Initiatives forSociety
The Furukawa Electric Group values
communication with all stakeholders
throughout its corporate operations.

28 Relationship with our Customers
29 Relations with our Shareholders and Investors
30 Relations with our Suppliers
31 Relations with our Employees
35 Involvement with Society and
Local Communities

27 Furukawa Electric Group CSR Report 2009

Initiatives for Society

Relationship with our Customers
Furukawa Electric responds to the diverse needs of its customers by maintaining and improving the quality of its services
and operations through an unceasing effort for technological innovation and effective quality control.

Results of Quality Improvement
Activities for Fiscal 2008

Furukawa Electric Quality Control Activities
The Organization for Improving Quality Levels
To ensure consistency in quality across the Company, we
have established the Central Quality Control Committee tooversee quality management groupwide under the direction of
the President. We have also set up Divisional Quality Control
Committees with direct links to the heads of each divisionand make every effort to maintain and improve the quality ofour products, services and operations so as to offer continual
quality assurance.

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

As part of the ongoing range of quality improvement
activities we are currently undertaking, we have managed
to significantly reduce customer complaints. We havesuccessfully reduced complaints to 18% of levels in fiscal
2001 (as of fiscal 2008). Demand from customers for morediverse and sophisticated decryption has led Furukawa
Electric to mobilize a wide range of technology and knowhow, enabling us to create value for customers. We havereceived glowing feedback from our customers for these
activities and their results, and have even received awards
from numerous clients, including a certificate of appreciationfrom Toyota Motor Corporation for our quality control activities
related to products such as wire harnesses for automobiles.
Customer complaints (fiscal 2001 = 100)
(%)
100

100

80

73

60

Quality control organizational structure
President

47
40

42

35

28

27

20

Central Quality Control
Committee

Quality Control Management
Meeting

Chair: CPO
Members: Division heads
Organizer: Head of the Quality
Promotion Department

Members: Quality Control Managers
from individual divisions
Members: Quality control supervisorsfrom each division

18

0

2001

2002

2003

2004

2005

2006

2007

2008 (Fiscal year)

Reacquisition of JIS Mark Certification
Divisional heads

Affiliated companies

Quality Control Manager
Divisional Quality Control Committees

QC Circle Activities and FR Proposal Activities
We seek to continuously improve our quality control
techniques through QC Circles, small group-based activities
involving all employees that harness QC (quality control)
techniques. Debriefing sessions are held at individual works
as well as on a company-wide basis to report the result ofactivities. Such sessions have grown substantially in recent
years due to the inclusion of overseas affiliate companies.
FR proposal activities involve employees submitting ideas on
how to improve operations. Proposals are then implemented
and improvements made in an effort to fundamentallystrengthen the Company’s business. Such activities continue
to yield substantial results each year. FR proposal was coinedfrom the “F” of Furukawa Electric and the “R” of renewal,
reform and rationalization.

Considering a case that occured in another industry,
Furukawa Electric conducted a complete inspection of
the current status of performance tests required under
the Japan Industrial Standards (JIS standard). The
results revealed that testing methods other than those
designated by the JIS standard were being used to
calculate performance data for some of our copper andcopper alloy sheet and tube products. We voluntarily
reported this finding to the certification organization andhad our JIS mark certification revoked in August 2008.
We subsequently reinforced our testing andassessment facilities, reviewed the management systemof the relevant division, and completed internal corrective
measures by September 2008. Following the six-month
performance period designated by the JIS standard,
we underwent a certification audit in March 2009 andre-obtained certification in April 2009. We extend our
deepest apologies for any concerns we may have caused
during this period to our direct customers and theircustomers as well as other stakeholders.

Furukawa Electric Group CSR Report 200928

Initiatives for Society

Relations with our Shareholders and Investors
Furukawa Electric engages in IR (investor relations) activities based on two-way communication with our shareholders
and investors in an effort to contribute to society and enhance our value as a company.

Information Disclosure Policy and IR
Framework
Furukawa Electric discloses information in a timely andappropriate manner in compliance with the Timely Disclosure
Rules set forth by the Tokyo Stock Exchange. We haveestablished our own Regulations on the Timely Disclosure of
Corporate Information, and any decision on or occurrence ofimportant corporate information requiring timely disclosure
is promptly reported to the manager of the Investor & Public
Relations Unit, which serves as a liaison office for disclosure.
In turn, the manager discloses information after obtaining
internal approval required under the Regulations.

