage, we test product quality utilizing indexes such as function, performance,and environment and design products that customers can use with peace of mind. We also value
quality at the product planning stage and work hard to prevent potential defects by conducting
expert design reviews and utilizing methods such as FMEA and DRBFM.
At the production stage, we perform thorough quality control and ship products that have passed
quality inspections.
We employ a system that enables us to trace the components used in the shipped products andthe arrival dates of the components from bar codes, and are well-prepared to swiftly narrow the list
down in case abnormalities occur.
As part of customer care service, we provide technical support services by toll-free phone andcontact form on the website, and our dedicated support staff members do their best to respond toinquiries from our customers quickly and accurately.
We all strive as one to conduct our business in order to keep providing our customers withattractive products and services that win their trust and make them feel secure and satisfied.

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Cosel Co., Ltd. CSR Report 2019

With Our Shareholders
and Investors

Holding an annual general meeting of stockholders
Cosel holds a regular general meeting of shareholders each year in early August. Held in 2018 at
the Toyama Daiichi Hotel, 52 shareholders attended.
At the meeting, shareholders asked us a lot of questions. We deeply communicated with each other,helping them understand Cosel further.
At every meeting, we conduct a questionnaire to collect opinions and requests on matters widely
ranging from the contents of presentations to our management. We strive to apply what we learn
from the questionnaires to the future.

Enhancement of information provision tools
Cosel has an “Investor Relations” page on the website to provide our shareholders and investors
with information in a prompt, fair manner. On the website, we provide various kinds of information
with easily accessible: business descriptions, an outline of performance, business strategies,
financial information, and account settlements, etc.
As we redesigned our website (English version will be available later) in September 2015, it now
contains more detailed information and is much easier to use.

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Cosel Co., Ltd. CSR Report 2019

With Our Clients

Partnership with clients
We strive to build a transparent relationship of mutual trust that enables us to thrive and prosper
together with our clients from a fair, global perspective in compliance with laws and social norms.
We believe it is important for us to improve our partnerships with our clients by maintaining andstrengthening such relationships.

Green procurement in the supply chain
Our products are made of many substances and should never contain substances that have anegative effect on the earth and humans when or after being disposed of at the end of a product’s life,
not to mention those that customers actually hold in their hands.
We are working hard on green procurement in cooperation with many companies constituting our
supply chain as it is difficult for Cosel to achieve such a goal alone.

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Cosel Co., Ltd. CSR Report 2019

With the Community

Regional contribution activities
Cosel’s Standards for Voluntary Action sets forth one of our responsibilities, “as a good corporate citizen,
each of us will strive to contribute to the realization of a good society.”
We value interactions and communications with the local community and work hard to contribute to and get
involved in their development.
Examples of our activities are shown below.
[Education] Participation in the planning of the JEITA Toyama Monozukuri Class targeted atelementary school students in the region[Support for sports activity] Joint hosting of “Cosel Cup Challenge Super Kids” with a local broadcastingstation[Internship] Students are able to deepen their understanding of the working world, companies, and society
and develop a grounding as a member of society through working experience.
[Blood donation] Donation of employees’ blood to Japan to support the Japanese Red Cross Society Blood
Center[Fund-raising] Donation of the proceeds from a company bazaar and the money collected from employees to
the Community Chest of Toyama
We conduct such activities every year.

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Cosel Co., Ltd. CSR Report 2019

With Our Employees

To create a workplace where employees can have a worthwhile job

In consideration of the safety, hygiene and healthcare of our employees, we are working hard topromote their work-life balance by supporting employees with child care and nursing care
responsibilities so that they can consider a balance between work and personal life and lead a more
fulfilling life. In addition, we aim to create a workplace where employees can try anything andachieve a fulfilling work environment.
To this end, we conduct safety and health patrols, hold health consultation events with an industrial
physician, offer a well-established leave system (promotion of the use of annual paid leave,refreshment leave, healthcare/volunteer leave, maternity leave before or after childbirth, short-timeworking system for child care, family care leave, etc.), promote club activities, and employ a reward
system.
We will work hard to provide our employees with a better workplace and make improvements sothat Cosel and its employees can grow together.

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Approach to SDGs

Sustainable development objectives (SDGs) are international targets from 2016 to 2030 as stated in
the 2030 Agenda for Sustainable Development adopted at the United Nations Summit in September
2015.
SDGs has the following 17 targets and 169 targets that made the goal more specific.
We will do various activities so that Cosel can contribute to achieving SDGs.

GOAL No. Contents
Economic growth must be inclusive to provide sustainable jobs and promote equality.
1
The food and agriculture sector offers key solutions for development, and is central for2hunger and poverty eradication.
Ensuring healthy lives and promoting the well-being for all at all ages is essential to3sustainable development.
Obtaining a quality education is the foundation to improving people’s lives and4sustainable development.
Gender equality is not only a fundamental human right, but a necessary foundation for a5peaceful, prosperous and sustainable world.
Clean, accessible water for all is an essential part of the world we want to live in.
6
Energy is central to nearly every major challenge and opportunity.
7
Sustainable economic growth will require societies to create the conditions that allow
8
people to have quality jobs.
Investments in infrastructure are crucial to achieving sustainable development.
9
To reduce inequalities, policies should be universal in principle, paying attention to the10needs of disadvantaged and marginalized populations.
There needs to be a future in which cities provide opportunities for all, with access to
11basic services, energy, housing, transportation and more.
Responsible Production and Consumption.
12
Climate change is a global challenge that affects everyone, everywhere.
13
Careful management of this essential global resource is a key feature of a sustainable
14
future.
Sustainably manage forests, combat desertification, halt and reverse land degradation,
15
halt biodiversity loss.
Access to justice for all, and building effective, accountable institutions at all levels.
16
Revitalize the global partnership for sustainable development.
17

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

The Environment
Environmental Policies
We set Environmental Policy that represent our basic attitudes toward the environment and share themacross the organization. We show our approach to environmental problems to society and promote ourefforts toward the realization of a sustainable society.

Environmental Policy
Environmental Principle
Harmonize production and product development with the environment, endeavor to maintainand improve the global environment and thereby contribute to the society
Action Guideline
The following action guidelines are set to embody our environmental principles.
(1) Offer environmentally friendly products.
(2) Avoid unnecessary consumption of resources and promote reuse of waste.
(3) Reduce and eliminate the use of environmentally unfriendly chemicals
and endeavor to improve the global environment.
(4) Set and review goals and objectivities to control our activities,
work for continuous improvement and prevent contamination.
(5) Comply with national and local environmental regulations and align with
the needs of customers and local communities.
(6) Enlighten employees about environmental preservation including biodiversity conservation
through environmental of all employees.
This environmental policies are made public.
Enacted on May 21, 1999

Revised on July 24, 2012
Masato Tanikawa
CEO
Cosel, Co., Ltd.

