Hitachi Metals Corporate Philosophy
Code of Conduct for Hitachi Metals Group Companies
Enhancing Awareness of Social Responsibility and Corporate EthicsAdhering to the principle of "Obey the law and walk the path of virtue," we will develop our corporate activities in an ethical manner, with full grasp of our social responsibility and the potential effects of our corporate activities. As we conduct business on a global scale, we will comply with all relevant international conventions and the laws of each country, while striving to understand each country’s local religions, cultures and customs in order to contribute to regional economic development.
Pursuing Mutual Growth with our Business PartnersWith the aim of generating the highest possible customer satisfaction, we will engage in the development of unique basic technolo-gies and new technologies that empower us to continue providing high quality, reliable products. In achieving this aim, we will con-duct fair and appropriate business transactions with our suppliers.Based on an awareness of social responsibility shared jointly with our business partners, we will carry out corporate activities to real-ize mutual growth.
Promoting Truthful Communication with SocietyWe will disclose appropriate corporate information in a timely, fair and transparent manner to our shareholders and other stake-holders. At the same time, we will endeavor to establish a relationship of mutual trust with society through well-coordinated two-way communication.
Thinking about Our Next Generation - An Environmentally Friendly SolutionRecognizing the importance of protecting the environment, we will ensure effective and environmentally conscious utilization of limited natural resources in order to bestow a clean environment to the next generation.Through creation of new products and businesses that bring new value to society, we will base our sustainable growth on the provision of high quality products in harmony with the environment.
Fostering the Welfare of Employees and SocietyWe will create a safe and ideal workplace, embracing the great diversity of our individual employees and their capabilities, while promoting their personal development through work. As a good corporate citizen, we will continue efforts to contribute to society through sincere, nondiscriminatory corporate activities based on mutual trust with all members of society.
Formulated July 26, 2006
We aspire to contributing to society by creating "the best possible company"
based on harmony among people with affection for our company - a goal to be
pursued by drawing on its more than 100-year history, by ensuring that our
mainstay products lead their industries in both quality and quantity, and by
applying ourselves to the advancement of technology.
demonstrating environmental burden exceeding its standards for disclosure. This accounts for about 98% of the environmental burden created by the Hitachi Metals Group overall.Company names and related particulars are current as of March 31, 2010.
●PeriodThis report essentially covers fiscal 2009 (April 1, 2009 through March 31, 2010).
●Underlying Guidelines"Environmental Reporting Guidelines" 2007 Edition, the Ministry of the Environment, Japan"Environmental Performance Indicators for Businesses" 2002 Edition, the Ministry of the Environment, Japan"Environmental Reporting Guidelines 2001-With Focus on Stakeholders," the Ministry of Economy, Trade and Industry, Japan"Sustainability Reporting Guidelines 2006," Global Reporting Initiative
●Purpose of PublicationThis report is published with the aim of acquainting readers with the Hitachi Metals Group’s view towards corporate social responsibility (CSR). Disclosing examples of its daily business activities in a reader-friendly manner, the Group hopes that this report will serve as a valuable tool for communicating with its stakeholders.This report introduces the scope of Hitachi Metals Group management activities to its broad spectrum of stakeholders.The contents include corporate governance and compliance structures, as well as its product development and monozukuri activities that significantly contribute to the creation of a recycling-oriented society. Through disclosure of such information, the Group aims to broaden and deepen conversations with the global community, while diversifying the scope of corporate activities.Detailed information can be found on the website.
●ScopeThis report covers 76 companies of the Hitachi Metals Group (the Group) consisting of Hitachi Metals, Ltd. (the Company) and its Group companies (65 consolidated subsidiaries and 10 equity-method affiliates). The scope of environmental data includes data for the 49 companies within the Group
Note on the Corporate Social Responsibility Report
Editorial Policy
For detailed information, please seehttp://www.hitachi-metals.co.jp/e/corp/corp14.html
or the PDF file.
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Top Message
Group Discussion
Hitachi Metals Group CSR
Social Repor t
Hitachi Metals Factory Tour
Environmental Report
Third Party’s Opinion
Economic Report
Corporate Data
The Hitachi Metals Group has since its founding continually devel-
oped its business under its corporate philosophy of "contributing to
society by creating 'the best possible company.'" The "Code of Con-
duct for Hitachi Metals Group Companies" is the fundamental
embodiment of this corporate philosophy. Its five principles for con-
duct are psychological supports indicating the path for the Hitachi
Metals Group to follow. It is important that all employees fully under-
stand these principles, and it is our goal as a corporate group to
cultivate personnel able to put them into practice.
"Globalization" has become a watchword for the times, and as it
advances the importance of conducting business with others around
the world has grown. There is a need for personnel who understand
the business customs and cultures of peoples around world, and who
act in accordance with a strong ethical sense and self-discipline.
The business environment is also in the midst of dramatic changes.
Thank you for taking the time to look at the Hitachi Metals Group’s 2010 CSR Report. The Hitachi Metals
Group, as a manufacturer with advanced technological development capabilities, and in accordance with
its corporate philosophy of "contributing to society by creating 'the best possible company,'" has imple-
mented measures in keeping with the needs of the times. This is the embodiment of our corporate social
responsibility (CSR) activities.
This report presents the Hitachi Metals Group’s CSR activities as a member of society.
The "Code of Conduct for Hitachi Metals Group Companies" is the starting point for all activities
Guided by the five principles in our corporate Code of Conduct,we will adapt to the global era and contribute to society.
President, Chief Executive Officer and Director
Hiroyuki Fujii
The scope of corporate responsibility for managing behavior has
expanded beyond its own actions to include that of the partners with
which it works.
The important aspect here is not to focus on individual matters, but
to have a comprehensive understanding, and conduct business
based on principles for conduct that fit with the circumstances. The
Action Plan in the "Fiscal 2012 Medium-Term Management Plan"
formulated in April 2010 was created based on just such principles
for conduct.
Safety is the foundation for corporate activity, and must be a priority
above anything else. We deeply regret that in September 2009 a
major accident at our group company Hitachi Metals Wakamatsu,
Ltd. resulted in the death of an employee. Ensuring that such an
accident does not happen again remains foremost in our mind, and
with an understanding of the risks of a major accident inherent in
everyday work operations, we are making fundamentally revisions to
workplace safety. We will continue to maintain an unwavering com-
mitment to safety activities.
Consideration for the environment is essential for a company to
achieve sustainable growth. The Hitachi Metals Group employs a
dual approach to environmental issues that incorporates both
offensive and defensive measures. The offensive approach is the
development of new products that meet environmental needs. Some
of Eco-Products developed by the Hitachi Metals Group up to now
include HERCUNITE ®, along with materials for magnets and
amorphous metals. We will continue to utilize the advanced
technologies in energy efficiency we have acquired to develop even
better products.
The defensive approach is employing realistic environmental
strategies. Currently, the volume of CO2 and other greenhouse
gasses emitted by the Hitachi Metals Group (in Japan) accounts for
one third of all such emissions from the Hitachi Group (in Japan).
This is an extremely large figure, and improving this situation is an
immediate concern. Our initial efforts to reduce CO2 have focused
on measures for process innovation. In 2009 Japan announced to
the international community its medium-term goal of reducing
greenhouse gas emissions by 25% from 1990 levels by 2020.
