Management Report

CSR Management


Kuraray Group is implementing compliance activities without limiting itself to merely complying laws and regulations in a narrow sense, to create an organizational climate in which executives and employees act by high ethical standards individually as “good citizens” and ensure corporate transparency and fairness. “Our Commitment” states the principles of our conduct wich we should observe in doing our business. “Kuraray Group Code of Conduct” serves as guidelines to implement the commitment in performing day-to-day work. The top person of Kuraray Group has declared that we will comply with laws and regulations and “Our Commitment” under any circumstances. In order to share these principles and commitments among all Kuraray Group personnel throughout the world, Compliance Handbook has been compiled containing the foregoing declaration by the top person and explanations of “Kuraray Group Code of Conduct.” The handbook is written in eight languages, Japanese, English, German, Chinese, Hangul, Russian, Flemish and Czech, and has been distributed to group employees.
We plan to appoint compliance officers at Plants, Offices and Laboratories of Kuraray and group companies and to organize a compliance committee in each region to effectively and sustainably promote and implement compliance activities within the group as a whole.

Whistleblower System

As a whistleblower system to prevent and to identify and troubleshoot any compliance violation at an early stage, Kuraray Group Employee Counseling Room has been set up for all employees of domestic Kuraray group including part-time employees, contract employees and dispatched staffs. Whistleblower contact windows are also provided at major subcidiaries in Europe and North America. In recent years, globalization of Kuraray Group has accelerated rapidly through M&A and other activities and the group is building a system at subcidiaries that do not have such contact windows yet, allowing all employees of the group inside and outside Japan to access a contact window

Number of Consultations at Kuraray Group Employee Counseling Room
FY 2011 2012 2013 2014 2015
Number of Consultations 2 5 1 1 3
On-the-Spot Inspection by Fair Trade Commission

On March 1, 2016, Fair Trade Commission of Japan made an on-the-spot inspection at Kuraray, involving competitive bidding on textile products purchased by Acquisition, Technology and Logistics Agency, Defense Ministry. Responding sincerely to this fact, we fully cooperate in the inspection and strive to more strictly implement compliance enforcement.

Risk Management

Within Kuraray Group, risks are managed vertically by Divisions, Offices, Plants, and affiliates by identifying, assessing and responding to intrinsic risks. Risks are also managed horizontally by corporate staff in charge, assessing pure risks that cause only negative impacts when such risks become realities, such as natural disasters and violations of laws and regulations, for cross-sectional management. Additionally, material risks that need to be managed by the management level are identified among those risks that are identified in these management activities, to implement countermeasures on a priority basis. The president of Kuraray directs a group risk management policy to various organizations each year.
From 2016, "Basic Policy" as a long-term and continual policy for risk management of Kuraray Group and "Annual Tasks" to be focused in each year in the light of recent social situations and trends of Kuraray and other companies are developed separately. This new approach allows Kuraray Group to respond to changes in the risk environment more flexibly and quickly while maintaining our basic approach to risk management.

Kuraray Group Policy on Risk Management Policy for 2016

Basic Policy
  • (1) We will prevent illegal, unfair or improper practices which amount to betray confidence of society.
  • (2) We will prevent all accidents which threaten health and security of our employees, local communities, customers and business partners, including occupational incidents, process accidents, environmental pollution and product accidents.
  • (3) In case of an event which causes serious negative impacts on our business or society, we will take actions to ensure confidence of society and health and safety, and to continue or quickly restore our normal business operation . In such situation, we will give priority to ensuring confidence of society and health and safety over continuing or restoring our normal business operation.
Annual Tasks
  • (1) Reexaming risks of material violation of laws and regulations.
  • (2) Implementing countermeasures to reduce business risks caused by natural disasters.
  • (3) Reviewing risks in upper stream of supply chain including source of raw materials.
  • (4) Strengthening countermeasures against quality problems.

Quality Management

Within Kuraray Group, quality management is carried out by implementing quality management systems such as ISO 9001 at each manufacturing site. The divisions have built a mechanism for each of their businesses to supply products that incorporate the requirements of customers. The corporate CSR Division undertakes activities aiming at reinforcing quality management within the entire group.
Among Kuraray’s divisions, beginning 2012, the EVAL Division has been continuing its ICS activity aimed at enhancing customer satisfaction, and is improving the quality of its activities such as by undertaking cross-sectional improvements. Beginning Fiscal 2015, the GENESTAR Division has launched a similar activity. The Quality Assurance and Product Safety Working Team inaugurated in 2014 is taking up common themes for the entire Kuraray Group. In Fiscal 2015, the team carried out two themes, ① Information exchange on the management of outsourced processing and suggestions for improvement and ② Summary and analysis and information sharing for survey from our customers on quality management.
In Fiscal 2016, the scope of the ICS activity will be expanded further. A handbook for sharing the approach of “quality management” will be prepared to disseminate these activities widely. As a new activity, “Saiteki Activity (meeting to discuss quality management)” will be started for the Business divisions and CSR division in unison to improve the activities of quality management at each division.

Handling of Product Complaints

Within Kuraray Group, information on complaints and claims received from the customers is managed by its divisions, so responses to customers can be promptly made and action is taken swiftly to prevent the recurrence of same flaws. Material complaints and claims are handled in accordance with the “Regulations on Producit Liability-related Accident Responce and Quality Complaint Report.”
In Fiscal 2015, no product recalls or accidents that cause severe damage to health or damage to property such as fire were reported.