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 Evaluation by Outside Organization

Social Issues Attributable to JSR Group's Corporate Activity Labor Environment

FY :
Fiscal Year means the year starting April 1st.
For example, FY2017 means April 1, 2017 - March 31, 2018

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  1. Philosophy
    (1) Fundamental Human Resource Philosophy
    (2) Course of Action: 4C
    (3) Human Resource Development Philosophy
    (4) Work-Life Management Philosophy
    (5) Philosophy for Physical and Mental Health
    (6) Workers' Union Policies
  2. Human Resources Development
    (1) Mechanisms and Specific Measures Relating to HR Development
    (2) Utilization of Training Centers
  3. Work-Life Management
    (1) Work-Style Innovation
    (2) Work Hours Management and Overtime Reduction Initiatives
    (3) Flexible Working Style Support Benefit
    (4) JSR Original Support Benefits
    (5) Utilization of Work-Life Balance benefits and JSR Original Benefits
  4. Employees Healthy Mind and Body
    (1) Health and Fitness: JSR Health Promotion
    (2) Physical Health Assistance
    (3) Mental Health Assistance
  5. JSR Workers' Union Activities
    (1) Members of the JSR Workers' Union
    (2) Communication between JSR and the JSR Workers' Union
    (3) Communication between the JSR Workers' Union and union members

1. Philosophy

(1) Fundamental Human Resource Philosophy

JSR Group drives its organization and personnel forward based upon the following measures:

  • (1) Develop mechanisms and a corporate culture with a healthy balance of 'Freedom' and 'Discipline,' guided by the Course of Action's 4Cs to enable managers and junior staff to grow together, help all employees accurately perceive and solve issues in order to foster a JSR that not only maintains its organizational capacity, but ensures its future growth.
  • (2) Promote the globalization of JSR corporation employees while developing a globalized workforce within JSR Group as well as train and manage the Group's human resources on a global level.
  • (3) Generate synergies which take full advantage of the increasing range of diversity (in terms of nationality, culture, gender, values, etc.) throughout JSR Group's vast human resource pool.

(2) Course of Action: 4C

Course of Action: 4C

Challenge

All employees of JSR Group should share a common global focus and desire to succeed. Employees should feel confident to autonomously take on new challenges, and learn from success while viewing setbacks as opportunities for growth and improvement.

Communication

All employees of JSR Group should base their actions on the common fundamental values of JSR Group, strive for organizational transparency, and maintain open, direct communication as the best means of sharing values and achieving common goals.

Collaboration

All employees of JSR Group will work together in the spirit of cooperation, valuing common, corporate goals over internal or departmental barriers. Employees will also be encouraged to actively collaborate with external resources and to not be bound by conventional ideas.

Cultivation

All employees of JSR group will be supported by a work environment that provides opportunities for, and encourages bi-directional communication between managers and subordinates in order for them to develop together as individuals and members of productive, supportive teams.

(3) Human Resource Development Philosophy

We are working on human resource development with the understanding that it is the greatest priority for achieving sustainable, long-term corporate growth. In particular, we are promoting human resource development in order to strengthen our organizational capacity by implementing the Course of Action "The 4Cs" - "Challenge," "Communication," "Collaboration," and "Cultivation" - of our Course of Action at a higher level, and with focus on "skill/know-how" and "awareness/motivation."
Human Resources = Skill and Know-How x MotivationAs a key goal, we will also strengthen our employees' international communication abilities.

(1) Human Resource Development Policy

  • 1) Respect each employee's desire for personal growth and provide adequate support for employees who take the initiative to raise their skills and develop their careers.
  • 2) Based on the idea that the development of employee skills is the foundation of a company, make "growth through work" a primary consideration and, from a long-term perspective, conduct systematic, planned, and continuous training at all group companies to support this.

