Basic Policy

Since the “K” LINE Group conducts business activities around the world, it is essential to build good and solid relationships with various stakeholders, including shareholders and other investors, customers, business partners, and people in local communities and global society. Through interactive communication with stakeholders, we strive continuously to meet the expectations and the needs of society and incorporate them into our business activities in order to fulfill our corporate social responsibility.

 

 

Stakeholders Basic Policy Related Activities
Customers We do our best to respond to customer needs by developing systems for ensuring timely shipping and striving to provide our customers with a wide range of information. We will improve the quality of our services by maintaining safety in navigation and cargo operations to transport the cargo entrusted to us by our customers safely and surely. Services
CSR
Shareholders and
Investors
We have adopted an IR policy designed to meet the expectations of our shareholders and investors. Under this policy, we strive to improve our corporate value further by properly disclosing corporate information on a timely basis and communicating with our shareholders and investors at briefings of every kind, for example. Investor Relations
About Us
CSR
Business Partners We do business based on our Purchasing Policies. These policies are written to ensure compliance and are aimed at maintaining fair and constructive relationships with our business partners. We thus strive to build trust with our business partners and coexist with them as good partners. Purchasing Policy and CSR Guidelines for Supply Chain (PDF)
Environment
Local Community
and Global Society
We contribute to society as a good corporate citizen and work with people around the world toward development. Social Contribution Activities
Environment
Employees We respect the basic human rights of our employees and develop training programs to maximize the ability of each. We also strive to enhance benefit programs and improve working environments to enable each employee to work vigorously and with a sense of safety. Human resource
Social Contribution Activities

【Stakeholder Dialogue】

Worldwide trends in CSR have been on the brink of a new stage in recent years. Now, a long-term perspective in thinking about social responsibility and social mission is more important than ever.
The “K” LINE Group works to create broad-ranging opportunities for communication with stakeholders to ensure that these changing social demands are reflected in management.
As part of these efforts, in February 2014, we invited outside experts to a stakeholder dialogue. Our discussions with them focused on the major CSR issues of safety in navigation and cargo operation, environmental preservation and human resource development. “K” LINE prizes the opinions of these experts as a serious reflection of the expectations of society, and will utilize them in its future business activities.

Participants

From outside the Group

Toshihiko Goto Chief Executive Officer, Sustainability Forum Japan
Dr. Kenichi Takano Professor, Graduate School of System Design and Management, Keio University

 

From “K” LINE (positions as of the date of the dialogue)

Eiji Kadono Managing Executive Officer, Marine Sector (Operational Safety and Human Resources)
Shunichi Arisaka Managing Executive Officer, Technical and Environmental Affairs
Tsuyoshi Yamauchi Managing Executive Officer, Finance, General Affairs, CSR & Compliance
Yutaka Nakagawa Executive Officer, Human Resources (On-shore Division), Business Promotion

 

Facilitator

Ayako Sonoda President, Cre-en Inc.

Expert Opinions

1. Overall CSR

Going forward, an essential aspect of CSR for any company will be determining material issues through communication with outside stakeholders. It is important to understand the various issues facing society through engagement with diverse stakeholders and to work to solve those problems through one’s business activities. Of course, long-sighted, strategic consideration is crucial to identify initiatives that address such issues while simultaneously enhancing corporate value.

2. Safety in Navigation and Cargo Operation

Shipping companies support the global logistics infrastructure. As such, sustainable growth based on operational safety underlies the social responsibility of shipping companies. Business execution at sea carries many risks, and high awareness on the part of employees is vital. For that reason, a firm philosophy with regard to operational safety that is shared organization-wide is necessary, and the corporate culture developed from this philosophy must permeate every employee involved in navigation worldwide, whether at sea or on shore. To maintain safety, exacting risk management from assessment to formulating action plans as well as effective communication are key factors.
The “K” LINE Group regards the establishment and maintenance of a rigorous safety management structure as a major strategic priority, and is working to enhance related frameworks and systems, develop the skills of its engineers and raise awareness. With regard to risks, “K” LINE analyzes accidents and uses the results to create a database in order to formulate more effective safety measures. This kind of constant consideration of new initiatives deserves praise. The group-wide pursuit of safety is, in effect, closely related to improving business results, and operational safety plays a key part in improving corporate value. We hope to see even more solid initiatives in this area in the future.

3. Environmental Preservation

When it comes to initiatives to address climate change and pollution, a clear corporate policy and long-term strategy, in addition to compliance with legal and other restrictions, are absolutely vital. Top-down goal setting provides corporate direction and helps to change awareness internally, while efforts taken to achieve those goals help to win the trust of society. Responding to environmental standards and fuel efficiency demanded by customers from a perspective of social responsibility throughout the value chain contributes to strengthening competitive advantages and economic streamlining, ultimately leading to corporate value creation. From this perspective, we hope to see CSR built into management strategy, corporate policy and long-term goals clearly established and disclosed.

4. Human Resource Development

It is obvious that the “K” LINE Group positions human resource development as a major priority and regards its people as its greatest resource. It is also evident that, despite real efforts, “K” LINE is finding it challenging to ensure that individual employees “take ownership,” fully understanding that the risks and issues they encounter in their daily work are their own responsibility. To create that kind of awareness, simulated experiences, such as role playing, can be effective. Simulations help employees absorb core values and share them within groups, in turn empowering them to take responsibility in unforeseen situations. In addition, building an external human network and actively maintaining contacts outside the corporate organization can facilitate taking responsibility for societal opinions and expectations and reflecting them in business. This contributes to innovation and thus boosts corporate value.

“K” LINE’s Response

Your comments raised our awareness of the need to understand the objective opinions and suggestions of various stakeholders to supplement our own analysis when selecting material issues in CSR, as well as the importance of making the goals and related rationale clear. We also understand that there is a need for us to steadily address the issues brought up in these dialogs and regularly report on progress made.
In addition, we have also understood that a long-term perspective is essential in any type of CSR initiative, and that such initiatives must be coherent with corporate strategy aimed at increasing the value of the company. When formulating our next medium-term management plan, we will build into it a long-term point of view.

 

Kiyokazu Arai
Executive Officer

(positions as of the date of the dialogue)