With Employees

Goals and Achievements of Major Initiatives

Objectives of initiatives Goals for fiscal year 2017 Achievements in fiscal year 2017 Evaluation Goals for fiscal year 2018
Foster and endorse the advancement of local staff overseas with the aim of advancing global management. • Conduct seminars for Group executives at DIC’s corporate headquarters based on the results of voluntary human rights and labor practices inspections. Formulate a human rights policy.
• Conduct voluntary human rights inspections of Group companies in Japan and overseas.
• An external speaker was engaged to conduct a seminar on work–life balance for Group executives.
• A draft version of the Group’s human rights policy remained under consideration.
• Individual human rights cases involving Group companies in Japan and overseas were investigated.
• Sun Chemical participated in the Responsible Mica Initiative.
★★ • 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.
Introduce a unified policy regarding remuneration for management-level employees at DIC and DIC Graphics. On January 1, 2018, the Group introduced unified role-based standards to determine remuneration for 1,300 management-level (i.e., manager and above) employees. As a consequence, unified standards are now used for the majority of such employees in Europe and the Americas, the Asia–Pacific region, the PRC and Japan. ★★★ Consider the creation of a global personnel system that includes evaluation with the goal of ensuring rational and efficient human resources management.
Continue to offer training programs for employees and candidates for executive positions at DIC Group companies in Japan and overseas and to implement measures aimed at fostering global human resources. • A total of five employees of overseas Group companies were sent to work at Group companies in Japan under the GCD Program.
• Practical training aimed at fostering global human resources was introduced.
★★★

• Continue offering the GCD Program.
• Continue providing practical training aimed at fostering global human resources.
Encourage women in the workplace with the aim of securing a diverse labor force and supporting diverse working styles. Enhance measures for advancing the careers of female employees and increase the percentage of new female graduates recruited to 30%-plus. • A diversity seminar was held for directors and supervisors.
• Executive-led lunch seminars were held for female employees.
• A panel discussion was held with women in management positions at other companies as panelists.
• Telecommuting arrangements were introduced in January 2018.
★★★ Continue to advance efforts to, among others, change mindsets, create a framework and actively encourage the hiring of female job candidates.
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, 2017, individuals with disabilities accounted for 1.94% of DIC’s total labor force Increase the number of employees with disabilities to 2.2% 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.

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.

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.

DIC's human rights due diligence mechanism

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. DIC completed a questionnaire designed to confirm its awareness of the issue of child labor in the mining of mica in India and the presence or absence of mica procured from mines using child labor, as well as to ensure that it has corrective measures in place. The Company’s responses confirmed that the DIC Group procures no mica from mines using child labor and communicated its approach to human rights, including its vow to immediately terminate procurement in the event an issue should arise.

  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 2017, the Company received 24 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 2017.

TOPICS Sun Chemical Participates in the Responsible Mica Initiative

Mica
Mica

The Responsible Mica Initiative is a unique collaboration established in February 2017 to eradicate child labor in the mining of mica in India. DIC Group company Sun Chemical, which oversees the Group’s printing inks, resins and pigments for cosmetics operations in Europe and the Americas, is a founding member and one of many materials and cosmetics manufacturers taking part in this initiative.
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 children in the mica mines of India, a leading producer, has been identified as an issue that needs to be addressed. Through participation in the Responsible Mica Initiative, Sun Chemical will work to contribute through its operations to the realization of a sound, viable mica mining industry in India.

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 67.8% of parent company employees belong to the DIC Employees’ Union. (100% of non-managerial employees are union members.)

Global Human Resources Management

In line with The DIC WAY, which represents its fundamental management philosophy, and its DIC108 medium-term management plan, 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.
With the rapid expansion of its global operations, DIC recognizes that fostering human resources 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 its global human resources management framework for DIC Group companies under its jurisdiction.
Having unified personnel evaluation systems for executives in Japan, the PRC and the Asia–Pacific region, as well as created a management resources database, DIC is promoting systematic efforts to cultivate executives, including introducing specialized management training and systematic training programs. Through such efforts, the Company is striving to create a structure that allows it to cultivate executives that best suit its needs without regard for nationality.
In fiscal year 2017, DIC and DIC Graphics unified the qualification standards for 1,300 management-level (i.e., manager and above) employees. These changes came into effect in January 2018. As a consequence, unified duty- and role-based standards are now used for the majority of such employees in Europe and the Americas, the Asia–Pacific region, the PRC and Japan.
DIC is striving to realize a framework that creates a broader playing field, allowing employees with diverse values and skills to exercise their capabilities and using the same yardstick to evaluate their achievements. By so doing, the Company aims to create work environments that enhance job satisfaction and contribute to the expansion of DIC Group businesses.

