The OSG Group is working towards the development of a more sustainable society by maintaining and developing healthy relationships with all stakeholders, including shareholders, customers, business partners, employees, and local communities. As members of society, we will strive to exist in harmony with society through social contribution activities and the promotion of mutual understanding with stakeholders.
Promoting Diversity
Initiatives for Employing People with Disabilities
OSG Active, a special subsidiary of parent company OSG, promotes employment of persons with disabilities and engages in activities which contribute to our local community. More specifically, OSG Active holds roughly 10 lectures mostly in eastern Mikawa each year for companies, support organizations, as well as special needs school students and their parents. We are also active in creating opportunities for companies and support organizations to discuss challenges they face as well as observe OSG Active employees on the job at OSG's factories. In FY2023, we were able to arrange 38 opportunities for participants to observe and exchange views. Moreover, as the only company participating in the Toyokawa City-sponsored Liaison Council Supporting Employment of Persons with Disabilities, we have conveyed our approach and ideas from a corporate perspective regarding employment of persons with disabilities, which has contributed to increasing the overall employment rate of persons with disabilities in Toyokawa City. The statutory employment quota is set be raised incrementally from the current 2.3% to 2.5% in 2024, and then to 2.7% in 2026. The OSG Group will continue to actively contribute to our community and society based on the premise of achieving and maintaining the statutory employment quota, which is one of our responsibilities to society.
Percentage of Employees with Disabilities
VOICE
Typical jobs performed by OSG Active employees include operating a forklift to dispose of chips, transporting components between processes, and inspecting machined drill holes. Such tasks were previously performed by OSG employees. No new tasks have been created for OSG Active. Special subsidiaries handling jobs to be performed in this way are very rare. OSG Active is an OSG-style special subsidiary. The company understands each and every person's individuality and entrusts each individual with work that matches his or her characteristics. Recently, the abilities of OSG Active employees are being recognized more and more. We have seen an increase in requests from all sorts of workplaces asking us to cooperate with their operations. So that our employees feel the joy of thriving, shining, and working, we place a high importance on actually observing, experiencing, and sensing the characteristics and skills of each and every employee. I believe the most important thing which we do is to provide an environment where employees are able to grow and ultimately establish themselves in the workplace.
President OSG Active Co., Ltd. Hidenori Tanaka
Promoting Active Participation by Women
OSG has strived to maintain a pleasant work environment based on the proposition of promoting "diversity and inclusion," enabling our diverse human resources to capitalize on their individual personalities and character as well as demonstrate their abilities to the fullest regardless of nationality, gender, ethnicity, sex, disability, or other traits. This approach also recognizes that women's empowerment in the workplace is an important issue. Our aim is to provide the means for each and every woman to demonstrate her abilities to the utmost in her career by continuing to work passionately and assuredly.
Number of female employees and ratio of female managers
So that we may create a workplace environment that enables our employees to achieve even greater success as well as balance their work and family life, we developed an action plan to be implemented by March 31, 2025, in accordance with the Act on the Promotion of Women's Active Engagement in Professional Life and Act on Advancement of Measures to Support Raising Next-Generation Children.
＜Goal＞
Increase the ratio of women among assistant managers or higher positions to 7% by FY2025
＜Initiatives＞
Arrange seminars that promote women's careers
Regularly hold seminars that provide the skills and knowledge for female employees to enhance their careers
Spread the word about our Comeback Entry Program
Actively spread the word to inform employees about OSG's Comeback Entry Program established to create an environment that makes it easier for employees who have left the company for childrearing or caregiving to return
VOICE
I am in charge of handling surveys concerning sustainability. It is difficult to respond to questionnaires with questions about ESG as such work requires putting together responses while cooperating and communicating with various departments. Even so, I intend to do my best by joining forces with other members of the Questionnaire Team. Last year, I was transferred from the Global Sales Department where I had worked for over 10 years to the Procurement Department's Main Material Team. Such a big change was disorienting, but I have been able to put to use the knowledge and network of people that I built up in my previous position as I devote myself to my current work. Being involved in a new field also shows me skills that I would like to acquire, so I hope to actively study and absorb what I learn in order to improve myself. My senior coworkers are role models showing others how to balance a career with raising children. They have been very supportive and encouraging. Because a parent's environment also changes as children grow, I want to build my own career as I make use of OSG's flex-time work and other programs. It is my hope to continue working hard at my job so that I can also be a role model showing others who wish to achieve a good work-life balance an illustration of how they can find a way to structure their work at OSG.
Main Material Team Procurement Group Procurement Dept. Resource Management Center Sustainability Team Strategic Planning Division Ayako Ban
Promoting Active Participation of Diverse Human Resources
Recruitment
OSG does not discriminate on the basis of nationality in our hiring practices. We hire employees on the same terms and conditions as Japanese regular employees, and staff from various nationalities thrive in different departments. OSG Group has sites in 33 countries around the world; therefore, many employees also contribute significantly in our local subsidiaries in their home countries.
Trainees from Overseas
OSG has actively promoted development of our human resources on a global scale with a progressive approach of accepting interns and trainees from group companies around the world.
Since 2023, we have welcomed two trainees from Taiwan and one from Germany for long-term training in Japan. We are also actively bringing to Japan short-term trainees, welcoming 11 trainees from overseas and 14 from Japan for short-term programs in FY2023.
The purpose of these programs is to promote the advancement of employees serving at group companies set up around the world as well as to pass on to trainees advanced engineering skills and know-how during their training at our mother factory in Japan. After the trainees return home, they assimilate the culture, knowledge and skills learned in Japan with local values. These individuals play a significant role in not only training but mentoring local employees. Trainees act as a bridge linking employees in Japan with employees at local subsidiaries, actively contributing to raising the level of engineering and production at these sites.
Furthermore, we also provide internships to foreign students from universities overseas. These internships provide students with a chance to think about how they may design their careers.
Through these sorts of initiatives, OSG promotes exchange among our diverse human resources and helps them grow.
Such programs are a boost to the development of our global human resources. As we move forward, OSG will support the growth of each and every one of our employees as we aim to develop into a global corporation.
Intercultural Exchange in Dormitory Life
A gathering of dormitory residents
When trainees arrive from overseas for training in Japan, OSG provides employee dormitories for their stay. These dormitories are also home to young Japanese employees who live too far away from their homes to commute on a daily basis. These young Japanese employees and the foreign trainees enjoy the communal life that they share. Trainees from other countries get to experience Japanese culture in their daily lives as well as enjoy interacting with other trainees from countries around the world.
The support that young Japanese employees provide to these foreign trainees enables them to gain precious experiences. Everyone living in the dorms participates in regular dorm meetings as well as social gatherings, and have the opportunity to enjoy a variety of events. The Human Resources & General Affairs Department as well as other relevant departments work together to provide continuous support for an environment that allows all residents to engage in cross-cultural exchange and enjoy a comfortable living situation.
Human Resource Development
Human Resource Development Philosophy
In 2013, we introduced a new personnel system with the aim of enabling our employees to develop in a way that maximizes our value as a company while creating a corporate culture that emphasizes personal development and embracing challenges. We believe that our employees have unlimited potential and are an indispensable part of the company. Building on our philosophy with regards to human resource development, we strive to expand and improve our employees' capabilities and help them to develop based on the seven qualities required for advanced manufacturing.
＜Seven Qualities Required for OSG Employees＞
Globality：
As the world's leading manufacturer of cutting tools, we must be constantly aware of our position as a member of a global society and demonstrate the sensitivity to respond to cultures, languages, and customs around the world.
Spirit of challenge：
We must understand dreams and aspirations, never fearing failure as we continue to set and try to achieve ambitious targets.
As we move forward, we have to think on our feet to adapt to changes while generating profit.
Conceptualization：
In order to contribute to manufacturing industries around the world as a cutting tool manufacturer, we must be able to see the essence of objects, formulating advanced concepts and plans that also align with company policies and management goals.
Communication：
In order to actualize the idea of "tools and communication", we must foster strong relationships based on trust, communicate intentions and information with speed and accuracy, and collaborate with team members both within and outside of the company.
Leadership：
Leadership allows us to guide the members of our team in the right direction and demonstrate the boundless potential of collective effort.
A leader can gain the complete trust of their team and shows humanity, sincerity and a sense of responsibility as the situation demands.
Followership：
Followership means providing active support for leadership in order to demonstrate the boundless potential of collective effort while having the awareness and capacity to collaborate with leaders and organizations to achieve the objectives of the workplace.
Innovation：
Innovation allows us to create new value by pursuing the development of cutting tools to provide products and services that meet the real needs of our customers.
Human Resource Development System
To develop leaders capable of adapting during a time when working styles and ways of thinking are increasingly diversified, OSG provides e-learning courses on communication, management, harassment, attentive listening, and other subjects. This is training that our personnel are able to put to use to better perform their jobs. In addition, we also have more than 150 self-development distance learning courses. Group training is also offered to help employees understand what kind of personnel OSG views as ideal as well as the requirements for promotion. These are part of our initiatives for developing the next generation of leaders. All our training aligns in the same trajectory as set out in our Medium-Term Management Plan and Human Resources Development Policy. It is our aim to establish a program that enables our human resources to continue to develop.