Rose blooming in the Ranjonomori
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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Environmental Management System
Environmental Management Structure
We have the environmental management structure to conduct efficient environmental controls.
President

Environmental auditors*1

Chief environmental
manager*2

Environmental
committee

Division in charge ofenvironmental management

Conduct
environmental audits

Department

Beautification and Recycling
Committee

OfficeSectionPromote and give direction on
recycling activities

Safety and HealthCommittee
Make recommendations
for improvement
regarding Industrial
Safety and Health Law*1 Chief environmental manager = Chairman of Environmental Committee*2 Made up of the heads of major departments

ISO14001 Certificate
In order to become a company that is trusted by stakeholders, we have acquired ISO14001
certification at our Head Office Plant and Tateyama Plant and are continuously promoting
improvement activities. We started the use of the 2015 version in October 2016, had a transition
audit in June 2017, and successfully acquired certification of the 2015 version.
・Date of Acquisition:
1996 version December 17, 1999
2004 version October 21, 20052015 version
July
7 ,2017
・Area Covered:
Head Office Factory ・Tateyama Factory
・Registered by:
Japan Quality Assurance Organization

Internal Environmental Audit
We conduct an internal environmental audit every year to confirm our compliance with ISO14001 andthe status of implementation and performance.
Each auditor reports audit results including findings for improvement to each department manager.
Each department reviews their activities and engages in continuous improvement activities.

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Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Fair Business
Practice

Working PracticeConsumer Affairs

Community
Involvement andDevelopment

Environmental Consideration in Product Development

Development of highly-efficient small-sized power supplies
When we develop new products, we conduct an environmental assessment from the perspectives of resourcesaving, energy-saving, recyclability, the use or non-use of toxic substances and the environmental friendlinessof packing materials. We promote efforts to develop more environmentally-friendly products. In addition, we
have established our own evaluation criteria and certified and registered products with high environmental
impact reduction effect as "Eco model".

Small and High Efficiency Power Supply for Medical Equipment; PCA1000F
EnergysavingPoint 2
Point 1
Small footprint

High efficiency

Resource
savingApprox. 7%

better

６５% smaller

Small size and large capacity DC-DC power supply ; MGFS40/80
Resource

Point 2savingHigh efficiency
Power density is doubled

Point 1
Global common standard size

Energysaving

1X1 inch MGFS40
1X2 inch MGFS80

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Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Fair Business
Practice

Working PracticeConsumer Affairs

Community
Involvement andDevelopment

Environmentally-friendly eco products and their symbol
In 2010, we developed a new internal environmental assessment system in order to promote thedevelopment of environmentally-friendly products and actively provide our customers with environmental
information on our products. We evaluate our products based on the following 3 items to reduce theirenvironmental burden.
(1) Environmental burdens generated when our products are operated at customers’ sites(2) Environmental burdens generated when our products are manufactured at our plants(3) Environmental burdens generated when materials and components we purchase are manufactured
Based on these 3 items, we set our own criteria to certify and register products that satisfy the criteria
and are highly effective in reducing their environmental burden as "Eco Products."
To promote Eco Products, we developed the following symbol that represents Eco Products.
Number ofmodels250

Total number of Eco Products

200
150
100
50
0
2010

2011

2012

2013

2014

2015

2016

2017

2018 FY

Symbol of Cosel’s Eco Products

We will actively expand our Eco Products to create an environmentally-friendly, recyclingoriented, low-carbon society and to continue to grow with our customers.

19

Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Environmental Consideration in Component Procurement

Control of environmentally-unfriendly chemicals
Since Agenda 21, an action plan that includes “Environmentally-sound management of toxic
chemicals, including the prevention of illegal international traffic in toxic and dangerous products,” wasadopted at the UN Conference on Environment and Development (UNCED) in 1992, stricter
regulations relating to toxic substances including the EU REACH framework and the EU RoHS
Directive have been developed at home and abroad and environmentally-friendly products have been
in demand.
At Cosel, we have established the “Green Procurement Standards” on products and activities atplants that specify “prohibited substances” and “controlled substances.” By using them as terms ofbusiness with our clients as well as an internal rule, we are working hard on the control ofenvironmentally-unfriendly chemicals to make our customers feel safe.
Management of new components, new products, and mass-produced products
Since 2006, we have been conducting X-ray fluorescence analysis (*) by target measurement parts toprevent the entry of environmentally-unfriendly chemicals into our products. X-ray fluorescenceanalysis allows us to confirm and verify compliance with the “RoHS Directive.”■Adoption of new components and launch of new products
When employing a new part, we ask suppliers to submit a Warranty for Non-inclusion of RoHS
Materials in order to confirm the non-inclusion of the substances restricted by the RoHS Directives.
In addition, we also ask them to submit a list of used materials for each component and check theactual goods against the list to check for any omissions. Then, we compare them with theEnvironmental Chemicals Data and the result of fluorescent X-ray analysis and finally register thematerials that are proved to have no problem only.
■Acceptance of purchased components
We also conduct X-ray fluorescence analysis at a frequency depending on the risk rank when we
receive purchased components to check whether they contain environmentally-unfriendly chemicals.

X-ray fluorescence analysis (*) X-ray fluorescence spectrometer
X-ray fluorescence analysis is an analysis method in which atoms constituting a molecule are irradiatedwith X-rays and the atoms that are present in the sample can be detected based on the characteristic
wavelength and the energy intensity of the X-rays emitted from them.

■Starting the portal site operation
Since June 2017, we have started receiving the data of contained environmental chemicals fromsuppliers and communicated our green procurement standard on the portal site that we developed for
efficient data collection.
Education on management of environmentally-unfriendly chemicals
Since 2006, we have carried out education on the management of environmentally-unfriendly
chemicals.
The program is intended for people working for Cosel at our Head Office Plant/Tateyama Plant and at
our contract manufacturers, logistics contractors, and repair contractors.
Using training material developed by the division in charge of environmental management, training
sessions are held by departments and tests were given to participants to check their understanding.
This enables them to deepen their understanding of the objectives and the importance of managing
environmentally-unfriendly chemicals as well as the efforts made by Cosel.

20

Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Compliance with RoHS Directive and REACH
The RoHS Directive came into effect on July 1, 2006 (*1). It restricts the use of six substances thatnegatively impact the human body and the environment (mercury, lead, cadmium, hexavalentchromium, PBB, PBDE.)The Directive was revised on January 3, 2013. In the new Directive (2011/65/EU:RoHS2), therestricted substances and their tolerated maximum concentration values remain the same. However,the number of product categories was increased and the CE marking requirements were added.
Cosel reduced the content of these six substances in our products to the levels specified by the RoHS
Directive in February 2006 and started to display CE-mark on our products complied with the RoHS
Directive in June 2015 (*2).
EU official journal ((EU)2015/863) announced that the 4 phthalates (* 4) become the addition to a
RoHS Directive newly in June, 2015. And 10 substances shall be restricted from July 22, 2019.
We have investigated the content of phthalic acid 4 and confirmed the production process, etc.
REACH requires all companies manufacturing or importing chemical substances within the European
Union in quantities of one ton or more per year to register these substances with the European
Chemicals Agency (ECHA) in its database.
Failure to register means the substance cannot be manufactured or imported.
As new substances are added to REACH’s list of Substances of Very High Concern (SVHC) every 6months, we expect our suppliers to quickly inform us of the latest information on contained
substances.
Information on compliance with the RoHS Directive and information on SVHC content in the
REACH Regulations so that companies that procure Cosel products can quickly and efficiently
understand chemical substance content information The Ministry of Economy, Trade and Industry
has developed and released the “chemSHERPA Data”, an environmental chemical substancetransfer tool managed by the JAMP(*3).
(*1) What is RoHS Directive?
RoHS Directive is an EU directive that restricts the use of certain hazardous materials in electrical andelectric equipment. The use of six substances, mercury, cadmium, lead, hexavalent chromium,polybrominated biphenyls (PBBs), and polybrominated diphenyl ethers (PBDEs) have been prohibitedsince July 2006.
(*2) Products that will be out of production are excluded.
RoHS compliant products are marked with the letter “R” at the end of their lot numbers (someproducts have the letter “R” in the upper right of the label.)(*3) JAMP stands for Joint Article Management Promotion-consortium(*4) 4 phthalates
Bis(2-ethylhexyl) phthalate (DEHP), Butyl benzyl phthalate (BBP), Dibutyl phthalate (DBP) andDiisobutyl phthalate (DIBP)
Pb
Lead
PBB
Polybrominated biphenyls

