CSR Targets and Initiatives
Fiscal 2010 initiatives
For fiscal 2010, we defined four major challenges: first, strengthening overseas CSR activities; second, developing business continuity plans (BCPs) for use in the event of disasters; third, introducing CSR standards for purchases; and fourth, promoting social contribution activities. On the basis of these challenges, individual companies set CSR activity goals and took steps to meet them. The following explains some of our overseas activities and our actions related to the BCPs.
CSR targets and results during fiscal 2010 and issues for the future
A: Target achieved B: Target mostly achieved C: Issues remaining D: Not implemented
| Code of Conduct | CSR targets | Company | Initiatives during fiscal 2010 | Rating | Initiatives and issues for the future |
|---|---|---|---|---|---|
| 1.Product safety and quality | Proper actions on business continuity plans Adopting an advance plan as a division model Developing a medium-term plan for the entire company |
CITIZEN SEIMITSU | The division model conducted activities mainly in intangible aspects to meet requests from customers. With respect to the development and proposal of business continuity plans for the entire company, manuals and procedures were prepared. A medium-term plan was drawn up for full implementation in the following fiscal year. |
A | Expand activities in the division model to the whole company. Power generators have been added to the investment plan for the following fiscal year. Revise business plans, manuals and procedures in view of the issues on earthquake control measures. |
| 2.Business transactions | Reinforcement of green procurement initiatives Effective operation of the Compliance Committee on Subcontract Act |
CITIZEN MACHINERY | Green procurement initiatives were reinforced. Supplier briefings were held and a green procurement survey of environmentally-friendly products was completed. Effective operation of the Compliance Committee on Subcontract Act. Suggested improvements were implemented in response to an audit on subcontracting compliance conducted by the parent company. |
A | Improve the structure of green procurement and the Compliance Committee on Subcontract Act due to company consolidation. |
| 3.Communication and information management | Measures to prevent the unauthorized disclosure or leaking of trade secret information from CITIZEN ELECTRONICS or its suppliers Interviews with the trade secret managers of each departmentHaving retirees sign nondisclosure agreements and building lists of trade secrets for clarification |
CITIZEN ELECTRONICS | Actions to have retirees sign nondisclosure agreements have been undertaken primarily under the guidance of the personnel division, and the CSR Trade Secret Subcommittee Secretariat has followed up on these activities. Interviews with managers were not conducted. |
B | Systematically conduct the manager interviews that could not be conducted in the current fiscal year. |
| Disclosure of corporate information and appropriate management of information Maintenance and management of systems (internal control) (1) Thorough operation of regulations, (2) Implementation of internal audits Compliance with the Citizen Group Security Policy |
CITIZEN TOHOKU | In accordance with Article 13 of the Inventory Management Regulations which states that “when significant changes to inventory occur due to sudden accidents such as disasters, physical inventory taking is to be carried out immediately,” physical inventory taking was conducted at each department immediately after the earthquake to properly account for inventory. | A | ||
| 4.Environmental management | Energy efficiency improvement at works A target of raising the LED lighting ratio to 50% |
CITIZEN ELECTRONICS Subsidiary in China XUNKE ELECTRONICS |
LED lighting was introduced in the entrance, lobby, corridors for visitors, reception room, meeting rooms and offices. It now constitutes around 20% of all lighting in the new works. | C | Add LED lighting as soon as devices developed by CITIZEN ELECTRONICS arrive. |
| Prevention of emergency accidents Overturning and leakage during the transportation of effluents Outflow of unprocessed production effluents |
CITIZEN MICRO | Education and training: One of two annual sessions completed Training of multiple personnel: Two personnel currently secured Prepared procedural manual for effluent transportation Checks of records (wastewater analysis values) continuously conducted by senior personnel |
C | The second education and training session could not be conducted due to the earthquake, but since a lot was learned from the actual response during the disaster, this will be utilized in future initiatives. There were no major accidents in fiscal 2010 but there were many close calls. Activities to reduce the number of close calls will be carried out in fiscal 2011. |
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| Regular management of asbestos Survey of amounts of free-floating asbestos (Standard: Less than 0.5 fibers / liter) |
CITIZEN BUSINESS EXPERT | Confirmed that levels were below standard with regular measurements Conducted emergency measurements due to the earthquake and confirmed that levels were below standard |
A | Pay attention to airborne asbestos due to construction work, etc. during normal hours and continue to implement regular measurements. | |
| Compliance with Chemical Substance Management Regulations (1) Thorough management of newly introduced chemical substances (2) Compliance with laws and regulations concerning chemical substances (3) Promotion of environmental management at overseas factories |
