We at Yokohama Rubber have launched a new medium-term management plan as Grand Design 2020 (GD2020). The plan covers the three years from 2018 to 2020.
Corporate Social Responsibility (CSR)
We have selected issues to address in connection with corporate social responsibility in reference to six categories of stakeholders. Tackling each of those issues will occasion measures for shaping a better world through our operations.
In human resources management, we are working to revitalize our organization by training and mobilizing human resources effectively. We established a task force two years ago identify ways of promoting fuller participation by women in the workplace. That initiative was in keeping with new Japanese legislation. And it has included studying ways to permit employees to work at home as necessary to care for young children and elderly parents. In another human resources initiative, we have contracted with the nonprofit organization Prop Station to provide fulfilling employment to persons with disabilities.
A work-at-home option and other measures for supporting employees in caring for young children and elderly parents (photo: members of the task force that is spearheading our initiatives for accommodating gender diversity)
An initiative for providing disabled individuals with work they can do at home (photo: disabled young people who attended a Prop station seminar to learn about vocational opportunities)
We will upgrade our corporate governance globally by positioning our regional management companies as holding companies and by exercising strengthened governance at our subsidiaries through those companies. That will include appointing internal auditors at the regional management companies to monitor the subsidiaries. It will also include setting up whistleblower hotlines worldwide to help detect problems early and to prevent small problems from escalating.
We will also upgrade corporate governance by making changes in director compensation and in the composition of the board of directors. As of this year, directors will receive part of their compensation in the form of shares. That is an effort to heighten sensitivity in management to the needs and expectations of our shareholders. In addition, we will change the composition of the board of directors. The change will consist of increasing the proportion of nonexecutive directors on the board.
We work to minimize overall risk by managing systematically the different categories of risk that we encounter. We conduct risk management through several councils and committees, including the CSR Council, the Risk Management Committee, the Central Safety and Health Committee, and the Corporate Compliance Committee.
- Risk Management
- CSR Council
- Corporate Compliance Committee
- Central Safety and
- Central Disaster
- Environmental Council
- Personal Information
- Export Control
- Information Security
In finance, we are counting on the growth strategy described above to raise profitability. And we hope to generate a three-year cash flow of ¥200 billion. In addition, we will work to increase our financial efficiency by conducting cash management on a consolidated basis.
These measures will help reduce interest-bearing debt and otherwise fortify our financial position. And they will help enable us to provide sound return to shareholders. We aim to maintain a payout ratio of 30%. Investment will take place within the scope of depreciation.
Improve profitability through deploying growth strategy and achieve 3-year cash flow of ¥200 billion
Debt/equity ratio of 0.6
Payout ratio of 30%
Within scope of depreciation
(except strategic investments)
Maximize financial efficiency by conducting cash management on consolidated basis