GRI
INDICATOR

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LA1

Breakdown of workforce, by region/country, status, employment type, employment contract

16

DMHU employs only on a full time base. The Japanese/Hungarian employee ratio was43/2,724 on average in 2005. Please see the charts for further information.

LA2

Net employment creation and average turnover segmented by region/country

17

The net employment creation amounted to 755 employees in 2005.

LA2 G3

Total number and rate of employee turnover broken down by age group and gender

17

The total number of employees leaving employment in 2005 amounted to 407. The employee turnover was 15%.

LA3

Percentage of employees repre-sented by independent trade union organizations broken down by percentage of employees covered by collective bargaining agreements

17

Our Vasas Trade Union, which was founded in 2003, represents our employees’ interests. In 2005 about 200 employees were represented by the labor union what makes a percentage of 7% (200/2,802=7.14%).

LA4

Policy and procedures involving information, consultation, and negotiation with employees over changes in the reporting organisation’s operations.

17

In our associate handbook, policies and several procedures concerning the information exchange within the management, and between the management and the employees are noted as in the articles 3.5.3. and 3.5.5..

Article 3.5.3.: Regular Meetings: “For internal communication various kinds of regular meetings are held, such as departments’ weekly meeting. The President meets the Managers weekly in order to discuss tasks and results. Associates meet the President regularly in the Associate Meeting where information is shared about all issues.”

Article 3.5.5.: Internal Information Flow: “When immediate information flow is required involving all Associates, loud announcement is made.” Furthermore, there are “postings on the board at the Associate entrance in the building. Please read DMHU NEWS, our internal periodical info-sheet.”

LA5

Practices on recording and notification of occupational accidents and diseases, and how they related to the ILO Code of Practice on Recording and Notification of Occupational Accidents and Diseases

17

Our processes follow ILO regulations, on which the Hungarian Work Safety and Employment Health Law is based. Our OHSAS 18001 System ensures that it is continuously followed and corrected.

All accidents, injuries, which occurred in the company or are affected to the job – e.g. accidents on the way between home and DMHU, or tiredness, illness, etc. - have to be reported to the SHE department on a regulated form. If an incident causes lost time from work we report to the responsible area ‘Safety Authority’ until the 8th of the next month. Serious accidents shall be reported immediately.

This procedure has to be applied to the occupational illness, but additionally information has to be sent to the Sanitary Service.

LA6

Description of formal joint health and safety committees comprising mana-gement and worker representatives and proportion of workforce covered by any such committees

18

At DMHU there is a Work Safety Committee responsible for the ergonomic aims concerning the workplace. In 2004 we have elected the members of the Work Safety Committee. This committee solely comprises of worker representatives.

In order to create a safer and healthier working environment we also involve all associates. Employees can turn in their requests and suggestions to the area committee members or directly to the SHE department. The requests are discussed on the monthly committee meetings, which are called by the committee members. Direct requests arise usually during periodical SHE inspections, representative meetings or through different reporting forms.

LA7

Standard injury, lost day, and absentee rates and number of work-related fatalities

18

In 2005 no serious or fatal accidents have occurred as well no registered occupational illness took place based on our operations.

The total number of accidents (including subcontractors) in 2005 was 72; the number of lost working days due to the accidents was 275 days, which means 3.9 days lost per accident. Although the number of staff increased by almost 1,000 employees compared to 2003 and we started to produce new products, the number of accidents per person did not increase. This is due to our emphasis on proper training what is reflected in our OHS costs of 317 EUR for one associate in 2005.

In the following table, the main figures concerning health and safety of the past three years are summarized:

In 2003 there were 243 days missed due to accidents, that is, 4 days missed per accident on average. In 2004, we registered 240 work-days missed and 6 days missed per accident on average.

LA8

Description of policies or programmes on HIV/AIDS

18

DMHU does not pursue any programs or policies on HIV/AIDS, but all our employees have the opportunity to receive a free and anonymous AIDS test at our medical facilities.

LA9

Average hours of training per year per employee by category of employee

18

LA10

Description of equal opportunity policies or programmes, as well as monitoring systems to ensure compliance and results of monitoring

19

Our associated handbook regulates in article 4.1 the equal opportunity policies. However, there is no monitoring system in order to ensure their compliance at DMHU.

Article 4.1: Equal Opportunities: “It is the policy of DMHU to employ qualified persons without discrimination against any Associate for employment, not considering race, religion, handicap, sex, national group, age, or any status as sub-group. DMHU, as all companies in Hungary, requires so called Ethical Certificate from all Hungarian Associates. All personnel actions, such as compensational, educational, social, recreational programs will be administrated to all DMHU Associates without regard to any discriminative respect. Career planning and company sponsored training are realised as result of Training Need Analysis.”

LA11

Composition of senior manage-ment and corporate governance bodies including female/male ratio and other indicators of diversity as appropriate

19

The DMHU type of enterprise does not include a board of directors. The composition of the senior management is structured as followed: President: 1 Japanese/Male; Vice president: 3 Japanese/Male; Director: 2 Japanese/Male; Senior Manager: 7 Japanese/Male and 1 Hungarian/Male. Thus, Japanese and male mainly characterize the top management. Only in the general management we have 3 women of Hungarian nationality and more Hungarian male managers.