Relations with Individual Investors
In fiscal 2008, we held plant tours for individual investors forthe first time. A total of 168 investors chosen by lot from 1,570
applicants experienced Furukawa Electric’s current and futuretechnologies by observing the manufacturing of optical fibers
and electric cables and experiments on superconductivity.
We also participated in company briefings for individual
shareholders organized by the Nagoya Stock Exchange
and presented our outlook on corporate performance. As ofthe end of March 2009, we had a total of 69,549 individual
shareholders (an increase of 578 on the previous year),accounting for 29.06% of company shares.
Trends in shareholder distribution

Relations with Institutional Investors
and Securities Analysts
In addition to holding management briefings (covering interim
and year-end results and medium-term plans) for institutional
investors and securities analysts, we actively encouragecommunication all year round. Through results briefings,
overseas roadshows and other activities, we engaged incommunication with a total of 1,076 institutional investors andsecurities analysts over the course of fiscal 2008 (an increaseof 27% compared to fiscal 2007).

Securities firms, etc.

Individuals

Securities firms, etc.

Individuals

3.3%

28.7%

2.5%

29.1%

Overseascompanies

22.6%

Domestic
companies

7.4%

Overseascompanies

21.6%

January 1,
2008

Financial institutions

38.0%

Domestic
companies

January 1,
2009

Financial institutions

7.4%

39.4%

Plant tour

End of year briefing session for institutional investors
Superconductivity experiment during plant tour

Main IR activities in 2008
February

Third quarter earnings announced

March

Tours of overseas plants

April

Tours of domestic plants

May

Annual earnings announced; visits to European investors

June

General Shareholders’ Meeting; Shareholders’ Report issued

AugustFirst quarter earnings announced

September

Visits to U.S. investors

October

Plant tours for individual investors

NovemberInterim earnings announced

DecemberInvestor Conference

29 Furukawa Electric Group CSR Report 2009

Returning Profits to Shareholders
Our basic policy is to pay stable dividends without regard
to changes in the business environment. In fiscal 2008, we
upheld our basic policy despite the harsh environment of the
global recession and paid an interim dividend of 3.5 yen per
share and a year-end dividend of 2.5 yen per share, which
added up to an annual dividend of 6.0 yen per share andrepresented a year-on-year decrease of 1.0 yen per share.

Initiatives for Society

Relations with our Suppliers
Furukawa Electric strives to maintain cooperative relationships based on mutual trust with
suppliers through enhanced communication.

Striving to Ensure Optimum Purchasing
on a Steady, Ongoing Basis
Furukawa Electric’s purchasing policy is to establish strategic
relationships with suppliers to ensure optimum purchasing
on a steady, ongoing basis. We believe that cooperative
relationships with our suppliers will become even more
important for achieving sustainable growth. Furukawa Electric
has always sought to forge cooperative relationships basedon trust with each supplier by communicating our status andpolicies through Supplier Meetings and a Supplier Evaluation
Scheme. In addition to these efforts we are working on thefollowing initiatives.
Study Group on Subcontracting Transactions
We believe today’s severe economic conditions make iteven more important to forge sound relationships with our
suppliers through fair transactions that comply with rules andregulations. As part of this effort, we have held Study Groups
on Subcontracting Transactions for the Furukawa ElectricGroup aimed at legal compliance as a training focus for theentire Group. We intend to continue similar efforts in the future.
Formulation of BCP in Procurement Activities
We have started developing a BCP (business continuationplan) for our procurement operations that is based on theassumption of a major disaster. We are setting up a systematic
framework for compiling data from all suppliers on theirsituations, which we currently obtain from them separately,
to quickly discern the overall picture in the event of a disasterand to update our risk management system and minimize
obstacles in maintaining procurement operations under the
worst-case scenario.

Supplier Meetings and Supplier
Evaluation Scheme
Furukawa Electric strives to forge cooperative relationships
with suppliers by regularly holding Supplier Meetings, by
evaluating the status of transactions under the Supplier
Evaluation Scheme and by providing feedback on the results.
At the Supplier Meetings, we provide an overview of theCompany, outline our purchasing policy and explain the
management strategy of each company to enable suppliers togain a deeper understanding of our operations. In the Supplier
Evaluation Scheme, we evaluate suppliers on the basis ofquality, technology, price, delivery system, degree of social
contribution and financial condition, and then hold meetings
to provide feedback on our findings. We explain and discuss
results during these meetings to more closely align ourawareness of procurement activities.
In fiscal 2008, we held a Supplier Meeting in September,which was attended by 100 of our major suppliers. We also
evaluated approximately 430 companies under the Supplier
Evaluation
Scheme andconducted
feedback
meetings.
We intend tofurther strengthen
our relationships
in the future.
This year’s Supplier Meeting

