Social

Relationship with the Supply Chain

In our global expansion, we have developed the “Basic Principles of Procurement” for the supply chain, including ourselves and our suppliers, based on which we build fair and healthy relationships.

Responsible Procurement

At Foster Electric, we solve social issues through business and contribute to the development of society through sustainability initiatives based on our corporate creed, “Sincerity.”
“Sincerity” includes the idea that Foster Electric should be sincere in all of its interactions with stakeholders. Since our foundation, we have continued our corporate activities with the philosophy of sustainability at the core of our business management. For our procurement activities, we have established the “Basic Principles of Procurement” and the Foster Group Supplier Sustainability Code of Conduct (hereafter, the “Sustainability Code of Conduct”), under which we develop fair, sound relationships in our supply chain and work to build a sustainable supply chain, to meet increasing social demands.

Representatives and Structures

The Procurement Department belongs to the Production Division and performs activities under the head of the division (Director) as the repre-sentative. Each manufacturing site has a procurement department. We are promoting sustainability activities in a company-wide manner and enhancing the activities in cooperation with each manufacturing site.
We operate and manage basic policies and key sustainability issues by sharing information at Sustainability Committee meetings (held monthly), which are chaired by the CEO/President with core members representing related departments, global procurement meetings with representatives of the Procurement Department from all sites (held biannually), and the Supplier Procurement Conference, attended by suppliers, our president and other directors (held once every two years).

Initiatives to prevent bribery and conflicts of interest

The Foster Group Code of Conduct for Staff stipulates that we shall comply with laws and internal rules related to entertainment and gifts to and from customers and suppliers, and prohibits us from providing and accepting profits in violation of such laws and rules. Specifically, we have set strict rules on transactions, including the provision and acceptance of money and coupons, acceptance of gifts, provision of goods as gifts, and provision and acceptance of entertainment.

Supply Chain Due Diligence

The Foster group conducts supply chain due diligence to ensure compliance with the Sustainability Code of Conduct. Our Code of Conduct is based on international standards and principles, such as the Responsible Business Alliance (RBA) Code of Conduct, the Automotive Industry Action Group (AIAG) and Drive Sustainability, and we request our suppliers to support them. To clearly express these requests, we have made it mandatory for our suppliers to agree to the Sustainability Code of Conduct before starting transactions with us.
The contents of the Sustainability Code of Conduct include matters regarding labor and human rights, health and safety, the environment, ethics, and management systems reflecting laws, ordinances and international norms. It is available in Japanese, English, Chinese, and Vietnamese on our website. When revisions are made, we distribute it to all suppliers, making sure they are informed of the updates.

Initiatives for Tier-2 and Lower-Tier Suppliers

We request that our suppliers inform our tier-2 and lower-tier suppliers of the requirements in the Sustainability Code of Conduct and have them confirm their compliance.

CSR Self-assessments and Corrective Activities

To promote sustainable procurements in the supply chain, we request that our suppliers conduct CSR self-assessments. At the Foster Group, we use the CSR Procurement Self-Assessment Questionnaire prepared by the Global Compact Network Japan. The CSR self-assessments are consistent with international standards and guidelines including the Ten Principles of the UN Global Compact, ISO 26000, and the GRI Standards. The content of the self-assessments is wide ranging, including corporate governance, human rights, labor, the environment, fair corporate ac-tivities, quality and safety, information security, supply chains, and harmonious co-existence with local communities. Above all, we value the Ten Principles of the UN Global Compact. Suppliers are asked to ensure the proper payment of wages, the fairness of work hours, and the status of initiatives that are being taken to control excessive work hours. They are also requested to build a system for corrective activities, among other efforts.
Based on results of the self-assessments, we conduct audits, provide guidance for corrective and improvement actions, or implement awarenessraising activities. When a particularly status problematic issue is identified, we suspend orders or take other punitive actions in accordance with the selection criteria.

Overview of Our Supplier Partners

We work on sustainability initiatives throughout the entire supply chain and drive responsible procurement activities with Group companies and suppliers.

Results of CSR Self-assessments and Audits

In fiscal 2023, we had approximately 300 suppliers conduct self-assessments, and no violations of standards were found. However, we will continue to request that suppliers conduct self-assessments regularly and take corrective action immediately if any problems are identified, in our efforts to build a sound supply chain.