New Employee Training Program
Set out on the theme of "creating a starting point for growth in the workplace," OSG Group's new employee training program provides introductory as well as specialized job-specific training. We have a curriculum that emphasizes a mindset for new employees, who just graduated from high school, to help them become mentally prepared and behave as working adults, and to provide new employees just out of university with the mental preparedness and knowledge to produce results in business. The specialized training is arranged according to department assignment and focuses on trainees acquiring practical skills.
Practical Training for New Employees: The Tool Olympics
The Tool Olympics is an event providing new engineering employees with an opportunity for practical training. Participants are divided into teams each using a different tool: taps, drills, end mills, and indexable tools. Working together, the teams perform cutting tests, measure tools and workpieces, and analyze OSG and other companies' work. At the end of the training, the teams present their results. The aim of the Tool Olympics is for participants to acquire three skills: personal skills, business skills, and technical knowledge, during the approximately one-month program. Although it is not possible in such a short period of time to fully acquire the personal skills necessary for teamwork and communication or the business skills one uses as a working member of society, the Tool Olympics supports new employees' growth as they engage with senior colleagues and cooperate with peers as they engage in the practical exercises. The training also allows participants to acquire engineering knowledge while operating machining and measuring tools. They are able to get a feel for the actual sound and vibration emitted during cutting, compare the chips generated, and analyze tools close-up. The Tool Olympics is a unique learning experience where new employees are able to polish the skills they need to perform as OSG employees while gaining experience completing tasks by a deadline in cooperation with their teammates and acquiring precious experience that only hands-on training provides.
Careers and Reskilling
The OSG Group promotes reskilling so that our employees learn the knowledge and skills necessary for operations, which allows for the appropriate personnel to be assigned to the appropriate position. Our aim is to establish a system that better links employees' careers and business operations in order to improve the productivity of each and every individual.
OSG Group administers a career planning program so that our employees themselves think about their own careers and periodically submit their aspirations detailing where they want to be in three, five, and ten years. Along with a certification incentive program through which we support our employees in improving the skills that will help them prepare to boost their own careers, we are seeking to create a distance learning program that functions interactively and allows employees to choose what they want to learn to improve themselves from more than 150 courses, as well as to create a system helping employees to find fulfillment and motivation in their work.
Building a Better Working Environment
Promotion of work-life balance
Working from Home System
Working from home system started (officially introduced) in April 2022. We are working to improve the workplace environment and operations to enable working from home, and have institutionalized it as one of the flexible work styles. OSG is operating the system with the following two objectives.
＜Home Working System Objectives＞
1. Achieving an optimal work-life balance (childcare / nursing care)
2. Enabling the company to continue operating during emergencies (natural disasters, pandemics, etc.)
Flextime System
We have introduced a flextime system for positions in divisions such as technology, development and the back office, where improved efficiency and productivity can be achieved by providing employees with discretion over their working hours. This has been a popular addition to our existing systems of reduced working hours for employees with childcare and nursing responsibilities because it facilitates our employees' work and enables them to work in a way that fits their individual lifestyles.
Our flextime system operates between 6:00 am to 10:00 pm. The core hours depend on the time of year and are either 10:00 am to 2:50 pm or 10:30 am to 3:20 pm.
Childcare leave System
The Childcare Leave Law will be revised on April 1, 2022, and we are conducting educational activities and training for employees. We support the promotion of childcare leave for men as well as women, and have a system in place to provide individual explanations of the childcare leave system. We strive to create an environment that allows employees to balance work and family life. Since the introduction of the system, we have been enhancing the content of the system beyond the legally stipulated standards, and we have continued to improve and expand the system.
＜Childcare Leave System Expansion＞
1. System of reduced working hours to allow for fertility treatment (paid leave)
Employees can receive special paid leave and reduce their working hours by up to two hours per day in order to receive fertility treatment.
2. System for adjusting work hours
Parents working at sites where flextime is not available may apply to adjust their working time in the increment of ten minutes by up to two hours per day until their child finishes Grade 6 (extended) at elementary school.
3. Extended eligibility period for childcare leave
The eligibility period for childcare leave has been extended until children reach two years of age.
4. Extended eligibility period for exemption from overtime
The eligibility period for exemption from overtime has been extended until children enter elementary school.
5. Expanded system of reduced working hours for employees with childcare needs
The eligibility period for the system of reduced working hours for employees with childcare need has been extended until children finish third grade of junior high school.
Data on personnel taking childcare leave
Item
FY2019
FY2020
FY2021
FY2022
FY2023
Childcare leave
Men
No. of eligible employees taking leave［people］
1
2
3
19
21
Percentage of eligible employees taking leave［%］
2
4
5
37.3
44.6
Avg. number of days taken［days］
120
64
60
23
42
Percentage of employees returning to work［%］
100
100
100
100
100
Women
No. of eligible employees taking leave［people］
15
8
14
11
2
Percentage of eligible employees taking leave［%］
100
100
100
100
100
Avg. number ofdays taken［days］
420
509
426
403
308
Percentage of employees returning to work［%］
93
88
100
100
100
Promoting Male Employees' Taking Childcare Leave
Ratio of male employees taking childcare leave
Following the revision of the Child Care and Family Care Leave Act in 2022, the percentage of male employees taking childcare leave reached 44% in FY2023, enabling OSG to achieve our 2025 target ahead of schedule. We are committed to actively informing our employees about this program and posting information about childcare leave on internal bulletins. In addition, we make sure to confirm the intentions of our male employees who have welcomed a new baby about whether they would like to take childcare leave, and offer individual consultations to those who so desire. As part of our materiality challenges, we set a new key metric measuring achievement for our target of increasing the rate of male employees taking childcare leave in FY2024 and beyond (P. 26). Even though the environment is more and more conducive to male employees taking childcare leave as awareness among all employees increases, we feel sufficient information has still not been provided to supervisors and workplaces where there are potential childcare leave candidates. It is also evident that we face a challenge in improving workplace understanding for both male and female employees, including about how workloads might be distributed while an employee is away on childcare leave. In addition, some employees are concerned about a decrease in income and the impact on performance evaluations if they take childcare leave, so we are working to enhance both potential childcare leave participants' and their supervisors' understanding of the program by providing explanations of the performance assessment system as well as salary increase and promotion schedules. We believe these initiatives will help increase the percentage of employees taking childcare leave. We will continue to strive to ascertain the current status and challenges facing those who would like to take childcare leave and bolster our commitment to creating an environment where even more employees who wish to avail themselves of this program are able to gain the understanding of their workplaces without worrying about such hindrances.
So that we may create a workplace environment that enables our employees to achieve even greater success as well as balance their work and family life, we developed an action plan to be implemented by March 31, 2025, in accordance with the Act on the Promotion of Women's Active Engagement in Professional Life and The Act on Advancement of Measures to Support Raising Next-Generation Children.
◆Targets for Increasing the Ratio of Male Employees Taking Childcare Leave
＜Target: Ratio of male employees taking childcare leave＞
2024: 50%
2027: 75%
2030: 100%
＜Initiatives＞
Promote awareness about the policy of promoting male employees taking childcare leave
Clearly communicate the policy to foster a workplace culture where male employees can easily take childcare leave
Raise awareness about the newly established system and expand the number of employees using it
Engage in activities that raise awareness among all employees about the newly-adopted childcare leave system with the aim of expanding use of both this and other programs
Individually approach eligible employees
Individually approach employees eligible to take childcare leave and encourage them to do so
Continue to issue notices internally detailing the percentage of those taking childcare leave
Periodically issue internal notifications announcing the ratio of employees taking childcare leave and share progress being made in promoting this initiative
Comments from Men Taking Childcare Leave & Their Supervisors
Material R&D Group
Research & Development
Center Yuta Minami
Please share with us your experience taking childcare leave and the challenges that OSG's childcare program faces.
There weren't really any difficulties because I had continually been providing my supervisor with daily reports about my work and built up relationships with my supervisor and others in the workplace. However, I have heard stories of other workplaces where an employee wanted to take childcare leave but faced challenges because their workload could not be fully handed over to someone else or the employee was unable to gain the understanding of those around him. It seems to me that the workplace environment and colleagues' understanding significantly impact the hurdles one must overcome to take childcare leave. I thought spending a lot of time with my child would help me to become aware of my role as a father quicker. Also, I think women should focus on their recovery after they give birth, so I think it's okay to take a year of childcare leave if there are no financial or work-related issues hindering that. I think the challenges to taking childcare leave are understanding in the workplace and workplace headcount management. Even though my boss willingly approved my childcare leave, I honestly felt a bit guilty. If OSG is going to aim for 100% of its male employees taking childcare leave in the future, then I think that it will be necessary to manage the number of workplace personnel taking that into account. Also, having actually been in the position of taking childcare leave, I realized there are still people who think childcare leave is just like taking a break from work. I hope that people will better understand what childcare leave is for and how difficult it is to take care of a child.
Could you please candidly share with us your thoughts about the time when your subordinate consulted you about taking childcare leave and the challenges such requests may Q pose in the future?
