CSR Report 2015

NEC Networks & System Integration Corporation

Corporate Profile (as of March 31, 2015)
Name

NEC Networks & System Integration Corporation

Head office

Iidabashi First Tower 2-6-1 Koraku, Bunkyo-ku, Tokyo

Established

December 1, 1953 (Registered as a stock company on November 26, 1953)

Capital¥13,1 billion

Net sales¥292.2 billion (consolidated)

Employees

7,260 (consolidated)

URL

http://www.nesic.co.jp/

Subsidiaries in Japan

Overseas subsidiaries

NEC Magnus Communications, Ltd.

NESIC BRASIL S/A

NICHIWA Co.

NESIC (Thailand) Ltd.

NEC Net Innovation, Ltd.

—Yangon branch

Q&A Corporation

NESIC PHILIPPINES, INC.

NEC Networks & System Integration Services, Ltd.

NESIC (Guangzhou) Co., Ltd./China
Networks & System Integration Saudi Arabia Co.Ltd.

CSR Report 2015
Editorial Policy

Coverage of this Report

Until the last fiscal year, NEC Networks & System Integration Corporation●

had issued the Environmental Report to report the environmental con-

Organizations covered
NEC Networks & System Integration Corporation, anda part of its group companies in Japan and overseas

servation-related activities its Group had been engaged in. At the sametime, we also developed a structure to promote CSR activities while reorganizing and launching various CSR initiatives in line with our corporate●

April 2014 to March 2015
(Some data outside of this period are included.)slogan “Re-designing Your Communication,” which was established incelebration of our 60th anniversary in December 2013. Starting from thisFY 2015, these initiatives are organized and disclosed in the form of a
CSR Report.

●

and “Solar Power Generation Systems,” under the theme of seeking solutions to social issues through business activities. The CSR Activities Report
ment, customers, local communities, employees, governance and com-●addressed in the future.
The purpose of this CSR report is to clearly communicate our CSR
activities to all our stakeholders. We would appreciate your opinions andcomments as guidance for our future activities.
* FY 20XX refers to the fiscal year started April 1, 20XX and ended March 31 the next
year.

2

IssuedOctober 2015

pliance. The Stakeholder Dialogue, to which an external professional was
invited to participate, reviews our CSR activities and clarifies the tasks to be

Guidelines used as reference
GRI Sustainability Reporting Guidelines G3, G4
Environmental Reporting Guidelines (2012 version) by
the Ministry of the Environment
ISO 26000 (Guidance on social responsibility)

This CSR Report 2015 features our initiatives of the “EmpoweredOffice”

section describes our activities according to six key themes: the environ-

Period●Contact
CSR Promotion & Corporate Communications
Division, NEC Networks & System Integration
Corporation
TEL：03-6699-7004
URL：http://www.nesic.co.jp/contact/

NEC Networks &System Integration Corporation

CONTENTSCSR Report 2015
Corporate Profile ................................................................... 2
Top Commitment ................................................................... 4
Business Outline .................................................................... 6

Feature Topic 1

EmpoweredOffice............................................ 8
Feature Topic 2

Solar Power Generation
System...................................................................................... 10
CSR Activities Report
Partnership with the Earth.............................................................. 12
Partnership with Customers.......................................................... 18
Partnership with Local Communities......................................... 20
Partnership with Employees.......................................................... 24
Governance/Compliance................................................................ 28

Stakeholder Dialogue....................................................... 31

Data (Financial Highlights)......................................... 33

3

Top Commitment

In view of our future business direction and social
expectations, we will take steady steps towardfinding solutions to various social issues.
● Our basic CSR policy

Since it was founded in 1953 as a company engaged inbuilding and installing communications infrastructure, NEC
Networks & Systems Integration Corporation has expanded
its scope of business to cover the fields of system integration and maintenance of corporate networks, as well as related services such as operation and outsourcing.
Today, we are engaged in the development, operationand maintenance of many systems that support social infrastructure, such as telecommunications networks for mobile
phones, etc., fire-fighting network systems/disaster-prevention radio systems, and mega solar systems, while proposing
new styles of working in various workplaces based on our
office innovation concept “EmpoweredOffice,” and providing solutions that help improve productivity or enable a better work-life balance. Further, aiming to become a network
system integrator capable of comprehensively providing total
support from consulting to installation and the operation of
ICT systems, we are enhancing our service businesses while
4

expanding our infrastructure businesses.
We, in celebrating its 60th anniversary in December
2013, selected “Re-designing your communication” as its
corporate slogan after inviting ideas from its employees. Thisslogan reflects our aim at a society where lively communications are ensured, as well as our willingness to help enhancethe value of our customers and contribute to the realizationof a prosperous society by “Re-designing Your Communications” from the customer’s perspective, while developing
safe, secure and reliable networks.
For us, CSR means seeking solutions to various social
issues in our overall business activities based on the spiritof this corporate slogan and contributing to the sustainable
development of the world and society.

in the behavior of all our employees and organizations.

● People and organizational culture

For NEC Networks & Systems Integration Corporation, acompany operating as a system and service integrator, themost important management resource is people.
To allow each person who supports our business operation to be continuously involved in the attempt to create
greater value, we have established various measures andsystems to enhance the human resources development andhealth management of our employees, as well as to support
them in childbirth, childcare, and nursing care so that they
are able to remain employed.
I believe it is also important to create an organization
where more female managers are appointed and many aged
or foreign employees can play active roles, and to create anenvironment where members can work safely. Based on respect for human rights, we are committed to encouraging
and raising the awareness of all members of our organizations, including the management, to promote the creation ofsuch environments and workplaces.

● Launching various initiatives● Foundation of trust

Meanwhile, in fulfilling our contribution to society, it is crucial
to establish a stable foundation to obtain the trust from all
stakeholders, and therefore the entire Group places the highest priority on compliance in its business performance.
All our members, from the management to regular employees, are required to participate in several compliancerelated training programs provided on a periodic basis eachyear. In these training programs, the contents of the NEC
Networks & System Integration Group’s code of conduct are
confirmed, and my policy of “top priority on compliance inbusiness performance” is repeatedly explained, to ensure
they are thoroughly understood. Moreover, we conduct agroupwide survey on compliance every year as an opportunity for employees to check their own behavior and foreach organization to discover its culture and enhance its risk
management. Through these measures and by following the“PDCA cycle” to continuously enhance and review the relevant initiatives, we aim to have compliance deeply ingrained

Besides the initiatives described above, we are promoting awide range of activities for diverse purposes, such as reducing burdens on the environment, contributing to local communities, supporting the development of youth, improving
safety and quality, and ensuring information security.
We must also extend our Group’s CSR initiatives to ouroverseas businesses, on which we are now placing particularemphasis. While paying attention to the situations unique toeach country or region, we will launch measures to protect
people and the environment.
In Japan, we must also pay attention to the entire supply chain and cooperate with all our business partners, so
as to promote CSR initiatives from the same standpoint. By
doing so, our activities will be continuously improved and thetargets and improvement processes can be shared.

● In conclusion

To ensure these measures and activities meet the expectations of society, I think evaluation from a third party’s viewpoint is important. Through promoting active communications both inside and outside the company including therelease of information, we will gather opinions from outside
the company and reflect them in various measures and activities.
And, in view of our future business direction and social expectations, we will identify the critical issues we must
tackle and take steady steps toward finding solutions to suchsocial issues.

President
NEC Networks & System
Integration Corporation
Masao Wada

5

Business Outline
Taking advantage of the platforms it has established in the three key fields of construction,
ICT, and support services, NEC Networks & System Integration Corporation offers comprehensive solutions that help its customers improve their business performance or solve theirproblems, in all stages from consulting to system integration, installation, operation andmaintenance of systems, and even through BPO (business process outsourcing).

Ocean
Installing submarine cables
that support communications
across national borders anddeveloping submarine seismometers using submarine
cablesEnvironment, energy-saving
Presenting comprehensive suggestions
ranging from visualization of electricity
usage to specific measures

Shops, public facilities

Mobile base stations
Encompassing the range frombase stations to core networks tosupport daily communications withsmartphones and mobile phones

Providing variety of services in a integrated
manner including installation of Wi-Fi
networks for the convenience of users
and integration of information distribution
systems and video monitoring systems forsafety and security as well as value-added
services, operation, maintenance of thesystems and network provision

Broadcasting
Developing, operating and providing
maintenance for transmission facilities,
relay stations, studios, etc., of digital TV
broadcasting, as well as next-generation
broadcasting such as 4K and 8K

Comprehensive technical center
Besides logistics functions, providing
comprehensive technical services fromtechnical evaluation and SI to maintenanceand repair

6

Transportation

OfficeProviding systems to make public transportation
more convenient and comfortable, including thosefor speedy communication of information on theoperational status of roads and railways including
any accidents, and for guiding airplanes at airports

Suggesting ideas for office reform tosolve diverse problems and enhancethe value of work, and measures tosave energy use in officesOur Business Segment
Enterprises Networks

Space
Supporting communications with various
satellites or probes, as well as their operation and traffic control

Municipal networks
Providing services to support convenience and safety
in daily life, such as observing residents or assisting
their shopping while proposing ideas to vitalize the local
communities through providing tourism information

We offer comprehensive ICT services, fromdeveloping networks and IT platforms,
which constitute the infrastructure for thebusiness activities of our customers, toenhancing security and internal control,
and also designing the office environment,
taking into consideration the work
style of our customers. Also, throughsupport services such as operation andmaintenance and outsourcing services
based on our data centers, we support
customers in enhancing their management
capabilities and expanding theirbusinesses.

Carrier Networks
We design networks (fixed and mobile) of
telecommunications carriers, which require
high reliability and efficient operation, anddevelop systems for the verification, etc.,
of networks, while providing operation andmaintenance services using our nationwide
support network. We also offer system
integration services for ICT infrastructure
for large-scale, broad carrier grade
networks and data centers, as well as theoperation and monitoring services thereof.

Contact center
Integrated operation
center offering one-stophigh-quality services 24hours a day, 365 daysa yearSocial Infrastructure

Cloud
Disaster prevention radio systems
Widely transmitting information on earthquakes, tsunamis, typhoons and otherdisasters in times of emergency to support
the safety and security of residents

Reducing initial costs,
easing the burden ofsystem operation, andsolving security problems

We offer a wide range of services fromsystem integration to the installation,
operation and monitoring of the ICT
infrastructure of central and local
governments and social infrastructure
operators (broadcasting, electricity,transportation, etc.), such as official
disaster prevention radio systems, local
community networks, traffic information
networks, and next-generation
broadcasting systems.

Support and service
infrastructure

Fire-fighting & Ambulance
Developing systems for commandor radio networks to enable speedy
response to 119 emergency calls,
while providing a multiple-language
call center service to respond to
emergency calls in six languages

We have established structures to offer
high-quality support services for customers,
including operation centers in charge of
integrated, seamless handling of help
desk operations as well as management,
monitoring and maintenance services,
the comprehensive technical center
equipped with logistics functions available
24 hours a day, 365 days a year, providing
comprehensive technical services fromtechnical evaluation and SI to maintenanceand repair, and the data center serving as
the foundation for outsourcing services.

7

Feature Topic 1 EmpoweredOfficeIntegration of ICT with office space will
enhance your corporate value.

