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

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

Organizations for Improving Quality
Furukawa Electric has
established Furukawa ElectricGroup Quality Management
Committee, which is chaired by
the president, as the topmostb o d y f o r p ro m o t i n g q u a l i t ymanagement at Furukawa
Electric Group level. Directed by

Promotion Framework
President
Furukawa Electric Group
Quality Management Committee

Representative Quality
Management Meeting

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

Chair : General Manager of the
MONOZUKURI Innovation Division
Members :Quality Promotion Department
Divisional Representative Quality
Management

this committee, Divisional Quality
Management Committees led bydivisional heads promote ongoing

General managers of each business division

Affiliated companies

efforts to maintain or improve theRepresentative Quality Management

quality of our products, customer

Divisional Quality Management Committees

services and operations.

Messagefrom

the General
Managers

In order to firmly achieve “the next level quality”,
we promote the strengthening of quality awarenessand quality governance.
Kazuhisa Kashihara
General Manager, Quality Promotion Department,
MONOZUKURI Innovation Division

Based on the recent public information on many articles,
causes and measures concerning quality fraud in othercompanies, we never consider it as the business of othercompany and we wish to learn from them and lead to
improvements.

32

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

In fiscal 2018, along with continuation of the quality
improvement measures including two projects that havebeen worked on, the quality awareness and the quality
governance efforts will be further strengthened andpromoted.

Society

Targets and Results (Quality)

Achieved

Partially achieved

FY 2017

FY 2018

Targets

Results

Strengthening of fundamental
Quality Power- In all 14 business divisions, the expansionof the Quality Strengthening Project
activities within the divisions wereconducted.

 educe “failure costs” by 10%-Rfrom fiscal 2016

Not achieved

Quality Strengthening Project
The “Quality Strengthening Project”, that has been
underway for four years, sets the important themes
related to the “failure costs” in each business division(including the supervisory affiliates) and the improvement
is promoted by the team activities. In fiscal 2017, thepromoting method was clarified based on the “Guideline”
for problem solving process, and the expansion of theautonomous activities
was promoted ineach division. At theend of the fiscal year,
the meeting to reportresults was held andthe improvementcases were shared.

Risk Free Design (RFD) Project

Achievement

Targets

Strengthening of fundamental
Quality Power educe “failure costs” by 10%- R
from fiscal 2017

TOPICS 50th anniversary of EFLEX
Our flexible
underground c able
protecting pipe
"EFLEX" launched in
1967, celebrated its
50th anniversary in2017. The corrugated
HDPE pipe, with its
EFLEX Square Ductlight weight, long
length and flexibility features were highly valued by thecustomers, and the cumulative shipment of the productreached approximately 520,000 km in fiscal 2017, which isequivalent to 13 circumferences of the earth in distance.
The "EFLEX Square Duct" series was launched in February,
2018, responding to the market needs to support accelerating
removing utility poles in Tokyo for the 2020 Tokyo Olympic
Games.
We will continue to support and to respond to the needs forrealizing a sustainable society.

In the “RFD project”, the resource improvement whichis “Reformation of the way of thinking” was started,
based on the innovative change of consciousness ofengineers involved in designing and development and of
the people in charge. Also, the improvement of theprocess for design and development “Restructuring of
the mechanism” was started.

Issues and the future policy
In order to achieve the next level quality, two projects
will be continued.
As differences were shown in the procedures for the
problem solving processes among the departments, theIn fiscal 2017, in “Reformation of the way of thinking”,“Quality Strengthening Project” will continue to be thethe training has started for all the topics aiming for further

autonomous activities of change by each divisions. Also,

improvement by fiscal 2020. In “Restructuring of thein this activity, the key human resources for the quality

process”, the guidelines were created, and the operation

improvement will be developed

started at the training implementation divisions.

In the “RFD Project”, the practical development ofconsciousness and knowledge obtained through thetraining will be promoted.
Also, the enhancement activity on the “quality
compliance” and the “quality governance” will bepromoted, taking into account the recent quality frauds inthe manufacturing industry in Japan.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201833

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

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

Conducting Training on Subcontracting Transactions
In order to forge sound relationships with businessIn fiscal 2017, we evaluated some 199 business partners

partners through fair transactions that comply with rules

and provided feedback to them. Furthermore, based on

and regulations, Furukawa Electric Group provides

the results of the assessment and our own experiences

training for employees on subcontracting transactions. In

during the suspended production that resulted from snow

fiscal 2017, in addition to continuing with the courses wedamage at Our Nikko Works, we requested ongoinghave conducted to date, we sought to ensure thoroughcooperation from certain business partners on businessawareness of the content of the act against delay incontinuity and stable supply initiatives.

Payment of Subcontract Proceeds, Etc., to Subcontractors.

Partners Meeting and Partners Evaluation Scheme

Promoting CSR in procurement activities
Based on our CSR Deployment Guideline for Business

Furukawa Electric seeks

Partners, we engage in procurement activities with “fullt o de ep en a w arene s slegal compliance and fair trading practices” andamong our business“consideration for human rights, safety and thepartners through regularly

environment”. We are also continually providing

held Partners Meeting,encouragement at partners meeting by explaining thew h ere w e e x pla in thestate of our efforts to our business partners, asking forstate of the Company, ourtheir cooperation with our activities, and so on.

procurement policy and individual company management
strategies. For fiscal 2017, this meeting was held in June
and was attended by 55 main business partners.

