Evaluation by Outside Organization

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

1. Philosophy

We, JSR Group, specify our responsibilities to employees within our management policies.

  • To be evaluated and rewarded based on fair standards
  • Continuous opportunities to grow by challenging themselves
  • Acceptance of the diversity of fellow colleagues and to be provided a place where all employees can work together as a team

2. Advancement Structure

We advance initiatives to maintain appropriate labor environments as an activity guideline of the Corporate Ethics Committee.

3. Organization and Personnel

(1) Philosophy

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

  • - 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.
  • - 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.
  • - 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) Codes of Conduct

  • - We shall ensure the fair treatment of employees, based on each person’s tasks, roles, and level of commitment.
  • - We shall respect the diversity of our workforce and make efforts to create a workplace environment that enables every employee to make the best use of their abilities and to find a rewarding sense of satisfaction in their work.
  • - We shall respect the human rights and diverse characteristics of all individuals, and shall not discriminate against gender, age, nationality, race, ethnic group, origin, religion, beliefs, social status, physical disability, sexual orientation, or other relevant conditions when determining employment status and/or working conditions.
  • - We shall not force religion and/or belief on others.
  • - We shall provide a workplace free from sexual harassment and any harassment arising from positions of power. In addition, we will not engage in or make verbal comments with sexual connotations that will make counterparts feel uncomfortable.
  • - In the event that a staff member reports the violation or possible violation of the law and/or the Principles of Corporate Ethics to his/her superiors and/or internal/external hotline, we shall fully protect the said staff member’s identity and protect him or her from unfavorable treatment.

(3) Rank System

We have established an ability-based grade system that sets capability grades that correspond to employees’ abilities. Moreover, for employees of higher ranks, we also apply a job rank system that establishes ranks that correspond to given duties (i.e., responsibilities in the organization and performance responsibilities).

(4) Assessment System

We conduct assessments by employing two systems. One is an “ability assessment system” that establishes occupational group-specific behavioral standards specifying the specific behavioral characteristics of abilities required for each capability grade in individual occupational categories and then assesses demonstrated abilities based on those standards. And the other is a “objective management system” that assesses the degree to which a person has achieved predetermined objectives.

4.Human Resource Development

(1) 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.

(2) 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

(3) Training Programs

JSR conducts a variety of training programs to raise the skills of its employees.
In the FY2018, the total annual training time per JSR employee was 14.7 hours.

This total was calculated by including technology and skill training, stratified training programs, 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

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)

(4) Career Development Program (CDP)

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.

5. Work-Life Management

(1) 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.

(2) Codes of Conduct

We provide a work environment that facilitates flexible “work-life management” for employees, and strive to improve both productivity and employee satisfaction.

(3) 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 advancing 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.

Holding of a Seminar on Work-Style Innovation and Corporate Culture Reform

On March 4, 2019, we organized a lecture presentation by Mr. Piotr Feliks Grzywacz, a person who has been involved in human resources development and organizational development for many years at Google and Morgan Stanley.
Mr. Grzywacz has written numerous books, among them Fast Leadership and Why Googlers Deliver High Output Without Fatigue? During the seminar, he spoke about future work styles and approaches to organizational structure while giving participants various projects to tackle.

Holding of a Seminar on Work-Style Innovation and Corporate Culture Reform

(4) Work Hours Management and Overtime Reduction Initiatives

The total number of working hours per JSR employee in FY2018 was 1,969 hours. This includes, on average, 220 hours of overtime per employee, per year. We introduced 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.

(5) Flexible Working Style Support Benefits

While life is a series of major events, childcare 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.

We are taking various initiatives to support employees’ diverse working styles from FY2019. They include changing the system to allow many employees to work from home, not just those who do so for child-rearing and nursing care, by relaxing work-from-home requirements; starting a by-the-hour annual paid leave system that allows employees to take their annual paid leave in one-hour increments; extending the time employees can work shortened hours for child-rearing and nursing care; and adding more annual paid holidays for young employees (14 days in the first year of employment).

JSR's Flexible Working Style Support Benefits
Life Stage Available Support Description
(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 Employees can work from home one day per week, even in cases not related to child-rearing or nursing care.
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 sixth year of elementary school.
- Work from home Employees can work from home one day per week, even in cases not related to child-rearing or nursing care.
- 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 can work from home one day per week, even in cases not related to child-rearing or nursing care.
- 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.

(6) 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.

  • - 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.
  • - 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.
  • - 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.
  • - 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.

6. Employees Healthy Mind and Body

(1) 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.

(2) Codes of Conduct

We shall strive to maintain and improve safety and hygiene levels for all relevant parties, based on our belief that “safety is of utmost importance to everyone working in manufacturing and the bedrock of business activities.” Additionally, we shall pay sufficient attention to the maintenance of the mental and physical health of ourselves and those we work with.

(3) 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 has introduced a portal site called “KenCoM” as a tool to support efforts to maintain and promote employees’ health. Through a point system and events, the society provides services that support health for the purpose of encouraging employees to have fun as they watch their health. We will continue working to strengthen our use of ICT in employees' health management.

JSR was Recognized under the 2019 Certified Health and Productivity Management Organization Recognition Program.

JSR was recognized for the third year in a row as one of the "White 500" enterprises under the 2019 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, five members of JSR Group—JSR Micro Kyushu Co., Ltd.; Japan Coloring Co., Ltd.; Elastomix Co., Ltd; JSR Logistics & Customer Center Co., Ltd.; and JSR Health Insurance Society—were recognized under the Certified Health and Productivity Management Organization Recognition Program for 2019 (SME category).

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.

JSR was Recognized under the 2019 Certified Health and Productivity Management Organization Recognition Program

* 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.

(4) 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 an "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, sales, and development departments. Health and exercise instructors with the JSR Health Insurance Society visited JSR’s Head Office and Group companies as well as the Nagoya Branch, Tsukuba Research Laboratories, Group companies, and other establishments in various regions. They provided instruction on “refresh stretching” that prevents stiff shoulders and lower back pain, chair yoga, fall-prevention exercises, and exercises to prevent locomotive syndrome to 1,559 employees. 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 90.7% of respondents said they found the Exercise Support Seminar and health exercises 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.

Chair yoga (JSR Head Office)

Chair yoga (JSR Head Office)

(5) 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.

7. JSR Workers' Union

(1) Thinking vis-à-vis Workers’ Union Activities

We strive to maintain a relationship with the JSR Workers’ Union whereby we can routinely conduct constructive dialogues through regular labor-management councils, meetings concerning the revision of labor agreements, and other opportunities. We also work with the JSR Workers’ Union to build better workplace environments with attention to union concerns—namely, “wage policy,” “labor environment policy,” “welfare policy,” “leisure time, public relations, and volunteerism policy,” and “organizational policy.”

(2) Codes of Conduct

We will abide by national and international labor codes and respect workers’ right of association and right for collective negotiation in the realm of basic labor rights.

(3) 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. In FY2018, we worked to build a more comfortable environment through repeated discussions on an extension of the time employees can work shortened hours for child-rearing and nursing care and additional annual paid holidays for young employees.

(4) Dialogue between the Workers’ Union and its Members

Union members at each plant represent 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.

(5) JSR Workers’ Union Membership