F l e x i b i l i t y C h a l l e n g i n g S p i r i t
S i n c e r i t y
2010
SOCIAL
1. Provide quality products and services
Earn the trust and regard of customers by endeavoring to provide quality products and services based on superior technology and by fully respecting and protecting the privacy of personal and customer information.
2. Be open to society at large
Endeavor to communicate with shareholders and the broader community, and actively disclose corporate information.
3. Coordinate and cooperate with the community
Actively contribute to the community as a good corporate citizen in a spirit of coordination and cooperation.
4. Globalize
Endeavor to achieve mutual understanding with people around the world, working from global perspectives and respecting local cultures and customs.
5. Exist in harmony with the global environment
Contribute to the achievement of better living standards and the creation of societies that exist in harmony with the global environment.
6. Maintain proper relations with government and
political authorities
Endeavor to build and maintain sound and proper relationships with government and political authorities.
7. Stance towards antisocial forces
Refuse to associate with any and all elements or organiza-tions that threaten social order and stability, and reject all illegal and improper demands.
8. Respect human rights
Respect all employees and members of the general public as individuals and refrain from any and all discrimination in corporate activities.
9. Provide challenging work environments
Provide employees with attractive, safe and challenging work environments.
10. Comply with laws and ordinances
Comply with all applicable laws and ordinances, endeavor to compete fairly and freely, refrain from illegal business activities, promote sound business practices, and be faithful and sincere in all activities and dealings.
All JFE Group executives and employees will faithfully adhere to the following Standards of Business Conduct in all facets of corporate activities. These standards were created to embody the Corporate Vision of the JFE Group and go hand-in-hand with the Corporate Values.
Senior executives are to take the lead in communicating these standards to employees throughout the group and in creating effective systems and mechanisms to ensure adherence to corporate ethical standards.
Senior executives shall be directly involved both in the resolution and implementation of measures to prevent the recurrence of any violations of these standards. They shall disclose information about violations in a timely and accurate manner both inside and outside the group, shall clarify the authority and accountability involved and shall deal rigorously with offenses.
JFE Group Standards of Business Conduct
The JFE Group—contributing to society
with the world’s most innovative technology
Corporate Values
A Challenging Spirit, Flexibility, Sincerity
Corporate Vision
Corporate Vision, Corporate Values, and
Standards of Business Conduct
F l e x i b i l i t y C h a l l e n g i n g S p i r i t
S i n c e r i t y Corporate Vision, Corporate Values, and
Standards of Business Conduct
Message from Senior Management
Management Structure
Corporate Governance
Basic Policy on Corporate Governance Management / Key Decision Making / Internal Control
CSR Management
CSR System / Major CSR Activities for FY2009 / CSR Audit
Risk Management
Risk Management System / Elimination of Antisocial Forces / Information Security System
Compliance
About Compliance /
Efforts for Raising Compliance Awareness
Relationship with Stakeholders Customers and Clients
Quality Assurance System / Improvement of Customer Satisfaction (CS)
Shareholders and Investors
Basic Policy for Returns to Shareholders / Basic Policy for Information Disclosure /
Communication with Shareholders and Investors
Local Communities
Philanthropic Activities by the JFE 21st Century Foundation / Support for External Organizations / Aid for Disaster Relief / Youth Development Support / Plant Tours
Employees
Application of Human Resources /
Positive, Productive Working Environments / Development of Dynamic Work Environments
Awards and Praise
Third-Party Comments
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2010
SOCIALpossible in furtherance of rapid information disclosure. We conduct plant tours, IR briefings, and other events that emphasize communication in the interest of boosting trans-parency to shareholders and other investors. Further, having established shareholder returns as one of our top priorities, we pursue a policy of actively distributing dividends while also working to ensure the sustainability of the entire Group.
Local Communities
The business activities of the JFE Group, which has large-scale facilities in various locations, benefit from the under-standing of local communities. To give something back to these communities, we have continuously undertaken efforts like supporting university research and other educa-tional activities, and assisting with cultural, social welfare, and disaster response activities. We have also opened our business facilities to local community members.
Employees
The JFE Group understands the importance of creating working environments that allow employees from diverse backgrounds to dynamically exercise their full potential. We, therefore, work to promote hiring and keep strong labor-management relations, actively promote female employees, create work environments that enable and facilitate career development, employ people with disabili-ties, promote better understanding and behavior regard-ing human rights, and strive to maintain workplaces that are safe. At the same time, we work to ensure that the skills that Japan’s manufacturing industries have relied upon are passed on to younger generations and imple-ment small group activities and take other measures to elevate the skills and capabilities of individual employees. The JFE Group, in order to realize its corporate vision of
contributing to society with the world’s most innovative technology, has established its Corporate Values and Standards of Business Conduct, and pursues manage-ment practices aimed at simultaneously promoting our interests and those of society.
In furtherance of those aims, the JFE Group will bring to bear all of its resources in continuously pursuing strict compliance, which is the foundation of public trust, working to solve environmental issues, and ensuring safe operations. At the same time, we will work for the benefit of all stakeholders via business activities based on impartial, fair, and transparent corporate governance.
Customers
We are working to obtain various certifications and implement management system improvements to gain even greater customer satisfaction and trust regarding our products and technologies. In addition, by taking steps like establishing a facility for pursuing product development together with customers, we are working to anticipate customer needs and serve the ultimate purposes of contributing to improvements in competi-tiveness for manufacturers and other customers and broadly advancing society through the provision of high-quality products and services.
Shareholders and Investors
The JFE Group believes it is important to properly provide shareholders and investors with company information in a timely manner. We, therefore, disseminate time-sensitive information through our website and other channels and strive to provide information on our results as early as
Yoshio Ishikawa
Executive Vice President JFE Holdings, Inc.The JFE Group is a business organization consisting of a holding company and five operating companies—JFE Steel, JFE Engineering, Universal Shipbuilding, JFE Urban Development, and Kawasaki Microelectronics.
JFE Holdings stands at the center of the Group’s integrated governance system. The Company func-tions as the head office responsible for group-wide strategic functions, risk management, and accountabil-ity to the public.
Each of the operating companies conducts its business based on an operating system specifically designed for its industry. This allows the companies to be more competitive and profitable.
In the course of fulfilling their respective duties, the holding company and operating companies strive to maximize corporate value for shareholders and other stakeholders.
JFE Holdings introduced two external directors in June 2007 to strengthen governance and enhance the fairness, objectivity, and transparency of management. In addition, the term for directors was shortened from two years to one to better clarify managerial responsibil-ity. The Company’s board of directors, which comprises seven directors, two of whom are external, is respon-sible for the supervision of operational performance and the maintenance and improvement of operational efficiency. The board of auditors, which includes two external auditors, monitors operations to ensure the soundness of the business.