Yuta Minami consulted me just after I had heard about a male employee in another workplace taking childcare leave, which made me think that we might receive a similar request in our own workplace. I didn't have any negative feelings about his request. One thing that I was concerned about was the duration of the leave. When he told me personally that he wanted to take one month off, I was relieved, to be honest. With him taking a one-month leave, we were able to manage by preparing in advance and getting other employees to cover for him. However, I don't think we could've done it if the duration had been six months or a year. I think the challenges that workplaces face are the understanding of the workplace and the duration of the childcare leave. It is crucial to create a supportive atmosphere, so employees don't have to hesitate to take leave. I regret that, as a supervisor, I should have better understood and been able to recommend the childcare leave system. If an employee would like to take a six-month childcare leave sometime in the future, then we will need to consider efficiency improvement of multiple tasks as well as securing temporary personnel to substitute for the employee taking leave. To make that happen, I realize we will need to prepare on a daily basis for how to respond to such situations, so we can cover for anyone who is absent.
Manager
Material R&D Group
Research & Development Center Kimiya Ishida
Nursing Care Leave System Expansion
We have continued to improve and expand our nursing care leave system since its introduction. More detailed information is provided below.
＜Nursing Care Leave System Expansion＞
1. 365-days nursing care leave
In consideration of the trend towards longer periods of nursing care, we provide 365 days of nursing care leave rather than the 93 days stipulated by law.
2. Elimination of three year period for reduced working hours for employees with nursing care needs
Under the previous regulations, employees were able to use the system of reduced working hours for employees with nursing care needs twice or more during the three year period from when they began using the system. In consideration of the trend towards longer periods of nursing care, the three year period has been eliminated following a review.
Expansion of Eligibility for Taking Annual Paid Leave by the Hour
OSG has previously allowed employees who need to care for a child in the third grade or younger, a family member within the second degree who requires nursing care or support, and need to go to the hospital or receive treatment for an injury or illness to take annual paid leave by the hour. From April 2022, with the aim of improving work-life balance, the scope of coverage has been expanded to all employees to take annual paid leave by the hour.
Increased Maximum Reserve for the Expired Paid Leave Reserve System
As part of our existing efforts to reduce lost paid leave, we have operated a reserve system for paid leave, which expires two years after it is received, while also aiming to increase the rate of paid leave taken each year. Reserve paid leave can be taken in order to receive medical treatment in cases of personal injury or illness and to provide nursing care to family members through the medical leave system. Previously, up to four days per year could be kept in reserve up to a maximum cumulative total of 30 days, however, these initiatives were further improved and expanded in April 2020.
＜Medical Leave System Expansion＞
1. Expansion of maximum amount of reserve to 40 days
2. Expansion of eligibility conditions
Under the previous eligibility conditions, employees had to be unable to work due to a non-work related injury or illness for seven consecutive days or more. This has been reduced to one day or more in order to make the system easier to use.
Percentage of annual paid leave taken (%)
Safety and Health Management
OSG declared itself a "Global Company," "Healthy Company," and "Environmentally Friendly Company" in 1996. In 2014, we adopted the tagline "Shaping your dreams" as our brand identity. We believe that creating an environment where each and every employee is cheerful, happy, and energetic in their daily work and contributing to the sustainable development of the community, society, and the Earth based on our philosophy of "being a public entity of society" will create a prosperous future. As we approach our 100th anniversary, we will continue to pursue wellbeing and give shape to our dreams through human resource development and manufacturing as a global company that shines even brighter.
As a health company, OSG is committed to further corporate growth and social development by implementing health promotion activities that leave no one behind from the perspective of employees, such as disease prevention and support for balancing work and medical treatment.
Support for Balancing Medical Treatment and Work
At OSG, we have established a company policy regarding support for balancing medical treatment with work.
The feelings of the person concerned are given priority.
Employees are not required to disclose the name of their condition.
A flexible approach is taken without excessive adherence to rules. (Burden should not be placed on the person concerned.)
In order to implement this company policy, a number of employees have been involved in the creation of various systems to support employees who are receiving medical treatment.
Support system including industrial physicians, public health nurses, nurses (occupational health professionals) and companies
A system to facilitate contact with occupational health professionals has been implemented at each of our locations.
Review of internal notification procedures (reducing the burden on the person receiving treatment)
Occupational health professionals handle a range of internal notification procedures in order to reduce the burden placed on the person receiving treatment.
Creation of tailored plans for returning to work by occupational health professionals and human resources personnel.
Careful consideration is given to the condition of the person receiving treatment, and every effort is made to support them as much as possible.
We constantly strive to put our employees first and enable them to balance medical treatment with work.
Health Mission 25 Initiatives
OSG has Implemented health and safety management initiatives through our Health Mission 25 program, which aims to achieve our targets of reducing both metabolic syndrome and smoking rates to 25% or less. Each business office worked out and implemented health improvement measures toward the goal of achieving both of these levels during our FY2023 annual health checkups. Some of the specific measures included using an app to encourage walking, hiking, as well as conducting questionnaires about smoking and secondhand smoke. We will continue to work on initiatives that raise employees' awareness of their health and create an environment conducive to staying healthy.
Smoking & metabolic syndrome rates
OSG Recognized as 'Excellent Health Management Company 2024 - White 500'
OSG Corporation was recognized as an Excellent Health Management Company (Large Company Division) 2024 White 500 under the Excellent Health Management Company Certification System jointly administered by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi. This program honors companies that take the initiative to practice health management. Of the companies selected as Excellent Health Management Companies (Large Company Division), the top 500 companies practicing particularly outstanding health management are recognized as the White 500.
In 1996, OSG Corporation declared that we would be a "Healthy Company." We have furthered a variety of initiatives to promote employee health, providing health-conscious meals, offering employees health management services and stress checks, and, together with our in-house public health nurses, providing exercise support, mental health care, as well as implementing other health-improvement measures and policies. These sorts of continuous activities have garnered high regard, leading to the White 500 certification.
Safety Management
Safety and Health Committee
Under the leadership of the Headquarters Safety and Health Committee, in which all executives participate, each committee continues to work together with all employees to promote safety and health. In the event of an accident, the Safety Management Committee takes the lead in pursuing the causes and countermeasures at the site where the accident occurred, and shares the information with the company to prevent the same accident from happening again. The Health Management Committee supports the health status of each employee and promotes health activities with the aim of creating a workplace environment where employees can feel healthy and secure.
Company-wide Safety and Health Committee Structure
Safety Education
OSG conducts risk assessments, offers safety and health education, and holds zero accident meetings to raise employees' awareness of safety.
The safety and health training that we provide includes management training, external training, and hands-on training in collaboration with outside organizations. In 2016, we launched hands-on safety workshops with the aim of raising our employees' awareness of safety through actual experiences of hazardous work. This sort of training helps compensate for the lack of experience of our younger employees and the decline in ability to perceive risks that has accompanied automation of production processes. These sorts of proactive initiatives have led to a decrease in job-related accidents.
Number of Occupational Accidents
Respect for Human Rights
The OSG Group and all employees both in Japan and abroad work with respect for human rights and are committed to following the letter and the spirit of all relevant laws, regulations and international rules while taking a proactive approach to the creation of a sustainable society with sound values. We ensure a work environment that will neither offend nor discriminate by race, belief, skin color, sex, religion, nationality, language, physical appearance, wealth, or birthplace. We must be particularly mindful of sexual harassment, which we strongly disapprove of as a company. When such problems occur, we must quickly investigate the case, provide aid to the person making the complaint, and act decisively to prevent any recurrences.
Human Rights Policy
OSG Corporation and all the group companies (hereinafter referred to collectively as "OSGs") respect the"International Bill of Human Rights" (Universal Declaration of Human Rights and International Covenant on Human Rights), the International Labor Organization (ILO)'s "Declaration on Fundamental Principles and Rights at Work" and the United Nation's "Guiding Principles on Business and Human Rights," which define the fundamental human rights that everyone in the world should have, and establish "OSG Group Human Rights Policy" (hereinafter referred to as "Policy"). Each one of the members of OSGs shall promote activities related to human rights based on this Policy.
Some of the main activities undertaken at our company in order to promote respect for human rights are outlined below.
1. Awareness activities
Training for new employees includes a session on the topic of "Noticing Prejudice" in order to provide an opportunity to engage with awareness of human rights. We also aim to raise awareness of issues relating to human rights among mid-level employees, particularly those in management positions, by providing opportunities to attend external seminars.
2. Initiatives to ensure fair selection during recruitment
Fairness in the recruitment process is a key measure of a businesses' respect for human rights, and OSG employees are provided with comprehensive awareness training before working in positions relating to recruitment or conducting interviews.
3. Initiatives to improve the working environment
Human rights issues are addressed in our in-house newsletter, and every effort is made to prevent the occurrence of issues in the working environment.
4. Initiatives to prevent harassment
OSG has set out harassment prevention rules with the goal of preventing various forms of harassment. We have communicated to employees the company's role, management's responsibility, the availability of consultation systems, and other aspects that help prevent harassment. We are striving to maintain an environment that is pleasant and comfortable to work in. Along with raising awareness about harassment prevention, we will further expand our consultation system, increasing the number of counselors along with other enhancements, so that the company is able to respond quickly to any potential cases.
We are making active efforts to promote human rights awareness among all of our employees and will continue to carry out this important work. OSG is also a member of the Industrial Federation for Human Rights in Aichi and engages in activities to promote and improve human rights awareness.