Hg
Mercury

DIBP

CertainHazardous
Substances

DEHP

DBP

BBP
PBDE
Polybrominateddiphenyl ethers

Cd
Cadmium

Cr6+
Hexavalent chromium

21(※3)four phthalates
After July 22,2018

Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Environmental Consideration in Manufacturing

Reduction of environmental burden at production sites
In-house development of automatic soldering equipment
We have developed compact soldering devices in-house to reduce the assembly cost by half and are
now improving them. Compared with the conventional soldering tank, cost, MT (machining time) andinstallation area are reduced by 25-60%.
Comparison with Current Soldering BathCompact soldering device【Equipment cost reduction】
３２％ reduction【Auxiliary material cost reduction】
４８％ reduction【Maintenance man-hour reduction】
６０％ reduction【Area reduction】
２５％ reduction

Comparison of power usage with current soldering baths(Compared with A type soldering device)
100%
100%
80%
63%
reduction

60%
62.0%
40%
37.0%

20%
0%

[Current] A-type
Soldering device[Current] B-type
Soldering device

22[In-house Development]
Compact soldering device

Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Discrimination and separation of jigs and tools
At production sites, RoHS compliant products and RoHS non-compliant products are produced on
separate lines in principle. Devices, jigs, and tools are dedicated respectively for the each productionlines.

Label of lead-free solder

Label of eutectic solder

Equipment, jigs and tools used in the soldering process are distinguished by the labels ormarks shown in the pictures.

It says, “Lead-freesolder only!”

Mark on soldering bath23

Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Fair Business
Practice

Working PracticeConsumer Affairs

Community
Involvement andDevelopment

Efforts for Effective Use of Resources
Promotion of 3R (Reduce, Reuse, Recycle) activities
We are promoting and working hard on 3R activities from the perspectives of the reduction ofenvironmental burden and the effective use of resources. We will continue to work on waste control,
recycling and separation through business activities.

Discharge amount
300.0

Recycling rate

Recycled/reused resource
Waste(％) 94.7
94.4 95.3 95.7 95.3 95.7 95.7 96.6 97.0 94.1
Valuable resource
100.0

(ｔ)

250.0

80.0

200.0
159.4

150.0
100.0
50.0
0.0

115.0
8.2

133.7

138.0
127.4 119.0

162.5

150.1

206.5

201.3

60.0
40.0

13.9

9.8
11.3
21.0 20.0
9.3
10.2 7.9 7.1
11.4
76.0
60.4
53.5
49.2
33.1 46.4
30.0 38.9 32.8 32.3

0.02009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (FY)Examples of our efforts■Reduce:
Air cap bags were used to send certain
components to our contract manufacturers. They
were disposed of as industrial waste after being
unpacked.
We reduced the amount of waste by using
reusable returnable containers as a new packing
material.

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (FY)

Air cap bag■Reuse:Chip components are wound on plastic reels and shipped fromsuppliers to us. Empty reels were disposed of after use as stabilizedtype industrial waste. Because they do not become deformed, stainedor damaged after use, they are now collected and reused by suppliers.

■Recycle:
Defective products that cannot be shipped as products and substrates that were cut off in the
production process were disposed of as industrial waste. Now we separate them into metals,
plastics, etc., before disposal so that they can be used to cast ingots or serve as a combustion
improver in furnaces.
We regularly check the status of separation to raise employees’ awareness of waste separation.

24

Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Fair Business
Practice

Working PracticeConsumer Affairs

Community
Involvement andDevelopment

Efforts to Prevent Global Warming
Promotion of energy saving
We have been consuming a large amount of energy power. In order to reduce power consumption,
we are conducting energy saving activities. Since the establishment of the company, all the
fluorescent lamps at our plants and offices have had pull switches and we have been making surethat the lights are turned off during breaks and when not in use to reduce the amount of power
consumed. Today we utilize a power monitoring system we have established to call employees’
attention by releasing power usage data by area on the Intranet. We have also set a target of
reducing CO2 emissions by 2030 compared to 2013: -30%. Development of eco-model products
We will implement measures to reduce energy consumption, and further promote energy saving
activities and global warming prevention activities.
CO2 emissions

CO2 reduction target(ｔ-CO2)

3,000

100%

2,500
2,000

2,229 2,173

2,136

2,542 2,571
2,119

60%
40%

1,000

20%

500
0

80%

2321

0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
(FY)
*CO2 emissions in manufacturing

2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030

1,500

2,008

2,394 2,321

92.5%

(FY)

Use of renewable energy
In 2002, a 60kw solar power generator was installed on the rooftop of the new Head Office building.
It generated approx. 60,000kwh per year (reduced CO2 emissions by approx. 25 tons.) A 50kw
solar power generator was installed on the rooftop of the Tateyama Plant in 2004 and two moregenerators were added in 2007 and 2011. They generate approx. 200,000 kwh per year (reduce
CO2 emissions by approx. 88 tons.)
Tateyama Plant solar power generator
We also have installed a power generation display monitor in-house so that employees can checkthe amount of power generation anytime.
Amount of power generated by the solar power generators
(kwh)

250

221.0 209.8

200
150

178.1
141.5

209.6 204.0

173.9

201.5

207.7

151.7

Tateyama Plant power
generation display monitor

100
50
0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (FY)25

Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Community
Involvement andDevelopment

Consumer Affairs

Environmental Goals and Targets
Achievement status of 2018 environmental goals and targets
The achievement status of 2018 environmental goals and targets is shown in the table below.
Due to the decline in orders, the amount of waste per unit consumption will increase
Unfavorable results were noticeable due to the downward revision of capital investment.
The internal awareness of eco-friendliness has spread, and the number of successful applicants has
greatly exceeded the target.
[Evaluation] ○: Target achieved ×: Not achieved
Achievement status of 2018 environmental goals and targets

Goal

No.

Control item

TargetResultEvaluation

1

Contribution to CO2emissions reduction by
Number of developed models oflaunching Eco products in the Eco Products
market (U emissions)

38 or more

19 models×2

Production by eco production Number of Swing-type solder
linemachine in service

10 or more

5 unit×

Amount of waste per sales
Reduction of industrial waste [kg/million yen]

0.452 or less

0.95

×

Recycling rate

97.0% or more

94.10%

×

Internal Goal Setting

Setting deadline-

×

Maintenance of nonuse warranty
Certification

Target model 100%

100%

○

Operation start of chemSHERPA

Deadline

System has
been built

×

Conformity check of production
line

Inspection andmaintenancecompletion○

12 or more

23 people○

3

ESG / SDGs compatible

4

RoHS directive 4 additional
substances compliant

5

Raising of vironmental
awareness

6

Number of Eco people (Ecolicence holders)2019 environmental goals and targets
2019 environmental goals and targets are shown in the table below.
The progress of each item will be reviewed at the Environmental Committee that is held every othermonth.
2019 environmental goals and targets

No.
1
2
3

4

5

Goal

Control item
TargetStratification of usage per floor by Power usage
Power consumption reduction
power monitoring systemanalysis report
Product production by eco- Swing type solder tank operation
4 new units
production line
numberDevelopment of energy
No.of developed models of Eco
32 modelssaving products
Products
Basic waste per sales volume0.452 or less