Promoting CSR Activities in Relation to
Procurement
Furukawa Electric Purchasing Policy (Outline)• We will establish strategic relationships with
suppliers to ensure optimum purchasing• We will guarantee the reliability and safetyof materials and supplies and their steadyprocurement• We will employ purchasing methods closely
linked to production methods• We will implement global procurement• We will engage in green procurement andenforce compliance

Furukawa Electric has been promoting compliance initiatives
as part of the procurement of materials and supplies inaccordance with the Furukawa Electric Group Action
Guidelines. Work is currently underway to organize past
initiatives and policies toward developing CSR Procurement
Guidelines. Looking ahead, we plan to expand internal CSR
procurement operations into activities that regard the entire
supply chain. Furthermore, we will respond to customer
requests to avoid using resources produced by mines that
disregard human rights and the environment, or “dirty mining,”by continuing efforts such as requiring refiners to demonstrate
ethical judgment in selecting mines.

Furukawa Electric Group CSR Report 200930

Initiatives for Society

Relations with our Employees
The Furukawa Electric Group strives to create a varied personnel system and pursues health and safety activities toremain a corporate group that motivates its employees and fills them with pride.

Personnel Management Policy

Status of Employment

Our basic personnel management policy is geared toward
creating human resources who are capable of putting fiveprinciples set out in the Furukawa Electric Group Credo into
practice. If individual employees abide by applicable laws
and rules, act in accordance with their social and moral
responsibilities and interact with others fairly and honestly, we
will be able to establish safe, healthy working environments
and workplaces that are free from irrational discriminationand harassment. We believe that this is crucial in order to
get the most out of the abilities that our employees have tooffer. Based on these foundations, we are aiming to bringout employees’ creativity by devising a personnel systemthat will harness employees’ various abilities and individual
personalities, through initiatives such as equal treatment
irrespective of age or gender, and support schemes to enable
employees to achieve a work-life balance.
By combining all of our employees’ individual abilities,
creating jobs suited to current needs and providing safe
products, we are striving to contribute to a sustainable society
and create a company that both motivates its employees andfills them with pride.

Recruitment

Overview of personnel system

Employment for People with Disabilities

Management philosophy
Management policy

Management strategy

Becoming a strong organization
Invigorating individuals

Sharing directions, combining strengths

Personnel system based on merit and performance
Incentives for employees
Challenging
settings

Performance
evaluation based on
management by
objectives

Setting
objectives

Motivating
system oftreatment

Evaluation ofcontribution
levels

The following table summarizes the number of employees
Furukawa Electric has recruited over the past five years. We
strive to secure personnel who will serve as the driving force
for sustaining and developing our business into the future.
We therefore seek highly creative people who demonstrate
a strong ethical foundation and the ability to deliver results.
We are also actively recruiting foreign citizens to support the
globalization of our business.
Recruitment figures

Specialized
staff

Professional
staff

Fiscal
2005

Fiscal
2006

Fiscal
2007

Fiscal
2008

Fiscal
2009

Male

30

55

81

84

75

Female

5

8

16

17

12

Total

35

63

97

101

(87)

Foreignnationals

0

2

1

1

4

Male

0

73

49

86

38

Female

0

0

1

1

0

Total

0

73

50

87

38

* Total figures for fiscal 2009 do not include mid-career recruitment

To increase its employment ratio of people with disabilities,
Furukawa Electric established Furukawa New Leaf Co., Ltd.
as a special subsidiary in 2004 to actively employ people withlearning disabilities. The company handles cleaning operations
within the compounds of our works and currently employsa total of 23 people with disabilities, 10 at Hiratsuka Works
and 13 at Chiba Works. The company also provides detailed
guidance to assist people with disabilities in becoming
independent members of society.
Although our employment ratio of people with disabilities
was 1.86% in the previous fiscal year, exceeding the statutory
target, we intend to work on further expanding this group of
employees, primarily through our special subsidiary.
Ratio of employees with disabilities

Multi-track
qualification
systemClear
expectations ofresponsibilities

Setting
objectives
as anorganization

Appointmentof the righthuman resources
to the rightpositionsAppointments
based onmerit
Arrows indicate directions
objectives are executed

31 Furukawa Electric Group CSR Report 2009(%)
Evaluation
feedback

Enhanced
self-awareness

2.00
1.80

1.75
1.50

Skillsdevelopment

1.25

1.49

1.54

2005

2006

1.86

1.26

1.00
Activelyutilizingeducational
curriculum

0

2004

2007

2008

(Fiscal year)* In April 2004, the exclusion rate set out when the rate of employment was calculated
was lowered, reducing the rate of employment.
* Average rate of employment for people with disabilities on the first of each monthfrom April to the following March.