CITIZEN FINETECH MIYOTA | A general management system for chemical substances was created, followed by the issuance and operation of the Chemical Substance Management Regulations. Changes were made to allow the electronic submission of applications for the introduction of new chemical substances. |
A | Continuously check the operational status of the Chemical Substance Management Regulations as one of the internal audit items concerning the environment. | |
| 5. Social contribution | Contribute to environmental conservation activities in local communities Environmental conservation activities (participation in tree planting ceremonies, etc.) Cleaning activities in areas around company premises (once a month) Promotion of pull-tab/eco-cap collection drives Participation in Ministry of Environment’s Challenge 25 Campaign (provision of information on ways to reduce CO2 emissions in companies and homes) |
CITIZEN ELECTRONICS FUNEHIKI | Participation in volunteer activities to plant rapeseed (15 members) Cleaning activities: once a month Eco-cap collection (September and January) Operation of summer and winter dress codes to reduce energy consumption Display of Challenge 25-related posters Environment Month (promotion and distribution of bottles for reuse) Ozone layer protection measures awareness month: display of posters Cooperation with blood donation drives (twice yearly) Acceptance of dual trainees Table tennis gathering (180 members participating) Activities to raise awareness of energy conservation (February) |
A | Monitor information on local activities and continue to actively work on social contribution activities in the future. |
| Contributions to local communities Participation in environmental campaigns (Lake Kawaguchiko/Mt. Fuji) Promotion of voluntary cleaning activities, etc. Dispatch of instructors to educational institutions Acceptance of pre-college students for work experience |
CITIZEN SEIMITSU GROUP | Participation in cleaning activities around Lake Kawaguchiko (359 members) and Mt. Fuji (241 members) (Citizen Semitsu) Dispatch of instructors to educational institutions (Citizen Precision Hachinohe) Acceptance of pre-college students for work experience (Fujimi) |
A | Continue activities according to the annual plan. | |
| 6. Employees | Certification with OHSAS 18001 Obtain certification by the end of December 2010 | CITIZEN ELECTRONICS Subsidiary in China XUNKE ELECTRONICS |
All employees underwent occupational health examinations at specific medical institutions. An audit questionnaire for individual occupational disease and hazard factors was prepared. Educational materials to improve occupational health knowledge were created. Preparation of labor contract occupational hazard notification materials Production workplaces with occupational disease or hazard factors submitted to monitoring and measurement for occupational disease or hazard by a specified medical institution Conducted lightening protection inspections on each building Conducted OHSAS internal audits Conducted first stage inspection Conducted second stage inspection Received certification (validity period: three years) |
B | Conduct internal audits for ISO9001, ISO14001, ISO14001 and OHSAS18001 for all departments from May to June 2011. Conduct consolidated inspection for ISO9001, ISO14001 and OHSAS18001 by a third part certification body in July 2011. |
| Preparation (medium-term plan) for the building of crisis management and risk management systems Preparations for the creation of a crisis management manual. |
CITIZEN FINETECH MIYOTA | Towards the preparation of a business continuity plan manual for natural disasters, started by considering the general affairs-related risk response path. | C | Use the opportunity afforded by the Great East Japan Earthquake to reinforce and speed up measures to deal with general affairs-related risks. | |
| Improving employee skill in taking safety precautions Encouraging employees to acquire qualifications, ongoing provision of intradepartmental education Implementing improvement activities concerning safety Understanding and responding to business continuity plans. |
CITIZEN WATCH (Circuit Department) |
Class 4 Handling of Dangerous Goods (4 members), Instructor (1 member), Class 2 Watch Making and Repair (2 members), Class 2 Semiconductor Chip Fabrication Technician (1 member) Conducted unique disaster prevention training for the circuit manufacturing process. Liquid nitrogen, liquid handling workshop (11 members), high-press gas handling course (many participants) Prepared business continuity plan guidelines for the circuit manufacturing process. Commenced circuit process safety precaution activities. Confirmed display and conformity of switchboard and piping (AIR, N2, VAC) |
B | Systematically reinforce numbers of qualification holders to establish a bottom-up structure. Promote the elimination of unsafe practices and unsafe situations, and build a safe workplace that will not cause accidents or disasters at production sites. Make improvements to the details of business continuity plans including for major earthquakes and rolling blackouts. |
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| 7. Antisocial behavior | Dealing with antisocial organizations or individuals Membership in special violence prevention association and coordination with local police authorities through the active exchange of information and other efforts Conducting enlightenment activities through group-wide training sessions and other initiatives |
