CSR Management

Basic Code of Conduct

IHI believes that meeting society’s expectations is one of its basic corporate social responsibilities (CSR).
In accordance with this belief, the company’s Basic Code of Conduct compiles the necessary practices IHI is obliged to carry out.
A guide to the Basic Code of Conduct has been translated into 18 languages other than Japanese to ensure that all IHI employees understand and follow these practices in their work.


CSR Promotion System

The heart of IHI’s CSR system is the CSR Committee, in which the president serves as the chairperson, the chief CSR officer serves as the vice-chairperson and divisional heads from the head office and business areas serve as officers.
The CSR Committee has met annually since FY2013 to enable executives to consider society’s expectations and discuss basic policies and measures relating to CSR.
At the 5th CSR Committee meeting in April 2017, an external expert explained the demands of global society and participants considered the way businesses are managed with societal issues in mind. The meeting also reviewed CSR activities implemented in FY2016 and confirmed the policies and measures for FY2017.

Promotion System

Respect for Human Rights

IHI respects human rights in every aspect of its business.
In keeping with the Group’s Basic Code of Conduct, which clearly states IHI’s respect for human rights, IHI renewed its human rights handbook, translating it into 18 languages and distributing it to Group employees around the world. The company also organizes human rights training for employees. In keeping with the changing environment surrounding human rights, in FY2017 IHI renamed its related internal body the IHI Group Human Rights Promotion Committee, reflecting its mission to further human rights activities from a wide perspective throughout the entire Group.

IHI requests its business partners as well to respect the human rights of their employees, including by assuring adequate working conditions, health and safety for employees (see IHI Group Procurement Policy). As a concerned member of the global community, IHI pursues socially responsible procurement. IHI also contributes to sustainable development through its intolerance for child and forced labor. Going forward, IHI will continue to disclose its human rights activities to stakeholders.

Communication with Stakeholders

IHI believes that communication with stakeholders is essential for gaining an understanding of society’s expectations toward the company. IHI creates various opportunities to engage in dialogue with customers.

IHI Stakeholders

Communication with Stakeholders

Stakeholder Engagement Stakeholders Main engagements and methods

Stakeholders Main engagements and methods
Customers Sales activities, customer satisfaction surveys, product/service information on website, and CSR questionnaires
Suppliers Procurement activities, explanation of group procurement basic policies, reviews of quality management systems, and supplier award system
Government organizations Making notification and receiving authorization to comply with relevant laws
Shareholders & investors General meeting of shareholders, financial results briefing, factory tours, and visits from overseas investors
Local communities Activities contributing to local communities, (sponsorship of traditional events, atrium concerts, etc.), and IHI Forum
Employees e-learning (questionnaires) and employee-awareness surveys

Dialogue with Experts

Mr. Ken Shibusawa,Chairman, Commons Asset Management Inc.

Ken Shibusawa
Chairman, Commons Asset Management Inc.

In March 2017, a dialogue was held with Mr. Ken Shibusawa, chairman of Commons Asset Management Inc., to consider how institutional investors who make long-term investment decisions view IHI.
The aim was to reflect this insight in the management of IHI. The discussion included key factors for achieving sustainable growth and methods for communicating with stakeholders.
According to Mr. Shibusawa, “People are the most important factor in company management because they create corporate value.” He also commented that “IHI’s Integrated Report is a useful communication tool that provides straightforward information on the usefulness of IHI products and services and the impact that the company has on society.”

