Initiatives for Society

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

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

Organizations for Improving Quality
Furukawa Electric has established Furukawa Electric Group Quality Management Committee, which is chaired by thepresident, as the topmost body for promoting quality management at the Group level. Directed by this committee,
Divisional Quality Management Committees led by divisional heads promote ongoing efforts to maintain or improve thequality of our products, customer services and operations.
Promotion
Framework

President
Furukawa Electric Group
Quality Management Committee

Representative Quality
Management Meeting

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

Chair :
General Manager of the Production Technology Division
Members :Quality Promotion Department
Divisional Representative Quality Management

General managers of each business division

Affiliated companies

Representative Quality Management
Divisional Quality Management Committees

Targets and Results (Quality)

Achieved
FY2014

Targets

Strengthening of fundamental
Quality Power-R
 educe “failure costs” by 10%
from fiscal 2013

Not achieved

FY2015Results / Achievement-S tarted a Quality Strengthening Project toselect and promote key themes from thequality improvement activities previously
done by divisions.
-D id not achieve objective in the end, but
took significant measures equivalent to
7% of Furukawa Electric’s own internal
failure costs for fiscal 201432

Partially achieved

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Targets

Strengthening of fundamental
Quality Power- R
 educe “failure costs” by 10%
from fiscal 2014

Initiatives for Society

Efforts to Reduce Failure Costs
The Quality Strengthening Project activities started
in fiscal 2014 are team activities conducted on key
themes related to failure costs selected by divisions
and the Quality Promotion Department.
There were a total of 16 themes in fiscal 2014, with
24 events for executives held to promote activities.
At the end of the fiscal year, we also held a factfinding presentation event in Quality Strengthening

Letter of thanks received from Central
Japan Railway Company (JR Central)F

urukawa Electric received a certificate ofappreciation from the Central Japan Railway
Company (JR Central) at its ceremony marking the50th anniversary (on October 28, 2014) of the Tokaido
Shinkansen in recognition of our significant contribution
to the safe and stable operation of that line.

Projects in order to share examples of improvements
within the whole Group, including our affiliatedcompanies.

Challenges and Future Policy
In fiscal 2014, we engaged in strengthening our monozukuri (manufacturing) capability and set about reducing ourGroup-wide failure costs as a priority goal. Our fiscal 2014 objective was the assessment of Furukawa Electric’s
separate “failure costs” (= failure costs/sales ratio), but we did not achieve this objective.
Meanwhile, collating and studying the results of our Quality Strengthening Project activities has highlighted our shared
weaknesses.
With the strengthening of these weaknesses in mind, we intend to continue our Quality Strengthening Project
activities and subsequently develop a Group-wide plan (or concept) for resolving quality problems.

Message from the General Managers
Kazuhisa Kashihara
General Manager, Quality Promotion
Department, Production Technology Division

In accordance with our basic
policy on quality control, we
promote a continuous factbased management cycle atevery stage from research anddevelopment to production,
sales, service, and administrative
work, in every division, and at
every level, thereby maintaining
and improving quality.
To be able to create productsthat are attractive to customers,
we make thorough checks atevery process from productplanning through to the point ofsale.
Also, in order to put quality
into our products from the very
beginning and enhance ourability to complete production,
we promote activities that willraise quality throughout thewhole Group and strive toimprove the production processitself including the developmentof our own original technologies.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201533

Initiatives for Society

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

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

Conducting Training on Subcontracting Transactions

on the results of these evaluations and lessons learned
through our experience of the Great East Japan

In order to forge sound relationships with business

Earthquake, we requested ongoing cooperation frompartners through fair transactions that comply with rules

certain business partners on business continuity andand regulations, Furukawa Electric Group provides

stable supply initiatives.

training for employees on subcontracting transactions.
In fiscal 2014, in addition to continuing with the courses

In fiscal 2014, we evaluated some 150 business
partners and provided feedback to them.

we have conducted to date, we sought to ensure
thorough awareness of the content of the Act against
Delay in Payment of Subcontract Proceeds, Etc., to
Subcontractors (Subcontract Law).

Promoting CSR in Procurement Activities
Based on our CSR Deployment Guideline for Business
Partners, we engage in procurement activities with “fullPartners Meeting and Partner Evaluation Scheme

legal compliance and fair trading practices” and“consideration for human rights, safety and the

Furukawa Electric seeks to deepen awareness among

environment”. We are also continually providing

our business partners through regularly held Partners

encouragement at partners’ meetings by explaining theMeeting, where we explain the state of the Company,

state of our efforts to our trade partners, asking for their

our procurement policy and individual company

cooperation with our activities, and so on. In fiscal 2014,

management strategies. For fiscal 2014, this meeting

we expanded our CSR response questionnaire

was held in June and was attended by 90 main

conducted at companies undergoing partner evaluations

business partners.

to include trade partners undergoing our manufacturing

We also evaluate main business partners on the basis

site survey, mentioned below. As a result, about 650

of quality, technology, price, delivery system, degree ofcompanies responded that they had understandings ofsocial contribution and financial condition, and then holdthe activities of Furukawa Electric.