Government policies are currently being implemented to achieve this
goal. The Hitachi Metals Group is contributing to society by acting in
line with such measures. In addition to reducing, we are of course
also taking proactive steps to address other issues, such as
reducing amounts of industrial waste.
Hitachi Metals considers its stakeholders to include the local com-
munities where its offices are based, along with all its business
partners. We have helped support community sporting events such
as the Kumagaya Sakura Marathon (Kumagaya city, Saitama Pre-
fecture) and the Junior High Volleyball Invitational Tournament
(Tottori city, Tottori Prefecture), and have actively sought communi-
cation with local residents. We plan to continue these measures
regardless of the economic circumstances.
From an even broader perspective, we believe that maintaining a
domestic manufacturing base and generating employment in Japan
to be a social contribution we make through our primary business
operations. When I was a factory general manager, I was keenly
aware of the importance of improving the work environment and
maintaining employment. Even amid the current advance of global-
ization, Hitachi Metals will remain a company with the technological
capabilities to ensure its main production centers remain in Japan,
utilizing production technologies only possible in Japan. Exploring
ways to accomplish this, and perpetuating manufacturing industry in
Japan, will benefit stakeholders. Corporate earnings are derived first
and foremost through communication with society, and we believe
that efforts to give back to the community to be the social responsi-
bility of a corporation.
The perception of value in the corporation changes with the times.
The Hitachi Metals Group makes a continual effort to respond flex-
ibly to the demands of the era, and to be a company trusted by all
stakeholders. The creation and publishing of this CSR Report is one
of the important tools for ensuring communication with society.
Beginning with the 2009 report the CSR Report has mainly been
made available as an online PDF version, with the Hitachi Metals
Group’s 2010 CSR Report a digest version condensed to its essen-
tial elements. I feel that this allows us to express the Hitachi Metals
Group’s measures to readers in an easy-to-understand way. Thank
you for your continued support and guidance in helping us to
achieve mutual growth.
July 2010
Safety is our first priority in all aspects of business
Dual approach to environmental issues
The CSR Report ensures communication with society
Contributing to society through our primary business operations
Nowadays, CSR is considered to be a fundamental part of a company’s existence. In their day-to-day work, individual employees of the Hitachi Metals Group have a strong commitment to CSR. Each employee’s personal CSR vision and the method by which he or she puts this vision into practice varies widely depending on the division to which they belong, their work environment and other factors. For this group discussion, we brought together eight young Hitachi Metals Group employees to discuss their own particular approaches to CSR.
NEOMAX Company Planning Division
Masaki Kobayashi(Joined Hitachi Metals in 2002)
Mr. Kobayashi carries out sales planning for NEOMAX®, the world’ s top brand of rare-earth magnets. NEOMAX® magnets are indispens-able in such applications as hybrid electric vehicles (HEV).
Thinking about — and putting into practice —Hitachi Metals Group CSR
Moka Works Management Group
Ken’ ichiro Shimazu(Joined Hitachi Metals in 2000)
Mr. Sh imazu is engaged in mater ia ls operat ions at the Moka Works, which manufac-t u r e s a u t o m o t i v e c a s t i n g components.
Information System Components Company / Sales Division
Yasuhiro Yamanaka(Joined Hitachi Metals in 1988)
Mr. Yamanaka is involved in sales of information system compo-nents, which are used in various e lect ron ic dev ices. Th is is a relatively small category within Hitachi Metals’ overall product portfolio.
Specialty Steel Company Industrial Materials Business Unit
Hiroki Nagahama(Joined Hitachi Metals in 2003)
Mr. Nagahama is tasked with expand-ing sales of steel for use in turbine blades and other high-performance applications. These products utilize the unique properties of Yasuki Hagane® steel, which inherits Japan’s ancient tradition of tatara steel making.
Moderator: Corporate Management Planning OfficeCSR Management Office
Nobuhiro Narita(Joined Hitachi Metals in 2003)
A l t hough Mr. Na r i t a wo rks i n t he Management Planning Off ice ( legal group), he also holds concurrent respon-sibilities in the CSR Promotion Office.
Roll Company Sales Division
Ryota Kawada(Joined Hitachi Metals in 2002)
Mr. Kawada works to expand sales of mill rolls to overseas steel makers. His current target markets include India and other countries in Asia.
Technology Center Environment Management Department
Mari Ibuka(Joined Hitachi Metals in 2008)
Ms. Ibuka’s job deals with compa-nywide environmental manage-ment. Until 2009, she worked at Hitachi Metals Europe GmbH to e n s u r e c o m p l i a n c e w i t h t h e European Union’s REACH regulation (Registration, Evaluation, Authoriza-tion and Restriction of Chemicals).
Soft Magnetic Materials CompanyF Project
Rieko Uematsu(Joined Hitachi Metals in 2008)
Ms. Uematsu works at a plant that produces amorphous metals, which contribute to the reduction of CO2 emissions. She is also involved in direct negotiations with clients.
Piping Components CompanySales Division
Tatsuro Morita(Joined Hitachi Metals in 1997)
Mr. Morita is tasked with expand-ing sales of piping components, which play an important role in providing drinking water, gas and other essential utilities to house-holds.
nally, we have to address human resource development. In
particular, I feel that the larger a customer’s organization is, the
more closely they tend to scrutinize our CSR-related practices.
It is clear that each of you have your own perception of CSR.
Moreover, the views you have expressed provide a good under-
standing of how you are each utilizing your understanding of CSR
to put it into practice.
A large proportion of the parties who request copies of the Hitachi
Metals Group CSR Report are either universities or university
students. What are your views on this particular trend?
In recent years, the news media has given substantial coverage to
CSR-related issues, so I think it is only natural that universities and
students should have a heightened awareness of CSR.
Without doubt. Several years ago, when many of us were searching
for a job, I doubt that we were greatly aware of CSR. However, if one
looks at the job-hunting process nowadays, there is a lot of informa-
tion contained in CSR reports that could be very relevant as subject
matter for questions for students taking interviews. As a corporate
group, maybe we need to put even more effort into our CSR report
as a way of deepening mutual understanding with students.
I wanted to work in the environmental field, so when I was looking
for a job, before I went to an interview, I thoroughly read the
company’s environmental and CSR reports. I think that it is one
way of measuring a company’s credibility. For reasons such as
these, I think it is important to produce reports that are accessible
to young people.
Although I did not ask any questions relating to CSR during my job
search, nowadays, when corporate scandals are often in the head-
lines, CSR reports are much more likely to be used by students as
a key input when judging the value of a company.
These days, through the Internet, for most people it is easy to
obtain and read any company’s CSR report. Hence, many students
carefully read the CSR reports of companies they are interested in
to gain a practical understanding of each company’s CSR activities
prior to joining a company. So I think it is important to realize that
there is a high level of interest among students.
As awareness within society increases, I expect that we will enter
an era of ever more rigorous scrutiny of CSR. In my own experi-
ence, students who are getting ready to enter the work force in the
near future tend to be very sensitive to these kinds of issues.
