Aware of the social responsibilities incumbent on the Sumitomo Rubber Group, we always work to assess what is expected of us and reflect such expectations in our business activities. To this end, regular communication with our stakeholders is indispensable. Along with the globalization of our business, the scope of our stakeholders has expanded to include ever more diverse people from regions around the world. We strive to demonstrate integrity in all our business activities so that we can earn the trust of all our stakeholders.
How We Communicate with Stakeholders
Features
Main responsibilities
Communications method
Customers
Automobile manufacturers, manufacturing companies, sales companies, sports facilities, etc.
Quality management
Development of safer products
Raising public awareness of and literacy regarding safe driving
Providing product information and services
Customer consultation and service contact
Customer response through service and sales departments
Providing information via website and other media
Exhibitions and events, etc.
Business partners
Rubber raw materials manufacturers, other materials manufacturers, trading companies, processing companies, etc.
Fair and reasonable procurement
CSR procurement
Dialogue through day-to-day business
Confirmation visits to procurement partners, and feedback
Questionnaires to procurement partners
Explanatory meetings, etc.
Local community
Residents, municipalities, local governments, educational institutions, and other organizations near factories and offices
Social contribution activities
Green initiatives
Preserving biodiversity
Participation in local events
Cooperation with NGOs and NPOs in social contribution activities
Participation in economic and industry organizations
Dialogue with local governments, etc.
Shareholders and investors
Number of shareholders: 37,463 (individual and institutional investors, etc.)
(as of December 31, 2023)
Return of profits to shareholders
Enhancement of corporate value through dialogue with shareholders and investors
General meeting of shareholders
Timely disclosure of news releases and publications
Issuance of financial information, including fact books and shareholder communications
Providing information through internal newsletters, intranet, etc.
Consultation with labor-management councils and employee representatives
Compliance consultation service
Round-table discussions with the president to exchange views with management
Integrated Report questionnaire, etc.
Dialogue with Customers
The Sumitomo Rubber Group
Gathering Customer Feedback and Making Use of It to Improve Products and Services
To improve customer satisfaction, the Sumitomo Rubber Group has designated the sales and quality assurance departments of each base as contacts for accommodating customer opinions and requests. We properly respond to these inputs while upgrading our products and services based on the information collected from these sources.
Moreover, we have established customer consultation desks for each business. In this way, we do our best to provide customers with easy access to our contacts for inquiries and ensure that any question or complaint will be addressed swiftly and appropriately.
Initiatives Undertaken by the Tire Business in Japan
Since the Dunlop Tire Sales HQ opened a “Customer Consultation Office” in fiscal 2001, we have been working to improve customer satisfaction by reflecting the valuable feedback we receive from our customers in our goods and services.
In order to reduce our customers queuing time when they call us with inquiries, as most of the inquiries are brought via phone, we have created a Q&A database based on the questions we have received so far, and are working to provide highly precise answers as quickly as possible.
Initiatives Undertaken by the Sports Business
The Sports Business HQ has established the “Customer Service Department” as a contact for securing a direct communication channel between the Company and customers of our golf- and tennis-related products. Since then, we have striven to swiftly yet carefully address feedback from customers and thus help each enjoy an abundant sports life.
Furthermore, customer feedback is relayed to all relevant departments and utilized in our product development and quality enhancement activities aimed at securing customer satisfaction.
As a leading manufacturer of golf and tennis equipment, we will confidently and responsibly address customer feedback and thereby enhance the value of the Dunlop brand.
Initiatives Undertaken by the Industrial Products Business
DUNLOP Home Products, Ltd., a Group company tasked with the marketing of gloves and living supplies for consumer use, has established a customer consultation desk to promptly relay valuable inputs from customers, be it opinions or complaints, to relevant departments to inform their efforts to develop new products and improve the content of services.
Enhancing Operational Techniques and Service Quality
We held the 13th DTS Nationwide TB Tire Work Competition, an event that allows staff at Dunlop Tyre Shops (DTSs) to pit their techniques related to the replacement of truck and bus tires against those of their colleagues, in September 2023 in Chiba Prefecture (Tyre Land Shinminato).
The number of accidents in 2022 involving large vehicles falling off their wheels, which is also a social problem these days, remained high at 140, the highest number in the industry to date. This issue is deeply related to our core tire replacement work, so it is essential that we adhere to safe and reliable work practices. With this background in mind, the 13th event was held under the theme of “Supporting the safe transportation of our customers through high technical capabilities and safe, reliable work while improving work efficiency.” The 10 contestants who had won through the preliminary rounds in each area competed against each other in practical skills and written exam.
After careful consideration, Mr. Hirata of Chubu Tyre Center Co. was chosen as the winner. His safe and efficient high-level technical skills were highly evaluated, and he became the first contestant from a partner store to win the competition since the event started.