JFE Holdings and each of operating comapanies have adopted a corporate officer system under which decision-making and execution are separated to clarify authority and responsibility and to accelerate execution. (excluding JFE Urban Development).
General Meeting of Shareholders
CSR and Compliance System Headed by
the President
Accounting Auditor
CEO (President)
Management Committee
Internal Auditing
CEO (President)
Accounting Auditor Board of Directors
Corporate Officers Management Committee
Corporate Officers Internal Auditing
JFE Group CSR Council Chair: President
JFE Group Compliance Council
JFE Group Environmental Committee
JFE Group Internal Control Committee
JFE Holdings, Inc.
Board of Directors
7 directors, including 2 external
Arrows indicate lines of authority and reporting. Shaded areas indicate executive organizations. Management Structure and Internal Control
Corporate Auditors
Group Companies (193 consolidated subsidiaries and 41 equity-method affiliates) Operating Companies*2
(5 companies)
*1
Corporate Auditors and Board of Corporate Auditors
4 auditors, including 2 external
*1JFE Holdings auditors concurrently serve as absentee auditors at various operating companies.
*2Management systems of operating companies (based on the model of JFE Steel).
Basic Policy on Corporate Governance
Management
Message from Senior Management
Together with All of Our Stakeholders
Management Structure
Structure of JFE Group Board of Auditors
JFE Steel and its group companies
JFE Engineering and its group companies Subcommittees and working groups (by themes)
Universal Shipbuilding
JFE Urban Development
Kawasaki Microelectronics
General Meeting of JFE Group Auditors hosted by HD and attended by 59 auditors from 65 companies
New auditor training courses and other seminars
Part-time corporate auditors system
7 auditors oversight 27 group companies
tion, research issues, and enhance their understand-ing (refer to the diagram below.) The results of their activities are presented at the General Meeting of JFE Group Auditors and applied by individual Corporate Auditors in audit activities.
Cooperation between Corporate Auditors and Accounting Auditors
The Corporate Auditors hold scheduled and unsched-uled meetings (a total of six during FY2009) with the accounting auditor (Ernst & Young ShinNihon) in which the latter presents its audit plan, updates on audit work, and detailed information on audit results. During these meetings the Corporate Auditors also receive detailed explanations regarding the accounting auditor’s quality management system, explain their own audit plan and other matters to the accounting auditor, and share opinions on various matters with the accounting auditor.
Cooperation between the Corporate Auditors and the Internal Auditing Department
The Corporate Auditors hold scheduled and unsched-uled meetings (a total of five during FY2009) with the internal auditing department in which the latter presents its internal audit plan, updates on internal audit work, and detailed information on internal audit results. During these meetings the Corporate Auditors share opinions on various matters with the internal auditing department.
Operating Company Governance
To help strengthen operating company governance, mem-bers of JFE Holdings management attend each operating company’s General Meeting of Shareholders and Manage-ment Planning Briefing, receive reports on each operating company’s business activities, discuss subsidiary manage-ment policies, and engage in other forms of shareholder oversight as representatives of the holding company. affiliates by holding management meetings, etc., after
which its board of directors renders decisions. JFE Holdings follows this procedure regarding matters important to the company, operating companies, and Group companies.
Group companies make decisions about key matters based on their own rules and according to clear proce-dures. JFE Holdings makes decisions about group-wide matters. Each operating company considers important matters related to the company and its
JFE Group’s internal control system, which includes risk management, is governed by the Basic Policy for Build-ing an Internal Control System. In accordance with this policy, rules have been established for organizational and operational matters, information storage and man-agement, and violence countermeasures, as well as rules for meetings such as the Board of Directors, Man-agement Committee, and JFE Group CSR Council. A Corporate Ethics Hotline has also been established. To sustain increases in our corporate value, we regularly confirm the existence and operation of internal controls and make improvements where necessary.
Strengthening Internal Controls
Internal Audits
JFE Holdings, its principal operating companies, and important group companies have all established internal audit organizations (with a total staff of 166 across all of the companies mentioned as of April 1, 2010) that are auditing each company’s operations. In addition, the various internal audit organizations share information in an effort to enhance internal audits of the Group as a whole. The internal audit managers from each of the principal operating companies also serve concurrently as internal audit managers for JFE Holdings strengthen-ing ties within the Group.
Audits by Corporate Auditors
JFE Holdings, the operating companies, and group compa-nies, in addition to undergoing statutory audits, also work to enhance audits by Corporate Auditors and strengthen ties among Corporate Auditors through the following activities.
•A total of 52 full-time auditors have been appointed for 39 companies, including JFE Holdings, and parent company staff are dispatched to subsidiaries as part-time external corporate auditors to perform the duties of corporate auditors. Each absentee auditor performs the functions of a corporate auditor for 3-4 subsidiaries (7 absentee auditors serve a total of 27 companies), enhancing Group governance.
•The JFE Group Board of Auditors is composed of the
full-time auditors of each group company and absen-tee auditors. Subcommitabsen-tees and working groups are created to address particular themes and meet autonomously throughout the year to share informa-Outside officers play a key role in strengthening governance at JFE Holdings. Their activities for the FY2009 are described below.
The JFE Group employs management systems tailored to the needs of individual Group members through unifying the strategy development and earnings management for individual products and operations.
Technology development involving multiple Group mem-bers and IT initiatives are deliberated in Groupwide management organs.
* The terms of Member of the Board Uichiro Niwa and Corporate Auditor Takaaki Wakasugi expired with the regular General Meeting of Shareholders held in June 2010. At the same meeting, Akimitsu Ashida, Representative Director and Chairman of the Board of Mitsui O.S.K. Lines, was appointed to the position of Member of the Board, and Hiroyuki Itami, Head of the Specialist Graduate School of Management of Science and Technology of the Tokyo University of Science, was appointed to the position of Corporate Auditor.
Activities of Outside Officers (FY2009)
More information on the current management is presented below.
Structure of Management Committee
Optimal Business Management Systems Other
www.jfe-holdings.co.jp/en/company
Basic Policy for Building an Internal Control System
www.jfe-holdings.co.jp/en/company
Attendees Company Name Chairman/Secretariat
Position at
JFE Holdings Name Other Major Concurrent Position FY2009 Key Activities
Member of the Board
Member of the Board
Corporate Auditor
Corporate Auditor
Uichiro Niwa
Shigeo Asai
Toshikuni Nishinohara
Takaaki Wakasugi
Attended 10 of 12 Board of Directors meetings held during FY2009, contributing insights based on his wealth of experience in global business management and his experience in several public-sector positions.
Attended all 12 Board of Directors meetings held during FY2009, making contributions based on his deep knowledge and invaluable insight gained through years of research on modern steel industry technology.
Attended all 12 Board of Directors meetings and all 14 Board of Corporate Auditors meetings held during FY2009, contributing insights based mainly on his wealth of experience in business management and deep knowledge of accounting and finance.
