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Bringing CSR to the Next Level

Bringing CSR to the Next Level. Human Rights & Diversity at Hitachi in Europe. Hitachi European Conference 9 th July 2009 Hans Daems (HEU) Emily Minton (HEU) Support from Yukako Kinoshita (HIBRU). Fundamental Credo.

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Bringing CSR to the Next Level

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  1. Bringing CSR to the Next Level Human Rights & Diversityat Hitachi in Europe Hitachi European Conference9th July 2009Hans Daems (HEU) Emily Minton (HEU) Support from Yukako Kinoshita (HIBRU)

  2. Fundamental Credo “The basic credo of Hitachi is to further elevate its founding concepts of harmony, sincerity and pioneering spirit, to instill a resolute pride in being a member of Hitachi, and thereby to contribute to society through the development of superior, original technology and products” Namihei Odaira, founder (founded Hitachi in 1910) Back to Basics Hitachi’s origins: a sense of responsibility towards society .…which still applies today “Hitachi will continue to expand its businesses through global social innovation” President Kawamura (May 2009)

  3. Re-cap of Last Year

  4. Hitachi’s CSR Focus Areas in Europe Hitachi Group CSR Policy 1 Commitment to CSR 2 Contribution to Society Through our Business 3 Disclosure of Information and Stakeholder Engagement 4 Corporate Ethics and Human Rights 5 Environmental Conservation 6 Corporate Citizenship Activities 7 Working Environment 8 Responsible Partnership with Business partners

  5. Brief Description What Is It?

  6. What are ‘Human Rights’? “All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood”. - Article 1 of the United Nations Universal Declaration of Human Rights Freedom of expression Equality before the law Life & liberty Work Anti-discrimination Culture Education Objective: Contribute to Improving Human Rights through Social Innovation Business

  7. What is ‘Diversity’? • Our key focus • -Proactive approach to address anti-discrimination • Gender Equality = one of the founding principles of the EU • One of the key focus areas for SRI investors and agencies • In line with Hitachi Ltd: project reporting directly to President • Hitachi in Europe survey results show gender is a key issue for • us Objective: Contribute to Innovation through Diversity

  8. Gender diversity Proactive approach Do good Standard United Nations Global Compact Do no harm Human Rights Compliance =Fundamentalbasis International Bill of Human Rights From Compliance to Proactive

  9. Reasons Why Now?

  10. Human Rights – Why Now? External drivers • United Nations Global Compact • Hitachi became a UNGC signatory (Feb 2009) • We have therefore made an official commitment to uphold and promote its ‘Ten Principles’ Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. Labour Standards Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. Key: to promote these values through social innovation business

  11. Ignore human rights compliance Exposure to name and shame Loss of brand and business Human Rights – Why Now? External drivers • Increasing focus on businesses’ compliance to human rights • Large surge of focus on businesses’ conduct regarding human rights by external stakeholders (customers, investors, NGOs, journalists): • e.g. Financial Times: Hitachi’s mineral sourcing from the DRC • Global Witness: Hitachi’s mineral sourcing from the DRC • SOMO: Hitachi’s factory labour conditions • Questionnaires from customers (DMG, HDS, HCUK)

  12. Diversity - Why Now? External drivers • Competitiveness • Non-financial factors are increasingly giving companies a competitive edge • Share-prices (2008): companies with a management at least 38% women suffered less • Largest declines were recorded by companies with at least 75% male management • Demographic change • Growing female population on the labour market • 60% of recent graduates in Europe are women • (European Commission)

  13. Sexual discrimination Hitachi in Europe’s Human Rights – The Facts Internal challenges • What percentage of Business Groups have experienced issues regarding an aspect of human rights? 33% 2) What aspect of human rights had the largest number of issues? 3) What percentage of Business Groups currently have a policy on human rights? 25% (67% said they would find a Group-wide human rights policy useful) European Business Group CSR survey conducted by Hitachi Europe Ltd: July 2008

  14. EU: 33% Hitachi: 21% Male: 33% Female: 13% Hitachi in Europe’s Diversity – The Facts Internal challenges 1) What is our average percentage of female managers in comparison to the EU average? 2) What is the proportion of managers in the total male headcount and total female headcount? European Business Group CSR survey conducted by Hitachi Europe Ltd: July 2008

  15. From Compliance to Opportunity The Business Case

  16. Benefits and Opportunities Human Rights Contribute to improving human rights through social innovation business Trusted company Hitachi Construction Machinery Demining machine in operation in Cambodia Sustainable business “Business without ethics is not sustainable” (Georg Kell, Director of the United Nations Global Compact)

  17. Benefits and Opportunities Diversity Enhance innovation through diversified knowledge Diverse range of people for a diverse business Higher employee motivation by providing real developing opportunities

  18. Effective CSR Listed in SRI ranking indices Attract investment Benefits and Opportunities • Two of the largest • Socially Responsible Investment (SRI) • ranking indices: • DJSI (research by SAM) • Corporate transparency, linkage • between CSR and business strategy • FTSE4Good (research by EIRIS) • Corporate transparency, human rights and ethics, • environment, management system