meetings to provide feedback on our findings. In
addition, we discuss
the results of our34

Supply Chain BCM (Business Continuity Management)

evaluations with them

Furukawa Electric conducts regular questionnaire

to more closely alignsurveys on its main partners about their BCM measures.

our awareness of

In fiscal 2014, we conducted our usual questionnaire

procurement activities.

along with a manufacturing site survey about where the

Furthermore, basedmaterials and parts delivered from our partners are

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Society

made. By entering the results received from our partners

sourcing of minerals, we will work with the Japan

into a database, we have become able to quickly

Electronics and Information Industries Association (JEITA),

identify which partners are mostly likely to be affected

an industry organization, on initiatives targeting theduring a natural disaster.

responsible sourcing of minerals.

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

Regarding the handling of conflict minerals, ourapproach to responsible mineral procurement has been

Challenges and Future Policy

to comply with the code of conduct of the EICC

We want to fully grasp the state of our CSR activities(Electronics Industry Citizenship Coalition), including

along the supply chain by regularly asking our partners

setting a Group policy and informing other Groupto complete a questionnaire on their understanding ofcompanies and partners.

our CSR Deployment Guideline for Business Partners.

In fiscal 2014, we updated our data by repeating theWe will also seek to deepen BCM by giving

fiscal 2013 survey targeting the leading products ofencouragement to partners based on the results of our

Furukawa Electric and our Group companies. Going

BCM questionnaire and manufacturing site survey, withforward, in addition to requesting the cooperation of Groupthe aim of improving crisis response levels along thecompanies and our business partners in the responsible

entire supply chain.

Targets and Results (Procurement)

Achieved
FY2014

Targets

Strengthen strategic relationships
with partners (suppliers)-C ontinue to conduct partner
assessments-P romote awareness of CSR
Deployment Guidelines amongsuppliers-E xamine specific measures aimed
at strengthening the supply chain
based on the results of BCP surveys
carried out at suppliers-C arry out conflict minerals survey(survey for the purposes of updating
data)

-C
 onducted partner
evaluations of about 150
main partner companies, held
partners’ meetings-C onducted CSR response
questionnaire, received
answers from about 650
companies-C onducted surveys

General Manager, Procurement Department,
Finance & Procurement Division

Targets

Strengthen strategic relationships withpartners-C ontinue partner evaluation system andutilize feedback interviews-C ontinue to inform partners about CSR
Implementation Deployment Guidelines-R eviewed and increased
the number of procurement
points (and sometimes
recommended inventory) for
principle products

Satoshi Tosaka

Not achieved

FY2015Results / Achievement

Message from the General Managers

Partially achieved

Ever since its foundation,
Furukawa Electric has stayed inbusiness by supplying people
with social infrastructure andcontributing to society as asupplier of products. However,
our success is not just the resultof hard works at our company. It
is also thanks to the steadydelivery by our suppliers of the
raw materials we use to create
products.
In the future, our businessenvironment is likely to change-U se the results of the BCM questionnaire
and manufacturing site survey to review
and implement supply chain reinforcement
measures such as increasing the numberof procurement points-C onflict mineral survey (data update
survey)even more rapidly. Under thesecircumstances, we will need tostrengthen our supply chains
further in order to continue
contributing to society. We
intend to use partners' meetingsand partners’ assessments toimprove the mutual
understanding we have with our
supplier s, and to continue
contributing to society throughmeasures such as the promotionof CSR activities andstrengthening of BCM.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201535

Initiatives for Society

Relations with Shareholders
Information Disclosure Policy and IR Framework

Relations with Individual Investors

Furukawa Electric Group Basic Policy on CSR

In October 2014, we held our 7th plant tour forrequires that the Group seeks to improve upon theindividual investors. Visitors were selected by lottery

sound, friendly relationships we maintain with all of ourfrom among those who responded to an open invitation,

stakeholders. Our Own Regulations on the Timely

with 42 people invited to attend out of the 227 who

Disclosure of Corporate Information meanwhile set out a

responded. During the tour, we offered participants aframework for the disclosure of appropriate information

number of opportunities to get a feel for Furukawa

at the appropriate time.

Electric. We introduced our production processes for

Based on this policy, all IR activities are conducted by

optical fiber cables and automotive parts. The tour also

the Investor & Public Relations Department andfeatured a simple explanation on the phenomenon ofoverseen by the director in charge of IR, who is Generalsuperconductivity.

Manager of the Finance & Procurement Division.

