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The NEC Group values the process of improving CSR management based on feedback from engagement with stakeholders. In accordance with the ISO 26000 standard issued in November 2010, NEC has implemented a dialogue and review process involving the newly formed "CSR Review Forum-Japan", with participation by CSR-related divisions and others of the Company.
The results of this process are outlined in the following Stakeholder Review. The NEC Group will continue to promote CSR management based on the ISO 26000 standard going forward.
The CSR Review Forum-Japan (CRF) is a private, non-profit organization established through an alliance of civil society organizations (NGOs, consumer organizations, etc.) and individuals affiliated with those groups working to solve social issues and help bring about a sustainable society. CRF provides the CSR Review Program for independent reviews of corporate activities based on ISO 26000, the international standard for social responsibility.
The NEC Group and the CSR Review Forum-Japan initiated an engagement and spent approximately six months in dialogue based on the ISO 26000 standard. This report summarizes the conclusions of the review.*1 Generally speaking, the NEC Group has a well-established CSR management structure and steadily promotes work on issues that it recognizes as priorities. The recommendations that follow focus on key issues.
The NEC Group has set a target of having overseas sales account for half of total sales in fiscal 2018 and is working to rapidly globalize its organization to this end. The NEC Group provides more than products and services for communications and social infrastructure. In recent years it has also been transforming itself from a company that provides information and communications equipment to a company that handles information itself. The NEC Group is deepening its bonds with the public and society in general through the medium of information.
Through this review we sensed that the most important CSR issue facing the NEC Group is integrating social responsibilities throughout an organization. The following lays out key points in tackling this challenge.
The first is that the NEC Group must constantly think about the sphere of its influence and responsibility from a business-to-business-to-consumer standpoint and grasp both the positive and negative impact of its information and activities on the public and society in general. The second is that the NEC Group must think about CSR in its main businesses and concretely promote it from the proactive perspective of using information to contribute to the development of a sustainable society and bolster its own competitive advantage, rather than simply from the perspective of protecting itself by preventing information leaks and the like. The third is that the NEC Group must first establish "due diligence" mechanisms focused on preventively and proactively ensuring that human rights harm, environmental destruction and other negative impacts do not occur. It will also be necessary to consider measures for avoiding complicity in order to prevent involvement in human rights harm perpetrated by third parties and prevent damage from being done without its knowledge. We expect the NEC Group to identify especially important issues and phase in measures that are integrated into the existing business processes.
We found that rules for accountability, transparency and other social responsibilities are generally being followed in good faith. Going forward, the NEC Group must fully integrate and institute the basic principle of respecting, carefully considering and addressing for stakeholder interests in organizational governance processes.
The NEC Group has well-developed systems in place to promote social responsibilities and has the commitment of senior management. Going forward it will be important for NEC's CSR to make progress not only in administrative divisions but also in the company's business divisions as well. To this end, guided by The NEC Way, the NEC Group must further incorporate a social responsibility perspective into the strategies and targets of its main businesses and enhance communication across divisions rooted in CSR and led by the CSR division.
For this review, we conducted separate reviews of four areas related to organizational governance: compliance, risk management, information security, and business continuity. Overall, initiatives have progressed. With business continuity, we expect the NEC Group to review its response to the Great East Japan Earthquake and comprehensively report on it in the report in fiscal 2013.
Regarding human rights, we found that awareness of the issue is limited to the prohibition of discrimination. Facilitating understanding of the global human rights concept will be a task for the NEC Group going forward. Moreover, as required by the revised 2011 OECD Guidelines for Multinational Enterprises, the Group must develop "due diligence" mechanisms focused on preventive and proactive avoidance of complicity in human rights harm perpetrated by third parties and extend the mechanisms to domestic and overseas NEC Group companies and its suppliers.