Solution to enhance corporate power
Since 2007, NEC Networks & System Integration Corporation has proposed the “EmpoweredOffice” concept asa solution that promotes innovation in office working styleby integrating information and communications technology(ICT) with office space.
By effectively utilizing the three main elements relevant
to office work (communication, information, and facilities),
EmpoweredOffice brings reform in work processes and renewal of the office environment. While aiming at the empowerment of each employee to improve productivity andefficiency, it enables the establishment of an eco-office excellent in energy-saving, resource-saving performance, or
enhancement of the business continuity plan (BCP). In theShowing the results of in-house
In October 2010, when it moved its head office to
Iidabashi, NEC Networks & System Integration Corporation
introduced the EmpoweredOffice to its entire head office todemonstrate office innovation by itself, and has promoted
improved work efficiency and work style reform and verified
the effects thereof. Starting from 2012, EmpoweredOfficehas been introduced to its regional offices throughout
Japan, where innovation has been promoted in view of theunique characteristics of each market or regional office. The

EmpoweredOffice business, we take care of all processes
from consulting and office design to system development,
construction and operation, with the aim of enhancing thecorporate value of our customers.

Work style innovation

Improved productivity and efficiency

Office streamlining

Reduced floor space and cost

Reduction of environmental burdens

Energy-saving, resource-saving

BCP enhancement

Safe office capable of responding
to disasters

message

Kyushu Regional
OfficeIts office innovation under the theme of “a quick
decision-making office withempowered individuals” wasawarded the Creative Prizein the 27th Kyushu and Okinawa New Office Awards.

From customers

Akihiko Chigono President, NHK Media Technology, Inc.
In 2014, when we celebrated our 30th anniversary, we renovated our head office, introducing the concept of EmpoweredOffice. The concept target was to do “better jobs,” byimproving worker-friendliness, accumulating and sharing information and knowledge, andcreating new values. Under this concept, various spaces were developed and created,such as the collaboration area and lounge where diverse people communicate and freely
exchange ideas, and the reception area equipped with public relations functions suitable
for an ICT media company. The wireless LAN for the utilization of mobile devices has
contributed substantially to paperless and efficient operations. We will continue to verify
and improve our EmpoweredOffice.

8

Proposing office innovation for customers
at demonstration-type showrooms

Office Area
Presenting four work scenes
in which the latest ICT and office equipment are utilizedpractice
results of this office innovation are shown to visitors to each

EmpoweredOffice Center

office, in the hope of being of some help to our customers’
office innovation.
Besides making its EmpoweredOffice-introducedhead office open to visitors, we have also set demonstration-

Experiencing work styles

type showrooms “EmpoweredOffice Center (EOC)”, where
customers can experience more advanced office spaces
and have in-depth discussions about their own work style

Experiencing
solutions

Experiencing technologies

innovation. The EOC consists of the three areas of Office
Area, Laboratory, and Theater, enabling us to discuss witheach customer to find ideas for office innovation in the area
most suitable for the customer’s demands and problems.

TheaterLaboratory

Providing a realistic experience of future offices using
projection mapping techniques, helping customers tofind new ideas

Enabling customers to find thework style necessary for theiroffice innovation, and to experience the solution to realize it

message

From expert
Associate Prof., Dept. of Industrial Engineering and Management, Graduate

Dai Senoo School of Decision Science and Technology, Tokyo Institute of Technology

I think NEC Networks & System Integration Corporation’s EmpoweredOffice encourages individuals to work in a flexible manner based on (1) discretion (deciding the
purpose and means of work by themselves), (2) searching (searching for new options),and (3) improvisation (composing impromptu activities using resources available atthat time, at that place), and creates a space where innovative results can be easily
achieved. Because the integration of ICT with office space makes the work of eachindividual visible, members become interested in the work of others, leading to thesharing of information and enhanced teamwork to take on challenges. These effects
on groups can also be brought about by EmpoweredOffice.

9

Feature Topic 2 Solar Power Generation System

High-efficiency solar power generation
system contributes to the utilization ofnatural energy.

In response to growing public concern about environmental issues in recent years, solar power generation has been
attracting a lot of attention as a clean and renewable natural energy source.
NEC Networks & System Integration Corporation, by making full use of the facility engineering capabilities it has developed over a long time, offers optimal and highly efficient solar power generation systems that satisfy the needs ofcustomers, contributing to the utilization of natural energy.

Comprehensive service from consulting to operation and maintenance
Today, many companies have entered into the solar power business, andmany mega solar power plants with a capacity of 1,000 kW or more havebeen built. NEC Networks & System Integration Corporation, based on its
experience of installing many solar power systems on both small and large
scales, offers comprehensive services from consulting for system introduction, design and construction, to operation, monitoring and maintenanceafter installation.

Junction box with a remote monitoring device

Consulting for introduction

Design, procurement, construction

Estimating the power to be generated
for 20 years after installation using
computer simulation to give advice on
income and expenditure

Based on the techniques and know-how
developed in building infrastructure, offering optimal design that satisfies diverse
needs and high-quality construction

message

Operation, monitoring, maintenance
The remote monitoring system identifies
the location of faults in each solar panel,and maintenance is thoroughly performed
using the nationwide maintenance network for communications systems.

From customers

Daisuke Yamanoi President, Taiko Co., Ltd.
Our company used to be engaged in quarrying, and our mega solar plant is built at a former quarrysite. When we were thinking about the effective utilization of this former quarry, the building of amega solar power plant was recommended by NEC Networks & System Integration Corporation.
By combining our experience in the quarry business and your system development capabilities, wewere able to smoothly complete the construction of the plant. Now, a year after installation, the plantis steadily generating electricity. We are glad to hear many visitors to our plant saying, “It’s a beautiful
solar power plant.” I’m sure this success is largely due to your technological support.

10Fault location identification and remote monitoring
NEC Networks & System Integration Corporation adopts the
SOKODES pulse detection system of System JD Co., Ltd.
to monitor its solar power generation system. This system
has enabled detection of the location of faults in each panel,
which had been difficult with the conventional monitoring
system, and has also enabled remote-controlled monitoring.
Furthermore, by employing the integrated photovoltaic

Customer

Checking
status/record
via the cloud(PV) monitoring system, which we offer in our application
service provider (ASP) service, for monitoring the statusof power generation and generation facilities, the amountof electricity generated and the status of operation ofseveral power plants can be easily checked online, or withsmartphones or tablets, and the accumulated data can beeffectively used.

Integrated photovoltaic (PV) monitoring system

Manufacturers
involved withcustomers

PV monitoring center● Reporting troubles

repairEscalation● Escalation to manufacturers● Monitoring progress● Reporting progress● Providing various information
through the Web

2 Request repair

Operator

Solar panel
manufacturer● Responding to requests for1 Report trouble

3 Monthly report

Collaboration

Power conditioner
manufacturer

Communication

Solar panels

On-sitemaintenance

Licensed chief
electricity engineer

Monitoringdata storage

Reliable maintenance system to ensure quality
With monitoring 24 hours a day, 365 days a year from“nTOC,”* NEC Networks & System Integration Corporation’s network operation center for integrated network support, and on-site maintenance service available at 300 locations throughout Japan, we help our customers reduce their
management costs and maintain the quality of their facilities
over a long time.

Analysis of the status ofeach panel
Remote monitoring 24 hours
a day, 365 days a year
Maintenance network covering all of Japan

監視サーバ
Reduced management
cost
Long-term facility quality
maintained* nTOC is an integrated operation center offered by NEC Networks & System Integration Corporation.

11

Partnership with the EarthEnvironmental Management Systems
Environmental Policy
Basic Principle
As a system integrator for the information society, the NEC Networks & System Integration Corporation Group contributes to therealization of an affluent society while aiming to be a company in harmony with nature where all persons working at the Company
participate in earth-friendly business activities.

Action Guidelines
At the NEC Networks & System Integration Corporation Group, all persons working at the Company promote the following environmental conservation activities, upholding harmony with the environment as one of its key management issues.
(1) Through a whole range of business activities, products, and services, based on awareness of their environmental impact, we work to improvethe environment as far as possible both technologically and economically.
(2) Along with the prevention of environmental pollution, we aim for continuous improvement.
(3) We manage activities, products and services that may affect the environment with strict observance of environment-related laws and regulations, agreements, and other relevant requirements.
(4) In deploying management activities based on environmental policies, we set annual goals and targets, promoting resource and energy saving
at all stages of our activities, products, and services, along with the reduction of waste products and biodiversity conservation, among otherthings. We also execute and improve the measures to achieve them as part of our environmental management program.
(5) Along with documenting environmental policies to keep all persons working at the Company apprised, we implement and maintain environmental management systems.
(6) Along with broadly disclosing our environmental policies, we contribute to our local communities.

Partnership with the EarthEnvironmental management structure
Seeing environmental management as one of its most important issues, NEC Networks & System Integration Corporation has beenstrengthening its mechanisms and structure to promote environmental management. Specifically, through the Central Committee for Environmental Management (Chairperson: Officer in charge of the environment), we discuss and determine the environmental strategies andpolicies for the entire company and follow up on major issues. Furthermore, as a subordinate organization, we also hold environmental
promoters’ meetings every two months, chaired by the General Manager of the CSR Promotion & Corporate Communications Division(person in charge of environmental management systems), for the purpose of promoting environmental management activities.
Environmental
Management
Organizational Chart(as of April 1, 2015)

Internal auditors

Marketing & Sales Development Unit
Environmental management promotion
subcommittee

Higashinihon Regional Division
Hokkaido Office/Tohoku OfficeEnvironmental management promotion
subcommittee

Kanto-Koshinetsu Branch

Kanto Office/Kanagawa Office/Niigata OfficeEnvironmental management promotion
subcommittee

Nakanihon Regional Division

Chubu Office/Shizuoka Office/Hokuriku OfficeEnvironmental management promotion
subcommittee

Kansai Branch

Keiji Office/Kobe OfficeEnvironmental management promotion
subcommittee

Nishinihon Regional Division

Chugoku Office/Shikoku Office/Kyushu OfficeEnvironmental management promotion
subcommittee

12

President

Management

Meetings

Central Committee for Environmental Management
Chairperson
Vicechairperson

Officer in charge of the environment
Environmental management supervisor

Environmental promoters’ meeting

Person in charge of environmental
management systems

Enterprise Solutions
Operations Unit

Environmental management
promotion subcommittee

Head Office area

Environmental management
promotion subcommittee

Mita area

Environmental management
promotion subcommittee

Carrier Solutions
Operations Unit

Environmental management
promotion subcommittee

Head Office area

Environmental management
promotion subcommittee

Tamagawa area

Environmental management
promotion subcommittee

Abiko area

Environmental management
promotion subcommittee

Members: General Manager of Administration Division, Deputy
General Manager of Procurement Division and General
Manager of International Business Operations Division;
General Manager of Marketing & Sales Planning Office,Marketing & Sales Development Unit; and Managers of theBusiness Planning Office of each Business Operations Unit
Organizer: General Manager of the CSR Promotion & Corporate Communications Division

Chairperson: General Manager of the CSR Promotion & Corporate Communications Division
Members: Environmental promoter of each management site
*Person in charge of practical operations at each department
Secretariat: Environmental and Social Contribution Group, CSR Promotion & Corporate
Communications Division

Public Infrastructures
Solutions Operations Unit

Environmental management
promotion subcommittee

Head Office area

Environmental management
promotion subcommittee

Fuchu area

Environmental management
promotion subcommittee

Tamagawa area

Environmental management
promotion subcommittee

Technical Services
Operations Unit

Environmental management
promotion subcommittee

Head Office area

Environmental management
promotion subcommittee

MSC area

Environmental management
promotion subcommittee

Tatsumi area

Environmental management
promotion subcommittee

Corporate staff

Environmental management
promotion subcommittee

Procurement Division

Environmental management
promotion subcommittee

International Business
Operations Division

Environmental management
promotion subcommittee

NEC Magnus
Communications

Environmental management
promotion subcommittee

ISO 14001 certification status
NEC Networks & System Integration Corporation obtained
ISO 14001 certification for its environmental management
system on July 28, 1999. In FY 2014, the company, including NEC Magnus Communications., Ltd., underwent an extended audit for ISO 14001 renewal between October 21
and October 30, and its environmental management system
was judged as continuing to be effective based on the ISO
14001:2004 Standard, resulting in acquisition of the certification for the entire NEC Networks & System Integration Corporation Group.