Reduction of Industrial waste Stable industrial waste volume

70% or more

Drafting ESG / SDGs

Recycling rate

97.0% or more

Target and internal goal setting

Up to 2020/5

26

Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Fair Business
Practice

Working PracticeCommunity
Involvement andDevelopment

Consumer Affairs

Environmental Accounting
FY 2017 environmental accounting
In fiscal 2018, environmental investment increased with the construction of the headquarters water
heater and generator and R & D center.
In terms of environmental conservation and economic effects, the amount of electricity used was
reduced by solar power generation, emissions were converted to valuables, and gains on the sale ofvaluables amounted to approximately 18 million yen.
*Calculated based on the “Environmental Accounting Guidelines 2005” by the Ministry of theEnvironment.
Covered area: Head Office Plant/Tateyama Plant
Environmental conservation costs/R＆D center
Unit: ¥ thousand

Category(1) Cost within business area

Description

Investment

Cost

Environmental conservation costs to reduce the environmental burden generated from production/service
activities within business activities.
i. Pollution prevention cost
00ii. Global environment conservation cost
67,94729,732iii. Resource circulation cost05,092(2) Upstream/downstream cost

(Cost) Promotion of green procurement
Control of environmentally-unfriendly
chemicals

Cost to reduce the environmental
burden generated upstream or
downstream in association withproduction/service activities.

(3) Management cost
Environmental conservation costs
in management activities(Cost) Maintenance of environmental
management systems
1) Monitoring and measurement of data fromequipment and facilities that generate anenvironmental burden.
2) Response to the survey of content ofenvironmentally-unfriendly chemicals(4) R&D cost

093,7930

13,74000Environmental conservation costs in
R&D activities

Total

67,947 142,357*Environmental conservation costs include depreciation costs of capital investment of the previous year and labor costs.
Environmental conservation effect (economic effect)
Environmental conservation effect (volume)(Unit: ¥ thousand)

Item

Effect (volume)(Reduction of power usage through solar power
generation and energy saving efforts)

87.0（ｔ-CO2)

CO2 reduction

Amount of waste used effectively(Amount of recycled, reused, andvaluable resources)

Item

Effect (amount)

15,486

Gain on sale of valuables
Power consumption reduction
amount by solar power generation
Power consumption reduced by inhouse developed solder tank

243.5(t)

2,845
486

Total

18,817*Economic effect based on assumption such as risk avoidance (expected effect) is not posted as an effect.

（Thousand Yen）

Investment

Cost

Economic effect160,000

142,357

140,000
112,085

120,000
100,000
80,00087,56885,19872,04775,006

67,64370,843

66,527

67,94758,65760,00040,77736,89140,00020,000013,6560

2009

20,1938,454 17,403
2,588

2010

2011

10,0420

2012

11,7640

2013

12,477
8,170

2014

33,72828,247
15,637

18,817

12,232

2015

2016

2017

2018 （FY）

Environmental investment and cost and its economic effect27

Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Environmental Burden Data
Amount of environmental burden in 2018
We examine the amount of environmental burden generated from our business activities once a year
and utilize the data to control it.
Period: Dec 2017-Ｎov 2018( ) means the year-on-year changes.

28

Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Working Practice

Fair Business
Practice

Community
Involvement andDevelopment

Consumer Affairs

Environmental Education
At Cosel we offer the following environmental educational programs that are required for environmental management activities.
1) General environmental education: All employees working at Head Office Plant/Tateyama Plant
2) Education on environmentally-unfriendly chemicals: All employees working at Head Office Plant/Tateyama Plant,
temporary workers to whom Cosel continuously entrusts work, all contract manufacturers, logistics contractors, and repair
contractors3) Special environmental education: Workers engaging in the covered work
Environmental education for new employees is incorporated into the training program, so they participate in immediately
after joining the company.
List of courses of special environmental education
No.

1

2

3

4

5

6

Work

Description of education

TargetWorkers engaging in
Method for solder scrap disposal
soldering work
Workers handling organic
Soldering work
Inspection of soldering equipment
solvent
Workers engaging in the
Emergency measures
relevant work
Method of storage, use, and disposal of Workers engaging in theWork relating to disposal of waste
organic solvent
relevant work
solution of organic solvent
Workers engaging in the
Emergency measures
relevant work
Management of industrial waste
Workers engaging in the
Office work relating to industrial waste
management slips (manifests)
relevant work
Confirmation of changes in
How to confirm changes inenvironmental laws and regulations
Workers engaging in theenvironmental laws and regulations
and evaluation of compliance with
relevant workand evaluate compliance with them
them
Inspection when supervising nitrogen
Workers engaging in thegas charging
relevant work
Supervision of nitrogen gas charging
Workers engaging in the
Daily inspection
relevant work
Management of chemicals andManagement method based on internal Workers engaging in thehazardous substances
rules
relevant work

Number of Employees With Environment-Related Qualifications and Certifications

At Cosel, we are working hard to encourage employees to acquire environment-related qualifications andincrease the number of employees with qualifications. The number of employees who have environmentrelated qualifications is as follows.
Number of employees with environment-related qualifications
Number of Credential Holders

No.

Name of Credentials

1

Hazardous materials security superintendent

2

2

Class A hazardous materials engineer

15

3Class B hazardous materials engineer

74Operations chief of lead

4

5

Operations chief of organic solvent

9

6

Special controlled industrial waste Manager

5

7ClassⅠ health officer

88Safety officer

29Fire prevention manager

6

10 Eco test

138

11 ISO internal environment auditor

22

10

29

1

Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Fair Business
Practice

Working PracticeCommunity
Involvement andDevelopment

Consumer Affairs

Enhancement of Environmental Awareness
Waste Separation
We set up containers for sorting in each department and thoroughly recycle.

Promotion of application for Eco Test
“Eco Test (Certification Test for Environmental Specialists)” is a certification test held by the Tokyo
Chamber of Commerce and Industry. There are mainly two purposes for the test: One is to promote asustainable society where an ideal balance between the environment and the economy is achieved. The
other is to develop human resources that take the initiative in tackling environmental problems in society by
utilizing a wide range of knowledge.
We have kept taking the Eco Test since the 6th test and 138 employees have passed so far.
We encourage our employees to take the Eco Test by subsidizing part of the examination fee and applying
a reward system to those who pass.
In 2018, we add the number of employees who pass the Eco Test as a cross-functional environmental
policy management item and aim to further enhance employees’ environmental awareness.
No. of employees who have passed the Eco Test
PassedAccum.Passed

160
130

140
120

99 103

100
80
60
31

40
20
0

7

41

47

55

61

66

69

69

76

108

138

115

86

10

to 7th 8th

9th 10th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21th 22st 23th 24st 25th

30

Cosel Co., Ltd. CSR Report 2019

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Organizational
Governance

Respect for
Human Rights

Fair Business
Practice

Working PracticeConsumer Affairs

Community
Involvement andDevelopment

Organizational GovernanceCorporate governanceCorporate governance system
We consider corporate governance as one of the most important business challenges. We are working hard to
improve our management efficiency to become a company which lives up to the trust and expectations of various
stakeholders. We have adopted the Corporate Auditor System to facilitate management monitoring andcompliance with laws and regulations.
Two of our three auditors are external auditors as specified in paragraph 16, Article 2 of the Companies Act.
Currently, there is no section to support our external auditors. However, information is conveyed to our external
auditors at our monthly board of auditors meeting.
An outside director fulfills the roles of effective surveillance over corporate management and appropriate advice
from the viewpoint of an outsider. Another director will be added on August 9, 2017, and the company will have
two outside directors.
Outline of the corporate governance system
Sha reholders' Meeting
Appointment/Remov al