The Sustainable Development of the OSG Brand
Pursuit of Customer Satisfaction
Technical Seminars
Even as the OSG Group actively strives to achieve digitalization, we place a high value on the connections we have formed with customers. We not only regularly hold in-person seminars but also online seminars so that participants can attend no matter where they are. These online seminars take advantage of the benefits such a platform offers, such as providing archives of the seminars and preparing multiple timeslots so that as many of our customers as possible may attend. In addition, online events and services have spread rapidly since the pandemic, which seems to have diversified points of contact that we have with customers. We are now able to quickly gather feedback from customers voiced across various platforms and make use of this precious feedback to improve our services and quality as well as develop new and better products. We will continue to make use of the advantages that both face-to-face and online platforms offer, and provide our customers with useful information tailored to their needs.
Communication Dial
Inquiries that we receive through our Communication Dial service range from basic questions to quite difficult ones relating to actual machining processes. Depending on the nature of the inquiry, it may be necessary to check with our design and development divisions or contact the sales team to arrange a visit to the customer. We are committed to providing the best service to each and every customer. We also have an FAQ webpage, which we create and update based on analyses of the more than 100 inquiries and feedback received daily from customers. We are striving to create an environment that will enable us to respond to our customers' diverse needs by promoting digitalization in addition to the existing Communication Dial services. With the pace of change accelerating, we will continue to maintain our customer-first approach. We want our clientele to always regard OSG as a company they can consult and rely on to solve any issues they face, no matter what problems arise.
VOICE
I am in charge of the seminars, always keeping in mind that I have to 'be close to each and every customer.' Even though the seminar might be the same, the backgrounds and years of experience of the customers participating in the seminar vary. When I am conducting a seminar, I make it a point to always think about what and how I should convey information so that everyone will enjoy the seminar. Our seminar questionnaires and the Communication Dial service provide valuable opportunities for us to learn more about our customers. My aim is to listen to what our customers are saying, respond to their needs, and provide support that gives them even greater satisfaction.
Customer Support Team Global Marketing Department Mahiro Ishiguro
Quality Management System
Quality Policy
1. Offering the best quality which satisfies our customers and society
2. Promoting the standardization of operations
3. Preventing progression of faulty products
4. Shipping products on schedule
5. Improving the quality control circle and 5S methodology
OSG Quality Certification System
OSG has a proprietary quality assurance system certification program in place to ensure consistent quality worldwide, and we have strived to maintain and improve the level of quality at our group companies both in Japan and abroad. The quality certification system certifies that quality management from the arrival of raw materials (or materials for which regrinding has been requested) to product shipment and after-sales service is equivalent to that of the mother factory operated by OSG Japan.
Evaluation is performed by certified quality auditors from OSG Japan in accordance with the Three Reality Principle ("going to the actual site", "seeing the actual goods", and "seeing the actual situation"). The systems in place to ensure that the quality required by customers is provided on a consistent basis and the capability of employees to correctly evaluate products are evaluated. This is done through quality audits based on evidence submitted through communication with those in charge and those carrying out the work. Our audits use a five-tier evaluation system to check and determine whether the quality assurance system passes categories defining product quality, quality inspection skills, and quality improvement capabilities. For example, product quality is evaluated by randomly sampling mass-produced products and measuring them to determine whether they are produced according to the dimensions specified in drawings as well as ascertaining base materials and grinding quality.
We will continue to further expand these activities in order to ensure that OSG's standards of manufacturing are maintained at our group companies around the world.
VOICE
My main job is to audit the quality systems of our domestic and overseas group companies. With production sites around the world, it is important to maintain stable quality regardless of whether the site is located in Japan or abroad, and to ensure consistent quality no matter who produces the item or where it is produced. However, this is by no means an easy task. Behind the stable quality lies the diligent accumulation of each and every task. I am always thinking about how we can maintain reproducibility in this process and providing assistance in constructing quality assurance mechanisms through these audits of quality systems.
Quality Assurance Group Quality Assurance Department Naoya Fujishiro
Automation of Inspection & Packaging to Eliminate Human Error
Many mistakes and defects in the final inspection and packaging process are often due to human error. Therefore, we are striving to enhance the efficiency of these processes and utilize equipment with the goal of eliminating misjudgments and defects. Streamlining packaging materials simplifies the work and enhances its efficiency as well as reduces plastic waste and costs associated with such materials. In the past, we used to visually check the shipping label affixed to a package and the enclosed delivery statement. Now, thanks to adoption of a character collating system, we have been able to reduce erroneous packaging and shipping. In addition to promoting automation of visual product inspections, we have implemented initiatives to eliminate irregularities in manual inspection accuracy and reduce the risk of blade chipping or other accidents occurring during manual work. Replacement of the previous visual inspections, which were conducted using a microscope, with image inspections has made it possible to inspect tools in more detail. As these images may be stored, this database also offers the benefit of bolsters traceability.
The design/development, manufacture and servicing (supply of technical data, technical guidance, calibration) of cutting tools, forming tools, measuring tools and non-wire coater bar.
As an essential player contributing to the global manufacturing industry, the OSG Group implements initiatives to provide solutions to human rights, environmental, and other challenges as well as to fulfill our social responsibility across the entire supply chain.
OSG carries out fair and open transactions based on the principle of free competition and in accordance with the values of globality and openness. In order to establish relationships leading to mutual growth, OSG and its suppliers make efforts to deepen mutual understanding and build relationships of mutual trust.
Compliance with Laws, Regulations, and Social Demands
Our procurement activities are carried out in compliance with laws, regulations, and social norms. In accordance with social demands, we also develop our procurement activities with due consideration to the environment, human rights, labor standards, health and safety, and information management.
Consideration for the Environment
In order to protect the environment, we prioritize the purchase of eco-friendly products (green procurement activities) and the use of suppliers who implement environmental conservation measures in their manufacturing processes.
CSR Procurement
Corporate Social Responsibility (CSR) Procurement aims to minimize social and environmental impacts across the supply chain. This includes issues related to human rights, labor standards, corruption, environmental protection, and other important matters affecting our communities. Stronger demands by society are being placed on companies to implement such efforts.
The OSG Group CSR Procurement Guidelines outline key actions that both the OSG Group and our suppliers should take to promote sustainable development.
OSG Group CSR Procurement Guidelines
The OSG Group CSR Procurement Guidelines enhance suppliers' understanding of what is expected of them. This enables them to better adhere to these guidelines in their operations. Additionally, it supports the implementation of CSR activities throughout the supply chain.
The OSG Group has conducted CSR self-assessment surveys based on our OSG Group CSR Procurement Guidelines. The purpose has been to ascertain the status of CSR initiatives across the supply chain as well as have suppliers develop a better understanding of the OSG Group's CSR procurement approach and efforts. We are enhancing communication with our suppliers so that we jointly promote CSR activities which will help us create a sustainable society.
CSR Self-Assessment Survey
A survey was conducted of OSG Group's principal suppliers in Japan to better understand the status of such efforts.
Time frame: September～October 2023
Target: Key suppliers of raw and other materials
KPI
Target
Results for fiscal 2022
Results for fiscal 2023
Survey return rate
80% or higher
82%
84%
No. of companies surveyed
-
117 companies
139 companies
No. of companies responding
-
96 companies
117 companies
The survey was analyzed and evaluated, and feedback provided.
We will continue to improve the survey, giving consideration to expanding the target range as well as revising survey questions.
FY2023 average score
OSG Policy of Responsible Raw Material Procurement
Concerns have been raised about the mining of tin, tantalum, tungsten, gold, cobalt, mica and other minerals in conflict-affected and high-risk areas. The process of mining such minerals as well as their trade may involve child labor, forced labor, or other human rights violations as well as raise issues relating to labor standards. There is also apprehension that the proceeds from such mining may also serve as a source of funds for armed groups in conflict-affected regions.
OSG Group has made a commitment to engage in responsible mineral procurement. In accordance with OECD Due Diligence Guidance, we have been identifying risks so that we may address such issues.
In addition, as our suppliers appreciate these initiatives, we have also asked them to cooperate with surveys detailing the history on how the minerals have been procured. We request that they source minerals from certified smelters not party to any such issues.
Green Procurement
We aim to provide our customers with environment-conscious products in accordance with our Environmental Policy of making our entire supply chain more environmentally friendly.
We seek the cooperation of our suppliers in the establishment of an environmental guarantee system and the provision of environmental guarantees of procured products in order to allow us to act as a business that provides eco-friendly products through our development, design, production, and distribution processes in all of the regions in which we operate.
Green Procurement Guidelines
Our Green Procurement Guidelines are an important set of policies that consider the full life cycle of commercial products and relate to the management of chemical substances in supply chain products and information provision. In order to prioritize the procurement and purchase of materials and products with a reduced impact on people and the environment when procuring materials required for production, we work together with our business partners in areas such as the management of chemical substances contained in products and self-evaluation of green procurement activities. We are also undertaking initiatives to promote the integration our green procurement activities with those of our suppliers.
Partnership Building Declaration
OSG drafted and announced our Partnership Building Declaration aimed at strengthening partnerships through the promotion of collaboration, coexistence, and co-prosperity with our supply chain partners and entrepreneurs seeking to create value.