Intra-Industry Collaboration (Engagement)

Since fiscal 2016, we have been a member of the Global Compact Network Japan (GCNJ), a network of the United Nations Global Compact (UNGC), and have engaged in the activities of the Supply Chain Subcommittee of the GCNJ. In this subcommittee, we have discussed the latest global supply chain trends, beyond the boundaries between industries, and the practical issues regarding sustainable procurement that are faced by each industry and company. We work on tasks such as the creation of deliverables for solving the above practical issues as well as the consideration and revision of CSR self-assessments. In addition, because the number of minerals to be managed to ensure responsible minerals sourcing is increasing, we participate in the Outreach Meeting hosted by the Responsible Business Alliance (RBA) and explanatory meetings on responsible minerals sourcing hosted by the Japan Electronics and Information Technology Industries Association (JEITA), to ensure that information is shared regarding the latest trends and to develop intra-industry collaborations that raise awareness in the supply chain and improve the efficiency of investigations into these minerals.

Establishment of the Green Procurement Standard and Collaborations with Suppliers

We have established the Green Procurement Standard, in which we have summarized the environmental aspects of our requests for suppliers. Our Environmental Policy is to (1) contribute to the realization of a sustainable society by continually improving our environmental management systems, (2) establish a decarbonized society, (3) realize resource recycling, (4) be in harmony with nature and protect biodiversity, (5) comply with domestic and international environmental laws and regulations, and (6) develop human resources who can implement environmental activities through awareness-raising activities and training.
We have published the Green Procurement Standard on our website along with written instructions, submission forms, and other documents. We request that they are also shared with tier-2 suppliers.
In addition, we hold an environmental briefing remotely every year in Japan, China, and Vietnam, where we have our business sites. Approximately 300 people from our suppliers participate in the briefing, where we promote compliance with environmental regulations.

Responsible Minerals Sourcing

To promote responsible minerals sourcing, we implement initiatives in accordance with the OECD’s due diligence guidance, aiming to have all suppliers provide information from smelters and refineries via the supply chain. At the same time, we promote responsible minerals sourcing throughout the supply chain to fulfill our social responsibilities. If a mineral involved in a conflict or the infringement of human rights should be identified in our supply chain, we take measures to discontinue the use of the mineral, such as by changing the supplier.

Education

The Procurement Department provides education and training to learn about Foster Electric's approach to sustainability and to acquire knowledge about compliance with the goal of developing human resources who can fulfill social responsibilities in its operations.
We have developed a compulsory curriculum for employees in charge of procurement, which includes courses on the environment (the reduction of CO2 emissions and environmentally hazardous substances), compliance (human rights and harassment), sustainability, and anti-corruption. In 2023, all Procurement Department employees took the required courses.
Regarding the supply chain, we held an environmental briefing remotely that was attended by 300 participants from approximately 200 suppliers. For important suppliers, we hold a global supplier meeting every other year and explain recent sustainability-related trends, policies to be implemented in the future, and the things we requests of them to 100 participants from approximately 50 companies. We are thus implementing initiatives to build a sustainable supply chain.

Quality and Safety Assurance

The Foster Group is promoting and deploying quality assurance activities based on the FOSTER TQM (Total Quality Management).

Our Quality Assurance Policies and Actions

Under our customer-focused philosophy, our policy is to carry out quality assurance activities globally together with all of our employees to deliver safe, eco-friendly products of reliable quality.
We promote our quality assurance activities in accordance with FOSTER TQM, which is based primarily on the maintenance and improvement of the quality management system (QMS) through daily improvements, the development of a system and operational procedures using diverse methods, and human resource development in quality management targeting all employees. We believe that we can satisfy our customers, society and our employees by focusing on these three primary initiatives while responding to changes in our business environment. We will strive to achieve long-term growth through these initiatives.

Maintenance and Improvement of the Quality Management System

We have been developing our quality management system by incorporating the latest quality standards and industry trends to fulfill the requirements of our customers and society. We will continue to work to evolve, aiming to achieve zero defects.