Board of Auditors
Auditors

Audit

Appointment/Remov al

Appointment/Remov al

Board of Directors
Directors

Accounting
audit

Accounting Auditors
Auditing Firm

ReportAudit

Appointment/Supervision

ReportCEO

Policy Development
Meeting(Expanded)Management Meeting

Auditors’ Office

RC (Risk Management
and Compliance)
Committee,
Env ironmental
Committee, Quality
Assurance Committee

Audit

ReportBusiness Divisions/Group Companies[Board of Directors]
The board of directors makes decisions on mattersrequired by laws, regulations and the articles ofincorporation, as well as management policies andbusiness operations. The board supervises theexecution of duties by the CEO.
The board of directors comprises eight directors(including one outside director) since August 9, 2017.
The meetings are usually held once a month.
Directors execute businesses in their area of
responsibility under the direction of the CEO basedon the management policies determined in meetingsof the board of directors.

Accounting audit[Board of Auditors]
The board of auditors is comprised of three auditors;
one full-time auditor and two external auditors (one ofthem is an attorney). They attend meetings of theboard of directors and other meetings and conduct
audits of the execution of duties by directors.
[Auditors’ Office]
Auditors' Office (one person) which is under the
direct control of the president is established toenhance internal control functions in collaboration withauditors, the board of auditors and accounting
auditors.

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Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Security
Information security
Basic policy for information security
As a company manufacturing and selling switching power supplies and noise filters, we consider it is oursocial responsibility to protect the information assets we possess including those of our clients. We hereby
establish the basic policy for information security and declare that we will follow it.
1. We will establish a system to promote information security to manage it properly.
2. We will provide education necessary to ensure information security.
3. We will introduce proper management measures and work hard to prevent information security incidents
and accidents from occurring.
4. In cases where information security incidents or accidents occur, we will promptly investigate the cause andwork hard to minimize damage and prevent reoccurrence.
5. We will comply with laws and regulations, national guidelines, and other social norms relating to information
security.
6. All employees shall comply with rules and regulations relating to information security and we will takepunitive measures against those who violate them in accordance with our internal rules and regulations.
7. We will develop and implement internal rules and regulationsin accordance with this basic policy.
8. We will maintain the activities mentioned above and strive toimprove them continuously.

BCP (Business Continuity Plan)BCP efforts
We launched the BCP (Business Continuity Plan) project after the Great East Japan Earthquakethat occurred in March 2011 to establish a disaster response system and procedures for initial
response and business resumption.
We have taken earthquake-resistant measures for production facilities and inspection devices thatare used at the plants of the Cosel Group and established a framework where the information
system can be backed up and the core system can run safely in the event of a disaster.
We also conduct not only fire evacuation exercises, but also earthquake evacuation exercises sothat our employees will not be affected when a disaster occurs
Development of BCP in the supply chain
BCP efforts were made by the Cosel Group alone until 2014. However, we plan to work on BCM(Business Continuity Management) across the supply chain and have already started to investigate
the implementation status of BCP by our suppliers (component manufacturers.)

32

Cosel Co., Ltd. CSR Report 2019

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Organizational
Governance

Respect for
Human Rights

Fair Business
Practice

Working PracticeCommunity
Involvement andDevelopment

Consumer Affairs

Information Disclosure and IRProfit return to shareholders
Dividend distribution policy
We regard sharing profit as one of the important policies of corporate management. We pay a performancelinked dividend, while making efforts to improve profitability. It is our policy to return profits to interested parties,
considering 35% as appropriate payout ratio (on a consolidated basis). We are planning to use the internal
reserve for the development of new products, investment in research and development and production
facilities, acquisition of treasury stocks and enhancement of financial standing for the future expansion ofbusiness.

Trend of dividend payment
The trends of dividend payment per
share and dividend payout ratio areshown on the right.

Dividend per share and dividend payout ratio

46.5%

50

Full year
End of 2Q
Dividend payout ratio

50%

42.1%
39.4%
40

26

10

40%

32

30%

36.9%

30

20

35.3%

10

24
10

13

26
26

21

26
25

16

17

21

20%

10%

13
10

0

0%
FY2014FY2015FY2016FY2017FY2018Disclosure of IR information
We strive not only to comply with laws and regulations relating to securities trading and the Timely
Disclosure Rules established by the Tokyo Stock Exchange, but also to actively disclose informationthat we consider it might influence the investment decisions of investors.
We issue press releases and post the latest information and various disclosure documents on our
website accordingly.
Communication with our shareholders and investors
In order to disclose information on our business strategies and performance to our shareholders,investors, and securities analysts accurately and fairly in a timely manner, we not only hold results
briefings twice a year (at the end of a fiscal year and at the time of settlement for the second
quarter) in Toyama and Tokyo, but also conduct IR activities by visiting them quarterly and holdtelephone conferences with them on an as-needed basis.

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Respect for Human Rights
Consideration for human rights
Prohibition of harassment
We respect the human rights of all and work hard to create a workplace free of discrimination
against sex, age, disability, or other status where the dignity of individuals is not violated. Cosel’sStandards for Voluntary Actions specify that “we will never commit sexual harassment in any way”
and “we will never engage in any behavior outside the proper scope of business that slanders the
personality or violates the dignity of the person or commit harassment (power harassment) by taking
advantage of a superior position of power.
We offer all employees anti-harassment education to raise awareness about harassment in theannual compliance education program.

Contact points for consultation
At Cosel, we have established contact points that receive consultations on whether or not certain
behavior violates laws and regulations and reports from employees to give them advice and solve
problems. In addition, our internal rules and regulations specify that reporters should not receive any
disadvantageous treatment and any information given by them should be kept confidential.
We will work hard to strengthen our reporting system by notifying all employees of the contact
points for reporting and improving advisors’ skills.

Relationship with the Labor Union
Cosel has entered into a collective agreement with the Cosel Labor Union, the organization ofwhich our employees have become members to maintain and improve working conditions. We holdlabor-management consultative meetings regularly to maintain healthy labor-management relations.

Prohibition of forced labor and child labor
We prohibit forced labor where employees are forced to work against their will and theemployment of children under the minimum age for employment.

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Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Respect for Diversity
Employment of people with disabilities
Cosel is widely open to people with disabilities.
We can offer an environment where they can find a fulfilling job to do and work hard depending on
their disabilities and skills.
We hope non-disabled employees will deepen their understanding of people with disabilities byworking with them and improve their awareness of respect for human rights.
Employment of elderly people
With the revision of the Act on Stabilization of Employment of Elderly Persons, Cosel introduced areemployment system for people who have mandatorily retired.
We continue to employ older workers under fair conditions depending on the roles andresponsibilities they should take after mandatory retirement in consideration of their work
experience before reemployment and offer them a workplace where they can play a more activerole utilizing their acquired skills and expertise.
Since 2014, we have been providing career training for employees 53 years older or over tomotivate them to develop their career in consideration of the age limit system for managerial
personnel, the extension of mandatory retirement age, and continued employment and foster their
willingness to take on challenges. In the training program, we teach them the pension plan,
retirement benefit system, and reemployment system to raise their awareness before they reach theage of retirement.
Women-friendly workplace
We have introduced and are promoting the following systems in accordance with ¥the Labor
Standards Act and the Child Care and Family Care Leave Act to create an employee-friendly
workplace.
[System for Maternity Leave Before or After Childbirth and Child Care Leave]
Maternity leave before or after childbirth and child care leave are specified in our internal rules.
[Subsidy to gynecological examination]
To help the early detection and improvement in the awareness of women's diseases, theCompany subsidizes half of the medical examination expense of women aged 25 and over. Twenty
employees used the system in fiscal 2017.

