5 - Honda
Transcription
5 - Honda
Ride the wings... Reach the horizon Contents 004 008 010 Message from President About this report We are A.P. Honda 039 044 045 Stakeholder Engagement Economic Performance Environmental Performance 047 Energy management 049 Water management 050 Waste Management 014 022 026 Honda Global Vision and Philosophy Strategy toward sustainability Corporate Governance 021 From Global Honda to A.P.Honda 027 Good Corporate Governance Structure 030 Code of Business Conduct 033 Anti-Corruption Policy 036 Organization Risk Managemnet 056 104 105 Social Performance Award received in 2014 GRI content index 057 Employee Care for Sustainability 072 Principle of Human Rights for sustainability 076 Product Responsibility 094 Development for Sustainable Society 004 Message from President A.P. Honda Co., Ltd. Message from President A.P. Honda strives to take all challenges to sharing joy to Thai society. Honda Global Vision Honda was established in 1948 by Mr. Soichiro Honda, who strongly determined to bring joy to everyone and to be useful to everyone. Since then, Honda has applied the notion of the founder as the model in business operation in motorcycle, automobile and power product function sectors worldwide. Honda acknowledges four key issues, which are environment, safety, product , quality, and society. Therefore, we have implemented various procedures to best respond to customer needs. Environment and safety missions, especially, have been most emphasized throughout decades of our business operation. Honda has established a strong vision to effectively and successfully accomplish those missions in 005 Message from President A.P. Honda Co., Ltd. terms of “Realizing the Joy and freedom mobility and a sustainable society where people can enjoy life”. Regarding environmental mission, Honda, focuses on the reduction of CO emission in each process. Furthermore, we always examine environmental effects which may be derived from any activities related to our business operation in order to create the concrete environmental management plan. In terms of safety, Honda Motor has announced Global Safety Policy, called Safety for Everyone, in April 2013. For practical implementation of the policy, Honda has delivered it through main 3 pillars of practice. The first pillar is “People”Safety educators. Next is relevant to “Technology”-the mechanics of safety. The third one is “Communication”safety information. We have done all these things with great efforts both in terms of construction of knowledge and provision of full-equipped, modern facilities. The three core pillars are expected to be integrated for the purpose of creating the society of Zero Accident. Delivery of Joy to Thai Society as the 5th S and Society as the 6th. Placing reliance on these standards, we have been presenting the highest quality products to Thai customers through the best dealers for creating, expanding and delivering joy to the next generations. Mid-Term Management Plan and Reflecting on 2014 A.P. Honda started to apply the new mid-term plan in 2014 (2014-2016) which focuses on becoming the most beloved brand to create corporate sustainability under the brand slogan “Power of FUN Project” of which notion is the change the world to be peaceful living society by inventing environmentally-friendly and safety technology. We attempt to create motorcycle that people can have fun with while riding. Furthermore, we announced the leadership in safety and environmental society as one of our significant business goals to expand safe driving training to more users and increase the number of Green Dealers and Green Delivery to become the Low Carbon Society and foster the dissemination of safety and environmental technology. The political unrest in 2014 caused economic depression, and motorcycle market faced severe crisis. The sales figure was 15% lower than that in 2013. However, A.P. Honda managed to adjust strategies to face with the crisis until our market share has considerably increased. Our Big Bike business, especially, has been sharply growing since 2013, and we became the number one leader in the market of 400cc motorcycle. With regard to new motorcycle models, we have launched Honda Moove, integrating intelligent technology such as Idling Stop, Combi Brake, eSP Engine, which are new standards of safety and environmental instruments. This package will also be added in all AT models to be launched afterwards. A.P. Honda started as a motorcycle distributor over 30 years ago, and we have been growing as the business leader since then. We have implemented Honda Global Vision as the model of our business practice, and we were the first in Asia to take a challenge by continuously launching environmentally-friendly products to the market. We are always challenging to be the first company to cease the production of Two-stroke engines and change to Fi system. This is our pride of making Thailand become the leader in global motorcycle market, as well as enhancing our business stability and sustainability. Moreover, we established the distribution network or Wing Centers covering 6S, which are Sales, Service, Spare parts, Secondhand in addition to all these 4S, which are the standards we have emphasized with In terms of social activities, A.P. Honda, in collaboration our dealers and customer needs, in 1989, we added Safety with Honda Wing Center, has run nationwide blood donation 006 A.P. Honda Co., Ltd. Message from President activities for over ten years from which we could deliver more than 100 million cc of blood to the Thai Red Cross Society. In addition, last year we started to built 2 more Safe Driving Centers in Phuket and Chiangmai to accommodate the increase of Big Bike users in tourist destination cities. The centers will be open in 2016. From the above-mentioned business conducts, we were given honor to receive the Thai Chamber of Commerce Business Ethics Standard Test Award for the first time and receive Best Safe Driving Promotion Award from international institutions in the 30th anniversary celebration of Academic Conference on international Traffic Safety. From now on, we are still taking challenges for the purpose to become the most beloved brand in Thai society. Mr.Nobuhide Nagata President of A.P. Honda The first prototype motorcycle located at Honda Collection Hall in Japan, beginning of Honda legend by Mr. Soichiro Honda. 008 About this report 2. About this report A.P. Honda Co., Ltd. A.P. Honda Materiality Matrix High Principle and boundary of the report Furthermore, the policy and vision of Honda Motor have been applied as the basis of making this report as well as Thailand context and localization. The scope of this report is collected from A.P. Honda Headquarter and business subsidiaries, including Honda Safe Riding Center Samrong, Honda Safe Riding Center Bangkok and Honda Big Wing. This excludes other related businesses as manufacturing companies and R&D companies. Honda Motor’s Global Plan has been localized to the Thai context in the following aspects Defining Content process The content of the report was selected from the workshops on the conclusion of average score of sustainability relevant to the organization in each topic. Then, all relevant topics were screened by materiality test participated by the representatives from all function unit. The focus was on the effects on stakeholders, experts’ acceptance, legal provision, regulations, international agreements, implication for opportunity, threat, business risk, as well as the potentiality to foster the organization’s achievement of strategic objectives or enhance the organization’s value. The summary of the test result is shown in the matrix. Importance to stakeholder The report on sustainable development of 2014 was made as the first report of A.P. Honda. It is the compilation of the information about economic, social and environmental performance from 1 January to 31 December 2014 which was made according to the Global Reporting Initiative (GRI) G3.1 We plan to upgrade it to Global Reporting Initiative G4 in the next report. Amelioration Low The materiality test shows the organizational sustainability in terms of economic, environmental and social performances. Data Collection After the materiality test, the material aspect were sent to the relevant departments in order to collect or rewrite the content both qualitative and quantitative information in accordance with GRI indicators and then sent to their supervisors for recheck. After that, all contents were edited and final check as each applied GRI indicator by editorial team to a completed sustainability report. 009 A.P. Honda Co., Ltd. About this report Law compliance /overall (environment) /products and services /air pollution, waste water, waste Employment Labor/relationship management Non-discrimination Logistics Health and safety /product label showing Economic performance Diversity and equal opportunity Training and knowledge sharing Anti-corruption Impact assessment Materials Energy Water Market presence Importance to A.P. Honda High Material Aspects The report focuses on the material aspects influencing the organizational development to sustainability which is in concordance with the nature of the distributor and service provider business. Good corporate governance Employees’ care Responsibility for products and customers to meet customer satisfaction. Environment The A.P. Honda Sustainability Report 2014 can be downloaded from www.aphonda.co.th If you have any inquiries, please contact Ms. Chutimont Jaidee CSR Promotion Department A.P. Honda Co., Ltd. 149 Rodrangkhao Road, Samrong-Tai Sub-district, Phrapradaeng District, Samutprakan 10130 Tel: +66(0) 2757 6111 Fax: +66(0) 2757 6222 E-mail : [email protected] “Associate” be used by Honda in the same meaning of “employee” 010 We are A.P. Honda A.P. Honda Co., Ltd. 3. We are A.P. Honda The distributor of Honda motorcycles in Thailand officially authorized by Honda Motor Japan. Established on 1 March 1986. Registered as a company limited under the Civil and Commercial Code on 28 February 1986 with registered capital of 40 million baht. The Shareholders are comprised of 51% of Thai and 49% of Japanese. The headquarters is located at 149 Rodrangkhao Road, Samrong-Tai Sub-district, Phrapradaeng District, Samutprakan. Operational areas A.P. Honda Co., Ltd. Samutprakan Headquarter Honda Safe Riding Center, Samrong, Samutprakarn Honda Safe Riding Center, Ramkhamhaeng Road, Bangkok Honda Big Wing, Pradit Manutham Road, Bangkok Organization Chart Board of Director - Full time 6 - Part time 4 Director 6 persons Division Sales division After Market President Safety riding & Motor Sport Board of committee Brand & Product Planning Business Planning committee HCG executive New Business Planning Business executive ethics committee Administration Business ethics committee CSR Promotion Network committee External affairs ISO committee Safety committee The total number of associates in 2014 is persons. 421 Confidential committee Recreation committee Welfare committee 011 We are A.P. Honda A.P. Honda Co., Ltd. Product 1.Family motorcycles There are 5 types of motorcycle we are selling : 110 cc 125 cc Wave110i Dream110i Super Cub 2.Scooter motorcycles (AT) 110 cc 125 cc 5.Big Bikes 150 cc 300 cc Zoomer-X , Scoopy i, Spacy i Click125i PCX150 Forza300 110 cc 500 cc 650 cc 700 cc 750 cc CBR500R, CB500X, CB500F 1,000 CBR1000RR 1,100 CB1100EX 1,200 VFR1200F, VFR1200X Crosstourer 1,300 CTX1300 1,800 GOLDWING GL1800, GOLDWING F6B, GOLDWING F6C cc cc Zoomer-X Wave125i Scoopy i cc Spacy i cc 300 cc 125 cc cc CBR650F CTX700N NC750X, INTEGRA, MN4 CBR1000RR PCX150 Click125i Forza300 GOLDWING 3.Sports motorcycles 125 cc 150 cc 300 cc MSX125 125 cc CBR150R 4.On-off motorcycles CBR300R,CB300F 300 cc 250 cc 150 cc MSX 125 CRF250L CB300F CBR150R CRF250M The total sales in 2014 are 1,357,000 motorcycles 012 We are A.P. Honda A.P. Honda Co., Ltd. Pathway to sustainability Establishing A.P. Honda Co., Ltd 1998 1994 Establishing the first Driving Safety Center in ASEAN region in Samrong, Samutprakan 1986 2000 Starting Honda Eco Mileage Challenge Certified ISO 14001 Starting the social activities with Honda motorcycle dealers 2002 1989 Starting Driving Safety activities in Thailand 1997 1999 Online communication Initiating the market of four-stroke engine motorcycles with dealers to reduce pollution 2003 First time with PGM-FI in motorbikes of which exhaust level was guaranteed at level 6 for fuel saving and environmental friendliness Announcing A.P. Honda business ethics policy striving to be the company that society wants to exist A.P. Honda Co., Ltd. has been the official distributor of Honda motorcycle since 1989 in the collaboration with Honda Motors Japan. As the leader in Thai motorcycle market, we have strong intention to sustainably stay beside Thai society under the vision “striving to be the company that society wants to exist”. By this reason, we have focused on offering high-technology, energy-efficient, and environmentally-friendly products to customers, along with fostering the concern about driving and riding safety. 013 We are A.P. Honda A.P. Honda Co., Ltd. 2010 Indicating the standard requirements for Honda Wing Center dealers Fuel injection was installed in all models of Honda motorcycles Announcing environmental policy Opening Honda Big Wing business 2007 2012 2011 2008 PGM-FI injection was installed in all models of Honda motorcycles Establishing the second Safety Driving Center, which is the biggest in ASEAN, on Ramkhamhaeng Road, Bangkok. 25th anniversary of A.P. Honda 2014 The Thai Chamber of Commerce Best Ethics Standard Test Award Best Promotion of Driving Safety Award, International Association of Traffic and Safety Sciences (IATSS) Japan The sefe driving centers have been expanded nationwide in collaboration with Honda’s dealers. From the national 3rd seller of motorcycle in the past whose product image did not fully respond to customer needs despite its strength, durability, and energy-efficiency, we were able to move upward to the 2nd and finally to the 1st in the rank within only 3 years. Furthermore, we have been able to maintain our position in the motorcycle market for 25 years, or over two decades. The pathway to success was not easy, but we put our greatest efforts into every single detail of our work. This is the result of hard work of A.P. Honda executives and associates. Learning from past lessons is of importance to indicate and adjust the corporate direction and strategic management for sustainable movement. All of our partners who have been walking this way with us, including customers, dealers and staff, can be ensured that they would gain satisfactory outcomes in the future from collaboration with us along this challenging pathway. 014 Honda Global Vision and Philosophy A.P. Honda Co., Ltd. 015 Honda Global Vision and Philosophy A.P. Honda Co., Ltd. 4. Honda’s approach to CSR propelled by the honda Philosophy, we set out course on being a company that society wants to exist by sharing joys with people throughout the world Honda Global Vision and Philosophy Honda is an automotive company established in 1948 by Mr. Soichiro Honda with the Honda Global Brand Slogan as the “Power of Dream”. Honda has been successfully running its business in many countries which are located in 5 different regions around the world, including Japan, North America and Central America, South America, Europe and the Middle East, and Asia-Oceania. Honda Motor Co., Ltd. was established as the headquarters situated in Tokyo, Japan. “Striving to be the company that society wants to exist” is the Honda mission and the ultimate goal that Honda desires to achieve within 2020. For this reason, Honda has announced its global vision for all Honda group around the world to recognize and adapt for use. The global vision is derived from the basis of Honda Philosophy, which is comprised of Fundamental Belief, Company Principle, and Management Policy. 016 Honda Global Vision and Philosophy A.P. Honda Co., Ltd. Honda Philosophy Company Principle Fundamental beliefs The purpose and reason for existence of the Honda group The center of the philosophy of the Honda group Honda Fundamental Beliefs Honda Fundamental Beliefs is considered the heart of Honda Philosophy. It consists of the following elements : Respect for Individual : Honda believes that individual is born with unique and independent. We all have our own ability, thought, reason, creativity, and dream, so we should learn to respect for individual. This belief in this respect strongly promoted by Honda to its worldwide subsidiaries is comprised of three core concepts: Initiative, Equality and Trust. Management policies Guideline for associates in the performance of their daily responsibilities engaged in selling and servicing Honda products develop relationships with a customer based on mutual trust. Through this relationship, Honda associates, dealers and distributors. Experience pride and joy in satisfying the customer and in representing Honda to customer. 3) The Joy of creating, the joy of creating occurs when Honda associates and suppliers involved in the design, development, engineering and manufacturing of Honda products recognize a sense of joy in our customers and dealers. The joy of creating occurs when quality products exceed expectations and we experience pride in a job well done. The Three Joys : Honda believes that people with The above fundamental beliefs lead whom we have relationship both through direct communication to Honda Company Principle, which is or product use should be provided with pleasant experience we have or share. This feeling can be created by 1) The Joy of Buying is achieve through providing products and Maintaining a global viewpoint, we are dedicated to services that exceed the needs and expectation of each supplying products of the highest quality yet of a reasonable customer. 2) The Joy of Selling occurs when those who are price for worldwide customer satisfaction. 017 Honda Global Vision and Philosophy A.P. Honda Co., Ltd. Honda Management Policy Honda Management Policy is the model for our associates to practice on daily basis according to their responsibilities. There are 5 management policies established by Honda, which include : Proceed always with ambition and youthfulness. Respecting sound theory, develop fresh ideas and make the most effective use of time. Enjoy your work and encourage open communications. Strive constantly for a harmonious flow of work. Be ever mindful of the value of research and endeavor. Society Safety Operations Environment Quality Key CSR Themes These management policies enable the staff to implement proposed. Honda emphasizes 4 main missions which relate the company philosophy and principles. The roles of the to environment, safety, quality, and society, whereby executive officers are not only to abide by the policies, but environmental and safety missions are the most important. they also have to create work environment which allows their subordinates to implement them. Giving the associates freedom to find better ways or challenging spirit as well as Honda and environmental fair and sincere treatment are Honda corporate cultures. commitment Honda applies the fundamental beliefs to establish corporate vision which is comprised of the following 3 main aspects : Creation of new values by adding values to products and provide benefits to customers and the society Bringing global vision to local by strengthening the corporate base through an approach to communities while maintaining the company image as international independent organization Commitment to the next generations by creating the balance in nature, environment, and safety Based on Honda philosophy and responses to rapid social changes, initiatives to express social responsibility in order to become sustainable organization have been Honda have taken a big challenge since 1974 when we committed ourselves to prevent global environment from being negative affected by our manufacturing processes and the use of our vehicles. As one of the biggest automotive companies, this could be the proof of our care and responsibility for customers and global society. Honda created the Blue Skies for Our Children logo as Honda global symbol of announcing environmental and safety commitments. 018 Honda Global Vision and Philosophy A.P. Honda Co., Ltd. In 1992, Honda Motors Co., Ltd. announced its environmental commitment which worldwide Honda have followed “as responsible members of a socially conscious company which takes into account environmental preservation in an attempt to help people have good health and protect global environment in every activity initiated by the company. Following the indicated plans is not only for the company’s future success, but it also benefits members in the society and several regions in the world.” To achieve such commitment, Honda has conducted environmental activities both in relation to the production sector and voluntary development of products. Furthermore, we aim to develop environmentallyfriendly automotive technology which is beyond the existing international environmental restrictions and standards and reduce the amount of waste and pollution emitted from our factories. These can prove our dedication to environmental commitment. Honda Environment Statement As a responsible member of society whose task lies in the preservation of the global environment, the company will make every effort to contribute to a human health and the preservation of the global environment in each phase of its corporate activity. Only in this way will be able to count on a successful future not only for our company, but for the entire world. We should pursue our daily business interests under the following principles : We will make efforts to recycle materials and conserve resources and energy at every stage of our products’ life cycle from research, design, production and sales, to services and disposal. We will make every effort to minimize and find appropriate methods to dispose of waste and contaminants that are produced through the use of our products, and in every stage of the life cycle of these products. As both a member of the company and of society, each associate will focus on the importance of making efforts to preserve human health and the global environment, and will do his or her part to ensure that the company as a whole acts responsibility. We will consider the influence that our corporate activities have on the local environment and society, and endeavor to improve the social standing of the company. Established and announced in June 1992 A.P. Honda Co., Ltd. 019 Honda Global Vision and Philosophy Honda Environment and Safety Vision Realizing the joy and freedom of mobility and a sustainable society where people can enjoy life. Honda and drive safety commitment As one of the world biggest manufacturers of automobiles driven by state of the art technology, creation of products which are safe for both drivers and pedestrians is considered the most crucial commitment of Honda. We, therefore, combine prevention and avoidance technology together for the purpose of minimizing street accidents. The avoidance includes turning and stopping technology which provides drivers with supporting safety tools in case of emergency. On the other hand, the prevention technology has been designed to reduce the severity and injuries of drivers and pedestrians as a result of street accidents with the highest level of safety. Beyond the invention of the cutting-edge safety technology, driving discipline is also of the greatest significance. Therefore, the company has started a good number of activities to provide comprehensive knowledge and training to drivers of all professional backgrounds and age ranges. For over 30 years, Honda safe driving program have been developed until it is ranked first among the international leading automobile companies, especially in Asia & Oceania region. Honda Safe Driving Centers and Safe Driving Promotion campaigns have been significantly growing and quickly However, Honda safety commitment is not limited to expanding thanks to our global vision by which social only the company’s direct responsibility for offering products responsibility has been our first priority. 