Empowering Society with Innovation • Contents • Page Title Applicable GRI Guidelines
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NEC Annual CSR Report 2006 Year ended March 31, 2006 Empowering Society With Innovation • Contents • Page Title Applicable GRI guidelines Contents, Editing Policy 2.10, 2.11, 2.13, 2.17, 2.22, 4.1 01 NEC at a Glance 2.1, 2.2, 2.3, 2.6, 2.8, EC1, EC2, LA1 02 Contributing to Society Through Innovation 1.2 04 Highlights NEC’s Contribution to Solving Social Issues 1.1, 3.7, SO1 10 Platform for CSR-driven Management and CSR Vision 1.1, 2.9, 3.4, 3.6, 3.7, 3.13, 3.17, 3.19, HR1-4, HR6-7, SO1-3, SO7, PR1-3 12 CSR Promotion Activities: Performance and Objectives 1.1, 3.7, 3.13, 3.14, 3.16, 3.17, 3.19, SO1 14 Communication With Stakeholders 3.10, 3.11, 3.12, 3.16, SO1, PR8 16 Strengthening Corporate Governance 3.1, 3.2, 3.4, 3.7, 3.13 17 Protecting Personal Information and Upgrading Information Security 3.13, 3.20, PR3 18 Promotion of Corporate Ethics and Compliance 3.7, 3.10, 3.12, 3.13, HR9-10, SO1-3, SO7, PR1-2, PR9 20 For stakeholders in our markets 20 For Customers 3.10, 3.12, 3.13, SO4, PR1-2, PR8 24 Communication With Shareholders and Other Investors 3.10, 3.12 25 Collaboration With Business Partners 3.10., 3.13, 3.15, 3.16, EN33, HR2-3, SO7 26 For communities 26 Helping Local Communities Around the World –NEC Makes a Difference 2005– 3.10, 3.12, SO1 28 For employees 28 Building Quality Workplaces 3.13, LA10-12, HR1, HR4, HR8, SO4 30 Training and Career Development LA16-17 31 Occupational Health and Safety (OH&S) 3.13, LA5, LA12 32 For the environment 32 Birth of an Eco-friendly Mobile Handset 1.1, 3.12, 3.16, EN19, SO1 34 Extension of the Eco Symbol to IT Solutions 3.16, EN8, EN17, EN19, SO1, PR2, PR6 35 Environmental Impact Reduction 3.16, EN8, EN19, EN30, EN33, EN34 Using RFID-based Supply Chain Reforms 36 Making Maximum Ecological Use of Solar and Wind Power EN2, EN3, EN8, EN15 37 Rice Paddy Restoration Project 3.10, 3.12, SO1 –The Benefits of Communication With Nature– 38 Environmental Management at NEC 3.4, 3.6, 3.7, 3.10, 3.13, 3.16, 3.17, 3.19, EN8, EN17, SO1, PR6 39 Mid-term Environmental Plan –NEC Eco Action Plan 2006 (Results of Fiscal 3.7, 3.10, 3.13, 3.16, 3.17, 3.19, 3.20, EN3, EN4, EN8, EN14-15, EN17, EN19, EN30, EN33, EN34, SO1, PR2 2006 Activities and Fiscal 2007 Mid-term Targets)– 41 Mass Balance of Business Operations EN1-5, EN8, EN10-12, EN22 42 Environmental Accounting 2.18, 3.17, EC13, EN35 42 Environmental Audits and Risk Management 2.20, 3.13, 3.16, EN13, EN16 43 Environmental Communications 2.22, 3.7, 3.10, 3.12, 3.13, 3.16, PR2 44 Ratings and Awards From External Organizations SO4 45 Independent Review of NEC Annual CSR Report 2006 2.20, 2.21, 3.12 Editing Policy NEC views this report as an important communication tool essential to earn- ing the trust of all stakeholders. We have worked to make the layout of this CSR Promotion and Planning Office report as easy to understand as possible. The report provides references to CSR Promotion Unit various websites, indicated by aURL mark, as necessary, where more NEC Corporation details or relevant information are available. 7-1, Shiba 5-chome, Minato-ku, Tokyo 108-8001, Japan [Reference Guidelines] Telephone: +81-3-3798-9837 GRI’s (Global Reporting Initiative) Sustainability Reporting Guidelines 2002: Facsimile: +81-3-3798-6030 Applicable GRI guidelines provided in the above table of contents. Ministry E-mail: [email protected] CSR home page: http://www.nec.co.jp/csr/en of Environment’s Environmental Reporting Guidelines 2003 [Scope of Report] Statements in this report other than historical or current facts are • Period covered by report: fiscal 2006 (the fiscal year from April 1, 2005 to forward-looking statements based on NEC’s assumptions and beliefs in March 31, 2006), including activities before and after fiscal 2006. light of information currently available to it. Accordingly, we caution you • Organizations covered by report: The content solely relates to NEC that these forward-looking statements are subject to changes in business Corporation in certain sections but also includes group companies in other conditions and other factors. sections. For information covering a specific set of NEC and group compa- nies, the scope of such information has been explicitly defined in each rel- This report may also be viewed online at the following URL: evant section. Unless noted otherwise, NEC refers to NEC Corporation and URL http://www.nec.co.jp/csr/en/ its group companies in this report. For further details on environmental activities, please view NEC’s Please feel free to send us inquiries about this report, or your opinions or Annual Environmental Report 2006 at the following URL: questions regarding NEC’s CSR activities. URL http://www.nec.co.jp/eco/en/annual2006 