Relations with Institutional Investors andSecurities Analysts
In addition to holding management briefings(covering interim and year-end results and mid-termplans when announced) for institutional investors andsecurities analysts, we actively encouragecommunication all year round.
Optical fiber cable plant

Briefing for institutional investors

Message from the General Managers

Furukawa Electric’s businessbegan with copper smelting andOsamu Suzuki
General Manager, Investor & Public Relations the manufacture of electric
Department, Finance & Procurement Division wires. Through more than 130
years, the numerous productsthat we manufacture based on
our materials technology
support the lives of people
around the world in a wide
v arie t y o f fields, including
telecommunications, electric
power infrastructure andautomobile.
However, because we often

36

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Automotive components plant

work behind the scenes,
shareholders and investors
often tell us that they feel
unfamiliar with the content ofour business.
We will continue to work hardto host events such as factory
tours, in addition to making
regular ne ws releases anddeveloping the website, so thatpeople can clearly understandand feel more familiar with ourb u s i n e s s . Yo u r c o n t i n u e dsupport is greatly appreciated.

Initiatives for Societyt h e f in a n c i a l s t r u c t ure, m a k e gro w t h s t r a t e g y

Returning Profits to Shareholders

investments with a focus on the infrastructure andFurukawa Electric considers the appropriate return ofautomotive markets and make investments aimed at

profits to our shareholders to be one of our mostdeveloping the next generation of business to build aimportant policies. Our basic policy is to continue

platform for sustainable growth, the Company decided

making steady dividend payments in consideration of

to award a year-end dividend of ¥3.0 per share.

future business developments and in anticipation of theRegarding dividend payments in the fiscal year ended

Company’s future profitability trends and financial status

March 31, 2016, the Company expects to forgo thefrom a long-term perspective.

interim dividend and award a year-end dividend of ¥4.0

Regarding dividend payments in the fiscal year ended

per share.

March 31, 2015, in consideration of the need to improve

Stock Information and Dividends
General stock information (as of March 31, 2015)

Distribution of ordinary stock among shareholders

Stock Code on theTokyo Stock Exchange

5801

Domestic companies, others

Stock Exchange
Listings

Tokyo Stock Exchange, First Section(as of March 31, 2015)

0.06 %
458,728 shares

7.34%
51,869,711 shares

Individuals,
others2,596,000,000 shares

Common Stock

2,500,000,000 shares

Preferred Stock

50,000,000 shares

Foreign corporations

Deferred Stock

46,000,000 shares

14.90%
105,272,850 shares

Common stock issued

Common Stock706,669,179 shares

Minimum trading units

1,000 shares

Shareholder register
agent

2-1 Yaesu 1-chome, Chuo-ku, Tokyo, Japan
Mizuho Trust & Banking Co., Ltd.

6

Fiscal year

From April 1 to March 31

4

Shareholders’ meeting

June each year

38.55%
272,416,111 shares

Financial
Institutions

Total number ofshares issued andoutstanding

Total
Number of sharesauthorizedTreasury stock

35.58%
251,460,690 shares

706,669,179

Securities
companies
3.56%
25,191,089 shares

Cash dividends per common share (including forecast)(Yen)
InterimYear-end

4.0
2.5

3.0

3.0

3.0

2012

2013

2014

2

0

2011

2015

(FY)

Major top 10 shareholders of the Company and the Company’s capital contributions to such shareholders
Number of shares

Shareholding
ratioJapan Trustee Services Bank, Ltd. (Trust Account 4)

33,511,000

4.75%

The Master Trust Bank of Japan,Ltd. (Trust Account)

31,148,000

4.41%Japan Trustee Services Bank, Ltd. (Trust Account)

25,028,000

3.54%

Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, Mizuho Bank Account)

24,135,000

3.42%Asahi Mutual Life Insurance Co.

13,650,500

1.93%

FURUKAWA CO., LTD.

13,290,455

1.88%

Name of major shareholders

Japan Trustee Services Bank, Ltd. (Trust Account 9)

11,997,000

1.70%

Fuji Electric Co., Ltd.

11,000,000

1.56%

Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, FURUKAWA CO., LTD. Account)

10,919,000

1.55%

Trust & Custody Services Bank, Ltd. (Mizuho Trust & Banking; Employee
Retirement Benefit Trust, Asahi Mutual Life Insurance Co.Account)

10,500,000

1.49%

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201537

Initiatives for Society

Relations with Employees
Personnel Management

Main measures contributing to the Group’s global management
Top management reinforcement measures

Personnel Management Policy
Our basic personnel management policy focuses oncontinuously creating human resources who are capableof putting the Five Principles of the Furukawa ElectricGroup Credo into practice on their own initiative.

1R eview of our performance evaluation systemand compensation structure (for executive andmanagement levels)2D evelopment of a personnel database and realizationof strategic placement etc. through the introduction ofa succession plan.

Corporate culture reform and personnel bottom-up measures

Please refer to page 24 for “Furukawa Electric Group
Corporate Philosophy”.

Basic Approach
We believe that a workplace environment thatencourages among all employees compliance andconsideration for human rights serves as the foundation

1 Introduction of the “Shared Human Resource Vision& Mission for One Furukawa”, and formulation andimplementation of FM-Career Design (our newplacement standard)
2P romotion of mutual personnel exchanges throughreviewing our training curriculum, and the overseas
deployment of young employees, etc.
3F
 ull-scale diversity management (policy to promote
active participation by women)

upon which employees can maximize their capabilities.
On this basis, we are devising and introducing apersonnel system that will harness employees' diverse
abilities and personalities. This should encourage
employee creativity, setting the cornerstone for“continuous technological innovation”.