Hence, I think that the CSR report is becoming an important tool
for addressing these needs and also for raising our level of cred-
ibility as a corporate group.
So it would be fair to say that the CSR report is rapidly becoming a
type of educational text that is essential reading before joining a
company. For students, it is a valuable source of information for
gaining an understanding of companies when researching
prospective employers.
In 2006, the Hitachi Metals Group established the Code of Con-
duct for Hitachi Metals Group Companies, which comprises five
core principles. Each year, the Hitachi Metals Group runs CSR
training programs based on this Code of Conduct. In the context of
your experience to date and your daily work operations, how do
each of you view Hitachi Metals Group CSR?
Since I work at a factory, I have a strong awareness that nurturing
human resources at the production front line is the essence of
CSR. It is people that put CSR into practice. I also believe that
fostering new employees to become full-fledged members of soci-
ety is important for CSR.
I too work at a factory. I have begun to think about translating CSR
into concrete results from the point of view of formulating and
putting into practice specific cost-saving measures. Complying
with laws and regulations is relatively straightforward but I would
really like to take it a step further and practice what truly deserves
to be called CSR.
I am involved in sales, so I think that the foremost CSR that I need to
fulfill is responding to the demands of customers. At the same time,
it is important to maintain a strong awareness of compliance issues.
From a sales perspective, I am acutely aware of the compliance
aspects of CSR, both in Japan and abroad. My sales team is often
directly competing with other companies when it tries to win
orders. There is the danger that—if we adopt the wrong
approach—without even realizing it we may find ourselves in a
situation that could be in violation of the Antimonopoly Law.
I agree. If we go out to a client’s office or factory, and we happen
to run into a competitor, we have to be very careful about what we
say and do. Also, in business dealings in countries where there are
still large differences from Japan in what is considered "normal
practice," we try as much as possible to build a common under-
standing of what is acceptable.
In our normal sales activities, we are committed to doing common-
sense things in commonsense ways. However, the difficult part
comes when different countries have different ways of perceiving
the things that were just mentioned—"normal practice" or "com-
monsense." Hence, we need to think closely about what is regarded
as "commonsense" in the countries where we are doing business.
Until last year, I was working in Europe, where there is a very high
level of CSR awareness. In particular, I was able to gain firsthand
experience of the importance of CSR. I believe that we must
address CSR with an underlying awareness that companies not
living up to their responsibilities are likely to suffer serious damage
to their credibility within society.
I think that within CSR, as a corporate group there are things that
we need to address internally and things that relate to our external
interactions. For example, externally we need to explain the stance
of the Hitachi Metals Group in such areas as compliance. Inter-
Moderator
Shimazu
Uematsu
Nagahama
Yamanaka
Kobayashi
Kawada
Ibuka
Morita
Moderator
Moderator
Yamanaka
Shimazu
Ibuka
Kawada
Nagahama
Uematsu
Moderator
Taking the lead in addressing CSR within daily operations
CSR reports are essential reading for those who seek to be full-fledged members of society
My work primarily involves components and materials related to
nuclear power generation. For this reason, I am necessarily
conscious of a very broad scope of stakeholders. Speaking hypo-
thetically, if a product delivered by the Group were ever the cause
of an accident at a customer’s plant, people living near to the plant
may suffer damage or injury, the level of trust placed in us by soci-
ety would plunge and such an incident may even have an impact
on the Japanese government’ s nuclear power-related policies.
With the knowledge that our scope of stakeholders is potentially
very large, we have to undertake our business operations while
always maintaining a certain level of tension.
Consumers do not generally get to see the Group’s products in an
unmodified state. Rather, our products are used in a wide range of
applications and products. Hence, it is vital for us to think about
our connections with society.
The Hitachi Metals Group operates in an upstream industry. There-
fore, if any problems arise, there is the risk that the impact may
spread as far as downstream industries and customers. If we think
about the implications, we have a duty to carry out our work while
constantly maintaining an awareness that we are connected to a
very large number of people—with most of whom we do not come
into direct contact.
Where I work, at the factory in Yasugi City, Shimane Prefecture,
the local area has a long history as a Hitachi Metals company
town. This background provides a common awareness that our
stakeholder scope extends to the local community, local public
agencies and beyond.
Even though it generally goes without saying that the first stake-
holder is the customer, one can take the view that ultimately
everyone living on this planet is a stakeholder. Although at first
glance such an assertion may seem rather far-fetched, by looking
at individual cases within our daily business operations and think-
ing about these in conjunction with material we cover in our annual
training programs, we put in a lot of effort into translating CSR
theory into something tangible and practical.
From an environmental perspective, one can argue that the
Earth’ s environment is a stakeholder too. While it is obvious that
As a materials manufacturer using advanced technology, the Hita-
chi Metals Group produces a diverse range of products, from
specialty steel and casting components to magnets, electronic
devices and amorphous metals. Each of you present here today
deals with different types of products. Furthermore, you come into
contact with customers and society through an array of different
work situations, including the factory, head office and sales activi-
ties. The basis for CSR is thinking about the relationship between a
company and its stakeholders. In other words, for us this is the
relationship between the Hitachi Metals Group and all of the
people it interacts with or affects. I want to hear your views on the
Group’s stakeholders from your own particular perspectives.
Needless to say, as someone involved in sales, the stakeholders I
have to think about first are the customers I deal with on a day-
to-day basis—trading companies, general construction companies
and subcontractors. In addition, in the background there are major
real estate developers and building owners. So I am always aware
that even the scope of direct stakeholders for the projects I work
on is quite broad.
Certainly, when I think about my regular sales activities, the first
stakeholders I think about are my customers. Of course, at the
same time, I am also very mindful of our suppliers since some of
the raw materials used in our magnets are very scarce.
It stands to reason that we think of the customer first, since it is
they who purchase the Group’s products. There would be some-
thing amiss if that were not the case. But what about in the case
of a factory?
Since I work in procurement, when I think about stakeholders I
think of partner factories and other suppliers and also the people
who live near to these factories and their and local communities.
Without maintaining this type of perspective, I think it would be
difficult for a manufacturer to last for very long in a local area.
Moderator
Morita
Kobayashi
Moderator
Shimazu
Nagahama
Moderator
Yamanaka
Uematsu
Kawada
Ibuka
Our stakeholders —from customers to the Earth’s environment
the people with whom we deal directly are stakeholders, similar to
a supply chain, everyone on this planet is connected in some way.
I aim to do my job in a way that meets the expectations of our
stakeholders, whose scope is really limitless.
From the things we have discussed, I can appreciate the deter-
mined efforts you are each making with regard to giving CSR prac-
tical form.
Since you are all younger members of the Hitachi Metals Group,
the future of the Group is in your hands. So I would like to ask
each of you to voice your own resolve on how you intend to put
CSR into practice within your own day-to-day work.
The suppliers with whom I come into contact on a daily basis have
a significant impact on the local community. By building harmoni-
ous, mutually beneficial relationships with those stakeholders, I
aim to contribute to the local community. I see this as part of our
contribution to society and also as an integral part of CSR.
As a factory, it is our responsibility to respond to the requests of
our customers by producing amorphous metal products that are
unique internationally—products that only the Hitachi Metals
Group is capable of manufacturing. It is also our duty to nurture
the unique technologies on which these products are based. I am
conscious of both of these roles, which means that I approach my
work with a profound sense of responsibility.
