CSR Report 2010 Aiming to be a trustworthy company in harmony with society Aiming to be a trustworthy company in harmony with society To ensure people’s happiness and welfare, facilitate the sustainable growth of society and create an advanced auto- motive society, each of our employees is striving to put into practice the principles embodied in the DENSO Philosophy and the DENSO Group Declaration of Corporate Behavior in order to meet the expectations and earn the trust of our stakeholders. DENSO Philosophy DENSO Philosophy [Mission] DENSO Group Declaration of Corporate Behavior (see page 16) Contributing to a better world by creating value together with a vision for the future Developing policies Executing plans [Management Principles] Code of Conduct for Company policies DENSO Spirit 1. Customer satisfaction through high-quality products and services DENSO Group Associates Foresight, Credibility, Collaboration (see page 24) (see page 35) 2. Global growth through anticipation of change 3. Environmental preservation and harmony with society Department policies 4. Corporate vitality and respect for individuality [Individual Spirit] Individual goals 1. To be creative in thought and steady in action 2. To be cooperative and pioneering Occupational safety, physical and mental health 3. To be trustworthy by improving ourselves DENSO Group information disclosure policy The DENSO Group Declaration of Corporate Behavior (page 16), formulated to By doing so, we strive to improve management transparency while promote the implementation of corporate social responsibility (CSR), outlines a deepening stakeholders’ understanding of DENSO and building and maintain- commitment to open and fair information disclosure and dialogue. Based on ing relationships of trust. DENSO also endeavors to appropriately refl ect this commitment, DENSO disseminates corporate information such as manage- company evaluations in corporate activities by actively engaging in dialogue ment strategy and business activities with an emphasis on timeliness, fairness with stakeholders. and appropriateness. Basic Policy The DENSO Group sets forth the following basic policy regarding the content, method and system of information disclosure based on a fundamental stance. 1. Content 2. Method of disclosure 3. System of disclosure Information that must be disclosed in a timely Information that must be disclosed in a timely In order to ensure timely, fair and appropriate manner pursuant to laws and regulations such manner pursuant to laws and regulations shall information disclosure, DENSO shall appoint as the Companies Act and the Financial be disseminated through systems for timely persons responsible to oversee the collection, Instruments and Exchange Act shall be disclosure provided by the appropriate management and disclosure of corporate disseminated swiftly in accordance with said securities market in accordance with stipulated information and persons responsible for laws and regulations. laws and regulations, sent to the media in the executing these activities. For all other information, we shall form of news releases and posted on the disseminate that which is deemed important DENSO Group website or the DENSO from the perspectives of business environment Corporation website. and society, that which may impact stakehold- For all other information, we shall select ers and that which is expected to deepen the most appropriate method of disclosure understanding of the DENSO Group. based on consideration of timeliness, fairness and appropriateness, including news releases to the media, press conferences, presentation meetings and website dissemination. ◎Photos of employee family members in CSR report DENSO has included photos of employee family members (aged 5~12 years) on the cover and gate pages of its CSR Report since 2009 to deepen awareness and understanding of CSR activities within the Company. Participants are solicited via the intranet and auditioned before successful applicants are photographed in a studio on a non-school day. The initiative gives employees a closer connection to the CSR Report and increases motivation to read it. DENSO CSR REPORT 2010 1 Contents Editorial Policy President’s Message 03 ◎Selection of content (degree of importance/completeness) Business Overview and Economic Report 05 • In addition to the guidelines listed below, a questionnaire on socially responsible investment (SRI) and opinions and recommendations solicited during dialogues Special Feature: Unique CSR Activities 08 with stakeholders played a role in the selection of the report’s content. • The Special Feature (pages 8-13) introduces activities under the theme “DENSO’s Unique CSR Activities,” using a draft of ISO26000 (international standard for 1. Expanding Environmental Preservation Activities in social responsibility in corporations) and AA1000 (standard concerning compre- Respective Countries and Regions hensive accounting and information disclosure developed by the UK-based 2. Nurturing Global Manufacturing Personnel Institute of Social and Ethical AccountAbility) as references. 