CSR Theme and Key Business Activities

Komatsu’s CSR Priorities

In 2010, with the support of Business for Social Responsibility (BSR), a nonprofit organization, Komatsu undertook a materiality assessment to accomplish the following objectives:

  1. Identify a set of CSR issues and prioritize these CSR issues by their relevance to our business and their importance to our stakeholders
  2. Define a set of global CSR themes and activities

From a list of many CSR issues, we selected those relevant to Komatsu as a construction/mining and industrial equipment manufacturer. We then evaluated CSR issues on their importance to our business. To understand the relevance of CSR issues to our business, we interviewed senior executives across our company, including leaders of regions outside Japan. These interviews helped us to understand the degree to which CSR issues interact with our business priorities and operations. We then evaluated CSR issues on their importance to our stakeholders. To understand the relevance of CSR issues to our stakeholders, we reviewed external reports, viewpoints, and public statements published by governments and policy makers, issue experts and advocates, media, suppliers, and customers. We also took into consideration BSR’s view of stakeholder importance.

Evaluating CSR issues

We evaluated CSR issues based on the degree of importance to our business shown on the horizontal axis, and the degree of importance to our stakeholders shown on the vertical axis.

The CSR issues important to both businesses and stakeholders came to the top right quadrant.  We narrowed our focus to sixteen material issues across six categories. By focusing on the material issues that are most important to our business and our stakeholders, we believe we are in a strong position to leverage our core strengths as an equipment manufacturer and create lasting social impact going forward.

Komatsu’s CSR Priorities

Products, Services, and Customers
  • Products that enhance safety
  • Responsible marketing and customer care
Environment
  • Environmentally-friendly products
  • Environmental efficiency (facilities, such as plants, and job sites)
  • Remanufacturing
Employees
  • Human resource development
  • Safety and health
  • Respecting employees
Human Rights
  • Respecting human rights
  • Equal employment
Ethics and Governance
  • Cooperation with stakeholders
  • Corporate governance and compliance
  • Compliance with social norms of business partners
Local Community
  • Development of local communities
  • Disaster relief
  • Improving local residents' quality of life

Formulating CSR Themes and Key Business Activities

Using the priority issues as a base and after much discussion within the company and BSR, we identified three CSR Themes.

Komatsu’s CSR Themes

  • Enhancing Quality of Life -Providing products required by society-
  • Developing People
  • Growing with Society

In order to achieve these goals, for each of the three areas, we have determined priority activities that align with the mid-term management plan as “activity through our core business”. Also, in addition to its main business, Komatsu believes it is the responsibility of a business to engage in “social contribution activities” in the local community where business is conducted. For the social contribution activities, Komatsu is engaging in the following activities that make the most of the know-how developed in our main business.

CSR Themes Key Business Activities
Activities through core business Social Contribution Activities
Enhancing Quality of Life
-Providing products required by society-
  • Provide products and services that contribute to infrastructure development and improving the quality of life
  • Improve production/safety as well as promote efficiency and energy conservation through innovation
  • Improve environmental efficiency at operation sites and facilities.
  • Reduce the environmental load throughout product life cycle
  • Improve safety (for customers, society, employees, business partners)
  • Promoting environmental efficiency & safety thru initiatives not directly related to business
  • Providing products, services, know-how required by society free of charge
Developing People
  • Human resources development through the KOMATSU Way (employees, business partners)
  • Human resources development through brand management (employees, distributors)
  • Respect employees, diversity
  • Support for developing people of local community
  • Development of next generation
Growing with Society
  • Engage in dialogue with our stakeholders
  • Strengthen our corporate governance and compliance
  • Promote compliance with environmental, labor and social norms within our group and among business partners
  • Disaster Relief
  • Social Contribution utilizing core strength and know-how