Value chain BCM (Business Continuity Management)
Furukawa Electric conducts regular questionnaire

We also evaluate main business partners on the basis

surveys on its main partners about their BCM measures.

of quality, technology, price, delivery system, degree ofIn fiscal 2017, we held questionnaire surveys for mainsocial contribution and credit condition, and then, we

partners and placed the results we received from ourprovide feedback on our findings, in partners meeting. In

business partners onto a database. In this way, we haveaddition, we discuss the results of our evaluations withbecome able to quickly identify which partners are mostly

them to more closely align our awareness of procurement

likely to be affected during a natural disaster.

activities. As part of that, we accelerated the activities ofProcurement Logistics in fiscal 2017. By collectively

34

reduction through efficient logistics.

Conflict Minerals (note)transporting purchased goods on our logistics, it will be

Regarding the handling of conflict minerals, ourleads to environmentally conscious effort such as CO2

approach to responsible mineral procurement has been

reduction, and it will also be an activity that leads to costto comply with the code of conduct of the EICCFURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Society(note) D efined as minerals (tantalum, tin, gold, tungsten or theirderivatives) that originate in or near the Democratic Republicof the Congo that may help to finance armed conflict.

(Electronics Industry Citizenship Coalition), including
setting a Group policy and informing other Group
companies and partners.

Challenges and Future Policy

In fiscal 2017, in addition to carrying out ongoingsurvey into the usage of conflict metals in mainstay

We want to fully grasp the state of our CSR activities

products at Furukawa Electric and our Group companies,

along the value chain by regularly asking our partners to

we have actively promoted procurement from smelters

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

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

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

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

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

entire value chain. Internally, during group training held at

Industries Association (JEITA), an industry organization,

the Procurement Department, we have held exercise andon initiatives targeting the responsible sourcing of minerals.

seminars on the handling of BCM in order to raise ourawareness.

Targets and Results (Procurement)

Achieved
FY2017

Targets

Strengthen strategic relationships withpartners
 ngoing implementation of the partner-O
assessment system and utilization of
feedback discussions-P romote awareness of CSR Deployment
Guidelines among partners

Partially achieved

Not achieved

FY2018Results

Achievement

 onducted partner evaluations-Cof about 199 main partners andheld partners meeting- Introduce our CSR Deployment
Guideline by procurement system
online-E xamination and implementation of
measures to strengthen the value chain byutilizing BCM questionnaire surveys and site
surveys results

 eviewed and increased the-Rnumber of supply points (andsometimes recommended tohold inventory) for important
products-C arry out conflict minerals survey (data
update survey)- A conflict materials surveys (data
update surveys) was done

Targets

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

Messagefrom

the General
Managers

We will strive to achieve mutual understanding
with our business partners and take further steps
to strengthen our supply chain.
Kazuhiro Takamatsu
General Manager, Procurement Department,
Finance & Procurement Division

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

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201835

Relations with Shareholders
Information Disclosure Policy and IR Framework
Furukawa Electric Group Basic Policy on CSR requiresthat Furukawa Electric Group seeks to improve upon thesound, friendly relationships we maintain with all of our
stakeholders. Our Own Regulations on the Timely
Disclosure of Corporate Information meanwhile set out aframework for the disclosure of appropriate information at
the appropriate time.
Based on this policy, all IR activities are conducted by
the Investor & Public Relations Department and overseenby the director in charge of IR, who is General Managerof the Finance & Procurement Division.

Relations with Institutional Investors and Securities Analysts

Automotive components plant

Returning Profits to Shareholders
Furukawa Electric aims for management emphasizing
capital efficiency and has made the basic policy of its
capitalization strategy to balance strategic investment forIn addition to holding management briefings (covering

growth, the cultivation of the next generation of new

interim and year-end results and mid-term plans whenbusinesses, the improvement of the financial structureannounced) for institutional investors and securities analysts,

and returns to shareholders.

we actively encourage communication all year round.

Under this basic policy, in the “Furukawa G Plan 2020,”
the new medium-term management plan, we will apply
management resources prioritizing facility investment and
R&D for profit expansion in focus business areas(infrastructure / automobile markets) and the creation of
new businesses, strengthen the earning capacity of ourgroup and improve its financial structure, all of which will
support the sustained growth of our group. With regard

Briefing for institutional investors

Relations with Individual Investors
In October 2017, we held our 10th plant tour forindividual investors. Visitors were selected by lottery fromamong those who responded to an open invitation, with
50 people invited to attend out of the 150 who responded.
During the tour, we offered participants a number ofopportunities to get a feel for Furukawa Electric. We
introduced our production processes for optical fiber
cables and automotive components in Mie Works.

to returns to shareholders, we also positions thecontinuation of stable dividends as one of the mostimportant issues of management.
Regarding the year-end dividend for the fiscal 2017
ended March 2018, based on the business result andothers for the current fiscal year, the dividend wasincreased in order to increase the return of the profit to
the shareholders, and 80 Yen per share was paid as ayear-end dividend.
Regarding the dividend for the fiscal 2018 ended March
2019, based on the comprehensive consideration on the
future business development and the return of the profit
to the shareholders, we plan to pay a year-end dividendof 80 Yen per share which is equal to the current term.

