Foster Group CSR Management

Foster Group CSR Charter

Foster Group’s activities are under the corporate creed of “Sincerity”, and vision of “To make contributions for future society through acoustics” and its mission “Through acoustic products or its solutions, a total commitment to help create a comfortable life and pleasure of communication around the world. A truly global enterprise our future society counts on.”

A subject of “Corporate Social Responsibility” itself is a universal proposition in the deployment of corporate management at Foster Groups. As shown in the corporate creed, a CSR way of thinking has been behind this company from the time of its foundation.

CSR or CSR Management that suit Foster Groups, who extends business activities globally, are

“to concentrate on its core business based on the corporate creed for the purpose of sustainable development of a company as a global corporation, and to fulfill its social responsibility by enhancing the corporate value while raising the stakeholder satisfaction not only in financial aspect, but also in the harmony of environment and society aspects”. The CSR management means that the corporation fulfills its social responsibilities through such activities.

In achieving this objective from global perspectives, the Foster Group and all of directors and employees will initiate CSR activities based on followings.

  1. We stand and act on our corporate creed, vision and mission.
  2. We act in accordance with the “Foster Group Corporate Action Guideline” that a company should comply, and the “Foster Group Code of Conduct for Staffs” that all directors and employees of the group should abide by.
  3. We regard variety of stakeholders including customers, employees, suppliers, shareholders and investors, and local communities as the subject of our CSR activities, and pay respect to diversified sense of “value”, “culture” and “economic, environmental or social” circumstances that vary depending on countries or areas.
  4. We act in accordance with laws, regulations of home and abroad, and international rules by responding to various requirements. Those requirements are compliance to corporate ethics, security of product quality and safety, environmental protection, improvement of work environment, maintenance of employment, development of human resources, respect to human rights, fair competition, contribution to society and community, and proper tax payment.
  5. We perform proper risk control, disclose information timely and adequately with accountability to support the reliability of CSR, and put value on having dialogue with stakeholders.
  6. We identify company representatives responsible for ensuring implementation of the management systems and associated programs in order to comply with this CSR Charter. Status review, with personnel designated by managements, is held on a regular basis.

By conforming to this CSR Charter, we hereby declare to engage in the “corporate activity with sincerity.”

Foster Group CSR Promotion

Foster Group CSR Systems

As shown in the following “CSR System,” Foster Group has established the CSR Committee with representatives of related sections as core members at its headquarters. CSR Committee Meetings are held monthly with the attendance of officers in charge of CSR from the headquarters as well as staff at overseas bases via video conferencing to ensure the monitoring and collaborative promotion of CSR activities on a group-wide basis, including overseas business locations, each of which has an appointed person responsible for the promotion of CSR activities.

Conceptual Drawing of CSR Management

The underlying concept of the CSR management is a triple bottom line, which evaluates the corporation from the three aspects: economy, environment and society. CSR management provides improved corporate value and new value to stakeholders not only in the financial (economic) aspects, but also in the sustainable development of non-financial (environment and social) aspects.

Core of CSR Activities

The Foster Group issued the first version of its CSR Charter in 2006, and updated it to pursue global versatility and universality in 2010, by incorporating the EICC* Code of Conduct, the CSR standards established by U.S. Electronic Industry Citizenship Coalition, as our basic policy. Items originally set out by the Company have also been added to the Code for reinforcement of the Group’s CSR management. In addition to these efforts, we also implement our CSR activities in compliance with the United Nations Global Compact and the ISO 26000 standards.

  • * Electronic Industry Citizenship Coalition (renamed Responsible Business Alliance in 2017)

Development of CSR Materiality

The Foster Group developed the CSR Materiality in 2016. The development method and procedures were determined by extracting the important items for CSR from the policies and their items set out by the Company.
The basic policies and extracted items are:

  1. The Major policy “To establish a base of global business and create a profitable structure toward the year 2020” from “2016 Managerial Policy.”
  2. The following two items were extracted from “Annual TQM (Total Quality Management) Policy for Fiscal Year 2016”:
    ・Draw and execute an improvement plan suitable for the maturity of each site for “customer claim reduction” measures.
    ・Establish a global environment management system and embody and promote the orientation of “energy management” targeting 2020.
  3. The following two items were extracted from “Environmental Policy”:
    ・Conserve the global environment by promoting resource and energy saving in product development and design.
    ・Prevent contamination and reduce CO2 emissions in all phases of business activities including manufacturing and disposal.
  4. The item “Raise the awareness of environmental protection and biodiversity and thereby develop human resources who contribute to society” was extracted from the “Medium-term Environmental Policy.”

The extracted materiality items are as follows:
Responsibilities in the value chain: Decent work, quality, being customer oriented and environmental conservation

  1. Global human resource development and utilization
  2. CSR-based global Group governance

For item 1, we considered the entire value chain as a primary body and divided it into items for enhancing positive effects and for minimizing negative effects. From each of those items, we extracted the detailed items.