Development of a System and Operational Procedures

In our quality assurance activity system based on Advanced Product Quality Planning (APQP), we confirm matters steadily across all processes with a focus on each DR-0 to DR-3 gate, moving forward with quality assurance activities without omissions.

Enhancing Quality Awareness and Developing Human Resources in Quality Management

We have also made every November the Quality Month and hold a variety of events by involving overseas sites to improve quality awareness. We drive training in a company-wide manner for developing quality specialists at all levels.

Quality-related events including at overseas locations

 Quality improvement case exhibition

We hold this exhibition online by collecting cases of quality-related improvement and know-how we should share from headquarters and all overseas sites, and summarizing them in videos.

 Quality lecture presentation

We invite a speaker from another company, select a quality-related theme which can be told as an attractive story, share our cases and problematic points with the speaker and then have a comparison and discussion of contents and frameworks of activities.

 Global QC Circle Convention

We promote QC Circle activities and company-wide conventions of teams representing factories to improve on-site capabilities. Each year, a total of more than 100 circle teams are conducting activities at overseas sites under the theme of quality improvement. Among them, teams that won the QC Circle Convention at each factory give presentations of their achievements at the company-wide convention.

Developing quality specialists

We plan training programs on quality-related standard requirements and tools which not only provide knowledge but also include practical information thus driving the development of quality specialists with skill levels that can be leveraged in practical operations and on site.

Holding the Global Quality Meeting (GQM)

At this meeting, senior management from headquarters and overseas factories and sales companies share priority measures and issues faced by each division and site and determine commitments for the next fiscal year, thus unifying the overall company's direction and awareness regarding quality.

Relationship with Customers

Corporate Customers (Foster Group Sales Department)

Policies

We manufacture and sell products with a focus on acoustic transducers for the Speaker, Mobile Audio and Other Segments. While many of our products are used as components for playing back music, people around the world come into contact with our products in many ways that are not limited to uses involving playing back music. Our products serve people in various settings in their lives as micro acoustic components for warning sounds, actuators for haptics and other products. The purposes of use of sounds and vibrations that we offer are expanding daily. Working together with customers around the world, our Sales Department acts every day to widely deliver the value of our products to realize our vision, “To make contributions for future society through acoustics.”

Structure

We engage in sales activities through five regional sales offices in Japan, the US, Europe, China and Asian countries and regions other than Japan and China. The value that is required is different in different markets around the world with different business customs, cultures and social situations. We have established a structure for satisfying customers around the world by sharing the value and ideas that only we can provide between regions while responding flexibly to local values. During the last few years, when business travel was restricted significantly, we established a system to enable inter-regional exchange to be more lively than ever before, transcending distance and time differences using new communication tools.

Activities

We emphasize making proposals for the future, and of course making sure that we deliver the products that are in demand every day. The things that are required of products change according to ever-changing social and economic situations, widespread environmental awareness, and many other factors impacting the business environment. By proactively proposing the functions that are appropriate for the sustainability of society in the future in addition to performance and prices, we will be a strategic partner that can be involved in development and design from a position that is closer to customers, achieving high-level customer satisfaction.

Customer Audit and Questionnaire

Operating businesses globally, we respond to various sustainability-related requests from over 70 corporate customers concerning labor, human rights, safety and health, the environment, ethics, and status of operation of management system related to them. During the one-year period from April 2023 to March 2024, we received and responded to a total of 41 sustainability-related surveys from 26 corporate customers. In addition, the Da Nang Factory (Vietnam), underwent an RBA audit that was requested by a customer. We will continue to enhance our sustainability initiatives by organizing and addressing issues identified through customer surveys and audits, while ensuring the transparency of our supply chain.
We will continue to drive sustainability-based manufacturing and sincerely respond to such requests.

Individual Customers (Fostex Company)

Policies

We provide high quality products at appropriate prices to deliver an enriched and comfortable life to customers who purchase those products. The company seeks to develop products that lead to impressive experiences and that provide peace of mind and satisfaction for the customers who select and own the Fostex brand. In its after-sales services, the company also pursues customer satisfaction by always promptly providing services from the customers' perspective.

Structure

We always listen to our customers' comments and seek the products that they need today and they will need in the near future. As such, we have established a project promotion structure across our sales and technical units. In addition to the domestic market, we also understand global needs to develop products specific to each region.

