Dialogue for Better Workplace Environment

Toshiba Information Equipment (Philippines), Inc. (TIP) is a manufacturing base for hard disk drives. Since the commencement of operations in 1996, TIP's production capacity has been expanded to accommodate the transfer of production from Japan. In 2007, TIP's cumulative production of hard disk drives reached 100 million units. In terms of its contribution to the Philippines' economy, TIP accounts for almost 3% of the country's exports.

TIP positions its ongoing contribution to the well-being of the local community within the framework of its endeavors to ensure the long-term sustainable development of the business. Accordingly, TIP's management views active engagement in dialogue with the 9,000-strong workforce to provide a better working environment as vitally important. In 2002, TIP became the first Southeast Asian company to obtain SA8000^Note certification. Employees' views are reflected in steps taken to improve the working environment. In SA8000 audits conducted every six months, external auditors randomly select several dozen employees and conduct interviews. To ensure that the employees can express their opinions freely, the interviews are conducted without the attendance of any representative from TIP's management or the Human Resources and Administration Department.

TIP holds monthly meetings with employee representatives and also provides opportunities for direct dialogue with production workers. Additionally, employees' opinions and requests are collected in suggestion boxes installed at the cafeteria, etc. Once all the opinions are examined, the results are posted on the intranet or published in a newsletter. Recent examples of improvements reflecting employees' views are the introduction of uniforms with improved ventilation for workers on the testing line and the installation of electric fans in the locker rooms.

TIP's corporate citizenship activities include the dispatch of its medical staff to contribute to the local community. While maintaining a close dialogue with local residents, TIP will continue to contribute to the local community through the establishment of a scholarship system and through efforts to raise awareness of issues ranging from trash separation to energy conservation.

Note:

SA8000: A standard concerning the protection of the human rights of workers in the global labor market, established by Social Accountability International (SAI), a CSR assessment organization based in the U.S.

TIP promotes supplier CSR activities based on the SA8000 concept. While selecting suppliers of parts and materials and providers of services such as canteen, shuttle bus operations and cleaning, TIP ensures environmental consciousness, prohibition of child labor, and other CSR-related matters in addition to the costs and contents of those services.

TIP also conducts CSR audits of existing suppliers. Audits covered 20 major suppliers in 2005, 14 chemical substance suppliers in 2006, and 13 secondary suppliers in 2007. TIP has requested improvements from certain suppliers with regard to working environment, working hours, or other aspects. The scope of this ongoing program of CSR audit is to be reviewed gradually.

In addition to striving for working environment improvement in the supply chain, TIP implements measures to manage the health and safety of its employees. There are two medical clinics with four full-time physicians at TIP. Also, health and safety patrols are conducted by the employees for the purpose of continuous improvement.

As a result of these activities, TIP has experienced only one accident leading to absence from work during the past four years, an extraordinary performance; and the incidence of occupational disease has been virtually zero. TIP is scheduled to acquire OHSAS certification in FY2008.