Management and CSR | Touchscreen specialist manufacturer DMC

MANAGEMENT CSR

Corp Management & CSR

Toward an exciting
future

Challenge Today for an Exciting Tomorrow.

With the USCO Group motto of “Toward an exciting future” as our guide, we strive to provide the most effective support to companies working to achieve their dreams.

Following this motto, DMC provides touchscreens with novel potential to create happiness and a brighter future for all.

PHILOSOPHY

Corporate Philosophy

DMC strives to achieve sustainable growth while promoting happiness throughout society.

SYSTEM

Corporate Philosophy
Structure

DMC considers its corporate philosophy the heart and soul of its business activities. Following this philosophy, all employees work together to contribute to the affluence and sustainability of the society we serve.

1) Management Policy
- We promote fair, transparent and freecompetition and strive to ensure appropriate transactions in accordance with rules and principles.
- We work on procurement, production and sales with social and environmental consideration that contribute to the realization of a sustainable society.
- We provide customers with the best value to ensure mutual growth.
- We respect the individuality of all employees as we provide a safe and secure working environment for mutual growth through sustainable business.
- We respect the culture and customs of our neighbors around the world as we strive to contribute to the development of society through sustainable business growth.

2) Action Agenda

Pursuing cooperation between Indonesia and Japan, DMC establishes trusting customer relationships and maintains stable profits.

Purposes
1. - Prioritizing employee happiness while contributing to regional society
2. - Promoting regional employment
3. - Investing profit into next-generation business
Goals
1. - All employees improve themselves while helping others to improve.
2. - Employees take responsibility for their current and future roles as they take effective action.

3) Action Plan FY2021

Ambidextrous management Securing overwhelming profits through the deepening of businesses and a shift to the next generation (products / services / human resources)

4) Daily Activities (Practice items designed to create the future)

We list day-to-day work attitudes in Practice Items to Create the Future.

All employees recite these together at morning assemblies to increase their awareness and ensure that they are put into practice.

CSR

DMC CSR

CSR Concept

DMC touchscreens are used in indicators, industrial-use monitors, machine tools, measurement devices as well as in KIOSK and other terminals. Recently, expanded use in public services includes medical devices, ticket machines, and digital signage, showing the important social responsibility that DMC has accepted.

We recognize that providing products, solutions and other services, returning our business achievements to society, and sincerely performing business activities while assuring product safety and security, environmental conservation, compliance with laws and regulations, respect for human rights, and fair and equitable transactions lead to the fulfillment of our social responsibility.

We also recognize that participating in regional activities is an extremely important social responsibility, and we are always on the lookout for more ways to be involved.

CSR Promotion Structure

DMC has established a CSR promotion structure centering on its CSR Secretariat to uniformly promote a wide range of approaches by individual departments and divisions. The CSR Secretariat is directed by the president to ensure that top management is directly involved in the operation of CSR activities. DMC has also established a structure to discuss and report important CSR matters at management meetings to promote uniform approaches for both management and CSR.

DMC leverages multidisciplinary cooperation with departments and divisions in charge of CSR to ensure effective product safety and security, respect for human rights, labor practices, supply chain management, environmental conservation, and regional contribution. The CSR Secretariat provides full support for these activities.

In FY2020, we held CSR seminars on the importance of the human rights policy and supply chain management for newly hired employees to promote in-house CSR activities. Employees in managerial positions recognized issues through the confirmation of progress in CSR promotion at each division to increase the awareness of employees about CSR activities.

ENGAGEMENT

Relationship with
Stakeholders

Stakeholder Engagement

DMC strives to communicate with stakeholders through a wide range of systems to ensure that it remains a company capable of contributing fully to the society we serve. We report opinions of our stakeholders to the top management and reflect them to management activities with stakeholder engagement as the top priority.

Stakeholders	Details	Major Responsibilities and Issues	Means of Communication
Customers	DMC sells touchscreens to distributors and manufacturers around the world.	• Manufacturing high-quality and safe products • Disclosing product information • Designing environmentally friendly products • Stable supply of products and provision of support	• Communication from product development to supply • Providing solutions • Contact information • Customer satisfaction surveys • Direct visits by the President
Shareholders & Financial Institutions	DMC’s sole shareholder is its parent company, USCO Corporation.	• Improvement of corporate value • Appropriate return of profits • Timely and appropriate information disclosure	• Shareholders meeting / Financial settlement briefing • Shareholder meeting reports
Suppliers	DMC strives to realize a sustainable society with suppliers manufacturing ingredients and parts that DMC procures for touchscreen production.	• Stable ordering • CSR promotion throughout the supply chain	• Factory audit • Periodical discussions • CSR procurement questionnaires • Contact information
Employees	DMC has 703 employees in Japan and Indonesia.	• Ensuring a safe and secure working environment • Respect for human rights • Respect for diversity • Development and utilization of human resources	• Hotline • Personnel affairs division • Safety and Health Committee • Labor Union (Indonesia) and periodical meetings • Joint Japan-Indonesia interactions and other events
Regional Society	DMC business activities vitalize the areas we serve while respecting regional cultures and customs around the world.	• Social contribution through business • Through cooperation with local businesses Regional vitalization • Respect for regional cultures and customs • Protection of the regional environment • Creation of employment	• Regional volunteer activities • Interactions with local businesses • Factory visits • Support for restoration from disasters • Contact information • Internship system and school visits in the local communities
Supervisory authorities & Local governments	DMC understands the laws and regulations of each country where we conduct business. We also interact with regional governments to vitalize local areas.	• Compliance to laws and regulations • Cooperation to solve social issues • Regional vitalization through cooperation with local governments	• Making proposals to solve social issues • Information exchange with local governments