ISO 14001 registration certificate (Japanese)

Internal audits
In FY 2014, NEC Networks & System Integration Corporation implemented internal audits on 28 management sites
from July 25 to September 15. The results are shown below.
The results of the internal audits were reported to the environmental management supervisor and used to improve themanagement system.
Satisfactory cases

Number of audited
management sites 28

51 cases

Minor non-compliancecases

0 cases

Improvement
opportunities

7 casesCompliance
Placing the highest priority on compliance in its management,
NEC Networks & System Integration Corporation has developed in-house systems to ensure compliance with corporate
ethics and has implemented awareness-raising activities.
In FY 2014, we held two educational seminars on industrial waste disposal regulations. For one of these seminars, we invited an external specialist to give a lecture on the
points to be noted regarding industrial waste disposal at thetime of contract, with the aim of enhancing our awareness ofcompliance. We also conducted systematic industrial waste
management activities, including manifest management,
administrative reporting, and on-site checking of industrial
waste disposal operators.
As a result of all these activities, we recorded no incidents or accidents that could seriously affect the environment
around our offices, and no environmental law violations oradministrative guidance.
Human resources development and environmental
awareness raising
As part of our environmental education program for employees, NEC Networks & System Integration Corporation use
the company intranet to provide various educational contentssuch as general environmental education and education on industrial waste disposal regulations. In particular, for general environmental education, we have achieved a 100% participation
rate using our proprietary education system, NEC Networks& System Integration Learning Management (NLM). We alsoorganize the internal auditor training program and education
program for environmental promoters, with the aim of maintaining and improving the environmental management systems. Moreover, we encourage employees, especially those
who work in the core offices, to acquire Eco Test certification toenhance their ability to propose practical solutions to customers at the customer’s site.
FY ended March

2011

2012

2013

2014

2015

Number of employees who haveacquired Eco Test certification each year

135

77

77

50

37

Cumulative total of employees who haveacquired Eco Test certification

244

321

398

448

485

Employee’s voice (environmental promoter)
Since April 2013, I have been promoting environmental improvement activities
as the environmental promoter of Enterprise Solutions Operations Unit.
Since being appointed the promoter, I have received the ISO 14001
internal auditor training program, education on industrial waste disposal regulations, and other programs to deepen my environmental knowledge. In promoting environmental activities as a promoter, I keep in mind to communicate
to the members of our Operations Unit not only quantitative factors, such as
the reduction of carbon dioxide expressed in terms of kilograms, but also environmental perspectives relating to safety, quality, efficiency and other matters we usually pay attention to in our daily work operations. In environment
improvement activities, it is usually difficult to clearly imagine the impact ofquantitative reduction on society. But if we think about how our businesses

Koichi Kubodera

can contribute to the environment, environmental issues
become more familiar, which may consequently result innumerical reduction. For example, a teleconference systemenables us to have meetings without moving to a specificplace, and therefore to reduce not only the time and costfor travel but also the energy generated for means of transportation, such as trains or buses. Such attitude of eliminating waste is usefulin setting targets for the environmental improvement activities of our Operations Unit.
My goal now is to play an active role in many aspects as the promoter, thereby making the members of our Operations Unit feel that their daily,
casual actions support the environment improvement activities.

Manager, Quality Control Department, Business Planning Office, Enterprise Solutions Operations Unit

13

Partnership with the EarthApproach to Mitigation of Global Warming
Reducing power usage

System Integration Corporation has improved the operational

Along with the expansion of NEC Networks & System Integration Corporation’s business and staff, our power usage has
been increasing. By introducing EmpoweredOffice at branch
offices, our power usage per unit (per person) was improved
by 3% compared with the target value. We will continue toefficiency of the vehicles that we use to transport goods fromour materials storage center, with a cargo consolidation rate
improvement of 0.19 items compared to the target, and a reduction in CO2 emissions of approximately 144 tons.

promote EmpoweredOffice to the entire Company to further
reduce our power usage.
● Reducing power
usage

Partnership with the Earth

Usage per person

TargetResult

1,780

1,735

kWh

kWh

3%

Aroundimproved● Improvement of metropolitan charter freight consolidation rate
Reduction in theenvironmental impactof logistics by raising
the number of shipping
items per truck
Reduction in
CO2 emissions

TargetResult

items

items

3.00

3.19

0.19

items

improved

144 t reduced

Improving the fuel economy of company-owned
vehiclesUsing Tradable Green Certificates

NEC Networks & System Integration Corporation started introducing hybrid cars in FY 2008, and by March 2014 we
had changed 97 vehicles to hybrid cars, including fully elec-

NEC Networks & System Integration Corporation uses “Tradable Green Certificates,” which allow us to cover some of thepower used in the showroom on the 33rd floor of the headtric cars. This is 64% of our entire motor vehicle inventory(excluding vans).
Moreover, we encourage employees who are regis-

office (27,000 kWh) by generated “green” solar power. Thisequates to an annual CO2 reduction of ap-

tered as drivers of company-owned vehicles to practice ecodriving, and also encourage all employees to be fully awareof eco-driving when they drive in order to achieve the CO2
emissions reduction target set by the Kyoto Protocol. We
have also installed in-vehicle voice guidance systems to support eco-driving as well as to promote safe driving. As a result of these new systems, we are maintaining our average
fuel consumption at 15.4 km/L, above the target.
● Improving average
fuel consumption
by promoting ecodriving

TargetResult

km/ℓ

km/ℓ

15.2

15.4

0.2

km/ℓ

improved

proximately 14 tons. Moreover, we were able
to cover the power used to host our “Customer’s Fair 2015” held in February 2015 at
the exhibition center in the Tokyo International
Forum entirely by green power.

Implementing carbon offset measures
By using the J-VER Credit* scheme, NEC Networks & System Integration Corporation was able to reduce CO2 emissions in the staff canteen kitchen by 10 tons, and also theCO2 emissions due to creating our “Ecology through EmpoweredOffice” leaflet andEnvironmental Report by 2 tons.

Reducing the environmental impact of logistics
The Energy Conservation Act requires all cargo owners totake voluntary energy-saving measures. NEC Networks &* The J-VER Credit Scheme is a scheme established by the
Ministry of the Environment in which the reduction/removal ofgreenhouse gases generated by reduction projects in Japanis certified as credits.

Promoting Environmental and Energy-saving Solutions
Environmental/Energy-saving solutions
NEC Networks & System Integration Corporation proposesa range of environmental and energy-saving solutions including the “EmpoweredOffice” office innovation solution.
Through these solutions, we can help reduce CO2 emissions, alleviate the environmental impact of our customers,
and improve the global environment.
14● Promoting salesof environmentallysound products (Ecosymbol products)

TargetResult37,49039,407

items

items

105%
achievedEffective Utilization of Resources
Improving the recycling rate of industrial waste

computers, communications equipment, etc.).

NEC Networks & System Integration Corporation recycles
89% of our industrial waste by employing thermal recycling.

Promoting paperless offices by using ICT solutions● Improvement inindustrial waste
recycling rate

The digitization of printed information through the use of digital

Target94％

Result89％

5

short% fall

* Due to an increase in the amount of rubble and metal
scrapsCollection and recycling of NEC information andcommunications equipment
Certified for wide-area industrial waste product processing by the Minister of the Environment, NEC Networks &System Integration Corporation collects and recycles
NEC information and communications equipment (PCs,multifunction machines and the promotion of paperless meetings have led to a significant reduction in paper use, and NEC
Networks & System Integration Corporation was able toachieve the reduction target for FY 2014.
(Copier use per person per day reduced by 40% compared with FY
2008)● Reduction in copy
countsTargetResultcountscounts

29.1

27.2

1.9

countsimproved

Ecosystem and Biodiversity Conservation Activities
NEC Networks & System Integration Corporation’s Rice Paddy Cultivation ProjectIn FY 2012, NEC Networks & System Integration Corporation launched the Rice Paddy Cultivation Project as part ofits ecosystem and biodiversity conservation activities. The
Rice Paddy Cultivation Project aims to rejuvenate life andrecover the ecosystem of fallow rice fields in Higashitanaka,
Ishioka City, in Ibaraki Prefecture.
This project was designed for NEC Networks & System Integration Corporation Group employees and theirfamilies as a year-round hands-on nature program. The participants carry out activities from planting to threshing andecosystem research under the supervision of local experts.
(Participants in FY 2014: 481 people)

From a local supporter
The site of NEC Networks & System Integration Corporation’s Rice Paddy
Cultivation Project used to be an abandoned, fallow rice field with poor biodiversity. Now, rice paddies have been restored by human hands, withmany living organisms recovered, including some of the endangered species designated by the Ministry of the Environment. The number of species
found and the frequency of their appearance have both been steadily increasing since 2012, when this project was launched.
Because no pesticide and no chemical fertilizers are used in
the cultivation of rice paddies, habitats for the organisms positioned
at the base of the ecological pyramid have been established, resulting
in an increase in the frequency of appearance of hawks and other animals that eat such organisms. At the same time, the water source forthis area, which used to suffer contamination from fertilizers, has been purified as the rice paddies were cultivated through which water began to flow. Various
events held by NEC Networks & System Integration
Corporation on a regular basis contribute to the revitalization of the local community.
In the future, we hope to conduct research on the ecosystemof the area by introducing water quality and temperature measuringfunctions, in addition to the image processing function, for the rice
paddy monitoring system based on your IT technologies.

Tokuya Yano Representative of Geo Art Laboratory
15

Partnership with the EarthEnvironmental Accounting (Results for FY 2014)
Large classification

Middle classification

Small classification

Investments (thousand yen)

Costs (thousand yen)

Economic effect* (thousand yen)

Costs within business area

Prevention of global
warmingPrevention of global warming

140,7632,604

54,012

Effective utilization of
resources
Recycling of resources

Risk management

Upstream & downstream
costs

Design of environmentallysound productsManagement activities costs Management activities

0033,022

Recycling of resources

—

5,742

—

Costs of waste disposal—

100,562—

Pollution prevention measures

—

0

—

Compliance

—

200

—

Management of chemical
substances/waste

—

0

—

Green purchasing of products

—

300

—

Environmentally sound products

—

0

—

Personnel costs related toenvironmental activities
Maintenance of ISO certification,
environmental audits—

51,645

—

—

6,420

—

Human resources development—

13,755—

Research & development
costs

Research & development

Research & development

—

0

—

Social activities costs

Social activities

Nature conservation

—

0

—

Contribution to society—

44,840—Information disclosure

—

2,130

—

Other

—

8

—

140,763

228,206

87,034

Costs of environmental
damage, etc.

