Annual Report 2007

Index >Corporate Social Responsibility
Corporate Social Responsibility
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Overview
CSR Framework
The DENSO Group Declaration of Corporate Behavior
CSR Promotion System
CSR Activities
Corporate Citizenship
Respecting Associates

Overview

DENSO defines its corporate social responsibility (CSR) as contributing to the sustained development of society to support the continued growth of the Group. Accordingly, in conjunction with our economic contribution to society through our business results, we are also working to enhance our contribution in the environmental and social spheres. With this in mind, we have established a dedicated CSR Promotion Center to strengthen Group-wide CSR activities.

Our CSR activities have earned high marks outside the Group. For example, DENSO has regularly been included in such socially responsible investment indices as the Dow Jones Sustainability Indexes (DJSI) and the Ethibel Sustainability Index (ESI).

CSR Framework

DENSO has created a shared CSR framework, shown in the diagram below, for the entire Group to systemize an emphasis on CSR across all its activities.

CSR Framework

The DENSO Group Declaration of Corporate Behavior

Formulated in April 2006, this declaration sits at the heart of our CSR activities. It clarifies the kind of corporate activities we need to implement to contribute to the sustained development of society in the context of our relationships with stakeholders.

CSR Promotion System

In June 2006, DENSO established a CSR Promotion Committee, chaired by the president and comprising all the Company’s directors, to make decisions related to CSR activities. CSR Leaders have also been appointed at each Group company to play a central role in implementing CSR initiatives.

CSR Activities

The DENSO Group is leveraging its unique strengths in three strategic key areas of its CSR activities: environmental protection, corporate citizenship and respecting associates. Below, we explain our activities in these areas in more detail.

Environmental Protection

Aiming for growth balanced with consideration for the environment, DENSO is working to help solve a wide range of environmental issues. Specifically, in line with our basic environmental policy and action plan in DENSO EcoVision 2015, formulated in fiscal 2006, that guide our approach to issues such as global warming, recycling, and substances with environmental impact, we are focusing on four key areas: enhancing the development of environmentally friendly products; ascertaining then reducing the volume of CO2 emitted by all our corporate activities; steadily reducing our global environmental impact; and reinforcing Group-wide environmental management. Below, we explain the first two areas in more detail.

(i) Enhancing the development of environmentally friendly products

As a supplier of automotive components and systems, the DENSO Group believes that developing technologies and products that reduce the environmental impact of automobiles is vital. One example of these efforts in fiscal 2007 was the development of a motor-driven electric variable cam timing control system for the Lexus LS460, a world first. This and many other components are part of DENSO’s efforts to protect the global environment through technologies that improve fuel efficiency, reduce the volume of harmful substances in exhaust emissions and realize other advances.

(ii)  Ascertaining then reducing the volume of CO2 emitted by all our corporate activities

Aiming to help prevent global warming, DENSO is working to reduce emissions of CO2 in every area of its operations. These activities go beyond product and technology development to encompass manufacturing, logistics and administration divisions, as well as the actions of individual employees.

In manufacturing divisions, efforts to identify and standardize the groundbreaking energy-saving technologies and expertise we have deployed in Japan and transfer them to other DENSO companies is realizing benefits across the entire Group. As a result, in fiscal 2007, we reduced CO2 emissions per unit of production by 23% (volume of emissions in manufacturing divisions per unit of net sales: unit of production) compared with the fiscal 2001 benchmark, exceeding our EcoVision 2015 target of a 20% reduction by fiscal 2011. The technologies and expertise that are enabling us to achieve this improvement have also won praise from outside the Group, illustrated by Clean Development Mechanism certification for energy-saving technologies used at a plant in Malaysia.

In logistics divisions, we are adopting more environmentally sound transportation methods. For example, on our longest domestic logistics route from Aichi Prefecture to North Kyushu, we are shifting some container transport from road to rail.

To further increase the effectiveness of these initiatives, we are also strengthening the DENSO Group’s supply chain. Specific steps included tightening our Green Procurement Guidelines for suppliers and working with them in manufacturing and logistics to reduce CO2 emissions.

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A container train used for transport between DENSO sites in Aichi Prefecture and North Kyushu

Corporate Citizenship

DENSO is aiming to win even greater trust from international society through efforts to coexist with local communities worldwide. To realize this objective, in fiscal 2007, we formulated the DENSO Group Basic Policy for Corporate Citizenship Activities. This policy defines two key areas where DENSO can use its unique strengths to best effect —develop people (create programs for fostering youth and supporting socially disadvantaged people), and promote harmony with the environment. The policy also promotes Group-wide efforts to create a corporate culture that encourages the participation of all employees in corporate citizenship activities.

In the first area, develop people, our efforts in Japan are focused on DENSO Taiyo Co., Ltd., a subsidiary established in 1984 to help people with physical disabilities become more independent by providing employment opportunities. Overseas, in 1999, we established the Wheelchairs and Friendship Center of Asia (WAFCA), a non-profit organization that manufactures and distributes wheelchairs in Thailand, among other activities. WAFCA is extending its reach into other parts of Asia. For example, in fiscal 2008, WAFCA began activities to support the manufacture and wider use of wheelchairs in China as part of efforts to help people with physical disabilities across Asia gain more independence.

In the second key area of our corporate citizenship activities, promote harmony with the environment, we introduced a unique scheme called DENSO EcoPoint designed to encourage our employees to take part in voluntary eco-activities that help protect the environments of local communities. Employees are awarded points for participating in local clean-up activities or using more eco-friendly commuting methods. Saved points can then be exchanged for eco-products or contributions to treeplanting and other schemes that benefit the environment. By providing this kind of support, we are aiming to make environmental protection more fun, illustrated by the 3,200 people who had signed up for the scheme by the end of fiscal 2007.

One example of our efforts to create a corporate culture that encourages more employees to participate in corporate citizenship activities is the DENSO Group Community Service Day, where DENSO Group employees volunteer to work together in teams on activities in individual communities. In fiscal 2007, around 16,800 DENSO employees in Japan and overseas participated in these activities, building shared bonds and winning greater trust from local communities.

Respecting Associates

We provide in-depth human resources development from a medium- to long-term perspective so that each associate can maximize their capabilities.

DENSO considers the basis of development to be continuous on-the-job training. In addition, DENSO is promoting its off-the-job training designed to enhance the knowledge and skills of associates in a systematic manner. These and other approaches are part of support given to associates to help them demonstrate their abilities and attain even higher goals.

In particular, we are focusing on the development of a Global & Common Training system designed to foster common work practices and values in all DENSO Group associates. To achieve this, we introduced the “DENSO Approach to Working” and “Manufacturing DNA Training” in fiscal 2007. We plan to continue actively providing support to associates to help them grow and achieve personal fulfillment.

Photo
DENSO Taiyo

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