Attended 8 of 12 Board of Directors meetings and 12 of 14 Board of Corporate Auditors meetings held during FY2009, making contributions based on his many years of scholarly pursuits mainly regarding corporate governance and finance. Advisor, ITOCHU Corporation
Director, Japan Science Technology Agency Innovation Plaza Tokai
Special Advisor, Chuo Fudosan
Professor, Faculty of Business Administration, Tokyo Keizai University
JFE Holdings Chairman: President Secretariat: Corporate Planning Dept.
Chairman: President
Secretariat: Corporate Planning Dept.
Corporate Officers, President of JFE Steel, President of JFE Engineering, Corporate Auditors
Members of the Board, main Corporate Officers, Corporate Auditors
JFE Steel, JFE Engineering, Universal Shipbuilding
JFE Steel JFE Engineering Universal Shipbuilding
Product-sector system
Business-sector system
Business-division system
JFE Group Technology Development Committee JFE Group IT Committee
Key Decision Making
Internal Control
Corporate Governance
JFE Group CSR Council JFE Steel CSR Council
JFE Engineering’s CSR System
Universal Shipbuilding’s CSR System
JFE Urban Development CSR Council
Kawasaki Microelectronics’ CSR System
JFE Group Compliance Committee
JFE Group Environmental Committee
JFE Group Internal Control Committee
Chairperson: President of JFE Holdings Members: Executive Vice Presidents,
Corporate Officers, Fulltime Auditors, respective presidents of operating companies, etc.
Agendas
Compliance, environment, internal control, personnel/labor, safety disaster prevention, and social contributions, etc.
1 Group-wide deliberations (including instructions/guidance on important issues) 2 Monitoring of policy dissemination 3 Information sharing on weaknesses
detected and actual trouble experienced, including subsequent remedial action
Affiliates under Operating Companies, Group Companies
Environmental Committee Internal Audits Committee
Raising CSR Awareness Committee Personnel/Labor Affairs Committee
Social Contributions Committee Group Companies Committee
Safety & Disaster Prevention Committee Compliance Committee
Establishing and Circulating Rules Committee
Risk Management Committee CS (Customer Satisfaction) Committee
CSR News
The JFE Group is acutely aware of its responsi-bilities as a member of society. Meeting corpo-rate social responsibilities (CSR) to help create a better society is a core element of the way we manage our businesses, and our efforts have been redoubled in this regard. In October 2005, we established the JFE Group CSR Council (chaired by the President and convened quarterly every year) at JFE Holdings. This council is struc-tured to supervise and guide the JFE Group’s CSR activities toward various issues, including compliance, the environment, personnel/labor, safety, disaster prevention, social contribution, and response to antisocial forces.
We have also established the JFE Group Compliance Committee, JFE Group Environmen-tal Committee, JFE Group Internal Control Com-mittee, and other group-level organizations to deliberate matters in assigned areas and report findings and results to the JFE Group CSR Council.
JFE Steel
JFE Steel, defining CSR as “boosting corporate value by increasing stakeholder satisfaction,” regards environmental protection, safety, disas-ter prevention, compliance, and other matdisas-ters fundamentally impacting its continued existence as its most pressing concerns.
The CSR Council, which is chaired by the Company’s president discusses CSR matters and policies, and monitors the implementation status of CSR measures. During FY2009, CSR Council meetings were held on 10 occasions during which CSR matters were discussed by 11 committees. As an example of a specific activity undertaken by a committee, Raising CSR Awareness Committee conducted the Corporate Ethics Awareness Survey in Septem-ber 2009. All 15,000 employees were asked to complete this survey—the third iteration since 2005—and results indicated improving aware-ness on most of the tested items.
The Risk Management Committee continu-ously monitored measures taken to address identified risks and developed new rules for plant
operations, sales, and other business processes in preparation for situations like major absentee-ism related to an epidemic of a novel type of influenza.
The Environmental Committee considered and implemented measures like ones for protect-ing environments adjacent to steelworks and other facilities and for putting to use the byprod-ucts of steelmaking. It also resolved to pay special attention to revisions in environmental laws and regulations and respond appropriately.
During FY2010, it will continue to focus on: 1) Establishment of a PDCA (Plan-Do- Check-Action) cycle and 2) Strengthening CSR awareness.
JFE Engineering
JFE Engineering, in order to pursue business activities based on management rooted in CSR, has designated compliance, safety, disaster prevention, and environmental protection as four basic areas of responsibility, and is working to ensure that these responsibilities are thoroughly met. With regard to compliance in particular, the company has established compliance with the Antimonopoly Law as its most pressing concern. It is working to increase employee awareness of its importance through compliance training and the distribution of its Compliance Guidebook, and acting to prevent violations of the Antimo-nopoly Law by improving business processes and implementing operational reforms.
Universal Shipbuilding
Universal Shipbuilding is promoting business activities that comply with the JFE Group Stan-dards of Business Conduct. In so doing, it is paying special attention to compliance, the environment, and internal controls. During FY2009, it organizationally strengthened the Compliance Committee, pushed ahead with measures to sever relationships with antisocial forces, and distributed the Compliance Guide-book to all employees. During FY2010, it will actively pursue internal training and education activities to enhance CSR awareness.
Other JFE Steel Group Companies
JFE Steel distributes CSR News to each JFE Steel group company in support of each company’s CSR activities.To ensure that activities with CSR significance are properly handled, the JFE Group’s internal auditing department incorporates CSR themes like environmental management, compliance with the Antimonopoly Law, expense management, overseas office management, tax law compli-ance, and safety management in its operational audit. These elements are then examined and verified as part of the auditing process.
If an audit reveals a problem, JFE Holdings’ internal audit department and the operating companies then work together to share informa-tion within the Group and reflect corrective mea-sures in the CSR activities of group companies.
JFE Steel’s Environmental Audit
At JFE Steel, environmental management is a key concern in business activities. Consequently, the internal audit department, regularly audits environmental management systems and com-pliance with regulations governing water quality, air quality, noise, and industrial waste at JFE Steel and its group companies. By the end of FY2009, audits were performed at a total of 221 JFE Steel business locations.CSR Structure
CSR System
Major CSR Activities for FY2009
CSR Audit
CSR Management
Management Structure
Total
221
Personal computer security based on fingerprint authentication
Basic Ideas regarding Business Continuity Planning for Earthquakes JFE Steel has identified potential barriers to the continuation of operations following a ma-jor earthquake, established measures for overcoming them, and taken steps to ensure these measures can be implemented. The business continuity plan for earthquakes:
1. Assumes major damage to operations 2. Assumes that only limited resources will
be usable following a major earthquake and focuses on key operations that should be continued
3. Considers the types of damage that could endanger the continuation of key operations 4. Identifies important elements that is
essen-tial for the continuation of operations and, in case of emergency, the absence of such elements could hinder the restoration of key operations
5. Establishes and clearly communicates time targets for restoring key operations 6. Includes preparations to minimize damage The JFE Group has implemented risk
manage-ment measures to risks to continue an emergency. For example, the Risk Management Com-mittee established by JFE Steel in FY2006 over-sees each department’s efforts to identify, as-sess, and consider ways of addressing signifi-cant risks. Particularly signifisignifi-cant risks are re-examined annually and important issues are identified for each fiscal year.