Activities

We share information with the dealers who are constantly in contact with our customers and also make efforts to listen to as many customers' voices as possible at exhibitions and trial listening events. As part of our educational activities for audio equipment, we offer speaker craft classes and lectures on working principles of speakers at universities, vocational schools, local junior high schools and in other places.

Initiatives to Improve Well-being

We respect the diversity of all of the employees working for Foster and value the environment which enables them to choose their workstyles and careers. We have defined well-being as a state where employees can maintain and improve their physical and mental health while ensuring that their work enables them to develop personally, be satisfied in their jobs and take pride in their contributions to society. We are actively working towards this goal. The well-being we aim to achieve is a state where employee engagement has been improved and employees are motivated to take the initiative and are given opportunities for personal development. We aim to create an environment where working for Foster contributes to the well-being of our employees.

1.Human Resource Development

Policies

Our human resource development is based on “continuous performance by linking various personnel systems with individual development goals determined by mid/long term business strategy and individual personality (strength/ weakness)”. We have formulated the Personnel Grand Design by viewing recruitment, development, utilization, assessment, and treatment organically and in an integrated manner from a long-term perspective, built a Personnel Framework that enables every employee to demonstrate their capabilities with pride and job satisfaction, and promote the development of human resources to solidify our human resource foundation for Foster in the next generation.

Ideal for human resource development

  • Personnel who embody our vision through their duties and who have a “strong will” and “initiative” to work toward their realization.
  • Personnel who do not remain complacent about the current situation but utilize every opportunity to improve their own abilities and grow with ingenious attempts and efforts.
  • Professional personnel who use their expertise to play a key part in strategy formulation and implementation and who can create value continuously.
  • Self-directing personnel who are conscious about their expected and assigned roles and missions and who can take responsibility for their own actions and results.

Basic policy

Initiatives for independent career development

Employees’ voluntary initiatives shaping their careers are essential in the development of human resources. Employees’ thinking about how they want to develop personally and the skills they need to acquire and acting accordingly will form the foundation of our human resource development and be a source of increased added value. We have established a career course system, which permits employees to choose options flexibly in accordance with the career plan and life stage of each, thus encouraging and helping employees to develop themselves independently under the system.

Initiatives for developing next-generation managerial human resources

As part of our continuing strategies for developing managerial personnel, we implement the Global Leadership Development Program (GLDP) to globally foster human resources for the next and future generations.
The GLDP was developed based on a program for fostering managerial human resources that we began to fully implement in 2010. This program was rebuilt and newly systematized into the GLDP in 2019. Intended for personnel who are candidates for key posts, this program is implemented to individually develop the capabilities appropriate for each post.
In addition, in fiscal 2023, we introduced the Start Up Program, a development program that solicits participants from among young employees to develop future managerial human resource candidates.

Initiatives for developing globally competitive human resources

We make use of new employee training, training for newly promoted employees, manager training, lectures by senior management, and other programs to improve inter-cultural communication skills, promote diversity, equity and inclusion (DE&I), and foster and enhance the global mind of our employees.
We promote various forms of international employee reassignment, including the Global-eye Program, an overseas training program for young employees, and the Overseas Trainee Program intended for mid-career employees, thus promoting the planned and continuous development of the next-generation of global leaders in a group-wide manner.
Further, in fiscal 2023, we resumed the program for the practical training of young employees at overseas plants, which was suspended due to the COVID-19 pandemic. We position practical experience at overseas manufacturing sites as a valuable opportunity to acquire the basics of manufacturing at Foster, including the basics of manufacturing processes, quality control, initiatives for production innovation, and global teamwork beyond national boundaries.

Initiatives for retaining young employees and developing young employees’ work-related skills as early as possible

To reinforce the system for following up on the growth of new employees and young employees in their early years at the company, we have introduced the Escort Runner Program, in which dedicated personnel staff serve as escort runners in the process of their development, in addition to the existing Brother/Sister Program and Mentorship Program by Officers. The staff in charge of these programs work together to meticulously support every young employee.
Further, as a new initiative, we held meetings of officers and young employees sitting in a circle, where young employees and officers are able to freely interact and exchange opinions on equal footing. In fiscal 2022, seven of these meetings were held with a total of 79 participants. The meetings included questions and answers about business strategies and lively exchange of opinions about concerns and recommendations of young employees beyond the boundaries between organizations and job classes.