Human Resources Development
Enhancement of Education Program
We are training human resources who can implement
innovation that managements seek. Our aim is to

Challenges and Future Policy
In our 2015 Mid-term Management Plan, in order todevelop “sensitive personnel who can think and act on
their own initiative” as we maximize our organizational
strength and spread our Group management thinking.

build a solid footing to deal with major changes in the

The state of our leaders affects corporate culture andbusiness environment and to grow as one Group, we

reflects in our business results, which is why we givestate our mission to foster tough human resource who

training at each level to develop leadership and thecan survive the harsh global competition and to build ahuman qualities, especially sensitivity, among all ourcollaborative environment including our affiliates in Japan

employees. We work hard to cultivate an interest in

and overseas, and we emphasize “top management

people and a sense of respect for others.

reinforcement measures” and “corporate culture reformand personnel bottom-up measures” to contribute to
the Group’s global management. Specifically, we will

Nurturing Leaders Adapted to the Global Scene

carry out individual policy measures from the aspect of

We started our Global Business Leader (GBL) training“ability development” that focus mainly on strengthening

in 2006 in order to develop personnel who will take on

global human resource training, such as our new

the role of management in the future. Since fiscal 2013

“Shared Human Resource Vision & Mission for One

this has been reformed to Global Mindset Program

Furukawa”, a uniform code of values for formulating(GMP), with its extra emphasis on global human resource

personnel strategy and personnel measures in eacheducation. We have also operated a Global Development

Group company.

Program (GDP) for overseas local employees since 2010
with the aim of strengthening links within the Group, thecurriculum being par tly shared with the GMP.
Furthermore, in fiscal 2014 we launched the Global
Challenge Program (GCP), which dispatches young
employees to foreign countries. We are working to align38

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Society

these various programs to develop human resources whowhich production workers and staff conduct their duties

can play a dynamic role on the global stage.

under the common buzzword of “genba-ryoku
improvement”. In fiscal 2014, as the number of affiliatecompanies participating in the training exceeded 20, it

Global Human Resources Training System
Training global human resources

Global Development
Program

GMP

GDP

Assistant Diversity
Global Mind Set
managers Global Leadership Mini MBA
・Accounting
Recommend key Business Situation
・Strategy, etc.
people in eachdepartment fortraining as
global humanresources

Global Challenge
Program(For local
employees)

GCP

Region-specific training

Global Mindset
Program

Personnel management training

Data Base(Conducted throughfiscal 2013)

Training just prior to overseas assignment

GBL

Sectionmanagers

Training in basic management knowledge

Global Business Leader

Generalmanagers

Expatriates

Teamwork
improvement
workshops atoverseas sites

was also launched at overseas plants. Whether in Japanor abroa d, w e are enga ged in reinf orcing ourmonozukuri capability.
People Undergoing Genba-ryoku Reinforcement Training（No. of genba-ryoku trainees）

600

Affiliates

Furukawa Electric

500

88

400

183

43

300

423

200
100
0

24

42

75

76

2009

2010

292

344

159
156

2011

2012

2013

2014

(FY)

Using Diverse Human Resources
Project to Improve Genba-Ryoku Capabilities

One of our Group’s management philosophy is to

In fiscal 2009, we began genba-ryoku training for all“nurture human resources at every level, so that we canmanufacturing on-site employees at our factories. To

become a more diverse and creative organization”. It isdate, the training has consisted of foreman training, mid-essential for the progress of our Group’s global

level worker training, and basic program, with the aim ofmanagement to create a corporate culture in which

cultivating “genba-ryoku”, the ability to think and act for

more diverse personnel can succeed.

oneself, and boosting the monozukuri capability of theworkplace.

In April 2014, we set up a Diversity Promotion Section
to accelerate the creation of a work environment thatgives a greater active role to more diverse personnel.

Activities to Support the Success of
Women in the Workplace
Furukawa Electric has continually addressed theimprovement of women’s work environment and workMid-level workers attending a classlife balance from fiscal 2005, and since September 2014
we launched “Furukawa “V” Challenge!!”, our campaign
to support the success of women. We have brought in arange of integrated measures to encourage careerdevelopment among women and create a more
pleasant workplace and greater job satisfaction, with thefollowing objectives.

