Challenges for the AGC Group, and Expectations of Society

Mr. Kudo: We at the AGC Group aim to become a corporate group that is counted on and trusted by the global community, a group whose continued success and longevity is deemed important. To this end, we are committed to contributing to society through our products and services as well as implementing community relations activities with goals shared by the entire Group. The AGC Group operates businesses in approximately 30 countries and regions and is conducting community relations activities at each of its bases across the world. We do not, however, have a common global policy for our community relations program, which has led to some problems. Specifically, we do not have a clear picture of all the community relations activities conducted throughout the Group, so we are unable to fully explain them to our stakeholders. If we have a common policy, we can better explain to our stakeholders why we are engaged in particular activities and more easily build relations of trust with them. In addition, our employees will be more fi rmly united, feeling that they belong to a company that is giving something back to society. We have therefore come to regard it necessary to clarify the AGC Group's policy on community relations. To facilitate this, we think it important to (1) continue the activities; (2) conduct them in a consistent manner; (3) value existing activities; and (4) take a bottom-up approach to meeting local community needs.

Mr. Shimosawa: As an NGO, we would like companies to conduct community relations activities on a long-term basis. If NGOs, corporate employees, and local communities cooperate in grassroots activities with a long-term outlook, they will be able to achieve even greater results. Some prefer short-term activities with visible achievements as well as activities that can be easily publicized through photos, but what is really essential is that we earn the trust of local residents to the extent that they think, “We can rely on this company when we have a problem.” In this context, I do think that it is quite important for companies to conduct grassroots activities based in local communities.

Mr. Azuma: As a prerequisite for companies conducting community relations activities, they must be able to explain why they are doing so to their stakeholders. There are a whole range of problems that need to be addressed so companies have to decide which problems to focus on. A company must first identify what is important to their stakeholders as well as their own business priorities before they can give persuasive explanations to their stakeholders, which includes the company's employees and shareholders. I think the most important thing is to prioritize the problems and formulate appropriate strategies to deal with them.

Mr. Nagase: Since the birth of humankind, people have naturally helped each other in their daily tasks. We at the United Nations Volunteers therefore would argue that every community engages in some kind of volunteer activity, even if the word “volunteer” is not specifically used. Companies will find it much easier to conduct a range of activities if they first make contact with local communities through volunteer activities. I therefore think it quite meaningful for companies to conduct volunteer activities as part of their community relations program.

Mr. Ito: AGC Flat Glass (Thailand) has been around for 45 years now and is deeply rooted in Thai society. We have been conducting a variety of community relations activities including outdoor environmental education for elementary school students and reforestation activities such as planting trees and restocking rivers with young fish. We also grant scholarships, organize seminars on glass at local universities, and accept interns as ways of supporting local education. We have been conducting these activities for a long time now and, in my opinion, we can do this because Thai people, living in a society strongly influenced by Buddhism, take it for granted that the “haves” have a responsibility to help out the “have-nots.” In Thailand, it is quite natural-not to mention mandatory-for companies that are doing well to give something back to society. I think this is one of the core beliefs underpinning Thai society.

The AGC Group's Draft Basic Policy on Community Relations-How to Intertwine Social Issues and Business Requirements

Mr. Kudo: The AGC Group has formulated its draft basic policy on community relations. We are determined to address social problems through our business activities as well as to conduct social activities as part of our corporate social responsibility and to support employees' independent volunteer activities toward the achievement of a healthier global environment and community. After receiving feedback on this draft from both inside and outside the Group, we will finalize the policy. As for which field of activities to prioritize, we are considering the three themes of “human resources development,” “harmony with local communities,“ and “contribution to the natural environment.”

Mr. Azuma: According to the CEO and COO messages in the AGC Group CSR Report 2008, the Group gives first priority to environmental protection, and so I think the Group will be able to develop strong community relations by prioritizing environmental problems above other issues. For the incorporation of community relations activities into a corporate CSR program, it is necessary that the themes of these activities are closely and consistently related to the themes of the company's CSR. Also, one should address separately the problems that can be solved through business activities and those that can benefit from community relations activities. The general themes, however, should be the same for both. This is the basic approach that I would recommend because it is clear and easy to understand. In the actual conduct of these kinds of activities, however, the company will be faced with problems that are not directly related to its business. In particular in Japan, there tends to be pressure on companies to conduct activities that are beneficial to society even in fields that are not closely related to their business. In such cases, it is important for all employees to understand why they need to conduct the activities.

Mr. Shimosawa: The three themes mentioned earlier make sense to me because, my organization, as an NGO, deals with them on a profound level. With regard to “human resources development,” it is important to help the socially disadvantaged, who tend to be isolated from the rest of society, to be truly accepted as valued members of society. You will be able to conduct activities to this end in a more effective manner by utilizing the expertise of NGOs, such as ours.

Mr. Nagase: The progress of volunteer activities throughout the world, as described in a report submitted to the Secretary-General of the United Nations, underpins the appropriateness of the three themes, namely “human resources development,” “harmony with local communities,” and “contribution to the natural environment.” In particular in terms of human resources development, the report insists that it is extremely important to assist young people, who account for a large percentage of the populations of developing countries, to acquire the skills they will need to support themselves in the future. We also have the Millennium Development Goals*1 as a common challenge to be met by the international community. Toward the achievement of these targets by 2015, the governments of developed countries are required to provide more support to developing countries through official development assistance (ODA). Volunteer activities must also be conducted to this end. We at the United Nations Volunteers regard it one of our missions to boost volunteerism around the world, and so we are very happy that the AGC Group is committed to supporting volunteer activities in its draft basic policy. We, in turn, would like to support the Group in its implementation of the policy.