Initiatives for passing down skills and developing engineers

We have introduced the A La Carte Training as a program for the development of engineers. This permits participants to choose necessary courses from among approx. 45 courses, with a total length of more than 200 hours, in accordance with their needs. We have also built an environment which allows them to watch videos of classes that have been taught in the past.
The greatest features of this program are that the content of the program is optimized for the practical operations at Foster because all the lectures are given by internal staff and the internal lecturers are being developed continuously as the training is being provided to participants.
This initiative is improving our technological capabilities, facilitating the passing down of skills, and serving as the foundation for Foster’s reliable technological capabilities.
Having been introduced in 2011, more than 4,100 people have participated in this training program.

Initiatives for reforming the organizational climate

Based on the results of stress checks and the employee satisfaction/engagement survey which we conduct every year, we perform an organizational analysis to identify issues. In addition, in fiscal 2022, we introduced the 360° Feedback System which encourages managerial employees to self-reflect and change their behaviors, thus enhancing initiatives to build a better workplace environment.
In addition to the above, we have continued to identify issues based on various requests and recommendations received through labor-management consultations via the “Shinjukai,” an employee organization that is an alternative to a labor union, the results of exit interviews with people leaving the company, the results of employee questionnaire surveys conducted after interviews for providing feedback on personnel evaluations, and other channels, and we ensure personnel measures reflect these issues.

Initiatives for instilling the philosophy and improving engagement

We implement the Foster Rhythm Project globally to instill our corporate philosophy. In this project, we have redefined “the ideal company” for the Foster Group and verbalized our principles and values, with employees themselves thinking on their own and generating ideas. We summarized these into a guidebook and a card and distribute them to our employees around the world. In addition, we continue to hold workshops and implement many training programs in our efforts to develop human resources who can embody our corporate philosophy and to create a lively organizational environment.
Further, the employee challenge support program (the Foster Incubation Program)* includes the production of short videos, FOSTER STORIES, as an initiative to tell the public about our strengths and appeal. These and other activities for improving engagement continue to spread and evolve.

* An internal initiative launched in 2020.
In this program, employees themselves launch projects to do something exciting or take on challenges leveraging their ideas and skills, and support for these projects is provided to them.

2. Diversity, Equity and Inclusion (DE&I)

Policies

The co-creation of value with our diverse human resources through global cooperation is essential for our manufacturing.
We are driving the creation of an organizational culture that respects the diversity of various personal qualities, such as age, gender, sexual orientation, physical trait, values, educational background, career, hometown, race, ethnicity, and nationality, and which at the same time permits employees to work vigorously with a peace of mind by catering to diverse needs, including individual circumstances and life events such as childcare and nursing care. We aim to build a Win-Win relationship between the company and its employees and create synergies with the realization of enjoyable personal lives for each employee, the creation of new value, and improvement in the company’s creativity and competitiveness.

Activity Promotion Structure

We have established the Diversity Management Section, a dedicated organization for promoting diversity, equity and inclusion (DE&I), within the Human Resources Department.

Main Measures and Activities (Headquarters)

Educational activities on diversity

We have set up a special website on diversity on our internal intranet, where we provide various information to foster a better understanding of the fact that active participation of diverse human resources will lead to new value creation by the company. On this website, we are also raising awareness of inclusive language, which is aimed at promoting communications with respect for diversity.
Further, in fiscal 2023, a lecture was held by our female director on the theme, “For each one of us to participate actively in our own way, let's be aware of unconscious biases and take the first step toward changing our behaviors.
In 2018, we added “Actions for diversity that have been taken” to the personnel evaluation items. We are working to create a more inclusive, diverse workplace by raising awareness of diversity among all employees and encouraging them to engage in self-driven activities.

