Annual Report 2018

Fundamental Mindset

Tosoh is promoting measures to ensure its employees achieve a good work-life balance. It is also ensuring a workplace environment where its diverse personnel will enjoy working.

Personnel System

With the objective of developing employees, we are approaching job responsibilities, personnel development interviews, personnel performance appraisals, and the wage system in a coordinated fashion. Each employee, for example, meets twice annually with his or her supervisor for a performance appraisal to set objectives and assess achievements. We deem these enhanced evaluations to be most effective in the development of personnel.

Basic Philosophy Regarding Personnel System

A “creative structure” enabling employees to fully exhibit their capabilities
A “bold corporate culture” in which evaluations are reflected in points
A “fair treatment” workplace based on performance recognition

Work Reform

We are undertaking a reform of the way we work, with a focus on reducing working hours and enhancing productivity. In fiscal 2018, we enacted initiatives aimed at increasing the rate of use of annual paid leave among permanent daytime workers, including the establishment of an internal schedule management system, creation of an atmosphere that permits those workers to take paid leave without hesitation, and awareness-raising activities in training sessions. Further, we have introduced the Refreshment Vacation System, which encourages employees to take at least five consecutive-day vacations yearly. In fiscal 2018, the rate of use of annual paid leave at Tosoh reached 77.7%, well above the government’s target of 70%.

This reform has heightened employee workplace awareness and satisfaction and initiated a virtuous cycle that will lead to enhanced efficiency and to Tosoh’s sustained development.

Enhanced Work-Life Balance

Tosoh is helping its employees achieve a work-life balance. For this purpose, the company promotes the reforms of systems and workplace culture.

Allowances for child-rearing and caregiving include leave for these purposes and reduced workloads for employees from pregnancy through child-raising. In fiscal 2018, Tosoh revised the systems to facilitate this utilization. Specifically, we changed our child care leave system so that employees are paid for the first five days of the leave period. We also converted our allowances for family-care sick or injured child-care into paid leave . Moreover, we integrated maternity leave and child care leave and eased the requirements for taking the leave. Therefore, we encourage male employees to participate in child rearing and support employees with small children. In addition, to promote employee awareness and effective utilization of these systems, we have published a guidebook that introduces our internal systems, economic support, and required procedures related to pregnancy, childbirth, and child care.

We will continue with our policy of creating an environment where our employees can work with enthusiasm while having their diverse lifestyles valued.

Kurumin Certification

Kurumin was founded by Japan's Ministry of Health, Labor and Welfare based on Japan’s Act on Advancement of Measures to Support Raising Next-Generation Children and encourages companies to formulate action plans that support their employees in balancing work and family life. Companies that meet standards and achieve their action plan goals receive Kurumin certification. Tosoh received Kurumin certification in September 2016.

Promotion of the Employment and Engagement of Diverse Personnel

We believe that we must work proactively to attract top talent so that we can continue to provide unprecedented value to customers. This belief involves our efforts to promote diversity in the workplace.

We are, for instance, increasing our number of female employees. We’ve hired 106 women in the past five years, such that female employees account for 8.9% of our staff. Our hiring policy follows Japan's Law Regarding Promoting the Participation of Women in the Workplace. Our human resources (HR) efforts in this regard go beyond merely expanding our job categories and hiring more women. We encourage our female employees to participate in the workplace and to aspire to management positions.

Employer Action Plan regarding Promotion of the Active Engagement of Female Employees (April 2014―March 2019)

1. Ensure that the percentage of women employed as career-track employees is 20% or higher.
2. Ensure that the number of women in management positions is 30 or more (3% or higher) by the end of fiscal 2026.
3. Assign female employees to departments with few female employees (including manufacturing and sales departments).

Reemployment of Retirees

To ensure continuity in the transmission of knowledge and skills, we invite our retirees to return to the workplace. Abundant hands-on experience makes these reemployed veteran workers ideal training specialists.

Employment of Disabled People

As part of our ongoing efforts to expand the employment of disabled people, we began to provide such people with transition support for employment in the Nanyo district in fiscal 2018. This has resulted in our hiring of two disabled individuals so far.

Employment of Foreign Nationals

We are hiring employees from abroad to further our development overseas.