Ministry of Economy, Trade & Industry confers Japan-India Institute for Manufacturing (JIM) accreditation on OSG India Academy
Trainees acquiring skills as they operate equipment
OSG India Academy was accredited by Japan's Ministry of Economy, Trade & Industry, certifying our in-house training school opened in India as a Japan-India Institute for Manufacturing (JIM). JIM are institutes where trainees may acquire the concepts and skills necessary for Japanese-style manufacturing under the Manufacturing Skill Transfer Promotion Programme agreed upon by the governments of Japan and India in November 2016. These institutes aim to develop India's human resources in the field of manufacturing.
At OSG India Academy, trainees learn Japanese-style manufacturing while they actually operate machinery during the one-year training program. Five trainees graduated from the Academy's first class, four of whom are working at OSG India. The second class currently has six trainees participating in the program. In the future, we are planning to have OSG employees from Japan serve as instructors to mentor trainees in learning approaches to product inspection and quality, reconditioning techniques, and other skills.
OSG actively strives to develop human resources both in Japan and globally, and contributes to developing India's manufacturing industry and strengthening the economic environment.
OSG supports the Shuzo Challenge, Japan Tennis Association Project for junior men's tennis athletes
OSG supports the Shuzo Challenge, a segment of the Mt. Fuji Project launched by the Japan Tennis Association Project, to improve the skills of junior men's tennis athletes
Shuzo Challenge is a tennis camp run by Shuzo Matsuoka, director of the Japan Tennis Association and deputy general manager of the High Performance/Junior Development Department. At the camp, Shuzo Matsuoka and his staff provide expert coaching in skills and tactics as well as the ways of building physical and mental capacity to achieve the aim of developing men's tennis junior players' skills and competence to play at a world-class level in the future.
This year we launched a new initiative, an intensive training camp held from April 29 to May 1, 2024, at OSG's tennis courts (in Toyokawa City) and accommodations. Under the guidance of coaches from the Japan Tennis Association, this camp aimed to prepare players for upcoming international tournaments. Six junior players, who were either in their second or third year of middle school and had experience participating in and winning international matches, took part in the camp.
Through our promotion of sports, OSG works to create an environment where each and every one of our employees is able to devote themselves to their daily work in a cheerful, enjoyable, and energetic manner. Based on the principle that companies should be institutions for the benefit of society, we are aiming toward a prosperous future and working to make a sustainable contribution to the community, society, and the planet.
President Osawa and Shuzo Matsuoka in the OSG Headquarters lobby
Junior players at the intensive training camp
OSG supports the San-en NeoPhoenix
Aspiring to create a prosperous future and contribute to sustainably developing our local community, OSG supports the San-en NeoPhoenix professional basketball team and has endorsed its management philosophy of "Making San-en region a place where people smile and thrive." In addition, OSG hosts a variety of events during games that we sponsor. In 2023, we invited facilities for people with disabilities around Toyokawa City to the games. At the games, booths were set up selling products produced at these facilities and cookies made there were distributed as gifts to visitors. As an official sponsor, OSG supports these games with the hope that such opportunities bring joy to the users of these facilities as they interact with customers and sell their products. In 2023, we sold produce grown under solar panels at OSG's dedicated solar power plant, which operates as an off-site power purchase agreement service, for the first time.
Basic Philosophy
The OSG Group is working towards the development of a more sustainable society by maintaining and developing healthy relationships with all stakeholders, including shareholders, customers, business partners, employees, and local communities. As members of society, we will strive to exist in harmony with society through social contribution activities and the promotion of mutual understanding with stakeholders.
Promoting Diversity
Initiatives for Employing People with Disabilities
OSG Active, a special subsidiary of parent company OSG, promotes employment of persons with disabilities and engages in activities which contribute to our local community. More specifically, OSG Active holds roughly 10 lectures mostly in eastern Mikawa each year for companies, support organizations, as well as special needs school students and their parents. We are also active in creating opportunities for companies and support organizations to discuss challenges they face as well as observe OSG Active employees on the job at OSG's factories. In FY2023, we were able to arrange 38 opportunities for participants to observe and exchange views. Moreover, as the only company participating in the Toyokawa City-sponsored Liaison Council Supporting Employment of Persons with Disabilities, we have conveyed our approach and ideas from a corporate perspective regarding employment of persons with disabilities, which has contributed to increasing the overall employment rate of persons with disabilities in Toyokawa City. The statutory employment quota is set be raised incrementally from the current 2.3% to 2.5% in 2024, and then to 2.7% in 2026. The OSG Group will continue to actively contribute to our community and society based on the premise of achieving and maintaining the statutory employment quota, which is one of our responsibilities to society.
Typical jobs performed by OSG Active employees include operating a forklift to dispose of chips, transporting components between processes, and inspecting machined drill holes. Such tasks were previously performed by OSG employees. No new tasks have been created for OSG Active. Special subsidiaries handling jobs to be performed in this way are very rare. OSG Active is an OSG-style special subsidiary. The company understands each and every person's individuality and entrusts each individual with work that matches his or her characteristics. Recently, the abilities of OSG Active employees are being recognized more and more. We have seen an increase in requests from all sorts of workplaces asking us to cooperate with their operations. So that our employees feel the joy of thriving, shining, and working, we place a high importance on actually observing, experiencing, and sensing the characteristics and skills of each and every employee. I believe the most important thing which we do is to provide an environment where employees are able to grow and ultimately establish themselves in the workplace.
President OSG Active Co., Ltd.
Hidenori Tanaka
Promoting Active Participation by Women
So that we may create a workplace environment that enables our employees to achieve even greater success as well as balance their work and family life, we developed an action plan to be implemented by March 31, 2025, in accordance with the Act on the Promotion of Women's Active Engagement in Professional Life and Act on Advancement of Measures to Support Raising Next-Generation Children.
＜Goal＞
Increase the ratio of women among assistant managers or higher positions to 7% by FY2025
＜Initiatives＞
Regularly hold seminars that provide the skills and knowledge for female employees to enhance their careers
Actively spread the word to inform employees about OSG's Comeback Entry Program established to create an environment that makes it easier for employees who have left the company for childrearing or caregiving to return
I am in charge of handling surveys concerning sustainability. It is difficult to respond to questionnaires with questions about ESG as such work requires putting together responses while cooperating and communicating with various departments. Even so, I intend to do my best by joining forces with other members of the Questionnaire Team. Last year, I was transferred from the Global Sales Department where I had worked for over 10 years to the Procurement Department's Main Material Team. Such a big change was disorienting, but I have been able to put to use the knowledge and network of people that I built up in my previous position as I devote myself to my current work. Being involved in a new field also shows me skills that I would like to acquire, so I hope to actively study and absorb what I learn in order to improve myself. My senior coworkers are role models showing others how to balance a career with raising children. They have been very supportive and encouraging. Because a parent's environment also changes as children grow, I want to build my own career as I make use of OSG's flex-time work and other programs. It is my hope to continue working hard at my job so that I can also be a role model showing others who wish to achieve a good work-life balance an illustration of how they can find a way to structure their work at OSG.
Main Material Team Procurement Group Procurement Dept. Resource Management Center
Sustainability Team Strategic Planning Division
Ayako Ban
Promoting Active Participation of Diverse Human Resources
Recruitment
OSG does not discriminate on the basis of nationality in our hiring practices. We hire employees on the same terms and conditions as Japanese regular employees, and staff from various nationalities thrive in different departments. OSG Group has sites in 33 countries around the world; therefore, many employees also contribute significantly in our local subsidiaries in their home countries.
Trainees from Overseas
OSG has actively promoted development of our human resources on a global scale with a progressive approach of accepting interns and trainees from group companies around the world.
Since 2023, we have welcomed two trainees from Taiwan and one from Germany for long-term training in Japan. We are also actively bringing to Japan short-term trainees, welcoming 11 trainees from overseas and 14 from Japan for short-term programs in FY2023.
The purpose of these programs is to promote the advancement of employees serving at group companies set up around the world as well as to pass on to trainees advanced engineering skills and know-how during their training at our mother factory in Japan. After the trainees return home, they assimilate the culture, knowledge and skills learned in Japan with local values. These individuals play a significant role in not only training but mentoring local employees. Trainees act as a bridge linking employees in Japan with employees at local subsidiaries, actively contributing to raising the level of engineering and production at these sites.
Furthermore, we also provide internships to foreign students from universities overseas. These internships provide students with a chance to think about how they may design their careers.
Through these sorts of initiatives, OSG promotes exchange among our diverse human resources and helps them grow. Such programs are a boost to the development of our global human resources. As we move forward, OSG will support the growth of each and every one of our employees as we aim to develop into a global corporation.
Intercultural Exchange in Dormitory Life
When trainees arrive from overseas for training in Japan, OSG provides employee dormitories for their stay. These dormitories are also home to young Japanese employees who live too far away from their homes to commute on a daily basis. These young Japanese employees and the foreign trainees enjoy the communal life that they share. Trainees from other countries get to experience Japanese culture in their daily lives as well as enjoy interacting with other trainees from countries around the world.