Number of users of the Short-time Working System for Child Care
(Persons)

30
25
20
15

19

17

23

20

23

25

13

10
5
0
2012 2013 2014 2015 2016 2017 2018

(FY)

[Sick/Injured Child Care Leave]
Aside from annual paid leave, employees rearing a child in the sixth grade and under in elementary
school are allowed to obtain leave to look after said child in the event of injury or sickness or take saidchild for vaccinations or health check-ups.

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Fair Business
Practice

Working PracticeConsumer Affairs

Community
Involvement andDevelopment

Working Practice
Stabilization of employment
Communication with labor and management
We hold labor-management consultative meetings regularly to disclose to the labor union information about
working conditions, the details of the discussions on various systems including the personnel system, worker
attendance, measures to secure the health and welfare of workers, the status of complaint processing, and thedetails of the report to the Chief of the Labor Standards Office.

Changes in the number of employees
128 people with the acquisition ofPowerbox International AB in June
2018, 13 people for strengthening
new product development andproduction capabilities.
A total of for a total of 141 people
are increased in FY2018.

Num. of employees (Consolidated)(Person)
680
700
539
600
514
520
497
489
500
400
300
200
100
0
2013 2014 2015 2016 2017 2018

(FY)

Promotion of work-life balance
Leave Systems
We have introduced the following leave systems to promote employees’ work-life balance.

■Family care leave
Employees caring for a family member in need of nursing care are allowed to obtain family care leave inaccordance with the terms and conditions of the system.
Days of paid holiday taken yearly■Promotion of use of planned paid leave
13.2
We encourage our employees to take paid leave
14
by requiring them to take 2 days’ paid leave out of
11.3 11.7 11.0 11.7 12.1 11.5 11.5
12their annual paid leave entitlement on a semiannual
10.2
basis as specified by our internal rules.
10
We hope our employees can achieve a good8balance between work and family life, work on
6
self-development, and refresh themselves by working
efficiently, communicating with their superiors and4colleagues, and taking leave in a planned manner.

202010 2011 2012 2013 2014 2015 2016 2017 2018

■Refreshment leave(FY)
Employees are allowed to take refreshment leave days in the milestone year of their service with Cosel
depending on length of their service to refresh their bodies and minds (recognition of service, maintenanceand enhancement of health, and improvement of family life.)

Consideration for working hours[Flextime system]
We employ a flextime system so that our employees can work efficiently while balancing theirwork and personal lives.
[Designation of the no-overtime-work day]
We have designated Wednesdays as no-overtime-work days to encourage our employees tomake time for hobbies, after-work lessons, and spending time with family by leaving the officewithout working overtime.

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Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Working Practice

Fair Business
Practice

Community
Involvement andDevelopment

Consumer Affairs

Human Resource Development
Cultivation of self-development skills
As a work on human resource development, we have established a system to support every employee in their selfdevelopment based on our education philosophy and policy. Our management philosophy specifies that “Wedevelop human resources with the ability to conduct quality control, advanced technical skills, and good personalities
that serve as an engine for business expansion based on our educational policy.” We have established the following
basic educational policy.
1. Revitalize the workplace.
2. Enhance leadership.
3. Absorb required knowledge and techniques and improve skills.
4. Develop skills to operate and maintain an appropriate quality system.
5. Recognize the necessity of the environmental management system and develop skills to operate and maintain it.

Education of human resources
Employees take various educational courses to achieve the basic educational policy goals and develop theirpersonality and skills while challenging each other.

Category/System of education by level

Category
Career education

Education todevelopabilities topromotebusiness

Department
professional
education

Younger
employee

New employee

Mid-career
employeeGroupleaderManagement

Career training (The first year and the fourth year of employment, ageof 30s, 40s, and 50s)

Education by each department

Department basic Technical training for
education
new employees
Company-w ide
basic education

Education to develop
management and leadershipabilities

Education to develop
organizational capacities andhuman qualities

Language education/environmental education/QC education

Management training by level
Education of new
employees

Company-wide lecture meeting/Compliance education

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Fair Business
Practice

Working PracticeCommunity
Involvement andDevelopment

Consumer Affairs

Safety and HealthIndustrial health and safety
In accordance with the Industrial Safety and Health Act, a Safety and Health Committee is established atevery plant in Japan to engage in activities relating to safety and health. Committee members are recruitedfrom each department and make efforts to solve problems relating to safety and health such as disasterprevention, the improvement of work environments, and the correction and improvement of issues relating tohealth and hygiene.
Safety and Health Committees carry out safety and health patrols. When a nonconformity is found,committees prevent industrial accidents from occurring by submitting a recommendation report and correcting
the nonconformity.

Number of industrial accidents(Number)
10

8
7

8

6

6
5

6

4
3

4

2

2
1

2

1

0
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

(FY)

Health management
Excessive workloads such as extremely long working hours may exacerbate health problems such ascerebrovascular disease and cardiac disease.
At Cosel, employees who exceed the limit of overtime work (those whose average monthly overtime hours forthe last 2 months exceed 70 hours and those who work more than 100 hours of overtime in a month) are
required to consult an industrial physician, and those whose average monthly overtime hours for the last 2
months exceed 45 hours can consult an industrial physician by making an application.
We are making these efforts to prevent health problems caused by work.

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Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Fair Business Practice
Risk compliance
Risk management
We have established risk management regulations and categorized corporate risks as follows.
In normal times, risk management is conducted mainly by each department. In this case, risk management ishandled as an annual policy management item by department and a daily management item in the policy
management activities.
As for risk management for contingencies including disasters, accidents, and fires, the policy for response tocrisis situations is set and the highest priority is given to the protection and rescue of human lives andmeasures to minimize the impact on customers. At the same time, the risk management compliancecommittee reviews and assesses the risks to be managed and considers and implements countermeasures.
In addition, we have established BCP (Business Continuity Plan) rules and a system to resume business
operations as quickly as possible in the case of contingencies.

Outline of risks
Risks extracted basedon department functions

Risk management innormal times

Handle risks through policy
management activities and daily
management activities

ex. New product development delay

Compliance

Crisis management

Handle risks through risk
m anagement activities* Risks to be managed are consideredas risks to be subjected to crisis

ex. Earthquake

Quality iss ues

FireImmovable stock

Theft

Delay in shipping and delivery

Giving priority to legal compliance (hereinafter referred to as “compliance”), the Cosel Group has set theCharter on Ethics and Standards for Voluntary Action to be followed by executives and employees of Coseland our subsidiaries and established the following system to ensure that everyone understands the charterand the standards.
Compliance is a basic part of doing everyday business. In order to make sure our employees understand this,the General Affairs Department engages in the establishment and maintenance of the system, education, andenlightenment activities, with the General Affairs Director serving as the supervisory manager.
The Auditors' Office, the internal auditing organization under the direct control of the president, investigates
whether business is conducted in compliance with laws and regulations, the charter, and internal rules andregulations, and reports the results of the investigation to the board of directors and the board of auditors.
The board of directors reviews the compliance system on a regular basis and strives to grasp and improve
problems.

