Human Assets. Respect for human rights. Social

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1 Foundation for Creating Value (ESG) Human Assets We shall continue to make efforts to create a better environment so that employees can devote themselves to their work in a safe and healthy way and achieve self-fulfillment through their work. Message Kazuhiro Yoshida Executive Officer, General Manager of Human Resources Office and Human Resources Center In order for Chubu Electric Power to be selected by customers and to continuously develop, we believe that a diversified group of human assets must be able to improve their abilities and perform, and we will support our employees so that they can do just that. We will provide training and develop workplace environments so that women, the elderly, and the challenged can find it easy to work at Chubu Electric Power. In fact, the steps we have taken to help women play an active role in corporate business have been highly rated by external entities. We have also been monitoring trends in response to the work style reforms promoted by the Japanese government and are promoting changes of our own that will enhance productivity, such as allowing employees to flexibly adjust their work. Moreover, we are very proactive about providing training and education opportunities that help our employees to grow. We will maintain a healthy corporate atmosphere where human rights are respected and will continue to develop motivating workplace environments where every single employee can perform to the best of his/her abilities. * Because Chubu Electric Power believes that the people who work for it are its most important asset and that they are the source that creates value in its business activities, we refer to them as our human assets instead of human resources. Respect for human rights Human rights awareness and education policy 1. We carry out initiatives to deepen correct understanding and awareness among employees, etc., with regards to human rights issues (e.g., problems of social integration and discrimination based on disability, nationality, gender, etc.). 2. We carry out awareness-raising initiatives on problems of social integration, understanding this to be an important part of human rights issues. 3. Our awareness-raising initiatives are systematic and continuous. We conduct education targeted to all levels of employees, from newly hired employees to the management regarding human rights and the prevention of harassment. We also conduct presentations for the officers and management of our Group companies. 65

2 External assessment regarding human assets We have received high ratings from both the national and local governments regarding our overall efforts for our human assets. These efforts include efforts for diversity including the utilization of our female employees, support for employees raising children and health management support. Management that utilizes diversity Ministry of Economy, Trade and Industry: Best 100 Companies in Diversity Management (FY2014) First company in the electric power industry Promoting the utilization of women Support for working parents Ministry of Health, Labour and Welfare: First company in Aichi Prefecture to receive this certification Eruboshi certification (from FY2016 to date) Ministry of Economy, Trade and Industry and the Tokyo First company in the electric power industry Stock Exchange: Nadeshiko Brand (FY2015) Aichi Prefecture: Aichi Josei Kagayaki Company (Aichi Women s Career Success Supporting Company) (from FY2016 to date) Nagoya: Received the Female-friendly Company Award (from FY2010 to date) Ministry of Health, Labour and Welfare: Kurumin certification Certified three years in a row (three times since FY2010) Nagoya: Received the Award for Excellence of Childcare Support Company (from FY2009 to date) Health management Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi (Japan Health Committee): Excellent Health Management Company 2018 (White 500) (FY2017) Certified for the first time Human asset statistics Male Female Employees 14,620 89% 1,866 11% Five years ago 15,704 89% 1,855 11% New recruits % 68 We are recruiting a stable number of new We have reduced the number of employees by increasing efficiency. employees * As of March Note however that the number of new recruits shows the number of new entrants as of April The number of employees is the number currently employed by Chubu Electric Power. 17% Average number of years employed 22.1 years 18.7 years We are aiming to create a workplace where employees can actively work for a long time. Activities for developing human assets With respect to our human assets which are the fundamental core of our competitiveness, we are taking measures to educate them in a systematic way so as to maximize the qualities and abilities of each employee. Development of abilities in the workplace In the workplace, in addition to receiving instruction from their superiors in their daily work, all employees are interviewed every six months to confirm their goals and issues for developing their abilities. In this way, we are developing human assets that will take on the responsibility of the next generation. Activities for strategic development of human assets In order to obtain the necessary skills to create new values in new business fields, we provide training in strategic planning, marketing, innovation, and finance. We also provide business planning training using the action learning method. FY2017 results Strategic human asset training participants 209 Chubu Electric Power Company Group Integrated Report

3 Work style reform Flexible work style and improved organizations We aim to introduce a variety of methods to enhance diverse work styles so that our employees can achieve self-fulfillment while also fully demonstrating their abilities through their work. New efforts We are promoting flexible work styles in order to improve productivity, manage seasonal fluctuations in work load, and consider the individual needs of our employees' families. More workplaces are adopting flexible working hours Employee's Comment Rieko Kaneda Internal Communications Group Business Solution & Corporate Communications Center April 2018 Adopted throughout the company Introduction of telecommuting At client offices or at our offices near the residences of employees (satellite offices) Introduced in April 2018 Regular workplace Business trips (mobile work) Achieving both work and child-raising thanks to a flexible work schedule and understanding among co-workers Thanks to the use of flexible working hours, I am able to adjust my schedule so that I can work hard on some days and go home early on others based on the amount of work I have to do or if my child is sick. During the peak period of my own work, I ask my husband to take our child to daycare so that I can arrive at the office earlier and work extra hours. Thanks to a flexible work schedule and the understanding of my co-workers, I am able to accomplish a balance between my work and raising my child. Home Efforts so far More workplace social events Through these events, we promote workplace communication and teamwork improvement. Work modulation We have set up go home early days and overtime instruction cards. Chuden Running Festival 2017 Goals are set for monthly overtime and overtime instruction cards are used to notify whether or not an employee will be working overtime. Support for balancing work with child-raising and nursing elderly relatives Childcare leave system Nursing care leave system Life-support leave that can be used for social contribution activities as well as when family members are ill Scene from a career-building course for employees returning from childcare leave in which partners also take part. These courses help to cast aside the fixed concepts of gender roles and both men and women are given the chance to rethink how they work. 67