Measures to Address New Flu Viruses
The JFE Group has reinforced its risk manage-ment and safety measures to address the emer-gence of new flu viruses.JFE Steel issued its Provisional Policies for Addressing New Flu Viruses in December 2007 and updated them in March 2009. The updated policies present the Company’s basic ideas on business continuity plans for the emergence of new flu viruses and identify key operations. JFE Steel is also developing plans regarding person-nel required for key operations, and examining is-sues regarding the environments and invest-ments necessary to address the outbreak of a new flu virus. Furthermore, the Company is work-ing to educate employees, creatwork-ing rules for orga-nizational measures like having employees work from home during an outbreak, and moving for-ward with preparations like anticipating legal is-sues that may arise in the wake of an operational shut down to prevent a virus from spreading.
JFE Engineering has implemented measures for employees heading out on and returning from domestic or international business trips, estab-lished procedures to take when employees or family members become ill, and is working to en-sure that all its employees and group companies understand these measures and procedures.
Universal Shipbuilding established mea-sures to address the spread of illness and is working to ensure that its employees under-stand these as well as steps to prevent infection.
Measures to Address
Major Earthquakes
JFE Steel is moving forward with efforts to es-tablish specific recovery measures to provide for the continuation of core businesses in the wake of a major earthquake affecting Tokyo or other areas important to its operations.
The JFE Group has established the JFE Group Policies for Addressing Antisocial Forces and works to ensure sound company management through uniform, organizational measures.
JFE Group Policies for Addressing
Antisocial Forces
The JFE Group aims to completely avoid any rela-tionships with antisocial forces, and the general administration and legal affairs divisions of group companies have been designated as the organi-zational units responsible for dealing with issues
The JFE Group has constructed an information management system that allows it to appropri-ately and smoothly pursue business operations.
Prevention of Information Leaks
Prevention of Information Leaks Caused by Loss or Theft
1. Use of security wires to protect hardware 2. Encryption
(Encryption of certain hard disk areas) 3. Limits on the use of removable media 4. Office entry controls
5. Use of vein authentication to control access to server rooms
Prevention of Information Leaks from PCs
1. Startup authentication
2. Maintenance of logs for the transfer of data to external media
3. Limits on the use of removable media
Prevention of Information Leaks via E-Mail and the Internet
1. Checks for e-mail sent to external parties 2. Retention of e-mail transmitted
3. Limits on the use of Web-based e-mail
4. Limits on the use of Web-based bulletin boards, etc.
5. Development of antivirus measures for LANs and measures to defend against spyware
In addition, the JFE integrated security system (electronic authentication and encryption) and other measures are used to defend against at-tacks involving false IDs and efforts to steal or falsify information.
related to antisocial forces. These divisions report any incidents involving antisocial forces, establish rules for dealing with such incidents, and will work with police and other authorities to resolutely ad-dress matters involving antisocial forces.
Initiatives for the Exclusion
of Antisocial Forces
Establishment of the JFE Group Standards of Business Conduct
The JFE Group Standards of Business Conduct clearly state that it refuses to associate with any and all elements or organizations that threaten social order and stability, and rejects all illegal and improper demands.
Establishment of the Regulations for Addressing Violence Directed at Companies
The Regulations for Addressing Violence Di-rected at Companies have been established and standards for addressing antisocial forces— including a manual for initial steps to take in re-sponding to violence targeting companies—have been clearly specified.
Training
Thorough understanding of the JFE Group Policies for Addressing Antisocial Forces and specific re-sponse standards are promoted among all execu-tives and employees through training and steps like distribution of the Compliance Guidebook.
Database Construction and Agreement Terms Fighting Organized Crime
A database of antisocial forces is being con-structed and terms aimed at fighting organized crime are being included in agreements.
Risk Management System
Elimination of Antisocial Forces
Information Security System
Risk Management
Poster
Compliance Pledge
At the JFE Group, individual employees annually Nowadays, every aspect of business activities is
scrutinized with regard to Corporate Social Re-sponsibilities (CSR), and society demands high levels of fairness and transparency. Companies that neglect this pay the price in terms of losses of credibility that threaten their very existence. Under the above recognition, the JFE Group places compliance—the foundation of CSR—as a key management concern, and it has taken various steps to ensure that all employees have embraced the importance of compliance and are working to promote it.
Corporate Ethics Hotline
The JFE Group has established its Corporate Ethics Hotline to help ensure that important in-formation regarding compliance is communi-cated from the front lines to top management rapidly and accurately. This hotline is operated based on regulations and rules for protecting people who report information or seek advice.
During FY2009, the Corporate Ethics Hot-line received 35 calls regarding matters at JFE Holdings and its operating companies. In each instance, facts were confirmed and callers were provided with response feedback. Access to the hotline has now been extended to group com-panies as an important step in strengthening compliance within the JFE Group.
Compliance Guidebook
As part of its efforts to strengthen its compliance-related initiatives, the JFE Group has prepared its Compliance Guidebook, which has been dis-tributed to, and is understood by, all employees and executives. This guidebook was issued in June 2006, and supplemental versions followed in 2007 and 2009.
The guidebook demonstrates over 100 case studies in plain words, in order to explain em-ployees our specific standards, which instruct how to act by complying with laws and regula-tions as well as internal rules based on the society’s norm. In preparing the guidebook, the various responsible organizational units within the JFE Group painstakingly identified routine matters that can be unclear or confusing, pre-pared explanations, and had legal reviews per-formed by attorneys. The guidebook is used in Compliance Training held at individual work-places in which employees read through it.
Awareness Survey
The JFE Group conducts its Corporate Ethics Awareness Survey to quantitatively assess em-ployees’ ethics awareness, keep all employees informed about the corporate vision, and identify risks. Results from recent surveys indicate that a majority of employees believe compliance aware-ness and behavior have improved. Awareaware-ness of corporate policies and values has greatly im-proved, and compliance systems and activities have steadily taken hold among employees.
Awareness survey results and other informa-tion are being used to take steps that further im-prove the Group.
Report Concerning the Antimonopoly Law
JFE Engineering sued the Japan Fair Trade Commission to overturn its 2006 cease-and-desist order regarding an alleged violation of the Antimonopoly Law concerning a 1998 incinera-tor project. JFE Engineering’s appeal to the Supreme Court was rejected in October 2009, and the company is now complying with the original cease-and-desist order.