Optical fiber plant

36

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Society

Stock Information and Dividends
株式・配当情報
General stock information (as of March31, 2018)

Distribution of ordinary stock among shareholders

Stock Code on theTokyo Stock Exchange
Stock Exchange Listings
Number of sharesauthorizedCommon stock issued
Minimum trading units
Shareholder register
agent
Fiscal year
Shareholders’ meeting(as of March 31, 2018)

5801

Domestic companies, others

Tokyo Stock Exchange, First Section
Common Stock

Treasury stock

6.97％
4,926,411 shares

250,000,000 shares

0.07％
48,650 shares

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

Total number ofshares issued andoutstanding

21.37％
15,104,903 shares

70,666,917

47.39％
33,486,707 shares

Securities
companies

Foreign corporations
21.07％
14,892,650 shares*W e changed the number of shares in a unit of the company’s ordinary shares from thecurrent 1,000 shares to 100 shares with an effective date of October 1, 2016.

Financial
Institutions

3.12％
2,207,596 shares

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

2015/30.0
3.0
3.0

2016/30.0
4.0
4.0

2017/30.0
55 (note)
55 (note)

2018/30.0
80 (note)
80 (note)

2019/30.0
80 (note)
80 (note)(note) W
 e have carried out a reverse stock split at a ratio of 1 share for every 10 ordinary shares with an effective date of October 1, 2016. The amounts if
the reverse stock split is not conducted will be, respectively: 55 yen → 5.5 yen, and 80 yen → 8.0 yen.

(as of March31, 2018)

Major top 10 shareholders of the Company and the Company’s capital contributions to such shareholders
Name of major shareholders
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan,Ltd. (Trust Account)
Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, Mizuho Bank Account)
Japan Trustee Services Bank, Ltd. (Trust Account 4)
Asahi Mutual Life Insurance Company
FURUKAWA CO., LTD.
Japan Trustee Services Bank, Ltd. (Trust Account 5)
THE BANK OF NEW YORK, NON-TREATY JASDEC ACCOUNT
Fuji Electric Co., Ltd.
Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, FURUKAWA CO., LTD. Account)

Number of shares

Shareholding
ratio

8,404,900
5,741,100

11.90%
8.13%

2,413,500

3.42%

2,304,800
1,365,050
1,329,045
1,257,600
1,127,210
1,100,000

3.26%
1.93%
1.88%
1.78%
1.60%
1.56%

1,091,900

1.55%(note) 1. Shareholding ratio is calculated with the number which deducted 48,650 shares of the Company’s treasury stock.
2. Mizuho Bank, Ltd. holds 173 shares separate from the 2,413,500 shares indicated above which have been set by Mizuho as a retirement benefits trust.
3. In addition to the JPY 1,365,050 shares mentioned above, Asahi Mutual Life Insurance Co. also has a further 1,050,000 shares in a retirement benefits trust.

Messagefrom

the General
Managers

We will make efforts to disclose and provide
explanations of our diverse businesses forunderstanding of our shareholders and investors.
Mami Masuda
General Manager, Investor & Public
Relations Department, Finance & Procurement Division

Furukawa Electric’s business began with copper smelting
and the manufacture of electric wires. The numerous
products that we manufacture based on our materials
technology support the lives of people around the world ina wide variety of fields, including telecommunications,electric power infrastructure and automobile.
Based on the four business segments of “Infrastructure”,“Electronics & Automotive Systems”, “Functional
Products” and “Service and Developments”, covering ourdiverse businesses, we will make efforts to disclose andexplain information in order to gain understanding fromour shareholders and investors.
You may have a less chance to see our web site
“Furukawa Here and There” where our products
supporting daily life are introduced and where are receiving
good reviews. We aim to be a company being trusted into
the future.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201837

Relations with Employees
Personnel Management

Human Resources Development

Personnel Management Policy

Enhancement of Education Program

We aim to be a creative and dynamic corporate group

We are training human resources who have richby utilizing diverse human resources globally. It ishumanity and strong challenge spirit, for the sake of our

fundamental to human resource management togroup development.

continuously create personnel who can embody

The state of our leaders affects corporate culture andFurukawa Electric group philosophy, core value andreflects in our business results, which is why we givecontribute to strengthening competitiveness.

training at each level to develop leadership, and construct

Please refer to page 20 for “Furukawa Electric Group
Corporate Philosophy”.

relationships between people by “dialogue” among all our
employees. We work hard to cultivate an interest inpeople and a sense of respect for others.

Medium term policy
In the 2020 Mid-term Management Plan, we set a

Nurturing Leaders Adapted to the Global Scene

mission of pursuing diversity and autonomy in order to

We started our Global Business Leader (GBL) training incontinue growing on global markets, improving our ability

2006 in order to develop personnel who will take on theto respond to changes in the business environment, androle of management in the future. Since fiscal 2013 thisrealizing greater creativity and practical capabilities in ourhas been reformed to Global Mindset Program (GMP), with“people” and “organizations”.

its extra emphasis on global human resource education.