Our activities for promoting understanding of LGBTQ+ (sexual minority)

We have been carrying out activities to deepen understanding of LGBTQ+ issues and promoting the number of allies (people who demonstrate their understanding and support for LGBTQ+ people). In fiscal 2023, we established the LGBTQ+-Friendly Promotion Committee to promote respect for people's sexual orientation and gender identity. We have introduced online training content, including a course for learning about LGBT to turn diversity into an organizational strength and a course for creating a harassment-free workplace. More than 90% of employees have received the training so far.

Promoting women’s empowerment

Having set a goal of increasing the ratio of female managers to 30% by fiscal 2025, we are developing female employees in a well-planned manner and supporting their career development. In fiscal 2022, we provided career training for young and mid-career female employees, in the form of lectures given by a female director. This training is aimed at deepening trainees’ understanding of diverse career options, so that they will have a clear picture of their career development, while building a network of female employees. Employees who received this training gave comments, such as “I could discuss career frankly with female employees of my generation, which was a valuable experience” and “It was a highly meaningful opportunity to reconsider my future career.”

Support for employees raising children and providing nursing care

To promote a working environment where employees who are raising young children or providing nursing care can work at ease, we have improved our system to support the balance between work and child care or nursing care. Since April 2018, we have extended the childcare leave period to three years maximum and the nursing care leave period to 183 days maximum. We have also expanded the range of employees eligible for sick/injured childcare leave from the those stipulated by law to all who are raising children who are junior high school students. We have also introduced an internal consultation service to provide appropriate advice and information individually. In fiscal 2023, we began providing an e-learning program titled “Nursing care seminar: living in the era of the 100-year lifespan,” and made it available at any time.

Initiatives for global human resource employment

We emphasize diversity in the employment of human resources as well. We are proactive in employing non-Japanese people to promote the globalization of human resources at headquarters, not to mention ensuring fair selection without discrimination. The percentage of overseas human resources among new graduates for the last ten years has been more than 20%. We are also emphasizing globalization in our mid-career hiring. In addition to recruiting human resources through conventional means, we are using diverse recruitment channels, such as establishing a program for employment transfer from overseas Group companies to headquarters in Japan. In doing so, we attract human resources with different nationalities and cultures to our organization, aiming to increase diversity and inclusiveness.

Reform of retirement pension plans

We worked on the reform of our retirement pension plans to expand options in response to the diversification of individuals’ life plans and to build a system that will enable stable pension payment into the future. As a result, in July 2022, we unified our retirement pension plans into the defined-contribution pension.
At the same time, we introduced the retirement benefit advance payment plan, which permits employees to receive advance payment of retirement benefits, to respond flexibly to needs associated with life events, such as their children’s education or the purchase of a home. The provision of these options also reflects the consideration we give to employees of non-Japanese nationality, whose future place of residence may not be Japan.

3.Labor (Labor Practices and Decent Work)

Policies

We believe it is important to create a worker-friendly environment where emphasis is placed on permitting each employee to achieve personal development through work and to demonstrate their capabilities while finding their job rewarding. We also seek to create an environment where employees with various backgrounds support each other spontaneously through daily communications and give ideas to each other. Under labor-management trust and mutual cooperation, we seek to create an organizational culture and develop various institutions, aiming to create an environment where employees with various lifestyles and aspirations can work in the style that suits their situation.

Activity Promotion Structure

In addition to the activities led by the Diversity Management Section, we have established the innovative working style project with cooperation between labor and management.

Main Measures and Activities (Headquarters)

Workstyle reform initiatives

Since September 2016, we have established the systems and culture that satisfy a variety of work-style to promote diversity and realize a work-life balance. In fiscal 2017, we applied the flex time system to all employees and introduced the work-at-home program. At present, we have fully introduced a work-at-home program without any limitations on eligibility.
In fiscal 2020, we reduced scheduled working hours per day by 15 minutes, to 7 hours and 30 minutes. At the same time, we enabled all employees to work using the flex time system without core time. We have engaged in creating a work environment where employees can work flexibly to suit their lifestyles regardless of time or place by fundamentally overhauling work procedures and utilizing ICT.
In fiscal 2021, we eliminated distance constraints to give employees more freedom to choose their place of residence. This has enabled us to respond flexibly to cases where an employee moves to a distant place due to the job relocation of their spouse.
We will continue to work on work-style reform to become a company that can offer a more desirable work environment and fulfilling career.