My job is principally focused on magnets. The raw materials for
these magnets include certain very rare metals. From the perspec-
tive that we have a duty to effectively util ize these scarce
resources, we must work to ensure that resources are not wasted.
While responding to the demands of our customers, we strive to
ensure that the products we supply do not exceed the customer’ s
specification requirements. Above all, I want to take responsibility
for ensuring the maintenance of stable supply.
While valuing our customers highly, I aim to conduct sales activi-
ties that are not driven solely by customer demands. The reason
Moderator
Moderator
Shimazu
Uematsu
Kobayashi
Kawada
being that although the customer is our number one stakeholder,
from the customer ’s perspective, the Hitachi Metals Group is also
a stakeholder of theirs. For the time being, I intend to focus on the
development of the Indian market, which is emerging at a very
rapid pace. I want my sales activities to facilitate a win-win situa-
tion for both buyer and seller.
Through my job dealing with piping components, I intend to win
trust in the Hitachi Metals Group. Pipes are used to supply water
and gas—essential to our daily lives. Thus piping components
support important parts of our social infrastructure. I am commit-
ted to ensuring that our quality is maintained, because if we com-
promise on quality, we risk losing the trust placed in us.
I intend to further step up my efforts by utilizing the Group’ s accu-
mulated experience to date as the basis for CSR-related research.
While constantly remaining mindful that I am dealing with products
that could have an impact on human lives, I aim to undertake my
work with a sense of pride and fulfill my CSR obligations.
I see my first step toward CSR as monitoring the latest environ-
mental information and relaying such information to factories and
other parts of the Group. By doing my job in a way that enables
staff and organizational units within the Group to act swiftly, I
intend to contribute to the smooth functioning of the entire Hitachi
Metals Group.
Typically, consumers use the Group’s products without knowing it.
Mobile phones are one such example—to look at the end product
gives no indication that a Hitachi Metals Group product is inside.
To constantly improve the functionality of these kinds of products, I
want to manufacture and market products to the highest quality
using cutting-edge technology. By doing so, I aim to respond not
only to the needs of our customers but also to fulfill an important
role within our CSR.
I think our discussion today has shown clearly that there is a high
level of CSR-consciousness among young members of the Hitachi
Metals Group. This has been conveyed by the robust views you
have each offered. Thank you for making time within your busy
work schedules to participate in today’s conversation.
Morita
Nagahama
Ibuka
Yamanaka
Moderator
Working toward even higher level CSR practice in the future
Hitachi Metals Group’s CSR activities consist of corporate activities that create "the best possible company," and this corporate philosophy neatly portrays the attitudes Hitachi Metals Group holds toward CSR.
In 2009, there were two accidents involving lost work time at Hitachi Metals, and eight accidents across all Group compa-nies (including one fatal case*), indicating that we were not able to significantly improve on the previous year, in which there were 4 and 7 accidents, respectively.For this reason, in 2010 we rolled out a program of health and safety activit ies across the entire Group based on the fundamental principle of "safety comes first." In addition to further improve the occupational safety management system, we strive to improve the safety awareness of every employee by conducting risk assessments suited to circumstances of
each plant and Group company, KY (Kiken-Yochi, foreseeing danger) activities, and practical safety training.
Hitachi Metals formulated its Code of Conduct for Hitachi Metals Group Companies in July 2006, and has conducted CSR on a foundation of "Obey the law and walk the path of virtue".Nevertheless, violations of the Antimonopoly Act were uncovered in 2006 and 2007.In response, Hitachi Metals implemented measures that included extraordinary audits, and an internal training program.Hitachi Metals has no intention of sidestepping this issue, and will continue to implement similar measures during fiscal 2008 to prevent similar cases from arising in the future.In addition, Hitachi Metals made October 2009 the Hitachi Metals Group Corporate Ethics Month, and in this initiative, conveyed the CEO’s message to all Hitachi Metals Group staff, and conducted training and other activities.
■Compliance Measures
[Internal On-site Training]1. On-site training seminars conducted by the sales director and the Compliance Department
regarding compliance with the Antimonopoly Act and the Code of ConductTarget offices for training : Hitachi Metals head office, branch offices, sales offices, manufacturing sites and research centers; Group companies’ head offices and sales sitesNumber of sessions :75 seminars for 148 business offices (including joint and multiple sessions)
2. On-site compliance training seminars at overseas locations conducted by the ComplianceDepartment
Target offices for training :Overseas business offices (12 business offices)Number of sessions :12 seminars at 12 locations (including joint sessions)
3. Compliance training for specific levels and positions2009 Apr. Training for new hires
Jul. Training for newly appointed junior executiveNov. Sales accounting trainingDec. Training for newly managers
[Compliance Extraordinary Audits]Hitachi Metals conducted extraordinary audits of all its business offices, and the consolidated subsidiaries that operate commercial businesses or independent businesses. Auditors reviewed documents related to these businesses (such as invoices, and papers on industrial organizations to which they belong) and took statements from all sales managers to ensure there were no violations of the Antimonopoly Act.
[Compliance Hotline]Hitachi Metals formulated the policy for its Compliance Hotline in April 2005, and launched the internal reporting system at Hitachi Metals and Group companies to help prevent legal violations or improper actions, and to quickly correct the situation should violations occur.This system allows all employees at Hitachi Metals or its Group companies to report incidents in their workplace by email or sealed letter. Employees can use this system to directly report and resolve issues when they are unable to consult with their supervisor or receive no response.
Hitachi Metals Group Corporate Ethics Month/Message from CEO
Compliance training at the head office
Compliance training at overseas office
■Effort to Eliminate Occupational Injuries
* Report on the fatal accident at Hitachi Metals Wakamatsu, Ltd.On the September 23, 2009, a grave accident occurred at the Group’ s Hitachi Metals Wakamatsu, Ltd. in which three workers were hospitalized with burns, and one died. At Hitachi Metals Group, we take this accident extremely seriously, and have made a fundamental review for the site safety, with the assumption that regular routines expose workers to grave latent risks. We are implementing daily safety initiatives to ensure that this kind of grave accident never happens again.
Communicating with Local Communities"Let’s clean up the polluted sea and bring back the fish"
Participation in the International Coastal Clean Up of Rosario City, the PhilippinesNEOMAX Company San Technology, Inc
In Rosario City, a suburb of Manila in the Philippines, the International Coastal Clean Up Activity is being conducted, aiming for the vegetation by sinking a man-made fish reef made of natural materials out at sea. San Technology, Inc.
under NEOMAX Company, supported this activity together with local companies in the Cavite Economic Zone (CEZ), and dispatched employee volunteers and made a contribu-tion (25,000 pesos) to the fish reef materials.
Dispatched employee volunteers Award ceremonyAt the front are the man-made pyramid-shaped fish reefs
The corporate philosophy of the Hitachi Metals Group is to "contribute to society by creating 'the best possible company,'" and the Code of Conduct for Hitachi Metals Group Companies includes the aspiration to continue to contribute to society as a good corporate citizen. Pursuant to these policies, the Company is engaged in a variety of social contribution activities.