020 Honda Global Vision and Philosophy A.P. Honda Co., Ltd. Honda and quality commitment One of Honda commitments is offering a variety of high quality products processed with modern technology and sold at reasonable prices to gain long-term trust from worldwide customers. To achieve the goal of quality at 120% in all business area, we always abide by international quality standards and requirements. As we have increased the number of local factories and global purchase of raw materials and parts, we expect to create the best quality products which have got through reliable processes of development, arching and production in order to respond to customer needs and trust. All of our products have been developed and improved through Honda Quality Cycle for the best quality in every process. Honda’s Quality Cycle 2. Production preparation We prepare for quality assurance through production processes by building manufacturing control techniques that limit process variability. 1. Design and development We implement quality assurance from the drawing stage by utilizing design and manufacturing expertise to create drawings designed to facilitate manufacturing. Global Honda Quality Standard (G-HQS) 5. Collection of quality-related data, consolidated analysis and quality enhancement measures We collect and analysis quality-related data from customers and markets worldwide and strive to enhance quality in a prompt manner (by means of our market quality enhancement system) 3. Production In addition to using drawings designed to facilitate manufacturing control techniques that limit process variability, we conduct arigorous inspections of part and finished vehicle and take steps to assure no damage occurs during transport. 4. Sales and after sales service Products quality issues after sales are dealt with by dealerships which collect quality-related data from customers in a timely manner. 021 Honda Global Vision and Philosophy A.P. Honda Co., Ltd. company actual business as a domestic motorcycle distributor as well as a provider of services in relevance to Honda initiation of social responsibility products. This is the basis for all A.P. Honda associates the Social attitude has an impact on many related parties, to take as working model from now on. from parts producers, factories hiring a lot of workers, dealers who hand over products to customers, and after-sale service staff whose responsibility is to build the best satisfactions for worldwide customers. As a socially-accepted Each company may establish their organization, Honda has worked closely with local communities and the government to provide our commitment to local own philosophy in accordance with societies in the area where our business has been operated. the corporate goals on the basis of Honda and social commitment To maintain relationships with related parties, Honda has tried its best to meet the expectations of all groups and of all issues in relation with customer satisfaction by improving and developing the quality of products and services. From Global Honda to A.P. Honda A.P. Honda is one of Honda Group of companies in Thailand which has been operating motorcycle business since 1984. At the end of 2014, it has been over 29 years of our success. The company has applied Honda philosophy and vision to local culture. In other words, we have done localization of the global philosophy and vision, yet we have never ignored our fundamental beliefs and Honda Global Management Policy. There are only 2 differences between the philosophy of Honda and that of A.P. Honda in the principles of the company. As A.P. Honda has been operated as a distributor, the provision of products and services has been emphasized so that we can ensure customer satisfaction. Later the company adjusted the content in the two principles to make them in accordance with the business characteristics. The philosophy has also been reconsidered on the 25th anniversary of the company in 2011 in order for us to follow the current situation and the our fundamental beliefs and Honda Management Policy. 022 Strategy toward sustainability A.P. Honda Co., Ltd. 5. Strategy toward sustainability It has been over the past 29 years or almost 3 decades that A.P. Honda Company Limited has been running the business in Thailand. During this time, we have been getting through a number of changes such as customers’ dynamic expectations and desires, political and economic frustrations, as well as the significant development of information technology as online communities or social media, by which the world has been made smaller through speed communication. This factor requires organizations around the globe, including A.P. Honda, to adapt and improve themselves to accommodate all the changes. A.P. Honda (APH) realizes the importance of business modernization in accordance with the changes arising all these past years. We adopt the global Honda philosophy and vision as the basis and principle to practice. Furthermore, localization of our practice to the context of Thailand enables us to live and our business to grow sustainably in this country by applying the 12th mid-term plan (2014-2016) which focus on becoming the most beloved brand to create corporate sustainable through 2 pillars which are delivery of the best quality to customers and responsibility for safety and environments. 023 Strategy toward sustainability A.P. Honda Co., Ltd. Strategy for striving to be the company that society wants to exist We rely on APH 2020 Basic Policy emphasizing the joys of creating, expanding the joy and ensuring the joys for the next generations with an aim to become the world leader in Honda motorcycle business, as well as the 12th Mid-Term Plan indicated for the purpose of the corporate sustainable growth through the development of product quality and service. The highest quality products and the greatest satisfaction will be definitely offered to our valuable customers. Due to the political transition to the new government, together with economic frustration in 2014, which negatively affects the national economic situation, some businesses have been forced to adapt themselves otherwise they may have to lower their production or close down. Moreover, the need to prepare for integration into ASEAN Economic Community (AEC) leads to the tough completion of products and service provision, as well as the influx of labors from the AEC member countries into Thailand requires A.P. Honda to adapt itself. “Quality”, which is one of the main four policies of Honda, is still of the greatest importance to us. We started with inventing and producing various models of products in response to different groups of customers who have different taste and requirements, which include family-type customers who are the biggest group, sports type and big bike-type. Totally we have 8 models available now. In addition, we have developed the after-sale service system to quickly and effectively respond to customer needs and maintain their satisfaction after purchasing our products. Our staff has been strictly trained to be sensitive to customer needs and react sensibly. We have online service system to serve customers both before and after sale. To enhance the quality development and effectiveness of the service, we also conduct survey and the result into consideration to improve the quality of service provided by our nationwide dealers. We strictly comply with international and national laws to ensure that our business has been run in accordance with the rules and regulations. As a result of these continuous practices and development, Honda motorcycle became number one seller of commuter bike and big bike markets in 2014. We have adapted ourselves to be flexible in doing business. To be more precise, we do not rely on the only one income source. Apart from motorcycle distributor, we also established other related business such as production of parts to increase the corporate values and stability with an aim to generate sustainable benefit in the long run. Also, we implement environmental, safety and social policies continuously and seriously. 024 Strategy toward sustainability Creation of sustainable growth through social responsibility As our business has an impact on the increasing number of motorcycles in the road, we realize that social responsibility is a issue of concern to us. We initiated a project to promote safe driving under the title “Safety Thailand” program in 1989, in which motorcycle riders around the country have been trained how to be aware of safety while riding. The safety training sessions were designed to match with people of various age ranges and users of all motorcycle brands. Our safety trainers are stationed nationwide since it is our rule that each dealer must have a trainer to provide basic information to buyers. In addition, we built internationally standardized Safe Driving Centers equipped with complete training tools and equipment and authorized by Department of Land Transport to issue the driving license in equivalence to the government agency doing. Moreover, we take part in supporting the legislation on Safe Driving such as the project encouraging riders to turn on lights and wear helmets and Zero Accident Project for Safe Driving campaign during New Year holidays and Song Kran holidays. A.P. Honda Co., Ltd. During the past 27 years of Safety Thailand Program, we have provided many people with knowledge of safe driving, which results in reduction of road accidents, especially from vocational students in Riding Age group who participated in the training courses. The number of accidents during the years 2011 to 2014 has decreased by 40%. As a result of this success, our “Safety Thailand” Program was awarded the prize for safe driving promotion campaign from International Association of Traffic and Safety Sciences (IATSS) in Japan, which fosters global driving safety. Regarding other aspects of social responsibility, A.P. Honda uses the strength of nationwide network of over 1,200 dealers and cooperation of customers and Thai people to relieve the problem of blood shortage. That is to say, we established blood donation project for people around the country to donate their blood and hand over it to Thai Red Cross Society. With cooperation of our dealers during 2004 to 2014, we and our dealers could hand over total 100 million CC of donated blood to Thai Red Cross Society and its subsidiaries. In addition, we support the development of Thai youth through many projects such as OBEC – A.P. Honda 31 legs competition, Honda Red Champion, One Dealer One School, Marketing Plan Contest as well as Honda Eco Mileage Challenge. Sustainable growth with environmental care in every working process Together with business development, environmental mission is of the greatest concern of Honda. We put an importance on every process from upstream to mainstream, or from production lines to handover of A.P. Honda Co., Ltd. environmentally-friendly products to customers. In collaboration with Honda R&D Southeast Asia Co., Ltd., which is a research and development company, and Thai Honda manufacturing Co., Ltd., which is the manufacturer, we have conducted research, experiments, and started to apply Smart Technology including PGM-FI (Programmed Fuel Injection), which is energy-efficient injection innovation with low exhaust emission, in motorcycle. A.P. Honda is the first company in Asia to apply this innovation. Furthermore, we collaborate with Pollution Control Department (PCD), Ministry of Natural Resources and Environment in supporting environmental policies and Green Dealer Project, which is about effective waste management at dealers’ shops called Honda Wing Center, and Green Delivery Project, which focuses on pollution-free logistics. In 2014, more than 700 dealers have been certified by PCD as Green Dealer. With regard to internal management within the company, all of the company cars are required to use Gasohol E20 to reduce the use of fuel and pollution. Moreover, we strictly comply with the regulation governing wastewater treatment and apply all practices under ISO 26000 standards in 2014, which is beneficial for us in terms of economic, environmental and society aspects. A.P. Honda takes Good Corporate Governance as the principle of business management with stakeholders for the purpose of being accepted by the society according to the vision “Striving to be the company that society wants to exist”. Our internal associates of every professional level is encouraged to improve their efficiency, as well as develop the working processes to hand over joys and creating to the society from micro to macro levels. This is because we are aware of the fact that the business will be able to exist sustainably when customers are satisfied, sellers are happy, and the society obtains benefits. 025 Strategy toward sustainability “Although we have the highest sharing in motorcycle market , but we don’t focus on it. On the other hand, each main division such as Marketing, Service, Spare Part and etc. must looking at our customer first. We spend high budget for research and development in each year. We need to catch up how the customer changes their behavior, We could not work as the old way anymore but need to adapt ourselves all the times instead. This strategy is the key success and become the corporate culture and make us grow up to the future. I always told all dealers that we need to divide the revenue in 3 parts, first is to develop the shop and its manpower, second is to saving and the last is for contribute to our society which will make our business grow up for sustainability. I think that all activities we do, product development or many others. These will reflect of Honda unique character that we respect for individual and the most important is our customer which be the first one we concentrate” Mr.Suchart Arunseangroj Director, A.P.Honda Co.,Ltd. 026 Corporate Governance A.P. Honda Co., Ltd. 6. Corporate Governance Good corporate governance is one of the vital principles for sustainable strength and growth of a company. A Honda has expanded its business bases to several regions of the world as well as localization of administrative power, good corporate governance is respected as our commitment to the society that we have an intention to establish good values to the company in order to gain the public trust and reduce the possible mistakes which may affect our image and social commitment. Honda Motor Japan, therefore, established Good Corporate Governance System on the basis of Honda Philosophy on Respect for Individuals, especially in terms of Equality, Trust and The Three Joys. All Honda subsidiaries around the world are assigned to create and resume the Good Corporate Governance System using Bottom-up Approach, which is expected to result in the system developed from 3 Reality Principles. This was first announced in Pole Position in 2003 for all Honda subsidiaries to implement for Good Corporate Governance in the countries where Honda has been operating. The utmost expectation is to be accepted by the society as specified by the vision “striving to be the company that society wants to exist”. For transparent follow-up and audit, a department responsible for Good Corporate Governance was established. A.P. Honda has applied such Corporate Governance policy as the model of its Good Corporate Governance management in Thai context under the name of Honda Corporate Governance (HCG), of which structure is comprised of A.P. Honda Co., Ltd. 027 Corporate Governance Good Corporate Governance Structure It consists of following 6 groups of committee : 1. Board of Directors which is comprised of 10 directors appointed by the shareholders. The members of the Board of Directors are the directors holding 40% of corporate shares. The committee consists of 9 males and 1 female, 5 of which are of Thai nationality, while another 5 are of Japanese. Their responsibility includes managing, controlling, supervising policy, operation and investment. The President is the Chief of the organization who works under the supervision and resolution of the shareholders. His responsibility is to monitor, investigate, advise, and indicate practical guidelines for effective work according to the work plan approved by the Shareholders’ General Meeting. One Thai management is entrusted from career to be one of the Board members, which accounts for 10% of the committee. The President is also a director by position and the president of the other committees in the company whose duties include monitoring, investigating, advising, and giving practical guidelines to ensure the smooth flow of work according to the proposed plans. The members of the Good Corporate Governance Committee are not given any extra remuneration. 2. Board of Committee was appointed following the course of Honda Motor Co., Ltd. and is comprise of the shareholders who possess over 60% of all shares. The Committee’s responsibility includes consideration of investment plans for several projects. 3. Business Planning Committee is comprised of 4 members whose responsibility includes planning and approval of the company’s new business or assessment of business risk of new strategies. 4. Honda Corporate Governance Committee compiles and acknowledges governance-related complaints and petitions and conducts preliminary investigation before proposing them to Business Ethics Committee or Business Executive Ethics Committee for further consideration. 5. Business Ethics Committee specifies the policy and work plan, as well as considering work-related incentives or disciplinary actions for operational level associates. 6. Business Executive Ethics Committee specifies the policy and work plan, as well as considering work-related incentives or disciplinary actions for management level associates. The Good Corporate Governance Committee was The Shareholder Committee specifies the investment, appointed by selection of the associates in the corporate annual work plan and dividends and earnings for the governance chain, which includes executive managements, overall benefit of the company, as well as monitoring Human Resources Manager and CSR Manager, who take whether the work plan is followed and the financial report. care of corporate governance of the company. 028 Corporate Governance A.P. Honda Co., Ltd. Remunerations for the members of the Board of Directors Each committee has been selected from the permanent executive management of the company who are directors by position. There is no outsider selected to join the committee. Therefore, the committee members are not Board of Directors Organization Chart given any extra payment apart from their actual salary and benefits. Likewise, they do not get extra paid for successful goal achievement or any incentives as a result of organizational operations. Board of Directors President Borad of committee Business Planning committee Network committee Participation of the Committee Corperate Governance committee ISO Standard committee Safety committee Business Ethics committee Confidentiality committee Communicative structure in Strategic Planning A.P. Honda established the communicative structure to The company has indicated the 10-year work plan, acknowledge the opinions and management policy as 3-year plan and annual plan, which must be proposed for follows : approval. Also, the work performance must be reported to the executive directors and Asia-Oceania Honda Management 1. Communication between the managements and the Shareholder Committee monthly and quarterly, respectively. 1) Annual General Meeting of the Shareholders – the performance and income of the previous year is reported and the present year’s work plan is proposed for approval at least once a year. In 2014, the meeting was held twice. The first was held on 27 March 2014 and the second on 2 June 2014. 029 A.P. Honda Co., Ltd. Corporate Governance 2) The Board of Directors is comprised of the shareholders who possess 40% of shares. Therefore, all communication is acknowledged through the Board of Directors meeting held once a month. The meeting can be held on the condition that at least half of the committee must attend. 2. Communication between the managements and the associates. 1) Proposal of the annual and monthly work plans to the managements for approval 2) Two-way communication which is the expression of opinions between the supervisors and subordinates to learn work-related problems and share opinions about possible solutions. 3) Petition or complaint channel, or Opinion Box, is established, which facilitates the employees in communicating any work-related problems to the company by post, paper or Intranet. The problems will be acknowledged and considered by the internal committee comprised of the managements from 3 divisions. 4) Suggestion Box is for receiving associates’ opinions which are beneficial for work and work environment. The company will take these opinions for consideration and further operation. 5) Employees’ Welfare Committee (EWC) is comprised of the associates’s representatives who will make proposals of welfares or adjustment of benefits to the company managements. This Committee is elected and in the position for 2 years. Honda Corporate Governance Aiming to be company that society recognizes and wants to exist Code of Business Conduct Prepare Checklist 1 Governance Business Ethics Self Checking 2 Risk Management Compliance 3 Report 4 Countermeasure 030 Corporate Governance A.P. Honda Co., Ltd. Code of Business Conduct Associates’ Code of Conduct Honda aims to be the organization that the society wants to exist, so A.P. Honda has a strong intention to develop and drive the company to grow sustainably and be commonly accepted. We adhere to transparent business conduct with good business management and compliance with the laws and social norms. Also, we realize that it is vital to be responsible for business, along with the society, to gain the customers’ and social trusts. By taking this policy to extensive practice, A.P. Honda specifies that all executive managements and associates have to work on the basis of responsibility for stakeholders from very level of the society, as well as being responsible for the company’s commitment, by following the Code of Business Conduct. The company realizes the importance of human resources. If the organization has associates who work on the basis of good Code of Conduct, it will be developed to sustainable growth and smooth work flow. For all associates to have mutual knowledge and understanding of business code of Code of Conduct, the company has provided them with the orientation on Code of Business Conduct (for both existing and new associates) along with daily work operation for 3 times, in which 97 associates attended, accounting for 23% of all employees. However, there was no orientation in 2014. A.P. Honda established the Code of Business Conduct in accordance of Honda Motor, comprised of the basic business ethics, which is law compliance, and 10 conducts. Hence, there are 11 Codes of Conducts. 