Exhibit at Trade Fairs

IHI Forum 2016

IHI Forum 2016, which was organized around the theme “IHI Evolving with ICT,” was held at the Toyosu IHI Building.
This was an opportunity to convey IHI as it is today ー creating new value by merging cutting-edge information communications & technology (ICT) with products, services and technologies.
The Products/Technology Exhibit Corner demonstrated monitoring of actual aircraft engines using ILIPS* and remote operation based on a combination of virtual-reality and robotics technologies.
Customers and business partners alike expressed favorable opinions regarding these exhibits.
Fun activities were organized for visitors from the surrounding community and employee families, including an entertaining event that taught children about IHI technology and history.
There also was market to sell specialties from regions throughout Japan where IHI has local operations.
*IHI Group Lifecycle Partner System, a remote monitoring common platform

IHI Exhibits at Eco-Products 2016

ntroducing products and services via tablets

Introducing products and services with tablets

An exhibit was organized at EcoPro 2016: International Exhibition on Environment and Energy, Japan’s largest environmental fair, which was held in December 2016. Targeting junior high school students, IHI staged pantomime, animations and other presentations to introduce how it is combating climate change through responsible products and services. We will continue to proactively communicate with our stakeholders through such events.

Dialogue with Employees

After publishing our Integrated Report, we hold an e-learning course for all Group employees and conduct a survey to raise understanding and awareness of our business and CSR activities. In FY2016, we received responses from 21,693 employees, including those at Group companies. We found that most employees understand how their own work connects to society and how they are contributing to the solution of major issues confronting society.


Message from an Outside Director

Hiroshi Kimura Outside Director

Hiroshi Kimura
Outside Director

Hiroshi Kimura, having served as President & CEO and Chairman of the Board at Japan Tobacco Inc., possesses extensive experience and broad insight based on his active implementation of globalization strategies. Currently serving as an advisor to Japan Tobacco.

Establishing IHI as a globally necessary company

IHI has survived as an organization with a rich history and tradition of carrying out bold structural reforms. In the face of declining performance in recent years, the company has implemented necessary countermeasures to start climbing back up the ladder. Now is a prime time for IHI to take long strides in a positive direction.
IHI is dealing with the issue of strategically reorganizing its corporate resources. I feel that the company’s scope is still too broad and that it must decide which businesses to maintain or withdraw from, with a greater sense of urgency for enhanced competitiveness.
In growth areas that will serve as its future core, IHI must remain committed to long-term investment.
In this regard, the shift to an SBU system in April 2017 has made it easier to reallocate corporate resources. Going forward, IHI will need to muster its collective strengths by sharing basic technologies, customer information and so forth. Another key will be the resolve of top executives to nurture the necessary managers. To ensure that employees achieve professional growth, they must be delegated responsibilities from a young age and given experience in various business areas, including overseas.
Looking to the future, global cities are destined to undergo broad changes in accordance with economic and technological advancements over the next 50 years. There is no limit to the areas where IHI can play an active role if it develops the technological strengths needed to build these new cities. I believe IHI can establish an irreplaceable global presence by leveraging its ‘monozukuri’ (manufacturing) power to help meet the vital needs of future society.

Message from an Outside Audit & Supervisory Board Member

Yoko Hatta
Outside Audit & Supervisory Board Member

As a partner at KPMG Peat Marwick (present day KPMG Japan), Yoko Hatta acquired extensive experience and insight in global business focused on international taxation. She is currently serving as an auditor at International Christian University.

Adjusting to change and responding swiftly

IHI helped to rebuild Japan’s infrastructure following World War II. For IHI to continue advancing its business, it must leverage its solid track record and sophisticated technologies to respond with increasing speed to the rapidly changing global business environment.
Particularly when expanding its global footprint over a diverse range of business environments, there is an ever-mounting need to respond with multifaceted strength and flexibility. Rather than merely attempting to transplant methods from Japan, IHI must grasp the values and rules of any region where it conducts business and then respond with a global perspective.
Moreover, the company will be able to respond to change only if it remains flexible by constantly incorporating new concepts and diverse values. It is absolutely necessary to facilitate the participation of young employees, because they are so acutely aware of the changing times, as well as women who feel they still have not been able to fully demonstrate their talents. To encourage greater participation in the workplace by women, it will be important to create increasingly inviting work environments.
For IHI to make strides in a positive direction, it must enhance its unique strengths by fusing proprietary technologies and leading IoT. I would like to see IHI stay attuned to global changes so that it can adapt and respond swiftly whenever required.

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