Management Report

CSR Management

Governance and CSR Promotion Structure

Corporate Governance Structure

Kuraray considers it is vital and necessary not only to maintain sound relations with our various stakeholders including our shareholders, to assist the improvement of our performance and sustainable growth as a company but also to implement corporate governance to fulfill our responsibility to society. Kuraray in Fiscal 2003 separated supervision and business execution by reinforcing its board of corporate auditors by increasing the number of outside auditors, setting up a management advisory council, shortening the terms of office of directors, introducing an executive officer system and other measures. From Fiscal 2008, outside directors have been elected. These measures contributed to putting corporate governance into effect. In Fiscal 2015, the Basic Policy for Establishment of Internal Control System was amended to strengthen the governance system for Kuraray Group.

CSR Promotion Structure

In 2003, Kuraray set up CSR Committee by integrating Social Environment Committee and In-house Ethics Committee, and bolstered its CSR promotion structure on a Group level. Three committees of experts (Social Responsibility and Economic Subcommittee, Environmental and Industrial. Safety Subcommittee, and Risk Management and Compliance Subcommittee) are organized under CSR Committee. Nine working teams are organized in each committee of experts. These committees of experts and working teams study company-wide policies and targets and propose them to the management. Departments, that are responsible for special issues, constituiting these committees and working teams collaborates with various organizations in Kuraray Group in addressing respective theme in accordance with company-wide CSR policy. We will reorganize the structure and the operation system of the CSR committee in 2017, aiming at the more workable CSR implementing body.

Risk Management

Within the Kuraray Group, the President formulates and conveys a Group policy on risk management to the entire organization each year. This policy consists of two parts, namely, a long-term and continuous “basic policy” embracing overall Group risk management and “annual themes” that are dealt with in each fiscal year in light of social situations and trends of the Kuraray Group and other companies. This system allows flexible and prompt actions to be taken against changes in the risk environment while maintaining the basic approach in responding to risks.

The Kuraray Group’s risk management is characterized by a twotier approach to risk management: “vertical” and “horizontal” risk management. In vertical risk management, the business units, divisions, offices, plants and affiliates identify risks facing their individual organizations, evaluate such risks by themselves and appropriately devise and implement actions and measures to be taken. In horizontal risk management, the corporate staff department evaluates and conducts cross-sectional management of pure risks such as natural disasters and infringement of laws and regulations that cause only negative impacts when such risks take place.

Additionally, critical risks selected from all these risks that need to be managed on the company management level are extracted and actions and measures are taken on them on a priority basis.

Quality Management

Within Kuraray Group, quality management is carried out by implementing quality management systems such as ISO 9001 at each manufacturing site. The divisions have built a mechanism for each of their businesses to supply products that incorporate the requirements of customers. The corporate CSR Division undertakes activities aiming at reinforcing quality management within the entire group.

Among Kuraray’s divisions, the EVAL Division beginning Fiscal 2012 and GENESTAR Division beginning Fiscal 2015 have been continuing their ICS activity aimed at enhancing customer satisfaction such as by undertaking a cross-sectional improvement activity.

As a new initiative, beginning Fiscal 2016, a scheme called “Saiteki Activity(meeting to discuss quality management)” was launched. Under this scheme, the divisions and CSR Division together verify the current statuses of and improvements made in quality management at the divisions. The scheme enables checking of common items to be reinforced with respect to quality management of the entire Kuraray Group, triggering improvement activities involving all the divisions.

As part of this scheme, the seminar aimed at improving the quality of automotive materials was hosted.

In Fiscal 2016, Kuraray Group quality handbook was compiled to share the concepts “quality as contemplated by Kuraray” and “quality is customer satisfaction” based on the company statement of the Kuraray Group. Furthermore, companywide education was launched using this handbook.

Handling of Product Complaints

Within Kuraray Group, information on complaints and claims received from the customers is managed by its divisions, so responses to customers can be promptly made and action is taken swiftly to prevent the recurrence of same flaws. Material complaints and claims are handled in accordance with the “Regulations on Product Liability-related Accident Response and Quality Complaint Report.” In Fiscal 2016, no product recalls or accidents that cause severe damage to health or damage to property such as fire were reported.