With Employees

Goals and Achievements of Major Initiatives

Objectives of initiatives Goals for fiscal year 2018 Achievements in fiscal year 2018 Evaluation Goals for fiscal year 2019
Foster and endorse the advancement of local staff overseas with the aim of advancing global management. • Formulate a human rights policy.
• Use human rights training to encourage awareness of the policy.
• Implement voluntary human rights inspections at Group companies in Japan and overseas.
• A human rights policy was formulated and announced.
• Human rights inquiries were conducted and steps were taken to promote awareness at DIC Group companies worldwide.
• Sun Chemical continued to participate in the Responsible Mica Initiative.
★★ • Reinforce awareness of the human rights policy.
• Use ESG human rights training to encourage awareness of the policy among executives and other pertinent individuals.
• Provide tailored guidance based on the results of voluntary human rights inspections.
Consider the creation of a global personnel system that includes evaluation with the goal of ensuring rational and efficient human resources management. • A new Human Resources Strategy Department was established.
• A trial of a new process for selecting the next generation of management was launched.
★★★ Announce and begin implementing WING, a new strategy designed to rally diverse human resources as the source of DIC’s competitiveness as a global organization.
• Continue offering the GCD Program.
• Continue providing practical training aimed at fostering global human resources.
• The Group continued to of fer the GCD program. • The Group continued to provide practical training aimed at fostering global human resources. ★★★

• Continue offering the GCD Program.
• Continue providing global human resources training aimed at fostering employees at multiple levels.
Encourage women in the workplace with the aim of securing a diverse labor force and supporting diverse working styles. Continue to advance efforts to, among others, change mindsets, create a framework and actively encourage the hiring of female job candidates. • A program to foster female leaders was implemented.
• A panel discussion was held with women in management positions at other companies as panelists
• Telecommuting arrangements were introduced in January 2018.
• DIC earned selection as a Nadeshiko Brand.
★★★ • Continue to implement the program to foster female leaders. • Use roundtable discussions to manage the progress of efforts to promote career opportunities for female employees. • Introduce leave for employees to accompany spouses overseas.
Promote the hiring of individuals with disabilities with the aim of securing a diverse labor force and supporting diverse working styles. Increase the number of employees with disabilities to 2.2% of DIC’s total labor force. As of December 31, 2018, individuals with disabilities accounted for 2.41% of DIC’s total labor force. ★★★ Work with the Japanese government’s Hello Work public employment security offices, as well as and special needs schools and other organizations to promote the hiring of individuals with disabilities, to maintain the employment rate for individuals with disabilities at 2.4% of DIC’s total labor force.
  • Evaluations are based on self-evaluations of current progress. Key: ★★★ = Excellent; ★★ = Satisfactory; ★ = Still needs work

Basic Approach to Human Resources Management

With the aim of being an organization that empowers all employees to reach their full potential, the DIC Group is committed to respecting human rights and eliminating all forms of discrimination and to creating a work environment that embraces diversity. The Group also strives to support a healthy work-life balance for each employee and create a work environment conducive to job satisfaction, as well as to foster local human resources in markets around the world, which it recognizes as essential to ensuring sustainable corporate growth under its current medium-term management plan.

A New Strategy for a Stronger Management Infrastructure

In line with The DIC WAY, which represents its fundamental management policy, the DIC Group has established a global human resources management framework under which Group companies in Japan, the PRC and the Asia-Pacific region are overseen by DIC, while those in North America, Europe, Central and South America, and Africa are overseen by Sun Chemical of the United States. The Company’s DIC111 medium-term management plan, which was introduced in February 2019, sets forth a strategy, dubbed WING, that is designed to rally the Company’s diverse human resources as the source of its competitiveness as a global organization. WING centers on four core themes, summarized as “work style reform,” “human resources infrastructure reform,” “next management selection” and “global talent development.”

Rally diverse human resources as the source of DIC’s competitiveness at a global company (WING)

Basic Personnel Statistics (DIC)

Respect for Human Rights

The DIC Group actively supports global codes governing human rights*1, in line with which it is currently formulating the DIC Group Human Rights Policy, and promotes related initiatives. The DIC Group Code of Business Conduct, which outlines standards that DIC Group employees are expected to observe, lays down provisions prohibiting human rights violations and requiring respect for diversity, two philosophies that are the foundation of the Group’s corporate activities. DIC Group employees are obliged to understand and provide written pledges to abide by the Code. Domestic and overseas Group companies implement voluntary human rights and labor practices inspections as part of ongoing efforts to prevent issues from arising, assess the results of these inspections and confirm the absence of violations.
In fiscal year 2010, DIC became a signatory to the United Nations Global Compact (UNGC), pledging its support for the UNGC’s 10 principles, which include tenets regarding human rights and labor. The Company continues to implement related initiatives in all areas of its corporate activities to reinforce respect for human rights in the human resources management practices of all Group companies and prevent the occurrence of violations.
In response to the Modern Slavery Act 2015*2, DIC is reinforcing training regarding human rights due diligence*3, cognizant of the issue of human trafficking and the risks it poses to companies with operations in the United Kingdom. The Company also promotes awareness among DIC Group company executives and enhances corporate headquarters’ inspection and monitoring structure as part of an ongoing effort to bolster Group management capabilities.

  • *1The International Bill of Human Rights, comprising the Universal Declaration of Human Rights and the International Covenants on Human Rights (the International Covenant on Economic, Social and Cultural Rights and the International Covenant on Civil and Political Rights); the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work; the United Nations’ Guiding Principles on Business and Human Rights; and the Ten Principles of the Global Compact (UNGC).
  • *2Under the Modern Slavery Act 2015, an Act of the Parliament of the United Kingdom, companies with operations in the United Kingdom must report on the existence/nonexistence of slavery, human trafficking or other critical violations of human rights in their supply chains, related risks and steps they are taking to address such practices. “Modern slavery” encompasses debt bondage, forced labor and servitude; human trafficking; and exploitation (sexual exploitation, forced organ donation).
  • *3Human rights due diligence is an ongoing risk management process that a company needs to follow in order to identify, prevent, mitigate and account for how it addresses its adverse human rights impacts.

