Sustainability | SocietySocial and Environmental Consideration at Manufacturing Sites

Our Approach

TDK recognizes that striving for social and environmental consideration at the Group’s production sites and fulfilling our social responsibilities is important as a supplier to continue our business. We strive to understand issues and make continuous improvements in a three-stage framework comprising self-assessments, audits, and training and dialogue.

CSR management framework at our manufacturing sites
CSR management framework at our manufacturing sites

Structure

We have specified a person in charge at each manufacturing site to promote this approach, with the Headquarters CSR function providing supervision.

Goals and Results of FY2019 and Goals of FY2020

Fiscal 2019 Goals Achievements
To perform 100% CSR self-checks at manufacturing sites Achieved 100% implementation
To perform 100% labor and ethics risk assessment at manufacturing sites Achieved 100% implementation
To secure 100% opportunities for third-party CSR audits once every two years (High-risk countries of Asia including China) Achieved 100% implementation (high-risk countries in Asia, including China)

Future Activities

We will improve and strengthen our conventional activities and continue striving to understand and improve issues.

Goals of FY2020
To achieve 100% implementation of CSR self-checks in production sites (TDK Group production sites)
To achieve 100% implementation of labor, human rights, and ethics risk assessments in production sites (TDK Group production sites)
To ensure audit opportunities once every two years by a third party (high-risk countries in Asia, including China)
To continually implement CSR training
To implement internal audits on workers’ rights and corporate ethics by internal auditors

Concrete Activities

Self-assessments

Frequency Implementation site Content
CSR self-checks Every year All TDK Group production sites Personnel in charge at the sites will answer questionnaires regarding the RBA check items (human rights, health and safety, environment, and ethics). We will give feedback on the results and implement improvement measures at each site.
Risk assessments Every year All TDK Group production sites The check items are updated every year based on social trends. Personnel in charge at the sites will answer questionnaires. We will develop and execute improvement plans based on analysis results.

CSR Self-Checks

At TDK, we create a TDK CSR self-check sheet concerning human rights, health and safety, environment, and ethics by adding questions specific to TDK to the RBA check items, which is a global standard, and conduct a self-diagnosis at all production sites every year. This is intended to let us grasp the current situation at production sites, extract potential issues and their responses, and provide quick responses to customers’ CSR survey requests.
After the personnel in charge at the sites answer the questionnaires, we analyze their answers at the Sustainability Promotion Headquarters and provide feedback to each site.
In FY2019, we made improvements at some of the sites where responses were delayed, such as production sites that were recently put into operation.

Risk Assessments

Regarding the risk assessments, we clarify the risks in labor and corporate ethics, take measures to make improvements and corrections if there are residual risks, and implement the assessment every year at all production sites for the purpose of carrying out the PDCA cycle at each base and making continuous improvements.
We update the check items every year based on social trends, and after the personnel in charge at the sites answer the questionnaires, we analyze the answers at the Sustainability Promotion Headquarters and provide feedback to the sites. Based on that, the sites establish and execute improvement plans.
In FY2019, we added items related to temporary staffing agencies and temporary employees and check items related to bribery cases. The risk assessment results showed that there were issues identified as risks, but measures have already been taken, and there were no residual risks.

Audits

Frequency Implementation site Content
Self-audits Once every two years
  • High-risk countries/regions
  • Sites where customers have not conducted audits
  • Implemented for RBA audit items
  • Conduct audits by external auditing firms
Simple CSR audits Once every two years
  • Low-risk countries/regions
  • Sites that are not audited by a third-party organization
  • Conduct audits on important matters based on the RBA audit items
  • Implement audits at the Sustainability Promotion Headquarters
Corporate internal audits Every year
  • Sites that support audits by customers
  • Consider audit items related to labor, human rights, and corporate ethics taking risks into consideration
  • Audits conducted by the people in charge of the CSR groups and people in charge of other sites within the areas who have completed training for CSR auditors
Audits by customers As necessary
  • Implemented according to customer requests
  • Implemented according to customer requests

The four types of audits are self-audits, simple CSR audits, corporate internal audits, and audits by customers. TDK-led Audits that are not conducted by customers are conducted based on the RBA audit items and have established a mechanism that can maintain the level of labor, safety and health, environment, ethics, and management systems at global standards. Audits by external auditing firms are implemented once every two years in countries and regions that we recognize as high risk according to our own standards.
In FY2019, we strengthened health and safety management in CSR, leading to fewer issues that are pointed out in customer audits.

Trainings and Dialogues

We believe that systematically understanding customers’ requirements regarding CSR and acquiring a foundation to evaluate own CSR activities are important for improving the level of future CSR activities, and we implement CSR internal auditor training taking into account the availability of human resources at the sites.
We also implement training with contents according to local needs for the purpose of further improving the level of our CSR activities. In FY2019, we implemented CSR training tailored to the actual conditions of each area. Training regarding the revised parts of the RBA Code of Conduct was conducted in China, the management of recruitment agencies in area corporate human resource meetings in Asia (excluding China), RBA requirements in the United States, and internal auditor training in Japan.

CSR internal auditor training by an external auditing firm
CSR internal auditor training by an external auditing firm (China)

Recommendations

PAGE TOP