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CSR(Corporate Social Responsibility)

Hitachi

CSR Promotion Activities

Objective view to strengthening CSR management

Striving to Be a Global Leader in CSR

In 2006, we established the Three-Year CSR Roadmap, a medium-term plan for CSR activities. Based on this roadmap, we set fiscal year targets and activities that strengthen our CSR efforts over this period. Our objectives in fiscal 2008 were to optimize and carry out strategic CSR. Through dialogues with stakeholders, we prioritize material issues for the sustainable development of society and for business. We also applied CSR self-assessment tools to clarify challenges within each division. We are now incorporating these issues into our strategy, with the goal of becoming a global leader in CSR in 2010-the year of our company's centennial.

Three-Year CSR Roadmap Concept
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Self-Assessment of CSR Activities

CSR Self-Assessment Tool

The CSR Self-Assessment Tool ("Tool") developed in fiscal 2008, was created with the aim to examine our position and the direction that we should be taking. With outside experts, we referred to the indices used by major SRI*1 and sustainability investor surveys, as well as global standards. We then summarized the elements required into 47 categories and set five levels to be reached for each category. Finally, by assembling and analyzing the results of self-assessments in eight policy areas that correspond to Hitachi's CSR Policy, we clarified our strengths, weaknesses and where we need to be heading, as well as the results we hope to achieve.
To ensure that all companies in the Hitachi Group use this tool, discussions were held several times with major Hitachi Group companies during its development. Also, an application manual was created to demonstrate the effective use of the Tool. In addition, the manual lays out scoring criteria and explains how the Tool can be applied, depending on each individual Hitachi company's business area and scale of operations.

*1
SRI (Socially Responsible Investment)
An approach to investing where shares are selected partly on the basis of criteria relating to CSR.

Fiscal 2008 Self-Assessment Results

By using the Tool, we found that the structures and systems required for effective CSR are mostly in place. We also discovered areas that need improvement: the link between CSR and the mid-term business plan, unified information disclosure within the Group, and the sharing of and education on global standards throughout the Group.
The Tool is being applied at all 22 major Hitachi Group companies, including Hitachi, Ltd., and each company is drawing up an action plan that takes into account its industry, scale, management strategy, and other details.

FY 2008 Self-Assessment Results (Hitachi, Ltd.)
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Main topics covered in each policy of the CSR Self-Assessment Tool

Policy 1: CSR vision; CSR education; risk management
Policy 2: Coordination with business strategies; sustainable designs; customer satisfaction
Policy 3: Information disclosure; dialogue with stakeholders
Policy 4: Corporate governance structure; awareness of ethics; compliance; and human rights
Policy 5: Carbon management strategies; resource recycling; ecosystem conservation
Policy 6: Strategic social contribution; participation in local communities; social enlightenment
Policy 7: Respecting diversity; fulfilling work environments; work-life balance
Policy 8: CSR procurement; communication with suppliers

[voices] Enhancing CSR Management through Self-Assessment

[image]Peter D. Pedersen Chief Executive, E-Square Inc.
Mr. Pedersen joins the
discussion with Hitachi Group
companies

Peter D. Pedersen
Chief Executive, E-Square Inc.

I find it extremely interesting and significant that the Hitachi Group has sketched out what it wants to do as a company and has developed and adopted self-assessment tools based on its eight CSR policies. I also think that it was excellent that even the process of deciding on the evaluation tools was itself carried out in participation with the main Group companies and entailed a thorough debate.
In many cases, expanding CSR management to the group becomes an issue. It is not uncommon for this to reach an impasse because issues within individual group companies remain unresolved. The most effective aspect of Hitachi's CSR selfassessment tools is the common measure for the Hitachi Group as a whole. At the same time, it permits an evaluation that is appropriate to the unique business characteristics of each company within the Group.
I think we can expect to see in the future that each Hitachi Group company will no longer be "evaluating for the sake of evaluating," but will understand the direction for improvement indicated by these tools and will come up with their own ways to further enhance CSR management.

European CSR Project

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A meeting on the European CSR Project

In order to implement CSR activities best suited for Europe, Hitachi's Regional Corporate Centre in Europe launched a CSR project that looked at what the Hitachi Group as a whole-as well as Hitachi Group businesses in Europe-must focus on, and the level of interest of stakeholders in the region. The main themes were promoting environmental projects, encouraging diversity, respecting human rights, and promoting CSR procurement. The project's working group pays close attention to trends in EU policy as it considers plans and measures for each theme. The European Corporate Office of Hitachi, Ltd., is also participating.
The focus in fiscal 2008 was on identifying common concerns of the Hitachi Group Europe, and identifying measures which the Group as a whole could implement. While working to develop these measures from fiscal 2009, we will also emphasize communications with European stakeholders.

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