CSR Materiality-based PDCA

Materiality Contents Results and Progress in Fiscal 2017 Future Plan
1. Responsibilities in the value chain: Decent work, quality, customer orientation and environmental conservation Enhancing positive effects Decent work As work style reform project, we implemented a variety of activities such as the full-scale introduction of flex-time system and work-athome program as well as recommendation of twice-weekly no overtime day and Premium Fridays.
Also, for health enhancement activities, we implemented the "Health Point System" and "Smoking Cessation Support Program." (Refer to page 30)
We have set targets for fiscal 2018 as follows: The rate of paid holidays taken: 77%, the total working hours: a year-on-year reduction by three hours per month. For health enhancement, we aim to maintain the rate of periodic health examinations taken at 100% and achieve the rate of specific health guidance taken at 80%.
We have been continuously registered with the United Nations Global Compact and reviewed activities regarding human rights and labor for 10 principles in four different areas. We will continue to collect information through GCNJ subcommittee activities and strengthen our activities in cooperation with the other member companies and organizations.
Quality and sustainable product supply We maintained a record of zero failures that would have a serious social impact (human life, property, environment and so on). We will maintain a record of zero failures that would have a serious social impact and reduce customer complaints.
Minimizing negative effects LCA (Life Cycle Assessment) To calculate Scope 3: GHG reduction, we started a review to define the lifecycle range and set KPIs. We will globally expand the calculation range of Scope 3: GHG reduction and develop an activity plan for the future based on our reviews.
Scope 3: GHG reduction Reducing GHG (green house gas) emissions To reduce GHG, we have started the calculation in Scope 3, in addition to Scopes 1 and 2, which were already calculated. (Refer to page 49) We will globally expand the calculation range and work to reduce GHG emissions in the entire supply chain.
2. Global human resource development and utilization Global Human Resource Development In addition to the global grade system, which was started last year, we proceeded with preparations at the headquarters for the introduction of a new personnel system in fiscal 2018, which allows employees to select their career design globally.Furthermore, we ran the Global Leader’s Training and facilitated the Overseas Trainee Program and international employee reassignment within Group companies, among other initiatives. While continuing the current activities, we will stabilize the new personnel system, establish a global human resource utilization base and develop global leaders.
Penetration of our philosophies To share our philosophies, we continually implemented Foster Rhythm Workshops and various kinds of educational programs in Japan and at overseas sites. We will continue to adapt the philosophies of Foster Rhythm to concrete activities for their further penetration into the entire Group.
3. CSR-based global Group governance Organization’s global system establishment and governance enhancement We selected the persons in charge of CSR at the headquarters and seven Group companies and maintained a global CSR structure. We will continue the CSR promotion activities for Group companies based on the established CSR promotion system.

Expansion of CSR In-house Education

Following the “Global CSR Communication Conference” in 2016, we held CSR In-house Communication Meetings at overseas sites in Vietnam (three sites, August 2017), China (one site, September 2017), and Myanmar (one site, February 2018) in fiscal 2017 to deepen the mutual understanding between field sites and us through in-house expansion. Together with the CSR-related departments at overseas sites, we exchanged opinions through the accumulation of knowledge, information sharing and expansion of Foster Rhythm as well as other initiatives to accelerate the Foster Group’s CSR activities. After the conferences, we also received requests for further opportunities for site education and similar information sharing. We will continue to provide places for periodic communication to deepen mutual understanding beyond cultural, ethnic and regional borders and unite as the Foster Group to actively promote in-house CSR education.

Communication Meeting at the site in Myanmar

Communication Meeting at the site in Vietnam

CSR Assessments and Audits

CSR Internal Audits

In order to penetrate CSR at the manufacturing sites, the Foster Group is implementing CSR internal audits. We implemented 43 total internal audits at the facilities in the last fiscal year. We implemented the audits by basically using the local laws as the standards and guidelines and also by referencing various social requests, such as the EICC Code of Conduct, EICC VAP (Validated Audit Process), SA8000 and customer standards to confirm compliance with the activities and check for any measures beyond the laws.

Customer Audits and Assessments

To meet the various requests of customers, we accept audits from customers at manufacturing sites. In terms of the environment and occupational safety and health, our production facilities in China and Vietnam received 10 on-site audits from four corporate customers during the period from April 2017 to March 2018. Over the course of the year, we also received 17 requests (from 12 different customers) to complete and return the Self-Assessment Questionnaire, and we responded accordingly.
We will continue to focus attention on the environment and safety in our manufacturing practices and address requests from customers with sincerity.

External view of the factory in China

Customer audit meeting (China)

Surveys from External Organizations

The Foster Group also responded sincerely to the CSR surveys received from external investigatory bodies. Last year, we received and responded to eight surveys regarding CSR, environmental management, ESG, SRI and others.
Among them, as a result of the “CSR company ranking survey,” which was conducted by Toyo Keizai Inc., we ranked 228th (out of total 1,413 companies), which was an improvement from 248th (out of total 1,408 companies) last year.
We will continue to address the survey requests from external investigatory bodies with sincerity.