NEC at a Glance ■ Corporate Company name NEC Corporation Facts Address 7-1, Shiba 5-chome, Minato-ku, Tokyo, Japan Established July 17, 1899 Chairman of the Board Hajime Sasaki President Kaoru Yano Capital ¥337.8 billion (As of March 31, 2006) Net sales Non-consolidated ¥2,370.7 billion (Year ended March 31, 2006) Consolidated ¥4,824.9 billion (Year ended March 31, 2006) Number of employees Non-consolidated 23,528 (As of March 31, 2006) Consolidated 154,180 (As of March 31, 2006) Consolidated subsidiaries 356 (As of March 31, 2006) Japan: 142 Overseas: 214 ■ Businesses IT Solutions Business The IT Solutions business provides systems integration that includes software and hardware, such as comput- ers, mainly to government agencies and enterprises. 01 Network Solutions Business The Network Solutions business provides network inte- gration relating to the broadband and mobile communi- cations field, mainly to enterprises and communications services providers. NEC Annual CSR Report 2006 Electron Devices Business The Electron Devices business provides semiconductors, color LCDs, electronic components, etc., mainly to elec- tronic manufacturers. Composition of Sales by Business Composition of Sales by Region * Including inter-segment sales (FY2006) (FY2006) (¥ billion) 2,500 2,000 28% 1,500 1,000 72% 500 0 IT Solutions business Japan Network Solutions business Overseas Electron Devices business Contributing to Society Through Innovation The NEC slogan “Empowered by Innovation” reflects our philosophy that our entire business is aimed at empowering customers with innovation and contributing to a more dynamic society. It is in NEC’s corporate DNA to use the power of innovation to solve issues faced by customers and help our customers achieve their goals and realize their dreams. We build on this by joining with customers to play a part in invigorating society through innovation. This sums up what corporate social responsibility (CSR) at NEC is all about. For NEC, CSR is about building good relationships with customers and various other stakeholders and, at the same time, helping to solve issues that affect society using innovation generated through our business activities. I firmly believe that the NEC group will continue to grow as we work to contribute to the sustainable growth of society. Recently, concerns have also been rising over problems such as crime, terrorism, disease, natural disasters, IT system security, privacy, and food safety. NEC is one of only a handful of companies world- wide that can claim global leadership in fields spanning both IT and network technologies. Our aim is to leverage our expertise to contribute to resolving social issues by taking full advantage of the innovation that defines NEC. Our efforts will play an active role in developing solutions 02 to global environmental problems and in realizing a secure, reliable ubiquitous networking society. This report introduces specific examples: ePassport Systems, which improve security at immigration controls; Submarine Cable Seismic and Tsunami Sensing Systems that form the basis of long-term research in Japan on earthquake pre- diction and disaster countermeasures; and eco-friendly NEC Annual CSR Report 2006 bio-plastics made from recyclable plant fiber, which we are now using in our mobile phone products. In addition to our regular business activities, we also are actively engaged in CSR-driven activities as a respon- sible corporate citizen. For example, since 1999, the NEC Realizing a Secure, Reliable Ubiquitous Networking Kids Internet Safety Program has been teaching children Society Through Innovation all across Japan how to enjoy using the Internet safely Advances in IT and network technology have significantly without falling prey to online crime. This report intro- transformed lifestyles over the past decade. Today, we are duces this program and other CSR-driven activities. seeing the emergence of a “ubiquitous networking soci- ety”—one in which people can communicate with each Strengthening NEC Group Corporate Governance and other and have access to information and a wide range Compliance Systems of services anytime, anywhere, using various communica- CSR has always been an essential aspect of manage- tions devices. There are increasing efforts to build reliable, ment at NEC. During fiscal 2005, we strengthened our secure, and user-friendly, high-speed Next Generation corporate systems to promote CSR activities in three Networks (NGN) for the purpose of supplying the IT and ways: first, strengthen CSR-related risk management; network infrastructure essential to the ubiquitous net- second, promote activities aimed at creating value for working society. society; and, third, promote better communication with Yet even as modern society becomes more conve- stakeholders.