Initiatives in Fiscal Year 2018

A total of 48 DIC Group companies in Japan and overseas implement voluntary human rights and labor practices inspections. In fiscal year 2018, DIC refined the scope of questionnaires distributed to companies for this purpose and began promoting efforts to increase the visibility of related issues at individual companies, providing direction and/or training at corporate headquarters where necessary. Having completed verification of the results of inspections at companies in Japan, in fiscal year 2019 DIC will gradually expand efforts to ascertain status, promote awareness and provide training at Group companies in key overseas markets.

The DIC Group Human Rights Policy

As a member of society that recognizes the importance of respect for human rights and respects the basic human rights of all stakeholders, including its customers, suppliers and employees, the DIC Group is currently formulating a human rights policy, a draft of which is provided below. Based on this policy, DIC will work to increase the human rights awareness of its executives and employees and to conduct its business activities in a manner that shows respect for human rights.

  1. Positioning
  2. This policy, which is in accordance with global human rights codes, articulates DIC’s fundamental stance on respect for human rights.

  3. Scope of application
  4. This policy applies to all executives and employees of the DIC Group. The Company shall also encourage its business partners and suppliers to adhere to this policy and cooperate with them to advance respect for human rights.

  5. Responsibility to respect human rights
  6. The Company shall strive to fulfill its responsibility to respect human rights by ensuring that its business activities do not result in violations of the human rights of stakeholders, as well as by preventing human rights abuses in the course of its business. In the event that its business partners or suppliers cause adverse human rights impacts through their businesses, products and services, the Company—while not directly complicit—shall use its influence to encourage the responsible parties to cease the practices responsible for such impacts.

  7. Human rights due diligence
  8. To fulfill its responsibility in regard to respect for human rights, the Company has created a human rights due diligence system, which it shall employ on an ongoing basis to identify and address human rights risks.

  9. Corrective/remedial actions
  10. Should the Company cause adverse human rights impacts or should it become evident that it has been complicit in causing such impacts, the Company shall take appropriate corrective/remedial actions in response.

  11. Compliance with applicable laws
  12. The Company shall comply with applicable laws in the countries and territories in which it operates. The Company shall also respect international human rights principles and work actively to promote these principles.

  13. Disclosure and education/training
  14. The Company shall periodically report publicly on the progress of initiatives implemented in line with this policy. To ensure the effectiveness of this policy, the Company shall also provide appropriate training to its executives and employees.

  15. Dialogue and discussion
  16. The Company shall engage with stakeholders regarding initiatives implemented in line with this policy by creating opportunities for dialogue and promoting discussion in good faith.

  17. Identifying principal human rights challenges
  18. The Company has separately identified principal human rights challenges. In line with this policy, the Company shall use due diligence as appropriate. Recognizing this as an ongoing process, the Company shall also continue to revise and amend these challenges to reflect social change, business trends and other factors.

DIC Corporation

Principal Human Rights Challenges Facing the DIC Group

Based on key global standards regarding human rights, the DIC Group has identified the following as the principal human rights challenges it faces and promotes appropriate due diligence in accordance with its draft human rights policy. The Group will review these challenges on a regular basis, taking into consideration factors such as social change and business trends.

  1. Eliminate discrimination
  2. The DIC Group prohibits all types of discrimination, harassment and other practices that undermine the dignity of any individual.

  3. Prevent child labor and forced labor
  4. The DIC Group prohibits the use of child labor, forced labor, slave labor and labor resulting from any form of human trafficking.

  5. Respect basic labor rights
  6. The DIC Group respects basic labor rights, including freedom of association and employees’ rights to organize and to engage in collective bargaining.

  7. Address the issue of conflict minerals
  8. The DIC Group prohibits the use of conflict minerals. Should any raw materials purchased from third-party suppliers be found to contain conflict minerals, the Group will respond by, among others, immediately terminating the procurement thereof.

The DIC Group’s Human Rights Due Diligence System

The DIC Group has created a human rights due diligence system, which it employs on an ongoing basis.

The DIC Group’s Human Rights Due Diligence System

Due Diligence Initiatives to Address Principal Human Rights Challenges

  1. Promotion of supply chain due diligence by the Purchasing Department
  2. To ensure that its extended supply chain functions in a socially responsible manner, the Company established the DIC Group Universal Purchasing Policy in 2008, based on which it also formulated purchasing management regulations, and the DIC Group CSR Procurement Guidelines, which clarify issues it expects suppliers to address, in 2009. Using the policy and guidelines, the Company promotes CSR procurement by ensuring that all suppliers implement improvements and initiatives necessary to ensure sustainable procurement, as well as advances respect for human rights and takes comprehensive steps to address human rights risks such as conflict minerals, across its supply chain.

  3. Responses to a questionnaire issued by coatings industry organizations
  4. Mica has a broad range of industrial applications, including coatings, cosmetics, electronics materials, and cutting fluids and is mined around the world. The use of child labor in the mining of mica in India, a leading producer, has been identified as a critical issue for users.
    DIC Group company Sun Chemical, which oversees the Group’s printing inks, resins and pigments for cosmetics operations in the Americas and Europe, faces inquiries from coatings industry organizations regarding the source of the mica used in its products. Sun Chemical has conducted inquiries at its suppliers and ascertained that it has no dealings with suppliers that use child labor. The company has also communicated its human rights policy—which states that should any supplier be discovered to use child labor, the company will immediately terminate its relationship with that supplier—to the organization.
    Sun Chemical is also a founding member of the Responsible Mica Initiative, a unique global collaboration established in February 2017 to eradicate child labor in the mica mines of India. Through participation in this initiative, materials producers and cosmetics companies around the world are working to contribute to the realization of a sound, viable mica mining industry.

  5. Establishment of whistle-blowing hotlines and corrective measures by the compliance team
  6. The Company’s compliance team has created a channel for Group employees to report to whistle-blowing hotlines. In fiscal year 2018, the Company received 19 human rights-related reports through this system. However, internal investigations revealed no serious violations. Appropriate corrective measures were implemented in the receipt of reports.

  7. Contact procedures and responses to comments and complaints
  8. The Company has established procedures for suppliers, customers, local communities and other stakeholders to report issues by telephone or through its corporate website and strives to respond swiftly when comments or complaints are received. No complaints pertaining to human rights issues were received in fiscal year 2018.