Partnership with the Earth

Effective utilization of resources

Other

Total

* Economic effect: potential economic effect obtained by converting the amount of environmental impact reduced into monetary value

Environmental Impact (Material Balance)
Electricity: Power consumed at offices / Paper: Copy paper used at offices / Chemical substances: Lead solder, paints, adhesives, etc.

INPUT

Electricity

Heavy oil, etc.

Gasoline

Paper

Chemical substances

11,835 MWh

28 Kℓ

243 Kℓ

87,095 Kg

2,074 Kg

Industrial waste
Volume for final
Volume recycled
disposal

Recycling rate

Business activities● Planning, consulting, design, development, etc., regarding

network-based ICT (information and communication
technology) systems● Operation, monitoring, and maintenance service available

24 hours a day, 365 days a year at over 400 support/service
centers● Outsourcing-related services

CO2 emissions

OUTPUT
16

8,093 t・CO

2

Volume generated

5,825 t5,212 t

613 t

89 ％

CO2 emissions: Amount of carbon dioxide emissions resulting from use of energy such as electric power and city gas / Industrial waste:
Total amount of industrial waste / Volume recycled: Total amount of recycled industrial waste / Volume for final disposal: Total amount ofindustrial waste disposed of by incineration or landfill

Environmentally Sound Solutions
Examples of improvements achieved at NEC Networks & System Integration Corporation by introducing EmpoweredOffice
Reductions achieved

Received the 24th Nikkei New Office Award

NEC Networks & System Integration
Corporation Head OfficeVolume of CO2
emissions reduced

150t
Office costs reduced 20%

Number of people: Approx. 3,000
Head office relocated to Iidabashi in October 2010

An office environment with various features to maximize the effects
of energy-saving, resources-saving (paperless), and space saving isachieved. Regional operation bases throughout Japan have also created their offices, making effective use of their regional and business

Office floor area

36%

Power consumption

28%

Copy paper purchased25%

reducedreducedreduced60%

Copy paper purchased(for internal use)

reduced59%

Number of copiers

characteristics, thereby implementing their workstyle innovation.

reduced55%

Number of shredders
installed

reduced20%

Travel expenses

reduced● The figures are comparisons between the second half of 2009 before relocation andthat of 2010 after relocation of the head office.
● The amount of CO2 emissions reduction is a converted value based on the power

consumption and amount of purchased copy paper.

Iidabashi Head Office Live Office● The amount of CO2 emissions reduction is the cumulative amount for six months.

Paperless working● The reduction effect varies depending on the office environment, and the above

reductions are not always guaranteed.

Solar power generation system (MSC Center Building)

7.1

Expected reduction
t・CO2 per year
(Using the Tokyo Electric Power Company actual emissions factor,
announced by the Ministry of the Environment on December 9, 2013)

NEC Networks & System Integration Corporation covers part of the power used by thenTOC* with renewable energy generated by asolar energy generation system. Furthermore,with nTOC being a first action base in the caseof a large-scale disaster, it uses the power generated by that system as an emergency power
supply.
* nTOC (network Total Operation Center) is an integrated operation
center of NEC Networks & System Integration Corporation.

Solar power generation system diagram
Rooftop panels

Green room
(vending machines,
TVs, etc.)
Power
distribution
board

Junction box

Presentation room
lighting

Display monitors(plasma displays) at
nTOC: 14 unitsPower
conditioner

Offices, PCs, etc.
Foyer display

Commercial
power supply

Green remote observation system
By connecting via a mobile line the head office(Bunkyo-ku, Tokyo) and Higashitanaka, Ishioka
City in Ibaraki Prefecture, which is where the
NEC Networks & System Integration Corporation’s Rice Paddy Cultivation Project is taking
place, this system allows monitoring of the rice
growing progress through remote operation ofa 360-degree, 72x zoom camera in real time.
Moreover, this system makes use of renewableenergy through solar power and wind power
generation systems.

System overview
Rice paddy (Ishioka City, Ibaraki)
Wind power generation
Solar power generation

Power supply

High-performance camera

Battery
Monitoring at
Iidabashi Head Office

WAN router, mobile router17Partnership with Customers

Partnership with Customers

To Improve Customer Satisfaction
Policy and structure for CS promotion activities

Conducting customer surveys

To become a company that is trusted and chosen by customers through offering valuable products and services forcustomers, NEC Networks & System Integration Corporation aims to create a corporate culture in which all employees can grasp, and think and act based on, customer
expectations. To this end, upholding “obtaining customer
trust” as the key policy, we promote various activities toimprove customer satisfaction, which are implemented ateach internal organization under specific themes.
To cultivate a CS-focused atmosphere and ensure
the continuation of CS promotion activities, as well as toimprove various services related to our proposal, system integration, maintenance, operation and other activities froma CS-based perspective, we have formed the Companywide CS Promotion Committee to discuss, develop, andpromote relevant measures.
Matters decided at the Company-wide CS Promotion
Committee are communicated throughout the company via
the CS promotion committee members appointed for eachorganization, so as to be reflected in specific themes fortheir CS improvement activities.

With the aim of providing customers with higher-quality solutions and becoming the reliable, best partner for them,
NEC Networks & System Integration Corporation conducts
questionnaire surveys of customers, and promotes activities to improve customer satisfaction based on the opinions
obtained.
● Nationwide customer survey (once a year)
Evaluations and opinions of customers regarding NEC Networks & System Integration Corporation’s overall businessactivities are gathered, based on which we hold companywide discussions to identify problems and develop measures for improvement, thereby enhancing our management structure and competitiveness.
● Questionnaire survey on business operations
Evaluations of customers on the quality of NEC Networks &System Integration Corporation’s business operations, including its products and services, are gathered, based on
which we address the problems pointed out, and also reflect them in developing measures to solve the problems ofcustomers. We conduct this survey at the time of completion of a project or renewal of a contract.

CS promotion structure

CS seminars(as of April 2015)

Company-wide CS Promotion
Committee
Members are appointed by the President.
Chairperson (officer)
Vice Chairperson (officer)
Committee members (several)● Organizers (several)● Secretariat (CSR Promotion & Corporate
Communications Division)●●

Drawingup●

CS Supervising
Leaders’ Meeting

NEC Networks & System
Integration Corporation
CS Activity Policy
Setting company-wide targets
for each fiscal year based on the
Activity Policy

To enhance the CS awareness and customer-oriented mind
(CS mind) of our employees, internal training programs andseminars, as well as lecture meetings inviting external lecturers, are held on a periodic basis.

Setting CS activity targets foreach Operations Unit or Division,and conducting activities

Marketing & Sales Development Unit
• CS members • CS supervising leader • General Manager and members of the UnitEnterprise Solutions Operations Unit
• CS members • CS supervising leader • General Manager and members of the Unit

Carrier Solutions Operations Unit
• CS members • CS supervising leader • General Manager and members of the Unit

Public Infrastructures Solutions Operations Unit
• CS members • CS supervising leader • General Manager and members of the Unit

Technical Services Operations Unit
• CS members • CS supervising leader • General Manager and members of the Unit

Corporate staff

Assisting Marketing & Sales Development
Unit and other Operations Units

18

Customers“Process Quality Determines Customer Satisfaction”
Lecturer: Masaki Yamamoto, LTS, Inc.
(February 2014)
Mr. Yamamoto spoke on process quality, taking system development as an example, from the perspective of “service
science,” which scientifically analyzes invisible services forthe purpose of improving operational efficiency and gaining
customer satisfaction.

Education for employees to improve CS

CS skills contest

NEC Networks & System Integration Corporation provides
various educational programs for its employees to help
them understand diversifying customer needs and to propose to them optimal solutions.
To enhance employees’ customer-oriented mind (CSmind), we provides Web-based education using cartoons
for new employees, and group discussion-based education using the actual customer voice to find problems anddiscuss solutions to them for mid-career employees. These
educational programs are aimed at developing employees’
ability to think and act from the customers’ standpoint.
At the same time, under the belief that the basis of CS
improvement is the capability to offer system services of excellent quality that can be used by customers with ease, wehave established the Isehara Technical Center, a specialized
facility for education, training and system evaluation, wheretraining programs using advanced devices and equipment,
as well as many educational courses related to quality andsafety, are operated.

Since 1996, NEC Networks & System Integration Corporation had held the Skills Contest for Service Engineers every
year for the purpose of enhancing capabilities in services targeting mainly private enterprises. In FY 2013, the contest was
expanded to a company-wide scale as the CS Skills Contest,
aimed at enhancing the technical capabilities necessary foreach of our three key platforms of construction, ICT, and support/services, thereby improving customer satisfaction in services for all customers, including not only private companies
but also telecommunications carriers, government agencies,
and social infrastructure operators.
In FY 2014, the contest was further expanded to accept the participation of all employees, including, besides
those in engineering, staff members in the sales and administrative sections. At the final of the 2nd CS Skills Contest
in August 2014, an audience of over 1,100 gathered to see
the thrilling matches between the contestants who had won
the preliminary rounds.

Awards for CS initiatives
NEC Networks & System Integration Corporation has a system to award excellent projects, etc., chosen from among
those highly evaluated by our customers. In FY 2014, theaward was given to a project that was highly appreciatedby a customer for having supported the customer in successfully relocating its head office by satisfying its needs forenhancing business efficiency, market competitiveness, andbusiness continuity, and by keeping close communications
with the customer.

Employee’s voice (NEC Networks & System Integration Corporation 2014 CS Award winner)
Our project for the transfer of a customer’s head
office won the FY 2014 NEC Networks & System
Integration Corporation CS Award. This project had
to be completed within a period of just five months,
with the customer worried about the first transfer
of its head office. Therefore, to satisfy the expectations of the customer (for security and safety,
observance of the deadline and budget limit, andimplementation of the CRE strategy), all the project
members made concerted efforts to promote theproject in all stages from proposal to construction
and completion, paying careful attention to the following points:• Security (providing explanatory materials, process charts, etc., to alleviate the worries of
the customer and give the customer a feeling of success)• Safety (explaining the construction procedures and methods repeatedly until the customer fully understands)• Self-awareness (knowing that we are entrusted with the customer’s precious money tocarry out the project)• Courtesy (appropriate behavior as a member of society: manners, dress, language, punctuality)• Trust (communication through reporting and discussion. Disclosing all information faithfully)

Although the period allowed for the project was very short, we carefully did what we are normallyrequired to do, such as ensuring safety, assuring quality, and observing work rules. As a result,
we were able to turn the customer’s worries into expectations and appreciation with a feeling of
being in the same boat as us. I was happy to hear the customer say, “the success of this projectis precisely due to the support of NEC Networks & System Integration Corporation.” This experience reminded me of the importance of thinking and acting from the customer’s standpoint.

Kenichi Aizawa Manager, System Section, Facilities Network Department, Facilities Engineering & Services Division, Technical Services Operations Unit
19

Partnership with Local Communities

Support for Disaster-affected Areas

Partnership with Local Communities

Reconstruction activities in affected areas by
new recruits
Since 2012, as part of its continued initiative to support reconstruction of the affected areas, NEC Networks & System Integration Corporation has sent its new recruits to theaffected areas as a training program, which serves as anopportunity for new recruits to think how a company should
contribute to society and learn the basic attitudes (care forsafety, the go-and-see principle, pragmatic thinking, etc.)
required of our employees.
In this two-night program, new recruits visit two areas
stricken by the Great East Japan Earthquake; Minamisanriku
Town in Miyagi Prefecture, and Rikuzentakata City in Iwate
Prefecture, where they remove rubble, clear land, and conduct
other activities in groups, while listening to talks by the affected
people and municipal leaders. Moreover, after interacting withthe staff members stationed at Himawari (sunflower) House, aco-working space we established in Rikuzentakata City,
participants hold a group discussion on what they can dotoward the reconstruction of thearea at the end of the program.
In FY 2014, 125 new re-cruits, including those from Group affiliates, participated in
the program.
This initiative was selected as an excellent practice at
the Japan Management Association (JMA)’s KAIKA Awards
2014, an awarding system to praise and make known initiatives to develop sustainable management, organizations, andhuman resources that create social values.