Education and enlightenment
At Cosel, we hold an educational program on compliancefor all employees once a year.
By offering the program continuously, we aim to raise
their awareness about compliance and make themdevelop compliance-oriented values and attitudes.

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Fair Business
Practice

Working PracticeConsumer Affairs

Community
Involvement andDevelopment

Response to Security Export Control Regulations
Cosel’s security export control
While efforts are being made to prevent the global proliferation of weapons of mass destruction andthe excessive accumulation of conventional weapons, non-proliferation export control is requiredand companies are expected to strengthen their voluntary export control.
We have developed internal rules to implement export control and established the export control
committee to maintain control. We are working hard on voluntary export control.
Export control system
Chief executive of export control

CEO
Direcctor in export control(Director of quality
management)
Export control audit
team

Export Control Committee

Chairman of the Committee

Committee member

Committee member

Committee member

Committee member

Committee member

Examination of products
In order to prevent products that are subject to control from being exported without permission, we
examine all our products based on laws and check whether they are subject to control before
exporting them.
Screening examination
We perform screening examinations on customers prior to starting transactions with them in orderto prevent transactions with companies or individuals that might be involved in the development or
manufacturing of weapons of mass destruction.
Education
We regularly hold an education program for employees in the departments that might engage inexport operations.
Report to government ministry
We have established Security Export Control Rules as part of the compliance program (CP) for
export control. We investigate whether our business operations are conducted based on CP andreport the results to the Ministry of Economy, Trade and Industry.

Responsible political involvement
Cosel’s Standards for Voluntary Actions specify that “We take a neutral stance to politicians and politicalgroups and never provide any improper benefits or favors to them.” We also comply with the Public Offices
Election Act, the Political Fund Control Act and other political laws and regulations and make no contributions
or donations to individual politicians as it is prohibited by laws.

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Fair Business Practice
Basic attitudes towards procurement
We strive to build a transparent relationship of mutual trust that enables us to thrive and prosper together withour clients from a fair, global perspective in compliance with laws and social norms.
In order to develop superior products that satisfy customers around the world, it is essential to manage thequality of components and materials we purchase, delivery time and costs, and take the environment into
consideration.
To this end, we deepen mutual understanding with our clients in our daily business activities and regularly
provide them with information concerning quality, delivery time, costs, our management policies, andtechnology strategies.
We believe it is important for us to improve our partnerships with our clients by maintaining and strengthening
such activities.

Request for CSR activities to be conducted by clients
Cosel started CSR (corporate social responsibility) activities in 2015. In order to promote CSR in Cosel as wellas in our client companies, we strive to make our clients understand our basic policy for procurement activities.
When our website (English version will be available later) was relaunched in September 2015, we posted“Request to clients” on the website to notify them of our requests concerning environmental conservation, humanrights, labor and compliance.
1. Appointment of auditors and auditor-secretaries and implementation of healthy corporate management
2. Respect for human rights
3. Development of a safer workplace and improvement of work-life balance
4. Energy saving, CO2 reduction, and environmental conservation
5. Implementation of ethical actions to society
6. Establishment of a relationship of trust with consumers
7. Social contribution to local residents

Approach to the conflict minerals problem
There are concerns that mineral resources mined in the Democratic Republic of the Congo and 9 neighboring
countries are financing armed groups in these regions. In order to address this issue, the Dodd-Frank Act wasenacted in July 2010 in the United States and U.S.-listed companies are required to conduct inquiries todetermine the refiners of the conflict minerals they use and file a report to the U.S. Securities and Exchange
Commission.
We have agreed with the purpose of the Dodd-Frank Act and established the rules for conflict minerals
investigation to promote the responsible procurement of minerals. We explain the purpose and necessity of
the conflict minerals investigation to our clients and collect information utilizing a CMRT (Conflict Mineral
Reporting Template).
When requested to disclose information on the results of the conflict minerals investigation by customers, we
provide information using a CMRT.

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Supplier evaluation
When starting business with a new supplier, we conduct supplier evaluation from the perspectives offinancial status, capacity to supply components, and quality and environment management systems. From anenvironmental perspective, we make it a condition that suppliers comply with our Green Procurement
Standards.
We also evaluate each supplier in terms of previous year’s product quality, supply, cooperation in cost
reduction and environmental conservation at the beginning of the fiscal year, and conduct audits of supplierswith a low evaluation.
New supplier evaluation flowchart

New supplierevaluation

1.Financial status
2.Capacity to supply components
3.Quality management system
4.Environmental substance control system

Pass
Start business
Pass

Regularevaluation

Order placement

1.Quality
2.Delivery time
3.Cooperation in cost reduction
4.Environmental risk

FailedBusiness suspenstion

Green procurement
In order to deliver environmentally-friendly products to customers, it is important to understand thecontent of chemicals not only in our products, but also in our suppliers’ products and disclose andcommunicate information smoothly. We are working hard to establish a supply chain-wide system tothis end.
Cosel established Green Procurement Standards in 2004 and has been using them as terms ofbusiness with our clients. We conduct a regular review to comply with laws and regulations andpromote green procurement.

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Fair Business
Practice

Working PracticeConsumer Affairs

Community
Involvement andDevelopment

Intellectual property-related activities
Attitudes towards intellectual property
The originality of circuits and structures is an important factor for the competitiveness of the switching power
supplies and EMI/EMS filters we manufacture and sell in the market. Advanced technologies to provide suchoriginality are directly linked to product performance and help differentiate our products from others. In order tocontinue our business activities and contribute to society, we are making constant efforts to develop newtechnologies. Believing that it is important to secure competitive advantages by registering and protecting thetechnologies we developed as intellectual properties, we actively apply for patents. To this end, we require
people in charge of intellectual properties and development engineers to discuss this in the development
process and consider the appropriate application for an intellectual property right.
In our intellectual property-related activities, we place importance on compliance with relevant laws andregulations. We make it a practice to search for relevant patents in the product development process torespect the intellectual property rights of other companies that are based on the purpose of laws andregulations concerning intellectual properties, and prevent our products from violating their rights. We strive toimprove the value of our products by entering into a license agreement on valid patents owned by othercompanies as needed.
As we believe that it is necessary to motivate our engineers to develop great technologies and acquire
intellectual property rights for them, we have established a reward system for inventions to provide rewards tothose who acquired intellectual property rights for their inventions based on the status of utilization.

Intellectual property management system
The Intellectual Property Committee is mainly composed of development engineers and conducts activities toacquire and protect intellectual property rights in cooperation with the New Product Development Group,
inventors, and outside experts.
We regularly check acquired intellectual property rights for their utilization status and validity to narrow themdown to necessary ones and maintain and manage them.

Number of patents

Number of patents(Number)
160
140
120

104

127

128

2015

2016

138

150

111

100
80
60
40
20
0
2013

2014

43

2017

2018

(FY)

Cosel Co., Ltd. CSR Report 2019

Organizational
Governance

Environment

Respect for
Human Rights

Fair Business
Practice

Working PracticeCommunity
Involvement andDevelopment

Consumer Affairs

Consumer Affairs
Quality assurance
Quality policy
Based on the Quality Policy, we consider it our mission to offer safe and secure products and services tocustomers and every employee is working hard on daily operations keeping in mind that every business activity
leads to customer satisfaction. Such efforts are being made in all processes: product planning, development andproduct design, to manufacturing, shipment, and maintenance service.

