Fulfill Corporate Social Responsibility (CSR) through Business Activities
The basic corporate philosophy of the Topy Industries Group is expressly stated as “Win the trust of society through the continuance and development of the Topy Industries Group and the execution of one’s duty as a public institution.”
Our CSR strategies aim at obtaining the trust of our stakeholders by realizing a sustainable society through manufacturing activities based on this corporate philosophy.
Topy Industries uses products produced at the raw material section, the Steel Division, to produce various high value-added products through unique technologies at the processing sections, the Wheel Division and the Undercarriage Components Division. This integrated production from raw materials to finished products highlights the competitive strength of our unique business operation. By utilizing the synergy effect of this integration, we produce reliable and high-quality products that meet the diversified need of customers for certain material characteristics as well as design.
We believe our continued initiative in improving corporate value through manufacture will lead to the realization of a richer, more livable and sustainable society including the future growth of the Topy Industries Group.
Initiatives on Medium Term Consolidated Management Plan
2015 is the final year of our on-going Medium Term Consolidated Management Plan. In the past three years we have witnessed a drastic change in the business environment far beyond our expectation envisaged at the time the management plan was drafted. It is no exaggeration to call the change an upheaval. The progressing depreciation of the yen, drop in oil prices and slowing down of the economy in China and ASEAN countries which once was a “high-flying economy”, have brought serious impact on our development plans that expected quantitative global growth for our products and services. This is particularly conspicuous in the sharp drop in demand for mining machinery overall and decrease in demand for construction machinery in China, putting us in a difficult position to achieve the targets we initially planned. However, we have steadily implemented measures to build a foundation for growth and addressed actions against environmental changes at each business segment as well as reviewing and realignment of business. We have evaluated all group companies under the same criteria, giving management freedom to a greater extent for those companies with a high evaluation while applying more effective corporate governance for companies with a low evaluation in order to enhance group company management levels and to progress business promotion scheme towards future growth.
Initiatives on CSR for FY2014
From the view point of CSR, we have exerted increased efforts toward corporate compliance and risk management, and promoted the awareness of such matters through educational training programs for employees of the Topy Industries Group. Furthermore, human resource development from a global prospective is essential to the future of the Topy Industries Group. In order to meet such requirements we have accepted trainees from overseas, provided assistance to local production sites and launched a project team to realize the participation and success of women employees in the workplace as part of promoting diversification.
As for EneKatsu 2020 (Energy Saving Initiatives 2020), reported in Topy Report 2014, we have achieved solid results and are proceeding with the next plan to introduce energy saving equipment. We believe that services and products that are environmentally friendly and that lead to resolving social issues are essential to the future of our company. In this respect, we are determined to progress our contribution to the environment through our business, namely making use of our new electric furnace (the world’s most energy efficient, maximum capacity) as our key weapon.
Desired Supply Chain Management
The major products of the Topy Industries Group such as wheels for large-sized vehicles and undercarriage components for construction machinery occupy a remarkably high market share. Such products must be reliable, safe and of high-quality, excellent in cost performance, as well as being able to supply steadily to any volume demand increase. Topy Industries has a firm standpoint with regards to procurement. With unique procurement criteria at each department, we are advancing the formulation of a supply chain management that enables stable procurement and one which can precisely respond to the needs from customers.
As a supplier, we have paid special attention to the issue of BCP (Business Continuity Planning) when building the new electric furnace. Since it is highly unrealistic to think that all damages can be prevented in the event of a disaster, we are taking action on a regular basis to minimize damages by increasing the resistance of buildings and manufacturing facilities against earthquakes, and implementing other disaster mitigation measures so that we do not disrupt the supply of products to our customers. We are confident that these initiatives will help strengthen the continuation of our business activities.
The development of global business such as the establishment of a joint venture company in Mexico poses another business challenge for us. As our business expands globally it becomes more important for us to respect differences in cultures, customs and habits of local communities, to comply with applicable laws and regulations of host countries, to promote diversity, and to tackle other social issues.
Business Activities and Promotion of CSR
In six years’ time, Topy Industries will celebrate its 100th anniversary of foundation. The 100th anniversary will mark a milestone in the history of the company. In order for the company to continue being a sustainable organization in the future, we need to start our 101st year with a clean slate, and create a new corporate culture. We are fully aware that, the notion that conventional ideas, technologies and preceding examples of management will assure business success had long prevailed during the height of Japan’s economic growth. However, this can no longer be applied to our business today. When drawing out our future business plan, it is now unrealistic to think that following our predecessors’ paths and doing business in the same way will eventually lead us to our desired goal.
This recognition will consequently require the change in awareness of our employees in the coming five to six years. It is the task of the management to provide such opportunities and environment to our employees. This is one of the issues that the Topy Industries Group faces. For the Topy Industries Group to be a reliable enterprise and one where our employees can work with confidence and pride, we need to listen to public opinions, avoid being egocentric and promote management to resolve social issues through our core business operations. We are determined to take our first step in FY2015.
Topy Industries, Ltd. President and CEO