Himawari (sunflower) House
Himawari House is a log-house co-working space opened
in November 2012 in Rikuzentakata City, Iwate Prefecture
for the purpose of supporting the reconstruction of the affected area, furnished with various ICT equipment.
With three staff members stationed and the ICT environment available, this facility is used for sharing and exchanging information among local residents, companies,
organizations, universities, etc., seeking partnerships with
NEC Networks & System Integration Group to create new
businesses, and matchmaking among organizations or companies, thereby supporting the reconstruction of the area.
Himawari House has been used by a total of over 6,000
people, and is greatly appreciated by the local communities.

From local partner
Since 2012, I have served as the coordinator of NEC Networks & System
Integration Corporation’s reconstruction activities by new recruits, communicating local needs and proposing/planning activities for them.
Now that four years have passed since the Great Earthquake and the rubble
left by the earthquake has been mostly removed, the work of town building
has finally started. While the housing provided for the affected people has
begun to accept residents, many new houses have been built in a rush. In
contrast to such positive trends, the local communities are suffering depopulation and workforce shortage. In the hope of being of some help toimproving this situation, I organized a program for NEC Networks & System
Integration Corporation’s new recruits in fiscal 2014, in which they participated in environmental cleaning and fishing assistance that would contribute to the reconstruction of local communities. In the fishing assistance, theparticipating new recruits struggling with fishing operations
were supported by local fishermen. I guess it was a refreshing experience for the local fishermen, who have few opportunities to meet consumers.
It is my pleasure to see new recruits grow from students tomembers of society through these activities. These activities cannot be done by a single person, but require teamwork. Because lackof teamwork may result in injuries, the team leaders and sub-leaders haveshown remarkable growth.
I hope NEC Networks & System Integration Corporation will continue thisprogram of supporting the disaster-stricken area by new recruits, by listening to the voices of local residents and responding to the reconstruction
progress of the area.

Katsuyoshi Kuriya
20

President, I-Local Co., Ltd.

Supporting Youth Development
Charity concert“South Pole Club,” a traveling class for elementary schools

Starting in FY 2014, NEC Networks & System Integration Corporation hosts a charity concert as a cooperative event for the
Bright Green Ribbon Fund, a non-profit corporation. Donations
collected at this concert are used to financially support the seniorhigh school students who were affected by
the Great East Japan Earthquake and became unable to continue going to school.

NEC Networks & System Integration Corporation is involvedin operations related to Antarctic communication networks.
Every year, one of our employees is dispatched to the National Institute of Polar Research, acting as a member of theJapanese Antarctic Research Expedition. These employees
visit elementary schools etc. in Tokyo to give fun classes, inwhich they present life in the Antarctica using movies, basedon their one-year experience of living on that continent, while
also allowing children to touch ice from Antarctica and try on
the actual cold weather gear used there.

Local food fair
As an activity available in Tokyo to support the areas affectedby the Great East Japan Earthquake, NEC Networks & System Integration Corporation hosts the Tohoku Local Food
Fair for Iwate, Miyagi and Fukushima Prefectures at our Iidabashi Head Office building. This event was recognized as an
initiative in line with the “Support by Eating” campaign promoted by the Ministry of Agriculture, Forestry and Fisheries,
and received a certificate of appreciation on March 4, 2015.

Employee’s voice (South Pole Club teacher)
I served as a member of the 51st Japanese Antarctic Research Expedition from November 2009 to March 2011 to maintain and operate
satellite receivers. Using this experience, I visit elementary schools as ateacher for the South Pole Club, an initiative of NEC Networks & System Integration Corporation to support youth development, besides
my ordinary work operations.
In the South Pole Club classes, by talking about the Antarctic environment based on my experience, an environment totally different fromJapan, I try to tell children that the world is a big place and has aspects
that are totally unfamiliar to them and different from the world theyknow, and that I want them to be interested in many things. Since
topics of interest vary depending on the ages of the children, I plan myclasses by imagining what the children would be interested in. Besides

Yoshihisa Kaneshiro

lectures, I provide children with opportunities to try on
the cold weather gear or perform experiments using
Antarctic ice. I can’t forget how the children’s eyes lit
up when they saw the ice for the first time. Children’s
impressions of the class are usually presented at theend of each class, which is a great encouragement forme in teaching for the South Pole Club.
Through living in Antarctica I have learned the importance of making
preparations and conducting operations from the standpoint of others.
Now, through the South Pole Club activities, I have reminded myself of
the importance of thinking about others.
I will continue to be involved in the South Pole Club, to provide children
with an opportunity to become interested in many things.

Public Infrastructures Solutions Operations Unit (member of the 51st Japanese Antarctic Research Expedition)

21

Partnership with Local Communities

Contributions to Local Communities
Selling “Yamadori” bread
NEC Networks & System Integration Corporation Head Office building’s staff canteen periodically allows “Yamadori,”
a welfare association for the person with disability, to sellbread to our employees during lunchtime.

Activities at regional operation sites
NEC Networks & System Integration Corporation’s regional operation sites actively conduct various environmental or social
contribution activities.
● Kansai Regional
Division● Niigata Regional
OfficePartnership with Local Communities

Once a month, branchmembers clean the areaaround the NEC Kansai
Building under the Clean
Town Campaign.

As a community cleaning
activity, office members
picked up litter and fallen
leaves on the streets
and in shrubbery in theneighborhood.

● Hokkaido Regional
Office● Shizuoka Regional
OfficeOffice members picked up
litter as a voluntary activity
to contribute to the local
community.

Office members cleaned
the Abekawa River banks.

● Chubu Regional
Office● Kyushu Regional
OfficeThe office holds the“Sawayaka Eco Club”
community cleaning
activity once every month.

Office members participatedin the “Love Earth Cleanup”
campaign hosted by
Fukuoka City and cleaned
Uminonakamichi Seaside
Park.

Employee’s voice (environmental promoter)

Cleaning in Uminonakamichi Seaside ParkIn recent years, the number of foreigners visiting Fukuoka for business or sightseeing has been rapidly increasing. If these visitors feel
unhappy to see the town or sea of Fukuoka, it may undermine theirimpression of Japan as a whole.

Minoru Sugimoto
22

To help avoid such a situation, NEC Networks & System Integration Corporation Kyushu Office participatesin the Love Earth Cleanup campaign to clean Uminonakamichi Seaside Park every June as part of our environmental conservation initiative.
This activity makes us feel that we, as individuals and acompany, are playing a certain role, however small, in not only offering
hospitality to visitors to Fukuoka but also as part of Japan’s international contribution.
All members of the Kyushu Office will continue to work for the development of the area and the happiness of the local people, which I believe
is the value of our presence here. Wishing that this beautiful Earth willcontinue to shine forever, I wish to continue this activity.

Assistant Manager, Nishinihon Systems Division, Public Infrastructures Solutions Operations Unit

Initiatives Overseas
NEC Networks & System Integration Corporation’s overseas subsidiaries

Networks & System Integration
Saudi Arabia Co.Ltd.

NESIC (GUANGZHOU)
CO., LTD./China

NESIC
PHILIPPINES, INC.
NESIC BRASIL S/A
NESIC（Thailand）Ltd.
—Yangon branch

NESIC (Thailand) Ltd.

Installing optical cables in Thailand

Contributing to communications infrastructure in Thailandtion infrastructure and public communication networks. NESIC (Thailand) has already been involved in a joint project withIn Thailand, third-generation (3G) mobile communications have
Sumitomo Corporation, etc., for establishing airport and aviabegun to spread widely, attracting active investment by teletion security infrastructure for the Department of Aviation, Mincommunications carriers. NESIC (Thailand) Ltd., NEC Networks
istry of Transport of Myanmar. Thus, the establishment of the& System Integration Corporation’s subsidiary in Thailand, was
Yangon branch office has further enabled operations deeply
founded in 1991 to undertake the installation of large switchNetworks & System Integration
耐希克（広州）有限公司
rooted in local market.
ing equipment, etc., for local
telecommunications
carriers, andSaudiArabia
Co.Ltd.
in early 2000s began to engage in developing mobile commuINC. in a project to electrify rural villages
Participating
nication networks, while having established good relationshipsNESIC PHILIPPINES,—Myanmar
Solar Power Project—with customersNESIC
over long
periods
of
time.
The
high
appreciation
BRASIL S/A
The development of electricity supply systems in Myanmarthat these experiences and capabilities received resulted in a
NESIC（Thailand）Ltd.
lies far behind that of other ASEAN nations. As of 2013,
contract from AIS (Advanced Info （YANGON
Service
Plc),
the
top
comBRANCH）
around 70% (approx. 45,000) of all villages (approx. 62,000) inmunications carrier in Thailand, for the construction of commuNESIC（Thailand）Ltd.
Myanmar were not electrified. The Japanese government annications infrastructure. Now, with a view to contributing to thenounced in 2014 a plan to electrify rural villages in Myanmar asdevelopment of communications in Thailand, NESIC (Thailand)
an ODA (Official Development Assistance) project. The goal of
and NEC Networks & System Integration Corporation are jointly
this project is to improve the living environment of the residents
engaged in installing some 26,000 km in total of optical cablesof villages with no electricity supply by introducing small-scale
to enable smooth 3G communications in the country.
hydroelectric power generationand solar power generation sysExpanding overseas operations rooted in local market
tems to promote electrification
NEC Networks & System Integration Corporation establishedof the area. NESIC (Thailand)a branch office of NESIC (Thailand) in Yangon, to make a fullparticipates in this project and Solar power generation system
fledged commitment to developing infrastructure in the Reinstalled in Shan State
has installed solar panels in Chinpublic of the Union of Myanmar, which is anticipated as a large
State and Shan State, areas that
potential market. In Myanmar, where the development of basic
are seriously unelectrified, thus
infrastructure is urgently needed as the foundation for futurecontributing to the supply of
economic growth, there are many high-potential fields relevant
electricity to local residents.
to NEC Networks & System Integration Corporation’s business
operations, such as communications systems for transporta-

Children in Myanmar

Employee’s voice (expatriate at a subsidiary)
Now NESIC (Thailans)’s business focus is on communications
infrastructure in Thailand, the EmpoweredOffice applications forJapanese companies, and communications infrastructure in
Myanmar. As investments in Thailand and its surrounding countries are becoming active, how we propose and offer appropriate solutions in a timely manner will determine whether we cansuccessfully continue our business operations in Southeast Asia.
To this end, it is crucial to ensure that all the experience, knowledge and skills are shared among the Japanese and local employees. Thus, all employees of NESIC (Thailand) will work inunity for the expansion of our overseas businesses.

Hiroaki Kaneko

NESIC（Thailand）Ltd.

