Employees

We will grow together with our employees by creating an organizational culture that encourages free and vigorous communication imbued with a spirit of respect for humanity in line with our corporate culture of challenge and innovation.

Practical Action: “Sanden's Principle that a Company is as Good as the People it Keeps

Teamwork among employees and within the organization is the basis of a company’s prosperity. Under this basic concept that lives on in the founding spirit of the Company, the Sanden Group aims to be a company where highly motivated employees can conduct business activities globally.
Currently operating businesses in 46 locations in 22 countries and regions, we believe the global market has the potential to provide future growth. To engage in business activities that satisfy customers worldwide, we are focusing on creating work environments where employees who have respect for human rights and diverse values can enthusiastically display their capabilities.

Sanden Group Human Rights Policy

Sanden Group Human Rights Policy

Sanden Group is committed to respect for human rights and health and safety based on our corporate philosophy through our business pursuit of next-generation air conditioning systems that are friendly to the earth and people. In addition, for all employees, we strive to keep improvement a corporate culture and workplace environment that respects fundamental human rights.
This policy is a direction for all of our future activities, we strive to identify potential and actual risks to all stakeholders, to avoid, reduce, and prevent them, and to make the necessary improvements to realize this direction.

1.Respect for International Norms
The Sanden Group, which is engaged in global business activities, recognizes that respect for human rights is an important social responsibility and is committed to human rights and labor issues, respecting the United Nations International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights), the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, the ten principles of the UN Global Compact. We also comply with the laws and regulations of the relevant countries and strive to protect basic human rights.

2.Scope of Application
This policy applies to all officers and employees of Sanden (Sanden Corporation and its consolidated subsidiaries). We also expect all business partners to support this policy. And we request our suppliers to understand and comply with this policy.

3. Identification of Human Rights Risks
We will identify potential or actual human rights risks associated with our business and establish and continuously operate system to prevent or mitigate risks.
We will identify and manage and continuously monitor human rights risks, including regional risks in our global activities.

4. Human Rights Due Diligence
We have established and will continue to implement a human rights due diligence system to fulfill our responsibility to respect human rights.

5. Corrective Actions and Remedy
If it is certain that we have caused or contributed to an adverse impact on human rights, we will strive to remedy any adverse human rights impact.
We will also establish grievance procedures in Japan and in each region, and promote the development of effective remedy systems, such as whistle-blowing systems.

6. Education and Enlightenment
We will continuously educate and enlighten employees on human rights to promote understanding of our human rights policy and foster a corporate culture.

7.Progress check and Information disclosure
We will continuously monitor the status of compliance with the Human Rights Policy and make improvements as necessary.
We will also disclose information on our efforts to disseminate the Human Rights Policy and its progress through our website and other means of communication, as appropriate.

8.Priority Policy on Human Rights
Sanden has established the following items as its priority policies. Based on these priority policies, we are working to improve the workplace environment and avoid or eliminate inconsistencies with the actual situation.


Priority Policy on Human Rights

1. Eliminate all discrimination
Have respect for human rights and do not discriminate based on race, ethnicity, beliefs, religion, gender, sexual orientation or identification, nationality, age, origin, physical disability, marital status or the presence of children, illness, social identity, or any other reasons.

2. Eliminate harassment
Have respect for human rights, and do not commit harsh and inhumane acts that include all manner of harassment that would harm individual dignity (harassment, libel, slander, etc.), including abuse, corporal punishment, oppression, or any other harsh or unethical treatment that harms human dignity.

3. Prohibit forced labor and child labor
Eradicate forced labor, child labor or other inhumane forms of labor. Also, do not conduct business with companies that carry out inhumane forms of work.

4. Freedom of association
Respect for workers’ rights (including collective bargaining rights and freedom of association) set forth based on international treaties and laws and regulations of each country and region.

5. Protect privacy
Adhere to the laws and regulations and privacy policies of each country and region including the Personal Information Protection Law, and clarify objective of use, and appropriately obtain, use, manage and protect information.

6. Labor conditions
Obey the laws and regulations of each country and region, and based on internationally recognized standards, appropriately comply with labor conditions pertaining to working hours, days off, breaks, compensation, etc, and emphasize more the fair treatment of employees and ensuring their health and safety, both physical and mental. In addition, we will pay salaries in compliance with the wage-related laws of each country, and don't engage in unfair wage reductions for employees.

7.Diversity and Equal opportunity
Aim to create a workplace where members with diverse attributes, values and experiences can coexist and be accepted by each other, where each person can maximize his or her potential while making the most of each other's talents, and where people can work comfortably while realizing growth and self-realization.