Through the contest, we aim to promote safe, reliable, and efficient work practices and to standardize work techniques at all directly managed stores and partner stores. In addition, we aim to improve the workers’ motivation by reducing their workload and supporting work safety. We also seek to enhance the quality of service across the group by passing on and disseminating work techniques.
A group photo of contestants
Contestant at work
The winner, Mr. Hirata (third from the left)
Raising Public Awareness regarding the Proper Use of Tires and Tire Maintenance Methods
For 16 years since 2008, we have sponsored DUNLOP Nationwide Tire Safety Inspections to prevent traffic accidents attributable to poor tire condition. As of the end of 2023, the total number of cars inspected amounted to 116,000.
In 2024, this inspection campaign, held throughout Japan at Tyre Select stores, started on April 8, designated as the “Tyre Day” by the Japan Automobile Tyre Manufacturers Association, through April 30. Through this annual campaign, we conduct various tire inspections, including measuring tire pressure and checking remaining tread depth as well as for any other damage to the tire. In addition to providing customers with professional inspections, we have utilized the campaign period to raise driver awareness of the importance of tire inspections by distributing leaflets at storefronts. Furthermore, we endeavored to facilitate the widespread recognition of the need for periodic tire inspections and maintenance via the official X (previously Twitter) account of the Company’s directly managed stores, and websites and other social media of each store. Looking ahead, we will continue to provide tire inspections so that our customers can enjoy safe and secure
driving.
Implementation Status of Inspections under the Dunlop Tire Safety Project
*Note:In 2020 through 2021, we performed these inspections over shorter implementation periods at a significantly reduced number of locations due to the COVID-19 pandemic.
Safety Inspections for Motorcycle Tires
As part of DUNLOP Nationwide Tire Safety Inspections, since 2012, we have annually conducted safety inspections for motorcycle tires around August 19, which has been designated “Motorcycle Day.” On the inspection day, we provide exterior inspections to determine the remaining tread depth, the degree of surface damage or wear, and other tire conditions. We also furnish “check cards” featuring inspection results to customers. In this way, we strive to help motorcycle riders raise their awareness regarding the importance of day-to-day tire inspections.
From 2020 to 2023, safety inspections for motorcycle tires were cancelled to prevent the spread of COVID-19 infections.
Staff conducting tire safety inspections as part of an inspection campaign conducted in August 2019
Dialogue with Suppliers
The Sumitomo Rubber Group
The Sumitomo Rubber Group is striving to enhance dialogue with residents of local communities and other stakeholders.
For details, please refer to Social Contribution Activities.
The Sumitomo Rubber Group is striving to enhance dialogue with residents of local communities and other stakeholders.
For details, please refer to Social Contribution Activities.
Measures to Promote Constructive Dialogue with Shareholders
The Company will conduct dialogue with shareholders with the aim of enhancing its corporate value based on the following policies:
①The Company strives to realize dialogue in line with the interests of various stakeholders, with the officer in charge of accounting and finance and the officer in charge of general affairs playing central roles in investor relations (IR) and shareholder relations (SR), respectively.
②The Company’s relevant departments engage in organic, cross-sectional coordination in order to support constructive dialogue with shareholders, institutional investors and other stakeholders. As part of IR activities, we disclose various data via the IR section of the Company’s corporate website and, in 2022, established the IR Office. The Company also hosts IR briefings for analysts and institutional investors. In terms of SR activities, the Company issues various publications for shareholders and prepares integrated reports to provide updates on the status of its business operations, ESG management and other matters while maintaining direct engagement with institutional investors. In these ways, the Company strives to improve its corporate value.
③The Company considers the opinions gleaned through dialogue with shareholders and investors valuable to the further enhancement of its corporate value. Accordingly, these opinions are periodically reported to the senior management and the Board of Directors. This enables the Board to deliberate on the necessity of acting on said opinions and study measures for doing so.
④The Company carries out surveys of the actual owners of its shares to determine the details of its shareholder composition. Results of these surveys enable us to take a more proactive approach to IR and SR activities and promote effective shareholder communications.
Targets
Methods, frequency, etc.
Examples of themes
IR
Institutional investors and analysts
A total of 171 financial results briefings and small-group meetings were held (71 of these were held for overseas audiences).
Details of quarterly operating results and dividends
Future outlook on operating results
Content of the Mid-Term Plan and its progress, etc.
SR
Institutional investors
A total of 11 companies(10 domestic and 1 overseas) were interviewed individually online.
Initiatives to achieve our reduction targets for CO2 emissions
Progress of the Mid-Term Plan
Independence of outside officers, etc.
Respect for Voting Rights Exercised by Shareholders
Sumitomo Rubber Industries, Ltd.
Sumitomo Rubber Industries has developed an environment supportive of individual shareholders who seek to bring their opinions as investors to inform its business management. As we aim to heed the opinions of as many shareholders as possible, we have made it possible to exercise voting rights online via PCs, smartphones, and other devices.