23

Partnership with Employees

Creating Worker-friendly Workplaces
Respect for human rights
The NEC Networks & System Integration Corporation Groupdeclares in its Charter of Corporate Behavior that it will “respect human rights in all aspects of its corporate activities,
and never allow any discriminatory treatment, child labor, orforced labor,” and also states in its Code of Conduct, “We
respect the fundamental human rights of all people in all
aspects of our corporate activities. We will never engage inany discrimination based on race, belief, gender, age, social
status, family origin, nationality, ethnicity, religion, or disability,
or any act that may undermine the dignity of any individual.”
Based on these principles, we are engaged in activities to:Partnership with Employees

1. promote human rights enlightenment,
2. promote employment of the person with disability,
3. promote employment of the aged,
4. ensure equal employment opportunities for men andwomen,
5. support the balancing of work and family life, and6. realize an environment that allows employees to fully exercise their abilities and work actively.

Supporting diverse work styles
Based on the understanding that ensuring a good work-lifebalance is crucial to enable each of its diverse employees tofully exercise his/her abilities, NEC Networks & System Integration Corporation has established support systems paying attention to various aspects of the employees’ life, suchas work and family life, childcare, nursing care, volunteer
activities, and investment in career building.
● Balancing work and childcare
To enable employees with children to feel easy about balancing work and childcare, NEC Networks & System Integration
Corporation has developed and enhanced systems and measures to support them. Having received high recognition for its
efforts to establish a working system that allows diverse working styles of employees, enhances systems to support childcare, and creates an environment in which members feel easy
about taking childcare leave and returning towork, we have obtained “Kurumin” certification under the Act on the Advancement of
Measures to Support the Raising of NextGeneration Children.
Name: Kurumin“Kurumin” is a symbol of the certification granted to companies that have establishedan action plan in accordance with the Act on the Advancement of Measures to Support
the Raising of Next-Generation Children, and have achieved the targets thereof.

Number of users of the childcare leave system

24

FY ended March

2011

2012

2013

2014

2015

Number of users

17

20

26

29

24

● Balancing work and nursing care
NEC Networks & System Integration Corporation has developed and enhanced systems to support employees balancing work and nursing care, and communicates the systems
to employees via the intranet while hosting relevant seminars for employees.

Name: Tomonin“Tomonin” is a logo that companies committed todeveloping a workplace environment ensuring thebalancing of work and nursing care are allowed to use.

● Encouraging employees to take paid holidays
NEC Networks & System Integration Corporation encourages employees to take many paid holidays during the period
from July to September as their summer vacation, and also
sets company-wide paid holidays in August in accordancewith the collective labor agreement.
We also designate the second and third weeks ofJune and October as “Ajisai (hydrangea) vacation” and“Momiji (colored leaves) vacation,” respectively, and encourage employees to take paid holidays during these periods.
Information on these paid vacation promotion campaigns
is transmitted via the portal website of the Company to all
employees.
Paid holidays taken

2011

2012

2013

2014

2015

21.1

21.4

21.2

21.2

21.1

14.6

15.1

14.3

13.1

14.0

68．
8％ 70．
5％

67．
4％

FY ended March

Average number ofholidays granted
Average number ofholidays taken
Average acquisition rate61．
8％ 66．
4％● Voluntary career development
NEC Networks & System Integration Corporation offers opportunities for employees to develop their careers based on
their voluntary will, or to think about their own careers.
SystemInternal nameInternal job
Job posting
posting system system

Internal
free-agent
system

Self-reporting
systemOutlineAllows employees to apply based on
their free will for positions generated
along with the Company’s entry into
new business fields, or for the purposeof enhancing core businesses, etc.

Supports employees who are willing to
Job Try system develop their abilities and careers andare eager to try new jobs (segments).
Position Entry
systemAllows employees to apply for the
positions they want.

Career review

Allows employees to report their own
interests and competences regarding
their work, as well as transfer requests.
The information reported is used bytheir managers for career development
and human resources development.

Promoting diversity in management
NEC Networks & System Integration Corporation proactively promotes diversity as one of its management strategies, and has established a policy of diversity promotion as
follows:“NEC Networks & System Integration Corporation believes that allowing employees with diverse personalities tofully exercise their abilities will lead to the further enhancement of its corporate competitiveness. With the aim of responding to the diverse needs of customers and continuing
to grow as a company by adopting diverse perspectives,
each of our employees will promote diversity.”
In April 2010, we set up an organization for diversity
promotion, focusing our efforts on promoting the development of a workplace environment that allows female workers to exercise their abilities, ensuring work-life balance,and continued awareness-raising activities for the effective
utilization of diversity in business.
Moreover, every year since FY 2010, the Company has
held seminars and workshops for the management, to which
external intellectuals have been invited. Managers who participate in these seminars are expected to deepen their understanding of diversity promotion and reflect it in their daily
management activities. A total of five seminars have been
held so far, each attended by over 200 participants.
● Promoting the roles of women and their careerdevelopment
To enhance the effects of diversity in businesses, NEC
Networks & System Integration Corporation set “promoting women’s roles” as one of the pillars of its medium-term
management plan, and is working to raise the percentage ofwomen in management, expand the recruitment of women,

and promote their career development.
We also offer a training program aimed at supporting
female employees’ voluntary career development efforts, inwhich participants design their own career development,
starting with thinking about what they want themselves tobe like in order to live a satisfying work life, through deepening their understanding of themselves and discussing withother employees around them. A total of 110 women haveparticipated in this program, which was launched in 2011.
Proportion of male and female employees in FY 2014
FemaleMale

15.3 %

84.7%

Percentage of women in management
FY ended March

2011

2012

2013

2014

2015

Percentage (%)

1.0

1.2

1.5

1.8

2.3

● Employment of persons with disabilities
Based on the belief that supporting the independence ofpeople with disabilities is one of the social obligations of acompany, NEC Networks & System Integration Corporation
actively hires persons with disabilities.
As of March 31, 2015, we have 80 employees withdisabilities, accounting for 2.07% of all employees, which isabove the statutory employment rate.

Approach to raising employee satisfaction
Every year, NEC Networks & System Integration Corporation conducts an employee awareness survey to discover
their motivation status, which also aims to have employees
confirm by themselves what their highest priority is, fromamong company, work, growth, treatment/compensation,
personal relations, and quality of life.

Employee’s voice (having taken childcare leave)
I took childcare leave for about three and a half months, from the birthof my son in September 2014 to December of the same year. Because
I had always wanted to be involved in childraising, I was happy to begiven the opportunity to do so by taking the leave. Thanks to the understanding and support of my boss and colleagues, I was able to takethe leave without mishap.
During the leave period, I enjoyed taking care of my son in cooperation with my wife. Although the sense of responsibility for the life of mychild made me more nervous than I had expected and I faced several
difficulties, I felt really happy to be able to see my baby son grow day
by day.
After returning to work, I am still trying to take part in childcare as much

Shinya Yoshikawa

as possible. Because I’m in charge of bathing
my son on weekdays and therefore cannot
work overtime, I pay greater attention to mypriorities at work and schedule management
than before, so as to complete the work within
a limited period of time.
This experience of using the childcare leave system has improved myfamily life as well as my work life. I am hugely thankful to the company
for making such a system available. Children grow up so fast! I hope
many other employees will enjoy spending their precious time with theirchildren.

Assistant Manager, System Development Dept., New Solutions Promotion Division, Enterprise Solutions Operations Unit

25

Partnership with Employees

Partnership with Employees

Creating Worker-friendly Workplaces

Developing Human Resources

Initiatives to promote health

Basic approach to human resources● Prevention of health impairment due to overwork
For employees who have worked long hours, the NEC
Group has them check their own health using a Web-based
interview sheet or have an interview with an industrial physician, based on “the Comprehensive Program for the Prevention of Health Impairment Due to Overwork” by the Ministry of Health, Labour and Welfare.
Also, we select employees for compulsory follow-up
on the basis of the working hours (long hours) and healthcheck (regular checkup and metabolic syndrome examination) data, and have them consult with an industrial physician/health professional, as well as restricting work hours
among other measures.

Human resources development principle● Mental health care initiatives
NEC Networks & System Integration Corporation has
switched the focus of its mental health care measures fromtreatment to prevention, and is working accordingly to create healthy workplaces through maintaining the mental
health of its employees.
In the early stage of mental disorders, industrial physicians, public health nurses and nurses provide consultation
as initial support.
For employees returning to work after a long leave
due to a mental disorder, a “return-to-work support team” isformed by an industrial physician, a health nurse, a nurse, aworksite supervisor and the personnel department, to provide support in cooperation with their attending doctor.

Employee’s voice(workplace counselor)
I have been working as a workplace counselor
since April 2011. The workplace counseling room
is a place where employees are allowed to talkfreely about not only their problems at their workplaces but all kinds of worries such as healthproblems and family problems. We listen to delicate issues that aworker cannot tell his/her boss or even co-workers from a neutral
standpoint.
Consulters often forget about their strengths and positive aspects.
As a counselor, I always try to respect the personality of eachconsulter and be at his or her side, while listening to them talk.
The happiest moment for me is when I see my consulter, having
overcome his or her problem and regained confidence, working
actively, full of smiles, with his or her co-workers.
I will continue to make efforts to make this counseling room an
oasis for employees.

Satoru Morishima
26

Workplace Counseling Room

We develop human resources capable of contributing
to the growth of the Company, with whom each of ourcustomers and employees can be satisfied.

Education and training systems
NEC Networks & System Integration Corporation offers its
employees places and tools for human resources development, and the employees voluntarily and independently utilize them.
Human resources development strategy
Company-wide education

Departmental education(Education on management quality)(Education on business quality)● Position-based training

Training programs on leadership
cultivation, business management, etc.,
are offered for those who with certain
service years or upon promotion.

● New recruits training● Mid-career recruits training● Career design training● Business skills

Internal seminars, schooling,e-learning, correspondence courses● Other programs offered asnecessary● Network

Next-generation networks,
support for acquisition of CCNA
and other qualifications● MaintenanceNetwork security, etc.

● IT

Servers, OS, software● Installation, construction

Technical training for on-site
construction managers● Project management

Safety and quality education for new recruits
All new recruits of NEC Networks & System Integration Corporation are required to receive education on safety andquality. The field training at a simulated “worksite” in the
Isehara Technical Center, our education and training facility,
is positioned as an important educational opportunity for us,which place emphasis on “actual place, actual things, andactual situation” as our basic stance.

Support for acquisition of external qualifications

Safety & Quality Promotion CenterTo support the development of human resources necessary
for the healthy performance and growth of its businesses,
NEC Networks & System Integration Corporation financiallyassists employees who intend to acquire or have acquired
external qualifications approved by the Company, with theaim of enhancing the skills and knowledge of the workforce.

NEC Networks & System Integration Corporation has undertaken many projects of building network systems and installing communications infrastructure that serves as the foundation thereof. However, we have not yet achieved the complete
elimination of safety/quality-related accidents at construction
sites. To ensure that we will not forget the lessons we havelearned from serious accidents in the past, the Safety & Quality
Promotion Center has been established, aimed at eliminating
accidents.
By having every employee visit the Center to remember past lessons and learn what each of them should do, weare committed to eliminating safety/quality-related accidents
and enhancing the trust and confidence of its customers.

Employee’s voice (training organizer)
The ICT Education and Training Group, Personnel
Relations Division organizes educational programson techniques that support practical business operations in various fields, such as networks, servers, VoIP, and wireless communications, and we areconstantly improving these programs to make them truly useful tothe trainees. Specifically, we keep in mind to have our activities forplanning and implementing training programs include the following:● Survey on the needs and motivation of target trainees (Relating
personal interviews to the training contents)● Clear indication of learning targets and evaluation (Setting motivating targets and measuring achievements by skill check)● Encouraging participation and raising the degree of understanding through interactive teaching (Diverse ways of asking questions, group discussions, presentations, etc.)● Providing streaming materials and exercises for preparation andreview (Utilizing learning systems available for smartphones)● Survey on requests for improvement (immediately upon completion of each training)Through these activities, we are working to improve the quality of
training programs, and at the same time, we are planning to create
more flexible programs that will not be affected by work styles.