8.Occupational Health and Safety
In accordance with applicable laws and regulations, keep improvement a workplace environment where each and every employee can continue to work healthily, safely, and with peace of mind.

9. Security practices
Periodically review and revise the content of our human rights policy to ensure that it addresses human rights issues that may arise as a result of new social trends and the business environment. Also provide ongoing education to ensure that our human rights policies and procedures are understood.

10. Indigenous Peoples' Rights
Endeavor to consider the human rights and cultures of indigenous peoples in accordance with the laws of the countries and regions in which we operate, as well as international standards such as the United Nations Declaration on the Rights of Indigenous Peoples, the Convention Concerning Indigenous and Tribal Peoples in Independent Countries (ILO Convention No. 169), and the principle of free, prior, and informed consent (FPIC).



Fundamental Approach to Human Resources Development

Sanden Corporation is conducting employee training based on the founding spirit to foster the human resources that can bring together the “technical skills” from the starting point of “human power” and recognizes that this development of human resources is a priority management issue to take the company into the future.
“Human power,” capabilities such as leadership and a strong spirit and passion that can develop and promote the Company.
“Technical skills,” the means to effectively promote the Company in areas such as total quality control, marketing, and strategy.

career management
Sanden Corporation strives to provide equal opportunities for career development and growth as a policy for career management, and endeavors to ensure fair and impartial treatment in employment. We also aim to increase transparency in our recruitment and performance evaluation processes, and provide regular feedback and training to support the development of our employees' skills. Throughout their careers at our company, we are committed to respecting the rights and dignity of all employees.

Human Resources Development Programs
Training based on organizational hierarchy: Mandatory training of the most fundamental courses of utmost importance.
Selection training: Training based on uniform standards of the Company
Specialized training: Specialized technical training conducted at each division
Self-development: Initiatives that support employee self-development

These training programs designed for all employees in stages are focused on “leadership training” in areas such as corporate principles, business skills, and management skills.
To enhance attendees’ learning effects, the roles/responsibilities and knowledge/skills required of those in different levels or positions are visualized and presented to employees.

FY2022 Plan and Achievements
【Training based on organizational hierarchy】>
Target: All employees in Japan

(Attendance rate is the number of attendees/the number of target employees.)

(Attendance rate is the number of attendees/the number of target employees.)

【Education and training designed to enhance the knowledge and skills necessary for work/career advancement】
Target: All employees worldwide

(Number of participants (including total number of participants) / Targeted Participants)

[Reference GRI: 404-2 Employee Skill Enhancement Programs and Transition Assistance Programs]

【Labor & human rights education】
Target: Employees in managerial positions in Japan
No. of Attendees: 20 (Education for managers/supervisors: labor education (60 min./class))

*【Training hours per employee】
Target: 9.4 hours (All employees overseas)

【Implementation rate of periodic performance (MBO)/career development evaluation】
Target: All consolidated Group employees worldwide

(Number of participants/ Targeted Participants)

[Reference GRI: 404-2 Employee Skill Enhancement Programs and Transition Assistance Programs]

【Conducting human rights-related audits and impact assessments】
We have conducted such assessments at some of our offices in Europe and Japan, which account for approximately 50% of the Sanden Group's workforce.

【Number of reported child labor/forced labor incidents】
Target: All employees worldwide

[Reference GRI: 408-1 Operations and suppliers at significant risk for incidents of child labor]

Future Initiatives
Along with maintaining existing training programs, we are taking steps to create a new education system aimed at developing future management personnel.

Diversity Initiatives

In the changing global business environment, Sanden believes in the necessity of promoting diversity, and “respecting and accepting diverse values and taking a proactive approach to utilizing difference.”

For this reason, based on the founding spirit of, “Let us develop with wisdom and prosper in harmony,” we promote the maintenance of an easy-to-work environment where everyone can participate more actively. This is a corporate philosophy builds a corporate culture that respects the dignity and basic human rights of all people, brings together various “knowledge” born from diverse values, and leads to growth with “harmony” and is linked to our aim to be a “company that shines.”

Promoting Women’s Careers

To further promote the empowerment of women, Sanden Corporation and its four business companies are formulating targets and action plans and incorporating the following issues in house.

(1) Increasing the number of female managerial candidates
(2) Increasing the ratio of female full-time employees
(3) Bolstering training for leadership positions
(4) Fostering workstyles that bolster productivity

・ Targets:
(1) Achieve a five-fold increase number of women in management positions compared to 2014 by 2030.
(2) Strengthen hiring of women as both new graduates and career level intake
(3) Enhance training for human resources in leadership positions and develop workstyles that raise productivity.