We will implement human resource management to

We have also operated a Global Development Programsupport Furukawa Electric group’s growth strategy(GDP) for overseas local employees since 2010 with the(note), develop-

aim of strengthening links within Furukawa Electric Group,

ment of management human resources, enhancement of

the curriculum being partly shared with the GMP.

HR function in group and global, fostering an employee’s

Furthermore, in fiscal 2014 we launched the Global

autonomous career awareness and improving willingness

Challenge Program (GCP), which dispatches young

to develop capabilities toward realization of career.

employees to foreign countries. We are working to alignthrough penetration of “Group HR Vision”(note) This is our vision for human resources at Furukawa Electric Group.

these various programs to develop human resources who
can play a dynamic role on the global stage.

Main measures contributing to the Group’s global
management

Global Human Resources Training System

1R ealization of “Successor Training Plan” and strategic
placement in important position within group arly selection of candidates and systematic
2E
development and arrangement, for the training of thenext generation of managers
3E stablishment and penetration of “Group HR Vision”,
promotion of career development support andimprovement of personnel system for that purpose
4 Improvement of training curriculum and promotionof human resources exchange, overseas dispatch ofyoung employees
5 Acceleration of diversity management efforts
 romotion of productivity improvement and flexible
6P
working way through “work style reform”

Training global human resources
SP
Generalmanagers
Sectionmanagers
Data Base
Assistantmanagers
Recommend key
people in eachdepartment fortraining as
global humanresources

Global Business
LeaderGBL

FY 2006–2012

Global Mindset
ProgramGlobal Development
Program

GMPGDP

FY 2013–(For local
employees)

Diversity
Global Mind Set
Global Leadership
Business Situation

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

FY 2010 –Global Challenge
Program

GCP(Overseas
dispatching)

38

Mini MBA・Accounting
・Strategy, etc.

1. One FURUKAWA course
2. Frontier course (JICA)

Society

Project to Improve GENBA-RYOKU Capabilities

Using Diverse Human Resources

From fiscal 2009, the training targeted for the

One of our Group’s management philosophy is toemployees in MONOZKURI (manufacturing) site is carried“nurture human resources at every level, so that we canout at each of our Plants. In fiscal 2017, was reopened

become a more diverse and creative organization”. It is

the freshman training targeting the novice technicians.

essential for the progress of our Group’s global

And, the “Workplace Leader Training” targeting

management to create a corporate culture in which moreforepersons was opened, and the consistent training

diverse personnel can succeed.

plans from novices to veterans were prepared. The siteIn April 2014, we set up a Diversity Promotion Section,

staffs from 21 domestic Group companies participating inand are working on various measures such as

the MONOZUKURI training. In addition, The “allorganizational mind fostering, women’s career formation

employees participating special programs” are opened at

support, autonomous work-life management, etc., aiming

the major plants in many companies in Furukawa Electricat building an environment where diverse humanGroup. More than 3,100 trainees participated in the siteresources can be active.

strength training and the activation of the “MONOZUKURI
power” in the workplaces is strived by taking advantageof the “sight strength” in which each person takes action

Diversity & Inclusion Activities
In fiscal 2017, we strengthened
the transmission from the top

based on their own consideration.
Training for novice
technicians.
Exercise in safety bypointing out and giving
voice.

management such as anaccession to “Iku-Boss Enterprise
Alliance”, and support for

Iku-Boss enterprisealliance“Declaration on Action by A
Group of Male Leaders Who will
Create a Society in Which
Women Shine.” .
We worked on individual
fostering of female managers,
created child care brochure formen and held a seminar on

Lecture on
MONOZUKURI staffs
training for the sightstrength.

“Male Leaders’
Association
Accelerating the Activityof “Shining Women”

compatibility between work andnursing care.
These efforts were evaluated,

We are promoting to create a culture which carries out

and in March 2018, we were

“Nadeshiko Brand” logo

the operation with the common language of

selected as “Nadeshiko Brand” as a listed company of“strengthening the GEMBARYOKU”. What’s more, we will

nonferrous metals with excellent women’s success.

strengthen our “Monozukuri capabilities” by working[Objectives related to support the success of women

together as a united Furukawa Electric Group both inin the workplace] (Set new target value in fiscal 2018)

Japan and overseas.

(1) We aim for 7% of females in managerial positions byfiscal 2025.

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

600
500

88

400

Furukawa Electric

43

189 265
423

100
0

24

42

76

76

292

2025.
(3) We aim for 40% of females in university graduates
recruits by fiscal 2025.