Monozukuri staff undergoing genba-ryoku training (group work)[Objectives related to support the success of
women in the workplace](1) W e aim to double the number of female in the

Genba-ryoku training for monozukuri staff (production
division employees providing on-site support) was also

managerial posts by 2018.
(2) We aim to double the proportion of females hired by 2018.

started in fiscal 2013 to promote a corporate culture in

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201539

Initiatives for Society

information exchanges to share know-how on hiring

Diversity in Hiring

within the Group, we hold Furukawa Electric Group

Furukawa Electric is actively recruiting international

Forum held in Tokyo and Osaka, at which we conductpersonnel and international students to support thebriefings in conjunction with Group affiliates, and work

globalization of our business.

proactively demonstrate the appeal of Furukawa Electric

Furukawa Electric Group has a number of initiatives

Group to students.

underway to recruit talented personnel. In addition to
Recruitment figures by gender (Number of employees)

Specialized
staff
Professional
staff

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015

84
17
101
1
86
1
87

79
13
92
4
44
0
44

73
9
82
4
15
0
15

66
12
78
2
21
1
22

49
10
59
3
2
0
2

26
6
32
0
0
0
0

21
5
26
1
0
0
0

28
7
35
1
0
0
0

Male
FemaleTotal
Foreign nationals
Male
FemaleTotal

Encouraging Employment of Disabled People

Internships

Furukawa Electric has established special subsidiary

Ever since the Japanese government introduced a

Furukawa New Leaf in fiscal 2004 for the purpose of

system of internships in 1997 as part of an industry-

improving our employment rate of disabled people. As of

academia-government collaboration, in our role as a

March 31st 2015, Furukawa New Leaf employs 39 people

manufacturer Furukawa Electric has taken on numerous

who are intellectually challenged, and Furukawa Electricscience and engineering interns with the aim of

has an overall disabled employment rate of 2.29%.

contributing to the fostering of Japanese technicians of

Furukawa New Leaf opened a new operating base in

the future. We have already taken on more than 200

fiscal 2013 at Mie Works, in addition to those already atstudents across our various workplaces. In recent years,

Hiratsuka Works and Chiba Works, to further increase

we have also actively sought to accept students fromour disabled employment rate.

o v er s e a s uni v er si tie s in a ddi tion t o Ja p a ne s euniversities.

Furukawa New Leaf employees at work

Ratio of employees with disabilities (Furukawa Electric)

Internship training at Nikko Works

（％）
2.4

2.29％

2.3

Improving the Working Environment throughLabor-Management Opinion Exchanges

2.2

Furukawa Electric maintains a basic position that both

2.1
2.0

1.95％

1.94％

1.94％

labor and management should endeavor to engage insincere discussions, and therefore we focus on issue

1.9

resolution and deepening mutual understanding.

1.8
2011

40

2012

2013

2014

(FY)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

We hold our Central Management Briefings twice

Initiatives for Society

annually for public exchanges of opinion between labor

Personnel System Exploratory Committee and theand management. We have conducted such meetings

Committee for Studying Shorter Hours that are designed

for 63 years from fiscal 1952. As of May 2015 we had

to improve the working environment, which

held these briefings 125 times. Representatives frommanagement and labor discuss on a daily basis. Theselabor and management exchange frank opinions anddiscussions lead to improvements in various systems

share information about a broad spectrum of items at

and strengthen monitoring functions, such asthese briefings, such as the business environment,compliance response and the implementation status ofmanagement, and topical matters.

other CSR activities.

We also have in place various committees such as thePartially achieved

Targets and Results (Personnel Development and Working Environment)
FY2014
Targets

Strengthening of global humanresource training-C onduct Global Development
Program (GDP)FY2015Results / Achievement- Visualize genba-ryoku
improvement plan-E
 xpand monozukuri staff training-E xpand genba-ryoku training toaffiliates

Support for diverse work styles
and work-life balance- Introduce half-day units of leave
for nursing care

Targets- Conducted GDP training- In GCP, assigned 4 people to OneFurukawa course and 1 person to
Frontier course (Mexico)- Implement Global Challenge
Program (GCP)
Reinforcement of monozukuri
capability

Not achieved

Achieved

Strengthening of global humanresource training-C onduct GDP- Implement GCP-D rew up genba-ryoku improvement planfor two affiliates (FEIC Kyushu (note 1) ,FMGW Shirone (note 2)), conducted genbaryoku training (basic program)

Reinforcement of monozukuri
capability-B egan training for monozukuri staff(production division employees
providing on-site support), 7 divisions
from Furukawa Electric and 10 affiliatecompanies took part-S tart genba-ryoku training ataffiliates- Introduced half-day units of leave fornursing care and half-day units ofaccumulated leave for childcare- Introduce half-day units ofaccumulated leave for childcare-S et “ideals” and “targets” fordifferent levels and different duties

Support for diverse ways ofworking, and work-life balance-E xpand congratulatory/
condolence leave to include
spousal childbirth-R educe no. of people taking
extremely little annual leave(note 1) FEIC: Furukawa Electric Industrial Cable Co., Ltd.
(note 2) FMGW: Furukawa Magnet Wire Co., Ltd.)