HR1

Description of policies, guidelines, corporate structure, and procedures to deal with all aspects of human rights relevant to operations, including monitoring mechanisms and results. State how policies relate to existing international standards such as the Universal Declaration of Human Rights and the Fundamental Human Rights Conventions of the ILO

19

DMHU does not have its own ethical code but we adhere strictly to the regulations of the Hungarian laws, which are based on the ILO conventions.

HR2

Evidence of consideration of human rights impacts as a part of investment and procurement decisions, including selection of suppliers/contractors

19

Our parent company Denso Japan makes a major contribution to the selection procedure concerning investment and procurement decisions. Purchasing at DMHU is mostly about acting as an intermediary (requesting quotes and sending them on to the parent company) and keeping the contact (negotiations and audits) with the suppliers. In general, the main factors of the supplier selection are quality, price, performance and delivery conditions.

HR3

Description of policies and procedures to evaluate and address human rights performance within the supply chain and contractors, including monitoring systems and results of monitoring

19

No direct policies of such kind and monitoring systems are available at DMHU, but we adhere strictly to the regulations of the Hungarian laws, which are based on the ILO conventions.

HR4

Description of policy and procedures preventing all forms of discrimination in operations monitoring systems and results of monitoring

20

In the DMHU Associate Handbook the paragraph 6.1. regulates our non-discrimination policy which is communicated throughout the whole corporation. However, there is no monitoring system applied.

Article 6.1.: General Behaviour states the following: “Beyond the written technical regulations, safety rules and related Hungarian Legal Regulations general human behavioural rules should be kept on working sites as well. Associates must respect each other and should never disturb the other in working or hurt in human dignity neither in words nor in action. Harassment of any kind will be severely dealt with as detailed by 4-Step-Procedure.”

HR5

Description of freedom of association policy and extent to which this policy is universally applied independent of local laws, as well as description of procedures to address this issue

20

DMHU does not have a separate policy describing the freedom of association and collective bargaining, but we adhere strictly to the regulations of the Hungarian laws, which are based on the ILO conventions.

HR6

Description of policy excluding child labour as defined by ILO Convention 138

20

DMHU does not have a separate policy describing the exclusiveness of child labor, but we adhere strictly to the regulations of the Hungarian laws, which are based on the ILO conventions. Accordingly, we do not employ children at our company.

HR7

Description of policy to prevent forced and compulsory labour

20

DMHU does not have a separate policy describing the prevention of forced and compulsory labor, but we adhere strictly to the regulations of the Hungarian laws, which are based on the ILO conventions.

SO1

Description of policies to manage impacts on communities in areas affected by activities, as well as description of procedures/programmes to address this issue, including monitoring systems and results of monitoring

20

There are no policies existing at DMHU in order to manage impacts on communities created by the operations of DMHU.

SO2

Description of the policy, procedures/management systems, and compliance mechanisms for organisations and employees addressing bribery and corruption

20

Policies addressing bribery and corruption cannot directly be found in the DMHU regulations, but DMHU is following the Hungarian legislations including policies, which are covering this matter.

SO3

Description of policy, procedures/management systems, and compliance mechanisms for managing political lobbying and contributions

20

Policies for managing political lobbying cannot directly be found in the DMHU regulations but DMHU is following the Hungarian legislations, including policies, which are covering this matter. Additionally, a general corporation rule says that no DENSO subsidiary is member of any political or governmental organization, authority, foundation or any other supporting body. Thus, DMHU is not supporting political organizations of any kind but the company supports anti-trust activities at all levels.

SO4

Awards received relevant to social, ethical, and environmental performance

20

DMHU has not received any awards regarding social, ethical, and environmental performance in 2005.

PR1

Description of policy for preserving customer health and safety during use of products and services

20

Customers and their health and safety has priority number one for us. This philosophy is anchored in our quality regulations and is applied in the following life cycle stages:

• Development of product concept – performed at the headquarters Denso Japan
• R&D – performed at the headquarters Denso Japan
• Certification – at DMHU
• Manufacturing and production – at DMHU
• Marketing and promotion – no information
• Storage distribution and supply – no information
• Use and service– not directly but via the customer satisfac-tion questionnaire sent to the automotivecar manufactures
• Disposal, reuse or recycling – when the recycling process of the components is taking place an evaluation of their composition is done

PR2

Description of policy, procedures/management systems, and compliance mechanisms related to product information and labeling

21

CE labeling is carried out for all our products. The Common Rail System has received the environmentally friendly label from the Japanese government. These procedures require product/service information on:

• Content, in particular with regard to substances that might pose an environmental or social impact.

PR3

Description of policy, procedures/management systems, and compliance mechanisms for consumer privacy

21

DMHU is following the policy, which states that all the data regarding suppliers, customers, and employees is under protection.