Basic Policies on Human Resources Programs

The JSR Group has adopted the following two policies as models for its organization and personnel systems and implements a variety of programs in accordance with these policies.

• Adequate organizational capabilities to support various business strategies; and
• Work environments where each employee can feel they are performing meaningful work, experience job satisfaction, and perform high-quality work with enthusiasm.

Based on these policies, the JSR Group is focusing on creating work environments where diverse personnel can work with enthusiasm.

Recruitment and Promotion of Diverse Human Resources

The JSR Group engages in a variety of business activities around the world. We believe that making the most of diverse human resources is extremely important to the implementation of our wide-ranging business strategies.
From FY2011 (April 1, 2010 to March 31, 2011), work-life balance (work-life management) and the encouragement of diversity have been put in place as management strategies, and we are working to promote management that focuses on the diversity of human resources and respect for and application of the variety of values arising from this diversity.

Basic Data on JSR’s Employees as of March 31, 2010

		Men	Women	Total
No. of employees		2,789	397	3,186
No. of new employees hired	Recent graduates	130	9	139
	Mid-career employees	27	11	38
Average No. of years of continuous employment		16.4	12.0	15.8
Separation rate1		4.1％	7.9％	4.7％

1.  Percentage of employees who have left JSR within three years of hiring in FY2006 through FY2008

Active Support for Female Employees

As part of our efforts to actively support female employees and to facilitate transfers from clerical positions to career-track positions, from FY2008 JSR has significantly reduced the number of years of continuous employment necessary to apply for such transfers and has encouraged motivated persons to transfer to career-track positions.
Since FY2009, 35 employees have transferred to career-track positions, and there are now 135 female employees in career-track positions (as of April 1, 2010), amounting to approximately one-third of all female employees.
From FY2011, as part of our promotion of diversity, active support for female employees has been put in place as a management task and incorporated into our mid-term business plan.
The mid-term business plan sets out not only qualitative tasks but also quantitative tasks (interim targets rather than final targets) and, to express the strong determination of management and secure the understanding and cooperation of all employees, it sets numerical targets for the percentages of women hired on college graduation and women in management.
Specific measures to promote diversity include the holding of company-wide seminars for learning about the promotion of diversity, which are attended by both management and female employees, and working to create a climate of reform that is not limited to female employees but makes the most of, the diversity of human resources.

Numerical Targets for the Promotion of Diversity

Percentages of female employees hired	2011	College graduate engineering positions:  College graduate administrative positions:	15-20% 40-50%
Percentage of women in managerial positions	2015	5％

Number of Female Employees Transferring from Clerical Positions to Career-track Positions

FY	2009	2010	2011	Total
No. of people	9	13	13	35

Career Re-entry System

In April 2008, JSR instituted a program that allows former employees who left JSR due to marriage, childbirth, nursing care responsibilities, transfer of a spouse, or other reason to register with the company for rehiring when additional personnel are needed.

	No. of people registered	No. of people actually rehired
FY2009	7	2
FY2010	8	0

Re-employment Program (re-employment of retirees)

This is a program that allows employees who have reached the mandatory retirement age to continue employment. Prior to retirement, employees complete a survey concerning their desire to continue employment, and those employees who wish to continue working and whose personnel evaluation immediately prior to retirement is at a certain level or higher, are rehired.

FY	2008	2009	2010
No. of people	35	58	36

Employment of People with Disabilities

JSR’s employment rate for people with disabilities was 1.8% (the statutory employment rate) in FY2009, but this figure fell to 1.78% in FY2010. As JSR is a chemical industry manufacturer, much of the work in research laboratories and manufacturing sites is dangerous, requiring the handling of hazardous materials and working with rotating equipment, which limits the involvement of people with disabilities. However, we are continuing our endeavors to employ people with disabilities.

Compliance with the Worker Dispatching Law (Temporary Workers Law)

In response to the notice of “Strict Response to Unlawful Assignments under the 26 Specialized Occupations to Evade Time Restrictions” issued on February 8, 2010 by the Demand and Supply Adjustment Division of the Employment Security Bureau, the nature of the work in the initial and subsequent dispatch positions of general temporary workers at JSR was checked, and it was confirmed that there are no problems with the contents of the contracts.

Work-Life Balance (Work-Life Management)

JSR supports the maintenance of a balance between work and personal life (work-life management). We have introduced a variety of support systems, including maternity, childcare and nursing care leave, to provide balanced, efficient and flexible working styles aimed at supporting all our employees, not just those who have given birth or have childcare or nursing care responsibilities, to satisfactorily balance their work with their various life events and values.
The mid-term business plan clearly describes JSR’s support for work-life balance (work-life management) and diversity, and the JSR Group Principles of Corporate Ethics sets out our policies on these matters.² Some of JSR's measures for supporting work-life balance are described below.

2.  JSR Group Principles of Corporate Ethics, Conduct Rule 4(2)
We will provide a work environment that helps employees realize a flexible "work-life balance" and strive to improve both productivity and employee satisfaction

Support for Flexible Working Styles

System	Outline
Flex-time	JSR eliminated core (mandatory) work times in 1996. This applies to all employees except those working on shifts.
Flexible working hours	Applies to employees in research divisions. As of April 2010, a total of 436 employees were taking advantage of this program.
Leave for volunteer activities (formulated in 2009)	Employees can take up to five paid vacation days per year when necessary for social contribution activities. To date, two employees have between them taken a total of eight days leave under this program.
Family-care leave	In FY2010, the scope of family-care leave was extended from infants to family members sharing the same residence. Employees can take up to 10 days of leave annually to provide nursing care and accompany family members to hospital, medical examinations, vaccinations, etc.