Message from the General Managers
Taizo Matsumura

For the Furukawa
Electric Group to
survive andachieve continuous
growth in the faceof serious global
competition, it isessential that all
employees withdiverse views,
abilities, andbackgrounds andregardless of characteristics such as age, gender or
nationality, openly share their opinions and act withsincerity.
To strengthen our Group’s global management, thecompany set up a Diversity Promotion Section in April

General Manager, HR & Administration
Department, Administration & CSR
Division

2014 to engage more actively in diversity
management. In particular, we see the pressing issue
in supporting the success of women as a top priority,and have set ourselves quantitative targets.
To raise the overall strength of the Group, we aredeveloping tough human resource and a morecollaborative environment by making career formationand human resources more fluid through planned
allocation. We have done this with the introduction of
FM Career Design, a personnel system that stimulates
the ability and desire to face challenges in individuals
and the generation of innovative ideas inorganizations, and the Global Challenge Program(GCP) that aims to give overseas experience to young
employees.
We will continue to actively take the above and othermeasures in future in order to accelerate the creation ofan environment and corporate culture where morediverse human resources play an active role.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201541

Initiatives for Society

Occupational Health and Safety
Occupational Health and Safety Management Promotion System
In line with the 2015 medium-term plan's policy of strengthening Group management, we have revised our activity
promotion structure. To this end, in fiscal 2013 we have established Furukawa Electric Group Occupational Health and Safety
Committee, chaired by the president. This committee, comprising members of management, deliberates, determines andfollows up on policies and measures related to occupational health and safety activities throughout the Group.
Promotion
Framework

President
Furukawa Electric Group Occupational
Health and Safety Committee

Representative Safety and Health Meeting

Committee chair : President
Committee members : Management
Organizer : General Manager,
Safety and Environment
Promotion Department
General Manager,
HR & Administration
Department

Chair :
General Manager of the Production
Technology Division
Members:
Divisional Representative Safety and HealthWorks general managers
Safety and Environment Promotion Department
HR & Administration Department

General managers of each business division

Affiliated companies

Representative safety and health
Divisional occupational health and safety committees

Status of Activities and Future Initiatives

Safety and Health Activities Presentation Meetings

Looking at our safety record during fiscal 2014, we

We have been holding presentation meetings on thefailed to reach our target of one or fewer accidents

Group’s safety and health activities and awarding therequiring leave, as two occurred. As a result, we havebest with commendations. In fiscal 2014, we turned

set about reforming our corporate culture to keep fromthese meetings into a conference in which Grouptaking a backward step on our safety record andcompanies participated for the first time. A total of 13

strengthening initiatives toward our goal of zeroteams selected from various divisions (including four

accidents and zero hospitalizations.

teams from GroupThe core tenets of our basic policy for fiscal 2015

companies) gavenaturally include legal compliance, as well as content

presentations andlinked to reforming the corporate culture, such asreceived commendations“Becoming a Safety Conscious Person” and “Realizing

from our company

Fundamental Safety”.

president.

Specifically, we have set forth the following five items.
1. E
 ndeavor to eradicate accidents in accordance withthe objectives of the Industrial Safety and Health Act.
2. R
 educe accident risks by realizing “fundamental
safety”.
3. D e v elop “sa f e t y conscious per son” throughcommunications and using the 5S.
4. A im at self-management through self-checks,
maintenance and improvement.
5. P ractice Group health management activities throughmental and physical health improvement.

Educating Employees at “Anzen Dojos”
Furukawa Electric has placed “Anzen Dojos” (safety
education centers) at manufacturing sites to enable
employees to get a sense of the dangers. These centers
are designed as educational facilities where employees
can experience various dangers, such as heavy items,
edged tools, work inhigh places, revolving
equipment andelectricity, to raise their
sensitivity to danger.

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FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Society

Executive Follow-up on Accidents

Mental Health Education

We conduct a follow-up of Furukawa Electric and our

We began conducting mental health measures inGroup companies by our executive in charge of safety

fiscal 2002, In the past, stress control training,when an accident occurs or according to the previous

workplace mental health training with a focus on Work

year’s performance. We seek to prevent a recurrence byEngagement, and Pleasant Workplace Discussion

checking the suitability

Sessions aimed at improving the workplace environmentand retention rate ofhave been implemented across the company.

countermeasures,

In fiscal 2014 and fiscal 2015, Self-care Training and Line

engaging in dialog toCare Training programs will be implemented with the aim

make things intrinsicallyof helping all employees in their early forties and middle-

safe, and so on.

ranking managers to respond to all types of change.

Work Accident Occurrence Status

Strengthening Smoking Measures

The frequency rate of accidents resulting in time off

In fiscal 2003, we commenced measures to counter

work (note 1) (from April 2014 to March 2015) decreased tosmoking in earnest, introducing programs to prevent

0.28 in Furukawa Electric only but increased to 0.77

exposure to passive smoke and encourage quitting

among all Group companies in Japan.

smoking. As a result of such activities, the percentage of(note 2)

smokers among male employees has fallen by
Frequency rate of accidents resulting in time off work(%)

Frequency rate (note 1)

2.0

All industries
Whole Group in Japan(note 2)

1.61

1.62

Whole manufacturing industry
Furukawa Electric

1.59

1.58

(note 3)fiscal 2020 at the latest, and have continued to adopt a
multifaceted approach with the following three main

0.98
0.58

0.5

0.37
0.0

aim to switch to a smoking ban during working hours infiscal 2017 and to an entirely smoke-free workplace by

1.66

1.5
1.0

approximately 20 percentage points over 10 years. We

2010

1.05

1.00

0.94

0.72
0.53
0.49
2011

0.71

0.37

0.40

2012

2013

1.06

approaches: sharing information, supporting efforts to

0.77

quit smoking and creating a smoke-free environment.