Building Trust with the DIC Employees’ Union

DIC’s management and representatives of its employees’ union meet regularly with the goal of ensuring healthy industrial relations based on mutual trust. In addition, through labor-management councils and casual management conferences, DIC shares management information and its vision for the future with union representatives and encourages the frank exchange of opinions. A total of 67.2% of parent company employees belong to the DIC Employees’ Union. (100% of non-managerial employees are union members.)

Promoting Diversity: Work Style Reform

Strength through

The DIC Group actively pursues diversity by employing a broad spectrum of individuals without regard to such considerations as gender, nationality, physical limitation or age. The Group works to foster a corporate culture that draws on its understanding and respect for diversity to produce creative ideas and to incorporate the concept of diversity into management, thereby creating workplaces that enhance job satisfaction for employees. The Group’s president and CEO has said, “It is important to recognize that marshaling the diversity of the individuals that make up our labor force will enable us to respond to social imperatives or event to change DIC itself.” To this end, DIC has identified introducing alternative working arrangements that leverage digital tools, including telecommuting and flextime; shifting the focus of evaluations from quantity to quality; and providing support for employees who have childcare or nursing care responsibilities or suffer illness as the key themes of the human rights strategy set forth in its DIC111 medium-term management plan. DIC is also promoting ESG management to strengthen its management infrastructure, with initiatives in Japan emphasizing increasing the percentage of the Company’s management positions occupied by female employees, the percentage of its overall labor force accounted for by foreign nationals, and the number of female employees and foreign nationals on its management team.

Targets:

1.Hiring Diverse Human Resources

Number of Foreign Nationals Currently Employed by DIC
Nationalities 1 Hiring Diverse Human Resources of Foreign Employees

With the objective of securing talented individuals with advanced specialized capabilities, global perspectives and language capabilities, DIC actively promotes the hiring of international students completing undergraduate or graduate studies at Japanese universities; Japanese and foreign nationals completing undergraduate or graduate studies at overseas universities; and experienced mid-career candidates with extensive experience and expertise. At present, approximately 50 foreign nationals are employed in various capacities at DIC.

Number of Foreign Nationals Currently Employed by DIC

VOICE

DIC’s flexible work environment enables employees to accommodate work plans.

As a new graduate, I wanted to find a job with a company that would help me grow as a citizen of the world. As an organization with bases around the world, DIC was the ideal choice. The group I was assigned to is tasked with developing PPS compounds, which are key engineering plastics used widely in automotive components. Because DIC produces PPS compounds at five sites worldwide, including in Japan, we interact frequently with colleagues and customers from overseas. Several members of our team have experience working in other countries, which makes for a lot of unique personalities. DIC has introduced a variety of working arrangements, including flextime and working at home. This creates a work environment that enables employees to, for example, adjust work hours to accommodate work plans, telecommute with earphones when they need to concentrate, making it much more flexible than most Japanese companies. It is encouraging to see the idea of not being constrained by preconceived notions, which is something those of us in technical positions often hear, is gradually finding its way into efforts to reform work styles at my own workplace.

Polymer Processing Technical Group 2 Sia-Er Tani

Polymer Processing Technical Group 2
Sia-Er Tan

2.Expanding Career Opportunities for Women

In line with its commitment to promoting diversity, DIC implements a variety of initiatives to expand career opportunities for female employees. Having established a full-scale program to support employees in balancing the demands of a career and childcare in 2007, since fiscal year 2016 the Company has pushed ahead with measures to transform employee mindsets and its corporate culture, as well as to provide training designed to encourage the drive and determination of female employees and broaden the range of jobs open to women.

Creating a Framework for Initiatives

In fiscal year 2017, DIC established the position of diversity officer in each of its business units to create a framework for initiatives in each business unit that reflect the actual situation on the ground. The individual in charge of diversity for the Group and the business unit diversity officers meet periodically to exchange information, among others, with the aim of raising the standard of initiatives implemented Companywide.

Transforming Employee Mindsets and the DIC Corporate Culture

Women in DIC Forum (2016)

In October 2016, DIC held the Women in DIC Forum, which addressed the issue of career opportunities for female employees and welcomed female executives from multiple Group companies, at its corporate headquarters in Tokyo. Approximately 800 employees—split evenly between female employees and male management-level employees—participated in the conference on-site and via live relay. In the first session, four female executives from overseas Group companies gave presentations, while in the second session three female employees in senior positions in Japan joined the four speakers for a panel discussion on pursuing a rewarding career as a way to enrich one’s life. The discussion was broadcast to 14 DIC Group sites across Japan.
As part of its effort to change the mindsets of management-level employees, in May 2017 DIC held a conference for approximately 300 line supervisors on the meaning of diversity. The following month, the Company held a round-table discussion that included an outside director who is board chair of an NPO and is well versed in diversity management. All executive officers participated in the discussion, which included debate on the direction and substance of future efforts to promote career opportunities for female employees.
In May 2018, DIC staged a diversity-related event for executives and managers overseeing female employees at corporate headquarters in Tokyo. The event, which was attended by approximately 300 individuals from 16 sites across Japan, was divided into two parts. The first was a lecture titled “Diversity Is a Strategy,” which was given by Yosuke Yagi, CEO of People First, Ltd., whose career includes stints as a human resources manager for General Electric Japan Ltd. and executive officer and executive vice president of LIXIL Group Corporation. Mr. Yagi’s lecture touched on a variety of points, including tips for bringing out the best from people and organizations that he actually put into practice at LIXIL and about unconscious biases that impede the careers of female employees. The second part of the event was a discussion between Mr. Yagi and DIC president and CEO Kaoru Ino titled “Diversity at DIC: The Next Challenge,” which was moderated by Yukio Ishizuka of Nikkei Inc. In addition to an exchange of views on the results of DIC’s diversity awareness survey, the participants looked at the direction of efforts to promote diversity at DIC by examining employees’ understanding and gaps in awareness between female and male employees, and introducing case studies from other companies.

