Stakeholder Review

The NEC Group is promoting CSR management based on ISO 26000, an international standard providing guidelines on social responsibility. In fiscal 2012, NEC continued to implement a Stakeholder Review based on the ISO 26000 approach.
Given that the Stakeholder Review forms the basis of CSR management, NEC will strive to make continuous improvements to its activities by referring to the matters pointed out in the review.

Stakeholder Review

Continuing on from fiscal 2011, in fiscal 2012, the CSR Review Forum-Japan, an alliance of NGOs and NPOs, consumer organizations, and labor representatives, undertook a review of the CSR management policies, structures, and measures of the NEC Group, based on the ISO 26000 standard.
The review focused on the progress of initiatives to tackle issues identified in the fiscal 2011 review, while also broadly examining the Group following the seven core subjects of the ISO 26000 standard.
The forum's opinions on CSR management in general and on each of the seven core subjects were as follows:

1.CSR Management

1）The NEC Group’s corporate philosophy

Recently, it is not uncommon to hear that people no longer have a clear picture of what it is that the NEC Group does. Through its corporate philosophy, NEC has indicated that its goal as follows: "NEC strives through ‘C&C’ (Computers and Communications) to help advance societies worldwide toward deepened mutual understanding and the fulfillment of human potential." Today, while the NEC Group faces the urgent task of rebuilding its business, we hope that NEC is going straight to C&C.

2）Global CSR management

3）Due diligence

Globalization is an important issue for the NEC Group, both in business and in CSR management. As it works to build a global management structure encompassing its five worldwide business regions and Japan, we expect that the NEC Group will also work to put in place structures for promoting information gathering and other comprehensive, company-driven efforts in each region regarding key issues such as human rights and occupational safety. Over the medium term, we believe that the NEC Group must engage in dialogue with stakeholders in each region.

The ISO 26000 standard requires companies to understand the negative impacts they have on society. A company’s impact on society can come back to it in the form of risk, and overall responsibility for managing that risk lies with the Internal Control Promotion Division. At the same time, the company must also understand the negative impacts it has on society that may not immediately manifest themselves as risk, and work to develop a mechanism for avoiding or mitigating such impacts. We expect that the NEC Group will work to spread its approach to due diligence internally and move ahead to build the necessary structures.

4）Diversity

Like most Japanese companies, the NEC Group continues to lack of diversity. And yet, respect for diversity is an essential strategy as NEC moves forward with global management. We expect the Group to lay out a vision for promoting diversity, and to establish concrete short- and long-term goals.
NEC also has experience in testing options for telecommuting, and we hope they will demonstrate to society at large their plans for advocating and encouraging diverse work styles.

5）Partnerships between the CSR division and other relevant divisions

One point of improvement from last year is the progress made in the alliance between the CSR division and other relevant divisions. The CSR division works in close partnership with the human resources (human rights), general affairs (occupational safety) and the materials divisions (supply chain CSR), and we would like to laud their effectiveness in developing mechanisms and raising awareness. We look forward to seeing these efforts extended in other areas.

2.Organizational Governance

1）Reflecting societal feedback in management

Under ISO 26000, stakeholder demands are expected to be reflected in management, and we believe that interviews with outside directors and others are important to these reviews.

2）Internal control and risk management, business continuity

The NEC Group has built a sophisticated system of internal controls, based on the key elements of compliance and risk management. Following the Great East Japan Earthquake in fiscal 2012, the company made progress in reviewing its disaster planning on a company-wide level, and we look forward to seeing a whole picture of its rebuilt BCP in next year’s report.

3.Human Rights

The NEC Group Charter of Corporate Behavior and NEC Group Code of Conduct both lay out provisions respecting human rights, and to avoid harm to human rights, the company is working to build a basic mechanism for human rights due diligence.
As part of spreading this awareness, the NEC Group has established robust training in human rights domestically. Going forward, we expect that the NEC Group will establish a vision for the kind of global company it wishes to become, and goals for achieving that vision, and continue to take the incremental steps necessary to ensure those goals are reached.

4.Labour Practices

Our review of labour practices in fiscal 2012 focused on occupational health and safety (OH&S). We give high marks to the NEC Group for its efforts to build a mechanism for monitoring the status of OH&S at its overseas sites around the world, and for introducing an OHSAS 18001-based management system at the 11 companies in its global manufacturing group.

5.The Environment

The NEC Group Environmental Management Action Plan 2017/2030 continued to show solid results in fiscal 2012. Going forward, as the environmental management systems and energy storage systems developed by the NEC Group see wider use across society, we expect this will help to build a low-carbon society.
In addition, we are convinced that the environmental technology and expertise the NEC Group has accrued to date will not only contribute to resolving issues of global warming and energy, but will become a major weapon in the company’s business strategy. “Ecology through IT” is also a key phrase in terms of strategy. It would be a waste to identify energy alone as a business priority for fiscal 2013, and we believe the NEC Group’s strategy should represent both its outstanding environmental solutions and its energy business.

6. Fair Operating Practices

1）Supply chain management

In surveying its suppliers, the NEC Group has conducted surveys in writing, focusing primarily on domestic suppliers, but this alone is inadequate for gaining a grasp of the real situation. We laud the company for its plans to put in place a framework for on-site inspections of its suppliers in China, India, and other locations. In last year’s review, we asked the NEC Group to expand management to secondary suppliers, and we appreciate that this has been reflected in the survey guidelines.
In terms of response to the issue of conflict minerals, we believe the NEC Group has made reasonable progress in putting mechanisms in place in preparation for rules to be established by the U.S. Securities and Exchange Commission.

7.Consumer Issues

1）Customer satisfaction, product quality and safety, Universal Design (UD), information security

The NEC Group has established policies and rules in each area, put the necessary structures in place, and has a variety of awards systems to provide incentive; its approach to developing its people is clear.

2）New areas of consumer concern

Sustainable consumption and consumer education are among the important social issues for consumers and citizens at present. As a leading company, we expect the NEC Group to engage in proactive initiatives to address these issues. And, to respond to the needs of consumers and citizens, it is important that NEC, as a business-to-business-to-consumer organization, identify and engage in dialogue with those stakeholders on which it has the greatest impact. Its advanced process for UD development could become a model for these efforts.

8.Community Involvement and Development

The NEC Group has made solid progress in this area, with the establishment of the Revival Support Promotion Office to provide ongoing support for post-disaster recovery in the Tohoku region and enhancement of its program to provide support to social entrepreneurs. It has also begun work on BOP businesses, and implemented self-assessments based on a system for evaluating social contribution programs. In the coming year, we expect the NEC Group to disclose the social (and regional) impact of its activities. At the same time, the effects of the flooding in Thailand and other events have reduced the implementation rate for the Make-a-Difference Drive. Viewed overall, the MDD program is one of the NEC Group’s treasures, and the company should work to ensure that as many employees as possible become involved.

Review Panel

Chief Reviewer: Tomohiko YAMAGUCHI　CSR Review Forum-Japan
Sachiko KISHIMOTO　CSR Review Forum-Japan/Center for Public Resources Development
Kenichi　KUMAGAI　The Japan Association for Advancement of ILO Activities
Hideki WAKABAYASHI　Amnesty International Japan
Kimiko HORII　Research Institute of Self-Esteem
Saburo KATO　Japan Association of Environment and Society for the 21st Century
Konoe FUJIMURA　Japan Association of Environment and Society for the 21st Century
Kaori KURODA　CSO Network Japan
Yukiko FURUYA　Nippon Association of Consumer Specialists

Stakeholder Communication

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