(2) Types of Personnel Sought by JSR

All Employees
  • 1) Professionals who are competitive on a global level in all areas of their responsibility.
  • 2) Individuals who are willing to take on new challenges and who respond flexibly to changes in the environment, supporting innovation and advancement without settling for the status quo.
  • 3) Team players with high ethical standards who emphasize communication, collaboration, cultivation, and taking on challenges.
Management
  • 4) Supervisors who can delegate work and responsibilities to their junior staff while also leading by example, always mindful of organizational management and human resource development.
  • 5) Leaders who effectively oversee the achievement of organizational goals and can also lead reforms.

(4) Work-Life Management Philosophy

JSR is actively promoting its Work-Life Management initiative. Employees are encouraged to not only develop work-related skills, but to also actively participate in social, and personal activities (e.g., social and community groups, family, volunteer activities, self-development, and hobbies). JSR believes that by encouraging our employees to become well-rounded individuals, and by finding a personal sense of self-fulfillment and satisfaction that they will then be able to bring that energy into their work.
JSR encourages all of our employees to closely manage their personal time and maintain a balanced work schedule. We are also working on implementing various systems that support flexible work styles, with special consideration for childbirth, childcare and family-nursing needs.
Work-life management is vital in the implementation of diversity management, because in order to create an organization with a diverse workforce, we must also promote a corporate culture that is open to diverse values and work styles.

(5) Philosophy for Physical and Mental Health

JSR feels that a healthy mind and body are extremely important for employees and their families to live happy lives. We also feel that they are imperative in the creation of a productive and vibrant workplace. Because of this, we have adopted various measures to help our employees work in good health, both mentally and physically.

(6) Workers' Union Policies

With the search for affluence as its guiding principle, the JSR Workers' Union works to:
1) Negotiate wages
2) Improve workplace environments
3) Improve welfare
4) Publicize leisure, public relations, and volunteer activities
5) Promote union activities

2. Human Resources Development

(1) Mechanisms and Specific Measures Relating to HR Development

  • Continue to implement programs to realize early development of the leaders of tomorrow through the Next Leaders Development Committee
  • Implement OJT and Off-JT training with a greater emphasis on motivation, a critical ingredient for the development of employee skills and knowledge
  • Enhance language and cultural programs in international communication such as intensive language courses and overseas training in China
  • Continue and expand training to support the passing on of technological expertise and development of manufacturing skills common to all Group plants
  • Continuation of specialized skill training for young employees
  • Provide training programs with common content between Group companies

1) Various Training Programs

JSR conducts a variety of training programs to raise the skills of its employees.
In the FY2017, the total annual training time per JSR employee was 16.8 hours.
This total was calculated by including technology and skill training, employee rank-based training, and other training organized by human resources departments. It therefore does not include hours spent in education provided independently by departments or external education. Additionally, it does not include internet-based training hours.

Training Programs

2) Career Development Program

We have established the Career Development Program (CDP) to work in conjunction with other training programs in the development of human resources and the next generation of JSR.
With CDP, recent graduates will work temporarily in different departments for their first few years as part of their development.
We believe that this kind of rotation forms the basis of human resources development. Since first introduced in 1988, we have continued to improve and refine this method of training. Each employee must work in at least three different departments during their first 10 years of employment. This program produces highly capable employees that have excellent efficiency and inter-departmental communication skills due to their understanding and awareness of the relationships between upstream and downstream processes.
CDP Committee members individually interview employees that will enter CDP before forming individual rotation plans at a general CDP meeting. The Human Resources Department runs the CDP Committee, and each Division Director is a committee member.

(2) Utilization of Training Centers

Making the best use of the training centers we have established near our plants to support the continuing education of our employees, we focus on further refining our strengths in technology and human resources by passing on technical skills at manufacturing sites and expanding employee education programs.

