Message from the President

Photo: Message from the President

We are committed to helping our connected society prosper.

The international community's drive to tackle global societal issues has gained momentum in recent years, as evidenced in the UN Sustainable Development Goals (SDGs), and the Paris Agreement signed at the 21st session of the Conference of the Parties (COP21) to the UN Framework Convention on Climate Change. Companies too are expected to be proactive partners in the global effort and contribute to sustainable growth through business activities.

We at KDDI Group are committed to sustainable management, through which we seek to offer solutions to social issues and help communities prosper through sustainable growth. As a telecommunications service provider, our focus is on making the increasingly connected world a rich and vibrant place through our telecommunication services.

The KDDI Group Philosophy is at the heart of our sustainable management approach.

The KDDI Group Philosophy is a set of principles that guides our effort to win the goodwill and trust of all our stakeholders. As a telecommunications operator, we are part of vital social infrastructure with an important mission: to provide stable service 24 hours a day, 365 days a year, whatever the situation. Our business by nature depends on the use of valuable public properties such as radio frequencies to provide our services. We are acutely aware of the responsibility this privilege brings ― the responsibility to contribute in the efforts to solve social issues. The KDDI Group Philosophy sets out our vision as a company and the culture we wish to instill in our employees. It is the starting point of our sustainable management approach.

We believe it is essential that all our employees share a common set of values in order for different business divisions to work closely together and create a synergy as we expand our operations globally. Following a revision in 2013, we have been running a campaign to promote the KDDI Philosophy among our employees across the world. Ensuring that we all share the Philosophy and works together to achieve our goals is key to our sustainable management approach.

We listen to our stakeholders to create shared value.

We value all our stakeholders and their voices; we engage with our customers, partner companies, shareholders, local communities, governments and other people who support us, and our dialogues guide us as we tackle a wide range of social issues. This ensures that our core activities contribute to the society and create shared value. The concept of creating shared value is a key driver in our sustainable management vision. In March 2018, we announced the six Material Sustainability Issues to focus on in our endeavor to create shared value:

  1. Safer and more robust connected world
  2. Cyber security and privacy protection
  3. Rewarding workplaces for diverse talents
  4. An energy-efficient, circular economy
  5. Fulfilled life brought through ICT
  6. Respect for human rights and fairness in business

1. Safer and more robust connected world

In the highly connected society we now live in, info-communication services are one of the most critical lifelines. Even in times of emergency, when natural disasters bring down many lifeline services, we strive to maintain safe and robust info-communication services to keep communities connected. By giving people peace of mind and supporting social order and wider economy, we can increase our corporate value in return.

2. Cyber security and privacy protection

We put a full range of safeguards in place to maintain the confidentiality of communications and protect personal data so that our customers can use our services with confidence. Our networks are monitored by a specialist organization 24/7 to protect against cyberattacks and hacking attempts. We also have a group-wide information security framework in place to strengthen our data governance and prevent information leaks from the inside.

3. Rewarding workplaces for diverse talents

Diversity and inclusion are key concepts that drive our initiatives to encourage our employees to fulfill their potential no matter what their gender, age, nationality, language, (dis)ability, sexual orientation or gender identity may be. By getting our people motivated, we improve our competitiveness. We are particularly focused on giving women opportunity; we have been running a leadership development program for women since fiscal 2012 to encourage more women to participate in corporate decision-making. We plan to appoint 200 female line managers by fiscal 2020.
The KDDI Philosophy has also inspired our commitment to health-focused management. We have a range of measures to protect the work safety of our employees, maintain and improve their physical and mental health, and provide a pleasant work environment. Through health-focused management, we embed a "health first" culture in the company and do everything we can to improve the vitality and productivity of our workforce.

4. An energy-efficient, circular economy

KDDI Green Plan 2017-2030 is a set of long-term goals for fiscal 2030, such as reducing KDDI's CO2 emissions by 7% from the fiscal 2013 level. As data traffic increases, power consumption is expected to rise. We are committed to reducing CO2 emissions as part of the global climate action, and one way to achieve this is through technological innovation to reduce power consumption. We also see opportunities for business growth, for example, in the construction of environmentally responsible base stations and innovative ICT services to reduce our impact on the environment.

5. Fulfilled life brought through ICT

We set out our medium-term target for fiscal 2018 as "transforming into a business that provides customer experience value." As the era of IoT and 5G dawns, we will accelerate our work to integrate Telecommunications and Life Design. The foundation of our business activities is telecommunication, and as we expand our offering to include data content, commerce, energy, finance, education and other services that are essential to daily life, we strive to provide solutions to existing social issues and help our customers live their life to the full.
In countries and regions where our global operations are based, we will play our part in the growth of connected communities, using the technologies, experience and know-how we have built up home and abroad over the years to provide telecommunication and related services that work with the culture, social conditions and economy of each area.

6. Respect for human rights and fairness in business

The core principle of the KDDI Code of Business Conduct, which guides our officers and employees in their day-to-day work, is respect for human rights and individuality. The KDDI Group Human Rights Policy, applicable across all group companies, demands that we respect international standards such as the Universal Declaration of Human Rights, minimize the negative impact of our business activities on human rights, and promote human rights awareness. The KDDI Guidelines for CSR in Supply Chain clearly set out our commitment to ensure that our supply chain is free of forced labor, inhumane treatment, child labor and discrimination, and we encourage our business partners to be part of this drive.

As we tackle these six Material Sustainability Issues, we are going to continue listening to our stakeholders, develop innovative solutions to social issues, nurture diverse talents and, through these efforts, increase our corporate value and create a sustainable society at the same time.

April 2018
Makoto Takahashi,
President, KDDI Corporation