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Our Approach to CSR

Dialogue with Our Stakeholders

Creating a Variety of Dialogue Opportunities

Engaging in dialogues with our stakeholders is essential for determining the relative effectiveness of Komatsu's management and business in meeting social needs. Every department that has direct contact with our stakeholders is creating opportunities to lay out our company's current situation, receive feedback, and engage in useful discussions.

StakeholdersPurposesExamples of Meetings and ActivitiesFrequency
CustomersCollaborate to realize customers' goals and fulfill corporate responsibility
Brand Management ActivitiesDaily
Collaborate to resolve issues in society and in the regions we operate, participate in local activities Daily
Business PartnersPresident explains business performance, policies and strategiesVarious meetings for Midori-kai3 times a year
Conduct safety patrols and provide opportunities such as for support of efforts for obtaining certification As needed
Sales DistributorsPresident explains business performance, policies and strategiesDistributor meetings in each region (U.S., Europe, China and Southeast Asia) Annually
EmployeesPresident explains business performance, policies and strategiesMeetings with the president
Semiannually
Sharing Q&A session content with global employees via the intranetAs needed
Dialogue with the labor union and employee representatives to improve the workplace environmentRegular Meetings between Management and Labor UnionAs needed
Local CommunityExplanation of initiatives related to operations, the environment and safetyMeetings with residents of the local community near the plantAs needed
Activities to resolve local issues based on employee suggestionsVoluntary activities by employeesDaily
Industry-Academia Collaboration PartnersExchange of ideas and opinions between representatives such as university professors and the Chief Technology OfficerKomatsu Science and Technology Collaboration CouncilBiannually
InvestorsCEO and CFO explains business performance, policies and strategiesIR Meeting in Japan, U.S. and EuropeJapan: Daily U.S. and Europe: Annually
Respond to inquiries and SRI surveys Daily
Individual ShareholdersCEO and CFO explains business performance, policies and strategiesShareholders Meeting2—3 times a year, held in major cities in Japan
Plant tours and explanation of operationsPlant tours for shareholdersAbout twice a year in Japan

Opinion of an External Stakeholder

Progress in Komatsu's CSR Activities and Focus on Contribution to Local Communities

Mr. Dunstan Allison-Hope
  • Mr. Dunstan Allison-Hope
  • Managing Director, Advisory Services,
    Business for Social Responsibility (BSR)

Komatsu joined BSR in June 2010, and our initial partnership with the company involved establishing strategic priorities and creating an approach to Komatsu's most important sustainability issues. An updated version of these priorities are shown in the materiality section of this report.

Since then, BSR has worked with Komatsu to make progress on these priorities and address new stakeholder expectations that have arisen in recent years.

For example, during 2014 we worked with Komatsu to undertake a corporate-wide human rights impact assessment to identify potential risks and opportunities in Komatsu's key business units and geographies.

BSR concluded that Komatsu's overall human rights risk profile is “medium-low risk.” This is due to the fact that Komatsu's main risks are upstream in the supply chain and downstream through product misuse by its customers.

Komatsu also has several opportunities to advance human rights through its business, particularly through its mining business working in local communities to provide skilled jobs and increased economic benefits.

During 2012, BSR engaged internal Komatsu stakeholders and global mining companies to identify how Komatsu can most effectively meet the CSR expectations of key mining sector customers. The review emphasized the importance of understanding local regional expectations, and the role of Komatsu's product innovation to address environmental impacts that directly influence the local social license to operate, such as air emissions, dust, and noise.

It was for this reason that an engagement between BSR and Komatsu to review the company's social contribution program resulted in an emphasis on local contribution activities. BSR also facilitated a stakeholder engagement for Komatsu at its Osaka plant.

During this time we have witnessed Komatsu make progress in other areas, too. For example:

  • • Conducting regular CSR Steering Committee meetings, with senior Komatsu executives setting CSR direction for Komatsu;
  • • Developing an internal global network on CSR by identifying CSR representatives from major subsidiaries, and sharing leading practices;
  • • Implementing a new CSR procurement guide, including conflict minerals; and,
  • • Establishing ambitious energy saving objectives at major manufacturing plants.

Komatsu has a clear grasp of its CSR priorities, risks, and opportunities.

However, as a global company operating and selling in many markets, the main challenge now is implementing CSR strategies at the local level. This implies increasing the capacity of local staff to address CSR issues. It also means ensuring CSR factors are effectively integrated into company policies and procedures, especially in higher risk regions and organizational functions.