Stakeholder Engagement

| Policy | Creating Society Together

KDDI values the dialogue with all of our stakeholders – customers, shareholders, business partners, employees and their families, and regional communities – who have given us their support. We will continue to build up collaboration with our stakeholders and proactively address the issues facing society in our aim to contribute to the development of a prosperous communications-oriented society.

KDDI perceives all stakeholders as its customers, and conducts various activities geared toward fully satisfying all of these stakeholders. We also use the GRI (G4), SASB, IIRC, ISO26000, and other global CSR standards and checklists created from items from hearings with investors to create and implement policies that address the analysis of our current conditions and issues.

| System, Activity and Results | Principal Channels for Dialogue with Stakeholders

Service users (Primary point of contact: Customer Center)

As of the end of March 2016, KDDI has approximately 45.91 million au customers. By listening and responding to the opinions and demands of our customers and those that reach us by SNS, Twitter (R), and other means, extracting the social issues of stakeholders, and providing each division feedback, we are making efforts to achieve a sustainable society.

Stockholders and investors (Primary point of contact: IR Department)

In FY2015, we held individual meetings with investors 977 times. Also, 980 stockholders attended the general stockholder meeting held on June 22 in 2016.

Local communities (Primary point of contact: CSR & Environment Management Department)

In FY2015, KDDI held free lectures through its KDDI Smartphone and Mobile Phone Safety Classes (formerly KDDI Mobile Phone Learning Classes) for about 680,000 elementary, junior high, and high school students and about 3,200 senior citizens. We also furthered our interaction with regional communities through society contribution activities such as environmental conservation activities conducted individually in eleven branch areas nationwide, donations, etc.

NPO/NGO (Primary point of contact: CSR & Environment Management Department and individual regional offices)

In FY2015, KDDI cooperated with government agencies, NPOs, and NGOs nationwide to implement forest conservation activities, coastal cleanup activities that inhabit rare organisms, and other various environmental conservation activities.

Administrative organizations (Primary point of contact: Government and Industrial Affairs Department)

In FY2015, KDDI dealt with revisions to the Electronic Communication Business Law and other laws based on answers from the Ministry of Internal Affairs and Communications Information and Communications Bureau "2020-ICT Infrastructure Policy Special Committee. We also participated in the Ministry of Internal Affairs and Communications" ICT Service Safety and Security Research Committee" which reviews and enhances consumer protection rules.

Employees and their families (Primary point of contact: General Administration Department)

In FY2015, KDDI held the KDDI Sports Festival offering the president, management, and employees the opportunity to interact in which approximately 2,400 employees and their families participated.

Business partners (Primary point of contact: Purchasing Management Department)

In FY2015, in order to recognize the risk in the entire supply chain and strengthen management, KDDI implemented a CSR procurement survey for approximately 90% of its top business partners based on order amount and received replies from almost 100%.

| System | Feedback to Management

KDDI has built a system for incorporating stakeholders' views in the management process.
Senior managers including the president discuss and work to resolve customers' views and demands in the monthly TCS Committee meetings. Issues discussed directly by management in individual meetings are shared as necessary with shareholders and investors. The opinions of regional communities put forward in KDDI Smartphone and Mobile Phone Safety Classes and customers' issues identified from CSR achievement questionnaires are reported to and solutions considered by the CSR Committee chaired by the General Manager of the Corporate Sector (Executive Vice President, Representative Director). The results of the CSR Committee's deliberations are reported to the Corporate Management Committee.

| Activity and Results | Efforts in FY2015

As part of our efforts to address the four material issues for CSR, KDDI engages in dialogues with various experts to receive advice on our activities. In FY2015, with rising social demand for CSR in the supply chain, KDDI invited experts and businesspeople with abundant knowledge and experience in the field of CSR procurement to participate in stakeholder dialogues, with the aim of deepening our understanding of CSR procurement and green procurement. Through these dialogues, we recognized the need for management to deepen their consideration of CSR procurement as a company-wide issue. In addition, we reaffirmed the importance of working with business partners to make continuous improvements with respect to each issue, for the actual products at the actual sites.
In addition, KDDI participated in the Global Conference on Business and Human Rights organized by Caux Round Table Japan and the United Nations Working Group on the Issue of Human Rights and Transnational Corporations and Other Business Enterprises, which provided an opportunity to learn about the current status of various issues and how they are being handled.

Recent Activities

Dialogue Archive

| Activity and Results | Participation in Initiatives

KDDI endeavors to participate and play a leadership role in initiatives and organizations inside and outside Japan in order to contribute to the development of an affluent communications-oriented society.

International Standardization of Telecommunications

KDDI proactively participates in International Telecommunication Union (ITU) activities to create international standards for information communications. In particular, in the field of wireless communication, KDDI chairs the Radio Regulation Board (RRB) whose 12 members are elected from all over the world, and we lead the way in solving problems related to satellite communications and airwaves which cannot be solved under current regulations for effective and equitable use of radio waves. In addition, KDDI chairs and vice-chairs the following study groups (SG) and task groups.

Positions in ITU

  • ITU-R (Radio Sector): RRB Chair, SG4 Vice-chair (Satellite Communications)
  • ITU-T (Standardization Sector): SG3 Chair (Rates & Policy), SG9 Vice-chair (Video Transmission & CATV), SG17 Vice- Chair (Security)
  • ITU-D (Development Sector): SG1 Issue 5 Chair (ICT in Rural Areas)

Building a Safe and Secure Society

KDDI strives to contribute to safety and security in various areas closely related to daily lives and livelihoods including the internet usage environment. As part of these endeavors, we play a leading role in educational activities as a core member of the Japan Smartphone Security Association which works to create a safe environment for smartphone use. KDDI also participates as a founding member in the Accessibility Consortium of Enterprises which promotes advancement of people with disabilities. KDDI Chairman, Tadashi Onodera, currently serves on the board of directors.

Main Initiatives and Organizations in which KDDI Participates and Occupies a Position (As of August 2016)

  • Security Promotion Realizing Security Measures Distribution (SPREAD): Vice Chairman
  • Japan Smartphone Security Association: Vice Chairman/Director
  • Japan Network Security Association (JNSA): Vice Chairman
  • Accessibility Consortium of Enterprises (ACE): Director

Conservation of the Global Environment

KDDI participates in formulation of ecology guidelines as a member of the ICT Ecology Guidelines Council founded in June 2009 and works to promote the spread of energy-saving devices. In addition, KDDI has acquired the Eco ICT Mark established under the guidelines and endeavors to further environmental friendliness and reduction of environmental impacts.

  • Council founded for the purpose of establishing energy saving indices to be referenced when procuring ICT devices and data centers. The constituting members are: Telecommunications Carriers Association (TCA), Telecom Services Association (TELESA), Japan Internet Providers Association (JAIPA), Communications and Information Network Association of Japan (CIAJ), and ASP-SAAS Industry Consortium (ASPIC).