Cultivating Leadership Skills

In a move designed to help enhance the management skills of female employees, in fiscal year 2016 DIC became a member of the Japan Women’s Innovative Network (J-Win), registering one or two employees as individual members each year since. An NPO that assists efforts to promote and firmly establish diversity management in the workplace, J-Win engages in a broad range of activities, including advising and serving as a consultant for companies seeking to advance career opportunities for female employees, organizing seminars and lectures, and conducting surveys. DIC employees participate in a variety of J-Win programs with the goal varying from improving project management capabilities and self-improvement to conducting research using diversity case studies and expanding networking efforts.
In fiscal year 2018, DIC established the Woman Leader Development Program (W-LPD). A total of 25 employees participated during the first session of this program, which lasts six months and features project-style training, while in fiscal year 2019 21 employees are taking part.
Thanks to these and other efforts to improve work environments, in fiscal year 2018 the voluntary separation rate for female employees of the parent company remained in the area of 2%, while the average years of service for female employees once again exceeded that for male employees. DIC continues taking decisive steps to expand its recruitment of new female graduates from technical schools and bachelor’s and master’s degree programs, conduct awareness seminars for employees qualified for executive and managerial positions, and expand its telecommuting system. Through such efforts, the Company aims to boost the percentage of management positions occupied by female employees to 8.0% by January 1, 2021. DIC has also formulated an action plan based on Japan’s Act on Promotion of Women’s Participation and Advancement in the Workplace.

TOPIC Presentation on Results of Projects Implemented as Part of Program to Foster Female Leaders Held

In July 2018, a presentation was held at DIC’s corporate headquarters in Tokyo on the results of projects implemented as part of the first session of DIC’s Woman Leader Development Program (W-LDP), which began in January. During this session, which lasted six months, a total of 25 top-ranking female employees selected from various departments participated in project-style training. Through project management that closely resembled actual situations, participants worked to acquire the ability to independently identify issues, formulate solutions, secure the cooperation of others and work tenaciously to produce concrete results.
For the presentation, teams of program participants addressed key issues facing future female executives in regards to challenges such as reforming work styles, transforming DIC’s corporate culture and nurturing young employees, and proposed solutions to the General Affairs and HR Department. One participant commented that the project format necessitated close communication, which had had enabled her to create a robust network of contacts across multiple Group sites.

Initiatives Aimed at Expanding Career Opportunities for Women

Policy for Advancing the Careers of
Female Employees

TOPIC DIC Earns First Selection as Nadeshiko Brand for Fiscal Year 2018

In recognition of its superb achievements in expanding career opportunities for women, DIC was selected as a Nadeshiko Brand for fiscal 2018, the first time it has honored under this program, which is sponsored by Japan’s Ministry of the Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE). The Nadeshiko Brand initiative aims to introduce TSElisted companies judged to be outstanding in terms of efforts to empower women in the workplace as attractive stocks for investors who emphasize medium- to long-term improvements in corporate value with the aim of accelerating such efforts. The initiative assesses approximately 3,600 companies across all TSE sections based on what they do to promote diversityconscious management and their disclosure of related information.
With the aim of being an organization that enables a broad range of individuals to reach their full potential, DIC has positioned expanding opportunities for its female employees as the first step in its drive to promote diversity. Since fiscal year 2015, the Company has actively promoted a variety of initiatives in line with four key themes: Stimulate an appropriate employee mindset and corporate culture, support career-building, promote work style reforms and communicate publicly. In fiscal year 2018 implemented a variety of important initiatives, including career-building support seminars attended by female employees and their superiors, a joint leadership development program with companies in other sectors, management panel discussions on the theme of diversity, and lectures for management-level employees. Reasons cited for DIC’s selection as a Nadeshiko Brand included these initiatives, as well as its efforts to create work environments that are conducive to job satisfaction, including the introduction of flextime and telecommuting systems and instituting mandatory “no overtime days.”

  • Management panel discussion on diversityManagement panel discussion on diversity

  • Career-building support seminar for female employees and their superiorsCareer-building support seminar for female employees and their superiors

3.Advancing the Employment of Individuals with Disabilities

Percentage of DIC’s Labor Force Accounted for by Individuals with Disabilities

DIC is committed to creating inclusive work environments that help individuals with disabilities enjoy active and fulfilling careers. One initiative, which began in fiscal year 2015, is an internship program, organized in collaboration with a facility providing support for individuals with intellectual disabilities, designed to transition into full-time employment. In fiscal year 2018, three program participants were offered full-time clerical positions.
As of December 31, 2018, individuals with disabilities accounted for 2.41% of DIC’s total labor force, exceeding Japan’s legally mandated quota of 2.2%. Going forward, DIC will continue working with the Japanese government’s Hello Work public employment security offices, as well as and special needs schools and other organizations to promote the hiring of individuals with disabilities, and will take further steps to enhance work environments and increase workplace accessibility.

4.Reemployment after Retirement and Support for Retirement Planning

DIC has deployed a system that facilitates the reemployment until age 65 of individuals reaching retirement age (60) and wishing to remain with the organization. With available options including full-time work, short-time work and work sharing, this system enables reemployed individuals to maximize their experience and make full use of their accumulated technological capabilities and specialized expertise, thereby contributing to sustainable growth for the DIC Group and the training of subsequent generations.
DIC also offers classes for employees within a year of retirement that helps them prepare for life after their careers. These classes provide assistance with retirement planning and education regarding the national pension system, as well as offer retirement lifestyle simulations.

Number of Reemployed Individuals

  Fiscal year 2015 Fiscal year 2016 Fiscal year 2017 Fiscal year 2018
Number of retirees (A) 126 108 69 89
Individuals seeking reemployment 104 92 55 74
Number of individuals reemployed (B) 97 91 55 70
Reemployment rate (B) / (A) 77.0% 84.3% 79.7% 78.7%

Initiatives that Support a Healthy Work-Life Balance

DIC views a healthy work-life balance as essential to both self-realization and sustainable corporate growth. Accordingly, from the standpoint of corporate health management*, the Company continues to expand systems intended to facilitate such a balance.
In response to falling birth rates and lengthening life spans, the Japanese government has launched a drive to promote work style reforms, in line with its belief that positive workplaces lead to higher productivity, with the aim of helping individuals balance the demands of a career and childcare or nursing care and improving productivity. Since well before this, DIC has promoted initiatives aimed at enabling all employees to realize both a satisfying work life and a fulfilling life outside work.

  • *An approach to employee health management that emphasizes a corporate management perspective and the implementation of strategic measures.

1.Enhancing Programs that Help Employees Balance the Demands of Work and Home

Kurumin Mark Certification
Kurumin Mark Certification
In 2008, DIC was accorded the Kurumin Mark, which recognizes companies that actively promote initiatives that assist with child rearing, by Japan’s Ministry of Health, Labour and Welfare.