1. Compliance with laws and organizational rules 2. Respect for and compliance with traffic regulations 3. Environmental conservation and careful consumption of natural resources 4. Fostering peaceful society 5. Maintaining the company’s property 6. Ensuring confidential information 7. Maintaining work safety and hygiene 8. Respect for human rights 9. Maintaining good relationship with business partners 10.Maintaining political neutrality and relationship with government agencies 11.Promoting effective communication within the company and with partners Associates’ Manual Brochure “Honda Code of Business Conduct” 031 A.P. Honda Co., Ltd. Corporate Governance To continuously cultivate the good sense of the Code of Conduct, the company arranges to communicate the policy to the associates through several channels, such as brochure “Code of Business Conduct Manual”, in which the conducts for executive managements and all levels of associates are compiled and downloadable from the Intranet. This is for the associates to learn daily work operation. In addition, the poster to internally communicate the Code of Business Conduct is made quarterly to enhance the associates’ knowledge and understanding of the code of conduct for taking into practice. Code of Conduct in relation to business partners or suppliers For business partners, A.P. Honda announced the policy on “Sustainable Code of Conduct for Suppliers” to customers and partners who do business with the company. The policy is a compilation of business, legal, social, environmental, safety, and occupational health principles and related rules and regulations, which are used as the agreement with customers to ensure reliability. All business units are required to sign acknowledgment of the agreement in every purchasing transaction. The following are main topics in the agreement. Legal responsibility - Put an emphasis on the compliance with law, government agencies’ announcements, related rules and regulations, social norms, such as law compliance, law infringement, verification of governmental documents and notification of information to the government agencies, and compliance with organizational rules. Code of Business Conduct responsibility – business ethics, confidentiality maintenance, effectiveness in doing business, other intellectual property, conflicts and respect for other contract parties. Human rights and labor responsibility – providing equal treatment to all associates to be in concordance with international human rights standard, giving an importance to labors in terms of wages and benefits, humanity, participation, and labor development. Internal quarterly PR Poster for Good Corporate Governance Occupational safety responsibility – A.P. Honda prioritizes the importance of work safety. We indicate Honda operational standard that “No Safety No Production” and encourage A.P. Honda partners to realize the importance of work safety. Furthermore, we have created safe and 032 Corporate Governance A.P. Honda Co., Ltd. hygienic work environment which complies with the law and related regulations, which have been continuously improved. The examples of this are work safety and environment, preparation and prevention for emergency or disaster, participation in safety, right and responsibility in the case of injuries or sickness caused by work. Environmental responsibility – A.P. Honda realizes the importance of ecosystem and natural resources consumption. We try our best to take care of and preserve natural environment, as well as follow the environmental laws, rules, regulations, and standards for continuous development and effective delivery of quality products and services to customers. Our management includes careful use of natural resources, waste management, pollution control and prevention, hazardous chemical management, and so on. In addition, we extend our knowledge and encourage our dealers to take part in Green Dealer Project to be able to manage waste effectively and select environmentally-friendly materials or products. Also, we design energy-efficient buildings and facilities to reduce energy-related costs. Sustainable code of conduct for suppliers Code of conduct and drive the organization to grow A.P. Honda has been running motorcycle business for decades. Our goal is to develop transparency, good management, business of principle the hold always We sustainably as well as being globally known and accepted. for business, community, responsibility our consideration into take we Furthermore, respect. norm law compliance and social business. All staff takes part in this lly-friendly environmenta do to attempt our from seen be can which environment, and society, the public, can trust and is worth existing in responsibility to demonstrate that we are the organization that the customers, as well as the Thai society. legal, social, environmental, “Our Code of Conduct” has been created from the compilation and consideration of the business, law. The result of this is and regulations relevant the safety and occupational health content related to our business, along with are the details of this Following partners. and Honda A.P. between agreement expected to be an appropriate code of conduct and code of conduct. as the public, operating business 1. Legal role: As we are part of the society and known by private and public sectors as well issued by government agencies, notices law, the with comply strictly always We in compliance with the law is of our greatest concern. rules. internal our and norms, social related organizational regulations, content of related laws. They are 1.1. Law compliance: A.P. Honda’s partners are requested to acknowledge the essence and regulations. Furthermore, they and law changing the of notified being as well as aware of the interpretation of specific law, ignore or neglect to practice never and operation business their to law the in specified content the apply can appropriately them. law or the verification of contracts, 1.2.Breach of law: If there are any actions which may be at the risk of the breach of and the customers in order to lawyer the consult or present report, should partner Honda’s A.P. agreements or regulations, prevent any possible damage. agencies: A.P. Honda’s 1.3.Verification of government documents, procedures and provision of information to government must properly provide they Also, operations. any for approval legal for application of importance the partners must realize information and report to government agencies as specified by law. acknowledge the content of their 1.4.Compliance with organizational rules and regulations: A.P. Honda’s partners should the rules and take them into issued which departments the with confirm and consult regulations, and organizational rules should report to or consult they appropriate practice. Provided there is damage or any actions seem at the risk of damage, with the consultant or the customers. Page 1/6 Partners are required to respect and realize the importance of the company’s Business Code of Conduct 033 A.P. Honda Co., Ltd. The company provided the regulations for office purchasing to set up appropriate standards and guidelines for effective operation. This includes comparison of prices of producers or suppliers in every purchasing transaction, which must be done between 3 producers or suppliers. Corporate Governance The qualifications of the contractors must be considered on the basis of price comparison under the fair and equal standards of purchasing. The company made the office purchasing regulations to be used as appropriate standards and guidelines to ensure effective operation. This includes comparison of prices of producers or suppliers in every purchasing transaction, which must be done between 3 producers or suppliers. These regulations are available on the Intranet for all associates to download and use as reference for accurate and correct operation. In 2014, 100% of partners accepted the Sustainable Code of Conduct for Suppliers. With regards to purchasing transactions, in 2014, no reports on child labor exploitation or work-related inequality were received. The contractors must enter into the agreement on fair employment, wages and welfares as specified by law. Moreover, the company made the business partner evaluation form on corruption, as well as the terms and conditions of corruption. Anti-Corruption Policy A.P. Honda established the policy on anti-corruption in the company’s code of conduct to prevent conflict or interest within the organization both arising from the executive and operational levels. 1. Purchasing The company set up clear policy and regulations to control over purchasing to ensure transparent and fair transactions. For purchasing products or hiring services from external contractors, the transactions must be approved by several levels of executive managements. Comparison of prices must be done before determining the purchase, of which results are made and attached with expense reports. For some purchasing transactions which require high budget limit, the purchasing agreement will be made in which liability guarantee is stated to ensure the transparency and reliability of payment installments, as well as responsible VAT and withholding tax conditions. In the case of mega project investment, the Board of Directors and Shareholder Committee must approve the proposal and the reports in relation with the project must be submitted regularly. 2. Taking and giving gifts Taking gifts : The gifts acceptable for the associates must not be in the form of money and the value must not exceed that indicated in the company’s regulations. The associates must not receive the gifts of which value is too high or receive extraordinary discounts which are over the rate those of companies usually offer to other customers. The associates must not request or any gifts or benefits for personal or other’s benefits from business partners. In the case of New Year’s presents, the company announced that the presents all business units received from partners, suppliers or producers must be gathered for Administrative Division to allocate to all associates. Giving gifts: The company indicated the appropriate rates of gift value to be given to the organizations supporting and doing business with the company on the basis of Code of Conduct and social norms. Giving gift must be approved by supervisors in writing. 034 Corporate Governance A.P. Honda Co., Ltd. Penalties In the event that corruption or theft is found, the case will be investigated by the Good Corporate Governance Committee. If the case is found to be true, the Committee will consider the penalty starting from light to heavy penalties, which are compensation for damages, warning, parole, evaluation grade deduction, reduction of salary and demotion, severance, and dismissal, respectively. All of these will be taken into the Penalty Committee’s consideration before execution. A.P. Honda has been internally audited by Asian Honda Motor Co., Ltd., which is the Asia-Oceania Honda office, on annual basis, at least once a year. The purpose is to review the effectiveness of the internal control system and to ensure that the business has been operated according to the company’s policy, in concordance with the objectives specified by the executive managements and the shareholders to reduce the business risk. In 2014, A.P. Honda was awarded the Thai Chamber of Commerce Business Ethics Standard Test Award 2014 (TCC Best Awards 2014) from the Thai Chamber of Commerce on the account of operating business on the basis of ethical practice with partners and social responsibility. Procedure of the Supreme Committee of Sustain The anti-corruption operation is reviewed once every ability Management and processes of assessment 3 months. In the 12th mid-term plan (2014 – 2016), in 2014 of sustainability-related performance for instance, the operation was communicated to the According to the 12th mid-term plan for 2014 – 2016, associates in the form of several media as posters to ensure we strive for being the most beloved brand as well as a sustainable organization through 2 pillars, which are delivery their correct understanding. of the best quality to customers and responsibility for In 2014, no associates were fined for law infringement safety and environment. Our principal plan will be approved by the executive management and proposed to the or major offence. shareholders for approval at the Shareholders’ Meeting. The mentioned Good Corporate Governance of After the principal plan is approved, Business Planning A.P. Honda is expected to give benefits to all units. For Division will assign responsibilities to each division and associates, they could be able to work smoothly without department for use as the guideline for their operations conflicts. If they find something unfair, they can file the according to the annual plan in order to achieve the complaints to available channel, which is Business Ethics indicated goals. At the assessment process, the executive Proposal Line: BEPL, for consideration. Regarding the management and directors will take part in following up and company, we will be able to gain trust and acceptance from inspecting the operations closely. All divisions and related parties, including customers, employees. and the departments are required to prepare Hoshin report or monthly report to be directly presented to the executive society, which leads to overall social development. A.P. Honda Co., Ltd. management. The format of presentation is called PDCA (Plan- Do - Check - Action), for which there are clear self-assessment indications implemented for examining the progress and effectiveness of the operations. The executive management and directors will provide suggestions for the operators to improve their work in case there are problems or obstacles arising during the process. There results of improvement will be reported in the following monthly meeting. Moreover, all associates will be notified of the company’s overall performance outcomes in the quarterly Break Down Meeting, and the performance outcomes of the annual principal plan will be presented in the last quarterly meeting. As we are a distributor and service provider, the executive management emphasizes the operation under Global Honda policy which covers economic, social and environmental aspects of operations. The first pillar is delivery of the highest quality to customers through the development of product quality and provision of service to ensure the best customer satisfaction. The second pillar focuses on the responsibility for safety and environment. The Committee specifies that all units must operate in the way to reduce environmental impact through concrete environmental management measures, especially those related to the main products and supporting equipment. Also, the promotion campaign for safe riding of motorcycle riders regardless of what brands they use. The restricted operation of this plan is expected to contribute to sustainable development of the company and the society in the future. 035 Corporate Governance Remuneration for the members of the Board of Directors Each committee has been selected from the permanent associates of the company who are directors by position. There is no outsider selected to join the committee. Therefore, they get monthly remuneration according to the standard specified by the shareholders in the Shareholders’ Meeting. They do not get extra paid for being the Committee’s members. Regarding the extra payment or annual bonus, the members of the Board of Directors will get them on the basis of the company’s income in each fiscal year, which is paid at the same standard as it is to the associates and the shareholders. Apart from this, the members of the Board of Directors and the managements of all levels are not paid for successful achievement of social and environmental performances or any incentives as a result of organizational operations. This stems from Honda Motor’s policy emphasizing equality for global Honda. For this reason, the company has not provided any extra payment to the Committee members according to their performances to respect the global policy of Honda Motor. 036 Corporate Governance A.P. Honda Co., Ltd. Organizational risk management Opportunities affecting sustainable A.P. Honda’ risk management policies are as follows; growth of the business Business Risk Management for New Network and New 1. In running new business, the proposal must be made Business and assessed by the Business Risk Management Committee. The legal, financial and CG risks must be A.P. Honda established the Business Risk Committee for evaluated. considering new network and new business. The Committee 2. Self – verification of Good Governance is comprised of the President of the Board of Directors, who 3. Internal Audit acts as the President of the Committee, Sales Director and 4. Risk Alert Report to the Asia-Oceania regional office General Manager of the new business planning, who acts 5. Network Meeting to consider the opening of new as director and secretary. The Committee’s responsibility distribution centers includes considering, advising, evaluating, and providing 6. ISO 14001 for environmental management opinions about the scope of the extended or new business. There is no exact agenda of meeting. It depends on the business system and the change of business environment. The Committee may appoint the working team to collect and analyze data for evaluating the feasibility of the new business. The Committee will provide initial consideration and propose it to the Board of Directors for further consideration and approval. Business risk management for new network & new business New Business : Business has not ever been run into A.P.Honda Co.,Ltd. New operations/ project under Business Planning Department Rule & responsibility : Consent vision & for mid-term & long-term Measure possible and potential Consider organs of operations Feasobility study & make intial recommendation Risk assessment & growth Comment & revise for proposing of working group Consider affects to current business environments Initial decision making from working group Set up working for assingment as preferred Verify Concerned Department Measure & verify based on requirement Minute meeting to written direction of decision and reasons should be approved New business Risk assessment Proposal Approval operation : President Business Planning Committee Secretariat-BP Propose Results Company committee Working group Risk assessment & Consideration Corporate approval Approval & Operations BOD BOC A.P. Honda Co., Ltd. The company has the procedure of corruption-related risk analysis by self-verification with an aim to reduce the possible risk and create necessary standard for the business in question. The procedure is comprised of 5 practices: compliance, risk management, information management, operation effective, and audit operation. In doing the analysis, the supervisors are given check lists to evaluate and make reports on the operations which are not in concordance with the principles. Last year, all 25 business units were evaluated. Furthermore, external audit has been done by Honda Motor Co., Ltd. and other external auditor at least three times a year. The operations of all business units are also reviewed whether they are in concordance with the Good Corporate Governance principles and cover corporate risk control. The review is conducted once a year. Internal information management and protection Upon globalization, A.P. Honda realizes the importance of communication with outsiders and the society. The company has developed the most accurate and safest system to ensure confidentiality of secret information, which is deemed as valuable property of the company derived from longtime experience in business. In the age of New Media, social network is easily accessible and difficult to control. The leakage of confidential information of the company and the customers not only jeopardizes the company image in terms of social criticism of negative effects of the leakage, it also causes the customers and the society to lose faith in the company, as well as bringing about the severe threats to the company business. In 2014, the company announced the policy on information safety and related standards to maintain the company’s confidential information, the use of telecommunication equipment as personal computers, electronic devices in the office, network connection, information accuracy, and maintenance of the information status for the associates to share responsibility for protecting confidential information and technology of the 037 Corporate Governance company. This policy is announced in the company’s Intranet and available for the associates to study. In addition, A.P. Honda followed the policy of Honda Motor in establishing the Confidentiality Committee of which members are selected from all business units in the company. The Committee has been appointed for the purpose to prevent the risk of information leakage to the outsiders, which may cause damage to the company’s business. The risk caused by climate change As the distributor of motorcycle which emits the carbon dioxide to the environment and global atmosphere, the company realized the growing problem of global warming which leads to natural disaster. In the past 10 years, Thai people have faced severe natural disaster, such as flood, landslide or tsunami. This has affected people’s livings as well as business of all sections. Flood and drought, especially, affect the life and occupation of farmers who are the company’s customers. The big floods in the past years, for example, caused the production and distribution of the company and the nationwide dealers to decline, and such disaster may reoccur at any time in the future. The climate change, such as climate variability or meteorological drought, also indirectly affects the business as most of the company’s customers are in the agricultural section. Facing this crisis, they reduce or stop purchasing, which affect the overall sales of the company. In addition, climate change causes the reduction of natural resources and higher cost of materials for production. 038 Corporate Governance A.P. Honda, as the motorcycle distributor, realizes the responsibility for this problem. Therefore, we established clear strategies to deal with climate change, as well as product cycle, starting from reducing environmental effects by collaborating with Honda R&D Southeast Asia Co., Ltd. and Thai Honda Manufacturing Co., Ltd., who are R&D companies to research, invent and develop the environmentally-friendly motorcycles. An example of this is the initiation of using two-stroke engine in place of four-stroke engine and use of PGM-FI injection in Honda product since 2003, and idling stop system which automatically stops the motorcycle if it stops longer than 3 seconds. A.P. Honda Co., Ltd. Political practice A.P. Honda Co., Ltd. announces itself to be politically neutral. We do not have any policy or actions to support politicians or political parties for personal benefits. However, the company respects the associate’ beliefs. They have the rights and freedom to take part in or vote for their favorite parties on the condition that they must not do anything against the law and must not use their positions, duties, work hours, or company’s equipment in the way to personally support to politicians or political parties. Furthermore, they must not do anything which may mislead the public in that their actions are done in the name of the company. Law compliance and collaboration with government agencies All associates must comply strictly with the existing law as well as collaborating with government agencies both as customers and as legal officers. All associates must study rules, regulations and obligations on each subject and practice them correctly. The associates’ code of conduct and the company’s ethics must be taken into consideration. The provision of welcoming reception or gift giving must be done within the scope of law and under the company’s regulations. Confidential information refers to the company’s information which is of the highest value for business and cannot be disclosed to outsiders, such as information about management and operation, technical information, sales and marketing information, and any other information possessed and restricted by Honda as the corporate confidentiality. 