Four learning themes
1. Purpose and overview of the
Safety & Quality Promotion Center● Common understanding of the purposeof establishing the Center, safety &health policies, quality policies● Recent occurrence status of accidents
presented in graphs● News and information on events, etc.
Information on safety and quality isprovided in “Safety News” on a monthly
basis.

2. Learning from past serious accidents
To learn from past accidents that mustnever be forgotten and renew ourdetermination not to cause an accident,
the actual remnants of accidents are
exhibited and prevention measures arepresented.

3. Initiatives to eliminate accidents
Learning contents designed to encourage
self-awareness are made available toeveryone. Presentations of the images ofaccidents or near-miss accidents are alsoavailable via slides or animation.
[Learning contents]● Diagnosis of human errors that you are likely to make● Self-check of unsafe actions● Skills check, stress check, cognition function check● Safe driving attitudes/awareness check● Test on understanding of related laws and regulations

During training

4. Commitment to yourself
To demonstrate your determination not
to cause an accident, you write your“no accident” declaration and post it on
the wall, thereby raising your safety andquality awareness.
Training rooms

Noriaki Harada

Manager in charge, Personnel Relations Division

Safety and quality declaration27

Governance/ComplianceCorporate GovernanceCorporate governance system

Governance/Compliance

NEC Networks & System Integration Corporation believes
that the cornerstone of corporate governance, for sustainable improvement of its corporate value, is ensuring management soundness and transparency by establishing amanagement system that enables quick decision-making to
respond promptly to changes in the operating environment,
and by practicing timely, appropriate disclosure.
To that end, we have adopted an Audit & Supervisory
Board system and have established a corporate governancesystem in which the Board of Directors and the Audit & Supervisory Board play key roles. We have also adopted an executive officer system to clearly demarcate the supervisory function
and the business execution function. To enhance managementtransparency, we have outside directors and outside membersof the Audit & Supervisory Board and seek to achieve soundmanagement by encouraging cooperation among the Audit &Supervisory Board members, the Corporate Auditing Division,and accounting auditors.

Board of Directors and Audit & Supervisory Board
The Board of Directors is composed of 10 directors (nine men
and one woman), including two outside directors. In addition tomaintaining the number of directors at an optimum level for quick
decision making, NEC Networks & System Integration Corporation has reduced the terms of directors to one year in order toclarify the management responsibilities of the directors, thereby
strengthening its management structure.

The Audit & Supervisory Board consists of five corporate
auditors, including three outside auditors. It decides audit policies, and reports on the status of audits performed by each auditor. Members of the Audit & Supervisory Board attend Boardof Directors’ meetings and other important meetings, examine
significant documents related to final decisions, and listen to directors and employees on the performance of their duties, thus
contributing to a system for sufficiently scrutinizing directors’
performance of their duties.
* As of June 23, 2015
* Two outside directors and two outside members of the Audit & Supervisory Board are notified to
the Tokyo Stock Exchange as independent officers.

Executive Committee, and Business Execution Committee
Based on the executive officer system, NEC Networks & System Integration Corporation formed the Executive Committee
consisting of mainly executive officers at the senior vice president level and higher and Audit & Supervisory Board members, to discuss key management and operating issues, andalso set up the Business Execution Committee, to monitor
the progress of business execution and report on significant
matters, thereby enhancing its management functions.

Corporate Auditing Division
The Corporate Auditing Division has been established as aninternal audit unit independent from the business execution
divisions. It examines through internal audits whether business execution is being conducted legally and properly according to the relevant laws, regulations and Company rules.

Corporate Governance System
General Meeting of Shareholder
Elect/Dismiss

Elect/Dismiss

Elect/Dismiss

Management/
Supervision
Board of Directors(Directors)

Board of Corporate Auditors(Corporate Auditors)

Audit

Supervise

Audit

Business Execution
Executive Committee(Executive Officers)

Cooperate

Business Execution Committee
Management Quality Improvement Committee

Corporate Staff/Marketing & Sales andBusiness Operations Units and Divisions

Cooperate

Corporate
Auditing Division

Affiliated Company
Management Office

Manage/Monitor

Subsidiaries
Internal Reporting Consultation Office (Corporate Ethics Hotline)

28

Cooperate

Audit

Cooperate

Accounting Auditors

Compliance
Basic concept

Ensuring compliance

Ensuring compliance constitutes the basis of a company’s
existence, and thus implementing compliance-based management is the foundation for the advancement of the NEC
Networks & System Integration Corporation Group. The
Group’s Charter of Corporate Behavior clearly presents theissues that we should proactively address as a corporategroup, in order to not only ensure compliance with related
laws and regulations but also respond to the expectationsof our stakeholders and fulfill our social responsibilities. The
Code of Conduct has also been established to help each
employee always make decisions and act responsibly in accordance with the Charter of Corporate Behavior.

To ensure that its employees place the highest priority on compliance, NEC Networks & System Integration Corporation delivers the “Case Sheet” to have the employees think about corporate ethics based on some familiar cases, thereby raising theircompliance awareness. We also have each division prepare the“NEC Networks & System Integration Corporation Action Standards” cards contained in a folder and deliver the folder to each
employee. Using this folder, which contains cards with various
titles, such as “Compliance Card,” “Policy for Compliance with
Competition Law,” and “Ten Articles for Protection of Private
Information,”
employees
check their own
behavior anddecisions intheir daily
operations.
Action Standards folder

NEC Networks & System Integration Corporation Group’sCharter of Corporate Behavior (excerpt)
1. Customer Satisfaction
The NEC Networks & System Integration Corporation Group earns customer satisfaction and confidence by developing and offering systems and services that meet
diversifying customer needs and that are socially beneficial and reliable, and by paying
careful attention to safety.

2. Developing New Solutions
The NEC Networks & System Integration Corporation Group strives to develop creative solutions and always works actively as a solution provider in the network and IT
fields to create new and high values for customers, while contributing to the future
prosperity of society.

3. Fair Corporate Activities
The NEC Networks & System Integration Corporation Group promotes fair, transparent, and free competition and maintains healthy and normal relationships with government agencies and political bodies.

4. Disclosing Information
The NEC Networks & System Integration Corporation Group delivers accurate andsufficient corporate information in a timely, clear, and appropriate manner while enhancing the transparency of its corporate activities.

5. Contributing to Preservation of the Global Environment
The NEC Networks & System Integration Corporation Group reduces the impact on
the global environment and contributes to building a sustainable society.

6. Maintaining Good Relations with the Community
The NEC Networks & System Integration Corporation Group respects the cultures andcustoms of all regions and countries and manages its activities in a way that contributes to community development.

7. No Relationship with Antisocial Forces
The NEC Networks & System Integration Corporation Group will have no relationshipwith any antisocial force or group that may threaten the order or safety of civil society,and will resolutely reject any unreasonable requests from such forces or groups.

8. Social Contribution Activities
The NEC Networks & System Integration Corporation Group fully recognizes that it isa member of society, and actively engages in social contribution activities as a good
corporate citizen.

9. Respecting Human Rights
The NEC Networks & System Integration Corporation Group respects human rights
in all its corporate activities, never accepting any discriminatory practices, child laboror forced labor.

10．Respecting Employees
The NEC Networks & System Integration Corporation Group respects each employee’s individuality. It provides active support for the employees to enable them tobalance their work and family life, while creating work environments where all its employees can fully demonstrate their abilities and carry out their jobs with enthusiasm.

11．Management of Intellectual Property, Customer Information, and Personal Information
The NEC Networks & System Integration Corporation Group recognizes theimportance and value of intellectual property, customer information and personal
information, and properly manages them.

Compliance education
Placing the highest priority on compliance in its business performance, the NEC Networks & System Integration Corporation Grouphas held a face-to-face educational program called “business personnel education” every year since FY 2003, to help each employee
have a concrete understanding of and implement the compliancebased operations in each workplace or operation site.
Moreover, to ensure that our Code of Conduct is thoroughly
observed, we also offer meeting-type programs for new recruits
or those who have been promoted to chief or management positions, as well as online education programs targeting all employees.
Furthermore, many education programs on specific themes, suchas the Subcontract Act, the Construction Industry Act, the Worker
Dispatching Act, and fair trade, are also provided.
Status of participation in “business personnel education”
FY ended March

2011

2012

2013

2014

2015

Number of participants

4,113

4,178

4,290

4,510

4,754

* Non-consolidated NEC Networks & System Integration Corporation

Corporate Ethics Hotline
The NEC Networks & System Integration Corporation Group has
set up the Corporate Ethics Hotline, for the purpose of discovering compliance-related problems in corporate activities at an earlystage and preventing conduct against corporate ethics or compliance with laws. This is the Group’s internal reporting office, which
accepts reporting or consultation from employees when they areunable to judge whether their work performance complies withlaws, internal regulations or other social rules, or when they cannot
consult with their supervisors or related division for some reason.
29

Governance/Compliance

Governance/Compliance

Risk Management
Comprehensive risk management

Initiatives to ensure information security

To ensure the continued growth of the NEC Networks & System
Integration Corporation Group, a risk management system has
been established to implement effective and comprehensive risk
management based on the PDCA cycle, under the leadership ofthe Management Quality Improvement Committee.
The Management Quality Improvement Committee,
which was formed in January 2008, examines and discusses
the policies and specific measures for risks that may have aparticularly large impact on the achievement of our businessobjectives or profit/loss targets, and that require the taking ofcompany-wide prioritized measures. The Management Quality Improvement Committee meets once every three month tocheck the progress on priority issues, and if any improvement
is deemed necessary, instructs the relevant divisions to develop
measures for improvement.
Meanwhile, each internal division and affiliated company
organizes their own management quality improvement activities, thereby ensuring company-wide policies and measures are
implemented within the division or affiliate while promoting risk
management appropriate to the business characteristics ofeach organization.

Believing that it is our responsibility to protect the information
assets NEC Networks & System Integration Corporation hasreceived from our customers in relation to our building of network systems, maintenance/operation services, outsourcing
services, and other operations, and to provide customers with asecure information environment. We position information security as one of our important management issues that should be
addressed with particular emphasis.
We have therefore established a system to ensure information security through organizing the Information Security
Committee consisting of representatives of the relevant internal
divisions, and, in accordance with the “Basic Policy for Information Security,” have formulated the “Basic Regulations for
Information Security” along with the relevant rules and manuals
necessary to maintain and improve information security. The Information Security Committee monitors the status of operationof these regulations, and revises or strengthens the management system as necessary.

Measures against business risks
Each of the group companies and organizations of the NEC Networks & System Integration Corporation Group, in view of theGroup-wide priority risks, selects the risks in their business performance based on their business characteristics, and manages
the implementation of measures against such risks. The progress of these activities is controlled through periodic monitoringof the status of smaller organizations at meetings, etc., of eachcompany or organization. These systematic activities are calledaffiliate management quality improvement activities and division
management quality improvement activities.