Separately, JFE Steel and JFE Engineering, regretting their past violations of the Antimonopoly Law, continue to implement thorough recurrence prevention measures aimed at eliminating the possibility of future violations. Their group compa-nies have also implemented measures to prevent violations of the Antimonopoly Law.
In addition, the internal auditing departments of both companies are helping their organizations to measure if any aspects of contacts with other companies could be viewed as violating the Antimonopoly Law, and taking other actions, as
well, to determine whether initiatives aimed at promoting compliance with the Antimonopoly Law are functioning properly. Audits are regularly conducted at all business locations, including those of affiliates and branch offices.
Key Initiatives Undertaken by Both Companies
• Commitments by top management
• Antimonopoly Law training aimed at promoting understanding of the law and based on concrete examples of the serious impacts violations can have on companies and individuals
• Revision of work regulations to specify violation of the Antimonopoly Law as a cause for discipline • Strengthening of rules on contacts with other
companies in the same industry
In addition, JFE Steel examines the activities of external organizations in which its sales depart-ment is involved, and JFE Engineering is work-ing to improve the transparency and other aspects of its order acceptance process.
Compliance Training
To ensure thorough compliance, the JFE Group conducts compliance training on individual top-ics like the Antimonopoly Law, prevention of in-sider trading, Security Export Control, and the Construction Business Act.
In addition, compliance education is being conducted in job-level, new-hire, and other types of training.
set job goals and on that occasion pledge to comply with all laws and internal and external regulations in the performance of their work. Having employees make that pledge helps to foster compliance awareness.
Compliance Training
JFE Steel has designated October as “Compliance Month.” During this month, individual worksites conduct a “Compliance Training” which encour-ages employees to know, think, and gain a better understanding of the rules of JFE Steel, including their objectives and meanings. Individual depart-ments hold sessions in which parts of the Compli-ance Guidebook, as well as supporting informa-tion, legal passages, internal regulations, and other information posted by the Legal Affairs Depart-ment on the intranet, are read through in an effort to foster awareness of the need for compliance and encourage consideration of whether work practices actually comply with relevant laws and regulations. After the completion of these activities, work practices are revised where necessary and rules are revised via appropriate procedures. Main Trainings at Each Group Company
Guidebooks
Training Themes Number of Participants
Total 808 in 30 sessions
Total 1,355 in 34 sessions
Total 937 in 42 sessions Total 470 in 21 sessions
712 (E-learning courses)
338 (E-learning courses)
93 (E-learning courses)
356 (E-learning courses) Antimonopoly Law
Other law-related trainings
Construction Business Act Antimonopoly Law, etc.
Prevention of insider trading
Management of confidential information Security Export Control Management of information security
JFE Steel and its group companies JFE Engineering Universal Shipbuilding
Kawasaki Microelec-tronics
About Compliance
Efforts for Raising Compliance
Awareness
Compliance
Management Structure
68,000
copies About
Copies of Compliance Guidebook distributed (2009 supplemental version)
35
Individual QMS Organizations Group-wide Quality
Committee
Group-wide QMS Management Representative
Division Director
Quality Committee QMS Manager
General Manager of Sales Department
General Manager of Engineering Department
Group Companies CEO
Customers & clients
Former NKK
Before merger
Customers & clients
After completion of J-Smile
Bridging Former Kawasaki
Steel
JFE Steel
Purchase
Profit
manage-ment
Integration
Transfor-mation
Purchase
New system base Personnel
Personnel Purchase
Profit
manage-ment
Flexible systems
Sales
Logistics Sales
Produc-tion
Logistics
Sales
Logistics
Produc-tion
Profit management Corporate DB
Produc-tion Web
Implementation date: shifting to a new company name, integration of personnel systems, changes to the bridging system Changes effective on the implementation date Restructuring Reorganization
JFE Engineering
JFE Engineering has established a comprehen-sive quality assurance system from sales, design, procurement, and installation through to follow-up services, by setting up Quality Man-agement Systems (QMS) for the entire company.
Based on the Group-wide quality assurance system, each business department has obtained ISO 9001 qualification by developing QA manu-als according to the characteristics of each product. In this way, the company aims to meet its customers’ rigorous needs for product quality.
Universal Shipbuilding
Universal Shipbuilding has earned various certifications at each of its shipyards. These include ISO 9001, as well as qualifications of ship classification societies, and the Japanese government.
Each group company has established a quality assurance system, which complies with these standards, as the basis for efforts to ensure product quality that satisfies customers, through all processes from sales, design, and ship building to follow-up services.
JFE Steel
JFE Steel has acquired ISO 9001 and various other QA certification including the JIS mark and approvals from ship classification societies. The company is working hard to ensure thorough rule compliance and improve testing reliability in accordance with industry guidelines. It is also moving forward with efforts to further improve quality and strengthen its quality management system, under a framework standardized with quality control manuals. As one example, the material testing facilities at the Chita Works were refurbished to meet the requirements of high-performance products, and testing equip-ment was rearranged according to function, to help assure customers who are observing tests that they can rely on JFE. In addition, its group companies are also working to reinforce quality assurance systems and constantly improve quality.
Aiming to improve customer satisfaction, the JFE Group actively communicates with custom-ers. Furthermore, we continue to make earnest efforts to be a reliable and attractive supplier by offering solutions to customers’ various require-ments, through our product development, manufacturing, and sales departments.
JFE Steel
Establishment of a Research and Testing Facility Where Products Can Be Developed Together with Customers
JFE Steel, in an effort to increase customer satis-faction, has established a research and testing facility that enables product development in cooperation with customers. This facility includes the Customers’ Solution Lab specifically for auto industry customers, the Steel Structural Materi-als Solutions Center mainly for purposes related to heavy steel structures and applications of thin-sheet construction materials, an exhibit area highlighting the latest research results, an area for studying structures and material composi-tions, as well as laboratories and meeting rooms. Going forward, the company aims to rapidly turn out high-value-added products by energetically advancing research in cooperation with customers.
New Operation System Launched
Aiming to build management information infrastructure and an operational base that make the most of management resources and increase customer satisfaction, JFE Steel launched its new J-Smile system in March 2006. This system integrates the operation systems of the two companies—NKK and Kawa-saki Steel—that were merged to create JFE Steel. With the implementation of the J-Smile system, JFE Steel established a foundation for achieving the merger purposes of continuously adapting to future business conditions and realizing additional growth. Since implementation, the company has strengthened its ability to respond to customer needs in areas like lead time, delivery time, quality assurance, and new product development. Furthermore, it has revamped existing systems not only in its head office but also at its steel-works, integrating operations and management. In recognition of its success in realizing operation processes and systems that facilitate management innovation, the J-Smile system was named the winner of the 2006 Minister of Economy, Trade and Industry Award for Compa-nies at the 2006 Prizes for Contributions to Infor-matization in Japan, 2nd Prize at the IT Japan Awards 2007, and the World Information Tech-nology and Services Alliance IT Prize 2008.