039 Stakeholder Engagement A.P. Honda Co., Ltd. 7. Stakeholder Engagement One of the global principles of Honda is Respect for the Individual as Honda believes that each person has his own dream and is different. We should respect the individual and give them freedom to create new things equally with trust. A.P. Honda takes Honda philosophy on individual respect as the basis for the construction of value and interaction with all groups of stakeholders, as well as establishing the commitment to fulfill their needs and expectations. Honda motorcycle dealers across Thailand. attented the Annual Bloc Meeting Stakeholder engagement is important for sustainable business operation. The company communicates with the stakeholders through responsible departments. The satisfaction of the sample group of the stakeholders has been surveyed on the basis of equality. Raw material Producers A.P. Honda Stakeholders Associates Subcontractor Shareholders Dealers APH Communities Government agencies Trade competitors Factory Subsidiaries Non-profit organization Product user 040 Stakeholder Engagement A.P. Honda Co., Ltd. Stakeholders of A.P. Honda Stakeholders of A.P. Honda Shareholders Honda Motor Co., Ltd. Japan Shareholders Associates Communication channels for participation Proposal for approval of work plans Expectation • Good governance and management • Risk management Shareholders’ General •Good governance and Meeting at least once a year management •Risk management •Good revenue, growth and stability •Quarterly Break Down •Salary, wage and welfares meeting which are up to the •Suggestion box available standard and appropriate throughout the year for economic situation •Opinion box available •Career advancement throughout the year •Promotion, competency •Annual president round development and work table environment beneficial for •Monthly meeting on safe and healthy work performance report to the •Activities to foster top management associates relationship •Performance self-evaluation and spirit and management evaluation (two-way) •Semiannual work-related discussion between associates and direct supervisors (two-way evaluation) •Annual Holiday tour, Family day, New year party, Birthday party to strengthen the associates relationship •Employees’ Welfares Committee being in office for 2 years •Recreation Committee being in office for 2 years •Internet and notification boards Operation for expectation fulfillment •Monthly Financial Report •Quarterly environmental report •Reports on situations and performance results to the shareholders •Management of salary and benefits at the standard level of the market •Management of solutions of the problems received from Suggestion and Opinion Boxes. In 2014, there were 283 suggestions. •Communication of the company news and updates through several channels, such as Intranet and PR boards 041 Stakeholder Engagement A.P. Honda Co., Ltd. Stakeholders of A.P. Honda Communication channels for participation Expectation Customers (Level 1: Dealers) •Annual dealer meeting •Annual two-way dealer meeting •Semiannual Block meeting •DOSS (Dealer Online Service System) •Semiannual dealer visit •Annual study trip abroad •Business plan and risk management •Being market leader •Quality of products and after-sale services •On-time product delivery •Funding of tools and equipment and selling policy for sustainable strength of dealers •Good care by the company’s sales coordinators Customers (Level 2: Product users) •Brand survey •Quality and safe products •DSI (dealer satisfaction with reliable and on-time index) survey after-sale service •Annual customer •Relationship building satisfaction survey activities •Company website and Social Media •Call center •Annual Motor Show activities •Quarterly motorcycle user club activities •Motor Sports activities Operation for expectation fulfillment •Long-term, mid-term and short-term business plans •Continuous and fast communication of the information about products, selling policy and promotional campaigns to the company’s regional salespersons •Getting feedback from dealers •Annual awards given to outstanding dealers •Research and development of products with the highest standard and safety •Call Center for answering questions and getting feedback from customers, as well as giving suggestions on initial solutions to technical problems of products and product distribution •Policy on effective after-sale service •Continuous activities to build relationships and honor customers, such as Honda club activities •Safety riding training for motorcycle riders of all brands and age ranges by standard instructors at Safe Riding Centers in many regions. 042 Stakeholder Engagement Stakeholders of A.P. Honda A.P. Honda Co., Ltd. Communication channels for participation Expectation Partners •Producers •Suppliers Guidelines for A.P. Honda’s Partners’ Sustainable Practice Fair and transparent purchasing of products and services Communities / society •Annual Environment Impact Survey asking nearby companies and communities, such as Toyota Motor (Thailand) Co., Ltd., KV Electric Co., Ltd. and Samrong-Tai community, about any possible impacts they get from the company •Community relationship activities: Children’s Day activities held at schools, such as Wat Trai Samakkhee School, Wat Bangduan School, and nearby communities, such as Samrong-Tai Municipality and Muang Puchao Samingprai Municipality •Environmental activities, such as arranging waste banks and solar cell panels for nearby schools •Survey on satisfaction of social activities, focus groups, motorcycle user and non-user survey in all 4 regions conducted by third party agency Operation for expectation fulfillment •Written production and service contract between the company and the partners •Written notification of Guidelines for A.P. Honda’s Partners’ Sustainable Practice to all partners •No effect on environmental, •Operate business subject waste and pollution from to the law company •Relations with •Corporation in community communities via social event such as Children activity such as Children day day, promote environmental and energy to school and communities and etc 043 Stakeholder Engagement A.P. Honda Co., Ltd. Stakeholders of A.P. Honda Press •Mainstream media •Online media Government agencies •Ministries •Departments •Royal Thai Police •District offices •Educational institutes Trade competitors Other motorcycle distributors Communication channels for participation •Press conference on product launch, turnover and annual work plan •Executive talk •Company website www.aphonda.co.th •Motor Show •Press Tour for society, such as Honda Red Champion Project •Regular press visits on special occasions •Participation in the meetings held by associations or organizations, such as the Federation of Thai Industries, Thailand Automotive Institute and Pollution Control Department, as a member •Collaborating with the government agencies, such as Land Transportation Department, Ministry of Education, Office of the Basic Education Commission of Thailand, Department of Vocational Education, educational institutes in social activities as Safety Thailand, OBEC-A.P. Honda 31-legs Competition and Honda Eco Mileage Challenge •On-time provision of accurate information to related agencies •Compliance with the laws, such as payment of sign tax News Expectation Organizational facts and movement disclosure Operation for expectation fulfillment Continuous provision of organizational and product information Executive talk with Medias •Compliance with the laws, •Compliance with the laws rules and regulations or practice better than relevant to the business the requirements of the •Collaboration with the laws government agencies in •Continuous ISO 14001 providing information and standard practice supporting projects Free and fair trade competition Business operation under free market philosophy 044 A.P. Honda Co., Ltd. Economic Performance 8. Economic Performance Revenues The company made 65,035 Million Baht in 2014, most of which was from motorcycle business. Expenses The company’s expenses are 64,493 Million Bath, most of which was operation cost, paid to government and local authorities, wages and welfare and paid for social and community development. Economic Value Retained is 542 Million Bath A.P. Honda Co., Ltd. 045 Environmental Performance 9. Environmental Performance 046 Environmental Performance A.P. Honda Co., Ltd. Environmental management Based on the belief that environment is the valuable treasure which should be preserved and inherited to the next generations, A.P. Honda, therefore, put a great emphasis on environmental conservation under the ISO 14001 standard operation during the past 14 years, since 2000 until present. Due to greenhouse gas emission from global production, climate change is not a mere problem to look over. We are certain that we have done an environmentally-friendly business, which is very challenging for us during the time of such global environmental crisis. A.P. Honda determines to reduce the impacts of greenhouse gases; hence the environmental plan has been announced as the guideline for related parties, both internal and external, to practice. The plan starts with reducing the CO emission from each operational process, including using environmental-friendly products or Green Products, using low-carbon fuels, and so on. This guideline has been communicated to our partners in order to ask them to practice the same way, such as the use of Green Products, improvement of work process to reduce wastes. This is deemed an environmental care network which helps us in environmental conservation. As a result of the above operation, related information has been collected and sent to Asian Honda Motor Co., Ltd., which is the head office in Asia-Oceania region, to make a summary on the environmental work plan and strategies of Honda Group of Companies in Thailand, as well as reporting to Honda Motor Co., Ltd. in Japan. The information about greenhouse gases report has been compiled from direct and indirect activities. Each process and its impact were monitored and reviewed carefully and certified by Bureau Veritas Certification (Thailand) Co., Ltd., which is the third party company to ensure that the reported information has been analyzed according to the IEA (International Energy Agency) standard, which guarantees reliability of the outcomes. 047 Environmental Performance A.P. Honda Co., Ltd. With reference to the information collected in 2014, it was found that a total amount of 1,425.47 tons - CO has been emitted from the company. Then, we have taken an immediate action to rectify this problem with an aim to reduce the environmental impacts as follows; Gasohol E20 consumption E20 Fuel Energy Management A.P.Honda initiated the energy management project in which the improvement and installation of effective and environmentally-friendly energy-efficient equipment has been done. In addition, the campaign for associates’ adjustment of behaviors in relation to energy consumption has been conducted. Fuel The adjustment of consumption of fossil fuel or the consumption of gasohol E20 is one of the measures operated at the company. In 2014, 97,860 liters of gasohol E20 has been consumed, which accounts for 33% of the total amount of consumed fuel. The proportion of greenhouse gases emission reduction was equivalent to 0.00841 tons - CO2 with reference to the measurement specified in the report presented to Honda Motor Co., Ltd. and certified by Bureau Veritas Certification (Thailand) Co., Ltd. This amount increases from that of 2013 which has been consumed only 2,784 liters, or 0.9% of the total amount of consumed fuel in the same year. The company still determines to reduce more emitted greenhouse gases by preparing for the use of gasohol E85. In the process of seeking 117 cars for the company’s use, all engines are specified to be able to accommodate the use of gasohol E85, which is expected to be ready for use in 2016 and expanded to cover all operations of the company in the near future. 33% 2013 0.9% 2014 048 Environmental Performance A.P. Honda Co., Ltd. At the end of 2014, the company purchased 30 VRV (Variable Refrigerant Volume) air-conditioners to replace the Split Type ones which have been in use for over 12 years. This change is to create the most effective use of energy-efficient technology. Moreover, the VRV air-conditioners do not use refrigerant R22, which is claimed as non-environmentally-friendly. The replacement of these air-conditioners reflects the goal of the company to reduce CFC emission. More precisely, there is no CFC emitted from the company by the use of VRV air-conditioners. From the outcome of the performance in 2013, 1,568 megawatt of electricity has been used. In 2014, it was 1,522 megawatt, which is 2.9% reduction. This reduction is a good start for the company to continue reducing the consumption and promoting effective use of energy in the future. Electricity The company indicated that responsible business units establish the policy on electricity saving within the company by reducing the electricity use and using energy-efficient equipment. In 2014, the company was able to reduce the amount of emitted greenhouse gases by reducing electricity use at 1.94 tons-CO , which was the result of the following activities to promote the conservation and effective use of electricity. In 2013, the company fostered electricity saving by changing the existing 336 light bulbs from fluorescent bulbs Model T8 in the office building A to LED bulbs, which was the start of the study and data collection of the product use for future planning. In addition, the company has been promoting the use of renewable energy by giving solar cells to two schools in the remote areas of the central region which were in need of energy, and we are planning to do the same for many other schools. This is not only the promotion of effective use of energy in the organization but also the promotion of energy saving in general. Electricity Consumption lower 1,568 watt 2013 2.9% 1,522 watt 2014 049 Environmental Performance A.P. Honda Co., Ltd. Water Management lower 15,083 cupbic meters 8.3% 13,819 cupbic meters on water use and wastewater treatment. We use AS, which is chemical-based system, and microorganisms to treat wastewater to the specified standard before release it to public water sources. Furthermore, the standard value of wastewater is controlled by certified private agencies and related government agencies, such as the Department of Industrial Works and local government agencies. This can ensure Honda’s determination to be responsible for environmental effects caused by the factory’s operations in order for the factory and the community to live together without conflicts. With regard to the associates’ use of water for cleaning the canteens and toilet, water-efficient equipment, such as automatic water valves, water-saving water taps, at the points Water is one of the most important natural resources where water needs to be use in the office building for more for humans as good quality water is needed for use in almost effective use of water. In addition, stored rain water is used every activity. Therefore, the effective use of clean water for watering plants around the Safe Riding Center. must be taken into consideration. From all these activities, in 2014, the company consumed Many activities operated by A.P. Honda require the use 13,819 cubic meters, which is 1,264 cubic meters, or 8.3%, of clean water, including office activities (toilets, canteens, lower than the amount consumed in the previous year. The etc.) and the activities at the secondhand motorcycle reuse method has also been implemented to help save clean factory. All water we use is supplied by the Metropolitan water consumption. 2013 2014 Waterworks Authority. At the factory, the company focuses 050 Environmental Performance A.P. Honda Co., Ltd. Wastewater treatment Within the company’s areas, wastewater or water use by the office building or by the secondhand modification factory is treated by AS system (chemical-microorganism) up to the standard specified by law. Then treated water flows to the pond at the water discharge control building (flood prevention) of the company in which two 30 HP water pumps are installed for controlling the amount of water in the pond. Also, they control the discharge of treated water. The treated water treated discharge points are comprised of Office building area distributed by water pump at 1 point Safe Riding Center area to ensure that 100% of imported chemicals are free from harmful components. This includes the examination of product labels and documents as well as studying the production process (paints and chemicals) to ensure that all products contain no components which negatively affect the environment. Also, we have the system to evaluate the contractors or producers on the basis of ISO 14001. Therefore, it can be concluded that in 2014, zero of chlorofluorocarbon (CFC) or nitrogen dioxide and sulfur dioxide (NO , SO ) was emitted. Prevention of chemical leakage distributed by water pumps at 3 points A.P. Honda realizes the importance of safety and encourages the associates of all levels to acknowledge it by heart. The company has safety plans and has the associates practice annually to prevent the leakage of chemicals into the environment in and outside the company. During the 933.4 past years of operation, there has been no chemical leakage cubic meters case. The company has followed up safety procedure In 2014, 933.4 cubic meters of treated water was and restricted the specific areas for chemical storage. distributed to public canals (no agencies request for the use Furthermore, the transfer of chemical waste has been done of this water). according to the regulations. The partners who manage hazardous chemical waste selected by the company must be certified and approved by the Department of Industrial Works that they operate according to the environmental standard and safety. 2014 Treated water Chemical and Waste Management Use of chemicals harmful to the Waste management Every process of the company’s waste management is conducted under the related laws. Furthermore, we have The company is sure of each process of importing been trying to seek the way to use the waste for the chemical materials and products from the partners on the environmental benefits. condition that only non-CFC chemical will be accepted and bought with the green purchasing process. All information In 2013, we used the old tires got from the modification about the components of those chemicals will be screened of the secondhand motocycle to build the barriers for atmosphere 051 Environmental Performance A.P. Honda Co., Ltd. 2013 15,710 tires were used on the sq.m. area. coastal prevention at Koh Nok, Tha Kham Sub-district, Chacherngsao Province. 15,710 tires were used on the 785.5 sq.m. area. In 2014, we also initiated the project in which old tires were used as a fuel in cement kilns, which is a good zero land fill waste management. Hazardous waste The hazardous waste in the secondhand motorcycle factory is reused as mixed fuel or alternative fuel. In 2014, the hazardous waste was categorized into 660 kilograms of paint sludge, 680 kilograms of oil-stained cloths, 1,310 kilograms of used lubricating oil, and 1,100 kilograms of thinners. Reduction of new resources by recycling Other types of waste from the business can be separated into pieces or melted for picking useful components to reuse. This is another method continuously operated at the company. In 2014, the following has been done. • Used batteries comprised of plastic, lead and copper, which can be melted for reuse. The amount of the recycled was 720 kilograms. • 17,870 kilograms of Two-sided used paper was sent for recycling. • 8,310 kilograms of waste steel pieces was sent for recycling. • 3,930 kilograms of broken plastic was sent for recycling. • Aluminum pieces: The company has collaborated with the Department of Pollution Control in the providing aluminum pieces to the prostheses project under the royal patronage for producing the prosthesis for people who are in need of it. Since 2013, the company delivered the total amount of 1,300 kilograms of aluminum pieces to the project. In addition, the company has expanded the project to promote the awareness of environmental conservation by donating UHT milk cartons for use in green roof production. The project started with asking for collaboration from the employees and expanded to nearby schools. During 2013 – 2014, four schools have been participating in the network and provided 185 kilograms of milk cartons for production of 10 roofs, which helps reduce 1,665 kilograms of Co2. 052 Social Performance A.P. Honda Co., Ltd. Information about wastes or discarded materials and management methods as of 2014 053 A.P. Honda Co., Ltd. No Social Performance Name and description Amount (unit : ton) Management method Responsible person Wastes or discarded material (hazardous) 1 Paint Sludge (from paint mixing and spraying) 0.66 Used to produce mixed fuel Better World Green PCL 2 Paint and chemical containers, ink cartridges 0.23 Sanitary landfill after stabilization or hardening Better World Green PCL 3 0.68 Used to produce mixed fuel Better World Green PCL 4 Oil or chemical contaminated materials Used batteries 0.04 Sanitary landfill after stabilization or hardening Better World Green PCL 5 Used light bulbs 0.05 Better World Green PCL 6 Oil contaminated water 0 Sanitary landfill after stabilization or hardening Used to produce mixed fuel Better World Green PCL 7 Used engine oil 0 Used as alternative fuel Better World Green PCL 8 Used thinner 0 Used as alternative fuel Better World Green PCL 9 Used engine oil 1.31 Other recycling methods Better World Green PCL 10 Used thinner 1.10 Other recycling methods RAT Co., Ltd. 11 Used motorbike batteries 0.72 Other recycling methods RAT Co., Ltd. 12 Waste water sludge 0.12 Sanitary landfill after stabilization or hardening RAT Co., Ltd. Ruam S. Recycle 2000 Limited Partnership Ruam S. Recycle 2000 Limited Partnership Ruam S. Recycle 2000 Limited Partnership Siam Kraft Industry Co.,Ltd. Wastes or discarded material (non-hazardous) 13 General steel pieces 8.31 Waste segregation for sale 14 Aluminum pieces 0.15 Waste segregation for sale 15 Plastic pieces 3.93 Waste segregation for sale 16 Paper pieces 17.87 Other recycling methods 17 Used motorbike tires 3.50 Sanitary landfill for non-haz- Better World Green PCL ardous waste only 054 Social Performance A.P. Honda Co., Ltd. Operation and service provision considered limiting the possibility of noise pollution which may disturb, directly or indirectly, nearby communities. Many trees have been planted around the riding grounds located Every process of our operation and service provision is near the communities to be the natural soundproof walls done according to the environmental policy which controls and shades, as well as beautiful natural views for passers-by. both internal and external processes to be under the The company focuses on creating reliability as the company’s conditions of environmental conservation. organization which listen to and accept the complaints. Each Prevention of the impacts resulted year, the company makes environmental complaint form (according to standard of environmental management from the operations to the ISO 14001) for the nearby communities, as well as environment communicating the company’s environmental policy. During Each process of motorcycle modification in all 2013 – 2014 There are no complaint from community and operational areas is done according to the safety and society. environmental standard. The impacts from the operations, such as fume, dust and noise, are monitored and controlled. Each year, the company hires a certified third party organization to inspect such conditions to ensure that the processes do not affect nearby communities and society. During 2013 – 2014, the results of measurement of all items were under the standard specified by law. Safe Riding Training is one of the activities to deliver safety to motorcycle users. The activities produce engine noise (yet all motorcycle users in the training has been certified standard from the factory); therefore, the company Transportation and logistics Transportation and logistics is an essential factor to drive the business, yet it unavoidably causes pollution. Effective and systematic transportation and logistics management should, therefore, be taken into consideration. Associates’ commute To respond to the policy on reducing pollution as a result of engine exhaust, transporting the associations to and from the work stations is done with 145 company’s cars of which engine is regularly checked by Honda Service Center to ensure the standard level of exhaust emission. The company provides the vans for the associate after normal work hours to facilitate their commute which is one of the company’s welfares. In addition, it can help limit the amount of exhaust emission under the notion of “the same way, the same car”. A.P. Honda Co., Ltd. 055 Social Performance Product transportation Certification by third-party Company For product distribution to nationwide dealers, the company has changed fuel system of the trucks from diesel to NGV fuel, which results in more effective combustion with lower amount of exhaust. At present, we have 250 trucks in operation. The fuel systems of 110 trucks have been adjusted during 2011 – 2014. This project will be done continuously until 2016 in which we expect to have 130 trucks adjusted (except those transporting products to the southern region since there are not enough NGV stations to supply fuel). The environmental impact information must be transparently and reliably disclosed to all groups of stakeholders. Honda Motor Co., Ltd. Japan has compiled the information about environmental impact from 469 Honda subsidiaries around the world, which has been made a report of Honda’s sustainability and inspected and certified by Bureau Veritas Co., Ltd. Japan before being disclosed to stakeholders and the public. The company still continues to promote the campaigns on energy and environmental conservation according to the Green Product Purchasing environmental policy of Global Honda, as well as the environmental policy of A.P. Honda. We plan to add more With regard to office supplies purchasing, the company environmentally-friendly items in the purchasing list, which emphasizes the purchase of environmentally-friendly is expected to be a way to encourage producers to develop products. Also, we have tried to encourage the suppliers to more green products in the future. develop their products or service on the basis of not only market demand but also environmental care. In 2014, the company purchased the products certified to be environmentally-friendly, such as photocopiers which can be used with green-labeled products. In other words, they are machines used with dry ink only, which is safe for users. Moreover, we purchased detergent which is not harmful to the environment and kills germs by bacteria. This helps reduce the amount of chemicals contaminated in the waste discharged to the environment. In addition, we have used water-efficient urinals, and folders and stationary labeled Green Product. A.P. Honda Co., Ltd. 10. Social Performance 057 Social Performance A.P. Honda Co., Ltd. Employee Care for Sustainability Furthermore, the company emphasizes concrete equality and provides all associates with opportunities to express their abilities, as well as allowing them to grow in their careers equally, regardless of educational backgrounds. A.P. Honda Co., Ltd. has given an importance to the development of associates’ potentials, as well as remunerations and benefits for many years. Under the company’s current business plan focusing on “striving to be the company that society wants to exist”, we have focused on the development of associates abilities in the way that supports and accommodates the company’s business in the long run, along with preparing them for executive positions. Also, we have considered the adjustment of remunerations and benefits to be competitive enough to attract them. The company has Human Resources Department to take care of human resources management strategies and operations, including salary, benefits, and other rewards, associates assessment, internal and external trainings for associates development, and NH Circle, which is the kind of activities for the associates to improve their working system by themselves. Also, they can submit work-related complaints or requests via Opinion Box. Employment In 2014, we hired associates as can be categorized by levels as follows ; 300 Executive Director 250 Senior Advisor & Co-ordinator 202 200 185 181 AM-GM Management 150 131 130 129 Staff 100 50 0 Male 42 40 1 11 7 0 2012 1 Female 15 2 7 2013 15 0 1 3 6 2014 15 0 1 Remarks : GM - General Manager, AM - Assistant Manager 058 Social Performance A.P. Honda Co., Ltd. Number of associates categorized by the types of contracts Permanent associates Total 250 200 Total 247 167 Total 255 260 176 171 150 100 80 84 84 50 0 Male Female Male 2012 Female Male 2013 Female 2014 Temporary associates 250 Total Total 123 200 Total 127 139 150 100 62 61 65 62 76 63 50 0 Male Female 2012 Male Female 2013 Male Female 2014 A.P. Honda Co., Ltd. 059 A.P. Honda Co., Ltd. Social Performance Number of associates categorized by areas Samrong Office Total 250 357 218 Total 365 223 Total 382 239 200 139 150 142 143 100 50 0 Male Female Male Female 2012 Male Female 2013 2014 Honda Big Wing Total 8 10 8 6 4 2 0 7 Total 12 12 9 9 3 3 1 Male Total Female 2012 Male Female 2013 Male Female 2014 Bangkok Safe Driving Center Total 10 8 6 4 2 0 Total 5 4 5 4 Female 2012 5 4 1 Male Total 1 Male Female 2013 1 Male Female 2014 As the company’s business is related to motorcycle, driving skills and experience and knowledge of vehicle techniques are required. Therefore, male associates outnumber female for the benefit of practical and effective operation. 060 Social Performance Development of human resources abilities is the most important basis of becoming a strong organization. A.P. Honda believes that efficient associates will have the ability to lead the organization to sustainable growth. In 2014, the company increased the recruitment of both permanent and temporary associates to support each section by 7%. Most of the recruits are engaged to work in business planning and product planning Division to enhance the effectiveness of work and accommodate our business expansion such as Big Bike business. This is for the purpose of stabilizing the company’s foundation and strategizing human resources development plans to create efficient manpower for the organization in the future, as well as preparing for the coming integration of Thailand into the ASEAN Economic Community (AEC) The company has not recruited new associates who are over 50 years of age because it is the corporate policy to promote the associates who have been growing in their careers from the operational levels to be the executive officers. We strongly believe that giving the associates an opportunity to grow and achieve their career paths will be of benefit to both the company and the associates A.P. Honda Co., Ltd. themselves. This process will build organizational commitment in their minds. They will deeply understand the Honda fundamental philosophy, principle, and organizational culture. Strategies and plans will be implemented continuously as they have been familiar with all processes for years. Furthermore, collaboration between Thai associates will facilitate the work processes since they understand the needs and styles of one another. All associates will feel encouraged to express their abilities as they see the possibility to grow. All of the Thai top managements in the company have been promoted from the operational levels. The number of relinquished associates in 2014 increases from the year earlier due to the wishes to have private business, retirement, and further study, respectively. This is still considered as a small ratio when compared to the overall number of our associates. Thanks to the reasonable remunerations which are appropriate for the levels of responsibility and comparable with those offered by the other companies in the same business, as well as good working environment and concrete opportunity in career paths, 95% of the associates express their intention to work for the company in the long term. Thai local staff is strong since they have been growing from operational positions to managerial. The staff who has worked and developed themselves like this will know the background of their work. They are familiar with the company and be able to work well together. This is the unique nature of Thailand, which can rarely be found in other countries. Mr. Tatsuhiro Oyama, former President, A.P. Honda Co., Ltd. 061 Social Performance A.P. Honda Co., Ltd. Number of the new associates categorized by genders Year 2012 2013 2014 Gender Permanent Associates Temporary Associates New associates (persons) Total of Associates Percentage New associates Total of Associates (persons) Male 11 167 6.6% 6 62 9.7% Female 4 80 5.0% 0 61 0.0% Total 15 247 6.1% 6 123 4.9% Male 7 171 4.1% 14 65 21.5% Female Total 1 84 1.2% 4 62 6.5% 8 255 3.1% 18 127 14.2% Male 26 176 14.8% 21 76 27.6% Female Total 10 84 11.9% 8 63 12.7% 36 260 13.8% 29 139 20.9% Percentage Number of the new associates categorized by ages Year 2012 2013 2014 Range of Age Permanent Associates Temporary Associates New Associates Percentage New Associates Percentage Younger than 30 13 5.3% 4 3.3% Between 30-50 2 0.8% 2 1.6% Over 50 - 0.0% - 0.0% Total 15 6.1% 6 4.9% Younger than 30 6 2.4% 16 12.6% Between 30-50 2 0.8% 2 1.6% Over 50 - 0.0% - 0.0% Total 8 3.2% 18 14.2 Younger than 30 18 6.9% 26 18.7% Between 30-50 18 6.9% 3 2.2% Over 50 - 0.0% - 0.0% 36 13.8% 29 20.9 Total 062 Social Performance A.P. Honda Co., Ltd. Number of the new associates categorized by areas Year Workplace area Total Percentage New associates Percentage 357 13 3.6% 6 1.7% Honda safe driving center,Bangkok 5 - 0.0% - 0.0% Honda Big Wing 8 2 25.0% - 0.0% 370 15 4% 6 1.7% 365 8 2.2% 12 3.3% Honda Safe Driving Center, Bangkok 5 - 0.0% - 0.0% Honda Big Wing 12 - 0.0% 6 50.0% 382 8 2.0% 18 4.7% 382 30 7.9% 21 5.5% Honda Safe Driving Center, Bangkok 5 5 100.0% - 0.0% Honda Big Wing 12 1 8.3% 8 66.7% 399 36 9.0% 29 7.2 Total Samrong Office 2013 Total Samrong Office 2014 Temporary Associates New Associates Samrong office 2012 Permanent Associates Total Number of the relinquished associates categorized by genders Permanent Associates Year 2012 2014 Relinquished Relinquished Percentage Total of Associates Number Number Percentage 7 4.2% 62 11 17.7% 80 5 6.3% 61 2 3.3% 247 12 4.9% 123 13 10.6% Male 171 7 4.1% 65 11 16.9% Female Total 84 1 1.2% 62 4 6.5% 255 8 3.1% 127 15 11.8% Male 176 16 9.1% 76 12 15.8% Female 84 4 4.8% 63 0 0.0% 260 20 7.7% 139 12 8.6% Gender Total of Associates Number Male 167 Female Total 2013 Temporary Associates Total 063 Social Performance A.P. Honda Co., Ltd. Number of the relinquished associates categorized by ages Year 2012 2013 2014 Range of Age Permanent Associates Temporary Associates Number Percentage Number Percentage Younger than 30 0 0.0% 11 8.9% Between 30-50 8 3.2% 2 1.6% Over 50 4 1.6% 0 0.0% Total 12 4.8% 13 10.5% Younger than 30 4 1.6% 14 11.0% Between 30-50 0 0.0% 1 0.8% Over 50 3 1.2% 0 0.0% Total 7 2.8% 15 11.8% Younger than 30 6 2.3% 12 8.6% Between 30-50 9 3.5% 0 0.0% Over 50 5 1.9% 0 0.0% 20 7.7% 12 8.6% Total Number of the relinquished associates categorized by areas Year Total of Associates Workplace area Percentage Number Percentage 357 12 3.4% 13 3.6% Honda safe driving center, Bangkok 5 0 0.0% 0 0.0% Honda Big Wing 8 0 0.0% 0 0.0% 370 12 3.2% 13 3.5% 365 8 2.2% 12 3.3% Honda Safe Driving Center, Bangkok 5 0 0.0% 0 0.0% Honda Big Wing 12 0 0.0% 3 25.0% 382 8 2.0% 15 3.9% 382 19 5.0% 10 2.6% Honda Safe Driving Center, Bangkok 5 0 0.0% 0 0.0% Honda Big Wing 12 1 8.3% 2 16.7% 399 20 5.0% 12 3.0% Total Samrong Office 2013 Total Samrong Office 2014 Temporary Associates Number Samrong office 2012 Permanent Associates Total 064 Social Performance A.P. Honda Co., Ltd. Benefits and treatment for permanent and temporary associates We offered competitive benefits to both permanent and temporary associates. Only a few differences are found in different area of work, such as meal allowance. However, in considering the associate benefits and rewards, the company takes the economic and social needs as well as the comparative survey of other company in the automotive business into account. In addition to the normal benefits, the company sees the urgent need to prevent the associates from the influenza; therefore, we provide vaccination to all associates free of charge. With regard to working hours, the company species three flexible time slots, which are 8.00 a.m.,8.30 am. and 9.00 a.m., for each associate to manage their time as appropriate on the condition that they have to complete daily hours. The second and third Wednesdays of each week are indicated as No OT Days for the associates to send their time to do activities for their personal benefits such as doing workout at the fitness provided by the company as associate benefits. During the political unrest in 2013, the Human Resources Department have closely followed the updates and kept the associates updated regularly to report the situations and prevent themselves from being affected by the protest while commenting to work. The associates who stayed in the risky areas were allowed to take leave or work at home on the supervisor’s approval. Moreover, during the long holidays as New Year or Songkran, Communication Route Commission will be formed for the purpose of giving the associates useful information and acting as the channel where the associates could report the accidents happening to them in order for the company to provide assistance in real time. The company provides the associates and their families with appropriate benefits beyond the statutory minimum, which is in accordance with economic and social situations. These include provident fund, travel allowance, meal allowance, second language fee, uniform, medical allowance, nursing room, loans for residence, cars, motorcycles, emergency loan, fitness, recreation activities for the associates to build relationships, annual trips for the associates and their family. 065 Social Performance A.P. Honda Co., Ltd. Comparison of the benefits between permanent and temporary associates Welfares/benefits Permanent associates Temporary associates Experience fee Specialist fee (technicians, salespeople) - Professional fee (interpreters, lawyers/solicitors, IT) Commission fee (technicians, salespeople) - Meal allowance Travel allowance Provident fund - Medical allowance Uniform Annual checkup Life insurance and group insurance - Work tokens for retired associates Travel incentives for the associates who have worked for 20 years - Annual recreation activities Discounts on Honda motorcycle Loan for purchasing Honda motorcycle Loan for purchasing Honda cars English and Japanese language training support - First child allowance Monthly allowance for unemployed spouses Monthly allowance for parents (parents who over 60 years of age) Monthly allowance for children (children who are up to 18 years of age) - Allowance for residences affected by disaster Allowance for funerals of associates and their family members Residential loan - Medical loan for associates and their family members Study loan Funeral loan for family members Emergency disaster loan Associate sport competitions e.g. football, bowling, badminton Library - 066 Social Performance A.P. Honda Co., Ltd. Private parenting leave The associates are entitled to take parenting leave categorized by genders. Female associates are granted maternal leave, while male associates can take 3-day leave to take care of their wives during the childbirth period. Both permanent and temporary associate are equally entitled to this leave. Furthermore, the company provides other benefits 2013 to support parenting, such as first child allowance, allowance for children (aged not over 18), as well as the preparation of budget for building a room for female associates to keep their breast milk during breastfeeding period. This project is expected to be done in 2015. Leave type Permanent associates Male Female Temporary associates Male Female Number of the associates entitled to take maternal leaves categorized by genders 171 (100%) 84 (100%) 65 (100%) 62 (100%) Number of the associates entitled to take parenting leave 7 4 - 2 Number of the associates who return to work after parenting leave 7 4 - 2 Number of the associates who return to work after the termination of parenting leave and continue working for 1 year 7 4 - 2 100% 100% 100% 100% Proportion of the associates return to and remain at work after the termination of leave 2014 Leave type Permanent associates Male Female Temporary associates Male Female Number of the associates entitled to take maternal leaves categorized by genders 176 (100%) 84 (100%) 76 (100%) 63 (100%) Number of the associates entitled to take parenting leave 3 1 - 3 Number of the associates who return to work after parenting leave 3 1 - 3 Number of the associates who return to work after the termination of parenting leave and continue working for 1 year N/A N/A N/A N/A Proportion of the associates return to and remain at work after the termination of leave N/A N/A N/A N/A In 2013, the rate of associates returning to work after maternal leave was 100%. In 2014, there have been some associates taking leave, so the information is in the compilation process. A.P. Honda Co., Ltd. 067 Social Performance Management of relationships between the organization and the associates Taking into consideration the statement made by the former President saying that “The associates are the most important resource of the company. We will never make people happy unless we have happiness first”. For this reason, we should make our associates happy so that they represent the company in creating and delivering joy to customers”, A.P. Honda puts and emphasis on making the associates happy and enjoy they daily work. The associates are allowed to express their opinions through top-down communication from the management to the subordinates in the form of Company Break Down, and through the formal bottom-up communication which is the presentation by the Employee Welfare Committee and informal communication with the top management of the company, or President Round Table. Both types of communication help strengthen the relationships between the associates and the company. In addition, the company has continuously done the activities to promote the relationships between the managements and the associates and among the associates themselves. For example, Annual seminar: The company arranges study trip to build the associates relationships, which last 3 days 2 nights. A.P. Honda Family Day: The associates are permitted to take their families on the study trip and join the activities for 1 day. Songkran’s Water Pouring: For the associates to maintain Thai culture, they will have an opportunity to put water onto the senior managements’ hands and ask for blessings. Making-merit ceremony in celebration of the company’s anniversary: On the company’s anniversary date, the managements and associates will make merit together for a spirit of goodwill. New Year’s Party: At the end of the year, the managements and the associates will participate in stage shows, dinner, and prize draws altogether. In terms of the employment benefits, 100% of the associates are covered under the employment benefits coverage. In other words, the negotiations in relation with employment conditions or benefits between the associates or employee and the company can be conducted through The Employee Welfare Committee (EWC) whereby the EWC will represent the associates of all types of employments and all areas of work. They will discuss, advise and suggest the associates what should be done about the employees’ employment and benefits. The EWC election is conducted once every 2 years. 068 Social Performance In 2014, there were 5 members of EWC elected, which accounted for 1.1% of all associates. The committee proposed to the company 3 agendas about associates benefits, one of which has already been approved by the company, namely the conditions of trip for the associates who have worked for 20 years. 2 agendas, which are the adjustment of provident fund rate and the change in place for holding the retirement party, are being considered. A.P. Honda Co., Ltd. 2. Provident fund All permanent associates automatically become members of the provident funds when engaged as permanent associates. To become members of the provident fund the associates must submit application forms to the fund committee. Provided the associates do not want to be members, they can give the committee a written notice. In 2014, 265 ass0ciates (100%) are members of the With regard to the notification of work-related changes provident fund, to which the company has paid 17,696,446.59 or rotation of workplaces, the minimum period of notification baht. to the associates is not specified in writing though such changes may affect the associates. Practically, however, before the changes which are expected to significantly impact the associates, such as the changes in regulations and rotation of work places, occur, the company will call for meetings and/or individually notify related associates of the The company stresses the importance of continuous changes. Also, these changes may be communicated to all associates development; especially we focus on long-term staff during quarterly general meeting. improvement. Essential trainings, which cover both core Associates development for Sustainability course and specialty course, are provided to the associates Liability coverage for associates benefits after of every level. The training topics will be specified in accordance leaving the company with theirs needs, requirements of work and current situations. The benefits given to permanent associates can be In addition to trainings provided by the company, each divided into 2 types. department may arrange their associates to participate in the trainings arranged by external organization as appropriated 1. Compensation in accordance with the labor law and interested. The retired associates will be compensated at the rate specified by the labor law. The company allocates this The company has also applied the training course from compensation appropriately. The related budget has been Global Honda. The Genba training, or on-the-job training, is planned, controlled and reviewed once every 3 months, provided to all new associates. The trial learning and practice 1 year and 3 years. has been done in the production process the plant of Thai Honda Manufacturing Co., Ltd. at Ladkrabang for 1 week, In 2014, 5 associates were retired. The total amount and learning of work process at A.P. Honda office for 1 week, compensation paid to them in 2014 is 4,855,696.00 baht. totally 2 weeks. This is for all associates to experience the Furthermore, they were given tokens for retired associates, actual process of work before starting their work in accordance which is worth 360,417.57 baht. with Honda principle of 3 truths. 069 Social Performance A.P. Honda Co., Ltd. In 2014, the company arranged the important training topics for the associates of all levels, as well as specific training for certain positions, which are 1.Leadership Training : Be Proactive 2.Leadership Training : 7 Habits of highly effective people 3.People Management (Assessment techniques, NLP Technique to Coach) 4.Job Improvement : Process Mapping 5.Job Improvement : Practical Innovation 6.Problem Solving and Data Analysis 7.Customer Centric 8.Customer Insight Workshops for associates ability enhancement Information about associates training (hours/person/year) Senior Advisor Operational AM-GM level & Coordinator level Executive Director level Year Gender 2012 Male 22.02 8.95 12.00 1.71 Female 13.24 15.27 - - Male 8.85 7.29 - 1.71 Female 5.24 9.53 - - Male 14.94 21.22 - 2.00 Female 7.51 25.20 - - (hours/person/year) 2013 (hours/person/year) 2014 (hours/person/year) There are no female Executive Directors or Senior Advisors and Coordinators in the company. Average training hours 17.89 7.26 13.16 070 Social Performance A.P. Honda Co., Ltd. The pre-retired associates have been encouraged to save money through the allocation of remunerations to the provident fund in the rate comparable to other companies in the same business. This is to ensure that the associates will have enough savings for their life after retirement. In addition, the company allows the associates who want to do private business to apply for Early Retirement Project form which they will be given compensation at the specified rate. Also, the company provides the associates with special Project of management of skill and lifelong benefits helping them to increase knowledge and skills which may of use to them after retirement, such as second language learning (English or Japanese) learning allowance and training of Concerning of management of skill and lifelong learning daily life knowledge as The 7 Habits of Highly Effective People. which supports continuous employment and assistance for associates in work goal setting, the company encourages The company makes associates performance assessment the associates to develop their abilities both in and across twice a year with clear criteria and assessment period. Both their work fields. This is because the company believes that permanent and temporary associates working in all areas all associates should learn the work in their fields for them will be assessed. 