Corporate Social Responsibility: Message from the President

Promoting CSR activities on
a global scale for sustainability
toward 2020 and beyond
Compliance, governance, cybersecurity, disasters, safety, the environment…
We will manage various risks and move toward the "State we need to achieve."

Understanding rapid changes in the business environment deeply and comprehensively and responding to risks with foresight

GOGO Plan 2020

In Fiscal 2017, we were keenly reminded of the need to analyze risks from multiple perspectives and constantly develop and strengthen legal compliance and corporate governance as foundations of the company. Some very famous leading companies caused financial mismanagement and quality fraud scandals. Evolution of IT resulted in problems related to cybersecurity and the protection of personal information. The geopolitical situation in the world has been changing more rapidly than ever. In such a business environment, we believe that we are strongly required to understand andfollow up issues on risk management deeply and comprehensively and maintain business activities with foresight.
Fiscal 2017 was the third year of the first stage for the GOGO Plan 2020, a six-year medium-term management plan of the Tanaka Kikinzoku Group and the end of the fiscal year was the halfway point for the plan. We set the goal to be reached in the first half of the plan as the "State we need to achieve" and made efforts to steadily meet the performance targets in the three key precious metal businesses, namely industrial products, assets and jewelry. To this end, we worked to establish our business base through the strengthening of communication and cooperation among the Group.
During the three years, we enhanced and expanded our business base at a faster pace than ever. Our achievements in the period included the restructuring to establish the in-house company system in fiscal 2015, acquisition of 100% of the outstanding shares of Metalor Technologies International, a peer company based in Switzerland that has a history of more than 100 years like our Group, in fiscal 2016 and the conversion of Electroplating Engineers of Japan, Limited (EEJA) and Taiwan Tanaka Kikinzoku Kogyo Co., Ltd., each of which had been a joint venture company set up with an overseas partner since its foundation, into wholly owned subsidiaries of Tanaka Kikinzoku Kogyo K.K. in fiscal 2017.
Prior to those business development activities, we established the Risk Management Committee for risk management of our Group as a whole in fiscal 2015 and have identified various risks and promoted countermeasures against them since then. We now conduct risk assessment while clearly segmenting the areas to be addressed into natural disasters, occupational accidents, health hazards, environmental problems, leakage of personal information, leakage of confidential information, issues related to conflict minerals and issues related to financial derivative products. Based on the assessment results, we determine the priority and take countermeasures against the risks.
With respect to safety, in particular, we conducted a comprehensive safety inspection of all production sites to thoroughly ensure safe operations as a manufacturing company. We implemented a review of procedures for non-regular work and improvement measures to reduce the risk of being caught and also checked the implementation status. The implementation of the improvement measures with the concerted efforts of all employees did not only promote the improvement steadily but also enhanced their safety awareness. As a result, we successfully reduced the number of accidents on production sites to the lowest level ever in fiscal 2017.
In addition, to monitor risks related to financial derivative products properly, we set up the Derivative Transaction Committee in fiscal 2017. Furthermore, based on the concept of KYC (know your customer), which was originally shared by financial institutions and is widely recognized now, we established Transaction Screening Department in April 2018. This new organization has functions to handle issues on so-called conflict minerals and eliminate transactions with antisocial forces. The department is also designed to address issues on CSR procurement, which has been demanded on a global scale in recent years, such as RBA (former EICC) and LBMA.
These various measures are indispensable for us to maintain our business activities in a stable manner (for the sustainability of the company) and fulfill our corporate social responsibility (CSR). We will continue to certainly address risks with the Risk Management Committee playing the pivotal role. In the second stage of the GOGO Plan 2020, which starts in fiscal 2018 and continues for three years, we aim for our growth and development to be a global company in order to achieve the "Ideal State we would like to achieve" for the Tanaka Kikinzoku Group. While accelerating the progress, we will further promote and develop CSR activities to satisfy all stakeholders including customers, suppliers and partner companies all over the world. I would be happy if you read this report and place your expectation on the Tanaka Kikinzoku Group, which will promote CSR activities in a more global way. We will also do our best to live up to your expectations.

TANAE Akira

President & CEO,
TANAKA Holdings Co., Ltd.