Basic Personnel Statistics (DIC)

Integrating DIC Group Executive Evaluation Systems

The DIC Group has integrated its evaluation systems for Group company presidents and other executives in Japan and overseas with the goal of encouraging these individuals not only to pursue near-term results for their business units but also to choose management approaches that are optimal for the Group as a whole from both a medium- and 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.

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.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.

3.Fostering Global Human Resources

Offering the Overseas Trainee and GCD Programs

flr_pic

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 Offering the Overseas Trainee and GCD Programs 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 2017, Group companies in four countries sent one or two 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.

Initiating Practical Training for Global Human Resources

In fiscal year 2017, the Company initiated a training program for mid-tier employees designed to enhance global business skills, selecting 24 individuals in their 30s and 40s to take part. Participants attended classes conducted by native English speakers that focused 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 dictation classes.

  • *TED (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.

TOPICS Lecture Provided to Promote Understanding of Islamic Culture

Prior to the arrival of GCD Program participants from Indonesia, in February 2017 managers and assistant managers at the Kashima Plant, in Ibaraki Prefecture, attended a lecture designed to give them a basic knowledge of Islamic culture. Lecture participants learned about practices that have developed around the religion of Islam, which is practiced by 80% of Indonesians, including the obligatory duty to pray five times a day, halal food, and fasting during the holy month of Ramadan. The lecture helped the plant make necessary preparations, including setting aside a space for daily prayer, and to give consideration to working hours, food choices and other factors after the two individuals 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 others’ cultures and customs. In March 2018, the Indonesian employees completed their approximately one-year assignment and returned home. Information on the Indonesian program participants’ experiences at the Kashima Plant was shared with Group production facilities across Japan, helping ensure a welcoming environment for participants from Malaysia who arrived earlier this year.

VOICE

Taking part in this program expanded my horizons and reinforced m VOICE y professional drive.

As a participant in the Overseas Trainee Program, I spent fiscal year 2017 at DIC (Guangzhou). While I had been to the PRC numerous times on business, taking up a post there gave me a better understanding of how Chinese people think, as well as an appreciation of historical and cultural context, which has enabled me to communicate on a deeper level in business situations.
One thing I did while I was in Guangzhou was to plan a variety of cross-department recreational activities involving both local staff and staff from Japan. This activity helped me build strong professional and personal relationships with my colleagues, as a result of which I really enjoyed working together. On my days off, I also participated in get-togethers organized to help Japanese expats in Guangzhou get to know each other. There are a lot of us in the area under similar circumstances and I found the opportunity to socialize with compatriots in various businesses, industries and positions—people I would likely never have met if we were all in Japan—extremely valuable, and it encouraged me to reflect again on myself and on the Company I represent.
I really believe in the value of the Overseas Trainee Program as an initiative that expands one’s horizons. I hope that many employees are able to take advantage of this challenging and rewarding opportunity in the years ahead.

High Performance Chemicals Sales Department 1, Polymers Product Division Keisuke Saji

High Performance Chemicals Sales Department 1, Polymers Product Division
Keisuke Saji

VOICE

Diversity: What I learned in India

As a participant in the Overseas Trainee Program, I spent a year working at DIC India Ltd. At first I was taken aback by the many differences between India and Japan, including the relentless 40ºC-plus temperatures every day and the crazy traffic conditions, with six cars abreast across three lanes! Perhaps the biggest hurdles I faced on the work front were how fast Indian people speak English and the basically top-down approach. It was also difficult to get local employees—who have different assumptions when it comes to the work environment—to understand the thinking behind a Japanese-style human resources system. No matter how many times I explained the system, my colleagues would dismiss it as "not up to global standards." Roadblocks such as this were understandably frustrating. I eventually realized that the only way to promote understanding of each other was through discussion, and so I started working to improve my ability to function in English, build trust and learn to argue logically. I also tried to become more tenacious, recognizing this as crucial to earning assent because Indian people love to debate! I still have a ways to go, but after a year here I feel that I have improved in all of these areas. My experience here has also taught me that respecting diversity means not judging business practices and customs as "good" or "bad," but rather having the ability to accept differences and fill in any gaps. It is also the ability to talk to people and bring them around to your point of view on issues you simply cannot concede. I also learned anew that the old adage "no man is an island" really is true. Given the top-down approach in India, the help of your superior is essential to getting things done. Today, my colleagues and I are working as a team with the goal of identifying efficient ways to work.
I really believe in the value of DIC’s Overseas Trainee Program as an initiative that will expand the horizons of young employees and contribute to the further globalization of the DIC Group. Looking ahead, I hope that many employees are able to take advantage of this challenging opportunity.