100% of associates has been assessed and to grow in the careers by participating in training courses reviewed work performance in 2014. intheir field, in management fields, and in overall improvement of work efficiency, both provided by the company and by the With regard to associates proportion and components external organizations, as well as joining NH Circle activities. of management, A.P. Honda emphasizes equality and allows all associates to express their efficiency and abilities, regardless With regard to development of effective communication of educational backgrounds. They have equal opportunity and presentation, all associates are required to take turn to to grow in their careers. In terms of office space, it was present monthly work reports of their departments to the designed without pillars to block the space. We do not have top management. This is for the associates to develop their private rooms for top managements. We have only small logical thinking, analytical skills and presentation techniques. meeting rooms and offices for certain departments whose They will take comments and suggestions obtained from the work must be confidential. This is for all associates to feel managements to improve their communication and analysis. that they are equal, and it also facilitates communication. Equality refers to the acceptance of individual diversity and respect for such diversity. Everyone must be treated equally. Races, ages, nationalities, educational backgrounds, social and economic status will not impact their opportunities (equality is one of Honda fundamental beliefs about respect for individuals comprised of initiative, equality and trust. 071 Social Performance A.P. Honda Co., Ltd. Criteria for associate components Executive Director AM-GM level Senior Advisor & Coordinator Operational level Male 6 (85.7%) 1 (100%) 40 (78.43%) 181 (58.39%) Female 1 (14.2%) - 11 (21.57%) 129 (41.61%) Younger than 30 - - - 15 (4.84%) Between 30-50 - 1 (100%) 46 (91.20%) 285 (91.94%) 5 (9.80%) 10 (3.22%) 2012 Criteria for associate components Over 50 7 (100%) Thai 5 (71.4%) 1 (100%) 51 (100%) 310 (100%) Japanese 2 (28.5%) - - - Executive Director AM-GM level Senior Advisor & Coordinator Operational level Male 6 (85.7%) 2 (100%) 42 (73.68%) 185 (58.73%) Female 1 (14.2%) - 15 (26.31%) 130 (41.27%) Younger than 30 - - - 18 (5.71%) Between 30-50 - 1 (50.00%) 49 (85.71%) 289 (91.75%) Over 50 7 (100%) 1 (50.00%) 8 (14.29%) 8 (2.54%) Thai 5 (71.4%) 1 (50.00%) 57 (100%) 315 (100%) Japanese 2 (28.5%) 1 (50.00%) - - Executive Director AM-GM level Senior Advisor & Coordinator Operational level Male 6 (85.71%) 3 (100%) 41 (73.21%) 202 (60.66%) Female 1 (14.29%) - 15 (26.79%) 131 (39.34%) Younger than 30 - - - 26 (7.81%) Between 30-50 1 (14.29%) 2 (66.66%) 48 (85.71%) 298 (89.49%) Over 50 6 (85.71%) 1 (33.33%) 8 (14.29%) 9 (2.70%) Thai 5 (71.43%) 1 (33.33%) 56 (100%) 333 (100%) Japanese 2 (28.57%) 2 (66.66%) - - 2013 Criteria for associate components 2014 Criteria for associate components 072 Social Performance Principle of human rights for Sustainability Human rights practice The way we treat the associates is on the basis of Honda philosophy, of which fundamental beliefs include “Respect for Individuals”, which means respect for individual diversity, treat and give opportunity to them equally. Races, ages, nationalities, educational backgrounds, social and economic status will not impact their opportunities. A.P. Honda Co., Ltd. Examination of discrimination will be conducted upon the petitions from they via the following channels : Opinion Box which is placed in the common areas of the company such as pantry and in the Intranet system. The opening of the opinion box will be done by the representatives of Human Resources, Good Governance Committee and employees Welfare Committee once a month. The result of petition consideration will be communicated to the associates in quarterly general meetings. Methods and procedures of petition aim to promote mutual understanding between the company and the associates and to reduce problems or conflicts which may affect work performance. Appropriate judgment and disciplinary penalties will be done in a fair manner (Reference: Rules and regulations of work, Chapter 2 Work Rules, Clause 10) Expression of Opinions and Petition) Honda philosophy and fundamental belief about “Respect for Individuals” are communicated to the associates since the orientation day. It has been fostered to be practiced by the associates of all levels in all activities, such as the distribution of Honda philosophy manual to all associates and placing of the company philosophy signs around the workplace as in the meeting rooms to remind the associates Results : In 2014, no petition against discrimination was of the importance of this philosophy. Moreover, by noticing found in the Opinion Box and Petition Procedures. the signs, the associates will absorb the philosophy and take it as personal reference. A.P. Honda Co., Ltd. 073 Social Performance Associates rights and freedom The company grants the associates the rights and freedom to express their opinions or make suggestions which benefit the company in accordance with Honda management policy, one of which is enjoy your work and fully support the expression of opinions. Therefore, all Honda associates are encouraged to give opinions and suggestions in all occasions. Honda management policy regarding the full support of opinion expression fosters the associates to take it into practice at every level and everywhere, including Election of Employee Welfare Committee (EWC) to participate in discussions or provide suggestions about associates or employee welfares and benefits to the employer Suggestion Activities using Suggestion Box placed around the company such as in the hallways. Once a month Human Resources Department compiles employee comments and suggestions from the box and takes them to the assessment, bonus points and rewarding processes. These suggestions and assessment results will be announced and promoted in the company. In addition, the best suggestions of the quarter and of the year will be awarded the prize. In 2014, 283 suggestions were submitted by the associates, which accounts for 0.6 suggestions per one associate. Opinion box Improvement of Now New Next Honda Circle, NHC : the company annually arranges NH Circle activity where the associates are allowed to form groups and indicate the topic to be improved. Then they specify goals, plans and practice to achieve those goals. There is a competition both in the company and between the companies in Honda Group of Companies in Thailand. 074 A.P. Honda Co., Ltd. Social Performance Hok-Ka-Lom is a representalive of Asia-Oceania showing the Project in inter Bloc, Rome, Italy In 2014, the company’ associates under the group titled Hok-Ka-Lom have created the project “Reduction of costs generated by bird droppings” which was awarded the prize at Asia-Oceania level Also, they were given an opportunity to present the project on NH Circle stage of Honda Inter Bloc in Rome, Italy. Regarding work space, the company has the head office in Samrong, Honda Safe Driving Center Bangkok and Honda Big Wing. The location of all places does not indicate the risk of infringement of the associates’ liberty in forming association and making negotiations. The examination of work processes in relation with the infringement of or the risk of infringement of the associates’ liberty in forming association and making negotiations will be conducted through petitions. The channels through which the associates can file petitions are Opinion Box and Methods and procedures of petition NHC or New Honda Circle is the activity used by Honda Global as a tool to improve the quality of work performance.The objective is to encourage the associates to think logically and analyze systematically to resolve problems of work system and to create good environment at work. Mr.Akihiro Hara Director, A.P.Honda Co.,Ltd. A.P. Honda Co., Ltd. 075 Social Performance The evaluation of the effects on No harassments of all forms, including sexual harassment. The associates must not be forced to work human rights overtime, no physical force, no rude words or physically and The company gives an importance to human rights mentally insult. standards in accordance with Global Honda Philosophy of which fundamental belief emphasizing the Respect for Honda Conduct Guideline will be communicated to the Individuals. The company, therefore, announced Honda associates on the orientation day and encourage them to Conduct Guideline which was brought into effect on 1 January put it into practice. The manual of Honda Conduct Guideline 2014. Respect for Human Rights is also one of Honda Conduct, will also be given to the associates as well as posted on the Intranet. which includes Principle of equality will be used in associates recruitment procedure, work rotation and promotion, regardless of educational backgrounds, educational institutes, races, skin colors, and ages. No verbal and non-verbal discrimination. For example, the associates must not say or act in the way that expresses discrimination or mocking of the other’s body. Work environment must be arranged in the way to facilitate equality without separation of ranks or positions. The examples of this include the arrangement of work space where there are no partitions for top management offices, the use of the company’s parking space on the basis of First Come First Serve, queuing up for buying food at the company’s canteen, and so on. The company’s work space is not separated or partitioned on the basis of equality To examine the result of the petition management, all company’s work fields including Samrong Head Office, Safe Driving Center and Honda Big Wing, are required to make self-verification through Honda Corporate Governance checklist on yearly basis to evaluate the effects on human rights. Therefore, it can be concluded that 100% of the work fields are covered under this evaluation. In 2014, no petitions for the effects on human rights were found in the Opinion Box or the formal petition procedure. Also, the company have improved work environment; for instance, the change of all associates’ chairs to more comfortable ones, improvement of associates’ toilets, as well as the addition of more green space , garden and relaxing area for the associates to get relaxed during lunchtime. 076 Social Performance A.P. Honda Co., Ltd. Product Responsibility Responsibility for customers’ health and safety Safe products As the world biggest manufacturer of automotives driven by modern technology, Honda’s commitment is to create safe products for users and pedestrians. To achieve that goal, we combine protective and preventive safety technology to ensure the safety and reduce driving accidents. The protective safety includes turning and stopping technology for drivers to have safety assisting tools and protect them from possible accidents. As for the preventive safety technology, it has been created to reduce the level of severity and injury caused by accidents which may happens to drivers and passengers as well as pedestrians. This commitment has been transferred to A.P. Honda, who is the biggest motorcycle distributor in Thailand. The company realizes the effects on riders’ health and safety; therefore, Honda’s motorcycle have been through the R&D process in terms of equipment or system installation to ensure riders’ safety of every model of motorcycles. In 2014, we announced the policy and managed to install Combi Brake system which enhances safety. In addition, the Idling Stop system has been installed in Honda’s AT model motorcycles to distribute brake force and save fuel. This could help save energy and curb environmental pollution. Operational equipment and systems related to consumers’ health and safety include AT Automatic Combi Brake : Brake force distribution technology (available in some models) When holding the left handbrake, the system will distribute the brake force from rear wheel to front wheel automatically, which results in accurate, balance braking and the rear wheel is not locked. AT Brake Lock Lever (available in some models) Wheel locking system to prevent the motorcycles from slipping when parked on steep paths AT MC ABS : Anti-Lock Brake system (available in some models) Front and rear wheels anti-lock brake system along with two-piston front wheel disc brake which ensure the motorcycles control despite immediate braking. It is the world class safety standard. The examples of the motorcycles equipped with ABS system are Forza300 and CBR300R. AT Side Stand Switch Its function is to cut the engine operation when putting the side stand down to prevent unexpected accidents caused by unintentional accelerator twisting while stopping. This switch is installed in all Honda’s AT motorcycles. Systems or equipment for health and safety 077 Social Performance A.P. Honda Co., Ltd. Brake Operation and Braking Distance Rear brake Front brake Front & Rear brake The picture showing a relationship between each type of brake and braking distance In 2014, the company has operated in compliance with the law. There were no cases of infringement or refraining to comply with the law for the customers’ health and safety. Combi Brake System Generally, there are 3 types of brake controls operated by motorcycle riders when having immediate braking : 1) using rear brake only, 2) using front brake only, and 3) using both front and rear brakes together. The 3 types yield different effectiveness of braking. •Using rear brake only or grasping left brake only – This method cannot make the motorbike stop at the short distance. If the brake is grasped too tightly, the rear wheel will be locked and the braking distance will be longer. •Using front brake only or grasping right brake only – This results in shorter braking distance than using only rear brake. However, if the front wheel is locked, it will be so hard to control the motorbike and it might fall at the end. •Using both front and rear brakes together or grasping both left and right brakes at the same time – This results in shorter braking distance than using only front or rear brake as the brake force is appropriately distributed. 078 Social Performance A.P. Honda Co., Ltd. Brake Performance (m/sec 2) Deceleration LEFT BRAKE LEVER LEFT BRAKE LEVER LEFT BRAKE LEVER Combi Brake Standard Brake Input Comparison of Deceleration (Left Lever Operation) The R&D team of Honda Motor Japan has studied and developed the braking system to help riders to use brake appropriately and efficiently. The result of this development is Combi Brake system, which requires riders to grasp the left brake only. The brake force will be distributed from the rear to the front wheel automatically, leading to more effective, well-balanced brake. (N) The picture shows the effectiveness of Combi Brake system by comparison between normal use of rear brake and the use of Combi Brake, where Line graph refers to the relationship of grasping left brake which reduces the motorcycle speed. The green line refers to normal brake system The red line refers to Combi Brake system vertical axis refers to reducing speed. Horizontal axis refers to force of brake grasping It can be seen that Combi Brake system does not require much force to grasp the brake, but can reduce the speed better than the normal brake system does. Riders can be ensured of safety. 079 Social Performance A.P. Honda Co., Ltd. Side Stand Switch When riders wants to park their motorcycles for a while, they may put the side stand down without twisting key switch in order to make it easy for them to ride the motorcycles right away when coming back. This habit may cause the accidents to happen as the riders themselves or children may unintentionally twist the accelerator and the motorcycles moves forward while the side stand is still down. This will endanger pedestrians, especially the AT model motorcycles, which does not need to be put in gear. The motorcycles can move forward with only activation of the accelerator. For family motorcycles, riders can put their motorcycles in neutral gear to prevent them from moving. For this reason, Honda has developed the Side Stand Switch, which can cut the operation of engines installed at the side stand. It will make the engine shut down immediately after the side stand is put down to prevent Emission 1,2 (1993-1997) Emission 3 (1997-2001) unexpected incidents caused by unintentional twisting of the accelerator while parking without turning off the motorcycles. If riders want to turn on the engine, they need to pull the side stand up; otherwise the engine cannot be turn on. This method helps remind riders to pull up the side stand. In 2014, there were no cases of infringement or refraining to comply with the law. Honda realizes the impacts of motorcycles’ exhaust emission and actively takes action to prepare all Honda motorcycles to pass the amended standard level of exhaust. We has ceased the production of two-stroke engine motorcycles and announced the production of the four stroke engine ones. This is to be in concordance with the enforcement of standard exhaust level 3 proclaimed by the government, as well as the installation of injection system in all Honda motorcycles to accommodate the standard exhaust level 5. Emission 4 (2001-2004) Emission 5 (2004-2009) Emission 6 (2009-present) recommended Ceasing the production of two-stroke engine motocycles in Thailand and changed to four-stroke engine in 2000 to reduce air pollution recommended recommended Development of PGM-FI Model 2 PGM-FI Model 1 recommended for environment, fuel saving and better efficiency Development of four-stroke engine 125 cc Announcement of four-stroke engine motorcycles Year ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 Announcement of PGM-FI policy ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 080 Social Performance A.P. Honda Co., Ltd. Nowadays, all Honda motorcycles have passed the standard exhaust level 6. However, Honda is still developing environmentally-friendly along with fuel saving technology. For example, Adjust the piston ring to be more compact and change the rough cylinder case for more effective and faster ventilation Design the magnet in ACG to be lighter Adjust the wheel bearing to have low friction Change the compression ration from 9.0 => 9.3N Install fuel-saving tires Wave110i can save fuel at 64.4Km/L as tested using Mode ECE R40 of Thai Industrial Standards Institute, Ministry of Industry, by Honda engineers. Recently, Wave110i has been developed to use new injection engine level 5. All Furthermore, Honda has developed. Idling Stop system and components have been designed to reduce friction, and the eSP engine to reduce the pollution and save energy for AT equipment has been adjusted to be more compact and slim model motorcycle. as follows : Standard of pollution discharge from new vehicles (motorcycles) TISI standard Level 4 (TIS 1650-2545) Level 5 (TIS 2130-2545) referenced stadard Test 1 : Following ridig pattern 97/42/EC JASO T 902-95 Taiwan CO more than 4.5 g/km , HC+Nox less than 3 g/km 97/24/EC JASO T 902-95 Taiwan Evap less than 2 g/test CO less than 3.5 g/km , HC+Nox less than 1.8 g/km. Evapmore than 2 and less than 6 g/test CO not exceed 3.5 g/km., HC + Nox not exceed 1.8 g/km. Test 2 : Idle speed White smoke Evaporation Durability against pollution controlling Effective date equipment CO not exceed 4.5% HC1 2 g/test for 150 g/ test Tested at 6,000 km and extected to reach 12,000 km. 30/7/1999 2 g/test Tested at 7,500 km expected to reach 15,000 km. Over 110 cc 1 June 2004 All sizes 1 July 2004 * 50 - 169 cc tested at 12,000 km. * 170 - 269 cc. tested at 18,000 km. * more than 270 cc tested at 30,000 km. 1 January 2008 (in the process of proposal submitted to the National Environment Committee) CO1 , HC 1 15% 15% Size less than 150 CC Level 6 97/24/EC (B) Evap less than 2 g/test, CO less than 2g/km. , HC less than 0.8 g/km., CO not eceed 1.5% Nox less than or 3.0% HC not 0.15 g/km. exceed 1,000 bpm (under Size more than/ consideration eqnal 150 CC of proposal) Evap less than 2 g/test CO less than 2g/km. , HC less than 0.3 g/km., Nox less than 0.15 g/km. 15% (for two-stroke engine 2 g/test motorcycles only) 081 A.P. Honda Co., Ltd. Social Performance Idling Stop System Idling stop system is the system to stop the operation of the engine at idle speed. If the motorcycles is parked more than 3 minutes while the battery is still working and the dial is in the standby mode, the engine will function automatically upon the accelerator activation. The motorcycle will move forward smoothly. This system helps save fuel and reduces pollution. According to the TISI’s Mode ECE R40 test conducted by Honda engineers, it was found that when the Idling Stop is functioned, 5-7% of fuel can be saved (depends on each model). This system is currently installed in MOOVE, Click125i and PCX150 models. eSP [ENHANCED SMART POWER] eSP is one of the most efficient engine technology designed perfectly in every detail, for example, • All components of the engine are designed to ensure the smooth function and reduce friction for fuel efficiency. • The new combustion chamber is designed for more complete combustion system and more effective function of engine. • V-belt is used to enhance the efficiency of riding on the road of all conditions. • PGM-FI (Programmed Fuel Injection) is controlled by ECU, which ensure the accurate distribution of fuel and clean exhaust. • It is the system which combines the startup and charging systems together, which helps save energy and reduce startup sound. User Manual Along with the distribution of Honda motorcycles to users, user manuals for the riders to learn safe riding, maintenance, solutions to possible problems, necessary information, and technical information are attached. The ratio of the manual distribution, including warranty booklets and questionnaires to investigate the users’ opinions about Honda motorcycles, to the number of sold motorcycle is 100%. The data obtained from the questionnaire will be used for development of work and motorcycle quality. Regarding the product labels, the product quality standard is clearly shown, which includes Motorcycle Exhaust Emission Standards 6, four-stroke PGM-FI and technical information about each product model. In addition, important technological symbols, such as eSP and PGM-FI, are also attached on the body of some motorcycle models. 