Maternity, Child-care and Nursing-care Programs

System	Outline	Result (No. of people)
		FY2008	FY2009	FY2010
Maternity leave(before/after delivery)	Employees can take six weeks of leave prior to childbirth and eight weeks after the birth. The Mutual Aid Association provides 50% of the employee’s base salary for the first five days of leave.	21	23	14
Child-care leave	Employees can take leave until children are 18 months old.	19	26	15
Interviewing employees taking child-care leave	Upon request by employees taking child-care leave, an interview is conducted with the employee's supervisor to eliminate concerns and resolve issues harbored by the employee and JSR as well as to facilitate the return to work.	9	11	12
Shorter working hours	Working hours can be shortened by up to two hours per day. Eligible employees: pregnant employees, employees with children up to three years of age, employees in dual-earner households with a child in or below the third year of elementary school, and employees providing nursing care to a family member.	23	30	40
Working from home	Employees can work from home one day per week. Eligible employees: pregnant employees, employees in dual-earner households with a child of elementary school age or younger and employees providing nursing care to a family member.	6	6	6
Maternity leave re-instatement allowance	Employees who return to work following maternity leave or child-care leave of at least one month receive a grant of 200,000 yen per child following the completion of six months' continuous service.	12	9	22
Baby sitting allowance	Employees are reimbursed half the cost of daycare on working days in cases where both parents work.	2	3	2
Nursing-care leave and extended leave	Up to 20 days of nursing-care leave can be obtained for taking care of a family member, and this may be extended to up to 12 months using extended leave.	3	4	3
Loan of mobile devices capable of accessing the JSR internal network	Employees on maternity leave, child-care leave or nursing-care leave may borrow a mobile device which enables them to access the JSR internal network from a home PC.	10	4	4
Working Parents Guidebook	JSR distributes a guidebook that describes the various internal and external programs that support working parents.

In August 2007, JSR acquired the Next Generation Accreditation Mark (nicknamed "Kurumin") issued by the Minister of Health, Labour and Welfare. This accreditation is granted when an enterprise successfully provides a working environment that helps employees to raise a family, as well as balance work and home needs. The guidelines are in accordance with the "Next Generation Nurturing Support Measures Promotion Law."

Next Generation Accreditation Mark "Kurumin"

Healthy Mind and Body

To support the improvement of employees’ health, JSR carries out twice-yearly general physical examinations, special physical examinations and lifestyle-related disease checkups, as well as supplying corporate sports facilities and fitness club memberships.
JSR has undertaken mental health initiatives since 1998. These include periodic JMI mental health checkups, counseling for employees in a location of their choice from the external agency, Human Frontier Counseling, and the Mental Toughness Orientation Program (MTOP), which allows employees to evaluate their own mental health status once a month using menus suited to themselves. For the prevention of lifestyle-related diseases, metabolic syndrome checkups and individual health guidance for employees who require active support were introduced from FY2008.

Human Resource Development

The JUMP2010 mid-term business plan adopts a vision of a technology- and human resource-centered company striding forward into the future. Based on this vision, JSR is implementing a variety of measures including the adoption of a human resource development policy and clarification of what it considers to be the ideal worker so that each employee can enhance his or her skills and use them to their full potential.

Human Resource Development Policy

1. Respect employees' desire for personal growth and provide adequate support for independent efforts by employees to raise their skills and develop their careers.
2. Based on the idea that the development and support of employee skills is the foundation of a company, make "growth through work" a primary consideration and conduct systematic, regular and continuous training from a long-term perspective in all group companies to support this.

Types of Personnel Sought by JSR

All Employees

1. A professional who is competitive on a global level in all areas of his or her responsibility.

2. An individual who is willing to take on new challenges and who responds flexibly to changes in the environment, supporting innovation and advancement without settling for the status quo.

3. A team player with high ethical standards who emphasizes communication, collaboration and taking on challenges.

Management and Specialists

4. Leaders who take the initiative and set an example for others in performing their work and focus on supporting junior employees.

5. Leaders who effectively oversee the achievement of organizational goals and can lead reforms.

Specific Measures

• Creation of a Next Leaders Development Committee and launch of various development programs for the early development of the leaders of tomorrow.
• Extensive human resource management education to enhance management capabilities.
• Introduction of career development training to raise motivation and the ability to appreciate the positive aspects of work.
• Continuation and expansion of training to support the passing on of technological expertise and training on shared manufacturing skills.
• Introduction of mandatory specialized skill training for young employees.

Various Training Programs

JSR conducts a variety of training programs to raise the skills of its employees.

Establishment of Training Centers

A training center was established in Yokkaichi in FY2007 with the aim of improving the infrastructure for supporting the continued education of employees, and this was followed by two more centers in Chiba and Kashima, respectively, in FY2008. At its training centers, JSR seeks to further refine its strengths in technology and human resources by passing on technical skills at manufacturing sites and expanding employee education programs.

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