CITIZEN HOLDINGS | At the Tanashi chapter of the special violence prevention association (under the jurisdiction of the police department), a general meeting was held in May and a training session in January with the aim of exchanging information and promoting friendship between member companies. | B | Timely dissemination of information concerning antisocial forces to Group companies |
| Response to antisocial forces under normal circumstances Establishment of umbrella organization and enlightenment activities |
SILVER DENKEN | Prepared Antisocial Forces Handling Regulations and a system diagram, and disseminated the information to employees after obtaining committee approval. | A | Continue the goals and measures for fiscal 2010 in the future. Give future consideration to new goals and priority measures for fiscal 2011. |
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| 8. Overseas local development | Work on CSR activities at China-based works and strive to be a company respected to the local community Employee safety Compliance with laws Environmental betterment initiatives |
CITIZEN TOHOKU Subsidiary in China ASTAR PRECISION |
As a result of placing an emphasis on safe work education in response to the local district government’s “Aptitude Training Campaign for One Million Employees” the on-site injury rate fell 18%. Clean production activities will continue in the future. Commended as a part of the local municipal government’s “Phoenix Urban Waste Reduction” activities (received monetary incentive). |
A | Safety: Eliminate of hidden dangers at production sites Welfare: Introduce housing fund system Environment: Continue with clean production activities (curb grinding powder emissions) Production and quality improvement activities (improved credibility among customers) |
| Response to changes to laws, regulations and systems Handling of environmental regulations (wastewater, air, etc.) Handling of import and export (trade control) regulations Handling of program-related risks |
CITIZEN SEIMITSU Subsidiary in China CITIZEN PRECISION GUANGZHOU |
Environmental regulations: Handled wastewater/air regulations and measurement of environmental indicators. Engaged in management of regular wastewater and accommodated zero wastewater discharge requirements. Import/export regulations: Conducted training for relevant staff aimed at enhancing management systems. Program-related risks: Enrollment in labor insurance expanded after consultation with authorities. |
B | Further enhance handling of laws and programs | |
| Respect local culture and customs, and seek exchanges with employees Holding of gatherings with local employees and their families (twice yearly) |
CITIZEN ELECTRONICS Sales Subsidiary in Germany C-E (DEUTSCHLAND) GmbH. |
The gatherings proved profoundly meaningful for understanding the local culture (ways of thinking) and promoting exchanges. Held a party in June to celebrate the company’s 40th anniversary Held a Christmas party in December |
A | Hold other gatherings and events on a smaller scale in the future. | |
| Working closely together with overseas production premises Development of personnel for equipment maintenance and management at overseas sites Support activities associated with restructuring in South China |
CITIZEN WATCH | Plan to introduce production equipment field surveys and equipment management systems for overseas factories. After partial revisions, the systems are scheduled for introduction in May 2011. Conducted quality audits on overseas finished product factories and provided support for delivery quality handling. |
A | Prepare and implement a training plan for improving maintenance workmanship at overseas factories Continue to implement quality evaluations of exterior component procurement |
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| Improved employee retention rate and innovative employment systems Seek to raise the percentage of employees with three or more years of continuous service to at least 30% Enhanced benefits Contribute to the region and shift to local recruitment Employee awareness-raising (7S, KT activities) |
CITIZEN SEIMITSU Subsidiary in China CITIZEN PRECISION GUANGZHOU |
Retention rate for employees with continuous service of three or more years: 27.5% Benefits: Enrollment in social insurance, expansion of the housing allowance scheme, compliance with minimum wage rules Regional contribution: Donated 50,000 yuan (approximately 628,000 yen) to the local government Employee awareness-raising: Promoted Seven-S activities as a key to workplace climate reform |
B | Improve the employee retention rate (2011: 40%, 2012: 50%). | |
| 9. Management responsibilities | Promotion of workplace climate reform through 7S activities, KT activities, improvement activities, environmental activities and voluntary activities Goals: Evaluation points of 6 or higher Measures: Revitalize each activity, clarify departmental evaluations and eliminate gaps between departments |
CITIZEN SEIMITSU | Achieved visualization by formulating KT and improvement proposals as a system. Sought to revitalize activities through a review of diagnostic items and methods. Evaluation points rose to 6.26 (average). Revitalized activities in each department by placing an emphasis on voluntary activities. |
A | Improve the secretariat system Implement innovations and training that links business streamlining with work improvements. Strive to earn evaluation points of 8.0. |
Summary of fiscal 2010 and issues for the future
For fiscal 2010, we focused our efforts on the four major challenges. For fiscal 2011, we will continue to improve Group-wide levels in a sustained effort to produce positive results.