0.28

Responding to Asbestos-Related Health Issues
2014

(FY)

(note 1) Frequency rate = (No. of casualties / Total actual work hours) x 1,000,000(note 2) The calculation for fiscal 2014 covered full-time employees andtemporary staff at Furukawa Electric and 37 Group companies in Japan.
See page 59 for companies included in the calculation.
(note 3) Data on all industries and the whole manufacturing industry is from
Ministry of Health, Labor and Welfare survey results

During the period from fiscal 2005 to 2006, we once
again investigated workplaces that previously handledasbestos products and we organized medical
examinations focused on asbestos for all relevant

Meanwhile, the 2014 accident frequency rate for theemployees. We also sent out notices urging retired

whole Group including overseas Group companies was

employees who worked at the relevant sites to undergo

1.65. This included accidents both resulting in and not

medical examinations.

resulting in time off work.

As of March 31, 2014, three people have been
confirmed as being involved in industrial accidents（anyHealthcare for Employees Working Long Hours

person also died）, and symptoms have been detected
in nine（all retired）.

In accordance with the Guidelines issued by the Labor
Standards Bureau entitled “Measures to be Taken by
Employers to Prevent Health Impairment Due toOverwork”, we strive to manage the health of employees

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

who work long hours by implementing strict limitations
on working hours based on the results of healthcheckups and by arranging consultations for such

CSR
http://www.furukawa.co.jp/english/csr/index.htm

workers with industrial physicians.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201543

Initiatives for Society

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

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

Implementation of Private Sector Training
for Teachers (note)
From July 30 to August 1, 2014, nine teachers from

Main programs
Day 1 (Theme: Social Responsibility)

sector training. Throughout the three days of exercises,

1. Group philosophy, CSR initiatives
2. Business continuity management
3. G roup’s safety & environment initiatives, safety
activities

factory visits, and educational training experience, theyDay 2 (Theme: Safety & Environment)

appreciated the pleasure and sense of achievement thatenvironmental activities, human resource development

1. Involvement with safety, environment, communities
2. Practice in safety education center
3. Factory visit
4. Visit to special subsidiary Furukawa New Leafand so on.

Day 3 (Theme: Education)

elementary schools, high schools and special-needs
schools in Tokyo and Yokohama underwent privateawareness gives as they learned about the social
responsibility of schools and companies, safety and1. Overview of CSR education
2. Overview & experience of in-house employee training
3. Review

Practical experience in “Anzen Dojo”(safety education center)(note) S ponsored by the Japan Institute for Social and Economic
Affairs. The aim is to deepen the teachers’ understandingof things such as the ideas behind corporate activities,
approaches to human resource training, approaches tosocial responsibility obligations and environmental issues.
It is hoped that teachers will then pass on their experienceto their pupils during lessons, and also apply them to theirschools’ management in future.

Most lasting impression (Selected from post-training
questionnaire) etting targets, conducting verification, and★S
improving operations are similar, albeit done indifferent ways, in both schools and companies.
 ompanies have an attitude of striving for★Cthoroughness.
“Pointing and naming out loud” at street crossing

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FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

★ I realized again that every small thing leads tosomething very large.

Initiatives for Society

CSR Awards
Sixth CSR Awards
Furukawa Electric established the CSR Awards torecognize the social contribution or environmental
preservation efforts of our subsidiaries that notablySocial Contribution Award
Furukawa Electric Autoparts Central Europe,s. r. o. (FACE), Czech Republic

exceed their regular business. CSR Award-winning

FACE has been continually supporting Slunickoc omp a ni e s w or k on a d a il y b a s is t o c on tinue(Czech for sunlight), an organization that helps disabledcontributing to society through these activities.

young people, since 2004. FACE and its employees
purchase handmade products from Slunicko including

Social Contribution Award
Furukawa New Leaf Co., Ltd. (note)

Christmas cards, floral pillows, and scarves. It also
donated money to buy a car specially customized fortaking disabled children to and from school. In 2014, theFurukawa New Leaf has three branches in Hiratsuka,

company also started to commission the children to

Chiba, and Mie to promote the employment of disabled

conduct simple tasks at its plant. The idea is to provide

people. It employs 50 people in all, including 39 disabled

them with a place to work and gives them confidence,people of whom 31 are severely disabled. It has

which will have a positive effect in future. In addition, theprovided support and cooperation for various plants

company employs six full-time staff with disabilities.

