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Social Contribution Activities
Community Based Social Contribution around the World—CSR Activities and their Background in India

Under its philosophy of “being a corporate citizen who is needed in the community,” Komatsu engages in social contribution activities in every part of the globe where it does business. The following report from India describes the efforts of Komatsu India Pvt. Ltd. in that country, one of the world's growing markets.

Report from India

Mr. Subramanian Srikrishn
Report by:
Mr. Subramanian Srikrishn
General Manager, Human Resources & General Affairs Department Komatsu India Pvt. Ltd. (KIPL)

CSR Activities and their Background in India

At Komatsu India Pvt. Ltd. (KIPL) we carry out social contribution activities under the CSR policy formulated in FY2007. Following the policy's formulation by the Komatsu head office, we revised it in 2010 and identified four priority categories: education, employment, social demands, and the environment. We conduct our CSR activities under these categories. Over this period, a major change occurred in the environment surrounding our CSR activities; the Companies Act was amended for the first time in 57 years. Under the amended act, passed in August 2013 and enforced in 2014, companies that meet certain conditions are required to conduct CSR activities.
The act specifically stipulates that companies must allocate at least two percent of their net income over the past three fiscal years to CSR activities in areas specified by the act. Companies are also required to establish CSR committees under their boards of directors, formulate policy, promote activities and disclose information. As for the background of this legislation, India is still facing very large social challenges in areas such as the environment, poverty and inadequate infrastructure, despite the rapid economic growth of recent years. It has been said that India is the first country to legally mandate corporate CSR activities.

Our Enhanced CSR System and Major Results of Activities in FY2014

Following the amendment to the Companies Act, KIPL enhanced its CSR system. The CSR Steering Committee consists of the president, who chairs the committee, and three directors. The committee is responsible for planning, overseeing the initiatives and selection of activities, determining the budget, and disclosing information about activities in the annual report. The CSR Executive Committee is responsible for the execution of the activities, with the company's Human Resources & General Affairs Department serving as the secretariat. This committee promotes concrete actions while reporting the results of these actions to the CSR Steering Committee on a quarterly basis.

KIPL CSR Policy and Transition

KIPL CSR Policy and Transition

CSR Promotion Structure at KIPL

CSR Promotion Structure at KIPL

Results of Activities in FY2014

Results of Activities in FY2014

Supporting a Welding Training School

One of our major initiatives has been to offer technical support for welding at a local technical school. We have been providing this support since FY2008. Students aged 15 or 16 learn about the technology they will need to find a job. In addition to offering the required materials and equipment for the training, KIPL also dispatches two engineers, who provide about 300 hours of instruction each year. Moreover, we recruit excellent students upon their graduation. These efforts are steadily bearing fruit in terms of actual jobs, as evidenced by the significant improvement in the employment ratio of graduates.

Kakamuthu Educational Trust welding technical school in Chennai

VOICE

Mr. Chitti Babu
Mr. Chitti Babu
President, Kakamuthu Educational Trust

Thank you for offering our students such a great opportunity. I would like to express my deep appreciation to KIPL management for their support. Komatsu donated funds to us so that we could purchase materials and equipment. With KIPL's support, we were able to buy a large quantity of welding electrodes and maintain a safe campus environment. The company also gave 30 books, notebooks and stationery to the students and invited them to a reading competition organized by KIPL. Two KIPL engineers visit the school twice a week to provide the students with technical training in 80 key technical categories. The company has also provided training materials for welding over the past three years.
Once again, I am deeply grateful for your support.

Mr. V. Suriya
Mr. V. Suriya
Student, Kakamuthu Educational Trust

I am grateful to Komatsu for offering me the opportunity to learn about welding technology at this school, including arc welding, oxy-acetylene welding, gas welding and cutting. Engineers at Komatsu visit us twice a week to teach us about welding technology and practices. I believe this training will be very useful in my future career.

Activities in Coming Years

In recent years, people in India have developed high expectations for the social role of companies, particularly since corporate CSR activities have been mandated by law. At KIPL, we will steadfastly implement our current CSR activities while continuing to explore what more we can do, including initiatives outside the Chennai region.

DATA Summary of Social Contribution Activities in FY2014 (Komatsu, Consolidated)

Social Contribution Expenditures of the Komatsu Group

  • The social contribution activities in which Komatsu is involved can be divided into six main categories.
    (1) Development of local human resources
    (2) Disaster relief
    (3) Local community support
    (4) Academic and industry-academia collaborations
    (5) Environment
    (6) Culture and sports
    The graph on the right shows the results of CSR activities by subsidiaries in Japan and overseas in FY2014.
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