Employment of the Elderly
We operate a reemployment scheme for any employees aged
60 or over who are in good health and wish to remain in work.
The duration of reemployment is being increased in phases,
with employees entitled to be reemployed up to the age of 65.
In fiscal 2008, 28 people (48% of employees who hadreached the retirement age of 60) applied for this program,and a cumulative total of 74 had been reemployed as of theend of fiscal 2008.

Fair Evaluation, Human Resource
Development and Treatment
Employee Assignment Evaluation and Treatment
We make every effort to assign employees and place themin positions based on their individual motivation and abilities
under the concept of equal opportunity. As part of such
efforts, we operate a range of consultation schemes and offer
opportunities for employees to reflect on their career goals.
In terms of employee evaluation and treatment, we haveintroduced a personnel incentive scheme to enable employees
to be evaluated and treated fairly depending on the abilities
that they display and their performance. We are also training
mangers in performance evaluation and are working on ways
for improving the way in which the system is run.

Human Resource Development, Education and Training
Furukawa Electric believes that our strength as a company
stems from the synergy of the abilities of each and every oneof our employees and that their abilities improve on a practicallevel through their day-to-day work.
In addition to giving individuals the chance to grow anddevelop through their work, we encourage enthusiastic
employees to develop their own skills by providing training,
distance learning and support to help them obtain qualifications.
In fiscal 2006, we launched the Global Business Leader
training program to aid the development of personnel andthus carry our business forward into the future. The program
has produced workers who are demonstrating their abilities in
key positions at affiliated companies in Japan and overseas.
Also in fiscal 2008, we implemented a 360-degree evaluationand follow-up training for employees in middle-management
positions. And we are working to enhance the abilities of our
mid-career employees by analyzing middle-management
characteristics and applying them to various training programs.
We intend to bolster the capabilities of the manufacturing
worksite through the Conference for Worksite Innovation andreinforcing initiatives for effectively and efficiently creating
human resource development programs and training curricula
as well as identifying and solving problems.

Diverse Work Patterns and Work-Life
Balance Support Initiatives
As well as striving to enhance our employees’ working lives,
Furukawa Electric cooperates with labor unions to actively
support their personal lifestyles and help them stay in good
health through educational and other initiatives.
In fiscal 2007, Furukawa Electric was accredited as acompany that actively supports the development of the next
generation. In line with our second phase action plan (fiscal
2007–09), we significantly relaxed requirements to make iteasier for employees to take maternity/paternity leave. We
also established a system for theprovision of financial support whereby
employees can use carried-overleaves in place of maternity/paternity
leave or for the purpose of looking
after their children. We intend to“Kurumin”—Certification markimplement the second phase actionof an accredited company
plan step by step.
that actively supports thedevelopment of the next
In addition, during fiscal 2008 we
generation
established a new program for amandatory two-day annual leave assigned by the Company(simultaneous leave) to reinforce our efforts to reduce total
work hours while also pursuing other initiatives to promote
diversity (human resource strategy for benefiting from diversity)
by becoming a member of the nonprofit organization J-Win
and actively participating in external networks.
Diverse work pattern and work-life balance support schemes
Scheme/educational
initiative
Flexible working
hours

Purpose and details
We provide lifestyle support to strike a work-life balance.

Annual paid leave

We provide employees with up to 25 days annual paid leave (e.g., if an
employee has been with the company for 11 years or longer). Annual
leaves averaged 12.1 days per employee in fiscal 2008.

Consecutive leave

We allow all employees to take three days consecutive leave every year
providing that it does not exceed their annual paid leave entitlement.
Employees can obtain an additional two days every five years (up to a
maximum of five consecutive days).

Carried-over leave

Up to ten days of annual paid leave can be carried over, for up to five
years, and can be used if an employee is ill, providing nursing care, onmaternity/paternity leave or looking after their children.

