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Basic Policy of Corporate Citizenship Initiatives

In its NEC Way corporate philosophy, NEC declares its commitment as a social value creator to the creation of social values of safety, security, fairness and efficiency as well as the realization of a sustainable society in which everyone can fulfill their human potential.

Based on this philosophy, all members of NEC, from executive officers to employees, are promoting the company's corporate citizen initiative “NEC Make-a-Difference Drive” as good corporate citizens to help solve mid- to long-term social issues. NEC is doing this under three universal themes - "human resource development", "environmental preservation" and "local contribution and disaster support" - with the cooperation of local communities, NPOs, NGOs, local governments, universities, etc. Local communities play the key role in solving social issues and, as a company trusted by the public, NEC would like to help them solve these issues. All this is connected to one of NEC's Code of Conduct principles: coexistence with local communities.

NEC sees this NEC Make-a-Difference Drive as one of the platforms for promoting the "development of socially literate human resources" and "dialogue and co-creation with stakeholders", both of which are categorized as an ESG-based business priority theme of "materiality". The company provides its employees with opportunities to gain hands-on experience with regard to social issues that NEC should address as a social value creator, through dialogue and co-creation with diverse stakeholders including local communities and different sectors of society. NEC believes that a major role in social issue-driven business creation will be played by people who acquire the mindset for volunteerism and co-creation through these opportunities and who are socially literate enough to quickly realize the issues faced by customers and society.

Basic Policy of Social Contribution Program Creation

To effectively carry out socially relevant and sustainable programs, NEC has established basic policies in the creation of social contribution programs and the guidelines in collaborating with NPOs.
In addition, we conduct yearly evaluation and refinement of the programs based on social circumstances, independence level of partners, and the directions of NEC’s business strategies.

1.Effective utilization of management resources

  • Management resources: funds, products, human resources, facilities, information, and knowledge, etc.
  • Relationship with businesses

2.Partnerships with NPOs and NGOs

  • Promoting solutions of social issues based on win-win relationships.
  • Supporting the creation of social businesses.
  • Strengthening NPO foundation.

3.Participation of officers and employees, cooperation with domestic and overseas affiliate companies

  • Promotion of volunteer activities by officers and employees
  • Promotion of initiatives for cooperation with NEC domestic and overseas affiliate companies

4.Contributing to improving our corporate value

  • Visible activities of NEC's presence
  • Cutting-edge volunteer programs
  • Promoting information delivery

Guidelines for Coordination with NPOs

We assess the partnership using the following five criteria when establishing a relationship with NPO/NGO.

1.Certified by NPO Law (In principle)

2.Activity record

  • Must have advanced and unique activities, and prior history.
  • Must have specialized know-how, the ability to complete projects and the ability to output information.

3.Financial details

  • Making efforts to disclose the status of financial management, revenue and source of funds.
  • Have diverse financial resources.

4.Organizational foundation

  • Clear mission, vision, goals and personnel makeup.
  • Clear division of labor between management, specialized staff, paid staff, volunteers, etc.

5.Leadership and management

  • Clear leadership, enthusiasm, and high quality of responsible personnel.
  • Considers governability, transparency, and accountability.

Social Contribution Program Assessment System

We assess all social contribution programs each year based on the social contribution program assessment system.

Social Contribution Program Assessment System

* Both "Social value" and "Value for NEC" are quantified and assessed for each item.

Assessment criteria: Social value

Public Interest
  1. Tracking the needs in the community and society
  2. Not limited to a few beneficiaries or participants, but contributes to a wide range of people
  3. Working together with NPOs, public administrations and universities
  4. Obtaining opinions (feedback) from program partners
Effectiveness

  1. Specific goals are made for social issues and results are being achieved.

    • Output (Result)
    • Outcome (Effect)
    • Impact (Spread)

  2. The approaches are being developed effectively.

    • Contains ideas and mechanisms to spread its effect
    • Contains global elements

Assessment criteria: Value for NEC

Strategy
  1. Continuously improving programs based on PDCA management.
  2. Utilizing resources (funds, products, human resources, facilities, information, and knowledge).

  3. Collaborating with NPOs.

    • A win-win relationships is established.
    • Supporting a stronger NPO foundation.
    • Promoting communications with NPOs.
Effectiveness
  1. Contributing to businesses (business creation and sales contribution)
  2. Contributing to nurturing employee human resources.

  3. Contributing to improving corporate reputation and building trust from the community and society.

    • Program participants are greatly satisfied.
    • The amount of advertisement cost conversion for PR results exceeds investment cost.
    • Programs are introduced in seminars, forums, symposiums, popular SNS, etc. as case studies.
    • Awards are given by external organizations or programs are evaluated by SRI, etc.

Social Contribution Expenses