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 free competition 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 FY2020

To follow our dreams for the future! Ensuring high profitability that remains stable against external environments.

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 them together at the morning assembly to increase their awareness and ensure that they are put into practice.

DMC'S 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.

DMC held seminars regarding CSR movements in other companies and issues in DMC approaches to CSR activities provided by external lecturers targeting the managers of individual departments and divisions.

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 760 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 wellbeing for all at all ages	Development and manufacture of medical-use touchscreens Employee health promotion (Mental health)
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)
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 multi-language needs
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
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

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	FY2019 Targets	Assess- ment	FY2019 Achievements	FY2020 Targets	Contribution to SDGs
Product Safety & Security	Product Safety & Security	Continual operation of quality management system	Expansion of quality management assessment by a third party	○	Implemented third-party quality management assessment and acquired certifications Inspected operational structure of the new factory built in 2019	Reducing serious complaints
Respect for Human Rights	Human Rights Protection	Establishment and operation of the system that develops human rights awareness	Holding seminars for newly hired employees	○	Provided seminars for newly hired employees on corporate policies and regulations regarding human rights protection and harassment	Providing employee seminars to raise awareness of human rights: 100% attendance rate
Labor Practices	Promotion of Diversity	DMC develops and utilizes a wide variety of human resources to reinforce diversity management.	Holding basic seminars for managers and seminars for women’s empowerment	○	Two female employees with leadership potential were selected to attend basic seminars for managers	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.
	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: 7 hours Ratio of paid-holiday use: 76.5%	Total overtime working hours: Average of eight hours or less per month Ratio of paid-holiday use: 80%
	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).	○	Provided seminars for managers, evaluation seminars, basic seminars for managers, seminars for review, and seminars for employees who have worked six months after joining the Company. Provided English conversation classes at each base (weekly).	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%*
	Work Environment Safety	DMC promotes the health and safety of employees and conducts vigorous business management.	Health check rate: Maintaining 100%	○	Health check rate: Achieved 100%	Health check rate: Maintaining 100% Influenza vaccination rate: 100%*
Sustainable supply chain management	CSR Procurement	DMC promotes supplier compliance with CSR procurement guidelines and expands application to new customers.	Maintenance of CSR Guidelines Cooperating with customers for their CSR procurement Validation and review of CSR supplier questionnaires	○	DMC conducted surveys on conflict minerals and chemicals specified by the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) DMC examined and reviewed the previous CSR supplier questionnaires to prepare for the next CSR questionnaire.	Providing CSR supplier questionnaires to partner and cooperative companies: 80%
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 CO2 emissions: 9.6% from previous year	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
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.	Participation in social contribution activities Organizing social contribution activities Promoting forest conservation activities including afforestation, etc. (Overseas)	○	Recycling activities through the collection of empty contact lens cases Fund-raising for typhoon damage Participated in the presentation of new types of rice produced in Fukushima, DMC’s hometown Exchanged opinions at council meetings for local corporations Attended six times)	Fund-raising activities for disasters Promoting forest conservation activities, including afforestation, etc. (Overseas)
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: 50%	△	Provided compliance seminars for newly hired employees (Participation rate: 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.	Publication and improvement of CSR Report	△	Established the revised plan for CSR midterm policies	Reviewing CSR mid-term policies and promoting goal achievement	-