CSR Management

We have established the CSR policy in the spirit of our corporate philosophy. We define CSR as

• ・Engaging in corporate activities that incorporate concern for the environment and initiatives to ensure social fairness and contribution to the community
• ・Fulfilling the duty of accountability to stakeholders
• ・Working to improve corporate activities not only in the economic aspect, but also in the environmental and social aspect.

In 2014, we established the CSR Headquarters to strengthen our groupwide CSR activities. In November 2019, we established the Rules for Managing Sustainability Promotion Activities with the aim of promoting CSR activities (hereafter, sustainability activities) to meet the expectations of society toward the realization of a sustainable society. At the same time,

Recently, due to factors such as the increasing damage caused by climate change, CSR (Corporate Social Responsibility) activities have placed more emphasis on not only social fairness but also measures for resolving social issues through business activities and contributing to the realization of a sustainable society. Therefore, The committee is chaired by the
Executive Officer in charge of CSR Headquarters, and consists of the general managers of ESG-related divisions. The former CSR Committee deliberated on issues and measures to effectively promote CSR activities. In addition to previous activities, the Sustainability Committee clarifies key issues that the Group must resolve through its business activities and sets specific targets for addressing SDGs, and develops business activities based on resolutions made at Board of Directors.

■ Organization Chart

Initiate identification of materiality

In formulating our 3-Year Medium-Term Management Plan, which will begin in fiscal 2021, we are identifying materiality in fiscal 2020 as our preparation for future growth. In addition, we will set targets for achieving SDGs and incorporate them in our business plans.

Enhancement of corporate value

Today, companies are required to produce not only business results (economic value) but they are also required to be a presence needed by society (social value). If a company is not necessary for society, growth of the company cannot be expected. In order for us to continue to be a company needed by society, it is necessary for us to face social issues and aim to realize a sustainable society by practicing our corporate philosophy.
In 2018, we established the corporate philosophy code of conduct "NTN SPIRIT" in order to instill our corporate philosophy, and NTN SPIRIT clearly stipulates the attitudes and actions we want each and every employee to pursue. We have divided the process of instillation into three steps: "recognition," "empathy and understanding" and "practice." We are pursuing measures that lead to the implementation of those three steps.

■Instillation Phase Map of Corporate Philosophy

Putting your thoughts into words; To each person’s SPIRIT

We issued the Japanese and English versions of NTN SPIRIT BOOK in order to make our corporate philosophy system and its code of conduct "NTN SPIRIT" widely known to all employees working in the Group. This booklet encourages all employees to carry out the corporate philosophy with their dreams and goals in mind in order to create a "NAMERAKA Society." In 2019, voluntary activities aimed at disseminating our corporate philosophy were extended to other countries, and we began preparing a French versions of NTN SPIRIT BOOK. Overseas employees (NTN BEARING CORP. OF CANADA LTD. and NTN-SNR) played a central role in preparing the booklet so that it is written using easy-to-understand expressions for local employees.

■NTN SPIRIT BOOK

Corporate Philosophy Dialogs spreading to each business site

We hold Corporate Philosophy Dialogs as a venue for interactive communications in order to help employees not only simply learn about the corporate philosophy system and NTN SPIRIT but also deepen their empathy and understanding for the system and spirit so that employees can express such concepts by using their own words. In the fiscal year ending March 2020, we held workshops at several business sites, and approximately 250 employees deepened their understanding of NTN SPIRIT and shared the values.

■"Corporate Philosophy Dialogs" held at each business site

What it means to practice the corporate philosophy

We see our corporate philosophy as a common value that strongly connects each and every employee, not as words on paper. With this common value in mind, we aim to become a "presence needed by society."
The NTN PROUD AWARD was established as an "opportunity to practice our corporate philosophy" in 2018, when we celebrated our 100th anniversary, with that year being regarded as an excellent opportunity to drive forward transformation for the next 100 years. During the NTN PROUD AWARD 2 in 2019, 76 teams participated from around the world, and 8 teams that received the awards after the two-step selections were praised at the ceremony in December.

■NTN PROUD AWARD 2 ceremony

Transformation for sales activity localized in Chinese market

With regard to the huge Chinese market, economic growth is still expected in the future. On the other hand, our sales activities in the region faced a variety of issues unique to the region. By resolving these issues, we aimed to improve the NTN brand in the region.
First, we classified a series of sales activities into 4 phases: (i) new customer acquisition, (ii) prospective customer acquisition, (iii) customer base expansion, and (iv) customer maintenance, and implemented concrete actions targeting.
In order to grasp the current situation, such as issues that are identified at the site, we made thorough efforts to identify problems in each phase at meetings with branch managers and through visits to exhibitions. For example, in the "(i) new customer acquisition" phase, we once again analyze the reasons behind the low level of awareness of the NTN brand in the Chinese market. As a countermeasure, we are reviewing the use of our website localized to the Chinese area, improvement of our own website, and PR methods to disseminate our track records in a wide range of industries, and are restructuring sales activities and strengthening our sales system.
In the section of "Challenge," one of credos in NTN SPIRIT, it is stipulated that "We passionately challenge ourselves without being satisfied with the current situation." As in this guideline, we were able to promote the establishment of a sales structure in the Chinese market by pursuing innovations while thinking on our own without being satisfied with the current situation. In the future, we will transform our business operations with the three credos of NTN SPIRIT as our guide: "Challenge", "Collaboration" and "Commitment."

■Members of the Planning and Sales Headquarters, NTN (CHINA) Investment Corporation

Four Award Categories based on the Corporate Philosophy

Employees are allowed to organize their team members on their own, and freely set themes they are interested in. In addition, by letting employees participate in four award divisions based on our corporate philosophy, we are strengthening the realization of our philosophy and the linkage between our philosophy and themes.
Participants in the NTN PROUD AWARD have expressed opinions such as "through our own thoughts and actions, we have started to implement our daily tasks proactively" and "because the team consists of members from various departments, the interaction has been deepened, causing a positive effect on our daily work."

■Four Award Categories Based on the Corporate Philosophy

Evaluation criteria based on NTN SPIRIT

The activities of each team are evaluated based on three credos (Challenge, Collaboration, and Commitment) that are included in NTN SPIRIT. One of the characteristics of this process is to approve and praise teams, in terms of not just results but also processes. Participants commented, "By knowing the processes in case examples from other companies, we were able to incorporate them into our own business activities, boosting our motivation," and "With ‘Challenge'incorporated in the evaluation criteria, we were able to overcome our inclination to follow precedents."

■Criteria based on NTN SPIRIT