Fujikura co. LTD Student  

Fujikura co. LTD Student

Introduction

Fujikura co. LTD is a Tokyo electric equipment manufacturing company, which produces and develops telecommunication, such as optical fiber cable, electrical wire, and cables (Fujikura ESG report, 2019).

Integrated thinking is when all forms of capital tare actively considered (financial capital manufactured, intellectual, human, natural, social, and relationship), which allow organizational inputs to be processed and transformed as outputs and outcomes. (IIRC, 2013, p. 7) Knauer and Serafeim (2014) believe that integrated thinking helps in the achievement of “sustainable profitability.” An organization has all the means and powers to make explicit efforts to develop integrated thinking and embed sustainability in the company’s business model.

Criticize Real report

Fujikura is a global organization. It is a business entity; according to IFRS 3, it includes input, process, and output. According to the Fujikura Co.environmental social governance (ESG) report, updated information involves copper, polyethylene, and aluminum are used to manufacture products. Leads to cash flows, greenhouse gas, and waste chemical substances are also generated simultaneously. Therefore, the Fujikura group has a corporate social responsibility to be operating environmentally friendly to meet the Sustainable Development Goals (SDGs) of the society globally.

The mid-term target of 2020, is CO2 emissions reduction, save water, and protect biodiversity, which is CSR priority measures. To meet those targets, the Fujikura group introduces the ECO-PASS environmental information collection system to share and analyze data, resulting in visualizing environmental performance to improve the efficiency of environmental data collection. Besides, they focus on educating people, such as employees, management, and internal environmental auditor on the requirements of the ISO14001 environmental management system. Furthermore, employees also participate actively in energy-saving and recycling activities and also raise awareness through ecological lectures.

The 2018 financial year results, in the aspect of CO2 emissions reduction, it met half of its target. It also achieved two goals of better biodiversity conservation and green products. However, they didn’t accomplish a water-saving objective due to the excessive use of water.

Fujikura Co. had invested 2014.9 million yen to prevent pollution, but in April 2018 to March 2019, they had spent 4211.2 million yen in pollution prevention. And also 646.8 million yen for the training and development of R and D of environmentally friendly products. Although these costs exceed benefits, as a global scale, the large organization should comply with law and regulation to operate and contribute to the local community. The best thing an entity organization can do is to protect biodiversity because they are aware of the close relationship between business activities and the natural environment. They should also set higher voluntary standards by actively responding to the challenges facing climate change. However, they have not achieved all of this due to the operational efficiency of the employee and factory usage.

Fujikura focuses on integrated thinking because they have a long-term target of 2050, which is the strategic focus and future orientation. They invest their capital into the ECO-pass system and in spreading environmental protection education to people. Finally, most of their generated income is put into a reduction of Co2 emissions. As a result, the company’s reputation has grown, and profitability has increased. Money can be reinvested in the enterprise, which can operate for a long time without harming human beings’ habitat, thus maintaining the stability of the global economy.

Vision 2030 was introduced by Fujikura Group in 2017, which was meant to help society solve problems comfortably and sustainably in the future, through solving social problems that are connected to people, things, stories, and stories. And this includes technology, brand, human resources, culture, and health management. And this will help in the sustainability of Fujikura Group.

To the social aspect, the Fujikura group pays attention to consumer issues, including quality policy and quality assurance systems. This system optimized based on the ISO 9001 standards, for example, regular meetings, reports, and communication. Management uses KPI to measure product quality. For quality management, Fujikura Co. introduces a personnel training plan to educate all young technicians. They also focused on the safety and health of all employees; safety pledge was published in 2016 because of the accident that occurred in the company. Although they post their safety pledge to promise everything, some accidents may not be avoided or prevented. It seems like an empty promise. However, the disaster drill is performing very well; it responds to earthquakes.

Fujikura Co. has developed a human right policy that is used to protect all the employees. Besides, they meet the accountability need because of disclosure actively. This company has built a corporate culture to establish a system that considers its employees proactively, resulting in increasing customer value and fulfillment of social responsibilities. Furthermore, the company complies with corporate ethics rules, such as labor laws that pay wages, allowance, and pensions, they are against child labor and prohibit human trafficking.it has done well in employing people from different nations, it has also increased female employees proportion, improve the diversity of employees and emphasize the vital role of women in the enterprise. Also, the company has employed more disabled people, who can earn their living by working in enterprises, thus reducing the unemployment rate and the financial burden on society.