The support that young Japanese employees provide to these foreign trainees enables them to gain precious experiences. Everyone living in the dorms participates in regular dorm meetings as well as social gatherings, and have the opportunity to enjoy a variety of events. The Human Resources & General Affairs Department as well as other relevant departments work together to provide continuous support for an environment that allows all residents to engage in cross-cultural exchange and enjoy a comfortable living situation.
Human Resource Development
Human Resource Development Philosophy
In 2013, we introduced a new personnel system with the aim of enabling our employees to develop in a way that maximizes our value as a company while creating a corporate culture that emphasizes personal development and embracing challenges. We believe that our employees have unlimited potential and are an indispensable part of the company. Building on our philosophy with regards to human resource development, we strive to expand and improve our employees' capabilities and help them to develop based on the seven qualities required for advanced manufacturing.
＜Seven Qualities Required for OSG Employees＞
As we move forward, we have to think on our feet to adapt to changes while generating profit.
A leader can gain the complete trust of their team and shows humanity, sincerity and a sense of responsibility as the situation demands.
Human Resource Development System
To develop leaders capable of adapting during a time when working styles and ways of thinking are increasingly diversified, OSG provides e-learning courses on communication, management, harassment, attentive listening, and other subjects. This is training that our personnel are able to put to use to better perform their jobs. In addition, we also have more than 150 self-development distance learning courses. Group training is also offered to help employees understand what kind of personnel OSG views as ideal as well as the requirements for promotion. These are part of our initiatives for developing the next generation of leaders. All our training aligns in the same trajectory as set out in our Medium-Term Management Plan and Human Resources Development Policy. It is our aim to establish a program that enables our human resources to continue to develop.
New Employee Training Program
Set out on the theme of "creating a starting point for growth in the workplace," OSG Group's new employee training program provides introductory as well as specialized job-specific training. We have a curriculum that emphasizes a mindset for new employees, who just graduated from high school, to help them become mentally prepared and behave as working adults, and to provide new employees just out of university with the mental preparedness and knowledge to produce results in business. The specialized training is arranged according to department assignment and focuses on trainees acquiring practical skills.
Practical Training for New Employees: The Tool Olympics
The Tool Olympics is an event providing new engineering employees with an opportunity for practical training. Participants are divided into teams each using a different tool: taps, drills, end mills, and indexable tools. Working together, the teams perform cutting tests, measure tools and workpieces, and analyze OSG and other companies' work. At the end of the training, the teams present their results. The aim of the Tool Olympics is for participants to acquire three skills: personal skills, business skills, and technical knowledge, during the approximately one-month program. Although it is not possible in such a short period of time to fully acquire the personal skills necessary for teamwork and communication or the business skills one uses as a working member of society, the Tool Olympics supports new employees' growth as they engage with senior colleagues and cooperate with peers as they engage in the practical exercises. The training also allows participants to acquire engineering knowledge while operating machining and measuring tools. They are able to get a feel for the actual sound and vibration emitted during cutting, compare the chips generated, and analyze tools close-up. The Tool Olympics is a unique learning experience where new employees are able to polish the skills they need to perform as OSG employees while gaining experience completing tasks by a deadline in cooperation with their teammates and acquiring precious experience that only hands-on training provides.
Careers and Reskilling
The OSG Group promotes reskilling so that our employees learn the knowledge and skills necessary for operations, which allows for the appropriate personnel to be assigned to the appropriate position. Our aim is to establish a system that better links employees' careers and business operations in order to improve the productivity of each and every individual.
OSG Group administers a career planning program so that our employees themselves think about their own careers and periodically submit their aspirations detailing where they want to be in three, five, and ten years. Along with a certification incentive program through which we support our employees in improving the skills that will help them prepare to boost their own careers, we are seeking to create a distance learning program that functions interactively and allows employees to choose what they want to learn to improve themselves from more than 150 courses, as well as to create a system helping employees to find fulfillment and motivation in their work.
Building a Better Working Environment
Promotion of work-life balance
Working from Home System
Working from home system started (officially introduced) in April 2022. We are working to improve the workplace environment and operations to enable working from home, and have institutionalized it as one of the flexible work styles. OSG is operating the system with the following two objectives.
＜Home Working System Objectives＞
Flextime System
We have introduced a flextime system for positions in divisions such as technology, development and the back office, where improved efficiency and productivity can be achieved by providing employees with discretion over their working hours. This has been a popular addition to our existing systems of reduced working hours for employees with childcare and nursing responsibilities because it facilitates our employees' work and enables them to work in a way that fits their individual lifestyles.
Our flextime system operates between 6:00 am to 10:00 pm. The core hours depend on the time of year and are either 10:00 am to 2:50 pm or 10:30 am to 3:20 pm.
Childcare leave System
The Childcare Leave Law will be revised on April 1, 2022, and we are conducting educational activities and training for employees. We support the promotion of childcare leave for men as well as women, and have a system in place to provide individual explanations of the childcare leave system. We strive to create an environment that allows employees to balance work and family life. Since the introduction of the system, we have been enhancing the content of the system beyond the legally stipulated standards, and we have continued to improve and expand the system.
＜Childcare Leave System Expansion＞
Data on personnel taking childcare leave
Promoting Male Employees' Taking Childcare Leave
Following the revision of the Child Care and Family Care Leave Act in 2022, the percentage of male employees taking childcare leave reached 44% in FY2023, enabling OSG to achieve our 2025 target ahead of schedule. We are committed to actively informing our employees about this program and posting information about childcare leave on internal bulletins. In addition, we make sure to confirm the intentions of our male employees who have welcomed a new baby about whether they would like to take childcare leave, and offer individual consultations to those who so desire. As part of our materiality challenges, we set a new key metric measuring achievement for our target of increasing the rate of male employees taking childcare leave in FY2024 and beyond (P. 26). Even though the environment is more and more conducive to male employees taking childcare leave as awareness among all employees increases, we feel sufficient information has still not been provided to supervisors and workplaces where there are potential childcare leave candidates. It is also evident that we face a challenge in improving workplace understanding for both male and female employees, including about how workloads might be distributed while an employee is away on childcare leave. In addition, some employees are concerned about a decrease in income and the impact on performance evaluations if they take childcare leave, so we are working to enhance both potential childcare leave participants' and their supervisors' understanding of the program by providing explanations of the performance assessment system as well as salary increase and promotion schedules. We believe these initiatives will help increase the percentage of employees taking childcare leave. We will continue to strive to ascertain the current status and challenges facing those who would like to take childcare leave and bolster our commitment to creating an environment where even more employees who wish to avail themselves of this program are able to gain the understanding of their workplaces without worrying about such hindrances.
So that we may create a workplace environment that enables our employees to achieve even greater success as well as balance their work and family life, we developed an action plan to be implemented by March 31, 2025, in accordance with the Act on the Promotion of Women's Active Engagement in Professional Life and The Act on Advancement of Measures to Support Raising Next-Generation Children.
◆Targets for Increasing the Ratio of Male Employees Taking Childcare Leave
＜Target: Ratio of male employees taking childcare leave＞
2024: 50%
2027: 75%
2030: 100%
＜Initiatives＞
Clearly communicate the policy to foster a workplace culture where male employees can easily take childcare leave
Engage in activities that raise awareness among all employees about the newly-adopted childcare leave system with the aim of expanding use of both this and other programs
Individually approach employees eligible to take childcare leave and encourage them to do so
Periodically issue internal notifications announcing the ratio of employees taking childcare leave and share progress being made in promoting this initiative
Comments from Men Taking Childcare Leave & Their Supervisors
Material R&D Group
Research & Development
Center
Yuta Minami
There weren't really any difficulties because I had continually been providing my supervisor with daily reports about my work and built up relationships with my supervisor and others in the workplace. However, I have heard stories of other workplaces where an employee wanted to take childcare leave but faced challenges because their workload could not be fully handed over to someone else or the employee was unable to gain the understanding of those around him. It seems to me that the workplace environment and colleagues' understanding significantly impact the hurdles one must overcome to take childcare leave. I thought spending a lot of time with my child would help me to become aware of my role as a father quicker. Also, I think women should focus on their recovery after they give birth, so I think it's okay to take a year of childcare leave if there are no financial or work-related issues hindering that. I think the challenges to taking childcare leave are understanding in the workplace and workplace headcount management. Even though my boss willingly approved my childcare leave, I honestly felt a bit guilty. If OSG is going to aim for 100% of its male employees taking childcare leave in the future, then I think that it will be necessary to manage the number of workplace personnel taking that into account. Also, having actually been in the position of taking childcare leave, I realized there are still people who think childcare leave is just like taking a break from work. I hope that people will better understand what childcare leave is for and how difficult it is to take care of a child.
Yuta Minami consulted me just after I had heard about a male employee in another workplace taking childcare leave, which made me think that we might receive a similar request in our own workplace. I didn't have any negative feelings about his request. One thing that I was concerned about was the duration of the leave. When he told me personally that he wanted to take one month off, I was relieved, to be honest. With him taking a one-month leave, we were able to manage by preparing in advance and getting other employees to cover for him. However, I don't think we could've done it if the duration had been six months or a year. I think the challenges that workplaces face are the understanding of the workplace and the duration of the childcare leave. It is crucial to create a supportive atmosphere, so employees don't have to hesitate to take leave. I regret that, as a supervisor, I should have better understood and been able to recommend the childcare leave system. If an employee would like to take a six-month childcare leave sometime in the future, then we will need to consider efficiency improvement of multiple tasks as well as securing temporary personnel to substitute for the employee taking leave. To make that happen, I realize we will need to prepare on a daily basis for how to respond to such situations, so we can cover for anyone who is absent.