Maternity/paternity
leave (and reduced
working hours)

We provide support over and above legal requirements to enable
employees to strike a work-life balance, including partial pay during
maternity/paternity leave and the option for employees to work reduced
hours thereafter until their child reaches elementary school age. The
program was applied to 2 male and 18 female employees in fiscal 2008.

Nursing care leave(and reduced
working hours)

We provide support over and above legal requirements to enable
employees to strike a work-life balance, including enabling employees totake nursing care leave (or the option of working reduced hours) for up
to a year at partial pay. No applications were received in fiscal 2008 (theprogram was applied to 1 female and 2 male employees in fiscal 2007).

Retirement
seminars

We, labor and management, jointly organize seminars every year toprovide support to help middle-aged and older union members (those
aged 50 or older as a rule) to make the most of their time in work andplan for their life after retirement.

Middle-age
seminars

We, labor and management, jointly organize seminars every year toprovide individual support to help middle-aged employees (those aged
40 or older as a rule) to stay fit and healthy, including measures toprevent illness.
Furukawa Electric Group CSR Report 200932

Initiatives for Society

Relations with our Employees

Occupational Health and Safety Activities
Furukawa Electric System for Promoting Health and Safety

Furukawa Electric Safety Activities

Furukawa Electric pursues health and safety activities,
recognizing our social responsibility to make the utmost
effort in these areas and to develop a comfortable working
environment. The Central Health and Safety Committee chairedby the Company’s Chief Social Responsibility Officer, the officer
in charge of safety, formulated the Company-wide Health and
Safety Management Guidelines and promotes health andsafety activities on a company-wide basis. Individual Health and
Safety Committees chaired by the head of the respective works
are also in place at each works to implement programs basedon the Guidelines as well as independent works’ activities. We
strive to raise the level of safety standards at each works byestablishing and following up on standardized company-widepriority safety targets under the Guidelines.
In addition, we established the Safety Management Liaison
Meeting in July 2007 to oversee safety issues at Furukawa
Electric Group manufacturing companies to secure safety
across the Group.

Anzen Dojo
We installed an “Anzen Dojo” (safety education center) at all
the works. These facilities include displays of basic safetyknowledge and examples of accidents as well as equipment
and facilities for
simulating dangerous
situations, helping
employees to mastersafe behavior throughexperience. We aretraining all employees
including new recruits.

Furukawa Electric system for promoting health and safety
Central Health and
Safety Committee
Safety and Environmental
Promotion Department

Health and Safety Committees(Works)Health and Safety Staff Subcommittee

Working Environment Subcommittee

Workplace Health and
Safety Committees (Plants)

Safety Management Liaison Meeting

In fiscal 2008 (January to December 2008), the frequency of
accidents resulting in the suspension of operations was 0.14
for Furukawa Electric on a standalone basis and 0.65 for theentire Group.
Frequency of accidents resulting in the suspension of operations
1.85

1.95

1.90

1.83

1.75
All sectors

1.50

1.00

0.99

1.01

1.02

1.09
0.74

0.50

0.54

1.12
Manufacturing

0.65

0.52

All groups

0.27

0.25

0.14
Furukawa Electric

0

2004

2005

Company-wide Health and Safety Group Activities
Presentation Meeting
Every year, the manufacturing division undertakes healthand safety improvement activities at each workplace. The
37th Company-wide Health and Safety Group Activities
Presentation Meeting was held at Nikko Works in July. Elevengroups representing each work presented the results of theiractivities. Special recognition was awarded to the team that
improved copper processing by applying risk assessment
methods and thegroup that improved
facility maintenance byanalyzing “hiyari-hatto”(close call) incidents
during maintenancework.
Company-wide Health and Safety Group Activities
Presentation Meeting

Industrial Accidents

2.00

Anzen Dojo (experiencing heights)

2006

33 Furukawa Electric Group CSR Report 2009

2007

2008

(Fiscal year)

Obtained Certification from the Japan Industrial
Safety & Health Association (JISHA)
We are engaged in a group-wide effort to establish
management systems related to industrial health and safety.
In January 2009, Chiba Works was first in the Company
to obtain JISHAcompliant OSHMS
certification from theJapan Industrial Safety& Health Association.
We aim for certification
at other works overthe next three years.
Certificate

Safety Management Liaison Meeting
The Safety Management Liaison Meeting is held twice a year
as a forum for the exchange of information, during which thestatus of safety activities at each company is reported. It also
facilitates the timely exchange of information on the nature of
accidents and countermeasures for accidents that occur atGroup companies. In fiscal 2008, we conducted plant tours at
Furukawa Electric’s Nikko Works and Furukawa-Sky’s Fukui
Plant, held safety seminars led by safety consultants andconducted plant safety inspections.

