STAKEHOLDERAKEHOLDEROGUE
DIALOGUE

Fourth Sumitomo Electric Group Stakeholder Dialogue

On the Occasion of the Launch ofInitiatives for the New CSR Core Categories
The Sumitomo Electric Group sets ﬁve CSR priority themes. Among them, the three themes of promotion of diversity,
prevention of global warming and promotion of CSR procurement were selected as subjects forthe fourth Stakeholder Dialogue, in which the respective managers in charge of the themes at Sumitomo Electric
exchanged opinions with experts with outstanding knowledge on the themes.
■ Outline of the Stakeholder Dialogue■ GuestsDate: June 4, 2014 (Wed.)

Mr. Eiichiro Adachi

Venue: Osaka Works of Sumitomo Electric Industries, Ltd.

Counselor, The Japan Research Institute, Limited■ Schedule

Mr. Adachi specializes in socially responsible investment (SRI) and corporate social
responsibility (CSR). He has participated in various projects organized by the Ministry of theEnvironment, the Cabinet Oﬃce, Government of Japan, etc., and is mainly engaged inindustrial surveys and corporate evaluation from the perspective of CSR.

1. Factory tour

Professor Yoshinao Kozuma
Faculty of Economics, Sophia University

2. Presentation onthe background of
the review ofthe CSR core categories

Prof. Kozuma specializes in environmental accounting theory and international accounting
theory. He has served as chair and member of CSR- and environment-related review
committees and study groups organized by Ministry of the Environment, Ministry ofEconomy, Trade and Industry, Ministry of Land, Infrastructure, Transport and Tourism,
Ministry of Agriculture, Forestry and Fisheries, Cabinet Oﬃce, Government of Japan,
Japanese Institute of Certiﬁed Public Accountants, etc.

3. Exchange of opinions

Facilitator

Mr. Takashi Fukushima (President, Sustainability Accounting Co., Ltd.)
Participants from Sumitomo Electric

Masatoshi Nakata (General Manager, Human Resources Department,
HR & Administration Division),

Factory tour

Exchange ofOpinions

Theme

N o b u y a O o o k a (General Manager, Safety & Environment Department),
Satoshi Maegawa (General Manager, Procurement Division),
Masahito Kasuga (Manager, CSR Promotion Oﬃce, HR & Administration Division)Commitment to the new CSR priority themes

Setting of the priority themes
Kasuga: Based on the new mid-term
management plan VISION 2017, which
was formulated in May 2013, we havereviewed the ﬁve CSR core categories toenhance the integration of CSR activities
with business activities. The new ﬁvecore categories are Products & Services, Supply Chain,
Human Resources, Environmental Preservation and Social

scale, the number of the overseas personnel appointed asexecutives was not large enough. To improve this situation,
we established the Global Executives System in April 2014.
We then set up a grade called

GL (global leader)andappointed 24 oﬃcers and equivalents from overseas
subsidiaries other than those of listed companies. In terms ofpromotion of female workers, our Japanese sites lag behind
overseas ones. We focus on employment of excellent female
workers in the recruitment of new employees for main career
track in Japan.

Contribution. Products & Services is included to highlight ourAdachi: The companies that promotesocial contribution through the main business. For each of therecruitment of women can be divided

categories, a priority theme is selected (see P15). The priority

into those which have a deﬁnite purpose

themes for Human Resources, Supply Chain andand those which just follow otherEnvironmental Preservation are promotion of diversity,

companies to keep pace with the trend

promotion of CSR procurement and prevention of globalof the times. I think that the answer towarming, respectively.

the question why a company has to increase female workers
depends on the type of the business.

Promotion of diversity

Kozuma: The issues underlying the promotion of diversity arevery complicated. In addition to constraints in companies,

Nakata: We adopted the Global HRM

many factors generated by social systems prevent eﬀective

Policy as the Group's common policy touse of female workers. In a company with many overseas

be applied worldwide in 2011. While ourfacilities like Sumitomo Electric, I assume that working

business has been promoted on a global

conditions are diﬀerent between Group companies in many

SEI CSR Report 2014

23Basis for Management
Business Outline
Group's CSR Activities
Governance
CoreCategoryminorities totally diﬀers from country to country, is yourcompany handling it on a global scale?

Products &Services

aspects. While the situation concerning women andPrevention of global warming
Supply Chain

Oooka: Our target for prevention ofemissions by 5% in ﬁscal 2017 from theon a global scale to obtain data, andﬁscal 2012 level. In the action planworked to share information between

established to meet this aggressive

diﬀerent companies beyond nationaltarget, we aim to reduce energy

borders and cultures. The Sumitomo

consumption per unit of sales by 20% in 5 years. While ourElectric Group will enhance the human resource recruitment

energy saving eﬀorts have consisted mainly ofsystem to promote diversity.

equipment-related initiatives such as introduction of energy

Kozuma: In EU, it is said that diversity

saving devices, we now recognize that issues related toshould start from executives. Japan lags

productivity such as poor quality and equipment failure are

far behind in diversity of executives.

all linked with energy saving. We plan to promote activities in

Promotion of it is crucial to promote

cooperation of various sections while sharing this recognition

diversity of the whole company. How iswith them.

the situation in your overseas Groupcompanies?

