Organizational Governance: Material Issues

Organizational Governance

Material Issues for the AGC Group

The AGC Group has introduced a CSR Monitoring Framework based on ISO 26000. Accordingly, the Group provides information for stakeholders via its CSR Website and other means, reporting on its targets and results in connection with the material issues specified in the Matrix of CSR Issues designated in this monitoring framework, namely “Issues for which a framework is to be developed and a commitment made to society”.

The AGC Group has examined the materiality of each issue by corresponding to Related Actions and Expectations of ISO 26000, and designated selected material issues to correspond to the ISO 26000 core subjects of Organizational Governance. The reasons for selecting these material issues are as follows.

Material Issues Corresponding to the ISO 26000 Core Subject of Organizational Governance

Issue Related actions and expectations
Decision-making processes and structures
  • Nurture an environment in which the principle of social responsibility (accountability) is practiced
  • Nurture an environment in which the principle of social responsibility (transparency) is practiced
  • Nurture an environment in which the principle of social responsibility (ethical behavior) is practiced
  • Nurture an environment in which the principle of social responsibility (respect for the rule of law) is practiced
  • Balance the authority, responsibility and ability levels of decision-makers
  • Periodically review and evaluate the governance process

Reasons for Selection of Material Issues

Organizational governance is the foundation of Core Issues in ISO26000 and is indispensable in the promotion of social responsibility. With legislation regarding disclosure of non-financial information becoming stricter in respective countries and regions, companies are required to improve the transparency and accountability of their activities, adopting ethical behavior voluntarily.

The AGC Group recognizes that it is essential to include corporate ethics in all of its business activities in order to continue business operations.

Management Approach (Organizational Management Methods)

The AGC Group builds effective management systems and promotes efforts regarding material issues based on shared Group policies.

Related Policies, Rules and Regulations

Promotion Systems

Results of 2015 Activities

The following charts show the AGC Group’s 2015 results, self-evaluation, and 2016 targets in connection with its material issues. For detailed information on each activity and other initiatives related to Organizational Governance, please refer to the respective Web pages (accessible via the links in the upper right).

Criteria for Self-evaluation

A: Satisfactory level, in which the intended target has been achieved
B: Almost satisfactory level, in which a part of the intended target has not yet been achieved and some issues still remain
C: Unsatisfactory level, in which the intended target has not been achieved

2015 targets 2015 major initiative results Self-
evaluation
2016 targets
Continue to ensure effective communications in and outside the Group   A Continue to ensure effective communications in and outside the Group
  • Use a variety of communication tools to disclose the AGC Group’s initiatives and its stance of unifying and promoting business and CSR activities, together with the new management policy AGC plus, in ways that are easier to understand.
  • Continue to be selected by major SRI Indexes by appropriately responding to the demands of society through communications with stockholders
  • Communicated business and CSR activities to stakeholders from a cross-Group perspective in easily understandable ways through the AGC Report 2015, which included a special report on the management policy AGC plus
  • Extensively highlighted the AGC Group's contributions to the environment through upbeat press releases featuring Japan’s energy-saving products and the Group's increased capacity to manufacture energy-saving products in Thailand, where products that lower energy use in buildings are increasingly in demand
  • Continued to be selected by major SRI Indexes, including, for the first time, the FTSE4Good Global Index, as well as Ethibel, MSCI, MS-SRI (Morningstar)
  • Use a variety of communication tools to provide a simple explanation of the AGC Group’s initiatives and its stance of unifying and promoting business and CSR activities, together with the new management policy AGC plus, which outlines the Group’s long-term strategy “Vision 2025”
  • Promote dialogue with shareholders, disclose and provide information on current management policy, business performance, and major initiatives taken by the President & CEO at briefings with investors and general shareholder meetings
  • Communicate opinions gleaned through dialogue with shareholders to management and relevant in-house departments
  • Continue to be selected by major SRI Indexes by appropriately responding to the demands of society through communications with stockholders
Continue to promote compliance   A Continue to promote compliance
  • Continue to conduct ongoing compliance training and online training programs for Group employees
  • Further expand the scope of Group employees requested to submit Personal Certifications on the Code of Conduct (employees subject to alternate policies if the system renders the submission of certifications difficult)
  • Implemented compliance training by region.
    [Results (Note 1)]
    • • Online training: Approx.11,500 employees (Japan), approx. 4,100 employees (Europe and North America)
    • • Classroom training: Approx. 350 employees (Japan), approx. 1,400 employees (Europe and North America)
  • Approximately 80% of all Group employees is subject to submitting Personal Certifications on the Code of Conduct
  • Continue to conduct ongoing compliance training and online training programs
  • Continue to submit Personal Certifications
  • Continue to expand and regularly conduct awareness surveys
Implementing effective audits and promoting the PDCA cycle   A Implementing effective audits and promoting the PDCA cycle
  • Globally conduct audits regarding the creation of measures for preventing bribery and corruption, in addition to frameworks for antitrust law compliance systems and for preventing the leakage of confidential information
  • Conduct theme audits on risks related to new product and technology imitations in Asia including Japan, and on risks related to outsourcing in Europe.
  • Conducted 52 internal audits in the Group and continued to audit the establishment of frameworks for antitrust law compliance systems, preventing the leakage of confidential information, and prevention of bribery as global audit items.
  • Implemented theme audits by region.
    [Results]
    • •Asia including Japan: Audited "initiatives to lower the risks related to new product and technology imitations" (8 organizations and sites in Japan)
    • • Europe: Audited "initiatives to lower the risk related to outsourcing" (4 countries, 6 organizations and sites)
  • Conduct audits in which compliance with antitrust laws, prevention from confidential information leakage, prevention of bribery and corruption, and securing the credibility of data (added) are set as globally shared items of importance
  • Conduct audits on the shared themes of information transfer when problems or scandals occur, securing means for consultation, and problems in operation (including the functional status of the internal reporting system)
  • (Note 1) Only training directly implemented in Asia including Japan, Europe and North America by the Compliance Committee. Does not include training implemented by individual Group companies.

Major Achievements in 2015

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