■In Cooperation with Society and the Local Community
1. Harmonious coexistence withlocal communities
2. Support through charitablefoundations
3. Preservation of historical sitesand traditional culture
4. Support for regions that havesuffered from disasters
5. Social Welfare The Hitachi Metal Cup Junior High School Friendly Sports Tournament
Kanda Friendship Marathon
■Hitachi Metals Group CSR
Since its inception, the corporate philosophy of the Hitachi Metals Group has been to "con-tribute to society by creating 'the best possible company.'" This philosophy has been properly reflected in the Hitachi Metals Group policies toward CSR.
■Internal Control System
Hi tach i Meta ls , in accordance w i th the requirements of the U.S. Sarbanes-Oxley Act, is expanding its internal control system based on a standard framework (COSO Framework). Through this system the internal controls for financial reporting are documented, and their effectiveness is evaluated. In fiscal 2008, this system was brought in line with the internal control reporting structure introduced based on the requirements of Japan’s Financial Instruments and Exchange Law. Hitachi Metals will continue to work to enhance the effective-ness of its internal controls.
■Corporate Governance
The underlying basis for corporate governance at Hitachi Metals is to ensure management transparency and efficiency, meeting the needs of our stakeholders, and increasing corporate value. We believe this to be one of the most important management issues within our firm.Accordingly, it is imperative that we create an organizational structure in which management oversight and business operations function effectively and in balance. We also believe that timely, high-quality information disclosure contributes to the improvement of corporate governance. In pursuit of this philosophy, we have chosen to go beyond levels of simple financial disclosure, regularly publishing the details of individual business segments and medium-term management plans.
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/corp /corp14.htmlEconom
ic Report/Corporate DataEnvironm
ental ReportHitachi M
etals Group CSRSocial Report
Ally :Girl on factory tourMike :Boy on factory tourMel :Hitachi Metals tour guide
●Comply with laws, regulations and social requirements●Fair, clean trading●Open, global procurement●Maintain partnerships●Keep confidentiality●Conserve the environment
Hitachi Metals Group’s Procurement Policy
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Welcome, everyone!Thanks for taking us on the tour today!Today we’ll see how Hitachi Metals makes aluminum wheels and mag-nets. Have you got your helmets on?
Wow, they’re so cool!Those are SCUBA® brand aluminum wheels, featuring Hitachi Metals’ unique combination of lightweight material and stylish design.Melting
Wow, this is what wheels are made from? It’s all melted!It looks really hot. How hot does it have to get to melt?
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highly visible product, so making them look good is important.
Inspection
Are the wheels inspected before shipment?Of course. Aluminum wheels are important safety equipment, and are strictly inspected to ensure the safety of automobiles.
Now we’ ll see how magnets are made.
Magnets are used in al l kind of things, aren’ t they, like cars and air conditioners and mobile phones?You really know a lot about it. For example, magnets are important parts for making electric motors
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Around 660ºC, but that’s about half the temperature at which steel melts. The wheels are made using low-pressure die casting, in which force is applied to push the molten alumi-num directly into the mold to form the wheel.Heat TreatmentAfter the aluminum has hardened, it is heated again for fixed period of time to increase its strength and ductility. This is called the heat treat-ment process.
Finishing
Look at the wheels being filed!This is the finishing stage, where the surface is filed and polished.PaintingLook at all the wheels lined up over there! The wheels in the back are being carried off somewhere. What is happening there?After finishing the wheels are painted. This both protects the surface, and gives it a nice color. Wheels are a
■Seeking to Create Products That Offer the Greatest Customer SatisfactionDriven by twin philosophies of priority on quality and placing the customer first, the Hitachi Metals Group cont inues to improve our qua l i ty assurance technologies, offering products that delight both our customers and the ultimate product consumers. This is yet another way in which we contribute to the betterment of society.
■With Our SuppliersCSR in p rocurement i s ach ieved th rough a combination of our own CSR practices, and business relationships with other companies that follow CSR principles. When the trading relationship begins Hitachi Metals declares its basic policies, and confirms the CSR compliance status of its partners.
■With Society, Including Our Shareholders and Investors Timely Publication of InformationTo earn trust as a highly transparent "open firm," the Hitachi Metals Group is working to enhance in-house systems to appropriately implement prompt, accurate and fair disclosure of company information and publish information in a timely manner.
■Human Resources TrainingThe basic stance of the Hitachi Metals Group toward its personnel is summed up in the phrase "strength through harmony," the fundamental spirit we have
■Personal Information Protection/ Information Security InitiativesThe Hitachi Metals Group established a "Basic Pol icy of Information Security" in Apri l 2004, followed by a "Personal Information Protection Policy" in January 2005, establishing a system of personal in format ion protect ion/ informat ion security based on these policies. The Company continues to update information security measures on an ongoing basis.
■NEOMAX® Manufacturing Process
Pursuing Mutual Growth with Our Business Partners
Promoting Truthful Communication with Society
Fostering the Welfare of Employees and Society
■Aluminum Wheels Manufacturing Process
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/corp /corp14.html
* Maximum magnetic energy under laboratory conditions 474kJ/m3 (59.5MGOe) (as of June 2008); Source:Rare Metal News
Magnet alloy is pulverized to create a raw powder with strong magnetic properties that is readily formed in a press.
Pressing the raw powder in a magnetic field aligns the particles in the same direction, and creates a compressed body in a prescribed shape.
The magnetic material is sintered at temperatures of more than 1,000ºC.
Magnets are cut and filed mainly with diamond-edged tools to create the desired size and shape.
The surface is finished to enhance long-term reliability. Hitachi Metals provides several types of surface treatments according the usage environment and application for NEOMAX® magnets.
Economic Report/Corporate Data
Hitachi Metals Group CSR
Environmental Report
Social Report
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move. Today I’ ll show you how we make NEOMAX® magnets, which are some of the strongest in the world.*Really? The strongest in the world? How exciting!CrushingFirst, this powder is placed in the pressing machine.Magnets are made from this powder? It has extremely fine grains.That’s right. This powder is pulver-ized magnet alloy. It needs to be finely ground in order to make a strong magnet. Even these t iny particles have magnetic properties.
Pressing in magnetic field Wow, now i t ’ s be i ng p ressed together. Is it OK?
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Hey, what’s going on here?The magnets are getting a make-over. They are finished into the exact s ize and shape ordered by the customer, and finally the surface is painted to prevent rust. All that’s left now i s f o r t he magne t s t o be inspected and shipped.
Huh? What’s going on here? They don’ t stick together. Are these really the world’s strongest magnets?Here, let me see that. We put it in this magnetizer, and... there. Now it’s a magnet.What did you do? Now they stick together. They’ re really magnets! It’ s like magic! They’ re really strong. Let me see!Careful! You’ l l get your f ingers caught!That’s right. You can get your fingers caught or hurt yoursel f, so you shouldn’t play with NEOMAX® mag-nets.They’re small, but really powerful. Super-strong magnets are really amazing.So what did you think? Do you know al l about aluminum wheels and NEOMAX® magnets?It was a great tour! Thank you!