Action Plans

・Training and Enhanced Motivation
1. Enhance a mindset that respects diversity through training and education at the management level
2. Strengthen support through education and management for a career structure
3. Enhance a mindset of advancement to management by making education and role models more visable

・Increase New Graduate Hire for Women
1. Conduct PR activities aimed at students and in-house information sessions, and participating in external events
2. Improving the workplace environment and preparing an easy-to-work environment

・ Training to Enhance Leadership Resources and Productivity
1. Enhance capabilities through training based on organizational hierarchy
2. Improve operational efficiency
3. Ensure a flexible workstyle
4. Establish a system to support care for children and the elderly

・ Content
1. Implemented life career seminars for younger employees
2. Strengthened recruiting events targeting student
3. Implemented training based on organizational hierarchy
4. Revised workstyles (Introduced telework and a system for flexible shortened working hours)

・Sanden Corporation action plan
Period Covered: April 1. 2020 to March 31, 2025

Promotion of the development of next-generation children
In recent years the number of children in Japan has been decreasing rapidly. To realize a society in which children, who will inherit the future, can be born healthy and raised in safe and secure environments, we consider it important to help our employees balance work and child-raising. We have established targets and measures to be taken, both of which have been announced on the Japanese Health, Labor and Welfare Ministry’s work-life balance information site.

Targets
1. Develop and operate the support system to balance work and family and ensure that all employees are aware of the support system
2. Raise the percentage of employees taking childcare leave to the following levels during the planning period

For male employees: Enable at least one employee to take childcare leave during the planning period.
For female employees: Raise the percentage of female employees taking childcare leave to 90% or higher.

・Sanden Corporation action plan
Period Covered: April 1. 2021 to March 31, 2025

Support System to Balance Work and Family

1. Leave system for child and elderly care
(1) Childcare: Up to 18 months old, or 2 years old when a child cannot secure a nursery school (Rate of return to work following taking childcare leave)Male employees are entitled to take childcare leave at birth (postpartum paternity leave) for up to 28 days. The paternal childcare leave can be divided into two installments.

(2) Elderly care: Up to 1 year
2. Child support/care support leave system (flexible short time work)
*From 2020, flexible childcare work hours have been extended until the child reaches the sixth grade of elementary school and the number applied for is now unlimited.
3. Leave system for nursing care Five days leave per year, and up to 10 days where care involves 2 or more people
4. Return to work system
A system to re-hire those who resign from the Company due to pregnancy, childbirth, caregiving, migrant relocation, or marriage relocation.
5. Childcare service support system
Subsidies for expenses incurred when using designated family support centers. This system can be used up to 12 times a year, to cover up to 50% of the amount paid per use a family support center (upper limit of ¥5,000).
6. Annual paid-holiday system based on hourly units
This system enables employees to take paid leave in hourly units up to a total of five days for the fiscal year concerned.
7. Refreshment holiday system
This system is designed to promote the taking of annual paid vacation time and provides for a total of three days leave for individual or family birthdays and anniversaries and the planned acquisition of two consecutive annual paid leave days.
8. Recurrent holiday system
Five days of leave (two days of special leave and three days of annual paid vacation leave) at critical stages in each employee’s life (ages 30, 40, 50, and 55) to recharge both the mind and body. This make a total of nine days possible when taking into consideration the use of weekends before and after taking leave.
9. Telework system
A system to enhance work-life balance by enabling employees to work at home and thereby allow for such activities as childcare, nursing care, and nursing. This system reducing the time required for commuting and creates an easier lifestyle by relaxing rigid continuous work requirements such as time required for commuting and other circumstances.
10. Self-development and volunteer work
Short-time work system to allow for self-development to gain qualifications and knowledge acquisition by attending school and participating in volunteer activities.
11. Cafeteria plan
Sanden introduced the “cafeteria plan” as a policy to provide for employee welfare ensuring the safety and well-being of employees and supporting their individual and organizational growth. The menu for the cafeteria plan includes items for balancing work, such as assistance for services related to childcare and nursing care, and menus that allow employees to take leave.

Employment of people with disabilities

We believe that it is our corporate social responsibility to achieve the statutory employment rate of people with disabilities throughout the Sanden Group. We have set a target of 3% (statutory employment rate of 2.3%), and the employment rate of people with disabilities was 3.46% as of the end of December 2022.
In addition, we reviewed the employment management system and assigned a manager (support person) to each area to conduct operation management. The support person regularly conducts an interview with employees with disabilities, so that the issues expected to face can be resolved beforehand, and they can work stably in each area.
To maintain the employment rate of people with disabilities at 3% or higher after fiscal 2023, we will continue to place importance on dialogues between those with disabilities and the support persons and strive to create a better work environment for them.