since its establishment in 2004, with a focus on in-plant

FACE believes these activities blend in with the local

cleaning. The company’s main duties are cleaning

community and will transform the lives of these people

meeting rooms, lobbies, corridors, staircases,in future.

bathrooms, and on-site and external roads. Recently,
however, they are taking on new duties that evend i s a b l e d p e o p l e c a n d o, s u c h a s d i s m a n t l i n gcommunications equipment parts and wires, shredding
document, and so on. The company also supports the
future employment of disabled children by receiving
pupils from a neighboring school for the disabled to takepart in work experience training.
(note) Special subsidiary of Furukawa Electric Co., Ltd.
Specially customized car bought with donations(with the Furukawa logo on the rear door)

Cleaning inside a plant (Hiratsuka Works)

Working inside the Slunicko facility

Practicing for the Abilympics, a national workskills competition fordisabled people (Mie Works)

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201545

Initiatives for Society

ach
e
n
i
s
e
i
t
i
v
i
t
Ac
re g i o n
Activity topics

Furukawa Electric Group
conducts various activities ineach region.

Nuturing future generations
Supported and cooperated on work
experience for schoolchildren of all ages
•Furukawa Electric (Chiba Works, Hiratsuka
Works, Mie Works, Nikko Works)•Furukawa Electric Power Systems•Furukawa Logistics•Okano Electric Wire

Living in harmony with thenatural environment
Participated in local environment
beautification campaign•Furukawa Electric (Chiba Works, Hiratsuka
Works, Mie Works, Copper Tube Division)•Tohoku Access Cable •KANZACC•SHODENSHA •Furukawa Sangyo•Furukawa Precision Engineering•Furukawa Logistics•FURUKAWA TECHNO MATERIAL•FURUKAWA ELECTRIC ECOTEC•Furukawa Magnet Wire
•Furukawa Nikko Power Generation

Cutting grass in neighboring children’s playground together with
Hoso Resident’s Association (Furukawa Precision Engineering)

Parent-child environmental class of the
Yamato Friends of the Environment Group(Okano Electric Wire)
Shonan Coast Cleanup Campaign run by the Labor Union Young
Women’s Association (Hiratsuka Works, Furukawa Electric)

Promotion sports and culture
Participated in, sponsored, andprovided a venue for sporting events•Furukawa Electric (Hiratsuka Works, Mie
Works, Nikko Works, Copper Foil Division,
Copper Tube Division)•The Furukawa Battery

Hosted, participated in, and supported
festivals

Entered two teams in Kameyama City longdistance relay race (Mie Works, Furukawa Electric)•Furukawa Electric (Hiratsuka Works, Mie Works, Copper Foil Division)•Furukawa Electric Power Systems •Furukawa Nikko Power Generation•KANZACC •Furukawa Magnet Wire
•Tohoku Access Cable •The Furukawa Battery

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FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 2015

Initiatives for Society

Living side by side with local communities
Conducted beautification activities
outside premises

Supporting and working with NPOs
and special-needs schools•Furukawa Electric (Nikko Works, Copper
Foil Division)•Furukawa Electric (Chiba Works,
Hiratsuka Works, Mie Works, Nikko Works,
Copper Foil Division, Copper Tube Division)•NTEC •Okano Electric Wire
•Furukawa Electric Industrial Cable•FURUKAWA AUTOMOTIVE SYSTEMS•FURUKAWA C&B •Furukawa Logistics•FURUKAWA ELECTRIC ECOTEC•Furukawa Magnet Wire

Regional exchange meeting with NPO Habataki(Copper Foil Division, Furukawa Electric)

Participated in regional exhibition•Furukawa Electric (Chiba Works,
Hiratsuka Works)

Off-site cleanup activities (Mie Works, Furukawa
Electric & Furukawa Magnet Wire)

Eco Messe 2014 in Chiba (Chiba Works,
Furukawa Electric)

Other activities
Donated and raised funds for charities•Furukawa Electric (Nikko Works) •Okano Electric Wire
•The Furukawa Battery •Furukawa Nikko Power Generation•Miharu Communications

Alongside our Group’s basic social
contribution policy, Furukawa Electric has
given much consideration to programs thattake advantage of our uniqueness, onthemes that are of deep concern to ourDonated blood•Furukawa Electric (Yokohama Works, Hiratsuka Works)•Furukawa Precision Engineering •The Furukawa Battery

employees.
As well as various ingenious communitybased activities by our Group companies
and Furukawa Electric’s various works,

Conducted factory
tours for employees’
families•Furukawa Electric(Chiba Works, Copper
Tube Division)•Furukawa Magnet
Wire

Challenges and Future Policy

research laboratories, and branches, in fiscal
2014 we implemented private sector training
for public school teachers. We are also
progressing toward the creation of a scienceeducation program with visits to schools
using our company’s unique technologies as
Employees’ families touring a factory(Chiba Works, Furukawa Electric)a teaching resource.

FURUKAWA ELECTRIC GROUP SUSTAINABILITY REPORT 201547