SDGS

Approaches to
Sustainable Development
Goals (SDGs)

DMC places a priority on responding to the needs and requests of its business partners, customers, and other stakeholders through its business to fulfill its social responsibility and promote approaches to the sustainable development goals (SDGs) adopted by the United Nations.

What are SDGs?

The SDGs comprise 17 goals and 169 targets set by the United Nations in September 2015 in “Transforming our World: the 2030 Agenda for Sustainable Development.” Under the leadership of the United Nations, many countries have pledged their cooperation to address social and economic development issues such as poverty, gender equality, and social justice within the 15 years from 2015 to 2030 with the hope of realizing a world in which no one is left behind.

Relationship between SDGs and DMC Business

We compare major DMC approaches with SDGs.

Related Goals	DMC Approaches with SDGs
Ensure healthy lives and promote well-being for all at all ages	Development and manufacture of medical-use touchscreens Employee health promotion (Mental health) Development of touchless functions
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all	Human resource cultivation (Support for employees wishing to acquire specialized knowledge, the provision of both group training at different levels and in-house training and seminars, and the cultivation of global human resources) Development and production of touchscreens for electronic blackboards used in correspondence education programs
Achieve gender equality and empower all women and girls	Promotion of diversity (Promotion of social participation by women)
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all	Work-life Balance (Approaches to ensuring appropriate working hours/ Support for child rearing and nursing care) Promotion of diversity (Continuation system/ Promotion of employment of individuals with disabilities) Prevention of industrial accidents through the promotion of 5S
Reduce inequality within and among countries	Protecting human rights (In-house rooting of human rights policy/ Compliance with human rights policy) Development and manufacture of touchscreens responding to multilanguage needs
Realize the development of comprehensive, safe, resilient and sustainable cities and living environments	Contribution to communities using valuables produced in the process of appropriate waste management and effective use for welfare activities
Ensure sustainable consumption and production patterns	Publication of CSR Report Reduction of waste Chemical substance management Development and manufacture of durable touchscreens with weather resistance CSR procurement (Implementation of procurement policy and guidelines, conducting questionnaires) Afforestation (Mangrove seedlings) Reduction in the use of paper Development and manufacture of touchscreens corresponding to touch pen operation to realize paperless meetings Promotion of paperless operations
Take urgent action to combat climate change and its impact	Reduction of CO2 emissions Environmental education (Holding seminars on quality control and environmental management systems) Water resource conservation Preparation for natural disasters caused by climate change through BCP

CSR Mid- and Long-term Policies

DMC established FY2018 CSR Mid- and Long-term Policies to promote CSR activities. We share annual goals, issues, and improvement plans among all employees and implement the PDCA cycle aiming to achieve goals.