Increase the Ratio of Women in Management Positions

As of the end of December 31, 2022: 22 women served in managerial positions (Sanden Group’s consolidated total (worldwide)) In fiscal 2022, Sanden strengthened the development of the next generation of leaders by providing leadership education through young talent training programs. We will implement the development of a motivating environment and flexible work styles not only for women but also for everyone.

Active recruitment of foreign employees

To accelerate the global development of our business, we view the securing and training of human resources across the globe as one of our highest priorities and continuously promote the employment of foreign nationals —both new graduates and mid-career human resources—every year.
Currently, 65 foreign nationals work for our business sites in Japan, 20 of which play an active role as executive officers or managerial positions. (As of the end of December 2022)

Employment of foreign nationals (number & rate)
(Employees with foreign nationality in each country in the global consolidation)
Target: All consolidated Group employees worldwide

(As of the end of December 2022)

[Reference GRI:405-1 Diversity of governance bodies and employees]

Conducted to date

・Strengthen PR activities by holding events for female students

● From fiscal 2015
・Held a job information fair to attract more new graduates
・Visits to women’s universities by employment recruiters
・Held events to promote interaction with female employees and conducted business site tours for female students
・Conducted PR activities, including lecture meetings, outside the company
・Actively provided external education/training opportunities

●From fiscal 2016
・Worked on workplace improvement and expansion of job categories aimed at diversity management
・Increased the recruitment of female students majoring in science and engineering
・Strengthened PR activities, including holding events for female students
・Started workplace interviews with female employees

● From fiscal 2017
・Strengthened training for leaders based on organizational hierarchy
・Conducted exchange meetings with female employees at other companies
・Held meetings for the exchange of opinion for female employees during childcare

● From fiscal 2018
・Introduced telework system through reforms to working styles
・Introduced a system of shortened working hours to facilitate hospital visits, health management, self-development and volunteer participation

● From fiscal 2019
・Extended flexible childcare work hours until the child reaches the sixth grade of elementary school and the number applied for is now unlimited.

● Fiscal 2020
(1) Develop internal goals and action plan to empower women in the workplace and to educate the next generation

(2) Career formation support
Sanden is conducting training programs based on organizational hierarchy to help employees advance their careers. The training program includes “life career plan training,” designed for employees to make not only a career plan but also a life plan so that they can lead a fulfilling life. We have developed a tool that enables employees and their superiors to work together to make a career or development plan.

(3) Awareness raising on promotion to managerial posts
Sanden is implementing programs to develop leadership capabilities as part of training based on organizational hierarchy to increase employees’ awareness of promotion to managerial posts.

(4) Increasing the ratio of female full-time employees
To increase the ratio of female employees, Sanden allocated time to talk directly to female employees during company information sessions. We listen to real-life stories about balancing work and childcare and establish a vision for work after entering the Company.

(5) Workstyles that enhance productivity
For all employees to be motivated to work, Sanden is implementing a compensation system based on the responsibility of roles and the development of flexible working styles.
- Applicability to recurrent holidays and increase in number of days
- Introduce telework allowance and expand applicability and number of days

●Fiscal 2021
Sanden Automotive Climate System Co., Ltd. and Sanden Advanced Technology Corp. received “Kurumin” certification as a company that meets certain standards on childcare support based on the Act for Measures to Support the Development of the Next Generation.

●Fiscal 2022
In response to the revised Child Care and Family Care Leave Act, Sanden introduced a new system that allows male employees to take childcare leave at birth (postpartum paternity leave).
With regard to bonus calculation for short-hour workers, the handling of reduced working hours was changed from “absence” to “attendance.”

* At present, the two companies have been merged into Sanden Corp.

In recognition of the aforementioned efforts to develop childcare and nursing care leave systems that take into account work-life balance, promote the activities of women in the workplace, and create a comfortable working environment, the Company received Gunma Prefecture Ikiiki G-Company Gold certification.


Building Sound Labor and Management Relationships

Sanden Group's policy on labor-management relations is to respect the rights of workers, including the freedom of association and the right to collective bargaining in accordance with local laws and regulations, and to establish rules for labor-management negotiations, wages, working hours and other working conditions in order to maintain and improve stable labor-management relations and working conditions. We will also hold regular labor-management consultations to build trust and maintain amicable labor-management relations.
In addition, The Sanden Group introduced the Labor and Management Cooperative System in 1989 with the objective of promoting better mutual understanding between the labor union and management and enabling them to work collectively in addressing various issues. This collaboration has facilitated the creation of sound labor and management relationships, including the structuring of frameworks toward improving the working environment and productivity.
The number of union members as of December 31, 2021, was 1,056.
The ratio of union members to the total number of employees is 70% (1.056 union members / a total of 1,507 employees).