Steel Structural Materials Solutions Center
Material testing facilities
Customers’ Solution Lab
Organization Chart of JFE Engineering’s QMS
Outline of Newly Integrated Operation System
Quality Assurance System
Improvement of Customer
Satisfaction (CS)
Tokyo Stock Exchange
TDnet Board of Directors
Division identifying and defining material facts (a division in charge of legal affairs)
Division controlling material facts (a division administering events)
Division aggregating information data on material facts (a division in charge of general affairs)
JFE Holdings
Communication and coordination
Communication and coordination
Communication and coordination
Communication and coordination
Communication and coordination Decision making
Delibe-ration
* For “Information on financial results,” executive officers of the Company and other major operating companies host a Disclosure Review Committee meeting to confirm the appropriateness of such information, prior to the review by the Board of Directors.
• Information on decisions • Information on
financial results
Information on events occurred
Public relations
division Disclosure
control division
• Information on material facts regarding operating companies
• Information on material facts regarding group companies
(Yen/share)
(FY)
0 150
(%)
0 30
‘05 ‘06 ‘07 ‘08 ‘09
50 10
100 20
Dividend per Share 26.6
23.4
18.0
25.3
23.2
20
Dividend payout ratio
100 120 90 120
Eco-Products 2009 Training session
The JFE Group, as a proponent of sound securi-ties markets, strives to provide timely and appropriate disclosures of corporate informa-tion. To disclose corporate information in a manner that is prompt, precise, fair and appro-priate from the viewpoint of investors, we also endeavor to enhance our internal framework.
Timely and Appropriate Information
Disclosure
To preserve its credibility in the securities markets, the JFE Group has set forth internal regulations regarding material facts and estab-lished organizational units for managing informa-tion and making decisions on and implementing timely disclosures. We also make timely and appropriate disclosures of important company information in addition to issuing the securities filings, quarterly reports, extraordinary reports, and other statutory disclosures called for by the Financial Instruments and Exchange Act.
JFE Urban Development
JFE Urban Development Corporation focuses on follow-up services as a way to increase customer satisfaction. Its Customer Center takes in requests for follow-up service for condominium units it has sold and provides rapid, detailed responses.
To help ensure tight security for personal information, it uses a finger-vein authentication to control entry to offices were customer data is handled and retains logs of entries to these rooms.
JFE Group Companies
Performance of Appropriate Export Procedures
To prevent the spread of weapons of mass destruction and the excess accumulation of conventional weapons with the aim of helping to maintain international peace and security, JFE Steel carries out export inspection to confirm final destinations, customers, and applications, and holds internal briefings conducted by Legal Affairs Department, in order to ensure thorough understanding and compliance with the Foreign Exchange and Foreign Trade Act and other export-related laws and regulations. Similarly, Kawasaki Microelectronics uses e-learning-based instruction on export security control, and takes other steps, to help ensure that it performs appropriate export procedures.
Participation in Eco-Products 2009
In December 2009, the JFE Group participated in Eco-Products 2009, Japan’s largest environ-mental exhibition held at Tokyo Big Sight. Basic environmental stance, environmentally friendly technologies and products of the JFE Group were presented there.
Development of Customer Strategies
JFE Steel is always aware of business conditions of customers. It regularly conducts customer surveys and interviews to develop business strategies, which are shared among sales departments, business planning department, steelworks, and research labolatories. The implementation at the organization level allows us to accelerate operations while improving customer satisfaction.
Development of Sales Personnel Who Excel in Building and Maintaining Customer Relations
To develop sales personnel who can discuss technical matters with customers, make rapid decisions on and implement initial responses to complaints, and recognize and diligently cham-pion new customer needs as product develop-ment hints, JFE Steel conducts basic courses on steelmaking materials for newly appointed sales personnel. It has also prepared product technology texts for particular components, end uses, and other sectors and fields.
JFE Engineering
Application of Customer Information
JFE Engineering uses customer surveys and interviews regarding delivered products and services, and evaluations of construction work performed, to gather customer feedback on construction management, product quality, advanced technologies, and innovativeness. This information is then analyzed by marketing, design, manufacturing, and research divisions, and used for purposes such as improving quality, developing new products, and enhancing follow-up services with the overriding goal of maximizing customer satisfaction.
The JFE Group considers generating returns to its shareholders to be one of its top management priorities, and achieved a consolidated payout ratio of 25% for the three years of the Second Medium-Term Business Plan (April 2006–March 2009). In addition, our own share buybacks have exceeded 400 billion yen during the same period; as a result, the total return ratio has reached 80%.
Looking ahead, we will continue our efforts to ensure the stable payment of dividends through the establishment of a sustainable corporate financial position for the entire Group. In other words, we will aim to maintain a basic payout ratio of 25% level. Considering the increasing uncertainty surrounding the global economy and the need for aggressive investments to foster our business growth, we will strive to maintain and improve our solid financial position first.
Information Disclosure System Returns to Shareholders
Basic Policy for Information
Disclosure
Basic Policy for Returns to
Shareholders
Customers and Clients
Relationship with StakeholdersShareholders and Investors
Relationship with Stakeholders25
% (average)Kurashiki Music Festival Shareholders on a plant tour
Presentation ceremony
“For Shareholders” Website
Communication with Shareholders
JFE Holdings, seeing its General Meeting of Shareholders as a chance for dialogue with shareholders, sends invitations at the earliest possible date in an effort to maximize atten-dance and avoid days on which shareholder meetings are concentrated when setting the meeting date. For the benefit of shareholders who cannot attend, the Company, in addition to the normal proxy form, has also made it possible to exercise voting rights online.In addition, to help shareholders better understand the Company, we have been holding plant tours and company briefing sessions since FY2006. In FY2009, we held a total of 20 tours and briefing sessions for a cumulative total of 1,814 shareholders at the JFE Steel East Japan Works (Chiba and Keihin) and West Japan Works (Kurashiki and Fukuyama), the JFE Engi-neering Tsu Works, and at Universal Shipbuild-ing Tsu Shipyard. Over the four years we have offered tours and briefing sessions, we have welcomed over 9,400 participants and plans are in place to continue holding tours and briefing sessions in FY2010.
Communication with Investors
For institutional investors and securities analysts, the JFE Group gives individual press interviews and has its people visit domestic and overseas investors. Regarding the results briefing sessions targeting institutional investors, we strive for fair disclosure through activities such as online publi-cation of materials.The JFE 21st Century Foundation was originally established in 1990 as the Kawasaki Steel 21st Century Foundation. Taking on its current name in 2003, the foundation continues to fulfill its original mission of being open to society and promoting the common good. For FY2010, the foundation has a budget of 78 million yen.