082 Social Performance A.P. Honda Co., Ltd. Safe product use Safety Thailand Program. Honda’s commitment for safety is not limited to only the company’s responsibility for producing and presenting the safest products to customers. Beyond the invention of leading automotive safety technology, A.P. Honda believes that the riding disciplines are of equal importance. In 1989, the company initiated the “Safety Thailand” project to promote riding safety to motorcycles riders and the public, which leads to the reduction of traffic accidents each year. The aim of this project is to reduce the loss caused by road accidents and establish the safe riding culture in Thailand. During 25 years, the company has worked in collaboration with government and public sectors to operate 4 principal domains of the project as follows : 1. Safe riding courses which has been researched and adjusted to suit Thai context and accommodate the users of all types and ages. There are 9 courses in total, ranging from PDSA or Pre- Delivery Safety Advise for motorcycles buyers, Introduction Course, Basic Course, Big Bike Course, Sub-instructor Course, Instructor Course, Pre-license Course, License Course, and Safe for Kids. From 1989 to 2014, there have been 23,034,781 persons attending the training courses Performance in 2014 2. Instructor and Sub – Instructor Course : All Honda dealers are required to have a safe riding instructor trained by A.P. Honda to inform knowledge to users. From 1989 to 2014, there have been 27,000 persons trained in these courses, which is comprised of 3,019 instructors and 23,000 sub-instructors. Performance in 2012 184 737 30 951 persons Super Instructor Instructors Sub Instructors Training course Performance in 2013 31 181 669 881 persons Training course organizers Trained by dealers Trained by A.P. Honda 1,903,122 persons 1,881,704 persons 1,168,802 712,902 21,418 persons 0 21,418 Super Instructor Instructors Sub Instructors Training course Performance in 2014 39 137 829 1,005 persons PDSA course for motorcycle buyers Other courses PDSA course for motorcycle buyers Other courses Super Instructor Instructors Sub Instructors Training course 083 Social Performance A.P. Honda Co., Ltd. 3. Safe Riding Center has been established according to the international standard around the country since 1994. The first A.P. Honda Safe Riding Center in Thailand and in ASEAN was constructed to be the center for training safe riding to motorcycles riders both in theoretically and practically. People who have been trained consist of general riders and uniformed riders as policemen, traffic controllers, disaster prevention and mitigation officers, hospital’s rescue team, and so on. In 2009, the second A.P. Honda Safe Riding Center was built on the 20,000 sq.m. land, which is the biggest center in Southeast Asia. It can serve both car driving and motorcycles riding training. Then the company has collaborated with Honda motorcycle dealers to establish regional Safety Riding Centers and another center with the Department of Disaster Prevention and Mitigation, Ministry of Interior. In 2014, the company built two more centers in Chiang Mai and Phuket to accommodate the increasing number of Big Bike riders in tourist destination provinces. The construction is expected to be complete in 2015. As a result of our dedication and intention, our Safe Riding Project and Honda Safe Riding Center have been permitted by the Ministry of Transportation to train riders and issue the license to successful riders as the government agencies do. Outcome of the performance in 2014 Types of centers 1994-2013 2014 In progress of construction of 2 more centers in Chiang Mai and Phuket, totally 4 centers A.P. Honda Safe Riding Center 2 centers A.P. Honda and Honda Dealer Safe Riding Center 11 centers 11 centers A.P. Honda and Department of Disaster Prevention and Mitigation’s Safe Riding Center 12 centers 12 centers 25 centers 27 centers Total 084 Social Performance 4. Collaboration with Department of Vocational Education to establish One Dealer One School to encourage the adolescents studying in vocational schools who is at a riding age to attend the safe riding training held in their schools. There are 4 pillars of project , which are 1) Teacher training, 2) Student training, 3) Riding skill competition, and 4) Establishment of Safe Riding Centers in vocational schools. The outcome was that there have been 285,837 students in the riding age group attending One Dealer One School (ODOS) project during 2012 – 2014, and the number of accidents decreased by 40% (statistics from Department of Vocational Education). A.P. Honda Co., Ltd. In 2003, the “Turn on Head Light – Wear and Tighten Helmet” project, which had been researched by JASIC in Japan, has been initiated. It was found that this campaign helps reduce accidents, so the government enacted the law specifying that all motorcycle must have automatic head light on once the engine is started up, and starting from 2005, all motorcycle riders must turn the head light on while riding. In 2004, the Ministry of Transportation has been encouraged to establish the standard of private driving training schools to ensure the quality of drivers tested in To maintain sustainable success of the project, the application for driving licenses from the Department of Land company works in collaboration with the government to Transportation. continuously enhance the policy on reduction of the accidents and safety projects in Thailand. For instance, In 2010, Zero Accident project was initiated in collaboration with the Department of Disaster Prevention In 1997, The company collaborated with the Royal and Mitigation, local municipalities, and volunteer networks Thai Police Headquarters and Chulalongkorn University to to increase safe riding and traffic law compliance, as well conduct research on the causes of motorcycle riding as providing service of car checkup before long driving or accidents in Thailand of which findings have been used to riding and motorway rest areas, especially during the major develop new training courses and instructional media, which public holidays as New Year’s and Songkran Day. Knowledge include Honda Riding Simulator, which has been used in and information have been informed to people through riding training for the first time. advertising on television, radio, newspapers, handouts, driving manual brochures, and free distribution of safety helmets. A.P. Honda Co., Ltd. In 2014, the company has received the award for continuously promoting safe riding in Thailand for 25 consecutive years from International Association of Traffic and Safety Sciences (IATSS) in Japan. 085 Social Performance “Our business is to sell motorcycles but we don’t want to see an increasing number of road accidents, that’s why we have had a growing concern about motorcycle safety and why we have launched the project that continues to this day.” Initially, A.P. Honda sent its staff to undergo safety training in Japan so that they could promote a safe riding culture in Thailand to meet international standards, resulting in a decrease in the number of road accidents each year. The company worked closely with state agencies on its programmers, which helped contribute to better road safety. The statistics from the Department of Disaster Prevention and Mitigation and the Land Transport Department showing that traffic accidents nationwide dropped by 50%, from 120,000 in 2004 to 60,000 in 2014” Alaksh Phornprapha Director, A.P. Honda Co.,Ltd (Interviewed by : Bankok Post) 086 Social Performance A.P. Honda Co., Ltd. Responsibility for customers buying products and services From the company’s principle of “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality yet of a reasonable price for worldwide customer satisfaction.”, we realize the importance of sale and complete after-sale service to main customer satisfaction. As a result of changing consumer behavior, we set up measures to effectively respond to such behavior. An example of this is the development of dealer’s standard under the name “Honda Wing Center”, which provides one-stop service to customers, ranging from buying, selling and repairing with equal nationwide standard. The aim of this service is to increase customer satisfaction, which not only results in the increase of sales and income of the company and the dealers, but it also leads to sustainable business receiving brand loyalty from customers. The specification of standards of Honda Wing Centers has been created under the notion of advancement and friendliness. In other words, the dealers’ shops must be able to provide services and facilities which can fully respond to customers’ needs. The location, building, and space must be appropriate for providing the most effective service to customers. Local environmentally-friendly systems should be used, and the service must be provided on the basis of 5 principles, or 5S + 1 standard, to ensure that the customers will receive complete service, which leads to sustainable growth of business. S 1 – Sales is selling of new motorcycle. Customer satisfaction can be ensured by giving knowledge and suggestions, arranging space for displaying products appropriately and displaying a variety of products which can respond to the needs of all types of customers with reasonable conditions. Over 30 salespersons of the company are available for coordinating between the company and the dealers. In addition, the company made a manual of dealers’ shop standards to ensure that the customers will be satisfied with whichever dealers they get a service as we have the same nationwide standards. Improvement of product quality Honda has a strong intention to offer the best products and services to customers according to our principle, which is increasing and maintaining customer satisfaction with the company, products and services. For this reason, we have the systematic process of product follow-up and improvement. After launching the motorcycle for 3 months, we will set up a team which is comprised of Sales Unit Function, Production Unit Function and R&D Unit Function to conduct an inspection to guarantee the motorcycle quality. All obtained information will be used to improve the product quality and make it in concordance with the company’s objectives, as well as gaining sustainable trust from customers. Selling procedures purchasing process location and decoration motorcycle delivery overall satisfaction 087 Social Performance A.P. Honda Co., Ltd. S 2 - Service is to build customer satisfaction of after-sale service. In addition to good quality products, impressing the customers who come for services at the dealers’ is also important. The service section needs to taking care of providing service, and skilled technicians trained by the company provide maintenance with cutting-edge tools and equipment with reasonable charges. Furthermore, we also have 20 service staff or fieldsman to pay a visit to customers and give them suggestions on continuous standard development. The company specified the standards of service for the dealers to provide to the customers, which consists of the following stages: Stages of service standards Stage 1 Maintenance Work acceptance comprised of welcoming customers, checking customers’ needs and preliminary evaluation Stage 2 Service comprised of work assignment, operation and final check Stage 3 Delivery comprised of expense summary, motorcycle delivery and database account summary Stage 4 Customer control comprised of customer profiling, customer follow-up and regular follow-up Customer Service System of Honda Wing Center 088 Social Performance A.P. Honda Co., Ltd. Delivery -payment - return old parts Suggest Inform after repair Final check Repair Prelim evaluation Problem analysis Test Acknowledges - problem - request Action Responsibility during service process Chief technician is responsible for investigating problems, Reception is responsible for accepting customers’ analyzing problems, doing final check, informing after repair, requests, summarizing preliminary evaluation for customers and giving suggestions before motorcycle delivery and delivering motorcycles to customers Service technician is responsible for making preliminary evaluation and checking/repairing Chief technician Motorcycle acceptance Technician Sequence of service operations at customer service of Honda Wing Center Development of technicians’ repairing skill Ensuring satisfaction of the customers who have their motorcycle serviced at Honda Wing Center is the main responsibility of A.P. Honda. One of the major factors to build customer satisfaction is to finish repair under warranty period at one time. Honda specified the format of survey and evaluation, which has been continuously conducted. The obtained results will be sent to related departments to reassure Honda motorcycle riders. Customer satisfaction for service The most important goal of quality management system for corporate sustainable success is customer satisfaction for the company, products or services of the company. Therefore, it is vital that the company have the systematic and effective follow-up process and evaluation of customer satisfaction. All information in relation to customer satisfaction compiled by the company will be used to improve the strategies, production process and other attributes which are useful for customers and in concordance with company’s objectives, which may contribute to the process of improvement for reassuring and establishing the sustainable relationship between the customers and the company. Establishing satisfaction of the customers who have their motorcycle serviced at Honda Wing Center is the main responsibility of A.P. Honda, the plan for evaluating customer satisfaction has been specified as follows : Providing service Satisfaction evaluation Service Improvement Satisfaction result A.P. Honda Co., Ltd. Customer Relations 089 Social Performance All Honda dealers are required to have safety instructors trained by A.P. Honda to give knowledge and suggestions to users. Moreover, the PDSA (Pre-Delivery Safety Advice) must be notified to all motorcycle buyers, in which safe riding techniques and important traffic laws are emphasized. In 2014, there were 1,168,802 buyers receiving PDSA training. The Customer Relations Department is responsible for providing service to customers via Call Center. In other words, they need to deal with customers’ questions and requests in the most polite manner with clear and fast response. the best quality service must be delivered to customers through the most effective communication. This is the same quality S 5 - Secondhand motorcycle for complete as the customers receive from our products. motorcycle business cycle : The secondhand motorcycle Call center receives feedback in the form of questions, project was initiated in 1998 starting from the opening suggestions and complaints from customers and Tech Line of secondhand motorcycle modification center, of which from dealers or repair shops. In 2014, Call center has dealt aim was to study the method of modifying secondhand with 23,287 questions. To make sure that this valuable motorcycles. Service and production staff from Thai Honda information will be used for Honda’s benefit, Call center will Manufacturing Co., Ltd. worked together as secondhand transfer the information to R&D Department, Manufacturer, motorcycle unit. This was announced as the 5th S in Honda Service Department and Sale Department upon requested. motorcycle business in 2000 for the purpose of fulfilling the motorcycle business which has a complete after-sale S 3 - Spare Parts : A variety of Honda’s genuine service. If the users wish to change their motorcycles, parts is prepared for quick response to the customers’ needs they can sell their old ones at reasonable prices, which with reasonable prices. In 2014, the company focused on encouraged them to consider buying new motorcycles selling parts, tires, engine oil, and battery or TOB (Tire, Oil, afterwards. This service effectively raised Honda customer Battery). We provided customers with knowledge of the satisfaction. difference between genuine and fake parts through several channels, such as PR media, training course for salespersons at dealers’ shops, improvement of selling tools, and team building activities. These activities could yield 110% growth of overall sales of parts in 2014. S 4 – Safety : Safe use of motorcycle – The company and dealers have to provide the riding skill training to individual customers, organizations, and government agencies to ensure right and safe riding using Honda’s standard courses. This is for the safety of both motorcycle riders while riding Honda and pedestrians while walking in the road. 090 Social Performance In terms of secondhand motorcycle selling, the company opened a secondhand showroom at Samrong headquarters as a model for dealers. In addition, this showroom allows us to study the behavior of the customers who buy the secondhand motorcycle. We also arrange monthly secondhand motorcycle auctions at the headquarters, as well as online auction in DOSS system as a channel for dealers and A.P. Honda to distribute secondhand motorcycle. Upon successful management, A.P. Honda expanded this notion to dealers. Until now, there are 65 secondhand motorcycle centers around the country. Also, there are over 1,400 dealers’ technicians trained as modification technicians, coating technicians, and motorcycle checkup and price evaluation staff in Thailand. Knowledge and experience of secondhand motorcycle business is the result of mutual learning and studying of the company and the dealers, which can strengthen A.P.Honda business in the future Satisfaction survey Product user survey For better response to the customer needs, the company started to use questionnaires to survey Honda product users. The questionnaire is put under the seat of each new motorcycle to survey customer satisfaction of the products, as well as other information about users. The obtained information will be analyzed and used for product development. To enhance the service standard, the company started to survey the satisfaction of dealers around the country by random calls. The aim of the survey is to explore the satisfaction and convenience of service use at Honda Wing Center. A.P. Honda Co., Ltd. Evaluation of customer satisfaction of services After providing service according to the standard stages, evaluation of customer satisfaction is needed. The obtained results will be used in service improvement in the future. Following are evaluation stages: 1. Customers use service at Honda Wing Center (HWC) 2. HWC provides standard service. 3. Customers are interviewed for satisfaction after using service. 4. The results are concluded. 5. The results are used for improvement of service and development of HWC 091 A.P. Honda Co., Ltd. Social Performance Honda’s dealer shop A.P Honda User Customers have their motorcycles serviced. Result notification / improvement Evaluate customers’ satisfaction Diagnostic Rating Weight Principles of satisfaction evaluation index Evaluation stages of satisfaction of the customers using services at Honda’s dealer shop Results of customer satisfaction of services The company evaluates satisfaction of the customers using service at Honda Wing Centers in the second and fourth quarter of the year. The results of satisfaction are concluded and used for improvement of service and development of the center to ensure the equal standard and efficiency of all centers. The evaluation was started in 2008 and has been continued until now. Following are indicators of satisfaction: 74.7 73.8 73.2 72.6 71.4 70 2008 70.8 2009 2010 2011 2012 2013 The graph showing indicators of customer satisfaction of services from 2008 – 2014 2014 092 Social Performance A.P. Honda Co., Ltd. Increasing Business effectiveness via online Today, DOSS has become the communicative tool between Honda dealers and A.P. Honda. All dealers will be system Nowadays information technology has become one of the most important tools in doing business. The company has used online communication or Internet to connect information and communicate with nationwide dealers in place of the old system. Previously, most operations, especially, motorcycle purchase orders had been done by fax. When dealers faxed the orders to the company, the staff would compile information and forwarded it to the Production Department for production planning and delivery. This procedure took a long time to complete. Therefore, the company has developed IT system to accommodate the modern business transactions. This was when Dealer Online Services System (DOSS) was created. This system allows the dealers to complete information about sales figures, which will be sent to the company. Then the company will immediately analyze the information which saves time and resources. Production planning can be done quickly. We were one of the first companies to apply this online system for operation. Percentage of case communicated via line 147,41% 32,9% Other Claim consult 61,17% 59,16% During the past 2 – 3 years, social media has become popular in Thailand. The company realized the advantage of using LINE application to promptly notify information and send and receive photos. It has been mainly used to report quality problems to the company. In 2014, 202 dealers have used LINE to communicate with the company. 390 cases have been communicated through this channel. In addition to DOSS, the company has developed other IT systems, including DAS (Dealer Administrative System) and DASi (Dealer Administrative System Integrated) to increase the effectiveness of dealers’ management and operation in order to accommodate work at Parts Service Center and to monitor the operation of the shops. FM work consult Doss consult notified of the updates, policy, movements and activities of the company, as well as information about account, guarantee, technical issues and social activities, through the system. The work of both sides is smoother, and the dealers can communicate or notify the company of any problems at any time. More importantly, the dealers are able to know which products will be delivered to their shops and when they will arrive. This supports accurate delivery to users. Furthermore, prompt collaboration between the dealers and the company helps Honda to be able to plan the production quickly and effectively in response to market demand. Both dealers and the company need not store a lot of inventory, which increases dealers’ satisfaction. Nowadays, Line is popular and it’s a tast and easy communication channel we can sent photos, VDO, and instant message. Technical consult 62,17% Mr.Wattanapong Yuikeaw (Service Center Manager) Nadpob Bangyai, Nonthaburi 093 Social Performance A.P. Honda Co., Ltd. Customer relations activities to strengthen the relationship with users Increasing brand loyalty is necessary for sales promotion under the principle of Customer Relationship Management or CRM. At present, A.P. Honda is trusted by nationwide customers as the provider of quality products. For this reason, the company started to create customer relation activities to enhance brand loyalty. The company utilizes the social media to actively build the direct relationship with customers, such as the establishment of Indy Club for the users of similar models of motorcycles or similar lifestyles to meet and do activities of their specific interest. They can also share opinions and notify the company of the problems happening to each motorcycle model. It is another channel which allows the company to understand consumer behavior and acknowledge the problems for prompt solutions. Product Advertising and Public Relations In launching advertisements, public relations materials or other kinds of marketing communication tools, the Marketing Communication Department will actually make them clear to prevent customers’ misunderstanding. All promotional tools are produced with reference to the real specifications of the products under the provisions of the Thai Industrial Standards Institute (TISI), Office of The Consumer Protection Board (OCPB), as well as strictly using the registration sign officially certified by the Department of Land Transportation in advertising campaigns and TV commercials as specified by Broadcasting Committee of Advertising Practices. There have not been any exaggerating advertisements of products or organizations which would mislead the audience for commercial purpose. The company has complied with the standards regularly, and all works will be reviewed before using or launching to the public. Furthermore, the company has never sold prohibited products and does not have policy to do so. If any comments or questions are received, prompt responses are ready to be given. 