In charge of Global HR Planning, General Affairs and HR Department   Yuto Fujisawa

In charge of Global HR Planning,
General Affairs and HR Department
Yuto Fujisawa

VOICE

There is more to English than speaking, listening comprehension and reading!

My job involves a fair amount of business travel overseas, so I took the Target Global Program, the goal of which is to enhance English-language communications skills. I think that people are inclined to think that English speaking, listening comprehension and reading abilities are all you need to do business overseas. This program, which focused on assertiveness, negotiating techniques and how to conduct meetings to motivate people to generate ideas and reach conclusions, taught me what is really important. Training sessions were conducted entirely in English, but the relevance of what I learned is certainly not limited to the English-speaking world. I am confidentthat these skills will stand me in good stead and I look forward to applying them in the field

Functional Coatings Sales Department, Liquid Compounds Product Division Masayuki Aota

Functional Coatings Sales Department,
Liquid Compounds Product Division
Masayuki Aota

VOICE

Being an overseas trainee gave me a chance to refect on myself.

As a participant in the Overseas Trainee Program, in 2015 I was sent to work at DIC (Malaysia) Sdn. Bhd. While I found the language barrier and the cultural and religious differences challenging, I really enjoyed building personal relationships and working together with my new colleagues. Being in Malaysia and having the opportunity to be involved in global operations both changed my worldview and gave me a better overview of the DIC Group. It is a bit embarrassing to say so, but I think the experience helped me to mature as a person. I have since applied for an overseas posting and am working to improve my English.

Sales Department 3, DIC Graphics Corporation Takuya Morishita

Sales Department 3,
DIC Graphics Corporation
Takuya Morishita

Promoting Diversity

Strength through

The DIC Group actively pursues diversity by employing a broad spectrum of individuals without regard to considerations such 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. DIC’s new president and CEO, Kaoru Ino, who took office in January 2018, 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 even to change DIC itself.” The Group will continue working to draw out the distinctive capabilities of its employees by creating work environments that empower a richly diverse global team of true individuals to fully exercise their abilities.

1.Hiring Diverse Human Resources

Number of Foreign Nationals Currently Employed by DIC
Nationalities 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 40 foreign nationals are employed in various capacities at DIC.

Number of Foreign Nationals Currently Employed by DIC

VOICE

Thanks to the support of my supervisors and colleagues, I learned to really love my work.

I met a number of DIC employees at an academic conference when I was in graduate school and was really impressed by their positive attitude and broad expertise, so when I started looking for a job after graduation DIC was my first choice. My first assignment was in a department involved in developing LC products, which is completely different from my area of specialization in university and something I really did not know much about. Thanks to the support of my supervisors and colleagues, I was able to overcome any difficulties I faced and play a key role in developing products and learned to really love my work. To me, DIC’s true appeal is its willingness to entrust important tasks to young employees and the fact that I have so many colleagues I can talk to about anything, whether work-related or personal. In April of this year, I was transferred to a department involved in gravure inks development, so I am once again working hard to learn new things with the aim of quickly becoming a useful part of my new team.

Dispersion Technical Group 1, Tokyo Plant Keumhee Jang

Dispersion Technical Group 1,
Tokyo Plant
Keumhee Jang

VOICE

When I began hunting for a job as I was getting ready to graduate, DIC held a recruitment event at my university. I was really impressed by the pleasant atmosphere and by the impression they gave of being emphatically open to hiring foreign nationals. So even though I am not Japanese, there was no uncomfortable pressure on me because of that when I entered the company. My job is in the area of PPS product development and the provision of technical services to customers. My responsibilities currently involve performing comparisons with materials produced by competitors and identifying the causes of quality problems. When I first joined the company, I could read and comprehend the content of various forms and documentation I dealt with, but my spoken Japanese was not so great, so many minute nuances went over my head and I found verbal communication a challenge. My on-the-job training supervisor was so kind and always responded patiently no matter how many questions I asked! Everyone in my department is friendly, too, so I really enjoy working here. I look forward to increasing not only my language skills but also my product knowledge and to playing a useful role in PPS product development.

Polymer Processing Technical Group 2, Polymer Processing Technical Division, Chiba Plant  Jia Ying

Polymer Processing Technical Group 2,
Polymer Processing Technical Division, Chiba Plant
Jia Ying

VOICE

I want to use my ability to understand local thinking to serve as a bridge between Japan and overseas markets.