Technical Research Assistance
The foundation has been providing research assistance on a competitive basis to promote technology research at universities since FY1991. During FY2009, 394 grants totaling 790 million yen were awarded to universities all of which were very thankful for the foundation’s efforts to support research. Among the most recent grants, 11 were for the support of steel technology research and 10 were for environmental technology research. Each grant was worth 2 million yen and the foundation’s total support for these two research areas came to 42 million yen. Reports on research results are posted on the foundation’s website.Support for Asian History Studies
The foundation began awarding grants to support Asian history studies at Japanese universities in FY2005. During FY2009, 77 applications were received and 7 grants (each worth 1.5 million yen) totaling 10.5 million yen were ultimately awarded.Support for Educational Activities
in Areas Associated with Steel
Since FY1991, the foundation has been spon-soring the JFE 21st Century Foundation prizes for the writing (essays and Japanese and For individual investors, we actively
dissemi-nate information through channels like company briefing sessions held at the branch offices of securities firms and other places, transmission of video interview with the top management, and an IR email service for those who register ahead of time.
We send, in principle, English-language versions of important press releases to investors in overseas locations when the Japanese version is released, and take other such steps to ensure they are provided with the same information as Japanese investors.
Looking at the future of IR (Investor Rela-tions), we believe it is important to determine the kinds of companies markets and institutional investors view as having bright futures, find out how JFE is seen, and provide this information to operating and group companies.
Toward that end, we embarked on efforts to strengthen our IR activities by establishing IR sections in our financial and IR departments in October 2009.
Information Dissemination
JFE Holdings is devoted to enhancing the content of its website to help shareholders and investors earn a better understanding of its business. Up to the present, our website has been accessed by large numbers of visitors.
The company also issues the information “For
Shareholders” semiannually, with a message from
the President & CEO, a summary of business results, and discussions of matters related to the JFE Group.
western-style poetry) contest operated by Japan Overseas Educational Services for Japanese elementary and middle school students studying overseas. Copies of “Chikyu ni Manabu” (Learn from the Earth), a collection of the winning entries for FY2009, were presented to 480 elementary schools, 215 middle schools, 116 public librar-ies, and 11 education committees.
Co-sponsoring Cultural Activities
and Events
The Foundation co-sponsors various cultural activities and events hosted by local authorities and community groups, and enjoyed by the general public. In FY2009, it co-sponsored the following activities and events.
•Jo Chihun Cup Go Competition (Chiba)
•Chiba Prefectural Youth Go Competition (Chiba, Funabashi)
•International Music Day Concert, Chiba Citizens’ Music Festival (Chiba)
•Citizens’ Special Performance of Beethoven Symphony No.9 (Chiba)
•MUZA Lunch & Night Concert (Kawasaki)
•ART KAWASAKI 2009 (Kawasaki)
•Community Festival (Kawasaki)
•Yokohama Children’s International Peace Speech Contest (Yokohama)
•Handa Community Industrial Festival (Handa)
•Mie Prefecture High Schools’ Robot Tournament (Tsu)
•Kurashiki Music Festival (Kurashiki)
•Kurashiki Shogi Tournament (Kurashiki)
•Fukuyama Rose Festival (Fukuyama)
•The World of Matsuri (Fukuyama) Activities in FY2009
Communication with
Shareholders and Investors
Philanthropic Activities by the
JFE 21st Century Foundation
Shareholders and Investors
Relationship with StakeholdersLocal Communities
Relationship with Stakeholders394
projects790
million yen
Total grants for technical research
39
projects58.5
million yen
Total grants for Asian history studies
1,817
Number of shareholders attending the General Meeting of Shareholders in FY2009
9,400
Approx.
Number of participants for guided plant tours for shareholders
400
Approx.
Number of individual interviews with institutional investors and securities analysts in FY2009
300
(6 sessions) Approx.
Community Festival (Keihin area)
Autumn Festival in Tsu City
Support for the Japan Association
for the UN World Food Programme
The Japan Association for the UN World Food Programme is an NPO accredited as a supporter of the UN World Food Programme (WFP), a United Nations organization with the mission of eliminating hunger and poverty. It conducts promotional activities to help expand the circle of WFP support in Japan, including collecting donations to assist WFP activities, conducting public relations activities, and promoting coop-eration with companies and organizations. Amid rapidly rising numbers of people suffering from hunger due to global economic upheaval and relentless food price hikes in developing countries, the JFE Group agrees with and supports the intent of the association’s activities.Support for Japanese Language
Speech Contests
The China Education Association for International Exchange, The Society of Chinese Professors in Japan, and Nikkei Inc. have been sponsoring the All China Japanese Speech Contest since 2006. The purpose of this contest for Chinese students is to use words and communication as a vehicle for promoting better relations between Japan and China. For this contest, the first of its kind held at a national level in China, preliminary rounds are held in eight regions and the final round is held in Tokyo. JFE Holdings supports this speech contest as a way to promote international exchange and contribute to society.
Support for the Nihon Ki-in
The Nihon Ki-in engages in various public-service activities related to the Japanese game of igo. Igo
has attracted attention from the social welfare, medical, and educational communities for being not just a game but also a useful tool for invigorat-ing the brain, somethinvigorat-ing around which people focus their lives, and a center of social activity. Igo is a lifelong learning interest and an integral part of life for many people, serves as an important focus of communication in many communities, and plays a useful role in the sound development and enrich-ment of children and teenagers. JFE Holdings supports the aims and activities of the Nihon Ki-in.
Support for the Japanese
Foundation for Cancer Research
Since its establishment in 1908, the Japanese Foundation for Cancer Research, in pursuit of its mission to overcome cancer, has played a leading role in cancer research and treatment, as well as human resources development, in Japan. JFE Holdings supports the Foundation’s goals and activities.The JFE Group provides financial assistance to support the recovery of areas stricken by major disasters.
•For the Great Sichuan Earthquake
Contributed 20 million yen to the Japanese Red Cross Society via Nippon Keidanren
•For the Iwate-Miyagi Nairiku Earthquake Contributed 3 million yen to the Central Com-munity Chest of Japan
•For the Haiti Earthquake
C o n t r i b u t e d 1 m i l l i o n y e n t o t h e N P O , Japan Platform
Internships
JFE Steel has offered internships to graduate school, university, and technical college students at its steelworks and research facilities. Approxi-mately 70 students from throughout Japan participated in these nearly 2-week internships in which they learned through experience what it is like to work at a steelworks or research facility. Both schools and students praised these
intern-ships as excellent opportunities to learn about possible career choices and involvement in society. JFE Engineering hosted 10 interns, mostly at its Technical Research Center, while Universal Shipbuilding welcomed 20 interns each to its Ariake and Tsu Shipyards.
Manufacturing Classroom
Since FY2003, JFE Steel has been working to communicate to children in the Chita area of Aichi Prefecture that making things is interesting and fun. Its retired employees teach and help children to make accessories out of cast parts and lead them on plant tours. In FY2009, the c o m p a n y held 11 tours for a total of 709 elemen-tary school students.