In 1986, DIC blazed a trail for chemicals manufacturers in Japan by implementing a childcare leave program. Since establishing a program to support employees in balancing the demands of a career and childcare in 2007, the Company has continued promoting measures that make it easier for employees to make use thereof. In fiscal year 2008, DIC acquired the Kurumin Mark, which recognizes companies that promote initiatives designed to assist employees in raising children. The Company also deployed a system that gives regular employees the option to accept or refuse transfers requiring relocation and, since 2012, a system that allows management-level employees to limit the locations to which they will accept transfers, making it easier for individuals who are unable to accept transfers that involve relocation because of childbirth, childcare, nursing care or other responsibilities.

Promoting Measures to Retain Employees with Nursing Care Responsibilities

Promoting Measures to Retain Employees with Nursing Care Responsibiliti

In Japan, one of the social ramifications of falling birth rates and lengthening life spans is an increase in the number of people requiring nursing care, as a result of which more people find themselves having to leave their jobs to take care of family members. Steps taken by the government to help address these issues include revising the Child Care and Family Care Law in 2016 to make it easier for individuals to take leave or time off and increasing benefits for temporary absences from work. To encourage use and promote knowledge of its related leave programs, in June 2017 DIC began distributing the Childcare and Nursing Care Handbook. DIC has also revised the rules of these programs, including making it possible to break up nursing care leave, as well as to shorten workdays, thereby making it easier for employees to use them.

Major Expansion of the Flextime System

To facilitate flexible working styles, in fiscal year 2017 DIC resolved to significantly expand its flextime system and in April 2018 made the system applicable to all areas of operations other than production floors. The system makes it possible for employees to determine the time at which they end their working day to the extent that it does not hinder business efficiency, as well as to simultaneously make use of telecommuting, with the goal of promoting the independent execution of duties and enhancing self-management capabilities.

Promoting Telecommuting

In fiscal year 2016, DIC began exploring the potential of telecommuting, which enables employees to work at home or another remote location using ICT, eliminating the time and location constraints of traditional work arrangements. The following year, employees and management conducted extensive talks to iron out details. After analyzing and evaluating the results of a trial involving 57 employees, in January 2018 the Company launched the DIC Telecommuting System, which is available to all employees at all sites in Japan.
By creating systems that make it possible for each employee to choose a working style that suits the type of work he or she does, as well as his or her personal needs, DIC will continue working to help employees achieve a healthy work-life balance. The Company will also continue to promote the independent execution of duties with the aim of reinforcing employees’ self-management capabilities, thereby accelerating efforts to galvanize employees and encouraging them to give full play to their creativity.

VOICE

Thanks to the new telecommuting system, both my professional and private life are more fulfilling.

The way salespeople work has changed from back in the day and responsibilities other than visiting customers continue to increase. In addition to dealing with internal paperwork, I have to deal with environmental and legal/regulatory inquiries, so one or two days each week are taken up with deskwork. More than a few of these tasks are conducive to telecommuting. Like most other salespeople, I also work when I have a free moment between business trips and when I’m out of the office. Telecommuting allows me focus before I leave for a business trip or when I get home, so I’m able to be much more efficient. I look forward making further use of the telecommuting system to achieve a work-life balance that suits me and helps ensure a more fulfilling professional and private life.

Manager, Tokyo EP Sales Group, Composite Material Products Division Takuro Mikami

Manager, Tokyo EP Sales Group, Composite Material Products Division
Takuro Mikami

DIC Rates 3.5 Stars in the Second Nikkei Smart Work Survey

Strength through

In November 2018, DIC earned a 3.5-star rating in the Second Nikkei Smart Work Survey, conducted in connection with an initiative by Nikkei, Inc., designed to support companies working to enhance productivity through work style reforms and contribute to socioeconomic sustainability and global competitiveness. The survey assigns starts (5, 4.5, 4, 3.5 or 3) to top achievers.
Nikkei uses the Nikkei Smart Work Survey to rate the success of participating companies to translate work style reforms into improved performance in the categories of human resources, innovation and market development. DIC’s rating of 3.5 stars, an improvement from 3 stars in fiscal year 2017, was underpinned by high marks given actions taken to promote the implementation and use of technology, notably the adoption of tools to encourage global information sharing and the use of artificial intelligence (AI) in product development, and to help realize diverse and flexible work styles, such as the introduction of a telecommuting system and the implementation of measures to advance the careers of female employees.

Work and Childcare Balance Support Programs

Childcare Leave Program The maximum length of leave is until the child reaches the age of 2 years and 6 months, which is one year longer than the legally mandated leave period.
Leave to Assist with Parenting Program Male employees can take five days’ paid leave during the eight weeks following their child’s birth to assist with parenting.
Childcare While Working Program Employees can shorten their workday by up to three hours until the end of a child’s third year of elementary school. Employees can also stagger their working hours to accommodate childcare schedules.
Economic support system This system enables employees on unpaid childcare leave to borrow a portion of their bonuses in advance to pay for, among others, fertility treatment or infant care facility fees.
Return to previous (or equivalent) position Employees returning from childcare leave must be allowed to return to their previous position or to a position equivalent thereto.
Information sharing to promote program participation DIC’s views on support for work and childcare balance, as well as a guide to its various available systems and how to make use of them, are posted on the Company’s website and intranet.
Nursing care leave system Employees can take such leave for up to one year, exceeding the statutory maximum of 93 days. As of January 2018, employees may also break up leave without restriction.
Nursing Care While Working Program Employees not wishing to take leave while providing nursing care can shorten their workday by up to two hours or opt for a system in which they shorten their days by two hours before or after prescribed working hours. As of January 2018, employees may also request to be excused from doing overtime without restriction.
Leave to accompany spouse overseas Employees can take leave in the form of a temporary overseas assignment to accompany a spouse who is scheduled to be abroad for more than one year. The period of the leave must be more than one year, with a maximum length of three years. Employees may make use of this system once during their careers.
Relocation limitation system Management-level employees may limit the locations to which they will accept transfers that involve relocating because of childbirth, childcare, nursing care or other responsibilities.