Healthcare for Employees Working Long Hours
In line with the Labor Standards Bureau’s guidelines,
Measures to be Taken by Employers to Prevent Health
Impairment Due to Overwork, we are focusing on efforts toensure that any of our employees working long hours stay ingood health, through measures such as (1) enforcing strict
work restrictions based on the results of medical examinationsand (2) operating a consultation system whereby employees
working long hours are seen by an industrial physician.

Safety tour

Furukawa Electric Initiatives on Health
Mental Health Education
Our company-wide mental health measures have beenpromoted since 2002 and are based on the Guidelines for
Promoting Mental Healthcare in the Workplace issued by
the Ministry of Health, Labor and Welfare. Furthermore, wehave been holding lectures by outside experts since 2005 inaddition to basic education provided by industrial physicians
and management staff. We also conducted advanced training
courses for management staff in fiscal 2005 and 2006 as well
as stress control seminars as stress prevention support in
fiscal 2007 and 2008 for employees between the ages of 30
and 35.

Promoting Separate Smoking Areas
In accordance with a 2003 notification, Concerning the
Guidelines for Measures on Smoking in the Workplace, issued
by the Director-General of the Labor Standards Bureau, wedesignated more than 70 smoking rooms in fiscal 2004 in aneffort to isolate smoking areas. As a result, the percentage ofsmokers among male employees on a company-wide basis fell
from 53.3% in fiscal 2002 to 40.6% by fiscal 2008. We intend
to continue to make every effort to prevent passive smoking in
the future, as well as actively promoting non-smoking.

Responding to the Pandemic Influenza Virus
Furukawa Electric’s Health Management Center took the
initiative in formulating a manual concerning the pandemic
influenza virus, implemented preventive training at each work,and stocked hygienic and medical supplies. The manual wastranslated into English, Chinese and Spanish and distributed
to overseas Group companies. We also implemented
measures in responseto the advancing
phase of the pandemic
such as by providing
information andprecautions throughthe publication of“Influenza Headlines.”

Responding to Asbestos-Related Health Issues
During the period from fiscal 2005 to 2006, we once again
investigated workplaces that previously handled asbestos
products and we organized medical examinations focused on
asbestos for all relevant employees. We also sent out notices
urging retired employees who worked at the relevant sites toundergo medical examinations. So far, symptoms have been
detected in one current employee and nine retired employees.
Also, a retired employee who had worked laying undergroundcables died from mesothelioma, and in 2006 this was
confirmed to be an industrial accident. We have notified retired
employees who worked at the relevant site regarding changes
to the requirements for issuing health cards in the wake ofrevisions to Occupational Health and Safety Regulations in
October 2007 and will continue to monitor the situation.

Medical questionnaire

Manual on the pandemic
c influenza virus

Furukawa Electric Group CSR Report 200934

Initiatives for Society

Involvement with Society and Local Communities
The Furukawa Electric Group is strengthening its actions under the Furukawa Electric Group Basic Policy on Social
Contribution Activities along the three dimensions of nurturing future generations, promoting sport and culture and livingside by side with local communities.

Basic Policy on Social Contribution Activities
In May 2008, we set out the Furukawa Electric Group Basic
Policy on Social Contribution Activities.

Furukawa Electric Group Basic Policy
on Social Contribution Activities
The Furukawa Electric Group will upholdand strengthen the bonds built up with local
communities over more than a century andconsistently and tirelessly undertake social
contribution activities, focusing on nurturing future
generations, promoting sport and culture and livingside by side with local communities as well as
contributing to society through its core operations,to help create a better world for future generations.

Communicating with the Local Community
Participation in Environmental Events
Eco-Messe 2008 in Chiba (September 2008, Makuhari Messe)
We participated in Eco-Messe 2008 in Chiba, a trade showon environmental efforts under the theme of preventing
global warming and preserving biodiversity for a sustainable
society. We offered exhibits and presentations on opticalfiber cables and related products that are indispensable forsuperconducting cables used in superconducting powertransmission and high-speed, broadband communications.
Current power cables account for as much as 5% of
all electric power generation, and our products reducetransmission loss by up to 25%. In our superconductivity
experiment exhibit area, we performed experiments todemonstrate how electric resistance falls to zero in liquid
nitrogen and how air contained in a balloon turns into a liquidstate. The experiments stimulated the curiosity of children,
our future leaders, and generated significant enthusiasm. We
also accepted ECO donations and presented supporters with