Quality policy
Creating products and services that make customers feel reassured

Quality management framework
The chart below describes flows, relations, and related groups that our quality management system requires.
Quality management structure【Current situation of the Company】
Issues inside/outside the Company
Needs of the interested parties

Quality management system
Management process at managerial leve

Quality policy

productionInspecti
on

Production
preparation

Product
storage /shipment

Service

Support process
Document/archive management

Education/
training

Information
infrastructure

Key process

Facility
management

Management of
testing apparatus

customer

Purchasing

claim

Design /Developm
ent

Order /
Contract

Production
monitoring andmeasurement

Product

Product creation process

Evaluation of a quality management system

・Corrective action

Product/service provision and customer satisfaction

Operation andmanagement of businessresources

Customersatisfaction

Customer requirements regarding products and services

customer・Performance/Customer satisfaction
・Internal quality audit
・management review

Risk andopportunities

Quality target
plan

Supplier

Performance evaluation

Plan
Goal management process

Monitoring and measurement

process

Input・Output

Customer information etc.

commitment

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Quality management system
ISO9001 certification
We have acquired ISO9001 certification and established the quality management system to implement
thorough quality management.
We started the use of the 2015 version in October 2016, had a transition audit in June 2017, and successfullyacquired certification of the 2015 version.
We will work hard to further improve product quality and customer satisfaction.

ISO9001 Certification■Date of Acquisition
・1987 Version June 21,1993 (Toyama prefecture first issue)
・2000 Version March 20, 2003
・2008 Version July 23, 2010
・2015 Version July 7 , 2017
■Ｓcope of Registration
・The design/development,manufacture ure and servicing of stabilazed power supply.
Servicing is limited to returned products.
・The design/development,manufacture(outsource) and servicing of noise filter.
Servicing is limited to returned products.
■Registered officeCosel Co., Ltd.
■Associated organization
・Head Office factory
・Tateyama factory
・Each sales office■Registered by:
Japan Quality Assurance Organization

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Quality assurance system
In order to ensure the implementation and maintenance of various processes, the quality
management system has been established with the manager of the quality management
department as the quality management supervisor.
We have established the quality assurance system by defining basic requirements in theprocesses from product planning, development and quality evaluation, to mass production,
shipment and service, defining these requirements in the quality manual and developing anddocumenting the rules in each step in order to provide products that meet customer needs in a more
timely manner.
Cosel’s quality assurance structure is shown below.
We are striving to solve quality issues by holding regular meetings. The quality management
supervisor and managers of the development department, production department, and quality
management department attend the meeting and make efforts to reduce quality-related problems.
Quality assurance structure46

Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Fair Business
Practice

Working PracticeCommunity
Involvement andDevelopment

Consumer Affairs

Measures to be taken in case of quality problems
When failures occur, our technical staff members deal with them promptly and accurately. We
provide maintenance services such as failure analysis, repair, and overhaul when defects or failuresoccur in the field or within processes.
In case of defects, we always ask customers about the situation and environment where defective
products are used and accumulate such information. By using accumulated data of past instances,
we work hard to investigate the cause and fix defects as soon as possible.
In addition, we analyze the defects of products returned from the market and provide feedback to
the product development site and the production site. Then we implement the PDCA cycle for
improvement from a customer perspective. By doing so, we strive to improve product quality andstrengthen our services so that they can satisfy customers.

Structure of response to quality issues and roles of each department
Development
department in charge

Instruction on
investigation/measures

Implementation of
measuresReportingComplaint
information

Cus tomers
Reporting
Return ofcomplained products

Sales department
Informationcollection

Complaint
information
Reporting
Return ofcomplained products

Request for
implementing measures

Development dept.
service in charge
Investigation/Analysis

ReportingComplaint
information
Instruction on
inv estigation/measures

Quality
management dept.
Checking ef f ictivenessof settlement/measures

Request for
implementing measures

Production dept.
in charge

Instruction on
investigation/measures

Implemention of
measures47

Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Customer care and service
System of customer care and service
We provide technical support service available by toll-free phone and contact form on the website
and our dedicated support staff members do their best to respond to inquiries from our customers
quickly and accurately.
We also provide a wide range of services such as visiting to customers and product evaluation at
our facilities with customers present, as well as technical consultation.
We have stored the details of more than 100,000 technical consultations we received in a database
to utilize such data to improve products and services.
We also strive to improve them by collecting complaint information, performing customer
satisfaction surveys, and continuously examining and analyzing customer feedback.

Protection of customer information
Cosel’s Standards for Voluntary Actions specify that “we will never leak confidential information
without good reason.”
We properly handle the information we receive from our customers and never leak those pieces of
information.

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Cosel Co., Ltd. CSR Report 2019

Environment

Organizational
Governance

Respect for
Human Rights

Working Practice

Fair Business
Practice

Consumer Affairs

Community
Involvement andDevelopment

Community Involvement and Development
Activities to contribute to society
Support for sports activities[Cosel Cup Challenge Super Kids]
The 31st Cosel Cup Challenge Super Chibiko(mean “Kids”) was held at the Toyama Prefectural
Sports Center.
A total of 292 pupils from 110 elementary schools in Toyama Prefecture participated in fivecompetitions;100-meter sprint, participated, and challenged five events of 100m running, ballthrowing ,long jump,zigzag dribbling, and swimming.
The day was blessed with fine weather, a great sporting weather, and a new record for the rally
was held.
Twelve people from Cosel volunteered as children's instructors.

Internships
Internships are an opportunity for students to feel and learn about the working world, companies,
and what it’s like to be a member of society before entering a company through work experience inan actual workplace.
At Cosel, we ask interns to engage in operations relating to design and development such as theevaluation of power supplies, the design and manufacturing of test jigs, and design using 3D-CAD.

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Cosel Co., Ltd. CSR Report 2019

Blood donation
As the falling birth rate and the aging of society are advancing, the number of senior citizens whoneed blood transfusions has been increasing, while the number of young people who can donate
blood has been decreasing, which causes a shortage of blood nationwide.
We conduct a blood donation campaign
for employees every year and support theJapanese Red Cross Society Blood Center.
In 2019, many employees participated in
the campaign.

Fund-raising
We donate the proceeds from an annual company bazaar and the money collected from
employees to the Community Chest of Toyama.
The donated money will be used for activities conducted by the municipal social welfare council
such as its home welfare service business, volunteer development business, preventing children
from getting involved in accidents, and the healthy growth of young people.

Participation in industrial associations
We have become a member of the following industrial associations inside and outside of Toyama
and are working hard to solve various problems in our committees.

・Union of Japanese Scientists and Engineers
・JEITA (Japan Electronics and Information Technology Industries Association)
・Japan Management Association
・Japanese Society for Quality Control
・QC Circle Toyama Section Hokuriku Branch・Toyama Employer’s Association
・Toyama Prefectural Machinery and Electronic Industries Association
・Toyama Association of Corporate Executives
・Toyama New Industry Organization
Society for Young Engineer Development
・Toyama Technology Exchange Club・Toyama Society for the Promotion of Technical Education
・Society for Promotion of Exchange, Center for Joint Research, University of Toyama・Society for Research Collaboration, Toyama Prefectural University
・Society for Technology Promotion, Toyama National College of Technology

50

Cosel Co., Ltd. CSR Report 2019

Cosel Co., Ltd

1-6-43 Kamiakae-machi, Toyama 930-0816, Japan
Contact
General Affairs Dept.
TEL：+81-076-432-8151 FAX：+81-076-441-5324
E-Mail：cosel@cosel.co.jp