183

300
200

Group companies(2) We aim for 15% of females in chief positions by fiscal

344

159

121

156

237 215 181(note) A summary of our company’s initiatives is available on the
Ministry of Health, Labour and Welfare’s “Enterprise databasepromoting women’s success”.
http://www.positive-ryouritsu.jp/positivedb/detail?id=529

2009 2010 2011 2012 2013 2014 2015 2016 2017 (FY)FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201839

Work style reform
From both aspects of “work style change” and“organizational culture reform”, we are promoting activities
aiming at balancing “sustainable growth of the company”
and “enhancement of individual lifestyles (life)”. In fiscal
2017, in addition to encouraging executive officers andFurukawa New Leaf employees at work

department heads to take the initiative, we implemented acampaign called “Working Style Reform Challenge Month”
and accelerated efforts in each department.
Furthermore, in order to achieve results, we believe that
it is important to work together on a team as “anReal employment rate
(From our employment status report on disabled persons)
（％）

2.5

organization where everyone can share own ideas openly”.

2.0

We conducted a “dialogue party” between the president

1.5

and the department/section managers at eight locations
nationwide to deepen their understanding of the

1.83%

0.5

Diversity in Hiring

0.0
2013

business, Furukawa Electric Group has come together to

2.31%

2015

2016

2.23%

1.0

importance of interactive leadership.

In order to respond to the global development of our

2.32%
2.04%

2014

2017

(FY)

Internships

implement a variety of initiatives with the aim of securing

Ever since the Japanese government introduced ahuman resources. In addition to information exchanges tosystem of internships in 1997 as part of an industry-

share know-how on hiring within Furukawa Electric Group,

academia-government collaboration, in our role as awe held Furukawa Electric Group Forum in Tokyo, at which

manufacturer Furukawa Electric has taken on numerous

actively appealed our attractiveness to students.

science and engineering interns with the aim ofcontributing to the fostering of Japanese technicians of the

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

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
21
28
45
61
73
5
8
15
31
31
26
36
60
92
104
1

0

0

1

0

0
0
0

0
0
0

0
0
0

15
0
15

46
0
46

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

future. We have already taken on more than 200 students
across our various workplaces.

Internship training

Improving the Working Environment throughLabor-Management Opinion Exchanges

March 31st 2018, Furukawa New Leaf employs 41

Furukawa Electric maintains a basic position that bothpeople who are intellectually challenged. As of Marchlabor and management should endeavor to engage in15th 2018, Furukawa Electric has an overall disabled

sincere discussions, and therefore we focus on issue

employment rate of 2.13%.

resolution and deepening mutual understanding.

Furukawa New Leaf is doing its bushiness at Hiratsuka

We hold our Central Management Briefings twice

Works, Chiba Works and Mie Works, to further increase

annually for public exchanges of opinion between labor

our disabled employment rate.

and management. We have conducted such meetingsfor 66 years from fiscal 1952. As of May 2018 we had
held these briefings 131 times. Representatives from40

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Societylabor and management exchange frank opinions andlead to improvements in various systems and strengthenshare information about a broad spectrum of items atmonitoring functions, such as compliance response andthese briefings, such as the business environment,

the implementation status of other CSR activities.

management, and topical matters.
We also have in place various committees such as the

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

Personnel System Exploratory Committee and theCommittee for Studying Shorter Hours that are designed

CSR

to improve the working environment, which management

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

and labor discuss on a daily basis. These discussions
Targets and Results (Personnel Development and Working Environment)

Achieved

FY 2017

Partially achieved

Not achieved

FY 2018

Targets

Results

Strengthening of global human- Training menu is to be revised forthe penetration of “One Furukawa
Mind” and the awareness of “Core
Value”- Continuous implementation of GCP-3 0 participants from 15 countries participatedfrom 8/28 to 9/2 Implemented GDP-R eview the content of the training, based onCore Value after reviewing their thoughts
and actions, formulating action plan-O ne participant in the GCP-One-Furukawa
course Addition (dispatch from the Legal
Department to OFS for 3 months)

Strengthening of global human- Implementation of OneFurukawa
Mind Penetration and “Core Value”
conscious GDP training- Continued dispatch of GCP

Reinforcement of Monozukuri
capability
 uilding an educational system to-Bstrengthen “ Monozukuri capabilities”- Implementation of GENBARYOKU
strengthening activities for affiliatedcompanies (Japan and overseas)(ongoing)- Monozukuri education system created- As a support for strengthening“Monozukuri capabilities” of affiliatedcompanies, local on-site field training
was conducted at affiliated companies inJapan (KANZACC Co., Ltd.)

Reinforcement of Monozukuri
capability- I mplementation of “Monozukuri
capabilities” Education-C ontinue to strengthen“Monozukuri capabilities” ofaffiliated companies (Japan andoverseas) (ongoing)

Support for diverse ways ofworking, and work-life balance-P romotion of birth and child careparticipation of father, awarenessof our system, support for infertility
treatment hour-2
 7 people with male childcare leave,
Increased by 20 people over the previous
year-U pdated in-house site to inform worklife balance related system and publishedguidebook for male childcare participation- Introduction of leave system for infertility
treatment

Support for diverse ways ofworking, and work-life balance- The number of people with annual
regular vacation acquisition lessthan 5 days shall be zero
- Introduce a seminar as a careerdevelopment support to parents
who take childcare leave

Achievement

Targets

Messagefrom

the General
Managers

Continue to challenge change based on“Carefully take advantage of the people”
Masako Tanaka
Corporate Vice President, Deputy General Manager,
Strategy Division and General Manager, Human Resources Department

