Corporate Social Responsibility

Ebara is committed to contributing to society through cutting-edge products and services and responsible corporate citizenship.

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Key CSR Issues: Risk Management Reinforcement & Working Culture Revitalization

A Look-back at the Second Year of our Medium-term Management Plan “E-Plan 2016”

Toichi Maeda
President, Representative Executive Officer

The economic environment of FY 2015 included the continued slow-down of the Chinese economy and the modest recovery of the United States and Europe. In Japan, despite a moderate downward trend in public investment, there were signs of
improvement in private capital investment. Amid these economic conditions, our orders received increased compared to the previous fiscal year (FY)※1 and sales remained about the same. Our operating income also increased due to the strong performance of the Precision Machinery Company. To read further about our financial performance, please read the Ebara Group Integrated Report 2016.
This report covers our progress on one objective of the three-part vision of the company we want to be by March 2020: “We will establish an environment that maximizes the capabilities of each employee, regardless of gender, nationality or other
factors, and adopt a system that properly rewards the exercise of such capabilities.” In addition, we cover topics relating to policy IV. of the Medium-term Management Plan “E-Plan 2016”: “We aim to expand management infrastructure to support global business development.”

Strengthening Risk Management as Infrastructure

As part of our long-term risk management, we are working to make sure all employees understand the Group’s ethics and are able to determine the right way forward individually. We believe it is necessary to share our Group ethics among all employees in order to eliminate or mitigate risk, as a company and in the work of every employee.
Beginning in FY 2014 and continuing into FY 2015, we have nearly completed a round of trainings aimed at overseas subsidiary company management. The training explains our base identity, called the “Ebara Way,” comprised of our founding spirit (passion and dedication), our social mission (corporate philosophy), and the guidelines for how we conduct our business activities (CSR Policy).
Our goal was to first increase the understanding and implementation of the Ebara Way among management and starting in FY 2016, we will continue to deepen the understanding of the Ebara Way among non-management employees.
Our medium-term management plan, E-Plan 2016, is positioned as our plan to realize the Ebara Way in society through our business activities. It is essential to the growth of the Ebara Group that all employees put the Ebara Way into action. Any activity that is contrary to the Ebara Way compromises our ability to fulfill our social mission. We aim to have all employees recognize this and to take responsibility for their actions and have pride in their work.
We developed the Risk Management Guidelines in FY 2015 with the purpose of improving the risk management level of each of our Group companies. Each overseas Group company completed a self-evaluation of their risk management levels regarding areas such as environmental risk, corruption, occupational health and safety, and others, 12 in total. They then created a plan to improve their risk levels by the end of March 2020. Additionally, to minimize day-to-day operational risks, we developed the Guideline for Internal Control and are continuing the development and improvement of our Internal Control processes. Each subsidiary will act on their risk management plans, which in turn will lead to the improvement of Group-wide risk management.

Working Culture Revitalization

Another key point of developing the management infrastructure we need to support global development is the revitalization of our working culture. This is related to the vision of the company we want to be by March 2020 which states, “We will establish an environment that maximizes the capabilities of each employee, regardless of gender, nationality or other factors, and adopt a system that properly rewards the exercise of such capabilities.”
To begin, in FY 2015, we examined the current situation of the participation of women at EBARA Corporation, the parent company of the Group. We found that there is indeed a deep-rooted culture and way of doing business that is based on a Japanese man’s perspective. Therefore, in order to evolve into a working environment that maximizes employee potential by respecting gender and cultural differences, diverse lifestyles and life-stages, we have put an emphasis on revitalizing our working culture, through initiatives aimed at the “reform of awareness and culture,” the “development of systems and environment,” and the “reform of business and visualization of operations,” as stated in our Diversity Declaration. Measures to further actualize the promises made in our CSR Policy, to respect human rights and diversity, and maintain safe and stimulating work environments, are being implemented in FY 2016. One indicator we have set to mark our progress is the ratio of women in management positions, setting a goal of more than 5% by April 2017.
In FY 2015 we introduced to some areas a career management program. We are working to expand this program so that each employee will have the opportunity to create a long-term vision for his or her career and utilize their abilities to realize that vision in a safe and stimulating environment.
Further, building on the occupational health and safety management that each district has developed based on their needs; we are embarking on the development of a Group-wide occupational health and safety system with standardized rules.

Continued Support of the UN Global Compact

We maintain our support of the United Nations Global Compact. The activities described above and in this report are related to the 4 areas of the UN Global Compact.
Our activities are also in line with the goals published as the Sustainable Development Goals (SDGs)※2. Our fluid machinery business is helping craft solutions to societal problems such as the supply and purification of water, development of social infrastructure, and supply of energy with our businesses in pumps, chillers, turbines and compressors. Our environmental engineering business can contribute to resource circulation and a more hygienic society through its waste processing facilities. In addition, our precision machinery business is doing its part to support solving a variety of social issues through its contribution to the development of IT in terms of person-toperson communication, the efficiency of industry, and the accessibility of information.

CSR Action Plan for Executive Officers

In order to thoroughly respond to societal issues like those listed above while tackling internal challenges in FY 2015 we implemented our CSR Action Plan for Executive Officers. We positioned the CSR activities listed in this plan as our most material issues and checked our progress against these issues by reporting to the CSR Committee and implementing the recommendations of third-parties, including outside directors and third-party legal counsel. The action plan is a detailed, tangible plan that expands from the executive officers to the divisions they are responsible for, including group companies.
We aim to utilize the action plan to further define and specify performance indicators and clearer goals to appraise our business activities and contributions to the range of issues facing society. We in turn will continue to fulfill our social responsibilities and improve our corporate activities.

Contribution to society in line with global standards

Demand is continuing to rise for highly efficient equipment, machinery and systems in the areas of energy/water infrastructure, and environment-related facilities. All members of the EBARA Group worldwide are making a concerted effort to contribute to society by providing solutions to these needs with our superior products and services. We will continue to act in a transparent and open manner and in turn achieve high ratings when measured by the United Nations Global Compact and other standards.

※1 Fiscal Year: Unless specifically stated otherwise in this report, all information covers the fiscal year beginning April 1, 2015 ending March 31, 2016.
※2 SDGs: The Sustainable Development Goals are a set of 17 goals with 169 targets adopted by 193 countries in September 2015.