We conducted a review of general labour practices with particular focus on diversity, human resources development and occupational health and safety (OH&S). On the issue of diversity, respect for diversity is extremely important for further developing business activities globally and succeeding in multiple regions. In our view, diversity strategies and policies are also necessary from the standpoint of directly linking adaptability and innovation to diverse markets. Regarding OH&S, basic systems have been established at the NEC Group in Japan. The challenge going forward will be to enhance OH&S management in line with the global development of operations. To start, the current OH&S status of overseas sites should be ascertained. We also expect the "decent work" concept*2 to be promoted within the organization.
The NEC Group is engaged in environmental management at factories and other sites, as well as exceptional initiatives related to reducing the environmental impact of society through its main businesses, with a view of achieving the goals laid out in the NEC Group Environmental Management Action Plan 2017/2030 established in 2010. Going forward, in cloud services, smart grids, lithium ion batteries and other areas, we expect the NEC Group to provide products and services that go beyond conventional thinking to realize "Ecology through IT" by implementing a comprehensive strategy of differentiation―encompassing value creation from a general public and societal standpoint and stakeholder communication strategy―while facilitating coordination between the Smart Energy and Green Business Operations Unit established last year, the Corporate Communications Division and other departments. Regarding environmental protection in the supply chain, an area of rapidly mounting interest in recent years, we expect the NEC Group to grasp the current situation for each category of material and steadily implement initiatives while coordinating with the industry as a whole.
On the issue of preventing corruption, we verified that the NEC Group plans to further strengthen global compliance systems in response to the enactment of the Bribery Act 2010 in the U.K. On supply chain management, the Group continues to ascertain the current situation by establishing guidelines and surveying primary suppliers. The sphere of the NEC Group's influence extends to primary suppliers with which there is a contractual relationship, but the NEC Group recognizes the risk of problems occurring further upstream, and responded by indicating it would work with primary suppliers to address problems as necessary. Going forward, we expect the NEC Group to conduct on-site inspections of suppliers and partner with the rest of the industry to promote CSR-oriented supply chain management by suppliers.
Engaging in consumer issues necessitates the perspective of providing products and services that help consumers and society beyond the immediate business customer. The NEC Group emphasizes a business-to-business-to-consumer perspective, and its Core Values include "Think from a user's point of view." Going forward, the challenge will be how to increase opportunities for communication with general users and how to include business partners in initiatives. In addition, ISO 26000 identifies as consumer issues sustainable consumption, consumer education and other important areas where the NEC Group has the ability to contribute. The NEC Group can cite positive examples like the development of ATMs at convenience stores, and we expect it to tackle industry-leading initiatives so that its varied resources are employed for the sake of consumers.
The next challenge for the NEC Group, a leader in social contribution activities, is incorporating a community development perspective into existing activities. Specifically, through its Make-a-Difference Drive, it is hoped that the NEC Group will help to reduce poverty in developing countries and elsewhere, and to solve environmental problems. We expect the NEC Group to add the perspective of "societal impact" to its assessment of social contribution programs, more strongly link human resources development with social contribution programs, and engage in full-scale development projects for impoverished people in developing countries.
Note: Let it be noted here that upon completion of this CSR review, the NEC Group made a commitment to formulate CSR policies referring to the recommendations provided by this review.
1. This review is a summary of key points under the ISO 26000 standard based on separate reports created for each area subject to review.
2. Decent work is the availability of employment in conditions of freedom, equity, security and human dignity.
2011.07.10 CSR Review Forum-Japan
Chief Reviewer
Tomohiko YAMAGUCHI
The CSR Institute, Inc
Reviewer
Saburo KATO
Konoe FUJIMURA
Japan Association of Environment and Society for the 21st Century
Reviewer
Sachiko KISHIMOTO
Satoshi YURA
Norio SUGITA
Hideyuki TAKANO
Center for Public Resources Development
Reviewer
Kaori KURODA
CSO Network Japan
Reviewer
Taro TAMURA
Institute for Human Diversity Japan
Reviewer
Yukiko FURUYA
Nippon Association of Consumer Specialists