Fields	CSR Items	Mid- and Long-term Policies	FY2020 Targets	Assess- ment	FY2020 Achievements	FY2021 Targets	Contribution to SDGs
Product Safety & Security	Product Safety & Security	Continual operation of quality management system	Reducing serious complaints	○	Reduced complaints related to lots by 60% compared with the previous year Reduced complaints by 15% compared with the previous year	Reducing compensation for complaints by 27% compared with the previous year
Respect for Human Rights	Human Rights Protection	Establishment and operation of the system that develops human rights awareness	Providing employee seminars to raise awareness of human rights: 100% attendance rate	○	Held compliance seminars, including human rights and harassments, for newly hired employees Held human rights seminars for employees in managerial positions Held web seminars on human rights and harassment for all employees	Continuation of human rights seminars for newly hired employees Holding nonregular moral seminars, and delivered education materials to increase awareness of human rights, harassment, and compliance (once per month)
Labor Practices	Promotion of Diversity	DMC develops and utilizes a wide variety of human resources to reinforce diversity management.	Nurturing the female employees with leadership potential Holding newly appointed manager trainings and leadership trainings and nurturing the female employees who apply for managers and leaders.	○	One female employee with leadership potential was selected to attend basic seminars for managers Seven female employees with leadership potential were selected to attend leadership seminars	Continual cultivation of female employees with leadership potential Continually holding seminars about knowledge and skills required for employees in managerial positions
	Work-life Balance	DMC strives to maintain a working environment that allows employees to maintain a good work-family balance.	Total overtime working hours: Average of eight hours or less per month Ratio of paid-holiday use: 80%	△	Total overtime working hours: Average of 7.2 hours per month Ratio of paid-holiday use: 52.2% *1	Total overtime working hours: Average of 10 hours or less per month *2 Ratio of paid-holiday use: 76.5%
	Human Resource Cultivation	DMC develops the abilities of employees to develop human resources that support business activities.	Holding seminars for both new and current employees in managerial positions, and training to improve language ability (English). Providing in-house interviews to increase employee motivation for work: 100% *3	△	Held basic seminars for managers, leadership seminars for employees in managerial positions, seminars for evaluators, and joint seminars for employees in their 1st and 2nd years of employment Language seminars were not held due to COVID-19. Held in-house interviews for all employees	Holding seminars for different categories of employees such as newly hired employees, general employees, leaders, and employees in managerial positions
	Work Environment Safety	DMC promotes the health and safety of employees and conducts vigorous business management.	Health check rate: Maintaining 100% Influenza vaccination rate: 100%	△	Health examination rate: 100% Influenza vaccination rate: 22.7%	Health check rate: Maintaining 100% Influenza vaccination rate: 80%
Sustainable supply chain management	CSR Procurement	DMC promotes supplier compliance with CSR procurement guidelines and expands application to new customers.	Providing CSR supplier questionnaires to partner and cooperative companies: 80%	×	DMC conducted surveys on conflict minerals and chemicals specified by the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) CSR supplier questionnaires were not provided.	Rate of requests to current suppliers to submit a Confirmation of Consent to adhere to the CSR Procurement Guidelines: 80% Making requests to new suppliers to submit a Confirmation of Consent to said CSR Procurement Guidelines
Environmental Conservation	Environmental Conservation	DMC effectively uses energy and resources and contributes to environmental conservation through recycling and the reduction of waste.	Reduction of CO2 emissions (Compared with the previous year) Reduction of wastes by changing specifications of parts and ingredients Reduction of wastes by improving processes	○	Reduced CO2 emissions by 16% compared with the previous year Reduced 3% waste disposal compared with previous year Reduced loss in manufacturing processes by 32% compared with the previous year	Reduction of CO2 emissions (Compared with the previous year) Collection of recyclable precious metals to reduce waste Collecting confidential documents and recycling to create regenerated pulp Reducing loss caused by design errors by 58% compared with the previous year
Regional Contribution	Contribution to Regional Society	DMC contributes to the realization of a better society through social contribution activities as a company that continuously strives to maintain the trust of stakeholders. Respecting cultures and histories in different countries and regions and aiming to establish a strong bond as a part of the regional society	Fund-raising activities for disasters Promoting forest conservation activities including afforestation, etc. (Overseas)	△	Donated part of recycling profits to the Chiisana Osewabin campaign by the Shirakawa Chamber of Commerce and Industry. Fund-raising activities for disasters were not carried out.	Recycling activities through the collection of empty contact lens cases Accepting students from two high schools in Fukushima Prefecture into an internship program Cleaning local communities (April - November) Cleaning around the Shirakawa Factory Participation in Shirakawa Youth Association (Volunteer activities, etc.) Returning part of profits from recycling to local communities
Management Structure	Corporate Governance	DMC ensures transparency and fairness in its business activities, continues sustainable growth and increases corporate value.	Promoting transparent management through the provision of opportunities to communicate with stakeholders (employees, partners, local residents, shareholders, etc.) more than the previous year.	○	Held meetings for group company presidents Employees: Provided monthly reports to factories and offices, and communicated with employees Business partners: Held meetings with important business partners Regions: Participated in briefings at industrial parks Shareholders: Submitted monthly reports and held joint strategy meetings twice yearly	Promoting transparent management through the provision of opportunities to communicate with stakeholders (employees, partners, local residents, shareholders, etc.) more than the previous year.
	Compliance	DMC understands and follows both domestic and overseas laws, regulations, and customs, and it take action with a spirit of high corporate ethics.	Seminars regarding compliance: four times a year Participation rate of seminars regarding compliance: 80%	○	Held web seminars, including compliance (Rate of participation of full-time employees: 100%)	Seminars regarding compliance: Four times a year Attendance rate: Improving to 80%
	CSR Management	DMC promotes CSR management responding to the needs of and requests from stakeholders and society.	Reviewing CSR mid-term policies and promoting goal achievement	△	Established the revised plan for CSR mid-term policies	Reviewing CSR mid-term policies and promoting goal achievement	-

*1 Due to shutdown periods for prevention of COVID-19
*2 Overtime is expected to increase due to urgent task.
*3 Contract employees have interview with immediate managers.