Raising employees’ information security awareness
NEC Networks & System Integration Corporation actively promotes educational activities, such as information security education programs targeting the entire NEC Networks & System
Integration Corporation Group, including temporary staff members, aimed at raising their awareness of daily information security.
At the same time, rules for ensuring the security of systems, networks, customer information and corporate secrets,
as well as for compliance with relevant laws and regulations, arespecified as “matters to be complied with in treating customers
and handling corporate secrets” and are reviewed every year.
These are also compiled as a leaflet, pledging that all employeesof the NEC Networks & System Integration Corporation Groupand its affiliates comply with them.

Risk Management System(As of April 2015)

President
Audit & Supervisory
Board

Organizer: Legal & Compliance Division, Corporate Finance & Controller
Management Quality
Improvement Committee Division, CSR Promotion & Corporate Communications Division

Ordercompany-wide
deployment

Corporate Auditing
ReportDivision

Quality Management Committee
Information Security Committee
Company-wide CS Promotion Committee

Audit
Request/orderimprovement

Personnel Quality Improvement Committee
Report tasks/
problems

Division management quality improvement activities(Marketing & Sales Development Unit, each Operations Unit, corporate staff)
Thoroughly communicate
policies and measures

Corporate
control/system control
systems

Management Quality Improvement Committee, Affiliates
subcommittees

Affiliate management quality
improvement activities(Each affiliate)

Thoroughly communicate
policies and measures

The NEC Networks & System Integration Corporation Group employees

30

The NEC Networks & System
Integration Corporation Grouppriority risks● Safety or quality-related

accidents● Information security-related

accidents● Illegal transactions or

improper accounting● Project-related risks● Compliance-related risks(Target areas are specified byeach division)

Data

Financial Highlights

Years ended March 31
2011

2012

2013

2014

2015

212,277
217,948
33,132
22,297
10,835
4,660

215,373
204,658
32,07922,332
9,747
4,474

241,271
235,716
37,182
24,69912,483
7,246

280,071
270,326
44,69030,271
14,4188,257

299,097
292,164
48,11031,951
16,158
7,791

149,464
77,00576,445

149,130
80,07479,503

167,472
85,97485,266

189,059
89,16687,514201,964
94,17392,559−1,595−1,904−3,499−337

18,595−2,64815,946−3,979−1,723−3,429−5,152−2,06623,313−5,50417,809−3,8242,460−3,929
−1,469−4,127

5.0
2.1
51.1
6.2
7.3

4.8
2.2
53.3
5.7
6.3

5.3
3.1
50.9
8.8
7.7

5.3
3.1
46.3
9.6
8.2

5.5
2.7
45.8
8.7
8.3

93.72
1,537.19
26.00

89.98
1,598.77
28.00

145.73
1,714.74
45.00

166.06
1,760.06
60.00

156.72
1,864.61
64.00

For the year (million yen):Orders received...............................................
Sales...............................................................
Gross profit......................................................
Selling and general administrative expenses....
Operating income............................................
Net income......................................................

At year-end (million yen):

Total assets.....................................................
Net assets.......................................................
Equity capital...................................................

Cash flows (million yen):

Cash flows from operating activities ..................
Cash flows from investing activities ...................
Free cash flows ...............................................
Cash flows from financing activities ...................

Ratios and return indicators (%):

Operating income margin................................
Net income margin..........................................
Owner’s equity ratio.........................................
Return on equity (ROE)*1 .................................
Return on assets (ROA)*2 ................................

Per share of common stock (yen):

Net income......................................................
Net assets.......................................................
Annual dividend...............................................

*1: ROE = Net income / Average equity capital for the year (average of equity capital at the beginning of the year and equity capital at the end of the year) × 100*2: ROA = Ordinary income / Average total assets for the year (average of total assets at the beginning of the year and total assets at the end of the year) × 100

Operating Income and Operating
Income to Net Sales

Net Sales

Net Income and Net Income per Share

Operating income (million yen)
Operating income (margin) (%)(million yen)
292,164

300,000

Net income (million yen)
Net income per share (yen)20,000

10.0

9,000

166.06

270,326
217,948
200,000

15,000204,658

7.5

14,4186,000

12,483
10,00010,8355.0

100,000

9,747
4.8

5.0
5.3

5.3

5.5
3,000

5,000

’12

’13

’14

ROE and ROA
ROE (%)’12

Net assets (million yen)

’13

8.7

6.2

7.7

8.2

8.3

93.72

89.98

53.3

50.9

4,660

4,474

’11

’12

0

Year-end dividend (yen)’13

80,07485,974’15

Interim dividend (yen)

80

60.0

60
77,005’14

94,173

46.3

45.8

64.0

40
45.0
40

5.7

26.0

20

2.5

28.0
26.0

20

0

0

’12

60

89,16660,000’11120Dividends per Share
60

51.1

80,000

7,791

7,246

0

’15

Owener’s equity ratio (%)

7.3
6.3

’14

100,000

9.6
8.8

5.0

’11

Net Assets and Owner’s Equity Ratio

ROA (%)

10.0

7.5

0

’15

8,257

2.5

0

0

’11

145.73

16,158

235,716180
156.72

’13

’14

’15

*Figures are for each fiscal year ended March 31 or at the end of each fiscal year.

0

’11

’12

’13

’14

’15

0

13.0

14.0

13.0

14.0

’11

’12

30.0

32.0

30.0

32.0

’14

’15

19.0

’13

33

Stakeholder Dialogue

We will continuously enhance our corporate value,
as well as the value of our personnel working for thecompany, thereby contributing to the sustainable
development of the world and society.
Inviting Mr. Hideto Kawakita, CEO of IIHOE (International Institute for Human, Organization, and the Earth), our executive officer Komei Sakanashi and representatives of the CSR Promotion & Corporate Communications Division held a
dialogue (stakeholder dialogue) on our business activities and related CSR activities.
Dialogue outline● Date: July 24, 2015 (Fri.)● Place: NEC Networks & System Integration
Corporation Iidabashi Head Office● Participants
External expert: Mr. Hideto Kawakita
CEO of IIHOE (International Institute for Human,
Organization, and the Earth)Participants from NEC Networks & System Integration Corporation:

Komei Sakanashi
Executive Officer in charge of CSR promotion

Seiichi Inaba
General Manager, CSR Promotion & Corporate
Communications Division

Seiichiro Yamamoto
Group Manager, CSR Promotion & Corporate
Communications Division

Takami NakajoManager, CSR Promotion & Corporate Communications Division■Dialogue summary
Mr. Kawakita: Hearing your CSR initiatives, I felt the key
points are to make it easier for employees to keep on
working and to promote CSR procurement.
To make it easier for employees to keep on working, it
is important to identify the factors that inhibit them fromdoing so and take appropriate countermeasures. Specifically, measures to reduce health problems, including
mental health problems, and to support employees’ caring for their family members, which is becoming one of
the inevitable reasons for their leaving their work, would
be useful. Moreover, if the length of service years varies
between men and women, what should be done to reduce the gap? Or how can the length of service, in addition to the employment rate, of persons with disabilities
be increased? Initiatives from these perspectives are alsoneeded.

Sakanashi: NEC Networks & System Integration Corporation appoints workplace counselors whom employees
can feel free to consult on various matters. We also set
the Health Management Office to support both the physical and mental health of our employees, while enhancing
the program to support the return to work of employees
who have taken leave for childcare or for other reasons.
Last fiscal year, we held a seminar on nursing care for the
first time, which was participated in by more employees
than expected, reminding us of the high needs in this field.
Based on the points you have pointed out today, we willreorganize and promote our initiatives aimed at making iteasier for employees to keep on working.
Mr. Kawakita: As to CSR procurement, preparations toward the issuance of ISO 20400 have been advancing. It
is increasingly important to reflect the perspective of CSR
promotion in evaluating or monitoring your suppliers. You
need to check whether their attitudes toward the environment, human rights, and industrial safety and health areappropriate, and ask for improvement or corrections if
necessary.
Many of the companies for which I provide third party
opinion evaluate their suppliers based not only on quality, cost, and delivery period, but also on their attitudes
toward the environment or society.
31After the Stakeholder Dialogue

Komei Sakanashi
Executive officer in charge of CSR
promotion

It is necessary to look over the entire supply chain, assessand select the risks to be addressed with high priority, andtake necessary measures in cooperation with the suppliers.
Sakanashi: Since 2006, we have required a procedure
to check whether a supplier has an environmental management system before starting transactions with them,and have monitored on a periodic basis the safety-related
quality and information security, which are associated withlarge risks due to the nature of our business. In response
to your opinions, we will further enhance the processes forpolicy-sharing with our suppliers and improvement fromthe perspective of CSR procurement.

Mr. Kawakita pointed out, in view of the challenges facing Japanese society, that NEC Networks & System Integration Corporation should pay strong attention to the importance of making
it easier for employees to keep on working and promoting CSR
procurement as “defensive CSR” approaches, and providing thevalue of the improved customer productivity as an “aggressive
CSR” approach. It was very useful advice, which showed us thethemes out of many issues that we should address with high priority.
Based on his advice, we will enhance the measures taken in eachfield, and contribute to the sustainable development of the worldand society, placing the primary focus on the two actions below:● In identifying the tasks of high importance to us, to reorganize

the values that we are able to provide for society and utilize
them to solve social issues

Mr. Kawakita: Making it easier to keep on working andpromoting CSR procurement are defensive CSR approaches. In terms of “aggressive CSR,” creating customer values, in the form of the improved customer productivity, and communicating the appeals thereof, are important.
In Japan, where the productive population will decline at
an accelerated pace along with the further advancementof aging, improving productivity is an important task that
affects not only companies but also the entire society. As
a company that provides ICT solutions, you should clearly
understand this role of providing value to this end, andtransmit information on the effects and achievements
thereof.
Sakanashi: The EmpoweredOffice, our office innovation
concept, having pursued reduction of the impact on theenvironment, is aimed at realizing innovation in working
styles and contributing to the improved productivity of ourcustomers. In our overall businesses, we will promote providing values and communicating the appeals thereof witha view to improving the productivity of our customers.

● Regarding

personnel, our largest management resource, toincorporate diversity in our organizations while implementing
measures to continuously enhance the values thereof

Mr. Hideto Kawakita
IIHOE(International Institute for Human,
Organization, and the Earth)
CEO and publisher of SocioManagement

As I said in the dialogue, for a company in the ICT field, besides
internal initiatives to reduce environmental burdens and contribute to society, the most important tasks are to make it easier for
employees to keep on working, promote CSR-based actions at
suppliers, and improve the productivity of users.
Social responsibility should be borne not by the controlling departments of the Head Office but by the staff members and employees
in charge of marketing, services or maintenance, who have directcontact with society represented by users and their customers, on adaily and proactive basis. I want you to remind yourself that not only
ensuring the safety of information, but also reducing environmental
burdens and respecting human rights constitute part of the quality
assurance for users and their customers.
Since it is sure that users and their customers will further expand
overseas, diversity in personnel should be further promoted, andnot only Japanese women and people with disabilities but also
people with diverse cultural backgrounds and values should propose ideas and actions to the management. In view of the 2020s,
the strategies to determine in which regions, and how many people with what skills, should be secured and developed are also
crucial. Instead of following the changes of society, I want you to
implement steady initiatives based on the strategies to keep yourself prepared, with a clear outlook and strong motivation.

32

NEC Networks & System Integration Corporation will be committed to increasing
customer value by redesigning future communications from the user’s perspective.
We are aiming to build a society that enjoys active communication. We will not
merely create highly reliable networds that provide security and reassurance but
will redesign futre communications from customer perspectives to add value forcustomers and advance society.

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