CSR Activities | Dialogue with Stakeholders

Toward the Finalization of Materiality to Enhance TDK’s Value

Since fiscal 2013 TDK has been working toward the finalization of materiality (important issues) on the basis of the 4th edition of the Global Reporting Initiative’s Sustainability Reporting Guidelines. In the process, in order to embrace the perspective of stakeholders, we have been actively tapping assessment from outside the company. In October 2015 we invited three experts to join us in a dialogue and let us know their knowledgeable opinions on a wide range of issues, including what points TDK should emphasize in its materiality and, looking beyond the finalization of materiality, their expectations of TDK in the future.

Date of implementation: October 9, 2015

Opinions and Proposals from the Experts

Publicize relationship between efforts in nonfinancial fields and main business

Keisuke Takegahara

General Manager,
Environmental Initiative &
Corporate Social
Responsibility
Support Department Development Bank of Japan,
Inc.

Joined the Japan
Development Bank (now the
Development Bank of Japan,
Inc.) in 1989. Stationed for a
total of six years in Frankfurt,
Germany. Developed the
DBJ’s environmental rating
loan scheme and is known as
a leading figure in the field of
environmental finance
in Japan.

Nonfinancial fields, such as environmental, social, and governance issues, are the foundation on which a company builds trust with society. In recent years, with the emergence of the concept of materiality, these nonfinancial fields have been attracting more and more attention from investors as values supporting a company’s performance under the surface. In these circumstances, the need to explain the relationship of efforts in nonfinancial fields to the company’s main business is growing, and expectations are rising for the transmission of materiality that connects business expansion and the realization of social values.
Regarding environmental aspects, for example, TDK has already achieved the goal of carbon neutrality and in the future, I believe, will develop these efforts widely around the world, including among new acquisitions. In other words, the more TDK’s products are sold and sales increase, the less will be the environmental load on society as a whole. I hope that by positively asserting this connection in its materiality, TDK can convey its corporate value as an even more powerful message.

Hoping for challenges in fields where customer needs and social needs overlap

Toshihiko Fujii

Consulting Fellow
Research Institute of Economy,
Trade and Industry


Entered the Ministry of Trade
and Industry (now the Ministry
of Economy, Trade, and
Industry) in 1987 and became
active as an expert in
international negotiations.
Also has an extensive
knowledge of CSR and has
written the third-party opinion
for TDK’s CSR Report since
2013.

As a premise when talking about contributions to society, the essential point is to clarify what kind of society the corporate group is seeking to realize. For example, regarding response to the supply chain, sometimes guidance is necessary for a supplier facing problems. Such “involvement” only has meaning when the purpose is clear. Similarly, in the promotion of diversity, it is essential to share values on the basis of lofty targets in order to bring diverse human resources together as one.
It may be difficult for TDK, because as a midstream company you are in the middle of the value chain and have few opportunities to come into direct contact with society through your products and services. And it is a fact that, for a BtoB company, the needs of customers and social needs do not perfectly match. But if all of your employees are facing in the same direction, and if every individual employee embodies your corporate principles of “vision, courage, and trust,” I think TDK can overcome these restrictions. Based on your strong determination to realize a desirable society, I hope that you will make challenges so as to seek business in the parts where customer needs and social needs do overlap.

Clarification and sharing of envisioned company image and created values are essential

Yayoi Masuda

President, Yayoi Japan Co.,
Ltd.


Serves as a consultant on
leadership development and
organizational development
or the promotion of global
corporate management. After
working at Ricoh Co., Ltd. and
the US head office of Levi
Strauss & Co., became head
of the Asia-Pacific Human
Resources Development
Department at the US head
office of Nike, Inc. before
setting up her own consulting
company in Japan.

In order to become a truly global enterprise, it is necessary for TDK to specifically draw the image of the kind of global enterprise it aims to be in a way that all of the TDK Group’s employees around the world can understand. On the personnel side, TDK must convey what "global talent" really means and how they are to be trained. A sense of involvement and enthusiasm for growth will be fostered even more by continuous dialogue. The key will be talent management not limited to employees in Japan but covering the whole world.
You should translate and articulate your vision and targets so that everyone can understand them. In the end, a process in which employees are evaluated based on fair indexes will lead to the promotion of genuine diversity. And in parallel with that, in order to achieve growth on the global stage, the values that TDK wants to supply to society must be shared among all employees around the world, so that all directors and employees behave in accordance with steadfast axes and values. I look forward to TDK employees around the world displaying their talents with even greater pride in their company.

Reflections on the Expert Opinions

Clarification and sharing of envisioned company image and created values are essential

Noboru Saito

Director and Senior Vice
President,
General Manager of
Corporate Strategy HQ

I was made aware once again that it is essential to disseminate the Corporate Vision and TDK Value to every individual employee, eliminate the barriers of nationality, language, and organization, and build an organization in which we can interact. At the root of the risks and chances surrounding the TDK Group are people, and I am deeply aware of their importance. We have many issues to overcome before we can fully come together as a truly global enterprise. But on the basis of our corporate motto of “Contribute to culture and industry through creativity,” we must continue to strive to become an awesome company that makes people say that, without our products, their convenient and affluent lifestyle would be impossible.

Takakazu Momozuka

Corporate Officer,
General Manager of
Administration HQ

In response to the announcement of the Corporate Governance Code and Stewardship Code, the viewpoint of investors has been gradually shifting in recent years from the short term to the long term. In these circumstances, TDK recognizes that it is extremely important to clearly convey its materiality. TDK has its base in Japan, but for the promotion of globalization, there is perhaps no need to limit corporate functions to Japan. Once again I was made keenly aware of the importance of disseminating and sharing TDK’s philosophy and DNA among employees around the whole world, wherever the site may be.

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