Support for High School Essay Contest
The Japan Science & Engineering Challenge (JSEC) is a national science paper contest for high school and technical college students. It is sponsored by the Asahi Shimbun and backed by the Cabinet Office, Ministry of Education, Culture, Sports, Science and Technology, and other national government agencies, the Physical Society of Japan, the Japan Institute of Invention and Innovation, and other scientific societies.JFE Steel began supporting JSEC in 2006 based on its desire to help foster the develop-ment of future scientists and engineers. In 2009, the JSEC JFE Steel Prize was awarded to Ehime Prefectural Nagahama Senior High School and JFE Steel presented the school with an additional award of research equipment.
The JFE Group annually opens up its manufac-turing facilities to local residents for demonstra-tions, tours, and other events.
We also make our recreational facilities avail-able to the public to promote local sports activi-ties, and sponsor soccer, baseball, volleyball, basketball, and other sporting events.
All China Japanese Speech Contest
JFE Steel
JFE Engineering and Universal Shipbuilding
Universal Shipbuilding
East Japan Works, Chiba
East Japan Works, Keihin
West Japan Works, Kurashiki West Japan Works, Fukuyama
Chita Works October 25,
2009 November 8, 2009 November 3, 2009
May 10, 2009
November 14, 2009
JFE 2009 Chiba Festival
Fifth Community Festival
JFE West Japan Festival in Kurashiki
JFE West Japan Festival in Fukuyama
Handa Community Industrial Festival (Handa)
Co-sponsored by JFE Engineering Tsu Works and Universal Shipbuilding Tsu Shipyard October 17,
2009
Autumn Festival in Tsu
Ariake Shipyard October 3, 2009
Ariake Family Festa
Awards Ceremony of JFE Steel Award Manufacturing Classroom
Support for External Organizations
Aid for Disaster Relief
Youth Development Support
Plant Tours
Local Communities
Relationship with Stakeholders398,000
Human rights training course (JFE Steel) Mie Data Craft
Passing on skills to next generations (Universal Shipbuilding)
Passing on of Techniques and
Skills, and Re-Employing Retirees
With its individual steelworks all expressing the desire to continue applying the valuable know-how of veteran employees, JFE Steel created its Senior Expert Program for rehiring employees who reach the mandatory retirement age of 60. As of April 2010, JFE Steel had rehired approxi-mately 770 retirees under this program. Further-more, the company is devoting significant time and effort to the establishment of a program for developing people to help junior and mid-level employees improve their techniques and skills, and here, too, rehirees are being asked to act as instructors in passing on their knowledge.The JFE Engineering Group also has a similar re-employment system to pass on to younger generations the techniques, skills, and project experience of veteran employees. It has also established the Career Consulting Section to help employees who are facing mandatory retirement or a second retirement after re-employment to continue their careers.
Universal Shipbuilding, meanwhile, has veteran employees over the age of 60 instruct younger employees on a daily basis in order to pass on techniques and skills as expeditiously as possible. The company has also established a department in charge of technical assistance, and assigns a mentor for each young worker to provide technical guidance.
Human Resource Development
To develop professionals who are expert in particular areas, JFE Steel has put together an OJT-based training system. And to supple-ment this system, the company has enhanced its foreign study and off-the-job training programs, which not only help employees elevate their professional knowledge and expertise but also offer the JFE College internal curriculum aimed at helping employees obtain business and management skills.In addition to personnel training, JFE Engineering has adopted an internal recruiting system in order to optimize the best-fit allocation of personnel and make the most of their untapped capabilities.
Helping Women to Thrive
While the JFE Group has, of course, established an equal-pay system in accordance with the intent of the Equal Employment Opportunity Act for Men and Women, we also consider the creation of working environments in which women can thrive to be a top priority. Toward that end, we are work-ing to not only increase our hirwork-ing of women but also improve their working conditions. Further-more, we are considering possibilities for expand-ing the breadth of areas to which women are assigned and taking other steps, as well, to increase the range of roles women play through-out the Group.
As of April 2010, JFE Holdings and its oper-ating companies had approximately 6,700 career-track employees (about 5,200 in manage-ment positions), among which were around 130 women (around 50 in management positions).
Work-Life Balance
The JFE Group is striving to create pleasant, productive working conditions, and make itself an even more attractive employer. Going forward, we will continue our efforts to identify employee needs through regular dialogues with labor unions and other parties, and make appropri-ate improvements in working conditions.
Employment of People with
Disabilities
To provide opportunities for people with various disabilities to fully exercise their capabilities, the
1. Extended Child Care Leave
Employees can take extended child care leave until their child reaches 18 months of age. Thereafter, under certain circumstances such as difficulties in finding a vacancy at a nursery, an additional extension will be allowed to the end of March of the year immediately after the period of 18 months expires.
2. Abbreviated Working Hours for Child Care Under this system, employees may work 2 fewer hours per day until their child finishes the third year of elementary school.
3. WLBS (Work-Life Balance Support) Leave Under this system, employees with one child may take up to 5 days of leave per year until their child finishes elementary school. Employ-ees with more than one child may take up to 10 days of leave per year.
JFE Group operates three special subsidiaries: JFE Apple East Corporation, JFE Apple West Corporation, and Mie Data Craft Co. Ltd.
Respecting Human Rights
The JFE Group regards respect for human rights as both a corporate social responsibility and a key management concern, and involves the entire Group in efforts to raise consciousness of human rights.
Specific examples of these efforts include: 1) Appointment of employees to oversee human rights education; 2) Implementation of various human rights training courses; and 3) Guaran-teed employment opportunities, and promotion of fair human resource management.
To prevent sexual harassment, we have taken steps like establishing relevant work regu-lations, holding training, displaying posters, and setting up hotlines staffed by multiple men and women at each business location. Training is also held to prevent power harassment. And, during human rights week, leaflets, including messages from management, are distributed and employ-ees are encouraged to submit slogans.
JFE Steel’s Main Family-Friendly Employment Policies
Child Care/Nursing Leave Taken by Employees
Employment Rate of Persons with Disabilities (as of June every year)
FY2008 FY2009 FY2010
2.05 1.96
1.68
1.86
2.00 2.06
1.68
2.02
1.99 2.06
1.40
3.33
FY2007 FY2008 FY2009
24 1
33 3
38 1
Child care leave Nursing leave
JFE Steel JFE Engineering Universal Shipbuilding Kawasaki Microelectronics
(%)
* Legally-prescribed minimum employment rate of persons with disabilities 1.8%
Application of Human Resources
Positive, Productive Working
Environments
Employees
Relationship with Stakeholders2,675
Number of employees taking human rights training courses in FY2009 (JFE Steel)
3.33
%1.40
%1.99
%Employment rates for people with disabilities (as of June 2010)
2.06
%JFE Steel
JFE Engineering
Universal Shipbuilding