Challenges for the Human resources Dept. are getting
more sophisticated, such as the rapidly progressing low
birthrate and the aging population, the diversification ofwork and work styles based on the technological innovationand the lack of human resources to support the global
business development. It is not an exaggeration to say that“the strategy of the human resources and the organization”
is the most important factor affecting the competitivenessof the company and for the business continuity.
For its history of more than 130 years, “Carefully takeadvantage of the people” has been the DNA of Furukawa

Electric Group. As a person in charge of Human Resources
Dept. I am dedicating with courage more efforts for the newchallenges by taking heed of its origin, in order to survive
this era, and by changing Human Resources Dept. itself.
“A new value is created by a cooperation and by thediversity of human resources taking the advantages of theindividual strengths”, “To grow individuals and enrich theirlives autonomously, it is also essential for the growth of acompany”, I would like to sympathize with these ideas, andincrease the people who make consideration and practice
together.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201841

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

Basic policy on health and safety management•E ndeavor to eradicate accidents by inspections and management in accordance with the Industrial Safety and Health Act.
•P
 romote the realization of “fundamental safety” with a goal of achieving Stage III or higher in separating pedestrians andvehicles and separating people and equipment.
• Improve “safety consciousness” through practical education and risk prediction to encourage employees to become safety
conscious person. (* “Safety consciousness” : (1) Ability to identify points of risk (2) Ability to propose improvements)• Improve Safety and health management systems with a medium-term goal of achieving Stage IV or higher.
•P romote mental and physical health improvement by Furukawa Electric group’s health management activities.

Promotion System
Furukawa Electric Group has

Promotion Framework

established the Furukawa Electric Group

President

Occupational Health & Safety

Furukawa Electric Group Occupational
Health and Safety Committee

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

highest body for promoting occupational
health and safety at a group level. The
committee membership is composedof executives, and carries out deliberation, decision-making and follow-up

General managers of each business division

activities for Furukawa Electric group as

Representative Safety and Health Meeting
Chair :

General Manager of
MONOZUKURI Innovation Division

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

Affiliated companies

Representative safety and healtha whole in respect to policies andDivisional occupational health and safety committees

initiatives in health and safety.

Safety and Health Activities Presentation Meetings

Site inspections by officers

We have been holding presentation meetings on

Furukawa Electric’s safety

Furukawa Electric Group’s safety and health activities andofficers make site inspections atawarding the best with

Furukawa Electric Co., Ltd. andcommendations. In fiscal

group companies whenever an

2017, fourteen teams wereaccident occurs and inselected from the SBUs

accordance with performance in(including five teams fromthe previous fiscal year. They

group companies) to givepresentations and receive
awards from the president.

Furukawa Magnet Wire (Japan)
giving a presentation

Site inspections by officers
at Yokohama Drum
Manufacturing (Japan)

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

Targets and Results (Accidents)

Achieved

Partially achieved

FY 2017
Targets

Zero “accidents withworking loss days”

42

Not achieved
FY 2018

Results

Achievement

Five “accidents withworking loss days”

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Targets

Zero “accidents withworking loss days”

hard to prevent any recurrences.
They also conduct visits todomestic and overseas groupcompanies, and exchanged
opinions with 10 companies infiscal 2017.

Society

Work Accident Occurrence Status

Strengthening Smoking Measures

In terms of its performance in fiscal 2017, Furukawa

Since fiscal 2003, the Company have been

Electric recorded five “accidents with working loss days”,

making the full-scale efforts on smoke curbing

and failed to meet its target of “zero accidents withand implementing the actions for theworking loss days”. The frequency rate of accidents

prevention of secondhand smoke and non-resulting in time off work (note 1) increased to 0.63 in

smoking promotion. As a result of these

Furukawa Electric only but decreased to 0.3 among all
Group companies in Japan (note 2).

activities, the smoking rate of the employees(male) has decreased from 53.3% in 2002 to Non-smoking poster

Frequency rate of accidents resulting in time off work

28.9% in 2017, and in fiscal 2017, non-smoking within

（％）

2.0

All industries (note 2)
Whole Group in Japan

Frequency rate (note 1)

1.58

Whole manufacturing industry (note 3)
Furukawa Electric

1.66“The Company will welcome the 2020 Tokyo Olympic with

1.02

efforts of the triad (information provision, non-smoking

0.72

0.63

support, non-smoking environment maintaining).

0.29

0.28

0.30

2015

2016

2017

1.66

1.61

1.63

1.06

1.06

1.15

0.77

0.51

0.28
2014

full non-smoking!!”, we will continue the multidirectional

1.5
1.0
0.5

0.94
0.71
0.40

0.0

2013

working hours was achieved. In order to achieve the full
non-smoking all over the Company, under the slogan of

Measures to Prevent Falling Accidents(FY)(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2017 covered full-time employees andtemporary staff at Furukawa Electric and 36 Group companies in Japan.
See page 59 for companies included in the calculation.
(note 3) Data on all industries and the whole manufacturing industry is from
Ministry of Health, Labor and Welfare survey results

The falling accident increases with age, even in the
Company, as its members are aging, as the increase offalling accident (including commuting injuries during
walking) is a serious concern, the preventive education

Meanwhile, the 2017 accident frequency rate for thefor the falling accidents and fitness exercises (muscle

whole Group including overseas Group companies wastraining) were introduced from fiscal 2016. In addition, in

0.8. This included accidents both resulting in and notfiscal 2016 the physical function check-ups has been

resulting in time off work.

implemented for employees over 50s, and from fiscal

Healthcare for Employees Working Long Hours
In accordance with the Guidelines issued by the Labor
Standards Bureau entitled “Measures to be Taken by

2017, it was expanded to over 40s.