Superconductivity experiment corner: turning air inside a balloon into a liquid state

35 Furukawa Electric Group CSR Report 2009

goods related to the JEF United Chiba soccer team, which
we sponsor. We donated the money collected to the Chiba
Environmental Regeneration Fund.
Hiratsuka Environmental Fair (February 2008, Education
Center, Hiratsuka City)
The Hiratsuka Environmental Fair was held to present
awards to citizens and businesses who had engaged inoutstanding environmental efforts and to introduce theactivities of environmental groups and others through a panelpresentation.
Furukawa Electric provided exhibits and presentations onenvironmentally-friendly products, such as the Eco-Ace Plus
halogen-free wires and the MC-PET (micro-foamed PET)
ultra-high reflexivity material, which can reduce the number offluorescent tubes and save energy when used for lighting in
combination with LEDs.

Exhibit of environmentally-friendly products such as MCPET and eco wires

Interaction with Local Citizens

Local Community Clean-up Activities

Plum Festival in Kouracho, Shiga Prefecture (Furukawa AS)
On March 15, 40 Vietnamese women from FAPV (Furukawa
Automotive Parts (Vietnam)) who were training at Furukawa
AS participated in the annual plum festival organized by
the Kuretake Area Village Development Committee andcommunicated a joyful message through their songs.
The event was well-received by the people of Kouracho andprovided a valuable experience for the trainees as well.

We actively engage in clean-up activities in the local
communities in the vicinity of each of our works and plants, aswell as nearby coastal and riverside areas and other locations.
Clean-up Campaign Along Route 25 (Furukawa Electric,
Furukawa Logistics, Kameyama City, Mie Prefecture)
Kameyama City organizes clean-up campaigns in various
locations around town to preserve the natural environmentand raise awareness of town beautification. Furukawa Electric
participates as a corporate supporter of the Route 25, Suzuka
River and the Route 1 clean-up campaigns.
Nikko Ancient Cedar-Lined Road Clean-up Campaign(Furukawa Battery, Nikko City, Tochigi Prefecture)

Comments from a trainee from Vietnam“Practice was hard, but I was very glad we were able to give our performance.
It was a great experience to enjoy the plum blossoms, which we do not havein Vietnam, listen to the residents of Kouracho sing Japanese songs andexperience Japanese culture.”

Summer Festival (Mie Works)
Every year on the last Sunday of summer vacation, Mie
Works invites families of employees and local citizens to asummer festival. This year’s festival featured booths run bystaff and employees at affiliated companies, a Suzuka Drum
performance by the Suzuka Drum Preservation Association,and other events, such as the Yosakoi Soran Dance andfireworks. The drum ensemble raised the festive moodthrough performances such as the “Sound of Suzuka,” basedon images from the Suzuka Racing Circuit, and a work basedon the story of Daikokuya Kodayu, a boatman from Shiroko,
Ise, who washed ashore in Russia during the Edo era andlater contributed to the spread of Western learning in Japanas one of the few individuals at the time who had lived abroad.

Furukawa Battery’s Imaichi Plant participates in the Nikko
Ancient Cedar-Lined Road Clean-up Campaign to preserve
the cedar-lined road, which is a precious cultural asset andthe only location that has received a dual national designation
as a Special Historic Spot and a Special Natural Treasure.
Yamato Clean-up Campaign (Okano Electric Wire,
Yamato City, Kanagawa Prefecture)
We participated in the Yamato Clean-up Campaign, “Day forbeautification and clean-up,” on November 21, 2008, mainly
cleaning the streets around the plant and head office of Okano
Electric Wire.

Nikko Ancient Cedar-Lined Road Clean-up Campaign

Performance by the Suzuka Drum Preservation Association
Yamato Clean-up Campaign

Furukawa Electric Group CSR Report 200936

Initiatives for Society

Involvement with Society and Local Communities

Environmental and Social Contribution Activities
Activities for Preserving the Satoyama Environment
Preservation of the Kameyama Eco Forest (Mie Works)
In Kameyama City, Mie Prefecture, citizens, businesses andlocal government are collaborating in a five-year plan launchedin 2008 to develop a forest that enables people to walk, playand experience nature, based on the Kameyama Eco Forest
Environmental Improvement Vision. Furukawa Electric’s Mie
Works is participating in realizing this vision. During the Forest
Development Experience held on March 8, employees of
Mie Works and their families participated as volunteers andplanted 14 types of trees, including bayberry, Japanese maple
and wild cherry blossom.