Adachi: To meet the target of increasing sales fromapproximately 2,200 billion yen in ﬁscal 2012 to 3,000 billion
yen in ﬁscal 2017, you need to increase sales by 40%. In thislocal staﬀ to executives in overseas companies more actively.

context, the target of reducing total emissions by 5% seems

A major principle in our global policy is that we provide

to be too aggressive. I wonder that the ﬁnancial prospects

workplaces where all the employees can work actively

may be inconsistent with the non-ﬁnancial prospects.

SocialContribution

Nakata: We have to encourage the promotion of appointing

regardless of race or gender. We will broadly and strongly

EnvironmentalPreservation

global warming is the reduction of CO 2of male and female workers in our Group

Human
Resources

Nakata: We have surveyed the number

publicize this as a solid policy of our Group in humanresource management.

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STAKEHOLDERDIALOGUE

Oooka: An aggressive target is necessary

Adachi: As the Sumitomo Electric Groupto remind our divisions of the need tohas diversiﬁed its business and engages

eliminate energy loss. Just trying to

mainly in B-to-B activities, the supply

balance out the manufacturing areas

chain is not visible from outside. Iwith low energy eﬃciency is not enough.

recommend that purchased goods be

We aim to make them aware of this fact

clariﬁed ﬁrst and eﬀorts related to theto be thoroughly committed to energy saving activities.

procurement of them be presented together with any
problems in the upstream of the supply chain.

Adachi: I understand energy consumption per unit of sale isgreatly diﬀerent between business segments at present.

Maegawa: It would be ideal if ourThere must be diﬀerences between overseas factories as

Procurement Division could develop awell. It will be convincing if you also have a plan to change

database with such information collectedbusiness segments or improve overseas production sites within a cross-sectional manner. So far, we

low energy eﬃciency to raise their energy eﬃciency to the

only support divisions and operatinglevel of the mother factories in Japan.

companies in aiming at the same target
on a speciﬁc subject when promoting initiatives on a division

Kozuma: It is preferred to encourage
related suppliers to take such measures
at a similar pace. In addition, I would liketo point out that expansion of the salesor operating company basis. I hope that we can eventually
collect basic data that are common among the divisions andanalyze them at the Procurement Division to prepare acomprehensive report and give feedback.

of existing environmentally conscious
products that can help reduce CO 2
emissions may be more eﬀective in contributing to preventionof global warming.
Oooka: We do have environmentally conscious products that
can help customers save energy, reduce waste and improve
productivity. Many of our products are parts, and we aremaking eﬀorts to raise the ratio of sales of suchenvironmentally conscious products. Nevertheless, we havecalculated the contribution to reduction of CO 2 emissions
only on some of our products.
Kozuma: Sales and reduction targets should be set even if

Overall CSR activities
Kozuma: I can see that cross-sectional operations areincreasing rapidly in addition to independent duties of eachsection. You will be facing such challenges as how these
operations should be managed, who should control themand how they should be coordinated.
Adachi: I believe such issues on CSR governance are common
challenges for Japanese companies.

they are rough ones. I think your factories, which have lots ofKasuga: The CSR Committee chaired by the oﬃcer in charge

basic technologies, are ﬁlled with hope.

of human resources and administration holds a meeting twice

Oooka: Thank you. There are still diﬀerences in awareness insome divisions. We will focus on the areas where the eﬀorts
have been insuﬃcient in order to achieve results.

a year, which has been joined by staﬀ from each division
since the last meeting. Participation of divisions means
participation of all of the organizations under them, whether
in Japan or other countries. Our future challenge will be how
we involve the whole Group and all employees in our CSR

Promotion of CSR procurement

activities.

Maegawa: We request suppliers tocomply with our CSR procurement
guidelines. As we did not know how
much the guidelines were actuallyfollowed, we surveyed suppliers todetermine the situation in ﬁscal 2013.
While we conducted a questionnaire survey of 122 main
suppliers under the control of our Procurement Division, weplan to expand the scope to cover around 900 suppliers withwhich we have continuous business each month in ﬁscal
2014.

The dialogue was very fruitful withadvice from the two experts
concerning three of the CSR priority
themes established last year basedon VISION 2017. We will make useof the advice about the challenges
for our CSR activities. At the sametime, we will discuss how we should

Yoshitomo Kasui
Chair ofthe CSR Committee
Managing Director

Kozuma: I suggest you consider the objective of such surveys

address the cross-sectional

as well as the objective of supply chain management andoperations, which are increasing as our businessreview the results to improve the accuracy of the survey. It isactivities are globalized, in the approach to the CSR

important to continue questionnaire surveys and feed backgovernance of the whole Group. This is a common

the results into the current supply chain management tochallenge for all of the themes.

constantly check the progress.

SEI CSR Report 201425

After the Stakeholder Dialogue