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Everything’s fine. This is where the magnet is formed into a variety of shapes. But there’s still a bit of a secret here. The particles are being lined up.You line up the particles?The technical term for it is called "pressing in magnetic field." Essen-tially, all the "heads" of the particles are aligned in the same direction. You know how in school the teachers will tell you line up in a straight line? It’ s the same thing.All of these tiny particles have mag-netic properties, so when they are all fac ing the same d i rec t ion they become extremely strong. But they’ ve really just been pressed together, so if you touch the block it will fall apart.Sintering and Heat TreatmentHot, hot, red hot, red hot!This is where the blocks are sintered, or baked into a fused solid at tem-peratures of more than 1,000ºC.
Grinding and Surface Treatment
followed since our founding. Based on this philoso-phy, we continue to conduct activities aimed at creating a corporate culture that facilitates individu-ality and independence.
■Labor and Management RelationsHitachi Metals s incere ly addresses common management-labor issues, respecting the basic r ights and responsibi l i t ies of each, bui l t on a "foundation of mutual trust."
■Respecting Human RightsHitachi Meta ls has establ ished channels for reporting harassment issues, along with other corporate systems to guarantee basic rights. We have a lso focused on systemat ica l ly ra is ing awareness of human rights by providing a range of educational opportunities, including e-learning courses on human rights and level-appropriate training sessions.
retired from the Company due to childbirth or home ca re , demons t ra t i ng once aga in ou r forward-thinking policies.Our child care and nursing care leave programs are now well-established. During fiscal 2007, we expanded the special cumulative leave program in combination with family nursing care leave to allow up to 20 days off during the leave year for the care of a spouse or child, or the parents of the employee or the employee’ s spouse. Even with the fiscal 2010 revisions to the basic law on child care and nursing care leave, our systems exceed the legal requirements. We will continue to focus on developing the operational aspects of these systems.
■Employment of the Physically Disabled and Support for Nurturing the Next GenerationHitachi Metals has been an early adopter in build-ing a system providing employment opportunities for physical ly d isabled indiv iduals. In 1998, Hitachi Metals established the Hallow, Ltd. special subsidiary, followed by Kuwana Create Co., Ltd. in 2006, which received special government certifi-cation as a company offering employment oppor-tunities for the physically disabled. These two companies have been recognized by their local communities for their policies, including the active hiring of mentally disabled individuals. Beginning fiscal 2008, the Company has estab-lished a child allowance benefit for employees as a policy for supporting the development of the next generation, strengthening our support of employees who are raising children. In 1992, Hitachi Metals was also one of the first firms to adopt a system to re-employ individuals who have
●Medium-to-Long-Term Environmental Strategy
Towards Global Environmental ManagementWhile taking into account the unique characteristics of each country and region, we aim to promote thorough understanding of basic environmental philosophy among Hitachi Metals Group companies, and expand activities to reduce the environmental burden, with a focus on the environmental risk management.
Global Warming PreventionTaking society’s need to reduce CO2 emissions as an opportunity, we aim to innovate our manufacturing processes, and strengthen our manufacturing technologies while simultaneously aiming to reduce CO2 emissions.
Expansion of Eco-ProductsOur mission is to contribute to the establishment of a recycling-oriented society by concentrating management resources on Eco-Products, for which the market demand is growing, and providing society with products that reduce the environmental burden, such as by reducing CO2 emissions, saving resources, and reducing hazardous substances.
Recycling of ResourcesWe are pushing forward multiple initiatives such as the reduction of the amount of waste by innovating the manufacturing processes, development of uses for recycled waste, and recovery of used products.
●Environmental Objectives, Targets, and ResultsAlthough we could not achieve the targets in some environmental activities due to the influence of the sales decline and social trends following the Lehman shock, generally could meet the targets.
Quantitative Items
Reduction rate in CO2 emissions per unit (vs. FY2006, in Japan)
Eco-Management & Eco-MindGreen PointsCompletion rate of Eco-Mind training through e-learning
Registration rate of Eco-ProductsEco-Products sales ratio
Green supplier ratio (non-consolidated)
Resource recycling rate (in Japan)Net sales energy rate (in Japan)*2
Reduction rate in VOC atmospheric emissions (vs. FY2000)
GREEN 21*1
Reduction rate in CO2 emissions (vs. FY1990, in Japan)*2
Reduction rate in water usage (vs. FY2005, per unit sales)
Eco-Products
Eco-Factories
Environmental Education
Expand Eco-Products
Reducing the Product Transportation Burden
Waste Reduction
Global Warming Prevention
Reducing VOC*3
Conserving Water Resources
Category Environmental Objectives Indicators
Qualitative Items
Eco-Management & Eco-Mind
Held Hitachi Metals Group Environmental Committee meetingParticipation in planning for the information exchange meeting in China for Hitachi Environmental
Completion of the company-integrated EMS
Environmental cost : 8.63 billion yenEnvironmental effects (economic effects):2.43 billion yen
Environmental Management Promotion
Eco-Products
Eco-Factories
Promote environmental meetings
Implementation of Environmental Accounting
Implementation of Environmental Training
Our Response to Regulations on Hazardous Chemicals in Products
CompliancePromote "zero emission*6" at works
Environmental Information Disclosure
Category Environmental Objectives Fiscal 2009 Results
Environmental Management System (EMS)
Two incidents outside Japan (exceeding wastewater standards, deficiency in environment-related
Cooperation with Stakeholders
Social Contribution
Environmental effects (physical effects):Energy reduction 7,519 kl (crude oil equivalent) :Waste Reduction 1,250 tonsEnvironmental Internal Auditor training : 24 people attendedEnvironmental Internal Auditor follow-up training :20 people attended
"Zero emission" achieved at 17 sitesHitachi Metals Group CSR Report 2009 issued
Exhibited at Eco-Products 2009
Held environmental discussions with various associationsWelcoming plant tours
Participation in local environmental preservation activitiesImplemented local area cleanup activities
Implement the Environmental CSR-Compliant Monozukuri structureImplement the SVHC*4 survey concerning REACH regulation*5
PR activities for Eco-Products
*1 :Hitachi Group’s mechanism for evaluating the achievement level for environmental activity targets *2 :The site subject to the target is a Type1 energy management designated plant in Japan *3:VOC:Volatile Organic Compounds *4 :SVHC:Substances of Very High Concern *5 :Registration, Evaluation, Authorization and Restriction of Chemicals. An EU regulation that mandates registration and evaluation of chemicals manufactured and imported in the EU, and where the substance is a cause for concern mandates authorization and for particularly high-risk substances, applies restrictions. *6 :Final disposal volume is less than 1% of total generated volume
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/corp /corp14.html
Fiscal 2009 Targets Fiscal 2009 Results Achievement level Fiscal 2010 Targets
Officers
Achievement level
facility notifications)
Exhibition in "Eco-Products 2009"We set up a booth at "Eco-Products 2009," held in the Tokyo Big Site from December 10 – 12, 2009. We exhibited our Eco-Products, such as rare earth magnets and target materials, to a broad array of v is i tors from pr imary school students to businessmen.