  • Yokkaichi Training Center

    Yokkaichi Training Center

  • Chiba Training Center

    Chiba Training Center

  • Kashima Training Center

    Kashima Training Center

  • Miniature Plant in Yokkaichi Training Center

    Miniature Plant in
    Yokkaichi Training Center

  • Head Office Training Center (JSR Roppongi Club)

    Head Office Training Center
    (JSR Roppongi Club)

3. Work-Life Management

(1) Work-Style Innovation

At JSR, we are focused on work-style innovation with the goal of realizing sustainable growth for both the company and our employees.
In promoting innovation-oriented activities, we will analyze factors in the workload of each department and then formulate and execute concrete measures to reduce work and alleviate workloads based on prioritization so that each employee can approach it with problem awareness. Management is demonstrating its commitment to these activities by, for example, establishing opportunities for reporting by assigned officer countermeasures proposed by each department.
Furthermore, we see three main approaches to changing work style: work place, work tools, and work time. Given this, we are implementing the "free address" system in some areas of our Head Office and Yokkaichi Plant. We are also publicizing JSR's fundamental rules on meetings and e-mail, encouraging the use of "no overtime days" at all major business locations, and encouraging the taking of paid holidays on workdays sandwiched between national holidays and in combination with three-day weekends.

A "Work-Style Reexamination Project"

For eight months that began in July 2017 and ended in February 2018, four teams selected from within JSR joined a work-style reexamination project organized by Work Life Balance Inc. The teams began with in-depth discussions on their objectives; specifically, what their essential mission is, what they want to become, and what they want to do with the time that is produced. They then moved to actual reexamination, where they gave continuous attention to the visualization and standardization of operations while acquiring know-how and methods from consultants. The project's results were presented to the President and other members of management through a final report session that was held in February 2018. Additionally, seminars for managers were held in parallel with the teams' activities for the purpose of broadly sharing know-how acquired through the project with other departments.
We plan to develop our approaches to work-style innovation in FY2018 and beyond.

Work-Style Reexamination Project

(2) Work Hours Management and Overtime Reduction Initiatives

The total number of working hours per JSR employee in FY2017 was 1,966 hours. This includes, on average, 215 hours of overtime per employee, per year. In FY2004, we implemented an electronic time and attendance system to accurately record working hours. Implementing this system has enhanced the efficiency and accuracy of time and attendance reporting within JSR. It permits the keeping of objective time records that are based on entry and exit times at offices and plants and computer log-in and log-off times in addition to employees' self-reported work hours and holiday management. It also allows managers to quickly verify their employees' working hours.
The system is also equipped with a support function whereby employees who exceed a certain number of work hours and their supervisors are notified of this fact via computer screen messages and system warnings. We are working on ways to foster a more efficient and transparent work culture by internally disclosing each department's overtime hours.

(3) Flexible Working Style Support Benefits

While life is a series of major events, child care and long-term nursing care have become increasingly prominent. Because of this, JSR is working to create an environment that enables its employees to balance work and caretaking needs. In an effort to increase awareness of the multitude of support structures, JSR distributes a guidebook that details the various internal and external support benefits and policies available to employees. By using these resources, JSR helps employees balance their responsibilities at work and at home.