Initiatives to enhance the leave system and the leave of absence system

We are taking initiatives to enhance the leave system and the leave of absence system, aiming to promote the diversity of work styles, respond to diverse lifestyles, and improve working conditions.
We offer various leave systems, including the volunteer leave system, systems that grant a leave of absence to employees desiring to pursue further education and those who desire to accompany their spouses on overseas assignment. We also enhanced the Paid Leave Accumulation Program, which permits employees to accumulate expired annual leave, and offer familycare leave, leave for fertility treatment, and sick/injured child care leave. In addition, in July 2022, we introduced the Leave for Attending Child-related Event, so that employees can attend events such as their children's entrance ceremonies and graduation ceremonies without hesitation.
In fiscal 2023, we introduced the semiannual day for company-wide paid leave and a monthly day to encourage employees take paid leave in our efforts to increase the paid leave acquisition rate. (Paid leave acquisition rate for fiscal 2023: 74.1% *Including five days of annual paid leave)

Second job system

On September 1, 2020, we introduced a second job system. This reflects our belief that a wide variety of experience gained outside the company will increase opportunities to demonstrate one’s capabilities in new domains and achieve personal development, thus helping to increase the breadth and depth of career development of individuals. At present, more than ten employees are utilizing the second job system. They are broadening their perspective by doing work that they cannot experience in their primary jobs, thus acquiring diverse skills and expertise.

Health enhancement initiatives

Mental and physical health is essential for employees to feel job satisfaction and have a fulfilling career. We position employees’ health as an important management issue and are taking various initiatives. We have established a system where Industrial doctors interview new employees after they join the company to ensure their mental health, and have enhanced health counseling services by industrial health nurses, in our efforts to prevent mental health problems and illnesses, detect them early, and prevent them from becoming severe. In addition, to raise employees' health awareness, we implement the Health Point System. In this system, we give points to employees when they have received health examinations or comprehensive medical examinations, participated in mental health seminars, and received training related to mental health, for example, and provide them with health incentives. Each year, we run a number of online seminars on health issues. We have also built an environment which permits employees to view videos of the semi-nars. We have also introduced online training content for acquiring basic knowledge about mental health, and more than 90% of employees have received this training so far.
Our initiatives for improving employee health were evaluated and we received a “Certification of Excellent Company in Health: Gold Accreditation” from the Tokyo Promotion Council for Healthy Company Declaration in December 2018. (The certification was renewed on January 1, 2024.) In addition, in March 2024, we were certified under the Ministry of Economy, Trade and Industry's 2024 Certified Health & Productivity Management Outstanding Organizations (Large Enterprise Category).

4.Safety and health

Policies

Foster Electric has established a principle to prioritize health and safety, and endeavors to create a safe and healthy working environment. Based on this principle, we are advancing activities to prevent and address risks impacting our employees and stakeholders through deliberation, mainly by the Health and Safety Committee and the health and safety management organizations at individual sites.

Abstract from the Code of Conduct

  1. Understand laws and orders concerning work-related safety and health and comply with them. And minimize and prevent a recurrence of an accident in a reliable manner.
  2. Employee exposure to potential safety hazards is to be controlled through the proper design, engineering and administrative controls, preventative maintenance and safe work procedures.
  3. Procedures and systems are to be in place to prevent, manage, track and report occupational injury and illness.
  4. Employee exposure to chemical, biological and physical agents is to be identified, evaluated, and controlled.
  5. Employee exposure to the hazards of physically demanding tasks is to be identified, evaluated and controlled.
  6. Production and other machinery is to be evaluated for safety hazards.
  7. Employees are to be provided with ready access to clean toilet facilities, canteen with suitable drinking and eating environment.

Activity Promotion Structure

The health and safety activities are operated by the Health and Safety Committee at headquarters in cooperation with industrial doctors, under the supervision of its upper-level organization, the Risk and Crisis Management Committee. By sharing information among the health and safety management organizations at each site, the Group is working as one to create an appropriate working environment.