Regional clean-up activities300 employees from the Yasugi Works and the group companies in the Yasugi region participated in the "Clean-Up Yasugi Day" campaign.This is a clean-up activity run by the local government since 2006 with the aims of "environmental conservation" and "wise use" after the registration of the Shinji-ko and Nakaumi to the Ramsar Convention.
1,152 pt.85%
80%
(67%)
86%
10%
98.5%
1.126
10%
28.5%
8%
1,120 pt.99.8%
84.0%
(73.3%)
84.7%
21.1%
86.3%
1.216
36%
48.8%
▲15.3%
1,280 pt.90%
ー70%
90%
10%
99%
1.126
10%
30%
10%
: Target Achieved : Target 90% or More Achieved : Target Not Achieved
600,000
400,000
200,000
0
10
0
20
30
40
50
60
70
80
Net s
ales
(¥m
illion
)
Ratio
of E
co-P
rodu
cts
sale
s to
net
sal
es (%
)
200
400
600
800
1000
1200
1400
0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
0
CO2
emis
sion
s (1
,000
t-CO
2/y
ear)
Net s
ales
ene
rgy
rate
(Kl c
rude
oil
equi
vale
nt/m
illion
yen
)
2005 2006 2007 2008 2009 2010 2011 2012 1990 2005 2006 2007 2008 2009 2010 2011 2012
CO2 emissions targets
Global Warming PreventionExpand Eco-ProductsNet sales of Eco-Products (results)
Net sales of Eco-Products (projected)
Ratio of Eco-Products sales to net sales (results)
Ratio of Eco-Products sales to net sales (projected)
CO2 emissions (results)
CO2 emissions (projected)
Net sales energy rate (results)
Net sales energy rate (projected)
( )
Economic Report/Corporate Data
Hitachi Metals Group CSR
Social ReportEnvironm
ental Report
■Eco-Management & Eco-Mind
*1: Financial institutions that conduct an environmental management survey to determine a score for a company’s environmental management ability and reflect this score in their lending conditions.
As a first entity for the special steel sector, Hitachi Metals, Ltd. received the highest level environmental rating from the Develop-ment Bank of Japan*1, indicating "advanced environmentally-friendly initiatives are particularly noticeable." We received par-ticularly strong evaluations for our approval standards for Eco-Products, with the introduction of "Eco-Design Assessment," and our progressive objectives and targets for sales of Eco-Products.
Hitachi Metals Group’ s corporate philosophy is to contribute to society by creating "the best possible company." Based on this fundamental philosophy, we have positioned environmental considerations as a top management priority in order to preserve the common assets of humankind for future generations, and we are striving to conserve the global environment and the environments of local communities. Our aim is to reduce the environmental burden across the full life-cycle of products, not only in the manufacturing stage, but also in the product usage stage by consumers and the after-use disposal stage. We are pushing forward with environmental management, having established an environmental management system that links the Manufacturing Division with other non-manufacturing divisions such as the Planning Division, Sales Division, etc.
We received the top rating in an environmental responsibility
■Eco-Products
HPM-MAGIC ® is a new steel material developed as a mold material for mass producing resin products for household goods, IT devices and automobiles. It produces a smaller environmental burden while offering a good balance of the characteristics required for molds, including strength, break-resistance, ease of machining, and finished surface appearance. The mix-portion of trace con-stituents in metal materials were optimized, new heat treatment process added, and improvements were made to both the dura-bility (strength and toughness) and ease of machining, which it is difficult to take advantage of both characteristics. Meanwhile in the manufacturing process, the number of times of the melting process, required to ensure the mirror-finish, has been reduced from two to one. Furthermore, simplifying the hot working and heat treatment processes, we have succeeded in minimizing the variability in all types of characteristics, and greatly reduced the environmental burden.
Our mission is to contribute to the establishment of a recycling-oriented society by providing society with products that reduce the environmental burden, such as by reducing CO2 emissions, saving resources, and reducing hazardous substances.To reduce the environmental burden, we conduct the Eco-Design Assessment that addresses the entire life-cycle at the product’ s design stage, and we encourage green procurement when purchasing raw materials and components.
New plastic mold steel HPM-MAGIC® received the Best 10 New Products Award’s "Monodzukuri Prize"
The Specialty Steel Company’s new plastic mold steel "HPM-MAGIC®" won the 52nd (2009) Best 10 New Products Award’s "Monodzukuri Prize" (Nikkan Kogyo Shimbun). The prize is awarded to products that support craftsmanship (monodzukuri).
In January 2010 the US government announced that they would provide tax deductions targeting the US clean energy production businesses, as part of the Advanced Energy Manufacturing Tax Credits established under the Recovery Act.Metglas Inc. was chosen alongside Alstom, DuPont, GE, Siemens, Dow Chemical, etc., as a beneficiary of these tax credits. Transformers using amorphous metal materials made by Metglas, Inc. contribute to reductions in CO2 emissions gen-erated when electricity is produced, by reducing the energy loss in the power distribution network. This tax credit approval is proof that the US government recognizes Metglas Inc., which produces amorphous metal materials, as an "advanced energy manufacturing company" that contributes to the production of clean energy. Further, amorphous metal materials are manufac-tured in two plants in Japan and the US in a system that allows us to supply to the whole world.
Metglas, Inc. contributing to reduce CO2 emissions
The continued efforts of Metglas, Inc., which produces amorphous metal materials, have been recognized by the US government.
■Eco-Factories
Shimane Prefecture established the "Shimane Hatsu Construc-tion Brands" registration system to support expansion of new technologies and new manufacturing methods developed by the Prefecture’s construction companies into markets nationally. At present 15 products are registered and the slag produced as a by-product of the steel manufacturing process at the Yasugi Works is registered as an "electric furnace oxidation slag aggre-gate." This aggregate has a high specific gravity and a low coef-ficient of water absorption, while its aggregate expansion is small, so it is ideal for ocean construction works. To date about 40,000 tons of the material has been used in ocean construc-tion. (Uses:Concrete production, wave damping blocks, artificial fish reefs, algal reefs, etc.)
At Hitachi Metals Group we are actively engaged in environmental activities, placing great importance on prevention of global warming, reduction of waste, and appropriate management of chemical substances, with all manufacturing businesses aiming to create "Eco Factories," where the environment is prioritized.As a manufacturer of materials, the Hitachi Metals Group cannot avoid consuming large amounts of energy, inputting resources, and using chemical substances.Our Group, which considerably affects the environment through such business activities, sees its continuous efforts to promote Eco-Factories as part of its corporate social responsibility.
Aggregate that uses slag from the Yasugi Works is registered as a "Shimane Hatsu Construction Brand"
Survey on nurturing marine plants and algae
Ocean blocks utilizing electric furnace oxidation slag aggregate
Kombu seaweed vegetation survey
Economic Report/Corporate Data
Hitachi Metals Group CSR
Social ReportEnvironm
ental Report
Staff at Metglas, Inc. who support cutting-edge clean energy businesses
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/corp /corp14.html
relationships with clients, suppliers and local communities, foreign
cultures and histories, risk managements, etc., and this report shows
that each respective division staff are innovating and responding to
stakeholders in various ways.