JSR's Flexible Working Style Support Benefits

Life Stage Available Support Description
Prenatal
(Fertility treatment, prenatal care etc.)
- Shortened working hours During pregnancy, employees may reduce their working hours up to two hours per day.
Employees engaged in fertility treatments can reduce their working hours by up to four hours per day, or up to 44 hours per month.
- Work from home During pregnancy, employees are able to work from home one day per week.
Postpartum - Maternity leave (prenatal & postpartum )* Employees can take maternity leave starting six weeks before, and extending eight weeks after childbirth.
- Special paid paternity leave Male employees can take four days of special paid paternity leave anytime from one week prior to two weeks after the birth of their child.
- Extended childcare leave* Employees are able to take an extended leave of absence until their child turns 18 months of age.
- Extended childcare leave counseling Upon request by employees taking extended childcare leave, counseling sessions between the employee and their supervisor are held. In these sessions they discuss and aim to resolve any worries or issues that could hinder a smooth transition back to working life.
Balancing work and childcare - Shortened working hours Employees with non-working spouses can shorten their working hours until the child is three years of age. Additionally, employees with working spouses can reduce their working times until the child is in their third year of elementary school.
- Work from home Employees with working spouses may work from home one day per week until their child finishes elementary school.
- Family-care leave Employees can take up to ten days of leave in half-day units per year to provide nursing care for family member's that live in the same household. Uses include, accompanying family members to the hospital, medical examinations, vaccinations etc.
Balancing work and nursing care - Shortened working hours Employees providing nursing-care for family members can reduce their working hours by up to four hours per day, or up to 44 hours per month.
- Work from home Employees providing nursing-care for family members are able to work from home one day per week.
- Family-care leave Employees can take up to ten days of leave in half-day units per year to provide nursing care for family members that live in the same household. Uses include, accompanying family members to the hospital, medical examinations, vaccinations etc.
- Nursing-care leave Employees providing nursing-care for family members can take up to 20 days of leave in half-day units annually.
- Extended nursing-care leave* Employees providing care for family members can take up to 24 months of extended nursing-care leave.
Extended leave can be broken down into as many as three periods for up to two years.

* Per employee request, mobile devices with remote access to the company network are provided under these benefits.

JSR also provides a discretionary labor system for employees in R&D, as well as a "no-core" flextime labor system for its non-shift based employees. Employees can take up to five days of paid leave per year as a part of our paid volunteer leave system. This allows employees to participate in social contribution activities that occur during working hours.

Next Generation Accreditation Mark Kurumin

Next Generation Accreditation Mark "Kurumin"

JSR and JSR Micro Kyushu are Accredited with the "Kurumin" Next-Generation Mark

In August 2007 and April 2012, JSR received the Next Generation Mark accreditation (nicknamed "Kurumin") issued by the Minister of Health, Labor and Welfare. Kurumin designates enterprises that provide superb parenting support.
JSR Micro Kyushu also received the mark in May 2017.

(4) JSR Original Support Benefits

In addition to compensation benefits available during paid leave periods via health and workers compensation insurance, JSR employees are provided with the following original benefits. These benefits aim to aid employees in maintaining a healthy work-life balance.

1) Childbirth Lump-Sum Allowance

Women enrolled in JSR's health insurance program are eligible to receive a 100,000 yen per child Childbirth Lump-Sum allowance in addition to the government mandated childbirth allowance.

2) Extended Childcare Leave Allowance

Employees on extended childcare leave are eligible to receive their base salary with an additional 50% bonus for the first five days. This allowance is funded via the JSR Mutual Aid Association.

3) Post Childcare Leave Reinstatement Allowance

For employees who have returned back to work for a continues six months following maternity leave or extended childcare leave (of at least one month) are eligible to receive an allowance of 200,000 yen per child. This allowance is funded by the JSR Mutual Aid Association for the purpose of recognizing employees past service, and continued dedication.

4) Daycare Allowance

In households where both parents work, employees are reimbursed half the cost of daycare services that are required on working days. Costs are reimbursed via the JSR Mutual Aid Association with an annual limit of 400,000 yen per eligible employee.