They made a foundation in 1885 that helps a lot in the social contribution. Nine things happened between 1916 and 2020, which involved five main characters in the enterprise, who made contributions to society. A scholarship system was established to support Myanmar’s development. They are donating healthy lunches to developing countries. These events appear to be real rather than promotional for the company, as real photos are posted on the official website of Fujikura Co. All of the above can be reflected as integrated thinking because the group pay salaries and pension to their employee and respect them. Employees can work in the group comfortably and happily. These social benefits will transform into human capital because this company has a good reputation, hence making people with much skills and talent want to join the group. And then, excellent human capital will transform into intellectual capital. This makes the company have a competitive advantage. Every employee will have to play his/her role in the company, as they fully contribute to society, hence maintain the companies mission ‘live with society.’ The company actively implements consumer issues, and this is human rights and diversity of employee nations; this always results in an increase in customers.

The economic aspect should not focus on the past financial data to measure whether it is bringing profit to the entity. More attention should be paid to the plan of long-term strategy issued by management because it relates to an organization’s ability to create value in the short, medium, and long-term and how it affects the capitals. Three plans were published, 2020 mid-term management plan, 2030 vision, and environment long-term vision 2050, which is a short-term, medium, and long-term strategy. The short-term goal is profitability and revitalization. At the same time, it has strengthened environmental, social, and governance to strive to achieve sustained growth and corporate value enhancement. Fujikura’s business plan uses the pyramid model to help them in their operation, and this will help them achieve their 20150 vision.log-term vision is linked to employment, it has precise plan details, action guidelines, and transparent process. It identifies four main challenges for 2050.this plan concentrates on protecting habitat for future generations. As long as a human being and global society continue to survive, then the economy will remain stable, and therefore corporate will continue to operate and generate profit due to a favorable environment. But the plan seems to have an unrealistic idea, and the first main challenge is zero CO2 emissions of factories, it seems impossible to achieve unless scientist has a new invention. But there are many numbers of discoveries to come yet, that could help to solve the global warming problem.

CONCLUSION

In conclusion, integrated thinking is different from traditional business decision-making, which is focused on short-term financial outcomes. (Integrated Thinking. 2017) Integrated thinking combine with best practices, it can also help inboard frame reporting, and this will help in the quality of the decision making. Better integrated thinking and decision making provide a thorough understanding of the business model, resulting in good governance and performance management and better reporting, which means that better business. Performance management and better reporting, which means better business. CGMA holders encourage deep consideration of the process of reporting, not just to communicate itself. Integrated thinking support business decision making it not only to have a better competitive advantage but also to contribute whole world society stability, economic and sustainable development.

Reference:

Knauer, A. and Serafeim, G. (2014), “Attracting long-term investors through integrated thinking and reporting: a clinical study of a Biopharmaceutical company”, Journal of Applied Corporate Finance, Vol. 26 No. 2, pp. 57-64.

Fujikura. Ltd ESG Report. Undated [online] Available at: <https://www.fujikura.co.jp/eng/esg/index.html> [Accessed 15 March 2020].

Integrated Reporting Framework. 2013.  [ebook] International Integrated Reporting Council. Available at:<https://integratedreporting.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf> [Accessed 14 March 2020].

Integrated Thinking. 2017. [ebook] CIMA Global Academic Research Program

Available at: <https://www.cimaglobal.com/Documents/Research%20and%20Insight/Integrated%20Thinking%20Report%20vol%2013%20issue%203.pdf> [Accessed 16 March 2020].

Topazio, N., 2014. INTEGRATED THINKING. [online] Cgma.org. Available at: <https://www.cgma.org/content/dam/cgma/resources/reports/downloadabledocuments/integrated-thinking-the-next-step-in-integrated-reporting.pdf> [Accessed 18 March 2020].

Oliver, J., Vesty, G. & Brooks, A., 2016. Conceptualising integrated thinking in practice. Managerial Auditing Journal, 31(2), pp.228–248.