4 Foundation for Creating Value (ESG) Health management and labor safety Strengthening health management In February 2018, Chubu Electric Power was certified an Excellent Health Management Company 2018 (White 500), a certification received by companies that are making advanced efforts in health management*. This was the result of the efforts we have made to help our employees maintain their mental and physical health. * This is a project to strategically approach the health control of employees from the point of view of management based on the concept that efforts to maintain and improve health are an investment by companies to improve their revenues and other factors in the future. The effects of health management inside and outside companies Improved image of a company Improved productivity due to assuring safety and health Motivation for employees to work Effects inside a company PR aimed at clients PR aimed at people seeking employment Award ceremony for the Excellent Health Management Company 2018 (White 500) Effects outside a company Measures to remain healthy and work actively Starting in 2019, all employees will undergo comprehensive medical checkups (no expenses required by employees) Prevention and early discovery of serious illnesses Fostering a consciousness of health Support for independent and continuous fitness to enable employees to continue work until age 65 Nutrition advice and exercise instruction by industrial health staff Mental health measures for the prevention and early discovery of mental illnesses Education and training targeted for different ranks of employees Holding training for stress management methodologies Improving workplace environments by effectively using stress check results Eliminating workplace accidents Workplace accident frequency rate* for all industries Assuring safety is the top priority of management at Chubu Electric Power. In addition to making efforts for all employees to follow the basic rules, we also place an emphasis on holding training to improve communications both inside and outside the company as a part of our efforts to eliminate workplace accidents of all sorts. With respect to traffic safety, we are working with a specialized external organization to hold safe driving education to foster a greater consciousness of safety and to improve driving skills. As for workplace safety, we conduct risk assessments and conduct safety patrols in order to mitigate accident risks and prevent accident before they occur. * Number of injuries and deaths (leading to an absence of one day or more) caused by workplace accidents per one million work hours. Represents the frequency of accidents. Chubu Electric Power Company Group Integrated Report

5 Promoting diversity Chubu Electric Power has positioned the promotion of diversity as an important issue, and in 2007 we established the Women s Activities Promotion Office. In 2013, we expanded this organization into the Diversity Promotion Office, and in 2018, the organization was expanded into the Human Assets Promotion Group. We have adopted various measures that will maximize the abilities of our diverse human assets and improve our corporate value. Promoting the activities of our female employees Number of female managers FY Target (by FY2020) Aim for 2 times or more Changes in the number of female managers and numeric targets (No. of people) times Dedicated 200 or more organization established (FY) The panel discussion for female leaders with managers to think about the workplace and how women can contribute to the company from a higher point of view. Activities to promote female empowerment Various training for women grouped by age, rank, whether they are raising children, and other factors with an emphasis on forming their careers. Assigning work and transfer in order to accelerate growth and holding consciousness enlightenment education for all managers. Promotion of more flexible work styles by expanding the current system. T O P I C Training Course for Female Senior Staff In order to develop female leaders, we conduct a training course for female senior staff who can be expected to act as leaders in the future. This is a 6 month training course that leads to a transformation in consciousness and improving skills necessary for managers. Results of the employee survey on female empowerment We conducted an employee awareness survey in June 2017 to compare where things stood compared to where we were ten years ago when we started our activities to empower women. Do you think that the abilities of the women who work Question for our company are being sufficiently demonstrated? Over 70 percent of the total thought that their abilities were being demonstrated. Total (2007) Total (2017) Men (2007) Men (2017) Women (2007) Women (2017) 37% 40% 37% 73% 74% 70% Do you hope to aim for a position that would require Question greater leadership and management ability in the future? Over 70 percent of the total said that they would like to aim for such a position. The awareness of women as a whole has increased, especially those in their twenties and thirties. Total (2007) Total (2017) Women in 20s (2007) (2017) Women in 30s (2007) (2017) Women in 40s (2007) (2017) 41% 38% 51% 45% 58% 65% 72% 88% 69

6 Foundation for Creating Value (ESG) Promoting employment of the challenged We have maintained a higher percentage of challenged employees than legally required Including those working at our special subsidiary Chuden Wing Co., Ltd. (established in 2001), about 340 challenged employees are working in our Group in various fields (as of June 2018). Since its establishment, Chuden Wing has been involved in printing services, sales of novelty products, gardening work, and the like. In order to create more employment opportunities for mentally and intellectually challenged people, Chuden Wing has started new businesses, such as clerical assistance work, cleaning work, and training assistance work % Changes in the employment of the challenged (%) Percentage employed at Chubu Electric Power Percentage that is legally required * As of June 1 of each year (FY) Hiring seniors Number of re-employed 530 In order to allow re-employed people (who had retired once) to work in a wider range of jobs, we have introduced a system in which working conditions such as working hours are close to those of our employees. As of the end of March 2018, about 530 re-employed people are working for us. We also conduct a self-setup course for employees who are 52 years old so that they can continue to actively work with vigor and maintain their ability once they reach their senior years. A re-employed worker is sharing his expertise and wealth of knowledge to younger employees in the workplace and also though training courses. Employee's Comment In order to utilize diverse ways of thinking Fusae Yamaguchi General Manager of Kuwana Customer Service Office Mie Regional Office Power Network Company The awareness to proactively utilize the thoughts and ideas of various human assets is spreading inside the company. In order to promote diversity, I think it is important for each individual to be independent and for everyone to have the common understanding that they are part of an organization. To that end, I believe that the following process is important: Do not be afraid to voice your own opinion; listen to opinions that differ from your own and respect them; and once the direction is determined, everyone should work together for success. Chubu Electric Power Company Group Integrated Report