Efforts at Each Group Company
7S Activities as part of the Phoenix Plan at Chinese Plants
Patrolling as a Part of 7S Activities
The Phoenix Plan (an initiative aimed at avoiding China-specific risks such as a sharp rise in personnel costs and a rolling back of preferential taxation) refers to a set of activities being uniquely implemented by Citizen Precision Guangzhou Ltd., a Chinese subsidiary of Citizen Seimitsu Co., Ltd. The plan has entered its second year. To step up the activities in fiscal 2010, innovations to jumpstart efforts such as activity briefing sessions and a new awards program are carried out periodically, and efforts have been made to expand the scope of the plan. A “greeting movement” is also being adopted as an initiative to promote full employee participation, which has been one of our challenges. We have set the goal of reaching 4,000 cumulative participants by March 2013, and at the end of January 2011, participation stood at 1,306 people, exceeding the goal at the current stage with a transitional achievement rate of 106%. With the dispatch of a representative from a department excelling in the activities to parent company Citizen Seimitsu Co., Ltd. in November 2010, efforts to further raise the level of activities are being implemented concurrently.
Expansion of 6SE Activities at Chinese Plant
At Astar Precision Co., Ltd., a Chinese subsidiary of Citizen Tohoku Co., Ltd., 6S (5S + “Safety”) activities have been implemented continuously since 2006 under the slogan “Let’s all greet one another together and clean together” as a means of awareness-raising and personnel training for employees. With the addition of “Environment” in 2009, these efforts have developed into 6SE activities. To spread these activities throughout the company, the company publishes the ASTAR VOICE, an in-house PR magazine that allows employees to understand and put into practice training and courses of action regarding greetings, 6SE activities, and company rules. Other activities being implemented include weekly tours and audits of the plant as well as fire drills and evacuation drills conducted in April and December. As a result, greetings are strictly observed, the workplace has become clean and a favorable image has been created for customers. In addition, occupational accidents have been reduced by 20%. Looking ahead, Astar Precision Co., Ltd. will continue to comply with local laws, and under its philosophy of “Contributing to and Striving to be Respected by Citizens of the World,” engage in CSR activities while respecting the nature of the business, its history and corporate culture.
Project to Reform Corporate Culture
Citizen Seimitsu Co, Ltd. is working on activities to reform its corporate culture aimed at becoming an “energetic company.” 7S activities are being undertaken as the pillar of promoting these efforts. The activities started with the original five S’s (seiri, seiton, seiso, seiketsu, and shitsuke), and were later developed in a unique way with two additional S’s, which are saho (courtesy) and safety. While acquiring the good manners that will delight customers visiting the company premises nestled in the beautiful natural environment at the foot of Mt. Fuji, Citizen Seimitsu Co, Ltd. is also tackling workplace safety as a fundamental of manufacturing.
From fiscal 2010, there has been a shift from existing “office-driven activities” to “activities that respect the autonomy of each workplace.” Each workplace works on ingenuity based on the themes of 5S, safety, good manners, improvement activities, the environment and voluntary activities. The results of activities are presented at company-wide briefings held each month in an effort to share information.
Towards the further development of activities based on the corporate culture that has been cultivated to date, the entire company will continue to engage in unified efforts.