Manager
Material R&D Group
Research & Development Center
Kimiya Ishida
Nursing Care Leave System Expansion
We have continued to improve and expand our nursing care leave system since its introduction. More detailed information is provided below.
＜Nursing Care Leave System Expansion＞
Expansion of Eligibility for Taking Annual Paid Leave by the Hour
OSG has previously allowed employees who need to care for a child in the third grade or younger, a family member within the second degree who requires nursing care or support, and need to go to the hospital or receive treatment for an injury or illness to take annual paid leave by the hour. From April 2022, with the aim of improving work-life balance, the scope of coverage has been expanded to all employees to take annual paid leave by the hour.
Increased Maximum Reserve for the Expired Paid Leave Reserve System
As part of our existing efforts to reduce lost paid leave, we have operated a reserve system for paid leave, which expires two years after it is received, while also aiming to increase the rate of paid leave taken each year. Reserve paid leave can be taken in order to receive medical treatment in cases of personal injury or illness and to provide nursing care to family members through the medical leave system. Previously, up to four days per year could be kept in reserve up to a maximum cumulative total of 30 days, however, these initiatives were further improved and expanded in April 2020.
＜Medical Leave System Expansion＞
Under the previous eligibility conditions, employees had to be unable to work due to a non-work related injury or illness for seven consecutive days or more. This has been reduced to one day or more in order to make the system easier to use.
Safety and Health Management
OSG declared itself a "Global Company," "Healthy Company," and "Environmentally Friendly Company" in 1996. In 2014, we adopted the tagline "Shaping your dreams" as our brand identity. We believe that creating an environment where each and every employee is cheerful, happy, and energetic in their daily work and contributing to the sustainable development of the community, society, and the Earth based on our philosophy of "being a public entity of society" will create a prosperous future. As we approach our 100th anniversary, we will continue to pursue wellbeing and give shape to our dreams through human resource development and manufacturing as a global company that shines even brighter.
Safety and Health Management Report
Safety and Health Management Report（3.8 MB）
Health management
Initiatives as a Health Company
As a health company, OSG is committed to further corporate growth and social development by implementing health promotion activities that leave no one behind from the perspective of employees, such as disease prevention and support for balancing work and medical treatment.
Support for Balancing Medical Treatment and Work
At OSG, we have established a company policy regarding support for balancing medical treatment with work.
In order to implement this company policy, a number of employees have been involved in the creation of various systems to support employees who are receiving medical treatment.
A system to facilitate contact with occupational health professionals has been implemented at each of our locations.
Occupational health professionals handle a range of internal notification procedures in order to reduce the burden placed on the person receiving treatment.
Careful consideration is given to the condition of the person receiving treatment, and every effort is made to support them as much as possible.
We constantly strive to put our employees first and enable them to balance medical treatment with work.
Health Mission 25 Initiatives
OSG Recognized as 'Excellent Health Management Company 2024 - White 500'
OSG Corporation was recognized as an Excellent Health Management Company (Large Company Division) 2024 White 500 under the Excellent Health Management Company Certification System jointly administered by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi. This program honors companies that take the initiative to practice health management. Of the companies selected as Excellent Health Management Companies (Large Company Division), the top 500 companies practicing particularly outstanding health management are recognized as the White 500.
In 1996, OSG Corporation declared that we would be a "Healthy Company." We have furthered a variety of initiatives to promote employee health, providing health-conscious meals, offering employees health management services and stress checks, and, together with our in-house public health nurses, providing exercise support, mental health care, as well as implementing other health-improvement measures and policies. These sorts of continuous activities have garnered high regard, leading to the White 500 certification.
Safety Management
Safety and Health Committee
Under the leadership of the Headquarters Safety and Health Committee, in which all executives participate, each committee continues to work together with all employees to promote safety and health. In the event of an accident, the Safety Management Committee takes the lead in pursuing the causes and countermeasures at the site where the accident occurred, and shares the information with the company to prevent the same accident from happening again. The Health Management Committee supports the health status of each employee and promotes health activities with the aim of creating a workplace environment where employees can feel healthy and secure.
Safety Education
OSG conducts risk assessments, offers safety and health education, and holds zero accident meetings to raise employees' awareness of safety.
The safety and health training that we provide includes management training, external training, and hands-on training in collaboration with outside organizations. In 2016, we launched hands-on safety workshops with the aim of raising our employees' awareness of safety through actual experiences of hazardous work. This sort of training helps compensate for the lack of experience of our younger employees and the decline in ability to perceive risks that has accompanied automation of production processes. These sorts of proactive initiatives have led to a decrease in job-related accidents.
Respect for Human Rights
The OSG Group and all employees both in Japan and abroad work with respect for human rights and are committed to following the letter and the spirit of all relevant laws, regulations and international rules while taking a proactive approach to the creation of a sustainable society with sound values. We ensure a work environment that will neither offend nor discriminate by race, belief, skin color, sex, religion, nationality, language, physical appearance, wealth, or birthplace. We must be particularly mindful of sexual harassment, which we strongly disapprove of as a company. When such problems occur, we must quickly investigate the case, provide aid to the person making the complaint, and act decisively to prevent any recurrences.
Human Rights Policy
OSG Corporation and all the group companies (hereinafter referred to collectively as "OSGs") respect the"International Bill of Human Rights" (Universal Declaration of Human Rights and International Covenant on Human Rights), the International Labor Organization (ILO)'s "Declaration on Fundamental Principles and Rights at Work" and the United Nation's "Guiding Principles on Business and Human Rights," which define the fundamental human rights that everyone in the world should have, and establish "OSG Group Human Rights Policy" (hereinafter referred to as "Policy"). Each one of the members of OSGs shall promote activities related to human rights based on this Policy.
OSG Group Human Rights Policy（80 KB）
Initiatives Promoting Respect for Human Rights
Some of the main activities undertaken at our company in order to promote respect for human rights are outlined below.
We are making active efforts to promote human rights awareness among all of our employees and will continue to carry out this important work. OSG is also a member of the Industrial Federation for Human Rights in Aichi and engages in activities to promote and improve human rights awareness.
The Sustainable Development of the OSG Brand
Pursuit of Customer Satisfaction
Technical Seminars
Even as the OSG Group actively strives to achieve digitalization, we place a high value on the connections we have formed with customers. We not only regularly hold in-person seminars but also online seminars so that participants can attend no matter where they are. These online seminars take advantage of the benefits such a platform offers, such as providing archives of the seminars and preparing multiple timeslots so that as many of our customers as possible may attend. In addition, online events and services have spread rapidly since the pandemic, which seems to have diversified points of contact that we have with customers. We are now able to quickly gather feedback from customers voiced across various platforms and make use of this precious feedback to improve our services and quality as well as develop new and better products. We will continue to make use of the advantages that both face-to-face and online platforms offer, and provide our customers with useful information tailored to their needs.
Communication Dial
Inquiries that we receive through our Communication Dial service range from basic questions to quite difficult ones relating to actual machining processes. Depending on the nature of the inquiry, it may be necessary to check with our design and development divisions or contact the sales team to arrange a visit to the customer. We are committed to providing the best service to each and every customer. We also have an FAQ webpage, which we create and update based on analyses of the more than 100 inquiries and feedback received daily from customers. We are striving to create an environment that will enable us to respond to our customers' diverse needs by promoting digitalization in addition to the existing Communication Dial services. With the pace of change accelerating, we will continue to maintain our customer-first approach. We want our clientele to always regard OSG as a company they can consult and rely on to solve any issues they face, no matter what problems arise.
I am in charge of the seminars, always keeping in mind that I have to 'be close to each and every customer.' Even though the seminar might be the same, the backgrounds and years of experience of the customers participating in the seminar vary. When I am conducting a seminar, I make it a point to always think about what and how I should convey information so that everyone will enjoy the seminar. Our seminar questionnaires and the Communication Dial service provide valuable opportunities for us to learn more about our customers. My aim is to listen to what our customers are saying, respond to their needs, and provide support that gives them even greater satisfaction.
Customer Support Team Global Marketing Department
Mahiro Ishiguro
Quality Management System
Quality Policy
OSG Quality Certification System
OSG has a proprietary quality assurance system certification program in place to ensure consistent quality worldwide, and we have strived to maintain and improve the level of quality at our group companies both in Japan and abroad. The quality certification system certifies that quality management from the arrival of raw materials (or materials for which regrinding has been requested) to product shipment and after-sales service is equivalent to that of the mother factory operated by OSG Japan.
Evaluation is performed by certified quality auditors from OSG Japan in accordance with the Three Reality Principle ("going to the actual site", "seeing the actual goods", and "seeing the actual situation"). The systems in place to ensure that the quality required by customers is provided on a consistent basis and the capability of employees to correctly evaluate products are evaluated. This is done through quality audits based on evidence submitted through communication with those in charge and those carrying out the work. Our audits use a five-tier evaluation system to check and determine whether the quality assurance system passes categories defining product quality, quality inspection skills, and quality improvement capabilities. For example, product quality is evaluated by randomly sampling mass-produced products and measuring them to determine whether they are produced according to the dimensions specified in drawings as well as ascertaining base materials and grinding quality.