(5) Utilization of Work-Life Balance benefits and JSR Original Benefits

Utilization of
Work-Life Balance Benefits
FY
2011
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
FY
2017
Remarks
Fertility treatments Shortened working hours - - 0 0 0 0 1 Established in FY2013
Childbirth Childbirth leave* 25 23 14 15 20 23 21  
Extended childcare leave* Female 24 22 15 18 20 19 24  
Male 4 3 6 2 5 11 41  
Total 28 25 21 20 25 30 65  
Extended childcare leave counseling 14 19 17 13 12 14 13  
Balancing work and childcare Shortened working hours
(Includes prenatal employees)
67 73 79 77 81 87 91  
Work from home
(Includes prenatal employees)
9 9 12 11 10 10 9  
Operating Income
(consolidated)
Shortened working hours 2 1 0 3 4 2 3  
Work from home 3 3 0 0 2 1 1  
Nursing-care leave 4 1 2 1 6 3 8  
Extended nursing-care leave* 0 0 0 0 1 1 0  
Other Provision of mobile devices with remote access to the company network 9 7 4 3 2 4 13  
Discretionary labor system 446 464 104 107 103 107 108 Number of employees at the start of each FY. (April 1st)
Special volunteer leave
(The value in parenthesis represents the total number of leave days taken)
134
(470days)
3
(8days)
4
(10days)
3
(5days)
4
(11days)
3
(7days)
0
( - )
In FY2011, major volunteering efforts were taken for earthquake disaster recovery.

* Per employee request, mobile devices with remote access to the company network are provided under these benefits.

Original Benefits FY
2011
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
FY
2017
Extended Childcare Leave Allowance27272118252667
Post Childcare Leave Reinstatement Allowance10191923151916
Daycare Allowance3562567

4. Employees Healthy Mind and Body

(1) Health and Fitness: JSR Health Promotion

JSR will advance "JSR Health Promotion" as an activity to support our work-style innovation activities and promote health and fitness among our employees, who are the foundation of organizational activity. Incorporating two approaches in the management of employees' health—a "high-risk approach" (i.e., individual attention when an employee is ill) and a "population approach" (i.e., risk reduction/prevention for all)—we will address specific issues that include prevention of lifestyle-related diseases, ensuring that employees receive health checkups and follow-ups, and mental health. At the same time, JSR Health Insurance Society will introduce a web portal site as a tool to support efforts to maintain and promote employees' health. Looking forward, we will also work to strengthen ICT in employees' health management.

JSR was Recognized under the 2018 Certified Health and Productivity Management Organization Recognition Program.

JSR was recognized as one of the "White 500" enterprises under the 2018 Certified Health and Productivity Management Organization Recognition Program (large enterprise category), a scheme run by the Ministry of Economy, Trade and Industry (METI) and Nippon Kenko Kaigi. This designation, which we also received last year, acknowledges our standing as a listed company that practices outstanding health and productivity management.
Moreover, two members of JSR Group—JSR Micro Kyushu Co., Ltd. and Japan Coloring Co., Ltd.—were recognized under the Certified Health and Productivity Management Organization Recognition Program (SME category). Both companies were similarly recognized last year.
The "Certified Health and Productivity Management Organization Recognition Program" examines large enterprises, SMEs and other organizations engaging in initiatives for overcoming health-related challenges in regional communities or for promoting health-conscious activities led by the Nippon Kenko Kaigi, and recognizes those enterprises engaging in particularly outstanding efforts for health and productivity management.
Seeing the health and fitness of each and every employee as vital to sustainable corporate growth, JSR Group will continue regarding employee health as a management issue and take proactive steps in executing measures to maintain and promote health and reexamining how our employees work.

  • Health and Productivity White 500
  • Health and Productivity
  • Health and Productivity White 500
  • Health and Productivity
  • Health and Productivity

* The "Certified Health and Productivity Management Organization Recognition Program" examines large enterprises, SMEs and other organizations engaging in initiatives for overcoming health-related challenges in regional communities or for promoting health-conscious activities led by the Nippon Kenko Kaigi, and recognizes outstanding enterprises engaging in efforts for health and productivity management.