094 Social Performance A.P. Honda Co., Ltd. start to the end of the production process, invention and development of environmentally-friendly innovation and Green Dealer Network establishment, we also realize the importance of social activities which will be beneficial for In addition to our social responsibility in reducing local people in the long run. pollution derived from production process and products and product safety development, Honda also puts great efforts The company initiated social activities “A.P. Honda for to work for the society for the purpose of striving tobe the Thai Society” to provide assistance to the underprivileged company that society wants to exist. We take part in and other sectors since 2002. A specific department has creating benefit to the local society in several regions of the been set up to encourage the dealers to help the society, world according to local people’s needs. starting from the local communities where the dealers are. Development for sustainable society During the past 25 years of A.P. Honda’s business operation in Thailand, we have been well trusted by motorcycle users, which encourages us to strive for being a good organization who have run the business on the basis of honesty and transparency. Our ultimate goal is to create and provide high quality products and be trusted by every person and organization with whom we work. Apart from caring of all work procedures, ranging from the The company has facilitated the project in terms of coordination with government agencies and private sectors to ensure the smooth operation of various social activities. The aim of the activities is to foster good environment, quality education, safe riding promotion, and humanitarian aids, especially educational assistance, which is one of the main policy of Honda. We always focus on the development of Thai youths’ skill and knowledge and educational institute efficiency, which contributes to national development. Honda Philanthropy Logo 095 Social Performance A.P. Honda for Thai Society has been initiated from our intention to do the good things for Thai society both direct and indirect way. However, we need to know what exactly our social need. Therefore, we do the contribution in many activities based on the their ages especially for Thai youth which started from Preliminary until university age. Honda Wing Centers are the important driver, we do the social activity through our dealer network since they really know what the community wants. A.P.Honda will support the knowledge and a part of budget as well as the evaluation to ensure the indeed benefit of those projects or activities. As we are the big company and also we have a lot of dealers network which called Honda Wing Center. Each HWC will become the social activity center in their area towards sustainable community. Voraphoch Phornprapha, Director, A.P.Honda Co.,Ltd. Youths’ competency development project 096 A.P. Honda Co., Ltd. Social Performance “OBEC– Honda 31-leg competition” for the Royal Trophy of Her Royal Highness Princess Maha Chakri Sirindhorn “OBEC – Honda 31 legs competition” has been held with an aim to encourage the youths to realize the unity and teamwork, as well as spend their free time doing useful activities. This competition requires 30 runners whose legs are tied together while running to the finish line. As it is 31-legs competition, the participating runner are required to have tough practice and create unity among the team members for achievement. This project has been supported by the Office of the Basic Education Commission of Thailand, Ministry of Education, who continuously hosts the competition, announces the application, facilitates the delivery of competition equipment to participating schools, selects the teams to participate in the name of the educational service areas, and provides the budget to the teams representing each educational service area to compete in the regional level and national level. During the past 10 years, “OBEC – Honda 31 legs running competition” has also been supported by important government and private agencies, such as Athletic Association of Thailand, Sports Authority of Thailand, as all sectors realize the importance of taking part in encouraging the youths to learn to work as a team and have disciplines. The project has been well responded by the elementary schools who send their students to participate in the competition yearly. In the 10th year or in 2014 of “OBEC – Honda 31 legs competition”, there were 1,020 teams, or 27,000 participants. Also, there were 167 dealers supporting the expenses of the local schools. The winner of the Royal Trophy was Ban Toong Fon School, Udornthani , which completed the race with 8.54 seconds. It is not easy for 30 peoples to run together along 50-meter distance. If any of the members fall on the ground, the others cannot continue. This is why unity is important for everyone. They have to move forward together with one heart. When these runners grow up, they will learn how to work and live their life properly and become quality citizens of the country. A.P. Honda Co., Ltd. 097 Social Performance Honda Eco Mileage Challenge With the notion of “Fuel is an important energy source which gradually runs out”, the idea of inventing energy-efficient automobiles arises to save the decreasing fuel and reduce the pollution resulted from fuel combustion. Honda Eco Mileage Challenge was, therefore, initiated to promote new energy-efficient technology invention and foster automobile engineering skill of the contestants most of whom are vocational school and university students. Each participating team is required to develop the complete system of automotives, staring from planning, material selection, auto bogy and frame, as well as the invention of fuel injection system of the engine. The condition is the developed automotives must contain at least 3 wheels and the engine must be modified under the same terms and condition and techniques, use the same type of fuel, and race in the same distance with the average speed of not less than 25 km/hr. After the competition, the team whose automobile uses the least fuel will be the winner. During the past 17 years, over 500 teams from educational institutes around the country have participated in the competition. In 2014, there were 486 teams participating. The winning team used the fuel at 1,474 km/ liter. This is the project which encourages the youths to put their knowledge of automobile engineering learned in class into practice. also, they can learn the importance of energy saving at the same time. 098 Social Performance A.P. Honda Co., Ltd. One Dealer One School (ODOS) A.P. Honda believes that experiential learning is the best way to develop a person’s competency. Therefore, we initiated One Dealer One School project to develop the education of vocational school students in collaboration with Honda motorcycle dealers through 3 following activities : 1) Building safety riding awareness to vocational school students 2) Honda Eco Mileage Challenge 3) Transferring knowledge of automobile engineering to instructors and students, as well as recruiting students to do internship at the dealers’ shops. At present, there are 314 vocational schools participating in this project. Honda Red Champion The company realizes the importance of developing the youths in terms of sports, so the project to improve the standard of Thai Youth Football has been established. The recruitment of secondary school students to participate in football matches has been open to search for the winner who will be given the opportunity to practice their skill at Soccer School with Manchester United and Liverpool teams in England. This aims at inspiring Thai youths to develop football skill and their sport competency in professional manner. 099 Social Performance A.P. Honda Co., Ltd. Humanitarian Program Our commitment to provide humanitarian assistance is derived from one of our business philosophy, which is Respect for Individual. We believe that if a person is facing hardship, Honda people will feel it and be willing to help him according to the level of severity and social expectation. This includes medical assistance, disaster assistance, and poverty or shortage assistance. From this commitment, A.P. Honda initiated and operated humanitarian aids as follows : 100 Social Performance A.P. Honda Co., Ltd. Big Blood Donation across Thailand The shortage of blood is still an important problem in every society, which affects the treatment of patients who are in need of blood. The company asked for the collaboration of the nationwide dealers to hold blood donation activity in their locality to transfer blood to people who are in need through the hospitals under the Thai Red Cross Society’s supervision. From 2004 to 2014, there have been over 200,000 blood donors. The total amount of blood received is 85 million units. Upon evaluation of the project, it was found that the collaboration we received from the dealers has not been enough. We, therefore, created a plan to increase the effectiveness of the project to deliver more blood to the Thai Red Cross Society. This was when the strength of dealer network has been used as the strategy. In 2013, we raised the level of blood donation project from local level to national level under the title “Big Blood Donation across Thailand”, where the company performed as the main organization to drive the project in collaboration with the Thai Red Cross Society. We invited the dealers to hold the activity twice a year on the Mother’s Day in August and the Father’s Day in December, which lasts 15 days each. 80 dealers in Bangkok and nearby cities are asked to arrange the motorcycle caravan to donate blood at the Thai Red Cross Society on Henry Dunant. The dealers in provincial areas hold the activity at their shops by coordinating with the hospitals under the supervision of the Thai Red Cross Society to provide service to the local donors. The obtained blood will be given to the local hospital for further use. In addition to the blood donation project held by the dealers, the company arranges the blood donation for associates at Samrong Office once every three month in collaboration with Samutprakan Hospital, who provides mobile blood donation station. The donors include Honda associates and people who come from other nearby companies. In 2014, it was the 41st anniversary of the project. There have been over 6,200 participating donors. As a result of continuous operation of the project as well as the promotional campaign to invite more donors to participate, we are able to collect more than 100 million cc of blood, which reflects satisfactory responses from both dealers and customers. This is one of the most successful projects of A.P. Honda, as can be seen from the increasing number of participant year by year. The company, therefore, added this project to the principal corporate plan to ensure continuity and efficiency of the project. 101 Social Performance A.P. Honda Co., Ltd. 3. Delivering 11 items of tools and equipment to victims Khiang Khang through the Department of Disaster Prevention and Mitigation, which consists of aid packages, barges with engines, Thai Fund Honda electricity generators, Honda water pumps with Honda Khiang Khang Thai Fund was established in 2012 components, high-pressure water injections, tents, blankets, as an emergency fund to help Thai people when facing t-shirts, drinking water, and lifejacket. natural disaster, along with building collaborative network and giving knowledge of how to deal with disaster for people 4. Delivery of cold weather prevention sets to the victims who live in the risky areas. Honda Group Thailand gives through the Department of Disaster Prevention and 1,000 baht obtained from one sold car, 100 baht from one Mitigation, which consists of 3 items: 80,000 children’s coat sold motorcycle and 10 baht from one power product to and 40,000 children’s socks, total 140,000 pieces, delivered systematically support the fund. At present, starting from by caravan to the victims in 13 provinces in the north and 1 April 2012 to 31 December 2014, the fund has received northeastern regions, during 10 – 16 November 2014. around 900 million baht. The money has been spent to continuously help disaster victims, including victims of cold 5. Collaborating with the Department of Disaster weather, flood and other. Following is the outcome of Prevention and Mitigation in arranging the training for 300 performance in 2014 : participants of preparation for Tsunami disaster in the Honda communities in Nan, Lamphun, Nakorn Sri Thammarat, 1. Offering fund to Her Royal Highest Princess Maha Krabi, Phang Nga and also Nan and Loei for landslide Chakri Sirindhorn for the Department of Disaster Prevention and disaster. Mitigation to produce extrication tools for rescue operations. 6. Collaborating with the Department of Disaster 2. Donation to Chaipattana Foundation to support Kaem Prevention and Mitigation in arranging the training for 240 Ling Project under the Royal Initiative to solve water problem youths to prepare for disaster in the risky areas, including in Lop Buri Province. Lampang and Chiang Rai. 102 Social Performance A.P. Honda Co., Ltd. Social Activity by Honda Dealer in theirs locality The company encourages the dealer network to live sustainably with the community by providing assistance to fulfill the needs of local communities where the dealers are located. This expected to lead to strong and self-reliant communities. The dealers are fostered to hold activities to give benefits to the communities and the needy schools in the following 3 domains, which are education – construction of buildings, libraries, stadiums, stationaries, and uniforms to the schools; humanitarian – blood donation, medical aid kits donation to the local hospitals, donation of motorcycle to support police officers’ work, making of signs to promote traffic safety, donation of things to help flood, landslide and cold whether victims; and environment – Honda Eco Mileage Project, Tree Planting in schools and communities to reduce global warming, and so on. The company has supported 50% of the activity budget. In 2014, 406 dealers participated in the activities, which was beyond the expected number of 387 participants, accounting for 104.9%. The number increased from 2012 and 2013 by 29% and 134%, respectively. There have been 1,177 activities, which increased from 2012 and 2013 by 100% and 20.1%, respectively. Amount of social activity by Honda’s dealer Activity 1,400 1,177 1,200 1,000 800 661 600 550 400 200 0 2012 Educational 2013 Humanitarian 2014 Year Environment Amont of dealer shop doing social activity Honda Shop 450 406 400 350 314 300 250 200 173 150 50 0 2012 2013 2014 Year A.P. Honda Co., Ltd. 103 Social Performance Associates’ Volunteering Activities A.P. Honda initiated and held the volunteering activities to encourage the associates to realize the importance of helping the society. Environmental activities have been done to improve the ecosystem in the area. Blood donation to the Thai Red Cross Society has been arranged for the associates to give benefit to other people. Following are our activities: Volunteering activity of “Safe driving” has been arranged by having the associates to ride motorcycle to do environmental activity, mending school buildings, installing solar cell panels in schools, and delivering stationaries to elementary schools together with local dealers. In 2014, the activities have been held three times with around 300 associates attended. 104 Award received 2014 A.P. Honda Co., Ltd. 11. Awards received 2014 Award TCC Business Ethics Standard Test Award Organization The Thai Chamber of Commerce Award the Letter of appreciation to the Diffusion Activity of Safety Drive Education in Thailand Organization International Association to Traffic and Safety Sciences (IATSS), Japan Award Most Powerful Brand of Thailand Award Motorcycle category (2011-2014) Organization Faculty of Commerce and Accountancy, Chulalongkorn University Award Thailand Automotive Quality Award Motorcycle category Organization Thailand Productivity institute Award Most Admired Brand Award Consecutive year, 2005 - 2014 Organization Brand Age Magazine Award No.1 Brand Thailand Award year 2010-11, 2011-12, 2012-13,2013-14 Organization Marketeer Magazine 105 GRI Content Index A.P. Honda Co., Ltd. GRI Content Index This SD Report has been assessed at B Level based on the GRI reporting guidelines. Every indicator is referred from the GRI G3.1 guidelines. Corporate profile 1 Page Remarks 4-6 36-38 Organizational Profile 2.1 Name of the organization. 2.2 Primary brands, products, and/or services. 10 10-11 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. 2.4 Location of organization's headquarters. 10 2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered 2.6 Nature of ownership and legal form. 10 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). 2.8 Scale of the reporting organization. 11 2.9 Significant changes during the reporting period regarding size, structure, or ownership. 2.10 Awards received in the reporting period. 3 Fully Strategy and Analysis 1.1 Statement from the most senior decision-maker of the organization 1.2 Description of key impacts, risks, and opportunities. 2 Partial 10 10 10-11,44 - No Significant Change in Reporting Period 104 Report Parameters Report Profile 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. 8 3.2 Date of most recent previous report (if any). - First SD Report 106 GRI Content Index A.P. Honda Co., Ltd. Corporate profile 3.3 Reporting cycle (annual, biennial, etc.) 3.4 Contact point for questions regarding the report or its contents. Report Scope and Boundary 3.5 Process for defining report content. 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance. 3.7 State any specific limitations on the scope or boundary of the report (see completeness Principle for explanation of scope). 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/ or between organizations. 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods). 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. GRI content index Partial Fully Page Remarks 8 9 8 8 8 8 8,46,55 - First SD Report - First SD Report 3.12 Table identifying the location of the Standard Disclosures in the report. Assurance 105-112 3.13 Policy and current practice with regard to seeking external assurance for the report. 55 Only Environmental Performance 107 GRI Content Index A.P. Honda Co., Ltd. Corporate profile 4 Partial Fully Page Gorernance, Commitments, and Engagement Governance 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational 4.2 Indicate whether the Chair of the highest governance body is also an executive officer. 4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives. 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. 4.7 Process for determining the composition, qualifications and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. 4.9 Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance. 26-27 27 27-28 28-29 28 27,31 27 22-24 35 35 Remarks 108 GRI Content Index A.P. Honda Co., Ltd. Corporate profile Partial Fully Page Remarks Commitments to External Initiatives 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations. 46 36,46 24,43 Stakeholder Engagement 4.14 List of stakeholder groups engaged by the organization. 39 4.15 Basis for identification and selection of stakeholders with whom to engage. 39 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. 40-43 Disclosure Management Approach 40-43 Page DMA EC Economic Performance 22-25 DMA EN Water Emissions, effluents and waste Products and services Transport Compliance 49 46-48, 50-51 46,54 54 46,54 Remark 109 GRI Content Index A.P. Honda Co., Ltd. Disclosure Management Approach Page Remark DMA LA Employment 57,60,64 Labor/management relations 67-68 Training and education 68-70 Diversity and equal opportunity 70-71 DMA HR Non-discrimination 72 Freedom of association and collective bargaining 72-73 Remediation 75 DMA SO Corruption 33-34 Compliance 36-38 DMA PR Customer health and safety 76-79 Product and service labeling 86-91 Marketing communications 93 Economic Performance Indicator Partial Fully Page Economic performance EC1 EC2 EC3 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Financial implications and other risks and opportunities for the organization's activities due to climate change. Coverage of the organization's defined benefit plan obligations. 44 37-38 68 Remarks 110 GRI Content Index A.P. Honda Co., Ltd. Environmental Performance Indicator Partial Fully Page Water EN8 49 Total water withdrawal by source. Emission, effluents and waste EN16 Total direct and indirect greenhouse gas emissions by weight. EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. EN19 Emissions of ozone-depleting substances by weight. 46 48 48,50 EN20 NO , SO , and other significant air emissions by type and 50 weight. Total water discharge by quality and destination. 49-50 EN21 EN22 Total weight of waste by type and disposal method. EN23 Total number and volume of significant spills. 50-51,53 50 Products and services EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. 54,79-80 Compliance EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Transport 54 EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce. 54-55 Remarks 111 GRI Content Index A.P. Honda Co., Ltd. Labor Practices and Decent Work Performance Indicator Partial Fully Page Employment LA1 LA2 LA3 LA15 LA4 LA5 Total workforce by employment type, employment contract, and region broken down by gender. Total number and rate of new employee hires and employee turnover by age group, gender, and region. Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Return to work and retention rates after parental leave, by gender. Labors management relations Percentage of employees covered by collective bargaining agreements. Minimum notice period(s) regarding significant operational changes, including whether it is specified in 57-59 61-63 64-65 66 67-68 68 collective agreements. Training and education LA10 Average hours of training per year per employee by gender and by employee category. LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. LA12 Percentage of employees receiving regular performance and career development reviews by gender. Diversity and equal opportunity LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. 69 68-70 70 71 Remarks 112 GRI Content Index A.P. Honda Co., Ltd. Human Rights Performance Indicator Partial Fully Page Remarks Non-discrimination HR4 Total number of incidents of discrimination and corrective actions taken. Freedom of association and collective bargaining HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights. Remediation HR11 Number of grievances related to human rights filed, addressed, and resolved through formal grievance mechanisms. Social Performance Indicator 72 73-74 75 Partial Fully Page Remarks Anti – corruption SO4 34 Actions taken in response to incidents of corruption. Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Product Responsibility Performance Indicator 34 Partial Fully Page Customer health and safety Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. Product and service labeling 76-79 PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Marketing communication 90-92 PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. 93 PR1 PR2 79 Remarks 113 A.P. Honda Co., Ltd. GRI Content Index G3.1 Performance Indicators & sector Supplement Performance Indicators 2.1 -2.10 1.2 3.1 - 3.8,3.10 - 3.12 3.9, 3.13 4.1 - 4.4 , 4-14 - 4.15 4.5 - 4.13, 4.16 - 4.17 Not required Report on a minimum of 10 Performance Indicators, including at least one from each of : social, economic, and environment Management Approach Disclosures for each indicator category Report on minimum of 20 Performance Indicators, at least one from each of: economic, envoronment, human rights,labor, society, product responsibility. Same as requirement for level B Management Approach Disclosures for each indicator category Report on each core G3 and Sector Supplement* indicator with due regard to the materiality Principle by either : a) reporting on indicator or b) explaining the reason for its omission Report Externally Assured Report on criteria listed for level C plus : Report Externally Assured Report on : 1.1 Report Externally Assured G3.1 Management Approach Disclosures OUTPUT Standard Disclosures OUTPUT G3.1 Profile Disclosure OUTPUT Report Application Level Honda Group of Companies in Thailand 1. Asian Honda Motor Co.,Ltd. Honda’s Asia-Oceania Regional Headquarters 2. Thai Honda Manufacturing Co.,Ltd. Manufacturer of Motorcycles, power products and their components. 3. A.P. Honda Co.,Ltd. Motorcycle distributor 4. Honda R&D Southeast Asia Co.,Ltd. Motorcycle R&D for the ASEAN region 5. Honda Automobile (Thailand) Co.,Ltd. Manufacturer and distributor of automobiles 6. Honda R&D Asia Pacific Co.,Ltd. Automobile R&D for the ASEAN region 7. Honda Leasing (Thailand) Co.,Ltd. Financing and leasing of automobiles. 8. Honda Trading Asia Co.,Ltd. Trading Automotive parts and materials 9. Asian Parts Manufacturing Co.,Ltd. Sales, distribution and logistics management for parts across Asia 10. Honda Engineering Asian Co.,Ltd. Engineering base for development and production of automobile production equipments 11. Honda Access (Thailand) Co.,Ltd. Marketing, sales and export services for automobile accessories