3. Efforts to Contribute to Society through Employee Participation • Our basic stance outlined in each section remains unchanged from fi scal 2009. [Scope of the report] Companies and business locations covered: DENSO Group refers to DENSO CSR Management 14 Corporation and its domestic and overseas Group companies (comprising 184 consolidated companies), except certain sections where notes indicate that a more Basic Stance / Promotion Structure / CSR Framework / narrow scope applies. DENSO Group Declaration of Corporate Behavior / Period covered: This report focuses on activities carried out in fi scal 2010 (April Long-term Activity Plan / Fiscal 2010 Activities / 1, 2009 to March 31, 2010), but also includes some information about past and Review of Progress / recent activities to help readers develop a more complete understanding of the content. Highlights & Lowlights of CSR Activities in Fiscal 2010 / [Guidelines used as reference] Stakeholder Dialogue in China / Corporate Governance / · GRI (Global Reporting Initiative) Sustainability Reporting Guidelines 3rd edition (G3) Compliance / Risk Management / Information Security · Japanese Ministry of the Environment Environmental Reporting Guidelines 2007 · Japanese Ministry of the Environment Environmental Accounting Guidelines 2005 Report on Social Responsibility 28 * Comparative tables for this report and the GRI Guidelines are available on our CSR Report site. http://www.globaldenso.com/ * [Scope of the Report] and [Guidelines used as reference] are the same as fi scal 2009. Responsibility to Customers 29 • Please refer to our Annual Reports and fi nancial statements in the “Investors” section of our website for details of our economic report. Responsibility to Employees 33 http://www.globaldenso.com/en/investors/ Responsibility to Shareholders and Investors 40 ◎Ease of understanding (clarity, comparability) • This report has been designed primarily for an audience with a high degree of Responsibility to Suppliers 41 interest in CSR. • This report makes a clear distinction between the DENSO Group (“DENSO”) and Responsibility to Global and Local Communities 43 DENSO Corporation (“DENSO Corporation” or “the Company”) regarding respective initiatives and data. The DENSO Group consists of DENSO Corporation and all consolidated Group companies in which the Company’s investment Environmental Report 48 exceeds 50%. • For the purpose of comparability, data is provided on a year-by-year basis. Environmental Management 49 • There were no changes with a signifi cant impact on comparability in fi scal 2010. Prevention of Global Warming 57 ◎Credibility • DENSO newly listed negative as well as positive information concerning CSR as Resource Recycling 65 of fi scal 2009 in a section entitled “CSR Highlights & Lowlights” (page 20). • DENSO has not included a third-party assurance on our CSR activities and data since there is still no established procedure or global standard for such assess- Control and Reduction of Environmentally ment. However, we continue to receive the opinions of third parties and other Hazardous Substances 67 experts via dialogue to increase the transparency and credibility of our CSR activities. Cooperation with Society 70 Supplementary Data 74 Third Party Opinion 77 Issued by: Nobuaki Katoh, President and CEO Editor: Sadahiro Usui, Managing Offi cer Issue date: November 2010 (scheduled issue of the next report: November 2011; previous report: December 2009) DENSO CSR REPORT 2010 2 President’s Message AAmidmid a sshakeuphakeup ofof thethe automobileautomobile industry,industry, DDENSOENSO wwillill mmeeteet sstakeholdertakeholder eexpectationsxpectations bbyy mmaximizingaximizing itsits ccollectiveollective kknowledgenowledge aandnd capabilitiescapabilities basedbased onon corporatecorporate socialsocial responsibilityresponsibility (CSR).(CSR). Nobuaki Katoh, President and CEO Major transformation of automobile industry The global automobile industry underwent signifi cant transformation opportunity to contribute to an automotive society that has less in 2009. Demand in the automobile market plummeted amid eco- environmental impact. Also, DENSO provides products that lead to nomic decline triggered by the fi nancial crisis, and DENSO was improvement in fuel consumption in cars using diverse sources of confronted with the most diffi cult conditions since its founding. While power, from development of engine injection control to drive control on