When I joined DIC I had just graduated university in the PRC, spoke no Japanese and didn’t really know anything about Japanese companies. I was nervous and uncertain in the beginning, but the workplace atmosphere was great and my superiors and colleagues were kind and patient in teaching me everything I needed to know, so I really enjoyed my job. I am always impressed by my Japanese colleagues Eindustrious nature and meticulous attention to detail in all aspects of their work, as well as by the corporate culture of Japanese companies, which emphasizes the diligent observation of rules and the creation and provision of safe, high-quality products. In the future, I want to use my ability to understand local thinking to serve as a bridge between Japan and overseas markets with the aim of reinforcing relations and contributing to the success of our LCs business in the PRC and Taiwan.

Fine Synthesis Technical Group 6, Saitama Plant Wei Wu

Fine Synthesis Technical Group 6,
Saitama Plant
Wei Wu

2.Expanding Career Opportunities for Wom

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
Women in DIC Forum

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.

Enhancing Management 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 two employees as individual members. 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 selfimprovement to conducting research using diversity case studies and expanding networking efforts. Thanks to these and other efforts to improve work environments, in fiscal year 2017 the voluntary separation rate for female employees of the parent company remained in the area of 1%, 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.

VOICE

What I learned through participation in a J-Win program designed to advance career opportunities for women.

I participated in a 23-person working group organized on the theme of collaboration among companies with the goal of group members fortifying knowledge and experience through a variety of activities, including document studies, visits to various companies and the examination of case studies. To me, the most exhausting part was the discussing of matters until every member was satisfied. As individuals with nothing in common other than the fact that we are female and businesspeople, I think we all found team building and the alignment of goals difficult. The opportunity to share information with people from different companies and systems was stimulating and provided an opportunity to reflect on one’s own company. Participation in this working group also enabled me to build a network of contacts that I will always value. Going forward, the challenge will be to transform this important experience and the connections I made into something that effectively benefits DIC.

Publicity Manager, PR Group, Corporate Communications Department Yukie Yano

Publicity Manager, PR Group, Corporate Communications Department
Yukie Yano

Initiatives Aimed at Expanding Career Opportunities for Women

Policy for Advancing the Careers of
Female Employees

3.Advancing the Employment of Individuals with Disabilities

Advancing the Employment of 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 2017, three program participants were offered full-time clerical positions.
As of December 31, 2017, individuals with disabilities accounted for 1.94% of DIC’s total labor force, falling slightly short of Japan’s legally mandated quota of 2.0%. Going forward, DIC will continue striving to enhance work environments and increase workplace accessibility with the aim of lifting this figure to 2.2% by fiscal year 2018.

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 fulltime 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
Number of retirees (A) 126 108 69
Individuals seeking reemployment 104 92 55
Number of individuals reemployed (B) 97 91 55
Reemployment rate (B) / (A) 77.0% 84.3% 79.7%

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.

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.

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.

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 Epaid 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.
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 Progr

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
Number of employees using
the Childcare Leave Program
28 29 35 35
Number of employees using
the Leave to Assist with Parenting Program
63 64 62 77

2.Reducing Extreme Overwork and Encouraging Employees 2 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
Average monthly overtime hours worked per employee 12.2hours
12.1hours
12.3hours
12.2hours
Average annual paid leave granted 19.1days 18.8days 19.1days 18.8days
Average annual paid leave used 11.0days 11.2days 12.0days 12.0days
Usage rate for annual paid leave 57.6% 59.6% 62.8% 63.8%
VOICE

Balancing a career and childcare is a challenge, but I feel happy and fulfilled.

When I first joined DIC as a salesperson, I was a bit taken aback by the attention given to the fact that I am a woman, but it was never uncomfortable in any way. The biggest test came after I became pregnant, had my baby and then returned to work after taking maternity leave and childcare leave. First, there were all the unexpected and bewildering changes that come with pregnancy. Then I was up to my ears looking after a new baby, a situation that was compounded by anxiousness about being away from work for so long. Since coming back to work, the limits of being a working mother have been a source of some pressure, but everyone in my department and family has been really encouraging. Balancing a career and childcare is certainly a challenge, but it’s one I took on readily and I feel happy and fulfilled in both roles. I’m really grateful to have such support, and I will continue to do my very best both at work and at home.

Advanced Technology Marketing Dept.  Naoko Nakajima

Advanced Technology Marketing Dept.
Naoko Nakajima

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.

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

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

DIC was certified for the first time in the large enterprise category (dubbed the “White 500”) of the 2018 Health & Productivity Outstanding Entities Recognition Program, which is organized by Japan’s Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi*1. 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.

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.

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