The number of votes cast via the Internet at the Ordinary General Meeting of Shareholders held on March 28, 2024, amounted to 1,270,129, up 66,028 year on year, and accounted for 48.4% of total votes.
In addition, the notice of convocation for the General Meeting of Shareholders was delivered earlier and posted on our corporate website, along with its English version. As such, we strive to maintain a supportive environment for all shareholders who exercise their voting rights.
As a result, the ratio of voting rights exercised at the aforementioned General Meeting of Shareholders totaled 88.8% (based on the number of votes), suggesting that a considerable proportion of voting rights were exercised.
Composition of Shareholders by Type (as of December 31, 2023)
Our Policy on Returning Profit to Shareholders
The Sumitomo Rubber Industries aims to continuously improve its business and thereby maximize the volume of positive cash flows from operations in order to raise its stock price. We believe that such improvement is the most important form of returns to shareholders.
To this end, we allocate cash inflows from these endeavors to capital expenditures and R&D. Also, we intend to maintain a robust and stable stream of cash dividends over the long term while comprehensively reviewing our situation with respect to retained earnings, etc. At present, we have no plan to repurchase treasury stock for the purpose of shareholder returns.
In addition, although this is not necessarily a commitment set in stone, we do tell investors at our regular financial announcements that we are aiming for a dividend payout ratio of at least 40%. Our group has always endeavored to uphold high standards when it comes to paying out steady dividends over the long term, and we have no intention of changing our thinking on investor returns in the future.
The Company and the Sumitomo Rubber Trade Union (which had 6,118 general members as of December 31, 2023, excluding officers or managers) maintain good relations based on the sharing of information by management and an approach of prior consultation. We believe that the growth of the Company and the pursuit of employee happiness are objectives shared by labor and management, and we have a history of productive discussions at the various labor–management committees. For example, we engage in activities in which labor and management are united in the pursuit of their objectives, such as when we organized a Labor–Management Wages Study Group comprising personnel from the union leadership and the Company’s Human Resources Department, with the aim of reviewing the human resources system and working conditions. The study group continues to meet on an ongoing basis.
Through this study group, we worked to make the paid leave system more flexible and ease conditions for taking shorter working hours for childcare and nursing care in fiscal 2023. Also, we repeated discussions on the ideal personnel system. In fiscal 2024, we will continue our efforts to promote workstyle reforms and move ahead with various activities, with labor and management continuing to work in cooperation.
Mechanisms Designed to Reflect Feedback Gleaned from Dialogue with Employees in Business Management
The Sumitomo Rubber Group
Since the first round of an Organizational Health Survey in November 2019, Sumitomo Rubber Industries has endeavored to improve its organizational culture via the implementation of the Be the Change (BTC) Project, striving to address how employees feel about the Company while implementing similar and other surveys on an ongoing basis.
Employee–Management Communication
The Sumitomo Rubber Group
The Company holds talks attended by officers so that top management members can share their thoughts and visions with employees. Looking ahead, we will hold these events while constantly improving opportunities for meaningful mutual dialogue and pursuing the goal of sharing visions with employees and encouraging them to set their sights higher.
Open Discussions on the Midterm Plan—Direct Communications with President
Guided by his own aspirations, the President visited our domestic business bases over the period spanning March to April 2023 to engage in dialogue with employees regarding the Midterm Plan, which was externally disclosed in February. As a result, a total of 13 dialogue sessions were held with the attendance of 2,300 employees. Through these sessions, President directly communicated his thoughts on the Midterm Plan while sincerely addressing a number of questions from employees as part of efforts to nurture a sense of unity among the workforce. In addition, 57% of attendees responded to questionnaires distributed after dialogue. We consider this figure a measure of the degree of employee interest in the dialogue. Going forward, we will develop measures to raise this percentage in the course of hosting subsequent rounds of dialogue sessions.
While our plans call for hosting similar events in the future, we intend to hold sessions in which officers and heads of departments share their policies and otherwise engage with members of each workplace under their supervision.
We will continue to cherish bidirectional communications between top management members and employees in order to secure our ability to take on the challenge of navigating the Group amid a radically evolving, harsh business environment, with all Group members, working as one team.
President Yamamoto sharing his thoughts on the Midterm Plan at a talking session
A Panel Discussion Hosted by Directors
We held a panel discussion hosted by five internal directors, including the President, in order to address an issue revealed by recent employee surveys in connection with the incomplete communication of business strategies, which may possibly inhibit a full understanding of subjects among employees. These discussions were livestreamed to workplaces across the board.
The event was particularly focused on helping the discussions’ audience understand each director’s personality, ways of thinking and aspirations for the success of the Sumitomo Rubber Group. Thus, each panelist shared his drive to achieve transformation and ideals regarding what top management team should look like. We also utilized a tool designed to enable employees to post their comments in order to facilitate bidirectional communications between top management members and employees and help foster a sense of unity among them.
