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.

Fiscal 2020 Goals and Achievements / Evaluations and Future Activities

Fiscal 2020 Goals Achievements
To achieve 100% implementation of CSR self-checks at manufacturing sites (TDK Group manufacturing sites) Achieved 100% implementation
To achieve 100% implementation of labor, human rights, and ethics risk assessments at manufacturing sites (TDK Group manufacturing sites) Achieved 100% implementation
To ensure audit opportunities once every two years by a third party (high-risk countries in Asia, including China) 100% implementation except for one site, due to repercussions from Covid-19
To continually implement CSR training Training conducted remotely for ASEAN-area HR meetings
To implement internal audits on workers’ rights and corporate ethics by internal auditors Achieved 100% implementation at targeted sites
Fiscal 2021 Goals
To achieve 100% implementation of CSR self-checks at manufacturing sites (TDK Group manufacturing sites)
To achieve 100% implementation of labor, human rights, and ethics risk assessments at manufacturing sites (TDK Group manufacturing sites)
At all production sites, to conduct at least once every 3 years either an RBA-approved third-party audit (VAP, AMA, CMA), customer CSR audit, or CSR assessment based on the RBA VAP Operations Manual
To conduct training for personnel involved with CSR in Japan and overseas
To achieve 100% implementation of labor, human rights , and ethics internal audits at targeted manufacturing sites

Evaluations and Future Activities

In fiscal 2020, changes occurred in work styles in response to Covid-19 restrictions, and a switch was made to remote auditing with online field audits. This and other adjustments have allowed activities to go on largely as scheduled.
From fiscal 2021 forward, we will continue to improve and strengthen regular activities, while improving efforts that have fallen short nationally or regionally. Using the RBA framework, we will plan initiatives to be implemented more consistently group-wide.

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.
Labor, human rights, and ethics 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 fiscal 2020, questions on managing hazardous substances were added to the RBA check items. Also, feedback was provided to specified sites on how to make improvements when less than ideal responses were received on check items.

Labor, Human Rights, and Ethics Risk Assessments

Regarding risk assessments, we clarify the risks in labor, human rights, and corporate ethics that are not covered by other efforts such as environmental or occupational health and safety risk assessments, take measures to promote 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 fiscal 2020, based on a change in labor law related to wages, we created check items for wages and items to evaluate the status of the work interval system and supplier responsibility. Risk assessment results showed issues that presented risk, but measures were already in place, so there were no remaining 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 fiscal 2020, Covid-19 made it difficult to conduct field audits, so remote audits were conducted online, keeping activities going generally as scheduled.

Trainings and Dialogues

With a systematic understanding of RBA and customer requirements related to CSR, we provide timely training for quick responses. In fiscal 2020, upon the revision of the RBA Code of Conduct, we conducted training for ASEAN-area personnel meetings. Also, as a member of the RBA, we have been promoting participation in many kinds of training offered by the RBA to raise the level of our CSR activities even further.

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