The Health management declaration and certificatedas the Health management superior corporation 2018

Employers to Prevent Health Impairment Due to Overwork”,

The Company was certified for two

we strive to manage the health of employees who work longconsecutive years as a “Health management

hours by implementing strict limitations on working hours

superior corporation 2018 (White 500)”

based on the results of health checkups and by arranging

which is practicing excellent healthconsultations for such workers with industrial physicians.

management, by the Health Management

Mental Health Education

superior corporation certification system of
the Ministry of Economy, Trade and Industry.

White 500 certificate

We began conducting mental health measures in fiscal 2002, In

In addition, on May 15, 2017, from the managerial view

the past, stress control training, workplace mental health training

point, “Furukawa Electric Group Health Managementwith a focus on Work Engagement, and Pleasant Workplace

Declaration” was enacted, in order to promote “Health

Discussion Sessions aimed at improving the workplace

Management” which strategically strives for the healthenvironment have been implemented across the company.

management and the health promotion of the employees.

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

In order to “aim to become a creative and full of vitality

training and line care training for all employees in theircorporate group by taking advantage of the diverse

early 40s and all middle-ranking managers in order tohuman resources”, we will keep making “a company

improve their ability to respond to various changes. In

where everyone works vigorously, keeps growing and is

fiscal 2016 or later, in addition to continuing to implement

proud” by prioritizing safety and health to everything,these trainings, we will introduce a stress check systempromoting various activities mindful of health managementin accordance with legal revisions.

throughout the Company.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201843

Relations with Communities
Basic Policy
Furukawa Electric Group has continued to conduct social contribution activities that are rooted in the local community.
Going forward, we will strengthen these actions further along the three dimensions of nurturing future generations,promoting sport and culture, and living in harmony with the natural environment and local communities.

Furukawa Electric Group Basic Policy on Social Contribution Activities（Revised March, 2011）
Furukawa Electric Group will continuously undertake social contribution activities focusing on nurturing future
generations, promoting sport and culture, and living in harmony with the natural environment and local
communities, in addition to its business-related activities, in order to maintain and strengthen community ties
built over centuries and create a better tomorrow for future generations.

Efforts of career education “Hamakko Future
Supporter” in Yokohama city
The Company participates in the efforts of “Self-

Implementation of the private companies
training for teachers.
From 1st to 3rd August, hosted by the general

Development Education” promoted by Yokohama city,

incorporation foundation of Keizai Koho Center (Japanand carrying out the work experience learning and theInstitute for Social and Economic Affairs) the privatedelivery classes for elementary and junior high school

companies training was conducted for teachers, and 10

students.

teachers from elementary schools and junior high schools

At Yokohama Works in fiscal 2017, in order to convey

in Chuo-ku and Shinjyuku-ku participated. While valuingthe excitement of the basic research, a group work on

the pleasure of awareness and the sense of

the world in the next 100 years and conducted aaccomplishment with the themes of “Social responsibility

simulated running experiment of a linear motor car usingof schools and corporates”, “Safety and environmental

the superconductive technology. From the participatedactivities” and “What is human resources development”,

junior high school students, we received a comment

we learned together through the exercises, factory tours“What kind of society will be in the future, I am looking

and companies training.

forward to creating it together.”
As a friendly Furukawa Electric and as a dream inspiring
Furukawa Electric, we will continue to work closely andto contribute to the local community.

Group exercise

Work experience learning by junior high school students
at Yokohama Works44

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

Practicing at “Anzen Dojo”

Society

CSR Awards
Ninth CSR Awards
The Company established the CSR Awards to make honorable recognition of the outstanding social contribution
activities and the environmental preservation activities of Furukawa Electric group companies. The CSR Award winningcompanies are devising their activities and continuously contributing to society every day.

Social Contribution Award

Furukawa New Leaf Co., Ltd.

Environmental Preservation Award

The Furukawa Battery Co., Ltd.

Furukawa New Leaf Co., Ltd. Hiratsuka Branch office

With the global consensus on the climate change

provides the opportunities for employment experiences

measures and the goal setting, the interest in the global

for students in the neighboring school for handicappedenvironment is increasing more and more. The storage

person and support education school. Focusing on highbatteries are indispensable for the environmentally friendly

school second and third graders, we enroll one student

vehicles. The Furukawa Battery Co., Ltd. co-sponsors

for one to two weeks. The student engages in cleanup

World Econo Move (WEM), which is an energy saving

activities with our employees, while communicating withrace for the electric vehicles, as a part of efforts towards

seniors employed from the school and receiving guidance

the environmental activities.

on the work methods. Thus, a place to actually

WEM is a competition being held since 1995. It is anexperience the daily life as a social occupant is provided.

energy conservation race competing for a driving

In the six years, from fiscal 2012 to fiscal 2017, total 46

distance within a certain time using the same battery forstudents had the experience.

the convention (made by Furukawa Battery) supplied by

In the first work experience, spending time with people

the host. Through this co-sponsorship, we wish thein different ages is accompanied by huge anxiety andpeople in wide range of generation to be continuously

stress, it is a valuable experience for the students aiming

interested in the global environment.

to work.