(2) Physical Health Assistance

JSR supports its employee's physical health by providing general physical screenings, special examinations required by law, such as chemicals examinations and VDT screenings, lifestyle disease checkups, and gynecologic cancer examinations. Subsidies are also provided to employees who receive complete medical screenings and brain scans such as MRIs. Since 2008, the JSR Health Insurance Society has promoted lifestyle disease prevention screenings (diabetes, high blood pressure, and obesity) paired with health guidance and counseling to achieve promising results. Moreover, we actively work to ensure employees' health through various means, among them providing education on ways to prevent lifestyle-related diseases through the industrial health staffs of our business sites, individual counseling at health exams, and safety and health advice through workplace visits.
Additionally, in addition to providing its own sports facilities as well as memberships in sports clubs through welfare service contracts, each JSR business site hosts sporting events, such as softball games, and bowling tournaments to improve health through physical activity and facilitate communication among employees. These programs have received positive feedback from employees who do not normally have the opportunity to participate in physical activities.

Examples of JSR sports facilities

  • Health management center (exterior) and training room, Yokkaichi Plant

    Health management center (exterior) and training room, Yokkaichi Plant

  • JSR athletic ground next to the Kashima Plant

    JSR athletic ground next to the Kashima Plant

The JSR Health Insurance Society organized a "Head Office Exercise Support Seminar: Health Exercises." The seminar was held with the aim of ensuring that more employees are healthy and vibrant by supporting fitness in not only our plants but also our management and sales departments. Health and exercise instructors of the JSR Health Insurance Society visited JSR's Head Office and Group companies to provide instruction on "refresh stretching" that prevents stiff shoulders and lower back pain. Many employees participated even though the instruction was provided during business hours. The results of a post-seminar questionnaire survey indicated that participants were extremely satisfied, as 90% of respondents said they found the stretching helpful. We will continue health-oriented activities for the purpose of "supporting health and fitness" and strive to implement initiatives that promote health and productivity management and help improve employee productivity.

Refresh stretching (JSR Head Office)

Refresh stretching (JSR Head Office)

(3) Mental Health Assistance

JSR has taken measures to improve employee mental health since the issue first began drawing attention. JSR takes a four-point approach in providing mental health support, "Check," "Organizational Analysis," "Consultation," and "Training."
Checks and organizational analysis include a biannual employee mental health JMI Health Survey conducted by JSR since FY1998. The data from these checks is used in a variety of ways. It helps individual employees understand their own mental stress levels. It also helps JSR to understand the stress levels of all employees throughout the organization. Furthermore, it is used in the implementation of various companywide policies. Since FY2012, we have been conducting web-based stress diagnostics throughout the JSR domestic group. Stress diagnostics are conducted annually via our e-Stress Diagnosis System.
Consultation includes the establishment of a program to provide counseling for employees at a location of their choosing. Counseling is conducted through a third-party professional, Human Frontier Counseling. This program has been established at each of the JSR domestic group companies as a part of our mental-health counseling support efforts. In efforts to provide stable and quality mental health counseling, occupational health professionals are present at all of JSR Corporation's offices and plants.
Training includes a variety of mental health care programs, such as self-care and line-care that properly reflects each level of JSR's organizational hierarchy.

5. JSR Workers' Union Activities

(1) Members of the JSR Workers' Union

There are 2,552 members of the workers' union as of April 1, 2018. Group companies have also established their own workers' unions.

(2) Communication between JSR and the JSR Workers' Union

JSR and the JSR Workers' Union have entered a labor agreement based on workers' union regulations.
The president and directors in charge of individual business segments have regular discussions with the workers' union to exchange opinions and conduct QA sessions regarding the working environment, business conditions, major company policies, and workers' union activities. The JSR Workers' Union discloses the content of these discussions with union members. Negotiations include labor management councils at the employee- and plant-level, local labor management councils, and Safety and Health Committees to deepen understanding and trust as well as ensure sound labor relations. Continuing from last year, our offices and plants made efforts in FY2017 to create a comfortable work environment, holding frequent discussions on overtime correction as well as the introduction of a system for annual paid leave by the hour and revision of family allowances.

(3) Communication between the JSR Workers' Union and union members

Union members at each plant represent of plant workers' opinions. They also act as a conduit between union leadership and the union members. Workplace discussions and questionnaires are conducted to ensure the ideas and opinions of union members are incorporated into union activities.