Main Activities

Every year, we implement health and safety education, which is the basis of occupational activities. Further we tackle “group-wide issues” based around the Risk and Crisis Management Committee at headquarters. As part of the activities based on the Health and Safety Management Regulations, the health and safety management organization, which consists of representative workers and management, discusses site specific issues, conducts legal inspections, and confirms the implementation of risk assessments at each site to prevent accidents and eliminate risks.
With regard to the group-wide issues, we take initiatives to resolve occupational health and safety issues for all employees by following “the Occupational Health and Safety Management Program Procedure Manual,” which is based on “the Foster Group Corporate Action Guidelines” and “the Foster Group Code of Conduct for Staff.” At headquarters, we worked to “drive the development of infrastructure and systems to reduce risks by assuming the occurrence of a disaster,” which is the policy of the Health and Safety Committee, as in the previous year. We addressed various risks and strived to achieve zero occupational injuries. As a result, none of the 17 occupational injuries that occurred within the Group as a whole were high-consequence work-related injuries.

Initiatives and achievements at headquarters

  • Enhancement of fire source management at business locations in external warehouses
  • Provision of e-learning program on maintaining good health with a healthy diet to employees who are interested with the goal of managing employees' health
  • Informing employees of the Ministry of Health, Labour and Welfare’s guidelines for improving the teleworking environments during remote work
  • Traffic safety exercises and remote traffic safety exercises for people who work from home with the participation of police officers from the local police department
  • Establishment of a chemical management promotion team in response to the revision of laws and activities to inform all headquarters employees of the revised laws

Promotion of chemical management

In Japan, in response to the revision of the Industrial Safety and Health Act, we have strengthened our confirmation of labeling and creation of safety data sheets (SDSs) under the Globally Harmonized System of Classification and Labelling of Chemicals (GHS) in the handling of chemical substances and operations including the use of safety equipment. Based on risk assessments at each site, we began to take countermeasures based on autonomous management.

Activities of the chemical management promotion team

  • ・Promotion and implementation of chemical substance risk assessments
  • ・Actions taken and promoted for the management of chemicals under the Industrial Safety and Health Act (including special rules)
  • ・Actions taken and promoted for the use of personal protective equipment.
  • ・Appropriate management of SDSs and implementation of countermeasures based on assessment results

We will maintain a safe, secure system globally by taking health management measures thoroughly.

Bicycle safety

In recognition of our employees’ safe use of bicycles and our traffic accident prevention activities, we were certified by the Japan Traffic Management Technology Association as a Model Company for National Bicycle Safety in February 2017, with our activities being seen as making us a role model. The certification was again renewed this year in recognition of our continuing activities. This year, the use of bicycle helmets began to be recommended, and we made it mandatory to wear a helmet when using a company-owned bicycle for work. We will continue striving to ensure employees’ safety.


Bicycle Safety Model Company certification

Initiatives at warehouses in Japan

We improve matters related to occupational health and safety, and fire /disaster prevention through internal and external audits. At Murayama Logistics Center, a facility inspection was conducted by the internal fire brigade, and we carried out improvement activities based on identified potential risks. We undertook disaster control measures by improving facility operation and equipment.

Initiatives at overseas sites

We seek to improve areas related to health and safety at overseas plants and other overseas sites, either on our own or through externally certified management systems. We minimize the occurrence of work-related injuries and diseases with safe, hygienic work environments, in an effort to ensure high quality products and services and uniformity of manufacturing, retain workers, and increase their motivation to work. We also share information with employees and provide them with ongoing training, so as to identify and solve health and safety problems in workplaces.
Regarding the international standard ISO 45001 for occupational health and safety, the Bac Ninh Factory (Vietnam) and the Panyu and Heyuan Factories (China) received ISO 45001 certification in 2019, while the Binh Duong Factory (Vietnam) became certified in 2022.
In addition, the ESTec Group, our subsidiary in South Korea, has also obtained this certification at its Binh Duong Factory (Vietnam), Phu Tho Factory (Vietnam), Jiaxing Factory (China), and the headquarters factory (South Korea).
Among the 15 manufacturing sites of the Foster Group, the above eight sites have obtained the ISO 45001 certification and have continued to renew the certification every year.
At sites that have yet to obtain the ISO 45001 certification for occupational health and safety, we have stipulated that specific actions shall be taken by following “6.1.4 Planning Action” shown in the standard. We aim for appropriate operation based on the structure of each site.