Use of the Childcare Leave and Leave to Assist with Parenting Programs

Average Years of Employment
Average Years of Employment

Thanks to the introduction of various programs to help employees in balancing the demands of work and home and the creation of an environment that encourages employees to take advantage of such thereof, the percentage of DIC employees who return to work after using DIC’s Childcare Leave Program is currently 100%. The number of individuals using the Leave to Assist with Parenting Program, available to the dependents of employees who have given birth, has risen. Underscored by efforts to enhance these systems, the average years of employment for female employees has increased, exceeding the average for male employees

Number of Employees Using the Childcare Leave and Leave to Assist with Parenting Programs

  Fiscal year 2014 Fiscal year 2015 Fiscal year 2016 Fiscal year 2017 Fiscal year 2018
Number of employees using
the Childcare Leave Program
28 29 35 35 21
Number of employees using
the Leave to Assist with Parenting Program
63 64 62 77 81

Policy for Advancing the Careers of
Female Employees

2.Reducing Extreme Overwork and Encouraging Employees to Take Annual Paid Leave

DIC has deployed an electronic system to manage on-site hours, working hours and approved overtime hours. As a measure to prevent extreme overtime, if an employee exceeds the agreed-upon overtime limit (80 hours/month), his or her supervisor and the senior executive in charge are automatically notified so that steps can be taken to ameliorate the situation. The supervisor is required to submit a report outlining the employee’s work and the reasons for the excessive hours while also presenting specific measures to ameliorate the situation, which is also shared with the DIC Employees’ Union, a process designed to curb extreme overwork.
In addition, the Company has instituted a mandatory Groupwide “no overtime day” every Wednesday and on payday, which in Japan is once a month at month-end, in a bid to encourage efficient work practices and bolster productivity. (Sites can change these days as appropriate.) DIC also encourages employees to take annual paid leave, notably by recommending leave timing at each site and having employees plan dates for such leave.

Average Monthly Overtime Hours Worked and Annual Paid Leave Taken

  Fiscal year 2014 Fiscal year 2015 Fiscal year 2016 Fiscal year 2017 Fiscal year 2018
Average monthly overtime hours worked per employee 12.2hours
12.1hours
12.3hours
12.2hours
12.0hours
Average annual paid leave granted 19.1days 18.8days 19.1days 18.8days 18.6days
Average annual paid leave used 11.0days 11.2days 12.0days 12.0days 12.5days
Usage rate for annual paid leave 57.6% 59.6% 62.8% 63.8% 67.2%

Human Resources Infrastructure Reform

With the rapid expansion of its global operations, DIC recognizes that securing and fostering human resources around the world and creating an environment that encourages cross-border career advancement and mobility is essential to increasing corporate value. To these ends, since fiscal year 2015 the Company has sought to develop harmonized promotion, personnel evaluation and remuneration systems, the cornerstone of the global human resources management framework for DIC Group companies under its jurisdiction. In January 2018, DIC and DIC Graphics unified qualification standards for its 1,300 management-level (i.e., manager and above) employees, replacing traditional ability-based standards with role-based standards. As a consequence, consistent duty- and role-based standards are now used for the majority of such employees in the Americas, Europe, the Asia-Pacific region, the PRC and Japan. The Group has also integrated its evaluation systems for Group company presidents and other executives in Japan and overseas with the goal of encouraging management approaches that are optimal for the Group as a whole from both a medium- and a long-term perspective. The Group also integrated its global personnel policies to ensure that remuneration is in keeping with local market levels and individual job responsibilities.
In addition to these efforts, under DIC111 DIC will take advance efforts to consolidate employee qualification systems worldwide, unify qualification standards and assessment formats for management-level employees, and develop an IT system to facilitate the construction of a global human resources platform. Through such efforts, the Company will realize consistent Groupwide global human resources and personnel management systems.

Securing and Fostering Human Resources

1.Ensuring Fair and Consistent Treatment

To ensure that the efforts and achievements of all employees are reflected appropriately in their treatment, DIC has consolidated its numerous employee qualification systems irrespective of job classification and educational credentials. The selection of employees to recommend for qualification is done through screening based on objective standards, thereby guaranteeing equal opportunities for promotion to all motivated, capable employees.
Remuneration and personnel evaluation systems designed to enhance job satisfaction ensure that individual employees’ abilities and achievements are assessed appropriately and reflected in a timely manner. Of note, the Company has introduced MBO, a goal-setting management tool that promotes both corporate growth and employee development, into its personnel evaluation system. Results of individual evaluations are fed back in full to employees, including reasoning behind determinations—a transparent process that ensures employees are largely satisfied with evaluation results.

Ensuring Fair and Consistent Treatment

2.Establishment of the Next Management Selection Process

In line with a strategy outlined in DIC111 to establish a process for selecting the next management team, in fiscal year 2018 the Company embarked on a trial aimed at realizing the mechanism for such a system. The newly created Human Resources Strategy Department will assess the potential of human resources above a certain rank from diverse perspectives, including leadership skills and management capabilities (360-degree evaluation) and prepare a list of candidates for executive positions. These individuals will be assigned to specific positions and their performance monitored and evaluated over a fixed period and then discussed by the Talent Management Committee (provisional name) to narrow down the list. The trial in fiscal year 2018 was limited to Japan, but in fiscal year 2019 DIC will conduct a similar trial for human resources overseas and will conduct verification and make improvements as necessary with the aim of realizing a rational and efficient global process by fiscal year 2020.

3.Fostering Human Resources to Reinforce Front-Line Capabilities and Accelerate Change

Having recognized fortifying its Group organizational capabilities and enhancing the skills of its people as important challenges, DIC has declared the mediumterm focus of its human resources development program as being to nurture human resources capable of reinforcing front-line capabilities and accelerating change. This program, which is divided into six categories, is based on curricula that emphasize a systematic approach to helping each employee acquire critical skills. Since fiscal year 2016, training has emphasized the concepts of “global” and “diversity,” with areas emphasized including training to improve English-language skills and Japanese-language training for non-native speakers.

