CSR Theme and Key Business Activities

In 2010, with the support of Business for Social Responsibility (BSR), a nonprofit organization, Komatsu undertook a materiality assessment to accomplish the following objectives:

  1. Identify a set of CSR issues and prioritize these CSR issues by their relevance to our business and their importance to our stakeholders
  2. Define a set of global CSR themes and activities

1. Identifying a set of CSR Priorities Relevant to our Core Business

From a list of many CSR issues, we selected those relevant to Komatsu as a construction/mining and industrial equipment manufacturer. We then evaluated CSR issues on their importance to our business. To understand the relevance of CSR issues to our business, we interviewed senior executives across our company, including leaders of regions outside Japan. These interviews helped us to understand the degree to which CSR issues interact with our business priorities and operations. We then evaluated CSR issues on their importance to our stakeholders. To understand the relevance of CSR issues to our stakeholders, we reviewed external reports, viewpoints, and public statements published by governments and policy makers, issue experts and advocates, media, suppliers, and customers. We also took into consideration BSR’s view of stakeholder importance.

◆ Evaluating CSR Issues

We evaluated CSR issues based on the degree of importance to our business shown on the horizontal axis, and the degree of importance to our stakeholders shown on the vertical axis. The CSR issues important to both businesses and stakeholders came to the top right quadrant.

Incorporating CSR Into Management

We narrowed our focus to sixteen material issues across six categories. By focusing on the material issues that are most important to our business and our stakeholders, we believe we are in a strong position to leverage our core strengths as an equipment manufacturer and create lasting social impact going forward.

◆ Our CSR Priorities
Products, Services, and Customers
Products that enhance safety
Responsible marketing and customer care

Human resource development
Safety and health
Respecting employees

Ethics and Governance
Cooperation with stakeholders
Corporate governance and compliance
Compliance with social norms of business partners
Environmentally-friendly products
Environmental efficiency (facilities, such as plants, and job sites)

Human Rights
Respecting human rights
Equal employment

Local Community
Development of local communities
Disaster relief
Improving local residents' quality of life

2. Defining a set of Global CSR Themes

By developing a set of themes around our most important material issues, we implement CSR and meet the needs of our business and our stakeholders. By going through a process of engaging officers in discussions on “What we should do to pursue CSR Priorities” as well as taking in consideration BSR’s view as a third party, we established three core CSR themes to guide our strategy and implementation:

Komatsu's CSR Themes

  • ■ Enhancing Quality of Life -Providing products required by society-
  • ■ Developing People
  • ■ Growing with Society

To support these core themes, we developed key business activities for each theme that outline specifically how we are pursuing CSR at Komatsu. They are almost universal business activities, and can be altered with the change of business conditions.

◆ Our CSR Themes and Key Business Activities

1. Enhancing Quality of Life -Providing products required by society-

  • Providing products and services that contribute to infrastructure development and improve quality of life
  • Improving productivity, safety, and efficiency and enhancing energy conservation through the use of Information and Communication Technology (ICT)
  • Improving environmental efficiency at operation sites and facilities, such as plants
  • Reducing our impact on the environment throughout the product life cycle
  • Enhancing safety for society, customers, employees, and business partners

2. Developing People

  • Contributing to human resource development in local communities
  • Enhancing our employees and suppliers through The KOMATSU Way
  • Enhancing our employees and distributors through "Brand Management"

3. Growing with Society

  • Engaging in dialogue with our stakeholders
  • Providing social contributions through the use of our core technologies and resources (e.g., disaster relief or activities to remove anti-personnel land mines)
  • Contributing to local communities where we do business
  • Strengthening our corporate governance and compliance
  • Promoting compliance with environmental, labor, and social norms within our group and among business partners