  19. Recent SRI index rankings

  20. Benefits - Summary • Seize opportunities • Attract Socially Responsible Investment (SRI) • Credible CSR policy = brand differentiation • Attract and retain best talent – Employer Branding • Access to quality business partners • Obtain status of “preferred partner” • Customer satisfaction and loyalty • Improve risk management • Fulfil investors’ requirements • Public Relations opportunities • Government regulation • Eliminate risks • Increased civil and criminal litigation against • companies and management • Loss of top talents • Loss of investors • Increased cost of capital • Decline in stock value • Loss of business partners and customers • Exposure to naming and shaming = loss of • brand value

  21. Action So… What Do We Do?

  22. FY08 to Date • Pan-European CSR Ideas Competition & • Awards Ceremony (May 2008) • European Corporate CSR Team established (April 2008) • -(HEU, HIBRU + support from HEU HR managers) • 1st CSR Working Group meeting (May 2008) • - Focus areas identified: environment, human rights, diversity • EuropeanBusiness Group survey (July - August 2008) • 2nd CSR Working Group meeting (November 2008) • - Diversity & human rights project established • 1st Diversity & Human Rights Kick-off meeting (June 2008) (CEE giving an opening speech at the 1st CSR Working Group meeting)

  23. FY09 – Going Forward Internal • Expand involvement of Business Groups across Europe • Develop Diversity & Human Rights Tool Package • Collaborate with Hitachi Ltd. • -Global CSR Meeting (July 2009) External • Collaborate with external CSR • organisations • - CSR Europe • - United Nations Global Compact • Engage external stakeholders • - Stakeholder Dialogue Meeting (September 2009) • Try to achieve 2009 global sustainability ranking • - Dow Jones Sustainability Index (Global CSR presenting the business case at the 1st Diversity & Human Rights meeting)

  24. Align ourselves with Hitachi’s Global CSR strategy Support Hitachi in becoming an advanced global CSR company Evaluation & visibility • Group-wide efforts to help resolve issues in society Implementation • Evaluate implementation of ‘tools’ using assessment methods; revise and improve • Incorporate CSR into BG business strategies Creation of building blocks • Roll-out ‘tools’ to Business Groups • Establish impact-assessment methods • Create ‘tools’ and mutual understanding with Business Groups • Internal awareness-raising Scene-setting • Involve & Participate • Sustained and trusted partnerships with stakeholders • Evaluate stakeholder engagement • Internal evaluation (survey) • Identify focus areas: Environment, Diversity and Human Rights • Background study • Create Europe-wide Business Group network • Explain • Active stakeholder engagement (joint conferences, partnerships) • Inform • Initiate dialogue with external stakeholders (SRI agencies, NGOs) FY 2010 FY 2012 FY 2011 FY 2008 FY 2009 Five-Year Road Map Become a company committed to addressing fundamental global issues in society through innovation (Incorporate CSR into Hitachi’s core business strategy) Internal External Collaboration with CSR Europe and UN Global Compact

  25. Call For Action We Need Your Support!

  26. How You can Help There is a strong commitment to CSR at the corporate level (Hitachi Ltd. and regional HQs). What we now need is Business Groups’ support. Hitachi is a vast company – the only way to realise our CSR goals is by utilising our “truly collective strengths”. Ways to support • Spread awareness and understanding in your Business Group • Explain the project to top management and gain their support • Support your Business Group’s CSR representative (see list attached) • Assist Corporate CSR Team in developing the Diversity & Human Rights Tool Package • Attend CSR Working Group meetings • Attend CSR Europe and UN Global Compact meetings with Corporate • CSR Team “Think Global, Act Local” – Kofi Annan

  27. Thank you!

  28. Bringing CSR to the Next Level EU Hitachi Science & Technology Forum Update Hitachi European Conference9th July 2009Stephane Dupuis (HIBRU)

  29. EU Hitachi Science & Technology Forum Update • For 11 years, EU Hitachi Science & Technology Forum has been a platform to discuss and assess impact of technology on European Society • From now on, every 2 years  to have deeper discussions on theme, to reinforce networking opportunities • Hitachi Group Companies in Europe involved in selecting theme, designing agenda (HDS, HPE, ARG, Rail Group are already involved) • Responsibility: Hitachi Ltd.  Hitachi Europe • 2010 Forum • Date: 7-8 May 2010 • Location: Brussels • Theme : Sustainable Usage of • Energy

  30. Dialogue Workshops: Reinforce Networking • Between S&T Forum : Dialogue Workshops • Goals: • To prepare S&T Forum; To disseminate results • Possibility for HGCEs to seize networking opportunities • Where: in countries with significant Hitachi presence • Form: small conference and debate followed by networking, flexible • Theme: related to the Forum 1st Dialogue Workshop • La maison de la culture du Japon à Paris • Sept. 24, 2009 – 15:00 – 19:30 • “Energy Efficiency, a driver for innovation?” • Updated Agenda • Forum website: www.hitachiforum.eu • HIBRU Intranet: http://hibru.hiweb.hitachi.co.jp/

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