Medium-Term Focus of DIC’s Human Resources Development Program

DIC Training Programs

Training to Enhance Proposal Development Capabilities

Since fiscal year 2013, DIC has offered a series of courses that focus on cultivating prowess in the area of proposal development, in line with its goal of reinforcing front-line capabilities. In the advanced course, which primarily targets senior manager-level employees, groups of five or six individuals from sales and technical departments form cross-department project teams, which select practical customer-centered themes, and work to formulate solutions to pertinent hypothetical issues and further hone their ability to prepare and present proposals. The course, which lasts nine months, encompasses approaches to development of innovative proposal themes and angles, problem solving and persuasive presentations, among others, with professional business consultants offering advice and guidance at each stage.
Course work is in addition to participants’ regular responsibilities, so participants have a lot on their plates, but they find that they are able to apply newly acquired skills almost immediately, greatly improving front-line capabilities. Participants have also used their selected themes to make proposals to actual customers, many of which have reached the verification stage.

Global Talent Development

DIC has positioned the fostering of global human resources as a key theme of DIC111. Accordingly, the Company is taking steps to, among others, define the level of and set and requirements for global human resources, as well as to systematize training (English-language ability, competency and work experience) programs.

Offering the Overseas Trainee and GCD Programs

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The goal of DIC’s Overseas Trainee Program is to foster global human resources by dispatching selected employees from Japan to work at a DIC Group company in another country for a specified period, thereby helping them develop a more international mindset, improve their skills and build networks with their colleagues overseas. As of the fiscal year 2017 year-end, 19 individuals were participating in this program.
Under the GCD Program, employees from overseas Group companies are sent to work at DIC Group companies in Japan. Positioned as part of the Group’s effort to foster global human resources and promote diversity, this program gives future business leaders a chance to learn new skills and Japanese business techniques and to network with Group colleagues, as well as to deepen their understanding of Japan’s culture and commercial practices. This program also brings domestic employees in contact with other cultures and provides an opportunity for them to polish their English-language skills and acquire a global perspective. In fiscal year 2018, Group companies in six countries sent GCD Program participants to spend between three months and one year at sites in Japan.
Through the Overseas Trainee and GCD programs, DIC seeks to advance the globalization of the overall DIC Group, as well as to encourage smooth cooperation between Group companies in Japan and their counterparts overseas.

Encouraging Understanding of Islamic Culture

Fostering an understanding religion-based differences in everyday lifestyles is an important aspect of DIC’s efforts to promote diversity. In February 2017, prior to the arrival of GCD Program participants from Indonesia, managers and assistant managers at the Kashima Plant, in Ibaraki Prefecture, attended a lecture designed to give them a basic knowledge of Islamic culture, during which they learned about practices that have developed around the religion of Islam, which is the religion of 80% of Indonesians, including praying five times a day, eating halal food (food that conforms with Islamic dietary laws), and fasting during the month of Ramadan. The lecture helped the plant make necessary preparations for its visitors, including setting aside a space for prayer during the day and giving consideration to working hours, food choices and other factors after they arrived. Despite a certain amount of initial bewilderment on the part of both plant employees and program participants, earnest efforts to communicate helped enhance understanding of each other’s cultures and customs. In March 2018, the two Indonesian employees completed their assignment and returned home. Information on the Indonesian employees’ experiences at the Kashima Plant were shared with other Group production facilities in Japan, helping ensure a welcoming environment for two GCD Program participants from Malaysia who arrived early in fiscal year 2018.

Next Global Human Resources Development

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Since fiscal year 2017, DIC has offered the Next Global Human Resources Development program for mid-tier employees designed to enhance global business skills. Each year, 20 individuals in their 30s and 40s are selected to take part in the program, which includes language classes taught by native English speakers that focus on improving presentation, negotiation, debate and other skills. The Company also provides individual training designed to improve English-language capabilities, including one-on-one Skype-based training focused on improving conversational skills and TED talk* listening and discussion classes. At the conclusion of the 11-month program, in April, participants divide into six teams, each of which is tasked with discussing their vision for DIC 10 years in the future and giving a presentation on the topic in English to the president and executive officers, as well as to their own boss and colleagues. All individuals who complete the program receive a certificate. DIC looks forward to continuing to offer this program, which it views as crucial to fostering the Company’s next generation of executives.

  • *TTED (Technology, Entertainment, Design) talks are conferences conducted by U.S. media NPO TED, LLC, that are posted online for free distribution. The talks address a wide range of topics and are given by front-line leaders in various fields invited to serve as speakers.

Caring for Mental Health

DIC takes steps to create environments in which employees feel physically and mentally supported and works to ensure that its labor management practices comply with relevant laws. The Company places a high priority on caring for psychological and emotional well-being and has established a comprehensive mental health program, highlights of which include engaging an in-house occupational psychologist, promoting initiatives aimed at warding off mental health problems and extending support to ensure a smooth return to work for employees taking leave. In particular, access to counseling provided by an occupational psychologist has had a considerably positive impact in terms of ensuring employees get treatment and are able to return to work as quickly as possible.
DIC has also offered voluntary stress checks since fiscal year 2013 and promotes active, systematic efforts with the aim of preventing mental health disorders in accordance with related legislation passed in Japan in fiscal year 2016. In fiscal year 2017, DIC conducted seminars led by an in-house physician at sites that have scored above a certain level in voluntary stress checks and provided counseling aimed at helping employees improve communications with supervisors, colleagues and family members. The Company will promote the ongoing, systematic implementation of these initiatives.

Mental Health Initiatives

Initiatives to Support Employee Health

A new healthy cafeteria menu selection
A new healthy cafeteria menu selection

DIC has always analyzed the results of employees’ annual physicals and provided assistance to employees for whom lifestyle improvements have been recommended by providing introductions to hospitals and clinics. The Company has also sought to contribute to good health for employees by encouraging the use Spirulina—a noted superfood* that is manufactured by a DIC Group company—as an ingredient in cooking.
In fiscal year 2016, DIC’s Healthcare Office and the company responsible for the operation of the corporate headquarters’ employee cafeteria collaborated to develop a new healthy cafeteria menu. The new menu, dubbed DIC Irodori Care+ (“DIC Colorful Care+”) was launched in February 2017, beginning with the cafeteria at the Company’s corporate headquarters in Tokyo, with distinctive signage used to promote recognition and a clear explanation provided of the benefits of menu selections, including reduced calories and low sodium content, to encourage use.
DIC will continue implementing measures designed to help ensure the physical and mental health of its employees as part of its commitment to creating a work environment in which all employees can fully exercise their abilities.

  • *The term “superfood” is used to describe standard foods with an excellent balance of nutrients that provide health benefits and foods containing specific nutrients and/or ingredients good for human health.