When it comes to environmental targets and results, we must consider
the positive and negative environmental aspects separately. Businesses
that have positive environmental aspects are those that produce an
win-win outcome, achieving both economic gains and environmental
improvement. For Hitachi Metals Group, development and sales of
Eco-Products fit this category. In fiscal 2009 the proportion of sales
generated from Eco-Products rose to 73%. In contrast, negative
environmental aspects are those that result in a negative influence on
the environment, such as CO2 emissions, soil and water pollution,
waste, etc. Compared to 1990, the Group has successfully decreased
these sorts of hazard risks to some extent, but further efforts are still
required for them to minimize these risks. Such efforts are linked to
resource and energy conservation, and eventually result in a decreased
burden on forests and waterways, helping to conserve biological
diversity. Meanwhile, their initiatives in the realm of compliance, which
became a problem with the violation of the Antimonopoly Act, are being
steadily implemented.
Most environmental targets have been achieved, but the issue of
workplace safety (fatal accident of employee) requires consideration.
There is also a need to pay more attention to legal compliance in
overseas offices. These issues have been recorded in this report, and I
think the future challenge for Hitachi Metals Group will be to advance
their initiatives on CSR at the entire group level including overseas
offices.
July 15, 2010
The key factors critical to promoting CSR are a corporate vision and
commitment of managers. The book “Built to Last: Successful Habits of Visionary Companies” by J. Collins and J. Porras states that it is
important for companies to "stimulate progress by upholding their
fundamental philosophy." In this CSR report, Mr. Hiroyuki Fujii, the
new President and CEO, stated in his message the corporate
philosophy of Hitachi Metals Group: that is, contributing to society by
creating "the best possible company." The Code of Conduct for Hitachi
Metals Group Companies has been established based on this
philosophy, and a strategy to stimulate progress, cal led the
Medium-Term Management Plan, has been formulated. One target set
forth in the Medium-Term Management Plan is to increase the
proportion of sales generated by new products, composed mainly of
Eco-Products, to 30% in fiscal 2012.
What is essentially required for companies is to establish a mechanism
which promotes progress based on an unalterable philosophy,
regardless of any changes in the external environment. Hitachi Metals
Group has realized its growth by diversifying its businesses through
developing diverse products based on new innovative technologies.
This stance is reflected in the fact that R&D expenditure has not fallen
as much as profit, despite a fall in income and profit due to the
recession of the last two years.
The thing that stands out in their CSR report is innovative ideas. Since
fiscal 2009 Hitachi Metals has improved its stakeholder reporting by
publishing digest versions summarizing issues for the general public,
and posting detailed information on its website for stakeholders who
seek specialized information. In fiscal 2010 they have been holding
round-table discussions for young and mid-career staff, and collecting
grassroots ideas on CSR from the work sites themselves. CSR covers
many areas including compliance, fostering human resources,
Hitachi Metals’ Answer
Based on our corporate philosophy of "contributing to society by creat-
ing the best possible company," our management has been respon-
sive to changes in the external environment. For example, we concen-
trate management resources on developing Eco-Products in response
to customer needs. In terms of manufacturing process, we promote
eco-craftsmanship (monozukuri) through process innovations. We at
Hitachi Metals Group will further strive to respond to the expectations
of society by continuing CSR activities with our corporate philosophy
and the Code of Conduct based on it as guideposts.
The issue of workplace safety that you raised is indeed deeply regret-
table. At present we are taking steps across the Group to avoid such
an incident ever occurring again. This is based on our policy of "safety
comes first." In the context of the ongoing progress of globalization,
we have been proactively working for legal compliance with a global
perspective, in line with our Code of Conduct, which states that "we
will comply with all relevant international conventions and the laws of
each country." Taking this further, moving forward we will act with
strong ethical views.
ProfessorFaculty of Humanity and Environment, Hosei University Kozo Horiuchi
Senior Vice President,Representative Executive Officer and DirectorHitachi Metals, Ltd. Kimio Hanamura
Corporate Data
Hitachi Metals Group Major Manufacturing Facilities (As of the end of March 2010)
Corporate Profile
Establishment:
Capital:
Chief Executive Officer:
Number of Employees:
Yasugi Works2107-2 Yasugi-cho, Yasugi-shi, Shimane 692-8601, Japan
High-Grade Metal Products and Materials
HMW, Ltd.1-9-1 Kitahama, Wakamatsu-ku,Kitakyushu-shi, Fukuoka 808-8558, Japan
Tottori Works70-2 Nan-ei-cho, Tottori-shi, Tottori689-1121, Japan
Kumagaya Works(NEOMAX Company)
5200 Mikajiri, Kumagaya-shi, Saitama360-8577, Japan
Yamazaki Manufacturing Center2-15-17 Egawa, Shimamoto-cho,Mishima-gun, Osaka 618-0013, Japan
Kyushu Works35 Nagahama-cho, Kanda-machi,Miyako-gun, Fukuoka 800-0393, Japan
Moka Works13 Kinugaoka, Moka-shi, Tochigi 321-4367,Japan
Kumagaya Works(Automotive Components Company)
5200 Mikajiri, Kumagaya-shi, Saitama360-8577, Japan
Kuwana Works2 Daifuku, Kuwana-shi, Mie 511-8511,Japan
Products and Businesses:
Group Companies:
Headquarters:
High-Grade Functional Components and Equipment
Electronics and IT Devices
April 10, 1956
¥26.3 billion (As of the end of March 2010)
Hiroyuki FujiiPresident, Chief Executive Officer and Director
Hitachi Metals Group: 17,806 (As of the end of March 2010)
Manufacture, sales, and service of high-grade metal products and materials; electronics and IT devices; high-grade functional components and equipment; and services and other activities
65 subsidiaries, 10 affiliates
SEAVANS North Building, 2-1 Shibaura 1-chome, Minato-ku, Tokyo 105-8614, JapanTel: +81-3-5765-4000 Fax: +81-3-5765-8311
Consolidated Financial Highlights (Years ended March 31, 2010) Hitachi Metals Group CSR
Social ReportEnvironm
ental ReportEconom
ic Report/Corporate Data
Net sales Operating income Net income Capital expenditures Research and development
Return on equity
13.1
11.7
10.0
590,678646,311
701,075
200820072006
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
02009 2010
Millions of yen
47,502
54,72259,698
200820072006
70,000
60,000
50,000
40,000
30,000
20,000
10,000
02009 2010
17,165
22,062
27,034
200820072006
30,000
25,000
20,000
15,000
10,000
5,000
0
-5,0002009 2010
29,640
36,787
49,327
200820072006
60,000
50,000
40,000
30,000
20,000
10,000
02009 2010
12,05412,965
13,283
590,704
15,058
43,768
13,083
200820072006
14,000
12,000
10,000
8,000
6,000
4,000
2,000
02009 2010 200820072006
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0
-2.02009 2010
%
431,683
13,349 1,937
16,485
10,626
1.0
Millions of yen Millions of yen Millions of yen Millions of yen
Printed with 100% vegetable oil ink containing no VOC (volatile organic compounds).
Printed on paper made with wood from forest thinning. “Morino Chonai-Kai” (Forest Neighborhood Association)—Supporting sound forest management.
Please recycle when you are finished withthis report.
Printed in Japan
Catalog No. HM-45(E)-2010Printed in Sep. 2010(H) HT3