Totoku Electric exterminated the plant in the neighboring
biotope-style citizen’s green park (Mihogaike Green Park).

Exterminating bur cucumber

Preservation of Satoyama—Oyama General Park,
House of Fireflies (Furukawa Logistics Oyama Branch)
Local citizens, the general public, corporations and the local
government are working together to revive the historic fireflyregion of western Oyama City so that fireflies will once again
return to the area from the historic site of Washi Castle andthe Oyama General Park. Furukawa Logistics’ Oyama Branch
participated in a
project organizedby the fireflypreservationgroup to remove
weeds from firefly
habitats.

Tree planting for the
Kameyama Eco Forest

Weeding project around the firefly habitat

Activities for Preserving the Ecosystem
Extermination of Bur Cucumber (Totoku Electric)
Bur cucumbers, which grow rapidly, destroying native
ecosystems and affecting animals and plants, have been
designated as an Invasive Alien Species by the Ministry of theEnvironment. In Nagano Prefecture, private organizations,municipalities and the prefectural government are cooperating
to exterminate bur cucumbers in local areas.

37 Furukawa Electric Group CSR Report 2009

Initiative for Supporting Career Education—Expressing the Appeal of Manufacturing Companies
The Furukawa Electric Group implemented an initiative forsupporting career education at a local high school to nurture
future generations—one focus of the Group’s social contribution
activities. The project is also intended to foster skills andknow-how for explaining the Group’s technology and products
in a way that is easy for the general public to understand.
In March 2008, Naohiro Seki, Manager of the Human
Resource Development Unit of the Personnel and General
Affairs Department, visited a high school in Kanagawa
Prefecture, his own alma mater, to present a lecture on thebenefits of working for a manufacturing company.
He described how students were connected to
manufacturing companies, introduced our main products andnoted that graduates of literature and science are engaged
at manufacturing companies. He offered an explanationof nanotechnology and the thinness of optical fibers andtheir transmission distances. The most popular parts of his
presentation were when students could touch our copper foil
products, optical fiber preform and cable core and observe anexperiment using shape-memory alloy.
He expressed the special appeal of manufacturing
companies in an
enjoyable waythat contributes
significantly
to supporting
careereducation.

Enthusiastic lecturer holding an optical fiber preform

Promotion of Sports and Culture
Supporting the Imaichi Youth Sports Cadet Relay
Competition

Awards from Outside Sources

Each year, Furukawa Circuit Foil (Copper Foil Division of
the Metals Company of Furukawa Electric Co., Ltd. since
October 2008) voluntarily participates in the annual Imaichi
Youth Sports
Cadet Relay
Competition.
We also provide
prizes forparticipants.

Railway 2007 Technology Development and Purchasing
Award for the Green Trough from East Japan Railway
Company

Imaichi Youth Sports Cadet Relay Competition

For the first time, we received the Railway 2007 Technology
Development and Purchasing Award from the financial division(materials purchasing section) of East Japan Railway. The
award recognized our contribution to global environmental
preservation and enhancing the safety of trough work by
developing a method by which PET bottle caps collected atstations are used as materials for green troughs (cable casings
used in railways, etc.) in a two-year project with East Japan
Eco Access Co., Ltd. of the East Japan Railway Group.

OthersSupporting Special-Needs Schools
Furukawa Circuit Foil receives students from the Imaichi
Special-Needs School for active learning programs. We also
participate on a voluntary basis in barbecue parties, nagashi
somen (flowing
somen noodle)
events, sports
festivals andeducationalpresentationsorganized by theparents.
Nagashi somen event at the Imaichi Special-Needs School

Furukawa Circuit Foil Social Contribution
Initiatives
Furukawa Circuit Foil organized a CSR Promotion Teamin February 2005 and appointed social contribution
leaders. Under the basic principle of contributing
to the revitalization and development of the local
community through the cooperation of the company
and employees, we have mainly been offering support
to welfare institutions and people with disabilities aswell as undertaking projects in cooperation with thelocal community. To encourage employee participationin volunteer activities, we invite lecturers from the social
welfare council and local nonprofit organizations twicea year in an effort to raise employee awareness. We
established the Volunteer Card System and Volunteer
Award System to encourage voluntary activities by
employees and support individual activities by presenting
awards once a year to employees who are actively
engaged in social contribution efforts.

Green troughFurukawa Electric Group CSR Report 200938