Respect for Human Rights

Respect for fundamental human rights and diversity is a pillar of the Tosoh Group Code of Conduct. We inform our employees the strict prohibition of any acts that infringes on human rights such as the use of child labor, human trafficking, slavery or other forms of harassment. We have also established internal and external consultation services and a countermeasures committee to deal with cases of alleged harassment.

As part of our new employee and site-specific training at the Nanyo Complex, we have a lecturer from the Shunan City Board of Education regularly provide training on respect for human rights generally and specifically in the workplace.

Health Promotion Activities

We are developing an array of activities to support the physical and mental well-being of our employees. Our health promotion activities, which treat physical fitness, good lifestyle habits, and mental health as the three pillars of wellbeing, are planned annually and independently by each business location's Health Promotion Committee. Health consultations are arranged with nurses and health outreach workers, and health-related lectures and other events are organized. There are also employee-run walking events and other participatory programs.

We seek the preservation and improvement of employee health and the promotion and maintenance of comfortable workplaces and work environments.

In fiscal 2018, the annual stress-check system that we implemented was administered to 96% of our employees.

Labor and Management

Tosoh and its labor union (2,914 members as of March 31, 2018)  hold a Central Labor Management Council meeting on a monthly basis for the purpose of achieving a common awareness of issues, including the management situation, personnel affairs, and working conditions.

Through specifically themed council meetings, labor and management have forged a favorable, stable relationship built on trust. Going forward, both sides will continue to consider the other’s position, will communicate closely and openly, and will work cooperatively for corporate development and employee empowerment.

Human Resource Development

We implement initiatives for human resource development under which employees can develop their cognitive skills and acquire knowledge and capabilities to assist them in doing their jobs safely and in a sustained manner.

In addition to traditional on-the-job training, we are developing an employee cultivation system to ensure that young employees are able to build a sound foundation of basic skills and that the talents of key personnel are developed.

Our educational programs encompass all levels of employee, from new hires to those in management positions, and we are enriching the educational opportunities available through an emphasis on participation in skill-enhancement programs and the provision of education on compliance. We have established these and other systems that allow employees to develop their own capabilities. We review our training programs and their content as necessary to ensure a positive effect on employees.

Rank-Based Training

Tosoh employees benefit from rank-based training.

For young employees in their first five years at the company, we provide training aimed at enabling them to reinforce and acquire a solid foundation of basic skills as working members of society. We provide first-year employees with introductory training and follow-up training aimed at improving their stances on work. For second- and third-year employees, we provide logical thinking training and presentation training aimed at improving their basic skills as working members of society. For fourth- and fifth-year employees at the company, we provide beginner-level supervisor training, which is aimed at learning problem-solving skills.

For mid-level employees who have worked at the company for more than five years, we systematically provide e-learning training aimed at acquiring business skills (such as finance and business strategy). Finally, for those who will soon be promoted to management positions, we provide training that includes practical, case-based exercises as an opportunity to apply the business skills that they acquired through the e-learning training.

For employees in management positions, we provide training on the roles expected of employees in each rank. We also ensure that they are able to acquire the skills necessary for executive-level positions.

Education by Technological Field

At the Nanyo and Yokkaichi Complexes, we are working to formulate an educational structure that reflects the views of employees at the workplace with the aim of achieving safe, steady, and efficient plant operation.

Training for manufacturing section chiefs is aimed at improving information sharing on issues through opportunities for exchange with top management and people working at other locations. For courses utilizing simulators and experience-based learning, we have introduced practical training at new facilities in our efforts to maintain and improve employees’ skills. We also provide young manufacturing staff with chemical engineering training, which is essential for making improvements, such as the safe, stable operation of chemical plants, product quality, and the conservation of energy. Employees who score excellent results in the post-training achievement test are certified as a Tosoh Senior Chemical Engineer. These programs help employees at our chemical plants develop skills and gain motivation.

Cultivation of Global Human Resources

We are stepping up our efforts to develop the personnel required in the globalization of our business activities. We are providing support for a variety of activities, including the introduction of the Test of English for International Communication examination within the company, the fortification of English- and Chinese-language study courses, and one- and three-month overseas study programs—all for the purpose of developing cognitive skills that will help Tosoh succeed in the global marketplace.

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