Mr. Azuma: In Asia, presidents of subsidiaries and heads of local plants often assume leadership in volunteer activities. Inspired by them, their employees also become highly motivated to begin participating in such activities as a natural progression. In Europe and North America, on the other hand, volunteer activities are usually conducted within local communities and so people have different ideas about corporate volunteerism. In light of this, NEC makes sure to explain to local employees in the relevant regions why the company's community relations activities are necessary, insisting that such activities will have a positive effect on business performance. We then ask local employees to formulate an original plan for their own volunteer activities based on local conditions. In Japan, volunteer activities are not generally carried out by either local communities or companies, and so it is important to get employees involved. Initially, we encourage them to start with something very easy, such as collecting used stamps to send to schools in developing countries. Giving them positive feedback motivates them to move on to doing something more difficult. We therefore take different approaches in Japan, in other Asian countries, and in Europe and North America.

Mr. Ito: I am leading the community relations program undertaken by my company in my capacity as president. Over our 45-year history, however, we have already established a corporate culture in which employees proactively make contributions to society. We can take various measures to facilitate our activities, but the ultimate ideal situation is for employees to become independently involved in such activities. Among many other ways of raising employee awareness, I believe it is important for top executives to make efforts to cultivate this kind of culture.

*1 The Millennium Development Goals (MDGs) is an integrated framework of international development goals that were adopted in the 1990s and is based on the United Nations Millennium Declaration, signed in September 2000. MDGs are a set of eight goals that should be met by 2015, including the eradication of extreme poverty and hunger and the achievement of universal primary education.

Strengthening Community Relations through the Collection and Sharing of Information

Mr. Azuma: I think it is important for management to give clear messages on the underlying concept of community relations to employees and tell them about specific activities through a variety of media. At NEC, we send a “top message” to all employees throughout the world every single year, explaining why it is necessary for our group to conduct the activities. We also give around 3,000 examples of specific activities on our website in Japanese and English, to make the information available to all. By doing so, we can assure the top executives of our local operations that their activities are recognized and disclosed on a global scale. In addition, we publish a yearly magazine that outlines the beneficial activities conducted by our local operations and distribute 6,000 copies of it both inside and outside the company. Furthermore, we make it a rule to cooperate with NGOs regarding the activities we are supporting at head office. By utilizing the wide networks of the NGOs, we can increase the effects of our activities and provide relevant information over a wider area.

Mr. Shimosawa: According to a survey we conducted last year, local arms of Japanese companies do not often collaborate with NGOs. If, however, they seek the cooperation of local NGOs right from the planning stage, the NGOs, with their strong local knowledge, will help out with negotiations and arrangements. This kind of assistance is a very important aspect of the role that can be assumed by NGOs. If you want to promote community relations from the bottom up, it is important to share success stories with employees, clearly showing them how the results were achieved and how the activities were promoted, then solidify their commitment with the idea that starting locally will eventually provide opportunities to make global contributions.

Mr. Azuma: We also think it is essential to evaluate employee community relations activities. For example, we disclose the evaluation criteria for activities in which employees participate, and management gives annual commendations to those who have produced outstanding results. Such commendations motivate employees even more. Starting this year, we will ask those in charge of promoting community relations at each of our bases to participate in the evaluation process to increase its transparency.

Mr. Ito: I had not thought about cooperating with NGOs and evaluating community relation activities and so what I have heard today at this meeting will be very useful to me.

Mr. Nagase: Volunteer activities are basically unpaid so it is critical to acknowledge and reward participants in non-monetary ways and make sure they get some satisfaction out of their activities. People's values, however, differ by region and we need to acknowledge participants in locally appropriate ways.

Mr. Kawakami: I once developed a grand design for our community relations program, but it soon proved unsustainable. One of the reasons might have been that I thought it necessary to keep our business and community relations activities clearly separated from each other. Listening to you today, however, I have realized it would better for us to start with activities that are closely related to our business. Such activities will be easier to sustain. I also strongly agree that it is important to collect information and share it both inside and outside the company. This is undoubtedly essential for a company to maintain accountability.

Mr. Kudo: This meeting has given us a great opportunity to hear from our external stakeholders about the future direction of the AGC Group's community relations program, for which we are thankful. Within our company, some have argued that business and community relations activities should be kept separated, but the AGC Group's uniqueness is based upon the technologies and skills it commands. We should utilize these advantages not only in the solution of social problems, such as environmental issues, but also in combination with ongoing initiatives to bring about a more peaceful world and so on. This meeting has made us feel confident that we can gain the support of both our employees and other stakeholders.

The AGC Group tends to act only after formulating a complete plan. Regarding social problems, however, I think it is better for us to act first so that we may contribute to the solution of problems as early as possible. You have made some very thoughtful comments about how we can push our activities further. We will take definite steps toward achieving our target, formulating necessary measures as required as we actually implement our plan. Thank you so much for your time today.