Thailand Competition(August 2007 in
Bangkok)Start in Chiba
Competition (Nihon
Automobile College,
October 2010 in Narita)Awards ceremonyin Akita competition(May 2017 in Ogata
Village)Work experience of cleaning activities
Furukawa Battery
members in Indonesia
team (May 2018 in
Ogata Village)
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201845

Activities

in each region

Activity
topicsFurukawa Electric Group conducts
various activities in each region.

Living in harmony with
the natural environment■ Participated in local environment
beautification campaign◦F urukawa Electric(Chiba Works, Nikko Works, Hiratsuka Works, Mie Works,
Copper Tube Division, Copper Foil Division)◦NTEC ◦ Okano Electric Wire ◦ TOTOKU Electric

Nurturing future generations■ Supported and cooperated on work
experience for schoolchildren of all ages

◦Furukawa Automotive Systems ◦Furukawa Sangyo Kaisha◦Furukawa Precision Engineering ◦Furukawa Techno Material◦Furukawa Electric Ecotec◦Furukawa Logistics◦Riken Electric Wire

◦Furukawa Electric Industrial Cable◦Furukawa Magnet Wire◦F
 urukawa Nikko Power Generation◦F urukawa Electric(Chiba Works, Nikko Works, Yokohama Works)◦Furukawa Sangyo Kaisha

Living side by sidewith local communities◦Furukawa Electric Power Systems◦Furukawa Logistics■ Supporting and working withNPOs and special-needs schools◦F urukawa Electric (Nikko Works, Copper Foil Division)◦Furukawa Sangyo Kaisha

Social experience learning by Nikko Junior High school(Nikko Works, Furukawa Electric)

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

Regional exchange volunteer meeting with NPO Habataki(Copper Foil Division, Furukawa Electric)■ Cooperated with the patrol in the region◦Furukawa Electric Power Systems■ Supported private sector training for teachers◦Furukawa Logistics◦Furukawa Electric (Hiratsuka Works)■ Held a fishing event◦Furukawa Nikko Power Generation

Promotion sports and culture■ Participated in, sponsored, and provided
a venue for sporting events◦F urukawa Electric (Nikko Works, Hiratsuka Works,
Mie Works, Copper Tube Division)◦Furukawa Automotive Systems ◦Furukawa Sangyo Kaisha◦Furukawa Electric Power Systems◦Foam Kasei ◦Furukawa Nikko Power Generation46

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2018

■ Hosted, participated in, and supported festivals◦F urukawa Electric (Nikko Works, Hiratsuka Works,
Mie Works, Copper Foil Division)◦NTEC ◦Furukawa Precision Engineering◦Furukawa Electric Power Systems◦Furukawa Magnet Wire ◦Miharu Communications◦Furukawa Nikko Power Generation

Society

Other activities■ Donation to the Kumamoto earthquake◦Furukawa Electric (Yokohama Works)

Watarase drainage basin “Clean Operation” (Furukawa Logistics)■ Donated and raised funds for charities◦Furukawa Electric (Nikko Works, Yokohama Works)◦Miharu Communications◦Furukawa Nikko Power Generation■ Donated blood◦F urukawa Electric (Chiba Works, Hiratsuka Works,
Yokohama Works, Copper Foil Division)◦F urukawa Precision Engineering◦F urukawa Logistics ◦ F urukawa Magnet Wire

Miho pond parkland “Removal of Sicyos angulatus”(TOTOKU Electric)■ Conducted factory tours
for employees’ families◦F urukawa Electric (Hiratsuka Works)◦F urukawa Automotive Systems

Cutting grass in neighboring children’s playground
together with Hosoo Resident’s Association(Furukawa Precision Engineering)■ Conducted beautification activities
outside premises◦F urukawa Electric (Chiba Works, Nikko Works,
Hiratsuka Works, Mie Works, Yokohama Works,
Copper Tube Division, Copper Foil Division)◦NTEC ◦ TOTOKU Electric◦Furukawa Automotive Systems“Open Office” for employee families(Furukawa Automotive Systems)■ Supported the restoration of
the Tohoku region◦F urukawa Electric (Chiba Works, Hiratsuka Works)◦F urukawa Sangyo Kaisha◦Furukawa Electric Industrial Cable◦Furukawa Logistics ◦Furukawa Magnet Wire

Challenges and Future Policy
Furukawa Electric’s works, branch offices, and Group companies are implementing community-based activities
with ingenuity. We will continue investigating programs and other measures which can apply our unique company
characteristics in accordance with the Furukawa Electric Group Basic Policy on Social Contribution Activities.
FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201847