We will continue to further expand these activities in order to ensure that OSG's standards of manufacturing are maintained at our group companies around the world.
My main job is to audit the quality systems of our domestic and overseas group companies. With production sites around the world, it is important to maintain stable quality regardless of whether the site is located in Japan or abroad, and to ensure consistent quality no matter who produces the item or where it is produced. However, this is by no means an easy task. Behind the stable quality lies the diligent accumulation of each and every task. I am always thinking about how we can maintain reproducibility in this process and providing assistance in constructing quality assurance mechanisms through these audits of quality systems.
Quality Assurance Group Quality Assurance Department
Naoya Fujishiro
Automation of Inspection & Packaging to Eliminate Human Error
Many mistakes and defects in the final inspection and packaging process are often due to human error. Therefore, we are striving to enhance the efficiency of these processes and utilize equipment with the goal of eliminating misjudgments and defects. Streamlining packaging materials simplifies the work and enhances its efficiency as well as reduces plastic waste and costs associated with such materials. In the past, we used to visually check the shipping label affixed to a package and the enclosed delivery statement. Now, thanks to adoption of a character collating system, we have been able to reduce erroneous packaging and shipping. In addition to promoting automation of visual product inspections, we have implemented initiatives to eliminate irregularities in manual inspection accuracy and reduce the risk of blade chipping or other accidents occurring during manual work. Replacement of the previous visual inspections, which were conducted using a microscope, with image inspections has made it possible to inspect tools in more detail. As these images may be stored, this database also offers the benefit of bolsters traceability.
Quality Management System
ISO 9001
ISO 9001 Certificate（751.5 KB）
＜Group companies with ISO 9001 certification＞
JISQ9100
Supply Chain Management
As an essential player contributing to the global manufacturing industry, the OSG Group implements initiatives to provide solutions to human rights, environmental, and other challenges as well as to fulfill our social responsibility across the entire supply chain.
OSG Procurement's Basic Policies
At OSG Group, we implement the following measures based on the OSG Group Corporate Code of Conduct in our procurement activities.
Open and Fair Transactions
OSG carries out fair and open transactions based on the principle of free competition and in accordance with the values of globality and openness. In order to establish relationships leading to mutual growth, OSG and its suppliers make efforts to deepen mutual understanding and build relationships of mutual trust.
Compliance with Laws, Regulations, and Social Demands
Our procurement activities are carried out in compliance with laws, regulations, and social norms. In accordance with social demands, we also develop our procurement activities with due consideration to the environment, human rights, labor standards, health and safety, and information management.
Consideration for the Environment
In order to protect the environment, we prioritize the purchase of eco-friendly products (green procurement activities) and the use of suppliers who implement environmental conservation measures in their manufacturing processes.
CSR Procurement
Corporate Social Responsibility (CSR) Procurement aims to minimize social and environmental impacts across the supply chain. This includes issues related to human rights, labor standards, corruption, environmental protection, and other important matters affecting our communities. Stronger demands by society are being placed on companies to implement such efforts.
The OSG Group CSR Procurement Guidelines outline key actions that both the OSG Group and our suppliers should take to promote sustainable development.
OSG Group CSR Procurement Guidelines
The OSG Group CSR Procurement Guidelines enhance suppliers' understanding of what is expected of them. This enables them to better adhere to these guidelines in their operations. Additionally, it supports the implementation of CSR activities throughout the supply chain.
CSR Procurement Guidelines
Guideline-Based Sustainable Procurement
The OSG Group has conducted CSR self-assessment surveys based on our OSG Group CSR Procurement Guidelines. The purpose has been to ascertain the status of CSR initiatives across the supply chain as well as have suppliers develop a better understanding of the OSG Group's CSR procurement approach and efforts. We are enhancing communication with our suppliers so that we jointly promote CSR activities which will help us create a sustainable society.
CSR Self-Assessment Survey
A survey was conducted of OSG Group's principal suppliers in Japan to better understand the status of such efforts.
fiscal 2022
fiscal 2023
The survey was analyzed and evaluated, and feedback provided.
We will continue to improve the survey, giving consideration to expanding the target range as well as revising survey questions.
OSG Policy of Responsible Raw Material Procurement
Concerns have been raised about the mining of tin, tantalum, tungsten, gold, cobalt, mica and other minerals in conflict-affected and high-risk areas. The process of mining such minerals as well as their trade may involve child labor, forced labor, or other human rights violations as well as raise issues relating to labor standards. There is also apprehension that the proceeds from such mining may also serve as a source of funds for armed groups in conflict-affected regions.
OSG Group has made a commitment to engage in responsible mineral procurement. In accordance with OECD Due Diligence Guidance, we have been identifying risks so that we may address such issues.
In addition, as our suppliers appreciate these initiatives, we have also asked them to cooperate with surveys detailing the history on how the minerals have been procured. We request that they source minerals from certified smelters not party to any such issues.
Green Procurement
We aim to provide our customers with environment-conscious products in accordance with our Environmental Policy of making our entire supply chain more environmentally friendly.
We seek the cooperation of our suppliers in the establishment of an environmental guarantee system and the provision of environmental guarantees of procured products in order to allow us to act as a business that provides eco-friendly products through our development, design, production, and distribution processes in all of the regions in which we operate.
Green Procurement Guidelines
Our Green Procurement Guidelines are an important set of policies that consider the full life cycle of commercial products and relate to the management of chemical substances in supply chain products and information provision. In order to prioritize the procurement and purchase of materials and products with a reduced impact on people and the environment when procuring materials required for production, we work together with our business partners in areas such as the management of chemical substances contained in products and self-evaluation of green procurement activities. We are also undertaking initiatives to promote the integration our green procurement activities with those of our suppliers.
Partnership Building Declaration
OSG drafted and announced our Partnership Building Declaration aimed at strengthening partnerships through the promotion of collaboration, coexistence, and co-prosperity with our supply chain partners and entrepreneurs seeking to create value.
OSG Partnership Building Declaration（Japanese）
Contribution to Local Communities
Ministry of Economy, Trade & Industry confers Japan-India Institute for Manufacturing (JIM) accreditation on OSG India Academy
OSG India Academy was accredited by Japan's Ministry of Economy, Trade & Industry, certifying our in-house training school opened in India as a Japan-India Institute for Manufacturing (JIM). JIM are institutes where trainees may acquire the concepts and skills necessary for Japanese-style manufacturing under the Manufacturing Skill Transfer Promotion Programme agreed upon by the governments of Japan and India in November 2016. These institutes aim to develop India's human resources in the field of manufacturing.
At OSG India Academy, trainees learn Japanese-style manufacturing while they actually operate machinery during the one-year training program. Five trainees graduated from the Academy's first class, four of whom are working at OSG India. The second class currently has six trainees participating in the program. In the future, we are planning to have OSG employees from Japan serve as instructors to mentor trainees in learning approaches to product inspection and quality, reconditioning techniques, and other skills.
OSG actively strives to develop human resources both in Japan and globally, and contributes to developing India's manufacturing industry and strengthening the economic environment.
OSG supports the Shuzo Challenge, Japan Tennis Association Project for junior men's tennis athletes
OSG supports the Shuzo Challenge, a segment of the Mt. Fuji Project launched by the Japan Tennis Association Project, to improve the skills of junior men's tennis athletes
Shuzo Challenge is a tennis camp run by Shuzo Matsuoka, director of the Japan Tennis Association and deputy general manager of the High Performance/Junior Development Department. At the camp, Shuzo Matsuoka and his staff provide expert coaching in skills and tactics as well as the ways of building physical and mental capacity to achieve the aim of developing men's tennis junior players' skills and competence to play at a world-class level in the future. This year we launched a new initiative, an intensive training camp held from April 29 to May 1, 2024, at OSG's tennis courts (in Toyokawa City) and accommodations. Under the guidance of coaches from the Japan Tennis Association, this camp aimed to prepare players for upcoming international tournaments. Six junior players, who were either in their second or third year of middle school and had experience participating in and winning international matches, took part in the camp.
Through our promotion of sports, OSG works to create an environment where each and every one of our employees is able to devote themselves to their daily work in a cheerful, enjoyable, and energetic manner. Based on the principle that companies should be institutions for the benefit of society, we are aiming toward a prosperous future and working to make a sustainable contribution to the community, society, and the planet.
OSG supports the San-en NeoPhoenix
Aspiring to create a prosperous future and contribute to sustainably developing our local community, OSG supports the San-en NeoPhoenix professional basketball team and has endorsed its management philosophy of "Making San-en region a place where people smile and thrive." In addition, OSG hosts a variety of events during games that we sponsor. In 2023, we invited facilities for people with disabilities around Toyokawa City to the games. At the games, booths were set up selling products produced at these facilities and cookies made there were distributed as gifts to visitors. As an official sponsor, OSG supports these games with the hope that such opportunities bring joy to the users of these facilities as they interact with customers and sell their products. In 2023, we sold produce grown under solar panels at OSG's dedicated solar power plant, which operates as an off-site power purchase agreement service, for the first time.
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