DIC Earns “White 500” Certification in the Health & Productivity Outstanding Entities Recognition Program

DIC Earns “

DIC earned certification in the large enterprise category (dubbed the “White 500”) of the 2019 Health & Productivity Outstanding Entities Recognition Program, which is organized by Japan’s Ministry of Economy, Trade and Industry (METI) and Nippon Kenko Kaigi*1. This is the second consecutive year the Company has been certified under this program.
By shining a spotlight on outstanding enterprises working to advance health and productivity management, this program seeks to create an environment that ensures such enterprises gain enhanced public recognition—i.e., from employees, jobseekers, related companies and financial institutions—as organizations that approach employee health and productivity from a management perspective and promote strategic initiatives.
In addition to looking at whether enterprises have stipulated health management in their corporate mission and disclose pertinent information, the 2018 Health & Productivity Outstanding Entities Recognition Program assessed performance based on three criteria, namely, grasp of employee health-related issues and consideration of actions, establishment of a foundation for the practical implementation of health and productivity management measures and work engagement*2, and promotion of efforts that help ensure the physical and mental health of employees. DIC received scores significantly above the industry average for all three of these criteria, finishing in the top 20% with a five-star rating.
Going forward, DIC will continue to implement measures designed to help ensure the physical and mental health of its employees as part of its commitment to creating a work environment in which all employees can fully exercise their abilities.

  • *1Nippon Kenko Kaigi (“Japan Health Council”) is an organization that liaises with private companies, with the full backup of the government, to put effective measures in place to prolong the healthy life expectancy of citizens and to ensure sound medical services in Japan.
  • *2A concept used to measure employees’ mental health, work engagement is described as a positive, fulfilling work-related state of mind that is characterized by vigor, dedication and absorption. “Vigor” is taking pride and experiencing a sense of satisfaction in one’s work, “dedication” is feeling strongly involved in and focused on one’s work and “absorption” is being actively engrossed in one’s work.

DIC Group Site Employee Cafeteria at Earns Smart Meal Certification

DIC Earns “

The employee cafeterias at DIC’s corporate headquarters, Osaka Branch Office and Sakai Plant earned certification in the “Meal Program” category of the fiscal year 2018 Smart Meal Program, earning the highest possible rating of 3 stars. The Smart Meal Program, which is administered by a consortium of 11 academic associations, including the Japanese Society of Nutrition and Dietetics and the Japanese Society of Nutrition and Food Service Management, was established to recognize restaurants, corporate facilities and other establishments that promote the continuous provision of nutritionally balanced menu options — i.e., “smart meals”— in healthy eating environments.
Under the Smart Meal Program, restaurants, corporate sites and other establishments that satisfy essential requirements, which include a menu that meets Smart Meal standards and the creation of an appropriate management system and easy-to-understand efforts to communicate benefits, and 10 or more optional conditions related to the promotion of healthy diets and eating environments, earn certification with a 3-star rating.
Certification under the Smart Meal Program is divided into two classes: “Wholesome” (450–650 kcal) and “Hearty” (650–850 kcal). DIC’s corporate headquarters was certified in both classifications, while the Osaka Branch Office and the Sakai Plant were certified in the “Wholesome” class. All three also work with the companies responsible for the operation of their employee cafeterias to improve cafeteria quality. At corporate headquarters, these efforts focus on developing menus that take into account the results of annual employee health checkups. At the Osaka Branch Office, the focus is on promoting health consciousness by providing clear, age-specific information on energy consumption, while the Sakai Plant the emphasis is on creating menus that reflect the results of employee polls and make use of regional ingredients.

Ties with Employees

Executive Vice President Masayuki Saito gives a results presentation to employees (February 2018)
Executive Vice President Masayuki Saito gives a results presentation to employees (February 2018)

110th anniversary issue of <i>DIC Plaza</i>
110th anniversary issue of DIC Plaza

Facility tour for families of employees (Kashima Plant)
Facility tour for families of employees (Kashima Plant)

The DIC Group promotes a variety of initiatives to facilitate active communication with its employees around the world. In April 2017, the Group conducted an employee awareness survey in Japan, the PRC and the Asia–Pacific region. In February 2018, the Group’s in-house newsletter, DIC Plaza, which is published in Japanese and English, produced a special edition to celebrate the Group’s 110th anniversary. As well as introducing Group operations and colleagues from around the world, DIC Plaza—which is produced with the goal of enhancing inhouse communication—features comments from a wide range of stakeholders.
In March 2018, DIC Plaza won an overall award for seasonal publications in the Fiscal Year 2017 Keidanren In-House Newsletter Awards. DIC Plaza received above-average scores for all judging criteria. In particular, high marks were given for planning and content, which aligns with management policies, the introduction of activities involving a variety of employees in Japan and overseas to highlight themes such as diversity and sustainability, and the showcasing of Kaizen and other steadfast production initiatives, as well as for attractive page layout.
The Group’s intranet is another way for DIC to share information with employees worldwide and further understanding of its activities. In fiscal year 2017, a total of 72 items were posted on the intranet.
Senior management also promotes opportunities for direct communication with employees. These include quarterly results presentations for employees given by the president and CEO, executive vice president and executive officers in charge of individual businesses, the goal of which is to enhance understanding of the Group’s management strategies and the Group’s current operating and financial status.
In March 2017, the Kashima Plant organized a facility tour for employees’ families, a component of the plant’s 45th anniversary celebrations. Planned as part of DIC’s ongoing branding program, the event was held as a first practical step toward achieving the plant’s goal, which is to create a production site worthy of showcasing to the world, by enabling employees to show their families the plant where they work. A total of 90 family members participated in the tour, which included lunch at the employee cafeteria and a visit to the production floor.

Caravan

The Sustainability Department and the Corporate Communications Department collaborated to stage a workshop, dubbed Caravan, designed to encourage awareness of the DIC Group’s sustainability and branding initiatives at the Tokyo Plant. The workshop, which included a variety of meaningful educational activities, featured an active exchange of views, with participants expressing an understanding of the importance of sustainability initiatives and a desire for an increased focus on internal communications within the DIC Group. Afterward, all participants were asked to participate in an in-house intranet system project, facilitating ongoing communication. In fiscal year 2020 we will expand implementation of this initiative to include site in the PRC and the Asia–Pacific region.

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